Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Investor Day (October 2018)
94 slides from Southern Cross Media's investor day presentation, Oct 25, 2018
Slide 1: Southern Cross Austereo Investor Day
SOUTHERN CROSS AUSTEREO Investor Day 25 October 2018 1
Slide 2: Disclaimer
DISCLAIMER Summary information The material in this presentation has been prepared by Southern Cross Media Group Limited ABN 91 116 024 536 (“Southern Cross Austereo”) and contains summary information about Southern Cross Austereo’s activities current as at 25 October 2018. The information in this p
Slide 3: SCA Leadership Team
SCA LEADERSHIP TEAM Grant Blackley Nick McKechnie Guy Dobson Brian Gallagher John Kelly Stephen Haddad CEO and Managing Chief Financial Officer Chief Creative Chief Sales Chief Operating Chief Technology Director Officer Officer Officer Officer Jun 2015 Grant Blackley appointed CEO June 2018 Sep 201
Slide 4: Agenda
AGENDA 1. Strategic Overview Grant Blackley, CEO 2. Capital Management Nick McKechnie, CFO 3. SCA Operations John Kelly, COO Break 4. Content and Brands Guy Dobson, Chief Creative Officer 5. Monetisation and Sales Brian Gallagher, Chief Sales Officer 6. Technology Stephen Haddad, CTO 7. Conclusion G
Slide 5: SCA's Winning Aspiration
SCA’s ‘WINNING ASPIRATION’ Winning Aspiration “SCA is an entertainment company that seeks to deliver market-leading value-creating brands. Leveraging off our core competencies we provide content and insightful services that bind communities together to facilitate rewarding interactions. As a result
Slide 6: Strategic Vision - Core Competencies
STRATEGIC VISION - CORE COMPETENCIES SCA has developed a corporate strategy that leverages its core competencies: • National reach of over 95% of Australians – strong brand amplification • Localism – SCA is focussed on providing What localised content and in connecting makes communities SCA? • Brand
Slide 7: Strategic Vision - Core Attributes
STRATEGIC VISION - CORE ATTRIBUTES SCA core competencies are further supported and activated by: • Our People – circa 2,000 skilled people across 60 offices throughout Australia • Sales co-ordination – the largest sales What team in Australian media – circa 700 makes sales experts with multi-asset S
Slide 8: SCA Strategy – Four Key Pillars
SCA STRATEGY – FOUR KEY PILLARS CONTENT DISTRIBUTION MONETISATION NEW GROWTH Ensure an improved Monetize all available Optimise key audio Explore opportunities audio experience for audience efficiently assets in adjacent sectors our audience with clients 8
Slide 9: SCA Core Asset Base
SCA CORE ASSET BASE METRO REGIONAL NATIONAL 18 metro radio stations TV affiliation in 68 regional 94 websites + apps, - 10 FM stations and 8 regional Australia – radio stations digital agency digital radio stations 105 signals 9
Slide 10: Southern Cross Austereo
SOUTHERN CROSS AUSTEREO eres Sa TS Se abrolotely engaging a 7 ae I w wo were OUTH 90 cee me 00 SPE ces t AUSTRALIA - ‘ NORTHERN NSW ] aap RORTMACQUARE - HoT 10038 DO 2053 Tepe 076 1057) Eee emeemen NRE NETWORK] 00 Filmes 7 ue a 90 SARE cuss fe a Fa ETE ures tee oe WHE ete baad 00 FRE Ran te ey 90 EN
Slide 11: Significant Achievements in Last 3 Years
SIGNIFICANT ACHIEVEMENTS IN LAST 3 YEARS Strategic focus: • Balance sheet repair – cash conservation and non-core asset divestment • Asset realignment – TV alignment with Nine and Seven • Audio assets – national branding and digital extensions Launch of digital Disposal of radio commercial northern
Slide 12: Radio Is a Growth Platform
RADIO IS A GROWTH PLATFORM Radio audience growth supported by population increases, portability of radio (home, car, work, mobile) and underpinned by targeted investment in local content Cumulative Audiences Metro Market Revenue (All People 10+) $780m $781m $750m 10.2m $715m 9.8m 9.9m 10.1m $694m 9.
