Full Yr 2020 TX Group AG Earnings Name Zürich Mar 11, 2021 (Thomson StreetEvents) — Edited Transcript of TX Group AG earnings convention name or presentation Thursday, March 11, 2021 at 11:00:00am GMT TEXT model of Transcript ================================================================================ Company Members ================================================================================ * Andreas Schaffner TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board * Marcel Kohler 20 Minuten AG – Director * Marco Boselli Tamedia Publications romandes S.A. – Head of Paid Media * Michi Frank Goldbach Group AG – CEO * Olivier Rihs TX Group AG – CEO of Tamedia’s Classifieds & Marketplaces Enterprise Phase * Patrick Matthey TX Group AG – Head of Communications & Public Affairs * Pietro P. Supino TX Group AG – Chairman, CEO, Member of Administration Board & Writer * Samuel Hügli TX Group AG – Head of the Expertise & Ventures Division and Member of Administration Board * Sandro Macciacchini TX Group AG – Head of the Funds, HR & IR Division and Member of the Administration Board ================================================================================ Convention Name Members ================================================================================ * Andy Schnyder zCapital AG * Daniel Bürki Zürcher Kantonalbank, Analysis Division – Analysis Analyst ================================================================================ Presentation ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [1] ——————————————————————————– Women and gents, I wish to welcome you to this analyst name in relation to TX Group’s annual outcomes. These outcomes shall be offered to you intimately in a second by our CFO, Sandro Macciacchini, adopted by the administrators of the totally different corporations, so as of TX Markets, Goldbach, Tamedia, 20 Minuten and Ventures. They’ll talk about the corporate’s imaginative and prescient and the important thing occasions of the previous 12 months and the attitude of 2021. It is possible for you to to ask questions straight after every speaker following the process indicated within the invitation to this convention. To start this name, I give the phrase to Pietro Supino, Chairman and Writer of TX Group. Please, Pietro. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [2] ——————————————————————————– Hiya, everyone. That is Pietro Supino talking. I hope which you can hear me, and welcome to our analyst name. The 12 months 2020 has been troublesome and difficult for us, each operationally and financially. As a diversified media group and operator of fashionable platforms, we’re near the heartbeat of society and clearly affected by what is going on on. So we have now been affected by the corona disaster primarily, however fortunately not solely in a unfavorable means. On the identical time, I am proud to report that many optimistic developments in numerous fields of our diversified actions have been potential. And I wish to invite afterwards, the overall managers of our enterprises to present brief displays. What they stand for, how their segments did in 2020 and what they’re engaged on at the moment. Along with the continued challenges, we have now been busy final 12 months with the implementation of our new decentralized construction of the group. This has labored very nicely. We’re at level already, and it’s important as a result of it is going to assist us, we’re satisfied, to form our future. We did implement this new decentralized group as a result of over the past 20 years, we have now encountered many challenges in our conventional fields of actions. And on the identical time, we have now discovered many alternatives, of which fortunately we have now been in a position to grasp some and to construct new companies. And by doing that to diversify our portfolio. That then, once more, has led to a comparatively excessive complexity of our group, and it has grow to be an increasing number of obscure and to clarify what we stand for. For that cause, we have now developed our new decentralized group that enables to develop the totally different actions on the premise of their merchandise, and near their markets. And we’re satisfied that by doing that, we’re in an excellent place to confront the continued challenges that we encounter on the market and we’re additionally extra agile, we’re satisfied, to adapt to altering circumstances. Total, I am impressed by the efficiency of my colleagues, each within the central companies and within the numerous actions. And I wish to allow them to now report for every exercise. And on the finish, for the group, how we have now been doing and what we’re engaged on. And after that, we’ll be at your disposal for questions. However for any particular questions concerning the assorted actions, we suggest to debate them straight after the displays that can now observe my brief introduction. Thanks, and converse to you later. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [3] ——————————————————————————– Thanks, Pietro Supino. We’ll take, as you stated, questions on TX Group on the finish of the decision. And I give the phrase to Sandro Macciacchini, CFO of TX Group. ——————————————————————————– Sandro Macciacchini, TX Group AG – Head of the Funds, HR & IR Division and Member of the Administration Board [4] ——————————————————————————– Thanks. I hope you may hear me nicely, too. Good morning, everyone. I wish to begin with an summary of the monetary key figures for the 12 months 2020 on Slide 6 of the presentation I hope you might have in entrance of you. On the far left, you see that revenues have been down by 13%. This was primarily as a result of decline within the promoting market and the drop in recruiting sector because of the coronavirus. Within the first half of 2020, the decline was 18%, so we benefited from a notable restoration within the second half of the 12 months. Decrease prices compensated for 60% of the decline in revenues, given an adjusted EBIT of CHF 83 million. Backside line, we report a web lack of minus CHF 95 million. That is largely attributable to an impairment of Tamedia through the first half of the 12 months. As well as, within the second half of the 12 months, we reported losses on the gross sales of Trendsales and Olmero within the quantity of CHF 18.7 million. Because of the higher efficiency within the second half of the 12 months, adjusted free money circulation recovered significantly to CHF 94 million for the complete 12 months as a complete in contrast with 0 after the primary 6 months. As a reminder, adjusted free money circulation is working money circulation after investments in amenities or in different phrases, in CapEx, however earlier than acquisitions, dividends, enterprise on our settlement of liabilities. Total, web liquidity diminished by CHF 24 million and amounted to CHF 183 million by the top of the 12 months. The following chart reveals that the decline within the promoting market accounts for two/3 of the lack of revenues for the TX Group. The decline in income for classifieds and companies was 7%, a lot of which was on account of drops, as already talked about. The revenues from the consumer marketplace for publishing have been largely secure at minus 2% with a complete variety of subscriptions growing. A comparability with earlier disaster years, on the subsequent chart reveals that TX Group demonstrated the sound stage of resilience in 2020. In contrast with the monetary disaster in 2009, we confronted a decrease decline in income and likewise EBITDA. Additionally, the decline of the GDP was a lot larger than in 2009. The following chart reveals the natural — that the natural decline in revenues was additionally minus 13%. Right here included are opposing results at Ventures. On the one hand, we acquired the bulk in Zattoo in 2019. However, we ended our investments in Starticket and Olmero in 2020. The following chart reveals that digital share of income continued to extend. In whole, 56% of revenues have been achieved with digital choices within the reporting 12 months, with 41% of those coming from non-publishing actions. The digital share in revenues in publishing per se was up at 33% within the promoting market and 26% within the consumer market. The following chart reveals our web outcomes with out one-off impact and which means, particularly in regards to the disposal losses from the gross sales of Trendsales and Olmero, and with out the impairment on Tamedia. The general consequence with out these one-off results is CHF 8 million, and compares with a normalized consequence within the earlier interval of CHF 77 million. As already communicated, we have been in a position to conclude proceedings in opposition to the gross sales of Trendsales final week. These proceedings delivered a revenue of round CHF 12 million and shall be reported as monetary acquire in 2021. The following chart reveals the money circulation assertion. As you may see on the left aspect, money circulation from working actions earlier than curiosity and tax declined by CHF 33 million. This led to a money circulation from working actions of CHF 128 million. Right here included is a optimistic impact of CHF 9 million on account of a decrease web working capital on the finish of the 12 months than initially of 2020. Money circulation from investing actions was right down to minus CHF 12 million. Right here included are the sale costs for Olmero and Trendsales of round CHF 20 million. Money circulation from financing actions was minus CHF 131 million. Right here included are dividends to the shareholders of TX Group of CHF 37 million and to minorities of CHF 42 million. On the finish of the interval, money and money equivalents stood at CHF 276 million. The following chart reveals that capital expenditure summed as much as CHF 36 million and was CHF 11 million larger than within the earlier interval. Right here included are investments in IT, actual property and so-called retrofits of our printing plant. For the long run, we foresee a mean of round CHF 25 million OpEx per 12 months. When deducting the CapEx from the money circulation from working actions, you get what we name the free money circulation adjusted confirmed on the proper finish of the slide, that could be a free money circulation earlier than acquisitions and disposals. This free money circulation adjusted quantities to CHF 94 million in comparison with 0 within the first half 12 months report. This reveals that the money circulation considerably recovered within the second half of the 12 months. To conclude, a brief have a look at the steadiness sheet on the subsequent slide. The fairness ratio was as much as 73% on the finish of the reporting interval and web liquidity stood CHF 183 million. This additionally reveals that TX Group is, regardless of the disaster, financially in good well being and in a robust place to reap the benefits of the alternatives the disaster is providing as a result of accelerated tempo of digitalization. With that, I wish to hand over to my colleagues for his or her operational reporting. Thanks on your consideration. