Publi groupe 2010 results presentation e

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Presentation of PubliGroupe 2010 results, finding place on 18th of March in Zurich Switzerland.

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Publi groupe 2010 results presentation e

  1. 1. FINANCIAL RESULTS 2010 PubliGroupe confirms its return to profitability: net profit 2010 of CHF 42.6 million – Resumption of dividend payment1
  2. 2. Overview presentation order 1. Hans-Peter Rohner: Overview of 2010 figures & main developments CEO & Chairman of the Board 2. Andreas Schmidt: Key financials group Chief Financial Officer 3. Segment heads: Segment update (financial results & key initiatives) Beat Röschlin: Update Media Sales Head of Media Sales Edi Bähler: Update Search & Find CEO local ch local.ch Thomas Kaiser: Update Digital & Marketing Services Deputy Group CEO & CEO Digital & Marketing Services 4. Hans-Peter Rohner: Conclusion & outlook 20112
  3. 3. OVERVIEW 2010 FIGURES Turnaround accomplished All segments profitable accomplished. Hans-Peter Rohner CEO & Chairman of the Board3
  4. 4. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlook2010 group resultsWell positioned for the future Positive trend of half-year results confirmed Sales and gross margin in CHF m 2009 2010 Turnaround accomplished: 2000 1609.1 – Accelerated migration towards "digital company“ 1500 1474.2 – Media Sales profitable ahead of schedule – Financially stronger with significantly reduced debt 1000 and stronger investment capacity 500 362.1 345.3 Strong performance across all segments: 0 – Media Sales: successful execution of new Net sales Gross margin g business model – Search & Find with new organisational set-up EBIT and net profit, in CHF m that will strengthen future profitability 2009 2010 – Digital & Marketing Services (DMS): now the 60 European leader in affiliate marketing with Zanox 42.6 40 32.6 Group; Namics enhances leading position in e-business consulting in Switzerland 20 0 Dividend payment of CHF 6 proposed to General -2.9 Meeting of 3 May 2011, pay-out ratio of 33% -20 -20.3 -40 EBIT Net profit 4
  5. 5. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlook2010 business segment summaryMedia Sales: turnaround move towards digital company turnaround, Turnaround accomplished ahead of schedule EBIT, in CHF m per segment Print CH: New business model implemented with new contract structure; all major contracts re- j EBIT 2009 EBIT 2010 negotiated and signed; new retail B2C platform Media Sales DMS pro forma 2009* DMS pro forma 2010* publicitas.ch, new sales strategy for media intermediation 40 Electronic CH: turnaround in cinema business; loss 31.8 g of traditional TV contracts leads to launch of digital 30 27.7 M broadcasting initiatives. International: more focus on key markets/growth 20 and excellent results in Asia, Americas back to 13.414.8 profit/Europe with positive trend 10 8 Losses cut in h lf vs. previous year L t i half i 0.5 1.8 18 CP Discontinued as a separate segment 0 -2.8 reported pro forma -10 -5.7 Partnership with Swisscom adjusted to increase& Find rch efficiency going forwardSear -20 New local.ch (rebranding) with stronger online focus -30 -28.6 Successful Zanox (performance marketing growing market) k t) -40 Media Custom Search Digital & DMS Well positioned to offer professional services (i.e. Sales Publishing & Find Marketing full-service performance agency) Services * Pro forma EBIT = eliminating one time gain of CHF 4.0 m in 2009, PG HQ costs allocated Strong operational performance not reflected in amortization of intangible assets and interest and taxes for PG’s IFRS share to the result of Zanox group g p 5
