Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Carnegie Media Seminar 2013
34 slides from Alma Media Oyj's conference presentation, Jun 5, 2013
Slide 1: Transforming the media business
Transforming the media business Kai Telanne, President & CEO, Alma Media Corporation Carnegie Media Seminar, Helsinki June 5, 2013
Slide 2: Contents
Contents • Alma Media in brief • Market dynamics and Alma Media • Key financials • Implementing our strategy Appendix: • Share and contact info & upcoming events • Alma Media – a digitally growing media company 2 4.6.2013
Slide 3: Alma Media in brief
Alma Media in brief
Slide 4: Alma Media is a dynamic media group focusing on digital services and publishing
Alma Media is a dynamic media group focusing on digital services and publishing.
Slide 5: Alma Media today - growing internationally
Alma Media today - growing internationally Net sales 2012, MEUR Other countries 320 Finland Personnel 2012 Other countries 1950 Finland
Slide 6: Growing increasingly digital
Growing increasingly digital Profesia* In 2012, Alma Tau-online* Media invested LMC* E-Kontakti in market-leading CV Online* recruitment portals 29% in the Baltic states, Czech Republic, Slovakia and Croatia. Kotikokki Alma Media also Telkku holds minority interests in Bosnian and Serbian portals. *
Slide 7: Alma Media's Reporting Segments
Alma Digital Consumer Services, Media’s revenue 2012 Reporting Segments MEUR 56.5 EBIT 13.0 % of revenue* Other operations (ext.) Newspapers, Kauppalehti Group, revenue 2012 Digital Kauppalehti revenue 2012 Consumer Services Group MEUR 206.6 Newspapers MEUR 56.9 EBIT 12.4 % of revenue* EBIT 10.1 % o
Slide 8: Market dynamics and Alma Media
Market dynamics and Alma Media
Slide 9: Advertising sales changes Q1/2010 – Q1/2013
Advertising sales changes Q1/2010 – Q1/2013 50% Change-% 40% 1-4/13 vs. 1-4/12 30% News- papers -17,2 20% 10% Magazines -16.1 0% TV -6.0 -10% Radio -14.0 -20% Internet 5.6 Total -11.3 -30% Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % Source: TNS Media Intel
Slide 10: Advertising declined in all industries
Advertising declined in all industries Total market; change from Q1/2012 Advertising in Q1/13 MEUR -8,7 % Retail Retail 53 -11,2 % Motor v. Motor vehicles 26 -15,8 % Food & bev. Food & beverages 22 -9,0 % Houses Houses and premises 12 -26,3 % Recru Recruiting 11 -4,4 % Tourism Tourism and traffic 11
Slide 11: Continued decline for three consecutive quarters
Continued decline for three consecutive quarters Total market; change from previous year Q3 2012 vs 2011 Q4 2012 vs 2011 Q1 2013 vs 2012 Retail -3,9 % Retail -4,2 % Retail -8,7 % Motor v. -9,1 % Motor v. -18,0 % Motor v. -11,2 % -8,4 % -5,7 % Food & bev. -15,8 % Food & bev. Food & bev. Houses 1,2 %
Slide 12: Digital channels gain market share
Digital channels gain market share 15% 10% Other 6,9 % Magazines 5% 10,8 % Digital 17,8 0% Radio 4,1 % % -5% TV 20,7 % -10% Newspapers 39,7 % -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 GDP of Finland, y-o-y change Adve
Slide 13: The dynamics of Alma Media's transformation
The dynamics of Alma Media’s transformation 100 20% Revenue Share of Change, Structural source sales 2012 FY11 - FY12 trend 80 15% Advertising 50.2 % + 3.9 % Stable 60 • Print • 30.5 % • - 12.2 % • Decreasing 10% • Digital • 19.3 % • + 43.4 % • Growing 40 5% Circulation 37.2 % - 5.5 % Stable to 20 d
Slide 14: Newspapers
Newspapers Operating profit, IFRS MEUR Newspaper segment basics and value creation Segment structure: Sales 2012 • Alma Regional Media Iltalehti business unit Alma Regional • Iltalehti Media business unit Total revenue 2012 (2011): 206.6 MEUR (218,3) Digital business 6 % Value creation drivers Main
Slide 15: Kauppalehti Group
Kauppalehti Group Segment basics and value creation Operating profit, IFRS MEUR Segment structure: Sales 2012 • Kauppalehti business media • Kauppalehti Kauppalehti Information Services business information Kauppalehti Information • Alma 360 content marketing services Services Alma360 • Baltic News
Slide 16: Digital Consumer Services
Digital Consumer Services Segment basics and value creation Operating profit, IFRS MEUR Segment structure: Sales 2012 • Alma Marketplaces Alma business unit Marketplaces • Alma Diverso Alma Diverso development Total revenue and business unit 2012 (2011): 56.5 MEUR (42.1) Digital business 100 % Value
Slide 17: Financials
Financials
Slide 18: Revenue and operating profit declined from comparison period
