[PPT] - Agora SA Investor presentation Investor presentation Financial and PowerPoint Presentation

SLIDE 1

Agora SA

Investor presentation Investor presentation

Financial and market performance 1Q 2011

SLIDE 2

Television 50% Outdoor 7% Internet 15% Cinema 1% Dailies 8.5% Magazines 11% Radio 7.5%

20%
10%

0% 10%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

Small growth of advertising market

2-

Quarterly ad spend performance

32%
24%
16%
8%

0% 8% 16% 24% 32% 40% 48%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Internet Television¹ Magazines Radio Outdoor Dailies Cinema

Quarterly performance of ad market segments Advertising market structure in 1Q 2011

PLN 1.7 billion

2.5%

2pp 0.5pp 1pp 0.5pp 0.5pp 0pp 0.5pp

8

8. .5% 5%

17

17. .5% 5%

14

14. .5% 5%

10

10. .5% 5% 0% % +6 +6. .5% 5% +7 +7. .5% 5% +4 +4. .5% 5% + +2.5 2.5% %

yoy % change yoy % change

yoy % and pp changes Source: ad spend estimates by: Agora (press based on Kantar Media and Agora’s monitoring, radio based on Kantar Media), Starlink (TV, cinema, Internet – comprise revenues from e- mail marketing, display, search engine marketing and affiliate marketing), IGRZ (outdoor); ¹ Data, for 1Q09 -1Q11, according to new methodology of TV ad market measurement (by media house Starlink), comprise standard TV advertising and sponsoring revenues. The estimates for previous reporting periods have not been adjusted adequately therefore they are not fully comparable.

SLIDE 3

11-13% 3-5% 5-6% (-3%)-(-5%) 0-2% 13-15% 6-8% 6-7% 3-5% 13-15% 6-8% 3-5% 3-5% 2-4% (-7%)-(-9%) (-1%)-(-3%)

12%
6%

0% 6% 12% 18% 24%

Total ad market television internet magazines dailies

utdoor

radio cinema

estimates February 11 estimates May 11

2% 21%

4%
5%

2.5% 11.5%

7.5%
9.5%
12%
6%

0% 6% 12% 18% 24%

Total ad market television Internet magazines dailies radio

utdoor

cinema

Change of advertising market estimates

3-

Quarterly performance of ad market segments in 1Q2011 (vs 1Q2010) Change of advertising market estimates for 2011

Source: 1Q 2011: ad spend estimates by: Agora (press based on Kantar Media and Agora’s monitoring, radio based on Kantar Media), Starlink (TV, cinema, Internet – comprise revenues from e-mail marketing, display, search engine marketing and affiliate marketing), IGRZ (outdoor); 2011 – Agora’s own estimates.

yoy % change yoy % change

SLIDE 4

F inancial performance of the Group

4-

Source: consolidated financial statements according to IFRS, 1Q11; ¹ excluding non-cash cost of share-based payments;

PLN million 1Q 2011 1Q 2010 yoy change Revenues, incl.: 295.8 248.1 19.2%

advertising
copy sales
tickets sales
other

157.8 51.1 41.4 45.5 159.3 53.3

35.5

(0.9%) (4.1%)

28.2%

Operating cost, incl.: 285.6 231.4 23.4%

raw materials, energy and consumables

61.9 45.2 36.9%

staff cost¹

77.3 68.6 12.7%

non-cash expense relating to share-based

payments 4.5 3.1 45.2%

marketing & promotion

26.1 25.9 0.8%

D&A

22.0 19.8 11.1% EBIT 10.2 16.7 (38.9%) EBIT margin 3.4% 6.7% (3.3 pp) Operating EBITDA¹ 36.7 39.5 (7.1%) Operating EBITDA margin¹ 12.4% 15.9% (3.5 pp) Net profit 6.1 21.7 (71.9%)

Growth of revenues caused by consolidation in the Group’s results the revenues of Helios group. Growth resulting from the increased number

f employees due to the purchase of Helios

group and execution of development projects in the Group. The growth results mainly from the consolidation of the operating cost of the Helios group. The decrease caused mainly by lower copy sales revenues in the Newspapers and Magazines segments. The growth results mainly from the inclusion

f revenues from food and beverages sales

in Helios cinema network. The decrease results mainly from lower advertising revenues of the Newspapers’ segment. The growth results mainly from the inclusion of the cost of purchase of products to be sold in the bars located in Helios cinema network, cost of materials and energy of Helios group, as well as higher cost of production materials and higher cost of launching book collections in 1q 2011 by Special Projects.

