publigroupe investors' day 4 december 2012

1

PubliGroupeInvestors' Day 2012Lausanne, 4 Dec 2012

2

SpeakerTheme

Intro / Market Analysis / Strategic Overview

Shaping a digital & mobile future— Driving digital and mobile growth— Developing new businesses

Time

30 min.

20 min.10 min.

A. Groth, CEO PubliGroupe

R. Petrikowski, CFO PublicitasCh. Morgan, Head P-Digital

Group

Segments

BREAK |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| ||||||||||||||||||||||||||||||||||||||||||||||||||||||| 30min.

E. Baehler, CEO local.chR. Martignoni, COO DMS

20 min.20 min.

Share buy-back programme & other finance

Concluding remarks

Q&A PART 2

End official part

Group A. Schmidt

A. Groth

20 min.

10 min.

.

Overview presentation order

Anticipating changes in print and media— Seeking efficiencies and automation— Strengthening the digital portfolioQ&A PART 1

Demo Improve Digital J. FrijtersCEO Improve Digital

30 min.

3

Preparing the Groupfor the digital marketing world

PART GROUP

Arndt C. GrothCEO PubliGroupe

4

Market conditionsin constant change

Situation analysismarket

01

5

Rapid change, in particular in print, requires Group to prepare faster for future ad market

Massive pressure on print Long term structural pressure, especially on print Stronger than expected decline 2012-15

Digital “wins” and impacts all sectors Digital media win RTA, mobile, social as key trends in digital Digital is setting scene also for other segments

Competitors move fast in complex landscape Value chain highly fragmented & specialised Large players like Google covering key positions Other sales houses invest in 360° marketing

capabilities and tech-based solutions

1

2

3

Key advertising trends

The scenario we are expecting for

‘advertising 2020’

Majority of digital inventory will be traded through automated platforms

Especially premium will remain people business, though with higher degree of centralisation

Efficiency, creativity and comprehensiveness will win

62012e

1,803

550

2011

2,004

543

2010

2,001

533

2009

1,915

517

2008

2,406

527

2007

2,487

516

2006

2,369

497

2005

2,299

479

2004

2,294

467

2003

2,302

455

Latest, apparently structural, loss of print ad revenues went beyond expectations

Source: WEMF; Stiftung Werbestatistik Schweiz; IMF; SECO; OC&C analysis1. GDP calculation based on production statistics

Print ad-spend vs. GDP, Switzerland

Ad spend print in CHF mGDP in CHF bn1

-0.1%

-12.3%

2.3%

4.0%

2.6%

2.5%0.1%3.8%

1.3%

Forecast

-10.0%

1 Massive pressure on print

Since 2008 Publicitas lost 15% top line

print revenuesin average yoy

7

Recent decrease of print exceeded expectations and appears to be accelerating

1 Massive pressure on print

-16%

-10%

-16%

1%

-3%

-7%-6%

0%

-3%

-6%

Ø -10%

Sep.Aug.Jul.Jun.May.Apr.Mar.Feb.Jan.

Source: WEMF; Stiftung Werbestatistik Schweiz; SECO; IMF; OC&C analysis

Swiss display ad revenues in print2012 vs. 2011

Print outlook 2013

Expectation for print 2012

“Last Investors’ Day”

Increasing momentum!

“Also depending on GDP development”

-2%-

+1%

-5%-

-10%

Oct.

Ø -8%

8

Market trends – Online double digit growth In Europe, substantial growth expected in video and mobile

Ad Spend, EMEA, 2011EUR€ bn1, % share per medium CAGR

2011-16F

100.2

Total 2011

13.6

Online Other

20.5

RTV

35.3

30.7

Print

9.6

5.5

4.4

2011

20.5

2015F2014F

1,6Classified +9%

Display +13%

7.0

Search +12%

10.7

2016F

5.2

11.9

1.3

5.7

6.2

29.9

4.8

Mobile +32%

15.0

9.08.0

23.2

+13%

26.3

2012E

6.2

2013F

13.4

2,01.633.8

16.6

10.1

6.7

2,52.037.8

Video +34%

Ad Spend, EMEA, 2011-2016FEUR€ bn1, % share per online medium

Source: PwC, October 2012, DMS analysisNote: 1) In 2011 Euros, converted from US$

2 Digital “wins” and impacts all sectors

9

Digital, mobile, automation and social key trends

Premium

Mid-Tail

Rest

SegmentedInventory

Mobile / small screen Social

Main area of inventory growth

Big oppor -tunity e.g. for local.ch

Challenge for display advertising as new models need to be found

…has surpassed traffic on portals in US

… is winning market share in display in most geographies

Social successful on mobile


Broadscreen RTA

Share of RTA display sales increasing

Instead of sales skills, platform and technology skills are needed

“SALES”

10

Marketing Targets

Awareness Interest ActionDesire

CPMCost per Mille

ContactsReach

CPCCost per Click

Visitors

CPSCost per Sale

Sales

Display / BrandAdvertising

SearchAdvertising

PerformanceAdvertising

Digital covers all marketing disciplinesPerformance-based models highly attractive to advertisers

CPC

Cos

t per

Clic

k

CPL

Cos

tper

Lea

d

CPO

Cos

tper

Ord

er

CPA

Cos

tper

Act

ion

Performance Model


11

Traffic Creation Lead

Generation Action

CPC CPL CPA

BrandAwareness

CPM

Banner AdsText Ads

EmailContextual Ads

Keywords

CreativesUser

Right strategy mix is neededCombination of branding + transaction leads to success


