Atlanta Braves Holdings, Inc. - Series A · NASDAQ:BATRA
Atlanta Braves Holdings, Inc. - Series A — Atlanta Braves Holdings — Investor Day (November 2021)
60 slides from Atlanta Braves Holdings, Inc. - Series A's investor day presentation, Nov 18, 2021
Slide 1: 2021 Investor Day
2021 Investor Day NOVEMBER 18, 2021
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”), Liberty TripAdvisor Holdings, Inc. (“Liberty TripAdvisor”) and Libert
Slide 3: Disclaimers (cont.)
Disclaimers (cont.) FORWARD-LOOKING STATEMENTS (CONT.) These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, changes in market acceptance of new pro
Slide 4: Disclaimers (cont.)
Disclaimers (cont.) INDUSTRY INFORMATION Certain information included herein concerning Liberty Media’s, Liberty Broadband’s and Liberty TripAdvisor’s respective businesses and the related markets or industry position or prospects, as well as industry or market data and other statistical data regard
Slide 5: Liberty's Back…Alright!
Liberty’s Back…Alright! GREG MAFFEI – PRESIDENT & CEO
Slide 6: Highlights of This Season…
Highlights of This Season… • Jennifer Witz assumed role of CEO • Stefano Domenicali assumed role of CEO • Won World Series for first time since 1995 • Ownership of SIRI now over 80%, receive • Successfully managed 22-race calendar after entering All-Star break at 44-45 distributions tax-free • Hoste
Slide 7: Everyone is Talking About Supply…
Everyone is Talking About Supply… 7
Slide 8: …We've Got Demand
…We’ve Got Demand • #2 in home game attendance in 2021 • All-time F1 record of 400k fans achieved at • 83% of fans held tickets for postponed • Sold 2.3m regular season tickets shows(1) US GP • Record setting pace in online merch. sales • 2022 pipeline up double digits vs. 2019 • Record 23 race cale
Slide 9: F1 US Growth Strategy Paying Off
F1 US Growth Strategy Paying Off • US GP saw record fan count and engaging experiences • 400k attendees over weekend (+52% vs. 2018) • About two-thirds(1) of fans attending first F1 race, almost double vs. 2019 • 35k+ passengers passed through airport security day after race, Austin airport's busies
Slide 10: Substantial Cash on FWON Balance Sheet
Substantial Cash on FWON Balance Sheet CONVERT ABOUT 60% OIBDA TO LFCF FWON CASH AND MARKETABLE SECURITIES $2.4B AS OF 9/30 1 2 3 4 Invest in Share Potential Proactive Business Repos Investments Debt • Augmenting technical and content capabilities • Repurchased 1m FWONA shares for • Committed $250m
Slide 11: We Crossed 80% At SiriusXM (Finally)
We Crossed 80% At SiriusXM (Finally) • On 11/3, exchanged 5.3m LSXMA shares for 43.7m SIRI shares with public shareholder • Market-based exchange price of $50.02 per LSXMA share with no premium paid by parties • Structured to make SIRI an ATB • LSXM’s ownership of SIRI now 80.2%(1) • Liberty owns 3,
Slide 12: But Wait, There's More
But Wait, There’s More SIRIUSXM UPDATES LIBERTY SIRIUSXM UPDATES • SiriusXM record Q3-21 results • Continued to buy back shares… Bought 8.5m • Record high 32m self-pay subs and 616k net adds LSXMA/K shares at avg. price of $45.13 for $382m • ARPU +4.9% vs. PY and +1.9% vs. PQ total cash through 10/3
Slide 13: Continue to Take Advantage of Discount at LBRD
Continue to Take Advantage of Discount at LBRD LBRD NAV ACCRETION IN BUYBACKS THROUGH 10/31 EXCESS OF CHTR APPRECIATION 30% LBRD NAV CHTR • NAV discount remains wide, creating attractive return 25% potential 20% Current • LBRD selling into CHTR’s buyback monthly to Spread: 2% maintain 26% fully dilu
