Yellow Pages Ltd. · TSX:Y
Yellow Pages — Q4 2015 Earnings Presentation
17 slides from Yellow Pages's earnings presentation, February 2016
Slide 1: Investor Presentation February 2016
Investor Presentation February 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 local 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: 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 neighbourhood has to offer time and money Canada411 & 411.ca RedFlagDeals Network of Canada’s most frequented and Canada’s lea
Slide 7: We Are Starting from a Position of Strength
We Are Starting from a Position of Strength A Rich, Diversified One of Canada’s Most Adopted Digital Properties for Local Discovery Digital Media Over 464 million visits executed across our network of digital properties annually Network 14th most-visited digital network in Canada, garnering a 41% re
Slide 8: Our Key Pillars of Digital Transformation
Our Key Pillars of Digital Transformation Strengthen the digital relevancy and perception of our media and Brand marketing solutions through the deployment of national advertising campaigns Introduce richer content, improved functionalities and transactional experiences to promote the adoption and u
Slide 9: Our Path to Growth is Clear
Our Path to Growth is Clear Debt Free Capital Structure Growth in Adjusted EBITDA Growth in Revenues Growth in the Customer Count 2017 2018 9
Slide 10: 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) 30.8 30 27.2 26 24.8 23.7 23 22.1 20.2 20 18.4 19 16.5 17 14 11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 TTM 2015 TTM 20
Slide 11: Product Offerings
Uniquely Positioned to Capture Further Growth in the Canadian Digital Marketing Landscape * Size of bubble denotes approximate advertising revenue in Canada Market share of over 20% of the Canadian SME market Search Engine People Local Digital Marketing Product Offerings Boutiques Breadth of Self-Se
Slide 12: Promoting Usage of Our Digital Media Properties
Promoting Usage of Our Digital Media Properties Differentiating Our Properties Via Total Digital Visits1 Remain Strong Rich Content and Transactional Experiences (in millions, unless otherwise noted) YoY Change +14% +12% +14% +13% +1% 124.1 Proven C2C 117.4 116.4 118.2 Marketplace 105.3 Integrated B
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 (22%)1 (22%) (21%) (21%) (19%) +9% +9% +7% +12% +11% 98 128 129 93 88 117 116 83 113 7
Slide 14: …and Reducing Revenue and Adjusted EBITDA Declines
…and Reducing Revenue and Adjusted EBITDA Declines Consolidated Revenue Performance Adjusted EBITDA Performance (in millions, unless otherwise noted) (in millions, unless otherwise noted) YoY Change (8%)1 (8%) (7%) (4%) (3%) YoY Change (29%) (25%) (24%) (15%) (1%) 215 211 209 206 205 71 65 64 64 62
Slide 15: Profitability Supported by the Strength of Our Media Network
Profitability Supported by the Strength of Our Media Network Relative Size of Gross Margins of our Digital Solutions Print High Margin Online & Mobile Priority Placement Websites Mid- Over 90% of traffic on Margin Search Engine Optimization Yellow Pages’ digital properties is direct or organic Prese
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) Dec. 31, 2015 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Senior Secured Notes1 407 507 647 800 Exchangeable Debentures2 90 89 88 87 Obligations Under Finance Leases 1 1 1 2 Total Debt 498 597 735 888 Cas
Slide 17: Strengthening Our Financial Profile in 2016
Strengthening Our Financial Profile in 2016 Stabilization of the Customer Count YoY Organic Digital Revenue Growth in the High Single Digits Adjusted EBITDA Margins of 30% Improvements to Revenue and Adjusted EBITDA Declines $100 Million in Principal Debt Repayment 17