Siriusxm Holdings Inc. · NASDAQ:SIRI
Siriusxm — Investor Presentation (September 2024)
26 slides from Siriusxm's investor presentation, Sep 17, 2024
Slide 1: Investor Presentation September 2024
INVESTOR PRESENTATION SEPTEMBER 2024 ©2024 Sirius XM Holdings Inc.
Slide 2: Cautionary Note Regarding Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans,
Slide 3: Sirius XM Holdings at a Glance
SIRIUS XM HOLDINGS AT A GLANCE: AN AUDIO ENTERTAINMENT LEADER AT THE INTERSECTION OF CULTURE AND INNOVATION Core Subscription Business Growing Advertising Business Built for the road, Growing streaming Leading global Human curated, Ad-supported digital integrated in 160M music & podcast adtech solut
Slide 4: Habit-Forming, Live, Human Curated Audio Experience
HABIT-FORMING, LIVE, HUMAN CURATED AUDIO EXPERIENCE Premium, exclusive content brings listeners closer to what moves them, from the music and personalities they love to must-hear moments and special events One-of-a-Kind Curated Premium channels, including 50+ artist Music Experience channels, plus l
Slide 5: Strong Customer Engagement & Satisfaction
STRONG CUSTOMER ENGAGEMENT & SATISFACTION Leading Share of Time Spent Listening Highly Satisfied Subscribers(3) % ad-free share of ear for paid services Weighted Average User Score (0-10) Overall Satisfaction “HOW SATISFIED WITH EACH OF THE FOLLOWING SERVICES?” (2) 21% 15% 2% 20% 8% AM/FM Price/Valu
Slide 6: Leading Subscription Metrics at SiriusXM
LEADING SUBSCRIPTION METRICS AT SIRIUSXM 1 2 3 4 5 6 $6.3 Billion (1) (1) $5.12(6)(6) Total SiriusXM Subscriber Revenue (’23A) $9.34(2)(2) ARPU (1) (Q2’24) 33 Million Total SiriusXM Paid Subscribers (6) (3) (3) ~5.0%(6)(4) Churn NA (Q2’24) 45%(4) (5) 51%(3) 21% Gross NA Margin (Q2’24) Source: Compan
Slide 7: Pioneering Digital Ad-Supported Audio Business
PIONEERING DIGITAL AD-SUPPORTED AUDIO BUSINESS Significant Reach Across Our O&O Properties and Extensive, Exclusive Content Networks $1.8 Billion Total SiriusXM Ad Revenue (’23A)(1) 150 Million Total Listeners(2) No. 1 In Ad-Supported Streaming Share of Ear(3) ~20 Years Powered by Our Full-Service Di
Slide 8: Innovating Today, Investing in Tomorrow
INNOVATING TODAY, INVESTING IN TOMORROW Introduction of Launch of New Foundation of Expansion in Opportunities Ad-Supported Next Generation Premium Radio Podcasting Ahead Digital Radio Platform Leveraging the strengths of our expanded portfolio to grow the business ©2024 Sirius XM Holdings Inc. 8
Slide 9: Providing More Value to a Broader Set of Listeners
PROVIDING MORE VALUE TO A BROADER SET OF LISTENERS New SiriusXM content, technology, & pricing targeted at better attracting growth segments and improving the monetization of our core demographic “Growth” Typically younger, ~10% penetrated, high Audience more diverse, willing consideration but to pa
Slide 10: Content Targets Core and Growth Segments
CONTENT TARGETS CORE AND GROWTH SEGMENTS Strategic investments in differentiated, exclusive hosts, channels & shows that build lasting connections across audience segments Cross-Demographic Core Growth ©2024 Sirius XM Holdings Inc. 10
Slide 11: Expanding Our Portfolio of Premium Podcast Content
EXPANDING OUR PORTFOLIO OF PREMIUM PODCAST CONTENT Broadening our audience, capitalizing on advertising opportunities, and enhancing our subscription value Widely Distributed SiriusXM Exclusives & Podcast Network Podcasts+ Subscription • Growing fandoms across all platforms • Increasing subscription
Slide 12: Radio, Reimagined: Innovation Across Platforms
RADIO, REIMAGINED: INNOVATION ACROSS PLATFORMS Building upon a new foundation to enhance the consumer experience in & out of the car, driving discovery, personalization & control New, Digital-First Foundation Ongoing Consumer Enhancements New Infrastructure Benefiting across Streaming App, 360L & the
Slide 13: Personalized, Content-Driven Marketing Journeys
PERSONALIZED, CONTENT-DRIVEN MARKETING JOURNEYS ENTICE CONSUMERS TO LISTEN EARLY & OFTEN SiriusXM has developed a series of behavior-based, AI-enabled, personalized journeys to help foster and nurture listening early in trial to convert trials to long-term customers. Fully personalized capabilities
