Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Non-Deal Roadshow (May 2011)
43 slides from Sanoma Oyj's roadshow presentation, May 2011
Slide 1: Transforming Sanoma
Sanoma - Transforming Sanoma May 2011
Slide 2: Contents
Contents Sanoma Transforming Sanoma Appendix 1: 1Q11 result Appendix 2: Four divisions operating in different fields of media Appendix 3: About owners and coverage May 2011 © Sanoma Corporation 2
Slide 3: Sanoma in brief
Sanoma in brief • One of the leading media companies in Europe • Focusing on consumer media and learning • Market leader in chosen businesses and markets • Organic growth through innovation • Restructuring business operations according to changing customer needs • Strong cash generator • Good divide
Slide 4: Balanced portfolio
Balanced portfolio Net sales EUR 2,761 million y EBIT EUR 245 million* y Personnel 15,405** Magazines Newspapers Learning Kiosks Online business Online business Language services Trade services TV and radio Literature & other*** Bookstores Casual gaming * Excluding non-recurring items ** At the end
Slide 5: Transforming Sanoma for the future
Transforming Sanoma for the future Focus on consumer media and learning: actions in 2011 Creation Acquisition of the Acquisition of learning of the Sanoma SBS free-to-air TV assets business in Finland Media division in the Netherlands and Sweden and Belgium Divestment Divestment of kiosk Divestment
Slide 6: Expanding Sanoma's digital footprint
6 Expanding Sanoma’s digital footprint Strategic rationale behind the SBS acquisition • Transaction in line with Sanoma’s strategy to focus on consumer media and learning solutions • Strategic repositioning of Sanoma’s consumer media business in the Netherlands and Belgium – gaining strong multimedi
Slide 7: Value creation
7 Value creation SBS TV operations + programming expertise from our partners + Sanoma’s strong brands, high-class know-how from print, online and TV operations = the next generation media offering for consumers and advertisers • Improved FTA offering in the acquired TV channels • Future digital busi
Slide 8: TV viewing stronger than ever...
TV viewing stronger than ever... Average daily viewing time per individual in Western Europe min/day 250 228 215 215 216 215 217 222 212 213 196 200 199 203 203 189 188 191 194 200 150 100 50 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average daily vi
Slide 9: …at the same time TV viewing is changing
…at the same time TV viewing is changing Multiscreen TV audience is growing fast Time spent viewing online videos keeps on growing European TV use by screen type (% of viewers) Time spent viewing online video by average viewer in the US TV, PC and mobile TV, PC and 35 Min / day None mobile None TV a
Slide 10: Tablets will change the way we perceive media
Tablets will change the way we perceive media • The first Sanoma • 50+ Sanoma apps launched as of iPad magazine today… • The first Cosmo on iPad in the world … on all key platforms: iOS (iPhone + dedicated iPad apps), Android, Symbian, … … available in app stores worldwide… … catering to consumers i
Slide 11: The emerging value chain offers lots of opportunities for us
The emerging value chain offers lots of opportunities for us 1. 2. 3. 4. 5. 6. 7. 8. 9. Content Publishing Production Store Billing and Reading Hardware Connectivity CRM and Content Platform Warehouse Revenue Interface Packaging Sharing 10. Advertising Platform • Ad network and storage • Business ru
Slide 12: Expanding our learning business
But its not all about consumer media Expanding our learning business Sanoma acquires the Finnish Bonnier acquires educational publisher the Finnish general Tammi Oppimateri- literature publisher WSOY aalit and the Swedish • The transaction of WSOY educational publisher is subject to the Bonnier Utbi
Slide 13: Strategic rationale for this transaction
Strategic rationale for this transaction • Learning is in the core of Sanoma’s strategy • General literature is in the core of Bonnier’s strategy • Bonnier Utbildning and Tammi Oppimateriaalit complement our operations • With our strong know-how in learning, we can develop these assets further
Slide 14: Helping teachers to manage their workflow
Helping teachers to manage their workflow 1–5% Learning This money will 25% WE WILL BE materials Others have increasingly ADDING abundant sourcing 20–25% VALUE Infrastructure options HERE 25% Preparing/ marking 50% This money will be 75% Teaching chasing increasingly Staff scarce resources salaries
Slide 15: How does Sanoma look like after all this?
