Gruppo Sole 24 Ore 2012

Gruppo Sole 24 Ore 2012

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  1. 1. FY 2012 Results 15 March 2013Investor Relations
  2. 2.DisclaimerThis presentation contains statements that constitute forward-looking statements based on Il Sole 24 ORES.p.A.’s current expectations and projections about future events and does not constitute an offer or solicitationfor the sale, purchase or acquisition of securities of any of the companies mentioned and is directed toprofessionals of the financial community.These statements appear in a number of places in this presentation and include statements regarding the intent,belief or current expectations of the customer base, estimates regarding future growth in the different businesslines and the global business, market share, financial results and other aspects of the activities and situationsrelating to the Company.Such forward looking statements are not guarantees of future performance and involve risks and uncertainties,and actual results may differ materially from those expressed in or implied by these forward looking statementsas a results of various factors, many of which are beyond the ability of Il Sole 24 ORE S.p.A. to control or estimateprecisely. Consequently it is recommended that they be viewed as indicative only.Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as ofthe date of this presentation.Il Sole 24 ORE S.p.A. undertakes no obligation to release publicity the results of any revisions to these forwardlooking statements which may be made to reflect events and circumstances after the date of this presentation,including, without limitations, changes in Il Sole 24 ORE S.p.A. business or acquisition strategy or to reflect theoccurrence of unanticipated events.STATEMENTThe Manager mandated to draft corporate accounting documents of Il Sole 24 ORE S.p.A. Massimo Luca Arioli,attests – as per art.154-bis comma 2 of the Testo Unico della Finanza (dlgs.58/1998) – that all the accountinginformation contained in this presentation correspond to the documented results, books and accounting of theCompany. Investor Relations 2
  3. 3.AgendaHighlightsKey Financial DataFinancial data by divisionsAppendix Investor Relations 3
  4. 4.Highlights 1/2• Consolidated revenue 430.9 million euro, down 7.9%, due mainly to the drop in advertising revenue (-16%) and in revenue from the Software Area (-7.8%), affected by the adverse market trend.• Result attributable to the owners of the Parent -45.8 million euro, down 37.4 million euro versus 2011, net of non-recurring transactions of 28.1 million euro (liquidation of Alinari, write-down of Business Media, restructuring of sales networks and channels, streamlining of property management, revision of the production process, staff reorganization charges). In 2012, measures were taken to cut costs further with an impact on 2013 in excess of 30 million euro, for the most part already achieved with the signing of the 20% solidarity agreements involving employees and workers, increasing the solidarity percentage for Radiocor journalists from 8% to 20%.• Positive Net Financial Position of 5.3 million euro.• Print/digital copy sales up 7.1% versus 2011. The 2012 result improved further in January 2013, making Il Sole 24 ore the leading digital newspaper with 46,190 daily copies and third player in the ADS print/digital ranking (280,187 copies). In 2012, paid digital subscriptions more than doubled to exceed 40 thousand copies in December, while circulation of the print newspaper came to 260 thousand copies. Digital revenue (135.4 million euro) accounted for 31.4 of total revenue and places the Group on an equal footing with the leading international players in the publishing industry. The result is the product of the business alliance between the Publishing and Tax &Legal Areas, which gravitates around the enhancement of the information resources of Il Sole 24 Ore, and the achievements made by the Software Area. Specifically, Tax & Legal digital revenue rose by 13.8% and for the first time ever beat the Area’s print revenue, contributing 52% of revenue (45% in 2011). In 2012, the website grew by 37% in average daily unique browsers and by 56% in average daily page views. The mobile version of the website grew by 59% in average daily unique browsers and by 63% in average daily page views (Nielsen Site Census). Investor Relations 4
