Pres annual results 2011 publi groupe 9 march
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Transcript of Pres annual results 2011 publi groupe 9 march
AnnualResults 2011esu ts 0Net profit 2011 of CHF 14.6 million; unchanged dividend of CHF 6unchanged dividend of CHF 6
1
Overview presentation order
1. Hans-Peter Rohner: Overview of 2011 results & key developmentsCEO & Chairman of the BoardCEO & Chairman of the Board
2. Andreas Schmidt: Key financials groupChief Financial OfficerChief Financial Officer
3. Hans-Peter Rohner: Segment resultsCEO & Chairman of the Board
4. Andreas Schmidt: Key financials Group under Swiss GAAP FERChief Financial Officer Process of changing of reporting standardg g p g
Update sale real estate portfolio
5. Hans-Peter Rohner: Conclusion & outlook 2012CEO & Ch i f th B dCEO & Chairman of the Board
6. All Q&A
2
Overview 2011 figuresg
Good results in growth segments; Media Salessegments; Media Sales unsatisfactoryunsatisfactory
Hans-Peter RohnerCEO & Chairman of the Board
3
2011 Group results L fi bl EBIT
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Lower net profit; stable EBIT
Volume decline in the order of previous 12% l 9% i
Sales and gross margin, in millions of CHF
years: -12% sales; -9% gross margin (at constant fx -9% and -7%)
EBIT stable vs previous year
1'474 1'304 1'500
2'0002010 2011
EBIT stable vs previous year
Net profit of CHF 14.6 million significantly under the level of the
345.3315.6
-
500
1'000
g yprevious year (CHF 42.6 million), also due to much lower positive one-off factors than in 2010
Sales Gross margin
EBIT and Net profit, in millions of CHF
2010 2011
Good results in growth segments Search & Find and Digital & Marketing Services; unsatisfactory result in Media
30.532.6
42.6
30
40
502010 2011
Services; unsatisfactory result in Media Sales
14.6
0
10
20
EBIT N t fit
4EBIT Net profit
2011 segment resultsV d l f S h & Fi d Z fl d i DMS l
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Very good result for Search & Find; Zanox not reflected in DMS result
EBIT, in millions of CHFUnsatisfactory result EBIT, in millions of CHF
dia
Sale
s
27 7 28.6
402010 2011Loss impacted by goodwill impairment of
CHF 5.1 m in TV business and one-time means deployed with PublimediaIncisive measures under way to ensure
2010 2011
Me
10 1
27.7
20
30y
that segment will achieve a level of sustained profitability corresponding to the level of capital invested in it
rch&
Fin
d
2.6 2.72.7
10.1
0
10Good result; EBIT higher than previous year due organisational efficiencies and strong performance in online & mobileTurnover of local.ch in the online and
Sear -0.4
-10.9-10
Turnover of local.ch in the online and mobile sectors will exceed print media in near future
Good top line development; Zanox with
DM
S
-20Media Sales Search &
FindDigital &
MarketingServices
Corporateand others
20% growth in local currencyVery good performance of Zanox and Namics not fully reflected in DMS under current reporting standard
Media Sales
Search & Find
Digital & Marketing Services
Corporate and others
5
p g
Online revenues with strong growthG d i h lid d d i d li
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Good progress with consolidated and associated online revenue
Online Revenues, in millions of CHF Consolidated online revenue grows b 15 5% i l ti i ti th
Online Revenues, in millions of CHF
700
800
PubliGroupe Associated companies
710657
by 15.5%; incl. participations growth represents 18% at constant fx
Online revenue reaches 40% of total
PubliGroupe Associated companies
500
600
700
493
657business revenue; in terms of gross margin, online represents 50%
Growth mostly from Zanox and
380
517548
300
400Namics: Zanox CAGR 29% since creation of the joint venture in 2007; Namics with 14% of continuous organic growth since 2004
113 140 162
-
100
200organic growth since 2004
Media Sales with CHF 50 m online sales
Total revenue 2010:CHF 1’906 m (online 34%)
Total revenue 2009:CHF 1’898 m (online 26%)
Total revenue 2011:CHF 1’775 m (online 40%)
2009 2010 2011
6
( %)( %) ( %)
Update on CEO recruitmentS l d f 3Q 2012
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Start planned for 3Q 2012
Important strategic decisions with regard to the development of the organization taken in 2011: end of dual mandate of Chairman of the Board of Directors and CEO in 2012, which was created for a “limited transitionalof Directors and CEO in 2012, which was created for a limited transitional period” in April 2009
Recruitment of new CEO search within and outside the Group now in the pfinal phase: announcement planned in April 2012, start expected in Q3 2012
End of double mandate of Hans-Peter Rohner who will continue to serve as Chairman of the Board of Directors, subject to re-election at the Annual General Meeting on 25 April 2012
7
Key financials Groupy p
Well capitalised;lid h flsolid cash flow
Andreas SchmidtChief Financial Officer
8
P&L GroupL l l d l fi i l l
