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1
PubliGroupeInvestors' Day 2012Lausanne, 4 Dec 2012
2
SpeakerTheme
Intro / Market Analysis / Strategic Overview
Shaping a digital & mobile future— Driving digital and mobile growth— Developing new businesses
Time
30 min.
20 min.10 min.
A. Groth, CEO PubliGroupe
R. Petrikowski, CFO PublicitasCh. Morgan, Head P-Digital
Group
Segments
BREAK |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| ||||||||||||||||||||||||||||||||||||||||||||||||||||||| 30min.
E. Baehler, CEO local.chR. Martignoni, COO DMS
20 min.20 min.
Share buy-back programme & other finance
Concluding remarks
Q&A PART 2
End official part
Group A. Schmidt
A. Groth
20 min.
10 min.
.
Overview presentation order
Anticipating changes in print and media— Seeking efficiencies and automation— Strengthening the digital portfolioQ&A PART 1
Demo Improve Digital J. FrijtersCEO Improve Digital
30 min.
3
Preparing the Groupfor the digital marketing world
PART GROUP
Arndt C. GrothCEO PubliGroupe
4
Market conditionsin constant change
Situation analysismarket
01
5
Rapid change, in particular in print, requires Group to prepare faster for future ad market
Massive pressure on print Long term structural pressure, especially on print Stronger than expected decline 2012-15
Digital “wins” and impacts all sectors Digital media win RTA, mobile, social as key trends in digital Digital is setting scene also for other segments
Competitors move fast in complex landscape Value chain highly fragmented & specialised Large players like Google covering key positions Other sales houses invest in 360° marketing
capabilities and tech-based solutions
1
2
3
Key advertising trends
The scenario we are expecting for
‘advertising 2020’
Majority of digital inventory will be traded through automated platforms
Especially premium will remain people business, though with higher degree of centralisation
Efficiency, creativity and comprehensiveness will win
62012e
1,803
550
2011
2,004
543
2010
2,001
533
2009
1,915
517
2008
2,406
527
2007
2,487
516
2006
2,369
497
2005
2,299
479
2004
2,294
467
2003
2,302
455
Latest, apparently structural, loss of print ad revenues went beyond expectations
Source: WEMF; Stiftung Werbestatistik Schweiz; IMF; SECO; OC&C analysis1. GDP calculation based on production statistics
Print ad-spend vs. GDP, Switzerland
Ad spend print in CHF mGDP in CHF bn1
-0.1%
-12.3%
2.3%
4.0%
2.6%
2.5%0.1%3.8%
1.3%
Forecast
-10.0%
1 Massive pressure on print
Since 2008 Publicitas lost 15% top line
print revenuesin average yoy
7
Recent decrease of print exceeded expectations and appears to be accelerating
1 Massive pressure on print
-16%
-10%
-16%
1%
-3%
-7%-6%
0%
-3%
-6%
Ø -10%
Sep.Aug.Jul.Jun.May.Apr.Mar.Feb.Jan.
Source: WEMF; Stiftung Werbestatistik Schweiz; SECO; IMF; OC&C analysis
Swiss display ad revenues in print2012 vs. 2011
Print outlook 2013
Expectation for print 2012
“Last Investors’ Day”
Increasing momentum!
“Also depending on GDP development”
-2%-
+1%
-5%-
-10%
Oct.
Ø -8%
8
Market trends – Online double digit growth In Europe, substantial growth expected in video and mobile
Ad Spend, EMEA, 2011EUR€ bn1, % share per medium CAGR
2011-16F
100.2
Total 2011
13.6
Online Other
20.5
RTV
35.3
30.7
9.6
5.5
4.4
2011
20.5
2015F2014F
1,6Classified +9%
Display +13%
7.0
Search +12%
10.7
2016F
5.2
11.9
1.3
5.7
6.2
29.9
4.8
Mobile +32%
15.0
9.08.0
23.2
+13%
26.3
2012E
6.2
2013F
13.4
2,01.633.8
16.6
10.1
6.7
2,52.037.8
Video +34%
Ad Spend, EMEA, 2011-2016FEUR€ bn1, % share per online medium
Source: PwC, October 2012, DMS analysisNote: 1) In 2011 Euros, converted from US$
2 Digital “wins” and impacts all sectors
9
Digital, mobile, automation and social key trends
Premium
Mid-Tail
Rest
SegmentedInventory
Mobile / small screen Social
Main area of inventory growth
Big oppor -tunity e.g. for local.ch
Challenge for display advertising as new models need to be found
…has surpassed traffic on portals in US
… is winning market share in display in most geographies
Social successful on mobile
2 Digital “wins” and impacts all sectors
Broadscreen RTA
Share of RTA display sales increasing
Instead of sales skills, platform and technology skills are needed
“SALES”
10
Marketing Targets
Awareness Interest ActionDesire
CPMCost per Mille
ContactsReach
CPCCost per Click
Visitors
CPSCost per Sale
Sales
Display / BrandAdvertising
SearchAdvertising
PerformanceAdvertising
Digital covers all marketing disciplinesPerformance-based models highly attractive to advertisers
CPC
Cos
t per
Clic
k
CPL
Cos
tper
Lea
d
CPO
Cos
tper
Ord
er
CPA
Cos
tper
Act
ion
Performance Model
2 Digital “wins” and impacts all sectors
11
Traffic Creation Lead
Generation Action
CPC CPL CPA
BrandAwareness
CPM
Banner AdsText Ads
EmailContextual Ads
Keywords
CreativesUser
Right strategy mix is neededCombination of branding + transaction leads to success
2 Digital “wins” and impacts all sectors
12
Agency PublisherDemand-
SidePlatform
Supply-Side
Platform
Ad Exchange
Ad Network
AgencyTrading
Desk
Digital ecosystems increasingly complexFragmentation across the entire digital display ecosystem
Source: IAB; Google; Press
AD
VER
TISE
R
AU
DIE
NC
E
3 Competitors move fast in complex landscape
13
Other ad marketers are transforming at high speed: Video, agency services and platforms in focus
Source: Company information; press
Acquisitions &
Foundations
Own Products &
Developments
Foundation of creative agency "Sugar Ray"
Acquisition of Adyard (Postviewmarketer) in 2010
Expansion in the area of video advertising
Commercialisation of HbbTV
Mobile special advertising formats ("G+J ConnectAd" )
Performance-oriented campaigns (“optimobile”)
“Expansion of TV commercials towards cross-linked, multimedia commu-nicationconcepts”
“Expansion of the growth and future-oriented mobile advertising segment”
Ringier bundles all magazine ad sales in one unit
ToFo Media invests in studies on ad effectiveness, mobile products and wins new 3rd party clients
8 regional German newspaper groups form alliance for national ad sales
“Centrali-sation, ad efficiency and mobile”
Competitive trends
3
Participating in the ad network Ad Audience
Tailor-made cross-media solutions
Cover own and client inventory
Invest in platforms
“Expand scope to 360°cross-media solutions built on a broad inventory of own and clients’ titles”
Other
Competitors move fast in complex landscape
14
Group with broad range of assets, refocus needed
Situation analysis
PubliGroupe
02
15
PubliGroupe with a wide range of activitiesOrganised into three segments that operate mostly independently
Search & Find
Producer and seller of media products facilitating the search for persons, companies, productsand services focusing on local markets.
