Trinity Mirror plc ANNUAL RESULTS 29 February 2016

Transcription

1 2015 ANNUAL RESULTS 29 February 2016

2 Today s agenda Highlights Financial update Simon Fox Vijay Vaghela Strategic and operational update Simon Fox 1

3 Highlights Group financial performance (a) Group revenue down 6.9% Adjusted operating profit up 3.9% Adjusted earnings per share of 33.9 pence, up 3.4% Strong cash generation Proposed final dividend of 3.15 pence per share (full year dividend: 5.15 pence) Continued growth in digital (b) Average monthly unique users and page views up 34% and 42% year on year respectively Underlying publishing digital revenue up 22% with display advertising up 33% Strategy remains on track and good progress made on integration of Local World The Board has confidence in the Group s performance for 2016 Notes: (a) Adjusted results described on page 44 (b) Digital growth numbers reflect Trinity Mirror only 2

4 Vijay Vaghela GROUP FINANCE DIRECTOR 3

5 Adjusted and underlying performance Focus on adjusted results which provide a more meaningful comparison of performance No difference between adjusted and statutory revenues References to underlying revenue performance excludes the following: Revenue m m Acquisition of Local World Closure of certain titles in the South Cessation of newsprint supply (Independent and i) Total

6 Group performance Group revenue Operating profit Profit before tax Earnings per share 592.7m 109.6m 107.5m 33.9p -6.9% +3.9% +5.1% +3.4% Underlying revenue fell 7.8% with an 8.7% decline in H1 and 6.9% decline in H2 Excluding Local World operating profit post acquisition, operating profit up 1.3% ( million) A robust performance in a difficult print market 5

7 The acquisition of Local World Implied Enterprise Value of million Actual equity value of million Total consideration m 80.02% equity acquired Debt and debt-like items 23.3 Transaction costs 5.6 Total Funded by m Cash payable in the future 5.2 Term loan 80.0 Equity placing 34.5 Shares issued 5.9 Cash paid in Total Net cash payments in 2015 of million 6

8 Local World s financial performance Post acquisition contribution to Trinity Mirror Group ( m) Revenue Full year ( m) (a) (0.6) (b) Print - circulation Operating profit Print - advertising Print - other Digital Contract printing supplied by Trinity Mirror Group Operating profit post acquisition was 2.7 million Local World contribution to revenue Revenue Operating profit YoY revenue trends: Total publishing: -5.8% Circulation: -2.4% Print advertising: -12.6% Print other: -8.2% Digital: +22.4% Note: (a) Full year contribution from Local World if Trinity Mirror had owned 100% of the business for the full year. The revenue is net of 6.3m of printing revenue and commission income treated as internal revenue (b) Before removing our share of associate income of 5.1 million 7

9 Publishing Revenue Operating profit ( m) and margin (%) Underlying m m % Var % Var Print (6.8)% (9.5)% Digital % 21.9 % Total (4.5)% (7.6)% 113.7m 0.2% 21.5% 20.5% Operating costs Var Var m m m % Operating costs (415.1) (440.5) % Operating profit Operating margin Excluding Local World, operating costs fell by 43.9 million 8

10 Publishing print Publishing - print revenue Underlying m m % Var H1 % Var H2 % Var FY % Var Circulation (2.9)% (5.6)% (4.4)% (5.0)% Advertising (13.0)% (17.5)% (15.8)% (16.6)% Display (16.6)% (20.1)% (16.5)% (18.3)% Classified (5.7)% (12.2)% (14.7)% (13.4)% Other (19.1)% (22.2)% (15.6)% (19.1)% Other (1.2)% (12.9)% 8.6 % (2.2)% Revenue (6.8)% (10.9)% (8.0)% (9.5)% National titles delivered a solid circulation volume performance in a declining market Daily Mirror outperformed the UK red top market Some regional titles performed well relative to the market Continued volatility and pressure in national advertising driven by slowdown in retail and reduced spend in the telecoms, motors and entertainment sectors Rugby World Cup match day programmes generated revenue of almost 4 million in