Slide 14: Reiterating Charter's Competitive Positioning
Reiterating Charter’s Competitive Positioning Since our last in-person Investor Day (i.e. Pre-Covid)… Broadband Subscribers LTM Adj. EBITDA LTM Free-Cash-Flow $20,245 $8,478 29,899 $16,490 26,325 $3,913 Q3 2019 Q3 2021 Q3 2019 Q3 2021 Q3 2019 Q3 2021 Charter has a long runway ahead… • Flexible, cost
Slide 15: Mobile Adds Another Leg to Stool
Mobile Adds Another Leg to Stool MOBILE •Broadband + Mobile is new emerging bundle • 2m customers (>3m lines) taking bundle since Spectrum Mobile launch just 3 years ago • Cable has captured ~30%(1) of wireless industry net adds over period •Poised to move up penetration curve with improving unit ec
Slide 16: Braves Year in Review
Braves Year in Review BRAVES WON WORLD SERIES after being below 0.500 at the All-Star break • Sold 2.3m regular season tickets in 2021 • #2 in MLB average attendance at 29k • Fully opened capacity on May 7th • Incredible Battery traffic, especially during postseason • Total traffic in October of 1.2
Slide 17: Tripadvisor Resilience and Growth Potential
Tripadvisor Resilience and Growth Potential CONFIDENT IN TRIP’S BASE BUSINESS Expected 100% Recovery(1) • Improved cost structure: Reduced headcount and discretionary Leisure Travel costs at beginning of pandemic will largely retain through recovery 120 • $200m+ discretionary cost savings in 2020 vs
Slide 18: Liberty's Portfolio Approach to ESG
Liberty’s Portfolio Approach to ESG Our largest impact and greatest value can be unlocked through a coordinated portfolio approach to Environmental, Social and Governance issues (“ESG”) ESG Oversight and Support Leverage best practices, shared resources and long-term owner’s mentality across Liberty
Slide 19: Announcing the Liberty Climate Initiative
Announcing the Liberty Climate Initiative AT LIBERTY, WE ARE COMMITTING TO… • Carbon neutral on scope 1 and 2 emissions by 2030 at corporate level • Ensuring all portfolio companies publicly report on carbon footprints • Encouraging portfolio companies toward emission reductions and low carbon strat
Slide 20: History of Strong Returns
History of Strong Returns COMPOSITE LMC (1) • Value per share up almost 24-fold since issuance in May 2006 Composite return +75% since March 2020 • S&P +9% and NASDAQ +13% annually over same time period $2,000 $1,800 LMC Composite Price per Share $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FW
Slide 21: Brian Wendling
Brian Wendling CHIEF ACCOUNTING OFFICER & PRINCIPAL FINANCIAL OFFICER
Slide 22: From Spring 2020 to Today
From Spring 2020 to Today 1 Ensured liquidity across portfolio companies 2 Fortified balance sheets and secured covenant relief …BUT THIS IS OLD NEWS. SINCE LAST YEAR’S INVESTOR DAY… 3 Companies adapted & rebounded strongly in 2021 4 De-levered and have stronger balance sheets today 22
Slide 23: Formula 1 Returned with Strong 2021
Formula 1 Returned with Strong 2021 LIQUIDITY NEVER IN DOUBT Total Liquidity ($m) Minimum Liquidity Threshold ($m) $1,085 $1,037 $929 $500m $824 $765 undrawn $639 capacity + $585m cash balance $108 $200 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 …AND DE-LEVERED NEAR TARGET RANGE Leverage Covenant Thr
Slide 24: Impressive OIBDA to FCF Conversion
