Slide 1: 2006 Annual Results
C CALTAGIRONE EDITORE 2006 Annual Results May 2007
Slide 2: Disclaimer
Disclaimer This document has been prepared by Caltagirone Editore S.p.A. for information purposes only and it is not intended as an offer or solicitation of an offer to purchase or sell any financial instrument. Any forward-looking statement on Group performance has not been independently verified a
Slide 3: Agenda
Agenda The Group N. 2 in the domestic market The Group: traditional newspapers and free press Traditional newspapers The acquisition of “Il Gazzettino” Traditional Newspapers Italian newspapers industry Newspapers advertising market The first 15 Italian newspapers Strong local le
Slide 4: The Group
The Group 4
Slide 5: N.2 in the domestic market
N.2 in the domestic market Caltagirone Editore is the 2nd Italian publishing group with 23.9% share of average daily readers (1) Daily readers Data in thousands 6,059 Daily readers 5,376 Daily readers 4,268 Daily readers 26,94% 2,350 23,90% 18,97% 10,45% Gruppo Editoriale L’Espresso (1) Source: Audi
Slide 6: The Group: traditional newspapers and free press
The Group: traditional newspapers and free press Traditional newspapers (1) Advertising Free Press Il Messaggero Circulation 229,471 Readership 1,433,000 2,008,000 daily readers (2) l Mattino Advertising agency for the 2006 Sales: € 25 millions Group Circulation 86,465 National network
Slide 7: Traditional newspapers
Traditional newspapers National newspaper with 13 local editions Avg. 50 pages up to maximum 72 pages full color National newspaper with 8 local editions Avg. 50 pages up to maximum 64 pages, of which 40 in color National newspaper with 8 local editions Avg. 50 pages up to maximum 64 pag
Slide 8: The acquisition of Il Gazzettino
The acquisition of Il Gazzettino With Il Gazzettino di Venezia acquisition, CED becomes the 2nd Italian publishing Group with over 5.4 millions of readers (1) Strategy Expansion of the Group in the North Eastern part of Italy and stronger competitive position in the Adriatic regions The deal
Slide 9: Traditional newspapers
Traditional newspapers 9
Slide 10: Italian newspapers industry
Italian newspapers industry Readership has been growing gradually over the last few years 25 8,0% Avg. daily readers (millions) CAGR 02-06 = 3.63% 23 7,0% 21 6,0% 19 5,0% 17 4,0% 15 22,49 3,0% 13 20,53 21,41 19,50 20,44 2,0% 11 1,0% 9 0,0% 7 5 -1,0% 2002 2003 2004 2005 2006 (2) Traditional newspaper
Slide 11: Newspaper advertising market
Newspaper advertising market (1) In 2006 both national and local advertising market trended upwards € thousands 1,800 10% 1,728 1,720 1,767 1,679 5% 0% 951 912 952 976 878 -5% 441 458 473 478 498 -10% -15% -20% 2002 2003 2004 2005 2006 National Commercial Local Commercial Newspapers % change nationa
Slide 12: The first 15 Italian newspapers
The first 15 Italian newspapers (1) CED is the 2nd Italian Group by readers, with 4 titles among the first 15 La Repubblica 3015 Il Corriere della Sera 2577 Leggo 2008 City 1691 Metro 1647 La Stampa 1457 Il Messaggero 1433 Il Resto del Carlino 1168 La Nazione 867 Il Mattino 757 Il Giornale 709 Il Ga
Slide 13: CED has a strong local leadership
CED has a strong local leadership (1) READERSHIP IN VENETO Regions in which CED is leader 40.2% Considerable presence (> 10%) Il Gazzettino 29,5% Leggo’s presence (> 4%) (2) Arena 14,6% Giornale Vicenza 13,9% Mattino di Padova 11,9% Leggo 10,6% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% READERSHI
Slide 14: Leadership in the Centre and North East of Italy
Leadership in the Centre and North East of Italy Group newspapers have strong readership in the North East and in the central regions of Italy (1) READERSHIP IN THE MACROREGION (2) READERSHIP IN 55.3% VENETO + FRIULI VENEZIA GIULIA 35.1% (3) Il Messaggero 24,3% La Repubblica 16,6% Il Gazzettino 26,7
Slide 15: Free Press
Free Press 15
Slide 16: Free press: the market
Free press: the market Free press is continuing to gain market share from traditional newspapers (1) 3 % of total circulation 2 2 27,3% 1 25,1% 26,1% 22,6% 23,2% 20,2% 17,6% 1 7,1% 0% 0 1999 2000 2001 2002 2003 2004 2005 2006 E 2007E Free press share of circulation (1) Source: ADS and Eurisko data.
