Atlanta Braves Holdings, Inc. - Series A · NASDAQ:BATRA
Atlanta Braves Holdings, Inc. - Series A — Atlanta Braves Holdings — Investor Day (November 2020)
60 slides from Atlanta Braves Holdings, Inc. - Series A's investor day presentation, Nov 19, 2020
Slide 1: 2020 Investor Day
2020 Investor Day November 19, 2020
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies including Formula 1’s sustainability strategy, the impact of COVID-19, marke
Slide 3: Disclaimers (cont'd)
Disclaimers (cont’d) Industry Information Certain information included herein concerning Liberty Media’s businesses and the related markets or industry position or prospects, as well as industry or market data and other statistical data regarding Liberty Media’s businesses and industries, are based
Slide 4: Disclaimers (cont'd)
Disclaimers (cont’d) Additional Disclaimers A registration statement relating to the securities of Liberty Media Acquisition Corporation has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted pri
Slide 5: What if there is no tomorrow…there wasn't one today!
“What if there is no tomorrow…there wasn’t one today!” Greg Maffei – President & CEO
Slide 6: We Saw the Last Dance…
We Saw the Last Dance… Defense keeps you in the game… • Transitioned to remote work • Shored up balance sheet and ensured liquidity across trackers and portfolio companies • Renegotiated covenants at F1, Braves & Live Nation • Revised F1 & Braves calendars …so the offense can score • Completed reatt
Slide 7: Post-Reattribution Market Reaction
Post-Reattribution Market Reaction 70% 65% 60% LYV +54% 55% FWONK +53% 50% FWONA +53% 45% 40% 35% 30% LSXMA +32% 25% LSXMK +31% 20% S&P 500 +25% 15% SIRI +19% 10% 5% - (5%) 4/20 5/20 6/20 7/20 9/20 10/20 11/20 FWONA FWONK LSXMA LSXMK LYV SIRI S&P 500 7
Slide 8: Thank You to Our Leadership
Thank You to Our Leadership Chase Carey Jim Meyer Formula 1 SiriusXM Joined 2016 Joined 2004 8
Slide 9: Liberty's Ownership in SiriusXM at 74.4%
Liberty’s Ownership in SiriusXM at 74.4% Al • What happens at 80% ownership? m ost • Threshold for tax consolidation • Liberty will file federal and potentially certain state tax returns jointly on behalf of LMC / SIRI • 80% calculated based on basic shares outstanding • Any lent shares do not count
Slide 10: We Continue to Take Advantage of Discount at LSXM
We Continue to Take Advantage of Discount at LSXM Life-to-date $1.1b Average SIRI look through price: $4.10 per share LSXM repurchases $485m+ in cumulative savings relative to buying underlying SIRI Cumulative Savings Through: Sources of liquidity for future buybacks $485 • Dividends from SiriusXM:
Slide 11: New Concorde & Regulatory Changes Support Healthier F1 Ecosystem
New Concorde & Regulatory Changes Support Healthier F1 Ecosystem • New prize fund terms and financial regulations aim to ensure long-term financial stability of all teams and increase competitiveness • More equitable prize fund distribution • $200m anti-dilution fee for new entrants • Cost cap: $145
Slide 12: Bold Sustainability Strategy at F1
Bold Sustainability Strategy at F1 F1 is a pioneer for the auto industry in environmental initiatives • Target net zero carbon emissions by 2030 • F1’s current hybrid power unit is the most efficient in the world • Delivers more power using less fuel than any other road car • Over 50% thermal effici
Slide 13: History of Strong Returns
History of Strong Returns Composite LMC • Value per share up nearly 18-fold since issuance in May 2006 Composite return • S&P +7% and NASDAQ +12% annually over same time period +33% since March $1,600 $1,400 LMC Composite Price per Share $1,200 22.1% R $1,000 C AG $800 $600 $400 $200 $0 Se 1 0 O -1
Slide 14: Introducing LMAC the SPAC
Introducing LMAC the SPAC • Liberty launching corporate-sponsored SPAC – Liberty Media Acquisition Corporation (“LMAC”) • Liberty’s interest initially attributed to Formula One Group tracking stock • $500m base offering size expected, plus 15% greenshoe • LMAC to search for target in TMT industry, a
Slide 15: Beaten Down Industries May Present Opportunity