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [5] ——————————————————————————– Thanks, Sandro Macciacchini. I’ll give the phrase to Olivier Rihs, CEO of TX Markets. Olivier, go forward. ——————————————————————————– Olivier Rihs, TX Group AG – CEO of Tamedia’s Classifieds & Marketplaces Enterprise Phase [6] ——————————————————————————– Hello, everybody, and welcome at TX Markets. Earlier than we take a look on the numbers, two necessary issues. We now have now a brand new car with TX Markets Restricted, the place we joined all our huge manufacturers, Automobile For You, Homegate, Tutti, Ricardo and JobCloud collectively with a view to be smarter, higher and quicker, with this new group and leverage know-how all through the entire group. We additionally established an funding committee. We wish to make investments additionally in start-ups and new know-how. To be able to be additionally in a position to combine them in our platforms. So now we’re in a position to drive the expansions of our actions forward extra rapidly. And we intention to put money into progressive and disruptive applied sciences and enterprise fashions to strengthen our platforms and likewise to broaden the portfolio. And at all times, after all, within the curiosity of our customers of Central, after all, and protecting with our imaginative and prescient, on a regular basis selections are made easy. You’ll be able to see all of this data on our new web site, tx.markets. Wanting on the numbers, you may see that we have now a drop of seven% in revenues. Probably the most impression of the COVID was on JobCloud. However when you have a look at our friends around the globe after which additionally in Europe, we’re completely in line. So we’re not higher, however we’re not worse than the opposite one. So I am actually assured there that as quickly because the financial system will get well with all of the funding we did in digital recruitment and in new applied sciences, that we’re prepared additionally to develop once more and to come back again to the pre-COVID stage at JobCloud. Homegate was additionally impacted in spring, however recovered very quick. So we will see that in the intervening time, we’re, once more, on the identical stage than the pre-COVID, and that is why we’re additionally, there, very blissful. The spotlight is at Ricardo and Tutti. Ricardo has, in the intervening time, greater than 4 million registered customers. That is half of the Swiss inhabitants, and we elevated additionally the variety of transactions at about 31%. So a implausible and large development on secondhand and the financial — round financial system. After all, not solely that, so we invested additionally there in individuals and in know-how with a view to have the most effective platform for our clients. And eventually, at Automobile For You, our progressive automobile platform, along with our companion, AXA. We applied a brand new enterprise mannequin so that the sellers are in a position to promote automobiles digitally. They usually actually appreciated these new companies, and that is why now we have now 25 — nearly 25% extra sellers on the platform than in 2019. However general, we may be very blissful in regards to the improvement of the platform and the scenario at TX Markets. And I feel we’re completely prepared for 2021. Taking a look at 1 or 2 highlights on Web page 17. You’ll be able to see that at Homegate, we have now 20% extra classes than in 2019. At Ricardo, as already stated, 30% extra visits, 31% extra transactions. The identical at Tutti. So a really wholesome scenario. The funding we did in know-how are actually, right here, the outcomes of those KPIs development. Wanting ahead to 2021. So we have now 3 key tasks, to start with, inside TX Markets. As I already stated, we wish to strengthen our collaboration in numerous disciplines, information sharing, greatest follow sharing additionally, and have additionally frequent know-how with a view to be quicker and higher than we did until as we speak. At JobCloud, regardless of of the troublesome scenario in 2020, we glance very optimistic ahead, additionally at our — in Austria with Karriere.at, we’re invested there. I feel the beginning in 2021 is superb. And thru progressive recruitment know-how, we’re actually in a position to maintain and assist the businesses in Switzerland and in Austria to search out the appropriate individuals. And final however not least, the funding in start-up and M&A actions with a view to maintain our marketplaces with new applied sciences, with new enterprise fashions and to be actually state-of-the-art, I feel it is crucial there to be — to strengthen our portfolio and to strengthen additionally the know-how we have now inside the group. Total, 2020, very blissful and really pleased with our individuals. 2021, we’re thrilling actually to develop to — for additional development. And we had begin in January and February, and we’re completely on plan. And that is why I am completely assured that we are going to exceed our expectation sooner or later. Thanks very a lot, and I give now to the subsequent speaker, and I feel it is Michi Frank. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [7] ——————————————————————————– Sure. However Olivier first, we will have some questions for you. We’ll take questions after every speaker. To the viewers, do you might have any questions for Olivier Rihs? And operator, are you able to clarify ask questions, please. ================================================================================ Questions and Solutions ——————————————————————————– Operator [1] ——————————————————————————– (Operator Directions) Good. The primary man is Daniel Bürki from the Zürcher Kantonalbank. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [2] ——————————————————————————– I might have a query on JobCloud. Might you say how a lot of the gross sales decline in 2020? And what do you anticipate for ’21? As a result of unemployment goes up. We may be heading right into a recession. If you happen to might elaborate a bit of bit on JobCloud since it is your most worthwhile enterprise. ——————————————————————————– Olivier Rihs, TX Group AG – CEO of Tamedia’s Classifieds & Marketplaces Enterprise Phase [3] ——————————————————————————– Positive. If you happen to have a look at the Web page 17, you see right here the job of — the variety of listed jobs at minus 13%. And that is completely on line what we — to illustrate, we actually misplaced in income final 12 months. So nothing greater than the opposite friends in Europe. If we have a look at StepStone or when you have a look at additionally the development at Certainly, et cetera, we have now precisely the identical impact. So we had no churn in clients, completely not. They have been very blissful that we help them through the COVID final 12 months so that we have been very versatile additionally by the renewals of their packages, et cetera. So I feel now everyone is now anticipating, after all, of the restoration of the financial system. And we already see some enchancment, however we’re nonetheless on the identical stage than final 12 months. So I feel it is all about, to illustrate, the restoration of the financial system as a result of we’re prepared. And we additionally see, for instance, the digitalization of recruitment. It is — to illustrate, it is enhancing quite a bit — above all on the SMEs in Switzerland. So we see an increasing number of corporations reserving job listings on a digital means with our device. And that is one thing that provides us perspective additionally for the long run as a result of if persons are engaged on our instruments, they will even, to illustrate, use our entire companies. ——————————————————————————– Sandro Macciacchini, TX Group AG – Head of the Funds, HR & IR Division and Member of the Administration Board [4] ——————————————————————————– I can add one thing on the monetary aspect as a result of that is disclosed in Be aware 30 of the annual report. We disclosed the main subsidiaries with noncontrolling pursuits. And also you see there that we had a decline on revenues of round CHF 20 million, that’s 17%. ——————————————————————————– Operator [5] ——————————————————————————– At the moment, there are not any additional questions. ================================================================================ Presentation ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [1] ——————————————————————————– Thanks. I give the phrase now to Michi Frank, CEO of Goldbach. Michi, go forward. ——————————————————————————– Michi Frank, Goldbach Group AG – CEO [2] ——————————————————————————– Hey, everybody. Hello, it is Michi Frank. I am going to begin on the Web page 20 that you simply see that. And thanks a lot that I can current you the important thing figures for Goldbach in 2020. Goldbach has suffered a pointy decline in print promoting as a result of corona disaster. We had a troublesome scenario, however we nonetheless have some highlights to report. I am going now to the Web page 21. Community advertising was stepped up. Larger relevance in relation to giant worldwide corporations. Goldbach viewers has already built-in the community enterprise of the TX firm’s 20 Minuten, Tamedia and TX Markets. As well as, there are greater than 150 publishers that use Goldbach viewers to market their stock in numerous community merchandise. This permit entry to greater than 50 million profiles or over 90% of Swiss Web customers. We have now had Q3 and This fall. Even when we misplaced some market share in TV after a pointy decline in income through the first lock down, the TV gross sales goal was prolonged in Q3 and This fall. Nevertheless, it was not sufficient to make up for the campaigns that we misplaced within the spring. However we’re in a position to win 92 new clients for TV, and that, I feel, is a good consequence for us. Third-party advertising for Goldbach publishing was profitable. New nationwide and