Impressive OIBDA to FCF Conversion CONSISTENTLY CONVERT HIGH AMOUNTS OF FCF 2016-2021E • Attractive margins and low capital (1) F1 OpCo - 5-yr. Avg. (excl. 2020) intensity F1 Adj. OIBDA 100% • Largest cost item (teams’ Prize Working Capital 1% Material Race Promotion Fees Timing Impact 3% Fund) now
Slide 25: Healthy Braves Balance Sheet
Healthy Braves Balance Sheet MAINTAINING STRONG CASH BALANCE… …AND MANAGING DEBT MATURITIES ($ in millions) ($ in millions) $230 $217 $40 $207 $212 $190 $30 $185 $73 $45 $83 $158 $67 $140 $78 Intend to replace $38 $107 construction loans $100 $83 with term debt $70 $34 $177 $83 $134 $47 $95 $48 $73
Slide 26: Solid Asset Coverage at LSXM
Solid Asset Coverage at LSXM LIQUIDITY & PUBLIC SECURITIES ($B) Encumbered SIRI shares $7.2 LYV Encumbered Shares 2020 Investor Day: $2.9 $14.6b Unencumbered Public Equities Total 2.0b SIRI shares $28.7 Public Equities(1) 46.0m LYV shares 3.2b SIRI shares 7.0m IHRT shares & 69.6m LYV shares warrants
Slide 27: Optimizing GCI's Balance Sheet
Optimizing GCI’s Balance Sheet PROVIDING AMPLE RUNWAY • Strong operating performance and credit rating upgrades from B2 to B1 at Moody’s and B to B+ at S&P • Paid down $278m on credit facility YTD 9/30 • In October 2021, refinanced Term Loan B and credit facility • New Term Loan A with $250m funded
Slide 28: Did Some TRIP Planning
Did Some TRIP Planning MARCH BALANCE SHEET ACTIONS BENEFICIAL TO LONG TERM STRUCTURE Repurchased 42% of Certares preferred shares for $373m(1) • $281m cash from portion of proceeds of concurrently issued exchangeable bonds • $330m of 0.50% TRIP exchangeable bonds due 2051 • $92m from delivery of 1.7
Slide 29: Finally, an LBRD Update from our Tax Team
Finally, an LBRD Update from our Tax Team TAX CONSIDERATIONS RELATED TO CHTR SHARE SALES • Sale proceeds treated as dividend income for tax purposes • Dividends eligible for 65% dividends-received-deduction (“DRD”) • Forecasted cash tax rate on 2021 share sales 5.0% - 7.0% • Higher rate expected in
Slide 30: Appendix
(QB (eeers) Appendix
Slide 31: LMC Convertible / Exchangeable Debt Cheat Sheet
LMC Convertible / Exchangeable Debt Cheat Sheet 1.0% Convert. Notes 1.375% Convert. Notes 2.25% Exch. Debent. 0.50% Exch. Debent. 2.125% Exch. Debent. 2.75% Exch. Debent. Description Issuing Entity Liberty Media Corporation Attributed Tracking Formula One Group Liberty SiriusXM Group Liberty SiriusX
Slide 32: LSXM is Hedged on 1.375% Cash Convertible Notes
LSXM is Hedged on 1.375%Cash Convertible Notes • Attributed to Liberty SiriusXM Group • $1b Convertible Senior Notes • 1.375% semi-annual coupon • Final maturity 2023 • Cash settle • Basket of securities per $1,000 notes includes: • 21.4296 shares of LSXMA • Based on 1.0163 LSXMA per basket • 5.2715
Slide 33: Successful Year of Commercial Agreements for F1
Successful Year of Commercial Agreements for F1 RESULTS OF F1 NIELSEN FAN SURVEY: 167K RESPONSES, +13% VS. 2017 • DHL: Official Logistics Partner • Crypto.com: inaugural global • Nordic Entertainment Group • Miami: new race in 2022 AVERAGE FAN partner of Sprint series streaming service in • 10-year
Slide 34: F1 Financials – Revenue Recognition
F1 Financials – Revenue Recognition CALENDAR AND TIMING OF RACES HAS SIGNIFICANT IMPACT ON QUARTERLY REPORTED RESULTS • Promotion revenue recognized on day of each race • Broadcast revenue recognized pro-rata across race calendar, with some variation due to FX movements • Sponsorship revenue: • Race
Slide 35: F1 Financials – Cost Recognition
