german equity forum 2011 tomorrow focus ag€¦ · internat. peer: eharmony,meetic beneficiary of...

Stefan Winners, CEODirk Schmelzer, CFO

German Equity Forum 2011TOMORROW FOCUS AG

21 November 2011

63.6%

3%

33.4% =

€ 61.6 m.

Burda Digital GmbHManagement Board & Supervisory BoardFreefloat

Shareholdings Management BoardStefan WinnersCEObefore that: int. al. Bertelsmann Group

Dirk SchmelzerCFObefore that: Telefónica Group

Christoph SchuhMember of the Management Boardbefore that: Tomorrow Internet AG

Revenue and EBITDA 2005 - 2010In EUR million / CAGR

TOMORROW FOCUS AG - one of Germany’s leading listed internet groups

Key facts Headquarters: Munich, Germany

Employees: 559 (FTE)

Share capital: EUR 53,012,390

Admitted to Prime Standard: ‚TFA‘; ISIN DE0005495239

Share price 52wk high/low: EUR 5.37/ EUR 3.05

Share price 16 November 2011: 3.48 €

Market capitalisation: EUR 184.5 million

53.365.6 74.9 77.1

92.2

128.2

020406080

100120140160

2005 2006 2007 2008 2009Revenue

2010

2.6

7.6

11.2 9.6

12.6

18.2

0

5

10

15

20

2005 2006 2007 2008 2009

EBITDA

2010

German Equity Forum | S. Winners & D. Schmelzer 21 November 2011

Transactions


Hotel rating portal- & online travel agency

Revenue stream

Market position

Competitors

Prospects

Transactions segment

Physician rating portalPremium online dating portal

Commission from bookings ofpackage holidays in Germany, Austria and Switzerland; CPC in France

#1 in Germany, #1 in Poland

Expedia, Tripadvisor, UnisterGroup

European roll-out ofHolidayCheck business modell:Poland and France on track

Subscription revenue frommembership fees

#1 in Germany

Parship, eDarling;Internat. peer: eHarmony,Meetic

Beneficiary of marketconsolidation

Subscription revenue fromphysician premium membershipfees

#1 in Germany

Gelbe Seiten, Google Places

Beneficiary of shift from offline towards online


Market overviewPackage holidays in Germany

Market driversShare of online travel market in Germany 2010

Market trendPackage holidays in Germany

Total bookings 2010 Germany:EUR 12.0 billion , of whichEUR 2.4 billion via online bookings.

Market share of HolidayCheck in Germany: approx. 35% of packageholidays booked online.

German package holiday market set toincrease by 3.5% p.a. up to 2014.

Above-average 15% growth in online market for package holidays

Growth driven by ongoing shift fromoffline to online booking of packageholidays.

Online booking in markets such asPoland several years behindGermany, therefore greater potential

HolidayCheck comfortably placed within attractive market

Offline

Package holidays 2014

13.7

4.1

Shift offline-online

1.4

Market growth 3.5% p.a.

0.3

Package holidays 2010

12.0

2.4Packageholidays

Expectedshift from20% to 30%

CAGR~3.5%

Source: PhoCus Wright Inc., McKinsey

German Equity Forum | S. Winners & D. Schmelzer

20%

38%

41%

75%

Package Holiday

Car Rental Only

Flight Only

Accomodation Only

21 November 2011

Source: PhoCus Wright Inc., McKinsey

70%

10%

20%

77

42

90

11

050

100150200250

DACHDating agency Adult datingMatchmaking Agency Other

Market overview*Dating and matchmaking in DACH 2010

Market driversOnline matchmaking

Market share* Premium online matchmaking in Germany

Market volume of online matchmakingportals in DACH aroundEUR 90 million in 2010.

Three players dominate the market

ElitePartner is market leader in GER according to own estimation

Fierce competition between the Top 3

Market growth in single-digit rangeexpected

Ongoing shift from offline to online matchmaking

Online matchmaking now widelyviewed as positive.

