jan16 presentation to investors atresmedia

1Roadshow back up_Mar 2013 1Presentation to investors_Jan 2016

ATRESMEDIA

Presentation to investors

January 2016

www.atresmediacorporacion.com


Advertising market in Spain

Source: Infoadex

8%

9M 15 Gross Ad market Yoy growth

11%7%5% 1%

Total Ad market 6%

9M 15: A very positive year


Source: Infoadex. 2015e: assuming growth rates at 9M15

TV: Clear leadership and upward trend

Spanish Ad spending by medium Share

13.6%

26.8%

5.3%

10.8% 9.3%

9.1%

42.0%41.6%

21.9%

1.3%

2015e201420132012201120102009200820072006200520042003


+0.4pp

+21.6pp

-13.2pp

-5.5pp

+0.2pp


Source: Infoadex and Bank of Spain

Total & TV market vs GDP is bouncing back

Total & TV ad intensity (vs GDP)


0.94%

0.44%

0.33%

0.19%

Total Ad market

TV Ad market

All-time average= 0.73%

All-time average= 0.29%


39%

67%

29%

60%

88%

Source: Internal estimates & EGM. 2015 data

11.9

8.1

5.1

1.12.2

Spanish TV: Best cost-coverage mix

Cost-coverage by mediumIn €/1,000 impacts & % penetration

CPT

Coverage



Key issues: Ad market recovery & industry changes

Spanish TV industry

• Macro outlook• Ad market growthAd market

• More DTT channels• New players: Pay TV

& OTTs

Industrychanges

2016 key issues


Positive outlook for household consumption & GDP

-0.5%

-2.1%

1.4% 2.7%

4.1%

-1.9%

-1.1%

1.0%

3.9%

3.7%

2012 2013 2014 2015e 2016e

Consumption

GDP

Consensus

Source: Funcas (Dec 15). In nominal terms

Household Consumption & GDP Yoy growth

Spanish TV industry: Main drivers


Recovery seems sustainable butthe size of the market is still low in historical levels

Gross TV Ad market In € mill

Source: Infoadex. 2015e: Consensus of analysts

Spanish TV industry: Ad market

16%10% 8% 9%

-11%

-23%

4%

-10%

-19%

-6%

11%7%

2,317

3,469

2,378 2,472

1,703 1,890

2,015

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e

% yoy Gross TV Ad market

Average: 2,475


Television industry: Ad market

Spanish TV Ad market: Last 8 quarters in positive

Gross TV Ad market Yoy growth

1%

-14%

-8%

-15%-18%

-15%

-24%-21%

-16%

-10%

-3%

6%

3%

8%

22%

13%12%

8%

3%

Q111 Q211 Q311 Q411 Q112 Q2 12 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315

FY11=-10%

FY12=-19%

FY13=-6%

FY14=+11%

Source: Infoadex.

9M15=+8%


Source: Internal Estimates

9M 15: All the sectors in positive

Ad spending by sectors% 9M 15 yoy

Beauty,Hygiene &Cleaning

Food Autos Telcos Retail Finance Culture Health Others

6%

14%11%

1%

6%

8% 9%

17%

10%

14% 14% 11% 10% 11% 10% 5% 6% Weight19%

9M 15=+8%

Spanish TV industry: Ad market

(BeveragesEnergyHomeSports & leisure…)


Source: • TV Market: Infoadex. 2015e: Consensus of analysts • Prices: Internal estimates. Conventional advertising. • Volumes: Internal estimates. Commercial hours: 13h-25h. Conventional advertising excluding TVE.

