Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Investor Presentation (November 2016)

33 slides from Sanoma Oyj's investor presentation, November 2016

  1. Slide 1: Investor Presentation November 2016

    Investor Presentation November 2016

  2. Slide 2: Sanoma Group key figures and outlook

    Sanoma Group Key figures, EUR million 1–9/16 1–9/15 FY2015 Net sales 1,241.0 1,307.4 1,716.7 Organic growth, % +0.1% -3.7% -3.4% Operational EBIT 166.5 92.1 83.7 % of net sales 13.4% 7.0% 4.9% FTEs 5,269 6,650 6,116 New outlook for 2016: In 2016, Sanoma expects that the Group’s consolidated • Net sa

  3. Slide 3: Summary of Operating Performance

    Summary of Operating Performance Last 12 months* – Non-print sales: EUR 610 million in Media Finland and Media BeNe Three Strategic Business Units TV & Radio Media Media Learning Net sales EUR 350 million Finland BeNe Magazines Q4/2015-Q3/2016 Q4/2015-Q3/2016 Q4/2015-Q3/2016 Net sales EUR 480 millio

  4. Slide 4: Progress in Key Strategic Priorities

    Progress in Key Strategic Priorities Fulfil customer Utilise growth Accelerate cost Improve cash needs in selected and digital innovation conversion media brands transformation and and domains opportunities deleverage our in Learning business Growth from cross- Growth in Western Suunta in Finland, D

  5. Slide 5: Strong Brands, Great Content, Loyal Customers

    Strong Brands, Great Content, Loyal Customers TV/Radio News/ Magazines Learning Classifieds 5 November 2016 Investor Presentation

  6. Slide 6: Elements of Sanoma's Transformation

    Elements of Sanoma’s Transformation Tailoring to Digitalisation is UX and From content orientation to customers not a goal, it is a Customer customer and data requires way of serving Service are orientation: big cultural shift superior data from our journalistic heritage critical and analysis differ

  7. Slide 7: Q3 Result

    Q3 Result

  8. Slide 8: Q3 2016 Highlights

    Q3 2016 Highlights Profitability continued to improve  Operational EBIT improved to EUR 77.7m (62.4) – Strong quarter in Learning, EBIT in Western European markets +12% – Continued good development in the Finnish media business – Benefits from cost and process innovations  Net sales declined -4.4%

  9. Slide 9: Outlook revised

    YTD Q3 Operational EBIT Outlook revised EUR million based on improved operational performance 81 69 59 53 Sanoma Group Q3/16 Q3/15 40 EUR million Net sales 438.1 458.3 Organic growth -1.5% -0.4% Operational EBIT 77.7 62.4 -3 -13 -27 Media Media BeNe Learning Other Finland 1-9 / 2015 1-9 / 2016 9 Nov

  10. Slide 10: Learning – YTD Q3

    Learning – YTD Q3 Improved results in Western Europe  Improved results in Western European markets – Revenue growth in first nine months +6%, operational EBIT up +12% (De Boeck included as of July) – New curriculum in Finland supporting revenue growth  Strong development in digital footprint conti

  11. Slide 11: Media Advertising Markets

    Media Advertising Markets Slight Improvement in Finland Netherlands FY/15 Q1/16 Q2/16 Q3/16 1-9/16 Magazines -13% -8% -7% -9% -8% TV +1% +6% -2% -6% -1% Online* +8% +10% +14% +8% +11% Total market* +1% +4% +4% +1% +3% Finland FY/15 Q1/16 Q2/16 Q3/16 1-9/16 Newspapers -8% -6% -5% -3% -5% Magazines -1

  12. Slide 12: Media BeNe – YTD Q3

    Events in January-September: Media BeNe – YTD Q3 Established events all showing growth, two new events launched Benefits from cross-media brands 2015: 2016:  Dutch Print & Online continues on positive track 190 000 270 000 – Growth in digital and e-commerce visitors +45% – Events portfolio supporti

  13. Slide 13: Media Finland – Q3

    Nelonen TV viewing share Media Finland – Q3 Commercial TV (10-44 years) Good transformation development combined 45% with growth in advertising 40% 2016 35%  Continued market share gains in a 2015 30% slightly positive advertising market 25% – Solid start for the fall season in TV, 20% Q3 viewing s

  14. Slide 14: Income Statement

    Income Statement EUR million 7–9/2016 7–9/2015 1–9/2016 1–9/2015 1–12/2015 1–12/2014 Net sales 438.1 458.3 1,241.0 1,307.4 1,716.7 1,901.6 Operational EBITDA 139.3 125.4 365.7 300.6 389.7 392.0 of net sales 31.8% 27.4% 29.5% 23.0% 22.7% 20.6% Amortisations related to TV programme rights -29.9 -32.4

  15. Slide 15: Operational EBIT Development

    Operational EBIT Development Q3/2016 EUR million Q3/2016 Q3/2015 Media BeNe: + Cost efficiency - Lower TV viewing time in the Netherlands Group 77.7 62.4 - Lower TV advertising market share due to Media BeNe 21.8 20.1 the Olympics - Divestments of non-core operations Media Finland 10.2 2.0 Learning

