Investor presentation. June 2008

Transcription

1 Investor presentation June 28

2 Financial performance of the Group Revenues Operating cost Revenue growth driven by advertising sales % 16% 4.5% 52.5% 15% Advertising Copy sales Collections Other % 6% 17% 6% 13% Staff* Materials Marketing Other Cost increase mainly reflects growth of operations 1Q7 1Q8 1Q7 1Q8 Operating performance Net profit % 14% 17% 2% 15% % 3 1% 1 Strong operating margins 2 1 5% 5 1Q7 1Q8 % 1Q7 1Q8 Operating EBITDA Operating EBITDA margin Source: consolidated financial statements according to IFRS, 1Q8 * excluding non-cash cost of share-based payments 2

3 Segment performance: Gazeta Copy sales Gazeta s revenues Gazeta s copy sales decline reflects high base in 27 thou. copies 6.5% 9% 14 11% 3 6% 24% 1% 7 2.5% Fakt Gazeta Super Express Dziennik Rzeczpospolita 1Q7 1Q8 Advertising Copy sales Fast growth of ad revenues and increased market share Readership reach No of readers Gazeta Fakt 5.6 mln 5.2 mln 18.5% 17.2% Super Express 2.4 mln 8.% Metro 2.3 mln 7.7% Dziennik 1.9 mln 6.3% Rzeczpospolita 1.5 mln 5.1% % 1% % reach 2% Ad market share* Other 9.5% Polskapresse Fakt 6% 2pp 14% 1pp pp Mecom local Dziennik 6% 1pp 7% Super Express 3pp 2.5% pp 1Q8 Rzeczpospolita 8% pp Metro 3.5% Gazeta 1pp 43.5% 1pp Source: readership: Polish Readership Survey, execution MillwardBrown SMG/KRC, Jan-Mar 8, N=12 65, CCS indicator (weekly readership); copy sales: ZKDP, Jan-Mar 8; financials: consolidated financial statements according to IFRS, 1Q8; dailies ad market: Agora s estimates adjusted for average discount rate (data in current prices) * versus selected dailyt itles 3

4 Segment performance: Metro Metro s ad revenues Double-digit growth of sales reflecting solid readership results 5% 25% 46% 1% % Dailies Metro Readership reach in Warsaw Metro s ad market share EBITDA break-even Gazeta Metro No of readers 593 thou 535 thou 41.6% 46.1% % share 1% 8% 3.5% in total 1pp 7% Dziennik 31 thou 23.4% Fakt 263 thou 2.4% 5% 4% Super Express 218 thou 16.9% Echo Miasta 175 thou 13.6% 3% 2% Rzeczpospolita 142 thou 11.% % 25% % reach 5% % National Local Warsaw Source: readership: Polish Readership Survey, execution MillwardBrown SMG/KRC, Jan-Mar, N=515, CCS indicator (weekly readership), Warsaw; financials: consolidated financial statements according to IFRS, 1Q8; dailies ad market: Agora s estimates adjusted for average discount rate (data in current prices) 4

5 Segment performance: Internet Agora s online revenues Advertising revenue growth nearly triples the industry rate 12% 6% 39% 115% 9 new services 1 revamped offer 47 Internet brands in total % Internet ad market Agora* 47 Internet brands of 43% reach % reach Reach of Internet portals 8% 6% 4% 7.% 67.2% 62.% 56.4% 49.9% 51.2% 45.9% 48.9% 38.8% 43.2% Blox.ua 2% % Onet.pl WP Interia.pl o2.pl Agora February 27 February 28 Source: reach: Megapanel PBI/Gemius; financials: consolidated financial statements according to IFRS, 1Q8 *exl. vertical ad sales 5

6 Segment performance: collections Financial performance Revenue decline due to high base and competitive market % 6 series, 8 one offs 82% 1Q7 1Q8 Revenues EBITDA 1.5 mln volumes sold in 1Q8 mln of volumes sold** 4 Number of volumes sold 2 3 mln 1.5 mln 1Q7 1Q8 Source: consolidated financial statements according to IFRS, 1Q8 ** books, CDs, and DVDs 6

7 Segment performance: outdoor Financial performance Double-digit growth of ad revenues 5 16% % Continued expansion in 6x3 panels 1Q7 Revenues Operating EBITDA 1Q8 Ad market share Capex CityInfoTV screens to be installed in Warsaw metro cars Other 76% 1Q8 AMS 24% % 1Q7 1Q8 Source: consolidated financial statements according to IFRS, 1Q8; ad market: IGRZ, 1Q8 7

8 Segment performance: magazines Financial performance Strong revenue growth and solid operating margins % 16% New launches 1Q7 1Q8 Revenues Operating EBITDA Average copy sales (monthlies) Monthly ad market thou copies % Media Point Gruner+Jahr Group 12% Axel Springer 4% 3% Edipresse 8% 1Q8 Ag o r a 12% Marquard 12% 1Q7 1Q8 Bauer 15% Other 17% Murator 8% Burda Media Polska 9% Source: consolidated financial statements according to IFRS, 1Q8; copy sales: Agora; ad market: monitoring of Expert Monitor based on rate card data, 1Q8 8

