Independent News & Media PLC
Interim Results 2001
5th September, 2001
GLOBALISATION DELIVERS CONTINUED GROWTH
• Global Portfolio of Leading Brands
• Market Leaders
• Strong Cost Management
• Prudent New Media Strategy & Execution
GLOBAL VISION
LOCAL CONTENT
Independent News & Media PLC
2001 HIGHLIGHTS
• Group Advertising Revenue
• Group Circulation Revenue
• Operating Costs tightly controlled
• Operating Margins
• €60m Irish production facility fully operational
• Successful integration of Belfast Telegraph Group
Independent News & Media PLC
HEADLINE NUMBERS
2001
2000
Euro'm
Euro'm
Change
%
(as restated)
Group Turnover
656.0
629.4
4.2%
Operating Profit *
109.3
96.3
13.5%
Profit Before Tax
57.6
69.6
-17.2%
Net Profit
29.1
34.0
-14.4%
Earnings per Share (EPS) **
7.68
7.53
2.0%
Dividend per Share (DPS)
2.75
2.50
10.0%
Weighted Shares Outstanding (m)
516.7
514.4
0.4%
Operating Margins
16.7%
15.3%
8.9%
* Continuing activities before exceptionals
** Before exceptional items and amortisation
Independent News & Media PLC
2001 SUMMARY BALANCE SHEET
30 June
30 June
2001
2000
Euro'm
Euro'm
(as restated)
2,653
2,106
118
49
(1,563)
(967)
1,208
1,188
Interest Cover (EBITDA/ Interest)
3.1x
4.5x
Net Debt to EBITDA
5.8x
4.0x
Fixed Assets *
Other Net Assets/ (Liabilities)
Net Debt
Total Shareholders' Funds
* Including the revalued elements of mastheads
Independent News & Media PLC
2001 SUMMARY OPERATING CASH FLOWS
2001
2000
Euro'm
Euro'm
Change
%
(as restated)
Operating Profits
Share of Associates & JVs
Depreciation & Amortisation
EBITDA
Working Capital Movements
Operating Cash Flow
Operating Cash Flow Conversion
101.8
96.3
5.7%
6.0
(0.4)
-
27.2
24.1
12.9%
135.0
120.0
12.5%
(6.4)
(10.6)
-39.6%
128.6
109.4
17.6%
95%
91%
4.5%
Independent News & Media PLC
H1 GROUP TURNOVER BY MARKET:
€656.0m
South
Africa
13%
United
Kingdom
19%
Ireland
26%
New
Zealand
20%
Australia
22%
Independent News & Media PLC
H1 GROUP PROFIT BY MARKET:
United
Kingdom
10%
€109.3m
South
Africa
8%
New
Zealand
22%
Ireland
35%
Australia
25%
Independent News & Media PLC
EARNINGS PER SHARE: 10 YEAR PERFORMANCE
Earnings per Share (€)
(Fully diluted before exceptionals & goodwill amortisation)
8.00
7.53
7.68
6.54
6.50
6.29
5.16
5.00
10 Year C.A.G.R.
•
•
•
•
•
Turnover
Operating Profit *
Pre-Tax Profit
Earnings Per Share
Dividends Per Share
+ 24%
+ 26%
+ 23%
+ 17%
+ 15%
4.45
3.88
3.50
2.94
2.40
3.31
2.00
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01
* Excluding exceptional items
Independent News & Media PLC
NEW ZEALAND DIVISION
COMPANY PROFILE
No. 1 NEWSPAPER publisher
Turnover
No. 1 REGIONAL publisher
No. 1 RADIO operator
No. 1 COMMERCIAL PRINTER
Turnover by Activity:
17%
2000 Change
138.7
140.0
-0.9%
EBITDA
37.1
34.0
9.1%
Operating Profit
27.4
25.4
7.9%
19.8%
18.1%
Operating Margin
No. 1 SECURITY PRINTER
18%
2001
€'m (constant FX)
2001 PERFORMANCE & OUTLOOK
1%
64%
•Marginal revenue decline compared to
strong H1 2000
•Compensated by strong cost management
•H1 2001 Operating Profits + 7.9%
Publishing
Radio
Print
New Media
•Full year of Shared Services benefits
•Revenues strengthening into H2 2001
Independent News & Media PLC
AUSTRALIAN DIVISION
COMPANY PROFILE
No. 1 REGIONAL publisher
Turnover
No. 1 OUTDOOR operator
No. 1 Australasian RADIO operator
JV in Pan TV’s World Movies
Growing Asian OUTDOOR business
Turnover by Activity:
20%
1%
2001
€'m (constant FX)
2000 Change
154.9
159.5
-2.9%
EBITDA
38.7
40.6
-4.7%
Operating Profit
30.8
32.0
-3.8%
19.9%
20.1%
Operating Margin
2001 PERFORMANCE & OUTLOOK
43%
•Tough advertising market in 1st half
•Continued tight cost control
•Operating Profits down compared to a very
strong H1 2000; Net Profit up
36%
Publishing
Radio
Outdoor
New Media
•Full year of Shared Services benefits
•Asian expansion on-track
Independent News & Media PLC
SOUTH AFRICAN DIVISION
COMPANY PROFILE
No. 1 METROPOLITAN/ NATIONAL
publisher (14 out of 25 titles)
Acquisition of No. 1 OUTDOOR
operator through new JV with
Clear Channel pending
No. 1 News & Current Affairs
Website
Turnover by Activity:
14%
1%
2001
