GRUPO ANTENA 3 www.grupoantena3.com
Presentation to investors Nov 2012
Presentation to investors_Nov 2012 1 Antena 3 Group at a glance
New Antena 3 Group, a leading communication group
ANTENA 3 GROUP
TV RADIO OTHERS
(*)
ADVERTISING
(*) Leased and operated by Imagina
Presentation to investors_Nov 2012 2 Antena 3 Group at a glance
One of the largest communication groups in Spain
ANTENA 3 GROUP
A3 Films A3 eventos Unipublic Others LA SEXTA XPLORA 6% LA SEXTA3 TODO CINE Onda Cero GOL T* Europa FM Radio Onda Melodía TV 11%
2011 Total revenues 83% ANTENA 3 805 M€ NEOX TV NOVA NITRO 2011 Total revenues 254 M€
Planeta De Agostini: 41.7% RTL: 19.2% Shareh. La Sexta 7.0% Treasury stock: 7.0% Free float: 25.1%
(*) Leased and operated by Imagina
Presentation to investors_Nov 2012 3 Antena 3 Group at a glance
Solid market position in TV and Radio
Antena 3’s market position
TELEVISION RADIO
43% 17% Market share
Source: Infoadex
Presentation to investors_Nov 2012 4 1 SPANISH TV SECTOR
Presentation to investors_Nov 2012 5 Advertising market in Spain
Ad market maintains downward trend
Total Ad & TV market evolution
In € mill
CAGR ≈+10% CAGR ≈ 12%
7,985
5,459 5,505
Total Ad market 3,469
2,142 2,237
TV Ad market
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
Source: Infoadex
Presentation to investors_Nov 2012 6 Advertising market in Spain
TV maintains its leadership among media
Ad market by media
40.1% TV 40.6%
28.3%
Press 17.6%
16.3% 10.9% Magaz 9.5% Radio 9.0% 1.3% Internet 6.9%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Infoadex
Presentation to investors_Nov 2012 7 TV Advertising market by sector
Negative trend in every sector
TV Ad market by sector 9M 12
∆ yoy Weight
Market = 18% Beauty 12% 18%
Food 18% 15%
Automotive 15% 12%
Telecom 30% 10%
Retail 14% 9%
Finance 7% 11%
Beverages 25% 5%
Others 20% 20%
Source: Internal estimates
Presentation to investors_Nov 2012 8 TV Advertising market evolution
Negative trend continues in 9M 12
TV Ad market by quarter
Gross ad revenues (% yoy) 12% 6% 2% 1%
3% 8% 11% FY10=+4% 14% 15% 15% 19% 18% 24% 26% FY11= 10% 9M12= 18% 34%
FY09= 23%
Q1 09Q2 09Q3 09Q4 09Q1 10Q2 10Q3 10Q4 10Q1 11Q2 11Q3 11Q4 11Q1 12Q2 12Q3 12
Source: Infoadex
Presentation to investors_Nov 2012 9 TV: best competitive position
TV, best price/coverage ratio
Competitive position by media
89% Coverage by media % population 61% 46% 45% 36%
CPT by media 12.6 In € /1,000 impacts
6.6 7.4
2.5 2.5
TV Radio Magazines Press Internet
Source: Coverage: 2rd EGM survey 2012; CPT 2011e (Cost per thousand): Internal estimates
Presentation to investors_Nov 2012 10 TV viewing
TV viewing is at all time high
TV viewing
Average daily viewing in min
239 234
227 226 223 218 217 217 210 211 213 208
+29 min/viewer
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Kantar Media
Presentation to investors_Nov 2012 11 TV audience shares
Commercial FTA players gaining audience share from public broadcasters
Public vs Commercial FTA TVs
In %
53.3 54.2 52.5 51.8 52.2 49.7 50.5
+16pc +26pc
33.6 33.2 31.5 30.9 30.4 29.0 28.2
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12
Source: Kantar Media Audience share 24h; Total Individuals: 4+
Presentation to investors_Nov 2012 12 Sector evolution
