Deutsche Bank Italian Champions Conference Milan, May 17 th 2006

Transcription

1 Deutsche Bank Italian Champions Conference Milan, May 17 th 2006

2 Disclaimer Statements contained in this document, particularly the ones regarding any RCS MediaGroup possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. RCS MediaGroup actual results and developments may differ materially from the ones expressed or implied by the following statements depending on a variety of factors. Any reference to past performance of RCS MediaGroup shall not be taken as an indication of future performance. This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned in any jurisdiction and is directed to professionals of the financial community. For further information, please contact our Investor Relations Department Federica De Medici federica.demedici@rcs.it Fabio Pavan fabio.pavan@rcs.it 2

3 Agenda Who we are RCS Recent Innovations st Quarter Financial Results Details by Business Unit 3

4 RCS MediaGroup - Who we are The Leading Italian Publishing Group MEDIA SECTOR COUNTRY Traditional Press TITLES / PRODUCTS Free Press NEWSPAPERS MAGAZINES 9 weekly and 20 monthly BOOKS Fiction and non fiction / Educational Fiction and non fiction Fiction and non fiction / Educational Partworks BROADCAST ADVERTISING INTERNET/TV National Radio Digital Radio Syndication Press Agency Adv house Outdoor adv Adv on foreign media IGPDECAUX (JV) Web sites Online & Mobile entert. TV content prod. DTT TV licence DISTRIBUTION (JV) 4

5 Group Structure 100% 100% 99,99% 98,99% 100% 43,0% Grupo 96,1% Unedisa 100% 100% 51,0% 100% 45,0% (2) 100% 34,5% (1) 100% IGPDECAUX (1) Joint-venture RCS (34,5%). JCDecaux (32,3%). Publitransport (33,2%) (2) Joint-venture RCS (45%). De Agostini (45%). Hachette (10%) Starting from 2004 FY the JVs are consolidated with Equity method 5

6 Newspapers ITALY market share 20% SPAIN market share 8% 1 1 Traditional Press Circ avg. daily copies 1 National Newspaper Traditional Press 2 National Newspaper Read per day 1 Sport Newspaper Circ avg. daily copies Read per day Circ avg. daily copies Read per day Free Press 2 National Title Circ avg. daily copies Read per day 1 copies and readership Source: Market shares are updated with latest available market data 6

7 Corriere della Sera Brand Extension DISNEY STORIES ANIMALS ENCYCLOPAEDIA ADD-ONS MAGAZINES / SUPPLEMENTS ECONOMY Corriere Economia REAL ESTATE Trovo Casa LEISURE/ENTERT. Vivi Milano/Roma WELLNESS ENCYCLOPAEDIA CLASSIC MUSIC COMICOLLECTION DVD RESTYLING APRIL 06 WOMEN: CIRC avg. copies 7

8 Gazzetta dello Sport Brand Extension SERIE MAXIMA COLLECTION Pc Games SPORT HISTORY Book Collection DVDs Football ADD-ONS MAGAZINES / SUPPLEMENTS SPORTWEEK avg. copies EVENTS TOUR OF ITALY (cycling) BEACH TOUR DVDs PAPA s s Life MILAN CITY MARATHON 2006 WORLD CUP SOCCER BALL 8

9 El Mundo Brand Extension ADD-ONS MAGAZINES / SUPPLEMENTS LA GUERRA CIVIL ESPAÑOLA DVDs FILM COLLECTION ECONOMY AUTOMOTIVE RECRUITMENT HEALTH ART BOOKS MAGAZINES FORMULA 1 DVDs ENGLISH DVDs 9

10 On line: main web sites 6,3 mn monthly unique users; 259 mn monthly pageviews 2 Info Web Site in Italy 2,6 mn monthly unique users; 65 mn monthly pageviews Sport 1 Web Site in Italy 8,1 mn monthly unique users; 263 mn monthly pageviews 1 Info Web Site in Europe 1 Spanish language site in the world Source: Market shares are updated with latest available market data 10

11 Magazines ITALY 2nd player with strong titles in the following sectors Women Family Infancy Home furnishings Business Men RELAUNCH APR 06 Weekly Circ Monthly Circ Monthly Circ LAUNCH OCT 05 Weekly Circ Weekly Circ Monthly Circ Monthly Circ Weekly Circ Monthly Circ Monthly Circ LAUNCH MAY 05 Weekly Circ Monthly Circ Monthly Circ Monthly Circ Monthly Circ Monthly Circ Source: Market shares are updated with latest available market data 11

