Slide 1: FY22 Results Presentation
CREATING CONNECTIONS THAT COUNT FY22 Results Presentation February 2023 ALL AUDIO 1
Slide 2: Agenda
Agenda FY22 Financial Highlights Strong performance in a transformational year Group Financials Executing on ‘All Audio’ strategy Outlook 2 FY22 Results Presentation
Slide 3: FY22 Financial Highlights
FY22 Financial Highlights Revenue $54.7M EBITDA1 CASH FLOW FROM OPERATING ACTIVITES2 $344.9M $91.8M +53% +53% 5.2cps DIVIDEND FROM FY23 PROFIT3 FULLY FRANKED PAYABLE MARCH 2023 EBIT1 NPAT1 $71.6M $45.1M 0.8x leverage +56% +57% BEFORE SOPRANO PROCEEDS ($66.3m) EPS1 65-85% 14.6cps DIVIDEND POLICY INCR
Slide 4: Strong performance in a transformational year
Strong performance in a transformational year Considerable progress made delivering on strategy to be the leading All Audio business in Australia Radio Record high listening in 2022; Approaching 6m per week in metro and over 8m nationally #1 metropolitan network share for people 25-54 Maintained str
Slide 5: Financial Results
Financial Results 5 FY22 Results Presentation
Slide 6: Statutory results
% change Statutory results 2022 2021 % A$ million Pro forma Reported Restated2 Change Revenue before finance income 344.9 225.0 53% 5% Other income 3.4 0.7 >100% 96% Acquisition delivers underlying EPS growth, up 40% Share of associate profits 9.7 9.1 7% 7% • 2022 results include 12 months of ARN Re
Slide 7: ARN Group – Metro, Regional, Digital
ARN Group – Metro, Regional, Digital Regional business delivers 7% pro forma growth A$ million 2022 2021 % 2021 % change • Metro radio +3%; strong result in year of significant change Change Pro forma Pro forma - Underpinned by leading ratings positions in key eastern seaboard markets Metro 192.5 18
Slide 8: ARN – Broadcast radio & digital audio
ARN – Broadcast radio & digital audio Market leading broadcast radio margins maintained A$ million 2022 2021 % 2021 % change Change Pro forma Pro forma • Demonstrates ongoing strength of our broadcast radio business • Radio cost growth limited to 5% in challenging macro- Radio 300.2 186.2 61% 286.5
Slide 9: Digital audio
Digital audio Cost base reflects Y1 investment in CADA • Full year pro forma revenue growth 8%, impacted by slow H122. A$ million 2022 2021 % Change 2021 % change • +28% revenue growth in H222 (vs H122) following Pro forma Pro forma internal review of product and inventory mix (owned vs 3rd party) i
Slide 10: Other Investments
Other Investments Cody Outdoor – Hong Kong Local • Improved market conditions & strong management team Local currency delivered a sound result currency Excl Trams A$ million 2022 2021 % change % change % change • Revenues & earnings +9% & +31% respectively on a like Total revenue 19.5 21.9 (11%) (17
Slide 11: Group cash flow
Group cash flow Highly cash generative business A$ million Dec 2022 Dec 2021 • Operating cash flows of $54.7m, up 60%, owing to the Operating cash flows and lease payments 54.7 34.2 acquisition of ARN Regional Tax payments (25.4) (9.8) • Payments on all historical tax matters now settled Tax settlem
Slide 12: Group balance sheet
Group balance sheet Reported Restated(2) Change A$ million Dec 2022 Dec 2021 $ Strong balance sheet with leverage under 0.8x Cash and cash equivalents 23.9 257.1 (233.2) Receivables 65.7 51.4 14.3 • Net debt of $61 million and 0.8x leverage, before Soprano sales proceeds (1) Assets held for sale 23.
