2. SUMMARY
GLOBAL MARKET AND
LIVE NATION
ENTERTAINMENT AND
SOUTH AMERICA
OUR CHOICE: BRAZIL HOW? ACQUISITION
FINANCIAL OPERATION
AND FORECAST
LAUNCH AND
RECOMMENDATIONS
3. GLOBAL MARKET
Sources: BillboardBiz and 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 SOUTH AMERICA
• 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
• GROWTH PROJECTION 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
8. T4F – BRAZIL AND 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 2.2X EVENTS
-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
11. LAUNCH
LAUNCH (6 MONTH STRATEGY)
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
15. 55% REVENUE 2.2X EVENTS
-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
6 MONTH 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
per Concert
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
