Siriusxm Holdings Inc. · NASDAQ:SIRI
Siriusxm — Shareholder Meeting (May 2014)
30 slides from Siriusxm's shareholder meeting presentation, May 19, 2014
Slide 1: Annual Stockholder Meeting May 19, 2014
Annual Stockholder Meeting May 19, 2014
Slide 2: Disclaimer on Forward-Looking Statements
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
Slide 3: Disclaimer on Forward-Looking Statements
DISCLAIMER ON FORWARD - LOOKING STATEMENTS 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 incre
Slide 4: Competitive Strengths
• Large subscriber base with consistent and predictable cash flows • Complete in - car service provider: audio, traffic and connected vehicle services • Satellite delivery system with seamless continental U.S. coverage • Over 140 channels of curated, commercial free music, talk , news and sports con
Slide 5: Continued Subscriber Growth
2009 2010 2011 2012 2013 2014E 18.8 20.2 21.9 23.9 25.6 ~26.8 CONTINUED SUBSCRIBER GROWTH (millions)
Slide 6: Multi-Year Revenue Growth
MULTI - YEAR REVENUE GROWTH ($ billions ) 2009 2010 2011 2012 2013 2014E $2.5 $2.8 $3.0 $3.4 $3.8 >$4.0
Slide 7: Strong Adj. EBITDA Growth
STRONG ADJ. EBITDA GROWTH ($ millions) 2009 2010 2011 2012 2013 2014E $463 $626 $731 $920 $1,166 ~$1,380
Slide 8: Significant FCF Growth
SIGNIFICANT FCF GROWTH ($ millions) 2009 2010 2011 2012 2013 2014E $185 $210 $416 $709 $927 $1,100 Approaching
Slide 9: First Quarter 2014 Key Metrics
FIRST QUARTER 2014 KEY METRICS ($ millions) 1Q13 1Q14 % change Churn rate 2.0% 1.9% - 10 bp Subscribers 24.4 mm 25.8 mm +6% Revenue $897 $998 +11% Adj. EBITDA $262 $335 +28% FCF $142 $223 +56% FCF/Share $0.022 $0.036 +64%
Slide 10: New Auto Sales Trends
NEW AUTO SALES TRENDS (millions) Source: Based on external industry estimates of 2007 - 19 new vehicle automotive sales. Represents factory and port installs only. 33% 46% 56% 63% 67% 66% 69% 16.1 13.2 10.4 11.6 12.7 14.5 15.5 16.1 16.5 16.7 16.7 16.5 16.5 Penetration Rate Total Auto Sales
Slide 11: SiriusXM-Enabled Vehicles in Operation to Double in 5 Years
0 20 40 60 80 100 120 140 SIRIUSXM - ENABLED VEHICLES IN OPERATION TO DOUBLE IN 5 YEARS ( millions ) Source: Company estimates based on external industry estimates of 2014 - 19 automotive sales
Slide 12: Direct-to-Dealer Pre-Owned Program Ramp
DIRECT - TO - DEALER PRE - OWNED PROGRAM RAMP 2010 2011 2012 2013 1Q14 100 3,700 8,100 11,200 12,100 Participating Dealer Locations
Slide 13: Unique, Compelling Programming
• New, Renewed, Relaunched Brands: NBA , MLB, Fox News, Entertainment Weekly, Comedy Central, PGA TOUR, Rural Radio, Wharton’s Business Radio • Pop - Ups: Billy Joel, David Bowie and Tom Petty • New music channels in development • Town Halls with Eminem, Lady Gaga, Katy Perry and Billy Joel • Live C
Slide 14: SiriusXM Connected Vehicle
• Leading in - vehicle infotainment company and provider of next generation connected vehicle services • G lobal service opportunities • Expanding OEM rollout • End - to - end experience for OEM and consumer • $100 million in revenue, projected to double over 3 years SIRIUSXM CONNECTED VEHICLE
Slide 15: SiriusXM Is the Largest Radio Company
SIRIUSXM IS THE LARGEST RADIO COMPANY ($ billions) $0.6 $1.0 $ 3.1 $ 3.8 Pandora SiriusXM Clear Channel Radio Cumulus 2013 Revenue Source: Based on company filings
Slide 16: SiriusXM's Superior Revenue Model
SIRIUSXM’s SUPERIOR REVENUE MODEL Based on 2013 Revenue Source: Based on company filings Clear Channel $ 12/ Listener SiriusXM $ 149/ Subscriber Pandora $8/ Active Listener
