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  • 1. Investors’ Day 2011 yZurich, 1 December 20111
  • 2. Overview presentation order Theme Speaker Time (in mins) Group p Intro / Welcome / Strategic Overview g H.P. Rohner 20 Media Sales Positioning Publicitas for the future B. Roeschlin & P. Böni 40 Q&A Group / Media Sales Presentations: AdMarket / Augmented Reality A. Gedenk / M. Pittner 20 Break 30 g All segments Strengthening digital growth across the Group g g g g p Digital and mobile growth with local.ch E. Baehler 20 Portfolio DMS with special focus on Zanox R. Martignoni 20 Q&A Search / Find & DMS 20 Group Solid balance sheet secures strategic freedom A. Schmidt 30 Concluding remarks H.P. Rohner 15 Q&A 20 Total approx. 4 hrs2
  • 3. OVERVIEW KEY DECISIONSHans-Peter RohnerH P t R hCEO & Chairman of the Board3
  • 4. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardKey decisions on Group level PubliGroupe continues to operate in 3 segments with key brands local ch local.ch, Publicitas, Zanox Repositioning and further development of Publicitas with new governance structure str ct re Sale of majority of real estate portfolio; proceeds to be mainly distributed to Search & Find Media Sales Digital & Marketing Services shareholders Segment switch from IFRS to Swiss ‘Search & Find’ ‘Media Sales’ is the ‘DMS’ brings GAAP FER in 2012 in order to better produces and sells preferred partner together a portfolio show the real performance of our digital media products for media owners of leading inter- assets facilitating the and advertisers national marketing search for persons persons, worldwide, selling orld ide and technolog technology PubliGroupe to move on with solid companies, media using service companies balance sheet and bank-independent products and effective investment capacity of >CHF 100 mio services advertising solutions End f double E d of d bl mandate Ch i d t Chairman/CEO /CEO as of General Assembly 20124
  • 5. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardKey decisions on segment level Media Sales with a new set of important measures and initiatives to monetize customer relations, streamlining processes and boosting digital and online- business. Dedicated board committee to support and facilitate implementation under leadership of CEO Beat Roeschlin. Search & Find to further develop and dynamise local.ch as a cornerstone of Group strategy. Continued partnership with Swisscom and one successful organization under the leadership of CEO Edi Bähler. DMS to focus on successful management of key participations (Zanox and Namics); further developing strategic initiatives and preparing M&A opportunities Zanox Group subsidiaries; note: Digital Window is the holding company for Affiliate Window and buy.at within the defined strategy.5
  • 6. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardA group well positioned for the future… Global presence with about 2,200 employees Allocation of staff by segment (in %) Geographical distribution (in %) Media Sales 55.5% Switzerland 73.5% Search & Find 22.9% Europe 15.0% Digital & Marketing Services 18.0% Americas 2.5% Corporate and others 3.6% Asia/Pacific 9.0% The group has more than 400,000 customers: − Private persons − SME − National advertisers − International brands The group cooperates with: − Well-known media companies − Digital media owners − Different types of websites MSN6
  • 7. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forward… along marketing value chain, “Marketing. More. Effective” Customer Awareness Customer Acquisition Customer Retention Focus of service Client typology Attention Search Desire & Evalua- Pur- Loyality Consulting SME & Interest & Find Inten- tion chase Sales National tion Development GlobalSearch & FindLocal.ch SalesLocal.fr SalesHome.ch SalesMedia SalesPublicitas Consulting & Sales gAdnative Consulting & SalesPublimedia Consulting & SalesDigital & Marketing ServicesNamics Development & ConsultingInstanz Development & ConsultingSVBmedia ConsultingZanox (DigitalWindown, Buy.at) Sales (enabled through platform)eProfessional ConsultingCorporate & othersDenon Development & Consulting 7
  • 8. Part Hans-Peter Rohner I Final remarksConclusion & outlook Switzerland HQ in Lausanne Americas Europe Asia/ Pacific Canada Austria Belgium France Australia China Japan USA Germany Greece Italy Malaysia Singapore Taiwan Netherlands Spain UK Thailand India SwitzerlandWho are we today: Who we want to be tomorrow: A company in a business transformation situation that A more compact company that is fully geared towards continues to be marked by significant changes in the media making marketing processes more efficient (ROI) for and marketing/advertising environment. marketers and advertisers. A company with print still being the main volume A company where online sales and profits will contributor, albeit with the digital business growing in become even more important and make up more importance. than half of total business (incl. participations). A company that still largely thinks and operates like a A company with a digital corporate culture, applying incumbent player with a culture that is strongly affected by innovative participation models. its 121 year history.8
  • 9. MEDIA SALES Leaner. More flexible. More profitable. p Beat Roeschlin CEO of Media Sales9
  • 10. PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015 Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development10
  • 11. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsStrategic premises and key decisions going forward Leaner, more flexible, more profitable Accelerated shift towards digital New set of optimisation measures: - in Switzerland - in international markets - in headquarters (central costs) Enrichment of print offerings Further investments in digital market The Board of Directors of PubliGroupe establishes a dedicated strategic committee11
  • 12. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015 Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development12
  • 13. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsChallenging advertising market environment Traditional advertising spend1 vs. Real GDP (CH) Erratic advertising 10% market in recent years 5% 5% 4% 5% 3% 3% 2% Print dropped from CHF 4% 4% 3% 1% 2.5 bn. to CHF 2 bn 0% (2004-2010) -1% -3% 3% -2% -5% Advertisers shift from -10% print to online CH real GDP growth -15% Trend likely to continue CH traditional media spend growth -15% -20% 2004 2005 2006 2007 2008 2009 2010Note: 1) Traditional media includes: Print; Electronic; Out-of-home. It excludes online and direct advertisingSource: SECO historical data & Fall 2011 fS hi t i l d t F ll forecast; Stift t Stiftung W b t ti tik S h i PWC Werbestatistik Schweiz; 13
  • 14. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsSwiss advertising has continuously shifted from print to online In response to the crisis and market consolidation MS has taken reactive measures Swiss advertising market 2007 – 2010 CAGR CHF m 1 Cost base reduction Total - 1.3% 4,362 4,410 4,197 4 197 10% 13% 3,883 Digital + 22.0% 3% 2% 19% 13% 17% 13% 2% Radio - 2.6% 3% 2 New business model 16% 14% 15% 16% TV + 1.9% 1% 1% 16% 15% 1% 1% - 2.9% Out of Home 3 More customer oriented 57% 55% business set-up Cinema - 11.3% 49% 48% Print - 7.0% 4 New digital unit 2007 2008 2009 2010Source: Media S l and external analysisS M di Sales d t l l i 14
  • 15. Part Beat Roeschlin I MS in the past four years I Plans for the next four years CostCosts decreased to adjust to lower volumes 1 decrease MS achieved 114m CHF savings to redress EBIT… … along 3 axis CAGR 2,200 1,966 venue 1,736 1,800 I Downsizing of FTE resources 1,296 1 296 Rev 1,400 1,174 - 15.8% 1,000 CHF M 293.7 300 271.7 Expenses s 230.1 250 - 469 FTE (-13.9% p.a.) 179.7 Resizing local and regional 200 114 m CHF cum. savings II - 15.1% branch offices CHF M 150 20 13.0 0.5 0 EBIT -29 0 29.0 -29.0 29.0 E 20 -20 Reducing R d i central costs lik t l t like III management, services, etc. -40 CHF M 2007 2008 2009 2010Source: P bliGS PubliGroupe published results; M di S l i t bli h d lt Media Sales internal d t l data 15