  5. 5.Highlights 2/2• In 2012, the Group began unifying systems and processes (publishing, content management system, client databases and sales cycle) with the aim of implementing in the short-term a strategy to create a single newsroom to add further value to the quality of the information resources of the Sole 24 Ore brand across all the media and platforms utilized by end users. Toward this end, the free area of the website has been complemented by a fee-based section added to the new and exclusive Business Class offering, which includes the print newspaper, digital replicas, Buongiorno dal tuo amico Sole, il Giornale di domani, the professional databanks and the services tailored to different customer segments. The Il website already counts 2,131 active fee-based subscriptions.• In 2012, Tax & Legal’s Ebitda came to 27.6%, slightly improving versus 2011, thanks to the strong focus on digital resources and to the cost curbing measures taken.• System advertising sales fell by 15.4% versus the market’s 14.3% (Nielsen), as a result of the recessionary trend of the economy and, specifically, of the lingering crisis in financial advertising, where the Group is the traditional market leader. Internet advertising sales bucked the market trend and, net of funds, increased by 10.9% versus the market’s +7.3% display type (FCP- Assointernet) and of Radio 24 (-7.3% versus -10.2%).• Radio 24 remains one of the top 10 national radio stations. Its market share in seconds moved up from 8.3% in 2011 to 8.6% in 2012 (Eurisko Radio Monitor). Investor Relations 5
  6. 6.AgendaHighlightsKey Financial DataFinancial data by divisionsAppendix Investor Relations 6
  7. 7.2012 Results: PreambleIn the last three years, Gruppo 24 ORE has brought on a process of restructuring and digital developmentwhich has been confirmed and even boosted by the Action Plan approved by the Board of Directors inOctober 2012.The main actions and development paths are: Systems and processes rationalization: Unification of the Publishing System, Content Management System, Clients Database and Management of account receivables, as the main requirement for supporting the new Group organization aimed to achieve a stronger focus of the business based on specific revenue models Focus on core business: • Investments aimed to support the digital transition, which have allowed the Group to be nowadays the leader in Italy in terms of digital revenues on Group total revenues (8% including only digital revenues from Newspaper, System and Digital; 31% including also Tax & Legal and

    Software) • BU Software corporate and industrial rationalisation aimed to strengthen the business in terms of both organization and market visibility • New actions for the valorisation or closure of non core assets Cost cutting actions: • Implementation of cost cutting programs for around 80Mn€ (-14% on total) in the three years 2010-2012 still preserving the editorial core asset • Launch of additional cost cutting actions for over 30Mn€ in 2013 as approved by the Board of Directors Investor Relations 7

  8. 8.2012 Results: Main impacting factors2012 Results have been affected by negative market conditions and the resources needed to startthe new restructuring phase for Gruppo 24 ORE.In particular, the 62Mn€ EBIT reduction versus 2011 has been the result of: Negative EBIT results for specific business areas for approximately 34Mn€: • Advertising: -29.5Mn€; strong reduction from the newspaper, partially offset by better then market performance on Internet and Radio • Software: -€4.2m; mainly due due to Inpdap and INPS contracts expiration and critical conditions of the construction market (STR branded products) One-off restructuring costs of 28Mn€: • Organization/Personnel rationalization: 8.8Mn€ • Sales channels restructuring: 5.1Mn€ • Assets restructuring and others: 14.2Mn€ Investor Relations 8
  9. 9.Key Financial Data Investor Relations 9
  10. 10.Revenues & EBITDA Breakdown Investor Relations 10
