ABS-CBN Corporation Sgt. Esguerra Avenue, Quezon City, Philippines 12 May 2016 Philippine Dealing and Exchange Corporation 37 th Floor, Tower 1, The Enterprise Center 6766 Ayala Avenue corner Paseo de Roxas Makati City Attention: Subject: Ms. Vina Vanesssa S. Salonga Head Issuer Compliance and Disclosure Department ABS-CBN 1Q 2016 Investor s Briefing Presentation Materials -------------------------------------------------------------------- Dear Ms. Salonga, We are submitting ABS-CBN Corporation s 1Q 2016 Investor s Briefing presentation materials. Thank you.
Q1 2016 Investors Briefing Financial and Operating Results May 12, 2016
In PHP Millions Revenues 12,000 10,000 8,326 9,795 18% 8,000 6,000 4,255 5,582 31% 4,000 51% 57% 2,000-4,071 4,213 49% 43% 3% Ad Revenues Consumer Sales 2
In PHP Millions Costs and Expenses 9,000 8,639 14% 8,000 7,556 7,000 Production 2,961 12% 6,000 2,648 Costs 5,000 4,000 3,000 2,574 Cost of Sales & Services 2,833 10% 2,000 1,000 2,334 GAEX 2,845 22% - 5
Financial Summary In PHP Millions Net Revenues EBITDA Net Income 12,000 10,000 18% 5,000 4,500 4,000 5,000 4,000 8,000 3,500 3,000 3,000 6,000 4,000 2,000-8,326 9,795 2,500 2,000 1,500 1,000 500-1,823 19% 2,163 2,000 1,000-34% 569 761 9
Financial Summary In PHP Millions Net Income Attributable to Parent 900 800 26% 700 600 500 400 300 200 100-668 839 10
Business Segments TV and Studio s remain strong with increase in net income of 19% In Php Millions Revenues EBITDA Net Income % Ch % Ch % Ch A. TV and Studio 7,219 5,924 22% 1,932 1,658 17% 1,072 901 19% Margins 27% 28% 15% 15% B. Pay TV Networks 2,069 1,960 6% 458 411 11% 23 19 21% Margins 22% 21% 1% 1% C. New Business 507 442 15% -227-246 8% -334-351 5% TOTAL 9,795 8,326 18% 2,163 1,823 19% 761 569 34% Margins (net of DTT Sales) 23% 23% 8% 7% * Numbers presented are net of ABS-CBNmobile TVCs. 11
TV and Studio Free-to-Air In PHP Millions Net Revenues Production Costs 30% 12% Two programs added which helped boost revenues 4,069 5,281 2,702 3,019 *Net of ABS-CBNmobile TVCs 1Q 2016 Programs 12
Audience Share TOTAL DAY Audience Share Total PH Mega Manila Metro Manila ABS-CBN 2 44 31 35 GMA 7 35 42 36 TV 5 7 7 6 TOTAL PRIMETIME Audience Share Total PH Mega Manila Metro Manila ABS-CBN 2 and Sports + Action 49 35 40 GMA 7 32 42 36 TV 5 6 7 6 Source: Kantar Media TV Measurement 14
Top Programs Rank Channel Program Ratings 1 ABS-CBN FPJ'S ANG PROBINSYANO 41.2 Weekday 2 ABS-CBN PILIPINAS GOT TALENT SUNDAY 35.1 Weekend 3 ABS-CBN PILIPINAS GOT TALENT SATURDAY 34.9 Weekend 4 ABS-CBN DOLCE AMORE 34.5 Weekday 5 ABS-CBN MMK ANG TAHANAN MO 32.9 Weekend 6 ABS-CBN WANSAPANATYM 29.5 Weekend 7 ABS-CBN TV PATROL WEEKDAY 28.3 Weekday 8 ABS-CBN HOME SWEETIE HOME 24.3 Weekend 9 ABS-CBN RATED K HANDA NA BA KAYO? 23.7 Weekend 10 GMA PEPITO MANALOTO ANG TUNAY NA KUWENTO 21.4 Weekend Source: Kantar Media TV Measurement, March 2016 16
TV and Studio Global In PHP Millions Net Revenues 17% Cost of Sales and Services 23% Global Viewership 3,085 3,097 1,311 1,529 1,106 1,359 2,786 2,844 2013 2014 2015 YTD 2016 ABS-CBN and TFC kicked off the first quarter of 2016 with major events TFC @ the Movies brought two highly rated Filipino Films to North America, Europe and Middle East 17
TV and Studio - Films and Music In PHP Millions Net Revenues 17% 462 380 Costs of Sales and Services 12% 187 210 Beauty and the Bestie is now the highest grossing film of all time in the Philippines 1Q 15 Box Office Receipts 1Q 16 Box Office Receipts Praybeyt Benjamin 2 455 Beauty and the Bestie 529 Feng Shui 244 All You Need is Pag-ibig 37 Halik sa Hangin 28 Everything About Her 151 Crazy Beautiful You 271 Always be my Maybe 105 Hele sa Hiwagang Hapis 4 18
Thousands Pay TV Networks - SkyCable In PHP Millions Net Revenues Costs and Expenses 6% 5% 1,960 2,069 1,909 2,005 SKY broadband revenues grew 44% in 2016. Direct-to-home license released last December 2015 200 150 Broadband Subscribers 154 143 100 50-2015 19
Digital Terrestrial TV (DTT) More than 1.2 milion boxes sold to date. Bacolod transmitter operational in March 2016 COVERAGE AREA Benguet Pangasinan Tarlac Nueva Ecija Pampanga Bulacan Metro Manila (3) Rizal Cavite Laguna Metro Cebu Bacolod 20
1Q 16 Visitor Attendance Recently launched: Art and Design Academy Kids can now see the world they run in a whole, new colorful light with the opening of the National Art and Design Academy. In partnership with National Bookstore and Dong-A, the play city now has maestros creating masterpieces and expressing themselves artistically. 21
In Thousands 600 100 101 100 550 96 98 99 98 97 96 95 500 January February March 94 EOP ARPU ABS-CBN Mobile Exclusive Content and iwant TV Videos on Demand 22
In Millions Php Monthly Revenue 80 70 60 50 40 30 2016 2015 20 10 0 Jan Feb Mar Lifestyle Stone Cookware Set Kitchen-Art Wide Grill Elishacoy Magic Lipstick ILO Ceramic Pot Elizabeth London Premium Towel 23
In Millions Php Capital Expenditures Spent Php 1.1B out of the Php 8.8 budget for 2016 4500 4000 3500 3000 2500 2000 1500 3,043 3,672 1000 500 0 915 265 326 558 Program Rights Pay TV Digital Initiatives, Maintenance and Others Remaining Balance 25
Balance Sheet Highlights In PHP Millions Total Assets Total Borrowings Equity 80,000 30,000 30,000 70,000 60,000 50,000 25,000 20,000 25,000 20,000 40,000 30,000 20,000 10,000 70,424 71,818 15,000 10,000 5,000 20,530 20,538 15,000 10,000 5,000 28,715 28,971 0 2015 0 2015 0 2015 Ratios 2015 2016 Current 1.88 1.79 Debt-to-Equity 0.7 0.7 Net Debt-to-Equity 0.3 0.3 26
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. 27
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