OUTPERFORMING, CHANGING, GROWING UPDATE KEVIN BEATTY, CEO 26 - PowerPoint PPT Presentation

OUTPERFORMING, CHANGING, GROWING UPDATE KEVIN BEATTY, CEO 26 MARCH, 2013 1

CHANGING PORTFOLIO DIVESTMENT MERGER ACQUISITION 2012 – 2013 2

A NEW CORPORATE IDENTITY 3

4

INVESTMENTS NEWSPAPERS 51% OWNED 100% OWNED p l us 39% OWNED 50% OWNED 25% OWNED Source: dmg media 5

PERFORMANCE DRIVERS ENCOURAGING REVENUE PERFORMANCE LEVERAGING PORTFOLIO STRENGTH COST REDUCTION INVESTMENT FOCUS 6

ENCOURAGING REVENUE PERFORMANCE Print (Circulation Total Revenue Digital and Advertising) £820m £150m £655m FY12 +3% +34% -1% FY12 FIGURES AND GROWTH RATES RELATIVE TO FY11. ADJUSTED TO EXCLUDE DISPOSALS AND PRINT/WASTE SALES AND TO INCLUDE JOBRAPIDO AND 50.8% OF ZOOPLA/TDPG. DIGITAL INCLUDES DIRECT FROM CONSUMER REVENUE ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 7

EVOLVING REVENUE PROFILE FY11 FY13 FY15 Circulation 44% 42% 38% Print Ads 41% 34% 28% Digital 14% 21% 29% 1% 3% 5% Direct From Consumer EXCLUDES OTHER REVENUES SUCH AS CONTRACT PRINTING AND DISTRIBUTION SERVICES. FIGURES INCLUDE 50.8% OF ZOOPLA PROPERTY GROUP ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 8

CIRCULATION REVENUE ROBUST DAILY MAIL MARKET SHARE CIRCULATION (%) AND REVENUE (£M’s) (MOVING ANNUAL TOTAL) DAILY MAIL MARKET SHARE CIRCULATION (%) 24 280 REVENUE (£M’s) (MOVING ANNUAL TOTAL) 260 240 22 220 200 20 180 160 JUNE 08 JUNE 11 FEB 13 18 140 Price increase Price increase Price increase 45p – 50p 50p – 55p 55p – 60p 120 16 100 90 60 14 JULY 08 JULY 09 JULY 10 JULY 11 JULY 12 JAN 08 JAN 09 JAN 10 JAN 11 JAN 12 JAN 13 ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media / ABC 9

LOYAL READER BASE MONTHLY VOLUME YoY CIRCULATION PERFORMANCE: DAILY MAIL VS. NAT PRESS MARKET 22.2% 22.0% FEB 13 PRICE RISE Price Increase 55 60P FEB 13 55p – 60p 2.4% 1.5% % POINT YoY SHIFT % POINT YoY SHIFT MAIL VS. MARKET MAIL VS. MARKET MAIL SHARE MAIL SHARE JAN 13 FEB 13 ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: ABC 10

ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 11

MOVED FROM ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 12

TO DAYS ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 13

DAYS 800k 300k MEMBERS MEMBERS ACTIVE DAILY ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 14

15

MORE PRINT READERS THAN EVER 3,800,000 3,700,000 3,633,000 3,553,000 3,600,000 READERSHIP 3,500,000 3,377,000 3,374,000 3,400,000 3,300,000 3,214,000 3,200,000 3,100,000 3,000,000 Oct 07 - Sep 08 Oct 08 - Sep 09 Oct 09 - Sep 10 Oct 10 - Sep 11 Oct 11 - Sep 12 ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: NRS 16

METRO DAILY MOBILE AUDIENCE OF OVER 360K+ Source: dmg media 17

37% OF UK POPULATION EVERY WEEK ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: NRS PADD January – December 2012 18

LAUNCH OF INTEGRATED MARKETING SOLUTIONS ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 19

LAUNCH OF INTEGRATED MARKETING SOLUTIONS ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 20

TOTAL REACH MORE THAN 230m 36% + TOUCHPOINTS INCREASE YoY ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: ABC / dmg media January 2013, NRS October – December 2012 21

THE TRUST OF 31 MILLION CUSTOMERS ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 22

RICH CUSTOMER DATA • Name • Full Address • Marital Status • Career • Age • Telephone Number • Income • Date of Birth • Email Address • Home ownership THE MAIL SOCIAL DATA NEWSPAPER METRO READERSHIP In-paper promotions Facebook profile In-paper competition Scotland on Sunday Online competitions Twitter handle with MailOnline Facebook Occasional Sun competitions INTERESTS Signed up to Occasional Daily Mail to win an Film daily newsletter iPhone 5 ONLINE Competitions Metro BEHAVIOURAL Newsletter Fashion WOWCHER DATA Bought £9.99 Showbiz Occasional visitor to e-cigarettes TELETEXT MailOnline and Metro Hearts HOLIDAYS Facebook football Animal lover competition Newsletter to win an iPad subscriber Breaking News Interested in Puzzles Games ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 23

LEVERAGING COMBINED DATA 52 MILLION UNIQUE BROWSERS (UP 21% YoY) REVENUE UP 69% YoY ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 24

COST SAVINGS UNDERLYING COST BASE REDUCED BY £128m* COMPARED TO FY08 £20m+ FIXED COSTS SAVINGS TO BE DELIVERED BY FY14 MORE FLEXIBLE COST BASE IMPROVING MARGIN *EXCLUDING NEWSPRINT ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: dmg media 25

GROWTH DRIVERS AND INVESTMENT FOCUS p l us TABLET / MOBILE PRODUCTS ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 26

ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 27

WOWCHER – THE NO.2 DAILY DEAL SITE IN THE UK 2.2 MILLION SUBSCRIBERS (+141% YoY) £1.1M MONTHLY NET REVENUE RUN RATE (+220% YoY) ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS Source: comScore February 2013, dmg media 28

ENCOURAGING COST LEVERAGING INVESTMENT REVENUE PERFORMANCE REDUCTION PORTFOLIO STRENGTH FOCUS 29

SUMMARY GREAT BRANDS GROWING CUSTOMER BASE HIGH GROWTH OPPORTUNITIES Source: dmg media 30

Q&A PANEL SUSAN LINDA IAN JAMES GUY AUBREY–COUND GRANT HANSON WELSH ZITTER Managing Group Operations Group Finance Managing CEO Director Director Director Director eCommerce Metro UK dmg media dmg media Mail Newspapers dmg media 31