Emmis Corporation · OTC:EMMS
Emmis — Deutsche Bank Media Conference 2004
26 slides from Emmis's conference presentation, Jun 8, 2004
Slide 1: Deutsche Bank Media Conference
Deutsche Bank Media Conference Tuesday, June 8, 2004
Slide 2: Forward-looking statements note
greatmedia. greatpeople. greatservice. ® Note: Certain statements in this presentation constitute “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involved known and unknown risks, uncertainties and other factor
Slide 3: Diversified radio and television assets
Diversified radio and television assets Well positioned and high margin radio assets, with top ten positions in New York, Los Angeles and Chicago Continued stable performance by television assets through a difficult advertising market, while many competitors experienced negative revenue growth
Slide 4: Emmis divisions: radio, television, publishing
• Emmis’ Radio Division consists of the leading U.S. Pub markets, including New York 13% City, Los Angeles and Chicago, as well as Indianapolis, St. TV Louis, Austin and Phoenix. 40% Actual Revenue Radio 47% Year End Feb. 2004 • Emmis’ Television Division is comprised of 16 network- affiliated stati
Slide 5: Ore
® _\ | Ore “. ES 1672 70's, 0's... Whatever We Want ALTERMATIVE NEWSRADIO &590-KLBJ EY ‘Buatin's 24-Hour News Station
Slide 6: Radio stations in top markets
6 FM radio stations serving the nation’s top three markets — New York, Los Angeles and Chicago Additional 17 FM and 4 AM radio stations with strong positions in large markets including Phoenix, St. Louis, Austin and Indianapolis In FY 2004, Emmis radio revenues were up 4.5%, two percentage poi
Slide 7: Emmis Domestic Radio Fiscal 2004 Review
Emmis Domestic Radio Fiscal 2004 Review ($ in millions) Operating and Financial Performance Calendar 2003 vs. Peers Net Revenues Station Operating Income(a) • Emmis met or beat market growth in every quarter CCU (1.0)% (1.7)% • Emmis Markets: +2.7% revenue Infinity (1.1)% (4.7)% (fiscal year) CMLS (
Slide 8: Same-Station Radio Revenue Growth since 1998
Same-Station Radio Revenue Growth since 1998 B of A Universe ROIA ETM EMMS CMLS CXR BBGI INF CCU 0% 5% 10% 15% 20%
Slide 9: Diversified format, demo…
Diversified format, demo… Cume by Format Target Demo Soft Adult CHR News/ Hot Adult Sports Rock Country 12-24 25-54 Jazz Hip Hop 18-34 R&B
Slide 10: …and advertiser base
…and advertiser base Category mix for FY ‘04 1. Auto – 13% 2. Media – 8% 3. Beverages – 7% Local 4. Movies/Videos – 6% 81% 5. Restaurants – 6% 6. Dept. Stores/Clothing – 5% National 7. Banks/Mortgage – 5% 19% 8. Cellular/Pager Services – 5% 9. Entertainment – 3% 10. Home Improvement – 3% Total from
Slide 11: Consistent high ratings appealing to advertisers
Fall Winter Spring Summer Fall Winter 2002 2003 2003 2003 2003 2004 Hot97 9.4 10.2 11.0 8.8 10.0 9.5 (18-34) #1 #1 #1 #1 #1 #1 CD101.9 4.0 3.8 3.7 3.8 3.5 3.5 (25-54) #7 #8(tie) #10 (tie) #8 (tie) #8 (tie) #10 (tie) Kiss 98.7 5.0 4.4 4.5 5.2 5.5 5.7 (25-54) #3 #3(tie) #2 (tie) #2 #3 #3 Consistent hi
Slide 12: Emmis has #1 station in #1 U.S. revenue market
Power 106, has been #1 12+ and 18-34 in the ratings for the past 8 books in the #1 U.S. revenue market Emmis has #1 station in Fast growing target demo #1 U.S. revenue market Hot morning personality One of the top billing stations in the U.S.
