Yellow Pages Ltd. · TSX:Y
Yellow Pages — Investor Presentation (June 2015)
29 slides from Yellow Pages's investor presentation, June 2015
Slide 1: Yellow Pages Limited Investor Presentation – June 2015
Yellow Pages Limited Investor Presentation – June 2015 Available in English Only
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: Yellow Pages at a Glance
Yellow Pages at a Glance Our Mission: To Champion Canada’s Local Neighbourhood Economies • 55% of revenues are sourced from the sale of digital solutions • Servicing 251,000 local businesses through Canada’s most comprehensive suite of digital marketing solutions • One of Canada’s largest sales team
Slide 4: Strong Traction of Digital Revenue Growth
Strong Traction of Digital Revenue Growth $116.9 $113.6 $112.9 $104.0 $108.4 +9% +12% +9% Year-over-year +10% +5% Consolidated Digital Revenues (in C$ millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 % Digital-Only 10% 11% 13% 15% 16% Customers Digital Revenues as a 47% 49% 52% 54% 55% % of Total R
Slide 5: Accelerating Customer Acquisition to Grow Digital Revenues
Accelerating Customer Acquisition to Grow Digital Revenues Accelerating Customer Acquisition1 Closing the Gap in Customer Count Decline1 (in thousands) (in thousands, unless otherwise noted) 23.7 36 35 22.1 33 33 20.2 30 18.4 26 16.4 16.5 15.3 14.8 15.2 23 20 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q
Slide 6: Improving Trends in Revenue Performance Relative to 2014
Improving Trends in Revenue Performance Relative to 2014 $223.2 $220.6 $218.4 $215.3 $205.9 Total Revenues (in C$ millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Year-over-Year -12% -9% -8% -8% -8% Decline Rate1 Supported by customer acquisition, revenue decline rates will continue to improve rela
Slide 7: Return to Growth Plan – Positioning Yellow Pages For Future Growth
Return to Growth Plan – Positioning Yellow Pages For Future Growth Growth in Growth in Growth in the Customer Profitability Revenues Count (EBITDA) 2017 2018 7
Slide 8: Core Pillars Underlying the Return to Growth Plan (“RTG”)
Core Pillars Underlying the Return to Growth Plan (“RTG”) Grow traffic on our network of media properties by providing Canadians with richer, MEDIA more diversified content and improved verticalized search experiences. Enrich, diversify and verticalize our suite of digital solutions to PRODUCTS best
Slide 9: Key Achievements in RTG’s First Year of Implementation
Key Achievements in RTG’s First Year of Implementation Growing Traffic on our Digital Properties • Total digital visits reached 104 million in Q1 2015, up 10.5% year-over-year. • Ongoing verticalization of the Company’s media properties, with YP Dine and a redesigned YP Shopwise launched for the res
Slide 10: Growing Adoption of YP’s Digital Media Properties
Growing Adoption of YP’s Digital Media Properties Total Digital Visits in Continued Growth (in millions, unless otherwise noted) 117.4 110.2 +14% 102.4 +10% 104.0 94.1 +2% +10% Flat year-over-year Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Strong Reach Among Digital Canadians Rich Content & Experiences
Slide 11: Verticalizing the User Experience to Reach New Audiences and Merchants
Verticalizing the User Experience to Reach New Audiences and Merchants YP App People Search Discover everything the neighbourhood Business & has to offer Canada411 The person finder, Canada-wide YP Shopwise Your everyday shopping app to help you save time and money Retail RedFlagDeals Hunt for the b
Slide 12: Tuck-In M&A to Accelerate Verticalization Strategy – Restaurants
Tuck-In M&A to Accelerate Verticalization Strategy – Restaurants • M&A activity started in December 2014 with two acquisitions geared at accelerating Yellow Pages’ presence, growth and monetization within the restaurant vertical • Provider of digital reservation • Owner and operator of digital resta
Slide 13: Tuck-In M&A to Accelerate Verticalization Strategy – Real Estate
Tuck-In M&A to Accelerate Verticalization Strategy – Real Estate Leading Real Estate’s Digital Disruption • Founded in 1997 • Offers for-sale-by-owner operations in Quebec and Saskatchewan, and flat-fee brokerage operations in Ontario, Alberta and Manitoba • Addresses a growing demand for comprehens
Slide 14: Richer Content to Attract and Retain Audiences – Merchant Profiles
Richer Content to Attract and Retain Audiences – Merchant Profiles Quick Access to Relevant Content Rich Multimedia Key Partnerships with Other Digital Players Greater Number of Ratings & Reviews 14 MEDIA
Slide 15: Richer Content to Attract and Retain Audiences – Editorials
Richer Content to Attract and Retain Audiences – Editorials Local Stories SmartTips Playlists • Discover the merchants in and • Discover tips and tricks to best • Discover what’s top and around your neighbourhood meet your everyday shopping trending in your neighbourhood needs Over 8,000 pieces of e
