Financial and market performance 2Q August 13, 2009

Transcription

1 Financial and market performance 2Q 2009 August 13, 2009

2 Financial performance of the Group PLN mln 2Q Q 2008 yoy % change Revenues, incl.: (13.4%) advertising* copy sales* Special Projects, incl. collections (25.2%) (4.0%) 167.9% Operating cost (9.8%) EBIT (50.7%) Operating EBITDA** (37.6%) Net profit (43.3%) Cash position PLN mln e/y 2Q09 Cash and shortterm securities Debt Net cash Available credit line PLN mln Operating cost structure 10% yoy % change 14% 70% 26% 36% 0.5% staff cost noncash expense of sharebased pay ments raw materials, energy and consumables marketing and promotion D&A The financial result affected by oneoff provision cost of PLN 2.3 mln for the cost of the additional 100 layoffs No of employees (FTE) Employment (FTE at the end of period) 168 FTEs 188 FTEs FTEs 0 2Q08 2% 2Q09 other Q08 1Q09 2Q09 Decrease: in staff cost: reduction in number of employees as a result of efficiency improvement plan; in marketing and promotion cost: reduced number of marketing campaigns and dual pricing offers; in noncash expense relating to sharebased payments. Increase: in raw materials, energy and consumables: higher volume and number of book collections; increase in energy prices. 337 dismissal notices delivered in 1H 09 Source: consolidated financial statements according to IFRS, 2Q09 * excluding Special Projects ** excluding noncash cost of sharebased payments 2

3 Ad market performance Quarterly ad spend performance Ad market structure in 2Q 2009 yoy % change 40% 30% 20% 10% 0% 10% 20% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Television 47.5% 1pp PLN 1.9 bln 17% Outdoor** 9% 1pp Internet* 12% 2.5pp Dailies 11% 2pp yoy pp and % change 30% 40% Internet* Television Radio Radio 7% 0pp Magazines 13.5% 0.5pp Outdoor** Magazines Dailies Ad market performance in 2009 steeper decline of ad spend in 2Q09; electronic media suffer the ad spend decline with one quarter delay; no signs of improvement in ad market in 2Q09; Source: 20082Q09 ad spend estimates by: Agora (print based on Expert Monitor and monitoring of Agora, radio based on Expert Monitor), Starlink (TV, Internet in 2008 display, search engines, since 1Q09 additionally classifieds, marketing), IGRZ (outdoor) * since1q09 media house Starlink changed the methodology of Internet ad market measurement; Internet ad market includes now: display, SEM, marketing and classifieds. Previously it included only display and SEM; the historical data, concerning the estimates for Internet ad market for previous reporting periods has not been adjusted adequately therefore the data is not fully comparable **IGRZ, since 1Q09 data based on a new definition of outdoor market redefined as outofhome market incl. stationary, mobile and digital advertising; the historical data has been adjusted adequately and is fully comparable 3

4 Dailies ad market performance Newspaper ad spend structure* Gazeta maintains its market share in dailies ad spend in 2Q09 if recruitment ads are excluded Fakt 7% 1.5pp Dziennik 7% 0.5pp Gazeta 38% 3.5pp Other 11% 0.5pp 2Q 2009 PLN 0.2 bln Polskapresse 13.5% 0.5pp yoy pp change Mecom (local) 8% 1.5pp Super Express 3% 0.5pp Rzeczpospolita 9% 0pp Metro 3.5% 0.5pp Top ad categories in dailies 70% announcements 14% 5pp financial yoy pp change products 6% 2pp entertainment 7% 2pp yoy % change 35% 0% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 automotiv e 9% 1.5pp realestate 9% 1.5pp recruitment 6% 7pp 2Q 2009 PLN 0.2 bln other 41% 4pp retail chains 8% 1pp 35% 70% recruitment realestate automotive announcements financial products retail chains entertainment Source: dailies ad market: display ads, Agora s estimates *major dailies only 4

