INM 2007 PRELIMINARY RESULTS

Transcription

1 INM 2007 PRELIMINARY RESULTS 27 th March 2008 Gavin K. O Reilly Group COO Donal J. Buggy Group CFO INM FY 2007 Results Presentation Slide 1

2 Business Portfolio INM 2007 FINANCIALS FINANCIAL OVERVIEW Financial Highlights Segmental Performances Income Statement Cash Flows Balance Sheet & Capital Management EPS & DPS 27 th March 2008 Donal J. Buggy Group CFO INM FY 2007 Results Presentation Slide 2

3 INM BUSINESS PORTFOLIO Leading international media and communications group Dual primary listing ISE & LSE Total managed assets 4.7 bn Geographically and operationally diverse, with primary operations on 4 continents, in 10 major markets and in 22 countries Main Geographic Markets Ireland, UK, South Africa, Australia, New Zealand & India Core Business Segments Publishing (incl. Online), Outdoor Advertising & Radio INM brands deliver a weekly audience of over 100m consumers, one of the largest and most diverse communication networks worldwide INM FY 2007 Results Presentation Slide 3

4 INM BUSINESS PORTFOLIO IRELAND AUSTRALASIA National Newspapers Regional Newspapers Online operations Consumer Directory/ Local Search Wholesale & Distribution Education SOUTH AFRICA Metropolitan Newspapers Regional/Community Newspapers Online operations Magazines Outdoor UNITED KINGDOM National Newspapers Belfast Telegraph Group Online operations Magazines Wholesale & Distribution > 200 NEWSPAPERS & MAGAZINES Australia, India, Ireland, New Zealand, South Africa, U.K. > 100 ONLINE SITES Australia, Germany, India, Ireland, New Zealand, South Africa, U.K. > 75,000 OUTDOOR PANELS Africa, Australia, Hong Kong, India, Indonesia, Malaysia, New Zealand, South Africa > 130 RADIO STATIONS Australia, India, New Zealand 39.2% of APN News & Media Ltd. New Zealand National Publishing Regional Publishing Online operations Radio Outdoor INDIA 20.8% of Jagran Prakashan Ltd. Newspapers Online operations Outdoor Event management Radio OTHER INTERESTS 50.0% of Independent Star Ltd. 29.9% of Tribune Newspapers Plc. 49.0% of Verivox 20.4% of Cashcade 55.0% of yourlocal.ie (Ireland) 13.3% of Truphone 30.0% of Imprezzeo Pty INM FY 2007 Results Presentation Slide 4

5 INM GEOGRAPHICALLY & OPERATIONALLY DIVERSE INM is geographically & operationally diverse with a global footprint REVENUE BY BUSINESS SEGMENT Newspapers, Magazines, Online (68%) Print/ Dist (14%) Outdoor (9%) Radio (9%) REVENUE BY GEOGRAPHY ADJUSTED * EBIT BY GEOGRAPHY as reported * adjusted for 6% 100% Consolidated minorities Australasia 46% 25% 24% 30% Ireland 24% 33% South Africa 14% 20% United Kingdom 16% 22% * adjusted to exclude minority share 40% INM FY 2007 Results Presentation Slide 5

6 INM FINANCIAL HIGHLIGHTS Record Results adjusted EPS of 18.8 cent, up + 8.0% Record EBITDA of 385.3m Record Operating Profit of 349.2m, up + 7.8% in constant currency Continued cost efficiencies achieved on back of restructuring, despite revenue-driven cost increases and newsprint core operating costs down -1.5% (excl. WNS acquisition) 2007 Restructuring delivers in line with expectations Operating Margins expanded by 80 bps to 20.9% Reduced effective tax rate to 20.0% Simplified capital structure with share buy-backs minimising dilution of NZ CEPS and APN Convertibles Full year dividend per share of cent, up % INM FY 2007 Results Presentation Slide 6

