2. Overview presentation order
Theme Speaker Time
Group Intro / Market Analysis / Strategic Overview A. Groth, CEO PubliGroupe 30 min.
Segments Anticipating changes in print and media
— Seeking efficiencies and automation R. Petrikowski, CFO Publicitas 20 min.
— Strengthening the digital portfolio Ch. Morgan, Head P-Digital 10 min.
Q&A PART 1
BREAK |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| ||||||||||||||||||||||||||||||||||||||||||||||||||||||| 30min.
Shaping a digital & mobile future
— Driving digital and mobile growth E. Baehler, CEO local.ch 20 min.
— Developing new businesses R. Martignoni, COO DMS 20 min.
Group Share buy-back programme & other finance A. Schmidt 20 min.
Concluding remarks A. Groth 10 min.
Q&A PART 2 .
End official part
Demo Improve Digital J. Frijters 30 min.
CEO Improve Digital
2
5. Rapid change, in particular in print, requires Group
to prepare faster for future ad market
Key advertising trends
1 Massive pressure on print The scenario we are
Long term structural pressure, especially on print expecting for
Stronger than expected decline 2012-15 ‘advertising 2020’
Majority of digital
2 Digital “wins” and impacts all sectors inventory will be traded
Digital media win through automated
platforms
RTA, mobile, social as key trends in digital
Especially premium will
Digital is setting scene also for other segments remain people
business, though with
3 Competitors move fast in complex landscape higher degree of
Value chain highly fragmented & specialised centralisation
Large players like Google covering key positions Efficiency, creativity and
Other sales houses invest in 360° marketing comprehensiveness will
capabilities and tech-based solutions win
5
6. 1 Massive pressure on print
Latest, apparently structural, loss of print ad
revenues went beyond expectations
Print ad-spend vs. GDP, Switzerland
Forecast
4.0%
2,487
-0.1% 2,369 2,406
2,294 2,299 -12.3% 550
543
527 533
2,302
Since 2008 497 516 517
Publicitas lost
467 2.5%
1.3%
455 0.1%
15% top line
479 3.8% 2.3%
print revenues
2.6%
2,001
in average yoy 2,004 -10.0%
1,915 1,803
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
6 1. GDP calculation based on production statistics GDP in CHF bn1 Ad spend print in CHF m
Source: WEMF; Stiftung Werbestatistik Schweiz; IMF; SECO; OC&C analysis
7. 1 Massive pressure on print
Recent decrease of print exceeded expectations
and appears to be accelerating
Expectation for Swiss display ad revenues in print Print outlook
print 2012 2012 vs. 2011 2013
1%
0%
-3% -3%
-2% -5%
- - Ø -8%
-6%
+1% -6% -10%
-7% -16%
Increasing -10%
Ø -10%
momentum!
“Last Investors’ “Also depending on
-16%
Day” GDP development”
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct.
7 Source: WEMF; Stiftung Werbestatistik Schweiz; SECO; IMF; OC&C analysis
8. 2 Digital “wins” and impacts all sectors
Market trends – Online double digit growth
In Europe, substantial growth expected in video and mobile
Ad Spend, EMEA, 2011 Ad Spend, EMEA, 2011-2016F
EUR€ bn1, % share per medium EUR€ bn1, % share per online medium CAGR
2011-16F
100.2 37.8
2.0 Video +34%
13.6 +13% 33.8 2,5 Mobile +32%
1.6
29.9 2,0
1.3 6.7 Classified +9%
20.5
26.3 1,6 6.2
23.2 5.7
20.5 5.2 10.1 Display +13%
30.7 4.8 9.0
4.4 8.0
7.0
6.2
5.5
15.0 16.6 Search +12%
35.3 11.9 13.4
9.6 10.7
RTV Print Online Other Total 2011 2012E 2013F 2014F 2015F 2016F
2011
Source: PwC, October 2012, DMS analysis
8 Note: 1) In 2011 Euros, converted from US$
9. 2 Digital “wins” and impacts all sectors
Digital, mobile, automation and social key trends
Mobile / small
Broadscreen RTA Social
screen
…has
Main area of
“SALES” surpassed
inventory
Premium traffic on
growth
portals in US
Big oppor -
Share of RTA … is winning
Segmented tunity e.g.
