INM FINAL RESULTS 2008

Transcription

1 INM FINAL RESULTS th April

2 CORPORATE OVERVIEW A leading international newspaper and communications group Spanning 4 continents, 10 major markets and 22 individual countries Revenue by segment 15% 14% 26% 45% Consolidated Total: 1,476.6m Over 200 newspapers & magazines with combined weekly circulation of 32m+ copies & weekly audience of 100m+ consumers Over 100 editorial, classified & transactional websites Over 75,000 outdoor panels Over 130 radio stations with an audience of almost 6m Australasia Ireland South Africa United Kingdom Op. Profit by segment 24% 51% 25% Australasia Ireland South Africa Consolidated Total: 290.3m* * Before exceptional items 2

3 2008 OPERATING HIGHLIGHTS Good revenue performance in exceptionally challenging market conditions total Group Revenue down only 2.6% in constant currency Marked reduction in advertising in H2 post September Underlying advertising and circulation revenues (and market share) comparatively resilient reflecting the continuing benefit of geographic diversity, price leadership & product innovation: FY2008 REVENUES Constant Currency Change Publishing revenues (5.2%) Publishing Advertising revenues (incl. Online) (8.5%) Circulation revenues +0.5% Online revenues +16.3% Outdoor revenues +24.5% Radio revenues (7.2%) Operating costs reduced by 138 million year on year Producing strong cash flows Delivering strong, industry leading operating margins 3

4 2008 STRATEGIC DEVELOPMENTS Acquired Clear Channel Outdoor's 50% interest in Clear Channel Independent, Africa's largest outdoor advertising company, taking ownership to 100%; successfully rebranded as INM Outdoor in Q3 Acquired The Sligo Champion, a west of Ireland regional newspaper, complementing INM's portfolio of leading regional titles in Ireland Acquired 20% stake in Republika, one of Indonesia's largest circulating national daily newspapers Joint venture formed with Carside Ltd (Australia) to launch a dedicated online search directory for Ireland Completion of strategic review of 39.1% shareholding in APN despite significant interest, poor credit markets did not support a fully financed bid that could have been recommended to shareholders Consistent with the objective to de leverage, INM has identified a number of non core assets for disposal 4

5 OPERATIONAL PERFORMANCE FY 2008 PERFORMANCE BY CLASS OF BUSINESS REVENUE OPERATING PROFIT Change Constant FX Change Constant FX millions % % % % Publishing & Online 1, ,370.2 (14.1%) (5.2%) (20.5%) (13.8%) Radio (14.6%) (7.2%) (23.9%) (18.7%) Outdoor % 24.5% % 73.9% Common Costs (13.4) (16.4) (18.3%) (18.3%) TOTAL 1, ,673.5 (11.8%) (2.6%) (16.9%) (9.8%) YoY MOVEMENT Revenue Operating millions Profit Publishing & Online (193.5) (60.5) Radio (21.9) (12.4) Outdoor Common Costs 3.0 TOTAL (196.9) (58.9) REVENUE SPLIT 9% 12% 79% Publishing & Online Radio Outdoor Double digit declines in Publishing and Radio partially offset by strong growth of Outdoor (which includes INM Outdoor (Africa) since April 08) Publishing Revenue fell by 193.5m, yet EBIT fall was limited to a third of that ie. 60.5m, reflecting strong cost management Common Costs down by 3.0m representing an 18.3% saving on PCP Despite weak ad markets, strong margins by division: Publishing... 20% Radio...31% Outdoor...17% 5

6 REVENUE PERFORMANCE BY MARKET FY 2008 REVENUE PERFORMANCE BY PRIMARY MARKET (Constant FX) % age Growth YoY PUBLISHING OUTDOOR RADIO TOTAL Circulation Advertising/ Print & Advertising Advertising REVENUES Online Distribution Australasia 0.7% (5.5%) (26.7%) (0.4%) (7.2%) (4.9%) Ireland 2.8% (15.0%) 0.5% (6.0%) South Africa * 4.9% (2.3%) (5.1%) 18.3% 1.8% United Kingdom (5.7%) (15.2%) 8.6% (6.6%) Total Subsidiaries 0.5% (8.5%) (1.2%) 3.6% (7.2%) (4.3%) Total: Associates & JVs (INM Share) ** 2.7% 4.8% 8.8% 5.6% TOTAL GROUP ** 0.7% (7.7%) (1.2%) 4.4% (7.2%) (3.7%) Total Group Revenue**, in constant currency, decreased by 3.7% as advertising revenues deteriorated significantly in H2 (particularly in Q4) in the publishing division. At H1 2008, publishing advertising revenues were only down 0.9% next slide details H1/ H2 split Circulation revenues increased by 0.7%, reflecting progressive cover price increases on selected titles Overall revenue strategy has been to maintain or grow market share and aggressively manage yield in advertising, circulation and contract print & distribution. Contract print decreased by 1.2% reflecting loss of contracts in New Zealand, offset by good revenue growth in Newry * Includes Clear Channel Independent Outdoor for 12 months in both 2007 and 2008 ** Represents INM s share including Associates and JVs 6

