Financial Results 24 1
Year 24 under review: Agenda General environment 24 Financial Results 24: Overview Tamedia s key issues 24 Outlook and plans 25 Remarks to Financial Results 24: Summary 24 Operating revenues EBITDA Net income Segment information Depreciation & Amortization Impairment Cash flow statement Balance Sheet 2
Martin Kall Chief Executive Officer 3
General environment and Tamedia 24: Overview 2) Source: Mediafocus gross ad expenditures without media sector; from 24 AIS without media. Not comparable to previous year because supplements and classiffieds are included. 4 1999* 2 21 22 23 24 GDP growth (real) 1.6% 3.2%.9%.2%.% 1.7% 1) Unemployment rate (year end) 3.% 2.7% 2.6% 3.2% 4.1% 4.% Advertising expenditures in CHF mill. 3 134 3 37 3 233 3 155 3 15 3 537 2) (MediaFocus) 2) Tamedia in CHF mill.* Operation revenues 77 818 756 64 574 567 EBITDA 172 21 146 72 28 13 EBIT 136 164 79 18-41 63 Net income from continuing operations 13 14 43 2-19 5 * Tamedia figures: before 2 not on IAS basis 1) Estimate
Swiss economy recovers General environment 24 Growth of Swiss economy mainly export driven (estimated GDP 24: 1.7% compared to.% in 23) Ad expenditures slightly higher than in 23 Consumer Confidence Index gently higher (-1 indexpoints in January 25 compared to 28 indexpoints in January 24) Job classifieds still negatively influenced by high unemployment rate (December 24 4.% compared to 4.1% in 23) Ongoing consolidation in the Zurich media market 5
Bottom reached after years of recession Gross Advertising in 24 in CHF mill. 1) WEMF Advertising Statistics Switzerland 1999 2 21 22 WEMF AIS 23 24 3/4 Newspapers 2 118 2 25 2 15 1 861 1 651 1 64 -.7% Magazines 337 379 346 37 566 567.3% Professional journals 38 44 39 378 14 14 4.8% Print 2 835 3 32 2 886 2 547 2 23 2 221 -.4% Television excl. Sponsoring 439 475 442 482 74 737 4.7% Radio excl. Sponsoring 15 12 19 16 96 98 2.9% Movie theaters 42 45 4 38 42 51 2.3% Teletext/Online from 23 13 14 14 14 45 47 4.4% Outdoor advertising 52 592 63 571 391 384-1.9% Total 3 998 4 342 4 166 3 826 3 57 3 537.9% (1) Source: 1998-22 WEMF Advertising Statistics (new typology from 22), incl. media. On a net basis. 23-24 WEMF Advertising Index Switzerland (AIS), without media. Not comparable to previous year. Gross expenditures (TV, Movie theaters). 6
Nevertheless, for the media industry 24 was an annus horribilis with regard to ads Publicitas-Index: Development of ad spendings in daily papers 14 135 13 125 12 115 11 15 1 95 9 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 P-INDEX Source: Publigroupe 7
... and in the job market there is potential too Job ads: Publicitas / Tamedia / Manpower 35 3 25 2 15 1 5 1995 1996 1997 1998 1999 2 21 22 23 24 8 Jan 95 Apr 95 Jul 95 Okt 95 Jan 96 Apr 96 Jul 96 Okt 96 Jan 97 Apr 97 Jul 97 Okt 97 Jan 98 Apr 98 Jul 98 Okt 98 Jan 99 Apr 99 Jul 99 Okt 99 Jan Apr Jul Okt Jan 1 Apr 1 Jul 1 Okt 1 Jan 2 Apr 2 Jul 2 Okt 2 Jan 3 Apr 3 Jul 3 Okt 3 Jan 4 Apr 4 Jul 4 Okt 4 Publ. Stellenindex Tamedia Stellenindex Manpower Stellenindex
Tamedia achieves reversal of trend with regard to EBIT Financial Results 23 and 24: Overview 55 45 35 25 15 5 574 567 28 13 63-41 -18 5-5 Operating revenues EBITDA EBIT Net income 23 24 9
