Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Presentation (February 2024)
39 slides from Alma Media Oyj's investor presentation, Feb 1, 2024
Slide 1: Alma Media in the Digital Frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST FY 2023 1
Slide 2: Alma Media in numbers
Alma Media in numbers * All figures FY 2023 2
Slide 3: Strong market position and leading brands in key areas
Strong market position and leading brands in key areas RECRUITING #1 Czech Republic prace.cz, jobs.cz #1 Slovakia profesia.sk 1 #1 Croatia mojposao.net #3 Finland jobly.fi 1 #1-2 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia
Slide 4: Two decades of digital transformation
Two decades of digital transformation 2023 and beyond 2020−2022 Towards advanced platforms 2015−2020 More balanced 2010−2015 business portfolio Acceleration of growth utilising the 2005−2010 Growth and possibilities of internationalisation digital Online becomes of digital services significant Sale
Slide 5: Continuing the renewal of portfolio – net investments over MEUR 200
Continuing the renewal of portfolio – net investments over MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS Techloop Alma Mediapartners (35%) Nettix AutoJerry Kolektiv Alma Career (17%) Toimitilat.fi Katsastushinnat.fi DIAS (80%) Netello (60%) DOKS
Slide 6: Digital transformation
Digital transformation 2023 MEUR MEUR 82 % 400 90% 350 80% 70% 300 11 23 60% 250 17 Services 50% Digital 200 40% Print 251 150 30% Digital rate 247 100 20% 50 10% 42 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 7: Digital transformation and change in business mix driving operational gearing
Digital transformation and change in business mix driving operational gearing REVENUE ADJUSTED OPERATING PROFIT MEUR MEUR 2023* 82.4 % 90% 2023* 25.0 % 80% 24.2 % 11 22 70% 20.0 % 95 60% 15.0 % 50% 251 40% 2014 10.0 % 32.0 % 30% 2014 7.2 % 20% 5.0 % 179 10% 42 21 74 0% 0.0 % 2014 2023* 2014 2023* Pr
Slide 8: Balanced portfolio
Balanced portfolio Marketplaces 46% MEUR 141 The share of digital Markkinapaikat 99% digital 46 % business 141 M€ (Digitaalista 99 %) 82.4 % Media 34% 305 M€ Media 34 MEUR 104 M€103 % EBITDA (%) 61% digital (Digitaalista 62 %) 29.7 % Palvelut Services 20 20% % 60 M€ 60 MEUR (Digitaalista 79% digital
Slide 9: Q4 & FY2023 Highlights
Q4&FY2023 Adjusted operating profit up by 10%, revenue on par with Highlights the comparison period in Q4 REVENUE (MEUR)* ADJUSTED OPERATING PROFIT (MEUR) (% OF REVENUE) -0.9 % 9.7 % 21.5 % 19.9 % 19.4 % 78 79 78 15.5 15.2 16.7 Q4 2021 Q4 2022 Q4 2023 Q4 2021 Q4 2022 Q4 2023 • Solid performance desp
Slide 10: Efficiency measures improved operational profitability
Efficiency measures improved operational profitability REVENUE Q4 2023 (MEUR) ADJUSTED OPERATING PROFIT Q4 2023 (MEUR) 1.5 -1.7 0.8 -0.4 -1.6 0.9 0.3 0.8 78.7 78.0 15.2 16.7 Q4 2022 Alma Alma Alma Non-allocated Q4 2023 Q4 2022 Alma Alma Alma Shared Q4 2023 Career Consumer Talent and Career Consumer
Slide 11: Share of digital business continued to grow
Share of digital business continued to grow SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 82% 57 % 77% 69% 66% 61% 63% 58% 59% 41 % 51% 53% ** 39 % 40 % 16 % 15 % 5% 3% 2% 1% 0% 1% 82 91 100 125 146 160 165 158 212 250 251 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 12: Alma Career
Alma Adjusted operating profit increased due to cost savings Career in Q4 REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY Q4/2023 OPERATING MARGIN (%) (REVENUE CHANGE IN BRACKETS) 43.1 % 43.8 % Czech Rep., 54% (-8.0%) * 39.9 % 37.0 % 30.8 % Slovakia, 19% (+34.2%) Croatia, 10% (+14.5%
Slide 13: Invoicing & revenue recognition in Alma Career