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Lower net result mostly due to lower financial result
Ch % 2011 2010in millions of CHF
Change % 2011 2010
Revenue -12% 1'304.0 1'474.2
Gross margin -9% 315.6 345.3
Expenses -7% -278.2 -300.5
EBITDA 17% 37 4 44 8EBITDA -17% 37.4 44.8
EBIT -6% 30.5 32.6
Financial result - -3.5 23.9
Taxes -35% -4.7 -7.2
Non-controlling interests 15% -7.7 -6.7
Net Result -66% 14.6 42.6
9
Extraordinary items 2011I i di
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Important gains on divestments
in millions of CHF
Net Result 2011 - Nominal 14.6
Divestment 15.4
Impairments -7.7
Restructuring -0 7Restructuring -0.7
Others -1.1
Total non recurring elements 5 9Total non recurring elements 5.9
Net Result 2011 - Comparable 8.7
10
Net result – causes of change1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Significantly lower comparable result
42 6NET RESULT 2010 42.6
26.6
16.0
NET RESULT 2010
One Time Events 2010
COMPARABLE 2010
10.9
2.1
29.7 Gross margin
Expenses
Depreciation
8.2
3.6
2.1p
Associated
Financial result
8.7
0.5
2.9Taxes
Minority interests
COMPARABLE 2011
14.6
5.9One Time Events 2011
NET RESULT 2011
11-10 -5 0 5 10 15 20 25 30 35 40 45 50CHF mio
Net financial result1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Last year’s financial result affected by sale of Edipresse
in millions of CHF 2011 2010
Result on loans and receivables 1.3 1.4
Result on marketable securities -0.4 7.7
Result on available-for-sale securities 0.9 17.0
Result on uncommited net assets of employer's foundations -0.5 -
Changes in fair value of contingent consideration 1.1 1.6
I t t 2 6 3 7Interest expenses -2.6 -3.7
Net currency exchange differences -3.3 -0.1
Total 3 5 23 9Total -3.5 23.9
12
Cash flow statementS h i i d d i d i f b k d b
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Strong cash position at year end despite reduction of bank debt
Change 2011 2010
in millions of CHF
Cash and cash equivalents as of 1 January 77% 102.6 58.0
Cash flows from operating activities -53% 13.8 29.6
Cash flows from investing activities -48% 50.3 97.0
Cash flows from financing activities -25% -58.9 -78.7
Eff t f h t 1 5 3 3Effect of exchange rates - 1.5 -3.3
Cash and cash equivalents as of December 31 7% 109.3 102.6
13
Group balance sheetS lid b l h i f d
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Solid balance sheet secures strategic freedom
in millions of CHF Change as of 31 december 2011 as of 31 december 2010in millions of CHF Change as of 31 december 2011 as of 31 december 2010Currents assets 3% 428.5 416.7Non-current assets -21% 351.1 444.2
Total assets -9% 779.6 860.9Current liabilities -11% 263.8 297.9Non-current liabilities -40% 71.5 118.8Equity, shareholders of PubliGroupe Ltd. - 409.3 410.8Non-controlling interests 5% 35 0 33 4Non controlling interests 5% 35.0 33.4
Total liabilities and equity -9% 779.6 860.9
Equity in % of assets 53% 48%
N t h t t li idit 124 118Net short-term group liquidity 124 118
Bank debt 50 93
Equity ratio improved by 5% vs 2010
Bank debt strongly reduced
14
Key segment resultsy g
Two out of three t ithsegments with
good resultsgood resultsHans-Peter RohnerCEO & Chairman of the Board
15
Media Sales
16
Media SalesU i f l d h
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Unsatisfactory result; measures underway to strengthen segment
Sales, in millions of CHFSales volume down 13%, strongly Sales, in millions of CHF
11811026
1000
15002010 2011affected by abandonment of TV
business amounting to CHF 61 m
EBIT result impacted by CHF 5.1 m;
2010 2011
0
500
yimpairment on TV business; pioneering, future-oriented measures employed for the online platform “AdMarket” led to significantly higher one off operating
Gross margin and EBIT, in millions of CHF
2010 2011
Salessignificantly higher one-off operating expenditures with Publimedia
Solid results in the local & regional business in CH where turnaround is
Gross margin and EBIT, in millions of CHF
2010 2011
188.6161.3
100150200250
business in CH where turnaround is confirmed; somewhat lower international volumes mostly due to fx effects
I 2012 f M di S l d DMS
2010 2011
-0.4-10.9-50
050
100
Gross margin EBIT
In 2012, for Media Sales and DMS (SVBmedia), the revenue disclosed will be only the commission earned instead of the total billing of ad space
17
Gross margin EBITof the total billing of ad space
Media SalesE i d i d t f t ff ti 2011
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Economic and industry factors affecting 2011
External factors:Unchanged Media Sales revenue split by geographic
Economic slowdown in 2nd semester affected print adsNegative development in job ads
scope, contracts & media over the last 5 years despite significant changes in overall volume 1
Media Sales I t ti l
~20% ~20% Negative development in job adssegment (print & online)Price pressure for large accounts acrossall media & market segments
International
Local &
Regional~30% ~30% g
