Slide 1: Webcast Q2 2016
Webcast Q2 2016 Kista, 2016‐08‐15
Slide 2: Agenda
Agenda 1) Q2 highlights 2) Traffic and product development 3) Financials 2 Interim report January – June 2016
Slide 3: Revenues are still the problem, efficiency enhancing activities continues to deliver
Revenues are still the problem, efficiency enhancing activities continues to deliver Operating revenue decreases 22%, reaching 496 MSEK (634) • Q2 2016 compared to Q1 2016 ‐2% Desktop/Mobile search revenue decreases ‐16%, reaching 339 MSEK (405) • Q2 2016 compared to Q1 2016 ‐5% Earnings continues t
Slide 4: Management’s focus in Q2 2016
Management’s focus in Q2 2016 Top priority: actions to stabilize the customer base 1. Reduce churn (actions to decrease number of customers not renewing their contracts) 2. Prospect sales (actions to add new customers) 3. Actions addressing both these dimensions Through a stabilized customer base,
Slide 5: Contents
Contents 1) Q2 highlights 2) Traffic and product development 3) Financials 5 Interim report January – June 2016
Slide 6: Total UB YTD -2%
Actual 2014 Total UB YTD ‐2% Actual 2015 Actual 2016 2 950 000 1 600 000 2 800 000 1 500 000 2 650 000 1 400 000 2 500 000 1 300 000 YTD 2016 YTD 2016 2 350 000 ‐3,5% 1 200 000 +0,3% 2 200 000 1 100 000 Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec 1
Slide 7: Leads delivered to our customers increased by 7% YTD
Leads delivered to our customers Actual 2014 increased by 7 % YTD Actual 2015 Actual 2016 1 000 000 700 000 900 000 600 000 800 000 500 000 700 000 YTD 2016 400 000 YTD 2016 +3% +15% 600 000 300 000 Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec 800 0
Slide 8: Mobile usage of our services continues to increase
Mobile usage of our services continues to increase 9 000 000 8 000 000 7 000 000 19% 26% 34% 36% 39% 6 000 000 5 000 000 81% 74% 66% 64% 61% 4 000 000 3 000 000 2 000 000 1 000 000 ‐ 2013 2014 2015 2016 Q1 2016 Q2 Total desktop UB Total mobile UB 8 Interim report January – June 2016
Slide 9: User experience Updates in Q2
User experience Updates in Q2 Real estate boarders at krak.dk Bicycle routes at krak.dk The nautical app Eniro På‐Sjön has got many new features, among others, AIS information. Links to Facebook Ratings from TripAdvisor 9 Interim report January – June 2016
Slide 10: Customer experience Updates in Q2
Customer experience Updates in Q2 Better presentation of companies on the hit‐list’s first New display format Improved display format, new take‐over page (now with no/fewer unpaying companies). format for start page, allows videos New effect report Norway Free logotype for all customers New product
Slide 11: Contents
Contents 1) Q2 highlights 2) Traffic and product development 3) Financials 11 Interim report January – June 2016
Slide 12: Focus on reversing the trend in Digital revenues
Focus on reversing the trend in Digital revenues Operating revenue by category and operating segments Comments Apr-Jun Apr-Jun Jan-Dec SEK M 2016 2015 % 2015 Desktop/Mobile search 339 405 -16 1 546 Excluding currency effects ‐14% Complementary digital marketing products 34 60 -43 222 In Q1 2015,
Slide 13: Revenue by category (%) Q2 2016
Revenue by category (%) Q2 2016 13 Interim report January – June 2016
Slide 14: Revenue Q2 2016 vs Q2 2015, decrease of 22%
Revenue Q2 2016 vs Q2 2015, decrease of 22% Revenue bridge Comments 634 Currency effects of ‐15 MSEK 66 included, primarily due to a weaker NOK 26 21 25 496 Revenue Desktop/Mobile Compl. Dig. Print products Voice Revenue Q2 2015 Mkt. Prod. Q2 2016 14 Interim report January – June 2016
Slide 15: Declining digital revenues remains a challenge
Declining digital revenues remains a challenge Revenue by country Comments Apr-Jun Apr-Jun Jan-Dec SEK M 2016 2015 % 2015 Sw eden 209 274 -24 1 038 Norw ay 126 172 -27 641 Comparison of revenue in Norway Denmark 68 87 -22 366 year by year is affected by a Finland 41 45 -9 178 currency effect of ‐1
Slide 16: Cost during Q2 2016 was 201 MSEK lower than Q2 2015
Cost during Q2 2016 was 201 MSEK lower than Q2 2015 EBITDA by operating segments Comments Apr-Jun Apr-Jun Jan-Dec SEK M 2016 2015 % 2015 Total EBITDA 116 49 137 383 Whereof Local search 98 44 123 273 Whereof Voice 31 48 -35 189 Whereof Other -13 -43 70 -79 EBITDA margin % 23,4 7,7 15,7 Item s affect
Slide 17: Key financials: Q/Q comparison
Key financials: Q/Q comparison 634 564 Q2 2016 Q2 2015 496 468 116 118 96 49 59 -2 -13 -32 -35 -22 -56 -90 Prepaid Revenue EBITDA Adj. EBITDA Change in Net financial CapEx Operating 1 revenue working capital items cash flow 1) Cash flow from operating activities according to Q2 report 17 Interim rep
Slide 18: Development net debt/EBITDA R12
Development net debt/EBITDA R12 Net debt* EBITDA Net debt/EBITDA Total number of shares Q2 2015 438 779 366 4 000 5,0 Q3 2015 460 317 825 3 500 4,5 Q4 2015 477 240 899 4,0 Q1 2016 477 240 899 3 000 Q2 2016 492 625 513 3,2 3,5 2 500 Convertibles converted 3,0 to shares 2 000 2,5 2,5 336 2,0 1 500 1 2
Slide 19: Goodwill
Goodwill Lokal Valuta MSEK Goodwill impairment Goodwill Goodwill post 201606 Impairment Impairment Impairment Sweden, Local search 1062,0 0 1062,0 0 Sverige, Voice 66,1 ‐8,7 57,5 ‐9 Norway, Local search 921,9 ‐630,5 291,4 ‐622 Norge, Voice 30,5 ‐10,9 19,6 ‐11 Denmark, Local search 517,2 ‐183,3 333,9
Slide 20: Q&A
Q&A 20 Interim report January – June 2016
Slide 21: eniro
eniro 2S Discover local. Search local.