feb17 santander iberian conference atresmedia...jun 27, 2017 · roadshowback up_mar...

1Roadshow back up_Mar 2013 1Fresentation to investors_Santander

ATRESMEDIA

Presentation to investors

Santander XXIII Iberian ConferenceFeb 2017

www.atresmediacorporacion.com


Advertising market in Spain

9M 16 Gross Ad market Yoy growth

≈+1% ≈-1%≈-6%

Total Ad market≈+4%

Advertising at 9M 16: A very positive marketfor TV & Internet

≈+6%

≈+17%

Source: Average on Infoadex & Arcemedia 9M 16 data


TV: Clear leadership

Spanish Ad spending by medium Share


Source: Infoadex

+0.0pp

+23.6pp

-22.2pp

+0.1pp

-1.4pp


Source: Infoadex and Bank of Spain

Total & TV market vs GDP is bouncing back

Total & TV ad intensity (vs GDP)


0.72% 0.74%

0.54%

0.42%0.47%

0.29%0.32%

0.23%

0.17% 0.19%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Ad market

TV Ad market

2002-15 avg=0.59%

(All-time average= 0.73%)

2003-15 avg= 0.25%

(All-time average= 0.29%)


67%

29%

60%

88%

Source: Internal estimates & EGM. 2015 data

8.1

5.1

1.12.2

Spanish TV: Best cost-coverage mix

Cost-coverage by mediumIn €/1,000 impacts & % penetration

CPT

Coverage



Key issues: Ad market recovery & industry changes

Spanish TV industry

• Macro outlook• Ad market growthAd market

• More DTT channels• New players: Pay TV

& OTTs

Industrychanges

2016 key issues


Positive outlook for household consumption & GDP

Spanish TV industry: Main drivers

-0.5%

-2.1%

1.4% 2.6% 2.8%

3.8%

-1.9%

-1.1%

1.0%

3.7% 3.6%

3.3%

2012 2013 2014 2015 2016e 2017e

Consumption

GDP

Consensus

Source: Funcas (Dec 16). In nominal terms

Household Consumption & GDP Yoy growth


Sustainable recovery from very low historical levels

Gross TV Ad market In € mill

Source: Infoadex

* consensus

Spanish TV industry: Ad market

16%10% 8% 9%

-11%

-23%

4%

-10%

-19%

-6%

11%6% 5-6%

2,317

3,469

2,378 2,472

1,703

1,890 2,011

≈2,120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e*

% yoy Gross TV Ad market

Average: 2,450

-13%

-39%


Spanish TV ad market vs other European countries

Source: GS & BoML

* consensus

104

119

79

121

100

92

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e*

Spanish TV Ad market is catching up with its peers

TV ad market growth by countryIn index terms. 2003=100



Spanish TV Ad market: Last 12 quarters in positive

Gross TV Ad market Yoy growth

1%

-14%

-8%

-15%-18%

-15%

-24%-21%

-16%

-10%

-3%

6%

3%

8%

22%

13%12%

8%

3% 3%

6%

11%

1%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY11=-10%

FY12=-19%

FY13=-6%

FY14=+11%

Source: Infoadex.

FY15=+6%

2016YTD

+6%


Source: Internal Estimates

9M 16: Strong performance in Autos

Ad spending by sectors% 9M 16 yoy

Beauty,Hygiene &Cleaning

Food Autos Telcos Retail Finance Health Beverages Others

7%4%

23%

2%5%

-10%

-3%

13%

25%

14% 13% 14% 10% 11% 8% 5% Weight20%

9M 16=+6%


(EnergyHomeSports & leisure…)

5%


Source: • TV Market: Infoadex. 2015 • Prices: Internal estimates. Conventional advertising. • Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE.

