Ooh Media Ltd · ASX:OML
Ooh Media — FY2022 Earnings Presentation
38 slides from Ooh Media's earnings presentation, Feb 20, 2023
Slide 1: Full Year Results Presentation
oOh!media Limited ABN 69 602 195 380 20 February 2023 ASX Release FULL YEAR RESULTS PRESENTATION oOh!media Limited (ASX:OML) (oOh! or Company) in accordance with ASX Listing Rules attaches the 2022 Full Year presentation. This announcement has been authorised for release to the ASX by the Chief Exec
Slide 2: CY 2022 Results
CY 2022 Results 20 February 2023
Slide 3: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Chris Roberts (CFO) • CEO Overview • CY 2022 Highlights • Financial results • Leading the market • Lease maturity profile • Outlook • Questions • Appendix 2
Slide 4: CEO Overview
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Slide 5: Out of Home markedly gaining share
Out of Home markedly gaining share OMA projecting Out Of Home Revenue CAGR of 9% CAGR to 20261 • OMA reported net revenue growth in CY22 of 28% on the prior year, with CY22 net media revenues of $1.06 billion returning to pre-COVID CY19 levels • Out Of Home captured 12.4% of the agency media spend d
Slide 6: CY 2022 Highlights
CY 2022 Highlights 5 5
Slide 7: CY 2022 Highlights
CY 2022 Highlights Leveraged revenue growth to strong Adjusted NPAT • Revenues of $592.6M (up 18% on the prior year) with Road and Retail above 2019, and Fly rapidly building • Adjusted Underlying EBITDA of $127.1M, increasing by 64%, and Adjusted NPAT of $56.2M, increasing by 343% Focus on deliveri
Slide 8: CY 2022 Key Financials
CY 2022 Key Financials Operating leverage delivering 64% growth in Adjusted Underlying EBITDA and 343% growth in Adjusted NPAT on the prior year KEY PERFORMANCE METRICS1 STATUTORY METRICS1 Revenue Gross Profit 18% 14% $592.6M $422.8M Adjusted Gross Opex Margin2 2.2 ppts 2% $136.9M 46.2% Adjusted EBI
Slide 9: Strong growth in Road drives revenue up 18%
Strong growth in Road drives revenue up 18% Fly also strengthening over the year, with second half revenue up 78% on the first half • +18% revenue growth, with Road continuing Change CY 2022 CY 2021 1H22 % 2H22 % CY22 % strong performance and aviation audiences Formats1 % vs ($M) ($M) vs pcp vs pcp
Slide 10: Financial Results
Financial Results 9
Slide 11: Adjusted v Statutory Results
Adjusted v Statutory Results Underlying growth significantly stronger than statutory result Adjusted Financials Reported Financials 592.6 503.7 18% 592.6 18% 503.7 14% 422.8 370.3 23% 274.0 222.0 236.3 21% 285.9 77.6 64% 127.1 CY 2021 $M CY 2022 $M CY 2021 $M CY 2022 $M Adjusted Underlying EBITDA Gr
Slide 12: Strong operating leverage delivers adjusted NPAT of $56.2M
Strong operating leverage delivers adjusted NPAT of $56.2M Adjusted NPAT up $3.9M or 7% on CY 2019 ADJUSTED P&L1 CY 2022 ($M) CY 2021 ($M) Change ($M) • oOh! delivered a significant improvement in profitability, with adjusted NPAT for CY22 increasing by $43.5M or 343% to $56.2M, resulting from a foc
Slide 13: Reported NPAT up $42M
Reported NPAT up $42M REPORTED P&L CY 2022 ($M) CY 2021 ($M) Change ($M) Revenue 592.6 503.7 88.9 Cost of media sites and production (169.9) (133.4) (36.5) Gross profit 422.8 370.3 52.5 • NPAT grew by 406% in CY22 to $31.5M Gross profit margin (%) 71.3% 73.5% (2.2 ppts) • Gross profit margin decline
Slide 14: Net rent abatements down 72%
Net rent abatements down 72% $10M2 in net rent abatements received by format • All CY 2022 net rent abatements were in the audience and revenue impacted Airport and Rail environments • CY 2022 abatements of $10M compared to $37M in CY 2021 due to improved audience and revenue in Fly, and 3.7 change
Slide 15: Free cash flow increases by $18M from earnings growth
Free cash flow increases by $18M from earnings growth Cash flows1 CY 2022 ($M) CY 2021 ($M) Change ($M) Adjusted EBITDA 127.1 81.3 45.8 Net change in working capital and (14.9) (0.3) (14.6) • Free cash inflows of $68.6M, with operating cash flows 76.7% of EBITDA non-cash items Interest and tax paid
Slide 16: Strong balance sheet with gearing at 0.3x
Strong balance sheet with gearing at 0.3x • Strong cash generation from improved earnings and lower Balance sheet1 31 Dec 2022 ($M) 31 Dec 2021 ($m) Change ($m) capex versus long term levels have further reduced net debt by 48% and gearing to 0.3x Cash and cash equivalents 40.0 60.0 (20.0) Trade and
Slide 17: Leading the market
Leading the market 16
Slide 18: Make it easy for our customers to achieve better outcomes
1 3 Make it easy for our Lead Out of Home to customers to achieve better a digital first future outcomes 2 Capture audience attention in public spaces at scale 17
Slide 19: oOh!media leads the Out of Home sector
oOh!media leads the Out of Home sector Industry-leading Outfront Investments and renewals Driving higher ROI for customers New initiatives to grow the reach and Pipeline of new tenders and concessions • Major study ‘How Aussies Move’ to be demonstrate the power of Out of Home’s expected to be awarde
