Eniro Q2. Örjan Frid, CEO Fredrik Sandelin, CFO

Transcription

1 Eniro Q2 Örjan Frid, CEO Fredrik Sandelin, CFO

2 Table of Contents 1. Q2 financial update 2. Business Introduction 3. Natural Digital Marketing Partner 4. Local Guide for People and Business 5. Future opportunities & KPIs 6. Summary of recapitalisation plan

3 3 Highlights in Q2 Stabilizing customer base Continued cost control Adjusted EBITDA is in line with expectations, 66 MSEK (118)

4 4 Revenue bridge Q vs Q COMMENTS Revenues are down with 70 MSEK (-14%) to 426 MSEK Continued structural decline for Voice of 18 MSEK Print revenues increased in Q2 due to moved publications. All but one book has been published Less sales and prepaid revenues in 2016 compared to 2015, lead to lower revenues in Q Currency effect of +4 MSEK Remaining reduction is mainly an effect of lower sales in local search Revenue Q Desktop / Mobile Compl. Dig. Mkt. Prod. Print products Voice Revenue Q Complementary Digital Marketing Products has increased due to a broader focus on sales of 3rd party products compared to previous year

5 5 Revenue breakdown Q BREAKDOWN BY CATEGORY BREAKDOWN BY COUNTRY Digital search - Desktop/ Mobile 9 % Digital search - Complementary products 7 % 19 % Sweden Norway Denmark 12 % 35 % Print 10 % 64 % Poland 17 % Finland 27 % Voice

6 6 Key financials Q (MSEK) REVENUE AND RESULT Apr-Jun Apr-Jun Jul-Jun Jan-Dec SEK M / Operating revenue EBITDA Adjusted EBITDA Operating income Net income Cash flow from operating activities Interest-bearing net debt excluding convertible bond and pension obligations COMMENTS Revenue down -70 MSEK vs Q with EBITDA decreasing - 77 MSEK vs. prior year Like for like, cost is reduced with 44 MSEK compared to 2016, driven by Non comparable items connected to the legal dispute in Finland and costs for the recapitalization has a negative effect of 23 MSEK in Q Conservative application regarding capitalisation of development cost of 15 MSEK Headcount reduction

7 EBITDA margins declining EBITDA BREAKDOWN Apr-Jun Apr-Jun Jul-Jun Jan-Dec SEK M % % 2016/ Operating income Depreciation/amortization Impairment losses Total EBITDA Whereof Local search Whereof Voice Whereof Other EBITDA margin % 9,2 23,4 14,8 21,8 Items affecting comparability Restructuring costs Other items affecting comparability Total adjusted EBITDA COMMENTS EBITDA down -77 MSEK vs. prior year Lower EBITDA margins due to: Decline in Voice business Implementation of new IT systems delays larger cost reductions until 2018 Non comparable items, connected to the the legal dispute in Finland and costs for the recapitalization in Q numbers Adjusted EBITDA margin % 15,5 23,8 18,2 22,4 7

8 8 Development net debt / EBITDA R ,6 3,5 3,5 3,2 3,0 2,8 2, Q Q Net debt* EBITDA Net debt/ebitda 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0

9 Cash flow H CASH BALANCE PER JUN 30TH 2017 Jan-Jun Jan-Jun Jan-Dec SEK M Operating income Adjustments for Depreciation, amortization and impairment Capital gain/loss and other non-cash items Financial items, net Income tax paid Cash flow from operating activities before changes in working capital Changes in w orking capital Cash flow from operating activities Acquisitions/divestments of Group companies and other assets Investments in non-current assets, net Cash flow from investing activities Proceeds from borrow ings Repayment of borrow ings Long-term investments Dividend on preference shares Dividend non controlling interests Warrant incentive program Cash flow from financing activities COMMENTS Negative cash flow in H1: Cash flow during H1 was -8 MSEK (-48 MSEK) Available cash by end of June was 39 MSEK April Bond coupon -7,6 MSEK -11 MSEK - Payment to pledged bank funds for future obligations (PRI) Interest payments to banks in March and June Cash flow for the period Cash and cash equivalents at start of period Cash flow for the period 9 Exchange rate differences in cash and cash equivalents Cash and cash equivalents at end of period

10 10 Highlights from sales Customer base in core business is down with 4% in Q compared to 6% in Q Denmark had a neutral customer development in Q2 Revenues Q/Q down with 1% (Q vs Q1 2017) Complementary digital marketing products has had a positive development in Q2 and now make up 23% of the total OI

11 11 Highlights from sales, cont. Launch new business proposition telesales Sweden May 2 New proposition well received in market and well executed in sales organisation Field Sweden and Denmark scaling up in Sales Force as of now Norway expects to start in September Continued improvement of business proposition, website solution from our partnes Mono Solutions added in June Launch of Eniro på sjön in Finland June 2017, downloads so far

