Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (November 2001)
63 slides from Alma Media Oyj's investor day presentation, Nov 28, 2001
Slide 1: Business Information Group
BUSINESS INFORMATION GROUP Juha Blomster
Slide 2: BIG Concept Development
BIG CONCEPT DEVELOPMENT CUSTOMERS Bus. Inf. B to B Ware- - customer needs house B to C + Bus. - customer needs Financial Inf. News - BC Online Super BUSINESS Marketing Inf. - BI Portal? INTELLIGENCE Desk Business Inf. + NETWORKING CONTENT O DIA - - content partners TI E LTI Kauppalehti - KL Online (
Slide 3: Product Family: Suomen Uutislinkki
Business Information Group Suomen PRODUCT Uutislinkki FAMILY MTV/KL 50/50%
Slide 4: Product Family: Suomen Uutislinkki
Business Information Group PRODUCT FAMILY Suomen Uutislinkki
Slide 5: Current Model: Diversified News Production
CURRENT MODEL: DIVERSIFIED NEWS PRODUCTION Kauppalehti Kauppalehti, News Room Print Optio, Saldo, Extras Online, Saldo, Internet Morningstar Finland Online News Room Exchange rates, News, Mobile SMS, WAP, PDA Uutislinkki News Room TV MTV3 Business News, Broadband distribution Text channel
Slide 6: Future Model: Multimedia News Room
FUTURE MODEL: MULTIMEDIA NEWS ROOM CONCENTRATION ON BUSINESS NEWS Print FLOWS OF NEWS AND INFORMATION 539,000 Kauppalehti, readers Optio, Saldo, Extras Internet 60,000 user Online, Saldo id’s/week Morningstar Finland Super Desk Mobile 1,300 Exchange rates, News, user SMS,WAP,PDA id’s/week Radio TV M
Slide 7: Business Information Group Product Family
Business Information Group PRODUCT FAMILY
Slide 8: 6543 Analysed Companies Compared to Excellent Figures of Nokia
6543 ANALYSED COMPANIES COMPARED TO EXCELLENT FIGURES OF NOKIA (result of 2000, status on Oct 17, 2001) ¾ Growth more than 53.6 % (511 companies, 7.8 %) ¾ Net result % more than 13.4 % (628 companies, 9.6 %) ¾ Return on investment more than 58.2 % (578 companies, 8.8 %) ¾ Return on equity more than
Slide 9: Baltic News Service
Business Information Group Baltic News PRODUCT Service FAMILY 85 %
Slide 10: Baltic News Service offices and facts
Business Information Group Founded in Tallinna 1990 Moskova Distributes daily around 1000 news items in five languages Riika Net sales FIM 22 million Corp. office Regional office Kaliningrad Vilna
Slide 11: Baltic News Service and Talentum
TALENTUM OYJ Business Information Group 33% Baltic News PRODUCT Service FAMILY 85 %
Slide 12: Talentum Oyj
Talentum Oyj (net sales FIM 697 million in 2000, 1081 staff members) Talentum Talentum Media 100 % Suoramarkkinointi Satama Digital Media (net sales FIM 318 million in Mega 100 % Interactive 2000, 248 staff members) (net sales FIM 35 million 98.5 % 8 magazines and newspapers 62.2 % (net sales FIM
Slide 13: Multichannel strategy: Case Business News
Multichannel strategy: Case Business News Kari Väisänen
Slide 14: Future Model: Multimedia News Room
FUTURE MODEL: MULTIMEDIA NEWS ROOM CONCENTRATION ON BUSINESS NEWS Print FLOWS OF NEWS AND INFORMATION 539,000 Kauppalehti, readers Optio, Saldo, Extras Internet 60,000 user Online, Saldo id’s/week Morningstar Finland Super Desk Mobile 1,300 Exchange rates, News, user SMS,WAP,PDA id’s/week Radio TV M
Slide 15: Business News on MTV3 Channel
Business News on MTV3 Channel Average number of viewers per period 10+ year old Average number of viewers 1 000 000 900 000 798 000 800 000 768 000 774 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 1.9.-31.12.1999 1.1.-31.5.2000 1.9.-31.12.2000 1.1.-31.5.2001 Source: Finnpane
Slide 16: Saldo on MTV3 Channel
Saldo on MTV3 Channel Market share per target group (%) 1.9. – 7.10.2001 15-24 -years old 45 Women 25-44 -years old 42 Men 25-44 -years old 43 45-64 -years old 40 65+ year old 34 Decision makers 68 Helsinki area 29 Tampere, Turku 38 Oulu, Lahti, Kuopio, Jkl, Pori 57 Other cities 45 % 0 20 40 60 80 1
