Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Q1 2014 Earnings Presentation

33 slides from Sanoma Oyj's earnings presentation, Apr 30, 2014

  1. Slide 1: Q1 2014 Interim Report

    Q1 2014 Interim Report Harri-Pekka Kaukonen, President and CEO Kim Ignatius, CFO 30 April 2014

  2. Slide 2: Cost savings compensated decline in net sales

    Cost savings compensated decline in net sales Strategy proceeding well – new media sales grew by 8.6% Q1 2014  Media Netherlands – good quarter, cost control, lower TV costs, also market environment improving slightly  Media Finland – strong growth in online & mobile, cost savings offset decline i

  3. Slide 3: Sanoma Redesign – strategic update

    Sanoma Redesign – strategic update Recent developments Strategic #1 consumer media company in the Netherlands and Finland objectives #1 learning company in all operating markets Lead and Consumer media (38%* of net sales in new media in the NL and FIN) grow strategic  Transformation proceeding well

  4. Slide 4: Logic of consumer media

    Logic of consumer media 1. 2. 3. Consumer Marketing Reach insight solutions 4 30 April 2014 Q1 2014 Interim Report

  5. Slide 5: Increasing reach – examples

    1. Increasing reach – examples  #1 nationwide newspaper, 2.2 million readers weekly in different channels  #1 online news service in the Netherlands  Growth in digital-only subscriptions +83%  900 million page views monthly  7.7 million visits weekly, growth +16%  #1 radio channel in Finland 

  6. Slide 6: Consumer insight – Big Data offers new business opportunities

    Consumer insight – Big Data offers new business opportunities 2. Consumer insight 3. Marketing solutions Consumer experience Concrete examples: Consumer Targeted Effective  Sanoma account: reaches insight offerings marketing around 1 million Finns Targeted advertising  Advertising campaigns Behavi

  7. Slide 7: Four consumer media platforms

    Summary of operating performance Last 12 months* – New media sales EUR 520 million Three Strategic Business Units Media Finland Media Netherlands Learning Other*** Sanoma Digital (pure) Media Belgium Net sales EUR 100 million Four consumer media platforms Media RUS&CEE TV & radio** Net sales Other o

  8. Slide 8: Market environment

    Market environment Advertising market – split by type  Advertising correlated with consumer confidence 50%  Recent positive trend in the Netherlands partly 33% 31% 30% 27% visible in advertising market 14% 8% 6% – TV advertising showing positive signs – Print advertising under pressure Print TV On

  9. Slide 9: Group outlook for 2014 and mid-term (unchanged)

    Group outlook for 2014 and mid-term (unchanged) Outlook 2013 2014 Mid-term Main drivers for the 2014 EBIT outlook actuals outlook outlook + EUR 100 million gross cost savings programme, will realise (IFRS 11 restated) (2016->) partly in 2014 - Underlying development in print circulation and print ad

  10. Slide 10: Financials

    Financials SaAN OM CMecautcaelle|

  11. Slide 11: Net sales split – last 12 months

    Net sales split – last 12 months Net sales EUR 2,051 million | EBIT excl. nri EUR 153.2 million Media operations in total Learning Netherlands and Finland 83% of net sales Diversified portfolio with five key markets 3% Netherlands 7% 10% 10% Poland Netherlands 11% 31% 42% Finland Finland Belgium Bel

  12. Slide 12: Income Statement

    Income Statement Restated* Restated* EUR million 1–3/2014 1–3/2013 1–12/2013 Net sales 438.3 470.6 2,083.5 EBITDA excl. non-recurring items 65.5 69.6 436.6 of net sales 14.9 14.8 21.0 Amortisations related to TV programme rights -43.1 -44.0 -171.1 Amortisations related to prepublication rights -6.3

  13. Slide 13: Net sales development by strategic business unit

    Net sales development by strategic business unit Q1 2014 1-3/2014 1-3/2014 1-3/2014 organic EUR million EUR million EUR million growth, % Group 438.3 470.6 -6.3 470.6 -6.2 -9.2 -4.5 Media -12.5 146.0 152.2 -4.1 438.3 Netherlands Media Finland 159.0 168.2 -5.5 Learning 41.2 45.7 -7.4 Other & elim. 92

  14. Slide 14: EBIT excl. non-recurring items development

    EBIT excl. non-recurring items development Q1 2014 EUR million 1-3/2014 1-3/2013 EUR million Group -4.0 -2.5 Media Netherlands 8.5 0.6 Media Finland 0.4 5.5 +7.9 -5.1 Learning -7.0 -4.4 Other & elim. -5.9 -4.3 -2.5 -2.6 -4.0 Media + Lower TV costs -1.6 Netherlands: + Cost efficiency - Print sales Me

