Tx Group Ag · SIX:TXGN
Tx — Investor Day (2023)
48 slides from Tx's investor day presentation, 2023
Slide 1: Slide 1
Slide 2: Strategy Event 2023
no Strategy Event 2023
Slide 3: Agenda Strategy Event 2023
Agenda Strategy Event 2023 14:30 Development TX Group and market trends Pietro Supino 14:45 Meaning of media for democracy Ursula Nötzli 14:55 Margin outlook 2026 Sandro Macciacchini Break 15:20 20 Minuten Bernhard Brechbühl 15:30 Tamedia Jessica Peppel-Schulz 15:40 Goldbach Michi Frank 15:50 Goldba
Slide 4: Development TX Group and market trends
Development TX Group and market trends Pietro Supino Chairman & Publisher 4 TX Group AG
Slide 5: From a daily newspaper to a media and technology group
...to a media and technology group From a daily newspaper… 5 TX Group AG
Slide 6: The strengths of our business leaders
The strengths of our business leaders Bernhard Brechbühl Jessica Peppel-Schulz Michi Frank Christoph Marty CEO (since 1. August 2022) CEO (since 1. October 2023) CEO (since 1. January 2001) CEO (since 1. June 2023) ● Media maker with ● Driving digital and ● Media strategist, long ● Shaping different
Slide 7: Meaning of media for democracy
Meaning of media for democracy Ursula Nötzli Chief Communications & Sustainability Officer 7 TX Group AG
Slide 8: We contribute to a free society.
We contribute to a free society. By creating transparency. By bringing people together and offering them information, entertainment and help in their everyday lives. So that they understand the world better. So that they can form their own opinions. So that they can make free decisions - from politic
Slide 9: Our contribution with impact: we inform Switzerland with our journalistic products
Our contribution with impact We inform Switzerland with our journalistic products Tamedia and 20 Minuten: Distribution of Readership Our journalism reaches 64% of persons living in Switzerland, aged > 14 years Quality is our 1 responsibility Credibility is 2 our mediaʼs capital 9 TX Group AG
Slide 10: Margin Outlook 2026
Margin Outlook 2026 Sandro Macciacchini Chief Operating Officer 10 TX Group AG
Slide 11: Recap Investor Day 2022: outlook to develop a guidance
Recap Investor Day 2022: Last year, we provided an outlook to develop a guidance. 11 TX Group AG
Slide 12: EBIT adj. margin targets for 2026 by business unit
EBIT adj.* margin targets for the year 2026 have been defined for 20 Minuten, Tamedia, Goldbach and Goldbach NEO Segment/ Business Unit Target 2026 Actuals 2022 EBIT adj. Margin EBIT adj. Margin 20 Minuten 14-16 % 13.3 % Tamedia 8-10 % 1.4 % Goldbach (without OOH) 18-22 % 17.7 % Goldbach Neo (OOH) 1
Slide 13: Achievement of targeted EBIT adj. margins as a prerequisite for a sustainable future
Achievement of targeted EBIT adj.* margins as a prerequisite for a sustainable future We want to succeed in the We want to be prepared for We want to invest in the market long term - this future economic and future of our companies. requires competitive margins. industry-specific crises. 13 TX Group
Slide 14: 20 Minuten target margin comparison
20 Minuten target margin comparison EBITDA Margin, Operating Index Historical Performance (green line) before Corona above Peer Group, since 2020 on the same level Peer Group (grey lines) shows stable profitability over the last 8 years Targeted performance (blue lines) in alignment with Peer Group
Slide 15: Tamedia target margin comparison
Tamedia target margin comparison EBITDA Margin, Operating Index Historical Performance (green line) within the Peer Group with a downward trend Peer Group (grey lines) shows also decline in profitability, although less significant and with a high spread since 2020 Upper bandwidth of the targeted per
Slide 16: Goldbach (without OOH) target margin comparison
Goldbach (without OOH) target margin comparison EBITDA Margin, Operating Index Historical Performance (green line) above Peer Group (grey lines) Recent trend towards alignment with Peer Group Performance outlook (blue lines) requires a recovery of the profitability For 2019-2021 EBITDA margin and fo
Slide 17: Goldbach Neo (OOH) target margin comparison
Goldbach Neo (OOH) target margin comparison EBIT Margin, Operating Index Historical Performance (green line) shows the investments in Neo OOH Peer Group (grey lines) shows stable profitability over the last 8 years (with higher spread since 2020) Targeted performance (blue lines) in alignment with P
