BUILDING A DIGITAL MEDIA ECOSYSTEM JP Morgan CEO …ir.stroeer.com/stroeer/pdf/pdf_id/435267.pdf ·...
Transcript of BUILDING A DIGITAL MEDIA ECOSYSTEM JP Morgan CEO …ir.stroeer.com/stroeer/pdf/pdf_id/435267.pdf ·...
BUILDING A DIGITAL MEDIA ECOSYSTEM JP Morgan CEO Conference 29th June 2016 | Udo Müller (CEO)
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Highlights Q1 / Q2 2016
Quarterly revenue increased
to 226 Million Euro
Organic revenue growth of
11.5 %
Operational EBITDA
increased to 45 Million Euro
Successful placement of the
„debenture“
Schuldscheindarlehens
Aspects EURm Q1 2016 ▲
Revenue
reported 226.2 +39.8%
organic +11.5%
Operational EBITDA 45.3 +72.2%
Op. EBITDA Margin 19.7 % +3.8%pts
EBIT (adjusted) 25.9 > 2times
Net income (adjusted) 20.1 > 4times
31 März 2016
Net debt/Leverage Ratio 314,0 / 1.4x
FY 2015: Adjusted Earnings per Share almost tripled since 2013
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24.0 36.3
56.3
106.2
0.54 €
0.77€
1.10€
2.10€
0,00
0,50
1,00
1,50
2,00
2,50
0
20
40
60
80
100
120
2012 2013 2014 2015
Adjusted Profit or Loss Adjusted Earnings per Share
Strong underlying operational performance
leads to strong bottom line increase
Value accretive acquisitions for
shareholders
Financial expenses significantly reduced
Adjusted Earnings per Share calculated on
the Weighted Average of Shares
outstanding ~ 50m in 2015
Aspects Net Adjusted Income & Adjusted Earnings per Share (2012-15)
EURm
Strong operational performance translates
into strong earnings growth as well as free
cash flow growth
Free cash flow growth which expands
stronger than net adjusted income
Free Cash Flow:
CAGR 2013-15: ~ 80%
Net Income (adjusted):
CAGR 2013 - 15: ~ 71 %
Cash Flow is the central KPI of the
Management Board
FY 2015: Free Cash Flow more than tripled since 2013
4
After 2013 cash conversion rate of above 1.0
0.51
0.98
1.39
1.07
0
20
40
60
80
100
120
140
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
2012 2013 2014 2015
Free Cash Flow NAI Ratio
12.3
35.4
78.2
114.1
EURm
Aspects
Net debt & Leverage
FY 2015: Financial Leverage 2013 to 2015: From 2.8 to 1.1
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302.1 326.1
275.0 231.0
2.8 2.8
1.9
1.1
0
0,5
1
1,5
2
2,5
3
0
50
100
150
200
250
300
350
2012 2013 2014 2015
Net debt Leverage
EURm
Since 2013 around 228 EURm Free Cash
Flow generation
Net debt decreased by around 95 EURm
since 2013 despite
~ 73 EURm cash-acquistions
~ 24 EURm dividend distribution to
Ströer SE shareholders
End of 2015: With 231 EURm Net Debt and
leverage ratio of 1.1
Aspects
What has changed from analoge to digital Times
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Innovative intermediate business can be short-term extremely successful; on the long-run, intermediate businesses are not sustainably successful
Companies with vertically integrated value chains push out intermediate business models
Digitisation reduces entry barriers for many business models across value chains in all industries
Ströer‘s Strategic Answer
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Focussing on integrating platforms public, mobile and home screens to become a real digital multi-channel company
Focus on extending & integrating vertical value chains
No stand alone intermediate business (e.g. stand alone Adtech companies)
Ströer Multi-Channel & Integrated Monetization Ecosystem
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Ströer Public Media (OoH) Group
Location based Reach
Ströer Content Media Group
Content based Reach (“all digital”)
Platforms
Monetization
content & interactivity
incremental reach & connection to real world
Data &
Tech
Stack
Ströer GroupS
National Media Sales
Ströer SMB Group
Local Media Sales
Ströer Transaction Group
E-Commerce & Subscription
Out of Home
Digitisation of Out of Home is the basis for integrating public, mobile and home screens.
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Yesterday: 100% of Revenues with
traditional, wet glued OoH Products
Today: <10% Revenues with
traditional wet glued OoH products
On-going, Value-creating Transformation
Over 4,000 Video-Displays reaching appr. 30 Mio. People per Month
1st Step to OoH Digitisation: Shopping Malls & Stations
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Public Video Station
Public Video Mall Infoscreen
Supermotion
2nd Step in OoH Digitisation: Roadside Screens
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Content
Moving from traditional Broadcasting Portals to fully integrated & interactive Verticals.