7 ADVERTISING PERFORMANCE PUBLISHING Publishing advertising revenue represents 45.4% of total Group revenue 28.6% of total Group revenue is display (retail & brand advertising) and 11.8% is recruitment, property and motors Publishing Advertising which was down 0.9% in H1, deteriorated sharply in H2 and was down 15.5%, with notably sharp declines in Ireland, New Zealand, Northern Ireland and London with South Africa faring much better FY 2008 Publishing / Online Advertising Growth (Constant FX) H H FY2008 Australasia 2.9% (12.8%) (5.5%) Ireland (5.7%) (24.5%) (15.0%) South Africa 2.3% (6.4%) (2.3%) United Kingdom (7.7%) (22.7%) (15.2%) Total: Publishing (0.9%) (15.5%) (8.5%) Radio 8.6% PUBLISHING ADVERTISING 45.4% Fully reflecting credit crunch the primary areas of weakness property, motors and recruitment offset by relatively good retail and brand advertising Despite weak market volumes, good gains in market share were recorded as advertisers consolidated their spend in our market leading titles Circulation 19.9% Print & Distribution 14.4% Outdoor 11.7% Publishing Advertising 45.4% Recruitment 5.9% Property 4.1% Automotive 1.8% Other 5.0% Display 28.6% 7

8 MARKET PERFORMANCES AUSTRALASIA IRELAND millions % cfx (%) Revenues (12.7%) (4.9%) Operating Costs (516.3) (576.7) (10.5%) (2.4%) Operating Profit (19.3%) (12.3%) Margin (%) 23.1% 25.0% (190 bps) millions % Revenues (6.0%) Operating Costs (301.5) (303.0) (0.5%) Operating Profit (22.9%) Margin (%) 20.1% 24.5% (440 bps) Readership growth in Regionals contributed to a solid advertising performance in a challenging economic environment The New Zealand Herald and Herald on Sunday continue to win market share in advertising and circulation Active cost management editorial production of regional titles transferred to a single outsourced facility Strong outdoor performance launch of Australia s largest digital billboard generating greater revenue than a static site Radio advertising showing some resilience market leader in New Zealand (47.3% market share; 10+ audience) Further investment in Online recording strong organic growth generated nearly 300% increase in revenue and traffic Circulation revenues up an impressive 2.8%, reflecting select cover price increases together with solid circulation volumes ROP / retail revenues reported modest growth (but a sharp falloff in H2) cushioning reduced property and recruitment revenues Further extension of geographical presence with the acquisition of The Sligo Champion Online significant revenue growth from our publishing platform launch of the Evening Herald website ( and suite of regional sites Successful integration of WNS with Newspread (NI and RoI) providing an all Ireland distribution solution Excellent progress at Independent College; now the largest student body for professional law courses in Ireland, with 6 first place prize winners in the 2008 Law Society of Ireland entrance examinations 8