11 Publishing digital Publishing - digital revenue Underlying m m % Var H1 % Var H2 % Var FY % Var Advertising % 25.8 % 15.1 % 19.6 % Display % 44.0 % 24.1 % 32.6 % Classified recruitment % (1.3)% (8.8)% (4.8)% Classified other % (3.3)% (1.6)% (2.5)% Other % 35.3 % 39.7 % 38.5 % Revenue % 26.8 % 18.2 % 21.9 % Display (underlying) now accounts for 72% of digital advertising revenues Growth in display advertising reflects the benefit of strong growth in digital audience Classified advertising largely upsold from print Strong growth in other revenues We are reaping the benefits of our investment in digital 10

12 Printing 44.9m Revenue ( m) 30.4% (Underlying: -14.8%) % Contract printing 22% Newsprint supply 12.8% (Underlying: -11.2%) 59.3% (Underlying: -25.0%) % Other 15.4% (Underlying: -15.4%) Publishing division charges Printing and newsprint costs of our print titles are down 16.4% year on year from 124.4m to 104.0m 11

13 Other segments Specialist Digital Var m m % Advertising % Other % Revenue % Costs (12.8) (12.5) (2.4)% Operating profit % Central Var m m % Other % Revenue % Costs (16.3) (19.4) 16.0 % Associates (1.6)% Operating loss (6.7) (10.0) 33.0 % Received dividends of 16.3 million from associates in the first half 12.0 million from Local World and 4.3 million from PA 12

14 Cost savings 489.1m 536.9m 8.9% Other Depreciation Newsprint Labour Operating costs fell 47.8 million Underlying costs fell by over 50 million Structural cost savings of 20 million Fall in newsprint prices Mitigating actions 15 million of structural cost savings targeted, including synergy savings, for 2016 On track to deliver annualised synergy savings of 12 million in

15 Non-recurring items and restructuring charges Non-recurring items m m Provision for historical legal issues (29.0) (12.0) Closure of print sites (3.4) - Local World acquisition transaction costs (5.6) - Gain on deemed disposal of Local World associate interest Non-recurring items excluding associates (4.4) (12.0) Non-recurring items included in associates (1.3) 27.2 Total non-recurring items including associates (5.7) 15.2 Restructuring charges Restructuring charges of 15.3 million in delivering the 20 million of structural cost savings in 2015 Anticipate restructuring charges of 20 million in

16 Pensions Pensions Var m m m Fair value of scheme assets 1, ,562.0 (33.6) Present value of scheme liabilities (1,833.6) (1,863.2) 29.6 Net scheme deficit (305.2) (301.2) (4.0) Net scheme deficit after deferred tax (250.2) (241.0) (9.2) Movement in assets and liabilities is substantially driven by the payment of benefits and transfers of 89.2 million The balance of the movement in assets relates to asset returns, contributions and a fall in the real discount rate of 5 basis points to 0.6% A 0.5% movement in the discount rate could impact the deficit by between and million Almost 20% of liabilities are secured by insurance contracts Almost 50% of assets, excluding the insurance contracts are held in equities with the balance mainly in bonds, gilts and cash 15

17 Cash flow (20.0) (3.6) (1.1) (16.1) (12.9) (9.7) 16.3 (12.5) (8.6) 63.8 (137.4) (73.6) Minimal capex spend in 2015 with anticipated spend of 16 million in 2016 Cash balances as at 27 December 2015 were 55.4 million 16

18 Financing Financing Var m m m Loan notes Term loan (80.0) Cash balances (55.4) (49.0) 6.4 Contracted net debt (73.6) Leverage below one times The US private placement loan notes are repayable in June 2017 The 80.0 million term loan is committed for five years with the first instalment of 15.0 million due in October 2016 Undrawn revolving credit facility of 60.0 million which is committed until July

