Results for the 3 rd Quarter of Tuesday, 13 November 2012

Transcription

1 Results for the 3 rd Quarter of 2012 Tuesday, 13 November 2012

2 Disclaimer 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 effects of competition, PagesJaunes usage levels, the success of investments by the PagesJaunes Groupe in France and abroad, and the effects of the economic situation. A description of the risks borne by the PagesJaunes Groupe appears in section 4 "Facteurs de risques" of the PagesJaunes Groupe s "Document de Référence" filed with the French financial markets authority (AMF) on 26 April 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 said document or to take account of the occurrence of unexpected events. All accounting data are presented in non-audited consolidated form. Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

3 Highlights Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

4 Successful refinancing and debt reduction Close to unanimous consent of lenders obtained The Group has obtained the consent of 98% of all of its creditors on the terms and conditions of the refinancing proposal. and lenders agreement for extending the maturity of over 91% of its debt facilities (tranches A1 and RCF) initially maturing in November 2013 to September Refinancing closing expected end November New debtmaturityprofile 3 Ongoing gross deleveraging 1 Total gross debt reduction of 680 million by April 2015 with: Immediate reduction in gross debt of 417 million Repayment of 72 million of tranches A1 and RCF in November 2013 Contractual amortisation of 191 million within April 2015 The Group confirms its commitment of suspending its dividend until its net indebtedness reaches a level corresponding to 3 times EBITDA 2 In M , Pre refinancing 72 1,814 1, Post refinancing Maturity 2013 Maturity 2015 Senior secured notes 2018 Limited increase in average debt cost (estimated annual impact of around 5M on financial expenses) (1) At the end of the conclusion and the entry into force of the necessary endorsements (2) As defined in the facility agreement with financial institutions (3) Pre-contractual amortisation Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

5 Highlights Internet growth outperforming the market Internet revenues: +9.4% at the end of September Search: +8.8% and Display, sites & digital marketing: +10.9% at the end of September Very strong growth of mobile audience +80% mobile visits (1) at the end of September 2012 buoyed by the growth in downloads on Android PagesJaunes Groupe in the top 5 in terms of mobile audience in France at the end of August 2012 (2) Almost 20 million mobile application downloads: 12 million for PagesJaunes and 7 million for Mappy New PagesJaunes applications (iphone V5, Full App Android, Microsoft Windows 8), Rest Oh! Launch of Mappy GPS Free V3 and on-board car navigation Development of indirect web audience and partnerships 25% of indirect audience, in particular through Bing, Google and Facebook (ZoomOn) Continued verticalisation of content and offers (Public sector, Health care sector,...) Strong start with the good deals offer Partnerships with NRJ Global Régions, Local.ch, American Express Progressive reduction in the paper directory activity Revenue from Printed directories: -14.2% at the end of September PagesBlanches France stopped in 4 départements (06, 78, 91, 95) in the 3 rd quarter and margins maintained Paper business in Spain fully stopped Disposal of 39% of Editus (60% of the paper directory activity) (1) Excluding 123people (2) Statistical indicator from Nielsen Médiamétrie: "Reach" rate for Mobile Internet at 26.8% at the end of August 2012 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

6 Consolidated revenues down -2.4% Internet up by +9.4% Trend in Group revenues -3.1% -2.4% -2.4% In millions 1000 of euros % % % Other revenues 400 Print revenues % (47%) +6.4% (52%) +9.4% (58%) Internet revenues 0 9M M M 2012 Group GOM rate: 45.2% in the first nine months of 2012 compared to 46.5% in 2011 Decrease in the margin rate linked with commercial investment Partially offset by the drop in costs Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

