PubliGroupe Full Year Results 2009 E

Connecting media, advertisers and customers

Year end 2009 ResultsYear end 2009 Results

Turning media sales business

d & i i di i laround & tapping into new digital

growth markets

1

www.publigroupe.com

Content

1. YE 2009 Key figures & main developmentsy g p

2. Group Strategy: Turning media sales business around &

tapping into new digital growth markets

3. Update per Business Segment

– Financial Results

Key Initiatives– Key Initiatives

4. Group Results

5. Strategy summary

6. Board of Directors

7. Outlook

2

1. YE 2009 Key figures & main developments

3

1. YE results 2009 – Main achievements

Last year, March 13 2009, we had defined the following priorities:

Degree of

achievement

� During 2009, we largely achieved these priorities

� Building the basis for growth and profitability

4

1. YE results 2009 – Main impacts

� Recession/structural market changes

– impact all, yet especially traditional and

print-oriented markets 2'500

2008 2009

Sales and GM, in CHFm

– PubliGroupe records -25% sales in print advertising

� Digitalization and online services

1'500

2'000

� Digitalization and online services

– drive sales and gain positive earnings momentum

– +22% sales in online services

(incl. minority participations) 0

500

1'000

� Financial results 2009

Group sales 24% to CHF 1 6bn 402008 2009

EBIT and Net profit, in CHFm

Net Sales Gross Margin

– Group sales -24% to CHF 1.6bn

– Gross margin -19% to CHF 362.1m

– EBIT -111% to CHF -4.5m

– Net result CHF -20.9m10

0

10

20

30

40

� No dividend for FY 2009-50

-40

-30

-20

-10

5

EBIT Net Profit

1. YE results 2009 – Main impacts

� Gross Margin represents the true economic value added Gross Margin 2009 in %� Gross Margin represents the true economic value added

by PG’s activities

[remark: PG turnover is representing ad spend volumes/“billings”]

Gross Margin 2009, in %

Media

Sales

Other

segments

� Accelerated structural shift of Gross Margin contribution

towards business segments representing growth

markets, decreasing dependency on PG’s traditional

Media Sales activities

47.5%52.5%

Media Sales activities

close to half of the Gross Margin contribution generated

by “non-Media-Sales”-related activities.

6

1. YE results 2009 – Timing of impacts

� Recession impacted results from 1HY 2008 onwards

– Gross margin erosion of CHF 84m in 2009

Cost reductions 2009 of CHF 55m at the price of CHF 11m one off costs– Cost reductions 2009 of CHF 55m at the price of CHF 11m one-off costs

