Urban One, Inc. · NASDAQ:UONE
Urban One — Radio One — Investor Presentation (May 2016)
29 slides from Urban One's investor presentation, May 23, 2016
Slide 1: Radio One – The Urban Media Specialist, May 2016
MAY 2016 RADIO ONE THE URBAN MEDIA SPECIALIST
Slide 2: Safe Harbor Statement and Non GAAP Financial Measures
Safe Harbor Statement and Non GAAP Financial Measures SAFE HARBOR STATEMENT Thi contains certain for regarding Radio One, Inc.'s (the "Company") business strategy and the related impact, the Company's capital plan and the continuation of current trends, future events, and the future ps of the Ci The
Slide 3: Today's presenters
Today’s presenters Alfred C. Liggins, It Chief Executive Officer, President and )) Treasurer Peter Thompson Chief Financial Officer, Executive Vice President * Mr. Liggins has been CEO of Radio One since 1997 and President since 1989 * Mr. Liggins joined Radio One in 1985 as ‘an account manager at W
Slide 4: The evolution of Radio One
The evolution of Radio One See A eseee vei sand viet ae, gree ss rele = Launches ere itn oy ones sr wostrgon Derm Serer ae saa Gre a twe7 tor 008 nom an os mon mos sass, II Kc — Snes (2a a oom Boards Media for Speen Sera Stan Benen
Slide 5: The only integrated media company focused on African-American culture
The only integrated media company focused on African-American culture #1 local radio. #2 cable network #1 syndicated radio —_—‘#1 digital portfolio. in target demographic _ in target icin target demographic _ in target demographi 15m 58m. 22m 13m weekly households weekly monthly unique 16 large urba
Slide 6: Key investment highlights
Key investment highlights Leading rai, TV and internet brands targeting Acan-Amercans Panned company name change to UtbanOne Metka and Entertainment to reflect broader business model Nonradio businesses ae approaching 50% of total revenue and Adjusted EBITOA, Meaningful cross-sellings a flly integra
Slide 7: Large and growing US African-American population
Lange US African-American Projected US African-American population base in 2014 population growth 2014-2019 ~42.1 million +2.5 million 5.9% 13.2% of US population 14.3% of US population Aticar-Amerien ‘Altean-Amerean consumer Projected increase In Aican-Amerian ‘spending in 2014 consumer spending 20
Slide 8: Advertisers have fewer choices for targeting African-Americans
Advertisers have fewer choices for targ than those seeking to market to Hispanics The number of cable networks for Hispanics is 5x the number of African-Americans networks G&G @ sees 8. tr5s wone Md clo SE ayy Cm é E®D GDN FE Oscovers oe : = ok ett THE AFRICA © sh eomso vem SS @ # of African-America
Slide 9: Radio is the leading reach platform in the U.S.
Radio is the leading reach platform in the U. Radio Reaches over 93% of adult consumers on a weekly basis = Over 265 million people listen to radio each week * 95% of adults 35-49 listen to radio each week and 75% of them work fulltime Over 91% of African-Americans, or 31 million individuals, are re
Slide 10: Radio One overview
Radio One overview RADIO ‘The largest radio broadcaster primarily targeting the African-American community ONI rune _ vinna | Kea — pai \ XS wocane 56 radio stations owned / operated in / Ns 16 ofthe top 33 urban markets | Rado One programming is avalable on , Z waoKN SrA ‘over 200 non- Radio One st
Slide 11: Leading positions in key radio markets
Leading positions in key radio markets Radio One Mian 5 Staion erin 0 rank” Total) Americas
Slide 12: TV One overview
TV One overview vone Foatly s + #2 cable network targeting Atican-Americans h sca I = Highest composition of African-American viewers (88% of audience) += ~ Current Nielsen subscribers of $8 milion mim + 2a hour network encompassing rich diversity of black life in America H ; j — TV One posted 5 con
Slide 13: Performance of TV One has been impressive
Performance of TV One has been impressive Subscriber monetization trends ($/subscriber) Revenue composition EBITDA and margin
Slide 14: TV One distribution agreements
e distribution agreements 3/31/16 Subscribers _ subscriber Upside Potential - Folding into current a9 20-40 san ATAT deal TimeWarner 7 aca gr" sa nine verizon’ 46 Sep-20 NCTC / Other 18 seat
