EXHIBIT 99
CISNEROS TELEVISION EL SITIO IAMP
GROUP CTG tu lugar en internet IBERO-AMERICAN
MEDIA PARTNERS
CLAXSON
Interactive Group
The Creation of a Leading Ibero American Branded Content Company
The Cisneros Group of Companies Hicks Muse
This presentation contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's current
expectations or beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements in this presentation address the following subjects:
expected date of closing the merger; future financial and operating
results; and timing and benefits of the merger.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the risk that El Sitio and the assets of the Cisneros Group
and Hicks, Muse, Tate and Furst will not be integrated successfully;
costs related to the merger; inability to obtain, or meet conditions
imposed for, governmental approvals for the merger; inability to further
identify, develop and achieve commercial success for new products,
services and technologies; increased competition and its effects on
pricing, spending, third-party relationships, the subscriber base and
revenues; inability to establish and maintain relationships with
commerce, advertising, marketing, technology and content providers; risk
of accepting warrants in certain agreements; risks of new and changing
regulation in the U.S. and internationally.
For a detailed discussion of these and other cautionary statements,
please refer to El Sitio's filings with the Securities and Exchange
Commission.
TRANSACTION SUMMARY
El Sitio IAMP
tu lugar en internet IBERO-AMERICAN
MEDIA PARTNERS
The Cisneros Group of Companies
Hicks Muse
41.5% ---> CLAXSON <----58.5%
Interactive Group
<PAGE>
PRO FORMA OWNERSHIP
- Cisneros Group 37%
- Hicks, Muse, Tate & Furst 29%
- El Sitio Founders Group 17%
- Public 9%
- Other 8%
HIGHLIGHTS
- Expected to Close Q1'01
- Exchange Ratio: 1:1
- Pro Forma Shares: 109.5 MM
- Tax Free Structure
- Ticker: LCTO (NASDAQ)
- US GAAP/FYE: 12/31
STRATEGIC RATIONALE
- First Mover in Ibero American Multi Media Content
- Solid Business Model
- Revenue predictability and growth
- Business line diversification with operational synergies
- Clear path to profitability
- Valuable & Proprietary Branded Content
- New and Interactive Approach to our Market
-Multi-platform content offering to consumers & advertisers
-One-stop-shopping for advertisers and interactive marketing
-Leverage Leading Brands Across Multiple Platforms
BUSINESS LOGIC
Cross-Promotion - Minimizes cash marketing expenditures by driving viewers
across media
Advertising - Pan-regional one-stop-shop for advertisers across
multiple platforms with a highly targeted audience reach
Content Sharing - Maximizes returns on existing content by using it across
multiple platforms
Broadband Content - Pay TV and broadcast assets position our Internet
business to take advantage of audio and video
streaming
New Media - Combines El Sitio's leading horizontal portal with new
branded vertical channels in selected categories
Cost Savings - Synergies derived from combined general and corporate
administrative functions
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<PAGE>
FINANCIAL HIGHLIGHTS
Pro Forma Consolidated Financial Highlights
(US$ in MM)
Summary Latest 12 Months
Income Statement Ended 6/30/2000
---------------------- ---------------------
Net Revenues $118.7
EBITDA ($ 35.7)
Summary
Balance Sheet As of 6/30/2000
----------------- -------------------
Cash $118.6
Total Assets $588.3
Long-Term Debt $116.3
Stockholders' Equity $409.0
TREMENDOUS MARKET OPPORTUNITY
(Consolidated Aggregate Gross Revenues ("CAGR") For Latin America, the
Iberian Peninsula and the U.S. Hispanic Market In US$MM)
1999 2003 CAGR
projected
increase
------ ------ ---------
Pay TV - Subscription $2,042 $4,614 23%
Pay TV - Advertising $ 715 $1,513 21%
Internet - Advertising $ 199 $2,524 89%
Multiple Revenue Streams and Geographic Diversification are Expected to
Reduce Risk and Drive Growth
Source: IDC, Kagan World Media, Zenith Media and Company Estimates
OUR STRENGTHS
Claxon Interactive Group
Traditional Media
Internet
Brands
Interactive Content
A Unique Integrated Multi-Platform Branded Content Company
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<PAGE>
INTEGRATION OF LEADING BRANDED CONTENT
Pay TV
- Leading Latin American Pay TV Programmer
- Over 40MM aggregate subs as of June 30, 2000
- Playboy International-one of the few global Pay TV networks
Internet
- Leading regional portal
- Leading content verticals
- 500MM quarterly page views
