2011 Full Year Results

Milan, 16 March 2012

Agenda

Market Trends & Digital Business

2011 Full Year Results and Intervention Plan
Details by Business Unit

Advertising Italy: FY11 Market Trends

Excluding World Cup
Event

Advertising Gross Revenues, Million Euro

8.778
566

(%)

8.480

Market

+12.3%
-12.0%
-7.8%

+15.4%

+19.5%

-3.4%

636
117
434

Online *
Outdoor
Radio

799

Magazines

-3.7%

-3.1%

-2.9%

1.301

Newspapers **

-5.8%

-5.8%

-2.7%

4.775

4.627

TV

-3.1%

623

566

Other ***

-9.2%

470

133

830
1.381

2010
3

(%)

(%)

-3.4%

TOTAL MARKET

2011

* Excluding Search Adv

** Excluding Free Press
*** Including: Cinema, Cards and Direct Mail
Source: Nielsen Media Research (excluding Free Press, Transit, Out of Home TV)

RCS

Advertising Spain: FY11 Market Trends

Excluding World Cup
Event

Advertising Gross Revenues, Million Euro

-8.2%

5.158
4.735

20
359

(%)

(%)

(%)

Market

-8.2%

Cinema

+4.1%

Outdoor
Internet *

-6.1%
+7.8%

+5.5%

+9.2%

498

20
386
269

497

471

Radio

-5.4%

-1.8%

-1.8%

464

Magazines**

-6.5%

-1.4%

-1.4%

Newspapers

-12.9%

-11.4%

-7.9%

TV

-9.7%

+1.5%

+1.5%

286

1.113
970

2.387

2010

2.155

TOTAL MARKET

4 * Including Search Adv

* * Including Sundays
Source: Arce Media

2011

RCS

Italian Newspapers Circulation: RCS vs. Market

Circulation, copies/000 per day

National Newspapers

+2.3%
including
digital copies

(1)

- 2.1%

482

928

909

FY10

FY11

- 1.7%

474

FY10

FY11

Sport Newspapers
625

- 8.8%

- 5.8%

589

FY10

FY11

MARKET
5

(1)

Includes la Repubblica and Corriere della Sera

Source: FIEG + Internal Estimates

330

301

FY10

FY11

RCS

- 6.9%
including
digital copies

Italy Online Readership

Million Users

Workday Unique Users

Monthly Unique Visitors

25.1%

30.7%

0.3

0.4

2004

2005

0.6

2006

0.8

2007

1.0

2008

1.3

2009

1.6

2010

1.9

2011

23.3

18.6

Dec 2010

Dec 2011
3.1%

27.1%

0.2

0.2

2004

2005

0.3

2006

0.5

2007

0.6

2008

Source: Audiweb, Nielsen Online - SiteCensus

0.8

2009

0.8

2010

0.9

2011

10.6

11.0

Dec 2010

Dec 2011

Spain Newspapers Circulation: RCS vs. Market

Circulation, copies/000 per day

Generalist Newspapers

-8.3%
including
digital copies

(1)

- 7.4%

1.557

1.442

FY10

FY11

286

- 11.6%

253

FY11

FY10

Sport Newspapers

- 10.8%

- 7.7%

684

631

FY10

FY11

275

245

FY11

FY10

Financial Newspapers
82
FY10
7

- 5.1%

- 6.7%

MARKET

76

40

FY11

FY10

(1) Includes newspapers with circulation > 100,000 copies

Sources: OJD

-10.1%
including
digital copies

38

RCS

FY11

0.8%
including
digital copies

Spain Online Readership

Million Users

Workday Unique Users

11.4%

1.8

2.0

FY 11

FY10

2.4

21.1%

FY10

2.9

FY 11

30.6%

0.2

0.2

FY10

FY 11

Monthly Unique Visitors

13.3%

25.5

15.1%

28.8

27.7

31.9
36.6%

2.6
Dec 2010

Dec 2011

Source: Nielsen Net Rating (OJD)

