NZME Limited · NZX:NZM
NZME — Shareholder Meeting (April 2022)
29 slides from NZME's shareholder meeting presentation, Apr 11, 2022
Slide 1: NZME Annual Shareholders' Meeting
For personal use only 11 APRIL 2022 X NZME ANNUAL SHAREHOLDERS’ MEETING KEEPING KIWIS IN THE KNOW
Slide 2: Welcome
For personal use only WELCOME BARBARA CHAPMAN INDEPENDENT CHAIRMAN
Slide 3: Agenda
AGENDA For personal use only Chairman’s Address Chief Executive Officer’s Address Ordinary Resolutions 1: Re-election of Director 2: Auditors Remuneration Matter Raised By Shareholders For Discussion General Business
Slide 4: Barbara Chapman, Independent Chairman
For personal use only BARBARA CHAPMAN INDEPENDENT CHAIRMAN
Slide 5: Chairman's Address: Delivering Shareholder Value
CHAIRMAN’S ADDRESS For personal use only Delivering Shareholder Value ➢ Strong 2021 Financial Results ➢ Clear Strategic Priorities ➢ Commitment to Sustainability ➢ Disciplined Capital Management ➢ Board Reflections 5
Slide 6: 2021 Financial Results
2021 FINANCIAL RESULTS For personal use only • Operating Revenue1 5% • Digital Revenue across the Business1 37% • Statutory Net Profit 138% • Operating Net Profit After Tax1 6% • Total Shareholder Return 103%2 1. Operating results presented are non-GAAP measures that include the impact of NZ IFRS 16
Slide 7: Strategic Priorities
STRATEGIC PRIORITIES For personal use only Customer First Win with Quality Digital Acceleration Audience Expansion Top Performer NEW ZEALAND’S NEW ZEALAND’S YOUR COMPLETE LEADING AUDIO HERALD PROPERTY COMPANY DESTINATION Create New Zealand’s The #1 News brand for Strengthen core residential best loc
Slide 8: Our Sustainability Commitment
OUR SUSTAINABILITY COMMITMENT For personal use only
Slide 9: Capital Management
CAPITAL MANAGEMENT For personal use only Net Debt / Leverage • Repaid remaining debt resulting in a 120.0 2.0 net cash position of $13.5 million as 1.8 at 31 December 2021. 1.5 (Net Debt / 12 month Operating EBITDA) 100.0 1.6 • Dividends totaling 8.0 cents per share 80.0 1.2 have been paid in relati
Slide 10: Board Reflections
BOARD REFLECTIONS For personal use only Barbara Chapman Carol Campbell David Gibson Sussan Turner Guy Horrocks Independent Independent Independent Independent Independent Chairman Director Director Director Director
Slide 11: Michael Boggs, Chief Executive Officer
For personal use only MICHAEL BOGGS CHIEF EXECUTIVE OFFICER
Slide 12: Leading Audience and Customer Centric Brands
LEADING AUDIENCE AND CUSTOMER CENTRIC BRANDS For personal use only Reaches over 1.9 million2 Reaches over 850,0001 • Over 6 million hours are listened monthly through • Over 490,000 Kiwi’s finding their next home at iHeartRadio4 oneroof.co.nz5 • NZ’s #1 radio station & breakfast show on Newstalk ZB2
Slide 13: Keeping Kiwis in the Know
KEEPING KIWIS IN THE KNOW NZME leverages its powerful platforms to inform, improve and foster conversations on key topics For personal use only Ukraine Crisis Appeal with World Vision Talanoa, Voices of the Pacific The 90% Project Kāhu and Te Rito Myth-busting in an age of misinformation Home Truths
Slide 14: Results Summary
RESULTS SUMMARY For personal use only For the full year ending 31 December 2021 $349.2m $66.0m $23.6m Operating Revenue1 Operating EBITDA1 Operating NPAT1 2020 $331.2m 5% 2020 $66.0m 2020 $22.2m 6% $34.4m 11.9cps 8.0 cps Statutory NPAT Operating EPS1 Total Dividends for 2021 2020 $14.5m 138% 2020 11
Slide 15: Market Overview
MARKET OVERVIEW For personal use only Radio Market Revenue1 Print Market Revenue2 Digital Display Market Market Revenue NZME Share Market Revenue NZME Share Revenue3 270.0 41.5% 250.0 48.0% H1 H2 NZME Share 180.0 25.0% 260.0 41.0% 160.0 200.0 250.0 47.5% 24.5% 140.0 40.5% 240.0 120.0 150.0 Millions
