publi groupe 2010 results presentation e

FINANCIAL RESULTS 2010FINANCIAL RESULTS 2010PubliGroupe confirms its return to profitability: net profit 2010 of CHF 42.6 million – Resumption of dividend payment42.6 million Resumption of dividend payment

1

Overview presentation order

1. Hans-Peter Rohner: Overview of 2010 figures & main developmentsCEO & Chairman of the Board

2. Andreas Schmidt: Key financials groupChief Financial Officer

3. Segment heads: Segment update (financial results & key initiatives)

Beat Röschlin: Update Media SalesBeat Röschlin: Update Media SalesHead of Media Sales

Edi Bähler: Update Search & Find CEO local chCEO local.ch

Thomas Kaiser: Update Digital & Marketing ServicesDeputy Group CEO & CEO Digital & Marketing Services

4. Hans-Peter Rohner: Conclusion & outlook 2011

2

OVERVIEW 2010 FIGURESTurnaround accomplished All segments profitableTurnaround accomplished. All segments profitable

Hans-Peter RohnerCEO & Chairman of the BoardCEO & Chairman of the Board

3

2010 group results Well positioned for the future

1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & outlook

Well positioned for the future

Positive trend of half-year results confirmed2009 2010

Sales and gross margin in CHF m

Turnaround accomplished: – Accelerated migration towards "digital company“– Media Sales profitable ahead of schedule– Financially stronger with significantly reduced debt

1'609.11'474.2

1'000

1'500

2'000

Financially stronger with significantly reduced debt and stronger investment capacity

Strong performance across all segments:– Media Sales: successful execution of new

362.1 345.3

0

500

Net sales Gross marginMedia Sales: successful execution of new business model

– Search & Find with new organisational set-up that will strengthen future profitability

– Digital & Marketing Services (DMS): now the 602009 2010

EBIT and net profit, in CHF m

g

Digital & Marketing Services (DMS): now the European leader in affiliate marketing with ZanoxGroup; Namics enhances leading position in e-business consulting in Switzerland

32.642.6

0

20

40

60

Dividend payment of CHF 6 proposed to General Meeting of 3 May 2011, pay-out ratio of 33% -2.9

-20.3-40

-20

0

EBIT Net profit

4

2010 business segment summaryMedia Sales: turnaround move towards digital company


Media Sales: turnaround, move towards digital company

EBIT, in CHF m per segmentTurnaround accomplished ahead of schedulePrint CH: New business model implemented with new contract structure; all major contracts re- EBIT 2009 EBIT 2010jnegotiated and signed; new retail B2C platform publicitas.ch, new sales strategy for media intermediationElectronic CH: turnaround in cinema business; loss of traditional TV contracts leads to launch of digital M

edia

Sal

es

31.827.730

40

DMS pro forma 2009* DMS pro forma 2010*

gbroadcasting initiatives.International: more focus on key markets/growth and excellent results in Asia, Americas back to profit/Europe with positive trend

L t i h lf i

M

8

1 8

13.414.8

10

20

reported pro forma

rch nd

CP Losses cut in half vs. previous year

Discontinued as a separate segment

Partnership with Swisscom adjusted to increase efficiency going forward

-5.7

0.5

-2.8

1.8

-10

0

Sear

& F

i efficiency going forwardNew local.ch (rebranding) with stronger online focus

Successful Zanox (performance marketing growing k t)

-28.6

-40

-30

-20

DM

S

market)Well positioned to offer professional services (i.e. full-service performance agency)Strong operational performance not reflected in IFRS

-40Media Sales

Custom Publishing

Search & Find

Digital & Marketing Services

* Pro forma EBIT = eliminating one time gain of CHF 4.0 m in 2009, PG HQ costs allocated amortization of intangible assets and interest and taxes for PG’s share to the result of Zanox group

5

g p

Status of strategic initiativesReorganisation and cost reduction largely accomplished


Reorganisation and cost reduction largely accomplished

Achieved cost savings of CHF 124.5 m over 3 years– CHF -48.5 m in Media Sales and HQ Corporate in 2010 aloneCHF 48.5 m in Media Sales and HQ Corporate in 2010 alone

Headcount reduction by 241 FTE at Media Sales and HQ Corporate (12 months)( )

