2007 Half-Year Results. July 27, 2007

Transcription

1 2007 Half-Year Results July 27, 2007

2 Notice This document contains forward-looking statements. Although PagesJaunes Groupe believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: the effect of competition; PagesJaunes usage level; the success of the investments of the PagesJaunes Group in France and abroad. A description of the risks borne by the PagesJaunes Group appears in section 4 Facteurs de risques of the Document de Référence of PagesJaunes Groupe S.A. filed with the French financial markets authority (AMF) under the number R on March 27, The forward-looking statements contained in this document apply only from the date of this document, and PagesJaunes Groupe does not undertake to update any of these statements to take account of events or circumstances arising after the date of the said document or to take account of the occurrence of unexpected events. The presented information is unaudited. 2

3 Agenda Highlights Revenues Results Targets Appendices 3

4 Agenda Highlights Revenues Results Targets Appendices 4

5 Printed directories Revenues: Recruitment of new advertisers Decrease in average revenue concentrated on Paris and some departments Boost to communication and visibility of printed media: Expanded distribution (selective distribution tests and all-address distribution operations) Two waves of TV advertising Outlook: Sale of new advertising products La Une and Le Dos Introduction of Tags in PagesJaunes directories Change in charging structure 5

6 Internet Continuation of double-digit growth in the audience of pagesjaunes.fr: Number of unique visitors (1) : +18% in June 2007 compared to 2006 Sixth most consulted Internet site in France with 10.8 million unique visitors Outlook: Extension of 3D business search and location service Deployment of 42,000 sites on mobile handsets Increase in number of advertisers benefiting from link between annoncesjaunes.fr and pagesjaunes.fr Scheduled autumn launch of new pagesjaunes.fr with improved ergonomics and greater depth of results Change in charging structure (1) Source: Nielsen//Netratings June

7 Optimisation of the mixed business model: Increase in advertising revenue share, with more than 80,000 advertisers at the end of June 2007 Reduction in advertising expenditure compared to 2006 Increase in call charges Outlook: Enriching of content (for example Allociné) Close to breakeven in

8 Internet small ads Steady growth in activity: 618,000 unique visitors (1) in June ,000 real-estate and vehicle advertisements online as at end-june 2007 Over 4,000 advertisers recruited at end-june 2007, due mainly to sales blitz by the PagesJaunes sales force in the first quarter Formation of a dedicated sales force Strategic partnership with the M6 Group: Acquisition by the M6 Group of a 34% holding in the capital of PagesJaunes Petites Annonces for 16 million by way of an increase in capital Acceleration of the development of annoncesjaunes.fr thanks in particular to the prominence given to annoncesjaunes.fr on the M6 media (1) Source: Nielsen//Netratings June

9 Other subsidiaries / businesses QDQ Media: Partnership with Ebay in Spain with incorporation of Ebay stores into Info+ sites of QDQ.com Madrid and Barcelona in 3D goes online Partnership with Telegate in telephone directory enquiry services Mappy: New ergonomics for website Launch of MappyMobi on mobiles Kompass: Divestment of Kompass businesses on March 14, 2007 Consolidated capital gain on disposal of 33 million 9

10 Optimisation of performance Operating activities: Measures to boost printed directories From 2008, new charging policy to take fuller account of differences observed in use of printed directories and pagesjaunes.fr depending on housing type Support functions: Creation of purchasing and performance Department (centralisation and renegotiation of purchase contracts) Negotiation of multi-year contracts for publishing costs of printed directories 10

11 Agenda Highlights Revenues Results Targets Appendices 11

12 Consolidated revenues (in m) Eliminations and intersegment Consolidated total PagesJaunes in France % International & Subsid. (1) Eliminations and intersegment Consolidated total H H Change PagesJaunes in France % International & Subsid. (1) % (2.6) (2.6) (3.1) (3.1) % 6.1% 8.5% 16.5% 6.4% On actual publication basis On constant publication basis Growth in line with 2007 financial targets (1) Excluding Kompass France and Kompass Belgium, companies divested by the Group in March

13 Revenues of the PagesJaunes in France segment (in m) H H Change Printed directories % Fall concentrated on Paris and some major cities of which PagesJaunes (1) % of which L Annuaire (1) % Online services % of which Internet (2) % of which Minitel % na Liberalisation of market in second quarter of 2006 Others % PagesJaunes in France % Discontinuation of sale of online database access (1) The technical expenses billed in respect of printed directories were previously allocated in full to the PagesJaunes directory. They are now allocated to the PagesJaunes and l Annuaire directories as appropriate. The breakdown in revenues between PagesJaunes and l Annuaire has accordingly been adjusted in respect of the first half of 2006, with a negative impact of 0.9 million on the revenues of the PagesJaunes directory and a positive impact of 0.9 million on those of l Annuaire in the first half of (2) pagesjaunes.fr and Internet sites 13

