pres annual results 2011 publi groupe 9 march

AnnualResults 2011esu ts 0Net profit 2011 of CHF 14.6 million; unchanged dividend of CHF 6unchanged dividend of CHF 6

1

Overview presentation order

1. Hans-Peter Rohner: Overview of 2011 results & key developmentsCEO & Chairman of the BoardCEO & Chairman of the Board

2. Andreas Schmidt: Key financials groupChief Financial OfficerChief Financial Officer

3. Hans-Peter Rohner: Segment resultsCEO & Chairman of the Board

4. Andreas Schmidt: Key financials Group under Swiss GAAP FERChief Financial Officer Process of changing of reporting standardg g p g

Update sale real estate portfolio

5. Hans-Peter Rohner: Conclusion & outlook 2012CEO & Ch i f th B dCEO & Chairman of the Board

6. All Q&A

2

Overview 2011 figuresg

Good results in growth segments; Media Salessegments; Media Sales unsatisfactoryunsatisfactory

Hans-Peter RohnerCEO & Chairman of the Board

3

2011 Group results L fi bl EBIT

1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook

Lower net profit; stable EBIT

Volume decline in the order of previous 12% l 9% i

Sales and gross margin, in millions of CHF

years: -12% sales; -9% gross margin (at constant fx -9% and -7%)

EBIT stable vs previous year

1'474 1'304 1'500

2'0002010 2011

EBIT stable vs previous year

Net profit of CHF 14.6 million significantly under the level of the

345.3315.6

-

500

1'000

g yprevious year (CHF 42.6 million), also due to much lower positive one-off factors than in 2010

Sales Gross margin

EBIT and Net profit, in millions of CHF

2010 2011

Good results in growth segments Search & Find and Digital & Marketing Services; unsatisfactory result in Media

30.532.6

42.6

30

40

502010 2011

Services; unsatisfactory result in Media Sales

14.6

0

10

20

EBIT N t fit

4EBIT Net profit

2011 segment resultsV d l f S h & Fi d Z fl d i DMS l


Very good result for Search & Find; Zanox not reflected in DMS result

EBIT, in millions of CHFUnsatisfactory result EBIT, in millions of CHF

dia

Sale

s

27 7 28.6

402010 2011Loss impacted by goodwill impairment of

CHF 5.1 m in TV business and one-time means deployed with PublimediaIncisive measures under way to ensure

2010 2011

Me

10 1

27.7

20

30y

that segment will achieve a level of sustained profitability corresponding to the level of capital invested in it

rch&

Fin

d

2.6 2.72.7

10.1

0

10Good result; EBIT higher than previous year due organisational efficiencies and strong performance in online & mobileTurnover of local.ch in the online and

Sear -0.4

-10.9-10

Turnover of local.ch in the online and mobile sectors will exceed print media in near future

Good top line development; Zanox with

DM

S

-20Media Sales Search &

FindDigital &

MarketingServices

Corporateand others

20% growth in local currencyVery good performance of Zanox and Namics not fully reflected in DMS under current reporting standard

Media Sales

Search & Find

Digital & Marketing Services

Corporate and others

5

p g

Online revenues with strong growthG d i h lid d d i d li


Good progress with consolidated and associated online revenue

Online Revenues, in millions of CHF Consolidated online revenue grows b 15 5% i l ti i ti th

Online Revenues, in millions of CHF

700

800

PubliGroupe Associated companies

710657

by 15.5%; incl. participations growth represents 18% at constant fx

Online revenue reaches 40% of total

PubliGroupe Associated companies

500

600

700

493

657business revenue; in terms of gross margin, online represents 50%

Growth mostly from Zanox and

380

517548

300

400Namics: Zanox CAGR 29% since creation of the joint venture in 2007; Namics with 14% of continuous organic growth since 2004

113 140 162

-

100

200organic growth since 2004

Media Sales with CHF 50 m online sales

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



2009 2010 2011

6

( %)( %) ( %)

Update on CEO recruitmentS l d f 3Q 2012


Start planned for 3Q 2012

Important strategic decisions with regard to the development of the organization taken in 2011: end of dual mandate of Chairman of the Board of Directors and CEO in 2012, which was created for a “limited transitionalof Directors and CEO in 2012, which was created for a limited transitional period” in April 2009

Recruitment of new CEO search within and outside the Group now in the pfinal phase: announcement planned in April 2012, start expected in Q3 2012

End of double mandate of Hans-Peter Rohner who will continue to serve as Chairman of the Board of Directors, subject to re-election at the Annual General Meeting on 25 April 2012

