Tx Group Ag · SIX:TXGN
Tx — Tamedia — H1 2018 Earnings Presentation
43 slides from Tx's earnings presentation, Aug 28, 2018
Slide 1: Page 1
Page 1
Slide 2: Half-year figures 2018
Half-year figures 2018 Page 2 28 August 2018
Slide 3: Pietro Supino, Publisher & Chairman
Pietro Supino Publisher & Chairman of the Board of Directors Page 3 28 August 2018
Slide 4: Christoph Tonini, Chief Executive Officer
Christoph Tonini Chief Executive Officer Page 4 28 August 2018
Slide 5: IAS 19 and payment default affect result
Business results 2018-6 IAS 19 and payment default affect result 2017-6 2018-6 -28 -9 0% 24 55 478 478 19.9% 11.0% 45 2017-6 2018-6 -4 Pension costs pursuant EBIT margin Normalised result to IAS 19 in CHF millions -33% 127 -45% -48% 85 95 77 53 40 Revenue EBITDA EBIT Net income Revenue and net incom
Slide 6: Organic decline in publishing areas
Results and market environment Organic decline in publishing areas 2017-6 297 2017-6 298 Paid Media -4% -4% 2018-6 285 2018-6 285 -12 -13 2017-6 72 2017-6 72 Free Media and -5% +6% Commercialisation 2018-6 68 2018-6 76 -4 +4 2017-6 118 2017-6 118 Marketplaces and +6% +6% Ventures 2018-6 125 2018-6 1
Slide 7: Print advertising market: daily press with biggest losses
Results and market environment Print advertising market: daily press with biggest losses 2017-6 2018-6 -12% 162 142 -20 -8% 117 108 -9 -19% -8% -13% 52 42 -10 -9% 39 34 -10% -8% 18 16 11 10 10 9 11 10 Daily press I Daily press II/III Regional Sunday press Financial and Consumer press Special press S
Slide 8: Digital offers: 39% revenue and 70% EBITDA share
Business results 2018-6 Digital offers: 39% revenue and 70% EBITDA share Marketplaces and 2017-6 2017-6 2017-6 Ventures Publishing Digital 37% 50% 49% Publishing Print 26.1% 23.2% 37.9% 41.0% 7.7% 14.3% 61.3% 13.2% 68.0% 8.8% 8.9% 14.7% 2018-6 2018-6 2018-6 Pro forma revenue share of digital Pro for
Slide 9: Digital offers account for 45 per cent of Publishing EBIT
Business results 2018-6 Digital offers account for 45 per cent of Publishing EBIT Publishing Print Publishing Digital 2017-6 2017-6 2017-6 16% 15% 19% 84% 85% 81% 23.2% 37.9% 41.0% 17.8% 22.8% 7.7% 44.6% 55.4% 14.7% 8.9% 77.2% 82.2% 2018-6 2018-6 2018-6 Revenue EBITDA EBIT Page 9 Employee pension co
Slide 10: Marketplaces and Ventures with biggest EBITDA contribution
Business results 2018-6 Marketplaces and Ventures with biggest EBITDA contribution 298 2017-6 285 2018-6 EBITDA EBIT EBITDA EBIT EBITDA EBIT margin: margin: margin: margin: margin: margin: 7.6% 2.6% 19.4% 16.8% 42.6% 29.4% 2017-6: 2017-6: 2017-6: 2017-6: 118 125 2017-6: 2017-6: 12.5% 7.7% 26.3% 24.3
Slide 11: Paid Media
Paid Media Page 11
Slide 12: Above-average decline in the advertising market
Paid Media Above-average decline in the advertising market 2017-6 The key points -4% 2018-6 − Advertising market declined sharply for 298 285 newspapers and consumer magazines − Publicitas bankruptcy resulted in a valuation allowance of CHF 3 million (recorded as an expense) − Newspaper printing fac
Slide 13: Harmonised editorial system and layout for daily titles
Paid Media Harmonised editorial system and layout for daily titles Tamedia Editorial Office & TES − News platforms (desktop, mobile and apps) will go online in Q4, boasting state-of-the-art usability based on user feedback and extensive user tests − In addition, we regularly conduct A/B and usabilit
Slide 14: Encouraging performance of paid newsplatforms offer
Paid Media Encouraging performance of paid newsplatforms offer 70,286 67,014 66,996 64,033 64,083 60,093 +55% 55,508 56,711 +98% 51,507 53,223 48,670 45,355 45,902 42,862 39,275 39,640 40,317 35,506 37,108 Jan 17 Feb 17 Mar 17 Apr 17 May June July Aug 17 Sept Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 1
Slide 15: High capacity utilisation at printing facilities
Paid Media High capacity utilisation at printing facilities thanks to third-party orders Zurich printing facility Berne printing facility Bussigny printing facility Page 15
Slide 16: Free Media and Commercialisation
Free Media and Commercialisation Page 16
