Solocal Group · EURONEXT:LOCAL
Solocal — Investor Day (December 2018)
80 slides from Solocal's investor day presentation, Dec 18, 2018
Slide 1: Inside Solocal
# Inside Solocal Analyst & Investor Day 18 DECEMBER 2018
Slide 2: Disclaimer
DISCLAIMER • This document contains forward-looking statements. Any forward-looking statement does not constitute forecasts as defined in European regulation (EC) 809/2004. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or tre
Slide 3: Eric Boustouller, CEO
Eric Boustouller, CEO solocal
Slide 4: Today's objectives
#Inside Solocal Today’s objectives: • Unveil our new digital services offering designed to address customer needs - Full web - Subscription based with auto renewal - Simple and comprehensive - Digital coaching • Share our technology strategy: Solocal is a MarTech • Present our omnichannel sales forc
Slide 5: Agenda
Agenda 1 1.30 - Opening 2 1.45 - 3.00 pm - Full web digital services Frédéric Obala, Chief Media, Presence & Content Officer Amaury Lelong, Chief Online Advertising, Data and New Products 3 3.30 - 4.15 pm - Technology for business Arnaud Defrenne, Chief Technology Officer 4.30 - 5.30 pm - Sales and
Slide 6: 2018: a year of deep transformation
2018: a year of deep transformation Significant milestones achieved since February 2018 • Swift execution of the redundancy plan • Confirmed 2018 guidance: stable recurring EBITDA (€170m) after 9 consecutive years of decline • C. €60m of estimated savings in cost base for FY 2018 compared to FY 2017
Slide 7: 2019 – Execute our strategy
2019 – Execute our strategy • Products - Focus • Media - Reinvent PJ – Mappy MaaS • Omnichannel, customer journey, digital coaching • E-commerce - Acquisition and upsell at optimal cost • Large accounts – Leverage our assets • Leads generation - Marketing automation & coms • Improve customer satisfa
Slide 8: New range of full web digital services
New range of full web digital services
Slide 9: Frédéric Obala and Amaury Lelong
Frédéric Obala, Chief Media, Presence & Content Officer Amaury Lelong, Chief Online Advertising, Data and New Products
Slide 10: Digital services one-stop shop for all companies
Digital services one-stop shop for all companies Digital New Digital Presence Websites advertising services to Print Visibility Ranking Internet Transactional E-reputation Performance E-commerce CRM,… Branding % Digital 25% 50% 25% Test in 2019 Test in 2019 Sales 2019 FULL WEB | ALL DEVICES | ALL SE
Slide 11: Presence and advertising are complementary visibility levers
Presence and advertising are complementary visibility levers SEA ADVERTISING GMB PRESENCE PRESENCE SE0 (thanks to Mini-site and Pages Jaunes listing) P.11
Slide 12: SEA PJ and SEO PJ
« SEA PJ » ADVERTISING « SEO PJ » PRESENCE P.12 00/00/2018 - TITRE DE LA PRÉSENTATION
Slide 13: Presence
PRESENCE
Slide 14: New Presence offering
New Presence offering Free “Essentiel” “Premium” €0 €29 / month1 €49 / month1 1 publisher 8 publishers 20 publishers Of which Of which Publishing content on … … Mini-site O P P Posting news O P P Managing customer reviews Triggering reviews O O P • Solocal creates pages on digital media (Google My B
Slide 15: A unique app to update real time customer information
A unique app to update real time customer information on… And also: P.15
Slide 16: Automatic update of customer profile on Google
Automatic update of customer profile on Searching professionals on Google Logo Geolocalisation Pictures Website Address Opening hours Phone News P.16
Slide 17: … And on PagesJaunes
… And on PagesJaunes... Payment Booking means Services Opening hours Customers Photos Exceptional Products openings Reviews Map Certifications Logo Reviews Email Website Business Actus activity Baseline Booking Scroll down P.17
Slide 18: … And on Facebook
… And on Facebook Cover picture Pictures Payment means Opening hours Activity description Website Phone News (Events, discounts…) Geolocalisation P.18
Slide 19: New Presence offering – Unique customer mobile app
New Presence offering – Unique customer mobile app Update Manage news reviews Add Monitor Edit profile photos dashboard P.19