Digital & Marketing Services
Portfolio of leading international marketing and technology service companies, helping brand owners to spend marketing budgets more effectively.
Media Sales
Partner for media owners and advertisers worldwide, using effective advertising solutions.
*
* Improve Digital acquisition pending COMCO approval
16
In 2012 PubliGroupe executed on Group level…All Group issues addressed and executed
Corporate Governance
Sale real estate
Change accounting standard
Dividend
— End of double mandate of HP Rohner— Announcement made to end voting restrictions after restructuring of Publicitas,
latest by 2014
— Divested 4 assets in 2012: 3 Lausanne buildings, 1 in Bern— Sale proceeds to be returned to shareholders; intention to return CHF 45 m to
shareholders through share buyback and special dividend
— Switched accounting standard from IFRS to Swiss GAAP FER — Media Sales and DMS (SVBmedia) revenue disclosed as commission earned
instead of the total billing of ad space, providing for more transparency
— Strong dividend return upheld in 2012 with the distribution of the amount of CHF 6 per share, composed of a dividend of CHF 3.80 and of CHF 2.20, distributed tax-free from reserves from paid-in capital.
PubliGroupe execution of its strategic cornerstones
17
Media Sales
Search & Find
DMS
Corporate & Others
— Operational savings of CHF 10 m vs. 2011; In 2013, further cost reductions already implemented of CHF 16 m
— Starting in 2013 FTE of 1,040 vs. to 1,196 at the end of 2011— Developed and launched new digital products such as Ad4MaxGeo, The Mark
— Further strong growth of digital revenue, whereby online revenue keeps at double digit pace; online order intake outperforms print
— Uncontested #1 on mobile with > 2 m downloads; 42% ahead on No. 2 with apps in use for iOS in October 2012
— Successful entry into new areas (restaurant booking and web site production)
— Focus sharpened towards technology-oriented scaleable business models with sale of Namics and acquisition of Improve Digital *
— Zanox extended market lead in performance advertising— Entered fast growing RTA market with Spree7 / Improve Digital*
Segment execution of its strategic cornerstones
— Continued divestment of non-strategic assets
… and strengthened operational assetsRestructuring Media Sales, strengthening leadership positions of local.ch and Zanox, while investing in growth fields SSP and DSP
* Improve Digital acquisition pending COMCO approval
18
Media SalesSearch & Find DMS
Positioning
Strategy
Ready for 2020
However, still huge differences between segmentsS&F and DMS well positioned, refocus needed at Publicitas
19
Agency PublisherDemand-
SidePlatform
Supply-Side
Platform
Ad Exchange
Ad Network
AgencyTrading
Desk
Digital display ecosystem and selected PubliGroupe investments
PubliGroupe well represented in complex ecosystemPubliGroupe with stakes across the entire digital display ecosystem
Source: IAB; Google; Press
AD
VER
TISE
R
AU
DIE
NC
E
"TheMark"
*
* Improve Digital acquisition pending COMCO approval
20
To play key role in digital advertisingmarket
Strategy
03
21
Group positioningAdvertising revenue remains key monetisation driver for content owner
•It‘s not about e-commerce•But media services around media buying and selling•Connecting Supply and Demand
Media is the DNA
•Disintermediation of sales houses leads to automisation•As a result need to offer self service solutions•Data is a going to be a key USP
Owning the end to end relationship between supply
and demand
•IT-platform for print ad processing•Automated trading platform (DSP or SSP technology)•CRM-Tools, media-buying and -planning software and services
Operating the technological platforms for publishers,
agency and advertiser partners
•Premium media cannot be fully automised•Every publisher contract and each single order needs to be profitable•In shrinking markets outsourcing is becoming even more important
Premium media sales where appropriate
•Exclusive contracts will only apply if we’ll get a premium to run the business really profitably
•Applying the arbitrage model to realise higher margins
Entrepreneurial independency (i.e. with excl. publisher
contracts)
Optimiseinternational network
•Huge opportunity for Publicitas International in Digital Media•New content owners not prepared for ad sales•Very few remaining competitors in premium media
22
PubliGroupe must manage strategic shiftIn order to achieve profitable, sustainable business position
23
Based upon trends and priorities, focus on following strategic themes going forward
Further develop mobile & digital offering
Invest in transaction-oriented fields (ieonline booking)
Increase sales force efficiency and effectiveness
Search and Find
Redefine publisher relationships to obtain operational autonomy
Accelerate growth initiatives and growing digital
Further harmonizing processes + IT
Media Sales
Capitalise on Zanox leadership in Europe
Materialise on key trends - RTA, mobile, data
Strengtheningportfolio through M&A
Digital Marketing Services
Leaner group structure
Management of non-strategic asset
Corp & Others
“Transformation and growth in sales and services”
PubliGroupe
24
Holding Structure – Status QuoThe business segments are treated differently
Media SalesSearch and Find DMS
Operations
Strategy
Finance
Holding Function
25
Holding Structure – ObjectiveEqual treatment of all business segments
Media SalesSearch and Find DMS
Operations
Strategy
Finance
Holding Function
26
