Caltagirone Editore S.p.a. · MIL:CED
Caltagirone Editore — Investor Presentation (November 2004)
28 slides from Caltagirone Editore's investor presentation, November 2004
Slide 1: Caltagirone Editore November 2004
C CALTAGIRONE EDITORE November 2004
Slide 2: Agenda
Agenda Company Overview Newspapers - products - strategy - industry overview - local strength Free press - products and strategy - industry overview - national strength Financials Outlook Appendix Il Messaggero headquarters in Via del Tritone, Rome 2
Slide 3: Company Overview: the Caltagirone group
Company Overview: the Caltagirone group • The Caltagirone group is a family-controlled industrial concern operating mainly in Italy • The group operates in three main business areas : construction & real estate, cement, media Caltagirone Family 7% 84% 34% 11% CALTAGIRONE S.p.A. 4% Treasury shares Mk
Slide 4: Company Overview: the Caltagirone Editore group
Company Overview: the Caltagirone Editore group SHAREHOLDERS STRUCTURE Vianini Lavori 4% Vianini Industria 3% Cementir 4% Market 30% Caltagirone S.p.A. Caltagirone Family 25% (*) 34% • The group started from construction and diversified into cement and media during the Nineties • Group strengths are
Slide 5: Company Overview: Caltagirone Editore products and services
Company Overview: Caltagirone Editore PRODUCTS Market position • 1.26 million daily readers • 678,000 daily readers • Daily circulation of • Sales 2003: € 157m • Sales 2003: € 59.6m 810,000 copies • Market share: 62% in Campania • Sales 2003: € 17.2m • Market share: 50% in Lazio SERVICES • Advertisi
Slide 6: Newspapers: the products
Newspapers: the products • National editions • National editions • 13 Local editions • 7 Local editions 6
Slide 7: Newspapers: strategy
Newspapers: strategy • National newspaper with high brand visibility • National newspaper with high brand visibility • 13 local editions • 7 local editions • Avg. 48 pages, with a maximum of 64 • Avg. 48 pages, with a maximum of 64 • Up to 24 color pages • Up to 24 color pages (from March 2004) • 4t
Slide 8: Newspapers: industry overview
Newspapers: industry overview Market Share – readership * (000 readers per day) LA REPUBBLICA 2704 Il Messaggero and Il Mattino have a market share of 50% in Lazio and IL CORRIERE DELLA SERA 2679 62% in Campania, respectively. LA STAM PA 1598 IL M ESSAGGERO 1267 IL RESTO DEL CARLINO 1198 LA NAZIONE
Slide 9: Newspapers: local strength
Newspapers: local strength Market Share in the Macroregion * Il Messaggero + Il Mattino 45.1% La Repubblica 21.0% Corriere della Sera 10.4% Il Tem po 5.5% Market share of 50% in Lazio Market share of 62% in Campania * Readers per day excluding financial and sports daily newspapers - Source: Audipres
Slide 10: Free press: products and strategy
Free press: products and strategy • 1st free newspaper in Italy with: - daily circulation of 810,000 copies - daily readership of 979,000 * • Average 24 pages in tabloid format Milano Venezia Padov • Launched in March 2001, expected to reach break-even by the end of 2004 a Torino Verona Bologna • Di
Slide 11: Free press: industry overview
Free press: industry overview Avg. Daily readers by region * • Free newspapers are present in 8 regions, accounting for 71% of Italian population • Avg. Daily readers of at least one free newspaper: 1,650,000 Lombardia Leggo: 212,000 Veneto Leggo: 90,000 Venezia Milano Padova Piemonte Torino Emilia
Slide 12: Free press: national strength
Free press: national strength Leggo is the #1 free newspaper in Italy National Avg. Daily readers * Leggo 979,000 City 734,000 Metro 692,000 * Source: Eurisko 2003 12
Slide 13: Industry Overview: profitability vs quoted peers
Industry Overview: profitability vs quoted peers Caltagirone Editore ranks as one of the most profitable media groups * EBITDA MARGIN 22.00% 22.10% 18.80% 18.20% 17.30% 14.25% 13.80% 14.20% 13.41% 11.74% 9.48% 8.20% 5.96% 5.20% 3.50% RCS POLIGRAFICI EDITORIALE MONDADORI GRUPPO EDITORIALE CALTAGIRONE
Slide 14: Financials: revenue breakdown
Financials: revenue breakdown Advertising is the main driver of Group revenue € milions Circulation Advertising Internet&Services Others 164 165 136 152 153 106 72 71 69 68 78 67 1998 1999 2000 2001 2002 2003 14
Slide 15: Financials: operating costs breakdown 2003
