ENIRO Q1 REPORT 2012-04-25 Johan Lindgren, CEO Mattias Lundqvist, CFO Cecilia Lannebo, Head of IR
FINANCIAL HIGHLIGHTS, Q1 2012 Revenues SEK 959 M (966), a decline of 0,7% (-24). Organically revenues declined by 8 percent (-13) Online/mobile revenues increased by 2% (-2) organically Digital media share in Eniro 77 percent excl Voice (73) Cost reductions SEK 67 M part of the SEK 200 M communicated for the full year 2012 EBITDA SEK 156 M (122), EBITDA margin of 16,3% (12,6) Adjusted EBITDA SEK 160 M (134) Cash flow SEK 13 M (-78) Interest bearing net debt SEK 3,515 M (3,775), (Q4 3,535) Net debt/ebitda 3.3 (3.3) (Q4 3.4) 2
PROS AND CONS IN THE Q1 REPORT Pros Cons Total revenue development Adjusted revenue guidance for 2012 Group EBITDA Organic sales development Cash-flow and working capital Prepaid development quarter over quarter Cost savings Net debt slightly lowered Development of Danish operation Conditions in bank agreements fulfilled Additional repayment of SEK 158 M EBITDA guidance remains 3
REVENUE BY CATEGORY AND COUNTRY Revenue by category Revenue by country 600 500 +7% 600 500-1% 400 300 200 100 0-9% +15% -20% -11% 400 300 200 100 0-7% +42% -9% -10% Sweden Norway Denmark Finland Poland Q1 2011 Q1 2012 Q1 2011 Q1 2012 4
ORGANIC DEVELOPMENT 15% 10% 5% 0% -5% -10% -15% -20% -25% Total Online 5
ONLINE/MOBILE Total revenues increases 7 percent (SEK 23 M contribution from De Gule Sider) Organic development +2 percent SHARE OF TOTAL REVENUES REVENUES, SEK M 53% 600 400 200 0 Q1 Q2 Q3 Q4 2011 2012 Q1 2012 Q1 2011 Revenues, SEK M 513 479 Organic development % 2-2 Share of Eniro % 53 50 6
PRINT Total revenues decreased -9 percent Organic development -30 percent Evaluation of future strategy regarding De Gule Sider print books SHARE OF TOTAL REVENUES 18% 500 400 300 200 100 0 REVENUES, SEK M Q1 Q2 Q3 Q4 2011 2012 Q1 2012 Q1 2011 Revenues, SEK M 172 189 Organic development % -30-37 Share of Eniro % 18 20 7
MEDIA PRODUCTS Total revenues increased 15 percent Organic development 14 percent, a ramp up in growth is expected during H2 Eniro Deals to be managed via third party Eniro Buy & Sell sevice divested SHARE OF TOTAL REVENUES REVENUES SEK M 80 6% 60 40 20 0 Q1 Q2 Q3 Q4 Q1 2012 Q1 2011 Revenues, SEK M 54 47 Organic development % 14 23 Share of Eniro % 6 5 2011 2012 8
VOICE Total revenues decreased 11 percent Organic development -11 percent Q1 EBITDA SEK 57 M (53), an EBITDA margin of 31,1 percent (25,9) Decision not to complete the acquisition of the DA company 118 800 SHARE OF TOTAL REVENUES REVENEUS, SEK M 19% 300 200 100 0 Q1 Q2 Q3 Q4 Q1 2012 Q1 2011 Revenues, SEK M 183 205 Organic development % -11-9 EBITDA, SEK M 57 53 Share of Eniro % 19 21 2011 2012 9
ACTIVITIES IN THE PERIOD Corporate Implementation of the acquisition De Gule Sider in Denmark Communication of Eniro not completing the acquisition of 118 800 in Sweden Change in accounting principles in pension obligations and reporting structure Eniro Deals will be hosted through third-party co-operation Divesture of Eniro Buy & Sell service Completion and implementation of Eniro brand project Product Launch of Eniro for ipad Print re-scooping Strengthened position within the strong growing mobile segment Build-up of sales force within Mediaproducts 10
FINANCIAL GUIDELINES DE GULE SIDER, DENMARK Estimated turnover for FY 2012 of some SEK 100 M (Order intake 12 rolling months higher) Estimated EBITDA impact for 2012 above SEK 10 M Consolidation of Danish operation 11
THE TURNAROUND PLAN 2010 2011 2012 Organic revenue decline less than 15% Organic revenue decline close to 10 percent Returning to total revenue growth Total cost base reduction of approx SEK 350 M vs. total costs 2009 1 Actuals in line with guidance Total cost base reduction of approx SEK 350 M vs. total costs 2010 1 Actual top-line in line with guidance Cost reductions ahead of guidance, 458 MSEK EBITDA 2012 inline with outcome 2011 Total cost base reduction of approx SEK 200 M vs. total costs 2011 2 1) Assuming unchanged currencies and for comparable units 2) The planned cost savings do not include effects from divestments and acquisition of operations, or the higher third-party costs that arose as a result of the strategic shift in the revenue mix to higher revenues from third-party partnerships. 12
