Important Notice and Disclaimer expectations about the performance of its businesses. likelihood of achievement or reasonableness of any Forward looking statements can generally be identified by forward looking statements, forecast financial information This document is a presentation of general background the use of forward looking words such as, ‘expect’, or other forecast. Nothing contained in this presentation nor information about the activities of Nine Entertainment Co. ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, any information made available to you is, or shall be relied Holdings Limited (“NEC”) current at the date of the ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, upon as, a promise, representation, warranty or guarantee presentation, (22 August 2019). The information contained ‘estimate’, ‘target’ and other similar expressions within the as to the past, present or the future performance of NEC. in this presentation is of general background and does not meaning of securities laws of applicable jurisdictions. purport to be complete. It is not intended to be relied upon Indications of, and guidance on, future earnings or as advice to investors or potential investors and does not Pro Forma Financial Information financial position or performance are also forward looking take into account the investment objectives, financial The Company has set out in this presentation certain non- statements. situation or needs of any particular investor. These should IFRS financial information, in addition to information be considered, with or without professional advice, when Forward looking statements involve inherent risks and regarding its IFRS statutory information. deciding if an investment is appropriate. uncertainties, both general and specific, and there is a risk The Company considers that this non-IFRS financial that such predictions, forecasts, projections and other NEC, its related bodies corporate and any of their information is important to assist in evaluating the forward looking statements will not be achieved. Forward respective officers, directors and employees (“NEC Company’s performance. The information is presented to looking statements are provided as a general guide only, Parties”), do not warrant the accuracy or reliability of this assist in making appropriate comparisons with prior periods and should not be relied on as an indication or guarantee information, and disclaim any responsibility and liability and to assess the operating performance of the business. of future performance. Forward looking statements involve flowing from the use of this information by any party. To the For a reconciliation of the non-IFRS financial information known and unknown risks, uncertainty and other factors maximum extent permitted by law, the NEC Parties do not contained in this presentation to IFRS-compliant which can cause NEC’s actual results to differ materially accept any liability to any person, organisation or entity for comparative information, refer to the Appendices of this from the plans, objectives, expectations, estimates and any loss or damage suffered as a result of reliance on this presentation. intentions expressed in such forward looking statements document. All dollar values are in Australian dollars (A$) unless and many of these factors are outside the control of NEC. otherwise stated. As such, undue reliance should not be placed on any Forward Looking Statements forward looking statement. Past performance is not This document contains certain forward looking statements necessarily a guide to future performance and no and comments about future events, including NEC’s representation or warranty is made by any person as to the 2
HUGH MARKS C H I E F E X E C U T I V E O F F I C E R 3
STRONG OPERATIONAL PERFORMANCE TELEVISION METRO MEDIA 9NOW STAN DOMAIN RADIO Dominance of Growth in advertising 50%+ revenue growth >1.7m active subs Yield and depth Audiences strong in a targeted demo with and subscription plus as 9Now leads the growth, and strong cost difficult ad climate 39.3% ratings share EBITDA positive in H2 cost controls >65% BVOD market focus, in cyclically (primary channel, prime time) EBITDA growth challenging property #1 share Metro FTA market revenue (+1.0pt) 4
10% EBITDA GROWTH 1 0 FY18 Group Broadcasting Digital & Stan Domain Corporate Associates FY19 Group EBITDA Publishing EBITDA 5 1 Continuing business, Pro Forma basis
INCREASED CONTRIBUTION FROM GROWTH ASSETS Revenue contribution 1 - FY18 Revenue contribution 1 - FY19 54% 84% Broadcasting Digital & Publishing Stan Broadcasting Digital & Publishing Domain Stan 1 Pro Forma basis, economic interest adjusted 6
