CLSA ASEAN FORUM 7-9 MARCH 2018 BANGKOK, THAILAND Company Overview - - PowerPoint PPT Presentation

CLSA ASEAN FORUM

7-9 MARCH 2018 BANGKOK, THAILAND

Company Overview Financial Highlights Industry and Competitive Landscape Summary

Business Segments

Media Networks & Studio Entertainment Cable, Satellite & Broadband Digital & Interactive Media Consumer Products & Experiences

• Pay TV (Cable &

Satellite)

• Broadband
• Online
• Mobile
• Over-the-Top
• Live events
• Theme park
• Home shopping
• ABS-CBN stores
• Free-to-Air
• Entertainment
• News
• Sports
• DTT
• Global
• Film & Music
• Cable Channels
• Publishing
• Licensing
• Radio

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Revenue Mix

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For the nine months ended September 30, 2017

Advertising Revenue Consumer Sales

23% 13%

Sky Global

48%

46%

Kidzania/Retail/Others Films DTT 5% 4%

3%

12%

52%

Broadcast & News

2%

S&A Global, & DTT

3%

Others

1%

Digital

Free-to-Air TV

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• Consistent leader in national

audience shares and ratings among 13 FTA channels.

• ABS-CBN Free-to-air TV

advertising revenues account for more than 80%

• f company’s total

advertising revenues.

• Primetime shows contribute

77% of total Channel 2 airtime revenues.

TOTAL DAY NATIONAL AUDIENCE SHARE

Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week

CHAN N EL 2016 9M 2017

ABS-CBN* 44.70 46.19

GMA 7 33.80 33.39 TV 5 6.50 5.12 Other FTA 4.10 3.51 Other Cable 6.50 6.65

* ABS-CBN Channel 2 only.

Source: Kantar Media TV Audience Measurement – Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week

Free-to-Air TV

* ABS-CBN Channel 2 only.

42 42 44 43 45 45 31 33 34 36 34 34 12 11 9 7 7 6 2012 2013 2014 2015 2016 1H 2017

AUDIENCE SHARE % TOTAL DAY

ABS-CBN 2 GMA 7 TV 5 48 47 49 50 49 49 28 31 32 31 33 33 11 9 8 7 7 6 2012 2013 2014 2015 2016 1H 2017

AUDIENCE SHARE % PRIMETIME

ABS-CBN 2 GMA 7 TV 5 6

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Digital Terrestrial Television

COVERAGE AREA Benguet Pangasinan Tarlac Nueva Ecija Pampanga Bulacan Metro Manila (3) Rizal Cavite Laguna Metro Cebu Davao Bacolod Cagayan De Oro Iloilo

• Launched Feb. 2015; first-mover advantage
• More than 3.6 million boxes cumulative sold as of Sep 2017
• YTD average of 160k boxes sold per month at P1,499/box

(~US$30/box)

• Significantly improved reach in Mega Manila and Central Luzon
• Incremental advertising revenues expected from:
• increase in ratings for existing channels
• additional four free-to-air channels

2,204 2,372 2,527 2,697 2,829 2,985 3,158 3,139 3,474 3,655

2016 Jan Feb Mar Apr May Jun Jul Aug Sep

DTT CUMULATIVE SALES (IN 000's)

0.21 0.69 1.30

2015 2016 1H2017

Yey Audience Shares (in %)

DTT: A Complete Range of Entertainment & Information Content

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2 FTA (CH2 & CH23) + Additional 4 Channels

(available only on ABS-CBN TVplus) Channel Genre News/ Public Affairs Movies (Tagalog) Kids Edutainment Educational Programs Content Description Live broadcast of radio format programs on TV, with news and public affairs component An all-day Filipino Movie Channel that offers a wide variety of action and comedy movies featuring “Pinoy” idols An all-day Kids’ Channel that features a mix of wholesome action, fun, adventure and edutainment programs for boys and girls Curriculum-based programs and content for primary and secondary levels

Source: Kantar Media TV Measurement, Total Philippines Average Audience Share 2015-2017

0.34 1.09 2.50

2015 2016 1H2017

Cinemo Audience Shares (in %)

3Q2017 3Q2017

DTT : Changing the distribution landscape

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Total Philippines – TV Households Mix by Platform

Source: Kantar Media - July- September 2017

Total Philippines Urban Philippines Mega Manila Metro Manila HOMES (in Thousands) 18,935 9,857 5,267 3,032 CABLE or DTT HOMES 36.1% 44.6% 63.3% 78.1% Cabled Homes 23.8% 24.1% 27.5% 38.3% DTT Homes 12.3% 20.5% 35.8% 39.8% NON CABLE & NON DTT HOMES 63.9% 55.4% 36.7% 21.9%

ASIA AFRICA OTHERS Cambodia Kenya Mexico Indonesia Nigeria Peru Malaysia Seychelles Kazakhstan Myanmar Tanzania Thailand Uganda Vietnam Middle East

Global

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• ABS-CBN content distributed to Filipino

subscribers abroad.