Slide 18: 20 Minuten
20 Minuten Bernhard Brechbühl CEO 18 TX Group AG
Slide 19: 20 Minuten Group runs ad-funded media brands in Switzerland, Austria and Luxembourg
20 Minuten Group runs ad-funded media brands in Switzerland, Austria and Luxembourg fully owned news brands Online traffic (#1 news brand) Switzerland Joint Ventures Switzerland Austria Luxemburg Print (#1 daily newspaper) Print readers per day: 1.3m** 19 TX Group AG Sources: *: Mediapulse Online Con
Slide 20: Strengths of 20 Minuten
Strengths of 20 Minuten / 20 minutes ● Unique journalistic offering for news, inspiration and entertainment, free of ideology, reliable and responsible journalism ● Leading and most visible news brand in Switzerland, very high mobile usage ○ More than 80% of our traffic comes from mobile devices ○ App
Slide 21: Top challenges
Top 3 challenges Net advertising spend in Switzerland 1 (in CHF mn) Structural shift: Print → Digital → Social Media 2 Dominance of big tech in the Swiss advertising market (appr. 3/4 of digital ad spend go to Google, Meta) 3 Online offerings (news websites and apps) from public broadcaster SRG 21 TX
Slide 22: Financial development over time
Financial development over time Net Revenues (in CHF mn) EBIT adj. in CHF mn (incl. margin) Full time equivalent 2019 2020 2021 2022 22 TX Group AG
Slide 23: Goals 2026 and road to 2026 - strategic initiatives
Goals 2026 Road to 2026 - strategic initiatives ● Innovate digital storytelling (video, visual, Margin target: 14-16% interactive) and digital products ● Increase traffic in all markets and ● Introduce new distribution points maintain #1 position in ● Increase community engagement Switzerland ● Launc
Slide 24: Tamedia
Tamedia Jessica Peppel-Schulz CEO 24 TX Group AG
Slide 25: Tamedia has the most diverse paid media portfolio in Switzerland
Tamedia has the most diverse paid media portfolio in Switzerland and operates the three largest newspaper printing centers. 3 main locations + local editorial offices ** More than 1500 employees from > 60 countries 75% work in DCH, 25% in WCH 25 TX Group AG
Slide 26: Holistic transformation program started
Holistic transformation program started A comprehensive transformation program has been launched to strengthen the profitability of our existing business and to develop future business areas. Growth 26 TX Group AG
Slide 27: Committed to quality journalism
Committed to quality journalism 1 2 3 Tamedia has the expertise Our insightful editorial This continues to be the and the foundation to teams create a unique pool basis of all our business deliver editorial content in of latest news, sticky service models. the highest quality, over a topics and high
Slide 28: Strong brands, diverse target groups
Strong brands Diverse target groups 1 2 3 We have strong brands that With their customer-centric We think "digital first" but at achieve their full potential products, our brands cater the same time "cross through consistent brand to the needs of different channel". That is, we are architecture. targ
Slide 29: Diversified revenue streams, cost aware
Diversified revenue streams Cost aware Subscription Revenue Advertising Revenue New Business Models ● The subscription business with our established digital and print news offerings is currently our most important revenue stream and will continue to be an important pillar in the foreseeable future. ●
Slide 30: Make the organization future-ready
Make the organization future-ready Operating Model We leverage the operating model to increase Performance Efficiency profitability of the existing Growth business and and to rapidly Incubation scale new revenues streams. Skills Process Culture 30 TX Group AG
Slide 31: Diversified revenue streams, cost aware
Diversified revenue streams Cost aware ● Existing Business: Moving forward in Growth New brand architecture improving its performance ("top line") and increase its efficiency ("bottom line"). ● New Business: Identification of innovations with potential to scale has taken place, including the enableme
Slide 32: EBIT margin 2026: Holistic Transformation Program
