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2 John Davis, CFO John Condron, CEO Agenda Financials Introduction Strategic update
Citation preview
H1 08 Interim Resultsfor the six months ended 30 September 2007
6 November 2007
2
Disclaimer
During this presentation we will be discussing Yell’s business outlook and making certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially.
We urge you to read the Risk Factors and cautionary language in the annual report posted on our website.
We also draw your attention to our press release which is posted on our website, for more information on the risks and uncertainties.
3
John Davis, CFO
John Condron, CEO
John Condron, CEO
Agenda
Financials
Introduction
Strategic update
FinancialsJohn Davis CFO
5
Headline results
Adjusted earnings figures stated before exceptional items and amortisation throughout this presentation
Six months ended 30 September 2007 (£m) Actual Growth
Growth at constant
FX Revenue 965.4 13.7% 17.7%Adjusted EBITDA 319.8 18.8% 22.4%Adjusted EBITDA margin 33.1% Operating cash flow 281.6 14.7% 17.3%Cash conversion 88.1%
Adjusted diluted earnings per share 14.6p 5.8%Underlying adjusted diluted earnings per share 15.7p 9.0%
Total dividends per share 6.3p 10.5%
6
Yell UK results
Six months ended 30 September2006£m
2007£m Change
RevenuePrinted directories 297.1 284.0 (4.4%)Yell.com 42.9 65.1 51.7%Other 11.6 13.2 13.8%
Yell UK 351.6 362.3 3.0%
EBITDAPrinted directories 112.5 104.4 (7.2%)Yell.com 15.8 29.4 86.1%Other products & services 5.0 4.1 (18.0%)
Yell UK 133.3 137.9 3.5%Margin 37.9% 38.1%
7
2.43.1
(0.2)
(1.6)(7.5)5
(3.4)
4.1
(0.9)
1.3
Same market Launches Internet Discontinued Acquisitions Growthbefore
rescheduling
Rescheduling Total $ FX Total
Yellow Book USA revenue growth
Contribution to revenue growth (%)
Organic growth 1.9%
8
Yellow Book USA results
Six months ended 30 September2006£m
2007£m Change
RevenuePrinted directories at constant FX 439.0 447.0 1.8%Yellowbook.com at constant FX 16.0 26.8 67.5%
Yellow Book USA at constant FX 455.0 473.8 4.1%Exchange impact - (34.1)
Yellow Book USA 455.0 439.7 (3.4%)
EBITDAYellow Book USA at constant FX 127.8 135.5 6.0%Exchange impact - (9.8)
Yellow Book USA 127.8 125.7 (1.6%)Margin 28.1% 28.6%
9
Yell Publicidad results
Six months ended 30 September2007£m
Yell Publicidad revenue 163.4Underlying Spanish print directories 3.8%Yell Publicidad EBITDA 56.2
Margin 34.4%
Q3 phasing•Directory rescheduling to Q4•Heavy investment
10
124
40320
17
118 117
1
282
21
AdjustedEBITDA
Workingcapital
Capex Operatingcash flow
Cash interest Cash tax Free cashflows beforeexceptionals
Exceptionals Free cashflows
Cash
Group cash conversion 88%
£m
11
Analysis of debt
At 30 September 2007 £mNet loans and other borrowings (3,737.2)Cash 47.7Net debt (3,689.5)
39% $ denominated 38% £ denominated 23% € denominated
c.96% of debt fixed until Dec 2009 falling to c.50% until March 2011
12
Adjusted diluted earnings per share
Six months ended 30 September2006
p2007
pChang
eActual Diluted EPS 7.5 10.7 42.7%Exceptional 3.2 (0.9) Amortisation 3.1 4.8 Adjusted Diluted EPS 13.8 14.6 5.8%Timing of TPI equity placing 0.4 Phasing of profit 0.7 US exchange rate 0.4 Tax phasing 0.2 Underlying Adjusted Diluted EPS 14.4 15.7 9.0%
Note: Exceptionals include a £11.8m credit before tax (£7.4m after tax) – releasing class action accruals and a £0.4m charge relating to a UK tax rate change. Exceptionals for the same period last year comprise £36.3m (£24.9 m after tax) of refinancing costs.
13
Financial summary
Group on track to meet full year expectations
Investing assuming acceleration of growth in FY 09
Online increasingly important driver of growth
Dividends up just ahead of underlying earnings
Confidence looking forward across the Group
Strategic updateJohn CondronCEO
15
Yell UK - win, keep, grow
Total UK live advertisers at 30 Sept– Live advertisers down 1% to 488,000
Yellow Pages and print– Advertisers down 4.7%– Retention stable at 74% – ARPA up 0.3% after rate cut of 3.3%
Yell.com– Advertisers up 14.3%; 33% increase in Yell.com-only
advertisers– Unique users up 8.1% in Sept; up 16% on 12 month average– RASA up 31.5%
16
Yell UK initiatives
Selling under new regulatory settlement for print– RPI-1% = 3.6% average increase in rate cards– Extensive discounting to win, keep and grow
Yell.com– Converting new customers – print and non-print– Continuing monetisation of usage – Investing in usage
17
Yellow Book USA - win, keep, grow
Yellow Book– Advertisers down 4.9% (c 50% rescheduling)– Retention down 1% to 69%– ARPA up 7.1%
Yellowbook.com– Advertisers down 6.2% (pricing more fully) – Unique visitors up 48.1% – RASA up 76.3%
18
Yellow Book USA initiatives
Rate of competitor launches slowing– Down c 25% on first 10 months last year
Print usage still strong Actions to address competition– Sharpened execution– Incentivised salesforce
Continued investment in brand and product – print and online
Diversity of classifications and markets
Yellowbook.com a key focus
19
Yell Publicidad initiatives Back to basics – Products rationalised– Pricing and discounts simplified – Targeting
Synergies and efficiencies– Paper, print, pre-press
Year of transition - investment– Usage– Sales force– Unbundling online– De-risking revenue
20
In summary
Strengthened foundations in all markets
Continued investment in brands and products
Channel-neutral - rapid online growth
Power of sales forces - win, keep and grow
Confidence for the future
Investor Relations: Jill Sherratt +44 (0)118 950 6984
www.yellgroup.com
Yell, Queens Walk, Oxford Road, Reading, Berkshire RG1 7PT
™Trade mark of Yell Limited