GoYellow Media AG - More.de AG

GoYellow Media AG
Recommendation:
BUY (-)
Risk:
MEDIUM (-)
GoYellow is in the fast lane
Price Target:
EUR 10.50 (-)
Promising growth prospects in the mid-term
▪ GoYellow Media AG is one of Germany‟s leading information service
providers. The subsidiaries of GoYellow Media AG include the wholly
owned PeterPays AG, 118000 Telefonvermittlung GmbH, and GoYellow
GmbH, 90% of which is owned by GoYellow Media AG, with the remaining
10% being held by a total of 16 German Yellow Pages publishers. The
company was up to now solely engaged in the media portal business
within Germany.
▪ The company will launch a switchboard service using the number 118000
in December 2009. At 118000, callers can get in touch with people whose
contact details are not available on public directories. 118000 treats all
data highly confidentially and does not forward them to third parties.
Despite the promising potentials for GoYellow in its operational business
some risks are still on the agenda. In case the directory assistance will not
be as successful as planned this would stress the margins in the group.
▪ The group will start a marketing campaign (EUR 5m) for the launch of the
118000 service. Despite next year‟s financial figures will fall out of line it is
a start into a new growth level as a result of the success of this newly
established service. We expect 118000 to generate revenues of EUR
3.5m in 2010E and already be profitable on quarterly basis in 2H 2009E.
▪ Given the growth potential in the product portfolio of GoYellow we expect
the group to achieve revenues of EUR 17.6m in 2009 which will continue
over the next years to came in at EUR 30.3m in 2011. We estimate the
EPS of GoYellow to be EUR 0.57 in 2009E, EUR 0.26 in 2010E and EUR
1.00 in 2011E.
▪ The share of GoYellow already shows a strong momentum and supported
by positive corporate news this trend could endure for a while. However,
despite the positive stock development, the company still has to proof its
ability to sustain its profitiability in the long run.
▪ We applied a multiple valuation based on a peer group and a Discounted
Cash Flow (DCF) model. Given the long-term growth prospects we weight
the DCF with 75% in our valuation approach. Our price target is EUR
10.50 per share. We initiate our coverage with a BUY recommendation,
indicating an upside potential of about 48% for GoYellow‟s stock.
Key data
Source: GoYellow Media AG, CBS Research AG
30 October 2009
Share price (dark) vs. CDAX
Sources: CBS Research AG, Bloomberg
Internet: goyellow-media.de
WKN: 691190
Reuters: VRIG.DE
Share data:
Share price (Yesterday‟s closing price):
Shares outstanding (m):
Market capitalisation (EURm):
Enterprise value (EURm):
Ø daily trading volume (no. of shares):
Performance data:
High 52 weeks:
Low 52 weeks:
Absolute performance (12 months):
Relative performance (vs. CDAX):
1 month
3 months
6 months
12 months
Shareholders:
Management:
albiservice GmbH:
Union Investment:
Freefloat, others:
Financial calender:
19 March 2010
Analyst: Marcus Silbe
EUR 7.09
6.6
46.9
36.3
60,286
EUR 7.84
EUR 1.05
500.85%
7.52%
20.0%
155.59%
413.57%
26.70%
14.90%
4.90%
53.50%
Annual report FY 2010
Close Brothers Seydler Research AG
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Sector: Internet
ISIN: DE0006911902
Bloomberg: VRI GY
Please notice the information on the preparation of this document, the disclaimer, the advice regarding possible conflicts of interests, and the mandatory information required by § 34b WpHG (Securities Trading Law) at
the end of this document. This financial analysis in accordance with § 34b WpHG is exclusively intended for distribution to individuals that buy or sell financial instruments at their own account or at the account of others
in connection with their trading activities, occupation, or employment.
Change
2009E 2010E
2011E
new old new old new old
Sales 17.6 - 23.2 - 30.3 -
EBIT 5.2 - 2.3 - 9.0 -
EPS 0.57 - 0.26 - 1.00 -

GoYellow Media AG
Table of content:
Investment thesis ...................................................... 3
SWOT analysis ........................................................... 5
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Strengths ...................................................................................................... 5
Weaknesses ................................................................................................. 5
Opportunities................................................................................................. 6
Threats .......................................................................................................... 6
Valuation.................................................................... 7
Valuation summary ....................................................................................... 7
Peer group valuation ..................................................................................... 8
DCF ............................................................................................................ 11
The company ........................................................... 13
Company profile .......................................................................................... 13
Company structure ...................................................................................... 13
Management ............................................................................................... 13
Shareholder structure ................................................................................. 14
Company history ......................................................................................... 14
Business model........................................................ 16
GoYellow GmbH ......................................................................................... 17
GoYellow.de ............................................................................................. 17
Peter Pays AG ............................................................................................ 19
PeterZahlt.de............................................................................................ 19
Cheap Calls ............................................................................................. 20
118000 Telefonvermittlung GmbH .............................................................. 20
Strategy ................................................................... 21
Strategic premises ...................................................................................... 21
Growth strategy ........................................................................................... 21
GoYellow.de ............................................................................................. 22
PeterZahlt.de............................................................................................ 23
118000 ..................................................................................................... 23
Distribution and marketing .......................................................................... 24
Future projects ............................................................................................ 24
Market development ................................................ 25
Local search & directory assistance ............................................................ 25
Online advertising ....................................................................................... 25
Competition ............................................................. 28
Financials ................................................................ 30
Historical financial development.................................................................. 30
Outlook ....................................................................................................... 32
Appendix .................................................................. 37
Close Brothers Seydler Research AG | 2

GoYellow Media AG
Investment thesis
GoYellow Media AG is one of Germany‟s leading information service providers.
The subsidiaries of GoYellow Media AG include the wholly owned PeterPays AG,
118000 Telefonvermittlung GmbH, and GoYellow GmbH, 90% of which is owned
by GoYellow Media AG, with the remaining 10% being held by a total of 16 German
Yellow Pages publishers. The company was up to now solely engaged in the media
portal business within Germany.
GoYellow Media AG has established a business in the area of information services
that ensures a fast development process for new innovations, while remaining
highly productive without jeopardising the working processes. Over the years the
group managed to attain a strong market position in several promising sectors of
the e-commerce business.
One of the key elements of GoYellow‟s strategy is the extension of the product
portfolio with innovations that allow to expand the market share as the company will
benefit from its first-mover-advantage not only in the business model of
PeterZahlt.de in Germany, but also in particular with the new switchboard service
118000 which is currently a unique business model in the whole European market
and leads to strong entry barriers for new market entrants.
After a long transformation phase, the company has stabilised its operative
performance over the last five quarters, as a consequence of restructuring the
business model and tightening the strategic goals of the group. Over the period 1Q
2008 – 3Q 2009 the company experienced a top line growth of CAGR 14% and
managed to becoming profitable. Along with steady improvement in net income and
EBIT margin, the company pushed ahead with implementing a more focused
business model with the main focus on its goyellow.de segment.
Taking into account that the fourth quarter will be as profitable as the first nine
months 2009 this fiscal year will end very positively. Overall, we expect the group to
achieve total revenues of EUR 17.64m, indicating a 33.9% growth yoy. Therefore,
4Q revenues will amount to EUR 4.41m. The estimated gross profit margin of
91.8% leads to a margin for full year of 89.9%, corresponding to EUR 15.86m.
Similarly to the revenue growth in 2009E, the EBIT also will further rise. In
comparison to the previous year the group should achieve an EBIT of EUR 5.2m in
2009E, corresponding to an EBIT-margin of 29.4%. Despite the increasing
marketing expenses in 2010E we are confident that GoYellow will also be able to
keep its cost structure manageable in the mid-term. In the long run we are
convinced that the top line growth of GoYellow will further continue and the EBITmargin
will settle down in the range of 25% in 2018E, which is in our opinion a
conservative assumption.
The significant growth momentum which GoYellow has achieved over the last two
years should also sustain in the course of the fiscal year 2009E. In addition,
considering the current product portfolio (including the new units 118000 and
Cheap Calls) we are convinced that GoYellow is favourably positioned for the mid-
and long-term.
Generally speaking this new service line will bring GoYellow up to a new level of
operational performance. Additionally, as the group is the first mover on this service
the chances of success are very promising. According to the management,
revenues in the range of EUR 5 – 10m seems a realistic scenario for 2010. We
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GoYellow is a leading
information service
provider
Fast developed
processes for new
innovations
Strategic premises are
the remodelling of
PeterZahlt and the
establishment of
118000
The group managed to
perform a CAGR of
14% over seven
quarters
4Q will confirm the
positive momentum in
the current fiscal year
Further growth
potential over the next
few years
EBIT-margin 25% in
the long run
Favourable positioned
for the mid- and longterm
118000 will boost the
performance of the
group
Close Brothers Seydler Research AG | 3

GoYellow Media AG
decided to chose a conservative assumption for the revenue growth and expect in
our estimation EUR 3.5m in 2010E and EUR 4.03m in 2011E. By doing so,
revenues of EUR 3.5m indicate about 1.75m calls, as we expect a price of EUR 2
per call. For 2011E this would correspond to 2.1m caller, indicating a growth of
about 15% yoy.
Based on the expected figures for 2009E the EV/EBIT-Multiple is about 7.0 and
about 15.8 for 2010E. Based on our forecasts for 2011E, currently the share is
traded with a P/E-ratio of about 7.1.
We applied a multiple valuation based on a peer group and a Discounted Cash
Flow (DCF) model. Given the long-term growth prospects we weight the DCF with
75% in our valuation approach. Our multiple valuation on the basis of P/E and EV
multiples indicates a market-derived value of EUR 6.25 per share. Our DCF model
yields a fair value of EUR 12.02 per share. On the basis of both results this
approach resulted in a fair value of EUR 10.58 per share. Our price target per
share is at EUR 10.50. We initiate our coverage with a BUY recommendation.
www.cbseydlerresearch.ag
P/E 7.1 for 2011E
BUY recommendation
with price target of
EUR 10.50 per share
Close Brothers Seydler Research AG | 4

