Half-year figures Media and analyst information Thursday, 22 August 2013, Zurich

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1 Half-year figures 2013 Media and analyst information Thursday, 22 August 2013, Zurich

2 First-half 2013: overview Christoph Tonini Chief Executive Officer 2

3 Growth in Digital offsets structural decline in Print Key figures for first-half 2013 in CHF millions +6% EBIT margin* % % % CHF 5.2 million of which can be attributed to PPSR purchase price adjustment and CHF 14.2 million to a one-off disposal gain in discontinued operations % -19% Revenue EBITDA EBIT Net income 3 *The figures relate in each case to the continued operations

4 Advertising figures not stopped falling since autumn 2011 Change in net revenue for printed advertising in comparison to the same month in the prior year (in percent) % 10% 3% 7% 6% 9% 7% 2% 3% % -7% -9% -10% -10% -5% -13% -13% -6% -7% -13% -16% -18% -8% -13% -9% -9% -16% -6% -5% Jan Mar May July Sept Nov Jan Mar May July Sept Nov Jan Mar May -11% 4 Source: advertising statistics from Verband Schweizer Presse

5 Digital records rise in revenue and income 23% EBIT share Print Regional in CHF millions Revenue share EBITDA share EBIT share % 38% 28% Revenue EBITDA Print National in CHF millions EBIT Revenue share EBITDA share EBIT share % 35% 48% Revenue EBITDA Digital in CHF millions EBIT Revenue share EBITDA share EBIT share 21% 27% 23% Revenue EBITDA EBIT 5

6 Print Regional: feeling the decline in the printed advertising market Division overview Negative market environment results in a fall in revenues for daily and weekly newspapers Measures aimed at increasing efficiency have not completely offset the structural decline Print centres have for the most part met expectations by taking on orders from third parties Convergence of the Tages-Anzeigers editorial team is complete New sectional cooperation being developed between Zürcher Regionalzeitungen ZRZ and BZ Berner Zeitung Launch of digital payment model from 2014 being prepared Print Regional segment overview 273-5% Revenue 260 EBITDA margin* percent percent 41-11% EBITDA 2012* * The figures for 2012 and 2013 do not include discontinued operations 6

7 Print Regional: Decline in advertising despite stable sales income Overview of Print Regional segment Revenue share across the division Sales income Commercial advertising Job- and classified advertising 30% Various 19% 17% Sales income remains stable Revenue for each publication continues to increase slightly Commercial advertisements decrease by 10% in a declining overall market Decrease accounts for a good third of the loss in revenue for Print Regional 20% loss in job- and other classified advertisements (real estate, vehicles, obituaries) Decrease accounts for twothirds of the loss in revenue for Print Regional 7

8 Print Regional: Measures for improving profitability Efficiency increases As part of the efficiency increasing programme, more than 100 measures have already been decided upon and communicated Efficiency has been increased in a number of ways, i.e. through better use of office space, convergence projects at 20 Minuten and Tages- Anzeiger, and more costeffective purchasing conditions There are no plans to make changes to the newspapers or magazines New sources of income Improved utilisation of print centres through the taking on of third-party orders 8 Paywall for regional media The convergence of the editorial team of Tages- Anzeigers is now complete Payment model for Tages-Anzeiger scheduled for launch at the start of 2014

9 Print National: advertising market continuing to decline Division overview The decline in the advertising market was particularly noticeable in our popular titles 20 Minuten, 20 minutes, Annabelle and Sonntagszeitung Profitability was improved for financial publications Bilan and Finanz und Wirtschaft Schweizer Familie is performing at a largely stable and high level People magazine 20 Minuten Friday is making a profit again Newspaper supplements Encore and Auto recorded great national success As of April, Metroxpress was launched in a new format in Denmark; it had previously not met reader expectations Overview of the Print National segment 202-4% Revenue 193 EBITDA margin* percent percent 51-34% EBITDA 2012* * The figures for 2012 and 2013 do not include discontinued operations 9

