Solocal Group · EURONEXT:LOCAL

Solocal — Investor Presentation (January 2015)

36 slides from Solocal's investor presentation, January 2015

  1. Slide 1: Investor Presentation January 2015

    INVESTOR PRESENTATION JANUARY 2015

  2. Slide 2: Disclaimer

    Disclaimer This document contains forward-looking statements. Although Solocal Group believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from the result

  3. Slide 3: Solocal a new business profile

    Solocal a new business profile Post LBO restructuring with a debt reduced from €2,0bn to €1,2bn in 3 years Strategic reset of the business and execution of “Digital 2015” transformation plan New positioning as a pure online CONTAINED PRINT DECLINE local communication business at 17% with slow erodin

  4. Slide 4: Our mission

    Our mission Simply connect people with local businesses Investor Presentation – January 2015 4

  5. Slide 5: What we do for our client

    What we do for our client WE MANAGE ONLINE LOCAL PRESENCE WE CREATE ONLINE BUSINESS CONTENT Business Units Investor Presentation – January 2015 5

  6. Slide 6: Strong digital audiences and accelerating growth

    Strong digital audiences and accelerating growth Record growth +17% 20% VISITS 530 (million) 503 485 460 454 454 457 17% 433 418 416 15% 415 10% 11% 11% 10% 9% 9% 9% 5% 6% 6% 6% 4% 0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Internal source : quarterly

  7. Slide 7: Mobile: growing engagement and revenues

    Mobile: growing engagement and revenues ~85e ~688e ~+35%e €63M Revenues (€ million) €45M 510 +53% Audiences (million visits) 334 +63% ~36e 30 Downloaded 22 Apps (million) 2012 2013 2014 Internal source : audiences for total Group on fixed and mobile Internet , apps for total Group downloaded Investo

  8. Slide 8: Top 5 in France audience with 3 brands in top 100

    Top 5 in France audience with 3 brands in top 100 REACH 9th 42% REACH 29th 20% 5 GLOBAL REACH (Internet fixed and mobile) REACH 86th 11% 1Source: Nielsen Médiamétrie indicator – August 2014 – reach global (Internet fixed and mobile) Number of unique visitors of a website, expressed as a percentage o

  9. Slide 9: Specialized marketplaces to add relevant expertise and in depth content

    Specialized marketplaces to add relevant expertise and in depth content  New online appointment scheduling platform for doctors, launched in November  Specific sales & marketing team  Combines strong and unique PagesJaunes audience with specialized scheduling platform Investor Presentation – Janu

  10. Slide 10: Essential Digital 2015 transformation program

    Essential « Digital 2015 » transformation program to deliver overall growth supported by strong online performance  ACHIEVE OVERALL POSITIVE REVENUE Values / Digital Tools KPIs GROWTH IN 2015 which requires an online Management Talents IS growth above 7% Client focus  AN INVESTMENT OF 200M€ IN 3 Y

  11. Slide 11: Expert teams organized in 6 vertical business units

    Expert teams organized in 6 vertical business units Large Retail Service Home B2B Public accounts  € 148 M  € 148 M  € 258 M  € 140 M  € 94 M  € 80 M revenues revenues revenues revenues revenues revenues  € 870  € 1,640  € 1,780  € 1,395  € 1,110  € 7,990 ARPA ARPA ARPA ARPA ARPA ARPA 

  12. Slide 12: Group transformation has affected Internet short term revenue growth and profitability

    Group transformation has affected Internet short term revenue growth and profitability … Revenues growth Normalised gross operating margin (9M 2014) (9M 2014) 40% 45% 39% Total Print Internet -1% -7% -16% Total Print Internet Accounting data : Revenues growth and normalised GOM for the first 9 month

  13. Slide 13: The new organisation has started to deliver

    … but the new organisation has started to deliver substantial increase in PagesJaunes orders intake Pre-transformation During transformation Post-transformation (end 2013) (Jan. – July 2014) (Aug. – Oct. 2014) +18% Total Print Internet Total Print Internet +7% Print -1% -6% -10% Total -11% Internet