7 SEGMENTS BY GEOGRAPHIC & BUSINESS TYPE FY 2007 GROUP SEGMENTALS millions % cfx (%) % cfx (%) Revenues Operating Profit Australasia % 1.6% % 3.8% Ireland (0.8%) (0.8%) % 4.1% South Africa (10.7%) 5.3% % 26.0% United Kingdom % 18.8% % 9.5% Group revenues up 3.9% in constant currency Profits up in all markets in aggregate up 7.8% in constant currency Less: Common Costs (16.4) (15.5) (5.8%) (5.8%) Group Total 1, , % 3.9% % 7.8% FY 2007 BY CLASS OF BUSINESS millions % cfx (%) % cfx (%) Revenues Operating Profit Publishing & Online 1, , % 3.3% % 7.5% Radio % 0.6% % 1.6% Outdoor % 14.2% % 34.0% Less: Common Costs (16.4) (15.5) (5.8%) (5.8%) Group Total 1, , % 3.9% % 7.8% Revenues and profits up in each class of business Performance led by strong Publishing performance with a 48% cut-thru, after product investment INM FY 2007 Results Presentation Slide 7

8 INM INCOME STATEMENT FY 2007 INCOME STATEMENT millions Change (%) GROUP REVENUES 1, , % EBITDA % Operating Profit % Net Exceptional Charges (37.7) (15.6) (141.7%) Share of Results of Associates and JVs % Net Interest Charge (82.4) (80.3) (2.6%) Profit Before Tax (0.7%) Profit Before Tax excluding Exceptionals % Taxation (52.7) (51.7) (1.9%) Profit After Tax (1.4%) Profit After Tax excluding Exceptionals % Minority Interests (85.0) (79.5) (6.9%) Record revenues of 1.674bn, led by strong Publishing performance Record Group EBITDA of 385.3m up +4.8% Operating Profit (preexceptionals) up +6.0% to 349.2m NET PROFIT (6.9%) NET PROFIT excluding Exceptionals % Strong increase (+17%) in contribution from Associates & JVs Interest charge only up 2.6% - despite acquisitions and increased rates Profit Before Tax at 286.1m (pre-exceptionals) up +7.7% Effective tax rate improved to 20.0% (vs. 20.7% in pcp) INM FY 2007 Results Presentation Slide 8

9 INM EXCEPTIONAL ITEMS FY 2007 EXCEPTIONAL ITEMS millions 2007 INM Group Headcount (annual average) Restructuring (45.9) 11,500 Online & Education Start-Ups (7.2) Gain on Sale of Assets (net) 15.4 Net Exceptional Items (37.7) Restructuring costs of 45.9m relate to over 550 redundancies in 2007 (average cost approx. 82,000) Redundancies mainly occurred in editorial/ page production in Publishing, across the Group Annualised restructuring savings of approx. 19m (c. 12m reported in 2007) yielding a 2.4 year pay-back 11,000 10,500 10,000 9,500 9,000 11,018 10,479 Online Education Acquisitions 10,249 9,922 9, ,363 8, Online and Education Start-Up costs of 7.2m relate to online start-up costs in APN (search4.co.nz, finda.co.nz, thedaily.com.au) and Ireland/ UK (yourlocal.ie, LoadzaCars.ie, LoadzaTravel.ie) & startup costs associated with Independent College, Ireland Gain on Sales of Assets of 15.4m relates primarily to properties in APN and Belfast INM FY 2007 Results Presentation Slide 9

10 INM CASH FLOW STATEMENT FY 2007 SUMMARY CASH FLOW STATEMENT millions Change ( m) Operating Cash (before changes in working capital & cash exceptionals) Changes in Working Capital (30.1) 0.4 (30.5) Exceptional Expenditure (incl. Restructuring Payments) (57.5) (34.9) (22.6) Operating Cash Flow (41.1) Interest (78.1) (71.6) (6.5) Taxation (33.9) (51.7) 17.8 Capital Expenditure, Net of Disposals (47.0) (41.3) (5.7) Minority Interest Dividends (77.3) (64.9) (12.4) FX Movements (2.6) 13.3 (15.9) Other Free Cash Flow (60.1) Dividends to Shareholders (72.6) (76.3) 3.7 Net investments (82.5) (28.7) (53.8) Compound Financial Instruments - Conversion & FX APN/ INM Share Buyback (174.1) (83.7) (90.4) Increase in Net Debt (65.8) (38.0) (27.8) Negative Working Capital of 30.1m due mainly to APN ( 23.8m) strong revenue in Q4, capex accruals, and timing of inventory and creditor payments Capex (net of disposals) of 47.0m reflects spend on 2 major print centres in Newry and Yandina Investments mainly reflect purchase of 50% of Toowoomba (Queensland) publishing unit INM/ APN share buybacks totalled 174.1m minimising the dilutive effect of the conversion of the NZ CEPS and APN Convertible Notes INM FY 2007 Results Presentation Slide 10

