SCA 2024 Annual Report

Despite challenging advertising market conditions, our improved financial performance in the second half has provided strong momentum into FY25. Our national leadership in the core buying demographics for men and women aged 25-54 provides our sales teams with a strong platform for continued growth into FY25.

In the fast-growing digital audio sector, LiSTNR reached over two million signed-in and addressable users, with around one million of these interacting with LiSTNR monthly. This is testament not only to the range of engaging content on LiSTNR but also to the excellent and personalised user experience the platform delivers.

The LiSTNR AdTech Hub is driving premium commercial returns for our advertisers and driving growing interest. The LiSTNR AdTech Hub

enhances our advertisers' ability to connect with relevant audiences on LiSTNR and other digital audio distribution platforms.

Against the backdrop of inflationary pressures, we kept non-revenue- related costs to $308.4 million (excluding non-recurring items), and we are activating further meaningful and permanent cost reductions for FY25.

We have re-commenced a strategic review of our non-core regional television assets and are in active negotiations with several parties with an interest in acquiring those assets. The sale of our regional television assets will enable us to focus on optimising our leading radio and digital audio assets, led by LiSTNR, HIT and Triple M.

Amounts stated to be 'underlying' exclude the $326.1 million ($228.3 million after tax) non-cash impairment of the Broadcast Radio Cash Generating Unit (CGU) in FY24, and other significant items in both periods relating to restructuring, corporate activity, and non-recurring items.

Contents

8.71M*

Total FM, AM and DAB+ audience

5.80M*

Total Hit FM and DAB+ audience

4.61M*

Total Triple M FM and

DAB+ audience

3.29M**

Total TV reach

1.75M***

Average monthly unique

radio streamers

15.8M***

Average monthly streaming total

listening hours

7.27M^

Average monthly unique

podcast listeners

2.08M^^

Total LiSTNR signed-up users

The Board decided not to pay a final dividend for FY24. While the group's leverage remains well within our banking covenants, the Board considers that preserving cash to reduce the group's net debt is in the best interests of shareholders. The Board expects to maintain this capital management position in FY25 while resuming payment of dividends towards the lower end of the target payout range (65% to 85% of underlying net profit after tax).

During the year, we were disrupted by the non-binding indicative proposal received in October 2023 from the Consortium of ARN Media and Anchorage Capital Partners. The proposal was complex, requiring the break-up of highly integrated radio and other assets of SCA and ARN to re-allocate them to the members of the Consortium and to a new digital joint venture. Most of the consideration for SCA shareholders would have been shares in a reconstituted ARN which was difficult to value. Our Board and executive team engaged with the Consortium's proposal for nearly seven months, only for the Consortium to withdraw its proposal in May 2024. I expressed my frustration at the time that the Consortium should have identified any potential material concerns much earlier in the process. While our management team did not lose focus on daily business activities during this process, it did mean that some business transformation initiatives were paused or slowed until the outcome of the Consortium's proposal was known.

Three longstanding Directors have retired from the Board this year. My predecessor as Chair, Rob Murray, along with Glen Boreham retired on 27 March 2024 and Helen Nash retired on 30 September. Each of them served on our Board for around nine years during which they made valuable contributions to the Board's decision-making, as well as being active on the Board's committees. Helen chaired the Board's People and Culture Committee for three years, and Glen chaired the Digital Transformation Committee for a similar period.

I would particularly like to acknowledge the contribution of Rob, who became Chair in the middle of the lockdowns and other challenges of the COVID-19 pandemic and led a process to refresh the Board and plan for future succession. Rob also helped drive SCA's executive succession planning that has seen changes in the roles of CEO and several other members of SCA's senior leadership team in the past two years.

We were delighted on 1 October to welcome Marina Go as a director and as Chair of the People and Culture Committee. Marina brings experience in executive and non-executive roles across a range of listed and private companies in diverse sectors including media.

As outlined in the report of our CEO, John Kelly, SCA is focused on the future. Broadcast advertising markets remain inconsistent and short, but we are well positioned to profitably grow our share of those markets while we continue to lead the local market in the high-growth digital audio sector. Our restructured commercial teams are consistently growing SCA's share of metro radio advertising revenues, and we continue to connect advertisers to the largest radio audience in regional Australia. We have completed our major digitisation capex cycle and are seeing rewards from advertisers who can connect with targeted and addressable audiences through LiSTNR.

Our regional television assets continue to operate profitably but are no longer core to our audio-focused business. Shareholders will be aware that we are in active negotiations with several parties with an interest in acquiring those assets.

