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

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

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

4. 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

5. 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

6. 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%

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

8. 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

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

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

11. Operating Profit by Market - 1998
Overview
Operating Profit by Market
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

12. Summary Balance Sheet 1998 € m 1997 € m
Fixed Assets Intangible 1,121 1,167 Tangible Financial
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

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

14. Operating and Financial Performance

15. Australia % Change 1998* Constant Currencies € m % Change Actual
Turnover % -2%
EBITDA % -2%
Operating Profit % -2%
1998* *
Margin (%) 19.8% %
Exceptionals
* 100% of APN

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

17. 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

18. 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

19. New Zealand New Zealand % Change Constant Currencies 1998* % Change
€ m
% Change
Actual
Turnover % %
EBITDA % %
Operating Profit % %
1998* *
Margin (%) 21.7% %
Exceptionals (1.1) (0.2)
*excluding discontinued operations

20. *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

21. 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

22. 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
NZ economy showing signs of growth

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

24. * 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

25. 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 the first time in 10 years

26. 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

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

28. *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

29. 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 , %
The Star , %
Sunday Independent ,913 (5.2%)
Sunday World , %
Evening Herald ,989 (4.9%)
Over 53% advertising market share

30. 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

31. South Africa % Change Constant Currencies 1998* % Change € m Actual
Turnover % %
EBITDA % %
Operating Profit % %
1998* *
Margin (%) 15.8% %
Exceptionals (0.6) (0.8)
*excluding discontinued operations

32. *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

33. 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

34. 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

35. New Media Developments

36. 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)

37. 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

38. Strategy

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

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

41. Opportunities and Outlook

42. 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

43. 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 outdoor / radio
APN Digital
Strong start to 1999
Forecasting 7th consecutive year of profit growth

44. 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

45. Opportunities - Market by Market Outlook
United Kingdom
Economic contraction now appears unlikely
GDP growth forecasted to show a marginal 0.5% % 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

46. 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

47. 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

48. 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

49. Independent Newspapers, PLC