Reorgani-sation and cost CHF -22m CHF -55m CHF -48.5mcost reduction

2007 2008 2009 2010

6

2007 2008 2009 2010

Level of Accomplishment

Status of strategic initiativesDivestment of non core assets mostly completed


Divestment of non-core assets mostly completed

2010 divestment of non-core assets– Real estate: Baden and Lausanne– Non-core holdings of publishing houses: BAZ, Edipresse

Debt reduced by CHF 72 m to CHF 93 m

Strong balance sheet with 47.7% equity ratio

Target: maintain investment capacity of CHF 50 m plusTarget: maintain investment capacity of CHF 50 m plus

Divestment of non-core

t

Real estateZurich

Real estate Winterthur

100% Stadt

37% BAZ Medien / 19.9% Edipresse

Real estate Baden /assets

2007 2008 2009 2010

100% Stadt-anzeiger Olten

Real estate Baden / Lausanne

7

2007 2008 2009 2010

Status of strategic initiativesContinuing investment in growth markets

Ongoing


Continuing investment in growth marketsPerformance Marketing:

– Build the leading European online affiliate advertising group together with Axel Springer– Acquisition of Buy at in March 2010 leads to European market leadershipAcquisition of Buy.at in March 2010 leads to European market leadership– Leadership with CHF 504 m sales

– Build a comprehensive offering in digital marketing on the Swiss market– Repositioning of web2com

Acquisition of Instanz in May 2010 complements the web2com Namics and Zanox– Acquisition of Instanz in May 2010 complements the web2com, Namics and Zanox performance marketing offering

Local Search Marketing: – Build the number one local search platform in Switzerland together with SwisscomBuild the number one local search platform in Switzerland together with Swisscom

– New setup of partnership with Swisscom to boost online services and to gain synergies

– Promising market entry of new national real estate online portal home.ch

Investments in growth markets

2007 2008 2009 2010

8

2007 2008 2009 2010

Ongoing


Status of strategic initiativesGrowing importance of online businesses

Online Revenues, in CHF m PG incl. participations

Online revenue consolidated in PubliGroupe numbers: +24% to CHF 140.1 m

Growing importance of online businesses

800

Participations PGOnline revenue including participations: +33% to CHF 657 mPubliGroupe expands its position as a key player in the online market in Switzerland

447493

657

500

600

700player in the online market in Switzerland and with Axel Springer (Zanox) in Western Europe

356380

517

200

300

400

500

91 113 1400

100

200

2008 2009 2010Total revenue 2010:CHF 1’906 m (online 34%)

Total revenue 2009:CHF 1’898 m (online 26%)

Total revenue 2008:CHF 2’371 m (online 19%)

9

KEY FINANCIALS GROUPWell capitalised solid cash flowWell capitalised, solid cash flow

Andreas SchmidtChi f Fi i l OffiChief Financial Officer

10

P&L GroupBack in solid black numbers


Back in solid black numbers

Change % 2010 2009CHF restatedCHF m restated

Revenue -8.4% 1'474.2 1'609.1 Gross margin -4.6% 345.3 362.1 g

Expenses -10.7% -300.5 -336.5 EBITDA 74.6% 44.8 25.6

EBIT - 32.6 -2.9 Financial result - 23.9 -3.3 Taxes 7 2 3 1Taxes - -7.2 -3.1 Minority interests -39.0% -6.7 -11.0

Net Result - 42 6 -20 3Net Result 42.6 20.3

11

Restatement for activated sales costLittle impact on results


Little impact on results2009 restated 2009 reported 19.3.2010 Restatement impact

Shareholders equity 412.8 416.8 -4.0

Personnel expenses -272.2 -289.9 17.7Depreciation -29.1 -13.0 -16.1

EBIT -2 9 -4 5 1 6EBIT 2.9 4.5 1.6Net result attributable to PG shareholders -20.3 -20.9 0.6

Cash flow from operating activities 6.3 -8.8 15.0Cash flow from investing activities -7 7 7 3 -15 0

Since the adoption of IFRS, commissions paid to the sales statements. Therefore personnel expenses are reduced by

Cash flow from investing activities -7.7 7.3 -15.0

Since the adoption of IFRS, commissions paid to the sales agents of LTV Gelbe Seiten AG for the acquisition of three-year contracts with customers (subscriber acquisition cost) were recognised as prepaid expenses and charged to the income statement at publication date. Until 2006, the sales agents were fully paid on a variable commission basis

statements. Therefore personnel expenses are reduced by the amount of commissions capitalised in the current year, which increases EBITDA, while depreciation is increased by current year depreciation of the intangible asset. As both amounts nearly offset each other, the total impact on EBIT is not significant 2009 figures have been restated accordinglyagents were fully paid on a variable commission basis.

