Siriusxm Holdings Inc. · NASDAQ:SIRI
Siriusxm — SIRIUS XM Radio — Merrill Lynch Media Fall Preview Conference 2008
20 slides from Siriusxm's conference presentation, Sep 9, 2008
Slide 1: Exhibit 99.1
EXHIBIT 99.1
Slide 2: Mel Karmazin, Merrill Lynch Media Fall Preview Conference
Mel Karmazin Merrill Lynch Media Fall Preview Conference September 9, 2008
Slide 3: SIRIUS XM's unmatched programming
SIRIUS XM’s unmatched programming Approximately 70 Commercial-free Music Channels Pop, Rock, Dance, Hip-hop, R&B, Country, Christian, Jazz/Blues, Standards, Classical Latin/Int’l, Exclusive content, Live Music, Music “Neighborhoods” Over 65 news, sports, entertainment, international, weather and tra
Slide 4: Over 18.5 million subscribers and growing
Ending SIRIUS XM subs (millions) Over 18.5 million subscribers and growing Source: Company filings 0.6 0.8 1.1 1.6 2.0 2.6 3.2 4.4 5.2 6.2 7.2 9.3 10.6 11.6 12.3 13.7 14.5 15.4 16.2 17.4 18.0 18.6 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4
Slide 5: Scale creates greater operating leverage
Scale creates greater operating leverage Ranks among largest U.S. subscription media businesses Total subscribers as of 2Q08 (millions) 3.3 5.6 13.2 13.8 17.2 18.6 24.6 Comcast SIRIUS XM DirecTV Dish Network Time Warner Cable Charter Cablevision Source: Company filings
Slide 6: Illustrative combined OEM penetration as a percentage of U.S. auto sales
Illustrative combined OEM penetration as a percentage of U.S. auto sales Penetration gains at every major automaker Penetration gains expected to continue to drive net subscriber additions Source: Global Insight estimate as of June 2008 and company filings. Actual 2008 and 2009 numbers may differ ma
Slide 7: Combined approximate OEM sales and gross additions
Combined approximate OEM sales and gross additions (millions) Drives OEM growth despite a tough auto sales environment Despite the slowdown in new car sales, OEM gross adds are expected to rise in 2008 and 2009 14.0 14.0 17.0 16.6 16.2 2.6 3.6 5.3 5.9 6.0+ 2005A 2006A 2007A 2008E 2009E New cars OEM
Slide 8: Faster growth than other subscription media
Faster growth than other subscription media …And among the fastest growing U.S. media businesses 2009E Revenue Growth -3% 5% 7% 8% 9% 10% 13% PF Sirius/XM DirecTV Cablevision Time Warner Cable Comcast Dish Network Radio Industry Source: Company, Merrill Lynch or Consensus Estimates
Slide 9: Strong subscriber growth
Strong subscriber growth… Subscriber Guidance: Approximately 19.5 mm in 2008 and 21.5 mm in 2009 9.3 13.7 17.4 19.5 21.5 2008E 2009E Source: Company filings and estimates.
Slide 10: Drives revenue growth
…Drives revenue growth Revenue Guidance: Approximately $2.4 b in 2008 and $2.7 b in 2009 $0.8 $1.6 $2.1 $2.4 $2.7 2008E 2009E Source: Company filings and estimates.
Slide 11: Synergies: Approx. $425 mm in 2009 and growing
Synergies: Approx. $425 mm in 2009 and growing Synergies expected to grow in 2010 and beyond Expected approximate 2009 synergies: Satellite & Transmission: $20 mm Terrestrial repeater co-locations and new leases, headcount, and maintenance reductions Programming: $60 mm Management headcount, consoli
Slide 12: Synergies: Approx. $425 mm in 2009 and growing
Synergies: Approx. $425 mm in 2009 and growing Synergies expected to grow in 2010 and beyond Expected approximate 2009 synergies (continued): Sales & Marketing: $150 mm Rationalization of consumer marketing spend, executive management, consolidation of retail / OEM sales teams SAC: $50 mm Improved c
Slide 13: Synergies: Approx. $425 mm in 2009 and growing
Synergies: Approx. $425 mm in 2009 and growing Synergies expected to grow in 2010 and beyond Expected approximate 2009 synergies (continued): Research & Development: $25 mm Consolidation of aftermarket products, lower outside services costs, reduced headcount Revenue Synergies: $40 mm Improved reten
Slide 14: 2009E cash OpEx approximately 8% below PF 2007 levels
2009E cash OpEx approximately 8% below PF 2007 levels, despite 31% growth in revenue Operating expenses benefit from synergies and continued cost controls Adjusted EBITDA Guidance: PF approximately ($350) mm in 2008 and approximately $300 mm in 2009 Source: Company filings and estimates. Note, cash
Slide 15: 2009 maturities and refinancing
2009 maturities and refinancing February 2009 -- $300 mm SIRIUS Convert Exploring debt options and will act opportunistically May 2009 -- $350 mm XM Bank Debt Expect to extend maturities December 2009 -- $400 mm XM Convert Exploring options; will be refinanced following a year of solid integration e
Slide 16: New price plans to drive subscriber revenue growth
New price plans to drive subscriber revenue growth Best of SIRIUS/XM upgrade to launch October 6 $4 premium upgrade to be marketed to over 18 million existing subscribers Expected to improve self-pay churn and OEM conversion rates Best of SIRIUS on XM to include: Howard 100, Howard 101, Martha Stewa
Slide 17: SIRIUS XM Summary Highlights
SIRIUS XM Summary Highlights Best programming expected to drive subscriber and revenue growth Enhanced scale and competitive position Opportunity to reduce churn; improve conversion rate Increased advertising reach Continued improvement in subscriber economics Improved financial performance through
Slide 18: Disclaimer on forward-looking statements
Disclaimer on forward-looking statements The guidance contained herein are based upon a number of assumptions and estimates that, while considered reasonable by us when taken as a whole, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of
Slide 19: Reconciliation of non-GAAP financial metrics
Reconciliation of non-GAAP financial metrics This presentation and accompanying press release includes the following non-GAAP financial measures: cash operating expenses and adjusted EBITDA. SIRIUS XM defines cash operating expenses as total operating expenses less depreciation and amortization and
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