Liberty Media Corporation - Series A Liberty Formula One · NASDAQ:FWONA
Liberty Media Corporation - Series A Liberty Formula One — Liberty Media — Merger or Acquisition (April 2024)
24 slides from Liberty Media Corporation - Series A Liberty Formula One's merger presentation, Apr 1, 2024
Slide 1: Liberty Media Acquisition of MotoGP
Liberty Media Acquisition of MotoGP APRIL 1, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Cautionary Note Regarding Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including certain statements relating to the proposed transaction and its completi
Slide 3: Additional Disclaimers
Additional Disclaimers Important Note Regarding Dorna Financial Information This presentation includes certain financial information regarding Dorna, which is a privately held foreign company headquartered in Madrid, Spain. Accordingly, Dorna does not provide periodic financial reporting materials s
Slide 4: Today's Speakers
Today’s Speakers Liberty Media MotoGP Greg Maffei Carmelo Ezpeleta President and CEO CEO 4
Slide 5: Liberty Announces Agreement to Acquire Commercial Rightsholder of MotoGP
Liberty Announces Agreement to Acquire Commercial Rightsholder of MotoGP Scarce, League-Level Asset… with broad commercial rights to utilize IP as world’s leading motorcycle racing championship Attractive Financial Profile… with high free cash flow generation driven by diverse, contracted revenue an
Slide 6: Attractive, Premium IP Assets
Attractive, Premium IP Assets Exclusive Commercial Rights Holder to MotoGP World Championship World’s most prestigious motorcycle racing series for past 75 years 2024 calendar spans 21 races across 17 countries Scarcity Exclusive Commercial Rights Holder to F1 World Championship The global pinnacle
Slide 7: Benefitting from Tailwinds in Live Sports & Entertainment Market
Benefitting from Tailwinds in Live Sports & Entertainment Market • Live event attendance growing as fans prioritize experiential spending • Sports content differentiated by ability to aggregate large audiences on predictable basis • Universe of media platforms interested in sports content continues
Slide 8: Transaction Summary
Transaction Summary • Liberty announces agreement to acquire Dorna, exclusive commercial rights holder to the MotoGP World Championship o Attributed to Formula One Group tracking stock • Transaction equates to €4.2b Enterprise Value / €3.5b Equity Value o Liberty to own 86% with management retaining
Slide 9: MotoGP: An Iconic Racing Business
MotoGP: An Iconic Racing Business 21 11 45 races across teams 5 minute action- packed races premium, 75 17 22 competitive manufacturers 20 countries riders minute Sprint year history race at every event All manufacturers won races 2022 & 2023 360 140m 3m km/hr (223 mph) 100% 15 digital audience cumu
Slide 10: The World of MotoGP
The World of MotoGP British GP Dutch GP 04-Aug 30-Jun German GP 07-Jul Italian GP 02-Jun Austrian GP Kazakhstan GP 18-Aug 16-Jun Catalan GP 26-May San Marino GP Japanese GP Americas GP 08-Sep 06-Oct 14-Apr Aragon GP 01-Sep Thai GP 27-Oct Valencia GP Malaysian GP 17-Nov French GP 03-Nov 12-May Indone
Slide 11: The Key Partners in MotoGP Ecosystem
The Key Partners in MotoGP Ecosystem Fédération Internationale Media Partners de Motocyclisme Global regulatory Commercial body for two-wheel media rights racing Represents interests of teams in Right to host championship races International Road Racing Race Promoters Teams Association Technical inp
Slide 12: Meeting the MotoGP Fan
Meeting the MotoGP Fan 1 Highly Engaged and Loyal Fan Base • 92% fans identify as “avid” followers • 82% have followed the sport for 6+ years “It’s about the fans, the championship, the • 82% fans watch over 75% of all races passion – once it’s in your blood, you can’t let it 2 Avid Race Attendees g