Broadcast
- #1 Radio Group in Chile
- Leading TV Network in Chile
- #1 Network in English Caribbean
Brands
The Adult Channel
AEI Music Latin America
Artistdirect Network
Astrologia Cupido.net
Aurora
batalla cybernaval
Caribbean Communication Network
Chilevision
Corazon FM
Cl@se
Cronica TV
Cupido.net
decompras.com
El Sitio
FM Hit101.7
FMD2S
Futuro
HTV
Infinito
I.sat
Jupiter Comic
Locomotion
MuchMusic
Mujer
Music One
Playboy TV
Pudahuel FM
Rock & Pop
Ruby
Space
Spice
3d.elsitio.com
Uniseries
Venus
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<PAGE>
SUPERIOR MEDIA MODEL: CLEAR PATH TO PROFITABILITY
Claxson Interactive Group
- Brand
- Multiple Leading Consumer Brands
- Pan-regional Presence
- Capture Audience
- High Quality Content
- Interactive Features
- Cross Promotion
- Monetize
- Cross Media Advertising
- Pay TV Subscription Fees
- Interactive Marketing & Database Building
- Invest
- Expand Reach
- Acquisitions & Consolidation
EXPERIENCED MANAGEMENT TEAM
Roberto Vivo - Chairman & CEO
Horacio Milberg - CFO
Benjamin Moody - EVP of Corporate Development & Strategy
Jay Scharer - President of Pay TV
Roberto Cibrian-Campoy - President of Internet
Jaime Vega - President of Broadcasting
10 Board Members including 3 Independent Directors
(3 Cisneros; 2 Hicks Muse; 1 El Sitio Founders Group; 1 CEO; 3 Independent)
TRANSACTION CORNERSTONES
- Solid Business Model
Valuable & Proprietary Branded Content
New Interactive Approach to the Market
DYNAMIC REVENUE MODEL
- Diversified
-Multiple content platforms
-Geographic
- Growing
-Increased cable subscription and penetration
-Traditional and internet media advertising
-Growing global footprint (Playboy TV International)
- Predictable
-Significant contract-based revenue streams
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<PAGE>
PLATFORM & GEOGRAPHIC DIVERSIFICATION
PAY-TV (North America, Central America, South America, Iberian Peninsula)
AEI Music
Cl@se
HTV
I.Sat
Infinito
Jupiter Comic
Locomotion
MuchMusic
Playboy TV
Space
Spice
Uniseries
Venus
INTERNET (North America, Central America, South America)
El Sitio
El Sitio 3d
De Compras
Cupido.net
ARTISTdirect Network
BROADCASTING (Central America, South America)
Radio Chile
Chilevision
Caribbean Communications Network
DIVERSIFIED AND GROWING REVENUE BASE
Claxson's Pro Forma
LTM Ended 6/30/2000
Advertising 40%
Subscription 56%
Other 4%
Total Revenues $119 MM
- Solid Pay TV subscription base
- Highest revenue growth will come from advertising sales
- Pay TV, Internet and Radio advertising market in infancy stage
PAY TV SUBSCRIPTION: PREDICTABLE REVENUE STREAM
-Contract-based revenue stream
-40MM channel subscribers on basic tiers
-New contracts and increased penetration in existing Pay TV systems
-Strong relationships with distribution platforms
The Cisneros Group of Companies --> DirecTV --> Via Digital
Galacy Latin America
Hicks Muse --> CableVision InterCable TV Cidade
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<PAGE>
TRANSACTION CORNERSTONES
Solid Business Model
- Valuable & Proprietary Branded Content
New Interactive Approach to the Market
"MUST HAVE" PAY TV PACKAGE FOR LATIN CABLE SYSTEMS
MUSIC
- MuchMusic Latin America - Leading music TV channel in Southern Cone
- HTV - Premiere pan-regional Latin artist hit
music TV channel
- AEI Music Latin America - Digital service providing over 60 audio
channels
MOVIES
- Space - Leading movie channel in Argentina
- I.Sat - Movie hit shows and music channel for
young adults
FAMILY
- Uniseries - Channel devoted to classic favourite
series
- Locomotion - Vanguard animation channel for young
adults and teens
-Cl@se - Latin America's first regional education
channel
DOCUMENTARY
- Infinito - Channel dedicated to unexplained and
unexplored
ADULT ENTERTAINMENT
- Playboy TV International - Playboy TV, Spice, Venus, and others
COMEDY
- Jupiter Comic - Latin America's only all-comedy channel
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<PAGE>
PAY TV SUBSCRIPTION: SUBSTANTIAL GROWTH POTENTIAL
<TABLE>
<CAPTION>
HTV Space Infinito I.Sat Much Uniseries Loco- Jupiter Playboy Venus Spice
Music motion Comic TV
--- ----- -------- ----- ----- --------- ------ ------- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Argentina X X X X X X X X X X X
Chile X X X X X X X X X
Bolivia X X X X X X X X X
Paraguay X X X X X X X X X
Uruguay X X X X X X X X X
Brazil X X X X X X X
Mexico X X X X X X X
Colombia X X X X X X X
Venezuela X X X X X X X
Peru X X X X X
Ecuador X X X X X X
Caribbean X X X X X X X
Central X X X X X X
Amer.
