fourth quarter results 2008 · 4q07 4q08 ‐83 ‐109 4q07 4q08 2 0 0 9 cable tv & internet...
TRANSCRIPT
Grupo Clarín
(GCLA)
Fourth Quarter Results 2008March 11, 2009
Investor Relations – http://www.grupoclarin.com/ir
Disclaimer
F d L ki St t tForward Looking Statements
Certain information included in this presentation may contain projections or other forward‐looking statements regarding future events or the future financial performance of Grupo Clarín.g g g p pYou can identify forward‐looking statements by terms such as “expect”, “believe”, “anticipate”,“estimate”, “intend”, “will”, “could”, “may” or “might” the negative of such terms or other similarexpressions. These statements are only predictions and actual events or results may differ
t i ll G Cl í d t d t k i t d t d t k bli ti t d t
2 0 0 9
materially. Grupo Clarín does not undertake or intend to undertake any obligation to updatethese statements to reflect events and circumstances occurring after the date hereof or toreflect the occurrence of unanticipated events. Many factors could cause the actual results todiffer materially from those contained in Grupo Clarín’s projections or forward‐looking
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statements, including, among others, general economic conditions, Grupo Clarín’s competitiveenvironment, risks associated with operating in Argentina, rapid technological and marketchange, and other factors specifically related to Grupo Clarín and its operations.
E S U L T S ‐M A
4 Q 0 8 R E
2
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session3
4 Q 0 8 R E
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session4
4 Q 0 8 R E
2007 & 2008, qoq figures
Income Statement
458+15%
28 2%1 625+28%
Exhibit 1: Net Sales% qoq, AR$ MM
Exhibit 2: Adjusted EBITDA1
% qoq, AR$ MM
99100478 51399
458 28.2%
31.5%
432
324
234
42381,266
1,625
100
244 311354
234
722 93768%
‐44Q07 4Q08
‐109‐834Q07 4Q08
2 0 0 9
Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations EBTIDA Margin
Net Sale Comparison EBITDA Comparison+24%A
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Dec ‐ 07
5,736Dec ‐ 08
Net Sale Comparison
4,384+31%
1.675
1.351Dec ‐ 07
Dec ‐ 08
EBITDA Comparison
E S U L T S ‐M A
1 We define Adjusted EBITDA as net sales minus costs of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization)
5
4 Q 0 8 R E
Source: Company Information
2007 & 2008, yoy figures
Income Statement
1 675+24% 29.2%5 736+31%
Exhibit 3: Net Sales% yoy, AR$ MM
Exhibit 4: Adjusted EBITDA1
% yoy, AR$ MM
320
1591
341,351
1,675+24%
30.8%166
1384,384
1,038
5,736+31%
286140
784138
1,174
1,520
8901,196
2,6133,417
71%
2 0 0 9
2007 2008‐405‐325
,
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2007 2008
Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations EBTIDA MarginE
S U L T S ‐M A
1 We define Adjusted EBITDA as net sales minus costs of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization)
6
Digital Content & Others Eliminations EBTIDA Margin
4 Q 0 8 R E
Source: Company Information
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session7
4 Q 0 8 R E
Financial DebtExhibit 5: Key Financial Ratios 873 MM USD t 3 45 ARS/ USDExhibit 5: Key Financial RatiosAR$ MM
873 MM USD at 3.45 ARS/ USD
FY08 FY07 % ch. yoy 9M08 % ch. qoq Total Gross DebtOutstanding* 3.013,3 2.981,2 1,1% 2.915,1 3,4%Total Gross Debt Incl. Interests 3.057,4 3.018,4 1,3% 2.978,8 2,6%Total Net Debt 2.589,8 2.452,9 5,6% 2.552,2 1,5%
Exhibit 6: Debt Profile
Net Debt/ AdjustedEBITDA 1,5x 1,8x ‐14,8% 1,6x ‐2,1%% US$ Debt 83,6% 80,4% 3,9% 81,3% 2,8%
160
873Seller Notes – Grupo Clarín (1)
Seller Notes ‐ Cablevisión (1)
Others
Exhibit 6: Debt ProfileUS$ MM, Balance Sheet
2 0 0 9
16.4% ARS
27374747
798
160 149
65
132109
79 81
Others
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74
27487 76
65
1
E S U L T S ‐M A
2009 2010 2011 2012 2013 2014 2015 2016 2017 Total
8
4 Q 0 8 R E
Source: Company Information
* Includes Bank Overdraft. Does not include: Interests and Related Parties.