Invoicing & revenue recognition in Alma Career 18,000 16,000 14,000 12,000 KEUR 10,000 8,000 6,000 4,000 2,000 - 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2020 2021 2022 2023 Revenue Invoicing KPIs (monthly averages in thousands) 2023
Slide 14: Alma Consumer
Alma Profitability was hit by a decline in advertising sales and Consumer investments in product development in Q4 REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q4/2023 ADVERTISING SALES REVENUE OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) (MEUR)* 21.8 % 23.4 % 13.1 12.5 21.2 % M
Slide 15: Alma Talent
Alma Adjusted operating profit up by 15.3% in Q4, driven by yet Talent again, a stellar performance in Talent Services REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q4/2023 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 23.9 % 22.8 % 20.5 % 20.3 % 20.1 % Alma Talent Media 53%
Slide 16: Solid Financial Position
SOLID FINANCIAL POSITION
Slide 17: Alma Media's long-term financial targets
Alma Media's long-term financial targets* * https://www.almamedia.fi/en/newsroom/ REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO 19.6 23.8 24.1 22.2 2.3 19.8 19.7 12.1 1.6 1.6 0.3 -1.8 -1.2 -0.2 -8 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Rep
Slide 18: Financial position balancing and deleveraging continuing
Financial position balancing and deleveraging continuing NET DEBT (MEUR), GEARING (%) & EQUITY RATIO (%) Q4/2020–Q4/2023 160% 132% 109% 102% 94% 81% 82% 69% 73% 63% 59% 65% 41% 46% 48% 43% 46% 46% 39% 42% 29% 33% 35% 33% 31% -4% 39 222 204 182 157 164 154 143 128 160 151 146 -9 Q4 20 Q1 21 Q2 21 Q3
Slide 19: Solid cash flow
Solid cash flow OPERATING CASH FLOW OPERATING CASH FLOW BRIDGE 2022–2023 79,2 0,4 7,2 4,5 MEUR 4,8 63,0 0,1 15.3 15.4 16.1 19.6 24.5 27.3 17.0 17.3 17.6 20.7 9.8 13.0 19.6 2022 Adjus ted Ta xes paid Net i nterest Cha nges in Other 2023 EBITDA pa i d worki ng ca pi tal Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q
Slide 20: Good and solid financial position enabling investments totalling MEUR 26
Good and solid financial position enabling investments totalling MEUR 26 CAPEX, LEASES, M&A Q4/20-Q4/23 DEPRECIATIONS Q4/20-Q4/23 ROI* (%) 2020-2023 MEUR 190 35 180 4 22 30 28.6 20 18 83 2 25 64 22.0 16 82 178 14 18.5 19.0 63 14 0 -1 -1 20 18.6 19.0 12 2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 16.3 10 15.1
Slide 21: Earnings per Share and Board's Dividend Proposal
Earnings per Share and Board’s Dividend Proposal EARNINGS PER SHARE DIVIDEND PER SHARE EFFECTIVE DIVIDEND YIELD* 1.13 0.44 0.45 6.3 % 0.40 0.88 0.35 0.35 5.0 % 4.7 % 4.7 % 4.4 % 0.30 4.0 % 0.69 3.3 % 3.4 % 3.2 % 3.2 % 0.24 0.51 0.51 0.53 0.39 0.16 0.12 0.12 0.19 0.20 0.12 *Di vi dend/share adjusted
Slide 22: Operating Environment
OPERATING ENVIRONMENT
Slide 23: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Slower growth in operating Digitalisation continues to Digital legislation increases. Geopolitical tensions elevated. countries. High inflation and change consumer beha
Slide 24: Ukrainian crisis
Ukrainian crisis • Russia’s aggressive invasion to Ukraine, brought severe economic and business consequences: • Significantly higher energy prices and inflation • Lower economic growth in Europe • Increased volatility and insecurity • Disruptions in financial markets and supply chains due to sancti
Slide 25: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Latest Alma Media operating countries’ updates GDP change (%) Inflation (%) Unemployment (%) 2024 2023 2024 2023 2024 2023 Bosnia & Herz 2.0* 1.5* 3.5* 6.5* n/a 15.3** Croatia 2.6 2.6 2.5 8.4 6.2* 6.5* Czechia 1.1 -0.4 2.9 12.0 2.