11 INM BALANCE SHEET FY 2007 SUMMARY BALANCE SHEET millions -- 31st December Change ( m) Intangible Assets * 3, , Tangible Assets Other Net Assets/ Liabilities ** Retirement Benefit Obligations (100.4) (126.9) 26.5 Net Debt *** (1,315.7) (1,249.9) (65.8) Total Net Assets 2, , Minority Interest (972.5) (667.5) (305.0) Attributable to Company Shareholders 1, , * includes internally generated mastheads and revaluationsindependently valued at 31st December 2007 ** excludes deferred tax on mastheads *** includes Compound Financial Instruments in 2006, as their conversion in 2007 was matched by a share buy-back Total Net Assets grew by 686.5m (+33%) Intangible Assets up mainly due to revaluation of newspaper mastheads Reduced Pension Deficit of 26.5m, driven by increased contributions and increased bond yields Net Asset Value per Share of 2.26 reflects a 23% increase YoY, and represents a premium of 29% to current INM share price INM FY 2007 Results Presentation Slide 11

12 INM EFFICIENT CAPITAL MANAGEMENT FY 2007 CAPITAL STRUCTURE millions Change ( m) NET DEBT* Recourse (806.5) (759.5) (47.0) Non - Recourse (APN Debt) (509.2) (490.4) (18.8) TOTAL NET DEBT (1,315.7) (1,249.9) (65.8) FY 2007 CAPITAL RATIOS Total Net Debt*/ EBITDA EBITDA/ Interest* Net Debt to Equity** 47.6% 60.2% Net Debt grew by 65.8m mainly as a result of the acquisition of 50% of Toowoomba and once-off restructuring payments Total Net Debt/ EBITDA of 3.4 times, within the Group s targeted range Interest cover at 4.7x, remains strong CAPITAL RATIO TRENDS FY Interest Cover Net Debt*/ EBITDA Net Debt*/ Equity 120% 100% 80% 60% 40% 20% 0% Adequate cash resources and available headroom on existing bank facilities to refinance 125m 8% Sub-Bond in December 2008 Comfortable headroom on Bank covenants * includes Compound Financial Instruments (CEPS and APN Convertibles) in 2006 ** including the revalued elements of mastheads and excluding deferred tax on intangibles INM FY 2007 Results Presentation Slide 12

13 INM SUPERIOR SHAREHOLDER RETURNS FY 2007 SHAREHOLDER STATS cent Change (%) Adjusted EPS * % DPS % Average fully diluted no. of shares (millions) % Average no. of shares (millions) during the year % * Fully diluted excluding exceptionals PER SHARE HISTORY ( ) % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% EPS (cents) Payout Ratio DPS (cents) INM FY 2007 Results Presentation Slide 13

14 INM 2007 OPERATING REVIEW Investment Case GDP Growth, India, NPD, Online, Education Operating Highlights Revenue Growth & Geographic Performances Total Shareholder Returns Q1 Business Conditions & 2008 Outlook 27 th March 2008 Gavin K. O Reilly Group COO INM FY 2007 Results Presentation Slide 14

15 INM INVESTMENT CASE Track record of industry-leading earnings growth through the cycle Market-leading brand positions with good margin protection in structurally superior growth markets Proactive and innovative investment in revenue generation across all business platforms Strong cost management culture producing industry-leading operating margins Successful history of strategic and accretive acquisitions Consistently rewarding shareholders INM FY 2007 Results Presentation Slide 15

16 INM INCREASING EXPOSURE TO GROWTH MARKETS 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 2008 GDP Forecast Growth Rates (%) Source: Economist Intelligence Unit The Demographic Dividend INM operates in some of the world s fastest growing markets All INM markets experiencing population growth Rising literacy rates, notably in India and South Africa 0.5% 0.0% Australia India Ireland New Zealand South Africa United Kingdom EU-15 G7 USA Continued growth forecast in each of INM s markets INM FY 2007 Results Presentation Slide 16

