Ooh Media Ltd · ASX:OML
Ooh Media — H1 2020 Earnings Presentation
27 slides from Ooh Media's earnings presentation, Aug 24, 2020
Slide 1: H1 2020 results presentation
H1 2020 results presentation 24 August 2020
Slide 2: Highlights
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Slide 3: Highlights
Highlights ▪ Gearing more than halved to 1.2X ▪ $80m+ in cash / cost savings ▪ Green shoots in Q3 / New Zealand Net Debt $m 400.0 354.5 300.0 200.0 67% 115.2 100.0 - Dec 19 Jun 20 ▪ Decisive early action by the business to raise additional capital 1, cut costs and capex, and manage cash flows. Net d
Slide 4: H1 key financials
H1 20 key financials Balance sheet resilience and cost control Pre AASB 161 outcomes and changes vs the pcp Revenue NPAT (33%) (355%) $205.0m ($23.0m) Gross Profit EPS (45%) (251%) $69.1m (5.7 cents) Interim Dividend COGS and Opex (22%) No dividend n/a $194.2 declared Underlying2 Gearing EBITDA (81%
Slide 5: COVID-19 impact & mitigations
COVID-19 impact & mitigations 5
Slide 6: Revenues impacted in Q2 by COVID-19
Revenues impacted in Q2 by COVID-19 oOh!’s diverse portfolio partially mitigated reduced CBD and Fly audiences Change Q1 % Q2 % H1 2020 H1 2019 ▪ Q1 flat and Q2 down 62% vs pcp – share % vs change change 4% ($m) ($m) 5% pcp vs pcp vs pcp held1 Commute 72.7 111.5 (35%) 3% (69%) ▪ Commute was heavily
Slide 7: Case study: a strong NZ rebound, Aus improving
Case study: a strong NZ rebound, Aus improving oOh! revenue pacing vs audience1 pacing (monthly pcp) ▪ New Zealand rapidly accelerated to circa 80% of pcp pacing after the initial lock down ended on 15 June2 120% ▪ oOh!’s presence in New Zealand is mostly represented Increase in 100% COVID-19 by bus
Slide 8: $80m+ achieved in cash / cost savings for FY20
$80m+ achieved in cash / cost savings for FY20 Item Outlined on 26 March1 Updated FY20 position Fixed rent expense savings $10m to $15m $31m currently confirmed for FY20, of which $17m benefitted the second quarter •• Separately $14m of fixed rent payments due in 2020 have been deferred to 1H21 (c
Slide 9: Fixed cost actions enhancing EBITDA
Fixed cost actions enhancing EBITDA “Natural stabilisers” “Active cost base management” “External support” ▪ oOh!'s natural variable component of its cost base complemented by management actions ▪ Rent abatements contributed a circa $17m reduction in the fixed rent base, offset by a circa $1m substi
Slide 10: Longer term initiatives actioned
Longer term initiatives actioned Focusing on margin growth through the recovery cycle Cost of Goods Sold Operating expenditure Capex ▪ The business is committed to achieving rent ▪ Restructure cost savings - a $10m exit ▪ The business will continue to balance reductions beyond 2020 run rate implemen
Slide 11: Gearing halved to 1.2X and net debt down 67%
Gearing halved to 1.2X and net debt down 67% ▪ Early capital raise reduced FY19 proforma1 gearing from 2.6X to 1.4X, versus a covenant of 4.0X ▪ Strong receivables collection, substitution of pre-paid fixed rent to post paid variable rent, and significantly reduced capex during the half further lowe
Slide 12: Financial performance
Sparks will fly. The 340kW Cayenne E-Hybrid. ERVICE SENTRE LS (i Financial performance unmissable
Slide 13: Decisive cost actions partially mitigated revenue decline
Decisive cost actions partially mitigated revenue decline ▪ Q1 flat with pcp and Q2 decline in line with Out Of Home market P&L pre AASB 161 H1 2020 ($m) H1 2019 ($m) Change ($m) ▪ Share held across ANZ Revenue 205.0 304.9 (99.9) Cost of media sites and production (135.9) (178.2) 42.3 ▪ Gross profit
