Ooh Media Ltd · ASX:OML
Ooh Media — FY2021 Earnings Presentation
34 slides from Ooh Media's earnings presentation, Feb 21, 2022
Slide 1: FY 2021 Results
21 February 2022 FY 2021 Results 21 February 2022
Slide 2: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Sheila Lines (CFO) • FY 2021 Highlights • Revenue and audience performance • Financial results • The opportunity for growth • Lease maturity profile • Outlook and wrap up • Questions
Slide 3: FY 2021 Highlights
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Slide 4: FY 2021 Highlights
FY 2021 New large format digital – Highlights Gordon, Sydney Revenue recovery Well positioned for rebound Earnings leveraged to growth • FY revenues up 18% and strong • Fundamental appeal of Out Of Home as • Underlying EBITDA grew by 24% momentum into the fourth quarter - an effective advertising me
Slide 5: FY 2021 Key Financials
FY 2021 Key Financials Significantly improved revenue and EBITDA Pre AASB161 outcomes and changes vs the pcp Revenue NPAT 18% 103% $503.7m $0.8m Gross Profit EPS 23% 103% $222.0m 0.1 cents COGS & Opex Dividend dividends 17% $426.2m 1c final dividend reinstated Underlying2 Gearing EBITDA 24% 1.0X 0.8
Slide 6: Revenue and audience performance
Revenue and audience performance
Slide 7: Revenues in key formats recovered strongly
Revenues in key formats recovered strongly Road surpassed 2019 revenues • +18% FY revenue growth led by 2% 3% Change FY21 % 3% FY2021 FY 2020 H121 % H221 % broadcast formats, with Road Formats1 % vs vs FY ($m) ($m) vs pcp vs pcp 36% pcp 2019 outperforming 2019 Street & Rail 182.1 148.1 23% (22%) 26%
Slide 8: Q4 momentum in key formats
Q4 momentum in key formats Strong uplift in key format revenues following lockdowns 15% oOh! revenue pacing by audience impacted Pre COVID - FY19 Road/Retail/Street/NZ FY19 weighting % format (monthly vs FY19) media revenue 10% Fly FY19 weighting % 140% contributions 26 21 Locate/Rail FY19 120% Jun
Slide 9: Road – strong recovery post lockdowns in key markets
Road – strong recovery post ‘20/21 lockdowns in key markets Revenue following audience trends1 and demonstrating the appeal of Billboards as a demanded advertising medium VIC Road Metro weekly audience vs pre-COVID LTM NSW Road Metro weekly audience vs pre-COVID LTM moving average moving average 180
Slide 10: Financial Results
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Slide 11: Revenue recovery delivers operating leverage
Revenue recovery delivers operating leverage • Underlying EBITDA growth achieved with revenue recovery P&L pre AASB161 FY 2021 ($m) FY 20204 ($m) Change ($m) • Gross margin of 44.1%, up 1.8 percentage points due to revenue increase and strong Road Revenue 503.7 426.5 77.2 performance (margin mix). F
Slide 12: Rent abatements – FY 2021
Rent abatements – FY 2021 Abatements – quantum and timing will be influenced by conditions 1 $37m2 in net rent abatements received by format • Almost 100% of the FY21 net rent abatements were in the highly impacted Airport and Rail environments • H2 abatements of $18m vs $19m in H1 16 21 • Reduced r
Slide 13: Improved earnings generating strong cash flows
Improved earnings generating strong cash flows • Free cash inflows of $51.7m, with operating cash flows 79% of EBITDA Cash flows1 FY 2021 ($m) FY 2020 ($m) Change ($m) • FY20 benefitted from a $20m working capital unwind as the revenues fell relative to FY19 due to COVID-19 EBITDA (pre AASB16) 81.3
Slide 14: Strong balance sheet - gearing significantly reduced to 0.8x
Strong balance sheet - gearing significantly reduced to 0.8x Balance sheet1 31 Dec 2021 ($m) 31 Dec 2020 ($m) Change ($m) Cash and cash equivalents 60.0 80.0 (20.0) • Strong cash generation from improved earnings and Trade and other receivables 99.8 85.5 14.3 lower capex versus long term levels have
Slide 15: The opportunity for growth
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Slide 16: Out of Home Sector Resumes Structural Growth
Out of Home Sector Resumes Structural Growth Industry takes united steps toward advancements and innovation to make the medium easier to plan, measure and buy PWC Media Outlook 13% OOH CAGR – July 20211 • All major Out of Home operators have now joined the industry body - OMA, with a strong and coll
Slide 17: oOh!media will maintain its focus on the core Out of Home sector
oOh!media will maintain its focus on the core Out of Home sector Strategic Intent Investments Divestments: oOh!media will maintain focus on the Investment in digitisation of the We have largely completed the core Out of Home sector and the network across all formats – cementing divestment from posit