SLIDE 5

5-

Financial performance¹

Source: financials: consolidated financial statements according to IFRS, 1Q11; ad spend in dailies: Agora, display advertising, 1Q11; ¹ incl. Gazeta, Metro, Special Projects, Printing Division; ² excluding allocations of general overhead cost of Agora S.A.; ³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.

PLN million 1Q 2011 1Q 2010 yoy change Revenues, incl.: 144.4 156.3 (7.6%)

advertising in Gazeta

61.9 73.2 (15.4%)

copy sales of Gazeta

33.2 37.3 (11.0%) 16.5 31.7 47.4 117.2 Operating cost, incl.: 122.2 4.3%

raw materials, energy, consumables

and printing services 50.4 6.3%

staff cost excl. non-cash cost of

share-based payments 33.1 4.4%

marketing & promotion

17.0 3.0% 30.2% 47.2 25.0% 39.1 EBIT ² 22.2 (43.2%) EBIT margin² 15.4% (9.6 pp) Operating EBITDA³ 30.3 (35.8%) Operating EBITDA margin³ 21.0% (9.2 pp)

The growth caused mainly by launching higher number of series of books by Special Projects. The growth caused by higher promotion cost of Special Projects. The decrease caused by smaller number and impact of dual pricing

ffer and global trend of copy sales

decline. The influence, i.a., of development projects executed in the segment. The decline in revenues caused mainly by limited expenditure in the following advertising categories: automotive, telecommunication, announcements and recruitment.

Segment performance: Newspapers

(Gazeta, Metro, Special Projects, Printing Division)

SLIDE 6 150 300 450 600 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09 Sept09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sept10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11

Fakt Gazeta Super Express Rzeczpospolita Dziennik Dziennik Gazeta Prawna²

Polskapresse 15.5% Other 9.5% Fakt 9% Mecom (local) 7.5% Super Express 3.5% Rzeczpospolita 9% Metro 4% Gazeta 38%

Position of Gazeta in dailies segment

6-

Copy sales of dailies¹

Source: copy sales: ZKDP, total paid circulation, Jan09 – Mar11, comparison; financials: consolidated financial statements IFRS, 1Q11; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Jan-Mar 11, N=12 196, CCS indicator (weekly readership), elaboration Agora S.A.; ad spend in dailies Agora, estimates, display advertising; ¹ comparison of major dailies only; ² the title appeared on the market on September 14, 2009 from the merger of Gazeta Prawna and Dziennik. Previous copy sales data based on copy sales of Gazeta Prawna. The copy sales of Dziennik Gazeta Prawna in the period Sep 14-30 amounted to 126 thou. copies.

14.3% 7.0% 5.9% 4.2% 2.7% 13.9%

0% 4% 8% 12% 16%

Dziennik Gazeta Prawna Rzeczpospolita Metro Super Express Gazeta Wyborcza Fakt

4.3 million 4.2 million

No. of readers

0.8 million 1.8 million 1.3 million

Weekly readership reach in 1Q 2011¹

(till Sept. 11, 09 Gazeta Prawna) 2.1 million Dziennik Gazeta Prawna 4% 0.5pp 1pp 0.5pp

Dailies ad spend structure¹

1pp

1Q 2011

PLN 0.14 billion

9.5%

2pp 0pp 176 K 312 K 403 K 135 K 100 K 0pp 0.5pp 0.5pp

thou. copies

yoy % and pp change % reach

SLIDE 7

1.2 million

1.9 million

3

3 6 9 12 15 18

1Q 2010 1Q 2011 Revenue EBIT² 13% 3% 3%

0% 5% 10% 15%

Warsaw local national

0.3 million

0.7 million

2

2 4 6 8

1Q 2010 1Q 2011 Revenue

perating EBITDA¹

Metro and Special Projects

7-

Metro ad market share in 1Q 2011

Source: financials: consolidated financial statements according to IFRS, 1Q11; ad expenditure in dailies: Agora’s estimates, display advertising; ¹ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.; ² excluding allocations of general overhead cost of Agora S.A.; ³ books and books with CDs and DVDs.

