Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Q2 2018 Earnings Presentation

24 slides from Sanoma Oyj's earnings presentation, July 2018

  1. Slide 1: Good performance in Q2 2018 supported by phasing of business in Learning

    2018 Half-Year Report: Good performance in Q2 2018 supported by phasing of business in Learning Susan Duinhoven, President & CEO Markus Holm, CFO & COO

  2. Slide 2: Highlights of Q2 2018

    Highlights of Q2 2018 ’ Net sales Operational EBIT Operational EPS Free cash flow YTD M€ 363 M€ 80 € 0.33 M€ -43 (2017: 359) (2017: 73) (2017: 0.29) (2017: -54)  Strong growth in Learning with orders shifting from Q1 in the Netherlands and from Q3 in Belgium and Finland  Divestment of the Belgian

  3. Slide 3: Operational EBIT improved due to growth in Learning

    Operational EBIT improved due to growth in Learning  Operational EBIT of Media Finland declined Q2 2018 Operational EBIT by SBU EUR million – Lower print advertising sales – Print and pay TV subscription sales 19 decreased Media Finland 22 – The festival and events business N.C.D. Production had a

  4. Slide 4: Overall advertising market declined by 3% in Finland in Q2 2018

    Overall advertising market declined by 3% in Finland in Q2 2018 Finnish measured media advertising markets Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Remarks on Q2 18 development Newspapers -13% -12% -10% -12% -12%  Easter included in Q2 17 figures  Election advertising included in 2017 Magazines -10% -7% -1%

  5. Slide 5: Media Finland: Performance supported by festival and events business

    Media Finland: Performance supported by festival and events business  Net sales stable at EUR 146 million (2017: 145) Operational EBIT – Advertising sales as well as print and pay TV EUR million subscription sales decreased – Number of digital subscriptions grew significantly driven 15.5 % by HS an

  6. Slide 6: Media Netherlands: Solid profitability

    Media Netherlands: Solid profitability  Net sales declined to EUR 108 million (2017: 117) Operational EBIT EUR million – Stable circulation sales – Advertising sales declined inline with market with a 17.8 % 18.0 % further impact due to the divestment of the comparison 16.4 % 15.5 % site Kieskeurig

  7. Slide 7: Learning: Strong quarter supported by phasing of business

    Learning: Strong quarter supported by phasing of business  Net sales grew to EUR 108 million (2017: 98) Operational EBIT driven by EUR million 18.8 % 18.3 % 18.7 % – Traditional spring orders shifting from Q1 received 17.5 % 16.7 % during Q2 in the Netherlands 15.6 % 56 – Certain orders received al

  8. Slide 8: Outlook for 2018

    Outlook for 2018 (unchanged) In 2018, Sanoma expects that the Group’s  Consolidated net sales adjusted for structural changes will be slightly below 2017  Operational EBIT margin will be around 14%. The outlook is based on an assumption of the consumer confidence and advertising markets in the Net

  9. Slide 9: Financials

    Financials eS Ses x

  10. Slide 10: Strong improvement in profitability due to Learning…

    Strong improvement in profitability due to Learning… Media + Acquired festival and events business Operational EBIT Q2 18 vs. Q2 17 by SBU Finland N.C.D. Production EUR million - Soft print advertising sales - Declining print subscriptions (magazines) 1 - Discontinuation of Liiga 80 Media + Lower fi

  11. Slide 11: …with phasing between quarters in 2018

    …with phasing between quarters in 2018  In Media Finland, more weight will be on H2 due to – Discontinuation of the loss-making Liiga contract – High marketing, development and TV programming costs in Q4 17 – NCD acquisition: Q3 the largest quarter due to seasonality – Positive one-off correction o

  12. Slide 12: Free cash flow (12mr) continuing on a good level

    Free cash flow (12mr) continuing on a good level  Free cash flow improved by Free cash flow EUR 10 million in H1 18 due to EUR million + Lower net financial items 150 – Higher taxes as a result of real estate sale of Ludviginkatu in 100 Helsinki in Q4 2017  Divestment of Belgian women’s 50 magazin

