2016 RESULTS. 28 February 2017

Transcription

1 2016 RESULTS 28 February

2 TA BLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN OUTLOOK FOR

3 EBI TDA I NCREASES DESPI TE FA LL I N A DVERTI SING Main financials, VOCENTO P&L Cumulative variation Advertising Comp. EBITDA 11.5 Comp. EBIT Comparable EBITDA (1) Comparable EBIT (1)(2) Advertising Note 1: not including personnel adjustment measures and one-offs. Note 2: not including divestments and impairments. 3

4 MARGIN PROTECTED DESPITE FA LL I N CI RCULA TION Margin on circulation revenues, Cumulative variation Revenues Margin Annual variation margin on circulation ABC & Regional Press Press circulatilon revenues ABC & Regional 4

5 PERFORMANCE OF DIGITAL A DVERTI STING REVENUES Contribution of digital advertising revenues 1 (%) % 13.2% 17.2% 22.1% 25.2% 27.6% 31.1% Note 1: including advertising and e-commerce revenues. 5

6 FA STER MIGRATION TO DIGITAL A T NA TI ONAL PRESS National vs local advertising 1 National advertising 1 : Print vs Digital 31.4% 50.1% CAGR m 168.9m 52.1% 52.1% CAGR National 2.0% Local 1.9% Total 1.9% 68.6% 49.9% Offline Online Local advertising 1 : Print vs Digital 11.0% 13.1% Offline -8.3% Online 19.1% Total 2.0% CAGR % 47.9% 89.0% 86.9% Offline 1.1% Online 8.1% Total 1.9% National total Local total Offline Online 6 Note 1: Gross advertising data Note 2: compound annual growth rate.

7 DIGITAL I S A STRA TEGIC PI LLA R Maximize advertising revenues E-commerce potential Roll out Premium models Consolidate Classifieds Explore new initiatives Facebook Instant Articles + new launches in 2017 Data management analytics and user understanding (Data) 7

8 STA BILISATION OF REGI ONAL PRESS MARGINS Annual performance of comparable EBITDA 1 at Regional 1, m Regionales brands Local printing plants Rest Total Regional Note 1: Not including personnel adjustment measures and one-offs. 8

9 A BC BA CK TO PROFI TABILITY Annual performance of comparable EBITDA 1 at ABC m ABC brand ABC printing plant Total ABC Note 1: Not including personnel adjustment measures and one-offs. 9

10 EBI TDA GROWTH THA NKS TO COST REDUCTI ONS Performance of comparable EBITDA, VOCENTO Variation 2016 vs 2011 except for comparable EBITDA( m) VOC brands increase comparable EBITDA by +6.6m Comp. EBITDA 2011 (1) Ad revenues (2) Margin on circulation Add-ons margin Comp. EBITDA Audiovisual (1) Personnel costs (1)(2) Margin at print plants Others (3) EBITDA comp 2016 (1) Note 1: Non including personnel adjustment measures and one-offs. Note 2: variation ex Audiovisual B2B and perimeter. Note 3: various expenses, and changes to the perimeter. 10

11 GENERA TION OF FREE CA SH FLOW A ND DELEVERA GI NG Performance of net financial debt and cash flow at VOCENTO m x NFD NFD/EBITDA Cumulative variation x 66.4 Ordinary cash x Non-ordinary cash Ordinary operating cashflow Non-ordinary operating cashflow NFD NFD/Comparable EBITDA (x) 11

12 TA BLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN OUTLOOK FOR

13 Advertising revenues down -2.2% Increase in comparable EBITDA +4.1% to 52.2m MAIN A CHIEVEMENTS I N 2016 PROFITABILITY ABC: comp. EBITDA increases in 2016 by +1.9m to 7.8m with positive comp. EBIT ( 2.7m) for second consecutive year Positive comparable net profit of 3.2m - Net capital gains from sale of ABC building of 16.3m, after sale in December for 35.0m - Accounting impact (non-cash) of change in Corporation Tax, of 79.5m after minority interest Net negative result -60.0m REVENUES Digital makes increased contribution, 31.1% of total advertising revenues Continued improvement in circulation margin ( m) despite fall in Revenues from circulation sales -5.8% Diversified customer base: 5.2% of total revenues from IBEX 35; 6.6% from public sector GENERACION DE CAJA Net financial debt/comparable EBITDA x ( x). NFD decreases to 66.4m Ordinary positive cash flow 21.4m 13

14 A DVERTISING MARKET UNDERPERFORMS VOC increases offline market share, with lower online growth 2016 Annual variation % 2.9% 14.0% 12.4% 2016 advertising weakened over the course of the year Annual variation % -2.2% -7.1% -6.6% Total Offline (1) Online (2) Market VOCENTO 3.2% 4.8% 5.0% 4.5% 0.3% 3.1% 2.2% 1.3% 2.9% -0.6% -7.1% 1T16 2T16 3T16 4T16 Market Vocento Market 2016E Note 1: source for market: i2p. Regional Press and ABC. Note 2: source for market: i2p. Local Portals,ABC.es and Classified. -2.8% 14

