Publigroupe Vontobel Medientag 27 Januar 2014

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PubliGroupe going forwardFocus on a portfolio of technology-oriented companies in media & advertising sector

Vontobel Medientag – Zurich, 27 January 2014

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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.”

PubliGroupe financial results on 7 March 2014

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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 match-making market; European leadership with Improve Digital and Zanox

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PubliGroupe investment highlights (detail 1)

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

1. Capitalising on digital transformation… 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

Source: PubliGroupe Investors Day 2012

Western Europe Internet ad spend 2005-2015FUS$ bn, % share of total Ad Spend

05 06 07 08 09 10 11 12 13F 14F 15F

5.3

28.6653887035702

5%

28%

Market Share

Western Europe Ad Spend CAGR 2005-2015F

Newspapers

Magazines

Television

Radio

Cinema

Outdoor

Internet

(4.4%)

(4.8%)

(0.3%)

(0.1%)

(0.2%)

0.3%

12.0%

Source: ZenithOptimedia, Advertising Expenditure Forecasts September 2013.

CAGR 19%

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Advertiser & agency services

PubliGroupe investment highlights (detail 2)

Technological platforms operated for publishers, agencies and advertisers

Owning the end to end relationship between supply and demand

Digital covers all marketing disciplines

3. Solutions across the value chain … 4. … 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

AD

VE

RT

ISIE

R

AD

UIE

NC

EPerformanceMarketingAgency

Demand-Side

Platform

Premium publisher services

Supply- Side

PlatformPublisher

Digital display ecosystem and selected PubliGroupe investments

“The Mark”

# 2 position in market

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• Lean and focused HQ structure to control and very selectively support assets

• Operational efficiencies realised within key assets

• Divestment of non-core assets

• Focus on technology-oriented companies in the media & advertising sector

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Accomplishments since 2012Progressing along three distinct paths

1.Streamlining of operations

2. Focusing on core assets

3.Developping tech-oriented

assets

• Reduction of overhead costs; currently 29 FTEs at 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, Boston-based company offering premier software solutions

• Sale of further, non-strategic assets planned

• Acquisition of Improve Digital, leading European 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

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ongoing

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Portrait core assets

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PubliGroupe segments & companies

Media Sales

‘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

Search & Find

‘Search & Find’ produces and sells media products facilitating the search for persons, companies, products and services

Digital & Marketing Services

‘DMS’ brings together a portfolio of international marketing and technologyservice companies

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Performance-oriented full-service provider

• 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

Media Sales Search & Find Digital & Marketing Services

*

* In Oct. 2013 PubliGroupe concluded the sale 51% of xentive AG to the Boston-based Mediaspectrum Inc

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Highlights

• Number 1 marketer in Switzerland

• 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 countriesOperations with local offices Operations only

Number 1 marketer …

…with an international footprint

Billings 2012 in m in CHF

1) Annual Report 2012: Net Sales2) Annual Report 2012: Operating Revenue

Publicitas Goldbach Publisuisse

895

445322

1 2

#1 marketer in Switzerland Wide media portfolio; international footprint

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Strategic pillars

• Appointment of David Klement as CTO, starting 2/14, completing the management team. Main responsibility: development and introduction of Publicitas ad exchange.

• Renewal of partnerships and new partnerships (e.g., AZ Medien, CdT, FAO, Arena Cinema, Editoria Abril; S1)

• 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.

First results

Strategy implementation under new CEORightsizing of organisation

Full Automation

Full Portfolio

Variabilisation

Focus

Become efficient and cost

leader in marketing

advertising space

Offer the most relevant

media portfolio to

advertisers

“Flexed” cost base to

address contract gains or

losses

Focus on core activities

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- 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

local.ch: most popular search platform New offers – extension of market lead

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Nov Dez Jan Feb Mar Apr May Jun Jul Aug Sep Oct2.0

2.5

3.0

3.5

4.0

4.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5%10% 10%

16% 17% 18% 19%15%

18% 19%16% 15%

Un

iqu

e Cl

ien

tsN

etM

etri

x [m

m]

loca

l.ch

sea

rch

.ch

[re

l. p

osit

ion

2]

2013

1 Source: Unique Netmetrix

local.ch with higher digital reachOutperformed against search.ch

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Performance MarketingMaximising sales conversion through performance advertising

Summary

• E-commerce & CPA-based performance marketing tools continue strong growth

• Demand for client acquisition (e-tailers) and referral monetisation (online platforms) tools stays strong

• Expansion of available tools, incl. affiliate networks and performance display

• PubliGroupe offers leading affiliate and performance network in Europe, as well as key German performance agency

700667

593

467 490

2008

+5%

+13%

2012201120102009

Affiliate Commission Income, UK, 2008-12£m

Performance Network Performance Agency

Source: IAB UK

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ZanoxEurope’s leading performance advertising network

