Diapositive 1

1
2006 RESULTSFOR THE 6 MONTHS ENDED 30 JUNE 2006
September 29, 2006
2
Forward Looking Statement

• Some of the statements in this document are
  forward-looking.  Forward-looking statements
  include statements regarding the intent, belief
  and current expectations of the Company or its
  officers with respect to various matters.  When
  used in this document, the words expects,
  believes, anticipates, plans, may,
  will, should and similar expressions, and the
  negatives thereof, are intended to identify
  forward-looking statements.  Such statements are
  not promises or guarantees, and are subject to
  risks and uncertainties that could cause actual
  results to differ materially from those suggested
  by any such statements.  Those factors include,
  but are not limited to, risks or uncertainties
  described in our publicly filed documents.
•  
• These forward-looking statements speak only as of
  the date of this document.  We expressly disclaim
  any obligation or undertaking to release publicly
  any updates or revisions to any forward-looking
  statement contained herein to reflect any change
  in our expectations with regard thereto or any
  change in events, conditions or circumstances on
  which any forward-looking statement is based.

3
Agenda

• Introduction
  Pierre-François Catte
  Chief
  Executive Officer
• H1 2006 Financial Results Paul
  Guest
  Chief Financial Officer
• CEO Conclusion Pierre-François Catte
  
  Chief Executive Officer

4
A leader in Classified Advertising

• A leader in Classified Advertising, with 253
  print titles (178 excl. Kisokos) and 9 websites
  in 8 countries
• 5 million readers per week and 4.1 million Unique
  Monthly Visitors
• Our publications carry 80 million ads per year
• TME provides services and solutions to both
  professional and individual buyers and sellers
• Multiple media channels including Internet,
  print, telephone,SMS and direct mail
• 4800 employees (4700 excl. Kisokos) of which 2100
  are sales

5
Major Publications and Websites by country
Russia CIS
Ukraine
Russia CIS
Poland
Hungary
Russia CIS
Hungary
Croatia
Poland
Russia, Baltics CIS
Hungary
Croatia

• Publications
• Expressz,
• Kepes Auto, Ingatlan Haszonjarmu,
• Szuperinfo,
• Kisokos,
• Website
• Expressz.hu

• Publications
• Autobit,
• Autobiznes,
• Autofoto,
• Nieruchomosci,
• Websites
• Trader.pl,
• Kupsprzedaj.pl

• Publications
• Oglasnik
• Automoto
• Nekretnine
• Website
• Oglasnik.hr

• Publications
• Iz Ruk v Ruki,
• Rabota,
• Avto,
• Nedvizhimost,
• Websites
• Irr.ru,
• Job.ru,

6
Diversified Revenue Model driven
by B
to C Advertising H1 2006
Classified Advertising 33
Poland 3
Croatia 6
Moscow 33
Hungary 18
Internet 4
Circulation 12
Other 6
Russia Regions CIS 40
Display 45
7
H1 2006 Financial Results

• 97.3 million of Revenues (1)
• 3.6 revenue growth, of which 4.9 organic (1)
• Challenging market conditions in Hungary and
  Moscow
• Operation EBITDA of 27.5 at 28.3 margin (1)
• Group EBITDA of 24.3 million at 25.0 margin
  (1)
• Net Income of 4.8 million at 4.8 margin
• Free Cash Flow of 12.0 million at 12.0 of
  Revenues

(1) After elimination of Kisokos
8
Situation at end of H1

• Performance heavily impacted by market situation
  in Moscow and Hungary
• Beginning of recovery with doubling of organic
  growth rate between Q1 and Q2
• The management team has focused on stabilization
  and growth strategies in our current regions
• We see the improvement trend continue in Q3 / Q4
  and tracking to the guidance previously issued on
  growth and operation EBITDA (6 to 9 and 32
  34 respectively)

9
2006 Half Year Results
Paul Guest Chief Financial Officer
10
2006 Half Year Results Basis of Presentation

• Unaudited consolidated statement of operations
• Combined statements were presented for 2005
  results
• Review performed
• Pursuant to the Boards decision to sell the
  Kisokos directory business we have eliminated the
  Kisokos performance in our business analysis and
  this presentation
• Not eliminated from Half Year statements
• Will be discontinued in Full Year results

11
Operation Financials
12
Revenue Growth
(in million)
3.6
13
Organic Revenue Growth by Quarter
2006
14
Revenue Growth by Region
Poland 3
Croatia 6
Moscow 33
Hungary 18
Russia Regions CIS 40

• Excluding exchange rate impact and the results of
  acquisitions and disposals for the first 12 months

15
Revenue Growth by Segment
Classified Advertising 33
Display 45
Circulation 12
Other 6
Internet 4

• Excluding exchange rate impact and the results of
  acquisitions and disposals for the first 12 months

16
Operation EBITDA
17
Operation EBITDA Margin by Region
18
H1 Results Major influences on EBITDA

• Russia
• Fall in Real Estate transactions - market
  conditions
• Shift in mix between Moscow and lower margin
  Regions
• Higher commissions to display agencies in Moscow
• Shift to colour in Moscow
• Investment in marketing
• Moscow employment costs
• Hungary
• Revenue slowdown
• Operational challenges sales model
• Croatia
• Launch of new verticals - production costs

19
Operation Cost Structure
20
Summary Group Financials
21
Income Statement (US GAAP)

• Represents management fee charges for certain
  central costs incurred by Trader Classified Media
  in 2005. In February 2006, TME
• implemented its own corporate
  structures.

22
Income Tax Bridging H1 2005 and 2006
23
Income Tax Future Rate expected

• Redesign of the debt structure to be implemented
  before year-end
• Corporate costs to be recharged to profit-making
  operations to be implemented before year-end
• Internal Russian tax structure to be optimized
• Stock-based compensation expense to be reduced in
  future years

24
Cash Flow
25
Summarized Consolidated Balance Sheet as at 30
June 2006
26
Financial Structure
27
Debt Structure and Interest

• Facilities 250 m Senior Secured Credit
  Facilities
• 3 terms loans 140 m 5 Year Amortising
• Acquisition facility 85 m 5 Year Amortising
• Revolver 25 m Bullet
• 250 m
• Drawn 30.06.2006 143.4 m
• Margin
• Set at 2.50 during first 6 months then variable
  linked to net EBITDA leverage
• Effective rate 7.4
• Effective rate after commitment fee 8.4
• Commitment Fee
• 1.25 Acquisition Line

28
Debt Structure and Interest (continued)

• Covenants
• Standard Financial covenants, prepayment and
  security conditions
• Debt location and Interest
• 132.5 m of debt is located at holdco level
• Not attracting tax relief
• Debt Relocation / Restructure to obtain tax
  relief on interest paid
• Investigation into possible group restructuring
  and / or revision of credit facility underway

29
CEOs Conclusions
30
Conclusion

• A difficult first half driven by some market
  issues in two key markets
• A planned growth and EBITDA recovery in H2 based
  on a couple of already announced business
  initiatives verticals, online acceleration,
  restructuring of businesses, distribution
  improvements
• A low fixed cost structure allowing for financial
  stability
• A clear road map of financial and fiscal actions
  to improve the treatment of our debt
• A leverageable balance sheet with low debt to
  EBITDA ratio and low capital budget and asset
  requirements

31
H2 Perspective

• Maintain focus on current operations recovery and
  stabilisation Moscow and Hungary
• Acceleration of online and verticals investments
• Keep on upgrading management capability
• Increased focus on acquisitions
• Improved fiscal and debt management
• Maintained guidance of 6 9 growth and 32
  34 operations EBITDA for Full Year