Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Non-Deal Roadshow (December 2009)
32 slides from Alma Media Oyj's roadshow presentation, Dec 8, 2009
Slide 1: Alma Media: Renewing news media
Al Alma Media M di Renewing g news media Roadshow in Paris with Danske Markets December 8th, 2009
Slide 2: The structure of this presentation
The structure of this presentation • Imperative questions for the future • Alma Al M Media di iin th the Finnish Fi i h market k t • Strategy towards the future • Some answers to future questions q • Summary • Appendix material Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 2
Slide 3: Media in transformation
Media in transformation Change is taking place fast
Slide 4: The need for renewal in the media business
The need for renewal in the media business TECHNO- LOGICAL PROGRESS MEDIA CONSUMP- CONSUMP TION CHANGES CHALLENGES IN MEDIA BUSINESS RENEWAL: PRODUCTS, PROCESSES, COMPETENCIES Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen 4
Slide 5: Transformation issues to solve
Transformation issues to solve Changes in New distribution Revenue from consumer channels online content behaviour Digital Co-operation with New breed concepts other publishers of content for advertisers Future Synergistic Transforming of newspaper operating models revenue models printing i i Roadsh
Slide 6: Media usage of young people during a week
Media usage of young people during a week % of 15–24-year-olds 100 80 60 2005 005 2006 40 2007 20 2008 8 0 Magazines Motion Internet Literature News- Video/ Sound Radio TV pictures papers DVD recordings Source: Atlas TNS Gallup Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 6
Slide 7: Finnish media markets and Alma Media
Fi i h media Finnish di markets k and Alma Media
Slide 8: Newspapers and online media in Finland
Newspapers and online media in Finland NATIONAL REGIONAL AND LOCAL NEWSPAPERS NEWSPAPERS + ONLINE MEDIA Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen 8
Slide 9: Online marketplaces in Finland
Online marketplaces in Finland REAL JOBS VEHICLES ESTATES CONSUMER ADS Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen 9
Slide 10: Newspapers are a solid business
Newspapers are a solid business • Steady reader base on Alma’s regional papers – early l home h d delivery li b by 6 6.30 30 a.m. as standard t d d – 97 % of regional newspapers on subscriber basis g – 85 to 93 % of regional p paper p subscriptions p are standing orders – demographic profile in line
Slide 11: Newspapers have good reach
Newspapers have good reach C Coverage b age group, % by Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen 11
Slide 12: Newspaper circulations on healthy level
Newspaper circulations on healthy level CHANGE TREND 2007-2008 2009-2010 Circulations of Alma -0,5 % Discontinuation of free copies regional papers will cause a drop in circulations Circulations of all 7-day -1,0 % newspapers, combined Circulation of Discontinuation of free student Kauppalehti copie
Slide 13: Strong online position 2007–2009
Strong online position 2007–2009 Weekly visitors of Alma Media web services (million browsers) 2007 2008 2009 1.8 3.3 Source TNS Metrix. Visitors as yearly average figure, 2009 figure is 1-9/2009 average. Duplicate use not taken into account. Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itko
Slide 14: Alma Media readers and reach
Alma Media has 2.9 million readers or 64 % of its newspapers and average reach among online li media di (as ( a nett figure) fi ) Fi i h people Finnish l Source: TNS Atlas 2008. Figures show the reach of one ad in a newspaper plus a banner for one week. Roadshow Dec2009 / Rauno Heinonen & Tuomas Itk
Slide 15: Organic growth of newspapers is limited
Organic growth of newspapers is limited Market size & market share estimates for 2009 ALMA’S FUTURE GROWTH MARKET ~20 % ~23 % ~18 % % SHARE % 800 25 700 20 600 500 15 400 10 300 WEB NEWSPAPER NEWSPAPER ADVERTISING CIRCULATION ADVERTISING GROWTH 200 SALES GROWTH p.a. NEWSPAPER NEWSPAPER 5 GROWTH p.a.
Slide 16: Advertising sales change Q3/2009
Advertising g sales change g Q3/ Q3/2009 9 Alma Media vs. market M k t Market Alma Media Change, % Q3/09 * Q3/09 Newspapers -23,4 23,4 -21,7 21,7 ** Magazines -22,7 - Television -13,6 - Radio -10,3 - Internet -4,8 -12,3 TOTAL -19,5 -20,4 Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 1
Slide 17: The strategy towards the future
The strategy towards the future
Slide 18: Online sales & other sales
Online sales & other sales 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% 2005 2006 2007 2008 E2009 E2010 E2011 E2012 E2013 E2014 Excl. online sales Online sales Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 18
Slide 19: Cornerstones of Alma's strategy
Cornerstones of Alma’s Alma s strategy CHAINING OPERATIONS RENEWAL Competitive advantage and capabilities From newspaper into a through managed internal combination of paper and online cooperation p and p projects j complementing p g each other THE WINNING TEAM IN NEWSPAPER AND ONLINE MEDIA INTERNAT
Slide 20: Mergers & acquisitions
Strategic cornerstone Mergers & acquisitions
Slide 21: Mergers & acquisitions as accelerators of organic growth
Mergers & acquisitions as accelerators of organic growth • Talentum – Strategic shareholding approved by Competition Authority – Ownership after mandatory tender offer: 32.14 % • Consolidation C lid i iin Finland i l d • Russia Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 21
Slide 22: Internationalisation
Strategic cornerstone Internationalisation
Slide 23: Marketplaces as the driver for international expansion
Marketplaces as the driver for international expansion IN BALTIC 32 COUNTRIES COUNTRIES UKRAINE POLAND CROATIA SERBIA City24 SWEDEN Roadshow, Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen 23
Slide 24: Mascus: International status and future markets
Mascus: International status and future markets MASCUS IN 2009 2010 2011 Europe • Scandinavia • Italy • Turkey • Bulgaria • Central Europe • Spain • Croatia • UK & Ireland, ia. • Russia Asia/ • Australia • China • South Korea • Thailand • Philippines Oceania • Parts of Indonesia • Taiwan • India • V
Slide 25: Renewal
Strategic cornerstone Renewal
Slide 26: Boosting innovations
Boosting innovations 2007 2008 2009 2010 Innovation vision Objectives and Future Media 2015 Innovation Innovation guidelines – idea project processes in all workgroup k Renewall index R i d for entire staff business units adopted Initiative system Rewards Active ”Helmi” system supporting communicati
Slide 27: Chaining operations
Strategic cornerstone Chaining operations
Slide 28: Synergistic network organisation
Synergistic network organisation HIGH HIGH Group structure Structure of with centralised synergistic network Capability of management organisation managing the entity and exploit synergies & Process and systems unity Group structure with decentralised management LOW LOW Sensitivity to customer needs
Slide 29: Chain operation as model for internal cooperation
Chain operation as model for internal cooperation 2009 2012 Centralisation and TARGET: reorganisation of printing and di t ib ti operations distribution ti J i t development Joint d l t projects j t Increased content Radical changes in structures cooperation and operating models Increased online adv
Slide 30: Cooperation with other publishers
Cooperation with other th publishers bli h P i ti material Printing t i l purchases h Printing Distribution Research programmes Newspaper printing facilities in Finland, 2009 Roadshow Dec2009 / Rauno Heinonen & Tuomas Itkonen Roadshow, 30
Slide 31: Content strategy
Content strategy
Slide 32: Towards new breed of content and services
Towards new breed of content and services NEW SERVICES AND SERVICE • Strong media brands CONTENT support operational DEBATE expansion new kind of ENTER- services and content TAINMENT NEWS CONTENT