Investor Presentation - Inter Media and Communication - Q3 FY21-22
Investor Presentation - Inter Media and Communication - Q3 FY21-22
Investor Presentation - Inter Media and Communication - Q3 FY21-22
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Nine months ended March 31, 2022 Results Presentation
May 30, ,2022
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This presentation (the “Presentation”) has been prepared by Inter Media and Communication S.p.A. (“Inter Media” or “the Company”) and is its sole responsibility. For
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standards and are subject to change without notice. The financial results in this document and the Presentation include certain financial measures and ratios, including
Adjusted Media Revenue, Adjusted Revenue, Cash Available for Debt Service, Current / Non Current Operating Assets, Current / Non Current Operating Liabilities,
Debt Service Coverage Ratio and certain other related measures that are not presented in accordance with IFRS or Italian GAAP and are unaudited. These measures
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(ii) to be bound by the foregoing limitations, undertakings and restrictions. 2
Overview of Inter MediaCo («MediaCo»)
Inter MediaCo at a Glance Inter TeamCo – An Iconic Franchise
• Sole manager and operator of the media, broadcast and sponsorship • One of the leading European football clubs, with a history dating back to 1908
businesses of FC Internazionale Milano SpA (“Inter” or “TeamCo”)
• Only club to have played every season in Serie A since the league’s inception in 1929 and
• Formed in 2014 in connection with the contribution by Inter of its media, broadcast the only never been relegated
and sponsorship rights business, its historical media archives and the material IP
rights relating to the Inter brand – Won 33 domestic trophies including 19 Serie A championships, 8 Domestic Cups (of
which the last one in May 2022) and 6 Domestic Super Cups (of which the last one in
• MediaCo main revenues lines are divided into Media rights and Sponsorships January 2022), 3 UEFA Champions League titles, 3 UEFA Cup titles, 2
– Media rights mainly relate to Serie A (centrally managed by Lega Serie A on three- Intercontinental Cups and 1 FIFA Club World Cup
year cycle contracts) and European competitions (centrally managed by UEFA on – First Italian team to complete the “Continental Treble” by winning the titles in Serie A,
three-year cycle contracts) Domestic Cup and UCL all in the same season in 2010
– Other Media rights relate to sale of archive content rights and distribution of • During the sporting seasons 17/18, 18/19 and 19/20 (before restrictions related to the
thematic channel and other owned contents pandemic), Inter was the 1st club in Italy and in the top 10 clubs in Europe in terms of
– Jersey sponsors: three new partners since July 1, 2021: Socios (front), average attendance. The same in 21/22 following partial re-opening of the stadium
Zytara/Digitalbits (sleeve) and Lenovo (back); • Participation to UEFA Champions League (“UCL”) Group Stage in each of the past four
– Technical sponsor: Nike since 1998/99 season seasons (in 21-22 achievement of Ro16 of UCL – first time in ten years) and in the next
one
– Other sponsors include Naming Rights, European, Global and
International/Regional sponsorship packages • Victory of 20/21 Serie A championship and 21/22 domestic Cup and Supercup.
\\\\\ Achievement of UEL final in 19-20 season
➢ On January 27, 2022, MediaCo priced its offering of €415.0 million in aggregate principal amount of 6.75%
Senior Secured Notes due 2027 at an issue price of 100.00%. (the “Notes”). The issuance and settlement of
the Notes occurred on February 9, 2022.
➢ The proceeds of the Notes have been used to redeem the MediaCo’s outstanding Senior Secured Notes due
2022 (the “Old Notes”), to repay TeamCo’s revolving credit facility due 2022 (the “RCF”), to fund the secured
accounts with respect to the Notes and to pay related fees and expenses.
➢ Through this refinancing transaction (the “Refinancing Transaction”) we have extended the maturity profile of
the TeamCo group’s debt, keeping a financing structure which enables the group to pursue its long-term
strategic goals. \\\\\
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Key Financial Highlights (1/2)
Key Highlights – Adjusted Revenue Key Financials- Adjusted Revenue
Reported (€m)
which (i) exclude amounts shifted from the sporting season 2019-
2020 due to its end in August 2020 and (ii) include amounts shifted to 70.1 179.0
the last quarter of the fiscal year ended June 30, 2021, due to the
postponement of the start of the 2020-2021 sporting season. 47.9
➢ On a “pro-forma” the decrease of Adjusted Revenue is lower
(quantifiable in €25.0 million or - 12.2%) and is mainly driven by: 176.9
131.1
➢ Lower Serie A Revenue which decreased by 25.7 million or –
28.1% from €91.4 million to €65.7 million mainly due to (i) €13.4
million advance payments (including €2.4 million VAT assigned
with the receivables) already received in Q4 of the fiscal year YTD Mar 2021 YTD Mar 2022
ended June 30, 2021 in respect of Media Revenue for the
sporting season 2021/2022 and (ii) lower total distributable
resources at of the new Serie A cycle 2021/2022-2023/2024
\\\\\
compared to the previous cycle ended June 30, 2021 (approx.-
10% mainly resulting from lower value of international rights
following non-assignment to date in the MENA region).