display sales market
Inventory Mid-Tail for local.ch
increasing share in
Challenge display in
Instead of
for display most
sales skills,
advertising geographies
platform and
as new
Rest technology Social
models need
skills are successful
to be found
needed on mobile
9
10. 2 Digital “wins” and impacts all sectors
Digital covers all marketing disciplines
Performance-based models highly attractive to advertisers
Marketing Targets
Awareness Interest Desire Action
Contacts
Visitors Sales
Reach
CPM CPC CPS
Cost per Mille Cost per Click Cost per Sale
Display / Brand Search Performance
Advertising Advertising Advertising
Performance Model
Cost per Action
Cost per Order
Cost per Lead
Cost per Click
CPO
CPC
CPA
CPL
10
11. 2 Digital “wins” and impacts all sectors
Right strategy mix is needed
Combination of branding + transaction leads to success
Brand Traffic
User Creatives Awareness Creation Lead
Generation Action
Banner Ads
Text Ads
Email CPM CPC CPL CPA
Contextual Ads
Keywords
11
12. 3 Competitors move fast in complex landscape
Digital ecosystems increasingly complex
Fragmentation across the entire digital display ecosystem
Ad
Exchange
ADVERTISER
AUDIENCE
Agency Demand- Supply-
Agency Trading Side Side Publisher
Desk Platform Platform
Ad
Network
12
Source: IAB; Google; Press
13. 3 Competitors move fast in complex landscape
Other ad marketers are transforming at high speed:
Video, agency services and platforms in focus
Competitive trends
Other
“Expand “Expansion of
scope to TV “Expansion of
360°cross- commercials the growth
media towards and future- “Centrali-
solutions built cross-linked, oriented sation, ad
on a broad multimedia mobile efficiency and
inventory of commu- advertising mobile”
own and nication segment”
clients’ titles” concepts”
Mobile special Ringier bundles all
Tailor-made cross- Expansion in the
advertising formats magazine ad sales
Own Products media solutions area of video
("G+J ConnectAd" ) in one unit
& Cover own and advertising
Performance- ToFo Media invests
Developments client inventory Commercialisation
oriented campaigns in studies on ad
Invest in platforms of HbbTV effectiveness,
(“optimobile”)
mobile products and
wins new 3rd party
Participating in the clients
Acquisitions Foundation of Acquisition of
ad network 8 regional German
& creative agency Adyard (Postview
Ad Audience newspaper groups
Foundations "Sugar Ray" marketer) in 2010
form alliance for
national ad sales
13 Source: Company information; press
15. PubliGroupe with a wide range of activities
Organised into three segments that operate mostly independently
Media Sales Search & Find Digital & Marketing
Services
*
Partner for media owners and Producer and seller of media
Portfolio of leading international
advertisers worldwide, using products facilitating the search for
marketing and technology service
effective advertising solutions. persons, companies, products
companies, helping brand owners
and services focusing on local
to spend marketing budgets more
markets.
effectively.
15
* Improve Digital acquisition pending COMCO approval
16. In 2012 PubliGroupe executed on Group level…
All Group issues addressed and executed
PubliGroupe execution of its strategic cornerstones
Corporate — End of double mandate of HP Rohner
Governance — Announcement made to end voting restrictions after restructuring of Publicitas,
latest by 2014
Sale real estate — 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
Change accounting — Switched accounting standard from IFRS to Swiss GAAP FER
standard — Media Sales and DMS (SVBmedia) revenue disclosed as commission earned
instead of the total billing of ad space, providing for more transparency
Dividend — 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.
