Southern Cross Media Group Limited · ASX:SXL
Southern Cross Media — Macquarie Australia Conference 2016
17 slides from Southern Cross Media's conference presentation, May 5, 2016
Slide 1: ASX Release: Correction to Macquarie Conference Presentation
ASX RELEASE 5 MAY 2016 For personal use only CORRECTION SOUTHERN CROSS AUSTEREO INVESTOR PRESENTATION TO MACQUARIE AUSTRALIA CONFERENCE 2016 Please see attached a copy of the presentation being delivered by Grant Blackley to the 2016 Macquarie Australian Conference on Friday 6th May at 1.30pm. The a
Slide 2: Southern Cross Austereo Macquarie Australia Conference May 2016
For personal use only SOUTHERN CROSS AUSTEREO MACQUARIE AUSTRALIA CONFERENCE MAY 2016 PRESENTED BY GRANT BLACKLEY, CEO
Slide 3: Disclaimer
DISCLAIMER For personal use only Summary information The material in this presentation has been prepared by Southern Cross Media Group Limited ABN 91 116 024 536 (“Southern Cross Austereo” or “SCA”). The information in this presentation is of a general background nature and does not purport to be co
Slide 4: Australia's Biggest Entertainment Company
AUSTRALIA’S BIGGEST ENTERTAINMENT COMPANY For personal use only 10 million Australians reached every week 107 free to air television signals 78 radio stations across the nation + largest DAB+ spectrum owner in capital cities + strengthening national and local web, mobile and social assets HIT Networ
Slide 5: Capital Management
CAPITAL MANAGEMENT SCA has completed balance sheet repair process For personal use only • Over $200m debt repaid in last 18 Net Debt ($m) months 573 • Leverage ratio reduced to 506 473 c. 2.0 times EBITDA 368 • Dividend Reinvestment Plan suspended – resumption of full cash dividends Dec 14 Jun 15 De
Slide 6: Banking Covenants Significantly Improved
BANKING COVENANTS SIGNIFICANTLY IMPROVED For personal use only Leverage Ratio • Significant headroom following 3.95 3.5 3.75 3.75 3.50 $200 million debt reduction 3.45 2.95 2.84 2.60 3.12 2.45 2.05 1.95 Dec 2014 June 2015 Dec-15 Mar-16 Leverage Ratio Covenant Leverage Ratio Interest Cover Ratio • An
Slide 7: Market Dynamics – Growth of Metro Radio
MARKET DYNAMICS – GROWTH OF METRO RADIO For personal use only • Strong growth in metro radio advertising market • Competitive marketplace – strong industry attitude to growth • Radio is well marketed with clear messaging • Advertising drivers are stable with multiple categories performing well Metro
Slide 8: Significant Improvement in Metro Ratings
SIGNIFICANT IMPROVEMENT IN METRO RATINGS For personal use only 26.9 26.6 26.5 26.4 25.6 25.5 25.3 25.3 23.8 24.6 24.5 24.0 23.7 23.6 23.3 23.2 22.9 23.0 22.7 21.9 7:2013 8:2013 1:2014 2:2014 3:2014 4:2014 5:2014 6:2014 7:2014 8:2014 1:2015 2:2015 3:2015 4:2015 5:2015 6:2015 7:2015 8:2015 1:2016 2:20
Slide 9: Regional Radio – The Quiet Achiever
REGIONAL RADIO – THE QUIET ACHIEVER For personal use only • Regional Radio has long been a “staple in our diet” • Highly effective medium – high margin business with mid-single digit growth profile • Combination of Regional TV and Radio – creates a two-fold economic impact on local communities • Loc
Slide 10: Landmark Regional TV Affiliation with Nine
LANDMARK REGIONAL TV AFFILIATION WITH NINE For personal use only • 5 year affiliation agreement with Nine, commencing 1 July 2016 • Improved economic outcome • Southern NSW, Regional VIC and Regional QLD only • Aggregated 3 market value $470 million1 Reg • Nine programming has traditionally delivere
Slide 11: Affiliation with Nine Provides Opportunity to Unlock Further Value
AFFILIATION WITH NINE PROVIDES OPPORTUNITY TO UNLOCK FURTHER VALUE For personal use only Content Sales Operations • Strong content • Stronger revenue – via • Seamless National Nine alignment - NRL, Cricket, vastly improved ratings branding Nine News and Current • Collaborate with Nine • Back of hous
Slide 12: Outlook & Opportunities for Growth
OUTLOOK & OPPORTUNITIES FOR GROWTH For personal use only • EBITDA guidance for FY16 increased to $166m – $170m aided by licence fee reduction* • SCA is positioning assets for growth in FY17 • Investment in content and ideation • Audio market continues to perform strongly and provides opportunity for
Slide 13: Regional Media Has Untapped Potential
REGIONAL MEDIA HAS UNTAPPED POTENTIAL For personal use only Regional markets represent 36% of the population yet only receive 11 – 17% of media investment SCA and peers developing a research-led Regional Development Plan to identify specific opportunities for advertisers 12 Source: Roy Morgan p141 P
Slide 14: SCA – Clear Layered Sales Process
SCA – CLEAR LAYERED SALES PROCESS For personal use only Data analytics ACCOUNT Integrated solution selling and monetisation MANAGEMENT across radio, TV and digital DATA & OUR CUSTOMER OPERATIONS Insight led ideation, Business intelligence, REVENUE pitch to market, creative yield and inventory manage
Slide 15: Clear Goals – Structure – Vision
CLEAR GOALS – STRUCTURE - VISION For personal use only • “A” grade talent in all breakfast and drive formats Investment in • Be visible and engaging – market our brands more content • Lean on both our metro and regional networks to develop tomorrow’s stars • Digital producers added to each metro mar
Slide 16: Policy & Regulatory Affairs
POLICY & REGULATORY AFFAIRS For personal use only • Government announced 25% cut in TV and Radio licence fees • Government recognises that Australian broadcasters pay the Licence Fees highest fees in the world – pathway to further cuts to be discussed • Effective FY 2016 (subject to Budget approval)
Slide 17: Summary
SUMMARY For personal use only SCA well positioned for growth • Balance sheet strengthened following significant degearing • Metro market growing strongly and with continuing focus on further ratings improvement • Landmark affiliation deal with Nine provides revenue upside from FY17 • Refreshed execu
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