ATRESMEDIA. Diversification Day. 10 th December

Transcription

1 ATRESMEDIA Diversification Day 10 th December 2014 Roadshow Diversification back up_mar Day_Atresmedia_

2 Diversification Day 12:30 Diversification within Atresmedia Mr. Silvio González CEO Atresmedia 12:45 Diversification activities: details Mr. Javier Nuche General Manager Diversification 13:45 Q&A Roadshow Diversification back up_mar Day_Atresmedia_

3 Diversification Day Diversification within Atresmedia Mr. Silvio González CEO Atresmedia Roadshow Diversification back up_mar Day_Atresmedia_

4 Atresmedia: Medium-term goals Goals review 1 mill TV & Radio margins 2 3 Financial goals Other revenues than TV & Radio advertising as % of Total Revenues ,703 Alltime average 2,100 Total Net DebtTarget Total Net Debt 150 M 130 M last10y avg 10% EBITDA Margin >25% 100 M Alltime average 460 Dividend policy Payout ratio 5% EBITDA Margin >25% 80% Roadshow Diversification back up_mar Day_Atresmedia_

5 Atresmedia: TV & Radio Television and Radio s EBITDA margin on track MarketGross Ad revenues ( mill) & EBITDA Margin , e 1,855 13%* Alltime average 2,100 25% e % 21%* Alltime average % 7% EBITDA Margin EBITDA Margin At 9M14 Source: Kantar Media * 9M 14 Proforma excluding Melodía FM Roadshow Diversification back up_mar Day_Atresmedia_

6 Atresmedia: Financials Debt at target level and dividend policy according to plan Total Net DebtTarget ( mill) Dividend policy mill Long term target 100 mill Payout ratio 80% 2014 Interimdividend: 0.10 Roadshow Diversification back up_mar Day_Atresmedia_

7 Atresmedia: Other revenues Fully committed in Other revenues Other revenues than TV & Radio advertising as % of Total Revenues x2 Others* 45% 10% 55% Diversification 5% 2017e: 100 mill Others* 67% 33% Diversification 2013: 50 mill *Others: Atresmedia Digital & Atresmedia Films Roadshow Diversification back up_mar Day_Atresmedia_

8 Atresmedia Diversification within the company Diversification: Cross divisional area OTHERS (*) DIVERSIFICATION ADVERTISING Roadshow Diversification back up_mar Day_Atresmedia_

9 Atresmedia Diversification: Map of revenues sources Diversification revenues generated at different reporting areas TV Ad Radio Ad TV non Ad International Adjacent Business incubator Adjacent Others MxE Roadshow Diversification back up_mar Day_Atresmedia_

10 Diversification Day Diversification activities: details Mr. Javier Nuche General Manager Diversification Roadshow Diversification back up_mar Day_Atresmedia_

11 Atresmedia Diversification: Structure Diversification is based on three pillars Roadshow Diversification back up_mar Day_Atresmedia_

12 Atresmedia Diversification: Adjacent businesses Adjacent: A recurring highly profitable business Late night &Teleshop Music Rights Licensing Adjacent Stable& recurring revenues High margins(>50%) Mature business Roadshow Diversification back up_mar Day_Atresmedia_

13 Atresmedia Diversification: Adjacent businesses Adjacent: New initatives Roadshow Diversification back up_mar Day_Atresmedia_

14 Atresmedia Diversification: International Atresmedia s international channels: Presence in key markets Hispanic market: 14 mill HH of whichpaytv: 10 millhh withhispanictv bundle: 4.6 millhh Top 5*: 85% CAGR last5 years: +4% CAGR last5 years: +3% Total TV HH: 165 millhh of whichpaytv: 95 millhh Top 5 countries***: 70% CAGR last5 years: +16% Total TV HH: 78 millhh of whichpaytv: 40 millhh Top 5 countries**: 87% *Top 5 companies: DISH, Direct TV, Comcast, Time Warner & Cablevision **Top 5 countries(excl Brazil): Mexico, Argentina, Colombia, Chile & Venezuela ***Top 5 countries: UK, Germany, France, Italy& Spain Source: Business Bureau, Digital TV Research Roadshow Diversification back up_mar Day_Atresmedia_

