Ooh Media Ltd · ASX:OML
Ooh Media — CY2014 Earnings Presentation
32 slides from Ooh Media's earnings presentation, Feb 23, 2015
Slide 1: CY2014 Results Presentation
CY2014 RESULTS PRESENTATION STRICTLY CONFIDENTIAL 23 FEBRUARY 2015
Slide 2: 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 February 2015). The information contained in this presentation is of gen
Slide 3: Contents
UPDATE CONTENTS 01 Highlights 1 02 Business Snapshot 7 03 Digital 13 04 Financial Performance 18 05 Outlook 26 A Appendix 29
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Pro Forma CY2014 Results Exceeded Prospectus Forecast
PRO FORMA CY2014 RESULTS EXCEEDED PROSPECTUS FORECAST ($Am) ACTUAL FORECAST VS FORECAST VS 2013 REVENUE 260.8 258.2 +1.0% +7.1% EBITDA 42.1 40.3 +4.7% +27.9% ADJUSTED NPAT 18.2 17.5 +4.0% +222.3% ADJUSTED EPS 12.1 11.7 +3.9% +227.2% (CENTS PER SHARE) STRICTLY CONFIDENTIAL 4
Slide 6: Statutory CY2014 Results Exceeded Prospectus Forecast
STATUTORY CY2014 RESULTS EXCEEDED PROSPECTUS FORECAST ($Am) ACTUAL FORECAST VS FORECAST VS 2013 REVENUE 261.3 258.6 +1.0% +4.4% EBITDA 35.9 30.9 +16.2% +23.6% ADJUSTED NPAT (4.7) (8.4) +43.7% +49.7% STRICTLY CONFIDENTIAL 5
Slide 7: Other CY2014 Highlights
OTHER CY2014 HIGHLIGHTS 1 Market leadership position within all operating segments Strong revenue contribution from all operating divisions delivering 2 close to or above forecast 3 Continued implementation of digital strategy with asset rollouts, innovative campaigns, and integration of environment
Slide 8: Business Snapshot
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Slide 9: How We Deliver Into Advertisers' Needs
HOW WE DELIVER INTO ADVERTISERS’ NEEDS Diverse Premium Channels Exposure Only Company Deeper with Consumer National Engagement Reach STRICTLY CONFIDENTIAL 8
Slide 10: How We Deliver Into Advertisers' Needs
HOW WE DELIVER INTO ADVERTISERS’ NEEDS Breadth of environments & audiences Un-replicable and unmissable sites • Road – broadest reach in OOH of Australian population on a weekly • Road – iconic billboards such as Mosman basis Overbridge, Story Bridge Diverse • Retail – 14m shopper visits per Premium
Slide 11: A Big Year Across All Our Divisions
A BIG YEAR ACROSS ALL OUR DIVISIONS • Development Application’s approved • Completed world class digital roll for big digital billboards including out for Emporium and Macquarie Melbourne full motion ‘Times Square’ Centre site • Won rights to Westfield East • Australia’s largest animated Digital Gar
Slide 12: Growth Strategies and Initiatives
GROWTH STRATEGIES AND INITIATIVES ✓ Participating in the expected continued strong growth in the Out Of Home industry and benefiting from the emergence of audience measurement systems, such as MOVE 1. Organic Growth ✓ Beneficiary of the transition to mobile online media and digital delivery advertis
Slide 13: Leading Static Market Reach
LEADING STATIC MARKET REACH oOh!media’s Market Leading Static Offering Road Fly Retail Sport Regional Study STRICTLY CONFIDENTIAL 12
Slide 14: Digital
DIGITAL
Slide 15: Leading Digital Market Reach
LEADING DIGITAL MARKET REACH oOh!media’s digital network – 1,900+ digital signs – All day Sun-Sat Over 600 Over 100 Over 200 Over 120 10 road side Over 200 digital screens 360 café sports venue university digital screens internal fly in retail screens screens screens screens and growing panels envir
Slide 16: Interactivity Combined With Static Brand Strength Driving Deep Engagement
INTERACTIVITY COMBINED WITH STATIC BRAND STRENGTH DRIVING DEEP ENGAGEMENT WITH CONSUMERS Ground-breaking multi- World first campaign channel digital campaign using vehicle delivers short story to recognition technology flyers’ mobile devices, to trigger tailored extending brand beyond advertising on
Slide 17: Digital Game Plan
DIGITAL GAME PLAN oOh! has more than double the digital revenue of its nearest competitor and growing quickly Digital strategy to date has focused on Retail, Fly and Place environments The next phase of digital growth is targeted for Road and Retail, with significant potential to expand digita
Slide 18: Digital In 2015 Means...
