Agora Sa · GPW:AGO
Agora Sa — Investor Presentation (March 2014)
25 slides from Agora Sa's investor presentation, March 2014
Slide 1: Agora Group: mid-term growth directions
Agora Group: mid-term growth directions -1-
Slide 2: Agenda
Agenda Key challenges 3-7 Growth directions of the Agora Group 8 TASK 1: Transformation of print media 9-11 TASK 2: Building a position in the TV market 12-13 TASK 3: Improving contribution of main businesses – INTERNET 14-15 – CINEMA & FILM 16-17 – RADIO & MUSIC 18-19 – OUTDOOR 20-21 PRINTING SERVI
Slide 3: Key challenges: deteriorating revenue and profitability
Key challenges DETERIORATING REVENUE AND PROFITABILITY REVENUE (PLN million) EBIT (PLN million) 1500 300 1250 250 1000 200 750 150 500 100 250 50 0 0 -250 -50 2008 2009 2010 2011 2012 2013 COST (PLN million) 1500 PURCHASE OF HELIOS 1250 CINEMA NETWORK 1000 750 500 250 0 2008 2009 2010 2011 2012 2013
Slide 4: Key challenges: evolution of the Group's EBIT structure
Key challenges EVOLUTION OF THE GROUP’S EBIT STRUCTURE EBIT (PLN million) 200 160 120 80 40 0 -40 2008 2009 2010 2011 2012 2013 dailies magazines internet outdoor radio cinema Group Source: consolidated financial statements according to IFRS, 2008-2013 -4-
Slide 5: Key challenges: advertising market structural changes and recession
Key challenges ADVERTISING MARKET: STRUCTURAL CHANGES AND RECESSION 15% 11.6% 10% 4.7% 5% 1.5% 0% In the past 5 years ad spend in -5% (3.8%) (5.0%) -10% Poland shrank by PLN 1 billion -15% (10.3%) -20% 2008 2009 2010 2011 2012 2013 9 000 internet 8 000 magazines 7 000 Stable share of TV (50%) dailie
Slide 6: Key challenges: changes in the structure of the Group's revenues
Key challenges CHANGES IN THE STRUCTURE OF THE GROUP’S REVENUES 15% 10.6% 10% 5% 0.4% 0.6% Revenues decreased 0% -5% by PLN 204 million -10% (5.7%) -15% (7.8%) in the past 5 years (13.1%) 2008 2009 2010 2011 2012 2013 1 400 cine m a 1 200 ra dio Deap erosion of print media revenues 1 000 outdoor – d
Slide 7: Key challenges: changes in the structure of the Group's revenues
Key challenges CHANGES IN THE STRUCTURE OF THE GROUP’S REVENUES % share 100% 90% 27.9% 33.9% 35.9% 80% 42.8% 44.1% 49.3% 70% 60% 50% 40% 72.1% 66.1% 64.1% 30% 57.2% 55.9% 50.7% 20% 10% 0% 2008 2009 2010 2011 2012 2013 % share Adve rtis ing re ve nue s Non-a dve rtis ing re ve nue s 100% 6.3% 7.9% 9.
Slide 8: Growth directions of the Agora Group
Growth directions of the Agora Group MID-TERM PRIORITIES OF THE AGORA GROUP REVENUE GROWTH PROFITABILITY IMPROVEMENT STRATEGIC TASKS FOR THE COMING YEARS 1. Digital transformation of print media 2. Building a position in the TV market 3. Improve contribution from core businesses 4. Cost optimization
Slide 9: Task 1: Transformation of print media
TASK 1: Transformation of print media No. 1 quality newspaper in Poland Pioneer of digital transformation Owner of online bookstore Publio Respected publishing house SUCCESSES CHALLENGES REVENUE (PLN million) COPY SALES (thou. copies) 600 600 Copy price increases 500 500 slow down the drop 400 400 A
Slide 10: Task 1: Transformation of print media
TASK 1: Transformation of print media PRIORITIES Quality journalism slowing down the pace of building a significant base print revenue decline of paying digital subscribers PLN 17.9 PACKAGE: WYBORCZA monthly START PROMOTIONAL 04.02.2014 PACKAGE: WYBORCZA PLUS PLN 29.90 monthly PRICE PLN 0.99 per fir
Slide 11: Task 1: Transformation of print media
TASK 1: Transformation of print media NEW REVENUE STREAMS REVENUE STREAMS BUSINESS MODEL 2008 2016 PRINT COPY SALES DIGITAL SUBSCRIPTIONS DIGITAL ADVERTISING PRINT PRINT ADVERTISING COPY SALES PRINT ADVERTISING paid subscriptions: 40 thou. thru 2014 OBJECTIVES 75 thou. thru 2016 CAPEX negligible; pr
Slide 12: Task 2: Building a position in the TV market
TASK 2: Building a position in the TV market Agora’s entry into TV business Specialised movie channel START Resolution Joint project with Kino Polska TV S.A. (41% share) 15.03.2014 granting concession 09.09.2013 An opportunity to combine the potential of TV and the new technologies Adding the TV seg
Slide 13: Task 2: Building a position in the TV market
