Slide 1: H1 2016 Results Presentation
H1 2016 RESULTS PRESENTATION 23 AUGUST 2016
Slide 2: Contents
CONTENTS 01 Highlights 02 Business Strategy 03 Operational Highlights 04 Financial Performance 05 Guidance 06 Questions A Appendix STRICTLY CONFIDENTIAL 2 2
Slide 3: Highlights
HIGHLIGHTS »
Slide 4: H1 2016 Highlights
H1 2016 HIGHLIGHTS REVENUE AND 21,000+ SIGNS LONG TERM STRATEGIC REAFFIRM FULL PROFIT UP INCLUDING DIVERSIFIED ACQUISITIONS YEAR EARNINGS PORTFOLIO GUIDANCE 6,000+ DIGITALS STRICTLY CONFIDENTIAL 4 4
Slide 5: H1 2016 Highlights: Revenue, EBITDA, NPATA
H1 2016 HIGHLIGHTS REVENUE EBITDA NPATA 170 ($M) 0.4 ($M) 16 ($M) 1.5 1 160 0.2 14 0.5 30 0.5 150 0 12 0.3 0 Revenue EBITDA NPAT 34.8% 140 18.2% -0.2 25 32.7% 10 ; 11.4 -0.5 146.6 26.8 0.1 130 -0.4 8 -1 6.1% 20 123.0% 51.4% -0.1 8.5 -1.5 120 124.1 -0.6 20.2 6 116.9 15 -2 110 -0.8 -0.3 4 -2.5 1
Slide 6: Business Strategy
l ab BUSINESS STRATEGY 2
Slide 7: Australia's Leading OOH Network
AUSTRALIA’S LEADING OOH NETWORK • Out Of Home audiences continue to increase - organic and via investment in digital 21,000+ Signs • Traditional advertising sector is being incl 6,000+ Digital disrupted - Out Of Home and oOh! at the forefront 130+ Large Format Road 41 Retail 55 Fly 36 • Improving au
Slide 8: The Portfolio
THE PORTFOLIO STRICTLY CONFIDENTIAL 8 8
Slide 9: Strategy Sets Platform for Growth
STRATEGY SETS STRATEGY FORPLATFORM GROWTH FOR GROWTH DIVERSITY OF STRONG END-TO-END DEVELOPING AUDIENCE & PRODUCT + MATURITY PROFILE + DIGITAL STRATEGY + MARKET LEADERS = BUILDING VALUE • Most diverse • Balanced, long • 6,000+ digital • Developing • Revenue of $146.6m, product portfolio of term site
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 11: Operational Highlights: Digital Expansion, Acquisitions, Contracts
OPERATIONAL HIGHLIGHTS DIGITAL EXPANSION • 7 new Road large format billboards in H1 2016, with 8 more since 1 July 2016 • 11 new Retail Evoke large format banners in H1 2016 across ANZ, with 12 more since 1 July 2016 • 2 new Fly large format banners since 1 July 2016 including 360° ‘Halo’, Melbourne
Slide 12: Operational Highlights: Content & Data, Growing Audience
OPERATIONAL HIGHLIGHTS CONTENT & DATA • 8 owned online platforms including Hijacked, ShortPress and Junkee • Linking of physical, online, social and social media platforms • Native content converting integrated campaign opportunities • Exclusive Out Of Home relationship with Quantium GROWING AUDIENC
Slide 13: H1 2016 Digital Highlights
H1 2016 DIGITAL HIGHLIGHTS DIGITAL REVENUE AS % TOTAL REVENUE • Digital assets close to 3x on prior corresponding period 180.0 H1 2016 50.0% • 6,000+ digital assets in network (up from 2,100 at end H1 160.0 44.5% 40.0% 2015) 140.0 30.0% DIGITAL REVENUE 31.9% 120.0 20.0% 100.0 23.0% 89.3 $65 MILLION
Slide 14: Leading Digital Market Position
LEADING DIGITAL MARKET POSITION oOh!media’s leading ANZ digital network and reach - 6,000+ digital signs and online platforms +40 +1,550 +240 +4,200 8 Road side digital digital screens in internal Fly digital Locate by oOh! owned online screens and growing Retail environments panels CBD, gym, uni, c
Slide 15: Digital Innovation
