CORPORATE PRESENTATION- 4Q2019Imagen: Café Tacvba
As a precautionary note to the reader, except for the historical information provided herein,certain matters discussed in this document constitute forward-looking statements. Thesestatements assume that there are risks and uncertainties, including the economic conditions inMexico and other countries where CIE operates, as well as fluctuations in the value of theMexican peso against the United States dollar.
The use of registered trademarks or commercial trademarks in this document is exclusively forillustrative purposes and is not intended to violate copyrights and/or intellectual property lawsapplicable in the countries where CIE, its subsidiaries, and those companies with which CIEmaintains commercial or business relationships, operate.
LEGAL DISCLAIMER
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
THE ENTERTAINMENT INDUSTRY
Social networks
Streaming
Videogames
Live entertainment
Amusement parks
Business tourism
Movies
Museums and expos
Sports
Mass media
At-home Intermediate Out-of-home
4
Insurance
Customer ServiceTaxes Purchasing Legal
Commercial Area
Marketing
Finance
A D A P T
LIVE ENTERTAINMENT
C R E A T E
C U R A T E
C O N T R A C T
C O N T R O L O F A C C E S S
I N V I T A T I O N S / T I C K E T S
A N N O U N C E M E N T S
P R O F I L E S
S E A T I N G / C A T E G O R I E S
L O G I S T I C S
F O O D & B E V E R A G E S
S E R V I C E S
S T A G E
F O R M A T
S A F E T Y & C I V I L P R O T E C T I O N
V E N U E
A C T I V A T I O N S
H O S P I T A L I T Y
V I S I B I L I T Y
5
FUTURE
New types of entertainment
Innovation to the business model
Use of technology to learn about and improve the fan experience
6
NOW
FAN
Consumes and produces entertainment thanks to the evolution of technology
CURATORS
BRANDS
TALENT
MEDIA
7
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
OCESAENTRETENIMIENTO
REFORESTACION Y PARQUES
Promotion of live events
Operation and administration of show venues
Automated ticketing
Advertising sponsorships for brands, companies and government entities
Sale of food, beverages andsouvenirs
Artistic agency
Operation and development of El Salitre Mágico, an amusement park in Bogotá, Colombia
Event logistics and operation, meetings, exhibitions and conventions
Special and corporate events
Operation of Centro Citibanamex
Government events
Banquet service
Mexican Grand Prix – F1
CIE Entertainment CIE Special Events Other Businesses
CORPORATE STRUCTUREBUSINESS UNITS
LOGRACREACENTRO CITIBANAMEXA LA CARTAMEXICAN GRAND PRIX (F1)
Mexico, Colombia, Central America
Mexico and abroad ColombiaMARKETSSERVED
MAINOPERATIONS
(Numbers in millions of Mexican pesos, unless otherwise indicated)
ENTITIES
9
$ 2,288
$ 527
$ 210
$ 36
$ 11,709
$ 2,336
REVENUES 2019
EBITDA LTM 2019
$ 9,211
$ 1,773
INTEGRATED BUSINESS MODEL
10
Promoter Ticketing
Venues Sponsorship
10
J O N A S B R O T H E R SB I L L Y I D O L
11
C D S - C R Y S T A L C H I C A G OS H A W N M E N D E SM U S E
• Mexico and Colombia• Central America and the Caribbean
• Contracting and promoting musical concerts, and family and
sporting events
• Regional and local tours of large concerts and other live events
• Integrated offer of promotion and production services in the
region
S E R V I C E S
M A R K E T S
CIE ENTERTAINMENT
MUSIC CONCERTS, FAMILY, CULTURAL AND SPORTING EVENTS
12
12
D I S N E Y O N I C EC D M X M O N T E R R E YC D M X M O R E L O S C D M X
