1.Investors Day 2011 yZurich, 1 December 20111

2. Overview presentation orderThemeSpeakerTime (in mins)Groupp Intro / Welcome / Strategic OverviewgH.P. Rohner20Media Sales Positioning Publicitas for the futureB. Roeschlin & P. Bni 40 Q&A Group / Media Sales Presentations: AdMarket / Augmented Reality A. Gedenk / M. Pittner 20Break 30 g All segments Strengthening digital growth across the Group gg g g p Digital and mobile growth with local.ch E. Baehler 20 Portfolio DMS with special focus on Zanox R. Martignoni20 Q&A Search / Find & DMS20 GroupSolid balance sheet secures strategic freedomA. Schmidt 30Concluding remarks H.P. Rohner15Q&A 20Total approx. 4 hrs2 3. OVERVIEW KEY DECISIONSHans-Peter RohnerHP t R hCEO & Chairman of the Board3 4. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardKey decisions on Group levelPubliGroupe continues to operate in 3segments with key brands local chlocal.ch,Publicitas, ZanoxRepositioning and further developmentof Publicitas with new governancestructurestr ct reSale of majority of real estate portfolio;proceeds to be mainly distributed toSearch & FindMedia SalesDigital & MarketingServicesshareholdersSegment switch from IFRS to Swiss Search & FindMedia Sales is the DMS bringsGAAP FER in 2012 in order to better produces and sells preferred partnertogether a portfolioshow the real performance of our digitalmedia products for media owners of leading inter-assetsfacilitating the and advertisersnational marketingsearch for persons persons,worldwide, selling orld ide and technolog technologyPubliGroupe to move on with solid companies, media usingservice companiesbalance sheet and bank-independentproducts and effectiveinvestment capacity of >CHF 100 mio services advertising solutionsEnd f doubleE d of d bl mandate Ch id t Chairman/CEO/CEOas of General Assembly 20124 5. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardKey decisions on segment levelMedia Sales with a new set ofimportant measures and initiativesto monetize customer relations,streamlining processes andboosting digital and online-business. Dedicated boardcommittee to support and facilitateimplementation under leadershipof CEO Beat Roeschlin.Search & Find to further developand dynamise local.ch as acornerstone of Group strategy.Continued partnership withSwisscom and one successfulorganization under the leadershipof CEO Edi Bhler.DMS to focus on successfulmanagement of key participations(Zanox and Namics); furtherdeveloping strategic initiatives andpreparing M&A opportunitiesZanox Group subsidiaries; note: Digital Window is the holding company for Affiliate Window and buy.atwithin the defined strategy.5 6. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardA group well positioned for the futureGlobal presence with about 2,200 employeesAllocation of staff by segment (in %) Geographical distribution (in %)Media Sales 55.5%Switzerland73.5%Search & Find 22.9%Europe 15.0%Digital & Marketing Services18.0%Americas 2.5%Corporate and others3.6% Asia/Pacific9.0%The group has more than 400,000 customers: Private persons SME National advertisers International brandsThe group cooperates with: Well-known media companies Digital media owners Different types of websitesMSN6 7. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forward along marketing value chain, Marketing. More. Effective Customer AwarenessCustomer Acquisition Customer Retention Focus of service Client typology Attention Search Desire & Evalua-Pur-Loyality ConsultingSME & Interest& Find Inten- tion chaseSales Nationaltion Development GlobalSearch & FindLocal.ch SalesLocal.fr SalesHome.chSalesMedia SalesPublicitas Consulting & SalesgAdnative Consulting & SalesPublimedia Consulting & SalesDigital & Marketing ServicesNamics Development & ConsultingInstanzDevelopment & ConsultingSVBmedia ConsultingZanox (DigitalWindown, Buy.at) Sales (enabled through platform)eProfessionalConsultingCorporate & othersDenonDevelopment & Consulting 7 8. Part Hans-Peter Rohner I Final remarksConclusion & outlookSwitzerland HQ in Lausanne Americas EuropeAsia/ Pacific Canada AustriaBelgiumFranceAustralia China Japan USAGermanyGreece Italy MalaysiaSingapore TaiwanNetherlandsSpainUKThailandIndiaSwitzerlandWho are we today: Who we want to be tomorrow:A company in a business transformation situation thatA more compact company that is fully geared towardscontinues to be marked by significant changes in the media making marketing processes more efficient (ROI) forand marketing/advertising environment. marketers and advertisers.A company with print still being the main volume A company where online sales and profits willcontributor, albeit with the digital business growing in become even more important and make up moreimportance.than half of total business (incl. participations).A company that still largely thinks and operates like aA company with a digital corporate culture, applyingincumbent player with a culture that is strongly affected by innovative participation models.its 121 year history.8 9. MEDIA SALESLeaner. More flexible. More profitable.pBeat RoeschlinCEO of Media Sales9 10. PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development10 11. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsStrategic premises and key decisions going forward Leaner, more flexible, more profitable Accelerated shift towards digital New set of optimisation measures: - in Switzerland - in international markets - in headquarters (central costs) Enrichment of print offerings Further investments in digital market The Board of Directors of PubliGroupe establishes a dedicated strategic committee11 12. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development12 13. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsChallenging advertising market environment Traditional advertising spend1 vs. Real GDP (CH)Erratic advertising 10% market in recent years 5%5% 4% 5% 3% 3%2% Print dropped from CHF 4%4% 3% 1%2.5 bn. to CHF 2 bn 0% (2004-2010)-1% -3%3% -2% -5% Advertisers shift from-10% print to onlineCH real GDP growth-15% Trend likely to continueCH traditional media spend growth-15%-20%2004 2005 2006 20072008 2009 2010Note: 1) Traditional media includes: Print; Electronic; Out-of-home. It excludes online and direct advertisingSource: SECO historical data & Fall 2011 fS hi t i l d t F ll forecast; Stift t Stiftung W b t ti tik S h i PWCWerbestatistik Schweiz;13 14. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsSwiss advertising has continuously shifted from print to online In response to the crisis and market consolidation MS has taken reactive measures Swiss advertising market 2007 2010CAGRCHF m 1Cost base reductionTotal- 1.3% 4,3624,410 4,197 4 197 10%13% 3,883 Digital+ 22.0%3% 2% 19% 13%17%13% 2%Radio- 2.6% 3% 2New business model 16%14% 15%16%TV + 1.9%1% 1%16% 15%1%1% - 2.9%Out of Home3More customer oriented 57%55%business set-upCinema- 11.3%49%48%Print- 7.0%4New digital unit 2007 200820092010Source: Media S l and external analysisS M di Sales d t ll i14 15. Part Beat Roeschlin I MS in the past four years I Plans for the next four years CostCosts decreased to adjust to lower volumes1decrease MS achieved 114m CHF savings to redress EBIT along 3 axisCAGR 2,200 1,966venue 1,736 1,800I Downsizing of FTE resources 1,296 1 296Rev 1,400 1,174- 15.8%1,000 CHF M293.7 300271.7Expenses s230.1 250 - 469 FTE (-13.9% p.a.)179.7 Resizing local and regional 200114 m CHF cum. savings II- 15.1% branch offices CHF M 150 20 13.00.50EBIT-29 0 29.0 -29.0 29.0E 20-20 ReducingR d i central costs lik t l t like IIImanagement, services, etc. -40 CHF M20072008 2009 2010Source: P bliGS PubliGroupe published results; M di S l i tbli h d lt Media Sales internal d tl data15 16. Part Beat Roeschlin I MS in the past four years I Plans for the next four years BusinessNew business model to respond to new market reality2 model Move from exclusive contract logic to establishing non-exclusive sales logic Print contract type breakdown 2007 2010Media Sales pricing scheme - old & new Media SalesP Price61% 42%(CHF)1Minimum transaction fee covering market share the cost of order processing2Degressive sales commission22% +19pts 41%Non-exclusivePortfolio salescontracts 278%-19pts 59%1New model Exclusive contracts Old model d l0 100 200 300400 Ad500price20072010 (CHF) While many larger publishers have built their own Modular, transaction-based model, different servicesales force, Media Sales still owns a 42% share levels and full transparency with a portfolio logicNote: Direct sales are sales lost to publishers own sales force publishersSource: Media Sales internal data16 17. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsStrong exclusive mandates and key cooperationagreements Publishers (selection) | Exclusive mandate Publishers (selection) | Cooperation agreements17 18. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsOrgani-Digital transversal unit and customer segmentation3 sationto better serve market needsNew organisation relaying innovation and processes across units and to clients PUBLICITAS CHP INTLP DIGITAL Advertisers/Advertisers/AdvertisersPublishers PublishersPublishers SmallLocal &National Exclusive Trans-All Enterprise RegionalAccounts &accounts nationalsegments & SMEsAgenciesaccountsClient segmentsPrivate Dedicated Sales Portfolio Sales PublimediaPublicitas Digital EBIT contributorsMS unitsSales unitsSupporting transversal unitsSource: Media S l i tS M di Sales internal d tl data18 19. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsCreation of a dedicated digital unit 4 Digital Digital turnover 2007 - 2010 Towards a more digitally driven company CHF mCAGRCreation of Publicitas Digital Publicitas CH 1)50 46.0- Development of proprietary digital products45+ 15.7% 39.5 - Training, new sales iT i i l incentives, di it l hi ti digital hires40 35.735New Publimedia 29.830.230- Launch of an integrated Ad Market platform+ 36.1% P 23.5 - Integration of Web2com2 into Publimedia25 19.717.82015 16.0 16 016.0 16 015.8 15 8 - 3.7% Hired digital sales expertslicitas Intl.10 12.0 5 Setup of integrated tools and systems 0 across all offices 20072008 20092010 Publ Transfer of digital best practices across geographies MS TotalP International Publicitas CHNote: DigitalN t 1) Di it l campaign b ki and management platform suite 2) I 2009 and 2010 W b2i booking d t l tf it In d 2010, Web2com was consolidated within th DMS segmentlid t d ithi thet19 20. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development20 21. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsOutlook: traditional segment to stabilise according to analysts Swiss advertising market prevision | 2011 2015CAGR CHF m Markets currently addressedTotal+ 2.8%4,864by Media Sales 2015 (CHF m) 4,348 Digital + 9.2% 24%19%1,986 28 2,0144% Radio + 1.6% 4% Print Cinema 14%15%+ 2 1% 2.1% TV16%16%1% 1%Out-of-Home + 2.7%Objective 2015 + 3.9% Defend print market share at Cinema45%41%40% level Print + 0.3%- considering current portfolio - E2011E2015External analysts market viewNote: Cinema market share i 100% and not i l d d i thi graphN t 1) Ci k t h is d t included in thish21 22. Part Beat Roeschlin I MS in the past four years I Plans for the next four years... But Media Sales plans with more conservative forecast fortraditional mediaTraditional advertising* spend vs. Real GDP (CH)Swiss ad market and10%Analysts view economy strongly 5.4% correlated (>0.95) 4.5%4.3% 5% 2.9% 3.2% 2.5%2.6% 2.1%Strong uncertainty g y 2.7% 2 7%3.6%3.6% 0.9% 1.4%1.9%about Switzerlands 0%economy -0.5% -2.6% -1.9% -5%Media Sales mgmtconsiders moreconservative forecast -10%CH real GDP growth CH traditional media spend growthCorrelation based Lower cost structureprevision (GDP & -15% needed according toad spend) -15.3% Publicitas view more conservative -20% scenarioi 200420052006 2007200820092010 E2011 E2012Note: 1) Traditional media includes: Print; Electronic; Out-of-home. It excludes online and direct advertisingSource: SECO historical data & Fall 2011 fS hi t i l d t F ll forecast; Stift t Stiftung W b t ti tik S h i PWCWerbestatistik Schweiz;22 23. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsGrowing digital segmentsSwiss advertising advertising prevision | 2011 2015CAGRMarkets currently addressed byCHF mMedia Sales1,160Total + 9.2%2015 (CHF m)5%6% Mobile Internet + 32.2% 206 264 4708%816Online & Mobile TV+ 25.3% Classifieds Display 23% 5% Directories+ 19 6% 119.6%20% Objective 2015 18%20%Display + 12.8% Increase digital market share from6% today to 20% Classifieds + 5.7% - display & classified; possibly entering48%40% mobile internet and other digital growth + 4.4% markets in the future - Search E2011E2015Note: 1) PubliGroupes Local.ch asset will capture growth in the online directories segment / 2 Display and classified addressable market onlySource: P bli it analysisSPublicitas l i23 24. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsOffline and online advertising formats converge Budget decisions to be increasingly taken on a more g gy informed basis, both online and offline Data is king Advertising market experiences a continued shift of power from publishers towards advertisers Digital advertising replacing or complementing traditional Digital g offline media through new technology becomes Advertising becomes therefore more efficient across all ubiquitousmedia categories (Augmented reality/smart ads; digital signage) The audience is increasingly building its own personalised Advertising media experience through connected platforms becomes Advertisers are going to engage in a more personal personalrelationship with their audience24 25. Executive Summary PART 1 | Market and Media Sales development 2007 - 2010 PART 2 | M k t and Media Sales development 2011 - 2015Market d M di S l d l t 2.1 | Market development 2.2 | Media Sales development25 26. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsMeasures taken along two pillars: strengthen the traditionalbusiness and accelerate growth of digital activities1st PILLAROptimisation measures being launched: pg Become yet leaner and more adapted to Leaner and STRENGTHENmarket the traditional more flexible print businesscost Intervention and enrichment of print offeringsstructure along three areas: Switzerland, international, central functions2nd PILLARGrow digital footprint: ACCELERATEFurther invest in digital initiatives the digital Higher share agendaDevelop new digital products to drive growthof digital & explore newpturnover opportunities 26 27. Part Beat Roeschlin I MS in the past four years I Plans for the next four years 1st PILLARThree areas of improvement have been identified Improvement Expected EBIT-effect Related Projects 2015areasProcess harmonisation SwissCentralisation of sales back-office function1CHF 9 11 m business Improvement of sales efficiency while maintaininglocal presence InternationalDivestiture and restructuring of low performing units2 CHF 4 6 m business Reduction of regional headquarters / legal entitiesCentralisation and optimisation of support & admin3Central cost functions/processes CHF 5 7 mConsolidation and optimisation of IT infrastructure pTotalCHF 18 24 m27 