ARN MEDIA LIMITED — Annual Report 2020

Feb 23, 2021

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Full Year Results 2020 24[th] February 2021

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HT&E Limited ABN 95 008 637 643

Reported result

• Advertising markets impacted as pandemic hit all sectors across the advertising market

• Revenue from continuing operations down 22% (H1 down 29%, H2 down 14%)

• Reported EBITDA down 35% to $49.3m (H1 down 49%, H2 down 20%)

• NPAT and underlying EPS down 55% and 54% respectively

• JobKeeper excluded from underlying results

• Final dividend suspended to preserve capital

HT&E Reported Result

HT&E Reported Result
A$ million	2020	2019	% change
			reported
Revenue from continuing operations	197.3	252.7	(22%)
EBITDA1	49.3	75.6	(35%)
EBIT1	32.5	56.9	(43%)
NPAT attributable to HT&E	15.4	34.2	(55%)
shareholders1
Underlying EPS1	5.5	12.0	(54%)

(1) Before exceptional items

• ATO Branch matter – we remain confident in our position and are prepared to pursue the matter fully through litigation

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Strong performance in a year like no other

Emerged a stronger business by strengthening core radio operations and building momentum into digital audio growth

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Strengthening broadcast radio
+12% growth in Reaching 5.3m
#1 Rating
Network listening per week
Out-performing
Grew
#1 Breakfast the market all
commercial
Network year
share
Source :
S8 2020, SMBAP, Comm Gps (AM/FM), M-S 5:30-12mn, share %, P10+
S8 2020, SMBAP, ARN (AM/FM/DAB+), M-S 5:30-12mn, cume, P10+
GfK Radio Ratings; Survey ave 2020 v 2016, SMBAP, ARN (AM/FM), M-S 5:30-12mn, cume, P10+
S8 2020, SMBAP, Comm FM Gps, M-F 5:30-9am, share %, P10+
S8 2020, Sydney, KIIS 1065 v Comm FM Stns M-F 5:30-9am, share %, P10+
S8 2020, Melbourne, GOLD v Comm FM Stns, M-F 5:30-9am, share %, P10+
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Building momentum in digital audio
+14% growth in
iHR app
downloads
+19% growth in Over 15m
#1 podcast
registered users downloads a
publisher
month
5 of top 10
podcasts in the
country
RADIO. MUSIC. PODCASTS
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iHeartRadio: App Downloads, Dec 2020 v Dec 2019 iHeartRadio: Lifetime Registered Users, Dec 2020 v Dec 2019 Triton Podcast Ranker, Nov 2020

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Broadcast Radio is still booming

In a year dominated by COVID-19, the loss of advertising spend came at a time when listening to Radio is at an all-time high and audiences more engaged than ever.

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Record High Unprecedented REACH AVAILABILITY

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Championing Human CONNECTION

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Strong Foothold In REVENUE

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COLLABORATION

Australian Metro Commercial Radio audiences grew by 2% to a record high of nearly 11.1m listeners in 2020.

YOY ARN Station listening increased by 65% on digital devices (desktop & laptops, mobile and smart speakers).

Listeners of radio in-home increased by 8% to 6.4m in 2020 – reflecting Radio’s role as the ultimate companion media.

Despite audio listening diversification, Broadcast Radio maintained its 8% share of revenue in latest SMI YOY.

Recruitment of Chief Commercial Officer to drive increased share of advertising revenue.

GfK Radio Ratings, Surveys 1-2, 6-8 2020, SMBAP, Cume 000s, Total People 10+, Mon-Sun 12mn-12mn, all commercial listening (incl. commercial DAB+ stations). Comparisons made with Surveys 1-2, 6-8 2015 and 2019 Standard Media Index Australia – December 2020 vs December 2019, Share of Total Revenue

Adswizz Audiometrix: TLH Devices: Desktops & Laptops, Mobiles & Tablets, Smart Speakers (Smart Speakers includes Chrome ‘Digital Devices’), ARN Stations, 2020 v 2019 App Annie – Mobile Minute: Next generation of Social Media Apps: Social Audio Apps, 18 February 2021

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Winning commercial share

• Providing the most complete audio offering for listeners and advertisers

• ARN outperforming the market

• Talent drives both ratings success and commercial integration

• Retention of revenue was key focus during COVID-19

• Maintaining value of inventory; stronger position as we move into recovery mode