PubliGroupe as lean holding going forwardFocus on financial, M&A and innovation functions,strengthening operational management on business level
CEOA.C. Groth
Media Sales Search & Find
CFOA. Schmidt
Head of HRB. Schleipen
General Secr.J.-D. Briod
Head of CCB. Werder
Head of CDR. Martignoni
Board
BoardBoard
**
*
*
*
* Member of PubliGroupe Executive Committee effective Jan 1st, 2013
Zanox
Board
Other: ID SVB
Board
DMS
27
PubliGroupe Target indicator
Target 2015 Result 2011 *
Profitability Operating result CHF 40 - 50 m CHF 21.9 m
Earnings per share ** CHF 12 - 17 CHF 9.1
Group KPIs (on Swiss GAAP basis)Financial objectives for Group
* restated, Swiss GAAP FER
** 2015: after share buy-back programme
28
Key immediate actions
What How
1. Holding
2. Publicitas
- Leaner holding, reduced FTE count- Refocus on key activities- Increase speed of innovation and reinforce
corporate development on Group level
A) Strengthening management- Operate through Board only- Fill open executive positions
B) Transform business model- Redefine publisher relationships to obtain
operational autonomy- Continue restructuring as client-facing
organisation- Ongoing right-sizing to anticipate market
development
29
Reducing costs, redefining publisher relationships & accelerating digital
PART MEDIA SALES
Rüdiger Petrikowski, Chris Morgan CFO Publicitas Head of P-Digital
Situation, mid-term objective and measuresPublicitas is continuously reducing its cost base and accelerating growth initiatives in Switzerland and internationally
Situation
• 2012 a year with a loss of around CHF 22 m due to a much stronger market decline than expected and loss of market share
• Expected net revenue decline 2011/12 of around CHF 26 m
• Savings of announced measures of CHF 10 m achieved. Not sufficient for 2012, however with additional impact of CHF 16 m in 2013
Mid-term objective
• Move to portfolio sales addressing broader advertising segments
• Grow share of non-print/digital net revenue significantly
Measures
• Redefine publisher relationships to obtain operational autonomy
• Ongoing right-sizing to anticipate market development
• Accelerate growth initiatives in Switzerland and internationally
Print advertising CH1
Market environment 2012 SwitzerlandPublicitas suffers from a strongly decreasing print market accompanied by an insecure economic situation
667
595
-10%
Daily, weekly regional, and
Sunday papers
Professional,specialized,
consumer, finance,business press
2012e
1’803
1’208
2011
2'004
1’337
1) PWC Swiss Entertainment and Media Outlook 2012–2016
Internet advertising CH1
12
10
Digitalnewspaperadvertising
16
Classifieds
Banner/Display
2011
Mobile
769
2012e
6175
362
176
101
29Affiliate
805
-19%
Video
Search
+5%
401
195
8418 34
CHF m CHF m
Major effects on 2012 operating resultSavings of announced measures of CHF 10 m achieved, with noticeable effect for 2013
-5
-5
0
~-16
+10~-26
~-22
-6
Other effectsNon-recurringOp. Result
ACT 2011 Net revenuedecline
Realised Opexsavings
2012e
Effect of initiatives in 2013 Valuable starting point for a break-even result whilst anticipating a 8% downturn in the Swiss print market
Cost measures
Right-sizing to anticipate market development effective 2014 (partly compensated by digital build up)
Growth initiatives
ongoing
Digital growth in Switzerland and Europe driven by the real time advertising sell side platform
Implemented: Personnel reduction effective beginning 2013
Implemented: Overhead and IT reduction
>16 m
2 m
10 m
6 m
Op. resulteffect 2013
in CHF
Customer and portfolio expansion in TV, OOH, digital 3-4 m
5-6 m
1
2
Organisation adapted to the market downturnSmaller and leaner organisation in 2013
388
~45
~370
Closing 2011
1.196
748
31 29
Beginning 2013
~1.040
~600
~25
-150 FTE
-20%
Publicitas CHCinecom
Dedicated digital CHInternational Network
FTE
• Full year effect 2013 of a smaller and leaner organisation
• Operational efficiency secured through centralisation
• Build up of digital competences
• Further adaptation according to market development with a shift from print to online capabilities
1
2
3
4
Implemented leaner organisation
Strategic initiatives 2012Leaner cost base anticipated for 2013 & new products launched
Acceleratethe digital agenda& explore new opportunities:
Higher share of digital turnover and adjacent media sales business
Exploit print business:
Leaner and more flexible cost structure
1st PILLAR
2nd PILLAR
Transparent service levels and fair pricing• Publisher negotiations ongoing
Grow Digital• At least in line with the
market
Grow new business• Expand in adjacent business
Objectives AchievementsSwiss business• Process harmonisation• Centralisation of sales back-office • Improvement of sales efficiency
International• Divesture and restructuring
Central cost• Optimisation of admin services• Optimisation of IT
• Completed• Depending on publishers• Organisation implemented with
time delay
• Americas implemented• Europe stronger efforts needed• Completed• Implementation for Jan.'14
• Digital resources unified• New products launched• Mobile initiative started
• Acceleration of local OOH business in India
• Acceleration of TV business in Asia
Business challenges of representation businessA dedicated sales approach limits scalability due to asymmetric interest between publishers and Publicitas
Title 5(mono-media)
• Limited scalability due to lack of operational autonomy
• Low resource utilisation• Declining relevance to
advertiser
Dedicated Sales: Sales resources are directly allocated to single titles.