Slide 14: Strong H1 cash flows support financial resilience
Strong H1 cash flows support financial resilience ▪ First half free cash inflows of $77.8m Cash flows1 H1 2020 ($m) H1 2019 ($m) Change ($m) compared to a $10.7m outflow in the pcp EBITDA (pre AASB 16) 7.9 49.1 (41.2) ▪ Working capital benefit from receivables Net change in working unwind in H1 is n
Slide 15: Strengthened balance sheet - gearing more than halved
Strengthened balance sheet - gearing more than halved ▪ Strong receivables collection and cost Balance sheet1 30 Jun 2020 ($m) 31 Dec 2019 ($m) Change ($m) savings complemented the capital raising to reduce net debt Cash and cash equivalents 125.1 61.2 63.9 Trade and other receivables 37.7 133.5 (95
Slide 16: Business strategy
Hey Sydney Lowfare Rideshare is here! Business strategy =
Slide 17: oOh! is well positioned to capitalise on structural opportunities
oOh! is well Most extensive & diversified network Innovative and disciplined culture positioned to • Further digitisation • Growth and innovation opportunity culture capitalise on • Investments to drive • Coupled with cost and enhanced yield and capex discipline performance • Robust risk structural
Slide 18: Outlook
Outlook 18
Slide 19: Outlook
Outlook FY 2020 ▪ Trading conditions remain uncertain and difficult to forecast ▪ Q3 continues to build on Q2 with August currently pacing at 60% of pcp versus 25% for the month of May, and growing month on month momentum ▪ The market appears to be trading circa two weeks shorter than normal so it i
Slide 20: Questions
Questions 20
Slide 21: Appendix
Appendix 21 Highlights
Slide 22: oOh! performed in a challenged Q2 per SMI
oOh! performed in a challenged Q2 per SMI1 oOh! Q2 oOh! Vs Out of Home Out of Home Vs Media Market oOh! Australian revenues by category2 Food/Produce/Dairy -8% -28% Domestic Banks 14% -40% Food/Produce/Dairy 9% Automotive Brand 7% -32% Retail Retail 2% -39% 9% Automotive Brand Travel 4% 3% Domestic
Slide 23: AASB16 Reconciliation
AASB16 Reconciliation H1 2020 H1 2020 Change 1 Pre AASB 16 ($m) Post AASB 16 ($m) ($m) Key changes: EBITDA increase of $102.1m ▪ Depreciation and amortization costs are offset by a Depreciation and Amortisation disproportionally high on adoption of AASB Revenue 205.0 205.0 - increase of $87.3m and a
Slide 24: NPAT to NPATA reconciliation
NPAT to NPATA reconciliation H1 2020 H1 2019 Change 1 Pre AASB 16 Pre AASB 16 ($m) ($m) ($m) NPAT (23.0) 9.0 (32.0) Add: Non-operating items 2.9 6.9 (4.0) Less: tax impact of non- (0.3) (2.1) 1.8 operating items Underlying NPAT (20.4) 13.9 (34.3) Add: Amortisation relating to 5.1 6.2 (1.1) acquired
Slide 25: Financial information notice
Financial information notice oOh!’s Financial Statements for the half year ended 30 June 2020 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 relate the
Slide 26: Important notice and disclaimer
Important notice and disclaimer Important notice and disclaimer Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors
Slide 27: Office locations
Sydney Melbourne Brisbane Level 2, 76 Berry St, North Sydney, Level 3,165 Fitzroy St, St Kilda, 54 Doggett St, Newstead, NSW, 2060, Australia VIC, 3182, Australia QLD, 4006, Australia Tel: +61 (2) 9927 5555 Tel: +61 (3) 8598 0700 Tel: +61 (7) 3620 2900 Adelaide Perth Auckland 84 Frome St, Adelaide,