Q Results. Milano, May 14th 2014

Transcription

1 Q Results Milano, May 14th 2014

2 Agenda Market Trends & Digital Business Q Results Business Units Focus 2

3 Continued delivery of Plan Shift towards digital business Increasing weight of digital revenues Cost reduction plan 14m in Q1 FY target 50/60m Focus on core assets Sale completed of final block of via Solferino On top of the Plan Savings shares conversion Simplified capital structure Up to 60m cash in 3

4 Q Results on track EUR million Q vs. Budget REVENUE EFFICIENCIES EBITDA ex non recurring items (29.0) ~(2.2%) High end of our guidance range for FY (50/60) In line Non recurring items (16.9) In line with FY guidance (40) (1) NFP (520.8) In line considering seasonlity (1) 2014 P&L expected impact 4

5 Recent digital initiatives Power Brands Books Video & Mobile Corriere.it & Gazzetta.it: Reorganised and re-styled Style.it Metered Paywall ElMundo RcsLibri.it MyStudio Integrated platform Corriere.it app City1Tap Youreporter Mamma Imperfetta 2 Advertising Offer ecommerce RCS Nest Incubator Branded Content Native Advertising RTB/Programmatic Buying Spotwide Made.com MyBeautyBox DoveClub.it QuiMammeShop Spain Marca Gaming & Betting Network Mamas Intertwine Dunkest 5

6 Digital revenue at March 31 st 2014 % of revenue % increase Q12014/Q12013 RCS GROUP (1) ITALY 15.2% +1.2% vs 2013 SPAIN 13.4% +6.2% vs % +3.8% vs 2013 BOOKS 3.8% +54.0% vs (1) Italy excluding books

7 Italy: Advertising Trends Jan-Feb 2014 Advertising Gross Revenue, EUR million (%) (%) Market -4.3% Online (1) -6.3% Radio +7.5% Magazines -14.7% +4.4% -6.4% Newspapers -16.3% -17.3% TV +0.2% Other (2) -12.9% Jan-Feb 2013 Jan-Feb TOTAL MARKET (1) Excluding Search Adv (2) Including: Cinema, Outdoor, Direct Mail,Transit, Out of home TV (3) RCS advertising house excluding third party Source: Nielsen Media Research RCS (3)

8 Spain: Advertising Trends Jan-Mar 2014 Advertising Gross Revenue, EUR million (%) (%) Market -1.3% Cinema +25.0% Outdoor -3.4% Online +1.2% -2.4% Radio -1.0% -31.3% Magazines -11.9% -9.7% Newspapers -4.8% -6.3% TV +1.1% Jan-Mar 2013 TOTAL MARKET Jan-Mar 2014 RCS 8 Source: Arce Media

9 Italy: Newspaper Circulation Trends Circulation, copies/000 per day National Newspapers -3.6% (1) % +36% Digital Jan-Mar 2013 Jan-Mar 2014 Sports Newspapers -9.3% % +13% Digital Jan-Mar 2013 MARKET Jan-Mar 2014 (1) Includes newspapers with circulation > 90,000 copies (Digital Copies included) 9 (2) Digital Editions included Source: ADS + Internal Estimates RCS (2)

10 Italy: Online Readership Million Users Workday Unique Browsers Monthly Unique Browsers 0,8 1,0 1,3 1,6 +17% 1,9 2,0 2,4 2,4 37,1-4.1% 35, Q2014 0,50 0,60 0,80 0,80 +13% 0,90 0,97 1,09 1,19 15,4-9.3% 13, Q Source: Nielsen Online SiteCensus- Adobe Sitecatalyst

11 Spain: Newspaper Circulation Trends Circulation, copies/000 per day Generalist Newspapers -9.6% (1) % % Digital Sports Newspapers % % % Digital Financial Newspapers 11 Sources: OJD -9.2% MARKET (1) Includes newspapers with circulation > 80,000 copies (2) Digital editions included % +26% RCS (2) Digital

12 Spain: Online Readership Million Users Daily Unique Browsers % % % 0.4 Monthly Unique Browsers -0.4% % % Source: Omniture (including apps)

13 Books : RCS vs Trade Market TOTAL MARKET (EUR million) -2.4% MARKET SHARE +1.2 pp 10.8% 12.0% TOTAL MARKET (Million of copies) -6.2% % +1.2 pp 10.9% 13 Source: GFK