15 COSTS MEA SURES DELI VER EBI TDA GROWTH Performance of comparable EBITDA, VOCENTO Variation 2016 vs 2015 except for comparable EBITDA ( m) m Comp. EBITDA 2015 (1) Ad revenues (2) Margin on circulation Add-ons margin Comp. EBITDA Audiovisual (1) Personnel costs (1)(2) Margin at print plants Others (3) EBITDA comp 2016 (1) Note 1: excluding personnel adjustment measures and one-offs m and m. Note 2: variation ex. Audiovisual and printing plants. Note 3: commercial costs and others. 15

16 NET PROFI T I MPACTED BY TA X REFORM A ND SA LE OF A BC BUI LDING Extraordinary effects Simplified P&L 2016 Royal Decree 3/2016. Negative impact (non-cash) of 83m in taxes ( 80m after minority interest): Limits to compensation for negative tax bases Limits to deductions for double taxation Reversal of impairments of stakes deducted before 2013 IFRS (Data in m) Reported Without impact of tax reform -RDL 3/2016- and sale of the ABC building Comparable EBITDA Compensation payments EBITDA EBIT Sale of ABC building in Madrid for 35m in December year lease Pre-tax capital gains 22m (net 16m) EBT Corporation tax Tax before minority interest Minority interest Result attributable to parent company Note 1: excluding personnel adjustment measures m 16

17 REDUCTI ON OF NET FI NA NCIAL DEBT< 1.3x EBI TDA Change to net financial debt at VOCENTO m Ordinary cash generated 21.4m NFD/comparable EBITDA 2.2x NFD/comparable EBITDA 1.3x NFD 2015 Comp. EBITDA(1) Working capital Capex Financ. & others (2) Comp.NFD 2016 Sale ABC building Compens. payments Others(3) NFD 2016 Note 1: excluding personnel adjustment measures and one-offs m. Note 2: including net financial expenses, dividends to minority interest and taxes. Note 3: including among others the purchase of 34% of Rotomadrid and payment related to Las Provincias. 17

18 TA BLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN OUTLOOK FOR

19 STRA TEGIC PRI NCIPLES A ND TA RGETS A T VOCENTO 2017 Areas for action Diversification of revenues Cost reductions Efficiency in cash flow New business lines Driving digital advertising Audience analytics (data) Optimization of traditional business structure (close c.12m): Efficiency Plan Investment via Opex in digital positioning Continued control of capex Monitoring working capital Targets INCREASED DIGITAL contribution to advertising revenues IMPROVEMENT IN comparable EBITDA GENERATION of ordinary cash 19

20 BUSI NESS A PPENDIX 20

21 EXTENDING OUR LEA DERSHIP Share of ordinary circulation 2011 Share of ordinary circulation 2016 % % 21.6% 26.2% 24.8% 26.6% 3.6% 5.5% 6.8% 15.8% 4.1% 5.3% 13.7% 10.2% 10.3% 7.1% 7.2% 11.3% Source: OJD 21

22 A BC CONSOLI DATES #2 POSI TION I N MADRID ABC ordinary circulation market share in Comunidad de Madrid % 36.8% 36.5% 36.4% 36.8% 36.4% 35.6% Closes gap vs El País to 11,236 copies 27.3% 27.1% 26.6% 21.9% 23.1% 23.3% 24.7% 24.6% 25.6% 26.5% 23.4% 22.5% +4.6 p.p. market share since % 13.3% 13.7% 14.0% 14.6% 15.4% Source: OJD 22

23 MAINTAINING PROFI TABILITY OF REGI ONAL PRESS Comparable EBITDA performance of regional press Variation 2016 vs 2015 except comparable EBITDA( m) and comparable EBITDA margin (%) Comp. EBITDA (1)2015 Advertising (2) Circulation margin Add-on margin Others (3) Comp. EBITDA (1) % EBITDA 1 margin 14.1% Note 1: excluding personnel adjustment measures and one-offs m and m. Note 2: offline and online. Note 3: including, margin of printing plants,sell of advertising and others fixed costs. 23

24 A BC STRENGTHENS POSI TION I N MADRID A ND ONLI NE Ordinary circulation in Madrid Share (%) Total online readership Million unique users December % 22.5% 26.5% 35.6% December % -12% -2% Exclusive mobile readership % 23.4% 25.6% 36.4% Million unique users December LA RAZÓN EL MUNDO ABC EL PAÍS 21% -6% 15% December ABC.ES Sites EL Pais Sites Elmundo.es Sites Source: OJD Source: comscore 24

