Fedele Confalonieri Chairman

Transcription

1 1

2 Fedele Confalonieri Chairman 2

3 MEDIASET GROUP P&L Consolidated Results (Euro ml.) Net Consolidated Revenues 4, ,882.9 Operating Profit Net Profit Dividend per Share (Euro) Payout 94% 92% 3

4 MEDIASET ITALIAN BUSINESS P&L Results (Euro ml.) Net Consolidated Revenues 3, ,228.8 Operating Profit Net Profit

5 TELECINCO P&L Results (Euro ml.) Net Consolidated Revenues Operating Profit Net Profit

6 Pier Silvio Berlusconi Executive Vice Chairman 6

7 CHALLENGES FOR BROADCASTERS Traditional FTA Challenges 1. Few generalist channels 1. Audience fragmentation 2. Revenues mainly from advertising 3. Broadcasting (no content) 2. Advertising market maturity 3. Dependence on content providers 4. Linear offer only 5. Analogue transmission only 4. Technology enabling non-linear offers 5. Digital platforms multiplication 7

8 MEDIASET STRATEGIC REACTION Challenges Mediaset way to broadcasting 1. Audience fragmentation 1. Generalist + thematic channels 2. Advertising market maturity 2. Advertising + Pay TV revenues 3. Dependence on content providers 4. Technology enabling non-linear offers 5. Digital platforms development 3. Broadcasting + vertical integration in content 4. Linear + non linear offer ( On Demand ) 5. Presence on all digital platforms + analogue 8

9 GENERALIST FTA TV 9

10 AUDIENCE SHARE Evolution years, audience guarantee* C5+I1+R4 R1+R2+R3 Source: Auditel, 24h, (% audience share) *2006: Spring 29/1-3/6 excluding 26/2-4/3+Autumn 3/9-2/ : Spring 14/1-2/6 excluding 25/2-3/3+Autumn 9/9-1/ : Spring 13/1-31/5 excluding 24/2-1/3+Autumn 7/9-29/ : Spring 11/1-30/5 excluding 15/2-21/2+Autumn 6/9-5/ Spring 10/1-13/3 excluding 14-20/2 10

11 MULTICHANNEL FTA TV 11

12 2010 AUDIENCE Channel ranking (24 hours) Spring 2010*, 4-64 yrs Canale 5 Rai Uno Italia 1 Rai Due Rai Tre Rete 4 La7 Boing Rai 4 Premium Calcio k2 Iris RaiSat Premium Sky Sport 1 Disney Channel RaiSat Yoyo Fox Crime/HD RaiSat Cinema Rai Gulp Fox/HD Source: Auditel, 24h, (% audience share) *Spring 2010 (up to 6 March)

13 2010 AUDIENCE Switch-off impact in All Digital areas Spring 2010*, Individuals Spring 2010* Δ vs. 2009* Generalist (RAI+MS) 70.3% -8.7% Multichannel (RAI+MS) 13.1% +10.5% Total (RAI+MS) 83.4% +1.8% Satellite 8.4% -1.1% Other 8.2% -0.7% All Digital Areas: Sardegna, Piemonte, Lazio, Campania, Trentino Alto Adige, Valle D Aosta *Spring 2010 (up to 6 March) 13

14 FTA TV COSTS evolution and 2010 budget CAGR % 1.4% Guidance +1% 0% MEDIASET Initial Guidance MEDIASET Inflation MEDIASET -1.8% FTA TV Costs = Personnel costs+operating costs+tv rights amortisations+other D&A+intra-company items Source: Istat 14

15 PAY TV 15

16 MEDIASET PREMIUM Customer base growth 4,148,000 3,725,000 2,911,000-1,950, % 1 January 2009 July December March 2010 Source: company data 16

17 MEDIASET PREMIUM Commercial offer and revenues development Mio Euro 404 ml 561 ml +38.9% vs ml ARPU 60 ARPU 80 ARPU 94 Pay TV revenues +56.5% vs

18 Mediaset Italian business revenues evolution Total Revenues: 3,228.8 ml Euro Other Revenues 3% Other Revenues 29.5% ml Euro Publitalia Adv. market share Advertising Revenues 97% Advertising Revenues 70.5% % % * Source: AC Nielsen 18

19 SPAIN 19

20 SPAIN Market environment called for reaction Telecinco in Spain faced a difficult market situation, characterized by several factors: Launch of 2 new generalist FTA channels Unusual inventory exploitation for TVE Severe macroeconomic downturn We decided to react promptly in order to achieve the best deal available 1. Best fit between Telecinco and Cuatro (editorial + advertising) 2. Opportunity to replicate the Italian strategy (free + pay) 20