Slide 13: Embracing New Audio Platforms
EMBRACING NEW AUDIO PLATFORMS Whilst radio has remained a resilient medium to date, digital distribution enables consumers to receive audio on-demand and personalised content and provides new growth opportunities US podcasting advertising AUS podcast market forecast to Audio streaming audience share
Slide 14: FTA Television Market – Strategy Refined to Maximise Opportunity
FTA TELEVISION MARKET – STRATEGY REFINED TO MAXIMISE OPPORTUNITY SCA has focussed on maximising its competitive advantages in television Australian FTA TV Market Dual ownership of regional radio and TV assets provides clear point of difference 4000 $3,877m $3,835m $3,789m $3,819m $3,743m in market
Slide 15: Capital Management
CAPITAL MANAGEMENT NICK McKECHNIE CHIEF FINANCIAL OFFICER Fo o t b a l l Federation Aus tr alia
Slide 16: Capital Structure Successfully Right-Sized
CAPITAL STRUCTURE SUCCESSFULLY RIGHT-SIZED Market Capitalisation ($’m) Net Debt ($’m) • Capital structure of 1,200 700 business strengthened 1,000 1,007 600 588 through focussed de- levering of debt and 500 800 755 operational improvement 400 600 304 • Debt reduction has 300 resulted in leverage fal
Slide 17: Balance Sheet De-levering
BALANCE SHEET DE-LEVERING Balance sheet de-levering 700 600 • $284m or 48% reduction in net debt (100) over last 4 years 500 (93) 400 • Debt reduction program has 8 Net 300 (99) positioned SCA with much improved 588 Debt ($’M) balance sheet and has created 200 304 flexibility to pursue corporate str
Slide 18: Capital Management Objectives Aligned with Generating Shareholder Returns
CAPITAL MANAGEMENT OBJECTIVES ALIGNED WITH GENERATING SHAREHOLDER RETURNS • Manage leverage within Minimise WACC target range • Management focus on Capital allocation targeting ROIC growth achieving long term ROIC growth • Disciplined allocation of Grow EPS consistently capital in growing existing b
Slide 19: Optimal Capital Structure
OPTIMAL CAPITAL STRUCTURE Target minimised WACC 1.5x 2.0x Current leverage • SCA seeking to maintain leverage Target range equivalent to low investment grade metrics • Leverage ratio range of 1.5x to 2.0x considered appropriate in current environment • Targeting mix of debt and equity that minimises
Slide 20: Targeting Balance of ROIC & Long-Term EPS Growth
TARGETING BALANCE OF ROIC & LONG-TERM EPS GROWTH Management focus on increasing both ROIC and EPS provides balanced measures to ensure disciplined allocation of capital Optimise Key Audio Assets Ensure an improved Monetise all available Explore opportunities audio experience for our audiences effici
Slide 21: Future Developments in Capital Expenditure
FUTURE DEVELOPMENTS IN CAPITAL EXPENDITURE Capex Priorities • Increasing spend on IT platforms, aided by convergence of IT and broadcast engineering • Increasing use of external consumption models and software as a service • Lower recurring property expenditure from FY20 as major property upgrades c
Slide 22: Strong Consistent Cash Generation
STRONG CONSISTENT CASH GENERATION Cash Conversion - (Operating Cash less Capex) / EBITDA Cash flow available for distribution pre-non- 90.0% 79.5% recurring items 77.8% 80 80.0% 69.7% 70.0% 70 60.0% 60 50.0% 50 $'M 40.0% 40 30.0% 30 20.0% 20 10.0% 10 0.0% - FY16 FY17 FY18 FY15 FY16 FY17 FY18 • SCA a
Slide 23: Dividend Policy and Returns to Shareholders
DIVIDEND POLICY AND RETURNS TO SHAREHOLDERS Dividend History, c/share 4.00 4.00 3.50 3.00 3.25 3.75 3.75 3.00 FY15 FY16 FY17 FY18 Interim Final • 29% increase in DPS since FY15 • Dividend policy 65% to 85% of NPAT • $145m franking balance – payment of fully franked dividends remains efficient way to
Slide 24: Hierarchy of Capital
