Talentum Varsinainen yhtiökokous 27.3. 2015, Helsinki
The history of Talentum 1930 1990 2000 2010 1938 Talouselämä is founded 1955 Suomen Laki is published 1961 Insinöörilehdet Oy and Insinööriuutiset are founded 1982 Tietoviikko is created 1988 Insinöörilehdet Oy and Talouselämä Oy get listed in Helsinki stock exchange. The name Insinööriuutiset is changed to Tekniikka&Talous 1990 Talentum Oy is created from the joining of Insinöörilehdet Oy and Talouselämä Oy 1994 Mainosuutiset is regenerated, which leads to the creation of Markkinointi&Mainonta 1995 Talentum buys the majority of Suoramarkkinointi Mega Oy 1998 Talentum Oyj is included in Helsinki Stock Exchange s main list. Mediuutiset Oy Ab is founded in order to start publishing Mediuutiset-magazine 2004 Talentum purchases Arvopaperimagazine 2005 Talentum purchases the Swedish company Ekonomi & Teknik Förlag Ab, which is later rebranded as Talentum Sweden AB 2007 Talentum Sweden purchases Swedish magazines Arbetarskyddand Dagens Media 2010 Talentum buys IIR Finland Oy and the company name is changed to Talentum Events Oy 2013 Talentum publishes the new Summa digital service. Tekniikan Historia magazine is founded 2014 Talentum purchases Tietokonemagazine. Talentum s digital services are broadened with Talentum Fokus and Talentum Verkkokirjahylly
Roadmap from traditional print house to a multimedia company Major drop occurred 2008-2010 Advertising sales dropped 36% in Talentum Recruitment advertising dropped 40% in Talentum Finnish market decreased 23%, Sweden 31% Mindset changes We realized that the good times would not come back i.e. recruitment advertising sales as main profit generator Disposed of non-core assets and created new brand based strategy Focus on the strongest brands leveraging them to create new offerings (Print + Online + Events) 2008 2009 2010 2011 2012 2013 2014 2015 2016 Waited for a recovery that never occurred Systematic work with the following priorities Content sales (emphasis on profit generation) Product advertising sales (out-bound sales strategy) Cost savings, productivity and increased cost base variability Online development (Talentum Summa)
Strategy in brief (Competitive advantage) Professional information at the center Talentum s competitive advantage lies in its high quality content, that professionals need in order to perform and succeed Content is produced for precisely and carefully chosen target groups Content is shared through various channels according to the needs of our customers
Brands
Acquisition and integration of the Sanoma Pro B2B business in 2014 The business provides up-to-date digital services and training, as well as publishing business books for professionals in the fields of taxation, financial administration, law and supervisory work. The key products in the acquired business are the digital Fokus service and Verkkokirjahylly ("Online Bookshelf"). The acquisition diversified the offering and customer base of the Books and Legal Training segment and contributed to Talentum's market leadership in this field The acquisition has been excellent both what comes to the deal itself as well as to the integration into the existing book and legal training business It has also strongly boosted our digital sales, positioning and business transformation Total Group digital sales in 2014 was 9,2 MEUR (out of which 5,8 MEUR in Finland and 3,3 MEUR in Sweden) It showed that Talentum has, after some less successful acquisitions in the past, a strong ability in integrating acquired businesses and the segment has become a central part within Talentum Group
Net sales Net sales and EBIT development 2010-2014 (M ) (continuing operations) Guidance for 2015: Talentum estimates that its net sales will remain approximately at the same level as in 2014 and that its operating income (EBIT) without non-recurring items will be higher that in 2014 100 90 80 70 60 50 40 30 74,1 2,0 83,5 2,6 77,2 2,4 74,5 3,1 4,1 72,3 4,5 4 3,5 3 2,5 2 EBIT 20 10 0 EBIT-%: 2,7% 3,1% 3,1% 4,2% 5,7% 2010 2011 2012 2013 2014 Year of disposals Net Sales EBIT* Result improvement 1,5 1 * Excluding non-recurring items
0,07 Development of profit distribution per share Five year cumulative profit distribution 8,8 MEUR 0,06 0,06 0,05 0,05 0,04 0,04 0,03 0,03 0,02 0,02 0,01 0 * 2010 2011 2012 2013 2014 *) Proceeds from disposals Board proposal
Net sales 2014 development by segment 30,0 25,0 20,0 Magazines Finland 25,5 24,3 Magazines Sweden Events Books and LT Direct marketing Other 19,9 18,1 M 15,0 10,0 12,6 11,5 8,1 11,6 10,5 10,8 5,0 0,0-5,0 2013 2014-3,1-3,0 Total net sales 72,3 M (74,5 M )
EBIT 2014 development by segment Excluding one-off items 5,0 4,0 3,0 Magazines Finland 3,0 2,5 Magazines Sweden Events Books and LT Direct marketing Other Total 3,1 4,1 M 2,0 1,0 0,0-1,0-2,0-0,2 0,2 0,2-0,4 0,7-1,3 2013 2014 1,2 1,0-1,2-1,1
Group balance sheet 2014 60 Balance sheet at 31.12.2014 EUR 51,8 million (EUR 49,8 million) M 50 40 30 Goodwill and other intangible assets; 34,3 Equity; 18,8 Advances received; 11,9 Statement of the financial position at the end of 2014 increased EUR 2 million compared to 31.12.2013 Interest-bearing net liabilities were EUR 0,7 million (EUR 0,8 million) Interest-bearing loans and borrowings amounted to EUR 5,4 million (EUR 5,1 million) Goodwill and other intangible assets were 66,3 % of total assets (65,5 %) 20 10 0 Other assets; 2,9 Receivables; 8,9 Cash; 4,7 Assets Other liabilities; 4,0 Financial liabilities; 5,4 Trade and other payables; 11,6 Equity and liabilities Change in working capital was EUR 1,6 million (EUR 1,4 million) Working capital is negative as usual, because liabilities include subscription fee advances received from customers EUR 11,9 million (EUR 10,2 million)
Group cash flow and net debt 1-12/2014 M 5,0 4,0 3,0 2,0 1,0 0,0-1,0-2,0-3,0-4,0 Operating activities Investments Financing 3,3 4,4-0,8-1,7-1,3-2,7 2013 2014 Cash flow generated from operating activities was higher than previous year following the change in operating income Cash flow generated from investment activities was lower than previous year due to the SanomaPro B2B acquisition Cash flow generated from financing activities was lower due to lower amount of bank overdraft limits in use and the SanomaPro B2B acquisition Net debt M 6 5 4 3 2 1 0 5,1 5,4 Interest bearing liabilities 4,3 4,7 Cash and cash equivalents 0,8 Net debt 0,7 Cash and equivalents were EUR 4,7 million (EUR 4,3 million) Gearing was 3,8% (4,4%) Equity-ratio was 47,2% (47,4%) 2013 2014
Management remuneration Salaries and bonuses paid to CEO and the other members of the Group management team in 2014 (in 2013) 1,000 Fixed salary Bonus salary Other financial benefits Total salary CEO 230 (240) - 90 (67) 320 (307) Other executive management 546 (726) - (21) 229 (391) 775 (1,138) Total 775 (966) - (21) 319 (458) 1,095 (1,444) In 2014, other financial benefits include eur 23 thousand costs arising from the share-based incentive plan