Italian Investor Conference New York, April 2006

Transcription

1 Italian Investor Conference New York, April 2006

2 Disclaimer 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. For further information, please contact our Investor Relations Department Federica De Medici federica.demedici@rcs.it Fabio Pavan fabio.pavan@rcs.it 2

3 Meeting agenda Who we are 2005: Market trends, RCS Activity 2005: Financial Results Details by Business Unit 3

4 RCS MediaGroup - Who we are The Leading Italian Publishing Group MEDIA SECTOR COUNTRY Traditional Press TITLES / PRODUCTS Free Press NEWSPAPERS MAGAZINES 9 weekly and 20 monthly BOOKS Fiction and non fiction / Educational Fiction and non fiction Fiction and non fiction / Educational Partworks BROADCAST National Radio Digital Radio Syndication Press Agency ADVERTISING Adv house Outdoor adv Adv on foreign media IGPDECAUX (JV) Web sites Online & Mobile entert. TV content prod. DTT TV licence INTERNET/TV DISTRIBUTION (JV) 4

5 Group Structure 100% 100% 99.99% 98.99% 100% 42.1% Grupo 96.1% Unedisa 100% 100% 51.0% 100% 45.0% (2) 100% 34.5% (1) 100% IGPDECAUX (1) Joint-venture RCS (34.5%). JCDecaux (32.3%). Publitransport (33.2%) (2) Joint-venture RCS (45%). De Agostini (45%). Hachette (10%) Starting from 2004 FY the JVs are consolidated with Equity method 5

6 Newspapers ITALY market share 20% SPAIN market share 8% 1 1 Traditional Press Circ. 672,000 avg. daily copies 1 National Newspaper Traditional Press 2 National Newspaper Read. 2,941,000 per day 1 Sport Newspaper Circ. 315,000 avg. daily copies Read. 1,400,000 per day Circ. 389,000 avg. daily copies Read. 3,674,000 per day Free Press 2 National Title Circ. 600,000 avg. daily copies Read. 1,278,000 per day 1 copies and readership Source: Market shares are updated with latest available market data 6

7 Corriere della Sera Brand Extension MUSEUM GUIDES HEALTH ENCYCLOPAEDIA ADD-ONS MAGAZINES / SUPPLEMENTS ECONOMY Corriere Economia REAL ESTATE Trovo Casa LEISURE/ENTERT. Vivi Milano/Roma HEALTH Corriere Salute CLASSIC MUSIC COMICOLLECTION DVD WOMEN: CIRC. 521,000 avg. copies MAGAZINE: CIRC. 647,000 avg. copies HISTORY BOOKS 7

8 Gazzetta dello Sport Brand Extension MAGAZINES / SUPPLEMENTS ADD-ONS SPORTWEEK 346,000 avg. copies DVDs Football / Rugby Teams EVENTS COLLECTIONS (moto & cars) TOUR OF ITALY (cycling) BEACH TOUR DVDs Series The most beautiful sport cars MILAN CITY MARATHON 8

9 El Mundo Brand Extension ADD-ONS MAGAZINES / SUPPLEMENTS LA GUERRA CIVIL ESPAÑOLA LAS RUTAS DEL VINO EN ESPAÑA ECONOMY AUTOMOTIVE RECRUITMENT HEALTH ART BOOKS MAGAZINES LOS MEJORES VIDEOJUEGOS DEL MUNDO FRIENDS DVD NEW MAY 05 9

10 On line: main web sites 4.8 mn monthly unique users; 182 mn monthly pageviews 2 Info Web Site in Italy 2.7 mn monthly unique users; 79 mn monthly pageviews Sport 1 Web Site in Italy 7.1 mn monthly unique users; 232 mn monthly pageviews 1 1 Info Web Site in Europe Spanish language site in the world Source: Market shares are updated with latest available market data 10

11 Magazines ITALY market share 17.7% 2nd player with strong titles in the following sectors Women Family Infancy Home furnishings Business 1 Men Weekly Circ. 521,000 Weekly Circ. 703,000 Monthly Circ.223,000 Monthly Circ. 511,000 NEW Weekly Circ. 244,000 Weekly Circ. 162,000 Monthly Circ.122,000 Monthly Circ. 197,000 Weekly Circ. 85,000 Monthly Circ. 188,000 Weekly Circ. 210,000 Monthly Circ.101,000 Monthly Circ. 46,000 Monthly Circ. 216,000 NEW Monthly Circ. 331,000 Monthly Circ. 56,000 Monthly Circ. 157,000 1 copies Source: Market shares are updated with latest available market data 11

