Solocal Group · EURONEXT:LOCAL

Solocal — Q2 2015 Earnings Presentation

40 slides from Solocal's earnings presentation, Jul 22, 2015

  1. Slide 1: 2nd Quarter 2015 Results

    2nd QUARTER 2015 RESULTS 22 JULY 2015

  2. Slide 2: Disclaimer

    DISCLAIMER This document contains forward-looking statements. Although Solocal Group believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from the result

  3. Slide 3: Business Update

    BUSINESS UPDATE JEAN-PIERRE REMY CHIEF EXECUTIVE OFFICER

  4. Slide 4: Digital 2015: Progress to Date

    DIGITAL 2015: PROGRESS TO DATE 2015 Objectives Q2 Highlights •Launch of new PagesJaunes, Apple partnership Geolocation of audiences (summer 2015) •Geolocation of audiences available Media & Offering simplification •Websites and local retargeting growth audiences Effectiveness (50% teams < objectives

  5. Slide 5: Finalisation of Reset: Digital 2015 Benefits

    FINALISATION OF RESET: DIGITAL 2015 BENEFITS Impact H1 2015 Internet audience (visits) +12% ● Traffic towards professionals +19% Internet revenues +4% ● Search & Display ARPA +9% ● Number of clients -5% Digital company ● Sales: ‒ Cost + 5 pts in % of revenues ‒ New contract More flexibility in drivi

  6. Slide 6: Contingency Plan and Profitability

    CONTINGENCY PLAN AND PROFITABILITY Implementation of operational contingency plan Non staff cost reduction: G&A, purchasing optimization Q2 2015 H1 2015 Staff cost reduction: EBITDA1  Global hiring freeze 80 (-7%) 134 (-20%) € millions  Voluntary redundancy plan EBITDA/ Revenues1 33% 30% In-progre

  7. Slide 7: Sustainable Double Digit Growth of Audiences

    SUSTAINABLE DOUBLE DIGIT GROWTH OF AUDIENCES Solocal audiences PagesJaunes visits towards professionals1 In millions of visits In millions of visits 503 553 +10% 273 316 +16% 34% 37% +21% 102 +54% 66 214 +3% 206 +4% Q2 2014 Q2 2015 Q2 2014 Q2 2015 2 Fixed Mobile Direct + SEO Syndication 1Internal so

  8. Slide 8: Internet Growth of +5% in Q2

    INTERNET GROWTH OF +5% IN Q2 DRIVEN BY THE VERY STRONG PERFORMANCE OF DIGITAL MARKETING In millions of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Internet revenues 161 169 +5% 315 329 +4% Search & Display revenues 126 127 +1% 247 255 +3%  # visits (in millions) 503 553 +10% 989 1107 +12% 

  9. Slide 9: Digital Marketing Growth +9% in H1

    DIGITAL MARKETING GROWTH +9% IN H1 1 Penetration rate : 22% H1 Highlights  Creation and listing of  Websites enriched content enriched content: and new offers − Web content/marketing: websites / store locator, Search  “Web2Store” new products videos, Facebook pages, etc. & (Leadformance Bridge) −

  10. Slide 10: Verticals: Q2 Internet Revenues Highlights

    VERTICALS: Q2 INTERNET REVENUES HIGHLIGHTS Q2 2015 Internet revenues €169 million (+5% vs. Q2 2014) of which €164 million in France (+5% vs. Q2 2014) €49 million €34 million €19 million €32 million €30 million +6% +5% +15% +1% +2% ● Strong ARPA growth ● Still low penetration ● Strong growth in ● Rec

  11. Slide 11: Financial Performance

    FINANCIAL PERFORMANCE VIRGINIE CAYATTE CHIEF FINANCIAL OFFICER

  12. Slide 12: Q2 Financial Performance: Summary

    Q2 FINANCIAL PERFORMANCE: SUMMARY Internet growth EBITDA/revenues margin1 Debt reduction Q2 2015 Q2 2015  Net cash flow +4.8% 33% €22 million in Q2 2015 Objective of Objective of €42 million in H1 2015 +5% to 7% 29% to 30% over the year over the year H1 2015 H1 2015  €15 million in bank debt +4.4%

  13. Slide 13: Internet Revenues Growth of +5% in Q2

    INTERNET REVENUES GROWTH OF +5% IN Q2 DRIVEN BY THE VERY STRONG PERFORMANCE OF DIGITAL MARKETING In millions of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Internet revenues 161 169 +5% 315 329 +4% Search & Display revenues 126 127 +1% 247 255 +3%  # visits (in millions) 503 553 +10% 989 11

  14. Slide 14: Group Margin by Business

    GROUP MARGIN BY BUSINESS € millions € millions +4% +5% 169 315 329 INTERNET Revenues 161 Revenues 73% Q2 2014 Q2 2015 H1 2014 H1 2015 EBITDA/revenues1 31% 33% EBITDA/revenues1 34% 30% € millions € millions -22% -23% PRINT 121 & VOICE Revenues 94 72 Revenues 156 27% Q2 2014 Q2 2015 H1 2014 H1 2015 EB