GoYellow Media AG
SWOT analysis
Strengths
▪ Strong market position: The company is one of the leading business assistance
companies in the German market
▪ The company provides through its highly experienced and well-known
management board strong expertise by offering high-quality in all of its product
portfolios
▪ High entry barriers in the core market GoYellow.de as well as the newly
established switchboard service 118000
▪ Solid shareholder structure: The management has been steadily committed to
the stock with a current share of about 26.7%
▪ With a sophisticated IT-infrastructure the company is able to fulfil its strategic
growth targets by new products with EBIT-margins of about 30%
▪ Strong positioning on the product side: GoYellow has achieved an excellent mix
between existing products that have been installed in the market which already
generate significant sales volumes and promising margin levels
▪ Balance sheet: The group is not affected by liability payments to banks and
managed to turnaround over the last few years
Weaknesses
▪ Low geographic business diversification: The company generates its revenues
in Germany. Therefore, the growth potential depends on the consumer
behaviour of its home market
▪ Low revenue diversification: The company still generates between 70% - 80%
of its revenues in the GoYellow.de business
▪ High dependency on the distribution channels of the yellow pages publishers as
most of its revenues amounts to this segment
▪ The company has just become profitable after several years of losses.
Therefore, the group has to proof whether this profitability is sustainable
▪ As the switchboard service is unique in the German market the risk of failure is
not yet fully foreseeable
▪ No dividend payments: As long as the group has retained losses in the balance
sheet the group is not able to pay dividends
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GoYellow Media AG
Opportunities
▪ Promising growth prospects in emerging new directory assistance service:
Resulting from a first-mover-advantage in this new kind of directory assistance
the group can built up high market entry barriers and boost up its top and
bottom lines by this new segment
▪ Organic growth potential resulting from new pricing model at GoYellow.de: In
August 2008 the group changed its pricing model for GoYellow.de from its
“offline-related pricing model” towards the online-related pricing model similar to
general search engines like Google, which have already shown a big impact on
the financial statement, and the prospects for further growth seems promising
▪ Expansion of business to new geographic markets as well as business
opportunities arising in the business segment of PeterZahlt and the newly
established services
▪ The growth strategy is not burdened by one specific business unit: The
business model of GoYellow does not depend on the growth ability of one
segment as every segment can be seen as a stand-alone
▪ In case the development of the iPhone application Cheap Calls will exceed the
“low” expectations, this business might be enhance in the future
Threats
▪ Negative impacts from current economic slowdown: As the segment
GoYellow.de depends on acquiring new customers the current stressed market
sentiment could hit the top line performance of the group
▪ Given that up to now no details concerning the business model of the
switchboard service are published it is difficult to forecast planning figures for
the company as well as the success rate as it is not known if this new service
will be accepted by the customers
▪ The group will start a campaign in 2010 with a marketing budget of about EUR
5m. In case the company is not able to refinance this expense the financial
statement as well as the cash flow situation might be stressed by this effect
▪ The remodeling of PeterZahlt towards a “German Skype service” could miss the
customer demand and therefore, the group‟s financial situation would be
stressed and in the worst case scenario another restructuring/remodeling has to
be provided to justify the going concern without burdening the bottom line and
cash flows in a disproportional manner
▪ Certain companies included in consolidation were sued for damages by
Deutsche Telekom AG for using subscriber data. Despite the fact, that
GoYellow already considers bringing charges against Deutsche Telekom AG a
possible compensation payment could harm the financial figures of the group
despite the risks are insignificant, according to the company
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Close Brothers Seydler Research AG | 6

GoYellow Media AG
Valuation
Valuation summary
We applied a multiple valuation and a discounted cash flow (DCF) model to derive
the company´s fair value. Our peer group comparison indicates a fair value of EUR
6.25 per share. We focused on the multiples for 2009E to 2011E to have more
certainty in considering the estimates for the peer group-companies. Our DCF
model results in a fair value of EUR 12.02 per share.
We weighted the DFC valuation with 75% and the Peer group valuation with only
25%, because of the limited informative value of the slightly heterogeneous peer
group. We believe that the DCF model better indicates the long term perspectives
of this growing company. We derive a final fair value of EUR 10.58. We start our
coverage with a BUY recommendation and a price target of EUR 10.50 per share.
Consolidation of valuation methods
Source: CBS Research AG
On the basis of our derived fair enterprise value (EV) we calculated an EV/EBIT
multiple of 11.5 for 2009E and an EV/EBIT multiple for 2011E of 6.6. EV/EBITDA
for 2009E and 2011E on basis of the derived fair value is about 10.9 and 6.4.
Furthermore, we calculated the multiples based on the current stock market price,
which are stated in the last row of the table below.
Multiples of GoYellow Media AG on basis of fair value per share
Source: CBS Research AG
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Weighting Fair value
factor per share (EUR)
Peer group valuation 25.0% 6.25
DCF valuation 75.0% 12.02
Fair value per share (EUR) 10.58
Valuation on basis of a
DCF model and a peer
group comparison
Fair Value per share is
EUR 10.58
Price target of EUR
10.50 per share
Current multiples
Close Brothers Seydler Research AG | 7

GoYellow Media AG
Peer group valuation
From our point of view GoYellow‟s equity story is very special in the German stock
market. In order to include a market-oriented approach in our valuation, we used a
multiple valuation based on a peer group. Our peer group comprises six listed
companies related to with similar business models operating in European markets.
We decided to build two peer groups. One group should exclusively composed of
stocks, which have a high proportion of revenue generated in the Yellow pages
business (off- and online). The second peer group is composed of companies,
which have a high share of revenues generated in the area of (online) advertising
and subscriber payments (XING). Overall, all chosen companies have a focus on
the online business.
As indicated in the table below, the company´s market cap of EUR 46.9m is still
relatively low compared to its relevant peers, although GoYellow is in Germany one
of the few companies within this specific sector.
Peer groups: Company data
Source: CBS Research AG, Bloomberg
Peer group – short overview
ad pepper media AG is an independent international online advertising marketer.
The company offers individual and efficient solutions for media agencies,
advertisers and websites in display, performance, email and affiliate marketing,
covering practically the whole range of online advertising. The ad pepper media
group offers trailblazing solutions in their fields, including: Emediate (ad serving),
ad.agents (search engine marketing) and Globase (email marketing technology).
Source: ad pepper media AG, Bloomberg, CBS Research AG
AdLINK Group is a European supplier of online performance-based marketing
solutions. The AdLINK Group reaches over 100m unique users around the world
via its brands affilinet (www.affili.net) and Sedo (www.sedo.com). Over 6m internet
www.cbseydlerresearch.ag
GoYellow’s investment
story is promising
All chosen companies
have focus on the
online business
ad pepper media AG
AdLINK Group
Close Brothers Seydler Research AG | 8

GoYellow Media AG
domains and websites are converted into sales leads and customers. In its
operating business, the AdLINK Group will focus on the performance-based
advertising models of its specialist‟s affilinet (Affiliate Marketing) and Sedo (Domain
Marketing).
Source: ADLINK Group, Bloomberg, CBS Research AG
Eniro AB is a Sweden-based company engaged in the provision of search and
directory services. Its search database connects sellers to buyers and helps to find
people using Online, Voice and Offline Media channels. The Online business unit
includes Eniro‟s Internet services, comprising the local search Websites in all the
Nordic countries, as well as mobile services in Sweden, Norway, Denmark and
Finland. The Offline Media business unit includes the Company‟s production of
directories and other printed media, such as map books in Denmark.
Source: Eniro AB, Bloomberg, CBS Research AG
telegate AG is a multichannel-provider of local search with approx. 3,000
employees across the group. The majority interest in telegate MEDIA AG (former
klickTel AG) was an important milestone with regard to the strategic new orientation
on the German core market. The company supplies consumers in Germany with
high-quality information via the internet portals 1880.com and klickTel.de, the
telephone directory assistance 11880, the klickTel CD-ROMs and -software
solutions as well as via the directory assistance services for mobile devices.
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Eniro AB
telegate AG
Close Brothers Seydler Research AG | 9

GoYellow Media AG
Source: telegate AG, Bloomberg, CBS Research AG
XING AG is a Germany-based company engaged in the provision and maintenance
of online business communication services. By providing the Internet platform
xing.com the group aims at business professionals, offering discovery capability
and contact management tools. The Company divides its operations into three
business divisions: Subscriptions, e-commerce and Advertising.
Source: XING AG, Bloomberg, CBS Research AG
Yell Group plc (Yell) is an international directories business operating in the
advertising market, through the printed, online and phone-based media in the
United Kingdom, the United States, Spain and Latin America. During the fiscal year
ended March 31, 2009 (fiscal 2008), the Company completed the acquisition of the
Adworks businesses in the United Kingdom, the United States, Spain and India.
Source: Yell Group plc, Bloomberg, CBS Research AG
www.cbseydlerresearch.ag
XING AG
Yell Group plc
Close Brothers Seydler Research AG | 10

