Slide 1: CY2016 Results Presentation
CY2016 RESULTS PRESENTATION 20 February 2017
Slide 2: Contents
CONTENTS 1 Highlights UN 2 3 4 Business strategy Operational highlights Financial performance MISS 5 6 7 Merger update Guidance Questions ABLE A Appendix
Slide 3: 1. Highlights
1. HIGHLIGHTS
Slide 4: CY2016 Highlights
CY2016 HIGHLIGHTS FINANCIAL DIGITAL EXPANSION CONTENT & DATA STRATEGIC • Revenue of • Added: • Progressing ACQUISITIONS AND $336.1m, up 20.1% o 29 Road large Quantium for MERGERS format screens launch in 2017 • Integration of Inlink • Underlying EBITDA o 39 EVOKE Retail of $73.5m, up large format •
Slide 5: 2. Business Strategy
2. BUSINESS STRATEGY
Slide 6: Strategy for Growth
STRATEGY FOR GROWTH DIVERSITY OF STRONG END TO END CREATING AUDIENCE & PRODUCT + MATURITY PROFILE + DIGITAL STRATEGY + INSPIRATIONAL LEADERSHIP = VALUE 6
Slide 7: Operational Highlights
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Slide 8: Diverse Product Portfolio
DIVERSE PRODUCT PORTFOLIO A product portfolio which underpins oOh!media’s ability to deliver audiences to advertisers 14,000+ • Successful integrations of recent acquisitions • ECN acquisition extended total business audience 8,000+ reach to 1.8 million people per week • Digital screens increased to
Slide 9: Strategic Acquisitions & Integrations
STRATEGIC ACQUISITIONS & INTEGRATIONS Acquisitions Rationale and update • Entry point to access CBD audiences with addition of 2,800 digitals screens * • Business integration complete • Performing ahead of expectations with revenue growth of over 50% from CY2015 • ECN acquisition adds to CBD office
Slide 10: Growing Digital Market Position
GROWING DIGITAL MARKET POSITION oOh!media’s ANZ digital portfolio – 8,000+ digital signs and 8 online platforms 54 1,600+ 500+ 4,800+ 8 Road digital screens Retail digital screens internal Locate by oOh! proprietary online and growing including 72 large Fly panels CBD, gym, uni, café platforms forma
Slide 11: CY2016 Digital Highlights
CY2016 DIGITAL HIGHLIGHTS DIGITAL REVENUE AS A • Digital revenue of $153.3m, up 71.7% on % OF TOTAL REVENUE CY2015 representing 45.6% of total revenue • Large format digital screens of 190, up from 90 45.6% in CY2015 31.9% • Digital revenue target of 45-50% of total revenue achieved 23.0% 17.0% 153.
Slide 12: Contracts
CONTRACTS REVENUE MATURITY PROFILE • Continue to maintain balanced and diverse lease 35.2% maturity profile • Contract renewals in any calendar year to the end 20.4% of CY2020 no greater than 21.0% with 16.2%1 up 14.8% for renewal in CY2017 16.2% 13.4% • 243 large format Road billboard renewals 110.