TASK 2: Building a position in the TV market STRONG START Technical reach 90% MUX - 1 START 15.03.2014 CABLE NETWORKS SATELLITE PLATFORMS audience share: 1% thru 2014 OBJECTIVES 2% thru 2016 profitability: 2015 CAPEX PLN 10 million thru 2016 ASPIRATIONS broadening TV presence -13-
Slide 14: Task 3: Improving contribution of main businesses - Internet
TASK 3: Improving contribution of main businesses - INTERNET Among 3 TOP portals in Poland 12.4 million real users Innovative mobile apps REVENUE 2013 REVENUE 2001 GROWTH PLN 3.8 MILLION PLN 111.4 MILLION E-COMMERCE PAID CONTENT VIDEO & MOBILE ADVERTISING B2B PERFORMANCE MARKETING VORTALS VORTALS DI
Slide 15: Task 3: Internet priorities and objectives
TASK 3: Improving contribution of main businesses - INTERNET Maintaining reach and increasing engagement of users PRIORITIES DEVELOPMENT OF MOBILE APPS DEVELOPEMENT OF ATTRACTIVE CONTENT AND VIDEO CONTENT Strengthening advertising offer DEVELOPMENT OF ADVERTISING OFFER MOBILE ADVERTISING VIDEO ADVER
Slide 16: Task 3: Cinema & Film
TASK 3: Improving contribution of main businesses - CINEMA & FILM One of the largest cinema operators in Poland Film co-producer and distributor „Traffic department” the most popular Polish movie in 2013 PRIORITIES Growth of Helios network Growth of cinema distribution operations Openings in 2014: P
Slide 17: Task 3: Cinema & Film
TASK 3: Improving contribution of main businesses - CINEMA & FILM CAPEX PLN 80 million thru 2018 ASPIRATIONS Multiscreen cinemas Agora as the lead producer in 2015 in all voividship cities 31.12.2013 Achievements to date: 28 CITIES / 31 CINEMAS CO-PRODUCER OF 5 MOVIES SWIADECTWO POSTE RESTANTE 11 VO
Slide 18: Task 3: Radio & Music
TASK 3: Improving contribution of main businesses - RADIO & MUSIC Network of local radio stations with stable position Organizer of music events Publisher and distributor of CDs PRIORITIES Revenue growth Effective use of licenses Participation in bids for new licenses and music formats 7 NEW LICENSE
Slide 19: Task 3: Radio & Music
TASK 3: Improving contribution of main businesses - RADIO & MUSIC CAPEX PLN 17 million by 2018 ASPIRATIONS Search for ways to monetize audio content in the digital sphere 1 000 000 900 000 TUBA FM 800 000 700 000 600 000 TubaFM recipients 500 000 400 000 in all channels of distribution 300 000 200 0
Slide 20: Task 3: Outdoor
TASK 3: Improving contribution of main businesses - OUTDOOR The largest outdoor advertising company in Poland Leader in the premium segment (citylights & backlights) Bus shelter – new experience in the public space Strengthening the position in premium segment - citylights PRIORITIES CITYLIGHTS AMS
Slide 21: Task 3: Outdoor
TASK 3: Improving contribution of main businesses - OUTDOOR PRIORITIES Implementation of the Warsaw contract (duration – 9 years) construction of 1580 bus shelters in 2014-2016 2014 - 180 bus shelters 2015 - 720 bus shelters 2016 - 680 bus shelters CAPEX – PLN 80 million OBJECTIVE EBIT MARGIN: 2.5%
Slide 22: Printing services - effective utilization of production capacity
PRINTING SERVICES - effective utilization of production capacity The share of revenues from printing services in total sales of the Group 3 printing plants 20% Offset and heatset printing technology 16% 12% Dailies, periodicals, catalogues 8% 4% and promotional materials 0% 2008 2009 2010 2011 2012
Slide 23: Task 4: Cost optimization of shared support functions
TASK 4: Cost optimization of shared support functions PRIORITIES Cost management is an integral part of management processes in Agora Cost savings from restructuring processes 1116 1200 976 1000 898 911 859 COST SAVINGS: PLN 316 MILLION 800 800 INCLUDING GROUP LAY-OFFS 600 400 Group lay -offs in 200
Slide 24: Summary: Development within the frame of mission
Summary: Development within the frame of mission MID-TERM PRIORITIES OF THE AGORA GROUP Growth of digital revenues TRANSFORMATION OF PRINT MEDIA INTERNET Building the position in TV segment Growth of scale and contribution of leading media CINEMA OUTDOOR RADIO Optimization of shared services and inf
Slide 25: Thank you
THANK YOU www.agora.pl Contact: [email protected] [email protected] -25-