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PubliGroupe Full Year Results 2009 E

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Presentation to the press and financial analysts for the 2009 results of PubliGroupe.

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PubliGroupe Full Year Results 2009 E

  1. 1. Connecting media, advertisers and customers Year end 2009 Results Turning media sales business around & tapping into new digital d i i di i l growth markets www.publigroupe.com 1
  2. 2. Content1. YE 2009 Key figures & main developments y g p2. Group Strategy: Turning media sales business around & tapping into new digital growth markets3. Update per Business Segment – Financial Results – Key Initiatives4. Group Results5. Strategy summary6. Board of Directors7. Outlook2
  3. 3. 1. YE 2009 Key figures & main developments3
  4. 4. 1. YE results 2009 – Main achievementsLast year, March 13 2009, we had defined the following priorities: Degree of achievement During 2009, we largely achieved these priorities Building the basis for growth and profitability4
  5. 5. 1. YE results 2009 – Main impacts Recession/structural market changes Sales and GM, in CHFm – impact all, yet especially traditional and 2008 2009 print-oriented markets 2500 – PubliGroupe records -25% sales in print advertising 2000 1500 Digitalization and online services 1000 – drive sales and gain positive earnings momentum 500 – +22% sales in online services (incl. minority participations) 0 Net Sales Gross Margin EBIT and Net profit, in CHFm Financial results 2009 2008 2009 – Group sales -24% to CHF 1 6bn 24% 1.6bn 40 30 – Gross margin -19% to CHF 362.1m 20 – EBIT -111% to CHF -4.5m 10 – Net result CHF -20.9m 0 10 -10 -20 -30 No dividend for FY 2009 -40 -50 EBIT Net Profit5
  6. 6. 1. YE results 2009 – Main impacts Gross Margin represents the true economic value added Gross Margin 2009 in % 2009, by PG’s activities Other Media [remark: PG turnover is representing ad spend volumes/“billings”] segments Sales Accelerated structural shift of Gross Margin contribution towards business segments representing growth 47.5% markets, decreasing dependency on PG’s traditional 52.5% Media Sales activities close to half of the Gross Margin contribution generated by “non-Media-Sales”-related activities.6
  7. 7. 1. YE results 2009 – Timing of impacts Recession impacted results from 1HY 2008 onwards – Gross margin erosion of CHF 84m in 2009 – Cost reductions 2009 of CHF 55m at the price of CHF 11m one off costs one-off – Initiated measures will allow for further cost reductions of CHF 38m in 2010 Rapidly taken measures mitigate effect on EBIT, result in – positive EBIT pro forma for 2HY 2009 – yet cannot prevent operational loss in FY2009 – FY2009 EBIT CHF -4.5m – FY2009 EBIT pro forma excl. one-time effects CHF -3.2m 70 EBIT 50 EBIT pro forma 30 10 -10 -30 1HY 08 2HY 08 1HY 09 2HY 09 FY2008 FY20097
  8. 8. 1. YE results 2009 – EBIT IFRS vs. EBIT pro forma EBIT IFRS CHF -4.5m Eliminating one-off gains from – Divestments CHF 13.6m – Participations CHF 7.3m Eliminating one-off costs from – Impairments CHF 8.3m – Restructuring CHF 11.9m – Oth Others CHF 22m EBIT pro forma CHF -3.2m-30 30 -25 25 -20 20 -15 15 -10 10 -5 5 0EBIT pro forma best reflects effective operational performanceOne-off effects have a negative effect of CHF 1.3m on EBIT IFRS have a negative effect CHF 5.4m on Net Result IFRS of CHF -20.9m 8
  9. 9. 1. YE results 2009 – EBIT trends by segment EBIT, in CHFm per Segment 08 EBIT 09 EBIT Recession and structural 50 changes in media landscape mostly impacted results in more 40 37.6 traditional and especially print- 30.4 30 4 30 oriented markets 20 Online and transaction oriented 9.6 10 6.8 markets continue to perform 1.2 solidly 0 10 -10 -5.7 57 -20 -30 30 -28.8 -29.4 28 8 -40 Media Custom Search Digital & Sales Publishing & Find Marketing Services S i9