19 Current trading and outlook Strategy remains on track and the Group is making good progress with the integration of Local World Revenue environment remains volatile Assuming Local World owned for the whole of 2015, on a like for like basis, revenue for the first two months of the year fell by 9% The delivery of our strategy provides the Board with confidence in the Group s performance for 2016 Launch of our new national newspaper, The New Day Have applied and will continue to apply our ongoing financial disciplines to this new initiative If launch proves successful, title expected to move into profit by the end of the year 18

20 Simon Fox CHIEF EXECUTIVE 19

21 The acquisition of Local World We are better together UK s largest regional news publisher Daily reach into 14 of the top 20 cities Average weekly circulation of over 10 million Combined digital audience of over 120 million unique users* (33% increase) Cost synergies in 2017 of 12 million Earnings enhancing this year Sources: Omniture (Dec 2015), Local Media Works (Jan 2016) Note: *Aggregate of Trinity Mirror and Local World monthly unique users (not deduped) 20

22 The acquisition of Local World Integrating Local World Combined regional businesses under a single Managing Director, Rachel Addison Structured the teams to extract the best of Trinity Mirror and Local World Making good progress with integration Managing Director Rachel Addison Chief Operating Officer Steve Anderson-Dixon Regional MDs Local operations Commercial Director Blanche Sainsbury Local sales Incl. regional recruitment private advertising Trinity Mirror Group Editorial National sales Incl. digital display & classified Newspaper sales Product Operations & integration All support functions 21

23 The acquisition of Local World Cross-sharing of best practice, content and resources Digital-first approach to publishing Central commercial direction driving recruitment and classified sales strategies 22

24 Areas of strategic focus Strategic focus Protecting and revitalising our core brands in print KPI Outperform print trends Growing our existing brands onto digital delivery channels Digital growth Continuing our relentless focus on efficiency and cost management Launching, developing, investing in or acquiring new businesses built around distinctive content or audience Targeted cost savings Portfolio of growing businesses Deliver sustainable growth in revenue and profit 23

25 Protecting and revitalising our core brands in print 24

26 Protecting and revitalising our core brands in print Birmingham Mail re-launched Launched in October 2015 Circulation trends improved by 2-3% since relaunch Positive feedback from readers 25

27 Protecting and revitalising our core brands in print Positive disruption You, Me & the Apocalypse Fully disruptive and immersive campaign with Mediacom: masthead takeover, cartoon strip adaptation and website meteorite. Drove 1.6 million viewers for the premiere 26

28 Growing our existing brands onto digital delivery channels 27

29 Growing our existing brands onto digital delivery channels Our scale in digital Newsbrands digital audience in the UK December 2015 (m) Mail Online Trinity Mirror (incl. Local World) Trinity Mirror (excl. Local World) Guardian Telegraph Source: Comscore multi-platform UK only, December 2015 Note: Aggregate of Trinity Mirror and Local World unique users 28

30 Growing our existing brands onto digital delivery channels Continue to grow our Group audience and page views Group monthly unique users (m) Group monthly page views (m) % +25% 101.3m 122.7m m 851.5m Dec-14 Dec-15 Dec-14 Dec-15 Source: Omniture (includes desktop, mobile and apps) Note: Aggregate of Trinity Mirror and Local World monthly unique users is not deduped Aggregate of Trinity Mirror and Local World 29

31 Growing our existing brands onto digital delivery channels Trinity Mirror digital revenues Publishing digital revenues 2014 and 2015 ( m) Publishing digital revenues 2015 ( m) +39% % % % Display Classified Other Note: The above excludes Local World 30

32 Growing our existing brands onto digital delivery channels Dynamic news feed launched across four platforms Apple News Google Play Newsstand Instant Articles Accelerated Mobile Pages 31

