Atresmedia Corporación de Medios de Comunicación S A : La sociedad remite información sobre la presentación sobre los resultados

February 27th, 2020

www.atresmediacorporacion.com

"We believe in the power of reflection and emotion"

2019 Highlights

• According to external sources, Total Ad market flattened out in 2019 with TV down by 6%, Radio up by 1% and Digital up by 9%
• Atresmedia TV increased its market share vs 2018 by 20bps, to 40.7%
• Atresmedia Digital revenue grew by 6.5% up to €48 mill
• Atresmedia Radio's NAR totaled €83 mill (+0.7% yoy)
• Atresmedia's Total Net revenue amounted to €1,039 mill; -0.3% yoy
• OPEX stood at €855 mill; flat yoy
• EBITDA of €184 mill (-1.7% yoy)
• Net Profit reached €118 mill vs €88 mill in 2018
• Operating Cash Flow in line with EBITDA (€184 mill)
• Total Net Debt stood at €193 mill (vs €231 mill at Dec 2018), 1.05x Net Debt /EBITDA
• In addition to the interim dividend (0.2 €/sh) paid in Dec 19, a final dividend payment in the amount of 0.25 €/sh has been submitted to the AGM's approval

2019 Results	2

1

2019 Financial Summary

2019 Results	3

Atresmedia

2019 Results in € mill: P&L

		2019		2018		YoY
Net Revenues
1,039.4	1,042.3		-0.3%
	<<
OPEX			855.5	855.2		+0.0%
<<<<<<<<<<<<<<<<<
EBITDA	<<<	183.9	187.1		-1.7%
EBITDA Margin	17.7%	18.0%
EBIT			164.4	168.6		-2.5%
EBIT Margin			15.8%	16.2%
Net profit			118.0	88.2		+33.8%
Net profit Margin			11.4%	8.5%

Source: Atresmedia's financial statements

2019 Results	4

Atresmedia: Net revenues by segment

• Total Net Revenues stood at €1,039 mill, -0.3% yoy
• Audiovisual revenues were €965 mill (-0.4% yoy)
• Radio revenues totaled €83 mill (+0.7% yoy)

Net Revenues

In € mill

-0.3%

			-0.4%
1,042	1,039	969	965

					+0.7%
					83	83
2018	2019	2018	2019	2018	2019
Total Group		Audiovisual			Radio

Source: Atresmedia's financial statements

Eliminations are not included

2019 Results	5

Atresmedia: Total revenue

• TV NAR's decline due to the tough ad market conditions was partially offset by other activities, mainly Content

Total revenue evolution breakdown yoy

In € mill

1,042.3	+38.3	+2.6	+0.6	1,039.4
	+0.6
	+2.9
	-48.0

FY2018 TV NAR	Digital Content Others	Radio	Elimin. FY2019
Total Rev	NAR

Audiovisual

Source: Atresmedia's financial statements

2019 Results	6

Atresmedia: Total revenue breakdown & evolution

• In terms of diversification, non TV Ad revenue accounted for 25% of Total revenue in 2019 vs 17% three years ago

Net Revenue breakdown

In € mill

	2%						4%
			Others
	6%							9%
Non TV Ad: 17%			Content
1%			Non TV Ad: 25%
	8%			Digital			5%
				Radio		8%

83%	TV Ad	75%

2016	2019
Source: Atresmedia's financial statements
Eliminations are not included
2019 Results	7

Atresmedia: OPEX by segment

• Total OPEX was €855 million, same than in 2018
• Audiovisual expenses reached €798 mill (flat yoy)
• Radio expenses: €66 mill (-0.2% yoy)

OPEX

In € mill

0.0%

855 855

0.0%

799 798

					-0.2%
					66	66
2018	2019	2018	2019	2018	2019
Total Group		Audiovisual		Radio

Source: Atresmedia's financial statements

Eliminations are not included

2019 Results	8

Atresmedia: EBITDA by segment

• Total EBITDA was €184 million, -1.7% yoy
• Total EBITDA margin down by 30 bps yoy to 17.7%

