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

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. Content
1. YE 2009 Key figures & main developments
y g p
2. Group Strategy: Turning media sales business around &
tapping into new digital growth markets
3. Update per Business Segment
– Financial Results
– Key Initiatives
4. Group Results
5. Strategy summary
6. Board of Directors
7. Outlook
2

3. 1. YE 2009 Key figures & main developments
3

4. 1. YE results 2009 – Main achievements
Last 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 profitability
4

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 2'500
– PubliGroupe records -25% sales in print advertising 2'000
1'500
Digitalization and online services 1'000
– 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 Profit
5

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. 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 FY2009
7

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 0
EBIT pro forma best reflects effective operational performance
One-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. 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 i
9

10. 2. Group Strategy: Turning media sales business around &
tapping into new digital growth markets
10

11. 2. Group Strategy Update – Underlying mega trends
1. Diverging growth in advertising market segments
Traditional media loose, while digital media gain market share
Swiss media spend 2002-2010 (f) Evolution of media mix, in %
Print Other traditional media Digital CAGR
0.5 5.9
100%
4'000 40%
5%
80% 36.7
36 7
3'000 44.2
60%
2'000
40%
62.7
1'000 0% 49.8
20%
0 0%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2002 2010
Source GroupM
11

12. 2. Group Strategy Update – Underlying mega trends
2. From display marketing to performance marketing
S&F and D&MS are well positioned in these growth segments
Online advertising spend in Western Europe, in EURm
CAGR
16'000
Display Search Affiliate
14'000 1'678 +9%
1'504
12'000 1'103 1'364
1 153
1'153 1 274
1'274
10'000
8'732
+8%
8'000 6'049 7'789
6'223 7'024
6'492
6'000
4'000
-1%
5'102 4'379 4'842
2 000
2'000 4 156
4'156 3 817
3'817 4 009
4'009
0
2008 2009 2010 2011 2012 2013
Source: Estimates 2009 figures from PwC; IAB Europe/US/UK, OVK Germany, ZenithOptimedia, Jupiter Research
12

13. 2. Group Strategy Update – Underlying mega trends
3. 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
25'000 23'275
Advertising E-commerce
21209
20'000 19'099
17'797 CAGR
16'974 17'310 16'727 17'187
e-com merce
2009-2014:
15 000
15'000 11%
10'000
5'000
0
2009 2010 2011 2012
Source: Western European Online Retail, Forecast, 2009 to 2014, Forrester
13

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 Purchase
14

15. 2. Group Strategy Update – Our claim
Connecting media, advertisers and customers
C ti di d ti d t
Market need for: PubliGroupe’s product and service offering
Media Enabling media owners to monetize their
Fragmentation 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 and
This ll f
Thi calls for: l tf
platforms
pro-active sales
process optimization and cost optimization
Advertisers Enabling advertisers to efficiently reach their
Multiplication of marketing channels implies customers and optimize the ROI of their
more complexity and more choice marketing spend with
This 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 optimization
Customers
C t Enabling t
E bli transactions with customers with
ti ith t ith
always “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 tools
15

16. 2. Group Strategy Update –
Building the base for growth and profitability
Investments in Prime focus on:
growth markets Performance marketing,
Local Search, digital workflow platforms
Divestment of
Di t t f Reduce debt –
non-core assets Increase Investment capability –
Increase ROIC
Reorganisation Align organisation to strategy –
and cost Reduction of structures
reduction 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. 3. Update per Business Segment
17

18. Media Sales
18

19. 3. Business Segments / Media Sales: Financial results
Sales, in CHFm
Recession and structural market 2'000
changes impact result
1'500
– Sales -25% to CHF 1.3 bn
– Gross margin -26% to CHF 204m 1'000
– 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 EBIT
19

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 i
20

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 ki
21

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 contracts
22

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. 12'000 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 complexity
23

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 Unit
24

25. Custom Publishing
25

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 EBIT
26

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 verticals
27

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 /
entertainment
28

29. 3. Business Segments / Custom Publishing:
Key initiatives
“Strengthen existing foothold in Asian
Airline vertical and selective expansion into
other 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 market
29