Slide 13: Content & Data
CONTENT & DATA • Increased owned online platforms to eight – added Junkee Media to existing assets such as Shortpress • Expanded content capabilities in the fast growing full motion video, increasingly being used across our digital portfolio • Exclusive agreement with Quantium to access buyergraphic
Slide 14: Digital Innovation
DIGITAL INNOVATION MEAT AND LIVESTOCK AUSTRALIA EXCITE CAMPAIGN SUMMARY 53,520 SATURDAY (9,437) TOTAL INTERACTIONS TUESDAY (8,333) MOST POPULAR DAYS 900 2 MINUTES, 12 NUMBER OF MOBILE SECONDS ENTRIES ENTERED AVERAGE SESSION DURATION 14
Slide 15: Financial Performance
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Slide 16: CY2016 Financial Highlights
CY2016 FINANCIAL HIGHLIGHTS ($m) CY2016 CY2015 Change (%) Revenue 336.1 279.8 20.1% Underlying EBITDA 73.5 57.7 27.4% Underlying NPATA 35.6 28.5 24.8% NPATA 32.9 27.7 18.8% Underlying EPS (cps) 23.3 19.0 22.5% Full year dividend (cps, fully franked) 14.0 9.5 47.4% Net debt / Underlying EBITDA 1.6x 1
Slide 17: Revenue by Product
REVENUE BY PRODUCT 2.9% 2.2% ($m) CY2016 CY2015 Change (%) 8.6% Road 124.6 110.9 12.3% REVENUE 37.1% Retail 109.2 99.0 10.2% 16.7% BY PRODUCT Fly 56.0 54.5 2.8% AS A % Locate by oOh! 28.9 9.8 196.4% 32.5% New Zealand 9.8 5.6 75.2% • All products experienced revenue growth • Strong Road performance i
Slide 18: Profit and Loss
PROFIT AND LOSS ($m) CY2016 CY2015 Change (%) Revenue 336.1 279.8 20.1 • Strong revenue growth Cost of media sites and production (191.2) (168.6) (13.4) • Gross Profit driven by strong performances in Road and Locate by Gross Profit 144.9 111.2 30.3% oOh! Gross profit margin (%) 43.1% 39.7% 3.4 ppts
Slide 19: Key Balance Sheet Items and Credit Ratios
KEY BALANCE SHEET ITEMS AND CREDIT RATIOS ($m) 31 Dec 31 Dec Change 2016 2015 ($) • Strong balance sheet position to support future growth Cash and cash equivalents 8.2 18.5 (10.3) • Net debt / Underlying EBITDA ratio of Trade and other receivables 79.4 60.1 19.3 1.6x maintained and well within bank
Slide 20: Net Debt Reconciliation
NET DEBT RECONCILIATION ($m) • Movement in net debt predominantly 190 attributable to acquisitions o Strong EBITDA contribution of 170 $70.3m 150 o Dividend payments of $16.0m 60.6 o Income tax and interest payments 84.2 130 of $15.4m o Capex of $39.0 from digitising 110 portfolio and the investment
Slide 21: Cash Flow
CASH FLOW • Net cash flows from operating activities ($m) CY2016 CY2015 Variance ($) of $54.1m relatively flat with CY2015, predominantly as a result of larger tax EBITDA 70.3 56.6 13.7 payments Net change in working capital and • Working capital impacted by increase in (0.8) 3.0 (3.8) accounts rece
Slide 22: 5. Merger Update
5. MERGER UPDATE
Slide 23: Merger Update
MERGER UPDATE 1 BOARD RECOMMENDATION • The Board of oOh!media is in full support of the merger and recommends that shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to the Independent Expert concluding that the Scheme is in the best interests of oOh!media s
Slide 24: 6. Guidance
6. GUIDANCE
Slide 25: Guidance
GUIDANCE • The Out Of Home sector is expected to grow over CY2017 despite increasing competitiveness in the media sector from both traditional and new media • oOh!media plans to continue to execute its end to end digital strategy • Acquisitions made in CY2016 are now successfully integrated with ful
Slide 26: Questions
EXPEDIA PRESENTS i rt S&P / ASX Z Buy _ Sell o xpedia.com.au
Slide 27: A. Appendix
A. APPENDIX
Slide 28: Financial Information Notice
FINANCIAL INFORMATION NOTICE oOh!media’s Financial Statements for the year ended 31 December 2016 are 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 re
Slide 29: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important notice and disclaimer This document is a presentation of general background information about the activities of oOh!media Limited (oOh!media) current at the date of the presentation, 20 February 2017. The information contained in this presentation is of gene
Slide 30: Office locations
Sydney Melbourne Level 2 Level 3 76 Berry Street 165 Fitzroy Street North Sydney St Kilda NSW 2060 VIC 3182 T 02 9927 5555 T 03 8598 0700 Brisbane Adelaide 54 Doggett Street 84 Frome Street Newstead Adelaide QLD 4006 SA 5000 T 07 3620 2900 T 08 8367 3222 Perth Media Tonic 201 Subiaco Road Subiaco WA