1999 Interim Results2nd September 1999

All numbers in Euros

INDEPENDENT NEWS & MEDIA PLCINDEPENDENT NEWS & MEDIA PLC

1st Half Highlights1st Half Highlights

Headline NumbersHeadline Numbers

1999 1998 Change Euros Euros %

Turnover 525.7m 396.5m +32.6%

Operating Profit 82.6m 68.7m +20.2%

Profit Before Tax 61.0m 41.5m +47.0%

Net Profit 32.8m 25.9m +26.6%

EPS 13.08c 10.44c +25.3%

DPS 4.44c 3.81c +16.5%

South Africa16%

UK13%

Ireland27%

Australia23%

New Zealand

21%

Turnover by Market - 1999Total : Euro 555m *

Turnover By MarketTurnover By Market

* Including Group share of joint ventures and associates

Profit by MarketProfit by Market

Ireland39%

S.A.10%

Australia28%

New Zealand

23%

Operating Profit by Market - 1999Total : Euro 83m *

* Excluding exceptional items, but including Group share of joint ventures and associates

Summary Balance SheetSummary Balance Sheet

Fixed Assets * 2,046 1,516

Other Net Assets 26 36

Net Debt (850) (645)

Total Shareholders’ Funds * 1,222 907

Interest cover (EBITDA/Interest) 4.6x 3.0x

Net Debt to EBITDA 3.9x 3.6x

1999Euro ‘m

1998Euro ‘m

* Including the revalued element of mastheads

Summary Cash FlowSummary Cash Flow

Operating profit 82.6 68.7

Restructuring costs - 3.4

82.6 72.1

Share of Associates & JV’s Results (1.3) (7.2)

Depreciation & Amortisation 18.7 16.4

EBITDA 100.0 81.3

Operating cash flow * 86.6 52.4

Operating cash flow conversion (%) 87% 65%

1999 Euro ‘m

1998 Euro ‘m

* excluding restructuring payments

• Acquired 100% of South African businessAcquired 100% of South African business

• Increased stake in Australia to 41%Increased stake in Australia to 41%

• Issued 10 Year Euro200m Eurobond at 5.75%Issued 10 Year Euro200m Eurobond at 5.75%

• Change of name to reflect overall media focusChange of name to reflect overall media focus

Corporate ActivityCorporate Activity

• Strong recovery in key currenciesStrong recovery in key currencies

• Returned to double-digit growth in Irish operationsReturned to double-digit growth in Irish operations

• Recovery of New Zealand economyRecovery of New Zealand economy

• Strong performance from Australian operationsStrong performance from Australian operations

• Efficient treasury and tax managementEfficient treasury and tax management

• Group-wide restructuring successfully implementedGroup-wide restructuring successfully implemented

Key Operational DriversKey Operational Drivers

• 83% of total planned headcount reduction achieved83% of total planned headcount reduction achieved

• Ireland - new print plant to be operational by Q4 2000Ireland - new print plant to be operational by Q4 2000

• New Zealand - Significant progress on all initiativesNew Zealand - Significant progress on all initiatives

• South Africa - Commercial initiatives almost complete South Africa - Commercial initiatives almost complete

and the longer-term editorial initiatives underwayand the longer-term editorial initiatives underway

• Overall, on-track to achieve planned savingsOverall, on-track to achieve planned savings

RestructuringRestructuring

Operating and Financial Performance

Operating and Financial Performance

Brisbane

SydneyAdelaide

Melbourne

Canberra

Perth

AustraliaAustralia

Turnover 127.3 122.1 +4.3%

EBITDA 29.7 26.8 +10.9%

Operating Profit 25.1 22.1 +13.9%

Margin (%) 19.7% 18.1%

Exceptionals - -

1999Euro ‘m

Change%

1998 *Euro ‘m

AustraliaAustralia

* including 100% of ARN

AUSTRALIA

AUSTRALIA

• Revenue split …Revenue split …

• Double digit EBIT growth in all divisionsDouble digit EBIT growth in all divisions

• Publishing - improved local revenues, cost initiatives Publishing - improved local revenues, cost initiatives & circulation pick-up& circulation pick-up

• Electronic - Local revenue gains & cost reductionsElectronic - Local revenue gains & cost reductions

• Outdoor - 46% EBIT growthOutdoor - 46% EBIT growth

• Best 5 year EPS growth of 8 largest media companies Best 5 year EPS growth of 8 largest media companies

• Forecasting 7th year of net profit & dividend growthForecasting 7th year of net profit & dividend growth

48%25%

27%

Publishing

Outdoor

Electronic

Auckland

Wellington

Christchurch

New ZealandNew Zealand

New ZealandNew Zealand

Turnover 104.1 106.3 -2.1%

EBITDA 28.5 29.0 -1.6%

Operating Profit 20.3 21.1 -4.0%

Margin (%) 19.5% 19.5%

Exceptionals - (1.4)

1999Euro ‘m

1998 *Euro ‘m

Change%

* based on continuing operations

NEW

ZEALAND

NEW

ZEALAND

• Revenue split ... Revenue split ...

• Strong performance in Quarter 2 1999 Strong performance in Quarter 2 1999

• NZ Herald - advertising market share gainsNZ Herald - advertising market share gains

• Successful launch of Successful launch of Hawkes Bay TodayHawkes Bay Today

• Significant benefits from restructuringSignificant benefits from restructuring

• Strong performance from Radio operationsStrong performance from Radio operations

• Forecasted upswing for 2nd halfForecasted upswing for 2nd half

92%

8% Publishing

Electronic

London

United KingdomUnited Kingdom

*based on 100% of UK operations

United KingdomUnited Kingdom

Turnover 71.4 77.4 -7.7%

EBITDA (2.3) 1.4

Operating Profit (3.1) 0.5

Margin (%) -4.4% 0.6%

Exceptionals - (0.9)

1999Euro ‘m

1998 *Euro ‘m

Change%

UNITED

KINGDOM

UNITED

KINGDOM

• Revenue split ... Revenue split ...