  6. 6. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookStatus of strategic initiativesReorganisation and cost reduction largely accomplished Achieved cost savings of CHF 124.5 m over 3 years – CHF -48.5 m in Media Sales and HQ Corporate in 2010 alone 48.5 Headcount reduction by 241 FTE at Media Sales and HQ Corporate ( (12 months) )Reorgani-sation and CHF -22m CHF -55m CHF -48.5mcostreduction 2007 2008 2009 2010 6
  7. 7. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookStatus of strategic initiatives Level of AccomplishmentDivestment of non core assets mostly completed non-core 2010 divestment of non-core assets – Real estate: Baden and Lausanne – Non-core holdings of publishing houses: BAZ, Edipresse Debt reduced by CHF 72 m to CHF 93 m Strong balance sheet with 47.7% equity ratio Target: maintain investment capacity of CHF 50 m plus Real estate 37% BAZ Medien /Divestment Winterthur 19.9% Edipresse Real estateof non-core Zurichassets t 100% Stadt- Stadt Real estate Baden / anzeiger Olten Lausanne 2007 2008 2009 2010 7
  8. 8. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookStatus of strategic initiatives OngoingContinuing investment in growth markets Performance Marketing: – Build the leading European online affiliate advertising group together with Axel Springer – Acquisition of Buy at in March 2010 leads to European market leadership Buy.at – Leadership with CHF 504 m sales – Build a comprehensive offering in digital marketing on the Swiss market – Repositioning of web2com – Acquisition of Instanz in May 2010 complements the web2com Namics and Zanox web2com, performance marketing offering Local Search Marketing: – Build the number one local search platform in Switzerland together with Swisscom – New setup of partnership with Swisscom to boost online services and to gain synergies – Promising market entry of new national real estate online portal home.chInvestmentsin growthmarkets 2007 2008 2009 2010 8
  9. 9. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookStatus of strategic initiatives OngoingGrowing importance of online businesses Online revenue consolidated in PubliGroupe Online Revenues, numbers: +24% to CHF 140.1 m in CHF m PG incl. participations Online revenue including participations: +33% to CHF 657 m Participations PG PubliGroupe expands its position as a key 800 player in the online market in Switzerland and with Axel Springer (Zanox) in Western 700 657 Europe 600 493 500 447 400 517 300 380 356 200 100 113 140 91 0 2008 2009 2010 Total revenue Total revenue Total revenue 2008: 2009: 2010: CHF 2’371 m CHF 1’898 m CHF 1’906 m (online 19%) (online 26%) (online 34%) 9
  10. 10. KEY FINANCIALS GROUP Well capitalised solid cash flow capitalised, Andreas Schmidt Chief Financial Offi Chi f Fi i l Officer10
  11. 11. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookP&L GroupBack in solid black numbers Change % 2010 2009 CHF m restated Revenue -8.4% 1474.2 1609.1 Gross margin g -4.6% 345.3 362.1 Expenses -10.7% -300.5 -336.5 EBITDA 74.6% 44.8 25.6 EBIT - 32.6 -2.9 Financial result - 23.9 -3.3 Taxes - -7.2 72 -3.1 31 Minority interests -39.0% -6.7 -11.0 Net Result - 42.6 42 6 -20 3 20.3 11
  12. 12. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookRestatement for activated sales costLittle impact on results 2009 restated 2009 reported 19.3.2010 Restatement impact Shareholders equity 412.8 416.8 -4.0 Personnel expenses -272.2 -289.9 17.7 Depreciation -29.1 -13.0 -16.1 EBIT -2 9 2.9 -4 5 4.5 1.6 16 Net result attributable to PG shareholders -20.3 -20.9 0.6 Cash flow from operating activities 6.3 -8.8 15.0 Cash flow from investing activities -7.7 -7 7 7.3 73 -15.0 -15 0 Since the adoption of IFRS, commissions paid to the sales statements. Therefore personnel expenses are reduced by agents of LTV Gelbe Seiten AG for the acquisition of three- the amount of commissions capitalised in the current year, year contracts with customers (subscriber acquisition cost) which increases EBITDA, while depreciation is increased by were recognised as prepaid expenses and charged to the current year depreciation of the intangible asset. As both income statement at publication date. Until 2006, the sales amounts nearly offset each other, the total impact on EBIT is agents were fully paid on a variable commission basis basis. not significant. 