Full Year Results 2001 17th April 2002 Independent News & Media PLC.

Full Year Results 200117th April 2002

Independent News & Media PLC

GLOBAL VISION LOCAL CONTENT

GLOBALISATION DELIVERING GROWTH

• Global Portfolio of Leading Brands

• Market Leaders

• Strong Cost Management

• Highly CASH generative business

• Circulation Revenue UP + 7.2%

• Newspaper Advertising Revenue only down (1.6%)But UP in constant currency by + 4.5%

• Operating Costs down despite Newsprint Price increase

• Operating Margins maintained at 2000 levels

• Successful €105m share placement

• Successful restructuring of Australasian assets

2001 HIGHLIGHTS

RESTRUCTURING OF AUSTRALASIAN ASSETS

• Sale of Wilson & Horton to APN News & Media

• Total cash gain on sale of €53.7m, with €32.5m recognised in P&L (39.5% deferred as inter-group)

• Cash received by Group of €455m less re-investment in APN of €241m; net inflow €214m

• Increased shareholding in APN to 44.55%

• EPS enhancing for both Independent & APN

• Opens new opportunities in Australasia

PEER GROUP COMPARISON – 2001

Newspaper Newspaper

Total Advertising Circulation Operating

Revenue Revenue Revenue Profit

Independent News & Media * - 0.1% - 1.6% +7.2% +0.0%

Trinity Mirror - Nationals - 2.4% - 4.2% - 0.1% - 0.19%

Hollinger - UK Newspapers - 9.0% - 10.6% - 1.2% - 49.9%**

Pearson - Financial Times - 5.1% - 20.0% n/ a - 27.0%

John Fairfax Holdings *** - 10.7% - 10.8% n/ a - 47.2%

West Australia Newspapers *** - 15.4% - 12.0% - 3.1% - 30.6%

New York Times Company - 10.6% - 15.7% +3.1% - 39.3%

Knight- Ridder Inc - 9.7% - 10.1% - 2.2% - 30.9%

* Excluding exceptionals and share of results of JV's & associates

** 12 months EBITDA

*** 6 months ended 31 December 2001

PEER GROUP EXCEPTIONAL CHARGES – 2001

Exceptional Charge

€ millions

Independent News & Media (90.1)

Trinity Mirror (268.3)

Hollinger (348.3)

Pearson (360.3)

News Corporation * (903.6)

Telewest (1,817.6)

AOL Time Warner (2,833.7)

Vivendi (12,640.0)

* 6 months

2001 2000 Change

€ millions € millions %(as restated)

Group Turnover 1,341.4 1,342.5 - 0.1%

Operating Profit * 218.4 218.4 0.0%

Net Exceptional Items (57.6) 3.0

Profit Before Tax 61.8 155.3 - 60.2%

Net Profit 3.1 80.8 - 96.2%

Earnings per Share (EPS) ** 12.50 15.92 - 21.5%

Dividend per Share (DPS) 7.75 7.50 3.3%

Weighted Shares Outstanding (m) 532.7 514.4 3.6%

Operating Margins * 16.28% 16.27% 0.08%

* Excluding exceptionals and share of results of JV's & associates

** Before exceptional items and amortisation

2001 HEADLINE NUMBERS

2001 SUMMARY BALANCE SHEET

31 Dec. 2001 31 Dec. 2000 Change

€ millions € millions € millions

(as restated)

Fixed Assets * 2,925 2,584 341

Other Net Assets/ (Liabilities) (2) 53 (55)

Net Bank Debt (1,056) (1,493) 437

Capital Lease Liabilities (249) (7) (242)

Total Shareholders' Funds 1,618 1,137 481

Interest Cover (EBITDA/ Interest) 2.7x 3.7x

Total Net Debt ** to EBITDA 4.8x 5.7x

* Including the revalued elements of mastheads

2001 SUMMARY CASH FLOWS

2001 2000 Change

€ millions € millions € millions

Operating Cash Flow 227.3 246.5 (19.2)

Interest & Minority Dividends (138.3) (111.8) (26.5)

Taxation (20.5) (37.7) 17.2

Capex & Financial Investment (120.1) (220.1) 100.0

Acquisition of Subsidiaries (32.7) (504.3) 471.6

Equity Dividends (38.1) (33.1) (5.0)

Share & Note Issues 325.4 7.2 318.2

FX Movement & Other (7.6) 22.7 (30.3)

Reduction/ (Increase) in Net Debt 195.4 (630.6) 826.0

South Africa12%

Ireland28%

New Zealand

21%

Australia21%

United Kingdom

18%

GROUP TURNOVER BY MARKET: €1,341.4m

GROUP PROFIT BY MARKET: €229.6m *

South Africa10%

Ireland32%

Australia25%

United Kingdom

7%

New Zealand

26%

* Excluding exceptional items

7.588.14

9.57

7.02

5.36

12.69

12.35

15.92

12.50

14.49

5.00

6.50

8.00

9.50

11.00

12.50

14.00

15.50

17.00

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01

10 Year C.A.G.R.• Turnover +

21%

• Operating Profit * + 27%

• Pre-Tax Profit + 21%

• Earnings Per Share * + 12%

• Dividends Per Share + 14%

Earnings per Share (€)(Fully diluted before exceptionals & goodwill

amortisation)