EBITDA & EBITDA margin

In € mill

-1.7%-2.3%

187	184		171	167
									+4.5%
18.0%	17.7%	17.6%	17.3%
								20.7%
							20.0%
							17	17
2018	2019		2018	2019	2018	2019
	Total Group		Audiovisual			Radio

Source: Atresmedia's financial statements

Eliminations are not included

2019 Results	9

Atresmedia: Cash flow & Debt position

• Total net debt amounted to €193mill vs €231mill in 2018
• Operating Cash Flow equals EBITDA: €184 million
• Total net debt last 12 months/EBITDA = 1.05x

Cash flow

In € mill

+184

-37

		-109	-193
-231
FY18 Net	Operating Investing CF	Divid &	FY19 Net
debt	CF	Others	debt

Credit facilities

In €mill

539

Undrawn

48%
86	Cash
Drawn
52%	Net
193
Debt

Total available credit facilities

Source: Atresmedia's financial statements

Source: Atresmedia's financial statements

2019 Results	10

Atresmedia Audiovisual

2019 Results in € mill: P&L

	2019		2018		YoY
Total Net Rev.	965.1	969.2		-0.4%
OPEX	798.4	798.6		0.0%
EBITDA	166.7	170.6		-2.3%
EBITDA Margin	17.3%	17.6%
EBIT	150.0	154.2		-2.7%
EBIT Margin	15.5%	15.9%

Source: Atresmedia`s financial statements

2019 Results	11

Audiovisual: Breakdown

• Audiovisual Net Revenues: TV decline offset by the increase in Digital, Content and Others
• OPEX flat basically driven by savings in Programming Costs and Overheads
• Personnel was up due to internal costs reallocations from Programming and Overheads into Personnel

		Net Revenue breakdown			OPEX breakdown
	In € mill	969	-0.4%	965	In € mill
Others	37	+7.1%	39			799	0.0%	798
Content	58	+65.9%	96
Digital	45			132
+6.5%	48	Variable	+24.3%	164
					Overheads	119	-10.6%	107
	TV				Personnel	109	+24.2%	136
		829	-5.8%	782	Programming

costs & Others

438 -10.5%392

2018	2019	2018	2019
Source: Atresmedia's financial statements
2019 Results		12

Atresmedia Radio

2019 Results in € mill: P&L

	2019		2018
Net Revenues	83.1	82.5
OPEX	65.9	66.0
EBITDA	17.2	16.5
EBITDA Margin	20.7%	20.0%
EBIT	14.4	14.4
EBIT Margin	17.4%	17.5%

Source: Atresmedia's financial statements

YoY

+0.7%

-0.2%

+4.5%

0.0%

2019 Results	13

2

2019 Operational Summary

2019 Results	14

Atresmedia: Market positioning

• Atresmedia grabs 16% of the Total Advertising market in Spain (#1 national player)

€ 5.95bn

8%

8%

12%

~38% Search

39%

~62% Display, Video &

Social Networks

34%

Total Ad market

2019

17%

3%

41%

Gross advertising revenues 2019

• € 1bn

2nd national player

15%

		Others
16%	€ 5.95bn	47%

International player

22%

+

• 5 mill spectators/year
• 58 mill international households

Source: Infoadex & internal estimates

Source: Infoadex & internal estimates

2019 Results	15

Advertising market in Spain

• According to external sources, Total Ad market was flattish in 2019
• TV Ad market was down by 6% approx. with Radio flattish and Digital outperforming the overall market

Media	I2p
TV	-5.9%
Radio	+0.1%
Newspapers	-9.9%
Magazines	-14.9%
Sunday suppl.	-9.7%
Outdoor	-2.2%
Digital	+10.7%
Cinema	+3.8%
Total	+0.4%

Infoadex

-5.8% +1.1% -9.1%-14.5%-7.8% +1.0% +8.8% +5.2%

-0.2%

Source: I2p (ArceMedia) & Infoadex

2019 Results	16

TV Advertising market

• Negative year affected by the lack of sport events in FTA (FIFA World Cup & Champions League), two election processes in Spain and worse-than-expected performance in some categories such as autos

Gross Total TV Advertising by quarter (yoy growth)