2009 figures have been restated accordingly significant accordingly. Since 2007, compensation has also included a fixed part. The impacts on the restated total balance sheet, total equity Under IFRS only the variable part should be recognised and result are not significant. as an intangible asset and not as prepaid expenses. This accounting error has been corrected in the 2010 financial 12
  13. 13. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookExtraordinary items 2010Important gains from divestments CHFm Net Result 2010 - Nominal 42.6 42 6 Divestments 28.4 Impairments -2.0 -2 0 Restructuring -8.1 Others -2.3 Total non recurring elements 16.0 Net Result 2010 - Comparable p 26.6 Balance of non recurring items is a net profit of CHF 16 m Divestments include participations (Edipresse, Baz, etc) and real estate assets (Baden and Lausanne) (Edipresse Baz Impairments: CHF 1 m in Radiotele, CHF 0.8 m in Cinecom & Media and CHF 0.2 m in Bégécom Restructuring costs: CHF 4 m in Search & Find (related to Number 1 project), CHF 2.6 m in Media Sales and CHF 1.6 m in Custom Publishing 13
  14. 14. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookNet result - causes of changePerformance improved thanks to reduced expenses NET RESULT 2009 -20.3 -20.3 One Time Events 2009 5.4 COMPARABLE 2009 -14.9 -14.9 Gross margin 17.8 17.8 Expenses 40.1 40.1 Depreciation 3.3 3.3 Associated 10.9 10.9 Financial result 6.0 6.0 Taxes 3.8 Minority interests 2.8 COMPARABLE 2010 26.6 26.6 One Time Events 2010 16.0 16.0 16 0 NET RESULT 2010 42.6 42.6 CHF m -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 40 45 14
  15. 15. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookCost savings at Media Sales & HQ CorporateHuge cost reductions since 2007 CHF m Decisive cost reduction CHF -124.5 m 350 321 efforts in Media Sales and 301 Corporate HQ since mid- 300 2008 245 Expenses have decreased 250 by CHF 124.5 m or 38.7% 197 since 2007 200 150 100 50 - 2007 2008 2009 2010 Media Sales HQ Corporate15
  16. 16. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookNumber of employeesWorkforce reduced by 24% during the crisis FTE -743 FTE 3 200 3200 3000 Significant and constant FTE decrease since 2800 September 2008 This represents a 743 3093 FTE or 24% decrease 2600 3003 since September 2008 2798 2400 2618 2377 2349 2200 2008.09 2008.12 2009.06 2009.12 2010.06 2010.12 16
  17. 17. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookNet financial resultReduced interest expenses and gains on Edipresse and Tamedia CHF m 2010 2009 Result on loans and receivables 1.4 1.8 Result on marketable securities 7.7 4.2 Result on available-for-sale securities 17.0 -3.4 Result on uncommitted net assets of employers foundations - 1.4 Changes in fair value of contingent consideration 1.6 - Interest expenses -3.7 -6.3 Net currency exchange differences -0.1 -1.0 Total 23.9 -3.3 17
  18. 18. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookCash flow statementOperational and investment cash flows allow for big debt reduction CHF m Change 2010 2009 Cash and cash equivalents as of 1 January - 28.7% 58.0 81.4 Cash flows from operating activities 29.6 29 6 6.3 63 Cash flows from investing activities 97.0 (7.7) Cash flows from financing activities (78.7) (22.1) Effect of exchange rates (3.3) 0.1 Cash and cash equivalents as of 31 December + 77.0% 102.6 58.0 18
