Live Nation Entertainment, Inc. · NYSE:LYV
Live Nation Entertainment — Thomas Weisel Partners Consumer Conference 2006
23 slides from Live Nation Entertainment's conference presentation, Sep 26, 2006
Slide 1: Transforming Live Nation
Transforming Live Nation Investor Presentation Thomas Weisel Partners Consumer Conference 2006 September 26, 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements made in this presentation may be forward-looking statements involving known and unknown risks and uncertainties that may cause the actual results or performance of the company to be materially different from those implied by such forward-looking statemen
Slide 3: Live Nation is the Premier Global Live Event Company
www.livenation.com www.broadwayacrossamerica ..com www.supercrossonline.com www.monsterjamonline.com Events Venues & Sponsorship Ticketing, Online & Mobile Live Nation is the Premier Global Live Event Company 29,000 events with 60MM attendees 153 venues 1.4MM web visitors/mo. 24MM fan database Note:
Slide 4: Unmatched and Unreplicatable Asset Portfolio
Unmatched and Unreplicatable Asset Portfolio MASSIVE ATTENDANCE LARGEST PROMOTER OF LIVE MUSIC A LEADING VENUE MANAGER Number of Attendees (MM) Number of Tickets Sold (in 000s) Number of Venues Source: Pollstar Online Source: Company websites Source: Company websites GROWING ONLINE PRESENCE SINCE 6/
Slide 5: Transforming Our Business
Transforming Our Business 1980-1998 1998-2005 2006/2007 Local Promoter Business Scaling Our Business SFX/CCE Consolidation of Live Focus Local Promoter Amps Music Theatre Venues Sports Motorsports Exhibitions Shedding Broad Live Event Focus and Shaping to Live Music Focus on Live Music 2007/08/09 Tr
Slide 6: Model Transformation
Model Transformation Model Transformation Branded Vertically Integrated Live Artist Manager/ Agent Venue Tix Agency Store Front Database Promoter Avid Fan Avid Fan Sponsor - -Tix - -Merchandise - -Live Recording - -Fan Club - -VIP - -VIP - -VIP - -VIP - -VIP - -VIP
Slide 7: Industry Trends and Live Nation Challenges
Industry Trends and Live Nation Challenges INDUSTRY TRENDS LIVE NATION CHALLENGES Recorded music industry is in flux Tours are more profitable for artists than record sales Artists keep 70% of a ticket sale vs. 16% of an album sale Declining number of artists that can fill larger venues More competi
Slide 8: The First Nine Months: Focus, Consolidation and Investment
The First Nine Months: Focus, Consolidation and Investment ESTABLISHED A MISSION / VISION Focus on core music and complementary businesses Eliminated 10% of original workforce across all divisions CREATED A PUBLIC COMPANY CORPORATE HQ Hired, promoted and/or relocated approximately 50 executives Reor
Slide 9: The First Nine Months: Focus, Consolidation and Investment (cont'd)
The First Nine Months: Focus, Consolidation and Investment (cont'd) ESTABLISHED A MISSION / VISION 1.4MM uniques in August for livenation.com (launched 6/06) ANNOUNCED ACQUISITIONS TO EXPAND CORE BUSINESS Sold non-core businesses Vegas productions: Planet Hollywood and Phantom (49.9%) Sports: Tellem
Slide 10: The Next Twenty-Four Months...
The Next Twenty-Four Months... ESTABLISHED A MISSION / VISION BUILD FIX EXPAND Exit remaining non-core businesses Focus on largest / most profitable markets Increase food & beverage per head sales Improve economics of key contracts in 2009 (Ticketmaster, Aramark) Build live music venue/festival plat
Slide 11: The Live Nation - Fan Relationship
The Live Nation - Fan Relationship AVID FAN Buy fan club member- ship $40/club Buy parking and food and beverage $15/show Buy live recording of concert $15/CD Download mobile live events $2/event SERVICES Buy tickets $60/show Receive e- mails from our database on shows NA DATABASE Buy concert t-shir
Slide 12: Global Venue / Promoter Strategy - Mix and City
Global Venue / Promoter Strategy - Mix and City Source: International Federation of the Phonographic Industry for 2005 Festival Sites - 2 (10 - 20k attendees) 1% Amphitheaters - 49 (5 - 30k attendees) 32% Arenas - 7 (5 - 20k attendees) 5% Music Theaters - 30 (Up to 5k attendees) 20% Music Clubs - 24
Slide 13: Food and Beverage Strategy
Food and Beverage Strategy Live Nation's goal is to increase food and beverage sold per patron Improve speed of service: Value pricing: $5.00 beer, $2.50 water, $6.00 value meal Even dollar pricing: All prices end in $0.00 or $0.50 Separate lines for credit card transactions Expand food and beverage
Slide 14: Online Strategy
Online Strategy Live Nation's goal is to be a leading online live music destination site Significant demand for live content online Almost 50% broadband penetration in the U.S. Increasing popularity of online video viewership with live performance a key factor Live Nation website to offer: Concert i
Slide 15: Top-Line Growth
Top-Line Growth 2006 2010 Expand Venues Expand Int'l New Live Products Web Drivers that we believe will extend our business
Slide 16: Financial Overview
FINANCIAL OVERVIEW
Slide 17: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures. A reconciliation of each of these non-GAAP financial measures to its most directly comparable GAAP measure(s) is available on the investor relations portion of the company's website under the tab, "Fin
Slide 18: Revenue and Adjusted EBITDA Contribution and Margin
Revenue and Adjusted EBITDA Contribution and Margin BY BUSINESS SEGMENT BY GEOGRAPHY North America 69% International 31% 2005 REVENUE International operations generally generate higher margins than North American operations Note: EBITDA adjusted for costs associated with the reorganization and spin-
Slide 19: Cash Cycle, Free Cash Balance and Pro Forma FCF Calculation
Cash Cycle, Free Cash Balance and Pro Forma FCF Calculation FREE CASH BALANCE CASH CYCLE TOUR CONFIRMED TICKETS ON SALE CONCERT Cash Flow Artist Deposit Tour Pre-Production Corporate Sponsorship Marketing Ticketing Sales Concessions & Merchandise Artist Settlement Other Show Costs - - - - + - - + +
Slide 20: Capitalization as of June 30, 2006
Capitalization as of June 30, 2006 ($ in millions) Note: EBITDA adjusted for costs associated with the reorganization and spin-off incurred in 2005.
Slide 21: Appendix
APPENDIX
Slide 22: Reconciliation of Adjusted EBITDA to Operating Income (loss)
Reconciliation of Adjusted EBITDA to Operating Income (loss) (unaudited)
Slide 23: Reconciliation of Adjusted EBITDA to Operating Income (loss)
Reconciliation of Adjusted EBITDA to Operating Income (loss) (unaudited) Definition and Use of Non-GAAP Measure Adjusted EBITDA is a non-GAAP financial measure that the company defines as operating income (loss) before depreciation, amortization, loss (gain) on sale of operating assets and non-cash
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