Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Non-Deal Roadshow (May 2010)
38 slides from Alma Media Oyj's roadshow presentation, May 27, 2010
Slide 1: Alma Media Q1 2010 Roadshow
Alma Media Q1 2010 Roadshow 27 May 2010 Rauno Heinonen, IR 1 May-June 2010
Slide 2: In the presentation
In the presentation • Alma Media today • Market Environment • Alma Media’s Strategy • Highlights Q1 2010 • Outlook for 2010 • Appendix: Financial Review Q12010 2 May-June 2010
Slide 3: Alma Media today
Alma Media today Main brands of Alma Media in print and online MARKETPLACES KAUPPALEHTI NEWSPAPER AND ONLINE MEDIA GROUP Net sales Net sales: Net sales 27 MEUR (2009) 63 MEUR (2009) 221 MEUR (2009) Personnel: 200 Personnel: 477 Personnel: 1 149 Net sales total 2009: 308 MEUR, EBIT-% 13,8 %. Online 1
Slide 4: Net Sales 2009, MEUR
Net Sales 2009, MEUR w/o onetime items Alma Media total Newspapers Kauppalehti-Group Marketplaces 307,8 MEUR 215,5 MEUR 62,8 MEUR 27,0 MEUR Newspapers 69,3% (213,4 MEUR) Aamulehti 34,4% (74,2 MEUR) Kauppalehti 63,2% (39,7 Etuovi.com 47,9% (12,9 MEUR) MEUR) monster 15,8% (4,3 MEUR) KL-Group 20,3% (62
Slide 5: Shareholding and company events
Shareholding and company events • Company events coming up Largest registered shareholders % of shares / – July 23: Q2 2010 results April 30, 2010 votes – August 19: Extraordinary 1. Ilkka-Yhtymä Oyj 20.4 General Meeting 2. Oy Herttaässä Ab 13.4 • As requested by Herttaässä • www.almamedia.fi/egm 3.
Slide 6: Market environment
Market environment
Slide 7: Finland is a newspaper country
Finland is a newspaper country • Fairly steady reader base for Readers Change, % daily regional newspapers (’000) Iltalehti 654 +1,6 – Early home delivery by 6.30 a.m. comes as standard Aamulehti 310 -1,6 – Over 95 % of regional Kauppalehti 229 -0,4 newspapers circulation is Satakunnan Kansa 134 +3,
Slide 8: Also online visitor numbers keep growing
Also online visitor numbers keep growing 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2005 2006 2007 2008 2009 Regional newspapers Marketplaces Kauppalehti.fi Iltalehti.fi Telkku.com and Vuodatus.net total Source: TNS Gallup. Annual average number of visitors. 8 May-June
Slide 9: Newspapers' circulation on healthy level
Newspapers’ circulation on healthy level CHANGE CHANGE 2007-2008 2009-2010 Alma Media’s regional -0,5% Slight decline as expected newspapers Cutting free circulation copies Kauppalehti -9,1% and economic downturn reduced circulation. Iltalehti -8 % Structural change in the -8,2 % afternoon tabloid m
Slide 10: Advertising correlates with GDP
Advertising correlates with GDP 15 % 10 % 5% 0% -5 % -10 % -15 % -20 % -25 % 2007 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 GDP Advertising Newspaper advertising Sources: Statistics Finland, Finnish Advertising Council 10 May-June 2010
Slide 11: Advertising sales change 4/2009 - 4/2010
Advertising sales change 4/2009 - 4/2010 30 % 20 % 10 % 0% -10 % -20 % -30 % Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % * Source: TNS Media Intelligence 11 May-June 2010
Slide 12: Advertising change by branch
Advertising change by branch Total market; change from previous year P2 2010 vs 2009 P3 2010 vs 2009 P4 2010 vs 2009 -5,9 % Retail Retail 6,1 % -6,8 % Retail -3,5 % Motor v. Motor v. 5,7 % Motor v. -5,6 % -9,5 % Food & bev. Food & bev. 23,6 % Food &… 10,9 % Recru 3,7 % Recru 13,7 % Recru 28,9 % Ente