28. Part Beat Roeschlin I MS in the past four years I Plans for the next four years1st PILLARExpected CHF 18-24 m EBIT improvement by 2015;large effect in 2012 Incremental EBIT effect vs 2011CHF m18 - 2417 - 2314 - 205-74-6 3Central cost2-46 - 123-54- 6 4-6 EBIT effect 0-2 2International Business0-26-89 - 11 9 - 119 - 111Swiss Business2012 2013 20142015 FTE CH~100 FTE reductionTotal FTE reductionanticipated by 2015: ~200 INTL~100 FTE Restructuring cost 15 - 20m CHF Investments5 10m CHF28 29. Part Beat Roeschlin I MS in the past four years I Plans for the next four years2nd PILLARGrowth with performing digital products Digital products portfolio Development to 2015Booking platform for display (CH) Develop exclusive inventory and new offers Display Ad4Quality ad4quality Sales window for pools and otherLaunch rich media offersproductsEnable online display sales in every branch p y y ormancePremium CH performance ad network Ad4max Mobile (1H 2012) - 1st mover in CHLeader in CH with 1.5 bn imp./yearDevelop local and regional advertising markets Perfo(on premium segment)Launch overseas licensing / extensions Digital OOH 2Build a coalition of adscreen providersOn-the-move ad sc ee network O t e o e ad-screen et o ODevelop network to have local/regional flexibilityReach 3 million passengers per weekDevelop a powerful national adscreen footprint Further develop i F th dl inventory ( i t & online)t(printli )Online Ad market (information,+ planning, booking, reporting)Establish dynamic offering (eg. last minute deals) Incorporate mobile offeringsNote: QOD=QualityN t 1) QOD Q lit on Di lDisplay; 2) OHH O t f HOHH=Out-of-Home 29 30. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsPrint decreases in 2012, stabilises in 2013 and onwards;digital to grow steadily Media Sales print and online gross margin development | 2011 2015 Print will decrease CHF m due to structural 115 shift and continued 110Media S lM di Sales CHtrend from exclusive 105print business mandates towards 100 portfolio sales 95 20 Illustrative expected trendDigital to grow at15Portfolio dP tf li and newleast in line with thedigital products and10services market 5-2011 20122013 2014 201530 31. Part Beat Roeschlin I MS in the past four years I Plans for the next four yearsConclusion & key take-aways Media Sales / Publicitas to become leaner, more flexible, more profitable Optimisation measures along three intervention areas: Switzerland, international and central functions Expected CHF 18-24 m EBIT improvement by 2015 from cost reduction Growth with performing digital products and through enrichment of print offerings with potential EBIT upside Board of Directors of PubliGroupe establishes dedicated strategic committee headed by Pascal Bni, to support transformation and management team.31 32. Closing remarks g Pascal Bni Member of the Board PubliGroupe & Head of Steering Committee Publicitas32 33. Part Pascal Bni I Mission & role of the steering committeePublicitas: re-positioning a market leader in turbulent timesRole of the steering committee ChangingPlay Pl new role i a revised value chain with i l ini d lh i ith increased competitiond titi IndustryEconomic realities (industry concentration & consolidation, downturn etc) Logic ask for evolutionary but also revolutionary steps From intermediary logic (print) to direct booking industry logic ( y g (p )g y g (online)) From cost-Shift from cost cutting to service provisioning under the leadership ofcost-cutting cutting toBeat Roeschlin efficient & Assure outside-in rather than inside-out perspective professional servicesEncourage and ask for increased speed of implementation and time to market within P bli it k t ithi Publicitas BoD Proactive interface to the BoD of PubliGroupe involvement Accelerate decision making related to operational top priorities Improve digital & online-footprint & encourage higher rate and speed of innovation 33 34. Part Pascal Bni I Mission & role of the steering committeeKey Positioning Questions to be addressedRole of the steering committee Service Development of our off- and online workflows and tools D l t fff d li kfl d t l Offering to Enrichment of our service offering (such as RTB, AdMarket, dynamic our Clients pricing, integration and combination of digitally enriched content, ie QR codes, into our value chain etc.) Ease of use of Publicitas - interfaces Group Management of growth potential across the Group Structure and Print focus vs. enlargement of services into digital & online OrganizationalEvaluate meaningfulness of shared resources (Finance, IT, HR etc.) in Integration view of business specific needs and time to market considerations PublicitasStrategy review related to the international network International Network leverage & service-related synergies International network leadership 34 35. Part Pascal Bni I Mission & role of the steering committeeNext StepsRole f the t iR l of th steering committee ittForm Steering Committee under th l d hi of P St i C itt d the leadership f Pascal B i l Bni Committee size 3 max. 4 Part of Group BoD and ultimate decision making body = BoDTiming Committee composition finalized by 31 Dec 2011 Start of committee work January 2, 2012Expectations Communication on committee composition by year end 2011 First results related to Group management structure & organizational integration Q1 Increased pace related to all key Publicitas challenges35 36. Q&A SECTION GROUP & MEDIA SALES36 37. Presentation of P bli di &P t tif PublimediaAdMarket family.1st of December 2011 Andreas Gedenk, CEO I Publimedia AG 2011 38. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyHighlights & Milestones. Relaunch new Publimedia: 1st Mai 2011 Merger of Publicitas Publimedia and web2com Focus: Print & Online (all categories) Dedicated to large national advertisers and their agencies Launch AdMarket family: 12th October 2011 AdStore, AdPlanning, AdCampaign, AdReporting Focus: efficiency and create value 39. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyPosition & Claim. Publimedia is the key account unit of PubliGroupe and Publicitas Main Partner: Advertiser, agencies & publishers open media services positions Publimedia as a service provider Open media: Print & online (all categories) Services:Media, marketing, special & network 40. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyOverview.MediaMarketingSpecialNetwork ServiceService ServiceService AdMarket Analysis Consulting Cross-AdStoreControllingConceptBusinessAdPlanning Touch PointCreation PG offersAdCampaign ProductionAdReporting PrintMobile Display Di lAffiliate Affili tSocial Media ad4maxSEM SmartAds Performance Lead 41. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyOverview.MediaMarketingSpecialNetwork ServiceService ServiceService AdMarket Analysis Consulting Cross-AdStoreControllingConceptBusinessAdPlanning Touch PointCreation PG offersAdCampaign ProductionAdReporting PrintMobile Display Di lAffiliate Affili tSocial Media ad4maxSEM SmartAds Performance Lead 42. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdMarket goal. Create and develop the most efficient and dynamic marketplace in Switzerland Combine print & online (all categories) coherently Attractive price & content specials Strenghten this with a combination of performing & powerful tools 43. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdMarket family.Free (Print / Online / Mobile / Tablet)Access Price- & Content Specials, RatecardsPaidArea - Analysis - Controlling - Calculation - Planning- Booking- Reporting 44. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdStore. 