NZME LIMITED — AGM Information 2018

Jun 20, 2018

ANNUAL SHAREHOLDERS MEETING 21 JUNE 2018

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Disclaimer

The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in 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 Consolidated Financial Statements.

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 and uncertainties. There is no assurance that results contemplated in any projections or forward looking 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 it’s release to you or to provide you with further information about NZME Limited.

pages 30 to 34 of the NZME Full Year 2017 Results Presentation, available on the Company’s website. 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 2017.

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.

A number of unaudited non-GAAP financial measures are used in this presentation, that are fully explained and reconciled on

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Welcome PETER CULLINANE Independent Chair

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Agenda 1.

• Chairperson’s address Chief Executive Officer’s address Ordinary resolutions 1. Re-election of Director – Carol Campbell

• Election of Director – David Gibson 3. Election of Director – Barbara Chapman 4. Auditor’s remuneration

• General business and shareholder discussion

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A LEADING NEW ZEALAND MEDIA AND ENTERTAINMENT BUSINESS

a unique opportunity to access a growing audience via its fully integrated multi-platform brands.

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MARKETPLACES EXPERIENTIAL
DATA &
INSIGHTS DIGITAL
CLASSIFIEDS
CREATIVE NEWS
NATIVE
PRINT RADIO CONTENT
CONTENT
CREATION
ENT. SPORT
EVENTS
AUDIENCE
TARGETING
BRAND
VIDEO & DIGITAL
ENGAGEMENT
PRODUCTION
DIGITAL
MARKETING
STRATEGY
SERVICES
& PLANNING
LIT
NT
BI
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+
PA
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S
N C
CA
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C A
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CO ELS
CHINESENZHERALD.CO.NZ
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NZME FY17 Results Summary

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Trading Revenue2

Trading EBITDA2

Statutory NPAT1

$20.9m $387.7m

$66.2m

10.7cps Statutory Earnings Per Share

2%

4% FY16 Pro forma2 $404.7m

FY16 Pro forma2 $67.2m

Trading NPAT2

Trading Earnings Full Year Dividends Per Share2 Totalled3 13.6cps 9.5cps 4% FY16 Pro forma2 14.2cps (Interim 3.5cps, Final 6.0cps3)

$26.7m 4% FY16 Pro forma2 $27.8m

(Interim 3.5cps, Final 6.0cps3)

(1) The FY16 Statutory NPAT of $74.5m was impacted by the demerger from HT&E (formerly APN), discontinued businesses and tax payments, and is therefore not comparable with the FY17 results that are fully explained and reconciled on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website. (2) All Trading and Pro forma measures shown here are nonGAAP measures that are fully explained and reconciled on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website. (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 17th April 2018.

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NZME Board

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PETER CULLINANE
Independent Chair
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DAVID GIBSON
Independent Director
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CAROL CAMPBELL Independent Director

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BARBARA CHAPMAN
Independent Director
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NZME Executive Team

MICHAEL BOGGS Chief Executive Off icer

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SARAH JUDKINS Chief Strategy Off icer & Acting Chief Financial Off icer

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LAURA MAXWELL
Chief Digital Off icer
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MATT HEADLAND
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SHAYNE CURRIE Managing Editor

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DEAN BUCHANAN
Group Director, Entertainment
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MATTHEW WILSON
Chief Operations Off icer
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ALLISON WHITNEY General Counsel & Company Secretary

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MICHAEL BOGGS Chief Executive Officer

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New Zealand 2017 General Election NZME’s Multi-Platform Content Distribution

OVER 3.8M UNIQUE BROWSERS1 OVER 16.7M PAGE VIEWS1

OVER 1M 33 SECS PER AVERAGE SESSION1

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Pre-election campaign coverage:

• The PM Job Interview: Bill English and Jacinda Ardern grilled live by our panel of experts

• Expert analysis from NZ Herald, Newstalk ZB

political teams and former MPs'

• Election 2017: "The Great Together" podcast

· Online interactive feature allowed voters to compare main parties’ campaign policies

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LIVE BROADCAST LEADERS' DEBATES

EXLPORE ELECTORATE RESULTS

Interactive electorate voting map

Edition: 46,882 $3.00

nzherald.co.nz | Friday, October 20, 2017 | Monday–Sunday home delivery subscription $18.80/week 1 2 3 Edition: 46,882 NEWSPAPEROFTHEYEAR Circulation 30,000+ WEBSITEOFTHEYEAR