15 Atresmedia Diversification: International International: More than 23 mill subscribers in 2014 (Antena 3 s premium content channel) 15 mill subscribers #6 Latam entertaiment pay TV channel (Celebrity& Life-style channel) 7 mill subscribers #10 Latam entertaiment pay TV channel (Atresmedia s best-series channel) 1 mill subscribers Launched in July % 20% 3.5 mill 100 % 57% 1.5 mill 34% 2% 64% 18 mill Source: Internal estimates& Business Bureau (Direct TV data) Roadshow Diversification back up_mar Day_Atresmedia_

16 Atresmedia Diversification: International A3 International: #1 European commercial broadcaster off-shore countries(first emission in USA) 3.7 mill subscribers 2014 #1 European commercial broadcaster off-shore 24 Countries 15 mill subscribers 21 Countries First emissions in Europe(Switzerland) 6 mill subscribers Launch in partnership with MVS 1 country: Mexico Roadshow Diversification back up_mar Day_Atresmedia_

17 Atresmedia Diversification: International Hola TV: Usingknowhowtoexplore new markets Launched in September 13. CELEBRITY & LIFESTYLE PAY TV CHANNEL IN SPANISH! The most successful independent TV launch in last 5 years Distributed in Latam and the US Hispanic market, in cable and satellite More than 7 mill HH Subscriber fees and ad-based model Roadshow Diversification back up_mar Day_Atresmedia_

18 Atresmedia Diversification: International Atres Series: 1st series channel in Spanish language Best of Atresmedia s series production 100% in-house production 1st series channel in Spanish language 1 million subscribers since inception(july 14) Successful tested content Roadshow Diversification back up_mar Day_Atresmedia_

19 Atresmedia Diversification: International International: Outstanding growth potential Subscribers In millions x Growth drivers Organic growth in HD bundles AppetiteforVoD& catch up offer Panam strategic distribution deal Well-known brand Original content Advertising opportunities penetration in USA market Cost per subscriber optimization Organic growth in digital tiers Roadshow Diversification back up_mar Day_Atresmedia_

20 Atresmedia Diversification: MxE& Incubator MxE& Business incubator: Business rational Competitive advantage Talent detection Revenues diversification Enlarging advertising portfolio Capital venture approach Roadshow Diversification back up_mar Day_Atresmedia_

21 Atresmedia Diversification: MxE& Incubator MxE& Incubator: Strategic approach Our strategy MxE Target: Spanish start ups Return: Capital venture approach& Potential strategic investments Tickets: 0.5 to 2.0 mill through ad contribution/ Equity target: 10-20% Optimal portfolio: recurring projects Business incubator MxE Fund (in project) Seeking successful businesses abroad to be adapted to the domestic market Return: Recurrent revenue stream(i.e. Nubeox, Tu Album) Majority shareholders Optimal portfolio: 5-7 projects Being part of a Spanish multimedia fund Return: Pure venture capital approach Entry at early stages Roadshow Diversification back up_mar Day_Atresmedia_

22 Atresmedia Diversification: Media for Equity MxE: Current portfolio 2014 Automotion Sizeable Market: 1,500 mill(spain) Lowonline share vs. EU countries: <2% vs >12% Excellent service which covers a real need Veryreactive to TV Advertising. Spanish leaders in MxE Incremental customerbase Complementaryto traditional TV ads Media For Equity (current portfolio) 2012 Fashion & Accesories 2014 Classified Largeonline market> 300 MM (Spain) Unique value proposition: impulsive purchase dueto TV + Mobile + Fashion Attractiveexitoptions. Spain: haven for classified businesses Opportunity for a 100% mobile player International approach Online eager of TV airtime 2013 Couponing Marketconcentration. High profitability and cash generation. Potential opportunity for a strategic investment Media x Revenue Functional juices: an international market trend. GAP in thespanishmarket. Rightpartners: Arguiñano, AMC. Zero riskand earlypositive cash flow. Roadshow Diversification back up_mar Day_Atresmedia_

