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Publigroupe Vontobel Medientag 27 Januar 2014
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Publigroupe Vontobel Medientag 27 Januar 2014

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Presentation of Arndt C. Groth, CEO of Publigroupe during the Vontobel Medien Tag 2014

Presentation of Arndt C. Groth, CEO of Publigroupe during the Vontobel Medien Tag 2014

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    Publigroupe Vontobel Medientag 27 Januar 2014 Publigroupe Vontobel Medientag 27 Januar 2014 Presentation Transcript

    • PubliGroupe going forward Focus on a portfolio of technology-oriented companies in media & advertising sector Vontobel Medientag – Zurich, 27 January 2014 1
    • PubliGroupe financial results on 7 March 2014 From news release of 19 November 2013: “… PubliGroupe confirms the anticipated achievement of a balanced operating result for the full year 2013 as announced in late August along with an expected net result around the level of the 2013 half-year report. The half-year result for 2013 came to CHF -9.5 million. The two business segments Search & Find and Digital & Marketing Services (DMS) are developing positively … progressing according to plan are the announced measures to realign capacities and structures at the Holding and Publicitas levels as well as the implementation of the new strategy for Publicitas presented at the end of August 2013 with the goal of a more efficient and increasingly automated media sales approach.” 2
    • Key investment highlights of PubliGroupe Key Driver Measures Profitability Increasingly digital company with mix of established and fast-growing companies Stopping cash drain at Publicitas under new management Continued divestment of non-core assets or assets that are not providing financial returns Adaptation of holding in line with industry benchmarks Growth potential Increasing market demand for ad technology and ad trading services Relevant market share; leading players in respective markets Leading media sales house in Switzerland with Publicitas; local.ch leader in Swiss directory matchmaking market; European leadership with Improve Digital and Zanox 3
    • PubliGroupe investment highlights (detail 1) 1.   Capitalising on digital transformation… Internet ads growing at double digit rate, driven by continued increase in online penetration and higher share of ads budget allocated to this media PubliGroupe focuses on online and is ideally positioned to capture the growing demand for ad trading and ad technology solutions Western Europe Internet ad spend 2005-2015F 2. and value enhancing services  Offering a comprehensive palette from branding to lead generation  Investing in transaction-oriented fields and fast growing RTA/programmatic buying market that provides better rates for long-tail inventory Western Europe Ad Spend CAGR 2005-2015F US$ bn, % share of total Ad Spend 28.7 Newspapers (4.4%) Magazines (4.8%) Television Radio (0.1%) Cinema 28% (0.3%) (0.2%) 5.3 Outdoor 5% Internet 0.3% 18.5% 05 06 07 08 09 10 11 12 13F 14F 15F Market Share Source: ZenithOptimedia, Advertising Expenditure Forecasts September 2013. 4 Source: PubliGroupe Investors Day 2012
    • PubliGroupe investment highlights (detail 2) 3. Solutions across the value chain … 4.  Technological platforms operated for publishers, agencies and advertisers   Owning the end to end relationship between supply and demand   Digital covers all marketing disciplines   … and leading in attractive markets Publicitas leading media sales organisation in healthy Swiss economy Uncontested #1 position of local.ch (50% PubliGroupe) on mobile devices in Switzerland Capitalise on Zanox (47.5% PubliGroupe) leadership in Europe Further develop Improve Digital growth in Europe Digital display ecosystem and selected PubliGroupe investments Agency DemandSide Platform Performance Marketing SupplySide Platform “The Mark” 5 # 2 position in market Premium publisher services Publisher ADUIENCE ADVERTISIER Advertiser & agency services
    • Accomplishments since 2012 Progressing along three distinct paths • Reduction of overhead costs; currently 29 FTEs at 1. Streamlining of operations • • 2. Focusing on core assets headquarters in Lausanne, further reductions planned Appointment of new CEO at Publicitas with turnaround experience; continued, effective rightsizing at Media Sales At local.ch/Zanox efficiency programs in place, with effects to be realised in 2014 and 2015. • Sale of 3 buildings in Bern & Lausanne • Sale of Namics, IT consultancy firm • Sale of 51% of Xentive to Mediaspectrum, Bostonbased company offering premier software solutions • Sale of further, non-strategic assets planned • Acquisition of Improve Digital, leading European 3. Developping tech-oriented assets • • 6 supply-side platform operator Establishment of Spree7 together with MediaMath as a leading demand-side platform (DSP) provider that caters to marketers‟ media buying needs Establishment of automated media marketplace at Publicitas, together with Mediaspectrum a a a a a a • Lean and focused HQ structure to control and very selectively support assets • Operational efficiencies realised within key assets • Divestment of non-core assets ongoing a ongoing ongoing • Focus on technologyoriented companies in the media & advertising sector
