07 03 2014 publi groupe fyr 2013

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PubliGroupePubliGroupe

Zurich, 07 March 2014Zurich, 07 March 2014

Financial results 2013Financial results 2013

1

Overview presentation order

Agenda item Presenter

Overview of FY 2013 figures, main developments, overview segment results

Arndt C. Groth: CEO

1

Key financials groupAndreas Schmidt: CFO

2

Conclusion & outlook 20143Arndt C. Groth: CEO

2

2

Balanced operating result –net result 2013 of CHF -5.9 million – in line with guidance

Arndt C. Groth Andreas Schmidt

CEO PubliGroupe CFO PubliGroupe

3

Group overviewFull-year results 2013

• Progress made in the second half-year 2013 allowed PubliGroupe to achieve a

balanced operating full-year result; net loss of CHF -5.9 million – results confirm

guidance of Nov. 2013

• Substantially reduced cost base at Media Sales / Publicitas; drop in revenue

due to much higher than expected print market declines in Switzerland;

implementation of strategy on track

• Search & Find, driven by the clear Swiss market leader local.ch, provided solid

operating results, relying on digital, future-oriented revenue

• Zanox net revenue grew by 5%, growth consumed by lower margins in the

affiliate domain and investments in network; growth companies Improve Digital

and Spree7 saw good growth

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4

1.6

50.2

0.8

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60

Operating result Net Result

2012 2013

285.1267.3

0

100

200

300

2012 2013

Overall performanceFull-year results 2013

Operating and Net Results, in millions of CHF

Net Revenue, in millions of CHF

-6%• Slightly positive break-even operating

result and net loss of CHF -5.9 million

• Persistently difficult market in

Switzerland with loss at Media Sales

main reason for the net loss

• Search & Find, mainly driven by the

market leader local.ch, provided solid

operating results based on digital,

future-oriented revenue

• Operating result of DMS was marked

by substantial development costs at

Improve Digital and Spree7

5

-16.1

22.4

6.1

-11.7-14.5

25.5

-0.5

-9.7

-20

-10

0

10

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Media Sales Search &Find

Digital &MarketingServices

Corporate &Others

2012 2013

Business segment summaryFull-year results 2013

Se

arc

h&

Fin

d

• Definition of strategy & management team

• Achievement of costs reductions: OPEX down

CHF -17.3 million (-11% vs. 2012)

• Implementation of new system solution

(Mediaspectrum)

Co

rpo

rate

&

oth

ers

DM

S

• Successful merger of white & yellow books

• Lower printing costs

• Strong growth in online & mobile

• Investments in young growth enterprises

• 2012 benefited from 6 months of Namics

result

• Continuous FTE reduction at headquarters

• Press investment position positive but lower

in line with weakness of Swiss print market

Me

dia

Sa

les Operating result, in millions of CHF

4

6

FY 2013 digital performanceDigital revenue continues to gain in importance

• Digital revenue grows across the Group in all segments 1

• Overall digital growth of 33% 2

• Media Sales online growth: 3%

• Continuing to focus growth initiatives and investments on digital media

1) Excl. Namics in 20122) Incl. Improve Digital not incl. in 2012

Online revenues in the main associates of PubliGroupe (not consolidated),

in local currency

in millions % 2012 2013

Local 100% (in millions of CHF) 13% 71.7 81.1

Zanox 100% (in millions of EUR) 5% 461.4 486.3

7

Loss at Media Sales; on operating level compensated by Search & Find

Segment Reporting

5

8

-16.1-13.5-14.5 -15.6

-20

-15

-10

-5

0

5


2012 2013

149.4134.6

020406080

100120140160

2012 2013

Media SalesFull-year results 2013



-10%

• Net revenue fell by 10%. Billings

dropped from CHF 895.4 million in

2012 to CHF 805.2 million in 2013

• Substantially reduced cost base is

CHF 17.3 million lower than 2012. The

reduction in 2013 resulted from lower

personnel expenses as well as a

reduction of office space

• International business grew by 8% in

net revenue

• At the end of 2013, headcount (FTE) at

847 compared to 1'066 at the end of

2012; 2/3 of reduction in staff from sale

of 51% of xentive to Mediaspectrum

9

Costs reductions in line with lower volumesCost measures of >CHF 17m not sufficient to compensate market decline

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2011 2012

1) WEMF figures -13.4 % in 2013 vs 2012.Including: daily, regional, weekly, Sunday, finance and business media