5 Segment performance: Newspapers* Financial performance PLN mln 2Q Q 2008 yoy % change Revenues, incl.: (14.8%) advertising in GW (36.4%) copy sales in GW (2.9%) Operating cost, incl.: (13.0%) materials & energy % staff cost excl. noncash cost of sharebased payments marketing & promotion (17.6%) (42.3%) operating efficiency improvement plan 1.4 Decline in number of recruitment ads (by 64%) in which Gazeta holds a leadership position; Lower circulation; Increased copy price; Less effective dual pricing offer; Very competitive market; Increase in energy prices; Higher cost of production materials due to higher EUR/PLN exchange rate; Higher volume and unit cost of production of book collections; EBIT** (21.9%) Operating EBITDA**** (28.4%) *incl. Gazeta, Metro, Special Projects, contract printing Fewer dual pricing projects; Lower prices of ad purchase in media; Reduced number of advertising campaigns Source: financials: consolidated financial statements according to IFRS, 2Q 09; recruitment ads: display ads, Agora, 2Q09 vs 2Q08 ** excluding allocations of general overhead costs of Agora SA *** excluding noncash cost of sharebased payments and allocations of general overhead cost of Agora SA 5

6 Newspapers segment performance: Gazeta Copy sales of dailies Other paidfor distribution methods (2Q09) 600 Friday cover price up to PLN 1.5 Thursday and Friday cover price up to PLN 1.6 MondayWednesday and Saturday cover price up to PLN % 11% 19% thou. copies Everyday cover price up to PLN 1.8, Saturday PLN 2.0 Everyday cover price up to PLN 1.8 Everyday cover price up to PLN 3.4 MondayThursday cover price up to PLN 2.0, FridaySaturday PLN 2.5 MondayThursday cover price up to PLN 2.0, FridaySaturday PLN 2.5 Jan08 Feb08 Mar08 Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Fakt Gazeta Super Express Rzeczpospolita Dziennik 458K 379K MondayThursday cover price up to PLN K 142K 132K % share in total paid distribution 75% 50% 25% 0% Gazeta Rzeczpospolita Dziennik Other paidf or distribution methods Total sales (incl. subscription) 44% Weekly readership reach Wyborcza for iphone Fakt Gazeta No of readers 4.4 mln 4.3 mln 14.6% 14.2% Free and fast application for iphone, enabling access to news and comments from Wyborcza.pl service. The application is one the most popular free news program for Polish users of iphones. Metro 2.3 mln 7.6% Super Express 2.0 mln 6.8% Rzeczpospolita Dziennik 1.1 mln 1.0 mln 3.7% 3.3% 0% 4% 8% 12% % reach 16% Source: copy sales: ZKDP, total paid circulation, Jan 08 Jun 09, other paid forms of circulations share in total paid distribution AprJun 09; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, AprJun 09, N=12 254, CCS indicator (average issue readership); 6

7 Newspapers segment performance: Metro Financial performance Metro ad market share in 2Q 2009 PLN mln 2Q Q 2008 yoy % change Ad revenues (17.7%) Operating EBITDA* (0.7) 0.4 National 3.2% (maintained) yoy pp change Local 2.4% 0.5pp 3.5% in total 0.5pp #3 among most daily read newspapers in Poland** Warsaw 11.3% 4pp 0% 5% 10% 15% % dailies ad market share Readership reach 10% 7.6% Development of mtarget service new packages enriching the portfolio of mtarget services (e.g. mauto, mcity) online service % reach 5% 4.1% 2.3 mln readers 1.2 mln readers 0% Weekly Average issue Source: financials: consolidated financial statements according to IFRS, 2Q 09; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, AprJun 09, N=12 254, CCS indicator (weekly readership), CPW (average issue readership); dailies ad market: dailies ad market: display ads, Agora s estimates, 2Q09 * excluding noncash cost of sharebased payments and allocations of general overhead cost of Agora SA ** according to CPW index (average issue readership) 7

8 Newspapers segment performance: Special Projects (incl. collections) Financial performance Statistics % yoy % change 2Q Q 2008 PLN mln % Series 8 4 Oneoffs 8 14 Total number of projects mln Copies sold (mln)** Revenues Operating cost EBIT* 2Q Q mln Awards in Audio Book of the year 2008: The winner in the category detective story and thriller literature: The Man with White Eyes Leopold Tyrmand ( Zły ), read by: Marek Kondrat The winner in the graphics category for: Imperium. Postscriptum by Ryszard Kapuściński 6 nominations in other categories Source: financials: consolidated financial statements according to IFRS, 2Q 09 * excluding allocations of general overhead cost of Agora SA ** books, CDs, and DVDs 8

