PagesJaunes Groupe Online directories. 18 May 2006 Presentation to investors

Transcription

1 PagesJaunes Groupe Online directories 18 May 2006 Presentation to investors

2 Notice This document contains forward-looking 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 forward-looking statements include, among other things: 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. Risk factors of the Document de Référence of PagesJaunes S.A. filed with the French financial markets authority (AMF) under the number R on March 23, A description of the objectives of the PagesJaunes Group appears in section 13. Profit estimates or forecasts of the Document de Référence. The forward-looking 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 a like-for-like consolidated basis (including PagesJaunes S.A., Kompass France, QDQ Media, Mappy S.A., Wanadoo Data, Eurodirectory S.A., Editus Luxembourg, Kompass Belgium, e-sama and Edicom). Online Directories - 18 May

3 PagesJaunes Groupe: a strong Internet exposure across its businesses Subsidiary Internet proportion (as a % of 2005 revenues) 2005 revenues Main businesses Main countries Mappy 100% 8m Geographic services France PagesJaunes 31% 956m BtoC Directories France QDQ Media 13% 41m BtoC Directories Spain Editus (100%) 15% 17m BtoC Directories Luxembourg Kompass 63% 29m BtoB Directories France, Spain Belgium, Lux. PagesJaunes Groupe: 330m of online revenues (31% of 2005 consolidated revenues) Online Directories - 18 May

4 Internet as a percentage of PagesJaunes in France revenues in 2005 Breakdown of PagesJaunes in France revenues in 2005 Breakdown of revenue growth 2004/2005 (1) 30% 70% Online services Other 58% 42% 956.1m m (1) On constant consolidation basis (see glossary) Online Directories - 18 May

5 Internet & Minitel revenue trends Online revenues of PagesJaunes in France (in millions) CAGR % % Migration % Minitel (PagesJaunes 3611) Internet (pagesjaunes.fr) Online Directories - 18 May

6 Internet offers a growth in volume and value ARPA (in euros) # of advertisers (in thousands) 24% % % % % % % % % % k Pagesjaunes.fr Printed Dir. Pagesjaunes.fr as a % of printed directories Online Directories - 18 May

7 Internet as a complement to printed directories Advertiser mix in 2005 (1) (in thousands) (28%) (65%) 43.4 (7%) Printed Online (1) Total number of advertisers: (1) Advertisers on pagesjaunes.fr (Internet) and/or on PagesJaunes 3611 (Minitel) Online Directories - 18 May

8 Pagesjaunes.fr: Solid fundamentals In the top 10 of the ranking since 2003 (2) Pagesjaunes.fr Internet market (1) Change Change N 5 in March 2006 (2) : 8 million unique visitors 38.9% reach rate For 3 years, the French website most widely consulted by executives (3) : 36.5% reach Total number of visits (in millions) (1) 41% 23% Total number of unique visitors per month (in millions) (2) Number of visits / visitors / month % 8% 9% Pagesjaunes.fr, one of the Internet audience leaders in France, all sectors combined (1) Source: Médiamétrie estat January to December (2) Source: Home & Work Panel Médiamétrie//NetRatings January to December (3) Source: France des Cadres actifs survey 2005/IPSOS Média Online Directories - 18 May

9 Main reasons for the strong position of pagesjaunes.fr in France Audience Investment in advertising by PagesJaunes Sustained growth of broadband in France Innovation policy Previous existence of Minitel (PagesJaunes 3611) Monetisation Strong sales force with 1,830 sales reps end of 2005 Full array of advertising products on Internet (impact and display products) from 200 to several thousands euros No bundle with printed dir. Origin of visits on pagesjaunes.fr (%) 85% 15% Direct Others (1) (1) Links with portals, sponsored links, etc Online Directories - 18 May

10 Internet advertising and website market in France Breakdown of the French Internet advertising and websites market in 2005 (1) 27% PagesJaunes Revenues 227m 340,000 advertisers ARPA 631 E-pub (1) Estimated rev. 300m c. 900 advertisers ARPA 330,000 40% 12% 21% Websites (1) Estimated rev. 200m c. 260,000 clients ARPA 800 (1) PagesJaunes estimates Sponsored links (1) Estimated rev. 100m c. 10,000 clients ARPA 10,000 Presentation Online to Directories investors March May