Significant structural changes over the last years in Spanish TV sector
FTA TV Sector evolution
3,469
+50% 45% TV Ad market (€ million) 2,317
8 4 5 Players* (number)
2003 2007 2012e
Ad share: Public TVs 46% 14pp 32% 24pp 8%
Commer.TVs 54% +14pp 68% +24pp 92%
Antena 3 24% +1pp 25% +17pp 43%
Source: Infoadex (*) Players with ad revenues
Presentation to investors_Nov 2012 13 TV: competitive landscape at oct 12
Spanish FTA TV landscape: 6 players & near 30 channels
FTA TV landscape
Commercial FTA TVs Public FTA TVs
Antena 3 Mediaset Esp.Net TV Veo TV FORTA TVE
FTA Core channel
FTA Compl. * * Channels * *
Pay Compl. Channels (*)
Audience share 9M 12 (%) 25.2 28.1 4.4 2.9 9.7 19.6
Market share 42.1 45.4 ≈≈≈ 1.5 ≈≈≈ 1.0 7.4 9M 12 (%) Power ratio 1.7 1.6 2012 (x) 0.35 0.35 0.8
Source: Kantar Media & Infoadex * Depending on the region (*) Leased and operated by Imagina
Presentation to investors_Nov 2012 14 2 ANTENA 3’S PERFORMANCE
Presentation to investors_Nov 2012 15 Antena 3 vs TV Ad market
15 consecutive quarters outperforming TV Ad market
A3 vs TV Ad market
Gross ad revenues (% yoy)
24% 20% Market 18% Antena 3 12% 6% 6% 12% 4% 6% 3% 2% 8% 6% 10% 1% 10% 3% 14% 8% 11% 24% 14% 15% 15% 29% 19% 18% 24% 26%
34% Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312
Source : Infoadex
Presentation to investors_Nov 2012 16 Antena 3 vs its peers
Antena 3, best in class
Ad market comparison
In %
9M12 33.5 +3.2pp 9M11 30.3
9M12 45.4 +2.0pp 9M11 43.4
9M12 8.6 3.0pp 9M11 11.6
9M12 7.3 2.1pp 9M11 9.4
Source: Infoadex
Presentation to investors_Nov 2012 17 Antena 3’s performance
Antena 3’s market share is at its highest level ever
Antena 3’s performance
33.5% Market share x Power ratio 30.5% Audience share 28.3% 27.9% 26.2% 26.3% 24.1% 24.6% 1.3x 22.4% 1.9x 1.3x 1.3x 1.8x 1.4x 1.3x1.5x 20.8% 21.3% 1.5x 1.7x 19.6% 17.8% 17.9% 17.0% 16.6% 17.1% 15.8%
2004 2005 2006 2007 2008 2009 2010 2011 9M 12
Source: Infoadex + Kantar Media.
Presentation to investors_Nov 2012 18 Antena 3: TV audience shares
Antena 3’s audience improves year over year
Antena 3’s audience by quarter
In %
18.2 18.1 17.9 17.6 2012 +5% 17.1 +6% +9% 17.4 2011 16.8 16.7 +8% 16.1 16.2 15.8 2010 15.1 15.2
Q1 Q2 Q3 Q4 FY
Source: Kantar Media Audience share 24h; Total Individuals: 4+
Presentation to investors_Nov 2012 19 Antena 3: TV audience shares
Antena 3, more than 1pp gain in audience yoy
Audience Share yoy
In %
28.1 26.3 +1.8pp
22.5 2.9pp 19.6 17.9 16.8 +1.1pp
10.2 0.5pp 9.7 7.7 0.4pp 7.3
9M11 9M12
Source: Kantar Media Audience share 24h; Total Individuals: 4+
Presentation to investors_Nov 2012 20 Antena 3 Radio (Uniprex)
Antena 3 Radio, upward trend over the last two years
Listeners evolution yoy
+1.2 million listeners 4,498 4,323k 4,033k 4,123k 3,903k 3,516k 3,649k 3,338k TOTAL
2,573 2,456 2,492 2,563 2,313 2,401 2,205 2,294 1,819 1,657 1,548 1,425 1,497 1,254 1,072 1,157
1st 10 2nd 10 3rd 10 1st 11 2nd 11 3rd 11 1st 12 2nd 12
Source: EGM Surveys Monday to Friday (.000) ( Moving average)
Presentation to investors_Nov 2012 21 Antena 3 Multimedia
Maximizing rights value at every single window
Value chain for A3’s rights
NATIONAL FICTION (In house)
Pay Pre view per view
Free Share: TV 18%
In house + Post Catch up Premium Third party rights viewed (Ads) (Pay) (Pay)
