Arn Media Limited · ASX:A1N
Arn Media — UBS Australasia Conference 2021
17 slides from Arn Media's conference presentation, Nov 15, 2021
Slide 1: Australia’s leading broadcast radio and digital audio network
Australia’s leading broadcast radio and digital audio network UBS Australasia Conference 15 November 2021
Slide 2: Strategic acquisition fast-tracking growth opportunities
Strategic acquisition fast-tracking growth opportunities 8HOT/8MIX (Darwin) • Combined network of 58 AM/FM stations across; 46 DAB+ stations; 33 markets 4EL/4CCA (Cairns) • 8 million broadcast and digital audience network 4RGR/4RGT (Tow nsville) • Digital audio expansion into regional areas 4AA/4MMK
Slide 3: 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 4: Acquisition delivers material scale
Acquisition delivers material scale PF financial profile – LTM June 2021(1,2) Revenue EBITDA 32% 37% $315m $96m(2) 63% 68% 1. HT&E LTM 30 June 2021 calculated as 2HCY20 plus 1HCY21. Grant Broadcasters reports on a 30 June year end. 2. Reflects reporting on a post-AASB 16 basis, in line with HT&E’s r
Slide 5: Highly accretive transaction before revenue synergies
Highly accretive transaction before revenue synergies Highly Disciplined Revenue accretive Valuation Synergies Before synergies and one- Acquisition multiple Ability to leverage client off integration costs reflective of comparable relationships across recent transactions metro and regional networks
Slide 6: Good standalone growth potential in FY22 before revenue synergies
Good standalone growth potential in FY22 before revenue synergies Grant Broadcasters PF revenue profile – June financial year • FY21 revenue ~5% below pre-COVID FY19 pro forma revenue, incorporating 12 months of Hot Tomato (Gold A$ million FY19 FY20 FY21 Coast) ownership. Local 69 65 67 National 27
Slide 7: Regional Radio key role to play as regional markets expand
Regional Radio key role to play as regional markets expand Regional Radio share of Total Radio Further growth revenue has grown since Covid potential for Regional Radio 120% 40% 36% 100% 35% 23% 24% 25% 28% 26% 30% Significant % Regional Radio 80% 25% opportunity to close the gap between 60% 20% pop
Slide 8: TRSN will benefit from ARN alignment
TRSN will benefit from ARN alignment TRSN represents 122 radio stations • TRSN is the national agency sales house for Grant Broadcasters • It also has sales representation agreements with other regional operators • In total, it represents 122 stations • Historical performance has been hampered due t
Slide 9: Uniquely positioned to delivering the future needs of advertisers
Uniquely positioned to delivering the future needs of advertisers Scale; Multi-platform content; Ease of transaction; Digital targeting capabilities CONTENT DISTRIBUTION COMMERCIALISATION 58 AM/FM STATIONS; 5 METRO & 28 REGIONAL 46 DAB+ STATIONS; RADIO MARKETS AUSTRALIA’S BEST TALENT; LIVE AND LOCAL
Slide 10: Appendices
Appendices 10 Galey, Emily Jade & Christo | Gold Coast
Slide 11: 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 12: 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 13: 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 $1.93 per share(1) at completion of the
Slide 14: HT&E Profit and Loss Statement – Pro forma (30 June 2021)
HT&E Profit and Loss Statement – Pro forma (30 June 2021) Grant Broadcasters A$ 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 15: 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 16: HT&E Limited / ABN 95 008 637 643
16 HT&E Limited / ABN 95 008 637 643
Slide 17: 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