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Publishing Landscape

2010Sara Wilde

Regional Managing DirectorTrinity Mirror North West & Wales

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Sara Wilde• Regional Managing Director Trinity Mirror North West & Wales• http://www.trinitymirror.com/our-portfolio/regionals/north-west/ • 1st presented 25 March 2010 at the

1st How-Do/Vision+Media Northwest England’s Creative Industries AGM

• http://www.visionandmedia.co.uk/ www.how-do.co.uk

Set up

• What we know

• What we don’t know

• Opportunities ahead

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What we know – The How Do and Business Link insight

• Publishing in UK is worth £97 billion

• Performance in the North West

– 10% of this - £9.5 billion

– generated by 8.4% of the UK’s firms

• Of the 463 publishing firms in the North West over half (57%) employ less than 5 staff.

• In line with the UK profile over half also have a turnover of less than £400k

• Yet region is impressively home to 12% of UK’s £40M+ publishing business

• Trinity Mirror being the biggest regional publisher in the North West and UK

What has happened to the sector recently?

• Advertising revenues across nearly all media hit by structural shifts in spend and cyclical downturn

• Regional print advertising been heavily affected by cyclical drops particularly in jobs, homes and cars

• Significant re-structuring of portfolios and operating models

• Radical review of where the money and the consumer is going

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Steepest downturn in advertising expenditure in recent memory

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-25.0%

-15.6% -14.5%

-7.8%

4.6%

-37.3%

-16.1%

-20.4%-22.0%

PressClassified

Directories Outdoor PressDisplay

TV Radio Direct Mail Cinema Internet

Total advertising market at -16.6%

Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.

With the majority of media affected by the economic downturn

Advertising revenues by media

% y/y, H1 2009

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Digital not immune from the effects of the recession

215.9162.2

531.3

287.0 277.7

762.3

333.9 348.2

981.4

316.5 335.8

1097.6

Display Classifieds Paid for search

H1 2006 H1 2007 H1 2008 H1 2009

-5.2% -3.6%

+11.8%

Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC

Digital revenues by type

£m, H12007-2009

So where are we now?

• Economic outlook for 2010/ 2011 is cautious but stable

• Multi-platform and multi-media remains the journey we are on

• Still massive challenges around forward revenue and business models

• Despite this our business remains healthy and appetite for forward growth still present

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What else do we know?

• Overall audiences have not declined as fast as revenue

• 40 million people in the UK read a local paper every week

• 37 million people in the UK use a local website every month

• TMNW&W portfolio reaches 1.8m people and penetration is up to 70%

• Our overall portfolio reaches more people than ever

• So while consumer habits and preferences are changing our reach and relevance can remain strong

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What is key to us now?

• Transform - our business in line with advertiser and consumer expectations

• Develop – our great brands Liverpool Echo, MEN, Daily Post

• Innovate – to create new models and brands where opportunities exist

• Engage – to retain maximum level of readers and users with targeted content

• Get smart - more targeted advertising, priced in line with value and response

• Get close - knowledge and insight will help widen what we offer consumers

• Get a move on – disintermediation, fragmentation both opportunity and challenge

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Trinity Mirror North West & Wales approach

• Transformation of business fit for multi-platform delivery

• Consolidate to achieve economies of scale

• Re-vitalise iconic brands and grow core propositions on and offline

• Build and engage with audiences across all platforms

• Diversify – grow or acquire revenues in new services or related areas

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Organic Diversification- Sport Media

• Organic growth of new revenues – turning over £3.5m per annum

• Providing high quality services – programmes and magazines

• Liverpool Football Club – new contract to 2013

• New book contract with Chelsea FC

• Expanding the sport franchise and skills into new markets

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Diversification – new products

• Bookazines with the Daily Mirror. Over 200,000 sold in 2009. More in 2010.

• From Michael Jackson to Georgie Best and steamy soaps

• Biographies, heritage and fashion

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• TM has built national positions in jobs and property online markets

• TMNW acquired Rippleffect a web development and e-marketing business

• Rippleffect brings a new customer base, digital expertise and sport affinity

Diversification - acquisitions

Further diversification

• New products, new payment models • new mobile models for content, (particularly for tablets) may help enrich our products

and drive engagement• possibility of driving loyalty and premium subscriptions• publishers will be able to charge for unique, high value content but this isn't a primary

focus for our regional sites • mobile revenue opportunities will emerge and mature

• No single elixir• we are intent on transformation but do not envisage closing printing presses on the

back of e-books or mobile subscriptions • Supporting an ever greater range of experiences (feature phone, smartphone, tablet,

desktop) will be challenging but important to do • is clear that we must embrace long tail of new generation revenues in order to meet

market needs • partnerships will be important to our future

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Footnotes

• Facebook traffic overtook Google last week in United States

• People will always want to know things and to learn and curiosity never dies

• Great content will always find an audience

• People will pay for really good stuff

• Businesses still need to “communicate ” with consumers no matter how fragmented the market

• Reach and relevance remain key and give us a strong platform for the future

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Share, but please attribute

Sara Wilde• Regional Managing Director Trinity Mirror North West & Wales• http://www.trinitymirror.com/our-portfolio/regionals/north-west/ • 1st presented 25 March 2010 at the 1st How-Do/Vision+Media Northwest England’s

Creative Industries AGM

• http://www.visionandmedia.co.uk/ www.how-do.co.uk