NZME Limited · NZX:NZM
NZME — Shareholder Meeting (April 2023)
31 slides from NZME's shareholder meeting presentation, Apr 26, 2023
Slide 1: NZME Annual Shareholders' Meeting
For personal use only 26 APRIL 2023 NZME ANNUAL SHAREHOLDERS’ MEETING KEEPING KIWIS IN THE KNOW
Slide 2: Welcome
For personal use only WELCOME BARBARA CHAPMAN INDEPENDENT CHAIRMAN 2
Slide 3: Agenda
AGENDA For personal use only 1. Chairman’s Address 2. Chief Executive Officer’s Address 3. Ordinary Resolutions Resolution 1: Re-election of Director Resolution 2: Auditor’s Remuneration 4. General Business 3
Slide 4: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS BARBARA CHAPMAN INDEPENDENT CHAIRMAN 4
Slide 5: 2022 Financial Results
2022 FINANCIAL RESULTS For personal use only • Operating Revenue1 7% • Statutory Net Profit 66% • Operating Net Profit After Tax1 10% • Operating Earnings per share 12.1 cents per share 1. Operating results presented are non-GAAP measures that include the impact of NZ IFRS 16 but exclude exceptional
Slide 6: Strategic Priorities
STRATEGIC PRIORITIES For personal use only Customer First Win with Quality Digital Acceleration Audience Expansion Top Performer NEW ZEALAND’S YOUR COMPLETE NEW ZEALAND’S LEADING AUDIO PROPERTY HERALD COMPANY DESTINATION Create New Zealand’s best The #1 News brand for Strengthen core residential loc
Slide 7: State of the Economy
STATE OF THE ECONOMY For personal use only 7
Slide 8: Low Leverage and Strong Returns to Shareholders
LOW LEVERAGE AND STRONG RETURNS TO SHAREHOLDERS For personal use only Distributions to shareholders were $43 million during Net Debt and Leverage Ratio 2022 including: 120 2.1 • 2021 final dividend of 5 cents per share, totaling $9.9 1.8 million; 100 • Interim dividend of 3 cents per share, totaling
Slide 9: Strong Sustainability Commitment
STRONG SUSTAINABILITY COMMITMENT For personal use only We look forward to the continued implementation of our sustainability PROMOTING A HEALTHY, DIVERSE RECYCLING RESPONSIBLE REPORTING AND initiatives and to have meaningful, BROADCASTING AND SAFE WORKPLACE NZME launched a new sustainable NZME maint
Slide 10: NZME Board
NZME BOARD For personal use only Barbara Chapman Carol Campbell David Gibson Sussan Turner Guy Horrocks Independent Chairman Independent Director Independent Director Independent Director Independent Director 10
Slide 11: Barbara Chapman, Independent Chairman
For personal use only BARBARA CHAPMAN INDEPENDENT CHAIRMAN 11
Slide 12: Michael Boggs, Chief Executive Officer
For personal use only MICHAEL BOGGS CHIEF EXECUTIVE OFFICER 12
Slide 13: Results Summary
RESULTS SUMMARY For the full year ending 31 December 2022 For personal use only $364.6m $64.7m $22.7m Operating Revenue1 Operating EBITDA1 Statutory NPAT 2021 $342.2m 7% 2021 $62.4m 4% 2021 $34.4m 66% $23.3m 12.1 cps 9.0 cps Operating NPAT1 Operating EPS1 Total Ordinary Dividends for 2021 $21.1m 10%
Slide 14: Compelling Platforms for Audiences and Advertisers
COMPELLING PLATFORMS FOR AUDIENCES AND ADVERTISERS For personal use only Something about revenue Reaches 2.0 million1 • 1.2 million digital audio listeners are reached monthly2 • NZ’s #1 radio station & breakfast show on Newstalk ZB 1 • NZ’s #1 podcast network3, with over 800,000 monthly listeners3
Slide 15: Market Share Growth Across All Platforms
MARKET SHARE GROWTH ACROSS ALL PLATFORMS For personal use only Radio Market Revenue1 Print Market Revenue2 Digital Market Revenue3 Market Revenue NZME Share Market Revenue NZME Share Q1 - Q3 Q4 NZME Share 250.0 27.0% 270.0 42.0% 250.0 48.0% 260.0 41.5% 200.0 200.0 26.0% 250.0 47.5% 41.0% 240.0 150.0
Slide 16: Digital Transformation Delivering Growth
DIGITAL TRANSFORMATION DELIVERING GROWTH For personal use only DIGITAL AUDIO DIGITAL PUBLISHING DIGITAL ONEROOF REVENUE REVENUE REVENUE +54% +12% H1 H2 H1 H2 H1 H2 +32% +30% 7.0 80.0 12.0 6.0 70.0 10.0 +90% +17% +85% Revenue ($m) Revenue ($m) Revenue ($m) 60.0 5.0 8.0 50.0 4.0 +42% 6.0 +53% 40.0 3.0
