NZME Limited · NZX:NZM
NZME — Investor Day (November 2023)
145 slides from NZME's investor day presentation, Nov 15, 2023
Slide 1: 2023 Investor Day
1 For personal use only 2023 INVESTOR DAY
Slide 2: CEO Overview
For personal use only 1. CEO Overview Michael Boggs CHIEF EXECUTIVE OFFICER 2
Slide 3: Executive team
1. CEO Overview Executive team For personal use only Michael Boggs Greg Hornblow Carolyn Luey David Mackrell Chief Executive Chief of OneRoof Chief Digital and Chief Financial Officer Publishing Officer Officer Katie Mills Tracey Taylor Jason Winstanley Chief Marketing Chief People Chief Audio Offic
Slide 4: NZME brands reach more than 3.5 million people across NZ each month
1. CEO Overview NZME’s brands reach more than 3.5 million people across NZ each month1 Audio Audience 2025 For personal use only 91% of the people living in Digital audience Auckland1 1,308,3002 Terrestrial audience 89% 1,925,4003 of the people living in the North Island1 Publishing Audience Digital
Slide 5: Board Members
1. CEO Overview Board Members We are governed and supported by an engaged and independent Board with For personal use only diverse experience and backgrounds Barbara Chapman Carol Campbell David Gibson Sussan Turner Guy Horrocks Chairman Independent Independent Independent Independent Director Direc
Slide 6: Team of more than 1200 people and employer promise
1. CEO Overview We have a team of more than 1200 people and we are proud of our employer promise – This Could Lead Anywhere For personal use only At NZME we are committed to fostering an innovative, engaged, inclusive workplace. We have three distinct pillars to support engagement and the developmen
Slide 7: Strong commitment to sustainability
1. CEO Overview We have a strong commitment to sustainability For personal use only 7
Slide 8: Three strategic priorities set in 2020
1. CEO Overview Three strategic priorities were set in 2020, with targets for 2023, with digital transformation at the core of the strategy For personal use only NEW ZEALAND’S YOUR COMPLETE NEW ZEALAND’S LEADING AUDIO PROPERTY HERALD COMPANY DESTINATION Create New Zealand’s best The #1 News brand fo
Slide 9: Digital revenues have shown strong growth
1. CEO Overview Digital revenues have shown strong growth For personal use only Digital audio revenue $m ~50% CAGR Digital Publishing revenue $m ~6% CAGR Digital OneRoof revenue $m ~45% CAGR Advertising revenue Reader revenue ~80% CAGR 9.0 14.0 8.0 80.0 12.0 7.0 70.0 10.0 6.0 60.0 5.0 8.0 50.0 4.0 4
Slide 10: Every business is showing digital mix changes
1. CEO Overview Every business is showing digital mix changes Total digital revenues now represent 29% of total revenue compared to 13% in 2019 For personal use only Audio Publishing advertising revenue Publishing reader revenue OneRoof 100% 100% 100% 100% 80% 80% 80% 80% 60% 60% 60% 60% 40% 40% 40%
Slide 11: Audio Scorecard – 2020 to 2023
1. CEO Overview Audio Scorecard – 2020 to 2023 For personal use only NEW ZEALAND’S LEADING AUDIO COMPANY 2023 Target set 2020 2021 2022 H1 2023 Tracking Metric in 2020 Achievement Achievement Achievement Achievement > 1% share point NZME share of total growth per 35.6%1 37.4%1 37.7%1 38.1%1 audience
Slide 12: Publishing Scorecard – 2020 to 2023
1. CEO Overview Publishing Scorecard – 2020 to 2023 NEW ZEALAND’S For personal use only HERALD 2023 Target set 2020 2021 2022 H1 2023 Tracking Metric in 2020 Achievement Achievement Achievement Achievement More than Subscription Volume 210,000 by 169,000 191,000 209,0001 218,0001 Target 2023 year-en
Slide 13: OneRoof Scorecard – 2020 to 2023
1. CEO Overview OneRoof Scorecard – 2020 to 2023 YOUR COMPLETE For personal use only PROPERTY DESTINATION 2023 Target set 2020 2021 2022 H1 2023 Tracking Metric in 2020 Achievement Achievement Achievement Achievement 96% of listings Residential Listings (100% of non- 89%1 91%1 89%1 90%1 private) 459
Slide 14: FY23 and Beyond
For personal use only 1. CEO Overview FY23 and Beyond 14
Slide 15: Interest rates, unemployment and housing market indicators
