abg - presentation · 2020. 12. 10. · abg - presentation fk distribution has for more than 50...
TRANSCRIPT
FK1
ABG - PRESENTATION
FK Distribution has for more than 50 years developed, changed and disrupted the way Danes receive leaflets and local newspapers
2 FK
• Products
• 2020 Highlights
• Christmas peak season
• Market development
• Future priorities
• Summary
• Q&A
• Kåre Stausø Wigh
• Group Executive Director and CFO
Agenda
• Lasse Ingemann Brodt
• CEO - FK
3 FK
Our productsA Danish distribution and logistics company
LEAFLETSWe cover 70% of all
households every week
LOCAL NEWSPAPERS
We cover 85% of all
households every week
DIRECT MAILWe cover 100% of all
households – tailored to the customer
ONLINE / minetilbud
650,000 monthly visitors and
over 90 million digital leaflets
read per year
LOGISTICS
Packaging for local clients
and 143.000 households
for Deutsche Post
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2020 Highlights
• Significant increase in EBIT due to optimisation
• Successful and ahead of schedule implementation of transition to one weekly distribution round
• Continued outperformance in market regarding ROI and market coverage
• Increased market share in direct mail
• FKs state-of-the-art banderol packaging solution is the preferred system by Deutsche Post
• We have initiated and established a strong defence against an opt-in solution with close cooperation with Danske Medier, Grakom, Dansk Erhverv, Brancheforeningen afDanske Distributører and international players such as ELMA, Intergraf and FEDMA – Developing the dialogue with the Danish Government and EU Commission
• Competition case appealed for reasons of principle (claim: the tech giants are part of the competitive landscape), limited commercial effect
2020 highlights
• Build brands• Create reach
FK Distribution is a state-of-the-art automated platform that…
And thereby driving sales
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Financial performanceRevenue – 2017-2020 EBIT before special items – 2017-2020Mil. DKK
671
933 926
0
100
200
300
400
500
600
700
800
900
1.000
E202020192017 2018
895 - 910
+39% -1% -1,7% / -3,3%
37
135
172
0
20
40
60
80
100
120
140
160
180
200
220
240
E20202017 2018 2019
225 - 235
+98
+37
+53 / +63Mil. DKK.
Source: FK Distribution
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Leaflets – Volume and weight
Our distributed volume is index 112 while the weight is index 118.
Local newspapers - Weight
Leaflets - Active Christmas offers
Online - Number of searches
The Christmas period is busy
Index 114 compared to average Jan. – Oct. 2020.
Index 124 compared to average Jan. – Oct. 2020.
In FK its Christmas in November
Index 200 compared to average Jan. – Oct. 2020.
7 FK
Development in the market for leafletsVolumes – Distributed leaflets
Billion
However ….3,0
2,8
2,62,4
2,22,1 2,0
2,0
1,61,4
1,3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 E2020
Source: Reklameforbrugsundersøgelsen & FK Distribution
- 8%
CAGR
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The leaflet market is stabilising
• Future leaflet volumes seem to be stabilising and revenue is expected to trend downward slightly
• The retailers and the market have settled on a new market equilibrium for leaflets
• The retailers’ physical infrastructure ad stores demand customer inflow i.e. there will remain a need for mass media communication
USERS
64% of users go shopping after reading a leaflet
70% prefer using a leaflet when looking for offerings
86% of those who receive leaflets read them
RETAILERS
2,2 is the ROI when using a leaflet
There is no channel that can matchleaflets when retailers need sales
Leaflets are the best guard against the tech giants
Source: Kantar Gallup 2020
More than 1,5 m. Danes read the local grocery leaflet
Source: Kantar Gallup 2020’’
Comments
9 FK
The leaflet market is stabilising
• ROI has been increasing as FK, together with customers, have optimised customers’ distribution areas
• Other mass media channels are losing effect (i.e. reduced consumption of flow TV) meaning higher effect for those who remain in the market
Search 2,6
Other online 1,8
Display 1,4
Other offline 1,1
TV 3,0
Leaflets 2017-2019 2,2
Search 2,4
Other online 1,6
Display 1,0
Other offline1,5
TV 1,7 Leaflets 2016-2018 1,8
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0% 10% 20% 30% 40% 50% 60%
RO
I
Source: Data Intelligence Share of effect
ROI (2016-2018) ROI (2017-2019)
Comments
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Local newspapers are here to stayThe receivers, politicians and local businesses all love the local newspapers
The citizensDanes love their local newspapers – weekly offers, local news and trust are amongst the drivers
The local businessesThere is a strong support for the local news and businesses show their support for the community by posting ads in the local newspapers
The politiciansBoth sides of the political spectrum will keep the local newspapers alive
to support the local communities – DKK 25 mill. has already been
granted in the latest media settlement
Source: De lokale ugeaviser, 2019, journalisten.dk
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+6Weekly visitsper user
+10Weekly readings
per user
+1.5Mapp Downloads
650KMonthly
users
Strong digital platform +90M
Yearly readings
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Risks and mitigations
1. Political interference – “Yes-sticker”• Considerations are ongoing
• We have a good dialog with relevant stakeholders and our assessment is that the dialogue is moving in the right direction
• Should a “Yes-sticker” be imposed we will counteract by reengaging NejTak+(permissions), increasing prices and launching new products
2. Further reductions in volume • We keep filling in content that fits our production line e.g. direct mails and
magazines• Should the retailers find new areas to profitably reduce volumes we can
increase prices without affecting the effect and ROI
3. Local freely weeklies • Both sides of government support local newspapers, we believe there
is an equilibrium with one newspaper per household
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Future priorities for FK Distribution
• We will continue to grow our market share in direct mail and non-preaddressed magazines by offering new competitive products
• Continuous improvement of digital platform
• We will continue to drive down our costs to offer the market the best possible prices and thereby continue to deliver customers to our customers
Focus on performance and optimisation
New products
International expansion
• We will continue to reach out to selected nearby markets in order to fill up existing packaging capacity in Denmark
1Leaflets volumes are stabilising
2 Leaflets is outperforming the market regarding ROI and coverage
3FK are the most advanced company within our area
We drive sales
Summary
