February 15 th 2018 INVESTOR PRESENTATION 1
DISCLAIMER This document contains forward-looking statements. Any forward-looking statement does not constitute forecasts as defined in European regulation (EC) 809/2004. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company’s current beliefs, assumptions and expectations of its future performance, taking into account all information currently available. Forward-looking information and statements are not guarantees of future performance and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company. These risks and uncertainties include those discussed or identified under section 4 “Risk Factors” of the SoLocal Group’s “ Document de référence ” which was filed with the French financial markets authority (AMF) on 28 April 2017. Important factors that could cause actual earnings to differ materially from the earnings anticipated in the forward-looking statements include the effects of competition, usage levels, the success of the Group’s investments in France and abroad, and the effects of the economic situation. SoLocal Group, its affiliates, directors, advisors, employees and representatives expressly disclaim any liability whatsoever for such forward-looking statements. The forward-looking statements contained in this document apply only at the date of this document. SoLocal Group does not undertake to update any of these statements to take account of events or circumstances arising after the date of said document or to take account of the occurrence of unexpected events. Accounting data presented on an annual basis are in audited consolidated form, but accounting data indicated on a quarterly or half- yearly basis are in unaudited consolidated form. Business indicators covered in the presentation are for continued activities. All financial data and indicators are published in details within the report of Consolidated financial information as of 31 December 2017 which is available on the corporate website, www.solocalgroup.com (finance area). 02/15/2018 - INVESTOR PRESENTATION 2
1 SOLOCAL 2020 INVESTMENT CASE
SOLOCAL OVERVIEW THE PREFERRED LOCAL DIGITAL SERVICES PARTNER for ALL BUSINESSES in supporting THEIR GROWTH 2.4BN visits (2) >450k web sites (3) €756M 2017 rev. (2) 55% reach (1) 469K customers >50K camp/year 150K daily updates 35M profiles 4M listed pros (1) Source Médiamétrie October 2017. Reach is defined as the number of unique visitors of a website, expressed as a percentage of a reference population during a given period (scope France) 02/15/2018 - INVESTOR PRESENTATION 4 (2) Continued activities (3) Including storelocators
2017 FINANCIAL RESULTS (1) 2016 Q4-16 2017 Q4 €M REVENUE 756 200 -5.7% -3.6% 2017 GUIDANCE % digital 84% 84% +2.1% Internet 636 0% 172 INTERNET REVENUE GROWTH: ~ -1% EBITDA rec. (2) 196 - -15.1% - EBITDA: ≥€190M NET DEBT 332 - -70% - CASH POSITION 86 27 (3) - - (1) Continued activities; (2) EBITDA calculated as Group revenue minus net external expenses and personnel expenses. Personnel expenses include 02/15/2018 - INVESTOR PRESENTATION 5 salaries and charges, share-based payments and employee profit-sharing; (3) Taking into account 2016 €32M of deferred payment of financial interest Source: Company information, SoLocal Group 2016 and 2017 financial statements
FROM TO PAGESJAUNES CENTRIC DIGITAL SERVICES COMBINED WITH COMPANY LEVERAGING 2017 2018 -2020 DIGITAL MARKETING OWNED MEDIA • Revenue / EBITDA decline • Back to profitable growth • Local Search / Media • Full web & Apps Digital services • Sales centric • User / Customer Centric • SMB focus • All customer segments • Annual engagement profile • Lifetime value / Recurring revenues • Massive debt • Deleveraged balance sheet • Lack of cash generation • Sustainable cash generation • Fragmented organization • Integrated, cost efficient, agile • Inside out – Silo – Static • Customer / User – Team – Entrepreneur 02/15/2018 - INVESTOR PRESENTATION 6
KEY INVESTMENT HIGHLIGHTS 1 Fast-growing digital services company Key competitive advantage through combination of massive rich local content, powerful 2 data, local coverage, strong partnerships & scalable tech platforms 3 Recurring revenue businesses with increasing customer retention rate EBITDA growth driven by cost savings and accelerated sizeable revenue growth 4 5 Sustainable cash flow generation through investment discipline & efficient working capital mngt 6 Seasoned management team with deep digital expertise and proven business track-record 02/15/2018 - INVESTOR PRESENTATION 7