14 Agenda Market Trends & Digital Business Q Results Business Units Focus 14

15 Q Results - Summary EUR million % Total Revenue 262, % 285, % (7,8%) Circulation 134,8 155,7 (1 3,4%) Advertising 101,1 108,0 (6,4%) Other 27,0 21,5 2 5,6% EBITD A ex NR Items (29,0) ( 11,0 %) (39,3) ( 13,8 %) ns Non Recurring Items (16,9) (75,5) EBITD A (45,9) ( 17,5%) (114,8) ( 4 0,3 %) ns EBIT (60,1) (133,9) Net Result (53,9) (107,1) NFP (520,8) (901,6) (1) 15 (1) Figures as of 31 March 2013 were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation. The Partworks Division were sold on August 1, On December 11, 2013 the equity investment in Editions d Art Albert Skira was sold and on March 1, 2014 the line of business La Tribuna was sold.

16 Q Results Profit & Loss EUR million (1) % Circulation 134,8 51,3% 155,7 54,6% (13,4%) Advertising 101,1 38,5% 108,0 37,9% (6,4%) Other 27,0 10,3% 21,5 7,5% 25,4% TOTAL REVENUE 262,9 100% 285,2 100% (7,8%) 16 Operating costs (ex non recurring costs) (202,4) (77,0%) (224,8) (78,8%) (10,0%) Labour costs (ex non recurring costs) (83,8) (31,9%) (93,9) (32,9%) (10,8%) Writedowns (4,1) (1,6%) (4,3) (1,5%) (5,4%) Provisions (1,6) (0,6%) (1,4) (0,5%) 12,0% EBITDA ex Non Recurring Items (29,0) (11,0%) (39,2) (13,8%) (26,1%) Non Recurring Items (16,9) (6,4%) (75,5) (26,5%) (77,7%) EBITDA (45,9) (17,5%) (114,8) (40,2%) (60,0%) D&A (14,2) (5,4%) (17,4) (6,1%) Impairment writeoffs 0,0 0,0% (1,8) (0,6%) EBIT (60,1) (22,9%) (133,9) (46,9%) Net financial incomes (charges) (10,2) (3,9%) (6,0) (2,1%) Gain (losses) on financial assets/liabilities 0,0 0,0% 0,2 0,1% Income (charges) from equity investments (3,5) (1,3%) (3,0) (1,1%) PRE-TAX RESULT (73,8) (28,1%) (142,7) (50,0%) Taxes 12,5 4,8% 33,9 11,9% Net Result from Discontinuing and Discontinued Op. 7,1 2,7% 1,7 0,6% Minorities 0,3 0,1% (0,0) (0,0%) NET RESULT (53,9) (20,5%) (107,1) (37,6%) (1) Figures as of 31 March 2013 were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation. The Partworks Division were sold on August 1, On December 11, 2013 the equity investment in Editions d Art Albert Skira was sold and on March 1, 2014 the line of business La Tribuna was sold.

17 (1) EBITDA evolution by quarter EUR million From Q3 2013, continuous YoY improvement Q1 Q2 Q3 Q4 Q1 (1) EBITDA before non recurring costs 17

18 Q Results - Revenue & EBITDA Breakdown EUR million 1Q2014 (1) 1Q2013 Revenue EBITDA Ex Non Recurring Items Ebitda ex NR % EBITDA Ebitda% Revenue EBITDA Ex Non Recurring Items Ebitda ex NR % EBITDA Ebitda% Media Italy 122,7 (0,6) (0,5%) (3,2) (2,6%) 135,0 (5,8) (4,3%) (65,2) (48,3%) Media Spain 79,7 (7,0) (8,8%) (20,6) (25,8%) 88,3 (10,2) (11,6%) (12,1) (13,7%) Books 26,3 (8,3) (31,4%) (8,7) (33,1%) 35,0 (11,4) (32,6%) (15,3) (43,7%) Advertising & Events 73,9 (4,6) (6,2%) (4,8) (6,5%) 74,1 (5,6) (7,6%) (10,4) (14,0%) Corporate Activities 17,1 (8,6) (50,3%) (8,6) (50,3%) 17,8 (6,3) (35,4%) (11,8) (66,3%) Others and eliminations (56,8) (65,0) TOTAL RCS LfL 262,9 (29,0) (11,0%) (45,9) (17,5%) 285,2 (39,3) (13,8%) (114,8) (40,3%) Assets held for sale or sold 20,6 3,0 3,0 Others and eliminations TOTAL RCS 262,9 (29,0) (11,0%) (45,9) (17,5%) 305,8 (36,3) (11,9%) (111,8) (36,6%) 18 (1) Figures as of 31 March 2013 were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation. The Partworks Division were sold on August 1, On December 11, 2013 the equity investment in Editions d Art Albert Skira was sold and on March 1, 2014 the line of business La Tribuna was sold.

