G E S T E V I S I Ó N T E L E C I N C O S. A. 2nd March 2006 ANALYST PRESENTATION

Transcription

1 G E S T E V I S I Ó N T E L E C I N C O S. A. 2nd March 2006 ANALYST PRESENTATION 1

2 INTERNATIONAL FINANCIAL REPORTING STANDARDS The consolidated financial results for the twelve months of 2005 are presented in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), valid at December 31 st The combined results for the twelve months of 2004, included for comparative purposes, are also presented in accordance with IFRS and IAS. The combined format includes the results for Publiespaña and Subsidiary Companies, while the consolidated format only includes the second, third and fourth quarter of 2004, after Gestevisión Telecinco took full ownership of Publiespaña. Therefore, the consolidated format excludes Publiespaña and Subsidiary Companies results for the first quarter of

3 G E S T E V I S I Ó N T E L E C I N C O S.A. BROADCASTING PAOLO VASILE, CEO

4 We have said... About the audience share About the Programming About the Cost Control About delivering Results About shareholders satisfaction BROADCASTING 4

5 Leadership in Audience Share, 2005 Audience share 24h, Total Individuals , Telecinco Antena 3 TVE1 FORTA Telecinco consolidates its leadership and reaches again its historical maximum BROADCASTING 5

6 Leaderhip in Audience Share, 2005 Audience share 24h, Total Individuals ,8 17, , ,3 17, ,0 19,2 19,5 19,3 17, ,8 16, ,5 20, ,5 16,0 15,9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic Telecinco Antena 3 TVE1 FORTA Telecinco has been the leading channel nine out of twelve months in 2005 BROADCASTING 6

7 Leaderhip in Audience Share, Telecinco has been the leading channel 200 days in 2005 BROADCASTING 7

8 Leadership in Audience Share, 2005 Audience share PRIME TIME (21:00-0:00), Total Individuals 32,7 31,2 22,2 17,2 13,3 23,3 18,8 15,7 28,8 25,0 19,1 15,4 28,1 24,7 19,6 16,2 27,0 24,6 21,1 16,2 25,3 22,9 21,4 17,8 25,6 22,8 20,5 17,3 23,3 21,9 22,1 18,1 24,3 22,4 20,8 18,1 26,4 24,4 20,9 20,6 19,8 18,6 18,2 17,6 23,9 23,1 22,3 21,4 21,2 18,6 18,3 17,4 23,5 21,8 19,5 17, Telecinco Antena 3 TVE1 FORTA Telecinco reaches in 2005 its best Prime Time audience rating BROADCASTING 8

9 Leadership in Prime Time 2005 Total Individuals (2005, January 1 st - December 31 st ) (Time Slot: 22:00-0:00) Telecinco s prime time programmes continue to deliver strong audience shares all throughout the week BROADCASTING 9

10 Leadership in Day Time 2005 Audience share Day Time, Total Individuals Resto Diff. Vs Telecinco is undisputed leader in Day Time BROADCASTING 10

11 Leadership in Commercial Target 2005 Audience share 24h, Comercial Target* Resto Diff. vs * Comercial Target = Audience group comprising individuals from 16 to 59 living in cities over inhabitants and across medium and upper social classes Telecinco is undisputed leader in Commercial Target BROADCASTING 11

12 Best Audience Ratings in all Time Slots, 2005 Audience share in % for FÓRMULA GRAN HERMANO:LA CASA EN DIRECTO OPERACION TRIUNFO KARLOS ARGUIÑANO EN TU COCINA OPERACION TRIUNFO:EL CHAT GRAN HERMANO VII GRAN HERMANO:EL DEBAT LA CASA DE TU VIDA HOSPITAL CENTRAL C.S.I. LAS VEGAS LOS SERRANO MOTIVOS PERSONALES AIDA EL COMISARIO CRONICAS MARCIANAS GRAN HERMANO VIP VIDAS EL PROGRAMA DE ANA ROSA GRAN HERMANO VIP 2:EL DEBATE C.S.I.MIAMI

13 Optimal Programming Mix In-house Production vs. Third-Party Rights 32% 30% 23% 19% 68% 70% 77% 81% In-house Production Third-Party Rights Telecinco increases in-house production to optimise business model BROADCASTING 13

14 ... As Film Ratings Fall RATINGS Source: SOFRES The number of films that achieve an audience share above 30% in Prime Time decreases while film costs increase BROADCASTING 14