E S T A D O D E O G U A D A L A J A R A Q U E R É T A R O P U E B L A C D M X M É R I D A J A L I S C O
C D M X M O N T E R R E Y P U E B L A C H I H U A H U A C I U D A D D E M E X I C O L E Ó N C D M X
12
C D M X M O N T E R R E Y
E D O D E M É X I C O
CIE ENTERTAINMENT
MUSIC FESTIVALS THROUGHOUT MEXICO IN 2019
2015 2016 2017 2018 2019EDC EDC EDC EDC EDC
Ceremonia Ceremonia Ceremonia Ceremonia Ceremonia
Vive Latino Vive Latino Vive Latino Vive Latino Vive Latino
Pa'l Norte Pa'l Norte Pa'l Norte Pa'l Norte Pa'l Norte
Coordenada Coordenada Coordenada Coordenada Coordenada
Corona Capital Corona Capital Corona Capital Corona Capital Corona Capital
Live Out Live Out Live Out Live Out Live Out
Hell & Heaven Hell & Heaven Domination
Northside Northside Northside Northside
Beyond Wonderland Beyond Wonderland Beyond Wonderland
Tecate Comuna Tecate Comuna Tecate Comuna
Tecate Arcadia Tecate Arcadia Tecate Arcadia
Tecate Península Tecate Península Tecate Península
Tecate Sonoro Tecate Sonoro Tecate Sonoro
Tecate República Tecate República Tecate República
Coca-Cola Flow Coca-Cola Flow Coca-Cola Flow
Tecate Supremo Tecate Supremo
Corona Capital GDL Corona Capital GDL
Tecate Bajío Tecate Bajío
Pulso GNP Pulso GNP
Rio SolarVaivénSónarBravo
7 9 16 20 24
CIE ENTERTAINMENT
EVOLUTION OF THE PORTFOLIO OF FESTIVALS AND FUTURE PLANS
13
CIE ENTERTAINMENT
LARGE-SCALE / BROADWAY TYPE SHOWS
B E A U T Y A N D T H E
B E A S T
R E N T
P H A N T O M O F T H E
O P E R A
T H E M A N O F L A M A N C H A
J E S U S C H R I S T S U P E R S T A R
C H I C A G O
T H E F U L L M O N T Y
T H E L I O N K I N GF I D D L E R O N T H E
R O O F
H O Y N O M E P U E D O L E V A N T A RM A M M A M I A ! M A R Y P O P P I N S
W I C K E D
L E S M I S È R A B L E S
14
CIE ENTERTAINMENT
VENUES
Arena VFA (Guadalajara)Venue: 12,000 seatsExpires: August 2020
Auditorio Citibanamex (Monterrey)Venue: 7,000 seatsExpires: October 2048
Foro SolVenue: approximately 65,000 seatsExpires: August 2021
Teatro MetropolitanVenue: 3,165 seatsExpires: December 2021
Teatro InsurgentesVenue: 1,030 seatsExpires: December 2021
Auditorio Plaza CondesaVenue: 2,450 seatsExpires: May 2029
Pabellón CuervoVenue: 4,000 seatsExpires: February 2029
Teatro TelcelVenue 1,600 seatsExpires: Annually
Teatro LibanésVenue: 540 seatsExpires: December 2025
Palacio de los DeportesVenue: 21,000 seatsExpires: August 2021
Acropolis (Puebla)Venue: 10,229 seatsExpires: May 2028
Foro GNP (Mérida)Venue: 10,000 seatsExpires: May 2028
Hermanos Rodríguez Car RacetrackVenue: 65,000 seatsExpires: August 2021
Estadio 3 de Marzo (Guadalajara)Venue: 18,750 seatsExpires: August 2029
Auditorio NacionalVenue: 10,000 seatsExpires: Dates are bid on
15 venues under
long-term operation
1415
ENTERTAINMENT: A DIVERSIFIED CLIENT PLATFORM
16
CIE ENTERTAINMENT
TICKETING FOR EVENTS AND VENUES
• Points of sale: • 380 locations in malls and national department
stores
• Call centers: 18 million calls per year
CDMX 5325 9000MTY 8369 9000GDL 3818 3800
• www.ticketmaster.com.mx9.9 million single users per month85.6 million visits per monthCapacity: 4,200 transactions/ minute
• Box offices at venues:• Operated by event promoters and/or show and
sporting venues
S A L E S C H A N N E L S
27 years of experience in ticketing for concerts, theater productions,cultural, family and sporting events, among others.
Large number of affiliated venues and promoters for the sale, control anddistribution of tickets to live events.