• Average Unit Rate down ~10% in a market back 25%

Market Growth vs ARN Growth

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0.0%
-10.0%
-20.0%
-30.0%
-40.0%
-50.0%
Q1 20 Q1 20 Q3 20 Q4 20
Radio Market ARN
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Source: CRA – Commercial Metropolitan Radio Ad Revenue (compared to ARN radio performance)

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Real momentum in digital audio

Audience appetite for audio consumption is growing in BOTH broadcast radio and digital audio formats

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Growth in Consumption [(1)]
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Digital Innovation and technology stack
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Growth in Revenue [(2)]
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2020 REVENUE GROWTH
1,400
1,200
1,000
800
600
400
200
-
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
PARTNERSHIPS & ARN SITES STREAMING PODCASTS
REVENUE ($000s)
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Source :

(1) Source: AdsWizz, CY19 vs CY20, Total Listening Hours | Source: Adobe Analytics, CY19 vs CY20 | Source: Megaphone Australia, Jan20 vs Jan21 (2) ARN Digital revenues by type Jan to Dec 2020

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Financial results

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Statutory results

• Revenue down $55.4m (22%)

• Advertising spends significantly impacted by COVID-19

• Disposal of non-core assets contributed ~$9m decline; minimal impact on earnings

• Costs down $30.3m (16.2%)

• One-off cost measures contributed ~$13m

• $9m related to disposed businesses

• Remainder attributable to lower cost of sales on reduced revenues

• Underlying EBITDA down 35%

• Tax expense includes $1.7m true up on FY18 tax return. Effective tax rate on underlying AU operations of ~28% (2019: 29%)

• Exceptional items include JobKeeper funding of $10.3m (1[st] round funding only)

• Non-cash impairments of $64.3m taken June 2020 in ARN and HK Outdoor

• Underlying NPAT down 55%

A$ million	2020 Reported	2019 Reported
Revenue before finance income	197.3	252.7
Other income	2.1	6.7
Share of associate profits	6.0	2.5
Costs	(156.0)	(186.2)
Underlying EBITDA1	49.3	75.6
Depreciation and amortisation	(16.8)	(18.8)
Underlying EBIT2	32.5	56.9
Net interest expense	(3.8)	(2.3)
Net profit before tax1	28.7	54.6
Taxation on net profit	(10.3)	(16.1)
Net profit after tax (NPAT)1	18.5	38.5
Less non-controlling interest	(3.1)	(4.3)
NPAT attributable to HT&E shareholders1	15.4	34.2
Exceptional items net of tax	6.5	(48.4)
Impairment of intangible assets	(64.3)	–
NPAT attributable to HT&E shareholders	(42.5)	(14.2)
Underlying EPS (cps) 1	5.5	12.0
Final dividend per share (cps)	–	4.6

• (1) Before exceptional items

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ARN

• Widespread falls in global marketing and advertising activity, with all advertising sectors materially impacted

• Radio revenue down 21% ahead of market (-25.2%)

• Consistent commercial share gains, not through excessive discounting

• Digital audio revenues up 122%, after adjusting for non-core disposals (~$9m FY20 rev & cost impact)

• Momentum in podcasting and streaming revenues

• Total costs down 10% on a like basis (exc. non-core disposals)

• Costs of sales down on lower revenues

• People costs down 1% savings program offsetting contracted increases

• Operating costs down $8.9m (26%) – one-off cost measures

• Perth JV (Nova 93.7) accounted as an associate; 2019 included in Income

• EBITDA down 37% on last year

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A$ million	2020	2019	% Change	% change
				Excl iNC
				and The
				Roar
Radio	165.1	208.4	(21%)	(21%)
Digital & other	10.2	14.9	(32%)	122%
Total revenue	175.3	223.3	(22%)	(18%)
Income	0.7	6.2	(88%)	(88%)
Total revenue and income	176.0	229.5	(23%)	(20%)
Cost of sales	(30.1)	(40.9)	(26%)	(15%)
People costs	(77.2)	(80.9)	(4%)	(1%)
Operating costs	(25.2)	(34.4)	(27%)	(26%)
Total costs	(132.5)	(156.2)	(15%)	(10%)
Share of associates NPAT	2.7	–	N/A	N/A
EBITDA	46.2	73.3	(37%)	(37%)
D&A	(6.8)	(6.8)	(1%)	(1%)
EBIT	39.5	66.5	(41%)	(41%)
EBITDA margin	26%	33%
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Soprano

