ISEQ and Company Update, 26-Mar-2010

Irish Continental Group

• 2009 provided the most challenging trading conditions seen in Ireland for many decades. World trade suffered as a global recession took hold while Ireland experienced a reduction in economic activity significantly greater than many of our trading partners. This clearly had an impact on our passenger business but more significantly on our freight business which is inextricably linked to levels of internationally traded goods in North West Europe.
• The year was characterised by a very weak first six months as the effects of the credit crisis and weakening world trade took effect. The second half of 2009 showed some amelioration in trends with the year on year reduction in RoRo freight volume falling to -15% versus -22% in the first half, and, container freight volume decreasing to 19% year on year compared with a reduction of -32% in the first half. Passenger and cars carried in the second half rose 2% and 5% respectively compared with declines of 9% and 6% in the first half.
• Source: http://www.icg.ie/documents/2009/Final%20Results%202009.pdf

Independent News & Media

• Announces the disposal of The Independent and The Independent on Sunday to Independent Print Limited, a company controlled by the family of Mr. Alexander Lebedev. The consideration payable by is Stg£1
• Source: http://www.inmplc.com/news/uploads/INM_Statement_on_London_Independent_Disposal_25_Mar_10.pdf
• Group Revenue of €1,255.9 million reflects a comparatively resilient performance by the Group in extremely poor advertising markets
• Strong profit generation with Operating Profit* of €177.2 million and EBITDA* of €217.0 million - despite extremely challenging economic conditions
• 2009 Operating Margin* of 14.1% at top end of peer group, with Operating Costs down 9.1% (or €107.6 million) reflecting INM's effective cost management
• Market share advances achieved in advertising, circulations, online and readership in our primary markets, producing a strong foundation for enhanced operating leverage in 2010
• New 4½ year Bank Facilities signed in November, which substantially extended the Group's debt maturity profile from 2010 to 2014
• Refinancing successfully completed in December 2009 providing financial stability
• 2009 Asset Disposal Programme successfully raised approximately €150 million for Debt reduction, with lost EBITDA to the Group of only €15 million
• Significant reduction in Net Debt - down €367 million (before adverse currency movements)
• Exceptional Items of €145.8 million primarily relate to non-cash impairment charges in relation to INM's intangible assets but also include costs relating to operational restructuring within the Group and costs associated with the Refinancing process
• Source: http://www.inmplc.com/news/uploads/Preliminary_2009.pdf