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Source: TrendOne 14
MEDIA
MODUS
INVOLVEMENT
1.0
LEAN BACK
MEDIA
MODUS
INVOLVEMENT
2.0
MOVE FORWARD
MEDIA
MODUS
INVOLVEMENT
3.0
JUMP IN
… TEMPORARY…
MEDIA
MODUS
INVOLVEMENT
4.0
ALWAYS ON
…PERMANENT…
MEDIA
MODUS
INVOLVEMENT
5.0
PLUG IN
…IMPLANTED…
Entertainment Attention
Profiling Interaction
Creation Participation
Web of things „Always on“
Web of thoughts Extensions
Evolution of Media: The Consumer Perspective
Ströer Value Creation Model for Digital Content Assets
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Traditional
Broadcasting
Portal
Slowly growing
Ad Revenues;
single Revenue
Stream
Integrating
Interactive Services
Ad Revenue
Optimisation
through
No 1 Saleshouse
on national and
local Level
& Big Data
Impact
Boosting Reach through
Social Traffic & Public Video
Reach
, T
raff
ic &
Sti
ckin
ess
Monetization & Revenue Diversification
2
1
3
Subscription Models
4
Niche E-Commerce
5
Segment “Digital”: Overall Structure & Units
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Public Video
CO
NT
EN
T &
TR
AF
FIC
MA
NA
GE
ME
NT
TR
AN
SA
CT
ION
&
SU
BS
CR
IPT
ION
News &
Services
Tech &
Games
Entertainment Women &
Lifestyle
AD
VE
RT
SIS
ING
SA
LE
S,
PR
OD
UC
T
& D
ATA
MA
NA
GE
ME
NT
National Digital
Sales House
Local Digital
Products &
Services
Tech
Sta
ck &
DM
P
Women & Lifestyle Vertical: Full Value Chain Integration
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From Traditional Broadcasting
Portals to Interactive Digital
Communities
1
Our Success Model:
Reach & Data out of one Hand
2
Vertical integration alongside the
digital Value Chain
3
Local Markets
Integration of Platforms and Value Chains to massively expand Business with SMBs.
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360° Integrated Online Marketing Suite for local SMBs
RegioHelden Product Range
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Directory
Management
& Google My
Business
+SEO /
Display ads + Marketing
Website
AdWords
Invest
€ €€€
€ 29/month/POS € 89/month/POS from € 500/month/POS from € 800/month/POS
Topseller: RegioHelden
Marketing System
Broadening Local Digital Product Portfolio: RegioHelden and Omnea
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Visibility
Active management of shop presence in
directories, local portals, apps, maps
and navigation systems
28 781 627 474 354 105 65
2012 2013 2014 2015 2016 2017 2018
Development of headcount and order book
Out-of-Home only + Digital Mark
etin
g S
erv
ices fo
r SM
Bs
Performance
Creation of marketing websites, Google
adwords, display performance and
SEO services
Branding Campaigns
Active management of locally targeted
display, mobile and video Campaigns via the
number 1 saleshouse inventory
1
2
3 4 6
9
13
40.8
19
59.8
31
90.5
47
133.1
9
16
26
47
Sales Orders
Digital Sales
OOH Sales
In EURm, end of year
Q1 Results 2016, Guidance Statement 2016
Q1 2016 ▲ FY Guidance Specified FY Guidance
Revenue 226 EURm 39.8 % 1.1 - 1.2 EURbn 1.1 - 1.2 EURbn
Operational EBITDA 45.3 EURm 72.2% 270 – 280 EURm More than 280EURm
Organic Revenue
Growth 11.5% (2015: 8.4%)
Mid to high single digit
organic growth
Mid to high single digit
organic growth
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Questions welcome!
Disclaimer
This presentation contains “forward looking statements” regarding Ströer SE & Co. KGaA (“Ströer”) or the
Ströer Group, including opinions, estimates and projections regarding Ströer’s or the Ströer Group’s
financial position, business strategy, plans and objectives of management and future operations. Such
forward looking statements involve known and unknown risks, uncertainties and other important factors
that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be
materially different from future results, performance or achievements expressed or implied by such
forward looking statements. These forward looking statements speak only as of the date of this press
release and are based on numerous assumptions which may or may not prove to be correct. No
representation or warranty, express or implied, is made by Ströer with respect to the fairness,
completeness, correctness, reasonableness or accuracy of any information and opinions contained
herein. The information in this press release is subject to change without notice, it may be incomplete or
condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer
undertakes no obligation to publicly update or revise any forward looking statements or other information
stated herein, whether as a result of new information, future events or otherwise