Slide 13: Diverse, Contracted Revenue Streams
Diverse, Contracted Revenue Streams Revenue Segment Description Avg. Contract Length (Yrs.) Partners 2023 Revenue Mix • 117 media partners reaching over • Media rights fees 200 countries and territories Media Rights • DTC subscription 3-5 8% (“VideoPass”) 17% • 21 unique promoter partners 43% in 202
Slide 14: Significant Profitability and High Cash Flow
Significant Profitability and High Cash Flow High Adjusted EBITDA margins with minimal capital intensity results in significant free cash flow generation Revenue Adjusted EBITDA1 Capital Expenditures € 475m € 486m € 358m € 179m € 156m € 122m € 2m € 4m € 5m 2021 2022 2023 2021 2022 2023 2021 2022 202
Slide 15: Liberty Partnership to Accelerate MotoGP Growth
Liberty Partnership to Accelerate MotoGP Growth Leverage Liberty’s Ability to Scale Leading Global Sports Assets Expansion Opportunity Especially in Key Growth Markets including US Amplify Marketing Support and Storytelling Capabilities Broaden MotoGP Reach and Appeal to Drive Competition and Boost
Slide 16: Appendix
Appendix
Slide 17: Liberty Pro Forma Structure
Liberty Pro Forma Structure Liberty Tracking Stock Groups Liberty Live Group Formula One Group Liberty SiriusXM Group 30 % 100 % 86 % 100 % 83 % Other Private Other Private Assets1 Assets2 Note: Represents Liberty structure at time of transaction announcement, pro forma for MotoGP acquisition. 1 Oth
Slide 18: Transaction Terms
Transaction Terms • Liberty has agreed to acquire 86% of MotoGP, with MotoGP management retaining 14% pro forma ownership Overview • MotoGP will be attributed to Liberty’s Formula One Group tracking stock • Transaction equates to enterprise value of €4.2b and equity value of €3.5b • Equity considera
Slide 19: Transaction Sources and Uses
Transaction Sources and Uses Sources (€b) Uses (€b) 1 Incremental Cash and Debt € 2.3 Equity Value € 3.5 2 FWONK Share Issuance 0.7 Cash to MotoGP Shareholders 2.3 3 MotoGP Net Debt 0.8 FWONK Equity Issuance 0.7 MotoGP Management Retained Equity 0.5 MotoGP Management Retained Equity 0.5 1 MotoGP Net
Slide 20: Ownership and Capitalization
Ownership and Capitalization MotoGP Ownership Capitalization (as of 12/31/23) Pre-Transaction As of December 31, 2023 Outstanding (m) Formula 1 Cash and Cash Equivalents $ 1,002 21 % RCF ($500m Capacity) $0 Senior Loan Facility 2,407 Total Debt $ 2,407 MotoGP Management Net Debt $ 1,405 Selling Stoc
Slide 21: Summary Financial Performance
Summary Financial Performance (€ in millions) 2021 2022 2023 Number of MotoGP races 18 20 20 Revenue €358 €475 €486 Consolidated income (loss) €(38) €(8) €(28) Adjusted EBITDA1 €122 €156 €179 % Adjusted EBITDA margin2 34.1% 32.8% 36.8% Capital expenditures €2.4 €4.3 €5.3 % Revenue 0.7% 0.9% 1.1% Not
Slide 22: MotoGP Management Team
MotoGP Management Team • Education & background in engineering • Previously worked in international & corporate banking at Banesto in NYC • Served as Director of Jarama Circuit for 10 years • Served as M&A Director for Banesto in Madrid • Managed construction of the Circuit de Barcelona • Served as
Slide 23: MotoGP Team Overview
MotoGP Team Overview Factory Teams Independent (Satellite) Teams Team Bike Riders Key Sponsors Team Bike Riders Key Sponsors Ducati Prima • Franceso Bagnaia (IT) • Franco Morbidelli (IT) Lenovo Pramac • Enea Bastianini (IT) • Jorge Martín (ESP) Team Racing Pertamina Red Bull • Fabio Di Enduro KTM •
Slide 24: Spanish Non-GAAP Reconciliation Schedule
Spanish Non-GAAP Reconciliation Schedule Spanish Non-GAAP Financial Measures and Supplemental Disclosures This presentation includes a presentation of Adjusted EBITDA, which is a Spanish non-GAAP financial measure used by MotoGP, together with reconciliations to MotoGP’s stand-alone consolidated inc