Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2009)
30 slides from Sanoma Oyj's investor day presentation, Oct 12, 2009
Slide 1: Capturing consumers where ever they are
CAPTURING CONSUMERS WHERE EVER THEY ARE EIJA AILASMAA PRESIDENT AND CEO, SANOMA MAGAZINES SANOMA CAPITAL MARKETS DAY 12 OCTOBER 2009
Slide 2: In magazines. In digital media.
IN MAGAZINES. IN DIGITAL MEDIA.
Slide 3: Operating companies in 13 countries
Finland #1 in magazines OPERATING COMPANIES IN 13 COUNTRIES Russia The Netherlands #1 in magazines #1 in magazines #1 in digital media Belgium #1 in magazines Czech Republic #4 in magazines Slovakia Ukraine #1 in B2B magazines #5 in magazines Hungary #1 in magazines Slovenia #1 in digital media #2 i
Slide 4: Country operations overview
• Based in Helsinki, Finland • CEO: Ms Raili Mäkinen • Net sales 2008: €205.6 million • Based in Brussels, Belgium • Divisional headquarters • Based in Hoofddorp, the Netherlands • CEO: Mr Aimé Van Hecke • Based in Amsterdam, the Netherlands • CEO: Mr Dick Molman • Net sales 2008: €223.2 million • C
Slide 5: Key financial indicators
KEY FINANCIAL INDICATORS Net sales 275.9 318.5 -13.4 538.1 603.9 -10.9 1,246.8 Operating profit excl. major non-recurring capital gains 31.5 46.6 -32.3 ATA 71.2 -1.3 139.7 - % of net sales 11.4 14.6 8.7 11.8 11.4 Operating profit 30.2 46.6 -35.1 45.8 94.7 -51.7 85.7 Capital expenditure 12.3 12.2 1.5
Slide 6: A balanced revenue mix
A BALANCED REVENUE MIX 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RU NL BE FI Advertising income Single copy sales Subscription revenues Other sales (Revenue split based on December 2008 income)
Slide 7: A broad diversified portfolio: Netherlands
A BROAD DIVERSIFIED PORTFOLIO: NETHERLANDS women’s weeklies glossies custom publishing digital media Disney home deco special interest titles events youth
Slide 8: A broad diversified portfolio: Russia
Women’s titles A BROAD DIVERSIFIED PORTFOLIO: RUSSIA
Slide 9: Growing market leading positions
GROWING MARKET LEADING POSITIONS
Slide 10: Strong local brands
STRONG LOCAL BRANDS
Slide 11: Preferred license partner global media brands
PREFERED LICENSE PARTNER GLOBAL MEDIA BRANDS
Slide 12: And developing quickly in digital media
AND DEVELOPING QUICKLY IN DIGITAL MEDIA
Slide 13: Dutch reach (print + online): 91%
DUTCH REACH (print + online): 91% 12.4 million of all Dutch people aged 13+ (source: STIR, NOM 2009)
Slide 14: Online reach in Hungary and Bulgaria
ONLINE REACH IN HUNGARY AND BULGARIA • Hungarians who use the internet weekly: 4.5 million (= internet penetration of 52%) • Combined reach Sanoma Budapest sites: 72% of all users (source: Webaudit Stat, August 2009) • Bulgarians who use the internet: 3,2 million (= internet presentation of 42%) • C
Slide 15: Magazines are more than magazines
MAGAZINES ARE MORE THAN MAGAZINES magazines websites radio mobile database marketing readers’ events TV joint promotions specials books / agendas discount cards merchandising
Slide 16: Digital scope of magazines+
segments IP media Features focus on inspirational adding additional services, and aspirational content video content, UGC features etc.
