interim results 2001 5th september, 2001 independent news & media plc

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


• 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


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


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


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%


South Africa13%

Ireland26%

Australia22%

New Zealand

20%

United Kingdom

19%

H1 GROUP TURNOVER BY MARKET: €656.0m


H1 GROUP PROFIT BY MARKET: €109.3m

South Africa

8%

Ireland35%

Australia25%

New Zealand

22%

United Kingdom

10%


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


•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


•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 OUTDOOR operator

No. 1 Australasian RADIO operator

JV in Pan TV’s World Movies

Growing Asian OUTDOOR business


1%20%

36%

43%

Publishing OutdoorRadio New Media

COMPANY PROFILE



Turnover 154.9 159.5 - 2.9%

EBITDA 38.7 40.6 - 4.7%

Operating Profit 30.8 32.0 - 3.8%


AUSTRALIAN DIVISION


•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


COMPANY PROFILE



Turnover 96.5 92.3 4.6%

EBITDA 12.7 11.8 7.6%



SOUTH AFRICAN DIVISION

1%14% 85%

Publishing Print New Media


•Core circulations & readership UP- The Independent readership up 28.4%

- Belfast Telegraph readership up 8.9%

•Aggressive cover pricing implemented


•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


COMPANY PROFILE



Turnover 129.7 84.2 54.0%

EBITDA 14.8 1.0 -

Operating Profit 10.9 0.0 -


UNITED KINGDOM DIVISION

1%6%8%

11%74%

Nationals London RegionalsMagazines PrintNew Media


•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


No. 1 NATIONAL publisher


No. 1 WHOLESALER/ DISTRIBUTOR


2%21% 77%

Publishing Wholesaling

New Media

COMPANY PROFILE


€'m 2001 2000 Change

Turnover 172.6 153.4 12.5%

EBITDA 45.1 36.5 23.6%



IRISH DIVISION


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


• 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


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


• 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


OUTLOOK

• CORE businesses performing well

• ADVERTISING & CIRCULATION revenues trending

UP

• Continued focus on COSTS

• GLOBAL diversity underpinning growth


GLOBAL VISION LOCAL CONTENT

Independent News & Media PLCInterim Results 2001

5th September, 2001

interim results 2001 5th september, 2001 independent news & media plc

Documents

operating margin19

operating profit27

operating margins16

operating cash flow128

share dps2

share eps

pretax profit

strong h1