Page 1 Tamedia – the leading Swiss media group
Investora, 19 September 2019, Zurich Page 2 Tamedia – Where are we today Outstanding market positions and digitally profitable
No. 1 in digital free- & paid 76% news out of print No. 1 in jobs classifieds digital No. 1 in real estate classifieds 5 pro forma EBITDA share digital No. 1 in marketplaces Swiss people use our services business in 2019-6
Switzerland’s most Leading positions in free and profitable media group paid news Media network with highest penetration in Switzerland A highly profitable Leading positions in digital digital business classifieds and marketplaces
Page 3 Tamedia – What is our offer for consumers and advertisers An attractive partner for consumers and advertisers
high reach free and paid troughout news Switzer- land
TV, no. 1 jobs, real data driven Corporate Consumer scheduling, in print and estate, cars advertising and other Client digital services
auction and personalized cross media native marketplaces content bundles advertising
Page 4 Figures 2019-6
Investora, 19 September 2019, Zurich Page 5 Half-year results 2019 Goldbach and Zattoo drive revenue growth
2018-6 2019-6 EBIT EBIT +10% adj. margin margin 524 2018-6 15.2% 11.0% 477 2019-6 13.6% 7.8%
+10 +18
20 30 22 4
Depreciation and amortisation Financial income from company mergers +7% +34% 85 92 -22% 53 41 40 54
Revenue EBITDA EBIT Net income Revenue and net income in 2019-6 in CHF millions
Page 6 Half-year results 2019 Organic growth down 4 per cent
2018-6 275 2018-6 290 Paid Media* -6% -5% 2019-6 260 2019-6 276
-15 -14 2018-6 86 2018-6 94 Free Media and -5% +51% Commercialisation* 2019-6 82 2019-6 142
-4 +48 Marketplaces and 2018-6 125 2018-6 125 +1% +10% Ventures* 2019-6 127 2019-6 137
+2 +12 2018-6 455 2018-6 478 Tamedia total**: -4% +10% 2019-6 437 2019-6 524
-18 +47 Organic revenue growth in CHF Consolidated revenue growth in millions CHF millions Page 7 *Business units or associated companies that were taken into account in the consolidation for six months in both 2018-6 and 2019-6; eliminations and IAS 19 reconciliations were not taken into account ** Eliminations and IAS reconciliations were taken into account Half-year results 2019 Marketplaces and Ventures with biggest EBIT
290 2018-6 2019-6 276
EBITDA EBIT EBITDA EBIT EBITDA EBIT margin: (adj.)* margin: (adj.)* margin: (adj.)* 142 6.4% margin: 22.9% margin : 137 30.7% margin : 2.5% 19.7% 125 27.0% 2018-6: 2018-6: 2018-6: 7.7% 2018-6: 94 14.8% 2018-6: 42.6% 2018-6: 4.8% 13.8% 40.0%
53 50 42 37 33 28 22 18 14 7 14 13
Revenue EBITDA EBIT (adj.)* Revenue EBITDA EBIT (adj.)* Revenue EBITDA EBIT (adj.)*
Paid Media in CHF millions Free Media and Commercialisation Marketplaces and Ventures in CHF in CHF millions millions
Page 8 *Result before effects of company mergers Half-year results 2019 Depreciation/amortisation from effects of company mergers has risen to CHF 30 million (previous year: CHF 20 million)
EBITDA 17.6 32.5 42.1 91.5
Operational depreciation/ amortisation 10.4 4.8 5.3 20.5
EBIT before acquisition effects 7.2 Margin: 2.6 % 27.8 Margin: 19.6 % 36.8 Margin: 26.8% 71.1 Margin: 13.6 %
Depreciation/amortisation from company mergers 5.1 9.8 15.2 30.1
Impairments 0.0 0.0 0.0 0.0
EBIT 2.2 17.9 21.6 41.0
Number of employees 1778 Number of employees 966 Number of employees 898 Number of employees 3642
Paid Media in CHF Free Media and Marketplaces and Tamedia in CHF millions Commercialisation in Ventures in CHF millions CHF millions millions
Page 9 Half-year results 2019 Growth investments in Classifieds negatively affect results In CHF millions
