fourth quarter results 2008 · 4q07 4q08 ‐83 ‐109 4q07 4q08 2 0 0 9 cable tv & internet...

Grupo Clarín

(GCLA)

Fourth Quarter Results 2008March 11, 2009

Investor Relations – http://www.grupoclarin.com/ir

Disclaimer

F d L ki St t tForward Looking Statements

Certain information included in this presentation may contain projections or other forward‐looking statements regarding future events or the future financial performance of Grupo Clarín.g g g p pYou can identify forward‐looking statements by terms such as “expect”, “believe”, “anticipate”,“estimate”, “intend”, “will”, “could”, “may” or “might” the negative of such terms or other similarexpressions. These statements are only predictions and actual events or results may differ

t i ll G Cl í d t d t k i t d t d t k bli ti t d t

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materially. Grupo Clarín does not undertake or intend to undertake any obligation to updatethese statements to reflect events and circumstances occurring after the date hereof or toreflect the occurrence of unanticipated events. Many factors could cause the actual results todiffer materially from those contained in Grupo Clarín’s projections or forward‐looking

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statements, including, among others, general economic conditions, Grupo Clarín’s competitiveenvironment, risks associated with operating in Argentina, rapid technological and marketchange, and other factors specifically related to Grupo Clarín and its operations.

E S U L T S ‐M A

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Agenda

Argentina – Macroeconomic Environment – Latest Events

Sales & EBITDA GrowthSales & EBITDA Growth

Financial Debt

Cable TV & Internet Access

Printing & Publishing

B d ti & P i2 0 0 9

Broadcasting & Programming

Digital Content & OthersA R C H 11

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g

Ownership Structure & Corporate Governance

E S U L T S ‐M A

Q & A Session3

4 Q 0 8 R E

Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session4

4 Q 0 8 R E

2007 & 2008, qoq figures

Income Statement

458+15%

28 2%1 625+28%

Exhibit 1: Net Sales% qoq, AR$ MM

Exhibit 2: Adjusted EBITDA1

% qoq, AR$ MM

99100478 51399

458 28.2%

31.5%

432

324

234

42381,266

1,625

100

244 311354

234

722 93768%

‐44Q07 4Q08

‐109‐834Q07 4Q08

2 0 0 9

Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations EBTIDA Margin

Net Sale Comparison EBITDA Comparison+24%A

R C H 11

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Dec ‐ 07

5,736Dec ‐ 08

Net Sale Comparison

4,384+31%

1.675

1.351Dec ‐ 07

Dec ‐ 08

EBITDA Comparison

E S U L T S ‐M A

1 We define Adjusted EBITDA as net sales minus costs of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization)

5

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Source: Company Information

2007 & 2008, yoy figures

Income Statement

1 675+24% 29.2%5 736+31%

Exhibit 3: Net Sales% yoy, AR$ MM

Exhibit 4: Adjusted EBITDA1

% yoy, AR$ MM

320

1591

341,351

1,675+24%

30.8%166

1384,384

1,038

5,736+31%

286140

784138

1,174

1,520

8901,196

2,6133,417

71%

2 0 0 9

2007 2008‐405‐325

,

A R C H 11

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2007 2008

Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations EBTIDA MarginE

S U L T S ‐M A

1 We define Adjusted EBITDA as net sales minus costs of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization)

6

Digital Content & Others Eliminations EBTIDA Margin

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Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session7

4 Q 0 8 R E

Financial DebtExhibit 5: Key Financial Ratios 873 MM USD t 3 45 ARS/ USDExhibit 5: Key Financial RatiosAR$ MM

873 MM USD at 3.45 ARS/ USD

FY08 FY07 % ch. yoy 9M08 % ch. qoq Total Gross DebtOutstanding* 3.013,3 2.981,2 1,1% 2.915,1 3,4%Total Gross Debt Incl. Interests 3.057,4 3.018,4 1,3% 2.978,8 2,6%Total Net Debt 2.589,8 2.452,9 5,6% 2.552,2 1,5%

