GRUPO ANTENA 3 PRESENTATION TO INVESTORS
JP Morgan Cazenove CEO Media Conference
June 2011 1 WHO WE ARE
2 WHAT THE PLAYING FIELD LOOKS LIKE
3 HOW WELL WE ARE PLAYING THE GAME
2 Antena 3 – 1 WHO WE ARE...
...ANTENA 3 AT A GLANCE
3 Antena 3 – Antena 3 Group at a glance
Antena 3 Group
Planeta-De Agostini: 44.6% RTL: 20.5% Treasury stock: 5.0% Free-float: 29.9% A3 Films One of the largest Movierecord Onda Cero Others A3 eventos communication groups Europa FM Radio Unipublic Onda Melodía 3% in Spain 11%
% on total ANTENA 3 revenues NEOX 2010 NOVA NITRO 86%
Television
4 Antena 3 – Antena 3 Group at a glance
Antena 3 market share
TELEVISION RADIO
Solid market position in TV and Radio
30% Market share 23%
Source: Infoadex Q1 11
5 Antena 3 – Antena 3 Group at a glance
Antena 3’
At June 24th= 5.06 €
Market cap € Consensus
Attractive multiples 7.4x
0.6x
P/E (2011*) 9.7x
Pay-out ratio 80% on net profit
8.2%
* Consensus
6 Antena 3 – 2 WHAT THE PLAYING FIELD LOOKS LIKE...
...ANTENA 3’
7 Antena 3 – Total advertising market (I)
Total Ad market evolution
In €
+43% 7,985 -30% Ad market is 0%
currently at 5,631 5,850 5,575 2003 levels
2003 2004 2005 2006 2007 2008 2009 2010 2011*
Source: Infoadex * Consensus
8 Antena 3 – Total advertising market (II)
Market share by media
41.6% TELEVISION 42.3% 39.5% TV keeps leading. NEWSP.& Radio stays stable MAGAZ. 27.3%
13.5% 9.1% RADIO 9.4% 8.4% OTHERS 7.6% 1.3% INTERNET
2003 2010
Source: Infoadex
9 Antena 3 – TV advertising market (I)
TV Ad market evolution
In €
3,469
TV Ad market similar 2,472 2,317 2,378 to Total market +50% -32%
0% New entrants + DTT
2003 2004 2005 2006 2007 2008 2009 2010 2011*
Source: Infoadex * Consensus
10 Antena 3 – TV advertising market (II)
TV Ad market vs GDP
2003=100
TV Ad/GDP 0.31% 0.23%
TV Ad market GDP overreacted to GDP drop
Total Ad TV Ad
2003 2004 2005 2006 2007 2008 2009 2010
Source: Infoadex for TV Ad + BdE for GDP. In nominal terms
11 Antena 3 – TV habits in Spain
TV viewing
Average daily viewing in min
+24 min/viewer 234 TV viewing is 227 226 still increasing 223
218 217 217 213 211 210 208
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Kantar Media
12 Antena 3 – Pay TV in Spain
Pay TV in Spain
In million households
22% 28% Penetration 78% 72% Low competition from Pay TV In % 6% 7%
Audience 94% 93%
2004 2010
FTA Pay TV
Source: Penetration: CMT (2010 data estimated); Audience: Kantar Media
13 Antena 3 – TV: best competitive position
Competitive position by media
88% Coverage by media
56% 50% 4 39% 37% TV, the highest coverage and the best price
13.3 10.0 CPT by media 8.2 In €
3.1 2.7
TV Radio Magazines Press Internet
Source: Coverage: 3rd EGM survey 2010; CPT (Cost per thousand): Internal estimates
14 Antena 3 – FTA TV offer
Changes in FTA TV offer
A3 Mediaset
Number of channels A3 Sexta
multiplied by 5 TL5 x5 Net TV Forta Veo TV TVE Forta
TVE
2003 2011
15 Antena 3 – Audience share by channel
Audiences 2011 YTD
14%
Clear audience 10% fragmentation
6%
2%
Source: Kantar Media
16 Antena 3 – Competitive landscape
Number of FTA TV players
In € million
3,469 TV Ad market
2,472 2,317 2,378 Number of players is adjusting to Ad market 8 7 6 6 4
Net TV/ Veo TV
2003 2011
Source: Infoadex
17 Antena 3 – Market share concentration
Market share by FTA TV players
Antena 3 / Mediaset 53% 75% Private FTA TVs Two main players hold 12% 75% market share La Sexta Veo TV/Net TV 2%
16% Forta 10% Public FTA TVs TVE 30%
2003 2011
Source: Infoadex
18 Antena 3 – Radio habits in Spain
Radio listening
Number of radio listeners in Spain (thousands)