– Initiated measures will allow for further cost reductions of CHF 38m in 2010

� Rapidly taken measures mitigate effect on EBIT, result in

– positive EBIT pro forma for 2HY 2009

– yet cannot prevent operational loss in FY2009

– FY2009 EBIT CHF -4.5m

50

70EBIT

EBIT pro forma

– FY2009 EBIT pro forma excl. one-time effects CHF -3.2m

10

30

50 EBIT pro forma

-30

-10

10

7

1HY 08 2HY 08 1HY 09 2HY 09 FY2008 FY2009

1. YE results 2009 – EBIT IFRS vs. EBIT pro forma

EBIT IFRS CHF -4.5m

Eliminating one-off gains from

– Divestments CHF 13.6m

– Participations CHF 7.3m

Eliminating one-off costs from

– Impairments CHF 8.3m

– Restructuring CHF 11.9m

Oth CHF 2

-30 -25 -20 -15 -10 -5 0

EBIT pro forma CHF -3.2m

– Others CHF 2m

30 25 20 15 10 5 0

EBIT pro forma best reflects effective operational performance

One-off effects

� have a negative effect of CHF 1.3m on EBIT IFRS

� have a negative effect CHF 5.4m on Net Result IFRS of CHF -20.9m

8

1. YE results 2009 – EBIT trends by segment

08 EBIT 09 EBIT

EBIT, in CHFm per Segment

� Recession and structural

changes in media landscape

mostly impacted results in more

traditional and especially print-

37.6

30 4

40

50

08 EBIT 09 EBIT

traditional and especially print-

oriented markets

� Online and transaction oriented

30.4

9.6

20

30

� Online and transaction oriented

markets continue to perform

solidly1.2

6.8

5 7

9.6

10

0

10

28 8

-5.7

-30

-20

-10

-28.8 -29.4

-40

30

Media

Sales

Custom

Publishing

Search

& Find

Digital &

Marketing

S i

9

Services

2. Group Strategy: Turning media sales business around &

tapping into new digital growth markets

10

2. Group Strategy Update – Underlying mega trends

1. Diverging growth in advertising market segments

Traditional media loose, while digital media gain market share

Swiss media spend 2002-2010 (f) Evolution of media mix, in %

36 7

5.90.5100%

CAGR

40%

5%4'000

Print Other traditional media Digital

44.2

36.7

60%

80%

2'000

3'000

49.862.7

20%

40%

0%1'000

0%

2002 2010

0

2002

2003

2004

2005

2006

2007

2008

2009

2010

11

Source GroupM


2. From display marketing to performance marketing

S&F and D&MS are well positioned in these growth segments

CAGR

16'000Display Search Affiliate

Online advertising spend in Western Europe, in EURm

+9%

1'1031'153 1'274

1'364

1'504

1'678

12'000

14'000

Display Search Affiliate

+8%6'049

6'223 6'4927'024

7'7898'732

1 153 1 274

8'000

10'000

-1%5'102

4'156 3'817 4'009 4'379 4'8422'000

4'000

6'000

4 156 3 817 4 009

0

2 000

2008 2009 2010 2011 2012 2013

12

Source: Estimates 2009 figures from PwC; IAB Europe/US/UK, OVK Germany, ZenithOptimedia, Jupiter Research


3. From advertising only to facilitating and participating in transaction volumes of

E-commerce Market

� Transaction drives performance marketing� Transaction drives performance marketing

� Performance marketing is benefiting from strong growth in e-commerce market

PubliGroupe strategy addresses both markets: Advertising + e-commerce

23'275

21209

25'000Advertising E-commerce

Evolution of Advertising vs. E-commerce in Germany, in EURm

17'79717'18716'72716'974

19'099

17'310

21209

15'000

20'000 CAGR

e-com merce

2009-2014:

11%

10'000

15 000 11%

0

5'000

13

2009 2010 2011 2012Source: Western European Online Retail, Forecast, 2009 to 2014, Forrester

2. Group Strategy Update – Tapping into Growth Markets

ADVERTISING OFFLINE:

� Classic Media

ADVERTISING ONLINE:

� Interactive Media

TRANSACTION:

� Performance Marketing

� Print Directories

� Customer Magazines

� Local Search � ROI Optimizing

TREND TREND TRENDTREND

� Global (-) / National (-) /

Local (++)

TREND

� Search Marketing /

Ad Networks / Rich

media / Mobile (++)

TREND

� E-commerce/

Brand Channels (+++)

Search & Find

Digital & Marketing Services

Media Sales

Custom Publishing

Interest Intent Purchase

Addressable market of PubliGroupe business segments

14

2. Group Strategy Update – Our claim

C ti di d ti d t

Market need for: PubliGroupe’s product and service offering

Connecting media, advertisers and customers

Media

Fragmentation of audience implies

� higher competition, price pressure

� change in market shares

Thi ll f

Enabling media owners to monetize their

audience with

� dynamic, dense and international sales network

� efficient and cost-saving digital workflows and

l tfThis calls for:

� pro-active sales

� process optimization and cost optimization

platforms

Advertisers Enabling advertisers to efficiently reach theirAdvertisers

Multiplication of marketing channels implies

� more complexity and more choice

This calls for

� support and guidance

Enabling advertisers to efficiently reach their

customers and optimize the ROI of their

marketing spend with

� performance marketing services across all media

� data-based tools to efficiently target, measure and pp g

� transparency

� performance optimization

� ROI optimization

y g ,

optimize marketing spends

C t E bli t ti ith t ithCustomers

always “on” behavior implies

� customized/personalized media consumption

� E-commerce propensity

� need for efficient search and transaction tools

Enabling transactions with customers with

� efficient local search platform

� transaction oriented digital marketing tools and

services

15

� need for efficient search and transaction tools

2. Group Strategy Update –Building the base for growth and profitability

Investments in

growth markets

Prime focus on:

Performance marketing,growth markets

Di t t f

Performance marketing,

Local Search, digital workflow platforms

Reduce debtDivestment of

non-core assets

Reduce debt –

Increase Investment capability –

Increase ROIC

Reorganisation

and cost

reduction

Align organisation to strategy –

Reduction of structures

and costs to mitigate risks

Strategy

Expand in digital services (local search & performance marketing)