22%

		12%		11%
	8%	8%
	6%			6%		4%
	3%	3%	3%		3%	3%	1%	2%
			1%			1%
									-2%			-1%
	-3%						-3%
							-4%			-5%
-10%	FY14=+11%	FY15=+6%		FY16=+6%		FY17=+1%		FY18=-1%			-9%-8%

-16%	FY19=-6%

FY13=-6%

Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q4 17 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419

Source: Infoadex

2019 Results	17

TV Advertising market by category

• Sectors with highest weight among the worst performers in the year

2019 TV Ad market share by category

Autos

14%

Others

27%

Food 11%

Beverages		Beauty
6%
	12%
Health
5%
Finance		Telecom
8%	Retail	10%
	8%

2019 TV Ad market evolution

	TV
	Market
	-5.8%
Autos	-7%
Food	-9%
Beauty & Hygiene	-4%
Telecom			14%
Retail	-7%
Finance	-5%
Health	-4%
Beverages	-10%
Others (*)	-9%

Source: Internal estimates

*Others (<5% weight each): Cleaning, Leisure & sports, energy,….

2019 Results	18

TV Advertising market by category: Quarterly evolution

• Only Telecom increased its ad spending at every quarter

Quarterly evolution by category

						38%
			Q1
			Q2
			Q3						21%	18%
			Q4
					8% 8%			5%	6%
	1%					4%	3%
					0%
	-1%			-3%	-1%		-1%	-3%		-3%	-3%
				-6%
	-7%	-7%			-8%
	-10%			-12%	-9%		-11%	-11%	-11%		-11%-10%
	-15%	-12%
							-15%		-12%
							-20%
										-33%
	Beauty			Food	Autos	Telecom	Retail	Finance	Health	Beverages	Others
Weight	12%			11%	14%	10%	8%	8%	5%	6%	27%
2019
Source: Internal estimates
2019 Results							19

TV Ad market: Competitive position

• Atresmedia's market share stood at 40.7% (+20 bps vs 2018)
• The highest power ratio in the industry (1.6x)

Ad share positioning

1.6x	1.5x	Market share
		Power ratio

41%

43%

	0.7x
0.6x	0.4x

			5%	6%	5%
	A3M	MSE	Forta	Other FTAs	Pay TV
Ad share vs 2018	+0.2	+0.1	-0.3	-0.3	+0.4
(in pp)

Source: Infoadex

2019 Results	20

TV viewing

• Linear TV viewing remained at very high levels (more than 3h40min/day on average)

Average daily TV viewing		Average daily video viewing

In hours
3h46'	3h54' 3h59'	4h06'	4h04' 3h59'	3h57' 3h53' 4h00'	3h54'	3h42'

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Linear No Linear Guests

Source: Kantar Media. Non linear TV viewing includes +7 days viewing through TV set (TV viewing on desktops, tablet or mobile devices not included)

In %

4.8%

1.3%

11.8%

1.3%

2.3%

	5h05'
	Dec19*
	78.5%
Linear TV			Time shift
TV in Internet			Youtube
SVoD			Other Video Online

Source: Linear TV and Time Shift: Kantar; Internet TV: Comescore

Video Metrix; Youtube: Comscores VideoMetrix; SVoD: Comscore Video Metrix

*Data of the month

2019 Results	21

Television: Atresmedia audience share

• Audience levels decline by 60 bps in the 1st full year without sports rights

Audience group

In %						26.8	26.2
				2018	2019
12.3 11.7
	6.9	7.0
		2.4	2.4	2.4 2.2	1.6 1.5	1.2 1.4
-0.6	+0.1	+0.0	-0.2	-0.1	+0.2	-0.6

Source: Kantar Media. Total Individuals (4y+)

2019 Results	22

Television: Audience share by top players

• Atresmedia achieved 26.2% audience share in Total Individuals and 27.7% in Commercial Target in 2019

	Audience Share Total Individuals	Aud. Share by Commercial Target
					In %
In %
30.2	28.7	28.8	28.9	31.0		30.5	30.4
		30.0
27.1	26.6	26.8	26.2	29.7	28.5	28.4	27.7
16.8	16.6	16.5	15.5	14.4
				13.6	13.2	12.7

2016

2017

2018

2019

2016

2017

2018

2019

Source: Kantar Media. Total Individuals (4y+)