45. Part Andreas Gedenk I Presentation Publimedia & AdMarket family 46. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdPlanning. 47. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCoverage of media. Print 62% Cinema Internet, Mobile, Tablet T bl t 48. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCinema-trailer - as of January 2012. Choice of the movie Choice of the week Insights ofthe trailer 49. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyTransfer to adcampaign.1. Planning2. Calculation3.3 Booking 50. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdCampaign. 51. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyConflict control. 52. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyAdReporting. 53. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyCampaign overview. 54. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyPerformance overview. 55. Part Andreas Gedenk I Presentation Publimedia & AdMarket familySummary of the admarket family. Integration of the full range of data Individual presentation Free accessof data Print, Online, Mobile,& Tablet-Ratecards PiPrice- & Content- C t tSpecials Added value Unique W b based Web bd Coverage 62% Conflict control Cinema-Trailer 56. Part Andreas Gedenk I Presentation Publimedia & AdMarket familyThank you for your attention.y y 57. Augmented Reality in MediaShort introductionMarc OlivierMarc-Olivier PittnerZrich, December 1st 201259 58. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBenefits for Advertisers Show videos and other dynamic content Drive the potential customer to an opt-in mechanism p p Drive the customer to a web shop or a physical outlet Engage with customers thru social networks Tracking of customer actions and data analysis60 59. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBenefits for Publishers Transfer traffic from paper to digital Bring interactivity to the paper g yp p Tracking of user actions and data analysis Measure qualitative return for advertisers Be more innovative than competitors Drive more advertising income61 60. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaSome history62 61. Part Marc-Olivier Pittner I Demonstration Publimedia & Augmented Reality in MediaBasic technologyImage recognition leads to specific ActionInstant image recognition using the phone s cameraphonesThe technology can be integrated in any 3rd p y App (SDK)gyg y party pp ()After image recognition different actions are possibleActions can be linked to the users geographic locationActions can be built based on existing internet web services 63 62. Demo Movie64 63. SEARCH & FIND / M h kMatchmakerFurther developing lF th d l i local.ch online revenue andl h li dincreasingly establish mobile offeringEdi BhlerCEO local.ch65 64. Part Edi Bhler I Market Analysis I Plans for the futureSMEs marketing and communication needsLeadPay-per-performance models SEM generation(quotations)Emerging modelsUser generated content Strong growthCRM Groupon likeEditorial contentMeasurable ROIUser`s knowledge (Direct marketing) models Vertical BookingTraditionalportals"Search & SMEs Advertising needsFind" and (marketing & communication) Online contentOffline contentonline (flyers, posters)(website, video)marketing Local mediaClassified(press,radio, outdoor) Online Events, Classical media. Directories exhibition Poor growth.Print Directories shows Not performance-based Communication and offline medias 66 65. Part Edi Bhler I Market Analysis I Plans for the futureMarkets adjacent to classical search & find veryfragmentedTotal Swiss local advertising market Zoom on Online Business models (excl. online press)CHF m, 2010 , CHF m, 2010,62585 260 90890110 100 290110100 290gate24.chOthers 1415Others80Others 320search.chOthers 4516 Booking 3 CCO 19 Groupon 10Couponing Deindeal 15Google Others 20516Renovero 14LeadGeneration Blick 140 SC Directories110 MaturityPG exc. local 10Website creation & contentNZZ 190120Energy 10OnlineAPG 52 Local.ch Local ch content 54PG exc. local 10 VariousSF1, SF2, Sat1, ProSieben 15immoscout24.ch 10Goldbach Minuten etc. 24020jobscout24.ch 10Media 25 swissfriends.ch 10 ClassifiedsVarious Goldbach media 30homegate.ch 20gPress Online Direct TV, radio, Printed Search & Marketing1outdoor(Print&Online)DirectoriesFindSource : Publisuisse Mediaguide, Swisscom, OC&C analysisLocal.chTamediaRingiergPubligroupegOther1. We assumed that half of the Direct Marketing is local2. Website creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it in a given year, average annual spend: CHF 3.500;3. Emerging segment in 2010, estimated at CHF 1m67 66. Part Edi Bhler I Market Analysis I Plans for the futureActive matchmaking & expansion to lead generation to be found to be chosen to sellcustomers t perspective MATCHMAKERusers perspective to findto chooseto buy68 67. Part Edi Bhler I Market Analysis I Plans for the futureMarkets with distinct growth potentialTotal Swiss local advertising marketZoom on Online Business models (excl. online press)CHF m, 2010 CHF m, 201062585 260 90890110 100 290110100290 gate24.chOthers 14 15 Others 80 Others 320 search.ch Others 4516 Booking 3CCO 19 Groupon 10 p -5% to -15% Couponing C i Deindeal 15Google +30% toOthers 205 16 Renovero 14Lead +20%Generation Blick 140 SC Directories-20% to -20% to 110Maturity -10% PG exc. local-10% 10 Website creation & contentNZZ 190 +10% to120 Energy 10+20%OnlineAPG 52 Local.chcontent 54+10% toPG exc. local 10 Various+20%SF1, SF2 Sat1G ldb 20 Minuten etc. 240SF1 SF2, Sat1, ProSieben 15immoscout24.ch immoscout24 ch 10 Goldbachh jobscout24.ch 10 Media 25 swissfriends.ch 10 ClassifiedsVarious Goldbach media 30 homegate.ch 20 PressOnline Direct TV, radio,Printed Search & Marketing1outdoor (Print&Online)Directories Find Local.ch Tamedia RingierPubligroupeOther Source : Publisuisse Mediaguide, Swisscom, OC&C analysis1. We assumed that half of the Direct Marketing is local2.2 Website creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it in a given year, average annual spend: CHF 3.500; oneyear3 500;3. Emerging segment in 2010, estimated at CHF 1m69 68. Part Edi Bhler I Market Analysis I Plans for the futureKey drivers for successful matchmaking strategyimplementationLeader in audienceStrong monetization engine gg ContentProduct optimisationPrint, Online, Mobile Local Editorial Content User Generated Content Diversification to newbusiness models Managed audience Print, Online, MobileSales power & efficiency: Multichannel Brand strength CRM1 SSegmentationt tiOperational excellenceMatchmaking data People and culture ProcessesUser insightsHarmonised employer conditions IT Deeper advertiser informationD d tii fti Strategic Human Resource Print cost structuremanagement 1 Customer relationship management70 69. Part Edi Bhler I Market Analysis I Plans for the futureImprovements on all key performance indicators 145 142 1 Total revenue improves again after REVENUE E some difficulties during financial 140 137 137 crisis and initial transformation 135133process from offline to online. 131 Growth expected to continue going 130 forward. 