ENIRO Q3 REPORT

2013-10-23

Johan Lindgren, CEO

Mattias Lundqvist, CFO

Cecilia Lannebo, Head of IR

01 Johan Lindgren

CEO

3

Eniro – The local search company

“In the digital value chain Eniro is an aggregator:

a search company that filters and organizes local

information“

4

CEO summary

Continued strong mobile growth – “Mobile first”

Launch of mobile search words & extended mobile packages

As earlier communicated, revenues in the quarter negatively impacted by:

Weak development in Norway

Quarterly seasonality that hampers order intake and cash-flow

Multiscreen revenues set to come back to growth in Q4 2013

Adjusted EBITDA 2013 at least in line with last year. Reduction of cost base

in 2014 of SEK 100 M, generates restructuring costs in Q4 of SEK 35 M.

5

Strategic decisions taken

Print phased out in 2014 and (Eniro, Gule Sider, Krak and Panorama Firm)

becomes completely digital – focus & efficiency (Q2 last distribution Gula

Sidorna)

Print revenues 2014 from local books some SEK 250 M

Further actions to improve efficiency and time to market

Closing down of two offices in Voice business

Reduction of employees in Q4 is set to lower cost base 2014 by SEK

100 M

Restructuring cost in Q4 2013 expected to SEK 35 M

New long-term target for net debt/EBITDA – not to exceed 2 (earlier 2.5)

Long-term dividend policy:

At least 30% of net income when Net Debt/EBITDA<2.0

6

Mobile search revenues increased 82% organically

Mobile searches of total searches on products-, services and categories

continues to increase 33%

Multiscreen revenues were down organically 3% y/y (+5% excluding

Norway)

Multiscreen revenues increased to 79% (70) of total ad revenues

Total revenues were down 10% y/y

Organic decline 8% (-6% excluding Norway)

Cost reductions SEK 71 M in Q3

EBITDA was SEK 225 M (261)

EBITDA margin of 26.2%

Operating cash-flow was SEK -69 M (25), but in line with last year for 9M

Q3 key developments

7

Financial development Q3 2013

857

225 90

-69

2 519

-500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Revenues EBITDA Net Profit Operating CashFlow

Net Debt

SEKm

Q3 2012 Q3 2013

-10%

-12%

-14% +32% -94M

8

Revenue development per country

0

200

400

600

800

1 000

1 200

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

SEKm

Sweden Norway Denmark Finland Poland

9

Group revenues and EBITDA-margin

0%

5%

10%

15%

20%

25%

30%

0

200

400

600

800

1 000

1 200

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

SEKm

Revenues EBITDA-margin

10

Mobile – fastest growing search segment

Strong market position within mobile

advertising

Mobile revenues increased 79% to

SEK 68 M in Q3

Mobile search 8% of total revenues

in Q3

We expect mobile revenues to

double in 2013 to SEK 300 M (147)

Target of SEK 900 M in revenues in

2015

Growing traffic and database content

11

Traffic

There are 6,5 M unique users

(browsers) per week visiting Eniro

properties

Mobile search accounts for 33 percent

of total product and company searches

Database content

There are 2,2 M active searchable

companies in Eniro database

There are 11,500 registered web shops

690 000 web addresses

Our sales force, of some 1,500

employees, is an important source for

quality and accurate content

% Million

Traffic development, total and mobile

0

5

10

15

20

25

30

35

0

5

10

15

20

25

JAN-13 MAR-13 JUN-13 SEP-13

Total searches (company, maps, name & number) (M permonth)

Of which searches on mobile devices*

Share company, product searches on mobile (%)

* Mobile searches incl. mobile internet, apps and searches

from surfing on mobile devices (including tablets)

12

Positioned to growth

Total market value Sweden ~SEK 9bn 2013E

Total market growth Sweden 9% in 2013E

Market growth in the media segments Eniro is present in is estimated to 6-10 % 2013*

