Clear Channel Outdoor Holdings, Inc. · NYSE:CCO
Clear Channel Outdoor — Investor Day (September 2022)
106 slides from Clear Channel Outdoor's investor day presentation, Sep 8, 2022
Slide 1: Clear Channel Outdoor Investor Day 2022
Exhibit 99.2 Clear Channel Outdoor Investor Day 2022 September 8, 2022
Slide 2: Safe harbor statement
Safe harbor statement Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factor
Slide 3: Clear Channel Outdoor Investor Day 2022
Clear Channel Outdoor Investor Day 2022 September 8, 2022
Slide 4: European business update
European business update ▪ Prior to COVID, European business historically able to provide for its own cash needs ▪ European business currently and prospectively expected to fund its cash needs with operating cash flows and existing cash balances ▪ Divestiture alternatives via the European strategic
Slide 5: Objectives for today
Objectives for today rrr
Slide 6: Today's agenda & speakers
Today’s agenda & speakers Scott Wells Brian Coleman Clear Channel Overview Chief Executive Officer Chief Financial Officer Scott Wells The Marketplace: Opportunity & Vision Forward Why Advertisers Are Choosing Out of Home & Clear Channel Bob McCuin Customer Case for Technology Solutions & Innovation
Slide 7: Digital transformation
Digital transformation 7
Slide 8: CCOA growth potential
CCOA growth potential Highly advantaged position in growing advertising medium Technology & digital investment Attractive operating cash flow generation Attractive operating cash flow generation Experienced, proven leadership team 8
Slide 9: Out of Home: a growing, defensible ad medium
Out of Home: a growing, defensible ad medium 9
Slide 10: Technology & digital investment
Technology & digital investment ▪ 4-5x revenue ▪ Ideally long-term fixed lease or easement ▪ Great location IRRs in the low 30s 10
Slide 11: Digital display marketplace
Digital display marketplace $12B $119B 9% 89% 91% 11% 2011 2021 Direct Programmatic Source: Digital display eMarketer 2020; OOH Programmatic eMarketer Sep 2021 11
Slide 12: Digital transformation
Digital transformation Operating Operating Customer centricity cash flow cash flow Executional excellence 12
Slide 13: Experienced, proven leadership
Scott Wells Brian Coleman Lynn Feldman Chief Executive Officer EVP, Chief Financial Officer EVP, General Counsel & Experienced, proven Corp. Secretary leadership ▪ Deep expertise in real estate, operations and media sales Erika Goldberg Gene Leehan Bob McCuin EVP, Chief of Business EVP, Senior Regio
Slide 14: Experienced, proven leadership
Jason Dilger Michelle Costa Kenetta Bailey SVP, Chief EVP, Regional President, SVP, Marketing Accounting Officer South Central Experienced, proven leadership ▪ Deep expertise in real estate, operations and Jasper Johnson Jack Jessen Morten Gotterup EVP, Regional President, Clear Channel Regional Pre
Slide 15: What's great about Out of Home?
What’s great about Out of Home? 15
Slide 16: Steady growth, resiliency
Steady growth, resiliency Historical revenue Forecasted revenue $9.90 $9.50 $9.20 $8.70 $8.50 $7.90 $7.50 $7.50 $7.40 $7.20 $6.80 $6.80 $6.60 $6.50 $6.50 $6.40 $6.30 $6.00 $5.90 $5.80 $5.70 $5.40 $5.20 $5.10 $5.10 $5.00 $4.70 $4.30 $4.00 $3.70 $3.40 $3.10 $2.80 $2.70 $2.60 $2.50 $2.40 $2.20 $2.00 $1
Slide 17: } | McDonaics
} | McDonaics ‘our Quarter Pounder Allow me to re-introduce myself.
