TEN FY 2013 Full Year Results Presentation

7/27/2019 TEN FY 2013 Full Year Results Presentation

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PAGE | 0PAGE | 0 Confidential property of Ten Network Holdings

FY13 RESULTSP R E S E N T A T I O N

HAMISH McLENNAN CEO

PAUL ANDERSON -CFO

T E N N E T W O R K H O L D I N G S L I M I T E D

17 OCTOBER 2013


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PAGE | 1 Confidential property of Ten Network Holdings

HAMISH McLENNAN

C H I E F E X E C U T I V E O F F I C E R


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FINANCIAL RESULTS FOR FY13 FY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1m

Television costs reduced (exTelevision costs reduced (exTelevision costs reduced (exTelevision costs reduced (ex----selling costs) by 8.0%selling costs) by 8.0%selling costs) by 8.0%selling costs) by 8.0%

NonNonNonNon----recurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2m

Television license impairment $292.1mTelevision license impairment $292.1mTelevision license impairment $292.1mTelevision license impairment $292.1m

Television restructure expenses $14.4mTelevision restructure expenses $14.4mTelevision restructure expenses $14.4mTelevision restructure expenses $14.4m

Outdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7m

Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012

Net debt reduced by $235m to $28mNet debt reduced by $235m to $28mNet debt reduced by $235m to $28mNet debt reduced by $235m to $28m

Underlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0m

No final dividend to be paid for FY13No final dividend to be paid for FY13No final dividend to be paid for FY13No final dividend to be paid for FY13


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CORPORATE Significant new fourSignificant new fourSignificant new fourSignificant new four----year, $200m Financingyear, $200m Financingyear, $200m Financingyear, $200m Financing FFFFacility announced:acility announced:acility announced:acility announced:

NoNoNoNo financialfinancialfinancialfinancial banking covenantsbanking covenantsbanking covenantsbanking covenants

Allows greater flexibility to invest in new programming initiativesAllows greater flexibility to invest in new programming initiativesAllows greater flexibility to invest in new programming initiativesAllows greater flexibility to invest in new programming initiatives

Investment will be strategic, prudent and measuredInvestment will be strategic, prudent and measuredInvestment will be strategic, prudent and measuredInvestment will be strategic, prudent and measured

Reflective of confidence by three major TEN shareholdersReflective of confidence by three major TEN shareholdersReflective of confidence by three major TEN shareholdersReflective of confidence by three major TEN shareholders

Subject to shareholder approvalSubject to shareholder approvalSubject to shareholder approvalSubject to shareholder approval atatatat AGMAGMAGMAGM

Strict cost control that started in 2011 will continueStrict cost control that started in 2011 will continueStrict cost control that started in 2011 will continueStrict cost control that started in 2011 will continue

New and improved affiliate agreement signed for three years with Southern Cross MediaNew and improved affiliate agreement signed for three years with Southern Cross MediaNew and improved affiliate agreement signed for three years with Southern Cross MediaNew and improved affiliate agreement signed for three years with Southern Cross Media

Sale of Eye ANZI and UKSale of Eye ANZI and UKSale of Eye ANZI and UKSale of Eye ANZI and UK


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PROGRAMMING HIGHLIGHTS


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2013 RATINGS

TEN 25 to 54 Audience Weeks 31 to 41TEN 25 to 54 Audience Weeks 31 to 41

2012

2013

Source: OzTAM, 5 City Metro, Weeks 31 to 41 2013 vs. Weeks 31 to 41 2012, TEN audience, 18:00-22:30, 19:30 to 22:30, 25 to 54s, Overnight

Since late July,Since late July,Since late July,Since late July, TENs 25 to 54TENs 25 to 54TENs 25 to 54TENs 25 to 54 audience has grownaudience has grownaudience has grownaudience has grown

