Hurriyet Gazetecilik Ve Matbaacilik A.s. · BIST:HURGZ
Hurriyet Gazetecilik Ve Matbaacilik A.s — Hürriyet Gazetecilik ve Matbaacılık A.Ş. — Merger or Acquisition (January 2007)
25 slides from Hurriyet Gazetecilik Ve Matbaacilik A.s's merger presentation, Jan 4, 2007
Slide 1: Hürriyet announces recommended offer for Trader Media East
Hürriyet announces recommended offer for Trader Media East www.tmeast.com Announcement Presentation 4 January 2007 www.dyh.com.tr www.hurriyetcorporate.com
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR ANY RESTRICTED JURISDICTION. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, ANY SUCH RESTRICTIONS. This presentation is not intended to, an
Slide 3: Contents
Contents 1 Transaction Overview 2 Trader Media East At a Glance 3 Transaction rationale 2
Slide 4: Contents: Transaction Overview
Contents 1 Transaction Overview 2 Trader Media East At a Glance 3 Transaction rationale 3
Slide 5: Summary
Summary Hürriyet has reached agreement on the terms of a recommended offer for Trader Media East Offer Price : US$10 per share Implied Valuation for 100% of issued share capital : US$500m Trader Media East is a leading provider of print and online classified advertising in the Russian, CIS a
Slide 6: Summary
Summary Recommended cash offer of US$10.00 per TME share 23.5% premium to the volume-weighted average closing share price of US$8.10 for the three months ended on 19 December 2006, being the last Business Day prior to the announcement of an approach to TME 28.2% premium to the closing price of
Slide 7: Contents: Trader Media East at a glance
Contents 1 Transaction Overview 2 Trader Media East at a glance 3 Transaction rationale 6
Slide 8: TME at a glance
TME at a glance Leading provider of print and online classified advertising in the Russian, CIS and Eastern European region. Business activities include: Advertisements from private and business sellers Distributing ads physically or via the internet platform to reach potential buyers Classi
Slide 9: Trader Media East - key brands
Trader Media East - key brands Russia & the CIS Hungary Poland Croatia Generalist Iz Ruk v Ruki www.oglasnik.hr Szuperinfo Automotive Auto Photo www.auto-photo.ru Real estate www.realtyphoto.ru Recruitment Rabota Segodnya Other www.i2i-personals.com 8
Slide 10: Revenue distribution of acquired assets
Revenue distribution of acquired assets 2005 figures, 100% = US$198 million Online Poland 3% Croatia 3% (US$5m) 5% (US$6m) (US$10m) Hungary 23% (US$45m) Russia & the CIS Print 69% 97% (US$137m) (US$193m) TME has strong knowledge of media Potential growth of online revenues markets in Russia and Hung
Slide 11: Strong sales and EBITDA growth
Strong sales and EBITDA growth Figures in US$ million Sales 178 198 5% 2% 152 137 3% 23% 3% 6% 4% 28% 97 3% 30% 6% 17% 18% 3% 67% 69% 74% 66% 72% 2003 2004 2005 H1 2006¹ 9M YTD 2006¹ Operation EBITDA² 66 68 1% 5% 51 18% 1% 13% 1% 19% 80% 28 6% 81% 81% 13% 1% 79% 2003 2004 2005 H1 2006¹ Russia & CIS
Slide 12: Russia and the CIS—key operations
Russia and the CIS—key operations Overview Main operations in Russia and the CIS Long history in the region has helped establish strong, locally recognisable brands Main brand is Iz Ruk v Ruki which is printed daily and is read by c.2.5 million people 58 specialist regional publications Mo
Slide 13: Hungary—key operations
Hungary—key operations Overview Main operations in Hungary Main brand is Expressz which has a daily generalist and 5 weekly vertical publications Acquisitions of Mai Hirdetés and Ujpressz have further added to the portfolio Growth driven by Online (re-launch of expressz.hu website in 2006)
Slide 14: Croatia—key operations
Croatia—key operations Overview Main operations in Croatia Main brand is Oglasnik, with 5 weekly editions Growth driven by Online (affiliate site launched with the largest Croatian portal Iskon (now changed to net.hr)) Launch of new verticals (Oglasnik Automoto (vehicles) and Oglasnik Nekr