10 Print National: fall in commercial advertising Overview of Print National segment Revenue share across the division Sales income Commercial advertising Job- and classified advertising 26% Various 8% 63% 7% drop in sales income Slight decrease in sales income for each publication Suffered a 13% loss The fall in commercial advertising is the main reason for the decline in revenues in the Print National division 18% loss in job- and other classified advertising (real estate, vehicles, obituaries) Economically sensitive job advertisements, however only an insignificant effect on the division 10

National supplements largely meet expectations Auto magazine Encore magazine Natura magazine Germanspeaking

competitors Auto achieved the targets set as regards revenue and net income Romandy Multilingual lifestyle

particularly for advertising clients in the luxury segment Encore achieved its revenue and net income targets

11 National supplements largely meet expectations Auto magazine Encore magazine Natura magazine Germanspeaking Switzerland Positively received by the advertising market in a challenging market environment with many direct competitors Auto achieved the targets set as regards revenue and net income Romandy Multilingual lifestyle magazine has been well received by the advertising market and readers Encore has an attractive positioning, particularly for advertising clients in the luxury segment Encore achieved its revenue and net income targets 11 Feedback from readers was generally positive The product was met with a reserved reception from the advertising market

SonntagsZeitung: investment in cooperations in Basel and Berne MARKTABDECKUNG Combination of the different SonntagsZeitung editions

subscribers have also received SonntagsZeitung Basler Zeitung subscribers have also received SonntagsZeitung since the start of

5% Total: 738,000 readers* Over 19% 15% to 19% Less than 15% * Not including the effect of the expansion in Basel and Berne 12

12 SonntagsZeitung: investment in cooperations in Basel and Berne MARKTABDECKUNG Combination of the different SonntagsZeitung editions in Basel and Berne + The Basel and Berne effect: +2% circulation Increase in readership of SonntagsZeitung As of Autumn 2012, Bund subscribers have also received SonntagsZeitung Basler Zeitung subscribers have also received SonntagsZeitung since the start of March 2013 Readership as of 2014 Estimate! SonntagsZeitung circulation German-speaking Switzerland 16.5% Total: 738,000 readers* Over 19% 15% to 19% Less than 15% * Not including the effect of the expansion in Basel and Berne 12 SonntagsBlick 805 NZZ am Sonntag 529 Schw. am Sonntag* 438 Zentralschw. a,s, 182 Source: Mach Basic Wemf ; * Addition of Sonntag and Südostschweiz am Sonntag

Metroxpress repositioned, however targets still not met Readership figures in Denmark* Politiken Jyllands-Posten Berlingske Ekstra Bladet

5% Experience gained after three months on the market Metroxpress was released in a new format in April Metroxpress is defending its

away from their previous, original expectations Distribution is currently being expanded and improved in order to increase readership

13 Metroxpress repositioned, however targets still not met Readership figures in Denmark* Politiken Jyllands-Posten Berlingske Ekstra Bladet Jun 2012 B.T. Jun % -13.4% -32.8% -6% -17% -31.5% Experience gained after three months on the market Metroxpress was released in a new format in April Metroxpress is defending its number-1 position The structural change effected on the print market has accelerated in Denmark; The Metroxpress readership have not moved away from their previous, original expectations Distribution is currently being expanded and improved in order to increase readership Measures taken to increase readership Remission rate for weeks 14 to 26** 40% 30% 20% 10% 0% * Source: TNS Gallup Q1 2012/2013 ** Source: Metroxpress report

14 Digital: strong growth due primarily to initial consolidations Division overview The integration of jobs.ch (current Tamedia share: 62.9%) has considerably increased the revenue and net income generated by the division The full consolidation of Olmero/Renovero started on 1 April 2013 Homegate has reinforced its strong position on the real-estate market Investments in the expansion of search.ch have been reflected in a positive performance vis-à-vis revenue and net income Outlook Collaboration with Schibsted planned for classified and vehicle advertisement platforms tutti.ch and car4you.ch Acquisition of Starticket planned 14 Overview of Digital segment % Revenue 112 EBITDA margin* % % * The figures for 2012 and 2013 do not include discontinued operations -4 EBITDA 2012*

