The ways we search and receive information, the ways we find what we need and what we desire. The ways that goods are bought and sold, services created, hearts and minds reached, will take shapes that no one can imagine today. Yet, there is nothing new about times of great shifts in behavior. What is valued in those times is a spirit to adapt to change, the ability and agility to thrive in it. It is the spirit of our origin in everything we do. It has helped us shine a light to the world around us, to seize momentum and opportunity, and to do it time and again. We believe that sustainable growth for business and society happens when every individual can make their best choices, when and where they matter the most. What is needed is for someone to be there, always, at arm's reach, inspiring human curiosity and choice. It will be us. When we can understand, anticipate, and reach the heart and mind of the individual. Recognizing this value is how we help our customers win and see our value as a company our own way to grow. It is how we'll find new ways to shine a light to the world around us, to inspire human curiosity through meaningful content and services, enabling the best personal choices and interactions in life. When we focus on working together and supporting one another, when we don't fear the new, but embrace it, when we make our local heart stronger and take it further, we will become the international service and content revolution company with a local heart, inspiring human curiosity and choice by creating the most meaningful and preferred services that combine technology and content for the sustainable growth of individuals, businesses, and society. Now, how will you inspire human curiosity and choice as yourself, as a team, in collaboration with everyone around us, with support from us all? Together. Good evening, ladies and gentlemen, welcome to Alma Media's Capital Markets Day 2021. My name is Elina Kukkonen, and I'm responsible of the Communications and Brand here at Alma. We've come a long way since the last CMD 2018. We accelerated our digital transformation, and we have become a company of a strong digital media, marketplaces, and services. Along the way, we had also crystallized our vision. We will inspire human curiosity and choice, meaning that we believe that sustainable growth in society will happen if each one of us has a choice, opportunity to choose, and make the best decisions where and when they matter the most. For today, we have prepared a quite comprehensive set of Alma business segments. All the senior vice presidents of Alma's business segments are presenting today the strategies and the steps going forward, and they are quite eager to do that. I hope you will follow us quite closely. The President and CEO of Alma Media, Mr. Kai Telanne, will kick off the afternoon, and then we directly move to the presentations of the business segments. After that, our CFO, Mr. Juha Nuutinen, will go present the financial position of Alma Media today. We have reserved plenty of time for questions and answers. There will be question and answer sessions in between the presentations, and also at the end. During the afternoon, we will have two short breaks, and we aim to finish at 4:00 P.M. This CMD will be recorded, and the recording and also all the materials presented here today will be available for you at the almamedia.fi at the Capital Markets Day page. With this introduction, I hand it over to Mr. Telanne, the President and CEO of Alma Media. Once again, welcome to Alma Media's Capital Markets Day 2021. Please, Kai. Thank you, Elina. Welcome everybody, ladies and gentlemen. It is great to have finally a live event here at Alma House. We waited for this for quite a long period. As Elina told you. Can we have the right presentation, please? As Elina told you, I will concentrate in my presentation to the deliverables that we have delivered since the last CMD that we had actually 2018. Three years ago. I will concentrate on where we come from, where we are at the moment, what is the current portfolio and position, and how do we go forward from this point? What is the strategy? How do we build long-term value? I have about half an hour to do this, and then after me, the segment heads will go on deeper into the details into the different businesses. As you probably know, we have done major divestments of the print-based business, which has been one of the key elements of the transformational strategy of Alma Media. Hand in hand with this, we have done several major investments in digital marketplaces and services. By doing this, we have strengthened our market position especially in digital advertising, marketplaces in Finland and abroad, and digital services. With the transformation, our capital intensity has decreased remarkably, and we have been able to improve the profitability remarkably as well. At the moment, we have quite a balanced portfolio of businesses, of media, especially digital media, digital services, and marketplaces. We have reorganized our segments differently. You will hear about that later. Finally, we have overcome well from the pandemic. Businesses are running smoothly at the moment. We haven't had any severe problems during these difficult times. In addition to a decent organic growth, M&A has been driving our digital transformation and growth, as noted. In this slide, we try to show how the investments have been done during these three, four years after the last CMD. On the upper side of this slide the investments. On the downside there, the divestments of our print-based businesses. The last ones being regional media and print business, early morning delivery business, slowly decreasing businesses with low profitability. On the upper side of this slide, as you know, faster-growing digital businesses, especially on digital services and marketplaces areas. We bought Alma Mediapartners minorities 2020 and Alma Career minorities out 2021. Then, of course, Nettix investment this year which has been a really big effort for us. The integration has gone nicely. Kari Kivelä will tell you more about this. The M&A has been really important part of this transformational strategy in addition to the organic growth. All this has led to a major change in our business mix. You might remember that 2005 when we started this heavy transformation almost all of the business were print businesses. 35 print titles of regional and local media as well as national business-to-business media and consumer media, Iltalehti. Only EUR 70 million of digital revenues at that time. Now the run rate this year, EUR 180 million, tenfold compared to the beginning. EUR 50 million remaining print businesses around Talent, business-to-business media, and Iltalehti paper issues. This has been the journey. A little bit more than 70% of our revenues coming from digital sources and increasing. A heavy shit shift, not shit, but shift during these times. At least my view is that this has been quite a good journey. This has led to a leading market position in those areas where we have aimed at. Those are recruiting business in CEE area like Finland, Czech Republic, Slovakia, Croatia, Baltic countries, and further on to the Balkan area. We are number one player there. Houses and premises, number one player in Finland. Vehicles and machinery nowadays, number one player. Financial and professional media, we've been number one player forever. Commercial premises in Finland and Sweden, number one. Digital advertising network in Finland, Alma Media is nowadays number one player. Digital consumer news media, we are also number one player. I would say that we have a fantastic position and portfolio to grow further profitably. This journey has led to improved profitability also. From last CMD 2018, our profitability has improved. We had, of course, the difficult last year with a heavy decrease in advertising and marketplaces as well. Now the market is picking up heavily and nicely, and the growth has continued. Last year, or 2018, our adjusted operating profit was EUR 48 million and the run rate at the moment is more than EUR 50 million. EBIT over 20% at the moment. This has been the strategy to discontinue the low profitability businesses with low growth profile and to invest and increase the growing digital profitable businesses. Due to these reasons, this has been a good journey for shareholders since 2016, the beginning of 2016. This is the indexed change of Alma Media share compared to the OMX Helsinki All-Share and Peer Group Index. We are comparing our businesses and performance against the peers in Europe at the moment. You can see from until the August this year, our share price is more than four times the one that we had in the beginning of 2016. We aim this to continue, of course, with the good growth and profitability. As I told you, we have now a fantastic portfolio. This is where we have tried to aim at. Marketplaces over 40% of the business, 100% digital with nice profitability profile. Media, less than 40%, around EUR 100 million, of which about half is digital business. That part of the business, media business, is growing. Nicely growing services, digital services, mainly EUR 53 million, fifth of the portfolio. EBITDA almost 30% at the moment. All right. That was the past, the beginning of the journey, the way, and now we are here. How do we go then forward? A few words about the current and coming strategy. We have a quite a clear and simple transformational strategy. First of all, we're going to continue the transformation of the core business, which means in print business, we transfer it from print to services, from print to digital. We are activating the cooperation at the moment in all segments within the group and the business units in order to increase the efficiency and the profitability. Of course, we are still having a close look at the non-profitable or low profitable businesses, and if needed, we are going to divest or close those. This is going to happen around the core business that we used to have. Secondly, we are continuing to grow in digital, which means to diversify from media to marketplaces and to digital services. You will see several examples during this day in different segments. How do we do this? We're going to diversify our businesses in those value chains where we are in at the moment into new business areas. Of course, in order to do this, we have to have the best people that we actually have at the moment to develop this kind of world-class digital capabilities, brands, and technology. Thirdly, we are going to continue with the internationalization of the company that we started 2010 by going from Finland through Baltic countries to Central Eastern European countries. We are aiming to expand to new geographies to speed up the growth, and then we are going to leverage the businesses in current geographies in different valued chains. We have now a perfect portfolio and stance in Finland, especially. In this slide I try to draw a picture of this combination. The idea is to use the leading media businesses to leverage specific business areas that we have in Finland, like combining state-of-the-art content with the leading marketplaces or other digital services like data services or comparison services or that kind of services. We are strong in recruiting. We are very strong in business information. Juha-Petri Loimovuori will tell you more about this. We have a lot of new initiatives and investments there. We are very strong in houses and premises. Riikka Kivimäki will tell you more about this. Of course, with vehicles like cars and motors and other vehicles as well with the Nettix acquisition that we did. We are increasing our vertical focus on integration. A lot of cooperation is going to happen inside the cooperation and the company to create higher value from improved average revenue per advertised item. Briefly, the idea is to combine the best content with the best services and use the customer base as good as possible to increase the value of the company and the value for the customers as well. We actually reach everyone in Finland every day to serve them with the content and with the different services. This is the key for the strategy. How do we then progress with these initiatives? Here we have three ways to show that. First of all, to transform the core, it's about the transformation from print to digital. At the moment, from content, we have one-third of the content is coming from digital services or digital forms of content which means that we have still work to do. Transformation is going to continue. This