NZME LIMITED — AGM Information 2017

Jun 21, 2017

ANNUAL SHAREHOLDERS MEETING

22 June 2017

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DISCLAIMER

he information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in T this presentation constitutes legal, financial, tax or other advice. This presentation constitutes summary information only, and you should not rely on it in isolation from the full detail set out in the Annual Report for the twelve months ended 31 December 2016.

This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections or forwardlooking statements in this presentation will be realised. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to you or to provide you with further information about NZME Limited.

A number of non-GAAP financial measures are used in this presentation, which are outlined in the reconciliations in the Annual Report for the

twelve months ended 31 December 2016.

You should not consider any of these in isolation from, or as a substitute for, the information provided in the audited Consolidated Financial Statements for the twelve months ended 31 December 2016.

While reasonable care has been taken in compiling this presentation, none of NZME Limited nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by law) gives any warranty or representation (express or implied) as to the accuracy, completeness or reliability of the information contained in it nor takes any responsibility for it. The information in this presentation has not been and will not be independently verified or audited.

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Welcome

PETER CULLINANE INDEPENDENT DIRECTOR

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AGENDA

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1. Chairperson’s address

2. Ordinary resolutions

3. Re-election of Director

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• Auditor’s remuneration

• General business and

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shareholder discussion

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NZME’S TRANSFORMATION & INTEGRATION

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VE B
C Listed on NZX Main Board
NEWS and ASX on 27 June 2016.
Demerged from APN
PRINT RADIO News & Media Limited
on 29 June 2016.
Transformed into an
audience-centric business
focusing on News, Sport
ENT. SPORT and Entertainment pillars.
S S Integrating our
sales and editorial
DIGITAL teams, facilitated
by NZME Central and
regional co-locations.
OREC ANNEL
C S
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NZME FY16 RESULTS SUMMARY

STATUTORY NPAT TRADING REVENUE[1] TRADING EBITDA[1] $74.5m $407.4m $71.9m 74% FY15 $42.9m ▼ 6% FY15 $433.0m 0%[FY15 $71.8m][2] PRO FORMA NPAT[1] PRO FORMA EPS[1] $27.8m 14.2cps 1% FY15 $27.5m FULL YEAR DIVIDENDS TOTALLED 9.5 cps (INTERIM 3.5cps, FINAL 6.0cps[3] )

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Fletch, Vaughan + Megan 6AM - 10AM WEEKDAYS

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(1) Trading Revenue, Trading EBITDA, Pro forma NPAT and Pro forma EPS are non-GAAP measures that are explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017. (2) The FY15 NZME segment result in the APN FY15 accounts was $74.9m, this has been adjusted for $3.1m of standalone costs incurred in H2 16 to provide a like for like comparison. (3) A supplementary final dividend of 1.06 cents per share was paid to shareholders who were not tax resident in New Zealand and who held less than 10% of the shares in NZME Limited prior to the 6 ex-dividend date of 7th April 2017.

Network Station of the Year!

PROPOSED NZME / FAIRFAX NZ MERGER

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- AT THE CENTRE OF WHAT NEW ZEALANDERS WANT.

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Sharing great stories,
entertaining, engaging and ? ! +
connecting all New Zealanders.
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CURIOUS CONFIDENT CONNECTED
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NZME EXECUTIVE TEAM
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ALLISON SHAYNE SARAH SARAH MIKE MATT MICHAEL LIZA LAURA DEAN MICHELLE WHITNEY CURRIE WOOD JUDKINS MORAN WILSON BOGGS MCNALLY MAXWELL BUCHANAN HAMILTON LEGAL MANAGING GENERAL CHIEF CHIEF CHIEF CHIEF CHIEF CHIEF GROUP GROUP COUNSEL & EDITOR MANAGER, STRATEGY FINANCIAL OPERATING EXECUTIVE MARKETING COMMERCIAL DIRECTOR DIRECTOR COMPANY GRABONE OFFICER OFFICER OFFICER OFFICER OFFICER OFFICER ENTERTAINMENT CULTURE & SECRETARY (Acting) PERFORMANCE

