Slide 1: Eniro Q3 Report
ENIRO Q3 REPORT 2013-10-23 Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR
Slide 2: Johan Lindgren, CEO
01 Johan Lindgren CEO
Slide 3: Eniro – The local search company
Eniro – The local search company “In the digital value chain Eniro is an aggregator: a search company that filters and organizes local information“ 3
Slide 4: CEO summary
CEO summary Continued strong mobile growth – “Mobile first” Launch of mobile search words & extended mobile packages As earlier communicated, revenues in the quarter negatively impacted by: Weak development in Norway Quarterly seasonality that hampers order intake and cash-flow Multiscre
Slide 5: Strategic decisions taken
Strategic decisions taken Print phased out in 2014 and (Eniro, Gule Sider, Krak and Panorama Firm) becomes completely digital – focus & efficiency (Q2 last distribution Gula Sidorna) Print revenues 2014 from local books some SEK 250 M Further actions to improve efficiency and time to market
Slide 6: Q3 key developments
Q3 key developments Mobile search revenues increased 82% organically Mobile searches of total searches on products-, services and categories continues to increase 33% Multiscreen revenues were down organically 3% y/y (+5% excluding Norway) Multiscreen revenues increased to 79% (70) of total
Slide 7: Financial development Q3 2013
Financial development Q3 2013 SEKm 3 500 -12% 3 000 2 519 2 500 2 000 1 500 -10% 1 000 857 -14% +32% -94M 500 225 90 0 -69 Revenues EBITDA Net Profit Operating Cash Net Debt -500 Flow Q3 2012 Q3 2013 7
Slide 8: Revenue development per country
Revenue development per country SEKm 1 200 1 000 800 600 400 200 0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Sweden Norway Denmark Finland Poland 8
Slide 9: Group revenues and EBITDA-margin
Group revenues and EBITDA-margin SEKm 1 200 30% 1 000 25% 800 20% 600 15% 400 10% 200 5% 0 0% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Revenues EBITDA-margin 9
Slide 10: Mobile – fastest growing search segment
Mobile – fastest growing search segment Strong market position within mobile advertising Mobile revenues increased 79% to SEK 68 M in Q3 Mobile search 8% of total revenues in Q3 We expect mobile revenues to double in 2013 to SEK 300 M (147) Target of SEK 900 M in revenues in 2015 10
Slide 11: Growing traffic and database content
Growing traffic and database content Traffic development, total and mobile Traffic Million 25 35 % There are 6,5 M unique users 20 30 (browsers) per week visiting Eniro 25 15 20 properties 15 10 10 Mobile search accounts for 33 percent 5 5 of total product and company searches 0 0 JAN-13 MAR-13
Slide 12: Positioned to growth
Positioned to growth SEKm Swedish relevant market value 9 000 140% 113% 8 000 120% 7 000 100% 80% 6 000 60% 5 000 20% 40% 4 000 9% 1% -1% 20% 3 000 0% 2 000 -20% -40% 1 000 -40% 0 -60% Mobile Search Total Banners Online Printed words Internet Catalogue Catalogue Market value 2013E Growth (y/y) 2013E
Slide 13: Highlights
Highlights Print phased out in 2014 and all core brands becomes digital Reorganization to improve time-to-market, productivity and cost Financial targets * mobile revenues of SEK 900 M in 2015 * net debt/EBITDA not to exceed 2 (former guidance 2.5) * adjusted EBITDA for 2013 at least in line w
Slide 14: Focus areas going forward
Focus areas going forward Continued focus on: Product mix transition to support revenue growth Cost efficiency EBITDA and bottom-line profitability Operating cash flow Financial position 14
Slide 15: Mattias Lundqvist, CFO
02 Mattias Lundqvist CFO
Slide 16: Development Net debt / EBITDA
Development Net debt / EBITDA SEK million 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 13 Q2 13 Q3 Net Debt EBITDA Net Debt/EBITDA 16