Slide 18: The power of location
The power of location TS Vy: 1:20 af
Slide 19: Local impact, national scale
Local impact, national scale 19
Slide 20: Good corporate citizens
Good corporate citizens ———"- DONATE TODAY! é| 2
Slide 21: Creating demand
Creating demand Increase Fight for maximum Bring more percentage spent share of marketers on OOH OOH budgets to OOH 21
Slide 22: Pursuing the opportunity
Pursuing the opportunity $319B $9B $195B 5% CCOA 16% OOH Total ad 5% spend spend for advertisers that use OOH 61% Opportunity Opportunity 95% 84% Opportunity 39% Total ad Total ad spend for Total OOH spend OOH users Source: 2022 Forecast as of Jun’22 Magna Global Forecast for the totals, splits base
Slide 23: Why advertisers are choosing Out of Home & Clear Channel
Why advertisers are choosing Out of Home & Clear Channel Bob McCuin Chief Revenue Officer 23
Slide 24: Evolving sales channels
Evolving sales channels 24
Slide 25: The marketplace opportunity
The marketplace opportunity National Small Current sweet spot budgets budgets Current sales force ▪ Local sellers ▪ National sales group Agency partnerships Customer Solutions Team Programmatic 25
Slide 26: Developing the plant-based meat category
Developing the plant-based meat category 26
Slide 27: Client-direct success
Client-direct success a w BEYOND MEAT MDAnderson ‘Gencer Center S Segment @ snyk d Stelary @® Tyson (() SLL toashitaton \V vinrast Post KOHLER. © ClickUp databricks rea security Wa @4cater asurion SHGRAYSCALE (SMIEIExpensify ea Clari
Slide 28: The marketplace opportunity
The marketplace opportunity National Small Current sweet spot budgets budgets Current sales force ▪ Local sellers ▪ National sales group Inside sales Agency partnerships Self service Customer Solutions Team Programmatic 28
Slide 29: Consumer key trends and OOH strengths
Mobile Consumer society attitudes 5 key trends OOH strengths Measurable Marketers’ impact needs 29
Slide 30: Strong consumer mobility
Strong consumer mobility ▪ For full year 2021, travel ▪ In the US, the average miles ▪ US DOT publishes vehicle averaged at 113% in the traveled per day in July miles traveled nationwide. United States compared to 2022 is 22 miles. This shows In June 2022, estimated pre-pandemic levels. that miles t
Slide 31: Consumers notice & like Out of Home
Consumers notice & like Out of Home Noticing Noticing OOH OOH ads % % ads more than 43 62 much more in pre-COVID cities of 1M+ % 85 of viewers find OOH ads useful Types of OOH ad messages consumers find most useful: ▪ 42% special offers and promotions ▪ 38% COVID safety and hygiene ▪ 29% awareness o
Slide 32: Consumers feel negatively towards online ads
Consumers feel negatively towards online ads Are annoyed Are concerned with ads that about personal interrupt security and % % viewing, data when 78 73 listening, and using online reading devices experiences Are actively Frequently trying to skip online spend less % % ads due to 68 43 time on digita
Slide 33: An impactful creative canvas
An impactful creative canvas 33
Slide 34: Innovative creative solutions
Innovative creative solutions 34
Slide 35: Netflix's Resident Evil Video
Netflix’s Resident Evil Video 35
Slide 36: Iconic, strategic locations
Iconic, strategic locations Outdoor & Airports 1 70,000+ displays Outdoor & Airports reach 130 Million 2 Americans weekly 92 DMAs including 3 of the top 44 50 Sources: 1: CCOA Inventory, June 2022 / 2: Geopath OOH Ratings (P5+), August 2022 / 3: Based on CCOA Outdoor & Airport inventory in Nielsen D
Slide 37: Markets with high growth rates
Markets with high growth rates 25% 20% 15% 10% Fastest growing markets 5% US population grew 7% from 2010-2021 0% Growth rate Source: 2021 Census Estimates; 2010 Census. Market definition based on DMA and compares 2010 and 2021 total population. 37
Slide 38: OOH & online activation
OOH & online activation OOH drives up to 40% of consumer online actions, while accounting for 4% of total media spend. 528 530 Online purchase Online search Share Index Share Index 489 586 Website visit Social media search Share Index Share Index 480 App download 696 Social media post Share Index Sh
Slide 39: App engagement
APP ENGAGEMENT OOH drove significant lift in orders from new app users and OOH delivers new & repeat repeat orders from existing customers. orders for app New order rates 31% Lift 0.34% 0.26% Unexposed Exposed OBJECTIVE Acquire new users and dominate select Florida markets for an 2X established deli
Slide 40: Changing needs of modern marketers
Changing needs of modern marketers 40
Slide 41: Why this matters
a 5) Why this matters rrr