HIERARCHY OF CAPITAL • Free cashflow and optimal Determine available cash/capital capital structure as key measures • Reliable and sustainable Maintain ordinary dividend within payout policy dividends in line with communicated policy • Disciplined and measured Reserve funds for investment/growth inv
Slide 25: Operations
OPERATIONS JOHN KELLY CHIEF OPERATING OFFICER Fo o t b a l l Federation Aus tr alia
Slide 26: SCA Approach to Management Operating Structure
SCA APPROACH TO MANAGEMENT OPERATING STRUCTURE “More Autonomy with more Responsibility and with more Accountability” • SCA prides itself on ensuring a collaborative and unified management culture • We recently changed from a “Metro/Regional” Operating Structure to a “One SCA” Operating Structure whe
Slide 27: SCA Operating Structure Prioritises Markets Based on Revenue Impact
SCA OPERATING STRUCTURE PRIORITISES MARKETS BASED ON REVENUE IMPACT & POTENTIAL EARNINGS OUTCOMES SCA has tiered its markets based on revenue and audience criteria in order to best allocate resource to optimise earnings outcomes SCA Corporate Strategy Sales Content Finance Operations Technology Tier
Slide 28: Major Project Initiatives
MAJOR PROJECT INITIATIVES A Major Project Group (MPG) is designed to deliver a strategic or operational activity that will make a material difference to SCA Key elements of a MPG include - Project Sponsor and Leader - Cross functional and diverse group executives - Defined project plan with a clear
Slide 29: Workforce Planning MPG: The Definition
WORKFORCE PLANNING MPG : THE DEFINITION Strategic Workforce Planning will enable SCA to ensure it has the Right Number of employees with the Right Skills in the Right Places at the Right Time working in the Right Way In order to effectively execute our Corporate Strategy 29
Slide 30: Workforce Planning in Summary – Six Areas of Focus
WORKFORCE PLANNING IN SUMMARY – SIX AREAS OF FOCUS Content Technology & Enabling 3 4 5 Monetization 6 creation broadcast innovation Success through diversity 1 identity & cognitive • Identify and • Optimised map an ideal • Optimise the • Develop the production future state for level of capabilitie
Slide 31: Our People
OUR PEOPLE At SCA we pride ourselves in attracting and retaining the most talented people… Our skills and capabilities are extensive and diverse and Business Support broadly grouped under core categories; Tech Content • Content Creation and Programming Front of House - 80% • Sales and Customer Suppo
Slide 32: Developing Culture at SCA
DEVELOPING CULTURE AT SCA Building leadership capability, and recognising this is the biggest influence on culture, is a key focus at SCA • Human Synergistics methodology used to measure organisation and management capability • Organisational and leadership culture assessed bi-annually • Objective i
Slide 33: Charity Partnerships – SCA Embrace
CHARITY PARTNERSHIPS SCA has focussed its charity program into providing significant support to a select number of charities over each two year period. This concentrated support, with over $20m in airtime provided each year, enables the charities to experience meaningful growth. Increase of 17,000 I
Slide 34: Podcast One – Leading the Way
PODCAST ONE – LEADING THE WAY Podcast One utilises digital platforms and builds off SCA core competencies in a capital light manner • Premium original content • Cross promotion across SCA • Localism -> 95% downloads radio assets are of Australian stories • #1 podcasting brand BRAND 1 AMPLIFICATION B
Slide 35: Podcast One – The Story So Far
PODCAST ONE – THE STORY SO FAR • The pre-eminent commercial podcast company in Australia - achieving 62 million downloads since launch Aug 2017 • Premium original content driving increasing consumer engagement and monetisation pathway • Download volumes up to yearly high of ~2.1m downloads per week
Slide 36: Driving Podcasting Revenue from Three Distinct Areas
