Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — 43rd Annual Global Media & Communications Conference 2015
22 slides from Nexstar Media's conference presentation, Dec 8, 2015
Slide 1: Keeping it Local
Keeping it Local NXST: NASDAQ Tom Carter, Chief Financial Officer May 12, 2015 Perry Sook, Chief Executive Officer Tom Carter, Chief Financial Officer 43rd Annual Global Media & Communications Conference December 8, 2015
Slide 2: Safe Harbor
Safe Harbor In addition to historical facts or statements of current conditions, this presentation contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’
Slide 3: Investment Summary
Investment Summary Rapidly Growing Mid-market Consolidator Creating value from recent highly accretive, strategic broadcast and digital media acquisitions Strong operating leverage and free cash flow focus based on diversified revenue streams and expense management discipline Leveraging Loca
Slide 4: Nexstar Broadcasting Group: Keeping it Local/Driving Diversification
Nexstar Broadcasting Group Keeping it Local/Driving Diversification Diversified Top 20 TV Group with Leading Local Franchises Nexstar’s Pro Forma Operating Base Reaches ~18.1% of U.S. Television Households 115 Television Stations / 36 Multicast channels 62 Markets / 25 States 37 Duopoly Mark
Slide 5: Recent Key Operational Events
Recent Key Operational Events Record Financial Results Nine Months Ended Jun 30 Change (%) last odd-year 2015 2014 2013 9M15 vs. 9M14 9M15 vs. 9M13 non-political (in millions) (in millions) (in millions) cycle Net Revenue $649.6 $438.5 $364.2 +48.1% +78.4% Broadcast Cash Flow $245.4 $175.4 $137.7
Slide 6: Strong Industry Fundamentals
Strong Industry Fundamentals Broadcast Television Continues to be a Dominant Force in Consumers’ Media Lives TV Reaches More People than Any Other Medium TV is the Most Influential Local Media Television 84.5% 93 of the Top 100 Rated Programs Most Influential of All Media are Broadcast Programs (P18
Slide 7: Strong Secular Trends in Television Broadcasting Driving Growth
Strong Secular Trends in Television Broadcasting Driving Growth Near term Drivers: Political and Retransmission Consent Fees Double Digit Growth in Political Ad Spend Strong Retransmission Growth Gross Retransmission Revenues Net Retransmission Revenues ($ in Billions) ($ in Billions) $7.9 $3.3 $7.2
Slide 8: Growth in Political and Issue Advertising
Growth in Political and Issue Advertising Strong Even Year Political and Issue Advertising Growth NXST FY Political Revenue 2016 Key Senate and Gubernatorial Elections Even Year Odd Year 2016 Senate Races 2016 Gubernatorial Races CAGR: 25% 2008-2014 CAGR: 6.1% 2007-2013 Nexstar Market Incumbent Part
Slide 9: Retransmission Growth Cycle
Retransmission Growth Cycle Retransmission revenue is materially diversifying NXST’s total net revenue NXST Retransmission Revenue and Agreement Cycle $300.0 (Twelve Months Ended December 31) 35.0% 33.0% $270.0 Retransmission Revenue 31.5% Retransmission Revenue as a % of Total Net Revenue $240.0 28
Slide 10: Consolidation is Reshaping the Industry Landscape
Consolidation is Reshaping the Industry Landscape Sorted by percent of US TV households reached 2011-33 Major Affiliate Groups 2015 (Pro-Forma) for all announced transactions- 16 Major Affiliate Groups Note: Pro forma for all announced transactions (1) Gannett completed spinoff of publishing busines
Slide 11: NXST M&A Snapshot 2011 - 2015