9 MARKET PERFORMANCES SOUTH AFRICA UNITED KINGDOM millions % cfx (%) Revenues (9.5%) 15.1% Operating Costs (140.3) (175.6) (20.1%) 6.4% Operating Profit % 41.1% Margin (%) 34.0% 25.2% 880 bps millions % cfx (%) Revenues (19.8%) (6.6%) Operating Costs (214.8) (252.6) (15.0%) 0.9% Operating Profit (98.7%) (98.7%) Margin (%) 0.1% 5.8% (570 bps) Economic conditions have not been as badly impacted as in Europe and Australasia Revenue (+15.1%) and Operating Profit (+41.1%) up YoY in constant currency Publishing titles have maintained their strong market positions in both circulation and advertising despite aggressive competition Successful launch of the Sunday edition of Zulu language title, Izolezwe (Izolezwe ngesonto) Launch of South Africa s largest property website ( with > 270,000 properties listed Since acquiring full control of Clear Channel Independent Outdoor in March 2008, INM Outdoor has successfully expanded into highgrowth markets outside South Africa Madagascar INM Outdoor has market leading presence well placed to take advantage of revenue opportunities arising from the 2010 Soccer World Cup Major 2008 restructuring & cost efficiency drive in London/ Belfast and closure of loss making magazine division Strong focus on reducing operating costs operating profit fall contained to only 15.3m despite 53.1m revenue fall Service Sharing Agreement with DMGT providing office space & range of services to The Independent (from Q2 2009) to reduce annualised costs by 10m (c. 11.1m) Success of the Belfast Telegraph morning compact edition led to launch of a fully compact format from March 2009 Printing 3 modern, fully equipped print plants on the island of Ireland, with the dual heat set/ cold set press installed at Newry, N. Ireland Successful launch of with integrated classified print product re launch yielded 3 fold increase in Uniques & PIMs, resulting in 78% rise in online revenues in H2 08 9

10 MARKET PERFORMANCES INDIA INDONESIA Jagran Prakashan Limited [ JPL ], INM s 20.8% owned Indian associate listed on the Mumbai & National Stock Exchange JPL recorded an 11.2%* increase in Revenue to 130.5m with Operating Profit of 20.5m for the 4 quarters to Continued strong growth of Dainik Jagran, India s largest newspaper & the world s largest read newspaper (55.7m readers) i Next, India s first ever bilingual newspaper, targets young adults in urban centres, with a circulation of 300,000 /day Jagran Engage has secured exclusive rights in key outdoor properties in Delhi, Mumbai and Bangalore Mobile division (J9) continues to expand, successfully launching its digital web/ SMS portal, Radio Mantra (in which INM has a 20% stake) continued to expand with 8 stations and 2.5m listeners; the No.1 radio station in 4 out of 5 areas in which it broadcasts (Indian Radio Survey R2 2008) PT Abdi Bangsa [ ABBA.JK ], INM s 20.0% owned Indonesian associate listed on the Jakarta Stock Exchange. PT Abdi Bangsa recorded a 28.4% increase in Revenue to 10.1m, with EBITDA of 1.7m for year end INM s investment announced in May 2008 for a consideration of 5.3m Indonesia is a very fast growing media market and the 4 th most populous country in the world (234m) PT Abdi Bangsa is publisher of Republika, Indonesia s No. 2 national, quality daily PT Abdi Bangsa also has interests in magazines (under licence), online, outdoor advertising, and book publishing * in constant currency 10

11 EXPANDING MULTI MEDIA PLATFORMS ONLINE FY 2008 ONLINE SUMMARY Change millions (in constant FX) % Total Online Revenue (incl. share of Associates/ JVs) % Advertising (Classified & Display) 100% owned % Total Operating (Loss)/ Profit incl. share of Associates/ JVs (0.7) % Web Metrics Page Impressions (PIMs) millions/ monthly % Average Unique Users (UUs) millions/ monthly % Investment phase continues across all 100% owned editorial and classified portals, driving significant increase in unique users (+31%), PIMs (+30%), but temporarily impacting Operating Profit (loss of 700,000) Brand new 2008 Launches: and number of new regional sites(roi); (NI); (SA) Like for like online classified & display advertising now represents over 4.7% of publishing advertising revenue, and grew at 16.3% YoY Despite advertising challenges, aggregate INM online revenues growing at 6.5% INM achieving excellent traction from strategic investments in fast growing sectors like image search and mobile VoIP 11

12 CONTINUING OPERATING COST REDUCTION Like for like * INM s 2008 operating costs declined 12.3% (3.0% decline in constant currency) Like for like costs fell 163.1m of which FX translation represented 123.5m Underlying costs down 39.6m, with good savings in all functional areas, and modest investments in editorial/ production, depreciation, distribution/ wholesaling, and outdoor site rentals (which were all revenuerelated) Other 21% Newsprint 11% Outdoor Site Rentals 6% 2008 Cost Profile Common Costs 1% Depreciation 3% Distribution/ Wholesaling 16% Editorial & Production 12% FY 2008 OPERATING COST ANALYSIS (excluding Acquisitions) Change Constant millions % FX (%) Common Costs (17.8%) (17.8%) Depreciation (0.4%) 9.2% Distribution/ Wholesaling (5.5%) 0.3% Editorial & Production (9.3%) 0.5% Labour (12.8%) (3.5%) Newsprint (18.5%) (8.9%) Other (17.3%) (5.2%) Outdoor Site Rentals (6.8%) 1.7% TOTAL OPERATING COSTS 1, ,324.2 (12.3%) (3.0%) Operating Cost Movements in Constant Currency ('08 v '07) 1,335 1,325 1,315 1,305 1,295 1,285 1,275 1, ,284 * Excludes acquisitions Labour 30% 12

