Liberty Media Corporation - Series A Liberty Formula One · NASDAQ:FWONA
Liberty Media Corporation - Series A Liberty Formula One — Liberty Media Corp (FWONA, FWONB, FWONK, LLYVA, LLYVB, LLYVK, LSXMA, LSXMB, LSXMK) — Merger or Acquisition (November 2016)
14 slides from Liberty Media Corporation - Series A Liberty Formula One's merger presentation, Nov 10, 2016
Slide 1: Additional Disclaimers
Additional Disclaimers Important Note Regarding Formula 1 Financial Information This presentation includes certain financial information regarding F1, which is a privately-held foreign company. Accordingly, F1 does not provide periodic financial reporting materials similar to those filed by a public
Slide 2: Milestones Since Last Meeting
Milestones Since Last Meeting See slide 35 for additional detail. Initial investment of 18.7% closed on 9/7/2016; completed 0.4% follow-on investment on 10/27. Subject to shareholder approval. Settled Vivendi litigation for pre-tax proceeds of $511m Tracking stock recapitalization completed 4/15 Sir
Slide 3: Liberty Media Group: Transition to the Fast Lane
Liberty Media Group: Transition to the Fast Lane Formula One Group Pro Forma NAV: Note: Market data as of 11/3/16 unless otherwise noted. NAV figure excludes tax liabilities. As of announcement date of acquisition of Formula 1 based on LMCK transaction reference price of $21.26. Includes holdings in
Slide 4: Survey Says Market Approves: LMCK Share Price Performance Since Recapitalization
Survey Says Market Approves LMCK Share Price Performance Since Recapitalization (4/18/2016 – 11/3/2016) LMCK +47% post recapitalization on 4/15/16 Note: Market data as of 11/3/16. LMCK +23% post F1 announcement on 9/7/16 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 4/18/16 5/6/16 5/24/16 6/11/16 6
Slide 5: Transaction Structured to Benefit All Parties
Transaction Structured to Benefit All Parties Teams Operating control of asset Non-voting LMCK issuance maintains voting structure Efficient tax structure Complete list of legacy F1 ownership listed on slide 36. Legacy F1 Owners(1) Buyer Fans Partially monetize asset Maintain ownership interest thro
Slide 6: Strategic Rationale for Formula 1 Acquisition
Strategic Rationale for Formula 1 Acquisition Iconic Global Sporting Competition Rich 67-year history Unique scale global sports league Represents annual unique television viewership Massive Reach 5 Continents 21 Countries 21 Events in 2016 Huge international fan base Over 400m fans globally (1) Att
Slide 7: Global Fan Base with Unparalleled Popularity
Avg. race attendance(2): 99,853 Avg. NFL Stadium(3): 79,000 Highest Attended : 103,985(4) 2014 FIFA World Cup Avg. Attendance: 52,918(5) Avg. Daily Attendance: 150,000(6) Global Fan Base with Unparalleled Popularity Wide Sphere of Influence Consistent Sell-Out Attendance Backed by Attractive Sponsor
Slide 8: Formula 1 Fun Facts
Formula 1 Fun Facts Source: Third party information. 1.5 billion Cumulative TV broadcast audience for 2015 season 1.923 Seconds is world record pit stop time (Red Bull Racing 2013 and Williams 2016) 3 Number of kilograms driver loses during course of average race due to temperature and g-force 4 Num
Slide 9: Formula 1 Significant Profitability and Cash Flow Conversion
Attractive margins and very low capital intensity generate best in class profitability and cash flow conversion Adjusted EBITDA(1) margins of 26% for LTM 7/31/2016 Unlevered FCF(2) margin of 26% for LTM 7/31/2016 representing unlevered cash flow conversion of 98% Largest cost item (team payments) pr
Slide 10: Recent Revenue Growth Trends
Recent Revenue Growth Trends... Mix of and number of races Escalators in existing race promoter contracts Increasing value of live sports media rights Escalators in existing broadcast agreements Minimal net growth in advertising & sponsorship revenues 19 Races 21 Races Recent revenue growth driven p
Slide 11: Multiple Areas for Future Upside
Multiple Areas for Future Upside Race Promotion Increase number, optimize mix and enter new strategic markets Optimize locations to best monetize value from other revenue streams (i.e. sponsorship and digital) Key focus on Europe as foundation of F1 with additional opportunities in Americas and Asia
Slide 12: Announced definitive agreement to acquire Formula 1
Announced definitive agreement to acquire Formula 1 on 9/7 F1 assets and liabilities to be attributed to Liberty Media Group Liberty Media Group expected to be renamed Formula One Group upon second closing Ticker symbol expected to become FWON (A/B/K) at second closing Chase Carey serving as Chairma
Slide 13: Pro Forma Formula One Group Ownership Structure
Liberty will issue 138m non-voting LMCK shares ($2,932m as of transaction announcement(1)) Liberty has agreed to seek to raise additional funds from outside investors (including teams) to reduce equity payable to selling shareholders Any such issuance would be on separate terms with new investors An
Slide 14: Pro Forma Formula One Group Ownership Structure
Liberty will issue 138m non-voting LMCK shares ($2,932m as of transaction announcement) Liberty has agreed to seek to raise additional funds from outside investors (including teams) to reduce equity payable to selling shareholders, Ely a a a a Sopa te Re ne Any benefit or loss from change in LMCK sh