(1) Reflects the option to extend USD 102 MM Grupo Clarín’s FRN and USD 68 MM Cablevisión’s Seller Notes originally maturing in September 2009
Financial DebtExhibit 7: 2009 Debt Profile as of March 11 2009(1)
Seller Notes – Grupo Clarín (1)
Others
Exhibit 7: 2009 Debt Profile as of March 11, 2009(1)US$ MM, Balance Sheet
2009: 86 MM USDIn pesos (33%): 28 MM USD
186
OthersARTEAR: 4 MM USDAGEA: 22 MM USDCIMECO: 3 MM USD
33% ARS
1
84
11
39
1125
In dollars (67%): 58 MM USDSeller Notes GC: 1 MM USDMC‐CV Bonds: 18 MM USDGCSA 20 MM USD
Total 2009
1Q09 2Q09 3Q09 4Q09
2 0 0 9
GCSA: 20 MM USDOthers: 19 MM USD
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Total Debt 86 MM USD
2009 Outlook
E S U L T S ‐M A
(‐) Debt in ARS 28 MM USD Forward Contract 63 MM USD
(‐) Revolving Debt 20 MM USD Coverage (%) 166%
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Exchange rate = 3.45 ARS/ USD. Source: Company Information.
(1) Reflects the option to extend USD 102 MM Grupo Clarín’s FRN and USD 68 MM Cablevisión’s Seller Notes originally maturing in September 2009
(=) Debt in USD 38 MM USD
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session10
4 Q 0 8 R E
Cable TV & Internet Access IRevenues & Costs
722
Exhibit 8: 4Q07AR$ MM
Exhibit 9: 4Q08AR$ MM
93730%722
324
937
401
30%
24%
154 22546%33.8% 33.2%
244 31127%
2 0 0 9
Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA
A R C H 11
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Dec ‐ 07
Net Sale Comparison
2,613+31%
890Dec ‐ 07
EBITDA Comparison +34%
E S U L T S ‐M A
11EBTIDA Margin
3,417Dec ‐ 08 1.196Dec ‐ 08
4 Q 0 8 R E
Source: Company Information
Cable TV & Internet Access IRevenues & Costs
2 613
Exhibit 10: FY07AR$ MM
Exhibit 11: FY08AR$ MM
3 41731%2,613
1 123
3,417
1 461
31%
30%1,123 1,46130%
600 76127%34.1% 35.0%
2 0 0 9
890 1,19634%
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Net Sales Cost of Sales
Selling & Adm.
EBITDA EBITDASelling & Adm.
Net Sales Cost of SalesE
S U L T S ‐M A
Expenses
12
ExpensesEBTIDA Margin4
Q 0 8 R E
Source: Company Information
Cable TV & Internet Access IIKey Ratios
Exhibit 12: Cable Subs‘000s
+6%Cablemodem
+24%
Exhibit 13: Internet Subs‘000s
+1813,1913,022
+6%
+168 758
903
+24%939
+35%
+181
4Q07 4Q08
670
4Q07
903
4Q08
+219
Exhibit 15: Total ARPUAR$
Exhibit 14: Digital Subs(1)‘000s2
0 0 9
2007: 3022 2008: 3191 (+6%) 2007: 758 2008: 939 (+24%)
367+66%
79.898.5
+23%
+18.7
AR$000s
A R C H 11
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221 146
E S U L T S ‐M A
4Q07 4Q08 4Q07 4Q08
13
4 Q 0 8 R E
(1) In Argentina. Source: Company Information
2007: 75.3 2008: 91.7 (+22%)2007: 221 2008: 367 (+66%)
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session14
4 Q 0 8 R E
Revenues & Costs
Printing & Publishing I
432354
Exhibit 16: 4Q07AR$ MM
Exhibit 17: 4Q08AR$ MM
22% 432
229
354
169 35%
22%
103
229
86
35%
21%28 2%
99
103
100
21%
‐1%
28.2% 23.0%
2 0 0 9
Cost of Sales
Selling & Adm.