Slide 17: Internet access by country
Heavy net users more likely to use news from different sources: business information is known useful from experiences % People 16+ with Internet Access, Any Location 80 80 rld s, 70 o W ces h e Source : GNETT Quarter 2, 2001 60 d t t ac ou n rne 50 + ar In t e e 1 6 e s t n 40 op l ig h a ti o Pe e
Slide 18: The fundamental conditions for using business news
The fundamental conditions for using business news • Reliability • Current interest • Tells the truth • The information has to be • Reliable information logical • The sources are recognizable • The information is useful and free to use • The information has a good professional value • Interest • Ava
Slide 19: The motives for financial information
The motives for financial information (Why financial information is acquired?) 1. Keeping up the skills and professionalism of the employees • emphasized on heavy users • picking information that is interesting for oneself; the general financial development, the financial development of one’s own bu
Slide 20: The motives for financial information
The motives for financial information (Why financial information is acquired?) 3. Curiosity and interest • personal and individual interest in financial questions; the importance of the economy for the society and global trends • the economy is interesting as a social and universal political phenome
Slide 21: Heikki Saraste, Alma Media
Capital Markets ALMA | MEDIA ALPRESS Heikki Saraste ALMA | MEDIA
Slide 22: Regional leaders, local and free-distribution newspapers
regional leaders local newspapers town and free-distribution newspapers [ 17.9.2001/ja/kj
Slide 23: Printing operations
Printing operations Lapin Kansa, printing plant, Kainuun Sanomat, printing plant Rovaniemi + sheet printing press, Kajaani [ SK-Print, Aamulehti, printing plant, Pori Tampere
Slide 24: Alpress Oy
Alpress Oy - 5 regional newspapers - afternoon paper - 15 local newspapers - 10 town and free-distribution newspapers - total circulation nearly 500,000 copies - more than 1.5 million readers - print run of town and free-distribution newspapers 216,600 (12/00)
Slide 25: Personnel of Alpress Oy in 2001
The personnel of Alpress Oy in 2001 about 2,450 journalists 600 office and senior staff 530 operatives and technical staff 220 delivery staff 1,100 Printing plants Tampere Pori Rovaniemi Kajaani Paper consumption in 2001 about 43,000 tons (1,400 trucks)
Slide 26: Income statement 1-9/2001 compared to 1-9/2000
INCOME STATEMENT 1-9 /2001 compared to 1-9/2000 Alpress total FIM million 1–9/2001 1–9/2000 growth Net sales 922.7 848.2 9% Operating margin 164.2 156.9 5% Operating profit 112.4 104.9 7% Investments 29.6 29.5 0% Depreciation 51.8 52.0 0% of which amortization of goodwill 11.7 11.0 6%
Slide 27: Time spent on different media
Time spent on different media Intensity (%, those who followed yesterday) Newspapers 47 Television 37 Magazines 30 Afternoon papers 27 Free-distribution newspapers 27 Direct mail advertising 21 Radio 4 0 20 40 60 80 100 Source: Intermedia Survey 2000, Suomen Gallup Media Oy %
Slide 28: How appealing do readers find newspapers?
How appealing do readers find newspapers? Hardly appealing at all 9% Very or fairly appealing 91 % Source: National Media Survey, autumn 2000
Slide 29: Reasons for using different media
Reasons for using different media 90 To know what happens 56 84 in Finland 61 65 7 87 To know what happens 59 85 in the world 47 60 11 81 To know what happens 26 30 on the regional level 18 43 2 Newspapers 40 Magazines To know where to go 13 6 shopping 6 Television 4 1 Afternoon papers To get impuls
Slide 30: How many people trust their own newspaper?