Financials: operating costs breakdown 2003 High proportion of services is due to: - in-house management of logistics - outsourcing of low-value added activities Other costs Raw Materials 16% 13% Services Personnel 36% 35% 15
Slide 16: Financials: 3Q 2004 highlights
Financials: 3Q 2004 highlights Jul-Sept Jul-Sept ∆% Circulation 2004 2003 Euro 000 Euro 000 Circulation 19.149 18.371 4,2% 3Q Highlights Jul-Sept Jul-Sept ∆% “Add-on” sales 1.399 1.151 21,5% of which: Euro 000 2004 2003 Net Sales 57.508 54.100 6,3% • Il Messaggero 1.030 697 47,8% • Il Mattino 369 45
Slide 17: Financials: first 9 months of 2004 highlights
Financials: first 9 months of 2004 highlights Jan-Sept Jan-Sept ∆% Circulation 2004 2003 Euro 000 Euro 000 Circulation 51.612 50.767 1,7% Jan-Sept Jan-Sept ∆% 9M 2004 2003 “Add-on” sales 9.964 8.042 23,9% Euro 000 Euro 000 Highlights of which: • Il Messaggero 6.007 5.694 5,5% Net Sales 192.844 180.7
Slide 18: Financials: first 9 months of 2004
Financials: first 9 months of 2004 Jan-Sept 2004 Jan-Sept 2003 ∆% Profit & Loss Account Euro 000 Euro 000 Circulation 61.576 58.809 4,7% Advertising 124.310 116.845 6,4% Other revenues 6.958 5.093 36,6% Total 192.844 180.747 6,7% Raw materials (18.927) (21.090) -10,3% Services (64.350) (58.070) 10,8
Slide 19: Financials: net financial position
Financials: net financial position Euro 000 30/09/04 31/12/03 30/06/04 Marketable securities 14 9 14 Cash/deposits 485.976 545.509 484.782 Long term borrowings (80.541) (82.358) (80.541) Short term borrowings (15.966) (21.187) (28.244) Net Financial Position 389.483 441.973 376.011 19
Slide 20: Financials: FY 2003
Financials: FY 2003 € millions Dec 31, 2003 Dec 31, 2002 YoY% Underlying ciculation revenue was flat Circulation 78 67 16% “Add on promotions” boosted circulation revenues by € 7.9m Advertising growth for Il Messaggero and Il Mattino was + 4.5%. Advertising 164 153 7% Leggo increased revenues by 28%
Slide 21: Results: profitability over time
Financials: profitability over time • Caltagirone • Strong cyclical upswing • Economic slowdown • Start of a new Group acquires • Strong advertising growth advertising upturn • Advertising demand fall Il Messaggero Facts • Reorganization of activities and completion of turnaround • New printing plan
Slide 22: Financials: breakdown by quarter
Financials: breakdown by quarter € millions 2 0 ,0 1 6 ,7 1 6 ,3 1 5 ,3 1 3 ,4 1 2 ,6 1 3 ,0 1 1 ,3 1 1 ,7 1 1 ,3 1 0 ,3 9 ,6 9 ,6 8 ,6 8 ,8 8 ,0 8 ,3 8 ,3 7 ,7 8 ,1 8 ,1 6 ,5 6 ,5 6 ,0 6 ,2 4 ,8 5 ,7 4 ,4 4 ,1 2 ,2 2 ,4 1 ,0 -0 ,6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2002 2003 2004 EBI T DA EBI T N e t
Slide 23: Financials: cash flow
Financials: cash flow € 29 m € (6) m € 498 m €9m € 442 m € (63) m € (25) m Operating Financial Capex * Interest Dividend Cash Flow investment income paid Net Cash Net Cash December 2002 December 2003 * 2003 Capex is unusally high due to one-off expenditure for new printing facility in Torrespaccata
Slide 24: Financials: market multiples
Financials: market multiples Adjusted firm value is 5.9x historical Ebitda € 805 m* € 248.7 m Adjusted EV €(442 m) € 317m = 1.3x Sales 2003 €(60m) Sales 2003 € 55 m Adjusted EV = 5.9x Ebitda 2003 Market Cap Net Cash 2003 Peripheral Assets Adjusted EV (2% stake inRCS Mediagroup + others) Ebitda 2003
Slide 25: Outlook
Outlook Circulation Flat/slight increase due to add-on sales Advertising Our strength in local advertising provided resilience during last cyclical downturn BUT being one of the top national players, we will benefit from any advertising upswing Cost control We aim at further improvement of existing
Slide 26: Appendix
C CALTAGIRONE EDITORE Appendix 26
Slide 27: Business mix
Business mix R C S M ED I A G R O U P G R U P P O E D IT O R IA LE L ' E S P R E S S O B OOK S OT H E R S INTERNET/ SERVIS OTHERS 3% 7% 16% 21% RADIO/ TELEVISION 5% M A GA ZI N E S MAGAZINES 19% 10% D A I LY N E W SP A P E R S FR E E P R E SS DAILY 43% NEWSPAPERS 1% 75% CALTAGIRONE EDITORE IN T E R
Slide 28: For further information
For further information www.caltagironeeditore.it INVESTOR RELATIONS Riccardo Rossetti Claudia Del Grosso Ronchitelli Contact Alessandra Crisari Tel. +39 06 45412213 Fax +39 06 45412288 investor.relations@caltagironeeditore.com 28
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