  19. 19. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookGroup balance sheetSolid balance sheet and solid net liquidity CHF m % 2010 2009 Current assets C t t -16.9% 16 9% 416.7 416 7 501.4 501 4 Non-current assets -1.2% 444.2 449.5 Total assets -9.5% 860.9 950.9 Current liabilities -20.1% 20 1% 297.9 297 9 372.9 372 9 Non-current liabilities -4.9% 118.8 124.9 Equity, shareholders of PubliGroupe Ltd. -0.5% 410.8 412.8 Non-controlling interests -17.3% 33.4 40.3 Total liabilities and equity -9.5% 860.9 950.9 Equity in % of assets 47.7% 43.4% Net liquidity 118 59 Bank debt 93 165 The groups balance sheet remains solid Reduction of total assets by CHF 90 m CHF 32 m reduction owing to negative exchange rate impact; slight reduction in shareholder equity 19
  20. 20. MEDIA SALES Turnaround accomplished ahead of plan Beat Röschlin Head of Media Sales20
  21. 21. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookMedia SalesTurnaround accomplished ahead of plan Break-even at the operational level in 2010 with Sales, in CHF m an EBITDA of CHF 6.5 m and EBIT of CHF 0.5 m 1500 1 292.3 1292 3 End of exclusive cooperation agreements, 1173.8 especially at Edipresse, led to 14.3% reduction in 1000 volume. On a like-for-like basis, reduction only 1.9%, in line with general market trend g 500 Improved results for electronic media – especially cinema advertising 0 Strong recovery of international markets (+1.4%), 2009 2010 which was led by Asia (+16 1%) and America (+16.1%) (+12.8%), and the turnaround in press advertising in Switzerland Gross margin and EBIT, in CHF m Far-reaching reorganisation, which brought total 2009 2010 240 199.4 199 4 cost savings of CHF 116 m and a 677 FTE 186.2 200 reduction in headcount between 2007 and 2010, 160 is now complete 120 Partnerships renewed with all large Swiss 80 publishers on th b i of new b i bli h the basis f business model. d l 40 0.5 Media Sales targets to outperform the market and 0 increase its profitability in future -40 -28.6 Gross Margin EBIT 21
  22. 22. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookMedia SalesNew contracts signed with all major Swiss media New contracts based on new service offerings and a transaction-oriented pricing model, leading to a complete media portfolio P Commission (CHF) New model N d l Old model Ad price (CHF) Transaction-based pricing model with minimum commission 22
  23. 23. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookMedia SalesLaunch of new digital B2C retail platforms for ad booking State-of-the-art, self-service booking platform for private and SME customers Comprehensive online and print product C h i li d i t d t portfolio Market launch in July 2010 High g g growth rates on all measures: visits, , number of orders, revenue, value per order Marketing ongoing in order to increase brand recognition and positioning 23
  24. 24. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookMedia SalesLaunch of B2B platform for complex campaign management Integrated campaign management, g p g g , covering the whole advertisement value chain from planning to reporting Tailored to the needs of large accounts and media agencies Replacing several stand-alone tools with a new and comprehensive platform Unparalleled solution and a clear USP in a hi hl competitive market highly titi k t24
  25. 25. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookMedia SalesStrong international online revenue growth CHF m 2009 2010 Accelerated growth rates in international 20 +37% operations 14.7 15 New dedicated +30% transversal digital unit to 10.7 +10% 10 9.0 develop and implement 6.5 6.9 digital products 5.9 5 0 Europe Asia Americas 25
  26. 26. SEARCH & FIND Strong increase in online revenue Edi Bähler CEO local.ch26