15 Control on Operating Costs Total Operating Costs, million + 3.9% + 3.6% + 3.7% Spanish GAAP IFRS BROADCASTING 15

16 Our assets... 16

17 Our assets... 17

18 The Evolution, a Multichannel Platform Analog Broadcasting + Teletext DTT MPEG-2 MHP Internet ADSL Podcasting Digital Platform TELECINCO Mobil UMTS (3G) WAP DVB-H Cable Satellite TV via ADSL TL5 has developed a digital multi-channel platform to take advantage of all opportunities arising from the implementation of DTT in Spain 18

19 In the best Shape to face new Challenges New DTT Channels : 3 DTT Channels : 6 DTT Channels : 3 DTT Channels : 3 DTT Channels : 2 DTT Channels : 2 DTT Channels La Sexta: 2 DTT Channels Simulcast Analog Switch-Off : 1 Multiplex : 2 Multiplex : 1 Multiplex : 1 Multiplex : 1 Multiplex : 1 Multiplex La Sexta: 1 Multiplex Nov Nov For one of the channels will continue to be the simulcast channel April 2010 La Sexta: Low Coverage TL5 started broadcasting 2 new DTT channels at the end of

20 G e s t e v i s i ó n T e l e c i n c o S. A. BROADCASTING ADVERTISING GIUSEPPE TRINGALI, CEO

21 Taking Advantage of a growing Advertising Market +8,1% +10,2% +4,3% Fuente; Infoadex +12,9% +4,1% +27,7% +5,3% TTM TV M. IMPRESOS RADIO EXTERIOR INTERNET CINE 10 ADVERTISING 21

22 Leadership in Spanish TV Advertising Market % -2.8% +19.2% % +1.8% TELECINCO TVE Antena 3 FORTA Canal Cuatro Source: InfoAdex ADVERTISING 22

23 Leadership in Advertising Market Telecinco Gross Advertising Revenues (mill ) % Special Initiatives (mill ) 14.3 % % % Record advertising revenues have been reached in 2005, with Special Initiatives growing at a high rate, making 14.3% of total revenues ADVERTISING 23

24 Innovative Commercial Strategy Audience SHARE SECONDS GRP s (20 ) C/GRP s (20 ) Telecinco Revenues % (%) (%) (%) (%) mill (%) 22.3% +0.9% -1.5% -0.1% +15.9% % Price increase is the main revenue driver, while ad volumes (seconds) are reduced Publiespaña consolidates its price leadership Source: TNS and Publiespaña ADVERTISING 24

25 Leadership in converting Audience into Advertising Revenues Audience h total individuals (%) GRPs 2005 (%) TV Advertising Revenues 2005 (%) Telecinco TVE1 La 2 Antena 3 FORTA Other Source: TNS 24 Hours, total individuals (4+ years total Spain), Infoadex, Publiespaña estimates for split between TVE1 and La 2 ADVERTISING 25

26 Maximising Advertising Revenues, by Sectors Sector Breakdown (% on total Adv sales) Sector Growth (2005 vs. 2004) Others Food Finance +35.5% Retail 5,6% 15,1% Automotive 24,0% 21,5% ,3% 10,5% 5,9% Non Food Telecoms Food Non Food Automotive Retail +65.1% +8.8% +6.1% +18.4% +24.3% Telecom Finance Other +9.2% Source: Publiespana ADVERTISING 26

27 Meeting our Strategic Commitments Leadership in advertising revenues: million (Infoadex) Leadership in advertising share: 31.4% Leadership in prices: Premium Price : +6.3% above average TV Leadership in power ratio: 1.41 ADVERTISING 27

28 G e s t e v i s i ó n T e l e c i n c o S. A. BROADCASTING FINANCIALS MASSIMO MUSOLINO General Manager Operations

29 Consolidated Financial Results, IFRS ( million) * Var. % Total Net Revenues % Total Costs ( ) ( ) 3.9 % Personnel (75.092) (70.857) 6.0 % Operating Costs ( ) ( ) 6.1 % Amortisation & Depreciation ( ) ( ) (0.6%) EBIT % Pre-tax Profit % NET PROFIT after Minorities % EBITDA (1) % (1) Post-rights amortisation EBITDA/NET REVENUES EBIT/NET REVENUES NET PROFIT/NET REVENUES 45.5 % 44.4 % 31.2 % 37.9 % 37.2 % 27.0 % * Combined format for FY2004 FINANCIALS 29

