Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (May 2017)
27 slides from Sanoma Oyj's investor day presentation, May 4, 2017
Slide 1: Growing profitable cross-media offering
Growing profitable cross-media offering Pia Kalsta, CEO of Sanoma Media Finland Capital Markets Day 2017
Slide 2: Improving profitability in Media Finland
Improving profitability in Media Finland Key figures Composition of net sales 2016 Other* EUR million 2016 2015 Net sales 581 573 Advertising sales Organic growth 0.7% -4.1% Non-print Operational EBITDA 143 117 sales 42% (38%) % 24.7% 20.4% Operational EBIT 50 13 Subscription sales % 8.5% 2.3% Singl
Slide 3: SMF has strong brands in all media platforms
SMF has strong brands in all media platforms Engaging consumer oriented content #1 #2 #1 #1 #1/2 in news in television in audio in Magazines in classifieds 50 % 20 % 5% 20 % 5% 3 4 May 2017 CMD 2017 | Pia Kalsta
Slide 4: Media brand portfolio enables unique offering for advertisers
Media brand portfolio enables unique offering for advertisers: Reach: every week we reach 97% of Finns Data: we use data to build targeted and effective advertising Insights: we provide right solutions for all advertising needs Sanoma-agreement: flexible partnership and benefits for key cust
Slide 5: People use both offline and online media
We are in hybrid era: People use both offline and online media Total media Over one third Personal media Willingness to consumption in of all media diets: demand pay for media growth – growth of consumption is for shared is growing online mobile – people experiences, on top of offline use both onlin
Slide 6: Our hybrid strategy
Vision: The most successful and significant cross media company in Finland Our hybrid strategy Relevant content and experiences Apt offering and proficient Fulfilling customer needs services for consumers Trusted partner Being competitive for advertisers Interesting work for the media talents Innova
Slide 7: Consumers setting the pace of transformation
Customer centric approach to media transformation in Finland Consumers setting the pace of transformation Pure play print/ linear Pure play digital/non-linear Classifieds Fast news & topic-of-the day News & feature media Television Radio Magazines 7 4 May 2017 CMD 2017 | Pia Kalsta
Slide 8: Fulfilling customer needs: case Helsingin Sanomat
Fulfilling customer needs: case Helsingin Sanomat
Slide 9: Growing digital subscriptions in a customer centric way
Growing digital subscriptions in a customer centric way FOR SUBSCRIBERS ONLY Offering adapted to customer needs: Understanding what readers are ready to focus on adding digital elements pay for in digital ”Diamonds” to help create metrics and HS digital + print every day HS digital + print on week
Slide 10: Data and analytics to boost the whole sales funnel
Data and analytics to boost the whole sales funnel 58 % of HS customers pay for digital content FOR SUBSCRIBERS ONLY 400000 350000 300000 Q1 2016 vs Q1 2017: 250000 72% increase in the number of existing 200000 subscribers using services at least on 150000 3 days a week 100000 12,000 new trials
Slide 11: Be competitive: case Radio and TV
Be competitive : case Radio and TV
Slide 12: Building entertainment market position
Building entertainment market position Radio Television 60 60 50 40 40 30 Strong brands 20 10 20 Local content 0 2011 2012 2013 2014 2015 2016 0 2011 2012 2013 2014 2015 2016 The biggest stars NM listening 25-44 yrs Bauer Media NM viewing 10-44 yrs DNF MTV FOX The best formats 40% 35% 40% 35% 30% 30
Slide 13: TV and radio strengthening each other
We have a unique position in Finnish entertainment business TV and radio strengthening each other Bigger content phenomena Growing talent into stars New business potential 13 4 May 2017 CMD 2017 | Pia Kalsta
Slide 14: Discontinuing Liiga TV agreement allows focus and resources
Discontinuing Liiga TV agreement allows focus and resources to more profitable TV and online video development Sanoma has had exclusive rights to broadcast Finnish ice hockey championship league from 2013 The strategic decision was made to discontinue agreement after the 2017–2018 season Focus
Slide 15: TV market in Finland: Room to balance the decline in viewing time
TV market in Finland: Room to balance the decline in viewing time 25 Linear TV CPM1 (EUR, 2015, estimate) 222 213 20 17 173 16 15 15 14 Ø 14 12 10 9 5 5 5 0 1. After discounts, after agency fees, not corrected for Purchasing Power Parity, before other service agreements as this information is not co
Slide 16: Innovation at every level: Case Earlybird
Innovation at every level: Case Earlybird
Slide 17: Entrepreneur-based model to reduce distribution costs and improve service levels
Entrepreneur-based model to reduce distribution costs and improve service levels Questioning the traditional operating models and innovating new ways of working Sanoma created a pilot to test an entrepreneur based distribution network First regions launched in 2016 and expanded in 2017 Cost
Slide 18: How to grow in media in Finland?
How to grow in media in Finland?
Slide 19: Growth from increasing focus on SME advertising sales
Utilizing all growth opportunities Growth from increasing focus on SME advertising sales Solution sales for SME sales In March 2017 we increased our share in larger companies Mobiilimarkkinointi Routa Market size Market size • Very good track record in SME productization and 1,000 companies 280,000
Slide 20: Growth in B2C sales from Customer Lifecycle Management
Growth in B2C sales from Customer Lifecycle Management Increasing share of wallet and mitigating churn Awareness Conversion Onboarding Engagement Growth Retention Help customer Activate Keep customer Bring new to discover passive engaged with customers to interesting customers to Convert casual the
Slide 21: Growth in profitability: Suunta project mode
Growth in profitability: Suunta project mode More than 100 projects Progress in 4 different areas Commercial Content Transforming company Sales transformation Editorial co-operation further Customer service Savings in content • Process and tool transformation creation and purchase development • Digi
Slide 22: Where to grow: potential acquisitions close to core
Where to grow: potential acquisitions close to core Bolt-on acquisitions close to core Growing business profitable Consolidation within cross media industry offering 22 4 May 2017 CMD 2017 | Pia Kalsta
Slide 23: Summary
Summary
Slide 24: Key strengths
Key strengths Solid track record on digital transformation, now also building efficiency Focus on engaging consumers Unique offering for advertisers Cross media power
Slide 25: Our hybrid strategy
Vision: The most successful and significant cross media company in Finland Our hybrid strategy Fulfilling customer needs Being competitive Innovation at every level 25 4 May 2017 CMD 2017 | Pia Kalsta
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Slide 27: Important Notice
Important Notice The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of