Slide 13: Station ratings in Chicago, St. Louis, Phoenix, Austin, Indianapolis
Chicago’s Q101, the leading alternative rock station in the market, has legendary brand St . Louis has FM “Rock Block” cluster, based on Winter 2004 KPNT consistently Top 2 in 18-34 KSHE Top 3 in 25-54 for 11 of last 12 books; currently #1 KIHT currently #2 25-54 Cluster ratings best eve
Slide 14: Emmis TV reaches 7.3 million U.S. Households
Emmis TV reaches 7.3 million U.S. Households
Slide 15: Emmis Television Fiscal 2004 Review
Emmis Television Fiscal 2004 Review ($ in millions) Operating and Financial Performance Calendar 2003 vs. Peers • Local revenue for the division was Net Revenues Station Operating Income(a) up 13.7% HTV (4.8)% (10.8)% • Overcame net loss of $13.6 million in political revenue and LIN (4.7)% (14.5)% $
Slide 16: Emmis TV revenue share and expense growth
Emmis TV grew revenue share at 11 of 13 measured stations in calendar ’03 Limited network compensation - $2 m in FY ’04 Held expense growth to 1.7%
Slide 17: Emmis owns and operates 16 TV stations
Emmis owns and operates 16 TV stations in 14 markets Emmis’ TV markets are predominantly middle- sized, with 2 large markets, Orlando & Portland Diversity of network affiliation CBS(5), Fox(5), NBC(3), WB(2), ABC(1) The Television group has attained remarkable revenue growth by applying th
Slide 18: Publishing: minimal capital requirements, high returns
5 million monthly readers Minimal capital requirements High returns on investment Sláger is #1 in Budapest Emmis Mags win National Magazine Award and 32 of 63 national awards at CRMA (5/2003)
Slide 19: Emmis Financials
Emmis Financials
Slide 20: Summary Historical Financials
Summary Historical Financials ($ in millions) Station Operating Income Net Revenues and Adjusted EBITDA (a,b) $700 $250 $223.9 R $219.8 A GR $579.5 $599.6 % CAG 20.1 $600 %C 20.8 $539.8 $200 $185.7 $500 $473.3 $174.2 $150 $400 $125.4 $198.4 $199.8 $325.3 $300 $165.4 $100 $89.5 $156.6 $232.8 $110.0 $
Slide 21: Total Leverage
Total Leverage FY FY 95 95 FY FY 96 96 FY FY 97 97 FY FY 98 98 FY FY 99 99 FY FY 00 00 FY FY 01 01 FY FY 02 02 FY03 FY03 FY04 FY04 10.0x 10.0x 9.3x 9.0x 9.0x 6.7x 2/28/02 8.0x 8.0x 2/29/04 7.0x 7.0x 6.0x 6.0x Average leverage – 5.5x 5.0x 5.0x 4.0x 4.0x 6.5x 3.0x 3.0x 2/28/03 2.0x 2.0x 1.0x 1.0x 0.0x
Slide 22: Debt Restructuring: $1.4 billion debt refinancing
Debt Restructuring: $1.4 billion debt refinancing results in significant benefits to Emmis Significantly lowers cost of capital by approx. 200 bps Improves pro forma free cash flow by approx. $25 mm Allows for rapid near-term deleveraging Extends maturities to 7.5 - 8 years with nominal mand
Slide 23: Interest Expense Savings Summary
Interest Expense Savings Summary Feb. 29, 2004 Pro Forma Feb. 29, 2004 Amount Rate Expense Amount Rate Expense Credit Facility Revolver $ 45.0 Libor + 2.25% $ 1.5 $ 302.1 Libor + 2.25% $ 10.2 Term Loan A 196.0 Libor + 2.25% 6.6 N/A N/A N/A Term Loan B 498.8 Libor + 2.25% 16.8 675.0 Libor + 1.75% 19.
Slide 24: Compelling Valuation
Compelling Valuation Dollars in millions Net Revenues (1) $ 592 Less: Station operating expense (1) 372 Less: Corporate expenses 24 Adjusted EBITDA 196 (2) Less: Interest expense 61 Less: Capital expenditures 30 Less: Minority interest 3 Less: Cash taxes 1 Less: Preferred dividends 9 Free cash flow
Slide 25: Trailing Free Cash Flow Multiples
Trailing Free Cash Flow Multiples Emmis FY2/04 vs. Comps CY03 Emmis 2/04 Emmis 2/04 PF FCF $67 $92 FCF/Share $1.21 $1.67 24.0x 25.2x 23.4x 22.7x 21.5x 20.3x 20.1x 17.6x 18.0x 15.4x 12.8x EMMS EMMS CMLS ROIAK CDL CXR ETM GTN LIN HTV Newspapers 2/04 2/04PF Radio TV Note: Free Cash Flow = Operating Inc
Slide 26: Deutsche Bank Media Conference closing slide
grea t grea media grea tp e . ople tser . Deutsche Bank Media vice Conference .® Tuesday, June 8, 2004