30 Obtaining Record Operating Margins EBITDA*/NET REVENUES (in %) Q 2Q 3Q 4Q FY Operating margins have increased in every quarter of 2005 * Post-rights amortisation FINANCIALS 30

31 Obtaining Record Operating Margins ( million) % ,4% % +3,9% Spanish GAAP Total Revenues 2004 EBIT/NET REVENUES 37.2% (vs. 27.2% in 2003) EBITDA*/NET REVENUES 37.9% (vs. 30.0% in 2003) IFRS Total Costs 2005 EBIT/NET REVENUES 44,4% EBITDA*/NET REVENUES 45,5% * Post-rights amortisation FINANCIALS 31

32 Consolidated Cash Flow Statement, IFRS ( million) * Diff. In million Initial Net Financial Position (8.18) Free Cash Flow Cash Flow from Operations Net Investments (163.49) (150.58) (12.91) Change in Net Working Capital 6.36 (10.04) Change in Equity (24.63) (0.19) (24.44) Financial Investments 0.37 (0.23) 0.60 Dividends received Dividend payments (172.64) (250.00) Total Net Cash Flow (8.18) Final Net Financial Position Free Cash Flow/Total Net Revenues 33.0% 30.4% * Combined format for 2004 FINANCIALS 32

33 Creating Shareholders Value Strong Cash Generation Acc * ( million) 350 FCF 1,020 ( million) Net Profit Ordinary Dividend Optimised business model which converts Net Profit into FCF High FCF growth combined with high dividend yield Immediate Shareholder Return * Spanish GAAP for and 2005 IFRS FINANCIALS 33

34 Creating Shareholders Value PAY-OUT DIVIDEND YIELD 06 DIVIDEND ON 2005 NET PROFIT 100 % 5.8 % (1) 05 DIVIDEND ON 2004 NET PROFIT 80 % 4.2 % (2) COMMITMENT IPO PROSPECTUS 50 % 5.8 % (1) Based on stock price at March 1st 2006 (2) Based on stock price at March 1st 2005 Increasing Pay-Out to guarantee an excellent Dividend Yield * Post-rights amortisation FINANCIALS 34

35 Net Investments million million TV Rights non-fiction TV Rights Fiction Co-production Distribution Tangible & Intangible Fixed Assets FINANCIALS 35

36 TELECINCO Back up Slides 1. Consolidated Financial Statements FINANCIALS 36

37 Consolidated Profit & Loss Account (I) ( million) IFRS FY05 FY04* %05/04 Gross Adv. Revenues -Telecinco -Other Discounts Net Advertising Revenues Other revenues (39.034) (48.332) % 15.8% 0.6% (19.2%) 18.0% 9.4% TOTAL NET REVENUES % Personnel Rights Amortisation Other Operating Costs (75.092) ( ) ( ) (70.857) ( ) ( ) 6.0% (3.4%) 6.1% EBITDA adj ** % * Combined format for FY2004, ** Post-rights amortisation FINANCIALS 37

38 Consolidated Profit & Loss Account (II) IFRS ( million) * %05/04 EBITDA adj** % Other Amortisation & Depreciation (10.003) (5.595) 78.8% EBIT % Equity Consolidated Results (186) Financial Results % EBT % Income Taxes ( ) (87.539) 49.7% Minority Interests (65) Net Profit % * Combined format for 2004, ** Post-rights amortisation FINANCIALS 38

39 Consolidated Balance Sheet, IFRS ( ml.) Tangible assets Audiovisual Rights and Pre-payments Third Party Rights - Fiction TV Rights - Co-production / distribution Pre-paid taxes TOTAL NON-CURRENT ASSETS Current assets Financial investments and cash TOTAL CURRENT ASSETS TOTAL ASSETS Shareholders equity Non-current Provisions Non-current payables Non-current financial liabilities TOTAL NON-CURRENT LIABILITIES Current Payables Current financial liabilities TOTAL CURRENT LIABILITIES TOTAL LIABILITIES FINANCIALS 39

40 Revenue Breakdown IFRS ( million) FY05 FY04* %05/04 Gross TV Adv. Revenues % Commisions and Discounts (39.034) (48.332) (19.2%) Net TV Advertising Revenues % Other revenues % TOTAL NET REVENUES % * Combined format for 2004 FINANCIALS 40

