1 st Quarter 2013 Financial & Operating Results The Chronicle - PowerPoint PPT Presentation

1 st Quarter 2013 Financial & Operating Results The Chronicle Lounge 14/F Eugenio Lopez Jr. Communications Center Eugenio Lopez Ave., Q.C. 15 May 2013

Consolidated Revenues Without election-related advertising, revenues were up 15% 21% Php Millions 9,000 7,878 8,000 6,531 7,000 45% 3,510 6,000 45% 5,000 2,963 4,000 3,000 55% 4,368 2,000 3,568 55% 1,000 - 1Q12 1Q13 Airtime Revenues Consumer Sales 2

Consolidated Advertising Revenues Without election-related ads, advertising revenues were up 12%. Php Millions 22% YoY 5,000 4,000 3,000 4,368 2,000 3,568 1,000 0 1Q12 1Q13 3

National Ratings – Total Philippines (Urban + Rural) Total Day Audience Share Evening Primetime Audience Share ABS-CBN GMA TV 5 Others 46 41 32 30 15 14 13 11 4 Kantar Media/TNS National Philippines TV Audience Shares (January – March 2013)

Top 15 Programs are from ABS-CBN Rank Channel Program Ratings 1 ABS-CBN Juan dela Cruz 36.9 2 ABS-CBN Ina Kapatid Anak 34.6 3 ABS-CBN Juna dela Cruz Ang Simula 33.5 4 ABS-CBN Wansapanataym 31.5 5 ABS-CBN Princess and I 31.0 6 ABS-CBN MMK Ang Tahanan Mo 30.6 7 ABS-CBN Pilipinas Got Talent Saturday 28.7 8 ABS-CBN TV Patrol Weekday 28.3 9 ABS-CBN Be Careful With My Heart 26.7 10 ABS-CBN Aryana 26.6 11 ABS-CBN Pilipinas Got Talent Sunday 25.2 12 ABS-CBN Apoy Sa Dagat 24.6 13 ABS-CBN Kapamilya Deal Or No Deal 23.6 14 ABS-CBN Rated K Handa Na Ba Kayo? 23.4 15 ABS-CBN Goin' Bulilit 22.1 16 GMA Kapuso Mo, Jessica Soho 20.8 17-18 GMA Pepito Manaloto Ang Tunay Na Kuwento 20.3 17-18 GMA Magpakailanman 20.3 19 GMA Indio 19.7 20 ABS-CBN MasterChef Pinoy Edition Live Cook Off 19.2 Kantar Media/TNS National Philippines (Urban+Rural) January – March 2013 5

Consumer Sales Php Millions 5,000 18% YoY 4,000 3,000 2,000 3,510 2,963 1,000 0 1Q12 1Q13 6

Consumer Sales Php Millions 18% 4,000 3,510 2,963 3,000 43% 2,000 1,643 5% 1,194 1,152 1,135 19% 1,000 732 617 0 Total Global SkyCable Others 1Q12 1Q13 7

• TOTAL REVENUES: Increased 2% in USD terms, declined by 4% in Php • Viewer count increased by 4% • Continued growth in Canada, Asia Pacific, Australia and North America • Remittance revenues up by 21% 8

Php Millions 2,000 Revenues 43% • Strong revenue growth of 43%; without Destiny, 1,500 revenues grew 13% • Total broadband revenues 1,000 grew 51% 1,643 • Total postpaid cable revenues 1,152 500 grew by 46% 0 1Q12 1Q13 9

ABS-CBN Film Productions 3 of 6 films released in 1Q13 broke past the Php 200 million mark in gross box office receipts 10

Costs & Expenses Without non-recurring expenses, costs were up by only 13% Php Millions 10,000 17% 8,000 7,195 6,173 6,000 4,000 2,000 0 1Q12 1Q13 11

Production Costs Php Millions 10% 3,000 2,717 6% 2,477 2,500 2,222 2,089 2,000 1,500 28% 1,000 495 388 500 0 Production Costs Cash Non-cash 1Q12 1Q13 12

Cost of Sales and Services Php Millions 3,000 17% 2,090 2,000 1,782 3% 29% 22% 1,009 1,000 783 552 536 545 447 0 Total Global SkyCable Others 1Q12 1Q13 13

General & Administrative Expenses Without non-recurring expenses, GAEX was up by only 14% Php Millions 25% 28% 3,000 2,390 2,242 1,913 1,747 2,000 1,000 11% 166 148 0 Total Cash Non-Cash 1Q12 1Q13 14

Consolidated Net Income Php Millions 800 66% 600 400 508 200 306 15 0 1Q12 1Q13 15

Consolidated EBITDA Php Millions 3,000 40% 2,000 1,000 1,905 1,362 0 1Q12 1Q13 16

Cash Capital Expenditure & Film Rights Php Millions 2,000 1,500 1% YoY 1,000 1,065 1,059 500 0 1Q12 1Q13 17

Balance Sheet Accounts Dec 2012 Mar 2013 4% Php49.5B Php51.7B Total Assets 12% Php6.4B Php 7.1B Cash and Cash Equivalents 4% Php6.8B Php 7.1B Trade Receivables 1 day 78 days 79 days Day’s Sales Outstanding 1% Php15.8B Php15.6B Total Interest Bearing Debt 4% Php21.5B Php22.4B Shareholders’ Equity 0.06x 0.44x 0.38x Net Debt-to-Equity Ratio

ABS-CBN to Raise P4 Billion in New Equity Capital International Private Equity Fund VI, L.P. and affiliated funds (collectively “C IPEF ”) agreed to subscribe to P2.5 billion worth of new Philippine Deposit Receipts ( “ PDRs ” ) to be issued by ABS-CBN Holdings Corporation (“ABS - CBN Holdings”) (PSE: ABSP), which will in turn subscribe to the same number of newly issued common shares of ABS-CBN Corporation (“ABS - CBN”) (PSE: ABS). Lopez, Inc. has also agreed to subscribe to P1.5 billion worth of new common shares of ABS-CBN. This allows ABS-CBN to raise P4 billion. The new PDRs to be issued to CIPEF have been priced at P43.225 per PDR. The new shares to be issued to Lopez, Inc. have also been priced at P43.225 per share. The price represents 2.1% discount to the 45-day volume-weighted average price for ABS-CBN PDRs and 3.2% premium to the 45-day volume-weighted average price for ABS-CBN common shares as of May 14, 2013. The PDR subscription and the share subscriptions are expected to be completed within 2013. ABS-CBN Holdings is expected to complete its share subscription on or before June 10, 2013 to allow it to subsequently issue the new PDRs to the CIPEF. At the completion of the share subscriptions and the PDR subscription, Lopez, Inc. will hold 56% of the outstanding common shares and will retain voting control of 79% of all outstanding shares. The PDR issuance by ABS-CBN Holdings and the issuance of new common shares by ABS- CBN take advantage of the favorable performance of Philippine Stock Exchange in general and particularly, ABS-CBN PDRs and shares. The funds raised from this exercise will be used towards initiatives to further expand the distribution of ABS-CBN content to the widest array of platforms available, including Digital Terrestrial Television. ABS-CBN Chairman Eugenio Lopez III remarked , “ We are glad to have earned the support of our controlling shareholder and one of the world’s largest investment management and private equity firms in our pursuit to deliver enhanced value to all of ABS- CBN’s stakeholders.” ING Bank N.V. acted as financial advisor to ABS-CBN for the transaction.