2 SOLOCAL 2020 SOLOCAL UPDATE
A FINANCIAL RESTRUCTURING SUCCESS… SUSTAINABLE FINANCING OWNERSHIP STRUCTURE (1) STRUCTURE 1 JO Hambro Capi 2 River & Mercantile AM 3 DNCA Invest 4.7x 4 Ed de Rothschild AM 5 Top 20 6 7 [50-60%] 1.7x 8 9 10 2016 2017 … 20 Leverage (Net Debt/EBITDA) (1) Ownership as of 31/12/2017 based on threshold crossing declarations 02/15/2018 - INVESTOR PRESENTATION 9
… COUPLED WITH A NEW GOVERNANCE… NEW BOARD NEW CHAIRMAN NEW CEO Fully revamped board Diverse and multi- disciplinary skills 100% independent directors Pierre DANON Eric BOUSTOULLER Including two Former Chairman and CEO of Former Corporate Vice President of representatives of Numericable and Chairman of Microsoft Corporation largest « Long-only » TDC Group and Western Europe area shareholders 02/15/2018 - INVESTOR PRESENTATION 10
… AND A NEW MANAGEMENT TEAM ALIGNED WITH SHAREHOLDER INTERESTS Eric BOUSTOULLER Arnaud DEFRENNE Frédéric OBALA Christophe PARCOT Chief Product Officer* Chief Executive Officer Chief Tech Officer Chief Revenue Officer Chief Media Officer Former L’Oréal, SoLocal Former Teads COO Digitas CTO & Yahoo EMEA GM Pascale FURBEYRE Jean-Jacques BANCEL Richard CUIF Pascal GARCIA Chief Marketing Officer Chief Financial Officer Chief HR Officer General Secretary Former Devanlay, Former Lesfurets, Former SGD Pharma, SoLocal Microsoft CHRO BforBank, Yahoo EU CMO Ethypharm, ASF, CFO 02/15/2018 - INVESTOR PRESENTATION * Acting as 11
LEVERAGING STRONG ASSETS TO DELIVER SUCCESS #1 #2 #3 #4 #5 AUDIENCE DATA TECH PARTNERS COVERAGE 02/15/2018 - INVESTOR PRESENTATION 12
#1 MASSIVE & GROWING O&O AUDIENCE ACROSS ALL DEVICES 55% +2.4% 2M MONETIZATION ENGINE SoLocal reach Growth versus Daily used App 2016 (1) in October 2017 INTENT-DRIVEN 2.4bn (1) +5% DATA Visits on SoLocal Growth contacts media in 2017 (1) Fixed & mobile audience for fiscal year 2017. Continued activities 02/15/2018 - INVESTOR PRESENTATION 13
#2 UNIQUE LOCAL USER & PRO DATA 2 > 5M DIRECTLY GEO-LOCATED MOBILES 1 2.4BN VISITS & 35M PROFILES Geo-profiling: high value data Physical location, moment of life, data Allow in-store tracking: Geotracking (2M daily) on users purchasing intent MASSIVE DATA MONETIZATION OPPORTUNITIES 3 >7M SALES POINTS LOCATED VIA MAPPY 5 THIRD-PARTY DATA DEALS Strong complement to geo-profiling and Strong interest from third- geo-tracking parties in our local commercial chanel Gravity 4M LISTED PROS / RICH CONTENT ON LOCAL BUSINESSES 4 Addresses, business description, opening hours, photos, … 02/15/2018 - INVESTOR PRESENTATION 14
#3 IN-HOUSE DIGITAL SERVICES PLATFORM OWNED MEDIA PROGRAMMATIC DMP – Adserver- Bidder SCALABILITY / INDEPENDENT PRESENCE MGT WEB SITES Full web diffusion platform Building platform 02/15/2018 - INVESTOR PRESENTATION 15
#4 BALANCED AND STRONG PARTNERSHIPS WITH GAFAM – 1/2 LOCAL CONTENT DIGITAL ADVERTISING PROVIDER INTEGRATOR Purchase SoLocal services 1 Content: addresses, Customer opening Purchase: FREE 3 1 2 Attribution hours, Adwords, Create / manage / Audience: 2 booking,… BingAds,.. optimize campaign redirection / deliver contacts to Pj.fr 02/15/2018 - INVESTOR PRESENTATION 16
#4 BALANCED AND STRONG PARTNERSHIPS WITH GAFAM – 2/2 LOCAL CONTENT DIGITAL ADVERTISING PROVIDER INTEGRATOR 150 K/day UPDATES OF HIGH GROSS MARGIN DIGITAL SERVICES DELIVERED >50% BEST-IN-CLASS LOCAL CONTENT PRIVILEGED APIs (1) STATE-OF-THE-ART IN-HOUSE EXPERTISE: - Display design / AdText - Tech platform & Algorithms - Realtime Selection of optimized keyword - Campaign management - Customer support & advice (1) API: Application Programming Interface 02/15/2018 - INVESTOR PRESENTATION 17
#5 FULL LOCAL COVERAGE: SALES & CUSTOMER SUPPORT (1) 1,800 Sales reps LONGSTANDING HIGH LEVEL OF RELATIONSHIP SUPPORT customer 220 support (1) As of 12/31/2017 02/15/2018 - INVESTOR PRESENTATION 18
UNIQUE COMBINATION OF STRENGTHS TO SERVE CUSTOMERS GAFAM WEB AGENCIES PURE AD TECH AUDIENCE • Owned media • Massive Audience DATA & TECH • Rich daily updated local content • Purchase-driven & geolocated data • Proprietary programmatic technology LOCAL PRESENCE • 1,800 sales reps • SMB field approach • Local contact with nat. brand POS 02/15/2018 - INVESTOR PRESENTATION 19
3 SOLOCAL 2020 STRATEGIC OUTLOOK
Recommend
More recommend