Since 2007, compensation has also included a fixed part. Under IFRS only the variable part should be recognised as an intangible asset and not as prepaid expenses. This accounting error has been corrected in the 2010 financial

not significant. 2009 figures have been restated accordingly. The impacts on the restated total balance sheet, total equity and result are not significant.

12

Extraordinary items 2010Important gains from divestments


Important gains from divestments

CHFm

Net Result 2010 Nominal 42 6Net Result 2010 - Nominal 42.6

Divestments 28.4 Impairments -2 0Impairments -2.0 Restructuring -8.1 Others -2.3

Total non recurring elements 16.0

Net Result 2010 - Comparable 26.6

Balance of non recurring items is a net profit of CHF 16 mDivestments include participations (Edipresse Baz etc) and real estate assets (Baden and Lausanne)

p

Divestments include participations (Edipresse, Baz, etc) and real estate assets (Baden and Lausanne)Impairments: CHF 1 m in Radiotele, CHF 0.8 m in Cinecom & Media and CHF 0.2 m in BégécomRestructuring costs: CHF 4 m in Search & Find (related to Number 1 project), CHF 2.6 m in Media Sales and CHF 1.6 m in Custom Publishing

13

Net result - causes of changePerformance improved thanks to reduced expenses


-20.3NET RESULT 2009

Performance improved thanks to reduced expenses

-20.3

-14.9

5.4

17.8

One Time Events 2009

COMPARABLE 2009

Gross margin

5.4

-14.9

17.8

40.1

3.3

17.8 Gross margin

Expenses

Depreciation

17.8

40.1

3.3

10.9

6.0

3.8

Associated

Financial result

Taxes

10.9

6.0

3.8

26.6

16.0

2.8Minority interests

COMPARABLE 2010


2.8

26.6

16 0

42.6

16.0

-35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 30 35 40 45


NET RESULT 2010

CHF m

16.0

42.6

14

Cost savings at Media Sales & HQ CorporateHuge cost reductions since 2007


Huge cost reductions since 2007

350

CHF m Decisive cost reduction efforts in Media Sales and

CHF -124.5 m

300

350 efforts in Media Sales and Corporate HQ since mid-2008

Expenses have decreased

321 301

245

200

250Expenses have decreased by CHF 124.5 m or 38.7% since 2007197

245

100

150

-

50

-2007 2008 2009 2010

Media Sales HQ Corporate

15


Number of employeesWorkforce reduced by 24% during the crisis

3'200

FTE-743 FTE

Workforce reduced by 24% during the crisis

3'000

3 200

2'800

Significant and constant FTE decrease since September 2008

3'0933'0032'600

This represents a 743 FTE or 24% decrease since September 2008

2'798

2'618

2'377

2'400

2'377 2'349

2'2002008.09 2008.12 2009.06 2009.12 2010.06 2010.12

16

Net financial resultReduced interest expenses and gains on Edipresse and Tamedia


Reduced interest expenses and gains on Edipresse and Tamedia

CHF m 2010 2009

Result on loans and receivables 1.4 1.8

Result on marketable securities 7.7 4.2

Result on available-for-sale securities 17.0 -3.4

Result on uncommitted net assets of employer's foundations - 1.4

Changes in fair value of contingent consideration 1.6 -

Interest expenses -3.7 -6.3

Net currency exchange differences -0.1 -1.0

Total 23.9 -3.3

17

Cash flow statementOperational and investment cash flows allow for big debt reduction


Operational and investment cash flows allow for big debt reduction

CHF m Change 2010 2009

Cash and cash equivalents as of 1 January - 28.7% 58.0 81.4

Cash flows from operating activities 29 6 6 3Cash flows from operating activities 29.6 6.3

Cash flows from investing activities 97.0 (7.7)

Cash flows from financing activities (78.7) (22.1)

