Ooh Media Ltd · ASX:OML
Ooh Media — 1H 2022 Earnings Presentation
38 slides from Ooh Media's earnings presentation, Aug 22, 2022
Slide 1: Half Year Results Presentation
oOh!media Limited ABN 69 602 195 380 22 August 2022 ASX Release HALF YEAR RESULTS PRESENTATION oOh!media Limited (ASX:OML) (oOh!) in accordance with ASX Listing Rules attaches the 2022 Half Year presentation. This announcement has been authorised for release to the ASX by the Chief Executive Officer
Slide 2: 1H 2022 Results
1H 2022 Results 22 August 2022
Slide 3: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Chris Roberts (CFO) • 1H 2022 Highlights • Financial results • Delivering on growth strategy • Outlook and wrap up • Questions
Slide 4: 1H 2022 Highlights
1H 2022 Highlights
Slide 5: 1H 2022 Highlights
1H 2022 Highlights Strong return to revenue growth and positive earnings leverage • Revenues of $276.1m (up $26.0m or 10% on the pcp) with Road, Retail and Street Furniture above 2019 (pre-COVID) for 1H, continuing the momentum from Q4 2021 • Adjusted Underlying EBITDA1 of $51.5m, increasing by $19.
Slide 6: 1H 2022 Key Financials
1H 2022 Key Financials A resilient business model delivering operating leverage KEY PERFORMANCE METRICS STATUTORY METRICS Revenue Gross Profit 10% 10% $276.1m $198.8m Adjusted Gross Opex Margin1 2.6 ppts 2% $67.0m 44.8% Adjusted Underlying EBITDA EBITDA1 62% 17% $131.8m $51.5m Adjusted NPAT1 NPAT 81
Slide 7: 1H 2022 Revenue above pre COVID-19 levels in key formats
1H 2022 Revenue above pre COVID-19 levels in key formats Double digit revenue growth led by audience return and advertiser demand for broadcast formats • +10% revenue growth led by broadcast formats, 1H Q1 Q2 with Road, Retail and Street outperforming 1H 2019 Formats1 1H 2022 1H 2021 Change Change C
Slide 8: Financial Results
Financial Results
Slide 9: Adjusted vs Statutory Results
Adjusted vs Statutory Results Adjusted vs Statutory – underlying economic growth significantly stronger than statutory result Adjusted Financials Reported Financials +10% 276.1 276.1 +10% 250.1 250.1 +10% 198.6 +17% 179.8 123.6 105.3 +18% 131.6 111.5 31.8 +62% 51.5 1H 2021 $M 1H 2022 $M 1H 2021 $M 1
Slide 10: Revenue growth leverage delivering strong earnings uplift
Revenue growth leverage delivering strong earnings uplift ADJUSTED P&L1 1H 2022 ($m) 1H 2021 ($m) Change ($m) • Increase in revenue coupled with strong operating leverage delivered a 62% growth in adjusted underlying EBITDA and 810% growth in adjusted NPAT on the pcp Revenue 276.1 250.1 26.0 Cost of
Slide 11: Strong double digit NPAT and EBITDA uplift
Strong double digit NPAT and EBITDA uplift REPORTED P&L 1H 2022 ($m) 1H 2021 ($m) Change ($m) Revenue 276.1 250.1 26.0 • NPAT grew 166% on the pcp, following an increase in revenue Cost of media sites and production (77.5) (70.2) (7.3) coupled with strong operating leverage, delivering 17% growth in
Slide 12: Rent abatements – 1H 2022
Rent abatements – 1H 2022 Abatements – quantum and timing will be influenced by conditions 1 $7.3m2 in net rent abatements received by format • All 1H 2022 net rent abatements were in the audience and revenue impacted Airport and Rail environments • 1H 2022 abatements of $7m vs $19m in 1H 2021, due
Slide 13: Growing earnings generating strong operating and free cash flows
Growing earnings generating strong operating and free cash flows • Free cash inflows of $31.7m, with operating cash flows 77% of EBITDA Cash flows1 1H 2022 ($m) 1H 2021 ($m) Change ($m) Adjusted EBITDA 51.5 33.2 18.4 • Stronger EBITDA compared to the pcp resulting in an increase in cash from operati
Slide 14: Interim dividend reinstated and buyback program announced
Interim dividend reinstated and buyback program announced Balance sheet1 30 Jun 2022 ($m) 31 Dec 2021 ($m) Change ($m) • Strong cash generation from improved earnings and lower capex versus long term levels have further reduced Cash and cash equivalents 63.9 60.0 3.9 net debt by 37% and gearing to 0
Slide 15: Delivering on growth pillars
Delivering on growth pillars
Slide 16: Focus of oOh!media – growth strategy
Focus of oOh!media – growth strategy Grow Revenues Expand Margins Increase ROI • Lead the industry in growing the • Continued disciplined rent • Revenue growth coupled with Out Of Home sector structures expanding margins driving free cash flow • Continue investing in the largest • Investing in growt
Slide 17: Grow revenues
Lead Out Of Home market growth • Structural growth of OOH returning and growing to 11.6% of all agency media revenue over the half. OOH took 14.1% of all agency revenue growth1 • Launch of 378 new digital sites, including 11 new Road digitals and 21 new and upgraded Retail centres Grow revenues • La
Slide 18: Expanding operating margins
