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Investor Presentation
June 2007
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Disclaimer
During this presentation we will be discussing Yell’s business outlook and making certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially.
We urge you to read the Risk Factors and cautionary language in the annual report posted on our website.
We also draw your attention to our press release which is posted on our web site, for more information on the risks and uncertainties.
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Headline results
Adjusted Earnings figures stated before exceptional items and amortisation throughout this presentation
Year ended 31 March 2007 £m Actual
Growth at constant
FX Revenue 2,075.1 32.6%Adjusted EBITDA 677.5 39.3%Operating cash flow 541.6 24.2%
Cash conversion 79.9%Free cash flow before refinancing costand exceptionals 252.0
Adjusted diluted earnings per share up 8.2% 35.5pUnderlying adjusted diluted earnings per share 37.1p 13.1%
Total dividends per share up 11.8% 17.1p
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The Yell Group
Yell UK 36%
Yell Publicidad 22%
Adjusted EBITDA margin 32.6%
Yellow Book USA46%
Yell Publicidad 21%
Yell UK 33%
FY 07 revenue pf* FY 07 EBITDA pf*
Yellow Book USA42%
* Proforma figures including Yell Publicidad on a LTM basis
Organic revenue growth 6.8%
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The Yell proposition
Leading market positionsSimple, focused strategy
Investment in brand and usageChannel neutral
Recession resilientSales excellence
World class processesHigh margins
Strong cash generation
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Yellow Book acquired 1999McLeod acquired 2002TransWestern acquired 2005Platform acquisitions, in-fills and launches since 1999
Yellow Book USA – 970 markets
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US competitive forces
Over-capacity in directories
Companion directories
Incumbents launching independent directories
Pricing
Independent start-ups
Sustainability of this level of competition in doubt
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Yellow Book USA initiatives
Sharpening focus on competition– Retain best sales people; retune products; refine sales
techniques Driving usage in print and online– Investment in brand - print and online usage up– Monetise usage
Expansion of footprint continues– Well placed for potential consolidation
Yellowbook.com development
Positioning for competitive shift and opportunities
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Yell UK initiatives
Driving usage – Advertising – Yell.com developments
Growing volumes– RPI-0% opportunity– Yell.com online-only prospecting
Monetising usage– Up-sell in print and online
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The Spanish directories opportunity
Spain UK Europe(a)
Real GDP growth(b)
3.7% 2.7% 2.9%
Print usage %(c) 32% 62% 42%
Online penetration % of population(e) 40% 59% 53%
Yellow Pages penetration(d) 14% 24% 25%
(a) Defined as average of UK, France, Italy, Spain and Sweden (b) Growth rate for 2007(E). Source: Oxford Economics May 07 (c) Defined as the% of respondents who have used printed yellow pages in the last six months. Source per Kelsey Group Feb 07 (except US
Feb 06)(d) Defined as percentage of businesses advertising in yellow pages directories. Source Kelsey Group; Global Yellow Pages 2005(e) Defined as percentage of population with access to Internet – 2006 data. Source Jupiter Research
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Yell Publicidad initiatives
Back to basics– Driving usage– Rationalisation of products– Simplification of rate card– Targeting customers
Synergies a year early – Print, paper, pre-press
Portfolio – Non-core businesses– Expansion in Argentina
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On-line UK and US
Yell.com revenue up 61%
Yellowbook.com revenue up 62%
Unique users March (m) RASA* (£)Searchable advertisers at31 March (000s)
Searchable advertisers at 31 March (000s)
Visitors March (m) RASA* ($)
174 196
FY 06 FY 07
6.8 7.6
FY 06 FY 07
378518
FY 06 FY 07
391 380
FY 06 FY 07
2.4
6.1
FY 06 FY 07
123178
FY 06 FY 07
Up
13%
Up
37%
Up
12%
Dow
n 3%
Up
45%
Up
154%
RASA is revenue per average searchable advertiser
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Priorities for FY 08
Yellow Book USA - focus on competing intough market
Yell UK - marketing and sales under RPI-0%
Yell Publicidad - Back to Basics
Investment in brandsChannel neutral
Win, keep and grow
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Investor Relations: Jill Sherratt +44 (0)118 950 6984
www.yellgroup.com
Yell, Queens Walk, Oxford Road, Reading, Berkshire RG1 7PT
™Trade mark of Yell Limited