16
17. … and strengthened operational assets
Restructuring Media Sales, strengthening leadership positions of
local.ch and Zanox, while investing in growth fields SSP and DSP
Segment execution of its strategic cornerstones
Media Sales — 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
Search & Find — 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)
DMS — 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*
Corporate & Others — Continued divestment of non-strategic assets
17
* Improve Digital acquisition pending COMCO approval
18. However, still huge differences between segments
S&F and DMS well positioned, refocus needed at Publicitas
Search & Find Media Sales DMS
Positioning
Strategy
Ready for 2020
18
19. PubliGroupe well represented in complex ecosystem
PubliGroupe with stakes across the entire digital display ecosystem
Digital display ecosystem and selected PubliGroupe investments
"TheMark"
Ad
Exchange
ADVERTISER
AUDIENCE
Agency Demand- Supply-
Agency Trading Side Side Publisher
Desk Platform Platform
Ad
Network
*
19 Source: IAB; Google; Press
* Improve Digital acquisition pending COMCO approval
21. Group positioning
Advertising revenue remains key monetisation driver for content owner
•It‘s not about e-commerce
Media is the DNA •But media services around media buying and selling
•Connecting Supply and Demand
Owning the end to end •Disintermediation of sales houses leads to automisation
relationship between supply •As a result need to offer self service solutions
and demand •Data is a going to be a key USP
Operating the technological •IT-platform for print ad processing
platforms for publishers, •Automated trading platform (DSP or SSP technology)
agency and advertiser partners •CRM-Tools, media-buying and -planning software and services
•Premium media cannot be fully automised
Premium media sales •Every publisher contract and each single order needs to be profitable
where appropriate •In shrinking markets outsourcing is becoming even more important
Entrepreneurial independency •Exclusive contracts will only apply if we’ll get a premium to run the business
(i.e. with excl. publisher really profitably
contracts) •Applying the arbitrage model to realise higher margins
•Huge opportunity for Publicitas International in Digital Media
Optimise •New content owners not prepared for ad sales
international network •Very few remaining competitors in premium media
21
22. PubliGroupe must manage strategic shift
In order to achieve profitable, sustainable business position
22
23. Based upon trends and priorities, focus on
following strategic themes going forward
PubliGroupe
Digital Marketing
Search and Find Media Sales Corp & Others
Services
Further develop Redefine publisher Capitalise on Leaner group
mobile & digital relationships to Zanox leadership structure
offering obtain operational in Europe Management of
Invest in autonomy Materialise on key non-strategic
transaction- Accelerate growth trends - RTA, asset
oriented fields (ie initiatives and mobile, data
online booking) growing digital Strengthening
Increase sales Further portfolio through
force efficiency harmonizing M&A
and effectiveness processes + IT
“Transformation and growth in sales and services”
23
24. Holding Structure – Status Quo
The business segments are treated differently
Holding Function Search and Find Media Sales DMS
Operations
Strategy
Finance
24
25. Holding Structure – Objective
Equal treatment of all business segments
Holding Function Search and Find Media Sales DMS
Operations
Strategy
Finance
25
26. PubliGroupe as lean holding going forward
Focus on financial, M&A and innovation functions,
strengthening operational management on business level
Board
CEO *
A.C. Groth
CFO * Head of HR *
A. Schmidt B. Schleipen
General Secr.* Head of CC
J.-D. Briod B. Werder
Head of CD *
R. Martignoni
Board Board
Media Sales Search & Find DMS
Board
Zanox
Board
* Member of PubliGroupe Executive Committee
effective Jan 1st, 2013 Other:
ID SVB
26
27. Group KPIs (on Swiss GAAP basis)
Financial objectives for Group
PubliGroupe Target Target 2015 Result 2011 *
indicator
Profitability Operating result CHF 40 - 50 m CHF 21.9 m
Earnings per share ** CHF 12 - 17 CHF 9.1
* restated, Swiss GAAP FER
** 2015: after share buy-back programme
27
28. Key immediate actions
What How
- Leaner holding, reduced FTE count
1. Holding - Refocus on key activities
- Increase speed of innovation and reinforce
corporate development on Group level
A) Strengthening management
2. Publicitas - 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
28
29. PART MEDIA SALES
Reducing costs, redefining
publisher relationships &
accelerating digital
Rüdiger Petrikowski, Chris Morgan