21 SPAIN Strategic rationale Reinforce the leadership in the Spanish FTA market 45.1% of TV advertising market 28.1% audience in the commercial target (24 hours) Development of significant revenues synergies Achieve relevant cost synergies Reinforce the multichannel strategy on DTT Benefit from the coming advertising market upturn, in a leading market position The right deal at the right time 21

22 MEDIASET WAY TO BROADCASTING Generalist FTA TV Generalista Multichannel NUOVI CANALI NUOVI CANALI Multichannel Contenuti Pay TV (*) Pay TV (*) minority stake of 22% Content Non linear TV Non linear TV Cuatro.com 22

23 Giuliano Adreani CEO 23

24 ITALY Economic Environment Var. % 2009 vs 2008 GDP Household consumption Corporate Investments Advertising Expenditure* * Excluding satellite TV in 2008 and Transit in 2009 Advertising 24

25 EUROPE Advertising market trend Var % 2009 vs % Italy -13.3% France -8.9% UK -20.9% Spain Advertising 25

26 ITALY The worst year for the advertising market Var % 2009 vs Q1 Q2 Q3 Q4-8.0% -21.2% -17.9% -15.2% Source: Nielsen; Market excluding Mediaset Advertising 26

27 ITALY Advertising market trend -8.4% Mediaset -15.6% -16.9% Total Market excluding Mediaset RAI -16.0% Newspapers -28.7% Magazines -7.7% Radio -25.4% Outdoor Internet +5.1% (of which Display -1.3%) Source: Nielsen Advertising 27

28 MEDIASET Advertising revenues -8.6% (Euro ml.) 2, , Advertising 28

29 MEDIASET Advertising revenues -8.0% (including Digitalia) (Euro ml.) 2, , Advertising 29

30 ITALY Publitalia outperforming the market Var % 2009 vs Q1 Q2 Q3 Q4-2.7% -21.2% -12.8% -17.9% -11.1% -15.2% -6.2% -8.0% Market excluding Mediaset Mediaset Source: Nielsen (excluding Direct Mail and Transit) Advertising 30

31 SECTOR ANALYSIS Food Var % 2009 vs % Mediaset -14.0% RAI -11.8% Newspapers -21.0% Magazines -5.5% Radio Source: Nielsen (excluding Direct Mail and Transit) Advertising 31

32 SECTOR ANALYSIS Automotive Var % 2009 vs % Mediaset -32.1% RAI -25.9% Newspapers -38.0% Magazines Source: Nielsen (excluding Direct Mail and Transit) Advertising 32

33 SECTOR ANALYSIS Finance and Insurance Var % 2009 vs % Mediaset -30.4% RAI -37.8% -28.6% Newspapers Magazines -19.7% Radio Source: Nielsen (excluding Direct Mail and Transit) Advertising 33

34 SECTOR ANALYSIS Telecom Var % 2009 vs Mediaset +2.3% -21.4% -14.0% RAI Newspapers -46.1% Magazines Radio +1.6% -27.4% Internet Source: Nielsen (excluding Direct Mail and Transit) Advertising 34

35 Why Mediaset outperformed the Market? - Focus on core business and top clients - Acquisition of new clients even in a difficult year - Ability to maintain the same level of prices 35

36 MEDIASET Focus on top clients* 2009 vs Top 10 clients -1.4% Top 20 clients -3.9% Clients > % (*) Holding clients 2008 client ranking Advertising 36

37 MEDIASET New business activity Active clients New clients Revenues from new clients 1, Euro ml. Advertising 37

38 MEDIASET Average revenues per advertising slot Var % 2009 vs Mediaset Rai Newspapers Magazines Radio -2.2% -9.7% -13.8% -8.8% -9.0% Source: Nielsen Advertising 38

39 First hints on

40 ITALY Advertising market trend January 2010 vs January 2009 Mediaset +3.3% Total Market excluding Mediaset +1.1% RAI Newspapers +0.3% +0.6% -17.7% Magazines Radio +6.9% Outdoor +14.4% Internet +4.7% Source: Nielsen (excluding Direct Mail, Transit and Out of Home) Advertising 40

