2019 årsrapport & forventninger til 2020 · cohesion. Low costs on distribution of local...

North Media – Årsrapport 2019

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

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ABG Sundal Collier, 20 August 2020

Results Q2 2020 o Highlights o COVID-19 o Financial highlights o Capital resources

Dividend

Business segments o Resultso Focus and guidance

Guidance for 2020

Q&As

North Media – ABGSC, 20 August 2020 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

Henrik LøvigCEO, North Media Online

This presentation has been prepared in Danish and English. The Danish text shall be the governing text for all purposes and in case of any discrepancy the Danish wording shall be applicable.

Connecting the business community and consumers

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Digital access solutions

Portal for bank loans

Job portalPortals for rental housing

Nationwide distribution of direct mail, local newspapers etc. to 2.3 million households. Direct mail distributed to ~70%

Digital advertising platform

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

care workers

Consumers generally Tenants Jobseekers Borrowers Households

North Media – ABGSC, 20 August 2020

Q2 Highlights


Improved earnings

• Strong effect of transition from 2 to 1 weekly distribution round

• Drop in volumes in FK worsened by COVID-19

• High double-digit growth in Online and Bekey

• Earnings improved in all business areas

Dividend of DKK 4 per share – ordinary dividend suspended in March

• To be paid out on 25 August 2020 as extraordinary dividend

FY 2020 guidance updated

• Revenue now DKKm 1,005-1,045 against DKKm 990-1,040

• EBIT now DKKm 215-245 against DKKm 200-230

• Fourth consecutive year of EBIT improvements

150

200

250

300

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

0

25

50

75

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Group revenue down by 5%.

EBIT before special items up by 38%

ROIC improved to 43.7%.

DKKm

DKKm

0%

20%

40%

60%

Q2 2019ytd

2020full year

Q2 2020ytd

COVID-19 update

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• Reduced volumes of weeklies and direct mail from mid-March onwards

• BoligPortal performing better than expected

• Decline in job listings during the period from March to May

• Delayed implementation of Bekey in the Homecare and in stairwells

Slight positive impact

Relatively large

negative impact

Generally neutral impact

Slight negative impact

COVID-19 impacts


Financial highlights, H1 2020

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EBIT margin

23.9%(H1 2019: 13.5%)

Return on securities

14.6%(H1 2019: 29.8%)

Return on equity

19.0%(H1 2019: 20.1%)

Other key figures and financial ratiosGross margin (%) 59.8 48.8 50.0ROIC bef. special items (%) 43.7 20.4 49.4Earnings per share (EPS-D) 7.5 6.0 11.0

Revenue growth

-0.1%Financial results (DKKm) H1 2020 H1 2019 2019Revenue 510.3 510.7 1045.6EBITDA 137.9 82.4 193.2Amortisation/depreciation 16.0 13.7 27.3EBIT before special items 121.9 68.7 165.9Special items, net 0.0 4.1 4.1Operating profit (EBIT) 121.9 72.8 170.0Return on securities 56.9 76.7 122.1Net financials -3.0 -1.0 -11.6Profit for the period 134.6 115.6 211.5


• Capital resources up by DKK 205 million to DKK 690 million

• DKK 45 million from COVID-19 extended deadlines for paying VAT and employee income tax

• Expecting to pay DKK 40 million in provisional tax for 2020 in November 2020

• Extraordinary dividends of DKK 72 million to be paid on 25 August 2020

Capital resources


Capital resources [end] 2019 to 30 June 2020, DKKm

Purpose of capital resources

• Maintain sufficient flexibility to exploit market potential and meet strategic objectives.

• Ensure independence of structural market fluctuations

• Facilitate constant, attractive dividend to shareholders

Cash flows (DKKm) H1 2020 H1 2019 2019

Cash flows from operating activities 182.0 72.5 125.9

Cash flows from investing activities -10.3 -25.0 -31.3

Cash flows from financing activities -33.3 -78.7 -83.0

Total cash flows 138.4 -31.2 11.6

44 4045

Opera-ting

profit

Sun-dries

485

2019

-2

103

Mort-gate loans

COVID-19

exten-sion

Q1-20

-295

690

Return secu.

