Vocento, S.a. · BME:VOC

Vocento — FY2018 Earnings Presentation

28 slides from Vocento's earnings presentation, Feb 28, 2019

  1. Slide 1: 2018 Results

    2018 RESULTS 28 February 2019 1 Results 2018

  2. Slide 2: Contents

    CONTENTS 1. BUSINESS PERFORMANCE 2. APPENDICES 2 Results 2018

  3. Slide 3: Main highlights of 2018

    MAIN HIGHLIGHTS OF 2018 STEADY IMPROVEMENT IN ADVERTISING OVER THE YEAR • VOCENTO advertising revenues 2018 -1.9%. In 4Q18 +0.4% • Growth of digital advertising in 2018 +11.1%. Divergent performance at abc.es (+22.2%) and Regional (+6.3%) • Resilience of local advertising at Vocento: -0.2% POSITIVE

  4. Slide 4: Focus on classifieds

    F O C US O N C L A S S I F I E D S Description of transaction Main financials 2018 Data in €m Revenues EBITDA Desarrollo de Autoscout24 Clasificados, S.L Gmbh Autocasión 7.2 2.1 50% 50% Autoscout24 6.9 2.5 +1 share Alpinia Total pro-forma 14.0 4.6 Note 1: data not audited. EBITDA excluding restructu

  5. Slide 5: A stagnant advertising market

    A STAGNANT ADVERTISING MARKET VOCENTO performs in line with the print market in 2018 YoY variation % Online advertising 14.8% at Regional 10.6% impacted by ON+ 0.5% -1.9% -6.8% -6.5% Total market Offline Online1 Market VOCENTO 5 Source for market i2p. Note 1: including Local Portals (+6.3%), ABC.es

  6. Slide 6: Increased weight and improved performance of local advertising

    I N C R E A S E D WE I G H T & I M P R O V E D P E R F O R M A N C E O F L O C A L A D V E R T I S I N G National advertising vs local1 National advertising1: Print vs Digital 52.2% 58.9% 47.8% 41.1% 2017 2017 2018 2018 €159.6m €156.8m Var % 2017-2018 Offline Online National -3.8% 44.7% 43.7% Local

  7. Slide 7: Press highlights

    PRESS HIGHLIGHTS Regional ABC • Pioneers in Spain in pay model • Registration required for access to premium ➢ Launch of model ON+ 2.0 with 21,000 content subscribers, +51% in 2018 • Leadership of ABC.es in readership ➢ Focus on quality over advertising space • Ordinary circulation in Madrid: increa

  8. Slide 8: Regional: decrease in profitability

    R E G I O N A L : D E C R E A S E I N P R O F I T A B I L I TY Comparable EBITDA at the Regional Press Variation 2017 vs 2018 except comparable EBITDA €m and comparable EBITDA margin % EBITDA Margin1 16.5% 15.7% 38.6 -3.3 -1.6 35.7 1.9 20171 Advertising2 Margin on Personnel 20181 circulation costs3

  9. Slide 9: ABC: margins expand thanks to key variables

    ABC: MARGINS EXPAND THANKS TO KEY VARIABLES Comparable EBITDA at ABC Variation 2017 vs 2018 except comparable EBITDA €m and comparable EBITDA margin % EBITDA Margin1 5.9% 7.6% 0.6 -0.1 6.8 0.7 5.6 Combined 20171 Advertising2 Personnel 20181 margin on circulation costs and others3 9 Note 1: excluding

  10. Slide 10: Focus on costs and new businesses

    F O C US O N C O S T S A N D N E W B US I N E S S E S Comparable EBITDA at VOCENTO Variation 2017 vs 2018 except comparable EBITDA (€m) New businesses: Corporate Press online +offline : €- €+0.7m €-2.8m 1.1m 49.7 -6.5 5.6 -4.6 1.0 -2.8 1.5 -1.2 0.9 3.6 -0.7 46.4 v v v Comp. Circulation Circulation P

  11. Slide 11: Profitability maintained despite challenging environment

    PROFITABILITY MAINTAINED DESPITE CHALLENGING ENVIRONMENT Performance of main financials at VOCENTO 2011-2018 €m Net profit in 2018 €10.9m 240.6 192.3 157.9 166.6 163.0 163.1 160.0 156.5 50.2 52.2 49.7 44.1 46.4 40.7 38.5 37.0 2011 2012 2013 2014 2015 2016 2017 2018 Comparable EBITDA Advertising 11 N

  12. Slide 12: Steady change in the contribution of the businesses

    S T E A D Y C H A N G E I N T H E C O N T R I B UT I O N O F T H E B US I N E S S E S Comparable EBITDA by business €m y peso % 50.2 46.4 0.8 1.1 37.0 3.2 3.5 12.6 12.3 5.2 85% of 46.6 40.9 78% 43.2 73% total1 -1.3 -0.3 -11.4 -9.9 -13.1 2013 2015 2018 Weight of digital/ 17.0% 21.5% 29.2% Newspaper a

  13. Slide 13: Debt reduction and cash generation

    D E B T R E D UC T I O N A N D C A S H G E N E R A TI O N Development of net financial debt at VOCENTO €m Ordinary cash generation €27.2m NFD/Comparable NFD/comparable EBITDA 1.1x EBITDA 0.9x 56.2 46.4 1.2 43.0 7.2 5.6 13.0 29.0 10.7 4.4 NFD Comp. Working capital Capex Financials Comp.NFD Comp. Mino