Title 6(mono-media)
Title 11(mono-media)
Title 4(mono-media)
Title 10(mono-media)
Title 8(mono-media)
Title 7(mono-media)
Title 2(mono-media)
Title 1(mono-media)
Title 3(mono-media)
Title 9(mono-media)
Publicitas as an outsourced sales force for print publishers
Pursued business model A portfolio sales approach allows Publicitas to benefit from economies of scale and maximise the advertisers’ share of wallet
• Scalability• Higher sales effectiveness• Maximisation of advertisers’
share of wallet
Portfolio Sales: Sales resources sell media portfolios that address a large part of advertisers’ need.
Publicitas as a match-maker for multiple media portfolios' Media portfolio
(multiple media)
Mid-term product and geographic mixGrowth in digital and international markets does not compensate for a strong decline in the Swiss print business
2015e
~125
60-70%
30-40%
2012e
~145
~87%
~13%
Media Sales Total Net revenue in CHF mn
PrintNon-print
2012e
~145
~77%
~23%
2015e
~125
60-65%
35-40%
SwitzerlandInternational
By media By geography
International Publicitas Network Accelerate restructuring, strengthen business and leverage industry expertise in more than 20 countries
Mumbai
New Delhi
Bangkok,
SingaporeKuala Lumpur
Hong-Kong
Shanghai
Beijing
Miami
Vancouver
New York
Toronto
Montreal
Honolulu
Madrid
London
Paris Frankfurt
AmsterdamBrussels
Basel/Zurich/GenevaMilan
ViennaMunich
Los Angeles
Dubai
Journey to future business modelMeasures initiated as strategic initiatives 2013
Acceleratethe digital agenda& explore new opportunities:
Higher share of digital turnover and adjacent media sales business
Exploit print business:
Leaner and more flexible cost structure
1st PILLAR
2nd PILLARGrow Digital• Accelerate digital and mobile product offering to address
multiple advertising segments
Grow new business• Accelerate development of comprehensive media portfolio
Swiss business & Central cost• Finalise sales efficiency• Reduce IT landscape complexity massively and implement
scalable system based on standard software• Continue right-sizing to anticipate print market decline
International• Accelerate restructuring and leverage industry expertise
Transparent service levels and operating autonomy• Redefine publisher relationships
Inter-national
CH National
Publicitas’ digital and adjacent product portfolioAdvertising products are sold in Switzerland and overseas in more than 20 countries
CH Local & Regional Ad4Max Geo
Product
Ad4Max
AdMarket
Instanz Lead Generation
The Mark(Premium SSP)
Premium Websites
Advertisers
SME
Performance-oriented advertisers
Media agencies, national clients
National clients
Media agencies, trading desks, major clients
Media agencies, key clients
Publishers
Google, FacebookLeading online premium publishers
Cost effective cross-border inventory sources
Leading Swiss print and online media owners
Swiss online media owners
Leading Swiss and international online premium media owners
International online premium media owners (worldwide)
41
Dive-in: Publicitas Digital - advertiser oriented servicesLocal and regional products
• A media package built on top-tier digital
platforms
• Turnkey media management service, with
real-time reporting for time-pressed SME
advertisers
• Geo-local advertising footprint
• Leveraging our long-lasting relationships
with SME clients
• Sold by Publicitas local/regional sales force
and dedicated P-Digital Sales unit
42
Dive-in: Publicitas Digital - advertiser oriented servicesLead generation by Instanz
• Tailor made scalable lead generation
solutions for B2C businesses
• Full service agency covering the complete
lead generation funnel
• Long-lasting client relationships
• Insurance price comparison engine for
media platforms
• Innovative IT lead generation solutions
(Augmented reality, mobile)
43
Dive-in: Publicitas Digital - advertiser oriented servicesNational products for agencies and clients
• “Open Media Services” - neutral market
positioning
• Delivering digital media services and
consulting to media agencies and key
accounts
• Tools for the planning, calculation,
booking, processing, controlling and
reporting of campaigns for Swiss media
agencies
• Uniquely comprehensive data resource
covering the Swiss media landscape
• Helps to drive much-needed efficiencies
for agencies44
Dive-in: Publicitas Digital - publisher oriented services National and international products for media owners
• A digital marketplace, where premium
media owners enable their inventory to
be sold to real-time / automated
buyers
• Leveraging Publicitas existing
relationships as a trusted media sales
partner for premium publishers
• Leveraging the Publicitas international
network of sales offices in 21 countries
• Underpinned by Improve Digital’s
leading-edge technology
45
46
Capitalizingon new online and mobile offerings
PART SEARCH & FIND
Edi BählerCEO local.ch
Search & Find
Further driving digital growth capitalisingon new online and mobile offerings
Edi Bähler4 December 2012
Online content(website, video…)
Events, exhibition
shows
Vertical portals
Local media (press,
radio, outdoor)Classified
Leadgeneration
(quotations…)
Booking
Offline content(flyers, posters)
Communication and offline medias
Online Directories
Pay-per-performance models
CRM(Direct marketing)
SEMGroupon-like
models
SMEs Advertising needs(marketing & communication)
Print Directories
Traditional "Search & Find" and online marketing
Emerging models Strong growth Measurable ROI
Classical media. Poor growth. Not performance-based
User generated content Editorial content User knowledge
SMEs evolving marketing and communication needs facing increasing complexity
48
Market dynamics – there are markets with distinct growth potential
Others
Local.ch
search.ch
gate24.ch
Renovero, …
Homegate,Immoscout24,home…
swissfriends.ch,..
Jobscout24.ch,jobs.ch,…
Website creation & content
Directories
Online content
Lead Generation
Mar
ket M
atur
ity
Classifieds
Printed Directories
OnlineSearch &
Find
-5% to -15%
+10% to +20%
DeinDeal, Groupon, ..
+25% …+15%
Booking
Couponing
Autoscout24.ch,…
+10% to +20%
49
Sales Channels
MatchmakingTraffic
Matchmaking dynamics – maximise value for customers & users, monetise on services
Population
cust
omer
sus
ers
entry products advertising
products
customer loyalty
user loyalty
Inbound T.
