Atlanta Braves Holdings, Inc. - Series A · NASDAQ:BATRA
Atlanta Braves Holdings, Inc. - Series A — Atlanta Braves Holdings — Investor Day (November 2023)
63 slides from Atlanta Braves Holdings, Inc. - Series A's investor day presentation, Nov 9, 2023
Slide 1: 2023 Investor Day
2023 Investor Day NOVEMBER 9, 2023
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Liberty Media Corporation (“Liberty Media”) and Atlanta Braves Holdings, Inc. (“Atlanta Braves Holdings”), includi
Slide 3: Disclaimers (cont)
Disclaimers (cont) INDUSTRY INFORMATION Certain information included herein concerning Liberty Media’s, Atlanta Braves Holdings’ and Qurate Retail’s respective businesses and the related markets or industry position or prospects, as well as industry or market data and other statistical data regardin
Slide 4: Premium IP…lives forever.
Premium IP…lives forever. GREG MAFFEI PRESIDENT & CEO
Slide 5: Updates Since Our Last Meeting
Updates Since Our Last Meeting • Simplified tracking stock and reduced net debt balance by $533m • Proposed split-off and combination with Sirius XM Holdings • SiriusXM improved operating results throughout year • Debuted next gen streaming app on 11/8, expect to strengthen position in and out of ca
Slide 6: Investor Day Debut
Investor Day Debut Revisiting Liberty Live Group Creation Previous Tracking Stock Structure Simplifications • Simplified tracking stock structure • Cleaner equity for investment in attractive Liberty Media Group Live Nation business • Focused investment opportunities at LLYV • Evolving investment th
Slide 7: When You Love Something, Set it Free
When You Love Something, Set it Free Merits to Being Standalone Public Company: BATR • Aim to reduce discount to private market value +12% to +38% From Nov ’22 Annc. to Today(1) BATR • Increased liquidity as standalone public equity +130% Avg. Daily Volume Post Split-Off(2) • Removed complexity of i
Slide 8: Things We’ve Said…
Things We’ve Said… Liberty Investing in Premium Businesses and Exiting Traditional Media Pre-2016 Focus on Subscription Businesses, Exit Vulnerable Media, Seek Protected Niches Where We Can Be Market Leader, Increase Emotional Engagement in Customer Experience, Think Global 2016 Music Streaming has
Slide 9: …What We’ve Done and Where We’re Going
…What We’ve Done and Where We’re Going Acquired Sold Investment Addtl. Investment Sold Acquired Annc. Acquisition 2007 2009 2009 2010 2016 2017 2023 Focused on Premium IP Ecosystem 9 Quint acquisition pending, expected to close by year-end.
Slide 10: What Does it Mean to be a Premium IP Owner?
What Does it Mean to be a Premium IP Owner? Exclusive Commercial Rights Holder to F1 World Championship The global pinnacle of motorsport for 73 years 2023 calendar spans 20 countries and 5 continents Fans Scarcity are Increases Longest Continually Operating Sports Customers Demand Franchise with On
Slide 11: Fandom: Loyal and Growing…
Fans are Customers Fandom: Loyal and Growing… Incredible Fan Growth and Massive Global Engagement Across Platforms 2022 vs. 2018(1) 40% Growth 40% Female Fans 37yr Avg. Fan Age 1/3 Fans Overall Fandom (+25% vs. 2018) (Down from 40yr in 2018) Started Following F1 in Last 4yrs 2018 2023(2) Linear Line
Slide 12: …Especially in Key US Growth Market
Fans are Customers …Especially in Key US Growth Market Huge Crowds at North American Races Engaging US Audiences 3 of 4 Largest US Live Race 2.0 1.8 1.8 Audiences in Million Million Million Miami ‘22 Canada ’22 Austin ’22 Mexico ’22 Miami Monaco Canada 243k 338k 440k 395k 2023 Season 19% F1 TV US Su
Slide 13: There is Only One
