LEGAL DISCLAIMER. Final results may differ substantially from the forecasts included herein.

Transcription

1 May 2005

2 LEGAL DISCLAIMER This document has been prepared by Caltagirone Editore Group for information purposes only and it is not intended as an offer or solicitation of an offer to purchase or sell any financial instrument. Any forward-looking statement on Group performance has not been independently verified and it is based on management best judgment of current macroeconomic conditions but no representation of warranty, express or implied, is made and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Final results may differ substantially from the forecasts included herein. This presentation is being distributed to Professional investors only and may not be reproduced, redistributed or published in whole or in part. For any further information please contact: Investor Relations Department

3 AGENDA SHAREHOLDERS STRUCTURE CORE ACTIVITIES TRADITIONAL NEWSPAPERS FREE PRESS - MAIN FEATURES - NATIONAL LEADERSHIP NEWSPAPER INDUSTRY OVERVIEW NEWSPAPERS: LOCAL STRENGTH PROFITABILIY vs. QUOTED PEERS RECENT HISTORY FINANCIALS OUTLOOK APPENDIX Il Messaggero headquarters in Via del Tritone, Rome 3

4 SHAREHOLDERS STRUCTURE FREE FLOAT 32 OTHER GROUP QUOTED COM PANIES 7 CALTAGIRONE SpA* 29 F.G.C. 32 N N OF OF ORDINARY ORDINARY SHARES: SHARES: MARKET MARKET CAP: CAP: 870m 870m ** ** LISTED LISTED ON ON THE THE BLUE BLUE CHIP CHIP SEGMENT SEGMENT OF OF THE THE ITALIAN ITALIAN STOCK STOCK EXCHANGE EXCHANGE * Direct/indirect holding through Mantegna 87 SpA and Capitolium SpA ** As of May 2005; Please see the Appendix for further information on the Caltagirone Group 4

5 CORE ACTIVITIES TRADITIONAL NEWSPAPERS FREE PRESS 1, daily readers (2) 2004 Sales : 161m Market share: 48.8 in Lazio (3) 713,000 daily readers (2) 2004 Sales : 62m Market share: 54.6 in Campania (3) 228,000 daily readers (2) 2004 Sales : 9,5m Market share: 41 in Marche (3) 1,157,000 daily readers (1) daily copies distributed 2004 Sales : 21m National network In 2005 opening in 6 new cities to strengthen market leadership 190,000 daily readers (2) 2004 Sales : 9,5m Market share: 36.7 in Salento (Apulia) (3) ADVERTISING INTERNET & SERVICES Advertising agency for the Group and third parties [Radio Globo (the first local radio in Rome), Radio Cuore and other radios in Rome, Milan, Naples] One of the main national internet portals (1) Source: Eurisko November Readership figures are based on 810,000 copies distributed and not (2) Readership data: Source Audipress 2004 (3) Market share data calculated on Audipress Population, source: Audipress, 2004; CED estimates 5

6 TRADITIONAL NEWSPAPERS STRONG TRADITIONAL NEWSPAPERS 1 NATIONAL EDITION + 13 LOCAL EDITIONS 1 NATIONAL EDITION + 7 LOCAL EDITIONS RECENTLY ACQUIRED / CONSOLIDATED NEWSPAPERS LEADER IN MARCHE : 41 MARKET SHARE* LEADER IN SALENTO **: 36.7 MARKET SHARE* * Based on Audipress Population, source: Audipress 2004, CED estimates; ** Taranto, Brindisi and Lecce in Apulia; 6

7 TRADITIONAL NEWSPAPERS NATIONAL NEWSPAPERS WITH HIGH BRAND VISIBILITY National newspaper with high brand visibility 13 local editions Avg. 50 pages up to maximum 64 pages, of which 40 in full color (1) Average daily circulation : 240,774 copies (2) National newspaper with high brand visibility 7 local editions Avg. 50 pages up to maximum 64 pages, of which 40 in full color (1) Average daily circulation : 87,757 copies (2) 105 millions investment in new printing facilities for both Il Messaggero and Il Mattino State of the art printing facility will make easier to switch from one edition to another without stopping the rotary press Increase in number of pages, output quality and yield Aggressive price policy in order to increase market share in the Macroregion Focus on cost control Financial incentives for investments (L. 488, granted up to 30 of capex at Il Mattino) (1) Assuming no change of cliché (2) Source: ADS 2004 (Daily moving average) 7

