Slide 1: Full-Year Result 2015
Full-Year Result 2015 Susan Duinhoven, President and CEO Kim Ignatius, CFO 9 February 2016
Slide 2: Key Points
Full-Year Result 2015 Key Points Modest expectations for 2015 exceeded Refinancing of revolving credit facility secured Portfolio focus strategy announced in 2013 finalised Solid growth in non-print media sales In 2016 profitability will improve 2 9 February 2016 Full-Year Result 2015
Slide 3: Sanoma in 2015 - Modest Expectations Exceeded
Sanoma in 2015 - Modest Expectations Exceeded Media Finland Media BeNe Learning Satisfying result in Q4 in overall Cross media domain and brand Growing digital and hybrid solutions difficult year and market strategy showing good results Profitability during the Strong increase in SBS 15% growt
Slide 4: Challenging Media Advertising Markets
Challenging Media Advertising Markets Netherlands FY/’14 Q1/’15 Q2/’15 Q3/’15 Q4/’15 FY/’15 Magazines -12 -15 -18 -5 -13 -13 TV +2 -4 -6 +11 +3 +1 Online +11 +7 +6 +10 +9 +8 Total market* +4 +1 -2 +3 +1 +1 Finland FY/’14 Q1/’15 Q2/’15 Q3/’15 Q4/’15 FY/’15 Newspapers -9 -7 -7 -8 -8 -8 Magazines -16 -
Slide 5: Group Outlook for 2016
Group Outlook for 2016 Outlook 2015 2016 Actuals Outlook Net sales development EUR 1,716.6 million, “In line with last year or improving (organic) organic growth -3.4% (2015: -3.4%)” Operational EBIT* margin EUR 83.2 million, “Estimated to be over 7%” 4.8% of net sales Divestments and acquisitions d
Slide 6: Sanoma in 2016 – Profitability Will Improve
Sanoma in 2016 – Profitability Will Improve Media Finland Media BeNe Learning Turnaround gathering speed Building on solid foundation Continue transformation to drive sustainable growth Consumer sales and reach Domain strategy and cross- Renewed offering across supported by cross-media media b
Slide 7: Sanoma in 2016 – Media Finland “Suunta” Initiatives
Sanoma in 2016 – Media Finland “Suunta” Initiatives Long-term revenue enhancement and continuous cost innovations initiatives started in January Pricing and bundling of consumer portfolio Innovating sales services and processes Enhancing offering to B2B customers Innovating printing and dist
Slide 8: Q4 Highlights - BeNe
Q4 Highlights - BeNe Organic sales growth driven by digital revenues SBS advertising and viewing shares stable in a growing market Focus portfolio in magazines showing good results – sales close to last year’s level and profitability improved – Circulation sales for VT Wonen +32% (home deco), LI
Slide 9: Q4 Highlights - Media Finland
Q4 Highlights - Media Finland Good quarter in Finland supported by advertising market share gains Like-for-like advertising sales at last year’s level in a declining market – Market share gains in several media sectors – New organisation structure with extra attention on top 350 customers – Online
Slide 10: Q4 Highlights - Learning
Q4 Highlights - Learning YDP restructuring impacted traditionally light fourth quarter Nowa Era gained market share in declining markets International learning organization YDP – realigning operations – Strong corrective actions taken during Q4 Cost savings across Learning businesses implement
Slide 11: Sanoma’s Key Strategic Priorities
Sanoma’s Key Strategic Priorities Fulfil customer Utilise growth Accelerate Improve cash needs in and digital cost innovation conversion selected transformation and media brands opportunities deleverage and domains in Learning our business 11 9 February 2016 Full-Year Result 2015
Slide 12: Financials
Financials SAN OM CMecauteaelle|
Slide 13: Q4 2015 – Financial Overview