Slide 17: Scope of digital media
SCOPE OF DIGITAL MEDIA general ONE ] s (automated selection pied cee contextual search: (e.g. Startlap, Startpagina) “way to). navigation based on looking around (self-selection) VERT = c | De son 1 content thematic navigation inspirational Search: (e.g. travel, cars, parenting | and content content
Slide 18: The recession
The recession is likely to continue to have a pressuring effect on the economic development in the coming year(s)
Slide 19: Magazine circulation sales
MAGAZINE CIRCULATION SALES Magazines circulation sales CAGR ’10 -’12 : 0.1% 2.500 2.140 2.065 2.024 2.027 2.069 2.000 179 169 174 170 167 226 216 215 211 207 1.500 472 448 EURm 446 433 436 183 179 175 175 179 1.000 365 357 354 355 358 500 695 675 665 670 680 ‐ 2008 2009 2010 2011 2012 The Netherland
Slide 20: Magazine advertising sales
MAGAZINE ADVERTISING SALES Magazines print advertising salesCAGR ’10 -’12: 0.4% 2.000 1.800 1.673 35 1.600 260 1.372 1.389 1.400 1.317 1.333 30 28 30 135 28 1.200 230 226 238 223 EUR m 120 116 118 123 1.000 691 800 509 485 492 513 600 118 400 108 101 104 110 128 111 109 112 117 200 306 264 255 253 2
Slide 21: Online advertising sales
ONLINE ADVERTISING SALES CAGR ’10 -’12 : 9.7% The Netherlands Finland Belgium Russia Hungary Czech Republic Romania Source: PwC Global Entertainment & Media outlook 2009-2013 Online advertising sales forecasts include search, display, classifieds and video/other
Slide 22: Key strategic themes: care for core magazine business
KEY STRATEGIC THEMES 1. Care for core - magazine business • Magazines are at the core of our operations: the most important revenue stream and profit contributor • To protect our market positions and safeguard our profitability, we will focus on our key brands and adapt our organization to challengi
Slide 23: Key strategic themes: stronger digital media player
KEY STRATEGIC THEMES 2. Become a stronger digital media player • We will strengthen and expand our current position in digital media • We will primarily utilize our current capabilities and assets and increasingly leverage them on an international scale
Slide 24: Key strategic themes: restructurings and organizational improvement
KEY STRATEGIC THEMES 3. Strategy-supporting restructurings and ongoing organizational improvement • We will focus on an adaptation of our magazine operations to meet structural market challenges • We will restructure the organization of our digital activities to speed up growth • Appointment of Chie
Slide 25: Driving operational efficiency
DRIVING OPERATIONAL EFFICIENCY • Closing loss-making titles without short-term turn-around potential • Moratorium on new launches • Total number of FTE - ultimo: 6,100 Acquisitions: End of 2008: 5,900 Net Info, + 130 FTE 6,000 Lux Media, + 56 FTE Autotrader, + 60 FTE 5,900 5,800 End of August 2009:
Slide 26: Driving operational efficiency: cost savings programmes
DRIVING OPERATIONAL EFFICIENCY • Initiating several cost savings programmes, e.g.: • Project Anders/Belgium: • Savings target €12 million, 69 employees (>10%) • Finland: • Restructuring media sales / marketing • Netherlands: • Closing FELICITAS hostess service, 163 employees • All print activities b
Slide 27: Driving operational effectiveness
DRIVING OPERATIONAL EFFECTIVENESS • Sanoma Magazines Advertising Resource Centre • CANALIS: WAN between BE, CZ, FI, HU and NL • PPG Group: collective procurement of paper/printing goods and services • SISU: SAP integration project (FI/NL) • Shared advertising system (FI/NL)
Slide 28: Building bridges by building capabilities
BUILDING BRIDGES BY BUILDING CAPABILITIES Our strength comes from working together and learning from each other • Strategic Leadership Programme • Brand project • Digital media organisation and projects
Slide 29: Capture consumers where ever they are
CAPTURE CONSUMERS WHERE EVER THEY ARE custom media augmented reality magazines online hype publishing digital reading women’s portals mobile media & iPhone apps advertising
Slide 30: Zo <¥
Zo <¥