2006 Annual Results May 2007

Transcription

1 2006 Annual Results May 2007

2 Disclaimer This document has been prepared by Caltagirone Editore S.p.A. 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 our Investor Relations Office: Tel: Fax:

3 Agenda The Group N. 2 in the domestic market The Group: traditional newspapers and free press Traditional newspapers The acquisition of Il Gazzettino Traditional Newspapers Italian newspapers industry Newspapers advertising market The first 15 Italian newspapers Strong local leadership Leadership in the Centre and North East of Italy Free Press Free Press: the market N. 1 in domestic market: Leggo Free Press: Leggo Financial highlights Profitability over time Financial highlights: full year 2006 Appendix Main shareholders Caltagirone Spa Il Messaggero headquarter in Via del Tritone, Rome 3

4 The Group 4

5 N.2 in the domestic market Caltagirone Editore is the 2nd Italian publishing group with 23.9 share of average daily readers (1) Daily readers 6,059 Daily readers 5,376 Data in thousands Daily readers 4,268 26,94 23,90 18,97 Daily readers 2,350 10,45 Gruppo Editoriale L Espresso (1) Source: Audipress 2006/II excluding financial and sports daily newspapers and including free press 5

6 The Group: traditional newspapers and free press Traditional newspapers (1) Advertising Free Press Il Messaggero Circulation 229,471 Readership 1,433,000 l Mattino Circulation 86,465 Readership 757,000 Il Gazzettino Circulation 97,525 Readership 685,000 Corriere Adriatico Circulation 20,044 Readership 283,000 Nuovo q Circulation 19,699 Readership 210,000 Advertising agency for the Group 2,008,000 daily readers (2) 2006 Sales: 25 millions National network in 15 cities Avg. 24 pages full color (1) Sources of circulation and readership are respectively ADS 2006 (daily moving average of 12 months from January to December 2006) and Audipress 2006/II (2) Fonte: Audipress 2006/II 6

7 Traditional newspapers National newspaper with 13 local editions Avg. 50 pages up to maximum 72 pages full color National newspaper with 8 local editions Avg. 50 pages up to maximum 64 pages, of which 40 in color National newspaper with 8 local editions Avg. 50 pages up to maximum 64 pages, of which 12 in color Regional newspaper with 7 local editions Avg. 52 pages up to 64 pages, of which 16 in color Newspaper with 3 local editions Avg. 45 pages up to 56 pages, of which 8 in color 7

8 The acquisition of Il Gazzettino With Il Gazzettino di Venezia acquisition, CED becomes the 2nd Italian publishing Group with over 5.4 millions of readers (1) Strategy Expansion of the Group in the North Eastern part of Italy and stronger competitive position in the Adriatic regions The deal Until December the 31th 2006, CED acquired of share capital paying millions of Euro Further 51 millions of Euro will be paid out against put and call option agreement on 32.7 of share capital CED Il Gazzettino spa in options 2006 Highlights Sales EBITDA (Euro 000) 29, Area Nord spa Advertising agency 2006 Sales = 29.8 m 86 Telefriuli spa Regional broadcast tv 2006 Sales = 1.5 m EBT Net debt -2, (1) Source: Audipress 2006/II excluding financial and sports daily newspapers and including free press. Daily avg. readers 8

9 Traditional newspapers 9

10 Italian newspapers industry Readership has been growing gradually over the last few years 25 Avg. daily readers (millions) CAGR = ,0 7,0 6,0 19 5, ,50 20,44 20,53 21,41 22,49 4,0 3,0 2,0 9 1,0 7 0, (2) Traditional newspapers industry Var -1,0 (1) Source: Audipress Autumn 2002, 2003, 2004/II, 2005/II, 2006/II, on total readers (including financial and sports daily newspapers) (2) 2006 data first include free press 10

11 Newspaper advertising market (1) In 2006 both national and local advertising market trended upwards thousands 1,728 1,679 1,720 1,767 1, National Commercial Local Commercial Newspapers change national change local change (1) Source: Nielsen Media Research 11

12 The first 15 Italian newspapers (1) CED is the 2nd Italian Group by readers, with 4 titles among the first La Repubblica Il Corriere della Sera Leggo Avg. daily readers /1000 City Metro La Stampa Il Messaggero Il Resto del Carlino La Nazione Il Mattino Il Giornale Il Gazzettino La Gazzetta del Mezzogiorno Il Tirreno Il Secolo XIX (1) Source: Audipress 2006/II excluding financial and sports daily newspapers and including free press