Statistics Financial performance Financial performance 0.6 13 5 8 1Q 2011 1Q 2010

Series

6

One-offs

9

Total:

15

Copies sold (million)³

0.7

13.5%

Metro Metro Special Projects Special Projects

PLN million

15.1%

yoy % change

4%

(Total)

(excl. Warsaw) % share PLN million yoy % change

SLIDE 8

54.8% 61.1% 64.0% 66.0% 72.6%

0% 30% 60% 90%

Onet.pl group Wirtualna Polska group Gazeta.pl group Interia.pl group

2.pl group
8-

Reach of websites of selected Internet publishers ( February‘10) Financial results¹

Dynamic growth of revenues in Internet segment

yoy pp change Source: financials: consolidated financial statements according to IFRS, 1Q11; Internet ad spend: Starlink (display, search engine marketing, e-mail marketing and affiliate marketing); Internet statistics: Megapanel PBI/Gemius, reach, real users, Feb 2010, Feb 2011; ¹ Internet division, Agora Ukraine, AdTaily, Trader.com (Polska) including print revenues; ² excluding allocations of general overhead cost of Agora S.A.; ³ excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.

5,7%

13.5 million 12.2 milioln 11.9 million 11.3 million 10.2 million

11.4% 8.2% 4.2% 6.4% 0.5 pp 0 pp 2.9 pp 1.0 pp

21% 29% 35% 14%

0% 20% 40%

Internet ad market AGORA

Display, e-mail marketing, vortals Display & e-mail marketing Display & e-mail marketing TOTAL

(display, search engine marketing, e-mail marketing and affiliate marketing)

Dynamics of ad expenditure in Internet in 1Q 2011

PLN million 1Q 2011 1Q 2010 yoy change

Revenues, incl.:

25.9 21.2 22.2%

display ads

18.0 13.3 35.3%

incl. Trader.com (Polska)

1.4 0.7 100.0%

vortal ad sales

6.3 5.6 12.5%

incl. Trader.com (Polska)

2.9 2.6 11.5%

Operating cost, incl.:

24.5 21.3 15.0%

staff cost excl. non-cash cost
f share-based payments

11.6 10.6 9.4%

marketing & promotion

3.5 3.5 0.0%

EBIT ² 1.4 (0.1)

EBIT margin²

5.4% (0.5%) 5.9 pp Operating EBITDA³ 3.3 1.8 83.3% Operating EBITDA margin³ 12.7% 8.5% 4.2 pp

1.2 pp

New VOD service Kinoplex.Gazeta.pl

% reach

no. real users

yoy % change

SLIDE 9

sales 23% food 9% 14% 15% 7% 18% 4% 4% clothing/shoes 6% telecommunication automotive/transport home nad office furnishing finance/marketing entertainment, culture

ther

AMS 32%

AMS ad market share²

9-

Financial results

Outdoor segment improves operating results

4pp

1Q 2011

2.7% 15.3% 11.8% 0.9%

Structure of outdoor advertising according to categories

34.5% 2.0% 15.9% 5.8% 2.0%

Source: financials: consolidated financial statements according to IFRS, 1Q11; ad expenditure in outdoor: IGRZ; ¹ excluding non-cash cost of share-based payments; ² excluding cross-promotion of Agora’s other media on AMS panels if such promotion was executed without prior reservation.

PLN million 1Q 2011 1Q 2010 yoy change Revenues, incl.: 35.8 35.0 2.3%

advertising

35.0 34.5 1.4%

Operating cost, incl.: 37.8 40.0 (5.5%)

execution of campaigns

5.5 6.0 (8.3%)

maintenance cost

18.6 18.7 (0.5%)

staff cost (excl. non-cash cost
f share-based payments)

4.8 4.6 4.3%

D&A

4.6 5.6 (17.9%)

marketing & promotion

1.3 1.0 30.0%

EBIT (2.0) (5.0) 60.0%

EBIT margin

(5.6%) (14.3%) 8.7 pp Operating EBITDA ¹ 3.0 0.8 275.0%

Operating EBITDA margin¹

8.4% 2.3% 6.1 pp

Increase in advertising revenues in AMS vs outdoor advertising market decline of

ver 5% yoy.