Prices and volumes at very low levels

2,317

3,469

1,703

1,890 2,015

100

146 147

109 112116

8389

92

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e

Nominal Prices Volumes

TV Ad marketIn € million +

Market Prices & Volumesin index terms

TV ad market

Television industry: Prices and volumes


Average daily viewing In min

213

237

Ind 4+

13 to 24

4 to 12

25 to 44

45 to 64

>65

TV viewing remains at very high levels

Source: Kantar Media

Age groups

Spanish TV industry: Audiences

234

Ind 4+ (+7 days)

343

302

284

253

193191

137146

129143


Spanish TV industry

Net TV

Commercial FTA TV landscape (2015)

Veo TV

Atresmedia has a key position in a wide FTA TV offer

Channels

13TV

Secuoya

Real

Madrid TV

Kiss TV

AudienceMkt share* Power ratio

To be launched in Q1 16

26.8%42.5% 1.58x

31.0%43.4% 1.40x

3.4%

2.1%

2.0%

4.0% 0.5x

Source: Kantar Media, Infoadex* At 9M15


Spanish TV industry : Pay TV

Pay TV position in Spain

Pay TV sector in Spain2015

Pay TV25%

Penetration% households with pay TV connection

Audience% Total Individuals 4+

Pay TV7%

Ad market share% Total TV ad market

Pay TV4%

Source: Kantar Media, Infoadex


Spanish TV industry : Pay TV

Source: CMT (Data available for Q215)

Pay TV by platform type and player

Pay TV sector % Total connections (5.4 mill)

Satellite26%

Cable22%

IPTV44%

DTT4%

Others4%

TEF71%

VOD15%

Gol T4%

Others10%


Atresmedia: A leading communication group

Solid and clear group structure

OTHERS

ADVERTISING

Marketshare42%

Marketshare20%

Total Ad marketshare19%


TV & Radio as main source of revenues

Source: Infoadex & internal estimates

Atresmedia: Market positioning

ANTENA 3

NEOX

NOVA

Onda CeroEuropa FMOnda Melodía

Atresmedia CineAtresmedia Digital

Atresmedia Diversification

Radio

Others

TV

Planeta-De Agostini:RTL:Shareh. La SextaTreasury stock:Free-float:

41.7%18.7%4.1%0.4%35.2%

89%

9%

2%

LA SEXTA

MEGA (launched in 2015)

ATRESERIES (launched in 2016)

2014 Net

Revenues

€ 883m


Clear strategic approach

Regaining #2 position

Monetizing digital developments

Consolidating TV leading position

Atresmedia: Strategy

Consolidating business model


Atresmedia Television: Strategy

Unique TV offer


Male Female

55-64

4-12

Age

Balanced and varied TV offer

Atresmedia Television: Positioning


12.513.4 13.6 13.5

13.913.5

14.5 14.8

12.2

10.2 10.0 9.8

12.5

13.4 13.8

13.5

13.3

12.2

13.6

14.1

10.0

8.27.9 7.8

Antena 3: Stable audience ratings

Total Individuals24h

Commercial Target24h

Source: Kantar Media. Total Individuals (4y+)

Atresmedia Television: TV audiences by core channel

Source: Kantar Media. Commercial Target (16-54 y)


4.9

6.0

7.2

7.4

6.0 6.0

6.77.2

9.5

8.57.8

7.3

5.8

6.6

7.9 8.1

7.6 7.4

8.28.4

6.8

5.85.2

4.8

La Sexta: The best growth story




Atresmedia Television: TV audiences by second channel



18.9

16.7 16.7 16.7

28.1 29.030.7 31.0

25.8

28.827.7

26.8

15.913.8 13.6 13.4

30.9 31.433.3 33.6

28.0

31.030.0 29.2

Atresmedia TV: Solid ratings despitelosing 3 channels as of May 2014




Atresmedia Television: TV group audiences



16.7 17.0 16.7 16.3

31.4 31.5 31.130.1

26.625.8

26.628.1

13.9 14.213.0 12.6

33.7 34.4 33.7 32.8

28.627.5

29.2

31.3

Atresmedia TV: closing the gap with MSEquarter after quarter




Atresmedia Television: TV group audiences



Cost increases mostly explained byone offs & programming costs

Cost increases by concept

2014 OPEX 2015 one-offs Variable costs &programming

2015 OPEX

756 100

104

+2.0%

+1.0%+1.5%

+2.0%

+0.5%

Atresmedia: 2015 guidance in costs

Updated guidance

Original guidance

+7%

Sportsoverlap

One-offs

Mega

∆Prog

Variable costs


Atresmedia Radio: 20% market share

Atresmedia Radio: Positioning & Strategy

# 2 talk radio2.3 mill listeners

# 3 music radio2.1 mill listeners

#3 radio player in Spain

4.5 million listeners

20% market share

Source: EGM 2015 yearly averageMarket Share: Infoadex & internal estimates

New music radio

230k listeners


Atresmedia Radio: 4.5 million listeners

Atresmedia Radio: Audiences

Source: EGM Surveys Monday to Friday (.000) ( Moving average).

