Full Year 2014 Investor’s Briefing Financial and Operating ...data-careers.abs-cbn.com.s3.amazonaws.com/investorrelations/1432790799_presentation.pdfFull Year 2014 Investor’s Briefing

Full Year 2014 Investor’s Briefing Financial and Operating Results

March 19, 2015

ABS-CBN Investor Presentation 1

14,046 14,664

18,049 18,880

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2013 2014

Ad Revenues Consumer Sales


Revenues – Excl. Pol Ads

56% 56%

44% 44%

32,094 33,544 4.5%

4.6%

4.4%

For the year ended December 31, 2014

14,046 14,664

19,332 18,880

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2013 2014

Ad Revenues Consumer Sales


Revenues - Reported

58% 56%

42% 44%

33,378 33,544 0.5%

2.3%

4.4%


2014 revenues higher than the previous election year

Costs and Expenses


9,615 10,114

9,184 9,247

11,499 11,008

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2013 2014


Production

Costs

Cost of Sales

& Services

GAEX

4.3%

5.2%

0.7%

30,298 30,369 0.2%

Production costs down 4.3%

1,430

2,030

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014

32,095 33,544

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014

Financial Summary – Excl. Pol Ads


Net Revenues

In PHP Millions


Costs and Expenses Net Income

Excluding election-related advertisements, 2014 revenues grew by 4.5% due to the strong performance of broadcast group, films both locally and internationally and

further supported by the performance of Sky Cable.

4.5%

29,870 30,369

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014

1.7%

42.0%

33,378 33,544

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014

30,298 30,369

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2013 2014

Financial Summary


Net Revenues

In PHP Millions


2,028 2,030

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014

Costs and Expenses Net Income

0.5%

0.2%

0.1%

Business Segments – Excl. Pol Ads


In Php Millions Revenues EBITDA Net Income

2014 2013 % Ch 2014 2013 % Ch 2014 2013 % Ch

A. TV and Studio 25,555 24,804 3.0% 6,376 5,598 13.9% 2,976 2,137 39.3%

Margins 25.0% 22.6% 11.6% 8.6%

B. Pay TV Networks 7,764 6,937 11.9% 1,856 1,644 12.9% 272 247 10.1%

Margins 23.9% 23.7% 3.5% 3.6%

C. New Businesses 442 545 -18.9% -756 -899 -15.9% -1,218 -954 27.7%

D. Eliminations -217 -192

TOTAL 33,544 32,094 4.5% 7,476 6,343 17.9% 2,030 1,430 41.9%

Margins 22.3% 19.8% 6.1% 4.5%

*** Numbers presented are net of ABS-CBNmobile TVCs.

Our TV and Studio business has continued to strengthen…


Business Segments - Reported


In Php Millions Revenues EBITDA Net Income

2014 2013 % Ch 2014 2013 % Ch 2014 2013 % Ch

A. TV and Studio 25,555 26,087 -2.0% 6,376 6,452 -1.2% 2,976 2,735 8.8%

Margins 25.0% 24.7% 11.6% 10.5%

B. Pay TV Networks 7,764 6,937 11.9% 1,856 1,644 12.9% 272 247 10.1%

Margins 23.9% 23.7% 3.5% 3.6%

C. New Businesses 442 545 -18.9% -756 -899 -15.9% -1,218 -954 27.6%

D. Eliminations -217 -192

TOTAL 33,544 33,377 0.5% 7,476 7,197 3.9% 2,030 2,028 0.1%

Margins 22.3% 21.6% 6.1% 6.1%

*** Numbers presented are net of ABS-CBNmobile TVCs.


11,088 10,495

2013 2014

Direct Costs

TV and Studio - Broadcast


In PHP Millions

With the company’s continuous cost reduction initiatives, production costs declined by 5.3%. For primetime, Ch2 continues to lead in audience share receiving

49% share nationwide.

17,743 17,976

2013 2014

Net Revenues

5.3% 1.3%

Highest 3rd Primetime Slot Share 36.2% Finale and 30.8% Finale week

Highest rated program 34.9%

2014 Highlights

Introduced new talents



2014 Audience

Share

CHANNELS TOTAL DAY PRIMETIME

Total PH Mega

Manila Metro Manila

Total PH

Mega Manila

Metro Manila

ABS-CBN 2 44 31 33 49 34 37

GMA 7 34 40 35 32 40 35

TV 5 9 12 10 8 10 10

Others 14 18 23 11 17 20

Source: Kantar Media, January – December 2014

CHANNELS TOTAL DAY PRIMETIME

Total PH Mega

Manila Metro Manila

Total PH

Mega Manila

Metro Manila

ABS-CBN 2 42 30 32 47 33 35

GMA 7 33 38 35 31 38 35

TV 5 10 13 12 9 12 11

Others 15 19 22 13 18 20

2013 Audience

Share

ABS-CBN has further solidified its leadership in terms of national total day and primetime audience share



