Grupo Clarin SA Class B · BCBA:GCLA
Grupo Clarin SA Class B — Q2 2017 Earnings Presentation
31 slides from Grupo Clarin SA Class B's earnings presentation, Aug 11, 2017
Slide 1: First Half and Second Quarter Results 2017
First Half and Second Quarter Results 2017 August 11th, 2017
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain information included in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as “expect”, “bel
Slide 3: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 4: Macroeconomic Environment
Macroeconomic Environment Key Indicators Consumer Price Index(1) Central Bank Reference Rate(*) % yoy % yoy 45% 44% 38,0 40% 33,0 36% 30,8 34% 26,8 28% 24,8 25,5 22,3 25% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Consumer Price Index(1) GDP Arg
Slide 5: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 6: Income Statement 1H17 & 1H16
Income Statement 1H17 & 1H16 yoy figures Exhibit 1: Net Sales Exhibit 2: Adjusted EBITDA1 EBTIDA Margin (%) % yoy, AR$ MM % yoy, AR$ MM 4.8 +30% 6,282 7.9 -21% 301 799 4,832 382 524 2,886 629 1,915 406 -4 -20 -58 2,609 2,958 1H and 2Q Results - August 11th, 2017 -270 -215 -361 1H16 1H17 1H16 1H17 Br
Slide 7: Income Statement 2Q17 & 2Q16
Income Statement 2Q17 & 2Q16 yoy figures Exhibit 4: Net Sales Exhibit 5: Adjusted EBITDA1 EBTIDA Margin (%) % yoy, AR$ MM % yoy, AR$ MM +31% 3,606 11.5 10.8 396 +23% 389 2,746 250 316 1,819 1,203 415 333 1,395 1,578 1H and 2Q Results - August 11th, 2017 -21 4 11 -101 -188 -37 2Q16 2Q17 2Q16 2Q17 Bro
Slide 8: Income Statement 2Q17 & 2Q16
Income Statement 2Q17 & 2Q16, yoy figures EBTIDA Margin (%) Exhibit 7: 2Q16 Exhibit 8: 2Q17 AR$ MM AR$ MM 3,606 2,746 31% 1,585 2,176 37% 1H and 2Q Results - August 11th, 2017 23% 845 1,042 11.5 10.8 316 23% 389 Net Sales Cost of Selling & EBITDA Net Sales Cost of Selling & EBITDA Sales Adm. Sales A
Slide 9: Financial Debt
Financial Debt Exhibit 9: Key Financial Ratios AR$ MM 64 MM at 16.63 ARS/ USD 6M17 FY16 % Ch. Total Gross Debt Outstanding* 1,063.6 442.4 140.4% Total Gross Debt Incl. Interests** 1,071.9 445.9 140.4% Total Net Debt 426.4 101.4 320.6% Net Debt/ Adjusted EBITDA1 .27x .1x 177.0% % US$ Debt 34.9% NA NA
Slide 10: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 11: Broadcasting & Programming
Broadcasting & Programming Revenues & Costs EBTIDA Margin (%) Exhibit 11: 2Q16 Exhibit 12: 2Q17 AR$ MM AR$ MM 1,203 51% 1,819 74% 632 1,102 27% 27.7 22.8 238 303 333 25% 415 Net Sales Cost of Selling & EBITDA Net Sales Cost of Selling & EBITDA 1H and 2Q Results - August 11th, 2017 Sales Adm. Sales A
Slide 12: Broadcasting & Programming II
Broadcasting & Programming II Key Ratios Exhibit 15: Key Ratios +18% +1% 37.2 38.6 38.9 31.4 2Q16 2Q17 2Q16 2Q17 Prime Time1 (%) Advertising Share2 (%) +8% 1H and 2Q Results - August 11th, 2017 33.4 31.1 2Q16 2Q17 Total Time1 (%) (1) Share of broadcast TV audience according to IBOPE for AMBA. Prime
Slide 13: Printing & Publishing
Printing & Publishing Revenues & Costs EBTIDA Margin (%) Exhibit 16: 2Q16 Exhibit 17: 2Q17 AR$ MM AR$ MM 1,395 13% 1,578 819 7% 875 21% 573 692 0.7 0.3 202% 4 11 Net Sales Cost of Selling & EBITDA Net Sales Cost of Selling & EBITDA 1H and 2Q Results - August 11th, 2017 Sales Adm. Sales Adm. Expenses
Slide 14: Printing & Publishing II
Printing & Publishing II Key Ratios Exhibit 20: Key Ratios -9% -3% 237 51.5 49.9 217 2Q16 2Q17 2Q16 2Q17 Circulation1 (‘000s) -4% Advertising Share2 (%) 40.5 38.9 1H and 2Q Results - August 11th, 2017 2Q16 2Q17 Circulation Share3 (%) (1) Average number of copies according to IVC (including Diario Cl
Slide 15: Digital Content & Others
Digital Content & Others Revenues & Costs EBTIDA Margin (%) Exhibit 21: 2Q16 Exhibit 22: 2Q17 AR$ MM AR$ MM 59% 396 250 149 78% 265 39% 121 (8.3) 168 (9.3) 78% 21 37 Net Sales Cost of Selling & EBITDA Net Sales Cost of Selling & EBITDA 1H and 2Q Results - August 11th, 2017 Sales Adm. Sales Adm. Expe
Slide 16: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Overview 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 17: Transaction Overview
