Caltagirone Editore S.p.a. · MIL:CED
Caltagirone Editore — Investor Presentation (April 2004)
25 slides from Caltagirone Editore's investor presentation, April 2004
Slide 1: Caltagirone Editore April 2004
ed CALTAGIRONE EDITORE April 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% 88% 34% 11% CALTAGIRONE S.p.A. Mkt cap: cap: € 570m
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
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 • Launched in March 2001, expected to reach break-even by the end of 2004 Venezia Milano Padova Torino Verona • Distributed
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 M ONDADORI GRUPPO EDITORIALE CALTAGIRON
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 2002
Financials: operating costs breakdown 2002 High proportion of services is due to: - in-house management of logistics - outsourcing of low-value added activities OTHER COSTS 4% RAW M ATERIALS 17% PERSONNEL 42% SERVICES 37% 15
Slide 16: 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 17: Financials: profitability over time
Financials: profitability over time • Caltagirone Group acquires Il • Strong cyclical upswing • Economic slowdown • Start of a new advertising Messaggero and Il Mattino • Strong advertising growth upturn • Advertising demand fall Facts • Reorganization of activities and completion of turnaround • Ne
Slide 18: Financials: breakdown by quarter
Financials: breakdown by quarter € millions 1 6 .7 1 6 .3 1 3 .4 1 2 .6 1 1 .3 1 1 .7 1 1 .3 1 0 .3 9 .6 8 .6 8 .3 8 .0 8 .1 8 .1 7 .7 6 .5 6 .0 6 .2 4 .8 5 .7 4 .4 4 .1 1 .0 -0 .6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2003 EBI T DA EBI T N e t I n c o m e ( c o n t in u in g ) 18
Slide 19: Financials: breakdown by quarter
Financials: breakdown by quarter p r o f it a b ilit y r a t io s 25.0% 22.5% 23.9% 20.5% 17.4% 18.5% 15.9% 13.6% 13.3% 16.9% 15.2% * Q3 2003 margin figures are not directly 10.8% 9.7% comparable due to first time inclusion 10.9% 11.5% of new printing plant depreciation. 8.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 *
Slide 20: 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 21: 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 Ebitda 2003 (2% stake inRCS Mediagroup + others)
Slide 22: 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 e
Slide 23: Appendix
(( C 3 \ CALTAGIRONE EDITORE Appendix 23
Slide 24: Business mix
Business mix G R U P P O E D I T O R I A LE L' E S P R E S S O R C S M ED I A G R O U P INTERNET/ SERVIS OTHERS B OOK S OT HE RS 3% 7% 16 % 2 1% RADIO/ TELEVISION 5% MAGAZINES 10% M A GA Z I NE S 19 % FRE E P RE S S DAILY NEWSPAPERS DA I LY NE W S P A P E RS 1% 75% 43% C A LT A GIR ON E ED IT OR E I
Slide 25: For further information
For further information www.caltagironeeditore.it INVESTOR RELATIONS Riccardo Rossetti Claudia Del Grosso Ronchitelli Tel. +39 06 45412213 Tel. +39 06 45412213 Fax +39 0632493326 Fax +39 06 45412288 r.rossetti@caltagironeeditore.com c.delgrosso@caltagironeeditore.com Contact Alessandra Crisari Tel.
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