[PPT] - OUTPERFORMING, CHANGING, GROWING UPDATE KEVIN BEATTY, CEO 26 PowerPoint Presentation

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OUTPERFORMING, CHANGING, GROWING

KEVIN BEATTY, CEO

UPDATE

26 MARCH, 2013

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CHANGING PORTFOLIO

DIVESTMENT MERGER ACQUISITION

2012 – 2013

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A NEW CORPORATE IDENTITY

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SLIDE 4 4

SLIDE 5 Source: dmg media INVESTMENTS

plus

NEWSPAPERS 5 51% OWNED 100% OWNED 39% OWNED 50% OWNED 25% OWNED

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PERFORMANCE DRIVERS

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION

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Total Revenue Digital Print (Circulation and Advertising) FY12

£820m

+3%

£150m

+34%

£655m

1%

Source: dmg media FY12 FIGURES AND GROWTH RATES RELATIVE TO FY11. ADJUSTED TO EXCLUDE DISPOSALS AND PRINT/WASTE SALES AND TO INCLUDE JOBRAPIDO AND 50.8% OF ZOOPLA/TDPG. DIGITAL INCLUDES DIRECT FROM CONSUMER REVENUE

ENCOURAGING REVENUE PERFORMANCE

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 7

SLIDE 8 COST REDUCTION

FY11 FY13 FY15 Circulation 44%

42% 38%

Print Ads 41%

34% 28%

Digital 14%

21%

Direct From Consumer

1% 3% 5%

Source: dmg media

EVOLVING REVENUE PROFILE

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE EXCLUDES OTHER REVENUES SUCH AS CONTRACT PRINTING AND DISTRIBUTION SERVICES. FIGURES INCLUDE 50.8% OF ZOOPLA PROPERTY GROUP 8

29%

SLIDE 9 14 16 18 20 22 24 Source: dmg media / ABC

CIRCULATION REVENUE ROBUST

JAN 08 JULY 08 JAN 09 JULY 09 JAN 10 JULY 10 JAN 11 JULY 11 JAN 12 JULY 12 JAN 13 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE 280 260 240 220 200 180 160 140 120 100 90 60 DAILY MAIL MARKET SHARE CIRCULATION (%) REVENUE (£M’s) (MOVING ANNUAL TOTAL) JUNE 08 Price increase 45p – 50p JUNE 11 Price increase 50p – 55p FEB 13 Price increase 55p – 60p DAILY MAIL MARKET SHARE CIRCULATION (%) AND REVENUE (£M’s) (MOVING ANNUAL TOTAL) COST REDUCTION 9

SLIDE 10 Source: ABC

LOYAL READER BASE

MONTHLY VOLUME YoY CIRCULATION PERFORMANCE: DAILY MAIL VS. NAT PRESS MARKET PRICE RISE 55 60P FEB 13

2.4% 22.2% 22.0% 1.5%

% POINT YoY SHIFT MAIL VS. MARKET MAIL SHARE JAN 13 % POINT YoY SHIFT MAIL VS. MARKET LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE MAIL SHARE FEB 13 COST REDUCTION FEB 13 Price Increase 55p – 60p 10

SLIDE 11 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 11

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MOVED FROM

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 12

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DAYS TO

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 13

SLIDE 14 Source: dmg media

DAYS 800k MEMBERS

300k

MEMBERS ACTIVE DAILY

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 14

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SLIDE 16 Source: NRS

37%

OF UK POPULATION

EVERY WEEK

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 18

SLIDE 19 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION

LAUNCH OF INTEGRATED MARKETING SOLUTIONS

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SLIDE 20 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION

LAUNCH OF INTEGRATED MARKETING SOLUTIONS

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SLIDE 21 Source: ABC / dmg media January 2013, NRS October – December 2012

TOTAL REACH

36%

MORE THAN

230m

TOUCHPOINTS INCREASE YoY

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 21

+

SLIDE 22 Source: dmg media

31 MILLION

CUSTOMERS

22 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION

THE TRUST OF

SLIDE 23 Source: dmg media

RICH CUSTOMER DATA

NEWSPAPER READERSHIP Scotland on Sunday Occasional Sun Occasional Daily Mail

Name
Age
Date of Birth
Full Address
Telephone Number
Email Address
Marital Status
Income
Home ownership
Career

INTERESTS Film Competitions Fashion Showbiz Hearts football Breaking News THE MAIL In-paper promotions Online competitions with MailOnline Signed up to daily newsletter ONLINE BEHAVIOURAL DATA Occasional visitor to MailOnline and Metro Animal lover Interested in Puzzles Games SOCIAL DATA Facebook profile Twitter handle METRO In-paper competition Facebook competitions to win an iPhone 5 Metro Newsletter WOWCHER Bought £9.99 e-cigarettes Facebook competition to win an iPad TELETEXT HOLIDAYS Newsletter subscriber LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 23

SLIDE 24 Source: dmg media

LEVERAGING COMBINED DATA

REVENUE UP 69% YoY 52 MILLION UNIQUE BROWSERS

(UP 21% YoY)

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 24

SLIDE 25 Source: dmg media *EXCLUDING NEWSPRINT

COST SAVINGS

UNDERLYING COST BASE REDUCED BY £128m* COMPARED TO FY08 IMPROVING MARGIN £20m+ FIXED COSTS SAVINGS TO BE DELIVERED BY FY14 MORE FLEXIBLE COST BASE

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 25

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GROWTH DRIVERS AND INVESTMENT FOCUS

LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 26

plus

TABLET / MOBILE PRODUCTS

SLIDE 27 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 27

SLIDE 28 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE Source: comScore February 2013, dmg media

WOWCHER – THE NO.2 DAILY DEAL SITE IN THE UK

2.2 MILLION SUBSCRIBERS (+141% YoY) £1.1M MONTHLY NET REVENUE RUN RATE (+220% YoY)

COST REDUCTION 28

SLIDE 29 LEVERAGING PORTFOLIO STRENGTH INVESTMENT FOCUS ENCOURAGING REVENUE PERFORMANCE COST REDUCTION 29

SLIDE 30 Source: dmg media

SUMMARY

GREAT BRANDS GROWING CUSTOMER BASE HIGH GROWTH OPPORTUNITIES

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SLIDE 31 SUSAN AUBREY–COUND CEO eCommerce dmg media LINDA GRANT Managing Director Metro UK IAN HANSON Group Operations Director dmg media JAMES WELSH Group Finance Director dmg media GUY ZITTER Managing Director Mail Newspapers

Q&A PANEL

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