Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Shareholder Meeting (March 2014)
38 slides from Alma Media Oyj's shareholder meeting presentation, Mar 20, 2014
Slide 1: Review by the CEO
Review by the CEO Annual General Meeting of Alma Media Corporation 20 March 2014
Slide 2: Contents
Contents • Alma Media in 2013 • Strategy implementation • Markets in 2013 • Financials 2013 • 2014 and beyond 2 March 20, 2014
Slide 3: Alma Media in 2013
Alma Media in 2013 The weak general economic development had a negative 01. effect on the economic development of the media business. In a weak market, ad spend decreased. The shift from traditional media to digital channels accelerated. Digital media development projects were successful. 02. Intern
Slide 4: Strategy implementation
Alma Media in 2013 Strategy implementation
Slide 5: Key strategy elements
Key strategy elements Increase digital Growth from advertising and digital services content revenue Secure vitality of print newspaper business 5 20.3.2014
Slide 6: Key strategy elements 1/3
Key strategy elements 1/3 Secure vitality of print newspaper business • Improve quality and efficiencies in regional media through editorial office collaboration • New printing facility in use, external print jobs • Distribution optimisation and reorganisation 6 20.3.2014
Slide 7: Renewal to improve newspaper competitiveness
Renewal to improve newspaper competitiveness Major renewal projects at Aamulehti • New mobile service and Premium subscription model at turn of the year 2013– 2014 • Tabloid format from April 1, 2014, at the same time renewed Aamulehti.fi expands online news offering and opens an extended news packa
Slide 8: Necessary replacement investment in printing competitiveness
Necessary replacement investment in printing competitiveness New printing facility in Tampere • After ramp-up, the facility is well up to speed, with 5 million copies printed per week. • In addition to Alma Media newspapers, the facility prints Hämeen Sanomat and several Talentum publications, among
Slide 9: Key strategy elements 2/3
Key strategy elements 2/3 Increase digital advertising and content revenue • Increase digital content revenue through new subscription models • Increase online and mobile advertising through expanding the offering • Develop web television 9 20.3.2014
Slide 10: Continuous effort to increase domestic digital growth
Continuous effort to increase domestic digital growth 2013 success highlights: • Mobile apps for Kauppalehti, Iltalehti and Aamulehti • Mobile apps for Telkku.com and Etuovi.com • Kotikokki.net modernisations • Launch of Fiidi.fi service • Regional online content paywall experiments • Audience-targe
Slide 11: Key strategy elements 3/3
Key strategy elements 3/3 Growth from digital services • Develop international recruitment services network • Market leadership for domestic marketplaces • Develop business information services 11 20.3.2014
Slide 12: International business growing
International business growing NEWS LIFESTYLE BUSINESS CAREER Other 14% BUSINESS LIFESTYLE CAREER Revenue breakdown 0% 2013 CAREER Finland 86 % 36 41 13 15 18 2009 2010 2011 2012 2013 Revenue outside Finland, MEUR 12 March 20, 2014
Slide 13: International investment and partnerships for digital growth
International investment and partnerships for digital growth 2013: Alma Media and Monster Worldwide decided to intensify their recruitment collaboration in Eastern Central Europe. • New countries on Alma Media’s map: Poland and Hungary • Monster becomes minority shareholder in Alma Career (manages a
Slide 14: Digital business growing
Digital business growing 90 28,1 % 30% 80 24,3 % 25% 70 60 18,0 % 20% 50 15,7 % 12,9 % 13,1 % 15% 40 85 78 30 10% 57 49 20 44 40 5% 10 MEUR 0 0% 2008 2009 2010 2011 2012 2013 Verkkoliiketoiminnan Secure vitality of printliikevaihto newspaper business Osuus Shareliikevaihdosta of total revenue 14 Mar
Slide 15: 5 businesses on a digital journey
5 businesses on a digital journey ALMA DIVERSO ALMA MARKETPLACES 300 Group revenue 2013, EUR million KAUPPALEHTI GROUP ALMA REGIONAL MEDIA IL-MEDIA Share of digital in business unit revenue 15 March 20, 2014
Slide 16: Sustainable Media – corporate responsibility programme 2013
Sustainable Media – corporate responsibility programme 2013 • We launched the concept of “brainprint” in Finland and introduced constructive journalism into public discussion. • Our long-term environmental work was recognised: Alma Media is the only media company among the best Nordic companies in t
Slide 17: Nobody has a certain prediction for the future. Renewal requires plenty of experimenting.
Nobody has a certain prediction for the future. Renewal requires plenty of experimenting.
