mediaset roadshow april2016 downloadplit/mediaset... · 2016. 4. 20. · italy fy 2015 |...

Mediaset Roadshow

18th – 21st April 2016

FY 2015 Broadcasting & Advertising

ITALY FY 2015 | Economic scenario & advertising market

HIGHLIGHTSHIGHLIGHTS

MACRO‐ECONOMIC KEY INDICATORS ARE SLIGHTLY BUT CONTINUOUSLY IMPROVING

BUSINESS AND CONSUMER CONFIDENCE INDEXES ARE GROWING EVEN BETTER THAN KEY ECONOMIC INDICATORS

COMBINATION OF REAL HARD FACTS WITH POSITIVE “MARKET SENTIMENT” HELP ADVERTISING DYNAMICS: FIRST WEAK POSITIVE SIGNALS AFTER YEARS OF RECESSION

GROWTH DRIVER IS “VAD DYNAMICS”, I.E. VIDEO‐AUDIO‐DIGITAL PARADIGM IN ADVERTISERS STRATEGIES

| 3 |

ITALY FY 2015 | Advertising trend & Media dynamics

More than 80% of adv expenditure is represented byVAD (Vid A di & Di it l) TV RADIO DIGITALVAD (Video, Audio & Digital) TV, RADIO e DIGITAL

h di3

16.3

Other media

Press

48 1

4.9TV Radio

48.1

27.7 Digital

Source: AC Nielsen official audited data + AC Nielsen estimates for Digital non audited segments (social & search)

| 4 |


ITALY FY 2015 | Advertising trend by Medium

0 7TOTAL TELEVISION

‐0.7

8.8

0.7

INTERNET PREMIUM PUBLISHER

TOTAL RADIO

TOTAL TELEVISION

8.5

11.4TOTAL INTERNET

INTERNET REST OF MKT (NON AUDITED)

10 2

‐4.1

‐6.6

OUT OF HOME

MAGAZINES

NEWSPAPERS

+1,7

‐4.1

10.2

TOTAL MEDIA

CINEMA

OUT OF HOME

Note: Press includes all adv typolgies. Out of home includes Out of home + OutdoorS i l ffi i l di d d i l i f i i l di d ( i l & h)

‐0,5

,TOTAL MEDIA W/O DIGITAL N.A.

| 5 |


MEDIASET FY 2015 | Performance on core business

HIGHLIGHTS

GOOD COMBINED PERFORMANCE MAINSTREAM VS MULTICHANNEL AUDIENCE CONSOLIDATES LEADERSHIP ON COMMERCIAL TARGET

BETTER THAN MARKET PERFORMANCE BOTH FOR REVENUE TREND AND MKT SHARE DYNAMICS

BETTER THAN DIRECT COMPETITORS, IN CORE MAINSTREAM TV AND IN PAY TV

CONSOLIDATED POWER RATIO (ADVERTISING SHARE VS GRP’S SHARE)

SECTOR ANALYSIS : EVIDENCE OF INCREASING SHARE PENETRATION & BETTER THAN MARKET PERFORMANCE IN KEY SECTORS (GROWING SECTORS AS RETAIL AND PHARMA AND CORE SECTORS AS FMCG & AUTOMOTIVE)PHARMA AND CORE SECTORS AS FMCG & AUTOMOTIVE)

| 6 |

ITALY FY 2015 | TV-related consumption2015 2014

AVERAGE DAILY TV‐RELATED CONSUMPTION ‐ FULL DAY

LINEAR TV 71,7% OF DAILY TIME BUDGET FOR ADULTS+15

2015 vs 2014

7.7%262

CONSUMPTION FULL DAY

VIEWERS 4 + YEARS (in minutes)

BUDGET FOR ADULTS+15

71.7%7.7%

4.5%

16 1%

262 254

16.1%

Source: Auditel

2014 2015

Source: Tssp Gfk/Eurisko

| 7 |

ITALY FY 2015 | Daily time budgetIt li P l ti

Ad. +14 Tot: 311’ Ad. 15/64 Tot: 305’ Ad. 15/34 Tot: 308’