CFO Publicitas Head of P-Digital
29
30. Situation, mid-term objective and measures
Publicitas 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
31. Market environment 2012 Switzerland
Publicitas suffers from a strongly decreasing print market
accompanied by an insecure economic situation
Print advertising CH1 Internet advertising CH1
CHF m CHF m
-10%
2'004
1’803
Professional, +5%
specialized,
consumer, finance, 667 805 12
business press 769 Affiliate
595 10 34
29 18 Video
16
84 Mobile
101
Banner/Display
195 Classifieds
176
Daily, weekly
regional, and 1’337
Sunday papers 1’208
362 401 Search
Digital
-19% newspaper
75 61 advertising
2011 2012e 2011 2012e
1) PWC Swiss Entertainment and Media Outlook 2012–2016
32. Major effects on 2012 operating result
Savings of announced measures of CHF 10 m achieved, with
noticeable effect for 2013
ACT 2011 Net revenue Realised Opex 2012e
decline savings
0
-5
-5
~-16
-6
~-22
~-26 +10
Op. Result Non-recurring Other effects
33. Effect of initiatives in 2013
Valuable starting point for a break-even result whilst anticipating
a 8% downturn in the Swiss print market
Op. result
effect 2013
in CHF
1 Cost measures >16 m
Implemented: Personnel reduction effective beginning 2013 10 m
Implemented: Overhead and IT reduction 6m
Right-sizing to anticipate market development effective 2014
ongoing
(partly compensated by digital build up)
2 Growth initiatives 5-6 m
Digital growth in Switzerland and Europe driven by the real time
2m
advertising sell side platform
Customer and portfolio expansion in TV, OOH, digital 3-4 m
34. Organisation adapted to the market downturn
Smaller and leaner organisation in 2013
FTE Implemented leaner organisation
1.196
~1.040
1 Full year effect 2013 of a smaller
•
388
and leaner organisation
~370
31 29 2 Operational efficiency secured
•
~45 through centralisation
~25
3 Build up of digital competences
•
748 -150
FTE ~600 4 Further adaptation according to
•
market development with a shift
-20%
from print to online capabilities
Closing 2011 Beginning 2013
International Network Cinecom
Dedicated digital CH Publicitas CH
35. Strategic initiatives 2012
Leaner cost base anticipated for 2013 & new products launched
Objectives Achievements
1st PILLAR Swiss business
• Process harmonisation • Completed
• Depending on publishers
Exploit print • Centralisation of sales back-office
• Organisation implemented with
business: • Improvement of sales efficiency time delay
International
Leaner and more • Americas implemented
flexible cost • Divesture and restructuring
Transparent service levels and fair Europe stronger efforts needed
• pricing
structure Central cost
• Publisher negotiations ongoing • Completed
• Optimisation of admin services
• Implementation for Jan.'14
• Optimisation of IT
2nd PILLAR
Grow Digital
Accelerate • At least in line with the • Digital resources unified
the digital agenda • New products launched
market
& explore new • Mobile initiative started
opportunities:
Higher share of
Grow new business • Acceleration of local OOH
digital turnover and
adjacent media • Expand in adjacent business business in India
sales business • Acceleration of TV business
in Asia
36. Business challenges of representation business
A dedicated sales approach limits scalability due to asymmetric
interest between publishers and Publicitas
Title 3 Title 4
Dedicated Sales: (mono-media) (mono-media)
Title 1
Sales resources are directly (mono-media)
allocated to single titles.
Publicitas as an outsourced Title 5
sales force for print (mono-media)
Title 2
publishers (mono-media)
• Limited scalability due to
lack of operational Title 6
autonomy (mono-media)
• Low resource utilisation
• Declining relevance to
advertiser
Title 7 Title 8 Title 9 Title 10 Title 11
(mono-media) (mono-media) (mono-media) (mono-media) (mono-media)
37. Pursued business model
A portfolio sales approach allows Publicitas to benefit from
economies of scale and maximise the 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)
• Scalability
• Higher sales effectiveness
• Maximisation of advertisers’
share of wallet
38. Mid-term product and geographic mix
Growth in digital and international markets does not compensate
for a strong decline in the Swiss print business
Media Sales Total Net revenue in CHF mn
By media By geography
~145 ~145
~13% ~125 ~125
~23%
30-40% 35-40%
~87%
~77%
60-70% 60-65%
2012e 2015e 2012e 2015e
Non-print Print International Switzerland
39. International Publicitas Network
Accelerate restructuring, strengthen business and leverage
industry expertise in more than 20 countries
Montreal
Vancouver
Toronto
New York Beijing
Los Angeles
London Amsterdam
Brussels New Delhi Shanghai
