2007 Interim Results 18 th September 2007 Chief Operating Officer Gavin O Reilly Chief Financial Officer Donal Buggy

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1 2007 Interim Results 18 th September 2007 Chief Operating Officer Gavin O Reilly Chief Financial Officer Donal Buggy Australia India Indonesia Ireland Hong Kong Malaysia New Zealand South Africa United Kingdom

2 2007 INTERIM RESULTS HIGHLIGHTS Net profit* + 9.7% reflecting INM s diversified growth & rigorous cost management strategy Good revenue growth of + 4.2% in constant currency (+ 2.4% in Euro terms) Performance significantly better than peers and driven by strong underlying advertising (+ 6.3%) and circulation (+ 2.5%) revenue growth in the Publishing division Operating profit* + 4.5% (+ 6.1% in constant currency) with all divisions showing growth Industry-leading operating margin strengthens by 40 bps to 19.0% 8.1% Adjusted EPS growth to a record 8.03 cent * before exceptionals Slide 1

3 2007 INTERIM RESULTS HIGHLIGHTS Further business restructuring initiatives being implemented across the Group in 2007 to deliver sustainable payroll and other savings and enhanced work flows Continued rapid expansion of online in tandem with print, with market share gains in Publishing across all markets Continued expansion of business base in India in print, radio and outdoor Investment in Independent College in Ireland a new education initiative, that will be launched in H Interim dividend increased % to 4.57 cent per share Slide 2

4 INM GLOBAL REACH & GROWTH STRATEGY DELIVERING A WEEKLY AUDIENCE OF > 100 MILLION CONSUMERS > 180 NEWSPAPERS & MAGAZINES Australia, India, Ireland, New Zealand, S. Africa, U.K. > 100 ONLINE SITES Australia, India, Ireland, New Zealand, S. Africa, U.K. > 75,000 OUTDOOR PANELS Africa, Australia, Hong Kong, India, Indonesia, Malaysia, New Zealand, S. Africa > 130 RADIO STATIONS Australia, India, New Zealand DELIVERING SUSTAINABLE GROWTH Revenue Split by Business Segment * 12% 13% 7% 3% Publishing Radio Print/ Distribution Online Outdoor 65% * including 100% of Associates/ JVs GEOGRAPHIC DIVERSITY LOW COST OPERATOR INNOVATION MULTI-MEDIA/ PLATFORM FOUR PILLARS OF GROWTH Slide 3

5 GEOGRAPHIC SEGMENTS GROUP GROUP (to 30th June) REVENUES EBIT (pre-exceptionals) million % % Australasia % % Ireland % % South Africa % % United Kingdom % % Sub-Total % % Less Common Costs (6.7) (6.4) -4.7% After Common Costs % Associate & JV Profits % TOTAL % Group Revenue + 2.4% (+ 4.2% in Constant Currency) Total Group EBIT + 4.5% (+ 6.1% in Constant Currency) All regions delivering improved core profitability Strong performance from Associates & JVs Slide 4

6 GEOGRAPHIC SEGMENTS AUSTRALASIA & IRELAND AUSTRALASIA (to 30th June) million % Cfx % Revenues % -1.5% Operating Profit % 0.5% Margin (%) 23.3% 22.7% 55 bps APN achieved record Operating Profit of 85.1m, up 2.3%, or + 0.5% in constant currency ( Cfx ) Strong cost management lifted margin by 55 bps Overall performance was driven by good growth in the Australian Regional Newspaper and Outdoor divisions APN continues to invest heavily in its Online division with good effect IRELAND (to 30th June) million % Cfx % Revenues % -1.4% Operating Profit % 4.7% Margin (%) 24.7% 23.2% 144 bps Ireland grew Operating Profit to a record 48.9m, despite a slight contraction in revenues (due to the loss of a number of low margin distribution contracts) 2007 Operating Profit includes the full cost (c. 1m) of herald am; in exceptionals in Like-for-like Operating Profit up 7.0% Active cost control expanded margins to 24.7% (up 144 bps) Publishing drove the performance with strong gains in advertising far exceeding the market and good circulation and readership figures Slide 5

