FINANCIAL RESULTS HY1 2011FINANCIAL RESULTS HY1 2011

PubliGroupe shows net profit 2011 of CHF 14 9 million –PubliGroupe shows net profit 2011 of CHF 14.9 million

operating result (EBIT) improved – higher online revenue

1

Overview presentation order

Agenda item Presenterg

Overview of 2011 figures & main developments

& o er ie segment res lts

Hans-Peter Rohner:

CEO & Chairman of the Board1

& overview segment results CEO & Chairman of the Board

Key financials group Andreas Schmidt:

Chief Financial Officer2

Conclusion & outlook 2011 Hans-Peter Rohner:

CEO & Chairman of the Board3

CEO & Chairman of the Board

2

OVERVIEW HY1 2011 FIGURES1 OVERVIEW HY1 2011 FIGURESMore efficient organisation offsets drop in topline;

solid Search & Find; strong DMS and Zanox

Hans-Peter Rohner

CEO & Chairman of the Board

3

HY1 2011 group results Net result up 8% on a like for like basis

1

2

3

Net result up 8% on a like-for-like basis

� Net result lower as first half of 2010 was strongly influenced by non-recurring one-off elements; operating result (EBIT) improved 23% 1 000

HY1 2010 HY1 2011

Sales and gross margin, in millions of CHF

result (EBIT) improved 23%.

� On a like-for-like basis, HY1 2011 net result up 8% to CHF 7.6 million (HY1 2010: CHF 7 million), operating result up 17% to CHF 7.9 million (HY1 2010: CHF 6.8 million), owing again to a significantly lower cost base

714.1637.5

600

800

1,000 -11%

-7%), g g g yof CHF 9.8 million.

� Sales lower due to currency effects and smaller volumes in the traditional business areas, especially print and TV, online growth continues.

153.4 142.2

0

200

400

Sales Gross margin

%

� Mixed picture for segments:

– Media Sales: negative EBIT mainly due to complete amortisation of goodwill of TV (CHF 5.1 million)

– Search & Find’s solid EBIT affected by investments 40

HY1 2010 HY1 2011

EBIT and net profit, in millions of CHF

Sales Gross margin

yin home.ch, marketing, structural adjustments

– Strong DMS with EBIT of CHF 4 million, mainly due to strong performance of Zanox and Namics

� Despite current economic woes and difficulty of 11.3

26.6

13.8 14.920

30

40

+23%

-44%

Despite current economic woes and difficulty of forecasting the macro economic development, PG expects improvement of last year’s operative result (EBIT) for the full year 2011. 0

10

EBIT Net profit

4

HY1 2011 business segment summaryEBIT up 23% helped by one time profits with Corporate

1

2

3

EBIT up 23%, helped by one-time profits with Corporate

EBIT, in millions of CHF� EBIT lower mostly because of complete TV

amortisation of goodwill

� EBITDA in line with previous year, even slightly

s

p y , g y

higher reaching CHF 0.4 million

� Publicitas branch network Switzerland with positive

results for the first half year

� International: business suffers under currency

impact and some shifts in budgets from the 1st to the

Med

ia S

ale

s

9.48 810

15

HY1 2010 HY1 2011

p g

2nd semester

� Comparable expenses down 14%

& � EBIT lower owing to significant investments

� Traditionally profiting from a much stronger second

9.4

2.6 3.0

7.2

4.0

8.8

5

10

Searc

h

Fin

d � Traditionally profiting from a much stronger second

half in terms of sales, full-year profits should be at

least in the order of last year’s results

EBIT b tt b f t ti l

0

DM

S

� EBIT better because of strong operational

performance at Zanox and Namics, the two most

important assets

� EBITDA of Zanox +18% to reach EUR 13.2 million

-3.7

-6.2

-10

-5

&S C

Co

rpo

rate

& o

thers � Continued divestment of non-strategic assets in

China (Emphasis Video Entertainment, City Media,

Huashang Media Group) lead to one-time profits at

corporate level

Media

Sales

Digital &

Marketing

Services

Search

& Find

Corporate

& others

5

HY1 2011 online performanceStrong online growth driven by Zanox and Namics

1

2

3

Strong online growth – driven by Zanox and Namics

� Online revenue consolidated in PubliGroupe

numbers: +13% to CHF 73 million; +17% at Online sales, in millions of CHF

constant exchange rates.