9 Segment performance: Internet Financial performance* Reach of Internet portals PLN mln 2Q 2009 display ads incl. Trader.com (Polska) Q 2008 Revenues, incl.: (1.5%) yoy % change (19.1%) vortals ad sales % incl. Trader.com (Polska) 2.3 Operating cost, incl.: % staff cost excl. noncash cost of sharebased payments promotion and marketing operating efficiency improvement plan % (51.1%) Consolidation of Trader.com (Polska) Decrease in number and intensity of promotional campaigns % reach 80% 77.3% 69.8% 60% 56.1% 41.3% 40% 37.8% methodology change 73.3% Onet.pl 63.7% Wirtualna Polska 59.5% Gazeta.pl 59.5% Interia.pl 55.6% o2.pl EBIT** (3.1) (1.9) (63.2%) incl. LLC Agora Ukraine (0.5) (0.4) (25.0%) Operating EBITDA*** (1.4) (1.0) (40.0%) 20% Jan06 Mar06 May06 Jul06 Sep06 Nov06 Jan07 Mar07 May07 Jul07 Sep07 Nov07 Jan08 Mar08 May08 Jul08 Sep08 Nov08 Jan09 Mar09 May09 Position in thematic categories Development of new competencies category Community No. of real users 5.7 M Gazeta.pl position #2 New transaction platform in portfolio of Agora s Internet segment: News, information, media Local and regional news & info Lifestyle Family, children Sports Recruitment Construction, real estate Home design 4.7 M 2.9 M 3.9 M 1.1 M 3.0 M 1.8 M 1.3 M 0.6 M #2 #1 #3 #1 #2 #1 #2 #1 without Domiporta.pl; the service is visited by ca. 419k real users; diversification of revenue streams, acquiring competencies in ecommerce and performance marketing, Source: Internet statistics: Megapanel PBI/Gemius, reach Jan 06May 09, real users May 2009 ; financials: consolidated financial statements according to IFRS, 2Q 09; * Internet division, Agora Ukraine, Trader.com (Polska) including print revenues ** excluding allocations of general overhead cost of Agora SA *** excluding noncash cost of sharebased payments and allocations of general overhead cost of Agora SA 9

10 Segment performance: Outdoor Financial performance AMS ad market share** PLN mln 2Q Q 2008 yoy % change Revenues, incl.: (10.3%) ad revenues (11.2%) Operating cost, incl.: (0.7%) execution of campaigns (27.8%) maintenance cost % staff cost excl. noncash cost of sharebased payments (10.2%) D&A % promotion & marketing (40.9%) 2Q 2009 outdoor ad spend 10% AMS 26% 0.6pp yoy pp change EBIT (73.5%) Operating EBITDA* (35.1%) Competition in outdoor market (rate card data)*** New s Outdoor 12% CPP 10% Other 14% Large partnership agreements with Neste Polska Sp. z o.o. and Inter IKEA Centre Polska SA in 2Q09 Cityboard 15% 2Q 2009 AMS 30% Using the areas of IKEA shopping malls for investment into new panels and their management Using the areas of selfservice petrol stations to build a net of billboard panels 18 square metre and backlights Stroer 19% Source: financials: consolidated financial statements according to IFRS, 2Q 09; * excluding noncash cost of sharebased payments ** IGRZ, 2Q 09, data based on a new definition of outdoor market redefined as outofhome market incl. stationary, mobile and digital advertising; excluding crosspromotion of Agora s other media on AMS panels if such promotion was executed without prior reservation *** Expert Monitor, 2Q 09, rate card data, including crosspromotion of Agora s other media on AMS panels if such promotion was executed without prior reservation 10

11 Segment performance: Magazines Financial performance Position of Avati & Logo in magazines copy sales PLN mln 2Q Q 2008 yoy % change The structure of copy sales of women luxurious magazines The structure of copy sales of magazines for men Revenues (20.9%) copy sales (11.7%) ad revenues (27.0%) Operating cost, incl.: (16.6%) materials & energy (7.8%) staff cost excl. noncash cost of sharebased payments (16.7%) promotion & marketing (32.8%) operating efficiency improvement plan 0.1 EBIT* (32.5%) Operating EBITDA** (34.1%) Twój Styl 17% Pani 10% Uroda 7.5% Joy 14% Glamour 9% Zwierciadło 6% Elle 6% Av anti 14% Hot Moda & Shopping 7% Cosmopolitan 9.5% Men's Health 24% Playboy 21% Logo 23% CKM 32% Monthly magazine advertising performance Development of Logo s online presence Media Point Group 3.8% Axel Springer 2.9% Edipresse 6.9% Bauer 14.1% Other 14.7% Gruner+Jahr 12.7% 2Q 2009 Murator 7.8% Agora 12.9% Marquard 13.6% Burda Media Polska 10.6% thou. real users Real users 193% 49 thou. 144 thou. May 2008 May 2009 yoy % change Source: financials: consolidated financial statements according to IFRS, 2Q 09; monthlies ad market: monitoring of Expert Monitor based on rate card data, 125 titles, excl. specialist titles, 2Q09; copy sales: ZKDP, May 2009; Internet statistics: Megapanel PBI/Gemius, real users, May 2008, May 2009, * excluding allocations of general overhead costs of Agora SA **excluding noncash cost of sharebased payments and allocations of general overhead cost of Agora SA 11

