Investor presentation June 2006

Transcription

1 Invesr presentation June 2006

2 AGORA GROUP FINANCIAL RESULTS 2005 % change % change Revenues % % EBITDA % % Operatg EBITDA* EBIT % 83.2% % -93.7% PLN 21 mln negative contribution of Nowy Dzień Net profit % % Free cash flow % % Cash cash equivalents** % % PLN 10.7 mln of non-cash sck centive comp. ROE 11.2% 5.3pp 0.3% -14.6pp * Excludes IFRS2, cludes Nowy Dzień ** Includes short-term monetary assets 2

3 AGORA GROUP BUSINESS COMPONENTS Revenue structure* Operatg profit contribution Magazes 7% Radio 5% EBIT 2005 EBIT as % of tal EBIT EBIT as % of tal Newspaper segment (cl. Nowy Dzień) % % Outdoor 9% Outdoor Magazes % 3% % -3% Newspaper segment 79% Radio % -4.4** -133% Headquarters & non allocated % % 3 * does not clude ter-segment transactions ** cludes TOK FM Source: consolidated fancial statements accordg IFRS 2005,

4 GAZETA MARKET PERFORMANCE 2005 circulation trends newspaper market Thou copies Gazeta s circulation yoy % change 6.6% 2% 5.8% yoy % change 600 Jan Feb -2% 6% Mar -6% 3.0% 1.0% -1.9% -1 0% 3.3% y2.7% % -12.9% Jan Feb Mar 2% 6.5% % -2% 1Q05 2Q05 3Q05 Fakt Gazeta Super Express Rzeczpospolita -4.6% -5.1% -6% 0 4Q05 1Q05 2Q05 3Q05 4Q05 Advertisg share of Gazeta % share yoy pp change 50% 1.8pp 0.2pp 1.2pp 1.0pp y0.5pp 25% 42% 43% 40% 41% 43% 1Q05 2Q05 3Q05 4Q05 0% 4 Source: circulation: ZKDP, ; advertisg: Agora, estimated data

5 NEWSPAPER MARKET NEW MARKET PLAYER TRADITIONAL PLAYERS PAST ENTRANTS NEW ENTRANT Gazeta Wyborcza Rzeczpospolita* QUALITY NEWSPAPERS Sprger s new product April 18, 2006 MID-MARKET NEWSPAPERS TABLOIDS Regional players: Polskapresse Orkla* (8 titles) (12 titles) Super Express** + + Free newspapers: Metro Metropol Echo Miasta Fakt Sells for 1.5 zloty every day Target circulation 150 thou. PLN 100 mln on promo 2006 (gross) 3-5 years (5-8?) b/e Mixed messages about target audience 5 * Orkla sells media assets Mecom. ** For Sale? Bonnier announces that it plans sell assets Super Express.

6 NEWSPAPER MARKET SPRINGER INTRODUCES NEW PRICING STRATEGY Sprger announces cover price PLN 1.5 April 11 April 12 Some regional players follow suit Short-term Long-term FUTURE FUTURE MAKE MAKEUP UP OF OF THE THE PRESS PRESS MARKET MARKET Gazeta makes a strategic decision reduce cover price PLN 1.5 Hard predict level of copy sales lots of promotions Announced sales results may not be predictive of future trends Sprger s future position: - target readers? - circulation? Impact of Gazeta s market strategy (price, promotion) 6

7 GAZETA STRENGTHS AND MARKET COMMITMENT #1 OPINION-MAKING NEWSPAPER IN POLAND 19% readership 5.6 mln readers (38% high education) High circulation Powerful tradition of first dependent newspaper Pol Commitment Polish market 540 p level, dedicated journalists POWERFUL BRAND STRONG BUSINESS MODEL, HARD TO REPLICATE 19 local branches (journalists sales reps) Ad market penetration 460 sales reps Attractive local matic supplements WHAT DID WE DO RECENTLY Edirial changes: modification of layout enriched supplements: Sports, TV Guide, Employment combed with on-le service New series collectible items Kiosk subscription offer Intensive promotion marketg: image campaign, promotion pots of sale Strong position key ad categories Unmatched advertisg share LARGE AND PROFITABLE BUSINESS 7 Source: weekly readership, PBC General, Millward Brown Company SMG/KRC, Jan-Dec 2005, N=36 092

8 INVESTMENTS LAUNCH OF RECRUITMENT VERTICAL OBJECTIVE: keep #1 position job marketplace APPROACH: combed paper/ternet offer for job advertisers enhanced job seeker solution prt on-le quality content + well categorized mass of ads broad on-le functionality supported by an ternational ASP STATUS: new onle vertical launched March positive itial reaction of advertisers already one of leadg recruitment sites Pol considerable revenue growth 8 Source: market position PBI Megapanel

9 BOOKS SUSTAINABLE REVENUE AND PROFIT ENHANCEMENT 2005 yoy change 6 new collections Revenue % 1 contuation Operatg profit % 3 one-off projects Operatg marg 12% 3pp 10 million books sold yoy change 1 new collection Revenue 52-18% 4 contuations Operatg profit 12-7% 1 one-off project Operatg marg 23% 3pp 4 million books sold 19th century classics Collection of books with DVDs Fairy tales 9 Travel guides Music collection library Source: consolidated fancial statements accordg IFRS, 2005, 1Q 2006 Anthology on classical music composers with CDs

