Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Investor Day (May 2017)

14 slides from Sanoma Oyj's investor day presentation, May 4, 2017

  1. Slide 1: Improved financial flexibility

    Improved financial flexibility Markus Holm, CFO and COO of Sanoma Capital Markets Day 2017 1 4 May 2017 CMD 2017 | Markus Holm

  2. Slide 2: Sanoma Q1 2017: Continuous performance improvement

    Sanoma Q1 2017: Continuous performance improvement EUR million Q1/2017 Q1/2016 Q1 Operational EBIT EUR million Net sales 344 353 19* 2016 Organic growth -2.4% -0.1% 2017 11 9 Operational EBITDA** 82 73 7 % 24.0% 20.8% Operational EBIT 11 2 -2 -6 % 3.3% 0.5% -11 Operational EPS (EUR) 0.02 -0.04 -15 L

  3. Slide 3: Financial impacts of SBS divestment

    Capital loss related to SBS, Q1 and FY estimate Financial impacts of SBS divestment  Following the announcement, all assets and liabilities relating to SBS are classified as held for sale in accordance with IFRS5 resulting in a -287 non-cash capital loss for Sanoma -425 – Goodwill decreases to EUR

  4. Slide 4: Opportunities for growth in all SBUs

    Opportunities for growth in all SBUs Learning Media Finland Media BeNe • Growth s in line with • Leveraging unique • Growing profitability curriculum cross-media position for of top 10 print & online development growth brands • Leveraging advanced • Successful • Improved offering to digital assets t

  5. Slide 5: Continuous profitability improvement through cost innovation

    Reported operational fixed costs, EUR million Continuous profitability % of net sales improvement through 800 55 700 53 cost innovation 600 48% 51 49 500 47 400 44% 45 • Harmonizing, improving processes and 300 43 41 200 saving costs in businesses and functions, 100 39 37 for example in: 0 35 2015 2

  6. Slide 6: Significant debt reduction in recent years

    Net debt, EUR million Significant debt reduction 1 400 6x in recent years 1 200 100 Target 5x 1 000 <2.5 4x  The divestment of SBS will improve the 800 100 100 leverage ratio going forward 3x 1242 600  Net debt / adj. EBITDA in 2016 would have 1135 2x been 2.5x (reported 3.2x), equal to long 400 8

  7. Slide 7: Increasingly efficient funding structure

    Debt structure as of 31 March 2017, EUR million Increasingly efficient (Including SBS loans) funding structure Other; Term SBS loans; 25 MEUR  The main funding sources are commercial loan; 42 MEUR papers, bank facilities and the bond 50 MEUR  The proceeds of the SBS divestment of EUR 237 million w

  8. Slide 8: Improving Free Cash Flow and Dividends

    Improving Free Cash Flow and Dividends New dividend policy as of February 2016: an increasing dividend, equal to 40-60% of FCF 200 150 What to expect in 2017: 100  Net financial items around EUR 25 million 50 (2016: 37 )  Cash capex around 0 EUR 40 million (2016: 34) -50  Change in working capita

  9. Slide 9: Increasing profitability of Sanoma Group

    Increasing profitability of Sanoma Group Operational EBIT as % of net sales  Continuous profitability improvement through process and cost innovation 25 2015  Discontinuing unprofitable businesses and 20 2016 activities pro forma 2016 15 excl. SBS  Highly synergetic bolt-on acquisitions  Continu

  10. Slide 10: Outlook 2017 (unchanged)

    Outlook 2017 (unchanged): Sanoma expects that  Group’s consolidated net sales adjusted for structural changes, including the divestment of SBS, will be stable and  Operational EBIT margin will be above 10%.  The outlook is based on the assumption of the advertising markets development in the Neth

  11. Slide 11: Sanoma as an investment

    Sanoma as an investment: Strongholds – leading market positions Ensures competitiveness even in changing markets Stable net sales ’Build and Buy’ incl. highly synergetic bolt-on acquisitions Improved profitability Process and business improvements Strong cash flow Financial and strategic flexibility

  12. Slide 12: sSQqnomd

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  13. Slide 13: Sanoma – Largest Shareholders

    Sanoma – Largest Shareholders % of shares Jane and 30 April 2017 and votes Aatos Erkko 1. Jane and Aatos Erkko Foundation 24.46 Foundation 2. Antti Herlin Others 24.5% 11.49 46.7% (Holding Manutas Oy: 11.47%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Fo

  14. Slide 14: 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

Sanoma — Investor Day (May 2017) on 6ix