Chellomedia Overviewvf.Pdf

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Chellomedia Overviewvf.Pdf Chellomedia Overview June 2013 Company Overview • Chellomedia produces and distributes channels in over 125 countries and 27 languages – Reaches over 375M TV households in EMEA and Latin America • Owns 48 channels and has 20 channel JVs with third parties including CBS, Pulsat and Zon Multimedia1 – Includes brands across lifestyle, entertainment, movies, sports and dramas • Serves as the international content division of Liberty Global (“Liberty”), an approximately $45BN in enterprise value, public company – Considers Chellomedia non-core and is starting an auction sales process CY 2013E TV Revenue by Geography CY 2013E TV Revenue by Genre Other Lifestyle 13% 12% Sports Netherlands Czech 23% 21% 3% Entertainment 8% Poland 7% Portugal Hungary 8% 13% Childrens 15% LatAm Movies 12% Spain 32% Factual UK 13% 9% 10% Source: Preliminary financials based on estimated or proprietary information provided by investment banks 1 Channel count and data as of 31-Dec-2012 2 Business Units 3 Operator of global Largest Leading Pay-TV Provider of Provider of play- Provider of Pay- thematic channels independent channels provider premium channels out services, TV TV channels in channel operator across the CEE in the Netherlands distribution and Latin America in Spain & region content delivery Channels Portugal and JVs1 17 Channels 22 Channels 13 Channels 4 Channels 12 Channels (of which 8 (of which 7 (of which 1 (of which 4 through JVs) through JVs) through JV) through JVs) JV Partners Miami/Buenos Headquarters London Madrid Budapest Amsterdam Amsterdam Aires Key UK, EMEA, Asia Spain, Portugal, Latin America, CEE region Netherlands EMEA, Asia Regions (China) Africa Portugal, Africa Subscribers2 ~170M ~40M ~40M <0.5M ~125M 2012 ~15% ~25% ~25% ~25% ~10% Revenue ($82M) ($138M) ($138M) ($138M) ($55M) Source: Company data and preliminary financials based on estimated or proprietary information provided by investment banks 1 Joint-ventures are 50:50 unless stated otherwise 2 Subscribers include all subscribers consolidated and JV channels 3 Chellomedia LatAm assumed to be residing with the Chellomedia Group as of Dec-2012 3 Financial Overview • Chellomedia revenue has grown ~8% over the last 3 years, with slight erosion of EBITDA margins • Valuation for the total company is rumored to be between $800M and $1BN1 – We have been unable to confirm the valuation range as the financials available to us are preliminary, unconfirmed, and may include minority interest Revenue EBITDA $551 $560 $106 $99 $458 $442 $86 $82 $83 $77 $377 $366 $68 $316 2007A 2008A 2009A 2010A 2011A 2012A 2013E 2007A 2008A 2009A 2010A 2011A 2012A 2013E Margin 22% 22% 21% 19% 19% 18% 19% Source: Preliminary financials based on estimated or proprietary information provided by investment banks Note: Dollars in millions. Financial results presented on CYE 12/31 1 Valuation range quoted from Wall Street Journal, 20-May-2013 4 Strategic Rationale • Enhance and expand SPT’s global footprint into key regions (e.g. Benelux, Africa) • Diversify SPT’s portfolio of networks to different genres (e.g. sports, food) • Leverage overhead and infrastructure in regions with SPT networks presence • Provide distribution leverage in regions with SPT networks presence – Enhance terms and provide distribution protection and expansion opportunities for SPT channels – Achieve more favorable terms for SPT channels on Liberty’s UPC cable • Develop original programming for the acquired channels • Leverage SPE’s existing content library on the acquired channels 5 Appendix 6 Channel Overlay Chellomedia & SPT Chellomedia SPT Region Channel Description Region Channel Latin America (~10% of Revenue) AM Sports American Sports Latin America AXN Central America Casa Women House & Lifestyle Crackle South America Cosmopolitan TV Women Lifstyle Entertainment Sony Entertainment TV Culture Activa Argentinian Art Spin El Gourmet Food Ella Style, Fashion, Home Décor Brazil AXN Europa Europa European Cinema and TV Crackle