Independent Newspapers, PLC 1998 Full Year Results 24th March 1999 All numbers in Euro

Liam P. Healy Group Chief Executive Introduction Liam P. Healy Group Chief Executive

Independent Newspapers, PLC United Kingdom Ireland Portugal Mexico Australia South Africa New Zealand

Introduction A broadly based international media group Interests in newspapers, magazines, outdoor advertising and electronic media No. 1 newspaper publisher in 3 of our 5 key country markets Publish 160 titles a week selling over 15 million copies Owner of the flagship Independent title in the UK Mexico South Africa Australia New Zealand Portugal UK Ireland

Introduction Largest regional newspaper, radio and outdoor operator in Australasia Joint owner (with TCI) of Ireland’s 2nd largest cable operator Currently bidding for Ireland’s largest cable operator (Cablelink) Strategic migration into new electronic media platforms Mexico South Africa Australia New Zealand Portugal UK Ireland

Independent Newspapers, PLC Earnings Per Share € (Fully diluted before exceptionals & goodwill amortisation) 5 Year C.A.G.R. Turnover +29% Operating Profit +31% Pre-tax Profit +21% Earnings Per Share +13% Dividends Per Share +16%

James J. Parkinson Group Finance Director Highlights James J. Parkinson Group Finance Director

Highlights Adverse currency movements Weakness in southern hemisphere (NZ and SA) economies Buoyant Irish economy Acquired 100% of flagship UK Independent titles Successful disposal of Sirocco All embracing restructuring to fundamentally lower Group cost base

Headline Numbers Turnover 799m +10.9% +5.1% % Change 1998 Constant % Change € Currencies Actual Turnover 799m +10.9% +5.1% Operating Profit* 142m +3.6% -4.6% 1998 1997 % Change Operating Margin* 18.2% 20.9% EPS** 24.56c 25.36c -3.2% DPS 11.43c 9.90c +15.4% * continuing operations, excluding exceptionals ** fully diluted, excluding exceptionals and amortisation of goodwill

Overview Turnover by Business Outdoor Advertising 4% Turnover by Market - 1998 Total : € 936m* Turnover by Business Outdoor Advertising 4% Electronic Media 4% Publishing 92% * Including Group share of joint ventures and associates

Operating Profit by Market - 1998 Overview Operating Profit by Market - 1998 Total : € 145m * Operating Profit by Business Outdoor Advertising 4% Electronic Media 5% Publishing 91% * Excluding exceptional items but including Group share of joint ventures and associates

Summary Balance Sheet 1998 € m 1997 € m Fixed Assets Intangible 1,121 1,167 Tangible 225 249 Financial 141 149 Working Capital 28 9 Provisions & Long-Term Creditors (82) (17) Net Debt (568) (533) Total Shareholders’ Funds 865 1,024 Interest cover (EBITDA/Interest) 3.5x 4.4x

Summary Cash Flow 1998 € m 1997 € m Operating profit 90 143 Restructuring costs 54 9 144 152 Share of Associates & JV’s Results (16) (9) Depreciation & Amortisation 34 33 EBITDA 162 176 Operating cash flow 129 144 Operating cash flow conversion (%) 80% 82%

Operating and Financial Performance

Australia % Change 1998* Constant Currencies € m % Change Actual Turnover 251.6 +9% -2% EBITDA 57.5 +8% -2% Operating Profit 49.7 +8% -2% 1998* 1997* Margin (%) 19.8% 19.8% Exceptionals - - * 100% of APN

Australia Turnover Split * Electronic Media 27% Publishing 50% Newspaper Turnover Circulation 21% Advertising 79% Outdoor 23% *100% of APN

Australia Australia’s largest regional daily newspaper publisher Over 65% of Australia’s outdoor advertising market Over 25% of the Australian radio market Solid EBIT growth in regional newspapers (6%) Double-digit EBIT growth in Outdoor (10%) and Broadcasting (15%) Broadcasting - significant market share gains

Australia Outdoor - 11 major contract wins in 1998 Launch of APN Digital Compound annual growth in PBT (15%), Net Profits (17%) and EPS (11%) since listing in 1992 Strongest growth in normalised EPS over last 5 years of any of the 8 largest media companies in Australia

New Zealand New Zealand % Change Constant Currencies 1998* % Change € m % Change Actual Turnover 208.4 -2% -15% EBITDA 58.6 -1% -14% Operating Profit 45.2 -3% -16% 1998* 1997* Margin (%) 21.7% 22.0% Exceptionals (1.1) (0.2) *excluding discontinued operations

*including Group share of joint ventures and associates New Zealand Turnover Split* Publishing 93% Newspaper Turnover Commercial Printing 23% Advertising 78% Circulation 22% Electronic Media 7% *including Group share of joint ventures and associates

New Zealand New Zealand’s largest publisher The New Zealand Herald - Auckland’s only daily paper - with 57% of total national newspaper market No. 1 radio operator: 53 radio stations with over 50% market share No. 1 regional publisher: 9 paid-for regional daily titles with a market share 58% No. 1 commercial printing group and major magazine publisher

New Zealand 1998 economic recession galvanised new management team to totally restructure group cost base Group headcount reduced in 1998 by more than 200 Launch of Herald’s real estate tabloid to drive market share Herald’s circulation stabilised with new initiatives Launch of searchable classified website 1999 - NZ economy showing signs of growth

United Kingdom % Change Constant Currencies 1998* % Change € m Actual Turnover 142.9 +1% +8.1% EBITDA (1.8) +80% +79% Operating Profit (3.1) +73% +71% 1998* 1997* Margin (%) -2.2% -8.1% Exceptionals (1.3) (0.4) *based on 100% of UK operations

