2009 Financial Reporting
Financial Report Media Conference from 15 April 2010 Martin Kall and Sandro Macciacchini, Tamedia AG
1 Financial Reporting 2009, 15 April 2010 Annual Report 2009: Overview
Martin Kall Chief Executive Officer
2 Financial Reporting 2009, 15 April 2010 Strong Drop in Revenues and Earnings During 2009 Financial Year
in MCHF EBIT margin* 2008 15.0% -14% 1.000 2009 6.7% 890 900 2008 2009 800 766 700 600 500 400 -45% -61% 300 -56% 168 200 134 92 106 100 52 47 0 Revenues EBITDA EBIT Net income *The respective figures refer to the continued operations
3 Financial Reporting 2009, 15 April 2010 Decrease Mirrors Prolonged Financial Crisis…
Change of real GDP in per cent Consumer climate index (index points) 6% 30
4% 15 0 2% -15 0% -30 01.08 07.08 01.09 07.09 01.10 -2% -45 01.07 07.07 01.08 07.08 01.09 07.09 01.10 -4%
Unemployment rate in per cent of labour force Private consummation change in per cent 4.5% 4% 4.0% 3% 3.5% 2% 3.0% 1% 2.5% 0% 2.0% -1% 01.07 07.07 01.08 07.08 01.09 07.09 01.10 01.07 07.07 01.08 07.08 01.09 07.09 Source: Staatssekretariat für Wirtschaft SECO 4 Financial Reporting 2009, 15 April 2010 …Resulting in Significantly Lower Advertising Investments
Jan - Dec 2008/2009, net advertising revenues in print acc. to typology of Swiss Press
Types 2009 2008 Changes +/- MA
MCHF MA MCHF MA MCHF in % in %
Daily press 889 56.0 1,133 56.8 -244 -21.6% -0.8
Regional weekly press 51 3.2 52 2.6 -1 -1.2% 0.6
Sunday press 150 9.4 212 10.7 -62 -29.4% -1.2
Finance and economy* 50 3.2 72 3.6 -22 -30.1% -0.4
Newspapers 1,140 71.9 1,469 73.7 -329 -22.4% -1.8
Mass media 187 11.8 234 11.7 -47 -20.0% 0.1
Special interest press 198 12.5 217 10.9 -19 -8.8% 1.6
Expert press 61 3.9 73 3.7 -12 -16.6% 0.2
Magazines 446 28.1 524 26.3 -78 -14.9% 1.8
Total print 1,586 100 1,993 100 -407 -20.4% 0.0
* not identical to publication «Finanz und Wirtschaft» Source Advertiser statistics Swiss Press/VSW Verband Schweizerischer Werbegesellschaften (Assoc. of Swiss Advertising Firms ) 5 Financial Reporting 2009, 15 April 2010 Model: Previous Economic Cycles Showed Similarly Severe Drops
Development of job advertisings during economic cycles, change rel. to previous year (in per cent) P Index job advertisings 40% VSW job advertisings in daily press 1 Tamedia job advertisings BZ job advertisings 20% Prognosis
0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-20%
-40% -35
-60%
6 Financial Reporting 2009, 15 April 2010 The Economic Cycle Explains 90 Per cent of Drop in Revenues
Acc. advertising revenues Job ads compared to Total advertising revenues compared to previous cycle previous cycle compared to previous cycles
Unemployment rate -12% -35% 2002 = 2.5% -16% +1% 2009 = 3.7% -2% 100 100 100 88 89 -27% 84 82
65
48
Revenues Previous Actual Revenues Previous Actual Revenues Previous Actual 2008 economic revenues 2008 economic revenues 2008 economic revenues (=100) cylce 2009 (=100) cycle 2009 (=100) cycle 2009
Source: Controlling Tamedia 7 Financial Reporting 2009, 15 April 2010 Tamedia Developed Alongside Market Average in 2009
Revenues according to type of Advertising sales development according to earning media segments 0% Newspapers -10% Print revenue Other revenue -20% Other publisher 5% -22,4% -22,0% activity -30% 2% 4% 0% Magazines Copy sales 25% -10% -20% -14,9% -15,8% 65% Advertising -30% revenue 0% No figures E-Media -10% available -8,7% -20% -30% Market Tamedia
Source: Advertiser Statistics: Swiss Press; Tamedia Finances 8 Financial Reporting 2009, 15 April 2010 Cost Savings Totalling 90 MCHF in All Areas
1 2 3 4 5 Tages-Anzeiger Der Bund Solothurner Early delivery Classifieds Tagblatt • Cost adjust- • Continuation n • Discontinuation •Transfer of early • Cooperation in ments to lower cooperation of Solothurner delivery to online cate- profits with Tages- Tagblatt in Schweizer Post gories and • Launch of new Anzeiger September 2009 •Weko agrees to development concept in • Creation of transaction in of classified Sept. 2009 business Sept. 2009 online foundation organisation
6 7 8 9 20 minutes News Espace Media Additional measures
• Merging of 20 • Discontinuation • Completion of • Cost reductions at 20 Minuten, minutes and Le News Basel and integration of SonntagsZeitung and other titles matin bleu News Berne in Espace Media • Company-wide reduction of vacation • Largest daily summer 2009 • Effective and overtime credits newspaper in • Discontinuation implementation • Consequent reduction of marketing Romandie by News Zurich in of synergy costs in all areas readers fall 2009 potentials
* Without additional cost savings at Presse Publicité SR S.A.
