Slide 1: Q3 Interim Report 2022
Strong performance in a challenging operating environment – revenue and operating profit increased in Q3 Q3 INTERIM REPORT 2022 1
Slide 2: Q3 2022 Highlights
Q3 2022 Strong performance and high profitability in a turbulent Highlights environment – EBIT margin at a high level REVENUE (MEUR) ADJUSTED OPERATING PROFIT* 10.0% (MEUR) (% OF REVENUE) 8.1% 25.9 % 26.3 % 24.5 % 54 68 75 13.2 17.8 19.3 Q3 2020 Q3 2021 Q3 2022 Q3 2020 Q3 2021 Q3 2022 • Solid perfor
Slide 3: Alma Career boosted operational profitability
Alma Career boosted operational profitability REVENUE Q3 2022 (MEUR) ADJUSTED OPERATING PROFIT* Q3 2022 (MEUR) 1.9 -0.3 5.3 0.3 -0.2 0.4 1.0 67.8 74.5 17.8 19.3 Q3 2021 Alma Alma Alma Q3 2022 Q3 2021 Alma Alma Alma Shared Q3 2022 Career Consumer Talent Career Consumer Talent Services 3
Slide 4: Digital business growth continued
Digital business growth continued SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 77% 69% 57 % 66% 61% 63% 58% 59% 41 % 51% 53% ** 39 % 40 % 46% 16 % 15 % 4% 3% 3% 1% 2% -4 % 75 82 91 100 125 146 160 165 158 212 187 -17 % 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1-9
Slide 5: Development by business segments
DEVELOPMENT BY BUSINESS SEGMENTS
Slide 6: Alma Career: demand for labour remained strong in all operating countries
Alma Career The demand for labour remained strong in all operating countries REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q3/2022 (REVENUE CHANGE IN BRACKETS) 46.0 % Czech Rep., 59% (+30%) 41.5 % 36.9 % 41.2 % 34.0 % Slovakia, 15% (+14%) Baltics, 10% (+12%) Cr
Slide 7: 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 2019 2020 2021 2022 Revenue Invoicing KPIs (monthly averages in thousands) 1-9/2022 2021
Slide 8: Alma Consumer: a record-breaking result despite challenging market conditions
Alma A record-breaking result despite the challenging Consumer market conditions REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q3/2022 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 26.9 % 27.8 % 24.4 % Media and ad-financed 24.8 % 20.4 % services 49% (+10.4%) Mobility 25% (+3.3%)
Slide 9: Alma Talent: tail wind in digital business growth
Alma Talent Tail wind in digital business growth REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q3/2022 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 22.5 % 21.7 % 21.7 % 18.9 % 17.9 % Alma Talent Media 53% (+3.2%) Alma Talent Services 35% (+4.7%) 22.4 27.5 25.2 24.1 22.1 Dire
Slide 10: Solid financial position
SOLID FINANCIAL POSITION 10
Slide 11: Financial position balancing fast and deleveraging ongoing
Financial position balancing fast and deleveraging ongoing NET DEBT (MEUR) AND GEARING (%) Q3/2019–Q3/2022 EQUITY RATIO Q3/2019–Q3/2022 160.0 % 71.0 % 72.7 % 132.0 % 63.1 % 109.2 % 54.1 % 56.0 % 102.4 % 93.7 % 51.6 % 80.8 % 40.5 % 41.6 % 38.8 % 33.3 % 34.7 % 33.0 % MEUR 29.4 % 27.3 % 31.2 % 11.7 % 5
Slide 12: Strong cash flow enables rapid deleveraging
Strong cash flow enables rapid deleveraging Capital expenditure 1–9/2022 1–9/2021 2021 OPERATING CASH FLOW and acquisitions, MEUR 100 90 86.2 Capex 10.2 3.0 6.1 80 73.0 Acquisitions 2.4 241.0 241.0 70 65.4 60 58.0 Total 12.6 244.1 247.1 MEUR 50 40 • Cash flow from operating activities was MEUR 17.3
Slide 13: EPS picked up to 20 cents in Q3 2022
EPS picked up to 20 cents in Q3 2022 0.28 0.20 • Earnings per share were EUR 0.20 (0.18) 0.18 0.19 EUR 0.14 • Increased profitability was the major driver behind the 0.12 growth of EPS 0.08 0.12 0.09 • Return on equity was 40.7%* and return on investment 18.6%* Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1
Slide 14: Updated long-term financial targets
Updated long-term financial targets* * https://www.almamedia.fi/en/newsroom/ REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO** 19.6 25.3 2.3 16.5 22.2 18.7 19.8 19.7 1.7 2.4 0.3 0.0 -0.2 -1.8 -8.0 2018 2019 2020 2021 1-9 2018 2019 2020 2021 1-9 2018 2019 2020 2021 7-9 2022 202