  14. Slide 14: A decrease in net cash flow due to GOM reduction and restructuring cost

    A decrease in net cash flow due to GOM reduction and temporary restructuring cost and change in working capital Net cash flow as of 30 September 2014 in million Euros 115.9 11.3 37.1 (16.0) (64.1) 36.6 (15.4) (32.1) Net Cash Flow Reported GOM CAPEX Cash Corporate Restructuring Net change in Net Cash

  15. Slide 15: Outlook

    Outlook The Group expects 2014 revenues and normalised gross operating margin1 around the low end of the announced guidance :  Revenues decrease expected between -3% and -6%  Normalised1 gross operating margin expected between 355 million euros and 375 million euros Digital 2015 investments shall

  16. Slide 16: Questions & Answers

    Sobcal GROUP : QUESTIONS & ANSWERS

  17. Slide 17: Appendices

    Sobcal GROUP : APPENDICES

  18. Slide 18: Group revenues for the 3rd quarter: -7.9%

    Group revenues for the 3rd quarter: -7.9% Revenues affected by Decrease in GOM linked the slowdown of the Internet business to the business slowndown and management of the digital transformation Revenues in 249.1 M€ 229.3 M€ -7.9% GOM in €M 45.5% 41.0% €M 300 150 -4.5 pts 5.5 93.9 -17.1%1 250 4.3 20

  19. Slide 19: Revenues and normalised gross operating margin: 3rd quarter and 9 months 2014

    Revenues and normalised gross operating margin : 3rd quarter and 9 months 2014 In million Euros Q3 2014 Q3 2013 Change 9M 2014 9M 2013 Change Internet 152.5 154.9 +1.5% 467.7 471.0 -0.7% Printed directories 72.5 88.7 -18.3% 218.9 262.2 -16.5% Other businesses 4.3 5.5 -21.8% 13.4 16.2 -17.3% Revenues

  20. Slide 20: Revenues and reported gross operating margin: 3rd quarter and 9 months 2014

    Revenues and reported gross operating margin : 3rd quarter and 9 months 2014 In million Euros Q3 2014 Q3 2013 Change 9M 2014 9M 2013 Change Internet 152.5 154.9 -1.5% 467.7 471.0 -0.7% Printed directories 72.5 88.7 -18.3% 218.9 262.2 -16.5% Other businesses 4.3 5.5 -21.8% 13.4 16.2 -17.3% Revenues 2

  21. Slide 21: Normalised GOM of €93.9 M for 3rd quarter

    Normalised GOM of €93.9 M for 3rd quarter 41.0% of Group revenues Normalised gross operating margin by segment In million Euros Q3 2014 Q3 2013 Change Group normalised gross operating margin 93.9 113.3 -17.1% as % of Group revenues 41.0% 45.5% -450 bps Internet 60.0 69.8 -14.0% as % of Internet reve

  22. Slide 22: Impact of new sales contracts on gross operating margin

    Impact of new sales contracts on gross operating margin ■ Change in structure of salesforce compensation following implementation of new Background contracts starting in April 2014: ~75% recognized as incurred (fixed part + expenses) vs ~40% previously ■ No change in accounting principles: increment

  23. Slide 23: Impact of new sales contracts

    Impact1 of new sales contracts 2014 In € million Q3 9M FY Reported GOM 82 265 330-345 In % of revenues 35.9% 37.8% Normalisation impact 12 16 25-30 Normalised GOM 94 281 355-375 In % of revenues 41.0% 40.1% 1The impact in terms of figures corresponds to an estimate based on forecast projections. Inv

  24. Slide 24: Normalised GOM decreased by -17.1% in the 3rd quarter

    Normalised GOM decreased by -17.1% in the 3rd quarter Change in consolidated gross operating margin (GOM) in million Euros 113.3 4.2 1.4 93.9 (19.8) (4.3) (0.9) 82.4 (11.5) Reported GOM Revenues Paper Sales personnel Other external Other personnel Normalised 2014 Reported GOM Q3 2013 Print expenses

  25. Slide 25: Income statement: 3rd quarter and 9 months 2014

    Income statement: 3rd quarter and 9 months 2014 In million Euros Q3 2014 Q3 2013 Change 9M 2014 9M 2013 Change Revenues 229.3 249.1 -7.9% 700.1 749.4 -6.6% Net external expenses (52.7) (52.6) -0.2% (159.2) (155.5) -2.4% Salaries and charges (94.1) (83.2) -13.1% (276.2) (265.2) -4.1% Reported gross o