Exhibit 6: Debt Profile

Net Debt/ AdjustedEBITDA 1,5x 1,8x ‐14,8% 1,6x ‐2,1%% US$ Debt 83,6% 80,4% 3,9% 81,3% 2,8%

160

873Seller Notes – Grupo Clarín (1)

Seller Notes ‐ Cablevisión (1)

Others

Exhibit 6: Debt ProfileUS$ MM, Balance Sheet

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16.4% ARS

27374747

798

160 149

65

132109

79 81

Others

A R C H 11

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74

27487 76

65

1

E S U L T S ‐M A

2009 2010 2011 2012 2013 2014 2015 2016 2017 Total

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* Includes Bank Overdraft. Does not include: Interests and Related Parties.

(1) Reflects the option to extend USD 102 MM Grupo Clarín’s FRN and USD 68 MM Cablevisión’s Seller Notes originally maturing in September 2009

Financial DebtExhibit 7: 2009 Debt Profile as of March 11 2009(1)

Seller Notes – Grupo Clarín (1)

Others

Exhibit 7: 2009 Debt Profile as of March 11, 2009(1)US$ MM, Balance Sheet

2009: 86 MM USDIn pesos (33%): 28 MM USD

186

OthersARTEAR: 4 MM USDAGEA: 22 MM USDCIMECO: 3 MM USD

33% ARS

1

84

11

39

1125

In dollars (67%): 58 MM USDSeller Notes GC: 1 MM USDMC‐CV Bonds: 18 MM USDGCSA 20 MM USD

Total 2009

1Q09 2Q09 3Q09 4Q09

2 0 0 9

GCSA: 20 MM USDOthers: 19 MM USD

A R C H 11

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Total Debt 86 MM USD

2009 Outlook

E S U L T S ‐M A

(‐) Debt in ARS 28 MM USD Forward Contract 63 MM USD

(‐) Revolving Debt 20 MM USD Coverage (%) 166%

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Exchange rate = 3.45 ARS/ USD. Source: Company Information.

(1) Reflects the option to extend USD 102 MM Grupo Clarín’s FRN and USD 68 MM Cablevisión’s Seller Notes originally maturing in September 2009

(=) Debt in USD 38 MM USD

Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session10

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Cable TV & Internet Access IRevenues & Costs

722

Exhibit 8: 4Q07AR$ MM


93730%722

324

937

401

30%

24%

154 22546%33.8% 33.2%

244 31127%

2 0 0 9

Net Sales Cost of Sales

Selling & Adm.

Expenses

EBITDA Net Sales Cost of Sales

Selling & Adm.

Expenses

EBITDA

A R C H 11

th, 2

Dec ‐ 07

Net Sale Comparison

2,613+31%

890Dec ‐ 07

EBITDA Comparison +34%

E S U L T S ‐M A

11EBTIDA Margin

3,417Dec ‐ 08 1.196Dec ‐ 08

4 Q 0 8 R E


Cable TV & Internet Access IRevenues & Costs

2 613

Exhibit 10: FY07AR$ MM


3 41731%2,613

1 123

3,417

1 461

31%

30%1,123 1,46130%

600 76127%34.1% 35.0%

2 0 0 9

890 1,19634%

A R C H 11

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Selling & Adm.

EBITDA EBITDASelling & Adm.

