PagesJaunes Groupe Annual Results February 3, 2005

Transcription

1 PagesJaunes Groupe Annual Results 2004 February 3,

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 4.9 Analyse des risques du Groupe of the Document de Base of PagesJaunes S.A. filed with the French financial markets authority (AMF) under the number I on June 3, A description of the objectives of the PagesJaunes Group appears in chapter VII of the Document de Base. 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. Unless stated otherwise in this presentation, all the accounting data e presented on an unaudited pro forma consolidated basis (including ed basis (including PagesJaunes S.A., Kompass France, QDQ Media, S.A., Wanadoo Data and Eurodirectory S.A.); QDQ Media and Mappy have been consolidated with effect from their date of entry in the e France Telecom consolidated group and the pro forma financial data Annual results February 3,

3 I PagesJaunes Groupe Significant events Michel Datchary Chief Executive Officer 3

4 I 2004 results exceed targets Consolidated revenues up 7.3% against target of 4-6% EBITDA (1) of PagesJaunes in France of million against target of 400 million EBITDA (1) loss of International & Subsidiaries segment cut by two-thirds Net attributable income up 25% Proposal to distribute entire net income of the subsidiary carrying out the activities of PagesJaunes in France: 0.93 per share (2) (1) Earnings before interest, tax, depreciation, amortisation and employee profit-sharing (2) Proposal of Board of Directors to General Meeting of Shareholders Annual results February 3,

5 I Growth of PagesJaunes in France Growth rates of revenues of PagesJaunes, GDP and the advertising market in France (1) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% Advertising market GDP PagesJaunes(2) PagesJaunes has outperformed the growth of the advertising market in France in the last 4 years (1) (1) Source: France Pub (October 2004) and PagesJaunes Groupe (2) Advertising revenues only (excluding QuiDonc and sale of online access to databases) Annual results February 3,

6 I Acquisition of new advertisers and retention rate Acquisition of advertisers in France (in thousands) Retention rate (1) of PagesJaunes in France % 86,4 89,1 82,1 86,0% 85,5% 86.5% Increased advertiser acquisition rate and stable retention rate (1) Number of customers advertising with the company in year n-1 who continued their commercial relationship with the company in year n Annual results February 3,

7 I Rise in the number of print and Internet advertisers Number of advertisers in printed directories and Internet services of PagesJaunes in France (in thousands) % + 3.5% % Total Printed directories Internet services 20% penetration rate (1) in 2004: +1 point (1) Number of advertisers using at least one of the platforms of PagesJaunes to promote their products or services as a proportion of the potential market targeted by the company i.e. 2.9 million businesses Source: Agence des PME, INSEE 2001 Annual results February 3,

8 I Favourable trend in the advertiser mix of PagesJaunes in France Advertiser mix in 2003 Advertiser mix in 2004 Print Print 28.5% 28.0% 22.5% 4.0% 17.5% 4.5% 40.0% 44.0% 1.5% 1.0% 1.5% 1.5% 2.5% 3.0% Minitel Internet Minitel Internet Total number of advertisers: 561,180 Total number of advertisers: 583,836 Almost 1 advertiser in 2 is a customer of the printed directory and pagesjaunes.fr Annual results February 3,

9 I Positive trend in the ARPA (1) of PagesJaunes in France Trend in the ARPA (1) of PagesJaunes in France (euros) % % % Total Printed directories Internet services (1) Average revenue per advertiser Annual results February 3,

10 I Large audience for the services of the PagesJaunes Group in France Reach rate (1) (%) Dec /3 of people in France use printed directories (2) 50% growth in audience of pagesjaunes.fr (3) Dec million visits to online directories in December 2004 (4) Mappy.com Pagesjaunes.fr (1) Source: Nielsen / Netratings 2004 Brand (2) Source: ISL / Crédoc barometer 2004 (3) Source: Cyberestat Médiamétrie. Average number of monthly visits in 2003 and 2004 (4) 36 million on pagesjaunes.fr + 15 million on PagesJaunes 3611 (Minitel) Annual results February 3,

11 I Steady growth in printed and online directories in France Annual rate of revenue growth of PagesJaunes in France (in %) Annual growth of revenues from online services (in %) 22.2% 39.9% 35.8% 46.6% 11.1% 12.4% 5.4% 3.9% 4.0% 2002/ / / % -7.6% -8.2% 2002/ / /2003 Printed directories Online services (1) Minitel Internet + Websites Online services: 28% of 2004 revenues of PagesJaunes in France (1) Minitel + Internet + Websites Annual results February 3,

12 I Main indicators of QDQ Media Number of advertisers of QDQ Media (in thousands) ARPA (1) of QDQ Media (in euros) % x Advertisers Internet advertisers Growth of QDQ.com and continued rationalisation of customer portfolio (1) Average revenue per advertiser Annual results February 3,

