Deutsche Bank - 6 Italian Conference. Milano, 17 may 2005

Transcription

1 Deutsche Bank - 6 Italian Conference Milano, 17 may 2005

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 1

3 Meeting agenda Who we are st Quarter Results Q&A 2

4 RCS MediaGroup - Who we are MEDIA SECTOR NEWSPAPERS The Leading Italian Publishing Group COUNTRY Traditional Press TITLES / PRODUCTS Free Press MAGAZINES 7 weekly and 23 monthly (including 10 in JV) BOOKS BROADCAST Fiction and non fiction / Educational Fiction and non fiction National Radio Syndication Press Agency Partworks ADVERTISING INTERNET/TV Adv house Outdoor adv Adv on foreign media IGPDECAUX (JV) Web sites TV content prod. DTT TV licence DISTRIBUTION (JV) 3

5 Group Structure 100% 100% 99,99% 98,99% 100% 45% (3) Grupo 95% Unedisa 100% 100% 51% 50% (1) 34,5% (2) DARP IGPDECAUX (1) Joint-venture RCS (50%), De Agostini (50%) (2) Joint-venture RCS (34,5%), JCDecaux (32,3%), Publitransport (33,2%) (3) Joint-venture RCS (45%), De Agostini (45%), Hachette (10%) Starting from 2004 FY the JVs are consolidated with Equity method 4

6 Newspapers ITALY market share 20% SPAIN market share 7% 1 1 Traditional Press Circ avg. daily copies Read per day 1 National 1 Circ avg. daily copies Read per day Newspaper Sport Newspaper Traditional Press 2 National Newspaper Circ avg. daily copies Read per day Free Press 2 National Title Read per day 1 copies and readership Source: Market shares are updated with 2004 FY market data 5

7 Corriere della Sera Brand Extension ART BOOKS ENCYCLOPAEDIA COOK BOOKS ADD-ONS MAGAZINES / SUPPLEMENTS ECONOMY Corriere Economia REAL ESTATE Trovo Casa LEISURE/ENTERT. Vivi Milano/Roma RECRUITMENT Corriere Lavoro HEALTH Corriere Salute WOMEN: CIRC. 521,000 avg. copies MAGAZINE: CIRC. 647,000 avg. copies HISTORY BOOKS Source: Market shares are updated with 2004 FY market data 6

8 Gazzetta dello Sport Brand Extension MAGAZINES / SUPPLEMENTS ADD-ONS MAGAZINE 399,000 avg. copies DVDs/BOOK Football Team FIGURINE PANINI Football Players Stickers Collection DVDs/VHS Series World wide sport key events EVENTS TOUR OF ITALY (cycling) MARATHON BEACH VOLLEY SNOWBOARD Source: Market shares are updated with 2004 FY market data 7

9 El Mundo Brand Extension MAGAZINES / SUPPLEMENTS ADD-ONS ECONOMY AUTOMOTIVE GRAN ENCICLOPEDIA UNIVERSAL RECRUITMENT HEALTH HISTORY BOOKS WOMEN new launch 7 th May 2005 MAGAZINES: 8

10 On line: main web sites 3,1 mn monthly unique users; 105 mn monthly pageviews Info 2 Web Site Source: Market shares are updated with 2004 FY market data 2 mn monthly unique users; 51 mn monthly pageviews 1 Sport Web Site 5,4 mn monthly unique users; 204 mn monthly pageviews 1 1 Info Web Site in Europe Spanish language site in the world 9

11 Magazines ITALY market share 21% 2nd player with strong titles in the following sectors Women Family Infancy Home furnishings Business 1 Weekly Circ. 521,000 Weekly Circ. 675,000 Monthly Circ.223,000 Monthly Circ. 511,000 Weekly Circ. 261,000 Weekly Circ. 171,000 Monthly Circ.122,000 Monthly Circ. 203,000 Weekly Circ. 91,000 Monthly Circ. 202,000 Weekly Circ. 163,000 Monthly Circ.101,000 1 copies Source: Market shares are updated with 2004 FY market data 10

12 Books ITALY market share 14% FRANCE market share 4% ITALY, FRANCE & UK EDUCATION FICTION AND NON-FICTION FICTION AND NON-FICTION PARTWORKS 1 Publisher 2 Publisher 4 1 Publisher Player In Italy 20% Market share 24 Bestsellers RCS in top 100 sellers list DISTRIBUTION UD - Union Distribution 35% Market share in Italy Source: Market shares are updated with 2004 FY market data 11