Slide 16: Investment in Digital Media will Protect Long-Term Profitability
Investment in Digital Media will Protect Long-Term Profitability Relative Size of Gross Margins of our Digital Solutions Print High Margin Online & Mobile Priority Placement Websites Mid- Margin SEO Leverage insourced traffic to deliver Low SEM high-margin performance-based Margin solutions Placemen
Slide 17: Strongly Positioned to Succeed in the Canadian Marketing Landscape
Strongly Positioned to Succeed in the Canadian Marketing Landscape * Size of bubble denotes approximate advertising revenue in Canada Local Digital Search Engine People Marketing Breadth of Product Boutiques Offerings Self-Serve Website Local Platforms Newspapers Self-Serve Full Serve Service Level
Slide 18: Evolving Our Portfolio to Better Address SME Needs at All Price Points
Evolving Our Portfolio to Better Address SME Needs at All Price Points Free $10-50 $50-100 $100-250 $250-1000 $1000+ Presence Line-Up (Content Syndication) Website Fulfillment Social Media Campaigns Build Your Digital Presence SEO Solutions Digital Banner Ads Digital Placement on YP’s Network of Pro
Slide 19: Introducing the Presence Line-Up
Introducing the Presence Line-Up Launched on April 20th, the Presence line-up provides YP with rich, relevant and up-to-date merchant content, while allowing merchants to optimize their visibility across the digital marketplace 19 PRODUCTS
Slide 20: Various Initiatives To Deliver Ramp-Up in Customer Acquisition
Various Initiatives To Deliver Ramp-Up in Customer Acquisition… New Product Offerings + Tools/Functionalities on the 360o Business Center + Branding Campaigns + Improved Self-Prospecting Growth in Lead Sources Enhanced Lead Management and Conversion New Customer Relationship Management Platform to O
Slide 21: …And Enhance All Aspects of the Customer Experience
…And Enhance All Aspects of the Customer Experience Fulfillment Customer Business Automation Service Center Improve quality and timely Optimize the routing and Build direct relationships with delivery of products by creating resolution of customer inquiries customers and prospects, while efficiencie
Slide 22: Providing More Power to the Merchant via the YP 360° Business Center
Providing More Power to the Merchant via the YP 360° Business Center Sign-in to Manage Your Profile, Consult YP Analytics & Buy Solutions Online Claim Your Listing for Free Discover Our Solutions Chat with an Advertising Expert 22 SALES & CUSTOMER EXPERIENCE
Slide 23: Simplified Architecture to Enhance Recognition of the YP Brand
Simplified Architecture to Enhance Recognition of the YP Brand New Holding Name Leveraging the Power of the YP Brand Across Our Media Properties 23 BRAND
Slide 24: Local Market Attacks to Promote Usage of the YP App
Local Market Attacks to Promote Usage of the YP App 24 BRAND
Slide 25: Promoting the Growth of Local Economies
Promoting the Growth of Local Economies November 28th, 2014 • Held across five Canadian cities in over 200 neighbourhoods during one of the busiest shopping weekends of the year • Participation from over 8,000 local businesses, having uploaded 6,000 deals exclusive to YP’s properties on event day •
Slide 26: Financial Review
Financial Review (Figures in millions of C$, unless otherwise noted) Revenue Performance Consolidated Print Digital 223 221 218 215 119 117 206 112 108 114 113 105 104 98 93 YoY Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 YoY Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 YoY Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1
Slide 27: Investing in Operational Efficiencies to Promote Cost Savings
Investing in Operational Efficiencies to Promote Cost Savings Expected Annualized Cost Savings of $20 to $25 million by 2016 Targeted Print Insourcing Print New Print Upgrading IT Operational Directory Distribution Publishing Platform Datacenters Excellence Distribution Eliminating distribution An i
Slide 28: Transferring Additional Value to Shareholders via Debt Reduction
Transferring Additional Value to Shareholders via Debt Reduction (in millions of C$) March 31, 2015 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Senior Secured Notes 1 $507 $507 $647 $800 Exchangeable Debentures 2 $89 $89 $88 $87 Obligations Under Finance Leases $1 $1 $1 $2 Total Gross Debt $597 $597 $
Slide 29: Financial Outlook
Financial Outlook Digital revenue growth anticipated to be maintained in the high single digits for 2015 and thereafter1. 2015 EBITDA to remain under pressure relative to 2014, as additional investments are made to accelerate the Company’s digital transformation. EBITDA margins to be maintaine