Ooh Media Ltd · ASX:OML
Ooh Media — FY2018 Earnings Presentation
24 slides from Ooh Media's earnings presentation, Feb 25, 2019
Slide 1: FY 2018 Results Presentation
FY 2018 RESULTS PRESENTATION 25 February 2019
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Slide 3: Revenue and EBITDA Growth
REVENUE AND EBITDA GROWTH Organic1 revenue $416.8m 10% Organic1 underlying EBITDA $94.2m 5% Revenue NPAT 26.9% (4.3)% $482.6m $31.6m Gross Profit Free cash flow before acquisitions 87.3% $225.7m 28.6% $31.1m Underlying2 EBITDA Statutory EPS 24.9% (19.8%) $112.5m 15.5 cents Underlying2 NPATA3 Total D
Slide 4: Key Operational Highlights
KEY OPERATIONAL HIGHLIGHTS 1. Road performing strongly 1. oOh! continues to drive strong double digit growth in this key format 2. Fly and Locate – great performances 2. Management actions delivered strong double digit revenue growth 3. Lease maturity profile solid 3. 60% of media revenues attached
Slide 5: 27% Revenue Growth – Organic and Acquired
27% REVENUE GROWTH – ORGANIC AND ACQUIRED 3.8% 2.9% 6.7% 8.9% 13.6% FY 2018 FY 2017 Commute Change ($m) ($m) 10.6% Road 14.0% Commute1 65.9 n/a n/a FY18 Pro-forma3 Retail FY18 Revenue 34.7% revenue by by product % product % Road 154.8 137.2 12.9% Fly 20.8% Retail 132.9 135.7 (2.0%) Locate 32.1% Fly
Slide 6: Integration Update
INTEGRATION UPDATE 31st Dec Nov 2019 Adshel rebrands to Coordinated Commute 28th Sep • Synergies expected to client briefing in AU and be $15.0m to $18.0m oOh! + achieved over the next Adshel oOh! In NZ two years 25th Feb • $2.4m of annualised savings locked in during 2018 2019 6 of 7 offices Q4 201
Slide 7: Financial Performance
Slide 8: 2018 – Investing for Future Growth
2018 – INVESTING FOR FUTURE GROWTH FY 20181 ($m) FY 20172 ($m) Change3 • Continued strong revenue growth – organic and acquired Revenue 482.6 380.3 26.9% Cost of media sites and production (256.9) (204.7) 25.5% • Gross profit growth exceeded revenue growth Gross profit 225.7 175.5 28.6% • Underlying
Slide 9: Gearing in Line with Expectations
GEARING IN LINE WITH EXPECTATIONS 31 Dec 2018 ($m) 31 Dec 2017 ($m) Change ($m) • Intangibles increased due to Adshel Cash and cash equivalents 33.0 15.9 17.1 acquisition – purchase price accounting to be finalised in 2019 Trade and other receivables 124.8 81.3 43.5 • Net debt / Underlying EBITDA ra
Slide 10: Strong Operating Cash Flow
STRONG OPERATING CASH FLOW • Net cash flow from operating activities of FY 2018 ($m) FY 2017 ($m) Change $71.2m grew faster than EBITDA representing continued strength in EBITDA 101.0 87.9 14.9% underlying cash flow generation Net change in working capital and 0.7 (4.2) 116.6% • Operating cash flows
Slide 11: Business Strategy
Slide 12: Clear Strategy to Deliver Sustainable Long-Term Growth
CLEAR STRATEGY TO DELIVER SUSTAINABLE LONG-TERM GROWTH REDEFINE OUT OF HOME IN ANZ AS A PUBLIC SPACE MEDIA CAPTIVATING, CONNECTING AND INFORMING CITIZENS NETWORK ADVERTISERS AND AUDIENCES TECHNOLOGY CULTURE AGENCIES Broadest audience Strong relationships with Deliver audience led Exclusive access to
Slide 13: Investment in Capabilities & Systems to Deliver Our Vision
INVESTMENT IN CAPABILITIES & SYSTEMS TO DELIVER OUR VISION Investment areas • Underlying opex up by +32.4% ($27.7m) vs 2017 • Excluding Commute, opex grew +17.9% ($15.3m), representing 15.6% in H2 over the pcp, versus H1 at 20.3% over the pcp. 2018 H2 opex increased by 2.9% over 2018 H1 – a moderati
Slide 14: Technology Program Update
TECHNOLOGY PROGRAM UPDATE ILLUSTRATIVE ACHIEVEMENTS (excluding Commute) • Campaign contract creation and delivery is now automated • Digital campaign approval for property and advertising partners • Transparency and brand safety completed • Optimisation of campaign site selection automated 14
Slide 15: Outlook
Slide 16: Guidance
GUIDANCE • The Out Of Home sector is expected to continue to gain market share across media formats • oOh!media will continue to focus on integrating Commute and rolling out its data analytics platform • Q1 media revenue currently pacing at +9% yoy on a pro- forma basis1 • Guidance for CY2019 Underl
Slide 17: Questions
Slide 18: Appendix
LIFE ISN'T A WAITING ROOM APPENDIX
Slide 19: oOh! Reported Results
oOh! REPORTED RESULTS Adshel (Commute) contribution oOh! Reported consolidated results oOh! excl Adshel FY 2018 FY 2017 Variance Q4 2018 ($m) FY 2017 ($m) Variance FY 2018 ($m) FY 2017 ($m) Variance ($m) ($m) Revenue 416.8 380.3 9.6% 65.9 n/a n/a 482.6 380.3 26.9% Cost of media sites and production
Slide 20: oOh! Proforma Results
oOh! PROFORMA RESULTS Proforma Adshel FY18 oOh! Proforma consolidated results oOh! excl Adshel FY 2018 FY 2017 Variance FY 2018 ($m) FY 2017 ($m) Variance FY 2018 ($m) FY 2017 ($m) Variance ($m) ($m) Revenue 416.8 380.3 9.6% 223.3 227.3 -1.8% 640.1 607.6 5.3% Cost of media sites and production (221.
Slide 21: EBITDA and Other Impacts - AASB16
EBITDA AND OTHER IMPACTS - AASB16 The adoption of the new leading standard AASB 16 which comes into effect 1 January 2019 will have a material impact on the EBITDA, depreciation and interest expense of oOh!media as well as its balance sheet assets and liabilities. oOh! will report under this new sta
Slide 22: Financial Information Notice
FINANCIAL INFORMATION NOTICE oOh!media’s Financial Statements for the year ended 31 December 2018 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
Slide 23: Important Notice and Disclaimer
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, 25 February 2019. The information contained in this presentation is
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