25 A BC: I NCREASE I N EBI TDA A ND PROFI TABILITY Comparable EBITDA performance of ABC Variation 2016 vs 2015 except comparable EBITDA ( m) Positive comparable EBIT ( 2.7m) for 2nd consecutive year +1.9m Comp. EBITDA (1) 2015 Advertising Circulation margin Add-on margin Others (2) Comp. EBITDA (1) 2016 Note 1: excluding personnel adjustment measures and one-offs m and m. Note 2: print and digital. Note 3: including, margin of printing plant,sell of advertising and others fixed costs 25

26 A UDIOVISUA L: STA BLE PROFI TABILITY Comparable EBITDA performance at Audiovisual Variation 2016 vs 2015 except comparable EBITDA ( m) Comp. EBITDA 2015 DTT Radio Content Comp. EBITDA

27 GROWTH AT CLA SSI FIEDS Advertising performance Comparable EBITDA Advertising revenues ( m) and variation (%) m +16.2% m Note 1: excluding personnel adjustment measures m and m 27

28 FI NANCIAL A PPENDIX 28

29 CONSOLI DATED P&L IFRS (Data in m) Var% 2016 comp Var% Total revenue % % Operating Expenses ex non recurring costs % % Comparable EBITDA % % Personnel adjustment measures and one-offs % % EBITDA % % Impairment/gains on disposal of tan. & intan. assets n.r % EBIT % % Net financial income % % Profit before taxes % % Corporation tax n.r % Net profit attibutable to the parent n.r % Note 1: excluding personnel adjustment measures and one-offs m and m 29

30 CONSOLI DATED BA LA NCE SHEET IFRS (Data in m) Non Current Assets Current Assets Assets held for sale TOTAL ASSETS EQUITY TOTAL LIABILITIES Financial debt Non current liabilities Other non-current payables TOTAL EQUITY AND LIABILITIES Net financial debt

31 VA RIATION I N NET FI NA NCIAL DEBT 2016 IFRS (Data in m) Comparable EBITDA Variation in working capital Capex Other items Cash flow from operating activities Interests and dividends received Interests and dividends paid Total ordinary cash flow Payments for personnel adjustment measures Other non-recurring items with an impact on cash flow Change to NFD Net Financial Debt Note 1: including capital gains tax, withholding tax and others. Note 2: dividends to subsidiaries with minority interest and interest payments. Note 3: including among others sale of ABC building, second stage of purchase of 34% stake in Rotomadrid and exercise of put option at Las Provincias. 31

32 REVENUES BY BUSI NESS A REA Newspapers m Audiovisual m Classified m Total Total Total 47.4 Total 48.6 Total 15.4 Total Regional ABC TDT Radio Content Eliminations Classified Supp.Magazines Eliminations 32

33 COMPARABLE EBI TDA 1 BY BUSI NESS A REA Newspapers Audiovisual Classified m m m Total 46.6 Total 47.0 Total 12.6 Total 12.7 Total 0.8 Total Regional ABC Supp. and Magazines TDT Radio Content Classified Note 1: excluding personnel adjustment measures, Newspapers m and m, Classified m and m 33

34 A LTERNATIVE PERFORMANCE MEA SURES (A PMs) The definitions and calculation of Alternative Performance Measures (APM) have not changed since the publication of 9M16 results. The Report includes the definition and calculation methods for the APMs for the full year reporting period. 34

35 This document contains forward-looking statements regarding intention, expectations or estimates of the Company or its management at the date of issue thereof, relating to various aspects, including the growth of various lines of business and the business overall, the market share, the results of the Company and other aspects of the activity and status thereof. Analysts and investors should bear in mind that such estimates do not amount to any warranty as to the future behaviour or results of the Company, and they shall bear all risks and uncertainties with regard to relevant aspects, and thus, the real future results and behaviour of the Company might be substantially different from what is stated in the said predictions or estimates. The statements in this statement should be taken into account by any persons or entities who may have to make decisions or prepare or disseminate opinions on securities issued by the Company and, in particular, by the analysts who handle this document. All are invited to consult DISCLAIMER the documentation and information published or registered by the Company before the National Securities Market Commission. The financial information contained in this document has been prepared under International Financial Reporting Standards (IFRS). This financial information is unaudited and, therefore, is subject to potential future modifications. This document is only provided for information purposes and does not constitute, nor may it be interpreted as, an offer to sell or exchange or acquire, or solicitation for offers to purchase or accept any kind of compromise. Certain numerical figures included in this document have been rounded. Therefore, discrepancies in tables and graphs between totals and the sums of the amounts listed may occur due to such rounding. Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanish-language version prevails 35

36 Relación con Inversores y Accionistas C/ Pintor Losada, Bilbao (Bizkaia) Tel.: ir@vocento.com 36