15 For personal use only 1. - - 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Mar-17 Mar-17 Jun-17 Jun-17 Sep-17 Sep-17 Dec-17 Dec-17 Mar-18 Mar-18 Jun-18 Jun-18 Sep-18 Sep-18 Dec-18 Dec-18 CEO Overview Mar-19 Mar-19 Jun-19 Jun-19 Sep-19 Sep-19 Actual Actual Dec-19 Dec-19 M
Slide 16: Business confidence has improved, consumers still wary
1. CEO Overview Business confidence has improved significantly, but consumers are still hurting and wary For personal use only “NZ remains on course for a period of subdued economic growth as the impact of high interest rates continues, although increasing migration and a strengthened housing market
Slide 17: Advertising revenue returning to growth, but not consistently
1. CEO Overview Business confidence improvement is being reflected in advertising revenue returning to growth, but not consistently For personal use only A trend of improvement is evident in H2 2023 NZME Advertising Revenue Variance1 35.0% Growth on prior year 30.0% given lockdown 25.0% 20.0% 15.0%
Slide 18: 2023 Update
1. CEO Overview 2023 Update FINANCIAL PERFORMANCE For personal use only The economic environment over the past year has been difficult. For the first half advertising revenue was down 7% year on year. The second half has seen improvement in business confidence, but this is not yet consistently refle
Slide 19: The next three years
For personal use only 1. CEO Overview The next three years 19
Slide 20: Global platforms demonstrate value of digital growth models
1. CEO Overview Global platforms continue to demonstrate the value of digital growth models for NZME For personal use only NZME NZME NZME $m iHeart3 NY Times3 Domain4 OneRoof3 Audio3 Publishing3 Group3 Revenue1 6,699 114 3,953 225 377 23 365 EBITDA1 1,627 23 596 47 119 (1) 65 EBITDA margin 24.3% 13.
Slide 21: Publishing organised into separate digital and print units
1. CEO Overview NZME’s Publishing division organised into separate digital and print units – a true digital first model For personal use only Digital Publishing • Content produced for digital publishing • Revenue from subscribers and advertisers • Costs include all content costs excluding specific p
Slide 22: A profitable digital business now funding journalism
1. CEO Overview A profitable digital business that is now funding journalism For personal use only 2022 2022 2022 Total $ million Print Digital Publishing Subscription revenue 63.9 19.8 83.7 Digital will outperform Print Advertising revenue 63.8 59.5 123.3 in the future (conceptual) Other 5.5 13.0 1
Slide 23: Separating digital from print provides line of sight to profit pools
1. CEO Overview Separating digital from print provides clear line of sight to profit pools For personal use only Digital Publishing Business Print Publishing Business • A profitable digital business is now visible • Improves focus on operating to maximise from an operational and profitability cashfl
Slide 24: Evolved three strategic priorities for next three years
1. CEO Overview Evolved our three strategic priorities for next three years For personal use only NUMBER ONE IN NEW ZEALAND’S LEADING YOUR ESSENTIAL AUDIO NEWS DESTINATION PROPERTY PLATFORM Create the most listened to Scalable digital audience Superior listings and loved content and advertising News
Slide 25: Digital led strategy focused on superior returns
1. CEO Overview Digital led strategy focused on delivering superior returns Our central objective is to relentlessly pursue a digital led strategy across our three key platforms. This will set us For personal use only apart from our competitors and drive returns for shareholders. Globally these digi
Slide 26: Performance Update
For personal use only 2. Performance Update David Mackrell CHIEF FINANCIAL OFFICER 26
Slide 27: Revenue and earnings substantially stable
2. Performance Update Revenue and earnings substantially stable during difficult period For personal use only Revenue $m Profitability $m1 400 70 350 60 300 50 250 40 200 30 150 100 20 50 10 - - 2019 2020 2021 2022 2023F 2019 2020 2021 2022 2023F Publishing Digital Publishing Print Audio OneRoof Oth