Slide 20: 2019 opportunities for Presence
2019 opportunities for Presence • Promising results in 2018: - First limited version of Presence product (w/o PagesJaunes): > 65,000 customers - First test of new Presence offering with New Customers started Q4 2018 (Telesales): x2 Sales/Day ratio • Progressive migration of our Customer base: > 200,
Slide 21: Digital advertising
DIGITAL ADVERTISING
Slide 22: Solocal has strong and exclusive competitive edge on digital advertising
Solocal has strong and exclusive competitive edge on the digital advertising market Massive & qualifed Local ads operations Strong GAFA 1st party data & platform partnerships Local search + XY Scalability to run local ads with low Technological, financial and > 20m UV/month budget and low audience p
Slide 23: September 2018: launch of new advertising range on Facebook
September 2018: launch of new, advertising range on Facebook 3,000 social campaigns P.23
Slide 24: Solocal's advertising coverage of France's top 50 media
P.24 visitors Daily unique 10000 15000 20000 25000 30000 35000 5000 0 Google Facebook Youtube Apple Snapchat daily audience Orange Instagram WhatsApp Leboncoin Yahoo ARPA Amazon > €1,000 Outlook.com Wikipedia Twitter SFR L'Equipe MSN Vente-privee Samsung Microsoft Windows Live Credit Agricole Meteo
Slide 25: Path to 2019: from diversification to efficiency & performance
Path to 2019: from diversification to efficiency & performance 2018 offer 2019 offer 1 Multiple & overlapping Simplified and packaged Client-centric, leveraging media arbitrage for 2 Media-specific margin optimisation and performance delivery 3 One-off campaigns Subscription-based with auto-renewal
Slide 26: Simplified client journey to buy ranking on PJ
Example 1 : simplified client journey to buy ranking on PJ 2018 2019 1st position 2nd position and + Pick&choose Pick&choose Pick&choose among among among Pick&choose Pick&choose 2.4k keywords 2.6k keywords 30k keywords among a selection among full selection of 19 keywords keywords Pick&choose + opt
Slide 27: 18 months to fully migrate €200m+ turnover
Example 1 : 18 months to fully migrate €200m+ turnover 2019 2020 Jan Feb Mar April May June Jul Aug Sep Oct Nov Dec Jan Feb Mar April May June PROSPECTS ~7k Basic ~30k CLIENTS Advanced ~90k Sophisticated ~100k 1. Simplify product, pricing & discount policy Migration benefits 2. Subscription-based wi
Slide 28: From media-specific to client-centric offers
Example 2 : From media-specific to client-centric offers Example of Performance offers BOOSTER TRAFFIC SOCIAL BOOSTER CONTACT GARANTI CLIC SITE 2018 LEAD WEB TRAFFIC GENERATION GENERATION 2019 P.28
Slide 29: Towards a simplified, subscription-based range
Example 3 : towards a simplified, subscription-based range RANKING PERFORMANCE BRANDING BRANDING PRIORITY IMPRESSION WEB TRAFFIC LEAD TARGETED TARGETED ON SOLOCAL’S SEARCH NETWORK GENERATION GENERATION DISPLAY VIDEO FULL WEB Priority ranking on a selection of selected keywords Ad creation Ad and lan
Slide 30: Local Impact, bridge between online advertising and offline impact
Example 4 : Local Impact, the bridge between ONLINE advertising and Local OFFLINE impact CUSTOMISED REACH « IN-STORE VISIT » TRACKING • 1st party local search data • Digital advertising ROI measured with tracking of incremental in-store visits • 1st and 2nd party geoloc. data collected with in-App S
Slide 31: 2 examples of Local Impact campaigns
2 examples of Local Impact campaigns National networks Regional networks (Major fast-food player) (Frozen food store) Targeting • Living OR working in catchment area • Living OR working in catchment area • AND • Searched for « supermarket » or visited a local competitor • > 1,000 catchment areas def
Slide 32: Websites
WEBSITES
Slide 33: New internet and e-commerce website range
New internet and e-commerce website range “ESSENTIEL” “PREMIUM” “PRIVILEGE” • Customisable templates • Exclusive templates, optimised design • Fully customised design with tailor • SEO optimised content by dedicated webmaster made functionalities and pro photos • 300 SEA clicks • SEO strategy includ