Italian Population

8.5 3.9

19 7

7.5 3.2

24

7.7 4.6

19.7 2416

67.9 65.371.7

LINEAR TV RADIO NATIONAL ONLY PRESS DIGITAL PC MOBILE


LINEAR TV RADIO–NATIONAL ONLY PRESS DIGITAL PC+MOBILE

| 8 |


ITALY FY 2015 | TV-related consumption2015 2014

CLASSIC LINEAR TV 2014CLASSIC LINEAR TV 2015

AVERAGE DAILY TV‐RELATED CONSUMPTION

2015 vs 2014

VIEWERS 4+ YEARS(in minutes)

15‐34 YEARS(in minutes)

15‐64 YEARS(in minutes)

ONLINE TV RELATED

323 323

337 339

262 262 161431531414 16

300 299246 243

323 3231916

S A dit l + l b ti A di b d t

2014 20152014 20152014 2015

| 9 |

Source: Auditel + elaboration on Audiweb data

ITALY FY 2015 | TV Audience share – Core channels vs MultichannelsC i l T t 15 64 24 hCommercial Target, 15-64, 24 hours

3,1Mediaset 27,6 26,9

La7‐0.1

CORE CHANNELS 2014 2015

36,231.5

MediasetRaiLa7

27,625,32,6

26,924,72,5

Mediaset

Rai ‐0.6

13Mediaset DTT (Free+Pay) 9,1 9,2

‐0,6MULTICHANNELS

8.77.513 Rai DTT

Discovery**Sky ChannelsFox Channels

6,86,86,62,0

6,87,57,01,8Sky+Fox

+0 2

Other+0.4

Discovery

S A dit l

La7 D 0,6 0,6+0.2Discovery+0.7

| 10 |

Source: Auditel

ITALY FY 2015 | Advertising revenues – Progressive and trend

L 7

3,9

La7‐0,4 pts

Rai‐0,6 pts

CORE CHANNELSMediasetRaiLa7

67,9%26,2%5 9%

68,7%25,8%5 5%

2014 2015

57.66 2

20.6

MediasetDiscovery

La7 5,9% 5,5%

Mediaset 37,9% 35,1%MULTICHANNELS FREE

11.7

6.2

Sky+Fox

+ 0,2 ptsDiscovery+1,1 pts Rai

DiscoverySky

,15,2%35,1%11,7%

,13,3%37,2%14,3%

y‐ 0,2 pts

MediasetDiscovery

20,2%1,8%

MULTICHANNELS PAY22,9%1,7%

Source:Nielsen

Sky 78,0% 75,4%

| 11 |

Source:Nielsen

MEDIASET FY 2015 | Total advertising revenuesE lEuro ml

1982.42002.8+ 1,0%

Euro ml

2014 2015

| 12 |

ITALY FY 2015 | Trade and consumption AdExV lVolume

12M15 vs 12M14FMCGFood

SALES+1.2%+1 4%

ADEX+4.6%+7 3%Food

HousekeepingPersonal care

+1.4%+1.8%+0,8%

+7.3%+8.8%‐1.8%

BRANDED FMCGPRIVATE LABELAUTOMOTIVE

+1.0%+1.7%+15.7%

+4.6%‐‐‐‐‐‐‐+0.0%

CLOTHINGTELECOMS

+0.9%+3.3%

‐5,3%‐8.3%

S Ni l C f i UNRAE

| 13 |

Source: Nielsen, Confcommercio, UNRAE

ITALY FY 2015 | Advertising Breakdown by Sector

OtherOther‐13.7% 3.8%

17 5%

MDS TREND better than Total Adv Market

MDS SHARE better than Total Adv Market

Food+10.0%

Retail+18.7% 24.8%

17.5%

5.9%

Pharma+9.6%

7.3%

4 7%No Food‐1.6%

Media‐9.2%

11.5%9.2%

15.4%4.7%

Source: Nielsen

TLC‐8.8%

Auto+5.8%

| 14 |

Source: Nielsen

MEDIASET FY 2015 | Adv evolution: diversification and development

PROTECTION OF CORE BUSINESS VIA DEVELOPMENT OF A DIVERSIFIED OFFER

HIGHLIGHTS

VIDEO STRATEGY OFFER – TV & DIGITAL SINERGY