2013

• Operational expenses were

reduced by CHF 17.3 million

(minus 11%) against

previous year

• The reduction in 2013

resulted from lower

personnel expenses as well

as reduction of office space

• Stronger than expected

Swiss print market decline;

print net ad volume

excluding magazines and

special publications declines

~ 13% 1

• Strategy in execution,

focusing on necessary

improvement on the top-line

6

10

Strategic pillars

• Appointment of David Klement as CTO, started 2014,

completing the management team. Main responsibility:

development and introduction of Publicitas ad

exchange

• Renewal of partnerships and new partnerships (e.g.,

AZ Medien, CdT, FAO, Arena Cinema, Editoria Abril,

Globo, S1, Sweet Spot, Bloomberg TV & Digital, CBS)

• Implementation of systems solution of Mediaspectrum

on track. NZZ and Le Temps are first key partners

• Centralisation of European and Swiss back-office

• New pricing structure defined and already applied on

ongoing negotiations

• Rightsizing of organisation in Switzerland & Europe

completed resulting in 847 employees worldwide as of

December 2013

First results

Publicitas on track

First results indicate successful implementation of strategy

Full automation

Full portfolio

Variabilisation

Focus

Become efficient and cost

leader in marketing advertising

space

Offer the most relevant media

portfolio to advertisers

“Flexed” cost base to address

contract gains or losses

Focus on core activities

11

103.2115.9

0

20

40

60

80

100

120

2012 2013

Search & FindFull-year results 2013



+12%

• Operating result increased by CHF 3.1

million to CHF 25.5 million

• Considering entire (100%) business of

local.ch, the operating result for the

twelve months of 2013 decreased

slightly from CHF 52.6 million in 2012

to CHF 51.7 million in 2013

• Online business reached 41% of

consolidated revenue in 2013 (vs 34%

2012; 29% in 2011)

• At the end of 2013, the headcount

(FTE) was 549, up 37 from the

previous year

22.4

16.6

25.5

16.3

0

5

10

15

20

25

30


2012 2013

7

12

� JV since 1998

�One management since 11/2010

�Rebranding since 2011

Swisscom AG

LTV GelbeSeiten AGSwisscom

Directories AG

local.ch AG

51% 51%49%49%

100%

PUBLIGroupe SA

PubliGroupe & Swisscom

15+ years of successful cooperation

13

Local.chProfitability maintained while shift to online continues

• As of Dec 2013, 2/3 of order intake with digital products

• New local guide a success; merger of print products allow for substantially

lower printing costs

• 4.2 million monthly unique clients

Revenue (consolidation 100%), in millions of CHF

in millions of CHF % 2012 2013

C-Media -20% 86.1 68.8

E-Media 13% 71.7 81.1

Other -3% 51.1 49.7

Total revenue -4% 208.9 199.6

8

14

− Commercial success

- >CHF 200 m revenue on 100% basis

- ~25% EBIT margin

− More local

- city-specific start page

- improved search results

− More offers

− couponing offers

− booking restaurants

− deeper map integration

− Improved usability

− tablet optimised user interface

− autocomplete

− fault tolerance

local.ch: most popular search platform

New offers – extension of market leadership

15

5%10% 10%

16% 17% 18% 19%15%

18% 19%16% 15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2.0

2.5

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Nov Dez Jan Feb Mar Apr May Jun Jul Aug Sep Oct

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[mm

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2013

1 Source: Unique Netmetrix

local.ch with higher digital reachOutperformed against #2

9

16

local.ch No 1 in Mobile

Uncontested leadership

1 Source: Uniques Netmetrix - registered since Feb/2013

2012 2013

18%

22%25%

22%

17%

23%22%21%

24%26%

21%

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20%

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40%

50%

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100%

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20


2012 2013

7.0 6.0

20.7

5.8

0

10

20

30

40

2012 2013

other DMS namics Improve Digital

Digital & Marketing Services Full-year results 2013


DMS Net Revenue, in millions of CHF

-57%

• Operating result of CHF -0.5 million vs

CHF 6.1 million in 2012; net revenue

and net result lower due to Namics

sale in June 2012

• Substantial investments at Improve

Digital and Spree7; Improve Digital net

revenue grew 43% to CHF 5.8 million;

