Transcript Document

INDEPENDENT NEWS & MEDIA PLC

2000 Full Year Results 21st March, 2001 All figures in Euros unless otherwise stated

2000 HIGHLIGHTS

• • Strong performances in all markets Underlying circulations / readerships positive • • New € 60m full-colour Irish production facility operational Successful integration of the Belfast Telegraph Group • Chorus launches Ireland’s first Digital service • iTouch exceeds 1st year targets, after successful IPO • € 1 bn 5-year syndicated facility over-subscribed

GROUP PROFILE

Listing Information • Leading international media group with 5 main geographic markets • PLC listed on the Dublin, London and New Zealand Stock Exchanges • Market Capitalisation: € 1.5 bn (IR£1.2 bn) • Shareholder Profile: Board 4% Europe 8% USA 25% UK 12% Sir Anthony O'Reilly 27% Ireland 24% Turnover by Activity Publishing Electronic Outdoor Advertising 82% 9% 9%

2000 FULL YEAR RESULTS

HEADLINE NUMBERS

Turnover Operating Profit * Profit Before Tax Net Profit EPS ** DPS Weighted shares outstanding (m) Operating Margin *

* Continuing activities before exceptionals ** Before exceptional items and amortisation

2000

€ m

1,342.5

224.1

155.3

81.3

16.01

7.50

514.4

16.3%

(as restated)

1999 Change

€ m

% 1,168.4

187.4

137.7

65.4

14.9% 19.6% 12.8% 24.3% 14.49

6.66

505.8

15.6% 10.5% 12.6%

SUMMARY BALANCE SHEET

(as restated)

31 Dec. 2000 31 Dec. 1999

€ m € m

Fixed Assets * Other Net Assets/ (Liabilities) Net Debt Total Shareholders' Funds 2,584 56 (1,500) 1,140 2,092 (16) (868) 1,208 Interest Cover (EBITDA/ Interest) Net Debt to EBITDA 3.7x

5.7x

4.6x

3.9x

* Including the revalued elements of mastheads

SUMMARY CASH FLOWS

OPERATING PROFIT Share of Associates & JVs Depreciation & Amortisation EBITDA Working Capital Movements OPERATING CASH FLOW * Operating Cash Flow Conversion * 2000

€ m

204.8

10.8

47.3

262.9

(19.3) 243.6

93%

(as restated)

1999 Change

€ m %

185.6 10.3% (5.8) 286.2% 41.8 13.2% 221.6 18.6% (22.7) 15.0% 198.9 22.5% 90% 3.2%

* Excluding restructuring payments

GROUP TURNOVER BY MARKET

Turnover by Market -- 2000 Total: € 1,342.5m

United Kingdom 16% South Africa 14% New Zealand 21% Ireland 25% Australia 24%

GROUP PROFITS BY MARKET

Operating Profit by Market -- 2000 Total: € 224.1m

United Kingdom 6% New Zealand 24% South Africa 10% Ireland 29% Australia 31%

10 YEAR PERFORMANCE

Earnings per Share ( € ) (Fully diluted before exceptionals & goodwill amortisation) 16.00

14.50

13.00

11.50

10.00

8.50

7.00

5.50

4.15

4.00

'91

5.36

'92

7.02

'93

7.58

'94

8.88

10.20

'95

12.68

'96 '97

12.28

'98

14.49

'99

16.01

'00 • • • • • 10 Year C.A.G.R.

Turnover Operating Profit * Pre-Tax Profit + 24% + 31% + 36% Earnings Per Share + 16% Dividends Per Share + 16% * Excluding exceptional items

OPERATIONS REVIEW

NEW ZEALAND

COMPANY PROFILE

No. 1 newspaper publisher New Zealand Herald 210,436 (+0.3%) 57% national daily market share Readership up 5.9% on last year • No. 1 regional newspaper publisher 8 paid for dailies/ 34 non-dailies • No. 1 commercial / magazine printerNo. 1 radio operator (66 stations)No. 1 security printer (web/ plastics)Turnover by Activity 1% 18% 62% 19% Publishing Printing Radio New Media

€ millions 2000 1999 Change Turnover EBITDA * Operating Profit * 282.4

72.0

55.4

253.3

66.5

49.9

11.5% 8.3% 11.0% Operating Margin *

* Excluding exceptional items

19.6% 19.7% 2000 PERFORMANCE DRIVERS

Exceptionally strong Q1 - America’s CupIncreased market share & tight cost controlStrong performance from Regional division48% Radio share and 55% audience reachTrans-Tasman expansion of Security Printing