Effect of exchange rates (3.3) 0.1

Cash and cash equivalents as of 31 December + 77.0% 102.6 58.0

18

Group balance sheet Solid balance sheet and solid net liquidity


Solid balance sheet and solid net liquidity

CHF m % 2010 2009C t t 16 9% 416 7 501 4Current assets -16.9% 416.7 501.4 Non-current assets -1.2% 444.2 449.5 Total assets -9.5% 860.9 950.9 Current liabilities 20 1% 297 9 372 9Current liabilities -20.1% 297.9 372.9 Non-current liabilities -4.9% 118.8 124.9 Equity, shareholders of PubliGroupe Ltd. -0.5% 410.8 412.8 Non-controlling interests -17.3% 33.4 40.3 Total liabilities and equity -9.5% 860.9 950.9

Equity in % of assets 47.7% 43.4%

Net liquidity 118 59Net liquidity 118 59 Bank debt 93 165

The group's balance sheet remains solidReduction of total assets by CHF 90 m CHF 32 m reduction owing to negative exchange rate impact; slight reduction in shareholder equity

19

MEDIA SALESTurnaround accomplished ahead of planTurnaround accomplished ahead of plan

Beat Röschlin Head of Media SalesHead of Media Sales

20

Media SalesTurnaround accomplished ahead of plan


1'292 31'500

Turnaround accomplished ahead of plan

Sales, in CHF mBreak-even at the operational level in 2010 with an EBITDA of CHF 6.5 m and EBIT of CHF 0.5 m

1 292.31'173.8

1'000

End of exclusive cooperation agreements, especially at Edipresse, led to 14.3% reduction in volume. On a like-for-like basis, reduction only 1.9%, in line with general market trend

0

500

2009 2010

gImproved results for electronic media – especially cinema advertising Strong recovery of international markets (+1.4%), which was led by Asia (+16 1%) and America

199 4240 2009 2010

Gross margin and EBIT, in CHF m

which was led by Asia (+16.1%) and America (+12.8%), and the turnaround in press advertising in SwitzerlandFar-reaching reorganisation, which brought total cost savings of CHF 116 m and a 677 FTE 199.4 186.2

80120160200

cost savings of CHF 116 m and a 677 FTE reduction in headcount between 2007 and 2010, is now completePartnerships renewed with all large Swiss

bli h th b i f b i d l

-28.6

0.5

-400

40

Gross Margin EBIT

publishers on the basis of new business model.Media Sales targets to outperform the market and increase its profitability in future

21

Media SalesNew contracts signed with all major Swiss media


New contracts signed with all major Swiss media New contracts based on new service offerings and a transaction-oriented pricing model, leading to a complete media portfolio

P Commission (CHF)

N d l

Old model

New model

Ad priceAd price (CHF)

Transaction-based pricing model with minimum commission

22

Media SalesLaunch of new digital B2C retail platforms for ad booking


Launch of new digital B2C retail platforms for ad booking

State-of-the-art, self-service booking platform for private and SME customersC h i li d i t d tComprehensive online and print product portfolioMarket launch in July 2010High growth rates on all measures: visits, g g ,number of orders, revenue, value per orderMarketing ongoing in order to increase brand recognition and positioning

23

Media SalesLaunch of B2B platform for complex campaign management


Launch of B2B platform for complex campaign management

Integrated campaign management, g p g g ,covering the whole advertisement value chain from planning to reportingTailored to the needs of large accounts and media agenciesand media agenciesReplacing several stand-alone tools with a new and comprehensive platformUnparalleled solution and a clear USP in

hi hl titi k ta highly competitive market

24

Media SalesStrong international online revenue growth


CHF

Strong international online revenue growth

Accelerated growth rates in international operations20

CHF m

2009 2010

+37%

New dedicated transversal digital unit to develop and implement

10.7

14.7

9.010

15

+10%+30%

digital products5.9

6.96.5

5

10

0

Europe Asia Americas

25

SEARCH & FINDStrong increase in online revenueStrong increase in online revenue

Edi BählerCEO local.ch

26

Search & Find -Investments undertaking for future

1. Overview 2010 I 2. Key financials I 3. Segment update I 4. Conclusion & Outlook

Investments undertaking for future

160

Sales, in CHF mOnline services grow by 24%, accounting for 33% of advertising revenue

