2002 interim results

2002interim results31 July 2002

TRINITY MIRROR plc.

Sir Victor Blank, Chairman

Philip Graf, Group Chief Executive

Joe Sinyor, Chief Executive, Newspapers

Presentation overview

TRINITY MIRROR plc. 2002 Interim Results SLIDE 2


Financial highlights

Turnover down 3.6% to £554.8m* (2001: £575.6m)*

Pre exceptional items• Operating profit down 4.6% to £95.9m* (2001: £100.5m)* • Profit before tax decreased 2.7% to £78.4m (2001:

£80.6m)• Earnings per share 18.4p (2001:19.4p)

Dividend per share 5.3p – same as 2001

* like-for-like-adjusted to exclude the results of Post Publication Ltd and Ethnic Media Group Ltd which were disposed of in June 2002


Profit improvements

Cost saving initiatives – target gross £32m in 2002• Continue to deliver on plan• £14.6m realised H1 2002

Incremental investment in Group titles – £25m in 2002• £8.7m invested in H1 2002


Consolidated net assets

Fixed assetsIntangible 1,849.8 1,866.9 2,017.7Other 398.1 407.6 408.4

2,247.9 2,274.5 2,426.1Net debt (703.9) (735.0) (771.8)Other net liabilities (136.1) (168.6) (142.5)

Net assets (excluding pension assets & liabilities)1,407.9 1,370.9 1,511.8Pension assets 16.7 28.8 57.0Pension liabilities (100.8) (54.7) (13.0)

Net assets 1,323.8 1,345.0 1,555.8

30th June 30th December * 1st July * £m 2002 2001 2001

* restated for adoption of FRS 17


Strong cash flow26 weeks to 30th June 2002

Net cash flow from operations 101.0 88.9

Net cash flow before acquisitions and disposals 49.8 38.3

Net cash inflow / (outflow) before financing 29.5 (4.9)

Reduction / (increase) in net debt 31.1 (3.6)

Profit interest cover (pre exceptionals) 4.5 times 3.9 times

£m 2002 2001

operations reviewoperations review

TRINITY MIRROR plc.

Regional Newspapers

UK and Scottish National Newspapers

Sports Newspapers


Regional Newspapers


Sports Newspapers

Regional Newspapers


NationalNewspapers£26.7m

Trinity Mirror plc


turnover £554.8m *26 weeks to 30 June 2002

Other£42.6m

NationalNewspapers£249.7m

RegionalNewspapers

£262.5m

profit £95.9m *26 weeks to 30 June 2002

Other£6.8m

RegionalNewspapers

£62.4m

* like-for-like


Biggest regional newspaper business in UK•240 titles

•13 operating companies

•4 regions in development


Strategic directionfour cornerstones of the regional strategy

Striving forexcellence

Driving performance

Leveraging the benefits of scale

Maintaining ambition for growth



“Biggest to Best” projects completedPerformance management system

Standardised advertising classification

Design of more efficient editorial, pre-press and advertising functions

Development of plans to regionalise in the North West and North East


“Biggest to Best” investments

£1m relaunch of the Birmingham Evening Mail

£1m in brand and readership research

£3.3m in central support and one-off costs

£90m investment in new presses approvedand underway

Regional newspapersCore(£m)


Margin: up from 24.4% to 24.6%

263.5 64.2 63.5258.1

01 02Revenue *

-1.1%-2.0%

01 02Profit *

* like-for-like


Regional division summary

“Biggest to best” change well underway

Active cost management

Strong performance outside London and South East and the Midlands

Investing for future

Regional Newspapers

UK National Newspapers

Sports Newspapers

UK National Newspapers


Mirror integratedmarketing strategy


change masthead

‘think again’ branding campaign

extended coverprice

reduction

targeted promotions

new sections

new columnists

productproduct

promotionpromotion

brandbrandpricingpricing

The Mirror's rebirth from trivial red-top to serious newspaper following the events of September 11 must go down as one of the most successful rebrands of recent times. The paper has since swept the board at press award ceremonies and seized the initiative from the previously rampant Sun

Marketing Magazine25th July 2002


Scope to improve loyalty

100% = total reader pool

44%

65%56%

35%

Daily Mirror The Sun

occasional readers

loyal readers

14,600 19,200

average issue readership

5,763 9,483


0

5

10

15

20

25

30

35

40

45

50

Dec89

Feb99

Mar99

J un99

Sep99

Oct99

Nov99

J an00

Feb99

Mar00

Apr00

May00

J un00

Aug00

Sep00

Oct00

J an01

Mar01

Apr01

May01

J ul01

Aug01

Sep01

Nov01

Dec01

Feb02

Mar02

Apr02

J un02

J ul02

The Mirror

The Sun

Daily Mail

Daily Express

Daily Star

Increasing awarenessBase : all tabloid readers (roll 13)(%)


The Sun,We love it

The MirrorThink Again

Start of price-cutting

Brand becoming clearerBase : all tabloid / mid-market readers


Pre

Post (April-June)

