Jim Bilton Managing Director

Magazines Ireland I Publishing 360 (April 2015) I Slide 2 Two questions to keep you awake at night

Magazines Ireland I Publishing 360 (April 2015) I Slide 3 How much is your company worth?......and are you the best person to run it? Two questions to keep you awake at night

1.Content & brands 2.Distribution 3.Technology 4.Business models 5.Leadership & structure 5 criteria for valuing a media company

Magazines Ireland I Publishing 360 (April 2015) I Slide 5 Publishing Futures 2015

The change process Just started Deep into it Nearing the end Constant change

The change process Just started Deep into it Nearing the end Constant change % of Companies 21%46%7%26%

The change process: confidence levels Just started Deep into it Nearing the end Constant change

The change process: turnover growth Just started Deep into it Nearing the end Constant change

The change process: profitability Just started Deep into it Nearing the end Constant change Percent of companies in profit 63%89%83%90% Average profit margin 12% 14%13%

The change process: driving it

The change process: resourcing it

Current critical action priorities: 1 to 10 scores Developing existing revenues5.9 Business streamlining5.2 Developing new revenues4.2

Current critical action priorities: 1 to 10 scores

Magazines Ireland I Publishing 360 (April 2015) I Slide 15 The overall picture The Digital Magazine Marketplace

Magazines Ireland I Publishing 360 (April 2015) I Slide 16 The overall picture The Digital Magazine Marketplace An industry facing ongoing challenges, but..... Robust key indicators Growing confidence Increasing pragmatism

Magazines Ireland I Publishing 360 (April 2015) I Slide 17 The overall picture The Digital Magazine Marketplace Some subtle differences from past years..... More focus on internal issues Fewer “big themes” More awareness of competitors More focus on what works now A growing debate about scale

Magazines Ireland I Publishing 360 (April 2015) I Slide 18 The overall picture The Digital Magazine Marketplace Three big themes..... Visibility Control Quality

Magazines Ireland I Publishing 360 (April 2015) I Slide 19 “We’ve made our best assessment of what we think we need to do. We’ve invested in that and we’re beginning to see a return on that investment...not as fast or as big as we’d like. But we know that this is a long game. We’re investing in quality. And quality will win...it has to!”

Magazines Ireland I Publishing 360 (April 2015) I Slide 20 Inside looking out Filling in the media company scorecard Outside looking in

The media company scorecard Criterion Consumer Score B2B Score Content & brands ?? Distribution ?? Technology ?? Business models ?? Leadership & structure ??

The media company scorecard Criterion Consumer Score B2B Score Content & brands ?? Distribution ?? Technology ?? Business models ?? Leadership & structure ??

Content & brand issues Not just “content”, but the wrapper of brand-assurance Adding value for end-users and advertisers Adding real value in an increasingly free world? Quality & consistency across all platforms Models to monetise Internal resources Staff (numbers + time + skills) Technology platforms + know-how Internal politics + company culture More competition everywhere Direct + brand owners + broad-based

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution ?? Technology ?? Business models ?? Leadership & structure ??

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution ?? Technology ?? Business models ?? Leadership & structure ??

Distribution issues Just as important as content Reach + frequency + profile + engagement And the metrics to prove them all The shift from physical to digital supply chains From controlling set processes to managing a flexible toolkit More partnerships in a social media world Knowing when to walk away A completely holistic view Physical + digital. Retail + subs. Are the skills & knowledge in the right place? The danger of losing old skills & disciplines Direct marketing / key account management / RoI The big issue of “discoverability” Scale + profile in a noisy world

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology ?? Business models ?? Leadership & structure ??

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology ?? Business models ?? Leadership & structure ??

Magazines Ireland I Publishing 360 (April 2015) I Slide 29 “It’s IT that really keeps me awake at night. Not just CMS and the delivery of content, but everything else that has a tech platform – database, insight, seamless transactions, content automation, marketing automation – the list seems endless. How can we compete with Amazon, Google and the rest when IT is simply not a core expertise we have? And it’s not just about “doing” IT. It’s even more basic than that – it’s simply knowing what’s possible.”

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models ?? Leadership & structure ??

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models ?? Leadership & structure ??

Magazines Ireland I Publishing 360 (April 2015) I Slide 32 Print-digital revenue map: B2B

Magazines Ireland I Publishing 360 (April 2015) I Slide 33 Print-digital revenue map: Consumer / B2B

Magazines Ireland I Publishing 360 (April 2015) I Slide 34 Print-digital revenue map: Consumer

Magazines Ireland I Publishing 360 (April 2015) I Slide 35 Print-digital revenue map: Consumer

Magazines Ireland I Publishing 360 (April 2015) I Slide 36 Print-digital revenue map: Consumer

Magazines Ireland I Publishing 360 (April 2015) I Slide 37 Print-digital revenue map: Consumer

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models 89 Leadership & structure ??

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models 89 Leadership & structure ??

Leadership & structure issues How good is the senior team? As individuals & as a team (empowered + in the right place) Knowing what they do not know & filling the gaps Vision + enthusiasm + drive + openness Company skills, knowledge & experience Specialists versus generalists Hiring in the new versus retraining the old The structure of the organisation Reporting / accountability versus agility / knowledge share The culture of the organisation Not being afraid to fail The danger of losing old skills & experience Making bold decisions & taking the long view

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models 89 Leadership & structure 67

The media company scorecard Criterion Consumer Score B2B Score Content & brands 79 Distribution 57 Technology 46 Business models 89 Leadership & structure 67

Start-ups versus transformers CriterionStart-ups Trans- formers Content & brands  Distribution ?? Technology  x Business Models x  Leadership & structure  ?

Magazines Ireland I Publishing 360 (April 2015) I Slide 44 How much is your company worth?......and are you the best person to run it? Two questions to keep you awake at night

Jim Bilton Managing Director