Slide 1: 2005 Annual Results
C CALTAGIRONE EDITORE 2005 Annual Results May 2006
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This document has been prepared by Caltagirone Editore Group 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 verif
Slide 3: Agenda
AGENDA MAIN SHAREHOLDERS CORE ACTIVITIES TRADITIONAL NEWSPAPERS FREE PRESS - MAIN FEATURES - NATIONAL LEADERSHIP NEWSPAPER INDUSTRY OVERVIEW NEWSPAPERS: LOCAL STRENGTH COMPETITIVE ANALISYS RECENT HISTORY FINANCIALS STRATEGY: GROWTH OBJECTIVES APPENDIX Il Messaggero headquarter
Slide 4: Main Shareholders
MAIN SHAREHOLDERS FREE FLOAT 28,4% CALTAGIRONE SpA * 35,6% CALTAGIRONE FAMILY 36,0% NN° ° OF OFORDINARY ORDINARYSHARES: SHARES:125.000.000 125.000.000 MARKET MARKET CAP: € 920m**** CAP: € 920m * Direct/indirect holding through Capitolium SpA, Viafin srl and Ind 2004 srl 4 ** As of 04-05-2006; please
Slide 5: Core Activities
CORE ACTIVITIES TRADITIONAL NEWSPAPERS FREE PRESS • 1,366,000 daily readers (2) • Market share: 52.1% in Lazio (3) • 862,000 daily readers (2) • Market share: 58.4% in Campania (3) • 1.157.000 daily readers (1) • 2005 Sales: € 24m • 265,000 daily readers (2) • In 2005 opened in 6 new cities • Market
Slide 6: Traditional Newspapers
TRADITIONAL NEWSPAPERS STRONG TRADITIONAL NEWSPAPERS 1 NATIONAL EDITION + 13 LOCAL EDITIONS 1 NATIONAL EDITION + 8 LOCAL EDITIONS REGIONAL NEWSPAPERS ACQUIRED / CONSOLIDATED IN 2005 7 REGIONAL EDITIONS 3 EDITIONS: LECCE , BRINDISI, TARANTO LEADER IN MARCHE: 44.2% MARKET SHARE * LEADER IN SALENTO: 39
Slide 7: Traditional Newspapers
TRADITIONAL NEWSPAPERS NATIONAL NEWSPAPERS WITH HIGH BRAND VISIBILITY National newspaper with 13 local editions National newspaper with 8 local editions Avg. 50 pages up to maximum 64 pages, of Avg. 50 pages up to maximum 64 pages, of which 40 in full color (1) which 40 in full color (1) A
Slide 8: Free Press: Main Features
FREE PRESS: MAIN FEATURES 1 st free newspaper in Italy with daily readership of 1.157.000* Since 2005 over 1.050.000 copies distributed in 15 cities NEW CITIES IN 2005 MAIN FEATURES Genova, Como, Varese, • Launched in March 2001, reached about € 24m advertising revenue and Bergamo, Brescia, Bari bre
Slide 9: Free Press: National Leadership
FREE PRESS: NATIONAL LEADERSHIP In 2004, on a national basis, Leggo increased the daily readership by 18% to 1.157.000* Since 2005 over 1.050.000 copies distributed in 15 cities NEW CITIES FROM 2005: Lombardia Veneto Lombardia Bergamo, Brescia, Como, 38% increase in 2004 Varese 124.000 Avg. Daily re
Slide 10: Free Press: National Leadership
FREE PRESS: NATIONAL LEADERSHIP Leggo is the N. 1 free newspaper in Italy: 1.157.000* avg daily readers in 2004 (+18%) Since 2005 over 1.050.000 copies distributed in 15 cities NATIONAL AVG. DAILY READERS * +18,2% 2003 2004 1.157.000 +1.8% 979.000 -9.5% 692.000 734.000 747.000 626.000 Metro City Leg
Slide 11: Newspaper Industry Overview
NEWSPAPER INDUSTRY OVERVIEW IL MESSAGGERO AND IL MATTINO ARE AMONGST THE TOP 10 NATIONAL NEWSPAPERS* READERSHIP IN ITALY (000 READERS PER DAY)* LA REPUBBLICA 2958 IL CORRIERE DELLA SERA 2941 LA STAM PA 1547 IL M ESSAGGERO 1366 IL RESTO DEL CARLINO 1112 LA NAZIONE 918 IL M ATTINO 862 IL GAZZETTINO 80
Slide 12: Newspapers: Local Strength