  10. 10. 2. Group Strategy: Turning media sales business around & tapping into new digital growth markets10
  11. 11. 2. Group Strategy Update – Underlying mega trends1. Diverging growth in advertising market segmentsTraditional media loose, while digital media gain market shareSwiss media spend 2002-2010 (f) Evolution of media mix, in % Print Other traditional media Digital CAGR 0.5 5.9 100%4000 40% 5% 80% 36.7 36 73000 44.2 60%2000 40% 62.71000 0% 49.8 20% 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2010Source GroupM 11
  12. 12. 2. Group Strategy Update – Underlying mega trends2. From display marketing to performance marketingS&F and D&MS are well positioned in these growth segments Online advertising spend in Western Europe, in EURm CAGR 16000 Display Search Affiliate 14000 1678 +9% 1504 12000 1103 1364 1 153 1153 1 274 1274 10000 8732 +8% 8000 6049 7789 6223 7024 6492 6000 4000 -1% 5102 4379 4842 2 000 2000 4 156 4156 3 817 3817 4 009 4009 0 2008 2009 2010 2011 2012 2013Source: Estimates 2009 figures from PwC; IAB Europe/US/UK, OVK Germany, ZenithOptimedia, Jupiter Research 12
  13. 13. 2. Group Strategy Update – Underlying mega trends3. From advertising only to facilitating and participating in transaction volumes of E-commerce Market Transaction drives performance marketing Performance marketing is benefiting from strong growth in e-commerce market PubliGroupe strategy addresses both markets: Advertising + e-commerce Evolution of Advertising vs. E-commerce in Germany, in EURm 25000 23275 Advertising E-commerce 21209 20000 19099 17797 CAGR 16974 17310 16727 17187 e-com merce 2009-2014: 15 000 15000 11% 10000 5000 0 2009 2010 2011 2012Source: Western European Online Retail, Forecast, 2009 to 2014, Forrester 13
  14. 14. 2. Group Strategy Update – Tapping into Growth Markets ADVERTISING OFFLINE: ADVERTISING ONLINE: TRANSACTION: Classic Media Interactive Media Performance Marketing Print Directories Local Search ROI Optimizing Customer Magazines TREND TREND TREND Global (-) / National (-) / Search Marketing / E-commerce/ Local (++) Ad Networks / Rich Brand Channels (+++) media / Mobile (++) Digital & Marketing Services Search & Find Custom Publishing Media Sales Addressable market of PubliGroupe business segments Interest Intent Purchase14
  15. 15. 2. Group Strategy Update – Our claimConnecting media, advertisers and customersC ti di d ti d tMarket need for: PubliGroupe’s product and service offeringMedia Enabling media owners to monetize theirFragmentation of audience implies audience with higher competition, price pressure dynamic, dense and international sales network change in market shares efficient and cost-saving digital workflows andThis ll fThi calls for: l tf platforms pro-active sales process optimization and cost optimizationAdvertisers Enabling advertisers to efficiently reach theirMultiplication of marketing channels implies customers and optimize the ROI of their more complexity and more choice marketing spend withThis calls for performance marketing services across all media support and guidance pp g data-based tools to efficiently target, measure and y g , transparency optimize marketing spends performance optimization ROI optimizationCustomersC t Enabling t E bli transactions with customers with ti ith t ithalways “on” behavior implies efficient local search platform customized/personalized media consumption transaction oriented digital marketing tools and E-commerce propensity services need for efficient search and transaction tools15
  16. 16. 2. Group Strategy Update –Building the base for growth and profitabilityInvestments in Prime focus on:growth markets Performance marketing, Local Search, digital workflow platformsDivestment ofDi t t f Reduce debt –non-core assets Increase Investment capability – Increase ROICReorganisation Align organisation to strategy –and cost Reduction of structuresreduction and costs to mitigate risks Expand in digital services (local search & performance marketing)Strategy Expand in marketing services p g Develop an all-media sales expertise 2007 2008 2009 2010 16