How many people trust their own newspaper? Consider the news trustworthy, % 100 88 86 81 82 81 86 85 81 80 60 40 20 0 85 87 89 91 95 97 99 01 19 19 19 19 19 19 19 20 Source: Trust in Newspaper 2001, Suomen Gallup Media Oy
Slide 31: As far as shopping is concerned…
As far as shopping is concerned… Reasons for using different media To know where to go shopping (%) 50 40 Newspapers 30 20 Evening Magazines 10 papers Television 0 Radio % 0 10 20 30 40 50 To get impulses for purchasing products and services (%) Source: Intermedia Survey 2000, Suomen Gallup Media Oy
Slide 32: Media expenditure in Finland 2001/1-9
Media spenditure in Finland in 2001/1-9 Newspapers 57.7 % Magazines TV 19.7 % Radio 3.4 % Others 4.4 % Source: Gallup-Mainostieto
Slide 33: Positive circle in newspaper publishing
Positive circle in newspaper publishing Good editorial contents Loyal readers, growing or steady circulation, good coverage in target group Strong media arguments, healthy advertising income Effective and professional processes Good economy
Slide 34: Healthy profitability, good cash flow
BRANDS B HIGH STRONGEST R COVERAGE LOCAL MEDIA A LOCAL DOMINANCE N D HEALTHY PROFITABILITY BEST REGIONAL LOYAL READERS CONTENT AND SUBSCRIBERS GOOD CASH FLOW C EDITORIAL RESEARCH PRODUCTION COOPERATION TECHNOLOGY H A I CIRCULATION EFFECTIVE PROCESSES N MEDIA MARKETING ONLINE EXTENSIONS DISTRIBUTION
Slide 35: Brands
BRANDS B HIGH STRONGEST R COVERAGE LOCAL MEDIA A LOCAL DOMINANCE N LOYAL READERS BEST REGIONAL D AND SUBSCRIBERS CONTENT C EDITORIAL RESEARCH PRODUCTION COOPERATION TECHNOLOGY H A I CIRCULATION EFFECTIVE PROCESSES N MEDIA MARKETING ONLINE EXTENSIONS DISTRIBUTION DEVELOPMENT
Slide 36: Healthy profitability, good cash flow
Healthy profitability GOOD CASH FLOW
Slide 37: Kai Telanne & Matti Apunen, Aamulehti
Capital AAMULEHTI Kai Telanne & Matti Apunen
Slide 38: Aamulehti's media coverage
AAMULEHTI´S MEDIA COVERAGE Circulation on weekdays 133 779 copies on Sundays 142 157 copies Suomen Mediatarkastus Oy: Audited circulation 2000 READERSHIP 337 000 READERSHIP COVERAGE 73 % in Tampere market area 78 % in Tampere Gallup-Media: KMT August 2000
Slide 39: Coverage of newspapers in Tampere area
COVERAGE-% OF THE VARIOUS NEWSPAPERS IN TAMPERE AREA Aamulehti 73 Ilta-Sanomat weekend supplement 20 HS monthly supplement 18 Ilta-Sanomat 17 Iltalehti weekly supplement 17 Iltalehti 15 Helsingin Sanomat 10 HS weekly supplement NYT 9 Kauppalehti Optio 8 Kauppalehti 6 Taloussanomat 2 % 0 20 40 60 80
Slide 40: Net sales 1992-2000
NET SALES 1992 – 2000 MFIM 400 380 360 340 320 300 280 260 92 93 94 95 96 97 98 99 '00
Slide 41: Income structure
INCOME STRUCTURE Other income circulation 1% revenues 36 % Advertising revenues 63 %
Slide 42: Income structure 1990-2000
INCOME STRUCTURE 1990 - 2000 MFIM 260 240 220 200 180 160 140 120 Advertising 100 Circulation 80 60 90 91 92 93 94 95 96 97 98 99 '00
Slide 43: Advertising revenue
0 10 20 30 40 50 60 % Re Br tai an l d ad ve rti sin g Tr av el En te rta inm en t Ca rs & dr ADVERTISING REVENUE Ho i vi me ng s & re al Bu es si n tat es e st ob us ine ss Pu bl ic se rv ic e Ot he rc las s if ied Re cr ui tm en t
Slide 44: Market shares of media in Tampere area
MARKET SHARES OF THE VARIOUS MEDIA IN TAMPERE AREA 1997 1998 1999 2000 1-9/2001 % 100 82 78 79 79 80 80 60 40 20 11 9 7 7 6 5 6 7 7 6 5 4 5 4 4 2 1 1 1 1 0 0 1 1 1 0 Aamulehti MTV3 Tamperelainen Local radio 957 Radio Plus Nelonen and TV- Tampere
Slide 45: Development of GNP and advertising sales of Aamulehti
DEVELOPMENT OF GNP AND ADVERTISING SALES OF AAMULEHTI 1990-2000 Changes % GNP Advertising sales 20.0 15.0 10.0 5.0 0.0 90 91 92 93 94 95 96 97 98 99 00 -5.0 -10.0 -15.0
