Caltagirone Editore S.p.a. · MIL:CED
Caltagirone Editore — IPO Roadshow (June 2000)
38 slides from Caltagirone Editore's IPO roadshow presentation, June 2000
Slide 1: Caltagirone Editore Group Roadshow Presentation
June 2000 Caltagirone Editore Group Roadshow Presentation
Slide 2: Francesco Gaetano Caltagirone, Chairman
PSG\JUN00\ROADSHOW3(06).PPT Francesco Gaetano Caltagirone Chairman
Slide 3: Integrated Group with complementary areas of expertise
PSG\JUN00\ROADSHOW3(06).PPT Confidential Integrated Group with complementary areas of expertise Publishing Leader in the Center and South of Italy, covering 25% of Italian population Ÿ 1,350,000 daily readers Ÿ 828,000 daily readers Ÿ 4th in Italy Ÿ 8th in Italy Ÿ Leader in Lazio with a 47.2% Ÿ Lead
Slide 4: A successful turnaround story
PSG\JUN00\ROADSHOW3(06).PPT Confidential A successful turnaround story • Caltagirone • Turnaround and return to strong profitability of • Ready to exploit acquires Il publishing activities content on multi- Messaggero media platform • Strict cost control Actions and Il Mattino • Integrated group • A
Slide 5: A strong publishing business with a compelling internet potential
PSG\JUN00\ROADSHOW3(06).PPT Confidential A strong publishing business with a compelling internet potential A solid base ... Ÿ Extensive customer base: 2.2 million readers Ÿ Undisputed leader in the “Macroregion”, in Central and Southern Italy: 44.1% market share Ÿ High brand visibility (120 years of
Slide 6: Strong profitability and cash flow generation
PSG\JUN00\ROADSHOW3(06).PPT Confidential Strong profitability and cash flow generation Publicly traded publishing companies CEd Group’s cash EBITDA margin 1999 EBIT margin 1999 earnings1 ( mm) Class 32.6% Editori 26.8% Caltagirone 29.1% Editore 22.1% 16.8% L'Espresso 10.8% 37.5 14.5% 27.9 Mondadori
Slide 7: Future Strategy and Use of IPO Proceeds
PSG\JUN00\ROADSHOW3(06).PPT Confidential Future Strategy and Use of IPO Proceeds Ÿ Further internet related investment and expansion Ÿ Possible acquisition of other daily newspaper titles Ÿ Possible acquisition of a radio station or stations Ÿ Possible acquisition of television assets Ÿ Possible cre
Slide 8: Mario Delfini, Chief Financial Officer
PSG\JUN00\ROADSHOW3(06).PPT Mario Delfini Chief Financial Officer
Slide 9: Pro-forma consolidated summary financials
PSG\JUN00\ROADSHOW3(06).PPT Confidential Pro-forma consolidated summary financials % Growth €mm Dec 31, 1999 Jan-Apr 00 Jan-Apr 99 Sales 210.8 74.2 17.8% % growth 15.2% EBITDA 61.3 23.0 52.3% % margin 29.1% 31.0% Normalised EBIT1 52.1 20.3 67.8% % margin 24.7% 27.4% EBIT 46.6 18.7 81.6% % margin 22.