84 2018-6 2018-6 2018-6** 86 53 24 18 1 -1 42 22 29
Revenue EBIT (adj.)* -1 -4 Revenue EBIT (adj.)* Revenue EBIT (adj.)*
EBIT (adj.)* margin: 48.4 per cent EBIT (adj.)* margin: -2.7 per cent EBIT (adj.)* margin: -12.5 per cent Classifieds 2019-6 Marketplaces 2019-6 Services & Ventures 2019-6
Page 10 *Result before effects of company mergers, excluding IC eliminations ** Excluding Zattoo Half-year results 2019 Digital offers: 49% revenue and 81% EBIT share Marketplaces and Ventures / 2018-6 2018-6 2018-6 Commercialisation Publishing Digital 39% Publishing Print 70% 78%
23.2% 37.9% 41.0% 36.6% 7.7% 14.5% 14.7% 61.2% 66.2% 8.9% 14.7% 12.3%
2019-6 2019-6 2019-6 Pro forma revenue share of digital Pro forma EBITDA share of digital Pro forma EBIT share of digital products in per cent products in per cent (adj.)* products in per cent
Page 11 Employee pension costs pursuant to IAS 19 were allocated per segment, based on the headcount *Result before effects of company mergers Half-year results 2019 Complete repayment of credit facility in the first half of 2019 Cash and cash equivalents, 30 June 2018-6 2019: CHF 216.2 million 2019-6 225 -44 -34 +49 119 99 75 65 70 -163 21
-21 -57
-220 Cash flow from (used Cash flow from (used Cash flow from (used Cash flow from (used Change in cash and in) operating activities in) operating activities in) investing activities in) financing activities cash equivalents before financial result and taxes
Cash flow statement for first half 2019 in CHF millions
Page 12 Half-year results 2019 Capex still relatively low, at 2.1 per cent of revenue
In per cent In CHF millions
55 51 10% 50 9% 44 45 8% 40 7% 35 34 6% 30 25 26 5% 25 22 23 21 4% 20 15 14 3% 11 12 11 11 11 11 10 8 7 2% 5 1% 0 0% 2017 2018 2019-6
Investment in property, plant and equipment (Capex)* in CHF millions and as a percentage of revenue Page 13 *Excluding acquisition of holdings and business units Half-year results 2019 Equity ratio up to 73 per cent
9% Current asset 10% 20% Non-current assets 17% Current liabilities 71% Non-current liabilities 73% Equity
687 600 532 482 247 290
Excluding minority 2,262 2,102 2,310 2,070 holdings, the equity ratio is 62 per cent
2018-12 2018-12 2019-6 2019-6 In CHF millions
Page 14 Free Media and Commercialisation
Page 15 WHO WE ARE AND WHAT WE DO GOLDBACH GROUP
• The Goldbach Group is the leading marketer for TV private media in the areas of radio, TV, mobile, print, Online Mobile out-of-home and online media
• As a neutral aggregator of advertising space, we are Radio the connecting link between advertisers and publishers
• Goldbach was taken over by Tamedia in 2018 and from Out of Print 2020 on, it will be a largely autonomous sub-holding Multi Home responsible for the marketing business within Tamedia Screen
Goldbach Group AG 16 MARKETING COMPLETELY UNDER GOLDBACH’S LEADERSHIP ORGANISATION CHART EXECUTIVE COMMITTEE, EFFECTIVE
01.01.2020 Goldbach Group Michi Frank
PA/ FM / Projects Tanja Buhse Strategic Sales & Growth Markets Agencies CH, DACH Stv.CEO Roland Raoul Gerber Wittmann
Neo Dreifive/ Adfactory Advertising Martin Radelfinger Christian Vaglio-Giors
Paid Media 20 Min Goldbach Swiss Goldbach Audience Advertising Advertising Media Radioworld
Thierry Furrer/ Alexander Marco Gasser Ralf Brachat Stefan Wagner Philipp Mankowski Duphorn
Goldbach Group AG ExCo Sales Units Service/ Cross-service Units 17 BUSINESS FIELDS ALONG THE VALUE CHAIN STRUCTURE AS OF 2020
Offline Agency Marketer Shareholder
DACH Creative Agency Media Agency DAS