  • 16. Part Beat Roeschlin I MS in the past four years I Plans for the next four years BusinessNew business model to respond to new market reality 2 model Move from exclusive contract logic… … to establishing non-exclusive sales logic Print contract type breakdown 2007 – 2010 Media Sales pricing scheme - old & new Media Sales P Price 61% 42% (CHF) 1 Minimum transaction fee covering market share the cost of order processing 2 Degressive sales commission 22% +19pts 41% Non-exclusive Portfolio sales contracts 2 78% -19pts 59% 1 New model Exclusive contracts Old model d l 0 100 200 300 400 Ad500 price 2007 2010 (CHF) While many larger publishers have built their own Modular, transaction-based model, different service sales force, Media Sales still owns a 42% share levels and full transparency with a portfolio logicNote: Direct sales are sales lost to publishers’ own sales force publishersSource: Media Sales internal data 16
  • 17. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsStrong exclusive mandates and key cooperationagreements Publishers (selection) | Exclusive mandate Publishers (selection) | Cooperation agreements17
  • 18. Part Beat Roeschlin I MS in the past four years I Plans for the next four years Organi-Digital transversal unit and customer segmentation 3 sationto better serve market needs New organisation relaying innovation and processes across units and to clients PUBLICITAS CH P INTL P DIGITAL Advertisers/ Advertisers/ Advertisers Publishers Publishers Publishers Small Local & National Exclusive Trans- All Enterprise Regional Accounts & accounts national segments & SMEs Agencies accounts Client segments Private Dedicated Sales Portfolio Sales Publimedia Publicitas Digital EBIT contributors MS units Sales units Supporting transversal unitsSource: Media S l i tS M di Sales internal d t l data 18
  • 19. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsCreation of a dedicated digital unit 4 Digital Digital turnover 2007 - 2010 Towards a more digitally driven company CHF m CAGR Creation of Publicitas Digital Publicitas CH 1) 50 46.0 - Development of proprietary digital products 45 + 15.7% 39.5 - Training, new sales i T i i l incentives, di it l hi ti digital hires 40 35.7 35 New Publimedia 29.8 30.2 30 - Launch of an integrated Ad Market platform + 36.1% P 23.5 - Integration of Web2com2 into Publimedia 25 19.7 17.8 20 15 16.0 16 0 16.0 16 0 15.8 15 8 - 3.7% Hired digital sales experts licitas Intl. 10 12.0 5 Setup of integrated tools and systems 0 across all offices 2007 2008 2009 2010 Publ Transfer of digital best practices across geographies MS Total P International Publicitas CHNote: DigitalN t 1) Di it l campaign b ki and management platform suite 2) I 2009 and 2010 W b2 i booking d t l tf it In d 2010, Web2com was consolidated within th DMS segment lid t d ithi the t 19
  • 20. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015 Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development20
  • 21. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsOutlook: traditional segment to stabilise according to analysts… Swiss advertising market prevision | 2011 – 2015 CAGR CHF m Markets currently addressed Total + 2.8% 4,864 by Media Sales 2015 (CHF m) 4,348 Digital + 9.2% 24% 19% 1,986 28 2,014 4% Radio + 1.6% 4% Print Cinema 14% 15% + 2 1% 2.1% TV 16% 16% 1% 1% Out-of-Home + 2.7% Objective 2015 + 3.9% Defend print market share at Cinema 45% 41% 40% level Print + 0.3% - considering current portfolio - E2011 E2015 External analysts market viewNote: Cinema market share i 100% and not i l d d i thi graphN t 1) Ci k t h is d t included in this h 21
  • 22. Part Beat Roeschlin I MS in the past four years I Plans for the next four years... But Media Sales plans with more conservative forecast fortraditional media Traditional advertising* spend vs. Real GDP (CH) Swiss ad market and 10% Analysts’ view economy strongly 5.4% correlated (>0.95) 4.5% 4.3% 5% 2.9% 3.2% 2.5% 2.6% 2.1% Strong uncertainty g y 2.7% 2 7% 3.6% 3.6% 0.9% 1.4% 1.9% about Switzerlands 0% economy -0.5% -2.6% -1.9% -5% Media Sales mgmt considers more conservative forecast -10% CH real GDP growth CH traditional media spend growth Correlation based Lower cost structure prevision (GDP & -15% needed according to ad spend) – -15.3% Publicitas view more conservative -20% scenario i 2004 2005 2006 2007 2008 2009 2010 E2011 E2012Note: 1) Traditional media includes: Print; Electronic; Out-of-home. It excludes online and direct advertisingSource: SECO historical data & Fall 2011 fS hi t i l d t F ll forecast; Stift t Stiftung W b t ti tik S h i PWC Werbestatistik Schweiz; 22
  • 23. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsGrowing digital segments Swiss advertising advertising prevision | 2011 – 2015 CAGR Markets currently addressed by CHF m Media Sales 1,160 Total + 9.2% 2015 (CHF m) 5% 6% Mobile Internet + 32.2% 206 264 470 8% 816 Online & Mobile TV + 25.3% Classifieds Display 23% 5% Directories + 19 6% 1 19.6% 20% Objective 2015 18% 20% Display + 12.8% Increase digital market share from 6% today to 20% Classifieds + 5.7% - display & classified; possibly entering 48% 40% mobile internet and other digital growth + 4.4% markets in the future - Search E2011 E2015Note: 1) PubliGroupes Local.ch asset will capture growth in the online directories segment / 2 Display and classified addressable market onlySource: P bli it analysisS Publicitas l i 23
  • 24. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsOffline and online advertising formats converge Budget decisions to be increasingly taken on a more g gy informed basis, both online and offline Data is king Advertising market experiences a continued shift of power from publishers towards advertisers Digital advertising replacing or complementing traditional Digital g offline media through new technology becomes Advertising becomes therefore more efficient across all ubiquitous media categories (Augmented reality/smart ads; digital signage…) The audience is increasingly building its own personalised Advertising media experience through connected platforms becomes Advertisers are going to engage in a more personal personal relationship with their audience24
  • 25. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015 Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development25
  • 26. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsMeasures taken along two pillars: strengthen the traditionalbusiness and accelerate growth of digital activities1st PILLAR Optimisation measures being launched: p g Become yet leaner and more adapted to Leaner and STRENGTHEN market the traditional more flexible print business cost Intervention and enrichment of print offerings structure along three areas: Switzerland, international, central functions2nd PILLAR Grow digital footprint: ACCELERATE Further invest in digital initiatives the digital Higher share agenda Develop new digital products to drive growth of digital & explore new p turnover opportunities 26
  • 27. Part Beat Roeschlin I MS in the past four years I Plans for the next four years 1st PILLARThree areas of improvement have been identified Improvement Expected EBIT-effect Related Projects 2015 areas Process harmonisation Swiss Centralisation of sales back-office function1 CHF 9 – 11 m business Improvement of sales efficiency while maintaining local presence International Divestiture and restructuring of low performing units2 CHF 4 – 6 m business Reduction of regional headquarters / legal entities Centralisation and optimisation of support & admin3 Central cost functions/processes CHF 5 – 7 m Consolidation and optimisation of IT infrastructure p Total CHF 18 – 24 m 27
  • 28. Part Beat Roeschlin I MS in the past four years I Plans for the next four years 1st PILLARExpected CHF 18-24 m EBIT improvement by 2015;large effect in 2012 Incremental EBIT effect vs 2011CHF m 18 - 24 17 - 23 14 - 20 5-7 4-6 3 Central cost 2-4 6 - 12 3-5 4- 6 4-6 EBIT effect 0-2 2 International Business 0-2 6-8 9 - 11 9 - 11 9 - 11 1 Swiss Business 2012 2013 2014 2015 FTE CH ~100 FTE reduction Total FTE reduction anticipated by 2015: ~200 INTL ~100 FTE Restructuring cost 15 - 20m CHF Investments 5 – 10m CHF28