33 Growing our existing brands onto digital delivery channels newsletters and single sign-in 32

34 Growing our existing brands onto digital delivery channels Refreshed video offering Monthly video views up 100% YoY 2015 video revenues up 200% YoY Source: Brightcove 33

35 Continuing our relentless focus on efficiency and cost management 34

36 Continuing our relentless focus on efficiency and cost management Cost management remains a key area of focus We delivered 20 million of structural cost savings in 2015 Actions undertaken include Restructuring of editorial and advertising functions Continued rationalisation of our manufacturing facilities Consolidation of pre-press operations Rationalisation of the property portfolio Targeted structural cost savings of 15 million, including synergy savings, in

37 Launching, developing, investing in or acquiring new businesses built around distinctive content or audience 36

38 Launching, developing, investing in or acquiring new businesses built around distinctive content or audience New product development Acquisition Strong balance sheet Acquisition of 80.02% not previously owned of Local World 37

39 Launching, developing, investing in or acquiring new businesses built around distinctive content or audience First new standalone national daily newspaper in 30 years Gap in the market Consumer led product Modern print product reimagined for the 21 st century Innovation at the heart of production Making extensive use of existing technology, editorial systems, advertising sales capability and printing capacity Financially attractive opportunity 38

40 The New Day 39

41 In summary 40

42 Summary Robust financial performance despite challenging print environment Rapid cost actions to mitigate profit impact of revenue declining Digital growth continues and strategy remains on track Strong balance sheet with financial flexibility Board has confidence in the performance for

43 THANK YOU Questions

44 Appendices 43

45 Income statement Statutory Statutory Adjusted* Adjusted* m m m m Group revenue Operating profit Adjusted operating profit Non-recurring items (5.7) Restructuring charges (15.3) (14.0) - - Amortisation of intangibles (4.3) (4.9) - - Pension administrative expenses (2.1) (3.2) - - Profit before taxation Operating profit Investment revenues Finance costs (4.7) (6.1) (2.7) (3.5) Pension finance charge (10.9) (11.2) - - Earnings per share - statutory 30.2p 28.1p Earnings per share - adjusted* 33.9p 32.8p * On an adjusted basis - adjusted items relate to the exclusion of non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the pension administrative expenses, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the impact of tax legislation changes. A reconciliation between the statutory results and the adjusted results is provided on page

46 Revenue and operating profit by division Change Change m m m % Publishing (25.2) (4.5%) Printing (19.6) (30.4%) Specialist Digital % Central % Revenue (43.6) (6.9%) Publishing % Printing Specialist Digital % Central (6.7) (10.0) % Adjusted operating profit % Underlying revenue by division Change Change m m m % Publishing (41.9) (7.6%) Printing (7.9) (14.8%) Specialist Digital % Central % Underlying revenue (48.6) (7.8%) 45

47 Publishing Change Change m m m % Print (35.7) (6.8%) Digital % Revenue (25.2) (4.5%) Costs (415.1) (440.5) % Adjusted operating profit % Adjusted operating margin 21.5% 20.5% 1.0% 4.9% Printing Change Change m m m % Contract printing (4.8) (12.8%) Newsprint supply (14.4) (59.3%) Other revenue (0.4) (15.4%) Revenue (19.6) (30.4%) External costs (148.9) (188.9) % Publishing division recharge (20.4) (16.4%) Adjusted operating result

48 Balance sheet Dec Dec m m Intangible assets Property, plant and equipment Investment in associates Retirement benefit assets Deferred tax assets Derivative financial instruments Non-current assets 1, ,123.1 Cash and cash equivalents Short-term debt (15.0) - Medium-term debt (132.6) (65.3) Retirement benefit obligations (334.6) (319.0) Deferred tax liabilities (175.9) (178.0) Provisions (50.7) (30.2) Net current other assets Non-current liabilities and net current assets (628.1) (528.2) Net assets Share capital (28.3) (25.8) Share premium account (606.7) (606.7) Merger reserve (37.9) - Capital redemption reserve (4.4) (4.4) Retained earnings and other reserves (6.3) 42.0 Equity (683.6) (594.9) 47