is one of the major strategic focus, especially in Alma Talent, which is well in speed. Of course, digital advertising, where we are number one in Finland. Almost 80% of the advertising of Alma Media coming from digital sources. Almost 70% of our services are digital at the moment, and that will increase. In order to speed up the transformation and do it in a profitable way, we need to cooperate to have scale for the businesses. You will hear more about this intensified cooperation later today. Of course, the second part to increase and to speed up the growth in digital. We are moving from current value chains to new ones, and then, of course, trying to increase the market position of current businesses. We are moving for an example, from job boards to staffing and add-on career services. Here are few examples that we have gone in, like Treamer, like Seduo, Techloop, and so on. Vesa-Pekka Kirsi will tell you more about this, and you can ask him. Digital revenue growth has been quite good. Commission-based consumer services, 25% growth at the moment. Alma Talent services, almost 17%. The speed is quite good at the moment. There have been, of course, this kind of underlying demand during the COVID-19 situation, and now it's started to fly. Hopefully, that will continue. We have very good plan to keep the rate. Then, of course, to grow in digital, we need to improve the current capabilities, especially the digital capabilities of our personnel and get in new capabilities when the world is changing. Of course, we have new initiatives to internationalize the company. We have bought some minorities in the career business center, and we are investigating all the time different kind of possibilities to leverage our B2B businesses in Nordic countries, especially. Of course, marketplaces, businesses in Northern Europe and maybe in Central Eastern Europe as well. The world is changing fast around us. I've taken here six important issues that we have on the table always while we are formulating our strategy, and these are those. I am not going to go deeply into these. Maybe some example of these two, just to remind you. Like the regulation. It's still unknown how the current regulation around privacy issues, for example, you know that the power of the consumers is growing. EU regulation is changing. We don't know actually how and when, but we have to be prepared, and we are. We are concentrating on user value and customer experience on technology and data. The competition is, of course, intensifying all the time. We are in a global play at the moment. We are competing with the global giants. We have to have a close look at their moves as well. Economy and society. Now we know that the Finnish economy, according to the latest estimates, is going to grow around 3.5% this year, or maybe even more next year, and the CEE countries where we are strong, even more. That's a good sign. On the other hand, in the long term, the European growth is estimated to be quite modest. We have to grow more than the market in order to reach our targets. In order to do that, we need to have a very good organic growth in current businesses and do some M&As to speed up and so on. These four issues that we have here, media, mobility, housing, and recruitment, you will hear more about during coming presentations. What is the underlying business that we have in our strategies, in our segments? I won't go through this. Technology, data, consumer behavior change, competition, regulation, all these are changes. You need to be very agile in order to mitigate the negative changes and in order to speed up your growth if there are or new opportunities arising. We have revised our long-term financial targets. We did this because the portfolio and the position of the company has changed. We are more a digital company. Almost all of the revenues now coming from digital. It's about revenue growth more than a digital growth from now on. We have set a long-term target of more than 5% annual revenue growth. We have changed also the profitability target. The bottom line is 20%, which means that we are aiming at more than 5% growth with a high profitability businesses. In the long term, if we can reach the 5% growth with 20% margin, it means a remarkable increase in value. Then, because now we have quite a significant debt load after these significant investments, we took the net debt EBITDA ratio also in place, which should be under 2.5%. At the moment, we have 3.1%. We don't see this any kind of problem. Juha Nuutinen, our CFO, will clarify this a bit. With this good cash flow, we have a good plan to deleverage the company. On the downside of this slide, you can see how the performance in these terms has been since the last CMD 2018. We are at the moment close to the profitability target. We have been quite far from the revenue growth, so we are increasing the ambition in there, and of course, the balance sheet is totally different than we used to have. Last but not least, sustainability is very close to our heart. We take seriously our role in the society. We are one of the first media companies in the world who set up science-based sustainability targets. We are not actually a heavy carbon category company. Instead, we are a low carbon company. Only 10% of our CO2 emissions are from our own operations. We have set targets. We actually achieved our targets in advance. Now we are at the position where we are redefining the targets for these purposes. The work is going on. Secondly, we take care of the personnel. We have a very good situation. We have a good reputation among the employees. We have a lot of different kind of initiatives for inclusive and diverse work life. That's of course a question for a Finnish company which has internationalized. At the moment, focus is heavily on the competence development around the digital businesses, wellbeing of the personnel, flexible, diverse work life, and so on. Thirdly, of course, for a listed company, growth and profitability of the business in long term in a sustainable way is the key element. Trust, transparency, and accountability of the operations is becoming more and more important. We have intensified targets for profitable and sustainable growth of the business in every segment. Every Alma Median is incentivized for these targets, for these purposes. Sustainable growth of individuals, businesses, and societies is the key for us. The work is progressing nicely. That's it. That was my part of the presentation. We will leave room for the questions after CFO Juha Nuutinen's presentation. I will come back to the stage if needed, if that's okay. Thank you very much. Thank you, Kai. Like he said, we will have the questions and answer session combined with our CFO later on. Now we move to the segment presentations. First, I will invite Mr. Vesa-Pekka Kirsi from Alma Career, and he will tell us about the best-in-class portfolio we are holding at the moment and what kind of plans we have for expanding and also deepening our local presence. Welcome, Mr. Kirsi. Welcome to Alma Career, the recruiting industry arm of Alma Media. In the next 20 minutes or so, I will take you through the market position of Alma Career, explain to you the four domains of growth and where we are at the moment in the strategy execution of those growth areas, introduce some key figures to help you understand the scale of the operation, and end up with the competitive advantages in the business. Alma Career is an international organization of 12 countries. We span from Finland in the north to North Macedonia in the south at the Adriatic Sea, and all those countries in blue on the map. Overall, in this region, there's about 32 million working people and inhabitants, and about 20% of those switch jobs every year. The switching job population is 6.4 million, and you can consider that kind of the maximum amount of opportunities in the market in a given year. At the moment, we run marketplaces for recruiters and job seekers to meet, marketplaces we call job boards. We have them in all the 12 countries, and in nine of them, we are the clear market leader. In the remaining three, we are, in our services, among the top three. On an average year, our services enjoy a very high demand of visitors. 80 million unique visitors visit our sites annually. 25% of those, about 20 million, leave us a job alert, meaning that they post themselves available for any information coming from recruiters and openness for jobs. 180,000 advertisers place 1.3 million job ads into all of our services combined. It's a very heavy and active operation in our 12 countries at the moment. We are quite happy and proud of this, but that's not all. We are looking for more, and we are looking to expand. In order for me to explain why and how we are planning to expand, let me just show you some things about the recruitment market. Recruitment market is not a unified audience. It has people in all facets of working life, from white collars to blue collars and any other collars there is in this market. In order to speak to these different audiences, where multiple ways are required. At the moment, we run recruitment advertising sites, so job boards, and that's a very good vehicle to speak to those who are actively seeking for a job. Companies who look for people post ads to these marketing sites where people actively looking for new opportunities come to look through what's available. These active players of the market meet and make agreements through job boards. There are other alternatives to actually have your needs met as recruiters. Staffing is an interesting industry for those opportunities where you need temporary staff or project staff to fulfill a temp position, or as a job seeker, you need a vehicle to get into a new opportunity. Staffing industry is a very vital industry for many companies in all over the Alma Career region. There are those segments in the job market that are hard to hire and are hard to reach because they are passive. They are not actively looking. These people do not come to job sites to look for a new position. Direct search or headhunting has always been a great vehicle to achieve these people and to offer them new opportunities. When we look ways to grow, it's the whole spectrum of the industry that we are looking into, aiming to expand our portfolio of services to meet the full demands of the recruiters, of the job seekers, and this industry. This slide with the four colored boxes is an illustration of our growth strategy going forward and those areas we are looking to tap next in our operation. The blue, the job boards, the recruitment marketing, is our home base and our core. That's where we are today, strong. Next slide will a little bit explain more how we are thinking of growing in that space. We view these neighboring operations of digital staffing or staffing services an interesting opportunity. It's about a EUR 1.3 billion operation in Alma Career region alone, giving us a sizable business to see what we can do and help companies there. The headhunting or the direct search operation, as well as reverse recruiting, is another EUR 0.5 billion opportunity in Alma Career region, again, operating in an interesting space. Both staffing as well as direct search industries are at the moment utilizing digital assets more than ever before, heavily digitalizing them and enjoying the data and other assets that are bringing disruption and new opportunities into these areas. Companies hire, but at the same time, they can also upskill their own talent. Sometimes there are hard-to-hire segments and no talents are available in the market. Teaching your own personnel, or as a job seeker, teaching your own skills is an important area. Corporate learning has been among Alma Career services already for four years. This is a very vital growing sector in Alma Career region and outside, posting great growth opportunities for us and many others. At the moment, the estimated size of this industry is as big as EUR 3 billion within Alma Career region. In our future growth segments and growth areas, we look at all of these four boxes for opportunities to grow as Alma Career and bringing services to the industry and for our customers and job seekers. What have we done in action to actually populate these boxes? In job boards, in the recruitment marketing, we have about 12 countries with the leading services in all of them. It's a constant innovation of services, innovation of features to stay relevant to our existing customers, and to expand the service to all facets of active work life. We look to expand the