Source: Kantar Media, January – December 2014

2014 Top 10 Programs

Rank Channel Program Share

1 ABS-CBN THE VOICE KIDS SUNDAY 34.9 Weekend

2 ABS-CBN THE VOICE KIDS SATURDAY 34.0 Weekend

GMA 7 Pacquiao versus Algieri 34.0 Weekend

3 ABS-CBN HONESTO 31.7 Weekday

4 ABS-CBN MARS RAVELO'S DYESEBEL 30.1 Weekday

5 ABS-CBN BOSES NG BULILIT KAMI ULIT! 28.9 Weekend

6 ABS-CBN IKAW LAMANG 28.4 Weekday

7 ABS-CBN GOT TO BELIEVE 28.3 Weekday

8 ABS-CBN HAWAK KAMAY 28.1 Weekday

9 ABS-CBN MMK ANG TAHANAN MO 28.0 Weekend

THE VOICE OF PH 28.0 Weekend

10 ABS-CBN PBB ALL IN 27.9 Weekend

5,527 5,651

2013 2014

Net Revenues

TV and Studio - Global


Global Viewership

The success of international releases played a major role in boosting the revenue of our Global business (12 movies screened across the Global Regions in 2014 vs 8 in 2013)

In PHP Millions

3,341 3,399

2013 2014

Cost of Sales and Servies

2.2% 1.7%

Anti-Piracy Initiatives

$12M federal lawsuits filed against 18 pirate sites

$10M judgment won in Oregon, USA

Search and seizure of pirate DVDs from Mary Smith in Australia

$25M anti-piracy legal victory in New Zealand

2,449 2,522

2,786 2,844

2011 2012 2013 2014

Global Events

586 598

2013 2014

Costs of Sales and Services

1,158 1,355

2013 2014

Net Revenues


The group’s margin continue to improve with the steep increase in revenues by 17% driven by strong local theatrical sales of Star Cinema movies. In 2014, the group released and distributed a total of 16 movies.

TV and Studio - Films and Music

In PHP Millions

2.0%

17.0%

3 movies breached the Php 300M mark Mounted one of the most successful concerts

for the year.

Albums released

Pay TV Networks - SkyCable

6,937 7,764

2013 2014

Net Revenues


In PHP Millions

Total revenues grew by Php 827M driven by a 8% increase in cable revenues and 37% increase in broadband revenues. Our broadband subscriber base continues to expand, growing by 24% in 2014.

11.9%

4,484 5,014

2013 2014

Costs and Expenses

11.8%

842 874

-

200

400

600

800

1,000

1,200

2013 2014

Tho

usa

nd

s

Over 40 HD channels currently being offered

2014 Cable and Broadband Subscribers

Cable + Broadband

• Implementing Rules and Regulations released

last December 17, 2014.

• Launched February 2015.

• More than 200,000 boxes to date.

• Target: 1M boxes by year-end.

Digital Terrestrial TV (DTT)


- Viewing clarity

- New channels

- No monthly fee

TRANSFORMATIVE

EXPERIENCE FOR THE FAMILY

A Complete Range of Entertainment & Information Content



Over 1.5M subs as of

end December 2014

with ARPU of Php 65

Exclusive Mobile Content Partnerships

Capital Expenditures - 2014


In P

HP

Mill

ion

s

593

2,308 2,684

-

500

1,000

1,500

2,000

2,500

3,000

Program Rights Pay TV Digital TV,Maintenance and Others

Total Spent of Php 5.6 billion in 2014

Capital Expenditures – 2015 Budget


In P

HP

Mill

ion

s

1,212

3,149

4,095

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Program Rights Pay TV Digital TV,Maintenance and Others

Budgeted Php 8.5 billion in 2015

Balance Sheet Highlights


Ratios 2013 2014

Current 1.8 2.1

Debt-to-Equity 0.6 0.8

Net Debt-to-Equity 0.2 0.3

In PHP Millions

58,330 67,237

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2013 2014

Total Assets

14,680 20,325

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 2014

Total Borrowings

25,923 26,875

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 2014

Equity

10,617 13,238

0

5,000

10,000

15,000

20,000

2013 2014

Cash

Except for historical and operating data and other information of historical matters, the statements contained herein are “forward-looking statements”. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words are frequently used to indicate these forward looking statements. Any such forward-looking statement is not a guarantee of future performance and involves a number of known and unknown risks, uncertainties and other factors that could cause the actual performance, financial condition or results of operation of ABS-CBN to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement.


THE END


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Full Year 2014 Investor’s Briefing Financial and Operating ...data-careers.abs-cbn.com.s3.amazonaws.com/investorrelations/1432790799_presentation.pdfFull Year 2014 Investor’s Briefing