Beaten Down Industries May Present Opportunity Pre-COVID 100% 95% Trading 90% 85% Levels 79% 77% 71% 67% 62% 58% 53% 51% Today 48% 48% 41% 28% Market Bottom rs s ing g es ng es es ing t in te ti uis ic si m ea ial sh as rv rti Ga Cr Th ec dc Se i ve rn Sp oa & Ad & Fu om os Br rts & e lec sin m es s
Slide 16: COVID Relief Efforts and Community Engagement
COVID Relief Efforts and Community Engagement Offered free streaming and launched 24/7 COVID focused channel in partnership w/ NYU Langone Health; contributed $2m to COVID response charities Launched ‘Crew Nation’ - $15m fund to support touring and venue crews; offered venues across the US as pollin
Slide 17: Brian Wendling, Chief Accounting Officer & Principal Financial Officer
Brian Wendling Chief Accounting Officer & Principal Financial Officer
Slide 18: Liberty SiriusXM Group Liabilities and Liquidity
Liberty SiriusXM Group Liabilities and Liquidity Pro Forma Liabilities Pro Forma Liquidity & Monetizable Assets ($ in millions) ($ in billions) Total Debt Encumbered SIRI shares $11,985 SiriusXM as of Q3: 3.1x levered $6.8 $44m cash LYV Call Spread Value & $1.75b undrawn revolver SiriusXM Encumbered
Slide 19: LSXM is Hedged on 1.375% Cash Convertible Notes
LSXM is Hedged on 1.375% Cash Convertible Notes • Liberty SiriusXM Group holds intergroup interests 5% equivalent to the basket of securities underlying bonds 18% • BATR: 2.292m shares • FWON: 5.2715m shares • Conversion price $47.43 • Bond hedge & warrant hedges exposure between $47.43 and $61.16 •
Slide 20: Refreshing Liberty SiriusXM Net Asset Value
Refreshing Liberty SiriusXM Net Asset Value ($ in millions) SiriusXM (3.2b shares) $19,068 Live Nation (69.6m shares) $3,903 iHeart (7.0m shares / warrants) $62 Subtotal public equities $23,033 Formula One Group Intergroup Interest (5.3m shares) $192 Braves Group Intergroup Interest (2.3m shares) $4
Slide 21: Sufficient Liquidity at FWON Holdco and F1 Opco…
Sufficient Liquidity at FWON Holdco and F1 Opco… ($ in millions) $168 $2,618 $384 Total $2,402 Unencumbered Public Equities $532 6.8m BATRK shares AT&T shares Public Equities $316 6.8m BATRK shares and 6.1m AT&T shares underlying 2.25% exchangeable bond LYV call spread LYV Call Spread Formula 1 Cash
Slide 22: …with Manageable Debt Profile
…with Manageable Debt Profile Formula One Group Debt ($ in millions) Total Debt $3,724 $2.9b Formula 1 first lien term loan Covenant Modifications & Other Terms F1 Operating Debt • Waived F1 net leverage covenant until 3/31/22 $2,90 2 • $200m minimum liquidity requirement • F1 has $639m of liquidity
Slide 23: Amended Terms Across Braves Debt Instruments
Amended Terms Across Braves Debt Instruments • Braves Group has modest $714m of debt with $240m of cash as of Q3 ($77m Corporate + $163m Braves) • $227m of mixed-use debt at Battery Atlanta is non-recourse to Braves Holdings ($ in millions) $292 Stadium Term Loan $47 Stadium Private $195 $61 Placeme
Slide 24: Multiple Ways to Pitch the Braves Valuation
Multiple Ways to Pitch the Braves Valuation Implied BATR share price assuming valued Braves EV at Mets multiple at Mets Sale $43.50 Multiple lie d $2.6b o h e n e im p n u e v e C p ric e ve S te h a s e le o f r c p u r m u ltip 6 .7 x Current BATRK Braves EV share price at Forbes $21.39 $1.8b $2.4
Slide 25: Appendix
Appendix 25
Slide 26: LMC Convertible / Exchangeable Debt Cheat Sheet
LMC Convertible / Exchangeable Debt Cheat Sheet 1.0% Convert. 2.25% Exch. 1.375% Convert. 2.25% Exch. 0.50% Exch. 2.125% Exch. 2.75% Exch. Notes (2) Notes Debent. (4) Debent. Debent. Description Debent. Debent. Issuing Entity Liberty Media Corporation Attributed Liberty SiriusXM Liberty SiriusXM Lib
Slide 27: Detailed Overview of 1.375% Cash Convertible Notes due 2023
Detailed Overview of 1.375% Cash Convertible Notes due 2023 • Attributed to Liberty SiriusXM Group • $1b Convertible Senior Notes • 1.375% semi-annual coupon • Final maturity 2023 • Cash settle • Basket of securities per $1,000 notes includes: • 21.4296 shares of LSXMA • Based on 1.0163 LSXMA per ba
Slide 28: LYV Call Spread
LYV Call Spread • Provides participation right to FWON in event of early upside in LYV • FWON purchased from LSXM a European-style call option on LYV stake with a $36.72 strike price(1) and sold LSXM a European-style call option on LYV stake with a strike price up 30% or $47.74 • Number of Shares Un