7 GEOGRAPHIC SEGMENTS SOUTH AFRICA & UK SOUTH AFRICA (to 30th June) million % Cfx % Revenues % 14.6% Operating Profit % 30.2% Margin (%) 17.1% 15.0% 207 bps Despite the economic impact of a series of local interest rates hikes (up 300 bps since June 2006), South Africa reported a record Operating Profit of 20.0m (after adverse currency movements) In constant currency, Operating Profit grew by 30.2% on the back of a 14.6% increase in revenues Strong cost management lifted margins by 207 bps Contrary to competitors, INM s operations recorded good revenue growth and market share gains UNITED KINGDOM (to 30th June) million % Cfx % Revenues % 22.6% Operating Profit % 16.7% Margin (%) 5.4% 5.7% -24 bps Revenues grew by 22.6% in constant currency including revenues from WNS distribution division acquired during 2006 Excluding WNS, like-for-like revenue growth was up 2.3%, which was attributable to good advertising growth Operating Profit grew by 16.7% in constant currency Online revenues continue to grow significantly, particularly in London Northern Ireland print facilities (Belfast & Newry) delivering efficiencies for island of Ireland titles Slide 6

8 BUSINESS SEGMENTS PUBLISHING & ONLINE PUBLISHING & ONLINE (to 30th June) million % Cfx % Advertising % 6.3% Circulation % 2.5% Print/ Distribution % 5.1% Total Revenue % 5.1% Operating Profit % 6.1% Margin (%) 20.0% 19.7% 24 bps Total Publishing & Online Revenue +5.1% in Constant Currency (+2.8% in Euro) Operating Margin expanded by 24 bps to 20.0% (which includes low margin wholesale/ distribution businesses) Advertising grew by 6.3% in Constant Currency (Advertising represents 57.3% of Publishing/ Online Revenues) PUBLISHING & ONLINE (to 30th June) YoY Growth (Cfx) Australasia Ireland South Africa United Kingdom Total: Rate Volume Advertising 4.1% 10.1% 7.8% 7.1% * 6.3% 3.4% 2.9% * includes PropertyNews.com, acquired during 2006 Circulation 0.3% 0.7% 10.8% -3.9% 2.5% 2.9% -0.4% All markets increased Advertising Revenues Aggregate advertising revenues +6.3% o volume + 2.9%; rate + 3.4% Strong readership levels across Group titles Aggregate Circulation Revenue +2.5%, reflecting cover price increases: o volume - 0.4%; rate +2.9% Slide 7

9 CONTINUOUS INNOVATION Ongoing new product development, constant innovation and aggressive marketing Increased use of gloss colour New language/ vernacular titles Reverse Publishing AUSTRALASIA IRELAND SOUTH AFRICA UNITED KINGDOM Slide 8

10 ONLINE OPERATIONS ONLINE (to 30th June) million % Cfx % Total Revenue % 38.7% Average monthly stats: Page Impressions (m) % Unique Users (m) % Strong growth in main editorial portal sites and verticals in terms of page impressions, unique users and revenues Total Online Revenues +34.4% (+38.7% in Constant Currency) Online investments, in Cashcade and Verivox (not included in these figures), performing to or ahead of plan and profitable Investment phase continues as new products are launched and new opportunities are assessed in Search, Social Networking, Travel and Price Comparator Online was marginally loss-making in H due to continuing investment in online brands (both editorial and classified verticals) Slide 9

11 ONLINE OPERATIONS AUSTRALASIA IRELAND S. AFRICA U.K. OTHER EDITORIAL CLASSIFIED VERTICALS JOBS HOMES GENERAL DIRECTORIES CARS TRANSACTION/ OTHER Cars.ie Price Comparator Dating Travel Local Search Social Networking Gaming Slide 10

