Slide 1: ENIRO Q1 REPORT
ENIRO Q1 REPORT 2013-04-25 Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR
Slide 2: CEO Introduction & Summary
CEO INTRODUCTION & SUMMARY Refinance done with all six banks in consortium - long-term financing in place, positive for shareholders and Eniro Increased operational flexibility More flexible amortization plan Deliver on EBITDA, cost savings, cash flow and net profit Online/mobile is doubli
Slide 3: A Strong First Quarter; Improvements on Most Parameters
A STRONG FIRST QUARTER; IMPROVEMENTS ON MOST PARAMETERS • Currency SEK 14 M • Divestures/moved publications SEK 8 M • Gule Sider in Norway SEK 33 M -976 Q1 2012 Q1 2013 = total of SEK 55 M 3,515 -73 2,539 959 886 +14 +128 +75 156 170 89 88 13 -39 Revenues EBITDA Net Profit Operating Net Debt Cash Fl
Slide 4: Pros and Cons in the Q1 Report
PROS AND CONS IN THE Q1 REPORT Pros Cons Refinancing in place with all six banks Top-line development EBITDA increasing Online/mobile increasing Continued cost saving Net profit increased substantially Cash flow improving Net debt continued to be lowered 4
Slide 5: Development Net Debt/EBITDA
DEVELOPMENT NET DEBT/EBITDA SEK M X 10 000 5 8 000 4 6 000 3 4 000 2 2 000 1 0 0 2006 2007 2008 2009 2010 2011 12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 Net Debt EBITDA 12 months Net Debt/EBITDA 5
Slide 6: Refinancing
REFINANCING Refinance done with all six banks in consortium (Danske Bank, DNB, Handelsbanken, Nordea, SEB and Swedbank) - long-term financing in place, positive for shareholders and Eniro SEK 3 billion in loan agreement is for three years with a extension to four years, on the condition that Eni
Slide 7: Financial Highlights, Q1 2013
FINANCIAL HIGHLIGHTS, Q1 2013 Revenues SEK 886 M (959), a decline of 8% (-1). Negative currency effects, divestments and discontinued publication of printed products in Norway accounts for 5 percent. Organically revenues declined by 7 percent (-8). Online/mobile organic revenues increased 4% (2)
Slide 8: Q1 Divestures and Acquisitions
Q1 DIVESTURES AND ACQUISITIONS Merger agreement with Norwegian low-price Voice competitor 1888. 60 percent owned by Eniro and 40 percent by Marell Invest AS and TV2 AS est. to increase revenues by some SEK 50 M and EBITDA of some SEK 20 M (full year effect) (SEK 10 M in revenues in Q1) Divesture
Slide 9: Restructuring for Future
RESTRUCTURING FOR FUTURE Restructuring costs of SEK 13 M in Q1 • Majority from reorganizations done within HR, Communication & Brand and Finance support functions • Recruitment function outsourced to Proffice Reorganizations done to support a leaner and more efficient organization 2013 Creates
Slide 10: Product Development in Q1
PRODUCT DEVELOPMENT IN Q1 January 2013 – Integration of Swedish Hemnet into Eniro’s iPad service January 2013 – A new sales concept for print being launched January 2013 – Use your local Eniro services in the other Nordic countries March 2013 – Integration of public transportations in the No
Slide 11: 2013 Focus on Strengthening Online Offering
2013 FOCUS ON STRENGTHENING ONLINE OFFERING Future product development done with the business model as backbone and focus on: User experience Quality Service offering Harmonized and modern “same look and feel” on all platforms Product development to fit current search behavior were searches ar
Slide 12: Mobile – Fastest Growing Search Segment
MOBILE – FASTEST GROWING SEARCH SEGMENT Eniro strong market position within mobile advertising 25 percent of searches via mobile devices – selling on par with traffic Mobile revenues increasing by 96 percent in Q1 Mobile revenues to double 2013 to some SEK 300 M 12
Slide 13: Positioned Towards Growing Media Segments
