GRUPO ANTENA 3. Presentation to investors Global Telecom & Media Conf. Bank of America Merrill Lynch. May

Transcription

1 GRUPO ANTENA 3 Presentation to investors 2012 Global Telecom & Media Conf. Bank of America Merrill Lynch May

2 Antena 3 Group at a glance Antena 3 Group One of the largest communication groups in Spain Onda Cero Europa FM Onda Melodía Radio 11% Others 6% 2011 Total revenues 805 M A3 Films Movierecord A3 eventos Unipublic 83% TV ANTENA 3 NEOX NOVA NITRO Planeta-De Agostini: RTL: Treasury stock: Free-float: 44.6% 20.5% 7.9% 27.0% 2

3 Antena 3 Group at a glance Antena 3 s market share TELEVISION RADIO Solid market position in TV and Radio % 1 7 % Market share Source: Infoadex 3

4 1 SPANISH TV SECTOR 4

5 Advertising market evolution in Spain Total Ad & TV market evolution In mill Ad market is currently at 2001 levels CAGR +10% CAGR -16% CAGR -3% Total Ad market TV Ad market Source: Infoadex 5

6 Advertising market across Europe TV Ad market evolution in Europe In index terms Spanish TV Ad market, very negative evolution since Source: Internal estimates 6

7 TV advertising vs GDP TV Ad market vs GDP % yoy 350 Spanish Ad market has overreacted to GDP drop GDP TV Ad 150 Total Ad % Ratio TV Ad/GDP 0.20% Source: Infoadex for TV Ad + BdE for GDP. In nominal terms. 7

8 Advertising market in Spain by medium Ad market by medium TV maintains its leadership among media 40,1% 28,3% TV Press 40,6% 17,6% 10,9% 9,0% 1,3% Magaz Radio Internet 16,3% 9,5% 6,9% Source: Infoadex 8

9 TV Advertising market by sector TV Ad market by sector Q1 12 yoy Weight Beauty -11% 18% Food -8% 17% Significant declines across the board Automotive Telecom -35% -13% 8% 15% Retail -24% 9% Finance 7% 13% Beverages -31% 2% Others -24% 19% Source: Internal estimates 9

10 TV Advertising market evolution Gross ad revenues (% yoy) TV Ad market by quarter 12% Negative trend continues -19% -11% 2% 6% -3% 1% -14% -8% -15% -18% -26% -34% FY09=-23% FY10=+4% FY11=-9% Source: Infoadex 10

11 TV: best competitive position Competitive position by medium 89% Coverage by media % population 4 TV, the highest coverage and the best price 59% 49% 37% 43% CPT by media In /1,000 impacts 12,6 6,6 7,4 2,5 2,5 TV Radio Magazines Press Internet Source: Coverage: 3 rd EGM survey 2011; CPT 2011e (Cost per thousand): Internal estimates 11

12 TV viewing Average daily viewing in min TV viewing TV viewing is still increasing min/viewer Source: Kantar Media 12

13 TV: competitive landscape at march 2012 Competitive position by TV player 44% 4 High competition both in market and audience share Market share 34% 27,4 10% 4% 7% 0% 20,4 17,9 17,4 6,9 10,0 Audience share OTHER Source: Kantar Media & Infoadex 13

14 TV audience shares Public vs Commercial FTA TVs In % Commercial FTA players gaining audience share from public broadcasters 49,7 +16pc 50,5 52,5 51,8 52,2 +22pc 33,6 33,2 30,9 31,5 30,4 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Source: Kantar Media Audience share 24h; Total Individuals: 4+ 14

15 2 ANTENA 3 S PERFORMANCE 15

16 Antena 3 vs TV Ad market A3 vs TV Ad market Gross ad revenues (% yoy) Three consecutive years outperforming TV Ad market -10% 6% 20% 2% 24% 12% 18% 6% 12% -3% 6% 1% -3% 4% Market Antena 3-8% -6% -11% -24% -29%-19% -8% -14% -15% -18% -26% -34% Q1 09 Q2 09Q3 09Q4 09 Q1 10Q2 10Q3 10 Q4 10Q1 11Q2 11Q3 11 Q4 11Q1 12 Source: Infoadex 16

17 Antena 3 vs its peers Ad market share In % Q112 Q111 30,2 34,3 +4.1pp Antena 3, best in class Q112 Q111 44,1 44,0 +0.1pp Q112 Q111 10,5 11,7-1.2pp Q112 Q111 7,0 9,6-2.6pp Source: Infoadex 17

18 Antena 3 s performance Antena 3 s performance Market share x Power ratio 34,3% The highest market share over the last years 26,2% 1.3x Audience share 28,3% 26,3% 24,1% 1.3x 1.3x 1.4x 22,4% 24,6% 1.3x 1.5x 30,5% 27,9% 1.8x 1.7x 1.9x 20,8% 21,3% 19,6% 17,8% 17,0% 16,6% 15,8% 17,1% 17,9% Q1 12 Source: Infoadex + Kantar Media. 18

19 Antena 3: TV audience shares Antena 3 s audience by quarter In % Improvements in Antena 3 s audience quarter by quarter ,9 17.7* +6% +10% 16,8 16,1 15,1 15,2 17,4 16,2 18,1 16,7 +8% 17,1 15,8 Q1 Q2 Q3 Q4 FY Source: Kantar Media Audience share 24h; Total Individuals: 4+ Q2 12: Data at May 27th 19