Dec 2010

Dec 2011

Dec 2010

3.5

Dec 2011

RCS Digital Editions

Spain

Italy

Active Subscribers @ 31/12/11

Active Subscribers @ 31/12/11

71.000

Corriere

Gazzetta

@ 31/12/2010

Source: Internal Estimates

22.000

50.000

Magazines

El Mundo

Expansion

20.500

Marca

Digital Revenues
Million Euro @ 31/12/11

24

121

74

97

47

Advertising

YoY Growth

10

Paid Content,
E-Commerce
& B2B

TOTAL

Italy

+16%

+21%

Spain

+9%

Agenda

Market Trends & Digital Business

2011 Full Year Results and Intervention Plan
Details by Business Unit

11

2011 Full Year Results - Summary

Million Euro

4Q11

4Q10

4Q10LfL

LfL % FY 2011

FY 2010

FY 2010LfL

LfL %

Total Revenues
Circulation
Advertising
Other

563,1
293,1
215,1
54,8

10 0 %

610,6
313,4
232,3
64,9

10 0 %

577,7
297,0
232,3
48,4

10 0 %

(2,5%) 2.075,0
(1,2%) 1.101,1
(7,4%) 730,9
13,2% 243,0

10 0 %

2.255,3
1.217,1
759,6
278,6

10 0 %

2.131,8
1.135,0
759,6
237,2

10 0 %

(2,7%)
(3,0%)
(3,8%)
2,4%

EBITDA ex Non Recurring Items

93,6

16 ,6 %

77,1

12 ,6 %

72,3

12 ,3 %

32,0%

9 ,1%

199,4

8 ,8 %

186,0

8 ,2 %

1,4%

Non Recurring Items

(8,8)

EBITDA

84,7

8 ,2 %

(10,0%)

(3,4)
15,0 %

73,7

(2,1)
12 ,1%

70,2

188,6
(21,1)

11,9 %

23,0%

167,5

(1,6)
8 ,1%

197,8

EBIT

(289,9)

29,3

(283,8)

69,8

Net Result

(296,5)

6,5

(322,0)

7,2

(938,2)

(970,8)

NFP

12

0,0
8 ,8 %

186,0

(1) GE Fabbri Ltd was sold on 21 January 2011, while Delagrave was sold on 9 December 2010: in the Full Year 2010, these two companies
reported revenue of EUR 79 million and EUR 3.7 million respectively, and EBITDA of EUR 8,4 million and EUR -0.7 million respectively. On 31 May
2011, the sale of 100% of Dada.net was completed. This resulted in a drop in revenue in the full year 2011 of EUR 40,8 million compared with
2010, and a fall in EBITDA of EUR 5,7 million, excluding EUR 1,6 million in non-recurring expenses.

Intervention Plan May 2009

Million Euro

The target of the first Intervention Plan (launched in May 2009) was considerably exceeded, totalling
benefits of approx EUR 255 million

17 17

29
Target: 200 mln Euro

67
159

2009

13

226

255

2010

2011

Intervention Plan November 2011

In view of the ongoing uncertainty in the market, the Group has also implemented a new cost-containment initiative
in Spain and Italy, from which are expected benefits of approx. EUR 70 million to be achieved in 2012 (EUR 100
million compared to the Three-Year Plan for 2011-2013)
Million Euro

25
Production costs

32
Spain

7
Labour Costs &
Others

70
13
Production costs

38
Italy

8
Procurement
17
Labour Costs &
Others

14

2011 Full Year Results Profit & Loss

Million Euro
4Q11

Circulation
Advertising
Other

293,1
215,1
54,8

52,1%

TOTAL REVENUES

563,1

Operatingcosts
Labourcosts(exnonrecurringcosts)
Writedowns
Provisions

(346,6)
(110,5)
(7,5)
(4,9)

4Q10LfL(1)

4Q10
51,3%

9,7%

313,4
232,3
64,9

100%

610,6

38,2%

(61,6%)
(19,6%)
(1,3%)
(0,9%)

(398,9)
(117,4)
(7,9)
(9,3)

FY11
48,6%

10,6%

297,0
232,3
48,4

100%

577,7

38,0%

(65,3%)
(19,2%)
(1,3%)
(1,5%)

(376,2)
(114,4)
(7,9)
(6,9)

53,1%

7,9%

1.101,1
730,9
243,0

100%

2.075,0

38,0%

(61,6%)
(18,7%)
(1,3%)
(1,1%)

(1.408,2)
(444,3)
(23,6)
(10,3)

EBITDA ex Non Recurring Items

93,6

16,6%

77,1

12,6%

72,3

11,8%

188,6

NonRecurringItems

(8,8)

(1,6%)

(3,4)

(0,6%)

(2,1)

(0,3%)

(21,1)

EBITDA

84,7

15,0%

73,7

12,1%

70,2

11,5%

167,5

(5,9%)

(3,2%)

D&A
Impairmentwriteoffs
NonRecurringItems

(33,4)
(339,0)
(2,2)

(60,2%)
(0,4%)

(19,6)
(24,8)
0,0

EBIT

(289,9)

(51,5%)

29,3

Netfinancialincomes(charges)
(9,6)
Gain(losses)onfinancialassets/liabiliti (2,0)
Income(charges)fromequityinvestmen 0,8