7 Trend in Printed directories 400 Trend in the revenue from Printed directories at the end of September In millions of euros % -13.4% -9.2% % -16.2% -14.2% Decrease in Printed directories revenue of -14.2% over 9 months Drop in revenues of -15.9% in Q3 linked to a high urban mix and the PagesBlanches stopped in 4 départements (06, 78, 91, 95) Paper business in Spain fully stopped and deconsolidation of Editus from 1 October % % Optimisation of publishing costs (Paper, Print, Distribution), down by -15% 100 9M M 2012 PagesJaunes in France PagesBlanches in France International Printed directories revenues at 40% of Group revenues down -14.2% at the end of September 2012 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

8 Trend in Internet (fixed and mobile) Internet revenue split and trend at the end of September In millions 500 of euros % +6.4% % +9.4% Internet Market France +6.5% ZenithOptimedia Trend Oct 12 vs. Oct % % M M 2012 Search Display, sites and digital marketing Internet revenues at 58% of Group revenues net growth of +9.4% at the end of September 2012 * ZentihOptimedia forecast, October 2012 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

9 Growth in Internet audiences: +8.4% in Q In millions Trend in the number of visits (fixed and mobile) excluding 123people Other PagesJaunes Groupe in the top 5 of fixed and mobile audiences PJG 5 th in fixed Internet with a reach rate* at 43.5% in August 2012 Growth in mobile reach rate* to 26.8% in August 2012 Very strong growth in mobile audience Growth of 82.6% in mobile audience in Q Development of audiences through SEO and partnerships 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q % indirect access Presence of pagesjaunes.fr search on the major audience portals (Bing, Free, MSN, SFR, Yahoo! and Alice ADSL) Source: PagesJaunes Groupe - On a like-for-like basis * Statistical indicator from Nielsen Médiamétrie Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

10 Audience is shifting quickly to mobile, contents and out portal access Change in audience Pages Jaunes Q Q Content: Out-portal: 25% audience 5k fan pages 100k websites: +15% SEO 700k detailed pages: +54% Partnerships Total audience: +6% including Fixed web: +1% Mobile web: 19% audience +64% Own network Own social local media Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

11 Mobile Internet: nearly 20 million applications at the end of September 2012 Mobile applications downloaded Total in millions March 10 June 10 Sept. 10 Dec. 10 March 11 June 11 Sept Dec March 12 June Sept. 12 Growth in downloads from 10.1 million to 19.9 million in 1 year 12 million downloads for PagesJaunes and 7 million for Mappy Success of MappyGPS Free, launch of V3 and start of monetisation Launch of Rest Oh! on iphone PagesJaunes Mappy AnnoncesJaunes Source: PagesJaunes Groupe Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

12 Content and websites: continued growth Trend in the number of websites sold* in France & Spain In 140 thousands March June Sept, Dec March 11 France June 11 Spain Sept Dec March June 12 Sept. 12 Enhancement of the product range and services + 120,000 websites for professionals in France and Spain + 110,000 mobile sites for professionals + 4,000 fan pages created on Facebook (Facebook presence pack) + 12 million appointments made online with ClicRDV by more than 400,000 users since the creation Source: PagesJaunes Groupe * excluding Leadformance Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

13 Specialization and transformation of sales forces Specialization of 240 commercial advisers on some verticals: Real estate Hotels/restaurants/local shops B2B Investment of about 20 million euros per year to support growth and develop sales effectiveness New customer acquisition teams Development of the multi-contact Training Sales tools and customer relations Example of real estate Combined offer with 3 strong brands: PagesJaunes, A vendre A louer, AnnoncesJaunes Sharp increase in audiences 75% revenue on Internet Internet growth: +16% Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

14 Financial results for the 3 rd Quarter of 2012 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

15 Decrease in Group revenues of -2.4% Internet at +9.4% representing 58% of total Consolidated revenues by segment In millions of euros 9M M 2011 Change Group revenues % Internet % as % of Group revenues 57.9% 51.7% Printed directories % as % of Group revenues 39.5% 45.0% Other businesses % as % of Group revenues 2.6% 3.3% Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