Has a strong personality

Tells me what’s really going on

A trendsetter

A serious newspaper

Reminds you that things in life aren’t so bad

Has a good sense of what’s right and wrong

Makes you feel part of what’s going on

Helps you understand how news affects you

Is thought provoking

Clever

Responsible

Firm

Thorough

A bit simple

Childish

Image

Needs

Personality

5

5

5

4

6

5

4

4

4

5

5

5

5

- 5

- 7

Difference

23

2512

14

16

14

15

17

18

18

16

8

13

17

20

12

16

20

17

19

21

19

19

21

22

23

22

18

22

25

UK national newspapers(£m)

Margin: down from 15.6% to 9.3%

205.4 32.1

18.1*

195.0

01 02

-43.6%-5.1%

01 02

* includes £6.5m incremental investment


Revenue Profit

Regional Newspapers

Scottish National Newspapers

Sports Newspapers

Scottish National Newspapers


Scottish national newspapers(£m)

Margin: down from 18.8% to 15.7%


57.5 10.8

8.6

54.7

01 02

-20.4%-4.9%

01 02Revenue Profit

Regional Newspapers


Sports Newspapers Sports Newspapers



Sports business


Sports newspapers(£m)

Margin: up from 21.1% to 32.0%


16.6 3.5

6.3

19.7

01 02

+80.0%+18.7%

01 02Revenue Profit


Summary

Excellent start on “From Biggest to Best”

Good cost control throughout

UK and Scottish Nationals strategies underway

Investing in businesses for long term


Outlook

Advertising environment remains uncertain

National advertising continues June trend

Regional advertising mixed

2002interim results

TRINITY MIRROR plc.

2002interim resultsappendicesfinancial performance interim 2002

TRINITY MIRROR plc.


Financial summary26 weeks to 30th June 2002

Group turnover 559.6581.4

Group operating profit 89.993.5

Pre exceptional items 96.3101.1Exceptional items (6.4)(7.6)

Share of results of associates 0.80.1

Total operating profit 97.793.6

Profit before taxation 72.173.0

Operating activities 104.1101.2Net interest payable (21.4)(25.9)Other finance income 2.75.3Exceptional items (6.3)(7.6)

Earnings per share (p)

Before digital media investment 19.5p23.0p

Digital media activities (1.1)p(3.6)p

Underlying EPS 18.4p19.4p

Exceptional items (1.5)p(1.8)p

Basic earnings per share 16.9p17.6p

£m 2002 2001 *

actual

* restated for FRS 17


Financial summary26 weeks to 30th June 2002

Group turnover 559.6581.4

Group operating profit 96.999.2

Pre exceptional items 103.3106.8Exceptional items (6.4)(7.6)

Share of results of associates 0.80.1

Total operating profit 97.799.3

Profit before taxation 76.473.4

Operating activities 104.1106.9Net interest payable (21.4)(25.9)Exceptional items (6.3)(7.6)

Earnings per share (p)

Before digital media investment 20.5p23.1p

Digital media activities (1.1)p(3.6)p

Underlying EPS 19.4p19.5p

Exceptional items (1.5)p(1.8)p

Basic earnings per share 17.9p17.7p

£m 2002 2001

pre FRS 17


Analysis of revenue by activity26 weeks to 30th June 2002

* includes Metro titles £4.4m (2001: £4.1m)

Regional newspapers * 267.3 273.4 (2.2) 262.5 267.6(1.9)

National newspapers 249.7 262.9 (5.0) 249.7 262.9(5.0)

Sports newspapers 19.7 16.6 18.7 19.7 16.618.7

Magazines and exhibitions 18.8 19.6 (4.1) 18.8 19.6(4.1)

Voice media 3.8 8.3 (54.2) 3.8 8.3(54.2)

Digital media 0.3 0.6 (50.0) 0.3 0.6(50.0)

Total turnover 559.6 581.4 (3.7) 554.8 575.6(3.6)

£m 2002 2001 change % 2002 2001 change %

like-for-likeactual


Analysis of revenue by type26 weeks to 30th June 2002

Circulation 192.0 194.6 (1.3) 191.1 193.6(1.3)

Advertising 316.6 330.6 (4.2) 312.9 326.0(4.0)

Other revenues 51.0 56.2 (9.3) 50.8 56.0(9.3)

Total turnover 559.6 581.4 (3.7) 554.8 575.6(3.6)

£m 2002 2001 change % 2002 2001 change %

actual like-for-like


Analysis of revenue by activity and type 26 weeks to 30th June 2002

Circulation 41.2 106.9 27.7 13.0 2.3 - - 191.1 34.4

Advertising 202.9 72.0 25.1 5.4 7.5 - - 312.9 56.4

Other 18.4 16.1 1.9 1.3 9.0 3.8 0.3 50.8 9.2

Total turnover 262.5 195.0 54.7 19.7 18.8 3.8 0.3 554.8

% of total 47.3% 35.1% 9.9% 3.6% 3.4% 0.7%

Nationals

Voice Digital %£m Regionals UK Scotland Sports Mags Media Media total of total

like-for-like


Analysis of revenueregional newspapers26 weeks to 30th June 2002

Circulation 41.2 41.3(0.2)