  16. Slide 16: Free Cash Flow

    Free Cash Flow Cash flow from operations less cash CAPEX Operational free cash flow EUR million 7–9/2016 7–9/2015 1–9/2016 1–9/2015 1–12/2015 1–9/2016 1–9/2015 1–12/2015 Operational EBITDA 139.3 125.4 365.7 300.6 389.7 365.7 300.6 389.7 TV programme costs -61.0 -60.5 -145.2 -151.5 -197.6 -145.2 -151

  17. Slide 17: Capital Structure 30 September 2016

    Key figures Capital Structure 30 September 2016 1000 950 7 930 900 852 855 Net debt: EUR 766 million (Q3 2015: 852) 825 845 823 6 802 801  Net debt / EBITDA* adjusted 3.3 times (6.1) 800 766 – *EBITDA adjusted: 12-month rolling operational EBITDA, 700 5 where acquired operations are included and di

  18. Slide 18: Three Strategic Business Units

    Three Strategic Business Units

  19. Slide 19: Media businesses across countries

    Sanoma after 2015: Media 3 businesses across 5 countries Finland Net sales, 2015 EBIT% EUR 570 million Learning Pia Kalsta Media Media BeNe BeNe Net sales, 2015 EUR 830 million Peter de Mönnink Media Finland Learning Net sales, 2015 EBIT € EUR 280 million John Martin = net sales 19

  20. Slide 20: Strong Media Portfolio in Belgium & the Netherlands

    Strong Media Portfolio in Belgium & the Netherlands Cross-media brands the key differentiator Media BeNe: Sales by type, 2015 Strong reach in TV, magazines and online EUR million, % of total sales Netherlands: Content + Digital Media 71% monthly reach in total TV 227 27% 17 >100 9 population magazin

  21. Slide 21: Media Finland – Unique Reach into Population

    Media Finland – Unique Reach into Population Strong customer connection across media groups Strong customer connection Unique cross-media position #1 in daily newspapers 2 #1 in tabloids Reaching 1 million 12,000 newspapers 97 % paying B2B Finns weekly customers customers 4 #1 TV network FTA channel

  22. Slide 22: Learning – Leading Position in 5 European Countries

    Learning – Leading Position in 5 European Countries Unique cross-country shared tech platform: 50% of net sales has a digital component Mature Markets Small Markets Poland Financials EUR million  Malmberg  Van In (Belgium) to  Nowa Era in strongly Sales 2015 (Netherlands) winning grow through new

  23. Slide 23: Appendix

    Appendix

  24. Slide 24: Consumer Confidence

    Consumer Confidence 30 18.1 20 10 0 9.6 -10 -20 -30 -40 Jul Jul Mar May Nov Mar May Jul Nov Mar May Jul Nov Mar May Sep Sep Sep Sep Jan Jan Jan Jan 2013 2014 2015 2016 Netherlands Finland Source: Eurostat 24 November 2016 Investor Presentation

  25. Slide 25: TV – Net Sales and EBIT Seasonality

    TV – Net Sales and EBIT Seasonality 2010–2015 average for Dutch and Finnish TV* Net sales split Operational EBIT 5% 22% 29% 30% 44% 29% 20% 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortisation) and Nelonen Media Finland. 25 November 2016 Investor Presentation

  26. Slide 26: Magazines – Net Sales and EBIT Seasonality

    Magazines – Net Sales and EBIT Seasonality 2010–2015 average for Dutch and Finnish Magazines* Net sales split Operational EBIT 19% 23% 27% 29% 29% 26% 24% 23% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes Dutch and Finnish operations, excluding TV guides. 2010-2012 not restated with IFRS 11 ‘Joint Arrangements’

  27. Slide 27: Newspapers – Net Sales and EBIT Seasonality

    Newspapers – Net Sales and EBIT Seasonality 2010–2015 average for Newspapers (Finland) incl. digital business Net sales split Operational EBIT 25% 22% 26% 34% 16% 24% 25% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 27 November 2016 Investor Presentation

  28. Slide 28: Learning – Net Sales and EBIT Seasonality

    Learning – Net Sales and EBIT Seasonality 2010–2015 average for Learning Net sales split Operational EBIT split in relative terms 11% 13% 41% 35% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 28 November 2016 Investor Presentation

  29. Slide 29: Sanoma – Largest Shareholders

    Sanoma – Largest Shareholders % of shares 31 October 2016 and votes 1. Jane and Aatos Erkko Foundation 24.46 24.5% 2. Antti Herlin 11.49 (Holding Manutas Oy: 11.47%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 46.7% 5. Helsingin Sanomat Foundation 3.50 6. Ilmarinen Mutual Pen

  30. Slide 30: Analyst Coverage

    Analyst Coverage Carnegie Handelsbanken Nordea Investment Bank Capital Markets Sami Sarkamies Matti Riikonen Rasmus Engberg tel. +358 9 165 59928 tel. +358 9 6187 1231 tel. +46 8 701 5116 Nordea.com/markets Carnegie.fi Handelsbanken.com/ capitalmarkets Pohjola Danske Markets Equities Kimmo Stenvall

  31. Slide 31: Sanoma's Investor Relations

    Sanoma’s Investor Relations Ms Anna Tuominen tel. +358 40 584 6944 anna.tuominen@sanoma.com 31 November 2016 Investor Presentation

  32. Slide 32: 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

  33. Slide 33: sqnomd

    sqnomd

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