  11. 11.2012 Results: Focus on Net Financial Position €m – rounded figures Trade receivables 33.6 Inventories -4.8 Trade payables 11.7 Others assets -0.1 and liabilities ∆ WC 40.4 42.1 (41.0) 0.1 (11.5) -36.8 40.4 5.3 (16.9) (7.7) REORGANIZATION FINANCIAL INCOME ∆ Provision NFP 2011 OFCF CAPEX ∆ WC NFP 2012 CASH OUT AND TAXES for risks and others Trade receivables -9.6 Inventories -2.5 11.8 (13.5) Trade payables -5.2 Others assets -6.1 and liabilities (17.4) ∆ WC -23.4 84.1 -42.0 (23.4) 2.2 (1.9) 42.1 REORGANIZATION FINANCIAL INCOME ∆ ProvisionNFP 2010 OFCF CAPEX ∆ WC NFP 2011 CASH OUT AND TAXES for risks and others Investor Relations 11
  12. 12.AgendaHighlightsKey Financial DataFinancial data by divisions • Newspaper Publishing • System (Advertising) • Digital • Professional Publishing • Tax & Legal • Software Solutions • Training & Events • Radio • CultureAppendix Investor Relations 12
  13. 13.Newspaper Publishing• Newspaper circulation at 260.149 average copies (- 2.7% vs. FY11)• Digital subscriptions +119%: over 40.000 digital subscribers as at December 2012Highlights Newspaper readers transition to digital on track (>430k downloaded apps and 40k digital subscribers) FY12 revenues affected by declining in advertising (-22.4% yoy) and circulation revenues (-5.5%) Negative trend in revenues for add-ons (-15.3%) and monthly magazines (-37.9%) affected also by the closing of “Ventiquattro” Newspaper offer reshaped with the launch of a series of new add-ons (“L’Estate rovente con il mio amico Sole”) and instant books (“L’anno che ha cambiato la vita degli italiani” and a specific issue on welfare reform) aimed at helping the public to better understand and cope with the economic turmoil Upgrade for Plus24 (investments focused weekly publication) and Domenica (cultural weekly publication) enriched with new specific columns and content Continued success in the organization of big professional events (Telefisco – with >100k attendees, Tuttopensioni, Forum lavoro, i.e.) Investor Relations 13
  14. 14.System (Advertising)Advertising yoy by Area vs Market* G. 24 ORE Market • Radio: -7.3% . - 10.2% • Online: +10.9%(**) . VS. +5.3% • Newspaper - 19.5% - 17.6% (*) Source Nielsen Media Research FY2012 for market data (**) Internet revenues net of funds Highlights Decrease in revenues (-15.4%) affected by the fall of print advertising collection (approximately 70% of total advertising agency revenues), the persistent crisis of the financial and automotive sectors (which comprehend many of System’ clients) and the reduction in mandatory and IPOs print communication Positive trend in revenues from internet advertising collection: +10.9% vs. display advertising market +7.3% Advertising collection on Radio 24, although declining, still outperforms the reference market: -7.3% vs. -10.2% Investor Relations 14
  15. 15.Digital• Increase in paid contents on tablets and PCs and advertising collection positively affected revenues: +3.1% yoy• Overall applications download > 750K (newspaper app > 430k), > 40k digital subscribers• Rising trend for all users KPIs and social network presence (~160k Facebook fans and more than 500k Twitter followers)Highlights Average daily unique browser +37.0% and average daily page views +56.0% vs. FY11 on the site .com (sourceNielsen Site Census), with a new record of 150Mn monthly page views in the month of October Web site mobile version +59.0% average daily unique browsers and +63.0% average daily page views (sourceNielsen Site Census) E-commerce platform revenues +3.9% (intermediation fee) in 2012 Launch of specialized web area ( collecting Group’s digital offer related toguides and instant books and new applications (Viaggi di Gusto, I Misteri dell’Arte, iNorme24, Cook_inc) Last quarter activities has been focused on sale and enhancement of digital contents directed to the launch ofnew web site metered version in January 2013 Launch of Fabbrica24, incubator of advertising and e-commerce initiatives: Sugarbox (subscribecommerce/advertising, April 2012, 100% owned), Inner Design (Interior Design community with e-commerce,June 2012, 70% owned), Lambdago (software house, owner of Twistargram, September 2012, 70% owned) Investor Relations 15
  16. 16.Professional Publishing: Breakdown Investor Relations 16