DIGITAL IN 2015 MEANS… Digital rollout on track to deliver to forecast Digital investments achieving target ROIs Long term leases underpinning digital expansion Digital interactivity and capability enhancements Digital-led yield improvements STRICTLY CONFIDENTIAL 17
Slide 19: Financial Performance
FINANCIAL PERFORMANCE
Slide 20: Pro Forma Results Overview
PRO FORMA RESULTS OVERVIEW Pro forma ($m) CY2014 CY2013 Business has performed strongly in CY2014 Actual Forecast Change (%) Actual Change (%) – Revenue, EBITDA, NPAT and Adjusted NPAT all Revenue 260.8 258.2 1.0% 243.5 7.1% exceeding prospectus forecasts Cost of media sites and production (172.9)
Slide 21: Year-on-Year Statutory Results Overview
YEAR-ON-YEAR STATUTORY RESULTS OVERVIEW Statutory ($m) CY2014 CY2013 Actual Forecast Change (%) Actual Change (%) Revenue 261.3 258.6 1.0% 250.4 4.4% Cost of media sites and production (173.3) (173.0) (0.2)% (167.5) (3.5)% Gross profit 88.0 85.6 2.8% 82.9 6.1% Statutory results exceeding forecast
Slide 22: Statutory To Pro Forma Results Reconciliation
STATUTORY TO PRO FORMA RESULTS RECONCILIATION $'m CY2014 CY2014 CY2013 Actual Forecast Actual Statutory revenue 261.3 258.6 250.4 Discontinued operations (0.5) (0.4) (6.9) Pro forma revenue 260.8 258.2 243.5 Pro forma adjustments reflect transition of company to public listing in December 2014 Sta
Slide 23: Revenue By Division
REVENUE BY DIVISION Pro forma ($m) CY2014 CY2013 Actual Forecast Change (%) Actual Change (%) Road: Ahead of prospectus forecast with Road 102.3 101.9 0.3% 102.8 (0.5)% strong final quarter. Down on CY2013 due to Retail 89.1 90.7 (1.7)% 82.2 8.3% streamlining of portfolio for duplicate or Fly 51.0
Slide 24: Pro Forma Cash Flow Before Financing And Taxation
PRO FORMA CASH FLOW BEFORE FINANCING AND TAXATION Pro forma ($m) CY2014 CY2013 Actual Forecast Change (%) Actual Change (%) EBITDA 42.1 40.3 4.7% 33.0 27.9% Pro forma net cash flow before financing and Non-cash items in EBITDA 1.9 2.0 (8.7)% 2.7 (31.2)% taxation exceeded Forecast by 7.9% and prior
Slide 25: Capital Expenditure
CAPITAL EXPENDITURE Capex ($m) 50 Key drivers of capital expenditure in CY2014: – Digital signage rollout in Retail & Place 40 – Emporium & Macquarie retail centres – Qantas Lounges & Q-view 30.3 30 Significant capital planned in 2015 to support digital expansion of Road and Retail 20 13.7 26.7
Slide 26: Balance Sheet And Credit Metrics
BALANCE SHEET AND CREDIT METRICS $'m Statutory Pro Forma 31-Dec-14 30-Jun-14 Very strong balance sheet and cash position Cash and cash equivalents 20.2 5.6 Cash and equivalents increased through the Other current assets 65.6 64.5 peak 2nd half trading period Total current assets 85.8 70.1 Proper
Slide 27: Outlook
OUTLOOK
Slide 28: CY2015 Outlook Reconfirming Prospectus Pro Forma
CY2015 OUTLOOK RECONFIRMING 60.0 EBITDA ($A millions) 48.6 PROSPECTUS PRO 50.0 42.1 40.0 33.0 FORMA CY2015F: 29.3 30.0 20.0 • $266.4m revenues 10.0 0.0 • $48.6m EBITDA FY12 FY13 FY14 FY15 Forecast • $22.2m Adjusted NPAT • 14.8 cents Adjusted Dividend Currently anticipate that both an interim and f
Slide 29: Questions
QUESTIONS
Slide 30: Appendix
APPENDIX
Slide 31: Statutory To Pro Forma Cash Flow Reconciliation
STATUTORY TO PRO FORMA CASH FLOW RECONCILIATION $'m CY2014 CY2014 Pro forma adjustments reflect transition of Actual Forecast Change ($m) Change (%) company to public listing in December Statutory net cash flow 4.7 5.2 (0.5) (10.7)% 2014 Discontinued operations - 0.1 (0.1) (100.0)% Listed public c
Slide 32: Important Notice
IMPORTANT NOTICE oOh!media’s Financial Statements for the year ended 31 December 2014 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 investors to relate the per