GoYellow Media AG
Valuation
As already mentioned, we applied the median of both peer group multiples for
2009E to 2011E to our financial forecasts for GoYellow. However, considering the
marketing campaign costs of about EUR 5m the financial figures of GoYellow are
distorted in 2010E to a large extent, as the income statement-related effects will
follow-up this campaign for the newly established switchboard service 118000.
Consequently, the fair value per share is not as accurate as the long-term approach
of the DCF model which led us to the decision to weigh the peer group valuation
only with 25% (DCF 75%) in the overall company valuation.
Our multiple valuation of GoYellow resulted in a fair value of equity of EUR 41.4m.
Because of the sufficient comparability of the peer group in regards to GoYellow we
did not use any premium or discount. According to our multiple valuation, the fair
value per share amounts to EUR 6.25.
Peer Group Valuation: Multiples and derived valuation
Source: CBS Research AG, Bloomberg
DCF
Our Discounted Cash Flow (DCF) model is based on the following assumptions:
Weighted average cost of capital (WACC): On the basis of the current long-term
yields of German federal bonds, we set the risk-free rate at 3.0%. We assumed an
equity risk premium of 6.5%, and a debt risk premium of 2.5%. We did not use
GoYellow‟s historical beta for the WACC calculation due to the recent volatility in
stock markets and the strong momentum in the share of GoYellow. We decided to
use a Beta of about 1.4, which is a very conservative assumption. We furthermore
assumed a long-term target equity ratio at market values of 80%, which is also a
conservative assumption. These premises lead to a WACC of 10.53%.
www.cbseydlerresearch.ag
We applied the median
of the peer group
multiples
Our multiple valuation
of GoYellow resulted in
a fair value per share
of EUR 6.25
WACC calculation
Close Brothers Seydler Research AG | 11

GoYellow Media AG
Phase 1 (2008-10E): We estimated the free cash flows (FCF) of phase 1 according
to our detailed financial forecasts for this period stated in the financials section.
Phase 2 (2011-17E): For Phase 2, we started out from more general assumptions.
We allowed annual sales growth to decrease successively to 3.0% in 2018E. In the
long run we incorporated a stabilisation of the EBIT margin to 25.0% in 2018E into
our model.
Phase 3: For the calculation of the terminal value, we applied a long-term FCF
growth rate of 2.0% which equals the estimated long-term inflation rate. This
assumption theoretically corresponds to a real-term zero growth since we use a
nominal discount rate (WACC).
Based on these assumptions, we calculated a fair value of the operating business
of EUR 71.8m. We added GoYellow‟s net cash and included the estimated market
value of minority interests. The resulting fair value of equity is EUR 79.6m. The fair
value per share amounts to EUR 12.02, according to our DCF model.
DCF
Source: CBS Research AG
www.cbseydlerresearch.ag
Phase 1: Detailed
forecasts
We allowed annual
sales growth to
decrease successively
to 3% in 2018E
Long-term FCF growth
rate of 2.0%
Fair value per share of
EUR 12.02
Close Brothers Seydler Research AG | 12

GoYellow Media AG
The company
Company profile
GoYellow Media AG is one of Germany‟s leading information service providers.
The subsidiaries of GoYellow Media AG include the wholly owned PeterPays AG,
118000 Telefonvermittlung GmbH, and GoYellow GmbH, 90% of which is owned
by GoYellow Media AG, with the remaining 10% being held by a total of 16 German
Yellow Pages publishers. The Company is up to now solely engaged in the media
portal business within Germany. With the scheduled launch date for the 118000
switchboard services in December 2009, the company offers a broad range of
valuable services that intelligently and efficiently combine telephony services and
the Internet. Additionally, by establishing the new 118000 service the company
plans to close the existent gap between directory assistance and Internet search
engine. Currently, the group employs 58 people and is managed by Dr. Klaus
Harisch and Peter Wünsch.
Company structure
GoYellow Media AG purely acts as a management holding that has key
subsidiaries, each of them covering a specific strategic direction: GoYellow GmbH
(90%), Peter Pays AG (100%), and 118000 Telefonvermittlung GmbH (100%)
which was established in September 2009. The remaining 10% share in GoYellow
GmbH is held by the publishing group of the yellow pages.
Company structure
GoYellow GmbH
90%
Source: GoYellow Media AG, CBS Research AG
Management
The management board of GoYellow Media currently consists of two members - Dr.
Klaus Harisch and Peter Wünsch.
Dr. Klaus Harisch is Chief Executive Officer of GoYellow Media AG and is
responsible for strategy, finance and corporate communication. He has been CEO
of the group since 01 January 2004. Prior to his engagement at GoYellow he was
one of the three founder of telegate AG on 07 August 1996, a company which grew
under his leadership as CEO to employ 3,000 professionals and occupy a
prominent position in the directory services branch. As studied physicist Dr. Harisch
started his career 1992 as a technical project manager at Schwarz-Schilling &
Partner GmbH, based in Munich.
Peter Wünsch is as board member of GoYellow Media AG responsible for the
operational business of GoYellow.de and the telephony services. Since 2004 he
www.cbseydlerresearch.ag
GoYellow Media AG
Peter Pays AG
100%
118000
Telefonvermittlung
GmbH
100%
GoYellow is a leading
information service
provider
Dr. Klaus Harisch is
CEO
Peter Wünsch
Close Brothers Seydler Research AG | 13

GoYellow Media AG
has been a board member of GoYellow (till Juni 2006 varetis AG). Mr. Peter
Wünsch is one of the four founders of varetis and a co-founder of telegate AG. Mr.
Wünsch had studied information technology and after that he worked as system
analyst at Dr. Henk-Unternehmensberatung, Munich.
Shareholder structure
As shown in the following chart, the company‟s shareholder structure as published
by GoYellow Media AG on 09 October 2009 mainly consists of free float (43.30%).
Shareholder structure
BW Invest
4.80%
Union
Investment
4.90%
Günther Baierl
5.40%
albiservice
GmbH 14.90%
Source: GoYellow Media AG; CBS Research AG
As seen in the chart above, the GoYellow management (Dr. Klaus Harisch, Peter
Wünsch) has been steadily committed (current share ~26.7%) for a long time. This
is, in our opinion, a proof the management is trust to the company.
Company history
The corporate history of GoYellow Media AG started with the foundation of the
predecessor company pc-plus GmbH in 1983. In 1989 the company developed a
gateway system for access to international databases (IDIS) and one year later the
developed software (IDIS) had been deployed in Germany, Switzerland, the UK
and Finland.
In the course of the founding of pc-plus INFORMATIK GmbH & Co. KG in 1992 the
company became a global player in the field of international telephone directory
assistance systems. Resulting from the internationalisation the company launched
subsidiaries in several countries, like USA, Switzerland, the UK and Singapore.
At the company‟s 15th Year anniversary pc-plus enhanced its product portfolio
towards internet telephone information systems, automatic directory assistance and
the expansion of all call center applications. In the same year company changed
into pc-plus INFORMATIK AG. But already one year later the company name
changed to varetis AG and since 2000 the share has been listed at the Frankfurt
Stock Exchange.
The internet searches for local addresses (Goyellow.de) had been developed in
2004 resulting from the know-how of varetis in the field of data search technologies.
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Peter Wünsch
12.10%
Free float
43.30%
Dr. Klaus
Harisch 14.60%
Shareholder structure
mainly consist of
freefloat
Management has been
steadily committed
Founded in 1983 as pcplus
GmbH
IPO as varetis AG in
2000
Close Brothers Seydler Research AG | 14

GoYellow Media AG
Aside local searches, the company acquired on 4 November 2004 Telix AG, whose
services included carrying out a number of functions for providers of value-added
telephone services. However, at 31 Dec 2007 this service was discontinued by the
group. At the end of 2005 varetis AG sold its subsidiary varetis solutions GmbH to
one of its main competitor Volt Delta Resources LLC.
Since 2006 the group has been firmed as GoYellow Media AG. In addition, the
group started a new telephony platform in 2006, called PeterZahlt.de. In October
2007 the online e-commerce platform peterzahltaus.de has been launched.
Due to strategic changes in the business model of GoYellow Media AG the group
sold 10% of GoYellow GmbH to the publishing group of the yellow pages in 2007.
Likewise the group changed its payment structure of goyellow.de towards a
pagerank payment system. The modification of the subscriber commissions has
positively affected the income statement.
www.cbseydlerresearch.ag
Since 2006 GoYellow
Media AG
Close Brothers Seydler Research AG | 15

GoYellow Media AG
Business model
GoYellow Media AG has established a business in the area of information services
that ensures a fast development process for new innovations, while remaining
highly productive without jeopardising the working processes. Over the years the
group managed to attain a strong market position in several promising sectors of
the e-commerce business. Besides, the group is able to focus on its core strategic
plan and development progresses, as well as relatively low fixed costs and capital
expenditures which lead to a higher margin level. As a consequence, GoYellow
benefits from its highly scalable and effective production capacity within the
business segments.
The company has three core business units: GoYellow.de, PeterZahlt.de and the
recent established 118000 service. Overall, the services of GoYellow play an
important role within the strategic orientation implemented by the group.
Business model
GoYellow GmbH
Goyellow.de
Source: GoYellow Media AG, CBS Research AG *PeterZahltaus.de discontinuation already initiated
The company currently generates most of its revenue from the GoYellow.de
segment. However, the present focus and the introduction of new products are
expected to play a more important role over the next few years. The group‟s
portfolio of online advertising options is unique and special in the German market
which enables ads to be broadcasted to specific target groups online without any
waste coverage.
The main focus of the company‟s business model is to further strengthen the shift
in the revenue structure to a more balanced level. The bilateral enhancement of
GoYellow.de and other e-commerce business units should bring the company to a
Pareto situation. On basis of this wide-ranged business model, GoYellow has built
up a sophisticated product portfolio comprising the local search segment as well as
the telephony segment.
www.cbseydlerresearch.ag
Peter Pays AG
Peterzahlt.de
Peterzahltaus.de
Cheap Calls
118000
Telefonvermittlung
GmbH
118000 service
Business model
enables fast process
for new innovations
Three core business
units
Biggest revenues
percentage
corresponding to
GoYellow.de
Main focus is further
strengthen the revenue
structure to a more
balanced level
Close Brothers Seydler Research AG | 16