Q4 2015 – Financial Overview Net sales, organic growth -3.0%, EUR 408.8 million (452.5) EBIT excluding non-recurring items, EUR -8.9 million (-5.6) – Media Finland – Better than estimated revenues as well as cost savings, including variable remuneration, contributed to profitability – Media BeNe
Slide 14: Dividend per share EUR 0.10
Dividend per share EUR 0.10* Dividend per share and dividend yield** Payout ratio (DPS / EPS excluding non-recurring items, %) 6.8% 8.1% 0.60 0.60 77 77 69 61 4.3% >50% 1.6% 2.6% 0.20 23 0.10 0.10 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Dividend policy Sanoma conducts an active dividend po
Slide 15: Net Sales Development
Net Sales Development Q4 2015 10–12/2015 10–12/2014 10–12/2015 EUR million EUR million organic growth, % Media Organic sales growth driven by TV as BeNe: well as online and mobile. Reported Group 408.8 452.5 -3.0 sales impacted by divestment of Belgian Media BeNe 227.6 241.5 +0.6 magazine titles. Me
Slide 16: EBIT Excluding Non-Recurring Items Development
EBIT Excluding Non-Recurring Items Development Q4 2015 EUR million 10–12/2015 10–12/2014 Media + Cost efficiency as a result of smaller Group -8.9 -5.6 BeNe: portfolio and domain approach - Additional TV amortisations Media BeNe 10.9 23.3 - Divestment of magazines in Belgium Media Finland 15.6 5.6 M
Slide 17: Income Statement
Income Statement Reported figures impacted by multiple divestments EUR million 10–12/2015 10–12/2014 1–12/2015 1–12/2014 Net sales 408.8 452.5 1,716.6 1,901.6 EBITDA excl. non-recurring items 88.7 73.8 389.3 392.0 of net sales 21.7% 16.3% 22.7% 20.6% Amortisations related to TV programme rights -51.
Slide 18: Free Cash Flow
Free Cash Flow Cash flow from operations less cash CAPEX Free cash flow excl. nri EUR million 10–12/2015 10–12/2014 1–12/2015 1–12/2014 1–12/2015 1–12/2014 EBITDA excl. non-recurring items 88.7 73.8 389.3 392.0 389.3 392.0 TV programme costs -46.1 -47.0 -197.6 -184.7 -197.6 -184.7 Prepublication cos
Slide 19: Capital Structure 31 December 2015
Capital Structure 31 December 2015 EUR 500 million Syndicated Revolving Credit Facility Key figures signed in February 2016 – Maturity of 4 years, with a 1-year extension option 1000 950 930 7 920 – Initial margin of 1.75% over Euribor. Margin depending on the 900 852 825 845 leverage ratio of the
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Slide 21: Appendix
Appendix SAN OM CMecauteaelle|
Slide 22: Summary of Operating Performance
Summary of Operating Performance FY 2015* – New media sales: EUR 580 million in Media Finland and Media BeNe Three Strategic Business Units Media Finland Media BeNe Learning Other** TV & Radio Net sales EUR 340 million Magazines Net sales EUR 530 million Online & Mobile Net sales FY 2015 FY 2015 FY
Slide 23: Consumer Confidence
Consumer Confidence 30 20 6.1 10 0 -10 5.1 -20 -30 -40 Sep Sep Sep Sep Sep Nov Mar May May May May May Mar Mar Nov Mar Nov Nov Mar Nov Jan Jul Jul Jul Jul Jul Jan Jan Jan Jan 2011 2012 2013 2014 2015 Netherlands Finland Source: Eurostat 23 9 February 2016 Full-Year Result 2015
Slide 24: Net Sales Development
Net Sales Development FY 2015 1–12/2015 1–12/2014 1–12/2015 Media Net sales declined mainly due to divestments of EUR million EUR million organic growth, % BeNe: non-focus magazine titles as well as lower print Group 1,716.6 1,901.6 -3.4 advertising sales. TV sales increased, supported by higher mar
Slide 25: EBIT Excluding Non-Recurring Items Development