Slide 13: Executing on 'All Audio' strategy
Executing on ‘All Audio’ strategy 13 FY22 Results Presentation
Slide 14: Australia's All Audio destination of choice
Australia’s All Audio destination of choice Sustainable, low investment model delivering long-term value for shareholders 1 Leading Radio operator in Australia Audio Events & Experiences Branding Radio 2 Delivering regional revenue synergy growth Audio DAB+ 3 Building profitable, incremental audienc
Slide 15: Most successful ratings year
Most successful ratings year ARN Weekly Cume 9000 Continued importance of Radio ratings to deliver revenue growth 8000 7000 +40% 1.9m • Record high radio listeners in 2022, approaching 6 million per week in metro and 8m+ 6000 nationally 5000 • #1 radio network share with 24.2% for people 25-54 and 1
Slide 16: Investing to build a profitable audio youth audience
Investing to build a profitable audio CADA Gross Reach youth audience 3,500,000 3,000,000 2,500,000 • National youth brand, CADA, launched in March 2022 • Gross reach grew across all platforms is up by 784% to well over 3m 2,000,000 • DAB+ listeners have grown from +32% (to 167k) lifting network you
Slide 17: Content strategy building communities in Australia
Content strategy building communities in Australia Committed to the power of local voices and content in the regional markets we serve • Critical role in regional communities during emergencies • Successful localised content strategy building engaged audiences • 58 stations, 46 DAB+ stations across
Slide 18: Delivering regional revenue synergy growth in 2023
Delivering regional revenue synergy growth in 2023 Integration ahead of schedule and proving to be an outstanding acquisition • Delivered strong regional revenue result • +7% growth; Out-performing the market • +$7M national revenue synergies achieved • New regional management structure established
Slide 19: Radio continues to dominate in expanding audio market
Radio continues to dominate in expanding audio market Radio market returning post Covid with Incremental audiences and revenue opportunities emerging in digital audio METRO AD MARKET RETURNING DIGITAL LISTENING GROWING AUDIENCES VALUE OF AUDIO MARKET $1.4bn 900 1,500,000 800 Incremental revenue oppo
Slide 20: iHeart – ARN's digital audio strategy
iHeart – ARN’s digital audio strategy Partnering with global tech to profitably monetise digital radio, podcasts and music DIGITAL AUDIENCE PARTNERSHIPS DATA REVENUE $14.6M Podcasting (+8%) #1 podcast publisher 10,000,000+ Monthly Australian H222 Digital Revenues 290m downloads unique devices 9 (+40
Slide 21: Well positioned to create future shareholder value
Well positioned to create future shareholder value • Attractiveness and resilience of radio in uncertain economic times • The positioning of our market-leading assets underpins standalone growth prospects over the short and medium term • Regional integration ahead of schedule; Increasing confidence
Slide 22: Outlook
Outlook 22 FY22 Results Presentation
Slide 23: Trading Update
Trading Update ARN Q1 radio revenues1 are pacing near flat on same time last year cycling strong regional comparatives and impacted by reduced government spend for the period. Consistent with historical radio planning, visibility into March and Q2 is short however current briefing activity levels re
Slide 24: Thank You
Thank You 24 FY22 Results Presentation
Slide 25: Disclaimer
Disclaimer This document has been prepared by HT&E Limited (HT&E) to provide general information about the activities of HT&E and its subsidiaries at the time of release of this document. Unless specified otherwise, information in this document refers to the relevant financial period covered by the
Slide 26: Appendices
Appendices 26 FY22 Results Presentation
Slide 27: ARN Stations
ARN Stations Darwin – MIX 104.9 FM/HOT 100.1 FM/TERRITORY FM 58 stations, 46 DAB+ stations across 33 markets Cairns – 4CA AM/STAR 102.7 FM Atherton – 4AM Innisfail – 4KZ/KOOL FM 98.3 Townsville – POWER 100.7/STAR 106.3 FM Whitsundays – STAR 90.7FM Mackay – 4MK AM/STAR 101.9 FM Rockhampton – 4CC/4RO
Slide 28: Reconciliation of segment result to statutory result
Reconciliation of segment result to statutory result Segment result Significant items Statutory result A$ million 2022 2021 2022 2021 2022 2021 Revenue before finance income 344.9 225.0 – – 344.9 225.0 Other income 3.4 0.7 5.3 17.9 8.7 18.6 Share of associate profits 9.7 9.1 – 0.7 9.7 9.8 Costs (266
Slide 29: H1 and H2 performance
H1 and H2 performance H1 Revenue H1 EBITDA H2 Revenue H2 EBITDA A$ reported A$ reported A$ reported A$ reported A$ million 2022 % change 2022 % change 2022 % change 2022 % change Australian Radio Network 157.8 63% 45.9 63% 157.0 59% 40.6 58% HK Outdoor 9.4 12% 4.7 10% 10.0 (25%) 4.1 (35%) Digital In
Slide 30: Significant items
Significant items A$ million Dec 2022 Dec 2021 • Current year includes: Fair value adjustment on Lux Group shares 5.3 17.9 ⎯ Fair value gain on disposal of Lux Shares $5.3m Acquisition costs – ARN Regional (5.3) (2.0) ⎯ ARN Regional acquisition and integration costs $8.7m Integration costs – ARN Reg
Slide 31: HT&E Corporate
HT&E Corporate • Corporate costs down 6%; below historical run-rate due to part A$ million 2022 2021 % change forfeiture of executive incentives under TIP in FY22 Salary and wages 3.7 3.5 4% • FY23 Corporate costs expected ~$10.5m, reflecting part normalization of executive incentive costs Incentive
Slide 32: AASB 16 Leases – 2022
AASB 16 Leases – 2022 AASB 16 AASB 16 AASB 16 Result Leases Reported Leases Leases without A$ million Adjustment 2022 Adjustment Adjustment adoption of Digital ARN HK Outdoor AASB 16 Investments ARN 86.5 (5.7) – – 80.8 HK Outdoor 8.8 – (7.6) 2 – 1.1 Digital Investments 5.9 – – (0.2) 5.7 Corporate (9
Slide 33: AASB 16 Leases – 2021
AASB 16 Leases – 2021 AASB 16 AASB 16 AASB 16 Result Leases Reported Leases Leases without A$ million Adjustment 2021 Adjustment Adjustment adoption of Digital ARN HK Outdoor AASB 16 Investments ARN 53.8 (3.5) – – 50.4 HK Outdoor 10.5 – (9.2)2 – 1.3 Digital Investments 5.6 – – (0.1) 5.5 Corporate (1
Slide 34: HT&E Limited / ABN 95 008 637 643
34 HT&E Limited / ABN 95 008 637 643