PagesJaunes Groupe Presentation June 2005 1
Notice This document contains forwardlooking 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 forwardlooking statements include: 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 Référence of PagesJaunes S.A. filed with the French financial markets authority (AMF) under the number R. 05034 on 30 March 2005. A description of the objectives of the PagesJaunes Group appears in chapter VII of the Document de Référence. The forwardlooking 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 are presented on an unaudited pro forma consolidated basis (including PagesJaunes S.A., Kompass France, QDQ Media, Mappy S.A., Wanadoo Data and Eurodirectory S.A.); QDQ Media and Mappy S.A. are consolidated with effect from their date of entry in the France Télécom consolidated group and the pro forma financial data reflect the cash acquisition prices of these entities. Presentation June 2005 2
PagesJaunes Groupe: FY 2004 Key Figures Growth Revenue growth (1) Net income growth (1) +7.3% +25% Profitability & Cash Generation Net revenue (2) Gross operating margin (2) Net cash from operations (3) 978m 405m 286m Yield Dividend per share (DPS) Dividend yield (4) 0.93 5% A combination of growth and yield (1) 2004 versus 2003, under French GAAP (2) 2004, under IFRS (3) 2004, under IFRS and excluding 72 million tax payable in 2005 (4) DPS divided by PagesJaunes Groupe share price Presentation June 2005 3
PagesJaunes: Unique Position in Local Advertisement Media Market 90% of French people aged 15 years and above owns the PagesJaunes directory (1) 81% of the consultations of the PagesJaunes directory is followed by a business contact (1) 48% of searches on PagesJaunes directory leads to a transaction or a purchase (1) The directory, an economic model based on a «virtuous circle» (1) Source: Baromètre ISL/crédoc 2004 (2) Source: PagesJaunes Groupe 2004 Presentation June 2005 4
PagesJaunes in France: Quality Assets High recognition of the PagesJaunes brand Substantial commercial resources: 1,720 sales representatives Secondlargest company in terms of advertising revenues in France (1) 9% 8% 7% 6% 5% 4% 3% 2% 1% Growth rates of PagesJaunes vs the advertising market in France (1) +7.2% Advertising revenues diversified in terms of category of advertiser and platform 0% 1% 2000 2001 2002 2003 2004 Advertising market PagesJaunes(2) PagesJaunes has outperformed the advertising market in France in the last 4 years (1) (1) Source: France Pub (2) Advertising revenues Presentation June 2005 5
PagesJaunes in France : New Advertisers and Rising ARPA (1) Number of advertisers of PagesJaunes in France ( 000) ARPA (1) of PagesJaunes in France 548.2 583.8 560.5 561.2 1,477 1,533 1,384 1,342 +4.0% +3.8% 2001 2002 2003 2004 2001 2002 2003 2004 20% penetration rate (2) in 2004, +1 percentage point compared to 2003 (1) Average Revenue per Advertiser (2) 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 Presentation June 2005 6
PagesJaunes in France : Peer Group Penetration Rate Yellow pages penetration rate in Europe in 2004 (1) Denmark 30% Netherlands 28% Italy 25% UK 24% France(2) 20% (1) Source: The Kelsey Group Global Yellow Pages 2005 : The Kelsey Group s Outlook & Forecast May 2005 (2) 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 Presentation June 2005 7
PagesJaunes in France: Regulated Professions Prospects Regulated professions (1) versus Group key indicators in 2004 All headings o/w regulated professions (1) 1,511 20% 6% 400 Penetration rate(2) ARPA (3) Regulated professions (1) : <1% of total revenues in France (1) Lawyers, charted accountants, doctors, dentists, notaries, vets and bailiffs (2) 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 (3) Average Revenue Per Advertiser Presentation June 2005 8