13 Broadcast ITALY 7,3 mn combined listeners between broadcast station and syndication NATIONAL COMMERCIAL RADIO SYNDICATION OF LOCAL RADIOS PRESS AGENCY 1,3 mn daily listeners ~ 6 mn daily listeners of news & adv services News services production for own & third parties 1 Syndication Source: Market shares are updated with 2004 FY market data 12

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 2004 FY market data 13

15 Joint Ventures and other activities DISTRIBUTION OUTDOOR ADVERTISING MAGAZINES IGPDECAUX DARP % own 45% 34,5% 50% partners De Agostini, Hachette JCDecaux De Agostini Distribution to newsstands Street furniture, billboard, transport advertising, airport advertising 10 monthly titles in special segment: lifestyle, yachting, classical music, archaeology 14

16 Meeting agenda Who we are st Quarter Results Q&A 15

17 Consolidation area Starting from 2004 FY Annual Report the joint-venture companies are consolidated with Equity method in line with IAS principles At revenues and EBIT level, m-dis, IGP-Decaux and Darp will no longer be included in consolidation area The consolidated and Business Unit st Q results will be presented pro-forma 16

18 Q105 Results - Summary Million Euro Q105 Q104 1 YoY FY 2004 TOTAL REVENUES 500,7 493,1 1,5% 2.150,5 EBITDA 34,2 21,7 57,6% 211,1 % margin 6,8% 4,4% 9,8% EBIT 15,6 6,0 160,0% 135,3 % margin 3,1% 1,2% 6,3% EBT 68,0 (4,4) na 105,0 % margin 13,6% -0,9% 4,9% NET PROFIT 78,5 na 77,4 % margin 15,7% na 3,6% NFP (67,1) (170,1) (167,8) 1 Pro-forma 17

19 Profit & Loss (1/2) Million Euro Q Q YoY 2004 Circulation 328,7 65,6% 329,7 66,9% -0,3% 1.370,5 63,7% Advertising 151,8 30,3% 149,6 30,3% 1,5% 688,5 32,0% Other 20,2 4,1% 13,8 2,8% 46,4% 91,5 4,3% TOTAL REVENUES 500,7 100,0% 493,1 100,0% 1,5% 2.150,5 100,0% Cost of goods sold (366,9) -73,3% (372,3) -75,5% (1.531,8) -71,2% Labour costs (96,3) -19,2% (94,4) -19,1% (385,8) -17,9% Provisions (3,3) -0,7% (4,7) -1,0% (21,8) -1,0% EBITDA 34,2 6,8% 21,7 4,4% 57,6% 211,1 9,8% D&A of which: (18,6) -3,7% (15,7) -3,2% (75,8) -3,5% - Goodwill Amortisation (9,5) (6,9) (38,1) EBIT 15,6 3,1% 6,0 1,2% 160,0% 135,3 6,3% 1 Pro-forma 18

20 Profit & Loss (2/2) Million Euro Q Q YoY 2004 EBIT 15,6 3,1% 6,0 1,2% 160,0% 135,3 6,3% Net financial incomes (Charges) (0,7) -0,1% (2,0) -0,4% (4,9) -0,2% Incomes (Charges) from equity invest. and adj to value of financial assets (0,5) -0,1% (5,6) -1,1% 9,3 0,4% Net extraord. Income (charges) 53,6 10,7% (2,8) -0,6% (34,7) -1,6% PRE-TAX PROFIT 68,0 13,6% -4,4-0,9% na 105,0 4,9% Taxes 10,7 (21,9) -1,0% Tax rate na 20,9% Minorities (0,2) 0,0% (5,7) -0,3% NET PROFIT 78,5 15,7% na na na 77,4 3,6% 1 Pro-forma 19

21 Revenues and EBITDA - Breakdown by BU Million Euro Q Q Y/Y SALES EBITDA ROS% SALES EBITDA ROS% SALES EBITDA Newspapers Italy 177,3 28,5 16,1% 182,0 20,0 11,0% (4,7) 8,5 Unedisa 75,4 12,7 16,8% 81,1 13,5 16,6% (5,7) (0,8) Magazines 56,7 (0,4) -0,7% 60,5 0,9 1,5% (3,8) (1,3) Broadcast 4,9 (0,5) -10,2% 5,2 0,3 5,8% (0,3) (0,8) Advertising 119,0 0,6 0,5% 117,7 1,1 0,9% 1,3 (0,5) Books 158,3 (3,3) -2,1% 139,8 (5,0) -3,6% 18,5 1,7 Others and elisions (90,9) (3,4) n.s. (93,2) (9,1) n.s. 2,3 5,7 Total Group 500,7 34,2 6,8% 493,1 21,7 4,4% 7,6 12,5 * 1 Pro-forma 20

