Yellow Pages Ltd. · TSX:Y
Yellow Pages — Q3 2015 Earnings Presentation
19 slides from Yellow Pages's earnings presentation, November 2015
Slide 1: Yellow Pages Limited Q3 2015 Investor Presentation
Yellow Pages Limited Q3 2015 Investor Presentation 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: One of Canada's Leading Digital Advertising Companies
One of Canada’s Leading Digital Advertising Companies One of Canada’s Most Adopted Digital Properties for Local Discovery A Rich, Diversified • Over 490 million organic visits executed across our network of digital properties annually Digital Media • 14th most-visited digital property in Canada, gar
Slide 4: Ongoing, Successful Execution of our Return to Growth Plan
Ongoing, Successful Execution of our Return to Growth Plan KEY OBJECTIVES MILESTONES ACHIEVED1 Annualized Organic Digital Visits Grow Digital Traffic up 20% to Exceed 490 Million USERS Provide Canadians with richer content and Introduction of an extensive verticalized suite of properties; verticaliz
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: Growing, Comprehensive Database of Local Information
Growing, Comprehensive Database of Local Information Editorials Agreement with Apple Maps Richer Profiles Over 20,000 editorials available to Leveraging YP’s rich content to fuel Larger database of merchant info, help Canadians better discover their Apple Maps’ search engine results multimedia, rati
Slide 7: Going Beyond Search & Discovery to Meet the Local Needs of Users
Going Beyond Search & Discovery to Meet the Local Needs of Users Monetizing the C2C Economy by Helping Canadians Save Time and Flexibility to Make Table Empowering Homeowners to Sell Their Money in Their Everyday Shopping Reservations On Your Phone Properties More Effectively Errands 7
Slide 8: Growing Usage and Adoption Across our Digital Media Properties
Growing Usage and Adoption Across our Digital 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% +12% 123.1 117.4 1. Google 29.2 M 96% 110.2 108.2 104
Slide 9: Uniquely Positioned to Succeed in the Canadian Marketing Landscape
Uniquely Positioned to Succeed in the Canadian Marketing Landscape * Size of bubble denotes approximate advertising Currently revenue in Canada addressing ~22% of the Canadian SME market Local Digital Search Engine People Marketing Boutiques Breadth of Product Offerings Self-Serve Website Local Plat
Slide 10: Evolving, Comprehensive Portfolio to Address SME Needs at all Price Points
Evolving, Comprehensive Portfolio to Address SME Needs at all Price Points $10-50 $50-100 $100-250 $250-1000 $1000+ Presence Line-Up (Essential, Pro, Extended) Website Fulfillment Facebook Solutions Build Your Digital Presence Search Engine Optimization Online & Mobile Priority Placement (Fixed Pric
Slide 11: Significant Deceleration in Net Customer Count Decline
Significant Deceleration in Net Customer Count Decline Annual Customer Acquisition1 Net Customer Count Decline1,2 (in thousands) (in thousands, unless otherwise noted) 27.2 30 24.8 23.7 22.1 26 20.2 23 18.4 16.5 20 19 17 14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 TTM 2015 TTM 2014 2015 Custom
Slide 12: On Track to Achieving Key Financial Milestones
On Track to Achieving Key Financial Milestones Debt Free Capital Growth in Structure Profitability (EBITDA) Growth in Revenues Growth in the Customer Count 2017 2018 12
Slide 13: Delivering Sustainable Print and Digital Revenue Performance
Delivering Sustainable Print and Digital Revenue Performance… Print Revenue Performance Digital Revenue Performance (in millions, unless otherwise noted) (in millions, unless otherwise noted) YoY Growth: YoY Growth: -23% -22%1 -22% -21% -21% +12% +9% +9% +7% +12% 105 128 98 93 88 117 116 83 114 113
Slide 14: Reducing Revenue and EBITDA Declines
…and Reducing Revenue and EBITDA Declines Consolidated Revenue Performance EBITDA Performance (in millions, unless otherwise noted) (in millions, unless otherwise noted) 218 75 215 211 71 206 205 65 64 62 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2014 2015 2014 2015 Year-over-Year EBITDA -8% -8% -8% -7% -4% 34%
Slide 15: Profitability Profile Supported by the Strength of Our Media Network
Profitability Profile Supported by the Strength of Our Media Network… Relative Size of Gross Margins of our Digital Solutions Print High Margin Online & Mobile Priority Placement Websites Over 93% of traffic on Yellow Pages’ digital properties is direct or organic Mid- Margin SEO Presence Pro/Extend
Slide 16: Realization of Operational Efficiencies
…As Well as the Realization of Operational Efficiencies Targeted Print Insourcing Print Corporate New Print Publishing Upgrading IT Directory Distribution Distribution Realignment Platform Datacenters Eliminating distribution Insourcing specific Leveraging the progress Decommissioning and Consolidat
Slide 17: Delivering Strong Free Cash Flow to Significantly Reduce Outstanding Debt
Delivering Strong Free Cash Flow to Significantly Reduce Outstanding Debt An additional $66 million repayment anticipated on November 30, 2015 (in millions of C$) Sep. 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
Slide 18: Key Investment Considerations
Key Investment Considerations Leading Canadian destination for consumers to discover, interact and transact within their local neighbourhoods Access to one of Canada’s largest audiences, with over 490 million organic visits made to our network of digital properties annually Powering the local econom
Slide 19: Thank You
Thank You