Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Shareholder Meeting (November 2020)
29 slides from Nine Entertainment's shareholder meeting presentation, Nov 12, 2020
Slide 1: Nine Annual General Meeting Presentation
NINE ANNUAL GENERAL MEETING PRESENTATION 12 November 2020: Attached is a copy of the presentation to be given at the Nine Entertainment Co. Holdings Limited (ASX: NEC) Annual General Meeting today. This announcement was authorised for lodgment by the Company Secretary of NEC. Further information: No
Slide 2: Annual General Meeting
ANNUAL GENERAL MEETING 12 NOVEMBER 2020
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This document is a presentation of general background looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, a promise, representation, warranty or guarantee as to the past, information about the activities of Nine Entertainment Co. ‘should’, ‘could’, ‘may
Slide 4: Chairman
Piel ek COSTELLO, AG
Slide 5: Chief Executive Officer
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Slide 6: Group Results
GROUP RESULTS GROUP LIKE BASIS GROUP DIVIDEND EBITDA EBITDA NPAT 1,2 7 CENTS, $397M 1 DOWN 16% $141M FULLY FRANKED FY20 FY20 FY19 A$M, CONTINUING BUSINESS BASIS VARIANCE REPORTED 1,2 EX AASB16/PPA 2 PRO FORMA 2 REVENUE 2,170.6 2,171.6 2,341.7 -7% GROUP EBITDA 396.7 354.6 423.8 -16% DEPRECIATION 149.
Slide 7: The Benefits of a Portfolio
THE BENEFITS OF A PORTFOLIO Investment in Business Growth Cost Savings in COVID-Impacted Divisions +85.0 +33.8 +20.0 Digital & Publishing Domain Corporate TV Radio +6.8 -4.9 Stan 9Now -7.9 -13.3 -15.0 -29.2 -32.8 -29.8 -48.6 -50.4 Revenue1 1 Costs -138.3 EBITDA Impact $M +51.2 +13.2 -89.6 -21.2 -17.
Slide 8: Pro Forma Combined Group Divisional Results
PRO FORMA COMBINED GROUP DIVISIONAL RESULTS Revenue1 contribution - FY20 FY20 DIGITAL & TOTAL BROADCASTING DOMAIN STAN CORPORATE ASSOCIATES INTERSEGMENT CONTINUING $M PUBLISHING BUSINESS REVENUE 1,136.0 525.2 261.6 242.2 14.2 - (14.9) 2,170.6 PCP 1,283.5 575.6 292.4 157.1 19.1 - (29.2) 2,341.7 % CHG
Slide 9: Digital Transformation - Accelerating EBITDA Growth
DIGITAL TRANSFORMATION - ACCELERATING EBITDA1 GROWTH 450 400 350 300 250 200 150 ~48% OF 100 +40% OR ~$47M TOTAL EBITDA2 50 0 FY18 FY19 FY20 Domain - digital only Digital ex Domain Non-Digital 1 Digital includes 9Now, 9Digital, Stan and the digital components of Domain (59%) and Metro Media, as owne
Slide 10: Trading Update and Outlook
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Slide 11: Advertising Markets Recovering
ADVERTISING MARKETS RECOVERING % chg on pcp 40.0% 30.0% 20.0% 10.0% 0.0% January February March April May June July August September October November December (est) (est) -10.0% -20.0% -30.0% -40.0% -50.0% FTA Nine 10
Slide 12: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK BROADCAST 9NOW METRO MEDIA STAN DOMAIN1 FTA market conditions BVOD market continues Growing digital and Expect positive subscriber Trading in first 4 months of markedly improved with to grow with Q1>+40%. subscription base (H1 momentum to continue, FY21 improved on FY20 Ni
Slide 13: Much Has Been Achieved Over the Past 5 Years
MUCH HAS BEEN ACHIEVED OVER THE PAST 5 YEARS Pre 2018 2018-2019 2020-> Focus on premium video M&A for scale, consolidation of Integration and news and control of Stan optimisation • Operating discipline • Demographic focus in FTA on • Merger with Fairfax and • Acceleration of digital 25-54s consolid
Slide 14: Three Key Operating Platforms
THREE KEY OPERATING PLATFORMS TELEVISION PUBLISHING CLASSIFIEDS Investing in the premium content that Cross platform publisher of digital Customer-centric, market-place model drives profitability content, primarily news Focus on differentiation through Focusing on the efficient, and digital Focusing
Slide 15: By FY24, Nine Is Focussed on Achieving
BY FY24, NINE IS FOCUSSED ON ACHIEVING ~$230M > 60% >35% ~30% Structural (P&L) cost out Of EBITDA1 from Of group revenues1 Of Nine’s revenue1 from FY19 (net across digital businesses from subscription from VOD FTA, Radio and Metro Media) 1 Includes 59% of Domain revenue and EBITDA, excludes corporat
Slide 16: Formal Business
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Slide 17: Item 1. Financial Report
