Agora SA Investor presentation Investor presentation Financial and market performance 1Q 2011
Small growth of advertising market Quarterly ad spend performance Quarterly performance of ad market segments 48% 10% yoy % change yoy % change +7. +7 .5% 5% Internet +6. .5% 5% +6 40% Television¹ +4 +4. .5% 5% 32% +2.5 + 2.5% % Magazines 24% 0% 16% Radio 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 8% Outdoor 0% 0 % 0% Dailies -8% Cinema -10% -8 - 8. .5% 5% -16% -10 - 10. .5% 5% -24% -32% -14 - 14. .5% 5% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 - -17 17. .5% 5% -20% Advertising market structure in 1Q 2011 Internet yoy % and pp changes Cinema 15% 1% � 2pp Outdoor 0pp Dailies 7% 8.5% � 0.5pp � 1pp Magazines 11% � 0.5pp PLN 1.7 billion � 2.5% Radio 7.5% � 0.5pp Television 50% � 0.5pp Source: ad spend estimates by: Agora (press based on Kantar Media and Agora’s monitoring, radio based on Kantar Media), Starlink (TV, cinema, Internet – comprise revenues from e- mail marketing, display, search engine marketing and affiliate marketing), IGRZ (outdoor); -2- ¹ Data, for 1Q09 -1Q11, according to new methodology of TV ad market measurement (by media house Starlink), comprise standard TV advertising and sponsoring revenues. The estimates for previous reporting periods have not been adjusted adequately therefore they are not fully comparable.
Change of advertising market estimates Quarterly performance of ad market segments in 1Q2011 (vs Change of advertising market estimates for 2011 1Q2010) 24% yoy % change 24% yoy % change 21% 18% 18% 13-15% 13-15% 11-13% 11.5% 12% 12% 6-8% 6-8% 6-7% 5-6% 3-5% 3-5% 3-5% 3-5% 6% 6% 2-4% 2.5% 0-2% 2% 0% 0% Total ad television internet magazines dailies outdoor radio cinema Total ad television Internet magazines dailies radio outdoor cinema market market (-1%)-(-3%) (-3%)-(-5%) -4% -6% -6% -5% -7.5% (-7%)-(-9%) -9.5% -12% -12% estimates February 11 estimates May 11 Source: 1Q 2011: ad spend estimates by: Agora (press based on Kantar Media and Agora’s monitoring, radio based on Kantar Media), Starlink (TV, cinema, Internet – comprise revenues from e-mail marketing, display, search engine marketing and affiliate marketing), IGRZ (outdoor); 2011 – Agora’s own estimates. -3-
F inancial performance of the Group PLN million 1Q 2011 1Q 2010 yoy change Growth of revenues caused by 295.8 248.1 Revenues, incl.: 19.2% consolidation in the Group’s results the revenues of Helios group. (0.9%) - advertising 157.8 159.3 The decrease results mainly from lower (4.1%) advertising revenues of the Newspapers’ - copy sales 51.1 53.3 segment. - - tickets sales 41.4 - The decrease caused mainly by lower copy sales revenues in the Newspapers and 28.2% - other 45.5 35.5 Magazines segments. 285.6 231.4 Operating cost, incl.: 23.4% The growth results mainly from the inclusion of revenues from food and beverages sales in Helios cinema network. 36.9% 61.9 45.2 - raw materials, energy and consumables - staff cost ¹ 12.7% The growth results mainly from the 77.3 68.6 consolidation of the operating cost of the Helios group. - non-cash expense relating to share-based 45.2% 4.5 3.1 payments The growth results mainly from the 0.8% 26.1 25.9 inclusion of the cost of purchase of - marketing & promotion products to be sold in the bars located in Helios cinema network, cost of materials 11.1% 22.0 19.8 - D&A and energy of Helios group, as well as higher cost of production materials and higher cost of launching book collections in EBIT 10.2 16.7 (38.9%) 1q 2011 by Special Projects. EBIT margin (3.3 pp) 3.4% 6.7% Growth resulting from the increased number Operating EBITDA¹ 36.7 39.5 (7.1%) of employees due to the purchase of Helios group and execution of development Operating EBITDA margin¹ (3.5 pp) 12.4% 15.9% projects in the Group. 6.1 21.7 Net profit (71.9%) Source: consolidated financial statements according to IFRS, 1Q11; ¹ excluding non-cash cost of share-based payments; -4-