Slide 28: Continued focus on containing cost base
2. Performance Update There has been a continued focus on containing cost base For personal use only • Focus on the cost base has continued and remains below the 2019 level • Investment in OneRoof growth and BusinessDesk addition is partly offset by sale of GrabOne • Wage and salary inflation has co
Slide 29: Capital expenditure has stabilised at ~$10m
2. Performance Update Capital expenditure has stabilised at ~$10m For personal use only Capital expenditure $m 12.0 • Majority of annual capital spend is on product development relating to digital platforms 10.0 • Core technology and broadcast infrastructure spend is reasonably consistent year to ye
Slide 30: Strong free cashflow and net debt substantially reduced
2. Performance Update Strong free cashflow and net debt substantially reduced – expected to be bottom of target range For personal use only Operating free cash flow $m 1.8 Net debt and Leverage1 41.1 1.5 34.5 0.8 0.7 23.8 0.6 0.4 0.3 14.8 98.3 74.7 33.8 17.5 30.7 31.6 7.7 (13.5) 2018 2019 2020 2021
Slide 31: Shareholder returns
2. Performance Update Shareholder returns For personal use only Dividends Declared (cents per share) Dividend payments and Share buyback ($m) 14.0 5.0 9.5 9.5 17.6 8.0 6.0 6.0 6.0 5.0 3.0 25.4 2.0 - 18.6 15.7 16.5 3.5 3.5 - - 3.0 3.0 3.0 2.0 6.9 - - 5.9 2016 2017 2018 2019 2020 2021 2022 2023 2016 2
Slide 32: Earnings mix transitions with strong OneRoof contribution
2. Performance Update Earnings mix transitions over the coming years with strong OneRoof contribution The digital publishing business profitability is expected to overtake the print business For personal use only during 2026 2019 2023F 2026F Audio Audio Audio Publishing Digital Publishing Digital Pu
Slide 33: Audio
33 For personal use only AUDIO
Slide 34: Number One in Audio
For personal use only 3. Audio Number One in Audio Jason Winstanley CHIEF AUDIO OFFICER 34
Slide 35: Three pillars to the Audio strategy
3. Audio Number One in Audio Strategy Number One In Audio There are three pillars to the Audio strategy For personal use only Create the most listened Deliver customer Grow podcast to and loved content solutions to grow engagement and revenue share monetisation 35
Slide 36: Three pillars to the Audio strategy
3. Audio Number One in Audio Strategy Number One in Audio There are three pillars to the Audio strategy For personal use only Create the most listened Deliver customer Grow podcast to and loved content solutions to grow engagement and revenue share monetisation 36
Slide 37: Terrestrial radio's audience larger than television in some markets
3. Audio Number One in Audio Most listened to and loved content Terrestrial radio’s audience is now larger than television in some overseas markets For personal use only Nielsen Total Audience Report: Persons 18-49 average audience of AM/FM radio as a % of live + time-shifted TV (USA) 103% 105% 83%
Slide 38: Terrestrial remains biggest channel; digital growing in USA
3. Audio Number One in Audio Most listened to and loved content Terrestrial remains the biggest channel for consumption and digital continues its growth in USA For personal use only Audio Consumption USA 100% 90% 80% 70% • 82% of Americans listen to 60% terrestrial radio each week 50% • Strong growt
Slide 39: Podcast consumption in USA now 19% of ad-supported
3. Audio Number One in Audio Most listened to and loved content Podcast consumption in the USA continues to grow, now reflecting 19% of all ad-supported consumption For personal use only Total Audio Consumption (Share)1 Ad-supported Audio Consumption (Share)2 AM/FM radio (terrestrial & streaming) 37
Slide 40: Streaming radio 20% of time spent listening in USA
3. Audio Number One in Audio Most listened to and loved content Streaming radio has grown to account for 20% of time spent listening in the USA For personal use only Monthly % reach of ad-supported audio among Percent of AM/FM radio time spent with adults 18+ digital streams of broadcast stations 25