7

Key financials Groupy p

Well capitalised;lid h flsolid cash flow

Andreas SchmidtChief Financial Officer

8

P&L GroupL l l d l fi i l l


Lower net result mostly due to lower financial result

Ch % 2011 2010in millions of CHF

Change % 2011 2010

Revenue -12% 1'304.0 1'474.2

Gross margin -9% 315.6 345.3

Expenses -7% -278.2 -300.5

EBITDA 17% 37 4 44 8EBITDA -17% 37.4 44.8

EBIT -6% 30.5 32.6

Financial result - -3.5 23.9

Taxes -35% -4.7 -7.2

Non-controlling interests 15% -7.7 -6.7

Net Result -66% 14.6 42.6

9

Extraordinary items 2011I i di


Important gains on divestments

in millions of CHF

Net Result 2011 - Nominal 14.6

Divestment 15.4

Impairments -7.7

Restructuring -0 7Restructuring -0.7

Others -1.1

Total non recurring elements 5 9Total non recurring elements 5.9

Net Result 2011 - Comparable 8.7

10

Net result – causes of change1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook

Significantly lower comparable result

42 6NET RESULT 2010 42.6

26.6

16.0

NET RESULT 2010

One Time Events 2010

COMPARABLE 2010

10.9

2.1

29.7 Gross margin

Expenses

Depreciation

8.2

3.6

2.1p

Associated

Financial result

8.7

0.5

2.9Taxes

Minority interests

COMPARABLE 2011

14.6

5.9One Time Events 2011

NET RESULT 2011

11-10 -5 0 5 10 15 20 25 30 35 40 45 50CHF mio

Net financial result1. Overview 2011 I 2. Key financials I 3. Segment update I 4. Update finance projects I 5. Conclusion & outlook

Last year’s financial result affected by sale of Edipresse

in millions of CHF 2011 2010

Result on loans and receivables 1.3 1.4

Result on marketable securities -0.4 7.7

Result on available-for-sale securities 0.9 17.0

Result on uncommited net assets of employer's foundations -0.5 -

Changes in fair value of contingent consideration 1.1 1.6

I t t 2 6 3 7Interest expenses -2.6 -3.7

Net currency exchange differences -3.3 -0.1

Total 3 5 23 9Total -3.5 23.9

12

Cash flow statementS h i i d d i d i f b k d b


Strong cash position at year end despite reduction of bank debt

Change 2011 2010

in millions of CHF

Cash and cash equivalents as of 1 January 77% 102.6 58.0

Cash flows from operating activities -53% 13.8 29.6

Cash flows from investing activities -48% 50.3 97.0

Cash flows from financing activities -25% -58.9 -78.7

Eff t f h t 1 5 3 3Effect of exchange rates - 1.5 -3.3

Cash and cash equivalents as of December 31 7% 109.3 102.6

13

Group balance sheetS lid b l h i f d


Solid balance sheet secures strategic freedom

in millions of CHF Change as of 31 december 2011 as of 31 december 2010in millions of CHF Change as of 31 december 2011 as of 31 december 2010Currents assets 3% 428.5 416.7Non-current assets -21% 351.1 444.2

Total assets -9% 779.6 860.9Current liabilities -11% 263.8 297.9Non-current liabilities -40% 71.5 118.8Equity, shareholders of PubliGroupe Ltd. - 409.3 410.8Non-controlling interests 5% 35 0 33 4Non controlling interests 5% 35.0 33.4

Total liabilities and equity -9% 779.6 860.9

Equity in % of assets 53% 48%

N t h t t li idit 124 118Net short-term group liquidity 124 118

Bank debt 50 93

Equity ratio improved by 5% vs 2010

Bank debt strongly reduced

14

Key segment resultsy g

Two out of three t ithsegments with

good resultsgood resultsHans-Peter RohnerCEO & Chairman of the Board

15

Media Sales

16

Media SalesU i f l d h


Unsatisfactory result; measures underway to strengthen segment

Sales, in millions of CHFSales volume down 13%, strongly Sales, in millions of CHF

11811026

1000

15002010 2011affected by abandonment of TV

business amounting to CHF 61 m

EBIT result impacted by CHF 5.1 m;

2010 2011

0

500

yimpairment on TV business; pioneering, future-oriented measures employed for the online platform “AdMarket” led to significantly higher one off operating

Gross margin and EBIT, in millions of CHF

2010 2011

Salessignificantly higher one-off operating expenditures with Publimedia

Solid results in the local & regional business in CH where turnaround is


2010 2011

188.6161.3

100150200250

business in CH where turnaround is confirmed; somewhat lower international volumes mostly due to fx effects

I 2012 f M di S l d DMS

2010 2011

-0.4-10.9-50

050

100

Gross margin EBIT

In 2012, for Media Sales and DMS (SVBmedia), the revenue disclosed will be only the commission earned instead of the total billing of ad space

17

Gross margin EBITof the total billing of ad space

Media SalesE i d i d t f t ff ti 2011


Economic and industry factors affecting 2011

External factors:Unchanged Media Sales revenue split by geographic

Economic slowdown in 2nd semester affected print adsNegative development in job ads

scope, contracts & media over the last 5 years despite significant changes in overall volume 1

