tomorrow focus ag company presentation€¦ · company presentation | dirk schmelzer page 5 32.4...

Dirk Schmelzer, CFO

January 2013

TOMORROW FOCUS AGCompany presentation

53.365.6

74.9 77.192.2

128.2135.9150.0e

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012

Revenue

2.6

7.611.2

9.612.6

18.221.4

27.3e

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011 2012

EBITDA

64.5%

2.0%

33.5%=

EUR 73.0 million

Burda Digital GmbHManagement Board & Supervisory BoardFreefloat

Shareholdings Management Board

Toon Bouten

CEO (since January 1st 2013)

before that: European Directories Holding B.V.

Dirk Schmelzer

CFO

before that: Telefónica Group

Christoph Schuh

Member of the Management Board

before that: Tomorrow Internet AG

Revenue and EBITDA 2005 - 2011In EUR million / CAGR

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

Key facts

� Headquarters: Munich, Germany

� Employees: 744 (FTE)

� Share capital: EUR 53,012,390

� Admitted to Prime Standard: ‚TFA‘; ISIN DE0005495239

� Share price 52wk high/low: EUR 4.38 / EUR 3.21

� Share price January 31st 2013: EUR 4.11

� Market capitalisation: EUR 217.9 million

Company presentation | Dirk Schmelzer January 2013

We monetize content

Company presentation | Dirk Schmelzer

Transactions AdvertisingSEGMENT

user-generated professionalCONTENT

Provision Subscription AdvertisingMONETISATION

Travel HealthMatchmaking Display AdvertisingMARKET

MARKET

GROWTH

January 2013

~ EUR 80 m. ~ EUR 30 m. ~ EUR 30 m.BUSINESS SIZE

Advertising

January 2013Company presentation | Dirk Schmelzer Seite 4

� Advertising spent will continue to shift towards online

advertising

TOMORROW FOCUS has a well positioned online advertising portfolio


32.4

29.1 28.5

5.5 5.1 4.8

14.8

10.7

9.1

39.8

29.0

22.1

7.5

26.2

35.4

2005 2010 2015

TV

Radio

Newspaper

Periodicals

Internet

*PhoCus Wright Inc., Own estimation Sources: ZAW, OVK, PWC, PDMM, OWM Media Map, expert interviews/estimates, McKinsey ; ** Including display ad, Search & Affiliate, classifieds

January 2013

Split of advertising spendings in Germany 2005-2015*In percent

Business model, market position & USP‘s

Entity Market Position

USPBusiness Model

High quality

own and third

party content

#1 premium

ad network

Commission

income from

marketing of online

advertising

Lean cost

structure and

high reach

#3 news

portal

Online advertising

Successful

mobile first

strategy

#3 stock

market app

Online advertising

Strong user

community

#4 parental

portal

Online advertising

� Broad coverage of online advertising offers, including

strong sales and content

Online advertising has grown consistently for years

Traditional display advertising shows above-average growth

compared to search term marketing and affiliate marketing

.0.1 0.3 0.3 0.3 0.40.10.5 0.5 0.5 0.6

0.3

0.8 0.9 1.11.4

0.4

1.51.9

2.2

2.8

2005 2008 2010 2012 2015

Affiliate Classifieds Display Search

26.5

27.7

27.8

29.4

31.6

22 24 26 28 30 32

eBay Advertising

Axel Springer Media Impact

United Internet Media

Interactive Media

TOMORROW FOCUS Media

TOMORROW FOCUS Media reaches 31.6 million Germans; this

represents more than 62% of all online users in Germany

TFM has continuously increased its share of Germany‘s online ad

networks

TOMORROW FOCUS Media is Germany‘s biggest online ad network


Sources: AGOF, ZAW, OVK, PWC, PDMM, OWM Media Map, expert interviews/estimates, McKinsey

Online advertising spendings in Germany 2005-2015*In EUR billion

Reach of online ad networks in GermanyIn million unique users (November 2012)

19.3 19.8 20.8

25.0

28.9 29.0

-2.4 -1.1 -1.0

3.14.6 3.7

2008 2009 2010 2011 2012e 2013p

Advertising segment with continuous improvement of profitability


+ 12% p.a.