8 FREE PRESS: MAIN FEATURES 1st free newspaper in Italy with daily readership of * Reached copies in 2005; distributed in 15 cities Torino NEW CITIES FROM 2005 Genova, Como, Varese, Bergamo, Brescia, Bari Bologna Venezia Padova Milano Verona MAIN FEATURES Launched in March 2001, reached about 21m advertising revenue and break-even by the end of 2004 Average 24 pages in tabloid format in full color copies distributed Distributed from Monday to Friday in: ~ railway stations (exclusive long-term agreement with Grandi Stazioni) ~ underground stations, coffee bars, hospitals, universities Firenze Roma Napoli STRATEGY Nationwide network as opposed to localised model in order to reach wider audience, strong brand equity and ultimately higher advertising revenue 6 new cities in 2005 to strengthen national leadership Market leadership provides more visibility Target focus on the mass affluent groups, youngsters and upper graduates * Source: Eurisko November Readership figures are based on 810,000 copies distributed and not

9 FREE PRESS: NATIONAL LEADERSHIP 1st free newspaper in Italy with daily readership of * Reached copies in 2005; distributed in 15 cities Lombardia 24 increase in Avg. Daily readers Piemonte 46 increase in Avg. Daily readers NEW CITIES FROM 2005: Liguria Genova Toscana Flat in Avg. Daily readers Lazio 8 increase in Avg. Daily readers NEW CITIES FROM 2005: Lombardia Bergamo, Brescia, Como, Varese Torino Campania Milano Verona Bologna Venezia Padova Firenze 16 increase in Avg. Daily readers Roma 38 increase in Avg. Daily readers Napoli Veneto NEW CITIES FROM 2005: Puglia Bari Emilia Romagna Flat in Avg. Daily readers National network: 1. Roma 2. Napoli 3. Bari 4. Firenze 5. Bologna 6. Padova 7. Verona 8. Venezia 9. Milano 10. Bergamo 11. Brescia 12. Como 13. Varese 14. Torino 15. Genova * Source: Eurisko November Readership figures are based on 810,000 copies distributed and not

10 FREE PRESS: NATIONAL LEADERSHIP Leggo is the N.1 free newspaper in Italy: avg daily readers* in 2004 (+ 18) Reached copies in 2005; distributed in 15 cities National Avg. Daily readers * Metro City Leggo * Source: Eurisko November Readership figures are based on 810,000 copies distributed and not

11 NEWSPAPER INDUSTRY OVERVIEW IL MESSAGGERO AND IL MATTINO ARE AMONGST THE TOP 10 NATIONAL NEWSPAPERS* LA REPUBBLICA IL CORRIERE DELLA SERA LA STAMPA IL RESTO DEL CARLINO IL MESSAGGERO LA NAZIONE IL GAZZETTINO IL MATTINO IL GIORNALE IL TIRRENO LA GAZZETTA DEL MEZZOGIORNO IL SECOLO XIX GIORNALE DI SICILIA LA GAZZETTA DEL SUD LA SICILIA L'UNITA' IL GIORNALE DI BRESCIA IL GIORNO L'ECO DI BERGAMO IL CORRIERE ADRIATICO IL NUOVO QUOTIDIANO DI PUGLIA READERSHIP IN ITALY (000 readers per day)* * Excluding financial and sports daily newspapers - Source: Audipress