Spain X X
Portugal X X
US Hispanic X X
Subscribers 6.9 6.0 5.7 5.5 5.1 4.5 4.3 0.8 Premium/PPV
(millions,
as of June
30, 2000)
</TABLE>
Geographic Diversification Mitigates Volatility and Maximizes Growth
Opportunities
-8-
<PAGE>
EXTENSIVE PROGRAM LIBRARY
Leading Pay TV programming library in Southern Cone
-Exhibition Rights
- 19,000 movies
- 1,000 hours of mini-series
- 19,000 episodes of TV drama series and sitcoms
- 10,700 episodes of documentaries and docu-series
- 1,000 episodes of animated series
- 250 musicals and concerts
-Owned Copyrights
- 400 Spanish language Argentine made "Golden Age" feature films and
contemporary productions
PLAYBOY TV INTERNATIONAL FRANCHISE
19.4 million current households
1999 2000 2001
Latin America Israel Eastern Europe
Iberian Penninsula Taiwan Czech Republic
U.S. Hispanic Market Benelux Slav Republic
Japan Belgium Hungary
Scandinavia Netherlands Romania
Turkey Luxemburg Germany
New Zealand Austria
France Switzerland
Italy
Greece
Korea
Poland
Exclusive International Rights to Playboy TV Programming
TRANSACTION CORNERSTONES
Solid Business Model
Valuable & Proprietary Branded Content
- New Interactive Approach to the Market
ACCESS TO HIGH PURCHASING POWER AUDIENCE
(US$)
Target Market Complementary Audience
------------------------------------- ------------------------------
Socio- Annual Purchasing Pay TV Internet
Economic Power Per Target Target
Strata Household Audience Audience
-------------- -------------------- ------------ -------------
A $117,421 Target Audience
B $29,265
C $11,485
D/E $3,542
Target Market of 35 MM Households
Source: Latin America Consumer Market Report, 1999
SUPERIOR SEGMENTATION PROPOSITION FOR ADVERTISERS
INTERNET INTERACTIVITY
Pay TV
Family
El Sitio
Inifinito
decompas.com
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<PAGE>
Cronica TV
Uniseries
Space
Astrologia CupidoNet
Jupiter Comic
Cupido.net
Chilevision
Pay TV/Broadcast
Young Adult/Teenagers
Locomotion
El Sitio
3d.elsitio.com
batalla cybernaval
Astrologia CupidoNet
Cl@se
Bla chat
I.sat
decompras.com
Cupido.net
Corazon.F.M
Music One
HTV
ARTISTdirect network
Aurora
MuchMusic
FMD2S
AEI Latin America
FM Hit101.7
Pudahuel FM
Futuro
Rock & Pop
Broadcast
Adult
Spice
Playboy TV International LLC
Venus
-10-
<PAGE>
ONE-STOP-SHOP FOR ADVERTISERS
GEOGRAPHIC
REACH PAY TV INTERNET BROADCASTING
--------------------- ------ -------- ------------
Pan-Regional X X
National X X X
Local X X
SEGMENTATION
Gender X X X
Age X X X
Interests X X
TARGETING
Broad Demograhic X
Niche Demographic X X
Direct Marketing X
WELL DIVERSIFIED PORTFOLIO OF ADVERTISERS
Arcor
Audi
Bayer
Bellsouth
Blockbuster
British American Tobacco
Budweiser
Calvin Klein
Clorox
Coca-Cola
Colgate-Palmolive Ltda.
Compaq
D&S
Danone
DirecTV
Ford Motors Co.
