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2 nd Quarter 2015 Investor’s Briefing Financial and Operating Results August 12, 2015 1

nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

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Page 1: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

2nd Quarter 2015 Investor’s BriefingFinancial and Operating Results

August 12, 2015

1

Page 2: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Operational Highlights

2

NCAA launched season 91 and re-unites with

ABS-CBN

ABS-CBN’s biggest stars set to launch

blockbuster movies exclusively for mobile

ABS-CBN launched multi-channel network for next

online stars

ABS-CBN’s newest drama series “On The Wings of

Love” is set to bring romantic and feel-good vibes on

Primetime Bida

KidZania Manila officially opened its doors to the public on August 7, 2015, letting children

take on different roles in real-life establishments

ABS-CBN teams up with 22 groups for biggest coverage of 2016

national elections

Page 3: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

7,559 8,236

8,819 9,500

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1H'14 1H'15

Ad Revenues Consumer Sales

3

Revenues - Reported

8.3%

7.7%

9.0%

For the period ended June 30, 2015

16,378 17,736

Total revenues increased 8.3%

In PHP Millions

54%54%

46%46%

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4,794 5,217

4,749 5,407

5,549 5,419

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1H'14 1H'15

2.3%

Costs and Expenses

4

For the period ended June 30, 2015

8.8%

Production costs down 2.3%

13.9%

6.3%

Production

Costs

Cost of Sales

& Services

GAEX

15,092 16,043In PHP Millions

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3,430 3,888

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1H'14 1H'15

16,378 17,736

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1H'14 1H'15

995

1,198

0

200

400

600

800

1,000

1,200

1,400

1H'14 1H'15

Financial Summary

5

Net Revenues

In PHP Millions

For the period ended June 30, 2015

EBITDA Net Income

8.3% 13.4% 20.4%

1H’14 1H’15

EBTDA MARGIN 20.9% 21.9%

1H’14 1H’15

NI MARGIN 6.1% 6.8%

Page 6: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Business Segments - Reported

6

** Numbers presented are net of ABS-CBNmobile TVCs and intersegment eliminations.

For the period ended June 30, 2015

TV and Studio business increased significantly by 38.3%

1H'15 1H'14 % Ch 1H'15 1H'14 % Ch 1H'15 1H'14 % Ch

A. TV and Studio 13,173 12,502 5.4% 3,581 3,063 16.9% 1,914 1,384 38.3%

Margins 27.2% 24.5% 14.5% 11.1%

B. Pay TV Networks 3,991 3,822 4.4% 841 879 -4.3% 34 109 -68.8%

Margins 21.1% 23.0% 0.9% 2.9%

C. New Business 881 181 386.7% -534 -512 -4.3% -750 -498 -50.8%

D. Eliminations -309 -127

TOTAL 17,736 16,378 8.3% 3,888 3,430 13.4% 1,198 995 20.4%

Margins 21.9% 20.9% 6.8% 6.1%

In Php MillionsRevenues EBITDA Net Income

Page 7: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

5,250 5,198

1H'14 1H'15

Production Costs

8,162 8,742

1H'14 1H'15

Net Revenues

TV and Studio – Broadcast

7

In PHP Millions

ABS-CBN Becomes Stronger in Nationwide Viewership

Broadcast revenues increased by 7.1% fuelled by ABS-CBN’s continued leadership in audience shares and ratings. Almost half of the Philippine households tuned in to ABS-CBN for the

month of June.

1.0%

7.1%

* Net of ABS-CBNmobile TVCs

Source: Kantar Media

Metro Total Metro

Manila PH ManilaABS-CBN 2 44 31 33 50 36 38GMA 7 35 42 36 31 40 34TV 5 7 8 7 8 8 7Others 14 19 24 11 16 21

CHANNELSTOTAL DAY PRIMETIME

Total PHMega

Manila

Mega

Manila

2nd Quarter Audience Share

Page 8: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Audience Share

8

Source: Kantar Media

Page 9: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Audience Share

9

ABS-CBN sustained its leadership in nationwide TV viewing across urban and rural homes

