Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Southern Cross Austereo — Investor Presentation (October 2014)
64 slides from Southern Cross Media's investor presentation, Oct 30, 2014
Slide 1: Southern Cross Austereo Investor Presentation
For personal use only SOUTHERN CROSS AUSTEREO INVESTOR PRESENTATION 30 OCTOBER 2014
Slide 2: Welcome & Introduction
For personal use only WELCOME & INTRODUCTION RHYS HOLLERAN 2
Slide 3: Presenting management team
For personal use only RHYS HOLLERAN CEO GUY DOBSON EXECUTIVE DIRECTOR METRO CRAIG BRUCE HEAD OF CONTENT Po NICK MCKECHNIE wa RICK LENARCIC EXECUTIVE DIRECTOR REGIONAL ANDREA INGHAM NATIONAL SALES DIRECTOR
Slide 4: Agenda
AGENDA For personal use only 1. Welcome and introduction 2. Group overview and strategic overview 3. Financial summary 4. Metro radio 5. Content strategy 6. Regional media 7. Digital 8. Sales 4
Slide 5: Business Evolution
BUSINESS EVOLUTION For personal use only 1997 - 2003 2004 - 2006 2007 - 2010 2011 - 2014 2015 + Leveraging digital STRATEGIC National Leveraging scale Optimising operations Cross-media diversity platforms THEMES diversification Legislative change BUSINESS Regional Radio Macquarie Regional Southern C
Slide 6: Group Assets
For personal use only GROUP ASSETS 6
Slide 7: Strategic Overview
STRATEGIC OVERVIEW For personal use only YEARS 1 2 3 4 5 Regain metro share • Complementary brand strategy Maintain Leadership Today network regeneration • Talent development • Adapt to device ubiquity • Extend content offering Leverage digital leadership • Utilise deeper profile data Increase opera
Slide 8: Finance
For personal use only FINANCE NICK MCKECHNIE 8
Slide 9: FY14 Financial Summary
FY14 FINANCIAL SUMMARY For personal use only Note: Adjusted Results exclude non-recurring items 9 ($8m onerous contracts)
Slide 10: Revenue Mix – National Scale Brings Diversity
REVENUE MIX – NATIONAL SCALE BRINGS DIVERSITY For personal use only REGIONAL REVENUE FY 14 METRO REVENUE FY 14 (by Market- consolidated TV / Radio) (by Market and Network) • 41 regional markets delivering $360m • 10 metro stations revenue • National platform • 26,000 client accounts • Largest statio
Slide 11: Revenue Mix – Regional Sales
REVENUE MIX – REGIONAL SALES NATIONAL TV NATIONAL RADIO For personal use only Television 31% 13% • 70% CH10 / 30% CH7 & CH9 • 32 Local markets: 12 TV only & 20 multimedia • Radio used to leverage TV – Multimedia markets • Higher power ratios • 66% of total TV revenues • 96% of SC Ten revenues LOCAL
Slide 12: Debt Covenants
DEBT COVENANTS For personal use only Leverage Ratio • $650m term loan facility, maturing January 2019 (fully drawn) 3.6 3.25 3.5 • $50m 2 year ancillary facility (to January 2016, 2.93 undrawn) 2.67 2.66 • $594m net debt at 30 June 2014 June 2013 Dec 2013 June 2014 Leverage ratio calculation 30 June
Slide 13: Reduction in Net Debt
REDUCTION IN NET DEBT For personal use only • Measures to reduce net debt will reduce pressure on leverage covenant • Each $10m reduction in net debt reduces leverage ratio by ̴5-6 bps • Debt reduction measures – DRP implemented for FY14 final dividend $21m – Maturing interest rate swaps ̴$10m ($350
Slide 14: Metro Operations
For personal use only METRO OPERATIONS GUY DOBSON 14
Slide 15: SCA Metro Leads the Category in Scale
SCA METRO LEADS THE CATEGORY IN SCALE For personal use only 4.3M TOTAL RADIO LISTENERS 2.7M 2.2M LISTEN TO THE TODAY NETWORK LISTEN TO THE TRIPLE M NETWORK 15 Source: GfK Radio Ratings. All People 10+, Mon-Sun 5:30-12mn. Survey 6, 2014 5 Metros.