11 Growing audience fuelled by constant innovation Number of visits (1) per year on pagesjaunes.fr (in millions) Enriched content 538 Contact Local search Traffic information Weather forecasts Aerial photos Booking services Town maps City photos 172 Private space Local area search Click to talk (1) Source: Médiamétie-eStat, 2005 Online Directories - 18 May

12 Editorial policy Being and remaining the preferred local search service for people in France by: Developing functionalities Enriching content Developing relations and transactions through innovations that use technology as a marketing tool and not as an end in itself through partnerships with leading companies in their domain and with Mappy, our subsidiary, for map services and through new initiatives to extend our scope of activities Online Directories - 18 May

13 Audience of pagesjaunes.fr editorial contents in 2005 Audience of enriched contents of pagesjaunes.fr (1) in 2005 (in millions of pages viewed) Route planning Other (weather forecasts, traffic info., webcams, etc) 10% 6% Town plans in metropolitan France City photos 23% 61% Total enriched editorial content audience: 690 million pages viewed (17% of total) (1) Source: Médiamétie-eStat, 2005 Online Directories - 18 May

14 Innovation policy: aerial photos Launched in July 2005 in 37 cities IGN agreement in February 2006 providing high-definition aerial photo service covering the whole of France Cross-fade between maps and aerial photos Local area search on aerial photos and maps Online Directories - 18 May

15 Innovation policy: 3D representation Currently being trialled Online Directories - 18 May

16 Innovation policy: Ville en Direct Launched in February 2005 with local weather, maps, photos, webcams, traffic Up to 350 webcams expected online in December 2006 through a partnership with Autoroute Trafic Planned expansion to include other content: tourist information, shows, events, etc. Online Directories - 18 May

17 Innovation policy: Promoting contact Click to talk service Launched in November 2005 Initially on websites with the "En Savoir + feature Gradually extended to all of pagesjaunes.fr 340,000+ advertisers Online Directories - 18 May

18 Innovation policy: New website offering Economic optimisation: Standardised offering Profitability rising fast Production outsourced to PagesJaunes Marketing Services Information on websites to be searchable Strong sales trend: 37,500 websites as at 31 December 2005 Online Directories - 18 May

19 Innovation policy: Yellow Search (YeS) project Major development for PagesJaunes and strategic challenge in Internet search environment: Making the user interface more intuitive Using the wealth of content on pagesjaunes.fr or accessible via pagesjaunes.fr to improve the search results Accelerating growth Currently testing the Directory and IYP Solution based on the FAST technology Delivery at the end of 2006 (Beta version) Online Directories - 18 May

20 QDQ Media Internet initiatives Local area information (launch December 2005) Integration of searching and Mappy map services Innovative products launched in September 2005 Info +: essential info, clearly arranged, on a website designed for businesses Video: personalised clip, multimedia advertising accessible to everyone Integration: photos, maps, satellite images, advertising information Comprehensive, practical information for the user Greater visibility and effectiveness for the advertiser Breakdown of 2005 QDQ Media revenue (1) Breakdown of revenue growth 2005/ % 85% Internet services Other 54% 46% Online Directories - 18 May

21 Services adapted to habits of Spanish Internet users Launch of a full-text search service Based on concept of proven effectiveness Complementary to traditional" directory searching Spanish Internet users are accustomed to engine" type searching in a field Objectives: expand search facilities, increase relevance of results, expand searching to a multilingual environment and enhance value of information content Online Directories - 18 May

22 Conclusion: take advantage of a growing market Take advantage of our growth to invest in new innovative services: Yellow Search project Enriched editorial content Promotion of contact Continue the economic optimisation of online activities: While maintaining our business model Improving our internal processes Controlling the cost of developments Be the leading online directory publisher in Europe Online Directories - 18 May

