Solocal Group · EURONEXT:LOCAL
Solocal — Q1 2014 Earnings Presentation
34 slides from Solocal's earnings presentation, Apr 30, 2014
Slide 1: Financial Results for the 1st Quarter 2014
FINANCIAL RESULTS FOR THE 1ST QUARTER 2014 WEDNESDAY 30 APRIL
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
Slide 3: Ongoing Digital Transformation
ONGOING DIGITAL TRANSFORMATION
Slide 4: Highlights
Highlights Ongoing Digital 2015 transformation program Power and strong growth in audiences driven by mobile and partnerships Specialisation of the sales and marketing teams around 5 verticals Setting up of a new labour contract for the sales force, departure of about 300 who did not sign Di
Slide 5: Continued growth of PagesJaunes audiences
Continued growth of PagesJaunes audiences PAGESJAUNES AUDIENCE GROWTH IN VISITS TOWARDS PROFESSIONALS Q1 2014 VS Q1 2013 (in million of visits) 28 MOBILE +115% PARTNERS 13 101 FIXED +43% 71 +45% 32 47 MOBILE DIRECT -0.8% 106 91 FIXED -15% Q1 2013 Q1 2014 ∑ = +20% Fixed = +8% Mobile = +65% Internal s
Slide 6: PagesJaunes: development of transactional services
PagesJaunes: development of transactional services Transactional services Ordering meals / delivery at home - integration of Chronoresto Reserving - integration ClicRDV - integration LaFourchette On-line quotation - integration Keltravo Good Deals Reinforced leadership through the acquisitio
Slide 7: Mappy: development of web-2-store services
Mappy: development of web-2-store services Holding for a visual Route calculation and virtual visits from Mappy In food Integration UrbanDive Indoor views Product and brand search Brand display Several million references Acquisition of Retail Explorer (1st database of products and prices o
Slide 8: Setting up a new agile organisation
Setting up a new agile organisation Major Retail B2B Home Services Health & Accounts Public Marketing and commercial management Customer Service and Solutions Operational Excellence Customer Experience Q1 2014 Results – 30 April 2014 8
Slide 9: Commercial operational transformation
Commercial operational transformation Commercial management Sales tools Objective-oriented and vertical management Save time New contractual system: flexibility and abandoning Adaptation to the digital products the VRP sales representative contract (departure of Pleasant and ergonomic envi
Slide 10: Financial Results for the 1st Quarter of 2014
FINANCIAL RESULTS FOR THE 1ST QUARTER OF 2014
Slide 11: Group revenues: -5.4%
Group revenues: -5.4% Revenues affected by the Decrease in GOM linked slowdown of the Internet business to the business slowdown and management of the digital transformation -5.4% Revenues 228.0 M€ 215.7 M€ in €M GOM in €M 42.1% 39.9% 250 100 -2.2 pts 5.7 5.0 96.0 200 86.0 66.9 56.7 -15.2% 150 -10.4
Slide 12: Printed directories: Revenues at -15.2%, still a high margin rate
Printed directories: Revenues at -15.2%, still a high margin rate High profitability maintained Contained decrease thanks to the drop of -23% in the Printed directories business in production costs1 in France Revenues 66.9 M€ 56.7 M€ -15.2% GOM in €M In €M 44.8% 43.2% 80 35 -1.6 pt 70 30 60 13.4 30.
Slide 13: Internet: 71% of Group revenues, at -0.9%
Internet: 71% of Group revenues, at -0.9% Slowdown linked to setting up Decrease in GOM affected by the decline the new commercial organisation in the business and the management of the digital transformation Revenues 155.4 M€ 154.0 M€ -0.9% In €M GOM in €M 41.2% 39.1% 200 100 -2.1 pts 37.3 34.5 -7.
Slide 14: GOM decreased by -10.4%
GOM decreased by -10.4% Change in consolidated gross operating margin (GOM) in million Euros 96.0 1.8 1.4 86.0 -10.4% 1.7 (12.3) (2.6) GOM Q1 2013 Revenues Paper Other external Sales personnel Other personnel GOM Q1 2014 Print expenses expenses expenses Distribution Change -5.4% +23.0% -6.7% +3.8% +
Slide 15: Net income of €19.5 M impacted by GOM decrease and additional reorganization costs
Net income of €19.5 M impacted by GOM decrease and additional reorganization costs From gross operating margin to consolidated income In million Euros Q1 2014 Q1 2013 Change Gross operating margin 86.0 96.0 -10.4% Legal employee profit-sharing (2.6) (2.9) +10.3% Share-based payment (0.3) (0.6) +50.0
Slide 16: Net cash flow: €51 M as of 1st quarter 2014
Net cash flow: €51 M as of 1st quarter 2014 Net cash flow as of 31 March 2014 (in million Euros) 86 (17) (13) (20) 15 51 (41) 10 GOM Capex Net Tax Other Net cash Decrease in ∆ net cash Q1 2014 financial Operational flow borrowings Q1 2014 income Charges* Q1 2014 and other * Including primarily chang
Slide 17: Compliance with covenants as of 1st quarter 2014
Compliance with covenants as of 1st quarter 2014 Financial leverage Interest coverage 4.30x 4.00x 4.00x 3.75x 3.75x 4.11x 4.00x 3.92x 3.69x 3.57x 3.0x 3.0x 3.0x 3.0x 3.0x 3.73x 3.71x 3.62x 3.73x 3.72x 03/31/12 12/31/12 03/31/13 12/31/13 03/31/14 03/31/12 12/31/12 03/31/13 12/31/13 03/31/14 Net debt
Slide 18: Confirmed 2014 outlook
Confirmed 2014 outlook 2014 will be a year of structural changes, especially in the commercial area. In this context and in light of a mediocre economic environment, the outlook for 2014 is: Revenues decrease between -3 and -6% Normalized1 gross operating margin expected between €355 millions an
Slide 19: Questions & Answers
Sobcal GROUP : QUESTIONS & ANSWERS
Slide 20: Appendices
Sobcal GROUP : APPENDICES
Slide 21: -5,4% decrease in revenues
-5,4% decrease in revenues Internet: 71,4% of Group revenues at -0,9% Consolidated revenues by segment In million Euros Q1 2014 Q1 2013 Change Group revenues 215.7 228.0 -5.4% Internet 154.0 155.4 -0.9% as % of Group revenues 71.4% 68.2% Printed directories 56.7 66.9 -15.2% as % of Group revenues 26
Slide 22: GOM of 86.0 million euros, 39.9% of Group revenues
GOM of 86.0 million euros, 39.9% of Group revenues Gross operating margin by segment In million euros Q1 2014 Q1 2013 Change Group gross operating margin 86.0 96.0 -10.4% as % of Group revenues 39.9% 42.1% -220 bps Internet 60.2 64.1 -6.1% as % of Internet revenues 39.1% 41.2% -210bps Printed direct
Slide 23: Income statement: 1st quarter 2014
Income statement: 1st quarter 2014 In million euros Q1 2014 Q1 2013 Change Revenues 215.7 228.0 -5.4% Net external expenses (46.7) (45.9) -1.7% Salaries and charges (83.0) (86.0) +3.5% Gross operating margin 86.0 96.0 -10.4% as % of revenues 39.9% 42.1% Legal employee profit-sharing (2.6) (2.9) +10.