Slide 41: Technology a key driver of digital audio growth
3. Audio Number One in Audio Most listened to and loved content Technology is a key driver of digital growth in the audio ecosystem For personal use only Global Hearable Market Size1 USA Smart Speakers & Connected Devices2 100% 90% 80% 88% 83% 83% 81% 81% 81% 70% 78% 60% 50% 39% 39% 34% 37% 40% 31%
Slide 42: Audio consumption in NZ now equals TV/video
3. Audio Number One in Audio Most listened to and loved content Audio consumption in NZ now equals TV/video Radio reaches 72% of New Zealanders each week For personal use only Weekly Media Consumption Watch TV/video 92 Listen to audio 92 Use social media 76 Listen to radio 72 Listen to podcasts 31 4
Slide 43: Commercial radio audience levels strongly enduring
3. Audio Number One in Audio Most listened to and loved content Commercial radio audience levels have been strongly enduring and consistent 3.4 million New Zealanders listen to commercial radio each week1 and listen on For personal use only average for 15 hours 19 minutes each week2 Cumulative Audie
Slide 44: Monthly digital audio consumption in NZ vs international
3. Audio Number One in Audio Most listened to and loved content Monthly digital audio consumption in NZ is similar to international markets with an opportunity to monetise a younger audience For personal use only Digital audio consumption has been growing internationally over the past six years. The
Slide 45: NZME has a wide and competitive range of audio offerings
3. Audio Number One in Audio Most listened to and loved content NZME has a wide and competitive range of audio offerings Audio ecosystem extends beyond traditional radio with growing content offerings For personal use only across local and international publishers Brand Radio Music Streaming Podcast
Slide 46: NZME has a diverse audio content offering
3. Audio Number One in Audio Most listened to and loved content NZME has a diverse audio content offering For personal use only BROADCAST DIGITAL & DIGITAL STREAMING EXCLUSIVE 30+ catch up radio 50+ NZME Original We are active in show podcasts Owned or Partner 27 markets Podcasts. 18 launched 2023 1
Slide 47: NZME's leading audio brands target all New Zealanders
3. Audio Number One in Audio Most listened to and loved content NZME’s leading audio brands target all New Zealanders RADIO BROADCAST CONSUMED CONSUMED DIGITALLY DIGITALLY For personal use only RADIO BROADCAST • Brand portfolio incorporating leading talk and music formats • 2 million listeners every
Slide 48: Radio audience normalised post Covid; digital audio growing
3. Audio Number One in Audio Most listened to and loved content NZME radio audience has normalised post Covid and digital audio continues strong growth For personal use only NZME Radio weekly listeners NZME Radio Share Digital Audio Total Listening Hours (Total NZ All 10+ Cume)1 (Total NZ All 10+ Sh
Slide 49: Connected device listening larger than desktop/laptops
3. Audio Number One in Audio Most listened to and loved content Listening via connected devices, including smart speakers, is now larger than desktop/laptops For personal use only Monthly Average Total Listening Hours By Device1 4.0 3.5 3.0 • Whilst Mobile remains the primary device, 2.5 connected d
Slide 50: Focus on The Hits and Coast to close 40-50 demographic gap
3. Audio Number One in Audio Most listened to and loved content NZME’s focus is on The Hits and Coast to close the gap in the 40-50 demographic, while growing overall audience For personal use only • Newstalk ZB is the number Sound one station in New Zealand More Female | More Male Rock Hauraki Gold
Slide 51: Focus Brand: The Hits
3. Audio Number One in Audio Most listened to and loved content Focus Brand: The Hits The strategy to grow The Hits audience • Six consecutive 10+ audience share For personal use only is working and will continue. increases2 • 48% growth in iHeartRadio The Jono & Ben network breakfast show Total Lis
Slide 52: Focus Brand: Coast