services inside the region by bringing new features and business opportunities and products, as well as expanding outside the current region through organic and inorganic opportunities. We view the job board and job advertising industry and business as a great growth opportunity for Alma Career also in the future. In addition to that, we've taken our first step into the digital staffing industry by two minority investments in 2020, when we invested in Bolt.Works and Treamer, two Finland-based staffing platforms. Bolt.Works is a mobile/internet solution for heavy sectors, building sector, industrial sector, warehousing sector, to bring them sector-specific solutions for their staffing needs, and it is growing heavily in the Finnish market. Treamer is a industry-specific solution for HORECA segment, retail segment, maintenance, to bring and staff in their very urgent, quick needs. If you have a person falling sick, Treamer boasts a 15-minute delivery time to fulfill any urgent need position in these segments. The minority investment gives us a very good position to view the staffing industry and all those advances now taking place through technology and data and how they are disrupting the models of this industry. We're also taking our first step into the direct search or reverse recruiting through a Czech operational service called the Techloop. I will further today introduce you to Techloop, but just to say it's a solution for IT segment to specifically serve those looking for IT skills, coding skills, or if you are one looking job in that industry, in the reverse recruiting area. Already for past four years, we have also have our hand in the educational part, so the corporate learning. Seduo is our own homegrown startup from the Czech Republic, where we've created a Seduo platform, which is offering content and offering learning management for companies and individuals, now already in three markets of Czech Republic, Slovakia, and Finland, and we look in that opportunity to grow in the near months and years to further region. Alma Career is a marketplace, and we see our role in between the demand and the supply, so between the job seekers and recruiters. That's what we do. We are here to matchmake these two the most efficient way together. The current services we run in generic and niche job boards are the meeting places for these demands and supplies to meet. We already provide the market with industry tools, such as application tracking system. Teamio in this slide is such a service, where we help recruiters to run the whole recruitment process from meeting through interviews all the way to signing. CV database, Arnold, Seduo, all of these are tools to help the job seekers or recruiters do their work better in that digital matchmaking where we help them to go. The investments into the services likes of Bolt and Treamer actually introduce another depth level into this relationship between us and recruiters and job seekers. The industry solutions that these products provide is ever deeper step into what's happening in the industries and how technology can help recruiter ends or job seeker ends find each other and actually work together. It gives us as an Alma Career a very good look into what are the needs of both sides of this marketplace structure and how can we help them better. Few numbers. Alma Career has been a steady growth unit ever since it was born. This was disrupted last year in the pandemic, and the effects that gave. Actually, our revenues took a heavy hit from the early on of the year, and we were able to do some of that profitability saving through cost measures and other measures that help us to maintain decent profit as well as profitability level. Already in last year, but ever-increasingly this year, the business has grown and bounced back to where it was before. I'm quite happy and proud to say that the numbers indicated here for this year will be definitely met and also exceeded. The sales ever since our second quarter has been increasingly good month by month through the summer. In the graph to the right, it's quite interesting to see the mix between our job board business or the marketplace business and services. Already for a few years now, the services have taken an increasing part of the revenue and product mix. Today, adding up to 10% of our total revenue amount. We expect this to continue in the upcoming years. It's quite interesting to see also that the service revenue stays stably growing even through the pandemia months, helping us to balance those macroeconomic changes that we see in our market area and in our business. I wanted to give you this view, which is a little bit of a detailed view into our marketplace revenue and sales creation. The blue line in the picture is basically our sales or invoicing of a month. The purple line is revenue following the sales. In Alma Career business, sales and revenue has a little bit of a delayed relation. What you sell today, you will see in the revenue around six months' time. Whatever happens in sales today is an indication of what revenues and where the revenue is going to go in the six months. As you see, roughly in February 2020, the sales, the blue line, totally plummeted when society started to close down and businesses got very cautious about recruiting. In April 2020, the sales reached its low point of all time when we took in the full effect of the pandemic. Already in May 2020, even though society stayed closed, companies started to invest back into their own function and the recruiting started. We haven't seen such amounts anymore. Ever since May last year, every single month we have been growing in our invoicing. So much so that we already pierced through the revenue line in the end of 2020, and ever since we've kept above the revenue line. Just to indicate that we are now in bounce back mode and growth for the year and also for the year to come. In the face of global competition, which was also displayed in Kai's presentation, how do we think that we can compete? We believe in local presence and in the best-in-class services. We are local currently with our services. We are the trusted local brands in local language, in the local market, understanding what's happening in these communities and in these customers, and knowing how can we adapt our services to their needs. We do not believe in one size fits all, but we believe in being local and being relevant. We also think that we are relevant through the services that we deliver. When we know the needs, we are also able to adapt our services to the evolving needs of job seekers and the recruiters. This is not a sleeping market. It develops all the time. Needs of companies change and so do those of the job seekers. Through our professionals in multiple countries in the Alma Group, we are able to deliver best-in-class services and features to both sides of this marketplace. We are also able to introduce market or segment specific implementations such as the Techloop in the next page and bring solutions even to the deepening solutions to the needs of the market. The group structure helps us to be more efficient than we would be otherwise. Something that is innovated in one part of the group can be easily then implemented across the group, bringing us improved time to market in local markets, as well as benefits of scale in the use of our resources. We find ourselves also quite interestingly situated between the very hungry West, resource hungry West, and at the moment, a little bit more resource-rich East. There's an immigration wave that is moving from East to West, us being in the middle, actually being able to utilize the situation to the business benefit. There's also a location-free trend which is now catching the market. People trying to Skills trying to find work as well as employees trying to find skills from different regions, from a larger area than ever before. Us being geographically span widely allows us to take an opportunity from this situation as well. We believe in being local, being ultra relevant, and being efficient as a team, as our combination for the future. A small case. Techl oop being mentioned a couple of times, a great example of niche needs in recruitment business. If you are a high coder today, a very good coder today, you are bombarded almost daily with job opportunities. That becomes annoying and you can't do your work. Many of coders have already left the, so to speak, mainstream job boards and mainstream job advertising sites because it's not working for them. Tech Loop allows these professionals to build an anonymous profile, put all your skills in the marketplace, but not your name, and let your skills sell you to the companies. Companies come to the site, look at the skill sets, find the ones that they want, and make an offer. The professional himself can choose if he's interested or not in the offer. If he exposes himself to the company, dialogue can start, and they can most likely then exchange jobs and information. Techloop allows these professionals to search and explore and find opportunities across Europe, matching their skills with projects that are happening overseas and in the neighboring areas. Today Techloop has 16,000 profiles already, carefully curated professionals in our region. We already enjoy a good growth of the business for this year, more than doubling the conversations we had last year, and we are quite proud of boasting about 60% of reply rate, which is quite much above the industry average. To conclude, what are the competitive advantages of Alma Career today? Well, first of all, we sit on top of a vast and growing job market in this Northern and CEE region in Europe. It's hot in many ways. It's situated interestingly between West and East. The economies are approaching full employment. Therefore, the market is looking for services and solutions. We are already strongly present in this market with our great services, which gives us a basis for further growth in staffing, in direct search, and in education. We believe. We are local. This market proximity ensures our customer and job seeker relevancy. We keep on investing in our services, in our personnel to have the best skills to create services that are and maintain relevance to our customers. The group structure gives us also the operational efficiency, the scale benefits, and the time to market advantages that we need in order to be and stay relevant in the market. That's my introduction for you into the Alma Career business, and I suppose I'm now ready for questions. Yes, please. I want to remind you that you can pose your questions on the stream. There is a contact form, so please post your questions there. First, we take questions from here, from Alma House premises. Please, if there are any questions for Vesa-Pekka Kirsi about Alma Career. Go ahead. Yes. Sami Sarkamies, Nordea Markets. I have a couple of questions for you. Firstly, on the geographic footprint, are you constantly looking to increase the amount of countries you're operating in? You could consider adding new countries as well? The easy answer is yes, and a bit longer answer is we're already doing that. The job boards themselves are pretty stable in the region they've been built, but cases like Techloop is already expanding our reach to Hungary, to Russia, to Netherlands, and Sweden, where we haven't been before. That's one of those concepts that easily crosses borders and gains more market area. In addition to that, we are also looking for opportunities to grow in the job board and job advertising businesses through possibilities of inorganic growth. Okay. Secondly, if we think about competitive threats, you went through the market structure. Revenues are mostly coming from job boards at the moment. Do you see that the market could develop into a direction where the money is flowing to other ways of recruiting than job boards? There's a lot of innovation in the recruiting business overall, and all kinds of new ideas, also all kinds of new business models are rising and have risen already for years. Many of them are, in their evolution of business models, also diverting into job board business models. We know for a fact that job board business model is one of the prevailing and will maintain a prevailing business model for quite some time, maybe for years and years. Of course, there will be other business models. We're tapping into these as well. The Techloop, again, is a SaaS business model, very different from job board model. We will see these upcoming with introduction of different services. Maybe finally on margins. This is