Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Macquarie Connections Conference 2011
15 slides from Southern Cross Media's conference presentation, May 4, 2011
Slide 1: Investor Presentation – Macquarie Connections Conference
For personal use only Investor Presentation Macquarie Connections Conference Presented by: Steve Kelly, CFO 4th May 2011
Slide 2: A leading Australian media company
A leading Australian media For personal use only company Merged Group would be one of Australia’s leading media companies • Revenues of $696 million1 • EBITDA of $230 million1 • Combined reach of over 95% of Australians • Integrated radio and TV operations • Multi-platform content offering • Radio c
Slide 3: Potential broadcasting reach of over 95% of Australians
Potential broadcasting reach For personal use only of over 95% of Australians Darwin Darwin TV1 Cairns Atherton Townsville Regional Queensland TV1 Mount Isa Mackay Mt Isa TV1 Rockhampton Emerald Bundaberg Remote Central and Eastern Australia TV2 Maryborough Roma Kingaroy Nambour Toowoomba/ Warwick B
Slide 4: Integrated media offering
Integrated media offering For personal use only Television • 21 commercial television licences across 12 television Licence Areas Radio • Radio coverage of every metropolitan market and 39 regional markets across Australia Digital and online 4
Slide 5: Well positioned in digital and online
Well positioned in digital and For personal use only online Television • SCM has completed its transition to digital TV • SCM’s digital TV offering includes Eleven, One, 7Two and 7mate • Eleven early results have been encouraging Radio • Austereo owns the largest share of capital city DAB spectrum a
Slide 6: Complementary programming
Complementary programming For personal use only • Breadth of talent across breakfast, morning, afternoon and drive • Powerful breakfast shows • Fifi & Jules, Hamish & Andy and Kyle & Jackie O’s Hour of Power successfully launched on the Hit Music Network • Continued rating strength on the Gold Coast
Slide 7: Diversified product and geographic mix
Diversified product and For personal use only geographic mix Diversity of integrated media revenues – radio, television and online • Product mix provides stable and growing revenues • Radio provides greater stability and resilience through the cycle • Television benefiting from digital multi-channel
Slide 8: Material Synergies
Material Synergies For personal use only Annual synergies and operational improvements of $12 million - $15 million • The directors of SCM believe annual synergies and operational improvements of $12 million to $15 million should be realised in full by the Merged Group by FY2014 and each year therea
Slide 9: Material Synergies
Material Synergies For personal use only Revenue synergies Cost synergies • Successful selling programs • Removing duplication • Increased creative capability • Austereo listing costs • Broader customer base • Scale benefits re supplier services and procurement • Coordinating sales programs • Ration
Slide 10: Final Transaction Funding
Final Transaction Funding For personal use only • Invested Funds: • Austereo equity $724 m • SXL & AEO Transaction Costs $ 32 m $756 m • Funding Sources: • 6 for 7 renounceable rights issue $471 m • Increased debt $222 m • Cash $ 63 m $756 m • Re-Financing of SXL & AEO: • SXL $300 m • AEO $203 m $50
Slide 11: Recent Events
Recent Events For personal use only • April 5 we reached 94% ownership • Offer closed April 19 with 99.1% acceptances - remaining shares compulsorily acquired • SXL & AEO will be consolidated from 1 April 2011 • Institutional Rights Issue (83%) commenced April 6 @$1.45 • 99% take-up • Renounced righ
Slide 12: Current Trading Conditions
Current Trading Conditions For personal use only • Local regional markets still recovering from natural disasters • National markets softened in April & May driven by “choppy” environments in retail, government and auto sectors • 11 performing consistently – rating alongside 7mate & GO • One improvi
Slide 13: For further information, please contact
For personal use only For further information, please contact Rhys Holleran Chief Executive Officer Tel: +61 3 9922 2000 Steve Kelly Chief Financial Officer Tel: +61 3 9922 2000
Slide 14: SCM 2011 First Half Year Results
SCM 2011 First Half Year For personal use only Results • Revenue (reported) $218.7m 5.0% • Revenue (underlying) $224.4m 5.9% • EBITDA (underlying) $70.3m 10.9% • NPAT (underlying / reported) $33.6m 29.2% / 36.6% • EPS (underlying) 8.3 cps 69% • Net Debt to EBITDA (annualised) 1.8 : 1 10% • Interim d
Slide 15: Pro forma income statement
Pro forma income statement For personal use only LTM 31 Dec LTM 31 Dec LTM 31 Dec LTM 31 Dec 2010 Pro 2010 Pro 2010 Pro 2010 Pro LTM 31 forma Merged forma Merged forma Merged forma Merged LTM 31 LTM 31 Dec Group 100% Group 100% Group 50.1% Group 50.1% Dec 2010 Dec 2010 Maximum Maximum Maximum Maximu
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