Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2009)
26 slides from Sanoma Oyj's investor day presentation, Oct 12, 2009
Slide 1: Sanoma News on the Bridge to the Future
Sanoma News on the Bridge to the Future Mikael Pentikäinen President and CEO, Sanoma News Sanoma Capital Markets Day 12 October 2009
Slide 2: Wrong conclusion!
Wrong conclusion! CMD 2009 / Mikael Pentikäinen 12.10.2009 2
Slide 3: Agenda
Agenda • Briefly on Sanoma News • The Change in the News Business • Key Themes for the Future CMD 2009 / Mikael Pentikäinen 12.10.2009 3
Slide 4: Briefly on Sanoma News
Briefly on Sanoma News $3 Sanoma
Slide 5: Sanoma News is in the driver's seat
Sanoma News is in the driver’s seat #1 News publisher in Finland – both in print and digital • Helsingin Sanomat is the largest daily newspaper in the Nordic region. – Helsingin Sanomat’s news site HS.fi has more than 1.2 million unique weekly visitors. • Ilta-Sanomat is Finland’s largest tabloid ne
Slide 6: Big in news but also in online marketplaces
Big in news but also in online marketplaces In addition to our flagship brand news sites, we have: • Marketplaces (i.e. online classified ads): –Oikotie.fi: Finland’s #2 in recruitment, #2 in real estate, #3 in cars –Keltainen Pörssi: C2C and generalist –Hintaseuranta.fi: Finland’s #1 price comparis
Slide 7: Strong position in the online ad sales
Strong position in the online ad sales Market leader in online display ad sales • Sanoma News’ online ad sales sells also Sanoma Magazines Finland’s online sites. • Together these sites have 2.45 million unique visitors a week, which is ~80% of the Finnish online population. • Our network has 2.5 bi
Slide 8: Sanoma News is profitable publisher
Sanoma News is profitable publisher However the first half of 2009 was challenging Net sales EBIT (excl. non-recurring items) 474.7 500 480.8 80 M€ 457.1 M€ 446.4 70.8 450 435.2 70 67.6 62.7 400 60 59.1 57.3 350 50 300 H1/08 250 40 214.8 H1/08 200 30 150 18.0 20 100 10 50 0 0 2004 2005 2006 2007 200
Slide 9: The Change in the News Business
The Change in the News Business
Slide 10: Two storms hit us simultaneously
Two storms hit us simultaneously • Digital convergence strikes at the bedrock of the news media business. • The financial crisis and the slow-down of the real economy slash all media spending. • Both storms offer also many opportunities. CMD 2009 / Mikael Pentikäinen 12.10.2009 10
Slide 11: The media continents continue to change
The media continents continue to change Internet is the main driver of the structural change Newspapers Magazines Television Internet Books Radio CMD 2009 / Mikael Pentikäinen 12.10.2009 11
Slide 12: Ad market development has been grim
Ad market development has been grim However, the decrease has not significantly accelerated during summer Advertising Advertisingsales sales% %change change(month) (month) 40 40 30 30 20 20 10 10 %% 00 -10 -10 -20 -20 -30 -30 /008 /008 /008 /008 /008 /008 /008 /008 /008 /008 /008 /008 /009 /009 /009
Slide 13: The big questions of today
The big questions of today 1. How long and deep will the current down-turn be? 2. What is the nature of the up-turn, when it comes? 3. How does the economic crisis affect media convergence? 4. To what extent will print revenues return when the economy recovers? 5. How to manage the transformation to
Slide 14: Key Themes for the Future
Key Themes for the Future $3 Sanoma
Slide 15: Excellent starting point: Sanoma News reach
Sanoma SanomaNews Newsreaches: reaches: Excellent starting point: --70% 70%of --92% ofall allFinnish Finnishpeople people More than ⅔ of all Finns regularly 92% of all people inUusimaa of all people in Uusimaaregion region --83% of all 20-29 year-old Finns 83% of all 20-29 year-old Finns use Sanoma
Slide 16: Another excellent starting point: readership remains stable
Another excellent starting point: Against the odds, readership remains rather stable KMT KMT readership readership KMT KMT H2-2008 / readership H2-2008 / readership Sanoma SanomaNews' News'titles titles H1-2009 H1-2009 2008 2008 Change-% Change-% Helsingin HelsinginSanomat Sanomat 965 965000 000 958
Slide 17: Our basis is a holistic view on media
Our basis is a holistic view on media ”Taking news to the new era” ”DIGITAL ”DIGITAL MEDIA” MEDIA” MUST-WIN Online Onlinemedia PRINTED BATTLES media advertising advertising (incl. (incl.search), MEDIA (…what we must succeed in…) B2B B2Band search), andtrans- trans- actional actional Market size in 2
Slide 18: Key strategic themes
Transformation: Key strategic themes HYBRID AD TOP CLASS CUSTOMER CARE FORMATS CROSS-MEDIA SALES TEAMS VERKKOVOIMAA IMPROVED TARGETING Win back 11/09 the 11/09 market LEADIND DISPLAY share! No AD NETWORK Trial OK OK return to CROSS-DATABASE DATA MINING Continuous product former development! ways! La
Slide 19: Transformation in media sales
Transformation in media sales • Crucial issues: mindset, products, pricing, 11/09 incentives, mgmt systems. All are under analysis 11/09 in the “New Start in Media Sales” initiative • Both print and online media sales under joint command OK • Print sales people taking more active role in Trial cross
Slide 20: Transformation in consumer sales
Transformation in consumer sales • New paid hybrid products including print and online (e.g. HS24) and different brands • Top-class and top-efficient customer service • New ways to earn from online and mobile content • New subscription system (SALS) making hybrids possible • Considering geographical
Slide 21: Transformation of the newsrooms
Transformation of the newsrooms • IS & HS: Editorial work flow reorganised and multi-channel news publishing managed through a centralised superdesk • Lehtimedia: multilocal (virtual) newsroom under construction • Vartti & Metro: a major part of the content UGC and crowd sourced • IPRs in “buy side”
Slide 22: Transformations of products – continuously
Transformations of products – continuously Print Online E.g. Ilta-Sanomat tabloid, weekend supplements IS Plus and NYT, Helsingin Sanomat, all Lehtimedia titles and local papers, free E.g. 1H10 Iltasanomat.fi, local sheet Vartti co-created with online-readers New hybrid news site concept ”OmaVartti”
Slide 23: Restructuring supports transformation
Restructuring supports transformation Our cost-efficiency measures have been successful • In order to compensate for the effect of the EUR -30 MILLION TARGET plummeting advertising sales on EBIT, EXPECTED TO BE ACHIEVED AND EXCEEDED! Sanoma News launched a ”Bridge over the recession” restructuring p
Slide 24: M&A's have also role in our transformation
M&A’s have also role in our transformation Three focus areas in M&A 1. Consolidation of the print media business – Natural route in the saturated newspaper and print markets in case opportunities arise 2. Expansive acquisitions in digital – New revenue streams 3. Divestments – Portfolio optimization
Slide 25: A time of opportunities...
A time of opportunities... "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." Winston Churchill CMD 2009 / Mikael Pentikäinen 12.10.2009 25
Slide 26: Taking News to the New Era.
Taking News to the New Era. mikael.pentikainen@sanoma.fi