Gk Rbk · RUS:RBCM
Gk Rbk — RBC — Investor Presentation (September 2008)
27 slides from Gk Rbk's investor presentation, September 2008
Slide 1: Presentation for investors
Presentation for investors September 2008 December 2008 1
Slide 2: Introduction to RBC
Introduction to RBC Diversified media company 15 years of successful operations on the Russian media market Over 5,500 advertisers More than 2,000 employees Ranked 22nd among 40 Russian most valuable brands Cooperation with CNBC, CNN, The Economist and Handelsblatt 2
Slide 3: RBC – Key Branches
RBC – Key Branches RBC RBC TV Internet Print Media The only Russian Total 17 titles Advertising Services business TV channel Information subscription Focused on business and Available to more than 29 online resources design & construction 72 mln people across Market research publicatio
Slide 4: RBC – Key Brands
RBC – Key Brands Business Internet Consumer Internet Internet services TV Print Success factors: Strong family brand Cross-selling between products Economies of scale in content costs Cross-promotion 4
Slide 5: Russia remains one of the driving forces of global ad spending
Russia remains one of the driving forces of global ad spending Top contributors to advertising growth worldwide # Country 2007 # Country 2010F 1 USA $179.3bn 1 USA $190.2bn 2 Japan $41.0bn 2 Japan $43.3bn Between 3 Germany $25.7bn 3 UK $28.7bn Between2007 2007and and2010, 2010, Russia will rise in t
Slide 6: World ad market is slowing down, but strong growth is still expected from Russia
World ad market is slowing down, but strong growth is still expected from Russia Media market growth by region: CAGR 2007-2010, % Advertising Spending Per Capita in 2008F, US$ Source: ZenithOptimedia, Oct 200882006 Source: ZenithOptimedia, Dec 2007 2006 Expected growth of the Russian ad market, RUB
Slide 7: Sustainable growth of Internet segment
Sustainable growth of Internet segment Online advertising growth drivers Ongoing development of Internet infrastructure Continuing growth of online audience (at the expense of print, TV, radio) Share of global Internet advertising to grow from Increasing amount of time spent online 8.6% in 200
Slide 8: RBC: Operating in High Growth Media Segments
RBC: Operating in High Growth Media Segments Fastest growth is expected in Internet and TV – the core segments for RBC Internet advertising to reach volume of radio segment by 2010 Russian ad market = $9.5bn in 2007 Russian ad market =$16.3bn in 2010F Source: ZenithOptimedia, October 2008 *Inter
Slide 9: Russian Internet: Online Population Growth
Russian Internet: Online Population Growth Major Growth Drivers Broadband Penetration, households Online ad market is at a nascent stage in Russia 2007 2012F Strong preference for Russian language content in CIS Telecommunication upgrades Russia 11% 52% Significant investments and M&A activit
Slide 10: Internet Business
Internet Business 10
Slide 11: Internet Expansion: Organic Growth and Acquisitions
Internet Expansion: Organic Growth and Acquisitions RBC’s total Internet audience reached 38mln unique visitors per month in 1H2008 and keeps growing dynamically Source: Company data Ad Revenue Share of Major Internet Players in USA and Russia in 2007 Source: Interactive Advertising Bureau (IAB),
Slide 12: Paid Services
Paid Services Paid Services Clients & revenue Web hosting & domains >140,000 clients registration and annual maintenance fees Online games >250,000 registered users, payments for expanded capabilities News subscription ~ 6,000 subscribers, monthly payments Digital content music streaming - $1/month
Slide 13: RBC.RU: Leading Russian Language Business News Portal
RBC.RU: Leading Russian Language Business News Portal RBC remains by far the most popular financial & business news portal in Russia (about 10- 15 times difference with competitors in terms of unique visitors) Recent market swings and the South Ossetian conflict sent the rbc.ru audience from an
Slide 14: Smotri.com: No.1 video sharing service in Russia
Smotri.com: No.1 video sharing service in Russia Multi-language video sharing service Launched in Jan-2007 No.1 video sharing site in Russia 9about 9mln unique users / month The first Russian project with in- video advertising RBC starts serving contextual ads in videos on Smotri.com in Oc
Slide 15: Qip: One of Two Most Popular Internet Messengers in Russia
Qip: One of Two Most Popular Internet Messengers in Russia Quiet Internet Pager (QIP)* Has strong potential to become the biggest product among RBC’s consumer-driven Internet resources Monthly number of users is 10 mln, of them 10% use the mobile version of QIP Further growth drivers: 9 Active
Slide 16: Online Games
Online Games Global online games market forecasted to reach $14.4bn by 2012 RBC entered online games sector in Dec-2007 Games portfolio consists of 13 games Users: paid users are ~ 5% of total gamers Personnel: 11 people Prospective revenue streams: license fees from distribution of RBC’
Slide 17: Examples of RBC’s Leading Positions in Russian Internet
Examples of RBC’s Leading Positions in Russian Internet Position Internet resource # 1 instant messenger # 1 business news portal #1 video sharing website #1 online dating / social networking community #3 photo sharing website #1 social content website #2 general online newspaper # 1 website with hi
Slide 18: RBC has over 5,500 advertisers
RBC has over 5,500 advertisers The largest single client accounts for not more than 3% of revenues 70% of revenue comes from direct sales, 30% - from ad agencies Delivering packaged advertising offers to its clients base Diversified client base: 18
Slide 19: RBC TV
RBC TV 19
Slide 20: RBC TV Coverage
RBC TV Coverage RBC TV is the only Russian-language business TV channel in the country Coverage in Russia - over 57 mln people in 620 cities About 15 mln people can watch RBC TV in former Soviet Union Penetration in Moscow rose to 72% of households, up from 50% in Jan 2008 Contracts with 429
Slide 21: Strong audience growth of RBC TV
Strong audience growth of RBC TV RBC TV is the only Russian-language business TV channel in the country Daily Audience CAGR (2005-2008) = 38% Audience Highlights Significant audience growth in large Russian RBC TV’s Audience Growth, mln viewers cities, such as Moscow, Novosibirsk, Yekaterinburg, T
Slide 22: Print Media
AR | Oz Print Media
Slide 23: Print Media: Additional Revenue Opportunities
Print Media: Additional Revenue Opportunities Business Design, architecture & luxury Advantages of Print Media segment: Print media to remain 2nd largest ad segment at least until 2012 Cross-selling and cross-promotion between RBC’s media products Print versions boost ad sales on Internet vers
Slide 24: Strong Ratings of RBC’s Titles Support Revenue Growth
Strong Ratings of RBC’s Titles Support Revenue Growth • RBC Daily newspaper is the most popular Audience of Business Newspapers in Moscow financial newspaper in Moscow Average Issue Readership Vedomosti •RBC magazine reconfirms the status of the in Moscow most popular business magazine in Russia • D
Slide 25: Financial Highlights
Financial Highlights 25
Slide 26: RBC’s Financial and Operating Performance in 1H2008
RBC’s Financial and Operating Performance in 1H2008 Total revenue up 42%, which corresponds to the upper end of the full year revenue guidance Internet business delivers dynamic 56% revenue growth New Internet resources show 5.9-fold revenue growth y-o-y RBC’s total Internet audience soars 9
Slide 27: Thank you!
CAUTIONARY NOTE REGARDING FORWARD- LOOKING STATEMENTS Some of the information in this presentation may contain statements of future expectations and other forward-looking statements. These expectations are Thank you! based on the management's current views and assumptions, and involve known and unkn