PagesJaunes in France: Growing Business on Internet Pagesjaunes.fr ARPA (1) Number of advertisers on pagesjaunes.fr ( 000) 511 318.9 297 380 242.6 279.5 +34% +14% 2002 2003 2004 March 2003 March 2004 March 2005 A No bundle policy between printed and online directories (1) Average revenue per advertiser Presentation June 2005 9
PagesJaunes in France: Leading Online Directory (1) 450 Number of monthly unique visitors (1) (base 100 = Sept. 2001) French Internet websites in April 2005 (1) google.fr Reach rate 65.5% Ranking 1 400 wanadoo.fr 56.1% 2 350 300 free.fr msn.com msn.fr 54.8% 41.9% 38.8% 3 4 5 250 200 150 100 50 0 Sept. 2001 April 2005 voila.fr 37.5% 6 34.8% 7 pagesjaunes.fr 34.8% n 7 microsoft.com 34.0% 8 passport.com 30.7% 9 lycos.fr 29.7% 10 yahoo.fr 29.6% 11 26.9% 12 mappy.com 26.9% n 12 ebay.fr 24.7% 13 impots.gouv.fr 23.9% 14 Pagesjaunes.fr Total Internet users tiscali.fr minefi.gouv.fr 23.3% 22.2% 15 16 (1) Source: Nielsen//Netratings Home & Work April 2005 Presentation June 2005 10
PagesJaunes in France: Favourable Advertiser Mix Advertiser mix in 2004 Print 28.0% 17.5% 4.5% 44.0% 1.5% 3.0% 1.5% Minitel Internet 1 advertiser in 2 is a customer of the printed directory and pagesjaunes.fr Presentation June 2005 11
PagesJaunes in France: Steady Growth in Printed and Online Directories 100.3 PagesJaunes in France revenues for the first quarter 2005 (million euros) 103.8 +3.4% 52.8 37.2 23.0 4.3 +42% 16.0 31% 5.1 Q1 2004 Q1 2005 Printed directories Minitel services Internet services(1) Others Q105 revenues: 177.6 M (+7.7%) (1) pagesjaunes.fr et websites creation revenues Presentation June 2005 12
PagesJaunes in France: Costs Under Control Costs of services and products sold (in million euros) 207 189 8.8% Slight decrease in volumes Favourable price effect, particularly on paper Cost base 39% Discontinuation of annual fee to Havas ( 9.1 million in 2003) 2003 2004 Commercial costs (in million euros) 234 254 +8.4% Increase of 10.4% in the sales force 52% Control of advertising investment 2003 2004 Presentation June 2005 13
International & Subsidiaries: Recovery at QDQ Media (Spain) 30.6 Revenues of QDQ Media (in millions of euros) 38.8 32.0 36.5 Rationalisation of the customer portfolio: 74,311 advertisers in 2004 QDQ.com: 10% of revenues in 2004 against 6% in 2003 2001 2002 2003 2004 EBITDA of QDQ Media (in millions of euros) 2002 2003 2004 Improvement in commercial productivity: ARPA +20% in 2004 Reduction in publishing costs and overheads 34.9 34.5 13.0 Return to growth and reduction in costs Presentation June 2005 14
PagesJaunes in France: Main Initiatives Commercial Activity Continued recruitment of new sales personnel and deployment of Prospects field sales force Continued promotional activity aimed at regulated professions Printed Directories Extension of pocket directories in Marseille, Lyon and Lille Publication of the universal directory awarded to France Télécom and PagesJaunes Groupe Internet Services Development of new products ( En Savoir + websites, etc.) Launch of ville en direct service on pagesjaunes.fr Gratuity of PagesJaunes services on mobile phones Presentation June 2005 15
PagesJaunes in France: Plan to Launch Directory Enquiries Service Market estimated at 270 million calls per year (1) Evolving regulatory environment PagesJaunes: numerous competitive advantages Natural extension of PagesJaunes multiplatform strategy Effective launch of service in fourth quarter of 2005 Growth lever from 2006 (1) Source: PagesJaunes Groupe Presentation June 2005 16
International & Subsidiaries: Outlook BtoC Directories QDQ Media: continued recovery and reduction of EBITDA loss Editus Luxemburg: proportional consolidation Kompass Activities Kompass France: development of Internet revenues and improvement in commercial productivity Kompass Belgium: consolidation Relationship Marketing & Geographic Services Relationship Marketing: development of marketing database hosting through the integration of esama Geographic Services: income stream from audience of mappy.com (France, Belgium, Spain) Presentation June 2005 17
