Atlanta Braves Holdings, Inc. - Series A · NASDAQ:BATRA
Atlanta Braves Holdings, Inc. - Series A — Liberty Media — Investor Day (November 2017)
52 slides from Atlanta Braves Holdings, Inc. - Series A's investor day presentation, Nov 16, 2017
Slide 1: 2017 Investor Day
Liberty Media Corporation 2017 Investor Day November 16, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, new service and product launches, Formula 1 tax considerations, new s
Slide 3: Agenda
Agenda 12:00 – 12:50 Experience Liberty & Lunch 12:50 – 1:00 Welcome………………….. Courtnee Chun 1:00 – 1:20 Liberty Media……………... Greg Maffei & Mark Carleton 1:20 – 1:40 SiriusXM………………….. Jim Meyer 1:40 – 2:00 Formula 1………………….. Chase Carey 2:00 – 2:20 Live Nation……………….. Michael Rapino 2:20 – 2:30 Atla
Slide 4: Live, Liberty and the Pursuit of Returns
“Live, Liberty and the Pursuit of Returns” Greg Maffei – President & CEO
Slide 5: Liberty Media: Oh, The Places We've Been
Liberty Media: Oh, The Places We’ve Been… 2012 2013 2014 2015 2016 2017 Liberty Media Group renamed Formula One Group Recapitalized into three tracking stocks Indicates tracking stock. Indicates asset-backed stock. 5
Slide 6: Milestones Since Last Meeting
Milestones Since Last Meeting • SiriusXM completed $480m strategic investment in Pandora • Represents 19% stake of current shares outstanding and 16% stake on as-converted basis • SiriusXM closed $440 million recapitalization of SiriusXM Canada • Sirius XM acquired Automatic Labs for $107m (net of c
Slide 7: Long Term Returns Outstanding
Long Term Returns Outstanding Composite LMC(1) • Value per share up over 10-fold since issuance in May-06 As of 11/10/2017 • Composite Liberty Media CAGR of 26.8% versus 6.0% S&P and 9.7% NASDAQ $1,400 $1,200 LMC Composite Price per Share $1,000 $800 $600 $400 $200 $0 FWONA LMDIA LSTZA DTV STRZA FWO
Slide 8: Effective Deal Structure for Formula 1
Effective Deal Structure for Formula 1 • Gained control of iconic asset with modest cash outlay • Took strategic steps to reduce equity consideration paid to selling shareholders • Brought in third party investors for efficient additional equity financing of $1.55b • Closed $450m FWONK convertible n
Slide 9: Discount to NAV at Liberty SiriusXM Group
We Do Know There is a Discount to NAV at Liberty SiriusXM Group $ in millions (except share price data) 3.2b SIRI shares x $5.34 $16,886 • Potential explanations? (1) Cash $160 • Supply demand dynamics of SIRI vs. LSXM Margin loan debt ($250) (2) • SIRI: $8b public float with ~$2b annual buyback pro
Slide 10: Liberty's Portfolio Favors Power of Live
Liberty’s Portfolio Favors Power of Live Racing Concerts Audio Baseball 20 races in 2017 29k Live Nation Live talk, news, 81 regular season 21 races in 2018 events this year sports, special home games in 2017 events Why Does LIVE Succeed? 10
Slide 11: Maximizing Time and Wallet Share
Maximizing TIME and WALLET share • Time Share: Where are consumers spending their time? • Consumers want LIVE – experiences, television, audio • Wallet Share: What companies are effectively monetizing consumer, advertising and sponsorship dollars? • Consumers will pay for LIVE • Company ad and spons
Slide 12: Live Events Command Massive Time Share
Live Events Command Massive Time Share Percent of US Population Attending Music Events in 2016(1) Sporting Event Attendance 70% (2) 59% 138k 60% (2) 50% 136k 41% 40% 40% (3) 33% 69k 30% (4) 20% 16% 36k 14% (5) 10% 30k 0% (6) Live Small live Live Music Club events Club events 18k concerts music conce
Slide 13: Live Content is Differentiator for SiriusXM
Live Content is Differentiator for SiriusXM • Expanding live broadcast events to provide even more exclusive content to subscribers 15 news and public Exclusive live Interviews and radio channels music events performances straight from music festivals 66 sports channels with iconic hosts Live talk s
Slide 14: Today, Sports Dominate Broadcast TV