Slide 17: N.1 in domestic market
N.1 in domestic market Leggo is leader in the free press market with 37.6% share of avg. daily readers, 19% more than City and 22% more than Metro (1) Avg. daily readers 2,008,000 1,647,000 1,691,000 Metro City Leggo (1) Source: Audipress 2006/II 17
Slide 18: Free Press: Leggo
Free Press: Leggo is the 1st free newspaper in Italy with 2,008,000 avg daily readers in 9 regions (1) LOMBARDY 595,000 avg. daily readers VENETO PIEMONTE Como Bergamo 205.000 avg. daily readers Varese Verona 242,000 avg. daily readers Torino Venezia / Mestre Brescia Milano Padova EMILIA ROMAGNA 96.
Slide 19: Financial highlights
Financial highlights 19
Slide 20: Profitability over time
Profitability over time 2001 - 2003 2004 - 2005 • Sharp domestic advertising • Slight increase in local 1997 - 2000 decline advertising market • Strong advertising increase • Further improvement in • Leggo adv. revenue increase • Reorganization of activities and efficiency through labor and successf
Slide 21: Financial highlights
Financial highlights Advertising is the main revenue driver Circulation Promotions Advertising Internet & Services Others € millions 6.0 8.4 8.7 8.1 4.4 3.6 6.3 4.0 4.0 5.0 2.5 4.0 2.0 3.0 2.0 5.0 192.3 106 136 165.0 152.0 153.0 164.0 175.0 177.7 20.2 11.0 15.0 16.3 72.0 71.0 69.0 68.0 67.0 67.0 68.
Slide 22: Financial highlights: full year 2006
Financial highlights: full year 2006 Euro thousands 2006 (1) SEP Group 2006 2005 ∆% Circulation 83,842 14,608 98,450 85,231 15.5% Revenues improved thanks to Advertising 178,412 13,821 192,233 177,692 8.2% “Il Gazzettino” consolidation Services 8,101 1 8,102 6,269 29.2% since H2 2006 Other revenue
Slide 23: Financial highlights: full year 2006
Financial highlights: full year 2006 Circulation revenues (Euro thousands) 2006 2005 ∆% Circulation 78,266 68,968 13.5% Promotions 20,184 16,263 24.1% • Il Messaggero 12,478 10,390 20.1% • Il Mattino 4,053 4,795 -15.5% • Corriere Adriatico 942 816 15.4% • Quotidiano di Puglia 217 262 -17.2% • Il Gaz
Slide 24: Financial highlights: full year 2006
Financial highlights: full year 2006 Net Financial Position on December 31st, 2006 31.12.05 € 37.5 Dividend distributed € 194.6 31.12.06 € 39 € 481.8 Il Gazzettino Net operating acquisition cash flow (1) € 288.7 (1) Including extraordinary capex of around € 9 millions 24
Slide 25: Appendix
Appendix 25
Slide 26: Main shareholders
Main shareholders FREE FLOAT 29,8% CALTAGIRONE SpA (1) 35,6% EDIZIONE HOLDING 2,24% CALTAGIRONE FAMILY 32,4% N° of ordinary shares: 125,000,000 Market capitalization: € 810 millions (2) (1) Indirectly through Edigolfo spa (2) As of May 18, 2007 26
Slide 27: Caltagirone Spa
Caltagirone Spa ¾ Caltagirone Spa is a holding company which controls three different subsidiaries active in the cement, media and construction industries ¾ 2006 consolidated sales achieved around € 1.5 bn ¾ The Group structure is the following: Mkt cap: cap: € 1049m (a) 66.7% (b) 56.5% (c) 31.7% 35
Slide 28: Investor Relations
www.caltagironeeditore.com INVESTOR RELATIONS E-mail: investor.relations@caltagironeeditore.com Tel. +39 06 45412213 Fax +39 06 45412288 28