*Note: Estimated growth from IRM

113%

20% 9%

1% -1%

-40%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Mobile Searchwords

TotalInternet

Banners OnlineCatalogue

PrintedCatalogue

SEKm

Market value 2013E Growth (y/y) 2013E

Swedish relevant market value

13

Highlights Print phased out in 2014 and all core brands becomes digital

Reorganization to improve time-to-market, productivity and

cost

Financial targets

* mobile revenues of SEK 900 M in 2015

* net debt/EBITDA not to exceed 2 (former guidance 2.5)

* adjusted EBITDA for 2013 at least in line with 2012

Focus areas going forward

14

Continued focus on:

Product mix transition to support revenue growth

Cost efficiency

EBITDA and bottom-line profitability

Operating cash flow

Financial position

02 Mattias Lundqvist

CFO

Development Net debt / EBITDA

16

0

1

2

3

4

5

0

2 000

4 000

6 000

8 000

10 000

2006 2007 2008 2009 2010 2011 12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2

X SEK million

Net Debt EBITDA Net Debt/EBITDA

13 Q3

17

Revenue bridge Q3 2013

Adjusted Currency

effects

Reported

revenues

9M 2012

Divested

business

Voice Reported Organic

baseline

Acq. Desktop Moved

publications

Print Campaign Other

-3% -8% +1%

Divested operations, currency and moved publications gave a total effect on revenues of

SEK -24m in Q3 which equals an decrease of 1%

Ex. Eniro Norway total revenues declined -6%

29

47 27 31

850

924

7

-10%

-8%

7

857

9

7

948

7 10

Mobile

Total revenue development

Organic revenue development

18

Cost savings in Q3 2013

Total savings SEK 236m in 9M 2013, of which SEK 85 M in Q1, SEK 80 M in Q2,

and SEK 71 M in Q3

Savings include reductions in Staff of SEK 31 M, Print and Paper of SEK 6 M and

Consultants of SEK 12 M

2.150

2.300

2.250

0

1.950

2.000

2.100

2.050

2.200

30

1130

Divested

0

66

80

85

8

Organic

baseline

2.216

Net

Savings Q2

7

71

Net

Savings Q3

Net

Savings Q4

1.927

1.993

11

Operating

cost 9M

2012

2.163

2.257

Adj

Operating

cost 9M

2013

22

Net

Savings Q1

53

Currency

effect

2.257

2014-236

-223

Reported

cost 9M

2013

2.015

Acquired

22

Including acquisitionsCost ex 3rd party3’rd party cost

19

Change in Net debt

Operating cash flow in Q3 decreased to SEK -69 M (25)

Operating cash flow 9M 2013 SEK 122 M (138)

Net debt/ adjusted EBITDA 2.6 (2.9)

Analysis of interest bearing net debt

Q3 2013 Q3 2012 YTD 2013 YTD 2012 2012/13 FY 2012

SEK M Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec

Opening balance -2 453 -2 887 -2 704 -3 535 -2 863 -3 535

Operating cash flow -69 25 122 138 283 299

Acquisitions and divestments -2 1 39 27 82 70

Share issue - -2 - 376 0 376

Translation difference and other changes 5 0 24 131 -21 86

Closing balance -2 519 -2 863 -2 519 -2 863 -2 519 -2 704

Net debt /adjusted EBITDA, times 2,6 2,9 2,6 2,9 2,6 2,8

20

Financial commentary

Amortizations

Re-classification of the Norwegian trademarks Gule Sider and Ditt Distrikt,

from indefinite to a limited time frame of 5-10 years.

Annual amortization of some SEK 95 M

Investments

Expectation of investments for full year 2013 approx. SEK 150 M

Cash-flow & Working capital

Slightly negative in 2013

Q3 seasonally weak due to summer vacations

Voice

Further efficiencies to partly compensate for Voice market decline

21

Outlook

Mobile revenues is expected to reach SEK 900 M in 2015

Adjusted EBITDA 2013 at least to be in line with 2012

Long-term Eniro expects to grow in line with the advertisement market

Long-term net debt/EBITDA not to exceed 2x

Positive cash flow from operations

Long term dividend policy: at least 30% of net income when

Net Debt/EBITDA<2.0

Investments in 2014 approx. SEK 150 M

ENIRO Q3 REPORT

Appendix

23

Financial commentary

Amortizations

Depreciable intangible assets that arose in connection with the acquisition of

Findexa

2005 was fully amortized by December 2012

Lowering amortizations by SEK 283m 2013 vs. 2012. Recognized in marketing

cost (reported Q3 marketing cost lowered y/y by SEK 37 M)

