Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (2016)
26 slides from Alma Media Oyj's investor day presentation, 2016
Slide 1: Building the Media Platform of the Future
BUILDING THE MEDIA PLATFORM OF THE FUTURE Kai Telanne, President and CEO Alma Media Corporation
Slide 2: Investments in marketing communications at a very low level
Investments in marketing communications at a very low level Finnish Intensifying economy still in the global competition in doldrums the media sector Capital Markets Day 2016 2
Slide 3: Finland's lost decade
Finland’s lost decade GDP volume index, 2005=100, seasonal adjustment + Commission forecast 2016 125,0 Sweden 120,0 USA 115,0 EU Finland 110,0 105,0 100,0 95,0 90,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e Sources: Eurostat, European Commission, Confederation of Finnish Industrie
Slide 4: Sweden vs Finland: GDP, media advertising
SWEDEN FINLAND GDP MEDIA GDP ADVERTISING MEDIA ADVERTISING Capital Markets Day 2016 4
Slide 5: Half of Finnish digital advertising spending goes to global competitors
Half of Finnish digital advertising spending goes to global competitors Television 22% Other Outdoor 11% advertising Alma Media 4% Global competitors Magazines 7% Media advertising Digital volume 2015 25% Digital advertising EUR 1.2 EUR 286 billion million Other Newspapers (incl. free Sources: TNS A
Slide 6: Advertising sales change 3/2015 - 3/2016
Advertising sales change 3/2015 - 3/2016 20% 15% 10% 5% 0% -5% -10% -15% Advertising sales total, chg % Newspaper advertising, chg % Online advertising, chg % Source: TNS Media Intelligence Capital Markets Day 2016 6
Slide 7: There's also a brighter side
THERE’S ALSO A BRIGHTER SIDE Capital Markets Day 2016 7
Slide 8: GDP forecasts in Alma's operating areas
GDP forecasts in Alma’s operating areas GDP development and Commission forecasts of GDP growth in Alma’s operating countries in 2014–2017E Commission growth forecast in 2016 2014 2015E 2016E 2017E 5% 4,3 % 3,3 % 3,4 % 3,0 % 2,9 % 2,9 % 2,6 % 2,6 % 2,7 % 3% 2,4 % 2,4 % 2,2 % 2,4 % 2,6 % 2,5 % 2,1 % 1
Slide 9: The Alma transformation
THE ALMA TRANSFORMATION Capital Markets Day 2016 9
Slide 10: Alma's digital business has compensated for the decline in revenue from print media
Alma’s digital business has compensated for the decline in revenue from print media Alma Media’s revenue by category, MEUR 26 25 23 25 44 31 24 22 25 40 49 57 78 84 95 103 271 236 237 236 217 192 179 164 2008 2009 2010 2011 2012 2013 2014 2015 Print media Online media Services Capital Markets Day 20
Slide 11: MEUR 100 milestone exceeded in Alma's annual digital revenue
MEUR 100 milestone exceeded in Alma’s annual digital revenue 35.7% 36.4% 32.0% 28.1% 24.3% Digital revenue grew by 8.7% in 2015. 18.0% 15.7% 12.9% 13.1% 104 Q1 2016 digital revenue growth 95 78 84 was 30.7 %. 57 44 49 40 32 MEUR 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue from digital busin
Slide 12: Digital business generates more than 2/3 of Alma's operating profit
Digital business generates more than 2/3 of Alma’s operating profit 16,3 13,7 Group’s 7,7 7,1 operating profit by sector, MEUR 2014 2015 Operating profit/Print Operating profit/Digital Capital Markets Day 2016 12
Slide 13: Alma's business areas
ALMA’S National lifestyle Digital recruitment BUSINESS and news services. services and marketplaces. AREAS DIGITAL DIGITAL 39 % 100 % 44 59 134 118 Segment revenues in 2015, MEUR. Business media Alma Talent as pro and professional forma. services. Regional and local news DIGITAL business. 29 % DIGIT
Slide 14: The change in business mix: revenue
The change in business mix: revenue Distribution of sales 60% 50% 40% 30% 20% 10% 0% Alma Markets Alma Talent Alma News & Life Alma Regions Eliminations -10% 2013 2014 2015 2015 proforma incl. Talentum Capital Markets Day 2016 14
Slide 15: The change in business mix: EBITDA
The change in business mix: EBITDA Distribution of EBITDA ex. non-recurring items 60% 50% 40% 30% 20% 10% 0% Alma Markets Alma Talent Alma News & Life Alma Regions Other -10% -20% 2013 2014 2015 2015 proforma including Talentum Capital Markets Day 2016 15
Slide 16: Investments in digital business in Finland and abroad are producing good results
Investments in digital business in Finland, and especially abroad, are producing good results. Capital Markets Day 2016 16
Slide 17: International revenue has grown to play a significant role
International revenue has grown to play a significant role 10 10 32 37 37 45 300 304 286 260 252 235 2010 2011 2012 2013 2014 2015 Revenue, Finland Kotimaa Other countries Ulkomaat Non-allocated Kohdistamattomat MEUR Capital Markets Day 2016 17
Slide 18: International business also has a growing significance to profitability
International business also has a growing significance to profitability 1 7 10 13 15 56 56 42 41 29 25 -1 2010 2011 2012 2013 2014 2015 EBITDA, Finland Kotimaa Other countries Ulkomaat Non-allocated Kohdistamattomat MEUR Capital Markets Day 2016 18
Slide 19: Alma Media's path forward
ALMA MEDIA’S PATH FORWARD Capital Markets Day 2016 19
Slide 20: Alma Media's strategy
Alma Media’s strategy STRATEGIC TARGETS STRATEGIC FOCAL POINTS ORGANIC GROWTH ACQUISITIONS 1. Increasing owner value through revenue growth and improved profitability. II. NEW BUSINESS AND Konsernitoiminnot 2. Increasing revenue and MARKET AREAS market shares, particularly in digital media and servi
Slide 21: Four strategic themes
Four strategic themes Multichannel content Digital content income, web tv, mobile media, content packages Marketing solutions Programmatic buying, targeting, premium packages, consultative sales Service business Marketplaces, recruitment and other business services, print & delivery Resources Brand
Slide 22: Elements of strategy for growth and profitability
Elements of strategy for growth and profitability Alma Markets Support continued organic growth and strategic focus by targeted acquisitions. Build service extensions for Four strategic added value. themes: Alma Markets Alma Talent Alma Talent Multichannel content Alma News & Life Create synergies f
Slide 23: Supporting growth by digital acquisitions
Supporting growth by digital acquisitions CV Online Kotikokki.net E-Kontakti.fi Alkali JM-Tieto (Baltics) Gross Monster Acquisitions investment Tyrvään L.M.C. Profesia (Poland, into career Talentum Oyj Sanomat (Czech) (Slovakia) Hungary, services Czech) 72 MEUR 2010 2011 2012 2013 2014 2015 2016 Kai
Slide 24: The Talentum acquisition was our most significant business transaction in 2015
The Talentum acquisition was our most significant business transaction in 2015 Operations will be combined at two levels. Group functions Group functions Alma Markets Kauppalehti businesses Magazine Business Finland Magazine Business Sweden Alma News & Life Alma Regions Events Books and Legal Traini
Slide 25: Structural transformation and internationalisation to continue
The decline of print media Structural transformation revenue will continue, digital and internationalisation to business will continue to continue grow We will make further investments in the development of our employees Efficiency improvement The role of behavioural data measures for print media wi
Slide 26: Thank you – Questions?
THANK YOU – QUESTIONS? Capital Markets Day 2016 26