Today, Sports Dominate Broadcast TV • Live TV remains leader of media time share • Average adult spends 4 hrs 21 mins per day watching linear TV(1), bulk of that is on live • Oscars were only non-sports content in 2016 top 10 single telecast programs • ESPN lost over 10m subscribers since 2011, but
Slide 15: Global Sports Capture Even More Attention
Global Sports Capture Even More Attention Recent Global Sport Event Viewership Cricket World Cup “We have 21 races – we Final: 1 should have 21 Super Bowls.” billion(1) -Chase Carey Summer Formula 1 Champions Olympics FIFA Grands Prix: League Opening World Cup 352 million(2) Final: 350 Ceremony: Fin
Slide 16: More Time with Mobile, More Time with Sports
More Time with Mobile, More Time with Sports • Sports fans more likely to be multi-platform or mobile only(1) • 186m people access sports content via digital platforms(2) • ESPN digital properties have 76m unique visitors per month(3) • Clips on social media drive tune-in to main broadcast • Social
Slide 17: More Digital Platforms, More Time with Audio
More Digital Platforms, More Time with Audio • Rise of digital has not reduced time spent on broadcast radio • Digital music consumption +8.9% vs. PY(1) “I still got Pandora • Pandora top 3 mobile app by minutes spent(2) with commercials.” -LeBron James(6) • While broadcast radio reach has remained
Slide 18: Conclusion: We Have Their Time
Conclusion: We Have Their Time… • 3 hours 1 minute per Braves game(2) • Up to 7 hours of F1 practice / racing per • 162 regular season Grand Prix MLB games in weekend(1) 2017(3) • 3+ days of F1 • Battery captures activities per race increased time spent weekend(1) before and after game • 29k Live Na
Slide 19: What About Their Wallet?
… What About Their Wallet? Consumer Wallet Share Goes to Live Events I Spend Money On…(1) While We Have Them on Millennials Gen X Baby Boomers Site… Taxis and Ubers 53% 29% 15% Coffee that costs 60% • Concession per-caps +31% and 40% 29% more than $4 each retail per-caps +45% last season Latest elec
Slide 20: Live Events Dominate Corporate Wallet Share
Live Events Dominate Corporate Wallet Share Rising Global Sponsorship Spending(1) 2016-2017 Season We’ve Captured Some $62.8b $1.25b $60.1b sponsorship • 130 corporate sponsors $57.5b $55.3b revenue(3) • 2017 corporate partner $53.1b revenue highest in team history 20+ official 2013 2014 2015 2016 2
Slide 21: Liberty Companies Very Well Positioned
So How Do We Stack Up? ... Liberty Companies Very Well Positioned Economic Competitive Meaningful Secular Time Wallet Share Scale Model Positioning Governance Tailwinds Share Consumer Corporate 21
Slide 22: Mark Carleton – CFO
Mark Carleton – CFO
Slide 23: Formula One Group Share Count
In Case You Missed It… Formula One Group Share Count(1) FWONA 25.6 FWONB 2.5 FWONK 201.5 Exchangeable Notes(2) ________________________________ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______ __
Slide 24: Formula One Group Debt Overview
Formula One Group Debt Overview $ in millions $5,609 $ in millions As of 9/30/17 Formula 1 Debt $2,280 Corporate Level Debt Formula 1 Bank Loans $3,302 Revolving Credit Facility(1) $- Delta Topco Exchangeable Notes $27 $27 Delta Topco Exchangeable Notes Corporate Level Debt 1.375% convertible notes
Slide 25: Impactful Formula 1 Debt Restructuring
Impactful Formula 1 Debt Restructuring $90m+ net annualized interest savings(1) and 2+ yrs maturity extension $ in millions $270 $35+ $35+ $20+ $180 Annual Interest Expense Net Interest Expense Reductions Est. Annual Interest Expense at March '17 May / June '17 August / September '17 Pro Forma Annua
Slide 26: Formula 1 Tax Considerations
Formula 1 Tax Considerations • Under proposed new UK tax legislation, UK interest expense deductions would be limited to 30% of UK EBITDA • Legislation should be formally enacted Q4-17; expected to be retroactive to 4/1/17 • Substantially all deductible interest will be related to bank debt • Carry
Slide 27: Formula 1 P&L Explained
