Eniro Group Ab Class A · OMXSTO:ENRO
Eniro Group Ab Class A — Q2 2014 Earnings Presentation
23 slides from Eniro Group Ab Class A's earnings presentation, Jul 16, 2014
Slide 1: Eniro Q2 report
Eniro Q2 report Johan Lindgren, CEO Cecilia Lannebo, Head of IR July 16th, 2014
Slide 2: Johan Lindgren, CEO
1. Johan Lindgren CEO
Slide 3: Disappointing development in Sweden during Q2
Disappointing development in Sweden during Q2 Multiscreen revenues Management and organization changes All markets except for Sweden report Eniro.se under the management of Stefan multiscreen growth in Q2 Kercza, CEO of Eniro Denmark All other operations in Sweden under the management of Matti
Slide 4: CEO summary – Q2
CEO summary – Q2 Multiscreen revenues decreased 5% organically EBITDA was SEK 194 M (234 ) Swedish performance not according to plan Incl. SEK 6 M in capital gain, SEK 4 M in what results in weak Desktop development reversed costs for synthetic share program and SEK 1 M in restructuring reserve
Slide 5: Financial development Q2 2014
Financial development Q2 2014 Incl. capital gain of SEK 6 M -11% 1 000 Incl. positive reverse effect of synthetic 893 share program of some SEK 4 M 900 793 800 700 600 500 -24% 400 -17% -9% +69% 300 234 247 194 187 174 Q2 2013 200 103 73 80 100 Q2 2014 0 Revenue EBITDA Adj. EBITDA Net Income Cash Fl
Slide 6: Revenue bridge Q2 2014
Revenue bridge Q2 2014 Reported Organic -11% -9.6% 893 7 22 877 2 84 13 19 2 38 31 793 Reported Currency Divestments Moved Organic Desktop Mobile Campaign Print Other Voice Reported revenues effects publications baseline Q2 - 2014 Q2 - 2013 Q2-2013 -18% 58% 28% -24% -11% -17% Currency, divestments a
Slide 7: Cost savings Q2 2014
Cost savings Q2 2014 1 400 1 380 17 7 1 370 17 2 7 1 350 47 76 1 300 12 1 250 72 1 236 1 380 3’rd party cost 1 200 1 323 61 Cost ex 3rd party 1 150 1 175 0 YTD 2013 Divested Currency Organic Net Net Adj effect baseline Savings Q1 Savings Q2 Operating YTD 13 cost 2014 YTD Total cost savings in second
Slide 8: Mobile first: rapid growth in revenues and traffic
Mobile first: rapid growth in revenues and traffic Mobile revenues increased 58% to SEK 104 M Share of search (UB-unique browsers) via mobile devices (66) in Q2 compared with last year % Mobile search 13% of total revenues in Q2 30 27% of all searches are done on mobile devices 25 Eniro market share
Slide 9: Activities in Q2 and following close of period
Activities in Q2 and following close of period Divesture of Krak Markedsdata (KMD) in Management/ and organization changes in Denmark Eniro Sweden In line with strategy to concentrate on Stefan Kercza CEO Eniro Denmark digital local search appointed acting manager of eniro.se Mattias Wedar app
Slide 10: Development net debt/EBITDA rolling 12 months
Development net debt/EBITDA rolling 12 months 10 000 5 4,5 8 000 4 3,5 6 000 3 2,5 4 000 2 1,5 2 000 1 0,5 0 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 2014 Q2 2014 EBITDA Net Debt Net debt/EBITDA 10
Slide 11: Change in net debt
Change in net debt Analysis of interest-bearing net debt Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2014 2013 2014 2013 2013/14 2013 Opening balance -2 374 -2 539 -2 340 -2 704 -2 453 -2 704 Operating cash flow 174 103 121 191 259 329 Acquisitions and divestments 0 0 49 41 41 33 Share iss
Slide 12: Eniro the local search company
Eniro the local search company Multiscreen growth segments Mature segments Desktop search Print Voice Mobile search Hyper local Directory assistance books in Sweden, service via phone Listing, ranking and visibility in local search services on Norway and and sms in Sweden, desktop and mobile D
Slide 13: Outlook 2014
Outlook 2014 EBITDA and balance sheet Adjusted EBITDA 2014 of some SEK 850 M Long-term net debt/EBITDA not to exceed 2x Cash flow and investments Investments approx. SEK 150 M Working capital to be some SEK 120-130 M negative Paid-tax some SEK 25 M Strong cash-flow generation 13
Slide 14: Appendix
Eniro Q2 report Appendix
Slide 15: Financial commentary
Financial commentary Amortizations Print conversion The Norwegian brands Gule Sider and Ditt Conversion of Gula Sidorna in Sweden into Distrikt annual amortization of some SEK digital performing according to 95 M. Q2 impact SEK 20 M expectations Amortization of Norwegian Voice brand 1888 of SE
Slide 16: Refinancing – terms & conditions
Refinancing – terms & 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 Scheduled amortizations for 2014-2016 approx. SEK 375 M annually SEK 186 M amo
Slide 17: Revenues
Revenues Revenue by category Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2014 2013 % 2014 2013 % 2013/14 2013 Desktop search 393 483 -19 809 956 -15 1 687 1 834 Mobile search 104 66 58 202 117 73 372 287 Campaign products 60 59 2 135 116 16 265 246 Multiscreen 557 608 -8 1 146 1 189 -4 2 3
Slide 18: EBITDA
EBITDA EBITDA by revenue area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2014 2013 % 2014 2013 % 2013/14 2013 Local search 141 181 -22 341 307 11 704 670 Voice 62 73 -15 111 130 -15 232 251 Other -9 -20 55 -31 -33 6 -70 -72 Total EBITDA 194 234 -17 421 404 4 866 849 Items affecting compar
Slide 19: Income statement
Income statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2014 2013 2014 2013 2013/14 2013 Gross operating revenue 794 895 1 587 1 783 3 472 3 668 Advertising tax -1 -2 -2 -4 -6 -8 Operating revenue 793 893 1 585 1 779 3 466 3 660 Production costs -185 -197 -379 -412 -842 -875 Sales cos
Slide 20: Balance sheet
Balance sheet Equity and liabilities Equity Consolidated balance sheet Share capital 309 2 529 309 Jun. 30 Jun. 30 Dec. 31 Additional paid in capital 5 125 5 125 5 125 Reserves -205 -243 -360 SEK M 2014 2013 2013 Retained earnings -1 314 -3 830 -1 421 Assets Total equity share holders of the Parent
Slide 21: Cash flow statement
Cash flow statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M 2014 2013 2014 2013 2013/14 2013 Operating income 129 192 289 323 500 534 Depreciation, amortization and impairment 65 42 132 81 366 315 Other non-cash items 12 -26 -94 -32 -56 6 Financial items, net -35 -40 -70 -79 -143 -152
Slide 22: Eniro share price and shareholder development
Eniro share price and shareholder development 70 60 Share price development year-to-date 2014 = -8% 50 Share price development June 2014 = -16% 40 30 20 10 0 Preference Changes since June 30, Dec 30, 10 largest holders (grouped), June 300h 2014 Capital % B-shares shares 30/12-2013 2014 2013 Swedbank
Slide 23: eniro
eniro 2 Discover local. Search local.