clearly a very high-margin business for Alma Media. Looking ahead, do you think you will still be able to improve margins? There's clearly high operating leverage in the job board business. Is it so that when you expand into these new areas, those may actually dilute margins going forward? This will be an important thing for us to be able to communicate in the future. The segments of job advertising, of staffing, of direct search, of education, all of these have their own margin brackets, and they are not the same. As we go forward, we need to be very specifically saying what are the profitability brackets in all of them and each of them. The job boards maintain well its profitability level at the moment. We are working heavily to make sure that in that business, we protect the current levels. We will see lower levels of profitability when we move into staffing. That is for sure. Even in the direct search, which is more consultancy based than others, that is the same. Therefore, separating these profitability levels and understanding that in the future is very important. Okay. Thank you. It's Kimmo Stenvall of OP Markets. Question on the M&A, you mentioned the inorganic growth in this segment. What kind of headroom do you have on this M&A front? I'll leave the headroom question to Juha Nuutinen. I suppose he's going to tackle that anyway, so let's not do that twice. If you have patience until Juha's presentation, let's take that then. Okay, thank you. The second question is the main markets you have on this, I think the Czech Republic and so on, what is the competitive situation there at the moment? The competitive situation in Czech market, Slovak market, and all of our Central European markets from us is very favorable. Our services in Czech and Slovak markets are Well, we shouldn't perhaps say they are monopolistic, but we are in almost a monopolistic situation where we dominate the market at the moment with our services through LMC as well as through Profesia that are those market operations that we have there. As we go forward in this year and you see from the figures, we've actually been able to grow in these markets even against our previous performance. It's very interesting and highly good markets for us. Okay, thank you. Yeah, hi. Pia Rosqvist from Carnegie. You showed a chart with your market position in your various markets. Finland is a weakness. I'm now thinking about overall your position and your ability to drive pricing in the markets where you are dominant, and particularly in the part which you now define as the core business. My question is really, are you able to drive pricing per advertisement and increase the profitability, or have you kind of reached the top in that part? Well, we drive and we carefully manage pricing every single year. Price increases or price increase structure is part of our business operation as we speak. We also carefully monitor what is happening in the competitive space, what's happening with pricing of LinkedIn, of other global platforms or of local players, and how much headroom is there to use pricing as a vehicle to drive revenues. We do that all the time, and at the moment at least, there has been a healthy opportunity to do that. It's also a question of market. At the moment, we are almost in a full employment situation in Central East Europe, meaning that companies are fighting for the resource and they're willing to invest in not just job advertising, but brand building and all kinds of advertising opportunities to actually boost what they have to say, which is pushing our capabilities to either play with packaging or pricing the same way. On your brand strategy, you have a multi-brand strategy and a very local approach. Is this defendable still giving the investment in marketing to defend your position? Should you kind of move towards a single or a few brand strategy? This is not in our core at all. We believe in the local brands, we believe maintaining those local brands because they are the brands that people locally love, use, and know. There is no plan at the moment to replace any of our local brands with Alma White or something like that. Okay. Thank you. Thank you. Okay, it seems there's no other questions at the moment online. Thank you, Vesa-Pekka Kirsi. Thank you. At this point, we have a short break, we'll continue at 2:15 P.M. See you then. Thank you. Welcome back. Welcome back to follow Alma Media's Capital Markets Day 2021. Now on the agenda, we move on to Alma Consumer, one of our business segments. I would invite our Senior Vice President, Kari Kivelä of Alma Consumer to present how uniquely this segment is positioned and has the market leading industry verticals and digital news to build on. At this point, I know I want to already remind you about the opportunity to ask questions also online. Please use the chat function on the screen. Now welcome, Kari Kivelä. Thank you. What are we covering today? First short description of new Alma Consumer with key features of the segment. More concrete growth strategy of Alma Consumer. We go more deeply to our strong verticals, housing and mobility and their growth strategy. There is some time to answer question how we see the outlook of digital advertising market and digital media market. Some outlook also for our comparison services. Very interesting unit in our segment. Finally, summary with our fundamental competitive advantage. Alma Media Consumer consists of digital media, digital housing vertical, digital mobility vertical, and comparison service segment. I will not dive deep in these numbers, but shortly, as you see our market position in our marketplaces as well in digital media and comparison services is extremely good. As we know in our business markets position really matters. We know that in marketplaces there is a clear tendency that supply and demand will concentrate on market leaders. It's also good to remind that market leaders have better possibilities to collect and utilize data. Some niche marketplaces, like marketplace of boats or motorbikes and even some comparison services. In a small market like Finland, there is just room for only one service, and naturally this service might have quite good entry barriers around it. Here we see key financials of new Alma Consumer. It's worth of notice that this rolling 12-month pictures, the left picture consists just one quarter of Nettix vertical, Q2 2021. Another word of note might be that you see that we have maintained quite solid profitability, even COVID-19 period, pandemic period 2020, and also in the beginning of this year, 2021. Good market position, solid profitability, even clear cost synergies. It's good to remind that when we told this acquisition of Nettix verticals, we gave an estimation of cost synergies EUR 1.5 million. After five months of this acquisition, we can definitely keep that estimation. When we talk about growth possibilities, it's good to remind that we definitely want to concentrate on services and focus on services which have high importance as household investments. Definitely housing and mobility are excellent examples of that. We want to strengthen our revenue streams from industrial solutions inside those verticals. We will go deeper to the strategy of our verticals later on. Also we believe that within our verticals, we should have also possibilities to look later on also geographical expansion. All doubt, the digital advertising, which has been a key growth driver in digital media, is a very complex and demanding market. We are still operating in promising growth areas there. Marketing services, new services which utilize data for better targeting that are clear examples of that. We believe that in future digital media demands two strong revenue streams, advertising and digital subscriptions. This year we have moved to this market also with Iltalehti, and the first month has been quite promising. We will open up this bit more later on. Definitely one key component in our strategies materialize the synergy between strong consumer media and consumer services. This EUR 1.5 million is example of that, the cost synergy. We can utilize excellent sales organization. The marketing power of Iltalehti will help a lot of our services. Nowadays it's a main marketing channel besides search engine marketing for most of our digital services. As told before, we will heavily focus on big markets housing and mobility, and utilize the digitalization of ecosystem in these markets. This means that we'll have expanded our offering, for example, to B2B solutions, professional solutions, enterprise solutions, intersale solutions, for example, to agent layer in housing. We will go a little bit deeper that. Also there are favorable trends in housing segments in Finland. Digitalization, but also urbanization and structural changes which feeds up rental and service business here. A similar story or development in car market business. As you see later on, similar vertical strategy, expanding offering towards industrial solutions and develop related services which correlate this vertical strategy. Although there is some kind of decrease with new registrations cars during the pandemic, we believe that there will different story later on when electric cars take major role in a market. Here is a very concrete example of our vertical growth strategy in housing. You see there are those strong market leaders, marketplaces, Etuovi and Vuokraovi. These are some kind of bridge to industrial solutions like Kivi and DIAS. DIAS is a digital trade platform. It's part of Alma Talent. Mr. J-P Loimovuori will open up it later. We work very close together because it helps, and it's a very useful tool for our agent customers. Kivi's enterprise resource planning system which have very close correlation with those marketplaces. Then we have those related services which serve customers and service providers after the housing trade. Urakkamaailma is a comparison service for renovation services, Muuttomaailma comparison service for removals, Etua help our customers to find feasible housing loans. Same kind of growth strategy, vertical growth strategy in mobility platform. Strong marketplaces, bridge to industrial solutions. We have there two strong ERP systems, but also B2B marketplace, Tukkuautot, and then several solutions for C2C trade nowadays. As well as in houses promising related services. Autojerry comparison for maintenance. Etua also here helping finance your maintenance or used car. Both verticals task is to collect common data for that whole vertical. It will help advertising, it will help development of new services and that will help our strong market position. Okay, then a short outlook. Another unit in our segment, digital media and digital market, digital advertising. As we heard earlier, Kai Telanne told that Alma Media has divested printing business before the TV business, regional newspapers and so on. One might ask, is it any sense to own just one consumer media? Iltalehti in our case. The domestic media market is very demanding market in every country. Facebook, Google, Spotify, and other platforms, they have incredible pricing power as well as data storage. We believe that digital news media with high reach, clear focus on domestic content and news, and two revenue streams, digital advertising and digital subscription will be only model which can survive in this very demanding media market. Even have some growth possibilities for coming years. Our history the right column, which is the growth of digital advertising, is still quite promising. Then this year and spring we have been higher level than before pandemic. It's good to remind that this whole digital advertising ecosystem offers still a lot of growth opportunities. In this market, you can build reach. In our case with digital news media or those strong marketplaces. You can build more and more efficient targeting solutions with data you have. It fulfills the demands of contextual advertising and has room for new marketing services. We made this acquisition of Netello which is high profile search engine optimization firm. Now we have developed solutions for advertiser clients where we combine media and search engine solutions together so that these solutions support for each other. Very interesting path there. As we told, these comparison services are totally about EUR 7 million business at the moment. Overall, we can say that these services are relatively unestablished practice in Finland, but getting more and more familiar within customers and service providers. What is extremely interesting is that well-established, well-designed comparison service outperforms the results of search engine marketing with customers. Why? Because the purchase intention is much stronger inside the comparison service funnel than it is in search engine funnel. Let's take a more closer look for Autojerry, which is example of that. Those pictures are quite impressing. 