15 Digital division growing even without factoring in any new platforms Current revenue for Digital business in firsthalf 2013 in comparison with previous year 112** Current EBITDA for Digital business in firsthalf 2013 in comparison with previous year 26** +18% 52** ** +CHF 11 million 4 Revenue generated by current platforms in 1H 2012* Revenue generated by current platforms in 1H 2013* * not including JobUp New platforms Total Digital revenue 15-7 EBITDA for current platforms in 1H 2012* EBITDA for current platforms in 1H 2013* **after deducting the deferred revenue within the scope of the purchase price allocation New platforms EBITDA Digital

16 Strong market positions in key online markets News: unique users per month in thousands 1 Jobs: unique clients in thousands 2 Real estate: unique clients in thousands jobs.ch indeed.ch 5 ImmoScout srf.ch 1792 jobscout24.ch 478 home.ch 534 blick.ch 1703 monster.com 5 *** 388 Classified ads: unique clients in thousands 2 AutoScout tutti.ch Directories: unique users per week in thousands local.ch 1027 Services: unique clients in thousands comparis 1121 Anibis 850 topin.ch 3 wetter.com suche.ch Sources: 1 NET Metrix profile ; 2 NET Metrix audit ; 3 Estimate based on unique clients per month from Wemf NET Metrix audit; 4 Competition Commission ruling outstanding; 5 Rough estimate 16based on Google Trends; 6 Estimate; expectedhalf-year overlap between figuresthe 2013, jobs.ch/jobupnetworks of 20%; 7 Google 22 August 2013 Analytics

17 News sites: improved profitability also in Mobile business Unique users per month in thousands* Unique users per month in thousands* +17% +9% % Mobile share 71% 29% Mobile 36% share Mobile advertisement revenue in 20 Minuten +88% Mobile advertisement revenue for Newsnet +95% * Source: NET Metrix profile and ** Calculated using NET Metrix Mobile and

Revenue for first-half 2013 in comparison

ch Holding AG platforms have given Jobup AG

currently showing a positive performance

offset their holding in May 2014 by means

50% * One-time deferred revenue within the

18 Jobs: JobCloud AG platforms are clear market leaders JobCloud AG platforms Revenue for first-half 2013 in comparison with first-half % 3252* The Jobs.ch Holding AG platforms have given Jobup AG a shot in the arm, as all key figures are currently showing a positive performance New presence under the name of JobCloud AG Tamedia currently holds 62.9% of the shares, Ringier has the option to offset their holding in May 2014 by means of a corresponding compensation payment of 50% * One-time deferred revenue within the scope of purchase price allocations; ** jobs.ch+ jobup.ch ** Net income for first-half 2013 in comparison with first-half ** +33% 3252*

advertised properties in thousands per year from 2002

ch online mortgage 400 350 300 250 200 150 100 64% New

completely arranged via the Internet Gradual

19 Real estate: homegate.ch maintains high revenue and net income Number of advertised properties in thousands per year from 2002 to 2012, and 1H 2013 homegate.ch online mortgage % New online mortgages available in collaboration with Zürcher Kantonalbank homegate.ch offers the first online mortgage that can be completely arranged via the Internet Gradual acquisition of immostreet.ch (1H) 19 20% holding in immo-street.ch; full acquisition scheduled to be carried out by 2016

Olmero and Renovero platforms being fully consolidated Timeline of

partnership with a 20% holding Holding increased to 24% at the end of

end of June 2013 Full consolidation from 1 April 2013 onwards 20 Active

Jan 11 Jan 12 Jan 13 Advertisements on Olmero in the respective first

20 Olmero and Renovero platforms being fully consolidated Timeline of Olmero/Renovero acquisition December 2009: start of the strategic partnership with a 20% holding Holding increased to 24% at the end of March 2011 Holding in Olmero AG increased to around 93% in two phases at end of June 2013 Full consolidation from 1 April 2013 onwards 20 Active projects in the project field Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Advertisements on Olmero in the respective first half-year periods %