Haagen-Dazs
Heineken
Kellogg's
L'Oreal Paris
McDonald's
Mercedes-Benz
Metro Goldwyn Mayer
Nestle
Nike
Nintendo
Peugeot
Philip Morris
Polo Ralph Lauren
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<PAGE>
Procter & Gamble
Sun Microsystems
Unilever
Volkswagen
CLAXSON
INTERACTIVE GROUP
FINANCIAL HIGHLIGHTS
FINANCIAL STRENGTH
Strong growth outlook
Substantial revenue and cost synergies
Significant financial flexibility
Strong shareholder commitment
Fully funded business plan
IAMP OPERATIONAL TRACK RECORD
Net Revenues (US$ in MM)
1H99 $40.5
1H00 $54.0
33% growth
EBITDA (US$ in MM)
1H99 $1.5
1H00 $8.3
453% growth
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<PAGE>
EL SITIO OPERATIONAL TRACK RECORD
GROWTH IN REVENUES & PAGE VIEWS
Quarterly Page Views (MM)
2Q99 approximately 50
3Q99 approximately 110
4Q99 approximately 250
1Q00 approximately 400
2Q00 approximately 610
Net Revenues (US$ in MM)
2Q99 $0.5
3Q99 $0.8
4Q99 $5.3
1Q00 $5.6
2Q00 $7.5
ADVERTISING REVENUES PER
THOUSAND PAGE VIEWS
1Q00 2Q00
------- ------
El Sitio $6.88 $8.14
Starmedia $4.79 $5.10
Terra $3.17 $3.30
Note: Management Figures
PRO FORMA FINANCIALS
PRO FORMA NET REVENUES
(US$ in MM)
1H99 2H99 1H00
------ ------ ------
Advertising $15.4 $20.4 $26.8
Subscription $24.2 $30.3 $36.1
Other $ 1.6 $ 1.0 $ 4.1
Total $41.2 $51.7 $67.0
25% Growth from 1H99 to 2H22
30% Growth from 2H99 to 1H00
ACCELERATED PATH TO PROFITABILITY
Increase audience & advertising market share
- Cross-promote content offerings
- Create larger customer base
- One-stop-shop for advertisers
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<PAGE>
Rationalize cost
- Reduce G&A
- Increase sales force efficiency
- Leverage content and branding across platforms
Estimated recurring synergies of US$10-12MM
PRO FORMA FINANCIALS
Twelve months ended 6/30/00 (in US$ MM)
CONSOLIDATED PRO FORMA
INCOME STATEMENT
Revenue $118.7
EBITDA ($35.7)
CONSOLIDATED PRO FORMA
BALANCE SHEET
Cash $118.6
Total Assets $588.3
Long-Term Debt $116.3
Stockholders' Equity $409.0
INVESTMENT HIGHLIGHTS
Leading media convergence in Latin America
Solid business model
Valuable & proprietary branded content
New & interactive approach to our market
Leveraging leading brands across multiple platforms
Strong shareholder commitment
...With a Clear Path to Profitability
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<PAGE>
CISNEROS TELEVISION EL SITIO IAMP
GROUP CTG tu lugar en internet IBERO-AMERICAN
MEDIA PARTNERS
CLAXSON
Interactive Group
The Creation of a Leading Ibero American Branded Content Company
The Cisneros Group of Companies Hicks Muse
SHAREHOLDERS FACT SHEET
The Cisneros Group of Companies
- One of Latin America's most prestigious, largest and diversified
private enterprises
- Leadership in broadcast television, DTH and pay TV programming
through Venevision, Univision, Galaxy Latin America, Via Digital and
Cisneros Television Group
- An investment portfolio of over 50 joint ventures, partnerships and
companies in the United States, Latin America and Europe
- One of the few groups that invests across Ibero America (Latin
America, Spain, Portugal and US Hispanics)
- A strategic focus and over 35 years of experience in building a
global communications enterprise
Hicks, Muse, Tate & Furst
- Over US$2.6 billion invested in media in Latin America
- One of the leading private investment firms in the U.S., Hicks Muse
specializes in leveraged acquisitions of established operating
companies
- Has substantial resources in committed equity capital and the ability
to structure and arrange financing on acquisitions of virtually any
size
- Since its formation in 1989, Hicks Muse has completed or currently
has pending more than 370 transactions with an aggregate capital
value in excess of US$44 billion
- In Latin America, Hicks Muse has invested or committed to invest
approximately US$1 billion in such companies as CEI, Cablevision,
Intercable, MVS Multivision, International Outdoor Advertising, TV
Cidade and the Corinthians Football Club
- Focus on the media and entertainment sector, through control of
significant holdings in Marcus Cable, Sunrise Television, LIN
Television, and Clear Channel Communications
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