Slide 1: FY 2020 results presentation
FY 2020 results presentation 22 February 2021
Slide 2: Highlights
Highlights 2
Slide 3: Highlights
Highlights • Revenue recovery and increased market share • Increased market share1 - focus on suburban and regional audiences where oOh! has significant network strength • Overall business pacing at 70% of 2019 in Q4 versus 57% in Q3. Road, Retail, Street Furniture and New Zealand - strong recovery
Slide 4: FY 2020 key financials
FY 2020 key financials Strong free cash flow in a tough environment Pre AASB161 outcomes and changes vs the pcp Revenue NPAT (34%) (188%) $426.5m ($23.9m) Gross Profit EPS (36%) (148%) $180.2m (4.8 cents) Final Dividend COGS and Opex (29%) No dividend n/a $363.4 declared Underlying2 Gearing EBITDA (
Slide 5: Business update
FRESHEN UP BEHIND THE MASK.
Slide 6: Revenues recovering and market share increasing
Revenues recovering and market share increasing Q3 and Q4 delivering significant improvements in Commute, Road and Retail ▪ Q4 showed improvement on Q2 and Q3 as FY FY 2020 FY 2019 Change Q1 % Q2 % Q3 % Q4 % audiences continued to recover to pre- ($m) ($m) COVID levels – share gained1,2 % vs pcp 4%
Slide 7: Audience led revenue improvement in H2
Audience led revenue improvement in H2 oOh! Australia revenue pacing vs audience1 pacing (vs pcp) 120% ▪ New Zealand rapidly accelerated to circa 80+% of pcp 100% pacing after the initial lock down ended on 15 June2 80% ▪ Australia also improved but at a slower rate given the 60% impact of the Q3 Vi
Slide 8: Significant revenue recovery in key formats
Significant revenue recovery in Audience impacted format FY19 revenue contributions Road, Retail, Street and NZ 15% Road/Retail/Street/NZ Pacing FY19 weighting % 10% Fly FY19 weighting % oOh! revenue pacing by audience impacted format (monthly pcp vs FY19) 140% 75% Office/Rail Pacing FY19 weighting
Slide 9: $120m+ achieved in cash savings
$120m+ achieved in cash savings – focused execution Item Committed at FY20 Comment capital raise1 Achievement Fixed rent expense $10m to $15m $63m • $68m of fixed rent savings for FY20, with $5m of substituted variable rent resulting in a net rent savings of $63m2 savings • Separately $16m of fixe
Slide 10: Rent abatements – FY21
Rent abatements – FY21 Abatements expected to taper off – quantum and timing will be influenced by conditions 85% of the $63m FY20 net rent FY20 $63m Net rent abatements FY20 $63m Net rent abatements – abatements were from landlords in the by Format applicability to FY21 highly impacted Airport, Rai
Slide 11: Progress on strategic initiatives
Progress on strategic initiatives Adshel integration completed and ongoing digitisation of key location large format sites Focusing on investing for the recovery cycle Adshel integration completed ▪ The Adshel integration was completed and Sydney and Melbourne CBD based teams cohabiting a single off
Slide 12: Financial performance
Financial performance 12
Slide 13: 2019 to 2020 EBITDA Bridge
2019 to 2020 EBITDA Bridge Natural stabilisers Active cost base management External support ▪ oOh!'s natural variable component of its cost base complemented by management actions ▪ Rent abatements contributed a circa $63m reduction in the net fixed rent base ▪ STI and LTI1 are non-cash 13 1) 1) Sho
Slide 14: Decisive cost actions helped mitigate revenue decline
Decisive cost actions helped mitigate revenue decline ▪ Revenue decrease buffered through significant rent and other cost savings P&L pre AASB161 FY 2020 ($m) FY 2019 ($m) Change ($m) ▪ 1.4% modest gross margin decline given the 34% decrease in revenues Revenue 426.5 649.6 (223.1) Cost of media site
Slide 15: Strong cash flow management
Strong cash flow management ▪ First half free cash inflows of $77.8m compared to a Cash flows1 FY 2020 ($m) FY 2019 ($m) Change ($m) ($10.7m) outflow in the pcp, followed by $5.7m in inflows EBITDA (pre AASB16) 59.9 125.3 (65.4) in H2 vs $24.1m in pcp Net change in working capital and 45.1 (7.1) 52.