  17. 17. 3. Update per Business Segment17
  18. 18. Media Sales18
  19. 19. 3. Business Segments / Media Sales: Financial results Sales, in CHFm Recession and structural market 2000 changes impact result 1500 – Sales -25% to CHF 1.3 bn – Gross margin -26% to CHF 204m 1000 – EBIT -2% to CHF -29.4m 2% 29 4 500 0 Rapidly taken measures alleviate impact 2008 2009 – Headcount -317 FTE to 1430 FTE Gross Margin and EBIT, in CHFm – Cost reduction 2009 of CHF 48m and 2008 2009 350 restructuring costs 2009 of CHF 9.6m 250 150 New business model to restore profitability in 2011 50 -50 50 Gross Margin EBIT19
  20. 20. 3. Business Segments / Media Sales:Key initiatives at a glance Implement transparent new business model p p – based on modular sales services and – efficient digital workflow solutions Leverage the unique sales network nationally and internationally Set-up three operational entities as from May 1, 2010 p p y , – Sales Switzerland – Sales International – L i i Unit Logistic U i20
  21. 21. 3. Business Segments / Media Sales:Key initiatives"Implement transparent new business model" Publicitas: Reliable partner Restore profitability as leading media along the advertisement value chain sales company with unique network New Efficient – Transparent market pricing based Service New Digitization Logistics on modular offerings Pricing of Processes Offering services – No cross-subsidies – Proactive sales efforts Media Owner – Enhance sales advisory services across all media channels Establish industry-leading digital workflow platforms – Publicitas network: standardized, efficient processes – Market-wide platform: open up solution for industry-wide use as industry wide neutral service provider (Business process outsourcing) My Publicitas: Online-Tools for planning and booking M P bli it O li T l f l i d b ki21
  22. 22. 3. Business Segments / Media Sales:Key initiatives"Implement transparent new business model“ – well on track Traditional business model New business model Exclusive representation Modular: Publisher may choose services and combine vs. inhouse sales in several ways, including full outsourcing „Regie- vs. Autoregie“ Fixed commission rate Cost / performance orientation, transaction fees (e.g. 11% on revenue) Universal reselling Restrictive reselling based on modular contracts 3-year contract migration schedule – Full-service contracts – Modular contracts – Core bundle contracts22
  23. 23. 3. Business Segments / Media Sales:Key initiatives“Leverage unique sales network nationally and internationally” 22 countries ti 47 offices on international level, 69 offices in Switzerland an unparalleled media sales network Approx. 12000 daily contacts with 220’000 advertising clients on regional, national and international level + digital sales channels (e-tools “myPublicitas”) Restructuring efforts underway – Nationally: Refocus service offerings based on partner/client portfolio; Centralize back-office functions; Maximize use of digital platforms – Internationally: Evaluate key network locations; reduce organizational complexity23
  24. 24. 3. Business Segments / Media Sales:Key initiatives“Set-up three operational entities” As from May 1, 2010 y New CEO Media Sales: Beat Roeschlin Media Sales P Sales Switzerland P Sales International Logistics Unit24
  25. 25. Custom Publishing25
  26. 26. 3. Business Segments / Custom Publishing: Financial results Sales, in CHFm Budget cuts in key industries 40 – Sales -19% to CHF 24 6m 19% 24.6m 30 – Gross margin -23% to CHF 9.9m 20 EBIT of CHF -5.7m 10 – Despite tight cost control, expenses increase due to build-up of London build up 0 2008 2009 and Singapore offices Gross Margin and EBIT, in CHFm – Including Goodwill amortization of CHF 2.7m 2008 2009 15 10 5 0 -5 -10 10 Gross Margin EBIT26
