Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (May 2012)
26 slides from Alma Media Oyj's investor day presentation, May 25, 2012
Slide 1: Alma Media – Living the media transformation
Alma Media – Living the media transformation Kai Telanne, President & CEO Alma Media Capital Markets Day, May 25, 2012 1 25.5.2012
Slide 2: The Digital Alma Media
The 2.8 1/3 Digital Million weekly unique visitors on Iltalehti.fi. Alma Media’s share of the online advertising Alma market (display and classified). Media 75 LMC’s share of the 24 Czech recruitment market, %. % of Alma Media’s revenue comes from #1 digital sources. Alma Media’s position in online
Slide 3: In the presentation
In the presentation Part One: • Market trends overview • Alma Media’s performance • Implementing transformation Part Two: • Strategy going ahead 3 25.5.2012
Slide 4: Market trends overview
Market trends overview 2007 – 2011 in summary 4 25.5.2012
Slide 5: Moderate annual drop in newspaper circulation volumes, reading slightly more resilient
Moderate annual drop in newspaper circulation volumes, reading slightly more resilient Circulation of Alma Media’s daily Readers of Alma Media regional newspapers newspapers 2007 273 562 2007 659 000 2011 249 807 2011 621 000 Change -9% Change - 5.8 % CAGR - 2.2 % CAGR - 1.5 % Circulation of all dai
Slide 6: Online became a medium for masses
Online became a medium for masses Weekly visitors of Alma Media’s largest newspaper sites 2007 62 % 2007 1 306 000 2011 3 174 000 Change % + 143 % Weekly visitors of all large newspapers’ sites 2011 76 % 2007 3 261 000 Share of people in 2011 7 444 000 Finland who use the internet daily Change % + 1
Slide 7: Advertisers going online after the consumers
Advertisers going online after the consumers Retail advertising Advertising Market share Market share channels 2007, % 2011, % Newspapers Online Change 4% 177 % 2007 - 2012 Newspapers 52.5 41.5 Television 19.9 20.3 Real estate and home advertising Newspapers Online Online media 4.7 15.8 Change -46 %
Slide 8: Economic cycle dictates marketing volumes
Economic cycle dictates marketing volumes 15 % 10 % 5% 0% -5 % -10 % -15 % -20 % 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP Advertising Sources: Statistics Finland, Advertisers’ Council 8 25.5.2012
Slide 9: Weak advertising market in 2012
Weak advertising market in 2012 YTD change from previous year, % 16 % 14 % 12 % 10 % 8% 6% 4% 2% 0% -2 % -4 % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 2012 Source: TNS Media Intelligence 9 25.5.2012
Slide 10: Financial performance
Financial performance 10 25.5.2012
Slide 11: Group revenue and EBIT 2008 - 2011
Group revenue and EBIT 2008 - 2011 Revenue, MEUR EBIT, MEUR Onetime items 11 25.5.2012
Slide 12: Q1 2012: revenue grew, operating profit decreased
Q1 2012: revenue grew, operating profit decreased Revenue, MEUR EBIT, MEUR IFRS IFRS -0,2% +5,2% -8,1% -9,1% 90 14 0,4 80 82,7 12 81,3 81,1 12,0 70 77,1 75,1 11,5 10 10,1 60 8 9,3 8,5 50 6 40 4 30 2 20 0 10 -0,3 -0,5 -0,5 -2 0 -2,5 -4 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Oneti
Slide 13: Cash flow from operating activities
Cash flow from operating activities IFRS 30,0 25,0 20,0 12,0 15,0 12,3 MEUR 10,0 20,3 27,5 22,4 12,3 12,0 5,0 0,0 -5,0 -10,0 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Tax return and final withholding tax 13 25.5.2012
Slide 14: Business segment development
Business segment development Newspapers Kauppalehti Group Digital Consumer Services -2,5% -2,1% -5,7% +3,0% +0,1% +43,5% 65,0 30 % 17,0 30 % 16,0 30 % 15,0 14,0 14,9 55,0 25 % 15,2 25 % 25 % 55,8 14,3 53,0 51,9 13,0 13,9 12,0 45,0 20 % 11,0 20 % 20 % • 10,0 10,4 10,5 35,0 16,0 % 14,9 % 9,0 14,5 % 15
Slide 15: Share of digital revenue in business segments
Share of digital revenue in business segments Revenue Q1/2012, MEUR w/o onetime items Newspapers Kauppalehti Group Digital Consumer Services 51,9 MEUR (5,2%) 14,3 MEUR (25,8%) 14,9 MEUR (89,0%) Digital revenue Offline revenue Digital revenue Offline revenue Digital revenue Offline revenue 15 25.5.20
Slide 16: Digital business is growing fast
Digital business is growing fast % MEUR 30,0 56,8 60,0 48,9 24,0 25,0 50,0 43,9 40,4 20,0 35,9 18,0 40,0 15,7 15,0 12,9 13,1 30,0 10,9 19,5 10,0 20,0 5,0 10,0 0,0 0,0 2007 2008 2009 2010 2011 Q1 12 Online sales The share of digital products and services of the total revenue, % 16 25.5.2012
Slide 17: Transformation strategy
Transformation strategy 17 25.5.2012
Slide 18: Business paradigm change in newspaper business
Business paradigm change in newspaper business Key drivers: Consumer behavior Cost of print & distribution Disruptive technology The change in advertising Source: Researcher Timo Ketonen, Edge Research project, May 2012 Alma Media is actively driving this change, and is well-positioned to take advan
Slide 19: Strategy: growth from digital services
Strategy: growth from digital services Digital consumer services Publishing Digital business services 19 25.5.2012
Slide 20: Organisation Jan 1, 2012 to implement the strategy
Organisation Jan 1, 2012 to implement the strategy Alma Regional Media Kauppalehti Group (business unit) (business unit) Alma Diverso (digital support and development) Corporate functions Alma Manu Iltalehti Marketplaces (business unit) (business unit) 20 25.5.2012
Slide 21: Strategic agenda
Strategic agenda Secure stable cash flow Create growth & from publishing development in business Digital Consumer Services Create growth of and digital revenue in Digital Business multichannel news Services media 21 25.5.2012
Slide 22: Implementing the strategic agenda
Implementing the strategic agenda Secure stable cash flow Create growth & from publishing development in business Digital Consumer Services Create growth of and digital revenue in Digital Business multichannel news Services media Strong regional media in Digital business services Finland (Kauppaleht
Slide 23: Digital Alma Media
Digital 2.8 1/3 Alma Million weekly unique visitors on Iltalehti.fi. Alma Media’s share of the online advertising Media market (display and classified). 75 LMC’s share of the 24 Czech recruitment market, %. % of Alma Media’s revenue comes from #1 digital sources. Alma Media’s position in online adve
Slide 24: Alma Media is the most exciting provider of information, service and experiences
Alma Media is the most exciting provider of information, service and experiences. The company sets the stage for the future of media. 25 25.5.2012
Slide 25: Transformation agenda
Transformation agenda Build a strong Broaden regional business media services platform Utilize the Create a power of strong Alma’s recruitment digital offering reach 26 25.5.2012
Slide 26: Questions?
Questions? 27 25.5.2012