Nine Entertainment Co. Holdings Limited · ASX:NEC
Nine Entertainment — Shareholder Meeting (November 2014)
23 slides from Nine Entertainment's shareholder meeting presentation, Nov 19, 2014
Slide 1: Annual General Meeting Addresses and Presentation
entertainment co. 19 November 2014 The Manager Company Announcements Office ASX Limited Level 6, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Annual General Meeting Addresses and Presentation Nine Entertainment Co. (ASX: NEC) is holding its Annual General Meeting in Sydney today, commencing at 10
Slide 2: Chairman's Address
press release NINE ENTERTAINMENT CO. ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS – MR DAVID HASLINGDEN The 2014 financial year was a very busy year for Nine Entertainment. We completed the acquisitions of Nine Adelaide and Perth, took full control of the Mi9 business, listed on the Australian Securiti
Slide 3: Chairman's Address (continued)
press release formidable player in the SVOD space. Our combined ability to market and promote the service will be second to none. We are very close to announcing our final launch plans for Stan, so expect to hear more about this in the near future. We watch, with interest, the Government’s discussio
Slide 4: Further information
press release Further information: Nola Hodgson Victoria Buchan Head of Investor Relations Director of Communications +61 2 9965 2306 +61 2 9965 2296 nhodgson@nine.com.au vbuchan@nine.com.au nine entertainment co. 24 artarmon rd willoughby nsw 2068 tel +61 2 9906 9999 fax +61 2 9965 2215 ABN 59 122
Slide 5: Chief Operating Officer's Address
press release NINE ENTERTAINMENT CO. ANNUAL GENERAL MEETING CHIEF OPERATING OFFICER’S ADDRESS – MR SIMON KELLY All-in-all, we are very pleased with the 2014 results which, across all key metrics, were ahead of the expectations we previously set. Our free to air business recorded another year of shar
Slide 6: Reconciling the result
press release For the purposes of the remainder of this presentation today, I am going to focus on the Pro Forma results which are more representative of the performance of our underlying operations. These Pro Forma results assume that we had owned Adelaide, Perth and Mi9 for the full year and that
Slide 7: FY14 result - ahead of Prospectus
press release Our core ticketing business, Ticketek, remains the single largest contributor to the Nine Live result. And this business continues to grow in terms of both revenue and profitability. You can see the historic ticketing volume trend in the chart on the left here. In FY14, ticket volumes
Slide 8: Nine Network – positive momentum
press release So, looking forward, I will turn now to our key initiatives and focus areas in the current year. We continue to target a 40% Free to Air revenue share by the end of calendar 2015, and our confidence of delivering this continues to increase. As you have already seen, we have had strong
Slide 9: Nine Live – all segments growing
press release Our Nine Ventures team is actively looking for new opportunities for investment in consumer-facing businesses where we believe we can add significant value beyond a direct financial investment, through our combined marketing and consumer distribution. Historically we have successfully
Slide 10: Annual General Meeting
Annual General Meeting 19 November 2014
Slide 11: Disclaimer
Disclaimer Important notice and disclaimer actual results to differ materially from the plans, objectives, This document is a presentation of general background information expectations, estimates and intentions expressed in such forward about the activities of Nine Entertainment Co. Holdings Limite
Slide 12: Chairman's Address
Chairman’s Address David Haslingden
Slide 13: Operational Review
Operational Review COO/CFO - Simon Kelly
Slide 14: 2014 operational highlights
2014 operational highlights 1 Result moderately ahead of Prospectus Pro Forma forecast 2 Revenue share and cost control drive improved TV result in a softening advertising market 3 Integration of Nine Adelaide and Perth on track 4 Record Live result with strong contributions from each of its princip
Slide 15: Reconciling the result
Reconciling the result Actual $m FY14 Reported NPAT 57.9 IPO related costs 51.6 Funding costs/debt restructure 46.6 Impact of acquisitions/divestments (4.8) Other 12.3 Tax effect of Pro Forma adjustments (19.4) Pro Forma NPAT 144.2 6
Slide 16: FY14 result - ahead of Prospectus
FY14 result - ahead of Prospectus Pro Forma Prospectus Actual Forecast Variance Actual Variance $m FY14 FY14 % FY13 % Revenue 1,578.3 1,565.9 +0.8 1,493.0 +5.8 Group EBITDA 311.0 305.0 +2.0 297.2 +4.7 NPAT 144.2 139.5 +3.4 136.7 +5.5 Operating Free Cash Flow 271.9 232.6 +16.9 234.1 +16.2 Operating F
Slide 17: Nine Network – positive momentum
Nine Network – positive momentum Prospectus Pro Forma Actual Forecast Actual $m FY14 FY14 Variance FY13 Variance Revenue 1,227.6 1,231.4 -0.3% 1,177.6 +4.3% EBITDA 241.5 237.6 +1.6% 221.0 +9.3% Margin 19.7% 19.3% +0.4 pts 18.8% +0.9 pts 40.0% 39.0% 38.0% 37.0% 36.0% 35.0% Ratings share 34.0% Revenue
Slide 18: Nine Live – all segments growing
Nine Live – all segments growing Prospectus Actual Forecast Actual $m FY14 FY14 Variance FY13 Variance Revenue 228.0 211.8 +7.7% 167.4 +36.2% EBITDA 68.0 67.1 +1.3% 57.3 +18.7% Margin 29.9% 31.7% - 1.8 pts 34.3% -4.4 pts Ticketek’s ticket volumes Contribution to Nine Live Revenue m $m 16.0 250 15.0
Slide 19: Nine Digital – tracks to expectations
Nine Digital – tracks to expectations Pro Forma Underlying Underlying Underlying Actual $m FY14 FY13 Variance FY14 Revenue 158.7 147.9 +7.3% 122.7 EBITDA 28.0 33.1 -15.4% 15.6 Margin 17.7% 22.4% -4.7 pts 12.7% 10
Slide 20: Positive cash flow and conservative debt profile
Positive cash flow and conservative debt profile Prospectus Actual Forecast Actual Pro Forma FY14 FY14 Variance FY13 Operating Free Cash Flow, $m 271.9 232.6 +39.3 234.1 Operating Free Cash Flow Conversion 87% 76% +11 pts 79% Actual Actual Pro Forma, As at 30 Jun 2014 30 Jun 2013 Variance Net Debt,
Slide 21: Key initiatives
Key initiatives 1 Targeting 40% revenue share in TV, with low underlying cost inflation 2 Pursuing further expansion opportunities at Nine Live, whilst growing underlying business 3 Integration of Digital, and identifying incremental revenue opportunities 4 Launch of Stan in JV with Fairfax later th
Slide 22: FY15 guidance
FY15 guidance • Business tracking well in a challenged but improving FTA market • First half Net Profit after Tax of $85 - $90m (vs $95m in H1 FY14) • Full year outlook: - EBITDA at least equal to the $311m reported in FY14 - Net Profit after Tax up c10% on FY14 driven by $25m of interest savings -
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