Slide 17: Revenue increase due to the integration of Neo Advertising
Free Media and Commercialisation Revenue increase due to the integration of Neo Advertising 2017-6 − Acquisition of a majority stake in Neo Advertising; integration of Neo Advertising into 2018-6 +6% the Advertising & Free Media segment 76 − From July, Le Matin will continue as a digital 72 brand wi
Slide 18: Majority stake in Neo Advertising; heute.at picks up sharply
Free Media and Commercialisation Majority stake in Neo Advertising; heute.at picks up sharply June 17 June 18 In millions +96% 11 − Acquisition of majority stake in Neo Advertising; integration of Neo Advertising into the Advertising & Free Media segment at the end of February 2018 6 +60% − Revenue
Slide 19: Video and advertising offer performing very well on social media
Free Media and Commercialisation Video and advertising offer performing very well on social media Reach “Pro Infirmis” 22 posts and around 500,000 visits Monobrand & reach “Bio familia” 26 posts and around 410,000 visits in partnership with “Picstars” Jan 18 Feb 18 Mar 18 Apr 18 May 18 June 18 Examp
Slide 20: Marketplaces and Ventures
Marketplaces and Ventures Page 20
Slide 21: Marketplaces and Ventures with biggest EBITDA contribution
Marketplaces and Ventures Marktplaces and Ventures with biggest EBITDA contribution 2017-6 − Positive revenue trend and above-average net income +6% 2018-6 − JobCloud put in another very good performance 118 125 − Homegate kept the result at a high level − New technology underpinning ricardo.ch − Su
Slide 22: Classifieds again improved on already excellent results
Business results 2018-6 Classifieds again improved on already excellent results 76 43 83 25 17 2 0 52 InInvestments in 25 tutti.ch and Ricardo 19 1 Revenue EBITDA -1 Revenue EBITDA Revenue EBITDA Classifieds Marketplaces Services & Ventures EBITDA margin: 62.4 per cent EBITDA margin: -2.2 per cent E
Slide 23: Homegate achieved a stable, high-level result
Marketplaces and Ventures Homegate achieved a stable, high-level result -1% 2017-6 Investments in new ClubOne products 2018-6 Premium Unlimited listing number of -4% advertise- ments – at a Top flat rate listing Regio Star Revenue EBITDA Revenue and EBITDA Initial performance of ClubOne offer is abo
Slide 24: JobCloud benefited from a booming job market
Marketplaces and Ventures JobCloud benefited from a booming job market +13% 2017-6 2018-6 +22% 2017-6 +11% 2018-6 Orders +4% Revenue EBITDA Revenue and EBITDA Visits to JobCloud network Page 24
Slide 25: Ricardo: reprogramming almost complete
Marketplaces and Ventures Ricardo: reprogramming almost complete − New page is already fielding over 80 per cent of traffic − New platform is cloud-based − Increase in sessions − Introduction of a new, uniform fee model − No listing fee Page 25
Slide 26: Doodle: significant growth in scheduling polls
Marketplaces and Ventures Doodle: significant growth in scheduling polls − Significant increase in scheduling polls (14 per cent) and users (6 per cent) compared to the previous year − Major expansion of Doodle team to help drive further growth in scheduling polls and subscription solutions; increas
Slide 27: Tutti: significant increase in users
Marketplaces and Ventures Tutti: significant increase in users − Number of advertisements up 29 per cent year-on-year − Number of visits up 7 per cent − Around 400,000 active users – up 25 per cent year-on-year − Launch of new advertising campaign in autumn 2018 − Platform continues to be an investm
Slide 28: Projects and outlook
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Slide 29: Entire advertising range from a single service provider
29 Projects and outlook Entire advertising range from a single service provider • Digital out-of-home • Mobile • Online • Radio • Television • Magazines • Newspapers Page 29
Slide 30: Michi Frank joins the Management Board
30 Projects and outlook Michi Frank joins the Management Board Christoph Brand Classifieds & Christoph Tonini Marketplaces CEO Tamedia Samuel Hügli Raoul Gerber Technology & Deputy CEO/COO Goldbach Group Ventures Michi Frank Andreas Schaffner CEO Goldbach Group Publishing Services Lukas Leuenberger
