Slide 1: HY2017 Results Presentation
HY2017 RESULTS PRESENTATION 14 August 2017 1
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Continued Double Digit Revenue and Earnings Growth
CONTINUED DOUBLE DIGIT REVENUE AND EARNINGS GROWTH REVENUE UNDERLYING1 18.0% 33.6% NPATA Sector outperforming • Out of Home (OOH) ad spend +8.5% vs 1.6% fall in total all other advertising media industry spend (SMI2 data) mediums • oOh! grew faster than Out of Home (OMA3 data) • More than half of gr
Slide 4: H1 2017 Financial Highlights: Continued Earnings Growth
H1 2017 FINANCIAL HIGHLIGHTS: CONTINUED EARNINGS GROWTH +18.2% +18.0% +32.7% +27.0% +34.8% +33.6% ($m) H1 2017 H1 2016 Change (%) Underlying NPATA 15.3 11.5 33.6% Underlying EPS (cps) 5.3 4.0 31.9% Interim dividend (cps, fully franked) 4.5 4.0 12.5% Net debt / Underlying EBITDA 1.7x 1.6x 0.1x • Reve
Slide 5: Continuing to Deliver the Digital Strategy
CONTINUING TO DELIVER THE DIGITAL STRATEGY Digital Revenue % • Digital revenue of $90.2m, up 38.1% on H1 2016 100.0 52.1% 60.0% 90.0 • Digital revenue represented 52.1% of H1 44.5% 50.0% revenue 80.0 • Total digital asset portfolio: 8,000 screens (230 70.0 $m Digital Revenue 90.2 40.0% large format)
Slide 6: Financial Performance
FINANCIAL PERFORMANCE 6
Slide 7: Benefit of a Diversified Audience Portfolio
BENEFIT OF A DIVERSIFIED AUDIENCE PORTFOLIO 2.3% 4.6% ($m) H1 2017 H1 2016 Change (%) Road 9.2% Road 63.9 56.8 12.4% Retail H1 2017 36.9% Fly 14.3% REVENUE Retail 56.6 45.9 23.2% BY Locate PRODUCT Fly 24.7 26.5 -6.8% Other AS A % New Zealand Locate by oOh! 15.9 13.4 18.6% 32.7% New Zealand 4.0 4.0 0
Slide 8: Profit and Loss
PROFIT AND LOSS ($m) H1 2017 H1 2016 Change (%) Revenue • Strong revenue growth 173.0 146.6 18.0% Cost of media sites and production (97.7) (86.5) (13.0%) • Gross Profit driven by strong performances in Road and Retail Gross Profit 75.3 60.1 25.1% • Underlying EBITDA growth of Gross profit margin (%
Slide 9: Key Balance Sheet Items and Credit Ratios
KEY BALANCE SHEET ITEMS AND CREDIT RATIOS ($m) 30 Jun 31 Dec Change 2017 2016 ($) • Strong balance sheet position to support future growth Cash and cash equivalents 8.0 8.2 (0.2) • Net debt / Underlying EBITDA ratio Trade and other receivables 79.6 79.4 0.2 of 1.7x Other current assets 9.0 8.7 0.3 •
Slide 10: Cash Flow
CASH FLOW • Net cash flow from operating ($m) H1 2017 H1 2016 Variance ($) activities of $11.5m tripled as a result of a stronger EBITDA and improved EBITDA 31.9 26.8 5.1 working capital management Net change in working capital and • Included in net cash from operating 1.0 (11.0) 12.0 activities is
Slide 11: Business Strategy
YOUR woRLD YOUR Wav 4) ANZS BUSINESS STRATEGY
Slide 12: The oOh! Strategy
THE oOh! STRATEGY CONSUMER ENGAGEMENT x MOBILE a ADVERTISING | TECHNOLOGY ROAD RETAIL 9 LOCATE SALES | FINANCE | ASSETS | SYSTEMS | OPERATIONS Unmissable 12
Slide 13: Leading Diverse Australian Out of Home Portfolio
LEADING DIVERSE AUSTRALIAN OUT OF HOME PORTFOLIO BALANCED LEASE PORTFOLIO 21,000 SIGNS ONLINE INCL 8,000+ DIGITAL RETAIL ACROSS ROAD, RETAIL, FLY AIRPORT AND PLACE BASED LOCATIONS ROAD GYM MOBILE EDGE OFFICE STUDY SPORT CONTENT VENUE CAFE WIFI 13