GoYellow Media AG
GoYellow GmbH
GoYellow.de
The GoYellow segment reflects the benchmark figures of the internet portal
GoYellow.de, which was introduced on 15 October 2004, offering small and
medium-sized shops a platform for an individual presentation of their business or
scopes of services. The site provides currently contact details for around 34m
private individuals and businesses throughout Germany, real-time public
transportation schedules for all of Germany, weather information, opening hours,
seasonal data on swimming lakes and ski areas, and a great deal of other useful,
clearly categorized information. Over the past five years, GoYellow.de has become
one of the Germany‟s most frequently visited websites.
Homepage GoYellow.de
Source: www.goyellow.de
The GoYellow.de directory assistance service became one of the most popular
online addresses in Germany. The ability to search for individuals and businesses
using dynamic aerial images and the incomparably large pool of current local
information has made the portal an important everyday reference tool. Besides, the
online portal is an ideal way for small and medium-sized companies to present
themselves to a large number of potential customers throughout Germany in an
economical, up-to-date and attractive way. Thereby, businesses can place their ads
themselves online or book them through a yellow pages media consultant in their
region.
Product overview
Along with regularly updated contact information for private individuals and
businesses, GoYellow.de offers timetables for public transportation, weather
forecasts, traffic reports and a variety of seasonal recreational tips. The portal has
added over 150,000 listings for restaurants, hotels, tradesmen, doctors and service
providers throughout Germany which have been reviewed by customers and
www.cbseydlerresearch.ag
GoYellow.de is an
online directory
assistance service and
one of the top player
Broad product portfolio
under one roof
Close Brothers Seydler Research AG | 17

GoYellow Media AG
patients. The search engine also includes map searching with route planning.
According to the company, this stage of expansion is still extendable.
Besides the general extension of the contact information database, it is planned to
enlarge the map search engine in conjunction with a partner company in 2010.
GoYellow also wants to support the sales activity by launching a new marketing
campaign as well as arrangements to boost up the revenue level.
Distribution
In contrary to the distribution channels of existing internet portals GoYellow.de is
not only limited to the sales approach via internet. In addition to the current
measurements by promoting the platform via online advertising the company also
has the opportunity to access the full potential of the yellow pages publishers,
which have a big reputation and potential to canvass new customers. GoYellow
started an open-end sales cooperation with the yellow pages publishers, whose
stake in GoYellow GmbH is currently 10%.
Overall, the publishing companies are fully responsible for the active distribution of
the internet platform. The service in return is a commission for every new payer. As
the company did not provide any information about the detailed percentage for the
publishers, we assume that about 40% of the monthly fee is related as commission,
corresponding to about EUR 12 per paying customer.
Pricing model
In 2008 the group changed its pricing model. In the course of that GoYellow.de has
significantly expanded the options for its free basic listings for businesses
(GoBasic). In contrast to the past the businesses have more freedom to design
their hit list (company profile).
GoBasic benefits at zero costs
GoBasic
�Full company description
�40 individual key words for
search optimisation
�Continual search engine
optimisation atGoogle
�Customer enquiry matched
for regional focus
�Notation on Goyellow maps
Source: GoYellow Media AG, CBS Research AG
The shift from the old pricing model in which the users have to pay for the design
as a whole the companies can now design a multi-page web presence and yet will
pay only for prioritised display in the search results listings (GoTop). The current
charge for the GoTop model is according to the annual contract EUR 29.90 per
month excluding VAT.
Users of GoYellow.de will therefore benefit from the significantly higher proportion
of qualified hits. As well as adding value to the service through more content,
GoYellow.de also expects that companies will be more willing to pay for the
prominent placing of an advertising presence that is already online. For comparison
www.cbseydlerresearch.ag
Further enlargement
plans for 2010
Distribution channels
are outsourced to
Yellow pages
publishers
GoYellow.de pays 40%
commission for the
distribution effort
GoBasic model
GoTop model
Close Brothers Seydler Research AG | 18

GoYellow Media AG
only, major search engines like Google have already been successfully employing
this strategy for many years.
GoTop benefits at EUR 29.90 per month
Source: GoYellow Media AG, CBS Research AG
Peter Pays AG
The PeterPays AG operates and markets the successful Internet portals
PeterZahlt.de and PeterZahltAus.de, as well as the recently developed iPhone
application Cheap Calls. PeterPays AG is a 100% subsidiary of GoYellow Media
AG and currently employs nearly 20 employees.
PeterZahlt.de
GoTop
�All GoBasic services
�Positioning at top of the
ranking
�Highlighted illustration
�Ad free
�Database entry in up to 8
industries
�Locating is optimised for
regional tracking
According to the group, PeterZahlt.de is the world's first telephony portal through
which you can make free domestic and international phone calls. Through
PeterZahlt.de, customers can make free national and international calls to 30
countries every day between 6:00 am and midnight and talk for up to 30 minutes on
any conventional telephone. Users with a DSL broadband connection, for example,
do not incur any costs for making calls to the USA or China. This service is
financed through advertising that is displayed during the interview on the screen.
Due to the very high mobile phone costs PeterZahlt only provides calls to mobile
phones of 30 seconds in length.
Homepage PeterZahlt.de
Source: www.PeterZahlt.de
www.cbseydlerresearch.ag
Peter Pays consists of
three independent
units
World first telephony
portal
Close Brothers Seydler Research AG | 19

GoYellow Media AG
Processing
The call duration is limited to 30 minutes and it is demanded that during the
conversation the caller conforms its own personal interests at the displayed
information program. To use the call free of charge service through PeterZahlt.de,
the caller has to enter the number of the interlocutor in the first box and the own
phone number in the second field. In case the preferred country (overseas calls) is
listed in the "supported countries", an international call is also possible. To start the
conversation the caller can choose between PeterZahlt.de Classic and Autodial.
PeterZahlt.de Classic
Using the service PeterZahlt.de Classic the caller has just to click after entering the
phone number to "now", and the provider will call the prompted number: First, the
caller‟s phone rings, then that of the dialed interlocutor. After both have withdrawn,
PeterZahlt.de will turn up the connections.
Autodial
For the Autodial service not PeterZahlt.de calls you at your own phone number, but
the user calls PeterZahlt on a normal German landline number. This fixed number
is calling back and therefore, the caller can still phone for free. The process of
autodial is very simple. As many of the German users have a flat rate to the
German fixed network, but must pay high fees for international calls. From
PeterZahlt‟s perspective this service is less expensive, because the call-in to the
users are not required anymore.
Cheap Calls
GoYellow Media AG developed an iPhone application, called CheapCalls, to
significantly save money on overseas calls. Currently, for a total of 40 countries
every call costs EUR 0.29 per minute. Calls can even be made to cell phone
networks at the same low rate. The application is free to download from the Apple
Store as well as on the homepage (www.cheapcalls.de). Up to now the service is
only available for iPhone users, but the company plans to provide this new service
tool for all smart-phones, which should be realized within the next year. According
to the company, the launch of this application was successful as within the first few
days already more than 10,000 users downloaded the application. However, a first
indication about the consumer acceptance is not expected until 1Q 2010E.
PeterZahltaus.de
The created bonus online portal will be shortly discontinued from the group‟s
operating business and the database of PeterZahltaus.de has already been sold to
AdiCash GmbH. Therefore, we will not define the business model of
PeterZahltaus.de as this unit is no longer important for the strategic targets of the
group.
118000 Telefonvermittlung GmbH
The company will launch a switchboard service using the number 118000 in
December 2009. At 118000, callers can get in touch with people whose contact
details are not available on public directories. 118000 treats all data highly
confidentially and does not forward them to third parties. If the requested person
cannot be reached, the caller can leave a message. The new service will thus close
the gap between directory assistance and Internet search engine. As this service is
not yet fully developed, not enough data has been available to give a detailed
overview.
www.cbseydlerresearch.ag
Processing consists of
two calling
opportunities
PeterZahlt.de classic
Autodial
Newly established
iPhone application
showed already a good
start
Discontinued within
the next 12 months
This service
construction is unique
in the European
market and therefore
promising
Close Brothers Seydler Research AG | 20

