Annual Corporate Report 2017 Indexíndice Iv Annual Corporate Report 2017 V 9 80 172 Introduction Governance Business About Model Model This Report
Total Page:16
File Type:pdf, Size:1020Kb
RPORAT L CO E RE A PO NU R N T A 2 0 17 Non-financial information report 2017 ANNUAL CORPORATE REPORT 2017 INDEXÍNDICE IV ANNUAL CORPORATE REPORT 2017 V 9 80 172 INTRODUCTION GOVERNANCE BUSINESS ABOUT MODEL MODEL THIS REPORT Letter from the Chairman VI Company Structure 10 Strategy 81 Scope 173 Letter from the Chief Executive Officer VIII Corporate Governance System 16 Business model 84 International Standards 173 Business Context 3 Risk Management 25 Key Success Elements 85 Preparation of this Report 173 Key Performance Indicators 8 Data Protection 42 Other Performance Indicators 86 Materiality analysis 174 Cybersecurity 44 Audiovisual Business 89 Dialogue 178 Supply Chain Management 46 Advertising Business 124 External Assurance 178 Content Management 52 Workforce 129 GRI G4 Content Index 180 Corporate Communication Management 62 Shareholders Value 144 Glossary 190 Advertising Management 65 Economic and Financial Results 150 Directory 192 Team Management 68 Tax Transparency 151 Shareholders and Investors relation Social Cash Flow 155 Management 75 Value for Society 156 Stakeholders Relations 76 Global Compact Compliance 160 INTRODUCTION Participation in Public Policy Development 78 Commitment with the Sustainable Participation in Corporate Responsibility Development Goals 161 Initiatives 79 Environmental Performance 163 MODEL GOVERNANCE This report is available online for computer, smartphone and tablet devices (interactive pdf MODEL Navigating the report Further information BUSINESS ready to download). Go to previous next page print search send Direct access to chapter index page Access to further information GOVERNANCE BUSINESS ABOUT THIS INTRODUCTION MODEL MODEL REPORT REPORT ABOUT THIS PRESENTACIÓNINTRODUCTION VI ANNUAL CORPORATE REPORT 2017 LETTER FROM THE CHAIRMAN Alejandro Echevarría Dear shareholders, Chairman It is a real pleasure to present the results for 2017, a year in which, once Our evolution on the stock market has been adversely affected by again, Mediaset España has maintained its leadership among Spanish various exogenous fluctuations, both internationally, and due to national television companies from all points of view, whether in terms of problems, the latter related to the political and economic instability IN RELATION TO television audience, share and advertising revenue, operating margins, caused by the Catalan elections. Even so, the earnings per share has THE TELEVISION profitability, etc. been €0.60, 17.6% higher than that in 2016 (€ 0.51). ITSELF, MEDIASET During this period the economic evolution of the country has been positive, In relation to just the area of television, Mediaset España has ended ESPAÑA HAS especially regarding the recovery of consumption and employment; a 2017 as the no.1 company in audiences for the seventh year in a ENDED 2017 context in which television advertising continues to improve, revealing row, it is also an absolute reference when it comes to online media AS THE NO.1 itself as the main means of commercial communication. consumption and social impacts. Our channel’s average audience was COMPANY IN INTRODUCTION a 28.7% share. In this context, Mediaset España’s performance has been excellent, as AUDIENCES FOR shown by a brief review of its main economic figures: achieving a net THE SEVENTH profit of €197.5 million; with a 15.5% increase since 2016; an EBITDA YEAR IN A ROW MODEL of €262.2 million, which is a margin of 26.3% over total net revenues, GOVERNANCE and an 8.8% increase since 2016; an EBIT of €245.3 million, showing a 9.3% increase since 2016 and a 24.6% margin. MODEL BUSINESS REPORT ABOUT THIS VII ANNUAL CORPORATE REPORT 2017 In short, at a time when alarmist voices are increasingly being heard 2017 has been a year for the promotion of diversity within the governing talking about the change in audio-visual habits and the movement of bodies of Mediaset España. Following the latest appointments approved FREE TO AIR advertising investment budgets to other emerging media, free to air in the Board of Directors, the percentage of female directors has risen TELEVISION television continues to have an enviable vitality. from 7.70% up to 23%, close to the objective established by the CONTINUES TO corporate governance recommendations, also significantly increasing Undoubtedly, society changes, and therefore, the content offers their participation in the company’s governance committees. BE THE MAIN change, new competitors appear, different, but new. But it is also true, DRIVER OF THE without a doubt, that free to air television continues to be the main driver I do not want to miss the opportunity to thank our audience who day MEDIA MARKET, of the media market, with 99% penetration in society, giving rise to an after day enjoy our content, to the advertisers who choose our channels average use per inhabitant of 225 television minutes a day, being the as a vehicle for their commercial communication, to the shareholders WITH 99% fundamental pillar of Spanish