Outbound T.
Key Account
Special Sales
Direct
Organic
AdWords
Partner
SME
Self Service
App-Usage
transactions
Audience
Others
App-Dwnld
Fieldsales
Matchmaking / Conversion ➜ Value
50
Key drivers for successful matchmaking
User insights
Deeper advertiser information
Harmonised employer conditions
Strategic personnel resource management
IT
Processes
Print cost structure
Managed audience(Print, Online, Mobile)- User experience design- Search engine optimisation- Local editorial content- User generated content
Brand strength
Leader in audience
Products(Print, Online, Mobile)- Optimise- New- Mobile - Lead generation
Sales power & efficiency: – Incentive– Role Model– CRM– Multichannel
Strong monetization engine
Operational excellence People and cultureMatch-making data
51
289
411
0 100 200 300 400 500
No.2
local.ch
[k]
Unique clients2 iOS (October 2012)
Uncontested #1 on mobile with > 2m downloads
1.0
1.2
1.4
1.6
1.8
2.0
2.2
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct[m
m]
Total downloads on all platforms1
2 m downloads
2011 2012
1 Source: Official platform Stores (iOS,Android,Blackberry,W7,Nokia)2 Source: Netmetrix Mobile iOS (http://netreport.net-metrix.ch/mobile/)
2mm downloads1
of local app on all mobile platforms
42% ahead on No. 2with apps in use for iOS in October 2012
Achieved exclusively with matchmaking traffic
+42% ahead
52
#1 internet page of Switzerland in terms of unique visitors
2.5
2.7
2.9
3.1
3.3
3.5
3.7
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
[mm
]
Unique clients1
local.ch No.22011 2012
1 Source: Netmetrix
Biggest internet pages of Switzerland1 in October 2012
Unique clientslocal.ch 3,616.000search.ch 3,497.00020Min.ch/dt 3,110.000Blick Online 3,092.000Bluewin.ch 3,057.000Sbb.ch 3,035.000Microsoft Ad 2,852.000sf.tv 2,525.000Tagesanzeiger.ch 1,675.000NZZ Online 1,539.000
site migration
SEO
53
Online content
CouponingSelective Banner
Successful launch of a web product with big potential
Launch of a second successful mobile product with big potential
New (2012) mobile & online products account for a substantial portion of total order intake YTD
Mobile First
Mobile Business
Alert
Presence Web PlusBroad & Mobile
54
Offer evolution towards changing userhabits and needs – buyers guide
Local Guide
Still more than 70% of household usage of print
Increase attractivitywith local editorial content
Cross-media offers under one brand
Environmental sustainability
Editorial Content
55
Booking
New restaurant special guide & booking feature launched 10/2012
October 2012 (first month live)• ca. 1.5 [k] total reservations• 20 bookable restaurants
local.ch "RestoGuide"• Finding restaurants• Find and select restaurants• Book restaurants
Localina Products• Online reservations• Reservation management• Customer CRM• Settings & analytics
56
2008 2009 2010 2011 2012 2013
Order intake
E‐Media order intake C‐Media order intake SUM order intake
Online order intake compensates decline of print order intake
57
Conclusions
UPDATE PUBLIGROUPE
Review: Online revenue keeps on growing with double digit and online order intake
outperforms print decline Biggest Internet page in Switzerland in terms of unique visitors Uncontested #1 in mobile matchmaking Print offer evolution towards changing user habits and needs New (2012) mobile & online products account for a substantial portion of total
oder intake YTD New restaurant special guide & booking feature launched 10/2012
Outlook: Driving further digital and mobile growth Capitalise on leading position and strong heritage Develop new revenue models on the basis of continued above-average profitability
58
59
Capitalising on Zanoxleadership & trendsin RTA
PART DIGITAL & MARKETING SERVICES
Renato MartignoniCOO DMS
Market trendsFour key trends that guide DMS’ strategic priorities
Source: DMS Analysis
1
2
3
4
Continuing shift to onlineOnline advertising continues to grow at double digit rates, despite low overall growth
Shift to mobileA key driver of online growth is increasing usage and anticipated spend on mobile devices
Shift to real-time advertisingNew, efficient and ‘intelligent ’ RTA-based business models will gain in importance
Data-driven consolidationIntermediaries in the advertising ecosystem will consolidate to maximize access to intelligence
60
Market trends – shift to onlineOnline, with display in particular, continues to grow above market rates
Source: PwC, October 2012, DMS analysisNote: 1) In 2011 Euros, converted from US$; 2) Display includes video, and all online categories include 1/3 of mobile
Ad Spend, EMEA, 2009-2016FEUR€ bn1, % share per medium
5% 5% 5% 5% 5% 5% 4% 4%
22% 21% 20% 19% 18% 17% 16% 16%
12% 11% 11% 10% 10% 10% 9% 9%
6% 7% 8% 9% 9% 10%4% 4% 5% 5% 5% 5% 6% 6%
5%5%
12%
2013F
113
30%
12%
2014F
12%
29%
2015F
12%
125
13%
119
14%
29%
107
30%
12%
13%
2012E
TV
Print Magazines
Online Search 2
Online Display 2
Online Classifieds 2
Other
2016F
Radio
100%
Print Newspapers
103
30%
11%
13%
2011
100
30%
10%
14%
2010
98
31%
9%
14%
2009
93
29%
8%
15%
CAGR 2009-12E
CAGR 2012E-16F
+11%
+18%
+15%
-1%
-2%
+2%
+4%
+10%
+16%
+12%
+2%
0%
+2%
+4%
+4% +5%
61
Market trends – shift to mobileThe gap between mobile ad spend and mobile time spent is expanding
Source: eMarketer, October 2012, DMS analysis
2%3%
12%13%
25%
40%
9%12%
2%
9%
21%
39%
PrintNewspapers
MobileRadioOnline PrintMagazines
TV
Ad SpendTime Spent
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
2009 2010 2011 2012
∆=7pp
∆=10pp
MobileAd Spend
MobileTime Spent
∆=5pp
Ad Spend vs. Time Spent, USA, 2012% share per medium