49 Group revenue trends 2015 Q1 Q2 H1 Q3 Q4 H2 FY Publishing (8.1%) (11.1%) (9.6%) (7.0%) 8.3% 0.7% (4.5%) Print (10.0%) (13.2%) (11.6%) (9.0%) 5.3% (1.8%) (6.8%) Digital 29.5% 23.7% 26.8% 23.6% 49.9% 37.4% 32.4% Printing (27.1%) (29.7%) (28.4%) (32.3%) (32.8%) (32.6%) (30.4%) Specialist Digital 9.7% 7.0% 8.3% 4.5% 2.7% 3.6% 6.2% Central 26.7% 13.0% 18.8% (16.4%) 13.0% (3.1%) 9.1% Revenue (9.5%) (12.5%) (11.0%) (9.3%) 4.3% (2.5%) (6.9%) 2015 Underlying Q1 Q2 H1 Q3 Q4 H2 FY Publishing (7.3%) (10.4%) (8.8%) (6.2%) (6.5%) (6.3%) (7.6%) Print (9.2%) (12.4%) (10.9%) (8.2%) (7.9%) (8.0%) (9.5%) Digital 29.5% 23.7% 26.8% 23.6% 13.3% 18.2% 21.9% Printing (11.9%) (15.1%) (13.6%) (18.3%) (14.1%) (16.3%) (14.8%) Specialist Digital 9.7% 7.0% 8.3% 4.5% 2.7% 3.6% 6.2% Central 26.7% 13.0% 18.8% (16.4%) 13.0% (3.1%) 9.1% Revenue (7.1%) (10.3%) (8.7%) (7.1%) (6.8%) (6.9%) (7.8%) 2014 Q1 Q2 H1 Q3 Q4 H2 FY Publishing (3.8%) (1.1%) (2.5%) (4.2%) (7.6%) (5.9%) (4.2%) Print (5.3%) (3.3%) (4.3%) (6.3%) (10.0%) (8.2%) (6.3%) Digital 35.7% 60.9% 47.5% 48.2% 46.0% 47.1% 47.3% Printing 4.6% 2.3% 3.4% (5.8%) (8.5%) (7.0%) (1.8%) Specialist Digital (22.4%) (18.4%) (20.0%) (11.9%) 2.0% (5.2%) (13.2%) Central (1.8%) 13.4% 6.7% 26.6% 5.5% 13.3% 10.0% Revenue (3.5%) (1.2%) (2.3%) (4.4%) (7.4%) (5.9%) (4.1%) * Underlying revenue excludes revenue from Local World in 2015 ( 20.6 million being external revenue of Local World of 21.2 million less 0.6 million now being accounted for as internal printing revenue) and in 2014 from title closures in the South ( 4.5 million) and newsprint supply to the Independent and i ( 11.1 million) which ceased at the end of