9 Financial Reporting 2009, 15 April 2010 Saving Savings Prove Effective; Investments in Online Media
Cost development according to business division 2009 rel. to 2008 in MCHF
900 2008 2009 -7% 800 722 674 700 -7% 600 543 Investments 507 500 in new online 400 services -26% 300 227 -8% +6% 200 167 90 100 83 81 86
0 Newspapers Magazines E-Media Services Tamedia
10 Financial Reporting 2009, 15 April 2010 Newspapers Division: Losses at Regional Newspapers
Newspapers 2009 MCHF 2005 2006 2007 * 2008 * 2009 2008/09 Revenues 447 475 551 637 521 -18% EBIT 72 85 97 89 11 - 88% EBIT margin 16% 18% 18% 14% 2% - General topics • Consolidation of over-saturated Swiss commuter newspaper market with discontinuation of Cash daily, .ch, Le matin bleu and News • Regional daily newspapers lose additional share in sales and market share Tamedia • 20 Minuten with decrease in revenues and earnings, continued high result level • First positive advertising market feedback for 20 minutes • Subscribed daily newspapers by Tamedia write significant losses for 2009; cost reduction measures will only show full effect during ongoing year • New concepts for Bund and Tages-Anzeiger and their cooperation start being accepted by readership; 2010 once again difficult year for regional newspapers
* Respective data 2008 and 2009 without areas discontinued in 2009 11 Financial Reporting 2009, 15 April 2010 20 Minuten with Unique Market Position in Two Language Regions
20 Minuten media network in German- and French- speaking Switzerland
2020 Minuten Minuten media media netwo networkrk G Germanerman‐speaking‐speakingSwitze Switzerlandrland
20 Minuten media network • Commuter papers reach 1.9 million readers every day • Leading online portal with 2.0 million users per month • Monopoly-like position in morning 20 Minuten media network French‐sp. Switzerland 20 Minuten media network French‐sp. Switzerland • Strongest Swiss media brand • Only Swiss daily newspaper in two language regions from one source
12 Financial Reporting 2009, 15 April 2010 Switzerland Remains Leader in Commuter Newspaper Market
Number of copies of daily commuter newspapers per 100 inhabitants over 14 years in Europe (comparison) in copies 18 17 16 15 14 14 13 12 10 9 8 8 77 66 6 5 4 2 0 D-CH W-CH SWE DK NL ITA ESP CZ FRA FIN UK
Current circul. 861 210 1.000 584 1.200 3.950 2.343 586 2.718 220 2.144 (thsd.) 14+ 4.251 1.377 6.901 4.511 13.428 47.913 34.497 8.736 48.910 4.000 47.265 (thsd.) Source: Metro, 20 Minutes, University of Amsterdam, Verlag 20 Minuten 13 Financial Reporting 2009, 15 April 2010 Subscribed Newspapers with Great Structural Challenges
Advertising sales of print Market share of print media Readership numbers of daily media 1988 rel. to 2008, in as part of total advertising papers w/o assoc 1988 rel. MCHF* market 1988 rel. to 2008, in to 2010, readership in per cent million -29% -24% -16%
3.388 78% 2.015
1.702 59% 2.406
1988 2008 1988 2008 1988 2008 Source: Stiftung Werbestatistik Schweiz; *adjusted Source: Werbestatistik der Stiftung Werbestatistik Source: Wemf AG 1988 and 2010; all newspapers for inflation 1988 rel. to 2008 on basis of Federal Schweiz 1988 and 2008; published in 1988 that were not part of umbrella Consumer Price Index assoc. in 1988 and 2010 14 Financial Reporting 2009, 15 April 2010 Fragmented Media Spaces North-East Switzerland and Zurich
Coverage below 40 per cent Coverage of respectively leading Schaffhauser Nachrichten 42 65.3% regional daily newspapers in Thurgauer Zeitung Coverage below 35 per cent 35.6% economic areas Mittelland Zeitung 44 Basler Zeitung 50.6% 37.8% 31 43 St. Galler Tagblatt 41 Tages-Anzeiger 54.0% 31.2% 26 14 32 Quotidien Jurassien Mittelland Zeitung 50.0% 54.6% 24 Neue Luzerner Zeitung 57.5% 27 L,Express F.d,Avis Bieler Tagblatt 13 33 21 Südostschweiz 28 44.0% 41.7% 35.6% 34 Neue Luzerner Zeitung Südostschweiz Berner Zeitung 59.7% 67.2% 53.0% 25 Neue Luzerner Zeitung 15 78.3% Berner Zeitung 24 heures 12 La Liberté 63.5% 29 44.0% 50.1% 22 Südostschweiz 62.1%