3. Audio Number One in Audio Most listened to and loved content Focus Brand: Coast • Audience share growth in the For personal use only three major metro markets1 • 30% growth in iHeartRadio Total Listening Hours 2020 vs 20232 • Lifestyle and wellness podcast Talent and content changes series We Nee
Slide 53: iHeartRadio functionality provides market leading capability
3. Audio Number One in Audio Most listened to and loved content iHeartRadio functionality provides NZME with market leading capability for audiences and advertisers For personal use only iHeartRadio provides benefits listeners can’t access anywhere else, with native integration into more than 250 de
Slide 54: Key areas of focus
3. Audio Number One in Audio Most listened to and loved content Key areas of focus For personal use only • Grow market share with The Hits and Coast • Leverage iHeartRadio functionality and roadmap • Grow total digital audience further Create Create the themost Create most the listened listened most
Slide 55: Three pillars to the Audio strategy
3. Audio Number One in Audio Strategy Number One in Audio There are three pillars to the Audio strategy For personal use only Create the most listened Deliver customer Grow podcast to and loved content in solutions to grow engagement and NZ revenue share monetisation 55
Slide 56: iHeartMedia USA rapid growth in digital revenues
3. Audio Number One in Audio Grow revenue share iHeartMedia USA has experienced rapid growth in digital revenues, now 28% of revenue For personal use only iHeartRadio is the foundational platform for NZME’s digital audio growth • iHeartMedia is the leading audio media company in the USA based on Rev
Slide 57: Radio is significantly bigger than advertisers perceive
3. Audio Number One in Audio Grow revenue share Radio is significantly bigger than advertisers perceive “The biggest risk for radio is the 26-year-old planner who ….. does not commute by car For personal use only and does not listen to the radio and thus does not think anyone else listens to the rad
Slide 58: NZ market revenues returning to pre-Covid levels
3. Audio Number One in Audio Grow revenue share NZ market revenues were returning to pre-Covid levels prior to 2023 recessionary impacts For personal use only NZ Radio Advertising Market Revenue $m 300 264 260 261 256 248 250 240 231 220 • The market is showing signs of 200 recovery in late 2023 • D
Slide 59: NZME revenue market share growing
3. Audio Number One in Audio Grow revenue share NZME revenue market share growing While the local market continues to be challenged due to economic conditions, For personal use only NZME has increased our market share in 2023 NZ Radio Market Revenue and Share 30,000,000 45.0% 25,000,000 40.0% 20,000
Slide 60: NZME at forefront of digital audio commercial opportunity
3. Audio Number One in Audio Grow revenue share NZME is at the forefront of the leading digital audio commercial opportunity in market Digital audio revenue largely driven by in stream advertising across digital radio, with For personal use only podcasting revenue rapidly growing Digital Audio Reven
Slide 61: Further personalisation will aid monetisation
3. Audio Number One in Audio Grow revenue share Further personalisation of content will aid commercial monetisation For personal use only Content Recommendation Personalised Advertising Core benefits of growth in data across product Your brands message offering: with individual user 1. Better conten
Slide 62: Digital audio allows increased monetisation across platforms
3. Audio Number One in Audio Grow revenue share Digital audio allows increased monetisation across multiple platforms Digital Radio Music Streaming NZME Podcast Network For personal use only Live stream any NZME radio station or 100 Stream music with iHeart’s Sitting across all podcast players, the
Slide 63: Key areas of focus
3. Audio Number One in Audio Grow revenue share Key areas of focus For personal use only • Grow the total audio market revenue, accessing TV revenues that are in decline • Deliver integrated campaigns utilising NZME's wider assets Deliver customer • Increase data capability, accessing all of NZME's
