F Y17 RE SUL T S T ue sda y 20 F e brua ry 2018
Age nda 2017 • Hig hlig hts • Re sults 2018 • Ob se rva tio ns Out-o f-Ho me industry – APN Outdo o r – • Co ntra c t re ne wa ls • F o c us a nd o b je c tive s • T ra ding upda te APN Outdoor Gr oup L imite d | 2017 F ull Ye ar Re sults | 20 F e br uar y 2018 2
2017 Highlights APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 3
2017 highlights DE L IVE RE D 38 ne w e lite d ig ita l b illb o a rd s ro lle d o ut • Sig nific a nt c o ntra c t re ne wa ls, e xpo sure fo r b o th 2018 a nd • 2019 re d uc e d to sing le d ig its Xtra c kT V vid e o ne two rk e xpa nsio n to Pe rth • Ca mpa ig n re po rting syste ms • Ca lib re NZ Aud ie nc e me a sure me nt syste m • T ra nsit F a c to r pro prie ta ry re se a rc h • APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 4
‘ 2017 IN NUMBE RS ’ APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018
F Y17 r e sults Re sults in line with g uida nc e Revenue 4% to $342.9m U nder lying E B I T DA (1) 4% to $90.3m U nder lying NPAT A (1) 2% to $53.0m Statutor y NPAT 9% to $44.0m (a fte r NRIs) U nder lying E PS (1) 3% to 30.0c ps 1% to 19.2c ps (fully franked) F Y17 Dividends L ever age 1.1x Und e rlying L T M E BIT DA (1) Unde rlying re sults e xc lude NRI s as pre se nte d at Appe ndix A No te : Pe rc e ntag e c hang e s ab o ve are ag ainst the F Y16 re po rte d re sults APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 6
Inc ome state me nt (under lying) $ millio ns F Y17 F Y16 Cha ng e Re ve nue 330.9 4% 342.9 • 4% re ve nue impro ve me nt re sulting Dire c t c o sts (1) (203.3) 3% (209.2) in 4% Unde rlying E BI T DA g ro wth 127.6 5% Gr oss mar gin 133.7 • Gro ss ma rg in impro ve d to 39% with re nt Gro ss Marg in 38.6% 39.0% a s a % o f re ve nue sta b ilising Ove rhe a ds (1) (40.9) 6% (43.4) • Ove rhe a d s inc re a se d b y 6% d rive n b y DA (2) 86.7 4% Unde r lying E BIT 90.3 c o ntra c t re ne wal c o sts E BI T DA Marg in 26.2% 26.3% • D&A re fle c ts inc re ase d c ape x spe nd and De pre c ia tio n & a mo rtisa tio n (12.8) 19% (15.2) asse t ac quisitio ns ac ro ss F Y16 a nd F Y17 (2) 73.9 2% Unde r lying E BIT 75.1 Ne t inte re st e xpe nse (2.9) 31% • Inte re st re fle c ts full ye a r impa c t o f (3.8) inc re a se d le ve ra g e Bo rro wing c o sts a mo rtisa tio n (0.3) 33% (0.4) T a x e xpe nse (21.5) (3%) (20.9) (2) 49.2 2% Unde r lying NPAT 50.0 Amo rtisa tio n (a fte r ta x) 2.6 15% 3.0 A (2) 51.8 2% Unde r lying NPAT 53.0 NPAT A Marg in 15.5% 15.7% (1) E le c tric ity and o the r c o sts dire c tly re late d to dig ital asse ts are no w inc lude d in dire c t c o sts; pre vio usly inc lude d in o ve rhe ads (prio r pe rio d re state d) (2) Unde rlying re sults e xc lude NRI s as pre se nte d at Appe ndix A APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 7
Re ve nue by for mat Comment F Y17 F Y16 % Re sult b e ne fits fro m dig itisa tio n a nd full ye a r impa c t Billb o a rds 176.7 160.8 10% o f a c q uisitio ns Stro ng re sult g ive n c urre nt la c k o f dig itisa tio n T ra nsit 100.2 99.5 1% o ppo rtunitie s L a rg e c lie nts re a llo c a ting mo ne y to o the r fo rma ts Airpo rts 40.6 43.8 (7%) Ac tio n pla ns in pla c e to a ddre ss Xtra c kT V ne two rk c o mple te in F Y17 Ra il 25.4 26.8 (5%) F Y16 re sult wa s a stro ng c o mpa ra tive T otal re ve nue 342.9 330.9 4% Yie lds a nd o c c upa nc y ho lding Cla ssic 214.3 216.9 (1%) (no rma lise d fo r dig ita l c o nve rsio ns) Dig ita l 128.6 114.0 13% Dig ita l is 38% o f to ta l re ve nue o n 125 E lite Sc re e ns T otal re ve nue 342.9 330.9 4% APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 8