  13. Slide 13: Net debt substantially lower vs. end of Q2 2017

    Net debt substantially lower vs. end of Q2 2017  At the end of Q2 2018 Net debt EUR million – Net debt to adjusted EBITDA at 2.1 (2017: 3.6) 7 – Net debt EUR 473 million (2017: 847) 6 – Equity ratio 36.6% (2017: 28.8) 3.6 5  Net financial items EUR -6 million (2017: -5) in 4 Q2 18 and EUR -9 milli

  14. Slide 14: Financial reporting in 2018

    Financial reporting in 2018 24 October Q3 2018 Interim Report 14 2018 Half-Year Report

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Sanoma in 2017

    Sanoma in 2017 Learning Net sales 2017 EUR 318 million Poland Netherlands 45% Finland Belgium NET SALES 17.5% Sweden EUR 1,327 million 0 50 100 Media Finland NON-PRINT SALES Newspaper EUR 571 million 40% TV/Radio 44% Online & Mobile Magazines OPERATIONAL EBIT MARGIN 11.5% other 13.6% 0 100 200 300 M

  17. Slide 17: Group key figures 2017

    Group key figures 2017 Adjusted for the SBS divestment EUR million 2017 2016 EUR 2017 2016 Net sales 1,328.0 1,322.3 Operational EPS, continuing 0.71 0.46 Operational EBITDA 328.5 299.0 operations margin 24.7% 22.6% Operational EPS * 0.74 0.47 Operational EBIT 186.4 149.6 EPS, continuing operations

  18. Slide 18: Media Finland: Quarterly key figures

    Media Finland: Quarterly key figures EUR million Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Net sales 146.2 137.0 150.4 131.3 144.5 144.1 Operational EBITDA 37.9 35.8 35.3 35.5 42.1 42.9 Operational EBIT 18.6 13.1 9.8 14.2 22.4 19.0 margin 12.7% 9.5% 6.5% 10.8% 15.5% 13.2% EBIT 20.5 11.6 8.2 13.5 30.5 19.6

  19. Slide 19: Media Netherlands: Quarterly key figures

    Media Netherlands: Quarterly key figures Q1-Q2 2017 adjusted for the SBS divestment EUR million Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Net sales 108.4 95.8 116.9 103.9 116.9 101.9 Operational EBITDA 20.9 16.3 21.9 16.0 22.9 16.4 Operational EBIT 19.5 14.9 19.2 14.0 20.8 14.2 margin 18.0% 15.5% 16.4% 13

  20. Slide 20: Learning: Quarterly key figures

    Learning: Quarterly key figures EUR million Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Net sales 108.3 28.9 38.5 145.7 97.9 36.2 Operational EBITDA 54.3 -7.3 -7.2 66.1 41.8 -0.7 Operational EBIT 43.7 -18.0 -21.6 56.1 31.9 -10.9 margin 40.3% -62.2% -56.0% 38.5% 32.6% -30.0% EBIT 42.2 -18.4 -23.7 56.2 22.8 -

  21. Slide 21: Largest shareholders

    Largest shareholders Largest shareholders Holding by category 2.7 % 30 June 2018 Number of shares 18.6 % 1. Jane and Aatos Erkko Foundation 39,820,286 24.4% 13.4 % 2. Antti Herlin 19,506,800 11.9% (Holding Manutas Oy: 11.91%, personal: 0.02%) 4.0 % 3. Robin Langenskiöld 12,273,371 7.5% 4. Rafaela Se

  22. Slide 22: Analyst coverage

    Analyst coverage Carnegie Investment Bank Matti Riikonen +358 9 6187 1231 Danske Markets Equities Panu Laitinmäki +358 10 236 4867 Handelsbanken CM Rasmus Engberg +46 8 701 5116 Inderes Petri Aho +358 50 340 2986 Nordea Sami Sarkamies +358 9 165 59928 Pohjola Kimmo Stenvall +358 10 252 4561 SEB Ensk

  23. Slide 23: Disclaimer

    Disclaimer 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 Sanoma

  24. Slide 24: Please contact our Investor Relations:

    Please contact our Investor Relations: Kaisa Uurasmaa, Head of IR & CSR M +358 40 560 5601 E kaisa.uurasmaa@sanoma.com ir@sanoma.com www.sanoma.com

Sanoma — Q2 2018 Earnings Presentation on 6ix