Internal factors:Full-year effect of lost of „regie“ contracts(Edipresse & Mittellandzeitung after 1 yr
Media Sales Switzerland
~80% ~80%
Regional
( p g yof transition period)Significant one-time cost for re-engineering and process standardization
National ~50% ~50%
projectsPublimedia continues to lose market share due to attractive financial incentive f di t b kiNote
20112007
18for direct bookings Note:
1) Split approximate and illustrative, results not being reported by local/regional/national scope;
Media Sales (1)U d f d d i I ’ D
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Update status of measures announced during Investors’ Day
1st PILLAROptimization measures being launched:
Become yet leaner and more adapted to market (more sales driven)STRENGTHEN
the traditionalLeaner and more
Intervention and enrichment of print offerings along three areas: Switzerland, international, central functions
the traditional print business
more flexible cost structure
Grow digital footprint:2nd PILLAR
Further investments in digital initiatives
Develop new digital products to drive
ACCELERATE the digital agenda& explore new
Higher share of di it lDevelop new digital products to drive
growthp
opportunities digital turnover
19
Media SalesS h di i l b i
1st PILLAR
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Strengthen traditional business
Improvement Project Objectives
Swiss business
Process harmonization
Improvement areas
Project
Harmonization of sales and back office processes across all branches in order to realize efficiency gains
Objectives
business harmonization
Centralization of sales back office
order to realize efficiency gains
Realization of cost savings by consolidating the sales back office functions of branches physically and virtually within three regional centers
Sales effectiveness
R li ti f t i th h lid ti f i t ti l
Improving the effectiveness of the sales force by introducing a value-oriented segmentation and go-to-market model
International business
Central cost
International sales network
General&
Realization of cost savings through consolidation of international operations and regional structures. Deepening focus on industry segments in order to offer increased specialization to clients
Optimization of administrative efficiency and external spend in all areas,Central cost General&Administrative
IT
Optimization of administrative efficiency and external spend in all areas, centralizing corporate functions
Reduction of IT cost and complexity through simplification of the IT landscape and optimization of the IT delivery model
20
landscape and optimization of the IT delivery model
Media SalesS l f d b k ffi i i i h d
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
1st PILLARSales force and back office optimization shows good progress
Project Achievements Next stepsProgressProject
• New processes for order entry and processing designed
Achievements Next steps
• New processes in use in all branches by April 1st 2012
Progress
Process designed• Trainings for sales force
have started
Process harmonization
• Physical consolidation of first back-office sales functions in branches
• Development of an inter-
• Mobile office concept will be rolled out in waves and will leverage existing models within the organization Centralization
branch collaboration model to realize efficiency gains
Project start:Sales Project start: March 2012
Sales effectiveness
21
Media SalesF h i i i i h fi hi
1st PILLAR
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Further cost optimization with first achievements
P j t A hi t N t tP
International
Project
• Sale of P-Australia• New management in growing
Achievements
• Strategic and structural adjustments in the Americas
i
Next stepsProgress
International sales network
APAC region• Strategic adjustments in
European operations
region• Overall strategy development
focusing on industry segments
General &Administrative
• Savings potential in several areas detailed
• Spend allocation optimized with regards to effectiveness
• Implementation of spend reduction and new allocation
and efficiency
• Target IT landscape and underlying IT delivery model
• Finalize core-system selection process
IT developed
• Clear roadmap defined
22
Media SalesG di i l d
2nd PILLAR
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Grow digital agenda
Achievements Next stepsInitiatives Achievements Next stepsInitiatives
• ad4quality: Strengthened relationships with key Swiss market playersp y
• ad4max: New inventory secured from Bluewin and Microsoft
• Strong local digital sales growth• passengerTV: further partnerships secured
• Continue and expand initiatives to increase digital competence in all branches
Digital portfolio
• Short list of technology providers defined• Head of operations on board
• Select technology partner• Coordination with DMS
demand side platformSell Side Platform SSP
• Recruitment process under way for key account managers
demand side platform• Publisher acquisition