� Online revenue incl. participations: +8% to

CHF 340 million; +20% at constant exchange

rates

400

Associated companies Publigroupe

314

340

(Zanox and local.ch)

rates.

� Total revenue from online (incl. participations)

represents 38% of total business generated

by PubliGroupe and associated companies 249267200

300

227

by PubliGroupe and associated companies.

� PubliGroupe expands its position as a key

player in the online market in Switzerland

(through Namics and Instanz) and with Zanox64 73

177100

(in partnership with Axel Springer) in Western

Europe and increasingly worldwide.50

64 73

0

HY1 2009 HY1 2010 HY1 2011

Total revenue Total revenue Total revenue

HY1 2009 :

CHF 951 m

(online 24%)

HY1 2010 :

CHF 942 m

(online 33%)

HY1 2011 :

CHF 884 m

(online 38%)

6

Media SalesVolume mainly down due to non continued TV activities and currency effects

1

2

3

Volume mainly down due to non-continued TV activities and currency effects

� Sales decrease by 12% to CHF 517.2 million

versus CHF 588.1 million in the previous year. 800

HY1 2010 HY1 2011

Sales, in millions of CHF

� Major reason for the lower business volume was

the result of the termination of the TV

commercialisation agreements which represented

almost CHF 30 million.

588.1517.2

400

600

800-12%

almost CHF 30 million.

� Print activities in Switzerland drop of 6%,

international volume down by 11%, only because of

currency effects (at constant exchange rates

international business with +2%)

0

200

Salesinternational business with +2%).

� The CHF 5.1 million one-time complete impairment

of goodwill in the TV business plus other related

costs resulted in a negative segment EBIT of CHF -94 4

HY1 2010 HY1 2011

Gross margin and EBIT, in millions of CHF

-14%

6.2 million.

� EBITDA positive with CHF 0.4 million (first half of

2010: CHF 0.0 million)

� Comparable expenses for the segment dropped

94.480.8

20

40

60

80

100

� Comparable expenses for the segment dropped

14% from CHF 93 million in 2010 to CHF 80.4

million year-to-date 2011, down from CHF 145.4

million in 2007.

-3.7 -6.2-20

0

20

Gross margin EBIT

7

Media SalesGood operational performance by Publicitas branch network

1

2

3

Good operational performance by Publicitas branch network

� Activities in Switzerland confirm their profitable

turnaround, especially thanks to a good 800

HY1 2010 HY1 2011

Media Sales Switzerland*, in millions of CHF

performance of the traditional Publicitas branch

network in the regional/local markets, despite

overall decline of business in Switzerland of 6%.

� The volume of the international business

435.9 408.4400

600

800

-6%

� The volume of the international business,

representing less than 20% of total Media Sales

business, drops 11%, mainly due to negative

currency impacts of a lower USD and euro. 0

200

Sales* Does not include Electronic Media

� The termination of the TV commercialisation

agreements with the ProSiebenSat1 and 3+ groups

decreased sales by almost CHF 30 million and

gross margin by CHF 4.4 million. Total EBIT decline29.3

30HY1 2010 HY1 2011

Analysis Media Sales TV business 2011/2010,in millions of CHF

gross margin by CHF 4.4 million. Total EBIT decline

due to termination of CHF 5.5 million.

� PubliGroupe had previously decided not to enter

guarantee-based television agreements in favour of 4.4

0.40.3 0.0

10

a performance-oriented profitability approach

across all media categories. -5.5-10

Gross margin EBITSales

8

Search & Find Investing in the future

1

2

3

Investing in the future

� Good volume development, despite lower sales in

traditional print business that saw a decline of 80

HY1 2010 HY1 2011

Sales, in millions of CHF

-11%, largely offset by good growth in online search

services (+11%).