12 Books ITALY FRANCE SPAIN ITALY, FRANCE & UK EDUCATION FICTION AND NON-FICTION FICTION AND NON-FICTION FICTION AND NON-FICTION PARTWORKS 4 Publisher 2 1 Publisher 2 Publisher 12,2% Market share 4,9% Market share DISTRIBUTION UD - Union Distribution Player In Italy 36,4% Market share in Italy Source: Market shares are updated with latest available market data 12

13 Broadcast NATIONAL RADIO DIGITAL RADIO SYNDICATION OF LOCAL RADIOS PRESS AGENCY > 5,9 mn daily listeners of news & adv services 1 Syndication News services production for own & third parties Source: Market shares are updated with latest available market data 13

14 Advertising ITALY Leader of press advertising PRESS ADVERTISING FOREIGN MEDIA ADV Sales for Group and third parties titles Advertising broker for foreign media in Italy and italian media abroad 1 Player Source: Market shares are updated with latest available market data 14

15 Joint Ventures and other activities DISTRIBUTION OUTDOOR ADVERTISING % own 45,0% 34,5% partners De Agostini Hachette Rusconi JCDecaux Publitransport Distribution to newsstands Street furniture, billboard, transport advertising, airport advertising 15

16 Agenda Who we are RCS Recent Innovations st Quarter Financial Results Details by Business Unit 16

17 RCS Recent Innovations Newspapers Italy Launched (May 06) New (April 06) Launched (October 05) MAY 06 New online Game New Full Color (July 05) New (Feb 05) + new additional cities 1 IN ITALY JULY 05 APR 06 OCT 05 FEB 05 17

18 RCS Recent Innovations Newspapers Spain Relaunch Siete Leguas (April 06) Startup of RCS in Portuguese market through A Esfera dos Livros (March 06) Travel Magazine Startup of Full Color project (July 05) MAY 06 Launch of Yo Dona (May 05) MARCH 06 JULY 05 MAY 05 18

19 RCS Recent Innovations Magazines Launch of A, former Anna (May 06) Other Launches/Relaunches: Style, OK Salute, Dove Case, Novella, Visto,, Newton Restyles: Io Donna, Dove, Gulliver, Oggi WOMEN HEALTH MEN SCIENCE REAL ESTATE LIFE-STYLE GOSSIP PEOPLE FAMILY WOMEN 19

20 RCS Recent Innovations Broadcast NEW RADIO STATION New Playlibro on mobile phone New Playpeople: love meeting through radio 1 RADIO IN ITALY WITH VOIP DIGITAL RADIO 1 RADIO IN ITALY TO LAUNCH AUDIBOOK DATING MOBILE RADIO 20

21 RCS Recent Innovations M&A Increase stake in from 50% to 100% (February 06) Disposal of Capital (October 05) Acquisition of (September 05) Acquisition of (September 05) FEB 06 SEPT 05 OCT 05 SEPT 05 21

22 Dada Strategic Investment CONSUMER Community on Entertainment on Dating on Listed Company, RCS stake 43,0% (April 06) BUSINESS DESCRIPTION BUSINESS Interactive Marketing Business & Technology DADA International Presence ITALY UNITED KINGDOM GERMANY UNITED STATES CHINA FRANCE SELF PROVISIONING Starting from 2005 Starting from

23 RCS Mobile RCS Mobile is a new subscription offer in Mobile Information & Entertainment First example of cooperation between DADA and RCS RCS Mobile is a weekly subscription based service (3 per week), taylored by the costumer, that provides a range of downloadable contents from RCS titles As a subscriber to RCS Mobile you can choose from a selection of Information (Corriere, Gazzetta, Max, Astra, Novella 2000) and entertainment services (wall paper, ringtones, games) 23

24 Agenda Who we are RCS Recent Innovations st Quarter Financial Results Details by Business Unit 24

25 2006 1st Quarter Results - Summary Million Euro Q106 Q105 (1) Δ% FY 2005 Total Revenues 532,3(2) 100% 498,5 100% 6,8% 2.191,0 100% (3) (4) EBITDA 31,4 5,9% 25,0 5,0% 25,6% 262,9 12,0% EBIT 18,7 3,5% 17,6 3,5% 6,2% 217,2 9,9% Net Profit 33,7 6,3% 82,9 16,6% -59,3% 219,3 10,0% NFP (28,4) (42,9) (47,7) (1) Restated IAS/IFRS (2) Includes 22,7 /mln Dada revenues (3) Includes 3,4 /mln Dada Ebitda (4) Includes 20,5 /mln contribution for paper purchase cost (of which 13,9 /mln referring to 2004) 25