Walliser Bote Tribune de Genève 75.2% 40.6% 51 23 Corriere del Ticino 11 46.6% 16 Nouvelliste 67.1%
Source: MACH Basic 2009‐2 15 Financial Reporting 2009, 15 April 2010 Exchange Between NZZ and Tamedia Enhances Future Perspectives
Thurgauer Zeitung Regional daily newspaper Circulation: 33,784 Zürcher Unterländer Zürcher Oberländer Regional daily newspaper Regional daily newspaper Circulation: 21,597 Circulation: 36,607
Zürichsee-Zeitung Regional daily newspaper Source: Wemf MACH Basic Circulation: 41,957
16 Financial Reporting 2009, 15 April 2010 Participation Exchange Lifts Coverage on a Competitive Level
Coverage of respectively Schaffhauser Nachrichten 42 65.3% leading regional daily Thurgauer Zeitung/ St. Galler Tagblatt newspapers in economic Mittelland Zeitung 44 53.0% Basler Zeitung 50.6% 37.8% areas 31 43 St. Galler Tagblatt 41 Tages-Anzeiger/ 54.0% Der Landbote/ 26 14 32 Zürcher Landzeitungen 48.0% Quotidien Jurassien Mittelland Zeitung 50.0% 54.6% 24 Neue Luzerner Zeitung 57.5% 27 L‘Express F.d‘Avis Bieler Tagblatt33 13 21 Südostschweiz 28 44.0% 41.7% 35.6% 34 Neue Luzerner Zeitung Südostschweiz Berner Zeitung 59.7% 67.2% 53.0% 25 Neue Luzerner Zeitung 15 78.3% Berner Zeitung 24 heures 12 La Liberté 63.5% 29 44.0% 50.1% 22 Südostschweiz 62.1%
Walliser Bote Tribune de Genève 75.2% 40.6% 51 23 Corriere del Ticino 11 46.6% 16 Nouvelliste 67.1%
Source: MACH Basic 2009-2 17 Financial Reporting 2009, 15 April 2010 Concentration and Strengthening of Regional Media Companies
Sold participations on regional and local newspapers 2009 and 2010
Anzeiger von Kerzers Local newspaper Thurgauer Zeitung Circulation: 1‘450 Regional daily newspaper Circulation: 33‘784
Der Murtenbieter Local newspaper Cirulation: 4‘250
Le Nouvelliste Regional daily newspaper Circulation: 42‘300
18 Financial Reporting 2009, 15 April 2010 Tages-Anzeiger: More Contacts Despite News Discontinuation
Readers and users in Economic Area 43 Contacts of Tages-Anzeiger media in Economic Area 43 (Canton of Zurich)
74,000 +3% Exclusive users 641 582 563 125 103,000 73 Double users 177 126
490 390 405
302,000 Exclusive readers 2001 2008 2009 News tagesanzeiger.ch Tages-Anzeiger Source: MA Strategy Basic 2009/2001
19 Financial Reporting 2009, 15 April 2010 Newspapers Reach More People Today than Five Years Ago
Coverage 2004 to 2009 of total population German-speaking Switzerland, in per cent* -2% ‐8% -10% +1%
92% 90 % +54% 80% 81% 74% 68% 75% 67% 40% 26%
2007‐1 Radio TV Daily newspapers w/o Daily newspapers with Internet commuter papers commuter papers Coverage 2004 to 2009 14- to 29-year old German Swiss persons, in per cent*
-7% +5% 2004 2009 -13% -18% 85% +65% 79% 76% 79% 65% 58% 51% 53% 41% 25%
2007‐1 Radio TV Daily newspapers w/o Daily newspapers with Internet commuter papers commuter papers Source: Radiocontrol, Telecontrol, MACH Basic 2004–2009-2, NET-Metrix Profile 2007-1–2009-2; Coverage Radio and TV (Listeners and Watchers per day), readersr (LpA) and users (Unique User per week) 2004 to 2009 in German-speaking Switzerland in per cent; NET-Metrix Profile published only after 2007-1; The share of websites not yet rperesented in NET-Metrix profiles 2007-1 (Rtsi, Bluewin News It, zisch.ch, Romandie.com News, TIO News, baz.ch, thurgauerzeitung.ch) only has slight effect on net coverage of publication Profiles 2009-2 ; * Internet reach per week, all other media per day