Key issues in Newspapers division Key figures 24: Revenues: CHF mill. 343.9 (+.2%) EBITDA: CHF mill. 55.1 (+ 327.7%); margin: 15.9% (prior year 3.7%) EBIT: CHF mill. 47.3 (py: CHF mill. 3.6); margin: 13.6% (py 1.%) General issues: Daily papers still lose commercial ads Job ads reached bottom; job management ads increase Ongoing consolidation in the Zurich market Tamedia specific issues: Operating revenues stable in the most important division; EBITDA more than tripled Soft face-lift of «Tages-Anzeiger» in March 24 and decision for expansion in the Zurich area Formation of advertising package Metropool with BaZ, BZ und Tages-Anzeiger Cooperation with the same titles for «Das Magazin» 2 Minuten expands to Lucerne Combination of Print and Online in Tamedia Job Market; relaunch of internetplatform jobwinner.ch Edipresse and Tamedia take part in homegate.ch Launch of car4you-newspaper in cooperation with car4you 1
Job ads development slightly positive Annual number of ad pages in ALPHA and Stellen-Anzeiger in comparision to Manpower Index Switzerland 12 1 8 6 4 2 963 199 1991 671 597 5364 394 4294 449 4578 2918 1992 1993 1994 1995 1996 8672 1295 85 441 1997 1998 1999 2 21 22 23 Source: Manpower and Tamedia Job Market, 24 11 2651 285 24 14 12 1 8 6 4 2 Total pages ALPHA and Stellenanzeiger per year Manpower Index Switzerland in March
2 Minuten number one in readers market Top daily newspapers Readership in thousand 8 782 736 2 Top Swiss daily newspapers 1) 24 by gross advertising revenue In CHF mill. 197 18 6 573 16 14 4 2 427 381 316 29 249 239 221 12 1 8 6 4 11 82 78 67 67 57 57 53 33 2 Tamedia and Associates Other titles 2Minuten Blick Tages-Anzeiger Berner Zeitung 1) Mittelland Zeitung 2) Neue Zürcher Zeitung Neue Luzerner Zeitung Südostschweiz St. Galler Tagblatt Basler Zeitung Tages-Anzeiger Neue Zürcher Zeitung Berner Zeitung 2) 2 Minuten Blick Neue Luzerner Zeitung St. Galler Tagblatt Mittelland Zeitung 3) Basler Zeitung Südostschweiz 1) BZ from 24 incl. Bund; 2) AZ was integrated in MLZ in 22 2) Source: MACH Basic 24 12 Source: AIS 24 excl. media Notes: 1) incl. supplements and classifieds 2) BZ from 24 incl. Bund 3) incl. split editions
7 6 5 4 3 311 526 Success story 2 Minuten Revenues and readership from 2 to 24 782 72 9 8 7 6 5 4 2 1 Revenues in CHF mill. 1.3 23.1 28.4 41.8 62.5 2 21 22 23 24 Readership 3 2 1 Revenues in CHF mill. Readership in thousand 13
SonntagsZeitung in advertising market far ahead of competitors Weekly & Sunday newspapers 24 Readership in thousand Top Swiss weekly & Sunday newspapers 1) 24 by gross advertising revenue in CHF mill. 1' 977 75 73 8 79 6 56 6 45 4 417 296 3 34 2 139 135 15 17 15 12 SonntagsBlick SonntagsZeitung NZZ am Sonntag Cash Handelszeitung Finanz und Wirtschaft SonntagsZeitung SonntagsBlick NZZ am Sonntag Finanz und Wirtschaft Cash Handelszeitung Tamedia Others SOURCE: MACH Basic 24 14 SOURCE: AIS 24 excl. media Note: 1) incl. supplements and classifieds
Key issues in Magazines division Key figures 24: Revenues: CHF mill. 9.3 (-7.7%) EBITDA: CHF mill. 8.7 (py CHF mill. 9.3); margin: 9.6% (py 9.4% ) EBIT: CHF mill. 8.5 (py CHF mill. 9.6); margin: 9.4% (py 9.8%) General issues: Still strong competition in the weekly market Tamedia specific issues: Turnaround on EBITDA level one year earlier than expected; on EBIT level even two years earlier; Improvement of CHF mill. 18 in EBIT Decrease of revenues mainly due to divestiture of smaller products Relaunch of newsmagazine «Facts» Soft face-lift of «Schweizer Familie» Slight editorial and layout modifications of «annabelle» Sale of childrens magazine «Spick» as of 1.1.25 15
