M e d i a s e t G r o u p 9 th November 2004 2004 9-Month Results
MEDIASET 2004 9M Whole Day Audience Trend 24H Individuals Jan- Sep Jan- Sep excluding EUROCUP OTHER SATELLITE OTHER TERRESTRIAL 43.3% 44.2% 2.3% 3.8% 6.3% 43.6% 44.1% 2.3% 3.9% 6.2% Source: Auditel, Individuals BROADCASTING 2
MEDIASET 2004 9M Channel Ranking PRIME TIME (20.30-22.30) Individuals 15-54 yrs 15-34 yrs RAI 1 25.5 CANALE 5 24.9 CANALE 5 26.6 CANALE 5 22.5 RAI 1 22.1 RAI 1 20.2 ITALIA 1 11.4 ITALIA 1 14.5 ITALIA 1 16.9 RAI 2 11.0 RAI 2 11.2 RAI 2 10.2 RAI 3 9.7 RAI 3 8.6 RAI 3 8.1 RETE 4 8.9 RETE 4 7.1 RETE 4 6.3 Source: Auditel BROADCASTING 3
MEDIASET 2004 9M Channel Ranking 24H Individuals 15-54 yrs 15-34 yrs RAI 1 23.0 CANALE 5 25.4 CANALE 5 27.5 CANALE 5 22.5 RAI 1 18.5 ITALIA 1 18.2 RAI 2 12.1 ITALIA 1 15.0 RAI 1 15.8 ITALIA 1 11.8 RAI 2 12.2 RAI 2 11.2 RAI 3 9.1 RAI 3 7.8 RAI 3 6.6 RETE 4 9.0 RETE 4 7.0 RETE 4 6.0 Source: Auditel BROADCASTING 4
MEDIASET 2004 9M Whole Day Audience Trend 24H Commercial target 15-54 yrs 48.4 47.4 46.1 First broadcaster in Italy 41.9 38.9 38.5 2002 9M 2003 9M 2004 9M Source: Auditel, BROADCASTING 5
M e d i a s e t G r o u p ADVERTISING
MEDIASET 2004 9M Advertising Revenues 1,790.6 1,830.8 +181.5 ml 2,012.3 ADV Revenues +9.9% Vs 9M 2003 2002 9M 2003 9M 2004 9M ADVERTISING 7
MEDIASET 2004 8M 4-YEAR Advertising Trend Jan- Aug 114 104 102 104 100 92 93 100 87 2000 8M 2001 8M 2002 8M 2003 8M 2004 8M Source: Nielsen Media Research Estimates ADVERTISING 8
MEDIASET 2004 9M Advertising by Sector 9M2004 (ml ) 2004 vs 2003 2003 vs 2002 FOOD 594-6.9% +8.7% NON FOOD 332 +5.3% -2.2% AUTOMOTIVE 223 +20.5% +7.7% FINANCE/INSURANCE 58 +44.9% -27.2% TELECOM 183 +26.1% +7.2% MEDIA & PUBLISHING 189 +37.1% +7.0% RETAIL 20 +71.3% -14.3% ADVERTISING 9
MEDIASET 2004 9M Breakdown by Sector 2003 9M 7.5% Media Publishing 17.2% 7.9% Non-Food Telecom 2.2% Finance 2004 9M 9.4% Media Publishing 16.5% 9.1% Non-Food Telecom 2.9% Finance 34.8% Food 10.1% Automotive 20.3% Other Sectors 29.5% Food 11.1% Automotive 21.5% Other Sectors ADVERTISING 10
MEDIASET 2004 9M New Clients Acquisition Policy Active Clients New Clients in 9M 2004 2002 881 New Clients 204 2003 920 Revenues 53.6 ml 2004 942 ADVERTISING 11
M e d i a s e t G r o u p
TELE5 9M 2004 Performance Highlights Broadcasting Undisputed Leadership in Commercial Target: - 27.2% in Prime Time, - 25.2% in 24Hours 1st Private Channel on Individuals - 23.2% in prime Time - 22.1% in 24 Hours Advertising Leadership in the Spanish TV Advertising Mkt 9M2004 Net TV Advertising Revenues growth: +28.4% Financials (*) 36% EBIT margin (23.8% 9M 2003) 200.8 ml Pre-tax Profit (102.6 ml 9M 2003): +95.7% Strong FCF generation: more than doubled to 205.4 ml (95.2 ml 9M2003) (*): Italian GAAP 13
M e d i a s e t G r o u p
MEDIASET GROUP Consolidated Results ( ml.) 2004 9M 2003 9M Net Consolidated Revenues Operating Costs EBITDA Amortisation & Depreciation EBIT pre Goodwill Amortisation Tele5 Goodwill Amortisation EBIT Pre-Tax Profit and Minorities 2,400.2 (1,012.0) 1,388.2 (643.7) 744.5 (34.7) 709.8 722.5 2,111.8 (886.7) 1,225.1 (707.0) 518.1 (32.4) 485.7 449.0 15
ITALIAN BUSINESS 16
