Solocal Group · EURONEXT:LOCAL
Solocal — H1 2017 Earnings Presentation
24 slides from Solocal's earnings presentation, Jul 27, 2017
Slide 1: #H1 2017
#H1 2017 Solocal GROUP bd
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 trend
Slide 3: Agenda
Agenda 1. H1 2017: Business Update 2. H1 2017: Financial performance 3. Outlook 2017 3 #H1 2017 earnings
Slide 4: H1 2017: Business Update
H1 2017: Business Update Christophe Pingard Chief Operating Officer
Slide 5: H1 2017: growth of Internet revenues, good performance of Digital Marketing but margin deterioration
H1 2017 : growth of Internet revenues, good performance of Digital Marketing but margin deterioration Internet revenues of €323m, slightly up to +1%1, the steady growth of Digital Marketing partly offset by the short-term slowdown of Local Search. – Audience : +4%1 visits, of which +17%1 from mobi
Slide 6: H1 2017: Internet revenues
H1 2017: Internet revenues In millions of euros H1 2016 H1 2017 Variation Internet revenues 322 323 +1% Local Search revenues 243 235 -3% # visits (in million) 1,206 1,256 +4% 1 ARPA (in €) 485 492 +1% # clients (in thousand) 501 477 -5% Digital Marketing revenues 78 88 +13% Penetration rate
Slide 7: Local Search highlights
Local Search highlights Bundle offering SHOW ME display + retargeting Medias POC in Vendée of showcasing Display Home professionals’ PagesJaunes Ooreka + 10x more displays achievements on the whole website Mappy avendrealouer Partners Apple Google ProLive launch Bing Facebook Channel Partner of Pres
Slide 8: Continuous audience growth in H1 2017
Continuous audience growth in H1 2017 SoLocal Group audiences1 PagesJaunes visits towards professionals3 in millions of visits in millions of visits 1,256 +4% 1,206 745 772 +4% +4pts 39%2 +17% 35%2 327 381 +17% -3% 418 391 -7% 4 H1 2016 H1 2017 H1 2016 H1 2017 Fixed Mobile Direct & SEO 5 Syndication
Slide 9: Local Search ARPA, a growth slowdown related to the end of offering upgrade effect
Local Search ARPA, a growth slowdown related to the end of offering upgrade effect and to the impact of financial restructuring on commercial activity in Q4 2016 Local Search ARPA1 +8% +4% +1% 2 Long-term trend 12 month base effect H1 2017 (April 2016 - March 2017) 1 Year-on-Year evolution 2 CAGR (C
Slide 10: Slowdown of client base decrease…
Slowdown of client base decrease… Client base -6%1 -5%1 536 K 501 K 477 K H1 2015 H1 2016 H1 2017 1 Year-on-Year evolution of average number of customers 10 #H1 2017 earnings
Slide 11: … thanks to a better retention
… thanks to a better retention Acquisition1 Churn rate2 -2pts 17% 15% 0pt 11% 11% S1 2016 S1 2017 S1 2016 S1 2017 1 Year-on-Year evolution of acquisition rate of customers (Scope : France) 2 Year-on-Year evolution of churn rate of customers (Scope : France) 11 #H1 2017 earnings
Slide 12: Strong Digital Marketing trend
Strong Digital Marketing trend Local Transactional Websites Programmatic Services BOOSTER CONTACT Social SITE PREMIUM 12 #H1 2017 earnings
Slide 13: Alliance Gravity, a new partnership strengthening our footprint and ambitions on data market
Alliance Gravity, a new partnership strenghtening our footprint and ambitions on data market 18 media Partners of SoLocal 2 goals : Enrich our data : daily reach of 44% Develop new offerings based on this data 13 #H1 2017 earnings
Slide 14: H1 2017 Internet revenues and highlights by vertical
H1 2017 Internet revenues and highlights by vertical 1 H1 2017 Internet revenues : €323 millions (+1% ) HEALTH& BtoB HOME RETAIL SERVICES PUBLIC €93m €63m €39m €62m €54m 0% +1% +6% -1% -2% Growth slow downed Positive trend on Strong Digital Strong acceleration by uncertainty Local Search i
Slide 15: H1 2017: Financial performance
H1 2017: Financial performance Virginie Cayatte Chief Financial Officer
Slide 16: H1 2017: Overall financial performance
H1 2017 : Overall financial performance Profitability Net debt 1 In millions of euros In millions of euros H1 2016 H1 2017 Var. 17 vs 16 Var. 16 vs 15 Internet 323 +1% 322 -1% revenues 1 1062 Total revenues 405 386 -5% -9% 3 335 355 31/12/2016 31/03/2017 30/06/2017 EBITDA 112 91 -18% -20% 4.72x 1.46
Slide 17: H1 2017: performance by business line
H1 2017 : performance by business line Internet revenues Print & Voice revenues In millions of euros In millions of euros +1%1 -25%1 322 323 83 62 H1 2016 H1 2017 H1 2016 H1 2017 EBITDA to EBITDA to revenue 28% 25% revenue 27% 15% margin2 margin2 Internet revenues of €323m in H1 2017, up to +1% vs
Slide 18: H1 2017: recurring income of €29m (+11%)
H1 2017 : recurring income of €29m (+11%) In millions of euros, évolution H1 2017 vs H1 2016 (%) Internet revenues1 : 323 (+1%) Total revenues1 : 386 (-5%) Non staff costs Staff costs -101 (-4%) -193 (+3%) Recurring EBITDA2 : 91 (-18%) EBITDA to revenue margin3 : 24% Depreciation and amortisation Co
Slide 19: H1 2017: EBITDA
H1 2017 : EBITDA In millions of euros EBITDA Internet Print & Voice EBITDA Other costs H1 2016 gross margin gross margin H1 2017 EBITDA to revenue 28% 24% margin1 1 Total (Internet + Print & Voice) recurring EBITDA to revenue margin 19 #H1 2017 earnings
Slide 20: H1 2017: Free Cash Flow
H1 2017 : Free Cash Flow In millions of euros Non monetary Cash financial Adjusted 2016 Cash Net change in Operational Corporate Free Cash EBITDA and non income before Free Cash financial income Working CAPEX Free Cash income tax Flow H1 2017 recurring debt Flow postponed in Capital Flow paid H1 201
Slide 21: H1 2017: shareholders' equity and net debt
H1 2017 : shareholders’ equity and net debt Shareholders’ equity Net debt 2 Net debt 1 In millions of euros In millions of euros 1 1062 3 335 355 31/12/2016 31/03/2017 30/06/2017 Expenses Sharehold Sharehold Net gain H1 2017 ers’ equity Capital charged to from earnings ers’ equity 4.72x 1.46x 1.71x
Slide 22: Outlook 2017
Outlook 2017 Christophe Pingard Chief Operating Officer
Slide 23: Outlook for 2017 revised downward
Outlook for 2017 revised downward The sales order dynamic slowed down in Q2 2017. Indeed, the upgrade of our customers' Search offerings towards higher value products, which will ultimately make our audiences more profitable, takes longer than originally planned. Expenses and investments are managed
Slide 24: SoLocal GROUP
SoLocal GROUP Immeuble Citylights – Tours du Pont de Sèvres 204 Rond-point du Pont de Sèvres 92100 Boulogne Billancourt T. 01 46 23 30 93