Advertising 202.9 207.5(2.2)

Display 58.7 59.5(1.3)

Classified 139.8 144.0(2.9)

Metro titles 4.4 4.010.0

Other 18.4 18.8(2.1)

262.5 267.6(1.9)

£m 2002 2001 change %

like-for-like


Regional newspapersAdvertising growth26 weeks to 30th June 2002

-16-14-12-10-8-6-4-202468

10

Display Sits vac Property Motors Other Total

revenues paid for volumes yield

Revenue £m 58.7 62.4 23.0 20.6 33.8 198.5Revenue % (1.5) (5.4) (3.4) (3.1) 2.7 (2.5)Volumes % (4.7) (14.1) (2.4) (0.2) (1.2) (3.7)Yield % 3.2 8.7 (1.0) (2.9) 3.9 1.2

like-for-likeexcludes Metro titles

% movement


Analysis of revenueUK national newspapers26 weeks to 30th June 2002

£m 2002 2001 change %

Circulation 106.9 109.2(2.1)

Advertising 72.0 80.2(10.2)

Display 40.1 47.5(15.6)

Classified 11.3 11.7(3.4)

Magazines/supplements/inserts/editions 20.6 21.0(1.9)

Other 16.1 16.00.6

195.0 205.4(5.1)


UK national newspapersadvertising volumes - daily market26 weeks to 30th June 2002

-6.1%

-2.1%

2.7%

-7.1%

3.8%

-2.3%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Mirror Sun Star Mail Express Market

January – June 2002(year on year growth %)


UK national newspapersadvertising volumes - Sunday market26 weeks to 30th June 2002

January – June 2002(year on year growth %)

-11.0%

-13.9%

-6.0%

7.7%

-8.2%

-12.5%

-20%

-15%

-10%

-5%

0%

5%

10%

S.Mirror S.People N.of World Mail Express Market


Dailies

Express19.4%

Mail on S.

40.0%

N.of World14.7%

S. People11.2%

S.Mirror14.7%

UK national newspapersadvertising market share (volumes)26 weeks to 30th June 2002

Sun18.7%

Mail24.7%

Express23.1%

Star14.4%

Mirror19.1%

Sundays


UK national newspapersdisplay advertising revenues26 weeks to 30th June 2002

-2.2%

10.3%

-33.4%-36.2%

-6.9%

-22.7%

-15.4%

-48.3%

-19.3%

-3.3%

-15.8%

-55%

-50%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Retail Motors Finance Travel Ent &Media

Mail Order fmcg Computers Telecoms Other Total

Revenue £m 14.5 4.9 3.0 1.8 3.3 2.0 1.5 2.3 2.7 4.1 40.1

(year on year growth %)


Analysis of revenuesScottish national newspapers26 weeks to 30th June 2002

£m 2002 2001 change %

Circulation 27.7 29.6(6.4)

Advertising 25.1 25.8(2.3)

Other 1.9 2.1(9.5)

54.7 57.5(4.9)


Group operating profit by activity26 weeks to 30th June 2002 (post FRS 17)

Regional newspapers 62.8 62.4 0.6 62.4 61.81.0

Established titles 63.9 64.8 (1.4) 63.5 64.2(1.1)

Metros (1.1) (2.4) 54.2 (1.1) (2.4)54.2




Voice media 0.9 2.4 (62.5) 0.9 2.4(62.5)

Digital media (4.4) (14.7) 70.1 (4.4) (14.7)70.1

Group operating profit * 96.3 101.1 (4.7) 95.9 100.5(4.6)

£m 2002 2001 change % 2002 2001 change %

* excludes exceptional items



Group operating profit by activity26 weeks to 30th June 2002 (post FRS 17)

62.2%26.6%

0.9%4.0%6.3%

Regionals

Nationals

Sports

Magazines & exhibitions

Voice Media

2002 2001

excludes digital media and exceptional itemslike-for-like


Group operating profit by activity26 weeks to 30th June 2002 (pre FRS 17)

Regional newspapers 66.3 65.3 1.5 65.9 64.71.9

Established titles 67.4 67.7 (0.4) 67.0 67.1(0.1)

Metros (1.1) (2.4) 54.2 (1.1) (2.4)54.2




Voice media 0.9 2.4 (62.5) 0.9 2.4(62.5)

Digital media (4.4) (14.7) 70.1 (4.4) (14.7)70.1

Group operating profit * 103.3 106.8 (3.3) 102.9 106.2(3.1)

£m 2002 2001 change % 2002 2001 change %

* excludes exceptional items



Operating costs *26 weeks to 30th June 2002

like-for-like* excludes exceptional items

£m 2002 2001 change %

Employment costs 169.0 169.6(0.4)

Newsprint 83.0 98.9(16.1)

Depreciation 21.2 20.81.9

Other 185.7 185.8(0.1)

458.9 475.1(3.4)

2002 interim results

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