Formula 1 P&L Explained HISTORICAL RESULTS (1) QUARTERLY DISCLOSURE(2) (amounts in millions) 2014 2015 2016 1Q17 2Q17 3Q17 Primary Formula 1 revenue $ 1,374 $ 1,391 $ 1,502 $ 79 $ 527 $ 430 Other Formula 1 revenue 328 306 294 18 89 71 Total Formula 1 revenue $ 1,702 $ 1,697 $ 1,796 $ 97 $ 616 $ 501
Slide 28: Appendix
Appendix 28
Slide 29: Composite LMC – It All Adds Up
Composite LMC – It All Adds Up • 5/9/06: LCAPA (“LMC”) tracking stock issued • 3/3/08: LMC issues LMDIA/B 4-for-1 As of 11/10/2017 • 11/19/09: DTV spun from LMDIA 1-for-1; remaining assets become LSTZA on a 0.10-to-1 basis FWONA 8.96 LSTZA tracker 100.29 • 11/28/11: LMC re-combines with LSTZA on a 0
Slide 30: Formula One Group Attributed Debt Cheat Sheet
Formula One Group Attributed Debt Cheat Sheet 1.375% Convertible Notes 1.0% Convertible Notes 2.25% Exchangeable Debentures Description Issuing Entity Liberty Media Corporation Liberty Media Corporation Liberty Media Corporation Attributed Tracking Stock Formula One Group Formula One Group Formula O
Slide 31: Overview of 2.25% Exchangeable Senior Debentures due 2046
Detailed Overview of 2.25% Exchangeable Senior Debentures due 2046 • Attributed to Formula One Group • $445m Exchangeable Senior Debentures • 2.25% quarterly-pay coupon • Final maturity in 2046 with put-call in 2021 • Reference 4.25m TWX shares attributable to debentures • Exchange price of $104.55
Slide 32: Overview of 1.375% Cash Convertible Notes due 2023
Detailed Overview of 1.375% Cash Convertible Notes due 2023 • Attributed to Formula One Group • $1b Convertible Senior Notes • 1.375% semi-annual coupon • Final maturity 2023 • Cash settle • Basket of securities per $1,000 notes includes: • 21.0859 shares of LSXMA • Based on 1.000 LSXMA conversion r
Slide 33: Formula 1 P&L Explained Even More
Formula 1 P&L Explained Even More (amounts in millions) HISTORICAL RESULTS (1) QUARTERLY DISCLOSURE(2) 2014 2015 2016 Q1-17 Q2-17 Q3-17 Total Formula 1 Revenue $1,702 $1,697 $1,796 $97 $616 $501 Operating Expenses Team Payments ($843) ($883) ($965) ($47) ($330) ($273) Team Payment Fee Amortization (
Slide 34: Braves Group Debt
Braves Group Debt As of 9/30/17 Total Outstanding ($ in millions) Capacity Team Operating Debt MLB Leaguewide Credit Facility $100 $38 Non-recourse to Braves Holdings SunTrust Revolver $85 $43 Secured by various revenue streams, including: Ballpark Debt • Naming Rights • Suite and Club Seat Premiums
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations This presentation includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Formula 1, together with reconciliations to operating income, as determined under GAAP. Liberty Media defines adjusted OIBDA as revenue less operating expenses, and sellin
Slide 36: Atlanta Braves November 2017
AT L A N TA B R AV E S NOVEMBER 2017
Slide 37: Disclaimer
Disclaimer Braves Holdings, LLC (the “Company”) and its directors, officers, employees, affiliates, agents, advisors and representatives (collectively, “Associates”) make no representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation or
Slide 38: SunTrust Park Timeline
SunTrust Park Timeline • November 11, 2013 • Atlanta Braves announce move to Cobb County • September 16, 2014 • Braves break ground, announce ballpark will be called SunTrust Park • August 27, 2015 • First brick is laid • June 13, 2016 • Final steel beam is installed • February 24, 2017 • Certificat
Slide 39: SunTrust Park's Successful Inaugural Season
SunTrust Park’s Successful Inaugural Season Opening Day April 14th sold out with 41,149 people • Opened on-time and on-budget • Opening night revenue was largest for a regular season game in team history Braves Group revenue +50%(1) Per game average attendance 30,929 (+23%) Ticket Sales revenue +76%
Slide 40: The SunTrust Park Experience
The SunTrust Park Experience Something for everyone – affordable tickets for families, premium and group space, social gathering spaces Baseball focused design with intimate seating Two SOLD OUT concerts – Billy Joel and Metallica Game day experience significantly improved as fans came early and sta
Slide 41: SunTrust Park – Like No Other!