PagesJaunes Groupe: Financial Targets Consolidated revenue growth of 57% in 2005 Consolidated Gross Operating Margin growth more than 10% excluding directory enquiries service in 2005 Reaffirmed target of Gross Operating Margin 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 (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 Presentation June 2005 18
Appendices 19
A Q105 Revenues (1/2) (In millions of euros) Period from 1/1 to 31/3 2005 2004 Change 2005/2004 PagesJaunes in France 177.6 164.9 7.7% On comparable publication basis 177.6 164.9 7.7% Printed directories 103.8 100.3 3.4% PagesJaunes 82.4 79.2 4.0% The Annuaire 21.4 21.1 1.4% Online services 68.7 60.2 14.2% Internet 52.8 37.2 41.7% Minitel 16.0 23.0 30.6% Other revenues 5.1 4.3 16.8% International & Subsidiaries 22.8 18.8 21.2% On comparable consolidation and publication basis 22.8 21.0 8.4% Intersegment (0.4) (0.3) Consolidated revenues 20 183.3 9.1% On comparable consolidation and publication basis 20 185.5 7.8% Presentation June 2005 20
A Q105 Revenues (2/2) (In millions of euros) Period from 1/1 to 31/3 2005 2004 Change 2005/2004 PagesJaunes in France 177.6 164.9 7.7% On comparable publication basis 177.6 164.9 7.7% International & Subsidiaries 22.8 18.8 21.2% On comparable consolidation and publication basis 22.8 21.0 8.4% B to C directories 10.7 9.8 8.6% On comparable consolidation and publication basis 10.7 9.7 11.1% of which QDQ Media 10.4 9.8 5.7% On comparable publication basis 10.4 9.3 12.0% Kompass businesses 6.7 5.4 25.5% On comparable consolidation basis 6.7 6.3 7.5% Relationship marketing and geographic services 5.3 3.6 49.8% On comparable consolidation basis 5.3 5.1 4.3% Intersegment (0.4) (0.3) Consolidated revenues 20 183.3 9.1% On comparable consolidation and publication basis 20 185.5 7.8% Presentation June 2005 21
A Preliminary IFRS Figures: Pro Forma 2004 Income Statement (in millions of euros) Under French standards Adjustments / Reclassifications Under IFRS Net revenues 984.1 (6.0) 978.1 External purchases (329.3) 6.0 (323.3) Other operating income and expenses 31.3 (5.0) 26.1 Wages and employee benefit expenses (272.5) (3.3) (275.8) Gross operating margin 413.4 405.1 Employee profitsharing (29.9) (29.9) Sharebased compensation (25.3) (25.3) Depreciation and amortisation (10.3) (10.3) Impairment of goodwill Impairment of noncurrent assets Gains (losses) on disposals of assets (0.4) (0.4) Restructuring costs Share of profits (losses) of associates 0.8 0.8 Operating income 403.1 (63.1) 34 Financial income 18.5 0.3 18.8 Share of profits (losses) of associates 0.8 (0.8) Other net nonoperating income (expense) (9.6) 9.6 Employee profitsharing (29.9) 29.9 Amortisation of goodwill (5.9) 5.9 Income tax (148.8) (148.8) Net income 228.2 (18.1) 210.1 of which minority interests Presentation June 2005 22
A Preliminary IFRS Figures: Pro Forma Income Statement By Segment (in millions of euros) PagesJaunes in France segment International & Subsidiaries segment Intersegment Consolidated 2004 IFRS Net revenues 903.9 76.6 (2.4) 978.1 External purchases (288.4) (37.3) 2.4 (323.3) Other operating income and expenses 29.8 (3.7) 26.1 Wages and employee benefit expenses (231.4) (44.5) (275.8) Gross operating margin 413.9 (8.8) 405.1 Employee profitsharing (29.4) (0.5) (29.9) Sharebased compensation (23.5) (1.8) (25.3) Depreciation and amortisation (6.7) (3.6) (10.3) Impairment of goodwill Impairment of noncurrent assets Gains (losses) on disposals of assets (0.4) (0.4) Restructuring costs Share of profits (losses) of associates 0.8 0.8 Operating income 354.0 (14.0) 34 Presentation June 2005 23