30. Search & Find
30

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 EBIT
31

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 position
32

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.ch
of online properties under
3 000 000
3'000'000
roof
2'000'000
1'000'000
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. 3. Business Segments / Search & Find:
Key initiatives
“Leverage #1 market position in Directories in Switzerland with JV-partner Swisscom
into 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 2009
34

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. Digital & Marketing Services
36

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. 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 Switzerland
38

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 40 000
Sales 2009 , in EURM (compared with main competitor)
JV AS/PG
Trade Doubler
0 50 100 150 200 250 300 350
39

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. 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 Q1-2010
41

42. 4. Group Results
42

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 -42.1
43

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 Mio
44

45. Cause of change
Net result A 2008 -42.1
One Time Events 2008 -46.2
Comparable A 2008 4.2
Gross margin -83.2
Expenses 57.9
Depreciation 1.7
Associated -9.4
Financial result 2.5
Taxes 8.8
Minority interests 1.9
Comparable A 2009 -15.5
One Time Events 2009 -5.4
Net 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. 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 basis
46

47. Comparable expenses 2007-2010
CHF 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. Number of employees evolution
FTE
3'100
+31 Significant but also selective
3'000 FTE reduction which is about to
2'900
continue in 2010
2'800
2'700 -385
2'600 2'973 3'003 -114
2'500
2'400 2 618
2'618
2'505
2'300
2'200
2007 2008 2009 B 2010
48

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 1'101.8
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 1'101.8
Equity in % of assets 43% 39%
Net liquidity 4.8 -94.8
Bank debt 165.0 185.0
The group's balance sheet remains solid
The liquidity and debt structure were improved during 2009
49

50. Real Estate EBIT
CHF 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. Net financial result
CHF Mio 2009 2008
Result on loans and receivables 1.8 3.7
Result on marketable securities 4.2 -13.6
Result on available-for-sale securities -3.4 -36.4
Result on uncommitted net assets of employer's foundations 1.4 -2.3
Interest expenses -6.3 -8.7
Net currency exchange differences -1.0 2.6
Total -3.3 -54.7
51

52. Cash flow statements
CHF Mio Change
g 2009 2008
Cash 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 -5.0
Cash and cash equivalents as of 31 December - 28.7% 58.0 81.4
52

53. Consolidated statements of recognised income and expense
CHF Mio 2009 2008
Result -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 - -0.1
Other comprehensive income 7.5 -58.9
Total
T t l comprehensive income
h i i -3.1
31 -88.7
88 7
53

54. Consolidated statements of changes in equity
CHF Mio 2009 2008
Balance as of 1 January 2009 510.6 662.6
Total comprehensive income -3.1
3.1 -88.7
88.7
Increase in additional paid-in capital 0.1 0.3
Purchase of treasury shares - -42.3
Sale of treasury shares - 7.3
Share-based compensation 1.7 0.4
Dividends -2.8 -29.7
Net change in minority interests -46.0 0.7
Balance as of 31 December 2009 460.5 510.6
54

55. 5. Strategy Summary
55

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 CH
Strategy 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. 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 alone
Reorgani-
sation and CHF -55m
CHF -22m CHF -38m
cost
reduction
2007 2008 2009 2010
57

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% BAZ
Divestment Zürich Winterthur Medien
of non-core
assets 100% Stadt-
anzeiger
2007 2008 2009 2010
58

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 owners
Investments
in Growth
markets
2007 2008 2009 2010
59

60. 5. Strategy Summary: Turning media sales business around &
tapping into new digital growth markets (V/VI)
Investments in
growth markets
Divestment of
Di t t f Real estate: – Real estate 37% BAZ
Zürich in Winterthur Medien
non-core assets – 100% Stadt-
anzeiger Olten
Reorganisation CHF -22 Mio CHF -55 Mio CHF -38 Mio
and cost
reduction
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. 5. Strategy Summary: Turning media sales business around &
tapping into new digital growth markets (VI/VI)
Growing importance of online revenue
Online 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.at
140 700
120 600
100 500
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. 6. Board of Directors
62

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 Master's degree of Business and Economics from the
Norwegian School of Management (BI)
Dr. Andreas M. Schönenberger, Zurich (CH)
– Swiss citizen, born in 1965
– Google's 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
company's 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. 7. Outlook
64