12 Books ITALY FRANCE SPAIN ITALY, FRANCE & UK EDUCATION FICTION AND NON-FICTION FICTION AND NON-FICTION FICTION AND NON-FICTION PARTWORKS 1 Publisher 17% Market share 2 Publisher 12.7% Market share 4 Publisher 2 4.9% Market share DISTRIBUTION UD - Union Distribution Player In Italy 35.3% Market share in Italy Source: Market shares are updated with latest available market data 12

13 Broadcast NATIONAL RADIO DIGITAL RADIO SYNDICATION OF LOCAL RADIOS PRESS AGENCY NEW OCT 05 ~ 5.8 mn daily listeners of news & adv services 1 Syndication News services production for own & third parties Source: Market shares are updated with latest available market data 13

14 Advertising ITALY Leader of press advertising PRESS ADVERTISING FOREIGN MEDIA ADV Sales for Group and third parties titles 18% Market share Advertising broker for foreign media in Italy and italian media abroad 1 Player Source: Market shares are updated with latest available market data 14

15 On line strategic investment Business Description Listed Company, RCS stake 42.1% * CONSUMER DADAmobile: mobile entertainment SuperEva.com: dating Dada.Net (100%): community & personal space Interactive Marketing BUSINESS Business & Technology SELF PROVISIONING * RCS MediaGroup formalized a Shareholders Pact with the company s founding shareholders that altogether controls 56.7% of DADA s capital 15

16 Joint Ventures and other activities DISTRIBUTION OUTDOOR ADVERTISING % own 45.0% 34.5% partners De Agostini Hachette Rusconi JCDecaux Publitransport Distribution to newsstands Street furniture, billboard, transport advertising, airport advertising 16

17 Meeting agenda Who we are 2005: Market trends, RCS Activity 2005: Financial Results Details by Business Unit 17

18 Advertising Italy: 2005 Trend Advertising Gross Revenues, Million Euro 8, % 8,488 YoY growth Internet Cinema Outdoor Radio % Magazines 1, % 1,224 Newspapers 1, % 1,767 TV 4, % 4, TOTAL MARKET Source: Nielsen Media Research 18

19 Italian Newspapers Circulation: RCS vs. Market Circulation, copies/000 per day, Dec 04 Nov 05 YoY growth , % 5, % % TOTAL MARKET RCS Source: FIEG 19

20 Adv. Newspapers Spain: El Mundo vs. Market Million Euro Newspapers circulation > 100,000 copies 2005 Adv. revenues % vs El Paìs % La Vanguardia % % ABC % El Periòdico de Catalunya % El Correo Espanol % La Voz de Galicia % La Razon % TOTAL % Fonte: AEDE 20

21 Spanish Newsp. Circulation: El Mundo vs. Market Circulation, copies/000 per day, Jan 05 Dec 05 Newspapers, circulation > 100,000 copies 2005 Circulation % vs.2004 El Paìs % % ABC % La Vanguardia % El Periòdico de Catalunya % La Razon % TOTAL 1, % Sources: OJD, Observatorio de Prensa Diaria 21

22 Books: RCS vs. Market TOTAL MARKET Fiction and non-fiction Italy - Sales up 3.5% - Revenues increased by 9.8% - Market Share to 12.7% Education Italy - Market increased by 1.1% - Revenues increased by 0.5% - Market Share at 17.0% Flammarion France - Stable market - On a like for like basis, revenues decreased by 1.0% including third party distribution Partworks Italy and other countries - Italy: sales down 11.3%, in terms of volume - Total Revenues increased by 2.7%, due to good performance of foreign activities - Italian Market Share to 35.3% Increase %, 2005 vs

23 RCS Activity up to March 2006 Newspapers Italy New Full Color (July 05) New (Sept 05) New (Feb 05) + new additional cities New Magazine (Sept 05) Redesigned (March 05) JULY 05 Redesigned (Sept 05) Launched (October 05) SEPT 05 SEPT 05 OCT 05 FEB 05 MARCH 05 SEPT 05 23

24 RCS Activity up to March 2006 Newspapers Spain Launch of Yo Dona (May 05) Startup of Full Color project (July 05) Startup of RCS in Portuguese market through A Esfera dos Livros (March 06) JULY 05 MARCH 06 MAY 05 24

25 RCS Activity up to March 2006 Magazines Launches/Relaunches: Style, OK Salute, Dove Case, Novella, Visto,, Newton Restyles: Io Donna, Dove, Gulliver, Oggi Acquired: Dove, Gulliver (ex JV with De Agostini) MEN HEALTH PEOPLE WOMEN LIFE-STYLE SCIENCE REAL ESTATE GOSSIP LIFE-STYLE FAMILY 25