Spree7 operational as of July 2013

• At Zanox revenue growth allows to

cement position as leading

performance advertising network in

Europe

• DMS headcount (excluding Zanox) up

from 59 FTE in 2012 to 111 in 2013

27.7

11.8

10.3namics

5.5

10

18

461.4 486.3

0

100

200

300

400

500

600

2012 2013

ZanoxFull-year results 2013

Zanox EBITDA (100%), in millions of EUR

Zanox Net Revenue (100%), in millions of EUR

+5%

• Revenue growth despite competitive

landscape in affiliate domain;

confirmation of top position in Europe;

international expansion continues

• Zanox 5% growth in net revenue and

operational efficiencies largely

consumed by lower margins and

investments in network

• Successful entry into data

management business with

acquisition of Metrigo in 2013

• From a 100% perspective, Zanox net

revenue of EUR 486.3 million in 2013;

EBITDA reached EUR 20.5 million

28.0

20.5

0

5

10

15

20

25

30

2012 2013

19

Improve DigitalLeading European publisher trade technology

Proposition

Joelle Frijters (CEO) Janneke Niessen (CIO)

Clients Financials

Management Team

• #1 European Publisher Ad Exchange and SSP

• Offices in Benelux, Germany, UK, and Spain

• >40 FTE, mostly in tech and sales

• >100 premium publisher customers

• >250 connected demand-side partners, incl. all key DSPs

• State-of-art platform, fully RTA enabled, premium-format, mobile- / video-enabled, customisable private exchange

• Won several awards, including 2013 High Growth Awards, Deloitte Fast 500, Red Herring 100, Inspiring 50

91

75

2013

0.52

2012

0.46

Impressions (in Mill.)

eCPM (EUR)

48

34

20132012

Billing (EUR)

11

20

Spree 7

Transparent trading desk for independent advertising agencies

Proposition

Selection of clients/partners

Management Team

Dirk Fiebig(Vice President Technology &

Operations)

Victor Zawadzki(CEO)

• Young, Berlin-based growth company

• Trading desk for independent agencies and non-agency represented advertising customers

• Exclusive Mediamath partner in DACH

• Small, strong team of dynamic ad trade experts

• Aim to grow trade volumes, data usage, and eventually develop trade platform

Powered by

Milestones

• Fully operational since July 2013

• Signed 26 agencies to date, aiming to get to 50 in 2014

• Ran more than 100 campaigns in past 6 months; about 20-50 campaigns per month at present

• Strong focus and good progress on analytics / data

21

Key financials Group

Andreas Schmidt

CFO PubliGroupe

12

22

P&L Group

Net loss vs. large profit in 2012

* Billings represent the gross amounts billed to clients (including the value of ad space)

in millions of CHF 2013 2012

Billings * -7% 1'058.0 1'134.6

Net revenue -6% 267.3 285.1

Purchases 32% -22.5 -17.1

Gross profit -9% 244.8 268.0

Operating Expenses -9% -263.1 -289.0

Depr. & Amort. -6% -4.5 -4.8

Share in associates -14% 23.6 27.4

Operating result -48% 0.8 1.6

Financial result -98% - -1.8

Ordinary result - 0.8 -0.2

Non-operating result -96% 2.7 66.1

Income taxes -67% -4.0 -12.0

Minority interests 46% -5.4 -3.7

Net Result - -5.9 50.2

Headcount (FTE) -137 1'565 1'702

23

Non-operating resultPractically no non-operating items in 2013


Gain on Namics sale - 10.3

Gain on SOP sale - 3.1

Gain on xentive sale 0.4 -

Real Estate - Gain on sale - 49.6

Real Estate - Rental inc./Cost & depr on properties 2.4 4.4

Other (mainly rent elimination) -0.1 -1.3

Non-operating result 2.7 66.1

13

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Operating result by segment

Higher Search & Find profit allows break-even result


Media Sales -14.5 -16.1

Search & Find 25.5 22.4

Digital & Marketing Services -0.5 6.1

Corporate & Others -9.7 -11.7

Eliminations Group - 0.9

Operating result 0.8 1.6

25

Headcount by segmentFewer FTEs at Media Sales and Group

End December End December

FTE 2013 2012

Media Sales 847 1'066

Search & Find 549 512

Digital & Marketing Services 111 59

Corporate & Others 58 65

Total Headcount 1'565 1'702

14

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Financial Result

Balanced result 2013


Interest income 0.9 0.5

Income from marketable securities and investments 2.5 1.3

Financial income 3.4 1.8

Interest expenses -1.9 -1.3

Loss on marketable securities and investments -1.1 -1.5

Financial expenses -3.0 -2.8

Net currency exchange differences -0.4 -0.8

Net financial Result - -1.8

27

Cash flow statementSubstantially lower cash position due to share buy-back, dividend & loss