Digital Agency Cinema OOH TV Radio Online Print etc. Adver- Social, Search, tisers Performance Media Publisher Agency Agency Strategic Sales
Technology Buy - DSP AdExchange Sell - SSP KMU Booking Tool
Goldbach Group AG Goldbach’s business fields 18 MORE THAN 50 PERCENT OF SALES ARE GENERATED BY TV ADVERTISING
SHARE OF SALES GOLDBACH MEDIA TYPES
1% 1% 1% 15% 21% TV 4% Radio Online
5% (D)OOH Mobile Other Ad Sales Marketing Services Print 52%
Goldbach Group AG 19 IT IS ESSENTIAL TO USE STRENGTHS AND OPPORTUNITIES CHANCES AND RISKS OF 360° MARKETING
Strengths Opportunities
• Broad range in Switzerland • Development of cross-media products • Portfolio with well positioned brands • Digital und automated marketing • Exclusive marketing portfolios and long-term partnership • Growth of DOOH, smart TV, mobile, data products, video agreements and content marketing • Excellent customer relations • Market consolidation via acquisitions or joint ventures • National coverage / regional presence • Development of a Swiss Media Network together with Swiss media companies (marketing alliance) SWOT • Changing media products and user behaviour • Margin pressure through dominance of multinational • Merge currently separate units companies • Focus on structurally declining media types • Loss of importance of print in the reader and advertising • Significant dependency on agencies and partners market • Heterogeneity and complexity of the (digital) portfolio • Disintermediation of the value chain dominance of GAFAN (Google, Apple, Facebook, Amazon, Netflix) challenges marketer’s business model Weaknesses Risks
Goldbach Group AG 20 (D)OOH WITHIN GOLDBACH WITH HIGH SALES GROWTH DEVELOPMENT (D)OOH BUSINESS - DACH Goldbach AT Excerpt (D)OOH Portfolio Goldbach CH Goldbach DE NEO Advertising (to be consolidated with Goldbach from 2020 on) + +78,8% 5% 4% weitere 4% 38% 39% 38%
+ weitere 2,1 57% 11% 58% 57% 1,7 79% 18% 56% + others (D)OOH = Digital Out-of-Home (digital outdoor 2018 2019 2020 2021 2022 advertising)
Goldbach Group AG 21 INITIAL DATA PRODUCTS IN A CLASSIC MEDIA TYPE EVENT DATA-BASED RADIO ADVERTISING
TARGETING CUSTOMER STATEMENTS MEDIA MENTIONS
Sports Weather “The increased awareness we achieved with our campaign was evident, among other things, in the significant positive feedback from our customers.” Martin Koncilja, Head of Marketing, Microspot
“With this flexible media mix we reached the Health Transportation target group at exactly the relevant time.” Sacha Zuberbühler, Head of Marketing Communication, Coop
“This flexibility, in combination with the Classic radio is expected to be boosted by so-called significant coverage, make this solution stand “programmatic radio”, with which radio campaigns are out from other advertising products.” aimed at specific target groups based on data. Patrick M. Leimgruber, Head of Marketing CHC, Google Trends Sanofi
“Now it is possible, for the first time, to combine these advantages with a higher relevance of the advertising broadcast.” Julie Garnero, Head of Advertising, Citroën
Goldbach Group AG 22 Big Data Our detailed user data allow us targeted advertising
User data Website 1 Behaviour Publisher Network
Registered users Website 2 Income >11 mn user contacts Subscription data and data Website 3 Interests
Delivery of Website 4 Location targeted advertising
Page 23 DIGITAL ADVERTISING INCREASINGLY DOMINATED BY GLOBAL PLAYERS ONLINE ADVERTISING MARKET IN SWITZERLAND
Online Advertising Market Switzerland Online Publisher Landscape Switzerland (share of total market) Swiss Publishers Global Players 20%
26% Display (incl.