REVENUE BRIDGE Q1 2012-7.8% 1,015 8 51 71 966 9 7 7 0 23 936 23 959 Reported revenues 2011 Divested business Currency effects Moved publications Organic baseline 2011 Online/ mobile Print Media Other Voice Revenues ex. acq. +2-30 +14-1 -11 Acq. Reported revenues Q1 2012 Revenue effect from divested operations, currency and moved publications, totaled SEK 49 M Revenues decreased by 8% organically Revenues from digital 77% of total Eniro excl Voice Voice down -11% organically, but margin up to 31,1% due to price increase and high efficiency 13
COST SAVINGS 845 12 3 836 8-59 828 59 777 16 26 803-67 761 Operating costs 2011 Divested 3 rd party cost Currency effect Organic baseline 2012 Net Savings Q1 Adj Operating cost 2012 YTD Acquired Operating cost 2012 YTD Cost Including dgs Total savings SEK 67 M in Q1 2012 Of which Staff SEK 30 M, Print and Paper SEK 10 M, Marketing SEK 13 M 960 MSEK in cost savings during the last two and a half year 14
Revenue overview Revenues by category 2012 2011 2011/12 2011 SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec Total revenues 959 966-1 4 316 4 323 Directories 776 761 2 3 439 3 424 Online/mobile 513 479 7 2 042 2 008 Print 172 189-9 1 034 1 051 Media products 54 47 15 195 188 Other products 37 46-20 168 177 Voice 183 205-11 877 899 Revenues by country 2012 2011 2011/12 2011 SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec Total revenues 959 966-1 4 316 4 323 Sweden 450 455-1 2 042 2 047 Norway 310 333-7 1 263 1 286 Denmark 104 73 42 503 472 Finland 58 64-9 278 284 Poland 37 41-10 230 234 15
EBITDA overview EBITDA by revenue area 2012 2011 2011/12 2011 SEK M Jan-Mar Jan-Mar % Apr-Mar Jan-Dec Total EBITDA 156 122 28 1 065 1 031 Directories 126 84 50 812 770 Voice 57 53 8 348 344 Other -27-15 80-95 -83 of which items affecting comparability Restructuring costs 4 12-67 35 43 Other items affecting comparability - - - 4 4 Total adjusted EBITDA 160 134 19 1 104 1 078 16
PREPAID REVENUES; BALANCE SHEET 1 400 1 275 1 200 1 233 1 190 1 145 1 000 1 089 1 049 1 083 1 117 1 073 948 1 031 1 042 800 600 Prepaid revenues in line with Q4 17
CHANGE IN NET DEBT Analysis of interest bearing net debt ------ 3months ----- - -12months- 2012 2011 2011/12 2011 SEK M Jan-Mar Jan-Mar Apr-Mar Jan-Dec Opening balance -3 535-3 756-3 775-3 756 Operating cash flow 13-78 321 230 Acquisitions and divestments 26 26 0 0 Share issue -1-9 -2-10 Translation difference and other changes -18 42-59 1 Closing balance -3 515-3 775-3 515-3 535 Net debt /EBITDA adjusted for other items affecting comparability, times 3,3 3,3 3,3 3,4 Operating cash flow in Q1 increased by 91 MSEK Net debt/ebitda 3.3 (6.8) Q4 3.4 18
FOCUS IN ENIRO Focus areas Meaning Main initiatives 2012 Market position With the customer in focus, we develop our services and make our advertisers searchable 24/7 Updated brand platform Desirable product portfolio Leading in mobile Attractive employer Quality Stability, relevance and simplicity in all that we do Content program Quality in focus Web analytics Improved customer experience Culture program Profitable growth Eniro grows with focus on both revenues and costs Priority of existing customers Sales channel optimization Cost optimization 19
MEDIA MARKET DEVELOPMENT IN SWEDEN IRM forecasts for 2012 slightly adjusted Growth within online/internet media continues to outperform market average Eniro within the long-tail mass market segment for small- medium sized companies % 15 12,1 10 5 0 0,3 6,2 7,8 10 5,6 1,5 8,4 4,8-0,1 (-0,4ppt) -5 2000 2001-5,8 2002-3,8 2003 2004 2005 2006 2007 2008 2009 2010 2011E 2012E -10-15 Source: IRM -12,5 20
OUTLOOK FOR 2012 Revenues Total revenue growth in 2012 EBITDA EBITDA for 2012 in line with 2011 Cost reductions Net cost reductions 1 of SEK 200 M in 2012 Dividend and capital structure Priority will be given to the reduction of net debt 1) The planned cost savings do not include effects from divestments and acquisition of operations, or the higher third-party costs that arose as a result of the strategic shift in the revenue mix to higher revenues from third-party partnerships. 21
APPENDIX
YELLOW USAGE eniro.se Weekly sessions, monthly average 1600000 1400000 1 306 039 1200000 User se essions 1000000 800000 600000 400000 200000 0 2012 2011 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 23
YELLOW USAGE gulesider.no Weekly sessions, monthly average 1 200 000 1 000 000 927 382 User ses ssions 800 000 600 000 400 000 200 000 2012 2011 2010 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 24
YELLOW USAGE Krak Denmark Weekly sessions, monthly average 800 000 738 966 700 000 User se essions 600 000 500 000 400 000 300 000 200 000 100 000 0 2012 2011 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 25