20 Financial Reporting 2009, 15 April 2010 Magazines Division: Stable Revenue Stream
Magazines 2009 2005 2006 2007 * 2008 * 2009 2008/09 Revenues 88 84 94 102 95 -7.2% EBIT 7 13 15 11 12 + 3.3% EBIT margin 8% 16% 16% 11% 12% - General topics • The slump in advertising revenue affects magazines almost as much as newspapers • Strong competition from adjacent markets causes strong competitive pressure Tamedia • Reorganisation of Fachmedien Mobil as reaction to economic and auto crisis; sale of motor cycle titles Moto Sport Schweiz and Moto Sport Suisse • Successful focussing of Fachmedien Agrar on main title Schweizer Bauer • People magazine 20 Minuten Friday, launched at the end of 2008, exceeds all expectations • Annabelle resists economic crisis with stable revenues • Weekend supplement Das Magazin maintains result at attractive level • Positive result expectations at Schweizer Familie; title confirms high expectations * Respective values 2008 and 2009 without areas discontinued in 2009
21 Financial Reporting 2009, 15 April 2010 Focussing on Schweizer Bauer and Automobil Revue
Fachmedien Agrar: Schweizer Bauer Fachmedien Mobil: Automobil Revue
Reduction Sale
22 Financial Reporting 2009, 15 April 2010 20 Minuten Friday Exceeds Readership and Sales Expectations
Readership 20 Minuten Friday according to age groups (in thousands)
450 422 400 50
350 120 300 253 250
200
150
100
50
0 14-34 35-54 55++ total
Source: MACH Basic 2010-1 23 Financial Reporting 2009, 15 April 2010 E-Media Division: Growth of Online Activities
E-Media 2009 MCHF 2005 2006 2007 * 2008 * 2009 2008/09 Revenues 53 52 62 85 93 + 9% EBIT -3 2 2 1 -1 -203% EBIT margin -6% 4% 3% 2% -2% - General topics • Significance of online advertising expenses increases at continued low level • Strong market positions of large foreign providers on Swiss market Tamedia • Radio and TV activities with decreasing sales in difficult environment • Online sales increase thanks to growth of existing media, and acquisitions • News platforms 20 Minuten and Newsnetz continue growth in user market • Tamedia gradually develops online portfolio with participations in olmero.ch, car4you.ch, search.ch and invests in news portals and the extension of search.ch • Development of a joint category organisation Classified Online with Edipresse • Goodwill-Impairment at tilllate.com * Respective values 2008 and 2009 without areas discontinued in 2009
24 Financial Reporting 2009, 15 April 2010 Tamedia Strengthened Online Positions Over Last Two Years
Leading websites in Switzerland in December 2007, unique clients in thousands*
3′922 4′000
3 000 ′ 2′404 2′000 1′504 1 459 ′ 1′398 1′342 1′217 1′024 855 1′000 430 0 Bluewin search.ch 20minu- Blick sf.tv Edipresse NZZ Online money- tages- Local ten.ch Online house anzeiger.ch
Leading websites in Switzerland in December 2009, unique clients in thousands*
+0% +17% +552%* +62% +43% +42% +23% +23% +65% +13% 3′925 4′000 2′810 2′802 3′000 2′442 2′090 1′979 2′000 1′656 1′493 1 407 ′ 1′157 1′000 0 Bluewin search.ch Local 20minu- Blick sf.tv Edipresse NZZ Online tages- money- ten.ch Online anzeiger.ch house Source: NET-Metrix-Audit December 2007/2009; *Since October 2008 the address directories gelbeseiten.ch and weisseseiten.ch are no longer recorded under directories.ch, but under local.ch; *only websites active in both measurement periods 25 Financial Reporting 2009, 15 April 2010 Online Participations with 100 MCHF Revenues in 2009 Already
1 2 3 News Classifieds Services
20minuten.ch20 Minuten Online homegate.ch search.ch
tagesanzeiger.ch jobup.ch fashionfriends.ch sowieAs well weitere as further news As well as further As well as further service Nachrichtenplattformenplatforms category platforms platforms
