Ooh Media Ltd · ASX:OML
Ooh Media — H1 2023 Earnings Presentation
38 slides from Ooh Media's earnings presentation, Aug 21, 2023
Slide 1: Half Year Results Presentation
oOh!media Limited ABN 69 602 195 380 21 August 2023 ASX Release HALF YEAR RESULTS PRESENTATION oOh!media Limited (ASX:OML) (oOh!) attaches its 2023 Half Year presentation. This announcement has been authorised for release to the ASX by the Chief Executive Officer. *** Investor Relations contact: Med
Slide 2: 1H 2023 Results
1H 2023 Results 21 August 2023
Slide 3: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Chris Roberts (CFO) • 1H Results in focus • 1H 2023 Highlights • Financial results • CY23 lease maturity profile update • Strategy update • Outlook and wrap up • Questions 2
Slide 4: 1H Results in Focus
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Slide 5: 1H 2023 Results in Focus
1H 2023 Results in Focus oOh! revenue Out of Home is grew 7%, in line the fastest with the market growing media (excluding the segment impact of CoS) 2H 2023 NSW contract 2023 contract Outlook – wins – $30m in renewals – continued annualised active positive momentum revenue upside dialogue expected
Slide 6: Out of Home is the fastest growing media segment
Out of Home is the fastest growing media segment OOH share of Total Media (SMI), Jan to Jun annually 15.0% 14.0% 14.0% 13.7% • OMA reported double digit net revenue growth in 1H 2023 of 13.1% 12% on the prior corresponding period1 13.0% 12.3% 12.0% 11.7% • Out of Home (OOH) captured 14.0% of Austral
Slide 7: 1H 2023 Highlights
1H 2023 Highlights
Slide 8: 1H 2023 Highlights
1H 2023 Highlights Revenue up 7% New contract wins Financial strength • Revenue of $296.6M (up 7% on the • New commercial contracts for • Share buy back completed. prior corresponding period), despite Sydney Metro, Woollahra Council Gearing at 0.9X and expected to all agency media revenues in a and
Slide 9: 1H 2023 Key Financials
1H 2023 Key Financials Revenue growth of 7% delivering adjusted NPAT of $20.5M, allowing oOh! to increase its interim dividend by 17% to 1.75c KEY PERFORMANCE METRICS1 STATUTORY METRICS1 Revenue Gross Profit 7% (1%) $296.6M $196.1M Adjusted Gross Opex Margin2 (3.4 ppts) 1% $67.8M 41.4% Adjusted Unde
Slide 10: Double-digit growth in Road & Fly drives revenue up 7%
Double-digit growth in Road & Fly drives revenue up 7% Road benefitting from both broadcast revenue shifting from FTA TV and oOh! gain in share 1H 2023 1H 2022 Change Q1 Q2 • 7% revenue growth driven by Formats1 Change Change ($M) ($M) % vs pcp outperformance by Road and growth 2.8% 1.8% % vs pcp %
Slide 11: Financial Results
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Slide 12: Reconciliation of Adjusted v Statutory Results
Reconciliation of Adjusted v Statutory Results Change in adjusted results broadly aligned with change in statutory result Adjusted Financials Reported Financials 276.1 296.6 276.1 296.6 +7% +7% 198.6 -1% 196.1 123.6 -1% 122.6 131.6 -2% 128.3 51.5 -4% 49.6 1H 2022 $M 1H 2023 $M 1H 2022 $M 1H 2023 $M
Slide 13: Adjusted NPAT per share up +6%
Adjusted NPAT per share up +6% oOh! delivered an adjusted EBITDA of $49.6M, and with continued cost focus is well positioned for the traditionally stronger 2H • Gross profit and gross margin declined to $122.6M and 41.4% respectively, as a result ADJUSTED P&L1 1H 2023 ($M) 1H 2022 ($M) Change ($M) o
Slide 14: Reported NPAT up by 6% to $6.4M
Reported NPAT up by 6% to $6.4M REPORTED P&L 1H 2023 ($M) 1H 2022 ($M) Change ($M) Revenue 296.6 276.1 20.5 Cost of media sites and production (100.5) (77.5) (22.9) Gross profit 196.1 198.6 (2.4) Gross profit margin (%) 66.1% 71.9% (5.8 ppts1) Total operating expenditure2 (67.8) (67.0) (0.8) Underly
Slide 15: Increase in capex focused on growth initiatives
Increase in capex focused on growth initiatives Cash flows1 1H 2023 ($M) 1H 2022 ($M) Change ($M) Adjusted EBITDA 49.6 51.5 (2.0) • Capex nearly doubling as investment returns towards pre Covid levels Net change in working capital and 3.2 0.5 2.7 • Free cash flow declined $22.3M as a result of a cat
Slide 16: Balance sheet remains strong following share buy back
Balance sheet remains strong following share buy back Balance sheet1 30 Jun 2023 ($M) 31 Dec 2022 ($m) Change ($m) • Gearing at 0.9x following completion of share buy back, and expected to Cash and cash equivalents 15.5 40.0 (24.6) decline in 2H Trade and other receivables 100.0 113.0 (13.0) Other a
Slide 17: CY23 Lease Maturity Profile Update
CY23 Lease Maturity Profile Update
Slide 18: Positive dialogue continuing with key 2023 renewal targets
Positive dialogue continuing with key 2023 renewal targets • oOh! continues to have positive active dialogue with CY23 Adjusted Revenue1 Maturity Profile commercial partners. No material change in status for those leases expiring in CY23 since December 2022 300.0 50.0% 45.0% • $85M of CY22 revenue a
Slide 19: Strategy Update
Strategy Update
Slide 20: Make it easy for our customers to achieve better outcomes
1 3 Make it easy for our Lead Out of Home to customers to achieve better a digital first future outcomes 2 Capture audience attention in public spaces at scale