(1,7%)

(7,7)
(1,5)
0,9

PRE-TAX RESULT

Taxes
Minorities
NET RESULT

15

(0,4%)
0,1%

(300,7)

(53,4%)

21,0

(4,0)
8,2

(0,7%)

(19,3)
4,8

(296,5)

(52,7%)

1,5%

6,5

54,0%

11,7%

1.217,1
759,6
278,6

100%

2.255,3

35,2%

(67,9%)
(21,4%)
(1,1%)
(0,5%)
9,1%
(1,0%)
8,1%
(5,2%)

(1.562,4)
(454,7)
(23,9)
(14,8)
199,4

(1,6)
197,8

(16,3%)

0,0%

(108,7)
(339,0)
(3,6)

4,8%

(283,8)

(13,7%)

69,8

(1,3%)

(1,5%)

0,1%

(30,8)
(2,7)
(6,0)

(0,3%)

(29,2)
3,4
0,0

3,4%

(323,3)

(15,6%)

44,0

(3,2%)

(11,3)
12,6

(0,5%)

0,8%

(41,6)
4,8

1,1%

(322,0)

(15,5%)

(4,1%)

(0,2%)

(2)

FY10LfL(1)

FY10

(0,2%)

(0,1%)

0,6%

(103,2)
(24,8)
0,0

7,2

53,2%

12,4%

1.135,0
759,6
237,2

100%

2.131,8

100%

33,7%

(69,3%)
(20,2%)
(1,1%)
(0,7%)

(1.462,2)
(447,2)
(23,9)
(12,4)

8,8%
(0,1%)
8,8%
(4,6%)
(1,1%)
0,0%
3,1%
(1,3%)
0,2%
0,0%
2,0%
(1,8%)
0,2%
0,3%

(1) GE Fabbri Ltd was sold on 21 January 2011, while Delagrave was sold on 9 December 2010: in the Full Year 2010, these two companies reported
revenue of EUR 79 million and EUR 3.7 million respectively, and EBITDA of EUR 8,4 million and EUR -0.7 million respectively. On 31 May 2011, the
sale of 100% of Dada.net was completed. This resulted in a drop in revenue in the full year 2011 of EUR 40,8 million compared with 2010, and a fall in
EBITDA of EUR 5,7 million, excluding EUR 1,6 million in non-recurring expenses.
(2) Includes 7.2 million Euro of tangible and intangible assets write-offs

186,0

0,0
186,0

35,6%
11,1%

(68,6%)
(21,0%)
(1,1%)
(0,6%)
8,7%
0,0%
8,7%

2011 Full Year Results Breakdown Revenues & Ebitda

Million Euro
FY2011

FY2011 EX Non Recurring Items

Revenues EBITDA ROS%

Revenues

EBITDA

ROS%

FY2010

FY2010 EX Non Recurring Items

Revenues EBITDA ROS%

Revenues EBITDA

ROS%

Newspapers Italy

634,0

106,6

16,8%

634,0

103,3

16,3%

626,4

108,2

17,3%

626,4

97,4

15,6%

Unidad Editorial

495,6

27,1

5,5%

495,6

36,0

7,3%

531,3

41,0

7,7%

531,3

44,5

8,4%

Magazines

231,1

4,6

2,0%

231,1

7,3

3,2%

238,0

4,7

2,0%

238,0

4,7

2,0%

Advertising

431,2

(10,3) (2,4%)

431,2

(10,3)

(2,4%)

454,7

(8,7) (1,9%)

454,7

(8,7)

(1,9%)

Books

513,3

36,8

7,2%

513,3

43,5

8,5%

523,6

36,0

6,9%

523,6

40,3

7,7%

Dada

111,2

7,9

7,1%

111,2

11,5

10,3%

110,7

5,8

5,2%

110,7

8,1

7,3%

Digicast

23,9

8,6

36,0%

23,9

9,4

39,2%

27,3

11,2

41,0%

27,3

11,6

42,5%

Corporate Activities

50,9

(13,8)

ns

50,9

(12,0)

ns

54,6

(12,2)

ns

54,6

(11,9)

ns

Others and eliminations

(416,2)

0,0

ns

(416,2)

0,0

ns

(434,8)

0,0

ns

(434,8)

0,0

ns

2.075,0

167,5

8,1%

2.075,0

188,6

9,1%

2.131,8

186,0

8,7%

2.131,8

186,0

8,7%

79,0
40,8
3,7

8,4
4,1
(0,7)

79,0
40,8
3,7

8,4
5,7
(0,7)