� EBIT down mainly because of investments being

undertaken in the online platform home ch higher

46.350.4

40

60

80

+9%

undertaken in the online platform home.ch, higher

marketing efforts during the first semester and

continued one-off costs associated with structural

adjustments and the development of new online

services

0

20

Salesservices.

� Margins will increaslingly profit from a reduction of

direct costs, such as from the optimisation of paper

purchasing and production of print products with 40

HY1 2010 HY1 2011

Gross margin and EBIT, in millions of CHF

+2%purchasing and production of print products with

fewer suppliers

� Traditionally profiting from a much stronger second

half in terms of sales, S&F full-year profits should

31.6

9.4

32.1

7 2

20

30

40

-23%

be at least in the order of last year’s results. 9.4

7.2

0

10

Gross margin EBIT

9

Consolidation P+S (local ch Swisscom Directories home ch LTV)

1

2

3

(local.ch, Swisscom Directories, home.ch, LTV)

Unique audience HY1 2011, in millions

3.5

In millionsof CHF

HY12011

HY1 2010

%

Revenue

1 0

1.5

2.0

2.5

3.0Print

Online

Other

42.1

29.4

26.3

47.6

26.4

24.5

-11%

11%

7%

lity

EBITDA th 1%

0.0

0.5

1.0

Go

og

le

Ma

ps

ue

win

cal.

ch

rch

.ch

nb

uch

rch

.ch

rch

.ch

Se

ite

n

tori

es

ide

.ch

AT

E 2

4

QY

PE

oca

l.ch

elp

.ch

Other

Total revenue

26.3

97.8

24.5

98.5

7%

-1%

Profitabi EBITDA growth +1%

EBIT growth +2%

G

Go

og

le

Bl u

Loc

sea

Te

lefo

n

tel.

sea

r

ma

p.s

ea

r

Ge

lbe

S

Dir

ect

Sw

issg

u

GA

ma

p.l

o H

� 11% revenue growth on broad screen, confirms

leading position of local.ch in Switzerland, ahead

of search.ch, just after Google Maps based on

unique audience26.4

29.4

20

30

40

Online broad screen (local.ch + home.ch),in millions of CHF

+11%

� Leadership position on mobile

� Home.ch already #3 in real estate market 0

10

20

HY1 2010 HY1 2011

10

Local.chSuccessfully strengthened leading position on mobile

1

2

3

1 2

Successfully strengthened leading position on mobile

� More than 1 million

downloads of local app

0 8

1.0

1.2 > 1 million

downloads

on all mobile platforms

(iOS,Android,Blackberry,

W7,Nokia)

24% th f millio

ns

Mo

nth

ly

0 4

0.6

0.8

24% usage

growth

� 24% usage growth of

local.ch app on iPhone

since January 2011

U t t d #1 i

Cumulative downloads

on all platforms

ow

nlo

ad

s, in

m

us

e iP

ho

ne

, in

0 0

0.2

0.4� Uncontested #1 in

Mobile search & find Ap

p d

o

n m

illion

s

0.0

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

Occasional use (>1 day per month)

Frequent use (5 days per month)

Active use (>10 days per month)

Source: Official platform Stores (iOS,Android,Blackberry,W7,Nokia)

Source: Usage rating by Apple

Active use (>10 days per month)

11

Digital & Marketing Services Strong operational performance

1

2

3

� The Zanox group continues its strong performance

as Europe's #1 Performance Advertising Network. 75.0 SVB

Strong operational performance

70.362 9-10%

DMS Sales, in millions of CHF

The acquisition of M4N (NL) and geographical

expansion (e.g. Poland, Turkey) accelerate growth.

EUR 208m sales in HY 1 (+ 22% vs. PY). 51.2 40.2

25 0

50.0

SVB

Digital62.910%

� DMS sales declined by -10% (-2% without currency

impact) as reduction of traditional media budgets of

SVB’s clients continues. Very good revenue

development at Namics (+11% vs. PY).

19.1 22.8

0.0

25.0

HY1 2010 HY1 2011Note: Zanox Group not included; includes FX impact of -8%

� Gross profit +6% was supported by expansion at

Namics and improved margins.