    • Portrait core assets 7
    • PubliGroupe segments & companies Media Sales Digital & Marketing Services „The companies within the business segment Media Sales are united in their common mission: to be the preferred partner for media owners and advertisers worldwide, selling media using effective advertising solutions 8 Search & Find „Search & Find‟ produces and sells media products facilitating the search for persons, companies, products and services „DMS‟ brings together a portfolio of international marketing and technology service companies
    • Performance-oriented full-service provider Media Sales Search & Find Digital & Marketing Services * * In Oct. 2013 PubliGroupe concluded the sale 51% of xentive AG to the Boston-based Mediaspectrum Inc • A Group organised into 3 segments: Media Sales, Search & Find and Digital & Marketing Services • Each segment has a clear strategy, defined growth targets and agreed performance objectives • Across the Group one mantra: performance-oriented full-service provider, employing state-of-the-art data processing tools and information technology 9
    • #1 marketer in Switzerland Wide media portfolio; international footprint Number 1 marketer … Highlights Billings 2012 in m in CHF 895 • Number 1 marketer in Switzerland 445 322 Publicitas 1 Goldbach Publisuisse 2 …with an international footprint Operations with local offices 1) Annual Report 2012: Net Sales 2) Annual Report 2012: Operating Revenue 10 Operations only • Historic track record as marketer for 123 years • Unique partner for advertisers, agencies and media owners, offering a wide media portfolio with over 7‟000 products • International footprint with local offices in more than 20 countries including emerging markets, access to media in more than 100 countries
    • Strategy implementation under new CEO Rightsizing of organisation Strategic pillars Full Automation Full Portfolio Variabilisation Focus 11 First results Become efficient and cost leader in marketing advertising space • Appointment of David Klement as CTO, starting 2/14, completing the management team. Main responsibility: development and introduction of Publicitas ad exchange. Offer the most relevant media portfolio to advertisers • Renewal of partnerships and new partnerships (e.g., AZ Medien, CdT, FAO, Arena Cinema, Editoria Abril; S1) “Flexed” cost base to address contract gains or losses Focus on core activities • Implementation of system solution of Mediaspectrum on track. Ongoing conversations with media owners re. system solution of Mediaspectrum; NZZ and Le Temps are first key partners, choosing the new platform. • Rightsizing of organisation in Switzerland & Europe completed resulting in 860 employees worldwide as of January 2014.
    • local.ch: most popular search platform New offers – extension of market lead Commercial success - >CHF 200 m revenue on 100% basis - ~25% EBIT margin More local - city-specific start page - improved search results More offers couponing offers booking restaurants deeper map integration Improved usability tablet optimised user interface autocomplete fault tolerance 12
    • local.ch with higher digital reach Outperformed against search.ch 4.5 100% 4.0 80% 70% 3.5 60% 50% 3.0 40% 30% 19% 18% 19% 16% 17% 18% 16% 15% 15% 2.5 10% 10% 10% 5% 2.0 0% Nov Dez Jan Feb Mar Apr May Jun 2013 1 Source: Unique Netmetrix 13 20% Jul Aug Sep Oct local.ch search.ch [rel. position2] Unique ClientsNetMetrix [mm] 90%
    • Performance Marketing Maximising sales conversion through performance advertising Summary • E-commerce & CPA-based performance marketing tools continue strong growth Affiliate Commission Income, UK, 2008-12 £m • Demand for client acquisition (e-tailers) and referral monetisation (online platforms) tools stays strong • Expansion of available tools, incl. affiliate networks and performance display +5% +13% 667 700 593 467 490 2008 2009 • PubliGroupe offers leading affiliate and performance network in Europe, as well as key German performance agency Performance Network 14 Source: IAB UK 2010 2011 2012 Performance Agency
    • Zanox Europe‟s leading performance advertising network Proposition Management Team • #1 Affiliate Network in Europe Stephanie Lüdecke (CSO) • Focus markets DACH, UK, France, Italy, and Benelux • >4000 advertisers / merchants • >700 FTE, mostly in commercial sales and account management roles Michael Von Stern (CFO) • Automated marketplace platform drives campaign management Christian Rebernick (CTO) • Mobile enabled • Won several awards, incl. Best Affiliate Network in 2012 More than 4’000 Advertisers Thomas Joosten (CEO) Financials (EURm) Market position Revenue • #1 in UK #2 in Italy #2 in Spain • 15 #1 in France • 2012 #1 in Benelux • 2007 • • 165 #1 in DACH • 460 #2 in Nordics
    • Premium Publisher Services Supporting premium media owners to monetise their ad inventory Summary • Real-Time Advertising is growing exponentially Real-Time Advertising Spend, France, Germany, UK, 2010-17E US$ m 2,055 • Publisher Trade Technology is becoming essential for media owners +39% • Inventory Yield Optimisation (Direct and Programmatic Ad Sales) becoming a key capability for media owners 701 Mobile & Video 427 1,522 Direct 928 Indirect 455 1,069 • PubliGroupe offers leading technology and yield management services throughout Europe 781 +145% 192 207 79 202 667 783 866 554 301 529 38 2010 2011 2012 2013E 2014E 2015E 2016E 2017E Publisher Trade Technology 16 Source: IDC
