Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Investor Presentation (November 2014)

45 slides from Sanoma Oyj's investor presentation, November 2014

  1. Slide 1: Sanoma Corporate Presentation

    Sanoma Corporate Presentation November 2014

  2. Slide 2: Sanoma in brief

    Sanoma in brief ERMA] setthe world

  3. Slide 3: Market leader in consumer media

    Market leader in consumer media Finland Netherlands Sanoma Sanoma Yle De Persgroep NL Alma Media Telegraaf Media MTV #1 Wegener #1 TS-Yhtymä RTL NL Keskisuomalainen Audax Otavamedia STER EUR million 0 200 400 600 800 EUR million 0 200 400 600 800 #1 in newspapers #1 in consumer magazines #1 in magaz

  4. Slide 4: Market leader in learning

    Market leader in learning Finland Sweden Netherlands Market position: Market position: Market position: #1 #2 #2 Net sales: Net sales: Net sales: ~ EUR 55 million ~ EUR 30 million ~ EUR 95 million Belgium Poland Global market Market position: Market position: Market position: a #1 #1 leading player

  5. Slide 5: Balance sheet tune-up

    Balance sheet tune-up Divested operations and properties Divestments total above EUR 300 million in cash Other operations Press distribution Lehtipiste Properties Sale and leaseback Media of Sanoma House operations and Sanomala Czech TV operations Republic Media and learning Belgium operations Hunga

  6. Slide 6: Four consumer media platforms

    Summary of operating performance Last 12 months* – New media sales: EUR 530 million in Media Finland and Media Netherlands Three Strategic Business Units Media Finland Media Netherlands Learning Other** TV & radio incl. digital Media Belgium Net sales EUR 350 million Four consumer media platforms Me

  7. Slide 7: Sanoma's strategy

    Sanoma’s strategy ERMA] setthe world

  8. Slide 8: Sanoma's strategy

    Sanoma’s strategy Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth Renewal of products and services Growth 2016 Profitability & balance sheet Cos

  9. Slide 9: Key elements of Sanoma's strategy

    Key elements of Sanoma’s strategy Vision GET THE WORLD Strategic Win in two #1 consumer media company #1 learning company objectives segments in the Netherlands and Finland in all operating markets Lead and  Digitalise core brands to maintain #1 reach and  Expand from textbooks to services and sol

  10. Slide 10: Sanoma Redesign – strategic update

    Sanoma Redesign – strategic update Strategic #1 consumer media company in the Netherlands and Finland objectives #1 learning company in all operating markets Growth –  NL: SBS viewing share improving. “Lead and  NL: Focus titles performing well. grow strategic  FI: Reach growing in Helsingin Sano

  11. Slide 11: Sanoma in 2016

    Sanoma in 2016  Smaller and more focused  Strong growth in digital media and new services  Return to organic growth  Better profitability  Healthier balance sheet 11

  12. Slide 12: Q3 2014 Interim Report

    Q3 2014 Interim Report

  13. Slide 13: Good quarter in Finland and Learning

    Good quarter in Finland and Learning Q3 2014 – new media sales grew by 6.7%  Organic growth -3.3%  Finnish TV and radio had a good quarter, market share gains in multiple categories in Finland  Learning solid adjusted for divestments, supported by timing shifts  Dutch magazines portfolio rationa

  14. Slide 14: Already 40% of net sales are new media in Consumer Media

    Already 40% of net sales are new media in Consumer Media  New media on steady growth path New media sales EUR 533 million in the Netherlands and Finland (rolling 12 months)  New media sales grew by 6.7% in Q3 – In the Netherlands already 49% of sales are new media (rolling 12 months) – Strong grow

  15. Slide 15: Market environment remains challenging

    Market environment remains challenging  TV advertising slowed down in the Netherlands Advertising market by type after 7% increase in H1 2014 48% 32% 31% 31% 29%  Finnish advertising market remained sluggish 15% 8% for print but TV was positive and online as well as 6% radio grew very well Print T

  16. Slide 16: A few highlights of Q3

    = A few highlights of Q3

  17. Slide 17: Netherlands – SBS to launch new channel

    Netherlands – SBS to launch new channel in January 2015  TV advertising market grew 2% in Q3 after 7% growth in Prime-time share of viewing in 20-54 target group H1 2014 (after World Cup) – Q4 expectation negative for advertising market 20.5 20.9  SBS’ own new VOD platform KIJK launched successful