AUDIO‐VIDEO OFFER – TV & RADIO SINERGY CROSS SELLING OPPORTUNITY

ADVERTISING & CONTENT MKTG SINERGY

TV & CROSSMEDIA SINERGYTV CORE BUSINESS

OPPORTUNITY

TV & CROSSMEDIA SINERGY

Combined Video & Audio LeadershipOver 90% Combined Audience Reach

l ll d

TV CORE BUSINESS

Positive Revenue Growth 2015Rev.Share Increase (Free & Pay)M i i P R i Delivery vs All Target Audiences

ADV & CONTENT MKTG SINERGY

Monetization Power Ratio

TV & DIGITAL SINERGY

| 15 |

CrossMedia Branded Integration2,5% turnover contribution+60% y.o.y growth

17 % Premium Publisher Mkt75 % Digital Audience ReachYahoo & Shazam Partnerships

| 15 |

FY 2015 Financials

MEDIASET GROUP FY 2015 | P&L Highlights

Net Consolidated RevenuesItaly

(Euro ml.) FY 2014

3,524.82 554 2

FY 2015

3,414.42 483 4Italy

Spain

EBITDA

2,554.2971.9

1,365.9

2,483.4932.1

1,332.4ItalySpain

EBIT

938.8427.8

231 4

969.8363.1

248 7EBITItalySpain

231.426.8

205.2

248.7104.3144.8

NET PROFIT (adjusted)*NET PROFIT (reported)

Group Net Financial Position

29.04.0

(859 4)

23.723.7

(861 3)Group Net Financial PositionItalySpain

(859.4)(1,051.8)

192.4

(861.3)(1,127.0)

265.7* 2015 net result has been affected by a one-off of 24.9 millions coming from the remeasurement of deferred tax assets due to the reduction in the t t f 27 7% t 24% h d l d f 2017 i t d d b th 2016 St bilit L (L f 2015 28th d b 208)

| 17 |

tax rate, from 27.7% to 24%, scheduled from 2017, introduced by the 2016 Stability Law. (Law of 2015, 28th december n.208).

MEDIASET ITALIAN BUSINESS FY 2015 | Integrated Tv activities

Total Net Revenues

FY 2015FY 2014(Euro ml.)

2,428.6 2,490.0Total Gross advertising revenues

Commissions

Total Net Advertising Revenues

1,982.4

(288.4)

1,694.1

2,002.8

(292.9)

1,709.9g

Pay Tv Revenues

Other Revenues

Total Costs

538.4

196.2

(2 390 0)

558.8

221.3

(2 536 8)Total CostsPersonel costs

Other operating costs

(2,390.0)(388.1)

(1.002.7)

(1 390 8)

(2,536.8)(373.3)

(1,113.9)

(1 487 2)Total Operating Costs

Rights Amortisation

Other Amortisation & Depreciation

(1,390.8)

(724.9)

(97.5)

(1,487.2)

(792.3)

(80.4)

Intra-company items

Integrated Tv Activities Operating profit

(176.8)

38.6

(176.9)

(46.9)

| 18 |

MEDIASET ITALIAN BUSINESS FY 2015 | Investments

(Euro ml )

FY 2015FY 2014

369.2

(Euro ml.) TV rights and cinema

T h i l & i t i l

391.1

23.2Technical & immaterial

70.3

Sports TV rights

1,110.0 87.9

Total Investments 549.31,502.5

| 19 |

MEDIASET ITALIAN BUSINESS FY 2015 | Cash flow statement

Initial Net Financial Position (01/01)

Cash Flow from Core Activities

(Euro ml.)