Expenses
EBITDANet SalesNet Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA
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pp
Dec ‐ 07
Net Sale Comparison
1,174+30%
286Dec ‐ 07
EBITDA Comparison +12%
E S U L T S ‐M A
15EBTIDA Margin
1,520Dec ‐ 08 320Dec ‐ 08
4 Q 0 8 R E
Source: Company Information
Revenues & Costs
Printing & Publishing I
1 5201 174
Exhibit 18: FY07AR$ MM
Exhibit 19: FY08AR$ MM
30% 1,5201,174 30%
805589 37%
395298 32%
2 0 0 9
320
395
286 12%
24.4%21.1%
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EBITDACost of Sales
Selling & Adm.
Net SalesNet Sales EBITDASelling & Adm.
Cost of SalesE
S U L T S ‐M A
ExpensesExpenses
16EBTIDA Margin4
Q 0 8 R E
Source: Company Information
Printing & Publishing IIKey Ratios
Exhibit 20: Key Ratios
2%+3%
426436‐2%
60.0% 61.7%
4Q07 4Q08 4Q07 4Q08
50.2% 47.8%‐5%
Circulation1 (‘000s) Advertising Share2
2 0 0 9
2007: 443 2008: 430 (‐3%) 2007: 60.0% 2008: 60.8% (+1%)
4Q07 4Q08A R C H 11
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4Q07 4Q08
Circulation Share2E S U L T S ‐M A
2007: 49.6% 2008: 48.0% (‐3%)
(1) Average number of copies according to IVC (including Diario Clarín and Olé), thousands per day(2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarín, company estimates
17Source: Company Information
4 Q 0 8 R E
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session18
4 Q 0 8 R E
Revenues & Costs
Broadcasting & Programming I
234 324
Exhibit 21: 4Q07AR$ MM
Exhibit 22: 4Q08AR$ MM
38%234
149
32438%
149 21645%
47
39
51
5747%19.9% 15.8%
9%
2 0 0 9
Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA
A R C H 11
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784Dec ‐ 07
Net Sale Comparison +32%
140Dec ‐ 07
EBITDA Comparison +13%
E S U L T S ‐M A
19EBTIDA Margin
1,038Dec ‐ 08 159Dec ‐ 08
Source: Company Information
4 Q 0 8 R E
Revenues & Costs
Broadcasting & Programming I
784 1 038
Exhibit 23: FY07AR$ MM
Exhibit 24: FY08AR$ MM
32%784 1,03832%
504 68937%
2 0 0 9
140
140
159
19036%17.9% 15.3%
13%A R C H 11
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Net Sales Cost of Sales
Selling & Adm.
EBITDA
159
Net Sales Cost of Sales
Selling & Adm.
EBITDA
13%
E S U L T S ‐M A
Expenses Expenses
20EBTIDA Margin
Source: Company Information
4 Q 0 8 R E
Broadcasting & Programming IIKey Ratios
‐15%‐4%
Exhibit 25: Key Ratios
44.5%37.8%
4%41.5%43.3%
4Q07 4Q08 ‐13% 4Q084Q07
35.6% 30.8%Prime Time1 Advertising Share2
2 0 0 9
2007: 42.4% 2008: 43.3% (+2%) 2007: 45.4% 2008: 41.5% (‐9%)
4Q084Q07
A R C H 11
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Total Time1
E S U L T S ‐M A
2007: 34.5% 2008: 33.5% (‐3%)
21
(1) Share of broadcast TV audience according to IBOPE for AMBA. Prime time is defined as Monday through Friday from 8pm to 12am.