Slide 10: Advertising revenues drive CEd top-line growth
PSG\JUN00\ROADSHOW3(06).PPT Confidential Advertising revenues drive CEd top-line growth ... Total CEd revenues In 1999 advertising Other revenues accounted for 65% mm Advertising of CEd revenues Circulation • Average Italy: 210.8 1.7% 53% 183.0 175.7 2.5% 2.5% • Average USA: 87% 64.7% 54.7% 57.9% •
Slide 11: ... and translate directly into operating result through strict cost control
PSG\JUN00\ROADSHOW3(06).PPT Confidential ... and translate directly into operating result through strict cost control 11
Slide 12: Operating margins have steadily expanded
PSG\JUN00\ROADSHOW3(06).PPT Confidential Operating margins have steadily expanded EBITDA 61,3 Normalised EBIT 52,1 24,7% CAGR 54% 29,0% CAGR 74% ? mm ? mm % margin of total revenues % margin of total revenues 13,9% 18,0% 15,0% 9,9% 25,4 32,5 17,3 25,9 1997 1998 1999 1997 1998 1999 12
Slide 13: First four months interim results show continued expansion of advertising revenues
PSG\JUN00\ROADSHOW3(06).PPT Confidential First four months interim results show continued expansion of advertising revenues... Revenues ( mm) Circulation Advertising Other revenues 1,2 74.2 +17.8% 0,9 63.0 49,9 39,2 22,9 23,1 Jan-Apr 99 Jan-Apr 00 Note: 4 months 1999 financials are unaudited 13
Slide 14: ... resulting in further expansion of results
PSG\JUN00\ROADSHOW3(06).PPT Confidential ... resulting in further expansion of results ( mm) EBITDA Normalised EBIT +52.3% +68.1% 23,0 20,3 15,1 12,1 Jan-Apr 99 Jan-Apr 00 Jan-Apr 99 Jan-Apr 00 EBIT Net Income +81.8% +51.6% 18,7 9,7 10,3 6,4 Jan-Apr 99 Jan-Apr 00 Jan-Apr 99 Jan-Apr 00 14 Note: 4 mon
Slide 15: A. Majore
PSG\JUN00\ROADSHOW3(06).PPT A. Majore CEO of Il Messaggero Chairman and CEO of Il Mattino Chairman of Piemme
Slide 16: Nation-wide presence with strong focus in the Macroregion
PSG\JUN00\ROADSHOW3(06).PPT Confidential Nation-wide presence with strong focus in the “Macroregion” Top 10 Italian dailies 1 Ÿ 44.1% market share 1999 average no. of daily readers (‘000) in the Macroregion Corriere della Sera Ÿ Macroregion 2,738 accounting for 25% La Repubblica 2,685 of population
Slide 17: Dominant player in the Macroregion
PSG\JUN00\ROADSHOW3(06).PPT Confidential Dominant player in the Macroregion Percentage market share 1999 Il Messaggero + Il Mattino 44,1% Ÿ 47.2% market share in Lazio La Repubblica 18,3% 9,2% Corriere della Sera Ÿ 62.8% market share in Campania Il Tempo 7,9% 100% = avg. no. of readers per day in th
Slide 18: CEd has consistently outperformed the market in readership
PSG\JUN00\ROADSHOW3(06).PPT Confidential Ced has consistently outperformed the market both in readership ... Average no. of readers per day in 1997-1999 CAGR +1.8% +0.8% 1997-1999 -4.0% -4.0% (Million readers) (Million readers) CEd CEd in the Macroregion Total Italy Total Macroregion 2.18 24.60 2.10
Slide 19: ... and advertising growth
PSG\JUN00\ROADSHOW3(06).PPT Confidential ... and advertising growth A must for national and local advertisers +21.6% CAGR 1997-1999 +11.5% CEd dailies ad revenues mm Total ad on Italian dailies mm 136 1,480 104 1,336 92 1,190 1997 1998 1999 1997 1998 1999 Ÿ Outperforming sector growth 2-to-1 by leve
Slide 20: Ad revenues confirmed strong growth in first 4 months of 2000
PSG\JUN00\ROADSHOW3(06).PPT Confidential Ad revenues confirmed strong growth in first 4 months of 2000 CEd advertising revenues mm Jan-Apr 99 Jan-Apr 2000 + 21.0% 34,6 + 29.7% 28,6 13,1 + 286% 10,1 2,3 0,6 Il Messaggero Il Mattino Others 20
Slide 21: ... set to benefit from the expected expansion of the Italian market
PSG\JUN00\ROADSHOW3(06).PPT Confidential ... and are set to benefit from the expected expansion of the Italian market mm National Business CAGR n Local Business 1,800 +6.8% n Classified 1,480 1,336 1,190 1,004 816 721 625 375 282 305 253 312 333 359 421 1997 1998 1999 - 2002E Source: UPA, Nielsen 21
Slide 22: Francesco Caltagirone Jr., Chairman of Caltanet
PSG\JUN00\ROADSHOW3(06).PPT Francesco Caltagirone Jr. Chairman of Caltanet
Slide 23: The Italian market is poised for fast growth
PSG\JUN00\ROADSHOW3(06).PPT Confidential The Italian market is poised for fast growth Ÿ Italy currently represents 10% of the Western European on-line population, with 14.1 mm at year end 2000 Ÿ Penetration has lagged behind other European countries … Ÿ … but is now being pulled up by more web-advan
Slide 24: We aim to develop a strong presence throughout the entire internet value chain