7062 1 6054Steady growth in online (local.ch & ONLINE44 home.ch) at a CAGR rate of 16%. ) 50 42 Importance of total online revenue to 4034continue to grow at a rapid rate. 30 5048.0 Profitability to increase again, due to 4030.0 1 new set-up of organisation under EBIT3 38.0 27.7 30one leadership. Further operational 31.8improvements anticipated going 20forward.2007 2 2008 220092010 2011 1 Forecast 2 EBIT non restated figs 3 local ch & home ch only local.ch home.ch71 70. Part Edi Bhler I Market Analysis I Plans for the futureStrong #2 behind GoogleNielsenUnique audience1 201123.53.02.5252.01.51.00.5000.0 Netmetrix Unique clients3 2011 50% 30% 6%11% % 9%7%8%5%7%8% 4%2% 10%-10%-30%-50% Jan Feb Mar AprMay JunJulAugSep Oct Nov Dec 1 Nielsen/ Netratings 2 Average Unique Audience from January 2011 until October 2011 3 Source: Netmetrix / Unique clients72 71. Part Edi Bhler I Market Analysis I Plans for the futureUncontested #1 in mobile Mobile app performance 20117.0 12 user use6.0 10 times a 10month25.0 38% +38% 8 usage14.063.042.0+62% downloads321.010+53% apps in0.0use1 0 JanFeb MarAprMay JunJulAug Sep Oct Nov Dec 1 On all platforms (iOS,Android,Blackberry,W7,Nokia) Source : amount of searches by mobile devices to our server 2 Average usage per device = usage of mobiles app1 / mobile unique users1 3 Source : Apple / amount of searches by mobile devices to our server73 72. Part Edi Bhler I Market Analysis I Plans for the futureKey InitiativesTotal Swiss local advertising market Zoom on Online Business models (excl. online press)CHF m, 2010CHF m, 201062585 260 90 890110 100 290 110 100 290gate24.chOthers 1415Others80Others 320green search.ch 16 verticalizationBooking 3CCO 19Others 45 book Groupon 10 G CouponingGoogle couponing Deindeal 15Others 205 16 Renovero 14Lead Generation Blick 140 SC Directories110videoMaturityPG exc. localUX 10 NZZ 190designWebsite creation & content360 120Energy 10 local OnlineAPG 52 Local.chcontent welcome 54websitePG exc. local 10new mobile VariousSF1, SF2, Sat1, ProSieben 15Goldbach Minuten etc. 24020 ff ioffering immoscout24.ch 10 jobscout24.ch 10Media 25swissfriends.ch 10 ClassifiedsVarious Goldbach media 30 home.ch homegate.ch 20Press Online DirectTV, radio,Printed Search & Marketing1 outdoor (Print&Online)DirectoriesFind Local.ch Tamedia Ringier PubligroupeOther Source : Publisuisse Mediaguide, Swisscom, OC&C analysis1. We assumed that half of the Direct Marketing is local2. Website2 W b it creation market sizing assumptions: 15% of SME not owning a website create one, 15% of those with website rebuild it i a given year, average annual spend: CHF 3.500;tik t i itifti b ittf th ith b itb ild ini l d3 5003. Emerging segment in 2010, estimated at CHF 1m74 73. Part Edi Bhler I Market Analysis I Plans for the futureConclusion Improvements on all dimensions Review: Online revenue keeps on growing with double digits Solid online audience on no 2 search & find after google maps sustainable aheadof national competition Uncontested no 1 in mobile search & find1) Nielsen / Netrating2) Available on iOS, Android, Blackberry,W7 Outlook: Turn search & find into matchmaking Improve user experience enlarge mobile portfolio experience, Explore upcoming business models in transaction and lead generation Increase sales impact & efficiency75 74. DIGITAL & MARKETING SERVICESProfitable growth in Digital Marketing Services ( g g g(DMS))Renato MartignoniCFO & COO Digital & Marketing Services76 75. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS strategy R ltk t trends d t t77 76. Part Renato Martignoni I DMS performance overview I DMS strategyWith our portfolio we cover both technology- and professionalservices-drivenservices driven businessesDigital & Marketing Services portfolioDigital (marketing) assets Not in focus Technology-orientedbusiness models arehighly scalableTechnologyTechnology- Key European marketsK Ek torientedpenetrated - e.g.1)Zanox is #1 or #2 inkey markets 1)Professional services-oriented business modelsProfessional Namics benefit from scopeservices-Covered examples: e-porientedbusiness concept, searchengine optimisation, leadPerf. marketing services Not in focus management, etc.Demand-sideDd id Supply-sideS l id (advertiser) (publisher)1) Zanox subsidiaries78 77. Part Renato Martignoni I DMS performance overview I DMS strategyStrong operational performanceDMS financial performance recap 2009-2011 [CHF m]2009 2011Operating performance is not visible from the 500reported view because of 400Zanox is not consolidated (EBIT incl. 47.5% ofZanox net results) evenue 300High PPA depreciation (CHF 6.9 m p.a.)Forex and temporary impactsRe 200 218 100156147 Revenue0 CAGR growth of 9% (pro-forma) fuelled by the 1) above market growth of Zanox and Namics Reported Pro-Forma*SVBmedia agency business model is under20.0pressure CAGR -18%EBIT9.710.0 EBIT 6.8Strong contribution of Zanox and Namics1.8 SVBmedia still delivering positive EBIT despitevolume reduction 0.02008 20092010 2011Non-recurrent gains in 2009 and non-recurrentforex loss in 20101) P F Pro Forma: PG Share of Revenue/EBIT at constant FX before PPA Sh fR /EBIT tt t b f79 78. Part Renato Martignoni I DMS performance overview I DMS strategyTop performers Zanox, NamicsDMS financial performance recap 2009-20112009 2011Zanox Revenue 2004 - 2011 (in EUR m) JV formed in 2007, Axel Springer50052.5% 52 5% PubliGroupe 47 5% 47.5%400CAGRAbove market growth achieved29%300 organically and via acquisitions200CAGR 29% since creation of the joint venture100 Business model proved able to0 2004 2005 20062007 2008 2009 2010 F2011 grow independently of market crisisNamics Revenue 2004 - 2011 (in CHF m)14% of continuous organic growth50CAGR since 2004 14%40 Blue chip clients in CH, DE and USA30 Resilient to the last market20 downturn10 2004 2005 200620072008 20092010F2011 80 79. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS Strategy R ltk t trends dSt t81 80. Part Renato Martignoni I DMS performance overview I DMS strategyZanox is Europes leading performance advertising networkBusiness model (1/3)Source: Company informationS C i fti82 81. Part Renato Martignoni I DMS performance overview I DMS strategywhich means connecting >3,000 advertisers with a broad rangeof publishers and generating > 70 m transactions p.a. paBusiness model (2/3) Accommodating relevant publisher g Achieving outstanding results categories(example Germany)CONTENT DISPLAYRETARGET.> 300 k DSL > 1 m flightsconnectionsSEARCHE-MAILE MAIL VOUCHERSSOCIALMOBILE> 1.5 m fashion> 200 k onlineitemsbanking leadsSource: Company informationS C i fti83 82. Part Renato Martignoni I DMS performance overview I DMS strategy GlossaryZanox stands for sales CPM = Cost per thousand impressions CPC = Cost per clickBusiness model (3/3) CPA = Cost per action C t tiCustomer FunnelAwareness Interest DesireActionReachVisits Sales CPMCPCCPASource: Company informationS C i fti84 83. Part Renato Martignoni I DMS performance overview I DMS strategyTop performance attracts top advertisersAdvertisersSource: Company informationS C i fti85 84. Part Renato Martignoni I DMS performance overview I DMS strategyZanox takes a leading position in a growing marketCompetitive position and growth Consistent growth in key markets and successful post- merger integrations in UK have made the Zanox Group ggp #1 position in market #1 affiliate network in Europe#2 Successful market entries in Eastern Europe, Turkey and Brazil in 2011 Gain of Benelux market leadership position with M4N acquisition (1H 2011) Large operational investment to accelerate growth and innovation - launch of the first European affiliate marketing marketplace E-commerce forecast Zanox revenue development 2000-2012E [EUR bn] CAGR [EUR m] (main driver for business) 118 Germany 9%31 UK 10%81 France 10%2248 Netherlands 9%33 Italy12% Spain15%4 63 5 Sweden 11%20112015Source: Company information, FS C i ftiForrester, W t t Western Europe Online Retail Forecast 2010-2015 EO li R t il Ft 2010 201586 85. Part Renato Martignoni I DMS performance overview I DMS strategyDriving innovation in the market: introducing next generationof performance advertising marketplaceInnovation Metrics and KPIs on performance of advertisers and publishers Transparency on advertising value chain Self-service search and discovery Comprehensive self promotion capabilities Ability for advertisers to interact with publishers directly Unified U ifi d user experience across Z iZanox Group including digital windowSource: Company informationS C i fti87 86. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t d and DMS Strategy R ltk t trends dSt t88 87. Part Renato Martignoni I DMS performance overview I DMS strategyNamics is a market leading professional services providerCompany profile NamicsCompany HighlightsClient Case / Example Online consultancy specialising inWeb content managementProduct information & e commercee-commerceIntranet & collaborationOnline branding & communication Professional services business model, 23 partners model with minority equity stakes and profit sharing Employing 320 professionals in Switzerland and Germany1) Market leader in Switzerland, top 20 in Germany2) Worldwide online storefront for FREITAG Selected KPIs Full collection range of unique productsCAGR growth 04-11 of 14% Tight integration in backend systems and logisticsEBIT margin 6%1) November 20112) S Source: htt // http://www.agenturranking.de/t ki d /89 88. Part Renato Martignoni I DMS performance overview I DMS strategySVBmedia is an independent media agencyCompany profile SVBmedia Company Highlights Client Case / Example SVBmedia is the largest independent media agency in the Netherlands, focusing on the SME- segment Adverse market developments and technological changes pose several threats, but also opportunities for further growth of profitability After 20 successful years the traditional but eroding fee based business model will be gradually replaced by an hourly based model In 2012, SVBmedia will organize and position itself for the anticipated growth of future demand for high p g g added value, independent media guidance Client H&M wanted maximal attention and audience for the opening of its flagship store in All activities will be concentrated in Amsterdam Amsterdam Selected KPIs: SVBmedia planned and organized all media efforts,pg , Billing 2010 EUR 60 m up through the light show at the opening (pic.) Employees 70Source: company informationS i fti90 89. Agenda 1 DMS performance overview 2 Zanox growth and innovation 3 Namics, SVBmedia 4 Relevant market t R ltk t trends and DMS St t dd Strategy91 90. Part Renato Martignoni I DMS performance overview I DMS strategyOnline advertising is growing in all sub-segments and is themost promising segment in the overall advertising sectorOnline advertising growth [EUR bn]Online advertisingAdvertisingsub-segments 2011EMEA 2011-20155.3% Growth 2010-201111.5%11 5% 10.7%10 7% 11.7%11 7% 42.2%42 2% 101.4101 4106.8 106 8 112.3 112 3118.9118 9 124.7124 719.8Rest1) 0.434.91.8 ((CAGR 3.2%)) 32.5 33.6RoEMEA31.5 30.7 Newspapers25.27.3 (CAGR 2.5%)Western23.823.324.58.181Europe 22.817.617 6TV41.8 36.8 29.7(CAGR 6.6%) 32.4 34.7Online28.528 531.531 5advertising 19.8 22.5 25.4 25 4(CAGR 12.2%)Search Display Affiliate MobileTotal 2011 2012 2013 20142015 EMEA1) Rest = Trade magazines, consumer magazines, directories, out-of-home, radio, video games, and cinemaNote: Total is subject to overlap of categories within online advertising and standalone 92 Source: Zanox estimations, PwC 2011 (exchange rate USD/EUR=0.75469) 91. Part Renato Martignoni I DMS performance overview I DMS strategyThree observations about relevant trendsIndustry trends with focus on online advertising - selectedTarget audience buying makes sense - this is why automated buying through real-time Display goes bidding (RTB) is here to stay real-timeRTB has arrived in Europe: in UK, Germany and France it will account for 25%, 20%and 21% of display ad spending in 2015, respectivelyMobile advertising finally takes off fuelled by smart phone penetration and mobile Mobile gains broadband - 52% of all phones sold at Swisscom in 2010 were smart phones and there traction are already 936 m 3G subscribers globallyGlobalGl b l mobile apps & advertising revenue i expected t grow t USD 12 m i 2011 ( bil d ti iis t d to to in (up17x in the last 3 years)Facebook accounted for ~31% of all display ad impressions in the US (Q1 2011) Social l i S i l claims Facebook just released its new Ad API in August 2011 - more advertising companies to its stakeintegrate this channel and offer more innovation and scale in social advertising How should advertisers build their strategy?Source: PG research, KPCB (Informa, Gartner), Comscore, IDC, SwisscomS h (I fG t ) C IDC S i93 92. Part Renato Martignoni I DMS performance overview I DMS strategyWe believe in four key hypotheses which guide our missionDigital & Marketing Services hypotheses and mission statementGuiding Hypotheses MISSION STATEMENT DIGITAL & MARKETING SERVICES1. The advertising market experiences a shift of power from publishers towards advertisers. Budget decisions are beinggg made in a more informed way than before Helping advertisers and agencies2. In order to influence these decisions, a long-to spend marketing budgets more term oriented player in the ecosystem musteffectively by offer professional services ("performance agency") focusing on measurable performance and ROI3. Nevertheless, scalability (and hence, growth potential) needs a technological basisbasis. offering leading professional This is also true in order to stay relevant in aservices disintermediation game employing value adding tools & information4. Key enabler in the performance ecosystemyp y of tomorrow will be data as basis for technology and services 94 93. Part Renato Martignoni I DMS performance overview I DMS strategyConclusion Our largest investment Zanox Group is taking a leading position in a growing European Market, delivering a strong double digit growth performance The favourable operational performance of Digital Marketing Services is not reflected in the consolidation PubliGroupe is taking action to adjust this in 2012 (Group CFOconsolidation. will explain) Digital Marketing Services is preparing new developments and investments capitalising on a favourable industry framework (growth technology innovation) (growth, Digital Marketing Services will continue to focus on execution along strict investment criteria95 94. Q&A SECTION SEARCH &FIND & DMS96 95. FINANCIAL CONSIDERATIONS Solid balance sheet secures strategic freedom Andreas Schmidt Chief Fi Chi f Financial Offi i l Officer97 96. Agenda 1 Overview & key messages 2 Cost reduction & improving the balance sheet 3 PubliGroupe real estate portfolio 4 PubliGroupe press participations 5 SIX segment & accounting standard change98 97. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12Overview & Key messages 34Solid balance sheet secures strategic freedom 5PubliGroupe has responded well to the crisis and structural changes with a firmppgand selective cost discipline and consistent divestments.The Group enjoys a solid balance sheet and a healthy liquidity. On this basis theGroup has the strategic and financial freedom for future investments divestments investments,and restructurings if necessary.The Group holds important pp p participations and real estate assets which we believe pare not fully reflected in todays share price.PubliGroupe has announced plans to divest 4 real estate assets and to return a bigpart of the proceeds to shareholdersshareholders.PubliGroupe will change to the domestic segment and change from IFRS to SwissGaap/ FER financial reporting standard in order to increase transparency. 