Slide 18: oOh! will grow its earnings through four pillars
oOh! will grow its earnings through four pillars Disciplined approach to Digitisation of network Revenue growth Digital Customer Experience maximise operating leverage • Continue to establish the buying • Launched Better Ways to Buy • Revenue growth provides • Current base of more than currency of a
Slide 19: The Digital Opportunity
The Digital Opportunity More than just screens – A dynamic canvas DYNAMIC, DATA SUPERIOR AUDIENCE NEW INDUSTRY MEASUREMENT CONTEXTUAL MESSAGING REAL TIME FLEXIBILTY NEW TECHNOLOGY DRIVEN CONTENT TARGETING MOVE 1.5 enabled – DOOH provides advertisers Digital Out Of Home can Advancements overlaying Pr
Slide 20: Lease Maturity Profile
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Slide 21: Balanced commercial lease profile
Balanced commercial lease profile Over 50% of revenue attached to leases with an expiry profile in excess of three years Adjusted1 Revenue Maturity Profile - 2021 250.0 60.0% CY211 revenue base: • No individual concession contributes more 50.0% than 7% of CY21 group revenue or 6% of CY19 200.0 47.9%
Slide 22: Outlook
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Slide 23: Outlook
Outlook Good start to 2022 • Total Q1 revenues currently pacing +15% higher than Q1 2021 at this time last year, and at 93% of Q1 2019. The combined Road, Retail and Street formats across Australia and New Zealand are pacing at +14% higher than Q1 2019 and audience levels in February have returned i
Slide 24: Wrap Up
Wrap Up oOh! set for growth Solid result in FY21 with positive momentum into FY22 • 18% revenue uplift as audiences return to key formats • Strong operating leverage delivers margin expansion with Underlying EBITDA up 24% Financial position supporting return to Out Of Home fundamentals remain positi
Slide 25: Questions
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Slide 26: Appendix
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Slide 27: Advertising category performance - SMI
Advertising category performance - SMI1 2021 SMI category share for Out Of Home SMI Agency Spend 2021 Pacing vs 2019 -60% -40% -20% 0% 20% 40% 60% Retail 9% Government Alcoholic Beverages Food/Produce/Dairy 8% Food/Produce/Dairy Automotive Brand Retail 41% 7% Communications Domestic Banks Restaurant
Slide 28: AASB16 Reconciliation
AASB16 Reconciliation FY 2021 FY 2021 Change 1 Key changes: EBITDA increase of $159.0m ▪ Depreciation and amortization costs are Pre AASB16 ($m) Post AASB16 ($m) ($m) offset by a Depreciation and Amortisation disproportionally high on adoption of increase of $140.1m and an Interest expense AASB16 co
Slide 29: 2020 to 2021 EBITDA Bridge
2020 to 2021 EBITDA Bridge ▪ Growth in EBITDA driven by revenue recovery in key formats: Road, Retail and Street Furniture ▪ Rent abatements lower than pcp with certain abatement arrangements ending in 2020 ▪ Reversals of temporary COVID labour cost savings in FY20 and government subsidies totaled $
Slide 30: NPAT to NPATA reconciliation
NPAT to NPATA reconciliation FY 2021 FY 2020 Change 1 Pre AASB16 Pre AASB16 ($m) ($m) ($m) NPAT 0.8 (24.3) 25.1 Exclude: Non-operating items (3.7) 3.2 (7.0) Less: tax impact of non- 1.1 (0.1) 1.2 operating items Underlying NPAT (1.8) (21.2) 19.4 Add: Amortisation relating to 20.7 18.1 2.6 acquired i
Slide 31: FY 2021 vs FY 2019
FY 2021 vs FY 2019 P&L pre AASB161 FY 2021 ($m) FY 2019 ($m) Change ($m) Revenue 503.7 649.6 (145.9) Cost of media sites and production (281.7) (366.3) 84.6 Gross profit 222.0 283.3 (61.3) Gross profit margin (%) 44.1% 43.6% 0.5 ppts Total operating expenditure (144.5) (144.3) 0.1 Underlying EBITDA
Slide 32: Financial information notice
Financial information notice oOh!’s Financial Statements for the year ended 31 December 2021 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 33: Important notice and disclaimer
Important notice and disclaimer This document is a presentation of general background information about the activities of Forward looking statements are provided as a general guide only, and should not be relied on as oOh!media Limited (oOh!media or oOh!) current at the date of the presentation, 21
Slide 34: Office locations
Sydney T +61 (2) 9927 5555 Level 2, 73 Miller Street North Sydney NSW 2060 Melbourne T +61 (3) 8598 0700 Level 3, 101 Moray Street South Melbourne VIC 3205 Brisbane T +61 (7)3620 2900 56 Doggett Street Newstead QLD 4006 Adelaide T +61(8)8367 3222 84 Frome Street Adelaide SA 5000 Perth T +61 (8)6160