TFAG Revenues and EBITDA development in the advertising segment*In EUR million

January 2013

+ 4% p.a.

Revenues

EBITDA

• Profitable growth since

2011

• Portfolio changes in

2011 and 2012 led to

lower revenues but

helped to increase

profitability

• Flat 2013 due to

changes in third party

clients

• Continuing trend to

internalize display

marketing

• 2/3 of revenue is from

owned and Burda

assets

• Growth will continue

from 2014 on

Mobile advertising and topic specific content gain relevance


Source: Interviews, A.T. Kearney analysis, KPCG and GP Bullhound with data from the UN, Internetworldstats.com, eMArketer, IBM, Flurry, e-tailing group, ITU, Oxford Internet Surveys* Own estimation, extrapolation based on 2009/11 CAGR

19

10 1015 18

61

33

26 2322

20

56

6461

60

2005 2007 2009 2011 2012*

Ways to look for information onlinePercentage of users

Mainly specific pages

Both about the same

Mainly search

Internet, smartphone and mobile users worldwide, 2011In billion subscribers/users

6

1

2

MobileSmartphoneInternet

Exclusive Partnership #1 Financial App TOP 5 Vertical

January 2013

x 3

Transactions


65

40

76

11

GERDating Agency Adult Dating

Matchmaking Agency Other

Market overview*Dating and matchmaking in Germany 2012

Market driversOnline matchmaking

Market share & trend*Premium online matchmaking in Germany

� Market volume of online matchmaking

portals in Germany around EUR 76

million, in DACH around

EUR 94 million in 2012

� 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 range

expected

� Ongoing shift from offline to online

matchmaking

� Online matchmaking now widely

viewed as positive

ElitePartner is market leader in Matchmaking sector


* Own estimation

10%

70%

20%

200640%

28%

28%

4%

2012

ElitePartner Parship eDarling Other

January 2013

The European online travel market is growing above the US online travel market


3134

37 3942

5257 55 54 55

2008 2009 2010 2011 2012*

Europe

US

January 2013

� Online Travel in Europe with stronger upside

potential than US

Online penetration travel market Europe and US 2008-2012e*In percent

Business model, market position & USP‘s

Entity Market Position

USPBusiness Model

Strong local

content

Leading hotel

rating and

booking portal

for package

holidays in

GER + A + CH

Commission from

bookings of

package holidays

Strong local

content

Leading hotel

rating portal in

NL + B

Cost per action

and commission

Booking

technology

Leading OTA

for package

holidays in NL

Commission

Strong dynamic

packaging

technology

#4 OTA in

France

Commission

� Integration of new brands and platforms to form pan-

European market leader

Source: PhoCus Wright Inc.; * 2012: Own estimation

22.530.8

47.9

61.6

77.8

98.0

13.6 15.220.6 20.2 19.3

25.6

2008 2009 2010 2011 2012e 2013p

Revenue and EBITDA development is driven by both organic and inorganic growth


+ 33% p.a.

TFAG Revenues and EBITDA development in the travel segment*In EUR million

January 2013

Revenues

EBITDA

* including costs and revenues for internationalisation

• Strong double digit

growth

• 2012e and 2013p

includes revenues and

EBITDA from the

acquisitions

• 2010-2012 includes

organic growth

investments for

international (4-6 Mio

EUR p.a.)

• International expansion

gains speed through

expected synergies,

e.g., from content

sharing and dynamic

packaging technology

European online travel market growing faster than US-market; strong potential for dynamic packaging


107 107118

129137143

132139 145 146

2008 2009 2010 2011 2012*

Online travel bookings Europe and USIn EUR billion

Europe

US

Source: PhoCus Wright Inc., Own estimation; Interviews, A.T. Kearney analysis; * Own estimation, extrapolation based on 2008/11 CAGR

Dynamic packaging market development in FranceIn EUR million

Holiday Reviews Booking TechnologyDynamic Packaging

Technology

January 2013

20

75

145

196

237261

300336

370

2004 2005 2006 2007 2008 2009 2010 2011 2012

TOMORROW FOCUS with continuous increase in revenue and EBITDA


53.365.6

74.9 77.192.2

128.2135.9

150.0e

2005 2006 2007 2008 2009 2010 2011 2012e

* incl. adjustments

7.6 15.5 9.6EBITDA*Mio. Euro

2.4 24.0 21.412.6

4.8 11.7 5.7EBIT*Mio. Euro

0.4 15.9 16.88.9

27.3e

20.4e

+ 14.7% p.a.

