Slide 1: CY2017 Results Presentation
CY2017 RESULTS PRESENTATION 19 FEBRUARY 2018
Slide 2: Highlights
HIGHLIGHTS
Slide 3: Revenue growing faster than market with margin expansion
REVENUE GROWING FASTER THAN MARKET WITH MARGIN EXPANSION REVENUE UNDERLYING1 13.1% 13.1% NPATA2 22.5% 22.5% Revenue NPAT2 13.1% 35.5% $380.3m $33.1m Gross Margin Underlying net cash flow 3 21.1% 172.8% $175.5m $31.1m Underlying1 EBITDA Statutory EPS2 22.5% 26.4% $90.1m 20.2 cents Dividend Underlying
Slide 4: Key operational highlights
KEY OPERATIONAL HIGHLIGHTS 1. Digital revenue growth 1. Digital revenue – delivering 60% of total revenue 2. Balanced mature lease profile 2. Lease profiles extended in CY2017 – 65% of revenue base expiring after 2020 3. Data delivering new revenue 3. Launched proprietary data led campaigns – new OO
Slide 5: Financial Performance
FINANCIAL PERFORMANCE
Slide 6: 13.1% revenue growth driven by portfolio diversification
13.1% REVENUE GROWTH DRIVEN BY PORTFOLIO DIVERSIFICATION 4.8% 2.5% 8.9% CY2017 ($m) CY2016 ($m) Change Road Retail CY2017 36.1% Road 137.1 124.6 10.0% Fly REVENUE BY 14.5% Locate New Zealand PRODUCT Retail 126.3 109.2 15.7% Other AS % Fly 55.0 56.0 (1.8%) 33.2% • 8.0% organic revenue growth Locate b
Slide 7: Leveraging scale to drive profit margin growth
LEVERAGING SCALE TO DRIVE PROFIT MARGIN GROWTH CY2017 ($m) CY20161 ($m) Change2 Revenue 380.3 336.1 13.1% • Strong revenue growth Cost of media sites and production (204.7) (191.2) 7.1% • Gross profit driven by strong performances in Road and Retail and portfolio mix change Gross profit 175.5 144.9
Slide 8: Strong financial position provides capacity for growth
STRONG FINANCIAL POSITION PROVIDES CAPACITY FOR GROWTH 31 Dec 2017 ($m) 31 Dec 20161 ($m) Change ($m) • Net debt / Underlying EBITDA ratio of 1.4x, an Cash and cash equivalents 15.9 8.2 7.7 improvement of 0.2x over CY2017 Trade and other receivables 81.3 79.4 1.9 • Net debt of $122.8m, up $8.6m with
Slide 9: Strong improvement in free cash flow
STRONG IMPROVEMENT IN FREE CASH FLOW CY2017($m) CY2016 ($m) Change ($m) • Net cash flow from operating activities of $50.4m include a EBITDA 87.9 70.3 17.6 catch up tax payment of $14.5m in relation to the CY2016 tax year. Removing the catch up tax payment impact, net Net change in working capital a
Slide 10: Business Strategy
BUSINESS STRATEGY
Slide 11: Strategy to deliver sustainable long-term growth
STRATEGY TO DELIVER SUSTAINABLE LONG-TERM GROWTH MOST DIVERSE ACQUISITIONS DIGITAL INVEST IN DATA, PORTFOLIO DELIVER PLATFORMS, CONVERSION CONTENT AND • Broadest audience AUDIENCE AND RUNWAY SYSTEMS reach in Australia CONTENT CONTINUES • Exclusive access to • Balanced classic and Quantium data, and
Slide 12: oOh! has the best data set in out of home
oOh! HAS THE BEST DATA SET IN OUT OF HOME oOh!media’s data set extends audience targeting beyond demographics and claimed data with buyer-graphics and real data 1 REAL BEHAVIOUR – oOh!media CLAIMED BEHAVIOUR – others Transaction based Psychographic based 350+ audience segments 56 audience personas S
Slide 13: Audiences + better data = increased advertiser value
AUDIENCES + BETTER DATA = INCREASED ADVERTISER VALUE oOh!media’s best in class data optimises an advertiser’s audience reach, specifically targeting consumers with a proven propensity to purchase a product category or brand 1.6 Baby in family buyer reach Millions of baby product buyers reached 1.4m
Slide 14: Commercialising data
COMMERCIALISING DATA Q4 of CY2017 saw the completion of oOh!media’s AGILE test using Quantium planning data with 24 client campaigns across the Retail and Road formats Delivered 20 clients 2018 - up average These clients across scaling the audience increased FMCG, Retail, data tool to category their
Slide 15: Case study - Qantas campaign takes off with data, content & OOH
CASE STUDY - QANTAS CAMPAIGN TAKES OFF WITH DATA, CONTENT & OOH $ DATA AND INSIGHTS CONTENT ECOSYSTEM EXPERIENTIAL + ADVERTISER VALUE SOCIAL • Data and insights Content created in • Display on digital EXPERIENTIAL + • • Leverage with 1:1 • 56K app downloads identified to understand house with Junkee
Slide 16: Next phase of digital strategy to drive revenue growth
NEXT PHASE OF DIGITAL STRATEGY TO DRIVE REVENUE GROWTH Advertising revenue / margin • Drivers through digitisation evolving with the oOh!media GROSS NO. DIGITAL strategy PROFIT SIGNS OCCUPANCY MARGIN …from a digital screen strategy • Delivering volume/capacity • “Build it & they will come” approach
Slide 17: Disciplined capital expenditure
DISCIPLINED CAPITAL EXPENDITURE • CY2018 capital expenditure expected to be 45.0 $30.0-40.0m, with the bulk invested into new digital screens 40.0 39.0 33.9 30.0-40.0 • Continued focus of capital spend on contract 35.0 renewals and revenue enhancing initiatives, including investment in technology pl
Slide 18: Outlook
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Slide 19: Outlook
OUTLOOK • The Out Of Home sector is expected to continue to grow over CY2018 • oOh!media will continue to execute its end to end digital strategy, including the continued roll out of its data analytics platform • Acquisitions made in CY2016 are now successfully integrated with revenue synergies expe
Slide 20: Questions
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Slide 21: Appendix
APPENDIX
Slide 22: Financial information notice
FINANCIAL INFORMATION NOTICE oOh!media’s Financial Statements for the year ended 31 December 2017 are 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 re
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, 19 February 2018. The information contained in this presentation is
Slide 24: oohmedia.com.au
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