6pm to 10:30pm

+6%

7:30pm to 10:30pm

+9%


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2013 RATINGSNetwork Ten delivers less wastage in 25 to 54sNetwork Ten delivers less wastage in 25 to 54sNetwork Ten delivers less wastage in 25 to 54sNetwork Ten delivers less wastage in 25 to 54s

0-24

21%

55+

30%

0-24

20%

55+

27%

0-24

16%

55+

41%

53535353%25-54

49494949%

25-54

43434343%25252525----54545454

43434343%25-54

Source: OzTAM, 5 City Metro, Weeks 7 to 41 2013 (excl. Easter Weeks 13 & 14), Network Totals including Primary and Multi-channels, 18:00-22:30, Adhesion,

Consolidated (excluding Week 41 which is Overnight)


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2013 RATINGSTENs median age is in the middle of the 25 to 54 demographicTENs median age is in the middle of the 25 to 54 demographicTENs median age is in the middle of the 25 to 54 demographicTENs median age is in the middle of the 25 to 54 demographic

MEDIAN AGE

42

MEDIAN AGE

45

MEDIAN AGE

49Source: OzTAM, 5 City Metro, Weeks 7 to 41 2013 (excl. Easter Weeks 13 & 14), Primary Channels, Median Age, 18:00-22:30, Consolidated (excluding Week 41 which is Overnight)


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2013 RATINGS

36.3%38.0% 37.0% 37.1%

Network Ten: #1 in Daytime for the 13th consecutive yearNetwork Ten: #1 in Daytime for the 13th consecutive yearNetwork Ten: #1 in Daytime for the 13th consecutive yearNetwork Ten: #1 in Daytime for the 13th consecutive year

Source: OzTAM, 5 City Metro, Weeks 7 to 41 2013 (excl. Easter Weeks 13 & 14), Network Totals including Primary and Multi-channels, 09:00-18:00 Mon to Fri,

Consolidated (excluding Week 41 which is Overnight)

#1

Total People 25 to 54s Under 55s Women

#1#1#1


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2013 RATINGS ELEVEN & ONE

#1MultiMultiMultiMulti----channel in daytimechannel in daytimechannel in daytimechannel in daytime

in total people, 16 to 39s andin total people, 16 to 39s andin total people, 16 to 39s andin total people, 16 to 39s and25 to 54s25 to 54s25 to 54s25 to 54s

#2

MultiMultiMultiMulti----channel combination allchannel combination allchannel combination allchannel combination allday and night in 25 to 54s, 16day and night in 25 to 54s, 16day and night in 25 to 54s, 16day and night in 25 to 54s, 16

to 39s and under 55sto 39s and under 55sto 39s and under 55sto 39s and under 55s

#1MultiMultiMultiMulti----channelchannelchannelchannel

combination in daytime incombination in daytime incombination in daytime incombination in daytime intotal people, 25 to 54stotal people, 25 to 54stotal people, 25 to 54stotal people, 25 to 54sand under 55sand under 55sand under 55sand under 55s

#2

MultiMultiMultiMulti----channel combinationchannel combinationchannel combinationchannel combinationall day and night in 25 toall day and night in 25 toall day and night in 25 toall day and night in 25 to

54s, 16 to 39s and under54s, 16 to 39s and under54s, 16 to 39s and under54s, 16 to 39s and under55s55s55s55s

Source: OzTAM, 5 City Metro, Weeks 7 to 41 2013 (excl. Easter Weeks 13 & 14), 09:00-18:00 Mon to Fri, 06:00-24:00 Sun to Sat, Consolidated (excluding Week 41 which is Overnight)


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2013-14 LOCAL PROGRAMMING


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2013-14 SPORT PROGRAMMING


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2013-14 INTERNATIONAL PROGRAMMING


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DIGITAL TEN will transform into a multiTEN will transform into a multiTEN will transform into a multiTEN will transform into a multi----platformplatformplatformplatform

media companymedia companymedia companymedia company

Best in class products and audienceBest in class products and audienceBest in class products and audienceBest in class products and audienceexperiences around our showsexperiences around our showsexperiences around our showsexperiences around our shows