A Preliminary IFRS Figures: Pro Forma Cash Flow Statement (in millions of euros) Under French standards Adjustments / Reclassifications Under IFRS Net cash from operations 358.3 358.3 Net cash used in investing activities (12.6) (12.6) Net cash associated with financing activities (179.0) (179.0) Net variation in cash and cash equivalents 166.7 166.7 Effect of changes in exchange rates on cash and cash equivalents Cash beginning of period 461.1 461.1 Cash end of period 627.8 627.8 Presentation June 2005 24
A Preliminary IFRS Figures: 2004 Consolidated Balance Sheet (Assets) ASSETS (in millions of euros) Goodwill Intangible assets Property, plant and equipment Interests in associates Other long term financial assets Deferred tax assets Total noncurrent assets Inventories Trade receivables Other receivables Current tax assets Prepaid expenses and other current assets Other short term financial assets Cash Total current assets TOTAL ASSETS Start of period 1/1/2004 1.2 3.6 15.3 2.5 1.7 24.5 48.9 6.8 371.8 20.7 27.0 54.3 12.5 581.9 1,075.0 1,124.0 End of period 31/12/2004 77.5 8.4 16.8 15.5 3.8 26.1 148.1 12.4 430.8 26.8 0.1 57.4 0.9 644.1 1,172.4 1,320.6 Presentation June 2005 25
A Preliminary IFRS Figures: 2004 Consolidated Balance Sheet (Liabilities) EQUITY & LIABILITIES (in millions of euros) Share capital Additional paidin capital Retained earnings Net income for the year Total Equity Provision for employee benefit costs Provisions Total noncurrent liabilities Current portion of longterm debt Bank overdrafts and other shortterm borrowings Provisions Trade payables Employee liabilities Other payables Other current liabilities Current tax payable Deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES Start of period 1/1/2004 54.8 42.2 235.2 332.2 17.2 7.7 24.8 3.8 11.6 4.1 107.3 78.7 78.5 1,7 16.0 465.3 766.9 1,124.0 End of period 31/12/2004 55.8 68.3 49.8 213.6 387.5 22.1 8.3 30.4 3.8 10.7 0.2 107.0 82.0 87.2 4.1 72.1 535.4 902.6 1,320.6 Presentation June 2005 26
A Structure of the Group PagesJaunes Groupe PagesJaunes SA B2C directories 100% 100% QDQ Media B2C directories in Spain Kompass France B2B directories 100% 100% Mappy Geographic services Kompass Belgium B2B directories 100% 100% Wanadoo Data Direct marketing PagesJaunes Liban* B2C directories 100% 100% Esama Direct marketing PagesJaunes OutreMer* B2C directories 100% 100% Eurodirectory 49% Editus Luxembourg B2C directories * Nonconsolidated subsidiaries in 2005 Presentation June 2005 27
A Shareholding Structure of PagesJaunes Groupe Shareholding structure of PagesJaunes Groupe 44.6% 54.0% 1.4% France Telecom Public Employees 278.8 million shares Presentation June 2005 28
A Glossary EBITDA: Earnings before interest, taxes, depreciation and amortisation Gross operating margin: revenues less external purchases, operating expenses (net of operating income) and wages and social charges. The wages and social charges included in the gross operating margin do not include employee profitsharing or the cost of sharebased payment. Pro forma: the consolidated pro forma figures include the figures relating to QDQ Media and Mappy since January 1, 2004. 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: the publication schedule for the printed directories of QDQ Media in the first quarter of 2005 is not comparable to that of the first quarter of 2004. Comparable consolidation basis: the revenues of the International & Subsidiaries segment in the first quarter of 2005 include several additions to the consolidated group: esama (from February 1, 2005), Editus Luxembourg (proportionally consolidated from January 1, 2005) and Kompass Belgium (from January 1, 2005). To arrive at a comparable consolidation basis, the revenues for the first quarter of 2004 have been recalculated using the scope of consolidation applying in the first quarter of 2005. Presentation June 2005 29
A Diary Dates and Contact Details 2005 diary dates: Firsthalf results 2005: July 27 Thirdquarter revenues 2005: October 26 Investor Relations: Vincent Gouley +33 1 46 23 40 92 vgouley@pagesjaunes.fr http://www.pagesjaunesgroupe.com Presentation June 2005 30