ATRESMEDIA. Investor and Analyst Day. 12 th December

Transcription

1 ATRESMEDIA Investor and Analyst Day 12 th December

2 Agenda 10:30 Welcome Recent history of Atresmedia (Mr. Silvio González) Atresmedia s positioning (Mr. Silvio González) Advertising (Mr. Eduardo Olano) Audience/Contents (Mr. Javier Bardají) Digital(Mr. José Manuel González Pacheco) Radio(Mr. Ramón Osorio) Financials(Mr. Silvio González) 13:15 Q&A Speakers Mr. Silvio González CEO Atresmedia Mr. Eduardo Olano General Manager Atresmedia Publicidad Mr. Javier Bardají General Manager Atresmedia Televisión Mr. José M. González Pacheco General Manager Atresmedia Digital Mr. Ramón Osorio General Manager Atresmedia Radio 2

3 Investor & Analyst Day Advertising Atresmedia Atresmedia, Positioning & Strategy Audience/Contents Digital Radio Financials 3

4 Highlights Media Industry High volatility in Ad market Significant changes in the industry TV: The most important medium Atresmedia Excellent capacity to adapt Best in class Solid foundations to face the future 4

5 Spanish Ad market Current Ad market 30% below last 10 year average Total Ad market In million % -48% -31% vs last10 year average % vs all-time average Source: Infoadex. 2013e: Arce Media. 5

6 Spanish Ad market TV and Radio stable. Internet grabbed Press share Ad marketbymedia 41,6% 43,4% 40,0% 39,5% 34,4% 22,5% 20,4% 9,1% 8,5% 9,7% 1,3% 6,0% Source: Infoadex. 2013e =Arce Media 6

7 Spanish Ad market Spain: the biggest drop in Ad spend intensity Ad spendas % of GDP 0,7% 0,8% 0,7% 0,7% 0,7% e 0,4% 10bps 0,6% 0,5% 0 bps 0,6% 0,5% European avg % 2013e 0.6% 30bps 10bps 10bps Source: Eurostat. Infoadex& other sources 7

8 Television industry Significant changes in the TV market structure Number of players Net TV Veo TV Net TV Veo TV

9 Television industry Prices and volumes at very low levels TV Ad market In million+ Market Prices& Volumes in index terms TV ad market Nominal Prices Volumes e Source: TV Market: Infoadex. 2013e: Arce Media Prices: Internal estimates. Conventional advertising. 2013e: Jan-Nov 13 Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE. 2013:e Jan-Nov 13 9

10 Television industry TV viewing in constant growth in all age groups Average daily viewing In min 339 Age groups > to Ind4+ 25 to 44 4 to to 24 Source: Kantar Media at Nov 30 10

11 Television industry Sector shifts throughout the decade TV Market & Sectors In million Beauty Food Automotive Telecom Retail Finance Beverages Culture Others 8% 7% 5% 7% 8% 14% 16% 14% 21% 11% 12% 15% 9% 7% 8% 6% 8% 24% 5% 4% 17% 14% 10% 12% 10% 11% 17% Source: Infoadexand Arce Media (2013e). Sectors(internal estimates) 2013e: 9M13 11

12 Television industry Spanish TV CPM: The lowest among media and countries CPM by media & TV CPM by country In /1,000 impacts 14,2 13,0 8,3 6,6 2,2 3,7 9,0 2,2 3,9 2,4 Source: P. Network EGTA Database Kantar Media. Arthur D. Little. Internal estimates 12

13 Television industry Pay TV in Spain: Low audience & penetration Penetration (% of households) Audience 24h, Total individuals % 21.4% 2.7% 5.6% 86.7% 78.6% 97.3% 94.4% Source: Kantar Media 2013 at Nov 30 13

14 Radio industry Current radio audience at its peak Total number of listeners million listeners Source: EGM. Yearly average 14

15 Radio industry Radio market structure remains stable 6stations 2 stations 6stations 2 2stations 3stations 5 5stations stations 2 stations 4stations 5stations 5stations Non ad-based 15

16 Radio industry Significant changes in sector weights Radio Market & sectors In mill Culture&Education Retail Public Services Telecom Finance Autos Beverages Transport Food Health Rest 7% 6% 6% 5% 4% 3% 3% 13% 15% 16% 22% 5% 7% 4% 6% 4% 3% 17% 16% 14% 11% 13% 3% 3% 3% 2% 12% 13% 10% 16% 8% 9% 19% Source: Infoadexand Arce Media (2013e). Sectors(internal estimates) 2013e: 9M13 16

