Deutsche Bank Italian Conference. Milan, May

Transcription

1 Deutsche Bank Italian Conference Milan, May

2 Agenda Who we are Market trends 2009: 1st Quarter Results Efficiency Enhancement Program Details by Business Unit 2

3 RCS Positioning ITALY ITALY ITALY BRANDS SYSTEMS ITALY 2 nd Information Web Site in Italy Leader in National and Sport newspapers 2 nd Player in the fiction and non fiction market 13.4% Market share Leader in the education market 12.4% Market share 1 st Sport Information Web Site in Italy 1 st Information Web Site in Europe and 1 Spanish language Web Site worldwide 1 st Sport Informatiion Web Site in Spain 3 National Radios 6.8 mln listeners RCS stake: 34.6% 2 nd Free Press National Title 19% Market share SPAIN 2 nd Player in terms of circulation 18% Market share 2 nd player in the partworks market FRANCE MULTIMEDIA SYSTEMS TV PRESS WEB Thematic TV Channels SPAIN Second national newspapers SPAIN CLASSIFIED Leader in Sport and Financial newspapers 18% Market share 4.8% Market share Note: market shares updated with latest available market data; Newspapers and Magazines in terms of circulation UK ON LINE & MOBILE ENT The leading international provider of web and mobile community and entertainment services in 23 countries Online Gaming 3 National Sport Radio DTT TV

4 Agenda Who we are Market trends 2009: 1st Quarter Results Efficiency Enhancement Program Details by Business Unit 4

5 Advertising Italy: Trend Advertising Gross Revenues, Million Euro YoY growth ,561 2, % Cinema Outdoor Internet Radio % +17.3% Internet 428 Magazines % -34.2% Magazines Newspapers * % -25.7% Newspapers * Other 192 1,353 TV 1,144 Other % * ExcludingFreePress TOTAL MARKET vs RCS Source: Nielsen Media Research 5

6 Advertising Spain: Trend Advertising Gross Revenues, Million Euro , , % YoY growth Cinema Outdoor Internet Radio 15.0 Magazines Sundays +2.2% -19.8% -34.9% +8.0% -24.3% -38.1% Internet Radio Magazines Newspapers % -39.0% Newspapers 826 TV % TOTAL MARKET vs RCS Source: ARCE Media 6

7 Italian Newspapers Circulation: RCS vs. Market Circulation, copies/000 per day, Feb 08 Jan 09 YoY growth National Newspapers (1) % -7.4% Sport Newspapers % % MARKET RCS (1) Includes La Repubblica and Corriere della Sera Source: ADS + Internal Estimates (Feb Jan 2009) 7

8 Spain Newspapers Circulation: RCS vs. Market Circulation, copies/000 per day, YoY growth Generalist Newspapers (1) % % 323 Sport Newspapers % % Financial Newspapers % % 49 MARKET RCS (1) Includes newspapers with circulation > 100,000 copies Sources: OJD, Observatorio de Prensa Diaria 8

9 Books: RCS vs. Market MARKET Fiction and non-fiction Italy - Sales down -1.6% (-2.9% in terms of volume) - Revenues increased by 5.5% - Market Share to 13.4% Flammarion France - Market increased (+4.9% 4.9%), largely thanks to the success of Stephenie Meyer s books - Revenues decreased by 11.3% - Market share at 4.8% Partworks Italy and other countries - Number of launches decreased across Italy and mature markets - New launches grew in Eastern Europe and emerging markets - Revenues, due to a decrease in new launches, declined in Italy and abroad by 41.9% Δ %, vs. 9

10 Agenda Who we are Market trends 2009: 1st Quarter Results Efficiency Enhancement Program Details by Business Unit 10

11 2009 1st Quarter Results - Summary Million Euro FY 2008 Total Revenues (1) 514,9 100% 625,5 100% 2.659,5 100% (1) EBITDA (11,6) (2,3%) 14,2 2,3% 247,3 9,3% EBIT (1) (35,6) (6,9%) (10,1) (1,6%) 130,1 4,9% Net Profit (40,7) (7,9%) (18,6) (3,0%) 38,3 1,4% NFP (1.118,2) (1.130,2) (1.146,8) (1) The 2008 and figures are restated: the UE s printing activities, La Coccinella and Economica SGPS are included as discontinued operations. 11

12 2009 1st Quarter Results - Profit & Loss Million Euro (1) Circulation % % Advertising % % Other % % TOTAL REVENUES % % Operating costs (394.5) (76.6%) (477.6) (76.4%) Labour costs (125.8) (24.4%) (131.5) (21.0%) Writedowns (3.5) (0.7%) (1.1) (0.2%) Provisions (2.7) (0.5%) (1.1) (0.2%) EBITDA (11.6) (2.3%) % D&A (24.0) (4.7%) (24.3) (3.9%) EBIT (35.6) (6.9%) (10.1) (1.6%) Net financial incomes (charges) (10.7) (2.1%) (13.9) (2.2%) Income (charges) from investments (5.3) (1.0%) (7.3) (1.2%) PRE-TAX PROFIT (51.6) (10.0%) (31.3) (5.0%) Taxes % % Net profit from Discontinuing and Discontinued Operations % % Minorities % % NET PROFIT (40.7) (7.9%) (18.6) (3.0%) (1) The costs and revenues of UE s printing activities, La Coccinella and Economica SGPS are included as discontinued operations. 12