  27. 27. 3. Business Segments / Custom Publishing:Key initiatives at a glance Transition from "print-only" to “multi-channel marketing solutions“ p y g Strengthen existing foothold in Asian airline vertical and selective expansion into other regions or verticals27
  28. 28. 3. Business Segments / Custom Publishing:Key initiatives Customer acquisition“From ‘print-only’ to solutions‘multi-channel marketing’” Strong expertise in customer magazines Customer Evolution towards retention solutions – 360° marketing solutions "360°" Airport solutions around major brands in a specific i d t ifi industry – Multimedia sales solutions On board solutions / entertainment28
  29. 29. 3. Business Segments / Custom Publishing:Key initiatives“Strengthen existing foothold in AsianAirline vertical and selective expansion intoother regions or verticals” th i ti l ” Broaden customer base to increase penetration in vertical "Airline" Airline Expand to other verticals, e.g. Travel Selectively S l ti l expand i t d international presence ti l alongside client portfolio – Singapore – London Identify consolidation opportunities in highly fragmented market29
  30. 30. Search & Find30
  31. 31. 3. Business Segments / Search & Find:Financial results Sales, in CHFm 140 Sales -4% to CHF 130.8m 120 – On-line services grow 13%, 100 accounting for 30% of sales 80 – Print products decline 8.4%, 60 – Discontinued “Autobörse” and 40 “Fundgrueb” activity in CH 20 – Decline in France: -22.5% 0 2008 2009 Gross margin -7% to CHF 101m Gross Margin and EBIT, in CHFm EBIT -19% to CHF 30.4m; profitability to 2008 2009 increase in the future 120 100 Online products need further investments to fully 80 counter-balance foreseeable decline of print 60 Goodwill amortization CHF 5.5m (Bégécom) 40 20 0 Gross Margin EBIT31
  32. 32. 3. Business Segments / Search & Find:Key initiatives at a glance Leverage #1 market position in Directories in Switzerland with JV-partner Swisscom into local search market JV t S i i t l l h k t Expand presence in local markets in France building on #2 position32
  33. 33. 3. Business Segments / Search & Find:Key initiatives “Leverage #1 market position in Directories in Switzerland with JV-partner Swisscom into local search market”Migration Print to Online implies revenue structure shift Online Print 2007 2008 2009 20% 25% 30% 75% 70% 80%Successful combination Number of clients of local.chof online properties under 3 000 000 3000000roof 2000000 1000000 0 Nov 08 Jun 09 Ju 09 Nov 09 Dez 08 Jan 09 Mrz 09 Aug 09 Dez 09 Ok 08 Feb 09 Ap 09 Ma 09 Sep 09 Ok 09 ul z z z n g kt kt pr b p ai 33
  34. 34. 3. Business Segments / Search & Find:Key initiatives“Leverage #1 market position in Directories in Switzerland with JV-partner Swisscominto local search market” LTV is one of the most successful Online Revenue S&F CH online sales houses in CH 50 Opportunities 2010 40 – Widen local search offering on fixed g and mobile internet 30 ("Go beyond directories") 20 – Deploy performance-based business models in local markets 10 (i.e. local ad-network) 0 2007 2008 200934
  35. 35. 3. Business Segments / Search & Find:Key initiatives“Expand presence in local markets in France;building on existing #2 position” Further integration of Amitel and Bégécom activities, increase profitability and sales efficiency ffi i Expand local.fr online presence, enter new partnerships to develop reach more aggressively i l Strengthen online and mobile local search portfolio ("Go beyond directories")35
  36. 36. Digital & Marketing Services36