➢ Lower Regional and naming rights Sponsorship Revenue which
Pro-forma (€m)
204.0
decreased by €19.3 million or – 72.2% from €26.7 million to €7.4 179.0
million mainly due to the termination of the contract with our
regional marketing agency effective from July 1, 2021. 54.6
47.9
➢ This has been partially offset by (i) €14.2 million increase in Shirt
Sponsorship Revenue (+251.0%) from €5.7 million to €19.8 million
driven by higher annual fixed fee of the three new 2021/2022 149.4 131.1
sponsors (Socios.com. Zytara/Digitalbits and Lenovo) compared to
the contractual fixed fee of our previous sponsor (Pirelli) and (ii)
€12.9 million increase UEFA Revenue (+28.5% from €45.3 million to
€58.2 million) thanks to the better progression in UCL (where the YTD Mar 2021 YTD Mar 2022
team achieved the Ro16 compared to Group Stage exit in prior
season)
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Key Financial Highlights (2/2)
Key Highlights – Cash Available for Debt Service Key Financials- Cash Available for Debt Service
• Stability given by secured new three-year Serie A cycle • Serie A and UEFA revenue already contracted for the next two
(21/22 to 23/24). Despite 10% less distributable resources than fiscal years
prior cycle (mainly due to current non-assignment in the MENA
• Qualification to UCL also for the 22/23 sporting season
region), this has ensured to MediaCo, for the 21/22 season, €87
million (figure estimated based on final 2nd position, excluding
• Media revenue growth via content delivery through the Media
Media Revenues House
VAT assigned with the receivables and the €13.4M advance
payment received in FY21) and including refund from Mediapro • Positive outlook due to the normal recovery of the sporting
seasons after the temporary interruption and subsequent
• Participation to UCL also for the season 2021-22 which,
reduced attendance due to Covid-19 pandemic
considering the Ro16 exit, has ensured to MediaCo revenues in
the range of €60 million
• Ability to secure, to date, contracted sponsorship revenue • Revenues already contracted for the next fiscal year (22/23) in
for an amount in the region of €66 million for the 21/22 the region of €66M, with positive outlook due to the normal
season recovery of the sporting seasons after the temporary interruption
and subsequent reduced attendance due to Covid-19 pandemic
Sponsorship • Decrease in regional Asian sponsorships partially offset by
Revenues increased value of jersey sponsorship fees with three new • The increased visibility of Inter resulting in greater engagement
multi-year contracts (Socios, Zytara/Digitalbits and Lenovo) and reach to a wider variety of sponsorship and commercial
opportunities
• The current fiscal year benefited from the partial re-opening of the Stadium. After the previous season with no tickets on sale, we have
achieved more than €38M matchday revenue in the current season
TeamCo Update • Positive transfer market campaign with multiple international transfer but maintaining the positive performance of the squad
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Appendix
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Statement of Cash Available for Debt Service
Revenue
Revenue 82.0 66.5 54.1
Other Income 0.8 0.8 1.1
Total Revenue 82.9 67.3 55.1
Operating Costs
Personnel Costs (2.3) (2.3) (2.2)
Cost of Services (8.9) (8.7) (8.3)
Other operating costs (0.7) (0.7) (0.7)
Write-down of trade receivables * (0.0) (0.0) (23.6)
Depreciation and Amortization (13.7) (13.7) (15.3)
Provisions for risks and charges (3.1) (3.1) -
Total Operating Costs (28.6) (28.5) (50.1)
Operating Profit 54.2 38.9 5.0
Net Financial Expenses (8.2) (8.2) (13.6)
Profit/(Loss) Before Tax 46.0 30.7 (8.8)
Income Taxes (13.5) (9.0) 3.7
Profit/(Loss) for the Period 32.5 21.7 (4.9)
* €23.6 million write-down in the nine months ended March 31, 2022 mainly relates to the accrual made in order to fully
cover the outstanding net receivable as at March 31, 2022 from our former Asian marketing agency (non-cash item)
Refer to the separate long-form document “Financial Results of Inter Media and Communication S.p.A for the nine
months ended March 31, 2022 for more details on this and for comments on Income Statement line by line 10
Cash Flow Statement
For the nine months ended March 31,
2021 (Reported) 2022
(In Millions of €)
Profit /(Loss) for the period 32.5 (4.9)
Current taxes 15.1 (2.4)
Net financial expenses 8.2 13.6
Profit for the period before taxes and interest 55.8 6.3
Depreciation and Amortization 13.7 15.3
Write-downs/(release/uses) of trade receivables 0.0 23.6
Employee severance indemnities 0.1 (0.0)
Accrual/(releases/uses) for risks and charges 0.9 -
Deferred tax assets and liabilities (1.6) (1.3)
Cash flow from operating activities before changes in working capital 68.9 44.0
Increase in trade and other receivables (12.8) (12.7)
Increase / (Decrease) in trade and other payables 19.6 0.9
Other variations in net working capital (2.0) 5.0
Cash flow from operating activities after changes in Net Working Capital 73.7 37.2
Taxes paid (0.3) (1.6)
Interest and other financial expenses paid (8.5) (10.7)
A. Cash flow from operating activities 64.9 24.9
Investments in Intangible Assets (0.0) (0.0)
Investments in Property, Plant and Equipment (0.0) -
Debt service and reserve account (16.3) (14.9)
B. Cash flow from investing activities (16.4) (14.9)
Intercompany loans (61.4) (50.5)
Repayment of Senior Secured Notes 2022 (4.3) (353.5)
Issuance Senior Secured Notes 2022 (“tap” – net of transaction fees and OID) 66.1 -
Issuance Senior Secured Notes 2027 (net of transaction fees) - 407.4
Dividends (26.0) (11.4)
C. Cash flow from financing activities (25.5) (7.9)
Increase / (Decrease) cash and cash equivalents (A+B+C) 23.0 2.0
Cash at bank and on hand at the beginning of the period 16.9 28.3
Cash at bank and on hand at the end of the period 39.9 30.4
Refer to the separate long-form document “Financial Results of Inter Media and Communication S.p.A for the nine
months ended March 31, 2022 for comments line by line 11