20 Antena 3: TV audience shares Audience Share yoy In % Antena 3, more than 1pp gain in audience yoy 25,6 22,8 16,5 +1.6pp -2.7pp +1.3pp 27,2 20,1 17,8 10,8 7,7-0.7pp -0.7pp 10,1 7,0 Jan-May 11 Jan-May 12* Source: Kantar Media Audience share 24h; Total Individuals: 4+ *Jan May 12 at May 27th 20

21 Antena 3 Radio (Uniprex) Listeners evolution yoy Antena 3 Radio, upward trend over the last two years TOTAL +1 million listeners 4,323k 4,033k 4,123k 3,903k 3,516k 3,649k 3,338k st 10 2nd 10 3rd 10 1st 11 2nd 11 3rd 11 1st 12 Source: EGM Surveys Monday to Friday (.000) ( Moving average) 21

22 Antena 3 Multimedia Relevant figures in A3 Multimedia In mill Unique Users +23.0% Video streams +21.3% Sound operating figures on the internet division 6,9 8,5 52,9 64,2 Monthly Avg Jan-May 11 Monthly Avg Jan-May 12 Monthly Avg Jan-May 11 Monthly Avg Jan-May 12 Source:OJD Nielsen Market Intelligence / Smartadserver 22

23 Antena 3 Multimedia Value chain for A3 s rights NATIONAL FICTION (In house) Maximizing rights value at every single window Pre view Free TV Pay per view Share: 18% Post viewed Catch up (Ads) Premium (Pay) In house + Third party rights (Pay) DVD / Merchandising >1,500 titles Agreements with majors in non-exclusive terms International sales 23

24 New initiatives New initiatives Exploring no ad-based new business lines Video on line (own production & USA contents) New business lines Ticketing Events organiser (concerts, sports events, ) Gambling (virtual casino) 24

25 3 ANTENA 3 + LA SEXTA: NO BRAINER DEAL 25

26 A winning combination: Antena 3 + La Sexta Leader position in Spain Clear market rational Combined group: 42% TV market share 25% audience share 8 FTA TV channels c20% Total Ad market share Strong potential to optimize TV Ad market share Unique move in Europe Strong value creation La Sexta`s attractive valuation: 4-channel multiplex 7.6% audience 11.4% TV ad share Significant synergies (revenues, costs & fiscal) 26

27 Antena 3 + La Sexta: Regulatory process December January February March April May June 14 December Integration Agreement signed We are here Legal merger Ministry of Industry Approval (23 December) Anti-Trust Authority Phase I (Antena 3 provides information) Anti-Trust Authority enters in Phase II (22 march) Anti-Trust Authority Phase II (Market test) Anti-Trust Authority expected approval 27

28 Unique opportunity in European FTA landscape Competitive position post deal 44.1% 44.8% Market share 27,4 34.3% 10.5% 4.1% 24,8 7.0% 0% 20,4 17,9 17,4 Audience share 6,9 10,0 OTHER Source: Kantar Media & Infoadex (Q1 12) 28

29 Transaction overview Acquisition of 100% of la Sexta (by way of merger) Initial delivery of 15.8 MM(1) of Antena 3 s Shares (equivalent to 7.0% of the Combined Entity) Maximum total assumption of 122 MM as negative working capital plus net financial debt Earn out mechanism: Additional 7% of the Combined Entity (delivered in treasury shares) Valid for Triggered at certain level of Combined Entity s PBT Additional considerations: Lock-up period of 1 year Transaction expected to close by June 2012 upon regulatory approvals Note 1.Comprised of 13.4 M common shares of new issuance, 1.2 MM non-economic shares (convertible into common shares 24 months after the Effective Integration Date) of new issuance and 1.2 MM of existing treasury shares 29

30 Significant synergies expected 60% Full utilisation of advertising capacity Reallocation of targets to different channels 50% Revenues Optimization of audience targets Expected synergies 40% Optimisation of commercial policy across all channels of the Combined Entity MM (fully as of 2013) 50% Cost 60% Decrease in production costs Reduction of overheads, including personnel costs 40% Better utilisation of content and programming rights Additional considerations: Synergies exclude any possible decision on La Sexta s current sports rights Amount does not include benefits from tax and leverage optimization Estimated one-off implementation costs of 10-15MM in

31 Overview of la Sexta x ~2 259 MM (2011) Revenues 144 MM 11.4% (2011) Advertising Share 4.0% x 3 x >2 7.6% (2011) Audience Share # of Channels 3.0% 1 Channel x 4 4 Channels (1) 2007 Today Note Leased to Imagina 31

32 La Sexta`s Product Positioning Today Attractive Programming Grid Provides Significant Growth Potential High Quality Fiction and Films 8% 9% Attractive Audience 9% 14% Stable Entertainment Content 6% 6% Programming Grid Potential for Audience Share Growth 9% High Audience Share Events 33% 18% 15% Strong Non-Cyclical Content 5% Information 6% 5% Differentiated Target Audience 4% Source: Kantar Media % Audience Share excluding re-runs (average 2011) 32

33 Most complete offering in Spanish FTA TV Additional Channels Age (documentaries) (movies) 4-12 Male Female 33

34 Leading communication group NEW GRUPO ANTENA 3 TV RADIO OTHERS (1) ADVERTISING Note Leased to Imagina 34

35 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. 35