Gma Network, Inc. · PSE:GMA7

Gma Network — Q3 2014 Earnings Presentation

24 slides from Gma Network's earnings presentation, Nov 14, 2014

1. Slide 1: GMA Network, Inc. 3rd Quarter 2014 Results

   GMA NETWORK, INC. 34 Quarter 2014 Results November 14, 2014

2. Slide 2: 3rd Quarter 2014 Audience Shares

   Audience Shares 3rd Quarter 2014 Audience Shares 38.8 37.8 34.2 34.1 30.0 27.7 9.8 9.2 9.9 Mega.Manila Urban.Luzon NUTAM GMA ABS TV5 Based on Total Day (6am -12mn) - Households in TV Homes Effective January 2014, Mega Manila and Urban Luzon account for Source: Nielsen Phils TAM (Arianna) 60% and 77%

3. Slide 3: Ratings Update - Radio

   RATINGS UPDATE - Radio #1 AM Radio station in Mega Manila #1 FM Radio station in Cebu and Iloilo #2 AM Radio station in Cebu #2 FM Radio station in Bacolod and Dagupan #3 FM Radio station in Mega Manila SOURCE: Nielsen Media RAM Period covering (Sept 24-30 for Manila, Aug 23-29 for Cebu, Aug 29-Sept

4. Slide 4: Building a Global Brand ... International Pay TV Channels

   Building a Global Brand ... International Pay TV Channels 5%YoY 90%YoY Almost 274 thousand subscriptions as of Over 19 thousand subscriptions as of September 2014 September 2014 9%YoY 25%YoY Over 89 thousand subscriptions as of Almost 38 thousand subscriptions as September 2014 of September 2014

5. Slide 5: Building a Global Brand ... Gold Record Award

   Building a Global Brand ... Gold Record Award (combined physical and digital sales – over 11,000 units) Release date: June 1, 2014 Sales as of September 30, 2014

6. Slide 6: Building a Global Brand ... Program Syndication and Licensing

   Building a Global Brand ... Program Syndication and Licensing Cambodia Sold Free TV Rights of Akin Pa Rin Ang Bukas Vietnam Sold Free and Basic Pay TV Rights of Bukod Kang Pinagpala, Indio, Hiram Na Puso, Prinsesa Ng Buhay Ko, Mga Basang Sisiw, Ang Kakambal Ni Eliana, Maghihintay Pa Rin, Dormitoryo

7. Slide 7: Building a Global Brand ... Awards and Recognition

   Building a Global Brand ... Awards and Recognition AWARDS: JULY Philippine Association for National Advertisers PANAta Marketing Effectiveness Awards GMPI won in the External Communications – Programs - Brand category for its Del Monte Kitchenomics Branded Content and Integrated Mobile App. The mobi

8. Slide 8: Consolidated Financial Report For the Nine Months Ended September 30, 2014

   Consolidated Financial Report For the Nine Months Ended September 30, 2014 GMA Network, Inc. November 14, 2014

9. Slide 9: Consolidated Net Revenues

   CONSOLIDATED NET REVENUES Comparative Quarterly Highlights (vs. previous quarter) (In Millions PhP) •Net revenues increased by 8% vs. Q2 ’14. 4,000 3,141 2,915 3,000 355 316 Airtime revenues +7% 2,000 Subscription and 2,786 2,598 1,000 others +12% Total 0 Revenues +8% Q3 '14 Q2 '14

10. Slide 10: Airtime Revenues

    AIRTIME REVENUES Comparative Quarterly Highlights (vs. previous quarter) (In Millions PhP) *Net airtime revenues up by 7%. Q3 ’14 Q2’14 Inc (Dec) TV Channel 7/RTV 2,584 2,420 7% Channel 11 (GNTV) 92 82 12% Radio 110 95 15% 2,786 2,598 7%

11. Slide 11: Subscription and Other Revenues

    SUBSCRIPTION AND OTHER REVENUES Comparative Quarterly Highlights (vs. previous quarter) (In Millions PhP) * Revenues from International operations, subsidiaries and others increased by 12% vs. previous quarter. Q3 ’14 Q2 ’14 Inc (Dec) International 264 270 (2%) Subsidiaries and others 90 46 95% Tota

12. Slide 12: Financial Highlights

    FINANCIAL HIGHLIGHTS Comparative Quarterly Highlights (vs. previous quarter) (In Millions PhP) EBITDA and Net Income increased by 31% and 66%, respectively, against Q2’14. 8,000 7,000 6,000 3,141 5,000 2,915 Revenues +8% 4,000 3,000 Expenses +2% 2,590 2,000 2,544 EBITDA +31% 1,000 972 743 Net Income