30% performance) 34% 37% Instream 63% 59% Outstream 55% 53% Focus Product 51% Native
18% Coverage 13% 14% 16% 12% 2018 2019 2020 2021 2022 Booking comfort
Data quality Evaluation Addressable Facebook Inventory online advertising market quality Source: PwC Global Media Outlook 2019 - 23 Google 24 Goldbach Group AG DISRUPTIVE USE OF TV IS USED AS A DEVELOPMENT OPPORTUNITY CORE MARKET TV
CHALLENGE IN THE GOLDBACH’S APPROACH ADVANTAGES TV MARKET + Independence allows Investments and focused a fast development of development of the TV new business models The time- business within Goldbach + Enables the delayed use of participation of new television / New organisation forms, partners recording of partners, technologies, + Independent commercial processes and products are development ensures breaks is expedited agility and time to increasing market greatly Possibility of acquisitions in + Set-up based on this segment are under available know-how, review processes and corporate culture
Goldbach Group AG 25 INORGANIC GROWTH AND PROTECTION OF CORE BUSINESS STRATEGIC GOALS UNTIL 2023 Growth targets
Growth of DE/AT via innovations Sign. investments in technology to in the two-digit percentage range reduce dependency
Inorganic increase of the shares of Largest DOOH provider in the relevant media types DACH region
Protection of core business
Optimally integrate T-advertising Data range within own inventory units in the structure with hard user profiles
10% share of sales of Satisfaction / renewal of contracts Programmatic by 2022 with clients
Goldbach Group AG 26 Marketplaces and Ventures Position Tamedia Classifieds & Marketplaces With Classifieds & Marketplaces, we have a unique position in Switzerland
HORIZONTAL & VERTICAL REACH DATA INTERNATIONAL
>48 m >4m >25
visits/month user data nationalities (including transaction data)
Page 28
28 Market growth drivers The market for online marketplaces is very attractive and potential expands along with the business models
Generic drivers for Classifieds & Marketplaces (C&M) growth Total Market Tamedia C&M Current Share (indicative)
Listing AncillaryAncillary IntermediationIntermediation TransactionTransaction Total growth
Transactional models • New advertising formats (Partially) replacing the take items on the • New services such as intermediator (agent/ balance sheet by, for subscription dealer) by introducing example, buying commission-based • Value-based pricing • Advertising/leads properties or cars and models • Penetration of models for adjacent then re-selling them businesses (e.g. Performance models customer base as part At present, financing) allow for the of digitisation transactional models exploitation of this • Seller leads for real are not an option for estate growth driver Tamedia C&M Page 29
29
Market dynamics Of course, the space is not free of risks and competition
Performance models Competition
• On-going pressure from local • General shift to performance competitors can increase at any models (from pay per listing to pay time per click/application/lead etc.) • However, no fully disruptive models • Can hold significant upside, but of local competitors visible for any performance / value needs to be vertical or horizontal; partially rather high all across the inventory short term risks • High risk of downside outweighing • However, strong pressure from upside at this early stage international competitors
Page 30
30 Competitive threat Especially Facebook and Google have become direct competitors in our core business
Competition GAFA players are using their dominant position to branch out into other business models
For generalist models, Facebook • Having become dominant for search, it is represents a clear threat; however, more unclear what Google’s final target is fewer revenues are at stake here in the C&M space compared to our other activities
• For real estate classifieds, it is a relevant risk for private listings • For jobs, Google just launched Google for Jobs in CH; that could be For cars, it is a relevant risk for • possibly disruptive for our business privates (C2C buying groups) but less, at this point in time, for B2C • For cars & real estate, so far, we see no threat
Page 31
31 Our answer Our answer to these competitive threats is focusing on exploiting our key strengths and investing to drive growth
Exploit local strength • Leverage local sales teams and local customer service options • Leverage knowledge of local markets for product development and push market- specific features and tailored implementation • Deepen product functionalities of all verticals and horizontals • Drive synergies (e.g. data) between various verticals and horizontals • Leverage synergies with other business areas in the group (e.g. advertising) • Ensure compliance with local regulations, create "Swiss finish" solution