DVD / Merchandising >1,500 titles Agreements with majors in non exclusive terms
International sales
Presentation to investors_Nov 2012 22 New initiatives
Exploring no ad based new business lines
New initiatives
Video on line (own production Ticketing & USA contents)
New business lines
Events organiser Gambling (concerts, (virtual casino) sports events,…)
Presentation to investors_Nov 2012 23 3 ANTENA 3 + LA SEXTA: “NO BRAINER” DEAL
Presentation to investors_Nov 2012 24 A winning combination: Antena 3 + La Sexta
New Antena 3 Group, leading Spanish Total Ad market
Creation of New Antena 3 Group
ANTENA 3 GROUP Television NEW ANTENA 3 GROUP • 4 channel multiplex • (Antena 3, Neox, Nova & Nitro) 8 FTA TV • 9M12 Audience: 17.9% • 9M12 TV ad share: 33.5% channels Radio • 2nd player with 4 million 42% TV Ad share listeners Others: 25% audience • Cinema share • Multimedia
LA SEXTA c20% Total Ad share (TV, Radio, • 4 channel multiplex (La Cinema & Sexta, Xplora, La Sexta 3) • 9M12 Audience: 7.3% Internet) • 9M12 TV ad share: 8.6%
Presentation to investors_Nov 2012 25 Unique opportunity in European FTA landscape
Concentration in Spanish TV sector mirrors other European markets
Competitive position post deal
45.4% 42.1%
Market share 33.5% 7.3% 0% 8.6% 5.2% 28.1 25.2 19.6 17.9 17.4
9.7 7.3 Audience share
OTHER
Source: Kantar Media & Infoadex (9M12)
Presentation to investors_Nov 2012 26 Transaction overview
Deal structure aimed to limit execution risk
Deal structure
Acquisition of Initial delivery of 15.8 MM(1) of Antena 100% of la Sexta 3’s Shares (equivalent to 7.0% of the Combined Entity) (by way of merger)
Maximum total assumption of €122 MM 1 as negative working capital plus net financial debt
Earn out mechanism: 2 • Additional 7% of the Combined Entity (delivered in treasury shares) • Valid for 2012 2016 • Triggered at certain level of Combined Entity’s PBT
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
Presentation to investors_Nov 2012 27 Significant synergies expected
Expected synergies between 60 80 mill euros
Synergies
Expected synergies €60 80 MM (fully as of 2013)
≈50% ≈50% Revenues Cost
Full utilisation of ad capacity Decrease in production costs Reallocation of targets to different ≈60% channels Reduction of overheads, including personnel costs Optimization of audience targets
Optimisation of commercial policy Better utilisation of content and across all channels of the Combined ≈40% programming rights Entity
Presentation to investors_Nov 2012 28 Overview of la Sexta
Excellent commercial track record
La Sexta’s track record
€254MM (2011) x ~2 Revenues €144 MM 11.4% (2011) x 3 Advertising 4.0% Share 7.6% (2011) x >2 Audience 3.0% Share x 4 (1) # of 4 Channels Channels 1 Channel
2007 2011
Note Leased to Imagina
Presentation to investors_Nov 2012 29 La Sexta’s revenues & opex breakdown
Revenues & OPEX affected by the market and the absence of sports rights
Total Net Revenues Total OPEX
290 313 264 59 254 45 10 18 20 22 163
115 39 254 223 236 20 234 11
104 104
2010 2011 9M12 2010 2011 9M12
Net Adv Rev Other rev Programing costs Personnel Others
Source: Antena 3’s internal estimates
Presentation to investors_Nov 2012 30 La Sexta: TV audience shares
