Yell Publicidad

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Yell Publicidad

• Ana García FauChief Executive Officer

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Disclaimer

• During this presentation we will be discussing
  Yells 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 releases
  which are posted on our website, for more
  information on the risks and uncertainties.

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Agenda

• Spanish market
• The opportunity exists
• A year of transition
• Back to Basics strategy
• Print, online and directory assistance
• LatAm
• The LatAm opportunity

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The opportunity exists
Low penetration rates
The online opportunity
Under investment in usage
Leading market positions
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Low penetration rates
(3)
(2)
(1)
(1) Defined as average of UK, France, Italy,
Spain and Sweden (2) Defined as percentage of
businesses advertising in yellow pages
directories. Source Kelsey Group 2007 (2006
data) (3) Defined as percentage of population
with access to Internet. Source Jupiter Research
July 2007 (2007 data)
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The online opportunity
(1) Source IAB Spain, 2007 (2) Source
Eurostat, December 2007 (3) Source Everis,
December 2007 (4) Source DMR Consulting,
Eurostat (5) Source Nielsen 3Q07 and 3Q05
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Under investment in usage

• Strong usage figures resulting from our
  multi-channel approach
• 1.6 million searches per day (October 07)(1)
• Attractive ROI for our advertisers
• Clear opportunity to improve usage monetisation
  through online and DA unbundling strategy
• (1) OJD, Yell Publicidad estimates

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Leading market positions
Print2006 revenues
Online2006 revenues
DA2006 revenues
Others(1)11.5
Others(2)17
Others(3)48
Yell Publicidad88.5
Paginasamarillas. es 83
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(1) Others include QDQ Media and regional/local
publishers. Source internal research (2) Others
include QDQ.com. Source internal research (3)
Others include Telefónica, Telegate and others.
Source CMT (Spanish telecom regulator)
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Economic resilience
Yell Publicidad Spain sales breakdown 2007e as
of total sales
SMEs Independent professionals86
Large SMEs10
National companies4
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A year of transition
New organisation and management team
Deployment of synergies
Back to Basics strategy
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Back to Basics strategy

• Focus on core print and online businesses sales
  and marketing
• Investing in growth
• Transfer of proven best practices from Yell Group

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Back to Basics strategy main initiatives

• Sales force revitalisation
• Pay scheme
• Organisation
• Sales method and training
• Transfer of best practices
• New publication schedule

• Business rationalisation
• Business disposals and discontinued activities
• Elimination of non core products
• Ad range simplification and rescoping
• Simplifying price and discount policies

• Customer strategy
• Channel neutral approach
• Different channel allocation
• Win, Keep and Grow
• Unbundling strategy
• Cleaning the client portfolio

• Investing in usage
• Faster distribution
• Higher AP on core business
• Product enhancement print and online
• Online syndication agreements
• Search engine optimisation

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Business rationalisation

• Business disposals and discontinued activities
• Elimination of non core products from 18 to 7
• Ad range simplification and rescoping
• Simplifying price and discount policies

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Customer strategy

• Channel neutral approach
• Sales channel allocation
• Win, Keep and Grow
• Unbundling strategy online and DA
• Derisking the client portfolio

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Investing in usage

• Print
• Higher spending on AP
• Product scoping and redesign
• Faster distribution

• Online
• Continuous improvement of users experience
• Redesign of YP sites network
• Syndication agreements
• Search engine optimisation

Visits (millions)
CAGR 41
Source OJD
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The online revenue strategy

• Unbundling
• Increase the number of unbundled customers
• Drive up unbundled ARPA
• Monetisation based on product value / usage
• Sales force all channels plus online
  specialists
• Sales force training
• Geographical pricing
• Ad range simplification

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Leadership in DA business

• Increasing market share in a competitive market
• Successful marketing campaigns
• Top of mind brand
• Excellent service
• Revenue sources traffic and advertising
• Potential to further monetise traffic through the
  unbundling advertising offer

Market calls (millions)
Source CMT (Spanish telecom regulator)
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The LatAm opportunity (i)

• Latin America represents approximately 20 of our
  business
• Small, but growing and profitable operations
• Strong brands in all the countries
• Market leading positions
• High online business upside

Chile
Argentina
Peru
Local Directories 0.5
La Gran Guía 9.5
Local Directories 0.5
Yell Chile 90.5
Yell Argentina 99.5
Yell Peru 99.5
Source 2006, internal estimates
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The LatAm opportunity (ii)

• Transfer of best practices
• Product portfolio
• Win, Keep and Grow strategy
• Sales revitalisation
• Online business development
• Integration of Publicom and Telinver in Argentina
• Deployment of synergies production, IT, product
  development

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Conclusions

• Clear opportunity for Yell Publicidad in both the
  Spanish and the LatAm markets
• Addressing the opportunity in a way that has
  proved successful in the UK and in the US
• Acquisition plan on track
• Synergies ahead of expectations
• Implementation of Back to Basics strategy

Yell Publicidad is in a good position to deliver
growth and increase its profitability
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Yell Publicidad

• Mitch ConnollyChief Commercial Officer

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Sales strategy - Back to Basics

• Elimination of non-core products
• Clear channel allocation strategy
• Investment in sales remuneration
• Strengthening the sales organisation
• Focus on sales approach and training

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Previous product portfolio
Print
Online
Others
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Elimination of non-core products
Print
Online
Others
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New product portfolio
Simplicity - Focus
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Channel allocation strategy
Telesales of customer allocation
Face to face sales of customer allocation
6pp
-6pp

• Improved sales channel focus
• Restructure of National Accounts
• Emphasis on growth through face to face selling
• Telesales focus on acquisition

Supports Win, Keep and Grow
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Sales remuneration a vital ingredient for
growth

• Before
• Below market average
• Low basic salary
• Annual bonus
• Seniority biased
• Complex

• Now
• Above market average
• High basic salary
• Transaction based
• Pure meritocracy
• Simple

Remuneration scheme fully aligned with business
objectives
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Strengthening the Sales Organisation

• Restructuring senior sales management
• Improving leadership in key markets and channels
• Additional support and development for first line
  management
• Emphasis on performance management and coaching
• Improved quality of sales people

250 increase in response to sales vacancies
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Revised sales method Sell the Value, not the
Discount

• Transfer of best practices from UK
• Introduction of two call sales process with
  bespoke visuals
• Improved sales support material
• Discounts rigorously controlled by marketing
• Drive ARPA through proven value

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Unbundling realising the value of online usage

• All products now sold discrete and unbundled
• Supports price to value on-line model
• Increases monetisation of current and future
  traffic
• Improved customer clarity and choice
• Supports our channel neutral strategy

Paginasamarillas.es visits (millions)
Source OJD
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Extracting value

• Strong brands, strong usage, delivering great
  value
• Organisational focus on marketing and sales
• Emphasis on sales method and training
• Delivering growth by extracting value