Net Sales Cost of SalesE

S U L T S ‐M A

Expenses

12

ExpensesEBTIDA Margin4

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Cable TV & Internet Access IIKey Ratios

Exhibit 12: Cable Subs‘000s

+6%Cablemodem

+24%

Exhibit 13: Internet Subs‘000s

+1813,1913,022

+6%

+168 758

903

+24%939

+35%

+181

4Q07 4Q08

670

4Q07

903

4Q08

+219

Exhibit 15: Total ARPUAR$

Exhibit 14: Digital Subs(1)‘000s2

0 0 9

2007: 3022 2008: 3191 (+6%) 2007: 758 2008: 939 (+24%)

367+66%

79.898.5

+23%

+18.7

AR$000s

A R C H 11

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221 146

E S U L T S ‐M A

4Q07 4Q08 4Q07 4Q08

13

4 Q 0 8 R E

(1) In Argentina. Source: Company Information

2007: 75.3 2008: 91.7 (+22%)2007: 221 2008: 367 (+66%)

Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session14

4 Q 0 8 R E

Revenues & Costs

Printing & Publishing I

432354



22% 432

229

354

169 35%

22%

103

229

86

35%

21%28 2%

99

103

100

21%

‐1%

28.2% 23.0%

2 0 0 9

Cost of Sales

Selling & Adm.

Expenses

EBITDANet SalesNet Sales Cost of Sales

Selling & Adm.

Expenses

EBITDA

A R C H 11

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pp

Dec ‐ 07

Net Sale Comparison

1,174+30%

286Dec ‐ 07


E S U L T S ‐M A

15EBTIDA Margin

1,520Dec ‐ 08 320Dec ‐ 08

4 Q 0 8 R E


Revenues & Costs

Printing & Publishing I

1 5201 174



30% 1,5201,174 30%

805589 37%

395298 32%

2 0 0 9

320

395

286 12%

24.4%21.1%

A R C H 11

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EBITDACost of Sales

Selling & Adm.

Net SalesNet Sales EBITDASelling & Adm.

Cost of SalesE

S U L T S ‐M A

ExpensesExpenses

16EBTIDA Margin4

Q 0 8 R E


Printing & Publishing IIKey Ratios

Exhibit 20: Key Ratios

2%+3%

426436‐2%

60.0% 61.7%

4Q07 4Q08 4Q07 4Q08

50.2% 47.8%‐5%

Circulation1 (‘000s) Advertising Share2

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2007: 443 2008: 430 (‐3%) 2007: 60.0% 2008: 60.8% (+1%)

4Q07 4Q08A R C H 11

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4Q07 4Q08

Circulation Share2E S U L T S ‐M A

2007: 49.6% 2008: 48.0% (‐3%)

(1) Average number of copies according to IVC (including Diario Clarín and Olé), thousands per day(2) Share in Buenos Aires and greater Buenos Aires Area (AMBA) Diario Clarín, company estimates

17Source: Company Information

4 Q 0 8 R E

Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session18

4 Q 0 8 R E

Revenues & Costs

Broadcasting & Programming I

234 324



38%234

149

32438%

149 21645%

47

39

51

5747%19.9% 15.8%

9%

2 0 0 9


Selling & Adm.

Expenses

EBITDA Net Sales Cost of Sales

Selling & Adm.

Expenses

EBITDA

A R C H 11

th, 2

784Dec ‐ 07

Net Sale Comparison +32%

140Dec ‐ 07


E S U L T S ‐M A

19EBTIDA Margin

1,038Dec ‐ 08 159Dec ‐ 08


4 Q 0 8 R E

Revenues & Costs

Broadcasting & Programming I

784 1 038



32%784 1,03832%

504 68937%

2 0 0 9

140

140

159

19036%17.9% 15.3%

13%A R C H 11

th, 2


Selling & Adm.

EBITDA

159


Selling & Adm.

EBITDA

13%

E S U L T S ‐M A

Expenses Expenses

20EBTIDA Margin


4 Q 0 8 R E

Broadcasting & Programming IIKey Ratios

‐15%‐4%

Exhibit 25: Key Ratios

44.5%37.8%

4%41.5%43.3%

4Q07 4Q08 ‐13% 4Q084Q07

35.6% 30.8%Prime Time1 Advertising Share2

2 0 0 9

2007: 42.4% 2008: 43.3% (+2%) 2007: 45.4% 2008: 41.5% (‐9%)

4Q084Q07

A R C H 11

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Total Time1

E S U L T S ‐M A

2007: 34.5% 2008: 33.5% (‐3%)

21

(1) Share of broadcast TV audience according to IBOPE for AMBA. Prime time is defined as Monday through Friday from 8pm to 12am.