  18. Slide 18: Netherlands – Focus titles performing well

    Netherlands – Focus titles performing well  Rationalisation of magazine portfolio concluded – Initially 32 titles under review – 23 titles sold, total net sales around EUR 50 million in 2013 – Leading to improved profitability  Focus titles have performed a lot better than titles sold  21 focus b

  19. Slide 19: Finland – success of Nelonen Media supports market share development

    Finland – success of Nelonen Media supports strong market share development, new Hero channel to be launched Nelonen TV advertising market share 32.9 30.8 Vain elämää breaking all records:  First episode all-time most viewed programme on Nelonen: average of 1,115,000 viewers  350,000 online views

  20. Slide 20: Finland – Sanoma network surpassed Google in unique visitors

    Finland – Sanoma network surpassed Google in unique visitors Online + print reach Top 20 online properties in Finland (thousand visitors/readers per week) KMT spring 2014 (thousand unique visitors per month) Sanoma Group 3393 3104 2846 2961 Google sites 3361 2696 Alma media 3298 Microsoft sites 2814

  21. Slide 21: Learning – Digital products help to capture market share and revenue

    Learning – Digital products help to capture market share and revenue Selected examples of digital products Bingel (Belgium) Belgium (Van In) Primary education, market share Sales growth in  Storified digital exercise module for all subjects in primary Learning Belgium education in Flanders, Belgium

  22. Slide 22: Financials

    Financials ERM aReMiKe] get the world

  23. Slide 23: Income Statement

    Income Statement Restated* Restated* Restated* EUR million 7–9/2014 7–9/2013 1–9/2014 1–9/2013 1–12/2013 Net sales 477.8 537.3 1,449.1 1,566.1 2,083.5 EBITDA excl. non-recurring items 119.3 132.4 318.2 337.5 436.6 of net sales 25.0% 24.6% 22.0% 21.6% 21.0% Amortisations related to TV programme right

  24. Slide 24: Net sales development – Q3 2014

    Net sales development – Q3 2014 Q3 2014 EUR million 7–9/2014 7–9/2013 7–9/2014 EUR million EUR million organic growth, % Group 477.8 537.3 -3.3 537.3 -13.4 -9.5 -10.0 Media -26.6 146.6 160.0 -3.7 477.8 Netherlands Media Finland 148.0 157.5 -5.5 Learning 113.0 123.0 +0.6 Other & elim. 70.2 96.8 -3.6

  25. Slide 25: EBIT excl. non-recurring items development – Q3 2014

    EBIT excl. non-recurring items development – Q3 2014 Q3 2014 EUR million EUR million 7–9/2014 7–9/2013 76.9 -10.9 Group 62.1 76.9 Media Netherlands 10.8 21.7 -1.4 -5.2 +2.8 62.1 Media Finland 9.9 11.4 Learning 44.4 49.6 Other & elim. -3.0 -5.8 Media + Cost efficiency Netherlands: - Print sales, part

  26. Slide 26: Free cash flow

    Free cash flow Cash flow from operations less cash CAPEX Restated* Restated* Restated* EUR million 7–9/2014 7–9/2013 1–9/2014 1–9/2013 1–12/2013 EBITDA excl. non-recurring items 119.3 132.4 318.2 337.5 436.6 TV programme costs -51.5 -48.8 -137.7 -136.7 -186.4 Prepublication costs -7.2 -9.8 -21.5 -24

  27. Slide 27: Capital structure – balance sheet strengthening

    Capital structure – balance sheet strengthening 30 September 2014  Net debt: EUR 825 million (Q3 2013: 1,283) Net debt / EBITDA adjusted 4,7 4,3 4,1 – Net debt / EBITDA adjusted 4.1 times <3.5 3,6  EBITDA adjusted: 12-month rolling EBITDA excl. non- 2,8 2,5 recurring items, where acquired operatio

  28. Slide 28: Case: Russia

    Case: Russia  Russia restricts foreign ownership of media  Sanoma has three businesses in Russia – United Press (ownership 100%), publishes e.g. Men’s Health, National Geographic – Fashion Press (50%), publishes e.g. Cosmopolitan, Esquire – Vedomosti (33%), publishes financial newspaper Vedomosti

  29. Slide 29: Cost savings taking major leaps forward

    Cost savings taking major leaps forward EUR 100 million Group-wide cost savings programme  EUR 100 million cost savings programme on track  Savings of around EUR 14 million in Q3 2014  Annual run-rate for savings around EUR 61 million  Savings derived from several areas – Structural changes – Re