regional advertising tasks have been taken on. Instance for Switzerland are Freiburger Nachrichten, [WOZ Die], Der Bund, Journal De Morges, Worldwide Advertising of the (overseas language). The variety of titles in third-party advertising rose from 3 to 21 in 2020. Within the second half of the 12 months, the revenues of the Sunday papers have been up significantly on the earlier 12 months. That is for us, an incredible story. Neo Promoting as our out-of-home digital advert dwelling firm in Switzerland. Growth of the portfolio in 2020 was 2,445 new promoting areas on the market. Now I am going to the Web page 22, our most necessary tasks in ’21. Replay advert portal. That is actually — by the purpose 1, it is actually necessary for us. The replay and advert portal base on on-line know-how, an expansion that transcends one of the crucial progressive platforms within the Swiss media market. bringing TV and internet marketing codecs nearer collectively. Community advertising. As a Swiss digital community, the aim of Goldbach Viewers is to realize the very best high quality attain in video, in-stream and out-stream and show. With greater than 150 publishers, we now generate 175 million video views per 30 days. Nearer cooperations with TX Markets that enhance asset high quality. We wish to supply a Swiss different to the main multimedia companies, means the GAFAs. Cross-media companies, level 3. Our advertising is 360-degree and we intention for elevated cross-media promoting of this vary. On this context, we requested our clients what they need. That is a very necessary level as a result of we’re listening to what they are saying to us. We’re, due to this fact, engaged on constructing a web-based foreign money throughout media, video foreign money, and we’re within the [pre-oaths] of constructing a panel to measure KPIs throughout all media. We’re planning 2 giant cross-media provides this 12 months. Now the primary is beginning within the japanese time, and the second greatest is within the Christmas time. You see there are loads of new data, new concepts, and I am completely open-minded for ’21. We’re nonetheless in a disaster modus, however the shoppers work with us. And we see, for the second quarter, actually an even bigger good outcomes for ’21. Thanks a lot. That was my verse. Please questions or one thing. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [3] ——————————————————————————– Thanks, Michi. Do we have now any questions for Michi Frank? ================================================================================ Questions and Solutions ——————————————————————————– Operator [1] ——————————————————————————– (Operator Directions) Andy Schnyder from zCapital is the subsequent one. ——————————————————————————– Andy Schnyder, zCapital AG [2] ——————————————————————————– I’ve a query on the TV. I’ve a query on the TV market. Have you ever had good bookings now for H1 which you can report on? And do you see any sort of shift away from TV? As a result of we have seen that with print up to now, within the disaster, they misplaced loads of advert quantity, which by no means got here again as a result of individuals switched to different mediums, primarily the Web. And do you see or anticipate some sort of shift occurring additionally in TV now to on-line or not? ——————————————————————————– Michi Frank, Goldbach Group AG – CEO [3] ——————————————————————————– Andy, the nice story is absolutely that what I confirmed you within the quarter 3 and 4. We noticed, in 2020, when the disaster a bit of bit go down, we had no extra lockdown that the shoppers comes again. As a result of the attain of TV is absolutely nonetheless right here. That is the very first thing. And the second factor, what we see now, nonetheless, we have now a lockdown. However what we noticed and even what we see particularly within the Q2 in ’21, the shoppers say, okay, when the lockdown goes again, we’re nonetheless right here and we can’t make investments loads of them. And the second factor is absolutely that, that we’re constructing new concepts, new apps for the stock. It means within the mixture, on-line and TV. Which means additionally the brand new measurement ID, what we have now for the KPIs. And we imagine in that the mix, TV and video, that is the long run on this goal. And we see that this mixture goes nice. However that is actually the one level. And we see another on the time, TV remains to be right here in the appropriate means. ——————————————————————————– Andy Schnyder, zCapital AG [4] ——————————————————————————– Okay. Good. After which I had a query on the titles you marketplace for different publishers. Is that this simply a part of their enterprise? Or are we simply speaking about on-line? Or what are we speaking about right here? ——————————————————————————– Michi Frank, Goldbach Group AG – CEO [5] ——————————————————————————– That is part of them as a result of that is not an unique enterprise. As a result of our thought was actually that after that, the general public group was going out of the market. There was no one right here within the interim. I feel that is our thought to deliver that collectively. All of the publishing enterprise in on-line, however on, nonetheless, within the older — within the print half additionally. And the thought is there’s actually one face to the client. The shoppers solely speaks with 1 particular person in regards to the [ISD] and in regards to the new stuff for the long run. After which we will deliver that collectively, that the shoppers and the companies see that we have now right here one face to the client, and that is a grand thought what we have now. However that is nonetheless so, they’re operating, in probably the most half, within the area their selves. And for the nationwide half, the mix is in our fingers. ——————————————————————————– Andy Schnyder, zCapital AG [6] ——————————————————————————– Okay. Good. I suppose that is — of the CHF 155 million in revenues, that is, as we speak remains to be a somewhat small half, however might doubtlessly grow to be a lot larger? ——————————————————————————– Michi Frank, Goldbach Group AG – CEO [7] ——————————————————————————– I am completely certain that have to be as a result of we have now — I imagine in them completely. We now have the most effective content material right here in Switzerland collectively. Collectively, it means we will open them. And that is additionally the story. We try this along with the opposite guys too, and we should have a approach to go and combat with the fellows from the GAFAs. And that is actually the story as a result of we have now the content material, and now we should — the content material herald the appropriate targets. ——————————————————————————– Andy Schnyder, zCapital AG [8] ——————————————————————————– And final query on that. Do you get any backlash from the massive media companies as a result of normally, they might help their shoppers with reserving workers everywhere in the nation. However when you try this for them, they do not want a media company anymore, So for that half — and also you grow to be a competitor of the media company, which would not be that good, I suppose, however most likely you may touch upon that. ——————————————————————————– Michi Frank, Goldbach Group AG – CEO [9] ——————————————————————————– Look, that is not our means. We’re, in as soon as, the content material consumer home. And we’re, as a aim, we’re the stock guys. And that is the explanation. Which means it comes from the appropriate aspect, from the content material, goes on the left aspect to the shoppers, to the media companies, and that is an ecosystem the place we work collectively. Our thought is, actually, to promote our stock. That is our means, not entering into competitors with the media company. That is not our means. ——————————————————————————– Operator [10] ——————————————————————————– And we have now no additional questions for now. ================================================================================ Presentation ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [1] ——————————————————————————– Thanks, Michi Frank. Have a pleasant day. I give the phrase to Marcel Kohler, CEO of 20 Minuten. Go forward, Marcel. ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [2] ——————————————————————————– Sure. Good morning, everyone. My identify is Marcel Kohler, and I’ll attempt to offer you a brief overview in regards to the newest information regarding 20 minutes. If you happen to go on Web page 24, you see perhaps crucial information within the headline of this primary chart. We’re within the black regardless of downturn in promoting income and the dearth of commuters. We reached a consequence, EBIT adjusted of CHF 12 million. That is far a methods from CHF 39 million final — in 2019. However however, we see it as a affirmation of the power of the enterprise mannequin of free paper in Switzerland and likewise in Austria and Luxembourg and Denmark. Tough instances are good instances to take selections and to deliver necessary tasks to the bottom. That was precisely that, what we made. I wish to converse in regards to the improvement of recent distribution channels within the retail sector. Within the print, we’re beneath strain. That was a profitable motion. And already as we speak, I can announce that we are going to deliver extra information regarding our distribution within the freight. In April final 12 months, we launched our new cell app. We have been in 2008, 20 minutes was the primary information web site that had a cell app on this nation. And within the meantime, within the final 12 years, we had, within the German a part of Switzerland, 4.8 million downloads, and within the French half, there have been 2.5 million downloads. We had a profitable launch of the video marketing campaign with 20 minutes now. We’re fairly proud about that product. It reveals no one else has one thing like that. Internally, we talk about it is the cell goal present for younger individuals. Our digital use is on a excessive stage, I’ll talk about within the subsequent chart. And what was additionally crucial, we established our personal video and picture company whereas we did that. As a result of we stopped the first of January, our collaboration with SDA and Keystone. And after 10 weeks, I can say, it was choice. You probably have a glance on the — on Chart 25, I can say we’re on an all-time excessive within the readership, not within the print. We’re beneath strain. However within the on-line, we have now a robust development. Perhaps