Slide 21: Green field contract wins to deliver $30M of annualised revenue upside
Green field contract wins to deliver $30M of annualised revenue upside in Sydney's most prestigious locations All new, 100% digital, high impact assets reaching premium audiences across Sydney CBD and eastern suburbs Sydney Metro Trains (NSW) Woollahra Council (NSW) Martin Place (NSW) Eight new flag
Slide 22: Key contract wins strengthen oOh!'s Sydney network
Key contract wins strengthen oOh!’s Sydney network • A key step in executing oOh!'s network strategy of securing highly desirable audiences in premium Sydney CBD and inner suburb locations • Strategic packaging across both Sydney Metro Trains and Woollahra Council will create a compelling Sydney CBD
Slide 23: reooh signs first major retailer
reooh signs first major retailer New business in high-growth Retail Media space to provide annual recurring revenue • Retail media predicted to grow to $2.14B by 20261 • In-store digital screens considered a key growth engine of Retail Media • oOh!'s new business division, reooh provides a turnkey s
Slide 24: oOh!'s new data partnerships unlock additional capabilities
oOh!’s new data partnerships unlock additional capabilities in data-led planning and reporting A global first Out of Home audience-led planning and attribution capability, Categories powered by leading transactional data sets. Data set of Accessible across expanded group of categories Enhanced data
Slide 25: Outlook
Outlook
Slide 26: Outlook
Outlook Q3 continuing Out of Home growth momentum • Out of Home is expected to continue to take revenue share from other media • oOh!’s Q3 media revenue is currently pacing at +7% on the pcp • Media revenue growth and pacing are provided as a proxy for total revenue performance, with the addition of
Slide 27: Wrap Up
Wrap Up Out of Home fundamentals remain Financial strength strong • 12% increase in EPS and 6% increase • OOH continuing to take revenue in adjusted NPAT per share share from other media • Interim dividend increased by 17% New contract wins Continued momentum expected • Success in winning new Sydney
Slide 28: Questions
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Slide 29: Appendix
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Slide 30: Advertising category performance - SMI
Advertising category performance - SMI1 1H 2023 SMI category share for Out of Home SMI Agency Spend 1H 2023 Pacing vs 1H 2019 -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 9% Retail Retail 6% Automotive Brand Automotive Brand Food/Produce/Dairy 6% Insurance Banking 41% Alcoholic Beverages Travel 6% Trave
Slide 31: Revenue by quarter 2019-2023
Revenue by quarter 2019-2023 250.0 200.0 +12% vs pcp +3% vs pcp 150.0 $M 100.0 50.0 - Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 30
Slide 32: COGS bridge
COGS bridge 1. Reduction in rent abatements of $4.5M is the difference between the $7.3M of net abatements received in 1H 2022 and $2.8M of net abatements in 1H 2023. The abatements for 1H 2023 have not been detailed in the 31 statutory accounts following the expiry of the COVID-19 practical expedie
Slide 33: Opex bridge
Opex bridge $M. 80.0 78.0 76.0 74.0 72.0 70.0 68.0 66.0 64.0 62.0 60.0 72.0 ‘Opex 1H 2022 (3.4) (One-cif employee costs One-off costs 0.9 Change in loss on sale of assets 0.7 Duptcation of data costs 2.0 Labour inflation 0.5 Increase in travel & entertainment 0.5 as Other 73.1 Opex 1H 2023 32 coh! u
Slide 34: Reported NPAT to Adjusted NPAT reconciliation
Reported NPAT to Adjusted NPAT reconciliation 1H 2023 1H 2022 Change ($M) ($M) ($M) Reported NPAT 6.4 6.1 0.3 AASB 16 income and expense items: Lease modification income (0.0) (0.2) 0.1 Fixed lease obligations (78.7) (80.0) 1.3 Depreciation 71.5 74.3 (2.8) Interest 17.5 17.1 0.3 Tax effect of AASB 1
Slide 35: Adjusted vs Reported Results Reconciliation
Adjusted vs Reported Results Reconciliation 1H 2023 1H 2023 Change 1 Key changes: EBITDA increase of $79M offset • Depreciation and amortisation has P&L ADJUSTED ($M) REPORTED ($M) ($m) by a Depreciation and Amortisation increase of increased by circa $71M due to the $72M and an Interest expense inc
Slide 36: Financial information notice
Financial information notice Glossary EBIT Earnings before interest and tax oOh!’s Financial Statements for the half year ended 30 June 2023 presented in accordance with Australian EBITDA Earnings before interest, tax, depreciation and amortisation Accounting Standards. NPAT Net profit after tax oOh
Slide 37: Financial information notice
Financial Financialinformation notice information notice This document is a presentation of general background information about the activities of Forward looking statements are provided as a general guide only, and should not be relied on as oOh!media Limited (oOh!media or oOh!) current at the date
Slide 38: Sydney
Sydney T +61 (2) 9927 5555 Level 2, 73 Miller Street North Sydney NSW 2060 Melbourne T +61 (3) 8598 0700 Level 3, 101 Moray Street South Melbourne VIC 3205 Brisbane T +61 (7)3620 2900 56 Doggett Street Newstead QLD 4006 Adelaide T +61(8)8367 3222 84 Frome Street Adelaide SA 5000 Perth T +61 (8)6160