2.255,3

197,8

2.255,3

199,4

TOTAL RCS LfL

GEF (1)
Dada.net (1)
Delagrave (1)
TOTAL RCS

16

2.075,0

167,5

8,1%

2.075,0

188,6

9,1%

8,8%

(1) GE Fabbri Ltd was sold on 21 January 2011, while Delagrave was sold on 9 December 2010: in the Full Year 2010, these two companies reported
revenue of EUR 79 million and EUR 3.7 million respectively, and EBITDA of EUR 8,4 million and EUR -0.7 million respectively. On 31 May 2011, the
sale of 100% of Dada.net was completed. This resulted in a drop in revenue in the full year 2011 of EUR 40,8 million compared with 2010, and a fall in
EBITDA of EUR 5,7 million, excluding EUR 1,6 million in non-recurring expenses.

8,8%

2011 Full Year Results Cash Flow Variance

Million Euro

NFP 01/01/11 Acquisitions

Disposals

CAPEX

Dividends

Others

Operating
Cash Flows

NFP 31/12/11

-938
-971
-37

2010

1.057

-27

49

18

-54

-51

-55

126

-36

180

Total Credit Line of 1.7 bn, of which approx. 1.0 bn secured until 2013 with no Covenants
17

-971

Balance Sheets
Million Euro

31.12.2011
Net fixed assets

31.12.2010

1.877,1

114,4%

2.299,5

112,8%

Tangible & Intangible fixed assets

1.529,3

93,2%

1.954,8

95,9%

Financial fixed assets

347,8

21,2%

344,7

16,9%

16,1

1,0%

37,2

1,8%

(191,3)

(11,7%)

(231,9)

(11,4%)

(61,0)

(3,7%)

(69,9)

(3,4%)

0,0

0,0%

3,3

0,2%

CAPITAL EMPLOYED

1.640,9

100,0%

2.038,2

100,0%

Net financial debt (cash)

938,2

57,2%

970,8

47,6%

Equity

702,7

42,8%

1.067,4

52,4%

1.640,9

100,0%

2.038,2

100,0%

Net working capital

Reserve for risks and charges
Employee termination indemnity
Net invested capital: assets held for sale

EQUITY & NFD

18

Agenda

Market Trends & Digital Business

2011 Full Year Results and Intervention Plan
Details by Business Unit

19

Newspapers Italy P&L

604.5 mln monthly page views
23.3 mln monthly unique users

Circ. 498,000 avg. daily copies (1)

Read. 3,430,000 per day

Circ. 310,000 avg. daily copies (1)

Read. 4,377,000 per day

362.6 mln monthly page views

11.0 mln monthly unique users
Nielsen Online, SiteCensus, ADS + Internal Estimates, Audipress

Million Euro

4Q11

4Q10

634,0

626,4

20,3

84,6

83,8

1,2%
1,0%

36,3

24,1

50,6%

103,3

97,4

6,1%

0,9

4,5

3,3

10,8

37,2

28,6

106,6

108,2

163,1

O/W Add-ons

21,6

EBITDA ex NR Items
Non Recurring Items

3,9%
(4,2%)
164,3%

30,1%

o/w 14.2%
Digital ADV

20
(1) Digital copies included

YoY

2,4%
6,4%

167,0

EBITDA

FY10
308,9
292,1
25,4

75,1
85,2
2,8

TOTAL REVENUES

FY11
317,8
283,8
32,4

78,0
81,6
7,4

Circulation
Advertising
Other

YoY

2,9%
(2,8%)
27,6%

(1,5%)

Excl. WCup
Event -0,3%

Newspapers Spain P&L

(1)

Circ. 266,000 avg. daily copies

Read. 1,234,000 per day

357 mln monthly page views

28,8 mln monthly unique users

Circ. 247,000 avg. daily copies

Read. 2,960,000 per day

(1)

731 mln monthly page views

31.9 mln monthly unique users

(1)

Circ. 41,000 avg. daily copies

Read. 166,000 per day

29 mln monthly page views

3.5 mln monthly unique users
OJD, Infoadex, EGM

Million Euro

4Q11

4Q10

YoY

FY11

FY10

YoY

59,5
62,4
12,9

56,1
69,6
13,5

6,1%
(10,3%)
(4,4%)

229,9
214,4
51,3

254,7
224,7
51,9

(9,7%)
(4,6%)
(1,2%)

134,8

139,2

495,6

531,3

6,2

3,3

(3,2%)
87,9%

12,5

21,0

(6,7%)
(40,5%)

EBITDA ex NR Items

26,9

21,2

26,9%

36,0

44,5

(19,1%)