26 Financial Reporting 2009, 15 April 2010 Online Participations Already Employ 400 Persons
Number of employees at online media Number of employees at online media and during 2009 (consolidated), in full-time participations during 2009, in full-time posts posts 400 400 390 350 350 83 300 300
250 247 250 40 156 200 200 67 150 150 140 150
100 100
50 50
0 0 Editorials Classified Services Total Editorials Classified Services Total and editorial-like and editorial-like areas areas * Tamedia, incl. participations acc. to respective degree, excl. Edipresse, * Tamedia, incl. participations, excl. Edipresse, Basis: December 2009; Basis: December 2009; Source: Personnel statistics Tamedia, company data Source: Personnel statistics Tamedia, company data
27 Financial Reporting 2009, 15 April 2010 Edipresse: Merger Will Further Strengthen Online Field
Leading websites in Switzerland in 2009, unique clients in thousands
4′000 3′925 3′744
3′500 3′003 3′000 2′810 2′802 2 442 2′500 ′ 2′146 2′090 1′979 2′000 1′892 1′656 1′500
1′000
500
0 Bluewin Micro- ricardo.ch sear- local.ch 20- Newsnetz Blick sf.tv Scout- Edi- soft ch.ch minu- Online 24* presse Source: NET-Metrix-Audit December 2009 ten.ch * Scout24 without other Ringier websites
28 Financial Reporting 2009, 15 April 2010 Joint Market Place Organisation with Edipresse Starting 2010
Job network Edipresse and Tamedia Car ads 1 2 + + 2
alpha.ch and jobsuch- maschine.ch jobup.ch jobwinner.ch car4you.ch** in jobwinner.ch UCs: 253,791* UCs: 409,000 UCs: ~1,000,000*
Real estate network Edipresse and Tamedia Partner ads 1 + + 1
anzeiger.ch alle-real estate.ch in homegate.ch in homegate.ch homegate.ch swissfriends.ch UCs: 951,000 UCs: 441,742*
Source: NET Metrix Audit; *own reporting; **Participation 29 Financial Reporting 2009, 15 April 2010 Online Media More Profitable than Media Everage
Share of online media in total 2009 EBITDA share of online media in total 2009 Tamedia revenues Tamedia result
9% 15%
30 Financial Reporting 2009, 15 April 2010 Extension of Online Services as Strategic Core Task
Strong position with great range • With its participations in online companies generating some 100 MCHF in revenues and employing 400 persons, Tamedia disposes of a strong online portfolio • The news, market place, and service platform participations of Tamedia reach more people than all other media networks in Switzerland • Today already, online activities make a significant contribution to revenues and are marked by above-average profitability Further expansion of online portfolio • Over the coming years, Tamedia will strengthen its online portfolio in the traditional core areas of news and market places • Targeted investments in new services and young start-up companies constituting an investment focus over the coming years will contribute to Tamedia’s intended portfolio extension • In the year 2012, online services should already contribute 25 per cent of the Tamedia result at the EBITDA level
31 Financial Reporting 2009, 15 April 2010 Tamedia Media Are Represented with Leading iApps
Search: most- downloaded application search.ch during days after introduction directory weather schedule
TV application: Upon launch, one of the five 20minuten.ch/20minutes.ch apps with most revenues news weather TV cinema
Newsnetz apps: first news apps with breaking Newsnetz news function news TV
homegate.ch: leading real estate app with homegate.ch 50,000 entries real estate search
32 Financial Reporting 2009, 15 April 2010 Mobile Use: iPhone-Users More Faithful Than Other Web Users
Web access during times of day Visits per web and Article per web iPhone user and iPhone user
Factor 4.6 Factor 0.5
242 4 6 8 10121416182022 iPhone access during times of day