Source: Kantar Media. Commercial Target (25-59 y), >10,000 inhabitants

2019 Results	23

Television: Core channels audience share

• Antena 3 achieved 11.7% in Total Individuals and 11.4% in the Commercial Target

Audience Share Total Individuals	Aud. Share by Commercial Target
In %	In %

14.4	14.1	14.8	14.2
13.5
13.3	13.4
			12.4

12.8	12.3	12.3		12.8	12.1	11.9
		11.7		11.4
		10.5
10.1	10.4
		9.4
			8.8	8.5	8.6
				7.8
2016	2017	2018	2019	2016	2017	2018	2019

Source: Kantar Media. Total Individuals (4y+)

Source: Kantar Media. Commercial Target (25-59 y), >10,000 inhabitants

2019 Results	24

Television: Tier II channels audience share

• La Sexta improved 2018 ratings and widened the gap with its main commercial competitor, Cuatro

Audience Share Total Individuals

In %

			8.0
	7.4	7.6
7.2
		7.0
7.1	6.8	6.9

6.5

6.2 6.0

5.3

2016 2017 2018 2019

Aud. Share by Commercial Target

In %

8.1

7.4 7.4 7.6

7.6		7.3
	7.2

6.4

5.7 5.7 5.8 5.3

2016

2017

2018

2019

Source: Kantar Media. Total Individuals (4y+)	Source: Kantar Media. Commercial Target (25-59 y), >10,000 inhabitants

2019 Results	25

Television: Complementary channels audience share

• Atresmedia's complementary channels reached 7.5% audience share

Complementary channels' audience share

In %			2019						Channels
	2018
A3M				7.5		-0.1
			7.6	8.8
MSE					+0.1
				8.7
TVE				6.1			+0.1
			6.0
Net				2.9				+0.0
			2.9
Veo				2.8				+0.2
			2.6
13TV				2.1				+0.1
			2.0
Dkiss		0.9							+0.1
	0.8
RMadrid		0.3								+0.0
0.3
Ten			0.4								+0.1
		0.3
Source: Kantar Media
Audience share 24h; Total Individuals: 4+
2019 Results	26

Atresmedia Television: Ad revenues breakdown in 2019

2019 Key factors

∆ GRPs

∆ Price

-3%-3%

∆ Gross Ad. Revenue

-6%

Source: Internal estimates

2019 Results	27

Atresmedia Digital

• Atresmedia's family of sites ranks 6th of the most visited sites in Spain

ATRESMEDIA SITES

Most visited sites	#6th
Ranking
(Comscore)

Latam

Sales 2019

28% 24%

Unique users	>26 mill
(Dec 19 Comscore)

Non Video

Programmatic

2.3 mill

Videoplayer users (Dec 19)

7.5 mill

Registrations (Dec 19)

125K

Subscribers (Dec 19)

72%	76%
Direct
Video*	Sales
By Format	By Type
* Incl Rich media	of sale

2019 Results	28

Production & Content sales: Atresmedia International

• Up to 58 mill subscribers in our international channels (>3x vs 2013)

						AtresCine
						6%
					HolaTV	AtreSeries
					38%	22%
	Subscribers
	In millions				2019
						58 mill
						A3
				55	58	Internacional
				34%
						Europe
					USA	1%
			17		12%
1	4				2019
			58 mill
					Mexico	Latam
					24%	64%
1996	2004	2013	2018	2019

> 30 countries

> 240 Pay TV operators

2019 Results	29

Production & Content sales: Cinema & Studios

• Atresmedia Cinema accounted for 33% of total box-office takings generated by Spanish films in 2019
• Atresmedia Studios delivered new productions to 3rd parties

• Highest grossing spanish movie in the year

Season 1 & 2

Client: Movistar+

 KLAUS	Client: Amazon Prime Video
Oscar nomination for
Best Animated film

2019 Results	30

Atresmedia Radio

• Atresmedia Radio revenue grew by near +1% in 2019

Atresmedia Radio vs Radio market		Revenues breakdown in 2019

2019 growth

			Music
Radio market Revenues	+1.1%		Local
(Infoadex)			25%
				44%
	Revenues OPEX	Talk	National
	+0.7%
	-0.2%		75%
			56%