12 BUSINESS SEGMENTS RADIO & OUTDOOR RADIO (to 30th June) million % Cfx % Total Revenue % 0.1% Australasia s largest Radio operator with almost 6 million listeners per week produced a 2.3% increase in Operating Profit to 22.2m Operating Profit % 0.5% Margin (%) 30.9% 30.8% 14 bps OUTDOOR (to 30th June) million % Cfx % Total Revenue % -0.1% Group Operating Profit % 46.9% Share of Ass. & JVs % 10.8% Total Outdoor Contribution % 21.7% Australasia s largest Outdoor operator across all formats increased Operating Profit by %, following new contract wins and strong performances from its Asian outdoor division Revenue marginally down due to inventory rationalisation in posters business Slide 11

INDIA INDIA (April to June 2007) INR million 2007 2006 % Total Revenue 1,922.7 1,427.5 34.7% Operating Costs (1,389.5) (1,074.0) (29.4%) Operating Profit 533.2 353.5 50.8% Operating Profit ( m) 9.6 6.

8% of JPL, publisher of Dainik Jagran, India s largest selling daily newspaper During its Q1, JPL enjoyed very strong revenue (+34.7%) and profit performance (+50.

13 INDIA INDIA (April to June 2007) INR million % Total Revenue 1, , % Operating Costs (1,389.5) (1,074.0) (29.4%) Operating Profit % Operating Profit ( m) % Margin (%) 27.7% 24.7% 297 bps Advertising Growth: 42.1% INM owns 20.8% of JPL, publisher of Dainik Jagran, India s largest selling daily newspaper During its Q1, JPL enjoyed very strong revenue (+34.7%) and profit performance (+50.8%), on the back of continued strength in advertising, which was up +42.1% JPL continues to diversify its business base with revenues from non-publishing units (outdoor/ events, etc.) now representing 6.3% of total revenues in Q1, up from 3.0% in the previous year Continued roll-out of Cityplus and i-next brands, which complement Dainik Jagran JPL is listed on the Mumbai Stock Exchange (JAGP.BO) and at its current share price represents a 330% appreciation since our original investment in 2005 (July) Ongoing rollout of separate JV FM radio network Radio Mantra, with seven of planned eight stations now launched in Northern India Slide 12

STRATEGIC EXPANSION EDUCATION As part of INM s diversification strategy, INM has entered the education market This is a fast-growing sector and our initial strategic investment is Independent College

14 STRATEGIC EXPANSION EDUCATION As part of INM s diversification strategy, INM has entered the education market This is a fast-growing sector and our initial strategic investment is Independent College (Dublin) Builds on INM s existing educational platforms editorial and online Creates a learning experience that is complementary to our media business and portfolio of assets Already assembled a team of exceptional lecturers to staff the core faculties of Law, Accountancy, Journalism, Arts and Continuous Professional Development, with enrolments for courses commencing now Concept is scaleable across each of INM s markets, and will benefit from cross-promotion with the Group s leading titles, radio stations and outdoor sites Slide 13

15 BUSINESS RE-ENGINEERING Slide 14

16 STRATEGY BUSINESS RE-ENGINEERING INM has been fundamentally re-defining and re- engineering its business model over the past number of years: o How we view and compile our editorial products to better meet the ever-changing demands of the o consumer How we interact with our customers (in advertising; Advertising Prepress Multi-Media Approach in distribution and supply management; in finance etc.) Financial Shared Services Enhanced Production o How we manage and direct our sales resources o How we increase our share of advertising revenue and market share, whilst broadening our client base Online Customer Facing o o How we leverage the Group s global scale in procurement, IT and common platforms How we prioritise investment in marketing and Grp. Procurement Distribution Editorial Prepress innovation The focus is on improved client service, sustainable revenue growth, yield growth, scale efficiencies and product enhancements Slide 15

STRATEGY BUSINESS RE-ENGINEERING Centralised Ad Production: Multi-Media Approach: Armagh Brisbane Johannesburg Common Groupwide Atex Platform Financial Shared Services: Press Centre Upgrades:

17 STRATEGY BUSINESS RE-ENGINEERING Centralised Ad Production: Multi-Media Approach: Armagh Brisbane Johannesburg Common Groupwide Atex Platform Financial Shared Services: Press Centre Upgrades: Clonakilty Johannesburg Whangarei Advertising Prepress Multi-Media Approach Belfast Newry Yandina Regional Australia Online: Specialist management Investment phase Financial Shared Services Online Grp. Procurement Distribution Enhanced Production Editorial Prepress Customer Facing Customer Contact Centres: Armagh Brisbane Clonakilty Johannesburg Tauranga Grp. Procurement: Newsprint, Ink, Plates, IT Systems, Licenses, Telecoms, Insurance etc. Distribution: Newspread WNS Sub-Editing Insourced/ Outsourced: Auckland Castres Dublin Johannesburg Slide 16

CENTRALISED OPERATIONS EDITORIAL PRODUCTION Common Group-wide

Editorial Production Centres in Auckland, Belfast, Castres

majority of editorial sub-editing and design Journalists

production Improved workflows and page sharing across the

18 CENTRALISED OPERATIONS EDITORIAL PRODUCTION Common Group-wide Atex Editorial System in all centres, facilitates centralised Editorial Production Centres in Auckland, Belfast, Castres (France), Dublin, London, and Johannesburg Outsource the majority of editorial sub-editing and design Journalists focused on content creation/ origination, rather than page production Improved workflows and page sharing across the Group in real-time Auckland, New Zealand Dublin, Ireland Castres, France Slide 17

CENTRALISED OPERATIONS LOW COST OPERATOR Purpose-built Customer Contact Centres in

market penetration and broaden customer base Brisbane, Australia Tauranga, New Zealand

Johannesburg Centralised and standardised approach to pre-press advertising makeup New

in regional Australia (Bundaberg, Rockhampton, Toowoomba and Ballina) Full colour with

19 CENTRALISED OPERATIONS LOW COST OPERATOR Purpose-built Customer Contact Centres in Armagh, Brisbane, Clonakilty, Johannesburg and Tauranga Out-bound sales focus to increase market penetration and broaden customer base Brisbane, Australia Tauranga, New Zealand Brisbane, Australia Purpose-built Advertising Pre-Press Centres in Armagh, Brisbane, and Johannesburg Centralised and standardised approach to pre-press advertising makeup New major Full-Colour Production Facilities in Yandina and Newry, and single-width installs in regional Australia (Bundaberg, Rockhampton, Toowoomba and Ballina) Full colour with gloss/ magazine capabilities at significantly lower unit cost Slide 18 Yandina, Sunshine Coast, Australia

CENTRALISED OPERATIONS LOW COST OPERATOR Shared Financial Services Centres in Clonakilty, Johannesburg and Whangerei Streamlined approach to all aspects of Group financial administration FINANCIAL

20 CENTRALISED OPERATIONS LOW COST OPERATOR Shared Financial Services Centres in Clonakilty, Johannesburg and Whangerei Streamlined approach to all aspects of Group financial administration FINANCIAL IMPACT OF HEADCOUNT RESTRUCTURING From , permanent headcount reductions total 1,411 (12.8%) Reductions occurred across all functional areas - via efficiencies and outsourced functions in ad services, editorial production, customer contact centres and press centre upgrades Accounts receivable, payroll, payables, cash management, general ledger and reporting, producing improved service and efficiency Clonakilty, Ireland In the absence of these reductions, payroll costs (excluding acquisitions and Online) would have grown by c. 20% over the period whereas, payroll has only increased by c. 9% since 2002 Total restructuring charge in H1 07 was 29.0m The full cost of this restructuring programme in 2007 is expected to be c. 45.0m, delivering a payback of between years To date, over 450 of the 579 forecasted headcount reductions in 2007 have been achieved and the remainder will be completed before the year-end Headcount Movements ( ) 11,250 11,055 11,018 11,000 10,750 10,500 10,250 10,000 9,750 9,500 9,250 9,000 10,479 10,249 9, Slide 19