17 Atresmedia Continuously growing to become a leading group 17

18 Atresmedia Stable shareholder structure Max: 23.2 /acc Feb-06 Last: 11,3 /acc 6.3 /acc Oct-03 Min: 2.8 Jul % 17.2% 0.0% 0.0% 10.0% 39.2% Planeta-De Agostini RTL Group Shareh. La Sexta Treasury stock Others Free-float 41.7% 19.2% 7.0% 7.0% 0.0% 25.1% 18

19 Atresmedia Atresmedia outperforming the market Gross Ad revenues In mill % vs % vs % vs % vs % vs % vs 2007 Source: Infoadex. 2013: Arce Media & Market consensus 19

20 Atresmedia Significant economies of scale OPEX In million TV channels + Distribution fees + TVE taxes Source: Internal estimates. 2013: Market consensus 20

21 Atresmedia Television Television: audience share boosts market share Audience Market share +9 pp 28,6% 19,5% x1.8 Source: Kantar Media (Total Ind 4+) 2013 at Nov 30 Source: Infoadex. 2013: 9M13 21

22 Atresmedia Television Audience: best in class in Total Individuals Audience share 4+ 28,6% 29,0% 30,7% 19,5% 21,4% 16,7% 18,2% +9pp +8pp -14pp 8,6% -10pp Source: Kantar Media (Total Ind4+) at Nov 30 22

23 Atresmedia Television and in Commercial Target Commercial Target 30,9% 31,3% 26,3% 20,6% 24,5% 13,9% 16,2% +10pp +7pp -12pp 5,8% -10pp Source: Kantar Media. Commercial Target (16-54 y) at Nov 30 23

24 Atresmedia Television Outperforming the market in 7 years of the decade TV Gross Ad Revenues yoy 25,7% 19,3% 18,3% Market Antena 3 6,7% 1,0% 15,2% 9,0% 9,6% 8,8% 0,2% -0,2% -11,1% -15,5% 4,0% -1,3% -9,5% -6% -6% -7,5% -17,4% -22,9% -18,9% e Source: Infoadex. 2013e: Arce Media & Market Consensus. Atresmedia proforma in 2013e 24

25 Atresmedia: Key strategic decisions Four key strategic decisions Strategy on family of channels Advertising bundling Cost efficiency La Sexta s merger 25

26 Atresmedia: Key strategic decisions Pioneers in the family of channels strategy Age Male Female 26

27 Atresmedia: Key strategic decisions Unique commercial offer Coverage Advertising bundling Affinity Source: Internal estimates 27

28 Atresmedia: Key strategic decisions Greater cost structure flexibility Atresmedia business in 2007 Atresmedia business in 2013 Core business Core business Production Services (fixed cost scheme) >450 employees outsourced (>20% of total workforce) Outsourced Services (variable cost scheme) 28

29 Atresmedia: Key strategic decisions Successful merger Audience share Antena 3: Best rating since 2006 La Sexta: All-time high audiences Synergies Market share gains are real (+2pp) Cost synergies above expectations Value creation La Sexta s break-even from 1st day Value added transaction as of

30 Atresmedia Closing the gap in margins with our competitor Pending issue Average EBITDA margin 12pp 1pp Consensus e Source: Annual accounts& market consensus 30

31 Atresmedia Radio Solid performance in the last decade Number of listeners Market share x Source: EGM. Yearly averagedata Source: Infoadex. 2013: Arce Media and Internal Estimates 31

32 Atresmedia Radio 2013 audience doubles ,324 k +393 k ,762 k Source: EGM Avg surveys

33 Atresmedia Radio Radio division ahead of the market Gross Ad revenues Market From 2003 to date -21% Frompeak (2007) to date -41% +1% -22% Average EBITDA margin % Source: Infoadex. 2013: Arce Media and Internal Estimates 33

34 Atresmedia Over 900 million paid in dividends Dividends paid million Average Net Debt Avg. Net Debt/EBITDA Average ROE million x1.4 40% Source: Atresmedia 34

36 Atresmedia: Positioning& Strategy Solid and clear group structure OTHERS (*) ADVERTISING 36

37 Atresmedia: Positioning& Strategy Unique market positioning TELEVISION RADIO ATRESMEDIA TV Ad market Radio Ad market Total Ad market 43% 20% 21% Source: Infoadex& internal estimates 37

38 Atresmedia: Positioning& Strategy Full commitment with social actions Antena 3, 1 st in ranking among public and private Televisions in Spain in Corporate Responsibility (2012) The highest qualification among media companies in quality of ESG information (2012 & 2013) Morethan 19millionraisedfor Social Goodin last decade Contributing to Society Active in the most relevant CR Forums& Indexes 38