MEDIASET ITALIAN BUSINESS P&L Results ( ml.) 2004 9M 2003 9M Net Consolidated Revenues Operating Costs EBITDA Rights Amortisation EBITDA Adj. Other Amortisation & Depreciation EBIT Pre-Tax Profit 1,853.6 (784.3) 1,069.3 (449.3) 620.0 (72.7) 547.3 556.4 1,686.6 (693.5) 993.1 (511.1) 482.0 (65.4) 416.6 378.8 17
MEDIASET ITALIAN BUSINESS Operations Breakdown ( ml.) Total Net Revenues EBIT EBIT margin TV Operations 1,783.1 578.4 32.4% Non TV Operations 58.7 5.7 9.7% DTT Operations 11.8 (36.8) n.a. 1,853.6 547.3 29.5% 18
MEDIASET ITALIAN BUSINESS TV Operations ( ml.) 2004 9M 2003 9M D % Total Net TV Revenues 1,783.1 1,627.0 +9.6% TV Advertising Revenues Other TV Revenues OW: Sale of Rights Commissions 2,012.4 69.7 7.4 (299.0) 1,830.8 67.5 30.8 (271.3) Total TV Costs (1,204.7) (1,210.5) - 0.5% Personnel TV Operating Costs TV Rights Amortisations Other Amortisation & Depreciation (229.7) (481.8) (437.5) (55.7) (224.2) (422.2) (507.0) (57.1) EBIT from TV Operations margin 578.4 32.4% 416.6 25.6% +38.9% 19
MEDIASET ITALIAN BUSINESS Non TV Operations ( ml.) 2004 9M 2003 9M Total Non TV Revenues Thematic Channels Teletext Internet Other Non-TV Revenues Total Non TV Costs Personnel Multimedia Operating Costs Non-TV Operating Cost Amortisations & Depreciations EBIT from Non TV Operations margin 58.7 22.9 4.3 10.5 21.0 (53.0) (8.3) (18.1) (17.1) (9.5) 5.7 9.7% 59.6 16.7 3.8 8.1 31.0 (54.6) (8.1) (16.2) (20.4) (9.9) 4.9 8.2% 20
MEDIASET ITALIAN BUSINESS DTT Operations ( ml.) 2004 9M 2003 9M Total DTT Revenues 11.8 - Total DTT Costs Personnel DTT Operating Costs Amortisations & Depreciations o/w: - Pay per View EBIT from DTT Operations (48.6) (5.7) (23.7) (19.2) (6.9) (36.8) (4.9) (0.7) (1.7) (2.6) - (4.9) 21
MEDIASET ITALIAN BUSINESS Cash Flow Statement ( ml.) 2004 9M 2003 9M Net Financial Position 1/1 Free Cash Flow - Cash Flow from Operations - Investments - Disinvestments - Change in Net Working Capital (CNWC) Equity (Investments)/Disinvest. Dividends Cashed-in Dividends from Tele5 Total Net Cash Flow Net Financial Position 30/9 (451.4) 652.0 1,214.3 (569.1) 1.2 5.6 (78.5) (271.3) 155.0 457.2 5.8 (170.8) 411.2 983.9 (445.7) 0.4 (127.4) (285.4) (247.4) 11.3 (110.3) (281.1) 22
MEDIASET ITALIAN BUSINESS Investments ( ml.) 569.1 ml. 445.7 ml. 139.6(*) 29.6 38.2 45.7 2004 9M 383.8 2003 9M 377.9 TV Rights DTT Technical & Immaterial (*): of which 116.7 ml related to PPV DTT 3-season Football Rights 23
GROUP NET FINANCIAL POSITION 24
MEDIASET GROUP Consolidated Net Financial Position 30/9/2003 31/12/2003 209.3 252.1 Consolidated Consolidated (71.8) (199.3) (281.1) 30/9/2004 (451.4) 207.5 213.3 5.8 Consolidated 25
MEDIASET GROUP Back up Slides 26
MEDIASET GROUP Consolidated Results ( ml.) 2004 9M Consolidated 2004 9M Mediaset 2004 9M Telecinco Consolidation Effects Net Consolidated Revenues 2,400.2 1,853.6 547.5 (0.9) Operating Costs (1,012.0) (784.3) (228.6) 0.9 EBITDA 1,388.2 1,069.3 318.9 0.0 Amortisation & Depreciation (643.7) (522.0) (121.7) 0.0 EBIT pre Goodwill Amortisation 744.5 547.3 197.2 - Tele5 Goodwill Amortisation (34.7) - - (34.7) EBIT 709.8 547.3 197.2 (34.7) Pre-Tax Profit 722.5 556.4 200.8 (34.7) 27