GoYellow Media AG
Strategy
Strategic premises
Overall, the company has several strategic objectives, which GoYellow plans to
fullfil in the next year. Firstly, the company intends to increase its paying customer
base at GoYellow.de. Besides, the group will improve its earnings situations in the
segments of PeterZahlt.de and the newly established services of the directory
assistance 118000 and the iPhone application CheapCalls.
As already mentioned by GoYellow, the company has plans to restructuring the
business model of PeterZahlt.de to a “German-Skype”. In case this can be realised
without bigger financial exposure the group should be able to achieve positive
earnings at PeterZahlt.de for the first time.
For 4Q 2009 and 1Q 2010 the group will establish the already announced
switchboard service 118000 which is currently unique in the German and European
market. With a manageable expenses structure the service should already be
profitable on operative level within its first year (2010E). GoYellow plans to
establish a switchboard service in order to achieve outcome quality in the directory
assistance market and, as a result, be able to influence the existent market
environment.
In addition, the group has already published an iPhone application called Cheap
Calls which enables the German mobile phone users to save money on
international calls up to 87% of the postpaid price per minute (T-Mobile). As the
software has been developed in-house the group can provide solid margins at this
new service which is expected to be around the target EBIT-margin of 30%.
Growth strategy
We expect GoYellow‟s growth story to continue over the next years as the change
in the pricing model of GoYellow will further boost the company‟s earnings situation
in short- to mid-term as well as the remodeling of PeterZahlt.de will be supportive
for the bottom line. In addition, the new switchboard service 118000 and the iPhone
application CheapCalls should boost the company to a higher level both on top and
bottom line. Combined with promising innovations with the switchboard service the
equity story should continue positively for GoYellow in short- and on mid-term
perspective.
One of the key elements of GoYellow‟s strategy is the extension of the product
portfolio with innovations that allows increase the market share as the company will
benefit from its first-mover-advantage. These benefits can not only be realised in
the business model of PeterZahlt.de in Germany but also in particular with the new
switchboard service 118000 which is currently a unique business model in the
whole European market and leads to strong entry barriers for new market entries
as GoYellow will settle all key factors (from pricing to supply of services).
Although GoYellow will continue to absorb the growth potential in its existent
segments, the company has the ability to move ahead by expanding the business
activities or even restructure the business model to improve the earnings situation
(general company target: EBIT margin ~30%) and to comply with the fast-moving
markets in the internet-related areas.
www.cbseydlerresearch.ag
The group plans to
fullfill a strategic focus
within the next years
PeterZahlt.de will be
remodelled to a
German Skype service
118000 is ready to
start within the next
months and the margin
situation seems very
promising
Cheap Calls provides a
market adavantage
resulting from the firstmover-advantage
in
Germany
General growth
strategy
Overall target EBITmargin
for new
products is at about
30%
Close Brothers Seydler Research AG | 21

GoYellow Media AG
GoYellow also aims to maintain sustainable profitability by further focusing on its
sales activities at GoYellow.de and emerging the planned VoIP-service at
PeterZahlt.de (likewise to a German type of Skype) as well as establishing a
switchboard service called 118000 as the new growth driver in GoYellow‟s
balanced business model.
By extending the portfolio of products GoYellow intends to handle the increasing
demand for directory enquiries without divulging multiple contact data to public
directories which the company will build up within 4Q 2009 and 1Q 2010. Overall,
the company plans to achieve a higher revenue and customer diversification by
expanding its portfolio of standard products and at the same time lower its
expenses on a favourable level to maintain a sustained profitability at solid margin
levels.
GoYellow.de
The company has already achieved a substantial market penetration in GoYellow‟s
segments. With the introduction of new software configuration and improved search
engine applications such as map routing or company videos, the group should be
able to expand its market share. Overall, GoYellow addresses with its distribution
channels via the yellow pages publishers nearly all relevant customer bases. The
still emerging market is expected to deliver solid growth prospects over the next
years as can be seen in the chart below. Furthermore, to improve the traffic and
sales, the group also decided to increase its activities within the social media
communities like Facebook and Twitter.
Customer base GoYellow.de
Source: GoYellow Media AG, CBS Research AG
By adjusting the pricing model towards a similar paying structure as at general
search engines like Google the group was able to improve its top- and bottom lines
as this new structure was quickly accepted by the existing customers and the newly
acquired customers which overall boosted the customer base to a higher level. The
prospects for maintaining the current growth in paying customer (GoTop model) are
very promising as the already in its first “real” year the customer acceptance was
very high. According to the company, the churn rate should settle down to about
10% per year. With its new growth drivers the company should target revenue
which we expect to achieve a size of EUR 13.44m and EUR 15.41m in 2009E and
2010E respectively.
GoYellow intends to extend its customer base by leveraging on competencies to
expand the market share of its portfolio. In the last fiscal year the group made good
progress from transitioning its product portfolio mix.
In an industry that continually produces customer-demanded technology, while
performing on volatile business models the expenses are becoming increasingly a
key competitive factor as it allows the company to remain highly innovative without
www.cbseydlerresearch.ag
Further focus on
expanding the
customer base at
GoYellow.de
Adjusting the pricing
model came in at the
right time
GoYellow plans to
expand the market
share
Close Brothers Seydler Research AG | 22

GoYellow Media AG
tying up financial resources. Moreover, the company achieved a faster time-tomarket
for its innovations like CheapCalls and the planned remodeling of
PeterZahlt.de as more resources can be utilised in product development and
commercialisation.
PeterZahlt.de
As already mentioned the group will remodel the business model of PeterZahlt.de
to a kind of “German Skype service” within the first half year of 2010. As well as at
Skype the user can use the VoIP telephony service within the service for free.
However, telephone calls to external numbers will partially costs. In doing so, the
group also noted to generate co-operations with other VoIp providers but no further
details has been released up to now.
Overall, by implementing a VoIP service at PeterZahlt.de the business model will
become more scalable and enables further growth without major capital
expenditures. This combined with streamlining the expenses structure should result
in further productivity improvements. Cost saving potential at current stage at
PeterZahlt.de are related to the telephony costs, which will be after implementing
the VoIP service at almost zero costs (0.00 – 0.01 EURcents). However, since the
advertising market is still on a lower level than in the previous years the upside
potential on top line is currently rather limited. Despite the limited top line growth
the group should be able to get profitable within 2010E.
In the past, GoYellow had a strong strategic emphasis on the expansion of its
current business model and neglected, to a limited extent, to utilise the full
potentials arising from a highly fragmented market environment. However, over the
last year this strategy focus changed towards a customer-friendly and highly-quality
approach in its core-competencies with sustainable success.
118000
In order to address the needs from all social levels in Germany the group starts to
implement a directory assistance service, called 118000, which will not provide any
contact data to the caller. For now, GoYellow will build up a comprehensive call
centre in Greifswald which coordinates the working processes of the calls and
internet applications. The group‟s focus on building up substantial capacity in this
segment over the next years should make this problem of providing too much
private contact details in public directories much more aware in Germany. Besides,
this development within this segment strategically fits into the business model of
GoYellow.
Despite the promising potentials for GoYellow in its operational business some
risks are still on the agenda. In case the directory assistance will be not successful
as planned this would stress the margin situation in the group as well on the
financial resources building up this service. To prevent such a scenario the
company has already announced that the cost situation in this segment is on a low
level and, therefore, the flop expectations are rather limited as the group has a solid
margin situation on the calls (expected EUR 2 per call) and the break even calls are
achievable. Up to now, we are confident that GoYellow will establish this service
with success to achieve profits already within the first year.
www.cbseydlerresearch.ag
German version of
Skype
After the remodelling
the business model
becomes more
scalable
In the past the
expansion ideas have
been neglected
The build up of the
switchboard service
displays a USP in the
market
Some risks are still on
the agenda for 118000
Close Brothers Seydler Research AG | 23

GoYellow Media AG
Distribution and marketing
The company‟s operational future will depend on its capability to materalise on its
strong technological expertise by monetarising its sophisticated products in an
economically effective way. Particularly the establishment of the distribution
channels via the yellow pages publishers boosted the company towards a new
level. Overall, the company aims to achieve better product awareness with its
distribution and marketing acitivities.
In order to improve the after-sales service and the relationship to its customers,
GoYellow has added resources via the publishers to their sales workforce. In doing
so, the company has particularly improved the communication to the customers
and therefore the customer satisfaction leads to rather low churn rate of about 10%
per year.
Furthermore, the group developed a new communication campaign which should
start within 1Q 2010 as the newly established service line 118000 should launch its
service in February 2010. Overall, the group has a campaign budget for 2010E
amounting to about EUR 5m.
Future projects
The diversification of the product portfolio with the new innovations as well as the
introduction of new versions of its existing products is one of the key elements of
GoYellow‟s strategy. The company intends to tap new niche segments and price
categories which have been neglected by competitors. With the expansion of its
product portfolio GoYellow aims to expand and diversify its customer basis by
entering new niche segments.
New innovations and further added value shall not only attract new customer but
also increase the incentives for existing customers. On the basis of the current
R&D and production capacities, GoYellow is able to introduce new strategic ideas
within one fiscal year in case the ongoing business models have to be remodeled.
Given the high degree of market saturation in its underlying markets for
GoYellow.de, the expansion of the product portfolio and the shift in the pricing
model was in our opinion the right approach to achieve higher revenues in its
segment. Overall, GoYellow is in a favourable position to expand its general market
share over the next years.
www.cbseydlerresearch.ag
Distribution depends
on the success of the
yellow pages publisher
Communication
campaign in 2010 for
up to EUR 5m
Diversification of the
product portfolio by
new innovations and
entering new niche
segments
Favourable position to
expand GoYellow’s
market share
Close Brothers Seydler Research AG | 24

