Solocal Group · EURONEXT:LOCAL
Solocal — Q3 2020 Earnings Presentation
17 slides from Solocal's earnings presentation, Oct 22, 2020
Slide 1: Q3 2020 Activity and Revenues
Q3 2020 Activity and Revenues 22 OCTOBER 2020
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements. Any forward-looking statement does not constitute forecasts as defined in Commission Delegated Regulation (EU) 2019/980. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated eve
Slide 3: Content
Content 1 Q3 Revenues & Business review p. 4 2 Wrap up p. 14
Slide 4: Q3 Revenues & Business review
Q3 Revenues & Business review Pierre DANON Chairman of the Board & Chief Executive Officer Olivier REGNARD Chief Financial Officer
Slide 5: Q3 2020 revenues: on track
Q3 2020 revenues : on track In million euros Q3 20191 Q3 20201 Change Digital revenue decreased by -13.6% on Q3 2020 vs. Q3 2019 because of the Covid crisis impact converting into revenues. Digital revenues 123.7 106.8 -13.6% On a year-to-date basis, revenues decreased by -12.5% to 332m€ Secured Dig
Slide 6: Overview of Solocal revenues
Overview of Solocal revenues TOTAL Digital Digital Websites Digital Print Presence Adverstising YTD 2020 €88 m €52 m €192 m €332 m €25 m YTD 2019 €98 m €65 m €217 m €379 m €49 m Change -9,5% -20.1% -11.5% -12.5% -48.9% P.6
Slide 7: Post-lockdown sales dynamics
Post-lockdown sales dynamics Uneven speed of recovery VSEs SMBs Large Accounts & Networks • Ramp up of the transformation from • Several advertising campaigns • No slowdown observed on this “farmer” to “hunter” mode. Immediate delayed or postponed in this quarter recruiting of 80 new “hunters” in mo
Slide 8: 77% of customer base already in subscription mode
77% of customer base already in subscription mode A strong adoption of the A more secure visibility on our customer base subscription model (% of subscription mode Digital products sold1) Customer base Migration rate3 in subscription mode2 At end of Q3 2020 Q3 2020 for VSE/SMEs 79% 81% 72% 76% 77% 9
Slide 9: Loss of customer base almost divided by two on Q3 YoY
Loss of customer base almost divided by two on Q3 YoY Q3 2020 customer base overview Beginning of Period End of Period Q3 2019 - 16 k customers +13k -20k 336k customers customers 329k customers (vs +8k in Q3 2019) (vs -24k in Q3 2019) customers Q3 2020 - 7 k customers ARPA Average ARPA1 Average ARPA
Slide 10: Focus on customer retention
Focus on customer retention Strategic initiatives Q3 achievements 1 Subscription model • 77% of our customer base is in subscription mode1 at end of Q3 2020 • Connect offer launched 2 Improved value for money of our products • Website offer strengthened • 60 dedicated people2 3 Creation of a retenti
Slide 11: Customer satisfaction: our initial achievements
Customer satisfaction : our initial achievements Improvement in service claim 1 234 58,3% management - in Q3 2020 vs Q1 2020 Remaining claims at 834 EoP • Average claim resolution time almost 38,6% 44,6% % claims dealt with in divided by 2 less than 14 days • Stocks of claims1 reduced by -78% 266 •
Slide 12: Q3 2020: reduction in PagesJaunes traffic slowdown
Q3 2020 : reduction in PagesJaunes traffic slowdown • PJ SEO & Direct traffic : in recovery compared to previous 2020 Million visits on PagesJaunes quarters : -2.2% Quarter-on-quarter SEO & Direct traffic growth rate1 504 493 Q4 2019 Q1 2020 Q2 2020 Q3 2020 -15.6% -15.5% -12.4% -2.0% 325 317 Partner
Slide 13: A strengthened financial structure
A strengthened financial structure Sources Uses New shareholding structure1 River & Mercantile Other2 Capital increase JO Hambro 3% backstopped by Bondholders Cash injection 39% 3% c. €346m c. €118m Amiral TOTAL 5% Melqart C. €378m Debt reduction (set-off of 6% Additional financing drawn3 Bonds agai
Slide 14: Wrap up
Wrap up
Slide 15: Guidance confirmed
Guidance confirmed 2020 guidance confirmed 2021 is on track, despite the current crisis underpinned by a strengthened financial • More than 95% of revenues already secured structure • Group EBITDA above €130 million P.15
Slide 16: Appendix
Appendix
Slide 17: Breakdown of Bonds (ISIN FR0013237484) value after the capital increase
Breakdown of Bonds (ISIN FR0013237484) value after the capital increase in million euros P.17