Slide 34: Websites range: high differentiation from competitors
Websites range: high differentiation from our competitors • One stop shopping • Full range, including e.commerce offer, targetting from the first time buyers to the second equipment customers. Within a very • 2 entry level products (Mini-site & Do It With Me offer), driving for upsell atomised • Com
Slide 35: Websites: Essentiel & Essentiel eCommerce
Websites: Essentiel & Essentiel eCommerce https://www.lk-cuisine-agencement.fr/ https://www.soins-de-sophie.fr/ https://www.salon-artdoise.fr/ https://www.fabricant-panier-grillage.fr/ P.35
Slide 36: Websites: Sites Premium & Premium eCommerce
Websites: Sites Premium & Premium eCommerce www.styl-decor-agencement.fr www.lingetoile-decoration-lyon.fr www.lemoghol.fr www.maitrecorbeau-fromager-angers.fr
Slide 37: Websites: Sites Privilège & Privilège eCommerce
Websites: Sites Privilège & Privilège eCommerce https://www.chocolat-vincentdallet.fr/ https://www.garagedesdeuxroutes.com/ https://www.fastngoodburger.fr/ https://www.valla-peyrat-audition.fr/ P.37
Slide 38: 2019 opportunities for Websites
2019 opportunities for Websites • +20% growth (2/3 of SMBs do not have any website) • New range since Q4 2018, with E-commerce solutions • Do It With Me offer in Q2 2019, for E-commerce channel • Retention plan • New product journey (SEO regular review, design optimisation, change of keywords,…..) •
Slide 39: Technology for business
Technology for business solocal
Slide 40: Arnaud Defrenne, Chief Technology Officer
Arnaud Defrenne Chief Technology Officer
Slide 41: Tech at the core of Solocal business
Tech at the core of Solocal business Develop solocal platform Modernise our Information system • Integrate our technologies into one platform • Cloud Migration using API technologies • Centralised data lake from 5 • Developer portal • Simplify IS (ERP, CRM) and apps portfolio • New PagesJaunes searc
Slide 42: Building a platform and leveraging an ecosystem
Building a platform and leveraging an ecosystem Large platforms Itunes (2003) « A platform is a service playing an intermediation 15% role, providing access to information, content, Apple store (2008) revenues service or goods mostly provided by third parties. Those services organise content to prov
Slide 43: Solocal Marketing Technologies and platforms
Solocal Marketing Technologies and platforms Clients > SME > USERS Clients > media partners PRESENCE DTS Adwords Programatic Store bidding Local ads management web2store ADVERTISING AND PRESENCE MANAGEMENT PLATFORMS 5m 2.4bn 35,000 66,000 Pro 1 million /click + 50,000+ 350,000 businesses visits/yr b
Slide 44: Solocal platform, transforming into one ecosystem using APIs
Solocal platform, transforming into one ecosystem using APIs Tracking Clients Solocal Media partners Users Identité pro AUDIENCE PARTNERS API Presence LOCAL ADS Existantes DTS programmatic EFFILAB My activities with Solocal 100000 Audience Transa 100000 clicks Leads Appoin ctions web tments web 450,
Slide 45: Impact Q1 and Q2
Impact Q1 and Q2 • APIs for sales tools – Omnichannel commerce - Launch of our new sales tools for new Product offering - Oct/Jan/Apr - Launch of new E-Commerce channel - Jan • Media DATA LAKE and DATA API - Launch of our new Solocal app for customers - Desktop - Mobile APP • APIs for media partners
Slide 46: Solocal platform driving revenue and audience upside
Solocal platform driving revenue and audience upside (2019 -> 2020) Tracking Clients Solocal Media partners Users Identité pro Audience partners Existantes local ads API Presence CRM +services DTS New programmatic opportunities ECOM +produits EFFILAB Marketplace My activities with Solocal Transa 100
Slide 47: Solocal opportunity
Solocal opportunity Solocal platform By progressively adding efficiently manages products and services customer information Solocal opportunity towards internet is to become the first media partners intermediation platform between businessess and final users P.47
Slide 48: Key technology projects – PagesJaunes 2019
