1
• Public company, listed in Euronext Lisboa
• Market leader in newsprint in Portugal
– 5 daily newspapers & 9 magazines
• Strong financial performance
– Turnover over 140 M€ in 2010
– EBITDA CAGR of 15% (2003-2010)
– 24% advertising mkt share in newsprint (Portugal)
– 29% circulation mkt share (Portugal)
– Over 4.9 million readers (Portugal)
• Market leader on the online segment in Portugal
– Over 150 million pageviews & over 26 million visits
– Annual turnover around 5 M€
• International businesses: free daily newspapers in LatAm
– “Destak” in São Paulo, Rio de Janeiro & Brasília
– Other locations under evaluation
Cofina: corporate overview
2
Major milestones
• Incorporated in 1995
• Core business in media since 2005
• Media milestones
– 1995: incorporated with a share capital of 5 M€
– 1999: Acquisition of Investec (media holding)
– 2000: Acquisition of daily newspaper “Correio da Manhã”
– 2002: Acquisition of weekly TV magazine “TV Guia”
– 2004: Launching of weekly newsmagazine “Sábado”
– 2006: Acquisition of free daily newspaper “Destak”
– 2007: Launching of “Destak” in LatAm (São Paulo, Brazil)
– 2009: Acquisition of the Portuguese edition of the free daily
newspaper “Metro”
3
Cofina: newspapers
“Correio da Manhã”
Generalist newspaper mkt leader
Over 122K newspapers sold/day
Over 1 million readers/day
“Record”
Leading sports newspaper
Over 70 K newspapers sold/day
Over 840 K readers/day
“Jornal de Negócios”
#2 business newspaper
Around 10 K newspapers sold/day
Over 150 K readers/day
“Destak”, “Metro” & “Destak Brasil”
Free daily newspapers
Destak: 454 K readers/day
Metro: 473 K readers/day
Destak Brasil: 700 K readers/day
5
Turnover (M€)
EBITDA (M€)
EBITDA margin
Main financial indicators
100.1
2003
134.6
2004
129.7
2005
131.3
2006
CAGR 4%
2007
134.6
2007
20.5
2008
144.0
8.5
2003
13.8
2004
16.2
2005
17.8
2006
CAGR 15%
2008
20.3
8%
2003
10%
2004
12%
2005
14%
2006
15%
2007
14%
2008
2009
134.1
2009
21.4
16%
2009
2010
2010
134.6
23.1
2010
17%
6
-3.0%
+5%
+2%
-1%
+1%
+10%
+1.4 pp
101.5
48.3
41.0
12.2
78.9
22.6
22.3%
2010 Chg % 10/09
Newspapers: evolution
• Market share around 40%
• Main indicators
• Strong focus on operating efficiency and cost control
• “Correio da Manhã” & “Record” both are market leaders on their segments
Total turnover
Circulation
Advertising
Add on
Operating costs
EBITDA
EBITDA margin
91.4
40.8
37.9
12.7
75.6
15.7
17.2%
2005
91.6
41.1
40.1
10.5
74.5
17.1
18.6%
2006
94.8
42.7
44.0
8.1
76.5
18.4
19.4%
2007
102.9
44.3
44.8
13.7
84.7
18.2
17.6%
2008
98.5
46.1
40.1
12.3
78.0
20.5
20.8%
2009
7
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
100.000
110.000
120.000
130.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Correio da Manhã vs peers (generalist daily newspapers) source: APCT
Paid circulation: evolution per year
Leadership since 2003
Main asset: “Correio da Manhã”
2000 Correio da Manhã acquired by Cofina
Daily p
aid
cir
cula
tion
“Correio da Manhã”
“Jornal de Notícias”
“Diário de Notícias”
“Público”
“24 Horas” (closed in 2010)
8
Main asset: “Correio da Manhã”
• Acquired by Cofina in 2000
• Daily paid circulation increased front 89 K newspapers/day to current 122 K newspapers/day
• CAGR of 3,3% vs market CARG of -1,5%
• The sole Portuguese newspaper with a sustainable growth trend
• National newspaper with strongest presence on the Southern part of Portugal
• Popular newspaper (not populist) with high quality editorial
9
• “Record”
– Mkt leader
– Mature market highly dependent on
global sports events
– Fast growth online
• “Destak” & “Metro”
– Free daily newspapers
– Cofina with a 59% stake
– Destak present in São Paulo, Rio de
Janeiro & Brasilia (LatAm platform)
• “Jornal de Negócios”
– Reference newspaper on the
business segment
– Strong online presence
www.negocios.pt
Other newspapers
10
Magazines: evolution
• Stale portfolio
• Economical pro-cyclical market niche
• Main indicators
• “Sábado” weekly newsmagazine is the major asset
38.4
15.5
14.8
8.1
37.9
0.5
1.3%
2005
39.7
16.1
15.0
8.6
39.0
0.7
1.7%
2006 Chg % 10/09
39.8
16.2
17.9
5.8
37.6
2.2
5.5%
2007
Total turnover
Circulation
Advertising
Add on
Operating costs
EBITDA
EBITDA margin
-2.0%
-6%
+11%
-20%
-1%
-43%
-1.1 pp
41.1
17.5
15.4
8.3
39.0
2.2
5.3%
2008
35.5
17.7
12.6
5.2
34.7
0.9
2.5%
2009
34.8
16.7
13.9
4.2
34.3
0.5
1.4%
2010
11
Growth strategy
Organic Non organic
• Increase profitability
– Strong editorial quality
– Increase circulation and gain market share
– Active portfolio management
– Strong focus on cost control
• newspapers: reinforce leadership
– Increase circulation
– Increase profitability
• Magazines: monetize past investments
– Increase turnover(circulation & advertising)
– Reduce cost base
12
Growth strategy
Organic Non organic
• Domestic market
– Evaluate other media options
• International market
– Export successful business models
– LatAm through free daily newspapers (“Destak”)
– Evaluate other media options in growing markets
13
Final remarks
• Balanced portfolio
– Newspapers market leaders: “Correio da Manhã” & “Record”
– Growing titles: “Sábado”, “TV Guia”, “Flash”
– Largest Portuguese media group on the internet segment
• Management with strong track record
– Focus on return on investments
– Successful turnarounds
– Successful integration of acquired titles
• Well equipped to outperform
– Low and flexible cost base
– Leadership in main media segments in Portugal
– Successful international operations in LatAm
Cofina: a growth option