US Roadshow Presentation. April 2008

Transcription

1 US Roadshow Presentation April 2008

2 Mediaset s TV Strategy Approach Content Content production production and and creation creation Content Content packaging packaging and and programming programming Recent acquisitions/renewal: Recent acquisitions/renewal: -Endemol -Endemol -Medusa -Medusa -Taodue -Taodue -Serie A football rights -Serie A football rights -Warner/Universal deals -Warner/Universal deals Business Model Business Model FTA FTA TV TV (B2B) (B2B) PAY PAY TV TV (B2C) (B2C) Niche Niche (B2B2C) (B2B2C) Multi-platform distribution strategy (Analogue, DTT, Satellite, IP, Broadband, Mobile) Multi-platform distribution strategy (Analogue, DTT, Satellite, IP, Broadband, Mobile) 2

3 Entertaiment Industry Audience Fragmentation Effect Two main business models have proven to co-exist Mainly Advertising Audience (Analog/digital) + Mainly Pay-TV(digital) - Generalistic Content Theme Content Niche Content Mass Market Audience Fragmented Audience Long Tail Audience Concentration Fragmentation 3

4 Mediaset s strategic approach Audience FTA TV + FTA Multichannel to be launched in Spring Pay TV Various Business Model - Generalistic Content Theme Content Niche Content Mass Market Audience Fragmented Audience Niche Audience Concentration Fragmentation 4

5 FREE TO AIR PAY TV NICHE FINANCIALS BACK UP

6 AUDIENCE 2007 Mediaset Leadership on Commercial Target (4-64 years) Source: Auditel, 24 Hours, (% audience share) 6

7 AUDIENCE 2007 Channel Ranking (24 Hours) yrs 4-14 yrs yrs yrs ITALIA1 CANALE 5 RAI1 RAI 2 RAI 3 RETE 4 LA CANALE 5 ITALIA1 RAI1 RAI 2 RAI 3 RETE 4 LA CANALE 5 ITALIA 1 RAI1 RAI 2 RAI 3 RETE 4 LA CANALE 5 RAI1 ITALIA 1 RAI2 RAI3 RETE 4 LA MEDIASET RAI MEDIASET RAI MEDIASET RAI MEDIASET RAI yrs yrs 65+ yrs CANALE 5 RAI1 RAI2 ITALIA 1 RAI3 RETE 4 LA RAI1 CANALE 5 RAI2 RAI3 RETE 4 ITALIA 1 LA RAI1 CANALE 5 RETE 4 RAI3 RAI2 ITALIA 1 LA MEDIASET RAI MEDIASET RAI MEDIASET RAI Source: Auditel, 24 Hours, (% audience share) 7

8 Cult NatGeo Wild Discovery Science History Channel National Geographic Channel +1 AUDIENCE 2007 Sky Italia Bouquet 0.47% First 40 Channels: 5.56 % Audience Share Fox Crime Sky Sport 1 Sky Cinema 1 Fox Life Fox Disney Channel Playhouse Disney Sky Cinema 2 Sky Cinema 3 Sky Cinema Max Sky Cinema 16:9 Sky Vivo FX Sky Cinema Mania Disney Channel +1 Sky Calcio 1 Sky TG24 RaiSat Premium Sky Sport 2 Fox Crime +1 Sky Cinema Classics Discovery Real Time RaiSat Extra Sky Super Calcio Rai Sport Satellite Sky Sport 3 Rai Gulp RaiSat Cinema Fox +1 Fox Life +1 Discovery Channel RaiSat Yoyo RaiSat Smash National Geographic Channel RaiSat Gambero Rosso Sky Calcio 2 Source: Auditel, Individuals, 24 Hours, from April 2007 (% audience share) 8

9 AUDIENCE 2007 Advertising Spot Audience Sky Italia Bouquet 0-30,000 Ø 48.7% 40.7% 10.6% >30,000 Total 48,103 breaks on 86 Channels Canale 5 Advertising Spot Audience: Source: Auditel, 24 Hours, Individuals - December