450,000 registered users at the moment, 1,800 companies registered maintenance companies as customers. Promising turnover growth during the past years. Built the trust, built the customer satisfaction, then you see more revenues, more margin. This is a clear example of that. In this new vertical strategy and new Alma Consumer, Autojerry is just one of, but very promising service that will utilize the synergy with Iltalehti and maybe especially with Nettiauto, the market leader of used cars. It's time to summarize and underline the competitive advantage of Alma Consumer. As told, we have impressive market position in marketplaces and comparison services. This enables creation and onboarding, and develop new services and features. We have very good data storage at the moment, and we can collect it more and utilize more in near future. Strong synergy between consumer media and consumer service, as told before. Then there is a question, what is the competition power against the large platforms? Same story than in Alma Career before, but besides that, we have also many integrations for local authorities, information that they are producing. That is something that those big platforms want to avoid. Also local sales and customer service belongs to that advantage here. Then new evolving markets with media. Paid content and new marketing services are examples of that. Iltalehti has now operated six months with digital subscription and that 20,000 subscribers which has paid for the content is very promising start. Thank you. Okay, now we're ready for questions. At the moment there is no questions online, I encourage you, as following online also to post some questions and we'll get them here. First, we take questions here from the Alma premises. Please. Okay. Sami Sarkamies, Nordea Markets. I have two questions. Firstly, on the online classifieds business of Alma Consumer, mainly housing and cars, I think there's been substantial pent-up demand after COVID-19 and we have seen high growth rates, especially during the second quarter. Are you seeing that this part of the market is starting to cool down towards the end of this year? We haven't seen those signs yet, but especially in housing, we see that COVID impact. Also, there is a structural change. More and more people are keen on rental, and the urbanization or moving inside the country feeds up the market. I think that next year we'll see what was the real COVID impact. Okay. Secondly, on the media part of the business, Iltalehti, you have a sort of formidable competitor in Finland. How have you been doing against them more recently? Are you happy with your performance, thinking of Iltalehti? We are happy. Yes. We are happy that we were brave enough to move to digital subscription business also. We strongly believe the strong media will need two revenue streams, subscription and advertising. Okay, thanks. Pia, any questions? Yeah. Hi. Pia Rosqvist from Carnegie. The competitive situation is intensifying in Finland. Looking at the marketplace's business again, it seems like one of your competitors, at least, they highlight that the fragmented and underdeveloped market here in Finland is posing a challenge, at least for them. How would you describe the average revenue per user in the Finnish market? Is there something we need to understand here in terms of the potential, in terms of the structure, something that would limit you from reaching a higher level or your competitor from reaching higher levels in average revenues per user? I might guess which competitor you're thinking about. Yeah. We agree that ARPU is slightly under the Nordic level. We are not worried about that so much. For example, in mobility vertical, we have managed to increase the ARPU with new services. If you think about advertising and digital advertising and look at the ARPU of that, you must remind that there are big platforms who have enormous pricing power and they set the pricing level. You can make higher ARPU with new services, and also moving to transactional services and so on. Any other questions? Also one difference is that if you have strong horizontal services where you sell a lot of items, it's a little bit different story when you concentrate on some verticals. Okay. Thank you, Kari. There is no other questions from online at this point. We move on. Okay. Thank you. Thank you. Now we move on to Alma Talent, one more business segment of Alma Media. Mr. Juha-Petri Loimovuori, the Senior Vice President of Alma Talent, will tell us about the profitable growth path of the leading business media and the digital business information services. Please, Juha. Thank you, Elina. Good afternoon. I'm J-P Loimovuori. I tell you the updated story of Alma Talent, which starts here. Leading business media profitable growth from digital information services. The structure of this presentation is mainly the same than what my colleagues, Vesa- Pekka, and Kari had, but I will focus quite a lot on the services side because that might be a bit you don't know that yet so well than our media business. Some background first to the people who might be online who are not Finnish. Our operations are mainly in Finland, but one of our best businesses happens to be in Sweden. That means that the Objektvision, which is the commercial premises marketplace business, which also operates in Finland actually under the name of Toimitilat Kauppalehti. We have minor operation in the Baltic States of Estonia and Latvia with our direct marketing, telemarketing business. As I said, we are mainly in Finland, and we are quite strong in Finland. When you compare Alma Talent to other parts of our Alma businesses, it's good to know that this is mostly a business-to-business operation. We are working with the companies, with the professionals of the companies and decision-makers and so on. We have around 11,000 active corporate customers. That's quite a lot actually if you compare the real base of companies in Finland. We have a lot of companies. That's mainly on the service side of the business. That's good to note. The main customer segments are finance, ICT, housing, and property. Our business is slightly overlapping, for example, with the Consumer Segment in the housing, but we are taking care of the business-to-business part of that. That's the logic here. Eight media brands could reach, still could reach on the decision-makers and professionals in Finland, 1,350,000 people weekly. To the figures. We had the last CMD 2018, and since then, maybe I could say so, we have had our tight focus on the growing digital and recurring revenue. You can see that the profitability is on the quite good level right now. This is the rolling 12 months, the last chart on the left side graph. We are reaching the 50% digital rate, actually passed it already, and the profitability is good. When you look at this figure, it's good to note that there's also divestment of Alma Talent AB, which was the part of the Talentum merger since 2016, and we divested it now 2019 and 2020, and that takes a lot of the revenue side. At the same time, we have been able to improve the profitability. That was what Kai told us about transforming the core. We have been really active with that. We also invested in DIAS Platform 2020, and I will tell you some more about that later on. We have three strong businesses. We have media, we have the services, and we have direct marketing. As I said, I will concentrate on the services today. Maybe here we have the same KPIs, digital revenue, and share of recurring revenue. Maybe it's a bit surprise. It was a surprise to me. These are now the first half of this year's KPIs. Our share of digital in the service is already 88%, and share of recurring is 72%. That creates us a strong second leg, I would say. That is something to look at. We have spent some management time during last two years, reinvent this business. When we are talking about the service business, the right question is: How can we help you as a customer? When you look at the mobile illustration here, the answer is that we can help our customer to accelerate growth, to fulfill the compliance needs, and also to streamline their processes to be more efficient. These are the three fields where we work the most right now. When you ask me that, "Don't you publish books?" I said, "Yes, we still publish book," but that is not the need of our customers. Their customers is to be compliant, and that's why they need a law book. This is maybe the thinking behind what we are doing. Actually, I take you a little bit deeper with this picture. How do we operate now and even more in the future? Alma Talent is like a platform or a hub between the sources of data or information and the customers who need this information. We have actually quite good sources. Of course, we use the normal external sources, the public registration and legislation and open data and so on. We are also having our own data assets to create these products. We, of course, we have the editorial contents from Alma Talent and Alma other sources, which is quite kind of unique actually in the Finnish market. We have our own collection call team where we gather the information from the companies, for example, their decision-makers. That data, what we get by calling them, it's much more accurate than crawling on the Internet. We have our own experts to do the data collection. We have, of course, I was talking about the books or education. We have a wide network of the best experts in the Finnish market. We know all the professors or other experts in the each field of information we supply. This is quite unique way of collecting compared to our competitors. No one of them has all these sources. Comes the main part where we refine, combine, enrich, and everything inside Alma Talent. We have the data people, we have the content people who do the text and so on. We can do first-class products of this raw data and information. That is something which really makes the data into valuable information. Data is just binaries. This is something that what our customers really need, that we do the productization, then we deliver it to online services. For example, suomenlaki.com could be an example or Analyzer. Or integrate these solutions where we supply the data straight into the customer's systems, CRM or something else. As said, we are working with the corporates, but also public sector, actually, state and academia. They are quite big client groups here, so that is good to note as well. Of course, single persons as professionals buy our services. For example, Seduo, which Vesa-Pekka already introduced you. To the figures also here, we have quite tight focus that we do now and more and more in the future. We target the corporate sales. That allows us to grow the revenues steadily to the scalable model. That is really something that we have been focusing already, and we are doing it all the time more and more from one type of businesses to corporate sales type of businesses. When we are talking about this market, I would say that there is expert reports, for example, KPMG says that might be 3%-5% per annum, the global market growth of this kind of business information products and services. Also, our peers give similar estimates. I would say that is not really our problem because we are a challenger here in the market, so we just need to make better products, find the niches, do the development, and there will be a good growth opportunity to us because all the customers, they are now digitalizing their processes. They are making more and more decisions on data. Of course, the regulation, mostly EU regulation, gives us new opportunities. I would say an example, we bought a minority on the company called Suomen Tunnistetieto, or brand name Dok, which is on the know your customer process. That is really interesting service, and there seems to be a lot of demand on that. Coming to our competitive advantage in this field, we have our own databases, and maybe it's good to mention that the legal database what Alma Talent is having, there is two actors in the Finnish market who has this. That is some kind of uniqueness, and I guess that we can build a lot of new businesses on that database. We have unique combination, as I already mentioned, and