Miami Frankfurt
Paris Dubai
Honolulu Munich Vienna Hong-Kong
Basel/Zurich/Geneva Mumbai
Milan Bangkok,
Madrid
Kuala Lumpur
Singapore
40. Journey to future business model
Measures initiated as strategic initiatives 2013
1st PILLAR Swiss business & Central cost
• Finalise sales efficiency
Exploit print • Reduce IT landscape complexity massively and implement
business: scalable system based on standard software
• Continue right-sizing to anticipate print market decline
Leaner and more
flexible cost
International
structure • Accelerate restructuring and leverage industry expertise
Transparent service levels and operating autonomy
• Redefine publisher relationships
2nd PILLAR
Grow Digital
Accelerate • Accelerate digital and mobile product offering to address
the digital agenda
multiple advertising segments
& explore new
opportunities:
Higher share of
Grow new business
digital turnover and
adjacent media • Accelerate development of comprehensive media portfolio
sales business
41. Publicitas’ digital and adjacent product portfolio
Advertising products are sold in Switzerland and overseas in
more than 20 countries
Advertisers Product Publishers
CH Local & SME Google, Facebook
Regional Ad4Max Geo Leading online premium publishers
CH National Performance-oriented advertisers Cost effective cross-border
Ad4Max inventory sources
Media agencies, national clients Leading Swiss print and online
AdMarket media owners
National clients Swiss online media owners
Instanz Lead
Generation
Media agencies, trading desks, Leading Swiss and international
The Mark
major clients online premium media owners
Inter- (Premium SSP)
national
Media agencies, key clients International online premium
Premium Websites media owners (worldwide)
41
42. Dive-in: Publicitas Digital - advertiser oriented services
Local 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
43. Dive-in: Publicitas Digital - advertiser oriented services
Lead 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
44. Dive-in: Publicitas Digital - advertiser oriented services
National 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 agencies
44
45. 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. PART SEARCH & FIND
Capitalizing
on new online
and mobile offerings
Edi Bähler
CEO local.ch
46
47. Search & Find
Further driving digital growth capitalising
on new online and mobile offerings
Edi Bähler
4 December 2012
48. SMEs evolving marketing and communication needs
facing increasing complexity
Pay-per-performance models
Lead
SEM generation Emerging models
(quotations…) Groupon-like
Strong growth
User generated content Measurable ROI
Editorial content CRM models
User knowledge (Direct marketing)
Vertical Booking
Traditional portals
"Search & SMEs Advertising needs
Find" and (marketing & communication) Offline content
online Online content (flyers, posters)
(website, video…)
marketing
Local media
Classified (press,
radio, outdoor)
Online Events,
Directories exhibition
Print Directories Classical media.
shows
Poor growth.
Not performance-based
Communication and offline medias
48
49. Market dynamics – there are markets with
distinct growth potential
gate24.ch
Others
search.ch
Google Couponing
-5% to -15% DeinDeal, Groupon, ..
Booking
Market Maturity
Renovero, …
+25% …
+15% Lead
Generation
Directories
+10% to
+20% Website creation & content
Online
Local.ch content
+10% to
+20%
swissfriends.ch,..
Autoscout24.ch,…
Jobscout24.ch,jobs.ch,… Classifieds
Homegate,Immoscout24,home…
Online
Printed
Search &
49 Directories
Find
50. Matchmaking dynamics – maximise value for
customers & users, monetise on services
Sales
Channels customer loyalty
Fieldsales
Inbound T.
entry
customers
Outbound T.
products advertising
Key Account
SME products transactions
Special
Sales
Self Service
Matchmaking / Conversion ➜ Value
Direct
Organic
Population
users
AdWords
Partner
Others
App-Dwnld App-Usage
Audience Matchmaking user loyalty
Traffic
50
51. Key drivers for successful matchmaking
Leader in audience Strong monetization engine
Managed audience Products
(Print, Online, Mobile) (Print, Online, Mobile)
- User experience design - Optimise
- Search engine optimisation
- Local editorial content
- User generated content - New
- Mobile
- Lead generation
Sales power & efficiency:
Brand strength – Incentive
– Role Model
– CRM
– Multichannel
Operational excellence Match-making data People and culture
IT User insights Harmonised employer conditions
Processes Deeper advertiser information Strategic personnel resource
management
Print cost structure
51
52. Uncontested #1 on mobile with
> 2m downloads
Total downloads on all platforms1
2.2
2 m downloads
2.0
2mm downloads1 1.8
[mm]
of local app on all 1.6