Source: Kantar Media

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TV and Studio – Broadcast

10

2nd Quarter 2015 Top 20 Programs

ABS-CBN shows dominated national ratings

Source: Kantar Media, June 2015

Rank Channel Program

1 ABS-CBN THE VOICE KIDS SUNDAY 40.0 Weekend

2 ABS-CBN THE VOICE KIDS SATURDAY 39.1 Weekend

3 ABS-CBN MMK ANG TAHANAN MO 37.8 Weekend

4 ABS-CBN YOUR FACE SOUNDS FAMILIAR SATURDAY 37.6 Weekend

5 ABS-CBN YOUR FACE SOUNDS FAMILIAR SUNDAY 36.7 Weekend

6 ABS-CBN NATHANIEL 34.9 Weekday

7 ABS-CBN PANGAKO SA'YO 33.5 Weekday

8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend

9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

10 ABS-CBN WANSAPANATYM 28.2 Weekend

11 ABS-CBN HOME SWEETIE HOME 24.1 Weekend

12 ABS-CBN BRIDGES OF LOVE 22.0 Weekday

13 ABS-CBN PASION DE AMOR 21.2 Weekday

14 ABS-CBN GOIN' BULILIT 21.0 Weekend

15 GMA MAGPAKAILANMAN 20.0 Weekend

16 ABS-CBN PERFECT TOGETHER PAUL & TONI'S WEDDING SPECIAL19.6 Weekend

17 ABS-CBN MGA KWENTO NI MARC LOGAN 19.3 Weekend

18 ABS-CBN PINOY BIG BROTHER 737 SATURDAY 19.2 Weekend

19 GMA KAPUSO MO, JESSICA SOHO 18.3 Weekend

20 ABS-CBN PINOY BIG BROTHER 737 SUNDAY 18.0 Weekend

Share

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TV and Studio – Broadcast

11

ABS-CBN continues to be the channel of choice

“Thank You sa Malasakit: Pope Francis saPilipinas”, ABS-CBN’s Special Coverage of Pope Francis’ visit last January 15-19, 2015.

President Benigno Aquino Jr.’s “State of The Nation Address 2015 The ABS-CBN Special Coverage” dominated the ratings.

13.2%

24.0%

More viewers tuned in to ABS-CBN for “Battle of Greatness: Pacquiao vs Mayweather”.

19.0%

vs 10.9%

vs 20.4%

vs 10.4%

* Average national TV rating; Kantar Media

Page 12: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

1,741 1,755

833 726

298 259

1H'14 1H'15

Net Revenues

Advertising

Retails andOthers

Subscription 1,713 1,637

1H'14 1H'15

Cost of Sales and Services

TV and Studio – Global

12

IPTV and TFC.TV Subscribers

Global’s subscription business continues to grow, with subscriber count increasing by 5% versus 1st

half of last year.

Overall viewership count increased by 3%. We continue to experience a double-digit subscriber growth in Canada, and single-digit growth in other territories.

In PHP Millions

4.4%

4.6%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

IPTV TFC.TV

2014 2015

TFC kicks off for the very first time, a four-pillar event this year as a tribute to the “Galing ng Filipino”.

TFC Cinema One Global

ANC Myx

Lifestyle Network DZMM Teleradyo

ABS-CBN Sports + Action MOR 101.9

TFC Channels

30.0%

85.3%

Page 13: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

413 368

1H'14 1H'15

Cost of Sales and Services

876776

1H'14 1H'15

Net Revenues

13

TV and Studio – Films and Music

In PHP Millions

11.4%

10.9%

Star Cinema released 8 movies in the first half of 2015.

Branded entertainment increased significantly by 8% compared to 2014.

Kapamilya Blockbusters Rating

Pagpag 18.4% vs 11.3%

Starting Over Again 15.0% vs 13.8%

She’s The One 15.0% vs 12.6%

Da Possessed 15.6% vs 12.7%

It Takes A Man And A Woman 15.6% vs 14.9%

My Illegal Wife 14.3% vs 9.4%

DISTRIBUTION PLATFORMS

- Theatrical- Free to Air- Pay TV- International Syndication- OTT- Digital/Online/Mobile

Page 14: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

627 661

1H'14 1H'15

Direct Costs and Expenses

744935

1H'14 1H'15

Net Revenues

TV and Studio – Narrowcast and Sports

14

In PHP Millions

Increase of Php191M fuelled by theatrical release of “That Thing Called Tadhana”, pay-per view subscription of Pacquiao-Mayweather fight, and release of best-selling books during the year.

5.4%

25.7%

Number of Books Sold YTD 2014 YTD 2015

Stupid is Forever 37,000 367,000

Dear Alex 47,500 65,000

Help! Ayoko na sa Syota Ko 20,500 -

Make Your Nanay Proud 10,500 -

Dear MOR 8,500 -

Stupid is Forevermore - 50,000

DJ ChaCha - 10,000

Besties - 35,000

Cinema One is undisputed number one channel in the first quarter of

2015 .

Page 15: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Digital Statistics

15

Number 1 vs Philippine Websites Number 5 vs All Websites

*Source Alexa. Basis of ranking: local page views and local reach

First Filipino channel to reach the one billion mark on the popular video-sharing website.

Over 74.6- million page views garnered by the video-on-demand and livestreaming service iWanTV for the month of June.

