Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2010)
30 slides from Sanoma Oyj's investor day presentation, Oct 12, 2010
Slide 1: New learning solutions
New learning solutions Jacques Eijkens President and CEO, Sanoma Learning & Literature Sanoma Capital Markets Day 12 October 2010
Slide 2: Sanoma Learning & Literature: Developing its future
Sanoma Learning & Literature: Developing its future Content of the presentation: 1. 2. 3. 4. Our business Changes in the Our response: What makes today and our customer needs New solutions, us amongst objectives for of the Learning inspired by the winners? the future markets teacher workflow CMD 201
Slide 3: Our business today and our objectives for the future
Our business today and our objectives for the future Changes in the Our response: What makes customer needs New solutions, us amongst of the Learning inspired by the winners? markets teacher workflow CMD 2010 / Jacques Eijkens 12.10.2010 3
Slide 4: Our division is developing internationally and operates in 14 countries
Our division is developing internationally and operates in 14 countries Sanoma Learning & Literature Learning Language services Literature & other Net sales 2009: € 239 Million Net sales 2009: € 27 Million Net sales 2009: € 89 Million Personnel 2010: 1701 Personnel 2010: 400 Personnel 2010: 513 • Ma
Slide 5: We serve our customers in their knowledge, competence, performance, communication and personal development related needs
We serve our customers in their knowledge, competence, performance, communication and personal development related needs We want to be among top 3 in European Learning industry We want to be among top 10 in global Language industry We want to be the preferred number one in Finnish literature CMD 201
Slide 6: We are going to achieve growth: by transformation and by acquisitions
We are going to achieve growth: by transformation and by acquisitions Transformation • Building solutions, by developing new digital content, learning platforms and additional services • Gaining efficiency, by process re-engineering • Applying new technologies, bringing value to customers • Increasi
Slide 7: Changes in the customer needs of the Learning markets
Changes in the customer needs of the Learning markets Our business today Our response: What makes and our objectives New solutions, us amongst for the future inspired by the winners? teacher workflow CMD 2010 / Jacques Eijkens 12.10.2010 7
Slide 8: We expect commoditisation of content
We expect commoditisation of content
Slide 9: We expect that the availability of well qualified teacher time will become increasingly scarce
We expect that the availability of well qualified teacher time will become increasingly scarce Shortage of qualified teachers • Demographics of teachers • Interest in profession Need for personalised learning • Heterogeneity of classes, different pace and styles of learning, larger groups of pupils
Slide 10: We expect the future will be about learning outcomes rather than inputs
We expect the future will be about learning outcomes rather than inputs CMD 2010 / Jacques Eijkens 12.10.2010 10
Slide 11: We expect the market of learning materials will not grow, so we will 'follow the money'
We expect the market of learning materials will not grow, so we will ‘follow the money’ to grow the learning business 1–5% This money will Learning materials 25% have increasingly Others abundant sourcing 20–25% Infrastructure options 25% Preparing/ marking WE WILL BE ADDING VALUE HERE 75% Staff sal
Slide 12: So we have to be solving:
So we have to be solving: Scarcity of time: WORKFLOW EFFICIENCY PERSONALISED LEARNING • improving efficiency by automating all kinds of workflows Ambition of raising the learning outcomes: • provide insights to support intervention that improves the results CMD 2010 / Jacques Eijkens 12.10.2010 12
Slide 13: Our response: New solutions, inspired by teacher workflow
Our response: New solutions, inspired by teacher workflow Our business today Changes in the What makes and our objectives customer needs us amongst for the future of the Learning the winners? markets CMD 2010 / Jacques Eijkens 12.10.2010 13
Slide 14: We are transforming our offering towards solutions to serve teacher in all phases of the teaching cycle
We are transforming our offering towards solutions to serve teacher in all phases of the teaching cycle Innovation in three dimensions: Professional Plan Development Year/period • proposition (new functionalities) Prepare Administer • medium Prepare Administer (mix of print and digital) • business m
Slide 15: Digital testing and assessment will be the "killer app" of the future solutions
Digital testing and assessment will be the “killer app” of the future solutions Our learning solutions will combine content, technology, data and labour, to support the teacher by • providing (personalised) learning materials, • automating non-essential teaching tasks, • giving insight into learning
Slide 16: Video: A learning solution year 2010
Video: A learning solution year 2010 • How does it support the teacher? • How does it support intervention that improve the learning outcomes? CMD 2010 / Jacques Eijkens 12.10.2010 16
Slide 17: Evolution to solutions will be driven by innovation on three dimensions
Evolution to solutions will be driven by innovation on three dimensions Proposition Solution WF – Workflow P – Print E – Electronic Content +WF1,2,n l Content ode nM Biz Model +WF1,2 lu tio So Content +WF1 le Tit el d Mo Content Medium P-€ P-€ E-€ P-€ E-€0 E-€ E-€ P-€ CMD 2010 / Jacques Eijkens 12.1
Slide 18: Steadily migrating to an annual online subscription model
Steadily migrating to an annual online subscription model High Low 2000 2025 Proposition Content Solution Business model One off sales Subscription license Medium Print dominant Online dominant CMD 2010 / Jacques Eijkens 12.10.2010 18
Slide 19: What makes us amongst the winners?