Magazines: Turnaround earlier than expected Revenues, EBITDA and EBIT of magazines from 22 to 24 12 1 19.7 98.3 9.5 8 6 4 2-4.5-9.3 8.7-9.8-9.6 8.5-2 Revenues EBITDA EBIT 22 23 24 16
Top Swiss Magazines 24 by readership in thousand 1188 1'2 19 141 1' 8 6 77 628 512 478 471 4 2 Tamedia Others Source: MACH Basic 24 439 417 349 17 Tamedia with strong position in the magazines market Top Swiss Magazines 24 by gross advertising revenue in CHF mill. 5 46 4 3 25 2 17 15 14 13 12 1 8 7 6 Source: AIS 24 excl. media TVtäglich Beobachter Schweizer Illustrierte Schweizer Familie NZZ Folio Magazin Glückspost Facts Weltwoche Bilanz annabelle Schweizer Illustrierte annabelle Beobachter Weltwoche Facts Bilanz Schweizer Familie Magazin NZZ Folio Bolero
Tamedia and Jean Frey with similar turnaround 115 95 *Jean Frey 23; Results in an 18 months period 1 93 98 Tamedia s magazines in the black earlier than expected 9 75 55 35 15-5 -25 11 11 11 11 9 1-1 -1 Jean Frey 23* Jean Frey 24 Tamedia 23 Tamedia 24 Revenues EBIT Margin in % 18
Key issues in Electronic media division Key figures 24: Revenues: CHF mill. 63.9 (+25.1%) EBITDA: CHF mill. 2.1 (py CHF mill. 7.5); margin: 3.2% (py 14.6%) EBIT: CHF mill. 5.6 (py CHF mill. 34.2); margin 8.4% (py 66.1%) General issues: RTVG still in parliamentary hearing TV ads strongly asked for due to popular sports events Tamedia specific issues: For the first time in the black on EBITDA level TeleZüri again with a substantial gain in revenues and viewers Radio 24 and Radio Basilisk defend their leading position Change of management responsable for programme and sales according to plan at Radio Basilisk; business on track for the first time Restatement 23 due to barter deals that had not been accounted for in the previous year 19
E-Media: In the black for the first time Revenues, EBITDA and EBIT in E-Media from 22 to 24 7 6 5 4 44.5 51.1 63.9 3 2 1-12.3-7.5 2.1-23.3-34.2-5.6-1 -2 Revenues EBITDA EBIT -3-4 22 23 24 2
Radio 24: by far the market leader 3 Daily audiance in the German speaking part of Switzerland, 24 in thousand Source: Radiocontrol, 24, Radio Munot not part of data set of Radiocontrol 261 2 1 27 192 189 173 166 14 138 126 121 99 89 84 82 81 78 58 15 Gross advertising revenues in CHF mill., 24 15 1 Tamedia & Others 8 Associates 7 7 7 5 5 5 4 4 3 3 3 3 2 2 1 Radio 24 Argovia Basilisk Z/NRJ Pilatus Zürisee Top Basel 1 32 Sunshine Extra Bern BE 1 Aktuell Grischa Central Munot Radio 24 Z/NRJ Top Argovia Zürisee Pilatus Central 32 Sunshine Basilisk BE 1 Basel 1 BeO Aktuell Extra Bern Eviva Munot Source: AIS 24 excl. media 21
TeleZüri: most successful private TV station Daily viewers (age 3+) 24 in thousand 55 5 45 4 35 519 Gross advertising revenues in 24 in CHF mill. 25 21 2 15 1 3 25 2 15 1 282 17 133 116 5 4 3 2 2 TeleZüri Tele M1 Tele Bern Tele Tell Tele Basel QUELLE: AIS 24 ohne Medien 99 97 5 33 TeleZüri Tele Bärn Tele M1 Tele Tell Tele Basel Tele Ostschweiz Tele Top Tele Südostschweiz Tamedia and Associates Other TV-Stations Source: Telecontrol 24, 24h average in German speaking Switzerland, (age 3+) 22
