Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — FY2021 Earnings Presentation
32 slides from Sanoma Oyj's earnings presentation, February 2022
Slide 1: Full-Year Result 2021: Strong growth in net sales and operational EBIT
Full-Year Result 2021: Strong growth in net sales and operational EBIT in both businesses Susan Duinhoven, President & CEO Markus Holm, CFO & COO
Slide 2: FY2021: Strong growth in net sales and operational EBIT in both businesses
FY2021: Strong growth in net sales and operational EBIT in both businesses Net sales Comparable net Operational EBIT Operational EBIT Free cash Net debt / sales growth excl. PPA margin excl. PPA flow Adj. EBITDA 1,252m€ 7% 197m€ 15.8% 140m€ 2.4 (2020: 1,062) (2020: -4%) (2020: 157) (2020: 14.7%) (20
Slide 3: Successful year with strong growth in a pandemic environment
Successful year with strong growth in a pandemic environment Integration of the acquired businesses proceeded successfully Santillana in Spain Regional news media business in Finland Digitalisation continued to support business transformation In Learning, continuing positive impacts especially
Slide 4: Learning: Organic growth and Santillana acquisition drove net sales
LEARNING FY 2021 Organic growth and Santillana acquisition drove net sales… Net sales grew by 28% to 637m€ (2020: 500) – Comparable growth was 7% (2020: 5%), above our long-term target of 2-5% – Santillana contributed 101m€ Learning material sales grew across all markets, strongest growth in Pol
Slide 5: Learning: strong profitability improvement
LEARNING FY 2021 … and resulted in strong profitability improvement Long-term Operational EBIT excl. PPA Solid organic growth and earnings improvement financial targets grew by 40% to 134m€ m€ Margin (2020: 96) following the net 700 25% above sales growth 600 23% 20% – Majority of the improvement
Slide 6: Media Finland: Solid net sales growth
MEDIA FINLAND FY 2021 Solid net sales growth… Net sales grew by 9% to 615m€ (2020: 563), organic growth 7% Solid growth in subscription sales – Number of HS subscriptions grew by 1% y-o-y, more than 70% of HS subscriptions generate digital revenues – Number of Ruutu+ subscriptions grew by 15% y-
Slide 7: Media Finland: corresponding earnings improvement
MEDIA FINLAND FY 2021 …and corresponding earnings improvement Long-term Operational EBIT excl. PPA Solid top-line and profitability development financial targets increased by 10% to 74m€ m€ Margin (2020: 67), margin stable at 700 20% 11.9% (2020: 11.8%) 600 15% 12-14% – Earnings improvement driven
Slide 8: The Board proposes a dividend of 0.54€
The Board proposes a dividend of 0.54€ The Board proposes a dividend of 0.54€ Dividend per share (2020: 0.52) per share to be paid for 2021 € – Representing a total of approx. 88m€ – Yield 4.0% at the end of 2021 To be paid in two parts – 0.27€ on 20 April (record date 11 April) – 0.27€ in Novem
Slide 9: Outlook for 2022
Outlook for 2022… In 2022, Sanoma expects that the Group’s reported net sales will be 1.25‒1.30bn€ (2021: 1.25). The Group’s operational EBIT margin excluding PPA is expected to be between 15−16% (2021: 15.8%). Regarding the operating environment Sanoma expects that: – The continuing coronavirus
Slide 10: Continued solid performance and strong pipeline of acquisition opportunities
….continued solid performance and strong pipeline of acquisition opportunities Learning market curriculum changes: Long-term targets unchanged Growth in Spain in 2022−23 expected to compensate the 2022 decline in Poland Finnish advertising market: Showing Learning continued strength similar to 2
Slide 11: Alex Green appointed as new CFO
Alex Green appointed as new CFO Alex Green will start in his position on 1 March 2022 He will be – responsible for the Group’s Finance Functions – member of Sanoma’s Executive Management Team – reporting to the President & CEO Susan Duinhoven He joins Sanoma from eBay, where he has worked as C
Slide 12: Financials
Financials
Slide 13: 2021: Strong earnings growth driven by organic net sales growth and acquisitions
2021: Strong earnings growth driven by solid organic net sales growth and acquisitions in both businesses Learning + Acquisition of Santillana Operational EBIT excl. PPA FY 2021 vs. FY 2020 + Organic growth across main markets, in m€ particular Poland and the Netherlands Media + Growth in B2B Finlan
Slide 14: Free cash flow improved significantly
Free cash flow improved significantly Free cash flow improved to 140m€ (2020: 95) Operational impacts Free cash flow + Improved EBITDA both in Learning and Media Finland m€ + Solid free cash flow of Santillana – Higher taxes 140 Non-operational impacts 131 + Negative free cash flow of divested
Slide 15: Leverage continued to improve
Leverage continued to improve Net debt / Adj. EBITDA was 2.4 (2020: 2.6) Net debt m€ Equity ratio was 40.6% (2020: 37.4%) 3.0 3.1 Long-term target < 3.0 2.6 2.8 2.7 Net financial expenses 2.6 2.5 2.4 – Q4 2021: Positive 1m€ (2020: -2) due to change in fair value of a liability related to earli
Slide 16: Strong progress towards our long-term financial targets
Strong progress towards our long-term financial targets GROUP Long-term target 31 Dec 2021 Net debt / adj. EBITDA below 3.0 2.4 Equity ratio 35-45% 40.6% Increasing dividend Dividend 40-60% 55% of free cash flow LEARNING FY 2021 Comparable net sales development 2-5% 7% Operational EBIT margin excl.