• HT&E ~25% interest

• Continued revenue and EBITDA growth

• Increased gross profit margin

• Minor acquisition of Silverstreet (Singapore) completed in December - provides growth platform into Asia

• Potential to provide significant value beyond current book value ($19.8m) to HT&E shareholders

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A$ million	LTM	LTM	% change
	2020	2019
Revenue	75.6	68.2	11%
Cost of sales	(27.7)	(27.6)	0%
Gross profit	47.9	40.6	18%
Staff costs	(18.0)	(17.8)	1%
Operating costs	(4.5)	(5.2)	(13%)
Total costs	(22.5)	(23.0)	(2%)
EBITDA	25.5	17.6	45%
GP margin	63%	60%
HT&E share of NPAT	3.3	2.5	29%

Soprano operates on a financial year ending June. Results for FY20 above have not been audited

Soprano – strong GP margins maintained

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Core business performing very well on all financial metrics

Annual Recurring Revenue[(3)]

Gross Profit

Impressive financial metrics[(1)]

Revenues exceeded $75m (+11%) 63% gross profit margin (+3% pts) Gross profit $47.9m (+18%) EBITDA $25.5m (+45%)[(2)]

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90 60
80
50
70
60 40
50
30
40
30 20
20
10
10
- -
CY18 CY19 CY20
GP GP Margin
EBITDA [(2)] Soprano Rule of 40
30 40% 60%
30%
20 40%
20%
20%
10
10%
0%
- 0%
CY19 CY20
CY18 CY19 CY20
Revenue growth Rule of 40
EBITDA EBITDA Margin
EBITDA Margin
Millions
Millions
Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
Millions
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60 64%
50 62%
40
60%
30
58%
20
10 56%
- 54%
CY18 CY19 CY20
GP GP Margin
Millions
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Source:

• (1) Unaudited management reports for the period ended 31 December 2020 (2) Unaudited underlying EBITDA before exceptional items

(3) ARR calculated as average of last 3 months * 12

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Hong Kong Outdoor - Cody

• Cody revenues heavily impacted by COVID-19 from commencement of the year

• Subsequent lockdowns stalling ad recovery

• Tram shelter revenues (Transit) worst effected, with commuter volumes significantly down

• Roadside revenues impacted to a lesser degree

• Total costs down 30% (local currency); comprising cost of sale reductions on lower revenues and a range of one-off cost measures

• Lower lease depreciation due to part impairment of advertising concession lease assets at June ($7.1m)

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				Local currency
A$ million	2020	2019	% change	% change
Roadside	12.0	16.6	(28%)	(29%)
Transit	4.5	8.3	(45%)	(46%)
Total revenue	16.5	24.8	(34%)	(35%)
Total costs	(8.8)	(12.4)	(29%)	(30%)
EBITDA	7.7	12.4	(38%)	(39%)
D&A	(0.1)	(0.1)	(14%)	(16%)
Depreciation – Leases	(9.8)	(11.3)	(14%)	(15%)
EBIT	(2.2)	1.0	>(100%)	>(100%)
EBIT margin	(14%)	4%

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Corporate costs

• Corporate cost base ~$10m in a normal year (excluding ~$2m costs of running ATO Branch dispute)

• One-off cost measures, including; 5-month salary reductions for Board and executive management

• FY20 incentives forgone as part of COVID-19 response. Minor cost attributable to FY19 scheme in current year

• Reduced compliance and advisor fees in-line with business simplification and exit from non-core investments in FY19

• Tax dispute costs reflect a reduced level of activity on ATO Branch dispute

A$ million	2020	2019	% change
Salary and wages	2.8	4.1	(32%)
Incentives provided for	0.3	1.0	(75%)
Board costs	0.7	0.8	(10%)
Compliance and advisor costs	1.8	3.0	(40%)
Tax dispute costs	0.9	1.8	(49%)
Overheads (rent, office, other)	1.9	2.1	(12%)
Total Corporate costs	8.3	12.8	(35%)