130.8 136.8

80100120140160

Print products in CH decline by -10%

Segment revenue grows by 4.6%

0204060

2009 2010

Segment gross margin declines -2.9% to CHF 98 m

EBIT declines by CHF -4.3 m to CHF 27.7 m, i fl d b th l h f d t

101 0 98 0120

Gross Margin and EBIT, in CHF m

influenced by the launch of new products

Launch of national real estate search portal : www.home.ch

101.0

31.8

98.0

27.7406080

1002009 2010Profitability to increase in the future with new setup

of the partnership with Swisscom

Acceleration of development in online services +

02040

Gross Margin EBIT

cost- & growth-synergies

27

Search & Find -Strong increase of online revenue


Strong increase of online revenue

Forecast of advertising expenditures in professional directories CH: CHF m1) 2010-2014F CAGRdirectories CH: CHF m ), 2010-2014F CAGR

2010-2014144 161142 150 174 +4,8% p.a

Increased online revenue from CHF

+27,1% p.a.

23% 29% 35% 43% 49%

Digital 43.5 m to CHF 53.8 m

Achieved #2 position 2)

-5 6% p a

77% 71% 65% 57% 51%

Print

after Google maps2)

Uncontested #1 in Mobile search & find5,6% p.a.51%

2011 20132010 2012 2014

ob e sea c & d

1) Original data given in USDSource: PWC, OC&C analysis

2) Ni l / N t ti

28

2) Nielsen / Netrating

Search & Find –Strongly developed broad screen & mobile


Strongly developed broad screen & mobile

Significantly increased broad screen revenue by 24% 53.860

Online revenue (local.ch + home.ch)CHF mrevenue by 24%

Online orders intake exceeds print

Achieved and successfully defended

43.553.8

0204060CHF m

+24%

2009 2010Achieved and successfully defended #2 position after Google maps(1)

Uncontested #1 in Mobile search & find(available on iOS Android Blackberry W7)

2009 2010

4 Mio.

3 Mio.

Average Unique Users 2010

(available on iOS, Android, Blackberry,W7)

#4 of most downloaded apps of all times on iPhone/iPad (600k”+” downloads)

2 Mio.

1 Mio.

29 (1) Nielsen / Netratings

Search & Find –Synergy and Transition


CONCENTRATE individual brand value

Synergy and Transition

SwisscomCONCENTRATE individual brand value

into

LTV Y ll P

Directories

local.ch

Streamline Organization − One Management Team (Exec Board)

R t t E2E

LTV Yellow Pages

− Restructure E2E processes − Consolidate IT-Systems − Remove redundant capacity in admin

Org chart local.chOrg Chart local.chRough no. of actual headcount (not FTE)

CEO

CFOAssistant / Head of Back Office

Current organisation

1 1

Junior Project Manager 1 Senior Project Manager / Head of Recruiting 1

Engineering 19 Product Management 10Operations Marketing Finance and ControllingIT & Business Engineering

Org chart LTVOrg Chart LTVRough no. of actual headcount (not FTE)

CEO


Project Management and

Business Development1

Content Management 1 Communication 3

Product Management Print 3

Assistant 1

LogisticsSales HR CEO

Increase sales impact & efficiency− Field Sales− Telesales

18© local.ch 2010

1. Positions are currently vacant

Project Management Operations 3

System Engineering and Administration 3

Marketing1 1

Communication1 1

Quelle: local.ch; OC&C analysis

2nd level online customer care exists as a non formal unit (c. 2 person)

19© local.ch 2010

2Hauptbuchhaltung

3Kreditoren / Debitoren

1Controlling and Projects

2Internal Tasks

15Application Engineering

12Business Engineering

6Network Engineering

2PMO and Controlling

2Adserving

5Media Prod. –“Book Paging”

Assistant 1

15Media Prod. –“Ad manufacturing”

Field Sales 320

22Dispo and AVOR (Arbeits-vorbereitung)

Tele Sales 7

13Customer Care

Sales Support 9

1Trafficer

Sales Controll ing 1

2Reception

2Projects & HR-develop-ment

3Wage Accounting / Admin

2Recruiting

Media Production

Quelle: LTV HR department; OC&C analysis

IT

1IT architect

8Application Management

5Order Management IT

Sales & Marketing

63Tele Sales

15Corporate Sales and Training

3Campaign Monitoring and Sales Steering

Org chart Swisscom DirectoriesOrg Chart Swisscom DirectoriesRough no. of actual headcount (not FTE)