On behalf of the Board, I would like to thank our many stakeholders including our people, advertisers, partners, and the communities we serve around Australia for your ongoing support of SCA. In particular, I extend my thanks to you, our shareholders, for your patience and trust as we commit to delivering you improved returns in future periods.

I trust you will enjoy reading our annual report.

Despite these achievements, shareholders will be acutely aware that we fell short of our revenue and profitability targets in FY24. Broadcast advertising markets were especially challenging during the first half of the year, and it is clear we need to continue to grow our share of those markets, exploit our local leadership in digital audio markets, and transform our operating model to further reduce our cost base and improve commercial returns. I am confident we have the right strategy in place to do all those things.

SCA is all about audio. This includes broadcast and livestreamed radio, music streaming, and on-demand podcasts.

Radio is a resilient and powerful medium. The Infinite Dial Australia study in June 2024 found that 81% of Australians aged 12+ listen to radio each week, compared to 77% who watch free-to-air television. SCA's national Triple M and Hit Networks have large and loyal audiences in the segments that are most attractive to advertisers. In the most recent official metro radio survey in August 2024, SCA's metro stations recorded a total cumulative audience of 5.881 million listeners (including DAB+). Our national Drive show on the Hit Network, Carrie and Tommy, was number one nationally in early Drive and, for the fourth survey in a row, number one in Melbourne and Brisbane. The Fox was the most listened-to station in Australia and, for the sixth survey in a row, the most listened-to station in Melbourne. B105 was the number one FM station in Brisbane for the fifth survey in a row, Triple M was the number one FM station in Adelaide and its Breakfast show topped the survey for the twelfth consecutive time.

SCA is acutely focused on the audiences that matter to our advertisers. We provide compelling content to our audiences and work with our advertisers to provide meaningful commercial outcomes for them and for SCA.

The audiences that matter to our advertisers in metro radio are the key 25-54 Men, Women and overall buying demographics, with over 70% of agency briefs targeting these segments. For the last three years (25 consecutive surveys), our Networks have recorded the largest metro radio audiences in these segments. Since changing our commercial leadership and structures in 2023, we are increasingly converting our dominance of these audiences towards a corresponding share of advertising revenues. As mentioned earlier, we grew our commercial share of metro radio advertising in every month from December 2023 to June 2024.

SCA has unrivalled reach in regional radio markets. Our Triple M and Hit Network stations, along with partner radio stations for whom we provide national sales representation, connect advertisers to 3.56 million listeners in regional Australia. This scale is what matters to national advertisers in regional Australia.

Our LiSTNR digital audio ecosystem is our growth engine. Just three years since launch, it has become the leading local player in the fastest growing advertising segment in Australia.

The 2024 Infinite Dial study found that 77% of Australians aged 12+ listen to digital audio each week, and 27% listen to livestreamed radio, up from 15% in 2022. The study also found that 48% of Australians aged 12+ listen to podcasts each month, up from just 25% in 2020. We are seeing similar and encouraging growth patterns on LiSTNR. We now have over two million signed-up users, over half of whom interact with LiSTNR each month. Stream starts on LiSTNR grew 17% and time spent listening grew 7% during FY24. This is testament not only to the range of engaging content on LiSTNR but also to the excellent and personalised user experience delivered by LiSTNR.

This growth in audience, coupled with our strategic investment in the LiSTNR AdTech Hub, is driving inquiry from advertisers willing to pay a premium to connect their messages to targeted and addressable audiences. The LiSTNR AdTech Hub is now included in over 20% of digital audio campaigns.

LiSTNR achieved revenues of $35 million in FY24 with year-on- year growth of 27% in the first half and 57% in the second half, LiSTNR delivered positive EBITDA in the final quarter of the year and is continuing that trajectory. With our major capex program now complete, we forecast LiSTNR to be cash flow positive in FY25. Put simply, SCA's LiSTNR is Australia's largest and fastest growing local operator in the fastest growing segment in Australian media.

Our regional television business dragged on our results again. Television revenue declined by 8.7% to $97.5 million, and EBITDA decreased by 28.9% to $13.3 million, although these declines slowed in the second half of the year. We maintained tight cost controls but

are exposed to CPI cost escalation in broadcasting transmission and playout contracts. We will actively progress opportunities to divest our television assets in the coming months.

I am excited about the opportunities ahead and confident that we will deliver improved financial performance in FY25 and beyond. We will continue to transform and optimise our audio operations to drive efficiency with further meaningful and permanent reductions to our cost base. Our Triple M and Hit radio networks have strong content and engaged audiences, and a growing share of commercial returns. LiSTNR has a high quality and diverse range of livestreamed and on-demand podcast content and sophisticated ad-tech capability to drive commercial returns for advertisers. With our major capex cycle complete, we will improve the conversion of our revenue to earnings and cash flow to de-leverage our balance sheet and provide returns for shareholders.