12

Agency PublisherDemand-

SidePlatform

Supply-Side

Platform

Ad Exchange

Ad Network

AgencyTrading

Desk

Digital ecosystems increasingly complexFragmentation across the entire digital display ecosystem

Source: IAB; Google; Press

AD

VER

TISE

R

AU

DIE

NC

E

3 Competitors move fast in complex landscape

13

Other ad marketers are transforming at high speed: Video, agency services and platforms in focus

Source: Company information; press

Acquisitions &

Foundations

Own Products &

Developments

Foundation of creative agency "Sugar Ray"

Acquisition of Adyard (Postviewmarketer) in 2010

Expansion in the area of video advertising

Commercialisation of HbbTV

Mobile special advertising formats ("G+J ConnectAd" )

Performance-oriented campaigns (“optimobile”)

“Expansion of TV commercials towards cross-linked, multimedia commu-nicationconcepts”

“Expansion of the growth and future-oriented mobile advertising segment”

Ringier bundles all magazine ad sales in one unit

ToFo Media invests in studies on ad effectiveness, mobile products and wins new 3rd party clients

8 regional German newspaper groups form alliance for national ad sales

“Centrali-sation, ad efficiency and mobile”

Competitive trends

3

Participating in the ad network Ad Audience

Tailor-made cross-media solutions

Cover own and client inventory

Invest in platforms

“Expand scope to 360°cross-media solutions built on a broad inventory of own and clients’ titles”

Other

Competitors move fast in complex landscape

14

Group with broad range of assets, refocus needed

Situation analysis

PubliGroupe

02

15

PubliGroupe with a wide range of activitiesOrganised into three segments that operate mostly independently

Search & Find

Producer and seller of media products facilitating the search for persons, companies, productsand services focusing on local markets.

Digital & Marketing Services

Portfolio of leading international marketing and technology service companies, helping brand owners to spend marketing budgets more effectively.

Media Sales

Partner for media owners and advertisers worldwide, using effective advertising solutions.

*

* Improve Digital acquisition pending COMCO approval

16

In 2012 PubliGroupe executed on Group level…All Group issues addressed and executed

Corporate Governance

Sale real estate

Change accounting standard

Dividend

— End of double mandate of HP Rohner— Announcement made to end voting restrictions after restructuring of Publicitas,

latest by 2014

— Divested 4 assets in 2012: 3 Lausanne buildings, 1 in Bern— Sale proceeds to be returned to shareholders; intention to return CHF 45 m to

shareholders through share buyback and special dividend

— Switched accounting standard from IFRS to Swiss GAAP FER — Media Sales and DMS (SVBmedia) revenue disclosed as commission earned

instead of the total billing of ad space, providing for more transparency

— Strong dividend return upheld in 2012 with the distribution of the amount of CHF 6 per share, composed of a dividend of CHF 3.80 and of CHF 2.20, distributed tax-free from reserves from paid-in capital.

PubliGroupe execution of its strategic cornerstones

17

Media Sales

Search & Find

DMS

Corporate & Others

— Operational savings of CHF 10 m vs. 2011; In 2013, further cost reductions already implemented of CHF 16 m

— Starting in 2013 FTE of 1,040 vs. to 1,196 at the end of 2011— Developed and launched new digital products such as Ad4MaxGeo, The Mark

— Further strong growth of digital revenue, whereby online revenue keeps at double digit pace; online order intake outperforms print

— Uncontested #1 on mobile with > 2 m downloads; 42% ahead on No. 2 with apps in use for iOS in October 2012

— Successful entry into new areas (restaurant booking and web site production)

— Focus sharpened towards technology-oriented scaleable business models with sale of Namics and acquisition of Improve Digital *

— Zanox extended market lead in performance advertising— Entered fast growing RTA market with Spree7 / Improve Digital*

Segment execution of its strategic cornerstones

— Continued divestment of non-strategic assets

… and strengthened operational assetsRestructuring Media Sales, strengthening leadership positions of local.ch and Zanox, while investing in growth fields SSP and DSP


18

Media SalesSearch & Find DMS

Positioning

Strategy

Ready for 2020

However, still huge differences between segmentsS&F and DMS well positioned, refocus needed at Publicitas

19

Agency PublisherDemand-

SidePlatform

Supply-Side

Platform

Ad Exchange

Ad Network

AgencyTrading

Desk

Digital display ecosystem and selected PubliGroupe investments

PubliGroupe well represented in complex ecosystemPubliGroupe with stakes across the entire digital display ecosystem

Source: IAB; Google; Press

AD

VER

TISE

R

AU

DIE

NC

E

"TheMark"

*


20

To play key role in digital advertisingmarket

Strategy

03

21

Group positioningAdvertising revenue remains key monetisation driver for content owner

•It‘s not about e-commerce•But media services around media buying and selling•Connecting Supply and Demand

Media is the DNA

•Disintermediation of sales houses leads to automisation•As a result need to offer self service solutions•Data is a going to be a key USP

Owning the end to end relationship between supply

and demand

•IT-platform for print ad processing•Automated trading platform (DSP or SSP technology)•CRM-Tools, media-buying and -planning software and services

Operating the technological platforms for publishers,

agency and advertiser partners

•Premium media cannot be fully automised•Every publisher contract and each single order needs to be profitable•In shrinking markets outsourcing is becoming even more important

Premium media sales where appropriate

•Exclusive contracts will only apply if we’ll get a premium to run the business really profitably

•Applying the arbitrage model to realise higher margins

Entrepreneurial independency (i.e. with excl. publisher

contracts)

Optimiseinternational network

•Huge opportunity for Publicitas International in Digital Media•New content owners not prepared for ad sales•Very few remaining competitors in premium media