  27. 27. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & OutlookSearch & Find -Investments undertaking for future Online services grow by 24%, accounting for 33% Sales, in CHF m of advertising revenue 160 130.8 136.8 Print products in CH decline by -10% 140 120 Segment revenue grows by 4.6% 100 80 Segment gross margin declines -2.9% to 60 40 CHF 98 m 20 0 EBIT declines by CHF -4.3 m to CHF 27.7 m, 2009 2010 influenced b th l i fl d by the launch of new products h f d t Launch of national real estate search portal : Gross Margin and EBIT, in CHF m www.home.ch 120 101.0 98.0 101 0 98 0 2009 2010 Profitability to increase in the future with new setup 100 of the partnership with Swisscom 80 60 Acceleration of development in online services + 31.8 27.7 40 cost- & growth-synergies 20 0 Gross Margin EBIT 27
  28. 28. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & OutlookSearch & Find -Strong increase of online revenue Forecast of advertising expenditures in professional directories CH: CHF m1), 2010-2014F ) CAGR 2010-2014 144 142 150 161 174 +4,8% p.a Increased online revenue from CHF Digital 23% 29% 35% 43.5 m to CHF 53.8 m 43% +27,1% p.a. 49% Achieved #2 position after Google maps2) Print 77% 71% 65% Uncontested #1 in 57% -5 6% p a 5,6% p.a. Mobile sea c & find ob e search d 51% 2010 2011 2012 2013 2014 1) Original data given in USD Source: PWC, OC&C analysis2) Nielsen / N t ti Ni l Netrating 28
  29. 29. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & OutlookSearch & Find –Strongly developed broad screen & mobile Significantly increased broad screen Online revenue (local.ch + home.ch) CHF m 60 53.8 revenue by 24% 43.5 40 Online orders intake exceeds print 20 +24% 0 Achieved and successfully defended 2009 2010 #2 position after Google maps(1) Average Unique Users 2010 4 Mio. Uncontested #1 in Mobile search & find 3 Mio. (available on iOS Android Blackberry,W7) iOS, Android, Blackberry W7) 2 Mio. 1 Mio. #4 of most downloaded apps of all times on iPhone/iPad (600k”+” downloads) 29 (1) Nielsen / Netratings
  30. 30. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & OutlookSearch & Find –Synergy and Transition CONCENTRATE individual brand value Swisscom Directories into local.ch LTV Yellow Pages Y ll P Streamline Organization − One Management Team (Exec Board) − Restructure E2E processes R t t − Consolidate IT-Systems Remove redundant capacity in admin Org chart local.ch Org chart LTV − Org Chart local.ch Current organisation Org Chart LTV Current organisation Rough no. of actual headcount (not FTE) Rough no. of actual headcount (not FTE) CEO CEO Assistant 1 Assistant / 1 CFO 1 Head of Back Office Project Management and 1 Product Management Print 3 Business Development Senior Project Manager / Junior Project Manager 1 1 Head of Recruiting Content Management 1 Communication 3 Engineering 19 Operations Project Management 3 Product Management 10 Marketing Marketing1 1 Field Sales Sales 320 Logistics Media Production Media Prod. – IT & Business Engineering Application Engineering 15 Finance and Controlling Hauptbuchhaltung 2 ment HR Projects & HR-develop- 2 CEO Operations “Book Paging” 5 Tele Sales 7 Business Engineering 12 Kreditoren / Debitoren 3 Wage Accounting / Admin 3 Media Prod. – “Ad manuf acturing” 15 System Engineering and Sales Support 9 Network Engineering 6 Controlling and Projects 1 Recruiting 2 3 Communication1 1 Dispo and AVOR (Arbeits- Administration 22 vorbereitung) Sales Controlling 1 PMO and Controlling 2 Internal Tasks 2 Customer Care 13 Assistant 1 Adserving 2 Increase sales impact & efficiency Trafficer 1 2nd level online customer care exists as Finance a non formal unit (c. 2 person) Reception 2 1. Positions are currently vacant Quelle: local.ch; OC&C analysis Quelle: LTV HR department; OC&C analysis 18 19 © local.ch 2010 © local.ch 2010 Com HR − Field Sales Org chart Swisscom Directories Org Chart Swisscom Directories Rough no. of actual