CEO

Communication


1 HR 3

ContentProducts

28Data ManagementProd. Management Directory Media 3

6Content ManagementProd. ManagementContact Mgmt Service 2

11ResidentialPrint Production 5

Finance

2Controlling

4Financial Accounts

3Purchasing and Logistic

Product Management

OperationsMarketing

Org chart home.chOrg Chart home.chRough no. of actual headcount (not FTE)

CEO


1

Sales 4 3 5

CEO

Sales & Marketing

ClassicalMedia

Electronic Media

Data & Processes

Information Technology

HR

Finance

Com

Telesales − Key Account 20

© local.ch 2010

14Development IT

3PC-Support

10Server Operation

11Directory System

Operation Management

Sales Steering

3Promotion Management

6Online Services (ONS)

1Future ServicesDevelopment & Research 1

KAM 3

5Delivery IT

3Management Support8Business Customer

Care (BCS)

10After Sales

Special Services Test Management IT 10

1Housing

Quelle: SD HR department; OC&C analysis21

© local.ch 2010

Quelle: Home.ch; OC&C analysis

30

Search & Find -Further boosting revenue


Further boosting revenue

Leverage existing customer potentialReduce print revenue erosion against the

k t t d f 10%market trend of -10% p.a.

Online: revamp existing products improve inventory managementimprove inventory managementlaunch new products: - 360°

New Broad screen design

L d l d d A f d

Improved user experience by simplification

Leverage downloaded App for ads products: - Mobile First

V ti l /Cl ifi dVerticals/Classifieds: Leverage synergies within PubliGroupe (Publicitas)

31

DIGITAL & MARKETING SERVICESStrong growth in Online Performance MarketingStrong growth in Online Performance Marketing and related professional services

Thomas KaiserDeputy Group CEO & CEO Digital & Marketing Services

32

Digital & Marketing Services Strong operational performance


Digital & Marketing Services continued to expand "online performance marketing" activities with two

DMS Sales, in CHF m

175 SVB

Strong operational performance

162.8146

-9.9%

acquisitions Buy.at (UK) and Instanz (CH)

The Zanox group is the #1 European Affiliate Network thanks to continuous growth and to the

116.4 95.975

100125150 Digital CH

146.7

successful integration of the Affiliate Window/Buy.at Network (UK). Sales reached CHF 504 m

DMS sales declined by -9.9% (-3.6% without

46.4 50.80

2550

2009 2010Note: Zanox Group not included

currency impact) due to weaker billings in the Dutch market (SVB Media)

Gross profit +3% was supported by expansion at

DMS gross margin and EBIT, in CHF m

50.7 52.350

60 20092010

p

p pp y pNamics and improved margins at SVBmedia

Pro-forma EBIT growth + 11% (+22% without currency impact) 10

20

30

40

+ 11 % pro forma13.4 14.8

DMS pro Forma EBIT*

y p )

Gross Margin EBIT0

10vs. -77% reported

33

Digital & Marketing ServicesZanox Group achieves market leadership position in Europe


Zanox Group achieves market leadership position in Europe

Revenue € 368m Consistent growth in key markets and successful post-merger integrations in UK have made the

+57% vs. 2009

EBITDA € 21 8m

Zanox Group #1 Affiliate Network in Europe

Clear leadership in the UK Market following successful integration of Buy at and Affiliate Window EBITDA € 21.8m

+12.8% vs. 2009successful integration of Buy.at and Affiliate Window (March 2010)

Transition to a new international and experiencedTransition to a new international and experienced management team (P. Justus CEO, D. Keller CTO, C. Kleinsorge CSO) Zanox Group vs.

other CPA/Affiliate Networks

#1Large operational investment in 2010-2011 to accelerate growth and innovation

#1

#1

#1

#2

#2

34

Digital & Marketing ServicesCapitalising on market leadership position in Europe


Capitalising on market leadership position in Europe

“straight to performance”

O ti i tt ti k t (I t tOperating in an attractive market (Internet Advertising Marketing in Western Europe expected to grow at 10.8% CAGR 2010-2014)

Advertisers continue to shift marketing budgets intoAdvertisers continue to shift marketing budgets into high transparency, high performance channels