Prices and volumes at very low levels

2,317

3,469

1,703

1,890 2,011

100

146 147

109112

116

8389

92

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Nominal Prices Volumes

TV Ad marketIn € million +

Market Prices & Volumesin index terms

TV ad market

Spanish TV industry: Prices and volumes


Source: Infoadex

Stable market shares by player

Market share evolution by playerAd Share

43.8%43.4%44.2%43.7%

42.6%42.1%41.5%42.6%

5.9%6.6%6.8%7.1%4.2%4.3%4.3%4.0%3.5%3.6%3.2%2.6%

9M 16201520142013


Forta

Other FTAs

Pay TVs


Spanish TV industry: Commercial FTA landscape

Net TV

Commercial FTA TV landscape (9M 16)

Veo TV

Atresmedia has a key position in a wide commercial FTA TV offer

Channels

13TV

Secuoya

Real

Madrid TV

Kiss TV

AudienceMkt share Power ratio

27.0%42.6% 1.6x

30.5%43.8% 1.4x

2.9%

2.3%

2.1%

4.2% 0.5x

Source: Kantar Media, Infoadex

0.2%*

0.1%*

0.3%*

*launched in April


Spanish TV industry : Pay TV

Pay TV position in Spain

Pay TV sector in Spain

Source: Kantar Media, Infoadex & CNMC

Pay TV sector in Spain

Pay TV penetration (by CNMC)

Audience% Total Individuals 4+

Ad market share% Total TV ad market

6.9% 7.0%

25.7%

31.9%

2.4% 3.2%

Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 QT16 Q216 Q316 Q416


Spanish TV industry : Pay TV

Pay TV by platform type and player

Source: CNMC

Pay TV sector in Q2 16% Total connections (5.8 mill)

Satellite17%

Cable25%

IPTV55%

Others3%

Telefonica 64%

Vodafone 19%

Orange 7%

Others 10%


Spanish TV industry : OTT TV

Source: Household panels. CNMC 2016

OTT consumption is marginal

TV on demandQ2 16

18 mill households

15 millhouseholds

internet connected

1.6 millhouseholds

consume OTT

of which:

of which:

1.27 mill 0.16 mill0.27 mill

OTT


TV viewing

Source: Kantar Media. Non linear TV viewing includes +7 days viewing through TV set (TV viewing on desktops, tablet or mobile devices not included)

* Data from Feb 15

Average daily viewing In min

Linear TV viewing remains very strong

Average daily viewing in min

213 218 217 217 223 227 226 234 239 246 244 239 234 230

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016

Linear + Non linear Linear

237 233


Average daily viewing In min

213233

Ind 4+

13 to 24

4 to 12

25 to 44

45 to 64

>65

TV viewing remains at very high levels

Source: Kantar Media

Age groups

Spanish TV industry: Audiences

230

Ind 4+ (+7 days)

351

302280

253

182191

126146

120143


Atresmedia: A leading communication group

Solid and clear group structure

OTHERS

ADVERTISING

Marketshare42%

Marketshare20%

Total Ad market

share19%


TV & Radio as main source of revenues

Source: Infoadex & internal estimates

Atresmedia: Market positioning

ANTENA 3

NEOX

NOVA

Onda CeroEuropa FMOnda Melodía

Atresmedia CineAtresmedia Digital

Atresmedia Diversification

Radio

Others

TV

Planeta-De Agostini:RTL:Imagina:Treasury stock:Free-float:

41.7%18.7%4.1%0.4%

35.2%

88%

9%

3%

LA SEXTA

MEGAATRESERIES

2015 Net

Revenues

€ 970m


830883

970

High single digit growth in Revwhile low single digit in OPEX

2013 2014 2015 2016 guidance

750 756805

810-820

Atresmedia: Revenues & OPEX evolution

CAGR +3%

Total Net Revenues

CAGR +8%

(≈+1%)OPEX

In € euros


>60% of ∆ rev drops at the EBITDA

Atresmedia’s operating leverageIn € mill

2013 rev 2013 EBITDA 2015 EBITDA 2015 rev

830

80

>60%operating leverage

166

970

Atresmedia: Operating leverage

+140 mill rev

+86 mill EBITDA


Balanced and varied TV offer

Atresmedia Television: Positioning

Male Female

55-64

4-12

Age

2016

27.1%0.8%1.8%

2.2%

2.5%

7.1%

12.8%


12.513.4 13.6 13.5

12.8

13.913.5

14.5 14.814.4

12.2

10.2 10.0 9.8 10.1

12.5

13.4 13.8

13.512.8

13.3

12.2

13.6

14.113.5

10.0

8.27.9 7.8

8.8

Antena 3: Stable audience ratings

Total Individuals24h

Commercial Target24h

Source: Kantar Media. Total Individuals (4y+)

Atresmedia Television: TV audiences by core channel

Source: Kantar Media• 2012-2015: Commercial Target (16-54 y)• *2016: Commercial Target (25-59 y)