Slide 17: Revenue bridge Q3 2013
Revenue bridge Q3 2013Total revenue development -10% 948 Organic revenue development 7 -8% 10 7 924 7 47 27 31 9 29 857 850 7 Reported Divested Currency Moved Organic Desktop Mobile Campaign Print Other Voice Adjusted Acq. Reported revenues business effects publications baseline 9M 2012 -3% -8% +1%
Slide 18: Cost savings in Q3 2013
Cost savings in Q3 2013 3’rd party cost Cost ex 3rd party Including acquisitions 2.300 2.257 11 -223 30 2.250 11 30 2.216 2.200 53 8 2.150 85 2.100 2.257 0 2.050 -236 80 22 2014 2.163 1.993 22 2.000 7 1.950 71 66 2.015 1.927 0 Operating Divested Currency Organic Net Net Net Net Adj Acquired Reported
Slide 19: Change in Net debt
Change in Net debt Analysis of interest bearing net debt Q3 2013 Q3 2012 YTD 2013 YTD 2012 2012/13 FY 2012 SEK M Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec Opening balance -2 453 -2 887 -2 704 -3 535 -2 863 -3 535 Operating cash flow -69 25 122 138 283 299 Acquisitions and divestments -2 1 39 2
Slide 20: Financial commentary
Financial commentary Amortizations Re-classification of the Norwegian trademarks Gule Sider and Ditt Distrikt, from indefinite to a limited time frame of 5-10 years. Annual amortization of some SEK 95 M Investments Expectation of investments for full year 2013 approx. SEK 150 M Cash-flow & Wor
Slide 21: Outlook
Outlook Mobile revenues is expected to reach SEK 900 M in 2015 Adjusted EBITDA 2013 at least to be in line with 2012 Long-term Eniro expects to grow in line with the advertisement market Long-term net debt/EBITDA not to exceed 2x Positive cash flow from operations Long term dividend poli
Slide 22: Appendix
eniro @ Discover local. Search local. ENIRO Q3 REPORT Appendix
Slide 23: Financial commentary
Financial commentary Amortizations Depreciable intangible assets that arose in connection with the acquisition of Findexa 2005 was fully amortized by December 2012 Lowering amortizations by SEK 283m 2013 vs. 2012. Recognized in marketing cost (reported Q3 marketing cost lowered y/y by SEK 37 M
Slide 24: 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 P
Slide 25: Multiscreen – Q3
Multiscreen – Q3 Revenues - Multiscreen SEKm Total revenues decreased by 3% 700 Organic revenues decreased by -3% 600 3% 500 400 300 200 100 0 Q1 Q2 Q3 Q4 2012 2013 25
Slide 26: Local search – Q3
Local search – Q3 Total revenues decreased by 9% Revenues - Local Search SEKm Organic revenues decreased by 900 800 -9% 6% 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 2012 2013 26
Slide 27: Voice – Q3
Voice – Q3 Total revenues decreased 12% SEKm Revenues - Voice Organic revenues decreased 16% 250 EBITDA SEK 66 M (73) 200 -12% EBITDA margin of 40% (39) 150 100 50 0 Q1 Q2 Q3 Q4 2012 2013 27
Slide 28: Revenues
Revenues Organic revenue by category Q3 2013 Q3 2012 YTD 2013 YTD 2012 2012/13 FY 2012 % Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec Desktop search -10 -4 -5 -3 n.a. -3 Mobile search 82 171 94 128 n.a. 116 Campaign products 14 18 7 23 n.a. 26 Multiscreen revenues -3 2 2 3 n.a. 3 Print -20 -30 -3
Slide 29: EBITDA overview
EBITDA overview EBITDA by revenue area YTD Q3 2013 Q3 2012 2013 YTD 2012 2012/13 FY 2012 SEK M Jul-Sep Jul-Sep % Jan-Sep Jan-Sep % Oct-Sep Jan-Dec Local search 168 187 -10 475 531 -11 721 777 Voice 66 73 -10 196 196 0 279 279 Other -9 1 -42 -59 -63 -80 Total EBITDA 225 261 -14 629 668 -6 937 976 Ite
Slide 30: Summary of Q3 2013
Summary of Q3 2013 Highlights during the quarter Mobile growth 82% All core brands becomes digital (Eniro, Gule Sider, Krak, Panorama Firm) Reorganization to improve efficiency and lower cost base Focus areas/expectations going forward Top-line growth Cash-flow und profitability Mobi
Slide 31: Slide 31