Slide 18: Markets in 2013
Markets in 2013
Slide 19: Advertising volume reflects economic cycles
Advertising volume reflects economic cycles 15% 10% 5% 0% -5% -10% -15% -20% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual GDP change Annual advertising volume change Sources: Statistics Finland (GDP change 2013 estimat
Slide 20: Change in media advertising by type of media
Change in media advertising by type of media MEUR 800 Newspapers Magazines 700 Printed catalogues 600 Television Online 500 Radio 400 Cinema Out-of-home 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20 March 20, 2014
Slide 21: Advertising share of GDP at record low
Advertising share of GDP at record low 1 0,9 0,8 0,7 0,6 % *estimate 21 March 20, 2014
Slide 22: Financials 2013
Financials 2013
Slide 23: Revenue and operating profit 2009–2013
Revenue and operating profit 2009–2013 Revenue, MEUR Operating profit, MEUR IFRS IFRS -27,8% -6,2% 350 50 300 311,4 316,2 320,1 43,9 307,8 300,2 40 42,9 42,6 250 30 33,5 2,8 200 20 24,2 150 10 100 50 0 -2,2 -0,5 -1,0 0 -7,0 -10 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Kertaluonteiset Non-re
Slide 24: Interest-bearing debt
Interest-bearing debt Net debt Q2/2011-Q4/2013 120 100 103,5 104,1 101,4 97,6 80 60 62,3 MEUR 40 20 0 -20 -32,3 -40 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 24 March 20, 2014
Slide 25: Earnings per share and equity per share
Earnings per share and equity per share 0,50 1,4 1,17 0,22 0,40 0,20 1,2 1,08 0,30 1,0 0,46 0,37 0,20 0,38 0,8 0,10 0,23 0,6 0,00 0,4 -0,03 0,70 0,70 -0,16 0,2 -0,10 -0,20 0,0 2012 2013 2012 2013 Non-recurring items Retained earnings EPS wo non-recurring items Restricted equity
Slide 26: Distribution of profit 2006–2013
Distribution of profit 2006–2013 Dividends* and effective dividend yield 2006 2007 2008 2009 2010 2011 2012 2013 Dividend*, EUR 0.65 0.90 0.30 0.40 0.70 0.40 0.10 0.10 Effective dividend yield 7.7% 6.1% 5.3% 5.3% 8.5% 6.5% 2.2% 3.3% * dividend and capital repayment combined Proposal for distribution
Slide 27: 2014 and beyond
2014 and beyond
Slide 28: Long-term financial targets
Long-term financial targets Alma Media’s 2011 2012 2013 Target financial targets level Growth in digital 16.3% 36.8% 8.4% > 15% business Return on investment 26.1% 13.8% 10.1% > 15% ROI, % Dividend payout 103% 45% 50%** > 50% ratio* * Including capital repayment to shareholders. ** Based of the Boar
Slide 29: Evolution may not be enough.
Evolution may not be enough. Rapid changes in technology and consumer behaviour require reallocation of resources and focus on new products and services. We also need the courage to relinquish some things we have done before.
Slide 30: Strategy implementation focus in 2014
Strategy implementation focus in 2014 Multi-channel Marketing Resources and Digital services content solutions competensies We build new competencies, seek efficiencies and accelerate growth in digital services and media. 20.3.2014
Slide 31: We are building a round-the-clock media consumption experience
We are building a round-the-clock media consumption experience based on extensive analysis of our customers’ preferences and media usage.
Slide 32: Case moving image
Multi-channel content Case moving image • IL-TV is Finland’s largest online TV • In February 2014, 530,000 separate visitors, in 2nd week of March, 3.8 million video clicks • Strong growth in advertising: ability to sell precise target groups to advertisers and improve measurability • Versitile cont
Slide 33: Case mobile advertising
Marketing solutions Case mobile advertising • Smartphone ubiquity makes mobile the fastest-growing digital display advertising sector also with Alma Media. • The market almost quadrupled to €10m in 2013, and the growth continues. • Advertising solutions improve along with analytics and targeting pos
Slide 34: We need to create a multi-faceted service portfolio
We need to create a multi-faceted service portfolio to disperse risk and increase success possibilities.
Slide 35: Case home services
Digital services Case home services • Etuovi.com is changing from a home sales marketplace into a wide range of home and living services. • Service offering already includes interior design. • Advertisers and consumers have adopted the extended service offering, diversifying the earnings of the mark
Slide 36: By the year 2020, 50% of Alma Media's revenue comes from digital.
By the year 2020, 50% of Alma Media’s revenue comes from digital.
Slide 37: Today's media business is not for the weak of heart.
Today’s media business is not for the weak of heart. It is a constant balancing act between existing business and new growth that includes a substantial risk element. Creating sustainable growth requires excellent understanding of consumers’ rapidly changing behaviour patterns and continuous innovat
Slide 38: Thank you!
Thank you! LIVING INFORMATION