10 METRO THE LARGEST FREE DAILY IN POLAND 2.3 mln readers thou copies Metro Metropol #2 reach large cities, #4 overall Cities over 500 thou % reach Total Gazeta 34% Fakt 22% Gazeta 18% Metro 29% Super Express 10% Fakt 19% Metro 7.5% 0% 10% 20% 30% 0% 10% 20% Advertisg share 5% Warsaw, 2% nationally Daily of Year (Media Trends 2006) 10 Source: circulation: ZKDP, Jan-March 2006; readership of national newspapers: Jan-Feb 2006, weekly readership, PBC General Millward Brown SMG/KRC, Jan-Feb 2006, cities over 500 thou, N=785, tal: N=6 512; advertisg: Agora, estimated data

11 OUTDOOR SEGMENT DELIVERS PROFITS AND GROWS NETWORK 2005 yoy change yoy change Network exps No of panels Revenues % % % 5000 Operatg EBITDA % % 0 Bus shelters Net profit No of panels Market share 28.4% 1.3pp 24.7% -6.0pp % Large format panels Larger network 80 new large format panels 300 buses Warsaw Media Trends 2006 distctions: social marketg novative panels (wall-mounted frontlights, m2) 11 Source: fancials: consolidated fancial statements accordg IFRS, 2005, ; number of panels: AMS; advertisg: IGRZ monirg

12 MAGAZINES AND RADIO SUCCESSFUL GREENFIELDS AND TWO-BRAND STRATEGY MAGAZINES RADIO 1Q 06 1Q 05 1Q 06* 1Q 05* Revenues Operatg EBITDA EBIT Revenues Operatg EBITDA Average copy sales (thou copies) EBIT * does not clude TOK FM Successful green fields Two-br strategy vestment Portfolio clean-up structure reorganization New category 144 thou copies sold Monthly of Year* 12 Category exped for men Succeeded as a quarterly, now a monthly Debut of Year* Source: consolidated fancial statements accordg IFRS, ; circulation: ZKDP, January 2006; audience: SMG/KRC A MILLWARD BROWN COMPANY, Jan-March 2006, 15+, N= * Media Trends 2006 Very good performance of TOK FM audience share up 2.7%

13 ADVERTISING MARKET TRENDS IN 4Q05 AND Total ad spend growth 8.5% yoy % change TV segment performance yoy % change 9% Magazes 3.5% Dailies 8.5% 1Q Radio 15.5% Outdoor 11.5% 0 1Q yoy % change Spendg on dailies TV TV venries sold out 15% 10% 13% shift of fancial advertisg TV 9% 8.5% TV Dailies Free capacity 30% Public TV 70% % usage, prime time 5% 4.5% Free capacity 17% Commercial TV 83% 0% 4Q05 13 Source: advertisg: Agora, estimated data; audience, usage of available advertisg capacity prime time - actual data 1Q 2006 (TVP1, TVP2, TVN, Polsat), 1Q 2006: AGB Polska, prepared by Agora

14 ADVERTISING MARKET 2006 GROWTH ESTIMATES Double digit growth likely contue TV will outperform or media % yoy % change 10% % share 0.8% 0,8% 0,7% 0.7% TV yoy % change 11% 13% % 0.56% 0.58% 0.59% Magazes 0,6% 0.6% Dailies 0,5% 0.5% Radio 12% 10% 8% 6% 11% 7% E 0,4% 0.4% Outdoor 26% E 0,3% 0.3% Ad market Ad spend as % of GDP 14 Source: advertisg: Agora s estimates adjusted for average discount rate (data current prices). The estimates refer advertisg expenditures four media (TV, prt, radio outdoor). The estimates are based on rate card data of AGB Polska monirg, Expert Monir monirg, Agora monirg IGRZ monirg; CPI adjustments based on Central Statistical Office data for 2004, 2005; 2006 state budget assumptions.

15 AGORA GROUP ADOPTED DISTRIBUTION OF NET PROFIT FOR net profit PLN mln Dividend pay-out PLN PLN per per share share Dividend Dividend date date Jul Jul 12, 12, Payout Payout date date Sep Sep 15, 15, Retaed profit Remag Remag prof prof creased creased reserve reserve capital capital of of Company. Company. Agora Agora is is first first foremost foremost focused focused on on growth, growth, through through both both organic organic projects projects via via acquisitions acquisitions media media secr. secr. On On one one h, h, light light of of competitive competitive situation situation daily daily newspaper newspaper market market actions actions taken taken manage manage it, it, Company Company may may generate generate less less cash cash from from operations operations than than previous previous year. year. This This is is why why at at this this time time Company Company elected elected reta reta cash cash order order preserve preserve ability ability act act quickly quickly should should reasonably reasonably priced priced vestment vestment opportunities opportunities occur. occur. The The Company Company also also tends tends vest vest digital digital future future by by expg expg activities activities leveragg leveragg assets assets ternet ternet space. space. 15