39 Atresmedia: Positioning& Strategy Atresmedia: In top position in ad sales Net ad revenues Spain 545mill (-7%) 538mill (-9%) 188mill (-12%) 21% 21% 7% Source: Official financial results for Spanish divisions Jan-Sep 2013 vs2012 Market share vsinfoadexjan-sep 2013 Conventional media. 39

40 Atresmedia: Positioning& Strategy due to a clear strategy Leading sales house Diversification Clear TV identity Outstanding Radio model Multimedia strategy 40

42 Atresmedia Advertising Atresmedia: Top 1 commercial force 1st 1st 1st CUSTOMER-ORIENTED PROPOSALS CLOSE RELATIONSHIP WITH CUSTOMERS INTEGRATED PROPOSALS Source: Grupo Consultores Bi-annual survey(367 media buyers and advertisers) 42

43 Atresmedia Advertising ROI analysis confirms TV as leading category 1 ST GLOBAL STUDY ON TV EFFECTIVENESS* 2 outof 3 brands: Sales boostedin theshort run IncreaseCostumersFidelity, Marketshare, Sales and Penetration Key tool when competing against generic brands * Collaboration agreement between Kantar World Panel & Atresmedia Publicidad 42 TV campaigns assessed during Q (Food, Beverages, Beauty and Personal Care) Two customer panels declarating their real purchases(8,400 households and 4,000 individuals) 43

44 Atresmedia Advertising Focus on premium price Grp cost index 2013 (Index 100 Total TV) 1,04 1,08 0,97 0,98 0,95 0,93 Source: Grp cost index January-October Adults

45 Atresmedia Advertising Sales house unique positioning 45

46 Atresmedia Advertising Leading product in advertising reach Customer oriented Reach (%) 60,9 65,1 56,8 60,8 68,3 64,0 70,8 72,8 74,4 75,8 77,0 78,1 79,0 79,8 66,5 68,5 70,2 71,7 72,9 74,0 75,0 75,8 MODULO Grps Grps Reach delivered ,8% ,8% 46

47 Atresmedia Advertising New advertising formats Innovation Multimedia Brand Day (Spanish only sales house combining TV+RADIO) Branded Content Event Multimedia Coverage Social Media Commercial Section Inside Program Active mentions Multiscreen campaign (Spanish onlysales house with App) Sponsorship Brand involment in corporate responsability (Spanish only sales house with far-reaching CR initiatives) 47

48 Atresmedia Advertising Multi-screen campaigns Innovation Ipad Online Smart TV App 48

49 Atresmedia Advertising Exploring new business models: Media for equity Innovation Clothing e-shop Media for equity El armario de la tele, the e-shop where tobuy the clothes seenon TV +100% sales since the start of the TV campaign Potential market: Spain and Latam market Othersin pipeline Couponing Pure venture capital approach +50% sales and +100% registrations since the start of the media campaign (TV, radio & internet) 49

50 Atresmedia Advertising Use of predictive awareness model Effectiveness MEFE TV Econometric model that enables advertisers to understand and forecast campaigns awareness First econometric tool ever developed by a sales house R 2 92,8% CAMPAIGN AWARENESS PREDICTIVE MODEL 50

51 Atresmedia Advertising Multimedia approach creates relevant synergies Profitability Number of shared advertisers(%) TV Radio 29,8% Online 14,2% Online TV 64,1% Radio 37,1% Radio TV 16,2% Online 7,7% Source: Internal. January-September

52 Atresmedia Advertising which help to boost group s revenues Profitability In termsof revenue(%) TV Online Radio 46,1% trimedia 60,1% trimedia 42,0% trimedia Source: Internal. January-September

53 Atresmedia Advertising Profitability Outperforming the market in every division Gross Ad Revenues at 9M13 yoy Market Atresmedia 8,0% Power ratio ARPU ( ) 11-7,6% -4,7% -3,9% x1.5 Market 8-10,4% -12,7% TV Radio Online Sources: Infoadex. EGM. IAB 53

54 Investor & Analyst Day Advertising Atresmedia Atresmedia, Positioning & Strategy Audience/Contents Digital Radio Financial 54

55 Atresmedia: Audience& Contents Atresmedia Television: unique TV offer 55

56 Atresmedia: Audience& Contents and leading TV position Total Ind. Audience: 28.6% Comm. Target Audience: 30.9% 7 channels under management Antena 3: 13.3% Best ratings since 2009 La Sexta: 6.0% Best ratings since 2010 Complementary channels The largest offer in targets Audience: 9.4% Source: Kantar Media Data at Nov 30 56