Slide 17: Strategic Priorities
STRATEGIC PRIORITIES For personal use only NEW ZEALAND’S YOUR COMPLETE NEW ZEALAND’S LEADING AUDIO PROPERTY HERALD COMPANY DESTINATION Create New Zealand’s best The #1 News brand for Strengthen core residential local audio content all New Zealanders listings business Grow broadcast and Subscriber Be
Slide 18: New Zealand's Leading Audio Company
NEW ZEALAND’S LEADING AUDIO COMPANY For personal use only 2023 Target 2020 2021 2022 set in 2020 Achievement Achievement Achievement Create New Zealand’s NZME share of total audience best local audio content > 1% share point 35.6%1 37.4%1 37.7%1 growth per annum Radio Revenue Share > 1% share poi
Slide 19: New Zealand's Herald
NEW ZEALAND’S HERALD For personal use only 2023 Target 2020 2021 2022 set in 2020 Achievement Achievement Achievement Subscription Volume Target The #1 News brand for all More than 210,000 169,000 191,000 209,0001 by 2023 year-end New Zealanders Subscription Volume Mix Digital Only > Print 32%
Slide 20: Your Complete Property Destination
YOUR COMPLETE PROPERTY DESTINATION For personal use only 2023 Target 2020 2021 2022 set in 2020 Achievement Achievement Achievement Residential Listings 96% of listings Strengthen core (100% of 89%1 91%1 89%1 non- residential listings private listings) business Audience 564k, 459k, 497k, Reduce g
Slide 21: NZME Executive Team
NZME EXECUTIVE TEAM For personal use only Michael Boggs Paul Hancox Greg Hornblow Carolyn Luey David Mackrell Chief Executive Officer Chief Commercial Officer Acting Chief of OneRoof Chief Digital & Publishing Chief Financial Officer Officer Katie Mills Matt Wilson Allison Whitney Jason Winstanley C
Slide 22: Our People
22 For personal use only OUR PEOPLE
Slide 23: Business and Consumer Confidence Impacts Market
BUSINESS AND CONSUMER CONFIDENCE IMPACTS MARKET For personal use only Residential Real Estate New Listings NZME Advertising Revenue Jan 2022 – May 20231 Total Market Jan 2022 – Mar 20232 Growth on prior year Growth on prior year 35.0% 20.0% given lockdown given lockdown 30.0% 15.0% 25.0% 10.0% 20.0%
Slide 24: Market and Outlook
MARKET AND OUTLOOK For personal use only The operating environment continues to be uncertain. Advertising revenue has been weaker in the first quarter of 2023 compared to 2022. NZME advertising revenue would be in growth year-on-year if we adjusted for advertising spend by the Ministry of Health in
Slide 25: Michael Boggs, Chief Executive Officer
For personal use only MICHAEL BOGGS CHIEF EXECUTIVE OFFICER 25
Slide 26: Ordinary Resolutions
For personal use only ORDINARY 26 RESOLUTIONS
Slide 27: Ordinary Resolution 1: Re-election of Director
ORDINARY For personal use only RESOLUTION 1: RE-ELECTION OF DIRECTOR To consider and, if thought fit, to pass the following ordinary resolution: Barbara Chapman That Barbara Chapman, who retires by rotation and is eligible for re-election, be re-elected as a Director of NZME. 27
Slide 28: Ordinary Resolution 2: Auditor's Remuneration
ORDINARY For personal use only RESOLUTION 2: AUDITOR’S REMUNERATION To consider and, if thought fit, to pass the following ordinary resolution: Auditor’s Remuneration That the Directors of NZME be authorised to fix the fees and expenses of the auditor for the financial year ending 31 December 2023.
Slide 29: General Business
29 For personal use only GENERAL BUSINESS
Slide 30: For personal use only
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Slide 31: Disclaimer
DISCLAIMER For personal use only The information in this presentation is of a general nature and does not constitute financial product advice, investment advice, legal, financial, tax or any other recommendation or advice. This presentation constitutes summary information only, and you should not re