Slide 1: Eniro Q4 report
Eniro Q4 report Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR February 7th, 2014
Slide 2: 1. 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: Summary of the year
Summary of the year Activities: SEK million % Total traffic to all sites increasing with 10% 8 000 35 Focus on mobile and ambitious targets for 7 000 30 revenue growth 6 000 Eniro has phased out Gula Sidorna and 25 5 000 becomes purely digital in core operations 20 4 000 Agreement with Googl
Slide 5: 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 6: Focus on growth
Focus on growth Growth is expected to be driven by: Mobile and multiscreen usage Increased customer base Growth in ARPA (average revenue per advertiser) Same look and feel on all screens Performance based products New revenue streams Activities H1 2014: Turn-By-Turn E-Business Video Soci
Slide 7: CEO summary
CEO summary Continued strong mobile growth – “Mobile Adjusted EBITDA 2013 in line with 2012 first” SEK 956 M vs. SEK 976 M Mobile growth +95% and 34% of all Cost of synthetic share program had a product searches done on mobile negative effect in adj. EBITDA of SEK 40 M Multiscreen organic reve
Slide 8: Strategic decisions taken
Strategic decisions taken Print phased out in 2014 Mobile first in development Print revenues 2014 from local books, Target of mobile revenues 2015 of after market decline of some 40%, some SEK 900 M SEK 250 M Launch of GPS based turn-by-turn mobile navigation in Q1 Further actions to improve
Slide 9: Q4 key developments
Q4 key developments Mobile search revenues increased 108% organically Cost savings Mobile searches of total searches on products-, Cost reductions SEK 17 M in Q4 (gross services and categories at 34% savings excl. for costs of restructuring- and synthetic share program SEK 87 M) Multiscreen reve
Slide 10: Revenue development per country
Revenue development per country SEKm 1 200 Q4 development 1 000 Poland -3% Finland -26% 800 Denmark +1% 600 Norway -7% 400 200 Sweden -6% 0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Sweden Norway Denmark Finland Poland 10
Slide 11: Mobile first: rapid growth in revenues and traffic
Mobile first: rapid growth in revenues and traffic Mobile revenues increased 104% to SEK 102 M Share of product and company search via mobile devices in Q4 % Mobile search 10% of total revenues in Q4 40 34% of all product- and company searches 35 are done on mobile devices 30 Eniro market share in S
Slide 12: Growing traffic
Growing traffic There are 8 M unique users (browsers) per week visiting Eniro properties of which: Traffic development, total and mobile • 1,8 M unique users (browsers) per week are visiting Million % from mobile devices 9 000 000 40% Number of unique browsers per week increased 8 000 000 35% with 1
Slide 13: Eniro addresses the local search market
Eniro addresses the local search market Eniro’s addressable market is valued to SEK 24 Estimated average growth of Eniro’s billion in 2012 addressable market 2014 according to local The market development is impacted by: market statistics is: GDP development Sweden + 12% Denmark + 8% User be
Slide 14: 2. Mattias Lundqvist, CFO
2. Mattias Lundqvist CFO
Slide 15: Financial development Q4 2013
Financial development Q4 2014 Highlights: Key financials Q4 2013 Restructuring costs of SEK 64 M due SEKm reorganization of support functions 3 000 -13% 2 704 and moving of Polish headquarter Incl. negative effect of 2 340 2 500 synthetic shares SEK 25 M Cost of synthetic share program 2 000 low
Slide 16: Revenue bridge Q4 2013
Revenue bridge Q4 2013 -6% Reported -8% Desktop 5 Organic search/Mobile 1,107 search +2% 1,091 53 5 39 33 80 Multiscreen +4% 18 Local search -4% 14 51 1,024 1,014 9 Reported Divested Currency Moved Organic Desktop Mobile Campaign Print Other Voice Adj. Acq. Reported revenues business effects publica
Slide 17: Cost savings
Cost savings 3.092 12 3.100 12 40 -237 3.050 40 3.040 3’rd party cost Gross savings in 75 Cost ex 3rd party 3.000 Q4 SEK 87 M 8 Including acquisitions 2.950 85 2.900 3.092 0 24 2.828 2.850 80 -253 2.965 2.804 24 2.800 7 2.750 71 92 2.828 17 2.711 0 2012 Divested Currency Organic Net Net Net Net Adj.