21 H Financial Review Chief Financial Officer Donal Buggy Slide 20

22 INM CONSISTENT GROWTH TREND REVENUE (in m) OPERATING PROFIT (before exceptionals) (in m) ADJUSTED EPS * (in cent) DPS (in cent) OPERATING MARGIN (%) % % 18.6% 19.0% '04 '05 '06 '07 '04 '05 '06 '07 '04 '05 '06 '07 '04 '05 '06 '07 '04 '05 '06 '07 * Diluted EPS before exceptionals Slide 21

23 INCOME STATEMENT 2007 Interim Results - Income Statement million % Revenue % EBITDA % Operating Profit % Net Exceptional Items (27.6) (5.5) % Share of Results of Associates and Joint Ventures % Net Interest Charge (39.8) (40.1) 0.7% Profit Before Tax % Profit before Tax excluding Exceptionals % Taxation (17.9) (21.3) 16.0% Profit After Tax % Profit after Tax excluding Exceptionals % Minority Interests (38.2) (35.2) -8.5% Net Profit % Net Profit excluding Exceptionals % Operating Margin (%) 19.0% 18.6% 40bps Revenue grew by 2.4% to a record 815.5m, led by a strong performance in Publishing In constant currency, Revenue increased by 4.2%, with notably strong performances from the UK and South Africa Group EBITDA grew by 3.5% to 172.2m Net Exceptional Items at 27.6m reflect major business re-engineering initiatives Tax down due mainly to tax credit on exceptional charges. Effective rate (excl. exceptionals) of 18.0% Excluding Exceptionals, Profit After Tax grew to a record 99.8m, up + 8.8% Net Profit excluding Exceptionals advanced by 9.7% to a record 62.0m Group Operating Margin grew by 40 bps to 19.0% Slide 22

24 SUMMARY CASH FLOW 2007 Interim Results - Summary Cash Flow million Change OPERATING CASH FLOW (before working capital & restructuring payments) Working Capital/Provision Movements (21.3) (4.4) (16.9) Restructuring Payments (20.5) (10.0) (10.5) OPERATING CASH FLOW (24.0) Interest (43.4) (43.4) - Taxation (26.0) (26.6) 0.6 Minority Interest Dividends (44.4) (29.0) (15.4) Capital Expenditure (36.6) (30.7) (5.9) Equity Dividends (39.2) (46.2) 7.0 Net Disposals/Investments (7.1) (11.0) 3.9 Other NET CASH FLOW (before non-routine items) (64.8) (32.4) (32.4) FX Movements (25.4) 35.2 (60.6) Acquisition of Minority Interest in Toowoomba (55.9) - (55.9) INM/APN Share Buybacks (51.6) (50.2) (1.4) NET DEBT MOVEMENT (in 6 months) (197.7) (47.4) (150.3) Operating Cash Flow (before working capital and once-off restructuring payments) grew by 2.1% to 162.5m Working Capital increase due mainly to timing of cash flows in APN Capital Expenditure totalled 36.6m, reflecting spend on 2 major print centres in Newry and Yandina INM Share Buybacks designed to avoid any equity dilution on the maturity of NZ CEPS which mature in November 2007 Increased Minority Interest Dividends reflect increased APN dividend due to delay in final dividend (due to APN Scheme of Arrangement) Slide 23

25 SUMMARY BALANCE SHEET 2007 Interim Results - Summary Balance Sheet million 30-Jun Dec-06 Change Intangible Assets * 2, , Property, Plant & Equipment Other Net Assets/ Liabilities ** Retirement Benefit Obligations (87.9) (126.9) 39.0 Compound Financial Instruments (128.4) (208.7) 80.3 Net Debt (1,238.9) (1,041.2) (197.7) Total Net Assets 2, , * Including internally generated mastheads and revaluations - independently revalued at ** Excludes deferred tax on intangibles 2007 Interim Results - Financial Ratios 30-Jun Jun-06 Total Net Assets grew by 123.8m Intangible Assets up mainly due to the purchase of Toowoomba and FX Reduced Pension Deficit mainly due to increased bond yields Reduction in Compound Financial Instruments reflects conversion of APN convertible notes Net Debt grew by 197.7m reflecting:- o o o o o INM Share Buy-Back Purchase of Toowoomba Capital additions/ expenditure Once-off Restructuring Payments Adverse Currency translation Total Net Debt*/ EBITDA EBITDA/ Interest * Total Net Debt*/ EBITDA of 3.32 times, within the Group s targeted range * Excludes Compound Financial Instruments Interest cover remains strong Slide 24