IN ORDER TO MAXIMISE REVENUE SCA WILL NOW DRIVE PODCASTING REVENUE FROM THREE DISTINCT AREAS The podcasting market can be broken down into 4 distinct areas of revenue: Opportunity Description Strategic alignment Suitability High quality on demand content Premium Original created as a podcast first (
Slide 37: Content & Brands
CONTENT & BRANDS GUY DOBSON CHIEF CREATIVE OFFICER
Slide 38: It's All About the Talent
IT’S ALL ABOUT THE TALENT HUGHESY & KATE CARRIE & TOMMY #1 in timeslot for women 18- #1 in timeslot for people 25-54 39 KENNEDY RADIO CHASER Biggest audience for MOLLOY Men 25-54 in timeslot Biggest audience for men 25-54 out of all FM drive shows Source: GFK, Metro Markets 38
Slide 39: Sydney Growth Strategy
SYDNEY GROWTH STRATEGY DRIVE #1 in timeslot for women 18-39 MUSIC More music, more variety – that’s the 2DayFM difference BREAKFAST Working on the next big thing Source: GFK 39
Slide 40: The Biggest Rebrand in Australian Radio History
THE BIGGEST REBRAND IN AUSTRALIAN RADIO HISTORY
Slide 41: The Triple M Network – Prior to Rebrand
THE TRIPLE M NETWORK – PRIOR TO REBRAND 41
Slide 42: The Triple M Network 2018 Rebranded
THE TRIPLE M NETWORK 2018 REBRANDED 42
Slide 43: Hit Network – Prior to Rebrand
HIT NETWORK – PRIOR TO REBRAND 43
Slide 44: Hit Network Rebranded 2018
HIT NETWORK REBRANDED 2018 44
Slide 45: Strategic Considerations – National Rebrand
STRATEGIC CONSIDERATIONS – NATIONAL REBRAND 1. Consolidated brand portfolio with national appeal and awareness – increased brand equity for regional radio 2. Production efficiencies & synergies across all mediums 3. Digital consolidation & efficiencies – apps & websites 4. National partnership oppor
Slide 46: The FM Network
THE FM NETWORK Winning aspiration The Hit Network – It’s personal. The Hit Network will be the leading entertainment companion for women in Australia. It will break the mould in entertainment by leveraging its brands to provide great experiences for its audiences. $ Develop experiences that Support
Slide 47: SCA Digital Stack – Creation of Brand Families
SCA DIGITAL STACK – CREATION OF BRAND FAMILIES Alignment of 8 digital radio stations under the Hit and Triple M brands – creating scale and simplicity 47
Slide 48: SCA Digital Stack: Unduplicated Audience Cume 430,000
SCA DIGITAL STACK : UNDUPLICATED AUDIENCE CUME 430,000 (5 CAPITAL CITIES ONLY) 4,286,000 Listen to SCA’s FM Network only 341,000 Listen to both SCA’s FM and 430,000 Digital Radio Listen exclusively to SCA’s Digital Radio Network only Survey 6 2018 Gfk. Total audience figure is unduplicated 48
Slide 49: Digital Radio in Australia
DIGITAL RADIO IN AUSTRALIA Access to digital radio growing rapidly - 24% growth in past 12 months 4.2 million • The number of DAB+ digital radios in Australia has climbed to 4.2 million by Q2 2018, up 24% in past 12 months. • 2.2 million portable / at home DAB+ units 2 million 2.2 million • 2 millio
Slide 50: Increased Audio Consumption - How and Where Listeners Want It
INCREASED AUDIO CONSUMPTION - HOW AND WHERE LISTENERS WANT IT SCA Content Consumer Choice Multiple Audio Devices & Platforms 50
Slide 51: Digital Content
DIGITAL CONTENT Extended awareness is creating improved engagement • The Purpose of Our Digital Content Assets is to drive consumers to engage with our Brands’ Audio content and initiate action to Download our owned and operated Apps • Utilising Broadcast Audio in short to mid form content, we Edito
Slide 52: Digital Content – FY18 Momentum YoY
DIGITAL CONTENT – FY18 MOMENTUM YOY Digital Audio Engagement Social Media Engagement +74% +55% +3% +73% Catch Up Radio Increase In Facebook Fans Instagram Fans Podcasts App Listeners 38 Million /annum 252k /month 8.8 Million 637,000 *Sources: Google Analytics Omny Analytics. CrowdTangle. June 2018 5
Slide 53: Smarter Audio
