RCS MediaGroup First Half Results. J.P. Morgan Italian Conference Milano, September 29, 2014

Transcription

1 RCS MediaGroup 2014 First Half Results J.P. Morgan Italian Conference Milano, September 29, 2014

2 Agenda Highlights Market & Business Trends 2014 First Half Results Business Units Focus 2

3 1H 2014 Delivery Report Efficiencies 1H ahead of Plan New FY14 target up to 70M+ Balance Sheet 47m boost from saving shares conversion Improved terms for bank financing Digital 13% of total revenues Digital Subscriptions double-digit growth for all brands (Corriere +34%) Advertising & Events Top line growth ahead of market Market share gains Books Continued market share gains 3

4 1H 2014 Results on track EUR million REVENUE 1H vs. Targets Slightly below EFFICIENCIES 31.1 Ahead of target EBITDA ex non recurring items (4.2) In line Non recurring items (25.0) In line NFP (518.2) In line 4

5 Focus on Q2&Q initiatives MEDIA ITALY Special editions of Corriere & Gazzetta Gazzetta Gold app Gazzabet Gaming Platform New Tabloid Format Corriere MEDIA SPAIN El Club Fidelity Program El Mundo native tablet app Launch of Marca in Chile ADV & EVENTS Gold5 video display ads consortium Giro d Italia Tempo delle Donne Platform RCS Live Events Agency BOOKS Innovative concepts for online & in-store retail spaces Textbook adoption campaign confirms market position MyStudio platform 5

6 1H Digital revenue % of revenue % increase 1H2014/1H2013 RCS GROUP 13.0% +8.8% vs 2013 (1) ITALY 14.5% +5.0% vs 2013 BOOKS 2.8% +59.5% vs 2013 SPAIN 14.5% +14.3% vs 2013 (1) Italy excluding books 6

7 Agenda Highlights Market & Business Trends 2014 First Half Results Business Units Focus 7

8 Italy: Advertising Trends Advertising Gross Revenue, EUR million % (%) Market -3.9% Online (1) - 2.1% Outdoor +3.5% Radio - 0.3% Magazines -11.6% Newspapers -12.8% National -15.9% Local -12.4% (%) / +2.2% -6.6% -4.7% -1.8% -13.8% (%) 2Q14/2Q % -4.9% +4.2% TV -0.7% Jan-May 2013 TOTAL MARKET 193 Jan-May 2014 (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 Other (2) -8.5% RCS (3)

9 Spain: Advertising Trends Advertising Gross Revenue, EUR million 1,8% (%) (%) / (%) 2Q14/2Q Market +1.8% Cinema +23.6% Outdoor +1.6% Online +3.8% +7.5% +16.0% Radio +1.9% -7.2% +16.9% Magazines -4.6% -6.6% -9.1% Newspapers -5.5% -4.7% -3.6% TV +4.8% TOTAL MARKET RCS 9 Source: Arce Media

10 Italy: Newspaper Circulation Trends Circulation, copies/000 per day MARKET RCS National Newspapers (1) -3.5% CdS -3.7% % +34% Digital Jan-May 2013 Jan-May 2014 Sports Newspapers % 421 GdS -7.2% -2.2% % Digital Jan-May 2013 Jan-May (1) Includes newspapers with circulation > 90,000 copies Source: ADS + Internal Estimates (digital copies included)

11 Italy: Online Readership Workday Unique Browsers Million Users Monthly Unique Browsers % % H % % H Source: Nielsen Online SiteCensus- Adobe Sitecatalyst

12 Spain: Newspapers Circulation Trends Circulation, copies/000 per day MARKET RCS (2) Generalist Newspapers (1) -9.3% % +12.7% Digital Sports Newspapers % % % Digital Financial Newspapers % % +25.4% Digital 12 Sources: OJD (1) Includes newspapers with circulation > 80,000 copies (2) Digital editions included (2)

13 Spain: Online Readership Million Users Weekly Unique Browsers 2,2-0.2% 2, % 3,6 4, % 0,3 0,4 Monthly Unique Browsers +1.9% 31,6 32,2 35,9 +5.2% 37,7 5, % 6,1 13 Source: Omniture

14 Books: RCS vs Market TOTAL MARKET (EUR million) % RCS MARKET SHARE +1.3 pp 10.2% 11.5% TOTAL MARKET (Millions of copies) % % +1.2 pp 10.5% 14 Source: GFK

