Siriusxm Holdings Inc. · NASDAQ:SIRI
Siriusxm — Shareholder Meeting (May 2015)
25 slides from Siriusxm's shareholder meeting presentation, May 19, 2015
Slide 1: 2015 Annual Stockholder Meeting
2015 Annual Stockholder Meeting
Slide 2: Disclaimer on Forward-Looking Statements
DISCLAIMER ON FORWARD - LOOKING STATEMENTS The guidance contained herein is based upon a number of assumptions and estimates that, while considered reasonable by us when taken as a whole, is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of
Slide 3: Disclaimer on Forward-Looking Statements
DISCLAIMER ON FORWARD - LOOKING STATEMENTS The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward - looking statements : • we face substantial competition and that competition is likely to incre
Slide 4: SiriusXM at a Glance
S IRIUS XM AT A GLANCE • A udio entertainment, traffic, weather, safety , security & convenience services to nearly 28 million subscribers • Over 150 channels of curated, commercial free music, talk, news and sports content • Satellite delivery provides seamless, nationwide coverage • Available over
Slide 5: Unique Value Drivers
• Growing subscriber base and high variable margins drive predictable cash flows • Factory installed in approximately 70% of new cars sold in U.S. • More than $5 billion of NOLs • Substantial capital return program UNIQUE VALUE DRIVERS 5
Slide 6: Compelling Content
COMPELLING CONTENT 6
Slide 7: Outstanding Fundamentals
OUTSTANDING FUNDAMENTALS 2014 2013 % change Subscribers 27.3mm 25.6mm +7% Revenue $4,181 $3,799 +10% Adj. EBITDA $1,468 $1,166 +26% Margin 35.1% 30.7% +440bps FCF $1,156 $927 +25% FCF/ Diluted Share $0.197 $0.145 +36% KEY METRICS ($millions, except per share amounts); Source: Company Filings 7
Slide 8: Among Largest in Subscription Media
AMONG LARGEST IN SUBSCRIPTION MEDIA 2010 2011 2012 2013 2014 2015E 20.2 21.9 23.9 25.6 27.3 ~28.7 8 In Millions; Source: Company filings; 2015E based on company guidance
Slide 9: Multi-Year Revenue Growth
MULTI - YEAR REVENUE GROWTH ($ billions) 2010 2011 2012 2013 2014 2015E $2.8 $3.0 $3.4 $3.8 $4.2 ~$4.47 9 Source: Company filings; 2015E based on company guidance
Slide 10: Strong Adj. EBITDA Growth
STRONG ADJ. EBITDA GROWTH ($ millions) 2010 2011 2012 2013 2014 2015E $626 $731 $920 $1,166 $1,468 ~$1,600 10 Source: Company filings; 2015E based on company guidance
Slide 11: Among Best Margins in Media
AMONG BEST MARGINS IN MEDIA 2014 EBITDA Margins Reflects SiriusXM’s 2014 Adjusted EBITDA; Source for others: Thomson Reuters 6% 8% 20% 24% 27% 33% 35% 11
Slide 12: Significant FCF Growth
SIGNIFICANT FCF GROWTH ($ millions) 2010 2011 2012 2013 2014 2015E $210 $416 $709 $927 $1,156 ~$1,250 12 Source: Company filings; 2015E based on company guidance
Slide 13: Enabled Vehicles Growing
ENABLED VEHICLES GROWING (millions) Source: Company estimates based on external industry estimates of 2015 - 19 automotive sales 13 0 20 40 60 80 100 120 25 32 40 49 60 70
Slide 14: Grow Subsequent-Owner Additions
GROW SUBSEQUENT - OWNER ADDITIONS • The used car market is significantly larger than the new car market (nearly 3x) • Our used car penetration rate catches up with new car penetration (~70%) over time • Nearly 30% of self - pay additions now sourced from the subsequent owner market • Over 16,000 dea
Slide 15: The Connected Car Is Here
• Broad implementation in new vehicles will take many years • OEMs pursuing both tethered and embedded connectivity • SiriusXM has a clear strategy to maintain a dominant position in the connected car THE CONNECTED CAR IS HERE 15
Slide 16: Connected Car Opportunities
• SiriusXM is a leading provider of connected vehicle services • Safety, security, & convenience features • Rapid adoption through existing OEM relationships expected to drive penetration and organic growth • Potential for new OEM relationships & global services CONNECTED CAR OPPORTUNITIES 16
Slide 17: What's Next? SXM17
• Leveraging satellite and mobile internet to create an unmatched in - vehicle experience • Enhanced consumer - facing features will provide on - demand content and customized music • Usage data will enable improved personalization, customer service, and marketing • The reason we are paid: winning v
Slide 18: New Mobile App
New Mobile App 18 • P ersonalized user experience • Better performance • I n - app social features • New search functions to discover more content
Slide 19: Best-in-Class Business Model
• Long - term growth prospects • Enabled vehicles 73m estimated 140m by 2022 • Strong business model • Unbeatable content + ease of use • Steady fixed costs • High variable margins • Low capex and taxes • Strong free cash flow BEST - IN - CLASS BUSINESS MODEL 19
Slide 20: Capital Return Program
CAPITAL RETURN PROGRAM • Supported by strong free cash flow generation • $ 6 billion common stock repurchase authorization • Since inception: • 1.4 billion shares repurchased for $ 5 billion through April 24, 2015 20
Slide 21: Appendix: Reconciliations
(((Siriusxm))) Appendix: Reconciliations
Slide 22: Adj. EBITDA Reconciliation for Sirius XM
ADJ. EBITDA RECONCILIATION FOR S IRIUS XM Unaudited (in thousands) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 FY2010 FY 2011 FY 2012 FY 2013 FY 2014 As Reported Total Revenue $997,711 1,035,345 1,057,087 1,090,952 1,080,990 2,816,992 3,014,524 3,402,040 3,799,095 4,181,095 Purchase Price Accounting Adj
Slide 23: FCF Reconciliation for Sirius XM
Unaudited For the Years Ended December 31, (in thousands) 2014 2013 2012 2011 2010 Cash Flow information Net cash provided by operating activities $1,253,244 $1,102,832 $806,765 $543,630 $512,895 Net cash used in investing activities $(96,324) $(700,688) $(97,319) $(127,888) $(302,414) Net cash used
Slide 24: Reconciliation for Sirius XM
Unaudited For the Three Months Ended March 31, (in thousands, except per share amounts) 2015 2014 Cash Flow information Net cash provided by operating activities $310,029 $251,390 Net cash used in investing activities $(33,797) $(27,457) Net cash used in (provided by) financing activities $58,087 $(
Slide 25: SiriusXM
(((Siriusxm)))