50 Publishing revenue trends 2015 Q1 Q2 H1 Q3 Q4 H2 FY Publishing Print (10.0%) (13.2%) (11.6%) (9.0%) 5.3% (1.8%) (6.8%) Circulation (6.1%) (5.4%) (5.8%) (4.9%) 5.4% 0.1% (2.9%) Advertising (14.8%) (23.2%) (19.0%) (17.2%) 3.6% (6.7%) (13.0%) Other (13.1%) (14.1%) (13.8%) 8.0% 14.0% 11.4% (1.2%) Publishing Digital 29.5% 23.7% 26.8% 23.6% 49.9% 37.4% 32.4% Advertising 31.0% 21.1% 25.8% 20.3% 49.3% 35.6% 30.9% Other 18.5% 44.9% 35.3% 46.2% 54.2% 50.4% 43.6% Publishing (8.1%) (11.1%) (9.6%) (7.0%) 8.3% 0.7% (4.5%) 2015 Underlying Q1 Q2 H1 Q3 Q4 H2 FY Publishing Print (9.2%) (12.4%) (10.9%) (8.2%) (7.9%) (8.0%) (9.5%) Circulation (6.0%) (5.2%) (5.6%) (4.8%) (4.0%) (4.4%) (5.0%) Advertising (13.2%) (21.8%) (17.5%) (15.6%) (16.0%) (15.8%) (16.6%) Other (12.5%) (13.2%) (12.9%) 8.8% 8.4% 8.6% (2.2%) Publishing Digital 29.5% 23.7% 26.8% 23.6% 13.3% 18.2% 21.9% Advertising 31.0% 21.1% 25.8% 20.3% 10.3% 15.1% 19.6% Other 18.5% 44.9% 35.3% 46.2% 33.8% 39.7% 38.5% Publishing (7.3%) (10.4%) (8.8%) (6.2%) (6.5%) (6.3%) (7.6%) 2014 Q1 Q2 H1 Q3 Q4 H2 FY Publishing Print (5.3%) (3.3%) (4.3%) (6.3%) (10.0%) (8.2%) (6.3%) Circulation (1.2%) (1.1%) (1.2%) (2.3%) (4.0%) (3.1%) (2.1%) Advertising (10.7%) (7.0%) (8.8%) (11.4%) (16.4%) (14.0%) (11.4%) Other (0.7%) 3.2% 1.3% (7.0%) (13.0%) (10.5%) (5.1%) Publishing Digital 35.7% 60.9% 47.5% 48.2% 46.0% 47.1% 47.3% Advertising 33.2% 60.5% 46.7% 52.7% 49.6% 51.1% 48.9% Other 50.7% 67.3% 54.5% 27.8% 34.2% 31.1% 42.6% Publishing (3.8%) (1.1%) (2.5%) (4.2%) (7.6%) (5.9%) (4.2%) * Underlying revenue excludes revenue from Local World in 2015 ( 21.2 million) and in 2014 from title closures in the South ( 4.5 million). 49

51 Reconciliation of statutory results to adjusted results Nonrecurring Pension Restructuring Finance Tax Statutory items Amortisation charges charges costs items Adjusted results (a) (b) (c) (d) (e) (f) results m m m m m m m m 2015 Revenue Operating profit Profit before tax Profit after tax 77.0 (1.5) (17.2) 86.4 Basic EPS (pence) 30.2 (0.6) (6.7) Revenue Operating profit 98.6 (15.2) Profit before tax 81.6 (15.2) Profit after tax 69.8 (17.6) Basic EPS (pence) 28.1 (6.9) a) Non-recurring items relate to the items charged or credited to operating profit. b) Amortisation of the Group s intangible assets and amortisation included in share of results of associates. c) Pension finance charge and pension administrative expenses relating to the defined benefit pension schemes. d) Restructuring charges in respect of cost reduction measures. e) Impact of the translation of foreign currency borrowings and fair value changes on derivative financial instruments. f) Tax items relate to the impact of tax legislation changes due to the change in the future corporation tax rate on the opening deferred tax position and prior year tax adjustments included in the taxation credit or charge. 50

52 Cash flow m m Statutory operating profit Depreciation Pension deficit funding (net of pension administrative expenses) (17.9) (15.0) Share of associates results (2.2) (30.6) Gain on deemed disposal of Local World associate interest (33.6) - Other (including movements in working capital) Cash flows from operating activities Income tax paid (9.7) (17.3) Net interest paid (1.1) (3.6) Dividends received from associates Proceeds on disposal of subsidiary undertaking Net capital expenditure (3.6) (6.2) Purchase of shares for LTIP - (2.2) Acquisition of subsidiary undertaking (148.2) - Net debt acquired on acquisition of subsidiary undertaking (11.9) - Issue of share capital Increase in/(repayment of) borrowings 80.0 (44.2) Dividends paid (12.5) - Net increase in cash Cash at beginning of period Cash at end of period