POSITIONED TOWARDS GROWING MEDIA SEGMENTS Swedish media market value, estimate 2013 Development, estimate 2013 (SEK M) (Percentage growth compared with 2012) Search words 3.482 +20% Banners 2.275 +2% Online catalogue 2.291 +2% Mobile 579 +52% Printed catalogue 347 -30% Total value: ~SEK 9Bn Total gr
Slide 14: Traffic Development
TRAFFIC DEVELOPMENT Company searches, monthly average Eniro.se Gulesider.no 14 000 000 14 000 000 12 000 000 10 000 000 10 000 000 8 000 000 6 000 000 6 000 000 2013 2012 2011 2013 2012 2011 2 000 000 4 000 000 Jun Sep Jan Feb Jul Apr Aug Nov Mar Oct Dec May Jan Feb Jun Aug Sep Nov Jul Apr May Oct D
Slide 15: Revenue Bridge Q1 2013
REVENUE BRIDGE Q1 2013 -8% 959 10 18 14 937 2 74 -7% 886 4 1 10 875 10 Reported Divested Currency Moved Organic Online Print Media Other Voice Adj. Acq. Reported revenues business effects publications baseline revenues 2012 4 -43 8 -3 -6 Revenue effect from divested operations, currency and moved
Slide 16: Cost Savings
COST SAVINGS 803 4 13 -79 786 16 94 8 85 9 718 708 9 771 23 86 684 Operating Divested Currency Organic Net Savings Adj Acquired Reported cost 2012 effect baseline Q1 operating 23 costs 2013 YTD 2012 costs YTD 3’rd party cost 2013 YTD Cost ex 3rd party Including acquisitions Total savings in Q1 201
Slide 17: Refinancing, Terms and Conditions
REFINANCING, TERMS AND CONDITIONS Loan facility SEK 3Bn, were of SEK 250 M in RCF. Three years with an extension to four years, on the condition that Eniro replaces SEK 800 M of bank loan with a corporate bond Amortizations Bank loan expected to decrease with some SEK 375 M during 2013. Planned
Slide 18: Change in Net Debt
CHANGE IN NET DEBT Analysis of interest bearing net debt - 3 months - - 12 months- 2013 2012 * 2012/13 * 2012* SEK M Jan-Mar Jan-Mar Apr-Mar Jan-Dec Opening balance -2 704 -3 535 -3 515 -3 535 Operating cash flow 88 13 374 299 Acquisitions and divestments 41 26 85 70 Share issue - -1 377 376 Transla
Slide 19: Comments on Financials
COMMENTS ON FINANCIALS Amortizations Depreciable intangible assets that arose in connection with the acquisition of Findexa 2005 was fully amortized by December 2012. Lowering amortizations 2013 by SEK 283 M 2013 vs. 2012. In the income statement, this is recognized in marketing cost (impacting re
Slide 20: Outlook & Focus for 2013
OUTLOOK & FOCUS FOR 2013 BOTTOM-LINE PROFITABILITY AND EBITIDA To report an EBITDA in line with outcome 2012 To drive net income CASH-FLOW AND CONTINUED DELEVERAGE Strong cash-flow generation Lowered debts REVENUES Digital media, 2/3 of operations, to grow Print and Voice, 1/3 of operati
Slide 21: Appendix
eniro 2 ENIRO Q4 REPORT Appendix
Slide 22: Online/Mobile
ONLINE/MOBILE • Total revenues increases +2 percent • Organic development +4 percent 22
Slide 23: Print
PRINT • Total and organic revenues decreased -43 percent 23
Slide 24: Media Products
MEDIA PRODUCTS • Total revenues increased by 6 percent. Organic revenues increased by 8% • A continued ramp up in growth is expected 24
Slide 25: Voice
VOICE • Total revenues decreased 1 percent. Organic revenues decreased 6 percent • Q1 EBITDA SEK 57 M (57), an EBITDA margin of 31,5 percent (31,1) • Merger agreement with 1888 in Norway 25
Slide 26: Revenue Overview
REVENUE OVERVIEW Revenues by category 2013 2012 * 2012/13 * 2012* SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec Total revenues 886 959 -8 3 926 3 999 Directories 705 776 -9 3 159 3 230 Online/mobile 524 513 2 2 135 2 124 Print 98 172 -43 666 740 Media products 57 54 6 237 234 Other products 26 37 -30 121
Slide 27: EBITDA Overview
EBITDA OVERVIEW EBITDA by revenue area 2013 2012 * 2012/13 * 2012 SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec Total EBITDA 170 156 9 990 976 Directories 126 126 0 777 777 Voice 57 57 0 279 279 Other -13 -27 -66 -80 Items affecting comparability Restructuring costs 13 4 57 48 Other items affecting compar
Slide 28: eniro
eniro 2 Discover local. Search local.