26 RCS Activity up to March 2006 Broadcast NEW RADIO STATION New Web Radio: RIN New Radio Station: PLAY RADIO 1 RADIO IN ITALY WITH VOIP LIFE October, IS ON Da FM y DIGITAL RADIO MOBILE RADIO 26

27 RCS Activity up to March 2006 At the end of FY 2004, RCS had a 15.3% stake in DADA On October 28th, RCS increased its stake in DADA to 23.6% On November 11th, RCS increased in DADA stake up to 41.6% ; after the PTO (closed on January 2006) RCS s stake unchanged On February 2006, RCS s stake increased to 42.1% ITALY UNITED KINGDOM GERMANY UNITED STATES DADA International Presence Starting from 2005 CHINA FRANCE Starting from

28 RCS Mobile RCS Mobile is a new subscription offer in Mobile Information & Entertainment First example of cooperation between DADA and RCS RCS Mobile is a weekly subscription based service (33 per week), taylored by the costumer, that provides a range of downloadable contents from RCS titles As a subscriber to RCS Mobile you can choose from a selection of Information (Corriere, Gazzetta, Max, Astra, Novella 2000) and entertainment services (wall paper, ringtones, games) 28

29 RCS Activity up to March 2006 M&A Acquisition of Acquisition of (September) (September) Disposal of Capital (October) SEPT SEPT OCT 29

30 RCS Summary Operations Burda: disposal of Milchstrasse Group (TVSpielfilm, Amica, Fit for fun and Cinema) and Max Verlag (Max) for 28.0 /mln. Intesa: disposal of 13,360,000 shares for 48.8 /mln. Pirelli: disposal of 73,950,048 rights concerning the capital increased for 8.5 /mln and 73,950,048 shares for 71.5 /mln Joyce Boutique: disposal of shares for 7.7 /mln. Recoletos: gain of 8.0 /mln realized on the sale of RCS shareholding. DARP: purchased the 50% by De Agostini. RCS continues to publish Dove and Gulliver, De Agostini instead nautical and culture titles. Unedisa: purchased another 1%. RCS stake is now 96.1%. 30

31 Meeting agenda Who we are 2005: Market trends, RCS Activity 2005: Financial Results Details by Business Unit 31

32 YE 2005 Results - Summary Million Euro (1) % Total Revenues 2, % 2, % % (3) (2) E.B.I.T.D.A % % % E.B.I.T % % >100% Net Profit % % >100% N.F.P. (47.7) (183.2) Dividends (5) - Ord /100 share - Sav /100 share (4) (1) Restated IAS/IFRS (2) Includes 17.1 /mln Dada revenues (3) Includes 20.5 /mln contribution for paper purchase cost (of which 13.9 /mln referring to 2004); the consolidation of Dada gives a positive contribution of 1.6 /mln (4) Includes 48.8 /mln extraordinary expenses 32 (5) Subject to AGM approval

33 Profit & Loss Million Euro (*) Circulation 1, % 1, % (11.9) Advertising % % 33.9 Other % % 18.3 TOTAL REVENUES 2,191,0 100,0% 2, ,0% 40.3 Cost of goods sold (1,510.6) (68.9%) (1,560.1) (72.5%) 49.6 Labour costs (399.4) (18.2%) (423.4) (19.7%) 24.0 Writedowns (14.0) (0.6%) (12.6) (0.6%) (1.4) Provisions (4.2) (0.2%) (11.1) (0.5%) 6.9 E.B.I.T.D.A % % D&A (45.7) (2.1%) (39.5) (1.8%) (6.2) E.B.I.T % % Net financial incomes (charges) % (3.9) (0.2%) 6.1 Income (charges) from adj. to value of financial assets % % 54.8 Income (charges) from equity investments % % (5.0) PRE-TAX PROFIT % % Taxes (62.4) (2.8%) (17.1) (0.8%) (45.2) Minorities (10.7) (0.5%) (3.6) (0.2%) (7.1) NET PROFIT % % (*) Restated IAS/IFRS 33

34 Revenues & EBITDA Breakdown by BU Million Euro (*) Revenues EBITDA ROS% Revenues EBITDA ROS% Newspapers Italy % % Newspapers Spain % % Magazines % % Broadcast 24.7 (4.9) -19.8% % Advertising % % Books % % Dada % Corporate Activities (17.9) na (49.3) na Others and eliminations (455.3) (0.2) na (430.0) (8.6) na TOTAL RCS 2, % 2, % (*) Restated IAS/IFRS 34

35 Main Joint-Ventures Million Euro, legal entities data, 100% JV (RCS 45% - DeA 45% - Hachette 10%) JV (RCS 34.5% - JCDecaux 32.3% - Publitransport 33.2%) Revenues EBITDA

