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Half-year figures 2017 Media and analyst information Page 2 29 August 2017
Pietro Supino Publisher & Chairman of the Board of Directors Page 3 29 August 2017
Christoph Tonini Chief Executive Officer Page 4 29 August 2017
Results and market environment Strong result despite drop in revenue +35-1 504-6% 475 24 56 55-11 Pension costs pursuant to IAS 19 in CHF millions Normalised result in CHF millions 100 +28% 127 +55% 95 61 56 +37% 77 Revenue EBITDA EBIT Net income Revenue and net income in 2017-6 in CHF millions 2016-6 2017-6 Page 5
Results and market environment Accelerated downturn in the advertising market 5-4% 2014-9% 2015-11% 2016-12% 2017-6 0-5 -10-15 -20 Jan 14 Mar 14 May 14 July 14 Sept 14 Nov 14 Jan 15 Mar 15 May 15 July 15 Sept 15 Nov 15 Jan 16 Mar 16 May 16 July 16 Sept 16 Nov 16 Jan 17 Mar 17 May 17 Year-on-year change in net revenue for print advertising (in per cent) Page 6
Results and market environment Daily newspapers and magazines suffer heavy losses -9% 2016-6 2017-6 167 152-16 136-14% 117-20 -8% 70 64 11 +21% 13 52-26% 39 13-19% 10 14-9% 13 21-15% 18 Daily press I Daily press II/III Regional weekly press Sunday press Financial and business press Consumer press Special press Specialist press Net print advertising revenue in CHF millions compared to the prior-year period Page 7
Half-year results 2017-6 Digital offerings: 37% revenue and 50% EBITDA share 2016-6 2016-6 2016-6 31% 50% 53% Marketplaces and Ventures Publishing Digital Publishing Print 23.2% 24.9% 7.7% 12.2% 41.0% 40.8% 37.9% 37.2% 8.9% 14.7% 8.9% 12.0% 2017-6 2017-6 2017-6 Pro forma revenue share of digital products in per cent Pro forma EBITDA share of digital products in per cent Pro forma EBIT share of digital products in per cent Page 8 Employee pension costs pursuant to IAS 19 were allocated per segment, based on the headcount
Results and market environment Digital offerings sees significant organic growth Paid Media 2016-6 317 2017-6 294-7% 2016-6 320 2017-6 296-7% Free Media 2016-6 71 2017-6 70-1% -23 2016-6 79 2017-6 72-10% -24-1 -8 Marketplaces and Ventures 2016-6 109 2017-6 114 +5% 2016-6 117 2017-6 117 0% Tamedia total +5 2016-6 485 2017-6 468-3% 0 2016-6 504 2017-6 475-6% Organic revenue growth* in CHF millions -16 Consolidated revenue growth in CHF million -29 Page 9 *Pertaining to products that were taken into account in the consolidation covering all six months in both 2016-6 and 2017-6 respectively
New segmentation New segmentation reflects business areas Paid Media Free Media Marketplaces & Ventures All subs newspapers and magazines (including news platforms), as well as gazettes Newspaper printing and service activities All products of the 20 Minuten Group (including news platforms and foreign activities) All consolidated digital Classifieds, Marketplaces and Services All minority holdings in Services and Ventures Advertising Advertising Page 10
Half-year results 2017-6 Marketplaces and Ventures with biggest EBIT contribution 320 296 2016-6 2017-6 EBITDA margin: 12.5% EBIT margin: 7.7% EBITDA margin: 26.4% EBIT margin: 24.3% EBITDA margin: 40.6% EBIT margin: 26.5% 2016-6: 14.7% 2016-6: 8.5% 79 72 2016-6: 23.8% 2016-6: 22.0% 117 117 2016-6: 38.4% 2016-6: 23.4% 47 37 27 23 19 19 18 18 45 48 27 31 Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA EBIT Paid Media in CHF millions Free media in CHF millions Marketplaces and Ventures in CHF millions Page 11
Paid Media Page 12
Paid Media Above-average downturn in the advertising market 320-7% 296 2016-6 2017-6 -21% 47 37 The key points Advertising market declined sharply for supraregional newspapers and consumer magazines Significant growth in digital subscriptions and launch of new digital offerings such as the Day Pass Introduction of one editorial team each for the regional newspapers in Germanspeaking and French-speaking Switzerland respectively Revenue EBITDA Paid Media segment overview in CHF millions Page 13
Paid Media Significant growth in subscriptions for digital offerings Day Pass 16% 29,139 Digital 5% Weekend 25,197 7% 2016-12 Digital+ Digital Digital light 93% 2016-12 2017-6 Print Subscriptions for digital offerings of regional daily newspapers Page 14 Subscriptions for digital offerings of regional daily newspapers compared to subscription circulation as at June 2017