GoYellow Media AG
Market development
The local search industry is generally a very competitive and fragmented market
driven by the fact that the industry is marked by considerable volatility in cycles
where strong growth periods are followed by sharp downturns. The cycles are
characterised by extreme changes in demand and supply.
Considering the business model of GoYellow the market environment can be
divided into two patterns – local search and online advertising. Although the group
also comprises telephony services in its business model as this has been
restructured and, therefore, a clear market watch can be obsolete in case the
business model of PeterZahlt ends up not as it is up to now expected (“German
Skype service).
Local search & directory assistance
The trend from directory assistance to internet-related search which is noticeable
over years continued in the 2008 fiscal year. According to a GfK study of October
2008 already 34% of all user requests are by online search engines. The classic
directory assistance business, however, is declining in spite of an increasing
demand for more extensive services as well as advanced directory assistance
solutions like the newly established service 118000 by GoYellow. This development
should result in capacity adjustments of GoYellow and other service providers like
Telegate on a short- and medium-term.
In addition, according to recent figures from comScore, the use of search tools to
find local businesses, products or services worldwide grew by 58% last year to
reach an annual total of 15.7bn searches. By comparison, overall U.S. Internet
searches grew just by 21% to around 137bn in 2008. The data shows that more
and more Internet users are logging on to find local businesses, potentially driven
by the increase in use of mobile Internet and the availability of map routing like
Google or GoYellow. The comScore study measured real-life Internet browsing,
buying and transactional activity of approximately one million Internet users who
provided permission to be monitored from December 2007 to December 2008.
Online advertising
In contrary to the US markets the European advertising markets are brighten up
where interactive advertising has taken up its rightful place as a permanent feature
in marketing strategies by different sectors. On the important German market, EUR
350m gross advertising were channelled into the Internet in the first quarter of 2009
according to Nielsen Media Research, indicating an increase of 15.1% against the
previous year.
The cumulated size of the European online advertising market in 2008, as counted
by IAB Europe in collaboration with PwC, amounted to EUR 12.9bn. The results of
the pan-European „Internet Ad Barometer 2009 survey” also indicate that the
market is stabilising. According to this, 70% of the marketing decision-makers
polled wanted to increase their online expenditure further; these are the findings by
the European Interactive Advertising Association (EIAA) which commissioned the
survey. Growth on the Internet is likely to take place at the cost of traditional media.
There is also a trend towards cross-border campaigns. 16% of the marketing
decision-makers polled spend their online campaign budgets in at least two
European countries. Western Europe continues to be the most attractive market for
international online campaigns thanks to the comparability of culture and marketing.
www.cbseydlerresearch.ag
The local search
industry is a very
fragmented market
GoYellow-related
market divided into
local search and online
advertising
The trend towards
internet-related
searches helps
companies to further
focus on the customer
base
Online search tools
grew faster than the
general search market
The online advertising
market is on the mend
Close Brothers Seydler Research AG | 25

GoYellow Media AG
France and Germany are relatively mature online advertising markets. In Italy and
Spain, on the other hand, where Internet use is less widespread, the online ad
markets are developing at a slower pace. There, television remains the
overwhelmingly dominant advertising medium, slowing the pace of EUR moving to
the Web. In all four countries, total media ad spending has plunged due to the
recession. But online has been the most resilient performer throughout the
downturn. Internet ad spending will post important gains in 2009 and regain
momentum next year.
According to the Interactive Advertising Bureau Europe (IAB Europe),
PricewaterhouseCoopers (PwC) and Screen Digest, paid search has proved the
most popular online ad format in these tough times, while European marketers‟
commitment to display, classified ads and e-mail has been somewhat weaker.
Online ad formats 2009E (dark) vs. 2010E
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
Source: IAB Europe, PWC, Screen Digest
The share of ad spending going online in Europe‟s major countries varies widely.
Sources agree that the proportion is highest in the UK, where by one estimate it
recently surpassed spending on television. GroupM reported that online advertising
will account for 30% of all UK ad spending in 2009, compared with 14.3% in
Germany and 11.4% in France. In Italy (7.5%) and Spain (10.8%) the percentage of
online advertising is well below the worldwide average of 13%. Besides, Germany's
online advertising market grew by 17% in the first three quarters of the year to just
under EUR 1.1bn, the Bitkom industry association said.
Share of online advertising expenses by countries
Source: GroupM
8.0%
11.4%
The global advertising market is currently characterised by cautious investment, yet
the online advertising market continues to grow, even in the crisis year of 2009.
Compared with the previous year, expenditure on online advertising will rise by
10% as predicted by the Circle of Online Marketers. The gross volume of
www.cbseydlerresearch.ag
-0.1%
4.8%
-4.4%
-0.5%
2.2%
Search Display Other formats Total
6.5%
France and Germany
are two big advertising
countries with strong
bias to the online
market
The growth in German
online ads are
comparable to the big
four countries in
Europe
Close Brothers Seydler Research AG | 26

GoYellow Media AG
investment in the fields of conventional online advertising, search word marketing
and affiliate networks should exceed the EUR 4bn threshold for the first time in
2009. It will also be the first time that more than EUR 2bn will have been invested in
conventional online advertising with an underlying growth rate of 10%.
If estimates of OVK (Online Vermarkterkreis) are correct, affiliate marketing
investment volumes will exceed EUR 300m for the first time in 2009 – the segment
is exhibiting the strongest growth of all three fields, with increases of 15%. The
conservative prediction that the Circle of Online Marketers made in spring has so
far been confirmed. Compared to the advertising sector as a whole, online
advertising is thus emerging from the crisis much stronger.
Online advertising revenues by segments (in EURm)
Source: OVK
www.cbseydlerresearch.ag
Search marketing has
a strong growth
potential in the next
two years
Close Brothers Seydler Research AG | 27

GoYellow Media AG
Competition
GoYellow Media AG operates in a highly dynamic and competitive environment
which is mainly dominated by a large number of small- and medium-sized
companies. The company‟s competitive environment comprises not only those
players who strictly focus on online services, but also indirect rivals from advertising
and telephony market.
Given the current situation in the online advertising the market has become even
more competitive as the top line performance has declined and was burdened by
the stressed sentiment. However, despite this momentum we are confident that
GoYellow will be able to continue its ongoing strategic path and further expand its
market share.
To define the competitive environment it has to be mentioned that GoYellow to a
large extent operates in a niche segment. Therefore, it is difficult to find companies
which have similar business models similarto GoYellow. Besides, the online market
is highly competitive and characterized by rapidly changing demand.
We chose six companies whose business models are similar to GoYellow‟s one to
a specific degree. We outlined the margin situation of these companies in the table
below. However, as we already mentioned in the Peer Group segment from the
Valuation section, Telegate, Yell and Eniro focus on the “Yellow pages” segment.
There is a vast more number of companies that are involved in the general “yellow
pages” unit and amongst others Pages Jaunes (France) and SEAT (Spain).
Overview
Source: Bloomberg, CBS Research AG
GoYellow.de
Within this highly fragmented market, GoYellow is positioned as a well-known
provider with strong expertise in the German market. Apart from international
operating providers, the competitive landscape is mainly characterized by a large
number of medium sized companies. Compared to most of its competitors,
GoYellow still shows a very good upside potential in the margins as well as in the
top line growth potential over the next few years.
Related to the internet related expertise GoYellow has in comparison to other
German “Yellow pages” providers a competitive advantage as GoYellow has
already installed a fast-growing search engine with high brand awareness. And
since the requirements to fullfil the demand of the needs are becoming more
challenging most of the smaller providers face serious challenges to deliver
www.cbseydlerresearch.ag
Highly dynamic and
competitive
environment
Online advertising
market became much
more competitive in
the last year
Several well-known
providers dominate
their home markets
Smaller competitors
could get serious
challenges in the
future
Close Brothers Seydler Research AG | 28

GoYellow Media AG
competitive solutions. Therefore, many of the smaller companies are expected to
lose competitive ground over the next years.
PeterZahlt.de
Beside GoYellow.de, for the other segments it is quite difficult to define a clear
competition. Particularly, as the group currently operates a strategic shift to a VoIP
provider it is not clear in which direction the new PeterZahlt unit will be realigned.
Therefore, it would be the easiest to compare the future PeterZahlt with known
providers like Skype or Jajah. However, as long as the new business model of
PeterZahlt.de is not fully comprehensible for deeper access to the competition it
would make no sense at the moment.
118000
Regarding the switchboard service, it is even harder to judge the competitive
environment. We already mentioned that this service is very unique in the
European market and therefore the competition is up to now not determined.
Cheap Calls
In the segment of Cheap Calls the market is very versatile. There are a lot of
smaller iPhone and other applications which are used to help the callers to save
money on calls. However, in comparison to the most service providers Cheap Calls
are currently the only service in Germany and it is not expected that in the near
future the competition will becoming stronger. Considering the worldwide market
three providers are adequately comparable to Cheap Calls – Vonage.com,
Truphone and Call Global whereas Truphone probably the biggest and most known
provider of these three services. Comparing the pricing structure of these three
service providers with Cheap Calls the spread is to a large extent marginal.
However, considering the European market Cheap Calls provides more countries
at low costs.
www.cbseydlerresearch.ag
Difficult to define a
clear competitive
environment as the
business will be
remodelled
Competition mostly
from US companies
Close Brothers Seydler Research AG | 29

GoYellow Media AG
Financials
Historical financial development
After a long transformation phase, the company has stabilised its operative
performance over the last five quarters, as a consequence of restructuring the
business model and tightening the strategic goals of the group. The company
introduced a redefining process of the core competencies of GoYellow until 2008
and as a result achieved the turnaround.
Over the period 1Q 2008 – 3Q 2009 the company experienced a top line growth of
CAGR 14% and managed to become profitable. Along with steady improvement in
net income and EBIT margin, the company pushed ahead with implementing a
more focused business model with the main target on its goyellow.de segment. In
addition, the company realised its strategic plans of further expansion of the
business model and installed new products in the online and telephony market
(PeterZahlt.de, Cheap Calls, 118000 switchboard service).
Revenue vs. net income (in EURm)
5.00
4.00
3.00
2.00
1.00
0.00
-1.00
-2.00
-3.00
2.23 2.22
-0.99
Source: GoYellow Media AG *3Q 2008: One-off-effects (amongst others sale of GoLocal GmbH&CoKG)
Currently, the company achieved a significant growth momentum after achieving a
sustainable level of profitability. The development of a broader product portfolio in
new potential growth segments of the online and telephony market enabled the
company to return to profitability and achieve its current sophisticated growth
potential. As seen in the chart below, GoYellow boosted its EBIT-margin over 30%,
which is likewise the targeted margin level for new products in the business model.
Gross profit margin vs. EBIT margin (in %)
150.0%
100.0%
50.0%
0.0%
-50.0%
-100.0%
-150.0%
Source: GoYellow Media AG
www.cbseydlerresearch.ag
-1.70
4.08
3.29
Revenues Net income
4.65 4.48 4.38 4.37
1Q 2008 2Q 2008 3Q 2008* 4Q 2008 1Q 2009 2Q 2009 3Q 2009
25.1%
61.5%
-19.8%
68.7%
90.6%
13.0% 9.2%
66.4%
-47.6%
0.47
53.1%
-79.1%
0.88
Gross Profit margin EBIT margin
76.3% 77.7%
1.16
1.26
85.1% 89.6% 93.1%
-136.1%
1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009
-0.3%
16.2%
CAGR of 14% in the top
line
Currently a significant
growth momentum
26.7%
34.1%
Close Brothers Seydler Research AG | 30
35.9%