Film & Arts Art & Entertainment Sony Entertainment TV MGM Movies Spin Reality TV Reality TV Central Europe (~25% of Revenue) Film Café Women targeted movies Central Europe Animax Bosnia Film Mania Film and Drama: 1990-2000 AXN Budapest Megamax Animation: Kids 7-14 AXN Crime Czech Republic (3% of Revenue) MGM Classic Movies AXN Sci-Fi Herzegovina Minimax Childrens Channel: Boys 7-14 AXN Spin Hungary (13% of Revenue) OBN JV: General Entertainment Poland (7% of Revenue) Spektrum HD Documentary Germany Animax Romania Spektrum Home Home improvement AXN Slovakia Sport1 Sports Sony Entertainment TV Sport2 Sports SportM Sports Poland AXN Spin TV Paprika Cooking Baltics Sony Entertainment TV Source: Company data and preliminary financials based on information provided by investment banks Key Channels and Key Relationships Note: Key channels and key relationships based on materials provided by an investment bank. 7 Channel Overlay Chellomedia & SPT (Cont’d) Chellomedia SPT Region Channel Description Region Channel Multicanal / Iberian Market (~25% of Revenue) Bio JV: A&E Networks; True Stories Africa Sony Entertainment TV Portugal (8% of Revenue) Buzz Violence, Terror, Action, Desire Sony Max Southern Africa Canal 18 18+ TV Spain (13% of revenue) Canal Cocina Cooking Spain Animax Canal Decasa JV: Zon Multimedia; Lifestyle AXN Canal Hollywood JV: Zon Multimedia; American movies AXN White Canal MGM JV: MGM; Movie Channel Canal Mov Comedy, ScFi, Horrow, Action Movies Portugal AXN Canal Panda Children's Channel; Kids 2-9 AXN Black Canal Somos Spanish Films AXN White Crimen & Investigacion JV: A&E Networks; Crime and Mystery CTK (Cinematk) JV: A&E Networks; Independent Film Historia Hollywood Movie Channel MGM Classic Movies Natura Nature Documentary Channel Odisea International Documentaries (Spanish) Odisseia International Documentaries (Portuguese) Panda Biggs JV: Zon Multimedia; Pre-teens Sol Musica Spanish Music Channel XTRM American Thrills and Action Benelux (~25% of Revenue) CI (Crime & Investigation) Crime, Investigation, Mystery Benelux None Netherlands (21% of revenue) Film1 Movies Film1 Action Thriller, Action, Horror Film1 Family Family and Children Films Film1 Premiere Premium Films Film1 Series TV Series Film1 Sundance Channel Independent Film Sport1 Sports Sport1 Extra Extra Channel for Additional Program Sport1 Golf Golf Sport1 Select Live Sports Sport1 Tennis Tennis Sport1 Voetbal Soccer Weer en Verkeer Weather & Traffic Source: Company data and preliminary financials based on information provided by investment banks Key Channels and Key Relationships Note: Key channels and key relationships based on materials provided by an investment bank. 8 Channel Overlay Chellomedia & SPT (Cont’d) Chellomedia SPT Region Channel Description Region Channel Chello Zone (~15% of Revenue) CBS Action American Action UK Crackle Africa CBS Drama American Drama more>movies Asia CBS Europa Movies movies4men Europe CBS Reality Reality TV Sony Entertainment TV Middle East CI (Crime & Investigation) Crime, Investigation, Mystery Sony Max Russia Extreme Sports Channel Extreme Sports Sony Movie Channel UK (10% of Revenue) Fine Living Network JV: Scripps Networks Interactive Sony SAB Food Network JV: Scripps Networks Interactive Horror Channel Horror Italy AXN JimJam Childrens AXN Sci-Fi JimJam Polsat Childrens: Polish MGM Hollywood Movie Channel Russia/Ukraine Sony Entertainment TV Outdoor Outdoor TV Sony SciFi ShortsTV Short Movies Sony Turbo Sports1 Sports Asia Animax AXN Dori Media (Newly Acquired) Sony beTV Sony Entertainment TV Sony Max Sony One Sony SAB Japan Animax AXN AXN Mystery Korea Animax AXN India Animax AXN Sony Aath Sony Entertainment TV Sony LIV Sony MAX Sony MIX Sony PIX Sony SAB Sony SIX Australia Crackle SciFi Sony Entertainment TV Sony Max Sony One TV1 Source: Company data and preliminary financials based on information provided by investment banks Key Channels and Key Relationships Note: Key channels and key relationships based on materials provided by an investment bank. 9 .
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