41 Marco Giordani CFO 41

42 MEDIASET GROUP P&L Consolidated Results (Euro ml.) NET CONSOLIDATED REVENUES Italy Spain 4, , , , EBIT Italy Spain NET PROFIT (Reported)* Adjusted NET PROFIT ** * Including the impact of discontinued operations (Medusa Cinema and Multicinema) ** Net profit adjusted in 2008 for the net impact of the amortization of intangibles related to the PPA of Endemol and the impact of the fiscal assets realignment (2008 Italian Budget Law); in 2009 for the impact of the amortization of intangibles related to the PPA of Endemol Financials 42

43 2009 RESULTS Italian Business 43

44 MEDIASET ITALIAN BUSINESS P&L Results (Euro ml.) Net Consolidated Revenues Personnel Costs Other Operating Costs EBITDA Rights Amortisation Other Amortisation & Depreciation Operating Profit Financial Income (Losses) Associates Pre-Tax Profit Taxes Tax rate NET PROFIT , ,228.8 (418.7) (426.7) (1,234.9) (1,311.9) 1, ,490.2 (803.7) (865.3) (164.7) (146.2) (77.0) (32.0) (33.3) (1.2) (108.9) (166.7) 22.4% 37.4% % Var +0.3% (4.8%) (19.8%) (8.4%) (28.9%) Financials 44

45 MEDIASET ITALIAN BUSINESS Operations Breakdown (Euro ml.) Total Net Revenues Total Costs (including D&A) Operating Profit FTA TV 2,350.9 (1,835.1) Network Operator (196.3) 22.7 Pay TV (631.5) (70.8) Other Activities (372.2) 52.4 Intra-company Eliminations (135.4) Adjustments (191.0) (41.4) TOTAL 3, , Financials 45

46 MEDIASET ITALIAN BUSINESS FTA TV (Euro ml.) Total Net TV Revenues TV Advertising Revenues Multichannel Adv. Revenues Commissions Other TV Revenues Net Intra-company Items Total TV Costs Personnel TV Operating Costs TV Rights Amortisations Other D&A Net Intra-company Items FTA TV Operating Profit margin , , (429.2) (1,868.1) (350.8) (785.3) (588.8) (77.5) (65.7) % , , (392.2) (1,835.1) (352.4) (735.9) (598.2) (67.3) (81.2) % Financials 46

47 MEDIASET ITALIAN BUSINESS Network Operator (Euro ml.) Total Net Revenues 3 Party Revenues Other Revenues Net intra-company Items Total Costs Personnel Other Operating Costs Other Amortisation & Depreciation Network Operator Operating Profit margin (180.1) (34.8) (94.2) (51.1) % (196.3) (35.9) (102.2) (58.3) % Financials 47

48 MEDIASET ITALIAN BUSINESS Pay TV (Euro ml.) Total Net Pay TV Revenues Pay TV Revenues Advertising Revenues Other Revenues Commissions Total Pay TV Costs Personnel Other Operating Costs Rights Amortisations and Other D&A Net intra-company items Pay TV Operating Profit (1.5) (464.6) (8.8) (196.7) (217.3) (41.7) (60.9) (4.2) (631.5) (14.6) (302.6) (267.0) (47.3) (70.8) Financials 48

49 MEDIASET ITALIAN BUSINESS Other Activities (Euro ml.) Total Net Revenues Medusa/Taodue 3 Party revenues Medusa/Taodue intra-company revenues Multimedia Mediashopping Other Non-TV Revenues Net Intra-company Items Total Costs Personnel Other Operating Cost Right Amortisations Other Amortisations & Depreciations Intra-company Items Other Activities Operating Profit margin (355.6) (24.4) (199.3) (96.1) (27.7) (8.1) % (372.2) (24.0) (212.3) (120.9) (8.1) (6.9) % Financials 49

50 MEDIASET ITALIAN BUSINESS Investments (Euro ml.) * TV rights and cinema 530.9** Pay TV rights DTT Technical & immaterial Option rights Total ,145.1 Investments * Including 86.9 ml. Medusa TV Rights investment ** Including ml. Medusa TV Rights investment Financials 50

51 MEDIASET ITALIAN BUSINESS Cash Flow Statement (Euro ml.) Net Financial Position (01/01) Free Cash Flow from Core Activities - Cash Flow from Operations - Investments - Disinvestments - Change in Net Working Capital (CNWC) Equity (Investments)/Disinvest. Free Cash Flow Change in consolidation area Change in equity (incl. Buyback Program) Cashed-in Dividends Dividends Total Net Cash Flow Net Financial Position (31/12) GROUP Net Financial Position (31/12) (1,222.0) ,356.4 (926.8) 3.4 (75,8) (16.7) (139.7) (488.7) (123.8) (1,345.8) (1,371.7) (1,345.8) ,321.7 (1,145.1) (14.1) (431.9) (50.2) (1,396.0) (1,552.0) Financials 51