Slide 18: 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 Q1 2013 Q2 2013 Q3 2013 Q4 2013 EBITDA Net Debt Net debt/EBITDA 18
Slide 19: Change in net debt
Change in net debt Analysis of interest bearing net debt Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2013 2012* 2013 2012* Opening balance -2 519 -2 863 -2 704 -3 535 Operating cash flow 207 161 329 299 Acquisitions and divestments -6 43 33 70 Share issue - 0 - 376 Translation difference and other changes
Slide 20: Financial commentary
Financial commentary Amortizations Cash-flow and working capital Re-classification of the Norwegian Continued strong operating cash-flow trademarks Gule Sider and Ditt Distrikt from indefinite to a limited frame of 5-10 Negative working capital due to changed years annual amortization of some
Slide 21: 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 continued l
Slide 22: Appendix
Eniro Q4 report Appendix
Slide 23: Eniro share price and shareholder development
Eniro share price and shareholder development 60 50 40 30 20 10 0 Preference Changes since Jan 31, Dec 28, 10 largest holders (grouped) Capital % B-shares shares 30/12-2013 2014 2012 JPM Chase NA 8,2% 8 458 890 0 0,1% Swedbank Robur Fonder 7,8% 8 057 235 0 0,0% Total shareholders 11 060 -2 182 Staff
Slide 24: 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 25: Revenues
Revenues Organic revenue by category Oct-Dec Oct-Dec Jan-Dec Jan-Dec Revenue by country % 2013 2012 2013 2012 Oct-Dec Oct-Dec Jan-Dec Jan-Dec Desktop search -7 -4 -5 -3 SEK M 2013 2012 % 2013 2012 % Mobile search 108 95 99 116 Sweden 483 513 -6 1 719 1 879 -9 Campaign products 8 34 7 26 Multiscreen
Slide 26: EBITDA overview
EBITDA overview EBITDA by revenue area Oct-Dec Oct-Dec Jan-Dec Jan-Dec SEK M 2013 2012 % 2013 2012 % Local search 195 246 -21 670 777 -14 Voice 55 83 -34 251 279 -10 Other -30 -21 -43 -72 -80 10 Total EBITDA 220 308 -29 849 976 -13 Items affecting comparability Restructuring costs 64 19 106 48 Other
Slide 27: Balance sheet overview
Balance sheet overview Equity and liabilities Consolidated balance sheet Equity Share capital 309 2 529 Dec. 31 Dec. 31 Additional paid in capital 5 125 5 125 SEK M 2013 2012 Reserves -360 -107 Assets Retained earnings -1 421 -4 004 Non-current assets Total equity share holders of the Parent Tangibl
Slide 28: Multiscreen – Q4 2013
Multiscreen – Q4 2013 Total revenues increased by 2% Revenues - Multiscreen Organic revenues increased by 4% SEKm +2% 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 2012 2013 28
Slide 29: Local search – Q4 2013
Local search – Q4 2013 Total revenues decreased by 3% Revenues – Local search Organic revenues decreased by 4% EBITDA amounted to SEK 195 M (246) EBITDA-margin of 22,5% (27,6) SEKm -3% 1000 900 800 700 600 500 400 300 200 100 0 Q1 Q2 Q3 Q4 2012 2013 29
Slide 30: Voice – Q4 2013
Voice – Q4 2013 Total revenues decreased by 21% Revenues – Voice Organic revenues decreased by 25% EBITDA of SEK 55 M (83) SEKm EBITDA-margin of 34,6% (41,3) 250 -21% 200 150 100 50 0 Q1 Q2 Q3 Q4 2012 2013 30
Slide 31: eniro
eniro 2 Discover local. Search local.