  • 29. Part Beat Roeschlin I MS in the past four years I Plans for the next four years 2nd PILLARGrowth with performing digital products Digital products portfolio Development to 2015 Booking platform for display (CH) Develop exclusive inventory and new offers Display Ad4Quality ad4quality Sales window for “pools” and other Launch rich media offers products Enable online display sales in every branch p y y ormance Premium CH performance ad network Ad4max Mobile (1H 2012) - 1st mover in CH Leader in CH with 1.5 bn imp./year Develop local and regional advertising markets Perfo (on premium segment) Launch overseas licensing / extensions Digital OOH 2 Build a coalition of adscreen providers “On-the-move” ad sc ee network O t e o e ad-screen et o O Develop network to have local/regional flexibility Reach 3 million passengers per week Develop a powerful national adscreen footprint Further develop i F th d l inventory ( i t & online) t (print li ) Online Ad market (information,+ planning, booking, reporting) Establish dynamic offering (eg. last minute deals) Incorporate mobile offeringsNote: QOD=QualityN t 1) QOD Q lit on Di l Display; 2) OHH O t f H OHH=Out-of-Home 29
  • 30. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsPrint decreases in 2012, stabilises in 2013 and onwards;digital to grow steadily Media Sales print and online gross margin development | 2011 – 2015 Print will decrease CHF m due to structural 115 shift and continued 110 Media S l M di Sales CH trend from exclusive 105 print business mandates towards 100 portfolio sales 95 20 Illustrative expected trend Digital to grow at 15 Portfolio d P tf li and new least in line with the digital products and 10 services market 5 - 2011 2012 2013 2014 201530
  • 31. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsConclusion & key take-aways Media Sales / Publicitas to become leaner, more flexible, more profitable Optimisation measures along three intervention areas: Switzerland, international and central functions Expected CHF 18-24 m EBIT improvement by 2015 from cost reduction Growth with performing digital products and through enrichment of print offerings with potential EBIT upside Board of Directors of PubliGroupe establishes dedicated strategic committee headed by Pascal Böni, to support transformation and management team.31
  • 32. Closing remarks g Pascal Böni Member of the Board PubliGroupe & Head of Steering Committee Publicitas32
  • 33. Part Pascal Böni I Mission & role of the steering committeePublicitas: re-positioning a market leader in turbulent timesRole of the steering committee Changing Play Pl new role i a revised value chain with i l in i d l h i ith increased competition d titi Industry Economic realities (industry concentration & consolidation, downturn etc) Logic ask for evolutionary but also revolutionary steps From intermediary logic (print) to direct booking industry logic ( y g (p ) g y g (online) ) From cost- Shift from cost cutting to service provisioning under the leadership of cost-cutting cutting to Beat Roeschlin efficient & Assure outside-in rather than inside-out perspective professional services Encourage and ask for increased speed of implementation and time to market within P bli it k t ithi Publicitas BoD Proactive interface to the BoD of PubliGroupe involvement Accelerate decision making related to operational top priorities Improve digital & online-footprint & encourage higher rate and speed of innovation 33
  • 34. Part Pascal Böni I Mission & role of the steering committeeKey Positioning Questions to be addressedRole of the steering committee Service Development of our off- and online workflows and –tools D l t f ff d li kfl d t l Offering to Enrichment of our service offering (such as RTB, AdMarket, dynamic our Clients pricing, integration and combination of digitally enriched content, ie QR codes, into our value chain etc.) “Ease of use” of Publicitas - interfaces Group Management of growth potential across the Group Structure and Print focus vs. enlargement of services into digital & online Organizational Evaluate meaningfulness of shared resources (Finance, IT, HR etc.) in Integration view of business specific needs and time to market considerations Publicitas Strategy review related to the international network International Network leverage & service-related synergies International network leadership 34
  • 35. Part Pascal Böni I Mission & role of the steering committeeNext StepsRole f the t iR l of th steering committee ittForm Steering Committee under th l d hi of P St i C itt d the leadership f Pascal Bö i l Böni Committee size 3 – max. 4 Part of Group BoD and ultimate decision making body = BoDTiming Committee composition finalized by 31 Dec 2011 Start of committee work January 2, 2012Expectations Communication on committee composition by year end 2011 First results related to Group management structure & organizational integration Q1 Increased pace related to all key Publicitas challenges35
  • 36. Q&A SECTION GROUP & MEDIA SALES36
  • 37. Presentation of P bli di &P t ti f PublimediaAdMarket family.1st of December 2011© Andreas Gedenk, CEO I Publimedia AG 2011
  • 38. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyHighlights & Milestones.• Relaunch new Publimedia: • 1st Mai 2011 • Merger of Publicitas Publimedia and web2com • Focus: Print & Online (all categories) • Dedicated to large national advertisers and their agencies• Launch AdMarket family: • 12th October 2011 • AdStore, AdPlanning, AdCampaign, AdReporting • Focus: efficiency and create value
  • 39. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyPosition & Claim.• Publimedia is the key account unit of PubliGroupe and Publicitas• Main Partner: Advertiser, agencies & publishers• «open media services» positions Publimedia as a service provider• Open media: Print & online (all categories)• Services: Media, marketing, special & network
  • 40. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyOverview. Media Marketing Special Network Service Service Service Service AdMarket Analysis Consulting Cross- AdStore Controlling Concept Business AdPlanning Touch Point Creation PG offers AdCampaign Production AdReporting Print Mobile Display Di l Affiliate Affili t Social Media ad4max SEM SmartAds Performance Lead
  • 41. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyOverview. Media Marketing Special Network Service Service Service Service AdMarket Analysis Consulting Cross- AdStore Controlling Concept Business AdPlanning Touch Point Creation PG offers AdCampaign Production AdReporting Print Mobile Display Di l Affiliate Affili t Social Media ad4max SEM SmartAds Performance Lead
  • 42. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdMarket goal.• Create and develop the most efficient and dynamic marketplace in Switzerland• Combine print & online (all categories) coherently• Attractive price & content specials• Strenghten this with a combination of performing & powerful tools
  • 43. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdMarket family. Free (Print / Online / Mobile / Tablet) Access Price- & Content Specials, Ratecards Paid Area - Analysis - Controlling - Calculation - Planning - Booking - Reporting
  • 44. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdStore.
  • 45. Part Andreas Gedenk I Presentation Publimedia & AdMarket family
  • 46. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdPlanning.
  • 47. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCoverage of media. Print 62% Cinema Internet, Mobile, Tablet T bl t
  • 48. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCinema-trailer - as of January 2012. Choice of the movie Choice of the week Insights of the trailer
  • 49. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyTransfer to adcampaign. 1. Planning 2. Calculation 3. 3 Booking
  • 50. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdCampaign.
