Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (November 2014)
52 slides from Alma Media Oyj's investor day presentation, Nov 27, 2014
Slide 1: Welcome to Alma Media Capital Markets Day
Welcome to Alma Media Capital Markets Day 27.11.2014
Slide 2: Programme
Programme 9.00 Morning coffee 9.30 Insights into digital strategy Kai Telanne 10.30 Coffee break 10.45 Financial development Juha Nuutinen 11.05 Q&A 11.20 Closing remarks Kai Telanne 11.30 Lunch with management 2
Slide 3: Insights into digital strategy
Insights into digital strategy Kai Telanne, President and CEO
Slide 4: Advertising volumes in Finland follow GDP
Advertising volumes in Finland follow GDP 15% 10% 5% 0% -5% -10% -15% -20% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual GDP change Annual advertising volume change Sources: Statistics Finland, Finnish Advertising Counc
Slide 5: Newspaper reading is going mobile
Newspaper reading is going mobile 120 Reading on a weekly basis 100 96 95 95 94 92 92 89 80 Spring 2011 63 Autumn 2011 60 62 58 59 59 Spring 2012 60 57 Autumn 2012 Spring 2013 40 35 Autumn 2013 28 Spring 2014 23 21 20 18 15 15 11 11 8 7 4 1 2 0 Printed newspaper Desktop or laptop Mobile phone Tablet
Slide 6: Share of devices with internet access become more common
Share of devices with internet access become more common Which of the following devices do you own or use at the % moment? Laptop computer 77 TNS Gallup Digital/ NetTrack January 2014, N=1111 Smartphone 65 Age group 15-69 Desktop computer 56 Tablet computer 31 TV-set or game console with internet ac
Slide 7: Mobile internet use is very diverse
Mobile internet use is very diverse Reading e-mail 34 47 Using search engines 27 39 Using maps or navigating services 24 37 Reading ordinary www-pages 28 36 Reading pages designed for mobile devices 23 33 Social networking 24 32 Using other apps 17 29 Using banking services 14 Using default apps ins
Slide 8: Change in media use impacts the media market
Change in media use impacts the media market 2014 2024 2034 Passive media use 23 % 20 % 17 % Traditional and passive media use Traditional media use 19 % 15 % 12 % decreasing Active social media use Active social media 20 % 25 % 28 % & international news International use increasing media use 15 % 2
Slide 9: Trends shaping consumer behaviour and implications on content
Trends shaping consumer behaviour and implications on content Trends Media content Continuous updates of MEDIA 24/7 content Entertainment More ENTERTAINING content iMedia Curation Implications Shareability of on Linking content content to INTERNATIONALITY content international USABILITY with article
Slide 10: Online advertising has risen above TV advertising
Online advertising has risen above TV advertising Print Online TV 43 % 24 % 23 % Share of the three biggest media groups in advertising Q3 2014. Source: TNS Ad intelligence (display, classified, ad spending) and IAB Finland (search, search engines, Facebook) 10
Slide 11: How do we respond?
How do we respond? 11
Slide 12: The focal points of the implementation of Alma Media strategy in 2014
The focal points of the implementation of Alma Media strategy in 2014 Multi-channel Resources and Marketing solutions Digital services content expertise We will build new capacities, seek efficiency and accelerate growth in digital services and media. 12
Slide 13: Spearheads for Alma Media's digital growth
5 spearheads for Alma Media’s digital growth #1 Europe-wide services for recruiters. #2 Digital newspaper content sales. #3 Online television for millions. #4 Digital advertising w/ audience targeting. #5 Digital information and services for businesses. 13
Slide 14: We produce content at the speed and scale of the digital age
We produce content at the speed and scale of the digital age 315 new pieces of content 20+ new videos every published on the day internet or on mobile every hour. 500 800 printed stories reporters and editors every day 14
Slide 15: We have grown the digital audience in all our media
We have grown the digital audience in all our media +23% growth in visits from the beginning of 2014 40% of visits to Alma Media’s biggest online sites were 6,134,932 from smart phones or tablets in October 2014. weekly visits in Alma Media network, week 44/2014 15
Slide 16: Going mobile – a cross-screen experience for audience and advertisers
Going mobile – a cross-screen experience for audience and advertisers 30+ Advertising sold in mobile has grown 90% new mobile apps launched since 2013. Mobile traffic has grown since Q3/2013 in 130% Alma Media. 16 in the last 18 months.