Media Sales I t ti l

~20% ~20% Negative development in job adssegment (print & online)Price pressure for large accounts acrossall media & market segments

International

Local &

Regional~30% ~30% g

Internal factors:Full-year effect of lost of „regie“ contracts(Edipresse & Mittellandzeitung after 1 yr

Media Sales Switzerland

~80% ~80%

Regional

( p g yof transition period)Significant one-time cost for re-engineering and process standardization

National ~50% ~50%

projectsPublimedia continues to lose market share due to attractive financial incentive f di t b kiNote

20112007

18for direct bookings Note:

1) Split approximate and illustrative, results not being reported by local/regional/national scope;

Media Sales (1)U d f d d i I ’ D


Update status of measures announced during Investors’ Day

1st PILLAROptimization measures being launched:

Become yet leaner and more adapted to market (more sales driven)STRENGTHEN

the traditionalLeaner and more

Intervention and enrichment of print offerings along three areas: Switzerland, international, central functions

the traditional print business

more flexible cost structure

Grow digital footprint:2nd PILLAR

Further investments in digital initiatives

Develop new digital products to drive

ACCELERATE the digital agenda& explore new

Higher share of di it lDevelop new digital products to drive

growthp

opportunities digital turnover

19

Media SalesS h di i l b i

1st PILLAR


Strengthen traditional business

Improvement Project Objectives

Swiss business

Process harmonization

Improvement areas

Project

Harmonization of sales and back office processes across all branches in order to realize efficiency gains

Objectives

business harmonization

Centralization of sales back office

order to realize efficiency gains

Realization of cost savings by consolidating the sales back office functions of branches physically and virtually within three regional centers

Sales effectiveness

R li ti f t i th h lid ti f i t ti l

Improving the effectiveness of the sales force by introducing a value-oriented segmentation and go-to-market model

International business

Central cost

International sales network

General&

Realization of cost savings through consolidation of international operations and regional structures. Deepening focus on industry segments in order to offer increased specialization to clients

Optimization of administrative efficiency and external spend in all areas,Central cost General&Administrative

IT

Optimization of administrative efficiency and external spend in all areas, centralizing corporate functions

Reduction of IT cost and complexity through simplification of the IT landscape and optimization of the IT delivery model

20

landscape and optimization of the IT delivery model

Media SalesS l f d b k ffi i i i h d


1st PILLARSales force and back office optimization shows good progress

Project Achievements Next stepsProgressProject

• New processes for order entry and processing designed

Achievements Next steps

• New processes in use in all branches by April 1st 2012

Progress

Process designed• Trainings for sales force

have started

Process harmonization

• Physical consolidation of first back-office sales functions in branches

• Development of an inter-

• Mobile office concept will be rolled out in waves and will leverage existing models within the organization Centralization

branch collaboration model to realize efficiency gains

Project start:Sales Project start: March 2012

Sales effectiveness

21

Media SalesF h i i i i h fi hi

1st PILLAR


Further cost optimization with first achievements

P j t A hi t N t tP

International

Project

• Sale of P-Australia• New management in growing

Achievements

• Strategic and structural adjustments in the Americas

i

Next stepsProgress

International sales network

APAC region• Strategic adjustments in

European operations

region• Overall strategy development

focusing on industry segments

General &Administrative

• Savings potential in several areas detailed

• Spend allocation optimized with regards to effectiveness

• Implementation of spend reduction and new allocation

and efficiency

• Target IT landscape and underlying IT delivery model

• Finalize core-system selection process

IT developed

• Clear roadmap defined

22

Media SalesG di i l d

2nd PILLAR


Grow digital agenda

Achievements Next stepsInitiatives Achievements Next stepsInitiatives

• ad4quality: Strengthened relationships with key Swiss market playersp y

• ad4max: New inventory secured from Bluewin and Microsoft

• Strong local digital sales growth• passengerTV: further partnerships secured

• Continue and expand initiatives to increase digital competence in all branches

Digital portfolio

• Short list of technology providers defined• Head of operations on board

• Select technology partner• Coordination with DMS

demand side platformSell Side Platform SSP

• Recruitment process under way for key account managers

demand side platform• Publisher acquisition

program begins March

Platform SSP(RTB enabled)

23

Media Sales

24

Search & FindS f l i i li & bil i d fi bili


Sales, in millions of CHF

2010 2011

Successful migration to online & mobile, increased profitability

Sales, in millions of CHF

136.8 141.0

80100120140160

2010 2011Sales volume grows marginally by 3%; online and mobile sales grow by 36%, almost outweighing 14% loss in traditional b siness

2010 2011

020406080business

EBIT result up for the first time since 2007 due to operational efficiencies achieved ft t t i d iti b d


2010 2011

Salesafter restructuring and positive one brand strategy (local.ch)

In 2011 order intake for the first time Gross margin and EBIT, in millions of CHF

