Nzme Limited · NZX:NZM
Nzme — Shareholder Meeting (June 2017)
29 slides from Nzme's shareholder meeting presentation, Jun 22, 2017
Slide 1: Annual Shareholders Meeting
ANNUAL SHAREHOLDERS MEETING 22 June 2017 1
Slide 2: Disclaimer
DISCLAIMER T he information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal, financial, tax or other advice. This presentation constitutes summary information only, a
Slide 3: Welcome
Welcome PETER CULLINANE INDEPENDENT DIRECTOR 3
Slide 4: Agenda
AGENDA 1. Chairperson’s address 2. Chief Executive Officer’s address 3. Ordinary resolutions • Re-election of Director • Auditor’s remuneration 4. General business and shareholder discussion 4
Slide 5: NZME's Transformation & Integration
PRODUCT BRANDS NZME’S TRANSFORMATION & INTEGRATION CAPABILITIES E-COMMERCE EXPERIENTIAL NTENT + CHAN RE CO NE LS CO CREATIVE BRANDED CONTENT Listed on NZX Main Board NEWS and ASX on 27 June 2016. Demerged from APN PRINT RADIO News & Media Limited on 29 June 2016. EVENTS VIDEO Transformed into an aud
Slide 6: FY16 Results Summary
NZME FY16 RESULTS SUMMARY STATUTORY NPAT TRADING REVENUE1 TRADING EBITDA1 $74.5m $407.4m $71.9m 74% FY15 $42.9m ▼ 6% FY15 $433.0m 0% FY15 $71.8m2 PRO FORMA NPAT1 PRO FORMA EPS1 $27.8m 14.2cps Fletch, Vaughan + Megan 1% FY15 $27.5m 6AM - 10AM WEEKDAYS 9.5 FULL YEAR DIVIDENDS TOTALLED cps (INTERIM 3.5
Slide 7: Proposed NZME / Fairfax NZ Merger
PROPOSED NZME / FAIRFAX NZ MERGER 7
Slide 8: At the centre of what New Zealanders want
- AT THE CENTRE OF WHAT NEW ZEALANDERS WANT. Sharing great stories, ! + FIDEN NECTE URIOU ? ON ON entertaining, engaging and C C C T S D connecting all New Zealanders. 8
Slide 9: Executive Team
NZME EXECUTIVE TEAM ALLISON SHAYNE SARAH SARAH MIKE MATT MICHAEL LIZA LAURA DEAN MICHELLE WHITNEY CURRIE WOOD JUDKINS MORAN WILSON BOGGS MCNALLY MAXWELL BUCHANAN HAMILTON LEGAL MANAGING GENERAL CHIEF CHIEF CHIEF CHIEF CHIEF CHIEF GROUP GROUP COUNSEL & EDITOR MANAGER, STRATEGY FINANCIAL OPERATING EXE
Slide 10: Board
NZME BOARD SIR JOHN ANDERSON CAROL CAMPBELL PETER CULLINANE Independent Chairman Independent Director Independent Director 10
Slide 11: Winners
Amanda Linnell MATT HEATH Managing Editor JEREMY WELLS 6AM - 10AM WEEKDAYS WINNERS AT THE 2017 Liam Dann THE BLACKIE AWARD NZ Herald Business FOR RADIO COMEDY EXCELLENCE Editor at Large 11
Slide 12: Michael Boggs, Chief Executive Officer
MICHAEL BOGGS CHIEF EXECUTIVE OFFICER 12
Slide 13: NZME is one of NZ's leading media & entertainment businesses
NZME IS ONE OF NZ’S LEADING MEDIA & ENTERTAINMENT BUSINESSES PRODUCT BRANDS CAPABILITIES E-COMMERCE EXPERIENTIAL ENT + CHA CONT NN RE EL CO S CREATIVE BRANDED CONTENT NEWS PRINT RADIO VIDEO EVENTS ENT. SPORT DIVERSE DIGITAL AUDIENCES SERVICES DIGITAL STRATEGY RADIO BRAND AND PLANNING ENGAGEMENT 13
Slide 14: NZME Newsroom 'The Bridge'
NZME NEWSROOM “THE BRIDGE” 14
Slide 15: Trading Result
NZME TRADING RESULT 1 NZME Trading Result1 ($m) FY16 FY15 % Change Trading Revenue1 407.4 433.0 (6%) Other Income 2.4 0.5 334% Costs (337.8) (358.6) (6%) NZME Segment Result2 71.9 74.9 (4%) Adj. for standalone costs incurred in H2 162 - (3.1) (100%) Trading EBITDA1 71.9 71.8 0% PRO FORMA NPAT1 PRO F