Expand in marketing servicesStrategy

2007 2008 2009 2010

p g

Develop an all-media sales expertise

16

2007 2008 2009 2010

3. Update per Business Segment

17

Media Sales

18

3. Business Segments / Media Sales: Financial results

2'000� Recession and structural market

changes impact result

Sales, in CHFm

1'000

1'500

changes impact result

– Sales -25% to CHF 1.3 bn

– Gross margin -26% to CHF 204m

EBIT 2% CHF 29 4

0

500

– EBIT -2% to CHF -29.4m

2008 2009� Rapidly taken measures alleviate impact

– Headcount -317 FTE to 1430 FTE

– Cost reduction 2009 of CHF 48m and350

2008 2009

Gross Margin and EBIT, in CHFm

restructuring costs 2009 of CHF 9.6m

150

250

350

� New business model to restore profitability

in 2011

-50

50

150

19

50

Gross Margin EBIT

3. Business Segments / Media Sales: Key initiatives at a glance

� Implement transparent new business model p p

– based on modular sales services and

– efficient digital workflow solutions

� Leverage the unique sales network nationally and internationally

� Set-up three operational entities as from May 1, 2010p p y ,

– Sales Switzerland

– Sales International

L i i U i– Logistic Unit

20

3. Business Segments / Media Sales: Key initiatives

� Restore profitability as leading media

Publicitas:

Reliable partner

along the advertisement value chain

"Implement transparent new business model"

� Restore profitability as leading media

sales company with unique network

– Transparent market pricing based

on modular offerings

New

Service

Offering

New

Pricing

Digitization

of Processes

Efficient

Logistics

services

along the advertisement value chain

– No cross-subsidies

– Proactive sales efforts

– Enhance sales advisory services

Media Owner

across all media channels

� Establish industry-leading digital

workflow platforms

– Publicitas network: standardized,

efficient processes

– Market-wide platform: open up

solution for industry-wide use assolution for industry wide use as

neutral service provider

(Business process outsourcing)

M P bli it O li T l f l i d b ki

21

My Publicitas: Online-Tools for planning and booking


"Implement transparent new business model“ – well on track

Modular: Publisher may choose services and combineExclusive representation

New business modelTraditional business model

Modular: Publisher may choose services and combine

in several ways, including full outsourcingExclusive representation

vs. inhouse sales

„Regie- vs. Autoregie“

Cost / performance orientation, transaction feesFixed commission rate

(e.g. 11% on revenue)

� 3-year contract migration schedule

Restrictive reselling based on modular contractsUniversal reselling

– Full-service contracts

– Modular contracts

– Core bundle contracts

22


22 t i

“Leverage unique sales network nationally and internationally”

� 22 countries

47 offices on international level,

69 offices in Switzerland

an unparalleled media sales network

� Approx. 12'000 daily contacts with

220’000 advertising clients on regional,

national and international level + digital

sales channels (e-tools “myPublicitas”)

� Restructuring efforts underway

Nationally: Refocus service offerings– Nationally: Refocus service offerings

based on partner/client portfolio; Centralize

back-office functions; Maximize use of

digital platforms

– Internationally: Evaluate key network

locations;

reduce organizational complexity

23


“Set-up three operational entities”

As from May 1, 2010y

New CEO Media Sales:

Beat Roeschlin

Media Sales

P Sales Switzerland Logistics UnitP Sales International

24

Custom Publishing

25

3. Business Segments / Custom Publishing: Financial results

� Budget cuts in key industries

Sales 19% to CHF 24 6m

40

Sales, in CHFm

– Sales -19% to CHF 24.6m

– Gross margin -23% to CHF 9.9m

20

30

� EBIT of CHF -5.7m

– Despite tight cost control, expenses

increase due to build-up of London 0

10

increase due to build up of London

and Singapore offices

– Including Goodwill amortization

of CHF 2.7m

2008 2009

15

2008 2009


5

10

15

-10

-5

0

26

10

Gross Margin EBIT

3. Business Segments / Custom Publishing: Key initiatives at a glance

� Transition from "print-only" to “multi-channel marketing solutions“p y g

� Strengthen existing foothold in Asian airline vertical and selective� Strengthen existing foothold in Asian airline vertical and selective

expansion into other regions or verticals

27

3. Business Segments / Custom Publishing: Key initiatives

“From ‘print-only’ to

‘multi-channel marketing’”

Customer acquisition

solutions

� Strong expertise in customer magazines

Customer

� Evolution towards

– 360° marketing solutions around major brands in a

ifi i d t

Airport solutions

Customer

retention

solutions"360°"

specific industry

– Multimedia sales solutions

On board solutions /

entertainment

28

3. Business Segments / Custom Publishing: Key initiatives

“Strengthen existing foothold in Asian

Airline vertical and selective expansion into

th i ti l ”other regions or verticals”