SMARTER AUDIO LIVE RADIO ON DEMAND SMART NEWS 106 streams 140 catch up shows 180 mins per week Smart speaker adoption more than doubled in 2018 in the US, and is following a similar growth trajectory in Australia 1 1 Source: Edison Infinite dial survey; SCA research insights 53
Slide 54: Talent Development: Hubble
TALENT DEVELOPMENT: HUBBLE • Great performers are anywhere, so we needed a world first approach to find them • A systematic and structured process allows for company-wide involvement, with consistent & measurable results to create confidence • Regional and Metro SCA stations already utilizing perfor
Slide 55: The 4 D's of Hubble – Developing Future Stars
THE 4 D’S OF HUBBLE – DEVELOPING FUTURE STARS DISCOVER DEPLOY • New media means more talent • SCA DAB+ assets utilized to available than ever before. expose talent to new- • Company-wide focus on audience. recruitment (84 stations nation- • Regional, Metro, and wide all involved) PodcastOne opportun
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Slide 58: Monetisation & Sales
MONETISATION & SALES BRIAN GALLAGHER CHIEF SALES OFFICER
Slide 59: SCA's Growth Agenda
SCA’s GROWTH AGENDA SCA’s growth in ad revenue will be driven by: • Audio is entering a “golden age” • SCA’s conversion of untapped growth in Regional media markets • Federal Government and electoral spending will fuel demand across the balance of FY19 59
Slide 60: Advertisers Are Over Invested in Digital
ADVERTISERS ARE OVER INVESTED IN DIGITAL “Media buying in Australia is too skewed to digital platforms, especially compared to other western media markets” 60
Slide 61: Digital Growth Has Flattened While TV Shows Steady Growth
DIGITAL GROWTH HAS FLATTENED OVER THE LAST 2 YEARS, WHILE TV HAS SHOWN A STEADY GROWTH TREND OVER THE LAST 12 MONTHS YoY Growth – Metro TV vs Digital 30.0% MTV (Rolling 12m) Digital (Rolling 12m) All Media (Rolling 12m) 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% Source: SMI 61
Slide 62: The Market Grew by 3.7% in the 12 Months to Sep-18
THE MARKET GREW BY +3.7% / +$273M IN THE 12 MONTHS TO SEP-18 Government $93.1 Domestic Banks $85.3 Gambling $55.8 Automotive Brand $41.1 Utilities $31.5 Retail $27.7 Media $22.0 Restaurants $19.1 Consumer Electronics $18.9 Business $16.5 Technology $12.0 Other Financial Services $11.1 Charities $10.
Slide 63: Sales Strategy FY19
SALES STRATEGY FY19 • Insight-led advertising solutions will deliver superior outcomes for our partners • Reach and branding building properties of radio is encouraging stronger interest and enquiry • SCA’s enjoys a unique TV and Radio position across Regional markets – 9 million people 63
Slide 64: Delivering Superior Advertising Outcomes for Brands
DELIVERING SUPERIOR ADVERTISING OUTCOMES FOR BRANDS CAPABILIITIES AND TOOLS THAT DRIVE SCA SALES STRATEGY 64
Slide 65: Audio that moves people.
Audio that moves people. Linking research to Thought leadership in the commercial ideas Facilitate collaborative client Science of Audio Audio designed to change audience idea sessions to build INSIGHT LED IDEATION behaviour 3D AUDIO Agency relationships STRATEGIC INSIGHTS JAM SESSIONS Agnostic idea
Slide 66: SCA Has the Largest Research Team in Australian Media
SCA HAS THE LARGEST RESEARCH TEAM IN AUSTRALIAN MEDIA Campaign Effectiveness Studies Marquee Studies Brand Tracking Studies 400,000 Research panel Creative Testing 66
Slide 67: Audio Continues to Evolve & Grow
AUDIO CONTINUES TO EVOLVE & GROW Radio Streaming services Podcasting 88% Australians listen to an 18% Australians have listened to 18% Australians have AM/FM/DAB+ station in an a streaming service in the last listened to a podcast in average week month/week the last month DAB+ Up 23% YoY Up 3% YoY U
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Slide 69: Which best describes the process of your order?