17 INDIA JAGRAN PRAKASHAN LTD. INM owns 20.8% of JPL, which is listed on the Mumbai Stock Exchange (JAGP.BO) JAGRAN PRAKASHAN LTD. NEWSPAPERS & MAGAZINES Publisher of Dainik Jagran, India s largest selling and most read daily newspaper in the world INM-India is aggressively expanding into Outdoor, Radio, Conferences & Exhibitions, and JPL has recently formed a JV with Yahoo! India ONLINE OUTDOOR JPL s results for the 4 quarters ended Dec confirm strong revenue growth +28.2%, with Net Profit +41.6% CONFERENCES/ EXHIBITIONS RADIO INM FY 2007 Results Presentation Slide 17

18 DELIVERING GROWTH NPD/ INNOVATION Increased use of gloss colour printed in-house (Newry & Yandina) New sections/ formats New language/ vernacular titles Reverse publishing from Online New Online platforms and community websites New Online extensions in transactional services INM FY 2007 Results Presentation Slide 18

19 EXPANDING MULTI-PLATFORMS ONLINE INM s core digital assets centred around 4 key pillars: EDITORIAL PORTALS CLASSIFIED PORTALS DIRECTORIES/ SEARCH E-COM/ TRANSACTIONAL ENGINES ADVERTISING BASED (DISPLAY/ CLASSIFIED/ CPC) News Services Listings UGC Property Motors Jobs Dating General Local Search Mapping Travel Entertainment Price Comparator Online Gaming Financial Services Mobile VoIP Image Search roamfree.com INM FY 2007 Results Presentation Slide 19

20 EXPANDING MULTI-PLATFORMS ONLINE ONLINE Revenues & Profit millions (Constant FX) % Online Revenue (incl. share of Associates/ JVs) % Advertising (Classified & Display) - 100%-owned Subsidiaries % Total Operating Profit (incl. share of Associates/ JVs) (38.1%) Web Metrics % Page Impressions [PIMs] (m) - monthly % Average Unique Users (m) - monthly % Investment phase continues across all 100%-owned editorial and classified portals, driving significant increase in unique users, PIMs and revenues, but temporarily impacting Operating Profit Like-for-like online classified & display advertising now represents over 3.5% of publishing advertising revenue, and grew at 47.0% YoY Aggregate INM online revenues growing at 111.5% - significantly ahead of market INM achieving significant returns from strategic investments in price comparison, online gaming (bingo), as well as nascent investments in fast-growing sectors like image search and mobile VoIP INM FY 2007 Results Presentation Slide 20

21 INM IDENTIFYING NEW GROWTH OPPORTUNITIES EDUCATION INM has invested in the fast-growing education sector via its initial strategic investment Independent College Ireland which builds on INM s existing educational platforms both editorial and online Scaleable across each of INM s markets OUTDOOR INM has agreed to acquire* Clear Channel s 50% interest in African outdoor advertising company, Clear Channel Independent (CCI), taking INM s ownership of CCI to 100% CCI is the largest outdoor advertising operator in Africa and South Africa which will host the 2010 FIFA World Cup and achieved 2007 YoY revenue growth of 20% Increases exposure to other high growth markets across Africa * announced Jan South African regulatory approval now received INM FY 2007 Results Presentation Slide 21

22 DELIVERING GROWTH LOW COST OPERATOR INM is strategically-focused on being the industry s low cost operator Our focus is on fundamentally re-defining and re-engineering the traditional media business model INDUSTRY LEADING OPERATING MARGINS NET OPERATING MARGI N (%) In the period , Group permanent headcount reduced by 12% to approx. 9,600 at 31-Dec-07 - despite numerous acquisitions 20.1% 20.9% All business segments increasing margins FY 2007 MARGINS BY BUSINESS SEGMENT % percentage % 19.3% Publishing & Online 21.6% 20.8% Radio 34.7% 34.4% 17.2% Outdoor Advertising * 11.6% 9.9% Group Total - after common costs 20.9% 20.1% '03 '04 '05 '06 '07 * 100% consolidated operations only - excludes SA & APN associates Figures are reported under previously applied Irish GAAP for 2003 and under IFRS for years INM FY 2007 Results Presentation Slide 22

23 INM FY 2007 OPERATING HIGHLIGHTS Performance better than peers All divisions (Publishing, Radio, & Outdoor) achieve growth in revenues and profits All main geographic regions (Australasia, Ireland, South Africa, UK) delivering profit growth Advertising revenues up in all markets; up 5.9% in constant FX Group circulation revenues up 0.6% in constant FX Very significant growth in Online in all markets Asset base enhanced by strategic investments Continued cost efficiencies achieved - following radical business re-engineering INM FY 2007 Results Presentation Slide 23