Thousand of listeners

4,123

4,738 4,8124,981

4,552

2,492 2,623 2,598 2,6492,368

1,548

2,009 2,045 2,077 1,954

83 106 169 255

230

3rd 11 3rd 12 3rd 13 3rd 14 3rd 15


Exploring any possible source of audience & revenues

Atresmedia Digital: Positioning & Strategy


Atresmedia Digital: Atresplayer

Atresplayer: Atresmedia’s OTT offer


Developing new non ad-based media initiatives

Atresmedia Diversification: Positioning & Strategy


≈ 16.5 mill subscribers ≈ 9.5 mill subscribers

(Atresmedia’sbest-series channel)

(Antena 3’s premiumcontent channel)

(Celebrity & Life-style channel)

Atresmedia Diversification: International

47%

20%

33%

50%

35%

15%

100%

≈ 5 mill subscribers

2 mill

25 mill

4 mill

International: More than 31 mill subscribers ytd


Atresmedia Diversification: Media for Equity

MEDIA FOR EQUITY: Exploring new business models

Automotion

Fashion & Accesories

Health

Leisure

Technology

Others

Education

Sports

Travel

Classified & Social

Media

For

Equity


Medium term goals: TV & Radio

Television and Radio’s EBITDA margin on track

EBITDA Margin

All time average

≈2,100

EBITDA Margin

2013

404

All time average

≈460

Market Gross Ad revenues (€ mill) & EBITDA Margin

2013

1,703

2014

1,890

7%

15%

≈25%

2014

420

21% 22%

≈25%

Source: Kantar Media & Atresmedia’s financial results


Other non-ad based revenues to double

10%

5%

Other revenues than TV & Radio advertisingas % of Total Revenues

2014: ≈€ 50 mill

2017e: ≈ € 100 mill

Diversification

x2

33%67%

Others (Films & Digital)

55%

45%

Medium term goals: Other revenues


Debt at target level and dividend policy according to plan

Dividend policyTotal Net Debt Target (€ mill)

€ 100 mill

€ 150 mill Payout ratio ≥80%

185

2014 dividend: 0.20 €/ sh100% payout ratio

Long term target136

Medium term goals: Financials


Back up: 9M 15 Financial Results

Back up


Net Revenues 697.9 626.2

EBITDA 119.5 84.3

Net profit 69.3 47.1

9M 15 9M 14

+11.4%

+41.7%

YoY

+47.1%

OPEX 578.4 541.9 +6.7%

Atresmedia

9M 15 Results in € mill: P&L

EBITDA Margin 17.1% 13.5%

Net profit Margin 9.9% 7.5%

Source: Atresmedia’s financial statements

EBIT 103.1 72.0 +43.2%

EBIT Margin 14.8% 11.5%


Total Net Rev. 617.5 554.5

EBITDA 100.1 69.9

EBIT 89.3 59.6

9M 15 9M 14

+11.4%

+43.2%

YoY

+49.8%

OPEX 517.4 484.6 +6.8%

Atresmedia Television




Source: Atresmedia`s financial statements


Net Revenues 65.0 59.6

EBITDA 14.4 9.0

EBIT 13.0 7.6

9M 15 9M 14

+9.0%

+59.5%

YoY

+70.2%

OPEX 50.6 50.5 +0.0%

Atresmedia Radio






Financials

Contribution to consolidated group

Atresmedia: “Others” Division

Net Revenues 15.5

EBITDA 5.0

9M 15 9M 14€ mill

12.1

5.4

Net revenues split


Others* 50%

Films 32%

Events 18%

*Others ( Internet, Editorial…)


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,

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content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or

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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.

Investor Relations Department

Additional information

Phone: +34 91 623 46 14

E-mail: [email protected]

Web: www.atresmediacorporacion.com

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