  15. Slide 15: EBITDA Margin of 33% in Q2

    EBITDA MARGIN OF 33% IN Q2 85 8 (22) 80 7 (5) 5 1 € millions EBITDA1 Internet revenues Printed Directories Paper, Other external Sales Other personnel EBITDA 1 Q2 2015 & Voice Printing expenses reinforcement expenses Q2 2015 & Distribution 33% +1 pts -2 pts +0 pts +1 pts -0 pts +0 pts 33% EBITDA/rev

  16. Slide 16: Net Income of €22 Million in Q2 2015

    NET INCOME OF €22 MILLION IN Q2 2015, UP +4% VERSUS Q2 2014 Internet revenues: 169 (+5%) In million of euros Group revenues: 241 (-6%) Non staff costs Staff costs -53 (+13%) -108 (NA) EBITDA1: 80 (-7%) EBITDA/Revenues2: 33% Exceptional items Depreciation and amortisation -8 (NA) -11 (+32%) Corporate

  17. Slide 17: Net Cash Flow of €22 Million in Q2

    NET CASH FLOW OF €22 MILLION IN Q2, UP +125% 6 3 19 80 30 1 22 Recurring EBITDA Exceptional and non Change in working capital Capex Financial expenses Corporate income tax Net cash flow 1 Q2 2015 monetary items Q2 2015 1Recurring EBITDA excluding exceptional items Q2 2015 Results July 2015 17

  18. Slide 18: H1 2015 Performance

    H1 2015 PERFORMANCE In million of euros H1 2014 H1 2015 Change 1 Recurring EBITDA 167.2 133.8 -20.0% 2 36% 30% EBITDA / Revenues Exceptional items (10.1) (8.6) +14.9% Depreciation and amortisation (27.1) (23.2) +14.4% Net financial charge3 (58.0) (42.8) +26.2% Corporate income tax (31.7) (25.1) +20.

  19. Slide 19: Outlook

    OUTLOOK JEAN-PIERRE REMY CHIEF EXECUTIVE OFFICER

  20. Slide 20: Confirmed Outlook for 2015

    CONFIRMED OUTLOOK FOR 2015 Outlook 2015 Internet revenues growth rate +5% to +7% Revenues growth rate slight decrease2 Recurring EBITDA /revenues1 29% to 30% Net income stable2  In Q2 2015, the Group proceeded with partial purchase of its bank debt in an amount of €15 million.  In September 2015,

  21. Slide 21: Questions & Answers

    QUESTIONS & ANSWERS Sobcal GROUP .

  22. Slide 22: Financial Results Appendices

    FINANCIAL RESULTS APPENDICES

  23. Slide 23: Revenues: 2nd Quarter and 1st Half Year

    REVENUES: 2ND QUARTER AND 1ST HALF YEAR In million of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Internet revenues 161.3 169.0 +4.8% 315.3 329.2 +4.4% Search & Display 126.0 127.5 +1.2% 247.3 255.2 +3.2% Number of visits (in million) 503 553 +10% 989 1107 +12% ARPA (in €) 223 239 +7% 438 47

  24. Slide 24: Recurring EBITDA: 2nd Quarter and 1st Half Year

    RECURRING EBITDA1: 2ND QUARTER AND 1ST HALF YEAR In million of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change 1 Internet recurring EBITDA 49.3 55.9 13.4% 106.1 97.7 -7.9% EBITDA / Revenues 31% 33% 34% 30% Print & Voice recurring EBITDA1 36.1 23.7 -34.3% 61.1 36.1 -40.9% EBITDA / Revenues 39% 33

  25. Slide 25: From Recurring EBITDA to Net Income

    FROM RECURRING EBITDA1 TO NET INCOME: 2ND QUARTER AND 1ST HALF YEAR In million of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change 1 Recurring EBITDA 85.4 79.6 -6.8% 167.2 133.8 -20.0% Exceptional items (0.8) (8.1) na (10.1) (8.6) 14.9% EBITDA 84.7 71.5 -15.6% 157.1 125.2 -20.3% Depreciation and

  26. Slide 26: Income Statement: 2nd Quarter and 1st Half Year

    INCOME STATEMENT: 2ND QUARTER AND 1ST HALF YEAR In million of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Group revenues 255.1 241.0 -5.5% 470.8 450.2 -4.4% Net external expenses (61.4) (53.1) +13.5% (109.5) (103.7) +5.3% Personnel expenses (108.2) (108.2) +0.0% (194.1) (212.8) -9.6% 1 Recur