Which best describes the process of your order? 58% 42% When ordering, I asked my When ordering, I asked my smart smart speaker to purchase speaker to purchase the brand the item e.g. Tide e.g. Laundry detergent Source: ComScore: custom survey, March 2018. Q: You indicated you have made a purchase v
Slide 70: Unique Partnership with Veritonic to Develop Brand Sound Solution
UNIQUE PARTNERSHIP WITH VERITONIC TO DEVELOP BRAND SOUND SOLUTION LEFT BRAIN RIGHT BRAIN Global leader in audio testing and benchmarking Australian leader in audio creativity Combines unique AI with SCA’s 400,000 research panel Award winning ideas and respondents creative strategy Clients include Co
Slide 71: FY19 Audio Strategy
FY19 AUDIO STRATEGY 71
Slide 72: Metro Radio – DAB Improves Reach by +7.5%
METRO RADIO – DAB IMPROVES REACH by +7.5% SCA Metro Cumulative Reach, P10+ • Survey year to date sees the digital radio 10+ 5.5 5.2m 5 4.9m cumulative audiences lifting SCA overall delivery by +7.5% 4.5 • SCA’s DAB brands add an additional 360,000 Cume Reach 000s 4 unique listeners to the already im
Slide 73: Sydney Breakfast Closing the Gap on 2013 Peaks
IN 2018, SYDNEY BREAKFAST IS CLOSING THE GAP ON 2013 PEAKS Sydney Breakfast Revenue by Year ($m) 2Day 2MMM Revenue ($m) 2012 2013 2014 2015 2016 2017 2018f 73
Slide 74: Developing New Business
DEVELOPING NEW BUSINESS Hardware Content led campaign to launch a brand new hardware product. $250k+ budget. Launch campaign on Triple M Two videos produced with seeding on social channels “ “ 45% Campaign Best sales figures First to mind highlights for years. awareness among QUOTE FROM CLIENT Tradi
Slide 75: Converting Untapped Audiences
CONVERTING UNTAPPED AUDIENCES 75
Slide 76: 36.2% or 9 Million Australians Live and Work in Regional Areas
36.2% OR 9 MILLION AUSTRALIANS LIVE AND WORK IN REGIONAL AREAS 36% 34% 10% INVESTMENT BY 90% NATIONAL BRANDS IN REGIONAL AUSTRALIA 64% 66% IS UNDERWEIGHT VS. POPULATION AND INCOME POPULATION INCOME AD SPEND REGIONAL METRO Source: ABS, Jun-15 Estimated Resident Population by Territory & SMI 76
Slide 77: Regional Audiences Are Under Served by National Advertisers
REGIONAL AUDIENCES ARE UNDER SERVED BY NATIONAL ADVERTISERS – Retail Banking Example METRO REGIONAL $135.2M $8.04M • For example the main 4 banks spend 17 times IN ADVERTISING IN ADVERTISING more on metro audiences than regional. TRYING TO INFLUENCE TRYING TO INFLUENCE • The potential return from re
Slide 78: Category Growth Focus Quadrant - Regional Markets
CATEGORY GROWTH FOCUS QUADRANT - REGIONAL MARKETS HIGH GROWTH TV Travel, Appliances, Real Estate, Finance, Utilities, and Rural Maintain & retain Non-Alc beverages are Grow share large focus industries to grow Regional spend Household Food, Gambling, Govt and Retail Products &… pharma have potential
Slide 79: The Pathway to Automated Trading in Radio
THE PATHWAY TO AUTOMATED TRADING IN RADIO 2018 – 2020 ROADMAP 79
Slide 80: Leading Targeting & Automation Tech
LEADING TARGETING & AUTOMATION TECH • Industry solution electronic bookings module will deliver a live e-trading platform within 12 months for radio • Enables cloud based media planning • Leap frogs TV industry, first medium to offer single trading platform • Designed to facilitate transactional sal
Slide 81: Technology
TECHNOLOGY STEPHEN HADDAD CHIEF TECHNOLOGY OFFICER
Slide 82: Technology Services - Principles
TECHNOLOGY SERVICES - PRINCIPLES CLOUD COST DATA DRIVEN SECURITY AT OUR VENDORS TO BUY BEFORE VARIABILISATION DECISION MAKING CORE PARTNERS BUILD FIRST Where Where it is Use of data to Continue to focus Develop deep Re-use and appropriate a beneficial to SCA, inform decisions of on security at the r
Slide 83: IT and Broadcast Convergence
