TMG Annual Report 2016
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3,488,000 1,860,000 via print and digital1 users every month3 2,811,000 (incl. IJmuider Courant) 6,923,000 4 500,000 1 digital reach via print and digital 316,000 users every month3 1 24,423,000 via print and digital video views every 4 297,000 month digital reach4 4,776,000 digital reach4 1,172,000 150,800,000 via print and digital1 video views every month3 7,925,000 users every month3 999,000 91,214,000 via print and digital1 3,258,000 page views every listeners every week5 month3 618,000 digital reach4 1,100,000 1,191,000 users every month3 users every month3 2,639,000 257,000 1,350,000 via print and digital1 via print and digital1 listeners every week5 1,172,000 154,000 digital reach4 digital reach4 6,216,000 1,973,000 via print and digital1 subscribers2 2,150,000 853,000 digital reach4 subscribers in Belgium2 39,386,000 272,000 629,000 page views every listeners every week5 via print and digital1 month3 117,000 1,648,000 digital reach4 digital reach4 1,024,000 1,000,000 3 subscribers2 users every month 2,200,000 1,417,000 3,507,000 users every month3 listeners every week5 listeners every week5 16,000,000 42,000,000 editions6 editions7 Sources: 1 NOM Mediamerken 2016-l (2015-II t/m 2016-I), 13+ 5 NLO/GfK, Mon-Sun 6am-12am / 2015 annual average / 10 years and older 2 Internal reporting by TMG Digital 6 Keesing Media Group: the Netherlands and Belgium 3 Google Analytics, period: December 2016 7 Keesing Media Group: France, Belgium, Germany, Italy, Spain, 4 Online analysis NOBO, monthly reach December 2016 Austria and Switserland Table of contents Foreword 5 Governance 60 Composition of the Supervisory Board 61 Composition of the Executive Board 63 Corporate Governance * 64 About TMG 6 Report of the Supervisory Board 69 Remuneration policy 73 Company profile 7 In Control Statement 76 Important developments in 2016 * 8 Risk Management 77 Facts and figures 2016 11 The world around us 12 Strategy * 14 TMG financial statements 2016 86 Organisation 17 Our people 18 IT 23 Corporate responsibility 24 Supplementary The power of our journalism 32 information 155 TMG stakeholders 156 Notes on integrated reporting 160 Performance * 40 Quantitative targets table 162 GRI table 163 Company performance 41 Glossary and abbreviations 169 TMG Landelijke Media 47 TMG Digital 51 Holland Media Combinatie 53 Keesing Media Group 56 Investor Relations and the TMG share 58 All sections marked with an * are a part of the Management Report as referred to in article 2:391 of the Dutch Civil Code. Annual report 2015 3 TMG Annual Report 2016 4 Foreword TMG published its provisional annual figures on 8 March. Recent events concerning the group, as reported in our press releases and the stakeholders’ letter of 15 March that have been published on our website, created the exceptional situation that publication of the full, audited financial statements and annual report had to be postponed. We have worked hard to prepare the final documents for publication as quickly as possible and, following a careful process, we have finalised the annual report; the figures have not changed compared with the first publication on 8 March. After TMG had received a bid from Mediahuis and VP Exploitatie for the acquisition of all issued and outstanding TMG depositary receipts and shares, TMG, Mediahuis and VP Exploitatie reached a conditional agreement on that bid on 5 March 2017. The Supervisory Board resolved to suspend both members of the Executive Board with immediate effect on 5 March 2017. In accordance with TMG’s articles of association, the Supervisory Board is temporarily performing the executive functions. Although they were both in office until the end of the 2016 financial year, in view of their suspension, the members of the Executive Board have not signed the financial statements. On behalf of the Supervisory Board, which is temporarily charged with managing TMG, I am pleased to present TMG’s annual report for 2016, including the audited and approved financial statements. Jan Nooitgedagt Interim Chairman of the Supervisory Board and interim Chairman of the acting Executive Board This release is a translation of the original text in Dutch. In the event of a discrepancy between the two versions, the Dutch version prevails. 5 TMG Annual Report 2016 About TMG To develop high-quality propositions for consumers and advertisers, relevance and clout are needed. In 2016, TMG lined up a distinctive media ecosystem to strengthen exactly those aspects. With online video and an advanced A distinctive media eco system data layer, we increase our relevance. 