Slide 46: Subscriptions and churn 2000
Subscriptions and churn 2000 Subscriptions, total average 133 192 Standing subscriptions average 116 631 (88%) Time limited (1-12 months) subscriptions average 16 561 (12%) Cancellations of standing subscriptions 10 % Time limited subscriptions are sold 3.2 times/year = churn of this part of subscri
Slide 47: Expenditure 1992-2000
EXPENDITURE 1992–2000 MFI M 320 300 280 260 240 220 200 92 93 94 95 96 97 98 99 '00
Slide 48: Expenditure structure
EXPENDITURE STRUCTURE Editorial Marketing and expenses other expenses 21 % 24 % Distribution 21 % Printing 34 %
Slide 49: Personnel 1993-2000
PERSONNEL 1993-2000 700 600 Distribution 500 Others 400 300 200 100 0 93 94 95 96 97 98 99 '00
Slide 50: Co-operation and syndication
CO-OPERATION AND SYNDICATION Aamulehti is by far the largest producer of syndicated content in Finland. • weekly/sporadic supplements • weekly/monthly theme pages (Travel, Computers, Cars & Traffic, House & Living, Food etc.) • daily TV reviews and program information • project co-operation: joint s
Slide 51: Case Treffi
CASE TREFFI • ”Treffi” • nationwide TV guide; 16 pages • founded in 1997 • published by 14 regional newspapers • circulation 683,000 copies • 1.72 million readers every week
Slide 52: Other innovations
OTHER INNOVATIONS • Aamulehti Library as product • Ask Us: general information service (available 12/2001)
Slide 53: Systematics of research & development
SYSTEMATICS OF RESEARCH & DEVELOPIMENT A daily newspaper is a general store of information – how can we identify different reader segments, how do we keep them happy? • RISC: A tool for editorial analysis • Other reader surveys, research
Slide 54: Efficiency and accuracy
EFFICIENCY AND ACCURACY • in journalism, efficiency does not consist of maximal number of stories written by a single journalist, nor does it consist of the highest possible quality of a single story • in journalism efficiency means optimizing editorial quality and individual output, in other words:
Slide 55: Veli-Matti Asikainen & Pekka Karhuvaara
Veli-Matti Asikainen & Pekka Karhuvaara
Slide 56: Iltalehti
ILTALEHTI the third biggest newspaper in Finland national afternoon paper circulation: - 6-day 132,836 1/2001 - weekend 165,528 1/2001 readers: - 6-day 699,000 KMT - weekend 791,000 KMT number of sales outlets 7,800
Slide 57: Iltalehti market shares and online
circulation market share 38 % advertising market share 48 % Iltalehti Online - 170,000 visitors weekly - 446,000 visits weekly - average time 9:09 - 5,400,000 page impressions weekly
Slide 58: Net sales (B 2001)
NET SALES 288 MFIM (B 2001) Income structure Circulation sales Advertising sales
Slide 59: Strategy 1997
STRATEGY 1997 ” #1 in market” = target is to become the market leader
Slide 60: Investments in content, brand marketing, technology
1. Investments in content 2. Investments in brand marketing 3. Investments financed by using the most cost- effective production technology
Slide 61: Market development 1994-2002
9/97 hp Kokonaismarkkinoiden kehitys vuosina 1994 - 2002 keskilevikkiluvuilla 400000 350000 Kok.mar kkinat 353000 358000 343325 347000 333985 339106 300000 317550 320591 315187 250000 200000 215629 212533 214589 220926 219634 218931 216000 215000 210000 ILTA-SANOMAT 150000 148000 138000 100000 12439
Slide 62: Circulation of Iltalehti
CIRCULATION OF ILTALEHTI 140000 +8 % +1.6 % 130000 +3.8 % +5.7 % 120000 +6.7 % 110000 +0.7 % +3.3 % 100000 90000 80000 1994 1995 1996 1997 1998 1999 2000 2001
Slide 63: Net sales (MFIM)
NET SALES (MFIM) 350 300 250 200 150 100 50 0 1994 1995 1996 1997 1998 1999 2000 E2001