DMS gross margin and EBIT, in millions of CHF

25 230 HY1 2010

p ; p

+6%

� Reported EBIT grew +53% (+74% w/o FX) driven by

Zanox & Namics performance as well as a one time

temporary effects (CHF 2.1m).

23.8 25.2

10

20

HY1 2011

+58%

� DMS further expands its footprint in "online

performance marketing”, a fast growing area with

higher margins than traditional online segments.Gross Profit EBIT

2.6 4.0

0

10

12

Digital & Marketing Services Zanox grows top and bottom line

1

2

3

Zanox grows top and bottom line

� Zanox with strong top and bottom line since

creation of joint-venture: revenue growth of 29%

Zanox Sales & EBITDA, in millions of EUR

+22% +18%

169.8

207.8

100

150

200

250

11.2

13.2

5

10

15CAGR; EBITDA growth of 20% CAGR.

� Growth as a result of both positive organic

development and acquisitions.

22%

0

50

HY1 2010 HY1 2011

0

5

HY1 2010 HY1 2011

Sales EBITDA

� Zanox with leading market position in

Performance Advertising Network segment.

Zanox Group

Geographic Positioning

� Geographic footprint further

� Geographic expansion (organic and through

acquisitions) playing an important role in the

growth strategy.

g p p

strengthened

� New no. 1 player in Benelux

after M4N acquisition

� Offices in Turkey and

Poland operational - CH in

� 8 of 10 regions are showing double-digit

revenue growth for 2011

p

continued build-up phase

� Expansion to Brazil in

progress together with key

client

13

KEY FINANCIALS GROUP2 KEY FINANCIALS GROUP2

Well capitalised, solid cash flow

Andreas SchmidtAndreas Schmidt

Chief Financial Officer

14

P&L GroupExpense reduction compensates for gross margin decline

1

2

3

in millions of CHF Change % HY1 2011

HY1 2010

Restated

Expense reduction compensates for gross margin decline

in millions of CHF Change % HY1 2011 Restated

Revenue - 11% 637.5 714.1

Gross margin - 7% 142.2 153.4

Expenses - 11% -131.1 -146.6

EBITDA + 64% 11.1 6.8

EBIT + 23% 13.8 11.3

Financial result - 98% 0.4 16.4

Taxes 1 3Taxes - - -1.3

Non-controlling interests + 185% 0.7 0.2

Net result - 44% 14.9 26.6

15

Extraordinary items HY1 2011 Again important gains from divestments

1

2

3

Again important gains from divestments

i illi f CHF

Net Result 2011 - nominal 14.9

in millions of CHF

Divestment 13.5

Impairments -6.6

Others 0 5Others 0.5

Total non recurring elements 7.3

Net result 2011 - comparable 7.6

16

Net result - cause of changePerformance improved thanks to reduced expenses and associates

1

2

3

Performance improved thanks to reduced expenses and associates

26.6NET RESULT 2010 26.6

7.0

11 2

19.6

Gross margin

COMPARABLE 2010

One Time Events 2010

NET RESULT 2010

1 6

1.0

9.8

-11.2

A i t d

Depreciation

Expenses

Gross margin

0.3

1.6

-1.3

Taxes

Financial result

Associated

7.6

7.3

0.5

One Time Events 2011

COMPARABLE 2011

Minority interests

14.9

-10 -5 0 5 10 15 20 25 30

NET RESULT 2011

in millions of CHF

17

Cash flow statementSeasonal working capital needs affect operational cash flow

1

2

3

Seasonal working capital needs affect operational cash flow

1st half year

2011

1st half year

2010

in millions of CHF restatedin millions of CHF restated

Cash and cash equivalents as of 1 January 102.6 58.0

Cash flows from operating activities -23 5 -23 5Cash flows from operating activities 23.5 23.5

Cash flows from investing activities 16.7 88.5

Cash flows from financing activities -15 7 -44 8Cash flows from financing activities 15.7 44.8

Effect of exchange rates -2.6 -0.3

Cash and cash equivalents as of 30 June 77.5 77.9Cash and cash equivalents as of 30 June 77.5 77.9

