Presentation of Arndt C. Groth, CEO of Publigroupe during the Vontobel Medien Tag 2014

1. PubliGroupe going forward
Focus on a portfolio of technology-oriented companies
in media & advertising sector
Vontobel Medientag – Zurich, 27 January 2014
1

2. PubliGroupe financial results on 7 March 2014
From news release of 19 November 2013:
“… PubliGroupe confirms the anticipated achievement of a balanced
operating result for the full year 2013 as announced in late August along
with an expected net result around the level of the 2013 half-year report.
The half-year result for 2013 came to CHF -9.5 million. The two business
segments Search & Find and Digital & Marketing Services (DMS) are
developing positively … progressing according to plan are the
announced measures to realign capacities and structures at the Holding
and Publicitas levels as well as the implementation of the new strategy
for Publicitas presented at the end of August 2013 with the goal of a
more efficient and increasingly automated media sales approach.”
2

3. Key investment highlights of PubliGroupe
Key Driver
Measures
Profitability
Increasingly digital company with mix of established and
fast-growing companies
Stopping cash drain at Publicitas under new
management
Continued divestment of non-core assets or assets that
are not providing financial returns
Adaptation of holding in line with industry benchmarks
Growth potential
Increasing market demand for ad technology and
ad trading services
Relevant market
share; leading
players in respective
markets
Leading media sales house in Switzerland with
Publicitas; local.ch leader in Swiss directory matchmaking market; European leadership with Improve
Digital and Zanox
3

4. PubliGroupe investment highlights (detail 1)
1.


Capitalising on digital transformation…
Internet ads growing at double digit rate, driven by
continued increase in online penetration and higher
share of ads budget allocated to this media
PubliGroupe focuses on online and is ideally
positioned to capture the growing demand for ad
trading and ad technology solutions
Western Europe Internet ad spend
2005-2015F
2.
and value enhancing services

Offering a comprehensive palette from branding to
lead generation

Investing in transaction-oriented fields and fast
growing RTA/programmatic buying market that
provides better rates for long-tail inventory
Western Europe Ad Spend
CAGR 2005-2015F
US$ bn, % share of total Ad Spend
28.7
Newspapers (4.4%)
Magazines (4.8%)
Television
Radio
(0.1%)
Cinema
28%
(0.3%)
(0.2%)
5.3
Outdoor
5%
Internet
0.3%
18.5%
05 06 07 08 09 10 11 12 13F 14F 15F
Market Share
Source: ZenithOptimedia, Advertising Expenditure Forecasts September 2013.
4
Source: PubliGroupe Investors Day 2012

5. PubliGroupe investment highlights (detail 2)
3.
Solutions across the value chain …
4.

Technological platforms operated for
publishers, agencies and advertisers


Owning the end to end relationship between supply
and demand


Digital covers all marketing disciplines


… and leading in attractive markets
Publicitas leading media sales organisation in
healthy Swiss economy
Uncontested #1 position of local.ch (50%
PubliGroupe) on mobile devices in Switzerland
Capitalise on Zanox (47.5% PubliGroupe)
leadership in Europe
Further develop Improve Digital growth in Europe
Digital display ecosystem and selected PubliGroupe investments
Agency
DemandSide
Platform
Performance
Marketing
SupplySide
Platform
“The Mark”
5
# 2 position in market
Premium publisher services
Publisher
ADUIENCE
ADVERTISIER
Advertiser & agency services