Wilson & Horton

2001 PROSPECTS

Economic indicators positive: forecast economic growth for 2001 +2.5% forecast inflation falling to +1.1% forecast interest rates falling to 5.9% • Herald to benefit from full year cover price increase and lower distribution costsBusiness Herald re-launch attracting new brand advertisersNewsprint prices / supply fixed for 2001Full year impact of Security Printing’s Australian acquisitions and potential to expand

Asian export market

Exports from regional New Zealand remain very buoyant

AUSTRALIA

COMPANY PROFILE

No. 1 regional publisher in Australia Queensland and Northern NSW, comprising 14 paid dailies/ +50 non-dailies • No. 1 outdoor advertising company Supersites, transit, billboards and street furniture with 65% coverage • No. 1 radio operator with 11 metro-

politan stations with 4.5m listeners

JV in Pan TV’s World Movies 177,000 subscribers • Turnover by Activity 21% 1% 42% 36%

€ millions 2000 1999 Change Turnover EBITDA * Operating Profit * 325.1

87.0

71.9

275.7

75.0

63.1

17.9% 16.0% 13.9% Operating Margin * 22.1% 22.9%

* Excluding exceptional items

2000 PERFORMANCE DRIVERS

Good revenue growth in 1

st control in 2 nd half half & strong cost

Exceptional performance from outdoor -

strong occupancies and yields

Full year of Shared Services benefitsBroad base of activities Publishing Outdoor Radio New Media

APN News & Media

2001 PROSPECTS

Economic indicators positive: - Forecast economic growth for 2001 +2.0% - Forecast inflation continuing at subdued levels of 3.0% - Forecast interest rates falling to 5.0% • Forecast advertising industry growth rates for 2001: Publishing + 3% Broadcasting + 4% Outdoor + 5% • Low Australian dollar boosting exports and Regional marketsAsian outdoor expansion to deliver immediate profits

SOUTH AFRICA

COMPANY PROFILE

No. 1 newspaper publisher / printer

The Star

163,746 (+0.6%)

Saturday Star Sunday Independent Cape Argus Weekend Argus Cape Times Daily News Independent on Saturday Sunday Tribune

135,936 (+0.3%) 40,875 (+1.0%) 77,418 (+0.2%) 108,474 (+0.2%) 48,690 (+0.2%) 65,476 (+1.7%) 73,668 (+0.8%) 108,339 (+1.8%) All other titles reported circulation increases • Turnover by Activity 11% 1%

€ millions 2000 1999 Change Turnover EBITDA * Operating Profit * 189.1

28.7

24.3

177.3

26.6

22.2

6.7% 7.9% 9.5% Operating Margin * 12.9% 12.5%

* Excluding exceptional items

2000 PERFORMANCE DRIVERS

Good growth in circulation - ALL titles up Competitors generally down • Increasing readership market share (68%)Increasing advertising market share Display market share up to 41% Classified market share up to 50% • Cost increases held at half the inflation rateConde Nast magazine JV above expectations Publishing 88% Printing New Media

Independent News & Media (SA)

2001 PROSPECTS

Economic indicators positive: Forecast economic growth for 2001 +3.5% - Forecast inflation falling to +7.0% - Forecast interest rates falling marginally to 14 .

0% • Forecast advertising industry growth rates for 2001: Newspapers + 8.5% • Newsprint prices/ supply fixed for 2001On-going focus on extending strong circulation and advertising market positionsContinued positive impact of reduced cost base following successful restructuring in

1999 and tight cost focus in 2000

UNITED KINGDOM

COMPANY PROFILE

No. 4 quality broadsheet newspaper

publisher

The Independent

240,000

Independent on Sunday

270,000 • No. 1 newspaper publisher in Northern

Ireland

No. 2 paid-for regional newspaper

publisher in Greater London area

No. 1 recruitment magazine publisherNo. 1 educational courses publisherTurnover by Activity 18% 1% 10% 14% Nationals Belfast Regionals New Media 57% Magazines

€ millions 2000 1999 Change Turnover EBITDA * Operating Profit * 210.0

16.1

12.4

151.6

(3.3) (5.1) 38.5% Operating Margin * 5.9% -3.4%

* Excluding exceptional items

2000 PERFORMANCE DRIVERS

Nationals Highest circulation level & market share (9.6%) since 1997 Good growth in advertising (up 12%) New premises with significant cost savings • Regionals Margins at top-end of industry Circulation stabilised following market decline • Magazines Advertising growth & market share maintained

