Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2009)
34 slides from Sanoma Oyj's investor day presentation, Oct 12, 2009
Slide 1: Re-inventing Television
Re-inventing Television Anu Nissinen President and CEO, Sanoma Entertainment Sanoma Capital Markets Day 12 October 2009
Slide 2: Agenda
Agenda Sanoma Entertainment today Trends in the business environment Sanoma Entertainment’s response CMD 2009 / Anu Nissinen 12.10.2009 2
Slide 3: Sanoma Entertainment’s activities
Sanoma Entertainment’s activities Commercial Television and Radio Pay TV Online TV Cable Television Broadband Internet Online TV Online gaming CMD 2009 / Anu Nissinen 12.10.2009 3
Slide 4: Sanoma Entertainment’s present businesses: Commercial TV and Radio
Sanoma Entertainment’s present businesses Commercial TV and Radio • A strong combination of TV, Radio and Online • Commercial viewing share in the 33.6% (#2) 10–44 target group • Share of the Finnish TV advertising 33.5% (#2) FTA TV PAY TV RADIO market • Share of radio listening in the 9–44 15.4% (#
Slide 5: Sanoma Entertainment’s present businesses: Cable Communications
Sanoma Entertainment’s present businesses Cable Communications • A modern Content Delivery Network in the capital region (Helsinki, Espoo, Vantaa and Kauniainen) • 324,000 connected households BROADBAND PAY TV (400,000 passed by) • 60% of households in the region • 25% of cable homes in Finland ONLI
Slide 6: Sanoma Entertainment’s present businesses: Online Gaming
Sanoma Entertainment’s present businesses Online Gaming • Market leader in Finland • Pelikone #1 gaming site in Finland • Älypää #1 trivia site in Finland • Liigapörssi #1 fantasy league in Finland • Over 40% revenue growth 2009 CMD 2009 / Anu Nissinen 12.10.2009 6
Slide 7: Sanoma Entertainment financials 1H09
Sanoma Entertainment financials 1H09 Net sales EBIT excluding non-recurring items 50 8 EUR million EUR million 7 41 40 41 41 41 7 6 40 6 35 6 5 30 4 4 4 20 3 3 2 10 1 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 2008 2009 CMD 2009 / Anu Nissinen 12.10.2009 7
Slide 8: Agenda
Agenda Sanoma Entertainment today Trends in the business environment Sanoma Entertainment’s response CMD 2009 / Anu Nissinen 12.10.2009 8
Slide 9: TV viewing has been growing…
TV viewing has been growing… Time spent watching TV (Finnish population 10+) Min / day 200 173 177 174 172 169 169 172 168 168 167 166 161 160 150 150 150 141 120 80 40 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1-8 1-8 2008 2009 Source: Finnpanel CMD 2009 / Anu Nissinen
Slide 10: …and fragmenting…
…and fragmenting… Channel shares of viewing (Finnish population 10+) 100% Others 90% 80% Nelonen Media 70% 60% MTV 50% Media 40% 30% 20% Yle 10% 0% '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 1-6 1-6 '08 '09 Source: Finnpanel CMD 2009 / Anu Nissinen 12.10.2009 10
Slide 11: …leading to Finns watching an increasing number of TV channels per week
…leading to Finns watching an increasing number of TV channels per week Number of TV channels watched per week 12 10.6 10.6 9.9 9.7 9.8 10 9.0 9.2 8.6 8.5 7.8 8.0 8.0 8 6.9 6.9 6.7 6.4 6.2 5.9 5.7 5.9 6 5.5 5.3 5.3 5.2 5.2 4.4 4.6 4.0 4 2 0 10+yrs 4-9yrs 10-14yrs 15-24yrs 25-44yrs 45-64yrs 65+yrs Se
Slide 12: Online video has become a mass market…
Online video has become a mass market… Million viewers/ Number of unique video viewers in the US month 180 160 140 120 Aug Aug2009 2009statistics: statistics: 100 •• 161 161 Millionunique Million uniqueviewers viewers 80 •• 82% 82%ofofthe thetotal totalUS USInternet Internet audience audience viewed
Slide 13: …which increases viewing of living images even further
…which increases viewing of living images even further Time spent viewing online video by average viewer in the US Min / day 20 Min / day 18 350 19 319 300 300 16 250 14 200 150 12 100 50 10 0 TV Online Total 8 video 6 4 2 0 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 07 07 07 07
Slide 14: Online TV builds on, rather than replaces broadcast viewing
Online TV builds on, rather than replaces broadcast viewing • Online TV is a different experience, used for different things • Two main drivers for online TV use were – Catch up (78%, more females, mainly broadcaster destinations) – Discovery (22%, more males, YouTube leading) • In study a study by
Slide 15: TV & online TV will increase its share of advertising
TV & online TV will increase its share of advertising • New technology development that enhances the TV experience (HDTV, PVRs…) • Access to mass audiences • More targeted offers (thematic channels) in TV and online • Emergence of a dual consumption mode TV/Internet CMD 2009 / Anu Nissinen 12.10.200
Slide 16: Developments in the picture technology increase the overall attractiveness of TV
Developments in the picture technology increase the overall attractiveness of TV Already here: Piloting in the near future: High Definition TV 3D TV SD picture HD picture CMD 2009 / Anu Nissinen 12.10.2009 16
Slide 17: Faster broadband speeds will enable convergence of broadcast TV and online