22

PubliGroupe must manage strategic shiftIn order to achieve profitable, sustainable business position

23

Based upon trends and priorities, focus on following strategic themes going forward

Further develop mobile & digital offering

Invest in transaction-oriented fields (ieonline booking)

Increase sales force efficiency and effectiveness

Search and Find

Redefine publisher relationships to obtain operational autonomy

Accelerate growth initiatives and growing digital

Further harmonizing processes + IT

Media Sales

Capitalise on Zanox leadership in Europe

Materialise on key trends - RTA, mobile, data

Strengtheningportfolio through M&A

Digital Marketing Services

Leaner group structure

Management of non-strategic asset

Corp & Others

“Transformation and growth in sales and services”

PubliGroupe

24

Holding Structure – Status QuoThe business segments are treated differently

Media SalesSearch and Find DMS

Operations

Strategy

Finance

Holding Function

25

Holding Structure – ObjectiveEqual treatment of all business segments

Media SalesSearch and Find DMS

Operations

Strategy

Finance

Holding Function

26

PubliGroupe as lean holding going forwardFocus on financial, M&A and innovation functions,strengthening operational management on business level

CEOA.C. Groth

Media Sales Search & Find

CFOA. Schmidt

Head of HRB. Schleipen

General Secr.J.-D. Briod

Head of CCB. Werder

Head of CDR. Martignoni

Board

BoardBoard

**

*

*

*

* Member of PubliGroupe Executive Committee effective Jan 1st, 2013

Zanox

Board

Other: ID SVB

Board

DMS

27

PubliGroupe Target indicator

Target 2015 Result 2011 *

Profitability Operating result CHF 40 - 50 m CHF 21.9 m

Earnings per share ** CHF 12 - 17 CHF 9.1

Group KPIs (on Swiss GAAP basis)Financial objectives for Group

* restated, Swiss GAAP FER

** 2015: after share buy-back programme

28

Key immediate actions

What How

1. Holding

2. Publicitas

- Leaner holding, reduced FTE count- Refocus on key activities- Increase speed of innovation and reinforce

corporate development on Group level

A) Strengthening management- Operate through Board only- Fill open executive positions

B) Transform business model- Redefine publisher relationships to obtain

operational autonomy- Continue restructuring as client-facing

organisation- Ongoing right-sizing to anticipate market

development

29

Reducing costs, redefining publisher relationships & accelerating digital

PART MEDIA SALES

Rüdiger Petrikowski, Chris Morgan CFO Publicitas Head of P-Digital

Situation, mid-term objective and measuresPublicitas is continuously reducing its cost base and accelerating growth initiatives in Switzerland and internationally

Situation

• 2012 a year with a loss of around CHF 22 m due to a much stronger market decline than expected and loss of market share

• Expected net revenue decline 2011/12 of around CHF 26 m

• Savings of announced measures of CHF 10 m achieved. Not sufficient for 2012, however with additional impact of CHF 16 m in 2013

Mid-term objective

• Move to portfolio sales addressing broader advertising segments

• Grow share of non-print/digital net revenue significantly

Measures

• Redefine publisher relationships to obtain operational autonomy

• Ongoing right-sizing to anticipate market development

• Accelerate growth initiatives in Switzerland and internationally

Print advertising CH1

Market environment 2012 SwitzerlandPublicitas suffers from a strongly decreasing print market accompanied by an insecure economic situation

667

595

-10%

Daily, weekly regional, and

Sunday papers

Professional,specialized,

consumer, finance,business press

2012e

1’803

1’208

2011

2'004

1’337

1) PWC Swiss Entertainment and Media Outlook 2012–2016

Internet advertising CH1

12

10

Digitalnewspaperadvertising

16

Classifieds

Banner/Display

2011

Mobile

769

2012e

6175

362

176

101

29Affiliate

805

-19%

Video

Search

+5%

401

195

8418 34

CHF m CHF m

Major effects on 2012 operating resultSavings of announced measures of CHF 10 m achieved, with noticeable effect for 2013

-5

-5

0

~-16

+10~-26

~-22

-6

Other effectsNon-recurringOp. Result

ACT 2011 Net revenuedecline

Realised Opexsavings

2012e

Effect of initiatives in 2013 Valuable starting point for a break-even result whilst anticipating a 8% downturn in the Swiss print market

Cost measures

Right-sizing to anticipate market development effective 2014 (partly compensated by digital build up)

Growth initiatives

ongoing

Digital growth in Switzerland and Europe driven by the real time advertising sell side platform

Implemented: Personnel reduction effective beginning 2013

Implemented: Overhead and IT reduction

>16 m

2 m

10 m

6 m

Op. resulteffect 2013

in CHF

Customer and portfolio expansion in TV, OOH, digital 3-4 m

5-6 m

1

2

Organisation adapted to the market downturnSmaller and leaner organisation in 2013

388

~45

~370

Closing 2011

1.196

748

31 29

Beginning 2013

~1.040

~600

~25

-150 FTE

-20%

Publicitas CHCinecom

Dedicated digital CHInternational Network

FTE

• Full year effect 2013 of a smaller and leaner organisation

• Operational efficiency secured through centralisation

• Build up of digital competences

• Further adaptation according to market development with a shift from print to online capabilities

1

2

3

4

Implemented leaner organisation

Strategic initiatives 2012Leaner cost base anticipated for 2013 & new products launched

Acceleratethe digital agenda& explore new opportunities:

Higher share of digital turnover and adjacent media sales business

Exploit print business:

Leaner and more flexible cost structure

1st PILLAR

2nd PILLAR

Transparent service levels and fair pricing• Publisher negotiations ongoing

Grow Digital• At least in line with the

market

Grow new business• Expand in adjacent business

Objectives AchievementsSwiss business• Process harmonisation• Centralisation of sales back-office • Improvement of sales efficiency

International• Divesture and restructuring

Central cost• Optimisation of admin services• Optimisation of IT

• Completed• Depending on publishers• Organisation implemented with

time delay

• Americas implemented• Europe stronger efforts needed• Completed• Implementation for Jan.'14

• Digital resources unified• New products launched• Mobile initiative started

• Acceleration of local OOH business in India

• Acceleration of TV business in Asia

Business challenges of representation businessA dedicated sales approach limits scalability due to asymmetric interest between publishers and Publicitas

Title 5(mono-media)

• Limited scalability due to lack of operational autonomy

• Low resource utilisation• Declining relevance to

advertiser

Dedicated Sales: Sales resources are directly allocated to single titles.

Title 6(mono-media)

Title 11(mono-media)

Title 4(mono-media)

Title 10(mono-media)

Title 8(mono-media)

Title 7(mono-media)

Title 2(mono-media)

Title 1(mono-media)

Title 3(mono-media)

Title 9(mono-media)

Publicitas as an outsourced sales force for print publishers

Pursued business model A portfolio sales approach allows Publicitas to benefit from economies of scale and maximise the advertisers’ share of wallet

• Scalability• Higher sales effectiveness• Maximisation of advertisers’

share of wallet

Portfolio Sales: Sales resources sell media portfolios that address a large part of advertisers’ need.

Publicitas as a match-maker for multiple media portfolios' Media portfolio

(multiple media)

Mid-term product and geographic mixGrowth in digital and international markets does not compensate for a strong decline in the Swiss print business

2015e

~125

60-70%

30-40%

2012e

~145

~87%

~13%

Media Sales Total Net revenue in CHF mn

PrintNon-print

2012e

~145

~77%

~23%

2015e

~125

60-65%

35-40%

SwitzerlandInternational

By media By geography

International Publicitas Network Accelerate restructuring, strengthen business and leverage industry expertise in more than 20 countries

Mumbai

New Delhi

Bangkok,

SingaporeKuala Lumpur

Hong-Kong

Shanghai

Beijing

Miami

Vancouver

New York

Toronto

Montreal

Honolulu

Madrid

London

Paris Frankfurt

AmsterdamBrussels

Basel/Zurich/GenevaMilan

ViennaMunich

Los Angeles

Dubai

Journey to future business modelMeasures initiated as strategic initiatives 2013

Acceleratethe digital agenda& explore new opportunities:

Higher share of digital turnover and adjacent media sales business

Exploit print business:

Leaner and more flexible cost structure

1st PILLAR

2nd PILLARGrow Digital• Accelerate digital and mobile product offering to address

multiple advertising segments

Grow new business• Accelerate development of comprehensive media portfolio

Swiss business & Central cost• Finalise sales efficiency• Reduce IT landscape complexity massively and implement

scalable system based on standard software• Continue right-sizing to anticipate print market decline

International• Accelerate restructuring and leverage industry expertise

Transparent service levels and operating autonomy• Redefine publisher relationships

Inter-national

CH National

Publicitas’ digital and adjacent product portfolioAdvertising products are sold in Switzerland and overseas in more than 20 countries

CH Local & Regional Ad4Max Geo

Product

Ad4Max

AdMarket

Instanz Lead Generation

The Mark(Premium SSP)

Premium Websites

Advertisers

SME

Performance-oriented advertisers

Media agencies, national clients

National clients

Media agencies, trading desks, major clients

Media agencies, key clients

Publishers

Google, FacebookLeading online premium publishers

Cost effective cross-border inventory sources

Leading Swiss print and online media owners

Swiss online media owners

Leading Swiss and international online premium media owners

International online premium media owners (worldwide)

41

Dive-in: Publicitas Digital - advertiser oriented servicesLocal and regional products

• A media package built on top-tier digital

platforms

• Turnkey media management service, with

real-time reporting for time-pressed SME

advertisers

• Geo-local advertising footprint

• Leveraging our long-lasting relationships

with SME clients

• Sold by Publicitas local/regional sales force

and dedicated P-Digital Sales unit

42

Dive-in: Publicitas Digital - advertiser oriented servicesLead generation by Instanz

• Tailor made scalable lead generation

solutions for B2C businesses

• Full service agency covering the complete

lead generation funnel

• Long-lasting client relationships

• Insurance price comparison engine for

media platforms

• Innovative IT lead generation solutions

(Augmented reality, mobile)

43

Dive-in: Publicitas Digital - advertiser oriented servicesNational products for agencies and clients

• “Open Media Services” - neutral market

positioning

• Delivering digital media services and

consulting to media agencies and key

accounts

• Tools for the planning, calculation,

booking, processing, controlling and

reporting of campaigns for Swiss media

agencies

• Uniquely comprehensive data resource

covering the Swiss media landscape

• Helps to drive much-needed efficiencies

for agencies44

Dive-in: Publicitas Digital - publisher oriented services National and international products for media owners

• A digital marketplace, where premium

media owners enable their inventory to

be sold to real-time / automated

buyers

• Leveraging Publicitas existing

relationships as a trusted media sales

partner for premium publishers

• Leveraging the Publicitas international

network of sales offices in 21 countries

• Underpinned by Improve Digital’s

leading-edge technology

45

46

Capitalizingon new online and mobile offerings

PART SEARCH & FIND

Edi BählerCEO local.ch

Search & Find

Further driving digital growth capitalisingon new online and mobile offerings

Edi Bähler4 December 2012

Online content(website, video…)