� Broaden customer base to increase penetration in vertical "Airline"in vertical Airline

� Expand to other verticals, e.g. Travel

S l ti l d i t ti l� Selectively expand international presence alongside client portfolio

– Singapore

– LondonLondon

� Identify consolidation opportunities in highly fragmented market

29

Search & Find

30

3. Business Segments / Search & Find: Financial results

� Sales -4% to CHF 130.8m120

140

Sales, in CHFm

– On-line services grow 13%,

accounting for 30% of sales

– Print products decline 8.4%, 60

80

100

120

– Discontinued “Autobörse” and

“Fundgrueb” activity in CH

– Decline in France: -22.5% 0

20

40

� Gross margin -7% to CHF 101m

� EBIT -19% to CHF 30.4m; profitability to

increase in the future

2008 2009

120

2008 2009


increase in the future

� Online products need further investments to fully

counter-balance foreseeable decline of print60

80

100

120

� Goodwill amortization CHF 5.5m (Bégécom)

0

20

40

60

31

0

Gross Margin EBIT

3. Business Segments / Search & Find: Key initiatives at a glance

� Leverage #1 market position in Directories in Switzerland with

JV t S i i t l l h k tJV-partner Swisscom into local search market

� Expand presence in local markets in France building on #2 position

32

3. Business Segments / Search & Find:Key initiatives

“Leverage #1 market position in Directories in Switzerland with JV-partner Swisscom

into local search market”

20%25%

30%

2007 2008 2009

Migration Print to Online implies revenue structure shift PrintOnline

80%

25%

75%

30%

70%

3'000'000

Successful combination

of online properties under Number of clients of local.ch

1'000'000

2'000'000

3 000 000roof

0

1'000'000

kt 0

8

v 0

8

z 0

8

n 0

9

b 0

9

z 0

9

pr

09

ai 0

9

n 0

9

ul 0

9

g 0

9

p 0

9

kt 0

9

v 0

9

z 0

9

33

Ok

No

De

z

Ja

n

Fe

b

Mrz

Ap

Ma

Ju Ju

Au

g

Se

p

Ok

No

De

z

3. Business Segments / Search & Find:Key initiatives

“Leverage #1 market position in Directories in Switzerland with JV-partner Swisscom

into local search market”

� LTV is one of the most successful

online sales houses in CH

Online Revenue S&F CH

40

50

� Opportunities 2010

– Widen 'local search' offering on fixed

20

30

g

and mobile internet

("Go beyond directories")

– Deploy performance-based business

0

10

2007 2008 2009

models in local markets

(i.e. local ad-network)

34

3. Business Segments / Search & Find: Key initiatives

“Expand presence in local markets in France;

building on existing #2 position”

� Further integration of Amitel and Bégécom

activities, increase profitability and sales

ffi iefficiency

� Expand local.fr online presence, enter new

partnerships to develop reach more

i laggressively

� Strengthen online and mobile 'local search'

portfolio ("Go beyond directories")

35

Digital & Marketing Services

36

3. Bus. Segm. / Digital & Marketing Services: Financial results

DMS Sales, in CHFm

250

namics SVB

� Gross margin -7% from CHF 53.1m to CHF 49.4m

– Excellent development of performance marketing

portfolio

100

150

200

250p

– Joint-ventures zanox and Digital Window show

strong sales and margins

– Namics equals excellent 2008 performance

0

50

100

2008 2009

– SVBmedia affected by decline in traditional media

billings, rapid measures limit impact on gross-

margin and EBIT

2008 2009

2008 2009

� Sales -28% to CHF 155.6m due to SVBmedia

� EBIT +41% to CHF 9.6m

DMS Gross Margin and EBIT, in CHFm

30

40

50

20 2

DMS pro Forma EBIT*

– Digital activities contribute CHF 5.6m EBIT

– Pro Forma EBIT* increases by 31% to 20.2m CHF

– One-time EBIT gain CHF 4m (negative Goodwill

0

10

20

+ 41 %

+ 31 %15.4

20.2g ( g

due to increased stake in zanox)

EBIT

37

* DMS pro forma EBIT = EBIT before zanox/Digital Window Purchase price allocation, Interest and Tax

Gross Margin EBIT

3. Bus. Segm. / Digital & Marketing Services: Key initiatives at a glance

� Achieve market leadership position in Europe in p p p

"Online Performance Marketing“

� Extend marketing services scope, starting in Switzerland

38

3. Bus. Segm. / Digital & Marketing Services Key initiatives

zanox: FACTS & FIGURES

� Publishers/Affiliates: > 1 Mio.