  • 51. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyConflict control.
  • 52. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdReporting.
  • 53. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCampaign overview.
  • 54. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyPerformance overview.
  • 55. Part Andreas Gedenk I Presentation Publimedia & AdMarket familySummary of the admarket family. • Integration of the full range of data • Individual presentation• Free access of data• Print, Online, Mobile, & Tablet-Ratecards• Pi Price- & Content- C t t Specials • Added value• Unique • W b based Web b d• Coverage 62% • Conflict control• Cinema-Trailer
  • 56. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyThank you for your attention. y y
  • 57. Augmented Reality in MediaShort introductionMarc OlivierMarc-Olivier PittnerZürich, December 1st 201259
  • 58. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBenefits for Advertisers Show videos and other dynamic content Drive the potential customer to an opt-in mechanism p p Drive the customer to a web shop or a physical outlet Engage with customers thru social networks Tracking of customer actions and data analysis60
  • 59. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBenefits for Publishers Transfer traffic from paper to digital Bring interactivity to the paper g y p p Tracking of user actions and data analysis Measure qualitative return for advertiser’s Be more innovative than competitors Drive more advertising income61
  • 60. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaSome history62
  • 61. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBasic technologyImage recognition leads to specific Action Instant image recognition using the phone s camera phone’s The technology can be integrated in any 3rd p y App (SDK) gy g y party pp ( ) After image recognition different actions are possible Actions can be linked to the user’s geographic location Actions can be built based on existing internet web services 63
  • 62. Demo Movie64
  • 63. SEARCH & FIND / M h k MatchmakerFurther developing lF th d l i local.ch online revenue and l h li dincreasingly establish mobile offeringEdi BählerCEO local.ch65
  • 64. Part Edi Bähler I Market Analysis I Plans for the futureSMEs marketing and communication needs Lead Pay-per-performance models SEM generation (quotations…) Emerging models User generated content Strong growth CRM Groupon like Editorial content Measurable ROI User`s knowledge (Direct marketing) models Vertical BookingTraditional portals"Search & SMEs Advertising needsFind" and (marketing & communication) Online content Offline contentonline (flyers, posters) (website, video…)marketing Local media Classified (press, radio, outdoor) Online Events, Classical media. Directories exhibition Poor growth. Print Directories shows Not performance-based Communication and offline medias 66
  • 65. Part Edi Bähler I Market Analysis I Plans for the futureMarkets adjacent to classical search & find veryfragmented Total Swiss local advertising market Zoom on Online Business models (excl. online press) CHF m, 2010 , CHF m, 2010 , 625 85 260 90 890 110 100 290 110 100 290 gate24.ch Others 14 15 Others 80 Others 320 search.ch Others 45 16 Booking 3 CCO 19 Groupon 10 Couponing Deindeal 15 Google Others 205 16 Renovero 14 Lead Generation Blick 140 “SC Directories” 110 Maturity PG exc. local 10 Website creation² & content NZZ 190 120 Energy 10 Online APG 52 Local.ch Local ch content 54 PG exc. local 10 Various SF1, SF2, Sat1, ProSieben 15 immoscout24.ch 10 Goldbach Minuten etc. 240 20 jobscout24.ch 10 Media 25 swissfriends.ch 10 Classifieds Various Goldbach media 30 homegate.ch 20 g Press Online Direct TV, radio, Printed Search & Marketing1 outdoor (Print&Online) Directories Find Source : Publisuisse Mediaguide, Swisscom, OC&C analysis Local.ch Tamedia Ringier g Publigroupe g Other1. We assumed that half of the Direct Marketing is local2. Website creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it in a given year, average annual spend: CHF 3.500;3. Emerging segment in 2010, estimated at CHF 1m 67
  • 66. Part Edi Bähler I Market Analysis I Plans for the futureActive matchmaking & expansion to lead generation to be found to be chosen to sell customers t perspective MATCHMAKER users perspective to find to choose to buy68
  • 67. Part Edi Bähler I Market Analysis I Plans for the futureMarkets with distinct growth potential Total Swiss local advertising market Zoom on Online Business models (excl. online press) CHF m, 2010 CHF m, 2010 625 85 260 90 890 110 100 290 110 100 290 gate24.ch Others 14 15 Others 80 Others 320 search.ch Others 45 16 Booking 3 CCO 19 Groupon 10 p -5% to -15% Couponing C i Deindeal 15 Google +30% to Others 205 16 Renovero 14 Lead +20% Generation Blick 140 “SC Directories” -20% to -20% to 110 Maturity -10% PG exc. local -10% 10 Website creation² & content NZZ 190 +10% to 120 Energy 10 +20% Online APG 52 Local.ch content 54 +10% to PG exc. local 10 Various +20% SF1, SF2 Sat1G ldb 20 Minuten etc. 240 SF1 SF2, Sat1, ProSieben 15 immoscout24.ch immoscout24 ch 10 Goldbach h jobscout24.ch 10 Media 25 swissfriends.ch 10 Classifieds Various Goldbach media 30 homegate.ch 20 Press Online Direct TV, radio, Printed Search & Marketing1 outdoor (Print&Online) Directories Find Local.ch Tamedia Ringier Publigroupe Other Source : Publisuisse Mediaguide, Swisscom, OC&C analysis1. We assumed that half of the Direct Marketing is local2.2 Website creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it in a given year, average annual spend: CHF 3.500; one year 3 500;3. Emerging segment in 2010, estimated at CHF 1m 69
  • 68. Part Edi Bähler I Market Analysis I Plans for the futureKey drivers for successful matchmaking strategyimplementation Leader in audience Strong monetization engine g g Content Product optimisation Print, Online, Mobile – Local Editorial Content – User Generated Content Diversification to new business models Managed audience Print, Online, Mobile Sales power & efficiency: – Multichannel Brand strength – CRM1 – S Segmentation t ti Operational excellence Matchmaking data People and culture Processes User insights Harmonised employer conditions IT Deeper advertiser information D d ti i f ti Strategic Human Resource Print cost structure management 1 Customer relationship management70
  • 69. Part Edi Bähler I Market Analysis I Plans for the futureImprovements on all key performance indicators 145 142 1 Total revenue improves again after REVENUE E some difficulties during financial 140 137 137 crisis and initial transformation 135 133 process from offline to online. 131 Growth expected to continue going 130 forward. 70 62 1 60 54 Steady growth in online (local.ch & ONLINE 44 home.ch) at a CAGR rate of 16%. ) 50 42 Importance of total online revenue to 40 34 continue to grow at a rapid rate. 30 50 48.0 Profitability to increase again, due to 40 30.0 1 new set-up of organisation under EBIT3 38.0 27.7 30 one leadership. Further operational 31.8 improvements anticipated going 20 forward. 2007 2 2008 2 2009 2010 2011 1 Forecast 2 EBIT non restated figs 3 local ch & home ch only local.ch home.ch71
  • 70. Part Edi Bähler I Market Analysis I Plans for the futureStrong #2 behind Google Nielsen Unique audience1 20112 3.5 3.0 2.5 25 2.0 1.5 1.0 0.5 00 0.0 Netmetrix Unique clients3 2011 50% 30% 6% 11% % 9% 7% 8% 5% 7% 8% 4% 2% 10% -10% -30% -50% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 Nielsen/ Netratings 2 Average Unique Audience from January 2011 until October 2011 3 Source: Netmetrix / Unique clients72