EBITDA: 17.2 M€ (+4.5%)

By format

By market

Ebitda Margin: 20.7% (+70bps)

Source: Infoadex

2019 Results	31

Atresmedia Radio

• Atresmedia Radio reached near 3.5 mill listeners/day in the last survey

Listeners evolution

In thousand of listeners

4,119 4,153 4,106 4,091 4,012 3,947 3,875 3,664 3,568 3,470 3,445

1,902	1,947 1,912	1,922	1,898	1,961	1,975	1,909	1,908	1,926	1,948
1,943	1,920	1,910	1,871	1,805	1,713	1,651
												1,522 1,410					1,300
																						1,310
			286
274		284	298	309	273	249	233	250	234	197

2nd 16 3rd 16 1st 17 2nd 17 3rd 17 1st 18 2nd 18 3rd 18 1st 19 2nd 19 3rd 19

Source: EGM Surveys Monday to Friday (.000) ( Moving average).

2019 Results	32

Back up

2019 Results	33

Atresmedia

Q4 19 Results in € mill: P&L

	Q4 19
Total Net Rev.	315.7
OPEX	258.2
EBITDA	57.6
EBITDA Margin	18.2%
EBIT	52.7
EBIT Margin	16.7%
Net profit	37.8
Net profit Margin	12.0%

Source: Atresmedia`s financial statements

Q4 18

YoY

1. +7.1%

1. +11.5%

63.2 -8.8%

21.4%

58.5 -10.0%

19.9%

2.1 x18

0.7%

2019 Results	34

Atresmedia Audiovisual

Q4 19 Results in € mill: P&L

	Q4 19	Q4 18	YoY
Total Net Rev.	293.5	273.3	+7.4%
OPEX	243.4	216.5	+12.5%
EBITDA	50.1	56.8	-11.8%
EBITDA Margin	17.1%	20.8%
EBIT	45.9	52.7	-12.9%
EBIT Margin	15.6%	19.3%

Source: Atresmedia`s financial statements

2019 Results	35

Television: Ad revenues breakdown in Q4 19

Q4 19 Key factors

∆ GRPs

∆ Price

1%

-6%

∆ Gross Ad. Revenue

-5%

Source: Internal estimates

2019 Results	36

Atresmedia Radio

Q4 19 Results in € mill: P&L

	Q4 19	Q4 18
Net Revenues	24.0	23.8
OPEX	16.5	17.4
EBITDA	7.5	6.3
EBITDA Margin	31.1%	26.7%
EBIT	6.8	5.8
EBIT Margin	28.2%	24.6%

Source: Atresmedia's financial statements

YoY

+1.1%

-5.0%

+18.0%

+15.9%

2019 Results	37

Additional information

Investor Relations Department

APMs

Phone: [phone]

E-mail: [e-mail]

Web: www.atresmediacorporacion.com

In compliance with the guidelines issued by the European Securities Market Authority (ESMA) on Alternative Performance Measures (henceforth "APMs"), the Group publishes supplementary information in order to enhance the comparability, reliability and understanding of its financial disclosures.

The Group discloses those APMs it considers appropriate and useful for users' decision-making processes. APMs disclosure can be found in the Quarterly Earnings Report of the period corresponding to this presentation

Legal Notice

The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modifications.

None of the Company, its shareholders or any of their respective affiliates shall be liable for the accuracy or completeness of the information or statements included in this presentation, and in no event may its content be construed as any type of explicit or implicit representation or warranty made by the Company, its shareholders or any other such person. Likewise, none of the Company, its shareholders or any of their respective affiliates shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or distribute this presentation to any person.

The Company does not undertake to publish any possible modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Company, or occurrence of unforeseeable facts or events that affect the Company's strategy or intentions.

This presentation may contain forward-looking statements with respect to the business, investments, financial condition, results of operations, dividends, strategy, plans and objectives of the Company. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors, including political, economic and regulatory developments in Spain and the European Union, could cause actual results and developments to differ materially from those expressed or implied in any forward-looking statements contained herein.

The information contained in this presentation does not constitute an offer or invitation to purchase or subscribe for any ordinary shares, and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

2019 Results	38