3
2016 FY Results – Highlights
EUR million
20152016
EBITDA excl. Non Recurring
100,5 M€ 71,8 M€
NFP 366,1 M€ 486,7 M€
EBITDA 89,9 M€ 16,4 M€
Net Cash Flow excl. Disposals & Acquisition
41,8 M€ -55,6 M€
Net Result 3,5 M€ -175,7 M€
Last Positive
Net Result in 2010
4
2016 FY Results – Guidance achieved
EUR million
Target2016
Net Efficiencies 71,3 M€ 40-45 M€
EBITDA % excl. Non Recurring
~10,4% ~10%
Debt Ratio ~4x3.6x
Net Cash Flow Break even>40 M€
6
Risultati Consolidati: KPI Dicembre 2016M€
Q4 2016 Q4 2015 ∆% 2016 2015 ∆%
Total Revenue 258,9 10 0 % 289,1 10 0 % (10 ,4%) 968,3 10 0 % 1032,2 10 0 % (6 ,2%)
Circulation 89,6 97,0 (7 ,6%) 380,4 420,9 (9 ,6%)
Advertising 133,2 148 (10,0%) 451,2 475,5 (5 ,1%)
Other 36,1 44,1 (18,1%) 136,7 135,8 0,7%
EBITDA ex NR I tems 49,5 19 ,1% 53,1 18 ,4 % (6 ,8%) 100,5 10 ,4 % 71,8 7,0 % 40,0%
Non Recurring I tems (0 ,0 ) (42 ,5 ) (10 ,6 ) (55 ,4 )
EBITDA 49,5 19 ,1% 10,6 3 ,7% 367,0% 89,9 9 ,3 % 16,4 1,6 % 448,2%
EBIT 35,8 (33,0 ) 35,0 (107,0 )
Ne t Result 21 ,0 (49,3 ) 3 ,5 (175,7 )
NFP (366,1 ) (486,7 )
7
Q416 Q415 2016 2015 ∆%
Circulation 89,6 34,6% 97,0 33,6% 380,4 39,3% 420,9 40,8% (9,6%)
Advertising 133,2 51,4% 148,0 51,2% 451,2 46,6% 475,5 46,1% (5,1%)
Other 36,1 13,9% 44,1 15,3% 136,7 14,1% 135,8 13,2% 0,7%
TOTAL REVENUE 258,9 100% 289,1 100,0% 968,3 100% 1.032,2 100,0% (6 ,2%)
Operating costs (144,3) -55,7% (169,7) -58,7% (600,8) -62,1% (679,7) -65,8% (11,6%)
Non recurring costs 0,0% 0,0% 0,0% 0,0% #DIV/0!
Labour costs (65,1) -25,1% (66,4) -23,0% (266,9) -27,6% (280,7) -27,2% (4,9%)
EBITDA ex Non Recurring It ems 49,5 19,1% 53,1 18,4% 100,5 10,4% 71,8 7,0% 40,0%
Non Recurring Items 0,0 0,0% (42,4) -14,7% (10,6) -1,1% (55,4) -5,4% (80,9%)
EBITDA 49,5 19,1% 10,6 3,7% 89,9 9,3% 16,4 1,6% 448,4%
D&A (13,2) -5,1% (15,3) -15,0% (54,2) -5,6% (59,3) -5,7%
Impairment writeoffs (0,5) -0,2% (28,2) (9,8%) (0,7) -0,1% (64,1) (6,2%)
EBIT 35,8 13,8% (33,0) (11 ,4%) 35,0 3,6% (107,0) (10 ,4%)
Net financial incomes (charges) (6,5) -2,5% (8,5) -2,9% (30,0) -3,1% (36,3) -3,5%
PRE-TAX RESULT 29,3 11,3% (41,5) (14 ,4%) 5,0 0,5% (143,3) (13 ,9%)
Taxes (8,3) -3,2% (0,3) -0,1% (9,9) -1,0% 7,9 0,8%
NET RESULT FROM CONTINUING OPERATIONS 21,0 8,1% (41,8) (14 ,5%) (4,9) (0 ,5%) (135,4) (13 ,1%)
Net Result from Discontinuing and Discontinued Op. 0,0 0,0% (5,1) -1,8% 8,4 0,9% (38,8) -3,8%
Minorities 0,0 0,0% (2,4) -0,8% 0,0 0,0% (1,5) -0,1%
NET RESULT 21,0 8,1% (49,3) (17 ,1%) 3,5 0,4% (175,7) (17 ,0%)
Q4 & FY 2016 ResultsEUR million
Last Positive Net Result in 2010
8
Balance Sheet
EUR million
Net fixed assets 695,2 149,0% 745,0 125,9%
Tangible & Intangible fixed assets 502,9 107,8% 539,9 91,2%
Financial fixed assets 192,3 41,2% 205,1 34,7%
Net working capital (73,6) (15,8%) (64,2) (10,8%)
Reserve for risk and charges (114,9) (24,6%) (115,7) (19,5%)
Employee termination indemnity (40,2) (8,6%) (40,1) (6,8%)
Net invested capital: assets held for sale 66,8 11,3%
CAPITAL EMPLOYED 466,5 100,0% 591,9 100,0%
Net financial debt (cash) total 366,1 78,5% 486,7 82,2%
Net financial debt (cash) related to continuing operations 530,9 89,7%
Net financial debt (cash) of assets held for sale (44,2) (7,5%)
Equity 100,4 21,5% 105,2 17,8%
EQUITY & NFP 466,5 100,0% 591,9 100,0%
31/12/2016 31/12/2015
9
-486,7
-366,1
-23,9-39,7
NFP31/12/2016
+120,6
Operating Cash Flow (3)
+105,4
CAPEXOthers (2)Disposals, Acquisition (1)
NFP31/12/2015
+78,8
2016 Cash Flow
Cash flow representation as of management reporting
EUR million
(1) Including Books NFP deconsolidation(2) Non recurring items and other minor (3) Including dividends
-7VS PY
+90VS PY
+16VS PY
-7VS PY
+16VS PY
+99VS PY
11
2017E
RevenuesSlight increase net
of third parties publishers
EBITDA 140 M€
EBITDA % ~15%
Net Result Increasing Positive
Outlook 2017
Net Cash Flow Improving Positive
12
Outlook 2017
936
Target 2017
32Third party
RCS
2016
940-950
Excluding advertising
revenues coming from ceased
third party publishers with
little marginality, expected
revenues for 2017 are
exceeding the 2016 result.