Engaging rich content experiencesEngaging rich content experiencesEngaging rich content experiencesEngaging rich content experiences

Better process and structureBetter process and structureBetter process and structureBetter process and structure

ZeeboxZeeboxZeeboxZeebox now 100,000 active usersnow 100,000 active usersnow 100,000 active usersnow 100,000 active users

and 700,000 downloadsand 700,000 downloadsand 700,000 downloadsand 700,000 downloads


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DIGITAL

TV anywhere, anytime, on any deviceTV anywhere, anytime, on any deviceTV anywhere, anytime, on any deviceTV anywhere, anytime, on any device

Catch up on TV shows youve missedCatch up on TV shows youve missedCatch up on TV shows youve missedCatch up on TV shows youve missed

Exclusive content and information, social mediaExclusive content and information, social mediaExclusive content and information, social mediaExclusive content and information, social media

Set reminders and access a complete TV guideSet reminders and access a complete TV guideSet reminders and access a complete TV guideSet reminders and access a complete TV guide

Strong ad revenue growth. Premium ad bundlesStrong ad revenue growth. Premium ad bundlesStrong ad revenue growth. Premium ad bundlesStrong ad revenue growth. Premium ad bundles

Since launch:Since launch:Since launch:Since launch:

- Page views up 35% | Video views up 9% | Unique visitors up 10% |Page views up 35% | Video views up 9% | Unique visitors up 10% |Page views up 35% | Video views up 9% | Unique visitors up 10% |Page views up 35% | Video views up 9% | Unique visitors up 10% |Time spent on site up 25% | Downloads 30% above targetTime spent on site up 25% | Downloads 30% above targetTime spent on site up 25% | Downloads 30% above targetTime spent on site up 25% | Downloads 30% above target


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OUTLOOK

Advertising market conditions remain short and the outlook uncertainAdvertising market conditions remain short and the outlook uncertainAdvertising market conditions remain short and the outlook uncertainAdvertising market conditions remain short and the outlook uncertain

Strict cost control to continueStrict cost control to continueStrict cost control to continueStrict cost control to continue


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PAUL ANDERSON

C H I E F F I N A N C I A L O F F I C E R


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FINANCIAL RESULTS FY13 | HIGHLIGHTS FY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1mFY13 Television EBITDA of $46.1m

Television costs (exTelevision costs (exTelevision costs (exTelevision costs (ex----selling costs)selling costs)selling costs)selling costs) reduced byreduced byreduced byreduced by 8.0%8.0%8.0%8.0%

NonNonNonNon----recurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2mrecurring charges from continuing operations of $336.2m

Television license impairment $292.1mTelevision license impairment $292.1mTelevision license impairment $292.1mTelevision license impairment $292.1m

Television restructure expenses $14.4mTelevision restructure expenses $14.4mTelevision restructure expenses $14.4mTelevision restructure expenses $14.4m

Outdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7mOutdoor Impairment and Onerous Contracts $29.7m

Discontinued operations loss of $5.9m (EYE ANZI and UK)Discontinued operations loss of $5.9m (EYE ANZI and UK)Discontinued operations loss of $5.9m (EYE ANZI and UK)Discontinued operations loss of $5.9m (EYE ANZI and UK)

Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012Capital Raising of $222.8m (net of costs) in December 2012

Net debt reduced by $235mNet debt reduced by $235mNet debt reduced by $235mNet debt reduced by $235m

Underlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0mUnderlying loss attributable to members of $5.0m

No final dividend to be paid for FY13No final dividend to be paid for FY13No final dividend to be paid for FY13No final dividend to be paid for FY13

Announcement today of a new $200m Financing Facility subject to shareholder approval at the AGMAnnouncement today of a new $200m Financing Facility subject to shareholder approval at the AGMAnnouncement today of a new $200m Financing Facility subject to shareholder approval at the AGMAnnouncement today of a new $200m Financing Facility subject to shareholder approval at the AGM


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NON-RECURRING & DISCONTINUED OPERATIONS

The information contained on this page may not necessarily be in statutory format. Refer to the Appendix 4E and TNHL Annual Report for the year ended 31 August 2013 for statutory format.

