Slide 1: HY2015 Results Presentation
HY2015 RESULTS PRESENTATION STRICTLY CONFIDENTIAL 25 AUGUST 2015
Slide 2: Contents
CONTENTS 01 Highlights 02 Business Snapshot 03 Digital 04 Financial Performance 05 Guidance & Outlook A Appendix
Slide 3: Highlights
HIGHLIGHTS
Slide 4: Strong First Half Performance
STRONG FIRST HALF PERFORMANCE FINANCIAL HIGHLIGHTS OPERATIONAL EXECUTION INDUSTRY TAILWINDS • Revenue – up 6.1% • Contract wins and Major Renewals • Continued Market Growth • EBITDA – up 51.4% • Digital hits 29% of total revenue • Digital Growth • Adjusted NPAT – up 123.7% • Large Format Digital Rol
Slide 5: Business Snapshot
BUSINESS SNAPSHOT 2
Slide 6: Place-Based
THE NETWORK WITH THE LARGEST AUDIENCE REACH IN AUSTRALIA CREATING UNMISSABLE IMPACT FOR BRANDS UP UP 4.7% 18.2% UP UP 8.6% 14.4% PLACE-BASED STRICTLY CONFIDENTIAL 5
Slide 7: Strategy
STRATEGY 1. Self Sustaining Growth 2. Contracts and Acquisitions 3. Strategic Digitisation & Innovation STRICTLY CONFIDENTIAL 6
Slide 8: Strategy – Self Sustaining Growth
STRATEGY – SELF SUSTAINING GROWTH 1 GENERATING NEW REVENUE OPPORTUNITIES - H1 REVENUE +6% YEAR TO DATE • Data and insights that demonstrate superior ROI to other mediums • Building complementary extensions online and mobile online • Delivering greenfield locations 2 DELIVERY OF MARGIN EXPANSION – H1
Slide 9: Strategy – Contracts and Acquisitions
STRATEGY – CONTRACTS AND ACQUISITIONS Maintaining High Quality National Network CONTRACTS, Balanced Portfolio across Assets LONG TERM SITE Established Portfolio PORTFOLIO & ACQUISITIONS Successful acquisition integration Renewals & Extensions Contract Wins STRICTLY CONFIDENTIAL 8
Slide 10: Strategy – Contracts
STRATEGY – CONTRACTS RENEWALS & EXTENSIONS • Roadside - more than 80, including 26 premium RMS Sydney Roadside billboards • Retail – over 35 centres renewed and extended across ANZ including QIC and Kiwi Property • Digital Contract extensions within Prospectus business case rent increases WINS • Ret
Slide 11: Strategy – Strategic Digitisation & Innovation
STRATEGY – STRATEGIC DIGITISATION & INNOVATION Building the Platform Largest Digital Signage Footprint Content Innovative Interactivity Mobile Devices and Internet Big Data Analytics STRICTLY CONFIDENTIAL 10
Slide 12: Digital Highlights
DIGITAL HIGHLIGHTS
Slide 13: Digital Highlights
DIGITAL HIGHLIGHTS ROAD Rollout of 10 new digital billboards 2 x largest full motion roadside digital billboards Focus on true premium and highest performing digital locations - Signature Collection RETAIL Rollout of 320 new panels Delivered 9 x Digital Large format Atrium banners - EVOKE Rollout of
Slide 14: Digital Revenue $36 Million, Achieving Full Year Revenue Targets
ACHIEVING FULL YEAR REVENUE TARGETS DIGITAL MEDIA REVENUE AS % TOTAL REVENUE • All operating divisions continue to experience growth 90% 80% 76% in digital media revenue penetration 72% 70% 59% 60% 54% • Road leading growth followed by retail 50% 40% 32% DIGITAL REVENUE 30% 26% 20% $36 MILLION 10% 6
Slide 15: Financial Performance
FINANCIAL PERFORMANCE
Slide 16: Summary Financial Information: H1 2015 vs Pro Forma H1 2014