Slide 31: After merger: Investment in the future of advertising products
31 Projects and outlook After merger: Investment in the future of advertising products − Goldbach and Tamedia are now in an even better position to identify trends quickly and develop new technologies and advertising forms fast and efficiently − The complementary inventory of Goldbach and Tamedia of
Slide 32: Planned shift to net presentation; slightly higher margin
32 Tamedia and Goldbach Group Planned shift to net presentation; slightly higher margin Pro forma consolidated • Conversion from previous gross report to net income statement 2018-6 (in CHF million) presentation; increase of operating income by CHF 47 millions 525 • Additional EBITDA of CHF 16.6 mil
Slide 33: Acquisition of the Basler Zeitung; sale of gazettes
33 Projects and outlook Acquisition of the Basler Zeitung; sale of gazettes Fleury COMCO Zeitungshaus AG decision: December 2018 Page 33
Slide 34: Planned acquisition of a majority stake in Zattoo
34 Projects and outlook Planned acquisition of a majority stake in Zattoo − Tamedia increases its stake in Zattoo International AG to more than 50 per cent − Zattoo is the Swiss and German market leader in Internet TV − Strategic partnership between Tamedia and Goldbach opens up new synergies for ma
Slide 35: Sandro Macciacchini, Chief Financial Officer
Sandro Macciacchini Chief Financial Officer & Head of Human Resources Page 35 28 August 2018
Slide 36: EBIT: sharp rise in personnel costs as a result of IAS 19
Business results 2018-6 EBIT: sharp rise in personnel costs as a result of IAS 19 0% 12% 25% -33% 0% 3% -45% 478 400 85 8 15 53 18 Revenue Operating Net income share EBITDA Depreciation and Depreciation and EBIT expenses of associated amortisation amortisation as companies/JVs a result of company me
Slide 37: 5-year comparison of EBITDA including and excluding IAS 19
Business results 2018-6 5-year comparison of EBITDA including and excluding IAS Including IAS 19 Excluding IAS 19 EBITDA EBITDA EBITDA EBITDA EBITDA margin: margin: margin: margin: margin: 20.7% 21.3% 22.0% 21.7% 18.7% 127 111 114 113 111 107 104 100 85 90 2014-6 2015-6 2016-6 2017-6 2018-6 EBIT in
Slide 38: Tax rate of 24.2 per cent
Business results 2018-6 Tax rate of 24.2 per cent -45% k.A. -44% -29% -48% 53 53 0 13 40 14** 26* EBIT Financial result Net income before taxes Income taxes Net income EBIT and net income in 2018-6 CHF millions * Attributable to Tamedia shareholders **Attributable to minority shareholders Page 38
Slide 39: Net income before taxes includes one-off effects worth CHF 7 million
Business results 2018-6 Net income before taxes includes one-off effects worth CHF 7 million 55 45 2 2 40 5 Valuation allowance of receivables following Publicitas bankruptcy Net income Other operating Provisions for Tax effect of Net income Net income excluding expenses social plans one-off effects
Slide 40: Cash flow from operating activities fell by 4 per cent
Business results 2018-6 Cash flow from (used in) operating activities before financial result and taxes fell by 4 per cent -4% Cash and cash equivalents, 30 -8% 124 June 2018: CHF 144.3 million 119 107 99 +88% -42% 11 21 2 -21 -57 2017-6 -98 2018-6 Cash flow from (used Cash flow from (used Cash flow
Slide 41: Capex at 2.3 per cent
Business results 2018-6 Capex at 2.3 per cent In per cent In CHF millions 60 10% 51 9% 50 8% 44 40 7% 34 6% 30 5% 23 25 22 21 4% 20 14 3% 11 12 11 11 11 11 10 8 2% 7 1% 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018-6 Investment in property, plant and equipment
Slide 42: Equity ratio still at 78 per cent
Business results 2018-6 Equity ratio still at 78 per cent 8% Current assets 8% 14% Non-current assets 14% Current liabilities 78% Non-current liabilities 78% Equity 331 354 339 351 190 196 2,182 2,176 Excluding minority 1,970 1,969 holdings, the equity ratio is 69 per cent. 2017-12 2017-12 2018-6 20
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