  27. Slide 27: Cash Flow Statement: 2nd Quarter and 1st Half Year

    CASH FLOW STATEMENT: 2ND QUARTER AND 1ST HALF YEAR In million of euros Q2 2014 Q2 2015 Change H1 2014 H1 2015 Change Recurring EBITDA1 85.4 79.6 -6.8% 167.2 133.8 -20.0% Non monetary items included in EBITDA and other (3.0) (5.9) -96.7% (4.6) (8.1) -76.1% Net change in working capital (4.3) (2.8) +3

  28. Slide 28: Balance Sheet at 30 June

    BALANCE SHEET AT 30 JUNE In million of euros 30 June 2014 31 Dec 2014 30 June 2015 ASSETS Total non-current assets 227.0 229.2 235.4 Net goodwill 82.2 82.5 82.5 Other net intangible fixed assets 97.6 107.3 120.3 Net tangible fixed assets 26.2 25.3 22.2 Other non-current assets of which deferred tax

  29. Slide 29: Net Debt at 30 June

    NET DEBT AT 30 JUNE In million of euros 30 June 2014 31 Dec 2014 30 June 2015 Cash and cash equivalents 54.6 46.2 75.1 Gross Cash position 54.6 46.4 75.2 Bank overdrafts (1.9) (2.8) (2.8) Net Cash position 52.7 43.6 72.3 Bank borrowings (813.9) (833.8) (811.1) Bond borrowings -Senior secured notes (

  30. Slide 30: Historical

    HISTORICAL Sobcal GROUP .

  31. Slide 31: Revenues: By Quarter

    REVENUES: BY QUARTER In million of euros Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Internet revenues 154.0 161.3 152.5 164.8 160.3 169.0 Search & Display 121.2 126.0 119.8 130.3 127.9 127.5 Number of visits (in million) 485 503 530 526 555 553 ARPA (in €) 215 223 217 239 237 239 Number of clie

  32. Slide 32: Recurring EBITDA: By Quarter

    RECURRING EBITDA1: BY QUARTER In million of euros Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 1 Internet recurring EBITDA 56.8 49.3 49.5 37.2 41.8 55.9 EBITDA / Revenues 37% 31% 32% 23% 26% 33% Print & Voice recurring EBITDA1 25.0 36.1 29.0 18.2 12.4 23.7 EBITDA / Revenues 40% 39% 38% 25% 25% 33

  33. Slide 33: Income Statement: By Quarter

    INCOME STATEMENT: BY QUARTER In million of euros Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015Q2 2015 Group revenues 215.7 255.1 229.3 236.1 209.2 241.0 Net external expenses (48.0) (61.4) (52.9) (68.2) (50.5) (53.1) Personnel expenses (85.8) (108.2) (97.9) (112.5) (104.5) (108.2) Recurring EBITDA1 81.8 8

  34. Slide 34: Cash Flow Statement: By Quarter

    CASH FLOW STATEMENT: BY QUARTER In million of euros Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 1 Recurring EBITDA 81.8 85.4 78.5 55.4 54.2 79.6 Non monetary items included in EBITDA and other (1.6) (3.0) (3.6) (5.3) (2.2) (5.9) Net change in working capital 20.2 (4.3) (49.4) 0.2 (2.8) (2.8) Acq

  35. Slide 35: Glossary

    GLOSSARY Sobcal GROUP .

  36. Slide 36: Glossary – Operational P&L (1/3)

    GLOSSARY – OPERATIONAL P&L (1/3) Internet revenues:  The sum of revenues from the Search & Display and Digital Marketing businesses Search & Display revenues:  The main products are the creation and marketing of content and advertising space, listings, targeted advertising and the provision of adv

  37. Slide 37: Glossary – Operational P&L (2/3)

    GLOSSARY – OPERATIONAL P&L (2/3) Number of Search & Display clients:  Average number of clients for the reporting period (average of number of clients present at the beginning and the end of the concerned period) owning a product of the “Search & Display” range Search & Display ARPA :  Search & Di

  38. Slide 38: Glossary – Operational P&L (3/3)

    GLOSSARY – OPERATIONAL P&L (3/3) Net external expenses:  Include external purchases: mainly printed publishing costs (cost of paper, printing and distribution of printed directories), database costs, information system development and operating expenses, communication and marketing expenses, and ov

  39. Slide 39: Glossary – Financial Structure

    GLOSSARY – FINANCIAL STRUCTURE Net financial debt:  Total gross financial debt, plus or minus the fair net asset value of derivative instruments used for hedging purposes and minus cash and cash equivalents Average cost of total debt:  Weighted average cost of bank debt and bond borrowings, annual

  40. Slide 40: Glossaire – Reach & Audiences

    GLOSSAIRE – REACH & AUDIENCES Reach (audience indicator created and published by Nielsen Médiamétrie)  Number of unique website visitors: the number of fixed, mobile phone and tablet Internet users who have visited a website during a given month  Reach: the traffic of a website or group of website

Solocal Group — Q2 2015 Earnings Presentation on 6ix