Slide 16: Accelerated Digital Revenue Growth
ACCELERATED DIGITAL REVENUE GROWTH For personal use only Digital Audio Revenue Digital Publishing Revenue Digital OneRoof Revenue + 32% + 90% + 51% 80.0 9.0 4.0 8.0 70.0 3.5 + 17% 7.0 60.0 3.0 + 42% 6.0 2.5 50.0 + 53% Revenue ($m) Revenue ($m) Revenue ($m) 5.0 40.0 2.0 4.0 30.0 1.5 3.0 1.0 20.0 2.0
Slide 17: New Zealand's Leading Audio Company
NEW ZEALAND’S LEADING AUDIO COMPANY For personal use only Create New Zealand’s FY 2020 FY 2021 2023 best local audio Achievement Achievement Target content NZME share of total audience Grow broadcast and digital reach > 1% share point 35.6%1 37.4%1 growth per annum Grow market revenue share and digi
Slide 18: New Zealand's Herald
NEW ZEALAND’S HERALD For personal use only The #1 News FY 2020 FY 2021 2023 brand for all Achievement Achievement Target New Zealanders Subscription Volume Target Subscriber first More than 210,000 169,000 191,000 subscribers by subscribers Subscribers Be a safe, scalable 2023 year-end destination f
Slide 19: Your Complete Property Destination
YOUR COMPLETE PROPERTY DESTINATION For personal use only Strengthen core residential listings FY 2020 FY 2021 2023 business Achievement Achievement Target Residential Listings Be indispensable to agents 89%1 91%1 100% of listings Audience Expand the portfolio 459k, 497k, Reduce gap to #1 gap to #1 o
Slide 20: Executive Team
EXECUTIVE TEAM For personal use only Paul Hancox Carolyn Luey David Mackrell Michael Boggs Shayne Currie Chief Commercial Officer Chief Digital and Chief Financial Officer Chief Executive Officer Managing Editor Publishing Officer Paul Maher Katie Mills Allison Whitney Matthew Wilson Jason Winstanle
Slide 21: 2022 Trading Update
2022 TRADING UPDATE For personal use only • The country is still in the midst of the Omicron variant outbreak albeit large cities like Auckland appear to be past the peak. The impact of the outbreak, inflationary pressures and the cooling housing market continues to keep businesses cautious in 2022.
Slide 22: Our People
For personal use only OUR PEOPLE
Slide 23: Ordinary Resolutions
For personal use only ORDINARY RESOLUTIONS
Slide 24: Ordinary Resolution 1: Re-election of Director
ORDINARY For personal use only RESOLUTION 1: RE-ELECTION OF DIRECTOR To consider and, if thought fit, to pass the following ordinary resolution: Sussan Turner That Sussan Turner, who retires by rotation and is eligible for re-election, be re-elected as a Director of NZME.
Slide 25: Ordinary Resolution 2: Auditor's Remuneration
ORDINARY For personal use only RESOLUTION 2: AUDITOR’S REMUNERATION To consider and, if thought fit, to pass the following ordinary resolution: Auditor’s Remuneration That the Directors of NZME are authorised to fix the auditor’s remuneration.
Slide 26: Matter Raised by Shareholders for Discussion
For personal use only MATTER RAISED BY SHAREHOLDERS FOR DISCUSSION NZME advertising and editorial policy independence raised by shareholders who are members of the New Zealand Free Speech Union
Slide 27: General Business
For personal use only GENERAL BUSINESS
Slide 28: For personal use only
ED cheaew Zande =COUNTRY Advocate His VIVA ORIVEN — essence WHANGANUI QOneRoof MIDWEEK Coast NewstalkkZB CHRONICLE hokonuj Torus Taupé & Tirangi “_ Herald fllHerald.Sunday GOLD @rtstaurantius K@pitiNews BusinessDesk. @iHeartRADiO TePukeTimes on leader Hj nzheraldconz POST: Hi canvas TODAY coi ier AL
Slide 29: Disclaimer
DISCLAIMER For personal use only The information in this presentation is of a general nature and does not constitute financial product advice, investment advice, legal, financial, tax or any other recommendation or advice. This presentation constitutes summary information only, and you should not re