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Live Nation - Presentation - FINAL
- 1. EXPANSION TO SOUTHAMERICA
- 2. SUMMARY GLOBAL MARKET AND LIVENATION ENTERTAINMENT AND SOUTH AMERICA OUR CHOICE: BRAZIL HOW? ACQUISITION FINANCIAL OPERATION AND FORECAST LAUNCH AND RECOMMENDATIONS
- 3. GLOBAL MARKET Sources: BillboardBizand T4F • Potential Markets: Brazil, Russia, India and China • US: 30% of the market • Digital music sales increase: represent 58% of total music market. ILLEGAL MUSIC DOWNLOADS: affect artist record sales. Bands need to start doing more tours
- 4. LIVE NATION • +BUSINESS MODEL: - ARSTIST NATION (+200) - TICKETING (TICKETMASTER – 80% US) - SPONSORSHIP - CONCERTS • + U$2.5 BILLION REVENUE 3Q14 • SALESFORCE, VICE AND YAHOO PARTNERSHIPS 60.000.000 FANS 3.000 ARTISTS 33 COUNTRIES 3RD ONLINE RETAILER BIGGEST ENTERTAINMENT COMPANY IN THE WORLD
- 5. ENTERTAINMENT AND SOUTHAMERICA • Strong economies: Brazil, Argentina and Chile are the biggest for Live Entertainment; • Opportunity to introduce concert culture; • Risks: Unstable economies: dollar rising, low growth, embargued countries; • THEY ARE PASSIONATE FOR ENTERTAINMENT BRAZIL COUNTRY GROWTH: 0.2% GDP: U$2.456T CHILE COUNTRY GROWTH: 0.8% GDP: U$285BI EUROMONITOR – TRADING ECONOMICS
- 6. BRAZILIAN MARKET • GROWTHPROJECTION UNTIL 2018: 39%; • MORE VENUES AVAILABLE: WORLD CUP STADIUMS; • 2014: DEBUT OF ARENA ALLIANZ IN SP (AEG – PAUL MCCARTNEY); • 2015: ROCK IN RIO, LOLLAPALOOZA, TOMORROWLAND, ROLLING STONES AND U2; 2013: U$140M 2014: U$200M2015: ? Source: Estadao.com.br
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- 8. T4F – BRAZILAND CHILE • Biggest entertainment company in SA • 5 Venues in Brazil, 1 in Argentina • Offices in São Paulo, Santiago and Buenos Aires • Tickets For Fun (low penetration; 27 points of sales, Box Offices and Site) • LN Partner • Producer of Lollapalooza • Expertise and Human Resources • More than 2.3 million fans on social Opportunities: • Accumulate a debt of U$190MI (2014) • Stock descreased 85% since being public • Loss in Family and Performing Entertainment
- 9. 55% REVENUE 2.2XEVENTS -37% TICKETS SALE -68% CASH FLOW T4F Q2 2014 LIVE NATION Bid: U$190M* Limit: U$280M ACQUISITION PROCESS - FINANCES *T4F Financial Statements Q2 2014
- 10. PRESIDENT FINANCIAL LIVE CONCERTS FAMILY SALES AND MKT HR AND OPERATIONS SPORTS OPERATION •FOCUS ON LIVE ENTERTAINMENT, DIGITAL AND TICKETMASTER PRESIDENT FINANCIAL LIVE CONCERTS DIGITAL AND MKT SPONSORSHIP TICKETMASTER HR CEO 72% LIVE MUSIC 27% FAMILY AND THEATER 2% SPORTS
- 11. LAUNCH LAUNCH (6 MONTHSTRATEGY) DIGITAL FOCUS SOCIAL NETWORKS ONLINE MEDIA MOBILE LAUNCH TICKETMASTER CONTENT STRATEGY NEW ARTISTS NATION PR SPONSORSHIP ADVERTISING LIVE NATION T4F MUSIC FESTIVAL SÃO PAULO – STADIUM - LOCAL AND INTERNATIONAL ARTISTS
- 12. EXPECTED Concerts 1,200 Tickets per concerts 3,500 Average Revenueper Concert U$164,500 Total Revenue U$197,400,000 Net Income (3.4%) U$6,111,600 SPONSORSHIP U$ 36,889,981 FORECAST CONCERTS: 65% of full agenda 4-6 YEARS BREAKEVEN
- 13. WE POTENTIAL MARKET HOW?ACQUISITION ADJUSTING THE STRUCURE ARE READY DIGITAL FOCUS AND TICKETMASTER 4-6 YEARS OF BREAKEVEN
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- 15. 55% REVENUE 2.2XEVENTS -37% TICKETS SALE -68% CASH FLOW T4F Q214 LIABILITIES AND ASSETS: U$190MI LONG TERM DEBTS U$12 MI SHORT TERM DEBTS U$82 MI LIVE NATION Bid: U$190MI Limit: U$280MI AQUISITION PROCESS - FINANCES 72% LIVE MUSIC 27% FAMILY AND THEATER 2% SPORTS
- 16. TIMELINE - IMPLEMENTATION 6MONTH STRATEGY ACQUISITION AND SOFT ANNOUNCEMENT: INVESTORS PLATFORM AND SOCIAL MEDIA. CRISIS MANAGEMENT TEAM ANNOUNCEMENT TO THE EMPLOYEES WITH NO CHANGES IMPLMEMENTED OPERATION CHANGE ANNOUNCEMENT: FOCUS ON LIVE ENTERTAINMENT BUSINESS 5 ANNOUNCEMENT CHANGES: -COMPANY STRUCTURAL CHANGES -POLICIES -VISION / MISSION -NEW CULTURE -OPERATIONS BUSSINESS MODEL FINAL CHANGES: 1.ANNOUNCEMENTS 2.FUTURE PLANS 3.NEW OPERATION 4.NEW POSITION 5.SPONSORSHIP LEADS OFFICES: - SAO PAULO HQ AND CHILE SUPPORT OFFICE - NEW KPI’S. - FINAL HR ADJUSTMENTS - FIRST HIRINGS LAUNCH MARKET COMPANY - FINAL HIRINGS AND INTERNAL STRUCTURES ADJUSTMENTS - IMPLEMENTANTION OF NEW HR POLICIES START M2 START M2 M4 M4 M6 M6
- 17. CONSERVATIVE Concerts 1,200 Tickets per concerts 2,100 Average Revenue perConcert U$98,700 Total Revenue U$118,440,000 Net Income (1%) U$1,184,400 EXPECTED Concerts 1,200 Tickets per concerts 3,500 Average Revenue per Concert U$164,500 Total Revenue U$197,400,000 Net Income (3.4%) U$6,111,600 AMBITIOUS Concerts 1,200 Tickets per concerts 5,600 Average Revenue per Concert U$263,200 Total Revenue U$315,840,000 Net Income (10%) U$31,584,400 SPONSORSHIP = U$ 36,889,981 FORECAST CONCERTS: 65% of full agenda SPONSORSHIP:U$30.750 per event SPONSORSHIPS: Avg of 2012; 2013 5-7 YEARS 4-6 YEARS 3-4 YEARS BREAKEVENS