15 Agenda Highlights Market & Business Trends 2014 First Half Results Business Units Focus 15

16 1H 2014 Results - Summary EUR million (1) 2Q14 2Q13 % % Total Revenue % % (3.9%) % % (5.6%) Circulation (1 2.1%) (1 2.7%) Advertising % (0.2%) Other % % EBITD A ex NR Items % % >100% (4.2) ( 0.7%) (28.6) ( 4.4 %) ns Non Recurring Items (8.1) (0.8) (25.0) (76.2) EBITD A % % 67.0% (29.2) ( 4.8 %) (104.8) ( 16.2 %) ns EBIT (5.1) (8.9) ( 2.5%) (65.1) (142.8) Net Result (16.1) ( 4.6 %) (18.3) ( 5.1%) (70.0) (125.4) NFP (518.2) (955.5) (1) (1) Q2 and 1H 2013 figures 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

17 1H 2014 Results Profit & Loss EUR million (1) (1) 2Q14 2Q13 % Circulation % % % % (12.7%) Advertising % % % % (0.2%) Other % % % % 9.2% TOTAL REVEN U E % % % % (5. 6%) Operating costs (ex non recurring costs) (241.7) (69.4%) (257.9) (71.2%) (444.2) (72.7%) (482.8) (74.6%) (8.0%) Labour costs (ex non recurring costs) (78.0) (22.4%) (87.1) (24.0%) (161.8) (26.5%) (181.0) (28.0%) (10.6%) Writedowns (2.9) (0.8%) (5.0) (1.4%) (7.0) (1.1%) (9.3) (1.4%) (24.7%) Provisions (0.8) (0.2%) (1.5) (0.4%) (2.4) (0.4%) (3.0) (0.5%) (20.0%) EBITDA ex Non Recurring Items % % (4.2) (0.7%) (28.6) (13.8%) (85.3%) Non Recurring Items (8.1) (2.3%) (0.8) (0.2%) (25.0) (4.1%) (76.2) (11.8%) (67.2%) EBITDA % % (29.2) (4. 8%) (104.8) (40. 2%) (72. 1%) D&A (14.9) (4.3%) (18.0) (5.0%) (29.0) (4.7%) (35.4) (5.5%) Impairment writeoffs (6.9) (2.0%) (0.9) (0.2%) (6.9) (1.1%) (2.6) (0.4%) EBIT (5.1) (1.5%) (8.9) (2.5%) (65.1) (10.7%) (142.8) (22.1%) Net financial incomes (charges) (10.6) (3.0%) (5.9) (1.6%) (20.9) (3.4%) (11.8) (1.8%) Gain (losses) on financial assets/liabilities % % % % Income (charges) from equity investments (1.9) (0.5%) (0.8) (0.2%) (5.4) (0.9%) (3.8) (0.6%) PRE-TAX RESU LT (17.6) (5. 1%) (15.5) (4. 3%) (91.4) (15. 0%) (158.2) (24. 4%) Taxes % % % % Net Result from Discontinuing and Discontinued Op % (5.9) (1.6%) % (4.1) (0.6%) Minorities % (0.7) (0.2%) % (0.7) (0.1%) NET RESULT (16.1) (4.6%) (18.3) (5.1%) (70.0) (11.5%) (125.4) (19.4%) 17 (1) Q2 and 1H 2013 figures 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.

18 (1) EBITDA evolution by quarter EUR million From Q3 2013, continuous YoY improvement Q1 Q2 Q3 Q4 Q1 Q2 18 (1) EBITDA before non recurring costs 2013 figures were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation.

19 Q2 and 1H 2014 Results Breakdown Revenue & Ebitda EUR million Revenue EBITDA Ex Non Recurring Items Q Q Ebitda ex NR % EBITDA Ebitda% Revenue EBITDA Ex Non Recurring Items Ebitda ex NR % EBITDA Ebitda% Media Italy % % % % Media Spain % % % % Books 45.7 (1.7) (3.7%) (2.3) (5.0%) 55.4 (1.5) (2.7%) (3.3) (6.0%) Advertising & Events % % % % Corporate Activities 20.7 (5.8) (28.0%) (5.8) (28.0%) 20.9 (4.5) (21.5%) (5.2) (24.9%) Others and eliminations (73.1) (75.1) (0.2) 0.3% (0.2) 0.3% TOTAL RCS LfL % % % % Assets held for sale or sold Others and eliminations TOTAL RCS % % % % (1) H H (1) Revenue EBITDA Ex Non Recurring Items Ebitda ex NR % EBITDA Ebitda% Revenue EBITDA Ex Non Recurring Items Ebitda ex NR % EBITDA Ebitda% Media Italy % % (1.8) (0.6%) (59.0) (20.9%) Media Spain % (16.6) (9.4%) (0.6) (0.3%) (2.4) (1.2%) Books 72.1 (9.9) (31.4%) (11.0) (15.3%) 90.4 (12.9) (14.3%) (18.6) (20.6%) Advertising & Events % % (2.3) (1.3%) (7.6) (4.2%) Corporate Activities 37.8 (14.4) (38.1%) (14.4) (38.1%) 38.6 (11.0) (28.5%) (17.2) (44.6%) Others and eliminations (129.9) (140.0) TOTAL RCS LfL (4.2) (0.7%) (29.2) (4.8%) (28.6) (4.4%) (104.8) (16.2%) Assets held for sale or sold Others and eliminations TOTAL RCS (4.2) (0.7%) (29.2) (4.8%) (28.6) (4.2%) (99.6) (14.5%) 19 (1) Q2 and 1H 2013 figures 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.