Zanox Group well positioned as the leading European Performance Advertising Network p ggenerating leads and sales

Clear growth strategy:− Extend network reach, incl. Social NetworksExtend network reach, incl. Social Networks

und Mobile− Invest in scalable IT platform, develop first

fully transparent marketplace for Advertisers and Publishersand Publishers

− International expansion continues (organic and via acquisitions)

35

Digital & Marketing ServicesExtend scope of professional services (starting in Switzerland)


Extend scope of professional services (starting in Switzerland)

“Attract - Interact - Transact”

I i i t f d ti “ d” di

Focus areas 2011:

Increasing importance of advertiser-“owned” media channels, i.e. online-shops, social commerce on Facebook, blogs etc.

Strong position of Namics as a full-service id f i b d t d l th i li

E-Commerce projects

Online communicationprovider for premium brands to develop their online presence and online communications strategy

Brands: measuring the impact of marketing efforts across all customer touchpoints (360°touchpoint Integrated campaign across all customer touchpoints (360 touchpoint view)

web2com to focus on integrated campaign planning and management, servicing large accounts and their agencies in CH

g p gmanagement

360° touchpoint view

and their agencies in CH

Growing complexity of performance-oriented online marketing channels, tracking and reporting requirements, privacy issues

Online promotionq , p yINSTANZ specialises in generating high quality

online leads, helping brands convert them into valuable clients and winning back abandoners

Conversion

Targeted remarketing

36

Digital & Marketing ServicesTechnology and professional services driven businesses


Technology and professional services-driven businesses

Technology-

Technology-oriented performance marketing models with high scalabilityTechnology-

oriented 1) Key European markets penetrated - e.g. Zanox Group is market leader in in Germany and UK

Professional services-

Namics

1)Professional services-oriented business models benefit from scope

E l b ioriented Examples: e-business concept, search engine marketing, lead management etc.

Demand-side (advertiser-oriented)

Supply-side (publisher-oriented)

1) Z G b idi i t Di it l Wi d i th h ldi f Affili t Wi d d b t

37

1) Zanox Group subsidiaries; note: Digital Window is the holding company for Affiliate Window and buy.at

CONCLUSIONConclusion & outlook 2011Conclusion & outlook 2011

Hans-Peter RohnerCEO & Chairman of the BoardCEO & Chairman of the Board

38


Conclusion & outlookOperationally largely improved solidly financed well positioned

Media Sales achieves turnaround ahead of schedule; further improvements anticipated for 2011

Operationally largely improved, solidly financed, well positioned

Search & Find well positioned in local advertisement growth market; profitability to increase in 2011

DMS should see better IFRS results in 2011, capitalising on continuing strong operational performanceGenerally positive ad market environment

PubliGroupe 2011: more compact, more financially solid d f ll i i d i i k

Expectation of double-digit growth in the operating result

and more successfully positioned in a growing market

Board of Directors proposes a dividend payment of CHF 6

39

BACKUP SLIDES

40

Comparable expenses by segment Backup

CHF Mio % 2010 2009Search & Find 8.5% -61.6 -56.8

Media Sales -20.6% -177.7 -223.8

Custom Publishing 21 7% 9 5 12 2Custom Publishing -21.7% -9.5 -12.2

Digital & Marketing Services 8.5% -49.9 -46.0

Corporate & Others -51.2% -15.8 -32.4

Comparable expenses -11.6% -304.3 -344.4Non recurring elements -52.3% 3.8 7.9

CHF 40.1 m or 13.8% overall expenses reduction on comparable basis

Total expenses -10.7% -300.5 -336.4

CHF 40.1 m or 13.8% overall expenses reduction on comparable basis

41

Consolidated income statement Backup


Revenue - 8 4% 1'474 2 1'609 1Revenue 8.4% 1 474.2 1 609.1

Purchases - 10.1% (1'056.6) (1'175.2)

Sales reductions + 0.7% (72.3) (71.8)

Gross margin - 4.6% 345.3 362.1P l 11 4% (241 2) (272 2)Personnel expenses - 11.4% (241.2) (272.2)

General and administrative expenses - 12.4% (80.3) (91.7)

Other income and expenses - 23.4% 21.0 27.4

EBITDA + 75.0% 44.8 25.6Depreciation and amortisation - 10.3% (26.1) (29.1)

