Slide 1: GTN Limited Conference Presentation
For personal use only GTN Limited Conference Presentation 3 May 2018
Slide 2: Today's presenter
Today’s presenter For personal use only Bill Yde (Managing Director and CEO) Over 35 years of experience in the radio and media industry Co-founded The Australia Traffic Network (“ATN”) in 1997, later co-founding GTN and has served as Chief Executive Officer and President since its inception in
Slide 3: Overview of GTN
For personal use only Section 01 Overview of GTN
Slide 4: A unique business model
A unique business model For personal use only GTN’s unique business model seeks to provide value for both broadcasters and advertisers. GTN has successfully replicated this model in all of its current operating jurisdictions Broadcasters Advertisers Core value proposition Generates real time conte
Slide 5: Value for advertisers
Value for advertisers For personal use only Platform enables advertisers to make a single, cost effective, high impact advertising buy with broad reach Large platform and effective format designed to maximise advertisers’ ROI 1 2 3 Broad reach, covering a large number of High audience engagement Del
Slide 6: Embedded within broadcasters' business models
Embedded within broadcasters’ business models For personal use only GTN becomes embedded in broadcasters’ operations, particularly by converting a cost centre into a profit centre, demonstrated by long-standing relationships with a large number of Affiliates Strong value proposition to Established p
Slide 7: GTN business model
GTN business model For personal use only GTN has demonstrated (in multiple geographies) the ability to achieve revenue growth and margin improvement once a national platform is established, whilst maintaining a relatively constant cost base Revenue Spots inventory Sell-out rate Net spot rate Operati
Slide 8: Recap on the 1H18 Result
For personal use only Section 02 Recap on the 1H18 Result
Slide 9: Key highlights – 1H18
Key highlights – 1H18 For personal use only GTN achieved positive revenue growth in Australia, Brazil and Canada. Key 1H18 highlights 1H18 results1 Revenue growth achieved in Australia, Brazil and Canada (in local currency and AUD) (m) Actual 1H18 Actual 1H17 % chg Revenue growth underpinned by
Slide 10: Overview of 1H18 financial performance
Overview of 1H18 financial performance For personal use only GTN continuing operations achieved growth in key financial metrics (revenue, NPAT, NPATA) in 1H181 Commentary GTN Group revenue Revenue growth of 5.1% driven by: — Solid organic growth in GTN’s core operating geographies Australia, Brazi
Slide 11: Drivers of 1H18 financial performance - Revenue
Drivers of 1H18 financial performance - Revenue For personal use only Strong revenue growth across majority of GTN’s core existing geographies underpinned a solid 1H18 result ATN revenue performance CTN revenue performance 50.1 15.3 47.8 14.7 Actual 1H17 Actual 1H18 Actual 1H17 Actual 1H18 UKTN reve
Slide 12: Drivers of financial performance - KPIs
Drivers of financial performance - KPIs For personal use only The revenue result in each of GTN’s core geographies was underpinned by strong inventory growth across all markets ATN KPIs UKTN KPIs 1H17 1H18 1H17 1H18 (Actual) (Actual) % chg (Actual) (Actual) % chg Radio spots inventory ('000s)1 416 4
Slide 13: Update on growth strategy and outlook
For personal use only Section 03 Update on growth strategy and outlook
Slide 14: GTN's global advertising platform
GTN’s global advertising platform For personal use only GTN’s global advertising platform is a combination of established, market leading businesses and large new market opportunities ATN CTN UKTN BTN Population m 23.5 35.5 64.5 206.1 Years of operation # 21 12 9 6 1H18 Revenue A$m 50.1 15.3 19.9 7.
Slide 15: Consistently high growth in revenue and Adjusted EBITDA
GTN has generated consistently high growth in revenue and Adjusted EBITDA(1) For personal use only Year ended Year ended Year ended June 30, 2015 June 30, 2016 June 30, 2017 CAGR Net revenue 153,484 166,136 178,537 7.9% Adjusted EBITDA(2)(3) 28,598 34,646 48,856 30.7% (1) Results based on continuing
Slide 16: Key drivers of growth
Key drivers of growth For personal use only Recent success in Canada and Brazil has validated the GTN model in offshore jurisdictions. Canada and Brazil represent substantial growth opportunities for GTN going forward CTN BTN Years of operation # 12 6 Radio Audience1 m 14.4 14.5 • Established networ
Slide 17: GTN growth cycle: Revenue follows audience
GTN growth cycle: Revenue follows audience For personal use only Additional affiliates typically result in a net cost to the business until additional inventory is monetised Phase 1: Expand affiliate network & audience Phase 2: Monetise network Sign new affiliate Sell additional inventory Rece
Slide 18: GTN growth strategy – Australia/Brazil/Canada/United Kingdom
GTN growth strategy – Australia/Brazil/Canada/United Kingdom For personal use only Management are focused on capitalising on the strong growth outlook in all markets Australia — Focus on continuing to out-pace the Australia media advertising market by continually educating advertisers as to the va
Slide 19: Appendix A: Additional financial information
For personal use only Appendix A Additional financial information
Slide 20: Reconciliation of non-IFRS measurements back to IFRS
Reconciliation of non-IFRS measurements back to IFRS For personal use only EBITDA, Adjusted EBITDA & NPATA Reconciliation of EBITDA and Adjusted EBITDA to Profit before income tax 1H FY20182 1H FY20172 ($m) 1 Actual Actual Profit before income tax 17.6 17.9 Impairment charge - - Depreciation and amo
Slide 21: Annual Pro Forma Income Statement FY2013-FY2017A
Annual Pro Forma Income Statement FY2013-FY2017A For personal use only Pro Forma Historical Results for FY2013 – FY2017 Pro Forma Historical Results A#039;000s FY2013 FY2014 FY2015 FY2016 FY20171 Revenues 125,004 138,049 153,484 166,136 178,537 Network operations and station compensation (82,391) (85,9
Slide 22: Reconciliation of pro forma to statutory results
Reconciliation of pro forma to statutory results For personal use only Pro forma adjustments to the Actual Statutory Historical Results A#039;000s FY2013 FY2014 FY2015 FY2016 FY20171 Statutory NPAT (19,606) (1,464) (18,169) (17,234) 28,172 1 Pro forma impact of historical divestment 3,085 - - - - 2 IPO
Slide 23: Disclaimer and important information
Disclaimer and important information For personal use only The information contained in this document is general background information about GTN Limited (ACN 606 841 801) (the “Company”) and its activities as at the date of this document. It is in summary form and does not purport to be complete. I