(1,127.0)

113 0

FY 2014 FY 2015

(1,552.5)

135 7Cash Flow from Core ActivitiesCash Flow from Operations

Investments

Disinvestments

113.0862.3

(549.3)

3 0

135.7869.9

(1,502.5)

16 6Disinvestments

Change in Net Working Capital (CNWC)

Equity (investment)/ disinvestment

Free Cash Flow

3.0

(203.0)

66.4

179 4

16.6

751.8

305.5

441 2Free Cash Flow

Payed dividends

Cashed-in dividends

Change in consolidation area

179.4

(41.3)

22.5

(85 4)

441.2

0.9

(16 6)Change in consolidation area

Total Net Cash Flow

Final Net Financial Position (31/12)

(85.4)

75.2

(1,051.8)

(16.6)

425.5

(1,127.0)

Group Final Net Financial Position (31/12)

Proposed Dividends to be confirmed by the AGM

(859.4)

22.7(861.3)

22.7

| 20 |

Back up

MEDIASET ITALIAN BUSINESS FY 2015 | P&L results

Net Consolidated Revenues

(Euro ml.)

2,554.2

FY 2014 FY 2015

2,483.4Personnel Costs

Other Operating Costs

EBITDA

,(415.5)

(1,199.9)

938.8

,(431.3)

(1,082.3)

969.8EBITDARights Amortisation


Operating Profit

938.8(792.3)

(119.7)

26 8

969.8(724.9)

(140.5)

104 3Operating ProfitFinancial Income (Losses)

Associates

P T P fit

26.8(49.4)

1.1

(21 4)

104.3(70.4)

19.4

53 3Pre-Tax ProfitTaxes

Minorities

(21.4)(33.7)

(19.2)

53.3(31.7)

(20.3)

NET PROFIT (adjusted)**NET PROFIT (reported)

(49.5)(74.4)

1.41.4

* 2015 net result has been affected by a one-off of 24.9 millions coming from the remeasurement of deferred tax assets due to the reduction in the tax rate, from 27.7% to 24%, scheduled from 2017, introduced by the 2016 Stability Law. (Law of 2015, 28th december n.208).

| 22 | Note: 2014 figures has been restated due to Purchase Price Allocation policy over the value of EI Towers’ 2014 acquisitions

, , y y ( , )

MEDIASET ITALIAN BUSINESS FY 2015 | EI Towers

(Euro ml.) FY 2014 FY 2015

Total Net RevenuesThird-Party Revenues

Intra-company items

244.464.3

180.2

235.054.8

180.2Intra company items

Total CostsPersonnel

(170.8)(42.2)

(169.3)(43.3)

Other operating Costs


Intra-company items

(86.0)

(39.3)

(3.3)

(79.6)

(43.1)

(3.4)p y

EI Towers Operating Profit

( )

73.7

( )

65.7

Note: 2014 Results restated due to Purchase Price Allocation

| 23 |

Note: 2014 Results restated due to Purchase Price Allocation

MEDIASET ITALIAN BUSINESS FY 2015 | Balance Sheet

2 370 2

FY 2014(Euro ml.)

2 017 9

FY 2015

Film & Television Rights 2,370.2

269.7

829 1

2,017.9

323.9

890 9

Film & Television Rights

Goodwill and consolidation differences

Other tangible and intangible assets 829.1

1,006.8

(805.7)

890.9

1,028.7

(652.3)

Other tangible and intangible assets

Equity investments & Financial assets

Net working capital & other assets/liabilities (805.7)

(96.9)

3,573.1

(652.3)

(89.1)

3,520.0

g p

Post-employment benefit plans

Net Invested Capital

2,362.2

83.9

2,358.3

109.9

Group shareholders’ equity

Minority interests

2,446.2

(1,127.0)

2,468.2

(1,051.8)

Total Shareholders’ equity

Net financial position

| 24 |

Note: 2014 Figures restated due to Purchase Price Allocation policy over the value of EI Towers’ 2014 acquisitions

MEDIASET SPANISH BUSINESS | Back up Slides

MEDIASET ESPANA FY 2015 | P&L Results


P l C t

(Euro ml.)

