Slide 1: 2016 Results
2016 RESULTS 28 February 2017 1 2016 Results
Slide 2: Table of Contents
TABLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN 2016 3. OUTLOOK FOR 2017 2 2016 Results
Slide 3: EBITDA increases despite fall in advertising
EBITDA INCREASES DESPITE FALL IN ADVERTISING Main financials, VOCENTO P&L 2011-2016 Cumulative 240.6 variation 2011-2016 Advertising -77.6 192.3 166.6 Comp. EBITDA 11.5 156.5 157.9 163.0 50.2 52.2 Comp. EBIT 33.5 44.1 40.7 38.5 37.0 33.6 30.1 20.2 7.8 4.8 0.1 2011 2012 2013 2014 2015 2016 Comparable
Slide 4: Margin protected despite fall in circulation
M A R G I N P R O T E C T 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 Margin on circulation revenues, 2011-2016 192.4 Cumulative 175.2 variation 168.9 2011-2016 158.0 148.7 Revenues -59.7 9.5 Margin 15.1 5.2 -0.2 0.6 0.1 2012 2013 2014 2015 2016 Annual variation margin on circulation ABC & Re
Slide 5: Performance of digital advertising revenues
P E R F O R M A N C E O F D I G I T A L A D V E R T I S T I N G R E V E N UE S Contribution of digital advertising revenues1 (%) % 31.1% 27.6% 25.2% 22.1% 17.2% 13.2% 2011 2012 2013 2014 2015 2016 5 Note 1: including advertising and e-commerce revenues. 2016 Results
Slide 6: Faster migration to digital at national press
FASTER MIGRATION TO DIGITAL AT NATIONAL PRESS National vs local advertising1 National advertising1: Print vs Digital CAGR2 31.4% 2013-2016 50.1% Offline -8.3% €159.5m €168.9m 68.6% 49.9% CAGR2 Online 19.1% 2013-2016 2013 2016 Total 2.0% National 2.0% Offline Online 52.1% 52.1% Local 1.9% Total 1.9%
Slide 7: Digital is a strategic pillar
DIGITAL IS A STRATEGIC PILLAR Maximize advertising revenues E-commerce potential Roll out Premium models Consolidate Classifieds Facebook Instant Articles Explore new initiatives + new launches in 2017 Data management analytics and user understanding (Data) 7 2016 Results
Slide 8: Stabilisation of regional press margins
STABILISATION OF REGIONAL PRESS MARGINS Annual performance of comparable EBITDA1 at Regional1, 2011-2016 €m 52.3 42.0 38.9 37.6 39.5 38.9 42.6 34.1 32.3 31.6 33.9 35.5 2011 2012 2013 2014 2015 2016 Regionales brands Local printing plants Rest Total Regional 8 Note 1: Not including personnel adjustme
Slide 9: ABC back to profitability
ABC BACK TO PROFITABILITY Annual performance of comparable EBITDA1 at ABC 2011-2016 €m 7.8 5.9 2.0 2.0 0.1 3.6 -2.4 -4.3 -2.4 -7.1 -5.1 -10.1 2011 2012 2013 2014 2015 2016 ABC brand ABC printing plant Total ABC 9 Note 1: Not including personnel adjustment measures and one-offs. 2016 Results
Slide 10: EBITDA growth thanks to cost reductions
E B I T D A G R O WT H T H A N K S T O C O S T R E D UC T I O N S Performance of comparable EBITDA, VOCENTO 2011-2016 Variation 2016 vs 2011 except for comparable EBITDA(€m) VOC brands increase comparable EBITDA by €+6.6m 28.6 - 6.1 5.5 52.2 40.7 -50.3 12.8 6.0 15.1 Comp. EBITDA Ad revenues (2) Marg
Slide 11: Generation of free cash flow and deleveraging
GENERATION OF FREE CASH FLOW AND DELEVERAGING Performance of net financial debt and cash flow at VOCENTO 2011-2016 €m Cumulative 149.3 variation 138.7 142.9 2011-2016 125.9 108.8 NFD -72.2 3.4x NFD/EBITDA -2.1x 66.4 Ordinary cash 26.3 Non-ordinary cash 34.1 1.3x 8.6 27.4 21.0 -4.9 2.0 4.3 -6.3 14.8
Slide 12: Table of Contents
TABLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN 2016 3. OUTLOOK FOR 2017 12 2016 Results
Slide 13: Main achievements in 2016
MAIN ACHIEVEMENTS IN 2016 REVENUES • Advertising revenues down -2.2% • Digital makes increased contribution, 31.1% of total advertising revenues • Continued improvement in circulation margin (2016 €+0.1m) despite fall in Revenues from circulation sales -5.8% • Diversified customer base: 5.2% of tota
Slide 14: Advertising market underperforms
A D V E R T I S I N G M A R K E T UN D E R P E R F O R M S VOC increases offline market share, with lower online growth 2016 Annual variation % 14.0% 12.4% 2.9% -2.2% -7.1% -6.6% Total Offline (1) Online (2) Market VOCENTO 2016 advertising weakened over the course of the year Annual variation % 4.8%
Slide 15: Cost measures deliver EBITDA growth
C O S T S M E A S UR E S D E L I V E R E B I T D A G R O WT H Performance of comparable EBITDA, VOCENTO 2015-2016 Variation 2016 vs 2015 except for comparable EBITDA (€m) €-1.5m 5.8 - 1.8 - - 0.5 52.2 50.2 - 3.6 2.0 0.1 0.1 Comp. EBITDA Ad revenues Margin on Add-ons Comp. EBITDA Personnel Margin at
Slide 16: Net profit impacted by tax reform and sale of ABC building
N E T P R O F I T I M P A C T E D B Y T A X R E F O R M A N D S A L E O F A B C B UI L D I N G Extraordinary effects Simplified P&L 2016 Without impact of tax reform IFRS Reported -RDL 3/2016- (Data in €m) and sale of the ABC building • Royal Decree 3/2016. Negative impact (non-cash) of €83m in taxe
Slide 17: Reduction of net financial debt
R E D UC T I O N O F N E T F I N A N C I A L D E B T < 1 . 3 x E B I T D A Change to net financial debt at VOCENTO €m Ordinary cash generated €21.4m NFD/comparable NFD/comparable EBITDA 1.3x EBITDA 2.2x 108.8 52.2 -11.3 87.4 35.0 -7.3 66.4 -12.3 -10.3 -3.8 NFD 2015 Comp. Working capital Capex Financ
Slide 18: Table of Contents
TABLE OF CONTENTS 1. MOVING FORWARD WITH THE TRANSFORMATION 2. BUSINESS PERFORMANCE IN 2016 3. OUTLOOK FOR 2017 18 2016 Results
Slide 19: Strategic principles and targets at Vocento 2017
STRATEGIC PRINCIPLES AND TARGETS AT VOCENTO 2017 Areas for action Diversification of revenues Cost reductions Efficiency in cash flow Optimization of traditional New business lines business structure (close €c.12m): Continued control of capex Driving digital advertising Efficiency Plan Investment vi
Slide 20: Business Appendix
B US I N E S S A P P E N D I X 20 2016 Results
Slide 21: Extending our leadership
E X T E N D I N G O UR L E A D E R S H I P Share of ordinary circulation 2011 Share of ordinary circulation 2016 % % 21.6% 26.2% 24.8% 26.6% 3.6% 5.5% 4.1% 13.7% 6.8% 15.8% 5.3% 10.3% 7.1% 10.2% 11.3% 7.2% 21 Source: OJD 2016 Results
Slide 22: ABC consolidates #2 position in Madrid
ABC CONSOLIDATES #2 POSITION IN MADRID ABC ordinary circulation market share in Comunidad de Madrid % 36.8% 36.5% 36.4% 36.8% 36.4% 35.6% Closes gap vs El País to 11,236 copies 27.3% 27.1% 26.6% 25.6% 26.5% 24.7% +4.6 p.p. market 24.6% share since 2011 23.1% 23.3% 23.4% 21.9% 22.5% 14.6% 15.4% 14.0%
Slide 23: Maintaining profitability of regional press
MAINTAINING PROFITABILITY OF REGIONAL PRESS Comparable EBITDA performance of regional press 2015-2016 Variation 2016 vs 2015 except comparable EBITDA( €m) and comparable EBITDA margin (%) 39.5 38.9 - 0.8 - 1.1 - 0.3 1.6 Comp. EBITDA (1)2015 Advertising (2) Circulation margin Add-on margin Others (3)