22 Newspapers Italy P&L Circ avg. daily copies Read per day Circ avg. daily copies Read per day Read per day ADS, Audipress and Eurisko: 2004 FY data Million Euro Q105 Q104 1 YoY 2004 Circulation/Other 53,0 30% 57,6 32% (8,0%) 239,8 33% Advertising 64,0 36% 59,9 33% 6,8% 277,7 39% Add-ons 60,3 34% 64,5 35% (6,5%) 199,0 28% TOTAL REVENUES 177,3 100% 182,0 100% (2,6%) 716,5 100% EBITDA 28,5 16,1% 20,0 11,0% 42,5% 100,8 14,1% 1 Pro-forma 21

23 Unedisa - P&L Circ avg. daily copies Read per day Million Euro OJD, Infoadex: 2004 FY data Q105 Q104 1 YoY 2004 Circulation/Other 31,1 41% 29,4 36% 5,8% 114,4 37% Advertising 26,0 35% 23,4 29% 11,1% 109,2 35% Add-ons 18,3 24% 28,3 35% (35,3%) 87,8 28% TOTAL REVENUES 75,4 100% 81,1 100% (7,0%) 311,4 100% EBITDA 12,7 16,8% 13,5 16,6% (5,9%) 51,5 16,5% 1 Pro-forma 22

24 Magazines - P&L Million Euro (100%) (100%) 7 weekly 13 monthly Q105 Q104 1 YoY 2004 Circulation 27,0 48% 29,5 49% (8,5%) 116,5 43% Advertising 26,1 46% 27,1 45% (3,7%) 140,8 52% Other 3,6 6% 3,9 6% (7,7%) 15,3 5% TOTAL REVENUES 56,7 100% 60,5 100% (6,3%) 272,6 100% EBITDA (0,4) -0,7% 0,9 1,5% ns 25,9 9,5% 1 Pro-forma 23

25 Advertising - P&L (51%) Rcs Dada Advertising (51%) 2 Million Euro Q105 Q104 1 YoY 2004 Adv. House 107,0 90% 106,1 90% 0,8% 507,8 92% International Adv. 11,0 9% 10,9 9% 0,9% 36,3 7% Web Adv. 1,0 1% 0,7 1% 42,9% 4,7 1% TOTAL REVENUES 119,0 100% 117,7 100% 1,1% 548,8 100% EBITDA 6,8 5,7% 4,3 3,7% 58,1% 1 Pro-forma 2 Starting from Jan 2005: 100% owned and merged in RCS Pubblicità 24

26 Books - P&L Million Euro Q105 Q104 1 YoY 2004 Fiction & non-fic. Italy 33,5 21% 23,1 16% 45,0% 123,1 17% Education 4,4 3% 4,3 3% 2,3% 94,1 13% Flammarion 50,4 32% 51,4 37% -1,9% 229,9 33% Partworks 65,1 41% 54,4 39% 19,7% 228,9 33% Other 2 4,9 3% 6,6 5% -25,8% 28,4 4% TOTAL REVENUES 158,3 100% 139,8 100% 13,2% 704,4 100% EBITDA (3,3) -2,1% (5,0) -3,6% ns 51,5 7,3% 1 Pro-forma 2 Includes Rizzoli International Publications 25

27 Broadcast - P&L RIN Radio Italia Network Syndication of Local Radio Press Agency Million Euro Q105 Q104 1 YoY 2004 Advertising 4,0 82% 4,6 88% -13,0% 22,7 86% Broadcasting 2 0,8 16% 0,6 12% 33,3% 2,9 11% Others 0,1 2% 0,0 0% ns 0,8 3% TOTAL REVENUES 4,9 100% 5,2 100% -5,8% 26,4 100% EBITDA (0,5) -10,2% 0,3 5,8% ns 1,2 4,5% 1 Pro-forma 2 Includes AGR press services 26

28 Main Joint-Ventures Million Euro, legal entities data, 100% IGPDECAUX JV (RCS - DeA - Hachette-Rusconi) JV (RCS - JCDecaux - Publitrasport) Q1 05 Q Q1 05 Q Revenues 75,1 42,3 40,2 36,0 Net profit (loss) 3,9 3,6 (0,2) (2,6) 1 Pro-forma 27