SUMMARY FINANCIAL INFORMATION: H1 2015 VS PRO FORMA H1 2014 H1 2014 ($Am) H1 2015 CHANGE % PRO FORMA(1) REVENUE 124.1 116.9 +6.1% EBITDA (2) 20.2 13.3 +51.4% ADJUSTED NPAT(3) 8.5 3.8 +123.7% ADJUSTED EPS(3)(4) 5.7 2.5 +123.7% (CENTS PER SHARE) INTERIM DIVIDEND (CENTS PER SHARE, FULLY 2.8 - - FRANKED
Slide 17: Full Profit and Loss
FULL PROFIT AND LOSS #039;m H12015 H12014 • Strong underlying revenue growth Pro forma Change (%) • Gross Profit increase 23.2% + 4.8% Revenue 124.1 116.9 6.1% margin expansion Cost of media sites and production (81.1) (82.0) 1.2% Gross profit 43.0 34.9 23.2% • Operating expenditure increase Gross prof
Slide 18: Revenue by Division
REVENUE BY DIVISION #039;m H12015 H12014 Statutory Change (%) • All Australian divisions contributing Road 50.4 48.1 4.7% to revenue growth Retail 40.6 37.4 8.6% • Road and retail top line and Fly 26.2 22.2 18.2% underlying growth. Place 4.8 4.2 14.4% • Fly growth across all areas including Australia 1
Slide 19: Cash Flow and Capex
CASH FLOW AND CAPEX #039;m H12015 H12014 Pro forma Change (%) • +36% increase in cash from operating activities sufficient to EBITDA (pre-impairment charge) 20.2 13.8 45.9% continue to fund capital expenditure Interest and income tax (included in net cash from operating activities) (1.7) (6.1) 72.0% ov
Slide 20: Balance Sheet and Credit Ratios
BALANCE SHEET AND CREDIT RATIOS #039;m 30-Jun-15 31-Dec-14 • Strong balance sheet positon to Cash and cash equivalents 5.7 20.2 support future growth initiatives Other current assets 66.1 65.6 • Net assets increase of $4.2m or Property, plant and equipment 68.6 62.4 1.7% against year ended 2014 Intangi
Slide 21: Guidance & Outlook
THIS THE LEX THIS IS HEART BCI
Slide 22: Guidance Upgrade
GUIDANCE UPGRADE 1 Upgraded Full Year EBITDA Guidance from $48.6 in the Prospectus to $53 million to $55 million 2 Upgraded guidance reflects • Strong 1st half performance • Current Q3 media bookings • Market Conditions 3 Board confirms full year dividend payout ratio 40%-60% NPATA STRICTLY CONFIDEN
Slide 23: Strong First Half Performance
STRONG FIRST HALF PERFORMANCE STRONG DIGITAL MARGIN CONTINUED FY15 EBITDA FINANCIAL ROLL OUT EXPANSION SECTOR FORECAST RESULTS ON TRACK TAILWINDS UPGRADE STRICTLY CONFIDENTIAL 22
Slide 24: Questions
QUESTIONS 6
Slide 25: Appendix
APPENDIX —_—-
Slide 26: Important Notice
IMPORTANT NOTICE oOh!media’s Financial Statements for the periods ended 31 December 2014 and 30 June 2015 are presented in accordance with Australian Accounting Standards. oOh!media has also chosen to include certain non-IFRS financial information. This information has been included to allow investo
Slide 27: Pro Forma Adjustments to Statutory Results for H1 2014 Revenue and NPAT
PRO FORMA ADJUSTMENTS TO STATUTORY RESULTS FOR H1 2014 REVENUE AND NPAT #039;m H12014 • Restatement of H1 2014 results Statutory revenue 117.4 as if the operating and capital Discontinued operations (0.5) structure following the IPO had Pro forma revenue 116.9 been in place from the beginning Statutory
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, 25 August 2015). The information contained in this presentation is of gener