99 98. Agenda1 Overview & key messages2 Cost reduction & improving the balance sheet3 PubliGroupe real estate portfolio pp4 PubliGroupe press participations5 SIX segment & accounting standard change100 99. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Cost cutting 3 4Over 40% cost reduction over the last 4 years5 CHFmSavings of CHF 142 machieved over the lastEnormous cost and structure 4 yearsreduction achieved since 2007Cost cuts achieved with onlymoderate restructuring expensesHighly differentiated approach withvery selective reduction targets andprotecting growth areasConsistent reduction in the futureand whenever business realityrequires further cuts 101 100. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Cost cutting 3 4Selective FTE reduction5Reduction of 785FTEs over the last4 years Big and sometimes painful reduction efforts since mid-2008 mid 2008 Very selective reduction, build-up of FTEs in growth areas Overall guideline is CHF 150000 gross margin/employee target If required, further cuts will be implemented 102 101. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Improving the balance sheet3 4Consistent divestment of non core assets non-core5Divestments 2009 - HY2011 & gain in net result (CHFm) 2009 to 2011 divestment of non-core assets suchnon core as Real estate: Baden & Lausanne Non-core press participations: BAZ, Edipresse, others Emphasis Video Participations in China Real estate37% BAZ Medien /Divestment Winterthur 19.9% Edipresse Emphasis VideoReal estateof non-core Huashang InteractiveZurich 100% St dt Stadt- Real t t BadenR l estate B d /assetsCity Media anzeiger Olten Lausanne2008 20092010 2011 103 102. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Improving the balance sheet3 4Reduced bank debt & strong liquidity on a half-year basishalf year5 CHF m %6/30/20116/30/2010 Balance sheet Total assets-11% 802898 Shareholders equity -4% 401418 Shareholders equity in % of total assets50%47% Bank debt (short term)13 27 Bank debt (long term) 80 93 Total bank debt -23%93120Net short-term Group liquidityshort term24%7964 Debt reduced by CHF 72 m (2009 bank debt of CHF 165 m) to CHF 93 m in 2011 Improved short-term liquidity in 2011 (FY2010 with CHF 118 m net liquidity) Strong balance sheet with 50% equity ratio Target: maintain investment capacity of CHF 50 m plus 104 103. Agenda1 Overview & key messages2 Cost reduction & improving the balance sheet3 PubliGroupe real estate portfolio4 PubliGroupe press participations5 SIX segment & accounting standard change105 104. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio3 47 assets located in Switzerland and in France5BernLausanne - Mon-ReposLausanne - MousquinesLausanne - Toises 1971 | 4490m21974 | 3219m2 1980 | 4211m2 1962 | 2047m21153 TCHF1104 TCHF 1206 TCHF718 TCHF ZrichDelmontParis Total surface22072 m2TotalT t l rental t l revenueCHF 7.9m1982 | 4695m2 1992 | 1045m2 1970 | 365m2 3518 TCHF168 TCHF 41 TCHF Note: Year of construction | Surface area | Rental revenue per year (TCHF) 106 105. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio - key figures3 4Surface - occupation of the buildings5Bern - Seilerstrasse 850% 50%Lausanne - Mon Repos 2281%14%5%Lausanne - Mousquines 4 63%27%10% GroupLausanne - Toises 12100% Third party Vacant Zrich - Neumhlequai 6100% Delmont - Courroux 6100%Paris - Victor Hugo 26100% 0% 10%20%30% 40%50% 60% 70%80% 90% 100% Less than 40% of the total surface is occupied by PubliGroupe 3 buildings are fully rented to external parties: Lausanne - Toises, Zurich and Delmont Paris is entirely occupied by PubliGroupe The other buildings are occupied both by PubliGroupe and external tenants: Bern Lausanne -Bern, Mon-Repos and Lausanne - Mousquines High occupation rate: only 2.8% of the surface is vacant 107 106. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio3 4Valuation5Local GAAP Tax book value IFRS value asW&PActualvalue as ofas of 31 Dec 10 31-Dec-10of estimatedPubliGroupe31-Dec-10 31-Dec-10market value market value (in CHF ths)as of May-11 estimateBern - Seilerstrasse 8 26788308790716720 20000Lausanne - Mon-Repos 22 16550 14876974417950 22000Lausanne - Mousquines 418988657 1004318640 23000Lausanne - Toises 12 44004975329613200 16000Zrich - Neumhlequai 69443 26118 3292770890 90000Delmont - Courroux 6223422342530 23002300Paris - Victor Hugo 2622122122136503700TOTAL 37424 65389 66668 143350 177000 Total real estate portfolio estimated to have a value above CHF 140 m in May 2011 according to independent experts study (W&P) However, expert study calculates with a discount rate that is above todays level. In addition, our last 3 transactions were all executed at 20%+ higher than the expert estimate. We therefore believe that our best estimate of CHF 177 m is a better reflection of the actual market conditions. 108 107. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2PubliGroupe real estate portfolio3 4Board decision for divestment and refund to shareholders 5PubliGroupe p p plans to divest 4 assets in 2012: 3 Lausanne buildings: Mon-Repos, Mousquines, Toises Bern buildingZurich Neumhlequai assets will remain in portfolioDelmont asset is up for sale and Paris asset is used for Publicitas FranceSale proceeds will be used as return for shareholders and partly for debt reductionThe method how to best return the proceeds to shareholders is under evaluation 109 108. Agenda1 Overview & key messages2 Cost reduction & improving the balance sheet3 PubliGroupe real estate portfolio4 PubliGroupe p p press p participationsp5 SIX segment & accounting standard change110 109. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change12PubliGroupe press participations34Most valuable press participations amount to CHF 76.5 m 76 5 5 FPH (Freie Presse Holding) % stake Subsidiary of the Swiss publishing house Neue Zrcher Zeitung, combining all major regional press participations of the group 25% St. Galler Tagblatt, Thurgauerg , g Tagblatt, LZ Medien are only some of the titles in FPH portfolio SNP (Socit Neuchteloise de Presse) Part of the Hersant Group and one of the prominent newspaper publishers in 29% French speaking Switzerland Key media: LExpress and LImpartial Sdostschweiz Presse AG Subsidiary of the Sdostschweiz Medien Group in charge of printing well known titles such as:20% Sdostschweiz Graubnden, Bndner Tagblatt, Bndner Woche 111 110. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12PubliGroupe press participations34Summary & outlook 5Assets in associates:CHF 76 5 m of which CHF 70 m in Freie Presse Holding (FPH)76.5Other participation assets (in marketable & AFS securities):CHF 19 m of which CHF 14 Mio in TamediaPosition planned for further reductionResults of participation (1st sem. 2011):EBIT: CHF 2.3 m, mainly from FPHFinancial result: CHF 0.4 m, volatile result because of TAM stock price OutlookPubliGroupe has largely reduced its press participations over the last yearsPubliGroupe is in minority situation and currently not actively pursuing further reductions. However,we are open to review the situation when appropriateWe believe that the market does not fully reflect the value of these assets112 111. Agenda1 Overview & key messages2 Cost reduction & improving the balance sheet3 PubliGroupe real estate portfolio4 PubliGroupe p p press p participationsp5 SIX segment & accounting standard change113 112. