Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Shareholder Meeting (2017)
40 slides from Sanoma Oyj's shareholder meeting presentation, 2017
Slide 1: Sanoma 2016
Sanoma 2016 Susan Duinhoven, President and CEO, Sanoma Corporation
Slide 2: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 3: Sanoma 2016: Operational EBIT back on track
Sanoma 2016: Operational EBIT back on track 250 12% 10% 200 EUR million 2016 2015 8% Net sales 1,639 1,717 150 6% Organic growth 0.1% -3.4% 100 Operational EBIT 168 84 4% Operational EBIT % 10.2% 4.9% 50 2% 0 0% 2012 2013 2014 2015 2016
Slide 4: All three businesses contributed
All three business Composition of net sales 2016 contributed Other Advertising sales Full year operational EBIT, MEUR 14% 100 2015 Learning 36% 80 86 2016 solution 17% 60 sales 64 40 57 50 45 23% 10% 20 0 13 -24 Subscription sales Single copy -20 -38 sales -40 Media Finland Media BeNe Learning Other
Slide 5: 3 businesses across 5 countries
Media 3 businesses across 5 countries Finland Net sales Operational EBIT as % of Net sales EUR 580 million Pia Kalsta 25% 20.1 % 20% Media 15.9 % BeNe 15% Net sales 11.0 % EUR 780 million Peter de Mönnink 10% 8.5 % 7.7 % 5% 2.3 % Learning 0% Net sales Media Finland Media BeNe Learning EUR 280 millio
Slide 6: Sanoma Media Finland: the year of
The year of Media Sanoma Media Finland Finland • Success in BtoB sales • TV viewing share increased Media BeNe • Satisfactory growth in non-print sales • Cost innovation driving profitability • Forming an integrated organisation Learning
Slide 7: Sanoma Media BeNe: the year of
The year of Sanoma Media BeNe Media Finland • Print and online portfolio performing well Media BeNe • Over 1 billion stream starts • Nu.nl again largest Dutch online news site Learning • Expansion of event business • Integration of Belgium and Digital business to Netherlands business
Slide 8: Sanoma Learning: the year of
The year of Sanoma Learning Media Finland • 8% growth in Western Europe • Success with Bingel pushes sales of Media BeNe portfolio • Acquisition of De Boeck in Belgium • Market share gain in Poland, though market declining due to regulation Learning • Profitability improved through cost innovations
Slide 9: Progress in Key Strategic Priorities
Progress in Key Strategic Priorities Fulfil customer Utilise growth Accelerate cost Improve cash needs in selected and digital innovation conversion and media brands and transformation deleverage our domains opportunities business in Learning
Slide 10: Media Advertising Markets improved in 2016
Media MediaAdvertising AdvertisingMarkets Markets improved improvedin in2016 2016 Netherlands FY/15 FY/16 Magazines -13% -7% – The total Media market grew both in the TV +1% -2% Netherlands and in Finland Online +8% +10% – TV in the Netherlands declined as did the Total market +1% +3% viewing time F
Slide 11: Organisation in better spirit
Organisation in better spirit People Power Rating ® 71 - Simplified organizational structure in 70 Group and in each of three SBU’s 69 - Highly professional & dedicated teams 68 - New competences to support 67 69.9 transformation 66 - Employee satisfaction increased in 2016 65 66.4 - In 2016 total F
Slide 12: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 13: Media Finland: Success in B2B sales
Media Finland Success in B2B sales: PICTURE MISSING Growing faster than market
Slide 14: Media Finland: Success in B2B sales
Media Finland: Success in B2B sales Growing faster than market Unique Focus proposition by Customer on the combining centric Sales reach, targeting teams Organisation and creative solutions TV Market B2B sales Sales Share growth grew by grew 4% boosted by 10.6 million when market successful euros gr
Slide 15: Media BeNe: Using Media Data in Health Care Insurance
Media BeNe Using Media Data: In Health Care Insurance
Slide 16: Using Media Data: Health Care insurance
Using Media Data: Health Care insurance Sanoma Media data 1 000 000 key partner for providing people plan to Dutch customer switch per year Healthcare insight Interest profile Data led to 42 % Intent profile generating more led to 64 % interest and conversions on more intent profiles ads in our conv
Slide 17: Sanoma Learning: De Boeck, highly synergetic acquisition
Sanoma Learning De Boeck: highly synergetic acquisition
Slide 18: De Boeck: highly synergetic acquisition
De Boeck: highly synergetic acquisition Target to grow Acquisition of Revenue grew by bolt on De Boeck in from acquisitions Belgium EUR 35m to EUR 53m Synergies Market share Integrated over grew from within 150% of 30% to 40% 12 months acquired EBIT
Slide 19: Sanoma Learning: Growth into adjacent markets
Sanoma Learning Growth into adjacent markets: Safety Training in High risk Industries
Slide 20: Growth into adjacent Learning markets: Safety Training