Slide 16: SCA Metro Wins Key Audience Demographics
SCA METRO WINS For personal use only KEY AUDIENCE DEMOGRAPHICS 2.5M 2.1M 2.1M #1 WITH 25 – 54s #1 WITH 18 - 39s #1 WITH MEN 16 Source: GfK Radio Ratings. All People 10+, Mon-Sun 5:30-12mn. Survey 6, 2014 5 Metros.
Slide 17: #1 Audiences Unlock Highest Spend
#1 AUDIENCES UNLOCK HIGHEST SPEND For personal use only 75% 45% 36% AD SPEND AD SPEND AD SPEND #1 WITH 25 – 54s #1 WITH 18 - 39s #1 WITH MEN 17 Source: Roy Morgan data came from June 2014. Oztam data came from January 2014
Slide 18: Ad Spend by Gender Evens Up
For personal use only 39% 36% AD SPEND AD SPEND WOMEN 25-54s MEN 25 – 54s AD SPEND BY GENDER EVENS UP 18 Source: Roy Morgan data came from June 2014. Oztam data came from January 2014
Slide 19: Metro Radio Commercial Imperatives
METRO RADIO COMMERCIAL IMPERATIVES For personal use only • Superstars and new talent drive ratings • Defined environments and brand positioning return results • Leading demographic audiences • Innovation, media firsts, new ideas and partnerships • Deliver high demand client solutions 19
Slide 20: We Win Women
WE WIN WOMEN #1 For personal use only • Fifi and Dave - 1 million listeners • Network for women nationally • Most powerful national female radio personality – Fifi Box • Most engaged social community • Online radio business in Australia Source: GfK Radio Ratings Survey 6 2014. Mon-Fri 6am-9am All Pe
Slide 21: National Shows Deliver Big Numbers
NATIONAL SHOWS DELIVER BIG NUMBERS For personal use only 1.1M HAMISH & ANDY TOTAL LISTENERS 1.4M DAN & MAZ TOTAL LISTENERS 21
Slide 22: Ratings Objectives
RATINGS OBJECTIVES For personal use only • Dominant national brand • Biggest network in the country • National shows deliver national scale • Growth in Sydney • Continue to grow females and brand loyalty • Dominant position 22
Slide 23: Winning Men, Footy, Online and Mobile
For personal use only WINNING MEN, FOOTY, ONLINE AND MOBILE 23
Slide 24: Kicking Goals with Footy Fans
KICKING GOALS WITH FOOTY FANS For personal use only #1 • With all people under 55 in Sydney and Melbourne and Brisbane • With males under 55 in Sydney, Melbourne, Brisbane and Adelaide Source: GfK Radio Ratings, Men 10+ inc All People. Survey #6 2014 - Survey #6 2014 24
Slide 25: AFL & NRL Online Has Seen Huge Growth
AFL & NRL ONLINE HAS SEEN HUGE GROWTH For personal use only Triple M Network Users – Sport 2014 TTD (Jan – July) 3,000,000 2,500,000 YoY 89% Unique Users Unique users 2,000,000 1,500,000 Including: 1,000,000 YoY 153% Mobile Users (73% of total) 500,000 0 YoY 157% 2010 2011 2012 2013 2014 Average tim
Slide 26: Interaction with AFL & NRL via Apps and Tipping
INTERACTION WITH AFL & NRL VIA APPS AND TIPPING IS ALSO IN GROWTH For personal use only participants participants 26 Source: App Annie Analytics
Slide 27: Ratings Objectives
RATINGS OBJECTIVES For personal use only • Consistency nationally • Growing impact, loyalty and position with males • Ratings = revenue with growth to come 27
Slide 28: SCA Melbourne
SCA MELBOURNE For personal use only • #1 FM radio in Melbourne – Fox FM • More listeners than any other station in the country – Fox FM • Dan & Maz #1 FM share in drive – Fox FM • #1 FM breakfast show - Triple M’s Hot Breakfast with Eddie McGuire, Mick Molloy & Luke Darcy is the • #1 in footy with t
Slide 29: SCA Sydney