#Key technology projects – PagesJaunes 2019 • Move2Cloud • A new search engine - With a better split between organic and business links - User First - Better optimisation of advertising places - Evoluating to conversations • … adapted to conversations - Vocal assistants, BOTS - Alexa skills last yea
Slide 49: Ecosystem pagesjaunes.fr
Ecosystem pagesjaunes.fr Crawling sites / Annotation User account / Avis Search settings Booking / Audience / … Commercial system Index recherche Production CG Données Listes Réponses Search Réconciliation (à l’accès) PJ Ooreka RCC & Data par pro providers Données Fiches Détaillées (à l’établissemen
Slide 50: Solocal information system changes
Solocal information system changes Move2Cloud Best practice and ERP Big data and machine learning P.50
Slide 51: New sales tools – 1 unified sales tool
New sales tools – 1 unified sales tool for new product range P.51
Slide 52: Solocal Big Data
Solocal Big Data Aims • Optimised data management MAPPY EFFILAB SoMS ADVERTISING AUDIENCE SALES FINANCE • Decrease running costs • Auto-scaling and unlimited capacity DATA SOURCE INGEST / PROCESS STORE EXPOSE / ANALYSE • Performance DATA WRANGLING • • Enabling User autonomy by providing Google Data
Slide 53: Key success factors
Key success factors AGILITY Key alliances Outsourcing Focus - collaboration P.53
Slide 54: Key take aways
Key take aways • Solocal creates a new unique intermediation platform - Using APIs, micro-services and AI to create a single platform and become the first intermediation technology to help businesses to publish their product and services on internet media • Solocal invests more efficiently to move t
Slide 55: Sales & marketing
Sales & marketing solocal
Slide 56: Christophe Parcot, Chief Revenue Officer
Christophe Parcot, Chief Revenue Officer
Slide 57: 2018 – Reduced sales capacity did not deliver expected performance
2018 – Reduced sales capacity since July applied to legacy siloed sales organisation did not deliver expected performance Inefficient fragmented 437 departures (incl. 240 sales organisation with 5 BUs Portfolios distributed sales reps + 95 managers) in silos, with no flexibility early 2018 could not
Slide 58: Drastic organisational and operational changes from Jan 2019
Drastic organisational and operational changes to reverse trend starting Jan 2019 2018 2019 • Fragmented organisation with BUs and silos • New seg. & centralised org., incl. customer care • Lack of lead generation & lead management • Aggressive marketing automation & investment • Field sales centric
Slide 59: 2019 – New segmentation and centralised go-to-market
2019 – New segmentation and centralised go-to-market to help deliver higher value and reduce costs ARPA OLD NEW • Low touch on low targets E-commerce < €500 Telesales & Telesales • Lower commercial costs Majority of clients Telesales < €1,500 • Telesales vs Field Sales costs Telesales & Field €500 -
Slide 60: 2019 sales organisation set for growth
2019 sales organisation set for growth Sales people by channel • Hiring 90 reps to secure capacity in Q1 19 onwards (01/01/19) • Centralised large accounts & networks organisation – 47 transfers from SMB field sales • 15 dedicated inbound telesales reps 758 712 Field sales Telesales • 6 telesales re
Slide 61: Field sales – concentrated territories and portfolios
Field sales – concentrated territories and portfolios for higher productivity • Concentrated territories – -15% to -20% vs. 2018 Portfolios • Less customers in portfolios – -10% to -20% vs. 2018 & territories • Including 20% of high growth potential customers • Performance based compensation plan •
Slide 62: Large retail networks accounts: a market opportunity worth €1.5bn
Large retail networks accounts: a market opportunity worth €1.5bn Points of Sales % Major customers Sale • Streamlined and centralised new organisation servicing all networks for better 10 to coordination, market coverage and upsell 50 PoS 25% • Higher penetration of local networks • x2 number of me
Slide 63: Telesales – Increased calling time in Q4 18
Telesales – Increased calling time with +10% improvement in Q4 18 • Calling time part of individual objective Optimisation • +65% time to explain offers Renewal 3:30 2:30 • 10% conversion on upsell campaigns • Enhanced monitoring telesales* (hours) • +5%/10% customer value enhancement Q4 2018 Q4 201
