Hurriyet Gazetecilik Ve Matbaacilik A.s. · BIST:HURGZ
Hurriyet Gazetecilik Ve Matbaacilik A.s — Hürriyet Gazetecilik ve Matbaacılık A.Ş. — Investor Presentation (September 2011)
76 slides from Hurriyet Gazetecilik Ve Matbaacilik A.s's investor presentation, Sep 22, 2011
Slide 1: Investor Presentation London, 22-23 September 2011
Investor Presentation London, 22-23 September 2011
Slide 2: Notice
Notice • This presentation does not constitute an offer or invitation to purchase or subscription for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. • The information contained in this document has not been indepen
Slide 3: Agenda
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 3
Slide 4: Corporate Structure
Corporate Structure Corporate Structure Doğan Yayın Holding (DYH) • Major shareholder of Hurriyet. • Largest Turkish media conglomerate, with core businesses of publishing and broadcasting. 66.6% •Listed in Istanbul Stock Exchange. Hürriyet • #1 publishing & printing group in Turkey. • 37% ad market
Slide 5: Milestones in Hürriyet’s history
Milestones in Hürriyet’s history • 1948 - Established • 1954 - Started classifieds, still leading with 65% market share • 1969 - Operations in Germany started • 1992 - IPO of 10% in ISE (at 70 mn $ market cap.) • 1994 – Shares acquired by Doğan Group • 1995 - Ad revenues reached $ 100 mn • 1996 - 6
Slide 6: Milestones in TME’s history
Milestones in TME’s history • 1992- The first issue of Iz Ruk v Ruki came out in Moscow • 1993 - Iz Ruk v Ruki started to coming out in regions • 1998 - Pronto Moscow acquired by Trader Classified Media • 2004 - Online operations started • 2004 - Croatia joined the group • 2005 - TME established, co
Slide 7: Business Overview
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 7
Slide 8: A true regional leader with operations in countries
A true regional leader with operations in 10 countries, over 310 mn population and around US$ 16 bn ad market… CIS Russia Kazakhstan, Belarus, Ukraine Population (mn) 143 Population (mn) 72 2010 Revenue (US$mn) 106 2010 Revenue (US$mn) 21 2010 EBITDA (US$mn) 19 2010 EBITDA (US$mn) 5 Eastern Europe H
Slide 9: Trader Media East - Business Highlights
Trader Media East - Business Highlights • Leading print & online classified business in Russia & CIS and CEE countries with history • 5.2 mn circ.* dating back to 1984 • 15.2 mn UMVs* • 17% of revenue generated through online as of 1H11 • Key publications and sites focus on real estate, cars and job
Slide 10: Business Model of TME - Creating Local Marketplaces
Business Model of TME - Creating Local Marketplaces Multi-Channel Comprehensive Local Ad Collection Ad Distribution Real General Vehicles Jobs Estate Merchandise Kiosks Trader Media East Paid Circulation Local Brands I I B Local Call Centres Free Circulation B N N U U S D Local Agencies D S S B L E
Slide 11: Hürriyet Group - Business Structure
Hürriyet Group - Business Structure Publishing Printing Online 79%* 14%* 7%* Hürriyet Germany 11 * Percentage of revenues as of FY10.