mobile platforms 1.4
1.2
1.0
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2011 2012
42% ahead on No. 2 Unique clients2 iOS (October 2012)
with apps in use for
iOS in October 2012 local.ch 411
Achieved exclusively
with matchmaking +42% ahead
traffic No.2 289
0 100 200 300 400 500
[k]
52 1 Source: Official platform Stores (iOS,Android,Blackberry,W7,Nokia)
2 Source: Netmetrix Mobile iOS (http://netreport.net-metrix.ch/mobile/)
53. #1 internet page of Switzerland in
terms of unique visitors
Biggest internet
pages of Unique clients1
Switzerland1 in
October 2012 3.7
3.5
Unique clients
local.ch 3,616.000
3.3
search.ch 3,497.000
20Min.ch/dt 3,110.000
[mm]
3.1
Blick Online 3,092.000
Bluewin.ch 3,057.000
2.9
Sbb.ch 3,035.000 site migration
Microsoft Ad 2,852.000 2.7
sf.tv 2,525.000 SEO
Tagesanzeiger.ch 1,675.000 2.5
NZZ Online 1,539.000 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2011 2012
local.ch No.2
53 1 Source: Netmetrix
54. New (2012) mobile & online products account
for a substantial portion of total order intake
YTD
Online Broad &
content Presence Web Plus Mobile
Successful launch
of a web product
with big potential
Mobile
First
Selective
Launch of a second Banner Couponing
successful mobile Mobile
product with big Business
potential Alert
54
55. Offer evolution towards changing user
habits and needs – buyers guide
Local Guide
Still more than 70%
of household usage
of print
Increase attractivity
with local editorial
content
Editorial Content
Cross-media offers
under one brand
Environmental
sustainability
55
56. New restaurant special guide & booking
feature launched 10/2012
Booking
local.ch "Resto
Guide"
• Finding restaurants
Localina Products
•
•
•
Online reservations
Reservation management
Customer CRM
• Find and select restaurants
• Book restaurants • Settings & analytics
October 2012 (first month live)
• ca. 1.5 [k] total reservations
• 20 bookable restaurants
56
57. Online order intake compensates decline of
print order intake
Order intake
2008 2009 2010 2011 2012 2013
E‐Media order intake C‐Media order intake SUM order intake
57
58. Conclusions
Review:
Online revenue keeps on growing with double digit and online order intake
outperforms print decline
UPDATE PUBLIGROUPE
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. PART DIGITAL & MARKETING SERVICES
Capitalising on Zanox
leadership & trends
in RTA
Renato Martignoni
COO DMS
59
60. Market trends
Four key trends that guide DMS’ strategic priorities
Continuing shift to online
1
Online advertising continues to grow at double digit rates, despite low overall
growth
Shift to mobile
2
A key driver of online growth is increasing usage and anticipated spend on mobile
devices
Shift to real-time advertising
3
New, efficient and ‘intelligent ’ RTA-based business models will gain in importance
Data-driven consolidation
4
Intermediaries in the advertising ecosystem will consolidate to maximize access
to intelligence
60 Source: DMS Analysis
61. Market trends – shift to online
Online, with display in particular, continues to grow above market rates
Ad Spend, EMEA, 2009-2016F
EUR€ bn1, % share per medium
CAGR CAGR
2009-12E 2012E-16F
+4% +5%
93 98 100 103 107 113 119 125
100%
15% 14% 14% 13% 13% 12% 12% 12% Other
4% 5% 5% 5% 5% 6% 6% Online Classifieds 2 +11% +10%
4%
5% 5% 6% 7% 8% 9% 9% 10% Online Display 2 +18% +16%
8% 9% 10% 11% 12% 12% 13% 14% Online Search 2 +15% +12%
12% 11% 11% 10% 10% 10% 9% 9% Print Magazines -1% +2%
22% 21% 20% 19% 18% 17% 16% 16% Print Newspapers -2% 0%
5% 5% 5% 5% 5% 5% 4% 4% Radio +2% +2%
29% 31% 30% 30% 30% 30% 29% 29% TV +4% +4%
2009 2010 2011 2012E 2013F 2014F 2015F 2016F
61 Source: PwC, October 2012, DMS analysis
Note: 1) In 2011 Euros, converted from US$; 2) Display includes video, and all online categories include 1/3 of mobile
62. Market trends – shift to mobile
The gap between mobile ad spend and mobile time spent is expanding
Ad Spend vs. Time Spent, USA, 2012 Mobile Ad Spend vs. Time Spent, USA, 2009-12
% share per medium % share (percentage point (pp) difference)
40% 39%
12% Mobile
Time Spent Ad Spend Time Spent
11%
Anticipated Ad Spend Trend
10%
9%
25% 8%
21% 7%
∆=10pp
6%
5%
13% ∆=7pp
12% 12% 4%
9% 9% 3%
∆=5pp
2% Mobile
3% 2% Ad Spend
2% 1%
0%
TV Online Radio Mobile Print Print 2009 2010 2011 2012
Newspapers Magazines
62 Source: eMarketer, October 2012, DMS analysis
63. Market trends – shift to real-time advertising
RTB is expected to double its share of online display transactions
RTB vs. Non-RTB Display Ad Spend, Germany, 2011-15F
US$ bn, % share per type
CAGR
2011-15F
+11%
1.7 1.8 1.9 2.2 2.5
100%
4%
8%
13% 17% 20% RTB Ad Spend +68%
96%
92%
87% 83% Non-RTB Display
80%
Ad Spend +6%
2011 2012E 2013F 2014F 2015F