41 TELECINCO Back up Slides 2. Audience Share BROADCASTING 41

42 Spanish TV Audience Share 24 Hours, All Individuals 24,9 24,5 24,8 24,7 22,8 21,1 22,3 21,5 21,0 20,4 20,2 20,2 23,4 21,4 19,5 22,1 21,4 20,8 22,3 21,3 19,6 22,3 21,2 19,5 18,2 21,5 20,8 19,1 16,4 16,9 17,0 17,7 18,2 17,4 17,3 16, Jan-Feb 2005 Jan-Feb 2006 Telecinco is undisputed leader, outperforming A3TV and TVE1 Source: Sofres, 24 hours, Individuals (4+ years) BROADCASTING 42

43 Spanish TV Audience Share 24 Hours, Commercial Target 23,5 23,2 20,3 25,0 23,9 23,0 22,1 19,7 19,9 25,3 24,3 23,4 21,3 21,4 21,2 20,5 19,8 24,7 22,2 24,5 21,7 22,9 22,1 18,2 15,9 15,8 15,1 15,8 16,5 15,0 16,3 14,9 16,8 15,9 15,4 14, Jan-Feb 2005 Jan-Feb 2006 In commercial target Telecinco maintains a wide gap with competitors Source: Sofres, 24 hours, Commercial target (13-54 years) BROADCASTING 43

44 Spanish TV Audience Prime Time (21:00), All Individuals 26,4 23,3 22,1 24,3 24,4 22,4 21,9 20,8 19,8 20,9 18,1 18,1 18,2 23,9 22,3 20,6 18,6 18,6 18,3 17,6 23,1 23,5 21,4 21,8 21,2 17,4 19,5 17,2 23,4 22,3 19,4 17,9 21,6 20,9 18,6 16, Jan-Feb 2005 Jan-Feb 2006 In prime time, Telecinco continues strengthening its leadership Source: Sofres, Prime Time individuals (4+ years) BROADCASTING 44

45 Spanish TV Audience Prime Time (21:00), Commercial Target 25,1 26,1 24,8 24,3 25,8 26,6 26,2 25,7 21,5 19,4 17,5 19,8 21,4 16,8 19,8 20,7 16,1 19,0 15,8 22,9 21,8 20,4 19,1 18,0 16,9 15,8 22,7 16,4 15,3 22,9 17,0 16,1 23,5 22,2 15,1 14, Jan-Feb 2005 Jan-Feb 2006 Telecinco maintains its undisputed leadership, far ahead of competitors Source: Sofres, Prime time, Commercial Target (13-54 years) BROADCASTING 45

46 Spanish TV Audience Day Time, All Individuals 25,6 23,1 24,6 24,9 24,0 23,2 20,6 15,6 22,2 21,9 21,0 20,9 21,0 21,7 21,4 20,7 20,6 20,1 19,9 16,4 16,5 17,8 18,2 17,5 21,7 21,0 19,6 17,4 21,9 20,7 19,5 18,3 21,5 20,7 19,3 16, Jan-Feb 2005 Jan-Feb 2006 Telecinco maintain its performance in day time Source: Sofres, Prime time, Commercial Target (13-54 years) BROADCASTING 46

47 Spanish TV Audience Day Time, Commercial Target 23,9 22,7 20,7 24,5 23,5 23,7 22,7 19,7 19,9 23,0 22,7 19,7 23,7 21,5 24,7 21,2 24,0 22,0 24,0 21,2 22,7 22,1 15,1 15,4 14,7 15,4 18,8 16,0 18,3 15,0 16,3 16,7 15,8 15,5 13, Jan-Feb 2005 Jan-Feb 2006 Telecinco maintains its leadership in commercial target Source: Sofres, Prime time, Commercial Target (13-54 years) BROADCASTING 47

48 TELECINCO Back up Slides 3. Advertising Revenues ADVERTISING 48

49 Leadership in Advertising, Quarter by Quarter Gross Advertising Revenues Telecinco (mill ) % vs. 2Q % vs. 1Q % vs. 3Q % vs. 4Q Special IIEE Initiatives Q05 2Q05 3Q05 4Q05 High growth has been achieved quarter by quarter ADVERTISING 49

50 DISCLAIMER Statements contained in this document, particularly the ones regarding any Telecinco possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Telecinco 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 Telecinco shall not be taken as an indication of future performance. The content of this document is not, and shall not be considered as, an offer document or an offer or solicitation to buy or sell any stock. 50

51 G e s t e v i s i ó n T e l e c i n c o S. A. BROADCASTING March 2nd