I cannot forget Alma's marketing power when we are entering into new businesses in this field. We are quite reliable as a partner, and that also is proven by the fact that we are having finance sector as the main customer segment. They trust on Alma and Alma Talent. We have a long relations in the media side as well. What is important also is that we have always accurate rights to the information what we provide. This is really important, and that's part of our corporate responsibility as well, that we have rights to do what we are doing. All the players in the field do not have. To the strategic goals in this is that we are the market leader actually in the housing and property information. We are going to keep and seize that domain in the future as well. One part of that is DIAS, which we are trying to grow to its full extent, of course, in the coming years. We are going to develop the digital legal information market and grow the market share there. I hope that in the next CMD, I will have some new things to tell you about that domain. Legal information market is really interesting. The company data services, I already mentioned DOKS, there might be some new innovations as well. Actually, we are having in the pipeline already some new products in there. Maybe it's best that I open this services part also with some cases. Maybe it opens up a little bit what I'm talking about because this is not the easiest business to communicate. This is a product or service called Analyzer plus DataCare. What we are basically doing, this is a B2B sales data as a service to our corporate customers. In this, we are really combining a lot of the sources I mentioned already. We have the official company data from public source. We have adjusted financial statements. We have had the Balance Consulting unit for 20 years already, but we are using that information in this product. Then we have the decision maker information, which is updated by calling to the companies, which is unique in the Finnish market as well. We have Kauppalehti and other news service to give the signals what's happening in the target companies. What the customers are really doing is that they are updating their customer bases and their plans of how to sell to the customers and what kind of customer would be now hot and which is maybe a bit colder or something like that. That's the analyzer part. We have the DataCare part, which is giving the same information straight to their CRM systems, which are integrated with our information sources. This is something which of course offers us a quite good business model when the business model is based on the monthly license, and then we charge off the amount of the information that the customers are using. We started this is now the new thinking. We started in the beginning of 2020 with this, and we have already doubled the annual recurring revenue ARR amount. This is going very well, and we have only seen the start now, and it's good to understand that it's the kind of business is quite tempting business model because when we reach the break-even, after that, the cost base is mainly, of course, fixed. We don't pay too much for the contents because most of it is our own, and so on. It's going to be very profitable quite soon. Another, this is very different, very important to us, very interesting, pioneering in the field of housing, digital housing, DIAS. This is actually a startup. It was founded 2018 by Tomorrow Tech and then major Finnish banks, four of them. Alma went in in the beginning of 2020, and then we bought 80%, as Kai mentioned, in the end of 2020. Now we own 80% of the company. The main function of this company is that it transforms the way people sell and buy apartments or houses. It transforms the traditional meet at the bank office way to the digital work or meeting. It's not only signing the papers, it's also taking care of the money transfers and also the collateral management between banks. This actually is a network and platform. A platform which actually unites the network which is on the picture as well of all Finnish banks, 99% of them are with us, and also the real estate agents. It makes the process much smoother. The business model here is that we, DIAS, receive a flat per trade commission, in addition that, of course, the users have also a small license fee. The housing market itself in Finland, it's around 100,000 transactions per year. As you know, and somebody already asked it, that the housing market has been quite hot this year after COVID. I don't see the cooling down yet, but maybe it's not so high growth anymore. Our market share of that market where we are in, we are now only in the apartment market, which is share type of not real estate. Our market share is growing month by month. I'm really interested or this is a good business, and I'm looking forward next year, we can still grow several years because now the market where we are in is a bit limited. We are going to have new products which grows the market, actually, in the future. It's also good to remember that this network of banks and real estate agents will provide us a good chance in the future to give them some additional services like different types of data and so on. This is just a thought, but this is not anymore a startup. This is real business this year, and it's going to grow the next couple of years or hopefully 10 years. Back to media, and I go quite fast because I guess that most of the viewers, you know Kauppalehti, Arvopaperi, and Talouselämä. If you are interested in stocks, you know these brands pretty well. Maybe to the possible foreign viewers, this is news media. It covers topics from business to stocks, to lifestyle, even to medicine. It has 250 employees, out of which 150 journalists. Maybe it's good to mention that this is absolutely the biggest journalistic organization in Finland in the field of business and professional journalism. I already mentioned about the reach, what we still have. Last time when we had CMD, it was in the end of 2018. I told you about our plans to digitalize all of our products and also put some kind of content earning method, paywall, or something else on the products. At that time, our subscription base was 13,000, mainly Kauppalehti digital subscriptions. It's so fine. Of course, there has been quite a long time, three years, but I am so happy to show you this. We have maybe tripled or even more our subscription base in the digital single subscription since then. This is funny because you can see the COVID-19 effect in the Finnish market as well. This effect was with the U.S. papers and Financial Times and so on. It was really hard because it started immediately in the March, April last year. Since then, we have been growing. Now actually there is the summertime where the graph end is. I'm still very positive on the growth opportunities in this field. It's good to mention that it's not only Kauppalehti. Actually, all of our media brands are generating some kind of content revenue now in the digital as well. That makes me confident that this is the right way we can continue on this and maybe even media, even the printed media transformed to digital can be very tempting business in the future. Here are the figures. Digital rate is now 47 this year, rolling figure. As Kai say in our event this Wednesday, someday it will be all digital. That will take some time. I would say that after five years, we are quite near all digital business-to-business media at Alma Talent. The profitability, what we are having now, we lost several million EUR of advertising last year with the COVID-19, and that has come more or less back now. The profitability is in the very good level when you compare to other media companies wherever. That is nice to tell you. Our investments, I had the question of our product development, and I take it seriously from the audience, I mean. We need to development our products all the time more and more. That's for sure, and that's the technical, not only content. Elina, the competitive advantage of Alma Talent. Just a short wrap-up. We are a leading media in the Finnish market. Really strong market position in the B2B media. Actually, we have been able to compete with the giants quite good. We are digital subscription forerunner as I showed you. Our personnel is very skillful. We have the best-in-class editorial team in business and tech media in Finland. I'm really proud of the work what you are doing, and that's not only, of course, journalists, also all other personnel are very good. Top brands and great audiences and great trust from our audience still. The information services side, we are an agile challenger. We are trying a bit harder than our peers. We have our own databases and a kind of unique combination of contents, and there I mean, for example, that we have the legal and we have the company data, and there's no such competitor in the Finnish market actually. We have the accurate rights to information provided, maybe when the time is right, we are going to do some bolt-on acquisitions here as well. I mentioned DIAS, that that was a good one. We are also working with this Bolt.Works. We are putting the cooperation now together, it's interesting. What we are going to do, we focus on digital, we focus on scalable and subscription-based and recurring revenue type of businesses. That's what we are doing. Thank you so much. Okay, now we're ready for Q&A. Unfortunately, there's been some technical problem on our chat function, but now it should work perfectly, so please post your questions if you had any also concerning the previous presentations. We can take all the questions at the end. Now, questions for Alma Talent. Here from Alma. Yes. Sami Sarkamies, Nordea Markets. I have three questions. Firstly, on the direct marketing business, do you see that starting to peak? I guess it has benefited from COVID-19 period to some extent. Actually, if the question is was it benefit- Do you see it peaking? Will it continue to grow also in the future? Yeah, the funny thing is that it has been growing quite steadily, and now we had a peak because of the COVID, but I don't see it going down now. Of course, the growth is not so steep anymore. Yeah. That was something. It was interesting to understand how each and one business model works, but it was like that's a revenue share type of business. When we earned more revenue to our customers because their customers were at home, so that's interesting. Yeah. Secondly, on information services, you did open up that this is an area where you will be expanding going forward. Will the new service development happen more through internal development that you will yourself build those databases, or are you looking to partner with external providers of data? The product development is done by ourselves actually. Yeah. We rely quite heavily on Alma knowhow on the tech. We have built the data, what's that called? Database structures for the media, actually. Now we have found out that we can use the same innovations in this field as well, and that is giving us a good support from the Alma Group. The innovations must be inside the company, or then we need to do some acquisitions, of course, like DIAS, that kind of innovation we, by ourselves, would never have invented, I would say. Finally on DIAS, there is a competing service in Finland, but it seems that you've been able to utilize early mover advantage, and they've been suffering from the fact that they don't have interfaces with all the banks. Do you see that changing going forward, meaning that there could be more competition in this area where you're sort of currently a bit on your own? That is a very good question. Right now, at the moment, there is no such intelligent service competing with us. There is competing services, of course, but they are more like communication ways. We are doing the whole transaction, and we are developing our products really heavily now, actually. We feel that it's still on the stage of product development. I hope that we can be fast enough to penetrate the market in the coming two years, I would say, and have a strong market position. It is evident that there will be competition, of course. Okay, thanks. Yeah, hi. Pia Rosqvist from Carnegie. Can you scroll back to page 59 where you showed a revenue split? I'd like to dig a bit deeper into that. Still backwards, 59. Okay. Go back. Just say when to stop. Yep. Yeah, this one. Yeah. Yeah. If we look on the pie chart to the right, the split in data process products, content products, and marketplaces, I'm just wondering if you could