presentation on cofinafashion & female monthly leisure & travel monthly men monthly business...

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Presentation on Cofina

1

Main milestonesMain milestones

• Cofina was formed in 1995 as a group holding

• In 2005 the industrial assets were stripped out– Altri: pulp and paper

– Cofina: media

• Main media milestones– 1995: Started with 5M€ capital

– 1999: Acquistion of Investec (media holding)

– 2000: acquisition of “Correio da Manhã” (daily newspaper)

– 2002: acquisition of “TV Guia” (TV magazine)

– 2004: launching of “Sábado” (newsmagazine)

– 2006: acquisition of “Destak” (free daily newspaper)

– 2007: launching of “Destak” in São Paulo (Brazil)

2

Shareholder structure102.6 million sahres

Open bylaws, no limitation rightsStrong management commitment

Management44%

Santander5%

Free float45%

ShareholdersShareholders

UBS6%

3

Business overviewBusiness overview

• Best portfolio of daily newspapers in Portugal

Correio da ManhãGeneralist market leaderCover price of 0.80€Over 116K daily salesAverage audience: 917k readers

RecordSports market leaderCover price of 0.75€Over 74K daily salesAverage audience: 719k readers

DestakFreeOver 167K daily distributedAverage audience: 609k readers

Jornal de NegóciosBusinessStrategic mkt nicheCover price of 1.5€Over 7K daily salesAverage audience: 135k readers

4

• Balanced portfolio of 11 magazines covering the main market segments

SábadoWeekly newsmagazine2nd in its segmentSystematically gaining market shareCover price: 2.8€Over 73K weekly salesAverage audience: 265k readers

TV GuiaWeekly TV guide2nd in its segmentCover price: 1.25€Over 81K weekly salesAverage audience: 330k readers

FlashWeekly society & glamourCover price: 1.35€Over 47K weekly salesAverage audience: 128k readers


5


Fashion & femalemonthly

Leisure & travel monthly

Men monthly


MáximaCover price: 3.0€2nd in its segment

Over 50K monthly sales

Average audience: 186k readers

Vogue Cover price: 3.5€3rd in its segment



Rotas e DestinosCover price: 3.8€

2nd in its segment



GQCover price: 3.5€


Audience not available

6


IT monthly/weekly Decor monthly Auto monthly


PC GuiaCover price: 4.5€

2nd in its segment



Semana InformáticaCover price: 1.8€

Audience not available

Máxima InterioresCover price: 3.3€



Auto MotorCover price: 3.3€

Market leader



7

Total revenues

EBITDA

EBITDA margin100,1

2003

134.6

2004

129.7

2005

131.3

2006

8.5

2003

13.8

2004

16.2

2005

17.8

2006

8%

2003

10%

2004

12%

2005

14%

2006

CAGR 19%

CAGR 8%

Financial overviewFinancial overview

2007

134.6

2007

20.5

15%

2007

2008

144.0

2008

20.3

14%

2008

8

Newspapers evolutionNewspapers evolution

• Market share in daily newspapers over 40%

• Newspapers financial figures

• Strong commitment to operating efficiency and cost control

• “Correio da Manhã” and “Record” are market leaders in its segments

Total revenuesCirculationAdvertisingAdd ons

Operating costsEBITDAEBITDA margin

+8.5%+4%+2%

+69%+11%

-1%-1.7 pp

91.440.837.912.775.615.7

17.2%

2005

91.641.140.110.574.517.1

18.6%

2006Ch %

08/07

94.842.744.08.1

76.518.4

19.4%

2007

102.944.344.813.784.718.2

17.6%

2008

9

Correio da ManhãCorreio da Manhã

• Market leader in Portugal

• Leader in classified adds in the Lisbon area

• Market share of 34%

• Sistematically gaining mkt share since 2003

10

Correio da Manhã vs peers (generalist daily newspapers)source APCT

Paid circulation

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

110.000

120.000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Sold

Copie

s (d

aily

)

Correio da Manhã

Jornal de Notícias

Diário de Notícias

Público

24 Horas

Leadership since 2003Leadership since 2003

2000Correio da Manhã acquired by Cofina

Correio da ManhãCorreio da Manhã

2007 2008

11

• Record– Leading sports newspaper in Portugal– Mature market– Fast growing revenues on the internet

• Destak– Leading free newspaper in Portugal– 59% stake with option to acquire 100%– Fast growing market– Internationalization to natural markets

• Jornal de Negócios– Launched as a weekly newspaper,

Jornal de Negócios was re-launched in 2004 as daily newspaper

– Leading business site in Portugal www.negocios.pt

– Strong growing potential

Other daily nespaperOther daily nespaper

12

Magazines evolutionMagazines evolution

• Portfolio development– Acquisitions

(eg. TV Guia successful turnaround)

– New editions (eg. Sábado newsmagazine)

• Magazines financial figures

• Strong potential to increase EBITDA

• Sábado: most valuable asset

Total revenuesCirculationAdvertisingAdd ons

Operating costsEBITDAEBITDA margin

+3.3%+8%-14%

+43%+4%-1%

-0.2 pp

38.415.514.88.1

37.90.5

1.3%

2005

39.716.115.08.6

39.00.7

1.7%

2006Ch %

07/06

39.816.217.95.8

37.62.2

5.5%

2007

41.117.515.48.3

39.02.2

5.3%

2008

13

SábadoAverage thousand copies sold per week

Sábado market share

The fastest growing newsmagazine The fastest growing newsmagazine

36.0

2004

48.7

2005

56.7

2006

30%

22%

2004 2005

34%

2006

SSáábado bado newsmagazinenewsmagazine

Sábado vs market (newsmagazines)source APCT

Paid circulation

65.2

2007

36%

2006

74.2

2007

40%

2006

14

Outlook: growth strategyOutlook: growth strategy

Organic Non organic

• Profitability increase– Active portfolio management to maximize revenues– Tight cost control– Continuous growth at EBITDA level

• Newspapers: room to increase market share– Correio da Manhã is reinforcing is strong leadership– Record is now leader in audience

• Magazines: focus on EBITDA growth– Increase revenues (circulation, advertizing and monetize

investment in Sábado growth)– Synergies between newsrooms and commercial areas

15

Outlook: growth strategyOutlook: growth strategy

Organic Non organic

• Domestic consolidation

– Evaluate growth opportunities

– Value creation through turnaround and cost reduction

• Other media opportunities

– Widen portfolio outside printing

– Still in a early phase

• International opportunities

– Export business models to international natural markets

– Destak in Brazil (São Paulo & Rio de Janeiro)

16

Final remarksFinal remarks

• Best domestic portfolio of press assets

– Leading daily newspapers: “Correio da Manhã” and “Record”

– Fastest growing newsmagazine: “Sábado”

– Leadership in business sites: www.negócios.pt

– Strategic presence in almost all segments

• Strong management team

– Main focus: shareholder's return

– Solid track record: successful turnarounds

– Successful experience: integration of acquired assets

• Fully equipped for future value creation

– Flexible cost base

– New media opportunities domestic and abroad

Cofina: a growth optionCofina: a growth option

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