Slide 1: 2010 Annual Results
2010 Annual Results April, 2011
Slide 2: Agenda
Agenda • Executive Summary • The Th Group G • Leadership in traditional newspapers and free press • Advertising Italian market • Financial highlights • Caltagirone Group and main shareholders 2
Slide 3: Executive Summary
Executive Summary Since 2008 the printing industry has been facing a deep crisis which is challenging the traditional business model. Caltagirone Editore has been successful in tackling the current adverse trading environment coming out stronger than before, environment, before thanks to: • Better t
Slide 4: The Group: N.2 in the domestic market
Tne Group: N.2 in the domestic market (1) Caltagirone Editore is the 2nd Italian publishing group with 24.80% share of average daily readers (1) Avg. daily readers Data in thousands 6,622 Avg. daily readers 5,368 Avg. daily readers 4,670 Avg. daily 30,60% readers 2,442 24,80% 21 58% 21,58% 11,28% Gr
Slide 5: The Group: N.2 in the domestic market
Tne Group: N.2 in the domestic market (1) The Group publishes 4 titles among the first 15 in Italy 3290 2971 2093 1780 1698 1421 1410 1237 865 838 767 741 650 553 479 Avg. daily readers /1000 (1) Source: Audipress 2010/III excluding specialized newspapers (financial and sports) and including free pr
Slide 6: The Group: traditional newspapers and free press
The Group: traditional newspapers and free press Newspapers (1) New Media Advertising • National with 13 local editions • Readership 1,410,000 Advertising agency for • National with 7 local editions the Group • Readership 838,000 Branch dedicated to Internet • National with 8 local editions • Re
Slide 7: The Group: web and multimedia
The Group: web and multimedia In 2010 our websites audience kept growing and new platforms (Mobile and IPAD) have been launched, raising significant interest on our readers Title Internet website IPAD application Mobile – Iphone applications 9 9 9 9 9 9 9 9 9 9 9 9 7
Slide 8: Leadership in traditional newspapers and Free Press
Leadership in traditional newspapers and Free Press 8
Slide 9: CED has a strong local leadership
CED has a strong local leadership (1) Regions in which CED is #1 or # 2 in the market READERSHIP IN VENETO 37.8% Considerable presence (> 10%) Leggo’s gg presence p Gr. Espresso-Repubblica 41,9% Caltagirone Editore 37,8% Combined with local newspapers (2) Athesis 30,9% Rcs 13,3% 0,0% 5,0% 10,0% 15,0
Slide 10: Leadership in the Centre of Italy
Leadership in the Centre of Italy Group newspapers have a well-established leadership in the Macroregion(1) READERSHIP IN THE MACROREGION (2) 60.7% C lt i Caltagirone Editore Edit 60 7% 60,7% Rcs 27,9% Gruppo Espresso - 24,9% Repubblica Metro 13,0% Poligrafici Ed. 6,2% 0,00% 10,00% 20,00% 30,00% 40,
Slide 11: N.1 in the domestic market
N.1 in the domestic market Leggo is the first free newspaper in Italy with 1,780,000 avg. daily readers in 9 regions (1) LOMBARDIA 512,000 avg. daily readers VENETO Como Bergamo 158,000 avg. daily readers PIEMONTE Varese Verona 129,000 129 000 avg. avg daily readers Venezia / Mestre Brescia Milano P
Slide 12: N.1 in the domestic market
N.1 in the domestic market Leggo is leader in the free press market with 34.1%, 5% of daily readers more than City and 25% more than Metro (1) Avg. daily readers 1,780,000 1.780.000 1,698,000 1.698.000 1.421.000 1,421,000 318.000 318,000 Metro City Leggo Dnews (1) Source: Audipress 2010/III 12
Slide 13: Advertising Italian Market
Advertising Italian Market 13
Slide 14: Advertising Italian market 2007-2010
Advertising Italian market 2007-2010 (1) From 2007 to 2010 newspapers’ advertising expenditure decreased (from 20.2% to 16.2% of total) vis-a-vis TV (from 52.7% to 54%) and “new media” 8.83 9.69 8.21 8.55 € Billion 3,2% TRANSIT 5,4% OUT OF HOME TV 5,7% 3,7% 4,2% 4,9% 5,3% 5,5% DIRECT MAIL 15,0% 12,7
Slide 15: Newspapers advertising
Newspapers advertising (1) • In 2010 newspapers advertising expenditure declined by -2.6% (-0.2% national and -3.8% local), an improvement if compared to the strong decline of 2009 (-15.6% on 2008) and 2008 (-4.9% on 2007) € Thousands 1.623 1.530 1.564 1.537 1.563 1.543 1.302 1.268 812 756 795 720 7
Slide 16: Financial Highlights
Financial Highlights g g 16
Slide 17: Profit & Loss
Profit & Loss • Strong increase of Ebitda (+349%) and appreciable improvement of profitability (Ebitda/Operating revenues up from 2.4% to 11%) • Ebit increase of around € 39m from € -24.8m to € +13.9m Euro thousands 2010 2009 ∆% Circulation 79,842 82,952 -3.7% Promotion 2,282 3,628 -37.1% Advertisin
Slide 18: Circulation and advertising revenues' analysis
Circulation and advertising revenues’ analysis Circulation revenues (Euro thousands) 2010 2009 ∆% • Operating revenues declined due to Circulation 79,842 82,952 -3.7% a reduction of circulation revenues Promotions 2,282 3,628 -37.1% and a considerable decline of promotions, a common trend among Tota
Slide 19: Restructuring: operating costs dynamics
Restructuring: operating costs dynamics € Million CAGR 07 - 10 273.2 263.1 250.8 220.9 -6.8% 121,1 -6.5% 114,7 , 106 6 106,6 98,9 1,5 1,0 9,5 n.m. 2,0 111,5 110,4 -5.4% 102,2 94,4 39,1 37,1 32,4 25,6 -13.2% 2007 2008 2009 2010 Other operating p g costs Personnel extraordinary y charges g Personnel R
Slide 20: Financial strength: Net Financial Position
Financial strength: Net Financial Position € million 31.12.09 € 6.3 Dividend 31.12.10 distribution € 19.9 € 8.8 88 Net investments Net operating in listed cash flow companies € 226.3 € 208.9 20
Slide 21: Caltagirone Group and main shareholders
Caltagirone g Groupp and main shareholders 21
Slide 22: Caltagirone Group and main shareholders
Caltagirone Group and main shareholders* • Caltagirone Spa is a holding company which controls three different subsidiaries active in the cement, media and construction industries • 2010 Consolidated revenues achieved € 1.4 bn Mkt Cap Cap:: € 250m 66.7% 56.5% 25.5% 31.7% 35.6% CONSTRUCTION CEMENT ME
Slide 23: Disclaimer
Disclaimer This presentation is not intended as an offer or solicitation of an offer to purchase or sell any financial instrument and it is being distributed to professional f i l investors i t only l and d to t financial fi i l communityit It may not be reproduced, redistributed or published in who