Thomaz Souto CorrêaVice Chairman

Abril Group

Opportunities for Cross-border publishing:

New Frontiers

26 > 28 May 2003

34th FIPP World Magazine Congress

Carrousel du Louvre - Paris

BRAZIL:

AN OVERVIEW

BRAZIL, THE CENTER OF THE WORLD !

BRAZIL: AN OVERVIEW

A 176 MM people, 39 MM readers market;

Indicators like GDP and GDP per capita, when measured in dollars, do not reflect the deep changes that affected the country in the past decade. The “Real” was devaluated in 1999 and today is 3 “Reais” to 1 Dollar.

The 90’s — significant socio-economic changes: Inflation dropped from 1,600% to less than 10% per year; Above average growth of socio-economic segments B and C; Number of students in primary and secondary schools rose 50%; Illiteracy levels were reduced by more than 40%;

These changes were followed by an explosion in the availability of services and technology in the past 5 years.

Highlights

BRAZIL, AN OVERVIEW

SOCIAL ECONOMIC INDICATORS

144

164 166176

1990 1999 2000 2002

Source: IBGE

Population - Million Inhabitants

BRAZIL, AN OVERVIEW

SOCIAL ECONOMIC INDICATORS

75

78

80

1990 1995 2002

Source: IBGE

Urban Population - % of Total

NATIONAL POPULATION

The South and Southeastern

Regions represent

74% of total

magazine sales

Total Population: 176.128.497 Total Readers: 38.971.180

Source: IBGEMarplan

IVC

BRAZIL, AN OVERVIEW

469,3

543,0 536,5

602,2

510,3

0,00

0,85

1,791,96

2,32

1990 1994 1999 2000 2001

GDP (US$ Billion) Exchange rate (R$ / US$)

Source: Brazil Central BankNote: 1990 currency converted to Reais

GDP - US$ Billion

BRAZIL, AN OVERVIEW

3,13,4

3,1

3,5

2,9

1990 1994 1999 2000 2001

Source: Brazil Central Bank

Per Capita Income - US$ Thousand

BRAZIL, AN OVERVIEW

8,9 6,0 7,67 12,522,4

1990 1995 1999 2000 2001 2002

Source: IBGE

Inflation - % Per Year1621,0

BRAZIL, AN OVERVIEW

4,64,54,64,64,64,44,54,4

15,8 16,1 16,1 17,8 17,8 17,8 17,5 17,8

26,3 26,9 26,9

31,0 31,1 31,2 30,9 30,6

1995 1996 1997 1998 1999 2000 2001 2002

A B C

Source: Brasil em Foco - IBGE

A CAGR : 0,47%

B CAGR : 1,47%

C CAGR : 1,7%

Social Classes - Percentage

BRAZIL, AN OVERVIEWSOCIAL ECONOMIC INDICATORS

CHILDREN IN SCHOOL

32,1

43,949,1

1990 1999 2002

Source: INEP / IBGE

Students Enrolled In Primary and Secondary Schools - Million

BRAZIL, AN OVERVIEW

SOCIAL ECONOMIC INDICATORS

Source: IBGE

20,0

12,8 12,4

1990 1999 2001

Illiteracy - % Population

BRAZIL, AN OVERVIEW

TECNOLOGY DATA

9,2 10,2

17,7

34,8 35,2

1998 1999 2000 2001 2002

Source: ANATEL

Cellular Phones - Million

BRAZIL, AN OVERVIEW

TECHNOLOGY DATA

22,724,5

30,8

1998 1999 2000 2001 2002

Source: ANATEL

Telephones - Million Fixed Access Lines38,6 38,8

Source: IDC / CSFB

5,2

7,7

12,4

16,6

20,5

1998 1999 2000 2001 2002

Internet Users - Million

BRAZIL, AN OVERVIEW

TECHNOLOGY DATA

BRAZIL, AN OVERVIEW

TECHNOLOGY DATA

6,8

8,3

10,411,2

14,0

1998 1999 2000 2001 2002

Source: SIMENSEN ASS /FGV

Computers - PCs Installed - Million

BRAZIL, AN OVERVIEW

TECHNOLOGY DATA

1,0

2,73,0

3,4 3,5 3,4

1995 1998 1999 2000 2001 2002

Source: ABTA

Cable TV - Million

BRAZIL:

THE MAGAZINE MARKET

Circulation

Advertising

BRAZIL: THE MAGAZINE MARKET CIRCULATION

Market stable at + 410 million copies per year;

Share of single copies sales and subscriptions also stable;

With the end of a very high inflation rate, a new market was touched: popular magazines.

