Ooh Media Ltd · ASX:OML
Ooh Media — FY2019 Earnings Presentation
29 slides from Ooh Media's earnings presentation, Feb 24, 2020
Slide 1: FY 2019 results presentation
FY 2019 results presentation 24 February 2020
Slide 2: Highlights
| Highlights © >— 2.2 3h aw). cy 5
Slide 3: FY19 highlights - revenue grew in line with the Out Of Home market and integration on track
FY19 highlights - revenue grew in line with the Out Of Home market and integration on track • Overall media market challenged – declined 5% for traditional media%1 • Out Of Home (OOH) grew by 1%2 in Australia - yet again gaining share as a media category • oOh! held share - growing revenues by 1% •
Slide 4: Revenue growth in a tough media market
Revenue growth in a tough media market Pro forma1 and pre AASB162 Revenue NPAT 1% (32%) $649.6m $27.2m Gross Profit EPS (2%) (27%) $283.3m 11.4 cents Final Dividend5 Underlying3 EBITDA (5%) 7.5 cents, fully - $139.0m franked Underlying3 Gearing6 NPATA4 (10%) - 2.6X $52.4m 1. Pro forma results includ
Slide 5: Multi-format strategy provides resilience to periodic fluctuations in specific products
Multi-format strategy provides resilience to periodic fluctuations in specific products FY 2019 FY 2018 Change • Commute (ex Adshel) grew faster ($m) ($m) % than the broader business and the 3% OOH market 7% Commute 234.8 223.3 5% • Road impacted with a reduction of Road 146.6 154.8 (5%) big brand a
Slide 6: Significant shift in product performance versus pcp in 1H and 2H
The OMA reported a H1 +5.1% increase in gross OOH revenues compared to a -1.7% decrease in H2. oOh! performed in line the broader OOH market across the halves Significant shift in product performance versus pcp in 1H and 2H • Both Commute and Road were impacted in the second half as the two largest
Slide 7: Financial performance
Financial performance
Slide 8: P&L Pro forma and pre AASB16
P&L Pro forma1 and pre AASB162 FY 2019 ($m) FY 20181 ($m) Change3 Revenue 649.6 640.1 1% • Continued revenue growth – in line with OOH market Cost of media sites and production (366.3) (350.3) (5%) • Gross profit declined due to lower than historical revenue growth7 and increased concession renewal
Slide 9: Cash flows
FY 2019 Reported FY Cash flows1 Change ($m) 2018 ($m) • Second half free cash inflows of $45.4m versus a $10.7m outflow in the first EBITDA (pre AASB16) 125.3 101.0 24.3 half result in a 12% free cash flow improvement for FY19 versus the pcp Net change in working • Cash flows include a $7m payment t
Slide 10: Balance sheet
Balance sheet1 31 Dec 2019 ($m) 31 Dec 20182 Change ($m) • Strong positive cash flows in 2H reduced net debt ($m) Cash and cash equivalents 61.2 33.0 28.2 • Gearing flat with 2018 despite the decline in EBITDA Trade and other receivables 133.5 124.8 8.7 • The 31 December balance sheet accounts refle
Slide 11: Business strategy
Business strategy
Slide 12: Short term key objectives
Short term key objectives Integration of Adshel on track against all key milestones • Sales team leadership and structure • Operations team leadership and structure • All offices co-located • Over 70% of media revenues are from clients “We met all of our utilislising at least three formats key miles
Slide 13: 9% CAGR Out Of Home taking share
Out Of Home sector has demonstrated significant and sustained growth¹ Significant tailwinds to drive continued Out Of Home growth FY14 $602m Out Of Home audience Digital enables more creative growing faster than and dynamic content general population opportunities FY17 $837m New advertisers Proven R
Slide 14: Redefine Out Of Home in ANZ as a Public Space Media
Most extensive & Innovative and diversified network disciplined culture • Further digitisation • Growth and innovation opportunity culture • Investments to drive • Coupled with cost and enhanced yield and capex discipline performance • Robust risk • Network optimisation management opportunities as f