Slide 24: Tax rate evolution
Tax rate evolution Q1 Q1 2014 2013 Change Statutory tax rate 34.4% 34.4% Additional tax1 3.6% 1.7% +190 bp Partial deductibility of financial interest 6.6% -0.6% +720 bp (75%)2 CVAE (Cotisation à la valeur ajoutée des 4.7% 3.8% +90 bp entreprises) Other -0.5% 0.7% -120 bp Effective tax rate before n
Slide 25: Cash flow statement: 1st quarter 2014
Cash flow statement: 1st quarter 2014 In million euros Q1 2014 Q1 2013 Change GOM 86.0 96.0 -10.4% Legal employee profit-sharing (2.6) (2.9) +10.3% Non monetary items included in GOM 1.6 0.9 na Net change in working capital 18.9 20.6 -8.3% Acquisition of tangible and intangible fixed assets (16.6) (
Slide 26: Net cash flow as of 31st March 2014
Net cash flow as of 31st March 2014 Q1 2014 Q1 2013 Change Reported net cash flow (€M) 51.1 73.8 -30.8% - Interest payments of Q1 2013 postponed to April 2013 - (14.0) - Interest payments of March 2014 postponed to July 2014 (4.2) - - Sales force reorganisation 3.5 - Net cash flow excluding non-recu
Slide 27: Balance sheet as of 31st March 2014
Balance sheet as of 31st March 2014 In million euros 31 Mar. 2014 31 Dec. 2013 31 Mar. 2013 ASSETS Total non-current assets 221.7 214.8 208.5 Net goodwill 80.9 78.7 82.3 Other net intangible fixed assets 87.3 80.8 70.1 Net tangible fixed assets 23.3 23.6 24.3 Other non-current assets of which deferr
Slide 28: Net debt as of 31st March 2014
Net debt as of 31st March 2014 In million euros 31 Mar. 2014 31 Dec. 2013 31 Mar. 2013 Cash and cash equivalents 84.0 75.5 91.7 Gross cash position 84.0 75.6 91.7 Bank Overdrafts (1.1) (2.5) (3.3) Net cash position 82.9 73.1 88.4 Bank borrowings (1,234.6) (1,297.5) (1,368.2) Bond borrowings – Senior
Slide 29: Financial structure and debt maturity as of 03/31/2014
Financial structure and debt maturity as of 03/31/2014 2014 2015 2018 Total Margin (bp) / Size (€M) Rate (%) € 84 M € 1 171 M € 350 M € 1 605 M Tranche A3 905.3 400 Tranche A5 329.3 360 RCF 3* 20.0 360 A5 289 Total bank debt 1 254.6 389**/ 5.30% A3 Senior secured notes 350.0 8.875% Bank and bond deb
Slide 30: Deleveraging of about 1 time GOM and rescheduling of 2015 maturities
Deleveraging of about 1 time GOM and rescheduling of 2015 maturities Net debt1 (in €M) Maturity profile of gross debt2 (in €M) under the condition of the SFA homologation and 3.82x a capital increase of €440 M Bank debt HY debt €1,605M €- 400M €1,205M 3.71x 3.73x 350 1,915 1,742 1,171 2.74x 1,580 81
Slide 31: Glossary
Sobcal GROUP : GLOSSARY
Slide 32: Glossary - Operating P&L
Glossary - Operating P&L Group Digital revenues: Total of Internet revenues from PagesJaunes (pagesjaunes.fr, annoncesjaunes.fr, pagespro.com, websites and mobile Internet) and Internet revenues from all other subsidiaries in the Group Net external expenses: Include external purchases: primarily
Slide 33: Glossary – Financial Structure
Glossary – Financial Structure Net financial debt: Total gross financial debt plus or minus the fair value of derivative asset and liability hedging instruments and minus cash and cash equivalents Ratio of Net Debt to GOM: Such as defined in the agreement concluded with the creditors, i.e. the r
Slide 34: www.solocalgroup.com
So www.solocalgroup.com GROUP