Arn Media Limited · ASX:A1N
Arn Media — Investor Presentation (November 2021)
26 slides from Arn Media's investor presentation, Nov 12, 2021
Slide 1: 'Better Together' Acquisition of Grant Broadcasters
‘Better Together’ Acquisition of Grant Broadcasters 12 November 2021
Slide 2: A transformative transaction creating a national broadcast radio network of scale
A transformative transaction for HT&E, bringing two great businesses together to create a truly national broadcast radio network of scale An acquisition unlocking new growth markets and audiences, with the potential for significant digital audio expansion. This acquisition is highly accretive to HT&
Slide 3: Transaction Summary
Transaction Summary 1 3 Kyle & Jackie O | Sydney
Slide 4: Transaction summary
Transaction summary • HT&E Limited (HT&E) has entered into a binding agreement to acquire the legal entities and certain assets owned by Grant Broadcasters Pty Limited (Grant Broadcasters or the Acquisition) for $307.5 million on a cash and debt free basis (Consideration) • Consideration is payable
Slide 5: Transaction summary
Transaction summary • The Consideration to be funded by: - c.$238 million of cash and debt from HT&E’s cash reserves and existing facilities, including proceeds from disposal of oOh!media stake Funding - HT&E shares issued to the Grant Broadcasters vendors at $1.93 per share(1) at completion of the
Slide 6: Grant Broadcasters
Grant Broadcasters 2 6 Galey, Emily Jade & Christo | Gold Coast
Slide 7: Overview of Grant Broadcasters
Overview of Grant Broadcasters GB: 2-station GB: 1-station HT&E market • Founded in 1942, Grant Broadcasters is a family-owned 8HOT/8MIX (Darwin) and operated regional radio broadcaster • Portfolio includes 46 radio stations, across 26 Markets 4EL/4CCA (Cairns) 4RGR/4RGT (Tow nsville) − 38 FM statio
Slide 8: History of Grant Broadcasters
History of Grant Broadcasters Grant Broadcasters has expanded through acquisitions since the late 1980s 1995: Purchased WAVE FM Wollongong in 2011: Acquired Fairfax regional stations November. 1998: Purchase of 5MU Murray (5CC/Magic Port Lincoln, 5RM/Magic Broadcasting Power FM Muswellbrook launched
Slide 9: Regional Australia Opportunity
Regional Australia Opportunity 3 9 Jade, Straney & Damien | The Illawarra
Slide 10: Regional Australia is a powerful market for advertisers
Regional Australia is a powerful market for advertisers 62% of regional 25–54 year olds 8 of the 10 fastest growing planning to take a holiday within centres are in regional markets Australia in the next year – vs. 54% metro $2.5 billion is spent on hardware supplies in regional Australia $9.1 billi
Slide 11: Regional Radio offers increasing advertising opportunities
Regional Radio offers increasing advertising opportunities Advertisers seek the live and local content Regional expansion Regional Radio has revenue growth potential that Grant Broadcasters can provide Almost a quarter of a million people migrated to Average advertiser spend in regional radio has 36
Slide 12: Financial Overview
Financial Overview 4 12 Wildy | Townsville
Slide 13: Acquisition delivers material scale
Acquisition delivers material scale PF financial profile – LTM June 2021(1,2) Revenue EBITDA 32% 37% $315m $96m(2) 63% 68% 1. HT&E LTM 30 June 2021 calculated as 2HCY20 plus 1HCY21. Grant Broadcasters reports on a 30 June year end. 2. Reflects reporting on a post-AASB 16 basis, in line with HT&E’s r
Slide 14: Highly accretive transaction before revenue synergies
Highly accretive transaction before revenue synergies Highly Disciplined Revenue accretive Valuation Synergies Before synergies and one- Acquisition multiple Ability to leverage client off integration costs reflective of comparable relationships across recent transactions metro and regional networks
Slide 15: Strong underlying earnings and a conservative capital structure
Strong underlying earnings and a conservative capital structure Pro forma financial profile – LTM 30 June 2021(1) Pro forma leverage – 30 June 2021(2) (Post-AASB 16) (Pre-AASB 16) A$ million, 30 June 2021 Net Debt A$ million Pro forma HT&E standalone net debt / (cash) (122.4) H121 interim dividend 9
Slide 16: Strategic Rationale
Strategic Rationale 5 16 Christian O’Connell | Melbourne
Slide 17: Compelling acquisition for audiences, advertisers, our people and shareholders
Compelling acquisition for audiences, advertisers, our people and shareholders Increased scale Materially enhances ARN’s existing audience reach High quality brands and footprint into new markets with significant opportunity to High-quality portfolio of established ‘heritage brands’ with expand digi
Slide 18: Delivering the future needs of audiences and advertising partners
Delivering the future needs of audiences and advertising partners Best-in-class broadcast radio and digital audio business CONTENT DISTRIBUTION COMMERCIALISATION 58 AM/FM STATIONS; 5 METRO & 28 REGIONAL 46 DAB+ STATIONS; RADIO MARKETS AUSTRALIA’S BEST TALENT; LIVE AND LOCAL CONTENT AUSTRALIA’S LARGE
Slide 19: Trading Update
Trading Update 6 19 Erin Phillips & Soda | Adelaide
Slide 20: Trading Update
Trading Update ARN Revenues for the September quarter grew 17% on the prior comparative period, with consistent ratings and a strong commercial offering driving increased yield on certain key stations. October radio revenues finished up 8.1%, ahead of the broader radio market, up 6.1%. Forward booki
Slide 21: Better Together
RiRe Soe Better Together
Slide 22: Appendices
Appendices 22 Marnie & Campo | North Ipswich
Slide 23: HT&E Profit and Loss Statement – Pro forma (30 June 2021)
HT&E Profit and Loss Statement – Pro forma (30 June 2021) Grant Broadcasters A$ million, Last 12 months to 30 June Statutory Exceptional items Reported Pro forma acquisition Revenue before finance income 214.1 - 214.1 100.7 314.8 Other income 7.0 (5.8) 1.2 1.0 2.2 Share of associate profits 7.9 - 7.
Slide 24: HT&E Balance sheet – Pro forma (30 June 2021)
HT&E Balance sheet – Pro forma (30 June 2021) Reported Pro forma impact Pro forma impact Pro forma impact Pro forma impact Pro forma Exit of oOh!media stake Grant Broadcasters Grant Broadcasters A$ million Jun 2021 Tax liability settlement Jun 2021 and H121 dividend contribution(3) acquisition(4) Ca
Slide 25: HT&E Limited / ABN
25 HT&E Limited / ABN 95 008 637 643
Slide 26: Disclaimer
Disclaimer HT&E Limited (HT&E) does not accept any liability to any person, organisation or company for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subje