26 Profit & Loss Million Euro (1) Q106 Q105 Δ % FY 2005 Circulation 320,7 60,2% 329,7 66,1% (2,7%) 1.373,5 62,7% Advertising 171,0 32,1% 152,0 30,5% 12,5% 722,4 33,0% Other (2) 40,6 7,6% 16,8 3,4% > 100% 95,2 4,3% TOTAL REVENUES 532,3 100,0% 498,5 100,0% 6,8% 2.191,1 100,0% Cost of goods sold (392,1) (73,7%) (374,3) (75,1%) 4,8% (1.510,6) (68,9%) Labour costs (105,0) (19,7%) (95,9) (19,2%) 9,5% (399,4) (18,2%) Writedowns (2,7) (0,5%) (2,8) (0,6%) (3,6%) (14,0) (0,6%) Provisions (1,1) (0,2%) (0,5) (0,1%) > 100% (4,2) (0,2%) EBITDA 31,4 5,9% 25,0 5,0% 25,6% 262,9 12,0% D&A (12,7) (2,4%) (7,4) (1,5%) 71,6% (45,7) (2,1%) EBIT 18,7 3,5% 17,6 3,5% 6,3% 217,2 9,9% Net financial incomes (charges) 3,6 0,7% 0,2 0,0% > 100% 2,2 0,1% Income (charges) from adj. to value of financial assets 0,0 0,0% 50,8 10,2% ns 72,4 3,3% Income (charges) from equity investments 1,9 0,4% (0,6) (0,1%) ns 0,6 0,0% PRE-TAX PROFIT 24,2 4,5% 68,0 13,6% (64,4%) 292,4 13,3% Taxes 12,4 2,3% 14,3 2,9% (13,3%) (62,4) (2,8%) Minorities (2,8) (0,5%) 0,6 0,1% ns (10,7) (0,5%) NET PROFIT 33,7 6,3% 82,9 16,6% (59,3%) 219,3 10,0% (1) Restated IAS/IFRS (2) Includes 22,7 /mln Dada Revenues 26

27 Revenues & EBITDA Breakdown by BU Million Euro Q106 Q105 (*) FY 2005 Revenues EBITDA ROS% Revenues EBITDA ROS% Revenues EBITDA ROS% Newspapers Italy 178,4 30,0 16,8% 178,2 28,9 16,2% 725,4 134,9 18,6% Newspapers Spain 79,9 9,0 11,3% 75,1 9,3 12,4% 311,5 55,0 17,7% Magazines 73,1 (2,9) -4,0% 56,7 (0,4) -0,7% 293,5 25,8 8,8% Broadcast 6,4 (2,1) ns 4,9 (0,5) ns 24,7 (4,9) ns Advertising 131,4 2,4 1,8% 119,0 0,3 0,3% 565,5 5,6 1,0% Books 146,9 (5,1) -3,5% 155,6 (9,4) -6,0% 708,6 63,0 8,9% Dada 22,7 3,4 15,0% 17,1 (**) 1,6 9,4% Corporate & eliminations (106,4) (3,3) ns (91,0) (3,2) ns (455,3) (18,1) ns TOTAL RCS 532,3 31,4 5,9% 498,5 25,0 5,0% 2.191,0 262,9 12,0% * Restated IAS/IFRS ** Dada has been consolidated line by line as from November

28 Main Joint-Ventures Million Euro, legal entities data, 100% JV (RCS 45% - DeA 45% - Hachette 10%) JV (RCS 34,5% - JCDecaux 32,3% - Publitransport 33,2%) Q106 Q105 * Q106 Q105 * Revenues 101,3 75,1 44,4 40,2 EBITDA 4,1 4,6 2,0 1,1 * Restated IAS/IFRS 28

29 Cash Flow Statement Million Euro Net Financial Position 1/01/2005 (47,7) EBIT 18,7 D&A 12,7 Taxes (12,5) Δ NWC 33,5 Δ Funds (8,2) Free Cash Flow 44,2 CAPEX (20,4) Cash Flow (including CAPEX) 23,8 Dividends Cashed-in dividends Equity investments (5,6) Equity disposals Other 1,1 Cash Flow 19,3 Net Financial Position 31/12/2005 (28,4) 29

30 Balance Sheet Million Euro Net fixed assets 1.310,1 108% 1.247,2 106% Tangible & Intangible fixed assets 816,5 68% 808,4 69% Financial fixed assets 493,6 41% 438,8 37% Net working capital 163,4 14% 191,9 16% Reserve for risks and charges (153,1) (13%) (155,4) (13%) Employee termination indemnity (110,2) (9%) (109,0) (9%) CAPITAL EMPLOYED 1.210,2 100% 1.174,6 100% Net financial debt 28,4 2% 47,7 4% Equity 1.181,8 98% 1.126,9 96% EQUITY & NFD 1.210,2 100% 1.174,6 100% 30