13
Outlook 2017
• The first two months of the year show a significant improvement of
EBITDA of more than EUR 10 million compared to the same period of
the previous year, in line with the growth expectations for the year
• Ebitda improvement is also estimated for March compared to the same
2016 period.
January - February
16
Print cost ~15,0
Paper cost ~4,0
Set up sport events ~1,0
Publishing collaboration ~7,0
It ~6,0
Playout Digicast ~0,5
Saving 2016-2017: Italy + SpainEUR million
Distribution & transports ~7.5
Travel expenses ~3,5
Rental costs ~5,2
Consultancy, profess. serv. ~3,0
Facility management/Utilities ~3,0
Others * ~10,0
*Insurance, car fleet, canteen, taxi, newspapers & books, switchboard, ect
,0
18
• From October 2016: thorough review, enthusiastic readers and
advertising market reaction
Magazines
18
• From August 2016: most popular topics, new graphic, +37% in copies
(Yoy Jan-Feb 2017)
• From March 2016: L’economia, the new Monday economic attachement
characterised by innovative updated graphics and exclusive contents to offer
continuous, accurate and fast economic and financial information
19
Magazines
RCS - OGGI
Newsstand sales
First 10 issues
1.520.000
1.125.000
1.409.0001.481.000
20162014 2015 2017
20
Corriere della Sera
• Lo dico al Corriere: a new page by Aldo Cazzullo where the readers of
Corriere della Sera can share experiences and reflections.
• The newspaper also features the new column Il Caffè written by Massimo
Gramellini.
• From April 2017: every Thursday at the newsstands with a new editor,
Beppe Severgnini.
21
The week of Corriere della Sera
MON TUE WED THU FRI SAT SUN
ECONOMIA
• Free
• 48/56 pg
• National
LIVING
STYLE
• +0,50€
• National
• Monthly
VIVIMILANO
• Free
• 72 pag
• Local
IO DONNA
• +0,50€
• National
LA LETTURA
• +0,50€
• Optional
• National
SETTE
• +0,50€
• 116 pag
• National
22
«Grande» Gazzetta dello Sport
• 10 special issues during 2017 (one per month from
February) giving wide space to relevant national and
international sport events
• Increased print run
• Large foliation
• Wide Cover
• Supporting advertising campaign
• Additional advertising spaces to sell
23
Gazzetta dello Sport
• Geolocalization contents in order to maintain the circulation market share in
specific areas following customer needs:
• ATALANTA
• BOLOGNA/TORINO
• FIORENTINA/UDINESE
• HELLAS VERONA
• CAGLIARI
• BRESCIA/VARESE
• BARI
• PALERMO
• Add value through local edition with first page dedicated to each specific team
24
Spain
24
• Commercial Agreement including the creation of Marca Claro,
the Worldwide alliance for multimedia sports information in
South America
• Launch of a new magazine before summer 2017
• Major changes also for Marca and Radio Marca, with
completely renewed style and contents.
25
Disclaimer
Statements contained in this document, particularly the ones regarding any RCS MediaGroup possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties.
RCS MediaGroup actual results and developments may differ materially from the ones expressed or implied by the following statements depending on a variety of factors.Any reference to past performance of RCS MediaGroup shall not be taken as an indication of future performance.
This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned in any jurisdiction and is directed to professionals of the financial community.
Riccardo Taranto, the Manager responsible for drawing up the company’s accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the “Testo Unico della Finanza” (Legislative Decree n. 58/1998), that the information contained in this presentation corresponds to those one contained in the group’s documents and books accounting records.
Investor Relations Department
Forward-looking Statements
+39 02 2584 [email protected]
Paolo Gatti
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