Events, exhibition

shows

Vertical portals

Local media (press,

radio, outdoor)Classified

Leadgeneration

(quotations…)

Booking

Offline content(flyers, posters)

Communication and offline medias

Online Directories

Pay-per-performance models

CRM(Direct marketing)

SEMGroupon-like

models

SMEs Advertising needs(marketing & communication)

Print Directories

Traditional "Search & Find" and online marketing

Emerging models Strong growth Measurable ROI

Classical media. Poor growth. Not performance-based

User generated content Editorial content User knowledge

SMEs evolving marketing and communication needs facing increasing complexity

48

Market dynamics – there are markets with distinct growth potential

Others

Local.ch

Google

search.ch

gate24.ch

Renovero, …

Homegate,Immoscout24,home…

swissfriends.ch,..

Jobscout24.ch,jobs.ch,…

Website creation & content

Directories

Online content

Lead Generation

Mar

ket M

atur

ity

Classifieds

Printed Directories

OnlineSearch &

Find

-5% to -15%

+10% to +20%

DeinDeal, Groupon, ..

+25% …+15%

Booking

Couponing

Autoscout24.ch,…

+10% to +20%

49

Sales Channels

MatchmakingTraffic

Matchmaking dynamics – maximise value for customers & users, monetise on services

Population

cust

omer

sus

ers

entry products advertising

products

customer loyalty

user loyalty

Inbound T.

Outbound T.

Key Account

Special Sales

Direct

Organic

AdWords

Partner

SME

Self Service

App-Usage

transactions

Audience

Others

App-Dwnld

Fieldsales

Matchmaking / Conversion ➜ Value

50

Key drivers for successful matchmaking

User insights

Deeper advertiser information

Harmonised employer conditions

Strategic personnel resource management

IT

Processes

Print cost structure

Managed audience(Print, Online, Mobile)- User experience design- Search engine optimisation- Local editorial content- User generated content

Brand strength

Leader in audience

Products(Print, Online, Mobile)- Optimise- New- Mobile - Lead generation

Sales power & efficiency: – Incentive– Role Model– CRM– Multichannel

Strong monetization engine

Operational excellence People and cultureMatch-making data

51

289

411

0 100 200 300 400 500

No.2

local.ch

[k]

Unique clients2 iOS (October 2012)

Uncontested #1 on mobile with > 2m downloads

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct[m

m]

Total downloads on all platforms1

2 m downloads

2011 2012

1 Source: Official platform Stores (iOS,Android,Blackberry,W7,Nokia)2 Source: Netmetrix Mobile iOS (http://netreport.net-metrix.ch/mobile/)

2mm downloads1

of local app on all mobile platforms

42% ahead on No. 2with apps in use for iOS in October 2012

Achieved exclusively with matchmaking traffic

+42% ahead

52

#1 internet page of Switzerland in terms of unique visitors

2.5

2.7

2.9

3.1

3.3

3.5

3.7

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

[mm

]

Unique clients1

local.ch No.22011 2012

1 Source: Netmetrix

Biggest internet pages of Switzerland1 in October 2012

Unique clientslocal.ch 3,616.000search.ch 3,497.00020Min.ch/dt 3,110.000Blick Online 3,092.000Bluewin.ch 3,057.000Sbb.ch 3,035.000Microsoft Ad 2,852.000sf.tv 2,525.000Tagesanzeiger.ch 1,675.000NZZ Online 1,539.000

site migration

SEO

53

Online content

CouponingSelective Banner

Successful launch of a web product with big potential

Launch of a second successful mobile product with big potential

New (2012) mobile & online products account for a substantial portion of total order intake YTD

Mobile First

Mobile Business

Alert

Presence Web PlusBroad & Mobile

54

Offer evolution towards changing userhabits and needs – buyers guide

Local Guide

Still more than 70% of household usage of print

Increase attractivitywith local editorial content

Cross-media offers under one brand

Environmental sustainability

Editorial Content

55

Booking

New restaurant special guide & booking feature launched 10/2012

October 2012 (first month live)• ca. 1.5 [k] total reservations• 20 bookable restaurants

local.ch "RestoGuide"• Finding restaurants• Find and select restaurants• Book restaurants

Localina Products• Online reservations• Reservation management• Customer CRM• Settings & analytics

56

2008 2009 2010 2011 2012 2013

Order intake

E‐Media order intake C‐Media order intake SUM order intake

Online order intake compensates decline of print order intake

57

Conclusions

UPDATE PUBLIGROUPE

Review: Online revenue keeps on growing with double digit and online order intake

outperforms print decline Biggest Internet page in Switzerland in terms of unique visitors Uncontested #1 in mobile matchmaking Print offer evolution towards changing user habits and needs New (2012) mobile & online products account for a substantial portion of total

oder intake YTD New restaurant special guide & booking feature launched 10/2012

Outlook: Driving further digital and mobile growth Capitalise on leading position and strong heritage Develop new revenue models on the basis of continued above-average profitability

58

59

Capitalising on Zanoxleadership & trendsin RTA

PART DIGITAL & MARKETING SERVICES

Renato MartignoniCOO DMS

Market trendsFour key trends that guide DMS’ strategic priorities

Source: DMS Analysis

1

2

3

4

Continuing shift to onlineOnline advertising continues to grow at double digit rates, despite low overall growth

Shift to mobileA key driver of online growth is increasing usage and anticipated spend on mobile devices

