2019 årsrapport & forventninger til 2020 ABG, 7. februar 2020 · North Media Online. Q1 2020...

North Media – Årsrapport 2019

2019 årsrapport &forventninger til 2020ABG, 7. februar 2020

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ABGSC - INVESTOR DAY 27 MAY

1. Corporate profile

2. Q1 2020 o Highlightso COVID-19 update o Group financial highlights

3. Business areas o Q1 2020 resultso Objectives for 2020

4. Group outlook for 2020

5. Q&As

ABGSC - INVESTOR DAY 27 MAY 2

Kåre Stausø WighGroup Executive Director & CFO

Forward-looking statementsThis presentation contains statements about the future, including expectations for 2020, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expected. Please see the section on risks and risk management on pages 46-47 of our 2019 Annual Report

Agenda

Connecting the business community and consumers

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Digital access solutions

Intermediary for bank loans

Job agentsLetting agentsNationwide distribution of leaflets, advertisements etc. to 2.3 million households. ~70% receive leaflets.

Digital advertising platform

Retailers, estate agents and other types of advertiser Landlords Employers Banks Caregivers and

couriers


Consumers in a broad sense House hunters Job seekers Borrowers Households

Market leading high-volume businesses

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Consumers in a broad sense House hunters Job seekers Borrowers Households

25+ millionLeaflets distributed each week

450,000+Users of minetilbud.dk

~100,000Lettings of Danish

rented homes arranged in 2019

~8 millionDoors opened

in 2019, 33,000 users

~30,000Loans arranged in

11 countries in 2019

~30,000Job placements

In 2019


Retailers, estate agents and other types of advertiser Landlords Employers Banks Caregivers and

couriers

Dividends and buyback

DKK million

Focus on long-term value creationIncreased earnings

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Strong capital resources


• COVID-19 pauses continued earnings growth

• Focus on profits and optimization in all activities

• Capital resource target: DKK ~550 million

• Develop current activities – acquire related activities

• Dividends and buybacks

• Decision regarding interim dividends due later in 2020

• Ambition to pay constant, attractive dividends

-30

0

30

60

90

120

150

180

2016 2017 2018 2019 2020E

EBIT before special items, DKK million

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20

40

60

80

2016 2017 2018 2019 2020

Dividends Buybacks

Development in Q1 2020, DKK million

Highlights in 2020

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Better than expected results in Q1 2020

• 4% revenue growth - 5% growth in continuing activities

• Operating profit at DKK 63 million – improved by approx. DKK 38 million

• Some negative impact from COVID-19 as of mid-March

North Media Aviser divested from 1 May 2020

• Impacting operating profit by DKK -3 million in first quarter

• Recognised under discontinued operations effective from the second quarter

• Total profit 2020 DKK 5-6 million

2020 group outlook updated

• Operating profit on par with 2019

0

50

100

150

200

250

300

350

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

0

20

40

60

80

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Group revenue, DKK million

EBIT before special items, DKK million


Stable operations through COVID-19 crisis

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• Close to normal operations on terminals, distribution unaffected

• White collars primarily working from home

• Gradual, controlled reopening of offices from 10 May

• No lay-offs in continuing activities

Minor positive impact

Major negative impact

Virtually neutral effect

Limited negative impact

COVID-19 impact


Group financial highlights

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Operating margin

22.9%(Q1 2019: 9.6%)

Return on securities

-11.2%(Q1 2019 : 22.4%)

Return on equity

1.9%(Q1 2019 : 11.9%)

Other key figures and financial ratiosGross Margin (%) 61.3 49.7 52.1Return on capital employed (ROIC) 19.2 7.5 47.7Earnings per share, (DKK) 0.7 3.5 11.0

Revenue growth

4%(Q1 2019 : -5%)

Financial results (DKK million) Q1 2020 Q1 2019 2019

Revenue 274.7 263.9 1,130.0EBITDA 70.7 32.9 190.6Depreciation 7.7 7.6 30.3EBIT before special items 63.0 25.3 160.3Special items, net -0.9 2.8 1.7Operating profit (EBIT) 62.1 28.1 162.0Return on securities -44.8 57.7 122.1Financial items, net -1.3 0.5 -11.6Profit after tax 12.4 67.3 205.3


