Financial Results 2008
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Financial Reporting 2008 1 Analyst‘s Conference 2008, 8 April 2009 Annual Report 2008: Overview Martin Kall Chief Executive Officer (CEO) 2 Analyst‘s Conference 2008, 8 April 2009 Tamedia increases sales in 2008 with a decline in net income An overview of financial years 2007 and 2008 EBIT margin 2007 18.0% in CHF mill.+21% in CHF mill. 2008 13.3% 900 200 -4% -30% 800 898 180 -11% 160 700 743 160 140 154 151 600 120 134 500 119 100 106 400 80 300 60 200 40 100 20 0 0 Sales EBITDA EBIT Net income 2007 2008 3 Analyst‘s Conference 2008, 8 April 2009 Multi-year comparison: Significant decline in operating profits overall Tamedia in CHF mill. 2004 2005 2006 2007 2008 07/08 Sales (operating revenues)* 567 650 658 743 897 21% Operating income before 103 127 141 160 154 -4% depreciation & amortisation (EBITDA) EBITDA margin 18% 20% 21% 21% 17% - Operating income (EBIT) 63 95 118 133 119 -11% EBITDA margin 11% 15% 18% 18% 13% - Net income 51 80 103 162 110 -32% Net income per share (in CHF) 4.98 7.95 9.85 13.45 10.27 -31% Dividends per share (in CHF) 1.50 2.50 3.00 4.00 3.00** -25% * Operating revenues from third parties ** Recommendation of the Board of Directors 4 Analyst‘s Conference 2008, 8 April 2009 The economy slips into a recession for the first time in five years Recession and an increase in unemployment rates • During the course of the second half of the year 2008, for the first time in five years the economy slipped into a recession. In 2008, real growth was at 1.8 per cent (previous year 3.3 per cent) • While exports and investments dropped dramatically, especially in the fourth quarter, consumer spending continued to be stable • The unemployment rate, which in June was at 2.3 per cent, the lowest level for the last six years, increased significantly to 3.0 per cent by the end of the year Negative consumer confidence • The consumer confidence index continued its decline that began in 2007 and was at - 27 points in the fourth quarter of 2008, its lowest level in five years Significant decline in advertising spending • After a cautious start into the year, gross advertising investments declined significantly beginning in June. On average, based on statements from Media Focus, investments reached positive growth of 2.6 per cent. However, net advertising spendings were likely significantly lower • The Publicitas Index, which shows long-term changes in advertising expenditures in daily media, was at 89.8 index points or 8 per cent lower than in the previous year (98.1). During this economic cycle, the index lagged significantly behind the achieved mean value of the previous economic cycle Source: Swiss State Secretariat for Economic Affairs SECO; Mediafocus, Publicitas 5 Analyst‘s Conference 2008, 8 April 2009 Volume of ad insertions in daily newspapers declining since February 2008 Publicitas Index: Change in commercial advertising spending in daily media (12/1993=100) in index markers 140 Change to previous year 12/2008 to 12/2007 -8 per cent 130 120 110 100 90 80 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Publicitas 6 Analyst‘s Conference 2008, 8 April 2009 The economic decline began having an effect in June 2008 Comparison of commercial advertising in national daily newspapers 2008 to 2007 in CHF mill. -11% -14% -12% +6% -8% 220 -0% -15% 202 201 206 200 192 2007 196 185 185 180 182 181 2008 181 180 +6% 174 -12% 180 +3% 160 151 154 -2% 143 147 136 140 140 -7% 130 124 122 120 106 99 100 80 60 40 20 0 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Source: WEMF Advertising statistics 7 Analyst‘s Conference 2008, 8 April 2009 Job ads declining since the third quarter of 2008 Publicitas Index Jobs: Change of job ad insertions in the daily press (12/1993=100) in index points 350 Changes to previous year 12/2008 to 12/2007 -2 per cent 300 250 200 150 100 50 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Publicitas 8 Analyst‘s Conference 2008, 8 April 2009 Print Media holds 2008 market share in advertising market Advertising spending in CHF mill.