Transaction Overview Latest Events – CVH & Cablevisión SA Board of Directors of Cablevisión S.A has approved the “Pre-Merger Commitment” whereby Cablevisión will merge into Telecom Argentina (“TEO”) subject to certain corporate and regulatory approvals Preliminary Exchange ratio: 9,871.07005 new
Slide 18: Transaction Summary and Capital Ownership
Transaction Summary and Capital Ownership Transaction Summary Simplified ownership structures Pre-transaction structure1 Cablevisión S.A., in an all Class B shares – Total Float stock transaction, will be Fintech Former Nortel absorbed by Telecom Fintech Pref. Stock ANSeS Float5 Argentina Media Te
Slide 19: Call Option and Shareholder Agreement
Call Option and Shareholder Agreement Pre- call option transaction structure1 Shareholder Agreement Fintech Media + Fintech Telecom 3 Float 5 Subject to the satisfaction of 37.8% certain conditions the CEO 29.2% and other Key Employees 33.0% (other than the CFO and the Internal Auditor) to be desi
Slide 20: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 21: CVH Income Statement & Financial Debt
CVH Income Statement & Financial Debt Two Months ended June 30, 2017 (“2M17”) Exhibit 25: Revenues & EBITDA1 Exhibit 26: CV Debt Profile as of June 30th, 2017 % yoy, AR$ MM EBTIDA Margin (%) US$ MM 601 6,681 501 2,482 1,626 38.5 29 44 20 6 1 2,573 2017 2018 2019 2020 2021 2022 Total Net Sales Cost o
Slide 22: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 23: Cablevisión Income Statement 1H17 & 1H16
Cablevisión Income Statement 1H17 & 1H16 yoy figures Exhibit 29: Revenues Exhibit 30: Adjusted EBITDA1 EBTIDA Margin (%) % yoy, AR$ MM % yoy, AR$ MM 39.1 +35% 19,233 +41% 7,515 80 1,954 37.5 14,243 5,340 2,102 264 7,435 17,279 12,141 5,076 1H and 2Q Results - August 11th, 2017 1H16 1H17 1H16 1H17 Ex
Slide 24: Cablevisión Income Statement 2Q17 & 2Q16
Cablevisión Income Statement 2Q17 & 2Q16 yoy figures Exhibit 32: Revenues Exhibit 33: Adjusted EBITDA1 EBTIDA Margin (%) % yoy, AR$ MM % yoy, AR$ MM 38.1 9,801 +46% 3,734 +37% 11 933 35.7 7,175 2,562 1,056 124 3,723 8,868 6,119 2,438 1H and 2Q Results - August 11th, 2017 2Q16 2Q17 2Q16 2Q17 Exhibit
Slide 25: Cablevisión Income Statement 2Q17 & 2Q16
Cablevisión Income Statement 2Q17 & 2Q16, yoy figures EBTIDA Margin (%) Exhibit 35: 2Q16 Exhibit 36: 2Q17 AR$ MM AR$ MM 9,800 7,174 37% 29% 3,658 2,837 2,408 1,776 36% 38.1 1H and 2Q Results - August 11th, 2017 35.7 2,561 3,734 46% Revenues Cost of Selling & EBITDA Revenues Cost of Selling & EBITDA
Slide 26: Cable TV, Internet Access & Telephony Key Ratios
Cable TV. Internet Access & Telephony Key Ratios Exhibit 37: Cable & Internet Access Statistics ‘000s 1H17 1H16 % Ch, 2Q17 1Q17 2Q16 QoQ YoY Homes Passed(*) 7,864.2 7,815.4 0.6% 7,864.2 7,833.7 7,815.4 0.4% 0.6% Bidirectional Homes Passed 76.6% 73.4% 4.4% 77% 76% 73% 0.8% 4.4% Total CATV Subscribers
Slide 27: Key Ratios for Cable TV and Internet Access
Cable TV, Internet Access & Telephony Key Ratios for Cable TV and Internet Access Exhibit 39: Unique Subs(1) Exhibit 40: Total Cable Subs Exhibit 41: Total Equity Subs(1) ‘000s ‘000s ‘000s 0% 0% 0% 3.900 3.915 3.522 3.510 3.654 3.640 +15 -12 -14 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 Exhibit 42: Internet Sub
Slide 28: Cablevisión Capex & Revenues
Cablevisión Capex & Revenues 1H17 & 1H16, YoY figures Exhibit 45: Capex & Net Sales Exhibit 46: Capex & Net Sales USMM 14,243 19,233 589 600 28% 30 550 500 23% 450 25 450 21% 400 18% 20 341 17% 17% 28.9% 350 324 25.4% 284 292 300 15 3,620 5,554 250 200 10 150 100 5 50 1H and 2Q Results - August 11th
Slide 29: Agenda
Agenda Argentina – Latest Events Grupo Clarín Income Statement & Financial Debt Business Segments CVH Transaction Summary 1H and 2Q Results - August 11th, 2017 Income Statement & Financial Debt Cablevisión Results Q & A Session
Slide 30: Q & A Session
Q & A Session August 11th, 2017
Slide 31: First Half and Second Quarter Results 2017
First Half and Second Quarter Results 2017 August 11th, 2017