Yellow Pages Ltd. · TSX:Y
Yellow Pages — Q2 2015 Earnings Presentation
22 slides from Yellow Pages's earnings presentation, 2015
Slide 1: Yellow Pages Limited Q2 2015 Investor Presentation
Yellow Pages Limited Q2 2015 Investor Presentation Available in English Only
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of Yellow Pages Limited. These statements are considered “forward-looking” because they are based on current expectations about our business an
Slide 3: Our Mission
Our Mission We exist to champion the local neighbourhood economy by enabling connections between Canadians and local businesses. Through various digital media solutions, we help Canadians find information on the goods and services around 3 them, while enabling local businesses to make their products
Slide 4: A Leading Digital Advertising Company in Canada
A Leading Digital Advertising Company in Canada One of Canada’s Most Adopted Digital Properties for Local Discovery A Rich, Diversified • Top 15 most visited digital property in Canada, garnering a 40% reach Digital Media • Over 430 million visits executed across our network of digital properties an
Slide 5: A Verticalized User Experience that Attracts Audiences & Merchants
A Verticalized User Experience that Attracts Audiences & Merchants YP App People Search Discover everything the neighbourhood Business & has to offer Canada411 The person finder, Canada-wide YP Shopwise Your everyday shopping app to help you save time and money Retail RedFlagDeals Hunt for the best
Slide 6: A Comprehensive Database of Curated & Relevant Merchant Information
A Comprehensive Database of Curated & Relevant Merchant Information Access to Relevant Merchant Info Rich Multimedia Growing Number of Ratings & Reviews 6
Slide 7: Rich, Unique Editorial Content that Encourages Neighbourhood Discovery
Rich, Unique Editorial Content that Encourages Neighbourhood Discovery Over 14,600 Editorials Now Available to Help Canadians Discover the Neighbourhood • Playlists – Discover Top Ranked Merchants by Category • Smart Tips – Gain Expert Insight on Key Topics • Business Stories – Learn More about Loca
Slide 8: Platforms that Extend Search & Discovery to Transactional
Platforms that Extend Search & Discovery to Transactional Monetizing the C2C Economy by Helping Canadians Save Time Flexibility to Make Table Empowering Homeowners to Sell and Money in Their Everyday Reservations On Your Phone Their Properties More Effectively Shopping Errands 8
Slide 9: Key Performance Indicator – Traffic on our Media Properties
Key Performance Indicator – Traffic on our Media Properties Total Digital Visits1 in Continued Growth Strong Reach Among Digital Canadians2 (in millions, unless otherwise noted) Total Unique Reach YoY Growth: Visitors (in M) +10% +14% +10% +6% +2% 117.4 110.2 1. Google 28.5 M 96% 108.2 102.4 104.0 3
Slide 10: Strongly Positioned to Succeed in the Canadian Marketing Landscape
Strongly Positioned to Succeed in the Canadian Marketing Landscape * Size of bubble denotes approximate advertising revenue in Canada Local Digital Search Engine People Marketing Breadth of Product Boutiques Offerings Self-Serve Website Local Platforms Newspapers Self-Serve Full Serve Service Level
Slide 11: Comprehensive Portfolio to Address SME Needs at all Price Points
Comprehensive Portfolio to Address SME Needs at all Price Points $10-50 $50-100 $100-250 $250-1000 $1000+ PresencePro Website Fulfillment Facebook Solutions Existing Solutions Build Your Digital Presence Search Engine Optimization Smart Digital Display Online & Mobile Priority Placement Drive Your D
Slide 12: One of Canada’s Largest Networks of Digital Media Account Consultants
One of Canada’s Largest Networks of Digital Media Account Consultants 1,100 Media Account Consultants & Sales Support Staff Present Across All of Canada to Service SMEs’ Digital Marketing Needs • Segmented into sales channels to best address the needs of customers at different spend levels • 40% are
Slide 13: Key Performance Indicator – Customer Count
Key Performance Indicator – Customer Count Accelerating Customer Acquisition1 Closing the Gap in Customer Count Decline1 (in thousands) (in thousands, unless otherwise noted) 36 35 24.8 33 23.7 22.1 30 20.2 26 18.4 23 16.5 15.3 14.8 15.2 20 19 17 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 14: Return to Growth Plan – Enriching the User & Merchant Value Proposition
Return to Growth Plan – Enriching the User & Merchant Value Proposition Provide Canadians with richer content and verticalized, MEDIA transactional search experiences. Evolve our suite of digital solutions by introducing PRODUCTS leads-based performance products. Revamp the sales acquisition engine
Slide 15: Return to Growth Plan – Achieving Notable Financial Milestones
Return to Growth Plan – Achieving Notable Financial Milestones Debt Free Capital Growth in Structure Profitability (EBITDA) Growth in Revenues Growth in the Customer Count 2017 2018 15
Slide 16: Improving Trends in Revenue Performance
Improving Trends in Revenue Performance $220.6 $218.4 $215.3 $205.9 $204.8 Total Revenues (in C$ millions) 5Q Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Year-over-Year -9% -8% -8% -8% -7% Decline Rate1 Digital Revenues as a 49% 52% 54% 55% 57% % of Total Revenues Revenue decline rates will consistently
Slide 17: Sustainable Print and Digital Revenue Performance
Sustainable Print and Digital Revenue Performance Digital Revenue Growth Rates to be Maintained Print Revenue Decline Rates Have Stabilized in the High Single Digits (in millions, unless otherwise noted) (in millions, unless otherwise noted) YoY Growth: YoY Growth: +10% +12% +9% +9% +7% -22% -23% -2
Slide 18: Protecting Profitability During our Digital Transformation
Protecting Profitability During our Digital Transformation 81 75 71 65 62 EBITDA (in C$ millions) Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EBITDA Margin 37% 34% 30% 34% 30% Profitability will be protected as investment levels abate and benefits are realized from the implementation of cost saving init
Slide 19: Investing in Operational Efficiencies to Promote Cost Savings
Investing in Operational Efficiencies to Promote Cost Savings Expected Annualized Cost Savings of $25 million by 2016 Targeted Print Insourcing Print New Print Upgrading IT Operational Directory Distribution Publishing Platform Datacenters Excellence Distribution Eliminating distribution An initiati
Slide 20: Investment in Digital Media will Also Protect Long-Term Profitability
Investment in Digital Media will Also Protect Long-Term Profitability Relative Size of Gross Margins of our Digital Solutions Print High Margin Online & Mobile Priority Placement Websites Mid- Margin SEO Presence Pro Leverage insourced traffic to deliver Low SEM high-margin performance-based Margin
Slide 21: Transferring Additional Value to Shareholders via Debt Reduction
Transferring Additional Value to Shareholders via Debt Reduction ~$330 million of debt repaid since December 31, 2012 (in millions of C$) June 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Senior Secured Notes 1 $473 $507 $647 $800 Exchangeable Debentures 2 $90 $89 $88 $87 Obligations Under Fin
Slide 22: Thank You
Thank You