Slide 42: Changing expectations of marketers
Mobile Consumer society attitudes Changing expectations OOH strengths of marketers Measurable Marketers’ impact needs 42
Slide 43: Think and act like digital media
Think and act like digital media 43
Slide 44: Customer case for technology
Customer case for technology Erika Goldberg Chief of Business Operations 44
Slide 45: Drive new sales, enable retention, increase productivity
Drive Enable Increase productivity new sales customer in traditional channels retention business 45
Slide 46: A manual, paper-driven, redundant process
A manual, paper-driven, redundant process
Slide 47: The vision for end-to-end workflow
Planning Buying The vision for end-to-end Activation workflow Invoicing Reporting 47
Slide 48: Unified inventory management
Unified inventory management 48
Slide 49: Our RAPID team
Our RAPID team RFP Growth 2017 2021 49
Slide 50: Connecting the pipes
Connecting the pipes rrr
Slide 51: AdQuick partnership
AdQuick partnership C New TSTON ses rroders contac search AeA nFocus Business & Money Sclence & Tech Lifestyle & Health Policy & Public Interest People & Culture AdQuick.com, Clear Channel Outdoor Innovate to Deliver Real-Time Availability Data to CQ Modernize Out-of-Home Media AdQuick Buying JARE T
Slide 52: From paper contracts to digital orders
From paper contracts to digital orders 52
Slide 53: Digital orders
Digital orders DOVER DOWNS - SALISBURY MULTI BULLETINS - 01/01/2022 $44,556.980 , AGENCY 7 CANCELLATION MANAGING AE @BOOKED ADVERTISER REFERENCE COMMISSIONABLE Ae NuMBER BILL-To customer [sccror BOOKING NOTES pares AD CATEGORY orverunes @ x2) FILTER 7 @\| 53
Slide 54: Technology-driven operations
Technology-driven operations 54
Slide 55: A more efficient Operations approach
A more efficient Operations approach 55
Slide 56: Digital flexibility
Digital flexibility 56
Slide 57: The foundation for programmatic
The foundation for programmatic 57
Slide 58: CCO Clear Access
CCO Clear Access 58
Slide 59: What comes next?
What comes next? Drive Enable Increase productivity new sales customer in traditional channels retention business 59
Slide 60: Clear Channel Outdoor RADAR suite of solutions
Clear Channel Outdoor RADAR suite of solutions Dan Levi Chief Marketing Officer 60
Slide 61: RADAR's suite of solutions
RADAR’s suite of solutions more effectively plan, amplify and measure impact By using mobile location data, which provides insights into consumer mobility and behavior, we can better understand and measure exposed OOH audiences 61
Slide 62: RADAR: A 360° planning, activation & measurement solution
Audience Planning RADAR: A 360° planning, activation & Integration measurement solution Amplification Attribution 62
Slide 63: Mobile data delivers audience-based insights
Mobile data delivers audience-based insights As people move throughout the day, their mobile phones provide an understanding of where they go and the routes they take to get there. 63
Slide 64: CCO RADAR delivers audiences exposed to OOH
CCO RADAR delivers audiences exposed to OOH Four criteria for accurate and verified OOH exposure: Viewing distance (set by Geopath) Direction of travel/roadway Location signal strength (frequency, recency and number of signals/devices) Digital Exposure (exact time/duration spot airs, matched to user
Slide 65: Efficient audience & location targeting
Efficient audience & location targeting A powerful tool to explore the best OOH solutions to reach your desired audience * Comprehensive view of CCO roadside inventory across 28 DMAs Access to 1,500+ behavioral audience segments plus demographic and location targeting Detailed audience insights for
Slide 66: Amplify reach & engagement
Amplify reach & engagement Amplify OOH and reinforce messaging when and where it matters ▪ Strategic approach to mobile and digital retargeting drives high engagement and response ▪ Easy to activate and extend reach of OOH and digital initiatives ▪ Detailed reporting and insights on key digital goal
Slide 67: Measure the impact of out-of-home
Measure the impact of out-of-home Measure campaign outcomes to understand OOH effectiveness ▪ Attribution solutions for a variety of marketing goals including visitation, brand affinity, TV tune in, mobile app usage, and more ▪ Broad range of leading mobile research & data partners ▪ Transparent rep
Slide 68: RADARProof
RADARProof Brand Lift Surveys AWARENESS solutions for Store Visitation a variety of INTEREST Retail, Dining, Auto, Tourism objectives App Download & BETA DECISION Online Engagement BETA TV Viewership Measure OOH impact on a wide variety of key BETA ACTION Product Purchase marketing goals ranging fro
