Slide 1: Results for 9M18
RESULTS FOR 9M18 14 November 2018 1 Results 9M18
Slide 2: Main highlights of 9M18
MAIN HIGHLIGHTS OF 9M18 REVENUES • Advertising revenues 9M18 -2.9%; reflection of a weak advertising market(-0.4%) and base effect in 9M17 derived from the XV Anniversary • Resilience of local offline advertising at VOCENTO +0.2% • Growth in online advertising, especially at local +19.4% • Gradual i
Slide 3: Agreement with PRISA for programmatic advertising
A G R E E M E N T WI T H P R I S A F O R P R O G R A M M A T I C A D V E R T I S I N G Description of the deal Weight of digital advertising in total1 56% 51% • VOC and PRISA agree to create a platform 47% 41% 43% providing coordinated programmatic advertising 37% 35% 39% 30% 26% • Project open to o
Slide 4: A stagnant advertising market
A STAGNANT ADVERTISING MARKET 3.4% 3.0% VOC 9M18 ex XV Anniversary -1.3% 0.0% -0.0% -0.4% -1.5% -2.0% -2.9% 9M14 9M16 9M17 9M18 Vocento Total market1 Household consumption2 +1.7% +2.6% +4.3% +4.1% Euro & Olympic World Cup World Cup Games 4 Note 1: market source i2p excluding social media. Note 2: so
Slide 5: Local outperforms national advertising
L O C A L O UT P E R F O R M S N A T I O N A L A D V E R T I S I N G VOCENTO brands maintain market share offline YoY variation % 11.0% 6.5%3 -0.4% -2.9% -6.6% -6.7%2 Total market Offline Online Market1 VOCENTO Local advertising stable at VOCENTO Composition of advertising revenues4 % and €m Local €
Slide 6: Regional: EBITDA impacted by national advertising
R E G I O N A L : E B I T D A I M P A C T E D B Y N A T I O N A L A D V E R TI S I N G Comparable EBITDA at Regional Variation 9M17 vs 9M18 except comparable EBITDA €m and comparable EBITDA margin % EBITDA margin1 14.2% 13.4% 24.0 1.3 -3.5 -1.2 1.7 22.2 9M171 Local National Margin on Personnel 9M181
Slide 7: ABC improves profitability
ABC IMPROVES PROFITABILITY Comparable EBITDA of ABC Variation 9M17 vs 9M18 except comparable EBITDA €m and comparable EBITDA margin % EBITDA margin1 1.7% 2.0% 1.0 1.3 1.2 -1.0 0.1 9M171 Advertising2 Margin on Personnel 9M181 circulation costs1 and others3 7 Note 1: excluding adjustment measures 9M17
Slide 8: Gradual change in weight of the businesses
G R A D UA L C H A N G E I N WE I G H T O F T H E B US I N E S S E S Performance of comparable EBITDA by business 50.2 47.8 0.8 0.9 37.0 3.0 3.5 12.6 13.0 5.2 85% of 46.6 41.9 40.9 78% 72% total1 -0.4 -1.3 -11.4 -10.6 -9.9 -10.6 -11.4 Digital weight2 / 2013 2015 LTM newspaper advertising 17.0% 21.5%
Slide 9: Impact of fall in advertising on EBITDA
IMPACT OF FALL IN ADVERTISING ON EBITDA Comparable EBITDA, VOCENTO Variation 9M17 vs 9M18 except comparable EBITDA €m Other New Press on + off : €-2.3m businesses businesses €0.2m €0.5m 26.8 -4.6 3.5 -4.4 0.7 0.5 -0.3 24.9 1.2 -0.5 1.5 0.6 v v v Comp. Circ. Circulation Press Sales costs Savings Prin
Slide 10: Ordinary cash generation reduces leverage
O R D I N A R Y C A S H G E N E R A T I O N R E D UC E S L E V E R A G E Performance of net financial debt of VOCENTO €m Ordinary cash generation €24.8m1 NFD/Comparable NFD/Comparable LTM EBITDA 1.1x EBITDA 0.8x 56.2 24.9 5.4 1.1 37.9 14.4 7.0 31.4 7.5 Working Financials NFD Comp. EBITDA Capex Comp.