Willingness to invest in oder to realize further growth Page 32
32 Portfolio Market leader Jobcloud shows a very strong performance and massive untapped potential
• Very strong traffic growth: +27% yoy in DCH and +45% yoy in WCH1 (visits) Entry into temporary white- • Growth in number of ads and collars market views • Core technology for performance models strengthened by strategic investments Entry into pay-per-hire market
Already high penetration of businesses listings
Page 33
331. August Portfolio Delivering high value and building on its strong position, Homegate can realize substantial upsides
• Strong performance on all KPIs, e.g. Moving into transactions − Listings: +16% yoy1 − Visits: +15% yoy1 2 − Leads: +16% yoy Pricing upside as today very low price relative to value delivered
Increase of value-added services
Competition in the private segment by free offers (e.g. Facebook or Tutti)
Page 34
341. August 2. January-August; e-mail Portfolio Launched only in Q2 this year, Car For You already holds a sizeable market share and plenty of potential
• JV with strong partner Axa • Launch in April 2019 Moving into transactions • Already 60k listings (ca. 50% of market) • Positive customer feedback Value-added / adjacent services
Increase of market share with car dealers and increased monetization (currently at very low level)
Increasing customer acquisition cost
Page 35
35 Portfolio Being a defensive shield for the entire Swiss portfolio, Tutti is a very valuable asset
• Strong performance on KPIs, e.g. 1 Expansion of aggregation − New listings: +30% yoy and new product offers − Listers: 17% yoy1 − Sessions: +13% yoy1 • Recently launched real estate Enhanced future value of the defensive shield aggregation, cars to follow Tutti represents - Occupation of generalist space - Traffic & leads generation for verticals (thus reduced dependency on tech giants)
Increasing footprint of Facebook Marketplace and other competitors
Page 36
361. August Portfolio Despite already being the leading generalist in Switzerland, Ricardo still sees untapped growth potential
• Strong performance on KPIs, e.g. − Listers: +26% yoy (July) Further value-added services − Up to 15k trades per day • Focus on its position as THE platform for idle good Further digitalization of growing second-hand • Very rich data market - Total market of on- and offline second- hand is CHF 3.5bn (8% CAGR) - Room to grow: Ricardo is the biggest player holding <15% market share today
Increasing footprint of Facebook Marketplace and other competitors
Page 37
37 Strategy Building on the same foundations of core competencies, we can leverage local strength and expand internationally
C&M Strategy Building on an exceptional position of strength in Switzerland, C&M can leverage extensive reach and user insights to expand the local champion «Local Active position Champion» Investor Strong know-how and capital are allowing C&M to be an attractive and trusted active investor Network Portfolio Mgmt. Synerg. Management abroad, offering growth M&A Deal Flow Op. Know-How development in partnership
Page 38
38 Marketplaces and Ventures Zattoo with strong growth in both B2B and B2C
Zattoo provides solutions and services alongside Zattoo provides B2C customers with TV over the the entire TV & VOD distribution chain to large internet on computers, smartphones, tables, B2B customers: Smart TVs and more:
Available on Profitable >30 Ads 16 customers 3 Mio. Business platforms acquisitions 30% active users in Germany per month Yearly (B2C and subscription B2B) growth in DE and CH
Above average growth in B2B business with Improved market positions in Germany and high-margin SaaS business Switzerland, partially through acquisitions
Revenue growth of 30% (FY 2017 vs. FY 2018)
Page 39 Marketplaces and Ventures Investments into Doodle product starting to pay off
Innovative products used by 200m users… …with willingness to pay for subscription
Doodle Groups Doodle 1:1 & MeetMe Subscription revenue growing 10% each month Your team meeting 1:1s Meetings made easy • US is growing above average and is now Doodle’s largest market in terms of subscriptions • First B2B enterprise customers include a number of Fortune 500 Companies
Monthly Recurring Revenue (MRR) +233 % (vs. Aug 18) +116 % (vs. Aug 18)
US EMEA RoW Doodle Bot & Extensions Schedule within Slack, GCal or Gmail +198 % (vs. Aug 18)
Juli Jan. Nov. Aug. Sept. Okt. Mai Juni Febr. März Apr. Juli Aug. - Dez. ------19 - 18 - - 19 - 19 - 18 19 18 - 19 18 19 - 18 19 19 18
Page 40 Projects and outlook