Cash and cash equivalents as of 1 January 162.2 109.3

Cash flows from operating activities -21.7 22.0

Cash flows from investing activities -30.8 63.1

Cash flows from financing activities -52.3 -31.8

Effect of exchange rates on cash and cash equivalents -0.9 -0.4

Cash and cash equivalents as of 31 December 56.5 162.2

• Reasons for lower operating cash: 1/3 growth-related , 1/3 market conditions-related; 1/3 one-time effects

• Reasons for lower investing cash:mainly financing of Digital Window acquistion by Zanox

• Reasons for lower financing cash: extraordinary dividend payment and share buy-back

15

28

Group balance sheet

Reduced balance sheet after share buy-back

as of 31 December as of 31 December


Current assets 292.4 379.2

Non-current assets 163.7 153.0

Total assets 456.1 532.2

Current liabilities 286.9 250.9

Non-current liabilities 22.4 72.6

Equity, shareholders of PubliGroupe Ltd 135.0 195.6

Minority interests 11.8 13.1

Total liabilities and equity 456.1 532.2

Equity in % of assets 30% 37%

29

Conclusion & Outlookby the CEO

Arndt C. Groth

CEO PubliGroupe

16

30

• Lean and focused HQ

structure to control and

very selectively support

assets

• Operational efficiencies

realised within key

assets

• Divestment of non-core

assets

• Focus on technology-

oriented companies in

the media & advertising

sector

�

Accomplishments since 2012Progressing along three distinct paths

1.

Streamlining of

operations

2.

Focusing on

core assets

3.

Developing

tech-orientedassets

• Reduction of overhead costs; currently 29 FTE at

headquarters in Lausanne, further reductions planned

• Appointment of new CEO at Publicitas with turnaround

experience; continued rightsizing at Media Sales

• At local.ch/Zanox efficiency programs in place, with

effects to be realised in 2014 and 2015

• Sale of 3 buildings in Bern & Lausanne

• Sale of Namics, IT consultancy firm

• Sale of 51% of Xentive to Mediaspectrum, Boston-

based company offering premier software solutions

• Sale of further non-strategic assets planned

• Acquisition of Improve Digital, leading European

supply-side platform operator

• Successful acquisition of data management platform

(DMP) Metrigo through Zanox

• Establishment of Spree7 together with MediaMath as

a leading demand-side platform (DSP) provider that

caters to marketers’ media buying needs

• Establishment of automated media marketplace at

Publicitas, together with Mediaspectrum

�

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ongoing

ongoing

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ongoing

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31

Key agenda points General Assembly 2014

• The Board of Directors decided to schedule the introduction of the principle

of "one share – one vote" for the Annual General Meeting to be held on 29

April 2014

• At the next Annual General Assembly (AGM), the Board will propose an

adaptation of the Articles of Association in conformity with the "Ordinance

Against Excessive Compensation in Listed Companies“

• The Board of Directors will propose a dividend of CHF 2.0 per share,

resulting in a dividend payment of about CHF 4.4 million

• Further details will be communicated with the invitation to the General

Meeting in the beginning of April

17

32

Conclusion and Outlook

Full year results 2013

• Progress made in the second half-year 2013 allowed PubliGroupe to achieve a

balanced operating full-year result

• Divestment of non-core assets or assets that are not providing satisfactory

financial returns will continue as will the adaptation of the holding

• In particular at Publicitas, the further execution of strategy of an increasingly

automated sales platform across all media categories, as announced in August

2013, remains the key focus in order to return to the path of profitability

• In 2014 Search & Find should provide results in the same order of magnitude

as 2013; DMS will slightly improve its results. At Zanox several measures are

in place to capitalize on its leading market position

• PubliGroupe will maintain focus on building a Group of leading advertising

technology-oriented companies

33

Backup Slides

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34

Consolidated income statement Backup

* Billings represent the gross amounts billed to clients (including the value of ad space)