  26. Slide 26: Effective tax rate evolution

    Effective tax rate evolution Q3 Q3 9M 9M 2014 2013 Change 2014 2013 Change Statutory tax rate 34.43% 34.43% 34.43% 34.43% Additional tax1 3.57% 1.67% 190 bps 3.57% 1.67% 190 bps Partial deductibility of financial interests 6.56% 3.78% 278 bps 6.20% 1.91% 429 bps CVAE (Cotisation à la valeur ajoutée

  27. Slide 27: Cash flow statement: 3rd quarter and 9 months 2014

    Cash flow statement: 3rd quarter and 9 months 2014 In million Euros Q3 2014 Q3 2013 Change 9M 2014 9M 2013 Change Reported GOM 82.4 113.3 -27.3% 264.7 328.8 -19.5% Legal employee profit-sharing (2.6) (3.5) +25.7% (8.6) (10.6) +18.9% Share-based payment - - na (4.2) - na Non monetary items included i

  28. Slide 28: Net cash flow: €37 M as of 30 September 2014

    Net cash flow: €37 M as of 30 September 2014 Net cash flow as of 30 September 2014 in million Euros 115.9 11.3 (15.4) 37.1 (16.0) 36.6 (96.2) Net Cash Flow GOM & Cash Corporate CAPEX Other* Net Cash Flow 9M 2013 Net change in financial income income tax paid 9M 2014 working capital 9M 2014 228.1 (56

  29. Slide 29: Balance sheet as of 30th September 2014

    Balance sheet as of 30th September 2014 In million Euros 30 Sept. 2014 31 Dec. 2013 30 Sept. 2013 ASSETS Total non-current assets 238.9 214.8 215.3 Net goodwill 82.5 78.7 83.9 Other net intangible fixed assets 102.5 80.8 76.7 Net tangible fixed assets 25.1 23.6 23.6 Other non-current assets of which

  30. Slide 30: Net debt as of 30th September 2014

    Net debt as of 30th September 2014 In million euros 30 Sept. 2014 31 Dec. 2013 30 Sept. 2013 Cash and cash equivalents 24.6 75.5 112.0 Gross cash position 24.7 75.6 112.0 Bank overdrafts (1.5) (2.5) (7.3) Net cash position 23.2 73.1 104.7 Bank borrowings (813.9) (1,297.5) (1,347.1) Bond borrowings –

  31. Slide 31: Compliance with covenants as of 30 September 2014

    Compliance with covenants as of 30 September 2014 Financial leverage1 26% Interest coverage2 25% 4.50x 4.30x 4.00x 4.00x 3.75x 4.06x 4.00x 3.74x 3.55x 3.57x 3.00x 3.00x 3.00x 3.00x 3.00x 3.65x 3.71x 3.74x 3.73x 3.35x 09/30/12 12/31/12 09/30/13 12/31/13 09/30/14 09/30/12 12/31/12 09/30/13 12/31/13 09

  32. Slide 32: Glossary

    Sobcal GROUP : GLOSSARY

  33. Slide 33: Glossary - Operating P&L

    Glossary - Operating P&L Group Digital revenues:  Total of Internet revenues from PagesJaunes (pagesjaunes.fr, annoncesjaunes.fr, pagespro.com, websites and mobile Internet) and Internet revenues from all other subsidiaries in the Group Net external expenses:  Include external purchases: primarily

  34. Slide 34: Glossary – Financial Structure

    Glossary – Financial Structure Net financial debt:  Total gross financial debt plus or minus the fair value of derivative asset and liability hedging instruments and minus cash and cash equivalents Ratio of Net Debt to GOM:  Such as defined in the agreement concluded with the creditors, i.e. the r

  35. Slide 35: Glossary – Audiences & Sales orders

    Glossary – Audiences & Sales orders Audiences  Syndicated: indirect audiences on PagesJaunes contents excluding PagesJaunes digital media (such as Bing, Yahoo!, Comprendre Choisir,...)  SEO & affiliates: audiences on PagesJaunes digital media from affiliate partners (MSN, Nosibay, Free & Alice, Pl

  36. Slide 36: www.solocalgroup.com

    So www.solocalgroup.com GROUP

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