Slide 15: Reach Media overview
Reach Media overview MEDIA blAck ‘imericnehcom Leading radio show syndication network of African-American programming & content = Reach syndicated radio shows dominate urban adult contemporary, urban and inspirational programming, The Tom Joyner Morning Show The Get Up with Erica Campbell show ~The
Slide 16: Interactive One overview
Interactive One overview Fast-growing and valuable audience of 13 million monthly unique visitors Coveted hard-to-reach audience Significant growth opportunities Growth in users as target audience continues to expand Highly engaged on platform Growth in annual revenue per user from expansion of vide
Slide 17: There's nothing else like us out there
There’s nothing else like us out there Television Branded Content Influencer Network one solution Digital Intelligence Social live Events
Slide 18: Diversified advertiser base
Diversified advertiser base a i NISSAN Walmart >!< AARP &}
Slide 19: Uniquely, vertically integrated multi-media platform
Uniquely, vertically integrated multi-media platform Radio One is the ONLY minority owned media entity at scale that targets the African-American community, which makes us more credible with the audience and helps advertisers reach minority spend targets
Slide 20: Radio One — The Urban Media Specialist
VE oeE&eEeE Radio One — The Urban Media Specialist 19
Slide 21: MGM National Harbor investment
MGM National Harbor investment Further diversifies Radio One’s platform in the entertainment industry while stil focusing on its core demographic * Following its $5 million investment in April 2015, Radio One will invest an additional $35 milion from cash in 40,2016 Radio One Headquarters Silver Spr
Slide 22: Financial highlights
Slide 23: Recent 1Q 2016 results
Recent 1Q 2016 results Segment Raven EBITOA Commentary cam ~ 053 “ss |= Sequet montymproverentinavertangin 2056 0 sas ar gas | *Soongpatcalrevenves with expectations for continued strength RADIO... soo threughout the remainder of 2 co Hi am + Operating expenses were dow 6 driven by costcting fos ee
Slide 24: Recent financial performance ('13 – '15)
Recent financial performance (’13 —’15) Segment Revenue EBITDA Commentary oe * Radio and Reach now under single leadership , 215 same tera * Ongoing cost saving efforts * Ratings improvements in key matkets + Sales turnaround in Washington D.C. and Houston eters ta * Aft evenue'13A~15A; 153% * Contr
Slide 25: Summary free cash flow profile
Summary free cash flow profile Pro forma u™ (Sin ritons) 2015 3/3116 Adjusted EBITDA $125.5 $129.1 () Minority interest and other 33) (38) Attributable EBITDA $122.1 $125.3 (Cash Interest 76.0 763 () Capital expenditures 78 59 () Cash Taxes 03 Od Free cash flow $38.3 $42.8
Slide 26: Current Radio One capitalization
Current Radio One capitalization Proforma Gam, _ Ano N16 Rati shoo Rate Matty Act /31/6 leverage Price YW Wooaye Sa otal secured ast sor Bae “etal det Sou 8 Nate feo Te ur ag e08 $0 Total cash and debt balances are pro forma for a repurchase of “$20 million of 9.250% Senior Subordinated Notes during
Slide 27: Trading and valuation overview of peers
Trading and valuation overview of peers Radio comparioe cabin compan SoH an ANG. BBE 0 ror Share price (8/17/16) Equity value (4) Debt, preferred and minority interest (2.Cash Enter 30 value (8/17/16) Net debt /LTM EBITOA Enterprise value / ‘20168 EBITDA sis 0a sa $243 $65.02 saris (s16) $7379 so7.a
Slide 28: Radio One's businesses are significantly undervalued
Radio One’s businesses are significantly undervalued burdens peta ame P2016 | __lustative multiples istrative valuation Segment EBMDA | ~ Current Upside Current Upside VOne a5 20 ox Rado One / Reach Media / Inter 6 80 83 Total $138 Implied 2016E EV / EBITDA Stock price vs Curent stock price (% diffe
Slide 29: Reconciliation of Non GAAP measure to GAAP measure
Reconciliation of Non GAAP measure to GAAP measure The reconciliation of net loss to adjusted EBITDA is as follows: For the Years Ended December 31, 2015 2014 2013 (In thousands) Adjusted EBITDA reconciliation: Consolidated net loss applicable to common stockholders, as reported $ (74,022 ) $ (62,67