November 23rd, 2010
GRUPO ANTENA 3Silvio González (CEO)
SPAIN INVESTORS DAY
2 Antena 3 – Spain Investors Day
TV consumption is still increasing
211213
218 217 217
223
227 227
231
2002 2003 2004 2005 2006 2007 2008 2009 2010e
TV consumption in Spain
+20 min/viewer
Source: Kantar Media
Average daily consumption in min
1
Some facts about TV
3 Antena 3 – Spain Investors Day
Young people return to TV, when they settle down
TV consumption from teenager to adult age
Source: Kantar Media
Average daily consumption in min. Spain
Some facts about TV
2
153
205
2000 2010e
25-44 yo
10 years older = more TV usage
+52 min
13-24 yo
4 Antena 3 – Spain Investors Day
Linear & non linear consumption
Source: Nielsen
%. US
Some facts about TV
Non-linear TV consumption is marginal so far
3
95% 93% 91%
9%7%5%
Q1 2008 Q1 2009 Q1 2010
Linear TV Non-Linear TV (timeshifted & video consumption)
5 Antena 3 – Spain Investors Day
Radio market share
Source: EGM. 2nd wave data
% of total Conventional Advertising Market
Some facts about Radio
Radio, no erosion from any other media
1
9.0% 9.1% 8.8% 9.1%8.7% 8.5%
9.0%9.3%9.5%
2002 2003 2004 2005 2006 2007 2008 2009 2010e
Very resilient
6 Antena 3 – Spain Investors Day
TV, the most efficient media1
New legal framework improves TV sector visibility3
Audience share fragmentation is a reality2
•TV, best mix coverage-cost•Positive outlook for TV in coming years
Antena 3, solid foundations to face new challenges4
Main ideas about the business
7 Antena 3 – Spain Investors Day
TV Radio Magaz. Newsp. Internet
88
5650
39 37
TV Radio Magaz. Newsp. Internet
In %
Coverage by media
TV, clear competitive position among the media
Source: Coverage: EGM 2nd survey 2010 / Prices: Internal estimates 9M10
TV maintains the best mix coverage-cost despite 2010 prices hike
2.7 2.6
7.37.6
13.2
CPT by media
In €
1
8 Antena 3 – Spain Investors Day
Positive outlook for TV in coming years
Nominal GDP +1.6%
Consensus TV Ad market +3.6%
Perfect correlationGDP = TV Ad
OverreactionGDP> TV Ad
Closing the gapTV Ad > GDP
TV Ad spend vs GDP
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Nominal GDP: Banco de España (2002-09); Funcas 2010-11, Ernest & Young 2012TV ad market= 2002-09: Infoadex; 2010-12: Consensus
Avg. 2010-2012 forecasts
TV ad market expected to grow over GDP in coming years
TV Ad market
Nominal GDP
1
TV Ad / GDP 0.31% 0.28% 0.23%
9 Antena 3 – Spain Investors Day
TV, the most efficient media1
New legal framework improves TV sector visibility3
Audience share fragmentation is a reality2
Antena 3, solid foundations to face new challenges4
• Number of channels has increased significantly• Strategy based in family of channels proved successful
to face fragmentation
Main ideas about the business
10 Antena 3 – Spain Investors Day
Audience share fragmentation is a reality
A3 T5 Veo TVSexta Net TV
HD
FTA Core channel
FTA ComplementaryChannels
Complementary Channels to come
Cuatro
Pay ComplementaryChannels
HD Channels HD
FORTA
HD
**
* Depending on the region
*
**
TVE
HD
Commercial FTA TVs Public FTA TVs
Very fragmented offer with more than 30 channels only in Free-to-Air TV
HD
Source : Kantar Media
2
11 Antena 3 – Spain Investors Day
Audiences: the value of a family of channels’ strategy
Development of a family of channels is key to face erosion from fragmentation
Source: Kantar MediaTotal individuals: 4+Nov10: At 21st Nov 2010
16.615.1
11.312.8
5.3
2.4
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
In %
Antena 3_Audience share
Antena 3 Group
Antena 3
Neox+Nova+Nitro
2
Antena 3’s family of channels
12 Antena 3 – Spain Investors Day
TV, the most efficient media1
New legal framework improves TV sector visibility3
Audience share fragmentation is a reality2
Antena 3, solid foundations to face new challenges4
•Relevant changes have reduced sector uncertainties
Main ideas about the business
13 Antena 3 – Spain Investors Day
New legal framework increases TV sector visibility
Relevant changes in the sector have reduced uncertainties
TVECommercial
approach
2010New legal framework2009
3
Disperse legal
framework
ConsolidationNot allowed
Audiovisual Law
ConsolidationAllowed under
certain conditions
TVEPublic service
approach
14 Antena 3 – Spain Investors Day
TV, the most efficient media1
New legal framework improves TV sector visibility3
Audience share fragmentation is a reality2
Antena 3, solid foundations to face new challenges4
•Family of channels strategy•Open to new TV contents and ways of advertising•Flexible cost approach•Business diversification•Antena 3.0 strategy
Main ideas about the business
15 Antena 3 – Spain Investors Day
Family of channels strategy
Providing a full spectrum of targets Advertising bundling: Unique simultaneous advertising across the four
channels at the same rate
Male Female
55-64
4-12
Age Advertising bundling
4
More coverage
Premium prices in every channel
16 Antena 3 – Spain Investors Day
Open to new TV contents & advertising
Adapted to new TV contents and ways of advertising
Productdefinition
Production & Contents
ProgrammingGrid
Distribution Advertising
2010
1990
Multichannelproducts
Acquisitions& internal productions commisioned to third parties
Multichannel FTA / Pay TV
One-channel products Acquisitions
& in house productions
One FTA channel
Traditionalspot
Integrating ads into the content
TV
TVInternetMobile
4
17 Antena 3 – Spain Investors Day
Flexible cost approach
Changes in the industrial area of the business aiming at increasing flexibility in costs
Production services
Programming
Contentpurchase
Product definition
Externalizationprocess
A3’s TV businessin 2009
Programming
Contentpurchase
Product definition
A3’s TV businessin 2010
2009-2010
Outsourcedservices
450 employees (>30% TV workforce)
10% avg cost reductionin next years
3 years payback on severance pay
4
18 Antena 3 – Spain Investors Day
Business diversification
Diversification favours cross-media promotions and provides revenues stability
TV RADIO INTERNET CINEMA
MULTIMEDIA GROUP
Coverage Frequency Segmentation Exclusivity
4
19 Antena 3 – Spain Investors Day
Antena 3.0 strategy
Developing Antena 3.0 strategy
Television InternetMobile
Agreements with main TV manufacturers: A3 to have privileged position in connected TV’s
Distribution agreements with digital platforms.
New web launched in June 10
New contents: 30% exclusive web content
Exploitation of library. VoD in test period Last 7-days catch-up
service
Development of apps for smartphones and tablets
4
20 Antena 3 – Spain Investors Day
“TV is alive and kicking”
Conclusions
Fragmentation is better faced with a “family”
Better rules make better players
Antena 3, challenges are opportunities
GRUPO ANTENA 3This presentation can be downloaded from our website:www.grupoantena3.com
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