Star Conference London 2007 3th October Business Model Results as of 30th June 2007 Development Strategic Plan 1 / 26 Contents
Business Model 2 / 26 Business Model
Business Model DMAIL GROUP S.p.A. Listed investment holding Business divisions: Media Commerce Local Media Business Operations: Finance and Control Investor Relations Strategy and Business Development 3 / 26 Business Model
Business Model MEDIA COMMERCE AREA Multiple and diverse products directly sold to consumers through multiple media and routes to market. A unique business achieved through unique systems, logistics and fulfilment, delivering a market leading proposition to it s customers. Useful, Unusual Gifts Small Electrical Appliances Electronics and Technology Off-line Digital Media Outsourcing for Companies 4 / 26 Business Model
Business Model: Media Commerce Area Brands B2B B2C B2C Markets Italy EU Worldwide Channels Media Mail order Internet Call centre Direct shops Agents network Mail order Internet Call centre Direct shops Platform Management of channels and media, content management Direct marketing, CRM and database management Logistics, order fulfilment and distribution Purchases, sales and financial services Outsourcing Products - Useful and usual gift ideas - Small electrical appliances - Electronics and technology - Off-line digital media Made in Italy Merchandising 5 / 26 Business Model
Business Model Media Commerce Area The Partnerships Readers Offer RCS Media Group S.p.A. - Corriere della Sera, Gazzetta dello Sport, Oggi, Novella 2000, Visto, Io Cucino Il Sole 24 ORE S.p.A. - Il Sole 24 ORE, Radio 24, Shopping 24 Poligrafici Editoriale S.p.A. - Il Giorno, Il Resto del Carlino, La Nazione Caltagirone Editore S.p.A. - Il Messaggero, Il Mattino, Il Gazzettino, Corriere Adriatico, Nuovo Quotidiano di Puglia Cairo Communication S.p.A. - Dipiù, Dipiù TV Gruner+Jahr Mondadori S.p.A.- Focus, Focus Junior, Top Girl Editoriale Perrone S.p.A. - Il Secolo XIX Società Europea di Edizioni S.p.A. - Il Giornale Società Editrice Siciliana S.p.A. - Gazzetta del Sud S.I.E. S.p.A. - L Adige Editrice Quadratum S.p.A. - Intimità Maxim Italia S.p.A. - Maxim Outsourcing Arvato services Bertelsmann Group Ferrari S.p.A. 6 / 26 Business Model
Business Model MEDIA COMMERCE AREA THE FIGURES 8,200,000 Internet Access 950,000 Orders 650,000 Shipments 19,000,000 Catalogues 1,700,000 Customers 7,400,000 Prospects DB Annual figures updated in August 2007 7 / 26 Business Model
Business Model LOCAL MEDIA AREA Publishing activities are managed by the Dmedia Group, which controls Netweek, the leading local media circuit in Northern Italy. The Netweek circuit comprises 29 local editions and the number one regional weekly in terms of circulation: Milano Metropoli Lombardia in Europa. Dmedia Group publishes the site Netweek.it, a local news portal. 8 / 26 Business Model
Business Model LOCAL MEDIA AREA 100,000 Visitors per day on internet sites 29 Local editions 312,000 Copies per week 281,500 Weekly circulation 2,000,000 Readers per week > 800 Municipalities covered in terms of content > 700 News/day 55,000 Internet research/day > 13,000 Annual advertising users Figures updated in September 2007 9 / 26 Business Model
