Sinclair, Inc. · NASDAQ:SBGI

Sinclair — Sinclair Broadcast Group — Deutsche Bank Conference 2015

21 slides from Sinclair's conference presentation, Mar 9, 2015

  1. Slide 1: Conference, March 9, 2015

    VOL ATS BROWDGAS RC CONFERENCE March 9, 2015

  2. Slide 2: Safe Harbor

    SAFE HARBOR The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not

  3. Slide 3: Sinclair Broadcast Group – Who We Are

    Sinclair Broadcast Group – Who We Are Ticker: SBGI Market Cap: $2.7B Enterprise Value: $6.6B Largest broadcaster & leading consolidator  79 markets  376 channels Diversified asset base  Geographically  Content offerings  Distribution platforms

  4. Slide 4: Sinclair Broadcast Group – Who We Are

    Sinclair Broadcast Group – Who We Are Content company Paid/DR Local 4%  Affiliated with all major networks Sports Syndicate  Largest producer of local news 8% 30%  Growing sports franchise Content Revenue Multi-platform distributor Local News Mix  Over-the-air 30%  Digital  Cable channel  Rad

  5. Slide 5: We Are the Only Broadcaster with Scale & Reach

    WE ARE THE ONLY BROADCASTER WITH SCALE & REACH Owned and Operated Television Stations 162 108 75 75 53 46 42 34 30 29 27 28 17 8 SBGI Nexstar Gray MEG Raycom Gannett Tribune Scripps/Jrn CBS Hearst FOX NBC Meredith ABC U.S. TV Households Reached 44% 38% 38% 37% 30% 27% 23% 23% 18% 18% 16% 13% 11% 7%

  6. Slide 6: Multiple Revenue Streams Driving Cash Flow & Reducing Volatility

    MULTIPLE REVENUE STREAMS DRIVING CASH FLOW & REDUCING VOLATILITY Volatility of Revenue Stream Long Term Growth Potential Cash Flow TV Advertising GDP + Political every 2 years Medium Retransmission Fees 300% Low 75% of subscriber base renews in next 15 months Digital (web, social, apps) 9%1 (low est

  7. Slide 7: We Offer Compelling Content

    WE OFFER COMPELLING CONTENT … Sinclair Local News Content Sinclair Sports Content 2,000 hours per week College, High School, Wrestling Network Content Syndicated Content

  8. Slide 8: Attracting Mass Audiences

    …ATTRACTING MASS AUDIENCES BIGGER THAN ANY CABLE NEWS 512,686 Morning News 499,262 Evening News May ‘14, A25-54 May ‘14, A25-54 6x 5x 14x 15x 17x 15x 87,597 66x 94,789 53x 35,645 35,131 30,051 32,492 7,781 9,505 Sinclair FXNC CNN MNBC CNBC Sinclair FXNC CNN MNBC CNBC Total Total 578,988 Late News Ma

  9. Slide 9: Our Content Fees Lag Reality

    OUR CONTENT FEES LAG REALITY $6.04 Monthly rate paid by MVPD per homes passed1 $1.40 $0.99 $0.92 $0.62 $0.58 ESPN TNT FOX News USA CNN Broadcasters' Avg $19.28 Monthly rate paid by MVPD per viewing household1,2 $6.59 $5.36 $3.48 $3.41 $0.57 ESPN TNT CNN USA FXNC Broadcast (1) SNL Kagan 2014E (2) Nie

  10. Slide 10: Our Net Retrans Will Grow as We Close the Compensation Gap

    OUR NET RETRANS WILL GROW AS WE CLOSE THE COMPENSATION GAP Broadcasters should be receiving at least $16B on 36% audience delivery versus $6B today Cable Nets Broadcast $56.6 $52.7 $48.5 $8.2 $44.3 $7.5 $39.8 $6.7 $35.5 $5.9 $4.9 $48.4 $45.2 $3.6 $41.8 $38.4 $34.9 $31.8 2013 2014 2015 2016 2017 2018

