Steering committee meeting

Project „cap-X24“

Zagreb, 10.3.09

Mario Milošević

2

• Current status

• Accomplished tasks

• Occurred Problems

• New time schedule

• Plan/Actual cost comparison

• Next steps

• Modifications of financial matters for business plan

• Comparison initial and current business plan

Content

3

The project is currently in phase 3 of the

project time plan

• Continuous monitoring

of performance and quality

• Preparation for capacity

extension

Continuousimprovement

ConstructionCost

evaluationtiming

Building constructionEquipment installation

Start up new printing house

Project setup

• Clarification of basic

project strategies and

boundary conditions

• Definition project

idea project

•Study of space

possibilities

• 24 sata press layout

•Večernji list press

development

• Defining working

packages

• Evaluation of

construction costs

for the building

(inviting tenders;

negotiating offers)

•Relocation project

•New road

access project

•Consolidating and

preparing results

• Go Decision

• Signing construction

contract

• all permits activities

• Start market

research re. potential

external customers

for second

investment

• Hiring key staff for

new printing house

(training)

• Clarifying legal

matters

•Preparing land for

construction

• Construction works

new printing house

• Negotiation and

signing contracts

with CTP and

mailroom suppliers

• Installation of

press, mailroom,

CtP

• Final inspection

and acceptance of

building

• press

test production

• Final inspection &

acceptance of

24 sata press

• Production of

first sellable copy

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

4

Tasks accomplished

• Subproject „relocation I“ (power supply relocation) finished on 25.2.

• Subproject „relocation II“ (hot water and heating) finished on 28.2.

• All big contracts are ready negotiated

printing press manroland GEOMAN signed

architect ADG signed

main contractor for construction Beton Lucko signed

mailroom FERAG ready negotiated

CtP line AGFA ready negotiated

• Request for location & building permit has been filed

• Building construction started on 28th February 09, 11.50h

5

Some unexpected situations make the

project progress difficult

• The legal building construction will start on 1st of April 08

Due to a new construction law in Croatia a new contract has to be concluded between

VL and TZ in order to settle the ownership structures of the land.

VL and TZ signed a temporary agreement which should suffice for issuing the building

permit according to the legal advisors. Meanwhile TZ and VL work on a permanent

solution.

• Under earth surprises: In the course of excavations cables were found

which should not exist according to official drawings. Therefore these

workings turned out to be more sensitive, time intensive and more

expensive.

6

According to the new time schedule the

first sellable copy will be printed on 1st of August 09Feb 09 Mar 09 Apr 09 Mai 09 Oct 09Juni 09 Juli 09 Aug 09 Sep 09

Location permit

Relocation project I (Electricity)

Relocation project II (Hot water)

Relocation project III (Sewage, drinking water, optical cable)

Confirmation main project (building permit)

Hall construction

Press installation

InstallationFERAG-mailroom line

Installation CtP-line

Permit to run the site

Contract signing

12.3.

25.2.

28.2.

27.2.

1.4.

15.6.7.2.

29.4. 9.9.

15.6. 14.8.

18.6. 16.7.

1.8.

9.2.

4.2.

9.2.

16.2.

13.3.

17.9. 7.10.First sellable copy

19.2.

7

Currently the project costs are 4% under plan

Original option:

1-level printing press

Final option:

2-level printing press

according to

appropriation request

Current deviations

(19.2.2009) compared

to appropriation request

CtP € 400.000 € 400.000 -€ 1.000

Printing press € 6.601.696 € 5.330.000 -€ 50.000

Ferag € 1.250.000 € 1.250.000 -€ 15.000

Construction costs € 2.818.001 € 3.230.000 -€ 300.000

Consulting and fees € 590.303 € 830.000 -€ 87.000

Investment sum € 11.660.000 € 11.040.000 -€ 453.000

- 4%

8

Next steps / milestones until the next

steering committee meeting on 7th of April

13.3.09 Finalisation contracts FERAG and AGFA

1.4.09 Issuing location & building permit

1.4.09 Agreement on new Annex of the printing contract 24sata/TZ –

Management 24sata & Tiskara Zagreb

9

Questions & Answers

10

• The SAG-guarantee fee has been reduced from 2% to 0.75% (due to

the market comparison).

• The original depreciation period (12 years for building and assets)

has been changed to

- building: 50% 10 years, 50% remains residual value

- assets: 10 years

• ERP – financing rejected

ERP would have meant 2 years free of repayment, remaining term

subsidised.

Instead, a financing on the free market has been chosen, which does

not mean any worsening for the time being, due to the currently

favourable interest rate.

Conditions: 3 months EURIBOR +0,60, currently appr. 3.5%.

The interest rates are changeable in the following years.