63 Source: IDG, 2011, DMS analysis
64. Market trends – market consolidation
The RTB-driven ecosystem is consolidating to maximise access to data
Horizontal Consolidation
Trading Ad Sales
Agencies Desks DSP Tech SSP Tech Exchanges Networks Houses Publishers • The ‘classic’ advertising
ecosystem is highly
fragmented with insulated
unique 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 Source: DMS analysis
65. DMS strategy
Focusing on adding sustainable value to our key clients and consumers
*
Agency / RTB Trade RTB Trade RTB Trade RTB Trade
Publisher
Advertiser Desk Technology Technology Desk
…
Internal Data
Internal Data External Data, Data Management, Data Analytics Internal Data Video
Mobile
Web
KEY VALUES
KEY VALUES
Usability Intelligence Trust
“Offer the best user “Offer the most intelligent “Offer the highest standards
experience throughout data-driven pricing and in privacy, data and
the booking process” placement strategy” transaction security”
65 Source: DMS analysis
Note: *) Mediamath is an independent partner of PubliGroupe
66. DMS performance overview
Financial Recap 2009-12 in CHF m
300
Portfolio
200
Revenue*
(from 2013, pending approval)
100
49.4 50.6 52.1
0
2009 2010 2011 2012
• Zanox not fully reflected in DMS P&L
due to accounting restrictions
18
• RTB-DSP provider Spree7 launched in
Berlin in cooperation with MediaMath
Operating
12
Result*
9.7 • Acquisition of Improve Digital (85%
6 7.4 stake) is awaiting regulatory approval
2.3
0
2009 2010 2011 2012
• Namics business sold to the partners -
2012 results not fully comparable
Reported proforma
* Reported view: in 2012, Namics is included January - May. Full year included in 2009-2011.
66 Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange rate
(2012).
67. DMS performance contributors (proforma)
Zanox (47.5%) is to DMS performance
185 193
• Zanox is our largest investment with
a significant EBIT contribution
SVBmedia
Revenue*
HQ
Spree7 • SVBmedia is a profitable media
Zanox agency in the Netherlands
Q1-3 2011 Q1-3 2012
• Spree7, Berlin, launched in May
2012 is a RTA trade desk, FTE 8
9 • All units invest in future digital
6 developments
Operating
Result*
Spree7
SVBmedia
HQ
Zanox
Q1-3 2011 Q1-3 2012
67 * Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange
rate (2012).
68. Zanox
The European leading performance advertising network
Performance = Sales European Leadership
#1 position in market
#2
Engaging > 4'000 advertisers Connecting relevant publishers
70. Zanox
Opportunities and challenges
Opportunities Challenges
• Online advertising markets in Europe • Difficult macro-economic environment
still growing – driven by budgets shifting – with reduced consumer spending in
from offline to online and rapidly growing some key industries and markets (esp.
online retail sales Southern Europe)
• Online advertising continues to move • Pricing pressure growing – as
more and more towards performance- especially large advertisers demand
based models – as advertisers increase volume discounts and insource
their focus on ROI
• Performance-based alternatives to
• Synergies from zanox network gaining in affiliate marketing gaining ground – e.g.
importance – for serving large re-targeting, real time bidding
international advertisers and from a cost
perspective
70 Source: zanox analysis
71. Zanox
Zanox has a sound strategy in place
1 • Further acquiring and growing advertisers and
Network
publishers network – locally and globally
growth • Leveraging 3rd party cooperations
2 • Core affiliate platform evolution
Product
• Mobile innovation
innovation • New performance-based models
3 • Profitably growing our new countries (Brazil,
International Eastern Europe, Turkey)
expansion • Evaluating further expansion moves (organic and
M&A)
71 Source: zanox analysis
72. Spree 7
DSP start-up in partnership with leading tech provider Mediamath
Powered by: Company facts
• Start-up, founded mid 2012 with headquarters in Berlin
• Grown to 8 employees since foundation
• Oliver Busch • Exclusive relationship with Mediamath in DACH region
(Managing Director)
• 2012 focus was on business incubation;
• Alexander Thurner 2013 focus will be on gaining market traction and growth
(Director Sales DACH)
• German RTA market is expected to grow at a rate of 68%
in coming years
• 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
72
73. Improve Digital
Leading European SSP player
Company facts
• Founded in 2008 with headquarters in Amsterdam and
offices in London, Madrid, Munich and Paris;
60 employees
• Joelle Frijters (CEO)
• Proprietary technology, RTA enabled - the '360 Yield
• Janneke Niessen (CIO) Platform'
• Over 70 premium European publishers