* Excluding exceptional items

EARNINGS PER SHARE: 10 YEAR PERFORMANCE

• Revenue up, driven by cover price and advertising rate increases

• Continuing strong cost management

• Strong performance from Radio

• Expansion of security printing to Australia

• Acquired by APN in Dec. 2001 & achieved targets in APN Explanatory Memorandum

• Revenues strengthening into 2002

No. 1 NEWSPAPER publisher

No. 1 REGIONAL publisher

No. 1 RADIO operator

No. 1 COMMERCIAL PRINTER

No. 1 SECURITY PRINTER

No. 1 News Website

Turnover by Activity1%17%

21%

61%

Publishing PrintRadio New Media

COMPANY PROFILE

2001 PERFORMANCE & OUTLOOK

€'m (constant FX) 2001 2000 Change

Turnover 292.7 282.4 3.6%

EBITDA 79.0 72.0 9.7%

Operating Profit 61.6 55.4 11.2%

Operating Margin 21.0% 19.6%

NEW ZEALAND DIVISION

• Tough advertising market in 2001 • Continuing tight cost control

• Achieved 2001 targets set out in APN Explanatory Memorandum

• Key tender & license wins for Outdoor & Radio

• Expansion into fast-growing Asian market on-track


No. 1 OUTDOOR operator

No. 1 Australasian RADIO operator

JV in Pan TV’s World Movies

Growing Asian OUTDOOR business

Turnover by Activity1%20%

39%

40%

Publishing OutdoorRadio New Media

COMPANY PROFILE



Turnover 306.9 325.1 - 5.6%

EBITDA 78.1 87.0 - 10.2%

Operating Profit 63.2 71.9 - 12.1%


AUSTRALIAN DIVISION

• Revenue growth from both circulation & advertising

• Circulations: 10 out of 14 titles UP – all competitors significantly down

• Strong cost management

• Outdoor Acquisition - EPS enhancing

• Realisation of Pension Fund surplus

No. 1 METROPOLITAN/ NATIONAL publisher (14 out of 25 titles)

No. 1 OUTDOOR operator (55% share) through acquisition of JV with Clear Channel

No. 1 News Current Affairs Website

Turnover by Activity

COMPANY PROFILE



Turnover 194.9 189.0 3.1%

EBITDA 31.1 28.7 8.4%



SOUTH AFRICAN DIVISION

1%10%89%

Publishing Print New Media

• Core circulations UP

• Aggressive cover pricing

• Attractive advertising readership profiles

• Strong cost control – headcount down 8.5%

• Newsprint price reductions achieved for 2002

Leading NATIONAL titles in G.B.

No. 1 PUBLISHER in Northern Ireland

No. 2 London REGIONAL publisher

No. 1 RECRUITMENT mag. Publisher

No. 1 EDUCATIONAL mag. Publisher


COMPANY PROFILE



Turnover 253.8 210.0 20.9%

EBITDA 25.4 16.1 57.8%



UNITED KINGDOM DIVISION

1%5%7%11% 76%

Nationals London RegionalsMagazines PrintNew Media

• Successful commissioning of CITYWEST

• Strong ADVERTISING growth & significant gains in MARKET SHARE

• Strong CIRCULATION growth- Irish Independent achieves 19 year high- The Star achieves all-time high

• Strong cost management & Newsprint price reduction

No. 1 NATIONAL publisher


No. 1 COMMERCIAL PRINTER

No. 1 WHOLESALER/ DISTRIBUTOR


2%22% 76%

Publishing Wholesaling

New Media

COMPANY PROFILE


€'m 2001 2000 Change

Turnover 370.9 335.9 10.4%

EBITDA 83.9 74.1 13.2%



IRISH DIVISION

NEW MEDIA

€'m 2001 2000Turnover 7.4 7.7Operating Losses (6.8) (10.0)

Group Web Stats: No. of Web Sites 51 48 Page Impressions / month 95m 100m

Headcount 158 203

NEW MEDIA STATS

• PRUDENT New Media strategy and execution

• Extension of CORE brands

• Pro-active costmanagement – Headcount

down 43% from high point

during 2001

• Significant REDUCTIONin losses, as forecasted

• Minimal investment exposure - €11.5m, excl. iTouch &

Chorus

• Excellent 2001 – 260% revenue growth on 2000

• Six consecutive quarters of good growth

• Controlling costs Cash outflow, excluding acquisitions, only Stg£7.7m

• Key acquisitions during 2001

• Growth continuing into 2002

• Well positioned for mobile future with:-

Fully funded business model – Stg£36.1m in handPowerful international relationships

• Carrying value supported by current market value

iTOUCH PLC

• GEOGRAPHICALLY diversified - with tight focus on core competencies

• Unique BRAND leadership positions - dominant in 4 out of 5 markets

• Major capital expenditure programme now COMPLETED

• HIGHLY cash generative business

• Significantly REDUCED exposure to New Media

• Clear strategy for operating margin ENHANCEMENTS

SUMMARY

OUTLOOK

• CORE businesses performing well

• CIRCULATION revenues trending UP

• ADVERTISING showing signs of vitality

• Continued focus on COSTS – ‘run rate’ down

• Interest costs DOWN

• GLOBAL diversity underpinning growth

• Cautiously optimistic for IMPROVEMENT on 2001

GLOBAL VISION LOCAL CONTENT

Independent News & Media PLCFull Year Results

200117th April 2002

Full Year Results 2001 17th April 2002 Independent News & Media PLC.

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Transcript of Full Year Results 2001 17th April 2002 Independent News & Media PLC.