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How to Overcome the Crisis: Survival of the Fittest  Turnaround Transformation of Segodnya Multimedia CJSC from  Value Destruction to Value Creation Guillermo Schmitt CEO – Editor-in-Chief – Publisher Krakow, October 1, 2010
Ukraine ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],A Land Of Opportunities
Daily Newspaper Audience-TNS
Growth GDP UAH-USD Consumer Price Index Key Macroeconomic Indicators
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Which Crisis?
The Internal Crisis 2006
[object Object],[object Object],[object Object],[object Object],The Internal Crisis 2006 In this year Segodnya, a young 12 year old newspaper,  presented a series of internal situations that together were destroying value and putting at risk its survival:
[object Object],[object Object],[object Object],The Internal Crisis 2006
EBITDA 2006
[object Object],[object Object],The Internal Crisis 2006 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Internal Crisis 2006
[object Object],[object Object],[object Object],[object Object],The Internal Crisis 2006 REPLACE IT!!!!!!!
[object Object],The Internal Crisis 2006
Turnaround Actions 2007-2008
[object Object],[object Object],[object Object],Turnaround Actions 2007-2008 ,[object Object],[object Object],[object Object],[object Object],[object Object]
We defined Mission and Values that differentiates us from our competitors
Turnaround Actions 2007-2008
Turnaround Actions 2007-2008
[object Object],Turnaround Actions 2007-2008
Turnaround Actions 2007-2008
Our MBA Team E ditor-in-Chief Circulation Director Financial  D irector Director  of  Printing Plan Advertising  D irector Business  D evelopment  D irector P urchasing and  T enders   Manager E ditor-in-Chief in New Media Director of New Media Deputy E ditor-in-Chief  Marketing  Director
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Educational Programs 2007-2010,  (person/hours) Total (’07-’10) 46.525 MBA 14.112 Local progr. 29.627 Conferences 2.756
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Turnaround Actions 2007-2008
Average Newsprint Waste Kiev Edition Manufacture 50%
Newsprint Productivity Revenue per ton of Newsprint
[object Object],Turnaround Actions 2009-2010 Productivity of Personnel 2006-2010
Turnaround Actions 2007-2008
Paid Pages of Advertising per Issue 2005-2010 (on the average)
[object Object],Share by Income 2006-2009,  (%) Komsomolskaya pravda Facty Source: Adex monitoring 25 43 32 2006 2007 36 38 26 2008 42 35 23 2009 51 28 21
[object Object],[object Object],[object Object],Turnaround Actions 2007-2008
Daily Subscription September 2010 (copies)
TV Subscription September 2010 (copies)
Turnaround Actions 2007-2008 Market Share of Sold Circulation in Principal Cities of Ukraine 2006  – May 2010 Segodnya Komsomolskaya pravda Facty 40,5 36,5 23,0 2006 54,8 21,9 23,3 May 2010
Turnaround Actions 2007-2008
[object Object],Turnaround Actions 2007-2008
[object Object],[object Object],[object Object],[object Object],Turnaround Actions 2007-2008 Comparison Of Income 2006-2009 Newspaper Sales Printing Services Advertising Other
The External Crisis – End of 2008
[object Object],The External Crisis – End of 2008 Advertising Revenue 2006-2009
[object Object],[object Object],The External Crisis – End of 2008 Latvia -18.0 Ukraine   -15.1  Lithania   -15.0 Armenia -14.4 Estonia -14.1 Russia -7.9 Romania   -7.1 Hungary -6.3 United Kingdom -4.9 Slovac Republic -4.7 Austria -3.6 Belgium -3.0 United States -2.4 France -2.2 Poland  1.7 Real GDP Growth 2009 (Annual percent change) Source: IMF
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The External Crisis – End of 2008
[object Object],[object Object],[object Object],The External Crisis – End of 2008 DROP Car editions -63% Analytical editions -52% Business editions -15.0 Woman’s editions -14.4 Daily and weekly national editions -23% TV guides -15% Sport editions -13% Average -36% Advertising Market in the Period of Recession 2009 Source: Adex monitoring
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Turnaround Actions 2009-2010
Turnaround Actions 2009-2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Turnaround Actions 2009-2010
[object Object],Turnaround Actions 2009-2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Turnaround Actions 2009-2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],Turnaround Actions 2009-2010 EBITDTA  2006-VALUE  DESTRUCTION EBITDA  2011-VALUE CREATION
Crisis Produced by Technology 2006-2011
Crisis Produced by Technology 2006-2011 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Crisis Produced by Technology 2006-2011 ,[object Object],[object Object],Ranking of Unique Users, Gemius.  January – July 2010 Segodnya.ua Korrespondent.net Gazeta.ua Podrobnosti.ua
Crisis Produced by Technology 2006-2011 ,[object Object],Number of Users Number of Visits Page view
Sharing Ideas. Inspiring Change
Sharing Ideas. Inspiring Change – Peter Drucker INMA Conferences are about Sharing Ideas and Inspiring Change I thought maybe a bit presumptuous that you could have learned something up to this point of my talk I decided that Peter Drucker had more of a chance of inspiring you than me So in this final part of my talk I will try to tell you what ideas I took from him
Sharing Ideas. Inspiring Change – Peter Drucker ,[object Object],[object Object]
Sharing Ideas. Inspiring Change – Peter Drucker ,[object Object],[object Object],[object Object]
Sharing Ideas. Inspiring Change – Peter Drucker ,[object Object]
Sharing Ideas. Inspiring Change – Peter Drucker ,[object Object],[object Object],EBITDA  2011
Sharing Ideas. Inspiring Change – Peter Drucker ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Land of Opportunities For Print and Digital Media Ukraine
Segodnya’s Management Team

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Presentation Krakow G.Schmitt 01.10.2010