Slide 12: Publishing
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 12
Slide 13: Publishing daily newspapers under Hürriyet Group
Publishing 3 daily newspapers under Hürriyet Group • Publishing 3 dailies • Hürriyet: the most well known and influential media brand in Turkey • Radikal: political newspaper, recently re-launched under Hürriyet umbrella • Hürriyet Daily News: published in English • Total circulation of 502 K * • St
Slide 14: Flagship of Turkey’s newspapers
Flagship of Turkey’s newspapers Historical Market Leader Most Influential Media Brand - Distant #1 newspaper wth an ad market share of 37% - One of the oldest and most established newspaper and media - #2 ad market share among all media players brand in Turkey since 1948 - Unique and sustainable pow
Slide 15: Attractive readership profile leading to strong market share
Attractive readership profile leading to strong market share Circulation Market - 2010 Circulation (‘000): 495 449 354 238 183 176 151 142 137 10.7% 9.7% Others Hürriyet Group 7.6% 42% 2010 Ad Market Share 38% 5.1% 3.9% 3.8% 3.2% 3.1% 2.9% Doğan Gazetecilik 20% 1 2 3 4 5 6 7 8 9 Hürriyet Newspaper R
Slide 16: TME: Around 170 publications
TME: Around 170 publications Russia & CIS Eastern Europe • Deep regional presence with operations in more than 90 • Market-leading business in Hungary, Croatia and cities - market leader in Moscow and all other major metro- Slovenia areas • Expressz: a dominant player of Hungary both in print • One
Slide 17: Printing
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 17
Slide 18: Printing infrastructure with a capacity of 1.2 mn copies/hour
Printing infrastructure with a capacity of 1.2 mn copies/hour İstanbul Trabzon Capacity (copy/hour) 385 Capacity (copy/hour) 65 Closed area (m2) 18,600 Closed area (m2) 3,500 Ankara Capacity (copy/hour) 180 Closed area (m2) 15,000 İzmir Capacity (copy/hour) 180 Closed area (m2) 16,700 Frankfurt Anta
Slide 19: Online
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 19
Slide 20: Online market: the fastest growing ad medium all over the world
Online market: the fastest growing ad medium all over the world Internet Ad Market Other $ 66 bn • Total internet ad. expenditure 2011E: $ 72 bn 14% TV • 3rd biggest advertising medium in World (15% Internet 2011 $ 190 bn share in total) – Already the 2nd biggest in US $ 72 bn 15% World 41% and UK A
Slide 21: Hürriyet operates in an underpenetrated geography
Hürriyet operates in an underpenetrated geography... Internet penetration rates* Countries of operation of Hürriyet West European countries 80% 82% 70% 62% 65% 62% 46% 50% 49% 43% 44% 34% 34% Belarus Hungary Ukraine Spain Germany Croatia Italy France Kazakhstan Russia UK Turkey Slovenia • Internet i
Slide 22: Expected 2011 Online Ad Market Growth
… promising high and sustainable growth in online 45% Russia Bubble Size: Online % 40% in Total Ad Market 78% Western Europe Avg. Expected 2011 Online Ad Market Growth 35% Slovenia 30% Ukraine Turkey 25% Belarus 20% Spain Croatia Germany 15% Sweden 11% 10% France England 5% Hungary Holland 0% 30% 40
Slide 23: Strong presence in countries, with websites