12 Segment performance: Radio Financial performance* Radio ad market structure PLN mln 2Q Q 2008 yoy % change Revenues, incl.: (11.0%) ad revenues (11.3%) Operating cost, incl.: % staff cost excl. noncash cost of sharebased payments (17.7%) promotion and marketing % EBIT (1.2) 1.8 Operating EBITDA** (0.2) 3.0 Broker 28% 2pp Eurozet 27% 2pp 2Q 2009 PLN 137 mln 18% Time 18% 0pp Other 6% 0pp Ag o r a 12% 0pp Polskie Radio 9% 0pp yoy pp change Daily reach % reach 12% 6% 0.2 pp yoy pp change 0.9 pp 11.9% Phot. Piotr Tarasiewicz Smooth Festival Zlote Przeboje (Golden Oldies) New prestigious event on Polish music scene initiated by Agora radio group. The festival won large popularity and attracted several thousand people. 5.8% 0% TOK FM Music stations Source: financial: consolidated financial statements according to IFRS, 2Q 09; ad market: Agora based on Expert Monitor, Agora s share incl. TOK FM, excl. brokerage; daily reach: Radio Track, MillwardBrown SMG/KRC, cities of broadcasting,15+, TOK FM: AprJun 2008: N=8 089, AprJun 2009: N=7 828; Music stations: AprJun 2008: N=11 375, AprJun 2009: N= * local radio stations (incl. TOK FM) ** excluding noncash cost of sharebased payments Change of broadcast programming in Roxy FM more programs on widely defined culture engaged in creation of valuable initiatives in public space, authorial programs, renown artists, writers and journalists as experts close cooperation with Group s other media 12

13 Summary: our objectives Execution of our main goals: Operating efficiency improvement plan; Development and restructuring of existing business areas; Taking advantage of current market conditions to enrich portfolio of Group s assets if available. 13

14 Appendix: Changes in reporting of Group s operating segments OLD Newspapers and Internet Gazeta Metro Collections Print Internet (incl. Trader.com (Polska)* and LLC Agora Ukraine) Corporate Sales Management Board cost and the overhead cost of support divisions Magazines magazines Agora Press Ltd (Company in Ukraine) Outdoor AMS Group no changes no changes Internet segment separated Corporate Sales, Management Board + and Support Divisions overhead cost of Agora SA presented in matching positions Radio local stations (excl. superregional TOK FM) Superregional TOK FM added Headquarters and New Business Development Change of name from Collections to Special Projects Newspapers Internet Magazines Outdoor Radio Matching positions NEW Gazeta Metro Special Projects (incl. collections) Print Internet (incl. Trader.com (Polska)* and LLC Agora Ukraine) magazines Agora Press Ltd (Company in Ukraine) AMS Group local stations superregional TOK FM Headquarters and New Business Development Corporate Sales Management Board and Support Divisions overhead cost of Agora SA Matching adjustments and intercompany eliminations * incl. publishing activities of Trader.com (Polska) Sp. z o.o. since June 30,

15 This presentation has been prepared by Agora SA (the "Company"). The data and information contained on the individual slides do not show a complete or coherent financial analysis, nor present the commercial offer of the Company and serve for information purposes only. A detailed description of the business and financial affairs of Agora SA is presented on website. All data therein are based on sources which the Company regards as credible. The Company reserves the right to amend data and information at any time, without prior notice. This presentation was not verified by an independent auditor. This presentation may contain slides containing statements related to the future. Such statements cannot be interpreted as forecasts or other assurances in respect of future Company's financial results. The expectations of the Company's management are based on their knowledge, experience and individual views and are dependent on many factors which may cause that the actual results may differ from statements contained in this document. The Company recommends that professional investment advice is sought in case any investment in the Company's securities is considered. 15