T4f Entretenimento S.a. · BMFBOVESPA:SHOW3
T4f Entretenimento — Investor Presentation (September 2012)
28 slides from T4f Entretenimento's investor presentation, September 2012
Slide 1: Corporate Presentation August / September 2012
Corporate Presentation August / September 2012 0
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about T4F Entretenimento S.A (“T4F”) as of the date of the presentation. It is information in summary form and does not purport to be complete. This material contains confidential information regarding and may n
Slide 3: 1. A Strategic View of our Industry
1. A Strategic View of our Industry 2
Slide 4: A strategic View of our Industry
A strategic View of our Industry A favorable macroeconomic environment in South America and structural changes in the global media and live entertainment industry are the foundations of T4F’s sustainable growth 5 out of the 10 largest GDP growths in emerging economies are in South America Peru Brazi
Slide 5: Very favorable environment for the live entertainment industry
A strategic View of our Industry Very favorable environment for the live entertainment industry Wide range of quality content for tours in South America The region is definitely in the international route of the major artists The live entertainment industry in South America keeps its robust grow
Slide 6: 2. Company Overview
1. Company 2. DescriçãoOverview da Companhia 5
Slide 7: Shareholding Structure
Shareholding Structure Shareholding Structure Stake Fernando Luiz FA Comércio e Shareholders Direct + Indirect CIE International Alterio Participações 49.9% 50.1% 8.4% Fernando Luiz Alterio 31.7% CIE International 9.7% 27.5% 5.5% Gávea Investimentos 6.8% Shareholders’ Agreement 48.2% 6.8% 51.8% Gáve
Slide 8: Company Overview
Company Overview T4F is the leading live / out-of-home entertainment promoter in South America with a diversified and verticalized business model Leading company High Growth and Our Presence Unique Industry Diversified and in live entertainment Strong Cash (Net Revenue 2011) Knowledge Verticalized M
Slide 9: A Diversified Portfolio of Entertainment
A Diversified Portfolio of Entertainment Live Music Sport Events Theatrical Production Performing Arts U2 Madonna Stock Car Marcas The Addams The Phantom Cirque Du Soleil Stomp Family of the Opera Pearl Jam Roger Waters Copa Montana Mini Challenge The Lion King Cats Blue Man Group Bodies Verticaliza
Slide 10: Leadership Position in Live Entertainment Industry
Leadership Position in Live Entertainment Industry U2 Madonna 3 out of the 11 largest 3 out of the 5 largest shows of 360º World Tour shows of the tour in 2008 Coldplay Bon Jovi Promoted the 1st and 5th Promoted the 2 largest largest shows of all tours shows of the 2010 world tour Pearl Jam Guns N’
Slide 11: Leadership Position in Live Entertainment Industry
Leadership Position in Live Entertainment Industry 2006 - More than 1,450 performances - 12 cities visited 2007-2008 - More than 2.5 million tickets sold Cirque du - Quidam in Sao Paulo was Cirque du 2009-2010 Soleil Soleil’s biggest box office and the 6th 2011-2013 biggest international box office
Slide 12: 3. Investment Highlights
3. 2. Investment Highlights Tese de Investimento 11
Slide 13: Investment Case
Investment Case Attractive Compelling business Macroeconomic Live Entertainment model and Superior Environment and Robust Industry Growth Management and Consumption Growth Expertise Massive increase in Live music: Superior business model: disposable income and Touring became higher return wit
Slide 14: Positive Trends for Expenditures with Entertainment in Emerging Markets
Positive Trends for Expenditures with Entertainment in Emerging Markets… Expenditure with Entertainment as a % of the Disposable 2011E-2016E GDP Growth (1) Income vs GDP per Capita 12.0% China 56.6% R2 = 0.66 Expenditure with entertaiment as a % of disposable income India 47.0% R2 (ex Argentina) = 0
Slide 15: Boom of the Live Entertainment Industry