10 MEDIASET 2007 Total FTA TV Cost trend E CAGR -0.8% Including nonrecurring item 1.8% 1.9% 2.3% 1,8% 0.4% MEDIASET Inflation (*) MEDIASET Inflation (*) Total TV Costs = Personnel Costs + TV Operating Costs + TV Rights D&A+ Other D&A (*) Source: ISTAT

11 MEDIASET 2007 Advertising Revenues +1.1% 2, ,880.6 ( Euro ml.)

12 MEDIASET First Hints on % (Euro ml.) Jan - Feb 2007 Jan - Feb

13 FREE TO AIR PAY TV NICHE FINANCIALS BACK UP

14 Italian Pay TV market Growth estimates Source 2010E (Euro mil.) CAGR (2007E-2010E) PricewaterhouseCoopers LLP,Wilkofsky Gruen Associates June 2007 (1 USD = Euro) 4, % E-media, UPA January , % Informa Telecoms and Media Western Europe TV September 2007 (1 USD = 0.80 Euro) 3, % 14

15 Live from January 19, 2008 Young Families Young Women ARPU growth Higher Operating Leverage Cost Synergies with FTA TV Improve Mediaset Multiplatform Strategy Young Men 15

16 Mediaset Premium Active Clients 2,487,000 2,067,000 1,853,000 1,560, Season Season July August September October November December January February 23March Source: Company data, until 23 March

17 Mediaset Premium Gross Addiction From January 19, ,530 Average Gross Addiction per Day (vs. 2,390 previous year ) 1 January January March 2008 Source: Company data, until 23 March

18 FREE TO AIR PAY TV NICHE FINANCIALS BACK UP

19 Mediaset s Approach Niche Audience Mediaset is testing all platform/ business models Home Shopping Internet based platform Digital Merchandising (VAS) Mobile DVB-H / UMTS Participation TV Merchandising Music 19

20 Mediaset s Approach Home Shopping Direct Marketing Retail Internet C5, I1, R4 Windows 24h Channel on Dtt & Satellite Catalogue and Print Production and post Production Facilities Retailing and Marketing Customer Service Delivery and Logistics Over 20 ml TV contacts each day Over 1.3 ml clients 60% Revenues from windows and 24h Channel From Jan. to Dic. 2007: average orders per month euro, average revenue per order 20

21 Mediaset s Approach Internet platform Through internet platform Mediaset offers: MULTIPLATFORM NEWS SERVICE COMMUNITIES and USER GENERATED CONTENT VIDEO ON DEMAND 21

22 Mediaset s Approach Internet platform MULTIPLATFORM NEWS SERVICE Unique Users: per month Page Impressions: per month Source: Nielsen NetRatings 22

23 Mediaset s Approach Internet platform COMMUNITIES and USER GENERATED CONTENT Unique Users: up to per month Page Impressions: up to per month 120 SECONDS 120 SECONDS Wanna-be reporters can share and publish their work on this section of the TGCom website LE IENE LE IENE On the website of one of Mediaset most popular tv shows people can share funny videos and candid cameras 6 COME 6 6 COME 6 Viewers can shoot their own Italia 1 channel promotional video. The best works will be broadcast on FTA TALENT 1 TALENT 1 Singers, dancers and young film directors can promote themselves by sharing their perfomance samples on the web Source: Nielsen NetRatings 23

24 Mediaset s Approach Internet The best content from all Mediaset platforms is also available on demand through its PC Television service VIDEO ON DEMAND Unique Users: up to per month 135 million videos watched since launch in April 2007 DOWNLOAD AND PLAY Content available for download upon payment (e.g. TV Series: EUR 1.99 per episode) STREAMING WITH ADVERTISING Content can be viewed on line with advertising windows Italian Fiction US TV Series Live Football Matches Movies Entertainment shows Source: Nielsen NetRatings 24

25 Mediaset s Approach Mobile WAP based mobile site that integrates a wide offer of textual and proprietary audiovisual content, delivered via all the mobile operators portals under the umbrella brand mediaset.it Main operator in Italy on the DVB-H technology both on content and transmission broadcasting side FTA Canale 5 Italia 1 Premium Serie A Italian League Rete 4 Boing Uefa Champions League 25