Growth into adjacent Learning markets: Safety Training in High risk Industries 10 min trainings Expanding into Includes in safety and adjacent areas certification security of (digital) and behavior for learning dashboards operational staff 20 contractors Launch in and 10 asset Rotterdam owners = Har
Slide 21: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 22: Outlook for 2017
Outlook for 2017 Operational EBIT margin (%) 12% Sanoma expects that the 10% Group’s consolidated – Net Sales, adjusted for 8% structural changes, will 6% be stable and 4% – the operational EBIT margin will be 2% around 10% 0% 2012 2013 2014 2015 2016
Slide 23: Transformation continues
Transformation continues Non-print share of sales - 2016 2016: quick wins captured 2017: further completing transformation process • Media Finland: structural changes to the business to be implemented – 49% 54% Media Learning system and process redesign • Media BeNe: Continue expanding the 360 appro
Slide 24: Continued focus on Deleveraging
Continued focus on Net Debt and Leverage Deleveraging 1400 6 1200 1242 100 5 1135 1000 Net debt / EBITDA 4 100 100 800 802 801 786 3 Old target New target 600 2 400 < 3.5 < 2.5 200 1 0 0 2012 2013 2014 2015 2016 Hybrid Net Debt (lhs) Net Debt / EBITDA adjusted (rhs)
Slide 25: Dividend
Dividend Dividend of EUR 0.20 (0.10) proposed for 2016 New dividend policy from 2017 onwards: – increasing dividend – equal to 40–60% of annual cash flow from operations less capital expenditure
Slide 26: Sanoma AGM
Sanoma AGM Markus Holm CFO and COO, Sanoma Corporation
Slide 27: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 28: Summary of 2016
Summary of 2016 • Profitability improved faster than expected • Due to improved cash flow balance sheet strengthened • Significant refinancing was successful
Slide 29: Key figures 2016
Key figures 2016 • Net sales EUR 1,639 million (2015: 1,717), organic growth +0.1 % • Operational EBIT EUR168 million (2015: 84) or 10.2 % of net sales (2015: 4.9 %) • Items affecting comparability EUR 29 million (2015: -207) • Result for the period EUR 116 million (2015: -158) • Cash flow from oper
Slide 30: Media Finland improved results significantly
Media Finland improved results significantly Operational EBIT by quarters, • Organic net sales stable (+0,7 %), EUR million especially TV had a good year 25 • Share of Finnish ad market grew to 28 %, 20 Nelonen’s share of viewing increased to 37 % 19 15 16 • Operational EBIT increased to EUR 50 mill
Slide 31: Media BeNe improved results in all business units
Media BeNe improved results in all business units Operational EBIT by quarters, EUR • Organic net sales (+0.5 %) and market position million stable 35 30 • Operational EBIT increased to EUR 86 million 30 (2015: 64) 25 27 27 • Result improved strongly due to good 20 22 performance of Dutch print & on
Slide 32: Learning grew and improved results clearly
Learning grew and improved results clearly Operational EBIT by quarters, EUR • Organic net sales decreased slightly (-2.5%) million due to change of legislation in Poland 60 50 • Net sales grew in Western Europe (+8%)driven 50 51 40 by curriculum changes, success in digital 41 offering and acquisiti
Slide 33: Share of fixed costs decreased significantly
Share of fixed costs decreased significantly Change of operational fixed costs 950 49 % 50 48 % 900 48 850 48% 44% 800 750 700 929 830 44 % 46 44 714 42 650 600 40 2014 2015 2016 33
Slide 34: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 35: Cash flow improved markedly
Cash flow* improved markedly 140 120 20 100 13 80 19 60 119 28 40 -13 20 81 0 -20 -30 -40 * Cash flow from operations less acquisition of tangible and intangible assets ** EBITDA adjusted for Dutch pension plan change , sales gains/losses of businesses and share of results of JV’s *** Net working ca
Slide 36: Debt reduced, equity ratio improved
Debt reduced , equity ratio Net debt, EUR million improved Net debt/EBITDA* 1400 6 • Net debt was reduced and equity ratio 1200 100 5 1242 improved while the hybrid loan included in 1000 1135 the equity was redeemed 4 800 100 100 802 801 786 3 • Net debt EUR 786 million (801) 600 • Equity ratio: 41.
Slide 37: Long term debt successfully refinanced
Long term debt successfully Break down of debt, 31 December 2016 refinanced • In February 2016 four year EUR 500 million syndicated revolving credit facility was arranged Bond 2017 18 Bond 2019 200 • In May 2016 EUR 200 million of the outstanding Term loan (SBS) 2017 Bond was refinanced with 2019 Bo
Slide 38: Overview of presentation
Overview of presentation 1. Summary 2016 2. Business cases 3. Outlook for 2017 and dividend 4. 2016 financial results 5. Cash flow and funding 6. Sanoma as an investment
Slide 39: Sanoma as an investment
Sanoma as an investment • Leading market position • Stable organic net sales • Significantly improved result • Strong cash flow • Growing dividend
Slide 40: Thank you
.\ Thank you