ANTENA 3 GROUP 2011 Annual and Corporate Responsibility Report Index Contact details Antena 3 Group Communication Department Letter from the President . 2 Av. Isla Graciosa nº 13 San Sebastián de los Reyes Letter from the CEO . 6 28703 Madrid Main figures of Antena 3 Group . .10 . By e-mail: The year’s highlights . 12 . [email protected] Antena 3 Group . 22 . [email protected] Television . 56 . www.grupoantena3.com www.fundacionantena3.es Radio . 82 Multimedia . 92. By telephone: (+ 34) 91 623 05 00 Advertising . 104 By fax: (+ 34) 91 654 92 04 Human Resources . 118 . Society . 138 . The Environment . 158 Annexes . .172 . This Annual Report was approved by Antena 3 de Televisión, S.A. Board of Directors on 22nd February 2012. ANTENA 3 GROUP 2011 ANNUAL AND corporate RESPONSIBILITY report 1 Letter from the President [ The merger with La Sexta will 2011 was a very intense year and, at the same not prevent us from closing the year, once again, generate interesting time, extremely satisfactory on several different stronger and more profitable. synergies and levels. Each one of the companies and divisions new business that compose the ANTENA 3 GROUP registered sig- 2011 was shaped by a highly important develop- nificant growth, evidencing our high degree of ment in the television industry. In December we opportunities that competitiveness in all the areas where we are signed a merger agreement by which LA SEXTA will make us more present. In television and radio, we increased our would be absorbed by ANTENA 3 GROUP, transform- competitive and audience, while in advertising we outpaced the ing the landscape of the Spanish audiovisual mar- market; and all of the initiatives carried out in the ket and consolidating our position as the leading profitable. ] multimedia and film production areas have sur- operator. passed our expectations. This privileged situation has given us the opportunity to enter into a merger The agreement, which was highly satisfactory agreement with LA SEXTA that I consider a suc- for both parties, entailed the delivery to LA SEXTA cess. In short, even though the crisis continued shareholders of an initial stake of 7% in the new José Manuel Lara to negatively impact the advertising market, it did company and an additional stake of up to 7%, 2011 ANNUAL AND corporate RESPONSIBILITY report 3 LETTER FROM THE PRESIDENT phased in gradually and in function of compli- The merger by absorption with LA SEXTA also says proud. Over the course of 2011 we have reinforced [ In television we ance during the 2012-2016 period with a series of a great deal about our management team. In 2011 our brand positioning and increased our market have reinforced objectives related to the results of the new Group. we worked intensely to reach this merger agree- and audience share. This is an exceptional perfor- ment, which we consider historic, both because mance, especially in such a short period of time. our brand The execution of the merger and the complemen- of its size, and because it has unfolded in the best positioning and tary agreements is contingent on obtaining the possible way for both parties. The market con- The construction of a brand is a long process and increased our pertinent regulatory authorizations and approval curred with this assessment. requires changing viewers’ perceptions, a process from competition authorities. Approval of the oper- that can take some time. In our case, the values market and ation will be submitted to the approval of the Gen- In an environment in which the advertising mar- that define us – such as respect for the viewer and audience share. ] eral Shareholders’ Meeting. ket has once again posted negative figures, with trust in our content – has already attracted new across-the-board drops in all the sectors, and in viewers and more advertisers. This is our qualita- With the incorporation of LA SEXTA’s television which new competitors have appeared after the tive advantage. offerings, the new ANTENA 3 GROUP adds a leading merger of Telecinco with Cuatro, ANTENA 3 GROUP TV player to its strong presence in other markets closed the year as one of the companies that has For the ANTENA 3 GROUP, Corporate Responsibility [ Antena 3 such as radio, advertising and film: a total of eight best withstood the crisis, registering similar fig- is not merely the latest fad, but forms an integral channels that meet the demands of both specta- ures to last year. Net Profit came in at 93.4 million part of our business model. Therefore, a key part Group is one of tors and advertisers, with complementary and var- Euros. Net Revenues stood at 805.2 million euros, of our Mission is to win the trust of our stake- the companies ied programming. and EBITDA came in at 124.4 million euros, with a holders; our Vision entails making a valuable and that has best sales margin of 