  • 71. Part Edi Bähler I Market Analysis I Plans for the futureUncontested #1 in mobile Mobile app performance 2011 7.0 12 user use 6.0 10 times a 10 month2 5.0 38% +38% 8 usage1 4.0 6 3.0 4 2.0 +62% downloads 3 2 1.0 10 +53% apps in 0.0 use1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 On all platforms (iOS,Android,Blackberry,W7,Nokia) Source : amount of searches by mobile devices to our server 2 Average usage per device = usage of mobiles app1 / mobile unique users1 3 Source : Apple / amount of searches by mobile devices to our server73
  • 72. Part Edi Bähler I Market Analysis I Plans for the futureKey Initiatives Total Swiss local advertising market Zoom on Online Business models (excl. online press) CHF m, 2010 CHF m, 2010 625 85 260 90 890 110 100 290 110 100 290 gate24.ch Others 14 15 Others 80 Others 320 green search.ch 16 verticalization Booking 3 CCO 19 Others 45 book Groupon 10 G Couponing Google couponing Deindeal 15 Others 205 16 Renovero 14 Lead Generation Blick 140 “SC Directories” 110 video Maturity PG exc. local UX 10 NZZ 190 design Website creation² & content 360° 120 Energy 10 local Online APG 52 Local.ch content welcome 54 website PG exc. local 10 new mobile Various SF1, SF2, Sat1, ProSieben 15 Goldbach Minuten etc. 240 20 ff i offering immoscout24.ch 10 jobscout24.ch 10 Media 25 swissfriends.ch 10 Classifieds Various Goldbach media 30 home.ch homegate.ch 20 Press Online Direct TV, radio, Printed Search & Marketing1 outdoor (Print&Online) Directories Find Local.ch Tamedia Ringier Publigroupe Other Source : Publisuisse Mediaguide, Swisscom, OC&C analysis1. We assumed that half of the Direct Marketing is local2. Website2 W b it creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it i a given year, average annual spend: CHF 3.500; ti k t i i ti f t i b it t f th ith b it b ild in i l d 3 5003. Emerging segment in 2010, estimated at CHF 1m 74
  • 73. Part Edi Bähler I Market Analysis I Plans for the futureConclusion Improvements on all dimensions… Review: − Online revenue keeps on growing with double digits − Solid online audience on – no 2 search & find after google maps – sustainable ahead of national competition − Uncontested no 1 in mobile search & find1) Nielsen / Netrating2) Available on iOS, Android, Blackberry,W7 Outlook: − Turn search & find into matchmaking − Improve user experience enlarge mobile portfolio experience, − Explore upcoming business models in transaction and lead generation − Increase sales impact & efficiency75
  • 74. DIGITAL & MARKETING SERVICESProfitable growth in Digital Marketing Services ( g g g (DMS) )Renato MartignoniCFO & COO Digital & Marketing Services76
  • 75. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS strategy R l t k t trends d t t77
  • 76. Part Renato Martignoni I DMS performance overview I DMS strategyWith our portfolio we cover both technology- and professionalservices-drivenservices driven businessesDigital & Marketing Services portfolio Digital (marketing) assets Not in focus Technology-oriented business models are highly scalable Technology Technology- Key European markets K E k t oriented penetrated - e.g. 1) Zanox is #1 or #2 in key markets 1) Professional services- oriented business models Professional Namics benefit from scope services- Covered examples: e- p oriented business concept, search engine optimisation, lead Perf. marketing services Not in focus management, etc. Demand-side D d id Supply-side S l id (advertiser) (publisher)1) Zanox subsidiaries 78
  • 77. Part Renato Martignoni I DMS performance overview I DMS strategyStrong operational performanceDMS financial performance recap 2009-2011 [CHF m] 2009 2011 Operating performance is not visible from the 500 reported view because of… 400 Zanox is not consolidated (EBIT incl. 47.5% of Zanox net results) evenue 300 High PPA depreciation (CHF 6.9 m p.a.) Forex and temporary impacts Re 200 218 100 156 147 Revenue 0 CAGR growth of 9% (pro-forma) fuelled by the 1) above market growth of Zanox and Namics Reported Pro-Forma* SVBmedia agency business model is under 20.0 pressure CAGR -18% EBIT 9.7 10.0 EBIT 6.8 Strong contribution of Zanox and Namics 1.8 SVBmedia still delivering positive EBIT despite volume reduction 0.0 2008 2009 2010 2011 Non-recurrent gains in 2009 and non-recurrent forex loss in 20101) P F Pro Forma: PG Share of Revenue/EBIT at constant FX before PPA Sh fR /EBIT t t t b f 79
  • 78. Part Renato Martignoni I DMS performance overview I DMS strategyTop performers Zanox, NamicsDMS financial performance recap 2009-2011 2009 2011 Zanox Revenue 2004 - 2011 (in EUR m) JV formed in 2007, Axel Springer 500 52.5% 52 5% PubliGroupe 47 5% 47.5% 400 CAGR Above market growth achieved 29% 300 organically and via acquisitions 200 CAGR 29% since creation of the joint venture 100 Business model proved able to 0 2004 2005 2006 2007 2008 2009 2010 F2011 grow independently of market crisis Namics Revenue 2004 - 2011 (in CHF m) 14% of continuous organic growth 50 CAGR since 2004 14% 40 Blue chip clients in CH, DE and USA 30 Resilient to the last market 20 downturn 10 2004 2005 2006 2007 2008 2009 2010 F2011 80
  • 79. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS Strategy R l t k t trends d St t81
  • 80. Part Renato Martignoni I DMS performance overview I DMS strategyZanox is Europes leading performance advertising network…Business model (1/3)Source: Company informationS C i f ti 82
  • 81. Part Renato Martignoni I DMS performance overview I DMS strategy…which means connecting >3,000 advertisers with a broad rangeof publishers and generating > 70 m transactions p.a. paBusiness model (2/3) Accommodating relevant publisher g Achieving outstanding results categories (example Germany) CONTENT DISPLAY RETARGET. > 300 k DSL > 1 m flights connections SEARCH E-MAIL E MAIL VOUCHERS SOCIAL MOBILE > 1.5 m fashion > 200 k online items banking leadsSource: Company informationS C i f ti 83
  • 82. Part Renato Martignoni I DMS performance overview I DMS strategy GlossaryZanox stands for sales CPM = Cost per thousand impressions CPC = Cost per clickBusiness model (3/3) CPA = Cost per action C t ti Customer Funnel Awareness Interest Desire Action Reach Visits Sales CPM CPC CPASource: Company informationS C i f ti 84
  • 83. Part Renato Martignoni I DMS performance overview I DMS strategyTop performance attracts top advertisersAdvertisersSource: Company informationS C i f ti 85
  • 84. Part Renato Martignoni I DMS performance overview I DMS strategyZanox takes a leading position in a growing marketCompetitive position and growth Consistent growth in key markets and successful post- merger integrations in UK have made the Zanox Group g g p #1 position in market #1 affiliate network in Europe #2 Successful market entries in Eastern Europe, Turkey and Brazil in 2011 Gain of Benelux market leadership position with M4N acquisition (1H 2011) Large operational investment to accelerate growth and innovation - launch of the first European affiliate marketing marketplace E-commerce forecast Zanox revenue development 2000-2012E [EUR bn] CAGR [EUR m] (main driver for business) 118 Germany 9% 31 UK 10% 81 France 10% 22 48 Netherlands 9% 33 Italy 12% Spain 15% 4 6 3 5 Sweden 11% 2011 2015Source: Company information, FS C i f ti Forrester, W t t Western Europe Online Retail Forecast 2010-2015 E O li R t il F t 2010 2015 86