Segment performance: Newspapers ( Gazeta , Metro , Special Projects, Printing Division) Financial performance¹ PLN million 1Q 2011 1Q 2010 yoy change The decline in revenues caused 144.4 156.3 (7.6%) Revenues, incl.: mainly by limited expenditure in the following advertising categories: automotive, telecommunication, - advertising in Gazeta (15.4%) 61.9 73.2 announcements and recruitment. - copy sales of Gazeta (11.0%) 33.2 37.3 The decrease caused by smaller number and impact of dual pricing offer and global trend of copy sales decline. Operating cost, incl.: 122.2 117.2 4.3% The growth caused mainly by launching higher number of series of - raw materials, energy, consumables 6.3% books by Special Projects. 50.4 47.4 and printing services - staff cost excl. non-cash cost of The influence, i.a., of development 4.4% 33.1 31.7 projects executed in the segment. share-based payments 3.0% - marketing & promotion 17.0 16.5 The growth caused by higher promotion cost of Special Projects. EBIT ² 22.2 39.1 (43.2%) EBIT margin² (9.6 pp) 15.4% 25.0% Operating EBITDA³ 30.3 47.2 (35.8%) Operating EBITDA margin³ (9.2 pp) 21.0% 30.2% Source: financials: consolidated financial statements according to IFRS, 1Q11; ad spend in dailies: Agora, display advertising, 1Q11; ¹ incl. Gazeta, Metro, Special Projects, Printing Division; -5- ² excluding allocations of general overhead cost of Agora S.A.; ³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.
Position of Gazeta in dailies segment Copy sales of dailies¹ Weekly readership reach in 1Q 2011¹ 600 thou. copies No. of readers Fakt 14.3% 4.3 million Gazeta Wyborcza 13.9% 450 4.2 million 403 K Super Express 7.0% 2.1 million 312 K 300 Metro 5.9% 1.8 million 176 K Rzeczpospolita 4.2% 1.3 million 150 135 K 100 K Dziennik Gazeta Prawna 2.7% 0.8 million % reach 0 0% 4% 8% 12% 16% Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sept09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sept10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Fakt Gazeta Super Express Rzeczpospolita Dziennik Dziennik Gazeta Prawna² (till Sept. 11, 09 Gazeta Prawna) Dailies ad spend structure ¹ Metro yoy % and pp change 4% � 0.5pp Rzeczpospolita Gazeta 9% 38% 0pp � 2pp Super Express 1Q 2011 3.5% � 0.5pp PLN 0.14 billion Mecom (local) 7.5% � 9.5% � 0.5pp Dziennik Gazeta Prawna Fakt 4% 9% � 0.5pp � 1pp Polskapresse Other 15.5% 9.5% � 1pp 0pp Source: copy sales: ZKDP, total paid circulation, Jan09 – Mar11, comparison; financials: consolidated financial statements IFRS, 1Q11; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Jan-Mar 11, N=12 196, CCS indicator (weekly readership), elaboration Agora S.A.; ad spend in dailies Agora, estimates, display advertising; -6- ¹ comparison of major dailies only; ² the title appeared on the market on September 14, 2009 from the merger of Gazeta Prawna and Dziennik. Previous copy sales data based on copy sales of Gazeta Prawna. The copy sales of Dziennik Gazeta Prawna in the period Sep 14-30 amounted to 126 thou. copies.
Metro and Special Projects Metro Metro Special Projects Special Projects Financial performance Financial performance PLN million 8 18 PLN million yoy % change � 13.5% � 15.1% yoy % change 15 6 12 4 9 6 2 0.7 million 1.9 million -0.3 million 3 0 -1.2 million 0 1Q 2010 1Q 2011 1Q 2010 1Q 2011 -2 -3 Revenue operating EBITDA¹ Revenue EBIT² Metro ad market share in 1Q 2011 Statistics 1Q 2011 1Q 2010 national 3% 8 6 Series 4% local 3% 5 9 One-offs (Total) (excl. Warsaw) 13 15 Total: Warsaw 13% 0.6 0.7 Copies sold (million) ³ 0% 5% 10% % share 15% Source: financials: consolidated financial statements according to IFRS, 1Q11; ad expenditure in dailies: Agora’s estimates, display advertising; ¹ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.; -7- ² excluding allocations of general overhead cost of Agora S.A.; ³ books and books with CDs and DVDs.
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