24 BUSINESS SEGMENTS REVENUE GROWTH FY 2007 "LIKE-FOR-LIKE" REVENUE GROWTH BY PRIMARY MARKET (Constant FX) %-age Growth YoY Publishing Outdoor Radio Circulation Advertising/ Online Print/ Dist. Advertising Advertising TOTAL Australasia (0.7%) 2.8% (39.2%) 14.2% 0.6% 1.6% Ireland 2.1% 7.6% (14.9%) - - (0.8%) South Africa 8.4% 8.2% (10.4%) % United Kingdom (5.0%) 5.5% 151.8% % Total - Subsidiaries 0.6% 5.4% (0.2%) 14.2% 0.6% 3.9% Total - Associates & JVs (INM share) 6.4% 91.4% % % TOTAL GROUP Publishing Outdoor Radio %-age Growth YoY Circulation Advertising/ Online Print/ Dist. Advertising Advertising TOTAL Total Group (incl. Associates & Jvs) 0.9% 8.4% (0.2%) 15.3% 0.6% 5.8% FY 2007 Publishing: Advertising & Circulation (Constant FX) Volume Yield Advertising (incl. Online) 0.6% 4.8% Circulation (2.0%) 2.6% Total 5.4% 0.6% INM FY 2007 Results Presentation Slide 24

25 GEOGRAPHIC SEGMENTS AUSTRALASIA & IRELAND AUSTRALASIA millions % cfx (%) Revenues % 1.6% Total Costs (576.7) (560.5) (2.9%) (0.8%) Operating Profit % 3.8% Operating Profit Margin 25.0% 24.4% APN achieved record Operating Profit of 192.7m up 6.4%, or + 3.8% in constant FX Operating costs only up 0.8% in constant currency, delivering strong operating leverage and a 60bps increase in operating profit margin Overall performance driven by growth in Australian Regional newspapers and Outdoor APN continues to invest heavily in its Online division with good effect IRELAND millions % cfx (%) Revenues (0.8%) (0.8%) Total Costs (303.0) (310.3) 2.4% 2.4% Operating Profit % 4.1% Operating Profit Margin 24.5% 23.3% Ireland grew Operating Profit to a record 98.3m, despite a slight contraction in revenues (entirely due to the loss of low margin distribution contracts) 2007 Operating Profit includes the full cost (approx. 2m) of herald am; in exceptionals in Like-for-like Operating Profit up 6.3% Active cost control delivered a 2.4% reduction in costs, expanding margins to 24.5% (up 120 bps) Publishing drove the performance with strong gains in advertising (+7.6%) far exceeding the market growth of 1.3% INM FY 2007 Results Presentation Slide 25

26 GEOGRAPHIC SEGMENTS SOUTH AFRICA & UK SOUTH AFRICA millions % cfx (%) Revenues (10.7%) 5.3% Total Costs (175.6) (207.6) 15.4% (0.3%) Operating Profit % 26.0% Operating Profit Margin 25.2% 21.0% Despite a series of interest rates hikes (up 350 bps since June 2006), INMSA reported a record Operating Profit of 59.1m (after adverse FX) In constant currency, Operating Profit grew by 26.0% on the back of a + 5.3% increase in revenues Strong cost management held costs flat, lifting the EBIT margin by 420 bps INMSA recorded good revenue growth and maintained leading market share positions UNITED KINGDOM millions % cfx (%) Revenues % 18.8% Total Costs (252.6) (212.3) (19.0%) (19.4%) Operating Profit % 9.5% Operating Profit Margin 5.8% 6.3% Revenues % in constant currency includes WNS distribution division acquired in 2006 Advertising revenues + 5.5% (Belfast +6.5%; Independent + 2.1%) Good readership results for The Independent (+6.0%) in the 12 months to September 2007 Costs % in constant currency driven by full-year impact of WNS acquisition Operating Profit grew by + 9.5% in constant currency Northern Ireland print facilities (Belfast & Newry) delivering efficiencies for island of Ireland titles INM FY 2007 Results Presentation Slide 26