Slide 17: Since launch IL-TV has grown and monetised a significant audience
Since launch IL-TV has grown and monetised a significant audience 3,300 videos uploaded. Most popular video 74M video views since launch. ”Skoda driver messed up”: 700,000 video views. 17
Slide 18: Using real-time data to stay up with the momentum
Using real-time data to stay up with the momentum Engagement Headline optimisation Real-time dashboards Social trends SEO 18
Slide 19: Alma Media knows and reaches Finns
Alma Media knows and reaches Finns 80% 50% 43% online print mobile 19 TNS Atlas 7-12/2013, TNS Gallup Oy
Slide 20: Turning point in Alma Media advertising: Online rose above print in Q3 2014
Turning point in Alma Media advertising: Online rose above print in Q3 2014 Online Print 51 % 49 % Distribution of Alma Media advertising sales, Q3 2014 20
Slide 21: Our investments and divestments support efficiency and digital growth
Our investments and divestments support efficiency and digital growth Acquisition of the More focus on leading online recruitment and recruitment housing services. Preparations of services in Slovakia Divestments of Strenghtened the acquisition of and neighboring Mascus and cooperation with the lead
Slide 22: Internationally growing media company
Internationally growing media company Revenue 2013 Revenue 2013 by geography by source Digital media and services 28 % Other 14 % 300 MEUR Finland Printed 86% media and other 72 % Inter- 13 15 18 36 41 national revenue 295 296 298 284 259 Revenue from Finland 2009 2010 2011 2012 2013 22
Slide 23: Strong player in recruitment markets
Strong player in #1 in Finland (market size 30 MEUR) • monster.fi recruitment #1 in Estonia, Latvia, Lithuania (mkt 9 MEUR) markets • CV Online #4 in Poland (market 40 MEUR) • monsterpolska.pl #1 in Czech Republic (market 45 MEUR) • prace.cz, jobs.cz, monster.cz, profesia.cz #1 in Slovakia (market 9
Slide 24: Our success cases
LIVING INFORMATION
Slide 25: Attracting audiences through growth hacking
Attracting audiences through Multi-channel growth hacking content Johanna Suhonen / Kauppalehti
Slide 26: Growth hacking and community management are the new marketing
Growth hacking and community management are the new marketing • Developed first by tecnology start-ups. • A low-cost but innovating marketing technique. • Search engine optimisation, website analytics, content and viral marketing and A/B testing play a key role. • The goal of growth hacking in Kaupp
Slide 27: The new digital: Richer, Rigorous, Rapid
The new digital Richer Rigorous Rapid 27
Slide 28: Exploring new forms of advertising
Exploring new forms of advertising Marketing solutions Minna Mäkinen / Iltalehti
Slide 29: What is native advertising?
What is native advertising? THE NEW BUZZ-WORD • Advertising that gives the same organic experience as own content in the media. • Part of content marketing or vice versa • medium specific advertising • natural content that is not experienced as direct ad message. • However, it is always ”bought” adv
Slide 30: fiidi.o
fiidi.o koskaan katumaan 03.10. tos JAETUIMMAT x ) e 2ONSOROITL ALTO ry @ so pastast,jitaet tule koskaan katumaan Rakkaus kissoihin on ceraieees —Millainen pokerinpelaaja olet? Testaa! —»@ > asas ota traytnat enema ein C3.) Rakkaus kissoihin on universaalia e Pikkupéllét bongasivat Koskettava ruotsa
Slide 31: Average time of visit
AVERAGE TIME OF VISIT
Slide 32: What makes people share content in social media?