13 2008 BUSINESS DRIVERS Revenue Diversity Expand revenue base beyond publishing advertising 12% 9% 14% 20% 45% Publishing Advertising Circulation Print & Distribution Radio Outdoor Multi Media Multi Platform Extend online revenue base Price Leadership Firm pricing across all platforms Across Advertising, Circulation, Contract Print, and Wholesale Distribution Innovative Continuous product development Low Cost Operator Proactive payroll, discretionary cost management Like for Like * Operating Costs Down Central Costs Down Geographic Diversification Exposure to fastergrowing economies Adding to India and South Africa, strategic 20% investment in PT Abdi Bangsa (Indonesia) * Excludes acquisitions 13

14 2008 OPERATIONAL SUMMARY Operational diversity delivering superior performance in challenging operating conditions Online, innovation and price leadership partially mitigating severe market weakness in advertising Extremely active management of weak revenue environment through: Select cover price increases Proactive advertising yield management to partially compensate volume declines, though not at expense of market share Unrelenting focus on cost reduction, with flow through benefits of cost reduction programmes yielding returns: off setting cost pushes in distribution, labour, consumables and outdoor site rentals (revenuedriven) Primary focus on cash management and deleveraging: continuing cost reductions reduced capital expenditure Superior Operating Leverage INM s platform and geographic diversity, sharper business focus and best in class operating margins will allow continued outperformance compared to its peer group as market conditions improve 14

15 2008 FINANCIAL HIGHLIGHTS SUMMARY FY RESULTS ( millions) (%) (%) Constant FX Revenue 1, ,673.5 (11.8%) (2.6%) Operating Costs 1, ,324.3 (10.4%) (0.7%) EBITDA * (14.5%) (6.7%) Operating profit * (16.9%) (9.8%) Operating margin (%) * 19.7% 20.9% 120 bps Exceptional items (373.1) (37.7) (889.7%) Profit before tax * (26.0%) Adjusted EPS (cent)** (33.0%) DPS (cent) *** (66.6%) * Before exceptional items ** Diluted EPS excluding exceptionals *** No Final Dividend declared for 2008 Creditable performance in 2008 in challenging market conditions: Revenue 1,476.6 m EBITDA 331.3m Operating Profit 290.3m Adjusted EPS 12.6 cent Cash generated from operations of 287.3m (+3.0%) INM maintains industry leading operating margins of 19.7% NZ Tax case, in respect of the 2001 Masthead transaction, successfully concluded with no liability to INM Focus for 2009 is to maximise available cash flow and reduce leverage: Unrelenting focus on cost reduction Reduced capital expenditure Suspension of dividend Sharper business focus and disposal of non core assets 15

16 PERFORMANCE IN CONTEXT 10 Year Financial Performance 2008 Revenues: 1,476.6m 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1, '99 '00 '01 '02 '03 '04 '05 '06 '07 ' % 20.0% 15.0% 10.0% 5.0% 0.0% Revenue Decline 196.9m CAGR + 6.3% 2008 Margin: 19.7% Margin Decline 120 basis points 2008 Operating Profit: 290.3m Operating Profit Decline 58.9m CAGR + 7.5% Revenue (LHS) Operating Profit (LHS) Margin (RHS) 16