  • 85. Part Renato Martignoni I DMS performance overview I DMS strategyDriving innovation in the market: introducing next generationof performance advertising marketplaceInnovation Metrics and KPIs on performance of advertisers and publishers Transparency on advertising value chain Self-service search and discovery Comprehensive self promotion capabilities Ability for advertisers to interact with publishers directly Unified U ifi d user experience across Z i Zanox Group including digital windowSource: Company informationS C i f ti 87
  • 86. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS Strategy R l t k t trends d St t88
  • 87. Part Renato Martignoni I DMS performance overview I DMS strategyNamics is a market leading professional services providerCompany profile Namics Company Highlights Client Case / Example Online consultancy specialising in Web content management Product information & e commerce e-commerce Intranet & collaboration Online branding & communication Professional services business model, 23 partners model with minority equity stakes and profit sharing Employing 320 professionals in Switzerland and Germany1) Market leader in Switzerland, top 20 in Germany2) Worldwide online storefront for FREITAG Selected KPIs Full collection range of unique products CAGR growth 04-11 of 14% Tight integration in backend systems and logistics EBIT margin 6%1) November 20112) S Source: htt // http://www.agenturranking.de/ t ki d / 89
  • 88. Part Renato Martignoni I DMS performance overview I DMS strategySVBmedia is an independent media agencyCompany profile SVBmedia Company Highlights Client Case / Example SVBmedia is the largest independent media agency in the Netherlands, focusing on the SME- segment Adverse market developments and technological changes pose several threats, but also opportunities for further growth of profitability After 20 successful years the traditional but eroding fee based business model will be gradually replaced by an hourly based model In 2012, SVBmedia will organize and position itself for the anticipated growth of future demand for high p g g added value, independent media guidance Client H&M wanted maximal attention and audience for the opening of its flagship store in All activities will be concentrated in Amsterdam Amsterdam Selected KPIs: SVBmedia planned and organized all media efforts, p g , − Billing 2010 EUR 60 m up through the light show at the opening (pic.) − Employees 70Source: company informationS i f ti 90
  • 89. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t R l t k t trends and DMS St t d d Strategy91
  • 90. Part Renato Martignoni I DMS performance overview I DMS strategyOnline advertising is growing in all sub-segments and is themost promising segment in the overall advertising sectorOnline advertising growth [EUR bn] Online advertising Advertising sub-segments 2011 EMEA 2011-2015 5.3% Growth 2010-2011 11.5% 11 5% 10.7% 10 7% 11.7% 11 7% 42.2% 42 2% 101.4 101 4 106.8 106 8 112.3 112 3 118.9 118 9 124.7 124 7 19.8 Rest1) 0.4 34.9 1.8 ( (CAGR 3.2%) ) 32.5 33.6 RoEMEA 31.5 30.7 Newspapers 25.2 7.3 (CAGR 2.5%) Western 23.8 23.3 24.5 8.1 81 Europe 22.8 17.6 17 6 TV 41.8 36.8 29.7 (CAGR 6.6%) 32.4 34.7 Online 28.5 28 5 31.5 31 5 advertising 19.8 22.5 25.4 25 4 (CAGR 12.2%) Search Display Affiliate Mobile Total 2011 2012 2013 2014 2015 EMEA 1) Rest = Trade magazines, consumer magazines, directories, out-of-home, radio, video games, and cinema Note: Total is subject to overlap of categories within online advertising and standalone 92 Source: Zanox estimations, PwC 2011 (exchange rate USD/EUR=0.75469)
  • 91. Part Renato Martignoni I DMS performance overview I DMS strategyThree observations about relevant trendsIndustry trends with focus on online advertising - selected Target audience buying makes sense - this is why automated buying through real-time Display goes bidding (RTB) is here to stay real-time RTB has arrived in Europe: in UK, Germany and France it will account for 25%, 20% and 21% of display ad spending in 2015, respectively Mobile advertising finally takes off fuelled by smart phone penetration and mobile Mobile gains broadband - 52% of all phones sold at Swisscom in 2010 were smart phones and there traction are already 936 m 3G subscribers globally Global Gl b l mobile apps & advertising revenue i expected t grow t USD 12 m i 2011 ( bil d ti i is t d to to in (up 17x in the last 3 years) Facebook accounted for ~31% of all display ad impressions in the US (Q1 2011) Social l i S i l claims Facebook just released its new Ad API in August 2011 - more advertising companies to its stake integrate this channel and offer more innovation and scale in social advertising How should advertisers build their strategy?Source: PG research, KPCB (Informa, Gartner), Comscore, IDC, SwisscomS h (I f G t ) C IDC S i 93
  • 92. Part Renato Martignoni I DMS performance overview I DMS strategyWe believe in four key hypotheses which guide our missionDigital & Marketing Services hypotheses and mission statement Guiding Hypotheses MISSION STATEMENT DIGITAL & MARKETING SERVICES 1. The advertising market experiences a shift of power from publishers towards advertisers. Budget decisions are being g g made in a more informed way than before Helping advertisers and agencies 2. In order to influence these decisions, a long- to spend marketing budgets more term oriented player in the ecosystem must effectively by… offer professional services ("performance agency") … focusing on measurable performance and ROI 3. Nevertheless, scalability (and hence, growth potential) needs a technological basis basis. … offering leading professional This is also true in order to stay relevant in a services disintermediation game … employing value adding tools & information 4. Key enabler in the performance ecosystem y p y of tomorrow will be data as basis for technology and services 94
  • 93. Part Renato Martignoni I DMS performance overview I DMS strategyConclusion Our largest investment Zanox Group is taking a leading position in a growing European Market, delivering a strong double digit growth performance The favourable operational performance of Digital Marketing Services is not reflected in the consolidation PubliGroupe is taking action to adjust this in 2012 (Group CFO consolidation. will explain) Digital Marketing Services is preparing new developments and investments capitalising on a favourable industry framework (growth technology innovation) (growth, Digital Marketing Services will continue to focus on execution along strict investment criteria95
  • 94. Q&A SECTION SEARCH & FIND & DMS96
  • 95. FINANCIAL CONSIDERATIONS Solid balance sheet secures strategic freedom Andreas Schmidt Chief Fi Chi f Financial Offi i l Officer97
  • 96. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio 4 PubliGroupe press participations 5 SIX segment & accounting standard change98
  • 97. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Overview & Key messages 3 4Solid balance sheet secures strategic freedom 5 PubliGroupe has responded well to the crisis and structural changes with a firm p p g and selective cost discipline and consistent divestments. The Group enjoys a solid balance sheet and a healthy liquidity. On this basis the Group has the strategic and financial freedom for future investments divestments investments, and restructurings if necessary. The Group holds important p p p participations and real estate assets which we believe p are not fully reflected in todays share price. PubliGroupe has announced plans to divest 4 real estate assets and to return a big part of the proceeds to shareholders shareholders. PubliGroupe will change to the domestic segment and change from IFRS to Swiss Gaap/ FER financial reporting standard in order to increase transparency. 99