LOCAL MEDIA AREA THE NEWSPAPERS Lombardy MONZA CIRCUIT Giornale di Monza, Giornale di Vimercate, Giornale di Carate, Giornale di Seregno, Giornale di Desio EAST/SOUTH MILAN CIRCUIT Gazzetta della Martesana, Gazzetta dell Adda, Il Sabato News del Sud Milano WEST MILAN Settegiorni Rho, Settegiorni - Magenta e Parabiago, Settegiorni Bollate Paderno Dugnano COMO Giornale di Como*, Giornale di Erba, Giornale di Cantù BERGAMO CIRCUIT Bergamo Sette*, Giornale di Treviglio VARESE CIRCUT La settimana di Saronno e Tradate, Occhio Busto Arsizio, Ticino News Gallarate* SONDRIO CIRCUIT Centro Valle Giornale di Sondrio Piedmont Business Model Lombardia in Europa** LECCO CIRCUIT Giornale di Lecco, Gironale di Merate NOVARA CIRCUIT Novara oggi (with Arona edition), Occhio Novara*, Ticino News Trecate* TORINO CIRCUIT Il Canavese, La Nuova Periferia Chiavasso, La Nuova Periferia Settimo Torinese Circulation 135,000 25,000 29,500 18,500 19,000 29,000 29,000 36,000 13,000 48,000 34,500 Copies 160,000 30,000 34,000 22,000 22,000 31,000 31,000 38,000 16,000 50,000 38,000 Total Netweek Circuit 281,500 312,000 *Free Press - **Attached to all the for-pay newspapers in Lombardy Figures updated in September 2007 10 / 26 Business Model
Business Model LOCAL MEDIA AREA www.netweek.it 29 Local Editions The Editorial Supplements The Regional Weekly 11 / 26 Business Model
Business Model LOCAL MEDIA AREA TERRITORY COVERED 12 / 26 Business Model
Dmail Group: Company Structure 13 / 26 Dmail Group today
Dmail Group: Shareholders * Shareholders Agreement (37.33 %) Expires June 30th, 2010 14 / 26 Dmail Group today
Results as of 30 June 2007 15 / 26 Results as of 30 June 2007
Profit & Loss Account of Dmail Group S.p.A. Q2 07 Q2 06 Change 30/06/07 30/06/06 Change Revenues 151 151 302 302 Other revenues 4 8 (4) 4 8 (4) Total revenues and other operating income 155 8 147 307 8 299 Purchase costs (3) (3) (7) (8) 1 Service costs (428) (392) (37) (734) (695) (40) Personnel costs (110) (89) (21) (231) (104) (127) Other operating costs (30) (28) (2) (56) (59) 3 Gross operating profit (417) (504) 88 (721) (857) 136 Amortisation, depreciation and writedowns (17) (14) (3) (34) (26) (8) Net operating profit (434) (519) 85 (755) (883) 128 Net financial income (costs) 589 (18) 607 399 (12) 411 Profit before tax 155 (536) 691 (357) (895) 538 16 / 26 Results as of 30 June 2007
Profit & Loss Account / Media Commerce Area Q2 07 Q2 06 Change Change % 30/06/07 30/06/06 Change Change % Revenues 19,490 10,992 8,498 77% 37,780 19,128 18,652 98% Other revenues 956 676 280 41% 1,759 1,206 553 46% Total revenues and other operating income 20,446 11,668 8,779 75% 39,539 20,334 19,205 94% Purchase costs (11,708) (4,671) (7,037) 151% (22,356) (8,501) (13,855) 163% Gross Contribution 8,738 6,996 1,742 25% 17,183 11,833 5,350 45% Service costs (5,119) (3,817) (1,302) 34% (10,383) (6,626) (3,757) 57% Personnel costs (1,694) (1,379) (315) 23% (3,349) (2,206) (1,143) 52% Other operating costs (434) (439) 5-1% (858) (671) (187) 28% Gross operating profit 1,491 1,361 130 10% 2,593 2,331 262 11% Amortisation and depreciation (615) (485) (130) 27% (1,181) (667) (514) 77% Net operating profit 876 876 (1) 1,412 1,664 (252) -15% Net financial income (costs) (65) (164) 99-60% (141) (179) 38-21% Profit before tax 811 712 98 14% 1,272 1,485 (214) -14% 17 / 26 Results as of 30 June 2007