headcount (not FTE) CEO Current organisation Org Chart home.ch Org chart home.ch Rough no. of actual headcount (not FTE) Current organisation Communication 1 HR 3 Sales & Classical Electronic Data & Information CEO Marketing Media Media Processes Technology Telesales 1 Products Content Sales & Marketing IT Finance − Product M anagement Prod. Management 3 Data Management 28 Tele Sales 63 IT architect 1 Controlling 2 Directory Media Prod. Management Corporate Sales 2 Content Management 6 15 Application Management 8 Financial Accounts 4 Contact Mgmt Service and Training Sales 4 Marketing 3 Operations 5 Campaign Monitoring and Print Production 5 Residential 11 3 Order Management IT 5 Purchasing and Logistic 3 Sales Steering Development & Research 1 Future Services 1 Promotion Management 3 Development IT 14 Housing 1 Special Services KAM 3 Test Management IT 10 Online Services (ONS) 6 Operation Management Delivery IT 5 Business Customer 8 PC-Support 3 Care (BCS) Management Support 3 After Sales 10 Server Operation 10 Key Account Directory System 11 − Quelle: SD HR department; OC&C analysis Quelle: Home.ch; OC&C analysis 20 21 © local.ch 2010 © local.ch 2010 30
  31. 31. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & OutlookSearch & Find -Further boosting revenue Leverage existing customer potential Reduce print revenue erosion against the market trend of -10% p.a. k t t d f 10% Online: revamp existing products improve inventory management launch new products: - 360° New Broad screen design Improved user experience by simplification Leverage d L downloaded A f ads l d d App for d products: - Mobile First Verticals/Classifieds: V ti l /Cl ifi d Leverage synergies within PubliGroupe (Publicitas) 31
  32. 32. DIGITAL & MARKETING SERVICES Strong growth in Online Performance Marketing and related professional services Thomas Kaiser Deputy Group CEO & CEO Digital & Marketing Services32
  33. 33. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookDigital & Marketing ServicesStrong operational performance Digital & Marketing Services continued to expand DMS Sales, in CHF m "online performance marketing" activities with two 175 162.8 -9.9% SVB 146.7 146 acquisitions Buy.at (UK) and Instanz (CH) 150 Digital CH 125 116.4 The Zanox group is the #1 European Affiliate 100 95.9 Network thanks to continuous growth and to the 75 50 successful integration of the Affiliate Window/Buy.at 25 46.4 50.8 Network (UK). Sales reached CHF 504 m 0 2009 2010 DMS sales declined by -9.9% (-3.6% without Note: Zanox Group not included p currency impact) due to weaker billings in the Dutch market (SVB Media) DMS gross margin and EBIT, in CHF m 60 2009 50.7 52.3 Gross profit +3% was supported by expansion at p pp y p 2010 50 Namics and improved margins at SVBmedia 40 DMS pro Forma EBIT* 30 Pro-forma EBIT growth + 11% (+22% without 20 + 11 % pro 13.4 14.8 forma currency impact) y p ) 10 vs. -77% 0 reported Gross Margin EBIT 33
  34. 34. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookDigital & Marketing ServicesZanox Group achieves market leadership position in Europe Consistent growth in key markets and successful post-merger integrations in UK have made the Revenue € 368m Zanox Group #1 Affiliate Network in Europe +57% vs. 2009 Clear leadership in the UK Market following successful integration of Buy.at and Affiliate Window Buy at EBITDA € 21 8m 21.8m (March 2010) +12.8% vs. 2009 Transition to a new international and experienced management team (P. Justus CEO, D. Keller CTO, C. Kleinsorge CSO) Zanox Group vs. other CPA/Affiliate Networks #1 Large operational investment in 2010-2011 to accelerate growth and innovation #1 #1 #2 #2 34