23 Appendices 23

24 PagesJaunes Groupe: investment case (2005 figures) Increasing penetration of the French market : Advertisers strategy of moving upmarket, via the Internet: No substitution between printed and online directories : New pockets of growth in local advertising: Total number of advertisers +4.5% Penetration France (21%) < average Europe (26%) Average revenue per advertiser +23% and number of Internet advertisers +10% 65% of advertisers are present on both platforms Launch of Sustained growth in revenues : High cash generation: High remuneration of shareholders: +6%, of which +12% on online Directories and 13% in Spain 454 million of operating free cash flow cash (+12%) 290 million distributed, distribution rate 100%, share yield 4.5% Online Directories - 18 May

25 PagesJaunes Groupe: main results 2005 (2004 on a like-for-like basis) PagesJaunes in France Inter. & Subsidiaries 3% Rev Rev % 67% Printed directories Online services Others 25% 27% 48% BtoC directories Kompass businesses Direct marketing and cartography m Change m Change Rev % Rev % GOM % GOM na Consolidated income m Change Rev % NI (1) % m Change GOM % FCF (2) % (1) Net income (2) Operating free cash flow (see glossary) Online Directories - 18 May

26 Revenues on a constant publication basis in the first quarter of 2006 (in millions of euros) First quarter Change PagesJaunes in France % Printed directories % of which PagesJaunes % of which L Annuaire % Online services % of which Internet % of which Minitel % Other revenues % International & Subsidiaries % BtoC directories % of which QDQ Media % Kompass businesses % Direct marketing and geographic services % Inter-segment (1.6) (0.4) na Consolidated revenues % Online Directories - 18 May

27 IFRS income statement 2005 Second half Full year (12 months) (In millions) Change 2005/ Change 2005/2004 Revenues % 1, % External purchases (184.6) (173.7) 6.2% (330.4) (317.6) 4.0% Other operating income and expenses % % Labour costs: - Salaries and charges (155.4) (145.8) 6.6% (297.6) (269.0) 10.6% Gross operating margin (GOM) % % - Employee profit-sharing (18.4) (17.1) 7.8% (32.9) (29.9) 10.0% - Share-based payment (16.3) (19.9) -18.1% (20.5) (25.3) -19.0% Depreciation and amortisation (5.3) (5.2) 2.7% (9.7) (10.1) -3.5% Impairment of fixed assets Result of asset disposals (0.5) (0.6) Restructuring costs (0.4) (0.4) Operating income % % Net financial income (expense) % % Corporation tax (84.9) (89.3) -4.9% (148.9) (149.3) -0.3% Net income % % Online Directories - 18 May

28 IFRS revenues on a constant consolidation basis (In millions) 4th quarter th quarter 2004 Change 2005/ months months 2004 Change 2005/2004 PagesJaunes en France % % Printed directories % % of which PagesJaunes % % of which L Annuaire % % Online services % % of which Internet % % of which Minitel % % Other revenues % % International & Subsidiaries % % BtoC Directories % % of which QDQ Media % % On like-for-like publication basis (1) % Kompass businesses % % Relational marketing and geographic services % % Inter-segment (1.6) (0.9) - (4.3) (2.4) - Consolidated revenues % 1, , % On like-for-like publication basis % (1) like-for-like publication basis for printed directories: see glossary Online Directories - 18 May

29 IFRS income statement on constant consolidation basis in 2005 Second half Full year (12 months) (In millions) Change 2005/ Change 2005/2004 Revenues % 1, , % Revenues on like-for-like publication basis % 1, , % External purchases (184.6) (178.9) 3.2% (330.4) (331.9) -0.5% Other operating income and expenses % % Labour costs: - Salaries and charges (155.4) (150.8) 3.1% (297.6) (283.7) 4.9% Gross Operating Margin (GOM) % % GOM on like-for-like publication basis % % - Employee profit-sharing (18.4) (17.3) 6.4% (32.9) (30.2) 9.1% - Share-based payment (16.3) (19.9) -18.1% (20.5) (25.3) -19.1% Depreciation and amortisation (5.3) (5.6) -5.4% (9.7) (10.9) -10.5% Impairment of fixed assets Result of asset disposals (0.5) (0.6) (0.4) 52.8% Restructuring cost (0.4) (0.4) Operating income % % Net financial income expense % % Corporation tax (84.9) (91.2) -6.9% (148.9) (150.8) -1.3% Net income % % Online Directories - 18 May