ElitePartner is market leader in Matchmaking sector

26%

31%

22%

21%

Parship ElitePartner

eDarling Others

2011


*own estimation *own estimation

21 November 2011

2006

Market overviewNumber of physicians in Germany

Market driversOnline physician rating portals

Market shareAmount spent by physicians on advertising(offline and online in GER)

Currently 250,000 authorisedphysicians in around150,000 medicalpractices in Germany; averagemarketing spendings EUR 1,800

The amount spent by physician on advertising in GER is estimated at EUR 250 – 300 mill. p.a., of which over 85% is still printed advertisement

Only approx.15% of advertising isbased online, even though over 60% ofpysician searches are conducted online

Market leader jameda has a share of20% of all online physician searches in GER

Total market for physician marketing(offline & online) set to grow by 8% in 2011, compared to very strong aboveaverage growth in the online segment; tripling is expected by 2015

Ongoing shift of physician searchesfrom offline to online and thereforeincreasing willingness of physicians topurchase a jameda subscription

jameda is market leader among online physician rating portals

250,000

Physicians


21 November 2011German Equity Forum | S. Winners & D. Schmelzer

9.8 11.823.2

18.2 9.1

13.5

0

10

20

30

40

TV InternetElitePartner Parship eDarling

4.6

24.111.4 13.5

5

20.80.2

13.6

1.6 2.1

0.4

0.4

2.60

10

20

30

40

TV Internet Radio

Reisen.de Expedia

Unister Group

HolidayC. AIDU Travel24 Trivago

Mediasplit German Online Travel Agencies 1-8/11

Mediasplit German Matchmaking Agencies 1-9/11In EUR million; gross spendings; source: Nielsen

In EUR million; gross spendings; source: Nielsen

Impressive marketing battle, but HolidayCheck andElitePartner stay on #1 position with stable market shares

35.1% 35.7%

0%

10%

20%

30%

40%

50%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Market share HolidayCheck among Top 6 German OTA‘s 1-10/11In percent; source: Traveltainment

30% 31%

30% 26%

18% 22%

22% 21%

0%

20%

40%

60%

80%

100%

Jan Oct

Market share ElitePartner among German Matchmakers 1-10/11In percent of revenues; source: own estimation

ElitePartner

Parship

eDarling

Others

Transactions segment delivers further growth – increasedinvestments in HC internationalisation with effects on EBITDA

TransactionsHolidayCheck, ElitePartner, jameda**Revenue and EBITDA 2008-2010 In EUR million

51.164.5

85.5

14.9 17.2 23.7

0

20

40

60

80

100

2008 2009 2010Revenue EBITDA

*adjusted for revenue and earnings of Playboy Deutschland Publishing GmbH (sold in November 2010); **´jameda from 2011, PDP in 2010

Transactions segment: Strong growth Segment with highest revenue, earnings and growth CAGR 2011 – 2013: 5 – 25% of revenue Largely stable business model

Current development: ElitePartner gains market share in highly

competitive market; #1 in Germany HolidayCheck: revenue growth above market

average; Strong #1 position Early success at HolidayCheck International:

#1 in Poland; Strong growth in visits in France Investments in HC internationalisation increased by

EUR 3.3 million

Revenue and EBITDA Q1-3 2010 and Q1-3 2011 In EUR million


57.1*

16.8

69.1

15.3

0

20

40

60

80

Q1-3 2010 Q1-3 2011

+ 21.7%

- 8.9%

21 November 2011

Advertising


The Advertising segment

Premium online ad network News portal

Commission income frommarketing of online advertising

#1 in Germany

InteractiveMedia, SevenOneMedia, IP Deutschland

Online advertising

#2 in Germany

Spiegel Online, Welt Online, Sueddeutsche.de

Revenue stream

Market position

Competitors


Online advertising

#6 in Germany

Finanzen.net, OnVista, WallstreetOnline

21 November 2011

Stock exchange portal

25.42

26.49

26.6

30.49

31.43

0 20 40

United Internet Media

SevenOne Media

IP Deutschland

InteractiveMedia

TOMORROW FOCUS Media

Market overviewOVK advertising statistics 2008 - 2011

Market trendAdvertising spendings in Germany according to Nielsen

Market shareAGOF reach online ad networks in Germany 07/11

Online advertising has grownconsistently for years.