Strong presence in 10 countries, with 40 websites News Generalist Auto Real Estate Recruitment Community E-commerce Other Turkey Russia, Ukraine, Belarus & Kazakhstan Hungary Croatia Slovenia, Serbia & Bosnia 23
Slide 24: Turkey
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 24
Slide 25: Diversifying online revenues with new categories
Diversifying online revenues with new categories Hürriyet Online Revenues CAGR (07-11): +14% 30.1 TL mn +6.5% 25.1 21.4 20.0 13.2 17.6 12.4 2007 2008 2009 2010 2011P 2010 1H 2011 1H 8% Content & 36% Community 45% 2007 Classified 2011 P Verticals 64% 47% E-retail 25
Slide 26: Hurriyet.com.tr: Europe’s 4th biggest newsportal
Hurriyet.com.tr: Europe’s 4th biggest newsportal • Leading news portal of Turkey, one of the most visited websites since 1997 • 24 mn UMVs • 1 bn page views • Europe’s 4th newspaper site according to Comscore • 8th most visited site and 3rd most visited Turkish site according to Alexa • Traffic CAGR
Slide 27: Hürriyet WebTV: Category leader with striking figures
Hürriyet WebTV: Category leader with striking figures • # 1 video website with its audience and number of videos watched, according to ComScore July 2011 • 28.5 mn videos watched monthly; 50% of the videos watched until the end • Monetization models; introducing subchannels like TeknoTV including pr
Slide 28: Hürriyet Mobile & Tablet Applications
Hürriyet Mobile & Tablet Applications • 800 K mobile UMVs • 63 K tablet readers & +3 K paid subscribers – 10% convergence rate to paid subscription • Hürriyet Ipad application continuously in top10 ipad apps since its launch. • Hürriyet android tablet application coming in October 2011 28 *Statistic
Slide 29: Hurriyetemlak.com: the biggest local realtor in Turkish market
Hurriyetemlak.com: the biggest local realtor in Turkish market • #1 real estate classified website • 57 mn page views • 1.9 mn unique visitors • Home page of RE agencies, with 8,500 clients (+8% CAGR in 2 years) • 850 K ads (+11% CAGR in 2 years) • 607 K members 2.5 1.0 2.0 0.8 1.5 0.6 1.0 0.4 0.5 U
Slide 30: Yenibiris.com: One of the leading recruitment portals in Turkey
Yenibiris.com: One of the leading recruitment portals in Turkey • Re-launched in April 2005 • 30 mn page views • 1.2 mn unique visitors • Covering over 6 mn CVs (80% active CVs) • 84 K corporate clients • +15% CAGR for number of CVs and +21% CAGR for number of corporate clients, in the last 2 years
Slide 31: Yakala.co: our new iniative in coupons & deals category
Yakala.co: our new iniative in coupons & deals category • Launched in the last quarter of 2010 • One of the earliest movers • “deal-of-the-day” website already reaching +43 K members • 3 mn page views • 0.8 mn unique visitors • Deals for 7 cities • +23% monthly growth rate for UMVs and +36% monthly
Slide 32: Yenicarsim.com: a new opportunity for Hürriyet to grow in online
Yenicarsim.com: a new opportunity for Hürriyet to grow in online and to diversify • Launched as of Sep 11 (beta) • B2C e-commerce platform for new items (e- marketplace) • Already 134 shops, soon to be +450 • 103 K items in 24 categories • Comission based business model with no inventory and no logi
Slide 33: E-platform - Market Landscape