  • 98. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio p p 4 PubliGroupe press participations 5 SIX segment & accounting standard change100
  • 99. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Cost cutting 3 4Over 40% cost reduction over the last 4 years 5 CHFm Savings of CHF 142 m achieved over the last Enormous cost and structure 4 years reduction achieved since 2007 Cost cuts achieved with only moderate restructuring expenses Highly differentiated approach with very selective reduction targets and protecting growth areas Consistent reduction in the future and whenever business reality requires further cuts 101
  • 100. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Cost cutting 3 4Selective FTE reduction 5 Reduction of 785 FTEs over the last 4 years Big and sometimes painful reduction efforts since mid-2008 mid 2008 Very selective reduction, build-up of FTEs in growth areas Overall guideline is CHF 150’000 gross margin/employee target If required, further cuts will be implemented 102
  • 101. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Improving the balance sheet 3 4Consistent divestment of non core assets non-core 5 Divestments 2009 - HY2011 & gain in net result (CHFm) 2009 to 2011 divestment of non-core assets such non core as – Real estate: Baden & Lausanne – Non-core press participations: BAZ, Edipresse, others – Emphasis Video – Participations in China Real estate 37% BAZ Medien /Divestment Winterthur 19.9% Edipresse Emphasis Video Real estateof non-core Huashang Interactive Zurich 100% St dt Stadt- Real t t Baden R l estate B d /assets City Media anzeiger Olten Lausanne 2008 2009 2010 2011 103
  • 102. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Improving the balance sheet 3 4Reduced bank debt & strong liquidity on a half-year basis half year 5 CHF m % 6/30/2011 6/30/2010 Balance sheet Total assets -11% 802 898 Shareholders’ equity -4% 401 418 Shareholders’ equity in % of total assets 50% 47% Bank debt (short term) 13 27 Bank debt (long term) 80 93 Total bank debt -23% 93 120 Net short-term Group liquidity short term 24% 79 64 Debt reduced by CHF 72 m (2009 bank debt of CHF 165 m) to CHF 93 m in 2011 Improved short-term liquidity in 2011 (FY2010 with CHF 118 m net liquidity) Strong balance sheet with 50% equity ratio Target: maintain investment capacity of CHF 50 m plus 104
  • 103. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio 4 PubliGroupe press participations 5 SIX segment & accounting standard change105
  • 104. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio 3 47 assets located in Switzerland and in France 5 Bern Lausanne - Mon-Repos Lausanne - Mousquines Lausanne - Toises 1971 | 4490m2 1974 | 3219m2 1980 | 4211m2 1962 | 2047m2 1153 TCHF 1104 TCHF 1206 TCHF 718 TCHF Zürich Delémont Paris Total surface 22072 m2 Total T t l rental t l revenue CHF 7.9m 1982 | 4695m2 1992 | 1045m2 1970 | 365m2 3518 TCHF 168 TCHF 41 TCHF Note: Year of construction | Surface area | Rental revenue per year (TCHF) 106
  • 105. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio - key figures 3 4Surface - occupation of the buildings 5 Bern - Seilerstrasse 8 50% 50% Lausanne - Mon Repos 22 81% 14% 5% Lausanne - Mousquines 4 63% 27% 10% Group Lausanne - Toises 12 100% Third party Vacant Zürich - Neumühlequai 6 100% Delémont - Courroux 6 100% Paris - Victor Hugo 26 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Less than 40% of the total surface is occupied by PubliGroupe 3 buildings are fully rented to external parties: Lausanne - Toises, Zurich and Delémont Paris is entirely occupied by PubliGroupe The other buildings are occupied both by PubliGroupe and external tenants: Bern Lausanne - Bern, Mon-Repos and Lausanne - Mousquines High occupation rate: only 2.8% of the surface is vacant 107
  • 106. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio 3 4Valuation 5 Local GAAP Tax book value IFRS value as W&P Actual value as of as of 31 Dec 10 31-Dec-10 of estimated PubliGroupe 31-Dec-10 31-Dec-10 market value market value (in CHF ths) as of May-11 estimate Bern - Seilerstrasse 8 2678 8308 7907 16720 20000 Lausanne - Mon-Repos 22 16550 14876 9744 17950 22000 Lausanne - Mousquines 4 1898 8657 10043 18640 23000 Lausanne - Toises 12 4400 4975 3296 13200 16000 Zürich - Neumühlequai 6 9443 26118 32927 70890 90000 Delémont - Courroux 6 2234 2234 2530 2300 2300 Paris - Victor Hugo 26 221 221 221 3650 3700 TOTAL 37424 65389 66668 143350 177000 Total real estate portfolio estimated to have a value above CHF 140 m in May 2011 according to independent experts study (W&P) However, expert study calculates with a discount rate that is above todays level. In addition, our last 3 transactions were all executed at 20%+ higher than the expert estimate. We therefore believe that our best estimate of CHF 177 m is a better reflection of the actual market conditions. 108
  • 107. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio 3 4Board decision for divestment and refund to shareholders 5 PubliGroupe p p plans to divest 4 assets in 2012: − 3 Lausanne buildings: Mon-Repos, Mousquines, Toises − Bern building Zurich Neumühlequai assets will remain in portfolio Delémont asset is up for sale and Paris asset is used for Publicitas France Sale proceeds will be used as return for shareholders and partly for debt reduction The method how to best return the proceeds to shareholders is under evaluation 109
  • 108. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio 4 PubliGroupe p p press p participations p 5 SIX segment & accounting standard change110
  • 109. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe press participations 3 4Most valuable press participations amount to CHF 76.5 m 76 5 5 FPH (Freie Presse Holding) % stake Subsidiary of the Swiss publishing house Neue Zürcher Zeitung, combining all major regional press participations of the group 25% St. Galler Tagblatt, Thurgauer g , g Tagblatt, LZ Medien are only some of the titles in FPH portfolio SNP (Société Neuchâteloise de Presse) Part of the Hersant Group and one of the prominent newspaper publishers in 29% French speaking Switzerland Key media: LExpress and LImpartial Südostschweiz Presse AG Subsidiary of the Südostschweiz Medien Group in charge of printing well known titles such as: 20% Südostschweiz Graubünden, Bündner Tagblatt, Bündner Woche 111
  • 110. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe press participations 3 4Summary & outlook 5Assets in associates:CHF 76 5 m of which CHF 70 m in Freie Presse Holding (FPH) 76.5Other participation assets (in marketable & AFS securities):CHF 19 m of which CHF 14 Mio in TamediaPosition planned for further reductionResults of participation (1st sem. 2011):EBIT: CHF 2.3 m, mainly from FPHFinancial result: CHF 0.4 m, volatile result because of TAM stock price Outlook PubliGroupe has largely reduced its press participations over the last years PubliGroupe is in minority situation and currently not actively pursuing further reductions. However, we are open to review the situation when appropriate We believe that the market does not fully reflect the value of these assets112
  • 111. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio 4 PubliGroupe p p press p participations p 5 SIX segment & accounting standard change113