Page 41 Projects and outlook An agile structure to drive growth
− Establishment of four largely independent business segments: Paid Media, Free Media, Four separate Advertising Marketing and Marketplaces business − Per business segment: dedicated Board of Directors, dedicated management team and own segments income statement − Autonomy and greater responsibility will drive growth
Focus on markets, − Business models, resources and organisations tailored to respective markets partners and − Scope for partnerships customers
− Board of Directors and Group Management will determine ownership strategy and oversee Group specifies the exploitation of economies of scale, e.g. in terms of using data throughout the Group framework and − In future, Publisher and Chairman Pietro Supino will head the Group as part of a holding-like scales while management structure providing − The respective heads of Technology & Ventures and Finance & Human Resources will be support members of the operational management team at Group level Page 42 Projects and outlook Overview of Group Management and business segments
Group Management Publisher and Chairman of the Board Finances & Human Pietro Supino Technology & Ventures Resources Samuel Hügli Sandro Macciacchini CEO Christoph Tonini (until 30 June 2020)
Business segments
Paid Media Free Media Advertising Marketing Marketplaces Marco Boselli Marcel Kohler Michi Frank Christoph Brand Andreas Schaffner
Page 43 The strategy of Tamedia Goal for 2022: we intend to continue growing
1 Continue to stay strong in publishing
2 Expand digital
3 Developing new business areas
Page 44 Page 45 Tamedia: Contacts
Christoph Tonini Sandro Macciacchini Chief Executive Officer Head of Finances and HR [email protected] [email protected] +41 44 248 43 01 D +41 44 248 42 51 D
Page 46 Appendix
Page 47 A LEADING MARKETER IN 36 YEARS IMPORTANT MILESTONES SINCE THE ESTABLISHMENT IN 1983
20Min, NEO and Goldbach together Establishment of Focusing on DACH region and Merger with Radio Z AG Online joining offline Establishment of withdrawal from Eastern Europe Tamedia Goldbach Media Group 1983 1999 2014 2018 2020 2001
1990 2000 / 2002 2010 1993 2019 Expansion into Germany and 2015 Austria 2007 Delisting First advertising The Goldbach Group Minority interest of window in goes public SevenOne and RTL Group Switzerland with RTL in Goldbach Audience
Goldbach Group AG 48 MORE THAN 600 PUBLISHERS IN THE GOLDBACH INVENTORY CURRENT OVERVIEW OF PUBLISHERS
TV Online (D)OOH Radio Print
Germany
+ viele weitere + viele weitere + viele weitere
Austria
+ viele weitere + viele weitere
Switzerland
+ many more + many more + many more + many more + many more
Goldbach Group AG 49 ACTIVE DEVELOPMENT OF CORE MARKET SWITZERLAND MARKET SHARE PER SEGMENT SWITZERLAND Net advertising revenues Switzerland 2018
Other providers Neo Goldbach Tamedia
48% 23%
Market share per per % segment in share Market 20% 17% 12% 6% TV Print Online Online Radio (D)OOH Video Display
Market size per segment in CHF million Goldbach Group AG 50 Synergies & data Based on our exceptional position in Switzerland, we possess very rich data for a broad share of the Swiss market
Synergies and Data
• Today, we are only using data for targeted advertising • The vision: we can predict what users want or need in each of the verticals/horizontals • This will be possible based on the behavioral data gathered from all the other verticals/horizontals • To achieve this vision, we need to grow a A user searches for a stroller on …proactively, Homegate gives “common ground” between the portfolio Tutti/Ricardo… a recommendation for a bigger companies house to accommodate a growing family
For two years we have been investing in creating central service teams for product, tech and marketing. Page 51 Current initiative: central user authentication and messaging
51 Technology From a technology standpoint, we are taking our offers to state of the art
Technology
Ricardo had a 20 years old tech stack when it was bought by Tamedia. Now, the website is totally re-done, the app just re-launched
Car For You has launched with a completely new platform
Homegate will complete its infrastructure rebuilding by the end of 2020 (including critical B2B interface for agents)
JobCloud also made significant tech progress, creating a common back-end for all its platforms
As a rule of thumb, every seven years the tech stack of a platform should be rebuilt. We make sure our products are state of the art and deliver great experiences Page 52
52 The strategy of Tamedia Investments in Switzerland will be prioritised
Business Modell
New No Focus
Existing Focus
Market Switzerland Austria New market Denmark Luxembourg Page 53