Certification ISO 9001:2015
Interactive digital community:
@Ticketmaster_Me 1.5 million fans
ticketmaster_mx 134 thousand followers
Ticketmaster_mx 1.3 million followers
17
CIE ENTERTAINMENT
ARTISTIC AGENCY
Agency that represents artists, markets live shows, and that has a record label, with operations in Mexico and Latin America
M A R Í A J O S É
P E P E A G U I L A R
PAT Y C A N T Ú
R Í O R O M A
B R O N C O
H A * A S H
C A I FA N ES
J UA N E S
Y U R I D I AM O E N I A
Z O É
M I G U E L B O S É
A N A TO R R O JA
Á N G E L ES A Z U L E S
M O R AT 18
19Fuente: Pollstar
Boletos Taquilla
1. Live Nation 46,662 $3,808
2. AEG Presents 14,844 $1,407
3. OCESA/CIE 4,610 $240
4. Semmel Concerts Entretainment 3,248 $181
5. Feld Entertainment 3,104 $99
6. Messina Touring Group 2,818 $249
7. FKP Scorpio Konzertproduktionen 2,754 $193
8. SJM 2,688 $215
9. Zignia Live 2,214 $56
10. MDC Productions 2,301 $159
11. Marshall Arts 1,952 $235
12. TEG Dainty 1,836 $185
13. Premier Productions 1,740 $63
14. FPC Live 1,480 $99
15. Another planet Entertainment 1,464 $117
16. T4F 1,175 $57
Boletos Taquilla
1. Foro Sol 882 $44
2. Wembley Stadium 856 $102
3. MetLife Stadium 811 $89
4. Allianz Parque 577 $43
5. Olympiastadion 358 $34
Boletos Taquilla
1. Outside Lands Music & Arts Festival 206 $30
2. Life Is Beautiful Festival 130 $18
3. Lollapalooza Brazil 246 $14
4. Corona Capital 180 $12
5. Southside Festival 62 $12
6. Hurricane Festival 63 $11
7. Paleo Festival 210 $11
8. Bluesfest 105 $11
9. EDC Mexico 219 $11
PROMOTERS, STADIUMS & AMPHITHEATRES – 4Q 2019
(Box office figures in millions of US dollars and thousands of tickets)
THE VENUES WHERE WE OPERATE:
This is the most prestigious of the OCESA properties. This space combines intimacy and the most exclusive entertainment for VIPs
Each guest experiences the most important and anticipated events with unique benefits, such as:
BENEFITS
20
RFID technology that turns a bracelet into a virtual wallet for a better purchasing experience that is more comfortable and faster, creating a more practical and transparent environment for the event’s organization
B E N E F I T S
• Visibility of the user’s expenses
• Monitors transactions / area
• Improved auditing of concession stands
• Innovation in brand activations
1921
Platform that intensifies the experience of people who attend concerts and music festivals, as they become a “special guest”
2022
ARM | Artist Relationship Management
Creative solutions based on international talent that
allows them to identify and connect with their
audiences in a memorable way
• Commercial clients
• Government clients
M A R K E T S
S E R V I C E S
• Hiring talent for public or private events
• Product ambassadors or for specific projects
2123
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
OCESA ENTRETENIMIENTO
REFORESTACION Y PARQUES
Promotion of live events
Operation and administration of show venues
Automated ticketing
Advertising sponsorships for brands, companies and government entities
Sale of food, beverages andsouvenirs
Artistic agency
Operation and development of El Salitre Mágico, an amusement park in Bogotá, Colombia
Event logistics and operation, meetings, exhibitions and conventions
Special and corporate events
Operation of Centro Citibanamex
Government events
Banquet service
Mexican Grand Prix – F1
CIE Entertainment CIE Special Events Other Businesses
CORPORATE STRUCTUREBUSINESS UNITS
LOGRACREACENTRO CITIBANAMEXA LA CARTAMEXICAN GRAND PRIX (F1)
Mexico, Colombia, Central America
Mexico and abroad ColombiaMARKETSSERVED
MAINOPERATIONS
(Numbers in millions of Mexican pesos, unless otherwise indicated)
ENTITIES
25
$ 2,288
$ 527
$ 210
$ 36
$ 11,709
$ 2,336
REVENUES 2019
EBITDA LTM 2019
$ 9,211
$ 1,773
Gran Premio de México 2017Cifras en MM de Pesos Mexicanos
CIE SPECIAL EVENTS
• Broke attendance records with 345,694 fans over the weekend.
• FORMULA 1 MEXICO GRAND PRIX 2019 was full of color thanks to the Guelaguetza parade from Oaxaca.
• DJ Tiësto was the star of the unforgettable closing show and the grand finale of the FORMULA 1 MEXICO GRAND PRIX 2019.
