Alma Media Annual Report 2016
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1 ANNUAL REPORT 2016 #BOLDMOVES 2 Dear reader, Alma Media’s purpose is to accelerate the sustainable growth of individuals, companies, and society. In 2016, we boldly developed our existing operations and created new ones. Our business grew and developing through company acquisitions, continued progress on our present business operations, and by investing resources in new and innovative products and services. We have also renewed our annual reporting. Our new annual report is based on integrated report model. With this change, our intention is to demonstrate how Alma Media generates value for its various stakeholder groups. We are also making implementation of our corporate responsibilities more transparent. In addition, our financial statements have been made more multi-faceted. CONTENTS YEAR 2016 Alma Media – a European media and service company . 3 Sustainable media and service business . 35 Alma Media’s business segments . .. 4 Development and corporate culture . 36 CEO's review . 5 Alma Media’s stakeholder interaction .. 37 Key figures 2016 . 7 Key events in 2016 . .. 8 GRI REPORT Management and organisation of corporate OPERATING ENVIRONMENT AND STRATEGY responsibility at Alma Media . 40 Operating environment . 11 Materiality . 41 Strategy . 12 Corporate responsibility in Alma Media in 2016 . 46 Value creation model . .16 GRI index . 63 LET’S MARKET AAMULEHTI TAKES 18 MARKETING! 20 ACTION AGAINST Global Compact content index . 66 BULLYING Purpose . 17 #boldmoves cases . 18–24 FINANCIAL STATEMENTS Report by the Board of Directors . 69 BUSINESS SEGMENTS Financial statements . 81 Alma Markets . 26 Parent company financial statements . 134 Alma Talent . .. 27 Signatures to the report by the Board of Directors and Alma News & Life . 29 the financial statements . 147 Alma Regions . 30 Auditor’s report . 148 SUSTAINABILITY GOVERNANCE JOINING YOUNG DYNAMIC NEW TOOLS Responsible Alma Media . 32 Corporate Governance Statement . 154 22 PEOPLE IN THE 24 FOR DEVELOPING A responsible member of society . 33 Remuneration Statement . 172 PURSUIT OF THEIR DIGITAL ADVERTISING Customer value and trust . 34 DREAMS 3 Alma Media – a European media and service company Alma Media is a media company focusing Our ongoing transformation into a provider on service business and journalistic content, of digital services began in the mid-1990s. In with the mission of boosting the sustainable 2016, digital business accounted for 40 per growth of individuals, companies and society. cent of our revenue. We have been particularly In addition to journalistic content, we successful in the digitalisation of our national provide services related to lifestyle, career, media products and our expansion in Eastern competence and business development. Central Europe. Digitalisation presents many Our products are leading media and service opportunities to us – our services are available brands in their respective fields, such as to our customers in exactly the manner they Kauppalehti, Talouselämä, Affärsvärlden, want to use them, regardless of time and Iltalehti, Aamulehti, Etuovi.com and Monster.fi. place. Alma Media has employees in 10 European We are building sustainable media and countries, from the Finnish Lapland to the responsibility is an integral aspect of our Balkan Peninsula. In Finland, our business operations. By providing high-quality includes national, regional and local media, independent media content, we act as a digital consumer and business services, responsible member of society. At the core of training, events, trade literature publishing our operations is earning our customers’ trust as well as the printing and distribution every day, by providing sustainable media businesses. Finns encounter Alma Media’s and service business solutions that create nearly 100 media and services outlets some added value. We also operate responsibly 20 million times every day. Alma Media’s with respect to our employees by supporting international business in Sweden, the Baltic the development of Alma Media’s corporate countries and Eastern Central Europe consists culture and the competence of Alma’s of recruitment services, financial and trade employees. publications, an online marketplace for commercial properties and telemarketing services. 4 Alma Media’s business segments BUSINESS SEGMENT OFFERING AND MAIN BRANDS MARKET POSITION Recruitment services as well as digital automotive and Alma Markets produces leading recruitment services in several Eastern housing marketplaces and related services in Finland. Central European countries. Operates in Finland and nine European countries. Alma Markets also includes Finland’s largest marketplaces for selling and renting properties with adjoined value-added services , and second-lar- gest car sales portal in Finland with adjoined value-added services for car dealers and drivers. 