Balanc e she e t $ millio ns 31 De c 2017 31 De c 2016 Chang e Stro ng b a la nc e she e t to pursue g ro wth • 16.9 Ca sh 19.0 (2.1) initia tive s Othe r c urre nt a sse ts 71.1 75.5 (4.4) L o we r ta x pro visio n d ue to timing o f • I nc o me ta x a sse t 0.2 - 0.2 pa yme nts Pro p e rty, p la nt a nd e q uip me nt 106.8 96.6 10.2 Wo rking c a pita l impa c te d b y timing – • I nta ng ib le a sse ts a nd g o o d will 255.5 256.4 95% c a sh re a lisa tio n e xpe c te d g o (0.9) fo rwa rd run ra te Othe r no n-c urre nt a sse ts 2.8 3.9 (1.1) Ne t d e b t inc re a se o f $14.9m re la te d to T otal asse ts 453.3 451.4 1.9 • c a pita l e xpe nd iture a nd wo rking T ra d e a nd o the r p a ya b le s (25.3) (31.7) 6.4 c a pita l I nc o me ta x p a ya b le (1.4) (12.5) 11.1 Ne w d e b t fa c ility o f $200m • Othe r c urre nt lia b ilitie s (4.1) (8.1) 4.0 Ca sh a va ila b le a nd und ra wn d e b t • Bo rro wing s (114.8) (102.7) (12.1) o f $75.1m Othe r no n-c urre nt lia b ilitie s (28.3) (27.2) (1.1) T otal liabilitie s (173.9) (182.2) 8.3 1.1x Ne t de b t / Unde rlying Ne t asse ts 279.4 269.2 10.2 L T M E BI T DA Cre dit me tric s Ne t d e b t (1) 84.0 98.9 (14.9) Ne t d e b t / Und e rlying L T M E BI T DA 1.1x 1.0x (1) Ne t de b t e xc lude s b o rro wing c o sts a nd inte re st ra te swaps APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 9
Cash flows and c ape x Ca sh c o nve rsio n ra tio o f 91% • $ millio ns F Y17 F Y16 T a x pa yme nts inc lud e fina l 2016 Austra lia n a nd NZ ta x o f ~ $13m • Unde rlying E BI T DA (1) 90.3 86.7 No n-re c urring ite ms T o ta l c a pe x o f $29.3m in F Y17 inc lud e s 38 ne w d ig ita l sc re e n b uild s (3.8) (0.4) • Wo rking c a pita l (4.6) 5.9 22 ne w d ig ita l sc re e ns in 2H17 • OCF b e fo re inte re st a nd ta x 81.9 92.2 $4.2m o f no n-site c a pe x • Cash c o nve r sion r atio 91% 106% Inte re st (3.4) (2.5) T a x pa yme nts (30.5) (23.4) Ope r ating c ash flow 48.0 66.3 OCF % 53% 76% Ne t de bt r oll for wa r d (1) Unde rlying re sults e xc lude NRI s as pre se nte d at Appe ndix A APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 10
‘ 2018 obse rva tions a nd pla ns ’ APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 11
2018 obse r vations Out-of-Home industr y L o ng te rm Ind ustry pro spe c ts re ma in ro b ust • ~6 % Of to ta l Austra lia n Aud ie nc e s c o ntinue to g ro w (1) • a dve rtising ma rke t Sig nific a nt g ro wth o ppo rtunity a s Out-o f-Ho me a c c o unts • fo r o nly 6% o f Austra lia n a d ve rtising ma rke t 47 % Of Austra lia n ma rke t As a n ind ustry we ne e d to b e tte r se ll the o ppo rtunity o f • re ve nue is dig ita l (2) Out-o f-Ho me Cla ssic a nd d ig ita l inve nto ry b o th ha ve the ir pla c e in the • 6.0 % AUma rke t (2) ma rke t g ro wth in 2017 Mo d e l a nd se lling o f d ig ita l b illbo a rd s ne e d s to b e • re c o nsid e re d 18.0 % NZ ma rke t (3) g ro wth in 2017 (1) So urc e Mo ve data indic ate d that 2017 Out-o f-Ho me audie nc e s g re w 2.2% (2) So urc e OMA data – De c e mb e r 2017 (3) So urc e s OMANZ data – De c e mb e r 2017 APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 12
2018 obse r vations APN Outdoor Pre mium in qua lity, lo c a tio n a nd pre se nta tio n So urc e : APN Outdo o r inte rnal marke t re se arc h APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 13
2018 foc us and obje c tive s 1. APO asse ts 3. Costs T he b e st po rtfo lio o f a sse ts a c ro ss Austra lia a nd L e a n c o st o pe ra to r o ve r la st fe w ye a rs • • Ne w Ze a la nd Inve sting in inno va tio n a nd te c hno lo g y to d rive • Ple nty o f o ppo rtunitie s re ma in in o ur po rtfo lio re ve nue • a nd o the r fo rma ts 2. Sale s 4. Mome ntum Ne e d to b e ‘ a ud ie nc e le d ’ ra the r tha n a sse t le d Busine ss lo st impo rta nt mo me ntum in 2017, • • pa rtic ula rly 2H17 F o c us o n winning b a c k ma rke t sha re • Stabilise , Re foc us, Win APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 14
F Y18 digital r ollout pr ogr amme F Y18 g uida nc e o f 20-25 E lite Sc re e ns a c ro ss Austra lia a nd Ne w Ze a la nd (no te : pho to mo nta g e o f ne w site s unde r de ve lo pme nt) Sur fe r s Pa r a dise Blvd , QL D T ulla ma r ine F r e e wa y, VIC Southe r n E xpr e sswa y, SA Pa r ne ll, NZ Swa nston Str e e t, VIC Pr inc e s Hig hwa y, NSW APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018 15
Signific ant c ontr ac t r e ne wals RE T AINE D Sydne y Buse s Vic to ria n Buse s Sydne y T ra ins Xtra c kT V MT M Ade la ide b use s, PT A (We st Ra il) Que e nsla nd Ra il T ulla ma rine F re e wa y tra ms & tra ins Yo ung & Ja c kso n L ow c ontr ac t r e ne wal e xposur e ac r oss F Y18 & F Y19 APN Outdoor Group L imite d | 2017 F ull Ye ar Re sults | 20 F e bruary 2018
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