  • 112. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Change of reporting standard and of SIX segment 3 4 5 PubliGroupe intends to implement in 1st semester 2012: Change of listing from SIX main to SIX domestic segment => in order to allow: Change of PubliGroupe reporting standard from IFRS to Swiss Gaap/FER Advantages for PubliGroupe Higher transparency of PubliGroupes partnerships and joint ventures PubliGroupe s Higher transparency of the Groups real performance and strategic progress. Furthermore, favourable transparency rules of IFRS such as segment reporting and others will be maintained while applying Swiss Gaap/ FER. Complexity and cost reduction: Swiss Gaap/FER is a more stable and less detailed standard than IFRS (e.g. pension accounting, financial instruments, employer foundation, others). Disadvantages for PubliGroupe Depreciation of goodwill and intangibles in Swiss Gaap/FER will ultimately result in a decrease of consolidated shareholders’ equity.114
  • 113. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Standard change - Main accounting changes | 1/2 3 4IFRS P/L versus Swiss GAAP FER P/L 5 Company p y IFRS P/L Swiss GAAP P/L with proportional method LTV Gelbe Seiten AG 1) All P/L lines presented at 100% 1) All P/L lines presented at 51% 2) Minus one line "non-controlling 2) NO line "non-controlling interests" interests" at - 49% Swisscom Directories One line at 49 % in the EBIT All P/L lines presented at 49% AG (share in result of associates) and local.ch AG local ch Zanox AG One line at 47.5 % in the EBIT All P/L lines presented at 47.5% ( (share in result of associates) )115
  • 114. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Standard change - main accounting changes | 2/2 3 4Goodwill accounting + Capitalisation of sales force costs 5 Goodwill IFRS Swiss GAAP FER Accounting Balance Sheet Purchase price allocation process to No PPA process for intangibles. intangibles and residual goodwill Offset of acquired goodwill with equity at the date of the acquisition, with a q , theoretical calculation of amortization over 5 years in the notes Profit and Losses Depreciation of intangibles No yearly amortisation, but goodwill No straight line amortisation of goodwill considered in the profit and losses at the time of the exit from the consolidation scope Capitalisation of sales IFRS Swiss GAAP FER force costs Search & Find Sales commissions incremental to the Sales commissions are recognised contacts acquisition are recognised as i ii i d directly through the P/L di l h h h intangible assets and depreciated when revenue is realised (over three years) 116
  • 115. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Change of reporting standard and of SIX segment 3 4Timing 5 PubliGroupe intends to implement segment and standard change G in 1st semester 2012: Announcement of intended change: Dec 1st Presentation of new accounting d t il P t ti f ti details: March 2012 Planned change of SIX segment: g g May 2012 First financial report in Swiss Gaap/FER: August 2012117
  • 116. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Change of SIX segment 3 4Companies listed according to domestic standard 5 In total, 50 companies (all Swiss) are listed according to the domestic standard at SIX Swiss Exchange Company Index member Industry Sector Accounting rules Market cap (in CHFm) 1 Berner Kantonalbank AS SPI / SPIEX Banks Bankengesetz 2,323 2 METALL ZUG AG SPI / SPIEX Cyclical Consumer Products Swiss GAAP FER 1,368 (2) 3 Meyer Burger Technology AG SPI / SPIEX / SMIM / SMIEX Industrial Goods IFRS 1,185 (1) 4 Emmi AG SPI / SPIEX Food & Beverages Swiss GAAP FER 1,059 5 Conzzeta AG SPI / SPIEX Industrial Goods Swiss GAAP FER 897 6 Daetwyler Holding SPI / SPIEX Industrial Goods Swiss GAAP FER 805 7 Vaudoise Assurances Holding SA SPI / SPIEX Insurance IFRS 780 8 Bell Holding AG SPI / SPIEX Food & Beverages Swiss GAAP FER 720 9 Vetropack Holding AG SPI / SPIEX Applied Resources Swiss GAAP FER 611 TOP 10 Zehnder Group AG (3) SPI / SPIEX Industrial Goods Swiss GAAP FER 607 11 Bank Linth LLB AG SPI / SPIEX Banks Bankengesetz g 358 20 12 Bossard SPI / SPIEX Industrial Goods Swiss GAAP FER 348 13 CPH Chemie + Papier Holding AG SPI / SPIEX Applied Resources Swiss GAAP FER 345 14 Jungfraubahn Holding AG SPI / SPIEX Transportation Swiss GAAP FER 321 15 Hypothekarbank Lenzburg AG SPI / SPIEX Banks Bankengesetz 306 16 Huegli SPI / SPIEX Food & Beverages Swiss GAAP FER 281 (3) 17 Orell Füssli Holding AG SPI / SPIEX Industrial services IFRS 220 18 IVF HARTMANN Holding AG SPI / SPIEX Healthcare Services Swiss GAAP FER 212 19 Bank CA St.Gallen AG SPI / SPIEX Banks Bankengesetz 202 20 Gurit Holding AG SPI / SPIEX Chemicals Swiss GAAP FER 201 Source: Credit Suisse Note: SPI = Swiss Performance Index; SPIEX = SPI Extra; SMIM = SMI Mid; SMIEX = SMI Expanded (1) IPO in 2004 (3) Change of regulatory standard in 2010/2011 (2) IPO in 2006 (3) Ch f SIX domestic standard includes as well international active companies, such as Daetwyler Holding, Emmi, Metall Zug and othersSource: Credit Suisse 118
  • 117. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Change of reporting standard and of SIX segment 3 4Conclusions 5 Higher transparency: The proportional consolidation would replace the existing complicated consolidation structures ( (combined f consolidation with minority part and full equity consolidation) and would give a more realistic in view of the P+S partnership and the Zanox JV. Complexity & cost reduction: IFRS continues to increase its complexity and Swiss GAAP FER has become the more appropriate standard for a mid-sized company such as PubliGroupe. Impact of accounting: The major accounting impact will be the proportional consolidation of local.ch and Zanox. In addition, the change of the accounting treatment of acquisitions (depreciation of goodwill at acquisition) will impact balance sheet and P&L. Several other companies have done the move: Several companies have previously made this shift from IFRS to Swiss GAAP FER without any adverse external effect. The SIX domestic segment is well respected by the stock market .119
  • 118. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard changeOverall conclusions PubliGroupe has demonstrated cost and balance sheet focus and will continue to do so The balance sheet includes important and valuable participations and real estate assets which are not fully reflected in todays share price today s By changing the financial reporting standard in 2012, PubliGroupe wants to achieve a higher transparency for local ch and Zanox and wants to reduce complexity local.ch The board has decided to divest 4 real estate assets and to return big parts of the proceeds to shareholders120
  • 119. CONCLUDING REMARKSHans-Peter RohnerH P t R hCEO & Chairman of the Board121
  • 120. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardPubliGroupe - the way forward Market perspective: - local.ch: leading Swiss online, mobile and print search portal - Zanox: the leading performance advertising network in Europe Market - Publicitas: an established service provider and sales platform, delivering solutions to more than 400 000 customers in Switzerland 400,000 and selected international markets Employee perspective: - A Group in transformation; creation of new attractive jobs in the digital arena. - Reduced workforce, higher profitability Investors Employees - Upscaling of know how & education level; know-how more performance-oriented renumeration Shareholder perspective: - A Group with reduced complexity with the objective to optimise marketing spend for its customers - Creation of sustainable value in defined core business segments - Continued divestiture of non-core assets122
  • 121. Q&A123
  • 122. Investors’ Day 2011 yZurich, 1 December 2011124