2007 Annual Results May 2008

Transcription

1 2007 Annual Results May 2008

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 Traditional newspapers Newspapers advertising market The first 15 Italian newspapers Regional leadership Leadership in the Centre and North East of Italy Free Press Leadership in the domestic market Financial highlights Profitability over time Financial highlights Main 2007 data Il Gazzettino restructuring Appendix Shareholders Caltagirone Spa Il Messaggero headquarter in Via del Tritone, Rome 3

4 The Group: N.2 in the domestic market Caltagirone Editore is the 2nd Italian publishing group with 24.43% share of average daily readers (1) Daily readers 6,005 Daily readers 5,570 Data in thousands Daily readers 4,608 26,34% 24,43% 20,21% Daily readers 2,312 10,14% Gruppo Editoriale L Espresso (1) Source: Audipress 2007/II excluding specialized newspapers (financial and sports) and including free press 4

5 The Group: traditional newspapers and free press Traditional newspapers (1) Free Press Advertising Il Messaggero Circulation Readership Il Mattino Circulation Readership Il Gazzettino Circulation Readership Corriere Adriatico Circulation Readership Nuovo q Circulation Readership daily readers (2) Over 27 million of Euro of advertising revenues in 2007 National network in 15 cities Average 28 pages full colour Advertising agency for the Group (1) Sources of circulation and readership are respectively ADS 2007 (daily moving average of 12 months from January to December 2007) and Audipress 2007/II (2) Source: Audipress 2007/II 5

6 Traditional newspapers 6

7 Traditional newspapers National newspaper with 13 local editions Avg. 54 pages up to maximum 72 pages full color National newspaper with 8 local editions Avg. 52 pages up to maximum 64 pages, of which 40 in color National newspaper with 9 local editions Avg. 48 pages up to maximum 64 pages, of which 12 in color Regional newspaper with 6 local editions Avg. 54 pages up to 64 pages, of which 16 in color Multiple provincial newspaper with 3 local editions Avg. 48 pages up to 64 pages, of which 48 in color 7

8 Newspaper advertising market (1) In 2007 both national and local advertising market was stable thousands 1,728 1,679 1,720 1,770 1,800 1, National Commercial Local Commercial Newspapers (1) Source: Nielsen Media Research 8

9 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 City Metro La Stampa Il Messaggero Il Resto del Carlino Epolis La Nazione Il Mattino Avg. daily readers /1000 Il Gazzettino La Gazzetta del Mezzogiorno Il Giornale Il Secolo XIX (1) Source: Audipress 2007/II excluding financial and sports daily newspapers and including free press

10 CED has a strong local leadership (1) Regions in which CED is leader Considerable presence (> 10%) READERSHIP IN VENETO 40.3% Leggo s presence (> 4%) (2) Caltagirone Editore 40,3% Gr. Espresso-Repubblica 31,7% Athesis 28,3% READERSHIP IN LAZIO 61.4% Caltagirone Editore Rcs 30,2% 61,4% Rcs 13,7% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% READERSHIP IN MARCHE 66.2% Caltagirone Editore Poligrafici Ed. 37,7% 66,2% Metro 24,6% Rcs 10,4% Gr. Espresso- Repubblica 17,6% Gr. Espresso-Repubblica 9,8% Soc. Ed. Il Tempo 4,6% (4) 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% Caltagirone Editore Gr. Espresso - Repubblica 0,00 10,00 20,00 30,00 40,00 % % % % % READERSHIP IN CAMPANIA 59.1% Rcs 23,8% 21,8% 50,00 % 60,00 % 70,00 % 59,1% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% Caltagirone Editore EdiSud SpA Gr. Espresso - Repubblica Rcs READERSHIP IN SALENTO (3) 65.3% 12,1% 10,7% 40,7% 65,3% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% (1) Source: Audipress 2007/II, avg. daily readers excluding financial and sports daily newspapers and including free press (2) In these regions Leggo readership is as follows: 6.74% in Tuscany, 7% 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 10

11 Leadership in the Centre and North East of Italy Group newspapers have an absolute leadership in the central southern regions and in the North East of Italy (1) READERSHIP IN THE MACROREGION (2) 54.6% READERSHIP IN VENETO 40.3% (3) Caltagirone Editore 54,6% Caltagirone Editore 40,3% Rcs 22,6% Gr. Espresso- Repubblica 31,7% Gruppo Espresso - Repubblica 21,0% Athesis 28,3% Rcs 13,7% Metro 11,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% Poligrafici Ed. 5,8% 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% (1) Source: Audipress 2007/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 (0.05%) 11

12 Free Press 12

13 Free Press: Leggo is the 1st free newspaper in Italy with 2,262,000 avg daily readers in 9 regions (1) PIEMONTE 264,000 avg. daily readers LIGURIA 24,000 avg. daily readers TUSCANY 106,000 avg. daily readers LOMBARDY 633,000 avg. daily readers Torino Como Varese Genova Bergamo Verona Venezia / Mestre Brescia Milano Padova Firenze Bologna Roma Napoli VENETO 270,000 avg. daily readers Bari EMILIA ROMAGNA 147,000 avg. daily readers LAZIO 488,000 avg. daily readers PUGLIA 86,000 avg. daily readers CAMPANIA 230,000 avg. daily readers (1) Source: Audipress 2007/II 13

14 N.1 in the domestic market Leggo is leader in the free press market with 37.8% share, 20% of avg. daily readers more than City and 23% more than Metro (1) Avg. daily readers 2,262,000 1,839,000 1,886,000 Metro City Leggo (1) Source: Audipress 2007/II 14