Slide 64: Telesales – Q4 promising pilots to roll out in 2019
Telesales – Q4 promising pilots to roll out in 2019 Upsell Winback Lead Campaigns campaigns generation Customers with TARGET Churners Hot leads decreasing ARPA CALLS 1,000 4,000 2,000 (from e-mail product push) CONVERSION 11% 10% 4% RATE (from 1% without e-mail) P.64
Slide 65: Martin Sauer, Head of E-commerce
Martin Sauer, Head of E-commerce
Slide 66: E-commerce – Massive visibility to drive online sales
E-commerce – Massive visibility to drive online sales Landing page 20-40k direct Targeted 3.4m visits on-site Focus on Presence new customers Digital advertising Try & buy 20-30k Online sign-ups Upper funnel mass media Friction-less user experience 200k inbound calls Online advice + CRM campaigns Le
Slide 67: Stéphane Dany, Head of Customer Care
Stéphane Dany, Head of Customer Care
Slide 68: Drastic improvements in customer care
Drastic improvements in customer care to support growth & customer satisfaction • 200+ customer care representatives • From 50:50 to 80:20 front/back office time split • Team equipped/trained to deliver 80%+ on resolutions and 20% on specific expertise • Optimised process & tools: demand categorisat
Slide 69: Customer care – Reactive retention plan to reduce churn
Customer care – Reactive retention plan to reduce churn X3 First pilot started in November 18 • Dedicated team • Objective: test retention of 10 people in Q1 2019 processes & pitches • Specific retention • Team of 3 people processes >30% • 200 termination requests • Specific retention #1 #2 #3 comme
Slide 70: Pascale Furbeyre, Chief Marketing Officer
Pascale Furbeyre, Chief Marketing Officer
Slide 71: Advertising will impact all sales channels
Advertising will impact all sales channels and primarily e-commerce and telesales Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Marketing TV TV TV investment 2019: €10m 2018: €2.7m Radio Radio €7m advertising None in 2018 Social Brand activation SEA Video >50% traffic acquisition Search Starting early J
Slide 72: Sales & marketing automation to boost leads
Sales & marketing automation to boost leads acquisition and conversion for all channels • Q1 19 - 50% increase in available emails in CRM Get volume • Q1 19 - Tests on 5M businesses declared not relevant so far – Grow contacts • Q1 19 – Opt-in process implemented in CRM • Q1 19 – “Freemium program”
Slide 73: Marketing automation ramping up to on-board, upsell and retain
Marketing automation ramping up to on-board, upsell/cross-sell and retain On-board • Q1 19 – Expanding on-boarding program from welcoming customers, using online customer care to providing info on products, delivery, etc. customers • Q1 19 – Supporting e-commerce program to prevent churn from trials
Slide 74: Wrap-up
Wrap-up solocal
Slide 75: Eric Boustouller, CEO and Jean-Jacques Bancel, CFO
Eric Boustouller, CEO Jean-Jacques Bancel, CFO
Slide 76: A cash focused company
A cash focused company • A very significant effort is underway on the cost structure With a lean • Both variable and fixed costs are being cut down cost structure • Starting 2019 with a recurring cost structure structurally slimmed down of more than €100m vs. 2017 • Improving Days Sales Out (DSO) th
Slide 77: 2018: a year of deep transformation; 2019: a year of rebound
2018: a year of deep transformation 2019: a year of rebound • Deep transformation impacting business significantly in the second half of 2018 - Q3 Digital sales down by -19.8% and Q3 Digital revenues down by -3.4% - Q3 trend continuing throughout Q4 - Confirmed 2018 guidance: stable recurring EBITDA
Slide 78: Key drivers in place to deliver Q1 2019 digital sales on target
Key drivers in place to deliver Q1 2019 digital sales on target x4 2018 +€1m Ecommerce +15 % +15% Marketing + 90 Field sales spend channel Field Telesales time sales calling = 45 FTE time Q4 18 Q1 19 RUN RATE New Presence offer New Website range Retention campaigns P.78
Slide 79: Q&A session
Q&A session solocal
Slide 80: P.80
P.80