Finally, thank you to all our shareholders, advertisers, communities and employees for your ongoing support.

30%

20%

H2 Metro Radio Revenue Market Share1

FY23 FY24

SCA Network Commercial Audience Share

Carrie & Tommy

Metro and National

#1 metro drive show 3-6pm P10+1

Highest drive show cume nationally P25-54:

1,505,400 and P10+ 2,693,7002

+13.3% growth YoY P10+ metro share3

Fifi, Fev & Nick

#1 breakfast show in Melbourne P25-544

Most listened-to breakfast show in Melbourne in the past 12 months P10+5

In Sydney, Mick and MG have steadily built their Triple M Breakfast audience over the past two years, particularly for men aged 25-54, while 2DayFM continues to present opportunities for growth. We recently farewelled Hughesy, Ed and Erin after three-and-a-half years of waking up Sydney, and 2DayFM's listeners now have Jimmy & Nath for Breakfast, while Mike E & Emma have taken over national shifts on Nights during the week and Breakfast on the weekend. Both shows are well known to Sydney and national audiences, and we're looking forward to building their success.

Sport continues to be part of Triple M's DNA, and we have been delighted with the audiences for Triple M's coverage of AFL and NRL in the 2024 season. In metro survey 5/2024, Triple M had the largest weekend radio audiences for AFL and NRL. And, after an outstanding international cricket season in 2023/24, we were pleased to reach agreement with Cricket Australia to extend our coverage of international cricket in Australia until 2031.

Stav, Abby & Matt

+19% growth YoY P10+8

Roo, Ditts & Loz

#1 breakfast show in Adelaide P10+9

#1 breakfast show in Adelaide P25-54+10

12 in a row since S2 202311

The breadth of SCA's networks distributing radio and digital audio content to our audiences is a key differentiating factor for advertisers. SCA has 10 metro radio stations and 78 regional radio stations; in both cases, more than any other network. In metro markets and some large regional markets, our Triple M and Hit Networks also offer a suite of DAB+ music-focused stations. These provide more choice for music fans and incremental audiences for our advertisers. And all these stations are available around Australia on our LiSTNR app and website.

SCA has unrivalled scale and reach in regional radio markets, which we call Boomtown. Our Triple M and Hit Network stations, along with partner radio stations for whom we provide national sales representation, connect advertisers to 3.56 million listeners in regional Australia. With the addition of our representation of the ACE Radio network, the reach of SCA's regional audience has grown 25% in the past five years. This scale, and the associated buying efficiency, is what matters to national advertisers in regional Australia.

1. GfK Radio 360 Metro Survey #5 2024, P10+, Total Radio, Market Share %, Mon-Fri 3-6pm.
2. GfK Radio 360 Metro Survey #5 2024, all regional and provincial markets relative to this date, P10+/P25-54, Total Radio, Cume Reach, Mon-Fri 3pm-6pm (metro and provincial)/Mon-Fri 4-7pm (regional).
3. GfK Radio 360 Metro Survey #6 2023 vs Metro Survey #5 2024, P 10+, Total Radio, Market Share %, Mon-Fri 3pm-6pm.
4. GfK Radio 360 Melbourne Survey #5 2024, P25-54, Total Radio, Market Share %, Mon-Fri 5:30am-9am.
5. Based on average Cumulative Audience for 12 months, GfK Radio 360 Melbourne Survey #6 2023 - Melbourne Survey #5 2024, P10+, Total Radio, Cumulative Audience #, Mon-Fri 5:30am-9am.
6. GfK Radio 360 Brisbane Survey #5 2024, P10+, Total Radio, Market Share %, Mon-Fri 5:30am-9am.

1. GfK Radio 360 Brisbane Survey #5 2024, P25-54, Total Radio, Market Share %, Mon-Fri 5:30am-9am.
2. GfK Radio 360 Brisbane Survey #6 2023 vs Brisbane Survey #5 2024, P10+, Total Radio, Market Share %, Mon-Fri 5:30am-9am.
3. GfK Radio 360 Adelaide Survey #5 2024, P10+, Total Radio, Market Share %, Mon-Fri 5:30am-9am.
4. GfK Radio 360 Adelaide Survey #5 2024, P5-54, Total Radio, Market Share %, Mon-Fri 5:30am-9am.
5. GfK Radio 360 Adelaide Survey #2 2023 - Adelaide Survey #5 2024, P10+, Total Radio, Market Share %, Mon-Fri 5:30am-9am.

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