26 FREE TO AIR PAY TV NICHE FINANCIALS BACK UP

27 MEDIASET GROUP P&L Consolidated Results (Euro ml.) % Net Consolidated Revenues 3, , % EBITDA 1, , % EBIT 1, , % Group Net Profit % 27

28 MEDIASET GROUP P&L Consolidated Results (Euro ml.) 2007 Consolidated 2007 Mediaset 2007 Telecinco Consolidation Effects Net Consolidated Revenues 4, , ,081.6 (1.6) EBITDA 2, , EBIT 1,

29 MEDIASET ITALIAN BUSINESS P&L Results (Euro ml.) Net Consolidated Revenues Personnel Costs Other Operating Costs EBITDA Rights Amortisation Other Amortisation & Depreciation Operating Profit Gain (Losses) from Equity disinvest. EBIT Financial Income (Losses) Associates Pre-Tax Profit Taxes Tax rate NET PROFIT 2,751.5 (373.1) (1,066.5) 1,311.9 (602.5) (113.8) (30.2) (221.7) 39.0% ,002.1 (377.6) * 1, ,487.3 (688.9) (134.6) (56.2) (276.9) 45.5% * Including 23.0 ml. non-recurring income from the application of the new Italian pension reform applied to the employee retirement fund (TFR), as of 31/12/2006, and in compliance with the IFRS 29

30 MEDIASET ITALIAN BUSINESS Operations Breakdown (Euro ml.) Total Net Revenues Operating Profit Margins FTA TV 2, % Network Operator % Pay TV (39.5) n.a. Other Activities (7.0) n.a. Intra-company eliminations (157.5) - Adjustments - (1.2) TOTAL 3, % 30

31 MEDIASET ITALIAN BUSINESS FTA TV (Euro ml.) Total Net TV Revenues TV Advertising Revenues Multichannel Adv. Revenues Commissions Other TV Revenues Total TV Costs Personnel TV Operating Costs 2, , (425.4) 69.3 (1,846.1) (318.9) (811.9) 2, , (429.2) 78.0 (1,831.3) (317.6)* (796.6) TV Rights Amortisations Other A&D Net Intra-company Items FTA TV Operating Profit margin (578.7) (57.1) (79.5) % (575.6) (60.0) (81.4) % * Including 21.6 ml. non-recurring income from the application of the new Italian pension reform applied to the employee retirement fund (TFR), as of 31/12/2006, and in compliance with the IFRS 31

32 MEDIASET ITALIAN BUSINESS Network Operator (Euro ml.) Total Net Revenues 3 Party DVB-T/DVB-H Revenues Other Revenues Net intra-company Items Total Costs Personnel Other Operating Costs Other Amortisation & Depreciation Network Operator Operating Profit (172.6) (32.6) (92.9) (47.1) (21.4) (180.0) (32.7) * (86.8) (60.5) 7.3 * Including 1.1 ml. non-recurring income from the application of the new Italian pension reform applied to the employee retirement fund (TFR), as of 31/12/2006, and in compliance with the IFRS 32

33 MEDIASET ITALIAN BUSINESS Pay TV (Euro ml.) Total Net PPV Revenues PPV Revenues Advertising Revenues Other Revenues Commissions Total PPV Costs Personnel Other Operating Costs Rights Amortisations and Other D&A Net intra-company items PPV Operating Profit (0.8) (128.5) (2.4) (70.5) (25.9) (29.6) (20.7) (1.1) (265.3) (3.2) * (123.2) (107.9) (31.1) (39.5) * Including 0.1 ml. non-recurring income from the application of the new Italian pension reform applied to the employee retirement fund (TFR), as of 31/12/2006, and in compliance with the IFRS 33

