harri-pekka kaukonen president and ceo, sanoma annual general meeting … · harri-pekka kaukonen...

Harri-Pekka Kaukonen President and CEO, Sanoma Annual General Meeting 9 April 2014

Market environment

“Thunderstorm” 1. Digital transformation 2. Weak macroeconomy

Photo: Rainer Knäpper, Free Art License (http://artlibre.org/licence/lal/en)

9 April 2014 Annual General Meeting 2014 3

6%

14%

42%

26%

12%

23%

10%

43%

22%

3%

64%

1%

24%

11%

1%

Print Radio TV Internet Mobile

Time spent (USA 2012) Advertising expenditure (USA 2012) % of Sanoma's net sales in 2013 (Finland and the Netherlands)

Consumer and advertiser behaviour is changing – and affecting us


= =

=

People spend a daily

average of around 4.4 hours

of their free time at the

screen

Non-screen-based encounters Screen-based encounters

=

Source: IAB, eMarketer, Mary Meeker and Sanoma

-30

-20

-10

0

10

20

30

-30

-20

-10

0

10

20

30

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013

Advertising market Finland Advertising market Netherlands Consumer confidence Finland Consumer confidence Netherlands

Change in the market environment


Source: European Commission (consumer confidence), TNS Gallup and Sanoma (advertising market)

Advertising market development


Sources: Sanoma (Netherlands), TNS Gallup (Finland)

Finland FY/2010 FY/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013

Newspapers +2 +3 -2 -13 -9 -13 -18 -17 -13 -15

Magazines -3 +2 -2 -6 -9 -14 -16 -15 -7 -10

TV +12 +7 +5 -4 -2 -3 -10 +3 +1 -1

Online +33 +25 +14 +1 +8 +14 +3 +6 +7 +6

Entire market +7 +7 +1 -8 -5 -7 -13 -8 -6 -7

Netherlands FY/2010 FY/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013

Magazines +3 -4 -1 -11 -13 -14 -17 -16 -15 -18

TV +10 +4 -3 -5 -7 -7 -5 -4 -1 +3

Online +28 +9 +7 +7 -9 -2 -1 -2 -5 -5

Entire market +13 +5 -4 -5 -8 -6 -5 -4 -4 -2

Advertising market* Change (%), compared to the previous year

Strong measures

Net sales (EUR million) Personnel (FTE)

800

100

250

300 300

1 700

1 700

1 400

0

500

1 000

1 500

2 000

2 500

3 000

2010 The Group 2013 The Group 2013 Netherlands,Finland and Learning

Trade, other and eliminations Learning Media

1,700

2,100

2,800

6 300

900

1 700

1 600 1 600

7 400

6 600

4 900

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2010 The Group 2013 The Group 2013 Netherlands,Finland and Learning

Trade, other and eliminations Learning Media

6,500

9,000

15,400


8

Net sales

Operating profit before non-recurring items

Earnings/share before non-recurring items

Dividend/share

EUR

* The Board’s proposal to the AGM. The Board also proposes that it be authorised to decide on an extra

dividend of EUR 0.20 per share at the maximum.

2.4 billion

231 million

0.77

0.60

2012 2013

2.1 billion

155 million

0.54

0.10*

Annual General Meeting 2014 9 April 2014

Sanoma’s strategy

Market leader in consumer media and learning in our countries of operation

Our strategic aspiration

Our strategic goals

Profitability & balance sheet

Growth

Cost-saving programme and divestments

Healthy balance sheet

New organisation

Corporate culture

Renewal of products and services

Growth 2016


Mission: Get the world – Sanoma helps people access and understand the world

Sanoma’s strategy

Organisation



Our strategic goals


Growth Renewal of products and services

Growth 2016



Sanoma’s strategy

Organisation

Focus areas: consumer media and learning

12

TV & radio

Magazines

Newspapers

Digital

Strategic business units

Are

as o

f consum

er m

edia

Learning Others

Media Russia & CEE

Other operations

Media Belgium

Media

Netherlands

Media

Finland

Net sales

EUR 420 million

Net sales in 2013

EUR 300 million

Digital/hybrid products

and services: 44% of

net sales

(EUR 130 million)

Operating profit before

non-recurring items: 18%

of net sales

Net sales in 2013

EUR 690 million

Digital media and new

services: 46% of

net sales

(EUR 320 million)



of net sales

Net sales in 2013

EUR 680 million

Digital media and new

services: 28% of

net sales

(EUR 190 million)



of net sales


0 200 400 600 800

Otavamedia

Keskisuomalainen

TS-Yhtymä

Alma Media

MTV

Yle

Sanoma

0 200 400 600 800

STER

Audax

RTL NL

De Persgroep NL

Wegener

Telegraaf Media

Sanoma

Market leader in consumer media

Finland Netherlands


#1 #1

#1 in consumer magazines

#1 in online advertising

#2 in commercial television

#1 in digital news services

#1 in newspapers

#1 in magazines

#1 in online advertising

#2 in commercial television

#1 in commercial radio

EUR million EUR million

The logic of consumer media


1.

Reach

2.

Consumer

insight

3.