17 2008 INCOME STATEMENT SUMMARY FY 2008 GROUP INCOME STATEMENT Year Ended 31st December 2008 Year Ended 31st December 2007 Before Before Before Exceptional Exceptional Exceptional Exceptional Exceptional millions Items Items Total Items Items Total Items (%) Revenue 1, , , ,673.5 (11.8%) Operating Profit/ (loss) (365.9) (75.6) (37.7) (16.9%) Share of Associates & JVs (33.2%) Net Finance Charge (91.5) (7.2) (98.7) (82.4) (82.4) (11.0%) Profit/ (Loss) Before Tax (373.1) (161.4) (37.7) (26.0%) Taxation (41.4) (57.2) 4.5 (52.7) (27.6%) Profit/ (Loss) After Tax (329.7) (159.4) (33.2) (25.6%) Minority interests (66.3) 61.3 (5.0) (85.2) 0.2 (85.0) (22.2%) Net Profit (268.4) (164.4) (33.0) (27.6%) Fully Diluted EPS 12.6c (32.5c) (19.9c) 18.8c (4.3c) 14.5c (33.0%) Revenue declined 11.8%, impacted by adverse FX of 153.2m; in constant FX, Revenue was only down 2.6% Operating Profit down 16.9% impacted by adverse FX of 24.5m; in constant FX, Operating profit down 9.8% Share of Associates and JVs down on 2007 mainly due to transfer of INM Outdoor (SA) to a subsidiary Net finance charge increased by 11.0%, reflects investments and increased interest rates (primarily Euro, NZ$ & A$ which have subsequently reversed Iate in 2008 and early in 2009) Effective tax rate (excluding exceptionals) of 19.6% down from 20.0% in

18 2008 EXCEPTIONAL ITEMS FY 2008 EXCEPTIONAL ITEMS millions Non Cash Impairment Charges (290.9) 0.0 Gains/ (losses) on sale of assets, net of transaction costs (4.9) 15.4 Restructuring Charges (58.0) (45.9) Online & Education Start up and other development costs (12.1) (7.2) (365.9) (37.7) Exceptional Finance Charge (7.2) 0.0 TOTAL EXCEPTIONAL ITEMS (373.1) (37.7) Costs incurred as part of renegotiations of financing arrangements in 2008 Mainly online start up costs in Australasia and Education start up costs in Ireland Arose primarily on the Group s intangible assets as a consequence of the current economic downturn A recovery in the economic climate will see an improvement in these valuations Other intangible assets within the Group have a value in excess of book value. However, IFRS does not permit offsetting Relates to a headcount reduction of 790 (630 of which occurred in 2008) and restructuring of onerous contracts in Australasia and the UK 18 18

19 2008 CASH FLOW SUMMARY FY 2008 SUMMARY CASH FLOW STATEMENT millions Change EBITDA (56.2) Changes in Working Capital 19.4 (30.1) 49.5 Exceptional Expenditure (incl. Restructuring Payments) (48.2) (57.5) 9.3 OPERATING CASH FLOW Interest (85.8) (78.1) (7.7) Taxation (34.9) (33.9) (1.0) Capital Expenditure, Net of Disposals (38.1) (47.0) 8.9 Minority Interest Dividends (72.8) (77.3) 4.5 Other (2.4) 14.3 (16.7) FREE CASH FLOW (9.4) Dividends to Shareholders (97.7) (72.6) (25.1) Net Investments (27.3) (82.5) 55.2 Compound Financial Instruments Conversion & FX (198.9) Share Buyback (INM & APN) 0.0 (174.1) FX Movements 62.0 (13.4) 75.4 DECREASE/ (INCREASE) IN NET DEBT 5.5 (65.8) 71.3 Strong EBITDA of 331.3m generated from operations, with decline on 2007 offset by Working Capital efficiencies Capex (net of disposals) of 38.1m reflects final installation of heat set printing units in Newry Print and completion of Queensland press realignment Investments principally represent the acquisition of The Sligo Champion (less cash acquired) and PT Abdi Bangsa in Indonesia For 2009, Capex forecast at approximately 31m, significantly below depreciation 19

20 2008 BALANCE SHEET & FINANCIAL RATIOS FY 2008 SUMMARY BALANCE SHEET millions 31 Dec Dec 07 Change Intangible Assets 1, ,805.4 (474.9) Tangible Assets (41.6) Other Net Assets/ Liabilities (73.4) (18.7) (54.7) Net Debt (1,310.2) (1,315.7) 5.5 Recourse (853.4) (806.5) (46.9) Non Recourse (APN Debt) (456.8) (509.2) 52.4 Retirement Benefit Obligations (148.8) (100.4) (48.4) TOTAL NET ASSETS (614.1) CAPITAL RATIOS 31 Dec Dec 07 Total Net Debt/ EBITDA 3.95x 3.40x EBITDA/ Interest 3.62x 4.70x Total Net Assets down by 614.1m, primarily due to adverse FX movements ( 297.4m) at end 2008 (somewhat reversed in early 2009) and impairments Total Net Debt to EBITDA of 3.95x and interest cover at 3.62x New 105.0m Bank Facility signed in August 2008; used to fund redemption of 112.6m outstanding on 125.0m 8.0% Bond maturing in Dec Increase in Retirement Benefit Obligations driven by poor returns on equities during