Slide 16: Achievement of Operational Priorities
NZME ACHIEVEMENT OF OPERATIONAL PRIORITIES 1. AUDIENCE GROWTH 2. PRINT REVENUE 3. RADIO REVENUE 5% 1 DECLINE SLOWED AGENCY RETURNED TO GROWTH, OF IN FY16 DIRECT REVENUE DECLINE SLOWED 4. DIGITAL REVENUE 5. COST SAVINGS 24% YoY GROWTH 6% YoY 6. TALENT DEVELOPED THE HITS - NEW BREAKFAST SHOW LEADERSHI
Slide 17: NZME's reach is growing
NZME’S REACH IS GROWING, 81%1 OF NEW ZEALANDERS NOW READ, WATCH, LISTEN TO, OR OTHERWISE ENGAGE WITH OUR BRANDS 84% 88% of the of North Island1 Auckland1 NZME REACHES: 70% of the South Island1 Our national and local presence allows us to offer advertisers broad access to their target markets (1) Nie
Slide 18: NZME Print
NZME PRINT PRO FORMA REVENUE1 -6% IN FY16 To $237.7m • Best Daily Newspaper (more than 30,000 circulation) • Newspaper of the Year • Best Weekly Newspaper • Best Newspaper Front Page (1) Pro forma Revenue is a non-GAAP measures that is explained and reconciled in the NZME Full Year 2016 Results Pres
Slide 19: Radio & Experiential
NZME RADIO & EXPERIENTIAL TRADING REVENUE1 -4% IN FY16 To $114.8m T1 17 WINNERS RADIO SURVEY 2 AT THE 2017 NZME total market share Network Station + 1.9% of the Year Listener growth across all ‘The Blackie’ award NZME stations # 1 commercial radio station Numerous other awards (1) Trading Revenue is
Slide 20: Digital & E-Commerce
NZME DIGITAL & E-COMMERCE TRADING REVENUE1 +9% IN FY16 To $52.2m (1) Trading Revenue is a non-GAAP measures that is explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017. INMA WORLD CONGRESS: BEST LAUNCH OF A BRAND OR PRODUCT TO CREATE AN AUDIENCE SEGMENT La
Slide 21: Development and New Initiatives
NZME DEVELOPMENT AND NEW INITIATIVES 21
Slide 22: Proposed Merger with Fairfax NZ
NZME PROPOSED MERGER WITH FAIRFAX NZ STUFF CUISINE THE DOMINION POST SUNDAY STAR TIMES NEIGHBOURLY NZ HOUSE & GARDEN THE PRESS STUFF FIBRE NIGHT NOODLE MARKETS Source: Nielsen CMI Fused Q1 16 - Q4 16 Mar 2017 AP10+ 22
Slide 23: FY17 Priorities
NZME FY17 PRIORITIES TARGETS Grow audience reach Continue to retain Print revenue Return Radio revenue to growth Grow new revenue streams Effective cost and capital management Develop our people and retain our talent Complete the Fairfax NZ merger (subject to successful appeal and shareholder approv
Slide 24: Our People
zt a OUR PEOPLE NZME -
Slide 25: Ordinary Resolutions
ORDINARY RESOLUTIONS 25
Slide 26: Ordinary Resolutions – Resolution 1
ORDINARY RESOLUTIONS – RESOLUTION 1 To consider and, if thought fit, to pass the following ordinary resolution: Resolution 1: Re-election of Director It is hereby resolved, as an ordinary resolution, that Peter Cullinane, who retires by rotation and is eligible for re-election, be re-elected as a Di
Slide 27: Ordinary Resolutions – Resolution 2
ORDINARY RESOLUTIONS – RESOLUTION 2 To consider and, if thought fit, to pass the following ordinary resolution: Resolution 2: Auditor’s remuneration It is hereby resolved, as an ordinary resolution, that the Directors of NZME are authorised to fix the auditor’s remuneration. Proxies & postal For Aga
Slide 28: Shareholder Discussion
SHAREHOLDER DISCUSSION 28
Slide 29: Thank You
THANK YOU 29