Non Recurring Items ($m)Non Rec urring Items ($m)Non Recurring Items ($m)Non Recurring Items ($m) 2013201320132013 2012201220122012

Continuing OperationsContinuing OperationsContinuing OperationsContinuing Operations

Impairment of television licences 292.1 7.8

Restructure expenses 14.4 3.6

Impairment of EYE US (Outdoor) assets 9.4 -

Provision of Onerous Contracts (EYE US Outdoor) 20.3 -

Total Non-Recurring ItemsTotal Non-Recurring ItemsTotal Non-Recurring ItemsTotal Non-Recurring Items 336.2336.2336.2336.2 11.411.411.411.4

Discontinued OperationsDiscontinued OperationsDiscontinued OperationsDiscontinued Operations

Sale of EYE (ANZI and UK) 5.1 -

Impairment loss of EYE (ANZI) - 12.3

Trading Loss/(Profit) 0.8 (3.2)

Loss from Discontinued OperationsLoss from Discontinued OperationsLoss from Discontinued OperationsLoss from Discontinued Operations 5.95.95.95.9 9.19.19.19.1

Total Significant Items Before TaxTotal Significant Items Before TaxTotal Significant Items Before TaxTotal Significant Items Before Tax 342.2342.2342.2342.2 20.520.520.520.5

Income Tax (Benefit)/Expense (62.2) (0.9)

Net NRI and Discontinued Ops After TaxNet NRI and Discontinued Ops After TaxNet NRI and Discontinued Ops After TaxNet NRI and Discontinued Ops After Tax 280.0280.0280.0280.0 19.619.619.619.6


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FY13 BALANCE SHEET


FY13 Group Balance Sheet ($m)FY13 Group Balance Sheet ($m)FY13 Group Balance Sheet ($m)FY13 Group Balance Sheet ($m) 2013201320132013 2012201220122012

Cash & cash equivalents 122.4 93.9

Receivables 129.3 116.0

Program rights and inventories 197.1 152.2

Intangibles 785.7 1,079.8

Property, plant & equipment 54.2 70.1

Net assets held for sale - 96.9

Other assets 30.2 18.9

Debt - Current (150.0) (210.0)

Debt - Non Current - (150.0)

Other Current Liabilities (186.6) (185.3)

Other Non Current Liabilities (96.4) (140.8)

TOTAL S HAREHOLDERS EQUITYTOTAL S HAREHOLDERS EQUITYTOTAL S HAREHOLDERS EQUITYTOTAL SHAREHOLDERS EQUITY 885.8885.8885.8885.8 941.8941.8941.8941.8


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FY13 CASH FLOW STATEMENT

The information contained on this page may not necessarily be in statutory format. Refer to the Appendix 4E and TNHL Annual Report for the year ended 31 August 2013 for statutory format

FY13 Group Cash Flow ($m)FY13 Group Cash Flow ($m)FY13 Group Cash Flow ($m)FY13 Group Cash Flow ($m) 2013201320132013 2012201220122012 Fav / (Unf)Fav / (Unf)Fav / (Unf)Fav / (Unf)

Operating cash (outflow)/inflow (54.2) 41.8 (229.7%)

Capital Expenditure (11.9) (23.2) 48.8%

Proceeds from sales of investments 92.0 1.4

Other investing activities (0.5) (4.4) 89.4%

Dividends Paid (12.2) (58.4) 79.1%

Refinancing Costs (0.6) -

Proceeds from issue of shares 222.8 196.0 13.7%

NET DEBT REDUCTIONNET DEBT REDUCTIONNET DEBT REDUCTIONNET DEBT REDUCTION 235.5235.5235.5235.5 153.3153.3153.3153.3


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DEBT STRUCTURE & BANKING COVENANTS

1Cash at Bank for Aug 2012 includes $3m classified as Assets Held for Sale in the Appendix 4E and TNHL Annual Report for the year ended 31 August 2013..


