Presentation on Cofina
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Presentation on Cofina
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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)
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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
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• 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
Business overviewBusiness overview
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• Balanced portfolio of 11 magazines covering the main market segments
Fashion & femalemonthly
Leisure & travel monthly
Men monthly
Business overviewBusiness overview
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
Over 29K monthly sales
Average audience: 118k readers
Rotas e DestinosCover price: 3.8€
2nd in its segment
Over 16K monthly sales
Average audience: 261k readers
GQCover price: 3.5€
Over 15K monthly sales
Audience not available
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• Balanced portfolio of 11 magazines covering the main market segments
IT monthly/weekly Decor monthly Auto monthly
Business overviewBusiness overview
PC GuiaCover price: 4.5€
2nd in its segment
Over 21K monthly sales
Average audience: 288k readers
Semana InformáticaCover price: 1.8€
Audience not available
Máxima InterioresCover price: 3.3€
Over 14K monthly sales
Average audience: 68k readers
Auto MotorCover price: 3.3€
Market leader
Over 20K monthly sales
Average audience: 218k readers
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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
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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
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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
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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
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• 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
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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
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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
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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
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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)
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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