16 Gross operating margin rate at 45.2% Consolidated gross operating margin (GOM) by segment In millions of euros 9M M 2011 Change Group gross operating margin as % of Group revenues 45.2% 46.5% -130 bps Internet as % of Internet revenues 44.5% 46.3% -180 bps Printed directories as % of Printed directories revenues 46.7% 47.7% -100 bps Other businesses as % of Other businesses revenues 38.7% 33.1% na Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

17 Decrease in Group GOM by -5.0% linked with commercial investment Consolidated gross operating margin (GOM) In millions of euros 9M M 2011 Change Group revenues % External purchases (164.3) (178.6) 8.0% Other operating income and expenses (2.0) (5.1) 60.8% Salaries and social charges (271.8) (254.8) -6.7% Gross operating margin % as % of Group revenues 45.2% 46.5% Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

18 Increase in depreciation and financial expenses From gross operating margin to consolidated net income In millions of euros 9M M 2011 Change Gross operating margin % Legal employee profit sharing (11.6) (10.5) -10.5% Share-based payment (0.7) (1.1) 36.4% Depreciation and amortisation charges (26.5) (18.0) -47.2% Gain and losses from disposals (0.1) (0.3) 66.7% Acquisition costs of shares - (0.7) na Operating income % Financial income % Financial expenses (98.9) (94.7) -4.4% Net financial result (95.0) (92.0) -3.3% Share of the result from associated companies (0.7) (0.1) na Pretax income % Corporate income tax (88.2) (95.9) 8.0% Net income % Of which attributable to: PagesJaunes Groupe shareholders % Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

19 Net cash flow: 165 million as of 30 September 2012 Cash flow as of 30 September 2012 In millions of euros (29) (79) (76) 200 (13) 165 (2) GOM 9M 2012 Capex Financial result Tax Other Operational charges* Net cash flow 9M 2012 Other net cash 9M 2012 (Excluding RCF Credit line drawn) * Including change in working capital requirement (+1), non-monetary items included in GOM (-2) and employee profit-sharing (-12) Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

20 Compliance with covenants Financial leverage 1 15% Interest coverage 35% x 4.5x 4.3x 4.3x x 3.75x 4.84x 4.44x 4.06x x 3.79x 3.82x 3.65x x 3.00x 3.00x /31/10 09/30/11 12/31/11 09/30/ /31/10 09/30/11 12/31/11 09/30/12 Net debt over GOM Maximum allowed GOM over net financial charge Minimum required 1, 4,00x as of 31 December 2012 and 3.75x as of 31 December 2013 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

21 Successful refinancing Consent of 98% of bank debt lenders Over 91% of lenders of November 2013 debt maturities (tranches A1 and RCF) agreed to extend to September 2015 Closing expected end November New structure of bank debt 1 Size ( M) Maturity Margin (bps) / Rate (%) Tranche A November Tranche A September Tranche A September RCF November RCF September Total Bank debt 1, Senior secured notes June % Total Gross debt 4 1, (1) At the end of the conclusion and the entry into force of the necessary endorsements. (2) Post refinancing, RCF of 300M converted into 33M maturing in November 2013 (RCF 1 o/w 22M drawn), 74M maturing in September 2015 (RCF 3), 56M in term loan maturing in September 2015 (A5) and 137M repaid or cancelled. (3) Average weighted margin of 377 bps, representing a 113 bps increase (4) Gross debt corresponding to bank and bond debts, excluding Other debts of 60 millions as at September Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

22 More favorable maturity profile New debt maturity profile 3 2,231 in M Avant Prerefinancement refinancing 72 1,814 1, Après Post refinancing refinancement Maturity 2013 Maturity 2015 Senior secured notes 2018 (1) At the end of the conclusion and the entry into force of the necessary endorsements (2) As defined in the facility agreement with financial institutions (3) Pre-contractual amortisation 97% of bank debt refinanced over the last 18 months Gross debt now at 1,814 million Clear path to repayment with contractual reduction in gross debt from September 2013 Partial and immediate debt pre-payment of 417 million 1 Contractual amortisation of 191 million over September April 2015 period Cash sweep of 75% of excess cash flow The Group confirms its commitment of suspending its dividend until its net indebtedness reaches a level corresponding to 3 times EBITDA residual maturity of bank debt estimated at ca. 1,200 million (pre cash sweep) Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