14 Revenues of the International & Subsidiaries segment (in m) Constant publication basis Direct marketing and geographic services Small ads H H Change BtoC directories % % of which QDQ Media % of which Others % Kompass businesses % na Publication timing differences at QDQ 29% rise in revenues of QDQ.com Divestment of Kompass France and Kompass Belgium (1) International & Subsidiaries % First billing in 2 nd quarter constant pub. basis % (1) In accordance with international accounting standards (IFRS 5), the revenues from the Kompass businesses are stated separately from the continuing businesses on a divested businesses line at the foot of the income statement, both for the financial data for the current year and for the data for the previous year on a comparative basis. 14

15 Agenda Highlights Revenues Results Targets Appendices 15

16 Income statement of the PagesJaunes in France segment (1) (in m) H H Change Revenues % External purchases (126.4) (116.2) -8.1% Other operating income and expenses (5.3) (3.8) -28.7% Salaries and charges (123.7) (133.7) 8.1% GOM % GOM / Revenues 44.9% 48.6% Sharp reduction in costs of , and limited impact of expenditure to boost printed directories (1) Including holding company expenses of PagesJaunes Groupe SA 16

17 Income statement of the International & Subsidiaries segment (in m) Revenues on constant publication basis External purchases Salaries and charges GOM H H Change Revenues % Other operating income and expenses 33.8 (18.7) (18.5) (1.2) 36.7 (25.0) (21.4) (11.9) 8.5% 34.1% 0.3 (2.2) na 15.9% GOM on constant publication basis (2.0) (11.9) na GOM affected by annoncesjaunes.fr launch costs and publication timing differences at QDQ Media na 17

18 Consolidated operating income of PagesJaunes Groupe (in m) H H Change GOM % Employee profit-sharing (5.8) (7.2) 23.6% Share-based payment (2.0) (6.5) na Depreciation and amortisation (5.8) (6.9) 19.0% Others (0.3) 0.1 na Operating income % 18

19 Consolidated net income of PagesJaunes Groupe (in m) H H Change Operating income % Financial result 7.6 (67.3) na of which financial income na of which financial expenses (0.9) (69.8) na Corporation tax (70.5) (54.2) -23.1% Net income from continuing businesses % Net income from divested businesses (1) na Net income % (1) Kompass France and Kompass Belgium divested on March 14,

20 Change in cash position (in m) H H Change GOM % Employee profit-sharing (5.8) (7.2) 23.6% Change in working capital requirement 74, % Acquisition of tangible and intangible fixed assets (20.1) (9.0) -55.1% Operating cash flow % Financial result (disbursed) / received 7.7 (54.6) ns Non-monetary items included in GOM (0.6) 1.0 ns Corporation tax paid (85.7) (53.3) -37.8% Cashflow net % Increase (decrease) in long-term borrowings, bank overdrafts and current borrowings ns Decrease (increase) in deposits and other assets ns Capital increase % Dividends paid (284.0) (303.1) 6.7% Others % Net increase (decrease) in cash position (75.3) (44.3) -41.2% Lower profit-sharing disbursement following new agreement in 2006 Acquisition expenses for L Annuaire in 2006 Operating cash flow positively impacted by return to normal of investments and improved working capital requirement 20

21 Net debt (in m) 12/31/ /30/2007 Hedging instruments Short-term investments > 3 months and < 1 year Cash and cash equivalents Cash assets Bank loan (1,950.0) (1,968.0) Debt-related expenses Liabilities in respect of hedging instruments (8.3) (8.0) Accrued interest not yet due (5.6) (5.5) Bank overdrafts (7.5) (13.4) Other financial liabilities (15.3) (5.3) Gross financial debt (1,939.4) (1,955.9) Net cash (debt) (1,866.6) (1,901.7) GOM 12 months (1) Gearing (net debt / GOM) Interest on financial liabilities (56.4) Average interest rate (2) 5.77% (1) GOM adjusted in respect of Kompass businesses in 2006 (2) Average cost of debt: interest on financial debt stated in first half of 2007 as proportion of average of bank loans and overdrafts between December 31, 2006 and June 30, 2007 and annualised 21

22 Agenda Highlights Revenues Results Targets Appendices 22

23 Financial targets 2007 Consolidated revenues: +5-7% on a like-for-like basis growth expected to be in the middle of the range Consolidated GOM: +2-4% taking into account the investment in Internet small ads, the relaunch of the printed directories and the launch of the new version of pagesjaunes.fr growth expected to be at the upper end of the range Dividend distribution rate: 100% (1) (1) This target in no way constitutes a commitment on the part of PagesJaunes Groupe. Future dividends will depend on the Group s results, its financial situation and any other factor which the Board of Directors and the shareholders of PagesJaunes Groupe deem relevant 23

