EXPANSION TO SOUTH AMERICA

SUMMARY

GLOBAL MARKET AND LIVE NATION

ENTERTAINMENT AND SOUTH AMERICA

OUR CHOICE: BRAZIL HOW? ACQUISITION

FINANCIAL OPERATION AND FORECAST

LAUNCH AND RECOMMENDATIONS

GLOBAL MARKET

Sources: BillboardBiz and T4F

• Potential Markets: Brazil, Russia, India and China

• US: 30% of the market

• Digital music sales increase: represent 58% of total music market.

ILLEGAL MUSIC DOWNLOADS: affect

artist record sales.

Bands need to start doing more tours

LIVE NATION

• + BUSINESS MODEL: - ARSTIST NATION (+200)- TICKETING (TICKETMASTER – 80% US)- SPONSORSHIP- CONCERTS

• + U$2.5 BILLION REVENUE 3Q14

• SALESFORCE, VICE AND YAHOO PARTNERSHIPS

60.000.000 FANS

3.000 ARTISTS

33 COUNTRIES

3RD ONLINE RETAILER

BIGGEST ENTERTAINMENT COMPANY IN THE WORLD

ENTERTAINMENT AND SOUTH AMERICA

• Strong economies: Brazil, Argentina and Chile are the biggest for Live Entertainment;

• Opportunity to introduce concert culture;

• Risks: Unstable economies: dollar rising, low growth, embargued countries;

• THEY ARE PASSIONATE FOR ENTERTAINMENT

BRAZILCOUNTRY GROWTH: 0.2%

GDP: U$2.456T

CHILECOUNTRY GROWTH: 0.8%

GDP: U$285BI

EUROMONITOR – TRADING ECONOMICS

BRAZILIAN MARKET

• GROWTH PROJECTION UNTIL 2018: 39%;

• MORE VENUES AVAILABLE: WORLD CUP STADIUMS;

• 2014: DEBUT OF ARENA ALLIANZ IN SP (AEG – PAUL MCCARTNEY);

• 2015: ROCK IN RIO, LOLLAPALOOZA, TOMORROWLAND, ROLLING STONES AND U2;

2013: U$140M 2014: U$200M2015: ?

Source: Estadao.com.br

YES! WE ARE GOING TO SOUTH AMERICA

HOW?ACQUISITION

T4F – BRAZIL AND CHILE

• Biggest entertainment company in SA

• 5 Venues in Brazil, 1 in Argentina

• Offices in São Paulo, Santiago and Buenos Aires

• Tickets For Fun (low penetration; 27 points of sales, Box Offices and Site)

• LN Partner

• Producer of Lollapalooza

• Expertise and Human Resources

• More than 2.3 million fans on social

Opportunities:

• Accumulate a debt of U$190MI (2014)

• Stock descreased 85% since being public

• Loss in Family and Performing Entertainment

55% REVENUE 2.2X EVENTS

-37% TICKETS SALE

-68% CASH FLOW

T4F Q2 2014 LIVE NATION

Bid:

U$190M*

Limit:

U$280M

ACQUISITION PROCESS - FINANCES

*T4F Financial Statements Q2 2014

PRESIDENT

FINANCIALLIVE

CONCERTSFAMILY

SALES AND MKT

HR AND OPERATIONS

SPORTS

OPERATION

• FOCUS ON LIVE ENTERTAINMENT, DIGITAL AND TICKETMASTER

PRESIDENT

FINANCIALLIVE

CONCERTS

DIGITAL AND MKT SPONSORSHIP TICKETMASTER HR

CEO

72% LIVE MUSIC27% FAMILY

AND THEATER2% SPORTS

LAUNCHLAUNCH (6 MONTH STRATEGY)

DIGITAL FOCUSSOCIAL NETWORKS

ONLINE MEDIA

MOBILE LAUNCH

TICKETMASTER

CONTENT STRATEGY

NEW ARTISTS NATION

PR SPONSORSHIP

ADVERTISING

LIVE NATION T4F MUSIC FESTIVAL

SÃO PAULO – STADIUM - LOCAL AND INTERNATIONAL ARTISTS

First bullet point here

EXPECTED

Concerts 1,200

Tickets per

concerts3,500

Average

Revenue per

Concert

U$164,500

Total

RevenueU$197,400,000

Net Income

(3.4%)U$6,111,600

SPONSORSHIPU$ 36,889,981

FORECAST

CONCERTS: 65% of full agendaSPONSORSHIP:U$30.750 per event

4-6 YEARS

BREAKEVEN

WE POTENTIAL MARKET

HOW? ACQUISITION

ADJUSTING THE STRUCURE

ARE

READYDIGITAL FOCUS AND

TICKETMASTER

4-6 YEARS OF BREAKEVEN

QUESTIONS?

THANK YOUTEAM 10

55% REVENUE 2.2X EVENTS

-37% TICKETS SALE

-68% CASH FLOW

T4F Q214

LIABILITIES AND ASSETS: U$190MI

LONG TERM DEBTS

U$12 MI

SHORT TERM DEBTS

U$82 MI

LIVE NATION

Bid:

U$190MI

Limit:

U$280MI

AQUISITION PROCESS - FINANCES

72% LIVE MUSIC27% FAMILY

AND THEATER2% SPORTS

TIMELINE - IMPLEMENTATION6 MONTH STRATEGY

ACQUISITION AND SOFT

ANNOUNCEMENT:

INVESTORS PLATFORM

AND SOCIAL MEDIA.

CRISIS MANAGEMENT

TEAM

ANNOUNCEMENT TO

THE EMPLOYEES WITH

NO CHANGES

IMPLMEMENTED

OPERATION CHANGE

ANNOUNCEMENT: FOCUS

ON LIVE ENTERTAINMENT

BUSINESS

5 ANNOUNCEMENT

CHANGES:

-COMPANY STRUCTURAL

CHANGES

-POLICIES

-VISION / MISSION

-NEW CULTURE

-OPERATIONS

BUSSINESS MODEL

FINAL CHANGES:

1.ANNOUNCEMENTS

2.FUTURE PLANS

3.NEW OPERATION

4.NEW POSITION

5.SPONSORSHIP LEADS

OFFICES:

- SAO PAULO HQ AND

CHILE SUPPORT OFFICE

- NEW KPI’S.

- FINAL HR ADJUSTMENTS

- FIRST HIRINGS

LAUNCH

MARKET

COMPANY

- FINAL HIRINGS AND

INTERNAL STRUCTURES

ADJUSTMENTS

- IMPLEMENTANTION OF

NEW HR POLICIES

START M2

START M2

M4

M4

M6

M6

CONSERVATIVE

Concerts 1,200

Tickets per

concerts2,100

Average

Revenue

per Concert

U$98,700

Total

RevenueU$118,440,000

Net Income

(1%)U$1,184,400

First bullet point here

EXPECTED

Concerts 1,200

Tickets per

concerts3,500

Average

Revenue per

Concert

U$164,500

Total

RevenueU$197,400,000

Net Income

(3.4%)U$6,111,600

AMBITIOUS

Concerts 1,200

Tickets per

concerts5,600

Average

Revenue per

Concert

U$263,200

Total Revenue U$315,840,000

Net Income

(10%)U$31,584,400

SPONSORSHIP = U$ 36,889,981

FORECAST

CONCERTS: 65% of full agendaSPONSORSHIP:U$30.750 per eventSPONSORSHIPS: Avg of 2012; 2013

5-7 YEARS

4-6 YEARS

3-4 YEARS

BREAKEVENS