give kind of the two largest revenue contributors, or brands, or services in that respective area would make easier to kind of grasp the content of your revenues? I would say that this is external information. No internal information, sorry. I don't want to open up the products right now at this moment. Marketplaces is evident. That's the Objektvision and then Toimitilat Kauppalehti. Yeah. That's already public, but I don't want to open more to other ones. We are having, like DIAS is of course in here. That's one of them. Then we have Seduo and other educational, and so on. You don't want to guide me where they are? I would say that if it says that we have processed products. that might be near to DIAS. Okay. Thank you. Then on page, I think it's 66, you had a similar revenue split. Yep. Yep. Here. Again, to the right, the pie chart to the right, looking at the 44%, I think that's maybe print. Yeah, that's print. Yeah. Is this any indication on the split here between Kauppalehti and the other magazines and the content books you sell? Yeah, I would say that maybe it helps you somehow anyway. I don't know if I mentioned that, Kauppalehti's digital rate is now 61%, so it's much more than the average Alma Talent digital rate. I must admit that I don't recall exactly how to split the print pie in here, but I think that the magazine part, because we still have their products that are mainly print, so that's major of that part. It would be quite easy actually to calculate, and I can give you the information sometimes later. We have this is something that I can open more easily is that we have the B2C digital, that is the single subscriptions, what I showed you actually, where we have 45,000 single subscriptions now. The B2B digital is the corporate solutions where we sell straight to the companies, to all their employees, a solution of our information where we actually package our brands. There is not only Kauppalehti or Talouselämä, but both. We have the unions, which is the group subscriptions of Talouselämä and Tekniikka & Talous. We still have them, and then that's mainly print, of course. Actually, I forgot to mention, but the company solutions also in the media side is very interesting and promising. We have benchmarked very carefully with our Nordic peers. We are having this kind of once-a-year meeting with them because we are not competing with each other, and there seems to be a lot of possibilities also to do the corporate sales in the media side with the digital productization. Thank you. On the Analyzer and DataCare, and maybe also on DIAS. If I understand you correctly, you have no direct competitor or there might be a competitor in DIAS to some extent, you are creating your own market here. Can you in any way quantify the market opportunity you are going after for the Analyzer and DataCare product? For example, in DIAS, what kind of revenues could we think about? Actually, Analyzer and DataCare is the field where there's a lot of competition actually. Many kind of competition, we are kind of unique where we are still small actually. For example, probably you know a company called Vainu, which has been in the Finnish market for a long time, and they have been internationalizing and so on, and also Enento is on this market now. The market itself is growing, and there will always be this kind of pockets where we can find our own growth despite the competition. We need to be fast and then better, I would say. DIAS then it, of course, that is related, the basic market is related to the housing market of Finland, which I mentioned it that it's 100,000 transactions per year. If you multiply that with our fee, which I cannot tell you, but if you buy a house, you need to pay something for the real estate agent, so you can estimate something. It will be a good market anyway because we have only started yet, so there is still a lot to earn. When we have the integrations and the network between all the banks, that might be even bigger possibility to earn something. Okay. There. Thank you. Yes, it's Kimmo Stenvall from OP Markets. Back to DIAS. You mentioned that there is still a lot to do to develop the service. I think that the basic infrastructure is now in place, what are the main tasks that you will do, and are these kind of easy wins that just take time, or how should we look at the future of this service? Right now, we are operating only with the, what is called apartment type of, you know, asunto-osakeyhtiö. If you remember the name, what's that? That is now possible and maybe the simplest cases also. When the buyer has a bank loan to finance it. We are still on the limited market. The next natural step is the real estate, which means with the houses and summer houses and so on. We are developing that right now. It's not a big secret, of course, that we are going on to that and hopefully launch that during this year still. Okay, thank you. Okay. Thank you for the questions, and thank you, J-P. Now before the break, we have a short break coming up. Before the break, I would like to lift up one question that was sort of coming late because of our fault, our technical problems, and I would invite Mr. Kari Kivelä, Senior Vice President from Alma Consumer to answer this question. This comes from Petri Gostowski from Inderes. Please. The question goes that you mentioned geographical expansion. Is this an area where you are looking at M&A, and what characteristics does a market need to have in order to be attractive for you? Do you see new areas for comparison services emerging where you are not currently a service provider? Okay. The last question first. Yes, we see room for new comparison services. For example, this sharing economy is quite interesting. A concrete case is that in Finland we have near half a million summer cottages or vacation homes and only small minority of owners of these vacation homes are nowadays renting their premises. We believe that developing a good platform will encourage this will to give your vacation home for rent and definitely there is also a need. At the moment, we have a listing service for homeowners, but it's not that kind of rental or comparison platform. That's a concrete area which seems to be quite lucrative, at least. This geographical expansion. At this moment, we will not give you very concrete answers, but at least we can say that underdeveloped market with good growth, naturally lucrative, and maybe some challengers, promising challengers, if you think about M&A opportunities with keen on our vertical strategy and solution in building strong verticals. There might be some sense at this moment. Okay. Thank you, Kari. Welcome back to the Alma Media's Capital Markets Day 2020. We are closing to the end, and we have the last part of this afternoon to go. Next, we will have our CFO, Mr. Juha Nuutinen, presenting us how all that you have heard today implies to our financial position. Please, Juha, the stage is yours. After Juha's presentation, we have the Q&A session for Juha, but also our CEO, Mr. Kai Telanne, will be on stage to answer the questions concerning the company. Thank you. Yes. Thank you, Elina. Good afternoon. I'll focus on financial position of Alma Media today. That's quite natural because there has been a lot of changes in our position during the last year because of quite substantial acquisitions. First, earlier presentations included revenue and operating profit information in each business segment. This is the summary at Alma group level. We have had this year pretty good revenue growth, approximately 13% in the first half year. It's coming of all our business segments. Thanks to COVID recovery, I would say, it has been much faster than what we have expected in the beginning of the year. Like I mentioned earlier, we have a quite good business portfolio at the moment. It's pretty same size comparing the marketplaces and the media business. We have the services, 20% of revenue. It comes from the Alma Talent P2P services and as well as services which are pretty close related to marketplaces in Alma Career and Alma Consumer. Our operating profit has been increased this year also pretty good. We are from the operating margin point of view at a record level. If you look at the left graph here, we are also above the 2019 figures if we are taking only the continued operations into account. That's also because of COVID-19 recovery and especially in recruitment and digital advertising. On the right-hand side, you can see the cost per functions. Why we are showing this graph here is that we try to show you what kind of cost items we have and operating costs and there are two big elements. The other one is advertising sales and other sales-related costs, which is around 1/4. The other cost item is technology and development costs. That's also pretty close to 25% of all costs. What it means is that we are pushing quite a lot development and technology costs straightly as a cost and not as a CapEx. This is good to notice when you analyze our company. Almost 50% of our costs goes to either advertising or sales cost or technology. Yep. Like said, we have done quite a lot acquisitions lately, and of course, it has changed our leverage. At the moment if you are looking at the June second quarter interim report, our leverage or net debt to EBITDA KPI was around three. We have EUR 220 million net debt, and gearing is around 160%. Equity ratio is close to 30%. Our balance sheet is stressed, but because of our strong cash flow and strong good growth in all business segments, this is not a problem, and we will have a stronger balance sheet after a couple of quarters. I had also this presentation, which tells you our acquisitions since last CMD. I don't go into that in more detail, but one interesting thing is that we have pretty good M&A track record. This has been one of our key strategy for a long time now, and if you look at 10 years history, we have done a little over 25 acquisitions during that time, approximately EUR 200 million. This EUR 200 million do not include Nettix yet. It comes later on into our calculations, but without Nettix, it's around EUR 200 million. If we calculate the internal revenue or internal rate of return for these acquisitions, they have bring us approximately 17% annual revenue. This is a big achievement to us and really good performance. Of course, we have had a couple of mistakes also. Everybody does mistakes, and we have had also some poorer M&A actions as well. What is important that the bigger ones and most of the cases have been very successful. Clearly, this is also one of our key strategy also in the future. The asset side is not very often in our presentations, but this time we choose this because of these acquisitions. If you look at our long-term assets side from the balance sheet, you can see that the amount is over EUR 400 million at the moment, and it most comes from the goodwill and intangible assets. It might be a big number, but if you compare it to, for example, our enterprise value or the business portfolio's performance, it's not bad. Just calculated that compared to enterprise value, enterprise value is slightly three times long-term asset value. That means that if the business performance continues with this like it, there is no major impairment loss risk in our balance sheet. That's, I think, good issue and important issue as noticed. Our cash flow, we mentioned that we have strong cash flow. This graph here includes also divested businesses, so that's why there are 2018 and 2019 bigger figures. This EUR 57 million cash flow is a good result for this current business, and we have a high conversion rate and because of quite modest or low CapEx actually. What is interesting, if we compare the histories, is that our cash flow, if you look at it in a quarter phase, is much more stabilized now than previously. The three latest quarters actually are pretty same size from cash flow point of view. It's around EUR 15 million, EUR 16 million. That has been a big change, and that comes from the digital business that more we have digital business and more we have this classified online platforms business that it makes more stabilized cash flow during the year than compared to the media business itself. Then I'll summarize my presentation and end with this updated long-term financial targets. What we announced today, and Kai mentioned already about this, a few points from those revenue growth. We changed the digital growth ratio to the revenue growth for whole Alma Media Group. Like I said, it's natural because we have almost 80% of digital ratio already. It's better to