Taxes

Paid tax will be lower in H2 2013 since Eniro's tax payments primarily take

place in H1

24

Refinancing – terms and conditions

Loan facility

SEK 3bn, were of SEK 250 M in RCF

Three years with an extension to four years, on the condition that Eniro replaces

SEK 800 M of bank loan with a corporate bond

Amortizations

Bank loan expected to decrease with some SEK 375 M during 2013

Planned amortizations for 2014-2016 approx. SEK 375 M annually

Interest rates

Base rate Stibor plus 375bp (lowered to 300bp at Net debt/EBITDA below 2x)

Timing

Loan facility came into effect end of Q2 2013

•

25

Multiscreen – Q3

Total revenues decreased by 3%

Organic revenues decreased by

3%

0

100

200

300

400

500

600

700

Q1 Q2 Q3 Q4

SEKm Revenues - Multiscreen

2012 2013

-3%

26

Total revenues decreased by 9%

Organic revenues decreased by

6%

Local search – Q3

0

100

200

300

400

500

600

700

800

900

Q1 Q2 Q3 Q4

SEKm Revenues - Local Search

2012 2013

-9%

27

Voice – Q3

Total revenues decreased 12%

Organic revenues decreased 16%

EBITDA SEK 66 M (73)

EBITDA margin of 40% (39)

0

50

100

150

200

250

Q1 Q2 Q3 Q4

SEKm Revenues - Voice

2012 2013

-12%

28

Revenues Organic revenue by category

Q3 2013 Q3 2012 YTD 2013 YTD 2012 2012/13 FY 2012

% Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec

Desktop search -10 -4 -5 -3 n.a. -3

Mobile search 82 171 94 128 n.a. 116

Campaign products 14 18 7 23 n.a. 26

Multiscreen revenues -3 2 2 3 n.a. 3

Print -20 -30 -31 -30 n.a. -33

Other products -28 16 -15 -1 n.a. -14

Local search -6 -6 -5 -7 n.a. -9

Voice -16 -17 -11 -15 n.a. -13

Total organic development -8 -8 -6 -8 n.a. -10

Revenues by country

Q3 2013 Q3 2012 YTD 2013 YTD 2012 2012/13 FY 2012

SEK M Jul-Sep Jul-Sep % Jan-Sep Jan-Sep % Oct-Sep Jan-Dec

Sweden 399 443 -10 1 236 1 366 -10 1 749 1 879

Norway 228 266 -14 742 870 -15 1 018 1 146

Denmark 133 134 -1 356 368 -3 513 525

Finland 50 61 -18 159 184 -14 224 249

Poland 47 44 7 143 120 19 223 200

Total revenues 857 948 -10 2 636 2 908 -9 3 727 3 999

29

EBITDA overview

EBITDA by revenue area

Q3 2013 Q3 2012

YTD

2013 YTD 2012 2012/13 FY 2012

SEK M Jul-Sep Jul-Sep % Jan-Sep Jan-Sep % Oct-Sep Jan-Dec

Local search 168 187 -10 475 531 -11 721 777

Voice 66 73 -10 196 196 0 279 279

Other -9 1 -42 -59 -63 -80

Total EBITDA 225 261 -14 629 668 -6 937 976

Items affecting comparability

Restructuring costs 16 12 42 29 61 48

Other items affecting

comparability 1 0 1 -4 -43 -48

Total adjusted EBITDA 242 273 -11 672 693 -3 955 976

30

Summary of Q3 2013

Highlights during the quarter

Mobile growth 82%

All core brands becomes digital (Eniro, Gule Sider, Krak, Panorama Firm)

Reorganization to improve efficiency and lower cost base

Focus areas/expectations going forward

Top-line growth

Cash-flow und profitability

Mobile first

Improved efficiency and fastened go-to-market delivery