2010 2011

98.0 95.5

6080

100

120larger (51%) for online and mobile than for print

Local.ch most prominent search app in 28.627.7

0

20

40

Gross margin EBIT

Switzerland after Google Maps according to Nielsen Net Ratings, allowing it to consolidate leadership position

25

Gross margin EBIT

Search & FindE bli h d #2 i i f G l i h k


Established #2 position after Google in search market

3.5NielsenNielsen Unique audience1 20112

1.52.02.53.03.5

0.00.51.0

Goo

gle

e M

aps

luew

in

ocal

.ch

arch

.ch

onbu

ch

arch

.ch

arch

.ch

Sei

ten

ctor

ies

uide

.ch

ATE

24

ocal

.ch

QYP

E

help

.ch

G

Goo

gle B l o

sea

Tele

fo

tel.s

ea

map

.sea

Gel

be

Dire

c

swis

sgu GA

map

.lo h

N t t iN t t i

11% 9% 7% 8% 4% 5% 7% 8% 2% 1% 3% 4%

50%

NetmetrixNetmetrix Unique clients3 2011 / 2012

-50%

0%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

261 Nielsen / Netratings2 Average unique audience throughout 20113 Source: Netmetrix / Unique clients

Search & FindS lid hi h k i i i


Mobile app performance 2011/2012

Solid usership that keeps growing in importance

U 10

127.0

Users use app 10 times a month on

avg.2

8

10

5.0

6.0

1 4 m

63.0

4.01.4 m

downloads3

600k

2

4

1.0

2.0600k

apps in use1

00.0Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

271 On all platforms (iOS,Android,Blackberry,W7,Nokia) . Source: amount of searches by mobile devices to our server 2 Average usage per device = usage of mobiles app1 / mobile unique users1

3 Source: Apple / amount of searches by mobile devices to our server

Search & FindN i i i i l d ll l f


New initiatives planned across all platformsTotal Swiss local advertising marketCHF m, 2010

Zoom on online business models (excl. online press)CHF m, 2010

Others80

search ch

gate24.ch15Others 14

Others 320

290100110625 11010089090 29026085

ti li tigreen

Deindeal 15Groupon 10

Google16

search.ch16

CCO 19

Blick 140Others 205

Others 45

Renovero 14 Lead Generation

“SC Di t i ”

verticalisationCouponing

Booking 3

green book

video

Website creation² & content120

Local.ch54

NZZ 190

APG 52Energy 10

PG exc. local10

Online content

Maturity“SC Directories”

110

localwelcome

UXdesign

video

360°

website

homegate.ch 20

swissfriends.ch 10jobscout24.ch 10

immoscout24.ch 10

54

20 Minuten etc. 240Various

GoldbachMedia 25

Various Goldbach media 30

SF1, SF2, Sat1, ProSieben 15PG exc. local 10

Classifieds

home.ch

welcomenew mobile

offering

website

Source : Publisuisse Mediaguide, Swisscom, OC&C analysisLocal.ch Tamedia Ringier Publigroupe Other

Press (Print&Online)

DirectMarketing1

TV, radio,outdoor

Printed Directories

OnlineSearch &

Find

281. We assumed that half of the direct marketing is local 2. Website creation market sizing assumptions: 15% of SME not owning a website create one,

15% of those with website rebuild it in a given year, average annual spend: CHF 3.500; 3. Emerging segment in 2010, estimated at CHF 1m

Media Sales

29

Digital & Marketing ServicesG f


Good operational results not reflected in results

Sales, in millions of CHF2010 2011Contraction of Sales volume by 9% (by

Sales, in millions of CHF 2010 2011

139.6 127.7

80100120140160

Contraction of Sales volume by 9% (by 1% without currency impact), due to lower sales at SVBmedia, linked to traditional business (Zanox sales not

2010 2011

0204060

Sales

(consolidated)

Above market growth at Zanox( 20%) f ll d b th i iti f Sales(+20%), fuelled by the acquisition of M4N in the Netherlands and geographic expansions, sales reaching CHF 543 5 m

Gross Profit and EBIT, in millions of CHF

2010 2011EBIT Pro Formareaching CHF 543.5 m

Namics 11% growth: CHF 44.8 m

Pro-forma EBIT grew by 7% vs. 2010,

50.7 52.5

30 040.050.060.0

EBIT Pro Forma

g yfrom CHF 14.8 m to CHF 15.8 m, and by 19% without currency impact

All DMS it h fl iti

2.6 2.70.0

10.020.030.0

G P fit EBIT

14.8 15.8

30All DMS units are cash flow positive Gross Profit EBIT

Digital & Marketing Services G


PG two largest digital companies capturing double digits market growth

Zanox Revenue 2004 - 2011 (in EURm) Performance Marketing - Zanox

300

400

500 CAGR 07-11: 29%

- Above market growth achieved both organically and via acquisitions (Digital Window in 2009, Buy.at in 2010 M4N in 2011)