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I feel extra-
ordinarily
honoured
and
privileged
to be in a
position
to form a
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with Labour
at the lead.
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WhyWinstonPetersand
NZFirstchoseLabour
Reports,analysis,reaction—A1-A9,A36,C5
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2017 PENFOLDS COLLECTION AVAILABLE NOW
A FAMILY OF FINE WINES, EACH WITH A DISTINCT
CHARACTER AND PROVENANCE.
A TESTAMENT TO THE ENDURING ‘HOUSE STYLE’ WHICH HAS
BEEN UPHELD BY PENFOLDS SINCE 1844.
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Election night live stream:

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Over 470k views across Digital and social channels1

5 HOURS OF LIVE TV

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Broadcast from NZME and Party HQs

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Day after the election:

Second best day for nzherald.co.nz in 2017 1.2m+ unique browsers, 55% above usual tra� ic1

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(1) Nielsen Market Intelligence September 2017

• NZME REACHES AN IMPRESSIVE 3.2 MILLION NEW ZEALANDERS1 who read, watch, listen to or otherwise engage with our brands.

NZME reaches: 2.6million 1.2million 0.7million in the North Island1 in Auckland1 in South Island1 2% YoY 2% YoY 2% YoY Our growing national and local presence allows us to off er advertisers broader access to their target markets through our integrated multi-platform presence

(1) Nielsen CMI, January 2018 fused database: Q1 17 – Q4 17 (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 Trading Result

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NZME Trading FY17 FY16 Pro % Change
Result1 ($m) forma1
Trading Revenue1 387.7 404.7 (4%)
Other Income 3.7 4.0 (6%)
Costs (325.3) (341.5) (5%)
Trading EBITDA1 66.2 67.2 (2%)
Trading NPAT1 Trading Earnings Full Year Dividends
Per Share1 Totalled2
$26.7m 13.6cps 9.5cps
4% 4%
FY16 Pro forma1 $27.8m FY16 Pro forma1 14.2cps (Interim 3.5cps, Final 6.0cps2)
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(1) All Trading and Pro forma measures shown here are non-GAAP measures that are fully explained and reconciled on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website. (2) 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 17th April 2018.

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TRADING REVENUE [1]
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$221.3m in FY17

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• Best Weekly Newspaper
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• ‘ Break the Silence’ youth suicide
NZ HERALD AVERAGE
campaign: Best Editorial Campaign
ISSUE READERSHIP
• Investigative Reporter Matt Nippert:
Business Journalist of the Year and
+8%
Winner of the Supreme Prize
vs Q1 172
• NZ Herald Editor Murray Kirkness:
Editorial Executive of the Year
• #1 read Sunday Newspaper [3]
(1) Trading revenue shown here is a non-GAAP measure that is fully explained and reconciled on pages 30 to 34 of the NZME Full
Year 2017 Results Presentation available on the Company’s website. (2) Nielsen CMI Q2 16 – Q1 18 (population 15 years +). Based on
unduplicated weekly reach of NZME newspapers. (3) ABC Circulation 2017.
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NZME Radio & Experiential

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2018 WINNERS

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• Best Talk Presenters; Mike Hosking & Marcus Lush

• Best Music Breakfast Show & Best Digital Content

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TRADING REVENUE[1] $114.8m in FY17

-4% vs FY16

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T1 2018 2 RADIO SURVEY

• NZME total market share

+2.0% since the start of 2017

• 5% share growth in Christchurch market

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• Best Videos

PLUS NUMEROUS OTHER AWARDS

• NewstalkZB #1 commercial radio station

(1) Trading revenue shown here is a non-GAAP measure that is fully explained and reconciled on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website. (2) GfK - Radio Trended Network Data, Total NZ Commercial Survey, T1 2018. All 10+ Mon-Sun 12mn-12mn.