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Balance sheet

• Net cash position ~$112m remains very strong

• Deposit of tax in dispute:

• –

• Includes $51m deposit offset by $30m tax provision unchanged from 2019

• Reduced by $16.7m interest deductions on Branch dispute processed through FY18, FY19 and FY20 returns

• Amounts would be repaid on a successful outcome of matter

• Significant remaining balance sheet movements:

• H1 impairment ($54.2m) impacted intangible assets

• Other non-current assets includes; fair value of OML shares at 31 Dec ($45.9m), share of associates NPAT (+$6.0m) and part impairment of Nova 97.3 Perth investment (-$4.4m)

• Other current liabilities reflects successful exit from historical onerous contract ($4.8m)

• Lease liabilities reduction reflects standard lease payments

Reported Reported	Change
A$ million Dec 2020 Dec 2019	$
Cash and cash equivalents (incl deposits) 115.1 111.0	4.1
Receivables 43.9 45.7	(1.8)
Income tax receivable 1.6 3.3	(1.8
Other current assets 3.5 4.0	(0.5)
Property, plant & equipment 19.1 22.1	(3.1)
Right-of-use assets 31.2 51.0	(19.8)
Intangible assets 373.9 427.4	(53.5)
Deposit of tax in dispute, net of provision 3.9 20.7	(16.7)
Other non-current assets 102.3 60.1	42.1
Total assets 694.4 745.3	(50.9)
Payables 21.5 24.1	(2.6)
Other current liabilities 9.4 18.4	(9.0)
Bank loans 2.9 –	2.9
Lease liabilities 43.6 59.1	(15.5)
Deferred tax liabilities 120.0 108.6	11.3
Other non-current liabilities 4.8 5.2	(0.4)
Total liabilities 202.1 215.4	(13.3)
Net assets 492.2 529.9	(37.7)

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Cash flow

Operating cash inflow of $50.8m (+13%), impacted by:

• EBITDA down 35%

• $8.8m net cash on exceptional items (mainly JobKeeper $10.3m) offset by $7.1m non-cash share of Associates and working capital

• FY17 and FY18 refunds received in 2020 ($15.9m); majority relates to Branch matter interest deductions

• $3.2m settlement of NZ financing arrangement

Financing and investing cashflows include :

• Replacement capex only; normal capex ~$3.5m p/a

• $18.1m investment in oOh!media

A$ million Dec 2020	Dec 2019
EBITDA 49.3	75.6
Net change in working capital, non-cash and exceptional items 1.7	(7.1)
Net interest received / (paid) (3.3)	(1.6)
Net tax amounts received / (paid) 6.3	(22.2)
Tax matter settlement (3.2)	–
Net operating cash flow before lease payments 50.8	44.8
Lease payments (principal) (14.3)	(13.5)
Net operating cash flow after lease payments 36.4	31.3
Capital expenditure (2.1)	(8.0)
Investments (18.1)	(2.3)
Cash received from associates and other entities 4.8	0.7
Net cash flow before financing 21.0	21.7
Payments for borrowing costs (0.0)	(0.3)
Payments for treasury shares (0.3)	(2.5)
Dividends paid to shareholders (12.8)	(22.8)
Share buy back (2.9)	(8.9)
Payments to non-controlling interests (3.9)	(4.7)
Net cash flow before debt items 1.0	(17.4)
Net proceeds of borrowing 3.3	–
Net cash flow excluding transfer to short-term deposit 4.3	(17.4)

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Platform for growth in 2021

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Strong platform for growth in 2021

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• Confidence in the advertising market returning; radio’s relevance remains strong

• High performing radio business; further growth opportunities in digital audio

• Highly cash generative business

• Strong balance sheet; $112m net cash

• 25% shareholding in Soprano is non-core; appointed Macquarie Capital to explore HT&E’s liquidity options

• Holder of 4.7% in OML; long term and committed shareholder

• 2020 accelerated trends in the media market

• Consumers – controlling what, where and how the consume content

• Advertisers – prioritising reach, ROI and accountability

• Media owners – improve scale, multi-platform distribution, data-led validation

• Optionality to explore the right opportunities

Trading update

ARN

Q1 revenue outlook continues to strengthen with current pacing for March indicating total revenues could finish flat on prior year. Revenue for January finished back 6.9% with pacing improving on this result for February, assisted by continued improvements in our broadcast radio performance and growth across our digital assets.