La Sexta’s audience has bounced back to its all time high with no sports rights being broadcast
La Sexta’s audience La Sexta’s audience by quarter split by channels
In % In %
9.7 9.4 9.5 9.3 9.1 7.7 TOTAL 7.3 8.7 Commercial Target 0.4pp 8.2 8.1 5.9
8.0 8.0 1.2pp 4.7 7.8 7.9 7.4 7.3 Total Individuals 6.9 7.0 2.6 1.8 Formula 1 +0.8pp Football Football No sports Eurobasket
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 * 9M 11 9M 12
Source: Kantar Media Source: Kantar Media Audience share 24h; Total Individuals: 4+ Audience share 24h; Total Individuals: 4+ * Data at Oct 30 th
Presentation to investors_Nov 2012 31 La Sexta`s Product Positioning Today
Attractive programming grid provides significant growth potential
La Sexta’s grid identity
9.1% 7.7% High Quality 8.0% 6.6% Fiction and Films
6.8% 10.2% 7.3% Stable Entertainment Content
6.9% 7.0% 5.7% Information model
Strong complementary channels 6th option in Comercial Target 3rd option in Prime Time 24h among DTT channels among DTT channels
% Audience Share excluding re-runs (average 2012 YTD) Source: Kantar Media
Presentation to investors_Nov 2012 32 Antena 3 Group channels offering
Varied TV offer aiming at any type of viewership
Antena 3 Group channels offering
55-64
Additional Channels
Age (documentaries)
(movies)
4-12
Male Female
Presentation to investors_Nov 2012 33 Presentation to investors_Nov 2012 34 Advertising market in Spain
Advertising market in 2012
Media Q3 12 yoy 9M 12 yoy
TV 23.5% 18.3% Radio 13.2% 12.9% Newspapers 22.0% 21.0% Magazines 19.5% 17.0% Sunday suppl. 26.0% 19.0% Outdoor 5.5% 15.0% Internet 1.5% +3.8% Cinema 5.3% 19.7%
Total 19.6% 16.7%
Source: Infoadex
Presentation to investors_Nov 2012 35 Consolidated Group
9M12 Results in € mill: P&L
9M 12 9M 11 YoY
Net Revenues 512.9 577.5 11.2%
OPEX 489.2 497.8 1.7%
EBITDA 23.7 79.6 70.2% EBITDA Margin 4.6% 13.8%
EBIT 11.6 67.9 82.9% EBIT Margin 2.3% 11.8%
Net profit 4.6 52.0 91.1% Net profit Margin 0.9% 9.0%
Source: Antena 3’s financial statements
Presentation to investors_Nov 2012 36 Antena 3: Television division
9M 12 Results in € mill: P&L
9M 12 9M 11 YoY
Total Net Revenues 442.6 485.1 8.8%
OPEX 420.7 410.6 +2.5%
EBITDA 21.9 74.5 70.6% EBITDA Margin 5.0% 15.4%
EBIT 12.2 65.4 81.3% EBIT Margin 2.8% 13.5%
Source: Antena 3’s financial statements
Presentation to investors_Nov 2012 37 Antena 3: Radio division
9M 12 Results in € mill: P&L
9M 12 9M 11 YoY
Net Revenues 59.4 65.2 8.9%
OPEX 51.2 51.6 0.7%
EBITDA 8.2 13.6 40.0% EBITDA Margin 13.8% 20.9%
EBIT 5.9 11.1 46.8% EBIT Margin 9.9% 17.0%
Source: Antena 3’s financial statements
Presentation to investors_Nov 2012 38 Antena 3: Other Subsidiaries + Adjustments Financials
Net revenues split
A3 Movier. events 2% € mill 9M 12 9M 11 19%
Net Revenues 10.9 27.2 Others 50%
EBITDA A3 6.3 8.5 films 29%
Source: Antena 3’s financial statements
Contribution to consolidated group Mainly represents the business lines: Atres Advertising, Movierecord, Antena 3 Films, Antena 3 Eventos, Others (Internet, Música Aparte,…)
Presentation to investors_Nov 2012 39 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’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.
Presentation to investors_Nov 2012 40