Key issues in Services division Key figures 24: Revenues: CHF mill. 195, incl. Internal revenues (-14%) EBITDA: CHF mill. 37.1 (+17.5%); margin: 19% (py 13.9%) EBIT: CHF mill. 12.8 (py CHF mill..5); margin: 6.6% (py.2%) General issues: Pressure on margins in printing industry still high New collecitve labour agreement in printing industry Tamedia specific issues: Significantly lower investments in Rota5 and placing into operation of the most modern printing machines Prining plant Bubenberg wins additional contracts (2 Minuten Lucerne and Zurich, Migros Magazin, Landbote) Zuvo broadens its market position with partner companies ARO crisis solved with Ziegler as general contractor for Tamedia s magazines Magazine converting facility taken back and later sold to Ferag subsidiary pmc. Discontinuation of revenues of BD Bücherdienst Sale of lettershop Regor as of 1.1.25 Implementation of a profitcenter structure 23
Headcount significantly lower 2 Year end headcount of Tamedia from 22 to 24 in full time employees 18 16 14 12 1 27 1825 1518 22 23 24 Number of employees at year end 24
9 8 7 6 5 4 3 2 1 Revenues/payroll costs 818 31.1 255 262 756 Lower personnel expenses responsible for entire increase in results Revenues, personnel costs and personnel costs in % of revenues from 2 to 25 34.6 4.7 26 269 46.8 64 574 567 2 21 22 23 24 35.9 23 5 45 4 35 3 25 2 15 1 5 In percent Revenues in CHF mill. Payroll costs in CHF mill. Payroll costs in % of revenues 25
Further Topics Restructuring measures implemented decisively -> significantly lower payroll costs IT-Outsourcing with Swisscom IT Services Changes in management responsibilities as of October 1, 24 Appointment of Uli Rubner as Head of Magazines division as of January 1 25 26
Remarkable EBIT in 24 EBIT Tamedia in CHF mill. since 1995 15 136 164 1 119 5 36 52 79 63 14 18-5 1995 1996 1997 1998 1999 2 21 22 23 24-41 Source: Annual reports (in CHF mill.) 27
In 24, Tamedia reached the fourth best EBIT within 15 years EBIT margin of Tamedia* since 199 2% 15% 1% 5% % -5% -1% 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 * Until 1995 the result of the products on EBIT level were deducted from Tamedia s EBITDA 28
Without job ads Tamedia reached best EBIT and best earnings structure since 15 years EBIT margin of Tamedia without job ads* since 199 1% 5% % -5% -1% -15% -2% 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 * Until 1995 the result of the products on EBIT level were deducted from Tamedia s EBITDA. Between 199-1994 EBIT was calculated along an average revenue per page and with a 8 percent margin. 29
Outlook and Plans 25 Economic data Growth of Swiss economy flattens Unemployment rate remains high Consumer confidence still cautious Media industry No positive signs in ad expenditures No increase in job classifieds expected; rebound in management job ads continues Tamedia Integration of 2 Minuten with positive effect on revenues and net income Cooperation with Ziegler Druck- und Verlags AG with positive operating effects Continuation of the regionalisation strategy of «Tages-Anzeiger» Implementation of engagement with homegate.ch Examination of expansion of 2 Minuten to St. Gall 3