We are encouraged by early briefing activity for April and Q2 campaigns.

In respect of costs, we are reinvesting to drive growth by improving our digital and data capability, digital audio and podcast development, and the marketing of our brands. Subject to the advertising market recovery continuing, we anticipate total people and operating costs to be in line with 2019[(1).]

Hong Kong Outdoor - Cody

Q1 revenue trend consistent with H220. Reduced infections and the easing of restrictions in recent weeks is seeing parts of the economy open up and talk of mainland China tourism recommencing.

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(1) Before costs associated with disposed businesses (iNC & The Roar) in 2019 ($3.6m)

Appendices

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Reconciliation of segment result to statutory result

	Segment result		Exceptional items	Exceptional items	Statutory result
A$ million	2020	2019	2020	2019	2020	2019
Revenue before finance income	197.3	252.7	–	–	197.3	252.7
Other income	2.1	6.7	10.7	0.5	12.8	7.2
Share of associate profits	6.0	2.5	–	–	6.0	2.5
Costs	(156.0)	(186.2)	(62.8)	(25.1)	(218.8)	(211.3)
Underlying EBITDA	49.3	75.6	(52.0)	(24.6)	(2.7)	51.1
Depreciation and amortisation	(4.2)	(4.8)	–	–	(4.2)	(4.8)
Depreciation – Leases	(12.6)	(14.0)	–	–	(12.6)	(14.0)
Underlying EBIT	32.5	56.9	(52.0)	(24.6)	(19.5)	32.3
Net interest	(1.5)	0.1	–	–	(1.5)	0.1
Finance cost – Leases	(2.3)	(2.3)	–	–	(2.3)	(2.3)
Net profit before tax	28.7	54.6	(52.0)	(24.6)	(23.3)	30.0
Taxation on net profit	(10.3)	(16.1)	(5.5)	(23.8)	(15.8)	(39.9)
Net profit after tax (NPAT)	18.5	38.5	(57.6)	(48.4)	(39.1)	(9.9)
Less non-controlling interest	(3.1)	(4.3)	(0.3)	–	(3.4)	(4.3)
NPAT attributable to HT&E shareholders	15.4	34.2	(57.9)	(48.4)	(42.5)	(14.2)

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H1 and H2 performance

	H1	Revenue	H1	EBITDA	H2 Revenue	H2 Revenue		H2	EBITDA
		As		As			As		As
A$ million	2020	reported	2020	reported	2020	reported		2020	reported
Australian Radio Network	83.1	(28%)	18.1	(52%)	92.2		(15%)	28.1	(22%)
HK Outdoor	7.7	(43%)	3.5	(50%)	8.8		(23%)	4.2	(23%)
Digital Investments	2.2	(6%)	2.1	>100%	3.4		55%	1.7	(15%)
Corporate	–	–	(4.1)	(40%)	–		–	(4.2)	(29%)
Group eliminations	–	–	–	–	(0.1)		N/A	–	–
Total	93.0	(29%)	19.5	(49%)	104.2	(14%)		29.8	(20%)

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Exceptional items

• H1 non-cash impairments totalling $65.7m taken in ARN (goodwill), HK (goodwill and right-of-use advertising concessions), and Nova Perth JV (associate investment)

• Reversal of Unbnd onerous contract provision associated with FY19 disposal

• Government subsidies include JobKeeper and Hong Kong Government Employment Support Scheme subsidy