6 Company profile Telegraaf Media Groep N.V. (TMG) is one of the largest Our brands connect millions of people media companies in the Netherlands. We provide consumers with high-quality, personalised and relevant TMG connects millions of people, with strong brands such as content, 24 hours a day, 7 days a week, with a focus on De Telegraaf, DFT, Telesport, Metro, Autovisie, Privé and news, sports, lifestyle and entertainment. We do this VROUW; regional dailies such as Noordhollands Dagblad and through all possible media and platforms: online, mobile, De Gooi- and Eemlander; digital brands such as GeenStijl, video, print, radio and events. Dumpert and Gaspedaal; Classic FM and – through a strategic partnership – national radio stations Sky Radio, Radio The greatest power of a media company is its ability to create Veronica, Radio 538 and Radio 10. In addition, we have and share valuable stories. Through more than 60 trusted dozens of other brands and titles that focus on the provision brands and a strong journalistic focus, TMG knows how to of local news, entertainment and e-commerce, such as reach Dutch consumers like no other. In words, images and GroupDeal. Through Keesing Media Group, we are market videos, via all possible channels − and always with the leader in Europe in puzzle magazines and digital puzzles. consumer at the heart. What are consumers looking for? This is the question that guides us. In the growing stream of information, we aim to interpret and connect, through our strong brands, our strong positions in content domains and the rich data of the millions of consumers we reach every day. This makes us an attractive partner for advertisers, marketers, content makers and distributors. Together with them, we create value throughout the chain, in a socially responsible way. In 2016, TMG’s revenue amounted to € 421.0 million and the company employed an average of 1,790 FTEs. TMG's head offices are located in Amsterdam. Strategy: we provide Dutch-speaking consumers with relevant content 24/7 OBJECTIVES Superior New media Sustainable consumer ecosystem returns interaction PILLARS Accelerated New revenue Increase Agile Focus Sustainability growth models effi ciency organisation CRITICAL SUCCESS FACTORS People & Coordinated Pace of Agile media competencies implementation partnerships ecosystem 7 TMG Annual Report 2016 Important developments in 2016 The 24/7 strategy formed the guideline for all our activities in 2016. The main highlights, categorised by the six pillars of our strategy, are described below. Focus In 2016, TMG successfully focused on further developing its brands in order to expand the reach in their market segments: • De Telegraaf and Metro have a strong brand reach in the Dutch dailies market. In 2016, De Telegraaf had a total brand reach of 6,923,000 in print and digital1. Metro achieved a total brand reach of 6,216,0001; • VROUW realised a total brand reach of 2,639,0001, with substantial growth in online reach; • Dumpert booked 150,800,000 video views per month2; • Noordhollands Dagblad achieved a total brand reach of 999,000 in print and digital1. Accelerated growth To realise growth in reach and impact, the range of content of the various brands has been expanded and renewed, including: • VRIJ, a new 80-page weekend supplement of De Telegraaf, with inspiring content on home living, travel, mobility, cooking, technology and healthy lifestyle; • Privé’s new multi-platform app offers 24/7 access to Privé’s latest showbiz and entertainment news; Privé’s new royalty special: Privé-Royal; • Autobahn.eu launched by TMG Digital; • Metro Lifestyle, a renewed monthly supplement; • children's puzzle booklets published by Keesing Media Group in collaboration with Viacom, and new editions in countries other than the Netherlands: a total of around 200 new titles in 11 countries. 1 Source: NOM Mediamerken, 2015-II - 2016-I, m/v 13+ 2 Source: Google Analytics, December 2016 8 Important developments in 2016 New revenue models With regard to the development of new revenue models, the brands extended their digital position: • the new responsive platform Vrouw.nl was launched. The majority of the users visit the site using a mobile device; • with its new website telesport.nl, Telesport launched a dynamic sports platform, which focuses on top-level sports news, background stories and statistics, 24/7; • De Financiële Telegraaf (DFT) launched a completely new website: dftkennis.nl, in collaboration with knowledge partners such as SingularityU The Netherlands and Nyenrode Business University. DFT also launched a renewed app with the latest stock exchange and business news; • the renewed De Gooi- en Eemlander website kicked off TMG’s regional brands with a more customised online news offer.; • Keesing Media Group introduced new mobile apps, including Sudoku, Tectonic and word search and crossword puzzles, which enable puzzlers to solve puzzles on their mobile phones as well as on their tablets. Improved efficiency In 2016, the organisation was streamlined further. This included: • the successfully completed outsourcing of printing activities; • physically combining the offices of TMG Landelijke Media and Holland Media Combinatie; • the centralisation and bundling of other activities in Amsterdam (e.g., the move of Relatieplanet.nl) and the reduction in the number of locations; • substantial gains of Keesing Media Group in its core markets France, the Netherlands, Belgium and Denmark.