Revenue and operating profit declined from comparison period Revenue, MEUR Operating profit, MEUR IFRS -0,2% -7,7% IFRS -15,8% -35,5% 90 10 80 81,1 81,0 82,7 8 8,9 8,5 8,5 70 75,2 74,9 7,7 6 60 5,5 50 4 40 2 30 0 20 -0,9 0,0 10 -2 -2,5 -0,7 -2,9 0 -4 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q
Slide 19: Content and advertising revenue declined together with the fall of printed media
Content and advertising revenue declined together with the fall of printed media IFRS Content revenue, MEUR Advertising revenue, MEUR 1,0 4,0 -4,5% -6,3% 3,0 0,5 +3,8% -11,3% 2,0 0,0 1,0 0,0 -0,5 -1,0 -1,0 -2,0 -1,5 -3,0 -4,0 -2,0 -5,0 -2,5 -6,0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12
Slide 20: Newspapers Q1
Newspapers Q1 • Revenue declined by 12.3% to MEUR 45.6. Revenue and operating profit • Share of online business in revenue still low except for Iltalehti. MEUR & % • Advertising sales declined by 17.8% to Excluding non-recurring items MEUR 19.9 (24.2). 65,0 -6,8% -5,8% 30 % • Online advertising sale
Slide 21: Kauppalehti Group Q1
Kauppalehti Group Q1 • Revenue declined by 5.7% to MEUR 14.0. Revenue and operating profit, • Online business delivered 32.3% of total MEUR & % revenue. Excluding non-recurring items • Kauppalehti’s advertising sales declined +2,8% -5,7% by 13.5% to MEUR 3.9 (4.5). 17,0 30 % • Online advertising sal
Slide 22: Cash flow and investments
Cash flow and investments IFRS 20 10,0 5,0 3,8 15 16,3 0,1 14,4 0,0 -2,0 10 12,3 -5,0 5 -10,0 0 -15,0 MEUR MEUR -5 -20,0 -25,0 -10 -30,0 -15 -35,0 -38,3 -20 -22,2 -40,0 -25 -45,0 Q1 12 Q1 13 Q1 12 Q1 13 From operating activities Gross investments Before financing activities Proceeds from sales of as
Slide 23: Net debt
Net debt IFRS 120 100 101,4 80 60 62,3 MEUR 40 46,1 42,2 42,9 20 0,0 0 -20 -40 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
Slide 24: Key indicators
Key indicators IFRS Equity ratio, % Gearing, % 40 140 35 120 127,1 33,7 30 30,4 100 25 80 20 60 15 60,6 40 10 5 20 0 0 Q1 12 Q1 13 Q1 12 Q1 13
Slide 25: Outlook
Outlook April 26, 2013 The general uncertainty prevailing in the Group’s principal markets, as well as the shift in media consumption from print media to electronic channels, make it difficult to forecast the development of the advertising and circulation revenues. The share of digital services in t
Slide 26: Strategy going forward
Strategy going forward
Slide 27: The fundamentals of Alma Media
The fundamentals of Alma Media MISSION For individual freedom Sustainable and well-being. media Freedom and pluralism of journalism VALUES Team play Sustainable media Courage cultivates traditional journalistic values while integrating broader The most exciting provider of corporate responsibility i
Slide 28: The elements of the digital media storm
The elements of the digital media storm Digital Big data Video marketing Paid eCommerce Mobility content 28 4.6.2013
Slide 29: Alma Media Digital
Alma Maintain and build market leader position Capitalise on the number of visitors to Alma Media in chosen vertical marketplaces Media’s news sites (raising ARPU). Digital to support margins. Advertising sales Strategy C-to-C ads (media brands and network) E-trade commissions Value-adding services
Slide 30: Implementing strategy 2013
Implementing strategy 2013 DIGITAL AGILE DEVELOP GROWTH GROUP PUBLISHING Fostering Strategic agility. Multimedia access to news. organic growth Leadership skills. Securing cash flow from the in the service business. IT systems. publishing business. Integration of Utilising the new printing the acqui
Slide 31: Strategic progress spring 2013
Strategic progress spring 2013 examples PUBLISHING DIGITAL SERVICES GROUP Kauppalehti’s Windows Launch of Kauppalehti Moving to new premises in application and Business Information Helsinki Iltalehti’s iOS Services Procurement Managerial skills application Search and Map Search development pr
Slide 32: Dividend affected by strong investment phase
Dividend affected by strong investment phase Cash flow on normal levels (Q4 11 is a 30,0 120 Acquisitions deviation due to advance 100 of digital assets 25,0 subscription payments). 101,4 80 have increased 20,0 gearing to 127.1 % 15,0 60 62,3 MEUR MEUR 10,0 40 46,1 42,2 42,9 5,0 20 27,5 12,3 16,3 0,
Slide 33: Ownership and share facts
Ownership and share facts Shareholders by sector Largest shareholders General Government Nominee registered Finance Households Corporations On shared account Non-profit institutions Foreign shareholders
Slide 34: For further information please go to: www.almamedia.fi/investors
For further information please go to: www.almamedia.fi/investors Coming events for investors: - Q2 2013 results 19 July 2013