program begins March
Platform SSP(RTB enabled)
23
Media Sales
24
Search & FindS f l i i li & bil i d fi bili
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Sales, in millions of CHF
2010 2011
Successful migration to online & mobile, increased profitability
Sales, in millions of CHF
136.8 141.0
80100120140160
2010 2011Sales volume grows marginally by 3%; online and mobile sales grow by 36%, almost outweighing 14% loss in traditional b siness
2010 2011
020406080business
EBIT result up for the first time since 2007 due to operational efficiencies achieved ft t t i d iti b d
Gross margin and EBIT, in millions of CHF
2010 2011
Salesafter restructuring and positive one brand strategy (local.ch)
In 2011 order intake for the first time Gross margin and EBIT, in millions of CHF
2010 2011
98.0 95.5
6080
100
120larger (51%) for online and mobile than for print
Local.ch most prominent search app in 28.627.7
0
20
40
Gross margin EBIT
Switzerland after Google Maps according to Nielsen Net Ratings, allowing it to consolidate leadership position
25
Gross margin EBIT
Search & FindE bli h d #2 i i f G l i h k
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Established #2 position after Google in search market
3.5NielsenNielsen Unique audience1 20112
1.52.02.53.03.5
0.00.51.0
Goo
gle
e M
aps
luew
in
ocal
.ch
arch
.ch
onbu
ch
arch
.ch
arch
.ch
Sei
ten
ctor
ies
uide
.ch
ATE
24
ocal
.ch
QYP
E
help
.ch
G
Goo
gle B l o
sea
Tele
fo
tel.s
ea
map
.sea
Gel
be
Dire
c
swis
sgu GA
map
.lo h
N t t iN t t i
11% 9% 7% 8% 4% 5% 7% 8% 2% 1% 3% 4%
50%
NetmetrixNetmetrix Unique clients3 2011 / 2012
-50%
0%
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
261 Nielsen / Netratings2 Average unique audience throughout 20113 Source: Netmetrix / Unique clients
Search & FindS lid hi h k i i i
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Mobile app performance 2011/2012
Solid usership that keeps growing in importance
U 10
127.0
Users use app 10 times a month on
avg.2
8
10
5.0
6.0
1 4 m
63.0
4.01.4 m
downloads3
600k
2
4
1.0
2.0600k
apps in use1
00.0Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
271 On all platforms (iOS,Android,Blackberry,W7,Nokia) . Source: amount of searches by mobile devices to our server 2 Average usage per device = usage of mobiles app1 / mobile unique users1
3 Source: Apple / amount of searches by mobile devices to our server
Search & FindN i i i i l d ll l f
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
New initiatives planned across all platformsTotal Swiss local advertising marketCHF m, 2010
Zoom on online business models (excl. online press)CHF m, 2010
Others80
search ch
gate24.ch15Others 14
Others 320
290100110625 11010089090 29026085
ti li tigreen
Deindeal 15Groupon 10
Google16
search.ch16
CCO 19
Blick 140Others 205
Others 45
Renovero 14 Lead Generation
“SC Di t i ”
verticalisationCouponing
Booking 3
green book
video
Website creation² & content120
Local.ch54
NZZ 190
APG 52Energy 10
PG exc. local10
Online content
Maturity“SC Directories”
110
localwelcome
UXdesign
video
360°
website
homegate.ch 20
swissfriends.ch 10jobscout24.ch 10
immoscout24.ch 10
54
20 Minuten etc. 240Various
GoldbachMedia 25
Various Goldbach media 30
SF1, SF2, Sat1, ProSieben 15PG exc. local 10
Classifieds
home.ch
welcomenew mobile
offering
website
Source : Publisuisse Mediaguide, Swisscom, OC&C analysisLocal.ch Tamedia Ringier Publigroupe Other
Press (Print&Online)
DirectMarketing1
TV, radio,outdoor
Printed Directories
OnlineSearch &
Find
281. We assumed that half of the direct marketing is local 2. Website creation market sizing assumptions: 15% of SME not owning a website create one,
15% of those with website rebuild it in a given year, average annual spend: CHF 3.500; 3. Emerging segment in 2010, estimated at CHF 1m
Media Sales
29
Digital & Marketing ServicesG f
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Good operational results not reflected in results
Sales, in millions of CHF2010 2011Contraction of Sales volume by 9% (by
Sales, in millions of CHF 2010 2011
139.6 127.7
80100120140160
Contraction of Sales volume by 9% (by 1% without currency impact), due to lower sales at SVBmedia, linked to traditional business (Zanox sales not
2010 2011
0204060
Sales
(consolidated)
Above market growth at Zanox( 20%) f ll d b th i iti f Sales(+20%), fuelled by the acquisition of M4N in the Netherlands and geographic expansions, sales reaching CHF 543 5 m
Gross Profit and EBIT, in millions of CHF
2010 2011EBIT Pro Formareaching CHF 543.5 m
Namics 11% growth: CHF 44.8 m
Pro-forma EBIT grew by 7% vs. 2010,
50.7 52.5
30 040.050.060.0
EBIT Pro Forma
g yfrom CHF 14.8 m to CHF 15.8 m, and by 19% without currency impact
All DMS it h fl iti
2.6 2.70.0
10.020.030.0
G P fit EBIT
14.8 15.8
30All DMS units are cash flow positive Gross Profit EBIT
Digital & Marketing Services G
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
PG two largest digital companies capturing double digits market growth