• Overall viewership of more than 3.1 million as
• f September 2017
• Program Syndication
• Revenue Streams:
• Subscription
• Cable
• DTH
• IPTV
• TFC.tv
• Movie Screening
• Shows / Events
• Remittance

Program Syndication Territories

70 114 142 9M 2015 9M 2016 9M 2017

Program Syndication

+ 25% + 62%

Film Production and Distribution

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• Star Cinema - Leading local film producer;

about 16 films for theatrical release per year

• Revenue Streams:
• Local and international theatrical sales
• Program rights from cable, and
• FTA, OTT, international sales, DVD sales,

merchandising

• One movie can generate up to Php 600M

in ticket sales locally and over US$ 2M

• verseas
• Revenue sharing with theaters ~ 50%
• Growth strategies
• Partnerships to operate theaters (e.g.

Citymalls)

• Open new territories (e.g. Malaysia,

Vietnam), and

• Subtitling in foreign languages to broaden

reach

Local Theatrical Receipts 9M2017 Local and Foreign Theatrical Receipts 9M2017

Star Cinema 98% Others 2% Star Cinema 28% Others 2% Foreign Films 70%

Sky Current Network:

• Homes passed:
• Cable: 2.1m
• Broadband: 1m
• DTH nationwide reach

147,000 520,000

UNIQUE SUBSCRIBERS AS OF SEPTEMBER 2017

Cable, Satellite & Broadband

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AS OF SEP 2017 SUBSCRIBERS ARPU

Cable * 609,000 PHP 571 DTH 295,000 PHP 129 Broadband 205,000 PHP 1,128

TOTAL 1,109,000

Cable, Satellite & Broadband total revenues grew by P438M or 7% driven by the 24% increase in overall Sky subscribers

Fiber-powered broadband Up to 8MBPS Up to 16MBPS + Cable Channels: HD Cable TV 10HD; 30SD 10HD; 30SD + Mobile Internet 1GB 1GB Monthly Fee PhP1,799 (US$35) PhP2,199 (US$43)

One Sky Plans (Sample)

667,000

Two-play One-play

* Excludes free tier subscribers

Activity Platform N

• . of

Subscribers Watching 904,944 Watching (Overseas) 72,617 Watching 63,250 Listening and watching 40,971 Reading* 253,768 Movie Community 1,058,000

*Unique users of No Ink app monthly

Digital and Interactive Media

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ABS-CBN.com remains the #1 Philippine based website across all categories in the Philippines.

iWant TV and TFC.tv with close to

8.8M and 73k active subscribers as

• f September 2017

ABS-CBN digital properties

revenue in 2017 up 26% versus last year

ABS-CBN Mobile with close to

946,000 subscriber count as of

September 2017

3,526 6,282 8,858 9M 2015 9M 2016 9M 2017

+ 41% + 78%

349 607 945 9M 2015 9M 2016 9M 2017

+ 56% + 74%

Digital and Interactive Media Initiatives

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Platform

• No. of

Followers/Talents YTD 2017 Revenues 2016 Revenues % Variance 16,321,300 65,156,934 23,916,990 +172% 7,609,267 176,344,382 111,810,605 +58% 378 talents 26,856,697 16,947,571 +58% 550 talents 33,183,740 6,130,571 +441%

Programmatic

N/A 49,935,158 28,083,558 +78%

Consumer Products and Experiences

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• ABS-CBN has franchise for the Philippines
• Opened August 7, 2015
• 10,000 sq. m. indoor facility at the Bonifacio

Global City with 1,500 visitor capacity

• With 66 establishments and 50 industry

partners as of to date  Optimize content experience:

• FreeZtyle Play
• BooZt: Star Magic Workshop, Summer Camp,

Sports Camp

• New Establishments in 2017: Film

Academy, Museum, Disaster Preparedness Center

Generated P324M in total revenue in 9M of 2017,

224k attendance as of September.

Consumer Products and Experiences

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• Continuously offers new products and promos to assure

quality home TV shopping and online experience

• Generated P632M in revenues, 2% higher in 9M of

2017. O Shopping Products

476 617 632 9M 2015 9M 2016 9M 2017

O-Shopping Revenue

+ 2% + 23%

Consumer Products and Experiences

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Our events bring the ABS experience closer to our audiences with over P218M revenues generated in 9M of 2017.

• Licensed fan merchandise line for various ABS-

CBN TV programs

• Licensed on-ground activation for UAAP Volleyball
• Launch of Ravelo Komiks Superheroes brand
• Floor area of ~670 sqm inside a major shopping mall
• Capacity of ~2,000 visitors per day
• Themed Products and customized offerings (e.g.

interaction with celebrities, game shows, etc.)