MEXICO GRAND PRIX 2019
Recognition for the 5th consecutive year as best event of the year (FOM)
Recognition as the Best Live Sports Experience in the Leaders Sports Awards 2019
26
27
CIE SPECIAL EVENTS
27
CIE SPECIAL EVENTS
S T R A T E G I C F O C U S
• Creativity and innovation• Event production and integration• Congresses
• Audio, video, lighting• IT & registration• Rigging, display, electricity• Rug, seating, systems
• Operation of Centro Citibanamex• Administration of third-party venues
(exhibitions and congresses only)
• Food and beverages (Centro Citibanamex)• In-home food and beverage service
2628
Tailor-made operating, equipment and logistics solutions for the entertainment market and events, both for CIE and CREA, as well as for third parties
• Rugs / Seating/ Institutional
• Structures / Rigging
• Audio / Video / Lighting
• Electricity generation and distribution
• Video production
• Freight and transport (own equipment)
• Custom displays
• IT systems
• Registration
• Projects / Integration
• Additional services
• Entertainment: producers, promoters and organization of musical and entertainment shows
• Meeting industry: representative organizing committees, meeting planners, professional congress organizers
• Locations: exposition halls and hotels that offer space for congresses, conventions and events
• Agencies: event organizers, production agencies, corporate and social
• Others: companies and governments that hire tailor-made stands for events, trade fairs and expos, among others
EVENT LOGISTICS
CIE SPECIAL EVENTS
E X T E R N A L M A R K E T SS E R V I C E S
29
INNOVATION AND CREATIVITY FOR EVENTS
CIE SPECIAL EVENTS
Corporate communications and experimental marketing agency based on innovation and creativity; solution integrator for CIE and third parties
• Creative study• Innovation and
development• Commercial
operations• Production
• Stands
• Showrooms
• Image design
• Themed pavilions
• Brand integration in
existing spaces
• Brand launches
• Presentation of programs
• Press conferences
• Digital or in-person activations
• Product testing
• Product sampling
• Database creation through activations
• Activity reports
• Business meetings
• Fairs / themed events
• Inaugurations / closures
• Conferences / seminars
• State visits
• Congresses / conventions
• Sporting events
• Vacation events
S P E C I A L E V E N T S
B R A N D S P A C E S
A C T I V A T I O N S
S E R V I C E S
E X T E R N A L M A R K E T S
• Government entities
• Private initiative
• International organizations
• Congress and convention
industry
30
CREA: SPECIAL EVENTS FOR A WIDE VARIETY OF CLIENTS
31
• Promoters and organizers
• Planners
• Government entities
• Private initiative
• Expositions
• Business
• Congresses and conventions
• Social events
• Government events
OPERATION OF EVENT VENUES
CIE SPECIAL EVENTS
The most recognized convention center and expo hall in the B2B and B2C segments in Mexico and Latin America
S E R V I C E S
M A R K E T S
• In operation since 2001 with space of 185,000 m2
• Located inside the Las Américas Complex in Mexico City
• Venue operation + event logistics+ food & beverage service + integration of services
• 90 events per year with 2,000,000 visitors
• 34,283 m2 of expo area
Hall A – 5,103 m2 Hall B – 7,128 m2
Hall C – 8,856 m2 Hall D – 13,196 m2
• 25 convention rooms
• 7,390 people inside rooms
• 42,957 people at maximum capacity
• Parking for 10,000 cars
• 18,000 hotel rooms within a 5-km radius
• 45 minutes from Mexico City’s International Airport
C E N T R O B A N A M E X I N N U M B E R S
32
CATERING SERVICES FOR EVENTS
CIE SPECIAL EVENTS
Food and beverage service for large-scale events such as trade fairs and conventions, festivals, and sporting events (CIE & third parties)
Corporate
Social
Government
Congresses / conventions
Associations & chambers
Sporting events
B A N Q U E T S H O S P I T A L I T Y S P E C I A L O C C A S I O N S
Anniversaries, launches, mergers
Graduations, anniversaries, religious celebrations,
Official visits, government meetings