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12Change of reporting standard and of SIX segment 345 PubliGroupe intends to implement in 1st semester 2012:Change of listing from SIX main to SIX domestic segment=> in order to allow:Change of PubliGroupe reporting standard from IFRS to Swiss Gaap/FER Advantages for PubliGroupeHigher transparency of PubliGroupes partnerships and joint ventures PubliGroupe sHigher transparency of the Groups real performance and strategic progress. Furthermore,favourable transparency rules of IFRS such as segment reporting and others will be maintainedwhile applying Swiss Gaap/ FER.Complexity and cost reduction: Swiss Gaap/FER is a more stable and less detailed standardthan IFRS (e.g. pension accounting, financial instruments, employer foundation, others). Disadvantages for PubliGroupeDepreciation of goodwill and intangibles in Swiss Gaap/FER will ultimately result in a decrease ofconsolidated shareholders equity.114 113. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12Standard change - Main accounting changes | 1/2 34IFRS P/L versus Swiss GAAP FER P/L5 Companyp yIFRS P/LSwiss GAAP P/L with proportional method LTV Gelbe Seiten AG 1) All P/L lines presented at 100%1) All P/L lines presented at 51% 2) Minus one line "non-controlling2) NO line "non-controlling interests"interests" at - 49% Swisscom DirectoriesOne line at 49 % in the EBITAll P/L lines presented at 49% AG(share in result of associates) and local.ch AG local ch Zanox AGOne line at 47.5 % in the EBITAll P/L lines presented at 47.5% ( (share in result of associates) )115 114. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 1 2Standard change - main accounting changes | 2/23 4Goodwill accounting + Capitalisation of sales force costs5GoodwillIFRSSwiss GAAP FERAccountingBalance Sheet Purchase price allocation process toNo PPA process for intangibles.intangibles and residual goodwill Offset of acquired goodwill with equityat the date of the acquisition, with aq ,theoretical calculation of amortizationover 5 years in the notesProfit and Losses Depreciation of intangibles No yearly amortisation, but goodwillNo straight line amortisation of goodwill considered in the profit and losses atthe time of the exit from theconsolidation scope Capitalisation of sales IFRSSwiss GAAP FER force costsSearch & Find Sales commissions incremental to theSales commissions are recognisedcontacts acquisition are recognised asi iii d directly through the P/Ldil hh hintangible assets and depreciated whenrevenue is realised (over three years) 116 115. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12Change of reporting standard and of SIX segment 34Timing5PubliGroupe intends to implement segment and standard changeGin 1st semester 2012:Announcement of intended change: Dec 1stPresentation of new accounting d t ilP t tif ti details:March 2012Planned change of SIX segment:g g May 2012First financial report in Swiss Gaap/FER: August 2012117 116. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change1 2Change of SIX segment3 4Companies listed according to domestic standard5In total, 50 companies (all Swiss) are listed according to the domestic standard at SIX Swiss ExchangeCompanyIndex memberIndustry Sector Accounting rules Market cap (in CHFm)1 Berner Kantonalbank AS SPI / SPIEX Banks Bankengesetz2,3232 METALL ZUG AGSPI / SPIEX Cyclical Consumer ProductsSwiss GAAP FER1,368(2)3 Meyer Burger Technology AG SPI / SPIEX / SMIM / SMIEXIndustrial GoodsIFRS1,185(1)4 Emmi AGSPI / SPIEX Food & BeveragesSwiss GAAP FER1,0595 Conzzeta AGSPI / SPIEX Industrial GoodsSwiss GAAP FER8976 Daetwyler HoldingSPI / SPIEX Industrial GoodsSwiss GAAP FER8057 Vaudoise Assurances Holding SA SPI / SPIEX Insurance IFRS7808 Bell Holding AGSPI / SPIEX Food & BeveragesSwiss GAAP FER7209 Vetropack Holding AG SPI / SPIEX Applied Resources Swiss GAAP FER611TOP 10Zehnder Group AG(3) SPI / SPIEX Industrial GoodsSwiss GAAP FER60711Bank Linth LLB AGSPI / SPIEX Banks Bankengesetz g 358 2012BossardSPI / SPIEX Industrial GoodsSwiss GAAP FER34813CPH Chemie + Papier Holding AG SPI / SPIEX Applied Resources Swiss GAAP FER34514Jungfraubahn Holding AGSPI / SPIEX TransportationSwiss GAAP FER32115Hypothekarbank Lenzburg AG SPI / SPIEX Banks Bankengesetz30616Huegli SPI / SPIEX Food & BeveragesSwiss GAAP FER281(3)17Orell Fssli Holding AGSPI / SPIEX Industrial services IFRS22018IVF HARTMANN Holding AGSPI / SPIEX Healthcare Services Swiss GAAP FER21219Bank CA St.Gallen AG SPI / SPIEX Banks Bankengesetz20220Gurit Holding AG SPI / SPIEX Chemicals Swiss GAAP FER201Source: Credit SuisseNote: SPI = Swiss Performance Index; SPIEX = SPI Extra; SMIM = SMI Mid; SMIEX = SMI Expanded (1) IPO in 2004(3) Change of regulatory standard in 2010/2011 (2) IPO in 2006 (3) Ch f SIX domestic standard includes as well international active companies, such as Daetwyler Holding, Emmi, Metall Zug and othersSource: Credit Suisse118 117. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard change 12Change of reporting standard and of SIX segment 34Conclusions 5Higher transparency: The proportional consolidation would replace the existingcomplicated consolidation structures ( (combined f consolidation with minority part andfullequity consolidation) and would give a more realistic in view of the P+S partnership andthe Zanox JV.Complexity & cost reduction: IFRS continues to increase its complexity and SwissGAAP FER has become the more appropriate standard for a mid-sized company suchas PubliGroupe.Impact of accounting: The major accounting impact will be the proportionalconsolidation of local.ch and Zanox. In addition, the change of the accountingtreatment of acquisitions (depreciation of goodwill at acquisition) will impact balancesheet and P&L.Several other companies have done the move: Several companies have previouslymade this shift from IFRS to Swiss GAAP FER without any adverse external effect. TheSIX domestic segment is well respected by the stock market .119 118. Part Andreas Schmidt I Cost reduction & improving balance sheet I Real estate portfolio & participations I Accounting standard changeOverall conclusionsPubliGroupe has demonstrated cost and balance sheet focus and will continue to do soThe balance sheet includes important and valuable participations and real estateassets which are not fully reflected in todays share pricetoday sBy changing the financial reporting standard in 2012, PubliGroupe wants to achieve ahigher transparency for local ch and Zanox and wants to reduce complexitylocal.chThe board has decided to divest 4 real estate assets and to return big parts of theproceeds to shareholders120 119. CONCLUDING REMARKSHans-Peter RohnerHP t R hCEO & Chairman of the Board121 120. Part Hans-Peter Rohner I Key decisions on Group and segment level I The way forwardPubliGroupe - the way forwardMarket perspective:- local.ch: leading Swiss online, mobile andprint search portal- Zanox: the leading performance advertisingnetwork in EuropeMarket- Publicitas: an established service providerand sales platform, delivering solutions tomore than 400 000 customers in Switzerland400,000and selected international marketsEmployee perspective:- A Group in transformation; creation of newattractive jobs in the digital arena.- Reduced workforce, higher profitability Investors Employees- Upscaling of know how & education level; know-howmore performance-oriented renumerationShareholder perspective:- A Group with reduced complexity with theobjective to optimise marketing spend for itscustomers- Creation of sustainable value in definedcore business segments- Continued divestiture of non-core assets122 121. Q&A123 122. Investors Day 2011 yZurich, 1 December 2011124