971.9

(105 0)

FY 2014 FY 2015

932.1

(106 2)Personnel Costs


EBITDA

(105.0)

(439.1)

427.8

(106.2)

(462.8)

363.1EBITDA

Amortisation & Depreciation

EBIT

(222.7)

205.2

(218.3)

144.8

Financial Income (Losses)

Associates

P T P fit

0.1

13.9

219 1

-

(59.2)

85 5Pre-Tax Profit

Taxes

Net Profit

219.1

(53.2)

166.2

85.5

(30.0)

59.5

| 26 |

MEDIASET ESPANA FY 2015 | Investments

(Euro ml )

FY 2015FY 2014

179.3 168.8

(Euro ml.) Tv rights and cinema

9.4

Co-production

15.8

15.08.2Tangible & Intangible fixed assets

Total Investments203.3 193.2

| 27 |

MEDIASET ESPANA FY 2015 | Cash Flow Statement

Initial Net Financial Position

(Euro ml.)

265.7

FY 2014 FY 2015

93.5

Free Cash Flow

- Cash Flow from Operations

I t t /Di i t t

218.7

420.5

(193 2)

144.7

356.6

(203 3)- Investments/Disinvestment

- Change in Net Working Capital (CNWC)

Change in Equity

(193.2)

(8.6)

1.1

(203.3)

(8.6)

9.9g q y

Equity (Investments)/Disinvest.

Cashed in Dividends

(9.1)

2.1

323.23

1.9

Dividends

Own stock purchase

Total Net Cash Flo

(47.5)

(238.6)

(73 3)

-

(307.5)

172 2Total Net Cash Flow

Final Net Financial Position (31/12)

(73.3)

192.4

172.2

265.7

| 28 |

MEDIASET ESPANA FY 2015 | Balance Sheet

211 8

FY 2014(Euro ml.)

189 0

FY 2015

Film & Television Rights 211.8

287.4

282 8

189.0

288.1

275 5



Other tangible and intangible assets 282.8

16.3

125.5

275.5

29.7

95.1



Net working capital & other assets/liabilities 125.5

-

923.7

95.1

-

877.5

g p



1,181.1

8.3

1,061.7

8.2


Minority interests

1,189.4

265.7

1,069.9

192.4



| 29 |

MEDIASET GROUP FY 2015 | P&L results


(Euro ml.)

3,524.8

FY 2014 FY 2015

3,414.4Personnel Costs


EBITDA

,(520.5)

(1,638.4)

1,365.9

,(537.5)

(1,544.5)

1,332.4EBITDARights Amortisation


Operating Profit

1,365.9(997.3)

(137.2)

231 4

1,332.4(924.1)

(159.7)

248 7Operating ProfitFinancial Income (Losses)

Associates

P T P fit

231.4(49.3)

15.0

197 2

248.7(70.4)

(39.8)

138 5Pre-Tax ProfitTaxes

Minorities

197.2(86.6)

(106.6)

138.5(61.7)

(53.3)

NET PROFIT (adjusted)**NET PROFIT (reported)*

29.04.0

23.723.7

* 2015 net result has been affected by a one-off of 24.9 millions coming from the remeasurement of deferred tax assets due to the reduction in the tax rate from 27 7% to 24% scheduled from 2017 introduced by the 2016 Stability Law (Law of 2015 28th december n 208)

| 30 |

the tax rate, from 27.7% to 24%, scheduled from 2017, introduced by the 2016 Stability Law. (Law of 2015, 28th december n.208).

MEDIASET GROUP FY 2015 | Consolidated Balance Sheet

2 581 4Film & Television Rights

FY 2014(Euro ml.)