21 search.ch reduces losses significantly to become number 1 on the user market Unique users per week for search.ch and local.ch in thousands % Comparison of search.ch revenue and EBITDA for first-half 2012 vs. first-half % local.ch % Revenue EBITDA Growth in the number of search.ch directory clients within a one-year-period +32% Already acquired directory revenue for first-half 2013 in comparison with 2012 revenue +56% Source: NET Metrix profile to

22 Classified ads: collaboration with Schibsted Media Group piazza.ch platform merges with tutti.ch car4you.ch unique clients* +8% June 12 June 13 Key factors of the collaboration The Schibsted Media Group and Tamedia each have a 50% holding in thesamesubsidiarycompany The exchange of ads between car4you.ch and tutti.ch ensures that advertisers can reach more people The management teams of both tutti.ch and car4you.ch will remain unchanged The transaction is subject to the approval of the Swiss Federal Competition Commission Source: NET Metrix audit June 2012 / June

Services: Tamedia assumes majority control of Starticket Starticket: innovative number 2 on the market Starticket acquisition timeline

The transaction has been disclosed to the Swiss Federal Competition Commission Starticket Facts Switzerland s second-largest ticket

apps, box office, advance booking office and the call centre Heavily used for print-at-home tickets (its invention) and mobile tickets

23 Services: Tamedia assumes majority control of Starticket Starticket: innovative number 2 on the market Starticket acquisition timeline Tamedia plans to purchase a 75% holding in ticket marketer, Starticket Starticket will profit from Tamedia s widereaching media network The transaction has been disclosed to the Swiss Federal Competition Commission Starticket Facts Switzerland s second-largest ticket marketer Provides tickets for concert, festivals, parties, theatre, sporting events and special events via the online portal, mobile apps, box office, advance booking office and the call centre Heavily used for print-at-home tickets (its invention) and mobile tickets Starticket the company Founded in 2003 by Peter Hürlimann as a film distributor and open-air cinema operator 29 employees in Zollikon, Zurich 23

24 Tamedia: owns four of the six leading websites in Switzerland Swiss websites according to number of unique clients (in thousands) in June Minuten National (20minuten.ch, 20minutes.ch, tio.ch) local.ch Newsnet National search.ch Blick Classified Tamedia* srf.ch sbb.ch Scout24 network Source: NET Metrix audit June 2013 *Estimate based on individual values from the NET Metrix audit (Car4you Homegate, jobs.ch and Jobup, and Google Analytics for piazza.ch) 24

25 Outlook: offset of structural decline in Print; expansion of Digital Print Regional: structural decline absorbed There have been increases in efficiency after having tapped into new potential revenue and by making cost adjustments with the aim of countering structural drops in revenue Tamedia continues to maintain an open attitude towards cooperations with both internal and external partners; a new sectional cooperation has been set up between BZ Berner Zeitung and Zürcher Regionalzeitungen ZRZ, as well as the printing of La Liberté Print National: new offerings available Structural declines in revenue have been offset by efficiency increasing measures The relaunch of the Metroxpress commuter newspaper in Denmark has been a great success with the readers Continuation of the enclosure strategy and cooperations with SonntagsZeitung in Basel and Berne will allow us to tap into new revenues and gain new readers from 2014 onwards Digital: jobs.ch, payment model launch and the commercialisation of Mobile The payment model for tagesanzeiger.ch will be launched at the start of 2014, and further models will be gradually implemented for all daily and weekly newspapers subject to a fee The commercialisation strategy for mobile traffic will be implemented consistently and the offering in the Digital Advertising & Services department expanded Revenue and net income has grown in the key classified markets, i.e. jobs and real estate A holding was purchased in starticket.ch and the cooperation with Schibsted was successfully implemented on the market for classified and car advertising Further investments are being made in promising or successful digital offerings 25