FK DistributionQ1 2020 results

• 4% revenue growth driven by period deferrals

• COVID-19 impact volumes negatively from mid-March

• Optimizations increase profits: switch from two to one weekly distribution

• Test packing for Deutsche Post

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Objectives for 2020

• Switch from two to one weekly distribution

• Sale of new products, e.g. journals and direct mail

• Ongoing optimization of production process

• Linking physical and digital services

(DKK million) Q1 2020 Q1 2019 2019

Revenue 223.1 214.5 926

EBIT bsi 64.0 29.8 172

Financial highlights


(DKK million) Q1 2020 Q1 2019 2019

Revenue 23.8 20.8 86

EBIT bsi 4.3 1.2 7


North Media OnlineQ1 2020 results

• 14% revenue growth, EBIT tripled

• BoligPortal: 18% revenue growth, launch of digital showings of rental listings

• Ofir: Flat revenue despite fewer private sector job listings from mid-March

• 50%-owned Lead Supply: Improved SEO-traffic; loan activity reduced

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Objectives for 2020

• BoligPortal: New services, improve use of data, partnerships

• Ofir: Strengthen focus on SoMe, improve infrastructure

• Lead Supply: Strengthen position in main markets, increase traffic


BoligPortal

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Increasing demand despite COVID-19 crisis

8,521 new rental homeslisted last 30 days*

13,528 usershave found a home during the last

two months** As of 5 May 2020

Number of listed rentalhomes in Q1 2020

+25% growth(vs. Q1-19)

Number of visitors on site in Q1 2020

+26% growth(vs. Q1-19)

Digitalshowing

• April 2020: 12% more listed rental homes and 35% more visitors

• Unrest on the real estate market increases demand for rental homes

• Continuous development of new services to landlords and tenants

• Digital showing launched in March 2020


BEKEYQ1 2020 results

• 21% revenue growth

• Homecare segment profitable: 67 municipality customers in DK and NO

• SmartRelays on approx. 23,000 stairwells in Copenhagen = >50% coverage

• COVID-19 delays some municipality implementations and SmartRelay installations

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(DKK million) Q1 2020 Q1 2019 2019

Revenue 8.0 6.6 24

EBIT bsi -1.4 -1.8 -10

Objectives for 2020

• Extend coverage in Greater Copenhagen from approx. 50% to at least 70% of stairwells

• Establish cooperation with selected distribution companies – COVID-19 accelerates demand for home deliveries

• Further develop products and systems

• Enter into more agreements with municipalities



Outlook for 2020

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7 Maj 2020

Revenue, DKKm

1,075-1,125(2019: 1,130)

EBIT before special items, DKKm

160-190(2019: 160)

6 February 2020 18 March 2020

Guidance

suspendeddue to the COVID-19 crisis

Revenue and profits

lowerthan originally expected

Major uncertainty related to COVID-19: Reservation for gradual opening of society with no setback

EBIT before special items, DKKm

On par with 2019(2019: 160)

Capital resources, DKKm

~540(2019: 485)


Continued value creation

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Growth focus

DIGITAL

Optimization focus

• Solid results and continued optimization potential in all businesses

• Growth potential in digital businesses at various maturity points

• Significant capital resources supporting long term development and return to shareholders


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Investor relations contact

CEO Kåre Stausø Wigh T: (+45) 3957 7000

E: [email protected] M: (+45) 2565 2145Q&A - Thank you!


TV 1.7

Other offline1.5

Display 1.0

Search (Generic + brand)2.4

Other online1.6

Leaflets1.8

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

0% 10% 20% 30% 40% 50% 60%

ROI

Share of return

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The leaflet is a powerful tool for retailers Approx. 70% of households receive leaflets

Approx. 20% of households make their own choice via NoAds+

• Retailers have a high return (ROI) from leaflets

• Results for advertisers using leaflets

Definitions and notes :- ROI: Return on (media) Investment. - Share of return: percentage share of media-driven sales attributable to each media channel. Example: Leaflets are attributable

to 43% of media-driven sales, based on all advertisers using the channel.- The size of the bubble illustrates the average media budget.

Source: Data Intelligence, 2019

The figure shows the average ROI and share of the return, broken down by media group from the database in the period 2016-2018. 17 brands are included in the results.

Source: PDK and FK


83.00% 81.50% 79.00% 78.00%71.20% 70.40%

61.70%53.80%

49.80% 50.20% 49.70%

17.00% 18.50% 21.00% 22.00%28.80% 29.60%

38.30%46.20% 50.20% 49.80% 50.30%

0.20% 1.80%11.20%

20.10%24.30% 21.50% 19.70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

%-of all households (january)Receives all ads NoAds NoAds+

2019 årsrapport & forventninger til 2020 ABG, 7. februar 2020 · North Media Online. Q1 2020...

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