• Good start to 1999Good start to 1999

• IndependentIndependent turnaround: turnaround:•Only UK broadsheet to record circulation growthOnly UK broadsheet to record circulation growth•Circulation share up to 9.5%Circulation share up to 9.5%•Group editorial epicentreGroup editorial epicentre•New Editor named Editor of the Year in MarchNew Editor named Editor of the Year in March

• Regionals & Magazines: performing strongly in a Regionals & Magazines: performing strongly in a competitive marketplacecompetitive marketplace

99%1%

Publishing

Electronic

Dublin

Cork

Limerick

IrelandIreland

Turnover 139.6 127.0 +9.9%

EBITDA 36.2 32.8 +10.5%

Operating Profit 33.5 30.3 +10.7%

Margin (%) 24.0% 23.8%

Exceptionals - (0.9)

%Change

1999Euro ‘m

IrelandIreland

1998Euro ‘m

IRELAND

IRELAND

• Revenue split ...Revenue split ...

• Strong advertising growth and enhanced market Strong advertising growth and enhanced market shareshare

• All titles increased circulation (H1’99)All titles increased circulation (H1’99)

• Launch of Sunday colour magazineLaunch of Sunday colour magazine

• Value of cable business growingValue of cable business growing

• Continued economic growth forecastContinued economic growth forecast

• New printing plant on scheduleNew printing plant on schedule

92%

8%

Publishing

Electronic

Cape Town

Durban

Johannesburg

South AfricaSouth Africa

Pretoria

Kimberley

South AfricaSouth Africa

Turnover 83.3 98.4 -15.3%

EBITDA 10.6 13.9 -23.3%

Operating Profit 8.8 12.0 -26.6%

Margin (%) 10.5% 12.2%

Exceptionals - (0.6)

1999Euro ‘m

1998Euro ‘m

Change%

• Revenue split ...Revenue split ...

• Circulation increase for Circulation increase for The StarThe Star

• Readership increases across all titles in Gauteng and Readership increases across all titles in Gauteng and KwaZulu NatalKwaZulu Natal

• Significant benefits from restructuringSignificant benefits from restructuring

• Planned launch of GQ with Conde NastPlanned launch of GQ with Conde Nast

• Well positioned for the economic recoveryWell positioned for the economic recovery

SOUTH AF

RICA

SOUTH AF

RICA

99%1%

Publishing

Electronic

Independent DigitalIndependent Digital

Creatively led; Commercially driven

Digital MissionDigital Mission

• We recognise the mobility of our 45 million daily

consumers, and will invest in digital technology to

perform the Infomediary role across all

communication channels

Digital MissionDigital Mission

• Independent Digital leverages the Group’s local,

national & international content as well as new

content produced and packaged specifically for

digital distribution

Digital MissionDigital Mission

• Our media investments will act as a potent signpost

to our digital activities, and accelerate our

ambition to become key global destination sites

Current ActivitiesCurrent Activities

• Significant investment to date

• Current global activity: 40+ sites

20m page impressions/month

• Broad coverage of key destination categories:News Current Affairs EntertainmentMusic Recruitment Merchandising IT Financial ClassifiedsDirectories

Future ExpansionFuture Expansion

• E-commerce engines / e-commerce enabled sites

• Identifying the next e-categories and making strategic investments

• Potential links with global entertainment player

• Potential links with global online auction player

• Business-to-business investments

Future ExpansionFuture Expansion

• Consumer and business ISPs

• Ads-for-equity investments produce equity opportunities with significant potential upside

• Investment in global technology solutions that will enhance our ability to reach new markets, including areas such as copyright protection, database technologies and e-commerce mechanisms

TelephonyTelephony

• Independent Digital’s global rollout of InTouch as part of 3rd generation SMS and WAP technology

– Banking

– Gaming

– Ticketing

– Trading

• Expansion of existing telephony activities into more broad-based telecommunications, eg. call cards, account-based residential, mobile services & SMEs

• Facilitates entry to internet telephony

Group Strategy & OutlookGroup Strategy & Outlook

Group StrategyGroup Strategy

• Geographically diversifiedGeographically diversified

• Tight focus on CORE competenciesTight focus on CORE competencies

• Brand market leadership positionsBrand market leadership positions

• Margin enhancementsMargin enhancements

• Primary content provider across diverse media Primary content provider across diverse media platformsplatforms

• Target 20%+ Operating MarginsTarget 20%+ Operating Margins

• Migrate into revenue & profit enhancing New Media Migrate into revenue & profit enhancing New Media opportunitiesopportunities

• Deliver double-digit earnings growthDeliver double-digit earnings growth

• Enhance shareholder valueEnhance shareholder value

TargetsTargets

• Strong performance from New Zealand economy Strong performance from New Zealand economy

• Strong performance from Irish economyStrong performance from Irish economy

• Strong performance from Australian economyStrong performance from Australian economy

• Recovery in South African economyRecovery in South African economy

• Further circulation improvements in the UKFurther circulation improvements in the UK

• Significant benefits from restructuringSignificant benefits from restructuring

• On-track for double-digit earnings growthOn-track for double-digit earnings growth

Outlook for 2nd HalfOutlook for 2nd Half

Independent News & Media PLCIndependent News & Media PLC