Slide 16: Gearing 1.8X and trending downwards
Gearing 1.8X and trending downwards ▪ Strong receivables collection and cost Balance sheet1 31 Dec 2020 ($m) 31 Dec 2019 ($m) Change ($m) savings complemented the capital raising Cash and cash equivalents 80.0 61.2 18.8 to reduce net debt Trade and other receivables 85.5 133.5 (48.0) ▪ Gearing reduc
Slide 17: Strong foundations
Strong foundations 17
Slide 18: Out Of Home platform for growth
Out Of Home platform for Audience Population Growth More data increasing growth New advertisers attracted to sector/Advertisers increasing understanding of audience demographics and advertiser ROI OOH spend PWC1 - Advertising Media Growth Proven ROI when OOH formats and other media 18 Digital enabli
Slide 19: oOh! is well positioned to capitalise on Out Of Home recovery
oOh! is well Most extensive & Innovative and diversified network disciplined culture • Further digitisation • Growth and innovation positioned to opportunity • Investments to drive culture • Coupled with cost and capitalise on enhanced yield and capex discipline performance • Robust risk • Network o
Slide 20: Balanced commercial lease profile
Balanced commercial lease profile Nearly 60% of revenue attached to leases with an expiry profile in excess of three years Revenue maturity profile $350.0m 50.0% FY191 revenue base: 46.8% 45.0% • No individual concession contributes more than 6% of $300.0m 40.0% group revenue $292.3m $250.0m 35.0% •
Slide 21: Outlook
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Slide 22: Outlook
Outlook FY 2021 ▪ Q1 overall revenue to date pacing at 80% of FY19 ▪ Road, Retail, Street Furniture and New Zealand pacing at nearly 100% year to date ▪ Office and Rail audience environments improving, timing of Fly recovery uncertain ▪ oOh! #1 in the market and continues to promote its suburban met
Slide 23: Questions
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Slide 24: Appendix
Appendix 24 Highlights
Slide 25: oOh! gained share in key advertiser categories
oOh! gained share in key advertiser categories – SMI1 oOh! Australian revenues by category2 SMI: oOh Top 5 advertiser categories vs all Out Of Home Food/Produce/Dairy 10% Domestic Banks Travel Automotive Brand 9% Retail Retail 38% Travel 6% Insurance Food/Produce/Dairy Restaurants Domestic Banks 9%
Slide 26: AASB16 Reconciliation
AASB16 Reconciliation FY 2020 FY 2020 Change 1 Key changes: EBITDA increase of $178.4m offset ▪ Depreciation and amortization costs are Pre AASB16 ($m) Post AASB16 ($m) ($m) by a Depreciation and Amortisation increase of disproportionally high on adoption of AASB16 $158.1m and an Interest expense in
Slide 27: NPAT to NPATA reconciliation
NPAT to NPATA reconciliation FY 2020 FY 2019 Change 1 Pre AASB16 Pre AASB16 ($m) ($m) ($m) NPAT (23.9) 27.2 (51.1) Add: Non-operating items 3.2 13.7 (10.4) Less: tax impact of non- (0.1) (3.0) 2.9 operating items Underlying NPAT (20.7) 37.9 (58.6) Add: Amortisation relating to 18.1 20.7 (2.6) acquir
Slide 28: FY20 Net debt bridge
FY20 Net debt bridge ▪ Early capital raise $162m in net proceeds ▪ Strong receivables collection, substitution of pre-paid fixed rent to post-paid variable rent, and tax refunds further reduced net debt ▪ Rent payments in advance movements for ROU assets are not included in working capital assets –
Slide 29: Financial information notice
Financial information notice oOh!’s Financial Statements for the year ended 31 December 2020 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
Slide 30: Important notice and disclaimer
Important notice and disclaimer Important notice and disclaimer Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors
Slide 31: Sydney Melbourne Brisbane
Sydney Melbourne Brisbane Level 2, 73 Miller St, North Sydney, Level 3,101 Moray St, South Melbourne, 54 Doggett St, Newstead, NSW, 2060, Australia VIC, 3182, Australia QLD, 4006, Australia Tel: +61 (2) 9927 5555 Tel: +61 (3) 8598 0700 Tel: +61 (7) 3620 2900 Adelaide Perth Auckland 84 Frome St, Adel