15.5%. positive contribution to society; and our Values, to I believe that the whole can be superior to the sum embody quality and commitment. withstood the of parts. This is the case here. The merger with LA ANTENA 3 maintained its commitment to share- crisis, registering SEXTA gives us the opportunity to be much bigger holders and will pay out more than 80% of the net The 2010-2013 Corporate Responsibility Master than what the union of two channels might sug- profit in dividends. Plan, which defines the lines of action needed turnover that gest. Our new position will generate interesting to put ANTENA 3 GROUP at the forefront of CR, has was similar to the synergies and new business opportunities that will This has all been made possible by the Group’s already achieved a degree of compliance of over previous year. ] make us more competitive and profitable. Being excellent team of professionals. They are the 76%, even though there is still another year before great is not just a question of size, but also of means through which we can offer a new concept said plan is finalized. strength. of television that we believe in and that makes us Furthermore, the approval of the Code of Conduct by the ANTENA 3 GROUP’s Board of Directors, her- alds a new phase in the company’s organizational culture. This document is fundamental for provid- ing guidance to employees, executives and mem- bers of the Group’s management bodies in all of their actions. The Code is perfectly integrated with the rest of the policies, values, and principles in force in the organization, and will also allow us to be more efficient. We go into 2012 with the belief that we are in the best position to continue growing as a group, espe- cially now, since following the absorption of LA SEXTA we will face the enormous challenge of carrying out the integration of both companies while remaining the communications leader in Spain and Europe. 4 ANTENA 3 GROUP 2011 ANNUAL AND corporate RESPONSIBILITY report 5 [ Under a common strategy, the new channels that will be integrated in the Group will retain their identifying characteristics, thereby joining the most varied offering on the Spanish market. ] Letter from the CEO ANTENA 3 GROUP’s merger by absorption with LA the total integration of the two companies. This is SEXTA, the details of which were successfully final- a highly complex endeavor that will require us to ised at the end of the year, probably marks the operate at the same level as the other large com- beginning of the most important period in the munications groups in Europe. company’s history, in which we will be able to con- solidate a leading position in the audiovisual sec- Under a common strategy, the channels that will tor. join the Group will retain their identifying charac- teristics, thereby joining the most varied offering ANTENA 3 GROUP will become the largest commu- on the Spanish market. In the same manner that nication company in Spain: two large television we invest in our current portfolio of channels, we channels, six theme channels, two radio stations, intend to enhance the capacity of LA SEXTA and its all of which are continually growing, and will require theme channels to generate new and larger audi- a great deal of effort to manage. Furthermore, we ences with the aim of offering advertisers global have a presence in the advertising market through audiences in a high quality audiovisual environ- ATRES ADVERTISING, in film through ANTENA 3 FILMS; ment. and in internet through ANTENA 3 MULTIMEDIA. This merger also clearly represents an opportunity to If it were not for the crisis, this probably would continue developing our business model from a have been one of the best years ever for Antena 3. position of strength, which should result in higher Nevertheless, we have the satisfaction of being, profitability for each of the businesses that com- once again, the company in the media sector that pose our new group, and of course, for our share- has been best able to adapt to the recession, in holders. an environment that has been in constant flux and a sector that is especially vulnerable to the cur- Although the execution of the merger is still pend- rent economic situation. Our growth rates have ing the authorizations of the regulatory and com- outpaced those of the market because advertisers petition authorities, as well as its approval by the recognized the quality and variety of our television General Shareholders’ Meeting, we are already and radio offerings, which outweigh mere quanti- developing the lines of action that will implement tative considerations. Silvio González 6 ANTENA 3 GROUP 7 LETTER FROM THE CEO [ Our growth rates have [ It is a rare that a outpaced those of the channel meets with market because advertisers success in practically recognize the quality and 100% of its premieres, ing.