6. Accomplishments since 2012
Progressing along three distinct paths
• Reduction of overhead costs; currently 29 FTEs at
1.
Streamlining of
operations
•
•
2.
Focusing on
core assets
headquarters in Lausanne, further reductions planned
Appointment of new CEO at Publicitas with turnaround
experience; continued, effective rightsizing at Media
Sales
At local.ch/Zanox efficiency programs in place, with
effects to be realised in 2014 and 2015.
• Sale of 3 buildings in Bern & Lausanne
• Sale of Namics, IT consultancy firm
• Sale of 51% of Xentive to Mediaspectrum, Bostonbased company offering premier software solutions
• Sale of further, non-strategic assets planned
• Acquisition of Improve Digital, leading European
3.
Developping
tech-oriented
assets
•
•
6
supply-side platform operator
Establishment of Spree7 together with MediaMath as
a leading demand-side platform (DSP) provider that
caters to marketers‟ media buying needs
Establishment of automated media marketplace at
Publicitas, together with Mediaspectrum
a
a
a
a
a
a
• Lean and focused HQ
structure to control and
very selectively support
assets
• Operational efficiencies
realised within key
assets
• Divestment of non-core
assets
ongoing
a
ongoing
ongoing
• Focus on technologyoriented companies in
the media & advertising
sector

7. Portrait core assets
7

8. PubliGroupe segments & companies
Media Sales
Digital & Marketing
Services
„The companies within
the business segment
Media Sales are united
in their common mission:
to be the preferred
partner for media owners
and advertisers
worldwide, selling media
using effective
advertising solutions
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Search & Find
„Search & Find‟ produces
and sells media products
facilitating the search for
persons, companies,
products and services
„DMS‟ brings together a
portfolio of international
marketing and technology
service companies

9. Performance-oriented full-service provider
Media Sales
Search & Find
Digital & Marketing Services
*
* In Oct. 2013 PubliGroupe concluded the sale 51% of
xentive AG to the Boston-based Mediaspectrum Inc
• A Group organised into 3 segments: Media Sales, Search & Find and Digital & Marketing Services
• Each segment has a clear strategy, defined growth targets and agreed performance objectives
• Across the Group one mantra: performance-oriented full-service provider, employing state-of-the-art
data processing tools and information technology
9

10. #1 marketer in Switzerland
Wide media portfolio; international footprint
Number 1 marketer …
Highlights
Billings 2012 in m in CHF
895
• Number 1 marketer in Switzerland
445
322
Publicitas
1
Goldbach
Publisuisse
2
…with an international footprint
Operations with local offices
1) Annual Report 2012: Net Sales
2) Annual Report 2012: Operating Revenue
10
Operations only
• Historic track record as marketer for 123
years
• Unique partner for advertisers, agencies
and media owners, offering a wide media
portfolio with over 7‟000 products
• International footprint with local offices in
more than 20 countries including
emerging markets, access to media in
more than 100 countries

11. Strategy implementation under new CEO
Rightsizing of organisation
Strategic pillars
Full Automation
Full Portfolio
Variabilisation
Focus
11
First results
Become efficient and cost
leader in marketing
advertising space
• Appointment of David Klement as
CTO, starting 2/14, completing the
management team. Main responsibility:
development and introduction of Publicitas ad
exchange.
Offer the most relevant
media portfolio to
advertisers
• Renewal of partnerships and new
partnerships (e.g., AZ
Medien, CdT, FAO, Arena Cinema, Editoria
Abril; S1)
“Flexed” cost base to
address contract gains or
losses
Focus on core activities
• Implementation of system solution of
Mediaspectrum on track. Ongoing
conversations with media owners re. system
solution of Mediaspectrum; NZZ and Le
Temps are first key partners, choosing the
new platform.
• Rightsizing of organisation in Switzerland &
Europe completed resulting in 860 employees
worldwide as of January 2014.

12. local.ch: most popular search platform
New offers – extension of market lead
Commercial success
- >CHF 200 m revenue
on 100% basis
- ~25% EBIT margin
More local
- city-specific start page
- improved search results
More offers
couponing offers
booking restaurants
deeper map integration
Improved usability
tablet optimised user
interface
autocomplete
fault tolerance
12