* 2005 2006 2007 2008 07/08 Daily, regional weekly and Sunday media 1077 1205 1288 1306 1.4% Public, financial and economic media 335 362 400 383 -4.3% Special interest publications 367 359 386 387 0% Trade press 81 80 79 82 3.8% Print 1861 2008 2154 2160 0% TV 795 877 1038 1102 6.2% Radio 133 133 134 132 -1.5% Billboard 379 400 413 424 2.6% Cinema 49 49 47 42 -10.7% Teletext 13 11 10 12 20% Online 36 46 52 74 42.3% Total 3266 3524 3848 3946 3.5% * Source: Media Focus 9 Analyst‘s Conference 2008, 8 April 2009 Newspapers division: Structural changes accelerate Newspapers 2008 CHF mill. 2004 2005 2006 2007 2008 2007/08 Sales 347 447 475 551 641 16% EBIT 47 72 85 97 70 -29% EBIT margin 14% 16% 18% 18% 11% - General Issues • Investments in the commuter papers and the Sunday market reach peak numbers • Regional dailies lose additional market share in the reader and advertising market Tamedia • Berner Zeitung with a slight drop in sales; After balanced results for the most part in the previous year, Der Bund once again shows losses • Sales and net income of Tages-Anzeiger continue to show a declining trend • Thurgauer Zeitung shows a distinctive improvement in sales and net income in the newspaper network Nordostschweiz 10 Analyst‘s Conference 2008, 8 April 2009 Three commuter papers among the top ten leading dailies Readership numbers of leading daily newspapers in Switzerland in thousands 1244 20 Minuten 1365 Blick 672 651 516 Tages-Anzeiger 479 427 Mittelland Zeitung 415 407 Berner Zeitung and Bund 388 291 Blick am Abend (heute) 313 Neue Zürcher Zeitung 297 294 News 276 2008-1 Neue Luzerner Zeitung 284 269 2009-1 233 Südostschweiz 229 0 100200 300 400500 600 700 800 900 1000 1100 1200 1300 1400 MLZ since Basic 2006-2 incl. Basellandsch. Zeitung; St. Galler Tagblatt Total: City edition St. Gallen and Ostschweizer Tagblatt merged since March 2006;) Basler Zeitung: All household circulation not included; source: MACH Basic 2009-1 11 Analyst‘s Conference 2008, 8 April 2009 Impressive growth of 20 Minuten continues Number of readers of 20 Minuten and 20 minutes in Switzerland in thousands 2000 1,853 1800 1600 488 470 1400 276 1200 1000 800 1,365 1'296 600 1039 1'212 948 400 720 782 526 200 314 0 MACH 2001 MACH 2002 MACH 2003 MACH 2004 MACH 2005 MACH 06-2 MACH 07-2 MACH 08-2 MACH 09-1 Source: Wemf Mach Basic 12 Analyst‘s Conference 2008, 8 April 2009 Romandie: 20 minutes and Le matin bleu are titles with the widest reaching range Readership range commuter papers in Romandie, MACH Basic 2007-2/2008-2 +48% +70% 550 524 2007-2 500 470 2008-2 450 400 353 350 300 276 250 200 150 100 50 0 Le Matin bleu 20 minutes Source: MACH Basic 2008-2/2007-2 13 Analyst‘s Conference 2008, 8 April 2009 The volume of commuter papers reaches peak numbers in 2008 Number of daily commuter papers per 100 residents 14 and older in Europe In copies 0.40 36 35 0.30 0.20 14 13 0.10 9 9 8 7 6 6 Weight average 5.5 5 4 3 3 2 0 0.00 D-CH W-CH SWE DK NL ESP ITA CZ FRA FIN UK HUN P AUT GRE D Circulation 1,530 480 1,000 586 1,200 3,001 3.950 586 2,718 220 2,144 369 275 200 217 0 (thousands) 14+ 4,251 1,377 6,901 4,511 13,428 34,497 47,913 8,736 48,910 4,000 47,265 8,754 8,268 6,796 9,132 71,936 (thousands) Source: Metro, 20 Minutes, University of Amsterdam, publishing house 20 Minuten 14 Analyst‘s Conference 2008, 8 April 2009 The commuter paper boom has surpassed its zenith General Issues • The evening paper Heute is discontinued and replaced with Blick am Abend • After the distribution concept failed, .ch fundamentally changed its concept • Multimedia network Cash fails; Commuter paper Cash discontinued in the spring of 2009 Tamedia • 20 Minuten and 20 minutes once again increase their sales volume despite intense competition • News successful in the reader’s market; Evidence is still outstanding in the advertising market • L’essentiel exceeds expectations in the reader’s market, both in terms of sales and net income Outlook: • 20 minutes and Le matin bleu showing continued losses despite success in the reader's market • Edipresse and Tamedia plan to merge the commuter papers 20 minutes and Le matin bleu in French-speaking Switzerland after the approval from the Swiss Competition Commission 15 Analyst‘s Conference 2008, 8 April 2009 Daily newspapers have been losing commercial ads for years … Advertising revenue by media groups 1998 – 2008 * 0% 0% 1% 1% 1% 1% 1% 1% 1% 2% 1% 100% 0% 0% 0% 0% 0% 0% 0% 0% 0% Internet 3% 3% 3% 3% 3% 2% 1% 1% 1% 1% 1% 4% 4% 2% 4% 2% 4% 1% 3% 1% 3% 0% 90% 10% 11% 11% 12% Teletext 13% 13% 12% 12% 11% 11% 11% 1% 80% Cinema 18% 19% 19% 20% Radio 19% 21% 70% 23% 24% 25% 27% 28% Billboard 3% 3% 3% Television 60% 8% 3% 3% 8% 9% 2% 2% 10% 10% 2% 2% 2% Trade press 10% 2% 50% 12% 12% 11% 10% Special interst 12% 11% 10% 10% 12% 12% publications 11% 40% 10% 10% 10% 10% 10% Consumer magazines 30% 44% 20% 43% 41% 38% 38% 37% Daily and weekly 35% 33% 34% 33% 33% newspapers 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Mediafocus; * without industry events; Internet display ads only 16 Analyst‘s Conference 2008, 8 April 2009 …and suffer from the structural shifts in job ads Job ads in Tages-Anzeiger (Alpha and Stellenanzeiger) in pages 1988 to 2008 -58% 11.000 10.293 10.000 9.691 9.017 9.000 9.000 8.668 8.025 8.000 7.000 6.666 5.919 6.000 5.305 5.000 4.521 4.269 4.352 4.310 3.877 4.052 4.000 3.581 3.729 2.907 3.101 3.000 2.653 2.850 2.000 1.000 0 1988 1989 1990 1991 1992 1993 1994