20 trade and financial media, as well as books. Alma Talent’s media are read by more than a million Finnish and Swe- dish-speaking experts, decision-makers and investors. Skills development and growth services for professio- nals and businesses in different fields, from events and Alma Talent produces influential content for professionals in the fields of training to information services. business and finance, law, management, HR, sales and marketing, techno- logy and health care. Operates in Finland, Sweden and the Baltics. Iltalehti and its various digital and print news and The online service of Alma News & Life’s most significant product, Iltalehti, lifestyle publications. is one of the largest news services in Finland. Its combination of digital and print channels reaches approximately two million Finns weekly Several digital consumer services related to travel, nationwide. cooking and dating. Operates in Finland. Regional and local media publishing, both print and The combined weekly readership of Regions’ regional, local and town pa- online. In addition to regional newspapers, includes 14 pers is approximately 700,000. Taking websites into account, the combin- subscription-based local papers and five town papers. ed print and online readership amounts to nearly 950,000. Through print and online versions, the regional papers reach some 78–82 per cent of the Printing and distribution unit Alma Manu. consumers in their regions. Operates in Finland. The Alma Manu printing press in Tampere’ is one of Europe’s most modern printing facilities. The printing press prints the majority of Alma’s own papers and increasingly sells printing services to other publishers as well. Alma Manu has its own early morning delivery operations and through Jakeluyhtiö Suomi, Alma Manu also delivers addressed letters and maga- zines in its operating regions. 5 CEO's Review 2016 was a good year of growth for In 2016, Alma Media increased its revenue by 21 per cent to 353 million euros. Revenue Alma Media. Our profit performance turned to an increase due to acquisitions and the positive organic growth of Alma Markets proves that our decisions to reach and Alma News & Life. The adjusted operating beyond Finland’s borders and make profit for 2016 grew by 51 per cent to 36 million euros. bold decisions in digital business It was a successful year for the digital have been correct. business of Alma Markets and Alma News & Life. Alma Talent successfully completed the Talentum integration process during the year. The integration saw the unit become a leading publisher of business and professional media, one that reaches more than one million decision-makers, entrepreneurs and professionals in Finland and Sweden. Alma Regions accelerated the development of digital services and continued to implement efficiency improvement measures to ensure the profitability of publishing operations. Alma Media’s international business is characterised by rapid growth and strong profitability. It already accounts for 20 per cent of the Group’s revenue and 30 per cent of the adjusted operating profit. We currently operate in Finland and nine other countries, 6 with a particular focus on Eastern Central very rapid rate. We took significant steps in measures to accelerate marketing investment responsibility. Our practical work is guided Europe. Our brands are widely recognised developing and delivering new marketing and cooperated with various industry players by the corporate responsibility priorities leading brands in their respective regions and advertising solutions in 2016: among with the aim of having Finland and Finnish derived from our updated materiality analysis. and we are either market leaders or strong other things, we began the roll-out of a businesses engage in increasingly high- We are also guided by various commitments, challengers in almost all of our international comprehensive distribution system for quality and productive marketing. Our work such as the UN Global Compact initiative on markets. digital advertising in our network of news on that front will continue. universally accepted principles in the areas of and lifestyle media, and we invested in human rights, labour, environment and anti- Digital business is also a source of growth and programmatic buying technology. Alma In a time characterised by “alternative truths” corruption. profitability for Alma Media. It now accounts Media also played a key role in building the and opinions replacing facts, the significance for 40 per cent of the Group’s revenue and 60 Automated Guaranteed marketplace shared of reliable and independent domestic media Alma Media's task is to build sustainable per cent of the adjusted