Shift to real-time advertisingNew, efficient and ‘intelligent ’ RTA-based business models will gain in importance

Data-driven consolidationIntermediaries in the advertising ecosystem will consolidate to maximize access to intelligence

60

Market trends – shift to onlineOnline, with display in particular, continues to grow above market rates

Source: PwC, October 2012, DMS analysisNote: 1) In 2011 Euros, converted from US$; 2) Display includes video, and all online categories include 1/3 of mobile

Ad Spend, EMEA, 2009-2016FEUR€ bn1, % share per medium

5% 5% 5% 5% 5% 5% 4% 4%

22% 21% 20% 19% 18% 17% 16% 16%

12% 11% 11% 10% 10% 10% 9% 9%

6% 7% 8% 9% 9% 10%4% 4% 5% 5% 5% 5% 6% 6%

5%5%

12%

2013F

113

30%

12%

2014F

12%

29%

2015F

12%

125

13%

119

14%

29%

107

30%

12%

13%

2012E

TV

Print Magazines

Online Search 2

Online Display 2

Online Classifieds 2

Other

2016F

Radio

100%

Print Newspapers

103

30%

11%

13%

2011

100

30%

10%

14%

2010

98

31%

9%

14%

2009

93

29%

8%

15%

CAGR 2009-12E

CAGR 2012E-16F

+11%

+18%

+15%

-1%

-2%

+2%

+4%

+10%

+16%

+12%

+2%

0%

+2%

+4%

+4% +5%

61

Market trends – shift to mobileThe gap between mobile ad spend and mobile time spent is expanding

Source: eMarketer, October 2012, DMS analysis

2%3%

12%13%

25%

40%

9%12%

2%

9%

21%

39%

PrintNewspapers

MobileRadioOnline PrintMagazines

TV

Ad SpendTime Spent

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

2009 2010 2011 2012

∆=7pp

∆=10pp

MobileAd Spend

MobileTime Spent

∆=5pp

Ad Spend vs. Time Spent, USA, 2012% share per medium

Mobile Ad Spend vs. Time Spent, USA, 2009-12% share (percentage point (pp) difference)

Anticipated Ad Spend Trend

62

Market trends – shift to real-time advertisingRTB is expected to double its share of online display transactions

Source: IDG, 2011, DMS analysis

RTB vs. Non-RTB Display Ad Spend, Germany, 2011-15FUS$ bn, % share per type

96% 92% 87% 83% 80%

8% 13%20%17%

1.91.81.7

2012E 2013F

100%2.5

2011 2014F

RTB Ad Spend +68%

Non-RTB DisplayAd Spend +6%

2.2

2015F

4%

CAGR 2011-15F

+11%

63

Market trends – market consolidationThe RTB-driven ecosystem is consolidating to maximise access to data

Source: DMS analysis

Horizontal Consolidation

Trading DesksAgencies DSP Tech ExchangesSSP Tech

Sales Houses Publishers

Ad Networks • The ‘classic’ advertising

ecosystem is highly fragmented with insulatedunique data assets

• Data is key for effective targeting and RTB-bidding strategies

• Through consolidation, more consistent data can be used to define and execute a bidding strategy

• This will result in a higher value per (targeted) inventory asset, and a higher RoI for advertisers

64

DMS strategyFocusing on adding sustainable value to our key clients and consumers

Source: DMS analysisNote: *) Mediamath is an independent partner of PubliGroupe

Usability Intelligence Trust

“Offer the best user experience throughoutthe booking process”

“Offer the most intelligent data-driven pricing and

placement strategy”

“Offer the highest standards in privacy, data and transaction security”

KEY VALUESKEY VALUES

Agency /Advertiser

RTB TradeDesk

RTB Trade Technology PublisherRTB Trade

DeskRTB Trade Technology

External Data, Data Management, Data AnalyticsInternal DataInternal DataInternal Data Internal DataWeb

MobileVideo

…

*

65

DMS performance overviewFinancial Recap 2009-12 in CHF m

* Reported view: in 2012, Namics is included January - May. Full year included in 2009-2011.Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange rate (2012).

Portfolio

• Zanox not fully reflected in DMS P&L due to accounting restrictions

• RTB-DSP provider Spree7 launched in Berlin in cooperation with MediaMath

• Acquisition of Improve Digital (85% stake) is awaiting regulatory approval

• Namics business sold to the partners -2012 results not fully comparable

Rev

enue

*O

pera

ting

Res

ult*

49.4 50.6 52.1 0

100

200

300

2009 2010 2011 2012

9.7

2.3

7.4

0

6

12

18

2009 2010 2011 2012

Reported proforma

(from 2013, pending approval)

66

DMS performance contributors (proforma)Zanox (47.5%) is to DMS performance

* Proforma view: includes share of Zanox (47.5%); excludes Namics; calculated at constant exchange rate (2012).

