Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q3 2022 Earnings Presentation
43 slides from Alma Media Oyj's earnings presentation, November 2022
Slide 1: Alma Media – In the Digital Frontline, Investor Presentation Post Q3 2022
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST Q3 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
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 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 KPI's 2018 2019 2020 2021 1-9/2022 Unique visitors 5 303 00
Slide 8: Alma Consumer: A record-breaking result
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 are from November 2022 GDP change (%) Inflation (%) Unemployment (%) 2021 2022 2023 2021 2022 2023 2021 2022 2023 Croatia 13.1 6.0 1.0 2.7 10.1 6.5 7.6 6.3 6.3 Czechia 3.5 2.5 0.1 3.3 15.6 9.5 2.8 2.7 3.3 Estonia 8.0 -0.
Slide 18: Finnish advertising market
Finnish advertising market Alma gained market share MONTHLY CHANGE IN MEDIA ADVERTISING 9/2021–9/2022 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-9/2022 Source: Kantar TNS (1-9/2021)* 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
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: 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 23: Alma Media strategy
Alma Media strategy TRANSFORM THE CORE 1. • Continue to diversify from media to marketplaces and digital services • Develop marketplaces towards advanced digital platforms • Maximise group synergies through efficient co-operation GROW IN DIGITAL 2. • Diversify and develop new revenue streams in curr
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 jobly.fi 1 #1 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia v
Slide 25: Alma Media Brand House
Alma Media Brand House ALMA TALENT MEDIA ALMA TALENT SERVICES DIRECT MARKETING Digital data, content and marketplace services • Company and real estate • Competence development information • Business premises • Law • Dias • Business books MEDIA AND AD-FUNDED SERVICES VEHICLES AND MACHINERY HOUSING C
Slide 26: A Digital Footprint in 11 European Countries
A Digital Footprint in 11 European Countries Revenue by segment Revenue split Revenue by geographical area Media 37% Finland Alma (Digital 57%) Consumer 68% 34% Alma Talent 36% Alma Career Services 21% Marketplaces 30% 42% International 32% (Digital 100%) Group Revenue 77% digital 54 % of adj. opera
Slide 27: M&A Tapping into New Digital Revenue Pools
M&A Tapping into New Digital Revenue Pools ACQUISITIONS ● Alma • Nettix Oy Mediapartners • Etua.fi (40 %) ● LMC ● Jobote (35%) • Netello (60%) ● Profesia ● Nettikoti ● AutoJerry • Suomen ● Kolektiv • Alma Career ● MojPosao ● Autosofta ● Rantapallo ● Urakka- ● Katsastus Tukkuautot ● DIAS (80%) (17%)
Slide 28: Digital transformation
DIGITAL TRANSFORMATION 28
Slide 29: Transformational strategy in progress
Digital revenue Transformational strategy in progress in Q3 2022: 82.3% TRANSFORM THE CORE GROW IN DIGITAL INTERNATIONALISE • Digital media subscriptions • From job boards to staffing and add-on • Direct search and reverse recruiting 37% digital share of content revenue (2022*) career services Acqui
Slide 30: Digital transformation has led to a major change in the business mix
Digital transformation has led to a major change in the business mix MEUR Q3/22* 80.0% 15 23 17 Services Digital Print 247 Share of digital 247 business 46 * Revenue, rolling 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* 12-months end-Q3/2022 30
Slide 31: Two decades of digital transformation
Two decades of digital transformation 2020 and beyond 2015-2020 More balanced 2010-2015 business portfolio Acceleration of growth utilising the 2005-2010 Growth and possibilities of internationalisation digital Online becomes of digital services significant Sale of MTV3 broadcasting Acquisition of C
Slide 32: Digital transformation driving operational gearing
Digital transformation and change in business mix driving operational gearing * Continuing operations, Rolling 12 months end Q3/2022 REVENUE ADJUSTED OPERATING PROFIT MEUR MEUR 2022* 80.0 % 90% 2022* 25.0 % 80% 23.9 % 15 22 70% 20.0 % 95 60% 15.0 % 50% 247 40% 2014 10.0 % 32.0 % 30% 2014 7.2 % 20% 5
Slide 33: 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 34: 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 35: Thank You! Questions?
Thank You! Questions? • Upcoming events in the investor calendar: • 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, 21 April 2023 • Interim report for January–June 20
Slide 36: Summary: Alma Media as an investment
Summary Alma Media as an investment • Leading market position and brands in key areas • Business mix well balanced – from media to services • Current products and customer base enables extensions in value chain • Strong presence in CEE is a great basis for further international expansion • B2B infor
Slide 37: Appendix
Appendix 37
Slide 38: Shareholders and Analysts
Shareholders and Analysts Shareholders at the end of October 2022 % of Shares Sell-side analysts following ALMA 1 Otava Oy 29.18 Broker Analyst 2 Mariatorp Oy 19.03 Carnegie Pia Rosqvist-Heinsalmi 3 Ilkka-Yhtymä Oyj 10.92 Nordea Sanna Perälä 4 Varma Mutual Pension Insurance Company 6.83 OP Kimmo Ste
Slide 39: Strategy well aligned with sustainable business
Strategy well aligned with sustainable business Alma Media`s updated its sustainability programme based on a comprehensive materiality analysis and the new climate target were validated by Science Based Target initiative in June 2022. Today Alma personnel is committed to ESG target as an incentive b
Slide 40: EURM 275 revenue, EURM 61 adjusted operating profit
EURM 275 11 Revenue European countries Scope 1 and Scope 2 emissions EURM 61 542 Adj. operating profit tCO2-eq 77% 100+ of revenue from digital Digital services and applications 1 500 42/58 abroad / in Finland professionals* % of employees ALL FIGURES IN *excl. telemarketers FY2021
Slide 41: Company in short
Company in short Alma Media is a digital service business and media company with a strong capacity for renewal. We are building sustainable growth from media to services, providing content and services that benefit users in their everyday lives, work and leisure time. In Finland, our best-known bran
Slide 42: We can see our way forward, clearly
WE can see our way forward, clearly on our journey of transformation We are… That aims to… Because we want to… The international Inspire human curiosity Accelerate sustainable growth of service and content revolution and choice individuals, businesses and society. company By creating services with a
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