€'m (constant FX)
2000 Change
Turnover
96.5
92.3
4.6%
EBITDA
12.7
11.8
7.6%
Operating Profit
10.7
9.5
12.6%
11.1%
10.3%
Operating Margin
2001 PERFORMANCE & OUTLOOK
•Revenue growth in 1st half
85%
•Strong cost management
•H1 2001 Operating Profits +12.6%
•Pending acquisition of Corpcom - EPS
enhancing
Publishing
Print
New Media
•Circulations: 10 out of 14 titles UP – all
competitors significantly down
Independent News & Media PLC
UNITED KINGDOM DIVISION
COMPANY PROFILE
2001
€'m (constant FX)
Leading NATIONAL titles in G.B. &
Northern Ireland
Turnover
No. 1 PUBLISHER in Northern Ireland
2000 Change
129.7
84.2
54.0%
EBITDA
14.8
1.0
-
No. 2 London REGIONAL publisher
Operating Profit
10.9
0.0
-
No. 1 London RECRUITMENT
magazine publisher
Operating Margin
8.4%
0.0%
No. 1 EDUCATIONAL COURSES
magazine publisher
Turnover by Activity:
11%
8%
6% 1%
2001 PERFORMANCE & OUTLOOK
•Core circulations & readership UP
74%
- The Independent readership up 28.4%
- Belfast Telegraph readership up 8.9%
•Aggressive cover pricing implemented
•Strong cost management
•Newsprint price reductions achieved in Q2
Nationals
Magazines
New Media
London Regionals
Print
Independent News & Media PLC
IRISH DIVISION
COMPANY PROFILE
No. 1 NATIONAL publisher
2001
€'m
Turnover
2000 Change
172.6
153.4
12.5%
No. 1 REGIONAL publisher
EBITDA
45.1
36.5
23.6%
No. 1 WHOLESALER/ DISTRIBUTOR
Operating Profit
39.6
33.0
20.0%
22.9%
21.5%
Operating Margin
Turnover by Activity:
21%
2%
2001 PERFORMANCE & OUTLOOK
77%
•Successful commissioning of CITYWEST
•Strong ADVERTISING growth & significant
gains in MARKET SHARE
•Strong CIRCULATION growth
Publishing
New Media
Wholesaling
-
Irish Independent achieves 18 year high
The Star achieves all-time high
•Strong cost management
Independent News & Media PLC
NEW MEDIA
• Prudent New Media strategy and execution
• Extension of core brands
• Pro-active cost management
-
Headcount down 43%
• Significant reduction in Operating Losses, as
forecasted
N EW MEDIA STATS
€'m
2001
Turnover
4.3
Operating Losses
(3.3)
Group Web Stats:
No. of Web Sites
Page Impressions / month
Headcount
2000
4.8
(7.2)
45
83m
46
57m
162
284
Independent News & Media PLC
iTOUCH PLC
• Excellent first half - 89% revenue growth on H2 2000
• Controlling costs – Q2 cash outflow only £1.8m,
same as Q1
• Growth continuing into 2nd half
• Well positioned for mobile future with:-
- Fully funded business model
- Powerful international relationships
- Strong cash position – Stg£44.2m in hand
Independent News & Media PLC
iTOUCH PLC - Global Spread
Strategic alliances with local media
providers and mobile network operators
Greece
Media Partner:
Network Operator:
Netmed & M-Web (MIH)
(Being negotiated)
Ireland
Media Partner:
Independent News & Media PLC
Network Operator: Eircell
Israel
Media Partner: Globes/Monitin
Network Operator: Cellcom,
Pelephone, MIRS
United Kingdom
Media Partner:
Network Operator:
Independent News & Media
(UK) Limited
Vodafone, BT Cellnet
Indonesia
Media Partner: M-Web & Astrada
(MIH)
Network Operator: Excelcomindo
Thailand
Media Partner:
Network Operator:
UBC & M-Web (MIH)
(Being negotiated)
South Africa
Media Partner:
Network Operator:
Independent News & Media
Vodacom and MTN
New Zealand
Australia
Media Partner:
Network Operator:
APN
Vodafone, Optus, Telstra, Orange
Media Partner:
Network Operator:
Wilson & Horton
Vodafone
Independent News & Media PLC
SUMMARY
• GEOGRAPHICALLY diversified - with tight focus on core
competencies
• Unique BRAND leadership positions - dominant in 4
out of 5 markets
• Advertising UP in contrast to competitors
• Circulations UP in contrast to competitors
• Major capital expenditure programme now COMPLETED
• HIGHLY cash generative business
• Clear strategy for operating margin ENHANCEMENTS
Independent News & Media PLC
OUTLOOK
• CORE businesses performing well
• ADVERTISING & CIRCULATION revenues trending UP
• Continued focus on COSTS
• GLOBAL diversity underpinning growth
Independent News & Media PLC
Independent News & Media PLC
Interim Results 2001
5th September, 2001
GLOBAL VISION
LOCAL CONTENT