Zanox Revenue 2004 - 2011 (in EURm) Performance Marketing - Zanox
300
400
500 CAGR 07-11: 29%
- Above market growth achieved both organically and via acquisitions (Digital Window in 2009, Buy.at in 2010 M4N in 2011)
0
100
2002010, M4N in 2011)
- CAGR 29% since creation of the joint venture
- Approaching the EUR 500 m mark of
Digital solutions - NamicsNamics Revenue 2004 - 2011 (in CHFm)
2004 2005 2006 2007 2008 2009 2010 2011Approaching the EUR 500 m mark of transaction commissions
- 14% of continuous organic growth since 2004
- Blue chip clients in CH, DE30
40
50 CAGR 14%
Blue chip clients in CH, DE
- Resilient to the last market downturn10
20
2004 2005 2006 2007 2008 2009 2010 2011
31
2004 2005 2006 2007 2008 2009 2010 2011
Key Financials Group:y p
Update on accounting change; real estate
Andreas SchmidtChief Financial Officer
32
Reporting standard change to Swiss GAAP/ FERO i
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Overview
As from 2012 onwards, PubliGroupe will change its financial reporting from IFRS to the Swiss GAAP/ FER standard. This change will have several important consequences:
Proportional consolidation
Revenue presentationp
Goodwill accounting
Other changes
No changes planned in terms of transparency level
With the standard change to Swiss GAAP/ FER PubliGroupe's financialWith the standard change to Swiss GAAP/ FER, PubliGroupe s financial reports will more accurately describe the value creation, the performance and the development of the Group's three operating segments
33
Reporting standard change to Swiss GAAP/ FERI
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Important consequences
Proportional consolidationThe application of the proportional consolidation for the local.ch partnership with Swisscom and the Zanox joint venture with Axel Springer will allow a higher transparency for the performance and development of these two core businesses
Revenue presentationThe net revenue presentation (commission earned instead of total billing of ad space) from 2012 onwards reflects the shift of the Media Sales business away from a predominantly exclusiveonwards reflects the shift of the Media Sales business away from a predominantly exclusive representation business towards a simple sales representation. In addition, the net presentation better reflects the weight of a decreased Media Sales within PubliGroupe
Goodwill accountingGoodwill of acquisitions will be offset at acquisition date resulting in a lower equity in the balance sheet and no further write-offs of acquired intangibles in the profit & loss statement
Other changesThe standard change will impact the employer foundations presentation, sales expenses
34activation, and some other, but less material positions
Reporting standard change to Swiss GAAP/ FERB l h i (i di i di d)
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Balance sheet impact (indicative, not audited)
CHF Mio IFRS Swiss GAAP/ FER Major Changes 2)20112011 2011 1)
+ proportional zanox/ Swisscom Directories/ local - proportional LTV- goodwill/ intangibles off-set at acquisition date - non-activation of sales expense
Current assets 429 487
Non-current assets 351 118p
+ proportional zanox/ Swisscom Directories/ local - proportional LTV- employer foundation not on balance sheet- non-activation tax credits
Total assets 780 605Total assets 780 605
+ proportional zanox/ Swisscom Directories/ local - proportional LTV
+ proportional zanox/ Swisscom Directories/ local
Current liabilities 264 347
Non-current liabilities 72 95- proportional LTV
Equity, PG shareholders 409 160Non-controlling interest 35 3 - minority share of LTV to Swisscom
Total liabilities and equity 780 6051) indicative restatement 2011, not audited2) major changes, minor impacts not mentioned
35
Reporting standard change to Swiss GAAP/ FERP fi & l i (i di i di d)
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Profit & loss statement impact (indicative, not audited)
CHF Mio IFRS Swiss GAAP/ FER Major Changes 2)
2011 2011 1)2011 2011 1)
- net revenue presentation Publicitas/ SvBMedia+ proportional zanox/ Swisscom Directories/ local - proportional LTV+ proportional zanox/ Swisscom Directories/ local - proportional LTV
ti l / S i Di t i / l lE
316
2 8
372
319
Revenue 1304 606
Gross margin
- proportional zanox/ Swisscom Directories/ local + proportional LTV- non-activation of sales expense
EBITDA 37 53+ non-activation of sales expense+ amortisation of intangibles from acquisitions
Depreciation & amortisation -24 -12
Expenses -278 -319
- proportional zanox/ Swisscom Directories/ local + proportional LTV
Impairment loss -7 0 + no annual impairment checks in Swiss GAAP
- share of zanox/ Swiscom Directories/local- share of associated press participations
EBIT 31 41
Share in associates 23
EBIT 31 41+ share of associated press participations+ proportional zanox/ Swisscom Directories/ local - proportional LTV - proportional zanox/ Swisscom Directories/ local + proportional LTV