How does Sanoma look like after all this? 2010 Pro forma net sales by division* by geographic area* 3% 14 % 26 % Finland Media 9% The Netherlands Before 46 % News Before 51 % Belgium L&L 12 % Other EU Trade Other coutries 23 % 16 % 3% 12 % 20 % 9% 44 % Finland Media 12 % After After The Netherlands
Slide 16: Dividend yield of 6.8% in 2010
Dividend yield of 6.8% in 2010 Over half of Group result for the period distributed in dividends Dividend/share Earnings/share Cash flow from operations/share 2,0 EUR 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 2004 2005 2006 2007 2008 2009 2010 • Cash flow from operations very stable over the years • D
Slide 17: Investment highlights
Investment highlights • One of the leading media companies in Europe • Focusing on consumer media and learning • Market leader in chosen businesses and markets • Organic growth through innovation • Restructuring business operations according to changing customer needs • Strong cash generator • Good
Slide 18: Appendix 1: 1Q11 Result
Appendix 1 1Q11 Result §3 Sanoma
Slide 19: Divestment of operations clearly visible
Divestment of operations clearly visible EUR million 1-3/2011 1-3/2010 Ch % 1–12/2010 Net sales 610.2 637.9 -4.3 2,761.2 EBIT excluding non-recurring items 26.4 35.6 -25.9 245.4 % net sales 4.3 5.6 8.9 EBIT 27.3 40.4 -32.5 392.7 Earnings/share, EUR 0.11 0.16 -28.8 1.85 Cash flow from operations/shar
Slide 20: News excelled in Q1
EBIT excl. non-recurring items News excelled in Q1 EUR million 40,0 35.6 -6.7 35,0 Structural 3.3 -0.9 -0.3 changes -1.8 -2.8 30,0 26.4 25,0 20,0 15,0 10,0 5,0 0,0 1-3/2010 Media News L&L Trade Elim 1-3/2011 • Media: Structural changes in Belgium and Finland main reason for the decrease. Good develo
Slide 21: SBS transaction – financing and capital structure
SBS transaction – financing and capital structure Consolidated net debt estimated to increase by some EUR 0.9 billion to EUR 1.9 billion Total debt 1Q11 Total debt after the acquisitions, estimated figures Break-down of EUR 950 million debt Break-down of EUR 1.9 billion debt Bank account *ST Bridge-
Slide 22: SBS transaction – financing and capital structure
SBS transaction – financing and capital structure Development of financial covenant ratios Equity ratio, % Net debt / EBITDA 50 3,5 45 3,0 40 35 2,5 30 2,0 25 1,5 20 15 1,0 • Sanoma will stay well within its existing financial policy with ample headroom in its current financial covenants • When calc
Slide 23: What affects Sanoma's outlook for 2011? (1/2)
What affects Sanoma’s outlook for 2011? (1/2) SBS transaction • In 2010, net sales EUR 404 million*, EBIT EUR 110 million* • Annual effects – preliminary amortisation on purchase price allocations • trade names EUR 7 million/year (amortised during 20 years) • customer and distribution relations EUR
Slide 24: What affects Sanoma's outlook for 2011? (2/2)
What affects Sanoma’s outlook for 2011? (2/2) Learning and General Literature transaction • In 2010, total net sales of acquired learning assets EUR 28 million, general literature EUR 33 million • Strong cyclicality of Learning and General Literature businesses within the year – learning: 2nd and 3r
Slide 25: Outlook for 2011
Outlook for 2011 As a result of the acquisition of SBS TV activities, the Sanoma Group's Æ Net sales are expected to increase somewhat and Æ Operating profit excluding non-recurring items is expected to improve slightly in 2011 Æ In 2010, operating profit excluding non-recurring items was EUR 245.4
Slide 26: Appendix 2: Four divisions operating in different fields of media
Appendix 2 Four divisions operating in different fields of media
Slide 27: Successful Integration
Successful Integration Steps to a leading media company 1999: Sanoma and WSOY merged and listed on the Helsinki Stock Exchange 2001: CIG acquisition Magazine division with operations in 9 countries 2003: Rautakirja merged into Sanoma 2004: Malmberg and Van In acquisition Leading educational publishe
Slide 28: Market leader in most of the operating countries
Market leader in most of the operating countries Finland Russia Estonia Latvia Lithuania The Netherlands Poland Belgium Czech Hungary Romania Bulgaria In addition, Esmerk operates in Finland, UK, Sweden, Germany, France, Russia and Malaysia. AAC operates in Finland, Sweden, Denmark, Norway, UK, Russ