GoYellow Media AG
9M 2009
In 3Q 2009, the company maintained its growth momentum and was profitable for
the fifth consecutive quarter. The company´s top and bottom line performance in
3Q 2009 was as impressive as in the previous quarter, considering the fact that the
overall online advertising industry has still problems to generate adequate revenues
in this segment. Moreover, the third quarter was the best quarter GoYellow has
ever achieved, despite the mentioned troubles with PeterZahlt.de and the online
advertising market.
Besides the expanded GoYellow.de pricing model the group also announced that
Apple had accepted the Cheap Calls application for the iPhone. According to
general T-Mobile mobile phone postpaid contracts the user can save up to 87% of
the costs for international calls. Already 40 countries are included in the acceptance
list of this application. The company has already noted that several thousand users
downloaded the application to its iPhone, however, significant data about the ARPU
are not yet published.
GoYellow Media AG posted in the first nine months revenues of EUR 13.23m,
indicating an increase of 55.3% on y-o-y basis. The growth in revenues is
attributable to the expanded sales agreements for the GoYellow.de online directory
service signed in August 2008. Over the same period, gross margin was at 89.2%,
corresponding to EUR 11.81m. Overall, the company achieved a net profit of EUR
1.26m or EUR 0.50 per share.
Net revenues for third quarter posted an increase of 7.2% in comparison to
previous year by generating EUR 4.37m. The gross profit margin of 93.1% is higher
than any margin ratio before. The positive net income of EUR 1.26m in 3Q 2009
was not as high as the previous year, which included amongst others one-off
effects from the sale of GoLocal GmbH&CoKG in 3Q 2008.
The company´s cash and cash equivalents amounted to EUR 10.62m, indicating an
increase of EUR 4.73m over the balance at the end of FY 2008. During the third
quarter of 2009 the company generated cash from operations of EUR 2.28m,
compared to a positive cash flow of EUR 1.98m recorded in 3Q 2008. Within the
third quarter of 2009 the company was able to reduce the restricted cash from EUR
0.66m to EUR 0.17m.
Source: GoYellow Media AG
www.cbseydlerresearch.ag
Growth momentum
sustained in 3Q 2009
On yoy revenues
increased by +55.3% in
9M 2009
and net profit came in
at EUR 1.26m
Decreasing restricted
cash towards EUR
0.17m
Close Brothers Seydler Research AG | 31

GoYellow Media AG
Outlook
Forecast 4Q 2009E
Taking into account that the fourth quarter will be as profitable as the first nine
months 2009 this fiscal year will end very positively. Overall, we expect the group to
achieve total revenues of EUR 17.64m, indicating a 33.9% growth yoy. Therefore,
4Q revenues will amount to EUR 4.41m. The estimated gross profit margin of
91.8% in 4Q leads to a margin for full year of 89.9%, corresponding to EUR
15.86m.
The operating profit (EBIT) of the group is expected to amount to EUR 0.92m in 4Q
and, thus, EUR 5.18m in 2009E, indicating an EBIT-margin of 29.4%. Summing up
all expenses, the net income attributable for shareholders should be at EUR 3.80m
for full year 2009E (4Q: EUR 0.50m). The reason for the lower EBIT-margin in 4Q
is the expected start-up expenses for the switchboard service 118000, which are,
amongst others, personnel costs for the call centre. Additionally, the ongoing slump
in the advertising income at PeterZahlt.de will slightly burden the figures in the last
quarter.
Source: GoYellow Media AG, CBS Research AG
2009E – 2011E
The significant growth momentum which GoYellow has achieved over the last two
years should also maintain in the course of the fiscal year 2009E. In addition,
considering the current product portfolio (including the new units 118000 and
Cheap Calls) we are convinced that GoYellow is favourably positioned for the mid-
and long-term. However, the final growth impact for the group will not be clearly
seen until 1H figures for 2010E.
Overall, we consider the improved business model of GoYellow.de, in particular the
change of the pricing model, as the current cash cow of the group and by
successfully establish the switchboard service the company yield its fruits of its
first-mover-advantage in this specific area of directory assistance.
Strategically, GoYellow‟s target is to improve its profitability to a sustainable level
which in company‟s opinion is achievable with an EBIT-margin of about 30% for the
product portfolio. We believe that the company‟s growth momentum will continue
and even manage to boost its top and bottom line to a higher level in the mid-term
driven by the combination of following trends and assumptions:
▪ Favourably positioned in the growth segments of general online services: The
company currently participates in the ongoing growth in the market segment of
online directory assistance. In the course of the online shift towards online
www.cbseydlerresearch.ag
Strong top line growth
in 2009E
...as well as on
operating level
A significant growth
momentum
GoYellow.de is
currently a cash cow
Target EBIT-margin
30%
Growth trends:
Well positioned in the
market
Close Brothers Seydler Research AG | 32

GoYellow Media AG
search activities the group is well positioned with its GoYellow.de unit, whose
brand awareness is already high
Higher revenues in its existing markets: With the new pricing model
GoYellow.de has introduced, the group intends to tap in its existing market in
which the group already is present. The full potential for new paying customer at
GoYellow.de is not yet fully developed as the pricing model and the marketing
effects are still not as effective as it is possible. Despite the strong competition
on this specific area we are convinced that GoYellow will further enhance its
customer base at GoYellow.de and, therefore, further improve in the long run
the profitability of this unit and the group as a whole
General recovering of the (online) advertising market from 2H 2010E on: Since
first indications about the recovery of the (online) advertising market came up to
the general expectations about a recovery in this area is just a matter of time.
As we are convinced that from 2H 2010E the market should succeed in
overcoming the downturn PeterZahlt.de will benefit from this effect resulting
from higher advertising revenues. Besides, until 2H 2010 the group will manage
to restructure and remodel PeterZahlt.de towards a “German Skype service”
and, thus, the cost structure will already be on a lower level, corresponding to
an improved bottom-line performance in the mid-term. Overall, we expect that
PeterZahlt will generate revenues of EUR 4.0m in 2010E and EUR 4.75m in
2011E, respectively
Telephony application Cheap Calls‟ market penetration: This service in general
will not be a strong growth driver for the group. However, the application is costeffective
for every user (free download via AppStore and several download
platforms) and has no disadvantage in return. Therefore, we believe that this
service can generate revenues up to EUR 0.4m in 2011E. Despite this low
share on the group‟s future growth it fits very well the product portfolio of
GoYellow which connects (online) directory assistance services (GoYellow.de,
118000) with telephony services (PeterZahlt.de, Cheap Calls)
First-mover-advantage with switchboard service 118000: Before the group will
benefit from the establishment of this service GoYellow has to finance the
marketing campaign they are launching next year with a marketing budget of
about EUR 5m. This will have an effect on the financial statement of 2010E,
which can be seen at the Appendix. Overall, resulting from this one-off expense
the group will achieve an EBIT-margin of approx. 10% in 2010E. However, this
investment will not burden the group‟s cash flow situation but boost the
company‟s top and bottom line towards a higher level and should already
generate a positive EBIT on quarterly basis in 2H 2009E
Generally speaking this new service line will bring GoYellow up to a new level of
operational performance. Additionally, as the group is the first mover on this service
the chances of success are very promising. According to the management,
revenues in the range of EUR 5 – 10m seems a realistic scenario for 2010.
Resulting from an inscrutable revenue potential we have chosen three scenarios for
the revenue potential for the switchboard service.
As seen in the chart below, we regard the management figures in the scenario
“Ambitious”. The two other scenarios “Optimistic” and “Conservative” are much
more cautious than the prediction of the management. Overall, we decided for the
time being to evaluate the 118000 unit with the “Conservative” approach as long as
we can clearly assess the real growth impact for the group. By doing so, revenues
www.cbseydlerresearch.ag
Improved exploration
of the market potential
Recovering in the
(online) advertising
market will support the
performance of
PeterZahlt
Cheap Calls will
manage to contribute
profit
First-mover-advantage
at 118000 will boost
the business model to
a new level
Management expects
revenues of EUR 5-10m
at 118000
Scenario model to
clarify the revenue
potential
Conservative scenario
Close Brothers Seydler Research AG | 33