23 Limited increase in average cost of debt 8% 7% 6% 5% 5.60% Average cost of total debt % Refinancing impact full year +91bps 5.42% 5.33% 5.26% Average cost of debt at 5.26% at end September 2012 Refinancing to be fully completed by end of November 2012 : limited impact over 2012 financial charges Limited increase in average cost of gross debt on a full year basis 2 at 91 bps (around 5 million 3 ) 4% 3% 2% 1% Hedged variable-rate debt : 56% until November % from November 2013 until September % Sept-11 Dec-11 March-12 June-12 Sept-12 (1) Weighted average of bank debt cost and coupon on the high yield notes (2) Increase of average cost of debt on a full year basis excluding impact of contractual amortisation: +113 bps of weighted margin of bank debt which represents 81% of total debt (3) Net of savings realised on repayment of 417M of A1/RCF1 as per the amended terms of the facility agreement Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

24 Outlook for 2012 Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

25 Outlook for 2012 The Group confirmed its objectives for 2012 : Expected decrease in revenues between -1% and -3% Acceleration of growth in Internet businesses, which will represent close to 60% of total revenues in 2012 Expected gross operating margin between 470 million and 485 million Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

26 Questions & Answers Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

27 Results for the 3 rd Quarter of 2012 Tuesday, 13 November 2012

28 Appendices Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

29 Revenues and Gross operating margin: 3 rd Quarter 2012 and 9 months 2012 In millions of euros Q Q Change 9M M 2011 Change Internet % % Printed directories % % Other businesses % % Revenues % % Internet as % of Internet revenues 46.6% 49.0% -240 bps 44.5% 46.3% -180 bps Printed directories as % of Printed directories revenues 47.6% 47.4% +20 bps 46.7% 47.7% -100 bps Other businesses as % of Other businesses revenues 53.2% 22.2% na 38.7% 33.1% na Gross operating margin as % of Group revenues 47.2% 47.5% -30 bps 45.2% 46.5% -130 bps Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

30 Income statement: 3 rd Quarter 2012 and 9 months 2012 In millions of euros Q Q Change 9M M 2011 Change Revenues % % External purchases (54.4) (61.4) 11.4% (164.3) (178.6) 8.0% Other operating income and expenses (1.4) (1.7) 17.6% (2.0) (5.1) 60.8% Salaries and social charges (89.5) (86.6) -3.3% (271.8) (254.8) -6.7% Gross operating margin % % as % of revenues 47.2% 47.5% 45.2% 46.5% Legal employee profit-sharing (4.8) (3.6) -33.3% (11.6) (10.5) -10.5% Share-based payment (0.2) (0.4) 50.0% (0.7) (1.1) 36.4% Depreciation and amortisation (9.5) (6.3) -50.8% (26.5) (18.0) -47.2% Gain and losses from disposals 0.0 (0.1) na (0.1) (0.3) 66.7% Acquisition costs of shares - (0.2) na - (0.7) na Operating income % % Financial income na % Financial expenses (31.3) (34.9) 10.3% (98.9) (94.7) -4.4% Net financial result (29.9) (34.8) 14.1% (95.0) (92.0) -3.3% Share of the result from associated companies (0.3) (0.0) na (0.7) (0.1) na Pretax income % % Corporate income tax (33.0) (33.1) 0.3% (88.2) (95.9) 8.0% Corporate tax rate 38.8% 36.8% 38.7% 37.1% Net income % % Of which attributable to: PagesJaunes Groupe shareholders % % Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