F1 Financials – Cost Recognition • Team payments • Expense recognized pro-rata across race calendar • Cash payments: • Total prize fund paid in fairly even installments across months of March – November with “true-up” points • Final true-up balance paid post-season (January & February under 2021 Con
Slide 36: F1 Tax Considerations
F1 Tax Considerations • F1 expects to be UK taxpayer in 2021 and future years • F1 cash generating entities are UK based • UK interest expense deductions are limited to 30% of UK EBITDA • Estimated future cash taxes for F1 (primarily UK) expected to be single digit percentage of adjusted OIBDA (as r
Slide 37: Understanding Normalized F1 FX Exposure
Understanding Normalized F1 FX Exposure APPROXIMATE REVENUE • Roughly 80% of F1 revenue US$ denominated EXPOSURE BY CURRENCY • P&L exposed to both transactional and translational EUR AUD & CAD moves in FX 6% 1% GBP • Team payments impacted by transactional FX gains 13% and losses, thereby sharing in
Slide 38: Formula One Group Debt
Formula One Group Debt Carrying Value ($ in millions) as of 9/30/2021 Corporate Level Debt FWONK Convertible due 2023 $635 ATT Exchangeable due 2046(1) $- Other Corporate Level Debt $71 Total FWON Corporate Debt $706 F1 First Lien Term Loan B due 2024 $2,902 Total FWON Debt $3,608 (1) On 10/5/21, re
Slide 39: Liberty SiriusXM Group Debt
Liberty SiriusXM Group Debt Carrying Value ($ in millions) as of 9/30/2021 Corporate Level Debt LMC 1.375% Convertible Bond due 2023 $1,369 SIRI 2.125% Exchangeable due 2048 $414 SIRI 2.75% Exchangeable due 2049 $627 LYV 2.25% Exchangeable due 2048(1) $532 LYV 0.50% Exchangeable due 2050 $1,111 SIRI
Slide 40: Braves Group Debt
Braves Group Debt COVENANTS WAIVED UNTIL Q2-22 (1) As of 9/30/21 Total Capacity Outstanding Maturity ($ in millions) Non-recourse to Braves Holdings Secured by various revenue Team Operating Debt streams, including: • Naming Rights MLB Leaguewide Credit Facility $100 $100 2026 • Suite and Club Seat
Slide 41: Composite LMC – It All Adds Up
Composite LMC – It All Adds Up • 5/9/06: LCAPA (“LMC”) tracking stock issued Composite LMC • 3/3/08: LMC issues LMDIA/B 4-for-1 FWONA 14 LSTZA tracker 154 • 11/19/09: DTV spun from LMDIA 1-for-1; remaining assets become LSTZA on a 0.10-to-1 basis DTV after 1 year: $42.15 x 4 169 Earnings on $168.60
Slide 42: Footnotes and Other Sourcing Information
Footnotes and Other Sourcing Information ALL MARKET DATA AS OF 11/9/21 AND BALANCE SHEET DATA AS OF 9/30/21 UNLESS OTHERWISE NOTED. • Slide 6 • (1) Average SIRI look through price as of 11/16/21. • (2) LMAC price data as of 11/16/21. • Slide 8 • (1) As of Live Nation Q1-21 earnings call. • (2) Sourc
Slide 43: Investor Day 2021
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Slide 44: Betting on the Atlanta Braves
BETTING ON THE ATLANTA BRAVES § Perennial strong on-field performance § Consistent financial performance with top-line growth § Success in building new revenue streams § Innovative approach to core revenues with solid growth opportunities § Promising short and long-term value creation 2
Slide 45: The Comeback
THE COMEBACK § Opened to 100% capacity in May and was 2nd across MLB in total attendance § High level of data-driven fan engagement marketing strategy during 2020 and leading into 2021 § Collaborative approach with sponsors to “make good” in 2020 and expand relationship in 2021 § The Battery Atlanta
Slide 46: Tickets & Attendance