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NZME BOARD

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SIR JOHN ANDERSON Independent Chairman

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CAROL CAMPBELL

Independent Director

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PETER CULLINANE

Independent Director

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Amanda Linnell Managing Editor

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MATT HEATH JEREMY WELLS 6AM - 10AM WEEKDAYS

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WINNERS AT THE 2017

Liam Dann

THE BLACKIE AWARD FOR RADIO COMEDY EXCELLENCE

NZ Herald Business Editor at Large

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MICHAEL BOGGS CHIEF EXECUTIVE OFFICER

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NZME IS ONE OF NZ’S LEADING MEDIA & ENTERTAINMENT BUSINESSES

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E-COMMERCE EXPERIENTIAL
CREATIVE BRANDED
CONTENT
NEWS
PRINT RADIO
VIDEO EVENTS
ENT. SPORT
DIVERSE DIGITAL
AUDIENCES SERVICES
DIGITAL
STRATEGY RADIO BRAND
AND PLANNING ENGAGEMENT
BIL
N
CT B
T
RAN
PA ITI
ODU
+
DS
TE
ES
PR
CA
CORECON CHANNELS
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NZME NEWSROOM “THE BRIDGE”

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NZME TRADING RESULT[1]

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NZME Trading Result [1] ($m) FY16 FY15 % Change
Trading Revenue [1] 407.4 433.0 (6%)
Other Income 2.4 0.5 334%
Costs (337.8) (358.6) (6%)
NZME Segment Result [2] 71.9 74.9 (4%)
-
Adj. for standalone costs incurred in H2 16 [2] (3.1) (100%)
Trading EBITDA [1] 71.9 71.8 0%
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PRO FORMA NPAT [1] PRO FORMA EPS [1]
$27.8m 14.2cps
1% FY15 $27.5m
FULL YEAR DIVIDENDS TOTALLED
9.5 (INTERIM 3.5cps, FINAL 6.0cps3)
cps
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(1) Trading Revenue, Trading EBITDA, Pro forma NPAT and Pro forma EPS are non-GAAP measures that are explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017. (2) The FY15 NZME segment result in the APN FY15 accounts was $74.9m, this has been adjusted for $3.1m of standalone costs incurred in H2 16 to provide a like for like comparison. (3) A supplementary final dividend of 1.06 cents per share was paid to shareholders who were not tax resident in New Zealand and who held less than 10% of the shares in NZME Limited prior to the ex-dividend date of 7th April 2017.

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NZME ACHIEVEMENT OF OPERATIONAL PRIORITIES

1. RADIO REVENUE AGENCY RETURNED TO GROWTH, DIRECT REVENUE DECLINE SLOWED

AUDIENCE GROWTH 2. PRINT REVENUE 1 DECLINE SLOWED OF 5% IN FY16

1. AUDIENCE GROWTH

2. DIGITAL REVENUE

3. COST SAVINGS 24% YoY GROWTH 6% YoY

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1. TALENT DEVELOPED THE HITS - NEW BREAKFAST SHOW LEADERSHIP PROGRAMMES DELIVERED

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1. MERGER PROGRESSED NZ COMMERCE COMMISSION APPEAL PROCESS UNDERWAY

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(1) Nielsen CMI, November fused database: Last twelve months Q1 15 – Q3 16 (population 10 years +). Based on unduplicated weekly reach of NZME newspapers, radio stations, and monthly domestic unique audience of NZME’s digital channels. Note: At the time the NZME Full Year 2016 Results Presentation dated 24 February 2017 was released, the most recent data point available was the last twelve months to Q3 16.