26 SHAREHOLDER STATISTICS EPS/ DPS TREND ( 04 07) CAPITAL MANAGEMENT H1 EPS * 8.1% EPS* growth to a record 8.03 cent 10.1% DPS growth to a record 4.57 cent * Diluted EPS before exceptionals H1 DPS Share in Issue (at 30th June) millions of shares % Average fully diluted shares for EPS calculations % As of Friday, September 14th 2007: Shares in Issue (net of Treasury Shares): 744.5m Treasury Shares: 32.4m As part of INM s efficient capital management policy, the Company has repurchased 32.4m Treasury Shares to date in 2007 The objective of these share buy-backs is to minimise the potential dilutive impact for all shareholders which will arise on the maturity of the New Zealand Cumulative Exchangeable Preference Shares, if as expected, they convert into INM shares (c. 56m) in late November 2007 Slide 25

INM OUTLOOK AUSTRALASIA Multi-media strategy Regional strength continuing Yandina fully

SOUTH AFRICA Broad-based economic growth Building on market share gains Expanding new

Re-engineering IRELAND Broad-based economic growth Strong advertising gains and

KINGDOM Momentum for UK cover prices Advertising confidence building Belfast/ Newry

Strong economic growth NPD extensions Outdoor growing portfolio diversification Radio

27 INM OUTLOOK AUSTRALASIA Multi-media strategy Regional strength continuing Yandina fully operational Portfolio diversification Outdoor: new contract wins Business Re-engineering SOUTH AFRICA Broad-based economic growth Building on market share gains Expanding new middle-class Political stability & Momentum building to FIFA World Cup 2010 Business Re-engineering IRELAND Broad-based economic growth Strong advertising gains and increased market share Proactive product development Business Re-engineering UNITED KINGDOM Momentum for UK cover prices Advertising confidence building Belfast/ Newry Print fully operational Proactive product development Business Re-engineering INDIA Strong economic growth NPD extensions Outdoor growing portfolio diversification Radio new station launches OPPORTUNITIES Pricing Power Business Re-engineering Education Expansion in new markets Slide 26

28 INM GROUP SUMMARY Performance significantly better than peers Track record of strong performance and quality earnings All major markets delivering underlying growth in advertising and earnings Meeting and beating the competition on all fronts with market share gains Growing audience reach through multi-market/ multi-media approach Business Re-engineering Continued focus on being industry Low Cost Operator Cover pricing firm Accelerating performance of Online assets/ brands H1 performance trend continues into H2 Certain statements (verbal and written) in the operating assumptions for 2007 may be deemed forward-looking statements. The forward-looking statements (verbal and written) contained in this presentation, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the Group s ability to obtain the results predicted in the operating assumptions including, without limitation, the following factors: (a) increased consolidation among the major retailers or other events which may adversely affect business operations of major customers and depress the level of local, national or classified advertising; (b) economic downturn in some or all of the Group s principal markets leading to decreased circulation or local or national advertising; (c) a decline in general newspaper readership patterns as a result of the competitive alternative media or other factors; (d) an increase in newsprint or syndication costs over the levels anticipated; (e) labour disputes which may cause revenue declines or increased labour costs; (f) acquisitions of new businesses or disposals of existing businesses; (g) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (h) weakening exchange rates; (i) general economic, political and business conditions; and (j) an increase in interest rates etc... Slide 27

INM 2007 PRELIMINARY RESULTS

INM 2007 PRELIMINARY RESULTS 27 th March 2008 Gavin K. O Reilly Group COO Donal J. Buggy Group CFO INM FY 2007 Results Presentation www.inmplc.com Slide 1 Business Portfolio INM 2007 FINANCIALS FINANCIAL