Slide 69: OOH drives quick service restaurant visits
OOH drives quick service restaurant visits & delivers actionable insights Of audiences exposed to OOH % will travel more than 5 miles to 60 visit QSR stores Of those exposed to OOH will % travel 15+ miles from where 27 they live or work Lift in store visitation among % 170 those exposed 6+ times to
Slide 70: Full funnel measurement
Full funnel measurement 70
Slide 71: Brand awareness & online engagement
BRAND AWARENESS & ONLINE ENGAGEMENT The targeted, combined direct + programmatic DOOH campaign delivered significant lifts in monthly video views, DOOH drives online monthly active users and hours watched for Twitch’s Streamer Bowl event. It was also recognized for Best Use of Programmatic engagemen
Slide 72: Twitch Video
Twitch Video we e| 72
Slide 73: Integrated audience insights
Integrated audience insights Measure, plan and optimize OOH as an integrated part of your media mix ▪ Aligns mobile data on exposed OOH st rd audiences with 1 and 3 party insights ▪ Streamlined, privacy compliant process working with leading identity resolution partners ▪ Highly customized data solu
Slide 74: Opening doors to opportunity
Opening doors to opportunity Amplification Attribution Audience Planning Integration 74
Slide 75: Programmatic as a Driver of Growth
Programmatic as a Driver of Growth Cathy Muldowney SVP Programmatic Sales 75
Slide 76: The programmatic ecosystem
The programmatic ecosystem DSP SSP Demand Supply Ad Side Side Clear Channel Marketers Exchange Platform Platform Outdoor Real-time bidding More exclusive, fewer More buyers = more bid buyers + sellers competition Private Open Premium inventory + unique Transparency + inventory data marketplace excha
Slide 77: Programmatic drives digital growth
Programmatic drives digital growth Digital display marketplace $12B $119B 9% 89% 91% 11% 2011 2021 Direct Programmatic Source: Digital display eMarketer 2020; OOH Programmatic eMarketer Sep 2021 77
Slide 78: CCO's key innovations
CCO’s key innovations Integration with Magnite (Omnichannel SSP) PMP Transaction with DSPs First to market The Trade Desk Inflight Insights Dynamic Creative Partnership Testing Availability RADARView Audience First to market Targeting Availability First to market 2018 2020 2021 2022 2016 2017 2019 D
Slide 79: Primary focuses for programmatic
Driving Customer scale access Primary focuses for programmatic Data Incrementality solutions 79
Slide 80: Driving scale
Driving scale DSPs SSPs BETA BETA 80
Slide 81: Customer access & solutions
Customer National Small Current sweet spot access & budgets budgets solutions Agency partnerships 81
Slide 82: Ensuring incrementality
Ensuring National Small Current sweet spot incrementality budgets budgets % 75 + of revenue Agency partnerships 82
Slide 83: Data solutions to drive growth
Data solutions to drive growth Inflight insights objectives ▪ Create lightweight RADARProof attribution metrics that can be available mid-campaign vs. post- campaign ▪ Lower feasibility thresholds to make these insights available to more customers ▪ Provide directional insights that can support futu
Slide 84: Primary focuses for programmatic
Driving Customer scale access Primary focuses for programmatic Data Incrementality solutions 84
Slide 85: Short break
Short break September 8, 2022
Slide 86: Financial Overview
Financial Overview Brian Coleman Chief Financial Officer 86
Slide 87: Highlights
Highlights Expanded disclosures ▪ Revenue and inventory breakdown 1 ▪ AFFO Enhanced guidance ▪ Company reaffirms Q3 guidance and is providing additional FY2022 guidance Long-range outlook ▪ 2022-2025 long-range outlook: Revenue, 1 1 Adjusted EBITDA , AFFO 1 Non-GAAP measure. See slide 2 and the Appe
Slide 88: Disclosures and guidance implemented since Separation
Disclosures and guidance implemented since Separation Revenue-related: ▪ Quarterly revenue guidance by segment ▪ Digital vs. non-digital – Americas and Europe ▪ Billboard & other vs. Transit – Americas ▪ Local vs. National – Americas Expenses & capex: ▪ Site lease expense breakout – Americas and Eur
Slide 89: Revenue/inventory breakdown Americas
Revenue/inventory breakdown Americas Percentage of Revenues for LTM Q2 2022 Number of Displays as of June 30, 2022 Printed Printed Digital Billboard Printed Digital Digital Other Printed Digital Billboard Total Billboard Total % of Total Market and Other Transit Transit Billboard Digital Transit Tra
Slide 90: Introducing AFFO