12 NEWSPAPERS: LOCAL STRENGTH EACH NEWSPAPER COMMANDS STRONG LOCAL MARKET SHARE * 48,8 MARKET SHARE IN LAZIO* 41 MARKET SHARE IN MARCHE* Il Messaggero 48,8 Il Corriere Adriatico 41,0 La Repubblica 22,6 Il Resto del Carlino 36,2 Il Corriere della Sera 11,2 0,0 10,0 20,0 30,0 40,0 50,0 60,0 54,6 MARKET SHARE IN CAMPANIA* Il Mattino La Repubblica Il Corriere della Sera 11,5 24,8 54,6 Il Messaggero 19,1 0,0 10,0 20,0 30,0 40,0 50,0 36,7 MARKET SHARE IN SALENTO* Il Messaggero + Il Nuovo Quotidiano di Puglia Il Nuovo Quotidiano di Puglia 36,7 ** 51,4 0,0 10,0 20,0 30,0 40,0 50,0 60,0 0,0 10,0 20,0 30,0 40,0 50,0 60,0 *Market share calculated on Audipress population ; Source: Audipress 2004, CED estimates 12 ** Unlike the other Group newspapers, Il Nuovo Quotidiano di Puglia is not a regional newspaper because it is sold only in 3 cities: Lecce,Brindisi and Taranto

13 NEWSPAPERS: LOCAL STRENGTH BUT COMBINED MARKET SHARE IN THE MACROREGION* IS UNPARALLELED: 46,9 ** Il Messaggero + Il Mattino + Il Corriere Adriatico 46,9 La Repubblica 19,5 Corriere della Sera 10,8 Il Centro Il Corriere dell'umbria 6,0 5,8 60,1 COMBINED MARKET SHARE IN MARCHE Il Tempo Il Resto del Carlino Il Giornale 5,1 4,6 3,2 *** 51,4 COMBINED MARKET SHARE IN SALENTO L'Unità La Nazione 2,0 1,6 Il Messaggero + Il Nuovo Quotidiano di Puglia 51,4 La Stampa 1,7 Il Nuovo Quotidiano di Puglia 36,7 0,0 10,0 20,0 30,0 40,0 50,0 0,0 10,0 20,0 30,0 40,0 50,0 60,0 * The macroregion consists of: Lazio, Campania, Marche, Abruzzo, Umbria and Molise regions **Il Messaggero, Il Mattino and Il Corriere Adriatico. Source: Audipress 2004, CED estimates *** Il Nuovo Quotidiano di Puglia is shown separately because it is sold only in Lecce, Brindisi,Taranto (Salento province). 13

14 PROFITABILITY vs QUOTED PEERS CALTAGIRONE EDITORE RANKS AS THE MOST PROFITABLE MEDIA GROUP ,0 22,1 21,4 23,8 BUSINESS MIX 2004 EBITDA MARGIN 5,2 8,2 NEWSPAPERS: 48 BOOKS: 33 MAGAZINES: 13 ADVERTISING: 5 OTHERS 1 9,8 9,5 11,7 14,2 14,3 13,8 14,3 RCS POLIGRAFICI EDITORIALE MONDADORI GRUPPO EDITORIALE L'ESPRESSO CALTAGIRONE EDITORE DAILY NEWSPAPERS: 96 OTHERS: 4 MAGAZINES: 45 BOOKS: 21 PRINTING: 24 MARKETING: 9 OTHERS: 1 18,8 NEWSPAPERS: 73 MAGAZINES: 11 RADIO-TV: 7 INTERNET: 2 OTHERS:8 17,3 DAILY NEWSPAPERS: 88 FREE PRESS: 8 INTERNET & SERVICES: 1 OTHERS 3 DESPITE A LESS PROFITABLE BUSINESS MIX 14

15 RECENT HISTORY PROFITABILITY OVER TIME Strong cyclical upswing Reorganization of activities and completion of turnaround process Economic slowdown Advertising decline Further improvement in efficiency through operating costs reduction EVENTS PERFORMANCE EBITDA margin EBIT margin Caltagirone Group acquires Il Messaggero and Il Mattino Caltagirone Editore IPO 6.9 Launch of Leggo New printing plant up and running (Il Messaggero) Group acquires Il Corriere Adriatico and Il Nuovo Quotidiano di Puglia new cities for Leggo 15

16 FINANCIALS: REVENUE BREAKDOWN ADVERTISING IS THE MAIN DRIVER OF GROUP REVENUES Circulation Add on promotions Advertising Internet&Services Others millions ,4 7, ,5 3,