Slide 14: Advancing Our Pricing Strategy
ADVANCING OUR PRICING STRATEGY Newly expanded plan structure designed to capture demand at every interest and engagement level Premium, Interactive Bundle Premium Future expansion with new tier including premium and interactive features as well as new bundle opportunities. Full Price Packages ~$20-3
Slide 15: Capitalizing on Ad-Based Opportunities
CAPITALIZING ON AD-BASED OPPORTUNITIES Innovating to deliver marketers the technology, data, and insights In-House Leading Expansive Rich First- AdTech Programmatic Reach Party Data Supporting Open Capabilities Ecosystem Source: 2023 IAB Internet Advertising Revenue Report by PwC Source: EMARKETER F
Slide 16: Untapped Ad Opportunity: The Car
UNTAPPED AD OPPORTUNITY: THE CAR SiriusXM is uniquely positioned to own this final frontier of digital ad-supported media Mix of New SiriusXM ~ 65 M Rapidly-increasing population of 360L and IP-only new and Vehicle Sales 360L Vehicles in Market by 2030, Excludes Streaming Only pre-owned vehicles on t
Slide 17: Leading Indicators Set Foundation for Future Growth
LEADING INDICATORS SET FOUNDATION FOR FUTURE GROWTH In-Car Streaming Younger Demos 360L Drives… ● New platform leads to growing consumption of ● Approximately 30% of new households we Xtra, on-demand, podcast, and video content acquire are Gen Y/Z ● Improved conversion of ~5 points across new in-app
Slide 18: Positioned to Capture Near-Term & Long-Term Opportunities
POSITIONED TO CAPTURE NEAR-TERM & LONG-TERM OPPORTUNITIES New programming, initiatives & functionality focused on increasing value & expanding consumer offerings, tapping into the full power of our combined portfolio to support future growth Roll-out new pricing Debut 360 podcast structure & expand a
Slide 19: Consistently Delivering Strong Results
CONSISTENTLY DELIVERING STRONG RESULTS Industry-leading margins and Strong FCF generation with Near-term focus on profitability decreasing satellite capex debt reduction Adj. EBITDA Margins Free Cash Flow Net Leverage $ Billions Pre-Merger Pro Forma Note: Company-defined free cash flow (FCF) includes c
Slide 20: History of Strong Capital Returns to Stockholders
HISTORY OF STRONG CAPITAL RETURNS TO STOCKHOLDERS Millions Millions $1,339 Substantial Share Buybacks & Float Reduction Meaningful Recurring Dividends Share Repurchases Recurring Dividend Transaction Related Share Count Reduction Special Dividend Note: The Liberty transaction resulted in the assumpt
Slide 21: Thank You
THANK YOU
Slide 22: Appendix
iriusX APPENDIX
Slide 23: Compelling Transaction Benefits
COMPELLING TRANSACTION BENEFITS ■ ■ Simplified Equity Structure Enhanced Trading Liquidity and Float Broadened potential investor base Eliminated multi-class structure The transaction offered every stockholder the opportunity to share in the long-term, profitable ■ Greater Strategic Flexibility with Ma
Slide 24: Final Exchange Ratio
FINAL EXCHANGE RATIO (in millions except SIRI Reference Price) Net Liabilities(1) $1,093 (÷) SIRI Reference Price $4.23 LSXM Net Liabilities Share Adjustment 258.3 Fully Diluted LSXM Shares(2) 326.9 (3) (+) Shares to settle LSXMA Convertible 25.1 Adjusted Fully Diluted LSXM Shares 352.0 Liberty Owne
Slide 25: Pro Forma Share Count
PRO FORMA SHARE COUNT, PRE-EXCHANGE RADIO ADJUSTMENT 1 2 1 Shares Associated with Net Liability Adjustment • $1,093MM net liabilities consisting primarily of LSXM’s existing Exchangeable, Margin Loan and Cash 2 Shares Associated with Convertible • LSXM shares underlying convertible of 25.1 based on
Slide 26: Pro Forma Capital Structure
PRO FORMA CAPITAL STRUCTURE As of 6/30/2024 SiriusXM (1) ($MM) Maturity Coupon LSXM Transaction Adjustment Pro Forma (Pre-Merger) Cash & Cash Equivalents $100 $88 $113 $213 Revolver ($1,750MM) 8/31/2026 S+160 350 - - 350 Financial Lease Obligations 13 - - 13 New Delayed Draw Term Loan A 9/9/2027(2)
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