Slide 15: Poland—key operations
Poland—key operations Overview Main operations in Poland AutoFoto Biznes (or “Auto Business”) is one of the leading weekly automotive classified magazines in Warsaw Also publish Auto Bit, one of the leading weekly automotive publications in Krakow and Katowice One generalist website, kupsprz
Slide 16: Contents: Transaction rationale
Contents 1 Transaction Overview 2 Trader Media East at a glance 3 Transaction rationale 15
Slide 17: TME acquisition is consistent with Hürriyet's strategy
TME acquisition is consistent with Hürriyet’s strategy Acquisition of TME a major step in developing an international strategy “backbone” for Hürriyet Hürriyet’s strategy … … and TME fits Expand to new geographies with high margins TME is enjoying high margins in the rapidly growing and high gro
Slide 18: TME offers Hürriyet leadership in high growth international markets
TME offers Hürriyet leadership in high growth international markets Poland Russia&CIS Geographic presence post- acquisition Acquisition date 2000 Acquisition date 1996 2005 revenue (US$m) 6.1 2005 revenue (US$m) 136.6 Hürriyet post-acquisition of TME 2005 EBITDA (US$m) 0.5 2005 EBITDA (US$m) 54.8 EB
Slide 19: TME operates in some of the fastest growing markets
TME operates in some of the fastest growing markets GDP 2006-07 estimated growth Advertising expenditure 2006-07 estimated growth 9.5 28.7 7.8 7.1 6.9 6.5 5.9 5.0 (%) (%) 4.5 14.9 14.6 8.4 6.3 4.1 3.2 Hungary Croatia Asia/ Poland Russia US Turkey Western Russia Turkey Poland Hungary Asia/ US Western
Slide 20: Core TME markets offer significant growth opportunities
Core TME markets offer significant growth opportunities … Russia Hungary 10.6 3.2 8.4 2.9 2.7 2.5 6.5 (US$bn) 2.2 (US$bn) (%) 1.9 (%) 5.0 2.2 2.3 2.3 2.3 2.3 2.0 3.9 1.2 2.9 1.0 0.7 0.7 0.8 0.7 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Advertising expenditure Source: Zenith (Decemb
Slide 21: … and in online and digital development
… and in online and digital development Russia Hungary 5.2 49.5 4.7 4.3 36.6 3.6 (m) (m) 27.0 20.2 17.2 1.4 1.1 8.1 0.8 4.2 0.6 2.0 2005 2006 2007 2008 2005 2006 2007 2008 Estimated Internet users (m) Estimated Broadband users (m) Source: ACM Consulting Source: EIU, ITU (December 2006) Note: Penetra
Slide 22: Transaction highlights
Transaction highlights Leading Eastern European player in classified advertising Attractive high growth, high margin businesses International diversification of Hürriyet into high growth markets, with a clean, high quality asset Significant online growth potential and opportunities Operati
Slide 23: Doğan Yayın Holding – Business Structure by Segments
Doğan Yayın Holding – Business Structure by Segments Doğan Şirketler Grubu Holding A.S. “Dogan Holding” Doğan Yayın Holding Publishing (67%)1 Broadcasting(22%) Other (11%) Newspaper Newspaper Magazine&Book Printing TV Radio Online& Online& Others Publishing Publishing &Distribution Distribution *Hür
Slide 24: DYH: The Leading Content & Service Provider
DYH : The Leading Content & Service Provider Newspapers Magazines Broadcasting Internet Others Portal, ISP Yellow Pages Online Trading Retail E-Commerce Music Travel Distribution Job Search, Hurriyet News Agency Cable Classifieds Real Estate Alternative Telecom Auto Classifieds, Trading 23
Slide 25: Hürriyet Publishing Group
Hürriyet Publishing Group Leading publishing company in Turkey with: 540,000 daily sales (for Hürriyet daily) Publishing 4 dailies, including the country’s most well known media brand “Hürriyet” Leading ad medium with around 15% overall ad market share Owns and operates 8 high quality printi
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