• Zanox is our largest investment with a significant EBIT contribution

• SVBmedia is a profitable media agency in the Netherlands

• Spree7, Berlin, launched in May 2012 is a RTA trade desk, FTE 8

• All units invest in future digital developments

Rev

enue

*O

pera

ting

Res

ult*

185 193

Q1-3 2011 Q1-3 2012

SVBmedia

HQ

Spree7

Zanox

96

Q1-3 2011 Q1-3 2012

Spree7

SVBmedia

HQ

Zanox

67

ZanoxThe European leading performance advertising network

European Leadership

Engaging > 4'000 advertisers Connecting relevant publishers

#1 position in market

# 2

Performance = Sales

Revenues (€M)

227260

210

312

191

327

-9%-8%

+5%+20%

Tradedoublerzanox group9M/2010 9M/2011 9M/2012

EBITDA (€M)1)

8

14

11

18

1

16+35% -87%

-14%+32%

Tradedoublerzanox group

Note: Tradedoubler exchange rate SEK/EUR 0,111) Tradedoubler EBITDA 2010 not including amortization of loans of €26,6MSource: Tradedoubler Interim Reports Jan-Sep 2011 & 2012

9M/2010 9M/2011 9M/2012 9M/2010 9M/2011 9M/2012 9M/2010 9M/2011 9M/2012

ZanoxOutgrowing our closest competitor

69

• Online advertising markets in Europe still growing – driven by budgets shifting from offline to online and rapidly growing online retail sales

• Online advertising continues to move more and more towards performance-based models – as advertisers increase their focus on ROI

• Synergies from zanox network gaining in importance – for serving large international advertisers and from a cost perspective

Opportunities

• Difficult macro-economic environment – with reduced consumer spending in some key industries and markets (esp. Southern Europe)

• Pricing pressure growing – as especially large advertisers demand volume discounts and insource

• Performance-based alternatives to affiliate marketing gaining ground – e.g. re-targeting, real time bidding

Challenges

Source: zanox analysis

ZanoxOpportunities and challenges

70

Networkgrowth

1

Productinnovation

2

International expansion

3

Source: zanox analysis

• Further acquiring and growing advertisers andpublishers network – locally and globally

• Leveraging 3rd party cooperations

• Core affiliate platform evolution• Mobile innovation• New performance-based models

• Profitably growing our new countries (Brazil, Eastern Europe, Turkey)

• Evaluating further expansion moves (organic and M&A)

ZanoxZanox has a sound strategy in place

71

Spree 7DSP start-up in partnership with leading tech provider Mediamath

• Oliver Busch (Managing Director)

• Alexander Thurner (Director Sales DACH)

• PubliGroupe participates with 80% in Spree7, Mediamath holds the remaining 20%

• Mediamath is a leading global DSP technology provider, headquartered in the United States, that gained the #1 position in recent Forrester research

• Spree 7 is a managed service provider to agencies and advertisers in the DACH region, with preferred access to Mediamath technology

• PubliGroupe intends to develop a leadership position in DACH DSP markets, combining best-in-class service provision with leading technology

• Start-up, founded mid 2012 with headquarters in Berlin

• Grown to 8 employees since foundation

• Exclusive relationship with Mediamath in DACH region

• 2012 focus was on business incubation; 2013 focus will be on gaining market traction and growth

• German RTA market is expected to grow at a rate of 68% in coming years

Company factsPowered by:

72

Improve DigitalLeading European SSP player

Rising Star 2011 Award

• Joelle Frijters (CEO)• Janneke Niessen (CIO)

• PubliGroupe acquires 85% of Improve Digital

• Acquisition is subject to approval by the Swiss Comco

• Part of PubliGroupe investment to fuel growth of company and accelerate its geographical expansion

• Publicitas will use Improve Digital technology for its high premium market place

• Founded in 2008 with headquarters in Amsterdam and offices in London, Madrid, Munich and Paris; 60 employees

• Proprietary technology, RTA enabled - the '360 Yield Platform'

• Over 70 premium European publishers

• Billings in 2012 expected to reach CHF 20 m, more than double compared to last year

• Close to 100 bn ad impressions running through the platform

Company facts

73

ConclusionThree key points to win

Capitalise on Zanox leadership in Europe Leverage innovation and efficiency investment through clients and publishers European network

Embrace and focus on key trends - RTA, Mobile, DataDrive profitable growth

Execute consistently on key initiatives - Improve Digital, Spree7Hire and retain key people to achieve consistent and timely execution

74

1

2

3

75

Solid financial situation; share buy-back programme

PART FINANCE

Andreas SchmidtCFO

76

Agenda

Divestment results

Financial situation: cash, returns & investment capacity

Share buy-back programme

Non-operating assets

1

2

3

4

Conclusion5

77

Divestment resultsContinuation of strategic asset management in 2012

1

Divestment of non-core assets

2010 2011

37% BAZ Medien / 19.9% EdipresseReal estate Baden / Lausanne

Emphasis Video (EVE)Huashang InteractiveCity MediaReal Estate St. Gallen

2012

NamicsSüdostschweiz Publicitas AGReal Estate Bern & Lausanne

• Disposal of 91% interest in Namics AG (including German and US subsidiary)

• Disposal of 50% interest in Südostschweiz Publicitas AG (SOP)

• Disposal of four real estate properties in August 2012 for a total of CHF 85 m, resulting in after tax gain of CHF 39 m.In total approx. CHF 52 m net book gain in 2012 accounts

28.415.5 13.4

39.0

0

10

20

30

40

50

60

Net book gain from divestments, in millions of CHF

2010 2011 2012 estimate

52.4

78

Divestment resultsFour real estate assets were sold in August 2012

1

• Three buildings in Lausanne (Toises 12, Mon Repos 22 and Mousquines 4) and one in Bern (Seilerstrasse 8) were sold in August 2012

• Disposal of four real estate properties will produce an after-tax book profit in amount of CHF 39 m.