+ 17.6% p.a.Revenues*in EUR million

January 2013

Core ratios ensure flexibility

35.7 45.7 52.9 59.2 52.040.0

64.3 54.3 47.1 40.8 48.060.0

12 2007 12 2008 12 2009 12 2010 12 2011 12 2012e

Equity ratio Debt ratio

3.9

15.4

21.4

27.3

2011 2012e

Net debt EBITDA

0.0

10.0

10.0

26.5

2013 2014 2015 2016


Notes

• Leverage offers cash-flow flexibility

• Long-term debt structure

• Equity ratio in target area of 40%

January 2013

Equity ratio vs. debt ratio 2007- 2012

In percent

Net debt vs. EBITDA 2011/2012In EUR million

Maturity of bank loans 2012 – 2016In EUR million

TOMORROW FOCUS vs peer group


EV/Revenues EV/EBITDA PER

Source: Consensus estimates Bloomberg, 9 January 2013

1.6

1.2

5.6

2.0

8.2

1.5

11.0

6.3

15.2

10.0

17.7

9.1

22.6

11.8

21.2

21.0

29.4

15.8

Peer group multiples and growth 2012 - 2014

8.7

3.0

17.7

12.3

18.2

14.1

17.6

4.3

21.1

14.3

17.8

27.2

30.6

6.4

19.5

15.7

18.7

31.1

Revenues EBITDA EPS

Valuation 2012e CAGR 12-14, in %

Median of the five

competitors presented

January 2013

Strategie 2015


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

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

Expansion of purely digital-based activities

in Advertising and Transactions

segments

Revenue and earnings targets 2015

� Revenue: EUR 250 million

� EBIT: EUR 30 – 40 million


Financial calendar 2013*

Date Event Location

27 March 2013 Publication of annual report 2012 Munich

08 May 2013 Publication of interim report 1Q 2013 Munich

12 June 2013 Annual General Meeting 2013 Munich, Haus der Bayerischen

Wirtschaft, Max-Joseph-Str. 5

08 August 2013 Publication of interim report 2Q 2013 Munich

08 November 2013 Publication of interim report 3Q 2013 Munich

* Provisional dates


TOMORROW FOCUS AG | Neumarkter Str. 61 | 81673 München

www.tomorrow-focus.de

www.twitter.com/tomorrowfocus

www.facebook.de/tomorrowfocus

www.youtube.com/tomorrowfocus

Contact

Armin Blohmann

Head of Group Communications & IR

+49 (0)89 9250-1256

[email protected]

Dirk Schmelzer

Chief Financial Officer

+ 49 (0)89 9250-2416

[email protected]

Sabine Minar

Consultant Group Communications & IR

+49 (0) 89 9250-1208

[email protected]


Disclaimer

January 2013Company presentation | Dirk Schmelzer

This presentation contains 'forward looking statements' regarding TOMORROW FOCUS AG or TOMORROW FOCUS GROUP,

including opinions, estimates and projections regarding TOMORROW FOCUS AG’s or TOMORROW FOCUS GROUP’s financial

position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve

known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements

of TOMORROW FOCUS AG or TOMORROW FOCUS GROUP to be materially different from future results, performance or

achievements expressed or implied by such forward looking statements.

These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may

or may not prove to be correct.

No representation or warranty, express or implied, is made by TOMORROW FOCUS AG or TOMORROW FOCUS GROUP with

respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein.

The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all

material information concerning TOMORROW FOCUS AG or TOMORROW FOCUS GROUP.

TOMORROW FOCUS undertakes no obligation to publicly update or revise any forward looking statements or other information stated

herein, whether as a result of new information, future events or otherwise.

tomorrow focus ag company presentation€¦ · company presentation | dirk schmelzer page 5 32.4...

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