0

100

2002010, M4N in 2011)

- CAGR 29% since creation of the joint venture

- Approaching the EUR 500 m mark of

Digital solutions - NamicsNamics Revenue 2004 - 2011 (in CHFm)

2004 2005 2006 2007 2008 2009 2010 2011Approaching the EUR 500 m mark of transaction commissions

- 14% of continuous organic growth since 2004

- Blue chip clients in CH, DE30

40

50 CAGR 14%

Blue chip clients in CH, DE

- Resilient to the last market downturn10

20

2004 2005 2006 2007 2008 2009 2010 2011

31

2004 2005 2006 2007 2008 2009 2010 2011

Key Financials Group:y p

Update on accounting change; real estate

Andreas SchmidtChief Financial Officer

32

Reporting standard change to Swiss GAAP/ FERO i


Overview

As from 2012 onwards, PubliGroupe will change its financial reporting from IFRS to the Swiss GAAP/ FER standard. This change will have several important consequences:

Proportional consolidation

Revenue presentationp

Goodwill accounting

Other changes

No changes planned in terms of transparency level

With the standard change to Swiss GAAP/ FER PubliGroupe's financialWith the standard change to Swiss GAAP/ FER, PubliGroupe s financial reports will more accurately describe the value creation, the performance and the development of the Group's three operating segments

33

Reporting standard change to Swiss GAAP/ FERI


Important consequences

Proportional consolidationThe application of the proportional consolidation for the local.ch partnership with Swisscom and the Zanox joint venture with Axel Springer will allow a higher transparency for the performance and development of these two core businesses

Revenue presentationThe net revenue presentation (commission earned instead of total billing of ad space) from 2012 onwards reflects the shift of the Media Sales business away from a predominantly exclusiveonwards reflects the shift of the Media Sales business away from a predominantly exclusive representation business towards a simple sales representation. In addition, the net presentation better reflects the weight of a decreased Media Sales within PubliGroupe

Goodwill accountingGoodwill of acquisitions will be offset at acquisition date resulting in a lower equity in the balance sheet and no further write-offs of acquired intangibles in the profit & loss statement

Other changesThe standard change will impact the employer foundations presentation, sales expenses

34activation, and some other, but less material positions

Reporting standard change to Swiss GAAP/ FERB l h i (i di i di d)


Balance sheet impact (indicative, not audited)

CHF Mio IFRS Swiss GAAP/ FER Major Changes 2)20112011 2011 1)

+ proportional zanox/ Swisscom Directories/ local - proportional LTV- goodwill/ intangibles off-set at acquisition date - non-activation of sales expense

Current assets 429 487

Non-current assets 351 118p

+ proportional zanox/ Swisscom Directories/ local - proportional LTV- employer foundation not on balance sheet- non-activation tax credits

Total assets 780 605Total assets 780 605

+ proportional zanox/ Swisscom Directories/ local - proportional LTV

+ proportional zanox/ Swisscom Directories/ local

Current liabilities 264 347

Non-current liabilities 72 95- proportional LTV

Equity, PG shareholders 409 160Non-controlling interest 35 3 - minority share of LTV to Swisscom

Total liabilities and equity 780 6051) indicative restatement 2011, not audited2) major changes, minor impacts not mentioned

35

Reporting standard change to Swiss GAAP/ FERP fi & l i (i di i di d)


Profit & loss statement impact (indicative, not audited)

CHF Mio IFRS Swiss GAAP/ FER Major Changes 2)

2011 2011 1)2011 2011 1)

- net revenue presentation Publicitas/ SvBMedia+ proportional zanox/ Swisscom Directories/ local - proportional LTV+ proportional zanox/ Swisscom Directories/ local - proportional LTV

ti l / S i Di t i / l lE

316

2 8

372

319

Revenue 1304 606

Gross margin

- proportional zanox/ Swisscom Directories/ local + proportional LTV- non-activation of sales expense

EBITDA 37 53+ non-activation of sales expense+ amortisation of intangibles from acquisitions

Depreciation & amortisation -24 -12

Expenses -278 -319

- proportional zanox/ Swisscom Directories/ local + proportional LTV

Impairment loss -7 0 + no annual impairment checks in Swiss GAAP

- share of zanox/ Swiscom Directories/local- share of associated press participations

EBIT 31 41

Share in associates 23

EBIT 31 41+ share of associated press participations+ proportional zanox/ Swisscom Directories/ local - proportional LTV - proportional zanox/ Swisscom Directories/ local + proportional LTV

ti ti f t dit

Taxes -5 -13

Financial result -4 2

- non-activation of tax credits- deferred taxes on intangibles amortisation

Non-controlling interests -8 -1 + minority share of LTV to Swisscom

Net result of PG shareholders 15 291) indicative restatement 2011, not audited

36

) ,2) major changes, minor impacts not mentioned (expressed as impact on net result)

