Siriusxm Holdings Inc. · NASDAQ:SIRI
Siriusxm — Sirius XM Radio — Shareholder Meeting (May 2013)
27 slides from Siriusxm's shareholder meeting presentation, May 21, 2013
Slide 1: Annual Stockholder Meeting May 21, 2013
Annual Stockholder Meeting May 21, 2013
Slide 2: Disclaimer on Forward-Looking Statements
The guidance contained herein is based upon a number of assumptions and estimates that, while considered reasonable by us when taken as a whole, is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control . In addition
Slide 3: Forward-Looking Statements: Risk Factors
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward - looking statements : • we face substantial competition and that competition is likely to increase over time ; • our business depends in l
Slide 4: Continuing Growth Delivers Record Number of Subscribers
Ending Subscribers ( mm) Continuing Growth Delivers Record Number of Subscribers 2009 2010 2011 2012 1Q13 2013E 18.8 20.2 21.9 23.9 24.4 ~25.3
Slide 5: SiriusXM's Superior Revenue Model
Clear Channel $12.91/ Listener Based on 2012 Revenue SiriusXM $142.34/ Subscriber Pandora $6.51/ Active User Source: Based on company filings SiriusXM’s Superior Revenue Model
Slide 6: New Auto Sales Trends
Source: Based on external industry estimates of 2007 - 17 automotive sales. Represents factory and port installs only. New Auto Sales Trends (millions) 33% 46% 56% 63% 68% 67% 16.1 13.2 10.4 11.6 12.7 14.5 15.3 15.9 16.3 16.3 16.3 Penetration Rate Total Auto Sales
Slide 7: SiriusXM-Enabled Vehicles in Operation to Increase Dramatically
0 20 40 60 80 100 120 SiriusXM - Enabled Vehicles in Operation to Increase Dramatically (millions) Source: Company estimates based on external industry estimates of 2013 - 18 automotive sales
Slide 8: Direct-to-Dealer Pre-owned Program Ramp
Direct - to - Dealer Pre - owned Program Ramp Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 103 1,570 2,822 3,734 4,640 6,098 7,075 8,135 >9,000 Participating Dealer Locations
Slide 9: 2013 Priorities
2013 Priorities • Deliver the best audio programming • Continue innovation • Long term c onnected c ar s trategy • Grow second o wner m arket • Customer s ervice and satisfaction
Slide 10: Programming and Content Objectives
Programming and Content Objectives • Expand rights and exclusivity • Develop and promote home grown talent • Evolve our formats • Pursue new and unique brands/talent • Engage subscribers with events and loyalty programs
Slide 11: Next Generation of Connected Vehicle
Next Generation of Connected Vehicle SiriusXM’s ability to deliver service via its satellite network and wireless networks cannot be matched by IP - only competitors • New potential revenue streams, ie . Nissan telematics services • Strengthens OEM relationships • Potential for personalized services
Slide 12: Q1 2013 Key Metrics
Q1 2013 Key Metrics ($ in millions) 1Q12 1Q13 % change Churn rate 1.9% 2.0% +10 bp Subscribers 22.3 mm 24.4 mm +9% Revenue $805 $897 +12% Adj. EBITDA $208 $262 +26% Net Income $108 $124 +15% FCF $15 $142 +865%
Slide 13: 2013 Guidance
2013 Guidance • Revenue of over $3.7 billion • Adjusted EBITDA of over $1.1 billion • Free cash flow of approximately $915 million • Self - pay net subscriber additions of approximately 1.6 million • Total net subscriber additions of approximately 1.4 million
Slide 14: Multi-Year Revenue Growth
Multi - Year Revenue Growth ($ billions) 2008 2009 2010 2011 2012 2013E $2.4 $2.5 $2.8 $3.0 $ 3.4 >$ 3.7 Note: 2008 figure is adjusted for the merger of Sirius and XM .
Slide 15: Strong Adj. EBITDA Growth
2008 2009 2010 2011 2012 2013E ($136) $463 $626 $731 $920 >$ 1,100 Strong Adj. EBITDA Growth ($ millions) Note: 2008 figure is adjusted for the merger of Sirius and XM .
Slide 16: Significant FCF Growth
2008 2009 2010 2011 2012 2013E $(552) $185 $210 $416 $709 ~$ 915 Significant FCF Growth ($ millions) Note: 2008 figure is adjusted for the merger of Sirius and XM .
Slide 17: Conservative Total Leverage
Conservative Total Leverage (Debt/Adj. EBITDA ) 2009 2010 2011 2012 6.7x 5.1x 4.1x 2.7x ~3.5x Long - term T arget
Slide 18: Operational Leverage Drives EBITDA Margins
Operational Leverage Drives EBITDA Margins Contribution margin of approximately 70% Adjusted EBITDA Margins 2008 2009 2010 2011 2012 2013E At Maturity (6%) 18% 22% 24% 27% 30% 40%+ EBITDA margin improves dramatically as we scale subscribers and revenue
Slide 19: Media Businesses EBITDA Margins
3% 21% 25% 27% 27% 32% 35% 37% Media Businesses EBITDA Margins 2012 EBITDA Margins Reflects SiriusXM’s Adjusted EBITDA; Source for others: Bloomberg
Slide 20: Media Businesses EBITDA Margins
3% 21% 25% 27% 30% 32% 35% 37% Media Businesses EBITDA Margins 2012 EBITDA Margins Reflects SiriusXM’s Adjusted EBITDA; Source for others: Bloomberg
Slide 21: Media Businesses EBITDA Margins
3% 21% 25% 27% 32% 35% 37% 40 %+ Media Businesses EBITDA Margins 2012 EBITDA Margins Reflects SiriusXM’s Adjusted EBITDA; Source for others: Bloomberg
Slide 22: Media Businesses FCF as a % of EBITDA
Media Businesses FCF as a % of EBITDA n/a 5% 23% 31% 31% 36% 46% 77% 2012 FCF / EBITDA Reflects SiriusXM’s Adjusted EBITDA; Source for others: Bloomberg
Slide 23: Capital Return Program
Capital Return Program • Special Cash Dividend of $0.05 per share completed on December 28, 2012: $327 million total payout • $2 billion common stock repurchase program commenced in 1Q13: repurchased total of 209 million shares as of April 26
Slide 24: Reconciliation for SiriusXM
Reconciliation for SiriusXM Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY 2011 FY 2012 As Reported Total Revenue 804,722 837,543 867,360 892,415 897,398 242,245 637,235 922,066 1,663,992 2,472,638 2,816,992 3,014,524 3,402,040 Predecessor Financial Information
Slide 25: Reconciliation for SiriusXM
Reconciliation for SiriusXM Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY 2011 FY 2012 As Reported Restructuring, Impairments and Related Costs - - - - - - 10,917 - 10,434 32,807 63,800 - - Predecessor Financial Information - - - - - - - - - - - - - Purchase Pr
Slide 26: Reconciliation for SiriusXM
Reconciliation for SiriusXM Unaudited For the Year Ended December 31, 2012 2011 2010 Cash Flow information Net cash provided by operating activities $806,765 $543,630 $512,895 Net cash used in investing activities $(97,319) $(127,888) $(302,414) Net cash used in financing activities $(962,491) $(228
Slide 27: SiriusXM Satellite Radio
SATELLITE RADI