13 II PagesJaunes Groupe Financial results Jean-Claude Peltier Financial Director 13

14 II PagesJaunes Groupe: growth in revenues and profitability Consolidated revenues (in millions of euros) Consolidated EBITDA (1) (in millions of euros) +7.3% % International & Subsidiaries PagesJaunes in France International & Subsidiaries PagesJaunes in France (1) Earnings before interest, tax, depreciation, amortisation and employee profit-sharing Annual results February 3,

15 II PagesJaunes Groupe: operational leverage Growth in EBITDA (1) of PagesJaunes Groupe (in millions of euros) EBITDA 2003(1) Revenues Cost of services Commercial expenses PagesJaunes in France Other items Revenues OPEX EBITDA 2004(1) Intl & Subs Positive contribution (1) Earnings before interest, tax, depreciation, amortisation and employee profit-sharing Negative contribution Annual results February 3,

16 II PagesJaunes in France: trend in main costs Decrease of 8.8% in costs of services and products sold in 2004 (20.8% of revenues) Slight decrease in volumes (paper, printing, delivery) Favourable price effect, particularly on paper Control of other editorial costs (websites, etc.) Rise of 8.4% in commercial expenses (27.9% of revenues) Increase of 10.4% in the sales force Control of advertising investment Control of management costs and provisions for bad debts Discontinuation of annual fee to Havas ( 9.1 million in 2003) Annual results February 3,

17 II International & Subsidiaries: start of recovery at QDQ Media Revenues of QDQ Media (in millions of euros) EBITDA (1) of QDQ Media (in millions of euros) % % Return to growth and reduction in costs (1) Earnings before interest, tax, depreciation and amortisation Annual results February 3,

18 II International & Subsidiaries: financial results of QDQ Media Improvement in commercial productivity 27% growth in average revenue per advertiser Revenues of QDQ.com doubled to 3.5 million 31% reduction in editorial costs Economies on paper purchases and printing costs Control of corporate costs Full-year impact of reduction of almost 100 in office-based staff at end of 2003 Optimisation of layout of directories Partial insourcing of production processes Control of marketing expenditure Annual results February 3,

19 II International & Subsidiaries: situation of other subsidiaries (Kompass France) Revenues (1) : +2.1% ( 24.7 million) Rise in number of advertisers Revenues (1) : +4.9% ( 11.5 million) Successful selling of new direct marketing services Revenues (1) : +15.4% ( 3 million) Fees received for use of geographic services platform EBITDA (2) of 2.1 million in 2004 (1) Contributive revenues (2) Earnings before interest, tax, depreciation and amortisation Annual results February 3,

20 II International & Subsidiaries: structure effects in (1) revenues 2004 (1) EBITDA(3) Proportional consolidation of Editus Luxembourg (49%) 8.3 (2) 3.5 (2) Consolidation of Kompass Belgium Project under way to acquire Télécontact (Morocco) Total 2004 (M ) (1) Provisional unaudited figures in millions of euros (2) 49% of total revenues and EBITDA (3) Earnings before interest, tax, depreciation and amortisation Annual results February 3,

21 II Formation of consolidated net income in 2004 From operating income (1) to net income (2) in 2004 (in millions of euros) including 4.6 million additional tax Operating income Corporate income tax Non-op. charges Financial income Other items Net income(3) Positive contribution Negative contribution (1) Operating income after employee profit-sharing (2) Net income before goodwill amortisation (3) Before goodwill amortisation Annual results February 3,

22 II Movements in cash and cash equivalents Movements in cash and cash equivalents of PagesJaunes (in millions of euros) including 72 million tax payable Cash & cash equiv. at end 2003 Cash flow (1) Change in working capital requirement Investments Dividend Capital increase & other items Cash & cash equiv. at end 2004 Cash & cash equiv., balance of tax paid Positive contribution Negative contribution (1) Cash flow = EBITDA employee profit-sharing corporate income tax + financial income Annual results February 3,

23 II Initial analysis of the impact of IFRS standards in 2004 Estimated impact Stock options and offerings reserved for personnel Goodwill amortisation Impact of around - 20 million Discontinuation of amortisation (1) Capitalisation of R&D expenditure Recognition of revenues Financial lease contract Pension and similar commitments Not expected to have significant impact on income Financial instruments Impairment of fixed assets (1) Goodwill will still be subject to impairment tests Annual results February 3,

24 II Initial analysis of the impact of IFRS standards in 2004 No significant impact on: the Group s strategy the Group s activity cash flow distribution potential Preliminary IFRS 2004 results mid-april 2005 Annual results February 3,

25 III PagesJaunes Groupe Outlook Michel Datchary Chief Executive Officer 25

26 III Continued strategy of profitable growth Developing the audience Stimulating revenue growth Profitable growth Pursuing operational excellence Annual results February 3,