Reporting standard change to Swiss GAAP/ FERTi i


Timing

PubliGroupe intends to implement segment and standard change in 1st semester 2012:

Announcement of intended change: 1st Dec

Presentation of new accounting details:

Planned change of SIX segment:

March 2012

May 2012g g

First financial report in Swiss GAAP/FER:

May 2012

August 2012

37

PubliGroupe’s real estate assets4 l d i S i l d l f l


4 assets located in Switzerland currently for sale

Bern Lausanne - Mon-Repos Lausanne - Mousquines Lausanne - Toises

1971 | 4'551m2 1974 | 3'089m2 1980 | 4'266m2 1962 | 2'345m2

Total rentable area14'251 m2

Note: Year of construction | Rentable surface area

38

Real estateTi i


Timing

PubliGroupe plans to divest 4 assets in 2012:p p

− 3 buildings in Lausanne: Mon-Repos, Mousquines, Toises

− 1 building in Bern

PubliGroupe intends to distribute a large portion of the proceeds from the sale of the properties to its shareholders

One main objective is to execute the sales and the return of proceeds to shareholders in the most tax-efficient manner

The sale process has already been initiated

A frame for a share buy-back via put-options will be proposed to the general assembly on April 25 2012on April 25, 2012

39

Conclusion and tl k 2012outlook 2012

Hans-Peter RohnerCEO & Chairman of the Board

40

Status quo key decisions on Group level CEO h l l d d l d f S 2012


CEO search almost concluded, start planned for Summer 2012

Corporate Governance

New CEO search near completion; start planned for Q3 2012HP Rohner to serve until new CEO is in post; will remain as Chairman of the Board

PubliGroupe execution of its strategic cornerstones

Governance

Sale real estate

HP Rohner to serve until new CEO is in post; will remain as Chairman of the Board, subject to re-election at the Annual General Meeting on 25 April 2012.

PubliGroupe plans to divest 4 assets in 2012: 3 Lausanne buildings, 1 in BernSale proceeds used as return for shareholders and partly for debt reduction

Change accountingstandard

Sale proceeds used as return for shareholders and partly for debt reductionBalance sheet to remain very solid

By means of a pro rata consolidation and by switching from IFRS to Swiss GAAP FER accounting standards, PubliGroupe able to present most important holdings standard g , p p p gmore clearly in financial reportingIn 2012, for Media Sales and DMS (SVBmedia), the revenue disclosed will be only the commission earned instead of the total billing of ad space

Dividend The Board of Directors will propose to the next General Meeting of Shareholders on 25 April 2012 in Lausanne the distribution of the amount of CHF 6 per share, composed of a dividend of CHF 3.80 and of CHF 2.20 that will be distributed tax-free from reserves from paid-in capital. This dividend corresponds to around 40% of the net proceedsmade in the year under review from sales of property and participations and

41

made in the year under review from sales of property and participations and demonstrates the solidity of the Group.

PubliGroupe profile under new standard“A diff i l”


“A different animal”

„Old“ PG under IFRS(Revenue: CHF 1‘304 m)

„New“ PG under Swiss GAAP FER(Revenue: CHF 606 m)(Revenue: CHF 1 304 m) (Revenue: CHF 606 m)

IFRS standard

World22%

Swiss GAAP FER standard

World56%22%

CH

56%

CH 44%

Swiss Gaap standard (estimation)IFRS standard

78%

Online57%

(estimation)IFRS standard

Online12%

Print 43%Print

4288%

Note: Swiss GAAP FER with quota consolidation & revenue disclosed according to commissions earned instead of the total billing of ad space for Media Sales and DMS (SVBmedia)

Outlook S lid f h i i i f i b i


Solid prospects for growth segments; optimization of print business

1. Media Sales to focus on growing online 3. Search & Find will continue its double1. Media Sales to focus on growing online sales in Switzerland & abroad, reducing administrative costs, harmonizing processes and IT systems

3. Search & Find will continue its double migration from print to online & mobile; solid perspectives to consolidate strong market position and increase profitability

4. PubliGroupe under new operational leadership as of 3rd quarter 2012, further developing Group motto “Marketing. More.

2. DMS will further capitalize on growth engine Zanox with its double-digit growth

Effective.”