I can say some phrases. So the go to you see the expansion of 39%. What’s behind these figures? Behind these figures in Switzerland is that we attain — we get, each month, greater than 180 million visits. Which means greater than 6 million visits per day on this small nation. What are our key tasks in 2021, you see that on Web page 26. First, I wish to talk about — brief in regards to the creating of a circle of specialists and introduce high quality and so forth. Tamedia already does that since, I feel, about 5 years. And we’ll try this additionally with a particular view on free media. An important mission this 12 months is to increase French-speaking Switzerland. Final Monday, we celebrated the fifteenth birthday of [20 Minuten] in Lausanne and in Geneva. In these 15 years, we reached the #1 place. However however, we see extra potential. That is without doubt one of the explanation why we create 20 new jobs. And the second cause is — that’s our reply to the brand new competitors in Lausanne — in the environment in Lausanne and Geneva. And eventually, we imagine in our attain mannequin. We now have to do all the things that we will get and even to develop our attain. And what we’re doing is we make investments extra within the video. Within the German half, as we speak, there are about 1/3 of our journalists work for video, and we will even improvement our audio actions. And an necessary level, it is not on this chart, however I am proud to talk about that, yesterday, we introduced our new running a blog three way partnership with one other media home. And we see, within the first 24 hours, we had about 1,200 new registrations, which is kind of good figures, and we’re trying ahead additionally on this course of. That is it. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [3] ——————————————————————————– Thanks, Marcel. Do you might have any questions for Marcel Kohler? ================================================================================ Questions and Solutions ——————————————————————————– Operator [1] ——————————————————————————– (Operator Directions) Okay. Andy Schnyder, once more, from zCapital. ——————————————————————————– Andy Schnyder, zCapital AG [2] ——————————————————————————– Sorry, I had it on mute. So I might have a query on the revenues for the totally different PC versus cell versus print. After all, print revenues have — are down, no shock. However are you able to speak about on-line revenues and cell revenues? Have they each been up in 2020? ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [3] ——————————————————————————– All in all, the digital revenues have been about secure. Within the digital, the revenues of the movies that we had a robust development of about 35%. Within the final 4 years, I can provide you an instance. We now have — within the video, we had a couple of development of 400%. ——————————————————————————– Andy Schnyder, zCapital AG [4] ——————————————————————————– Okay. So its secure versus… ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [5] ——————————————————————————– It is the long run on your media, sure. ——————————————————————————– Andy Schnyder, zCapital AG [6] ——————————————————————————– And I am unsure when you try this calculation, however what is the print enterprise itself? Was that loss-making or simply not producing any earnings anymore? However — or was it nonetheless worthwhile however simply in a a lot decrease stage? ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [7] ——————————————————————————– We — within the final 2 years, we hadn’t the figures in print and on-line. We’ll do it once more in 2021. And what I can say is that ours is a transparent revenue additionally in print and I am fairly optimistic that we are going to attain that. However after all, to be clear, we — and that is additionally a excellent news. We’re 100% financed through the promoting market, and we do about — greater than 60% of our earnings comes through digital. It is — some years in the past, it was 70-30 for print. And as we speak, it is 60-40 for on-line. ——————————————————————————– Andy Schnyder, zCapital AG [8] ——————————————————————————– Okay. Good. Good. And the final query, extra a structural one. As I’ve requested Michi earlier than, disaster can normally additionally set off a structural change. And doubtless you might have accomplished the train of evaluating mobility knowledge in Switzerland versus your variety of copies that the individuals took out of the bins. And doubtless you might have seen that after the disaster, despite the fact that mobility got here again up to now few months, the circulation shouldn’t be identical because it was earlier than. Have you ever seen one thing like that? Or is it simply again to regular with the decrease stage we have now as we speak? ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [9] ——————————————————————————– The decrease stage within the print distribution? ——————————————————————————– Andy Schnyder, zCapital AG [10] ——————————————————————————– Sure. Print. Print. ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [11] ——————————————————————————– Sure, we had — probably the most troublesome months have been March, April and Could final 12 months. Then we got here again to about 90% within the month of October and November. And naturally, the brand new lockdown, we’re struggling final week, we have been precisely on the 80% of the distribution within the second week of March 2020. We’re at — on the extent of 80%. ——————————————————————————– Andy Schnyder, zCapital AG [12] ——————————————————————————– Okay. Sure, that is mainly the place mobility plus/minus is. Sure. Is sensible. ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [13] ——————————————————————————– It is — when you talk about mobility, we — after all, we’re in shut contact to the [SPD]. And they aren’t at 80%. That is the information I’ve. However as I stated, we created new distribution channels on the [REIT]. And that is the explanation as a result of we — our distribution is larger than the numbers of commuters within the prepare. ——————————————————————————– Operator [14] ——————————————————————————– Daniel Bürki is the subsequent questioner from the Zürcher Kantonalbank. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [15] ——————————————————————————– I might have a query on profitability at 20 minutes. You stated that you simply managed to get to return into the black numbers within the second half, robust — very robust rebound regardless of gross sales didn’t come again. So did you might have some additional measures there? Or how did you handle to enhance profitability within the second half a lot? ——————————————————————————– Marcel Kohler, 20 Minuten AG – Director [16] ——————————————————————————– Sure. There are the traditional measures. First, we have been — within the gross sales, we had development, a robust — not a development in contrast with 2019, however in contrast with the primary half. And naturally, that the custom at 20 minutes, we’re — we have now a robust price focus and we made safeties wherever we might. And we have now the expansion market and I feel it is an necessary choice we took in 2016. We make investments quite a bit within the — a giant construct within the video. I already spoke about 20 minutes now. And it turns into it turns into a considerable a part of our income and a really substantial a part of our digital revenues. ——————————————————————————– Operator [17] ——————————————————————————– At the moment, there are not any additional questions. (Operator Directions) No additional questions for now. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [18] ——————————————————————————– Thanks, Marcel. I am going to give the phrase now to Marco Boselli and Andreas Schaffner, CEOs of Tamedia. Please, Marco and Andreas, go forward. ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [19] ——————————————————————————– Hello, everyone. That is Marco Boselli talking first. I am Co-Managing Director, along with Andreas Schaffner of Tamedia. That is the paid media unit of the TX Group. And please permit me some preliminary remarks. 2020 was a very difficult 12 months for us, nevertheless it was additionally actually thrilling. Difficult, after all, as some other media home worldwide, we’re strongly hit by the COVID disaster concerning our revenues. And the opposite factor we needed to study to handle our actually complicated construction and all of the totally different tasks we have now in direction of digital information unit. We had all the things out-of-home workplace primarily, and that was actually difficult, however thrilling. It was additionally, as a result of we noticed how robust the curiosity of our customers was in high-quality content material, we had superb visitors over the past 12 months. And on the opposite aspect, which was actually level in 2020, that we have been in a position to rise our digital subscriptions. So persons are involved in our content material, they usually able to pay for it, which we’re actually blissful about. If you happen to permit me to undergo the chart, on #28. You see what I used to be speaking about. The revenues dropped considerably in 2020, 14%. And on the finish, we have been actually blissful that we managed to be within the black figures on the finish with CHF 9 million. However when you see the earlier 12 months, it’s also fairly a dramatic lack of 74%. On the content material and the product aspect, in 2020, we fully modified in direction of our street to a mobile-first group, which, for Tamedia is absolutely — it was a breakthrough. That signifies that we publish all our content material, digital-first. After which in direction of making newspapers out of it. That is actually — this was loads of work to get there. However when you see on the subsequent chart, our digital subscriptions developed within the final 12 months. That is the one means we’ll work sooner or later. On the opposite aspect, we all know that COVID was an exception in some way, we hope, at the least. However on the opposite aspect, we all know that we have now structural issues within the paid media sector. We lose yearly in print promoting. We lose additionally in subscriptions. And for that, we have now to verify that the evolution by a heavy cost-cutting program, which we introduced in 2019. We’ll go down with our prices within the quantity of CHF 70 million till on the finish 2022, which is about 15% of our general price. So the excellent news I used to be talking about. You see them on Web page 29. Within the graph on the left aspect, if we speak about subscription numbers, you see we had — we might acquire 3%, which signifies that we have been in a position to overcompensate the lack of print subscriptions by the expansion in digital subscriptions, which you see on the second graph. We grew 43% in digital subscriptions within the 12 months 2020. If we speak about cash, you see that this overcompensation in numbers, you do not see that in cash. Which means we misplaced 2% in our consumer market income. After all, the reason being that the online worth of a digital subscription is way decrease than with the print subscription. And as already talked about, the promoting market that was actually robust hit we had within the final 12 months. We misplaced 24% in — primarily in print — within the print promoting market. Andreas, perhaps our key tasks for 2021. ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [20] ——————————————————————————– Thanks quite a bit, Marco. That is Andreas Schaffner, Co-Managing Director for Tamedia, along with Marco Boselli. Hello, everyone. So I am on Slide 13. In order you might have seen, there are a number of difficult scenario and developments we have confronted up to now. However as nicely, if we glance sooner or later, so we’re specializing in 3 important axis for altering issues in the appropriate means. To begin with, we’re reviewing and adapting the editorial ideas within the groups of the main 2 areas, Zurich and Berne. We attempt to preserve, and we’ll preserve our model variety in Berne and Zurich, whereas we enhance attractiveness for the readership, and in parallel, realizing synergies inside this group. The way forward for journalism is digital. That is clear and certain. So what are we doing for the digital transformation, what will we make investments on this transformation for the long run? To begin with, we’ll develop the competencies to extend attractiveness of our content material. So it turns into extra digital and extra fascinating for the reader. Then the second funding we do on a [similar] mission we’ll work on is higher market our digital merchandise, how we will attain new readers and produce them to pay for our subscriptions. After which a 3rd step, we have now to take a position closely in know-how. We’d like some know-how change to be quick sufficient on this market setting for digital. Regarding print markets, the print market, we consolidated within the final years, a number of instances. We built-in different printing merchandise in our printing crops. This consolidation is basically over, and we now have to make sure that our newspaper will proceed to have the bottom unit price for the long run as they’d it already up to now. And so we can pay much more consideration to synergies between our printing plans. So these are the fundamental traces of our tasks, and we’re satisfied that with this and with the CHF 70 million, Marco already talked about, we’ll create a base for a sustainable future enterprise. And now I hand over to Patrick Matthey. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [21] ——————————————————————————– Thanks, Andreas and Marco. To the viewers, do you might have any questions for them? ——————————————————————————– Operator [22] ——————————————————————————– Daniel Bürki is the primary one. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [23] ——————————————————————————– It is me once more. I might have a query concerning your cost-cutting drawback at Tamedia, the CHF 70 million you intend until finish of ’22. How a lot of this did you understand already in 2020? And the way huge are the restructuring prices you anticipate out of this cost-cutting program? Simply to get a taste a bit of bit, how a lot of the CHF 70 million will actually circulation by means of to the underside line? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [24] ——————————————————————————– Perhaps I can begin, Andreas, after which you may choose up. We do not speak about how a lot cash we already saved in 2020. However what we will say is that part of this will even come out of the group, which had introduced additionally a restructuring program final 12 months. And we, as a shopper of the group, we can pay much less for the companies that come out of the group. That is already fairly a giant a part of these CHF 70 million. After which, after all, the restructuring we introduced this 12 months shall be in collaborating higher within the areas the place we have now multiple title with that is the area of Zurich and the area of Berne. This can be a double million determine. We’ll save to find synergies. And in the long run, after all, all these CHF 70 million ought to go within the backside line, after all. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [25] ——————————————————————————– However — sorry, you had already some financial savings in 2020? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [26] ——————————————————————————– After all, sure. ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [27] ——————————————————————————– For certain, it is a part of the financial savings coming from the group prices. ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [28] ——————————————————————————– Simply to be — beside on that, we anticipate that round CHF 8 million comes out of the decrease group prices. That is — there — this CHF 8 million, once more, is a part of the CHF 20 million cost-cutting which I introduced. And there may be an on-road map and this shall be accomplished in 2023. So the calculation, it is accomplished, nevertheless it’s not the cost-cutting itself. That is to be seen simply to make it exact. ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [29] ——————————————————————————– Okay. A query about price for social plans, et cetera. So we — to start with, we’re actually unhappy that we have now to scale back various staff for the long run, however we will not keep away from this. And because of this, we’re in negotiation with a companion — social — individuals from the highest, which sort of social plan is required. Till now, we haven’t any outcomes. We imagine we shall be round what we have now up to now, maybe a bit of bit higher. However till we have now signed this — or finalized this negotiation. We won’t say something for its measurement. That is on one hand. However, it is a main aim for us is as nicely to scale back our variety of staff by individuals leaving the corporate with out — that we have now to — or lengthen by our — from our aspect. So general price, we will not give any determine now. ——————————————————————————– Operator [30] ——————————————————————————– The following query is by Andy Schnyder from zCapital. ——————————————————————————– Andy Schnyder, zCapital AG [31] ——————————————————————————– I’ve a number of ones. First on the printing amenities. Are you able to discuss in regards to the utilization of the amenities, most likely not — 2020 might be not the appropriate 12 months to have a look at, however what do you anticipate in 2021, the place are we at? ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [32] ——————————————————————————– The three — all 3 printing facilities are 100% occupied throughout evening shift. This is kind of the main cause why that is a printing facilities. And through the day shift, we have now some discount of — how do I name it, of titles since there are — primarily on [SonntagsZeitung]. They diminished the variety of points they do through the week. So — however the main and crucial a part of our revenues is the manufacturing throughout evening shift. And there, we’re 100% occupied on all 3 crops. ——————————————————————————– Andy Schnyder, zCapital AG [33] ——————————————————————————– Okay. However that signifies that with the day shift, not being at 100%, I suppose, a number of years in the past, they have been additionally fairly excessive, most likely not 100%, however fairly excessive. The general profitability, which was fairly good on the printing amenities at one level is somewhat barely coming down. And I suppose there are loads of mounted prices. So you may actually cut back the prices you might have that a lot with decrease volumes, proper? ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [34] ——————————————————————————– We now have — a giant half is our mounted prices. Occupation throughout day shift up to now — or for printing facilities, occupation throughout day shift may be 100%, for the reason that market, already, for the evening shift, symbolize 50% of the amount of the market. And the evening shift, it is about 5 to six hours, will imply the opposite 18 hours won’t ever have an occupation from 100%. No printing middle, newspaper printing middle throughout in Europe or all through has 100% occupation throughout day shift. So what are we doing is, by flexibility of utilizing the human capital personnel, flexibility and to shift plans to fret about — understand our prices as far we will go. And sure, for the long run, we have now to consider if — we want for the subsequent years, for certain, all 3 printing facilities to supply throughout evening shift. It is a query we have now to reply is, if we keep in all 3 printing facilities throughout day shift as nicely in manufacturing. There, we have now a chance to consolidate and to extend effectivity within the remaining day shift within the different 2 facilities. However there isn’t a choice and there’s no plan for proper now. ——————————————————————————– Andy Schnyder, zCapital AG [35] ——————————————————————————– Okay. Good. And by way of revenues, this CHF 470 million, how a lot of that’s consumer market income? What share? Roughly 60? 60-40? Or the place are we at? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [36] ——————————————————————————– It is about CHF 242 million. ——————————————————————————– Andy Schnyder, zCapital AG [37] ——————————————————————————– CHF 242 million. So — sure. Roughly 50%. And the… ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [38] ——————————————————————————– That is income for subscription, Marco? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [39] ——————————————————————————– Sure. Sure. Precisely. ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [40] ——————————————————————————– Sure. ——————————————————————————– Andy Schnyder, zCapital AG [41] ——————————————————————————– Sure. And from the whole subscription income, this CHF 242 million, how a lot of that’s digital-only? I suppose it is nonetheless solely most likely 10%? Or what sort of stage are we coping with about right here? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [42] ——————————————————————————– It is about 10%, sure. ——————————————————————————– Andy Schnyder, zCapital AG [43] ——————————————————————————– 10%. Okay. Good. And concerning the promoting market income. It is, once more, a bit of bit the identical query I requested earlier than in regards to the structural shift. Up to now, within the printing promoting revenues, they did not come again after a disaster. Do you anticipate this income to develop, absolute development in 2021? If you have a look at your first few months now, are we — or might we be above the extent we had in 2020? Or will it keep on that stage, however most likely not through the 10% we normally have, however most likely simply 5% this 12 months? Or what’s your expectation there? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [44] ——————————————————————————– The expectations we mentioned additionally, after all, with Goldbach is that it is going to be — the structural loss will go on, after all, however we’ll return on the extent earlier than COVID. So we do not — most likely, we do not stand from the… ——————————————————————————– Andy Schnyder, zCapital AG [45] ——————————————————————————– Okay. So the nice assumption then could be, take 2019 stage after which minus the most likely 15% or 10%, one thing like that? ——————————————————————————– Marco Boselli, Tamedia Publications romandes S.A. – Head of Paid Media [46] ——————————————————————————– 10% to 12%, sure. Between 10% to fifteen%. It relies upon if it is a nationwide or a regional newspaper, sure. ——————————————————————————– Andreas Schaffner, TX Group AG – Co-director Tamedia (Publishing Providers) & Member of the Administration Board [47] ——————————————————————————– Simply so as to add in your query concerning the publishing consumer market income and the digital share of it. I do not know if I perceive — I understood the query appropriately, however on Slide 10, we disclosed that, that round 26% is digital on this consumer market income. And consumer market income is, by definition, publishing and due to this fact, Tamedia. ——————————————————————————– Operator [48] ——————————————————————————– Okay. At the moment, there are not any additional questions. ——————————————————————————– Patrick Matthey, TX Group AG – Head of Communications & Public Affairs [49] ——————————————————————————– Thanks, Marco and Andreas. ——————————————————————————– Operator [50] ——————————————————————————– Might you repeat that sir. I feel we did not hear you. It might be that you simply’re nonetheless muted, perhaps. Perhaps you must unmute your telephone. ——————————————————————————– Samuel Hügli, TX Group AG – Head of the Expertise & Ventures Division and Member of Administration Board [51] ——————————————————————————– I feel we’re ready for the moderator, proper, to introduce… ================================================================================ Presentation ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [1] ——————————————————————————– That is Pietro talking, Sam, simply take over and run us by means of Company & Ventures. ——————————————————————————– Samuel Hügli, TX Group AG – Head of the Expertise & Ventures Division and Member of Administration Board [2] ——————————————————————————– Okay. Will, do, thanks. So I am going to hurry up so that no one else goes to overlook one other name. So I am going rapidly by means of the final 3 pages, so we begin on Web page 33. That is the general view of company, which incorporates the ventures actions. It is a bit troublesome to learn the graph as a result of it is like a conglomerate of inner companies, HR, finance, controlling, authorized in addition to ventures actions. And right here, I might focus extra on the ventures actions. We had a really busy 12 months in ventures this 12 months. We offered a bunch of corporations. We offered Starticket, which was a really, very fortunate sale at first of the 12 months, when you look again what number of occasions that occurred. So we have been very fortunate that we have been in a position to promote this firm. Nevertheless it was not an opportunistic sale, it was a strategic sale as a result of we stated we wish to give attention to 2 ecosystems. We stated 2 in Doodle, and we wish to create a brand new search discipline with fintech, so we attempt to intention all our investments in these instructions. That is why we offered Starticket. We offered Olmero, the digitization firm for the development business. And likewise Renovero the B2C a part of Olmero. We have additionally accomplished 2 new investments this 12 months, one funding did go into Selma, which is a digital advisory for the youthful technology who wish to make investments their first cash into shares, into 3, 8 pillars or no matter it’s. Plus, we invested into lend.ch, which is a peer-to-peer lending platform for personal individuals in addition to for corporates. This 12 months was notably busy for the company setting as a result of, as you might have heard earlier than, we needed to go forward with this inner mission named K2 which is a resizing mission after which a rebalancing mission within the view of the brand new setup of the group. So we lowered the fee. We had a program to decrease the fee roughly to (inaudible) — or in thousands and thousands, it is about CHF 20 million. We’re in good progress with this mission. As Sandro simply talked about earlier than, that is going to conclude finish of ’23. So it’s kind of of a long-term mission, which additionally consists of some investments into IT methods to scale back workers on the finish of the day. I change to Web page 34 (sic) [Page 33]. Right here, you might have a bit of little bit of a highlighting of two particular conditions with Doodle and Zattoo. I might see the two corporations completely as winners of this COVID scenario. If you happen to tackle the left, Doodle, they have been in a position to enhance revenues by 54%, even throughout that downturn inside the very, very strategic subscription module. The advert module suffered. In order you may see on the decrease a part of the web page on Web page 34 (sic) Web page 33 , there was a discount of about 22% of general, like, visitors and what — the free customers that went down 22% as a result of there was merely nothing to be organized on this COVID and residential workplace scenario. So we suffered on one aspect, however on the identical time, we centered on the strategic grow to be this subscription financial system. So we have been in a position to produce a pleasant development on that, and we plan to double it once more subsequent 12 months. I’ll come again to that on the subsequent slide. With Zattoo, the leisure firm and the streaming firm, we had seen implausible progress additionally on the aspect of the B2B market. Right here, we have now been rising 36% this 12 months. We marked new excessive ranges on mainly all enterprise traces inside the device and likewise the B2C market that the non-public finish customers, we have been in a position to develop these subscriptions by 10% over the past 12 months. So we’re very happy with the event of those 2 anchor investments inside the Ventures portfolio. And we are also very happy with the event of our fintech clusters, primarily our Swiss app-based financial institution, the Neon financial institution is doing notably nicely. You may need seen the numbers rising there from starting of the 12 months, like 20,000 as much as greater than 50,000 on the finish of the 12 months. If I am going and soar on the final web page, Web page 35 (sic) [Page 34] The important thing tasks, the important thing issues we’re engaged on is actually to push the natural development for our anchor funding inside the enterprise division, it is Zattoo and Doodle. We plan to double revenues over the subsequent few years at Zattoo. We plan to double the subscription numbers at Doodle inside the subsequent 12 months. So that means a month-to-month development price of about 6% inside the subscription quantity of Doodle and we’re nicely on monitor to get that accomplished. So the midterm intention within the subsequent 12 to fifteen months is to succeed in about 10 million ARR for this new platform that we developed. Second focus level is actually the TX knowledge platform. This can be a entire program, a complete method to be data-driven. And we use that knowledge to counterpoint merchandise, to create merchandise. We use it to counterpoint transactions and to make it simpler for the customers to transact with us. We make it straightforward to create a log-in that’s customizable for what the consumer wants are. As you might have heard, we simply introduced yesterday that we began three way partnership along with one other huge media group in Switzerland, plus one other bunch of media teams becoming a member of us later with that. There, we created a very new log-in, that has allowed fingerprint log-ins, permits face log in. So it is actually, very easy to locking into 20 minutes sooner or later. Plus, we have now a implausible weapon with the TX knowledge platform for the approaching world that’s cookie-less, that Google and Apple tries to dominate by way of privateness wars. And we — the one means for us is to not depend on third-party cookies, however to depend on first-party knowledge. To should log ins with these finish customers, and we’re nicely on monitor with that as nicely. Final however not least, we proceed our investments in sure areas, primarily — the principle focus would be the fintech space for my aspect, plus the Classifieds space for Oli Rihs. So we have now a shared funding committee that we constructed up through the starting of 2021. It is chaired by Romy Schnelle. She is the Managing Director on the Excessive-Tech GF, Excessive-Tech Gründerfond, or Founder from in Germany. So we employed her and she or he’s serving to us to construction these offers, and we get the utmost return over the subsequent few years with these early-stage investments that actually pose positively huge dangers, but additionally huge alternatives. And we attempt to be a kind of teams who’s benefiting from the market proper now. We see that sort of traditionally, with among the fluid capital shouldn’t be coming again as rapidly as any individual thought, some individuals thought on this market. So actually some alternatives for us right here. That is it from my aspect. Open for questions. ================================================================================ Questions and Solutions ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [1] ——————————————————————————– Thanks, Sam. So that is Pietro once more. As we’re nearly operating out of time. I hope that these displays have been insightful for you. You would see that we’re actually broadly diversified. We face challenges, each of structural nature in addition to given to the continued disaster, however we’re very well positioned. I hope you could possibly additionally recognize the standard of our administration group, and the position of the group is absolutely to assist them function at above-average ranges for Switzerland. And I feel it is necessary to notice that Switzerland is a small nation. Subsequently, we face the query of essential mass for every of our companies, and that is precisely the place the group is available in to assist our corporations to obtain company companies at aggressive prices, higher than in the event that they must do it themselves or in the marketplace. And likewise to function at larger ranges. Cybersecurity, being an excellent instance for that and likewise the information matter that Sam has touched on, and that’s actually one in all our important axis of improvement to counterpoint the information lake that we have now and to drive worth out of it for the event of our companies and merchandise, for the sale of our companies and merchandise after which additionally for the worth we will supply to our promoting shoppers. Now we have now a few minutes for questions you may need on the group stage. ——————————————————————————– Operator [2] ——————————————————————————– Okay. We now Andy Schnyder once more. ——————————————————————————– Andy Schnyder, zCapital AG [3] ——————————————————————————– Sure, this can be a query for Samuel, but additionally most likely on a bunch stage. Concerning the ventures and the way forward for new ventures, new investments. That is not me. ——————————————————————————– Operator [4] ——————————————————————————– I am sorry, that was among the audio system. ——————————————————————————– Andy Schnyder, zCapital AG [5] ——————————————————————————– Okay. So concerning future investments into new ventures. First, so most likely, Samuel, I might have an interest within the discipline you’re looking at. How’s it to be — how is it to have a Swiss context? And what are the principle criterias you have a look at if you put money into one thing. After which most likely one thing — a query for Pietro, concerning the scale of the investments, how a lot firepower do you give to put money into ventures? ——————————————————————————– Samuel Hügli, TX Group AG – Head of the Expertise & Ventures Division and Member of Administration Board [6] ——————————————————————————– So I’ll begin from my aspect. That is Sam once more. So the search fields we outlined is the Doodle and Zattoo ecosystem. So right here, we primarily need natural development. We wish to drive development. And if there’s a small add-on that’s rushing up the expansion trajectory, we might have a look at it. Nevertheless it needs to be by means of Doodle or by means of Zattoo. So it is not an open search discipline. We actually give attention to these 2 corporations. After which we have now a 3rd search discipline that is a little more broadly outlined that is named a fintech ecosystem. Right here we have now proper now a bunch of investments. We now have Neon Financial institution, we have now Lend, we have now Selma. There is a small funding in Lykke, so is Monito. And together with it, we will additionally point out MoneyPark, the place we have now a small shareholding. So this can be a bunch of corporations, and we’re on the lookout for early-stage investments, normally. We’re on the lookout for ticket CHF 0.5 million to CHF 2 million, CHF 3 million, one thing like this. It should have a robust connection to Switzerland. So it is both primarily based in Switzerland or it is coming into Switzerland. We will attempt to construction offers. We assist them set up their path into Switzerland. So at all times a robust connection to Switzerland, and it ought to be capable of leverage the information that we have now inside our group. So that’s typically a cause for them to affix us or to come back to now a bit of bit, not simply the cash itself. It is the sensible cash that we have now knowledge, we have now take, we have now usability specialists, we have now M&A specialists. And we have now a bunch of specialists in our group that they typically do not have of their small startups as a result of they actually attempt to scale as rapidly as potential. So they do not have all these specialists. So we have now a really good ecosystem for that. And perhaps the query of how a lot cash we have now obtainable, this can go to Pietro. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [7] ——————————————————————————– In order Sam has stated, our precedence for your entire group is natural development. We now have, as you might have seen, optimistic money place for accelerating development general by means of acquisitions and that we wish to make investments primarily in our 4 enterprises. And for the Ventures arm and there, particularly, the early stage investments, the funds we have now is CHF 10 million per 12 months. ——————————————————————————– Andy Schnyder, zCapital AG [8] ——————————————————————————– Okay. Okay. And even within the disaster years reminiscent of 2020, you made fairly a good — fairly money circulation, free money circulation. And you’ve got low funding. So there may be loads of money generated. You are not paying a dividend. I can perceive that. Within the circumstances, you are at all times within the public eye. So it is most likely not a wisest factor to do. But additionally up to now, you shied away from growing your dividend payout, I feel, I suppose. And you could possibly most likely reply that. The household shouldn’t be actually involved in a a lot larger dividend, which might actually be paid out. So trying on the market, you might have already consolidated what may be consolidated. Or appropriate me if I am incorrect, I do not see any huge targets, which might be acquired right here in Switzerland anymore. So the money will pile up. It’s piling up, and it is going to be additional pile up. And the ventures are usually not doing the distinction of the CHF 10 million. So what are you going to do with the money? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [9] ——————————————————————————– So to start with, after all, the household is within the dividend. And I suppose, along with all different shareholders. And it’s true that we have now to watch out in our — with our dividend coverage, given the context we function in. However it’s our clear aim, as I’ve said within the editorial, to our annual report back to return to ranges of dividends we have now seen earlier than. Roughly, we have now paid out 1/3 of our positive aspects up to now and reinvested 2/3. That amounted to CHF 350 million for the 12 months 2019. And the years earlier than, we have been round CHF 450 million. We intention to get again to these ranges. After which, after all, we have now to assessment the dividend coverage and to see whether or not we might even go to larger ranges. That is determined by how nicely we’ll now get by means of that disaster and get well. And likewise, it is determined by how we will grasp the digital transformation of our companies. And there, we foresee that we we’ll be doing giant investments sooner or later if M&A alternatives will come up as we have now accomplished up to now. For instance, Ricardo, that has developed very, very nicely within the final 12 months or JobCloud earlier on. And we imagine that the transformation the business as a complete goes by means of, will deliver up alternatives for an natural development, for which we’re ready and through which we wish to make investments our money. If we won’t encounter such alternatives or will be unable to understand them, then, after all, we’ll distribute the money within the years to come back. ——————————————————————————– Andy Schnyder, zCapital AG [10] ——————————————————————————– And I see the web investments, however trying on the market moreover most likely [Comparis] I do not see any enormous targets, which might actually price quite a bit, some huge cash right here in Switzerland. Or are they fields with out — you do not have to present me names, however are there fields in Switzerland in on-line platforms, which might be doubtlessly fascinating for you? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [11] ——————————————————————————– We now have stated earlier that we see the principle discipline of development within the actions of TX Markets. And there, there are larger potential targets. However because the business is absolutely going by means of a change and likewise in Classifieds, there may be loads of innovation and new companies are being developed which can be perhaps not within the triple-digit quantity of acquisition price, however within the double digit. We actually see fairly a big discipline of potential developments for which we’re prepared, which we’re following and for which we will actually think about to take a position a part of our money and even bigger quantity that than we have now in money. After which there may be the opposite discipline the place we additionally see a possible for development that’s Goldbach Group. Perhaps there, the capital funding wouldn’t be as necessary as within the discipline of TX Markets. Additionally the valuations are extra modest, however we see a consolidation of the commercial market and, due to this fact, additionally potential for an natural development in that discipline. ——————————————————————————– Operator [12] ——————————————————————————– The following query is by Daniel Bürki, it is the final query. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [13] ——————————————————————————– One other one for me. I noticed that you simply get authorities subsidies of CHF 3 million within the final 12 months. If I see the selections of the parliament, this may go up fairly considerably. Might you give any steerage how a lot cash we’ll get, if potential? After which talking of steerage, you should have an easy comparability base within the first half. You did not get — give any steerage for ’21. If you happen to might nonetheless say roughly what are your expectations for the precise 12 months? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [14] ——————————————————————————– In order for public funding, there are 2 totally different sorts of cash flows. One is the so-called, Corona Be aware: [Heal, Save], which is one-off simply to assist through the disaster and that amounted to about CHF 2 million, a bit of bit extra. After which we have already got some benefits from the so-called oblique the worth additional on. That could be a subsidy for the distribution of printed newspapers. And within the political course of, there’s a mission to essentially considerably enlarge that, assist to the distribution of printed newspapers, which, in line with our expectations, however the course of remains to be ongoing, might result in a discount of our distribution prices of round CHF 20 million per 12 months, which corresponds to about 20% of our whole prices for logistics and distribution. And may be very, very vital for Tamedia and the event of Tamedia. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [15] ——————————————————————————– And in ’21? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [16] ——————————————————————————– Sandro, we do not give actually… ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [17] ——————————————————————————– Sorry, however you must repeat that. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [18] ——————————————————————————– I used to be asking Sandro to touch upon that. As you realize, we do not give steerage on the monetary improvement. I feel at the moment, it is much more troublesome than beneath regular circumstances, however Sandro will go so far as he can. ——————————————————————————– Sandro Macciacchini, TX Group AG – Head of the Funds, HR & IR Division and Member of the Administration Board [19] ——————————————————————————– Precisely, it is what you are saying. I suppose Mr. Bürki anticipated the reply, however he nonetheless tries. However as you stated, particularly this 12 months, it is even more durable to present any steerage. And the most effective we will say is that we’re on a restoration — path of restoration. And we have been to have — reap the benefits of the probabilities this disaster provides us. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [20] ——————————————————————————– Simply perhaps that will help you a bit of bit, you took out operational price of CHF 69 million in 2020, which is important, proper? And a giant chunk of this must be sustainable. So with a bit of little bit of assist from higher gross sales development, you must see fairly a optimistic shift in your profitability. Is that this a wise assumption? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [21] ——————————————————————————– It is a good ambition. ——————————————————————————– Sandro Macciacchini, TX Group AG – Head of the Funds, HR & IR Division and Member of the Administration Board [22] ——————————————————————————– I share the conclusion. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [23] ——————————————————————————– Okay. This helps me already quite a bit. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [24] ——————————————————————————– We wish to be formidable. Can I ask one query to you guys? Now we have now tried to present you, actually, an in-depth view of our totally different companies. Was this useful for you that we had our colleagues, the overall managers of the enterprises, presenting their companies in additional depth? Or was it nearly an excessive amount of for you? ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [25] ——————————————————————————– Was very useful. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [26] ——————————————————————————– So we must always try this once more sooner or later. ——————————————————————————– Daniel Bürki, Zürcher Kantonalbank, Analysis Division – Analysis Analyst [27] ——————————————————————————– I might adore it, sure. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [28] ——————————————————————————– Good. Is that the overall opinion of the viewers? Perhaps technically troublesome now to have a dialog. However might I ask you, please tell us by e-mail, a really brief e-mail, whether or not you might have appreciated this, whether or not it was useful. And if in case you have any solutions for upcoming analyst calls. Could be useful for us to raised perceive your wants and the way we will offer you pertinent data. ——————————————————————————– Operator [29] ——————————————————————————– Okay. Do you wish to end this name on this observe? ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [30] ——————————————————————————– If there are usually not any extra questions. Sure. So if there are not any questions, thanks very a lot on your consideration. ——————————————————————————– Operator [31] ——————————————————————————– Andy Schnyder has one other query from zCapital AG. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [32] ——————————————————————————– Good. ——————————————————————————– Andy Schnyder, zCapital AG [33] ——————————————————————————– Sure, I simply needed to reply your query. So my view, I feel it was very useful. Normally, the extra numbers there are tethered to this, however I feel we acquired overview. And likewise strategically, you might have so many alternative taking part in fields and battles to combat. So it was actually fascinating to see all that. And it is also at all times actually fascinating to get to know the individuals behind the totally different companies. I feel that’s extraordinarily essential, my guess is. And that is most likely true for the previous few years. It is actually troublesome out there to make an funding story on Tamedia, which might appeal to loads of investor curiosity. I imply, there are normally a number of specialised Swiss funds like ours, which have an interest. However exterior of that, not a lot curiosity. The free float is low and you’re combating this battle in opposition to the shrinking print promoting revenues. And this can be a laborious aspect, and also you’re doing job. However these 2 components, the low free float and combating to face nonetheless, I name that, shouldn’t be actually a horny story, and therefore, the curiosity might be not the place it might be or must be, sure. However I feel it was actually useful, sure. Actually good presentation. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [34] ——————————————————————————– I imply these are clearly considerations that we have now, too, and we predict quite a bit about it. We’re assured that as we undergo the transformation, we’ll be capable of additionally present the trail into the long run. After which it is going to additionally unlock extra fantasy. That’s what we imagine, what we work on and for what we’re assured. And one concern that you’ve got additionally addressed is the query of complexity. We perceive that we’re, in comparison with our measurement, a comparatively complicated group or, to illustrate, there may be various complexity beneath the roof of our group. I feel this has additionally to be seen within the context of the scale of our nation, which may be very small, however it is vitally wealthy. And the markets we function in are extraordinarily enticing in contrast internationally. And we predict we actually can profit from the synergies inside the group, each by way of price synergies, however primarily by way of having the ability to function on the highest ranges in comparison with the worldwide requirements. And that — this then justifies the truth that we have now a comparatively excessive complexity by means of — given the diversification of our actions. And the aim of the brand new group construction is to scale back this complexity by decentralizing. After which, inside the operational items, have a lot much less complexity and a really clear give attention to the worth to be created. That’s, in essence, the thought behind the brand new construction. ——————————————————————————– Andy Schnyder, zCapital AG [35] ——————————————————————————– Sounds promising. I imply, we had a few years of shrinking web earnings. And in the long run, its money flows and web revenue or web revenue and the extra cash flows which can be actually counting. And sure. And sure, the event there was a bit troublesome, however you are in a troublesome discipline in some ways. So I am not saying you probably did a nasty job on that. It is simply your market that’s troublesome. At instances, it’s most likely a bit of bit too troublesome for lots of buyers to essentially have a look at the sector, sure. However extra transparency and such as you did as we speak. And in the long run, hopefully, 1 day additionally a bit of bit extra free float, we mentioned about that previously, loads of instances, would actually assist. And one factor you could possibly take into consideration is to draw extra curiosity is simply hiring a number of banks by means of the SIX by means of the inventory change to do protection. You should purchase that for, I feel it is CHF 70,000 and also you get 3 financial institution — protection from 3 extra banks or 2 extra banks. That would additionally assist to draw curiosity. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [36] ——————————————————————————– Thanks on your recommendation. We actually recognize. And once more, if in case you have a second and drop us an e-mail, those that perhaps haven’t now expressed their suggestions. And if in case you have extra out of your aspect, please tell us. We’re actually keen to enhance additionally on the Investor Relations aspect and to make our story identified and to make the share worth go up once more. ——————————————————————————– Operator [37] ——————————————————————————– (Operator Directions) ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [38] ——————————————————————————– But additionally perhaps lots of you now have time constraints, so we can’t — do not wish to maintain you too lengthy. Those that have time. We’re glad to listen to you. In any other case, once more, a brief e-mail would even be very useful. ——————————————————————————– Operator [39] ——————————————————————————– There is not any additional caller asking. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [40] ——————————————————————————– Okay. Nice. So thanks very, very a lot once more, and searching ahead to the subsequent name with you. ——————————————————————————– Operator [41] ——————————————————————————– Women and gents, thanks on your attendance. This name has been concluded. Chances are you’ll disconnect. ——————————————————————————– Pietro P. Supino, TX Group AG – Chairman, CEO, Member of Administration Board & Writer [42] ——————————————————————————– Thanks.