+2.1 million listeners The highest number 24,174 of listeners ever seen 23,117
22,489 22,299 22,030 22,062 21,456 21,718
1ª 04 1ª 05 1ª 06 1ª 07 1ª 08 1ª 09 1ª 10 1ª 11
Source: EGM Moving Average
19 Antena 3 – 3 HOW WELL WE ARE PLAYING THE GAME...
...ANTENA 3’
20 Antena 3 – Antena 3’
A3 vs TV Ad market
% Ad revenues growth yoy 24% 20% 18% Antena 3 TV 12% 6% Nine consecutive 6% 12% quarters outperforming 6% TV Ad market -10% 2% 1% -3%
-24% -11% -29% -19% -26% TV Ad Market -34% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111
Source: Infoadex
21 Antena 3 – Antena 3’
Advertising market outlook
30.2% 28.3% 26.3% 27.9% 26.2% 24.1% 24.6% 22.4% The highest market 1.3x 1.3x 1.3x 1.8x share over the last years 1.7x 1.4x 21.3% 1.3x 1.5x 20.8% 19.6%
Market share 17.8% 17.0% 16.6% Power ratio 16.8%
Audience share 15.8%
2004 2005 2006 2007 2008 2009 2010 Q1 11
Source: Infoadex + Kantar Media
22 Antena 3 – Antena 3: Audience shares
Audience shares
In %
26.0 25.5 25.1 +0.4pc
A3, the best performance 24.7 23.5 22.9 -1.8pc in audience share 16.5 16.5 over the last year 15.1 +1.4pc
11.5 10.4 10.7 -0.8pc 7.7 6.8 6.7 +0.9pc
1H 10 2H 10 1H 11
Source: Kantar Media
23 Antena 3 – Antena 3, a well-balanced grid
Our programming grid
Talk shows Our best asset:
A varied and balanced grid Entertainment
News
Fiction & Cinema
24 Antena 3 – Advertising bundling: An unique commercial approach
Advertising bundling
55-64
Advertising bundling, Age a succesful strategy
4-12
Male Female
Advertising bundling
25 Antena 3 – OPEX evolution
Antena 3’
In real terms
CAGR: -0.4% 558 544
Group OPEX CAGR: +0.9% Discipline in costs 454 426
TV OPEX
2003 2004 2005 2006 2007 2008 2009 2010
Source: A3´s financial statements
26 Antena 3 – Flexibility in costs
Outsourcing process
A3’ A3’ 2009 2011 Product Product definition definition Ambitious outsourcing process achieved Content Content purchase purchase
Programming Programming
450 employees outsourced Production Outsourced services 10% avg cost services reduction in next years
27 Antena 3 – Antena 3’
A3´s performance vs Ad market
In € 3,469
TV Ad market 2,472 2,317 2,378 A3’ 878 Well positioned for
688 a recovery in Ad market 604
539 EBITDA margin 35% 21%
21% 569 ’ 536 543
426
2003 2004 2005 2006 2007 2008 2009 2010
Source: Infoadex + A3´s financial statements
28 Antena 3 – Antena 3 Radio (Uniprex)
Number of listeners
In ‘
4,190
x2 71 Antena 3 Radio, 1,588 record number of listeners 2,165
6
247
2,531
1,912
1st 05 1st 11
Source: EGM surveys
29 Antena 3 – Antena 3 Radio (Uniprex)
Antena 3 Radio’
Audience share Market share Antena 3 Radio, excellent position UNIPREX UNIPREX Others to gain size 16% Others 24% 23% COPE 14% 42% 1st 11 Q1 11
35% 46% SER SER
Source: EGM, 1st. Survey 2011, Infoadex
30 Antena 3 – Antena 3 Multimedia
Internet division
CONTENTS DISTRIBUTION EXPLOITATION
Revenue-based strategy INTERNET From TV ADV. in multimedia (in house REVENUES production) (i.e. Preroll)
MOBILE Exclusive OTHERS Content (i.e. Prepay, (i.e El Sótano) online game,..) SOCIAL NETWORKS
31 Antena 3 – Antena 3 Multimedia
In-house production exploitation
NATIONAL Internet Free Internet DVD / International FICTION pay TV pay post Merchandising sales Pay Share: Catch up 1st season In process per view 18% (Prerolls) on sale Rights ownership creates Online business opportunities game
Social networks
Exclusive Internet contents exploitation
“ ” Video stream (Prerolls)
32 Antena 3 – Antena 3 Multimedia
Internet division
In mill
5.7 46.1 4.8 Strong performance in every business indicator 3.5 26.3
13.4 +36% +96%
2009 2010 Q1 11 2009 2010 Q1 11
Unique Users Video streams (monthly avg) (monthly avg)
Monthly average Source: OJD/Nielsen Market Intelligence/ Smartadserver
33 Antena 3 – Conclusions
When the going gets tough, the tough get going
In pole position to ride the wave of Ad growth
Fit enough to do things our way
Antena 3, challenges are opportunities
34 Antena 3 – GRUPO ANTENA 3
Committed with Corporate Social Responsability: Back up slides
36 Antena 3 – Consolidated Group
Q1 11 Results in €
Q1 11 Q1 10 YoY
Net Revenues 203.8 192.9 +5.6%
OPEX 174.7 167.9 +4.1%
EBITDA 29.1 25.0 +16.2% EBITDA Margin 14.3% 13.0%
Net profit 19.6 15.9 +23.5% Net profit Margin 9.6% 8.2%
Source: Antena 3’
37 Antena 3 – Television division
Q1 11 Results in €
Q1 11 Q1 10 YoY
Total Net Revenues 174.5 169.2 +3.1%
OPEX 149.0 145.0 +2.8%
EBITDA 25.5 24.3 +5.0% EBITDA Margin 14.6% 14.3%
EBIT 22.6 21.5 +4.9% EBIT Margin 12.9% 12.7%
Source: Antena 3’
38 Antena 3 – Radio division
Q1 11 Results in €
Q1 11 Q1 10 YoY
Net Revenues 22.8 21.6 +5.2%
OPEX 17.0 16.5 +3.4%
EBITDA 5.7 5.2 +10.9% EBITDA Margin 25.2% 23.9%
EBIT 5.0 4.4 +14.5% EBIT Margin 22.1% 20.3%
Source: Antena 3’
39 Antena 3 – Additional information
Investor Relations Department
Phone: +34 91 623 46 14 E-mail: [email protected] Web: www.grupoantena3.com
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’ -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’ -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.
40 Antena 3 –