18

Group balance sheet Solid balance sheet and still solid net liquidity

1

2

3

Solid balance sheet and still solid net liquidity

in millions of CHF Change as of 30 June 2011 as of 31 December 2010in millions of CHF Change as of 30 June 2011 as of 31 December 2010

Currents assets -7% 386.0 416.7

Non-current assets -6% 416.3 444.2

Total assets -7% 802.3 860.9

Current liabilities -9% 272.3 297.9

Non current liabilities 14% 102 1 118 8Non-current liabilities -14% 102.1 118.8

Equity, shareholders of PubliGroupe Ltd. -2% 401.1 410.8

Non-controlling interests -20% 26.8 33.4

Total liabilities and equity -7% 802.3 860.9

Equity in % of assets 50% 48%

Net short-term group liquidity 79 118

Bank debt 93 93

19

CONCLUSION3 CONCLUSION3

Conclusion & outlook 2011

Hans-Peter RohnerHans-Peter Rohner

CEO & Chairman of the Board

20

Conclusion & outlookOperationally largely improved solidly financed well positioned

1

2

3

� Results of the first six months of 2011 confirm that PubliGroupe continues to witness an

anticipated shrinking of its top line in the traditional business that is managed through a

Operationally largely improved, solidly financed, well positioned

anticipated shrinking of its top line in the traditional business that is managed through a

leaner, more effective organisation.

� The double-digit growth of the operational result on a like-for-like basis shows ability toThe double digit growth of the operational result on a like for like basis shows ability to

adapt to changing economic conditions. This management culture will continue.

� PubliGroupe continues to see the benefits of its successful investments in its online

business, which has become even more important.

� Despite the current economic woes and the difficulty of forecasting the macro economic

d l t d it i t th d ti i di PG f th t it ill idevelopment and its impact on the advertising spending, PG foresees that it will improve

last year’s operative result (EBIT) for the full year 2011. The level of improvement will

depend on the further economic development.

21

Backup Slides

22

Comparable expenses by segment Backup

in millions of CHF Change

1st half

year 2011

1st half year

2010 restatedin millions of CHF Change year 2011 2010 restated

Search & Find 6% 30.7 28.8

Media Sales -14% 80.4 93.0

Custom Publishing - 0.0 5.1

Digital & Marketing Services 4% 25.1 24.1

C t & Oth 54% 11 3 7 3Corporate & Others 54% 11.3 7.3

Eliminations -21% -4.3 -5.4

Comparable expenses -6% 143.2 152.9

Non recurring elements 92% 12.1 6.3

Total expenses -11% 131.1 146.6

� CHF 9.8 millions or 6% overall expenses reduction on comparable basis

23

Consolidated income statement Backup

in millions of CHF Change 1st half year 2011

1st half year

2010 restated

Revenue -11% 637 5 714 1Revenue -11% 637.5 714.1

Purchases -11% -469.0 -526.2

Sales reductions -24% -26.3 -34.5

Gross margin -7% 142.2 153.4

Personnel expenses -9% -110 9 -121 3Personnel expenses -9% -110.9 -121.3

General and administrative expenses -5% -35.9 -37.8

Other income and expenses 26% 15.7 12.5

EBITDA 64% 11.1 6.8

Depreciation and amortisation 10% 8 5 9 4Depreciation and amortisation -10% -8.5 -9.4

Impairment loss -6.6 -1.8

Share in result of associates 13% 17.8 15.7

Operating result (EBIT) 23% 13.8 11.3

Financial result 98% 0 4 16 4Financial result -98% 0.4 16.4

Result before income tax -49% 14.2 27.7

Income tax expense 0.0 -1.3

Result -46% 14.2 26.4

Result attributable to:

- Non-controlling interests 185% -0.7 -0.2

- Shareholders of PubliGroupe Ltd -44% 14.9 26.6

24

Consolidated balance sheetAssets

Backup

Assets

as of 30 June as of 31 December

i illi f CHF Ch 2011 2010in millions of CHF Change 2011 2010

Cash and cash equivalents -24% 77.5 102.6

Marketable and available-for-sale securities 2% 15.7 15.3

Receivables, accruals and taxes receivables -5% 283.8 298.8

Assets held for sale - 9.0 0.0

Current assets -7% 386.0 416.7

Land and buildings -13% 65.9 75.6

Other tangible and intangible assets -11% 65.0 72.9g g

Investments in associates 1% 234.0 232.7

Actifs financiers et impôts différés -18% 51.4 63.0

Non-current assets -6% 416.3 444.2

Total assets -7% 802.3 860.9

25

Consolidated balance sheetLiabilities

Backup

Liabilities

as of 30 June as of 31 December

in millions of CHF Change 2011 2010

Current debts - 13.9 0.0

Payables, accruals and taxes payables -13% 252.4 289.7

Long and short term provisions, deferred taxes -13% 26.5 30.4

Non-current debts -16% 81.6 96.6

Total liabilities -10% 374.4 416.7Total liabilities 10% 374.4 416.7

Share capital - 2.5 2.5

Treasury shares -6% -49.6 -52.6

R 3% 448 2 460 9Reserves -3% 448.2 460.9

Equity, shareholders of PubliGroupe Ltd -2% 401.1 410.8

Non-controlling interests -20% 26.8 33.4

Total equity -4% 427.9 444.2

Total liabilities and equity -7% 802.3 860.9

26

Cash flow from operating activities Backup

in millions of CHF

1st half

year 2011

1st half year

2010 restatedin millions of CHF year 2011 2010 restated

Result 14.2 26.4

Adjustments for non-cash items -15.4 -26.4

Dividends paid to non-controlling interests by Group companies -6.0 -8.9

Dividends received 9.9 9.0

Interest received 0.7 0.5

Interest paid -1.7 -1.8

Taxes paid -2.2 -6.5

Use of provisions -2.3 -3.0

Working capital changes -20.7 -12.8

Cash flows from operating activities -23.5 -23.5

27

Cash flow from financing activities Backup

in millions of CHF

1st half

year 2011

1st half year

2010 restatedin millions of CHF year 2011 2010 restated

Acquisitions of tangible assets -1.6 -1.2

Disposals of tangible assets 0.3 12.6

Acquisitions of intangible assets -6.2 -8.1

Disposals of marketable securities 0.0 0.4

Acquisitions of subsidiaries, net of cash acquired -1.7 -5.3

Disposals of subsidiaries, net of cash disposed of 11.7 0.0

Disposals of associates 0.4 21.7

Investments in financial assets 1 0 6 9Investments in financial assets -1.0 -6.9

Divestments of financial assets 14.8 75.3

Cash flows from investing activities 16.7 88.5

28

Cash flow from investing activities Backup

in millions of CHF

1st half

year 2011

1st half year

2010 restatedin millions of CHF year 2011 2010 restated

Increase /(decrease) in bank debts 0.9 -45.0

Capital contribution from non-controlling interests 0.0 0.1

Purchase of treasury shares -1.1 0.0

Sale of treasury shares 1.1 0.2

Acquisition of non-controlling interests -2.6 -0.2

Increase in additional paid-in capital 0.1 0.1

Dividend paid to shareholders of PubliGroupe Ltd -14 1 0 0Dividend paid to shareholders of PubliGroupe Ltd -14.1 0.0

Cash flows from financing activities -15.7 -44.8

29

Digital & Marketing Services EBIT Pro Forma

Backup

� The EBIT Pro Forma gives a comparable view of the

high operational EBIT contribution of DMS

EBIT Pro Forma

DMS EBIT, in millions of CHF

10Pro Forma

companies (PG share).

� EBIT Pro Forma is derived by eliminating

- depreciation of intangible assets (PPA) &

7.5

6.4

8

10 Reported

-14%

- PG's share of interest and taxes in the net

result of the Zanox group

� EBIT Pro Forma is 1.6x EBIT reported

4.9 2.4

4

6

+58%

� EBIT Pro Forma fell by 14% (-3% w/o FX) partially

due to increased investments resp. depreciation at

Zanox

2.6

4.0

0

2

HY1 2010 HY1 2011

30