13. Slide 13: Consolidated Net Revenues

    CONSOLIDATED NET REVENUES For the Third Quarters Ended September 30, 2014 and 2013 (In Millions PhP) •Net revenues increased 4% vs. same quarter last year. 4,000 3,141 3,027 3,000 355 336 Airtime revenues +4% 2,000 Subscription and 2,786 2,691 1,000 others +6% Total 0 Revenues +4% Q3 '14 Q3 '13

14. Slide 14: Airtime Revenues

    AIRTIME REVENUES For the Third Quarters Ended September 30, 2014 and 2013 (In Millions PhP) * Net airtime revenues up by 4% Q3 ’14 Q3 ’13 Inc (Dec) TV Channel 7/RTV 2,584 2,528 2% Channel 11 (GNTV) 92 82 13% Radio 110 82 34% Total 2,786 2,691 4%

15. Slide 15: Subscription and Other Revenues

    SUBSCRIPTION AND OTHER REVENUES For the Third Quarters Ended September 30, 2014 and 2013 (In Millions PhP) Q3 ’14 Q3 ’13 Inc (Dec) International 264 254 4% Subsidiaries and others 90 82 10% Total 355 336 6% ** Subscriber count Q3 ’14 Q3 ’13 Inc (Dec) GPTV 273,883 261,167 5% GLTV 89,136 81,597 9% Ave

16. Slide 16: Financial Highlights

    FINANCIAL HIGHLIGHTS For the Third Quarters Ended September 30, 2014 and 2013 (In Millions PhP) EBITDA and Net Income climbed by 15% and 20%, respectively, vs. the same quarter last year. 8,000 7,000 6,000 3,141 5,000 3,027 Revenues +4% 4,000 3,000 Expenses +3% 2,590 2,516 2,000 EBITDA +15% 1,000 97

17. Slide 17: Consolidated Revenues

    CONSOLIDATED REVENUES For the Nine Months Ended September 30, 2014 and 2013 (In Millions PhP) •Net revenues declined by 9% vs. 9M 2013 inclusive of pol ads and by 1% after carving out election-related advertising revenues worth P724M in 2013 9,752 10,000 8,906 9,000 8,000 7,000 Airtime 6,000 revenue

18. Slide 18: Airtime Revenues

    AIRTIME REVENUES For the Nine Months Ended September 30, 2014 and 2013 (In Millions PhP) 9M ’14 9M ’13 Inc (Dec) TV Channel 7/RTV 7,411 8,346 (11%) Channel 11 (GNTV) 234 204 14% Radio 283 309 (8%) 7,927 8,859 (11%) Less: Non-recurring Pol Ads - 724 (100%) Total 7,927 8,135 (3%)

19. Slide 19: Subscription and Other Revenues

    SUBSCRIPTION AND OTHER REVENUES For the Nine Months Ended September 30, 2014 and 2013 (In Millions PhP) 9M ’14 9M ’13 Inc (Dec) International 792 725 9% Subsidiaries and others 187 168 12% Total 979 893 10% * Subscriber count 9M ’14 9M ’13 Inc (Dec) GPTV 273,883 261,167 5% GLTV 89,136 81,597 9% Aver

20. Slide 20: Consolidated Operating Expenses

    CONSOLIDATED OPERATING EXPENSES For the Nine Months Ended September 30, 2014 and 2013 (In Millions PhP) •Total OPEX dropped by 1% year-on-year. 7,497 7,601 8,000 7,000 6,000 3,344 3,463 5,000 4,000 GAEX 4% 3,000 4,257 Prod costs -5% 2,000 4,034 54% 56% 1,000 0 9M '14 9M '13

21. Slide 21: Financial Highlights

    FINANCIAL HIGHLIGHTS For the Nine Months Ended September 30, 2014 and 2013 (In Millions PhP) EBITDA and Net Income were down by 19% and 33%, respectively 24,000 22,000 20,000 18,000 9,752 16,000 8,906 14,000 Revenues -9% 12,000 10,000 Expenses -1% 8,000 7,601 7,497 6,000 EBITDA -19% 4,000 2,538 3,13

22. Slide 22: Capital Expenditures

    CAPITAL EXPENDITURES (In Millions PhP) Capital Expenditure availments amounted to P967 million as of September 30, 2014. 1,065 1200 1000 98 REMAINING 800 600 9M 896 956 967 400 832 628 673 600 428 200 0 2007 2008 2009 2010 2011 2012 2013 2014

23. Slide 23: Consolidated Balance Sheets

    CONSOLIDATED BALANCE SHEETS (In Millions PhP) Current Assets 15,000 Current Liabilities 10,000 15,000 5,000 8,444 10,000 7,487 Current Ratio 3.00 5,000 0 4,601 9M '14 9M '13 3,674 2.00 0 1.84 2.04 9M '14 9M '13 1.00 Total Assets 0.00 Total Liabilities Equity 9M '14 9M '13 15,000 15,000 10,000 14,266

24. Slide 24: Thank you!

    Thank you! Kapuso ng pamilyang Pilipino, anumang kulay ng buhay.

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