Slide 29: Balanced portfolio
Balanced portfolio Net sales EUR 2,761 million y EBIT EUR 245 million* y Personnel 15,405** Magazines Newspapers Learning Kiosks Online business Online business Language services Trade services TV and radio Literature & other*** Bookstores Casual gaming Movie operations * Excluding non-recurring ite
Slide 30: Balanced geographically and by business
Balanced geographically and by business Net sales by geographic area Net Sales by type of revenue source Other 3% Other 11% Advertising Other EU 21% 23% (23%) Finland Retail 51% (51%) Subscription 29% 17% Netherlands 23% (23%) Single Learning copies 8% 14% The Baltic countries 5% (5%) Other CEE coun
Slide 31: Sanoma Media
Sanoma Media Net sales EBIT excluding non-recurring items EUR million EUR million 400 50 47 351 339 45 350 312 298 40 291 36 300 35 31 31 250 30 200 25 23 20 150 15 100 10 50 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2010 2011 May 2011 31
Slide 32: Sanoma Media
Sanoma Media Key figures 1–3/ 1–3/ 1–12/ EUR million 2011 2010 Ch % 2010 Net sales 291.1 312.1 -6.7 1,299.6 The Netherlands 105.3 107.4 -2.0 490.4 Finland 74.2 92.6 -19.9 339.3 The CEE countries 51.4 48.7 5.5 214.9 Belgium 50.1 53.5 -6.4 208.3 Other businesses and eliminations 10.2 9.9 3.4 46.7 EBIT
Slide 33: Sanoma News
Sanoma News Net sales EBIT excluding non-recurring items EUR million EUR million 140 18 16 115 16 120 109 108 109 105 14 13 13 100 12 80 10 10 9 60 8 6 40 4 20 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2010 2011 May 2011 33
Slide 34: Sanoma News
Sanoma News Key figures 1–3/ 1–3/ 1–12/ EUR million 2011 2010 Ch % 2010 Net sales 108.4 109.4 -0.9 437.6 Helsingin Sanomat 61.2 59.1 3.6 235.4 Ilta-Sanomat 19.1 19.9 -4.1 83.3 Other publishing 23.7 25.3 -6.4 99.5 Other businesses and eliminations 4.4 5.0 -13.3 19.4 EBIT excluding non-recurring 12.9
Slide 35: Sanoma Learning & Literature
Sanoma Learning & Literature Net sales EBIT excluding non-recurring items EUR million EUR million 140 50 46 121 120 40 106 100 30 26 80 20 65 58 61 60 10 40 0 -5 -6 20 -10 -14 0 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2010 2011 May 2011 35
Slide 36: Sanoma Learning & Literature
Sanoma Learning & Literature Key figures 1–3/ 1–3/ 1–12/ EUR million 2011 2010 Ch % 2010 Net sales 60.7 58.2 4.2 350.1 Learning 34.3 29.9 14.6 249.3 Language services 8.7 6.9 25.4 27.1 Literature and other businesses 20.1 23.6 -15.0 83.6 Eliminations -2.4 -2.3 -5.8 -9.9 EBIT excluding non-recurring
Slide 37: Sanoma Trade
Sanoma Trade Net sales EBIT excluding non-recurring items EUR million EUR million 250 8 7 7 201 200 181 170 174 6 6 162 5 150 4 4 3 100 3 2 2 50 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2010 2011 May 2011 37
Slide 38: Sanoma Trade
Sanoma Trade Key figures 1–3/ 1–3/ 1–12/ EUR million 2011 2010 Ch % 2010 Net sales 161.8 170.2 -5.0 726.3 Kiosk operations 85.3 91.9 -7.2 398.4 Trade services 32.4 30.3 7.1 131.3 Bookstores 24.8 26.0 -4.7 120.6 Movie operations 21.9 25.4 -13.9 90.0 Eliminations -2.6 -3.4 22.5 -14.0 EBIT excluding no
Slide 39: Appendix 3: About owners and coverage
Appendix 3 About owners and coverage
Slide 40: Largest shareholders
Largest shareholders 30 April 2011 % of shares and votes Aatos Erkko (of which through Oy Asipex Ab: 7.25%) 23.02 Robin Langenskiöld 7.54 Rafaela Seppälä 7.17 Antti Herlin (Holding Manutas Oy: 3.27%, Security Trading 0.51%) 3.79 Helsingin Sanomat Foundation 3.50 Ilmarinen Mutual Pension Insurance Co
Slide 41: Analyst coverage
Analyst coverage Carnegie Investment Bank Exane BNP Paribas Pohjola Matti Riikonen Andrea Beneventi Kimmo Stenvall tel. +358 9 6187 1231 tel. +44 20 7039 9509 tel. +358 10 252 4561 Carnegie.fi Exane.com Opstock.fi Crédit Agricole Cheuvreux Nordic E. Öhman J:or Securities Finland SEB Enskilda Niklas
Slide 42: Sanoma's IR team
Sanoma’s IR team Mr Kare Laukkanen tel. +358 105 19 5064 kare.laukkanen(at)sanoma.com Ms Anna Tuominen tel. +358 105 19 5066 anna.tuominen(at)sanoma.com Ms Katariina Hed tel. +358 105 19 5062 katariina.hed(at)sanoma.com IR team’s joint email address: ir(at)sanoma.com May 2011 © Sanoma Corporation 42
Slide 43: Inspires, Informs and Connects
Inspires, Informs and Connects