27 III Outlook for growth in printed directories in France Revenues: Improvement in penetration rate and average budget per advertiser Gradual opening up of regulated professions Development of uses: Users on the move: extension of pocket directories to Lille, Lyons and Marseille Brand awareness: national and local communication campaigns Universal directory: Inclusion of mobile numbers Harmonised marketing of printed products Annual results February 3,

28 III Outlook for growth in Internet services in France Growth levers: Conversion of Minitel advertisers Growth in audience for online services Development of efficiency measurement Enrichment of content and services: Promising start-up of new website offering Recherche à proximité (local area search towns) Ville en direct (weather, town plans, photos, webcams, traffic) For people on the move: Optimisation of localised search services Presence of PagesJaunes services on portals of 2.5G and 3G mobile operators Annual results February 3,

29 III Strengthening of commercial resources in France Potential for development of customer portfolio: Increase in pre-sale campaigns Continued measurement of effectiveness of advertising investment Support for new offerings Potential for acquisition of new customers: Growth in commercial workforce Deployment of field sales channel for prospects Development of telesales for prospects Annual results February 3,

30 III Plan to launch directory enquiries service in France Market estimated at 270 million calls per year (1) Evolving regulatory environment PagesJaunes: numerous competitive advantages Natural extension of PagesJaunes multi-platform strategy Effective launch of service in fourth quarter of 2005 No significant revenues in 2005 Advertising investment from 2005 Growth lever in 2006 (1) Source: PagesJaunes Groupe Annual results February 3,

31 III Outlook for the International & Subsidiaries segment Continued recovery and reduction of EBITDA (1) loss Growth in revenues Improved commercial productivity Development of Directory assistance (France, Belgium, Spain, Morocco) Development of Internet revenues Improvement in commercial productivity Development of new offerings Development of marketing database hosting Growth in revenues outside PagesJaunes Groupe Income stream from audience of mappy.com (1) Earnings before interest, tax, depreciation and amortisation Annual results February 3,

32 III Financial targets Consolidated revenue growth of 5-7% in 2005 Consolidated EBITDA (1) growth more than 10% excluding directory enquiries service in 2005 Reaffirmed target of EBITDA (1) at breakeven at QDQ Media by end of 2006 Maintained target of distributing entire net income from Group s operating activities in respect of 2005 (2) (1) Earnings before interest, tax, depreciation and amortisation (2) 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 Annual results February 3,

33 Appendices 33

34 A Pro forma income statement In millions of euros PagesJaunes Group Revenues Cost of services and products sold Commercial expenses Administrative expenses Research and development expenses EBITDA (Earnings before interest, tax, depreciation and amortisation) as % of revenues Depreciation and amortisation (excluding goodwill) (213.1) (301.1) (55.3) (1.1) % (10.3) Periods ending December (234.9) (292.4) (54.0) (1.7) % (12.6) Change 2004/ % -9.3% 3.0% 2.4% -37.6% 23.7% -18.1% Operating income % as % of revenues 41.0% 35.1% Financial income (expenses), net % Other non-operating income (expenses), net (9.6) (3.1) 206.2% Corporate income tax (148.8) (123.4) 20.5% Employee profit-sharing (29.9) (26.9) 11.4% Share in net income of companies accounted for using equity method % Goodwill amortisation (5.9) (5.9) 0.0% Minority interests Consolidated net attributable income % Annual results February 3,

35 A PagesJaunes in France pro forma In millions of euros PagesJaunes in France Printed directories The PagesJaunes directory L Annuaire Online services Internet Minitel Websites Other businesses Periods ending December Change 2004/ % 4.7% 1.0% 22.2% 55.1% -8.2% 7.7% -21.2% QuiDonc % Others (including PagesPro, online access to databases, Europages) % Revenues % Cost of services and products sold (188.8) (207.1) -8.8% Commercial expenses (253.5) (233.8) 8.4% Administrative expenses (40.6) (37.6) 8.0% Research and development expenses (1.1) (1.7) -37.6% EBITDA (Earnings before interest, tax, depreciation and amortisation) % as % of revenues 46.7% 43.3% Depreciation and amortisation (excluding goodwill) (6.7) (8.4) -20.5% Operating income % as % of revenues 46.0% 42.3% Annual results February 3,

36 A International & Subsidiaries pro forma In millions of euros International & Subsidiaries 2004 Periods ending December Change 2004/2003 QDQ Media % Other subsidiaries % Kompass France % Wanadoo Data % Mappy (formerly Wanadoo Maps) % Revenues % Cost of services and products sold (24.3) (27.8) -12.6% Commercial expenses (47.6) (58.5) -18.8% Administrative expenses (14.7) (16.4) -10.4% Research and development expenses EBITDA (Earnings before interest, tax, depreciation and amortisation) (10.9) (33.0) -67.0% as % of revenues -14.3% -47.2% Depreciation and amortisation (excluding goodwill) (3.6) (4.2) -13.1% Operating income (14.5) (37.1) -61.0% as % of revenues -19.1% -53.2% Annual results February 3,