* based on 100% of UK operations United Kingdom Turnover Split * Publishing 99% Newspaper Turnover Magazines 14% Advertising 68% Circulation 32% Electronic Media 1% * based on 100% of UK operations

United Kingdom Significant UK player in national press, regional press and magazines Flagship title for Group Control of UK Independent titles from March 1998 Major award winner in 1998 - the first time in 10 years

United Kingdom Circulation turnaround Independent losses significantly reduced Operating margins for regional press and magazines at top end of UK peer group Fast growing Internet site

Ireland Turnover 278.8 +12% EBITDA 62.2 +7% Operating Profit 56.7 +6% 1998 € m % Change Turnover 278.8 +12% EBITDA 62.2 +7% Operating Profit 56.7 +6% 1998 1997 Margin (%) 20.3% 21.4% Exceptionals (2.6) (5.2)

*including Group share of joint ventures and associates Ireland Turnover Split* Publishing 93% Newspaper Turnover Circulation 44% Advertising 56% Electronic Media 7% *including Group share of joint ventures and associates

Ireland Largest publisher in Ireland, 51% market share (ABC) No 1 in all 5 newspaper categories: Quality Daily, Popular Daily, Quality Sunday, Popular Sunday and Evening 1998 circulations: Circulation Change Irish Independent 162,716 1.6% The Star 90,263 1.5% Sunday Independent 309,913 (5.2%) Sunday World 308,754 0.52% Evening Herald 106,989 (4.9%) Over 53% advertising market share

Ireland No. 1 regional newspaper publisher, 11 titles with 39% market share Newspread - largest publishing distribution company IndoCom - directory/audiotext division, acquired Switchcom PHL subscribers over 150,000 and profitable Restructuring / new printing plant

South Africa % Change Constant Currencies 1998* % Change € m Actual Turnover 175.2 +6% -6% EBITDA 31.4 +1% -10% Operating Profit 27.7 +1% -10% 1998* 1997* Margin (%) 15.8% 16.6% Exceptionals (0.6) (0.8) *excluding discontinued operations

*including Group share of joint ventures and associates South Africa Turnover Split * Publishing 99% Newspaper Turnover Advertising 73% Commercial Printing 6% Circulation 27% Electronic Media 1% *including Group share of joint ventures and associates

South Africa Largest newspaper publisher in South Africa Own 14 titles dominating the 3 major urban centres 54% of total newspaper readership Substantial and successful new products have stabilised and grown circulations Business Report Personal Finance I-Technology

South Africa Operating margins increased from 8% in 1994 to 15.8% by 1998 Restructuring of editorial provides synergies Partnership with Conde Nast New media developments: In-Touch

New Media Developments

New Media Developments Independent Digital Consolidate and enhance Group’s new media platforms Leverage newspaper USPs into the electronic arena Exploring internet-related opportunities enhanced e-commerce internet-support call centres fulfilment telephony (GSM/ traditional/ TV)

New Media Developments International co-ordination of R & D, network and brand alliances In-Touch - South Africa PHL / TCI / IndoCom- Ireland ZD Net / Kompass - Australia Aim to be the No. 1 portal in our markets Media power to create internet brands

Strategy

Strategy Geographically diversified Tight focus on... 1. Core competencies Publishing Outdoor Electronic Media

Strategy 2. Market leadership positions 3. Cost reduction Primary content provider across diverse media platforms Deliver double-digit earnings growth

Opportunities and Outlook

Opportunities and Outlook Group performing to plan in Q1 1999 Economic conditions in New Zealand improving Restructuring On schedule Substantial, detailed and aggressive multi-country rationalisations 10% headcount reduction Annual cost savings of € 28m by 2001

Opportunities - Market by Market Outlook Australia Continued sound economy GDP growth forecasted at 2% - 3% for 1999 Aus $ strengthening Organic growth across all divisions Sydney 2000 - outdoor / radio APN Digital Strong start to 1999 Forecasting 7th consecutive year of profit growth

Opportunities - Market by Market Outlook New Zealand Business confidence increasing Recession over GDP growth forecasted at 2% for 1999 Solid start to 1999 Substantial headcount reduction (already 200+) to drive profit growth, particularly in 2nd half. America’s Cup / APEC Conference

Opportunities - Market by Market Outlook United Kingdom Economic contraction now appears unlikely GDP growth forecasted to show a marginal 0.5% - 0.75% increase for 1999 Good start to 1999 New media: “I-NEWS” Independent titles Award-winning: “Editor of the Year” Latest ABCs confirm first yoy increase since 1996 Turn-around: on track

Opportunities - Market by Market Outlook Ireland Continuing ‘Celtic Tiger’, with economic growth forecasted at 7% for 1999 Forecasting organic growth across all divisions Restructuring - towards new plant (Q4 2000) New media: - PHL/Cablelink - Switchcom Buoyant readership / circulations

Opportunities - Market by Market Outlook South Africa Offer to acquire 100% (March 1999) Economy stabilised GDP growth forecasted to be flat for 1999 and increasing to 3% forecast for 2001 Political stability June elections Significant restructuring initiatives across all 3 regions, on plan New media: Vodacom/ In-Touch developments

WE ARE COMMITTED TO DELIVERING DOUBLE-DIGIT EARNINGS GROWTH Conclusion WE ARE COMMITTED TO DELIVERING DOUBLE-DIGIT EARNINGS GROWTH Core operational strengths Restructuring Expansion Developments PHL / Cablelink Prudent new media strategy In-Touch/ Vodacom

Independent Newspapers, PLC