DIGITAL INNOVATION LOCATION Bourke Street Mall, Melbourne Campaign Bonds ‘The Boys’ Campaign Woolworths ‘Pokemon Go Lure’ Innovation Full motion creative changes via live weather feed Innovation Digital immediacy used to make Outcome Increased audience engagement via relevant message delivered at ri
Slide 16: Financial Performance
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Slide 17: Summary Financial Information H1 2016 vs H1 2015
SUMMARY FINANCIAL INFORMATION H1 2016 VS H1 2015 ($m) H1 2016 H1 2015 CHANGE % REVENUE 146.6 124.1 18.2% EBITDA 26.8 20.2 32.7% ADJUSTED NPAT(1) 11.4 8.5 34.8% ADJUSTED EPS(1) 7.6 5.7 33.3% (CENTS PER SHARE) INTERIM DIVIDEND (CENTS PER SHARE, FULLY 4.0 2.8 42.9% FRANKED) NET DEBT/EBITDA 1.7x 1.3x (3
Slide 18: Full Profit and Loss
FULL PROFIT AND LOSS $m H1 2016 H1 2015 Change % • Strong underlying revenue growth Revenue 146.6 124.1 18.2% • Gross profit increase of 40.0%, gross Cost of media sites and production (86.5) (81.1) (6.7%) profit margin up 6.4% (digital revenue and product mix) Gross profit 60.1 43.0 40.0% • EBITDA
Slide 19: Revenue by Product
REVENUE BY PRODUCT 2.7% $m H1 2016 H1 2015 Change % 9.1% Road 56.8 50.4 12.9% 38.8% 18.1% Revenue by Retail 45.9 40.6 13.1% product as % Fly 26.5 26.2 1.1% Locate by oOh! (formerly 31.3% 13.4 4.8 178.7% Place) • All products contributing to revenue growth New Zealand 4.0 2.0 94.3% • Fly strong under
Slide 20: Balance Sheet and Credit Ratios
BALANCE SHEET AND CREDIT RATIOS $m 30 Jun 16 31 Dec 2015 Change % • Strong balance sheet position to Cash and cash equivalents 9.7 18.5 (47.8%) support future growth initiatives Trade and other receivables 74.7 60.1 24.3% • Trade receivable increase of 24.3% Other current assets 7.6 6.6 15.3% attrib
Slide 21: Net Debt Reconciliation
NET DEBT RECONCILIATION • $21.8m movement in Net debt in H1 ($m) 2016 due to: 110 2.0 o Strong EBITDA contribution 100 10.0 o Growth in working capital from strong revenue and the timing of the double lunar billings at June quarter end 90 13.4 o Tax payment for CY 2015 2.4 80 o Interest in ordinary
Slide 22: Cash Flow
CASH FLOW $m H1 2016 H1 2015 Variance • Compared to CY 2015, cash conversion has softened, due to: EBITDA 26.8 20.2 6.6 o Tax payments that were not represented in the prior period Interest and income tax (12.3) (1.7) (10.6) o An increase in working capital from strong Net change in working capital
Slide 23: Guidance
GUIDANCE
Slide 24: Guidance: Reaffirm Full Year Guidance
GUIDANCE 1 Reaffirm Full Year Guidance • Reaffirm EBITDA guidance of between $68.0 - $72.0m • Revised upper range of capex guidance from $25.0m up to $35.0m to accelerate opportunities for digital asset conversions 2 Board confirms full year dividend payout ratio 40%-60% NPATA STRICTLY CONFIDENTIAL
Slide 25: Questions
QUESTIONS
Slide 26: Appendix
APPENDIX
Slide 27: Financial Information Notice
FINANCIAL INFORMATION NOTICE Pro forma financial information oOh!media uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are referred to as non-IFRS financial information. oOh!media considers that this non-IFRS fi
Slide 28: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important notice and disclaimer This document is a presentation of general background information about the activities of oOh!media Limited (oOh!media) current at the date of the presentation, 23 August 2016. The information contained in this presentation is of genera