express our targets with the whole revenue, and 5% is our new target. This year we will be above that clearly. It's good to notice that this target is good to understand that it's starting next year because this year we will be clearly over 5%. Adjusted operating margin is 20%, and we are currently at the phase of 21%. There has been questions that why this is too modest and why this kind of operating margin level. We think that this is a combination of revenue growth and operating margin that if we are exceeding 5% revenue growth, it's important that we keep the profitable level, and it's good to understand it's a combination. We are really happy if this growth can be a profitable growth. This 20% is some kind of a bottom line that we should keep the level at least at that level. We don't regret if we have 21% or 22% or 25% operating margin. That's not a bad issue, of course. That explains a little bit our attitude towards these targets. The net debt and EBITDA ratio. We set the target. This is the new target to us because of course we have a lot of debt at the moment, and it's good to express what is our target in this sense. We are currently at the stage of 3, and this 2.5 is what we are trying to have. Of course, it's a combination of business profits. What is the business profitable in the future? It's depending on the dividends and also our M&A acquisitions. If we keep our dividends as they are and don't have any major M&A activities, we will be under this ratio already next year. We are pretty soon meet this target if no major M&A acquisitions are done. That's pretty much background with these financial targets. Then we keep our dividend policy as it is, but we don't anymore include it in the financial targets. We have it separately from now on, our dividend policy. It will be the same. We have not changed that. Our target is to pay dividend more than 50% of our earnings per share. That's not forgotten, but we are handling that in a different way in the future. That was a financial position summary, and thank you. Now we have time for questions and answers. Yes. Now we have time for questions and answers. I would hand it over to our Alma Media. If there's questions for financials or financials, please, Pia, go ahead. Yeah. Hi. Pia from Carnegie. With regards to the timeframe of your long-term financial targets, you say that we should kind of start looking at these from 2022 and onwards. What in your mind is a long-term target? Do we talk about five years, three to five years, or five to seven? Well, I would say that three to five years is okay. If they start to be too easy, we are happy to adjust them even earlier. No problem. Okay. Your long-term growth target is now above 5% annually. Can you give me some kind of indication on what it would mean in terms of sales split Finland versus your international business or print versus digital or growth in marketplaces and services versus the rest? Not really. We haven't done that split yet. We are in the middle of the strategy process at the moment and the planning process. We might come back later to the split of the targets as well. This is the overall target of over 5% for the company. We don't disclose long-term targets for separate businesses. Okay. The EBIT margin target, taking into account that you are now clearly above 20%, and you said this should be looked upon as a lower threshold. Should we now understand that the growth in services particularly will come at a lower margin in, for example, the marketplaces business, and that is one of the signals you want to send that there is downward pressure in the profitability? Yeah. If you go outside the current business into new businesses like staffing business, like Vesa-Pekka said, and other kind of new business segments, they usually are in the beginning and on the lower profitability level, and you have to put costs, CapEx to improve them. That is an answer for that. Exactly, yeah. You have to have that in mind. There is one comment that there is no hidden facts there that we are expecting lower margins, but that's the bottom line. 20% margin is the target. We are not saying that we are expecting lower operating margins in the future. That's not the point. Even if, yeah, new services, they will have lower operating margin levels, touch wood, but we are not expecting that in the future. We are not saying that we will have lower operating margin in the future. We think that it's quite difficult to find companies with over 5% growth and 20% margin. You can get quite a good return on investment if you have that, you can achieve that. That's our goal. Yes. Sami Sarkamies, Nordea Markets. A couple of questions on the targets as well. Starting from the top line target, you did previously have above 12% growth target for the digital business. If we think that digital business nowadays close to 80% of sales, the new target translates to perhaps 6%-8% growth for digital business. Do you think that's sort of a realistic growth rate? I think in many of your peers. For example, the Nordic countries, we are looking at growth rates between, let's say 10%-15% for digital businesses like online classifieds. You're not expecting any more double-digit growth rates in digital businesses? There are differences between markets, of course, and businesses. We have businesses that are growing more than 10%, and then we have these print businesses and the current traditional businesses like the media in Finland, which are not growing. The print business is still declining. The print business is burdening the growth rate of Alma Media still. We have 30% of print business still around, and that's how they go to the different direction. After having a fully digital business, you will definitely have a different kind of growth profile than we have nowadays. Yeah. Okay. Continuing, if you look at the above 20% EBIT margin target, that's looking fairly conservative as you're already there. If you look at cons estimates, it's about 24% for 2023. You're expected to increase margins from current levels quite substantially. Is this margin dilution that you're anticipating, is that more coming from the internal development that we just discussed that you need to invest more into growing these services, or are you anticipating that you might acquire businesses with low margin? We are not anticipating decreasing margins, as you have said. We are not expecting that. It's nice to hear that you trust us and you have expecting more than we have put here on the table. I'm fine with that. We are happy to deliver more than we have here. That's a combination, as you have said, it's a combination of growth and profitability. With this kind of profitability and this kind of growth, we are more than happy to have in long-term, steady development. Which gives you quite a nice return compared to any company or our competitors. With specific businesses, different kind of digital businesses, we have more growth. Other businesses, if you're going to staffing business, for example, the profitability profile is totally different. You have to handle the combination cleverly in order to keep the 20% balance. That's a guideline for us for new investments and CapEx usage to do it in a profitable way. In our case, the growth is not the, how should I say, the priority in that sense. It's easy to gain growth, but profitable growth is totally different. We have had the history and have a target to grow profitably and take care of the profitability in the first place. Okay. Maybe just to be absolutely clear. You're not planning any material increase in spending in order to ensure that you continue to grow in post-COVID-19 world, that sort of current spending levels. Yeah. those will likely prevail also going forward? No. No, we're not. We have to have in mind that the balance sheet is totally different now, so we have to be careful with that. We have to digest the investment that we just did, which means that the coming couple of two, three years, we have to deliver the profitability, to decrease the leverage, and then go again with the M&A, the bigger moves. We can do some bolt-on acquisitions right now, but the bigger moves will wait until we are in the stance again. Okay. Finally on dividends, you're obviously going to de-leverage the balance sheet a bit over the next few years, but do you think you will still be in a position to pay growing dividends during this de-leveraging period? Yeah. Yeah, we are. The plan is to continue increasing the dividends. We have, like you have said, we are quite confident that with this cash flow, we can have a combination of good dividends and de-leveraging of the company. Okay. Thanks. It's Kimmo Stenvall from OP Markets. Question on the investment or the CapEx levels of the company. You had the graph that there was quite a thin line on the CapEx level, but the structural changes that have happened in the company, so what is your thinking about the CapEx level going forward? Will it come down in one to two years if you compare, for example, when you had the print business already in these regional newspapers and the printing plant in Tampere? I would say that the CapEx level, what we have discussed, around EUR 4 million a year or something like that, is a pretty good estimate also in the future. It is EUR 4 million is going to different kind of digital business solutions and renewals. If you take the history, there wasn't so much print-based investments during the last five, six years ago anymore. The major investments were done when we made new printing facilities 10 years ago. After that, there has been not many investments in the print side. What I mean that the investments and CapEx, what we have done lately has been focused on digital products and services. That's why the EUR 4 million is pretty good estimate also in the future. Okay. Thank you. Apparently there is no more questions, and there is no questions from online. Thank you for your questions, and thank you, Juha, thank you, Kai. Maybe Kai can continue here straight away with the closing remarks, and then we're ready and set. Go ahead. Okay. Thank you very much. Thank you very much for your attention and very good questions. After this broad, extensive digital journey that we have had during last 15, 10 years, we are in a leading position in the brands, in the key areas where we are. I'm happy with that. We have, as you heard, a very well-balanced business mix of media, marketplaces, and services. That's a good ground to grow further. Our current customer base and products enables us to extend the business in different kind of value chains that we heard from the segment reports. We have quite a good presence in CEE, which is of course a great basis for further international expansion. Juha-Petr i told you about the B2B info services and comprehensive data assets, which are a very strong foundation for data economy and different kind of ecosystems on the B2B area. Finally, as Juha told you, we have a strong, stable cash flow, which enables us to good dividend payout and as we think a good total shareholder return also in the future as we have had during last five, six years. With these words I want to thank you very much for your attention being here at Alma House and online. Any day, if you have any kind of questions, we are more than happy to answer those questions and I hope we will see you all when we have the Q3 interim report. 21st October. 21st October. Thank you. Before you leave- Yep. There is one question. Okay. We take it now. Thibault Masson is asking that you mentioned no planned increase spending for M&A to continue to grow post-COVID as the goal is de-leveraging. What about the agreement for the capital increase? Any plans? Yeah, that's a very good question. The board of Alma Media is always open for a very good initiative. In case we have a very good possibility to grow with a remarkable M&A, there's also always the possibility to go into the equity market. That's for sure for Alma Media. We are open for this of course. Now we are talking about our current balance sheet and its ability to do the acquisition. With this balance sheet, without going to equity market, we are having this kind of, in short term, we are having this kind of bolt-on acquisitions to digest the done investments and then later on we will do something else. Of course, equity market is there. It seems to be quite a good demand for new initiatives, especially on the digital area. We have seen some really nice IPOs as well in the area. There's a good chance. We are open for this. Good. Thank you. Thank you very much.