Financial Results 2014 – Annual Report

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Financial Results 2014 – Annual Report Annual Report 2014 a392547e94a24133a7a7ca581bb26a4e.indd 1 26.02.2015 13:15:10 Key figures in CHF mn 2014 2013 Change Income statement Revenues 1 114.5 1 069.1 4.2% Operating income before depreciation and amortisation (EBITDA) 230.9 197.1 17.2% Margin 20.7% 18.4% 12.4% Operating income (EBIT) 160.6 127.7 25.8% Margin 14.4% 11.9% 20.6% Net income 159.7 119.1 34.1% Revenue by business division with third parties Print Regional 489.0 462.0 5.8% Print National 354.3 374.1 –5.3% Digital 271.1 232.9 16.4% Balance sheet Current assets 367.9 281.2 30.8% Non-current assets 1 788.2 1 895.4 –5.7% Balance sheet total 2 156.2 2 176.6 –0.9% Liabilities 699.1 773.0 –9.6% Equity 1 457.0 1 403.6 3.8% Financial key data Equity ratio 67.6 64.5 4.8% Return on equity 11.0 8.5 29.2% Employee key data Headcount as of balance sheet date 1 3 417 3 382 1.0% Revenue per employee 2 in CHF 000 321.1 315.0 1.9% Key figures per share Net income per share in CHF 13.81 10.68 29.2% Dividends per share in CHF 4.50 3 4.00 12.5% Dividend yield 4 3.5% 3.7% –4.3% Price/earnings ratio 4 x 9.2 10.1 –9.0% 1 Number of full-time equivalents of continuing operations 2 Based on the average number of employees 3 Proposed appropriation of profit by the Board of Directors 4 Based on year-end price Contents Survey 1 Annual Report 2014 Editorial by the Chairman of the Board of Directors 2 Board of Directors 4 Advisory Board for Digital Development 6 Remarks from the CEO 8 Management Board 10 Organisation Chart 12 Annual Report 2014 13 Operational reporting and market conditions 15 Financial reporting 27 Multi-year comparison 34 Information for investors 35 Tamedia Group 37 Tamedia AG 104 Compensation report 115 Corporate Governance 124 Contacts/Imprint 140 1 Survey Editorial by the Chairman of the Board of Directors A good year on the road to the future Dr. Pietro Supino, Chairman of the Board of Directors Ladies and Gentlemen 2014 ranks among the best years in Tamedia’s 120-year history. Our consistently positive development in challenging times is something about which we can be proud and pleased and is even more important than the good results we report. Technological progress and globalisation are the drivers of the change our industry is undergoing. The consequences are a continuous growth of media offerings and a fierce competition for talent, attractive media content and the limited time that users can devote to media. This is accompanied by increasing cost pressure, which is a reality for the entire economy and is set to be exacerbated further by the strength of the Swiss franc. The structural change away from print and towards digital media has led to a fragmentation of the products we offer, namely, in the area of classified advertisement that has been of historical importance for our com- pany. They are virtually detached from the printed newspaper and today constitute independent fields of business on the Internet. Newspapers, for their part, are finding themselves faced by increasing demands in terms of journalistic content and by the need to develop attractive offerings for digital distribution channels. There is also a trend towards disintermediation in the reader, user and advertising markets. More and more contacts take place outside of the traditional media system, with the consequence that the structure of the public sphere as a marketplace for information, opinions and commercial offerings is changing. This analysis is not new. It is confirmed by current developments, but the dynamic of these changes is accelerating. At least, we are active in highly attractive markets in the area around Lake Geneva, in the agglomerations of Bern and Zurich as well as in Denmark and Luxembourg, which are fortunate circum- stances that make our work easier. The responses to the above challenges are not new either because in essence we are confronted by the phe- nomenon of industrialisation as other businesses have been before us. The continuous professionalisation of our trade and constantly rising productivity are prerequisites that we must meet if we are to remain efficient and retain our capacity to invest in the future. We have long been investing in the quality of our publications and the related commercial offerings. The success of these endeavours is best testified by our readers: In 2014, we published for the first time the biggest daily, Sunday and commuter newspapers both in German-speaking and French-speaking Switzerland with 20 Minuten, Tages-Anzeiger, SonntagsZeitung, Le Matin Dimanche, 20 minutes and 24 heures. All the newspapers and 2 magazines of our media group benefit from the resulting economies of scale. One further pleasing fact that shows our group’s journalistic strength is that we were able to appoint all the