EBIT Excluding Non-Recurring Items Development FY 2015 EUR million 1–12/2015 1–12/2014 Media + Cost efficiency Group 83.2 118.8 BeNe: + SBS TV operations + Focus on smaller portfolio and domain Media BeNe 63.9 71.2 approach - Additional TV amortisations Media Finland 13.0 23.5 Learning 44.7 51.4 Med
Slide 26: Net Sales Split
Net Sales Split FY 2015 Media operations Learning Netherlands and Finland 89% of net sales Diversified portfolio with several key markets 48% 34% 41% 28% 16% 13% 11% 8% 2% 1% Netherlands Finland Belgium Other Netherlands Poland Finland Belgium Sweden International Consumer media (BeNe and Finland) L
Slide 27: Media BeNe
Media BeNe Key figures 2015 2014 EUR million FY 2015 Q4 Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 Net sales 829.5 227.6 196.4 216.0 189.5 870.8 241.5 203.6 231.7 194.0 Digital 316.6 94.9 70.6 83.9 67.1 308.6 90.3 67.8 84.6 65.9 Online & mobile 89.7 27.4 19.8 21.6 20.9 87.2 24.9 20.1 21.8 20.4 TV 226.9 67.5 50.8
Slide 28: Media Finland
Media Finland Key figures 2015 2014 EUR million FY 2015 Q4 Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 Net sales 572.8 152.2 131.9 145.7 143.0 637.2 165.5 148.0 164.6 159.0 Digital 212.8 59.3 46.6 56.9 50.0 198.7 53.2 43.5 53.4 48.6 Online & mobile 97.2 27.4 22.1 25.7 21.9 84.8 23.2 18.3 22.1 21.3 TV & radio 115.7
Slide 29: Learning
Learning Key figures 2015 2014 EUR million FY 2015 Q4 Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 Net sales 280.5 23.3 121.8 97.9 37.4 292.0 30.9 113.0 106.9 41.2 Netherlands 95.3 6.4 27.5 39.9 21.5 98.1 8.3 24.6 40.7 24.5 Poland 84.0 7.4 57.2 12.8 6.6 86.8 12.6 51.1 17.8 5.2 Finland 43.6 3.4 11.0 25.5 3.8 48.3 4.
Slide 30: TV – Net Sales and EBIT Seasonality
TV – Net Sales and EBIT Seasonality 2010–2015 average for Dutch and Finnish TV* Net sales split EBIT** split 5% 22% 29% 30% 44% 29% 20% 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. 30 9 February 2016 Fu
Slide 31: Magazines – Net Sales and EBIT Seasonality
Magazines – Net Sales and EBIT Seasonality 2010–2015 average for Dutch and Finnish Magazines* Net sales split EBIT** split 19% 23% 27% 29% 29% 26% 24% 23% 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’. **
Slide 32: Newspapers – Net Sales and EBIT Seasonality
Newspapers – Net Sales and EBIT Seasonality 2010–2015 average for Newspapers (Finland) incl. digital business Net sales split EBIT* split 25% 22% 26% 34% 16% 24% 25% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 32 9 February 2016 Full-Year Result 2015
Slide 33: Learning – Net Sales and EBIT Seasonality
Learning – Net Sales and EBIT Seasonality 2010–2015 average for Learning Net sales split EBIT* split in relative terms 11% 13% 41% 35% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 33 9 February 2016 Full-Year Result 2015
Slide 34: Sanoma – Largest Shareholders
Sanoma – Largest Shareholders % of shares 31 December 2015 and votes 1. Jane and Aatos Erkko Foundation 23.44 23.4% 2. Antti Herlin 11.04 (Holding Manutas Oy: 11.02%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 48.2% 6. Ilmarinen Mutual Pe
Slide 35: Analyst Coverage
Analyst Coverage Carnegie Handelsbanken Nordea Investment Bank Capital Markets Sami Sarkamies Matti Riikonen Rasmus Engberg tel. +358 9 165 59928 tel. +358 9 6187 1231 tel. +46 8 701 5116 Nordea.com/markets Carnegie.fi Handelsbanken.com/ capitalmarkets Pohjola Danske Markets Equities Kimmo
Slide 36: Sanoma’s Investor Relations
Sanoma’s Investor Relations Mr Pekka Rouhiainen tel. +358 40 739 5897 pekka.rouhiainen@sanoma.com 36 9 February 2016 Full-Year Result 2015
Slide 37: 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
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