Faster broadband speeds will enable convergence of broadcast TV and online Speeds of fixed broadband connections in Finland % of connections 100% Enables high quality HD online 90% video 80% 70% 60% 50% Enables SD online 40% video 30% 20% 10% 0% 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 Less than 2 Mb
Slide 18: Mobile broadband will enable the 3rd screen
Mobile broadband will enable the 3rd screen Broadband connections by type in Finland Million connections 2.5 2.244 2.097 2.0 1.923 1.760 1.520 1.5 1.429 1.310 1.174 1.0 0.5 0.0 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 Fixed Wlan Mobile Source: FiCoRa CMD 2009 / Anu Nissinen 12.10.2009 18
Slide 19: Over-The-Top distribution of video content and converged services are already here
Over-The-Top distribution of video content and converged services are already here CMD 2009 / Anu Nissinen 12.10.2009 19
Slide 20: New ways to operate within the TV value chain are forming…
New ways to operate within the TV value chain are forming… Content Content Pay TV Network Consumer owner aggregator operator operator devices Broadband OTT services Internet TV, consoles Online TV Online video services New distr. channels CMD 2009 / Anu Nissinen 12.10.2009 20
Slide 21: …as the market for living images evolves towards anything, anywhere, anytime
…as the market for living images evolves towards anything, anywhere, anytime Building the Monetizing future of TV fragmentation Online video Pay TV, FTA main channels FTA thematic FTA main channels Horizon 1 Horizon 2 Horizon 3 "Anything, "Watch anytime, what's on" Time anywhere" CMD 2009 / Anu Niss
Slide 22: Online gaming is growing even faster than online video consumption…
Online gaming is growing even faster than online video consumption… Million visitors/ Size of online gaming % of all month audience the US online users 100 50% 90 45% 80 40% 70 35% 60 30% 50 25% 40 20% 30 15% 20 10% 10 5% 0 0% May 07 Dec 07 May 08 Dec 08 May 09 Unique visitors % of online audience C
Slide 23: …and the business model is moving from traditional retail to online
…and the business model is moving from traditional retail to online 1. Online Digital Distribution 2. Free Games With Virtual Item Model 3. Game Cards at Retail CMD 2009 / Anu Nissinen 12.10.2009 23
Slide 24: Agenda
Agenda Sanoma Entertainment today Trends in the business environment Sanoma Entertainment’s response CMD 2009 / Anu Nissinen 12.10.2009 24
Slide 25: On the online gaming front, we are constantly developing our services
On the online gaming front, we are constantly developing our services to stay on the cutting edge New Liigapörssi New Taukopelit Gamer.fi New Älypää 01/09/2009 24/09/2009 25/09/2009 30/09/2009 CMD 2009 / Anu Nissinen 12.10.2009 9.10.2009 25
Slide 26: Nelonen Media has lived the fragmentation trend by turning into a multimedia house
Nelonen Media has lived the fragmentation trend by turning from one channel into a multimedia house June Jan Aug Feb 1997 2007 2007 2009 Feb Sep Jun 2007 2007 2009 CMD 2009 / Anu Nissinen 12.10.2009 26
Slide 27: Ruutu.fi has Nelonen Media’s video and audio content in one online service
Ruutu.fi has Nelonen Media’s video and audio content in one online service • Launched 6/2009 • All Nelonen Media’s video and audio content in one service • Concept: – Easy to use – Quality and breadth of content – Increasing viewing time • Business: – Ad-funded – Easy to sell – Logical extension of
Slide 28: At Nelonen Media, online TV already builds on broadcast TV
At Nelonen Media, online TV already builds on broadcast TV ”Finland’s Next Top Model” TV live TV time- TV Online www viewing shift re-run TV site 2008 237,000 28,000 72,000 36,000 39,000 412,000 10+ live 10+ 10+ 2009 328,000 26,000 60,000 43,000 45,000 502,000 10+ live 10+ 10+ CMD 2009 / Anu Nissine
Slide 29: Welho has nearly 130 digital channels…
Welho has nearly 130 digital channels… CMD 2009 / Anu Nissinen 12.10.2009 29
Slide 30: …and is in the front line in bringing HD content to its customers…
…and is in the front line in bringing HD content to its customers… 16 HD channels and growing + set-top-boxes + CMD 2009 / Anu Nissinen 12.10.2009 30
Slide 31: …as well as in building an online platform for TV content and paid video
…as well as in building an online platform for TV content and paid video CMD 2009 / Anu Nissinen 12.10.2009 31
Slide 32: Broadcasters and Pay TV / Cable operators are capturing the largest share of ad-supported online TV revenues
Broadcasters and Pay TV / Cable operators are capturing the largest share of ad-supported online TV revenues 2008 share of ad-supported online TV revenues Source: Screen Digest CMD 2009 / Anu Nissinen 12.10.2009 32
Slide 33: Sanoma Entertainment is well positioned to benefit from the new ways of operating
Sanoma Entertainment is well positioned to benefit from the new ways of operating in the TV business Content Content Pay TV Network Consumer owner aggregator operator operator devices Broadband OTT services Internet TV, consoles Online TV Online video services New distr. channels CMD 2009 / Anu Niss
Slide 34: Let us entertain!
Let us entertain! Thank you. CMD 2009 / Anu Nissinen 12.10.2009 34