4.9

6.0

7.2

7.4

7.16.0 6.0

6.77.2 6.5

9.5

8.57.8

7.3

7.2

5.8

6.67.9 8.1

8.17.6 7.4

8.2 8.4

7.66.8

5.85.2

4.85.3

La Sexta: The best growth story




Atresmedia Television: TV audiences by second channel



18.9

16.7 16.7 16.7 16.8

28.1 29.030.7 31.0

30.2

25.8

28.8 27.726.8 27.1

15.913.8 13.6 13.4

14.4

30.9 31.433.3 33.6

31.0

28.0

31.030.0 29.2 29.7

Atresmedia TV: Solid ratings despitelosing 3 channels as of May 2014




Atresmedia Television: TV group audiences



Audience: In-house vs external production

90% of most viewed contents are in-house, excl. sports

In-house 56%

3rd parties

44%

In-house vs externalTop 50 programmes (2016)

In-house 90%

3rd parties

10%

Including sports Excluding sports


Programming costs: In-house vs external production

In-house 25%

3rd parties

75%

2/3 of the programming costs are internally produced

In-house 75%

3rd parties

25%

In-house vs external programming costsIn broadcasting hours

In-

house

64%

3rd parties

36%

Weighted average(based on audience per channel)


Programming costs: In-house production

Direct sales to Broadcasters

In-house production: Velvet, a case study

FTA TV

Online

>20 countries

Atresmedia’s seriesReleased in 20143 seasons to date43 episodes

Production company:Bambú Producciones

Plot summary: Lovestories around GaleríasVelvet, one of the mostprestigious fashionstores in the Spain ofthe late 1950s.

Atresmedia’sPay TV channels

>24mill potential

households

3.8 mill viewers avg21% audience (+4 yrs)

>23.8 mill videos downloaded


Atresmedia Radio: 18% market share

Atresmedia Radio: Positioning & Strategy

# 3 talk radio1.9 mill listeners

# 3 music radio1.9 mill listeners

#3 radio player in Spain

4.1 million listeners

18% market share

Source: EGM Q2 16 yearly averageMarket Share: Infoadex & internal estimates

New music radio

274k listeners


Sound recovery from 2013 levels but still far behind fromaverage and peak levels

Gross Radio Ad market In € mill

Source: Infoadex

* consensus

Spanish Radio industry: Ad market

6%13%

4% 7%

-5%

-16%

2%

-4%

-14% -11%

4%8%

2-3%

508

678

537 549

404 420

454 ≈ 465

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e*

% yoy Gross Radio Ad market

Average: 530

-12%

-31%


Atresmedia Radio: 4.2 million listeners

Atresmedia Radio: Audiences

Source: EGM Surveys Monday to Friday (.000) ( Moving average).

Thousand of listeners

4,849 4,8344,981 4,954 4,837

4,5524,319

4,119 4,153

2,623 2,602 2,649 2,662 2,6032,368

2,1361,902 1,920

2,017 2,020 2,077 2,024 1,981 1,954 1,943 1,943 1,947

209 212 255 268 253 230 240 274 286

1st 14 2nd 14 3rd 14 1st 15 2nd 15 3rd 15 1st 16 2nd 16 3rd 16


Atresmedia Digital: Positioning & Strategy

Websites & Verticals

• TV/Radio/News• > 17 mill unique

users /month• >13 verticals

ATRESPLAYER

• Long form video platform

• 7.0 mill app downloads

• 3.2 mill registeredusers

• AVoD, SVoD and TVoD

MCNs

• Short form video platform

• Atrestube• Flooxer

Present in any possible source of audience & revenues


Atresmedia Digital

Source: ComScore

7.9

9.6

12.2

2015

2014

+54%

Top 100 Spain Ranking(Monthly avg)

Source: ComScore 100 top properties MPMMX

#29th

#17th#11th

#11th

2013 2014 2015

4.3 mill uu

7.7 mill uu

9.6 mill uu

Unique users(Monthly avg)

Sound growth in unique users yoy

12.2 mill uu

2016

2016


Atresmedia Digital: Atresplayer

Atresplayer: Atresmedia’s OTT offer


Developing new non ad-based media initiatives

Atresmedia Diversification: Positioning & Strategy


≈ 17 mill subscribers ≈ 15 mill subscribers

(Atresmedia’sbest-series channel)