12 Table of Contents 1. Q1 financial update 2. Business introduction 3. Natural Digital Marketing Partner 4. Local Guide for People and Business 5. Future opportunities & KPIs 6. Summary of recapitalisation plan

13 13 Mission To digitize SME s in the Nordics

14 Introducing two new concepts to increase the value for customers and users The local media partner for small businesses The new Local Guide for people and businesses 14 Increase Customer loyalty and engagement Increase user usage of Eniro and connect users and customers

15 Table of Contents 1. Q1 financial update 2. Business introduction 3. Natural Digital Marketing Partner 4. Local Guide for People and Business 5. Future opportunities & KPIs 6. Summary of recapitalisation plan

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20 20 ENIRO NEW DIGITAL MARKETING SALES PACKAGES

21 21 Eniro will bundle and sell packages of other sites, such as Google and Facebook, adapted for the specific customer in an automated process

22 22 Roadmap Digital Products Nordics All launches include SE / NO / DK Partnership Yext Launch POC Marketing partner approach New value based offer Launched Netcheck Launch Discover Apps Online sales channel H Add on sales teams that sales the new offering Partnership Google Selected Bing Partner Launch Homepage H Offers supported by Marketing Automation & Nordic Display network Facebook & Instagram Ads H Full Online sales channel Transaction based offers Add on offerings and functions like, bookings, marketing, bots, video, AR etc. etc Target

23 23 New business model Recurring revenues, Subscription based offering Level of engagement, dialog and help more than hard sell towards Customers Driving towards Pay for performance, like bookings

24 Table of Contents 1. Q1 financial update 2. Business introduction 3. Natural Digital Marketing Partner 4. Local Guide for People and Business 5. Future opportunities & KPIs 6. Summary of recapitalisation plan

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27 27 Eniro Apps Local discoveries at your fingertips

28 28 Eniro app achievements: Step by step towards full discovery September: Discover nearby November: User tip March: Events

29 29 Local Deals Target nearby users

30 Table of Contents 1. Q1 financial update 2. Business introduction 3. Natural Digital Marketing Partner 4. Local Guide for People and Business 5. Future opportunities & KPIs 6. Summary of recapitalisation plan

31 Enables Eniro to monetise our Big Data Our knowledge of the user base will be used to make better services, provide rich customer experience and find new business revenues

32 Road to monetising Big Data 1 Collecting & Sharing Gathering data on user & customers Age, Gender, Locations, Search Intent, Clicks, etc 2 Enabling Building Eniro Genio Platform for Eniro Group & Commercial offerings including partners Driving Revenue Conversions Users Smart local data enabling exact targeting and personalized marketing, benefitting both users and customers 32

33 Eniro Group Development number of customers June Number of online customers (thousands) DK NO SE Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Note: Customers are counted on account level for SE, NO and DK

34 34 Status recapitalization plan AGM June 7 gave OK to recapitalistion plan proposed by Board of Directors In July 4 and July 26 the acceptance period for convertion of preferance shares and convertible s were prolonged New acceptance period August 25 Consortium of convertible owners holding 23 % entered into new negotiations with bank consortium to improve the new bankagreement, better interest rates and slower mortage plan, negotiations ongoing and the reason for prolonged acceptance period

35 Transaction step-plan 1 Offer to holders of preference shares and convertible bonds to exchange for common equity 2 Existing Bank Lenders exchange debt for equity in an amount of SEK 150 million 3 Cash issue of common equity of up to SEK 275 million to holders of existing common equity and others 4 Proceeds from cash issue used to amortize bank debt at a 50% discount. Banks committed to subscribe for any equity amount not covered by existing/new shareholders 1 35 Note: 1) In the event the cash issue is in any part subscribed for by the Banks, the Banks have committed to swap additional debt for equity in a supplementary rights issue to the extent required for debt to be reduced by SEK 550 million

36 36 Illustrative transaction impact (SEKm) Transaction costs Gross debt Debt reduction Net debt

37 37 Indicative timeline 7 June: AGM 8 June: Publication of prospectus for exchange offer 13 June 4 July: Acceptance period for exchange offer 6 July: Outcome of exchange offers 20 July: Publication of the terms of the Cash Issue 26 July: Publication of prospectus for the Cash Issue 27 July: Record date for participation in Cash issue 31 July 21 Aug: Subscription period for Cash issue Possible supplementary issue to the Lending Banks to compensate for the portion of the cash issue not subscribed for June July August/September September/October Post recapitalisation, the Group will have lowered its total debt with SEK 612 million New loan agreement entailing lower amortization and interest rate and adapted financial covenants For more detailed information regarding the transaction, please refer to the press release published on 3 April

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