13 CED has a strong local leadership (1) Regions in which CED is leader Considerable presence (> 10) Leggo s presence (> 4) (2) READERSHIP IN VENETO 40.2 Il Gazzettino Arena Giornale Vicenza Mattino di Padova Leggo 11,9 10,6 14,6 13,9 29,5 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 READERSHIP IN LAZIO 61.7 Il Messaggero Metro Leggo La Repubblica City 17,0 16,5 14,1 22,3 44,6 Corriere Adriatico Resto del Carlino Il Messaggero Corriere della Sera READERSHIP IN MARCHE 61.2 Repubblica 11,3 11,2 16,1 44,9 42,0 Corriere della Sera 7,7 0,0 10,0 20,0 30,0 40,0 50,0 (4) 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0 50,0 READERSHIP IN CAMPANIA 63.2 Quotidiano di Puglia READERSHIP IN SALENTO (3) ,7 Il Mattino La Repubblica 21,6 48,0 Gazzetta del Mezzogiorno Repubblica 15,5 39,7 Leggo 15,0 City 10,9 Il Corriere della Sera 7,9 0,0 10,0 20,0 30,0 40,0 50,0 60,0 Il Messaggero Corriere della Sera 0,0 5,0 10,0 9,2 13,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0 (1) Source: Audipress 2006/II, avg. daily readers excluding financial and sports daily newspapers and including free press (2) Readership is as follows: 5.35 in Tuscany, 4.5 in Emilia Romagna (3) 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 e Taranto (Salento) (4) In Puglia, Calabria and Basilicata both Il Messaggero and Il Mattino are sold combined with local newspapers 13

14 Leadership in the Centre and North East of Italy Group newspapers have strong readership in the North East and in the central regions of Italy (1) READERSHIP IN THE MACROREGION (2) 55.3 Il Messaggero 24,3 READERSHIP IN VENETO + FRIULI VENEZIA GIULIA 35.1 (3) La Repubblica 16,6 Il Gazzettino 26,7 Mattino 13,8 Messaggero Veneto 11,6 Leggo 12,0 Arena 11,1 Metro 10,7 Giornale di Vicenza 10,6 City Corriere della Sera Corriere Adriatico Il Resto del Carlino Corriere Umbria 5,2 5,0 4,9 9,5 8,4 Corriere della Sera Mattino di Padova La Repubblica Piccolo 9,5 9,0 8,6 8,2 Centro 4,0 Leggo 8,0 Tempo Il Giornale L'Unità 1,5 3,5 3,3 0,0 5,0 10,0 15,0 20,0 25,0 30,0 0,0 5,0 10,0 15,0 20,0 25,0 30,0 (1) Source: Audipress 2006/II, avg. daily readers excluding financial and sports daily newspapers and including free press (2) Macroregion consists of Lazio, Campania, Marches, Umbria, Abruzzi and Molise (3) It includes also Messaggero s readers (0.35) 14

15 Free Press 15

16 Free press: the market Free press is continuing to gain market share from traditional newspapers (1) 3 of total circulation ,6 20,2 22,6 23,2 25,1 26,1 27, , E 2007E Free press share of circulation (1) Source: ADS and Eurisko data. Percentages are based on free press circulation on total newspapers circulation 16

17 N.1 in domestic market Leggo is leader in the free press market with 37.6 share of avg. daily readers, 19 more than City and 22 more than Metro (1) Avg. daily readers 1,647,000 1,691,000 2,008,000 Metro City Leggo (1) Source: Audipress 2006/II 17

18 Free Press: Leggo is the 1st free newspaper in Italy with 2,008,000 avg daily readers in 9 regions (1) PIEMONTE 242,000 avg. daily readers LIGURIA 31,000 avg. daily readers TUSCANY 87,000 avg. daily readers LOMBARDY 595,000 avg. daily readers Torino Como Varese Genova Bergamo Verona Venezia / Mestre Brescia Milano Padova Firenze Bologna Roma Napoli VENETO avg. daily readers Bari EMILIA ROMAGNA avg. daily readers LAZIO avg. daily readers PUGLIA avg. daily readers CAMPANIA avg. daily readers (1) Source: Audipress 2006/II 18