(Antena 3’s premiumcontent channel)

(Celebrity & Life-style channel)

Atresmedia Diversification: International

≈ 7 mill subscribers

International: Near 39 mill subscribers at 9M16

≈7 mill

≈30 mill

≈2 mill


Atresmedia Diversification: Media for Equity

Media for Equity: Exploring new business models

Media for Equity

Exit in 2016


Medium term goals: TV & Radio

Television and Radio’s EBITDA margin on track

EBITDA Margin EBITDA Margin

2013

404

Market Gross Ad revenues (€ mill) & EBITDA Margin

2013

1,703

2014

1,890

7%15%

17%≈25%

2014

420

21%22%

24%≈25%

Source: Kantar Media & Atresmedia’s financial results

2015

2,011 2015

454

≈2,400

/2,500 ≈500/

525


Other non-ad based revenues to double

≈10%

2017

≈5%

2014

x2

Medium term goals: Other revenues

≈7%

2015

Other revenues than TV & Radio as % of Total Revenues


Debt at target level and dividend policy according to plan

Dividend policyTotal Net Debt Target (€ mill)

€ 100 mill

€ 150 millPayout ratio ≥80%

185

134

158

2014 dividend: 0.2€/sh96% payout ratio

2015 dividend: 0.36 €/ sh82% payout ratio

Long termtarget

Medium term goals: Financials


Back up: 2015 & 9M 16 Financial Results

Back up


Net Revenues 970.2 883.2

EBITDA 165.7 127.7

Net profit 99.2 46.7

FY15 FY14

+9.8%

+29.8%

YoY

+112.4%

OPEX 804.5 755.6 +6.5%

Atresmedia

FY15 Results in € mill: P&L

EBITDA Margin 17.1% 14.5%

Net profit Margin 10.2% 5.3%

Source: Atresmedia’s financial statements

EBIT 144.6 111.2 +30.0%

EBIT Margin 14.9% 12.6%


Total Net Rev. 857.4 785.3

EBITDA 133.5 103.4

EBIT 118.8 89.6

FY 15 FY 14

+9.2%

+29.1%

YoY

+32.6%

OPEX 723.9 681.9 +6.2%

Atresmedia Television

FY15 Results in € mill: P&L



Source: Atresmedia`s financial statements



EBITDA 21.8 17.6

EBIT 20.0 15.8

FY 15 FY 14

+10.6%

+24.2%

YoY

+26.5%

OPEX 68.0 63.6 +6.9%

Atresmedia Radio

FY 15 Results in € mill: P&L





Contribution to consolidated group

Atresmedia: “Others” Division

Net Revenues 22.9

EBITDA 10.3

FY 15 FY 14€ mill

16.7

6.7

Net revenues split


Others* 56%Films

26%

Events 18%

*Others ( Internet, Editorial, new initiatives…)

OPEX 12.6 10.0

FY 15 Results in € mill: P&L



EBITDA 151.4 119.5

Net profit 101.5 69.3

9M 16 9M 15

+6.1%

+26.7%

YoY

+46.4%

OPEX 588.7 578.4 +1.8%

Atresmedia

9M 16 Results in € mill: P&L


Net profit Margin 13.7% 9.9%


EBIT 138.1 103.1 +34.0%



Total Net Rev. 660.9 617.5

EBITDA 128.8 100.1

EBIT 117.3 89.3

9M 16 9M 15

+7.0%

+28.7%

YoY

+31.4%

OPEX 532.1 517.4 +2.9%

Atresmedia Television




Source: Atresmedia`s financial statements



EBITDA 14.6 14.4

EBIT 13.1 13.0

9M 16 9M 15

-9.5%

+1.2%

YoY

+0.4%

OPEX 44.2 50.6 -12.6%

Atresmedia Radio






Financials

Contribution to consolidated group net of eliminations

Atresmedia: Others Division

Net Revenues 20.5

EBITDA 8.0

9M 16 9M 15€ mill

15.5

5.0

Net revenues split


Others* 57%Films

21%

Events 22%

*Others (Internet, Editorial…)


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,

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(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

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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.

Investor Relations Department

Additional information

Phone: +34 91 623 46 14

E-mail: [email protected]

Web: www.atresmediacorporacion.com

feb17 santander iberian conference atresmedia...jun 27, 2017 · roadshowback up_mar...

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