Annual General Meeting of Alma Media Corporation, 14 March CEO s statement. Kai Telanne, President and CEO

Transcription

1 Annual General Meeting of Alma Media Corporation, 14 March 2018 CEO s statement Kai Telanne, President and CEO

2 Financial statements 2017

3 Alma Media s strong growth continued in 2017 Revenue Adjusted operating profit 291,5 353,2 367,3 23,4 35,2 51, MEUR -5,7-8,4-4, Oikaistut erät

4 Digital business as an engine for growth 42.6% Share of digital business of Group revenue 35.8% 37.8% 32.0% 28.1% 24.3% 12.9% 13.1% 15.7% 18.0% % MEUR Revenue from digital business Share of total revenue 4

5 Internationalisation as a driver of growth EBIT % 61% Domestic Finland Foreign International Operations operations Revenue , MEUR % 22% Personnel % 78% 33 % 67 % Domestic Finland Foreign International Operations Not Allocated operations Domestic Finland Foreign International Operations operations 5

6 MEUR The balance sheet strengthened by the good results Equity ratio, Net debt, MEUR and gearing, % ,1 % 110,5 % 57,0 % 36,5 % 34,4 % 42,6 % 42,5 % 45,7 % 50,9 % 97,6 68,5 % 59,4 % 62,3 71,1 76,2 41,4 % 57,1 25,4 % 40,2-33,4 % -32,

7 EUR EUR EPS almost doubled Earnings per share, EUR Shareholders equity per share, EUR 0,45 0,40 0,35 1,80 1,60 0,30 1,40 0,25 1,20 0,20 0,15 0,10 0,05 0,13 0,20 0,39 1,00 0,80 0,60 0,40 0,20 1,35 1,44 1,66 0, ,

8 Distribution of profit The Board of Directors proposes that a dividend of EUR 0.24 per share be paid for 2017, a dividend growth of 50% Dividend * and effective dividend yield Dividend *, EUR Effective dividend yield 3.3% 4.4% 4.0% 3.2% 3.3% 0,5 0,4 * dividend and capital repayment combined Voitonjako / osake Tulos / osake 0,3 0,2 0,1 0,

9 #REF! Development of Alma s stock exchange rate ,00 12,00 10,00 8,00 6,00 4,00 2,00 0, Alma Media OMX Helsinki (indeksoitu)

10 Long-term financial targets achieved in % Digital business growth (%) 20% Return on investment ROI (%) 100% Dividend payout ratio (%) 25% 18% 20% 16% 14% 80% 15% 12% 10% 60% 10% 8% 6% 40% 5% 4% 20% 0% 8% 12% 10% 28% 17% % 0% 10% 10% 7% 10% 18% % 50% 63% 92% 78% 62% Reported Target level Reported Target level Reported Target level 10

11 Alma business segments

12 All business segments improved result in 2017 Revenue (MEUR) 2017 Adjusted operating profit (MEUR) ,4 13,8-0,7 2,8-1,5 2,2 0,3 0,9 9,1 353,2 367,3 35,2 51, Alma Markets Alma Talent Alma News & Life Alma Regions Alma Markets Alma Talent Alma News & Life Alma Regions Konsernitoiminnot 2017

13 Alma Markets led the way in growth and the development of profitability Revenue Adjusted operating profit 58,3 69,4 83,2 13,9 19,3 28, MEUR

14 In Alma Talent, cost synergies of Talentum merger were achieved in full Revenue Adjusted operating profit 114,0 113,2 12,4 14,6 58,5 8, MEUR

15 In Alma News & Life, digital advertising at a record level Revenue Adjusted operating profit 44,1 46,1 48,8 7,0 7,3 2, MEUR

16 Significant cost savings in Alma Regions Revenue Adjusted operating profit 135,2 127,7 126,3 8,3 8,5 9, MEUR

17 Strategy 17

18 Alma s strategy path media is becoming a service The Internet becomes the The birth of the second new Alma cornerstone New growth, platforms of the Boosting growth future through company Growth and acquisitions and internationalisatio product n of digital services development

19 Major forces of change Consumer behaviour Economy in operating countries Competition Technology and data Regulation Marketing and Advertising

20 The advertising market was negative in % 20% 15% 10% Monthly change in media advertising change 12/ /2017 Source: Kantar TNS 5% 0% -5% -10% -15% -20% -25% Advertising sales total, chg % Newspaper advertising, chg % Online advertising, chg % 20

21 The share of advertising in the economy is not rising 1 Share of advertising in the Finnish GDP 0,9 0,8 0,7 0,6 0,9 0,82 0,78 0,75 0,78 0,8 0,8 0,81 0,81 0,85 0,85 0,76 0,76 0,76 0,73 0,74 0,74 0,82 0,81 0,75 0,75 0,73 0,7 0,63 0,61 0,62*estimat e 0,6 0,6 0,5 0,4 Sources: Finnish Advertising Council, Alma Media s estimate

22 The structural transformation of media advertising continues Media advertising by category 100 % 3% 3% 1% 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 20% 16% 57% 0 % % 5% 30% 20% 6% 30% Messumedia Ulko- ja liikenne Elokuva Radio Verkko Televisio Painetut hakemistot Aikakauslehdet Sanomalehdet Source: Kantar TNS

23 In Alma, the digital business compensates for the decline in print media Printtiliikevaihto Digiliikevaihto Palveluliikevaihto Digiaste 43% 45% % % 30% 25% 20% 15% % 50 6% 5% MEUR %

24 Operating profit, MEUR Operating profit, % and allows increased profitability ,8 % 37,8 % 42,6 % 50 51, ,0 % 15,7 % 12,9 % 13,1 % ,3 % ,1 % 32,0 % ,4 8,0% 35,2 10,0% 13,9% Digitaalisen liiketoiminnan liikevaihto Liikevoitto Liikevoitto % 0

25 Strong cooperation synergies create value for customers DATA AMS Alma Media Solutions ALMA THEMES ECOM/ Content and Services TRAFFIC MANAGEMENT Alma Media s strategic initiatives

26 Alma Media s operating environment and outlook for 2018 Operating environment in 2018 The Finnish economy is expected to experience strong growth in Alma Media s significant operating countries in Eastern Central Europe, such as the Czech Republic and Slovakia, are expected to see economic growth of 3 4%. The structural transformation of the media will continue in 2018; online content sales will grow, while the demand for print media will decline. Outlook for 2018 In 2018, Alma Media expects its full-year revenue to remain at the previous year s level and its adjusted operating profit to increase from the 2017 level. The full-year revenue for 2017 was MEUR 367.3, and the adjusted operating profit was MEUR

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