Slide 17: Financial reporting in 2022
Financial reporting in 2022 Annual Report 2021 Week 9 (incl. Financial Statements and Report of the Board of Directors, Sustainability Report, Remuneration Report and Corporate Governance Statement) AGM 2022 Thursday 7 April Interim Report Q1 2022 Friday 29 April Half-Year Report 2022 27 July Interi
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: Sanoma in 2021
Sanoma in Learning Media Finland 2021 Net sales 637m€ Net sales 615m€ NET SALES Non-print 57% Non-print 49% 1,252m€ Margin 21.0% Margin 11.9% NON-PRINT SALES NET SALES NET SALES 53% Netherlands Subscription Poland Non-print OPERATIONAL EBIT MARGIN advertising Spain 15.8% Belgium Print advertising Si
Slide 21: Group key figures Q4 2021
Group key figures Q4 2021 m€ Q4 2021 Q4 2020 Q4 2021 Q4 2020 Net sales 252.4 227.3 Average number of employees (FTE) 4,885 4,255 Operational EBITDA 42.1 43.4 Number of employees at the end of the 4,822 4,806 margin 16.7% 19.1% period (FTE) Operational EBIT excl. PPA -5.2 -1.5 margin -2.1% -0.6% EBIT
Slide 22: Group key figures FY 2021
Group key figures FY 2021 m€ 2021 2020 2021 2020 Net sales 1,251.6 1,061.7 Average number of employees (FTE) 4,885 4,255 Operational EBITDA 361.0 309.9 Number of employees at the end of the 4,822 4,806 margin 28.8% 29.2% period (FTE) Operational EBIT excl. PPA 197.2 156.5 margin 15.8% 14.7% EBIT 142
Slide 23: Learning: Quarterly key figures
Learning: Quarterly key figures m€ FY 21 FY 20 Q4 21 Q3 21 Q2 21 Q1 21 Q4 20 Q3 20 Q2 20 Q1 20 Net sales 637.3 499.7 88.5 331.6 149.0 68.2 66.6 259.9 115.2 57.9 Operational EBITDA 213.1 167.1 3.0 144.9 66.0 -0.9 -1.0 108.5 56.2 3.4 Operational EBIT excl. PPA 133.9 95.9 -20.6 125.6 48.9 -20.0 -17.8 8
Slide 24: Media Finland: Quarterly key figures
Media Finland: Quarterly key figures m€ FY 21 FY 20 Q4 21 Q3 21 Q2 21 Q1 21 Q4 20 Q3 20 Q2 20 Q1 20 Net sales 615.3 562.6 164.1 154.8 154.1 142.2 160.8 141.0 130.9 129.9 Operational EBITDA 155.0 146.6 41.9 40.9 40.0 32.2 44.7 41.0 31.8 29.1 Operational EBIT excl. PPA 73.5 66.6 19.1 23.9 19.3 11.3 17
Slide 25: Finnish advertising market development 1/2
Finnish advertising market development 1/2 Finnish measured media advertising markets FY 21 Q4 21 Q3 21 Q2 21 Q1 21 FY 20 Q4 20 Q3 20 Q2 20 Q1 20 Newspapers 3% 2% 0% 36% -14% -25% -18% -21% -42% -19% Magazines -4% -5% -4% 11% -16% -19% -12% -24% -30% -10% TV 9% 0% 4% 43% -3% -9% 10% -6% -34% -3% Rad
Slide 26: Finnish advertising market development 2/2
Finnish advertising market development 2/2 Share of media advertising groups and development in 2021 (change-% vs. 2020) 0.2% 5% 15% Newspaper (+3%) 3% Free (+1%) 4% Magazines (-3%) 1,276m€ TV (+9%) Radio (+18%) 50% 18% Online incl. search and social media (+21%) Movies (-5%) Outdoor (+16%) 5% Sourc
Slide 27: External debt portfolio on 31 December 2021
External debt portfolio on 31 December 2021 External debt structure 1) Maturity profile 2021–2024 m€, 31 Dec 2021 m€, 31 Dec 2021 1,000 7 100 800 50 75 75 200 600 507m€ 1) 400 800 725 650 650 200 200 0 Term loan 2019 Term loan 2020 Bond Other loans 2021 2022 2023 2024 Commited funding Maturity 1) Ex
Slide 28: Largest shareholders December 2021
Largest shareholders 31 December 2021 Largest shareholders Holding by sector Number of shares 3% 1. Jane and Aatos Erkko Foundation 39,820,286 24.4% 19,761,800 12.1% 16% 2. Antti Herlin 16% Holding Manutas Oy: 12.10% personal: 0.02% 3. Robin Langenskiöld 12,273,371 7.5% 4. Rafaela Seppälä 10,273,370
Slide 29: Creating a positive impact – Sanoma Sustainability Strategy
Creating a positive impact – Sanoma Sustainability Strategy reflected in improved ESG ratings 1. INCLUSIVE LEARNING 2. SUSTAINABLE MEDIA Sanoma’s key ESG ratings have We develop inclusive learning We provide trusted Finnish journalism improved solutions that help all students and inspiring entertain
Slide 30: Analyst coverage
Analyst coverage Carnegie Investment Bank Pia Rosqvist-Heinsalmi +358 9 6187 1232 Danske Markets Equities Panu Laitinmäki +358 10 236 4867 Inderes Petri Gostowski +358 40 821 5982 Kepler Cheuvreux Stefan Billing +46 8 723 51 48 Nordea Sami Sarkamies +358 9 5300 5176 OP Corporate Bank Kimmo Stenvall
Slide 31: Disclaimer
Disclaimer The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Sanoma
Slide 32: Please contact our Investor Relations
Please contact our Investor Relations: Kaisa Uurasmaa, Head of IR & Sustainability +358 40 560 5601 | kaisa.uurasmaa@sanoma.com ir@sanoma.com | www.sanoma.com