• Billings in 2012 expected to reach CHF 20 m, more than
double compared to last year
• PubliGroupe acquires 85% of Improve Digital • Close to 100 bn ad impressions running through the
platform
• Acquisition is subject to approval by the Swiss
Comco
• Part of PubliGroupe investment to fuel growth of Rising Star 2011 Award
company and accelerate its geographical
expansion
• Publicitas will use Improve Digital technology for
its high premium market place
73
74. Conclusion
Three key points to win
Capitalise on Zanox leadership in Europe
1
Leverage innovation and efficiency investment through clients and publishers
European network
Execute consistently on key initiatives - Improve Digital, Spree7
2
Hire and retain key people to achieve consistent and timely execution
3 Embrace and focus on key trends - RTA, Mobile, Data
Drive profitable growth
74
77. Divestment results
Continuation of strategic asset management in 2012
1
• Disposal of 91% interest in Net book gain from divestments, in millions of CHF
Namics AG (including German
and US subsidiary) 60
52.4
• Disposal of 50% interest in 50
Südostschweiz Publicitas AG
40
(SOP)
39.0
30
• Disposal of four real estate
properties in August 2012 for a 20
total of CHF 85 m, resulting in 10
28.4
after tax gain of CHF 39 m. 15.5 13.4
0
In total approx. CHF 52 m net 2010 2011 2012 estimate
book gain in 2012 accounts
Namics
Divestment 37% BAZ Medien / Emphasis Video (EVE)
Südostschweiz
19.9% Edipresse Huashang Interactive
of non-core Real estate Baden / City Media Publicitas AG
assets Lausanne Real Estate St. Gallen Real Estate Bern &
Lausanne
2010 2011 2012
77
78. Divestment results
Four real estate assets were sold in August 2012
1
Lausanne
Bern
(Mon-Repos)
• 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 Lausanne Lausanne
book profit in amount of CHF 39 m. (Mousquines) (Toises)
• An important part of the proceeds
will be returned to the shareholders
of PubliGroupe, as announced in
early 2012
78
79. Financial situation:
Strong cash position despite unsatisfactory operational cash flow
2
*
79Note: *) 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
Outlook 2012 / 2013
1st half year
in millions of CHF (+) Net proceeds from real
2012
estate sale
Available cash 95.6 (-) Planned refund to
shareholders (early 2013)
Free bank facilities 35.0 (-) Bank debt repayment
Operating cash need -30.0 (+/-) Expected operational cash
flow for the 2nd half year of
zero
Financial headroom 100.6
Expected financial headroom
for 2013 remains in the range
of CHF 100 m after all
transactions
80
81. Share buy-back programme
Ambition to return CHF 45 m to shareholders
3
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 on
the volume that has been repurchased by then.
− A proposal to pay a special dividend for the balance.
81
82. Share buy-back programme
Timing and conditions
3
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
82
83. Non-operating assets: real estate
Zurich Neumühlequai remains an important asset in our portfolio
4
Zurich | 1982 | 4'695m2
• 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 Neumühlequai
in Zurich. The building is
rented to a third party
with a long term contract
• The Board of Directors
Paris | 1970 | 365m2 Delémont | 1992 | 1'045m2 has decided not to sell
this asset for the moment
83
Note: Location | Year of construction | Surface area
84. Non-operating assets: press participations
Assets in participations and securities in amount of CHF 68 mio.
4
Book values (June 2012), in millions of CHF
FPH (Freie Presse Holding)
% owned
• Subsidiary of the Swiss publishing house
Neue Zürcher Zeitung, combining all major
42.8*
Participations
press participations of the group
25%
Press
SNP (Société Neuchâteloise de Presse)
• Part of the Hersant Group and one of the 29%
prominent newspaper publishers in French 4.1
speaking Switzerland
Südostschweiz Presse und Print AG
• Subsidiary of the Südostschweiz Medien 2.4 20%
Group
Marketable &
non-current
Tamedia
securities
11.5
Other (several positions) 7.1
cash flows
Expected
Dividends from press participations: CHF 2.6 mio. (operational cash-flow)
2012
Dividends from marketable & non-current securities: CHF 1.0 mio. (financial result, operational
cash flow)
84 Note: *) Decrease in book value compared to 2011 is a result of the change to Swiss Gap FER (goodwill being
offset through equity)
85. Conclusion
Solid financial situation and return CHF 45 m to shareholders
5
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
85
87. Conclusion
Preparing the Group for the digital marketing world
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 to
strengthen 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.
87