Corpo-rate tax

2020

Purs. treasury

share

+205

Dividend to be paid on 25 August 2020

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Dividend of DKK 4 per share

• Objective of paying a constant, attractive cash dividend

• Ordinary dividend for 2019 suspended in March 2020

• Currently more clarity about COVID-19 effects

• Strong cash flows and high level of capital resources

• Paid as extraordinary dividend on 25 August 2020

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012345

2016 2017 2018 2019 2020

Rising dividendsamounts paid by financial year

DKKm 196 distributed to shareholders (excluding treasury shares)


-200

20406080

100120

2016 2017 2018 2019 2020

Dividends Buybacks

DKK/

shar

e

FK DistributionQ2 2020 results

• Revenue down by 8%. Volumes 15% lower – reinforced by COVID-19

• Transition to one weekly distribution round has big positive effect on EBIT

• Increase of EBIT higher in Q1 than Q2 due to timing differences

• Decision by competition authorities appealed for principal reasons, limited commercial impact.

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Guidance for 2020

Focus areas

• Sales of new products, e.g. magazines and direct mail

• Ongoing optimisation of production process

• Connecting physical and digital services

(DKKm) H1 2020 H1 2019 Q2 2020 Q2 2019

Revenue 446.5 457.1 221.4 240.4

EBIT bsi 117.9 73.6 53.9 43.8

Financial highlights


Revenue, DKKm

880-910(2019: DKK 935m)

EBIT before special items, DKKm

210-235(2019: DKK 172m)

Direct mail contributes to a sustainable environment

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The NejTak+option ensures

freedom of choice and marketing

relevance More than 500,000

households have the NejTak+ option, thus selecting direct mail

Weight of newspapers reduced by 25%

2-1 weekly distribution round

Sustainable production

Waste wood, filling wood and recycled

paper

Paper recycled seven to ten times

88.5% of collected paper is recycled

Retail diversityEfficient and cost-

effective marketing for small local shops

Defence against international tech

giants

Some 15,000 jobs affected

25% of young people of a given year apply for a job to deliver

direct mail

First work experience for 10,000 young

people

5,000 jobs in printing or newspaper industry;

many held by first or second generation

immigrants

Local community cohesion

Low costs on distribution of local

newspapers and direct mail strengthen local community cohesion, not least in rural areas

Eco-friendly delivery

More than 80% of distribution made on

foot or by bicycle

0

1.000

2.000

3.000

2010 2019

in millions


(DKKm) H1 2020 H1 2019 Q2 2020 Q2 2019

Revenue 49.8 42.4 26.0 21.6

EBIT bsi 11.3 2.5 7.0 1.3

(DKKm) H1 2020 H1 2019 Q2 2020 Q2 2019

BoligPortal 40.6 33.6 21.4 17.3

Ofir 9.2 8.8 4.6 4.3

Other 0.0 0.0 0.0 0.0

Total 49.8 42.4 26.0 21.6

North Media Online – Results Q2 2020 results

• Revenue up 20%

• Five-fold increase in EBIT

• Boligportal: Revenue up 24%; EBIT doubled

• Ofir: Revenue up 2%; loss reduced

11North Media – ABGSC, 20 August 2020

Revenue

(DKKm) H1 2020 H1 2019 Q2 2020 Q2 2019

BoligPortal 14.1 6.9 8.0 3.7

Ofir -1.9 -3.3 -0.6 -1.8

Other -0.9 -1.1 -0.4 -0.6

Total 11.3 2.5 7.0 1.3


EBIT before special items

BoligPortal – data-driven rentals platform

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• Data-driven rentals platform offering a strong value proposition to tenants and landlords