Proposition

Thomas Joosten (CEO)

More than 4’000 Advertisers

Management Team

Stephanie Lüdecke (CSO)

MichaelVon Stern (CFO)

ChristianRebernick (CTO)

• #1 Affiliate Network in Europe

• Focus markets DACH, UK, France, Italy, and Benelux

• >4000 advertisers / merchants

• >700 FTE, mostly in commercial sales and account management roles

• Automated marketplace platform drives campaign management

• Mobile enabled

• Won several awards, incl. Best Affiliate Network in 2012

460

165

20122007

Revenue

Financials (EURm)

• #1 in DACH

• #1 in Benelux

• #1 in France

• #1 in UK

• #2 in Italy

• #2 in Spain

• #2 in Nordics

Market position

23% CAGR

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Premium Publisher ServicesSupporting premium media owners to monetise their ad inventory

Summary

• Real-Time Advertising is growing exponentially

• Publisher Trade Technology is becoming essential for media owners

• Inventory Yield Optimisation (Direct and Programmatic Ad Sales) becoming a key capability for media owners

• PubliGroupe offers leading technology and yield management services throughout Europe

529 667 783 866 928

207

455

701

301192

38

427202

+39%

Direct

2017E

2,055

+145%

Mobile &Video

2016E

1,522

2015E

1,069

79

2014E

781

2013E

554

201220112010

Indirect

Real-Time Advertising Spend, France, Germany, UK, 2010-17EUS$ m

Publisher Trade Technology

Source: IDC

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Improve DigitalLeading European publisher trade technology

Proposition

Joelle Frijters (CEO) Janneke Niessen (CIO)

Clients Financials

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, premium-format, mobile- / video-enabled, customisable private exchange

• Won several awards, including 2013 High Growth Awards, Deloitte Fast 500, Red Herring 100, Inspiring 50

91

75

2013*

0.52

2012

0.46

Impressions (in Mill.)

eCPM (EUR)

47

34

2013*2012

Billing (EUR)

*2013 preliminary

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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

• Advertisers and agencies need more help defining complex trade strategies

• PubliGroupe assists advertisers and agencies to optimise ROI and execute best-in-class trade strategies

+3%

RTV +2%

Newspapers -1%

Magazines 0%

Online +10%

Other +2%

2016E

128

42

25

13

40

8

2015E

124

41

25

13

37

8

2014E

120

40

25

13

33

8

2013E

115

39

25

13

30

8

2012

112

39

26

13

27

8

Advertising Spend, Western Europe, 2012-16EUS$ bn

Trade Desk Media Agency

Powered by

Source: Zenith Optimedia

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Spree 7Transparent trading desk for independent advertising agencies

Proposition

Selection of clients/partners

Management Team

Thomas Kaczensky (VP Tech)

Victor Zawadzki(CEO)

• Trading desk for independent agencies and non-agency 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

Powered by

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)

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Creation of value through leveraging the different assets 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

Executive summary:PubliGroupe will deliver growth & profits

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Solid balance sheet; focus on core assets

Andreas Schmidt, Chief Financial Officer

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Solid balance sheetRecorded equity does not fully reflect full value of the group

Þ Conservative balance sheet approach

Þ Participations and real estate values only partly included

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

as of as of

CHF mio 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

Non-current liabilities 71.4 72.6

Equity, shareholders of PubliGroupe Ltd 137.3 195.6

Minority interests 6.3 13.1

Total liabilities and equity 478.1 532.2

NOTE: HALF-YEAR 2013 MATERIAL

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Key assets in PubliGroupe portfolio

Þ PubliGroupe is increasingly becoming a digital company with mix of

established and fast-growing companies

Local JV with Swisscom 50% Leading search platform

Zanox JV with Axel Springer 47.5% N°1 European affiliate network

Improve Digital 85% Well positioned SSP

Spree 7 80% Promising DSP partnership w. leading tech company MediaMath

Neumühlequai Zürich 100% Top location ZH

Publicitas 100% Leading media sales organisation in CH

with international assets (especially Asia)

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PubliGroupe real estate portfolio - key figures3 assets located in Switzerland and in France

Zürich Delémont Paris

1982 | 4'695m2

3'518 TCHF1992 | 1'045m2

53 TCHF1970 | 365m2

41 TCHF

Þ Total surface : 6’105 m2

Þ Total rental revenue : CHF 3.6 m

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PubliGroupe press participations

29%

25%

20%

Stake%

Part of the Hersant Group and one of the prominent

newspaper publishers in French speaking Switzerland

Key media : L'Express and L'Impartial

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

Südostschweiz Presse AG

Subsidiary of the Südostschweiz Medien Group in

charge of printing well known titles such as

Südostschweiz Graubünden, Bündner Tagblatt,

Bündner Woche

SNP (Société Neuchâteloise de Presse)

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Thank you; Q&A