Southern Cross Media Group Limited · ASX:SXL

Southern Cross Media — Investor Presentation (October 2014)

57 slides from Southern Cross Media's investor presentation, Oct 30, 2014

  1. Slide 1: Regional Operations

    For personal use only REGIONAL OPERATIONS RICK LENARCIC 65

  2. Slide 2: Southern Cross Austereo

    For personal use only Z Nf. JS \ SOUTHERN CROSS AUSTEREO engaging 66

  3. Slide 3: For personal use only

    5SE lia) 104.9starFM Southern CrossTen Peston

  4. Slide 4: Regional population and revenue

    8,336,832 For personal use only POPULATION $337M $189M TOTAL AIRTIME LOCAL AIRTIME REVENUE REVENUE 6868

  5. Slide 5: For personal use only

    For personal use only 22 Wi(.,, A Al + SOUTHERN CROSS AUSTEREO engaging

  6. Slide 6: For personal use only

    todatj” “abil: Me SOUTHERN CROSS AUSTEREO : Ir absolutely engaging

  7. Slide 7: LocalWorks: everything local

    LocalWorks everything local engaging “abit A \\ SOUTHERN CROSS AUSTEREO SI ’ 71

  8. Slide 8: LocalWorks: everything local

    VocalWorks, everything local Southern Cross Southern Cross Ten TELEVI N walitlay %\ SOUTHERN CROSS AUSTEREO engaging JI 72

  9. Slide 9: For personal use only

    370,931 $11.2M J 762,900 $13.7M 1,807,100 = $56.8M Te 3,631,100 $65.3M 1,245,701 fos $21.1M 519,100 $20.2M J % we 73

  10. Slide 10: Regional reach and assets

    72 RADIO For personal use only 30 TV SUB ONLINE MOBILE STATIONS MARKETS SOCIAL REACH POTENTIAL OF REACH POTENTIAL OF 57 INDIVIDUAL 5.2M 6.3M REGIONAL WEBSITES 16,403 AVERAGE DAILY UNIQUE BROWSERS1 53 FACEBOOK PAGES 303 35 TWITTER PAGES SALES STAFF ON THE GROUND 1. Nielsen Online Ratings – Market Int

  11. Slide 11: For personal use only

    For personal use only 75

  12. Slide 12: For personal use only

    For personal use only 76

  13. Slide 13: Active clients

    77 13,500 ACTIVE CLIENTS USING RADIO For personal use only ACTIVE CLIENTS USING TV 6,500 26,000 ACTIVE INDIVIDUAL CLIENT ACCOUNTS 77

  14. Slide 14: Everything local

    network idaiyj everything local 4, Southern Cross Ten Os 78

  15. Slide 15: Local market share

    For personal use only 79 Source: KPMG 4AGG January – August 2014 local market share

  16. Slide 16: For personal use only

    For personal use only 80 80

  17. Slide 17: For personal use only

    For personal use only 81 81

  18. Slide 18: Local market share

    For personal use only Source: KPMG 4AGG January – August 2014 local market share 82

  19. Slide 19: Local market share

    For personal use only Source: KPMG 4AGG January – August 2014 local market share 83

  20. Slide 20: Border Radio

    star THEDIVER, 3 105.7 ‘SS BORDER RADIO

  21. Slide 21: Border Radio

    i04.9starrmM ie THERIVER BORDER RADIO

  22. Slide 22: Local revenue and clients

    86 $5.2M For personal use only LOCAL REVENUE 430 220 140 LOCAL RADIO CLIENTS LOCAL TV CLIENTS MULTIMEDIA CLIENTS 86

  23. Slide 23: For personal use only

    TERIVER 105. Ferm=~sonoen RADIO

  24. Slide 24: For personal use only

    For personal use only 88

  25. Slide 25: For personal use only

    For personal use only 89 89

  26. Slide 26: Albury total revenue and clients

    90 3,252 $43.8M TOTAL REVENUE For personal use only TOTAL PACKAGES ALBURY 125 61 37 BRANDWORKS RADIO BRANDWORKS TV BRANDWORKS CLIENTS CLIENTS MULTIMEDIA CLIENTS 90

  27. Slide 27: For personal use only

    $2.5M 3 OVER THE PAST 7 YEARS $12M

  28. Slide 28: Regional staff

    For personal use only REGIONAL STAFF 1,300 92

  29. Slide 29: Digital

    For personal use only DIGITAL GUY DOBSON 93

  30. Slide 30: Audience scale

    For personal use only AINN NT AUDIENCE NTIMATE SCALE " A AW A QA sonar

  31. Slide 31: Digital ad spend significant growth

    DIGITAL AD SPEND SIGNIFICANT GROWTH For personal use only FY14 +22% $4.4B 95 SOURCE: PRICE WATERHOUSE COOPERS IAB DIGITAL ADVERTISING SPEND REPORT: FY 14

  32. Slide 32: Digital display fastest growing segment

    DIGITAL DISPLAY FASTEST GROWING SEGMENT For personal use only (Excluding Paid Search / Google) FY14: $2.38B +34% YOY DRIVEN BY DIGITAL VIDEO, MOBILE AND SOCIAL 96 SOURCE: PRICE WATERHOUSE COOPERS IAB DIGITAL ADVERTISING SPEND REPORT: FY 14