Slide 15: Balance commercial lease profile
Balance commercial lease profile Over 60% of revenue attached to leases with an expiry profile in excess of three years • 65% expire after three years $350.0m Revenue maturity profile 60.0% • 23% in CY20 due to the $300.0m 50.9% $321.1m inclusion of Sydney Trains 50.0% and Melbourne Airport $250.0m
Slide 16: Significant progress but still more to do
Significant progress but still more to do • Run rate of approximately 50% of Revenues booked on the new operating platform revenues booked on the new 60.0% operation platform in last weeks of FY19, and approaching 60% as of mid February 2020. This represents 50.0% significant progress during H2 • 10
Slide 17: An experienced leadership team
An experienced leadership team Shelia Lines Brendon Cook Chief Financial Officer Chief Executive Officer Shelia has held several senior financial roles, Founding oOh!media in 1989, Brendon has been extensive organizational, leadership and at the forefront of the Out Of Home industry in governance ex
Slide 18: Outlook
Outlook Highlights
Slide 19: Outlook
Outlook FY 2020 • The Out Of Home sector is expected to continue to gain market share across media formats • February year to date oOh! revenues flat with pcp which had grown +11%1 • Bookings continue to be short and limited visibility • Guidance for FY2020 of Underlying EBITDA pre AASB16 of $140m t
Slide 20: Questions
MODEL TO MAGAZINE MOGUL [BROOKE MEREDITH « A CONSCIOUS COLLECTION
Slide 21: Appendix
Appendix Highlights
Slide 22: Key changes: AASB16 impact on EBITDA, depreciation and interest
Key changes: EBITDA increase of $188.3m offset by a Depreciation and Amortisation FY Pre AASB16 FY Post AASB16 Change1 increase of $168.1m and an Interest expense increase of $39.9m. Resulting NPAT & 2019 ($m) 2019 ($m) NPATA decrease of $13.8m which is temporary and non-cash over the life of lease
Slide 23: Underlying EBITDA Bridge between FY18 and FY19
Underlying EBITDA Bridge between FY18 and FY19 350.0 300.0 250.0 $m 200.0 150.0 100.0 112.5 Reported underlying EBTDA FY2018 33.2 F¥2018 Adshel proforma resuit Underlying EBITDA FY18 to FY19 Bridge 145.7 F¥2018 proforma base as (6.7) Underying FY EBITDA change year on year 139.0 Fr2019 pre AASBI6 EB
Slide 24: FY Pre AASB16 2019
FY Pre AASB16 FY Pre AASB16 Change 2 2019 ($m) 2018 ($m) 1 NPAT 27.2 40.2 (13.0) • Amortisation related to intangibles increased due to the PPA for Adshel being completed in FY19 resulting in a increased non-cash amortisation charge against contract intangibles Add: Non operating items 13.7 11.5 2.2
Slide 25: Note: Net change in working capital includes the $7m 7-Eleven payment
25 Note: Net change in working capital includes the $7m payment relating to exiting the loss making 7-Eleven contract inherited from Adshel
Slide 26: Projected capital expenditure make up
Projected capital expenditure make up Other (e.g. technology, Renewal assets = replacing corporate) existing public infrastructure 15% bus shelters, classic and digital signs following Growth assets property partner concession 41% renewals and maintenance capex Grow assets = new property partner con
Slide 27: Financial statements basis and glossary
oOh!’s Financial Statements for the year ended 31 December 2019 presented in accordance with Australian Accounting Standards. oOh!media has also chosen to include certain non-IFRS financial information. This information has been included to allow investors to relate the performance of the business t
Slide 28: Important notice and disclaimer
Important notice and disclaimer This document is a presentation of general background information about the activities of oOh!media Limited (oOh!media or oOh!) current at the date of the presentation, 24 February 2020. The information contained in this presentation is of general background and does
Slide 29: oOh!media unmissable
coh! unmissable