SCA SYDNEY For personal use only • More women listening in breakfast & drive • 2Day creates a a great launch pad for 2015 • Dan & Maz in drive deliver a 9.4 share of women U40 • #1 with men 18 - 44 in breakfast - Triple M’s The Grill Team with Matty Johns, Mark Geyer & Gus Worland • #1 in footy with
Slide 30: SCA Brisbane
SCA BRISBANE For personal use only • #1 with women 18-24 – B105 • #1 FM with males 10+ - Triple M • #1 men 25-54 - Triple M Source: GfK Radio Ratings Survey 6 2014. Brisbane. Males 10-54 Friday 30 19:00-22:00; Saturday 12:00-15:00; Sunday 12:00-18:00. Share %
Slide 31: SCA Adelaide
SCA ADELAIDE For personal use only • New station brand hit107 launches • #1 in drive with Dan & Maz with females 25-39 • #1 with men 25-54 – Classic Triple M Source: GfK Radio Ratings Survey 6 2014. Adelaide. Males 10-54/All People 31 10+ Friday 17:30-22:30; Saturday 11:30-22:00; Sunday 12:30-17:30.
Slide 32: SCA Perth
SCA PERTH For personal use only • 92.9 is on the rise with 15,000 new listeners tuning in • Heidi, Will & Woody for breakfast win social and online • #1 station overall in Perth – mix94.5 Source: GfK Radio Ratings Survey 6 2014 Source: Nielsen Online Ratings - Market Intelligence (Domestic) excl. mu
Slide 33: Content
For personal use only CONTENT CRAIG BRUCE 33
Slide 34: Southern Cross Austereo – Engaging
For personal! use only Z Nf. JS \ SOUTHERN CROSS AUSTEREO engaging
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Slide 36: Years Talking Together / Research Shows Audience Appeal
For personal use only 5 YEARS TALKING TO RESEARCH SHOWS TOGETHER 1.4 MILLION AUDIENCE APPEAL 36
Slide 37: Old vs New
For personal use only OLD VS NEW 37
Slide 38: Youthful, Fresh, Of the Moment
For personal use only YOUTHFUL, FRESH, OF THE MOMENT 38
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Slide 41: Most Listened to Station in Australia
MOST LISTENED TO STATION IN AUSTRALIA 1 MILLION TUNING IN
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Slide 44: Hit – Move to It
For personal use only hit 107 MOVE TO IT
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Slide 47: Hit – Move to It
For personal use only hit 107 MOVE TO IT
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= | aa - Ajuo osn feuosied 104 48
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Slide 50: #1 Men
For personal use only #1 MEN 25 - 54
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Slide 53: Triple J / 104.7 brands
VAG & ~ sen be é Se 104.7 TRIPL J) & \
Slide 54: Football coverage
For personal use only ea oi P. NE SP | be hicen FEM eee eee NS ele] €}FOOTBALL
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Slide 57: Southern Cross Austereo – Engaging
For personal! use only Z Nf. JS \ SOUTHERN CROSS AUSTEREO engaging 57
Slide 58: Depth of SCA Talent Pipeline
DEPTH OF SCA TALENT PIPELINE For personal use only 58
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Slide 60: Having Already Worked in Albury, Bunbury, Gosford and Newcastle
For personal use only HAVING ALREADY WORKED IN ALBURY, BUNBURY, GOSFORD AND NEWCASTLE 60
Slide 61: 130,000 and 222,000 Listeners
130,000 222,000 LISTENERS LISTENERS For personal use only 61
Slide 62: Southern Cross Austereo – Engaging
For personal! use only Z Nf. JS \ SOUTHERN CROSS AUSTEREO engaging 62
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