• Gfinity and Unbnd closure costs not deductible in FY19 tax return

A$ million	H1 2020	H2 2020	Dec 2020	Dec 2019
Impairment – Goodwill (ARN and HK)	(54.2)	–	(54.2)	–
Impairment – Right-of-use assets (HK)	(7.1)	–	(7.1)	–
Associate impairment – Nova Perth	(4.4)	–	(4.4)	–
Redundancies	(0.4)	(1.1)	(1.5)	(4.8)
Reclassification of foreign currency translation reserve	(0.4)	–	(0.4)	–
Government subsidies and grants	4.9	5.8	10.7	–
Costs related to the closure of Gfinity Esports Australia	–	0.4	0.4	(5.4)
Onerous contract provision adjustment (Unbnd)	0.6	4.3	4.8	–
Loss on sale of Unbnd	–	–	–	(13.4)
Loss on sale of The Roar	(0.3)	–	(0.3)	(1.5)
Dividend received by ARN from DRB	–	–	–	0.5
Exceptional items, gross of tax	(61.4)	9.4	(52.0)	(24.6)
Income tax expense on exceptional items	(0.1)	(2.6)	(2.8)	6.3
2019 income tax return true up	–	(2.7)	(2.7)	–
2016 and 2017 income tax return true up	–	–	–	2.9
Tax provision estimate – Branch matter	–	–	–	(30.0)
Tax provision estimate – legacy financing arrangement	–	–	–	(3.0)
Exceptional items, net of tax	(61.6)	4.0	(57.6)	(48.4)

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Cash flow – working capital

A$ million 2020	2019
Net changes in working capital (0.7)	2.5
Deduct non-cash items, share of associates NPAT net of cash / dividends from investments (6.4)	(4.1)
Recurring (7.1)	(1.6)
Redundancies (1.5)	(4.5)
Costs associated with diposal of The Roar (0.3)	–
JobKeeper (and other COVID-19 related subsidies) 10.7	–
Acquisition related incentive paid to Unbound JV partner –	(1.0)
Non-recurring 8.8	(5.5)
Net change in working capital, non-cash and exceptional items 1.7	(7.1)

Currency rates

	AUD / HKD	AUD / HKD
	2020	2019
June half year average	5.107	5.540
Full year average	5.360	5.448
Period end rate – June	5.351	5.487
Period end rate – Dec	5.964	5.467

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AASB 16 Leases – 2020

A$ million	Reported 2020	AASB 16 Leases Adjustment ARN	AASB 16 Leases Adjustment HK Outdoor	AASB 16 Leases Adjustment Digital Investments	AASB 16 Leases Adjustment Corporate	Result without adoption of AASB 16
ARN	46.2	(3.3)	–	–	–	43.0
HK Outdoor	7.7	–	(11.2)2	–	–	(3.6)
Digital Investments	3.8	–	–	(0.1)	–	3.7
Corporate	(8.3)	–	–	–	(0.2)	(8.5)
Underlying EBITDA1	49.3	(3.3)	(11.2)	(0.1)	(0.2)	34.5
Depreciation and amortisation	(16.8)	2.7	9.8	0.1	–	(4.2)
Underlying EBIT1	32.5	(0.6)	(1.4)	(0.0)	(0.2)	30.3
Net interest	(3.8)	1.3	1.0	0.0	0.0	(1.5)
Net profit before tax1	28.7	0.7	(0.4)	0.0	(0.2)	28.8

(1) Before exceptional items

(2) Inclusive of onerous contract provision release

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AASB 16 Leases – 2019

A$ million	Reported 2019	AASB 16 Leases Adjustment ARN	AASB 16 Leases Adjustment HK Outdoor	AASB 16 Leases Adjustment Digital Investments	AASB 16 Leases Adjustment Corporate	Result without adoption of AASB 16
ARN	73.3	(3.0)	–	–	–	70.3
HK Outdoor	12.4	–	(12.4)	–	–	0.0
Digital Investments	2.7	–	–	(0.1)	–	2.6
Corporate	(12.8)	–	–	–	(0.2)	(13.0)
Underlying EBITDA1	75.6	(3.0)	(12.4)	(0.1)	(0.2)	59.9
Depreciation and amortisation	(18.8)	2.4	11.3	0.1	0.1	(4.8)
Underlying EBIT1	56.9	(0.6)	(1.1)	0.0	(0.0)	55.2
Net interest	(2.3)	1.0	1.3	0.0	0.0	0.1
Net profit before tax1	54.6	0.4	0.3	0.0	(0.0)	55.2

(1) Before exceptional items

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Disclaimer

HT&E Limited (HT&E) does not accept any liability to any person, organisation or company for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations of HT&E concerning future results and events.

Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, material and equipment) that may cause HT&E’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.

HT&E uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are collectively referred to as “non-IFRS financial measures” and include EBITDA before exceptional items, EBIT before exceptional items and net profit before exceptional items.

Figures, amounts, percentages, prices, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

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HT&E Limited / ABN 95 008 637 643