Scarcity Increases Demand There is Only One High demand meets scarcity of supply DEMAND SUPPLY Competition amongst and within host Limit to amount of race weekends countries, new race locations, Race Promotion +5% CAGR(1) on calendar higher fan attendance Additional players in sports rights Scarcity
Slide 14: Expanding Valuable IP
Scarcity Increases Demand / Opportunities for Expansion Expanding Valuable IP Demonstrating Brand Value… +12 New Commercial Sponsorship Team values up avg. >5x since Drawing new star-studded investors Partners Added Since 2021 Liberty acquisition(1) into F1 teams …Broadening Experience to Create Eve
Slide 15: Extending Reach in Premium Experiences With Quint
Opportunities for Expansion Extending Reach in Premium Experiences With Business Overview • Industry leader in hospitality and travel solutions for marquee sporting events around world • Partner with event organizers to package and sell ticketing inventory with unique, premium experiences • Bring fa
Slide 16: Vegas: It’s About More Than A Race
Opportunities for Expansion Vegas: It’s About More Than A Race Unmatched Excitement for the Race(1) Value for Broader F1 Ecosystem 144m Social Impressions 12m Engagements 71m Video Views Expand opportunities with Grow F1 fandom and build commercial partners brand value (esp. in Americas) Significant
Slide 17: Deepening Our Fan Relationships
Opportunities for Expansion Deepening Our Fan Relationships Linear F1.com 70m 24.9m 9.8m 7.2m Approximate 110m Avg. Viewership Unique Users per Race 13.0m 9.6m Expanding DTC opportunities to gain additional insight into growing fanbase Leveraging data and customer insight to tailor fan outreach, imp
Slide 18: Live Nation: Controlled Supply and Huge Demand Drive Growth
: Controlled Supply and Huge Demand Drive Growth When Fans are Your Customers Supply Of Artists Drives Demand North America Concerts 90% Fans say if their favorite artist is in town, International Concerts they always find a way to buy tickets Total Attendance Global fans say one of the most memorab
Slide 19: SiriusXM Curates Premium Content AND Relationships
Curates Premium Content AND Relationships Programming of Premium, Scaled Brand Value Fans are Customers Desirable Content Attracts Talent • Hosts and celebrities • Form relationships with personalities • Quality of brand • Sense of community and comfort • Leveraging premium content • Ease of use mod
Slide 20: Braves Country = Best Country
Braves Country = Best Country Reinvigorating Baseball Braves Very Successful Team within Reinvigorated Sport • MLB energized fans with new rule changes • Incredible season • More action-filled product and boosted demand(1): • Clinched sixth straight NL East title 24 minute Reduction in avg. game tim
Slide 21: History of Strong Returns: LMC Composite Price per Share
History of Strong Returns Focused on Shareholder Returns: Composite LMC(1) Value per Share Up 15-Fold Since Issuance May 2006 $2,000 $1,800 $1,600 LMC Composite Price per Share $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FWONA LMDIA LSTZA DTV STRZA LGF/B FWONK LBRDA LBRDK LBRDK Rights LSXMA LSXMK LS
Slide 22: Sustainable Business: It’s Good Business
Sustainable Business: It’s Good Business Sustainability Initiatives that Drive Real Value for Stakeholders and Shareholders Real community impact including through the Synthetic e-fuels: transitioning to cleaner fuel Atlanta Braves Foundation without compromising competitive racing. Expanding applic
Slide 23: Brian Wendling
Brian Wendling CHIEF ACCOUNTING OFFICER & PRINCIPAL FINANCIAL OFFICER
Slide 24: It Happened.