53 Reconciliation of net debt Dec Dec m m Statutory net debt (88.7) (13.1) Loan notes at period end exchange rate Loan notes at swapped exchange rate (68.3) (68.3) Cross-currency interest rate swap (3.5) (3.2) Contracted net debt (92.9) (19.3) Financial covenants Minimum Maximum Interest Net Debt to Cover EBITDA US private placement loan notes Throughout term of notes 2.00x 4.00x 80 million five year term loan 12 months to December x 2.25x Thereafter 5.00x 2.00x Minimum cash flow* of 25 million 60 million revolving credit facility 12 months to December x 2.25x Thereafter 5.00x 2.00x Minimum cash flow* of 25 million * Cash flow before interest, debt repayment, acquisitions and dividends 52

54 Financing Change m m m Loan notes Term loan (80.0) Cash balances (55.4) (49.0) 6.4 Contracted net debt (73.6) Repayment schedule Term Loan Loan Notes Total m m m Total gross debt

55 Pension scheme assets 2015 % 2014 % m of total m of total UK equities % % US equities % % Other overseas equities % % Total equities % % Property % % Corporate bonds % % Fixed interest gilts % % Index linked gilts % % Cash and other % % Total non equities % % Insurance contracts % % Total value of scheme assets 1, % 1, % Total value of scheme assets excluding insurance contracts 1, % 1, % Total equities as % of assets excluding insurance contracts 49.8% 55.4% 54

56 Provisions Share-based payments Property Restructuring Other Total m m m m m At 28 December 2014 (1.4) (9.0) (3.6) (16.2) (30.2) Charged to income statement (0.2) (0.1) (15.3) (30.1) (45.7) Utilisation of provision Acquisition of subsidiary undertakings - (2.9) (0.9) - (3.8) At 27 December 2015 (0.3) (9.6) (3.7) (37.1) (50.7) Associates PA Group Local World m m m m Opening balance Share of results: Non-recurring items (0.1) 27.6 (1.2) (0.4) Amortisation of intangible assets (0.3) (0.3) (2.2) (2.4) Results before amortisation and non-recurring items Share of other comprehensive (costs)/income (3.1) 0.1 (0.1) (0.1) Dividends received (4.3) (12.9) (12.0) (3.1) Deemed disposal of Local World associate interest - - (4.9) - Closing balance

57 Group revenue Group Publishing Printing Specialist Digital Central Group Publishing Printing Specialist Digital Central m m m m m m m m m m Circulation Advertising Print Display Classified Recruitment Property Motors Other Other Digital Display Classified Recruitment Property Motors Other Other Print Digital Revenue

58 Group underlying revenue Group Publishing Printing Specialist Digital Central Group Publishing Printing Specialist Digital Central m m m m m m m m m m Circulation Advertising Print Display Classified Recruitment Property Motors Other Other Digital Display Classified Recruitment Property Motors Other Other Print Digital Revenue

59 National newspaper advertising market share (volumes) UK Dailies Daily Mirror 18.3% 18.5% 2. Sun 19.5% 19.9% 3. Daily Star 14.5% 16.3% 4. Daily Mail 22.5% 21.1% 5. Daily Express 25.2% 24.2% 100.0% 100.0% Sundays Sunday Mirror 17.5% 17.6% 2. Sunday People 11.3% 10.9% 3. Sun on Sunday 15.3% 12.7% 4. Mail on Sunday 29.9% 29.5% 5. Sunday Express 20.6% 22.4% 6. Daily Star Sunday 5.4% 6.9% 100.0% 100.0% Scottish* Dailies Daily Record 15.9% 15.0% Sundays Sunday Mail 26.6% 26.3% * Share of Scottish market Source: Nielsen Media Research 58

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