Nordisk Film on a controlled offensive
Nordisk Film is spearheaded by three leaders, all determined to achieve what no company head before them has: To present a positive bottom line for four consecutive years. The means to make the Nordisk Film name synonymous with solid economy and development are teamwork, business acumen and simple common sense.
Nordisk Film has enjoyed its positive years, but in the past decade has not recorded two profitable years in a row. The bustle of life in the company’s Valby headquarters is reminiscent of Nordisk Film’s heyday when the Olsen Gang films and the TV series Matador were simultaneously in production. A visit to the canteen around noon speaks for itself. Nordisk Film has become the place where talented media people want to invest their time and energy. The Olsen Gang has even made a comeback, this time in 3D!
On the third floor of the media building, I met three men sitting in the same open-space office. They have a plan and so far, it has succeeded. Together, CEO Allan Hansen and his two corporate management colleagues, chief financial officer Thomas Rehling and business development director Asger Flygare Bech-Thomsen, are well on the way to building a sharply focused company with healthier finances than it has had for a long time, without stifling the spirit and creativity of the 104-year-old entertainment business.
Another year of profit has been forecast for Nordisk Film, The second time with you at the helm, and you are expecting the company to be in the black again – what is your formula?
Allan: ‘It’s been important for us to address the challenge as a team, both corporate management and the other members of the management group. And of course we have coordinated closely with my colleagues in the Egmont Group management. We have effected many changes since the beginning of 2009 and tried to explain the process openly and honestly to employees. This has been a factor in the general understanding and support we have encountered. We have poured all our energy into establishing focus and setting priorities. That’s the only approach that will enable us to invest in development and growth and thus be less vulnerable.’
Allan: ‘It’s been important for us to address the challenge as a team, both corporate management and the other members of the management group. And of course we have coordinated closely with my colleagues in the Egmont Group management. We have effected many changes since the beginning of 2009 and tried to explain the process openly and honestly to employees. This has been a factor in the general understanding and support we have encountered. We have poured all our energy into establishing focus and setting priorities. That’s the only approach that will enable us to invest in development and growth and thus be less vulnerable.’
Thomas: ‘We’ve made a lot of progress with our financial management. Every month all Nordisk Film’s business areas focus on delivering goals and ensuring that the results are true and fair so we avoid unpleasant surprises at the end of the year. Lastly, we’re focusing on cash flow, and I’m impressed at how good we’ve become at converting net profits into “cash in the coffers”. That is ultimately the foundation that enables us to invest and grow the business.’
How would you briefly describe the strategy you are pursuing?
Allan: ‘Overall we now have the company under control. We have adapted it to the market challenges we face. We have cut our costs. I’d call what we’re doing now a “controlled offensive”. We need to expand our position as Scandinavia’s leading entertainment company in films, games and cinema operations. And earn money on those activities.’
Allan: ‘Overall we now have the company under control. We have adapted it to the market challenges we face. We have cut our costs. I’d call what we’re doing now a “controlled offensive”. We need to expand our position as Scandinavia’s leading entertainment company in films, games and cinema operations. And earn money on those activities.’
Asger: ‘Our main challenge is to create profitable growth. Our strategy rests on three pillars, each based on the areas where we create value: films, games and cinemas. We believe in our rights holdings and consumer relations. Our strategy reflects that belief. One of our development projects is NF Live, which essentially expresses our belief in the potential of live entertainment production. We’re not talking about high culture here, I’d probably call it blatant entertainment or popular art.’
Allan: ‘We’re already working with various forms of alternative content for our cinemas, one being Opera Bio, an area we must develop. And new cinemas are in the pipeline. On the games side, we need to build on our position, follow SONY online and get involved in developing smaller games. As for films, we believe our future activities will be a hybrid of production and distribution. Having a foot in both camps is a tremendous advantage for us – particularly as regards taking on the digital future and getting a piece of the income streams it offers. We have also established a digital set-up that puts us in a good position to meet the future .’
Thomas: ‘We have reached the point where we can gradually switch to a higher gear in terms of investment in profitable growth opportunities. Fortunately, projects and investment opportunities abound, both good and bad, but at decision time it’s often hard to know the difference between the two. We can’t totally avoid wrong investments, but we are very conscious of the need to minimise them. So we insist on getting fact-based business plans to support investment recommendations and on having the salient competencies and people in place before we make decisions. I should also emphasise that, as a company, we have limited resources and therefore, despite the array of promising investment projects, we have to be selective and often have to turn down offers – even for good projects.’
Since Nordisk Film was reunited in 2002, With Production and distribution again under the same management, successive management boards have worked hard to create a single culture, Nordisk Film united. What holds Nordisk Film together today?
Asger: ‘We believe that we can produce the best results as a group. But synergies don’t come out of the blue and cannot be constructed. Sometimes we have to accept that the only things we have in common are a set of values, a common rapport and the same canteen. But when opportunities arise, we have to seize them and be geared to setting something in motion.’
Asger: ‘We believe that we can produce the best results as a group. But synergies don’t come out of the blue and cannot be constructed. Sometimes we have to accept that the only things we have in common are a set of values, a common rapport and the same canteen. But when opportunities arise, we have to seize them and be geared to setting something in motion.’
Allan: ‘Our job is to create the best conditions for our business areas, so that they have freedom to act and run the business on their own terms. From this initiatives arise which can act as the foundation for future cooperation and synergies across areas. It is our experience that there is a great willingness to work together.’
Asger: ‘Politically, our responses may differ externally. There can be differences in the way we respond, depending on which part of the business is concerned. We operate in different markets and competitive situations. The interests of the business will always come first, and we rely on the relevant trade associations in each area, but nevertheless we can still be part of the same family.’
The headline for your activities is ‘four years of profit’. Some might claim this does not sound particularly ambitious. What is your response to that? And what do you plan for the years after 2012?
Thomas: ‘We focus on delivering what we promise and try not to promise more than we can deliver. So the formula is ambitious but the goals realistic. Naturally our job is to deliver profits every single year in future and, in the long term, preferably higher profits and cash flow that will provide sufficient funds for us to invest in the growth and development of Nordisk Film.’
Thomas: ‘We focus on delivering what we promise and try not to promise more than we can deliver. So the formula is ambitious but the goals realistic. Naturally our job is to deliver profits every single year in future and, in the long term, preferably higher profits and cash flow that will provide sufficient funds for us to invest in the growth and development of Nordisk Film.’
Allan: ‘We must remember our history. Running Nordisk Film profitably has always been hard. 2010 represents only the second straight year we have been able to present positive annual results (at EBT level, editorial note). We now have a handle on the business and are thus ready for development. We all need to have a visible goal on the horizon.’