Mobile Ad Spend vs. Time Spent, USA, 2009-12% share (percentage point (pp) difference)
Anticipated Ad Spend Trend
62
Market trends – shift to real-time advertisingRTB is expected to double its share of online display transactions
Source: IDG, 2011, DMS analysis
RTB vs. Non-RTB Display Ad Spend, Germany, 2011-15FUS$ bn, % share per type
96% 92% 87% 83% 80%
8% 13%20%17%
1.91.81.7
2012E 2013F
100%2.5
2011 2014F
RTB Ad Spend +68%
Non-RTB DisplayAd Spend +6%
2.2
2015F
4%
CAGR 2011-15F
+11%
63
Market trends – market consolidationThe RTB-driven ecosystem is consolidating to maximise access to data
Source: DMS analysis
Horizontal Consolidation
Trading DesksAgencies DSP Tech ExchangesSSP Tech
Sales Houses Publishers
Ad Networks • The ‘classic’ advertising
ecosystem is highly fragmented with insulatedunique data assets
• Data is key for effective targeting and RTB-bidding strategies
• Through consolidation, more consistent data can be used to define and execute a bidding strategy
• This will result in a higher value per (targeted) inventory asset, and a higher RoI for advertisers
64
DMS strategyFocusing on adding sustainable value to our key clients and consumers
Source: DMS analysisNote: *) Mediamath is an independent partner of PubliGroupe
Usability Intelligence Trust
“Offer the best user experience throughoutthe booking process”
“Offer the most intelligent data-driven pricing and
placement strategy”
“Offer the highest standards in privacy, data and transaction security”
KEY VALUESKEY VALUES
Agency /Advertiser
RTB TradeDesk
RTB Trade Technology PublisherRTB Trade
DeskRTB Trade Technology
External Data, Data Management, Data AnalyticsInternal DataInternal DataInternal Data Internal DataWeb
MobileVideo
…
*
65
DMS performance overviewFinancial Recap 2009-12 in CHF m
* Reported view: in 2012, Namics is included January - May. Full year included in 2009-2011.Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange rate (2012).
Portfolio
• Zanox not fully reflected in DMS P&L due to accounting restrictions
• RTB-DSP provider Spree7 launched in Berlin in cooperation with MediaMath
• Acquisition of Improve Digital (85% stake) is awaiting regulatory approval
• Namics business sold to the partners -2012 results not fully comparable
Rev
enue
*O
pera
ting
Res
ult*
49.4 50.6 52.1 0
100
200
300
2009 2010 2011 2012
9.7
2.3
7.4
0
6
12
18
2009 2010 2011 2012
Reported proforma
(from 2013, pending approval)
66
DMS performance contributors (proforma)Zanox (47.5%) is to DMS performance
* Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange rate (2012).
• Zanox is our largest investment with a significant EBIT contribution
• SVBmedia is a profitable media agency in the Netherlands
• Spree7, Berlin, launched in May 2012 is a RTA trade desk, FTE 8
• All units invest in future digital developments
Rev
enue
*O
pera
ting
Res
ult*
185 193
Q1-3 2011 Q1-3 2012
SVBmedia
HQ
Spree7
Zanox
96
Q1-3 2011 Q1-3 2012
Spree7
SVBmedia
HQ
Zanox
67
ZanoxThe European leading performance advertising network
European Leadership
Engaging > 4'000 advertisers Connecting relevant publishers
#1 position in market
# 2
Performance = Sales
Revenues (€M)
227260
210
312
191
327
-9%-8%
+5%+20%
Tradedoublerzanox group9M/2010 9M/2011 9M/2012
EBITDA (€M)1)
8
14
11
18
1
16+35% -87%
-14%+32%
Tradedoublerzanox group
Note: Tradedoubler exchange rate SEK/EUR 0,111) Tradedoubler EBITDA 2010 not including amortization of loans of €26,6MSource: Tradedoubler Interim Reports Jan-Sep 2011 & 2012
9M/2010 9M/2011 9M/2012 9M/2010 9M/2011 9M/2012 9M/2010 9M/2011 9M/2012
ZanoxOutgrowing our closest competitor
69
• Online advertising markets in Europe still growing – driven by budgets shifting from offline to online and rapidly growing online retail sales
• Online advertising continues to move more and more towards performance-based models – as advertisers increase their focus on ROI
• Synergies from zanox network gaining in importance – for serving large international advertisers and from a cost perspective
Opportunities
• Difficult macro-economic environment – with reduced consumer spending in some key industries and markets (esp. Southern Europe)
• Pricing pressure growing – as especially large advertisers demand volume discounts and insource
• Performance-based alternatives to affiliate marketing gaining ground – e.g. re-targeting, real time bidding
Challenges
Source: zanox analysis
ZanoxOpportunities and challenges
70
Networkgrowth
1
Productinnovation
2
International expansion
3
Source: zanox analysis
• Further acquiring and growing advertisers andpublishers network – locally and globally
• Leveraging 3rd party cooperations
• Core affiliate platform evolution• Mobile innovation• New performance-based models
• Profitably growing our new countries (Brazil, Eastern Europe, Turkey)
• Evaluating further expansion moves (organic and M&A)
ZanoxZanox has a sound strategy in place
71
Spree 7DSP start-up in partnership with leading tech provider Mediamath
• Oliver Busch (Managing Director)
• Alexander Thurner (Director Sales DACH)
• PubliGroupe participates with 80% in Spree7, Mediamath holds the remaining 20%
• Mediamath is a leading global DSP technology provider, headquartered in the United States, that gained the #1 position in recent Forrester research
• Spree 7 is a managed service provider to agencies and advertisers in the DACH region, with preferred access to Mediamath technology
• PubliGroupe intends to develop a leadership position in DACH DSP markets, combining best-in-class service provision with leading technology