The new organisation The key points Retaining the «Signature» «Tamedia Editorial Office» and «Editorial Services» Exploiting digital growth potential Page 15 Each newspaper will continue to have its own newspaper editorial office that is responsible for «Signature» content and is headed by an editor-in-chief at the existing locations «Signature» in this context refers to the individual positioning, basic alignment, and conceptual design of each publication; the newspaper editorial offices are responsible for the front page and for comments pieces Cross-publication themes pooled into one Tamedia Editorial Office each for Germanspeaking and French-speaking Switzerland respectively Supporting processes (production, layout, images, proofreading) pooled into the respective «Editorial Services» divisions for German-speaking and French-speaking Switzerland The new organisation will safeguard economic and editorial independence and take advantage of digital publishing opportunities Priorities include hyperlocal content, voice and podcast services, data mining, data analytics, increasing the number of digital subscriptions, and expanding moving-images content Our media brands and products have a long tradition, and we want to continue producing Switzerland s best newspapers and news portals
The new organisation Each editorial office still has its own editor-in-chief Paid Media Publication Tages- Anzeiger Sonntags- Zeitung Der Bund Berner Zeitung ZRZ 24 heures Tribune de Genève Le Matin Dimanche Judith Wittwer A. Rutishauser Patrick Feuz Peter Jost B. Geiger C. Ansermoz tbd Pierre Ruetschi Ariane Dayer Tamedia Editorial Office Tamedia Editorial Office for German-speaking Switzerland Michael Marti A. Rutishauser Adrian Zurbriggen Swiss news, foreign affairs, economy, panorama, sport, magazine: culture, science, society, consumer, research desk Tamedia Editorial Office for Romandy Swiss news, foreign affairs, economy, sport, research desk X. Alonso A. Dayer F. Muhieddine Editorial Services Editorial Services for German-speaking Switzerland Simon Bärtschi Stefan Ryser Layout, text production, image editing, photography, proofreading Editorial Services for Frenchspeaking Switzerland (in development) Page 16
Digital growth strategy examples Exploiting growth potential and driving innovation Increase in digital subs Page 17 Movingimage content Hyperlocal content Voice & podcast services Data mining & data analytics Measures: enhanced usability; personalisation of news; new offerings such as the 12 App; improved visibility of paywalls and newsletters; targeted marketing and pricing initiatives Board of Directors has approved growth strategy for video content Current launch of the Horus video app is the first key innovation related to moving-image content Collating and pooling hyperlocal information via digital channels to achieve greater local readership proximity Planned launch of pilot project in 2018 Developing voice and podcast services, e.g. for Amazon Alexa, Apple HomePod or our own digital platforms Continuing to develop data journalism expertise
Free Media Page 18
Free Media Strong result amid ongoing digitalisation 79-10% Revenue 72 2016-6 2017-6 19 0% EBITDA Free Media segment overview in CHF millions 19 The key points Continued high level of profitability despite advertising market downturn Declining print advertising market and deconsolidation of Metroxpress are resulting in lower revenue Growth in digital revenue continues to be significant as a result of new offerings related to targeting, native advertising, and cross-media content Launch of convergent editorial office for Heute and heute.at, and launch of new heute.at app Successful launch of partnership between BT and Metroxpress in Denmark Page 19
Editorial offices 20 minutes & Le Matin 20 minutes & Le Matin bundle their editorial forces Content produced by a joint team Both brands will retain their signature Strong joint position with two popular brands in a highly competitive market in French-speaking part of Switzerland The two brands will further develop their digital activities with joint forces now The existing successful collaboration is to be continued: NewsExpress and Sport Center Co-Editor in Chief Strong leadership team Page 20
Free Media Heute.at has considerable growth potential 20 Minuten in Switzerland L essentiel in Luxembourg BT* and Metroxpress* in Denmark Population Usage Population (in millions) 8.6 Austria 5.4 Germanspeaking CH Number of users per day 33,000 1,500 Page 21 * Published with partner Heute* in Austria Interaction Austria Germanspeaking CH Number of comments per article 300 10 Austria Germanspeaking CH
Page 22 Marketplaces and Ventures
Marketplaces and Ventures Marketplaces and Ventures: biggest EBITDA contribution 117 0% Revenue 117 2016-6 2017-6 45 +6% EBITDA Marketplaces and Ventures segment overview in CHF millions 48 The key points The performance of the JobCloud and homegate.ch platforms translated into improved revenue and net income The marketplace ricardo.ch defended its number one position, posting slightly lower net income not least as a result of investments in the modernisation of the platform The classified advertisement platform tutti.ch further reinforced its leading position and is steadily approaching breakeven Following the Competition Commission s rejection of the merger with a ticketing market competitor, Tamedia will continue to develop the Starticket brand itself Page 23