E-platform - Market Landscape B2C & new items Transaction Platform C2C & second hand E-retail Market in Turkey • Total e-transaction (inc. retail, Private airlines, event tickets, insurance, Shopping etc) volume reached to 15.2 bn TL in 2010 (+48% vs. 2009). • Growth expectations for the next few ye
Slide 34: TME Region
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 34
Slide 35: TME: the biggest classified player in Russia, CIS & CEE region
TME: the biggest classified player in Russia, CIS & CEE region TME Online Revenues 29.3 +36.5% CAGR (07-11): +19% $ mn +57% 12.4 18.5 18.7 14.5 14.5 8.6 2007 2008 2009 2010 2011P* 2010 1H 2011 1H 18% Moscow 5% 47% Russian Regions 2007 50% 2011 P 54% CIS CEE 23% 3% 0% 35 *Projection: 8 Actual + 4 For
Slide 36: Irr.ru: #1 player in classifieds in Russia
Irr.ru: #1 player in classifieds in Russia • Leading generalist website; 20+ categories • Also a leading vertical in Real Estate, with 1 mn ads • Strong brand recognition within Russia & CIS* • The only national player in classifieds with regional presence in 94 cities (closest competitor in 2 citie
Slide 37: Up to 50% of Russian internet audience visit IRR.ru
Up to 50% of Russian internet audience visit IRR.ru ... 9 Jul 11: 8 UMV 7.4 mn 7 • Sustainable traffic growth: 6 5 • 3x increase in last 2 years without any mn 4 Jul 09: 2.5 mn marketing campaigns 3 2 • Loyal customer base with a 4 visit/UMV 1 0 Oct-07 Oct-08 Oct-09 Oct-10 Apr-07 Apr-08 Apr-09 Apr-1
Slide 38: Distinguishable in the market by traffic quality, content and monetization
Distinguishable in the market by its traffic quality, content and monetization capability Traffic Quantity of content Target Freshness Generic Traffic % of content Traffic B2C Target C2C Monetization 38
Slide 39: Job.ru: the best place for the right job and right candidate
Job.ru: the best place for the right job and right candidate • Main focus on small and medium sized companies • Broad editorial content • Providing consultancy & statistics of Russian job market • #3 in Russian recruitment market • Up to date database of 1.8 mn CVs – 15-20 K new CVs everyday • One o
Slide 40: Rapid traffic increase since its re-launch
Rapid traffic increase since its re-launch Jul 11: 4.0 UMV relaunch 3.2 mn 3.5 3.0 • 90% traffic growth since December 2009 2.5 • 180 K UDVs as of July 2011 mn 2.0 1.5 • Loyal customer base with a 3.5x views/visit 1.0 0.5 0.0 Oct-07 Oct-08 Oct-09 Oct-10 Jan-07 Apr-07 Jan-08 Apr-08 Jan-09 Apr-09 Jan-
Slide 41: Differentiated from peers by the degree of its regionalization
Differentiated from peers by the degree of its regionalization Functionality Regionalization Candidate qualifications SMEs Corporates 41
Slide 42: Macro Environment & Ad Market
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 42
Slide 43: Fast recovery in Turkey’s ad market
Fast recovery in Turkey’s ad market, in line with strong economic growth Turkey’s GDP Growth (yoy) Turkey’s Ad Market Growth (yoy) 37% 38% 32% Total ad market Newspaper ad market 27% 12.2% 11.6% 10.2% 9.2% 20% 20% 19% 8.8% 7.0% 14% 14% 5.9% 5.3% 12% 11% 13% 12% 7% 8% 7% 8% 2.6% 5% 0.9% -5% -2.8% -7.
Slide 44: Turkish advertising market in segments
Turkish advertising market in segments Internet Internet Cinema Cinema 10% 10% 1% 1% Outdoor Outdoor 7% 9% Radio Radio 3% TV TV 2% Magazine 1H 10 53% +19% Magazine 1H 11 53% 3% 3% Newspaper Newspaper 23% 22% % in 08-09 % in 09-10 % in 1H10-11 % in mn TL 2009 total 2010 total 1H 10 total 1H 11 total
