Interim Results 20015th September, 2001
Independent News & Media PLC
GLOBAL VISION LOCAL CONTENT
GLOBALISATION DELIVERS CONTINUED GROWTH
• Global Portfolio of Leading Brands
• Market Leaders
• Strong Cost Management
• Prudent New Media Strategy & Execution
Independent News & Media PLC
• Group Advertising Revenue
• Group Circulation Revenue
• Operating Costs tightly controlled
• Operating Margins
• €60m Irish production facility fully operational
• Successful integration of Belfast Telegraph Group
2001 HIGHLIGHTS
Independent News & Media PLC
2001 2000 Change
Euro'm Euro'm %(as restated)
Group Turnover 656.0 629.4 4.2%
Operating Profit * 109.3 96.3 13.5%
Profit Before Tax 57.6 69.6 - 17.2%
Net Profit 29.1 34.0 - 14.4%
Earnings per Share (EPS) ** 7.68 7.53 2.0%
Dividend per Share (DPS) 2.75 2.50 10.0%
Weighted Shares Outstanding (m) 516.7 514.4 0.4%
Operating Margins 16.7% 15.3% 8.9%
* Continuing activities before exceptionals
** Before exceptional items and amortisation
HEADLINE NUMBERS
Independent News & Media PLC
2001 SUMMARY BALANCE SHEET
30 June 30 June
2001 2000
Euro'm Euro'm(as restated)
Fixed Assets * 2,653 2,106
Other Net Assets/ (Liabilities) 118 49
Net Debt (1,563) (967)
Total Shareholders' Funds 1,208 1,188
Interest Cover (EBITDA/ Interest) 3.1x 4.5x
Net Debt to EBITDA 5.8x 4.0x
* Including the revalued elements of mastheads
Independent News & Media PLC
2001 SUMMARY OPERATING CASH FLOWS
2001 2000 Change
Euro'm Euro'm %(as restated)
Operating Profits 101.8 96.3 5.7%
Share of Associates & JVs 6.0 (0.4) -
Depreciation & Amortisation 27.2 24.1 12.9%
EBITDA 135.0 120.0 12.5%
Working Capital Movements (6.4) (10.6) - 39.6%
Operating Cash Flow 128.6 109.4 17.6%
Operating Cash Flow Conversion 95% 91% 4.5%
Independent News & Media PLC
South Africa13%
Ireland26%
Australia22%
New Zealand
20%
United Kingdom
19%
H1 GROUP TURNOVER BY MARKET: €656.0m
Independent News & Media PLC
H1 GROUP PROFIT BY MARKET: €109.3m
South Africa
8%
Ireland35%
Australia25%
New Zealand
22%
United Kingdom
10%
Independent News & Media PLC
3.31
3.88
4.45
2.94
2.40
5.16
6.29
7.537.68
6.54
2.00
3.50
5.00
6.50
8.00
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01
10 Year C.A.G.R.• Turnover +
24%• Operating Profit * + 26%• Pre-Tax Profit + 23%• Earnings Per Share + 17%• Dividends Per Share + 15%
Earnings per Share (€)(Fully diluted before exceptionals & goodwill
amortisation)
* Excluding exceptional items
EARNINGS PER SHARE: 10 YEAR PERFORMANCE
Independent News & Media PLC
•Marginal revenue decline compared to strong H1 2000
•Compensated by strong cost management
•H1 2001 Operating Profits + 7.9%
•Full year of Shared Services benefits
•Revenues strengthening into H2 2001
No. 1 NEWSPAPER publisher
No. 1 REGIONAL publisher
No. 1 RADIO operator
No. 1 COMMERCIAL PRINTER
No. 1 SECURITY PRINTER
Turnover by Activity:
1%18%
17%64%
Publishing PrintRadio New Media
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOK
€'m (constant FX) 2001 2000 Change
Turnover 138.7 140.0 - 0.9%
EBITDA 37.1 34.0 9.1%
Operating Profit 27.4 25.4 7.9%
Operating Margin 19.8% 18.1%
NEW ZEALAND DIVISION
Independent News & Media PLC
•Tough advertising market in 1st half
•Continued tight cost control
•Operating Profits down compared to a very strong H1 2000; Net Profit up
•Full year of Shared Services benefits
•Asian expansion on-track
No. 1 REGIONAL publisher
No. 1 OUTDOOR operator
No. 1 Australasian RADIO operator
JV in Pan TV’s World Movies
Growing Asian OUTDOOR business
Turnover by Activity:
1%20%
36%
43%
Publishing OutdoorRadio New Media
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOK
€'m (constant FX) 2001 2000 Change
Turnover 154.9 159.5 - 2.9%
EBITDA 38.7 40.6 - 4.7%
Operating Profit 30.8 32.0 - 3.8%
Operating Margin 19.9% 20.1%
AUSTRALIAN DIVISION
Independent News & Media PLC
•Revenue growth in 1st half
•Strong cost management
•H1 2001 Operating Profits +12.6%
•Pending acquisition of Corpcom - EPS enhancing
•Circulations: 10 out of 14 titles UP – all competitors significantly down
No. 1 METROPOLITAN/ NATIONAL publisher (14 out of 25 titles)
