Annual General Meeting of Alma Media Corporation, 14 March 2018 CEO s statement Kai Telanne, President and CEO
Financial statements 2017
Alma Media s strong growth continued in 2017 Revenue Adjusted operating profit 291,5 353,2 367,3 23,4 35,2 51,1 2015 2016 2017 MEUR -5,7-8,4-4,5 2015 2016 2017 Oikaistut erät
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% 133 157 % 44 40 49 57 78 84 95 104 MEUR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue from digital business Share of total revenue 4
Internationalisation as a driver of growth EBIT 2017 39% 61% Domestic Finland Foreign International Operations operations Revenue 2012 2017, MEUR 32 37 37 45 73 83 23% 22% Personnel 2017 286 262 261 245 279 282 77% 78% 33 % 67 % 2012 2013 2014 2015 2016 2017 Domestic Finland Foreign International Operations Not Allocated operations Domestic Finland Foreign International Operations operations 5
MEUR The balance sheet strengthened by the good results Equity ratio, 2011 2017 Net debt, MEUR and gearing, % 2011 2017 74,1 % 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 % -32,3 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017
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 0,00 2015 2016 2017 0,00 2015 2016 2017
Distribution of profit 2013 2017 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 2013 2014 2015 2016 2017 Dividend *, EUR 0.10 0.12 0.12 0.16 0.24 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 0,0 2013 2014 2015 2016 2017
#REF! Development of Alma s stock exchange rate 2008 2017 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 1.1.2008 2008 2009 2010 2011 2012 2013 2015 2016 2017 Alma Media OMX Helsinki (indeksoitu)
Long-term financial targets achieved in 2017 30% 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% 2013 2014 2015 2016 2017 2% 0% 10% 10% 7% 10% 18% 2013 2014 2015 2016 2017 0% 50% 63% 92% 78% 62% 2013 2014 2015 2016 2017 Reported Target level Reported Target level Reported Target level 10
Alma business segments 27.3.2018 11
All business segments improved result in 2017 Revenue (MEUR) 2017 Adjusted operating profit (MEUR) 2017 3,4 13,8-0,7 2,8-1,5 2,2 0,3 0,9 9,1 353,2 367,3 35,2 51,1 2016 Alma Markets Alma Talent Alma News & Life Alma Regions 2017 2016 Alma Markets Alma Talent Alma News & Life Alma Regions Konsernitoiminnot 2017
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 28,3 2015 2016 2017 MEUR 2015 2016 2017
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 8,0 2015 2016 2017 MEUR 2015 2016 2017
In Alma News & Life, digital advertising at a record level Revenue Adjusted operating profit 44,1 46,1 48,8 7,0 7,3 2,8 2015 2016 2017 MEUR 2015 2016 2017
Significant cost savings in Alma Regions Revenue Adjusted operating profit 135,2 127,7 126,3 8,3 8,5 9,3 2015 2016 2017 MEUR 2015 2016 2017
Strategy 17
Alma s strategy path media is becoming a service 2020 2005 2010 2005 The Internet becomes the The birth of the second new Alma cornerstone 2015 2020 New growth, platforms of the 2010 2015 Boosting growth future through company Growth and acquisitions and internationalisatio product n of digital services development
Major forces of change Consumer behaviour Economy in operating countries Competition Technology and data Regulation Marketing and Advertising
The advertising market was negative in 2017 25% 20% 15% 10% Monthly change in media advertising change 12/2016 12/2017 Source: Kantar TNS 5% 0% -5% -10% -15% -20% -25% Advertising sales total, chg % Newspaper advertising, chg % Online advertising, chg % 20
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
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 % 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5% 5% 30% 20% 6% 30% Messumedia Ulko- ja liikenne Elokuva Radio Verkko Televisio Painetut hakemistot Aikakauslehdet Sanomalehdet Source: Kantar TNS
In Alma, the digital business compensates for the decline in print media... 400 Printtiliikevaihto Digiliikevaihto Palveluliikevaihto Digiaste 43% 45% 350 38 40% 300 250 200 150 23 17 157 35% 30% 25% 20% 15% 100 247 172 10% 50 6% 5% MEUR 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0%
Operating profit, MEUR Operating profit, % and allows increased profitability 60 20 35,8 % 37,8 % 42,6 % 50 51,1 18 16 18,0 % 15,7 % 12,9 % 13,1 % 44 40 49 57 24,3 % 78 84 28,1 % 32,0 % 95 104 133 157 40 30 20 10 23,4 8,0% 35,2 10,0% 13,9% 14 12 10 8 6 4 2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Digitaalisen liiketoiminnan liikevaihto 0 2012 2013 2014 2015 2016 2017 Liikevoitto Liikevoitto % 0
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
Alma Media s operating environment and outlook for 2018 Operating environment in 2018 The Finnish economy is expected to experience strong growth in 2018. 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 51.1. 26