ti ti f t dit
Taxes -5 -13
Financial result -4 2
- non-activation of tax credits- deferred taxes on intangibles amortisation
Non-controlling interests -8 -1 + minority share of LTV to Swisscom
Net result of PG shareholders 15 291) indicative restatement 2011, not audited
36
) ,2) major changes, minor impacts not mentioned (expressed as impact on net result)
Reporting standard change to Swiss GAAP/ FERTi i
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Timing
PubliGroupe intends to implement segment and standard change in 1st semester 2012:
Announcement of intended change: 1st Dec
Presentation of new accounting details:
Planned change of SIX segment:
March 2012
May 2012g g
First financial report in Swiss GAAP/FER:
May 2012
August 2012
37
PubliGroupe’s real estate assets4 l d i S i l d l f l
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
4 assets located in Switzerland currently for sale
Bern Lausanne - Mon-Repos Lausanne - Mousquines Lausanne - Toises
1971 | 4'551m2 1974 | 3'089m2 1980 | 4'266m2 1962 | 2'345m2
Total rentable area14'251 m2
Note: Year of construction | Rentable surface area
38
Real estateTi i
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Timing
PubliGroupe plans to divest 4 assets in 2012:p p
− 3 buildings in Lausanne: Mon-Repos, Mousquines, Toises
− 1 building in Bern
PubliGroupe intends to distribute a large portion of the proceeds from the sale of the properties to its shareholders
One main objective is to execute the sales and the return of proceeds to shareholders in the most tax-efficient manner
The sale process has already been initiated
A frame for a share buy-back via put-options will be proposed to the general assembly on April 25 2012on April 25, 2012
39
Conclusion and tl k 2012outlook 2012
Hans-Peter RohnerCEO & Chairman of the Board
40
Status quo key decisions on Group level CEO h l l d d l d f S 2012
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
CEO search almost concluded, start planned for Summer 2012
Corporate Governance
New CEO search near completion; start planned for Q3 2012HP Rohner to serve until new CEO is in post; will remain as Chairman of the Board
PubliGroupe execution of its strategic cornerstones
Governance
Sale real estate
HP Rohner to serve until new CEO is in post; will remain as Chairman of the Board, subject to re-election at the Annual General Meeting on 25 April 2012.
PubliGroupe plans to divest 4 assets in 2012: 3 Lausanne buildings, 1 in BernSale proceeds used as return for shareholders and partly for debt reduction
Change accountingstandard
Sale proceeds used as return for shareholders and partly for debt reductionBalance sheet to remain very solid
By means of a pro rata consolidation and by switching from IFRS to Swiss GAAP FER accounting standards, PubliGroupe able to present most important holdings standard g , p p p gmore clearly in financial reportingIn 2012, for Media Sales and DMS (SVBmedia), the revenue disclosed will be only the commission earned instead of the total billing of ad space
Dividend The Board of Directors will propose to the next General Meeting of Shareholders on 25 April 2012 in Lausanne the distribution of the amount of CHF 6 per share, composed of a dividend of CHF 3.80 and of CHF 2.20 that will be distributed tax-free from reserves from paid-in capital. This dividend corresponds to around 40% of the net proceedsmade in the year under review from sales of property and participations and
41
made in the year under review from sales of property and participations and demonstrates the solidity of the Group.
PubliGroupe profile under new standard“A diff i l”
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
“A different animal”
„Old“ PG under IFRS(Revenue: CHF 1‘304 m)
„New“ PG under Swiss GAAP FER(Revenue: CHF 606 m)(Revenue: CHF 1 304 m) (Revenue: CHF 606 m)
IFRS standard
World22%
Swiss GAAP FER standard
World56%22%
CH
56%
CH 44%
Swiss Gaap standard (estimation)IFRS standard
78%
Online57%
(estimation)IFRS standard
Online12%
Print 43%Print
4288%
Note: Swiss GAAP FER with quota consolidation & revenue disclosed according to commissions earned instead of the total billing of ad space for Media Sales and DMS (SVBmedia)
Outlook S lid f h i i i f i b i
1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook
Solid prospects for growth segments; optimization of print business
1. Media Sales to focus on growing online 3. Search & Find will continue its double1. Media Sales to focus on growing online sales in Switzerland & abroad, reducing administrative costs, harmonizing processes and IT systems
3. Search & Find will continue its double migration from print to online & mobile; solid perspectives to consolidate strong market position and increase profitability
4. PubliGroupe under new operational leadership as of 3rd quarter 2012, further developing Group motto “Marketing. More.
2. DMS will further capitalize on growth engine Zanox with its double-digit growth
Effective.”