new editors-in-chief of Bilan, Bund, Landbote and Le Matin from within our own ranks in 2014. While investments in current business ensure its success, the creation of new activities and diversification of our portfolio would not at all be possible without making substantial investments. Thanks to the successful digitalisation of our traditional business and to major investments in our Digital business division, last year, we already reached the goal of one third of our net income being contributed by digital business, which we had announced in 2013. In 2014, we made considerable efforts to fulfil our next goal of having digital businesses account for half of our net income. Firstly, we launched a public takeover bid for PubliGroupe, with the focus of our interest being its holding in the directories business local.ch. We subsequently withdrew from the ensuing bidding competition with a capital gain of some 20 million francs, and made plans with Swisscom to merge local.ch, which it now fully owns, with our search.ch directories business. We will hold 31 per cent of the new company. This partnership is subject to the approval of the Federal Competition Commission. We are confident of a positive outcome because this is the only way to create a powerful Swiss alternative to the competition for listings which is operating at a global level, namely Google. Secondly, at the beginning of this year we announced the acquisition of the auction platform ricardo.ch, comprising autoricardo.ch, the general classified portal OLX and ricardoshops. ch. This transaction is also subject to the approval of the Federal Competition Commission. While we are entering a new field of business with ricardo.ch, the combination of car4you.ch and autoricardo.ch enables us to create an alternative to market leader autoscout24.ch, and the merger of the two loss-making general classified platforms tutti.ch and OLX should enable us to establish a sustainable offering. The expansion of the digital business is important to ensure the sustainability of our group in times of structural change. The reason why the digitalisation of our business is at the heart of our ambitions is not only because we view technological progress as the driver of the challenges we are having to face, but because we are attempting to put it at our service. It enables us to deliver the required efficiency and to create new qualities across all areas, not least in publishing, ranging from data journalism and new forms of narrative to personalised services and the transformation of business relationships with our subscribers and advertising customers. Alongside investments in new offerings, the training of our staff is of crucial importance. For this reason, we are investing in the promotion of talented individuals, information on which this year’s annual report aims to provide. Despite the many changes it is undergoing the value proposition of the activities bundled under the umbrella of Tamedia Group continues to be the provision of information, oversight and guidance on the basis of professional journalism, services and platforms for advertisements. Irrespective of the various challenges we are facing in different areas of our business, we have good reason to be pleased that they are all in very good shape. Our Management Board under the excellent leadership of Christoph Tonini and our staff all merit our recognition and thanks for this. Finally, I would like to extend a special thank you to our shareholders for their trust, commitment and confidence. They give our company a stable base, allowing us to perform dynamically in times of change. Dr. Pietro Supino Chairman of the Board of Directors 3 Board of Directors Pietro Supino Claudia Coninx-Kaczynski Martin Kall Pietro Supino, Chairman of the Board of Directors, Chairman of the Journalism Committee, Chairman of the Nomination and Compensation Committee, Chairman of the Business Development Committee and Chairman of the Advisory Board for Digital Development Dr. Pietro Supino (CH/I/1965) has been Chairman and publisher since May 2007. He was elected to the Board of Directors of Tamedia in 1991. Between 1989 and 1998 Pietro Supino gained experience as a lawyer and in business consultancy before founding a private bank with partners in Zurich. He is currently also Chairman of 20 Minuten AG, Espace Media AG, Tamedia Publications romandes SA, Finanz und Wirtschaft AG and Zürcher Regionalzeitungen AG. He is also Vice Chairman of Edita SA in Luxembourg, Member of the Board of Directors of the Swiss news agency Schweizerische Depeschenagentur AG, Vice Chairman of the Board of the Swiss Media Association and a member of the Board of Trustees of the Orpheum Foundation for the Advancement of Young Soloists and of the Foundation for Constructive, Concrete and Conceptual Art in Zurich.
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