Impairment loss - (2.0) (8.2)

Share in result of associates - 15.9 8.8

Operating result (EBIT) - 32.6 (2.9)Financial result 23.9 (3.3)

Result before income tax - 56.5 (6.2)Income tax expense - (7.2) (3.1)

Result - 49.3 (9.3)Result 49.3 (9.3)

Result attributable to:

- Non-controlling interests - 39.1% 6.7 11.0

- Shareholders of PubliGroupe Ltd - 42.6 (20.3)

42

Consolidated balance sheet Backup

Assets

as of 31 December

as of 31 December


Cash and cash equivalents + 76.9% 102.6 58.0

Marketable and available-for-sale securities - 76.7% 15.3 65.8

Receivables, accruals and taxes receivables - 15.2% 298.8 352.3

Assets held for sale - 25.3Assets held for sale 25.3

Current assets - 16.9% 416.7 501.4Land and buildings - 8.9% 75.6 83.0

Other tangible and intangible assets - 6.9% 72.9 78.3

Investments in associates 9 0% 232 7 255 8Investments in associates - 9.0% 232.7 255.8

Actifs financiers et impôts différés + 94.4% 63.0 32.4

Non-current assets - 1.2% 444.2 449.5

Total assets - 9.5% 860.9 950.9

43

Consolidated balance sheet Backup

Liabilities and equity

as of 31 December

as of 31 December


Short-term debts - 100.0% - 65.0

Payables, accruals and taxes payables - 2.6% 289.7 297.4

Long and short term provisions, deferred taxes - 5.6% 30.4 32.2

Long-term debts - 6.4% 96.6 103.2Long term debts 6.4% 96.6 103.2

Total liabilities - 16.3% 416.7 497.8Share capital - 2.5 2.5

Treasury shares - 1.1% (52.6) (53.2)

Reserves 0 6% 460 9 463 5Reserves - 0.6% 460.9 463.5

Equity, shareholders of PubliGroupe Ltd - 0.5% 410.8 412.8Non-controlling interests - 17.1% 33.4 40.3

Total equity - 2.0% 444.2 453.1Total liabilities and equity - 9.5% 860.9 950.9

44

Cash flow from operating activities Backup

CHF m 2010 2009

Result 49.3 (9.3)

Adjustments for non-cash items (14.1) 24.8

Dividends paid to non-controlling interests by Group companies (9.1) (46.7)

Dividends received 15 0 66 5Dividends received 15.0 66.5

Interest received 1.4 1.6

Interest paid (4.2) (5.8)

Taxes paid (8.3) (14.5)

Use of provisions (7.2) (5.0)

Working capital changes 6.8 (5.3)

Cash flows from operating activities 29.6 6.3

45

Cash flow from investing activities Backup

CHF m 2010 2009

Acquisitions of tangible assets (3.6) (8.9)

Disposals of tangible assets 24.1 17.5

Acquisitions of intangible assets (14.3) (15.8)

Disposals of marketable securities 4 4 0 2Disposals of marketable securities 4.4 0.2

Acquisitions of subsidiaries, net of cash acquired (3.4) (4.8)

Acquisitions of associates (2.0) (15.8)

Disposals of subsidiaries, net of cash disposed of 0.1 6.7

Disposals of associates 22.7 0.1

Investments in financial assets (7.0) (0.8)

Divestments of financial assets 76.6 14.5

Taxes paid (0.6) (0.6)

Cash flows from investing activities 97.0 (7.7)

46

Cash flow from financing activities Backup

CHF m 2010 2009

Increase /(decrease) in bank debts (65.0) (120.0)

Increase in long-term debt - 100.0

Decrease in long-term debt (7.0) -

Capital contribution from non controlling interests 0 1Capital contribution from non-controlling interests 0.1 -

Purchase of treasury shares (1.5) -

Sale of treasury shares (Share-based payments) 0.2 0.6

Acquisition of non-controlling interests (5.6) -

Increase in additional paid-in capital 0.1 0.1

Dividend paid to shareholders of PubliGroupe Ltd - (2.8)

Cash flows from financing activities (78.7) (22.1)

47

publi groupe 2010 results presentation e

Investor Relations

ceo digital

online performance

professional

gross margin

term debt

search amp

media sales

term debts