NXST M&A Snapshot 2011 - 2015 66 Television Stations and Four Digital Businesses Acquired1 in Accretive Transactions for ~$1.3 Billion Closed Transactions Pending Transactions Liberty Media Corporation (2011) Enterprise Technology Group (2014) Pappas Telecasting of Iowa 2 Stations / 2 Markets Cloud-
Slide 12: Monetizing Targeted Localism
Monetizing Targeted Localism Strong Local Platforms Drive Value at Every Level NXST’s Expanding and Diversifying Revenue Mix Monetizing the local opportunity through 2010 Revenue Mix Digital Other, 2014 Revenue Mix Other, Digital five-tiered high margin revenue stream Media, 3.0% Media, 5.2% 4.2%
Slide 13: Local/News Programming
Local/News Programming Local News Weather / Traffic Sports Campaign Coverage Local Lifestyle Programs Local Hometown Sports Community Involvement Special Reporting Award Winning News Mobile / Digital Social Media Engagement NXST’s local news rank among top 2 in Local news operations covering 54
Slide 14: Expanding Geographic Reach
Expanding Geographic Reach Local Community Focus ARKANSAS Pro forma: 115 Television Stations in 62 markets reaching ~18.1% of all U.S. TV HH TEXAS Little Rock-Pine Bluff, AR (56) Harlingen-Weslaco-Brownsville-McAllen, TX (86) KARK (NBC) (O&O) KVEO (NBC/Estrella) (O&O) KARZ (MNTV) (O&O) Waco-Temple-B
Slide 15: Network Affiliation Agreements
Network Affiliation Agreements Long-term record of negotiating mutually beneficial Network Affiliation agreements Affiliation Agreements 100% of all “Big Four” markets are renewed through YE2016 Creating the first NBC affiliate in Lafayette, LA and the MyNetworkTV affiliate in Waco, TX (both eff
Slide 16: Financial Overview
Nexstar BROADCASTING GROUP, INC. % Financial Overview
Slide 17: Growing Two Year FCF Cycle
Growing Two Year FCF Cycle (FY) Significant Free Cash Flow Growth Since IPO NXST Free Cash Flow based on two year cycles 300 $244.7 250 200 ($ in millions) 150 $114.7 100 $80.0 $54.3 50 $41.7 $15.1 0 2003/2004 2005/2006 2007/2008 2009/2010 2011/2012 2013/2014 Organic Growth, fueled by Political and
Slide 18: Historical Financial Summary
Historical Financial Historical Summary Financial (in millions) Summary (in millions) FY Net Revenue FY Core Revenues $700.0 $450.0 Local Revenue National Revenue $631.3 $389.1 $600.0 $400.0 $348.8 $502.3 $350.0 $500.0 $300.0 $266.3 $249.8 $237.7 $400.0 $378.6 $235.9 $247.3 $250.0 $212.5 $313.4 $306
Slide 19: Q3 / Nine Months 2015 Financial Summary
Q3 / Nine Months 2015 Financial Summary (in thousands) 1) Broadcast cash flow margin is broadcast cash flow as a percentage of net revenue. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net revenue. 19
Slide 20: Debt/Leverage Analysis
Debt/Leverage Analysis Nexstar Debt/Leverage Analysis TTM ENDED 3-Mo ENDED (in millions) 12/31/2011 12/31/2012 12/31/2013 12/31/2014 PF12/31/14* 09/30/15 Revolver $ 24.3 $ - $ - $ 5.5 $ 41.0 $ 7.0 TLB 148.1 288.3 545.4 705.1 705.1 686.4 8.875% Sr Sec 2nd Lien Notes 318.4 319.4 - - - - 6.875% Sr Sub
Slide 21: Transformational Acquisitions and Operating Strategies Driving Record FCF
Transformational Acquisitions and Operating Strategies Driving Record FCF Closed and Successfully Integrated Highly Accretive Acquisitions Increased station platform by ~70% since YE’12 Closed ~$650 million in acquisitions since 12/1/14 Continued Double Digit Growth of Non-core Revenue Chann
Slide 22: Keeping it Local
Keeping it Local NXST: NASDAQ Tom Carter, Chief Financial Officer May 12, 2015 Perry Sook, Chief Executive Officer Tom Carter, Chief Financial Officer 43rd Annual Global Media & Communications Conference December 8, 2015
Nexstar Media Group — 43rd Annual Global Media & Communications Conference 2015 on 6ix