  37. 37. 3. Bus. Segm. / Digital & Marketing Services:Financial results Gross margin -7% from CHF 53.1m to CHF 49.4m DMS Sales, in CHFm – Excellent development of performance marketing namics SVB p portfolio 250 – Joint-ventures zanox and Digital Window show 200 strong sales and margins 150 – Namics equals excellent 2008 performance 100 – SVBmedia affected by decline in traditional media billings, rapid measures limit impact on gross- 50 margin and EBIT 0 2008 2009 Sales -28% to CHF 155.6m due to SVBmedia DMS Gross Margin and EBIT, in CHFm 2008 2009 EBIT +41% to CHF 9.6m 50 – Digital activities contribute CHF 5.6m EBIT 40 – Pro Forma EBIT* increases by 31% to 20.2m CHF DMS pro Forma EBIT* 30 – One-time EBIT gain CHF 4m ( g g (negative Goodwill 20.2 20 2 due to increased stake in zanox) 20 + 31 % 15.4 10 + 41 % 0 Gross Margin EBIT* DMS pro forma EBIT = EBIT before zanox/Digital Window Purchase price allocation, Interest and Tax 37
  38. 38. 3. Bus. Segm. / Digital & Marketing Services:Key initiatives at a glance Achieve market leadership position in Europe in pp p "Online Performance Marketing“ Extend marketing services scope, starting in Switzerland38
  39. 39. 3. Bus. Segm. / Digital & Marketing Services Key initiatives “Achieve market leadership position in zanox: FACTS & FIGURES ‘Online Performance Marketing’ in Europe” Publishers/Affiliates: > 1 Mio. Advertisers: > 2000 JVs (zanox, Digital Window, Buy.at) between Generated sales > EUR 5 Bn AXEL SPRINGER and PubliGroupe created Transactions per Day leading European Group in online affiliate g p p – Views 360 Mio marketing since 2007 – Clicks 30 Mio – Sales 60 000 – Leads 40 000Sales 2009 , in EURM (compared with main competitor) JV AS/PGTrade Doubler 0 50 100 150 200 250 300 350 39
  40. 40. 3. Bus. Segm. / Digital & Marketing Services Key initiatives“Achieve market leadership position in ‘Online Performance Marketing’ in Europe” Realize growth with new zanox senior management based on vast international e-commerce experience gained at ebay, Microsoft, ciao.com, etc. Daniel Philipp Christian Keller Justus Kleinsorge Evaluate further market extensions Develop performance agency business, building on experience (100% zanox-owned, H b i d Hamburg-based unit) b d i)40
  41. 41. 3. Bus. Segm. / Digital & Marketing Services: Key initiatives“Extend marketing services scope, starting in CH” Reposition digital marketing offering in Switzerland under roof of WEB2COM, including zanox services Expand Namics premium client base in Switzerland and Germany Implement technology solution for p gy sophisticated targeting and data management services in test market Switzerland e.g. Launch performance ad network e.g. in Q1-201041
  42. 42. 4. Group Results42
  43. 43. P&L Group CHF Mio Change % 2009 2008 Revenue -24.1% 1609.1 2120.6 Gross margin -18.9% 362.1 446.3 Expenses -6.4% -354.2 -378.6 EBITDA -88.3% 88 3% 7.9 79 67.7 67 7 EBIT - -4.5 40 Financial result Fi i l lt -94.0% 94 0% -3.3 33 -54.7 54 7 Net Result -50.4% -20.9 -42.143
  44. 44. Extraordinary items 2009 Net Result 2009 - Nominal -20.9 Divestments -12.9 Impairments 8.2 Restructuring 10.5 Others -0.5 Total non recurring elements 5.4 Net Result 2009 - Comparable -15.5 -15 5 Balance of non recurring items is a net loss of CHF 5.4 Mio44
  45. 45. Cause of changeNet result A 2008 -42.1One Time Events 2008 -46.2Comparable A 2008 4.2Gross margin -83.2Expenses 57.9Depreciation 1.7Associated -9.4Financial result 2.5Taxes 8.8Minority interests 1.9Comparable A 2009 -15.5One Time Events 2009 -5.4Net result A 2009 -20.9 20.9 CHF Mio -80 -70 -60 -50 -40 -30 -20 -10 0 10• CHF 58 Mio cost reduction is not enough to compensate CHF 83 Mio ( Mio nominal) g p (84 ) Gross Margin decline 45
  46. 46. Comparable expenses by segment CHF Mio % 2009 2008 Search & Find S h Fi d -7.3% 7 3% -74.5 74 5 -80.3 80 3 Media Sales -17.6% -223.8 -271.7 Custom Publishing 10.7% 10 7% -12 2 12.2 -11 0 11.0 Digital & Marketing Services -4.0% -46.0 -47.9 Corporate & Others -26.2% -32.4 -43.9 Comparable expenses -13.8% -362.1 -420.0 Non recurring elements -119.1% 7.9 -41.5 Total expenses -23.3% -354.1 -461.5 All units have taken decisive cost reduction measures 13.8% overall expense reduction on comparable basis46