Traditional display advertising showsabove-average growth compared tosearch term marketing and affiliatemarketing.

TOMORROW FOCUS Media reachesover 31 million Germans; thisrepresents 62% of all online users in Germany.

TFM has continuously increased itsshare of Germany‘s online ad networks.

Ongoing shift of the advertising budgetaway from traditional forms ofadvertising in favour of online advertising.

Online advertising is steadily gainingimportance.

TFM is Germany‘s biggest online ad network

1923 2326 31513781+20%

1476 16241867

2076+11%

268308

339

377+10%

01000200030004000500060007000

2008 2009 2010 2011eOnline advertisingSearch term marketingAffiliate networks

In EUR million In million unique users per month

00,5

11,5

22,5

33,5

4

Television Daily newpapersPeriodicals Online advertising

CAGR

4.4%

-0.4%-3.0%27.7%


In EUR billion

21 November 2011

Revenue and EBITDA Q1-3 2010 and Q1-3 2011In EUR million

Advertising segment delivers strong growth in Q1-3 2011*AdvertisingTOMORROW FOCUS Media, FOCUS Online, Finanzen100

19.3 19.8

31.9

-2.4 -1.1 -1.0

-10

0

10

20

30

40

2008 2009 2010

Revenue EBITDA

19.1

-2.0

24.1

0.9

-4048

1216202428

Q1-3 2010 Q1-3 2011

+ 26.7%

Advertising segment: Strong market growth in Q1-3 2011 Online marketing is steadily gaining market

share

CAGR 2011-2013: 5 - 25% of revenue

Currently strong growth, but reliant on theeconomic situation

Current developments: Strong growth of the premium marketer

TOMORROW FOCUS Media Positive segment EBITDA in Q1-3 2011;

EBIT slightly negative

Revenue and EBITDA 2008-2010In EUR million


x3

*adjusted for revenue of August and September 2010 of AdJug Group; earnings of August andSeptember 2010 of AdJug are at equity; AdJug majority was sold in August 2011

21 November 2011

Technologies


Revenue and EBITDA 2008 - 2010In EUR million

Renewed growth in Technology segmentfor Q1-3 2011 – EBITDA above forecast

TechnologiesTFT, Cellular

6.77.9

10.8

1.6 1.7 1.30

5

10

15

2008 2009 2010Revenue EBITDA

7.1

0.5

9.1

0.90

10

Q1-3 2010 Q1-3 2011

Revenue and EBITDA Q1-3 2010 and Q1-3 2011 In EUR million

+ 29.5%

+79.8%

Technology segment: strong growth at Cellular Strategic segment with technology and mobile

expertise; enabling role for transactions andadvertising segment

CAGR 2011-2013: 5 - 10% of revenue

Next steps: expansion of external business; improvement in profitability

Current development: Cellular once again shows significant growth

rates in the attractive fields of iPhone, iPadand Android apps

TFT: satisfying results from external businessdevelopment

Overall revenue and earnings alreadyexceeding planned figures


Key Figures


53.3 65.6 74.9 77.1 92.2128.2

0

50

100

150

2005 2006 2007 2008 2009Revenue

2010

In EUR million / CAGR

2.6

7.611.2 9.6

12.6

18.2*

0

5

10

15

20

2005 2006 2007 2008 2009EBITDA

2010

Key figures (IFRS)in EUR million 2008 2009 2010

1 RevenueGrowth rate in %

77.1+3.0

92.2+19.5

128.2+39.1

2 EBITDAEBITDA margin

9.612.4%

12.613.7%

24.018.7%

3 Depreciation 3.9 3.7 8.1

4 EBITEBIT margin

5.77.4%

8.99.7%

15.912.4%

5 Financial costs -2.7 -4.2 -2.8

6 EBTEBT margin

3.03.9%

4.75.1%

13.110.2%

7

EATEPS (in EUR)EPS before sale of Playboy and non-recurring depreciation in EUR

2.30.05

2.10.05

10.60.220.16

TOMORROW FOCUS: achieving high revenueand earnings growth since 2005

Revenue and EBITDA 2005 - 2010

*EBITDA 2010 adjusted for positive non-recurring impact of sales of shares in Playboy Deutschland Publishing GmbH (as at: November 2010)