� Advertisers: > 2000

“Achieve market leadership position in

‘Online Performance Marketing’ in Europe”� Advertisers: > 2000

� Generated sales > EUR 5 Bn

� Transactions per Day

– Views 360 Mio

� JVs (zanox, Digital Window, Buy.at) between

AXEL SPRINGER and PubliGroupe created

leading European Group in online affiliate Views 360 Mio

– Clicks 30 Mio

– Sales 60 000

– Leads 40 000

g p p

marketing since 2007

Sales 2009 , in EURM (compared with main competitor)

JV AS/PG

Trade Doubler

39

0 50 100 150 200 250 300 350

3. Bus. Segm. / Digital & Marketing Services Key initiatives

“Achieve market leadership position in ‘Online Performance Marketing’ in Europe”

� Realize growth with new zanox senior management based on vast international e-commerce experience gained at ebay, Microsoft, ciao.com, etc.

Philipp

Justus

Daniel

Keller

Christian

Kleinsorge

� Evaluate further market extensions

� Develop performance agency business, building on

i (100% d H b b d i )experience (100% zanox-owned, Hamburg-based unit)

40

3. Bus. Segm. / Digital & Marketing Services: Key initiatives

“Extend marketing services scope, starting in CH”

� Reposition digital marketing offering in Switzerland under roof of WEB2COM, including

zanox services

� Expand Namics premium client base in Switzerland and Germany

� Implement technology solution for p gy

sophisticated targeting and data

management services in test

market Switzerland

� e.g. Launch performance

ad network e.g.

in Q1-2010

41

4. Group Results

42

P&L Group

CHF Mio Change % 2009 2008

Revenue -24.1% 1609.1 2120.6

Gross margin -18.9% 362.1 446.3

Expenses -6.4% -354.2 -378.6

EBITDA 88 3% 7 9 67 7EBITDA -88.3% 7.9 67.7

EBIT - -4.5 40

Fi i l lt 94 0% 3 3 54 7Financial result -94.0% -3.3 -54.7

Net Result -50.4% -20.9 -42.1

43

Extraordinary items 2009

Net Result 2009 - Nominal -20.9

Divestments -12.9

Impairments 8.2

Restructuring 10.5

Others -0.5

Total non recurring elements 5.4

Net Result 2009 - Comparable -15 5Net Result 2009 - Comparable -15.5

Balance of non recurring items is a net loss of CHF 5.4 Mio

44

Cause of change

Net result A 2008

One Time Events 2008

-42.1

-46.2

Comparable A 2008

Gross margin

Expenses

-83.2

4.2

57.9Expenses

Depreciation

Associated -9.4

57.9

1.7

Financial result

Taxes

Minority interests

8.8

2.5

1.9

Comparable A 2009

One Time Events 2009

Net result A 2009

-15.5

-5.4

-20.9

• CHF 58 Mio cost reduction is not enough to compensate CHF 83 Mio (84 Mio nominal)

CHF Mio

Net result A 2009

-80 -70 -60 -50 -40 -30 -20 -10 0 10

20.9

45

g p ( )

Gross Margin decline

Comparable expenses by segment

CHF Mio % 2009 2008

S h & Fi d 7 3% 74 5 80 3Search & Find -7.3% -74.5 -80.3

Media Sales -17.6% -223.8 -271.7

Custom Publishing 10 7% -12 2 -11 0Custom Publishing 10.7% 12.2 11.0

Digital & Marketing Services -4.0% -46.0 -47.9

Corporate & Others -26.2% -32.4 -43.9

Comparable expenses -13.8% -362.1 -420.0

Non recurring elements -119.1% 7.9 -41.5

� All units have taken decisive cost reduction measures

Total expenses -23.3% -354.1 -461.5

� All units have taken decisive cost reduction measures

� 13.8% overall expense reduction on comparable basis

46

Comparable expenses 2007-2010

CHF Mio

27.8

28.8300

350� Decisive cost reduction efforts in

Media Sales and Corporate HQ

since mid 2008

-22.0

CHF Mio

-55.1

Media Sales HQ Corporate

21.7

19.2200

250

since mid 2008

� Overall cost reduction until 2010:

CHF 100 Mio + in these two units

-38.0

293.7271.7

223.8

188.3100

150

0

50

2007 2008 2009 B 2010

47

Number of employees evolution

FTE

2'900

3'000

3'100+31

FTE

� Significant but also selective

FTE reduction which is about to

continue in 2010

2'700

2'800

2'900continue in 2010

-385

2'973 3'003

2'6182'400

2'500

2'600 -114

2 618

2'505

2'200

2'300

2'400

2007 2008 2009 B 2010

48

Balance Sheet

In millions of CHF % 2009 2008

Current assets +10.8% 534.9 482.7

Non-current assets -31.3% 425.1 619.1

Total assets -12.9% 960.0 1'101.8

Current liabilities -33.2% 372.9 558.3

Long-term liabilities - 126.6 32.9

Equity, shareholders of PubliGroupe Ltd. -3.4% 416.8 431.3

Minority interests -44.9% 43.7 79.3 y

Total liabilities and equity -12.9% 960.0 1'101.8

Equity in % of assets 43% 39%

Net liquidity 4.8 -94.8

Bank debt 165.0 185.0

� The group's balance sheet remains solid

� The liquidity and debt structure were improved during 2009

49

Real Estate EBIT

CHF Mio

� Real estate reduction 2008 -

2010 with important

extraordinary gains40

45

50

Real Estate comparable One time elements

y g

� Stable situation from 2010

onwards

R i i tf li i t d42 9

25

30

35

40

� Remaining portfolio is mortaged

for group financing facility

42.9

15

20

25

7.84.5

6.3 5.1

6.15.5

0

5

10

2007 2008 2009 2010

50

Net financial result

CHF Mio 2009 2008

Result on loans and receivables 1.8 3.7

Result on marketable securities 4.2 -13.6

Result on available-for-sale securities -3.4 -36.4

Result on uncommitted net assets of employer's foundations 1.4 -2.3

Interest expenses -6.3 -8.7

Net currency exchange differences -1.0 2.6

Total -3.3 -54.7

51

Cash flow statements

CHF Mio Change 2009 2008g

Cash and cash equivalents as of 1 January - 6.5% 81.4 87.1

Cash flows from operating activities -8.7 43.8p g

Cash flows from investing activities 7.3 15.9

Cash flows from financing activities -22.1 -60.4

Effect of exchange rates 0.1 -5.0

Cash and cash equivalents as of 31 December - 28.7% 58.0 81.4

52

Consolidated statements of recognised income and expense

CHF Mio 2009 2008

Result -10.6 -29.8

Translation differences - -28.9

Net change in fair value of available-for-sale financial instruments 8.1 -29.9

Effective portion of changes in fair value of cash flow hedges -0.6 -

Changes in the other comprehensive income of associates - -0.1

Other comprehensive income 7.5 -58.9

T t l h i i 3 1 88 7Total comprehensive income -3.1 -88.7

53

Consolidated statements of changes in equity

CHF Mio 2009 2008

Balance as of 1 January 2009 510.6 662.6

Total comprehensive income -3.1 -88.7Total comprehensive income 3.1 88.7

Increase in additional paid-in capital 0.1 0.3

Purchase of treasury shares - -42.3

Sale of treasury shares - 7.3

Share-based compensation 1.7 0.4

Dividends -2.8 -29.7

Net change in minority interests -46.0 0.7

Balance as of 31 December 2009 460.5 510.6

54

5. Strategy Summary

55

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (I/VI)

Main focus 2010

� Implement Media Sales new business modelp

� Develop leading position of Search & Find in local search marketing

� Leverage competencies to offer customers and agencies efficient commercialLeverage competencies to offer customers and agencies efficient commercial

communication tools and services

Redefinition Strategy Business model Turnaround MS

Strategy

Redefinition

4 business

segments;

going digital

Strategy

implementation

& adaptation to

global crisis

Business model in Media Sales

Development of D&M Services in EUand S&F in CH; Crisis mitigation

Turnaround MS

No1 position in CH

local search market

Develop performance

marketing in CH

2007 2008 2009 2010

Crisis mitigation

56

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (II/VI)

� Achieved cost savings of CHF 55.1m in 2009

– CHF -47.9m in Media Sales alone

� Headcount reduction by 385 FTE

– Mainly at HQ and Media Sales

� Expected cost saving effect of CHF 38m in 2010

– CHF -35.5m in Media Sales alone

Reorgani-

sation and

cost

reduction

CHF -22m CHF -55m CHF -38m

2007 2008 2009 2010

57

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (III/VI)