• An important part of the proceeds will be returned to the shareholders of PubliGroupe, as announced in early 2012

Bern Lausanne (Mon-Repos)

Lausanne (Mousquines)

Lausanne (Toises)

79

Financial situation:Strong cash position despite unsatisfactory operational cash flow

2

Note: *) Contains dividends paid to shareholders of PubliGroupe and dividends paid to minority interests by Group companies

*

80

Financial situation:Sufficient investment capacity to finance future growth

2

in millions of CHF1st half year

2012

Available cash 95.6

Free bank facilities 35.0

Operating cash need -30.0

Financial headroom 100.6

(+) Net proceeds from real estate sale

(-) Planned refund to shareholders (early 2013)

(-) Bank debt repayment

(+/-) Expected operational cash flow for the 2nd half year of zero

Expected financial headroom for 2013 remains in the range of CHF 100 m after all transactions

Outlook 2012 / 2013

81

Planned return of proceeds:

• As announced previously, PubliGroupe intends to return a big part of the proceeds generated by the sale of the real estate assets to its shareholders

• The ambition of the board is to pay back a total of CHF 45 m

• A share buy-back programme of CHF 25 m via a second trading line on the SIX Swiss Exchange, approved by the Board of Directors will be launched early 2013

• It is planned that the Board of Directors will propose to the 2013 Annual General Meeting:

− Extension of the buyback programme or a new programme, depending onthe volume that has been repurchased by then.

− A proposal to pay a special dividend for the balance.

Share buy-back programmeAmbition to return CHF 45 m to shareholders

3

82

Key characteristics of the share buy-back programme:

• Trading period from 3 January 2013 to 30 April 2013

• The share buy-back will be processed via a second trading line on the SIX

• The repurchase price on the second line will be driven by the share price on the first line

• Based on a current share price, approx. 9% of the total shares outstanding could be repurchased by PubliGroupe

Share buy-back programmeTiming and conditions

3

83

Non-operating assets: real estateZurich Neumühlequai remains an important asset in our portfolio

4

Zurich | 1982 | 4'695m2

Paris | 1970 | 365m2 Delémont | 1992 | 1'045m2

Note: Location | Year of construction | Surface area

• After the divestment of 4 buildings in Lausanne and Bern, PubliGroupe holds 3 real estate assets

• The most important of these assets is the office building at Neumühlequaiin Zurich. The building is rented to a third party with a long term contract

• The Board of Directors has decided not to sell this asset for the moment

84

Non-operating assets: press participationsAssets in participations and securities in amount of CHF 68 mio.

4

Mar

keta

ble

&

non-

curr

ent

secu

ritie

s

FPH (Freie Presse Holding)• Subsidiary of the Swiss publishing house

Neue Zürcher Zeitung, combining all major press participations of the group

SNP (Société Neuchâteloise de Presse)• Part of the Hersant Group and one of the

prominent newspaper publishers in French speaking Switzerland

Südostschweiz Presse und Print AG • Subsidiary of the Südostschweiz Medien

Group

Pres

s Pa

rtic

ipat

ions

2.4

4.1

42.8

Book values (June 2012), in millions of CHF

Tamedia

Other (several positions)

Expe

cted

ca

sh fl

ows

2012

7.1

11.5

Dividends from press participations: CHF 2.6 mio. (operational cash-flow) Dividends from marketable & non-current securities: CHF 1.0 mio. (financial result, operational

cash flow)

% owned

29%

25%

20%

Note: *) Decrease in book value compared to 2011 is a result of the change to Swiss Gap FER (goodwill being offset through equity)

*

85

PubliGroupe has divested some CHF 100 m non-operating respectively non-strategic assets in 2012

For 2012 PubliGroupe expects an operating cash-flow close to zero

PubliGroupe BoD has the ambition to return CHF 45 m to shareholders. As a first step, a share buyback programme will start on 3 January 2013

PubliGroupe enjoys a solid financial situation and will have sufficient funds for financing future growth after the announced returns to shareholders

There are still important non-operating assets on the balance sheet of PubliGroupe which could be sold in the future

ConclusionSolid financial situation and return CHF 45 m to shareholders

5

86

Overall conclusionby the CEO

PART GROUP

Arndt C. GrothCEO PubliGroupe

87

Market conditions are in constant change --- print will continue to decline, digital and now especially mobile will continue to gain in importance.

PubliGroupe with broad range of assets that need to be refocused tostrengthen regional, national and international network.

Media business will continue to be primary DNA, but automation of processes necessary, focusing on connecting supply and demand.

For 2012 small operating loss and net profit of over CHF 41 m; for 2013 strong improvement at Publicitas expected against 2012 result that should allow break-even operating result and contributions at roughly the same level, or slightly higher in the case of Search & Find, for the other segments.

Ambition to return CHF 45 m to shareholders. As a first step, a share buy-back programme that will start on 3 January 2013.

Solid financial situation and sufficient funds for financing future - also after share buy-back programme. Still important non-operating assets on the balance sheet of PubliGroupe.

ConclusionPreparing the Group for the digital marketing world

88

Maximising full potential of inventory

DEMO IMPROVE DIGITAL

Improve Digital - Real Time Advertising Technology | 2012 © 89Improve Digital - Real Time Advertising Technology | 2012 ©

IMPROVE DIGITALReal Time Advertising

TechnologyLausanne, December 4th 2012

Joëlle FrijtersCEO, Co-Founder

Janneke NiessenCIO, Co-Founder

Improve Digital - Real Time Advertising Technology | 2012 © 90

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2011 2016

52,8%USA

54,5%UK

52,8%FRANCE

62,0%GERMANY

89,6%JAPAN

N/ACHINA

Global RTA CAGR per market (Source: IDC)


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volume

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Types of buyersAgenciesDemand Side PlatformsAgency Trading DesksAdvertisers

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DEMO


Joëlle FrijtersCEO Improve Digital+31612961046

joelle_improvejoelle frijters

THANKYOU!

publigroupe investors' day 4 december 2012

Investor Relations