Total time is defined as Monday through Sunday from 12 pm to 12 am(2) Company estimate, over adspend in Ps. in broadcast TV for AMBA region


4 Q 0 8 R E

Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session22

4 Q 0 8 R E

Revenues & Costs

Digital Content & Others I

4538



19% 45

22

38

14

19%

63%

17 61%

27

‐152%8

20.0%

‐8.7%

2 0 0 9


Selling & Adm

‐4

EBITDA


Selling & Adm.

Expenses

EBITDA

A R C H 11

th, 2

Sales Adm. Expenses

138Dec ‐ 07

Net Sale Comparison +23%

34Dec ‐ 07

EBITDA Comparison

E S U L T S ‐M A

23EBTIDA Margin

169

138Dec ‐ 07

Dec ‐ 08 1

34Dec ‐ 07

Dec ‐ 08 ‐98%


4 Q 0 8 R E

Revenues & Costs

Digital Content & Others I

169138



23% 169

76

138

48

23%

58% 7658%

92

55 67%

24.9%

2 0 0 9

1‐98%34 0.3%

A R C H 11

th, 2


Selling & Adm.

Expenses

EBITDASelling & Adm.

Expenses


EBITDA

E S U L T S ‐M A

24EBTIDA Margin


4 Q 0 8 R E

2007 & 2008, yoy figures

CAPEX & Net Sales

Exhibit 30: Capex & Net SalesAR$ MM

5 736

1384,384

1661,038

5,736

2008 CAPEX Breakdown

784138

1,174

1,5207%

1%3%

41204

2,613576

2 0 0 9

6229103,417

848

88%

13.1%14.8%

‐325

51141

2007 2007

A R C H 11

th, 2

‐405

746

2008N t S l

2008C

88%

Net Sales Capex

Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingE S U L T S ‐M A Net Sales Capex

25

Cable TV & Internet Access Printing & Publishing Broadcasting & ProgrammingDigital Content & Others Eliminations Capex / Net Sales

4 Q 0 8 R E


Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session26

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Exhibit 31: Equity Participation at IPO1

%

Exhibit 32: Shareholder StructureNumber of Shares4

Controlling Shareholders 204,030,227

Goldman Sachs 26 198 157

20%

Free Float

Goldman Sachs 26,198,157

Free Float 57,190,200

• International 24,139,232 (42%)

9%

71%

GS3

2 0 0 9

Total 287,418,584

( )

• Local 33,050,968 (58%)ControllingShareholders2

71%

The original IPO allocation was 80% international and 20% local

A R C H 11

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1 Since the IPO, our shareholders and management acquired approximately 4.6 MM shares (8.0% of the free float)2 C t lli Sh h ld E ti H d N bl H t H M tt J A t i A d d L i R f l P liE

S U L T S ‐M A

2 Controlling Shareholders: Ernestina H. de Noble, Hector H. Magnetto, Jose Antonio Aranda and Lucio Rafael Pagliaro3 Goldman Sachs: GS Unidos, LLC; GS Private Equity Partners II Direct Investment Fund, LP; GS Capital Partners III; and GS Private Equity Partners 1999 Direct Investment Fund, LP; Tinicum GC Investors, LLC; Farallon GC Investors, LLC4 As of March 10, 2009

27

4 Q 0 8 R E


Agenda



Financial Debt



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E S U L T S ‐M A

Q & A Session28

4 Q 0 8 R E

Grupo Clarín

(GCLA)

Q & A SessionMarch 11, 2009


Grupo Clarín

(GCLA)

Fourth Quarter Results 2008March 11, 2009


fourth quarter results 2008 · 4q07 4q08 ‐83 ‐109 4q07 4q08 2 0 0 9 cable tv & internet...

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