13 2009 1st Quarter Results Breakdown Revenues & Ebitda Million Euro (1) Revenues EBITDA ROS% Revenues EBITDA ROS% Newspapers Italy % % Newspapers Spain % % Magazines 53.7 (6.6) (12.3%) 65.5 (5.1) (7.8%) Advertising 92.6 (3.2) (3.5%) % Books (9.1) (7.3%) (16.3) (10.3%) Dada % % Digicast % % Corporate Activities 15.4 (3.4) ns 16.1 (3.9) ns Others and eliminations (94.2) (1.4) ns (127.3) 0.0 ns TOTAL RCS (11.6) (2.3%) % (1) The costs and revenues of UE s printing activities, La Coccinella and Economica SGPS are included as discontinued operations. 13

14 NFP st Quarter Results - Cash Flow Variance Million Euro Others NFP Acquisitions Disposals CAPEX Dividends Operating Cash Flow UE s Printing Activities 39 mln Building Disposal (Madrid) 17 mlm

15 Balance Sheets Million Euro Net fixed assets 2, % 2, % Tangible & Intangible fixed assets 2, % 2, % Financial fixed assets % % Net working capital % % Reserve for risks and charges (211.6) (9.1%) (214.7) (9.1%) Employee termination indemnity (88.2) (3.8%) (88.8) (3.8%) Net invested capital: assets held for sale % % CAPITAL EMPLOYED 2, % 2, % Net financial debt (cash) 1, % 1, % Net debt pertaining to assets held for sale % % Equity 1, % 1, % EQUITY & NFD 2, % 2, % 15

16 Agenda Who we are Market trends 2009: 1st Quarter Results Efficiency Enhancement Program Details by Business Unit 16

17 Efficiency Enhancement Program - Timing Million Euro Total Recovery = 200 mln steady state = aprox. 24 months Savings 2009 additional savings estimate 2009 cumulative savings estimate "steady state" additional savings estimate "steady state" cumulative savings estimate 17

18 Efficiency Enhancement Program Details Total Recovery = 200 mln Euro 0-5% 10-15% CoGS 40-45% G&A 10-15% Production Costs Additional Revenues Others 25-30% 18

19 Agenda Who we are Market trends 2009: 1st Quarter Results Efficiency Enhancement Program Details by Business Unit 19

20 Newspapers Italy P&L Circ. 605,000 avg. daily copies Read. 2,907,000 per day 437 mln page views 13.0 mln unique users Circ. 378,000 avg. daily copies Read. 3,706,000 per day Circ. 850,000 avg. daily copies Read. 1,986,000 per day 290 mln page views 7.8 mln unique users ADS + Internal Estimates, Audipress Million Euro YoY Circulation % % (4.3%) Advertising % % (22.8%) Other % % 16.1% TOTAL REVENUES % % (12.1%) O/W Add-ons % % 1.1% (1) EBITDA % % (75.7%) 20

21 Newspapers Spain - P&L Circ. 323,000 avg. daily copies Read. 1,337,000 per day Circ. 283,000 avg. daily copies Read. 2,749,000 per day Circ. 49,000 avg. daily copies Read. 169,000 per day mln page views 19.2 mln unique users 356 mln page views 14.3 mln unique users OJD, Infoadex Million Euro (1) YoY Circulation % % (2.4%) Advertising % % (33.9%) Other % % (22.7%) TOTAL REVENUES % % (17.7%) O/W Add-ons % % (29.1%) EBITDA % % (89.9%) (1) The costs and revenues of UE s printing activities and Economica SGPS are included as discontinued operations. 21

22 Magazines - P&L (100%) (100%) (100%) (100%) 8 weekly magazines 22 monthly magazines New Media Million Euro YoY Circulation % % (14.4%) Advertising % % (27.9%) Other % % 17.6% TOTAL REVENUES % % (18.0%) EBITDA (6.6) (12.3%) (5.1) (7.8%) (29.4%) (1) 22

23 Books - P&L Million Euro YoY Fiction & non-fic. Italy % % 5.5% Education % % (24.4%) Flammarion % % (11.3%) Partworks % % (41.9%) Rizzoli International % % (20.0%) Other % % 0.0% TOTAL REVENUES % % (20.8%) EBITDA (9.1) (7.3%) (16.3) (10.3%) 44.2% 23

24 Digicast TV Activities - P&L Million Euro YoY Advertising % % 0.0% Other % % 1.6% TOTAL REVENUES % % 1.5% EBITDA % % (18.5%) 24

25 Disclaimer Investor Relations Department Federica De Medici Salvatore Del Vecchio Forward-looking Statements 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. Riccardo Stilli, the Manager responsible for drawing up the company s accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the Testo Unico della Finanza (Legislative Decree n. 58/1998), that the information contained in this presentation corresponds to those one contained in the group s documents and books accounting records. 25