Profit & Loss Account / Local Media Area Q2 07 Q2 06 Change Change % 30/06/07 30/06/06 Change Change % Revenues 5,838 5,095 744 15% 11,098 9,770 1,329 14% Other revenues 215 229 (14) -6% 433 419 14 3% Total revenues and other operating income 6,053 5,323 730 14% 11,531 10,189 1,343 13% Purchase costs (664) (553) (112) 20% (1,288) (1,032) (256) 25% Service costs (3,861) (3,310) (550) 17% (7,149) (6,232) (916) 15% Personnel costs (840) (718) (123) 17% (1,658) (1,448) (210) 15% Other operating costs (118) (194) 76-39% (255) (300) 45-15% Gross operating profit 570 549 21 4% 1,182 1,176 5 Amortisation, depreciation and write-backs (225) (226) 1-1% (470) (432) (38) 9% Net operating profit 345 323 22 7% 712 745 (33) -4% Net financial income (costs) (72) (128) 55-43% (120) (220) 100-45% Profit before tax 273 195 77 40% 592 525 67 13% 18 / 26 Results as of 30 June 2007
Consolidated P&L Account DMail Group Q2 07 Q2 06 Change Change % 30/06/07 30/06/06 Change Change % Revenues 25,256 16,490 8,766 53% 48,752 28,814 19,937 69% Other revenues 1,175 932 243 26% 2,196 1,635 561 34% Total revenues and other operating income 26,432 17,422 9,010 52% 50,948 30,450 20,498 67% Purchase costs (12,373) (5,660) (6,712) 119% (23,638) (9,541) (14,098) 148% Gross Contribution 14,059 11,762 2,297 20% 27,310 20,909 6,400 31% Service costs (9,161) (7,537) (1,624) 22% (17,855) (13,499) (4,356) 32% Personnel costs (2,644) (2,185) (459) 21% (5,237) (3,757) (1,481) 39% Other operating costs (610) (673) 63-9% (1,164) (1,042) (121) 12% Gross operating profit 1,645 1,367 278 20% 3,054 2,611 442 17% Amortisation, depreciation and write-downs (858) (756) (102) 13% (1,685) (1,155) (530) 46% Net operating profit 787 611 176 29% 1,369 1,456 (88) -6% Net financial income (costs) (199) (309) 110-36% (512) (411) (101) 25% Profit before tax 588 302 286 95% 857 1,045 (189) -18% 19 / 26 Results as of 30 June 2007
Revenues Growth H1 2007 Over H1 2004 H1 04 H2 04 H1 05 H2 05 H1 06 H2 06 H1 07 % Change H1 07/H1 04 Revenues and other operating income 22,448 22,731 24,827 24,653 30,450 45,368 50,948 127% 60.000 45.000 30.000 15.000 0 H1 '04 H2 '04 H1 '05 H2 '05 H1 '06 H2 '06 H1 '07 20 / 26 Revenues
Net Financial Position 30/06/2007 31/03/2007 Diff. Medium/long-term bank borrowings (10,584) (10,662) 78 Short-term bank borrowings (8,336) (3,296) (5,040) Indebtedness (18,920) (13,958) (4,962) Medium and long-term debt structure Own shares (sold in July 2007 cash in 1.7 million - profit 370 thousands) Property assets Dividends policy Working capital for growth Acquisitions 21 / 26 Results as of 30 June 2007
Dmail Group: Stock Performance 01/01/2007 13/09/2007 Change Price 10.351 11.846 14,4% Average volumes 34,583 74,958 116,7% No. of shares 7,650,000 7,650,000 Capitalisation 79.2 m 90.6 m 14,4% 22 / 26 Dmail Group today
Development Strategic Plan 23 / 26 Development Strategic Plan
2007 Plan MEDIA COMMERCE AREA Integration, synergies and organic growth International markets Product catalogue Multiple routes to market Partnerships Acquisitions 24 / 26 Development Strategic Plan
2007 Plan LOCAL MEDIA AREA Local area coverage Multimedia Verticalisation of range of products Acquisitions 25 / 26 Development Strategic Plan
Q&A CONTACTS: Adrio Maria de Carolis Chairman and Investor Relations +39.02.5522941 adrio.decarolis@dmailgroup.it 26 / 26 Q&A and Contacts