It Happened. Redemptive Split-off of Braves Recapitalization of LMC Collection of private and public assets 30% LSXM shares LLYV shares FWON shares 24
Slide 25: Liberty NAV Refresh
Liberty NAV Refresh $ millions SiriusXM 84% Formula 1 100% Live Nation 30% 3,205.8m shares 69.6m shares Cash(1) $75 Cash and Liquid Investments(3) $1,157 Cash and Liquid Investments(5) $417 Quint $313 Private Assets(6) $380 Vegas Land Acquisition Price $241 Other Private Assets(4) 3.75% Convertible
Slide 26: 2023 Actions to Simplify LSXM Balance Sheet
2023 Actions to Simplify LSXM Balance Sheet • Key capital markets activities: LSXM Net Debt(2) $ billions • Issued 3.75% LSXMA convertible $2.33 $533m lower leverage improves net debt- • Retired 2.125% SIRI exchangeable to-asset value(3) to 11.3% (from 14.7%) • Retired 1.375% basket convertible • In
Slide 27: Liberty Live Group Liquidity
Liberty Live Group Liquidity Liquidity & Public Securities $ billions Total Public Equities $1,760 69.6m LYV shares Unencumbered Public Equities $5,945 Encumbered Shares 49.0m LYV shares $4,184 Cash, Cash Equivalents, Marketable Securities $817 and Margin Loan Capacity $817 Primary Sources of Liquid
Slide 28: Brake-ing Out Components That Fuel F1 OIBDA
Brake-ing Out Components That Fuel F1 OIBDA Realizing Leverage on Team Payments Investing in Growth Opportunities $ millions FWON Operating Expenses Excl. Team Payments 69.5% YTD 2022 YTD 2023 68.3% 67.7% Other Cost Other Cost of F1 of F1 Revenue Revenue excl. excl. freight, freight & hospitality 66
Slide 29: F1 Consistently Strong FCF Conversion
F1 Consistently Strong FCF Conversion Adjusted OIBDA to FCF Conversion 2018-2023E(1) F1 OpCo - 5-yr. Avg. • Attractive margins and low capital intensity (excl. 2020) F1 Adj. OIBDA 100% • Largest cost item (teams’ Prize Fund) Working Capital 11% 100% variable since 2021 Capital Expenditures (8%) • Ti
Slide 30: Managing Leverage…
Managing Leverage… • Over last year lowered TLB spread to 225 bps from 325 bps = $17m annual savings • Step down to 300 bps achieved when covenant leverage (1) <2.4x in Q2 • Completed reprice in October to further reduce spread to 225 bps Liquidity F1 OpCo Leverage $ millions FWON Cash Undrawn F1 Re
Slide 31: …While Strategically Investing at FWON
…While Strategically Investing at FWON Strong Cash Flow Generation Has Supported Attractive Investments and Capital Structure Initiatives $2.3b Quint Acquisition Vegas Land Purchase Vegas Pit Building and Track Construction $1.2b F1 Broadcast Center Refurbishment Investment in F1 Arcade Net Debt Red
Slide 32: LVGP – It’s Next Week!
LVGP — It’s Next Week! bee A
Slide 33: Racing Toward the Finish Line
Racing Toward the Finish Line • Long-term investment to race in Las Vegas for 10+ years • Attractive organic investment in F1 business • Meaningful expense and capital deployed for inaugural race to ensure highest quality fan experience • Iconic race will benefit overall F1 ecosystem • Significant o
Slide 34: The Team + The Battery
: The Team + The Battery Third Party Valuations(1) $ millions $2,750 $2,600 $2,540 Stabilized NOI(2) $2,380 Property Type Sq. Ft. Tenants Ownership % ($ millions) $2,100 Retail/Dining 248k Multiple 100% $9.0 $1,875 Comcast, TKE, Papa Johns, Office(3) 916k 100% / 75%(3) $35.0 Truist Securities, Other
