Q1 2009 Results - gruppo24ore.ilsole24ore.com · Strong online advertising performance offset by the decrease of real-time financial information Market data source: Nielsen Media

Q1 2009 Results

Milan, 7 May 2009

2Investor Relations

DisclaimerThis Presentation has been prepared by Il Sole 24 Ore S.p.A. (“Il Sole 24 Ore” or the “Company”). As used herein, “Presentation” means this document, any oral presentation, the question and answer session and any written or oral material discussed or distributed during this meeting. The Presentation comprises written material/slides which provide information on the Company and its subsidiaries. The information contained in this Presentation has not been independently verified by any independent third party. Save where otherwise indicated, the Company is the source of the content of this Presentation. Care has been taken to ensure that the facts stated in this Presentation are accurate, and that the opinions expressed are fair and reasonable. 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STATEMENT

As required by Article 154-bis, Section 2, of the Uniform Finance Law (Legislative Decree No 58/1998), Giuseppe Crea, in his capacity as “Dirigentepreposto alla redazione dei documenti contabili societari” of Il Sole 24 Ore S.p.A., attests that the accounting information contained in this presentation is consistent with the data in the Company’s documents, accounting records and other records.

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Section 1Il Sole 24 ORE – Q1 2009 Overview

4Investor Relations

Consolidated Revenues (€m)

Q1 2009 Revenues by segment – rounded figures

(*): digital revenues do not include advertising collected on @ websites: both Group's websites and 3rd parties' websites

Q1 2009 Revenues by nature

86.1 82.2

64.650.8

Q1 2008 Q1 2009

Circulation & others Advertising

150.7

133.0

Consolidated revenues % change: -11.7%

Consolidated revenues % change (net of effects relating to the change in the scope of consolidation totalling €7.9m): -17.0% mainly due to a decrease in advertising and add-on sales

Advertising revenues % change: -21.3% mainly linked to Q1 2009 Italian advertising market collapse

Print revenues32.6%

Other revenues6.6%

Advertising revenues38.2%

Digital revenues (*)22.6%

53.6

133.0

(34.9)

9.22.944.2

58.0

NewspaperPublishing

ProfessionalPublishing

System Radio Multimedia Corporate andintercompany

Total

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Consolidated EBITDA, EBIT and Net Result After Minorities (€m)

EBITDA EBIT Net Result After Minorities

3.0

16.2

Q1 2008 Q1 2009

-4.6

7.5

Q1 2008

Q1 2009

-4.2

5.3

Q1 2008

Q1 2009

Q1 2009 EBITDA is negatively affected

• by revenue decrease and by labour cost increase mainly due to the change in the scope of consolidation (€3.7m) and extraordinary expenses (€1.1m)

and positively affected

• by the change in the scope of consolidation totalling €1.2m

Q1 2009 EBIT is negatively affected

• by EBITDA decrease and higher D&A regarding the newly-acquired companies (€1.5m)

and positively affected

• by lower D&A for the revision of the useful life of radio broadcasting frequencies and of printing machines (€2.4m)

Q1 2009 Net Result is negatively affected

• by EBIT decrease

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Section 2Professional Publishing

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Strong increase in software solutions and education (both organic and linked to Δ in the scope of consolidation) offset advertising decrease

(€m - rounded figures) Q1 2008 % Q1 2009 % % change

Circulation/other revenues 43.6 83.2% 50.7 87.4% 16.2%

Revenues from advertising 8.8 16.8% 7.3 12.6% -17.3%

Total Revenues 52.4 100.0% 58.0 100.0% 10.6%

EBITDA 7.5 7.5 -0.5%

EBITDA Margin % 14.3% 12.9%

Q1 2009 Revenue Split

43.0%

19.7%

31.9%

5.4%

Tax, Legal & Public Administration Business MediaSoftware Solutions Education & Training

Acquired Companies

Consolidated since

Revenues (€m)

EBITDA (€m)

Esa Software November 2008Newton Management

Innovation August 2008

Q1 2009 changes in the scope of consolidation(rounded figures)

7.9 1.2

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Section 3Newspaper Publishing

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IT Circulation Trend - rounded figures

341

2,239

333

2,075

Newspaper Market (*) IL Sole 24 ORE

(thou

sand

cop

ies)

Feb 07- Jan 08 Feb 08- Jan 09

Segment performance affected by the decrease of advertising and add-ons

-2.5%

-7.3%

Market data source: ADS Feb 2007-Jan 2008, Feb 2008-Jan 2009(*) Newspaper Market includes Corriere della Sera, Repubblica, Italia Oggi, Il Giornale, Il Messaggero, Libero and La Stampa


88.4%

5.8%5.8%

Newspaper Add-ons Magazines and Free Press


Circulation/other revenues 33.1 44.9% 23.7 44.2% -28.5%

Revenues from advertising 40.7 55.1% 29.9 55.8% -26.5%

Total Revenues 73.8 100.0% 53.6 100.0% -27.4%

o/w Add-ons 11.7 3.1 -73.5%

EBITDA 11.9 1.8 -84.5%

EBITDA Margin % 16.1% 3.4%

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Section 4System (Advertising)


13.4%

3.9%

IT online ADV Market YoY% Change WebSystem ADV YoY% Change

-27.4%

-19.5% -20.6%

Online and radio advertising strongly outperformed the market while press was in line

SYSTEM YoY changePRESS YoY change(*) IT Total Market YoY change

Market data source: Nielsen Media Research February 2009(*) PRESS includes Newspapers and Magazines advertisingGruppo 24 ORE figures refers to Q1 2009

IT ADVERTISING PERFORMANCE WEBSYSTEM ADVERTISING PERFORMANCE

Market data source: Nielsen Media Research February 2009Gruppo 24 ORE figures refer to Q1 2009


Revenues from Group's products 53.9 96.8% 41.9 94.8% -22.2%

Revenues from 3rd parties' products 1.8 3.2% 2.3 5.2% 28.5%

Total Revenues 55.7 100.0% 44.2 100.0% -20.6%

EBITDA (0.3) (1.4) n.m.