BELFAST TELEGRAPH

COMPANY PROFILE

Acquired from Trinity Mirror in August

2000 for STG£292m

Earnings enhancing in 1

st year

No. 1 newspaper publisher

Belfast Telegraph

112,000

Sunday Life

95,000 • No. 1 contract printer 2 Goss Metroliners (double-width) • Turnover by Business Type 15% 1% Publishing Printing 84% New Media

FUTURE PROSPECTS

Unique metropolitan franchiseExcellent track record Proven management / editorial team • Advertising growth despite overall UK

slowdown

Strong recruitment advertising enabling significant yield increases • Successful re-formatting of The Belfast

Telegraph and Sunday Life

Halted decline in circulation Enabled cover price increase • New product developmentGroup editorial resourceEnhanced printing resource

Independent News & Media (UK)

2001 PROSPECTS

Economic indicators positive: - Forecast economic growth for 2001 +2.0% to 2.5% - Forecast inflation falling to +2.4% - Forecast interest rates 5.75% and possibly lower • Forecast newspaper advertising industry growth rates for 2001: - Nationals - Regionals + 3.2% + 1.0% • Full year impact of Belfast Telegraph acquisitionNew centralised London operations and termination of out-sourced services

IRELAND

COMPANY PROFILE

No. 1 newspaper publisher

Irish Independent The Star Evening Herald Sunday World Sunday Independent

168,200 95,171 101,200 314,022 308,600 • No. 1 regional newspaper publisher 11 titles with weekly circulation of 107,499 • No. 1 newspaper / magazine wholesalerTurnover by Business Type 1% 23%

€ millions 2000 1999 Change Turnover EBITDA * Operating Profit * 335.9

74.1

66.4

310.5

66.4

59.4

Operating Margin * 19.8% 19.1%

* Excluding exceptional items

2000 PERFORMANCE DRIVERS

Growing circulation & readership Market share of 51% (including imports) • Strong growth in advertising Revenue up 19% • Successful transition / implementation of

€ 60m Citywest development 8.2% 11.6% 11.8%

Publishing Distribution 76% New Media

Independent News & Media (Ire)

2001 PROSPECTS

Economic indicators positive: Forecast economic growth for 2001 +8.0% - Forecast inflation falling to +4.0% - Forecast interest rates 4.25% • Successful commissioning / operation of

€ 60m Citywest development with full benefits achieved

lower production headcount colour out-sourcing eliminated explosive growth in colour volumes/ yield reduction in newsprint usage • Chorus - digital services roll-out

NEW MEDIA REVIEW

DETAILS …becoming Ireland's first fully integrated digital TV/ Telecoms network operator Ireland's 2nd largest cable/ TV transmission operator

- jointly owned (50:50) by INM and Liberty Media (USA) - 264,000 subscribers (54% Cable/ 46% MDS) - 555,000 homes passed (60% of all homes in Ireland) - exclusive licence franchise areas

Launched Ireland's first Digital TV Service - Nov. 2000 Launched first Digital TV MDS Service - worldwide - Nov. 2000

360m syndicated loan secured August 2000, facilitating:

- broadband, high-speed network build - full multi-media bundled Digital TV, Internet & telephony

NTL network: Roll-Out on hold Co-Owner with INM of Unison ISP

Chorus (Ire)

DIGITAL e-VOLUTION

e-Hype

strip away the Hypedon’t “bet the bankleverage content &

marketing

e-Basic

define strategic arenassystems automationcover downside

- manage classified migration - enforce copyright/ regulatory € Millions Turnover Operating Losses

e-Xecution

brand extension @ marginal costmarketing cross-promotionlimit cash investment (Ads for

Equity) 2000 7.7

(10.0) 1999 0.4

(2.1) Group Web Stats: No. of Web Sites Page Impressions / month Total Investment to Date Value of Quoted Investment Headcount 48 100m € 78m € 110m 203 34 34m

INDEPENDENT DIGITAL

internet - portals news sites sport classified entertainment financial travel e-commerce business 2 business mobile information education / databases broadband - digital TV - telephony

SUMMARY

• • Geographically diversified - with tight focus on core competencies Unique brand leadership positions - dominant in 4 out of 5 markets • Highly cash generative business • Clear strategy for operating margin enhancements • All divisions performing well • “Hype-Less” new media strategy • Increasing value of our Irish cable / telephony business

SUMMARY

• • • Belfast Telegraph acquisition - EPS enhancing Citywest development further enhancing Irish performance Track record of unbeatable shareholder return

SHAREHOLDER RETURN – Since 1973

€336,000 C.A.G.R. + 23%

OUTLOOK

• Core businesses performing well • Too early for current year forecasts because of uncertainty in global markets • Focus on cost containment • Group well positioned for future growth

INDEPENDENT NEWS & MEDIA PLC