Good f rther gro th is e pected in all online b sinessGood further growth is expected in all online business across all segments where further investments are

envisioned. Traditional lines of business – especially the print business of Media Sales – is undergoing further restructuring that will improve profitability but affect

43restructuring that will improve profitability but affect immediate prospects because of restructuring costs

Back-up slides

44

Comparable expenses by segment Backup

in millions of CHF Change 2011 2010

Search & Find 7% -65.9 -61.6

Media Sales -8% -162.8 -177.7Media Sales 8% 162.8 177.7

Digital & Marketing Services 4% -51.8 -49.9

Corporate & Others 1) -16% -21.2 -25.3

Eliminations -18% 8.3 10.2

Comparable expenses -4% -293.4 -304.3

Non recurring elements 15 2 3 8Non recurring elements - 15.2 3.8

Total expenses -7% -278.2 -300.5

1) includes Custom Publishing

45

Consolidated income statement Backup

in millions of CHF Change 2011 2010Revenue -12% 1304.0 1474.2

Purchases -12% -933.3 -1056.6

Sales reductions -24% -55.1 -72.3

Gross margin -9% 315.6 345.3Personnel expenses -8% -221.9 -241.2

General and administrative expenses -2% -79.0 -80.3

Other income and expenses 8% 22.7 21.0

EBITDA -17% 37.4 44.8Depreciation and amortisation -10% -23.6 -26.1

Impairment loss -6.6 -2.0

Share in result of associates 47% 23.3 15.9

Operating result (EBIT) -6% 30.5 32.6Operating result (EBIT) 6% 30.5 32.6Financial result - -3.5 23.9Result before income tax -52% 27.0 56.5

Income tax expense -35% -4.7 -7.2

Result 55% 22 3 49 3Result -55% 22.3 49.3

Result attributable to:

- Non-controlling interests 15% 7.7 6.7

Sh h ld f P bliG Ltd 66% 14 6 42 6

46- Shareholders of PubliGroupe Ltd -66% 14.6 42.6

Consolidated balance sheet Backup

Assets

as of 31 december

as of 31 december


Cash and cash equivalents 7% 109.3 102.6

Marketable and available-for-sale securities -6% 14.4 15.3

Receivables, accruals and taxes receivables -8% 274.5 298.8

A t h ld f l 30 3Assets held for sale - 30.3 -

Current assets 3% 428.5 416.7

Land and buildings -54% 34.9 75.6

Other tangible and intangible assets -23% 56.4 72.9g g

Investments in associates 2% 236.3 232.7

Financial assets and deferred tax assets -63% 23.5 63.0

Non-current assets -21% 351.1 444.2

Total assets -9% 779.6 860.9

47

Consolidated balance sheet Backup

Liabilities

as of 31 december

as of 31 december


Current debts - 0.2 -

Payables, accruals and taxes payables -12% 255.1 289.7

Long and short term provisions, deferred taxes -9% 27.8 30.4

N t d bt 46% 52 2 96 6Non-current debts -46% 52.2 96.6

Total liabilities -20% 335.3 416.7

Share capital - 2.5 2.5

Treasury shares -17% -43.9 -52.6easu y s a es % 3 9 5 6

Reserves -2% 450.7 460.9

Equity, shareholders of PubliGroupe Ltd - 409.3 410.8

Non-controlling interests 5% 35.0 33.4

Total equity - 444.3 444.2

Total liabilities and equity -9% 779.6 860.9

48

Cash flow from operating activities Backup


Result 22.3 49.3

Adjustments for non-cash items 2.5 -14.1

Dividends paid to non-controlling interests by Group companies -6.0 -9.1

Dividends received 16.1 15.0

Interest received 1.3 1.4

Interest paid -3.1 -4.2

Taxes paid -5.6 -8.3

Use of provisions -4.4 -7.2

Working capital changes -9.3 6.8

Cash flows from operating activities 13.8 29.6

49

Cash flow from investing activitiesBackup

Cash flow from investing activities


Acquisitions of tangible assets -2.4 -3.6

Disposals of tangible assets 14.3 24.1

Acquisitions of intangible assets -11.6 -14.3

Disposals of marketable securities 0.4 4.4

Acquisitions of subsidiaries, net of cash acquired -2.3 -3.4

Acquisitions of associates - -2.0

Disposals of subsidiaries, net of cash disposed of 11.5 0.1

Disposals of associates 0 3 22 7Disposals of associates 0.3 22.7

Investments in financial assets -1.0 -7.0

Divestments of financial assets 41.1 76.6

Taxes paid - -0.6

Cash flows from investing activities 50.3 97.0

50

Cash flow from financing activitiesBackup

Cash flow from financing activities


Increase /(decrease) in bank debts - -65.0

Increase in long-term debt 0.2 -

Decrease in long-term debt -43.0 -7.0

Capital contribution from non-controlling interests - 0.1

Purchase of treasury shares -4.7 -1.5

Sale of treasury shares (Share-based payments) 5.2 0.2

Acquisition of non-controlling interests -2.6 -5.6

Increase in additional paid-in capital 0 1 0 1Increase in additional paid-in capital 0.1 0.1

Dividend paid to shareholders of PubliGroupe Ltd -14.1 -

Cash flows from financing activities -58.9 -78.7

51

Standard change - Main accounting changesIFRS P/L S i GAAP FER P/L

Backup

IFRS P/L versus Swiss GAAP FER P/L

Company IFRS P/L Swiss GAAP P/LCompany IFRS P/L Swiss GAAP P/Lwith proportional method