19 Financial highlights 19

20 Profitability over time Strong advertising increase Reorganization of activities and completion of turnaround process Sharp domestic advertising decline Further improvement in efficiency through labor cost reduction Slight increase in local advertising market Leggo adv. revenue increase and successful promotional initiatives EBITDA margin EBIT margin 29,1 31,4 6,0 14,7 6,7 17,8 10,9 22,1 22,6 18,2 17,3 6,9 7,6 22,1 11,5 21,3 14,1 22,6 16,6 16,3 11,5 1, Caltagirone Group acquires Il Messaggero and Il Mattino Caltagirone Editore IPO Launch of Leggo New printing plant (Il Messaggero) 6 new cities for Leggo Acquisitions of Il Corriere Adriatico and Il NuovoQuotidianodi Puglia Acquisition of Il Gazzettino 20

21 Financial highlights Advertising is the main revenue driver Circulation Promotions Advertis ing Internet & Services Others millions

22 Financial highlights: full year 2006 Euro thousands 2006 (1) SEP Group Circulation Advertising Services Other revenues Total revenues Raw materials Personnel Services Use of third-party assets Other costs Other operating costs (2) 83, ,412 8,101 5, ,583 (30,593) (86,135) (95,637) (8,133) (2,891) (2,497) 14,608 13, ,153 (3,865) (12,930) (10,462) (473) (740) (655) 98, ,233 8,102 5, ,736 (34,458) (99,065) (106,099) (8,606) (3,631) (3,152) 85, ,692 6,269 8, ,629 (28,148) (85,611) (89,924) (7,771) (2,103) (1,396) Revenues improved thanks to Il Gazzettino consolidation since H Main newspapers cover price was increased to 1 Euro from December the 1st 2006 EBITDA suffered from the discontinued of state grants to the press industry ( 1.8m), paper international price and other operating costs increase Ebitda D & A Other (costs)/revenues Ebit Financial income Financial charges Financial result Pre-tax profit Taxes 49,697 (7,832) (4,788) 37,077 16,120 (8,569) 7,551 44,628 (8,788) 28 (1,202) (874) (2,048) 50 (182) (132) (2,180) (416) 49,795 (9,034) (5,662) 35,029 16,170 (8,751) 7,419 42,448 (9,204) 62,676 (10,405) (6,238) 46,033 78,769 (3,740) 75, ,062 (26,495) The Group expects personnel restructuring costs of around 2.9m due to 80 redundancies, which should generate savings of around 5.3 m from financial result benefited from gains realized on the disposal of stakes in Rcs Media Group and BNL Profit before minorities 35,840 (2,596) 33,244 94, Minorities (1,121) 7 (1,114) (260) Group net profit 34,719 (2,589) 32,130 94, (1) At constant perimeter 22

23 Financial highlights: full year 2006 Circulation revenues (Euro thousands) Circulation 78,266 68, Promotions 20,184 16, Il Messaggero 12,478 10, Il Mattino 4,053 4, Corriere Adriatico Quotidiano di Puglia Il Gazzettino 2,494 - n.a. Total 98,450 85, Advertising revenues (Euro thousands) Il Messaggero 100, , Il Mattino 38,213 37, Leggo 24,692 23, Quotidiano di Puglia 6,902 6, Corriere Adriatico 5,316 3, Il Gazzettino 13,821 - n.a Others 2,800 3, Total 192, ,

24 Financial highlights: full year Net Financial Position on December 31st, Dividend distributed Il Gazzettino Net operating acquisition cash flow (1) (1) Including extraordinary capex of around 9 millions 24

25 Appendix 25

26 Main shareholders FREE FLOAT 29,8 CALTAGIRONE SpA (1) 35,6 EDIZIONE HOLDING 2,24 CALTAGIRONE FAMILY 32,4 N of ordinary shares: 125,000,000 Market capitalization: 810 millions (2) (1) Indirectly through Edigolfo spa (2) As of May 18,

27 Caltagirone Spa ¾ Caltagirone Spa is a holding company which controls three different subsidiaries active in the cement, media and construction industries ¾ 2006 consolidated sales achieved around 1.5 bn ¾ The Group structure is the following: Mkt cap: cap: 1049m (a) 66.7 (b) 56.5 (c) CONSTRUCTION CEMENT (d) MEDIA 25.5 Water pipes / pilons General contractor Mkt cap: 1743 m Mkt cap: 810 m Mkt cap: 655 m (a) (b) (c) (d) Mkt cap.: 258 m Mkt cap.: 20 m Pan-European Cement & RMC producer Mkt cap is based on prices at May 18th, 2007 Of which 54.1 directly and 12.6 through Capitolium Spa (100 controlled company) Of which 50.0 directly and 6.4 through Capitolium Spa. Other companies of the Group own another 7.7 Through Edigolfo spa. The Caltagirone Family owns directly and/or indirectly another 32 of Caltagirone Editore SpA Newspapers, Advertising, Internet 27

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