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

2. Introduction Liam P. Healy Group Chief Executive

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

4. Introduction Mexico South Africa Australia New Zealand Portugal UK Ireland 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

5. 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

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

7. 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 % Change 1998 Constant % Change € Currencies Actual Turnover 799m+10.9%+5.1% Operating Profit* 142m +3.6%-4.6% 19981997 % Change Operating Margin* 18.2%20.9% EPS** 24.56c25.36c-3.2% DPS 11.43c 9.90c+15.4% * continuing operations, excluding exceptionals ** fully diluted, excluding exceptionals and amortisation of goodwill

10. Overview Turnover by Business Outdoor Advertising4% Electronic Media4% Publishing92% Turnover by Market - 1998 Total : € 936m* * Including Group share of joint ventures and associates

11. Overview Operating Profit by Business Outdoor Advertising4% Electronic Media5% Publishing91% Operating Profit by Market - 1998 Total : € 145m * * Excluding exceptional items but including Group share of joint ventures and associates

12. Summary Balance Sheet Fixed Assets Intangible1,1211,167 Tangible225249 Financial141149 Working Capital289 Provisions & Long-Term Creditors(82)(17) Net Debt(568)(533) Total Shareholders’ Funds8651,024 Interest cover (EBITDA/Interest)3.5x4.4x 1998 € m 1997 € m

13. Summary Cash Flow Operating profit 90143 Restructuring costs549 144152 Share of Associates & JV’s Results(16)(9) Depreciation & Amortisation3433 EBITDA162176 Operating cash flow129144 Operating cash flow conversion (%)80%82% 1998 € m 1997 € m

14. Operating and Financial Performance

15. Australia Turnover251.6+9%-2% EBITDA57.5+8%-2% Operating Profit49.7+8%-2% 1998* 1997* Margin (%)19.8% 19.8% Exceptionals - - 1998* € m % Change Actual * 100% of APN % Change Constant Currencies

16. Australia Turnover Split * Publishing50% Electronic Media 27% Newspaper Turnover Advertising 79% Circulation 21% Outdoor23% *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. 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 Australia

19. New Zealand *excluding discontinued operations New Zealand Turnover208.4-2% -15% EBITDA58.6-1% -14% Operating Profit45.2-3% -16% 1998* 1997* Margin (%)21.7% 22.0% Exceptionals (1.1) (0.2) 1998* € m % Change Actual % Change Constant Currencies

20. New Zealand Turnover Split* Publishing93% CommercialPrinting23% Electronic Media 7% Newspaper Turnover Advertising 78% Circulation 22% *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. 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 New Zealand

23. United Kingdom *based on 100% of UK operations Turnover142.9 +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) 1998* € m % Change Actual % Change Constant Currencies

24. United Kingdom Turnover Split * Newspaper Turnover Advertising 68% Circulation 32% Electronic Media 1% Publishing 99% Magazines14% * 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 1998 - the first time in 10 years

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

27. Ireland Turnover 278.8 +12% EBITDA62.2 +7% Operating Profit56.7 +6% 1998 1997 Margin (%) 20.3% 21.4% Exceptionals (2.6)(5.2) % Change 1998 € m

28. Ireland Turnover Split* Publishing93% Electronic Media 7% Newspaper Turnover Advertising 56% Circulation 44% *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: CirculationChange –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

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 *excluding discontinued operations Turnover175.2+6% -6% EBITDA31.4+1% -10% Operating Profit27.7+1% -10% 1998* 1997* Margin (%)15.8% 16.6% Exceptionals (0.6) (0.8) 1998* € m % Change Actual % Change Constant Currencies

32. South Africa Turnover Split * Newspaper Turnover Advertising 73% Circulation 27% *including Group share of joint ventures and associates Publishing99% CommercialPrinting6% Electronic Media 1%

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. 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 South Africa

35. New Media Developments

36. 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. 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 New Media Developments

38. Strategy

39. 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. 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 AustraliaAustralia –Continued sound economy GDP growth forecasted at 2% - 3% for 1999GDP growth forecasted at 2% - 3% for 1999 Aus $ strengtheningAus $ strengthening –Organic growth across all divisions –Sydney 2000 - outdoor / radio –APN Digital –Strong start to 1999 –Forecasting 7th consecutive year of profit growth

44. Opportunities - Market by Market Outlook New ZealandNew Zealand –Business confidence increasing Recession overRecession over GDP growth forecasted at 2% for 1999GDP 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 KingdomUnited Kingdom –Economic contraction now appears unlikely GDP growth forecasted to show a marginal 0.5% - 0.75% increase for 1999GDP 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”Award-winning: “Editor of the Year” Latest ABCs confirm first yoy increase since 1996Latest ABCs confirm first yoy increase since 1996 Turn-around: on trackTurn-around: on track

46. Opportunities - Market by Market Outlook IrelandIreland –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-PHL/Cablelink -Switchcom-Switchcom –Buoyant readership / circulations

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

48. 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