GoYellow Media AG
of EUR 3.5m indicate about 1.75m calls, as we expect a price of EUR 2 per call.
For 2011E this would correspond to 2.1m caller, indicating a growth of about 15%
yoy.
Scenarios for 118000 (in EURm)
Source: CBS Research AG
Summing up all these growth drivers the mid-term prospects for GoYellow seems
very promising. In case our “Conservative” approach fits the general view the new
service could already account for about 16% of the group‟s revenues. Besides,
from 2011E on we expect this new service to generate a positive EBIT on annual
basis. This development, in our opinion, should be the start into a new level of
operating profitability and should show the required sustainability.
Revenues by units (in EURm)
30.00
25.00
20.00
15.00
10.00
5.00
0.00
0.00
4.20
13.44
Source: CBS Research AG
Similarly the revenue growth in 2009E the EBIT will also further rise. In comparison
to the previous year, the group should achieve an EBIT of EUR 5.2m in 2009E,
corresponding to an EBIT-margin of 29.4%. Despite the increasing marketing
expenses in 2010E we are confident that GoYellow will also be able to keep its cost
structure manageable in the mid-term.
Supported by a positive launch of the 118000 service in 2010E this service should
firstly achieve a positive EBIT-margin on full-year figures in 2011. As the expenses
for the switchboard service should be simply structured we believe that the group
will achieve an EBIT-margin of 29.8% in 2011 though the marketing campaign for
the new directory assistance service was effective in the advertising efforts.
In the long run we are convinced that the top line growth of GoYellow will further
continue and the EBIT-margin will settle down at about of 25% in 2018E, which is a
conservative assumption.
EBIT vs. EBIT-margin
www.cbseydlerresearch.ag
3.50
0.25
4.00
15.41
4.03
0.40
4.75
17.38
2009E 2010E 2011E
118000
CheapCalls
Peterzahlt
GoYellow.de
Outlook seems
promising
From 2011E on 118000
will generate profit on
annual base
Expected EBIT-margin
in the long run at 25%
Close Brothers Seydler Research AG | 34

GoYellow Media AG
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Source: GoYellow Media AG, CBS Research AG
Overall, we think the company´s growth prospects and fundamentals are very
promising in the next years. GoYellow has achieved an excellent mix between
existing products which just started to generate significant volume sales and
promising services like 118000 and Cheap Calls. Given the company´s product
portfolio we think GoYellow will successfully establish the new unit within the group
and continue to maintain its growth momentum. Overall, we assumed a CAGR of
83.3% in net income over the period 2008 to 2011E and project EPS of EUR 0.57,
EUR 0.26 and EUR 1.00 for the fiscal years 2009E, 2010E and 2011E,
respectively.
EPS
1.20
1.00
0.80
0.60
0.40
0.20
0.00
-0.20
-0.40
9.0%
Source: GoYellow Media AG, CBS Research AG
Balance sheet & Cash Flow
In view of the newly established business units and improved financial figures the
balance sheet will increase over the next few years. According to our estimation,
the total assets will came in at EUR 12.79m in 2009E, of which the equity will be
EUR 7.91m (equity ratio: 61.8%).
We also expect cash and cash equivalents to be at EUR 11.13m as of the balance
sheet date. The increase of the liquid funds corresponds to the strong overall
operative performance of the group. Since the group managed to become profitable
again in FY2008 the cash situation eased up. As the group‟s profitability over the
www.cbseydlerresearch.ag
29.4%
9.9%
29.8%
1.2 5.2 2.3 9.0
2008 2009E 2010E 2011E
-0.19
0.16
0.57
0.26
1.00
2007 2008 2009E 2010E 2011E
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Excellent mix in the
product portfolio
Equity ratio up to
61.8% in 2009E
Close Brothers Seydler Research AG | 35

GoYellow Media AG
next years should further continue we forecast the cash liquids at EUR 17.93m at
the end of FY2011E.
Considering the equity ratio of the group it becomes clear that in conjunction with
the improved operational business the equity has also started to recover. From the
current stake of about 62% the group should be able to enhance the equity ratio to
75.2% in FY2011E, corresponding to total assets of EUR 21.61m and, therefore,
shareholders‟ equity of EUR 16.24m. Given the profitability in its underlying
business, GoYellow should be able to further reduce the retained losses, which had
been piled up over the recent years.
Total assets (in EUR 1,000) vs. Equity ratio (in %)
25,000
20,000
15,000
10,000
5,000
35.4%
Source: GoYellow Media AG, CBS Research AG
Overall, FY2009E has been very positive for the group both in reputation for the
shareholders as well as in the Cash Flow situation. Considering the first nine
months of the year and the performance for 4Q we expect GoYellow‟s Free Cash
Flow to amount to EUR 4.79m, which will be the highest in five years. As seen in
the chart the estimated Free Cash Flow of EUR 5.92m in FY 2011E will be even
higher than 2009E. Despite the overall expected growth of GoYellow the Free Cash
Flow in 2010E will be burdened by the marketing campaign for the newly
established switchboard service 118000 in 2010E, which amounts to about EUR
5m. Although it looks like FY2010E will stop the growth momentum of the group it is
actually just the beginning of the upcoming boost to a higher level. The company
will achieve this through the new business units 118000 and Cheap Calls as well as
the restructured PeterZahlt.de service.
Free Cash Flow development (in EURm)
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
0
Source: GoYellow Media AG, CBS Research AG
www.cbseydlerresearch.ag
47.6%
61.8%
67.5%
75.2%
7,680 8,340 12,790 14,275 21,607
2007 2008 2009E 2010E 2011E
2.25 2.13
Total assets Equity ratio
4.79
0.87
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
5.92
2007 2008 2009E 2010E 2011E
Total assets at EUR
21.61m in 2011E with
an equity ratio of
75.2%
Despite marketing
campaign positive Free
Cash Flow in 2009E
Close Brothers Seydler Research AG | 36

GoYellow Media AG
Appendix
Source: CBS Research AG
www.cbseydlerresearch.ag
Close Brothers Seydler Research AG | 37

GoYellow Media AG
Source: CBS Research AG
www.cbseydlerresearch.ag
Close Brothers Seydler Research AG | 38

GoYellow Media AG
Source: CBS Research AG
www.cbseydlerresearch.ag
Close Brothers Seydler Research AG | 39

GoYellow Media AG
Disclaimer and statement according to § 34b German Securities Trading Act
(“Wertpapierhandelsgesetz”) in combination with the provisions on financial analysis
(“Finanzanalyseverordnung” FinAnV)
This report has been prepared independently of the company analysed by Close Brothers Seydler Research AG and/
or its cooperation partners and the analyst mentioned on the front page (hereafter all are jointly and/or individually
called the „author‟). None of Close Brothers Seydler Research AG, Close Brothers Seydler Bank AG or its
cooperation partners, the Company or its shareholders has independently verified any of the information given in this
document.
Section 34b of the German Securities Trading Act in combination with the FinAnV requires an enterprise preparing a
security analysis to point out possible conflicts of interest with respect to the company that is the subject of the
analysis.
Close Brothers Seydler Research AG is a majority owned subsidiary of Close Brothers Seydler Bank AG (hereafter
´CBS´). However, Close Brothers Seydler Research AG provides its research work independent from CBS. CBS is
offering a wide range of Services not only including investment banking services and liquidity providing services
(designated sponsoring). CBS may possess relations to the covered companies as follows (additional information and
disclosures will be made available upon request):
▪ CBS may hold more than 5% interest in the capital stock of the company that is subject of the analysis.
▪ CBS may have been a participant in the management of a (co)consortium in a selling agent function for the
issuance of financial instruments, which themselves or their issuer is the subject of this financial analysis within
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▪ CBS may have been providing investment banking and/or consulting services during the last 12 months for the
company analyzed for which compensation has been or will be paid for.
▪ CBS may act as designated sponsor for the company's securities on the basis of an existing designated
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▪ Due to the designated sponsoring service agreement CBS may regularly posses shares of the company and
receives a compensation and/ or provision for its services.
▪ The designated sponsor service agreement may include a contractually agreed provision of research services.
▪ The company that is subject of the analysis may agree on a research service agreement with CBS.
▪ CBS may have significant financial interests in relation to the company that is subject of this analysis.
CBS and/or its employees or clients may take positions in, and may make purchases and/ or sales as principal or
agent in the securities or related financial instruments discussed in this analysis. CBS may provide investment
banking, consulting, and/ or other services to and/ or serve as directors of the companies referred to in this
analysis. No part of the authors compensation was, is or will be directly or indirectly related to the
recommendations or views expressed.
CBS Research AG and GoYellow Media AG have a contractual agreement about the preparation of research
reports. CBS Research AG receives a compensation in return.
Recommendation System:
Close Brothers Seydler Research AG uses a 3-level absolute share rating system. The ratings pertain to a time
horizon of up to 6 months:
BUY: The expected performance of the share price is above +10%.
NEUTRAL: The expected performance of the share price trend is between +5% and +10%.
SELL: The expected performance of the share price is below 5%.
www.cbseydlerresearch.ag
Close Brothers Seydler Research AG | 40

GoYellow Media AG
Recommendation history for the company analysed in this report:
Date Recommendation Price at change date Price Target
30 October 2009 BUY (Initiating Coverage) EUR 7.09 EUR 10.50
Risk-scaling System:
Close Brothers Seydler Research AG uses a 3-level risk-scaling System. The ratings pertain to a time horizon of up
to 6 months:
LOW: The volatility is expected lower than the volatility of the benchmark
MEDIUM: The volatility is expected equal to the volatility of the benchmark
HIGH: The volatility is expected higher than the volatility of the benchmark
The following valuation methods are used when valuing companies: Multiplier models (price/earnings, price/cash
flow, price/book value, EV/revenues, EV/EBIT, EV/EBITA, EV/EBITDA), peer group comparisons, historical valuation
approaches, discounting models (DCF, DDM), break-up value approaches or asset valuation approaches. The
valuation models are dependent upon macroeconomic measures such as interest, currencies, raw materials and
assumptions concerning the economy. In addition, market moods influence the valuation of companies.
The figures taken from the statement of income, the cash flow statement and the balance sheet upon which the
evaluation of companies is based are estimates referring to given dates and therefore subject to risks.
These may change at any time with prior notice.
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