USD $125m USPP repaid in Feb 2013USD $125m USPP repaid in Feb 2013USD $125m USPP repaid in Feb 2013USD $125m USPP repaid in Feb 2013

$80m Domestic Facility commenced$80m Domestic Facility commenced$80m Domestic Facility commenced$80m Domestic Facility commencedin Dec 2012in Dec 2012in Dec 2012in Dec 2012

Debt reduced by $235mDebt reduced by $235mDebt reduced by $235mDebt reduced by $235m

FacilityFacilityFacilityFacility

($m)($m)($m)($m) MaturityMaturityMaturityMaturity CovenantCovenantCovenantCovenant

Aug 2013Aug 2013Aug 2013Aug 2013

($m)($m)($m)($m)

Aug 2012Aug 2012Aug 2012Aug 2012

($m)($m)($m)($m)

FacilityFacilityFacilityFacility

USD $125m USPP - Mar-13 - 210

AUD $150m USPP 150 Dec-15 150 150

Domestic 80 Nov-15 - -

TotalTotalTotalTotal 230230230230 150150150150 360360360360

Cash at Bank (122) (97)

Net DebtNet DebtNet DebtNet Debt 28282828 263263263263

Debt Service Ratio < 4.0x 3.59x 3.83x

Net Debt Service Ratio 0.66x 2.80x

Interest Cover Ratio > 3.0x 4.39x 3.32x

1


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INVESTOR DAY & COST GUIDANCE

FY13 television costs (exFY13 television costs (exFY13 television costs (exFY13 television costs (ex----selling costs) reduced by 8.0%selling costs) reduced by 8.0%selling costs) reduced by 8.0%selling costs) reduced by 8.0%

Television costs (exTelevision costs (exTelevision costs (exTelevision costs (ex----selling costs) are expected to increase by 8.0% in FY14, excluding oneselling costs) are expected to increase by 8.0% in FY14, excluding oneselling costs) are expected to increase by 8.0% in FY14, excluding oneselling costs) are expected to increase by 8.0% in FY14, excluding one----off eventsoff eventsoff eventsoff events

- This includes the investment in KFC T20 Big Bash League, Wake Up and Studio 10This includes the investment in KFC T20 Big Bash League, Wake Up and Studio 10This includes the investment in KFC T20 Big Bash League, Wake Up and Studio 10This includes the investment in KFC T20 Big Bash League, Wake Up and Studio 10

OneOneOneOne----off events in FY14 include the XXII Olympic Winter Games in Sochi, Russia, and the XXoff events in FY14 include the XXII Olympic Winter Games in Sochi, Russia, and the XXoff events in FY14 include the XXII Olympic Winter Games in Sochi, Russia, and the XXoff events in FY14 include the XXII Olympic Winter Games in Sochi, Russia, and the XXCommonwealth Games in Glasgow, Scotland, which will add a further $55mCommonwealth Games in Glasgow, Scotland, which will add a further $55mCommonwealth Games in Glasgow, Scotland, which will add a further $55mCommonwealth Games in Glasgow, Scotland, which will add a further $55m

Cost control and efficiencies remain a focusCost control and efficiencies remain a focusCost control and efficiencies remain a focusCost control and efficiencies remain a focus

Investor Day planned for midInvestor Day planned for midInvestor Day planned for midInvestor Day planned for mid----November 2013November 2013November 2013November 2013


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QUESTIONST E N N E T W O R K H O L D I N G S L I M I T E D

Documents

TEN FY 2013 Full Year Results Presentation