Slide 45: Outlook of Russian ad market
Outlook of Russian ad market Russia’s GDP Growth (yoy) 9.3% 7.7% 6.6% 5.2% 4.5% 4.1% 3.1% 3.1% 0.0% -3.8% -7.7% -9.4% -10.8% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Russia’s Ad Market 14 0.72% 0.8% 0.67% 0.66% 0.71% 0.69% 12 0.64% 0.62% 0.7% 11.8 0.67% 0.57% 0.66% 0.6% Ad Sp
Slide 46: 1H11 Financial Review
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 46
Slide 47: 1H11 Financial Results: Summary
1H11 Financial Results: Summary • Consolidated revenues increased by 8%, to TL Revenues (TL mn) 430 mn, in 1H11. • Revenues from both Hürriyet domestic +8.3% operations and TME operations increased by 506 around 8%. 386 397 430 406 • Online revenues rose by 28%; especially the 323 growth in TME onli
Slide 48: 1H11 Consolidated IFRS Results
1H11 Consolidated IFRS Results mn TL FY10 1Q11 2Q11 2Q10 YoY% Ch. 1H11 1H10 YoY% Ch. Total revenues 794.2 190.3 239.5 219.4 9.2% 429.8 397.0 8.3% Ad revenues (print)1 472.3 108.5 148.2 135.4 9.5% 256.8 235.4 9.1% Ad revenues (online) 53.2 14.3 18.3 14.2 28.8% 32.6 25.5 27.9% Circulation revenues 114
Slide 49: 1H11 IFRS Results: Hürriyet excluding TME
1H11 IFRS Results: Hürriyet excluding TME mn TL FY10 1Q11 2Q11 2Q10 YoY% Ch. 1H11 1H10 YoY% Ch. Total revenues 579.3 138.4 176.1 161.4 9.1% 314.5 290.7 8.2% Ad revenues (print) 1 329.5 76.5 107.2 97.5 9.9% 183.6 166.2 10.5% Ad revenues (online) 25.1 5.9 7.3 7.0 4.8% 13.2 12.4 6.8% Circulation revenu
Slide 50: Ad market in Turkey
Ad market in Turkey* Total Ad Market (TL mn) +18.5% 2,293 1,935 1H10 1H11 TV Advertising (TL mn) Newspaper Advertising (TL mn) +18.6% +11.5% 499 1,214 448 1,023 1H10 1H11 1H10 1H11 * Ad market statistics are estimates compiled by DYH ad platform , based on 25 national newspapers. 50
Slide 51: Print advertising revenue
Print advertising revenue Print Ad Revenue (TL mn) +9% +9% 135 148 257 235 41 38 +8% +6% 73 69 98 107 166 184 +10% +10% 2Q10 2Q11 1H10 1H11 • Growth in print advertising revenue in both domestic and TME operations continued in 2Q11 with a similar trend as the first quarter of the year. • For Hürriye
Slide 52: Online revenue
Online revenue Online Revenue (TL mn) +29% +28% 18.3 32.6 14.2 25.5 +52% +48% 11.0 19.4 7.2 13.1 +5% +7% 7.0 7.3 12.4 13.2 2Q10 2Q11 1H10 1H11 52
Slide 53: Circulation market
Circulation market * National Circulation (000) Hürriyet Circulation (000) 4,709 +3.7% 4,882 462 -3.2% 447 1H10 1H11 1H10 1H11 Circulation Revenue (TL mn) -6% 59 55 • Hürriyet newspaper’s circulation market 12 8 share was 9.2% in 1H11. -31% •There has been no change in cover prices 46 +1% 47 in 1H11
Slide 54: Cost analysis: cash costs
Cost analysis: cash costs Cash costs (TL mn)* +15% 190 +13% 360 165 319 55 105 50 +10% 94 +11% 115 136 225 255 +18% +13% 2Q10 2Q11 1H10 1H11 • Main reasons behind the increase in cash costs in 1H11: • increase in newsprint prices. • TL depreciation • costs related to new businesses: Radikal newspape
Slide 55: Cost analysis: operating expenses
Cost analysis: operating expenses Sales, marketing and General administrative distribution costs (TL mn) costs (TL mn) +0.2% +12% 61 61 80 71 10 12 +26% +4% 48 46 51 48 -5% +27% 25 32 1H10 1H11 1H10 1H11 • Despite the ongoing promotion activity in Turkish newspaper market, Hürriyet managed to reduce
