Half Year Presentation 2014 - Goldbach · Half Year Presentation 2014 August 20th, 2014 Michi Frank, CEO Goldbach Group / Lukas Leuenberger, CFO Goldbach Group / Alexander Duphorn,

Half Year Presentation 2014 August 20th, 2014

Michi Frank, CEO Goldbach Group / Lukas Leuenberger, CFO Goldbach Group / Alexander Duphorn, CEO Goldbach Media

2

/ New Executive Committee

/ Trust Seal: Goldbach receives certification for voluntary compliance

with the highest standards of data protection

/ swiss radioworld and Goldbach Audience enlarge their portfolios with

/ Disinvestment in Russia

/ Merger of Goldbach Interactive (Switzerland) AG und Goldbach Mobile AG

/ Media Trend Award: Goldbach Media (Switzerland) AG is best marketer

/ Media Trend Award: Goldbach Audience (Switzerland) AG is best online-marketer

/ 3 new TV channels with Goldbach Media:

Milestones Half Year 2014

© 2014 Goldbach Group

The International Setup of Goldbach Group

3

Offline:

Goldbach Media

(TV, Digital out of Home)

swiss radioworld

(Radio)

Online:

Goldbach Audience

Goldbach Interactive

Switzerland

Offline:

Goldbach Media (TV/Digital out of

Home)

Online:

Goldbach Audience


Austria

Online:

Goldbach Interactive (Search)

Germany

DACH

Online:

Goldbach Audience

Croatia

Online:

Goldbach Audience

Serbia

Online:

Goldbach Audience

Renderspace

Slovenia

Adriatic Central Eastern Europe (CEE)

Offline:

Goldbach Media (TV)

Online:

Goldbach Audience

Romania

Online:

Goldbach Audience


Poland


Headcounts in June 2014:

/ Total: 501

/ DACH: 310 (CH 225, excl. corporate)

/ Adriatic: 37

/ CEE: 108

4

Review Half Year 2014 - CEE

advertising market Poland

/ display advertising is on the same level

as previous year

Goldbach Poland

/ Goldbach Audience: maintaining its no. 1

position as independent sales house in terms of

reach and service quality

/ Goldbach Audience: launch of Digital out of

Home product

advertising market Romania

/ TV advertising market on similar

level as previous year

/ dumping policy of main competitors

in the Radio business

Goldbach Romania

/ Goldbach Media: under review

/ Goldbach Audience: under review


Sources: IAB, PWC

Goldbach Russia

/ disinvestment

5

Roadmap 2014 - CEE

advertising market Poland

/ uncertainty caused by Ukrainian crisis

Goldbach Poland

/ Goldbach Interactive: retreat from the business

/ Goldbach Audience: rebuidling new business

team

advertising market Romania

/ lower commercial advertising

investments are expected due to

election period

Goldbach Romania

/ Goldach Media: disinvestment

/ Goldbach Audience: disinvestment


6

Review Half Year 2014 - Adriatic

advertising market Slovenia

/ harsh general situation

Goldbach Slovenia

/ Renderspace: no. 1 digital agency

/ Goldbach Audience: new products, such as rich

media formats and RTB (real-time-bidding)

advertising market Croatia

/ largely dominated by TV

/ IPTV with most significant growth

Goldbach Croatia

/ Goldbach Audience: launch of Mobile

and Video Network


digital market Adriatic

/ growth in Serbia and Croatia

/ decrease in Slovenia

Goldbach Adriatic

/ well positioned to gain from growing digital

importance

Sources: IAB, SOZ, PWC

7

Roadmap 2014 - Adriatic

advertising market Adriatic

/ high share of digital advertising is

forecasted

/ fast growth of media market is

expected by 8.4 % annually

Goldbach Adriatic

/ stabilisation in progress

/ launch of Adriatic Production

Center (APC) in Serbia for agency

business


Sources: IAB, SOZ, PWC

8

Review Half Year 2014 - DACH

TV advertising market Switzerland

/ development slightly positive

Goldbach Switzerland

/ Goldbach Media: challenging situation (soccer

world championship, olympics)

/ swiss radioworld: weak start in Q1, recovery in

Q2

/ Goldbach Audience: growth in the product line

video

/ Goldbach Interactive: investments in the

expansion of the agency

TV and online Advertising market Austria

/ development slightly positive

Goldbach Austria

/ growing Goldbach Video Network

/ growing Digital out of Home network

/ growing Austrian Performance Network


search advertising market Germany

/ moderate growth

Sources: Focus, WIFO- Werbeklimaindex, Mediafocus

9

Roadmap 2014 - DACH

TV Advertising market Switzerland

/ continuation of the positive trend

Goldbach Switzerland

/ Goldbach Media: high demand in TV business

advertising market Austria

/ slightly higher growth

rate compared to HY1

Goldbach Austria

/ growing Mobile Portfolio

/ development of products and services


Search Advertising market Germany

/ moderate growth similar to HY1

Goldbach Germany

/ evaluation of market entry in new business

fields

Sources: Focus, WIFO- Werbeklimaindex, Mediafocus, Goldbach estimates

>> Goldbach Media (Switzerland)

The negative effects of decreased ratings with Kantar Media since 2013 had been

absorbed by extending inventory (by new channels and daytime breaks).