Billings * 1'058.0 1'134.6

Net revenue 267.3 285.1

Purchases -22.5 -17.1

Gross profit 244.8 268.0

Personnel expenses -183.9 -211.6

General and administrative expenses -81.1 -78.8

Depreciation of tangible assets -2.2 -3.8

Amortisation of intangible assets -2.3 -1.0

Other operating income 2.3 1.9

Other operating expenses -0.4 -0.5

Share in result of associates 23.6 27.4

Operating result 0.8 1.6

Financial result - -1.8

Ordinary result 0.8 -0.2

Non-operating result 2.7 66.1

Result before income taxes and minority interests 3.5 65.9

Income taxes -4.0 -12.0

Result before minority interests -0.5 53.9

Minority interests -5.4 -3.7

Result attributable to shareholders of PubliGroupe Ltd -5.9 50.2

Earnings per share (in CHF) -2.7 21.2

35

Consolidated balance sheetAssets

Backup

as of 31 December as of 31 Decemberin millions of CHF 2013 2012

Cash and cash equivalents 56.5 162.2

Marketable securities 13.5 12.9

Trade receivables 172.9 167.4

Other receivables 30.1 20.9

Accrued income and prepaid expenses 19.4 15.8

Current assets 292.4 379.2

Investment properties 32.7 34.0

Owner-occupied properties 0.6 0.1

Equipment 4.8 7.0

Intangible assets 4.1 5.0

Investments in associates 79.5 79.3

Financial assets 39.3 25.3

Deferred tax assets 2.7 2.3

Non-current assets 163.7 153.0

Total assets 456.1 532.2

19

36

Consolidated balance sheetLiabilities and equity

Backup

as of 31 December as of 31 Decemberin millions of CHF 2013 2012

Current debts 42.6 0.9

Trade payables 114.3 122.2

Other payables 26.5 29.3

Accrued expenses and deferred income 97.7 89.5

Current provisions 5.8 9.0

Current liabilities 286.9 250.9

Non-current debts 0.2 40.3

Share in negative equity of associates 12.3 22.8

Deferred tax liabilities 3.9 2.2

Non-current provisions 6.0 7.3

Non-current liabilities 22.4 72.6

Total liabilities 309.3 323.5

Share capital PubliGroupe Ltd 2.3 2.5

Treasury shares -34.5 -35.0

Capital reserves -0.3 -0.3

Retained earnings 167.5 228.4

Equity, shareholders of PubliGroupe Ltd 135.0 195.6

Minority interests 11.8 13.1

Total equity 146.8 208.7

Total liabilities and equity 456.1 532.2

37

Cash flows from operating activities Backup


Result before minority interests -0.5 53.9

Share in result of associates -23.6 -27.4

Depreciation and amortisation (incl. non-operating) 5.5 6.1

Changes in provisions (incl. deferred income taxes) -2.7 2.7

Gain/loss on disposals of fixed assets 0.1 -49.7

Gain/loss on disposals of subsidiaries and associates -0.4 -13.4

Adjustments for other non-cash items 2.8 13.4

Dividends received 16.7 21.6

Interest received 0.6 0.4

Interest paid -1.6 -1.4

Taxes paid -5.2 -5.6

Changes in trade receivables -7.1 25.3

Changes in other receivables, accrued income and prepaid expenses -9.7 12.2

Changes in trade payables -8.8 -14.0

Changes in other payables, accrued expenses and deferred income 12.2 -2.1

Cash flows from operating activities -21.7 22.0

20

38

Cash flows from investing activities Backup


Acquisitions of tangible assets -1.2 -2.9

Disposals of tangible assets - 81.4

Acquisitions of intangible assets -5.5 -1.4

Acquisitions of subsidiaries, net of cash acquired -0.2 -16.1

Disposals of subsidiaries, net of cash disposed of - 6.9

Acquisitions and capital increases in associates -7.6 -

Disposals of associates - 3.7

Investments in financial assets -17.3 -4.1

Divestments of financial assets 5.4 -

Taxes paid -4.4 -4.4

Cash flows from investing activities -30.8 63.1

39

Cash flows from financing activities Backup


Increase in bank debts 2.4 -

Repayment of bank debts -0.9 -

Repayment of non-current debt -0.3 -10.2

Purchase of treasury shares -25.2 -1.8

Sale of treasury shares 0.2 1.1

Increase in capital reserves - 0.1

Decrease in capital reserves - -5.2

Dividend paid to shareholders of PubliGroupe Ltd -22.1 -8.9

Dividends paid to minority interests by Group companies -6.4 -6.9

Cash flows from financing activities -52.3 -31.8

Investor Relations

07 03 2014 publi groupe fyr 2013