Presentation on Cofina

Presentation on Cofina
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Main milestones
•
Cofina was formed in 1995 as a group holding
•
In 2005 the industrial assets were stripped out
•
–
Altri: pulp and paper
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Cofina: media
Main media milestones
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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)
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2004: launching of “Sábado” (newsmagazine)
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2006: acquisition of “Destak” (free daily newspaper)
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2007: launching of “Destak” in São Paulo (Brazil)
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Shareholders
Shareholder structure
102.6 million sahres
Open bylaws, no limitation rights
Strong management commitment
Management
44%
Free float
45%
Santander
5%
UBS
6%
2
Business overview
•
Best portfolio of daily newspapers in Portugal
Correio da Manhã
Generalist market leader
Cover price of 0.80€
Over 116K daily sales
Average audience:
917k readers
Record
Sports market leader
Cover price of 0.75€
Over 74K daily sales
Average audience:
719k readers
Destak
Free
Over 167K daily
distributed
Average audience:
609k readers
Jornal de Negócios
Business
Strategic mkt niche
Cover price of 1.5€
Over 7K daily sales
Average audience:
135k readers
3
Business overview
•
Balanced portfolio of 11 magazines covering the
main market segments
Sábado
Weekly newsmagazine
2nd in its segment
Systematically gaining
market share
Cover price: 2.8€
Over 73K weekly sales
Average audience: 265k
readers
TV Guia
Weekly TV guide
2nd in its segment
Cover price: 1.25€
Over 81K weekly sales
Average audience: 330k
readers
Flash
Weekly society & glamour
Cover price: 1.35€
Over 47K weekly sales
Average audience: 128k
readers
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Business overview
•
Balanced portfolio of 11 magazines covering the
main market segments
Fashion & female
monthly
Leisure & travel
monthly
Men monthly
Máxima
Vogue
Rotas e Destinos
GQ
Cover price: 3.0€
2nd in its segment
Cover price: 3.5€
Cover price: 3.8€
Cover price: 3.5€
3rd in its segment
Over 29K monthly
sales
2nd in its segment
Over 50K monthly
sales
Over 15K monthly
sales
Average audience:
186k readers
Average audience:
118k readers
Over 16K monthly sales
Average audience: 261k
readers
Audience not
available
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Business overview
•
Balanced portfolio of 11 magazines covering the
main market segments
IT monthly/weekly
Decor monthly
Auto monthly
PC Guia
Semana Informática
Máxima Interiores
Auto Motor
Cover price: 4.5€
Cover price: 1.8€
Cover price: 3.3€
Cover price: 3.3€
2nd in its segment
Audience not available
Over 14K monthly sales
Market leader
Average audience: 68k
readers
Over 20K monthly
sales
Over 21K monthly
sales
Average audience:
288k readers
Average audience:
218k readers
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Financial overview
Total revenues
CAGR 8%
134.6
144.0
129.7
131.3
134.6
100,1
EBITDA margin
12%
14%
15%
14%
10%
2003
2004
2005
2006
2007
2008
20.5
20.3
8%
EBITDA
CAGR 19%
13.8
16.2
17.8
2003
2004
2005
2006
2007
2008
8.5
2003
2004
2005
2006
2007
2008
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Newspapers evolution
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Market share in daily newspapers
over 40%
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Newspapers financial figures
Total revenues
Circulation
Advertising
Add ons
Operating costs
EBITDA
EBITDA margin
2005
2006
2007
2008
91.4
40.8
37.9
12.7
75.6
15.7
17.2%
91.6
41.1
40.1
10.5
74.5
17.1
18.6%
94.8
42.7
44.0
8.1
76.5
18.4
19.4%
102.9
44.3
44.8
13.7
84.7
18.2
17.6%
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Strong commitment to operating
efficiency and cost control
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“Correio da Manhã” and “Record” are
market leaders in its segments
Ch %
08/07
+8.5%
+4%
+2%
+69%
+11%
-1%
-1.7 pp
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Correio da Manhã
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Market leader in Portugal
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Leader in classified adds in
the Lisbon area
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Market share of 34%
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Sistematically gaining mkt
share since 2003
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Correio da Manhã
Paid circulation
Correio da Manhã vs peers (generalist daily newspapers)
source APCT
120.000
Correio da Manhã
Jornal de Notícias
110.000
Diário de Notícias
100.000
Público
24 Horas
Sold Copies (daily)
90.000
2000
Correio da Manhã
acquired by Cofina
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
1990
1991
1992
1993
1994
1995
1996
1997
1998
Leadership since 2003
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Other daily nespaper
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•
•
Record
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Leading sports newspaper in Portugal
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Mature market
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Fast growing revenues on the internet
Destak
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Leading free newspaper in Portugal
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59% stake with option to acquire 100%
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Fast growing market
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Internationalization to natural markets
Jornal de Negócios
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Launched as a weekly newspaper,
Jornal de Negócios was re-launched
in 2004 as daily newspaper
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Leading business site in Portugal
www.negocios.pt
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Strong growing potential
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Magazines evolution
•
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Portfolio development
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Acquisitions
(eg. TV Guia successful turnaround)
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New editions
(eg. Sábado newsmagazine)
Magazines financial figures
Total revenues
Circulation
Advertising
Add ons
Operating costs
EBITDA
EBITDA margin
2005
2006
2007
2008
38.4
15.5
14.8
8.1
37.9
0.5
1.3%
39.7
16.1
15.0
8.6
39.0
0.7
1.7%
39.8
16.2
17.9
5.8
37.6
2.2
5.5%
41.1
17.5
15.4
8.3
39.0
2.2
5.3%
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Strong potential to increase EBITDA
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Sábado: most valuable asset
Ch %
07/06
+3.3%
+8%
-14%
+43%
+4%
-1%
-0.2 pp
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Sábado newsmagazine
Paid circulation
Sábado vs market (newsmagazines)
source APCT
Sábado
Average thousand copies sold per week
Sábado market share
74.2
40%
65.2
34%
56.7
30%
48.7
22%
36.0
2004
36%
2005
2006
2007
2007
2004
2005
2006
The fastest growing newsmagazine
2006
2006
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Outlook: growth strategy
Organic
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Profitability increase
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Active portfolio management to maximize revenues
Tight cost control
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Continuous growth at EBITDA level
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•
Newspapers: room to increase market share
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–
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Non organic
Correio da Manhã is reinforcing is strong leadership
Record is now leader in audience
Magazines: focus on EBITDA growth
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Increase revenues (circulation, advertizing and monetize
investment in Sábado growth)
Synergies between newsrooms and commercial areas
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Outlook: growth strategy
Organic
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Non organic
Domestic consolidation
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Evaluate growth opportunities
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Value creation through turnaround and cost reduction
Other media opportunities
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Widen portfolio outside printing
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Still in a early phase
International opportunities
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Export business models to international natural markets
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Destak in Brazil (São Paulo & Rio de Janeiro)
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Final remarks
Cofina: a growth option
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Best domestic portfolio of press assets
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Leading daily newspapers: “Correio da Manhã” and “Record”
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Fastest growing newsmagazine: “Sábado”
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Leadership in business sites: www.negócios.pt
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Strategic presence in almost all segments
Strong management team
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Main focus: shareholder's return
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Solid track record: successful turnarounds
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Successful experience: integration of acquired assets
Fully equipped for future value creation
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Flexible cost base
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New media opportunities domestic and abroad
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