57 Atresmedia: Audience& Contents Continuously increasing audience share AtresmediaTV Audience 24h, Ind4+ 27,6% 28,2% 28,5% 28,8% +0,5 29,3% +0,6 +0,3 +0,3 Source: Kantar Media 4Q 13: Data at Nov 30 57

58 Atresmedia: Audience& Contents Achieving best ratings in Commercial Target AtresmediaTV Audience Total Day (2013) AtresmediaTV Audience Prime Time (2013) 32,9% 30,9% 28,6% 29,3% Source: Kantar Media 2013: Data at Nov 30 58

59 Atresmedia: Audience& Contents A3 & La Sexta driving Atresmedia s growth 2013 vs2012 Audience Share Total Individuals 2013 vs2012 Audience Share Commercial Target +1,1 +0,8 +1,1 +0,8 0,0-0,2-0,5-2,0-1,2-1,7 6.0% 13.3% 6.0% 13.4% 10.2% 6.6% 13.2% 7.4% 12.1% 8.3% Source: Kantar Media 2013: Data at Nov 30 59

60 Atresmedia: Audience& Contents Antena 3, the driving force Our TV model Leading Commercial Target Variety with quality 18% News 18% Cinema 29% Entertainment 2% Sports Leading offer for viewers and advertisers Current affairs 17% Spanish fiction 11% 5% US fiction Efficiency 56% success ratio vs 20% for market % of hours broadcasted. Internal estimates 60

61 Atresmedia: Audience& Contents A3: a growing channel and Commercial Target leader Total Individuals 24h Commercial Target 24h 16,0 14,5 14,6 14,2 11,7 11,5 13,9 12,5 12,2 13,4 13,3 10,2 14,8 13,8 13,0 12,0 11,8 11,7 13,3 12,5 10,0 13,2 12,1 8,3 Source: Kantar Media 2013: Data at Nov 30 61

62 Atresmedia: Audience& Contents Succesful merger with La Sexta Total Individuals 24h Total Individuals 24h Merger 6,0 6,0 4,9 6,0 5,2 4,8 4,6 4,7 5,5 5,9 6,2 5,8 6,3 Q4 11Q1 12Q2 12 Q3 12Q4 12Q1 13Q2 13Q3 13Q4 13 Source: Kantar Media 2013: Data at Nov 30 62

63 Atresmedia: Audience& Contents Audience share goes up while costs go down 2013e Audience yoy Total TV OPEX (net of distribution fees) million per 1% audience +11% -18% e TV Opexyoy 2013 costper 1% audienceat level Sources: Kantar Media & Atresmedia 63

64 Atresmedia: Audience& Contents with a clear business model Production model 100% external with full cost & content control Quality control Audit and cost control Outsourcing Multiplatform oriented Acquisition policy Films & series Enhances variety Highly profitable content Multichannel oriented Enhances Comm. Target Sports Complementary Widen audience target Event driver Appropriate only at reasonable costs 64

65 Atresmedia: Audience& Contents Hola TV: Using know how to explore new markets Launched in September 13. Celebrity and Lifestyle PayTVChannelin Spanish Distributed in Latam and the US Hispanic market, in cable and satellite Guaranteed initial distribution of nearly 4 mill HH Subscriber fees and ad-based model magazine 65

66 Atresmedia: Audience& Contents Atresmedia Television: A successful business model 66

67 Investor & Analyst Day Advertising Atresmedia Atresmedia, Positioning & strategy Audience/Contents Digital Radio Financials 67

68 Atresmedia Digital Main business metrics strong growth Atresmedia s unique users Monthly average (in million) Atresmedia s video streams Monthly average (in million) 9,1 11,8 49,9 52,3 56,7 4,8 6,9 + 7 mill unique users 30, mill video streams Sources: Nielsen Market Intelligence/Site Catalyst 2013: Jan - Nov Sources: Smart Ad Server 2013: Jan -Sept 68

69 Atresmedia Digital Offer based on web long form content Type of video stream by type of content Monthly average Type of video stream by device Monthly average Short 21% form 16% 2% Mobile & Connected TV 15% Long form 79% 84% 98% Web 85% Sources: Smart Ad Server 2013: Jan -Sept Sources: Smart Ad Server 2013: Jan -Sept 69

70 Atresmedia Digital Four main fields of action Web platform Contents Atresplayer Reach increase Users registration TV model Pure internet content Internationalization Distribution Monetization Access to new users Mobile & Connected TV Second screen Comm. product optimization Pay contents Other non ad-based rev. 70