Highlights

245

180157

204181160

238247

139145 148

150

159

170 166 168

3 9 13 1741 40 40

0

1995 1996 1997 1998 1999 2000 2001 2002

Single Copies Subscription Popular

Source: IVC - Dinap

319302 308

331

415

363

413 406

BRAZIL: THE MAGAZINE MARKET 1995 - 2002

Million Copies

2.110

1.698

1.534

1.7441.698

1.889

1.3951.375

1995 1996 1997 1998 1999 2000 2001 2002

Source: IVC - Dinap

BRAZIL: THE MAGAZINE MARKET TOTAL OF TITLES

Source: IVC - Dinap

Average in 2002Per Issue

1 Veja Newsweekly 1.1312 Reader's Digest Monthly 5243 Claudia Women's Monthly 5074 Época Newsweekly 4285 Superinteressante Monthly 4136 Playboy Monthly 3727 Isto É Weekly 3688 Nova Escola Monthly 3589 Manequim Women's Monthly 35310 Viva Mais Women's Weekly 332

Title FrequencyRanking

BRAZIL: THE MAGAZINE MARKET TOP 10 MAGAZINES

Average Circulation

Source: IVC - Dinap

Ranking Segment 1995 2002 % of Growth

1 Women's Magazine 90.201 157.965 75,132 Finance/Business/News 91.312 118.248 29,503 Others 54.505 48.988 -10,124 Children 49.493 34.283 -30,735 General Interest 7.400 14.097 90,506 Men's Magazine 8.325 8.997 8,077 Sports 4.008 6.138 53,148 Computers / IT 4.451 4.928 10,729 Automotive 5.377 4.283 -20,35

10 Travel 3.055 4.196 37,3511 Education 687 3.948 474,67

Total 318.814 406.071 27,37

BRAZIL: THE MAGAZINE MARKET BREAKDOWN OF SEGMENTS 1995 - 2002

Thousand Copies

0 3 10 14 20

56 52 49

90 8687

95103

102 112109

1995 1996 1997 1998 1999 2000 2001 2002

Coverprice under US$ 0.58 Others

8997

109

123

158164

158

90

Source: IVC - Dinap

69%

31%

BRAZIL: THE MAGAZINE MARKET CIRCULATION MARKET WOMEN’S MAGAZINE: 1995 - 2002

Million Copies

Share of magazines is stable;

Significant drop in total advertising expenditure, when measured in dollars, as a result of the devaluation of the “Real”.

BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE

Highlights

985 9381.043

8.815 8.337 8.698

2000 2001 2002

Magazines Others

Source: Projeto Intermeios

9.8599.323 9.636

Magazine Market Share

BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002

Reais - R$ - Million

10,6% 10,6% 9,7%

419 314568

2.9993.548

4.799

2000 2001 2002

Others

Magazines

Dollar Rate: R$ 1,837 R$ 2,350 R$ 2,908

5.367

3.967

3.313

Source: Projeto Intermeios

BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002

US$ - Million

1.153

844

664

262

188

152

419 314568

1.9532.273

3.016

2000 2001 2002

Pay TV

Others

Outdoor

Radio

Newspaper

TV

Magazines

Dollar Rate: R$ 1,837 R$ 2,350 R$ 2,908

5.367

3.967

3.313

Source: Projeto Intermeios

BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002

US$ - Million

TOP ADVERTISING CATEGORIES - 2002

Source: Ibope Monitor/ Projeto Intermeios

Advertising Categories Total Spent in Magazines Magazine Share

Automotive 913.277 9,9%

Finance 680.580 10,9%

Services (government) 659.976 4,4%

Drink 355.806 5,3%

Telecommunications 339.806 8,6%

Health & Beauty 330.029 22,6%

Food 326.407 7,1%

Retail 266.361 14,4%

Clothes & Accessories 181.195 45,0%

Electrical/Electronic 135.837 30,3%

Travel & Tourism 134.287 15,3%

Technology 72.453 42,2%

Reais - R$ - Million

American and European

Publishers Doing

Business in Brazil

Reader's Digest Reader's Digest RD Brasil

Superinteressante G+J Spain Editora Abril

Playboy PEI Editora AbrilNova (Cosmopolitan) Hearst Corporation Editora Abril

Marie Claire Marie Claire Group Editora Globo

National Geographic NGS Editora AbrilElle Hachette Editora Abril

Estilo de Vida (In Style) Time Inc. Editora Abril

Forbes Brasil Forbes JB S.A.Vogue Condé Nast Carta Editorial

Casa Vogue Condé Nast Carta Editorial

Disney Disney Enterprises Inc. Editora Abril

Marvel Comics Marvel Characters Inc. Panini Brasil DC Comics DC Comics Inc. Panini Brasil

Title Company With

Source: IVC - Dinap

INTERNATIONAL MAGAZINESIN BRAZIL

Foreign Investment

A new law, approved in Congress,

allows up to 30% of Foreign Capital

in Brazilian Media Companies.