26 First-half 2013: Financial report Sandro Macciacchini Chief Financial Officer 26

27 Notes on first-half 2013 (1/2) Newly consolidated companies and activities 20 Minuten AG purchased a 100% stake in Metroxpress Denmark SA in January 2013, which will be fully consolidated at the start of the year. Tamedia AG increased its holding in Olmero AG from 24.4% to 88.51% in March Olmero AG became fully consolidated on 1 April As the acquisition was carried out in several steps, the previously held shares had to be factored in at fair value at the time of the transfer of control. The difference between the fair value and the previous value of these shares amounts to CHF 5.6 million and is reported under other operating revenues. In January 2013, Jobcloud AG increased its holding in Jobsuchmaschine AG from 49% to 100%. Jobsuchmaschine AG was fully consolidated on 1 January Discontinued operations There were no significant discontinued operations in first-half In the previous year, TV operations TeleBärn and TeleZüri, radio broadcasters Capital FM and Radio 24, and magazines Terre & Nature and Schweizer Bauer were sold. These companies balance sheets were posted under discontinued operations, including the profit gained from the disposal of the operations. 27

28 Notes on first-half 2013 (2/2) Changes to the accounting standards/adjustments to the figures from the previous period In the period under review, the following new and revised standards (IFRS) were applied for the very first time. The significant impacts are explained below: As a result of the amendment to IAS 19 Employee benefits, the expected return on plan assets is no longer calculated on the basis of an estimated rate of return on assets. Instead, the discount rate is now used to calculate the net present value of obligations under defined benefit plans. This means that net plan liabilities/net plan assets are now only subject to interest at the discount rate. The retroactive application of this method with effect from 1 January 2012 results in an employee benefit expense pursuant to IAS 19 that is CHF 0.4 million higher and a net financial return that is CHF 7 million lower than the figure disclosed as of 30 June Under the new IFRS 11 standard Joint Arrangements, the previously applied proportionate consolidation is no longer permitted. The share of net income from proportionately consolidated companies is now reported as the share of net income contributed by associated companies/joint ventures. As a result, half-year revenue for 2012 fell by CHF 17.8 million, EBITDA by CHF 1.3 million and EBIT by CHF 0.9 million. The figures from the previous period have been adjusted accordingly. 28

29 Media revenue rises by 4%; CHF 5.6 million revaluations in other operating revenues (step up Olmero) in CHF millions +4% % % % 22.2 Media revenue Print revenue Other operating revenue Operating revenue 29 The figures relate in each case to the continued operations

30 Operating expenses also rise by 5% as a result of acquisitions in CHF millions +5% % % +3% Costs of materials and services Personnel expenses Other operating expenses Operating expenses The figures relate in each case to continued operations 30

31 Depreciation and amortisation on intangible assets up 64% following initial consolidations in CHF millions +15% % +4% % Depreciation and amortisation on property, plant and equipment Depreciation and amortisation on intangible assets The figures relate in each case to the continued operations Impairment on goodwill 31 Other depreciation and amortisation, and impairments Total depreciation and amortisation

32 Capex continues to be posted at a low level in relation to operating income Investment in property, plant and equipment (Capex) in CHF millions and as a percentage of operating income % Ø23 9% % % % % ) Excluding acquisitions of holdings and business units 32 3% % % Capex in percent Capex in CHF millions 4% % % 13 1H

33 Net income falls due to extraordinary effects in the previous year: net financial income of CHF 5.2 million and a disposal gain of CHF 14.2 million in CHF millions % % % % 54.7 EBIT Net income before tax Net income of continued operations Net income 33

34 Investments in Olmero and Metroxpress Statement of cash flows for first-half 2013 in CHF millions -9% -38% Status of cash and cash equivalents CHF 73.7 million +91% -79% -57% Cash flow from trading activities Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Change in cash flow* 34 *incl. discontinued operations

35 The equity ratio amounts to 60%; without non-controlling interests, the ratio amounts to 51% in CHF millions 10% Current assets Non-current assets 17% 29% 61% Current liabilities Non-current liabilities 23% 60% Equity

36 Thank you for your attention! 36

Half-year figures Media and analyst information Friday, 22 August 2014, Zurich

Half-year figures Media and analyst information Friday, 22 August 2014, Zurich Half-year figures 2014 Media and analyst information Friday, 22 August 2014, Zurich First-half 2014: overview Christoph Tonini Chief Executive Officer 2 Improvement in net income thanks to acquisitions