Boom of the Live Entertainment Industry Live music has significantly increased importance in the music industry, with touring becoming essential for artists, while recorded music revenues have been shrinking Total Recorded Music Revenues vs. Total Revenues with Top Music Acts – Sales Breakdown Ticke
Slide 16: Superior Business Model
Superior Business Model Verticalization Diversification High • 18% EBITDA margin Ability to generate Multi-content platform Margins • 31% ROIC revenues from multiple = reduced risk and sources in each event • 26% ROE Returns Note: FY2011 figures. • No revenue concentration in specific content Low Ri
Slide 17: Solid Sponsorship Revenues Flow
Solid Sponsorship Revenues Flow • Migration of marketing budgets from traditional media to below-the-line advertising (sponsorship is the largest category within) North American Annual Growth in Advertisement, Sales Promotion and Sponsorship • Content sponsorship, priority benefit, naming rights sol
Slide 18: A Diversified Platform Providing a One-Stop-Shop Marketing Solution to our Sponsors
A Diversified Platform Providing a One-Stop- Shop Marketing Solution to our Sponsors T4F is the only company that can offer a multi content range of platforms that is able to access all target audiences. Adult – Male 18 – 45 Car Sports Teen Family Live Music Adult Kids Laura Pausini Live Music Exhib
Slide 19: High Barriers of Entry
High Barriers of Entry Agreement with Cirque du Soleil valid through 2015 Guaranteed access to Partnership with Disney Theatrical Group to promote theatrical plays over the next five years premium content Exclusivity and non-compete agreement with Live Nation valid through August 2015 Family
Slide 20: 4. Growth Strategy
T4Ff 4. Growth Strategy TiME FOr FUN
Slide 21: T4F's Growth Opportunities
T4F’s Growth Opportunities T4F is the natural consolidator of the South American live entertainment industry Acquisition of Equipment, 5% Financial Lighting Sound Sources Ticketing Service, 7% Stage & Others 1 in Brazil Start-up in Peru Strong Cash Generation Acquisition Opportunities, 45%
Slide 22: Geographic Expansion
Geographic Expansion 80% of T4F’s revenues in Brazil come from SP and RJ which represent only 17% of Brazil’s GDP Main Cities in Brazil Main Cities in South America New / retrofitted Caracas Colombia Venezuela venues to Guiana Suriname explore Bogota French Guiana Ecuador Belém Manaus Fortaleza Nata
Slide 23: T4F Outdoor Venue in São Paulo
T4F Outdoor Venue in São Paulo T4F outdoor venue is expected to be a reference among renowned entertainment venues Project overview Designed to fill a gap in high-level entertainment venues in the São Paulo metropolitan area Naming rights revenues reaching up to R$ 9 million a year Flexible in
Slide 24: Outlook for 2012
Outlook for 2012 Guaranteed access to very attractive contents at the box office and sponsorships, plus many contents under negotiation Outdoor Live Music Family Entertainment and Theater Promotion of tours of top • Cirque du Soleil – 12 months of presentations in six cities in pop/rock music arti
Slide 25: 5. Operational and Financial Highlights
5. Operational and Financial Highlights 24
Slide 26: Solid Operational Performance
Solid Operational Performance Net Revenues (R$ mm) and Gross Margin (%) EBITDA (R$ mm) and EBITDA Margin (%) 18.0% 16.8% 16.7% 30.6% 29.2% 26.7% 24.4% 10.6% 110.1 596.6 609.8 100.4 569.2 95.1 434.6 46.1 2008 2009 2010 2011 2008 2009 2010 2011 Net Income (R$ mm) and Net Margin (%) Operational Cash Fl
Slide 27: Historical Financial Information (cont'd)
Historical Financial Information (cont’d) ROIC, ROE and indebtness metrics ROIC (1) ROE (2) (%) (%) 46.0% 42.0% 38.3% 30.7% 31.7% 25.0% 25.9% 4.8% 2008 2009 2010 2011 2008 2009 2010 2011 Net Debt and Net Debt / EBITDA Net Debt Breakdown (2011) (R$ million) (R$ million) 92 2.0x 29 263.3 0.3x 2011 93.
Slide 28: Why Invest in T4F?
Why Invest in T4F? One and only investment opportunity in the entertainment industry in South America, with longstanding track-record and leadership Strong conversion of EBITDA into cash flow Asset light model, resulting in high returns and dividend payout capacity Verticalization and diversificatio
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