What makes us amongst the winners? Our business today Changes in the Our response: and our objectives customer needs New solutions, for the future of the Learning inspired by markets teacher workflow CMD 2010 / Jacques Eijkens 12.10.2010 19
Slide 20: We will benefit from strong brands and positions
We will benefit from strong brands and positions CMD 2010 / Jacques Eijkens 12.10.2010 20
Slide 21: We will capitalise on scale, even though this remains a local business
We will capitalise on scale, even though this remains a local business Conceptual benefits: • developing our business from content to solutions Platform benefits: • developing tools and technology as part of solutions Financial benefits: • synergies in procurement and backoffice IT CMD 2010 / Jacque
Slide 22: We are best positioned as deep understanding of the teaching process is our core competence
We are best positioned as deep understanding of the teaching process is our core competence Multimedia transparencies Multimedia lessons Wall Maps Syllabus Transparencies Geographical Atlas Internet Newsletter Workbooks Multimedia CDs for students Teacher’s Books Class CDs Internet website (forTeach
Slide 23: We will let innovation drive the transformation of our business
We will let innovation drive the transformation of our business 1. Leadership program for management enabling the change 2. Innovation program for all companies to develop our business towards solutions local markets will benefit from ‘group’ experience CMD 2010 / Jacques Eijkens 12.10.2010 23
Slide 24: We are ready for it. We will go for it. We can do it
We are ready for it We will go for it We can do it CMD 2010 / Jacques Eijkens 12.10.2010 24
Slide 25: For better knowledge, better competence, better performance and well being
For better knowledge, better competence, better performance and well being SLL/Jacques Eijkens 12.10.2010 25
Slide 26: Appendixes
Appendixes CMD 2010 / Jacques Eijkens
Slide 27: Our companies have excellent market positions
Our companies have excellent market positions Malmberg, NED WSOYpro, FIN Nowa Era, POL Personnel: ~265 Personnel: ~200 Personnel: ~565 Learning Market position: #3 Market position: #1 Market position: #1 Size of the market: Size of the market: Size of the market: ~ € 300 Million ~ € 85 Million ~€ 13
Slide 28: We are successfully transforming our portfolio
We are successfully transforming our portfolio 120 % 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 Learning Language Literature & other SLL/Jacques Eijkens 12.10.2010 13.10.2010 28
Slide 29: Financially we are on track
Financially we are on track EUR million 4–6/2010 4–6/2009 Ch % 1-6/2010 1-6/2009 Net sales 105.5 101.9 3.5 163.7 162.8 Learning 85.0 81.6 4.2 114.9 112.2 Language services 6.2 6.2 0.0 13.1 14.5 Literature and other 17.2 17.0 1.4 40.8 41.6 businesses Eliminations -2.9 -2.8 -2.9 -5.2 -5.4 EBIT excludi
Slide 30: We serve our customers
We serve our customers in their knowledge, competence, performance, communication and personal development related needs Situation in 2009 Situation in 2009 Situation in 2009 We want to be among top 3 in Learning* Language** Literature *** 1. Sanoma Learning & European Learning industry Pearson HP A