Ranking* Property

1 ABS-CBNnews.com

2 Inquirer.net

3 Lazada

4 OLX

5 Rappler

6 GMA

7 Metro Deal

8 BPI Online

9 ABS-CBN.com

10 Philstar

**Source Alexa. Basis of ranking: global page views and global reach

Ranking** Website

1 Facebook.com

2 Google.com.ph

3 Google.com

4 Youtube.com

5 ABS-CBNnews.com

6 Yahoo.com

7 Wikipedia.com

8 Amazon.com

9 Blogspot.com

10 Inquirer.net

ABS-CBNnews.com ranks 4th in Top 10 Biggest Facebook Publisher for June 2015.

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International Distribution

16

Recognized in the global arena as a reliable foreign content provider.

ABS-CBN International Distribution has been a premier source of high quality Filipino programming in over 50 territories all over the world and has sold over 30,000 hours of content worldwide.

ABS-CBN International Distribution welcomed 2015 by closing deals with first-time buyers from Kazakhstan, Macedonia, and Thailand.

AIRLINESSold Star Cinema Movies to 12 different airlines

ASIA

Malaysia

Vietnam

Cambodia

Thailand

Kazakhstan

AFRICA

Kenya

Uganda

Tanzania

Nigeria

Page 17: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

2,539 2,733

1H'14 1H'15

Direct Costs and Expenses

3,822 3,991

1H'14 1H'15

Net Revenues

Pay TV Networks – Sky

17

In PHP Millions

Our broadband subscriber base continues to expand, growing by 30% in 2015.

Total revenues grew by 4.4%driven by a 2% increase in cable revenues and 25% increase in broadband revenues.

4.4%

7.6%

Sky opens over 190 channels as 25th year

anniversary offer

2nd Qtr Broadband Subscribers

Highest Pay-Per View Event

88,695

115,608

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1H'14 1H'15

Page 18: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

All –day movie channel

All-day kid’s channel

News

Curriculum-based channel

• More than 500,000 boxes to date.

• Additional 4 exclusive channels with no additional cost.

Digital Terrestrial TV (DTT)

18

COVERAGE AREABenguet

PangasinanTarlac

Nueva EcijaPampanga

BulacanMetro Manila

RizalCaviteLaguna

Metro Cebu

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19

More than doubled the ARPU vs Q1 2015.

-

20

40

60

80

100

Q1 2015 Q2 2015

ARPU

40

90

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602

1,553 917

610

1,596 3,178

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Program Rights Pay TV and Digital Initiative Soundstage, Maintenance

and Others

1H'15 Remaining Balance

Capital Expenditures

20

In P

HP

Mill

ion

s

Spent Php 3.1B out of the Php 8.5B budget for 2015

1,212

3,149

4,095

Page 21: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Balance Sheet Highlights

21

Ratios 2014 1H’15

Current 2.1 1.9

Debt-to-Equity 0.8 0.8

Net Debt-to-Equity 0.3 0.3

In PHP Millions

ABS-CBN Corporation’s Outstanding P6.0-Billion Bond Issuance Maintains Highest Credit Rating of Aaa from PRS

67,237 68,920

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2014 1H'15

Total Assets

20,325 20,308

0

5,000

10,000

15,000

20,000

25,000

30,000

2014 1H'15

Total Borrowings

26,875 26,894

0

5,000

10,000

15,000

20,000

25,000

30,000

2014 1H'15

Equity

13,238 12,252

0

5,000

10,000

15,000

20,000

2014 1H'15

Cash

Page 22: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Recognition and Awards

22

ABS-CBN, the only Philippine media company in Finance Asia’s list of

“Asia’s Best Companies 2015”

Company of the Year second runner-up at the 13th

Philippine Quill Awards

ABS-CBN wins at 2015 New York FestABS-CBN won a bronze medal in the Cinematography category at the prestigious New York Festivals World’s Best TV and Films 2015 for its

documentary “Yolanda (Haiyan).”

Best TV Station by 12 different award giving bodies

KBP Golden Dove Awards, USTv Student’s Choice Awards, Gawad Tanglaw Awards, Aral Parangal Awards, Gawad Kamalayan Awards, Eastern Visayas State University’s Students’ Choice Mass Media Awards, Paragala Central Luzon Media Awards, and Andurog Awards,

among others.

Page 23: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

Except for historical and operating data and other information of historical matters, thestatements contained herein are “forward-looking statements”. The words “believe”, “intend”,“plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words arefrequently used to indicate these forward looking statements. Any such forward-lookingstatement is not a guarantee of future performance and involves a number of known andunknown risks, uncertainties and other factors that could cause the actual performance, financialcondition or results of operation of ABS-CBN to be materially different from any futureperformance, financial condition or results of operation implied by such forward-lookingstatement.

23

Page 24: nd Quarter 2015 Investor’s Briefing Financial and ... · 7 ABS-CBN PANGAKO SA'YO 33.5 Weekday 8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend 9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday

THE END

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