15 Financial highlights 15

16 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% 16,9% 11,5% 12,1% 1,0% Caltagirone Group acquires Il Messaggero and Il Mattino 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 Restrucutring of Il Gazzettino 16

17 Il Gazzettino restructuring (1) Restructuring plan showed important results Improvement of all economic and patrimonial ratios and convergence to Group margins Reduction in the personnel overhead costs of approximately euro 3 million per year following the reduction of 43 employees in Centro Stampa Veneto in 2006 The entrance of Piemme adverting agency permitted an improvement of advertising collection of 14.5% in the second half 2007 (comparing to 2006) Advertising collection trend millions +6.8% 13,8 +7.2% 14,8 15,8 2 Half Half Half 2007 (1) Acquired by Caltagirone Editore in July

18 Financial highlights Advertising is the main revenue driver Circulation Prodotti collaterali Advertising Internet & Services Others millions 5,0 4,0 4,0 2,0 4,0 5,0 3,0 2,0 4,4 2,5 8,7 3,6 8,4 6,3 6,0 8, ,5 4,

19 Financial highlights: full year 2007 Euro thousands Circulation Advertising Services Other revenues Total revenues Raw materials Personnel Services Ebitda D&A Effect of employee indemnity reform Ebit Financial income Financial charges Financial result Pre-tax profit Taxes Profit before minorities 2007 (1) 88, ,249 4,159 8, ,430 (35,318) (98,741) (95,786) 52,057 (12,680) (1,196) 38,181 37,726 (10,211) 27,515 65,699 (3,743) 61,956 Gazzettino Group 14,257 15, ,457 (3,815) (12,728) (9,153) 3,161 (1,308) (356) 1, (310) (289) 1,208 (1,069) , ,652 4,159 9, ,887 (39,133) (111,469) (104,939) 55,218 (13,988) (1,552) 39,678 37,747 (10,521) 27,226 66,907 (4,812) 62, , ,233 8,102 5, ,736 (34,458) (98,059) (106,099) 50,731 (14,696) - 36,035 16,170 (10,195) 5,975 42,010 (9,059) 32,951 % 4.2% 9.6% -48.7% 59.4% 7.3% 13.6% 13.7% -1.1% 8.8% -4.8% Na 10.1% 133.4% 3.2% 355.7% 59.3% -46.9% 88.4% Although promotion revenues halved ( 9.4m), sales of newpapers improved thanks to increased cover price ( 1 since 12/1/06) and to Il Gazzettino consolidation Ebitda margin increased from 10.7% of 2006 to 15.6% following a highly selective strategy Raw material price increased by 13.6% - 2.5% at constant perimetermostly due paper international price increase Personnel costs at constant perimeter benefited from staff reduction and was negatively affected by industry wage automatisms Financial result benefited from gains realized on stakes disposals ( 18.3m) Minorities (879) 25 (854) (1,114) 23.3% Group net profit 61, ,241 31, % (1) At constant perimeter 19

20 Financial highlights 2007 Circulation revenues (Euro thousands) % Circulation 91,805 78, % Promotions 10,788 20, % Il Messaggero 5,449 12, % Il Mattino 1,660 4, % Corriere Adriatico % Quotidiano di Puglia % Il Gazzettino 3,297 2,494 (1) 32.2% Total 102,593 98, % Advertising revenues (Euro thousands) % Il Messaggero 101, , % Il Mattino 36,663 38, % Leggo 27,358 24, % Quotidiano di Puglia 7,035 6, % Corriere Adriatico 5,949 5, % Il Gazzettino 30,595 13,821 (1) Na Others 1,134 2, % Total 210, , % (1) It includes Il Gazzettino Group revenues of 2 nd half

21 Financial highlights 2007 Net Financial Position on December 31st, Dividend distributed 18.3 Extraordinary Cash Flow (1) 27.4 Net Operating Cash Flow (1) Including capital gains from disposal of the stakes of Banca Monte dei Paschi ( 14.6m) and B2Win ( 3.7m) 21

22 Appendix 22

23 Main shareholders FREE FLOAT 29,8% GAETANO CALTAGIRONE 2,4% EDIZIONE HOLDING 2,24% FRANCESCO GAETANO CALTAGIRONE (1) 65,6% N of ordinary shares: 125,000,000 Market capitalization: 505 millions (2) (1) Directly and indirectly through controlled companies (2) As of April 7,

24 Caltagirone Spa Caltagirone Spa is a holding company which controls three different subsidiaries active in the cement, media and construction industries 2007 consolidated sales achieved around 1.7 bn The Group structure is the following: Mkt cap: 625m (a) 66.7% (b) 56.5% (c) 31.7% 35.6% (d) CONSTRUCTION CEMENT MEDIA 25.5% Water pipes / pilons General contractor Mkt cap: m Mkt cap: 492 m Cap.: 96 m Cap.: 414 m Mkt cap.: 211 m Pan-European Cement & RMC producer Mkt cap.: 14 m Newspapers, Advertising, Internet (a) Mkt cap is based on prices at April 21th, 2008 (b) Of which 54.1% directly and 12.6% through Capitolium Spa (100% controlled company) (c) Of which 50.0% directly and 6.4% through Capitolium Spa. Other companies of the Group own another 7.7% (d) Through Parted 1982 spa. The Caltagirone Family owns directly and/or indirectly another 32% of Caltagirone Editore SpA 24

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