    • Improve Digital Leading European publisher trade technology Proposition Management Team • #1 European Publisher Ad Exchange and SSP • Offices in Benelux, Germany, UK, and Spain • >40 FTE, mostly in tech and sales • >100 premium publisher customers • >250 connected demand-side partners, incl. all key DSPs • State-of-art platform, fully RTA enabled, premiumformat, mobile- / video-enabled, customisable private exchange • Won several awards, including 2013 High Growth Awards, Deloitte Fast 500, Red Herring 100, Inspiring 50 Clients Joelle Frijters (CEO) Janneke Niessen (CIO) Financials eCPM (EUR) Billing (EUR) Impressions (in Mill.) 91 75 47 0.46 0.52 2012 2013* 34 2012 2013* *2013 preliminary 17
    • Advertiser & Agency services Helping advertisers & agencies to optimise and execute media strategy Summary • Online ad spend continues to grow at double digit rates • New online trade tools offer better monetisation options and add complexity Advertising Spend, Western Europe, 2012-16E US$ bn +3% 124 8 128 8 Other +2% • Advertisers and agencies need more help defining complex trade strategies 112 8 115 8 120 8 33 37 Online +10% 27 30 40 • PubliGroupe assists advertisers and agencies to optimise ROI and execute best-in-class trade strategies 13 13 13 13 13 Magazines 0% 26 25 25 25 25 News papers -1% 39 39 40 41 42 RTV +2% 2012 2013E 2014E 2015E 2016E Trade Desk Powered by 18 Source: Zenith Optimedia Media Agency
    • Powered by Spree 7 Transparent trading desk for independent advertising agencies Proposition Management Team • Trading desk for independent agencies and nonagency represented advertising customers • Exclusive Mediamath partner in DACH • Small, strong team of dynamic ad trade experts • Early-stage investment • Berlin-based • Aim to grow trade volumes, data usage, and eventually develop trade platform Selection of clients/partners Victor Zawadzki (CEO) Thomas Kaczensky (VP Tech) Milestones • Fully operational since July 2013 • Signed 26 agencies to date, aiming to get to 50 in 2014 • Ran more than 100 campaigns in past 6 months; about 20-50 campaigns per month at present • Strong focus and good progress on implementation of data (e.g. Zanox) 19
    • Executive summary: PubliGroupe will deliver growth & profits  Creation of value through leveraging the different assets    20 in the Group, building a portfolio of leading advertising technology-oriented companies Effective measures at Publicitas being implemented under new management Divestment of non-core assets or assets that are not providing financial returns will continue Adaptation of holding to the level of profit of the remaining Group in line with industry benchmarks
    • Solid balance sheet; focus on core assets Andreas Schmidt, Chief Financial Officer 21
    • Solid balance sheet Recorded equity does not fully reflect full value of the group as of CHF mio as of  No goodwill With the Swiss GAAP FER presentation, all goodwill is offset with equity  Negative Zanox value Zanox is recorded with a negative equity (-CHF 19.6 m) because of this goodwill treatment  Under-valued real estate In addition, real estate is recorded with adjusted acquisition cost 30.06.2013 31.12.2012 Current assets 331.8 379.2 Non-current assets 146.3 153.0 Total assets 478.1 532.2 Current liabilities 263.1 250.9 71.4 72.6 137.3 195.6 6.3 13.1 478.1 532.2 Non-current liabilities Equity, shareholders of PubliGroupe Ltd Minority interests Total liabilities and equity Conservative balance sheet approach Participations and real estate values only partly included 22
    • Key assets in PubliGroupe portfolio Local JV with Swisscom Zanox JV with Axel Springer Improve Digital Spree 7 Neumühlequai Zürich Publicitas 50% 47.5% 85% 80% 100% 100% Leading search platform N°1 European affiliate network Well positioned SSP Promising DSP partnership w. leading tech company Media Top location ZH Leading media sales organisation in CH with international assets (especially Asia) PubliGroupe is increasingly becoming a digital company with mix of established and fast-growing companies 23
    • PubliGroupe real estate portfolio - key figures 3 assets located in Switzerland and in France Zürich Delémont Paris 1982 | 4'695m2 3'518 TCHF 1992 | 1'045m2 53 TCHF 1970 | 365m2 41 TCHF Total surface 6’105 m2 Total rental revenue 24 : : CHF 3.6 m
    • PubliGroupe press participations FPH (Freie Presse Holding)  Subsidiary of the Swiss publishing house Neue Zürcher Zeitung, combining all major regional press participations of the group  St. Galler Tagblatt, Thurgauer Tagblatt, LZ Medien are only some of the titles in FPH portfolio Stake % 25% SNP (Société Neuchâteloise de Presse)   Part of the Hersant Group and one of the prominent newspaper publishers in French speaking Switzerland 29% Key media : L'Express and L'Impartial Südostschweiz Presse AG  25 Subsidiary of the Südostschweiz Medien Group in charge of printing well known titles such as Südostschweiz Graubünden, Bündner Tagblatt, Bündner Woche 20%
    • Thank you; Q&A 26