• Start-up, founded mid 2012 with headquarters in Berlin
• Grown to 8 employees since foundation
• Exclusive relationship with Mediamath in DACH region
• 2012 focus was on business incubation; 2013 focus will be on gaining market traction and growth
• German RTA market is expected to grow at a rate of 68% in coming years
Company factsPowered by:
72
Improve DigitalLeading European SSP player
Rising Star 2011 Award
• Joelle Frijters (CEO)• Janneke Niessen (CIO)
• PubliGroupe acquires 85% of Improve Digital
• Acquisition is subject to approval by the Swiss Comco
• Part of PubliGroupe investment to fuel growth of company and accelerate its geographical expansion
• Publicitas will use Improve Digital technology for its high premium market place
• Founded in 2008 with headquarters in Amsterdam and offices in London, Madrid, Munich and Paris; 60 employees
• Proprietary technology, RTA enabled - the '360 Yield Platform'
• Over 70 premium European publishers
• Billings in 2012 expected to reach CHF 20 m, more than double compared to last year
• Close to 100 bn ad impressions running through the platform
Company facts
73
ConclusionThree key points to win
Capitalise on Zanox leadership in Europe Leverage innovation and efficiency investment through clients and publishers European network
Embrace and focus on key trends - RTA, Mobile, DataDrive profitable growth
Execute consistently on key initiatives - Improve Digital, Spree7Hire and retain key people to achieve consistent and timely execution
74
1
2
3
75
Solid financial situation; share buy-back programme
PART FINANCE
Andreas SchmidtCFO
76
Agenda
Divestment results
Financial situation: cash, returns & investment capacity
Share buy-back programme
Non-operating assets
1
2
3
4
Conclusion5
77
Divestment resultsContinuation of strategic asset management in 2012
1
Divestment of non-core assets
2010 2011
37% BAZ Medien / 19.9% EdipresseReal estate Baden / Lausanne
Emphasis Video (EVE)Huashang InteractiveCity MediaReal Estate St. Gallen
2012
NamicsSüdostschweiz Publicitas AGReal Estate Bern & Lausanne
• Disposal of 91% interest in Namics AG (including German and US subsidiary)
• Disposal of 50% interest in Südostschweiz Publicitas AG (SOP)
• Disposal of four real estate properties in August 2012 for a total of CHF 85 m, resulting in after tax gain of CHF 39 m.In total approx. CHF 52 m net book gain in 2012 accounts
28.415.5 13.4
39.0
0
10
20
30
40
50
60
Net book gain from divestments, in millions of CHF
2010 2011 2012 estimate
52.4
78
Divestment resultsFour real estate assets were sold in August 2012
1
• Three buildings in Lausanne (Toises 12, Mon Repos 22 and Mousquines 4) and one in Bern (Seilerstrasse 8) were sold in August 2012
• Disposal of four real estate properties will produce an after-tax book profit in amount of CHF 39 m.
• An important part of the proceeds will be returned to the shareholders of PubliGroupe, as announced in early 2012
Bern Lausanne (Mon-Repos)
Lausanne (Mousquines)
Lausanne (Toises)
79
Financial situation:Strong cash position despite unsatisfactory operational cash flow
2
Note: *) Contains dividends paid to shareholders of PubliGroupe and dividends paid to minority interests by Group companies
*
80
Financial situation:Sufficient investment capacity to finance future growth
2
in millions of CHF1st half year
2012
Available cash 95.6
Free bank facilities 35.0
Operating cash need -30.0
Financial headroom 100.6
(+) Net proceeds from real estate sale
(-) Planned refund to shareholders (early 2013)
(-) Bank debt repayment
(+/-) Expected operational cash flow for the 2nd half year of zero
Expected financial headroom for 2013 remains in the range of CHF 100 m after all transactions
Outlook 2012 / 2013
81
Planned return of proceeds:
• As announced previously, PubliGroupe intends to return a big part of the proceeds generated by the sale of the real estate assets to its shareholders
• The ambition of the board is to pay back a total of CHF 45 m
• A share buy-back programme of CHF 25 m via a second trading line on the SIX Swiss Exchange, approved by the Board of Directors will be launched early 2013
• It is planned that the Board of Directors will propose to the 2013 Annual General Meeting:
− Extension of the buyback programme or a new programme, depending onthe volume that has been repurchased by then.
− A proposal to pay a special dividend for the balance.
Share buy-back programmeAmbition to return CHF 45 m to shareholders
3
82
Key characteristics of the share buy-back programme:
• Trading period from 3 January 2013 to 30 April 2013
• The share buy-back will be processed via a second trading line on the SIX
• The repurchase price on the second line will be driven by the share price on the first line
• Based on a current share price, approx. 9% of the total shares outstanding could be repurchased by PubliGroupe
Share buy-back programmeTiming and conditions
3
83
Non-operating assets: real estateZurich Neumühlequai remains an important asset in our portfolio
4
Zurich | 1982 | 4'695m2
Paris | 1970 | 365m2 Delémont | 1992 | 1'045m2
Note: Location | Year of construction | Surface area
• After the divestment of 4 buildings in Lausanne and Bern, PubliGroupe holds 3 real estate assets
• The most important of these assets is the office building at Neumühlequaiin Zurich. The building is rented to a third party with a long term contract
• The Board of Directors has decided not to sell this asset for the moment
84
Non-operating assets: press participationsAssets in participations and securities in amount of CHF 68 mio.
