Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Non-Deal Roadshow (May 2014)
42 slides from Alma Media Oyj's roadshow presentation, May 6, 2014
Slide 1: Driving transformation in media
Driving transformation in media Alma Media roadshow in London Kai Telanne, President & CEO 6th May 2014
Slide 2: A traditional media company?
A traditional media company? Alma Media is investing in fast-growing and profitable digital media and services, with a European focus. At the same time the company is boosting the multi-channel user experience and improving the cost efficiency of its traditional printed newspaper business based in F
Slide 3: Increasingly digital, internationally growing media company
Increasingly digital, internationally growing media company Revenue 2013 Revenue 2013 by geography by source Digital media and services Other 28 % 14 % 300 MEUR Printed Finland media 86 % and other 72 % Inter- 13 15 18 36 41 national revenue 295 296 298 284 259 Revenue from Finland 2009 2010 2011 20
Slide 4: Alma Media's businesses
Alma Media’s businesses DIGITAL CONSUMER SERVICE Career services Housing and car marketplaces 300 meur Lifestyle services Group revenue 2013 9.0 % EBIT margin 2013 FINANCIAL MEDIA AND BUSINESS SERVICE REGIONAL 1965 Financial news media Personnel in 2013 Business information services MEDIA Content ma
Slide 5: Digital business is growing
Digital business is growing Digital business by segments Q1 2014 90 32,7 % 35% 3,5 % 14,2 % 80 28,2 % 30% 70 24,3 % 25% 60 56,9 % 25,4 % 50 18,0 % 20% MEUR 15,7 % 40 12,9 % 85 13,1 % 78 15% 30 57 10% 44 49 20 40 Regional Media National Consumer Media Financial Media and Business Services Digital Con
Slide 6: 4 businesses in transition to digital
4 businesses in transition to digital DIGITAL CONSUMER SERVICES Share of digital in business unit revenue Q1 / 2014 33 % Share of digital business in group revenue FINANCIAL MEDIA AND Q1 2014 BUSINESS SERVICES REGIONAL MEDIA NATIONAL CONSUMER MEDIA 6 June 6, 2014
Slide 7: Ownership and share facts
Ownership and share facts Shareholders by sector Largest shareholders 30.4.2014 1. Ilkka-Yhtymä Oyj 29.79 % 2. Mariatorp Oy 14.44 % 3. Kaleva Kustannus Oy 7.95 % General Government Nominee registered 4. Varma (pension fund) 7.06 % Finance Households 5. C.V.Åkerlund 4.53 % Corporations On shared acco
Slide 8: Market dynamics
Market dynamics LIVING INFORMATION
Slide 9: 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 10: Change in media advertising Q1/2011–Q1/2014
Change in media advertising Q1/2011–Q1/2014 40% Change-% 30% Q1/14 vs. Q1/13 News- 20% papers -10,8 10% Magazines -18,0 0% TV -3,8 -10% Radio +12,0 Internet +12,5 -20% Total -4,8 -30% Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % Source: TNS Media Intelligen
Slide 11: Almost all industries cut down on advertising
Almost all industries cut down on advertising Advertising by branch Q1 / 2014 Total market, change from Q1 2013 Advertising in Q1 14 MEUR -12,3 % Retail Retail 48 -5,8 % Motor v. Motor vehicles 25 -3,8 % Food & bev. Food & beverages 21 -0,3 % Houses Houses and premises 12 -2,3 % Tourism Tourism and
Slide 12: Advertising share of GDP at record low
Advertising share of GDP at record low 1 0,9 0,8 0,7 0,6 % *estimate 12 June 6, 2014
Slide 13: Structural change in media advertising
Structural change in media advertising MEUR 800 Newspapers Magazines 700 Printed catalogues 600 Television Online 500 Radio 400 Cinema Out-of-home 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 13 June 6, 2014
Slide 14: Strategy 2014 and beyond
Strategy 2014 and beyond
Slide 15: Key elements of Alma Media's strategy
Key elements of Alma Media’s strategy Increase digital advertising and Generate growth content revenue. from digital services. 1/3 2/3 Improve the user experience and cost efficiency of the printed newspaper business.
Slide 16: Evolution may not be enough.
Evolution may not be enough. Rapid changes in technology and consumer behaviour require reallocation of resources and focus on new products and services. We also need the courage to relinquish some things we have done before.
Slide 17: Key strategy elements 1/3
Key strategy elements 1/3 Growth from digital services • Develop international recruitment services network • Market leadership for domestic marketplaces • Develop business information services 17 6.6.2014
Slide 18: International investment and partnerships for digital growth
International investment and partnerships for digital growth 2013: Alma Media and Monster Worldwide decided to intensify their recruitment collaboration in Eastern Central Europe. • New countries on Alma Media’s map: Poland and Hungary • Monster becomes minority shareholder in Alma Career (manages a
Slide 19: Strong player in recruitment markets
Strong After a strong investment phase, player in Alma Media’s career service offering is strongly positioned in chosen recruitment markets: markets #1 in Finland Estonia, Latvia, Lithuania Czech Republic Slovenia Croatia Serbia and Bosnia #3 in Hungary #4 in Poland
Slide 20: Synergies
Strong player in recruitment markets Synergies • Skills transfer • Product and service portfolio • Software development • Client relations • Strong market presence
Slide 21: Key strategy elements 2/3
Key strategy elements 2/3 Increase digital advertising and content revenue • Increase digital content revenue through new subscription models • Increase online and mobile advertising through expanding the offering • Develop web television 21 6.6.2014
Slide 22: Continuous effort to increase domestic digital growth
Continuous effort to increase domestic digital growth 2013 success highlights: • Mobile apps for Kauppalehti, Iltalehti and Aamulehti • Mobile apps for Telkku.com and Etuovi.com • Kotikokki.net modernisations • Launch of Fiidi.fi service • Regional online content paywall experiments • Audience-targe
Slide 23: Key strategy elements 3/3
Key strategy elements 3/3 Secure vitality of print newspaper business • Improve quality and efficiencies in regional media through editorial office collaboration • New printing facility in use, external print jobs • Distribution optimisation and reorganisation 23 6.6.2014
Slide 24: Renewal to improve newspaper competitiveness
Renewal to improve newspaper competitiveness Major renewal projects at Aamulehti • New mobile service and Premium subscription model at turn of the year 2013–2014 • Tabloid format from April 1, 2014, at the same time renewed Aamulehti.fi expands online news offering and opens an extended news packag
Slide 25: Necessary replacement investment in printing competitiveness
Necessary replacement investment in printing competitiveness New printing facility in Tampere • After ramp-up, the facility is well up to speed, with 5 million copies printed per week. • In addition to Alma Media newspapers, the facility prints Hämeen Sanomat and several Talentum publications, among
Slide 26: We are building a round-the-clock media consumption experience
We are building a round-the-clock media consumption experience based on extensive analysis of our customers’ preferences and media usage.