ITEM 1. FINANCIAL REPORT To receive and consider the Financial Report of the Company for the year ended 30 June 2020, together with the Directors’ Report and the Auditor’s Report as set out in the Annual Report. Note: There is no voting applicable to this item of business 16
Slide 18: Resolution 1. Adoption of the Remuneration Report
RESOLUTION 1. ADOPTION OF THE REMUNERATON REPORT To consider and, if thought fit, pass the Resolution as a non-binding resolution: “That the Remuneration Report for the year ended 30 June 2020 as set out in the Annual Report be adopted.” Note: The vote on this Resolution is advisory only and does no
Slide 19: Resolution 1. Adoption of the Remuneration Report
RESOLUTION 1. ADOPTION OF THE REMUNERATON REPORT Proxy & Direct Vote Count Number Percentage For 1,401,084,793 99.65% Against 4,029,112 0.29% Open 936,289 0.07% Open Proxies held by Board 619,229 0.05% % defined as % of Total Valid Available Votes, total may not add due to rounding 18
Slide 20: Resolution 2. Re-election of Mr Peter Costello as a Director
RESOLUTION 2. RE-ELECTION OF MR PETER COSTELLO AS A DIRECTOR To consider and, if thought fit, pass the Resolution as an ordinary resolution: “To re-elect Mr Peter Costello, who retires in accordance with clause 26.10 of the Constitution and offers himself for re-election, as a Director.” Note: The B
Slide 21: Resolution 2. Re-election of Mr Peter Costello as a Director
RESOLUTION 2. RE-ELECTION OF MR PETER COSTELLO AS A DIRECTOR Proxy & Direct Vote Count Number Percentage For 1,390,991,447 98.86% Against 15,125,633 1.07% Open 957,327 0.07% Open Proxies held by Board 635,849 0.05% % defined as % of Total Valid Available Votes, total may not add due to rounding 20
Slide 22: Resolution 3. Grant of Additional 2020 Performance Rights to the CEO
RESOLUTION 3. GRANT OF ADDITIONAL 2020 PERFORMANCE RIGHTS TO THE CEO To consider and, if thought fit, pass the Resolution as an ordinary resolution: “To approve for all purposes the grant of 292,118 performance rights to the Chief Executive Officer, Mr Hugh Marks, as described in the Explanatory Sta
Slide 23: Resolution 3. Grant of Additional 2020 Performance Rights to the CEO
RESOLUTION 3. GRANT OF ADDITIONAL 2020 PERFORMANCE RIGHTS TO THE CEO Proxy & Direct Vote Count Number Percentage For 1,296,156,298 92.11% Against 110,139,385 7.83% Open 850,416 0.06% Open Proxies held by Board 533,668 0.04% % defined as % of Total Valid Available Votes, total may not add due to roun
Slide 24: Resolution 4. Grant of 2021 Performance Rights to the CEO
RESOLUTION 4. GRANT OF 2021 PERFORMANCE RIGHTS TO THE CEO To consider and, if thought fit, pass the Resolution as an ordinary resolution: “To approve for all purposes the grant of 1,156,026 performance rights to the Chief Executive Officer, Mr Hugh Marks, as described in the Explanatory Statement.’”
Slide 25: Resolution 4. Grant of 2021 Performance Rights to the CEO
RESOLUTION 4. GRANT OF 2021 PERFORMANCE RIGHTS TO THE CEO Proxy & Direct Vote Count Number Percentage For 1,304,053,904 92.67% Against 102,277,541 7.27% Open 850,416 0.06% Open Proxies held by Board 533,668 0.04% % defined as % of Total Valid Available Votes, total may not add due to rounding 24
Slide 26: Resolution 5. Variation to Constitution
RESOLUTION 5. VARIATION TO CONSTITUTION To consider and, if thought fit, pass the Resolution as a special resolution: “To approve a variation to the Company’s constitution under section 136(2) of the Corporations Act as a special resolution by including new rule 22.12 Direct Voting” as explained ful
Slide 27: Resolution 5. Variation to Constitution
RESOLUTION 5. VARIATION TO CONSTITUTION Proxy & Direct Vote Count Number Percentage For 1,404,310,424 99.83% Against 1,065,105 0.08% Open 1,206,126 0.09% Open Proxies held by Board 923,764 0.07% % defined as % of Total Valid Available Votes, total may not add due to rounding 26
Slide 28: Summary of Proxy & Direct Vote Positions
SUMMARY OF PROXY & DRECT VOTE POSITIONS PROXY & DIRECT VOTE RESOLUTION 1. RESOLUTION 2. RESOLUTION 3. RESOLUTION 4. RESOLUTION 5. COUNT REMUNERATION PETER COSTELLO ADDITIONAL 2020 2021 VARIATION TO REPORT PERFORMANCE PERFORMANCE CONSTITUTION RIGHTS RIGHTS For 99.65% 98.86% 92.11% 92.67% 99.83% Again
Slide 29: Annual General Meeting Q&A
| :Nine ANNUAL GENERAL MEETING Q&A
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