What makes people share content IN SOCIAL MEDIA? • Content related to a person’s identity • e.g. why is the life of the left-handed more difficult? Issues related to home place and hobbies • Content that appeals feelings • touching events, children, animals, great achievements • Content based on inf
Slide 33: Case: Rented media
Uuttal § hee IUTALEHTI.fi mis Blogit | Keskustelu | Pelt Case RENTED MEDIA ILTV Te Fiidi.fi ILAB YHTEISTYOSSA eli Tokkiik6 kodin tietotekniikka? Omaguru auttaa numerossa 0600 900500 ja paikan pail Tutustu tasta 4 ru pt Eiké dlypuhelimissa ‘Myvi herra ihminen’ =" tarvita virusturvaa? Hakkerivaite: Ra
Slide 34: @Telkku_com in Twitter
@Telkku_com in Twitter Digital services Heli Ruotsalainen / Alma Diverso
Slide 35: Social TV / 2nd Screen -megatrend made us try Twitter
Social TV / 2nd Screen -megatrend made us try Twitter A new symphatetic brand character gave us an opportunity to design a different and an untypical tone of voice. @heliruots 35 | @telkku_com
Slide 36: Living information
LIVING INFORMATION
Slide 37: Fan reaction has been overwhelmingly positive
Fan reaction has been overwhelmingly positive @heliruots 37 | @telkku_com
Slide 38: @heliruots | @telkku_com
Monica Jii Telkku_com sa kohtelit mua niin kauniisti juuri silloin, kun olin haavoittuvaisimmillani. En unohda kauniita sanojasi ikina. Siksi oot BFF Monica Jii Telkku_com on pitanyt kiittaa, mutta tassa hassakassa on jaanyt. Joten nyt kaunis kiitos sulle bestikseni <3 Sanoilla on valtava voima! Tel
Slide 39: A Brand can also be funny, witty and passionate
A Brand can also be funny, witty and passionate @heliruots 39 | @telkku_com
Slide 40: So, some numbers then…
So, some numbers then… Mention reach of Telkku.com in October 2014 > 1,2 M Traffic from Twitter to Telkku.com 10/2013 vs. 10/2014 > + 1 050 % @heliruots 40 | @telkku_com
Slide 41: Recruiting the best digital experts
Recruiting the best digital experts Resources and expertise Ari Palo / Alma Diverso
Slide 42: Slide 42
Slide 43: Slide 43
Slide 44: Alma Media is in rapid transition towards digital
Alma Media is in rapid transition towards digital Q3 32% 50% 40 50 30 60 20 80 10 90 0 100 44
Slide 45: Solid financial basis for growth
Solid financial basis for growth Juha Nuutinen, CFO
Slide 46: Long-term financial targets
Long-term financial targets Alma Media’s 2011 2012 2013 2014 2014 Target financial targets YTD Q3 level Digital business 16.3% 36.8% 8.4% 11.2% 9.4% > 15% growth Return on 26.1% 13.8% 10.0% 9.5% 12.0% > 15% Investment (ROI), % Dividend payout 103% 45% 50% n/a n/a > 50% ratio* * Includes capital repa
Slide 47: Development of shareholders' value
Development of shareholders’ value DIVIDEND, EPS AND OPERATING CASH FLOW PER SHARE DIVIDEND AND EFFECTIVE DIVIDEND YIELD 100 8.45 9 7.70 % 90 8 7.00 80 6.51 7 6.10 70 5.35 6 60 MEUR 5 50 3.34 4 40 2.20 3 30 2 20 10 1 0 0 2006 2007 2008 2009 2010 2011 2012 2013 YTD 1-9/2014: Earnings per share: 0.14
Slide 48: Acquisitions from 2006 to 2014
Acquisitions from 2006 to 2014 2006: Objektvision 2008: Rannikkoseutu Telkku.com 14 % Janakkalan Sanomat 1% 2010: Tyrvään Sanomat 85 % Kotikokki.net Suomenyritykset.fi 2012: LMC s.r.o Professia s.r.o CV-Online E-Kontakti.fi TAU Online d.o.o 2013: Lounais-Lappi 30 % 2014: Monster CZK 1% Monster HUN 6
Slide 49: Investment / M&A potential
Investment / M&A potential NET DEBT / EBITDA (2009 – Q3/2014) NET DEBT / EQUITY (GEARING), 2009 – Q3/2014 NET DEBT Q1/2012 – Q3/2014 Alma Media had a strong investment period during 2011-2013 120 (approx. MEUR 150). 100 104.1 97.6 During the year 2014 Alma Media has concentrated on 80 integrating th
Slide 50: Performance summary by segments
Performance summary by segments ALMA GROUP 2013, MEUR ALMA GROUP YTD 1-9/2014, MEUR REVENUE 300.2 REVENUE 223.0 EBITDA 37.5 (12.5 %) EBITDA 26.2 (11.7 %) EBIT 24.2 (8.0 %) EBIT 15.8 (7.2 %) Financial Media and Digital Consumer Services National Consumer Media Regional Media Business Services 31 news
Slide 51: Performance summary
Performance summary GROWTH IN DIGITAL BUSINESS REVENUE DEVELOPMENT AND DISTRIBUTION Growth in digital business 2008-2014 is based on organic growth and acquisitions. 51
Slide 52: Thank you!
Thank you!