Slide 13: Advertising by branch 4/2010
Advertising by branch 4/2010 Total market; change from 4/2009 Advertising in 4/10 MEUR -6,8 % Retail Retail 22 -5,6 % Motor v. Motor vehicles 8 Food & bev. 10,9 % Food & beverages 7 Recru 28,9 % Recruiting 3 -9,4 % Entert Entertainment 3 -6,4 % Houses Houses and premises 3 Tele 7,4 % Telecommunicati
Slide 14: Advertising by branch 1-4 2010
Advertising by branch 1-4 2010 Total market; change from 1-4 2009 Advertising in 1-4 10 MEUR -3,0 % Retail Retail 78 -1,8 % Motor v. Motor vehicles 32 -3,4 % Food & bev. Food & beverages 29 Recru 8,4 % Recruiting 15 -8,9 % Houses Houses and premises 13 Tele 19,7 % Telecommunications 13 -2,5 % Entert
Slide 15: Strategy
Strategy
Slide 16: Online services growing to major business
Online services growing to major business Market size & market growth estimates MARKET SIZE FUTURE MARKET GROWTH ESTIMATES MEUR % 800 25 700 20 600 500 15 400 10 300 NEWSPAPER NEWSPAPER ONLINE CIRCULATION ADVERTISING ADVERTISING 200 GROWTH GROWTH 5 GROWTH p.a. p.a. NEWSPAPER NEWSPAPER p.a. ONLINE 10
Slide 17: Towards new breed of content and services
Towards new breed of content and services • Strong media brands NEW SERVICES AND support operational SERVICE CONTENT expansion to DEBATE new kind of services and ENTER- service content TAINMENT NEWS CONTENT – online and print as hybrid media 17 May-June 2010
Slide 18: Kauppalehti as a pioneer in hybrid media
Kauppalehti as a pioneer in hybrid media 417,000 readers daily 562,267 unique visitors 229,000 readers weekly weekly Profile emphasis: Profile emphasis: • Decision makers • Expert position and those (management and entrepreneurs) interested in stocks 18% of Kauppalehti.fi visitors read Kauppalehti p
Slide 19: Business media growing into service
Business media growing into service Business media Corporate service market market Balance Company ePortti Consulting search Market information services ? ? Online media Online media Print media Print media
Slide 20: Iltalehti.fi drives online growth
Iltalehti.fi drives online growth • New breed of online content Top online media in Finland raised Iltalehti.fi to be the • Iltalehti.fi 2.15m most popular news medium • Ilta-Sanomat.fi 1.83m among young adults • MTV3.fi 1.74m • Iltalehti.fi is # 2 advertising • YLE.fi 1.40m media for 20-29 year age
Slide 21: Highlights Q1 2010
Highlights Q1 2010
Slide 22: Highlights Q1 2010
Highlights Q1 2010 • Comparable net sales at the level of Q1 2009 – Reported net sales decreased to 74.4 (76.4) MEUR. • Operating profit improved to 11.1 (8.5) % of net sales – Good cost control and March advertising sales boosted profitability. • Advertising market improved at the end of first quar
Slide 23: Key figures Q1 2010, MEUR
Key figures Q1 2010, MEUR Net sales, MEUR EBIT, MEUR 90 ¥ 14 80 2,7% 12 70 73,0 79,0 10 +10,69 6% 60 8 50 40 6 30 4 20 2 10 0 0 -2 Q2 09 Q3 09 Q409 Q110 Q2 09 Q3 09 Q409 Q110 23 | May-June 2010 Onetime items
Slide 24: Net sales change by type, MEUR
Net sales change by type, MEUR Circulation, MEUR Advertising, MEUR 0,6 0,0 0,5 71,0 -0,2% 0,4 -2,0 -3,0 0,3 -4,0 0,2 < : -5,0 0,1 i es, o a. 0,0 -7,0 -12,4% -0,1 -8,0 -0,2 -9,0 Q109 Q209 Q309 Q409 Q110 Q109 Q209 Q309 Q409 Q110 24 May-June 2010
Slide 25: EBIT by segment, MEUR