29 Cash flow Statement Million Euro Net Financial Position 31/12/2004 (167,8) EBIT 15,6 D&A 18,6 Financial charges (0,7) Taxes 10,7 NWC 0,5 Funds (10,9) Free Cash Flow 33,8 CAPEX (13,6) Cash Flow (including CAPEX) 20,2 Dividends Cashed-in dividends Equity investments (16,5) Equity disposals 93,2 Other 3,8 Cash Flow 100,7 Banca Intesa 48,8 German Magazines 28,0 Pirelli Option Rights 8,5 Joyce 7,7 Net Financial Position 31/03/2005 (67,1) 28

30 Balance Sheet Million Euro Net fixed assets 1.100,6 90,5% 1.134,0 91,5% Tangible & Intangible fixed assets 657,3 54,0% 661,9 53,4% Financial fixed assets 443,3 36,4% 472,1 38,1% Net working capital 347,8 28,6% 348,3 28,1% Reserve for risks and charges (128,2) (10,5%) (140,2) (11,3%) Employee termination indemnity (103,9) (8,5%) (102,8) (8,3%) CAPITAL EMPLOYED 1.216,3 100% 1.239,3 100% Net financial debt 67,1 5,5% 167,8 13,5% Equity 1.149,2 94,5% 1.071,5 86,5% EQUITY & NFD 1.216,3 100% 1.239,3 100% 29

31 Meeting agenda Who we are st Quarter Results Q&A 30

32 Deutsche Bank - 6 Italian Conference Milano, 17 may 2005

33 Back-up slides Q P&L and BS of Parent Company Shareholders Structure 32

34 RCS MediaGroup S.p.A. - P&L Million Euro Q Q YoY 2004 Dividends 1,0 16,7% (1,0) 58,0 65,3% Net financial income (charges) 1,2 17,4% 0,3 5,0% 0,9 3,1 3,5% Revenues from sales and services 5,7 82,6% 4,7 78,3% 1,0 27,7 31,2% TOTAL REVENUES 6,9 100,0% 6,0 100,0% 0,9 88,8 100,0% Dep., Am. & write down (0,6) (8,7%) (0,1) (1,7%) (0,5) (2,5) (2,8%) Operating costs (8,0) n.s. (10,7) n.s. 2,7 (43,4) (48,9%) Adjustments to value of fin. assets 0,0 n.s. (2,4) n.s. 2,4 (14,3) n.s. Net extraord. income (charges) 23,8 n.s. (1,1) n.s. 24,9 (6,4) (7,2%) PRE-TAX PROFIT 22,1 n.s. (8,3) n.s. 30,4 22,2 25,0% Taxes 21,4 21,4 36,0 40,5% NET PROFIT 43,5 n.s. 43,5 58,2 65,5% 33

35 RCS MediaGroup S.p.A. Balance Sheet Million Euro Total Fixed Assets 902,0 89,5% 938,9 92,6% Net Working Capital 125,5 12,5% 96,2 9,5% Reserve for risks and charges (17,1) (1,7%) (19,1) (1,9%) Employee Termination Idemnity (2,4) (0,2%) (2,4) (0,2%) NET CAPITAL EMPLOYED 1.008,0 100,0% 1.013,6 100,0% Net Cash and Banks (164,3) (16,3%) (115,2) (11,4%) Equity 1.172,3 116,3% 1.128,9 111,4% EQUITY & NFD 1.008,0 100,0% 1.013,6 100,0% 34

36 Shareholders Structure * Held by 15 Shareholders Shareholders Pact * 57,476% Expiry date: July 2007 Pre-emption right: 18 months Own Shares 3,655%** Significant Shareholders 8,957% Tot. Ordinary Shares: Tot. Savings Shares: Free Float 29,912% COMPANY Mediobanca Fiat Partecipazioni Gruppo Italmobiliare Fondiaria SAI Generali Ass. Vie Dorint Holding (Della Valle) Pirelli & C. Banca Intesa Capitalia Sinpar (Lucchini) Merloni Invest Mittel Er.Fin. (Bertazzoni) Edison Gemina Totale % on ord. share 13,13% 10,19% 7,00% 5,00% 3,56% 3,00% 2,91% 2,91% 2,00% 1,88% 1,50% 1,23% 1,18% 1,00% 1,00% 57,48% ** Before stock dividend distribution, equal to 1% 35