9 Segment performance: radio Financial performance Healthy revenue growth and positive EBITDA % Q7 1Q8 Audience success and fast revenue growth of TOK FM (71%) % share Audience share local stations 1% Revenues Operating EBITDA Local radio stations 8.6% 8.% % share Audience share TOK FM 1% yoy pp change 1.3pp 5% 5% 1.1pp 7.4% 4.6% % 1Q7 1Q8 % Cities of broadcasting Warsaw Source: financial: consolidated financial statements according to IFRS, 1Q8; audience share: Radio Track, MillwardBrown SMG/KRC, cities of broadcasting,15+, Jan-Mar (27: N=11 43, 28: N=11 422), TOK FM, Jan-Mar, Warsaw (27: N=1 51, 28: N=1 59) cities of broadcasting (27: N=7 84, 28: N=7 844) 9

10 Ad market performance Ad spend growth in 1Q8 28 ad spend growth estimates Fast growth of total ad spend continued Internet 39% Internet 35% - 4% TV 11% - 12% Outdoor 26% Outdoor 1% Newspapers grew faster than expected Television 16% Total Radio 7% - 8% Dailies 4% Magazines 5% Radio 15% 16% Total 1% - 11% Yet, total 28 market estimates remain unchanged so far Magazines Dailies 11% 1% Ad market structure Outdoor 9% Internet 5% 1Q8 Dailies 15% Magazines 14% % 25% 5% Television 48% Radio 8% Source: 1Q8 spending: estimates made by: Agora (print, radio based on Expert Monitor and monitoring of Agora), Starlink (TV and Internet), IGRZ (outdoor); 28 estimates: Agora. All estimates are adjusted for average discount rate. 1

11 Growing number of ways to reach media content Internet penetration (households) Internet viewership 5% 25% 26% 3% 36% 41% 3% 5% 25% billion page views 4 2 Page views: CAGR 55% 6 3 billion hours 16% 22% % 8% % Oct 5 Nov 5 Dec 5 Jan 6 Feb 6 Mar. 6 Apr 6 May 6 Jun 6 Jul 6 Aug 6 Sep 6 Oct 6 Nov 6 Dec 6 Jan 7 Feb 7 Mar. 7 Apr 7 May 7 Jun 7 Jul 7 Aug 7 Sep 7 Oct 7 Nov 7 Internet penetration Broadband Page views Time spent Source: GUS Source: Megapanel PBI/Gemius Digital TV households in CEE No of households mln % * 3% 47% 32% Poland Romania Czech Republic Hungary E Source: Informa Telecoms & Media 28 / Media&Entertainment *as of Dec 27, Agora s estimates DTT Digital Terrestrial Television 11

12 Expanding media offer due to narrower profiling Thematic TV channels continue to grow reach and revenues Profiled magazines on the increase 3 25% 2% share (SHR) 16 86% 275% 27 vs 2 % change Total national magazine ad spend +115% 15 NA NA NA NA Revenues Audience share Source: thematic TV channels: Agora (based on AGB Polska); ad revenues of thematic channels : Starlink estimates 15% 1% 5% % 8 No of titles 14 title 16 titles 1 titles 3 titles Home & interior Lifestyle Parenting Shopping design 2 27 Source: Expert Monitor, rate card data, 2 and 27 4 titles 298% 1 titles 5 titles Broadly-targeted online services decline reach Profiled online offers rise in popularity % reach 8% 74.3% 7% 65.6% 6% 53.9% 5% 46.4% 4% 37.3% 3% Oct 6 Nov 6 Dec 6 Jan 7 Feb 7 7-mar Apr 7 May 7 Jun 7 Jul 7 Aug 7 Sep 7 Oct 7 Nov 7 Dec7 Onet.pl Wirtualna Polska Interia.pl o2.pl Source: Megapanel PBI/Gemius Gazeta.pl Jan8 Feb8 8-mar 67.3% 56.9% 51.3% 48.6% 44.6% real users % change (Nov 7 vs Nov 5) 2% 1% % 166% 132% 118% 15% jobs housing communities 98% 81% Total Internet growth 44% automotive lifestyle business education Source: Internet: Megapanel PBI/Gemius, Nov 27 vs Nov 25 62% 58% 57% 56% 33% travel information entertainment sports 12

13 Executing on growth objectives Build substantial position in the fastest growing advertising segments: - Internet (audiovisual and mobile content, classified offers) - thematic offers - outdoor Expand existing franchises off and online: - magazines - newspapers (incl. free) -radio Agora Leverage existing competencies: - brands - ad and marketing skills - distribution across multiple platforms - national and local presence Secure new content distribution opportunities: digitalization INTERNAL FOCUS Add new competencies; implement pro-development management system 13