52 MEDIASET Dividend and FCF (Euro ml.) 517,6 466,9 478,6489,3 488,8 488,8 471,8 448,8 431,8 416, ,9 271,3 247,4 219,8 T5 Dividend Cashed-in to partially fund T5 rights issue FCF from core activities Dividend Dividend Recurring FCF Financials 52

53 MEDIASET GROUP Dividend policy Net Profit (Euro ml.) Earnings per Share (Euro) Recurring FCF (Euro ml.) Dividends (Euro ml.) Dividend per Share (Euro) Dividend/Recurring FCF 96% 96% 102% 94% 104% 104% Pay-out Ratio 73% 82% 81% 97% 97% 94% ( 1 ) * % 92% * ( 1 ) Excluding 2009 Tele5 dividend cashed-in * To be approved by AGM, 20th/21st April 2010; treasury shares are not eligible to receive dividends Financials 53

54 MEDIASET GROUP Back up Slides 54

55 MEDIASET GROUP Consolidated Cash Flow (Euro ml.) Net Financial Position (01/01) Free Cash Flow - Cash Flow from Operations -Investments - Disinvestments - Change in Net Working Capital (CNWC) Change in equity (incl. Buyback Program) Equity (Investments)/Disinvest. Dividends (paid and received) Change in consolidation area Total Net Cash Flow Net Financial Position (31/12) 2008 (1,208.8) ,865.0 (1,122.6) 4.5 (74.7) (1.3) (53.6) (640.7) (139.5) (162.9) (1,371.7) 2009 (1,371.7) ,627.2 (1,319.4) (2.9) (28.0) (538.9) 26.7 (180.3) (1,552.0) Financials 55

56 MEDIASET GROUP Consolidated Balance Sheet (Euro ml.) Television Rights Goodwill and consolidation differences Other tangible and intangible assets Financial assets Net working capital & other assets/liabilities Net Invested Capital Group shareholders equity Minority interests Net assets Net financial position ,396, , (195.5) 4, , ,755.8 (1,371.7) , (210.7) 4, , ,538.3 (1,552.0) Financials 56

57 MEDIASET ITALIAN BUSINESS Balance Sheet (Euro ml.) Television Rights Goodwill and consolidation differences Other tangible and intangible assets Financial assets Net working capital & other assets/liabilities Net Invested Capital Group shareholders equity Minority interests Net assets Net financial position 2, (168.5) 3, , ,580.6 (1,345.8) 2, (242.6) 3, , ,533.0 (1,396.0) Financials 57

58 MEDIASET GROUP Net Profit Adjustment (Euro ml.) NET PROFIT (Reported) Edam Adjustments from Telecinco Telecinco Minorities (34.8) (31.3) Net Edam PPA Adjustment Net Edam Goodwill Adjustment Fiscal Assets realignment (53.5) - Adjusted NET PROFIT Financials 58

59 MEDIASET SPANISH BUSINESS Back up Slides 59

60 TELECINCO P&L Results (Euro ml.) Net Consolidated Revenues Personnel Costs Other Operating Costs EBITDA Amortisation & Depreciation EBIT Financial Income (Losses) Associates Pre-Tax Profit Taxes NET PROFIT Reported NET PROFIT Adjusted* (89.2) (317.0) (188.7) (3.4) (175.9) (23.1) (79.5) (284.9) (169.1) (123.1) * Excluding the net impact of the Impairment Test and amortization of the intangibles related to the PPA of Endemol Financials 60

61 TELECINCO Investments (Euro ml.) TV rights Co-production & Distribution Tangible & Intangible Fixed Assets Total Investments Financials 61

62 TELECINCO Cash Flow Statement (Euro ml.) Net Financial Position (01/01) Free Cash Flow - Cash Flow from Operations - Investments/Disinvestment - Change in Net Working Capital (CNWC) Change in Equity Equity (Investments)/Disinvest. Cashed in Dividends Dividends Change in consolidation area Total Net Cash Flow Net Financial Position (31/12) (194.7) 1.1 (1.3) (36.9) 1.6 (317.6) 0.2 (39.0) (25.8) (25.8) (169.9) (40.4) (2.9) (13.8) 1.8 (210.3) - (130.2) (156.0) Financials 62

63 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 Testo Unico della Finanza, that the accounting information contained in this document corresponds to that contained in the company s books. 63