Good f rther gro th is e pected in all online b sinessGood further growth is expected in all online business across all segments where further investments are
envisioned. Traditional lines of business – especially the print business of Media Sales – is undergoing further restructuring that will improve profitability but affect
43restructuring that will improve profitability but affect immediate prospects because of restructuring costs
Back-up slides
44
Comparable expenses by segment Backup
in millions of CHF Change 2011 2010
Search & Find 7% -65.9 -61.6
Media Sales -8% -162.8 -177.7Media Sales 8% 162.8 177.7
Digital & Marketing Services 4% -51.8 -49.9
Corporate & Others 1) -16% -21.2 -25.3
Eliminations -18% 8.3 10.2
Comparable expenses -4% -293.4 -304.3
Non recurring elements 15 2 3 8Non recurring elements - 15.2 3.8
Total expenses -7% -278.2 -300.5
1) includes Custom Publishing
45
Consolidated income statement Backup
in millions of CHF Change 2011 2010Revenue -12% 1304.0 1474.2
Purchases -12% -933.3 -1056.6
Sales reductions -24% -55.1 -72.3
Gross margin -9% 315.6 345.3Personnel expenses -8% -221.9 -241.2
General and administrative expenses -2% -79.0 -80.3
Other income and expenses 8% 22.7 21.0
EBITDA -17% 37.4 44.8Depreciation and amortisation -10% -23.6 -26.1
Impairment loss -6.6 -2.0
Share in result of associates 47% 23.3 15.9
Operating result (EBIT) -6% 30.5 32.6Operating result (EBIT) 6% 30.5 32.6Financial result - -3.5 23.9Result before income tax -52% 27.0 56.5
Income tax expense -35% -4.7 -7.2
Result 55% 22 3 49 3Result -55% 22.3 49.3
Result attributable to:
- Non-controlling interests 15% 7.7 6.7
Sh h ld f P bliG Ltd 66% 14 6 42 6
46- Shareholders of PubliGroupe Ltd -66% 14.6 42.6
Consolidated balance sheet Backup
Assets
as of 31 december
as of 31 december
in millions of CHF Change 2011 2010
Cash and cash equivalents 7% 109.3 102.6
Marketable and available-for-sale securities -6% 14.4 15.3
Receivables, accruals and taxes receivables -8% 274.5 298.8
A t h ld f l 30 3Assets held for sale - 30.3 -
Current assets 3% 428.5 416.7
Land and buildings -54% 34.9 75.6
Other tangible and intangible assets -23% 56.4 72.9g g
Investments in associates 2% 236.3 232.7
Financial assets and deferred tax assets -63% 23.5 63.0
Non-current assets -21% 351.1 444.2
Total assets -9% 779.6 860.9
47
Consolidated balance sheet Backup
Liabilities
as of 31 december
as of 31 december
in millions of CHF Change 2011 2010
Current debts - 0.2 -
Payables, accruals and taxes payables -12% 255.1 289.7
Long and short term provisions, deferred taxes -9% 27.8 30.4
N t d bt 46% 52 2 96 6Non-current debts -46% 52.2 96.6
Total liabilities -20% 335.3 416.7
Share capital - 2.5 2.5
Treasury shares -17% -43.9 -52.6easu y s a es % 3 9 5 6
Reserves -2% 450.7 460.9
Equity, shareholders of PubliGroupe Ltd - 409.3 410.8
Non-controlling interests 5% 35.0 33.4
Total equity - 444.3 444.2
Total liabilities and equity -9% 779.6 860.9
48
Cash flow from operating activities Backup
in millions of CHF 2011 2010
Result 22.3 49.3
Adjustments for non-cash items 2.5 -14.1
Dividends paid to non-controlling interests by Group companies -6.0 -9.1
Dividends received 16.1 15.0
Interest received 1.3 1.4
Interest paid -3.1 -4.2
Taxes paid -5.6 -8.3
Use of provisions -4.4 -7.2
Working capital changes -9.3 6.8
Cash flows from operating activities 13.8 29.6
49
Cash flow from investing activitiesBackup
Cash flow from investing activities
in millions of CHF 2011 2010
Acquisitions of tangible assets -2.4 -3.6
Disposals of tangible assets 14.3 24.1
Acquisitions of intangible assets -11.6 -14.3
Disposals of marketable securities 0.4 4.4
Acquisitions of subsidiaries, net of cash acquired -2.3 -3.4
Acquisitions of associates - -2.0
Disposals of subsidiaries, net of cash disposed of 11.5 0.1
Disposals of associates 0 3 22 7Disposals of associates 0.3 22.7
Investments in financial assets -1.0 -7.0
Divestments of financial assets 41.1 76.6
Taxes paid - -0.6
Cash flows from investing activities 50.3 97.0
50
Cash flow from financing activitiesBackup
Cash flow from financing activities
in millions of CHF 2011 2010
Increase /(decrease) in bank debts - -65.0
Increase in long-term debt 0.2 -
Decrease in long-term debt -43.0 -7.0
Capital contribution from non-controlling interests - 0.1
Purchase of treasury shares -4.7 -1.5
Sale of treasury shares (Share-based payments) 5.2 0.2
Acquisition of non-controlling interests -2.6 -5.6
Increase in additional paid-in capital 0 1 0 1Increase in additional paid-in capital 0.1 0.1
Dividend paid to shareholders of PubliGroupe Ltd -14.1 -