EBITDA Margin % -0.5% -3.1%


Section 5Multimedia


S24 online ADV PERFORMACE vs MARKET

3.9%

9.3%

IT online ADV Market YoY%Change

S24 online ADV YoY% Change

Strong online advertising performance offset by the decrease of real-time financial information



51.4%

30.7%

17.9%

Real-time financial information Online Radiocor


Circulation/other revenues 8.2 86.2% 7.7 84.4% -5.6%

Revenues from advertising 1.3 13.8% 1.4 15.6% 9.3%

Total Revenues 9.5 100.0% 9.2 100.0% -3.6%

EBITDA (0.1) (0.2) n.m.



Section 6Radio


-27.2%

5.1%

Radio24 ADV YoY% Change

Radio advertising collection strongly outperformed the market


Revenues from advertising 2.7 97.1% 2.8 96.0% 5.1%

Circulation/other revenues 0.1 2.9% 0.1 4.0% 46.3%

Total Revenues 2.7 100.0% 2.9 100.0% 6.3%

EBITDA (0.7) (0.7) 2.6%



IT Radio ADV YoY% Change

Radio24 ADV PERFORMANCE vs MARKET

Radio24 FY 2008 strong growth in average daily listeners (+13.7%)

led to an extremely positive Q1 2009 advertising performance


Section 7Appendix


Consolidated Income Statement (€m - rounded figures) Q1 2008 Q1 2009 % change

Revenues 150.7 133.0 -11.7%

Other operating income 2.2 2.2 -1.6%Personnel expense (43.3) (49.4) 14.2%Direct & operating costs (92.0) (81.4) -11.5%Provisions (1.4) (1.3) -6.0%

EBITDA 16.2 3.0 -81.3%

EBITDA Margin % 10.7% 2.3%Depreciation & amortisation and impairment (8.7) (7.7) -11.8%

Capital gains (losses) on disposal of non-current assets 0.0 0.0 n.m.

EBIT 7.5 (4.6) -161.7%

EBIT Margin % 5.0% -3.5%Financial income (expenses) 2.7 1.0 -60.5%Income (expenses) from investments 0.0 0.0 n.m.

Profit/(loss) before tax 10.1 (3.6) -135.3%

PBT Margin % 6.7% -2.7%Income taxes (4.8) (0.9) -82.3%

Net Profit/(loss) 5.3 (4.4) -183.3%

Minorities 0.0 0.2 n.m.

Net Profit/(loss) after minorities 5.3 (4.2) -179.0%

Margin % 3.5% -3.2%


Revenues & EBITDA breakdown (€m - rounded figures) Q1 2008 Q1 2009 % change

Revenues 73.8 53.6 -27.4%

EBITDA 11.9 1.8 -84.5%

EBITDA margin 16.1% 3.4%

Revenues 52.4 58.0 10.6%

EBITDA 7.5 7.5 -0.5%


Revenues 55.7 44.2 -20.6%

EBITDA (0.3) (1.4) n.m.

EBITDA margin -0.5% -3.1%

Revenues 2.7 2.9 6.3%

EBITDA (0.7) (0.7) 2.6%


Revenues 9.5 9.2 -3.6%

EBITDA (0.1) (0.2) n.m.


Revenues (43.4) (34.9) -19.5%

EBITDA (2.2) (4.0) -82.0%

Revenues 150.7 133.0 -11.7%

EBITDA 16.2 3.0 -81.3%


Multimedia

Corporate and intercompany

Il Sole 24 ORE Group

NewspaperPublishing

ProfessionalPublishing

Advertising(System)

Radio


Consolidated Balance Sheet

(€m - rounded figures) As at 31 Dec 2008 As at 31 Mar 2009

Non-current assets 331.1 328.1Current assets 397.1 401.4

Total assets 728.2 729.5

Equity attributable to shareholders of parent 357.1 353.0

Equity attributable to minority interests 1.4 1.2

Total equity 358.5 354.2

Non-current liabilities 108.2 106.7Current liabilities 261.5 268.6

Total liabilities 369.7 375.3

Total equity & liabilities 728.2 729.5


Consolidated Statement of Cash Flows

(€m - rounded figures) Q1 2008 Q1 2009

Net Profit after minorities 5.3 (4.2)Adjustments 4.4 5.0Changes in net working capital (25.3) (8.1)

Total net cash generated (absorbed) by operating activities (15.6) (7.3)

Total net cash absorbed by investing activities (2.6) (4.5)

Free cash flow (18.2) (11.8)

Net cash generated (absorbed) by financing activities 10.8 1.4

Net increase (decrease) in cash & cash equivalents (7.4) (10.5)


Group’s Net Financial Position

(€m - rounded figures) As at 31 Dec 2008 As at 31 Mar 2009

Cash & cash equivalents 150.1 138.5

Bank overdrafts and loans due within 1 year (4.8) (3.7)

Short-term net financial position 145.3 134.8

Non-current financial liabilities (14.1) (14.2)Non-current financial assets and hedging instruments measured at fair value

17.8 17.5

Medium/long-term net financial position 3.7 3.3

Total net financial position 149.0 138.2

Documents

Q1 2009 Results - gruppo24ore.ilsole24ore.com · Strong online advertising performance offset by the decrease of real-time financial information Market data source: Nielsen Media