23 Atresmedia Diversification: Media for Equity MxE: Exploring new projects Automotion Newco Classified & Social Fashion& Accesories Travel Media For Equity Health Sports Leisure Newco Education Technology Others 2015e Roadshow Diversification back up_mar Day_Atresmedia_

24 Atresmedia Diversification: MxE& Incubator MxE portfolio begins value creation KPIs %Equity Current Portfolio Estimated Value Target Exit Value Coupons sold> 40 mill Rev. 14 > 11 mill EBITDA 14 > 2 mill 15-20% Online market leader 100% Rev. Growth YoY Avg. customerreview: 9 > 4 milldownloads > 1,5 millmonthlyactive users > 3 mill daily transactions value 15-20% 10-15% mill mill Revenues x2 since MxE Over 500k registered users Near 10 mill visits/year 50% Roadshow Diversification back up_mar Day_Atresmedia_

25 Atresmedia Diversification: Nubeox Nubeox: Atresmedia s VoD offer TVOD >3,000 films & series Deals with main majors (Warner, Universal, Sony, Disney & Paramount) From 0.99 to Pay Tv channels Premium Library >40,000 hours SVOD + PayTV Channels <10 /month Films >1,000 films & series Roadshow Diversification back up_mar Day_Atresmedia_

26 Atresmedia Diversification: Nubeox Nubeox: The most varied offer in the market Competition KPIs Growth drivers Wuaki(TVoD + SVoD) Yomvi(Canales + SVoD) Movistar TV (Channels + SVoD) Filmin(TVoD + SVoD) itunes (TVoD) Google Play (TVoD) >400,000 registered users >500,000 unique visits/month TVoD: 6,000 users/month SVoD: 10,000 subscribers Most varied offer of the market Lowcostno-time commitment offer Strong communication campaign ConnectedTV growth Roadshow Diversification back up_mar Day_Atresmedia_

27 Atresmedia Diversification: Tu Album Tu Album: A newcomerin a sizeablemarket 2013 Spain 8% 24% ** Photobooks: 25 mill units Market: 756 mill 92% online 48% * 18% Photobooks: 1.9 mill units Market: 71 mill 84% online Others 1% Source: Futuresource * Hoffman acquired by Photobox, leader in UK, in October 2014 **Fotoprix is currently under chapter 11 Roadshow Diversification back up_mar Day_Atresmedia_

28 Atresmedia Diversification: Tu Album Tu Album: Growth potential through communication 2014e KPIs 950,000 visits 50,000 downloads 11,500 photobooks Marketshare 1% Growth drivers High quality products Communication driven No financial risk: most outsourced Unique client service Changing market structure: roomto market share gains Partof a large communication group Roadshow Diversification back up_mar Day_Atresmedia_

29 Atresmedia Diversification: Growth strategy International and MxE/Incubator as main drivers MxE Exit value Incubator International x3 Adjacent Revenues Roadshow Diversification back up_mar Day_Atresmedia_

30 Diversification Day Q&A Roadshow Diversification back up_mar Day_Atresmedia_

31 Additional information Investor Relations Department Phone: Web: Legal Notice The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modifications. None of the Company, its shareholders or any of their respective affiliates shall be liable for the accuracy or completeness of the information or statements included in this presentation, and in no event may its content be construed as any type of explicit or implicit representation or warranty made by the Company, its shareholders or any other such person. Likewise, none of the Company, its shareholders or any of their respective affiliates shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or distribute this presentation to any person. The Company does not undertake to publish any possible modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Company, or occurrence of unforeseeable facts or events that affect the Company s strategy or intentions. This presentation may contain forward-looking statements with respect to the business, investments, financial condition, results of operations, dividends, strategy, plans and objectives of the Company. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company s current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors, including political, economic and regulatory developments in Spain and the European Union, could cause actual results and developments to differ materially from those expressed or implied in any forward-looking statements contained herein. The information contained in this presentation does not constitute an offer or invitation to purchase or subscribe for any ordinary shares, and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Roadshow Diversification back up_mar Day_Atresmedia_

32 ATRESMEDIA Diversification Day 10th December 2014 Q&A Session Roadshow Diversification back up_mar Day_Atresmedia_