  47. 47. Comparable expenses 2007-2010CHF Mio Media Sales HQ Corporate 350 -22.0 Decisive cost reduction efforts in 300 27.8 Media Sales and Corporate HQ 28.8 -55.1 since mid 2008 250 21.7 -38.0 Overall cost reduction until 2010: 200 19.2 CHF 100 Mio + in these two units 150 293.7 271.7 223.8 100 188.3 50 0 2007 2008 2009 B 2010 47
  48. 48. Number of employees evolutionFTE3100 +31 Significant but also selective3000 FTE reduction which is about to2900 continue in 201028002700 -3852600 2973 3003 -11425002400 2 618 2618 250523002200 2007 2008 2009 B 201048
  49. 49. Balance Sheet In millions of CHF % 2009 2008 Current assets +10.8% 534.9 482.7 Non-current assets -31.3% 425.1 619.1 Total assets -12.9% 960.0 1101.8 Current liabilities -33.2% 372.9 558.3 Long-term liabilities - 126.6 32.9 Equity, shareholders of PubliGroupe Ltd. -3.4% 416.8 431.3 Minority interests y -44.9% 43.7 79.3 Total liabilities and equity -12.9% 960.0 1101.8 Equity in % of assets 43% 39% Net liquidity 4.8 -94.8 Bank debt 165.0 185.0 The groups balance sheet remains solid The liquidity and debt structure were improved during 200949
  50. 50. Real Estate EBITCHF Mio Real Estate comparable One time elements 50 Real estate reduction 2008 - 45 2010 with important 40 extraordinary gains yg 35 Stable situation from 2010 30 onwards 25 42.9 42 9 Remaining portfolio i mortaged R i i tf li is t d 20 for group financing facility 15 10 6.1 5.5 5 7.8 4.5 6.3 5.1 0 2007 2008 2009 2010 50
  51. 51. Net financial resultCHF Mio 2009 2008Result on loans and receivables 1.8 3.7Result on marketable securities 4.2 -13.6Result on available-for-sale securities -3.4 -36.4Result on uncommitted net assets of employers foundations 1.4 -2.3Interest expenses -6.3 -8.7Net currency exchange differences -1.0 2.6Total -3.3 -54.751
  52. 52. Cash flow statementsCHF Mio Change g 2009 2008Cash and cash equivalents as of 1 January - 6.5% 81.4 87.1 Cash flows from operating activities p g -8.7 43.8 Cash flows from investing activities 7.3 15.9 Cash flows from financing activities -22.1 -60.4 Effect of exchange rates 0.1 -5.0Cash and cash equivalents as of 31 December - 28.7% 58.0 81.452
  53. 53. Consolidated statements of recognised income and expenseCHF Mio 2009 2008Result -10.6 -29.8 Translation differences - -28.9 Net change in fair value of available-for-sale financial instruments 8.1 -29.9 Effective portion of changes in fair value of cash flow hedges -0.6 - Changes in the other comprehensive income of associates - -0.1Other comprehensive income 7.5 -58.9TotalT t l comprehensive income h i i -3.1 31 -88.7 88 753
  54. 54. Consolidated statements of changes in equityCHF Mio 2009 2008Balance as of 1 January 2009 510.6 662.6Total comprehensive income -3.1 3.1 -88.7 88.7Increase in additional paid-in capital 0.1 0.3Purchase of treasury shares - -42.3Sale of treasury shares - 7.3Share-based compensation 1.7 0.4Dividends -2.8 -29.7Net change in minority interests -46.0 0.7Balance as of 31 December 2009 460.5 510.654
  55. 55. 5. Strategy Summary55
  56. 56. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (I/VI)Main focus 2010 Implement Media Sales new business model p Develop leading position of Search & Find in local search marketing Leverage competencies to offer customers and agencies efficient commercial communication tools and services Redefinition Strategy Business model Turnaround MS 4 business implementation in Media Sales No1 position in CHStrategy segments; & adaptation to Development of local search market going digital global crisis D&M Services in EU Develop performance and S&F in CH; marketing in CH Crisis mitigation 2007 2008 2009 2010 56