• Target opening date: Q2 2018

ABS-CBN INTERACTIVE ENTERTAINMENT- BASED RETAIL EXPERIENCE STORE

Customer Relations Management (CRM)

Our Enterprise Customer Database (ECD) contains contact information and viewing activity of our ‘known’ Kapamilyas

Global:

• TFC.tv
• IPTV
• DTH
• Films
• Remittance
• Cargo
• Concerts/events

Touchpoints:

Local:

• TV
• Radio
• Films
• Music
• Cable TV/DTH
• DTT
• Mobile
• Broadband
• Liveshows
• iWanTV
• Social Media
• abs-cbn.com
• ABS-CBN Online &

Retail Stores

• O-Shopping
• Kidzania
• Magazines/books
• Concerts/events
• Mall tours

ECD 12.6 M

Customers Introduced loyalty program in July 2017 with more than 2.6 million registered members to date.

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Company Overview Financial Highlights Industry and Competitive Landscape Summary

Financial Summary

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For the nine months ended September 30, 2017 In millions PhP

6,151 7,410 7,035 9M 2015 9M 2016 9M 2017

EBITDA

27,761 31,166 29,512 9M 2015 9M 2016 9M 2017

Revenue

1,894 2,848 2,267 9M 2015 9M 2016 9M 2017

Net Income

• 5%
• 5%
• 20%

+ 12% + 20% + 50%

7% 9% 8% 22% 24% 24%

Margins

Business Segment Report

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For the nine months ended September 30, 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 Media Networks & Studio Entertainment 23,652 21,248 3,179 2,556 3,270 2,605

Margin 13% 12% 14% 12%

Cable, Satellite & Broadband 6,411 6,849 69 75 44 54

Margin 1% 1% 1% 1%

Digital & Interactive Media 491 839 (361) (306) (202) (206) Consumer Products & Experience 612 575 (39) (58) (16) (41) N et Income N I Attributable to Parent Segment Operating Revenue

908 1,038 1,422 2,216 3,197 4,652

3Q 2017 2017 LE

Program Rights Cable, Satellite & Broadband Digital initiatives, Maintenance & Others

Spent and committed Php 5.5B for 9M; Php 7.9 FY 2017 estimate

5,522 7,906

Capital Expenditures

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Balance Sheet Highlights

In millions PhP For the nine months ended September 30, 2017

70,424 72,734 72,877 2015 2016 9M 2017

Total Assets

Ratios 2015 2016 9M 2017 Current 1.88 2.02 2.18 Debt-to-Equity 0.71 0.65 0.62 N et Debt-to-Equity 0.31 0.30 0.28

20,402 20,472 20,311 2015 2016 9M 2017

Total Borrowings

28,715 31,692 33,012 2015 2016 9M 2017

Equity

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Company Overview Summary Financial Highlights Industry and Competitive Landscape

Philippines: Age Demographics

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Source: http://www.indexmundi.com/philippines/age_structure.html https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html

Philippines: Media Landscape

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• Philippine household ownership of TV at 75% (17.8 million TV households)
• Metro Manila – Philippines’ primary urban market
• 13.1 M people (13% of total population)
• 3.0M TV households (17% of total TV households)

Sources: In-house media landscape study 2016; NSO

Total Philippines Metro Manila Cable TV penetration (among TV HHs) ~24% ~34% PC ownership (among total HHs) ~13% ~40% Internet access at home (among total HHs) ~13% ~41% Wireless Broadband ~6% ~12% Wired Broadband ~7% ~29% Mobile phone ownership (among total HHs) ~84% ~98% Mobile phone ownership (among 16+ population) ~60% ~83% Smartphone ownership ~30% ~61%

Philippines: Media Market

27 Source: Media Partners Asia, 2017

Total Advertising Spend 2016 (P70.9 B)

Source: Company Data

2016 Ad Spend By Industry

Free-to- Air 62%

Pay TV 6% Radio 13% Internet 10% Newspapers 4% Magazines 1% Outdoor 4% Others 0.3%

Alcohol & Tobacoo 4% Financial Institutions 2% Industry & Services 2% Entertainment 1%

Automotive 2% Govt Agencies 1% Others 2%

Telecom 4%

FMCG 82%

Company Overview Financial Highlights Industry and Competitive Landscape Summary

ABS-CBN: The Philippines’ leading media and entertainment company

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BUSINESSES

Free-to-Air √ √ √ Films and Music √ √ Global √ √ Remittance √ √ Publishing √ Pay TV √ √ Mobile √ √ Educational Theme park √ TV Shopping √

Note: TV 5 owned by First Pacific / PLDT Group

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.

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