Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2010)
34 slides from Sanoma Oyj's investor day presentation, Oct 12, 2010
Slide 1: Merging media platforms: Taking Sanoma Magazines further
Merging media platforms Taking Sanoma Magazines further Eija Ailasmaa, President & CEO
Slide 2: Sanoma Magazines at a glance
Sanoma Magazines at a glance State of affairs of the company
Slide 3: After VNU acquisition, seamless merger to create a European magazine champion
After VNU acquisition, seamless merger to create a European magazine champion Based on 2008 figures; Burda: Verlag Inland and Verlag Ausland; Lagardère Active: magazines only; G+J: excluding printing facilities, including distribution; Bauer: aggregated group sales. CMD 2010 / Eija Ailasmaa 3
Slide 4: Starting from the core, expanding to Central and Eastern Europe
Starting from the Expanding to Central core and Eastern Europe CMD 2010 / Eija Ailasmaa
Slide 5: Now developing market leadership in seven European countries
Now developing market leadership in seven European countries CMD 2010 / Eija Ailasmaa 5
Slide 6: Combining the strongest local brands and renowned international brands
Combining the strongest local Transferring concepts across brands & renowned markets international brands CMD 2010 / Eija Ailasmaa
Slide 7: Magazine brands transcend the printed product
Magazine brands transcend Activating the power of the printed product communities CMD 2010 / Eija Ailasmaa
Slide 8: Leading to nearly a decade of growth
Leading to nearly a decade of growth (Net sales development in €M)* € 1.400 € 1.200 307 283 € 1.000 212 248 211 112 127 138 217 223 € 800 186 188 186 184 189 212 € 600 161 168 175 184 193 203 206 199 € 400 520 508 506 508 500 506 516 493 € 200 €0 ACT 2002 ACT 2003 ACT 2004 ACT 2005 ACT 2006 ACT 2007
Slide 9: 2009 was a rough year for growth, 2010 shows stability and strong EBIT growth
2009 was a rough year for growth, 2010 shows stability and strong EBIT growth ‘09: in a storm, any port will do • Due to the recession media € 1,400 budgets were cut, putting €1,246.8M € 1,200 €1,111.2M -10.9% huge pressure on advertising 232.2 € 1,000 212.3 -4.9% sales € 800 205.6 198.8 -3.3% 306.7
Slide 10: Sales improve gradually, EBIT improves strongly after restructuring measures
Sales improve gradually, EBIT improves strongly after restructuring measures in €M 4-6/10 4-6/09 change 1-6/10 1-6/09 change 1-12/09 Net sales 280.6 275.9 1.7% 540.5 538.1 0.5% 1,111.2 Operating profit excl. major non-recurring 38.4 31.5 21.9% 64.2 47.1 36.5% 113.4 capital gains % of net sales 13.7
Slide 11: Restructuring measures focused on efficiency
Restructuring measures focused on efficiency No. of magazine titles published No. of FTE’s, ultimo 400 6,200 350 6,000 5,948 5,900 300 5,800 5,749 5,732 5,666 250 5,609 5,600 5,499 200 5,419 5,389 5,400 5,339 5 ,331 5,330 344 150 295 5,210 5,191 5,200 100 5,000 50 4,800 0 8 0 /0 /1 Jan-Dec/08 Jan-De
Slide 12: Focus on key brands proves successful
Focus on key brands proves successful Net sales (index) EBIT (index) 2006 2007 2008 2009 2006 2007 2008 2009 CMD 2010 / Eija Ailasmaa 12
Slide 13: Sample of latest developments demonstrate market dynamism
Sample of latest developments demonstrate market dynanism • Launches: – Sensa in DE, RO (trial), UA and SI – autóMAGAZIN in HU – iPad editions Cosmopolitan (RU), NU.nl (NL), AutoWeek (NL) and Loving You (BE) – New editions Pink Ribbon magazine (NL, BE) and Pink Ribbon magazine TV (BE) – Several iPho
Slide 14: Developing our strong position in consumer media further
Developing our strong position in consumer media further
Slide 15: Secure leading market positions in consumer magazines
Secure leading market positions in consumer magazines Maintain strong position in magazines • Consolidation • Keep key brands healthy • Expand key brands across media • Active portfolio management Develop custom media • Grow existing business • Consolidate market positions if possible Optimize print
Slide 16: Engaging consumers wherever they are
Engaging consumers wherever they are Vertical Portals Mobile Apps Augmented (e-) books Magazines Reality Events Audiovisual content Tablet Apps Custom Publishing First row: Nök Lapja cookbook, NLCafé.hu portal, Olcóbbat iPhone app, Goedele and LINDA. Magazine, StyleToday layar app, Second row: De XI
Slide 17: The post-recession shift of ad spend to online seems to occur faster than expected
The post-recession shift of ad spend to online seems to occur faster than expected last year Online advertising expenditure (€M) € 3,500 € 3,273 € 3,000 € 2,888 € 2,651 € 2,500 € 2,507 € 2,239 € 2,273 € 2,000 € 2,017 € 1,771 € 1,798 € 1,723 € 1,500 € 1,000 This year, PwC foresees approximately €600M
Slide 18: Overall online advertising shows double-digit growth, although rates vary heavily per country
Overall online advertising shows double-digit growth, although rates vary heavily per country Online advertising €M) CAGR’10-’13 € 3,500 50 36.0% 201 10.2% € 3,000 37 181 25.2% € 2,500 25 161 1064 19 148 870 € 2,000 15 136 701 140 13.4% 556 122 433 105 438 9.4% € 1,500 85 91 411 345 378 13.4% 306 31
Slide 19: Digital media development through international leverage