2 205 9

FY 2015

2,581.4

920.2

1 111 9




2,205.9

975.1

1 166 51,111.9

70.3

(680.0)



Net working capital & other assets/liabilities

1,166.5

105.7

(556.8)(680.0)

(96.9)

3,906.8

g p



(556.8)

(89.1)

3,807.1

2,322.8

722.6


Minority interests

2,293.9

653.8

3,045.5

(861.3)



2,947.8

(859.4)

| 31 |

Mediaset - Vivendi Strategic Alliance

Deal’s details

MEDIASET – VIVENDI | Deal structure

• The strategic nature of the alliance is strengthened by an exchange of shares between Mediaset and Vivendi Groups

• The deal is articulated in 2 transactions due to be executed simultaneously:y

1. Mediaset will transfer 41.3ml treasury shares to Vivendi, corresponding to 3.50% of the company’s share capital, based on a price of 3.32€ (*) per share. In exchange, Mediaset will receive 7.4 ml existing (treasury) or newly issued Vivendi shares, equal to 0.54% of Vivendi’s share capital based on a price of 18 65 € (*) per share At the same timeshare capital, based on a price of 18.65 € ( ) per share. At the same time,

2. RTI will transfer to Vivendi 100% of the share capital of Mediaset Premium in exchange of 40.5 ml existing (treasury) or newly issued Vivendi shares, corresponding to 2.96% of Vivendi’s share capital, based on a price of 18.65 € (*) per share. Mediaset Premium equity value has been determined assuming a target NFP at the closing date of 120 ml € cash.

• Vivendi, Mediaset and RTI have committed themselves on a three-year lock-up agreement on the respective listed shares.

• Pursuant to the Shareholders’ Agreement and the by-laws of Mediaset Premium, Mediaset has a drag-along right over the 11.11% stake owned by Telefonica

• The agreement between Mediaset and Vivendi is subject to the necessary authorisations of the relevant Antitrust authoritiesrelevant Antitrust authorities.

• Closing date is expected by September 30th 2016.

(*) last three months average closing price (Jan 8th 2016 Apr 7th 2016)

| 33 |

( ) last three months average closing price (Jan 8th 2016 – Apr 7th 2016)

FY 2015 | Main P&L Pro-forma data (ex Mediaset Premium SpA)

Total Net Revenues

GroupIntegrated TV(Euro ml.)

2,039.7 3,074.6

Italian Business

2,104.0Total Gross advertising revenues

Commissions

Total Net Advertising Revenues

2,002.8

(292.9)

1,709.9

2,002.8

(292.9)

1,709.9

Other Revenues

Third-Party EI Towers Revenues

Total Costs

329.9

-

(1 973 0) (2 729 6)

329.9

64.3

(1 963 6)Total CostsPersonel costs

Other operating costs

T t l O ti C t

(1,973.0)(344.5)

(911.1)

(1 255 6)

(2,729.6)(491.7)

(1,435.6)

(1 927 3)

(1,963.6)(386.7)

(997.1)

(1 383 8)Total Operating Costs

Rights Amortisation


(1,255.6)

(472.8)

(67.7)

(1,927.3)

(677.8)

(124.5)

(1,383.8)

(472.8)

(107.0)

Intra-company items

Operating profit

(176.9)

66.8

-

345.1

-

140.4

P f d t h b d th b i f th 2015 dit d t

| 34 |

Pro forma data have been prepared on the basis of the 2015 audited accounts

Investor Relations Department:

Tel: +39 02 2514.7008Fax: +39 02 2514.6719Email: [email protected] bSit di t it/i t

Forward-looking StatementsStatements contained in this document particularly the ones regarding any Mediaset Group

WebSite: www.mediaset.it/investor

Statements contained in this document, particularly the ones regarding any Mediaset Grouppossible or assumed future performance, are or may be forward looking statements and inthis respect they involve some risks and uncertainties.

Mediaset Group actual results and developments may differ materially from the onesexpressed or implied by the above statements depending on a variety of factors.

Any reference to past performance of Mediaset Group shall not be taken as an indication offuture performance.

This announcement does not constitute an offer to sell or the solicitation of an offer to buythe securities discussed herein.

The executive responsible for the preparation of the Mediaset S.p.A. accounts, LucaMarconcini, declares that, as per para. 2 art. 154-bis, of the “Testo Unico della Finanza”, thatthe accounting information contained in this document corresponds to that contained in thecompany’s books.

mediaset roadshow april2016 downloadplit/mediaset... · 2016. 4. 20. · italy fy 2015 |...

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