EBIT by segment, MEUR w/o onetime items Marketplaces, MEUR & % Other, MEUR 0,20 3% 2,5 0,15 1% 0,10 2,0 0,05 ' 1% 1,5 0,00 0% , -0,05 — 1% 1,0 -0,10 ——. 2% -0,15 | 0,5 0,20 S 3% 0,25 0,0 0,30 4% -0,35 5% -0,5 Q1 09 Q2 09 Q309 Q409 Q1 10 Q109 Q209 Q309 Q409 Q110 25 May-June 2010
Slide 26: EBIT by segment, MEUR
EBIT by segment, MEUR w/o onetime items Newspapers, MEUR & % Kauppalehti Group, MEUR & % 12,0 18% 2,5 25% -17,9% +16,9% 16% 10,0 _ 14% 2,0 8,0 12% 1,5 15% 10% 6,0 8% 1,0 10% 4,0 6% 4% 0,5 5% 2,0 , 2% 0,0 0% 0,0 Q109 Q209 Q309 Q409 Q1 10 Q109 Q209 Q309 Q409 Q1 10 0% 26 May-June 2010
Slide 27: Outlook for 2010
Outlook for 2010
Slide 28: Outlook for 2010
Outlook for 2010 • In 2010, Alma Media expects its comparable net sales and operating profit to increase moderately from the 2009 level as a result of a gradual growth in advertising sales. • Q2 2010 net sales and operating profit are expected to be close to the previous year’s level. 28 May-June 20
Slide 29: Q&A
Q&A
Slide 30: Appendix: Financial review Q1 2010
Appendix: Financial review Q1 2010
Slide 31: Net Sales Q1/2010, MEUR
Net Sales Q1/2010, MEUR Newspapers Kauppalehti-Group Marketplaces 52,2 MEUR (68,8%) 14,1 MEUR (18,8%) 7,7 MEUR (10,3%) 20 4,0 12 10 3,0 15 8 10 6 2,0 4 5 1,0 2 0 0 0,0 Etuovi.com 47,9% (3,6 MEUR) Aamulehti 36,2% (18,9 MEUR) Kauppalehti 71,9% (10,3 MEUR) monster 20,4% (1,5 MEUR) Iltalehti 25,6% (13,4
Slide 32: Net Sales change Q1/2010 vs Q1/2009
Net Sales change Q1/2010 vs Q1/2009 w/o onetime items Alma Media total Newspapers Kauppalehti-Group Marketplaces -2,1 MEUR (-2,8 %) -0,2 MEUR (-0,4 %) -2,2 MEUR (-13,4 %) +0,5 MEUR (+6,6 %) 1,5 0,6 0,5 0,60 1,0 0,5 0,0 0,5 0,4 0,40 0,3 -0,5 0,0 MEUR 0,2 MEUR MEUR MEUR -0,5 -1,0 0,20 0,1 -1,0 0,0 -1,
Slide 33: Cash flow from operating activities
Cash flow from operating activities 30,0 26,8 25,6 25,0 22,4 20,0 MEUR 15,0 10,0 5,0 0,0 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Tax return 33 May-June 2010
Slide 34: Cash flow and investments
Cash flow and investments IFRS 30 1.2 25.6 24.7 1.0 1.0 25 22.4 0.8 21.4 0.8 20 0.6 MEUR MEUR 15 0.4 10 0.2 5 0.0 0 -0.2 Q1 09 Q1 10 Q1 09 Q1 10 from operating activities gross investments before financing activities proceeds from sales of assets 34 May-June 2010
Slide 35: Net debt, MEUR
Net debt, MEUR 30 25,8 25 20 15 10 5 3,8 MEUR 0,3 0 -5 -3,2 -10 -7,9 -15 -20 -16,5 -25 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Dividend 27.3.08 Dividend 25.3.09 Dividend 25.3.10 67.2 MEUR 22.4 MEUR 29.8 MEUR 35 May-June 2010
Slide 36: Key ratios in 2010
Key ratios in 2010 IFRS Equity ratio, % Gearing, % ROE% ROI% 80 0 35 35 -2 33,2 70 30 32,4 30 -4 67,2 60 25 -6 25 59,5 25,6 50 -8 20 20 20,6 40 -10 -10,8 -12 15 15 30 -14 10 10 20 -16 -17,1 5 5 10 -18 0 -20 0 0 Q4 09 Q1 10 Q4 09 Q1 10 Q1 09 Q1 10 Q1 09 Q1 10 36 May-June 2010
Slide 37: EPS and shareholders' equity per share
EPS and shareholders' equity per share 0,10 1,4 0,08 1,2 1,0 0,06 0,65 0,8 0,33 0,04 0,08 0,07 0,6 0,02 0,4 0,64 0,64 0,00 0,2 -0,01 -0,02 0,0 Q1 09 Q1 10 Q4 09 Q1 10 EPS wo onetime Retained earnings Onetime items Restricted equity 37 May-June 2010
Slide 38: Balance Sheet
Balance Sheet IFRS MEUR Q1 2010 Q1 2009 Intangibles and goodwill 39,1 44,9 Tangibles 30,9 34,3 Associated companies 31,8 30,3 Inventory 1,0 1,3 Receivables 33,0 38,0 Cash 12,3 31,8 Assets 148,1 180,7 Equity 72,6 70,3 Reserves-obligatory 1,1 1,2 Pension liabilities 3,0 3,5 Ib debt 4,4 35,6 Non-Ib deb