LTV Gelbe Seiten AG 1) All P/L lines presented at 100% 1) All P/L lines presented at 51%

2) Minus one line "non-controlling interests" at - 49%

2) NO line "non-controlling interests"

Swisscom Directories AGand local ch AG

One line at 49 % in the EBIT(share in result of associates)

All P/L lines presented at 49%

and local.ch AG

Zanox AG One line at 47.5 % in the EBIT(share in result of associates)

All P/L lines presented at 47.5%

52

Standard change - Main accounting changesG d ill i C i li i f l f

Backup

Goodwill accounting + Capitalisation of sales force costs

Goodwill IFRS Swiss GAAP FERGoodwillAccounting

IFRS Swiss GAAP FER

Balance Sheet Purchase price allocation process to intangibles and residual goodwill

No PPA process for intangibles.Offset of acquired goodwill with equity at the date of the acquisition, with a theoretical calculation of amortization over 5 years in the notes

Profit and Losses Depreciation of intangibles No yearly amortisation, but goodwill p gNo straight line amortisation of goodwill

y y , gconsidered in the profit and losses at the time of the exit from the consolidation scope

Capitalisation of sales force costs IFRS Swiss GAAP FER

Search & Find Sales commissions incremental to the Sales commissions are recognisedSearch & Find Sales commissions incremental to the contacts acquisition are recognised as intangible assets and depreciated when revenue is realised (over three years)

Sales commissions are recogniseddirectly through the P/L

53

Swiss GAAP/ FERSwiss GAAP/ FER

Revenue and gross margin, in millions of CHF

F ll t ti b i

1'304 1'500

2'000IFRS FER Estimation

For all representation business (mainly Media Sales and SvBMedia) only commission instead of billings are reported as revenues

372.5315.6

606 500

1'000

The proportional consolidation will impact all lines of the P&L and

-

Revenue Gross marginEBIT and Net profit, in millions of CHF

IFRS FER Estimation

increase revenues, gross margin and EBIT (and taxes)

The results (EBIT and Net profit) will

28.930.5

47.0

30

40

50

60IFRS FER EstimationThe results (EBIT and Net profit) will

increase because of the elimination of the PPA amortisation

14.6

0

10

20

30

54EBIT Net profit

Swiss GAAP/ FERC lid d i

Backup

Consolidated income statement

2011 2011IFRS FERIFRS FER

in millions of CHF estimateRevenue 1304.0 606.0Purchases -933.3 -233.5Sales reductions 55 1Sales reductions -55.1 -Gross margin 315.6 372.5Personnel expenses -221.9 -256.0General and administrative expenses -79.0 -89.3Other income and expenses 22 7 25 8Other income and expenses 22.7 25.8EBITDA 37.4 53.0Depreciation and amortisation -23.6 -12.4Impairment loss -6.6 -Share in result of associates 23 3Share in result of associates 23.3Operating result (EBIT) 30.5 40.6Financial result -3.5 2.2Result before income tax 27.0 42.8Income tax expense -4.7 -13.3Income tax expense 4.7 13.3Result 22.3 29.5

Result attributable to:- Non-controlling interests 7.7 0.6

55

Non controlling interests 7.7 0.6- Shareholders of PubliGroupe Ltd 14.6 28.9

Swiss GAAP/ FERC lid d b l h

Backup

Consolidated balance sheet

AssetsAssets2011 2011IFRS FER

in millions of CHF estimatein millions of CHF estimateCash and cash equivalents 109.3 127.5Marketable and available-for-sale securities 14.4 14.4Receivables, accruals and taxes receivables 274.5 314.4Receivables, accruals and taxes receivables 274.5 314.4Assets held for sale 30.3 30.3Current assets 428.5 486.6Land and buildings 34.9 34.9Other tangible and intangible assets 56.4 23.9Investments in associates 236.3 49.5Financial assets and deferred tax assets 23.5 10.1N t t 351 1 118 4Non-current assets 351.1 118.4Total assets 779.6 605.0

56

Swiss GAAP/ FERC lid d b l h

Backup

Consolidated balance sheet

LiabilitiesLiabilities2011 2011IFRS FER

in millions of CHF estimatein millions of CHF estimateCurrent debts 0.2 0.3Payables, accruals and taxes payables 255.1 335.9Long and short term provisions, deferred taxes 27.8 22.3Long and short term provisions, deferred taxes 27.8 22.3Non-current debts 52.2 83.6Total liabilities 335.3 442.1Share capital 2.5 2.5Treasury shares -43.9 -43.9Reserves 450.7 201.8Equity, shareholders of PubliGroupe Ltd 409.3 160.4N t lli i t t 35 0 2 5Non-controlling interests 35.0 2.5Total equity 444.3 162.9Total liabilities and equity 779.6 605.0

57

pres annual results 2011 publi groupe 9 march

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