37 A Pro forma cash flow statement Periods ending December 31 In millions of euros Net cash from operations Net cash used in investing activities (12.6) (21.9) Net cash used in financing activities (179.0) (267.1) Net increase (decrease) in cash and cash equivalents Effect of changes in exchange rates on cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period (36.7) (0.3) Net cash position Annual results February 3,

38 A Consolidated balance sheet Assets as at 31/12/2004 (in millions of euros) Liabilities as at 31/12/2004 (in millions of euros) Net goodwill 73.3 Shareholders equity Tangible and intangible fixed assets 25.2 Minority interests 0.0 Other long-lived assets 28.3 Total long-term liabilities 30.4 Total long-lived assets Short-term financial debt and bank overdrafts 14.5 Inventories 12.4 Trade accounts payable Trade accounts receivable Accrued expenses and other short-term provisions Deferred income tax - short term 17.1 Other liabilities 4.1 Prepaid expenses and other current assets 84.9 Deferred income Marketable securities 0.3 Total short-term liabilities Cash and cash equivalents Total current assets 1,189.6 Total assets 1,316.4 Total liabilities 1,316.4 Annual results February 3,

39 Pro forma revenues for the fourth quarter of 2004 Period from 1/10 to 31/12 (in millions of euros) Change 2004/2003 Revenues of PagesJaunes in France % On comparable publication basis % Printed directories % On comparable publication basis % The PagesJaunes directory % L Annuaire % Online services % Internet % Minitel % Websites % Other businesses % QuiDonc % Others (PagesPro, sales of online access, Europages) % Revenues of International & Subsidiaries % On comparable publication basis % QDQ Media % On comparable publication basis % Other subsidiaries % Kompass France % Wanadoo Data % Mappy (formerly Wanadoo Maps) % Consolidated revenues % On comparable publication basis % Annual results February 3,

40 A Recap of the organisational structure introduced in 2004 Details of the operation: Partial transfer of assets at market value from PagesJaunes Groupe to the PagesJaunes company on December 31, 2004 effective on January 1, 2004 Net value of transferred assets determined under supervision of independent auditors on basis of a multicriteria approach Approval of the Mixed General Meeting of Shareholders of PagesJaunes Groupe on December 23, 2004 Objectives of the operation: Rationalisation of the Group s structure: separating Group management responsibilities from operational responsibilities and improving visibility on the operating performance of each of the two segments More effective management and control of the various units within the Group Value of net assets transferred: billion Annual results February 3,

41 A Structure of the Group as at December 31, 2004 PagesJaunes Groupe PagesJaunes SA B2C directories 100% 100% QDQ Media B2C directories in Spain Kompass France B2B directories Kompass Belgium* B2B directories 100% 100% 100% 100% Mappy Geographic services Wanadoo Data Direct marketing PagesJaunes Liban* B2C directories 100% 100% Eurodirectory PagesJaunes Outre-Mer* B2C directories 100% 49% Editus Luxembourg B2C directories * Non-consolidated subsidiaries Annual results February 3,

42 A Shareholding structure of PagesJaunes Groupe as at December 31, 2004 Shareholding structure of PagesJaunes Groupe 36.3% 62.0% 1.7% France Telecom Public Employees million shares Annual results February 3,

43 A 2005 diary dates Annual general meeting: April 12 Preliminary 2004 results (IFRS): Mid-April First-quarter revenues 2005: April 27 First-half results 2005: July 20 Third-quarter revenues 2005: October 26 Annual results February 3,

44 A Glossary EBITDA: earnings before interest, tax, depreciation and amortisation Pro forma figures: the consolidated pro forma figures reflect the consolidation of QDQ Media and Mappy with effect from the date on which they became part of the France Telecom Group. The pro forma figures also reflect the transaction prices of QDQ Media and Mappy, which were charged to the company s cash assets at 117 million. ARPA: average revenue per advertiser; calculated by dividing the company advertising revenues (excluding QuiDonc and online access to databases in the case of PagesJaunes in France) by the total number of advertisers 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 that period Comparable publication basis : revenues on a comparable publication basis for the printed directories between the fourth quarter of 2004 and the fourth quarter of The directories for Yvelines and Maine et Loire, which were published in October 2003, were published in September The directories for Indre and Seine et Marne, which were published in September 2003, were published in October Annual results February 3,

45 A Contact Investor Relations Vincent Gouley vgouley@pagesjaunes.fr New address of the corporate website: Annual results February 3,