Slide 14: Independent Study: oOh! Delivers Highest ROI in OOH
INDEPENDENT STUDY1: oOh! DELIVERS HIGHEST ROI IN OOH Analytic Partners - study of Out of Home audience environments to understand relative returns to advertisers 1.8 1.67 1.59 1.6 1.4 1.2 1.05 2 1.02 1 1 0.91 0.8 0.74 0.7 0.6 0.4 0.32 0.2 0 3 Locate oOh!media Retail Experiential Airport Roadside Non
Slide 15: Performance of Acquisitions
PERFORMANCE OF ACQUISITIONS Integration completed Acquisitions Rationale and update * • Inlink and ECN merged with full cost synergies achieved • Total portfolio of over 3,500 screens in Australia and New Zealand CBD with 90% digital • Improved performance in H2 anticipated • Full implementation / t
Slide 16: oOh! Has the Best Data Set in Out of Home
oOh! HAS THE BEST DATA SET IN OUT OF HOME oOh!’s exclusive data set extends audience targeting to how people actually purchase QSegments (282 segments) (2.5b Transactions) Retail Formats Road Where Insurance consumers spend Automotive Retail Entertainment Where 2.5m customers consumers commute Food
Slide 17: Audiences + Better Data = Increased Advertiser Value
AUDIENCES + BETTER DATA = INCREASED ADVERTISER VALUE oOh!’s best in class data optimises an advertiser’s audience reach, specifically targeting consumers with a proven propensity to purchase a product category or brand Current Way Future Way TRADITIONAL POWERED Total PPL14+ 5.5m 6.8m Reach1 Yoghurt
Slide 18: Outdoor Is Performing More Impressively
DATA + SYSTEMS + LOCATION = MORE EFFECTIVE CAMPAIGNS CBA used Classic and Digital formats to build brand awareness across mass audiences “…OUTDOOR IS PERFORMING MORE IMPRESSIVELY. THIS IS SHAPING UP TO BE A NEW CBA then utilised their ATM network to ask key questions to Australians GOLDEN AGE FOR OU
Slide 19: Strategy to Deliver Sustainable Long-Term Growth
STRATEGY TO DELIVER SUSTAINABLE LONG-TERM GROWTH MOST DIVERSIFIED ACQUISITIONS DIGITAL INVESTING IN PORTFOLIO DELIVER CONVERSION DATA, CONTENT PLATFORMS, RUNWAY AND SYSTEMS IS AUDIENCE AND CONTINUES CRITICAL TO THE • Broadest audience CONTENT NEXT GROWTH reach in Australia • Continued target PHASE •
Slide 20: Outlook
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Slide 21: Outlook
OUTLOOK • The Out Of Home sector is expected to continue to grow over CY 2017 despite mixed performance of other media sectors • oOh!media will continue to execute its end to end digital strategy, including the continued roll out of the pilot program using its Quantium-powered data analytics platfor
Slide 22: Questions
QUESTIONS 22
Slide 23: Appendix
LET'S GET DOWN TO BUSINESS BU hal
Slide 24: Financial Information Notice
FINANCIAL INFORMATION NOTICE oOh!media’s Financial Statements for the half year ended 30 June 2017 are 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 r
Slide 25: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important notice and disclaimer This document is a presentation of general background information about the activities of oOh!media Limited (oOh!media or oOh!) current at the date of the presentation, 14 August 2017. The information contained in this presentation is o