Slide 27: Nobody has a certain prediction for the future
Nobody has a certain prediction for the future. Renewal requires plenty of experimenting.
Slide 28: Strategy implementation focus
Strategy implementation focus Multi-channel Marketing Resources and Digital services content solutions competencies We will build new competencies, seek efficiencies and accelerate growth in digital services and media.
Slide 29: 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 29
Slide 30: Long-term financial targets
Long-term financial targets Alma Media’s 2011 2012 2013 Target financial targets level Growth in digital 16.3% 36.8% 8.4% > 15% business Return on investment 26.1% 13.8% 10.1% > 15% ROI, % Dividend payout 103% 45% 50% > 50% ratio* • Including capital repayment to shareholders.
Slide 31: By the year 2020, 50% of revenue comes from digital
By the year 2020, 50% of Alma Media’s revenue comes from digital.
Slide 32: Growth and income value
Growth and income value Alma Media aims to allocate investments, repayment of debt and distribution of profit optimally from the company's and investors' point of view.
Slide 33: Key figures 2013 and Q1 2014
Key figures 2013 and Q1 2014
Slide 34: Revenue and operating profit 2009–2013
Revenue and operating profit 2009–2013 Revenue, MEUR Operating profit, MEUR IFRS IFRS -27,8% -6,2% 350 50 300 311,4 316,2 320,1 43,9 307,8 300,2 40 42,9 42,6 250 30 33,5 2,8 200 20 24,2 150 10 100 50 0 -2,2 -0,5 -1,0 0 -7,0 -10 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Kertaluonteiset Non-re
Slide 35: Revenue decline continued in first quarter 2014
Revenue decline continued in first quarter 2014 Revenue, MEUR Operating profit, MEUR IFRS IFRS -2,9% 90 -6,5% 12 -25,0% 80 10 -54,8% 70 74,9 76,3 77,3 0,0 71,7 72,7 8 4,9 60 7,8 6 50 6,4 5,5 4 4,6 40 0,7 2 30 2,5 20 0 0,0 10 -2 -2,0 0 -4 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 No
Slide 36: Long-term financial objectives
Long-term financial objectives Alma Media’s 2011 2012 2013 Q1/ Target financial targets 2014 level Growth in digital 16.3% 36.8% 8.4% 11,0 % > 15% business Return on 26.1% 13.8% 10.1% 5,8 % > 15% investment ROI, % Dividend payout 103% 45% 50% n/a > 50% ratio* * Including capital repayment to shareho
Slide 37: Cash flow from operations
Cash flow from operations 16,7 25,0 20,0 12,0 15,0 10,0 12,0 MEUR 16,7 16,7 5,0 0,0 -5,0 -10,0 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Slide 38: Interest-bearing debt
Interest-bearing debt Net debt Q2/2011-Q4/2013 Breakdown of net debt 120 Q1/2014 100 103,5 104,1 101,4 97,6 Financial leasing 74.0 80 82,1 Financing loans 10,0 60 Commercial 12.0 MEUR 40 papers 42,2 Cash and cash -13.9 20 equivalents 0 Total 82.1 -20 -40 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2
Slide 39: Key figures
Key figures IFRS Equity ratio, % Net gearing, % 40 140 35 37,3 120 127,1 30 30,4 100 25 80 87,9 20 60 15 40 10 5 20 0 0 Q1 13 Q1 14 Q1 13 Q1 14
Slide 40: Earnings per share and equity per share
Earnings per share and equity per share 0,06 1,2 0,05 1,03 1,04 0,05 1,0 0,04 0,33 0,34 0,8 0,03 0,02 0,05 0,6 0,02 0,01 0,4 0,01 0,70 0,70 0,01 0,2 0,00 0,00 -0,01 0,0 Q1 13 Q1 14 Q1 13 Q1 14 Non-recurring items Retained earnings EPS wo non-recurring items Restricted equity
Slide 41: Balance sheet
Balance sheet MEUR Q1 2014 Q1 2013 Intangibles and goodwill 114,9 118,0 Tangibles 84,8 85,6 Associated companies 25,5 31,7 Inventory 1,2 0,9 Receivables 34,5 37,2 Cash 13,9 15,7 Assets 274,7 289,0 Equity 93,3 79,8 Reserves-obligatory 4,1 0,4 Pension liabilities 2,6 2,8 Ib debt 95,9 117,0 Non-Ib debt
Slide 42: Thank you!
Thank you! LIVING INFORMATION