KEY PERFORMANCE INDICATORS TICKETS & ATTENDANCE 2017 2018 2019 2021 Avg Ticket Price $34.94 $35.40 $36.67 $44.91 Avg Paid Attendance 30,900 31,600 32,800 29,500 Avg Gate Receipts ($M) $1.08 $1.12 $1.14 $1.32 Premium Ticket Revenue ($M) $39.60 $39.10 $41.00 $36.10 Consistent fan support – over 25 yea
Slide 47: Corporate Support
CORPORATE SUPPORT § The Braves brand continues market dominance and has support from key segments, including: § Banking § Home Improvement § Airline § Telecommunications 5% CAGR § Beer § Auto § Soft Drink § Gaming § 94% of contracted revenue is locked up in 5+ year deals, 42 deals > $1M in value § 5
Slide 48: Broadcast
BROADCAST Sinclair now locked in at higher per game revenues through 2027 6 *Local Broadcast revenues represents cash received – revenue recognized differs slightly
Slide 49: The Battery Atlanta
PHASE 2 NOW COMPLETE 7 THE BATTERY ATLANTA
Slide 50: Mixed Use Update
MIXED USE UPDATE PHASE I LEASABLE SPACE SF % LEASED Retail/Dining 237,000 82% Office 322,000 100% Entertainment 53,000 100% Hotel 220,000 TOTAL PHASE I 832,000 PHASE II LEASABLE SPACE SF % LEASED Retail/Dining 16,000 84% Office 339,000 68% Entertainment 51,000 100% Hotel 71,000 TOTAL PHASE II 477,00
Slide 51: 2021 Results
($M) Nine Months Nine Months Ended Ended YOY 9/30/2021 9/30/2020 Change 2021 RESULTS Baseball Revenue $ 433 $ 119 264% Development Revenue 33 24 38% Total Revenue 466 143 226% Baseball Expenses 364 179 103% Development Expenses 10 9 11% Total Expenses 374 188 99% Baseball Adjusted OIBDA 69 (60) NM D
Slide 52: Future Growth Opportunities
FUTURE GROWTH OPPORTUNITIES 10
Slide 53: Sports Betting
SPORTS BETTING Bb 6 The State Of The States October 2021 * Sports Betting Live * Sports Betting Law Enacted * Legislation Pending
Slide 54: Data Driven Strategy
Braves/MLB Data Timeline Nov 2021) PES Analytics Data Consumer Consumer CRM Function Warehouse Salesforce Data! Loyalty Implemented Added Constructed Implemented Platfori Platform ke ek mi | Fe | a i | 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2010 2025 ADALWULS N3AAIYC V
Slide 55: Investor Day 2021
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Slide 56: Appendix
APPENDIX 14
Slide 57: 2021 Results
APPENDIX 2021 RESULTS 2021 ADJUSTED OIBDA to OPERATING INCOME ($M) YTD YTD 9/30/2021 9/30/2020 Adjusted OIBDA $ 92 $ (45) Stock-based Compensation (6) 11 Depreciation/Amortization (56) (54) Operating Income $ 30 $ (88) 15
Slide 58: 2021 Results
APPENDIX BRAVES DEVELOPMENT COMPANY – 2021 NET OPERATING INCOME Phase I Current Occupancy % Sep 2021 YTD NOI2 % of Revenue Stabilized NOI3 % of Revenue 2021 RESULTS Office 97% $ 6.8 76% $ 11.4 86% Retail 88% 4.0 54% 6.4 53% Entertainment 100% 1.0 68% 2.2 82% Total Phase I NOI $ 11.8 $ 20.0 Hotel I1
Slide 59: 2021 Results
APPENDIX 2021 RESULTS 2021 NET OPERATING INCOME RECONCILIATION to GAAP OPERATING INCOME YTD ($M) 9/30/2021 Net Operating Income-Development (1) $ 18 Parking/Other 6 Ownership expenses (1) Stock-based Compensation (2) (1) Depreciation/Amortization (13) Operating Income - Development $ 9 NOTES: (1) Se
Slide 60: 2021 Results
APPENDIX BRAVES DEVELOPMENT COMPANY – LEASABLE SQUARE FOOTAGE SF 000s Keys 2021 RESULTS Office 322 Retail 237 Entertainment 53 Hotel 220 264 Phase 1 832 Office - TK (1) 302 Office - Other 37 Retail 16 Entertainment 51 Hotel 71 142 Phase 2 477 Total (2) 1,309 406 NOTES: (1) Does not include the Innov
Atlanta Braves Holdings — Investor Day (November 2021) on 6ix