The result of lowering system maintenance cost, limiting printing services for external clients and decrease in number of non-standard advertising campaigns.

1Q 2011 5%

yoy pp and % change

% share, yoy % change

SLIDE 10

Ad spend structure in monthlies

10-

Financial results

Stable position of magazines

Murator 6.9%

ther

17.2% Burda Media Polska 9.0% Marquard 11.2% A gora 8.8% Gruner+Jahr 13.3% 5.1% Edipresse 6.8% Bauer 21.7%

1Q 2011

7.6pp 2.6pp 0.7pp 3.6pp 1.0pp 0.8pp 4.2pp 1.7pp 0.4pp

Stable readership position in selected magazine segments

(women, 1Q11)

Ringier Axel Springer

Source: financials: consolidated financial statements according to IFRS, 1Q11; monthlies ad market: monitoring of Kantar Media based on rate card data, 124 titles in 2010 and 126 in 2011, excl. specialist titles; readership: Polskie Badania Czytelnictwa, execution MillwardBrown SMG/KRC, Jan-Mar 11, N=6 251, CCS indicator (weekly readership), elaboration Agora S.A., comparison; Internet statistics Megapanel PBI/Gemius, page views, Feb 2010, Feb 2011; ¹ excluding allocations of general overhead cost of Agora S.A.; ² excluding non-cash cost of share-based payments and allocations of general overhead cost of Agora S.A.

PLN million 1Q 2011 1Q 2010 yoy change Revenues, incl.: 17.8 20.5 (13.2%)

copy sales

8.0 9.8 (18.4%)

advertising

9.7 10.6 (8.5%)

Operating cost, incl.: 14.5 16.9 (14.2%)

raw materials. energy and consumables

6.2 6.6 (6.1%)

staff cost excl. non-cash cost
f share-based payments

4.2 4.1 2.4%

marketing & promotion

2.8 4.6 (39.1%)

EBIT ¹ 3.3 3.6 (8.3%) EBIT margin¹ 18.5% 17.6% 0.9 pp Operating EBITDA² 3.6 3.8 (5.3%) Operating EBITDA margin² 20.2% 18.5% 1.7 pp

Limited number and intensity of advertising campaigns. Lower cost of paper consumption (price, favorable EUR/PLN exchange rate), lower production volume, change of paper mix and size of selected magazines. Result of limited advertising expenditure in categories: construction, furnishing, motorcycles and scooters. Decrease resulting from 8.1% yoy drop in volume

f magazines sold.

5.1 million 0.6 million 6.0 million 7.9 million 1.1 million 7.6 million

3 6 9

Avanti24.pl Logo24.pl CzteryKaty.pl

Feb 10 Feb 11 Growth in no. of page views in services of selected magazines (February 2011)

million

27% 88% 55%

1.2% 3.9% 5.5% 5.8% 7.9% 9.8% 19.4% 0% 6% 12% 18% 24% Hot Moda & Shopping Cosmopolitan Glamour T wój Styl

women luxurious

2.6% 3.2% 3.9% 4.3% 11.4% 0% 5% 10% 15% Dobre Wnętrze Dom&Wnętrze M j ak Mieszkanie Moje Mieszkanie Cztery Kąty

interior home design

10.8% 11.7% 12.3% 12.5% 14.5% 17.0% 0% 5% 10% 15% Dobre Rady Oliwia Kobieta i Życie Świat Kobiety Poradnik Domowy Claudia

lifestyle

Avanti Joy Elle yoy pp change yoy % change

% reach % reach % reach

SLIDE 11

Radio ad market structure

11-

Segment performance: Radio Segment performance: Radio

Polskie Radio 12% Other 6% Eurozet 20.5% A gora 11.5% Time Group 18% RMF Group 32%

Increase of audience share in cities of broadcasting (1Q11)