1 Introducing AFFO (In Millions) 2021 1H 2022 Consolidated net loss $ (433) $ (155) Depreciation and amortization of real estate 210 103 Impairment of real estate 119 22 Other items - 4 1 Funds from operations (FFO) $ (104) $ (26) Capital expenditures - maintenance (49) (18) Depreciation and amortiz
Slide 91: Q3 2022 guidance
(in Millions) Low High 1 Q3 2022 Consolidated Revenue $ 625 $ 645 Confirming Americas 340 350 Q3 2022 1 Europe 270 280 guidance FY 2022 cash interest payments $ 341 (approx.) FY 2022 capital expenditures $ 185 $ 205 1 Excludes movements in FX 91
Slide 92: FY 2022 guidance
(in Millions) Low High 1 Consolidated Revenue $2,600 $ 2,635 Americas 1,355 1,375 1 Europe 1,170 1,190 1, 2 Adjusted EBITDA $ 560 $ 590 3 Segment Adjusted EBITDA FY 2022 Americas 555 570 1 Europe 130 145 guidance 1, 2 Adjusted Corporate expense $ 125 $ 135 Cash interest payments $ 341 (approx.) Capi
Slide 93: Ongoing expected guidance to begin with Q4 earnings
Ongoing expected guidance to begin with Q4 earnings Revenue: Consolidated, Americas and Europe ▪ Next quarter guidance ▪ Annual guidance 1 Adjusted EBITDA : Consolidated, Americas and Europe ▪ Annual guidance 1 Adjusted Corporate expense ▪ Annual guidance Capex ▪ Annual guidance ▪ Provide approximat
Slide 94: Long-range outlook: Consolidated Revenue
Long-range (In Millions) outlook $2,600 - $2,635 $2,241 Consolidated Revenue Revenue growth driven by continued investment in digital and strategies presented by the team 1 1 FY 2021A FY 2022E FY 2025E today 1 Excludes movements in FX. Calculated by converting amounts in local currency to U.S. dolla
Slide 95: Long-range outlook: Adjusted EBITDA
Long-range (In Millions) outlook $560 - $590 1 Adjusted EBITDA $423 Strong operating leverage drives higher growth in 1 Adjusted EBITDA 2 2 FY 2021A FY 2022E FY 2025E 1 Non-GAAP measure. See slide 2 and the Appendix for definitions and uses of these measures and reconciliations to GAAP. 2 Excludes m
Slide 96: Long-range outlook: AFFO
Long-range (In Millions) outlook 1 AFFO $160 - $180 Strong operating leverage drives higher growth in 1 1 Adjusted EBITDA & AFFO $36 2 2 FY 2021A FY 2022E FY 2025E 1 Non-GAAP measure. See slide 2 and the Appendix for definitions and uses of these measures and reconciliations to GAAP. 2 Excludes move
Slide 97: Clear Channel Outdoor Investor Day 2022
Clear Channel Outdoor Investor Day 2022 September 8, 2022
Slide 98: Q&A
Q&A 98
Slide 99: Clear Channel Outdoor
la Cc Clear Channel Outdoor GET MORE WITH US.
Slide 100: Appendix
Appendix 100
Slide 101: Non-GAAP financial information
Non-GAAP financial information Non-GAAP Financial Information In order to provide a more comprehensive understanding of the information used by the Company’s management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain
Slide 102: Revenue/inventory breakdown Global
Revenue/inventory breakdown Global Percentage of Revenues for LTM Q2 2022 Number of Displays as of June 30, 2022 Printed Digital Total Printed Digital Total % of total displays displays displays displays displays displays displays Americas markets 47% 38% 44% 56,524 2,168 58,692 11% Americas airport
Slide 103: Reconciliation of consolidated net loss to AFFO
(In Millions) 2021 1H 2022 Consolidated net loss $ (433) $ (155) Depreciation and amortization of real estate 210 103 Loss on disposal of real estate, net of tax 1 6 Impairment of real estate 119 22 Adjustment for unconsolidated affiliates and non-controlling (1) (2) interest Funds from operations (
Slide 104: Reconciliation of consolidated net loss guidance to AFFO guidance
FY 2022 (In Millions) Low High Consolidated net loss $ (150) $ (123) Depreciation and amortization of real estate 204 204 Loss on disposal of real estate, net of tax 10 10 Impairment of real estate 22 22 Adjustment for unconsolidated affiliates and non-controlling 3 3 interest Funds from operations
Slide 105: Reconciliation of consolidated net loss to Adjusted EBITDA guidance
FY 2022 (In Millions) Low High Reconciliation Consolidated net loss $ (150) $ (123) Adjustments: of Income tax expense 5 5 Other expense, net 39 39 Consolidated Interest expense, net 360 363 Other operating expense, net 3 3 net lossJXLGDQFH Impairment charges 22 22 Adjusted WR Depreciation & amortiz
Slide 106: Reconciliation of Corporate expenses to Adjusted Corporate expenses guidance
Reconciliation of FY 2022 (In Millions) Corporate Low High Corporate expenses $ (159) $ (169) expenses JXLGDQFH Restructuring and other costs 13 13 Share-based compensation 21 21 to Adjusted Adjusted Corporate expenses $ (125) $ (135) Corporate Note: Excludes movements in FX. Due to rounding, the to
Clear Channel Outdoor Holdings — Investor Day (September 2022) on 6ix