Slide 56: Cost analysis: cost of sales
Cost analysis: cost of sales Cost of Sales (TL mn) Raw material costs (TL mn) +14% +16% 267 108 234 93 62 23 54 +15% 21 +12% 180 205 73 85 +14% +17% 1H10 1H11 1H10 1H11 Hürriyet 1H10 1H11 YoY (Ch.) • For Hürriyet newspaper, average newsprint price in 1H11 Average number of pages 82 83 1 was around 2
Slide 57: Cost analysis: personel cost
Cost analysis: personel cost Personel costs (TL mn) +15% +16% 61 122 53 105 +3% 21 +8% 43 20 40 33 +23% 41 66 +21% 79 2Q10 2Q11 1H10 1H11 • Hürriyet : • wage adjustment in the beginning of 2011, in line with inflation. • increase in the headcount due to the new online initiatives and Radikal Newspap
Slide 58: Net Debt Position
Net Debt Position mn TL 31/12/2010 30/06/2011 Cash and Equivalents 124 180 S.T Bank Borrowings 203 207 L.T Bank Borrowings 221 221 Net Cash / (Net Debt) -300 -248 Investments 35 15 Supplier Loans 82 79 mn $ 31/12/2010 30/06/2011 Cash and Equivalents 80 110 S.T Bank Borrowings 131 127 L.T Bank Borrow
Slide 59: Loan repayment schedule
Loan repayment schedule Loan repayment schedule (principal payment, mn USD) * July-December 2011 2012 2013 Hürriyet TME Total Hürriyet TME Total Hürriyet TME Total Bank Loans 49.6 0 49.6 101.2 0 101.2 37.0 70.0 107.0 Supplier Loans 9.9 0 9.9 19.7 0 19.7 16.4 0 16.4 Total 59.5 0 59.5 120.9 0 120.9 53
Slide 60: TME: Consolidated statements of operations (IFRS)
TME: Consolidated statements of operations (IFRS) mn $ 1H11 1H10 YoY (%) Sales 73.6 70.1 5% Cost of sales -39.5 -35.5 11% Marketing, selling and distribution expenses -8.2 -6.9 19% General administrative expenses -24.6 -26.8 -8% Other income / expense, net 0.7 0.5 40% Operating profit 2.0 1.4 43% Fi
Slide 61: Revenue Growth by Regions – TME standalone
Revenue Growth by Regions – TME standalone % Ch. % Ch. % Ch. % Ch. mn $ 2Q10 2Q11 1H10 1H11 (USD) (LCY) (USD) (LCY) Russia 28.4 31.7 12% 4% 51.8 56.6 9% 4% Moscow* 15.1 15.9 6% -2% 27.3 28.0 3% -2% Other Russia 13.3 15.8 19% 10% 24.5 28.5 17% 11% CIS 5.6 5.1 -8% 2% 10.1 9.9 -2% 4% CEE 4.0 3.8 -5% -1
Slide 62: Online Revenue Growth by Regions – TME standalone
Online Revenue Growth by Regions – TME standalone % Ch. % Ch. % Ch. % Ch. Online Revenue (mn $) 2Q10 2Q11 1H10 1H11 (USD) (LCY) (USD) (LCY) Russia 3.4 5.2 56% 45% 5.9 9.0 52% 45% Moscow* 3.2 4.1 30% 21% 5.6 6.9 22% 16% Other Russia 0.2 1.1 465% 423% 0.3 2.2 546% 514% CIS 0.2 0.4 76% 115% 0.4 0.7 91%
Slide 63: EBITDA by Regions – TME standalone
EBITDA by Regions – TME standalone % Ch. % Ch. mn $ 2Q10 2Q11 1H10 1H11 (USD) (USD) Russia 5.4 5.1 -4% 8.4 6.0 -29% Moscow* 2.8 1.5 -46% 4.5 2.1 -53% Other Russia 2.5 3.6 42% 3.9 3.9 0% CIS 1.5 1.2 -15% 2.3 1.8 -19% CEE -0.03 0.3 N.A -0.2 0.5 N.A Operational EBITDA 6.8 6.7 -1% 10.5 8.4 -20% Corporat
Slide 64: EBITDA Margins by Regions – TME standalone
EBITDA Margins by Regions – TME standalone mn $ 2Q10 2Q11 pp ch. 1H10 1H11 pp ch. Russia 18.9% 16.2% -3% 16.3% 10.6% -6% Moscow* 18.8% 9.7% -9% 16.5% 7.5% -9% Other Russia 19.0% 22.7% 4% 16.1% 13.8% -2% CIS 26.3% 24.3% -2% 22.5% 18.6% -4% CEE -0.7% 8.8% 10% -2.9% 7.2% 10% O. EBITDA Margin 17.9% 16.5