� Ongoing divestment of non-core assets

– Real estate

Non core holdings of publishing houses– Non-core holdings of publishing houses

� Credit financing agreements

– Mortgage of CHF120m

CHF 90 di li ( b d d CHF 50 J 30)– CHF 90m credit line (to be reduced to CHF 50m June 30)

� Strong balance sheet with 44% equity ratio

� Debt reduced by CHF 20m to CHF 165m

� Target: maintain investment ability of CHF 50m plus

Real estate Real Estate 37% BAZ

Divestment

of non-core

assets

Real estate

Zürich

ea stateWinterthur

100% Stadt-anzeiger

3 %Medien

2007 2008 2009 2010

58

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (IV/VI)

� Performance marketing: Build the leading European online affiliate marketing group

together with Axel Springer

� Local Search: Build the no1 local search platform in Switzerland together with Swisscom

� Advertising market: Build an open end to end digitized interface between advertisers and� Advertising market: Build an open end-to-end digitized interface between advertisers and

media owners

Investments

in Growth

markets

2007 2008 2009 2010

59

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (V/VI)

Investments in

growth marketsgrowth markets

Di t t f Real estate: – Real estate 37% BAZDivestment of

non-core assets

Real estate:

Zürich

Real estate in Winterthur

– 100% Stadt-anzeiger Olten

37% BAZ

Medien

Reorganisation

and cost

reduction

CHF -22 Mio CHF -55 Mio CHF -38 Mio

Strategy

Expand in digital services (local search & perf. marketing)

Expand in marketing servicesStrategy

2008 2009 2010

p g

Develop an all-media sales expertise

60

2008 2009 2010

5. Strategy Summary: Turning media sales business around & tapping into new digital growth markets (VI/VI)

Online Revenues PubliGroupe, Online Revenues,

� Growing importance of online revenue

700

PG (excl. Zanox) zanox Digital Window Buy.at

140

MediaSales Search&Find DMS (excl.zanox)

p ,

in CHFm

,

in CHFm PG incl. participations

500

600

700

100

120

140

200

300

400

40

60

80

0

100

2007 2008 2009

0

20

2007 2008 2009

� Group participations generate close to CHF 600 Million online revenue

61

6. Board of Directors

62

6. Board of Directors: Two new members proposed for election to Board of Directors

� Mr Kjell Aamot, Oslo (NOR)

– Norwegian citizen, born in 1950

– President and CEO of Schibsted ASA, Oslo, from 1989 to Mai 2009. Schibsted AS is an international Media Group with a presence in 23 countries and with 7 250 employees. Mr Aamot has been in the Schibsted Group since 1977 and currently acts as consultant for its General Management.

Has a Master's degree of Business and Economics from the– Has a Master's degree of Business and Economics from the Norwegian School of Management (BI)

� Dr. Andreas M. Schönenberger, Zurich (CH)

– Swiss citizen, born in 1965

– Google's Country Manager for Switzerland for the last four g y gyears

– From 2003 to 2006, management consultant and vice president at Monitor Group Switzerland, where he built up the company's Swiss business

– Consultant at The Boston Consulting Group from 1998 to 2003

– Graduated in physics from the ETH in Zurich and then earned his doctorate at the ETH. He also has an MBA from London Business School.

63

7. Outlook

64

7. Outlook 2010

� Slight improvements of Group result stemming from growing presence in transaction-

oriented markets and further cost reductions

� Media Sales still in transformation process, returning to profitability in 2011

� Ongoing implementation of initiatives 2010 leading to changed Group profile with

– Decreasing dependency on classical media and advertising markets

G i f f b d k ti i– Growing focus on performance based marketing services

65

C ti di d ti d tConnecting media, advertisers and customers

Thank you for your attention

www.publigroupe.com

66

C ti di d ti d tConnecting media, advertisers and customers

Backup slides

67

Consolidated income statements

CHF Mio Change 2009 2008

Revenue - 24.1% 1'609.1 2'120.6

Purchases - 25.4% -1'175.2 -1'575.5

Sales reductions - 27.3% -71.8 -98.8

Gross margin - 18.9% 362.1 446.3

Personnel expenses - 8.4% -289.9 -316.6

General and administrative expenses - 14 9% -91 7 -107 7General and administrative expenses - 14.9% -91.7 -107.7