13. local.ch with higher digital reach
Outperformed against search.ch
4.5
100%
4.0
80%
70%
3.5
60%
50%
3.0
40%
30%
19%
18% 19%
16% 17% 18%
16% 15%
15%
2.5
10% 10%
10%
5%
2.0
0%
Nov Dez Jan Feb Mar Apr May Jun
2013
1 Source: Unique Netmetrix
13
20%
Jul
Aug Sep Oct
local.ch search.ch [rel. position2]
Unique ClientsNetMetrix [mm]
90%

14. Performance Marketing
Maximising sales conversion through performance advertising
Summary
• E-commerce & CPA-based performance
marketing tools continue strong growth
Affiliate Commission Income, UK,
2008-12
£m
• Demand for client acquisition (e-tailers)
and referral monetisation (online
platforms) tools stays strong
• Expansion of available tools, incl.
affiliate networks and performance
display
+5%
+13%
667
700
593
467
490
2008
2009
• PubliGroupe offers leading affiliate and
performance network in Europe, as well
as key German performance agency
Performance Network
14
Source: IAB UK
2010
2011
2012
Performance Agency

15. Zanox
Europe‟s leading performance advertising network
Proposition
Management Team
• #1 Affiliate Network in Europe
Stephanie
Lüdecke (CSO)
• Focus markets DACH, UK, France, Italy, and Benelux
• >4000 advertisers / merchants
• >700 FTE, mostly in commercial sales and account
management roles
Michael
Von Stern (CFO)
• Automated marketplace platform drives campaign
management
Christian
Rebernick (CTO)
• Mobile enabled
• Won several awards, incl. Best Affiliate Network in 2012
More than 4’000 Advertisers
Thomas Joosten (CEO)
Financials (EURm)
Market position
Revenue
•
#1 in UK
#2 in Italy
#2 in Spain
•
15
#1 in France
•
2012
#1 in Benelux
•
2007
•
•
165
#1 in DACH
•
460
#2 in Nordics

16. Premium Publisher Services
Supporting premium media owners to monetise their ad inventory
Summary
• Real-Time Advertising is growing
exponentially
Real-Time Advertising Spend,
France, Germany, UK, 2010-17E
US$ m
2,055
• Publisher Trade Technology is
becoming essential for media owners
+39%
• Inventory Yield Optimisation (Direct
and Programmatic Ad Sales) becoming
a key capability for media owners
701
Mobile &
Video
427
1,522
Direct
928
Indirect
455
1,069
• PubliGroupe offers leading technology
and yield management services
throughout Europe
781
+145%
192
207
79
202
667
783
866
554
301
529
38
2010
2011
2012
2013E 2014E 2015E 2016E 2017E
Publisher Trade Technology
16
Source: IDC

17. Improve Digital
Leading European publisher trade technology
Proposition
Management Team
• #1 European Publisher Ad Exchange and SSP
• Offices in Benelux, Germany, UK, and Spain
• >40 FTE, mostly in tech and sales
• >100 premium publisher customers
• >250 connected demand-side partners, incl. all key DSPs
• State-of-art platform, fully RTA enabled, premiumformat, mobile- / video-enabled, customisable private
exchange
• Won several awards, including 2013 High Growth
Awards, Deloitte Fast 500, Red Herring 100, Inspiring 50
Clients
Joelle Frijters (CEO)
Janneke Niessen (CIO)
Financials
eCPM (EUR)
Billing (EUR)
Impressions (in Mill.)
91
75
47
0.46
0.52
2012
2013*
34
2012
2013*
*2013 preliminary
17

18. Advertiser & Agency services
Helping advertisers & agencies to optimise and execute media strategy
Summary
• Online ad spend continues to grow at
double digit rates
• New online trade tools offer better
monetisation options and add complexity
Advertising Spend, Western Europe,
2012-16E
US$ bn
+3%
124
8
128
8
Other
+2%
• Advertisers and agencies need more help
defining complex trade strategies
112
8
115
8
120
8
33
37
Online
+10%
27
30
40
• PubliGroupe assists advertisers and
agencies to optimise ROI and execute
best-in-class trade strategies
13
13
13
13
13
Magazines
0%
26
25
25
25
25
News
papers
-1%
39
39
40
41
42
RTV
+2%
2012
2013E
2014E
2015E
2016E
Trade Desk
Powered by
18
Source: Zenith Optimedia
Media Agency