Digital media development through international leverage Reach Digital Media: 76%, aged 13+ Reach Digital Media: 79%, aged 15+ Reach Digital Media: 78%, aged 15+ Sources: STIR, August 2010; Ipsos – Gemius SA, Fusion Data, June 2010; Gemius, August 2010 CMD 2010 / Eija Ailasmaa 19
Slide 20: Digital media contains online services and related mobile media
Digital media contains online services and related mobile media Online Services Mobile Media iPhone/Smart Phone Apps iPad/Tablet Apps CMD 2010 / Eija Ailasmaa 20
Slide 21: We have expanded our geographical organization with a functional focus on digital media
We have expanded our geographical organization with a functional focus on digital media Sanoma Magazines Sanoma Sanoma Sanoma Sanoma Magazines Chief Digital Media Uitgevers Magazines Belgium Magazines Finland International • Cluster Adriatic Region • App Factory (Budapest) • Cluster Russia/CIS • Clu
Slide 22: Continuing our digital strategy of 'moving out of the middle'
Continuing our digital strategy of ‘moving out of the middle’ engagement awareness conversion CPM custom non-spot txt/CPC publishing CPL CPS CMD 2010 / Eija Ailasmaa 22
Slide 23: Aiming for market leadership in identified strategic areas and mobile publishing
Aiming for market leadership in identified strategic areas and mobile publishing Align with/contribute to Sanoma Group ambition • Strengthen position in price and services comparison • Selectively acquire positions in verticals and classifieds • Safeguard positions in directories, pursue growth opti
Slide 24: Priorities determined on market position and level of maturity
Priorities determined on market position and level of maturity PRIORITY THEMES • Comparison • Mobile: tablet publishing • Selected classifieds • Directories • Women’s themes LEAD COUNTRIES ROLL-OUT TO OTHER GEOGRAPHIES • (Bulgaria) • Copy concepts • Hungary • Learn from ‘mature’ companies • Re-use t
Slide 25: Stepping up efforts in mobile media
Stepping up efforts in mobile media • Getting on the learning curve • Piloting and copying successful concepts • Opportunity to bridge magazine skills & USPs with digital media • Combination of aspirational/inspirational magazine features with technology features offers something extra
Slide 26: Two-pronged media business model needs to transition to digital space
Two-pronged media business model needs to transition to digital space Paid content expected to Advertising alone grow to 10-25% in B2C is not sufficient publishing New user interfaces, interactivity, dedicated Differentiation in product Paid content offerings services, product offerings offerings ba
Slide 27: Transitioning Sanoma Magazines requires additional skills
Transitioning Sanoma Magazines requires additional skills CONDITIONS FUNCTIONAL COMMERCIAL CAPABILITIES CAPABILITIES •Brands •Copywriting Sales: •Market position •Photography •Affiliate deals •Rights •Graphics •Performance-based •Financial means •Context •Multimedia knowledge •Capabilities •Audio Ma
Slide 28: The mobile ecosystem is a competitive arena crowded with opportunities and threats
The mobile ecosystem is a competitive arena crowded with opportunities & threats Developers create apps: After development, apps are published through small & large companies, digital stores on mobile devices people in attics... publishing costs Non-traditional companies act as cashier and collect c
Slide 29: With the right brands, mobile media adoption is lightning fast
With the right brands, mobile media adaption is lightening fast • NU HD iPad app (NU.nl news): – Launch date: July 22 (release iPad device in NL: July 23) – Downloads: >65,000 – Pageviews: 7,000,000/month (August 2010) • NU.nl smart phone apps: – NU iPhone app downloads: >425,000 – NU Android app do
Slide 30: Hungarian apps factory leads the way to international leverage of apps production
Hungarian apps factory leads the way to international leverage of apps production • Sanoma Magazines World Cup Soccer 2010 iPhone app – In iTunes App store in time for kick-off – Seven languages including English and German – Worldwide release – One-off development costs; free re-use – No. 1 in iTun
Slide 31: Entrepreneurship, trial-and-error and first successes with iPhone apps in eight countries
Entrepreneurship, trial-and-error and first successes with 36+ iPhone apps, in eight countries From left to right, top to bottom: Vedomosti (RU), The Moscow Times (RU), Popular Mechanics (RU), Bucătăria de Azi (RO), FHM World Cup 2010 (RO), Startpagina (NL), AutoTrader (NL), NU.nl (NL), Kick’r (SI),
Slide 32: Magazines and digital are converging in tablet publishing
Magazines and digital are converging in tablet publishing in a tactile way • The first Sanoma iPad magazine • The first Cosmo on iPad in the world • THE FIRST SANOMA IPAD MAGAZINE • THE FIRST COSMO ON IPAD IN THE WORLD • NU.nl: advertising-funded COSMO Russia: free app, AutoWeek NL: free app, in-app
Slide 33: Potentially offering advertisers unique and attractive propositions
Potentially offering advertisers unique and attractive propositions CMD 2010 / Eija Ailasmaa 33
Slide 34: CMD 2010 / Eija Ailasmaa
ldal Aad Sanoma CMD 2010 / Eija Ailasmaa MAGAZINES