Slide 29: F1 Financials – Revenue Recognition
F1 Financials – Revenue Recognition Calendar and timing of races has significant impact on quarterly reported results • Promotion revenue recognized on day of each race • Broadcast revenue recognized pro-rata across race calendar, with some variation due to FX movements • Sponsorship revenue: • Race
Slide 30: F1 Financials – Cost Recognition
F1 Financials – Cost Recognition • Team payments • Expense recognized pro-rata across race calendar • Cash payments: • Total prize fund paid in fairly even installments across months of March – November with “true-up” points • Final true-up balance paid post-season (January & February under 2021 Con
Slide 31: F1 Tax Considerations
F1 Tax Considerations • F1 expects to be UK taxpayer in 2021 and future years • F1 cash generating entities are UK based • UK interest expense deductions are limited to 30% of UK EBITDA • Estimated future cash taxes for F1 (primarily UK) expected to be single digit percentage of adjusted OIBDA (as r
Slide 32: Understanding Normalized F1 FX Exposure
Understanding Normalized F1 FX Exposure • Roughly 80% of F1 revenue US$ denominated Approximate Revenue Exposure • P&L exposed to both transactional and by Currency translational moves in FX GBP • Team payments impacted by transactional FX 13% gains and losses, thereby sharing in exposure with F1 EU
Slide 33: Braves Group Debt
Braves Group Debt As of 9/30/20 Total ($ in millions) Outstanding Maturity Capacity Non-recourse to Braves Holdings Team Operating Debt Secured by various revenue streams, including: MLB Leaguewide Credit Facility $100 $100 2022 • Naming Rights SunTrust Revolver $85 $65 2023 • Suite and Club Seat Pr
Slide 34: Composite LMC – It All Adds Up
Composite LMC – It All Adds Up • 5/9/06: LCAPA (“LMC”) tracking stock issued • 3/3/08: LMC issues LMDIA/B 4-for-1 • 11/19/09: DTV spun from LMDIA 1-for-1; remaining assets become LSTZA on a 0.10-to-1 basis Composite LMC • 11/28/11: LMC re-combines with LSTZA on a 0.88129-for-1 basis FWONA 9.10 LSTZA
Slide 35: Footnotes and Other Sourcing Information
Footnotes and Other Sourcing Information All market data as of 11/6/20 and balance sheet data as of 9/30/20 unless otherwise noted. • Slide 6 • Liberty SiriusXM Group repurchases as of 10/31/20. Includes 1.9m LSXMA/K shares repurchased by LSXM from FWON in 4/22/20 reattribution at average LSXMA/K pr
Slide 36: Footnotes and Other Sourcing Information (cont'd)
Footnotes and Other Sourcing Information (cont’d) • Slide 18 • Fair value of cash convertible notes and exchangeable debentures; Face value of SiriusXM operating debt with no reduction for the net unamortized discount. • Corporate debt presented excludes LYV call spread liability valued at $276m as
Slide 37: Non-GAAP Information
Non-GAAP Information This presentation includes presentations of adjusted OIBDA and net operating income for Braves Holdings, which are non- GAAP financial measures, together with reconciliations to operating income, as determined under GAAP. Liberty Media defines adjusted OIBDA as operating income
Slide 38: Atlanta Braves
ATLANTA BRAVES INVESTOR UPDATE November 2020
Slide 39: Derek Schiller, President and CEO, Atlanta Braves
DEREK SCHILLER PRESIDENT AND CEO ATLANTA BRAVES 2
Slide 40: The Braves Had a Vision and Strategy in 2013 That Is Worth Repeating
THE BRAVES HAD A VISION AND STRATEGY IN 2013 THAT IS WORTH REPEATING § Develop a state-of-the-art stadium § Purchase and develop surrounding land for 365-day/year destination § Strategically rebuild the baseball team W E H AV E S U C C E S S F U L LY E X E C U T E D A G A I N S T T H I S S T R AT E
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Slide 43: Key Performance Indicators Prove Strategic Imperatives Are Working
KEY PERFORMANCE INDICATORS PROVE STRATEGIC IMPERATIVES ARE WORKING AG R GR % 9 %C CA 44 GR % 5% 22 R 2 CA G CA 2016 Turner Field 2017 SunTrust Park 2018 SunTrust Park 2019 SunTrust Park Inaugural Season Season 2 Season 3 6
Slide 44: March 13th
March 13th 7
Slide 45: How Did the Braves Respond?