Slide 20: Launch of ESG: Impact where it matters
Launch of ESG: Impact where it matters Impact where it matters Impact where it matters Impact where it matters for for our planet for people better business Adapting what we do to have Creating the best Being transparent and a sustainable impact on public spaces environment for our people, accountab
Slide 21: Reduce our emissions
Our Approach Reduce our emissions Transition to renewables Use offsets as a last resort 20
Slide 22: Lease Maturity Profile
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Slide 23: Balanced commercial lease profile
Balanced commercial lease profile The diversity of oOh!’s portfolio is a key component of its commercial strategy Adjusted Revenue1 Maturity Profile 300.0 50.0% 44.7% 45.0% • $44M or 8% of CY22 revenue relates to contracts that have 250.0 40.0% already expired and are in holdover. This revenue is in
Slide 24: Outlook
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Slide 25: Outlook
Outlook Q1 continuing Out of Home growth momentum • Out Of Home expected to continue to take share from other media • Total Q1 2023 revenues currently pacing +8% higher than Q1 2022 at this time last year, with Road and Fly continuing strong momentum from CY22 and pacing at double digit growth. Febr
Slide 26: Wrap Up
Wrap Up oOh! Set for growth Out Of Home fundamentals remain oOh! focused on delivering strategy strong • Lead Out of Home to • OOH revenue share continuing to a digital first future take share from other media • Capture audience attention in • Growth driven by MOVE and public spaces at scale digital
Slide 27: Questions
Questions 26
Slide 28: Appendix
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Slide 29: Advertising category performance - SMI
Advertising category performance - SMI1 2022 SMI category share for Out of Home SMI Agency Spend 2022 Pacing vs 2019 -60% -40% -20% 0% 20% 40% 60% 80% 100% 120% 8% Retail Retail 7% Government Automotive Brand Alcoholic Beverages 6% In Home Entertainment Insurance 42% Food/Produce/Dairy 6% Government
Slide 30: Revenue by quarter 2019-2022
Revenue by quarter 2019-2022 250.0 200.0 150.0 $M 100.0 50.0 - Q1 Q2 Q3 Q4 2019 2020 2021 2022 29
Slide 31: COGS bridge
3M 400.0 380.0 360.0 340.0 320.0 300.0 280.0 260.0 240.0 220.0 200.0 COGS bridge Adjusted COGS CY 2021 Net rent abatements 2021 Rebaselined cost 25.7 Revenue impact on var costs Escolators on fixed rent (16.2) Loss of Sydney Trains (10.2) Netrent abatement 2022 a 318.6 (48) Other COGS CY 2022 30 coh
Slide 32: Opex bridge
$M Opex bridge 150.0 148.0 146.0 144.0 142.0 140.0 138.0 136.0 134.0 132.0 130.0 One, Y 144.5 021 2.5 (0.7) (08) Pe 146.9 43 _ 140.2 a | i; Junkee Media divestment Reba: Inflation lined cost _____ One-off emplayee cost 31 Increase in TRE Lower office rent expense Wiki Other Opex CY 2022 coh! unmissa
Slide 33: Reported NPAT to Adjusted NPAT reconciliation
Reported NPAT to Adjusted NPAT reconciliation CY 2022 CY 2021 Change 1 ($M) ($M) ($m) Reported NPAT 31.5 (10.3) 41.8 Other income & non-operating items: Other income & non-operating items (2.1) (4.0) 1.9 Tax effect of other income and non- 0.6 1.2 (0.6) operating items AASB 16 income and expense ite
Slide 34: CY 2022 vs CY 2019
CY 2022 vs CY 2019 REPORTED P&L CY 2022 ($M) CY 2019 ($M) Change ($M) Revenue 592.6 649.6 (57.0) Cost of media sites and production (169.9) (184.8) 14.9 Gross profit 422.8 464.8 (42.0) Gross profit margin (%) 71.3% 71.6% (0.2 ppts) Total operating expenditure2 (136.9) (137.5) 0.7 Underlying EBITDA 2
Slide 35: Adjusted vs Reported Results Reconciliation
Adjusted vs Reported Results Reconciliation Key changes: EBITDA increase of $161M offset by ▪ Depreciation and amortisation has increased CY 2022 CY 2022 Change 1 P&L a Depreciation and Amortisation increase of by circa $144M due to the adoption of ADJUSTED ($M) REPORTED ($M) ($m) $144M and an Inter
Slide 36: Financial information notice
Financial information notice Glossary EBIT Earnings before interest and tax oOh!’s Financial Statements for the year ended 31 December 2022 presented in accordance with Australian Accounting Standards. EBITDA Earnings before interest, tax, depreciation and amortisation oOh!media has also chosen to i
Slide 37: Financial information notice
Financial Financialinformation notice information notice This document is a presentation of general background information about the activities of Forward looking statements are provided as a general guide only, and should not be relied on as oOh!media Limited (oOh!media or oOh!) current at the date
Slide 38: Office locations
Sydney T +61 (2) 9927 5555 Level 2, 73 Miller Street North Sydney NSW 2060 Melbourne T +61 (3) 8598 0700 Level 3, 101 Moray Street South Melbourne VIC 3205 Brisbane T +61 (7)3620 2900 56 Doggett Street Newstead QLD 4006 Adelaide T +61(8)8367 3222 84 Frome Street Adelaide SA 5000 Perth T +61 (8)6160