31 Cash flow statement: 3 rd Quarter 2012 and 9 months 2012 In millions of euros Q Q Change 9M M 2011 Change GOM % % Legal employee profit-sharing (4.8) (3.6) -33.3% (11.6) (10.5) -10.8% Non-monetary items included in GOM (3.4) 1.0 na (1.6) 4.0 na Changes in working capital requirement (28.4) (34.8) +18.4% Na Acquisitions of tangible and intangible fixed assets (9.2) (8.9) -3.4% (29.2) (29.0) -0.6% Operating cash flow % % as % of GOM (transformation rate) 64.6% 65.8% 88.6% 90.8% Financial income / (expense) (20.4) (23.9) +14.6% (79.0) (68.6) -15.1% Corporate income tax paid (27.4) (26.2) -4.6% (76.2) (95.7) +20.4% Net cash flow % % Increase (decrease) in borrowings (0.1) (3.7) na (22.9) na Dividends paid - - na - (162.7) na Acquisitions of investment securities and subsidiaries, net of cash acquired - (8.6) na (1.3) (19.7) na Other net cash 0.1 (3.9) na (0.7) (5.2) +86.3% Net cash variation na (29.0) na Net cash and cash equivalents at beginning of period % Net cash and cash equivalents at end of period na na Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

32 Condensed balance sheet as of 30 September 2012 In millions of euros 30 Sept Dec Sept 2011 ASSETS Total non-current assets Net goodwill Net intangible fixed assets Net tangible fixed assets Other non-current assets of which deferred tax assets Total current assets Trade accounts receivable Deferred charges Cash and cash equivalents Other current assets Total assets 1, LIABILITIES Total equity (1,984.3) (2,120.9) (2,150.6) Total non-current liabilities 2, , ,032.3 Non-current financial liabilities and derivatives 1, , ,971.7 Employee benefits (non-current) Other non-current liabilities Total current liabilities 1, Bank overdrafts and other short-term borrowings Deferred income Personnel benefits (current) Trade accounts payable Other current liabilities Total liabilities 1, Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

33 Net debt as of 30 September 2012 In millions of euros 30 Sept Dec Sept 2011 Cash and cash equivalents Gross cash position Bank overdrafts (3.0) (4.6) (4.5) Net cash position Bank borrowings (1,600.1) (1,600.2) (1,600.2) Bond borrowings (350.0) (350.0) (350.0) Revolving credit line drawn (281.4) - - Loan issuance expenses Capital leases (0.1) (0.1) (0.1) Liabilities in respect of hedging instruments - - (1.9) Fair value of hedging instruments (62.7) (56.4) (54.3) Accrued interest not yet due (14.4) (7.4) (16.4) Other financial liabilities (10.3) (12.1) (11.7) Gross financial debt (2,291.2) (1,992.8) (1,999.0) Of which current (299.0) (11.3) (27.4) Of which non-current (1,992.2) (1,981.5) (1,971.7) Net cash (debt) (1,770.1) (1,914.7) (1,924.5) Net cash (debt) excluding fair value of financial instruments and loan issuance expenses (1,735.3) (1,891.7) (1,905.8) Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

34 Glossary Results for the 3 rd Quarter of 2012 Copyright PagesJaunes

35 Glossary Group Internet revenues: total of Internet revenues from PagesJaunes (pagesjaunes.fr, annoncesjaunes.fr, pagespro.com, websites and mobile Internet) and Internet revenues from all other subsidiaries in the Group. 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. Net financial debt: total gross financial debt plus or minus the fair value of derivative asset and liability hedging instruments and minus cash and cash equivalents. Ratio of net debt to GOM as defined in the agreement concluded with the financial establishments, in other words the ratio between consolidated net debt and an aggregate close to consolidated GOM. Ratio of GOM to net financial expenses as defined in the agreement concluded with the financial establishments, in other words the ratio between an aggregate close to consolidated GOM and consolidated net financial expenses. Results for the 3 rd Quarter of 2012 Copyright PagesJaunes