Slide 15: Operating environment
OPERATING ENVIRONMENT
Slide 16: Ukrainian crisis and our response
Ukrainian crisis • Russia’s invasion’s 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 sanctions and counter-sanctions • Alma Med
Slide 17: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Forecasts 2022-2023 are from July 14, 2022 – the next forecast is given in November 2022 GDP change (%) Inflation (%) Unemployment (%) 2021 2022 2023 2021 2022 2023 2021 2022 2023 Croatia 10.2 3.4 2.9 2.7 8.2 3.6 7.6 6.3 6.0 Czech
Slide 18: Finnish advertising market
Finnish advertising market Alma gained market share MONTHLY CHANGE IN MEDIA ADVERTISING 8/2021–8/2022 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-8/2022 Source: Kantar TNS (1-8/2021)* Source: Kantar TNS A-LEHDET 20% 1% (1%) Other 15% 16% (16%) 10% Keskisuomalainen 5% 2% (3%) ALMA MEDIA 38% (3
Slide 19: Housing market update
Housing market update: volumes close to the long-term average following the more active post-pandemic period Housing Q3 Etuovi.com Q3 market/sales Used apartments -15.9% Supply/ listings 4.8% New apartments -48.6% Demand/ searches -7.0% Source: KvKL= Real Estate Industry Confederation • KVKL: 1-9/20
Slide 20: Mobility update: new car registrations increasing in September
Mobility update: New cars registrations increasing in September — production bottlenecks constrain the industry growth of new vehicles Cars & mobility Sept 1-9/2022 Nettiauto Q3 market 2022 New cars 4% -20% Sold cars, total -9% Used cars Gross Market value of -13% -12% -1% sales Source: AKL=Automoti
Slide 21: Strategy and outlook
STRATEGY AND OUTLOOK
Slide 22: Alma Media transformational strategy
Alma Media transformational strategy • Continue to diversify from media to marketplaces and digital services • Accelerate the digitalisation of print media TRANSFORM THE CORE • Continue to strengthen synergies & co-operation within group and in business units • Activate co-operation within group and
Slide 23: Business segments and drivers for growth
Business Segments and drivers for growth Expanding traditional job Offering market leading Leading business media boards and recruitment industry verticals for buyers and expanding to digital advertising to career sellers with comprehensive information services for development and staffing, digital
Slide 24: 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 monster.fi 1 #1 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia
Slide 25: Approved science-based target for Alma Media
Approved science-based target for Alma Media ENVIRONMENT • Minimising our CO 2 emissions TARGET FOR 2030 Reducing GHG emissions in own operations by 52% and in supply chain by 14% TARGET FOR 2022 4.3% annual reduction of C02 emissions in own operations and 1.23% in supply chain 22 June 2022 Alma Med
Slide 26: Q3 in brief
Q3 in brief Strong performance in Career United Digital business turbulent environment: intensified collaboration across reached new digital milestone many success stories in different countries, a new region-based and picked up momentum parts of the company & shared product organisations in many fr
Slide 27: Outlook for 2022
Outlook For 2022 Update given and announced on 8 July, 2022 • Alma Media expects its full-year revenue and adjusted operating profit from continuing operations in 2022 to increase significantly from the 2021 level. • In 2021, the full-year revenue of the Group’s continuing operations was MEUR 275.4
Slide 28: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Capital Markets Day on Wednesday 23 November 2022 • Financial Statement Bulletin for financial year 2022 on Thursday 16 February 2023 • Annual General Meeting on Tuesday 4 April 2023 • Interim report for January–March 2023 on Friday
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