Other income and expenses - 40.0% 27.4 45.7

EBITDA - 88.3% 7.9 67.7

Depreciation and amortisation - 11.6% -13.0 -14.7

Impairment loss 8 2 33 8Impairment loss - -8.2 -33.8

Share in result of associates - 8.8 20.8

Operating result (EBIT) - -4.5 40.0

Financial result -3.3 -54.7

Result before income tax - 46.9% -7.8 -14.7

Income tax expense - 81.5% -2.8 -15.1

Result of continuing operations - -10.6 -29.8

Result from discontinued operations - -

Result - -10.6 -29.8

Result attributable to :

- Minority interests - 16.3% 10.3 12.3

- Shareholders of PubliGroupe Ltd - -20 9 -42 1

68

- Shareholders of PubliGroupe Ltd - -20.9 -42.1

Consolidated balance sheets

Assets

as of 31

Decembe

as of 31

DecembDecembe Decemb


Cash and cash equivalents - 28.7% 58.0 81.4

Marketable and available-for-sale securities - 65.8 8.8

Receivables, accruals and taxes receivables - 1.7% 385.8 392.5

Assets held for sale 25.3 -

C t t 10 8% 534 9 482 7Current assets + 10.8% 534.9 482.7

Land and buildings - 14.9% 83.0 97.5

Other tangible and intangible assets - 21.8% 54.3 69.4

Investments in associates 20 4% 255 8 321 5Investments in associates - 20.4% 255.8 321.5

Actifs financiers et impôts différés - 75.5% 32.0 130.7

Non-current assets - 31.3% 425.1 619.1

Total assets - 12 9% 960 0 1'101 8Total assets - 12.9% 960.0 1 101.8

69

Consolidated balance sheets

Liabilities and equity

as of 31

December

as of 31

DecemberDecember December


Short-term debts - 64.9% 65.0 185.0

P bl l d t bl 19 1% 297 4 367 6Payables, accruals and taxes payables - 19.1% 297.4 367.6

Long and short term provisions, deferred taxes - 2.6% 33.9 34.8

Long-term debts - 103.2 3.8

Total liabilities 15 5% 499 5 591 2Total liabilities - 15.5% 499.5 591.2

Share capital - 2.5 2.5

Treasury shares - 40.0% -53.2 -88.6

Reserves - 9 6% 467 5 517 4Reserves 9.6% 467.5 517.4

Equity, shareholders of PubliGroupe Ltd - 3.4% 416.8 431.3

Minority interests - 44.9% 43.7 79.3

Total equity - 9.8% 460.5 510.6q y

Total liabilities and equity - 12.9% 960.0 1'101.8

70

Cash flow from operating activities

CHF Mio 2009 2008

Result (10.6) (29.8)

Adjustments for non-cash items 8.4 60.1

Dividends paid to minority interests by group companies (46 7) (7 9)Dividends paid to minority interests by group companies (46.7) (7.9)

Dividends received 66.5 16.7

Interest received 1.6 3.7

Interest paid (5.8) (6.8)

Taxes paid (14.5) (15.7)

Use of provisions (5 0) (4 7)Use of provisions (5.0) (4.7)

Working capital changes (2.6) 28.2

Cash flows from operating activities (8.7) 43.8

71

Cash flow from investing activities

CHF Mio 2009 2008

Acquisitions of tangible assets (8.9) (19.0)

Disposals of tangible assets 17.5 66.4

Acquisitions of intangible assets (0.8) (1.8)

Disposals of marketable securities 0 2Disposals of marketable securities 0.2 -

Acquisitions of subsidiaries, net of cash acquired (4.8) (14.0)

Acquisitions of associates (15.8) (11.6)

Disposals of subsidiaries, net of cash disposed of 6.7 2.9

Disposals of associates 0.1 -

I t t i fi i l t (0 8) (15 8)Investments in financial assets (0.8) (15.8)

Divestments of financial assets 14.5 14.9

Taxes paid (0.6) (6.1)

Cash flows from investing activities 7.3 15.9

72

Cash flow from financing activities

CHF Mio 2009 2008

Increase /(decrease) in bank debts (120.0) 5.0

Increase in long-term debt 100.0 -

Contribution from minority interests - 0.5

Purchase of treasury shares - (42.3)

Sale of treasury shares 0 6 5 8Sale of treasury shares 0.6 5.8

Increase in additional paid-in capital 0.1 0.3

Dividend paid to shareholders of PubliGroupe Ltd (2.8) (29.7)

Cash flows from financing activities (22.1) (60.4)

73

Investor Relations

PubliGroupe Full Year Results 2009 E