audio-visual production, more than two who entrust us with their expectations, and to our employees, who are PENETRATION IN thirds of Spanish produced European projects is financed by free to air our companions on this journey. With all of them I want to share the SOCIETY, GIVING television companies. With this, it is impossible to ignore that, in recent encouragement that produces the achievement of the results presented RISE TO AN years, the majority of successful films in Spain have been promoted, here. financed and produced by television companies, most notably Mediaset AVERAGE USE PER España. INHABITANT OF 225 TELEVISION For another year we have renewed our commitment to the United MINUTES A DAY Nations Global Compact together with its Ten Principles and we have made progress in the 2030 Agenda for Sustainable Development by supporting the Sustainable Development Goals, as reflected throughout our 2017 Report, which I am pleased to present to you. A Report that combines economic-financial, good governance and ethics, social and environmental information, as well as the impact of our activity on society, the main risks map and the analysis of relevant matters for our stakeholders; financial and non-financial information from a long- INTRODUCTION term perspective that shows our stakeholders all the components of creating company value and how it can be affected by future risks and opportunities. MODEL GOVERNANCE MODEL BUSINESS REPORT ABOUT THIS VIII ANNUAL CORPORATE REPORT 2017 LETTER FROM THE CEO Paolo Vasile It is a real honour to be able to start this message in the same way as Also just from a television point of view we have renewed our leadership, Chief Executive Officer last year, saying that Mediaset España has revalidated its leadership for the seventh consecutive year: the Mediaset España’s family of among Spanish television companies in terms of audiences, market channels has reached a cumulative audience of 28.7% and has also MEDIASET share, advertising revenue, operating margins and profitability, achieving been the first option, both in commercial target (30.4%), and in prime ESPAÑA HAS its best annual operating results since 2008. Nothing new in this regard, time (28.5%); as well as being the reference in young people aged 13 to LED TELEVISION but what an enviable and satisfying routine! 24 years old (35.1%) also for the seventh year. ADVERTISING Indeed, the company’s great commercial potential, leader in advertising In this context, Telecinco (13.3%) continues to be, for the sixth INVESTMENT, investment since 2004, together with the effective management of its consecutive year, the most viewed channel, also being the first option WITH A MARKET resources, have led Mediaset España to increase its net profit by 15.5% in commercial target (12.5%) and in prime time (13.5%). And, for its compared to 2016, reaching €197.5m. part, Cuatro (6.2%), is the third private national channel in commercial SHARE OF 43.3%, target (7.2%), consolidating its strength among the millennial audiences INCREASING INTRODUCTION Mediaset España has led television advertising investment, with a (7.4%). ITS GROSS market share of 43.3%, increasing its gross advertising revenues in its ADVERTISING own media to €946.4m; a situation which, together with the savings Our flagship channels, along with the rest of our channels (Fiction REVENUES IN ITS generated in operating costs, has allowed Mediaset España to achieve Factory 3.1%, Divinity 2.2%, Energy 2%, Boing 1.3%, and Be Mad MODEL an EBITDA of € 262.2m (+ 8.8% compared to 2016), with a margin over 0.6%), make up our country’s most complete and integrated television OWN MEDIA TO GOVERNANCE total revenues of 26.3%; and an EBIT of € 245.3m (+ 9.3% compared offer. €946.4M to 2016), with a margin over total income of 24.6%. All this, with a truly remarkable net financial position: €135.3M after remunerating our shareholders with a total of €275.7m (€ 100m in the repurchase MODEL of treasury shares throughout the year and € 175.7 million paid out in BUSINESS dividends). REPORT ABOUT THIS IX ANNUAL CORPORATE REPORT 2017 In the cinematographic area, Mediaset España has been providing good These initiatives, which are related to the digital area that I have just examples of how to turn risks into opportunities, because, not only does referred to, are a demonstration of the commitment to adaptation and it comply with the legal obligation to finance Spanish cinema, but also, diversification that Mediaset España is addressing, that the movement ANOTHER AREA IN for the fourth year in a row, Telecinco Cinema has become the leader in demonstrates itself that it is working, truthfully, the only way to not to be WHICH WE HAVE Spanish film production, obtaining a market share of almost 48% and 8 surprised and overwhelmed by change, is to be part of it. INNOVATIVELY AND million viewers with the premiere of the four highest grossing and most watched films of 2017: “Tadeo Jones 2”, “Perfectos Desconocidos”, It is undeniable that new audio-visual content offers have emerged, SIGNIFICANTLY “Es por tu bien” and “The secret of Marrowbone.” particularly those coming from the OTT platforms.