SunTrust Park – Like No Other! Fan Favorites Monument Garden Hope and Will’s Sandlot Zip Line Climbing wall Premium Clubs SunTrust Club Delta Sky360 Infiniti Traffic not an issue Chilled cup holders Below the Chop Became first sports team to partner with Waze to direct fans directly to parking lots
Slide 42: Ticket Sales Surge
Ticket Sales Surge 2,505,297 total tickets sold in 2017 season Ticket sales +24% vs. 2016 season (500,000+ more tickets) 10 ballpark sell-outs vs. 3 in 2016 Season tickets 54% of tickets sold vs. 40% in 2016 In general, Braves goal to have 50% tickets sold via full and/or partial season tickets by o
Slide 43: Highest Corporate Revenue in Team History
Highest Corporate Revenue in Team History 130 corporate sponsors 2017 corporate partner revenue is the highest in team history - +89% vs. 2016 Major sponsorship contracts have average length of 10+ years with approximately 3% average annual escalators Upside still exists to continue to grow revenue
Slide 44: 2017 Braves On-Field Review
2017 Braves On-Field Review Finished season 72-90, third place in NL East Centerfielder Ender Inciarte participated in his first All-Star Game in Miami Season Braves finished with a National League-high 20 victories in their final at-bat 20 final-at-bat victories in 2017 trailing only Boston’s 22 fo
Slide 45: The Battery Atlanta is a Hit
The Battery Atlanta is a Hit The Battery Atlanta project opening in phases Predictable revenue streams due to long-term contracts (1) % Complete: Percentage of project work completed based on dollar value invoiced against total value of contract. (2) % Bought Out: Percentage of dollar value of the C
Slide 46: Retail Partners Continue to Populate
Retail Partners Continue to Populate 200,000 square feet total 70% leased with 42% open, 15% of remaining spaces have letters of intent Intentionally withholding some space for best-in-class operators Restaurants showing $627 sales per square foot Expect remaining leases to be filled through Q2-18 N
Slide 47: Top Tenants at The Battery Atlanta
Top Tenants at The Battery Atlanta ATLANTA BRAVES 12 NOVEMBER 2017
Slide 48: Residential Units Met with Strong Demand
Residential Units Met with Strong Demand 70% leased of the 80% available Unprecedented leasing activity in number of leases signed as units became available Average rent is $2.05 per square foot, above the submarket average of $1.70 Tenants are a mix of young professional and empty nesters with an a
Slide 49: Coca-Cola Roxy Attracting Big Names
Coca-Cola Roxy Attracting Big Names Coca-Cola Roxy operated by Live Nation opened on April 8th and is scheduled to have a total of 29 events in 2017 Average 3,400 tickets sold per event, average ticket $35 Harry Styles Dave Chappelle with John Mayer Lil’ Wayne Bush Ke$ha T.I. Committed to minimum 50
Slide 50: More to Come
More to Come… Office Comcast headquarters opened November 15, 2017 with 15-year lease, 1,000 employees, AAA credit tenant Loft office space 100% leased Tenants: Spaces Co-Working, CA South, Southern Lighting Source, 680 the Fan radio Hotel Omni set to open January 3, 2018 Increased pre-sell room rat
Slide 51: Braves Capital Spend Review
Braves Capital Spend Review Braves ballpark spend $328M as of Q3-17 Remaining spend is retainage withheld until official project close (expected Q4-17) All remaining construction portions of Battery on-budget $398m total spent-to-date on Battery Braves portion of funding $364M; $188M in equity and $
Slide 52: Thank You
a < . paitcres Thank You