  15. Slide 15: Free cash flow

    Free cash flow Cash flow from operations less cash CAPEX Restated* Restated* EUR million 1–3/2014 1–3/2013 1–12/2013 EBITDA excl. non-recurring items 65.5 69.6 436.6 TV programme costs -44.8 -55.8 -186.4 Prepublication costs -7.1 -6.5 -31.2 Change in working capital -27.8 -37.3 19.8 Interest paid -2

  16. Slide 16: Cost savings proceeding according to plan

    Cost savings proceeding according to plan Cost savings run-rate around EUR 45 million  Gross margin increased vs. Q1 2013 Cost of sales split (EUR million) and Gross Margin -200 70  Other expenses Fixed costs lower in absolute terms 60 Purchased printing  EUR 100 million Group-wide cost -150 50 P

  17. Slide 17: Capital structure

    Capital structure 31 March 2014  Net debt EUR 920 million (Q1 2013: 1,308) Net debt / EBITDA adjusted 4,7 4,3 – Net debt / EBITDA adjusted 4.1 times (4.0*) 3,6 4,1 <3.5  EBITDA adjusted is calculated based on 12-month 2,8 rolling EBITDA excl. non-recurring items (continuing 2,5 operations), where

  18. Slide 18: Q&A

    Q&A

  19. Slide 19: Appendix: Sanoma's business units

    Appendix 1 Sanoma’s business units

  20. Slide 20: Advertising markets in Q1 2014 vs. Q1 2013

    Advertising markets in Q1 2014 vs. Q1 2013 Print advertising declining in most categories, mixed development in online and TV Finland* (net development, change in %) Print Online TV Food -14 20 -13 Motor vehicles -9 7 -7 Other classified -10 23 10 Real estate -2 0 Retail -6 20 -31 Medical 6 23 35 Re

  21. Slide 21: Media Netherlands

    Media Netherlands Key figures* EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 146.0 685.8 194.1 160.0 179.6 152.2 Digital 64.0 291.0 88.2 64.8 76.5 61.6 Online & mobile 18.7 76.9 24.3 17.4 17.7 17.4 TV 45.3 214.1 63.8 47.3 58.8 44.2 Print 79.1 369.9 94.8 90.5 96.1 88.5

  22. Slide 22: Media Finland

    Media Finland Key figures* EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 159.0 675.4 179.0 157.5 170.7 168.2 Digital 48.6 185.9 54.5 37.5 51.7 42.2 Online & mobile 21.3 74.7 21.7 15.8 20.5 16.7 TV & radio 27.3 111.2 32.8 21.7 31.2 25.5 Print 108.8 483.8 123.1 118.9 117

  23. Slide 23: 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. 23 30 April 2014 Q1

  24. Slide 24: 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’.

  25. Slide 25: 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. 25 30 April 2014 Q1 2014 Interim Report

  26. Slide 26: Sanoma Learning

    Sanoma Learning Key figures EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 41.2 304.6 32.4 123.0 103.5 45.7 Netherlands 24.5 95.3 7.4 25.0 36.5 26.3 Poland 5.2 83.8 12.8 46.7 18.1 6.2 Finland 4.8 53.5 5.6 13.9 28.7 5.3 Belgium 1.9 33.8 3.6 17.1 11.2 1.8 Sweden 4.9 29.3

  27. Slide 27: 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. 27 30 April 2014 Q1 2014 Interim Report

  28. Slide 28: Appendix: About owners and coverage

    Appendix 2 About owners and coverage

  29. Slide 29: Sanoma – largest shareholders

    Sanoma – largest shareholders % of shares 31 Mar 2014 and votes 1. Jane and Aatos Erkko Foundation 23.02 23.0% 2. Antti Herlin (Holding Manutas Oy: 7.26%, 8.48 Security Trading 1.20%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 6. Ilmarine

  30. Slide 30: Analyst coverage

    Analyst coverage  Carnegie Investment  Evli Bank  Nordea  Pohjola Bank Mikko Ervasti Sami Sarkamies Kimmo Stenvall Matti Riikonen tel. +358 9 4766 9205 tel. +358 9 165 59928 tel. +358 10 252 4561 tel. +358 9 6187 1231 Evli.com Nordea.com/markets Pohjola.fi Carnegie.fi  Handelsbanken  Pareto Se

  31. Slide 31: 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 31 30 April 2014 Q1 2014 Interim Report

  32. Slide 32: 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

  33. Slide 33: sSqnomd

    sSqnomd

Sanoma — Q1 2014 Earnings Presentation on 6ix