Growth trend continues in Q1-3 2011


in EUR million Q1-3 2011 Q1-3 2010* Change

1 Adjusted revenueRevenue (including Playboy and AdJug)

102.3102.3

83.394.0

+22.9%+8.8%

2 EBITDAEBITDA margin

13.913.6%

11.513.8%

+20.5%

3 Depreciation 3.5 4.0 -12.5%

4 EBITEBIT margin

10.410.2%

7.59.0%

+37.3%

5 Financial result -3.0 -2.3

6 EBTEBT margin

7.47.2%

5.26.2%

+43.3%

7 EAT 5.7 3.2 +76.1%*adjusted for revenue and earnings of Playboy Deutschland Publishing GmbH; Playboy Deutschland was sold in November 2010; also adjusted for revenue of August and September 2010 of AdJug -Group; earnings of August and September 2010 of AdJug are at equity; AdJug majority was sold in August 2011

Strong growth in earnings, despite seasonal investments in transactions segment (advertising spendings up 7.6 € m), M&A activities (consultancy fees up 0.7 € m) and provision for anticipated losses for Swiss Francs/€-hedge of 0.5 €m

21 November 2011

Equity ratio creates financial scope for growth

Equity ratio vs. debt ratio 12/07 – Q3/11In percent

35.7 45.7 52.9 59.2 52.0

64.3 54.3 47.1 40.8 48.0

0%

20%

40%

60%

80%

100%

12 2007 12 2008 12 2009 12 2010 Q3 2011Equity ratio debt ratio

9.7

0.0

18.924.6**

0

5

10

15

20

25

2010 2011Net debt EBITDA

Net debt* vs. EBITDA 2010/2011

* According to audited net debt definition of PWC** Analysts expectation

3.10.0

10.0

0.0

26.5

0

5

10

15

20

25

30

2012 2013 2014 2015 2016

Debt maturity 2012 - 2016

In EUR million

In EUR million


Strategy 2015


Strategy 2015: expansion of digital activitieswith high level of revenue and earnings growth

Premise for strategy 2015: economy between stagnation and moderate growth, no recession

Expansion of purely digital-based activitiesin the Advertising and Transactions segment

Revenue and earnings targets 2015 Revenue: EUR 250 million EBIT: EUR 30 – 40 million


Summary

TOMORROW FOCUS combines the qualities growth and value withina single company


TOMORROW FOCUS AG | Neumarkter Str. 61 | 81673 Münchenwww.tomorrow-focus.dewww.twitter.com/tomorrowfocuswww.facebook.de/tomorrowfocuswww.youtube.com/tomorrowfocus

Contact

Armin Blohmann Head of Group Communications & IR+49 (0)89 [email protected]

Dirk SchmelzerChief Financial Officer+ 49 (0)89 [email protected]

Sabine MinarConsultant Group Communications & IR+49 (0) 89 [email protected]


Financial calendar 2011/2012*

Date Event Location09 February 20126 p.m.

Get together with analysts, investors & media MunichBistro Conti

16 February 20126 p.m.

Get together with analysts, investors & media FrankfurtVilla Merton

27 March 2012 Publication of annual figures 2011 Munich

30 March 2012 Publication of annual report 2011 Munich

08 May 2012 Publication of interim report Q1/2012 Munich

23 May 201211 a.m.

Annual General Meeting MunichHaus der Bayerischen Wirtschaft

Max-Joseph-Str. 5

08 August 2012 Publication of interim report Q2/2012 Munich

08 November 2012 Publication of interim report Q3/2012 Munich

* Provisional dates


german equity forum 2011 tomorrow focus ag€¦ · internat. peer: eharmony,meetic beneficiary of...

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