  35. 35. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookDigital & Marketing ServicesCapitalising on market leadership position in Europe “straight to performance” Operating in an attractive market (Internet O ti i tt ti k t (I t t Advertising Marketing in Western Europe expected to grow at 10.8% CAGR 2010-2014) Advertisers continue to shift marketing budgets into high transparency, high performance channels Zanox Group well positioned as the leading European Performance Advertising Network p g generating leads and sales Clear growth strategy: − Extend network reach, incl. Social Networks und Mobile − Invest in scalable IT platform, develop first fully transparent marketplace for Advertisers and Publishers − International expansion continues (organic and via acquisitions) 35
  36. 36. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookDigital & Marketing ServicesExtend scope of professional services (starting in Switzerland) “Attract - Interact - Transact” Focus areas 2011: Increasing i I i importance of advertiser-“owned” media t f d ti “ d” di channels, i.e. online-shops, social commerce on E-Commerce projects Facebook, blogs etc. Strong position of Namics as a full-service Online communication provider f premium b d t d id for i brands to develop th i online l their li presence and online communications strategy Brands: measuring the impact of marketing efforts across all customer touchpoints (360°touchpoint (360 touchpoint Integrated campaign g p g view) management web2com to focus on integrated campaign 360° touchpoint view planning and management, servicing large accounts and their agencies in CH Growing complexity of performance-oriented online marketing channels, tracking and reporting Online promotion requirements, privacy issues q ,p y INSTANZ specialises in generating high quality Conversion online leads, helping brands convert them into valuable clients and winning back abandoners Targeted remarketing 36
  37. 37. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookDigital & Marketing ServicesTechnology and professional services driven businesses services-driven Technology-oriented performance marketing models with high scalability Technology- oriented 1) Key European markets penetrated - e.g. Zanox Group is market leader in in Germany and UK 1) Professional services- oriented business models Professional Namics benefit from scope services- Examples: e-business E l b i oriented concept, search engine marketing, lead management etc. Demand-side Supply-side (advertiser-oriented) (publisher-oriented)1) Zanox Group subsidiaries; note: Digital Window is the holding company for Affiliate Wi d Z G b idi i t Di it l Wi d i th h ldi f Affili t Window and b d buy.at t 37
  38. 38. CONCLUSION Conclusion & outlook 2011 Hans-Peter Rohner CEO & Chairman of the Board38
  39. 39. 1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlookConclusion & outlookOperationally largely improved, solidly financed, well positioned improved financed Media Sales achieves turnaround ahead of schedule; further improvements anticipated for 2011 Search & Find well positioned in local advertisement growth market; profitability to increase in 2011 DMS should see better IFRS results in 2011, capitalising on continuing strong operational performance Generally positive ad market environment PubliGroupe 2011: more compact, more financially solid and more successfully positioned i a growing market d f ll ii d in i k Expectation of double-digit growth in the operating result Board of Directors proposes a dividend payment of CHF 6 39
  40. 40. BACKUP SLIDES40
  41. 41. Comparable expenses by segment Backup CHF Mio % 2010 2009 Search & Find 8.5% -61.6 -56.8 Media Sales -20.6% -177.7 -223.8 Custom Publishing -21.7% 21 7% -9.5 95 -12.2 12 2 Digital & Marketing Services 8.5% -49.9 -46.0 Corporate & Others -51.2% -15.8 -32.4 Comparable expenses -11.6% -304.3 -344.4 Non recurring elements -52.3% 3.8 7.9 Total expenses -10.7% -300.5 -336.4 CHF 40.1 m or 13.8% overall expenses reduction on comparable basis41