14 Summary The company is engaged in and committed to a proactive and effective execution of the growth plan Our aim: increase revenue base change the mix: in 3 years majority revenues from sources other than newspaper-based The company will be prepared for larger and diversified scale of operations: cultivate current capabilities build new competence centers implement pro-development revisions of the management system (incl. incentive tools and compensation review) 14

15 Agora s acquisition of Trader.com (Polska) Sp. z o.o. Appendix

16 Key transaction details Agora acquires 1% of Trader.com (Polska) operations Company Seller Trader.com (Polska) Sp. z o.o. Pronto Invest B.V. (group company of Trader Media East Limited which belongs to the leading Turkish media group Hurriyet ) Share 1% Closing date upon fulfillment of the conditions stipulated in the share purchase agreement Price Signing date US$ mln May 14, 28 16

17 Key details about Trader.com (Polska) Sp. z o.o. Trader.com (Polska) is one of the leading players in the Polish online home and automotive classifieds Portfolio details sector 6 ad publications automotive real-estate brand "AutoBiznes Ogłoszenia" "AutoBit Biznes" "Biznes Truck" "Domiporta Oferty Nieruchomości" "Nieruchomości Warszawa i okolice" "Nieruchomości Wrocław i okolice In 27 Trader.com (Polska) generated PLN 18.5 mln in revenues 4 verticals (classifieds) real-estate classifieds automotive classifieds machinery, trucks and utility vehicles Domiporta.pl Autotrader.pl Tabor24.pl Real users 395 thou. 466 thou. 8 thou. other classifieds Kupsprzedaj.pl 178 thou. 1 vertical (community) automotive Autofoto.pl 158 thou. Source: real users: Megapanel PBI/Gemius, January 28 17

18 Transaction objectives Acquisition of Trader.com (Polska) is in line with Agora s strategic objectives to develop its thematic media offer in the fastest growing areas of the advertising market Maintain strong long-term leadership position in real-estate/home/construction classifieds; Acquire second position in automotive category measured by # of real users; Capture classified revenue outflow from print to Internet in the most attractive market segments; Agora strives to become one of the leading players in each key classified category Build capacity to create new classified services in Poland and abroad based on the acquired technology, expertise and experience of the team; Leverage cross-promotion, content sharing and cross-selling advantage to build new offers and optimize operating processes. 18

19 Real-estate and automotive advertising are among the largest and the fastest growing categories Estimated threeyear CAGR for online real-estate and automotive advertising will reach ca. 33% and ca. 17%, respectively Real-estate ad market in Automotive ad market in % 25 2% 33% 12% 1 5% 5 2 1% % 51% 5 65% 5% 2% 2% Total 27 Print Internet Total 27 Print Internet Real-estate ad market structure in 27 Automotive ad market structure in Total 27 Print Internet Agora Polskapresse Trader.com Polska Total 27 Print Internet Agora Polskapresse Trader.com (Polska) Source: Agora s estimates, display ads and classifieds 19

20 Agora and Trader.com (Polska) market position Agora s leadership position in print advertising combined with Trader s online advantage creates an opportunity to become a strong long-run player in key classified categories Agora and Trader.com (Polska) share in online real-estate ads (display and classifieds) % 14% % share % share Trader's share Agora's share Total real-estate classifieds Real users of top 1 home-related services Agora and Trader.com (Polska) share in online automotive ads (display and classifieds) % Trader's share 7% Agora's share Total automotiv e classif ieds Real users of top 1 automotive services mln real users 1,2,8,4 Gazeta.pl* Trader Group mln real users Trader Group Gazeta.pl* Real users Real users Gazeta.pl+Trader.com Polska Gazeta.pl* Murator Group Gratka Group - gratka.pl-gratka.pl/dom otodom Trader Group - domiporta.pl oferty.net szybko.pl nieruchomosci-online.pl meble.pl Onet.pl* *home-related services total Gazeta.pl + Trader.com Polska (overlaps excluded) Gazeta.pl (incl. moto.pl)+trader Group INTERIA.PL* Onet.pl* o2.pl* Gazeta.pl* mobile.de *automotive-related services otomoto Gratka Group* Wirtualna Polska* Trader Group* Source: real users: Megapanel PBI/Gemius, January 28; ad market: Agora s estimates, display ads and classifieds 2

21 Agora and Trader.com (Polska) joint potential Trader.com (Polska) Agora Product quality best online technology in home category Brand recognition, predominantly in print; leadership position in home-related category Well-recognized online brands Strong and experienced sales teams; large client base Unique competencies of the team Become a significant player in each key classified category Leading content provider in home-related category online Wide reach of 47-brand Internet offer Cross-promotion, content sharing and cross-selling advantage of the media group 21

22 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. 22