4
Mar
keta
ble
&
non-
curr
ent
secu
ritie
s
FPH (Freie Presse Holding)• Subsidiary of the Swiss publishing house
Neue Zürcher Zeitung, combining all major press participations of the group
SNP (Société Neuchâteloise de Presse)• Part of the Hersant Group and one of the
prominent newspaper publishers in French speaking Switzerland
Südostschweiz Presse und Print AG • Subsidiary of the Südostschweiz Medien
Group
Pres
s Pa
rtic
ipat
ions
2.4
4.1
42.8
Book values (June 2012), in millions of CHF
Tamedia
Other (several positions)
Expe
cted
ca
sh fl
ows
2012
7.1
11.5
Dividends from press participations: CHF 2.6 mio. (operational cash-flow) Dividends from marketable & non-current securities: CHF 1.0 mio. (financial result, operational
cash flow)
% owned
29%
25%
20%
Note: *) Decrease in book value compared to 2011 is a result of the change to Swiss Gap FER (goodwill being offset through equity)
*
85
PubliGroupe has divested some CHF 100 m non-operating respectively non-strategic assets in 2012
For 2012 PubliGroupe expects an operating cash-flow close to zero
PubliGroupe BoD has the ambition to return CHF 45 m to shareholders. As a first step, a share buyback programme will start on 3 January 2013
PubliGroupe enjoys a solid financial situation and will have sufficient funds for financing future growth after the announced returns to shareholders
There are still important non-operating assets on the balance sheet of PubliGroupe which could be sold in the future
ConclusionSolid financial situation and return CHF 45 m to shareholders
5
86
Overall conclusionby the CEO
PART GROUP
Arndt C. GrothCEO PubliGroupe
87
Market conditions are in constant change --- print will continue to decline, digital and now especially mobile will continue to gain in importance.
PubliGroupe with broad range of assets that need to be refocused tostrengthen regional, national and international network.
Media business will continue to be primary DNA, but automation of processes necessary, focusing on connecting supply and demand.
For 2012 small operating loss and net profit of over CHF 41 m; for 2013 strong improvement at Publicitas expected against 2012 result that should allow break-even operating result and contributions at roughly the same level, or slightly higher in the case of Search & Find, for the other segments.
Ambition to return CHF 45 m to shareholders. As a first step, a share buy-back programme that will start on 3 January 2013.
Solid financial situation and sufficient funds for financing future - also after share buy-back programme. Still important non-operating assets on the balance sheet of PubliGroupe.
ConclusionPreparing the Group for the digital marketing world
88
Maximising full potential of inventory
DEMO IMPROVE DIGITAL
Improve Digital - Real Time Advertising Technology | 2012 © 89Improve Digital - Real Time Advertising Technology | 2012 ©
IMPROVE DIGITALReal Time Advertising
TechnologyLausanne, December 4th 2012
Joëlle FrijtersCEO, Co-Founder
Janneke NiessenCIO, Co-Founder
Improve Digital - Real Time Advertising Technology | 2012 © 90
SELL SIDE PLATFORM (SSP) TO BUILD PRIVATE AD EXCHANGES
FOR PUBLISHERS
Improve Digital - Real Time Advertising Technology | 2012 © 91
FORECAST: RTA TO BOOM GLOBALLY
2011 2016
52,8%USA
54,5%UK
52,8%FRANCE
62,0%GERMANY
89,6%JAPAN
N/ACHINA
Global RTA CAGR per market (Source: IDC)
Improve Digital - Real Time Advertising Technology | 2012 © 92
60+ premium
Publishers using the Improve
Digital platform
60+Specialist
In Real Time Advertising & Tech
volume
exclusivity
quality
depth of integrations
robustness
360
volume
# of buyers
quality
RTB
performance
automated trading
~86 blndata points per month for Real
Time Advertising
300+ Direct integrations and thousands of
indirect integrations
IMPROVE DIGITAL COVERS ALL THE ELEMENTS FOR SUCCESSFUL RTA
Improve Digital - Real Time Advertising Technology | 2012 © 93
Privatemarketplace
Bid C
Bid B
Bid A
Publisher X
Bid D €5.00*
€1.75*
€1.60*
€2.50*
Buyers
WebSite A
Website
Website
Website
WebSite B
TECHNOLOGY INTERMEDIATE BETWEEN PUBLISHERS & BUYER OF MEDIA
Types of buyersAgenciesDemand Side PlatformsAgency Trading DesksAdvertisers
Types of buysRTB
Revenue ShareCPM, CPC
“CREATEVALUE”
“CAPTURE VALUE“• 10-16% rev share to publishers• 5% Techfee RTB• Other products
Improve Digital - Real Time Advertising Technology | 2012 © 94
CASE: SANOMA MEDIA
ABOUT SANOMA MEDIA
• +200 WEBSITES
• + 3 BILLION VIEWS P/M
THEIR PRIVATE AD EXCHANGE
• UPON INVITATION ONLY
• +1BN AD IMPRESSIONS PER
MONTH
• 100% MONETIZATION
• MOBILE, WEB AND TEXT
“Improve Digital ensures us we can maximise the full potential of our well-established corporate name and brands.”
Martijn Eindhoven, Sr. Mkt. Technologist Sanoma Media
Improve Digital - Real Time Advertising Technology | 2012 © 95
IMPROVE DIGITAL TECHNOLOGY ASSETS
Innovations We’re ExcitedAbout Embarking on a newjourney with multiple formats VideMobile Not just remnant inventory, but premium inventory Not just non-guaranteed, reserved inventory as well
WEB
APP
MOBILE
TODAY TOMORROWFrom
Web performance
ToMulti Platformperformance branding
• +300 direct integrations on buy-side• Thousands of indirect integrations• Team of +25 developers• Server to server integrations with
key data, and ad serving partners
Platform• Adserving• Real Time Bidding• Yield Analytics• Private Ad Exhange• Data capabilties & protection• Ad quality control• Robust infrastructure
Improve Digital - Real Time Advertising Technology | 2012 © 96
IMPROVE DIGITAL MARKET SHARE
TODAY TOMORROW• +60 premium publishers
• Dominance in NL, traction in UK, FR,
DE and ES
• Offices in NL, FR, DE, UK and ES
• Platform monetising traffic from over
260 markets
• Aggressively develop other European
markets
• Agressively develop the Video market
• Coopererate with PubliGroupe daughter
companies to establish robust
competitive advantage on data and
market coverage.
• Power the Publicitas Premium
Automated Marketplace
Improve Digital - Real Time Advertising Technology | 2012 © 97
DEMO
Improve Digital - Real Time Advertising Technology | 2012 © 98
Joëlle FrijtersCEO Improve Digital+31612961046
joelle_improvejoelle frijters
THANKYOU!