Slide 1: Sanoma Q2 2017 Results
Sanoma Q2 2017 Results Susan Duinhoven - President and CEO Markus Holm – CFO and COO
Slide 2: Highlights of Q2 2017
Highlights of Q2 2017 Q2 in line with expectations: – Operational EBIT stable at EUR 78.8 million (2016: 78.6), adjusted for SBS – Improved profitability in Media Finland and the Dutch print and online portfolio – Increased costs related to creating new learning methods in Poland – Reported operat
Slide 3: Operational EBIT adjusted for SBS stable
Sanoma Q2 2017: Q2 Comparable operational EBIT, adjusted for the SBS transaction Operational EBIT EUR million 41 adjusted for SBS stable 34 25 23 Sanoma Group 21 Q2/17 Q2/16 19 EUR million Net sales 441 450 Net sales adjusted for SBS 382 388 Organic growth -2.0% 1.7% Organic growth adjusted -1.5% 2.
Slide 4: Media Advertising Markets
Media Advertising Markets Preliminary estimate on Netherlands* Q1/16 Q2/16 FY/16 Q1/17 Q2/17* Magazines -8% -8% -7% -10% -12% TV +6% -2% -2% -5% -6% Online* +10% +14% +11% +7% +8% Total market* +4% +4% +3% +3% +3% Sanoma’s outlook for 2017 is based on the assumption of the advertising market Finland
Slide 5: Media BeNe Q2
#1 in Digital reach #1 in Magazine reach Media BeNe Q2 (million people) (million people) Improved profitability in Dutch print and Sanoma|SBS 9,9 Libelle 1,6 online portfolio NPO Persgroep Donald Duck LINDA. 1,4 1,2 RTL Prive Marktplaats Margriet 1,0 TMG Veronica 1,0 Semilo Quest Organic net sales
Slide 6: Media Finland Q2
Nelonen TV viewing share Media Finland Q2 Commercial TV (10-44 years) Profitability continued to improve 45% 2015 2016 40% 2017 35% Organic net sales decreased by 2% 30% – Subscription sales performing well, esp. 25% increased number of subscribers paying for digital content 20% Jan Feb Mar Apr Ma
Slide 7: Learning Q2
Learning Q2 Costs to create new methods affecting results Number of users in digital learning platforms Sales increased by 3% – Strong performance in Finland – Consolidation of De Boeck in Belgium – Lower sales in the Netherlands and Q2 2017 Sweden, expected to be partially recovered vs. in Q3 Q2
Slide 8: Outlook unchanged
Outlook unchanged Net sales, adjusted for structural changes including SBS divestment, will be stable and Operational EBIT margin will be above 10% 8
Slide 9: Financials
Financials
Slide 10: Operational EBIT increased
Sanoma H1 2017: H1 Comparable operational EBIT, adjusted for the SBS transaction Operational EBIT EUR million increased 42 39 Sanoma Group 33 EUR million H1/17 H1/16 30 30 Net sales 785 803 19 Net sales adjusted for SBS 679 691 Operational EBIT 93 89 Operational EBIT adjusted for SBS 95 85 Cash flow
Slide 11: Q2 Comparable Operational EBIT Stable, adjusted for SBS
Q2 Comparable Operational EBIT Stable, adjusted for SBS Media BeNe: + Cost innovations in print and online EUR million portfolio - Slightly lower print sales +3.5 Media + Cost innovations, e. g. in distribution -7.0 +3.2 Finland: + Growth in digital sales (+14%) 78.6 +0.4 78.8 Learning: + Improved p
Slide 12: Q2 Reported free cash flow lower due to working capital and taxes
Q2 Reported free cash flow* lower due to working capital and taxes 0 -1 -2 -5 -19 -10 2 -1 -11 >2/3 -15 related to short term -20 incentives 17 -25 -7 -30 -35 2016 Q2 EBITDA** Net working Taxes Financial TV rights Cash capex & 2017 Q2 capital items other * Free cash flow = cash flow from operations
Slide 13: Financial impacts of the SBS transaction
Impact of the SBS transaction on net result Financial impacts of the SBS transaction In accordance with IFRS5, all assets and liabilities relating to SBS were classified as held -287 -286 -286 for sale resulting in a non-cash capital loss of -308 EUR -308 million -425 Total impact on net result
Slide 14: Lower Financing Costs
Debt structure as of 30 June 2017, EUR 897 million Lower Financing Costs 19 2 200 EUR 200 million of Bond 2017 repaid in March, using commercial paper and bank financing Net financial items YTD EUR -11.0 million (2016: -17.7) 125 Average interest rate during H1 down to 2.0% 513 (2016: 2.8%)
Slide 15: Deleveraging continues
Deleveraging continues 1000 950 930 7 900 855 864 845 852 847 825 823 6 802 801 786 800 766 700 5 Net debt/EBITDA adjusted* 3.6 times (2016: 3.8) 600 4 500 Net debt: EUR 847 million (2016: 855) 3 400 The divestment of SBS will improve the 300 leverage ratio going forward 2 200 Continued impr
Slide 16: Q&A
Q&A
Slide 17: Reported Income Statement
Reported Income Statement EUR million 4–6/2017 4–6/2016 1-6/2017 1–6/2016 1–12/2016 Net sales 441.4 449.7 785.2 802.8 1,639.1 Operational EBITDA 148.0 153.0 230.4 226.4 452.4 Operational EBIT 81.7 86.9 93.1 88.8 167.9 Items affecting comparability -4.2 54.8 -431.4 56.0 28.7 Operating profit 77.6 141
Slide 18: Sanoma pro forma 2016 excluding SBS
Sanoma pro forma 2016 excluding SBS: Net sales EUR 1,407 million – non-print sales in media and learning 38% (EUR 540 million) Operational EBIT margin above 10% Three Strategic Business Units TV & Radio Net sales EUR 130 million Media Media BeNe Learning Finland Magazines Net sales EUR 460 million 2
Slide 19: Sanoma – Largest Shareholders
Sanoma – Largest Shareholders % of shares 30 June 2017 and votes 24,5 % 1. Jane and Aatos Erkko Foundation 24.46 2. Antti Herlin 11.49 (Holding Manutas Oy: 11.47%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 46,7 % 5. Helsingin Sanomat Foundation 3.50 6. Ilmarinen Mutual Pens
Slide 20: Important Notice
Important Notice 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
Slide 21: sqnomd
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