• Clear market leader in Denmark with 100,000+ units let in 2019

• Growth case in Sweden (BostadsPortal) to be scaled up on same platform

Key dataH1 2020 vs H1 2019

Revenue in Sweden

+58%

Revenue from landlords

+151%

Revenue in Denmark

+18%


BoligPortal – Large market potential in Denmark

0%

20%

100%

80%

60%

40% 26%

43% 49%

31%

2%

450

1%Service providers

50%

Rental servicesMarketplace

28%

220 230

70%

Market not targeted

BoligPortalCompetitors

Total8%

900

50%

42%

Total market targetet and market shares 2020*

Total

Position as market leader on the market targeted – and still large

growth potential

Large potential within services for landlords and products for service

providers

*) Internal estimate based on publicly available accounts and Danmarks Statistik

DKK mio

North Media – ABGSC 20. august 2020 13

BoligPortal has sold +20.000 digital rental contracts and move in/move

out inspection reports to +7.000 landlords

BoligPortal – Products and value proposition

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Landlords: Digitalisation• Advertising properties and rentals• Leases• Move-in/move-out inspection reports• Market research/market data

Tenants: Secure process, safe match• Tenant profile• Rentals agent• Validating landlords and rental

properties• Peace of mind when concluding a lease,

etc.

Service providers: New business• Customer leads via the BoligPortal

platform• Utilities (electricity, internet, insurance)• Deposit financing


https://youtu.be/La9sV24OiOU

https://youtu.be/La9sV24OiOU

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A strong and highly experienced team of 60+ people working to scale the business in Denmark and Sweden on a joint data-driven rentals platform

BoligPortal – Scalability and growth

TCR leverer billede (illustrere prof. organisation, fx salgsteam, netværksmøder med udlejere, Anders+boliger - eller gode outdoorplaceringer på fx Rådhuspladsen

Vise at fundament for vækst og skalering er på plads

User base in placeLarge base on tenants and landlords

Strong growth potentialData and customer relations producing future sources of income

Attractive sources of revenueRecurring and non-recurring high-margin revenue

Unique platform and brandUnique scalable platform and strong brand in Danish market


North Media Online: Focus areas and outlook

16North Media – ABGSC, 20 August 2020

Guidance for 2020Synergies and growth potential

• Know-how on building and scaling data-driven digital platforms

BoligPortal

• Scaling rentals platforms in Denmark and Sweden

• Launching new products to landlords and service providers

Ofir

• Ambition to deliver profit in 2021

• Growing market share in Denmark

Lead Supply

• Developing lending and data platform

• Growing market shares in Scandinavia

Revenue, DKKm

98-102(2019: DKK 86m)


19-22(2019: DKK 7m)

BEKEYQ2 2020 results

• Revenue up 35%

• Homecare profitable (accounting for 80% of revenue)

• Investing in stairwell market• Rapidly growing home delivery

market • Potential with property managers,

properties companies, etc.

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Focus areas

• Partner with distribution companies

• Pilot project with property manager

• Extend market coverage in Greater Copenhagen

• Add new agreements with municipal authorities


Guidance for 2020

(DKKm) H1 2020 H1 2019 Q2 2020 Q2 2019

Revenue 14.0 11.2 6.2 4.6

EBIT bsi -3.3 -5.4 -1.9 -3.6

Revenue, DKKm

25-30(2019: DKK 24m)


-8 to -6(2019: DKK -10m)


Guidance for 2020 updated


(DKKm) Actual 2019 6 February 18 March 7 May 26 June 19 August

Revenue 1,046 1,075-1,125 Suspended - 990-1,040 1,005-1,045EBIT before special items 166 160-190

In line with 2019-figure 200-230 215-245

Focus on core businesses Operational improvements Greater cost efficiency Subject to COVID-19 status

19North Media – ABGSC 20. august 2020

IR-kontakt

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

E: [email protected] M: (+45) 2565 2145

Thank you for attending

2019 årsrapport & forventninger til 2020 · cohesion. Low costs on distribution of local...

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