  30. Slide 30: Group outlook for 2014 and mid-term (unchanged)

    Group outlook for 2014 and mid-term (unchanged) 2013 actuals Mid-term Main drivers for the 2014 EBIT outlook (IFRS 11 outlook + EUR 100 million gross cost savings programme, will realise Outlook restated) 2014 outlook (2016) partly in 2014 Net sales EUR 2,083.5 ’Decline ’Return to - Underlying deve

  31. Slide 31: Appendix 1

    Appendix 1 ERMA] setthe world

  32. Slide 32: Net sales split – Last 12 months

    Net sales split – Last 12 months Net sales: EUR 1,966 million | EBIT excl. nri: EUR 137 million Media operations in total Learning Netherlands and Finland 83% of net sales Diversified portfolio with five key markets 5% Netherlands 9% 11% Poland Netherlands 12% 33% 42% Finland Finland 17% Belgium Bel

  33. Slide 33: Media Netherlands

    Media Netherlands Key figures* EUR million 7–9/2014 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 146.6 180.0 146.0 685.8 194.1 160.0 179.6 152.2 Digital 64.6 82.5 64.0 291.0 88.2 64.8 76.5 61.6 Online & mobile 17.1 20.0 18.7 76.9 24.3 17.4 17.7 17.4 TV 47.5 62.5 45.3 214

  34. Slide 34: Media Finland

    Media Finland Key figures* EUR million 7–9/2014 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 148.0 164.6 159.0 675.4 179.0 157.5 170.7 168.2 Digital 43.5 53.4 48.6 185.9 54.5 37.5 51.7 42.2 Online & mobile 18.3 22.1 21.3 74.7 21.7 15.8 20.5 16.7 TV & radio 25.1 31.4 27.3

  35. Slide 35: Sanoma Learning

    Sanoma Learning Key figures EUR million 7–9/2014 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 113.0 106.9 41.2 304.6 32.4 123.0 103.5 45.7 Netherlands 24.6 40.7 24.5 95.3 7.4 25.0 36.5 26.3 Poland 51.1 17.8 5.2 83.8 12.8 46.7 18.1 6.2 Finland 10.6 28.8 4.8 53.5 5.6 13.9

  36. Slide 36: TV – net sales and EBIT seasonality

    TV – net sales and EBIT seasonality 2010–2013 average for Dutch and Finnish TV* Net sales split EBIT** split 8% 22% 29% 30% 43% 29% 20% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. 36 November 2014 Corp

  37. Slide 37: Magazines – net sales and EBIT seasonality

    Magazines – net sales and EBIT seasonality 2010–2013 average for Dutch and Finnish Magazines* Net sales split EBIT** split 18% 23% 27% 29% 28% 26% 24% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes Dutch and Finnish operations, excluding TV guides. 2010-2012 not restated with IFRS 11 ‘Joint Arrangements’. **

  38. Slide 38: Newspapers – net sales and EBIT seasonality

    Newspapers – net sales and EBIT seasonality 2010–2013 average for Newspapers (Finland) incl. digital business Net sales split EBIT* split 26% 25% 24% 29% 19% 24% 25% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 38 November 2014 Corporate Presentation

  39. Slide 39: Learning – net sales and EBIT seasonality

    Learning – net sales and EBIT seasonality 2010–2013 average for Learning Net sales split EBIT* split in relative terms 12% 13% 34% 41% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 39 November 2014 Corporate Presentation

  40. Slide 40: Appendix 2: About owners and coverage

    Appendix 2 About owners and coverage

  41. Slide 41: Sanoma – largest shareholders

    Sanoma – largest shareholders % of shares 31 October 2014 and votes 1. Jane and Aatos Erkko Foundation 23.18 23.2% 2. Antti Herlin (Holding Manutas Oy: 8.94%, 10.18 Security Trading 1.23%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 49.3%

  42. Slide 42: Analyst coverage

    Analyst coverage  Carnegie Investment  Handelsbanken  Nordea Bank Capital Markets Sami Sarkamies Matti Riikonen Rasmus Enberg tel. +358 9 165 59928 tel. +358 9 6187 1231 tel. +46 8 701 5116 Nordea.com/markets Carnegie.fi Handelsbanken.com/  Pohjola  Danske Markets Equities capitalmarkets Kimmo

  43. Slide 43: Sanoma's IR team

    Sanoma’s IR team Mr Olli Turunen tel. +358 40 552 8907 olli.turunen@sanoma.com Ms Katariina Hed tel. +358 50 412 5120 katariina.hed@sanoma.com IR team’s joint email address: ir@sanoma.com 43 November 2014 Corporate Presentation

  44. Slide 44: 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

  45. Slide 45: sSqnomd

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