Status March ‘14:

Inventory and Revenue Development with Kantar Media

11

Source: Infosys+ 2013-2014; Telecontrol 2012; Net revenue and inventory value: Goldbach Media

Inventory

Gross Revenue CHF

Ratings

Telecontrol Kantar Media

Estimates

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

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r

De

ce

mbe

r

Janu

ary

Feb

ruary

Ma

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April

Ma

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June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

2012 2013 2014 2015

Ratings

Revenue Net

Inventory Value Gross


After absorbing decreaseing ratings within Kantar Media measurement by

additional inventory (daytime slots) and new channels revenues stay flat

12

Source: Infosys+ 2013-2014; Telecontrol 2012; Net revenue and inventory value: Goldbach Media

Inventory

Gross Revenue CHF

Ratings

Telecontrol Kantar Media

Estimates

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

Fe

bru

ary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

Janu

ary

Feb

ruary

Ma

rch

April

Ma

y

June

July

Augu

st

Septe

mb

er

Octo

be

r

No

ve

mbe

r

De

ce

mbe

r

2012 2013 2014 2015

Ratings

Revenue Net

Inventory Value Gross


Status August ‘14:

Revenue development stronger than forecasted

After absorbing decreasing ratings within Kantar Media measurement by additional

inventory (daytime slots) and new channels revenues stay flat

13 © 2014 Goldbach Group

Status August ‘14:

Revenue development stronger than forecasted

/ TV revenue of Goldbach Media could increase again in the first half year 2014

/ Ebit decrease in line with guidance

/ Slight decrease of margin of bigger channels

/ Future margin optimization will take place due to new products and channels

(7Maxx, Sat.1Gold, 5+, DOOH, VIDEO, new adformats)

/ Higher costs in 2014 (esp. research) due to research and fragmentation

/ Current costs are a stable basis for future growth

>> Financial Results HY 2014

© 2014 Goldbach Group 15

Summary Financial Results Half Year 2014 Key figures Goldbach Group

HY 2013 HY 2014

in TCHF IFRS IFRS

Net Revenues 220'533 216'924 -3'609 -1.6%

EBIT 13'008 9'690 -3'318 -25.5%

EBIT - Margin 5.9% 4.5%

EBIT (adjusted) 13'995 1) 9'690 -4'305 -30.8%

EBIT - Margin 6.3% 4.5%

Net Profit 2'624 1'106 -1'518 -57.9%

Net Profit - Margin 1.2% 0.5%

Net Profit (adjusted) 3'136 1) 1'288 2) -1'848 -58.9%

Net Profit - Margin 1.4% 0.6%

HY 14 vs. HY 13

Deviation

1)One-Time Impact 2013: Start-up cost Wilmaa Digital TV Box (EBIT CHF -1.0 Mio.; Net Profit CHF -0.5 Mio.)

2)One-Time Impact 2014: Loss on dispodal of GBI Russia (Net Profit CHF -0.2 Mio.)


Net Sales by Region In TCHF

DACH Central Eastern Europe Adriatic

Net Sales

Share

93.2% 96.5%

-

50'000

100'000

150'000

200'000

250'000

HY 2013 HY 2014

207'853 209'754

in T

CH

F

+1%

Net Sales

Share

4.3% 2.4%

-

1'000

2'000

3'000

4'000

5'000

6'000

7'000

8'000

9'000

10'000

HY 2013 HY 2014

9'487 5'275

in T

CH

F

-44%

Net Sales

Share

2.5% 1.0%

-

1'000

2'000

3'000

4'000

5'000

6'000

HY 2013 HY 2014

5'678 2'270

in T

CH

F

-60%


Net Sales by Productline & Relative Shares

In TCHF


Gross Profit & Gross Margin

In TCHF


Operating Expenses

In TCHF

IFRS adjusted


In TCHF

EBITDA EBIT

IFRS adjusted IFRS adjusted

EBITDA & EBIT


EBIT by Region (IFRS) In TCHF

DACH Central Eastern Europe Adriatic


Financial Result, Taxes, NCI (IFRS)

In TCHF


Balance Sheet

In TCHF


Equity, Equity Ratio

In mCHF


Cash Flow Statement Im mCHF

>> Outlook 2014

27

Key messages:

/ Year of transition -> strategic review

/ Concentration on core competences as a digital sales house

/ Success as an aggregator in increasingly fragmented markets

/ Assessing future expansion in various TV markets

/ Agency/Performance in selected markets

Confirmed guidance:

/ Stable net sales

/ Net profit similar to 2012

Goldbach Group Outlook 2014


GOLDBACH GROUP AG

Seestrasse 39

8700 Küsnacht

www.goldbachgroup.com

Michi Frank

CEO Goldbach Group AG

[email protected]

Lukas Leuenberger

CFO Goldbach Group AG

[email protected]

Alexander Duphorn

CEO Goldbach Media (Switzerland) AG

[email protected]

29

Disclaimer

Gro

wth

Rate

:

Gro

wth

Rate

:

+164%

+106%

+34% +2339%

+40%

+68%


All the opinions and forecasts contained in this presentation are expressed and

made exclusively by Goldbach Group. Opinions and forecasts are forward-looking

statements that use expressions such as "expect", "believe", "attempt", "estimate",

"intend", "assume", "try" and similar formulations. These statements express

Goldbach Group's intentions, views or current expectations and assumptions.

These forward looking statements are based on current plans, estimates and

forecasts made by Goldbach Group in good faith, but no claims are made for

their future accuracy. Forward-looking statements involve risks and uncertainties

that tend to be difficult to predict and that do not usually lie within Goldbach

Group's sphere of influence, or that of persons working with Goldbach Group.

It should be noted that actual events and consequences may differ from those

expressed or contained in the forward-looking statements, or turn out to be more

negative than expressly or implicitly assumed or described in this presentation.

This presentation does not constitute a recommendation to buy Goldbach Group

shares.

Documents

Half Year Presentation 2014 - Goldbach · Half Year Presentation 2014 August 20th, 2014 Michi Frank, CEO Goldbach Group / Lukas Leuenberger, CFO Goldbach Group / Alexander Duphorn,