PSG\JUN00\ROADSHOW3(06).PPT Confidential We aim to develop a strong presence throughout the entire internet value chain Content/ Portal Web Community/ Access - horizontal services E-commerce Commerce - vertical player Ÿ Free ISP Ÿ Own Ÿ Portal/ Ÿ Web design Ÿ B2C differentiating e-commerce Ÿ ADSL co
Slide 25: Leveraging synergies of media and new media businesses
PSG\JUN00\ROADSHOW3(06).PPT Confidential Leveraging synergies of media and new media businesses Complementarities and synergies from Group integration • Contents development Within CEd Publishing • Customer base • Distribution channel (e-commerce) • Advertising channel Advertising • Advertise intern
Slide 26: Building multiple revenue streams
PSG\JUN00\ROADSHOW3(06).PPT Confidential Building multiple revenue streams Web value- Caltanet.it Vertical Portals Virtual Mall added services Content-driven Transaction-driven End-use Advertising Other e-commerce 26
Slide 27: Caltanet will offer a number of targeted vertical portals
PSG\JUN00\ROADSHOW3(06).PPT Confidential Caltanet will offer a number of targeted vertical portals Launch of 6 vertical portals before year end Generalist portal Auctions & Announcements Finance & Investments Travel & Tourism Local Services Study & Work Real Estate Vertical Portals 27
Slide 28: Aggressively building critical mass
PSG\JUN00\ROADSHOW3(06).PPT Confidential Aggressively building critical mass Page views - Caltanet.it 600,000 500,000 400,000 300,000 Begin advertising 200,000 campaign Launch Caltanet.it 100,000 CD distribution 0 15-Apr-00 02-May-00 09-May-00 16-May-00 19-May-00 28
Slide 29: Banker
PSG\JUN00\ROADSHOW3(06).PPT Banker
Slide 30: Ownership structure
PSG\JUN00\ROADSHOW3(06).PPT Confidential Ownership structure Before IPO After IPO1 Vianini Vianini Industria Lavori S.p.A. S.p.A. 4.0% Caltagirone 5.0% Market 28.0% Family 36.1% Cementir Vianini S.p.A. Industria 6.0% S.p.A. 2.9% Vianini Lavori S.p.A. 3.6% Cementir S.p.A. Caltagirone Caltagirone Calt
Slide 31: Offer structure
PSG\JUN00\ROADSHOW3(06).PPT Confidential Offer structure The Company Caltagirone Editore S.p.A Offering Global offering: approximately 30 mm shares Size Greenshoe: up to 5 mm shares (free float of 28% if greenshoe fully exercised) Shares offered Ordinary shares, 100% primary issue One global institu
Slide 32: ... and translate directly into operating results through strict cost control
PSG\JUN00\ROADSHOW3(06).PPT Confidential … and translate directly into operating results through strict cost control ( mm) Revenues Operating costs -0.8 +1.1 +7.3 +27.8 210,8 158,4 157,6 158,7 175,3 183,0 1997 1998 1999 1997 1998 1999 Normalised EBIT +26.7 57,1 +8.1 25,4 17,3 1997 1998 1999 32
Slide 33: Spare Pages
PSG\JUN00\ROADSHOW3(06).PPT Confidential SPARE PAGES 33
Slide 34: Efficient structure positioned to benefit from the industry's structural evolution
PSG\JUN00\ROADSHOW3(06).PPT Confidential Efficient structure positioned to benefit from the industry’s structural evolution A solid base ... Macroregion i Undisputed leadership in the Macroregion i Extensive readership base i Dailies’ brand visibility and high customer retention (120 years of histor
Slide 35: Positioning Caltanet as a facilitator of e-transactions
PSG\JUN00\ROADSHOW3(06).PPT Confidential Positioning Caltanet as a facilitator of e- transactions (B2C and B2B) Firms’ Information Systems e-commerce Solutions Integration Support Editor, Financing, Legal Infrastructure Information, Transactions, Advisory e-buyers IT Infrastructure for clients/ e-se
Slide 36: Compelling business strategy focused on maximising content potential
PSG\JUN00\ROADSHOW3(06).PPT Confidential Compelling business strategy focused on maximising content potential • Consolidate leadership position of publishing business in the Macroregion Leading media Publishing & player in the Advertising • Expand in contiguous markets Italian market • Expand in rad
Slide 37: Successful turnaround story
PSG\JUN00\ROADSHOW3(06).PPT Confidential Successful turnaround story Caltagirone Turnaround and return Ready to exploit acquires to strong profitability of content on multi- Il Messaggero publishing activities media platform and Il Mattino Strict cost control Integrated group Advertising growth Adve
Slide 38: Portal strategy
PSG\JUN00\ROADSHOW3(06).PPT Confidential Portal strategy Segmentation of online users by level of competence Ÿ Attract new Internet users Today + – Focus on higher-growth, under- served market segments Tomorrow – Develop a tailored, user-friendly nce proposition – Maintain a dynamic relationship ete