NEWSPAPERS: LOCAL STRENGTH COMBINED MARKET SHARE IN THE MACROREGION (1) IS UNPARALLELED: 49,7% (2) … Il Messaggero + Il Mattino + 49,7% Il Corriere Adriatico La Repubblica 19,0% Corriere della Sera 9,7% 59.8% Il Corriere dell'Umbria 5,5% COMBINED MARKET SHARE IN MARCHE Il Centro 5,1% (3) *** Il Rest
Slide 13: Newspapers: Local Strength
NEWSPAPERS: LOCAL STRENGTH … AND EACH NEWSPAPER COMMANDS STRONG LOCAL MARKET SHARE * 52.1% 44.2% MARKET SHARE IN LAZIO* MARKET SHARE IN MARCHE* Il Corriere 44,2% Il Messaggero 52,1% Adriatico Il Resto del 34,1% La Repubblica 23,3% Carlino Il Messaggero 15,6% Il Corriere della Sera 9,6% 0,0% 10,0% 20
Slide 14: Competitive Analysis
COMPETITIVE ANALISYS CED RANKS AS THE MOST PROFITABLE MEDIA GROUP… 2002 2003 2004 2005 22,1% 22,6% 22,0% 21,4% 21,3% 20,6% 18,8% EBITDA MARGIN 17,3% 14,8% 14,3% 13,8% 13,5% 12,0% 12,5% 11,8% 11,7% 9,5% 8,2% 6,7% 5,2% R CS P OLI GR A FI C I E D I T OR I ALE M ON DA D OR I GRU P P O E D I T OR I A LE
Slide 15: Recent History
RECENT HISTORY PROFITABILITY OVER TIME 1997- 2000 2001 - 2003 2004 - 2005 • Strong advertising increase • Sharp domestic advertising decline • Slight increase in local • Reorganization of activities and advertising market completion of turnaround process • Further improvement in efficiency through l
Slide 16: Financials: Revenues Breakdown
FINANCIALS: REVENUES BREAKDOWN ADVERTISING IS THE MAIN DRIVER OF GROUP REVENUES Circulation Add on promotions Advertising Internet & Services Others 8.4 8.7 4.4 3.6 6.3 4 4 5 2.5 2 € MILLIONS 4 3 2 5 152 153 164 175 178 136 165 106 11 15 16 72 71 69 68 67 67 68 69 1998 1999 2000 2001 2002 2003 2004
Slide 17: Financials: Full Year 2005 Results
FINANCIALS: FULL YEAR 2005 RESULTS (Euro 000) 2005 2004* ∆% COMMENTS Circulation 85.231 83.367 2,2% Advertising 177.692 174.939 1,6% Circulation revenues improved mainly Other revenues 14.706 12.305 19,5% Total Revenues 277.629 270.611 2,6% due to add-ons Raw materials (28.148) (25.484) 10,5% In
Slide 18: Financials: Revenues Breakdown
FINANCIALS: REVENUES BREAKDOWN PROMOTIONS Promotions 2005 2004* ∆% (Euro 000) Il Messaggero 10.390 9.079 14,4% Il Mattino 4.795 5.794 -24,6% Corriere Adriatico 816 433 n.a. Quotidiano di Puglia 262 - n.a. Total 16.263 15.306 6,2% ADVERTISING Advertising 2005 2004 ∆% (Euro 000) Il Messaggero 102.733
Slide 19: Financials: Net Financial Position
FINANCIALS NET FINANCIAL POSITION (NFP) 31.12.05 NFP € 168,5 m 31.12.04 NFP € 4.2 m CASH FLOW FROM INVESTMENTS € 62,1 m € 481.8m FINANCING € 24,9 m DIVIDENDS OPERATING € 280.3m CASH FLOW 19
Slide 20: Strategy: Growth Objectives
STRATEGY: GROWTH OBJECTIVES CIRCULATION CIRCULATION Circulation flat, add on promotions provide growth INVESTMENT INVESTMENTIN IN ADVERTISING CORE VALUE ADVERTISING COREBUSINESS BUSINESS VALUE Organic as well as external CREATION CREATION Local advertising is more resilient in downturns growth while
Slide 21: Appendix
( ( Bd CALTAGIRONE EDITORE APPENDIX 21
Slide 22: The Caltagirone SpA Group
THE CALTAGIRONE SPA GROUP ¾ The Caltagirone SpA Group is a family-controlled industrial concern with aggregated sales over €1.3 bn (2005) ¾The Group holds financial investments in several quoted companies ¾The structure is the following: Mkt cap: cap: € 980 m (a) 62.1% 54.2% (b) 34.5% (c) 35.6% (d)
Slide 23: Investor Relations
www.caltagironeeditore.it INVESTOR RELATIONS E-mail: investor.relations@caltagironeeditore.com Tel. +39.06.454.12213 Fax +39.06.454.12288 23