24 Agenda Highlights Revenues Results Targets Appendices 24

25 Consolidated income statement (in m) H H Change Net revenues % External purchases (142.4) (138.1) -3.0% Other operating income % Other operating expenses (10.7) (10.4) -2.4% Personnel expenses: - Salaries and charges (142.2) (155.1) 9.1% Gross operating margin % -Employeeprofit-sharing (5.8) (7.2) 23.6% -Share-basedpayment (2.0) (6.5) ns Depreciation and amortisation (5.8) (6.9) 19.0% Result of asset disposals (0.3) 0.0 ns Cost of restructuring and other items (0.0) 0.1 ns Operating income % Financial income % Financial expenses (0.9) (69.8) ns Result of disposal of financial assets and other items ns Financial result 7.6 (67.3) ns Corporation tax (70.5) (54.2) -23.1% Net income from continuing businesses % Net income from divested businesses (1) ns Net income of the consolidated group % (1)In accordance with international accounting standards (IFRS 5), the revenues and expenses of the Kompass businesses are stated separately from the continuing businesses on a divested businesses line at the foot of the income statement, both for the financial data for the current year and for the data for the previous year on a comparative basis. 25

26 Consolidated revenues (in m) Q Q Change Q Q Change Change on constant publication basis Printed directories % % -1.0% of which PagesJaunes (2) % % -0.5% of which l'annuaire (2) % % -2.6% Online services % % 17.6% of which Internet % % 24.5% of which Minitel % % -27.8% directory enquiries % % 123.9% Other revenues % % -12.4% Total of PagesJaunes in France % % 6.3% B to C directories % % 8.5% of which QDQ Media % % 6.9% Kompass businesses (1) Small ads ns ns 0.0% Direct marketing and geographic services % % 6.8% Total International & Subsidiaries (1) ,2 3.9% % 8.5% Inter-segment (1.2) (1.2) -5.8% (2.6) (3.1) 16.5% 16.5% Group total (1) % % 6.4% (1) In accordance with international accounting standards (IFRS 5), the revenues of the Kompass businesses are stated separately from the continuing businesses on a divested businesses line at the foot of the income statement, both for the financial data for the current year and for the data for the previous year on a comparative basis. (2) The technical expenses billed in respect of printed directories were previously allocated in full to the PagesJaunes directory. They are now allocated to the PagesJaunes and l Annuaire directories as appropriate. The breakdown in revenues between PagesJaunes and l Annuaire has accordingly been adjusted in respect of the first half of 2006, with a negative impact of 0.9 million on the revenues of the PagesJaunes directory and a positive impact of 0.9 million on those of l Annuaire in the first half of

27 Income statement by segment (in m) PagesJaunes in France segment International & Subsidiaries segment H H Change H H Change Net revenues % % External purchases (126.4) (116.2) -8.1% (18.7) (25.0) 34.1% Other operating income % ns Other operating expenses (10.4) (9.7) -6.8% (1.2) (3.0) ns Salaries and charges (123.7) (133.7) 8.1% (18.5) (21.4) 15.9% Gross Operating Margin % (1.2) (11.9) ns 27

28 Cash flow statement (in m) H H Consolidated net attributable income Non-monetary impacts Change in working capital requirement Dividends and interest income received Interest paid and net derivative rate effect (0.2) (56.5) Taxes paid (85.7) (53.3) Net cash from operations Acquisition of tangible and intangible fixed assets, net of income from disposals and the change in suppliers of fixed assets (19.6) (10.1) Acquisitions of investment securities and subsidiaries, net of cash acquired (2.0) 0.0 Income from disposals of financial assets, net of cash divested Decreases (increases) in marketable securities and other financial assets Net cash used in investing activities (0.9) 23.7 Increase (decrease) in bank overdrafts and borrowings Movements in own shares Capital increase Dividends paid (284.0) (303.1) Net cash provided by (used in) financing activities (273.1) (284.6) Net increase (decrease) in cash and cash equivalents (75.3) (44.3) Effect of changes in exchange rates on cash (0.0) (0.0) Net increase (decrease) in cash position (75.3) (44.3) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

29 Organigram & breakdown of share capital PagesJaunes Groupe PagesJaunes SA B2C directories 100% 100% Mappy Geographic services QDQ Media B2C directories in Spain 100% 100% PagesJaunes Marketing Services Direct marketing Edicom B2C directories in Morocco PagesJaunes Outre-Mer* B2C directories 100% 100% 100% 100% 49% PagesJaunes Petites Annonces Online small ads Eurodirectory Editus Luxembourg B2C directories * Non-consolidated in 2006 Breakdown of share capital as at 31/12/2006 Number of shares % of capital and voting rights Médiannuaire 153,640, % France Télécom employees 7,373, % PagesJaunes Group employees 1,152, % Public 118,099, % Treasury shares 0 0.0% Total 280,266, % 29

30 Glossary Constant publication basis: the publication schedule of the printed directories of QDQ Media for the first half of 2007 is not identical to that of the first half of To allow a comparison between the respective first-half figures for the revenues from printed directories of QDQ Media, the 2007 publication schedule for this entity has been applied to the 2006 financial year. Gross Operating Margin (GOM): revenues less external purchases, operating expenses (net of operating income) and salaries and social charges. The salaries and social charges included in the gross operating margin do not include employee profit-sharing or the cost of share-based payment. Reach rate: number of Internet users visiting the site at least once in the month in question as a proportion of the actual number of active Internet users during this period - Source: Nielsen//Netratings Home & Work domain ranking June Net financial debt: total gross financial debt plus or minus derivative asset and liability instruments for cash flow hedging and minus cash and cash equivalents including mutual fund units. 30