19. Powered by
Spree 7
Transparent trading desk for independent advertising agencies
Proposition
Management Team
• Trading desk for independent agencies and nonagency represented advertising customers
• Exclusive Mediamath partner in DACH
• Small, strong team of dynamic ad trade experts
• Early-stage investment
• Berlin-based
• Aim to grow trade volumes, data usage, and
eventually develop trade platform
Selection of clients/partners
Victor Zawadzki
(CEO)
Thomas Kaczensky
(VP Tech)
Milestones
• Fully operational since July 2013
• Signed 26 agencies to date, aiming to get to 50 in
2014
• Ran more than 100 campaigns in past 6 months;
about 20-50 campaigns per month at present
• Strong focus and good progress on implementation
of data (e.g. Zanox)
19

20. Executive summary:
PubliGroupe will deliver growth & profits
 Creation of value through leveraging the different assets



20
in the Group, building a portfolio of leading advertising
technology-oriented companies
Effective measures at Publicitas being implemented
under new management
Divestment of non-core assets or assets that are not
providing financial returns will continue
Adaptation of holding to the level of profit of the
remaining Group in line with industry benchmarks

21. Solid balance sheet;
focus on core assets
Andreas Schmidt, Chief Financial Officer
21

22. Solid balance sheet
Recorded equity does not fully reflect full value of the group
as of
CHF mio
as of

No goodwill
With the Swiss GAAP FER
presentation, all goodwill is
offset with equity

Negative Zanox value
Zanox is recorded with a
negative equity
(-CHF 19.6 m) because of
this goodwill treatment

Under-valued real estate
In addition, real estate is
recorded with adjusted
acquisition cost
30.06.2013 31.12.2012
Current assets
331.8
379.2
Non-current assets
146.3
153.0
Total assets
478.1
532.2
Current liabilities
263.1
250.9
71.4
72.6
137.3
195.6
6.3
13.1
478.1
532.2
Non-current liabilities
Equity, shareholders of PubliGroupe Ltd
Minority interests
Total liabilities and equity
Conservative balance sheet approach
Participations and real estate values only partly included
22

23. Key assets in PubliGroupe portfolio
Local JV with Swisscom
Zanox JV with Axel Springer
Improve Digital
Spree 7
Neumühlequai Zürich
Publicitas
50%
47.5%
85%
80%
100%
100%
Leading search platform
N°1 European affiliate network
Well positioned SSP
Promising DSP partnership w. leading tech company Media
Top location ZH
Leading media sales organisation in CH
with international assets (especially Asia)
PubliGroupe is increasingly becoming a digital company with mix of
established and fast-growing companies
23

24. PubliGroupe real estate portfolio - key figures
3 assets located in Switzerland and in France
Zürich
Delémont
Paris
1982 | 4'695m2
3'518 TCHF
1992 | 1'045m2
53 TCHF
1970 | 365m2
41 TCHF
Total surface
6’105 m2
Total rental revenue
24
:
:
CHF 3.6 m

25. PubliGroupe press participations
FPH (Freie Presse Holding)

Subsidiary of the Swiss publishing house Neue
Zürcher Zeitung, combining all major regional press
participations of the group

St. Galler Tagblatt, Thurgauer Tagblatt, LZ Medien
are only some of the titles in FPH portfolio
Stake
%
25%
SNP (Société Neuchâteloise de Presse)


Part of the Hersant Group and one of the prominent
newspaper publishers in French speaking
Switzerland
29%
Key media : L'Express and L'Impartial
Südostschweiz Presse AG

25
Subsidiary of the Südostschweiz Medien Group in
charge of printing well known titles such as
Südostschweiz Graubünden, Bündner Tagblatt,
Bündner Woche
20%

26. Thank you; Q&A
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