24 18161412108642 2220 Web Mobile Web Mobile
33 Financial Reporting 2009, 15 April 2010 Potential: Online Still with Low Range at Daily Basis
Number of unique users 20 Minuten Online during Feb 2010 per month, week, Readers and day Unique users per week 1.9 million Unique users per day daily (CH)
56%
85% 1′124
496
165 Users Unique Unique Unique 0.17 million users per users per users per month week day daily (CH)
NET‐Metrix Profile 2009‐2 CH 34 Financial Reporting 2009, 15 April 2010 Online Media with Continued Great Growth Potential
Monthly users of commuter newspapers Monthly users of Tages-Anzeigers and 20 Minuten and 20minuten.ch in 2009 tagesanzeiger.ch in 2009 4′153 1′095
-39%
-73% 666
1′124
Source: MACH Basic 2009-2/ Heatmap April-Juni 2009
35 Financial Reporting 2009, 15 April 2010 Services Division: Maintained high Profitability Level
Services 2009 MCHF 2005 2006 2007 * 2008 * 2009 2008/09 Revenues 215 208 205 285 225 -21.3% EBIT 20 18 19 32 31 -4.5% EBIT margin 9% 9% 9% 11% 14% -
General topics • Economic crisis and consolidation of commuter newspaper market lead to significant decrease of print volumes and large excess capacities Tamedia • Decreasing volumes of printing facilities due to consolidation in commuter newspaper market; print reduction 20 Minuten and discontinuation of News • New newspaper concepts Der Bund and Tages-Anzeiger lead to excess capacities in print area: capacity adjustment in two steps 2009 and 2010 • Transfer of early delivery organisation to Schweizerische Post completed • Service division successfully maintains high profitability level: revenues and earnings are almost exclusively generated with internal newspaper clients * Respective values 2008 and 2009 without areas discontinued in 2009
36 Financial Reporting 2009, 15 April 2010 The Print Volumes in Tamedia Printing Facilities Drop Massively
Number of printed newspaper copies in Number of printed newspaper copies in 2008, in millions 2009, in millions
70 70 - 23% 65 - 22% 60 60 50 50 50 41 40 40 - 24% 32 30 30 24 20 20 19
10 10
0 0 Print centre Print centre Total Print centre Print centre Total Bern Zürich Bern Zürich
Source: Controlling Druckzentren Tamedia
37 Financial Reporting 2009, 15 April 2010 7 Per cent EBIT Margin Above Long-term Average
Tamedia EBIT margin development since 1990
25% Comparison 2002 with 2009
20%
15%
10% 7%
5% 3%
0%
-5%
-7% -10% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
38 Financial Reporting 2009, 15 April 2010 Dependence on Job Advertisings Reduced Since 2002
Tamedia EBIT margin development w/o job advertisings* since 1990 (ext. observation)
15%
10%
4% 5% 1%
0%
-5%
-8% -10% Comparison 2002 with 2009
-15% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
TamediaTamedia withoutohne Stellen-Anzeiger+AlphaStellen-Anzeiger + Alpha TamediaTamedia withoutohne sämtlicheall job ads Stellenanzeigen** * Tamedia has deducted the EBIT product result from Tamedia EBITDA until 1995. For the years 1990-1994 the EBIT has been calculated using an average page profit and an 80 per cent margin; Facts/Basilisk/HPP/Huber/Benteli Hallwag treated as discontinued areas ** Job advertisings contain: Stellen-Anzeiger, Alpha, BZ/Bund, Thurgauer Zeitung and 20 Minuten (average page profit: 80% Marge until 07/70 % Margin since 08)
39 Financial Reporting 2009, 15 April 2010 Tamedia Expects Continued Decrease in Advertising Sales in 2010
Prognosis for traditional ads Prognosis for job sales Prognosis for total 2010 development 2010 advertising sales 2010 -10% -40% -14% 2008=100
100 100 100 90 86
60
2009 sales Last 2009 sales Last 2009 sales Last economic economic economic cycle 2010 cycle 2010 cycle 2010 40 Financial Reporting 2009, 15 April 2010 Two First Months Do Not Show Change in Trend