19 2014 Efficiency program EUR million 14 million at March 2014 on high end of our guidance range 50/60 ~

20 Balance Sheet EUR million 31/03/ /12/2013 Net fixed assets 964,0 120,4% 962,2 118,9% Tangible & Intangible fixed assets 661,7 82,6% 666,8 82,4% Financial fixed assets 302,3 37,7% 295,4 36,5% Net working capital 93,6 11,7% 87,7 10,8% Reserve for risk and charges (205,6) (25,7%) (209,5) (25,9%) Employee termination indemnity (51,1) (6,4%) (51,3) (6,3%) Net invested capital: assets held for sale - 0,0% 20,1 2,5% (1) CAPITAL EMPLOYED 800,9 100,0% 809,2 100,0% Net financial debt (cash) 520,8 65,0% 474,3 58,6% Equity 280,1 35,0% 334,9 41,4% EQUITY & NFP 800,9 100,0% 809,2 100,0% 20 (1) Figures as of 31December 2013 were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of Consolidation.

21 Net Financial Position at the end of March 2014 EUR million NFP 31/12/13 Delta Perimeter (1) NFP 01/01/14 Acquisitions Disposals CAPEX Dividends Others (2) Operating Cash Flows NFP 31/03/ NFP 31/12/12 NFP 01/01/13 NFP 31/03/ (1) Figures were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation (2) Includes non recurring items 21 Cash flow representation as of management reporting

22 Agenda Market Trends & Digital Business Q Results Business Units Focus 22

23 Media Italy P&L EUR million YoY Circulation 69,6 73,9 (5,8%) Advertising 47,5 55,8 (14,9%) Other 5,6 5,3 5,7% advertising on-line 24.2% TOTAL REVENUE 122,7 135,0 (9,1%) O/W add on 17,9 16,8 EBITDA ex NR Items (0,6) (5,8) ns Non Recurring Items (2,6) (59,4) EBITDA (3,2) (65,2) ns 23

24 Media Spain P&L EUR million YoY Circulation 39,8 48,5 (17,9%) Advertising 30,9 32,4 (4,6%) Other 9,0 7,4 21,6% advertising on-line 25.3% TOTAL REVENUE 79,7 88,3 (9,7%) O/W add on 0,9 4,4 EBITDA ex NR Items (7,0) (10,2) ns Non Recurring Items (13,6) (1,9) EBITDA (20,6) (12,1) ns 24

25 Books P&L EUR million (1) YoY Fiction & non-fic. Italy 19,4 22,6 (14,2%) Education 2,7 3,7 (27,0%) Rizzoli International 4,2 4,0 5,0% Other 0,0 4,7 ns TOTAL REVENUE 26,3 35,0 (24,9%) EBITDA ex NR Items (8,3) (11,4) ns Non Recurring Items (0,4) (3,9) EBITDA (8,7) (15,3) ns 25 (1) The Partworks Division were sold on August 1, On December 11, 2013 the equity investment in Editions d Art Albert Skira was sold and on March 1, 2014 the line of business La Tribuna was sold.

26 Advertising & Events P&L EUR million YoY Advertising and Events 62,6 67,5 (7,3%) O/W RCS publishing 53,8 62,2 3rd party publishers 8,0 1,7 Sport Events 11,3 6,6 71,2% TOTAL REVENUE 73,9 74,1 (0,3%) EBITDA ex NR Items (4,6) (5,6) ns Non Recurring Items (0,2) (4,8) EBITDA (4,8) (10,4) ns 26

27 Q&A Session - Q Results Milano, May 14th

28 Disclaimer Investor Relations Department Federica De Medici Forward-looking Statements 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. Roberto Bonalumi, the Manager responsible for drawing up the company s accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the Testo Unico della Finanza (Legislative Decree n. 58/1998), that the information contained in this presentation corresponds to those one contained in the group s documents and books accounting records Federica.demedici@rcs.it