  42. 42. Consolidated income statement Backup CHF m Change 2010 2009 Revenue - 8 4% 8.4% 1 474.2 1474 2 1 609.1 1609 1 Purchases - 10.1% (1056.6) (1175.2) Sales reductions + 0.7% (72.3) (71.8) Gross margin - 4.6% 345.3 362.1 Personnel expenses P l - 11 4% 11.4% (241.2) (241 2) (272.2) (272 2) General and administrative expenses - 12.4% (80.3) (91.7) Other income and expenses - 23.4% 21.0 27.4 EBITDA + 75.0% 44.8 25.6 Depreciation and amortisation - 10.3% (26.1) (29.1) Impairment loss - (2.0) (8.2) Share in result of associates - 15.9 8.8 Operating result (EBIT) - 32.6 (2.9) Financial result 23.9 (3.3) Result before income tax - 56.5 (6.2) Income tax expense - (7.2) (3.1) Result - 49.3 (9.3) Result attributable to: - Non-controlling interests - 39.1% 6.7 11.0 - Shareholders of PubliGroupe Ltd - 42.6 (20.3)42
  43. 43. Consolidated balance sheet Backup Assets as of 31 as of 31 December December CHF m Change 2010 2009 Cash and cash equivalents + 76.9% 102.6 58.0 Marketable and available-for-sale securities - 76.7% 15.3 65.8 Receivables, accruals and taxes receivables - 15.2% 298.8 352.3 Assets held for sale - 25.3 Current assets - 16.9% 416.7 501.4 Land and buildings - 8.9% 75.6 83.0 Other tangible and intangible assets - 6.9% 72.9 78.3 Investments in associates - 9 0% 9.0% 232.7 232 7 255.8 255 8 Actifs financiers et impôts différés + 94.4% 63.0 32.4 Non-current assets - 1.2% 444.2 449.5 Total assets - 9.5% 860.9 950.943
  44. 44. Consolidated balance sheet Backup Liabilities and equity as of 31 as of 31 December December CHF m Change 2010 2009 Short-term debts - 100.0% - 65.0 Payables, accruals and taxes payables - 2.6% 289.7 297.4 Long and short term provisions, deferred taxes - 5.6% 30.4 32.2 Long term Long-term debts - 6.4% 96.6 103.2 Total liabilities - 16.3% 416.7 497.8 Share capital - 2.5 2.5 Treasury shares - 1.1% (52.6) (53.2) Reserves - 0 6% 0.6% 460.9 460 9 463.5 463 5 Equity, shareholders of PubliGroupe Ltd - 0.5% 410.8 412.8 Non-controlling interests - 17.1% 33.4 40.3 Total equity - 2.0% 444.2 453.1 Total liabilities and equity - 9.5% 860.9 950.944
  45. 45. Cash flow from operating activities Backup CHF m 2010 2009 Result 49.3 (9.3) Adjustments for non-cash items (14.1) 24.8 Dividends paid to non-controlling interests by Group companies (9.1) (46.7) Dividends received 15.0 15 0 66.5 66 5 Interest received 1.4 1.6 Interest paid (4.2) (5.8) Taxes paid (8.3) (14.5) Use of provisions (7.2) (5.0) Working capital changes 6.8 (5.3) Cash flows from operating activities 29.6 6.345
  46. 46. Cash flow from investing activities Backup CHF m 2010 2009 Acquisitions of tangible assets (3.6) (8.9) Disposals of tangible assets 24.1 17.5 Acquisitions of intangible assets (14.3) (15.8) Disposals of marketable securities 4.4 44 0.2 02 Acquisitions of subsidiaries, net of cash acquired (3.4) (4.8) Acquisitions of associates (2.0) (15.8) Disposals of subsidiaries, net of cash disposed of 0.1 6.7 Disposals of associates 22.7 0.1 Investments in financial assets (7.0) (0.8) Divestments of financial assets 76.6 14.5 Taxes paid (0.6) (0.6) Cash flows from investing activities 97.0 (7.7)46
  47. 47. Cash flow from financing activities Backup CHF m 2010 2009 Increase /(decrease) in bank debts (65.0) (120.0) Increase in long-term debt - 100.0 Decrease in long-term debt (7.0) - Capital contribution from non controlling interests non-controlling 0.1 01 - Purchase of treasury shares (1.5) - Sale of treasury shares (Share-based payments) 0.2 0.6 Acquisition of non-controlling interests (5.6) - Increase in additional paid-in capital 0.1 0.1 Dividend paid to shareholders of PubliGroupe Ltd - (2.8) Cash flows from financing activities (78.7) (22.1)47

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