Slide 65: Outlook
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 65
Slide 66: Outlook
Outlook Print advertising revenue for Hürriyet domestic operations is expected to grow by around 1 10% in 2011. Online advertising revenue from domestic operations is expected to increase by 20% in 2 2011. 3 TME revenue is expected to grow by 8% in 2011. EBITDA margin is expected to be around 17%-18
Slide 67: Back up Slides
• Corporate Overview 3 • Business Overview 7 • Publishing 12 • Printing 17 • Online 19 • Turkey 24 • TME Region 34 • Macro Environment & Ad Market 42 • 1H11 Financial Review 46 • Outlook 65 • Back up Slides 67 67
Slide 68: Hürriyet’s major advertisers
Hürriyet’s major advertisers Sectors 1H10 1H11 Real Estate 17% 20% Classifieds (incl. HR) 11% 10% Retail 8% 9% Automotive 8% 8% Tourism 7% 7% Social 7% 6% Finance 7% 5% Entertainment, Culture, art & sports 4% 3% Textile 3% 3% Furniture & Home Textile 3% 3% First 10 Total 74% 74% Others 26% 26% 68
Slide 69: Circulation in Turkey
Circulation in Turkey Peak of promotion 2008-09 2001 campaigns global crisis mn economic mn crisis 6.0 0.7 5.0 0.6 0.5 4.0 0.4 3.0 0.3 2.0 0.2 1.0 0.1 - - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H11 Total Hurriyet 69
Slide 70: Newsprint prices
Newsprint prices Average Newsprint Costs (US$) * 817 769 747 740 684 737 661 619 563 631 501 492 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H11 * Including all costs and expenses like custom duties, transportation etc. 70
Slide 71: Rapid increase in the share of online ad revenues
Rapid increase in the share of online ad revenues Online share in ad revenue 6% 8% 10% 11% 12 2008 2009 2010 1H11 % Online revenues (mn TL) CAGR 2006-2010 53 70% 45 42 33 6 2006 2007 2008 2009 2010 71
Slide 72: A summary of leading websites of Hürriyet Group in Turkey
A summary of leading websites of Hürriyet Group in Turkey UMV Monthly PV Time Comscore August 2011 Category Launch Date ('000) ('000) / visit Ranking # Hürriyet.com.tr News 1997 23,730 1,022,732 0:11:51 1 Classified Hürriyet Emlak 2006 1,917 57,454 0:08:47 1 Real Estate Classified Hürriyet Oto 2007
Slide 73: A summary of leading websites of TME
A summary of leading websites of TME UMV Monthly PV # of ads Traffic July 2011 Country Category Launch Date ('000) ('000) ('000) Ranking # Russia, Belarus, IRR Generalist 2005 7,352 230,919 2,038 2 Kazakhstan Classified - Job.ru Russia, Belarus 2000 3,208 50,432 75 3 Recruitment Expressz.hu Hungary
Slide 74: Valuation
Valuation * HURGZ share price 2.5 Max: 2.31 2.0 1.5 1.0 Now: 0.99 Mcap: $ 306 mn 0.5 Min: 0.79 0.0 160 Relative Performance (12 months) 140 120 100 90 80 60 61 40 HURGZ IMKB-100 20 0 74 * as of 19.09.2011
Slide 75: Corporate Governance & Credit Rating
Corporate Governance & Credit Rating •Proven track record of shareholder value and corporate governance principles since 1992 •Fitch rating for Hürriyet as of January 2011: • Foreign Currency : ‘B+’ ; Rating Watch Negative • Local Currency • Long term : ‘B+’ ; Rating Watch Negative • National long-t
Slide 76: Investor Contact
Investor Contact http://www.hurriyetcorporate.com http://www.dyh.com.tr http://www.tmeast.com ir@hurriyet.com.tr (90) 212 449 6030 76
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