Expanding operating margins • Disciplined in committing to contracts that are desired and willingness to walk away from expired or new contracts that don’t meet targeted criteria • Consolidated commercial teams now under a single executive leader and continued reprioritisation of resources to growth
Slide 19: Increase ROI
Enhance returns to investors • Return on Invested Capital1 improving to 11.0% for LTM June 2022, compared to 8.7% for FY 2021 • Strong pipeline of digital sites under construction and pending development approvals, with view of capex for 2022 of $25-35m and returning to normalised annual Increase RO
Slide 20: 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 • Out Of Home captured 14.1% of the agency media OOH share recovering (SMI 1) 16% growth in H1 per the SMI1, and ended the half at 14.3% 11.6
Slide 21: Outlook
Outlook
Slide 22: Fly & Office providing audience and revenue opportunity
Fly & Office providing audience and revenue opportunity COVID-impacted formats expected to drive growth for oOh! in H2 2022 – 2023, in addition to the structural growth opportunity Total Domestic Passengers1 Locate Revenue Potential 12,000,000 2.5 50.0 No. of Domestic Passengers 2022 oOh! Fly revenu
Slide 23: Resilience of oOh!'s business model to inflationary pressures
Resilience of oOh!’s business model to inflationary pressures • oOh!’s business model provides a buffer against adverse inflation Fixed rent escalators • Hedges in place – mitigating adverse interest rate movements • Circa 75% of fixed rent is not linked to CPI increases • Additionally, interest hed
Slide 24: Outlook
Outlook Q3 continuing Out of Home growth momentum • Out Of Home expected to continue to take share • Total Q3 revenues currently pacing +37% higher than Q3 2021 at this time last year, with all formats (except Rail, due to loss of Sydney Trains) pacing at double digit growth. This is 98% of the paci
Slide 25: Wrap Up
Wrap Up oOh! well positioned for growth • Opportunity for strong growth in Fly oOh! Set for growth and Office formats • Q3 2022 pacing +37% vs Q3 2021 Significantly improved earnings and oOh! focused on delivering growth profitability strategy • 10% revenue uplift with Road, • Growing revenue Retail
Slide 26: Questions
Turn everyday energy use into savings on your shopping 9 | fone” Q Origin Everyday Rewards Plan unmissable
Slide 27: Appendix
Appendix
Slide 28: Advertising category performance - SMI
Advertising category performance - SMI1 1H 2022 SMI category share for Out of Home SMI Agency Spend 1H 2022 Pacing vs 1H 2019 -60% -40% -20% 0% 20% 40% 60% 80% 100% 120% Alcoholic Beverages 7% 6% Retail 5% Automotive Brand 5% 6% Banking Automotive Brand Communications 5% Travel Food/Produce/Dairy 6%
Slide 29: Revenue by quarter 2019-2022
Revenue by quarter 2019-2022 250.0 200.0 Revenue ($M) 150.0 100.0 50.0 - Q1 Q2 Q3 Q4 2019 2020 2021 2022 28
Slide 30: COGS bridge
COGS bridge 180.0 170.0 19.1 163.9 (8.1) 160.0 vs) | 1525 3.1 150.0 &1) $M 140.0 130.0 120.0 Net rent abatements 2021 Revenue impact on var costs Loss of Sydney Trains Other Adjusted COGS 1H 2021 Rebaselined cost Escalators on fixed rent Net rent abatement 2022 COGS 1H 2022 2 coh! unmissable
Slide 31: Opex bridge
$M Opex bridge 76.0 75.0 740 73.0 72.0 71.0 70.0 69.0 68.0 67.0 66.0 65.0 73.5 (2.5) 72.1 13 (1.4) (0.7) 72.0 30 unmissable
Slide 32: Statutory NPAT to Adjusted NPAT reconciliation
Statutory NPAT to Adjusted NPAT reconciliation 1H 2022 1H 2021 Change 1 ($m) ($m) ($m) Statutory NPAT 6.1 (9.3) 15.4 AASB 16 income and expense items: Lease modification income (0.2) (0.2) - Fixed lease obligations (80.0) (79.8) (0.3) Depreciation 74.3 69.9 4.4 Interest 17.1 17.6 (0.5) Tax effect of
Slide 33: 1H 2022 vs 1H 2019
1H 2022 vs 1H 2019 REPORTED P&L 1H 2022 ($m) 1H 2019 ($m) Change ($m) Revenue 276.1 304.9 (28.8) Cost of media sites and production (77.5) (95.9) 18.4 Gross profit 198.6 208.9 (10.3) Gross profit margin (%) 71.9% 68.5% 3.4 ppts Total operating expenditure2 (67.0) (67.1) 0.1 Underlying EBITDA 131.6 1
Slide 34: Adjusted vs Reported Results Reconciliation
Adjusted vs Reported Results Reconciliation Key changes: EBITDA increase of $80.0m ▪ Depreciation and amortisation has 1H 2022 1H 2022 Change 1 offset by a Depreciation and Amortisation increased by circa $74.3m due to the P&L ADJUSTED ($m) REPORTED ($m) ($m) increase of $74.3m and an Interest expen
Slide 35: Audience recovery in Road, Street and Retail vs Q3 '21
Audience recovery in Road, Street and Retail vs Q3 ‘21 34.
Slide 36: Financial information notice
Financial information notice oOh!’s Financial Statements for the half year ended 30 June 2022 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 37: 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, 22
Slide 38: 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