Guilds, corporate, national, foreign
Anniversaries, change in presidency, shareholders meetings
F1, WGC, tournaments, concerts, festivals
33
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
OCESA ENTRETENIMIENTO
REFORESTACION Y PARQUES
Promotion of live events
Operation and administration of show venues
Automated ticketing
Advertising sponsorships for brands, companies and government entities
Sale of food, beverages andsouvenirs
Artistic agency
Operation and development of El Salitre Mágico, an amusement park in Bogotá, Colombia
Event logistics and operation, meetings, exhibitions and conventions
Special and corporate events
Operation of Centro Citibanamex
Government events
Banquet service
Mexican Grand Prix – F1
CIE Entertainment CIE Special Events
CORPORATE STRUCTUREBUSINESS UNITS
LOGRACREACENTRO CITIBANAMEXA LA CARTAMEXICAN GRAND PRIX (F1)
Mexico, Colombia, Central America
Mexico and abroad ColombiaMARKETSSERVED
MAINOPERATIONS
(Numbers in millions of Mexican pesos, unless otherwise indicated)
ENTITIES
35
Other Businesses
$ 2,288
$ 527
$ 210
$ 36
$ 11,709
$ 2,336
REVENUES 2019
EBITDA LTM 2019
$ 9,211
$ 1,773
EL SALITRE PARK
OTHER BUSINESS
79 acresMore than
30 attractionsand games
El Salitre Mágico, located inside the Simón Bolivar Metropolitan Park in Bogotá, is the most popular and emblematic amusement park in the city
900 thousand visitors per year
36
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
MINORITY INVESTMENTS
Leading company in the live entertainment market in Brazil, Argentina, Chile and Peru:
• Production of live events, large-format theater, sporting events, music festivals
• Marketing of advertising sponsorship for events and properties
• Automated ticketing
Revenues: Ps. 3,161 mNet Income: Ps. 52 mAssets: Ps. 3,599 m
CIE’s stake: 10.05%
I C E L A
Collective for artistic, cultural and entertainment projects based on technology and digital and performance experiences:
• Concept
• Design
• Production
• Integration
• Operation
Revenues: Ps. 191 mNet Income: Ps. 11 mAssets: Ps. 41 m
CIE’s stake: 10.0%
Holding company for the companies that operate inside the Las Américas Complex and throughout Mexico:
• Las Américas Racetrack
• Remote sports betting and numbers- and symbols-based gaming halls
• Centro Citibanamex
• Granja Las Américas
Revenues: Ps. 5,122 mNet Income: Ps. 860 mAssets: Ps. 6,721 m
CIE’s stake: 15.2%
Leading company in integral services and call centers based on outsourcing:
• Customer service and client retention
• Front and back office
• Collections management
• Marketing and sales
Revenues: Ps. 1,106 mNet Income: Ps. 2,689 mAssets: Ps. 691 m
CIE’s stake: 20.0%
*Numbers for the year 2017 3638Note: As of Dec 31, 2018
Introduction to CIE:
Business Model
Our resources and capabilities
Strategic Business Units:
CIE Entertainment
CIE Special Events
Other Businesses
Minority Investments
4Q2019 Results
1
2
3
TABLE OF CONTENTS
4
Sales
40
3,702 3,335
-
2,071
1,302
-
-
91
90
-
2,40 0
4,80 0
7,20 0
4Q 2018 4Q 2019
4,728
-19%
435 516
289 264
2930
$-
100
200
300
400
500
600
700
800
900
4Q 2018 4Q 2019
835
+15%
% Marg. 12.4% 17.7%
5,865
727
EBITDA & Margin
+19%
-10%
Colombia
+5%-1%
+10%-37%
9,487 9,211
2,873 2,288
219210
2018 2019
11,709
-7%
1,608 1,773
364
527 46
36
2018 2019
2,336
+16%
12,5782,017
% Marg. 16.0% 19.9%
+10%-3%
+45%+20%
Colombia
-22%-4%
CONSOLIDATED RESULTS(Figures expressed in millions of Mexican pesos)
CIE Special Events
CIE Entertainment
CIE Special Events
CIE Entertainment
3 179
359 418
239
500(Oct.)
500(Oct.)
2020 2021 2022 2023 2024
Securitized
Bank
41
Expiration Dates
Total: 2,198
Interest Rates
7.48 % + 2.04
Fixed
Variable
TIIE +2.04%
Short Term Long Term
HR HR1 AA-
Fitch F1+ AA-
Ratings
Financial Ratios
Debt 1) 2,198
EBITDA LTM 1) 1,992
Interest Paid LTM 1) 273
DEBT / EBITDA 1.10 x
EBITDA / Int. Paid 7.29 x
503
679
Note: On January 31, 2019, FitchRatings revised upward the CIE ratings: Long Term to AA- from A +
$791
$1,403
$4
1) Does not include the effect of IFRS-16: Leases
RATINGS AND DEBT(Numbers stated in millions of Mexican pesos)
+5255 5201 - 9353