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NZME’S REACH IS GROWING, 81%[1] OF NEW ZEALANDERS NOW READ, WATCH, LISTEN TO, OR OTHERWISE ENGAGE WITH OUR BRANDS

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84% 88%
of the of
North Island [1] Auckland [1]
NZME
REACHES: 70%
of the
South Island1
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Our national and local presence allows us to offer advertisers broad access to their target markets

(1) Nielsen CMI, March fused database: Q1 16 – Q4 16 (population 10 years +). Based on unduplicated weekly reach of NZME newspapers, radio stations, and monthly domestic unique audience of NZME’s digital channels.

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NZME PRINT

PRO FORMA REVENUE[1] -6% IN FY16 To $237.7m

(1) Pro forma Revenue is a non-GAAP measures that is explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017. (2) Nielsen CMI: Q1 16 – Q4 16 (population 10 years +). Based on unduplicated weekly reach of NZME newspapers, radio stations, and monthly domestic unique audience of NZME’s digital channels.

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NZME RADIO & EXPERIENTIAL

TRADING REVENUE[1] -4% IN FY16 To $114.8m

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WINNERS AT THE 2017

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Network Station of the Year

NZME total market share + 1.9%

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‘The Blackie’ award

Listener growth across all NZME stations

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# 1 commercial radio station

Numerous other awards

(1) Trading Revenue is a non-GAAP measures that is explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017.

(2) GfK - Radio Trended Network Data, Total NZ Commercial Survey, T1 2017. All 10+ Mon-Sun 12mn-12mn.

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NZME DIGITAL & E-COMMERCE

TRADING REVENUE[1] +9% IN FY16

(1) Trading Revenue is a non-GAAP measures that is explained and reconciled in the NZME Full Year 2016 Results Presentation dated 24 February 2017.

To $52.2m

INMA WORLD CONGRESS: BEST LAUNCH OF A BRAND OR PRODUCT TO CREATE AN AUDIENCE SEGMENT

Laura McGoldrick and Tristram Clayton

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NZME DEVELOPMENT AND NEW INITIATIVES

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NZME PROPOSED MERGER WITH FAIRFAX NZ

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STUFF
CUISINE
THE DOMINION
POST
SUNDAY
STAR TIMES
NEIGHBOURLY
NZ HOUSE
& GARDEN
THE PRESS
STUFF FIBRE
NIGHT NOODLE
MARKETS
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Source: Nielsen CMI Fused Q1 16 - Q4 16 Mar 2017 AP10+

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NZME FY17 PRIORITIES

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TARGETS

Grow audience reach

Continue to retain Print revenue

Return Radio revenue to growth

Grow new

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revenue streams

capital management

Develop our people and retain our talent

Complete the Fairfax NZ merger (subject to successful appeal and shareholder approval)

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NZME – OUR PEOPLE

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ORDINARY RESOLUTIONS

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ORDINARY RESOLUTIONS – RESOLUTION 1

To consider and, if thought fit, to pass the following ordinary resolution:

Resolution 1: Re-election of Director

It is hereby resolved, as an ordinary resolution, that Peter Cullinane, who retires by rotation and is eligible for re-election, be re-elected as a Director of NZME.

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Proxies & postal
For Against Discretionary Abstain
votes received
Number of shares voted
89,466,322 29,243 680,448 12,714
by proxy or postal vote
Number of shareholders
90 12 0 5
who cast postal votes
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PETER CULLINANE Independent Director

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ORDINARY RESOLUTIONS – RESOLUTION 2

To consider and, if thought fit, to pass the following ordinary resolution:

Resolution 2: Auditor’s remuneration

It is hereby resolved, as an ordinary resolution, that the Directors of NZME are authorised to fix the auditor’s remuneration.

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Proxies & postal
For Against Discretionary Abstain
votes received
Number of shares voted
88,964,903 531,751 680,753 11,320
by proxy or postal vote
Number of shareholders
85 17 0 5
who cast postal votes
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Lorde

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SHAREHOLDER DISCUSSION

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THANK YOU

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