ENIRO Q1 REPORT · Q1 Q2 Q3 Q4 2011 2012. PRINT SHARE OF TOTAL REVENUES REVENUES, SEK M • Total...

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

2

� 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)

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� 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

+7%

-9%-11%

300

400

500

600

-1%

-7%

300

400

500

600

4

-9%

+15%-20%

-11%

0

100

200

Q1 2011 Q1 2012

+42%-9%

-10%

0

100

200

Sweden Norway Denmark Finland Poland

Q1 2011 Q1 2012

ORGANIC DEVELOPMENT

-5%

0%

5%

10%

15%

5

-25%

-20%

-15%

-10%

Total

Online

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

600

6

Q1 2012 Q1 2011

Revenues, SEK M 513 479

Organic development % 2 -2

Share of Eniro % 53 50

53%

0

200

400

600

Q1 Q2 Q3 Q4

2011 2012

PRINT

SHARE OF TOTAL

REVENUES

REVENUES, SEK M

• Total revenues decreased -9 percent

• Organic development -30 percent

• Evaluation of future strategy regarding De Gule Sider print books

18% 500

Q1 2012 Q1 2011


Organic development % -30 -37


7

18%

0

100

200

300

400

500

Q1 Q2 Q3 Q4

2011 2012

MEDIA PRODUCTS

SHARE OF TOTAL

REVENUES

REVENUES SEK M

• 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

Q1 2012 Q1 2011


Organic development % 14 23


8

REVENUES

6%

0

20

40

60

80

Q1 Q2 Q3 Q4

2011 2012

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

Q1 2012 Q1 2011


Organic development % -11 -9

EBITDA, SEK M 57 53


9

SHARE OF TOTAL

REVENUES

REVENEUS, SEK M

19%

0

100

200

300

Q1 Q2 Q3 Q4

2011 2012

ACTIVITIES IN THE PERIOD

� 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

Corporate

10

� Eniro Deals will be hosted through third-party co-operation

� Divesture of Eniro Buy & Sell service

� Completion and implementation of Eniro brand project

� Launch of Eniro for iPad

� Print re-scooping

� Strengthened position within the strong growing mobile segment

� Build-up of sales force within Mediaproducts

Product

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

� Consolidation of Danish operation

THE TURNAROUND PLAN

� Organic revenue decline

2010 2011 2012

� Organic revenue decline � Returning to total revenue � Organic revenue decline

less than 15%

� Total cost base reduction

of approx SEK 350 M vs.

total costs 20091

� Actuals in line with

guidance

� Organic revenue decline

close to 10 percent

� Total cost base reduction of

approx SEK 350 M vs. total

costs 20101

� Actual top-line in line with

guidance

� Cost reductions ahead of

guidance, 458 MSEK

� Returning to total revenue

growth

� EBITDA 2012 inline with

outcome 2011

� Total cost base reduction of

approx SEK 200 M vs. total

costs 20112

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%

7

51

9

1,015 8

71

70

23936

23

966959

13

� 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

Reported

revenues

Q1 2012

Divested

business

Reported

revenues

2011

Currency

effects

Moved

publications

Organic

baseline

2011

Online/

mobilePrint Media Other Voice Revenues

ex. acq.

Acq.

-30+2 +14 -1 -11

COST SAVINGS

836

828

8312

16

761

777

803

26

-59

-6759

845

14

� 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

Organic

baseline

2012

Currency

effect

DivestedOperating

costs 2011

Adj

Operating

cost 2012

YTD

Net

Savings

Q1

Acquired Operating

cost 2012

YTD

Including dgs

Cost

3’rd party cost

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

15

Revenues by country

2012 2011 2011/12 2011


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

EBITDA overview

EBITDA by revenue area

2012 2011 2011/12 2011


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

16

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

PREPAID REVENUES; BALANCE SHEET

1 275

1 2331 190

1 145

1 089

1 049

1 083 1 1171 073

948

1 031

1 042

1 000

1 200

1 400

17

� Prepaid revenues in line with Q4

948

600

800

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

18

� Operating cash flow in Q1 increased by 91 MSEK

� Net debt/EBITDA 3.3 (6.8) Q4 3.4

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

FOCUS IN ENIRO

Market positionWith 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

• Content program

Focus areas Meaning Main initiatives2012

19

Quality

Profitable growth

Stability, relevance and simplicity

in all that we do

Eniro grows with focus on both

revenues and costs

• Content program

• Quality in focus

• Web analytics

• Improved customer experience

• Culture program

• Priority of existing customers

• Sales channel optimization

• Cost optimization

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

10

1512,1

6,27,8

108,4

20

Source: IRM-15

-10

-5

0

5

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

E

20

12

E

-5,8-3,8

0,3

6,2 5,6

1,5

-12,5

4,8

-0,1 (-0,4ppt)

OUTLOOK FOR 2012

Revenues

Total revenue growth in 2012

EBITDA

EBITDA for 2012 in line with 2011

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

Cost reductions

Net cost reductions1 of SEK 200 M in 2012

Dividend and capital structure

Priority will be given to the reduction of net debt

APPENDIX

sessio

ns

YELLOW USAGE – eniro.seWeekly sessions, monthly average

1000000

1200000

1400000

1600000

1 306 039

User

sessio

ns

23

0

200000

400000

600000

800000

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

2012 2011 2010

sessio

ns

YELLOW USAGE – gulesider.noWeekly sessions, monthly average

800 000

1 000 000

1 200 000

927 382

User

sessio

ns

24

0

200 000

400 000

600 000


2012 2011 2010

YELLOW USAGE – Krak DenmarkWeekly sessions, monthly average

sessio

ns

500 000

600 000

700 000

800 000 738 966

25

User

sessio

ns

0

100 000

200 000

300 000

400 000

500 000


2012 2011 2010

ENIRO Q1 REPORT · Q1 Q2 Q3 Q4 2011 2012. PRINT SHARE OF TOTAL REVENUES REVENUES, SEK M • Total...

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