Change in net advertising expenses compared to respective month of previous year (in per cent)
-2%
-5%
-13%
-17% -16% -18% -17%
-21% -21% -23% -26% -26%
-29% -28% Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 10 Jan 10 Feb 10
Source: Advertiser statistics of Swiss Press 2010 41 Financial Reporting 2009, 15 April 2010 Edipresse and Tamedia: Three-step Merger Until 2013
The key milestones until 2013
Until fall 17 Sept. 2nd quarter 1nd quarter 1st quarter 3 March 2009 1994 2004 2009 2009 2010 2011 2013
Communication WEKO Agreement First step Second step Third step Information and inspection through Tamedia buys Tamedia buys Tamedia buys then submission Inspection by WEKO 49.9 per cent an additional the remaining to Competition federal Competition in Edipresse 0.2 per cent in 49.9 per cent in Commission Competition Commission Edipresse Edipresse; Commission; approves Groupe Election of Edipresse Pierre participates in Lamunière in Tamedia Tamedia Board of Directors
42 Financial Reporting 2009, 15 April 2010 Outlook: Adverts Environment Difficult; Fusion with Edipresse
Economic challenges • Tamedia expects that advertisement revenues will continue to decrease in accordance with the general economic climate, thus causing decreasing revenues in the core business with newspaper and magazine Structural challenges • The search for saving potentials in all company divisions with an emphasis on newspapers and magazines must be continued in view of the expected decrease in revenues for the next year • Restructuring of the printing facility in Zurich during the month of March 2010 as a consequence of decreased use caused by the new Tages-Anzeiger concept • New concept of free sheet Berner Bär toward summer 2010 and reduction down to weekly issue Growth perspectives • The focus of the year 2010 is placed on the merger with Edipresse Schweiz and the strengthening of regional newspapers • The further internal development of online services through targeted participations will also be among the core tasks
43 Financial Reporting 2009, 15 April 2010 2009 Financial Year: Financial Report
Sandro Macciacchini Chief Financial Officer
44 Financial Reporting 2009, 15 April 2010 Preliminary Remarks on 2009 Financial Year (1/2)
Changes in consolidation cycle • Acquisition of 75 per cent of Räber Information Management GmbH (search.ch) per 1 November 2009 (full consolidation). • Founding of 20 Minutes Romandie per 25 September 2009 as joint venture with Presse Publication SR SA. Tamedia holds 50 per cent of shares (quota consolidation). • On 1 December, Tamedia has acquired the 25 per cent participation in the NP News Print AG (News) previously owned by Basler Zeitung Medien. It now owns 100 per cent. • Companies Huber PrintPack AG, Piazza AG, and Verlags-AG Sonntags Zeitung merged, retroactively per 1 January 2009, in order to simplify the group structure.
45 Financial Reporting 2009, 15 April 2010 Preliminiary Remarks on 2009 Financial Year (2/2)
Discontinued areas/ assets for sale • The early delivery activities have been transferred to Schweizerische Post as per 1 November 2009. Tamedia sold its 50 per cent participations in the Zuvo Zustell- und Vertriebsorganisation AG and the Bevo AG as well as its 100 per cent participation in the Espace Media Vertriebs AG. • The commuter newspaper News has been discontinued as per 4 December 2009. • The motorcycle magazines Moto Sport Schweiz and Moto Sport Suisse were sold as per 1 November 2009. • For the previous year, the activities of Benteli Hallwag are contained under the discontinued activities. • Two properties for sale have been newly regrouped into the assets for sale.