4.5pp 2.5pp 1.5pp

6.8% 5.3%

0% 4% 8%

TOK FM Music stations

0.8 pp 11.5%

0 pp

0.6 pp 1Q 2011

PLN 0.13 billion

Financial performance¹

0.5pp 0 pp

Widening channels of distribution

PLN million 1Q 2011 1Q 2010 yoy change Revenues, incl.: 18.0 16.0 12.5%

ad revenues

17.7 15.8 12.0%

Operating cost, incl.: 18.6 15.0 24.0%

staff cost excl. non-cash cost
f share-based payments

6.4 6.2 3.2%

promotion & marketing

3.1 1.8 72.2%

EBIT (0.6) 1.0

EBIT margin

(3.3%) 6.3% (9.6 pp) EBITDA operacyjna² 0.2 1.9 (89.5%)

Operating EBITDA margin²

1.1% 11.9% (10.8 pp)

Execution of large advertising campaign of Złote Przeboje. Higher revenues from brokerage services and barter transactions

Tuba.FM in telephones with Android system

Influence of, i.a., cost of time purchase in third party radio stations (brokerage services) and barter transactions.

Source: financials: consolidated financial statements according to IFRS, 1Q11; ad market: Agora based on Kantar Media, Agora’s share incl. TOK FM, excl. brokerage, incl. cross-promotion

f Agora’s other media in GRA’s radio stations if such promotion was executed without prior reservation; Radio Track, MillwardBrown SMG/KRC, cities of broadcasting, 15+, TOK FM – Jan-Mar 10: N=7 747, Jan-Mar

2011: N=7 764, music stations – Jan-Mar 2010: N=21 068, Jan-Mar 2011: N=21 053; ¹ local radio stations (incl. TOK FM); ² excluding non-cash cost of share-based payments.

yoy pp change yoy pp change % share yoy % and pp change

SLIDE 12

3D 17% 2D 83%

12-

Cinema business in the Agora Group

Financial performance

PLN million 1Q 2011 Revenues, incl.: 55.3

tickets

41.4

food & beverages

11.5

advertising

2.1

Operating cost, incl.: 47.3

external services

27.5

raw materials, energy and consumables

6.5

staff cost excl. non-cash cost of share-based payments

6.1

D&A

4.3

EBIT 8.0 EBIT margin 14.5% EBITDA operacyjna¹ 12.3 Operating EBITDA margin¹ 22.2%

Share of tickets for 3-D movies in Helios network of cinemas

Source: financials: consolidated financial statements according to IFRS, 1Q11; ¹ As far as the Helios group is concerned EBITDA and operating EBITDA ratios are equal as in the period referred to in the table there was not any non-cash cost

f share-based payments incurred;

Number and average price of tickets in the cinemas of Helios group

2.5 million 2.4 million PLN 16.8 PLN 18.9

1 2 3

1Q 2010 1Q 2011

7 14 21

no. of tickets sold

average ticket price

Accelerated process of cinema digitalization in Helios group

67 24

20 40 60 80

August 31, 2010 March 31, 2011

11

11% %

1Q 2011

8 pp

+2.6 +2.6% %

PLN yoy % change million tickets

no. of digital projectors

yoy pp change

SLIDE 13

The Group’s main objectives in 2011

13-

Exploitation of possibilities offered by the Internet to develop new forms and scope of activities in the so – called traditional media segments; Cost control enabling further development of existing businesses and launching new projects; Using internal synergies to take advantage of the Group’s multimedia resources and competencies, especially in the field of content distribution and monetization within the Group; Further development of current multimedia competence centres within the Group; Increasing the scale of the Group’s operations, inter alia, through further acquisitions strengthening the Group’s position and/or diversifying the sources

f the Group’s revenues.

SLIDE 14

14-

This presentation has been prepared by Agora SA (the "Company"). The data and information contained on the individual slides do not show a complete or coherent financial analysis, nor present the commercial offer of the Company and serve for information purposes only. A detailed description of the business and financial affairs of Agora SA is presented on www.agora.pl website. All data therein are based on sources which the Company regards as

credible. The Company reserves the right to amend data and information at any time, without

prior notice. This presentation was not verified by an independent auditor. This presentation may contain slides containing statements related to the future. Such statements cannot be interpreted as forecasts or other assurances in respect of future Company's financial results. The expectations of the Company's management are based on their knowledge, experience and individual views and are dependent on many factors which may cause that the actual results may differ from statements contained in this document. The Company recommends that professional investment advice is sought in case any investment in the Company's securities is considered.