36 Cash Flow Statement Million Euro Net Financial Position 1/01/2005 (183.2) EBIT D&A 45.7 Financial charges 2.2 Taxes (62.4) NWC 29.3 Funds (6.9) Free Cash Flow CAPEX (143.4) Cash Flow (including CAPEX) 81.7 Dividends (30.0) Cashed-in dividends 10.4 Equity investments (105.5) Equity disposals Other (3.5) Cash Flow Main disposals: Pirelli 80.0 Banca Intesa 48.8 Gruppo BRV 28.0 Recoletos 8.0 Joyce 7.7 Net Financial Position 31/12/2005 (47.7) 36

37 2005 CAPEX, net capital employed and ROI Million Euro Net capital employed (1) CAPEX %=143.4 Full Colour Spain Full Colour Italy Broadcast frequencies ICT 5% 11% 16% 18% 50% ROI (2) 2004 IAS % Facilities & Others 12.9% (1) Capital employed net of financial shareholdings (2) EBIT on capital employed net of financial shareholdings 2004 IAS

38 Balance Sheet Million Euro (*) Net fixed assets 1, % 1, % Tangible & Intangible fixed assets % % Financial fixed assets % % Net working capital % % Reserve for risks and charges (155.4) (13%) (159.6) (14%) Employee termination indemnity (109.0) (9%) (111.7) (10%) CAPITAL EMPLOYED 1, % 1, % Net financial debt % % Equity 1, % % EQUITY & NFD 1, % 1, % (*) Restated IAS/IFRS 38

39 Meeting agenda Who we are 2005: Market trends, RCS Activity 2005: Financial Results Details by Business Unit 39

40 Newspapers Italy P&L Circ. 672,000 avg. daily copies Read. 2,941,000 per day Circ. 600,000 avg. daily copies Circ. 389,000 avg. daily copies Read. 1,278,000 per day Read. 3,674,000 per day ADS, Audipress and Eurisko Million Euro YoY Circulation % % 1.4% Advertising % % 6.4% Add-ons % % (3.8%) Other % % (18.7%) TOTAL REVENUES % % 1.5% EBITDA % % 45.1% 40

41 Unedisa - P&L Circ. 315,000 avg. daily copies Read. 1,314,000 per day OJD, Infoadex Million Euro YoY Circulation % % 5.5% Advertising % % 13.0% Add-ons % % (20.3%) Other % % (10.1%) TOTAL REVENUES % % (0.2%) EBITDA % % 45.5% 41

42 Magazines - P&L (100%) (100%) (100%) (100%) 9 weekly magazines 20 monthly magazines Million Euro YoY Circulation % % 8.7% Advertising % % 3.3% Other % % 40.3% TOTAL REVENUES % % 7.7% EBITDA % % (0.8%) 42

43 Advertising - P&L (51%) Million Euro YoY Adv. House % % 2.2% International Adv % % 15.2% TOTAL REVENUES % % 3.1% 43

44 Books - P&L Million Euro YoY Fiction & non-fic. Italy % % 9.8% Education % % 0.5% Flammarion % % (5.3%) Partworks % % 2.7% Other % % (15.3%) TOTAL REVENUES % % 0.3% EBITDA ,9% % 72.3% 1 Includes Rizzoli International Publications 44

45 Broadcast - P&L Play Radio RIN Digital Radio Syndication of Local Radio Press Agency Million Euro YoY Advertising % % (11.8%) Broadcasting % 2.6 8% 73.1% Others 0.1 0% 0.9 1% n.s. TOTAL REVENUES % % (6.2%) EBITDA (4.9) (19.8%) % n.s. 1 Includes AGR press services 45

46 Back-up 46

47 RCS MediaGroup S.p.A. - P&L Million Euro Dividends (10.4) Net Financial Income * ** Revenues from sales Other Revenues (3.0) D&A (2.3) (2.5) 0.2 Administrative expenses (39.3) (41.0) 1.7 Other expenses (1.8) (2.4) 0.6 Value adjustment on financial assets 17.4 (14.3) 31.7 Extraordinary income (charges) 45.0 (6.4) 51.4 PRE TAX PROFIT Taxes (12.5) NET PROFIT RCS MediaGroup subject to Italian GAAP 47

48 RCS MediaGroup S.p.A. Balance Sheet Million Euro Total Fixed Assets % % Net Working Capital % % Reserve for risks and charges (17.4) (2%) (19.1) (2%) Employee Termination Indemnity (2.3) (0%) (2.4) (0%) NET CAPITAL EMPLOYED % 1, % Net Financial Debt (249.5) (26%) (115.2) (12%) Equity 1, % 1, % EQUITY & NFD % 1, % 48