Holistic Transformation Program ● Leveraging our strong brands with customer centric products (digital-first and cross-channel) ● Diversification of revenue streams: subscription, advertising and new business models EBIT margin 2026: ● Cost-awareness in the existing business and investment into futu
Slide 33: Goldbach
Goldbach Michi Frank CEO 33 TX Group AG
Slide 34: Leading Swiss advertising marketer
Leading Swiss advertising marketer TV / Video Premium Publishing Digital Revenue* Employees* 191.5 CHF mn 674 #1 in radio EBIT adj.* Reach #1 in TV / Video #1 in print (D)OOH #3 in online 21.2 CHF mn ~ 85 % EBIT adj. Margin* 17.7 % #2 in (D)OOH TX Group AG Sources: *Annual Report 2022 (incl. Neo Adv
Slide 35: Media use continues to shift from traditional to digital media
Media use continues to shift from traditional to digital media Development of media use (RUS in %*) classic digital Media type ● Usage of traditional genres declining ● Internet: Established as the leading medium ● Use of linear TV is being supplemented by streaming (paid & free) ● The growing and f
Slide 36: Strategy builds on customer-centric and technology-driven sustainable growth
Strategy builds on customer-centric and technology-driven sustainable growth Digital media Fundamental Classic media and OOH Heightened data 1 change in media 2 under pressure 3 experience 4 literacy Built up market consumption trust over 30 years growth Purpose-oriented value creation strategy ● To
Slide 37: Goldbach has aggregated the entire Swiss private TV inventory
Goldbach has aggregated the entire Swiss private TV inventory Reach of GOLDBACHʼs TV inventory (in % of population, monthly) xxx Groups of 3+ people 37 TX Group AG
Slide 38: TV advertising market slightly growing, supported by Replay Ads
TV advertising market slightly growing, supported by Replay Ads TV advertising net revenues in Switzerland incl. sponsoring (CHF mn)1,2 38 TX Group AG Sources: 1) 2019-2022A: Stiftung Werbestatistik Schweiz, Nettowerte; 2023-2026: GOLDBACH Media estimates 2) TSV-WF: Time Shifted View - Werbefenster
Slide 39: Business initiative to exploit the SME market opportunity
Business initiative to exploit the SME market opportunity Total market, gross by GOLDBACH net revenues by segment1 (2022A, %) segment (2022A, %) Small-cap clients Digitalization and automation Mid-cap clients in media booking as key enablers for SME expansion have Large agencies, been premium client
Slide 40: Margin target: 18-22%
Margin target: 18 - 22% High cost awareness ● Ongoing adjustment of headcount to top line development TV ● Reducing operational expenses (e.g. consolidation of locations) ● Structural adjustments such as simplification of organizational structure Print ● Modify contracts to reflect new reality Digit
Slide 41: Goldbach NEO
Goldbach NEO Christoph Marty CEO 41 TX Group AG
Slide 42: Overview of Goldbach NEO and its business
Overview of Goldbach NEO and its business Employees Advertising spaces 260 25ʼ000 42 TX Group AG
Slide 43: OOH market with structural growth
OOH market with structural growth OOH market is growing faster than the other categories and is continuously expanding its market share*…… …. with an expected growth CAGR of 2.6% between 2022 - 2026** +2.6 % 43 TX Group AG Sources: *Media Focus; **PWC/MAGNA
Slide 44: Growing market share of Goldbach NEO in a consolidated market
Growing market share of Goldbach NEO in a consolidated market Growing market share Digital OOH growing faster than traditional with organic growth (in %) The growing market share of the digital OOH business is mainly based on incremental growth and not on the cannibalisation of the traditional busin
Slide 45: Scalable business with high operating leverage
Scalable business with high operating leverage Expertise and USPs Customer Portfolio Switzerland 45 TX Group AG
Slide 46: Strategy: EBIT margin 2026 of 12-14%
Strategy ● Structural market growth in combination with market share gains EBIT margin 2026: ● Scalable business with high operating leverage 12 - 14 % ● Synergies from integration Clear Channel Switzerland and Neo Advertising into Goldbach NEO 46 TX Group AG
Slide 47: TX Group AG
47 TX Group AG
Slide 48: Stream available on request
Stream available on request: investor.relations@tx.group LinkedIn Instagram tx.group