  11. Slide 11: We Offer a Digital Platform That Rivals the Most Popular Websites

    WE OFFER A DIGITAL PLATFORM THAT RIVALS THE MOST POPULAR WEBSITES 175.0 Most Popular News Websites 150.0 Unique Monthly Visitors (mils) 110.0 95.0 70.0 65.0 63.0 53.0 47.0 42.0 40.0 36.0 35.0 35.0 34.0 32.0 110.0 Most Popular Political Websites Unique Monthly Visitors (mils) 35.0 25.0 21.0 16.0 15.0

  12. Slide 12: We Offer Multiple Distribution Platforms

    WE OFFER MULTIPLE DISTRIBUTION PLATFORMS FOR BENEFIT OF ADVERTISERS, CONTENT CREATORS AND MVPDS Over the air: Digital: Cable: • One-to-many platform • Offer websites, • D.C. only with mass audiences social media, NewsChannel8 mobile apps, ratings meet or • 162 primary channels digital agency exceed

  13. Slide 13: The Market Over-Estimates Industry Risk and Under-Estimates Our Competitive Advantage

    THE MARKET OVER-ESTIMATES INDUSTRY RISK AND UNDER-ESTIMATES OUR COMPETITIVE ADVANTAGE Audience & advertising Network/Affiliate Industry leverage trends positive relations solid declining • TV advertising share to grow • Reverse retrans and • More stable business model from 35% to 37%1 sports contrib

  14. Slide 14: The Industry Is Building the Next Generation Broadcast Wireless Network

    THE INDUSTRY IS BUILDING THE NEXT GENERATION BROADCAST WIRELESS NETWORK Stationary Mobile Wholesale Price of Wholesale Price of Wireless Wired Transmission 4G LTE Transmission 1¢ - 5¢ / GB $2 - $3 / GB 100x Difference Upgrading the industry’s standard would enable TV spectrum to move from competing

  15. Slide 15: We Are Seeking Equal Regulatory Treatment

    WE ARE SEEKING EQUAL REGULATORY TREATMENT • Why can cable, satellite, the phone companies, networks and the web reach 100% of the country; but broadcast is limited to 39%? • Why can the largest cable system own TV stations in the largest markets, 2 broadcast networks, cable channels and production s

  16. Slide 16: Financial Highlights

    Financial Highlights

  17. Slide 17: Another Record-Breaking PF Year

    ANOTHER RECORD-BREAKING PF YEAR Free Cash Flow per SBG’s definition. 2014 amounts are pro forma for all transactions closed in 2014.

  18. Slide 18: We Expect Significant Political Advertising in 2016

    WE EXPECT SIGNIFICANT POLITICAL ADVERTISING IN 2016 ($ in Millions) Sinclair well- positioned for 2016: $258  Nation’s $161 $147 capital  21 state capitals  10 swing states 2010 2012 2014 2016 Pro forma totals

  19. Slide 19: Our Balance Sheet Is Solid Providing Us Capacity to Grow

    OUR BALANCE SHEET IS SOLID PROVIDING US CAPACITY TO GROW Maturity Schedule Revolver 1,328 Senior Unsecured Notes Term Loans 709 607 550 500 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 Excludes capital lease obligations, amortization of debt, VIE and non-recourse debt Note: Term Loan b

  20. Slide 20: We Generate Significant Cash Flow

    WE GENERATE SIGNIFICANT CASH FLOW  53% EBITDA conversion ratio Free Cash Flow  14% FCF yield ($ in Millions)  51% payout ratio in 2014 $403-$422 $377  $4.51 PF FCF per share 2014  $4.21-$4.63 avg per share expected over next 2 years $263 $213 2014 Uses of FCF: $160 $145  39% Reinvest in LT gro

  21. Slide 21: Sinclair Broadcast Group – Why Us

    SINCLAIR BROADCAST GROUP – WHY US

Sinclair Broadcast Group — Deutsche Bank Conference 2015 on 6ix