20 2014 Efficiency program EUR million Above target: 31M at June 2014 FY guidance from 50/60M to 70M+ ~40 ~ Spain 43 Italy H Months ending June 30 2H 2014E E 20

21 Balance Sheet EUR million 30/06/ /12/2013 Net fixed assets % % Tangible & Intangible fixed assets % % Financial fixed assets % % Net working capital % % Reserve for risk and charges (194.9) (23.5%) (209.5) (25.9%) Employee termination indemnity (52.2) (6.3%) (51.3) (6.3%) Net invested capital: assets held for sale - 0.0% % (1) CAPITAL EMPLOYED % % Net financial debt (cash) % % Equity % % EQUITY & NFP % % 21 (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.

22 Net Financial Position at the end of June 2014 EUR million (1) NFP 31/12/12 NFP 01/01/13 NFP 30/06/ CASH FLOW OPERATING CASH FLOW NFP 31/12/13 2 Delta Perimeter -474 (1) NFP 01/01/14 66 (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 Cash flow representation as of management reporting Disposals and Saving Shares Conv, -5 Acquisitions -21 CAPEX 0 Dividends -30 (2) Others -54 Operating Cash Flow -518 NFP 30/06/14

23 Medium-term bank loan contract amendments Spread reduction over the 3 lines of credit as follows: Line A: bps from 425 bps to bps Line B: bps from 435 bps to bps Line C (revolving): -25 bps from 400 bps to 375 bps Deferral of non-core assets deadline disposal from Dec 31, 2014 until Sep 30, 2015 (for the remaining around 100M) Dec 31, 2014 covenant: maximum NFP from 470M to 530M More flexibility in medium-term funding sources to also include debt instruments other than bank loans up to 200M (from 100M) Voluntary repayment in-advance of credit line B for 23M (around 50% of saving shares conversion proceeds) 23

24 Outlook FY 2014 Targets Update REVENUE vs 2013 Slight increase Flat EFFICIENCIES /60M 70M+ EBITDA (1) vs x 3x 2014 total non-recurring costs (2) 40M 40M NFP vs YE 2013 Further reduction Further reduction with extended window for disposals granted by new covenant 24 (1) EBITDA excluding non-recurring items (2) 2014 P&L expected impact

25 Agenda Highlights Market & Business Trends 2014 First Half Results Business Units Focus 25

26 Media Italy P&L EUR million 2Q14 2Q13 YoY YoY Circulation (9.6%) (7.7%) Advertising (2.6%) (8.3%) Other (3.4%) % advertising on-line 22.0% TOTAL REVENUE (6.3%) (7.6%) O/W add on EBITDA ex NR Items >100% 14.8 (1.8) >100% Non Recurring Items (0.2) 2.2 (2.8) (57.2) EBITDA >100% 12.0 (59.0) >100% 26

27 Media Spain P&L EUR million 2Q14 2Q13 YoY YoY Circulation (9.1%) (13.6%) Advertising (3.9%) (4.2%) Other (23.0%) (8.1%) advertising on-line 25.4% TOTAL REVENUE (8.8%) (9.2%) O/W add on EBITDA ex NR Items % 4.1 (0.6) ns Non Recurring Items (7.1) 0.0 (20.7) (1.8) EBITDA ns (16.6) (2.4) ns 27

28 Books P&L EUR million (1) 2Q14 2Q13 YoY YoY (1) Fiction & non-fic. Italy (16.8%) (15.7%) Education (5.4%) (9.3%) Rizzoli International (11.1%) (5.3%) Other ns ns TOTAL REVENUE (17.1%) (20.2%) EBITDA ex NR Items (1.7) (1.5) ns (9.9) (12.9) ns Non Recurring Items (0.6) (1.8) (1.1) (5.7) EBITDA (2.3) (3.3) ns (11.0) (18.6) ns 28 (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.

29 Advertising & Events P&L EUR million 2Q14 2Q13 YoY YoY Advertising and Events % % O/W RCS publishing rd party publishers Sport Events % % TOTAL REVENUE % % EBITDA ex NR Items ns 1.2 (2.3) ns Non Recurring Items (0.2) (0.5) (0.4) (5.3) EBITDA ns 0.8 (7.6) ns 29

30 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. 30