  57. 57. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (II/VI) Achieved cost savings of CHF 55.1m in 2009 – CHF -47.9m in Media Sales alone Headcount reduction by 385 FTE – Mainly at HQ and Media Sales Expected cost saving effect of CHF 38m in 2010 – CHF -35.5m in Media Sales aloneReorgani-sation and CHF -55m CHF -22m CHF -38mcostreduction 2007 2008 2009 2010 57
  58. 58. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (III/VI) Ongoing divestment of non-core assets – Real estate – Non core holdings of publishing houses Non-core Credit financing agreements – Mortgage of CHF120m – CHF 90m credit li 90 di line ( b reduced to CHF 50 J (to be d d 50m June 30) Strong balance sheet with 44% equity ratio Debt reduced by CHF 20m to CHF 165m Target: maintain investment ability of CHF 50m plus Real estate Real Estate ea state 3 % 37% BAZDivestment Zürich Winterthur Medienof non-coreassets 100% Stadt- anzeiger 2007 2008 2009 2010 58
  59. 59. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (IV/VI) Performance marketing: Build the leading European online affiliate marketing group together with Axel Springer Local Search: Build the no1 local search platform in Switzerland together with Swisscom Advertising market: Build an open end to end digitized interface between advertisers and end-to-end media ownersInvestmentsin Growthmarkets 2007 2008 2009 2010 59
  60. 60. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (V/VI)Investments ingrowth marketsDivestment ofDi t t f Real estate: – Real estate 37% BAZ Zürich in Winterthur Mediennon-core assets – 100% Stadt- anzeiger OltenReorganisation CHF -22 Mio CHF -55 Mio CHF -38 Mioand costreduction Expand in digital services (local search & perf. marketing)Strategy Expand in marketing services p g Develop an all-media sales expertise 2008 2009 2010 60
  61. 61. 5. Strategy Summary: Turning media sales business around &tapping into new digital growth markets (VI/VI) Growing importance of online revenueOnline Revenues PubliGroupe, p , Online Revenues, ,in CHFm in CHFm PG incl. participations MediaSales Search&Find DMS (excl.zanox) PG (excl. Zanox) zanox Digital Window Buy.at140 700120 600100 500 80 400 60 300 40 200 20 100 0 0 2007 2008 2009 2007 2008 2009 Group participations generate close to CHF 600 Million online revenue 61
  62. 62. 6. Board of Directors62
  63. 63. 6. Board of Directors:Two new members proposed for election to Board of Directors Mr Kjell Aamot, Oslo (NOR) – Norwegian citizen, born in 1950 – President and CEO of Schibsted ASA, Oslo, from 1989 to Mai 2009. Schibsted AS is an international Media Group with a presence in 23 countries and with 7 250 employees. Mr Aamot has been in the Schibsted Group since 1977 and currently acts as consultant for its General Management. – Has a Masters degree of Business and Economics from the Norwegian School of Management (BI) Dr. Andreas M. Schönenberger, Zurich (CH) – Swiss citizen, born in 1965 – Googles Country Manager for Switzerland for the last four g y g years – From 2003 to 2006, management consultant and vice president at Monitor Group Switzerland, where he built up the companys Swiss business – Consultant at The Boston Consulting Group from 1998 to 2003 – Graduated in physics from the ETH in Zurich and then earned his doctorate at the ETH. He also has an MBA from London Business School.63
  64. 64. 7. Outlook64
  65. 65. 7. Outlook 2010 Slight improvements of Group result stemming from growing presence in transaction- oriented markets and further cost reductions Media Sales still in transformation process, returning to profitability in 2011 Ongoing implementation of initiatives 2010 leading to changed Group profile with – Decreasing dependency on classical media and advertising markets – G Growing f i focus on performance b f based marketing services d k ti i65