Cash flows from financing activities -58.9 -78.7
51
Standard change - Main accounting changesIFRS P/L S i GAAP FER P/L
Backup
IFRS P/L versus Swiss GAAP FER P/L
Company IFRS P/L Swiss GAAP P/LCompany IFRS P/L Swiss GAAP P/Lwith proportional method
LTV Gelbe Seiten AG 1) All P/L lines presented at 100% 1) All P/L lines presented at 51%
2) Minus one line "non-controlling interests" at - 49%
2) NO line "non-controlling interests"
Swisscom Directories AGand local ch AG
One line at 49 % in the EBIT(share in result of associates)
All P/L lines presented at 49%
and local.ch AG
Zanox AG One line at 47.5 % in the EBIT(share in result of associates)
All P/L lines presented at 47.5%
52
Standard change - Main accounting changesG d ill i C i li i f l f
Backup
Goodwill accounting + Capitalisation of sales force costs
Goodwill IFRS Swiss GAAP FERGoodwillAccounting
IFRS Swiss GAAP FER
Balance Sheet Purchase price allocation process to intangibles and residual goodwill
No PPA process for intangibles.Offset of acquired goodwill with equity at the date of the acquisition, with a theoretical calculation of amortization over 5 years in the notes
Profit and Losses Depreciation of intangibles No yearly amortisation, but goodwill p gNo straight line amortisation of goodwill
y y , gconsidered in the profit and losses at the time of the exit from the consolidation scope
Capitalisation of sales force costs IFRS Swiss GAAP FER
Search & Find Sales commissions incremental to the Sales commissions are recognisedSearch & Find Sales commissions incremental to the contacts acquisition are recognised as intangible assets and depreciated when revenue is realised (over three years)
Sales commissions are recogniseddirectly through the P/L
53
Swiss GAAP/ FERSwiss GAAP/ FER
Revenue and gross margin, in millions of CHF
F ll t ti b i
1'304 1'500
2'000IFRS FER Estimation
For all representation business (mainly Media Sales and SvBMedia) only commission instead of billings are reported as revenues
372.5315.6
606 500
1'000
The proportional consolidation will impact all lines of the P&L and
-
Revenue Gross marginEBIT and Net profit, in millions of CHF
IFRS FER Estimation
increase revenues, gross margin and EBIT (and taxes)
The results (EBIT and Net profit) will
28.930.5
47.0
30
40
50
60IFRS FER EstimationThe results (EBIT and Net profit) will
increase because of the elimination of the PPA amortisation
14.6
0
10
20
30
54EBIT Net profit
Swiss GAAP/ FERC lid d i
Backup
Consolidated income statement
2011 2011IFRS FERIFRS FER
in millions of CHF estimateRevenue 1304.0 606.0Purchases -933.3 -233.5Sales reductions 55 1Sales reductions -55.1 -Gross margin 315.6 372.5Personnel expenses -221.9 -256.0General and administrative expenses -79.0 -89.3Other income and expenses 22 7 25 8Other income and expenses 22.7 25.8EBITDA 37.4 53.0Depreciation and amortisation -23.6 -12.4Impairment loss -6.6 -Share in result of associates 23 3Share in result of associates 23.3Operating result (EBIT) 30.5 40.6Financial result -3.5 2.2Result before income tax 27.0 42.8Income tax expense -4.7 -13.3Income tax expense 4.7 13.3Result 22.3 29.5
Result attributable to:- Non-controlling interests 7.7 0.6
55
Non controlling interests 7.7 0.6- Shareholders of PubliGroupe Ltd 14.6 28.9
Swiss GAAP/ FERC lid d b l h
Backup
Consolidated balance sheet
AssetsAssets2011 2011IFRS FER
in millions of CHF estimatein millions of CHF estimateCash and cash equivalents 109.3 127.5Marketable and available-for-sale securities 14.4 14.4Receivables, accruals and taxes receivables 274.5 314.4Receivables, accruals and taxes receivables 274.5 314.4Assets held for sale 30.3 30.3Current assets 428.5 486.6Land and buildings 34.9 34.9Other tangible and intangible assets 56.4 23.9Investments in associates 236.3 49.5Financial assets and deferred tax assets 23.5 10.1N t t 351 1 118 4Non-current assets 351.1 118.4Total assets 779.6 605.0
56
Swiss GAAP/ FERC lid d b l h
Backup
Consolidated balance sheet
LiabilitiesLiabilities2011 2011IFRS FER
in millions of CHF estimatein millions of CHF estimateCurrent debts 0.2 0.3Payables, accruals and taxes payables 255.1 335.9Long and short term provisions, deferred taxes 27.8 22.3Long and short term provisions, deferred taxes 27.8 22.3Non-current debts 52.2 83.6Total liabilities 335.3 442.1Share capital 2.5 2.5Treasury shares -43.9 -43.9Reserves 450.7 201.8Equity, shareholders of PubliGroupe Ltd 409.3 160.4N t lli i t t 35 0 2 5Non-controlling interests 35.0 2.5Total equity 444.3 162.9Total liabilities and equity 779.6 605.0
57