Non Recurring Items

(2,0)

(1,7)

(8,9)

(3,5)

EBITDA

24,9

19,5

27,1

41,0

Circulation
Advertising
Other
TOTAL REVENUES
O/W Add-ons

21
(1) Digital copies included

27,7%

o/w 18%
Digital ADV

(33,9%)

Excl. WCup
Event
-1,7%

Magazines P&L
8 weekly magazines
19 monthly magazines
New Media
Million Euro

4Q11

YoY

Circulation
Advertising
Other

17,6
35,8
9,6

19,6
36,9
8,8

(10,2%)

TOTAL REVENUES

63,0

EBITDA ex NR Items
Non Recurring Items
EBITDA

22

4Q10

FY11

FY10

YoY

89,4
118,1
30,5

(6,6%)

(3,0%)
9,1%

83,5
116,8
30,8

65,3

(3,5%)

231,1

238,0

(2,9%)

7,3

5,7

28,1%

7,3

4,7

55,3%

(1,8)

0,0

(2,7)

0,0

5,5

5,7

4,6

4,7

(3,5%)

(1,1%)
1,0%

(2,1%)

Books P&L

Million Euro

Fiction & non-Fic. Italy

Education
Flammarion (1)
Partworks (1)
Rizzoli International
Other

4Q11

4Q10

YoY

47,3
15,8
67,9
7,5
11,2
0,0

52,9
18,6
66,2
25,7
9,2
0,0

(10,6%)

149,7

172,6

(13,3%)

EBITDA ex NR Items

22,7

24,3

(6,6%)

Non Recurring Items

(3,8)

(3,2)

EBITDA

18,9

21,1

TOTAL REVENUES

23

YoY LfL (1)

FY10

YoY

YoY LfL(1)

144,4
95,9
215,8
31,7
25,2
0,3

146,8
97,5
219,0
120,0
22,7
0,3

(4,1%)

513,3

606,3

(15,3%)

(2,0%)

6,1%

43,5

48,0

(9,4%)

7,7%

(6,7)

(4,3)

36,8

43,7

(15,8%)

2,2%

(15,1%)
2,6%

3,2%

(70,8%)

(21,9%)

21,7%
ns

(10,4%)

FY11

3,8%

(1,6%)
(1,6%)
(1,5%)

0,2%

(73,6%)

(22,7%)

11,0%
ns

(1) GE Fabbri Ltd was sold on 21 January 2011, while Delagrave was sold on 9 December 2010: in full year 2010, these two companies reported
revenue of EUR 79 million and EUR 3.7 million respectively, and EBITDA of EUR 8,4 million and EUR -0.7 million respectively. In the last quarter
of 2010, revenues were EUR 16,1 million and EUR 0,4 million respectively, and EBITDA EUR 3,2 million and EUR -0.3 million respectively.

Digicast TV Activities P&L

Million Euro

4Q11

YoY

FY11

FY10

YoY

4,3
23,0

(14,0%)

(24,6%)

3,7
20,2

7,4

(23,0%)

23,9

27,3

(12,5%)

2,3

3,1

(25,8%)

9,4

11,6

(19,0%)

(0,5)

(0,1)

(0,8)

(0,4)

1,8

3,0

8,6

11,2

Advertising
Other

1,4
4,3

1,7
5,7

(17,6%)

TOTAL REVENUES

5,7

EBITDA ex NR Items
Non Recurring Items
EBITDA

24

4Q10

(40,0%)

(12,2%)

(23,2%)

Q&A 2011 FY Results

Milan, 16 March 2012

25

Disclaimer
Investor Relations Department
Federica De Medici
+39 02 2584 5508
federica.demedici@rcs.it

Arianna Radice
+39 02 2584 4023
arianna.radice@rcs.it

Forward-looking Statements
Statements contained in this document, particularly the ones regarding any RCS MediaGroup possible or assumed
future performance, are or may be forward looking statements and in this respect they involve some risks and
uncertainties.
RCS MediaGroup actual results and developments may differ materially from the ones expressed or implied by the
following statements depending on a variety of factors.
Any reference to past performance of RCS MediaGroup shall not be taken as an indication of future performance.
This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of
any of the companies mentioned in any jurisdiction and is directed to professionals of the financial community.
Riccardo Stilli, the Manager responsible for drawing up the companys accounting statements, hereby declares,
pursuant to article 154-bis, paragraph 2 of the Testo Unico della Finanza (Legislative Decree n. 58/1998), that
the information contained in this presentation corresponds to those one contained in the groups documents and
books accounting records.
26