  66. 66. Connecting media, advertisers and customersC ti di d ti d t Thank you for your attention www.publigroupe.com66
  67. 67. Connecting media, advertisers and customersC ti di d ti d t Backup slides67
  68. 68. Consolidated income statementsCHF Mio Change 2009 2008Revenue - 24.1% 1609.1 2120.6Purchases - 25.4% -1175.2 -1575.5Sales reductions - 27.3% -71.8 -98.8Gross margin - 18.9% 362.1 446.3Personnel expenses - 8.4% -289.9 -316.6General and administrative expenses - 14.9% 14 9% -91.7 -91 7 -107.7 -107 7Other income and expenses - 40.0% 27.4 45.7EBITDA - 88.3% 7.9 67.7Depreciation and amortisation - 11.6% -13.0 -14.7Impairment loss - -8.2 82 -33.8 33 8Share in result of associates - 8.8 20.8Operating result (EBIT) - -4.5 40.0Financial result -3.3 -54.7Result before income tax - 46.9% -7.8 -14.7Income tax expense - 81.5% -2.8 -15.1Result of continuing operations - -10.6 -29.8Result from discontinued operations - -Result - -10.6 -29.8Result attributable to :- Minority interests - 16.3% 10.3 12.3- Shareholders of PubliGroupe Ltd - -20.9 -20 9 -42.1 -42 1 68
  69. 69. Consolidated balance sheetsAssets as of 31 as of 31 Decembe DecembCHF Mio Change 2009 2008Cash and cash equivalents - 28.7% 58.0 81.4Marketable and available-for-sale securities - 65.8 8.8Receivables, accruals and taxes receivables - 1.7% 385.8 392.5Assets held for sale 25.3 -Current assetsC t t + 10 8% 10.8% 534.9 534 9 482.7 482 7Land and buildings - 14.9% 83.0 97.5Other tangible and intangible assets - 21.8% 54.3 69.4Investments in associates - 20 4% 20.4% 255.8 255 8 321.5 321 5Actifs financiers et impôts différés - 75.5% 32.0 130.7Non-current assets - 31.3% 425.1 619.1Total assets - 12.9% 12 9% 960.0 960 0 1 101.8 1101 8 69
  70. 70. Consolidated balance sheetsLiabilities and equity as of 31 as of 31 December DecemberCHF Mio Change 2009 2008Short-term debts - 64.9% 65.0 185.0Payables, accruals and taxes payablesP bl l dt bl - 19 1% 19.1% 297.4 297 4 367.6 367 6Long and short term provisions, deferred taxes - 2.6% 33.9 34.8Long-term debts - 103.2 3.8Total liabilities - 15 5% 15.5% 499.5 499 5 591.2 591 2Share capital - 2.5 2.5Treasury shares - 40.0% -53.2 -88.6Reserves - 9 6% 9.6% 467.5 467 5 517.4 517 4Equity, shareholders of PubliGroupe Ltd - 3.4% 416.8 431.3Minority interests - 44.9% 43.7 79.3 q yTotal equity - 9.8% 460.5 510.6Total liabilities and equity - 12.9% 960.0 1101.8 70
  71. 71. Cash flow from operating activitiesCHF Mio 2009 2008Result (10.6) (29.8)Adjustments for non-cash items 8.4 60.1Dividends paid to minority interests by group companies (46.7) (46 7) (7.9) (7 9)Dividends received 66.5 16.7Interest received 1.6 3.7Interest paid (5.8) (6.8)Taxes paid (14.5) (15.7)Use of provisions (5.0) (5 0) (4.7) (4 7)Working capital changes (2.6) 28.2Cash flows from operating activities (8.7) 43.871
  72. 72. Cash flow from investing activitiesCHF Mio 2009 2008Acquisitions of tangible assets (8.9) (19.0)Disposals of tangible assets 17.5 66.4Acquisitions of intangible assets (0.8) (1.8)Disposals of marketable securities 0.2 02 -Acquisitions of subsidiaries, net of cash acquired (4.8) (14.0)Acquisitions of associates (15.8) (11.6)Disposals of subsidiaries, net of cash disposed of 6.7 2.9Disposals of associates 0.1 -Investments i fiI t t in financial assets i l t (0.8) (0 8) (15.8) (15 8)Divestments of financial assets 14.5 14.9Taxes paid (0.6) (6.1)Cash flows from investing activities 7.3 15.972
  73. 73. Cash flow from financing activities CHF Mio 2009 2008 Increase /(decrease) in bank debts (120.0) 5.0 Increase in long-term debt 100.0 - Contribution from minority interests - 0.5 Purchase of treasury shares - (42.3) Sale of treasury shares 0.6 06 5.8 58 Increase in additional paid-in capital 0.1 0.3 Dividend paid to shareholders of PubliGroupe Ltd (2.8) (29.7) Cash flows from financing activities (22.1) (60.4)73

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