Slide 26: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 12/2022–12/2023 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-12/2023 Source: Kantar TNS (1-12/2022)* Source: Kantar TNS 15% A-LEHDET Other 1% (1%) 10% 15% (15%) 5% Keskisuomalainen 0% 3% (3%) ALMA MEDIA 35% (37%) -5% App
Slide 27: The Finnish housing market update 2023
The Finnish housing market update 2023: A challenging year for the housing trade — a turn for the better in Q4. Trade volumes Full year Full year Etuovi.com Q4 2023 Vuokraovi.com Q4 2023 2023 2022 (Housing marketplace) (Rental housing) Used Active listings Active listings 1.7% 18.5% apartments (chan
Slide 28: The Finnish mobility update
The Finnish mobility update: Easening component shortages – registrations still behind the long-term averages Cars & mobility Full year 1-12/ Nettiauto Q4 2023 1-12/ market 2023 2022 2022 New cars Sold cars, total 7.1% -17% 4.9% -10% Used cars Gross Market 4.1% -11% 4.9% -1% value of sales Source: A
Slide 29: Sustainability as an integral part of our strategy
Sustainability as an integral part of our strategy Alma Media has gained international recognisitionby its ambitious work for climate and responsible business. ENVIRONMENTAL Alma Media has significantly cut down its carbon footprint in the - Minimising CO2 emissions in own last few years operations
Slide 30: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 31: Alma Media changes its segment structure
Alma Media changes its segment structure • Alma Media new segment structure from 1 March 2024: o Alma Media's business segments Alma Career, Alma Marketplaces and Alma News Media. • The purpose of the segment structure reform is to accelerate the implementation of the Group strategy and increase tra
Slide 32: Business segments from March 2024
Business segments from 1 March 2024 FY 2023 pro forma ALMA CAREER ALMA NEWS MEDIA ALMA MARKETPLACES Vesa-Pekka Kirsi Juha-Petri Loimovuori Santtu Elsinen Leading Job boards in 11 CEE Leading digital news media in Leading marketplaces in real countries. Recruitment the Finnish market. Pioneer in esta
Slide 33: Alma Media strategy
Alma Media strategy TRANSFORM THE CORE 1. • Continue to diversify from media to marketplaces and digital services • Develop marketplaces towards advanced digital platforms • Maximise group synergies through efficient co-operation GROW IN DIGITAL 2. • Diversify and develop new revenue streams in curr
Slide 34: Alma Media Strategy: Synergy creation
Alma Media Strategy Synergy creation Alma Media concentrates on recruitment, housing and commercial property, mobility, media and information services with synergies: • By utilising the reach of media platforms, directing user Shared traffic and commercialising the user data for growing high AUDIENC
Slide 35: From classified advertising to transactions
From classified advertising to transactions Entering larger potential market and enabling new revenue sources B U Y E R S SEARCH EVALUATE NEGOTIATE OWNERSHIP & & & Close & PROVIDE MARKET CLOSE CRM S E L L E R S , B 2 B PA R T N E R S ADVERTISING TRANSACTIONS We further develop and We help to streaml
Slide 36: Outlook for 2024
Outlook For 2024 Announced on 16 February 2024 • Alma Media expects its full-year revenue and adjusted operating profit of 2024 to remain at the 2023 level. • The full-year revenue for 2023 was MEUR 304.9 and the adjusted operating profit was MEUR 73.6. • The outlook is based on an estimate that the
Slide 37: Closing remarks
Closing remarks • Digital transformation has led to a well-balanced and synergistic business mix and to market leadership in chosen areas • The digital journey continues towards advanced platforms • Leveraging the best of current Alma Career products by expanding into new markets: building one unifi
Slide 38: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Friday, 15 March 2024: Financial Statements, Report by the Board of Directors, Auditor’s Report, Remuneration Report and Corporate Governance Statement for financial year 2023 • Friday, 5 April 2024: The Annual General Meeting • Fri
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