Slide 1: Eniro Q2 Report
ENIRO Q2 REPORT 2013-07-16 Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR
Slide 2: CEO Introduction & Summary
CEO INTRODUCTION & SUMMARY EBITDA on track with FY guidance Online/mobile is continuing its positive trend Cost savings and cash flow continues to be high A digital media company with 80 percent of ad revenues being digital the transformation is done with profitable long-tail operations in
Slide 3: Financial Highlights, Q2 2013
FINANCIAL HIGHLIGHTS, Q2 2013 Total revenues SEK 893 M (1 001), a decline of 11 percent (-13). Negative currency effects, divestments and moved publications accounts for 7 percent. Organically revenues declined by 4 percent (-9). Online/mobile organic revenues increased 3 percent (1) Cost redu
Slide 4: Financial Development Second Quarter 2013
FINANCIAL DEVELOPMENT SECOND QUARTER 2013 • Currency SEK 22 M • Divestures and moved publications SEK 58 M Q2 2012 = total of SEK 80 M -434 Q2 2013 2,887 -108 2,453 1,001 • Last year net capital gain SEK 893 113 M -17 251 234 -76 +3 156 80 100 103 Revenues EBITDA Net Profit Operating Net Debt Cash F
Slide 5: First 6 Months 2013; Improvements on Most Parameters
FIRST 6 MONTHS 2013; IMPROVEMENTS ON MOST PARAMETERS • Currency SEK 36 M • Divestures and moved publications SEK 67 M -434 = total of SEK 103 M 2,887 6M 2012 2,453 6M 2013 -181 1,960 1,779 -3 407 404 +52 +78 169 191 117 113 Revenues EBITDA Net Profit Operating Net Debt Cash Flow Total revenues SEK
Slide 6: Pros and Cons in the Q2 Report
PROS AND CONS IN THE Q2 REPORT Pros Cons On track for FY EBITDA guidance Top-line development Online/mobile continue its positive trend Cash flow improving Continued cost savings Underline net-profit increases Net debt continued to be lowered Refinancing in place with all six banks 6
Slide 7: 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 13 Q2 Net Debt EBITDA Net Debt/EBITDA 7
Slide 8: Product Development in Q2
PRODUCT DEVELOPMENT IN Q2 April 2013 – New product launch – Eniro is offering its customer Facebook homepage June 2013 – Proffs corporate search service launched on the Swedish newspaper site www.svd.se June 2013 – Launch of improved database content in Norway June 2013 – New more detailed m
Slide 9: Mobile – Fastest Growing Search Segment
MOBILE – FASTEST GROWING SEARCH SEGMENT Eniro strong market position within mobile advertising 29 percent of company- and product search done via mobile devices Mobile revenues increasing by 97 percent in Q2 Mobile revenues to double 2013 to some SEK 300 M 9
Slide 10: 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 3.513 +21% Banners 2.280 +2% Online catalogue 2.255 +-0% Mobile 733 +97% Printed catalogue 338 -30% Total value, Sweden: Total gr
Slide 11: Traffic Development Company Searches, Weekly Average
TRAFFIC DEVELOPMENT Company searches, weekly average Eniro.se Gule Sider.no 4 500 3 000 4 000 2 500 3 500 3 000 2 000 2 500 2 000 1 500 1 500 1 000 1 000 500 500 2011 2012 2013 0 2011 2012 2013 NOV MAR OCT MAY JUL JAN JUN FEB APR SEP DEC AUG 0 OCT NOV MAY JUL JAN MAR JUN FEB SEP APR DEC AUG 3 000 Pa
Slide 12: Revenue Bridge Q2 2013
REVENUE BRIDGE Q2 2013 -11% 1,001 10 22 48 921 14 28 0 3 894 -4% 21 884 10 Reported Divested Currency Moved Organic Online Print Media Other Voice Adjusted Acq. Reported revenues business effects publications baseline 2012 3 -26 1 -11 -11 -2% Revenue effect from divested operations, currency and m
Slide 13: Cost Savings 6M 2013
COST SAVINGS 6M 2013 1.600 1.559 -8 -28 -159 1.550 8 28 1.523 1.500 50 8 1.450 85 1.559 1.400 16 1.380 -165 0 1.472 1.364 16 1.350 80 56 1.380 1.307 0 Operating Divested Currency Organic Net Net Net Net Adj Acquired Reported cost YTD effect baseline Savings Savings Savings Q3 Savings Q4 Operating co
Slide 14: Refinancing
REFINANCING Refinance done with all six banks in consortium - 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 Eniro replaces SEK 800 M of bank loan with a corporate bond I
Slide 15: Change in Net Debt
CHANGE IN NET DEBT Analysis of interest bearing net debt ------- 3 months -------- ------ 6 months ------ 12months 2 013 2012* 2013 2012 * 2012/13 * 2012* SEK M Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jul Jan-Dec Opening balance -2 539 -3 515 -2 704 -3 535 -2 887 -3 535 Operating cash flow 103 100 191 1
Slide 16: 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 17: Outlook & Focus for 2013
OUTLOOK & FOCUS FOR 2013 BOTTOM-LINE PROFITABILITY AND EBITDA 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 operatio
Slide 18: Appendix
eniro 2 ENIRO Q4 REPORT Appendix
Slide 19: 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 20: Online/Mobile
ONLINE/MOBILE • Total revenues increases were flat • Organic development +3 percent 20
Slide 21: Print
PRINT • Total revenues decreased 50 percent • Organic revenues decreased 26 percent 21
Slide 22: Media Products
MEDIA PRODUCTS • Total revenues decreased by 2 percent. • Organic revenues increased by 1 percent 22
Slide 23: Voice
VOICE • Total revenues decreased 7 percent. Organic revenues decreased 11 percent • Q2 EBITDA SEK 73 M (66), an EBITDA margin of 39,7 percent (33,3) 23
Slide 24: Revenue Overview
REVENUE OVERVIEW Revenues by category 2013 2012* 2013 2012 * 2012/13 * 2012* SEK M Apr-Jun Apr-Jun % Jan-Jun Jan-Jun % Jul-Jul Jan-Dec Total revenues 893 1 001 -11 1 779 1 960 -9 3 818 3 999 Directories 709 803 -12 1 414 1 579 -10 3 065 3 230 Online/mobile 549 547 0 1 073 1 060 1 2 137 2 124 Print 8
Slide 25: EBITDA Overview
EBITDA OVERVIEW EBITDA by revenue area 2012 2012* 2013 2012 * 2012/13 * 2012 SEK M Apr-Jun Apr-Jun % Jan-Jun Jan-Jun % Jul-Jul Jan-Dec Total EBITDA 234 251 -7 404 407 -1 973 976 Directories 181 218 -17 307 344 -11 740 777 Voice 73 66 11 130 123 6 286 279 Other -20 -33 -33 -60 -53 -80 Items affecting
Slide 26: Eniro
eniro 2 Discover local. Search local.