46 Financial Reporting 2009, 15 April 2010 Operating Revenues Decrease by 14 Per Cent – Effects in Other Operating Revenues Esp. Due to Sale of Properties in MCHF -13.9% -14.4% 890.1 900 811.6 800 766.0 694.9 700
600
500
400
300 -29.2% +17.5% 200
100 45.5 32.2 33.1 38.9
0 Media revenues Printing revenues Other operating revenues Operating revenues 2008 2009 The figures refer to the respectively continued areas
47 Financial Reporting 2009, 15 April 2010 Operating Expenses Decrease by 7 Per Cent - Restructuring Costs Impact Personnel Expenses in MCHF ‐6.6% 800 722.0 700 674.4
600
500 ‐1% 400 ‐14% ‐6.7% 288.6 285.8 300 217.5 215.8 187.1 201.4 200
100
0 Costs of material and Personnel expenses Other operating Operating expenses services expenses 2008 2009 The figures refer to the respectively continued areas
48 Financial Reporting 2009, 15 April 2010 Depreciation and Amortisation Increases by 16 Per Cent Mainly Due to Impairment on the Goodwill of Tilllate in MCHF 50 +15.9% 45 40 40.0 +1.5% 35 34.5 30 26.6 27.0 25 20 +65.8% 15 12.6 10 7.6 +33.3% 5 0.3 0.4 0 Abschreibungen auf Abschreibungen auf Übrige Abschreibungen Abschreibungen gesamt D&ASachanlagen of fixed D&Aimm. of Anlagen intangible &Other Wertberichtigungen D&A and value Total D&A assets assets adjustments 2008 2009
The figures refer to the respectively continued areas
49 Financial Reporting 2009, 15 April 2010 Capex of 12.1 MCHF Below Multi-year Average
Investments in capital equipment (Capex) in MCHF 60
51.0 50
40.1 40 32.9 33.8 øMCHF 26.4 30 27.3 29.1 22.3 22.8 20 11.0 12.1 10 8.0
0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
50 Financial Reporting 2009, 15 April 2010 Net Income Drops by 56 Per Cent − Effects in Financial Income Due to Sale of Group Companies in MCHF -60.4% 180 -61.4% 160 153.8 -58.5% -55.9% 140 133.6 124.5 120 105.8 100
80 60.9 60 51.6 51.7 46.7 40
20
0 EBIT Income before taxes Net income for Net income 2008 2009 continued operations
51 Financial Reporting 2009, 15 April 2010 Cash Flow from Operating Activities Cut Into Half
in MCHF Status of cash and cash equivalents 200 -49.9% 31.12.2009 MCHF 113.6 150 135.7 +98.2% +38.9% 100 68.0 50 25.3 1.1 1.3 0
-50 -43.9 -62.8 -100 -71.9
-150
-200 Cash flow from Cash flow from Cash flow from Change in cash and operating activities investing activities financing activities cash equivalents 2008 2009
52 Financial Reporting 2009, 15 April 2010 Newspapers with Low Margin – E-Media With Negative EBIT
Revenues in MCHF
Operating income (EBIT) in MCHF * After intersegment elimination EBIT margin 766.0
521.1
224.9 14.7% 6.7% -1.2% 2.1% 12.2% 94.6 93.0 51.6 11.0 11.5 33.1 -1.1
ZeitungenNewspapers ZeitschriftenMagazines E-Media E-Medien Services TamediaTamedia totalgesamt * *
53 Financial Reporting 2009, 15 April 2010 Operating Revenues per Employee Sank to CHF 317,000 CHF
Operating revenues per employee Number of employees in CHF thousands in FTE 2'700 450 2'500 400 2'300
350 2'100
300 1'900
250 1'700
1'500 200 2002 2003 2004 2005 2006 2007 2008 2009
Revenues per capita Change in employees
54 Financial Reporting 2009, 15 April 2010 Equity Ratio Once Again Increases to 71 Per cent
in MCHF
1200
1000 303.7 269.1 270.6 285.8 65.6 800 65.5
600
400 828.1 841.8 68% 200 70.8% 747.5 810.9 0 2008-12 2008-12 2009-12 2009-12
Invested assets Liquid assets Equity capital Long-term outside capital Short-term outs
55 Financial Reporting 2009, 15 April 2010 Share Price 2009: Share of Tamedia Improving Remarkably
Market trend SPI, SPI sector media and Tamedia 30 December 2008 until 13 April 2010 180 170 160 150 140 +71% 130 120 110 SPI 100 SPI Media 90 Tamedia 80 70 60 30.12.2008 = 100 50 01.09 03.0902.09 04.09 05.09 06.09 07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.1004.10 05.10
56 Financial Reporting 2009, 15 April 2010