Acquisition of No. 1 OUTDOOR operator through new JV with Clear Channel pending
No. 1 News & Current Affairs Website
Turnover by Activity:
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOK
€'m (constant FX) 2001 2000 Change
Turnover 96.5 92.3 4.6%
EBITDA 12.7 11.8 7.6%
Operating Profit 10.7 9.5 12.6%
Operating Margin 11.1% 10.3%
SOUTH AFRICAN DIVISION
1%14% 85%
Publishing Print New Media
Independent News & Media PLC
•Core circulations & readership UP- The Independent readership up 28.4%
- Belfast Telegraph readership up 8.9%
•Aggressive cover pricing implemented
•Strong cost management
•Newsprint price reductions achieved in Q2
Leading NATIONAL titles in G.B. & Northern Ireland
No. 1 PUBLISHER in Northern Ireland
No. 2 London REGIONAL publisher
No. 1 London RECRUITMENT magazine publisher
No. 1 EDUCATIONAL COURSES magazine publisher
Turnover by Activity:
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOK
€'m (constant FX) 2001 2000 Change
Turnover 129.7 84.2 54.0%
EBITDA 14.8 1.0 -
Operating Profit 10.9 0.0 -
Operating Margin 8.4% 0.0%
UNITED KINGDOM DIVISION
1%6%8%
11%74%
Nationals London RegionalsMagazines PrintNew Media
Independent News & Media PLC
•Successful commissioning of CITYWEST
•Strong ADVERTISING growth & significant gains in MARKET SHARE
•Strong CIRCULATION growth- Irish Independent achieves 18 year high- The Star achieves all-time high
•Strong cost management
No. 1 NATIONAL publisher
No. 1 REGIONAL publisher
No. 1 WHOLESALER/ DISTRIBUTOR
Turnover by Activity:
2%21% 77%
Publishing Wholesaling
New Media
COMPANY PROFILE
2001 PERFORMANCE & OUTLOOK
€'m 2001 2000 Change
Turnover 172.6 153.4 12.5%
EBITDA 45.1 36.5 23.6%
Operating Profit 39.6 33.0 20.0%
Operating Margin 22.9% 21.5%
IRISH DIVISION
Independent News & Media PLC
NEW MEDIA
€'m 2001 2000Turnover 4.3 4.8Operating Losses (3.3) (7.2)
Group Web Stats: No. of Web Sites 45 46 Page Impressions / month 83m 57m
Headcount 162 284
NEW MEDIA STATS
• Prudent New Media strategy and execution
• Extension of core brands
• Pro-active cost management- Headcount down 43%
• Significant reduction in Operating Losses, as
forecasted
Independent News & Media PLC
• Excellent first half - 89% revenue growth on H2 2000
• Controlling costs – Q2 cash outflow only
£1.8m, same as Q1
• Growth continuing into 2nd half
• Well positioned for mobile future with:-
- Fully funded business model
- Powerful international relationships
- Strong cash position – Stg£44.2m in hand
iTOUCH PLC
Independent News & Media PLC
iTOUCH PLC - Global SpreadStrategic alliances with local media
providers and mobile network operators
Media Partner: Independent News & Media PLCNetwork Operator:
Eircell United Kingdom
Media Partner: Independent News & Media(UK) Limited
Network Operator: Vodafone, BT Cellnet
Media Partner: Independent News & MediaNetwork Operator: Vodacom and MTN
Media Partner: Wilson & HortonNetwork Operator: Vodafone
Media Partner: APNNetwork Operator: Vodafone, Optus, Telstra, Orange
Media Partner: Globes/MonitinNetwork Operator:
Cellcom, Pelephone,
MIRS
Media Partner: Netmed & M-Web (MIH)Network Operator: (Being negotiated)
Media Partner: M-Web & Astrada (MIH) Network Operator:
Excelcomindo
Media Partner: UBC & M-Web (MIH)Network Operator: (Being negotiated)
Ireland
Thailand
Indonesia
South Africa
Greece
Israel
New ZealandAustralia
Independent News & Media PLC
• GEOGRAPHICALLY diversified - with tight focus on core competencies
• Unique BRAND leadership positions - dominant in 4
out of 5 markets
• Advertising UP in contrast to competitors
• Circulations UP in contrast to competitors
• Major capital expenditure programme now COMPLETED
• HIGHLY cash generative business
• Clear strategy for operating margin ENHANCEMENTS
SUMMARY
Independent News & Media PLC
OUTLOOK
• CORE businesses performing well
• ADVERTISING & CIRCULATION revenues trending
UP
• Continued focus on COSTS
• GLOBAL diversity underpinning growth
Independent News & Media PLC
GLOBAL VISION LOCAL CONTENT
Independent News & Media PLCInterim Results 2001
5th September, 2001