Slide 35: ABH Cap Structure: Covering All Our Bases
ABH Cap Structure: Covering All Our Bases • Braves maintain strong revenue growth while continuing to invest in team • Incremental Battery development • Approx. $20m(1) net Office III capital spend complete; expect majority of construction to be completed by beginning 2025 • Modest land contribution
Slide 36: Appendix
Appendix
Slide 37: Braves Financial Detail
Braves Financial Detail Baseball Event Revenue • Tickets, concessions, premium seating, advertising sponsorships, parking • Local broadcasting: local TV, radio Broadcasting Revenue • National broadcasting: ESPN, TBS, Fox, SiriusXM (1/30th share from MLB) Retail and Licensing • Braves retail merchand
Slide 38: Braves Financial Detail (cont)
Braves Financial Detail (cont) • $10-15m anticipated annual run-rate company costs/corporate overhead • Baseball operating expenses consist of: • Player salary and benefits • Concessions and retail costs • Facility and game day expenses • MLB revenue sharing • Contributions per Club based on composi
Slide 39: Composite LMC – It All Adds Up
Composite LMC – It All Adds Up • 5/9/06: LCAPA (“LMC”) tracking stock issued Composite LMC FWONA $15 • 3/3/08: LMC issues LMDIA/B 4-for-1 LSTZA tracker 101 DTV after 1 year: $42.15 x 4 169 • 11/19/09: DTV spun from LMDIA 1-for-1; remaining assets become LSTZA on a 0.10-to-1 basis Earnings on $168.60
Slide 40: Liberty Braves Holdings
ILIBERTY} HOLDINGS
Slide 41: Atlanta Braves 2023 Liberty Investor Day
ATLANTA BRAVES 2023 LIBERT Y INVESTOR DAY DEREK SCHILLER PRESIDENT & CEO 1
Slide 42: A Season of Records
“Te * 2023 A SEASON OF RECORDS
Slide 43: Sellouts, Olson Home Runs
54 SELLOUTS 54 OLSON HOME RUNS 2023 regular season 3
Slide 44: 3.2M Tickets Sold, Team Home Runs
3.2M 307 TICKETS SOLD TEAM HOME RUNS 2023 regular season tickets sold 4
Slide 45: Average Rating, Ronald Acuña Jr.
3.4 AVERAGE RATING 41/73 RONALD ACUÑA JR. 2023 regular season TV rating 5
Slide 46: 20M+ Fans, 104 Wins
20M+ 104 FANS WINS Source: Nielson 6
Slide 47: Atlanta Media Highlights
ATLANTA MEDIA HIGHLIGHTS THE BRAVES RSN BROADCASTS ARE THE HIGHEST RATED PROGRAM ON LOCAL TELEVISION WHEN AIRED IN PRIME TIME 146 Locally Largest Radio Atlanta’s population 17% YOY Increase in Broadcasted games Network in Sports projected to grow to Ratings 8.6M by 2050 with 173+ Affiliates 16 Natio
Slide 48: Our Home Television Territory
OUR HOME TELEVISION TERRITORY 27 METERED MARKETS IN OUR OVER 14M HOME TELEVISION TERRITORY TV HOMES 34 M PEOPLE 7 MARKETS WITH LIVE IN FOOTPRINT OVER 1M PEOPLE Source: Nielsen 8
Slide 49: Market Demand
MARKET DEMAND Premium Tickets 11,000+ Sold Out People on Waitlist Sponsorship Revenue All 95% of Total Ticketing Time High (3rd Straight Inventory Sold Out Year) in 2023 9
Slide 50: Does not include season impacted by COVID-19
Does not include season impacted by COVID-19 10
Slide 51: Ticket, Sponsorship, Concessions and Retail Revenue
Ticket Revenue Sponsorship Revenue Concessions Revenue Retail Revenue YOY increase for the 9 months ended 9/30/23 vs 9/30/22, representing the regular season Retail includes Retail and licensing 11
Slide 52: MLB Growth & Live Sports