17 FINANCIALS: FULL YEAR RESULTS Profit and Loss Account * (Euro 000) COMMENTS Circulation ,6 Promotion contributed 15m to circulation revenue Advertising ,9 From 1./7/04 Il Corriere Adriatico Other revenues ,4 contributed over 1.9m to Group advertising Total Revenues ,2 revenue Raw materials (25.484) (28.037) -9,1 Services Rents, lease and similar costs (91.072) (7.050) (80.877) (5.083) 12,6 38,7 The increase is linked to promotions which soared by about 40 from 2003 Personnel (79.545) (77.827) 2,2 Other costs (2.012) (1.886) 6,7 Total Costs ( ) ( ) 5,9 Ebitda D&A Other (costs) revenues (25.852) (3.778) (21.742) (4.500) 16,2 18,9-16,0 Full year effect of new printing plants amortisation Ebit ,2 Financial result ,2 Net exceptional (loss) income 188 (8.500) 102,2 In 2004 there was no negative impact from Profit before taxes ,5 extraordinary taxes Taxes (2.679) ,0 Profit before minorities ,3 Minorities (3.957) (2.061) 92,0 Net profit ,8 * 2004 results include first time contribution of Il Corriere Adriatico, acquired on

18 FINANCIALS: FIRST QUARTER 2005 HIGHLIGHTS Euro Q Q 2004 Circulation Advertising Other revenues Total Revenues * ,1 6,2 23,2 2,2 Lower promotions revenue in Q1-05, matched by lower service costs. New initiatives under way Raw materials Services Rents, lease and similar costs (6.584) (20.299) (1.975) (6.321) (22.174) (1.712) 4,2-8,5 15,4 First time consolidation of Il Corriere Adriatico contributed 0.9m to advertising revenue Personnel (21.765) (19.270) 12,9 Other costs Total Costs Ebitda D&A (646) (51.269) (6.899) (384) (49.861) (5.924) 68,2 2,8 0,4 16,5 Personnel cost increase is mainly due to the consolidation of Il Corriere Adriatico and to Il Nuovo Quotidiano di Puglia Other (costs) revenues (731) (582) 25,6 Ebit ,2 2.5m goodwill amortisation charge will Pretax disappear when IAS/IFRS rules are applied Net Income ,4 Q1-05 results include first time contribution of Il Corriere Adriatico, from the 1st of July

19 FINANCIALS NET FINANCIAL POSITION 2003 NFP 146m 66.3m 69m NFP 441.9m Acquisition of minorities and Il Corriere Adriatico Cash flow generation and non core asset disposal Financial investments 293.2m ( 10m) 19

20 STRATEGY: GROWTH CIRCULATION CIRCULATION Circulation flat; Add on promotions to provide growth INVESTMENT INVESTMENT IN IN CORE CORE BUSINESS BUSINESS We pursue organic as well as external growth VALUE CREATION ADVERTISING ADVERTISING Local advertising more resilient in downturns AND National advertising to provide growth COST COST CONTROL CONTROL Constant focus on costs 20

21 APPENDIX 21

22 THE CALTAGIRONE GROUP Il Gruppo Caltagirone family-controlled industrial concern with aggregated sales over 1.3 bn (2004) (a) Group structure is based on three main activities: Construction, Cement and Media The Group holds financial investments in several quoted companies Finanziaria Italia S.p.A HOLDING CALTAGIRONE S.p.A. Mkt Cap.: 690 m CONSTRUCTION CEMENT MEDIA (d) Mkt cap: 375 m (combined) Mkt cap: 615 m Mkt cap: 870 m VIANINI LAVORI S.p.A (General Contractor) VIANINI INDUSTRIA S.p.A 25 CEMENTIR GROUP (Pan-European Cement, & Rmc producer) 30 (b) CALTAGIRONE EDITORE S.p.A. (Newspapers, Advertising, Internet) 35.6 (c) (Water pipes/pilons) (a) Including Aalborg Portland and Unicon pro-forma results 2004 for 12 months; (b) Includes 30 stake held by Mantegna 87 Srl, 100 controlled by Caltagirone S.p.A.; (c) Directly held by: Capitolium (4.3), Vianini Lavori (3.6), Vianini Industria (2.88), Mantegna (10.36), Caltagirone Spa (14.4); (d) The Caltagirone Family owns directly and/or indirectly another 32.3 of CED SpA. 22

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