Ooh Media Ltd · ASX:OML
Ooh Media — H1 2021 Earnings Presentation
33 slides from Ooh Media's earnings presentation, Aug 23, 2021
Slide 1: Half Year Results Presentation ASX Release
oOh!media Limited ABN 69 602 195 380 23 August 2021 ASX Release HALF YEAR RESULTS PRESENTATION oOh!media Limited (ASX:OML) (oOh!) in accordance with ASX Listing Rules attaches the 2021 Half Year Results presentation. This announcement has been authorised for release to the ASX by the Chief Executive
Slide 2: H1 2021 results presentation
H1 2021 results presentation 23 August 2021
Slide 3: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Sheila Lines (CFO) • H1 2021 Highlights • Revenue and audience performance • Financial results • The opportunity for growth • Outlook • Questions 2
Slide 4: H1 2021 Highlights
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Slide 5: H1 2021 Highlights
H1 2021 Highlights • Revenue recovery • H1 revenues up 23% and Q2 more than doubling vs Q2 2020 • Road and New Zealand performing above H1 2019 (pre COVID-19 levels) • Well positioned for rebound • Fundamental appeal of Out Of Home as an effective advertising medium remains • Advertisers less cautio
Slide 6: H1 2021 Key Financials
H1 2021 Key Financials Significantly improved revenue and EBITDA Pre AASB161 outcomes and changes vs the pcp Revenue NPAT 23% 83% $251.6m ($3.9m loss) Gross Profit EPS 55% 89% $106.9m (0.7 cents loss) Interim Dividend COGS and Opex 12% No dividend n/a $218.3m declared Underlying2 Gearing EBITDA 209%
Slide 7: Revenue and audience performance
Revenue and audience performance
Slide 8: Revenues in key formats recovered strongly
Revenues in key formats recovered strongly Q2 revenues more than doubled on the pcp • +23% H1 revenue growth led by H1 H1 2020 H1 Q1 % Q2 % H1% vs broadcast formats, with both Road 3% 3% Formats1 2021 Change % 3% ($m) vs pcp vs pcp H1 2019 and NZ1 outperforming H1 2019 ($m) vs pcp 37% Commute 91.9 7
Slide 9: Key formats in line vs 2019
Key formats in line vs 2019 oOh! revenue pacing by audience impacted 15% format (monthly vs FY19) Audience Road/Retail/Street/NZ FY19 weighting % 120% impacted format 10% Fly FY19 weighting % 100% FY19 revenue contributions Office/Rail FY19 weighting % 80% 75% 60% 40% 20% ▪ oOh!’s key formats accoun
Slide 10: Road – strong recovery post lockdowns in key markets
Road – strong recovery post lockdowns in key markets Revenue following audience trends1 and demonstrating the appeal of Billboards as a demanded advertising medium Victoria metro road weekly audience vs pre COVID NSW metro road weekly audience vs pre COVID LTM LTM moving average moving average 150%
Slide 11: Sustained audience in New Zealand
Sustained audience in New Zealand – supporting strong performance ▪ NZ – very limited lockdowns / domestic restrictions in H1 2021, Australia vs NZ media revenue pacing1 vs 2019 and audiences circa 100% throughout the period 120% ▪ Australia held fairly consistent audience levels in road and retail
Slide 12: Financial Results
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Slide 13: Revenue recovery delivers operating leverage
Revenue recovery delivers operating leverage • Underlying EBITDA growth achieved with revenue recovery and cost discipline P&L pre AASB161 H1 2021 ($m) H1 2020 ($m) Change ($m) • Gross margin of 42.5%, up 8.8 percentage points due to revenue increase, strong Road performance (mix) and rent abatement
Slide 14: Rent abatements – H1 2021
Rent abatements – H1 2021 Abatements – quantum and timing will be influenced by conditions 1 $19m2 in net rent abatements • Almost 100% of the H121 net rent received by format abatements were in the highly impacted Airport and Rail environments • H2 abatements will depend on the audience and/or reve
Slide 15: Improved earnings converting into cash flows
Improved earnings converting into cash flows • First half free cash inflows of $19.7m, with operating cash flows 83% of EBITDA Cash flows1 H1 2021 ($m) H1 2020 ($m) Change ($m) • Stronger EBITDA compared to the comparative period benefits cash from operations EBITDA (pre AASB16) 33.3 7.9 25.4 Net ch
Slide 16: Strong balance sheet with gearing at 1.1x
Strong balance sheet with gearing at 1.1x Balance sheet1 30 Jun 2021 ($m) 31 Dec 2020 ($m) Change ($m) • Strong cash generation from improved earnings and lower capex versus long term levels have Cash and cash equivalents 49.3 80.0 (30.8) further reduced net debt Trade and other receivables 84.9 85.