31 Agenda Who we are RCS Recent Innovations st Quarter Financial Results Details by Business Unit 31

32 Newspapers Italy P&L Circ avg. daily copies Read per day Circ avg. daily copies Circ avg. daily copies Read per day Read per day ADS, Audipress and Eurisko Million Euro Q106 Q105 (*) YoY FY 2005 Circulation 54,5 31% 52,3 29% 4,2% 226,2 31% Advertising 70,1 39% 64,1 36% 9,4% 295,6 41% Add-ons 51,2 29% 60,3 34% (15,1%) 191,4 26% Other 2,6 1% 1,5 1% 73,3% 12,2 2% TOTAL REVENUES 178,4 100% 178,2 100% 0,1% 725,4 100% EBITDA 30,0 16,8% 28,9 16,2% 3,8% 134,9 (**) 18,6% * Restated IAS/IFRS ** Includes 13,4 /mln contribution for paper purchase cost 32

33 Unedisa - P&L Circ avg. daily copies Read per day OJD, Infoadex Million Euro Q106 Q105 (*) YoY FY 2005 Circulation 27,1 34% 24,9 33% 8,8% 99,3 32% Advertising 31,6 40% 26,2 35% 20,6% 123,4 40% Add-ons 16,5 21% 18,8 25% (12,2%) 70,1 23% Other 4,8 6% 5,3 7% (9,4%) 18,7 6% TOTAL REVENUES 79,9 100% 75,1 100% 6,4% 311,5 100% EBITDA 9,0 11,3% 9,3 12,4% (3,2%) 55,0 17,7% * Restated IAS/IFRS 33

34 Magazines - P&L (100%) (100%) (100%) (100%) 9 weekly magazines 20 monthly magazines Million Euro Q106 Q105 YoY FY 2005 Circulation 36,1 49% 27,0 48% 33,7% 126,6 43% Advertising 30,2 41% 26,1 46% 15,7% 145,5 50% Other 6,8 9% 3,6 6% 88,9% 21,4 7% TOTAL REVENUES 73,1 100% 56,7 100% 28,9% 293,5 100% EBITDA (2,9) (4,0%) (0,4) (0,7%) ns 25,8 8,8% (*) (**) * Restated IAS/IFRS ** Includes 5,9 /mln contribution for paper purchase cost 34

35 Advertising - P&L (51%) Million Euro Q106 Q105 (*) YoY FY 2005 Adv. House 120,6 92% 108,0 91% 11,7% 523,7 93% International Adv. 10,8 8% 11,0 9% (1,5%) 41,8 7% TOTAL REVENUES 131,4 100% 119,0 100% 10,5% 565,5 100% EBITDA 2,4 1,8% 0,3 0,3% ns 5,6 1,0% * Restated IAS/IFRS 35

36 Books - P&L Million Euro Q106 Q105 YoY FY 2005 Fiction & non-fic. Italy 29,1 20% 32,7 21% (11,0%) 135,8 19% Education 4,6 3% 4,4 3% 4,5% 94,6 13% Flammarion 50,0 34% 50,4 32% (0,8%) 227,4 32% Partworks 58,8 40% 65,1 42% (9,7%) 230,9 33% Rizzoli Int. Publication 4,3 3% 2,3 1% 87,0% 18,3 3% Other 0,1 0% 0,7 0% ns 1,6 0% TOTAL REVENUES 146,9 100% 155,6 100% (5,6%) 708,6 100% EBITDA (5,1) (3,5%) (9,4) (6,0%) ns 63,0(**) 8,9% (*) * Restated IAS/IFRS ** Includes 1,2 /mln contribution for paper purchase cost 36

37 Broadcast - P&L Play Radio RIN Digital Radio Syndication of Local Radio Press Agency Million Euro Q106 Q105 YoY FY 2005 Advertising 4,9 77% 4,0 82% 20,8% 20,1 81% Broadcasting 1 1,5 23% 0,8 17% 76,6% 4,5 18% Others 0,1 2% (43,8%) 0,1 ns TOTAL REVENUES 6,4 100% 4,9 100% 30,1% 24,7 100% EBITDA (2,1) (0,5) ns (4,9) (*) * Restated IAS/IFRS 1 Includes AGR press services 37

38 Deutsche Bank Italian Champions Conference Milan, May 17 th 2006