In spite of exchange rate risks a EURO-loan was taken which results in significant

advantages regarding interests for 24sata and at group level. 24sata would only

have a disadvantage in case of negative effects of the €-loan (exchange rate)

Modifications of financial matters

11

The original*) business plan contained a

depreciation period of 12 years and financing by ERP-loan

in TEUR year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Businessplan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Sum

Turnover 24SATA indirect costs incl. 5% 1.060 1.817 1.817 1.817 1.817 1.817 1.817 1.817 1.817 1.817 1.817 1.817 757 21.800

Turnover 24SATA direct costs 109 187 187 187 187 187 187 187 187 187 187 187 78 2.242

Sales 1.169 2.004 2.004 2.004 2.004 2.004 2.004 2.004 2.004 2.004 2.004 2.004 835 24.042

Material / energy costs -151 -259 -259 -259 -259 -259 -259 -259 -259 -259 -259 -259 -114 -3.108

Staff costs -206 -339 -339 -339 -339 -339 -339 -339 -339 -339 -339 -339 -212 -4.152

Maintenance costs -133 -214 -241 -261 -275 -285 -592 -298 -305 -312 -318 -325 -97 -3.656

Other costs -50 -86 -86 -86 -86 -86 -86 -86 -86 -86 -86 -86 -36 -1.031

EBITDA Contribution 628 1.106 1.079 1.058 1.045 1.035 728 1.021 1.015 1.008 1.001 994 376 12.094

Gain from Sale fixed Asset CTP 0 0 0 0 0 0 0 0 0 0 0 0 240 240

Gain from Sale fixed Asset Building 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Net Book Value CTP 0 0 0 0 0 0 0 0 0 0 0 0 -240 -240

Net Book Value Building 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Depreciation -564 -967 -967 -967 -967 -967 -967 -967 -967 -967 -967 -967 -403 -11.600

EBIT Contribution 64 139 112 92 78 68 -239 55 48 41 34 28 -26 494

Financial Result Interests -629 -620 -576 -528 -478 -449 -394 -336 -274 -209 -164 -92 -33 -4.783

Guarantee fee SAG -210 -207 -192 -176 -159 -150 -131 -112 -91 -70 -55 -31 -11 -1.594

EBT Contribution -775 -688 -656 -613 -559 -531 -764 -393 -318 -237 -184 -94 -70 -5.883

Cost coverage external 202 346 346 346 346 346 346 346 346 346 346 346 144 4.152

SAG cost coverage 135 231 231 231 231 231 231 231 231 231 231 231 96 2.768

EBT -438 -111 -79 -36 17 46 -187 183 259 339 393 482 170 1.038

*) business plan added to appropriation request 22.8.08, investment sum € 11.040.000

12

In the new*) business plan the yearly indirect costs

are reduced by € 90.000 according to the current status

in TEUR year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Businessplan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Sum

Turnover 24SATA indirect costs incl. 5% 1.005 1.723 1.723 1.723 1.723 1.723 1.723 1.723 1.723 1.723 718 17.230

Turnover 24SATA direct costs 109 187 187 187 187 187 187 187 187 187 78 1.868

Sales 1.114 1.910 1.910 1.910 1.910 1.910 1.910 1.910 1.910 1.910 796 19.098

Material / energy costs -191 -327 -327 -327 -327 -327 -327 -327 -327 -327 -136 -3.272

Staff costs -206 -339 -339 -339 -339 -339 -339 -339 -339 -339 -133 -3.395

Maintenance costs -133 -214 -241 -261 -275 -285 -592 -298 -305 -312 -97 -3.013

Other costs -188 -86 -86 -86 -86 -86 -86 -86 -86 -86 -176 -1.137

EBITDA Contribution 396 943 916 896 883 872 566 859 852 846 253 8.282

Depreciation -571 -979 -979 -979 -979 -979 -979 -979 -979 -979 -408 -9.792

EBIT Contribution -175 -36 -63 -83 -97 -107 -413 -120 -127 -134 -155 -1.510

Financial Result Interests -373 -363 -331 -300 -267 -243 -215 -180 -145 -110 -59 -2.584

Guarantee fee SAG -80 -78 -71 -64 -57 -52 -46 -39 -31 -24 -13 -555

EBT Contribution -628 -477 -465 -447 -421 -402 -674 -339 -303 -267 -227 -4.649

Cost coverage external 191 328 328 328 328 328 328 328 328 328 137 3.282

Cost coverage SAG 128 219 219 219 219 219 219 219 219 219 91 2.188

EBT -309 70 82 100 126 145 -127 208 244 280 1 820

Slightly higher depreciation costs (12 TEUR) but favourable SAG-coverage

and financing

The yearly indirect costs are reduced from € 1.817.000 to € 1.723.000 currently

The results of the business plan can worsen due to disadvantageous interest rates

*) business plan version 10.3.2009, investment sum € 11.040.000