27 INM TRACK RECORD OF SUPERIOR GROWTH INM delivers superior growth REVENUE (in m) OPERATING PROFIT (before exceptionals) (in m) ADJUSTED EPS * (in cent) DPS (in cent) 1, , , , , '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 * diluted EPS before exceptional items All above figures are reported under previously applied Irish GAAP for 2003 and under IFRS for years INM FY 2007 Results Presentation Slide 27

28 INM TRACK RECORD OF SUPERIOR PERFORMANCE Delivering superior shareholder returns (TSR); consistently outperforming its peers in the past 5 years Performance INM DMGT Trinity Jpress EMAP Pearson L'Espresso Telegraaf Gannett NYTimes Fairfax 5 YR TSR 105.6% (6.0%) (18.6%) (58.2%) 48.0% 58.4% 2.7% 62.0% (55.7%) (54.0%) 55.6% INM DMGT TRIN M J PRESS EMAP PEARSON L'ESPRESSO TELEGRAAF GANNETT NY TIMES FAIRFAX 450 Rebased to 100 Source: Datastream Mar 03 May 03 Jul 03 Sep 03 Nov 03 Jan 04 Mar 04 May 04 Jul 04 Sep 04 Nov 04 Jan 05 Mar 05 May 05 Jul 05 Sep 05 Nov 05 Jan 06 Mar 06 May 06 Jul 06 Sep 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Jan 08 Mar 08 delivered a 20% CAGR in total shareholder return since 1973 INM FY 2007 Results Presentation Slide 28

29 INM TRACK RECORD OF SUPERIOR PERFORMANCE INM consistently outperforms the market Performance INM ISE FTSE FTSE 300 FTSE Media 5 YR TSR 105.6% 79.3% 82.4% 90.5% 40.2% INM ISE FTSE 100 FTSE 300 FTSE MEDIA 460 Rebased to 100 Source: Datastream Mar 03 May 03 Jul 03 Sep 03 Nov 03 Jan 04 Mar 04 May 04 Jul 04 Sep 04 Nov 04 Jan 05 Mar 05 May 05 Jul 05 Sep 05 Nov 05 Jan 06 Mar 06 May 06 Jul 06 Sep 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Jan 08 Mar 08 delivered a 20% CAGR in total shareholder return since 1973 INM FY 2007 Results Presentation Slide 29

30 INM BUSINESS CONDITIONS/ OUTLOOK 2008 YTD REVENUE GROWTH PERFORMANCE (to week ) (Constant FX) Advertising Total COMMENTARY Australasia +4.1% +3.0% Ireland (4.7%) +1.5% South Africa +3.7% +4.0% United Kingdom (0.7%) +0.7% GROUP - TOTAL: +2.1% +2.7% 2008 OUTLOOK (Constant FX) CURRENT ESTIMATE Strong Australian Regionals & Outdoor Markets Strong comparators in H Good Circulation and Distribution revenue growth Strong comparators in H Weak property advertising Power disruptions impacting retail/ motors/ property advertising Advertising in line with market Interest rate increases Total revenue growth driven by Northern Ireland contract print & distribution Outlook While it is too early to definitively predict full year performance, our current estimates - based on Q1 trading and prior year advertising trends - is outlined in the table (left) Australasia Ireland South Africa United Kingdom YTD advertising trend continuing Easier advertising comps as year progresses YTD advertising trend to improve marginally YTD advertising trend to turn positive with easier H2 comps Costs well controlled, with further benefits from 2007 restructuring and newsprint prices FX Currency protection on SAR and A$ profits for 2008 Earnings low to mid-single digit growth Certain statements (verbal and written) in the operating assumptions for 2008 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... INM FY 2007 Results Presentation Slide 30

31 INM BUSINESS CONDITIONS/ OUTLOOK Performance better than peers Track record of strong performance and quality earnings YTD growth in advertising, circulation and earnings Building on 2007 market share gains Growing audience reach through multi-market/ multi-media approach Outdoor showing strong growth fragmentation-proof Re-engineering Continued focus on being industry Low Cost Operator Newsprint pricing - down Accelerating performance of Online assets/ brands 2008 TRADING Q1* vs. Q Total Revenues (Constant FX) Australasia ahead Ireland ahead South Africa ahead United Kingdom ahead Group - Advertising ahead Group - Circulation ahead * based on unaudited accounts to week 11 Certain statements (verbal and written) in the operating assumptions for 2008 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... INM FY 2007 Results Presentation Slide 31