34 MEDIASET ITALIAN BUSINESS Other Activities (Euro ml.) Total Net Revenues Medusa 3 Party revenues (only 2H 2007) Medusa intra-company revenues Multimedia Mediashopping Other Non-TV Revenues Intra-company Items Total Costs Personnel Other Operating Cost Right Amortisations Other Amortisations & Depreciations Intra-company Items Other Activities Operating Profit (122.0) (18.5) (91.7) - (7.5) (4.2) (16.6) * Including 0.3 ml. non-recurring income from the application of the new Italian pension reform applied to the employee retirement fund (TFR), as of 31/12/2006, and in compliance with the IFRS (217.9) (23.9) * (130.8) (47.9) (8.2) (7.2) (7.0) 34

35 MEDIASET ITALIAN BUSINESS Investments (Euro ml.) TV rights and cinema PPV rights DTT Technical & immaterial Option rights * Total 1, Investments * Including ml. Medusa TV Rights investment 35

36 MEDIASET ITALIAN BUSINESS Cash Flow Statement (Euro ml.) Initial Net Financial Position Free Cash Flow from Core Activities - Cash Flow from Operations - Investments - Disinvestments - Change in Net Working Capital (CNWC) Equity (Investments)/Disinvest. Free Cash Flow Cashed-in Dividends from Tele5/Others Dividends Change in equity (incl. Buyback Program) Change in consolidation area Total Net Cash Flow Final Net Financial Position Final GROUP Net Financial Position (713.8) ,087.3 (1,321.6) (489.3) (250.6) (964.4) (568.3) (964.4) ,161.1 (768.0) 4.1 (96.9) (64.4) (488.8) (2.8) (162.8) (257.6) (1,222.0) (1,208.8) 36

37 MEDIASET Dividend and FCF (Euro ml.) 489,3 478,6 466,9 448,8 517,6 488,8 488,8 471,8 370,5 216, ,2 247,8 219,8 282,9 271,3 247,4 123, Dividend FCF (*) (*) FCF excluding participation investment and one-off cash event 2006 and 2007 include T5 dividend 37

38 MEDIASET GROUP Leading Indicators Ebit Margin (ROS) * (%) 29.3% 25.0% 24.1% 26.8% 30.3% 30.2% 27.7% 28.1% Net Profit (Euro ml.) Free Cash Flow ** (Euro ml.) Earnings per Share (Euro) Dividend per Share (Euro) **** Distributed Dividend (Euro ml.) **** Pay-out Ratio (%) 67% 67% *** 68% 73% 81% 81% 97% 97% From 2004 IFRS/IAS (*): Italian Business (**) Italian Business, excluding Associates Investments and Tele5 Dividend (***): excluding Kirch Media extraordinary provisions (****): to be approved by AGM, 16th April 2008; Buyback Shares are not eligible to receive Dividends 38

39 FREE TO AIR PAY TV NICHE FINANCIALS BACK UP

40 TELECINCO P&L Results (Euro ml.) Net Consolidated Revenues Personnel Costs Other Operating Costs EBITDA Amortisation & Depreciation EBIT Pre-Tax Profit NET PROFIT (79.5) (309.1) (169.4) (84.9) (318.1) (193.5)

41 TELECINCO Investments (Euro ml.) ml Euro ml Euro TV Rights Tangible & Intangible Fixed Assets 41

42 TELECINCO Cash Flow Statement (Euro ml.) Initial Net Financial Position Free Cash Flow Cash Flow from Operations Net Investments Change in Net Working Capital (CNWC) Change in equity Equity (Investments)/Disinvest. Cashed in Dividends Dividends Total Net Cash Flow Final Net Financial Position (144.9) (17.6) 3.9 (10.6) 1.2 (290.3) (185.3) (14.6) 24.7 (464.5) 1.2 (314.2) (383.0)

43 Investor Relations Department: Tel: Fax: WebSite: Forward-looking Statements Statements contained in this document, particularly the ones regarding any Mediaset Group possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Mediaset Group actual results and developments may differ materially from the ones expressed 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 of future performance. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein. The executive responsible for the preparation of the Mediaset S.p.A. accounts, Andrea Goretti, declares that, as per para. 2 art. 154-bis, of the Single Finance Bill, that the accounting information contained in this document corresponds to that contained in the company s books..