MEDIASET GROUP Consolidated Cash Flow ( ml.) 2004 9M 2003 9M Net Financial Position 1/1 Free Cash Flow - Cash Flow from Operations - Investments - Disinvestments - Change in Net Working Capital Change in Consolidation Area Equity (investments)/disinvest. Dividends (paid and received) Total Net Cash Flow Net Financial Position 30/9 (199.3) 857.4 1,414.4 (686.0) 1.9 127.1 - (78.5) (366.3) 412.6 213.3 (170.8) 506.4 1,191.6 (567.0) 1.0 (119.2) (133.7) * (9.4) (264.3) 99.0 (71.8) (*): including 142.3ml Tele5 1/1/2003 Net Financial Position 28
MEDIASET ITALIAN BUSINESS Back up Slides 29
MEDIASET ITALIAN BUSINESS Revenues Breakdown ( ml.) 2004 9M 2003 9M Total Net TV Revenues TV Advertising Revenues Other TV Revenues o/w: -Sales of Rights Commissions Total Net Multimedia Revenues Non TV Revenues DTT Revenues Total Net Revenues 1,783.1 2,012.4 69.7 7.4 (299.0) 37.7 21.0 11.8 1,853.6 1,627.0 1,830.8 67.5 30.8 (271.3) 28.6 31.0-1,686.6 30
MEDIASET ITALIAN BUSINESS Operating Costs Breakdown ( ml.) 2004 9M 2003 9M Personnel Costs TV Operating Costs Commercial Costs In-house Production Transmission Costs Overheads Multimedia Operating Costs Non TV Operating Costs DTT Operating Costs Total Operating Costs (243.7) (481.8) (66.8) (347.6) (20.1) (47.3) (18.1) (17.1) (23.7) (540.6) (233.0) (422.2) (60.2) (294.1) (23.9) (44.0) (16.2) (20.4) (1.7) (460.5) 31
MEDIASET ITALIAN BUSINESS Non Operating Items ( ml.) 2004 9M 2003 9M Total Associates ALBACOM (19.5% stake) Others Net Financial Income/(Charges) TRS Income Other Financial Income/(Charges) Total Extraordinary Items (13.6) (12.7) (0.9) 25.0 35.0 (10.0) (2.3) (21.4) (20.1) (1.3) (5.7) - (5.7) (10.7) 32
MEDIASET SPANISH BUSINESS Back up Slides 33
TELECINCO P&L Results ( ml.) ITALIAN GAAP 2004 9M 2003 9M Total Net Revenues Total TV Costs Personnel Other Operating Costs TV Rights Amortisation EBITDA Adj. Other Amortisation & Depreciation EBIT Non Operating Items Pre-tax Profit 547.5 (339.6) (50.9) (177.7) (111.0) 207.9 (10.7) 197.2 3.6 200.8 425.4 (312.0) (47.5) (145.9) (118.6) 113.4 (11.9) 101.5 1.1 102.6 34
TELECINCO TV Revenues Breakdown ( ml.) ITALIAN GAAP 2004 9M 2003 9M Net TV Advertising Revenues Gross TV Advertising Revenues Agency Commissions Other Net Revenues Total Net Revenues 494.2 528.0 (33.8) 53.3 547.5 384.7 419.0 (34.3) 40.7 425.4 35
TELECINCO TV Operating Costs Breakdown ( ml.) ITALIAN GAAP 2004 9M 2003 9M Personnel Costs Other Operating Costs Commercial Costs In-house Production Transmission Costs Overheads Total Operating Costs (50.9) (177.7) (4.0) (121.4) (13.0) (39.3) (228.6) (47.5) (145.9) (5.2) (101.7) (13.3) (25.7) (193.4) 36
TELECINCO Non Operating Items ( ml.) ITALIAN GAAP 2004 9M 2003 9M Total Associates 0.4 (1.9) Net Financial Income/(Charges) 3.3 4.3 Total Extraordinary Items (0.1) (1.3) 37
TELECINCO Cash Flow Statement ( ml.) ITALIAN GAAP 2004 9M 2003 9M Net Financial Position 1/1 Free Cash Flow Cash Flow from Operations Investments Disinvestments Change in Net Working Capital (CNWC) Equity (Investments)/Disinvest. Dividends Total Net Cash Flow Net Financial Position 30/9 252.1 205.4 330.1 (116.9) 0.7 (8.5) - (250.0) (44.6) 207.5 142.3 95.2 207.7 (121.3) 0.6 8.2 - (28.2) 67.0 209.3 38
TELECINCO Investments 116.9 ml. ITALIAN GAAP 121.3 ml. 3.0 6.4 2004 9M 113.9 2003 9M 114.9 TV Rights Tangible & Intangible Fixed Assets 39
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. 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. 40
M e d i a s e t G r o u p 9 th November 2004 2004 9-Month Results