Marketplaces and Ventures Outstanding positions for classifieds and marketplaces Real estate Jobs Marketplaces General classifieds Car Switzerland s strongest classified and marketplaces portfolio makes a key contribution to the data quality of Tamedia Advertising products Page 24
Marketplaces and Ventures Marketplaces has achieved a turnaround in performance Classifieds 2017-6 In CHF millions Revenue 76 EBITDA 43 EBITDA margin: 56.0 per cent Marketplaces 2017-6 Services & Ventures 2017-6 Revenue 25 EBITDA 0 Revenue 17 EBITDA 2 Investments in tutti.ch Tradono and Trendsales are having a negative impact on Marketplaces EBITDA EBITDA margin: 1.6 per cent EBITDA margin: 13.6 per cent Page 25
Marketplaces and Ventures Homegate achieves impressive revenue growth +11% 2016-6 2017-6 +5% +14% +4% Page 26 Revenue Revenue and EBITDA EBITDA Corporate clients Private clients Broadly based revenue growth due to improvements in the corporate and private clients segment
Marketplaces and Ventures JobCloud undisputed no. 1; hailed for its user-friendliness +7% 2016-6 Revenue Revenue and EBITDA +5% EBITDA 2017-6 In a recent survey, jobs.ch and jobup.ch were the clear winners among job searchers who were asked which portals first came to mind when they were looking for jobs online The JobCloud offering is very popular on account of its user-friendliness and large number of advertisements jobup.ch: new apps are currently in development jobs.ch: optimisation of the jobs platform search function Page 27
Marketplaces and Ventures Continued investment in the online market -6% 2016-6 2017-6 -28% Gradual modernisation of and improvements to the Ricardo website Lower net income due to investment in modernising the platform Significant improvement in client satisfaction Revenue Revenue and EBITDA EBITDA Page 28
Digital Doodle with further revenue and user growth +53% 2016-6 2017-6 +92% Launch of new invite by Mail feature Redesign of Doodle was rolled out in Switzerland in mid-august Around 1.8 million new app installations in one half-year, generating some 24 million additional sessions Significant increase in desktop and mobile advertising revenue Desktop Page impressions Mobile Page 29
Sandro Macciacchini Chief Financial Officer & Human Resources Page 30 29 August 2017
Half-year results 2017-6 New depreciation period having a positive impact on EBIT -6% -14% -5% 28% -30% -1% 55% 475-4 354 7 127 Printing centres change in depreciation and amortisation in CHF millions 15 18 95 Revenue Operating expenses Net income share of associated companies/jvs EBITDA Revenue, EBITDA and EBIT in 2017-6 in CHF millions Depreciation and amortisation Depreciation and amortisation as a result of company mergers EBIT Page 31
Half-year results 2017-6 Extension of expected life cycle of printing facilities 20 Old depreciation/amortisation New depreciation/amortisation 15-7 10 5 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Berne, Lausanne and Zurich printing centres depreciation and amortisation in CHF million Page 32
Half-year results 2017-6 Tax rate of 19.1%; previous period considerably lower due to one-off effects (CHF 5.4 million) 55% n.s. 55% 237% 37% 95 1 95 18 77 11** 66* EBIT Financial result Net income before taxes Income taxes Net income EBIT and net income in 2017-6 in CHF millions Page 33 * Attributable to Tamedia shareholders **Attributable to minority shareholders
Half-year results 2017-6 Net income before taxes includes a one-off effect of CHF 28 million pursuant to IAS 19 77 11 28 6 55 56 66 Adjustment to the Tamedia pension fund conversion rate Net income IAS 19 Tax effects Net income excluding Net income excluding one-off effects one-off effects 2016-6 Adjusted net income in 2017-6 in CHF millions Page 34
Half-year results 2017-6 Further reduction of Ricardo credit facility 107 +17% 124 94 +14% 107 Cash and cash equivalents, 30 June 2017: CHF 74.4 million -106% 2-9% 11-31 -45 Cash flow from (used in) operating activities before financial result and taxes 2016-6 2017-6 Cash flow from (used in) operating activities Cash flow from (used in) investing activities -108-98 Cash flow from (used in) financing activities Change in cash and cash equivalents Cash flow statement for first-half 2017 in CHF millions Page 35
Half-year results 2017-6 Capex still below one per cent In per cent In CHF millions 60 10% 50 40 30 20 10 29 51 34 22 8 11 23 12 11 44 21 25 11 14 7 4 9% 8% 7% 6% 5% 4% 3% 2% 1% 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-6 0% Investment in property, plant and equipment (Capex)* in CHF millions and as a percentage of revenue Page 36 *Excluding acquisition of holdings and business units
Half-year results 2017-6 Equity ratio reaches a high level of 76 per cent 16% 11% 73% Current assets Non-current assets Current liabilities Non-current liabilities Equity 10% 14% 76% 309 390 275 259 336 243 2,112 1,756 2,135 1,815 Excluding minority holdings, the equity ratio is 67 per cent 2016-12 In CHF millions 2016-12 2017-6 2017-6 Page 37
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