30 IFRS income statement on a constant consolidation basis by segment PagesJaunes in France Int. & Subsidiaries (In millions) Change 2005/ Change 2005/2004 Revenues % % External purchases (287.2) (288.4) -0.4% (47.4) (45.8) 3.5% Other operating income and expenses % (0.9) (3.5) -74.7% Labour costs: - Salaries and charges (242.6) (231.4) 4.8% (55.0) (52.3) 5.1% Gross Operating Margin (GOM) % 5.5 (2.2) na - Employee profit-sharing (32.3) (29.4) 10.0% (0.6) (0.7) -23.7% - Share-based payment (19.1) (23.5) -18.7% (1.3) (1.8) -24.4% Depreciation and amortisation (5.9) (6.7) -12.0% (3.8) (4.2) -8.2% Impairment of goodwill Result of asset disposals (0.5) (0.4) 49.4% Restructuring costs (0.4) 0.0 na Operating income % (0.6) (8.9) na (1) Constant consolidation basis: see glossary Online Directories - 18 May

31 Cash flow statement based on historical data (In millions) Net cash flow from operations Net cash flow used in investment activities (105.0) (32.1) Net cash flow used in financing activities (252.7) (268.0) Net change in cash (94.3) 62.1 Effect of changes in exchange rates on cash Cash at beginning of period Cash at end of period Short-term investments Gross debt (13.3) (14.6) Net cash position Online Directories - 18 May

32 Main activity indicators Total number of advertisers 561, , ,513 Average revenue per advertiser ( ) 1,477 1,533 1,528 New advertisers 82,080 98, ,912 Retention rate 85.1% 86.5% 86.8% Number of print advertisers 532, , ,435 Average revenue per advertiser - print ( ) 1,118 1,124 1,109 Number of advertisers online services (1) 401, , ,866 of which number of Internet advertisers 267, , ,553 Average revenue per Internet advertiser ( ) (1) advertisers on pagesjaunes.fr (Internet) and/or on PagesJaunes 3611 (Minitel) Online Directories - 18 May

33 Legal structure as at March 31, 2006 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% PagesJaunes Marketing Services Relationship Marketing Edicom B2C directories in Morocco 100% 100% Eurodirectory PagesJaunes Liban* B2C directories 100% 49% Editus Luxembourg B2C directories PagesJaunes Outre-Mer* B2C directories 100% * Unconsolidated subsidiaries in 2006 Online Directories - 18 May

34 Breakdown of capital Shareholding structure of PagesJaunes Groupe 44.2% France Télécom 1.8% Public Employees 54.0% million shares Online Directories - 18 May

35 Glossary Constant consolidation basis: in order to make the 2004 data comparable to the 2004 data have been restated on the basis of the consolidated group in The consolidated information for full-year 2004 on a constant consolidation basis reflects the consolidation of QDQ Media. Mappy. Editus Luxembourg. Kompass Belgium since 1 January e-sama since 1 February 2004 and Edicom since 1 July These structural effects only affect the International & Subsidiaries segment. The figures presented for 2004 are unaudited. Gross Operating Margin (GOM): revenues less external purchases. operating expenses (net of operating income) and salaries and social charges. The salaries and social charges included in the gross operating margin do not include employee profitsharing or the cost of share-based payment. Constant publication basis: since the publication schedule of the printed directories for the fourth quarter of 2004 is not comparable with that of the fourth quarter of the revenues on a constant publication basis for the fourth quarter of 2004 are obtained by applying the publication basis for printed directories applicable in the fourth quarter of Online Directories - 18 May

36 Contact details Investor Relations Vincent Gouley vgouley@pagesjaunes.fr Online Directories - 18 May