  14. Slide 14: Ordinary cash flow since 2011 to reduce debt

    O R D I N A R Y C A S H F L O W S I N C E 2 0 1 2 T O R E D UC E D E B T Main financials at VOCENTO 2011-2018 €m 149.3 138.7 142.9 125.9 108.8 66.4 56.2 43.0 21.0 8.6 27.4 21.6 27.2 -4.9 2.0 4.3 -6.3 14.8 21.4 -10.7 -10.3 -13.2 -11.3 -14.0 2011 2012 2013 2014 2015 2016 2017 2018 Ordinary cash genera

  15. Slide 15: Consolidated P&L

    CONSOLIDATED P&L IFRS €m 2017 2018 Var% 2017 (IFRS15) Operating revenues 386.0 395.1 -2.3% 423.9 Operating expenses ex. comparable depreciation1 -339.6 -345.4 1.7% -374.2 Comparable EBITDA1 46.4 49.7 -6.6% 49.7 Personnel adjustment measures and one-offs -5.2 -10.1 48.3% -10.1 EBITDA 41.2 39.6 4.0% 3

  16. Slide 16: Contents

    CONTENTS 1. BUSINESS PERFORMANCE 2. APPENDICES 16 Results 2018

  17. Slide 17: A stagnant advertising market

    A STAGNANT ADVERTISING MARKET Growth in advertising market (traditional series) and macro variables Data in % 5% 10% 5.0% 5% 5.8% 2.9% 0.6% 0.5% 0% 0% -5% -5% -10% -10.1% -15% -18.0% -10% -20% 2012 2013 2014 2015 2016 2017 2018 Advertising market (right axis.) Nominal GDP (left axis.) Nominal consum

  18. Slide 18: Margin defended despite fall in circulation

    M A R G I N D E F E N D E D D E S P I T E F A L L I N C I R C UL A T I O N Development of the margin on circulation 2011-2018 Accumulated €m Printing EBITDA variation improves by €+1.5m 2011-2018 thanks to agreement 192.4 175.2 168.9 Revenues from 158.0 -75.5 11.4 148.7 circulation1 139.3 132.8 4.2

  19. Slide 19: Increase in EBITDA thanks to cost reductions

    I N C R E A S E I N E B I T D A T H A N K S T O C O S T R E D UC T I O N S Development of comparable EBITDA VOCENTO 2011-2018 VOC brands increase comparable Variation 2018 vs 2011 except comparable EBITDA (€m) EBITDA by €+1.9m 6.2 46.4 40.7 -53.6 26.0 12.4 21.6 -2.1 -4.8 Comp. Advertising2 Combined

  20. Slide 20: ABC holds number two rank in Madrid

    A B C H O L D S N UM B E R T WO R A N K I N M A D R I D ABC share of ordinary circulation in Comunidad de Madrid % 36.8% 36.4% 36.4% 35.1% 35.1% 27.3% 27.3% 27.7% 26.6% 25.6% +5.9 p.p. market share since 2011 22.7% 22.8% 23.3% 23.4% 21.9% 14.6% 14.9% 14.4% 14.0% 13.7% 2011 2012 2013 2014 2015 2016 2

  21. Slide 21: Financial appendix

    FINANCIAL APPENDIX 21 Results 2016 2018

  22. Slide 22: Consolidated balance sheet

    CONSOLIDATED BALANCE SHEET IFRS 2018 2017 (Data in €m) Non-current assets 344.8 330.9 Current assets 124.4 136.3 Assets maintained for sale 0.3 0.5 TOTAL ASSETS 469.5 467.7 EQUITY 280.4 252.0 Financial debt 64.4 79.6 Other non-current liabilities 31.9 38.9 Other current liabilities 92.7 97.2 TOTAL L

  23. Slide 23: Variation in net financial debt 2018

    VARIATION IN NET FINANCIAL DEBT 2018 IFRS 2018 2017 (Data in €m) Comparable EBITDA 46.4 49.7 Variation in working capital 4.4 -9.7 Capex -10.7 -8.7 Other items1 -1.8 0.1 Cash flow from recurring activities 38.4 31.3 Interest received 0.3 0.4 Dividend and interest payments2 -11.5 -10.1 Total ordinary

  24. Slide 24: Revenues by business area

    R E V E N UE S B Y B US I N E S S A R E A Newspapers (€m) Audiovisual (€m) 336.4 326.6 44.5 36.1 26.7 24.1 13.3 4.1 94.3 89.8 Supp. & Mag. Content 4.1 3.4 ABC Radio 234.1 227.6 Regional DTT 27.3 28.8 Elimin. Elimin. -18.7 -14.8 -0.2 - -0.2 2017 2018 2017 2018 Classifieds (€m) Gastronomy and others (

  25. Slide 25: Comparable EBITDA by business area

    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 A R E A Newspapers (€m) Audiovisual (€m) 44.4 43.2 13.5 12.3 0.2 0.7 5.6 6.8 4.9 3.3 Supp. & Mag. 2.5 2.6 Content 38.6 35.7 ABC Radio 6.0 6.4 Regional DTT 2017 2018 2017 2018 Classifieds (€m) Gastronomy and others (€m) 2.3 3.2 -0.2 0.8 3.2 2.3 2.1

  26. Slide 26: Alternative Performance Measures (APMs)

    A L T E R N A T I V E P E R F O R 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 9M 2018. The full-year results report includes, as well as the definitions and calculation method

  27. Slide 27: Disclaimer

    DISCLAIMER This document contains forward-looking the documentation and information published or statements regarding intention, expectations or registered by the Company before the National estimates of the Company or its management at Securities Market Commission. the date of issue thereof, relati

  28. Slide 28: 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 28 Results Results 2018

Vocento — FY2018 Earnings Presentation on 6ix