  17. 17.Professional Publishing: Tax & Legal• Decrease in revenues (-2.9% vs. FY11) due to the ongoing decline in sales of paper products (-23,5% books, -17,3% magazines vs. FY11)• Steady profitability despite market transition• Strong increase for online products and services revenues: +41% vs. FY11Highlights Increase in business area digital revenues +13.8% (electronic publishing and IT services). Digital Revenues on total business unit revenues’ shift from 45% in FY11 to 52% in FY12 Strong focus on shift from paper to digital products still ongoing: • digitization, both magazines online and single shot and subscription books • launch of Professioni24, Ipad application which collects Riviste24’s magazines and database • sale of digital magazines on Apple store and e-commerce channel and development of new sales channels as 24ore on demand • launch of Ipad application for all Area databases and a specific one which provides a correlation between contents of Norme e Tributi (newspaper) and those of Tax & Legal • commercial network strengthening and specialization Investor Relations 17
  18. 18.Professional Publishing: Software Solutions• Economic turmoil has strongly affected Italian SMEs and their expenditure levels• Construction market still slowing down negatively affects STR business• In 2012, Gruppo 24 ORE integrated all software properties under a single company: 24 ORE Software.• Ongoing development of new products (SGP.Net, Vision, E.Net)• Improved applications with integrated professional online contentHighlights IL SOLE 24 ORE SOFTWARE: ESA SOFTWARE: • Tax & Labour products revenues in line with • Revenues: -3.5% mainly due to SME FY11 (-0.7%) crisis and launch of a one shot • Increase in revenues for Legal and Softlab product (Com 3000) in 2011 that products : +63.4% could not be replicated in 2012 STR: DATA UFFICIO: • Revenues: -18.0% - Delay in commercial • Revenues: -33.2% due to Inpdap and negotiations due to the further slow down in the INPS contracts expiration construction market • Good results in fiscal assistance services (+12% tax declarations 18 Investor Relations assisted vs. FY11)
  19. 19.Professional Publishing: Training & Events• Business school: 113 Part Time Masters and 2.200 managers engaged in 2012• Annual & Events: >15k participants in 2012Highlights Decrease in revenues (-1.8% vs. FY11) mostly due to Full Time Master performance (-5% vs. FY11). Good performance for Part Time Masters (+8.3% vs. FY11, 2200 participants), SME professional education (+18.3% yoy, 5800 participants) and Annual Education & Event (+7.2% yoy) Decrease in revenues for Newton (-0.6% yoy) due to Newton Lab revenues decline of 6.7% yoy due to lower revenues from certain events . Good performance for Newton Management Innovation products (+4.9% in revenues yoy). Investor Relations 19
  20. 20.Radio • Better than market performance for advertising revenues (-7.4% yoy vs. -10.2% yoy for the market) • Podcast downloads growth at +58% vs. FY11 reaching more than 10 millions downloads • Good web performanceHighlights Radio 24 remains one of the Top Ten most popular radio stations. It’s market share in second grows from 8.3% in 2011 to 8.6% in 2012 (source Eurisko Radio Monitor research) Increase in marketing revenues (+26.3%) supported by ongoing projects with the European Community started in 2011 and the development of new initiatives and events Very good performance for the radio web site: increase both in average page views (>5Mn/mth, +7.0% yoy) and average unique users (281k users/mth, +16.0% yoy) (source Nielsen Site Census) Investor Relations 20
  21. 21.Culture• Art Exhibitions launched: • Pixar (Mantova) • Joan Mirò (Roma, Genova) • Marina Abramovic (Milano) • Gustav Klimt (Venezia) • Picasso (Milano)• The Picasso exhibition at Palazzo Reale in Milan ended in January 2013 established a new record in visitors (>550k) for an art exhibition in ItalyHighlights Increase in revenues (+39.2%) mainly due to the launch of successful exhibitions Multi-channel projects and synergies with newspaper still going on Launch of Minimum Design application, based on the series of books “Maestri del design” Since August 2012, Alinari S.p.A. is in liquidation Investor Relations 21
  22. 22.AgendaHighlightsKey Financial DataFinancial data by divisionsAppendix Investor Relations 22
  23. 23.Key Financial Data Investor Relations 23
  24. 24.Consolidated Balance Sheet Investor Relations 24
  25. 25.Consolidated Cash Flow Investor Relations 25
  26. 26.Consolidated Net Financial Position Investor Relations 26

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