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• NZ Herald’s ‘Break the Silence’ investigation: Second Place, Best Public Relations or Community Service Campaign

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• nzherald.co.nz redesign: Third Place, Best Use of Mobile

NZME Digital & e-Commerce

• ‘Discover More’: nzherald.co.nz relaunch campaign: Honourable Mention, Best Brand Awareness Campaign

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TRADING REVENUE[1]

$56.3m in FY17

+8% vs FY16

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AVERAGE UNIQUE AUDIENCE

+6% vs Q1 172

(1) Trading revenue shown here is a non-GAAP measure that is fully explained and reconciled on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website. (2) Nielsen Online Ratings, Domestic Unique Audience, 2016 – 2017.

Best News Website WINNER

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WE’RE ALL ABOUT WHAT YOU DO.

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FY18 Strategic Plan

Horizon 1: Optimising the Core

Offsetting declines in Print advertising with growth in Radio and Digital advertising, and streamlining the cost base.

Horizon 2: Beyond Advertising

Growing new revenue streams that leverage our audiences to generate new revenue opportunities - Digital classifieds and paid content.

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Horizon 3: Re-imagining

Identifying opportunities to develop new business models that grow audience engagement and deliver new revenue streams.

1. Grow audience and engagement through amplification of NZME’s brands and increased focus on planned, unique, local and premium content, supported by continued implementation of the Washington Post arc roadmap.

2. Return advertising revenue to growth by continuing to retain Print revenues, drive Digital revenue growth and capitalise on Radio coverage, content and talent enhancements.

  - through exploring opportunities to

  - leverage our existing fixed cost base and continued focus on improving balance sheet strength.

     **4. Engage and develop our people** by continuing to focus on improving leadership and talent succession planning.

        **5. Grow new revenue streams** through the launch of DRIVEN, YUDU and OneRoof,

        improved data monetisation and developing a paid content proposition. Identify and develop new business models.

           - to further improve our e� iciency and underwrite

           - the competitiveness of New Zealand content generation and delivery.

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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 Carol Campbell, who retires by rotation and is eligible for re-election, be re-elected as a Director of NZME.

CAROL CAMPBELL Independent Director

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Proxies & postal
For Against Discretionary Abstain
votes received
Number of shares voted
86,919,642 243,238 720,822 97,602
by proxy or postal vote
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Ordinary Resolutions RESOLUTION 2

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

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Resolution 2: Election of Director

It is hereby resolved, as an ordinary resolution, that David Gibson, who joined the Board after the last Annual Shareholders’ Meeting, be elected as a Director of NZME.

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DAVID GIBSON Independent Director

Proxies & postal For Against Discretionary Abstain votes received Number of shares voted 87,027,192 131,020 721,822 101,270 by proxy or postal vote

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Ordinary Resolutions RESOLUTION 3

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

Resolution 3: Election of Director

It is hereby resolved, as an ordinary resolution, that Barbara Chapman, who joined the Board after the last Annual Shareholders’ Meeting, be elected as a Director of NZME.

BARBARA CHAPMAN Independent Director

Proxies & postal For Against Discretionary Abstain votes received Number of shares voted 87,021,249 140,248 721,822 97,985 by proxy or postal vote

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Ordinary Resolutions RESOLUTION 4

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

Resolution 4: Auditor’s remuneration

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

Proxies & postal For Against Discretionary Abstain votes received Number of shares voted 87,131,069 79,605 720,822 49,808 by proxy or postal vote

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Shareholder DISCUSSION

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We’ve been here before We’ve shared the battle We’ve heard that roar

We’ll be there

The NZ Herald, Newstalk ZB and Radio Sport are joining forces to bring you unbeatable coverage of the upcoming Series. Arm yourself, with live results, latest breaking news, in depth analysis, and expert opinion.

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THANK YOU We’ll be there Come, join us

Greg Bowker NZ Herald Photographer

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THEY ’RE C OMING: AR M YOURSELF.

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Our wisdom is our strength
The team is our courage
The NZ Herald, Newstalk ZB and Radio Sport are joining forces
to bring you unbeatable coverage of the upcoming Series.
Arm yourself, with live results, latest breaking news,
in depth analysis, and expert opinion.
Patrick McKendry and Gregor Paul
The New Zealand Herald
TH EY’R E COMING : ARM YOURSELF.
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The NZ Herald, Newstalk ZB and Radio Sport
are joining forces to bring you unbeatable
coverage of the upcoming rugby Series.
Arm yourself, with live results, latest
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and expert opinion.
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Laura McGoldrick
NZ Herald Focus Host
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