Marketing

solutions

15

2.2 million readers weekly in different

channels

Growth in digital subscriptions: 115% in

2013


1. Increasing reach: examples

The largest radio channel in Finland

Weekly reach: more than 1.1 million,

growth 32%

The most popular magazine in Finland:

880,000 readers

Launched in the autumn of 2013, its digital

service has more than 20,000 subscribers

Nearly 8 million video starts monthly

Reach increased by more than 25% in 2013

3.0 million readers in different channels

Mobile reach increased by 153%

The largest news service in the

Netherlands

900 million page views monthly

A news service for women

Its reformed version multiplied the number of

monthly visitors to 2.2 million

A news service based on videos

152 million video starts in 2013, growth

40%

A leading television channel in the

Netherlands

Utopia, a new format, attracted an average

of 1.0 million viewers in 2014

Consumer experience

Targeted advertising

Digital content

2. Customer insight – Big Data offers new business opportunities

Consumer insight Targeted offering Effective

marketing

Behavioural

segmentation

Interesting target

groups

Mobile and location

targeting

Personalised

content

Digital product

development

Product

innovations

Examples:

Sanoma account: concerns

around 1 million Finns

Advertising campaigns targeted

based on age, gender and

interests

Startpagina Search: customised

content for consumers

16 Annual General Meeting 2014 9 April 2014

Sanoma is the media company with the widest reach in Finland

and the Netherlands, with target groups such as:

– Sports

– Science and technology

– Fitness and well-being

Customised marketing solutions

– The entire value chain, from offline and online advertising solutions to

the management of materials and printing services

– One-stop-shop principle

Continuous marketing programmes based on Sanoma’s Big Data

3. Marketing solutions


Finland

Market position: #1

Net sales:

~ EUR 55 million

Sweden

Market position: #2

Net sales:

~ EUR 30 million

Netherlands

Market position: #2

Net sales:

~ EUR 95 million

Belgium

Market position: #1

Net sales:

~ EUR 35 million

Poland

Market position: #1

Net sales:

~ EUR 70 million

Global market

Market position: a

leading player in

online learning

Net sales:

~ EUR 10 million

Market leader in learning


http://www.google.fi/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=-4fKiOgLOjLiNM&tbnid=jM9gkn9vs8Yh9M:&ved=0CAUQjRw&url=http://www.zgierz.znaangielski.pl/pages.php?page_id=68&ei=z4s4UqKmAsboswa-2YDoCA&psig=AFQjCNHhiZrK4q-FKy42D0B4WxIBQy7exg&ust=1379523914131829

http://www.google.fi/url?sa=i&source=images&cd=&cad=rja&docid=2A7hPUB0ZI4cyM&tbnid=U_0C2g6Zqiv0lM:&ved=0CAgQjRwwAA&url=http://www.trifork.nl/en/home/malmberg-case-study.html&ei=FIs4UoDaBsSX4wS-rYGICQ&psig=AFQjCNGorXm4QLrHdFcxgIl8X_6Wcwedog&ust=1379523732158196

We create added value by being close to the learning process

Teachers need help

with reducing their workload

Learning

results

Management of data and reports

Personnel management

Financial management

Planning of the school

year

Management of operations

Identification of needs

Evaluation and selection

Monitoring

Evaluation of results

Practice

Coaching

Preparation

Testing and evaluation

Theory

Principals need

management tools

Parents want guidance for their children


1,000,000

exercises were

completed on the

Bingel digital

service in a week

The number of

exercises

completed grew

tenfold during the

last 12 weeks of

2013

More than

1,000,000

students use

Malmberg’s

learning

application

More than 800 e-

textbooks were

published on the

YDP digital

bookshelf

The Sanoma Pro

working

environment

for teachers

reached a

penetration rate of

90%

Digitised learning: examples




Our strategic goals


Growth




Growth 2016



Sanoma’s strategy

Organisation

A cost-saving programme of EUR 100 million

Measures include:

Sales – harmonisation

Magazines in Finland – 3T, Iiris and Kodinrakentaja

Helsingin Sanomat – further development of editorial

processes

IT – improvement of operational efficiency

Financial Shared Services Centre – adjustment to the

changing operating environment

Printing operations – capacity optimisation

Magazines in the Netherlands – portfolio optimisation



Balance sheet tune-up Divested operations and properties

Other operations

Press distribution

Lehtipiste

Properties

Sale and leaseback

of Sanoma House

and Sanomala

Learning

materials

Hungary

Media operations

Bulgaria

Media operations

Romania

Media operations

Slovenia

Media operations

Serbia

Media

operations

Czech Republic

Divestments

total around EUR 300

million in cash



Our strategic goals


Growth



New organisation

Corporate culture


Growth 2016



Sanoma’s strategy

Organisation

Marketing

and

development

(1,400)

Technology

(800)

Creative content

(1,600)

Personnel number in parentheses


Media company as a source of innovation

* Media Finland, Media Netherlands, Learning

Sanoma’s

core operations*

(6,600)

Sanoma Accelerator

Open Innovation Accelerator

Internal Ventures

Sanoma Ventures

New approaches to innovation


External

Internal

Ide

as M

ark

et

Changes in management

27

TV & radio

Magazines

Newspapers

Digital

Strategic business units

Are

as o

f consum

er m

edia

Learning Others

Media Russia & CEE

Other operations

Media Belgium

Media

Netherlands

Media

Finland


Pekka Soini Peter de Mönnink John Martin

Strategy implementation


Growth



New organisation

Corporate culture


Growth 2016


Strategy implementation at Sanoma

Organisation

Sanoma 2016

Smaller and more focused

Strong growth in digital

media and new services

Return to organic growth

Better profitability

Healthier balance sheet


Thank you!

harri-pekka kaukonen president and ceo, sanoma annual general meeting … · harri-pekka kaukonen...

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