  33. Slide 33: Mobile is eating the world

    Mobile is eating the world SOLOMOVO Social Local Mobile Video

  34. Slide 34: SCA traffic increase since Dec 2012

    SCA TRAFFIC +909% INCREASE SINCE DEC 2012 300,000 AVERAGE DAILY UNIQUE BROWSERS For personal use only Source: Nielsen Online Ratings – Market Intelligence, Average Daily UB, 1/12/2012 to 30/09/2014 98

  35. Slide 35: SCA social six times larger than next radio group

    SCA SOCIAL SIX TIMES LARGER THAN NEXT RADIO GROUP For personal use only PAGE LIKES Source: Facebook, Oban Social – Jul 2013 to Sep 2014 99

  36. Slide 36: SCA engagement volumes dwarf other media

    SCA ENGAGEMENT VOLUMES DWARF OTHER MEDIA For personal use only AVG. ENGAGEMENT* 100

  37. Slide 37: SCA leads publisher industry with mobile first strategy

    SCA LEADS THE PUBLISHER INDUSTRY WITH MOBILE FIRST PRODUCT STRATEGY For personal use only % ADUB VIA MOBILE (EXC. TABLET) DRIVEN BY DIGITAL CONTENT & SOCIAL Source: Nielsen Online Ratings – Market Intelligence (Domestic) - % of Avg. Daily Unique Browsers (ADUB) via mobile (exc. Tablet) – May 2013 to

  38. Slide 38: Digital revenue growth

    DIGITAL REVENUE GROWTH For personal use only FY14 + 19% FY15 + 30% (SDLY) Digital Revenue Only SOURCE: SCMG INTERNAL Modest Base 102

  39. Slide 39: Digital partnerships accelerating growth

    DIGITAL PARTNERSHIPS ACCELERATING GROWTH For personal use only AD TECH + PROGRAMMATIC VS CONTENT + SOCIAL Amplify 103

  40. Slide 40: Digital strategic focus

    DIGITAL STRATEGIC FOCUS For personal use only SCA DIGITAL SCA COMMUNITY BROADCAST AUDIENCE + CONNECTED DEVICE = OF PROFILED FANS 104

  41. Slide 41: SCA audience engagement driving profile data

    SCA AUDIENCE ENGAGEMENT DRIVING PROFILE DATA For personal use only 105

  42. Slide 42: Digital headlines

    DIGITAL HEADLINES For personal use only • Investment in Original Digital Content and New Digital Product is driving daily traffic growth three times faster than the AU Digital Market in H1. * • SCA dominates Radio Peer Group and closing gap on Digital Publishers. ** • Strategic focus on Profile data

  43. Slide 43: Sales

    For personal use only SALES ANDREA INGHAM 107

  44. Slide 44: SCA set up to meet the needs of our clients

    SCA SET UP TO MEET THE NEEDS OF OUR CLIENTS For personal use only CONTENT TRADING IDEAS ACTIVATION CREATION Efficiency/etrading Disruptive Production Execution Systems Talent Content excellence Accuracy Integration Quality Automation 108

  45. Slide 45: SCA strengths

    SCA STRENGTHS For personal use only DEPTH OF DIGITAL SCALE TALENT SIZE OF SALES RESEARCH CONTENT FORCE 109

  46. Slide 46: Content is king, context is god

    For personal use only IF THEN CONTENT IS CONTEXT IS KING GOD 110

  47. Slide 47: Fine line between cut through and invasive

    For personal use only FINE LINE BETWEEN CUT THROUGH + INVASIVE 111

  48. Slide 48: From brief to content-led idea

    FROM TO For personal use only Brief Brief Brainstorm idea Content/ talent Content for TO for idea approval Fleshed out & Fleshed out & presented presented 112

  49. Slide 49: For personal use only

    For personal use only 113

  50. Slide 50: Ambi Pur Road Trip campaign

    2Day FM Beer estas 1200 ‘Check out the rogue odours hitching a ride in Pamela Vanderson, will our passengers notice? We did some experiments with Ambi Pur Australia & New Zealand - WATCH here: htto:/bit.\y/PamVanexperiment Ambi Pur Road Trip 144,592 people reached Lice - Comment: Snare a7 De 2 wal i

  51. Slide 51: For personal use only

    For personal use only 115

  52. Slide 52: GroupM annual event

    For personal use only • GroupM Annual event – invite only • 400 executives responsible for $3.0B in ad spend • Partners – SCA, Pandora, Shazam, Newscorp, Val Morgan 116

  53. Slide 53: For personal use only

    For personal use only 117

  54. Slide 54: Metro radio audience and power ratio

    METRO RADIO AUDIENCE & POWER RATIO (18-54) Power Ratio For personal use only SCA Metro Radio 1.15 1.10 1.11 1.10 1.07 1.03 1.04 1.05 1.00 1.01 1.01 0.98 0.99 0.95 0.98 0.96 0.90 0.90 0.85 0.88 0.88 0.81 0.80 2010 2011 2012 2013 2014* Today SCA Duopoly Triple M SOURCE: SOURCE: Nielsen NielsenTotal Au

  55. Slide 55: Revenue building projects

    REVENUE BUILDING PROJECTS For personal use only • Improved systems – e trading • Deeper use of talent and integration for clients • Data - Tracking of audiences across media • Further leverage of assets 119

  56. Slide 56: Q&A

    For personal use only Q&A RHYS HOLLERAN 120

  57. Slide 57: Thank you

    For personal use only SOUTHERN CROSS AUSTEREO THANK YOU

Southern Cross Media Group — Investor Presentation (October 2014) on 6ix