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 i
65

66. Connecting media, advertisers and customers
C ti di d ti d t
Thank you for your attention
www.publigroupe.com
66

67. Connecting media, advertisers and customers
C ti di d ti d t
Backup slides
67

68. Consolidated income statements
CHF Mio Change 2009 2008
Revenue - 24.1% 1'609.1 2'120.6
Purchases - 25.4% -1'175.2 -1'575.5
Sales reductions - 27.3% -71.8 -98.8
Gross margin - 18.9% 362.1 446.3
Personnel expenses - 8.4% -289.9 -316.6
General and administrative expenses - 14.9%
14 9% -91.7
-91 7 -107.7
-107 7
Other income and expenses - 40.0% 27.4 45.7
EBITDA - 88.3% 7.9 67.7
Depreciation and amortisation - 11.6% -13.0 -14.7
Impairment loss - -8.2
82 -33.8
33 8
Share in result of associates - 8.8 20.8
Operating result (EBIT) - -4.5 40.0
Financial result -3.3 -54.7
Result before income tax - 46.9% -7.8 -14.7
Income tax expense - 81.5% -2.8 -15.1
Result of continuing operations - -10.6 -29.8
Result from discontinued operations - -
Result - -10.6 -29.8
Result attributable to :
- Minority interests - 16.3% 10.3 12.3
- Shareholders of PubliGroupe Ltd - -20.9
-20 9 -42.1
-42 1
68

69. Consolidated balance sheets
Assets
as of 31 as of 31
Decembe Decemb
CHF Mio Change 2009 2008
Cash and cash equivalents - 28.7% 58.0 81.4
Marketable and available-for-sale securities - 65.8 8.8
Receivables, accruals and taxes receivables - 1.7% 385.8 392.5
Assets held for sale 25.3 -
Current assets
C t t + 10 8%
10.8% 534.9
534 9 482.7
482 7
Land and buildings - 14.9% 83.0 97.5
Other tangible and intangible assets - 21.8% 54.3 69.4
Investments in associates - 20 4%
20.4% 255.8
255 8 321.5
321 5
Actifs financiers et impôts différés - 75.5% 32.0 130.7
Non-current assets - 31.3% 425.1 619.1
Total assets - 12.9%
12 9% 960.0
960 0 1 101.8
1'101 8
69

70. Consolidated balance sheets
Liabilities and equity
as of 31 as of 31
December December
CHF Mio Change 2009 2008
Short-term debts - 64.9% 65.0 185.0
Payables, accruals and taxes payables
P bl l dt bl - 19 1%
19.1% 297.4
297 4 367.6
367 6
Long and short term provisions, deferred taxes - 2.6% 33.9 34.8
Long-term debts - 103.2 3.8
Total liabilities - 15 5%
15.5% 499.5
499 5 591.2
591 2
Share capital - 2.5 2.5
Treasury shares - 40.0% -53.2 -88.6
Reserves - 9 6%
9.6% 467.5
467 5 517.4
517 4
Equity, shareholders of PubliGroupe Ltd - 3.4% 416.8 431.3
Minority interests - 44.9% 43.7 79.3
q y
Total equity - 9.8% 460.5 510.6
Total liabilities and equity - 12.9% 960.0 1'101.8
70

71. Cash flow from operating activities
CHF Mio 2009 2008
Result (10.6) (29.8)
Adjustments for non-cash items 8.4 60.1
Dividends paid to minority interests by group companies (46.7)
(46 7) (7.9)
(7 9)
Dividends received 66.5 16.7
Interest received 1.6 3.7
Interest 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) 28.2
Cash flows from operating activities (8.7) 43.8
71

72. Cash flow from investing activities
CHF Mio 2009 2008
Acquisitions of tangible assets (8.9) (19.0)
Disposals of tangible assets 17.5 66.4
Acquisitions 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 2.9
Disposals of associates 0.1 -
Investments i fi
I t t in financial assets
i l t (0.8)
(0 8) (15.8)
(15 8)
Divestments of financial assets 14.5 14.9
Taxes paid (0.6) (6.1)
Cash flows from investing activities 7.3 15.9
72

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