Slide 11: Consolidated P&L
CONSOLIDATED P&L IFRS €m 9M17 9M18 Var% 9M17 (IFRS15) Operating revenues 277.5 287.8 -3.6% 309.2 Comparable operating expenses ex. depreciation1 -252.6 -261.0 3.2% -282.5 Comparable EBITDA1 24.9 26.8 -6.9% 26.8 Personnel adjustment measures and one-offs -5.3 -10.4 48.7% -10.4 EBITDA 19.6 16.4 19.8%
Slide 12: Appendices
APPENDICES 12 Results 9M18
Slide 13: ABC strengthens position in Madrid and online
ABC STRENGTHENS POSITION IN MADRID AND ONLINE Share of ordinary circulation in Madrid Total online readership Share % Million unique monthly users 16.1 19.6 19.6 9M18 16.9% 9.8% 17.5% 14.5% 22.8% 27.6% 35.2% 9M17 9M18 13.8 17.8 16.7 9M17 Exclusively mobile readers Million unique monthly users 14.8%
Slide 14: Audiovisual: decrease due to content
A UD I O V I S UA L : D E C R E A S E D UE T O C O N T E N T Comparable EBITDA1 at Audiovisual €m Ex-Content production Down -3.0% -5.2% • Content business production now equity-accounted 9.5 9.0 Content • Lower profitability of film 3.5 2.6 Radio distribution 1.9 1.9 DTT Radio and DTT maintain • pr
Slide 15: Advertising growth at Classifieds
A D V E R T I S I N G G R O WT H A T C L A S S I F I E D S Advertising performance Performance of comparable EBITDA €m €m Significant growth at Autocasión +8.1% (auto sector) 13.7 12.7 +44.1% 2.1 1.5 9M17 9M18 9M17 9M18 15 Results 9M18
Slide 16: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET IFRS 9M18 2017 €m Non-current assets 321.2 330.9 Current assets 111.9 136.3 Assets held for sale 0.4 0.5 Total assets 433.5 467.7 Equity 248.7 252.0 Financial debt 60.2 79.6 Other non-current liabilities 32.0 38.9 Other current liabilities 92.5 97.2 Total liabilities + equ
Slide 17: Variation in net financial debt 9M18
VARIATION IN NET FINANCIAL DEBT 9M18 IFRS 9M18 9M17 €m Comparable EBITDA1 24.9 26.8 Variation in working capital 14.4 -0.2 Capex -7.5 -6.0 Other items 1.9 5.0 Cash flow from recurring activities 33.7 25.6 Dividends and interest received 0.3 0.3 Dividends and interest paid3 -9.2 -8.4 Total ordinary c
Slide 18: Revenues by business
R E V E N UE S B Y B US I N E S S Newspapers (€m) Audiovisual (€m) 242.4 234.0 34.5 27.1 18.7 17.3 11.7 Sup. & Mag. 3.2 Content 68.9 64.7 2.5 ABC 3.0 Radio 168.9 165.0 Regional 19.9 21.6 DTT Elimin. Elimin. -14.1 -13.1 -0.2 -0.2 9M17 9M18 9M17 9M18 Classifieds (€m) Gastronomy and others (€m) 13.6 14
Slide 19: Comparable EBITDA by business
C O M P A R A B L E E B I T D A 1 B Y B US I N E S S Newspapers (€m) Audiovisual (€m) 24.3 22.0 9.5 9.0 1.2 1.3 3.5 2.6 Sup. & Mag. Content 24.0 22.2 1.9 1.9 ABC Radio 4.1 4.5 Regional DTT -0.9 -1.4 9M17 9M18 9M17 9M18 Classifieds (€m) Gastronomy and Others (€m) 1.5 2.1 0 0.5 1.5 2.1 0.8 Others Clas
Slide 20: Alternative Performance Measures (APMs)
A L T E R N A T I V E P E R F O M A N C E M E A S UR E S ( A P M s ) The definitions and calculation of Alternative Performance Measures (APM) have not changed since the publication of the results for 1H 2018. The 9M18 results report includes, as well as the definitions and calculation methods for t
Slide 21: Disclaimer
DISCLAIMER This document contains forward-looking Company and, in particular, by the analysts who statements regarding intention, expectations or handle this document. All are invited to consult estimates of the Company or its management at the documentation and information published or the date of
Slide 22: Investor and shareholder relations
Relación con Inversores y Accionistas C/ Pintor Losada, 7. 48007 Bilbao (Bizkaia) Tel.: 902 404 073 | e-mail: ir@vocento.com 22 Results 9M18