4T14AztecaENG - TV Azteca - Relación con Inversionistas · 18 18 Azteca Comunicaciones Colombia In...

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Transcript of 4T14AztecaENG - TV Azteca - Relación con Inversionistas · 18 18 Azteca Comunicaciones Colombia In...

Page 1: 4T14AztecaENG - TV Azteca - Relación con Inversionistas · 18 18 Azteca Comunicaciones Colombia In 2011, Azteca won a tender to build and operate fiber optic network to cover 80%

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March 2015

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The following information contains or may be deemed to contain, “forward-

looking statements” (as defined by the U.S. Private Securities Litigation

Reform Act of 1995). By their nature, forward-looking statements involve

risks and uncertainties because they relate to events and depend on

circumstances that may or may not occur in the future. The future results of

the issuer may vary from the results expressed in, or implied by, the following

forward-looking statements, possibly to a material degree. The Company

undertakes no obligation to update or revise any forward-looking statements.

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Combined income close to 1% of Mexico’s GDP

Close to 90,000 employees

Presence across the Americas: Mexico, US, Guatemala, Honduras, El Salvador, Panama, Brazil, Peru and Colombia

Social Responsibility

Telecommunications

Azteca in Grupo Salinas

MediaConsumer Finance and Retail

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Mexican Broadcast Market

Broadcast is dominant Broadcast market

Ps. Million

Broadcast TV

53%

Ps.72* billion or 0.5% of Mexican GDP

Print

9%

Radio

9%

Pay TV

8%

Internet

10%

Other

10%

*2013; estimated by Asociación de Agencias de Medios

2008 2009 2010 2011 2012 2013 2014

$30,668 $30,631$33,253 $34,227 $35,429 $36,614 $37,868

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Azteca

For the entire family

Novelas, entertainment, sports,

newscasts

Two thirds is internally

produced

For upscale young adults

Newscasts, sports, series,

blockbuster movies

One quarter of

programming is internally

produced

Pluralistic analysis with most

recognized voices

Documentaries, culture,

interviews, newscasts

Recently extended digital

coverage

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101 stations transmit local advertising

35 stations produce local content

Nationwide Coverage

346 stations throughout Mexico:

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Azteca America

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One of most popular sites in Mexico

Exclusive internet content

Over 13 million unique users per month

Azteca.com

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AZ TV de Paga

In addition to Mexico and the US, Azteca is present in Guatemala and Honduras through broadcast signals; and South America, Spain and Canada through pay TV systems,

reaching the homes of more than 160 million people

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Financial Overview

Net Sales Sales Breakdown

Ps. Million

2009 2010 2011 2012 2013 2014

$9,967$11,553 $12,199 $12,570 $12,058

$12,871

National: 79%

Azteca America: 7%

Local: 8%

Barter: 4%

Export: 1%

Colombia: 1%

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Hours Produced

Entertainment34%

News45%

Novelas8%

Sports13%

Over 20,000 hours in 2014

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Realistic telenovelas

Entertainment shows endorsing key values

Young sports commentators

Objective newscasts

Pluralistic social and political analysis

Thrilling purchased programming

Popular Content

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Mexican Soccer Broadcasting Rights

Broadcast rights for the home games of six teams in the First Division, and the national Mexican team

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Constant new talent developed to feed Azteca’s novelas, series and entertainment

production needs

Students learn for two years, 40 hours a week

Over 90% of graduates have participated in more than 300 Azteca productions

Talent Development School

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Costs Breakdown

Advisory fees

38%

Operating

expenses 30%

Services 3%

Personnel 27%

Travel expenses

2%

SG&A Expenses Breakdown

Ps. 7,459 million Ps. 1,641 million

Production

Costs

69%

Content

Purchases

30%

Broadcasting

Costs

1%

2014

Costs and Expenses Breakdown

Ps. Million

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EBITDA

Ps. Million

2008 2009 2010 2011 2012 2013 2014

$3,893 $4,122$4,723 $4,677 $4,483

$4,134$3,771

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Total debt with cost (includes debt due 2069) 11,394 14,040

Debt with cost (excludes debt due 2069) 10,195 12,687

Cash and cash equivalents (4,527) (5,511)

Net debt (includes debt due 2069) 6,867 8,529

Net debt (excludes debt due 2069) 5,668 7,176

As of December 31,

2013 2014

Debt with Cost

2015 2016 2017 2018 2019 2020 2069

Ps. Million

$4,373US$300

$7,208US$500

$1,353US$92

$1,106US$75

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Azteca Comunicaciones Colombia

In 2011, Azteca won a tender to build and operate fiber

optic network to cover 80% of the Colombian territory

Construction of network and commercialization of

telecommunications services in 788 municipalities

The Colombian government provides approximately

US$253 million, which is expected to be enough to

construct network

Fiber-optic deployed: 19,500 km,

equivalent to 95% of the total

People beneficiated: 3,150,000

Number of municipalities covered: 769

Value of sales contracts registered in 2014: US$180 million

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Azteca Comunicaciones Colombia

Conexiones Digitales:

• 144,000 points of access contracted

• 71,120 installed conections (49% progress)

• Presence in 467 of 617 minucipalities

• Goverment subsidy of US$30 million

Kiskos Vive Digital:

• Progress of 99% in the 1,753 kiosks project, 1,745 installed

• Presence in 11 estates

• Subsidy of US$91 million for four years

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Azteca Comunicaciones Peru

Fiber-optic to deploy: 13,400 km

People beneficiated: 3,500,000

Estimated time of construction: 18 months

Activities during the fourth quarter:

Construction started on December 2014

First delivery: March 17, 2015

Suppliers were selected

Environmental permits and municipality and

electric companies licenses obtained

Issue bond for US$275 million at present value,

non-recourse to Azteca.

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Outlook

Smash programming production

Solid cash balance to capture potential market opportunities

Azteca Colombia to be fully operational this year, with growing top line

Peru poised to further diversify revenue and profitability

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March 2015