HOW DID THE BRAVES RESPOND? § Took rapid action including salary reductions and a reduction in work force § Amended debt agreements allowing us to waive certain financial covenants for a discrete period of time § Worked with local officials and the CDC to develop protocols to ensure safe re- entry f
Slide 46: The Battery Atlanta Diversifies Our Portfolio of Assets
THE BATTERY ATLANTA DIVERSIFIES OUR PORTFOLIO OF ASSETS 2020 2021 § New Phase 2 office/conference/lab investment proceeding ahead of schedule § Thyssenkrupp will occupy 50% of the commercial space 9
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Slide 48: Champions
{UL ENS] CHAMPIONS First N.L. Championship Series since 2001 Braves ranked 1st in OPS, 1st in on-base %, 1st in doubles, 1st in extra base hits, 1st in total bases, 2nd in batting average, 2nd in slugging % FREDDIE FREEMAN Max Fried went 7-0 with a 2.25 ERA in 11 games: His 7 wins tied for second in
Slide 49: 31 Million People & 14 Million HHs in Core Marketing Territory
> 31 MILLION PEOPLE & 14 MILLION HHs IN CORE MARKETING TERRITORY § TV homes increased in the Atlanta DMA by 17%... Driven by streaming: (Roku, Hulu, Apple TV, etc.) § NLCS Game 7 highest-rated Braves telecast in Atlanta Designated Market Area since 2004 (21.1) § Over 300,000,000 minutes consumed on
Slide 50: Robust Engagement in Content
ROBUST ENGAGEMENT IN CONTENT § > 7,500,000 subscriptions to content platforms § # 1 in total Facebook impressions in MLB: 183,000,000 § # 1 in Facebook engagements per post in MLB: 14,857 § > 45,000,000 minutes of content consumed § Industry leading metrics in growth across all platforms Facebook Di
Slide 51: Positive Signals for 2021 Sales
POSITIVE SIGNALS FOR 2021 SALES § > 1,000 NEW season tickets sold since pandemic began. Already more than $76,000,000 retained for 2021 § Strong demand and performance across all product classes: (Groups, Hospitality, and Multi-Game packages) § > 50% of 2020 sponsorship advertisement revenue retaine
Slide 52: Looking Forward to 2021
LOOKING FORWARD TO 2021 ALL-STAR GAME RE-OPENING TO FANS THE BATTERY ATLANTA TEAM MOMENTUM Planning is Ready for a dynamic Continued increased traffic Capitalize on 2020 success underway to host re-opening in The Battery supported by and our young team the 2021 All-Star the opening of our new Game p
Slide 53: 2020 Financial Results
2020 FINANCIAL RESULTS ADJUSTED OIBDA ($M) Nine Months Nine Months Ended Ended YOY 9/30/2020 9/30/2019 Change Baseball Revenue $ 119 $ 415 -71% Development Revenue 24 27 -11% Total Revenue 143 442 -68% Baseball Expenses 179 355 -50% Development Expenses 9 10 -10% Total Expenses 188 365 -48% Baseball
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Slide 56: Mets sale news clippings
Gat 4 yoar for 629 Major League Baseball 2 Mets to be sold to billionaire Steve Cohen, reportedly for record amount Billionaire Steve Coh aa en reaches welcundnaomeimee AQFE@Ment to Purchase majority eared ili Ownership of New York Steve Cohen's $2.475 bs i — ete purchase of Mets is late 3 Des Beer
Slide 57: Appendix: Adjusted OIBDA Reconciliation to GAAP Operating Income
APPENDIX Adjusted OIBDA Reconciliation to GAAP Operating Income 20
Slide 58: Braves Development Co. – Net Operating Income
APPENDIX Braves Development Co. – Net Operating Income C urrent Sept 2 0 2 0 YTD CURRENT ASSETS % of Revenue Stabilized NOI % of Revenue Occupancy % NOI Office 100% $ 7.7 77% $ 11.4 86% Retail 84% $ 4.6 55% $ 6.4 53% Entertainment 100% $ 0.3 35% $ 2.2 82% Total C onsolidated Assets $ 1 2 .6 $ 2 0 .0
Slide 59: Net Operating Income Reconciliation to GAAP Operating Income
APPENDIX Net Operating Income Reconciliation to GAAP Operating Income YTD 9/30/2020 (1) Net Operating Income - Development $ 13 Parking/Other 3 Ownership expenses (1) (2) Stock-based Compensation 1 Depreciation/Amortization (11) Operating Income - Development $ 5 NOTES: (1) See NOI Slide (2) Stock c
Slide 60: Braves Development Co. – Leasable square footage
APPENDIX Braves Development Co. – Leasable square footage SF 000s Keys Office 322 Retail 237 Entertainment 53 Hotel 220 264 Phase 1 832 Office - TK (1) 302 Office - Other 37 Retail 16 Entertainment 51 Hotel 71 142 Phase 2 477 Total (2) 1,309 406 NOTES: (1) Does not include the Innovation Tower or co
Atlanta Braves Holdings — Investor Day (November 2020) on 6ix