IT AND BROADCAST CONVERGENCE Across the industry traditional engineering / broadcasting technologies are converging with traditional IT technologies with a transition to IP based technologies. Our strategy is to deliver a “converged technology domain” that will deliver benefits, including: • Reduced
Slide 84: Working Towards a Converged IT and Broadcast Technology Services Team
WORKING TOWARDS A CONVERGED IT AND BROADCAST TECHNOLOGY SERVICES TEAM 1. Extending Technology Services established governance and controls - particularly in the areas of software and asset management and security and risk management 2. Extending Technology Services ‘Service Management’ capability -
Slide 85: Capability Assessment Mapped Against Industry Standard Framework
CAPABILITY ASSESSMENT MAPPED AGAINST INDUSTRY STANDARD FRAMEWORK ENGINEERING SCA01 Studio SCA02 TV Playout SCA03 Radio Playout SCA04 Radio Transmission SCA05 TV Transmission SCA06 SCA07 Digital Radio Building and Environment I* NFOTECH IT Management and Governance Framework - https://www.infotech.co
Slide 86: A Smarter Workplace – Positive Cost Implications
A SMARTER WORKPLACE – POSITIVE COST IMPLICATIONS New Radio Playout Efficient and NPC TV Playout Sales and Traffic system across the Sales - CRM Collaborative agreement Systems entire network Workplace • Enables centralisation of • Avoids significant capex • 360º view of current • Upgraded and • Enha
Slide 87: Modernised Audio Playout Systems
MODERNISED AUDIO PLAYOUT SYSTEMS What? Music Scheduling and Audio Playout for SCAs 78 Analogue & 36 Digital Radio Stations 1 Benefits Centralized Support Function resulting in reduction of technical staff Operational efficiencies in scheduling staff Reduction of panel operators in receiving
Slide 88: TV Playout and Presentation – The Past
TV PLAYOUT AND PRESENTATION – THE PAST SCA’s TV Playout Canberra • 105 Channels into 24 regional markets in Queensland, Southern NSW, Victoria, Tasmania, Darwin, Spencer Gulf, and VAST • The physical building that hosts the playout centre is 37 years old • SCA’s Playout facilities were established i
Slide 89: TV Playout and Presentation - NPC Solution
TV PLAYOUT AND PRESENTATION - NPC SOLUTION NPC Media, a JV between Nine and Seven, has been chosen as the future playout and presentation solution for SCA. The benefits of this pathway include but are not limited to: • Avoiding the requirement for significant CAPEX investment to refresh playout infr
Slide 90: Salesforce CRM – Introduced to SCA
SALESFORCE CRM – INTRODUCED TO SCA • Salesforce will enable increased collaboration across business units within SCA (Sales, Studio & Finance) by representing a single point of truth for customer • Increased business efficiencies through automation and standardisation of the sales process • Availabi
Slide 91: New Procurement Function Delivering Savings
NEW PROCUREMENT FUNCTION DELIVERING SAVINGS • The Procurement Team engages with all parts of the SCA business to assist with standardising procurement practices, increasing governance and reducing costs. • The results of these initiatives of the last 10 months have seen a total cost savings/avoidanc
Slide 92: Conclusion
CONCLUSION GRANT BLACKLEY CHIEF EXECUTIVE OFFICER
Slide 93: Conclusion
CONCLUSION • FY19 has commenced positively – 3.5% revenue growth in Q1 Current Trading • Balance sheet repair process completed – provides SCA with increased flexibility • Optimise audio assets • Grow new audio platforms Operational • Nationally aligned management structure will deliver Excellence i
Slide 94: Conclusion
CONCLUSION • Delivery of consistent cashflow to support dividend-flow Focus on capital • Disciplined allocation of capital returns • Target ROIC improvement and consistent EPS growth • Retain agility to respond to market changes • Clear alignment across Board, Executive and people of SCA • Acute und
Southern Cross Media Group — Investor Day (October 2018) on 6ix