Slide 24: ABC strengthens position in Madrid and online
ABC STRENGTHENS POSITION IN MADRID AND ONLINE Ordinary circulation in Madrid 2015-2016 Total online readership Share (%) Million unique users 12.3 14.3 14.7 December 2016 8% -2% -12% 15.4% 22.5% 26.5% 35.6% December 2016 2015 11.3 14.7 16.6 Exclusive mobile readership Million unique users 2015 8.2 9
Slide 25: ABC: increase in EBITDA and profitability
A B C : I N C R E A S E I N E B I T D A A N D P R O F I TA B I L I TY Comparable EBITDA performance of ABC 2015-2016 Variation 2016 vs 2015 except comparable EBITDA (€m) Positive comparable EBIT (€2.7m) for 2nd consecutive year +1.9m 2.0 7.8 5.9 -3.5 2.2 1.2 Comp. EBITDA (1) 2015 Advertising Circula
Slide 26: Audiovisual: stable profitability
A UD I O V I S UA L : S T A B L E P R O F I T A B I L I TY Comparable EBITDA performance at Audiovisual Variation 2016 vs 2015 except comparable EBITDA (€m) 12.6 0.5 -0.0 -0.4 12.7 Comp. EBITDA 2015 DTT Radio Content Comp. EBITDA 2016 26 2016 Results
Slide 27: Growth at classifieds
G R O WT H A T C L A S S I F I E D S Advertising performance 2015-2016 Comparable EBITDA1 2015-2016 Advertising revenues (€m) and variation (%) €m +16.2% 16.6 2.1 €+1.2m 14.3 0.8 2015 2016 2015 2016 27 Note 1: excluding personnel adjustment measures 2015 €-0.2m and 2016 €-0.1m 2016 Results
Slide 28: Financial Appendix
FINANCIAL APPENDIX 28 2016 Results
Slide 29: Consolidated P&L
CONSOLIDATED P&L 2016 2016 2015 Var% 2015 Var% IFRS comp. (Data in €m) Total revenue 448.8 467.6 -4.0% 448.8 467.6 -4.0% Operating Expenses ex non recurring costs1 -396.5 -417.5 5.0% -396.5 -417.5 5.0% Comparable EBITDA1 52.2 50.2 4.1% 52.2 50.2 4.1% Personnel adjustment measures and one-offs -10.1
Slide 30: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET IFRS 2016 2015 (Data in €m) Non Current Assets 363.8 478.5 Current Assets 134.9 135.1 Assets held for sale 0.2 1.5 TOTAL ASSETS 498.9 615.1 EQUITY 255.1 318.7 TOTAL LIABILITIES 243.8 296.5 Financial debt 86.1 125.1 Non current liabilities 53.6 54.0 Other non-current payabl
Slide 31: Variation in net financial debt 2016
VARIATION IN NET FINANCIAL DEBT 2016 IFRS 2016 2015 (Data in €m) Comparable EBITDA 52.2 50.2 Variation in working capital -12.3 -3.2 Capex -7.3 -7.4 Other items1 -1.1 -2.3 Cash flow from operating activities 31.6 37.3 Interests and dividends received 0.2 0.9 Interests and dividends paid2 -10.4 -10.8
Slide 32: 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 Audiovisual Classified €m €m €m Total Total Total Total Total Total 407.8 386.7 47.4 48.6 15.4 17.8 29.9 28.8 13.6 15.4 110.1 4.1 4.1 17.8 98.8 30.1 29.4 15.4 286.5 276.4 -18.7 -17.2 -0.4 -0.3 2015 2016 2015 2016 2015 2016 Classified Regional ABC
Slide 33: 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 Audiovisual Classified €m €m €m Total Total Total Total Total Total 46.6 47.0 12.6 12.7 0.8 2.1 1.2 0.4 5.9 7.8 4.7 4.3 2.6 2.6 39.5 38.9 2.1 5.3 5.8 0.8 2015 2016 2015 2016 2015 2016 Regional ABC Supp. and Magazines TDT Radio C
Slide 34: 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 9M16 results. The 2016 Results Report includes the definition and calculation methods for the APMs for the full ye
Slide 35: 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
Slide 36: 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 36 2016 Results