Total time is defined as Monday through Sunday from 12 pm to 12 am(2) Company estimate, over adspend in Ps. in broadcast TV for AMBA region
Source: Company Information
4 Q 0 8 R E
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session22
4 Q 0 8 R E
Revenues & Costs
Digital Content & Others I
4538
Exhibit 26: 4Q07AR$ MM
Exhibit 27: 4Q08AR$ MM
19% 45
22
38
14
19%
63%
17 61%
27
‐152%8
20.0%
‐8.7%
2 0 0 9
Net Sales Cost of Sales
Selling & Adm
‐4
EBITDA
Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDA
A R C H 11
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Sales Adm. Expenses
138Dec ‐ 07
Net Sale Comparison +23%
34Dec ‐ 07
EBITDA Comparison
E S U L T S ‐M A
23EBTIDA Margin
169
138Dec ‐ 07
Dec ‐ 08 1
34Dec ‐ 07
Dec ‐ 08 ‐98%
Source: Company Information
4 Q 0 8 R E
Revenues & Costs
Digital Content & Others I
169138
Exhibit 28: FY07AR$ MM
Exhibit 29: FY08AR$ MM
23% 169
76
138
48
23%
58% 7658%
92
55 67%
24.9%
2 0 0 9
1‐98%34 0.3%
A R C H 11
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Net Sales Cost of Sales
Selling & Adm.
Expenses
EBITDASelling & Adm.
Expenses
Net Sales Cost of Sales
EBITDA
E S U L T S ‐M A
24EBTIDA Margin
Source: Company Information
4 Q 0 8 R E
2007 & 2008, yoy figures
CAPEX & Net Sales
Exhibit 30: Capex & Net SalesAR$ MM
5 736
1384,384
1661,038
5,736
2008 CAPEX Breakdown
784138
1,174
1,5207%
1%3%
41204
2,613576
2 0 0 9
6229103,417
848
88%
13.1%14.8%
‐325
51141
2007 2007
A R C H 11
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‐405
746
2008N t S l
2008C
88%
Net Sales Capex
Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingE S U L T S ‐M A Net Sales Capex
25
Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations Capex / Net Sales
4 Q 0 8 R E
Source: Company Information
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session26
4 Q 0 8 R E
Ownership Structure & Corporate Governance
Exhibit 31: Equity Participation at IPO1
%
Exhibit 32: Shareholder StructureNumber of Shares4
Controlling Shareholders 204,030,227
Goldman Sachs 26 198 157
20%
Free Float
Goldman Sachs 26,198,157
Free Float 57,190,200
• International 24,139,232 (42%)
9%
71%
GS3
2 0 0 9
Total 287,418,584
( )
• Local 33,050,968 (58%)ControllingShareholders2
71%
The original IPO allocation was 80% international and 20% local
A R C H 11
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1 Since the IPO, our shareholders and management acquired approximately 4.6 MM shares (8.0% of the free float)2 C t lli Sh h ld E ti H d N bl H t H M tt J A t i A d d L i R f l P liE
S U L T S ‐M A
2 Controlling Shareholders: Ernestina H. de Noble, Hector H. Magnetto, Jose Antonio Aranda and Lucio Rafael Pagliaro3 Goldman Sachs: GS Unidos, LLC; GS Private Equity Partners II Direct Investment Fund, LP; GS Capital Partners III; and GS Private Equity Partners 1999 Direct Investment Fund, LP; Tinicum GC Investors, LLC; Farallon GC Investors, LLC4 As of March 10, 2009
27
4 Q 0 8 R E
Source: Company Information
Agenda
Argentina – Macroeconomic Environment – Latest Events
Sales & EBITDA GrowthSales & EBITDA Growth
Financial Debt
Cable TV & Internet Access
Printing & Publishing
B d ti & P i2 0 0 9
Broadcasting & Programming
Digital Content & OthersA R C H 11
th, 2
g
Ownership Structure & Corporate Governance
E S U L T S ‐M A
Q & A Session28
4 Q 0 8 R E
Grupo Clarín
(GCLA)
Q & A SessionMarch 11, 2009
Investor Relations – http://www.grupoclarin.com/ir
Grupo Clarín
(GCLA)
Fourth Quarter Results 2008March 11, 2009
Investor Relations – http://www.grupoclarin.com/ir