71 Atresmedia Digital ATRESPLAYER: new video online platform Unique Long Form container High video quality(hd,hd+,dolby) New functions(vo, subtitles, playlists) Multiplatform product Smart advertising Registration First metrics Oct-Nov 760k Downloads in Apple Stores +20% Video unique users 71

72 Atresmedia Digital ATRESPLAYER: launched x in October

73 Atresmedia Digital Gathering information from users User Info Model Launchedin Nov 13 Information gathering (Profiles & affinities) Data on sources (devices) Consumption patterns Online / offline operational tool Segmentation marketing Transactionalproduct& services 73

74 Atresmedia Digital Enhancing pure internet content Video channels (Video) Thematic channels Atresmedia s platforms Reach increase Pure internet content Internationalization Segmentation Verticals (Text) : Celebrities, Se estrena, El Sótano, CienciaXplora, TecnoXplora, Sport Aire Libre,.. In pipeline: Children, Travel, Additional revenues sources Synergies 74

75 Atresmedia Digital Searching new distribution channels Bestappof the year* Second screen Distribution agreements Access to current and potential new users International New tecnologies * 2013 TAB Innovation Awards 75

76 Atresmedia Digital Optimizing online advertising Platform Contents Distribution 76

77 Atresmedia Digital Fostering other non-ad based revenue sources Pay VoD Non-ad based revenues Atresmedia TV non related contents Additional rev for some own contents Synergies E-learning New businesses Photo album Online games Others New brands Conversion potential 77

78 Investor & Analyst Day Commercial Atresmedia Atresmedia, Positioning & strategy Audience/Contents Digital Radio Financial 78

79 Atresmedia Radio Atresmedia Radio: #2 in audience but #1 in profitability # 2 talkradio 2.6 mill listeners # 3 musicradio 2 mill listeners Second radio player in Spain 4.8 million listeners 232 Radio stations 20% market share Source: EGM 2013 yearly average Market Share: Internal estimates 79

80 Atresmedia Radio Well defined and identifiable offer The radio you deserve. Your radio The best pop rock music selection (90-00s) Source: CIMOP & P1Research 80

81 Atresmedia Radio Outstanding growth in both radio offers Source: EGM yearly average 81

82 Atresmedia Radio Onda Cero: The best commercial profile Commercial Profile 93% 85% 62% 83% 52% 71% High school + Urban Mid-High Income Onda Cero Market Source: EGM rd wave 82

83 Atresmedia Radio Europa FM, attractive commercial profile Commercial Profile 90% 85% 50% 78% 52% 71% High school + Urban Mid-High Income Europa FM Market Source: EGM rd wave 83

84 Atresmedia Radio Our music radio underweighted vs market mix % source of revenue 17% 83% Talk radio Music radio Music radio 33% 67% Talk radio Radio market Source: Internal estimates 84

85 Atresmedia Radio Price potencial in our music formats revenue / listener 25 /listener 14,6 16,4 Talk Radio market 22 /listener Musical Radio market 9 /listener Radio market 6 /listener 1 /listener Source: Internal estimates 85

86 Atresmedia Radio Discipline in costs increases EBITDA margins OPEX AverageEBITDA margin ( ) +19% Source: Annual accounts 86

87 Atresmedia Radio Radio business enhances TV & Digital activities Radio Cross promotion Cross-selling Audience complementary (PT) Boost social policies (CSR) Synergies TV Digital 87

88 Atresmedia Radio Four main strategic drivers Sustain organic growth in Onda Cero Strategic drivers Boost revenue/listener in Europa FM Redefinition & Launch of Melodía FM Opportunities to syndicate independent radio stations 88

90 Atresmedia: Financials Our main goal: To be leaders in profitability 90

91 Atresmedia: Financials Growth drivers across every division Reinforcing our current TV model Adding value through the merger Benefiting from market rationalisation Consolidating upward trend in audience Europa FM: price increase potential Launching a third radio station (Melodía FM Atresplayer + CRM Pure internet content D Diversification 91

92 Atresmedia: Financials Target: EBITDA margin>25% All time average 2, e 1,680 Market Gross Ad revenues EBITDA Margin >25% All time average e 400 Market Gross Ad revenues EBITDA Margin >25% 92

93 Atresmedia: Financials Target: Other revenues up to 10% of Total Revenues OtherrevenuesthanTV & Radio as % of Total Revenues 10% 5% Media for equity 93

94 Atresmedia: Financials Target: Solid balance sheet and attractive dividend policy Total Net DebtTarget Dividend policy 150 M Payout ratio Total Net Debt 130 M last10y avg 100 M 80% 94

95 ATRESMEDIA Investor and Analyst Day 12 th December 2013 Q&A Session 95