Slide 17: Streaming's Crowded Field
a STREAMING’S CROWDED FIELD +tunein Cbs Ty Google music amazon Youti) ay vevo ea @ CLEARCHANNEL iTunes Radio GD crnceos gy O_ @ rdio = O CUMULUS ene
Slide 18: Free Music Attracts Listeners
FREE MUSIC ATTRACTS LISTENERS • iTunes Radio: over 20 million users • Spotify: over 24 million active listeners • iHeartRadio : over 40 million registered users • Pandora: 76 million active listeners • YouTube: world’s biggest music streaming service • AM/FM Radio: over 200 million weekly listeners
Slide 19: Paying Subscribers of Select Digital Music Services
PAYING SUBSCRIBERS OF SELECT DIGITAL MUSIC SERVICES ~6 mm ~3.5 mm ~1.7 mm Rhapsody SiriusXM Pandora Spotify 25.8 mm NOTE: SiriusXM as of 1Q14; Pandora as of year - end 2013. Total Spotify subscribers numbers are global as of 3/31/14. Rhapsody numbers from company announcement in April 2014
Slide 20: SiriusXM's Value Drivers
• Long - term growth prospects • Enabled vehicles 60m → 120m by end of 2019 • Strong business model • Unbeatable content + ease of use • Steady fixed costs • High variable margins • Low c apex and taxes • Strong free cash flow enabling return of capital SIRIUSXM’S VALUE DRIVERS
Slide 21: Best Margins in Media
BEST MARGINS IN MEDIA 2013 EBITDA Margins Reflects SiriusXM’s Adjusted EBITDA and 2014 projections; Source for others: Bloomberg 6% 20% 25% 27% 31% 33% 34% ~34% 40%
Slide 22: Media Businesses FCF as a % of EBITDA
MEDIA BUSINESSES FCF AS A % OF EBITDA n/a 11% 12% 26% 32% 36% 80% 2013 FCF / EBITDA Reflects SiriusXM’s FCF/Adjusted EBITDA; Source for others: Bloomberg
Slide 23: Leverageable Balance Sheet
LEVERAGEABLE BALANCE SHEET (Debt/Adj. EBITDA ) 6.7x 5.1x 4.1x 2.7x 3.1x 4.0x
Slide 24: Capital Return Program
CAPITAL RETURN PROGRAM • $4 billion common stock repurchase authorization • 678 million shares repurchased for $2.3 billion since 2013 • Buyback resumed following a pause during the Liberty process • Completed repurchase of $ 500 million of stock from Liberty Media in April • $1.7 mm remaining under
Slide 25: 2014 Priorities
2014 PRIORITIES • Win in the connected c ar • Deliver on the second o wner o pportunity • Lead in audio e ntertainment p rogramming • Improve customer s ervice and s atisfaction • Continue to innovate Fundamentally, it’s a ll a bout e xecution!
Slide 26: Appendix: Reconciliation
Appendix: Reconciliation
Slide 27: Reconciliation for SiriusXM
RECONCILIATION FOR SIRIUSXM Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 FY2009 FY2010 FY 2011 FY 2012 FY 2013 As Reported Total Revenue 897,398 940,110 961,509 1,000,078 997,711 2,472,638 2,816,992 3,014,524 3,402,040 3,799,095 Purchase Price Accounting Adjustments 1,813 1,813 1,813 1,813 1,813 54,065 2
Slide 28: Reconciliation for SiriusXM
RECONCILIATION FOR SIRIUSXM Unaudited For the Year Ended December 31, 2013 2012 2011 2010 2009 Cash Flow information Net cash provided by operating activities $1,102,832 $806,765 $543,630 $512,895 $433,830 Net cash used in investing activities $(700,688) $(97,319) $(127,888) $(302,414) $(248,511) Ne
Slide 29: Reconciliation for SiriusXM
RECONCILIATION FOR SIRIUSXM Unaudited For the Three Months Ended March 31, 2014 2013 Cash Flow information Net cash provided by operating activities $251,390 $168,915 Net cash used in investing activities $(27,457) $(26,434) Net cash used in financing activities $(237,567) $(456,699) Free Cash Flow
Slide 30: ((‘Siriusxm)))
((‘Siriusxm)))