Slide 1: Eniro Q1 report
Eniro Q1 report Johan Lindgren, CEO Cecilia Lannebo, Head of IR April 24th, 2014
Slide 2: Johan Lindgren, CEO
1. Johan Lindgren CEO
Slide 3: Eniro the local search company
Eniro the local search company “In the digital value chain Eniro is an aggregator: a search company that filters and organizes local information“ 3
Slide 4: A digital media company
A digital media company Multiscreen growth segments Mature segments Desktop search Print Voice Mobile search Hyper local books in Sweden, Directory assistance service Listing, ranking and visibility Norway and Denmark via phone and sms in in local search services on Sweden, Norway and Finland
Slide 5: CEO summary
CEO summary Continued strong mobile growth – “Mobile first” EBITDA was SEK 227 M (170 M) Revenues increased 94% organically and 44% Incl. SEK 62 M in capital gain and SEK 4 M in of total searches on products done on mobile restructuring costs Incl. cost of synthetic share program SEK 9 M Multi
Slide 6: Financial development Q1 2014
Financial development Q1 2014 Incl. capital gain of SEK 62 M -11% 1 000 Incl. negative effect of synthetic 886 share SEK 9 M 792 800 600 -8% 400 +34% 227 200 170 169 183 -20% n.m. 89 71 88 0 -53 -200 Revenue EBITDA Adj. EBITDA Net Income Cash Flow Net debt 2 539 -7% 2 374 6
Slide 7: Pros and cons in the Q1 2014 report
Pros and cons in the Q1 2014 report Pros Cons Adj. EBITDA supports full year guidance Slightly weaker than expected Multiscreen Continued strong growth for Mobile Negative currency on revenues and net profit Refining of operation by cash-generating Working capital and cash-flow divesture
Slide 8: Activities in Q1
Activities in Q1 Divesture of InTouch and Scandinavia Online Launch of new functionality, customer products Revenue contribution 2013 some 75 MSEK and improved user experience EBITDA contribution 2013 some 15 MSEK Product offerings Total consideration SEK 85 M Same look and feel on all sit
Slide 9: New launch end of March – product offerings
New launch end of March – product offerings Elgiganten 9
Slide 10: Eniro Navigation
10 Eniro Navigation eniro 2
Slide 11: Focus on growth
Focus on growth Growth is expected to be driven by: Continued investments in market position Organic development and focus on Eniro Global Additional focus on mobile and multiscreen usage Increased customer base Growth in ARPA (average revenue per advertiser) Focus on continued strengthe
Slide 12: Mobile first: rapid growth in revenues and traffic
Mobile first: rapid growth in revenues and traffic Mobile revenues increased 92% to SEK 98 M Share of product and company search via mobile devices compared with last year % Mobile search 12% of total revenues in Q1 50 44% of all product- and company searches 45 are done on mobile devices 40 35 Enir
Slide 13: Traffic development
Traffic development Approx. 8 M unique users (browsers) per week 9 000 000 50% visiting Eniro properties of which: 45% 8 000 000 • 1,8 M unique users (browsers) per week are visiting from mobile devices 7 000 000 40% Number of unique browsers per week in Q1 2014 6 000 000 35% in line with Q1 2013 30
Slide 14: Revenue bridge Q1 2014
Revenue bridge Q1 2014 Reported Organic -11% -7% 886 11 24 18 851 19 14 49 47 44 792 Reported Currency Moved Organic Desktop Mobile Campaign Print Other Voice Reported revenues effects publications baseline Q1 - 2014 Q1 - 2013 -11% 94% 34% -24% -55% -24% Currency and moved publications gave a total
Slide 15: Cost savings Q1 2014
Cost savings Q1 2014 -83 718 5 720 713 5 Restructuring cost 700 24 9 3’rd party cost 680 2 Cost ex 3rd party 660 640 76 630 620 718 26 689 600 580 604 20 0 Q1 2013 Currency effect Organic baseline Net Savings Q1 Reported Q1 2013 cost Q1 2014 Total savings in first quarter of SEK 76 M Savings include
Slide 16: Development net debt/EBITDA
Development net debt/EBITDA 10 000 5 4,5 8 000 4 3,5 6 000 3 2,5 4 000 2 1,5 2 000 1 0,5 0 0 2006 2007 2008 2009 2010 2011 2012 2013 Q1 2014 EBITDA Net Debt Net debt/EBITDA 16
Slide 17: Change in net debt
Change in net debt Analysis of interest bearing net debt Jan-Mar Jan-Mar Apr-Mar Jan-Dec SEK M 2014 2013 2013/14 2013 Opening balance -2 340 -2 704 -2 539 -2 704 Operating cash flow -53 88 188 329 Acquisitions and divestments 49 41 41 33 Share issue - - 0 0 Translation difference and other changes -
Slide 18: Financial commentary
Financial commentary Amortizations Print conversion Re-classification of the Norwegian Conversion of Gula Sidorna in Sweden into trademarks Gule Sider and Ditt Distrikt from digital performing according to expectations indefinite to a limited frame of 5-10 years annual amortization of some SEK 9
Slide 19: Outlook 2014
Outlook 2014 Revenues Multiscreen media to grow Print and Voice to decline Target to increase mobile revenues to SEK 900 M 2015 EBITDA and balance sheet Adjusted EBITDA 2014 in line with 2013 Cost savings 2014 of at least SEK 200 M Long-term net debt/EBITDA not to exceed 2x Cash flow and investments
Slide 20: Appendix
Eniro Q1 report Appendix
Slide 21: Eniro share price and shareholder development
Eniro share price and shareholder development 70 60 50 40 Share price development since March 31, 2013 = +375% 30 Share price development year-to-date 2014 = +10% 20 Share price development March 2014 = -11% 10 0 Preference Changes since March 31, Dec 30, 10 largest holders (grouped), March 31th 201
Slide 22: Refinancing – terms & conditions
Refinancing – terms & 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 Scheduled amortizations for 2014-2016 approx. SEK 375 M annually Interest rate
Slide 23: Revenues
Revenues Revenue by category Jan-Mar Jan-Mar Apr-Mar Jan-Dec Revenue by country SEK M 2014 2013 % 2013/14 2013 Jan-Mar Jan-Mar Apr-Mar Jan-Dec Desktop search 416 473 -12 1 777 1 834 SEK M 2014 2013 % 2013/14 2013 Mobile search 98 51 92 334 287 Sweden 355 410 -13 1 664 1 719 Campaign products 75 57 3
Slide 24: EBITDA overview
EBITDA overview EBITDA by revenue area Jan-Mar Jan-Mar Apr-Mar Jan-Dec SEK M 2014 2013 % 2013/14 2013 Local search 200 126 59 744 670 Voice 49 57 -14 243 251 Other -22 -13 -69 -81 -72 Total EBITDA 227 170 34 906 849 Items affecting comparability Restructuring costs 4 13 97 106 Other items affecting
Slide 25: Balance sheet overview
Balance sheet overview Equity and liabilities Consolidated balance sheet Equity Share capital 309 2 529 309 Mar. 31 Mar. 31 Dec. 31 Additional paid in capital 5 125 5 125 5 125 SEK M 2014 2013 2013 Reserves -286 -292 -360 Assets Retained earnings -1 348 -3 866 -1 421 Total equity share holders of th
Slide 26: eniro
eniro 2 Discover local. Search local.