Yellow Pages Ltd. · TSX:Y
Yellow Pages — Q3 2016 Earnings Presentation
17 slides from Yellow Pages's earnings presentation, November 2016
Slide 1: Investor Presentation Q3 2016
Investor Presentation Q3 2016
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of Yellow Pages Limited. These statements are considered “forward-looking” because they are based on current expectations about our business an
Slide 3: The Way Consumers and Merchants Are Interacting is Evolving
The Way Consumers and Merchants Are Interacting is Evolving The vast majority of Canadians are connected online (web and mobile) More than ever before, Canadians are researching online before making a purchase decision… …and turning to their smart devices to transact directly within their neighbourh
Slide 4: Our Mission
Our Mission We aim to champion the digital economy by offering consumers and merchants media and marketing solutions that help them interact and transact 4
Slide 5: Acting as the Chief Marketing Officer for SMEs
Acting as the Chief Marketing Officer for SMEs Owned & Operated Solutions Paid advertising on Yellow Pages’ verticalized network of digital and print media Services Dining Real Retail Estate Comprehensive Digital Services Full suite of digital solutions that attract consumers wherever they search We
Slide 6: Uniquely Positioned to Capture Further Growth in the Canadian Digital Marketing Landscape
Uniquely Positioned to Capture Further Growth in the Canadian Digital Marketing Landscape * Size of bubble denotes approximate advertising revenue in Canada Serving over 20% of the Canadian SME market Search Engine People Local Digital Marketing Product Offerings Boutiques Breadth of Self-Serve Webs
Slide 7: Acting as a Leading Digital Advertising Agency for National Brands
Acting as a Leading Digital Advertising Agency for National Brands Creating one of Canada’s leading digital advertising agencies, leveraging proprietary programmatic technologies and an extensive publisher network to connect Canadians with the brands they love Network of Brand Relationships Extensiv
Slide 8: A Verticalized Digital Experience for Consumers
A Verticalized Digital Experience for Consumers Business & People Search Retail YP App YP Shopwise Discover everything the local Everyday shopping app to help Canadians save time neighbourhood has to offer and money Canada411 & 411.ca RedFlagDeals Network of Canada’s most frequented and Canada’s lea
Slide 9: Uniquely Positioned to Capture Audience Growth in Key Verticals
Uniquely Positioned to Capture Audience Growth in Key Verticals Further Differentiating Our Properties Via Key Search Verticals Remain Underpenetrated1 Rich Content and Transactional Experiences Total Unique Reach Visitors (in M) Proven C2C Marketplace 1. Google 29 M 94% 3. Facebook 25 M 82% 5. eBay
Slide 10: We Are Starting from a Position of Strength
We Are Starting from a Position of Strength Canada’s Most Comprehensive Provider of Digital Marketing Solutions A Leader in Dedicated Chief Marketing Officer for 243,000 local businesses Digital Marketing Largest national network of sales, customer service and digital fulfillment professionals A lea
Slide 11: Significant Deceleration in Net Customer Count Decline
Significant Deceleration in Net Customer Count Decline Annual Customer Acquisition1 Net Customer Count Decline1,2 (in thousands) (in thousands, unless otherwise noted) 40.2 38.6 30 34.6 26 30.8 23 27.2 20 23.7 24.8 19 22.1 17 20.2 18.4 14 16.5 11 7 4 3 Q1 Q23 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 3 Q3 Q4
Slide 12: Stabilization in Customer Count Driven by Growth in Digital Customers
Stabilization in Customer Count Driven by Growth in Digital Customers Customer Count Digital Only Customers (in thousands, unless otherwise noted) (in thousands, unless otherwise noted) 270 72.2 67.2 265 60.5 260 54.5 256 49.1 44.4 251 40.8 248 37 246 32.7 245 244 244 29.4 243 26.1 Q1 Q2 Q3 Q4 Q1 Q2
Slide 13: Delivering Sustainable Print and Digital Revenue Performance
Delivering Sustainable Print and Digital Revenue Performance… Print Revenue Performance Digital Revenue Performance (in millions, unless otherwise noted) (in millions, unless otherwise noted) YoY Change YoY Change (21%) (19%) (23%) (23%) (24%) +12% +11% +17% +22% +8% 142 139 83 129 132 128 79 72 68
Slide 14: Revenue and Adjusted EBITDA
Revenue and Adjusted EBITDA Consolidated Revenue Performance Adjusted EBITDA Performance (in millions, unless otherwise noted) (in millions, unless otherwise noted) YoY Change YoY Change (4%) (3%) (1%) +3% (4%) (15%) (1%) (13%) (4%) (11%) 211 209 210 204 201 64 64 62 59 57 Pro forma1 (5%) (5%) (7%)
Slide 15: Maintaining Strong Profitability During Our Digital Transformation
Maintaining Strong Profitability During Our Digital Transformation Relative Size of Gross Margins of our Local Digital Solutions Print Cost structure is High principally variable, with profitability Margin tracked on a Online & Mobile Priority Placement book-by-book basis Websites Over 90% of traffi
Slide 16: Delivering Strong Free Cash Flow to Reduce Outstanding Debt
Delivering Strong Free Cash Flow to Reduce Outstanding Debt (in millions, unless otherwise noted) Sept 30, 2016 Dec. 31, 2015 Dec. 31, 2012 Senior Secured Notes1 371 407 800 Exchangeable Debentures2 92 90 87 Obligations Under Finance Leases 0 1 2 Total Debt 462 498 888 Cash and Cash Equivalents 72 6
Slide 17: Strengthening Our Financial Profile in 2016
Strengthening Our Financial Profile in 2016 Stabilization of the Customer Count YoY Organic Digital Revenue Growth Between 5% and 8% $97 Million in Principal Debt Repayment Expected 17