GREG BARNES C H I E F F I N A N C I A L O F F I C E R 7
ACCOUNTING IMPLICATIONS OF MERGER WITH FAIRFAX Implementation date of the merger was 7 December 2018. • The Reported/Statutory results include the contribution from the Fairfax businesses from • implementation date and have been adjusted for the impact of Purchase Price Accounting during the period since acquisition. The Pro Forma results consolidate the results for the former Nine and Fairfax businesses for the • full 12 months, including the consolidation of Stan, which is now wholly owned. Results include synergies realised since the transaction was completed. Interest costs associated with the transaction are also for the period from completion. The Pro Forma results exclude Purchase Price Accounting to best demonstrate underlying • performance relative to prior year and guidance given in February. Reconciliation in Appendix 1 & 2. Pro-forma results are presented for Continuing Operations and exclude Australian Community • Media and Printing (ACM), Stuff New Zealand and Events, which are separately classified as Discontinued operations. The Pro Forma results also exclude Specific Items. • 8
REPORTED RESULTS 1 GROUP GROUP GROUP NPAT 2 REVENUE EBITDA $1.8B $350M $187M A$M FY19 FY18 VARIANCE REVENUE 2 1,848.1 1,318.2 +40% GROUP EBITDA 2 349.9 257.2 +36% EBIT 2 276.2 220.5 +25% GROUP NPAT 2 187.1 156.7 +19% STATUTORY NET PROFIT, CONTINUING 216.6 209.7 +3% OPERATIONS, INCLUDING SPECIFIC ITEMS DISCONTINUED BUSINESSES 17.3 - NM TOTAL STATUTORY NET PROFIT, INCLUDING 233.9 209.7 +12% DISCONTINUED AND SPECIFIC ITEMS BASIC EARNINGS PER SHARE 2,3 - CENTS 13.1 18.0 -28% Refer to glossary in Appendix 9 for definitions. Totals may not add due to rounding. 1 includes contribution from Fairfax from implementation 2 Before Specific Items 3 After minorities 9
SPECIFIC ITEMS A$M, CONTINUING BUSINESS BASIS H1 FY19 H2 FY19 FY19 RESTRUCTURING & TERMINATION RELATED COSTS (29.6) (7.0) (36.6) ACQUISITION RELATED COSTS (13.8) (7.4) (21.2) GAIN ON PROPERTY/ASSET SALES 9.4 - 9.4 GAIN ON CONSOLIDATION OF STAN 93.0 - 93.0 ACCOUNTING IMPAIRMENT ON CARADVICE/DRIVE MERGER 1 - (17.7) (17.7) OTHER 2 - (10.0) (10.0) TOTAL SPECIFIC ITEMS BEFORE TAX 59.0 (42.0) 16.9 TOTAL TAX RELATING TO SPECIFIC ITEMS 3.8 8.7 12.6 NET SPECIFIC ITEMS AFTER TAX 62.8 (33.3) 29.5 Refer to glossary in Appendix 9 for definitions. Totals may not add due to rounding. 10 1 Net effect of the accounting adjustments resulting from CarAdvice’s scrip based acquisition of Drive. 2 Other includes specific items reported by listed subsidiaries and settlements relating t o prior years
P R O F O R M A G R O U P R E S U LT S C O N T I N U I N G B U S I N E S S B A S I S 11
PRO FORMA COMBINED GROUP RESULTS DIVIDEND GROUP GROUP EPS 10 CENTS, EBITDA NPAT 11.6 CENTS FULLY $424M $198M UP 16% FRANKED A$M, CONTINUING BUSINESS BASIS FY19 FY18 VARIANCE REVENUE 2,341.7 2,364.0 -1% GROUP EBITDA 423.8 385.1 +10% EBIT 338.5 308.0 +10% NPAT 224.8 205.9 +9% GROUP NPAT (AFTER MINORITIES) 198.3 170.6 +16% EARNINGS PER SHARE - CENTS 11.6 10.0 +16% DIVIDEND PER SHARE - CENTS 10.0 9.0 +11% Refer to glossary in Appendix 9 for definitions. Totals may not add due to rounding. 12 Before Specific Items
PRO FORMA COMBINED GROUP DIVISIONAL RESULTS Revenue 1 contribution - FY19 TOTAL FY19 DIGITAL & BROADCASTING DOMAIN STAN CORPORATE ASSOCIATES INTERSEGMENT CONTINUING A$M PUBLISHING BUSINESS REVENUE 1,221.8 637.3 335.6 157.1 19.1 - (29.2) 2,341.7 PCP 1,290.8 619.6 357.3 96.8 18.9 - (19.4) 2,364.0 Broadcasting Domain Digital & Publishing Stan % CHG -5% +3% -6% +62% +1% - -51% -1% EBITDA 1 contribution - FY19 EBITDA 240.6 130.1 98.0 (21.3) (20.7) (2.9) - 423.8 PCP 270.8 83.5 117.5 (48.5) (39.8) 1.5 - 385.1 % CHG -11% +56% -17% +56% +48% - - +10% Broadcasting Domain Digital & Publishing 1 Pro Forma basis, economic interest adjusted Excludes Corporate and Stan Refer to glossary in Appendix 9 for definitions. Totals may not add due to rounding. 13
BROADCAST Revenue contribution 1 - FY19 A$M FY19 FY18 VARIANCE REVENUE TELEVISION 1,090.0 1,154.4 -6% RADIO 131.7 136.4 -3% 54% TOTAL REV 1,221.8 1,290.8 -5% COSTS TELEVISION 876.6 916.2 +4% RADIO 104.6 103.8 -1% EBITDA contribution 1,2 - FY19 TOTAL COSTS 981.2 1,020.0 +4% EBITDA TELEVISION 213.4 238.2 -10% 55% RADIO 27.2 32.6 -17% TOTAL EBITDA 240.6 270.8 -11% Refer to glossary in Appendix 9 for definitions. Totals may not add due to rounding. 1 Economic interest adjusted basis 2 Excludes Stan, corporate 14
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