MLB GROWTH & LIVE SPORTS 161 million fans 100 million monthly TV viewers The most inventory of any league *Highest attendance since 2017 Source: MLB/Nielsen/ Sports Business Journal 12
Slide 53: The Battery Atlanta
THE BATTERY ATLANTA 37 Tenants with an average lease term of 9.8 years Leasable Square Footage of 1,559,000 (96% occupied) 492 on-site events in 2023 REGIONAL OR CORPORATE HEADQUARTERS OF Comcast Papa Johns Gas South Thyssenkrupp Truist Investments (2025) 13
Slide 54: The Battery Atlanta: 10+M Visitors
THE BATTERY ATLANTA 10+M VISITORS TO THE BATTERY EACH YEAR VISITORS TO THE BATTERY ATLANTA COMPARED TO OTHER US ATTRACTIONS 1. Epcot – 23.6M 6. Disney’s Animal Kingdom – 7.4M 2. Caesars Palace – 19.2M 7. Navy Pier (IL) – 6.8M 3. Magic Kingdom – 15.1M 8. Pike Place Market (WA) – 5.3M 4. Disney’s Holl
Slide 55: The Battery Atlanta Continues to Grow
THE BATTERY ATLANTA CONTINUES TO GROW Opened or signed 7 new retail and office tenants in 2023 in over 80,000 square feet Truist Security Tower Building completion Q4 2024 9 stories 250,000 SF 1,000 employees 750 parking spaces 8,000 SF elevated dining concept space 42,000 SF trading floor More acre
Slide 56: Overall Braves Revenue by Season
OVERALL BRAVES REVENUE BY SEASON Revenue for the 9 months ended 9/30/23 Does not include season impacted by COVID-19 16
Slide 57: 2023 YTD Results
2023 YTD RESULTS (1) YTD results through September 30. See reconciliation of Adjusted OIBDA to GAAP Operating Income in the Appendix 17
Slide 58: Appendix
APPENDIX 18
Slide 59: 2023 Detailed Results
APPENDIX 2023 DETAILED RESULTS - en Baseball Revenue $ 529 $ 478 11% Development Revenue 44 39 12% Total Revenue 573 517 11% Baseball Expenses 490 449 9% Development Expenses 14 13 8% Total Expenses 504 463 9% Baseball Adjusted OIBDA 39 29 35% Development Adjusted OIBDA 30 26 15% Total Adjusted OIBD
Slide 60: 2023 Adjusted OIBDA to Operating Income
APPENDIX 2023 ADJUSTED OIBDA TO OPERATING INCOME em | 90023 9/0/2000 Adjusted OIBDA $ 69 $ 55 Stock-based Compensation (10) (9) Depreciation/Amortization (55) (57) Impairment of (1) (5) long-lived assets and other related costs Corporate Expenses (17) (7) Operating Income $ (14) $ (23)
Slide 61: Braves Development Company 2023 Net Operating Income
APPENDIX BRAVES DEVELOPMENT COMPANY 2023 NET OPERATING INCOME _ SUE, RE wile Ma he FP aie RETAIL/DINING 94% 56% 57% 58% OFFICE* 96% 37 75% 181 75% 360 78% ENTERTAINMENT 100% 2.3 71% 4.3 78% 4.3 74% TOTAL NOI $ 21.9 30.4 $ 48.3 HOTEL* $ 13.7 45% 19.0 $ 19.5 44% OPERATING INCOME-DEVELOPMENT? $ 15.8 20
Slide 62: 2023 Net Operating Income Reconciliation to GAAP Operating Income
APPENDIX 2023 NET OPERATING INCOME RECONCILIATION TO GAAP OPERATING INCOME wm 9780008 Net Operating Income-Development* $ 22 Parking/Other 10 Ownership Expenses (2) Stock-Based Compensation? (1) Depreciation/Amortization (13) Operating Income - Development $ 16 (1) See NOI Slide (2) Stock comp is un
Slide 63: Braves Development Company Leasable Square Footage
APPENDIX BRAVES DEVELOPMENT COMPANY LEASABLE SQUARE FOOTAGE -LEASABLESPACE = SF (000s) Keys_ RETAIL/DINING 248 OFFICE 916 ENTERTAINMENT 104 HOTEL 291 406 (1) Does not include the Innovation Tower or conference space owned/operated by TK or parking squre footage
Atlanta Braves Holdings — Investor Day (November 2023) on 6ix