Quality distribution, logistics and marketing services Preliminary results for the year ended 29 Sep

1
Quality distribution, logistics and marketing
services Preliminary results for the year
ended 29 September 2001

2
The Group - a quick reminder

• 4 Divisions
• News Wholesale
• Books
• Marketing Services
• Media Direct

3
The Divisions

• News Wholesale
• Local penetration distribution network
• Number 3 in the UK - 5 million deliveries per
  year
• 900 vehicles - 23 branches
• Cash generative
• Books
• Provision of shelf-ready books for academics /
  professional libraries
• Total service package

4
The Divisions

• Marketing Services
• Integrated marketing support service
• Travel industry - 65 of UK High St travel agent
  brochures
• Call centre facilities - response handling /
  database management
• 6,500 travel agents in UK
• Media Direct
• Inflight News
• Direct News delivery
• Sporting News supplies - 2,000 betting offices
  within M25

5
UK Presence
6
Headline results

• Pre-tax profits 9.3m (2000 11.6m)
• EPS 9.8p (200012.2p)
• Group turnover 647.3m (2000 622.5m)
• Dividend maintained
• Net debt cut to 39.1m (2000 46.3m)
• Impact of exceptional items
• pre-exceptional items and goodwill

7
Divisional Breakdown
8
Segmental Profits
9
Dawson News

• Core division
• Formerly Surridge Dawson
• Coped with demand spike post Sept 11
• Magazine sales down in year
• Turnover flattered by phonecards
• Efficiency drive coming through

10
Dawson Books

• Encouraging sales growth
• Strength of export market
• Major contract wins
• Southern University Purchasing Consortium
• London University Purchasing Consortium
• Re-awarded
• Welsh Higher Education Purchasing Consortium

11
Dawson Books

• US Recovery
• Impact of
• enterBooks.com enterProfile.com
• Repeat customers
• New purpose built facility
• Increased capacity for future growth

12
Dawson Marketing Services

• Increase in travel brochure distribution
• Marketing spend cut backs by clients
• Good utilisation of Dawson News network - over
  40 of deliveries
• Cost base restructured

13
Dawson Media Direct

• Continued growth through the year
• Brussels operation opened
• Dawson News Direct - focus on profitable
  businesses
• Overseas subscription markets
• Sporting News Supplies

14
Key achievements

• Tight control over News distribution operating
  costs
• Good progress at Books
• Successful opening of Inflight Brussels
• All divisions well positioned for growth
• Re-engineered Marketing Services

15
Turnover
16
Operating Profits
17
Profits pre Goodwill Exceptionals
18
Pre-Tax Profits
19
Exceptional Items
20
Cash Flows
21
Current Trading

• Newspaper sales stable
• Magazines encouraging
• Continued efficiencies
• Books growth continues
• Disruption in the travel market
• Formalisation of bank facilities

22
Goals and priorities for 2002

• News
• Cost Control
• Centralisation
• Books
• European Opportunities
• E-trading
• Media Direct
• Europe
• No frills airlines
• Marketing Services
• Build core business
• Expand Dawson Distribution

23
Prospects

• Core business remains solid
• Recovery of Marketing Services
• European Expansion for Books and Media Direct