Slide 17: The opportunity for growth
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Slide 18: Out of Home - positioned for return to structural growth
Out of Home - positioned for return to structural growth PWC Media Outlook – July 2021 Fundamental appeal of Out Of Home as an effective advertising medium remains: 2020 2025 1. Robust mass reach medium against a Out Of Home, Out of Home fragmenting media market 5.0% 7.3% 2. Industry standardisation
Slide 19: Strategic focus remains within High Growth OOH sector
Strategic focus remains within High Growth OOH sector Optimise network Increase our focus on Accelerate digital Disciplined approach assets for audience audience selling as transformation of planning to opex and profit the future of OOH and buying process • Focus on further building • Adopt digital
Slide 20: Our Audience Strategy is already seeing positive results for clients
Our Audience Strategy is already seeing positive results for clients Since launching oOh!’s “Better Ways To Buy Audience” in June, we have already seen a positive uptake of this approach in market and continue to see positive results for our customers. Highlight: Ingham’s Campaign Results Using our
Slide 21: Outlook
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Slide 22: Outlook
Outlook H2 2021 • Q3 revenue currently pacing +38% higher than Q3 2020 at this time last year, and 74% of Q3 2019 at this time in 2019. The final Q3 outcome will be dependant on audience restrictions • Overall media market stronger than in Q2 2020 which had significant audience declines and strong r
Slide 23: Questions
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Slide 24: Appendix
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Slide 25: Advertising category performance - SMI
Advertising category performance - SMI1 2021 H1 SMI category share for Out Of Home SMI Agency Media by category pacing vs H1 2019: All Media vs Out Of Home Food/Produce/Dairy 8% Retail Retail 7% Alcoholic Beverages Automotive Brand 6% Government Insurance 43% Automotive Brand 6% Restaurants Food/Pro
Slide 26: oOh! 2019 Australian media revenues – geographic splits
oOh! 2019 Australian media revenues – geographic splits 2019 oOh! Australian Media revenue by state • NSW and VIC account for nearly 70% of the total Out Of Home revenue market – measured by revenue displayed in the state • 2019 used as the base as 2020 was Covid impacted – to the benefit 7% of QLD
Slide 27: AASB16 Reconciliation
AASB16 Reconciliation H1 2021 H1 2021 Change 1 Key changes: EBITDA increase of $79.8m adoption of AASB16 Pre AASB16 ($m) Post AASB16 ($m) ($m) offset by a Depreciation and Amortisation increase of $69.9m and an Interest expense ▪ Depreciation and amortization costs are Revenue 251.6 251.6 - increase
Slide 28: 2020 to 2021 EBITDA Bridge
2020 to 2021 EBITDA Bridge ▪ Growth in EBITDA driven by revenue recovery in key formats such as Road, Retail and Street Furniture ▪ Rent abatements in formats where audiences have not meaningfully returned such as Fly and Rail, increased vs H1 2020 added $2.7m to the 1H result vs the pcp ▪ Temporary
Slide 29: NPAT to NPATA reconciliation
NPAT to NPATA reconciliation H1 2021 H1 2020 Change 1 Pre AASB16 Pre AASB16 ($m) ($m) ($m) NPAT (3.9) (23.0) 19.1 Add: Non-operating items - 2.9 (2.9) Less: tax impact of non- - (0.3) 0.3 operating items Underlying NPAT (3.9) (20.4) 16.5 Add: Amortisation relating to 9.0 5.1 4.0 acquired intangibles
Slide 30: H1 2021 vs H1 2019
H1 2021 vs H1 2019 P&L pre AASB161 H1 2021 ($m) H1 2019 ($m) Change ($m) Revenue 251.6 304.9 (53.3) Cost of media sites and production (144.7) (178.2) 33.5 Gross profit 106.9 126.6 (19.8) Gross profit margin (%) 42.5% 41.5% 0.9 ppts Total operating expenditure (73.5) (70.6) (2.9) Underlying EBITDA 3
Slide 31: Financial information notice
Financial information notice oOh!’s Financial Statements for the half year ended 30 June 2021 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 32: Important notice and disclaimer
Important notice and disclaimer This document is a presentation of general background information about the activities of oOh!media Forward looking statements are provided as a general guide only, and should not be relied on as an Limited (oOh!media or oOh!) current at the date of the presentation,
Slide 33: 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