21 2009 UPDATE ASSET REVIEW & DISPOSAL Consistent with the objective to deleverage, INM has identified a number of non core assets to be disposed of Auction processes currently underway for INM s interest in Cashcade, Verivox and INM Outdoor (Africa) Expected Timing completed by end Q Estimated Proceeds INM is expecting to receive proceeds in the range of 100m 150m Proceeds will be applied towards debt reduction REFINANCING STRATEGY Due to current difficult credit markets, INM has been unable to raise funds to meet the bond maturity of its 200 million 5.75% Guaranteed Bonds on 18 th May 2009 INM has appointed Rothschild and Davy Stockbrokers to advise on its refinancing requirements INM has entered into constructive discussions with both the Bondholders and its Banks Discussions to date have indicated a willingness from all parties to seek agreement on this refinancing INM remains confident that an agreement will be reached which is acceptable to the Group 21

22 2009 BUSINESS DRIVERS/ STRATEGY BALANCE SHEET MANAGEMENT FINANCING Restructure Bank and Bond liabilities and extend their maturities ADVERTISING Uncertainty in markets set to continue. Strong yield management insulates against volume declines REVENUE MANAGEMENT CIRCULATION Select cover price increases and full year benefit of 2008 increases ONLINE Continued albeit more modest growth PAYROLL Benefits of prior year restructurings and 2009 salary reductions (ranging from 5% to 10%)/ pay freezes COST MANAGEMENT NEWSPRINT Price increases partially offset by reduced paginations, varied grades, tighter output management DISCRETIONARY COSTS Cut back where possible on all discretionary costs 22

23 TRADING UPDATE & OUTLOOK INTERIM MANAGEMENT STATEMENT 1 st January to 24 th April 2009 To date, INM has experienced a continuation of the tough trading conditions experienced in the last 4 months of 2008 While the trading performance compared to the same period in 2008 appears weak, it should be noted that Q was a particularly strong quarter, especially in Ireland, and the comparators become more favourable as 2009 progresses YTD total revenues (in constant currency) are down year on year by 13.5%, with: Group advertising revenue down by 18.4%; and Group circulation revenue down by 1.0%. Costscontinuetobewell managed: 7.9% below the pcp (in constant currency), despite significant newsprint price increases Assuming advertising and credit markets do not deteriorate further, INM currently expects 2009: Operating Profit (before exceptionals) to be within a 200 million 230 million range EBITDA to be within a 240 million 270 million range Certain statements (verbal and written) in the operating assumptions for 2009 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) further 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) a further tightening in credit markets etc... 23

24 APPENDIX GLOBAL BUSINESS PORTFOLIO Ireland United Kingdom Australasia No. 1 newspaper publisher No. 2 regional publisher Leading wholesaler & distributor of newspapers & magazines Leading news website No. 1 property website (ROI and N. Ireland) Leading recruitment portal Directory Publisher Publisher of Quality Nationals The Independent The Independent on Sunday Northern Ireland No. 1 newspaper publisher No. 1 commercial printer No. 1 wholesaler & distributor of newspapers & magazines No. 1 property website No. 1 news website No. 1 daily newspaper (New Zealand) No. 1 regional newspaper publisher No. 1 radio operator No. 1 outdoor advertising operator, with growing presence across Asia No. 1 news website (New Zealand) Leading commercial printer (New Zealand) Three market leading magazines (New Zealand) South Africa India Other Interests No. 1 newspaper publisher Leading community newspapers Leading commercial printer No. 1 outdoor advertising operator No. 1 news website No. 1 property website Leading magazine publisher No. 1 daily newspaper No. 1 read newspaper worldwide o 55.7 million readers weekly Leading outdoor advertising operator with Jagran Engage Leading events/below the line operator No. 1 Hindi language portal Independent Star Ltd. (Ireland) PT Abdi Bangsa (Indonesia) Tribune Newspapers Plc (Ireland) Verivox (Germany) Cashcade (UK) (Ireland) Truphone (UK) Imprezzeo Pty (Australia) A geographically unique and diverse portfolio of market leading assets 24