Slide 64: Three pillars to the Audio strategy
3. Audio Number One in Audio Strategy Number One in Audio There are three pillars to the Audio strategy For personal use only Create the most listened Deliver customer Grow podcast to and loved content in solutions to grow engagement and NZ revenue share monetisation 64
Slide 65: Podcast revenues projected to continue significant growth
3. Audio Number One in Audio Grow podcast engagement and monetisation Podcast revenues are projected to continue significant growth Despite economic headwinds, podcast ad revenues posted strong growth in For personal use only 2022, +26% to $1.8B 2023 estimate is $USD7 per person in the USA This equa
Slide 66: Podcasting taking time and attention from other platforms
3. Audio Number One in Audio Grow podcast engagement and monetisation Podcasting is taking time and attention from other platforms USA listeners are giving up social media and video to listen to podcasts For personal use only Has your podcast listening taken the place of time you used to spend with
Slide 67: NZ podcast consumption following international trends
3. Audio Number One in Audio Grow podcast engagement and monetisation NZ podcast consumption is following international trends Monthly podcast listening in NZ is ahead of USA/AUS. Predominantly driven by a younger demographic with 60% of 16-34 year olds having listened to a podcast in the last month
Slide 68: International podcast genres well serviced by NZME content
3. Audio Number One in Audio Grow podcast engagement and monetisation Leading international podcast genres are well serviced by NZME content NZME major advantage in significant broadcasting and digital channels to support the promotion and For personal use only discoverability of podcast titles. Qua
Slide 69: Podcast downloads have shown rapid growth
3. Audio Number One in Audio Grow podcast engagement and monetisation Podcast downloads have shown rapid growth Year to date growth of 56% on 2022 For personal use only NZME Produced Podcast Content Downloads 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 5
Slide 70: NZME is the largest podcaster in NZ
3. Audio Number One in Audio Grow podcast engagement and monetisation NZME is the largest podcaster in NZ NZME has led every Podranker for 25 consecutive months. Total podcast downloads For personal use only within the NZME Commercial Network is over 14 times our nearest competitor NZ Triton Podrank
Slide 71: Partner content provides incremental reach
3. Audio Number One in Audio Grow podcast engagement and monetisation Partner content provides NZME incremental reach NZME not only generates revenue from content it makes, but also locally represents For personal use only some of the leading podcast publishers from around the world NZME Podcast Com
Slide 72: Key areas of focus
3. Audio Number One in Audio Grow podcast engagement and monetisation Key areas of focus For personal use only • Produce new content in line with international genre preferences • Continue to utilise NZME’s platforms to grow podcast awareness and consumption Grow podcast • Grow known podcast audienc
Slide 73: Number One in Audio Scorecard
3. Audio Number One in Audio Number One in Audio Scorecard For personal use only H1 FY23 2026 METRIC Actual Target Audience share 38.1%1 >1% share point growth per annum (% of radio audience) Revenue share - Radio 42.4%2 - Digital _72.4%3 - Total 43.0% >1% share point growth per annum Digital audio
Slide 74: Publishing
74 For personal use only PUBLISHING
Slide 75: New Zealand's leading news destination
For personal use only 4. Publishing New Zealand’s leading news destination Carolyn Luey CHIEF DIGITAL AND PUBLISHING OFFICER 75
Slide 76: News media landscape continues to evolve
4. Publishing New Zealand’s leading news destination Background The news media landscape continues to evolve. Global publishers are preparing for a digital-only world For personal use only News media landscape will converge • News media will be digitally led • Newspaper, magazines, radio, television
Slide 77: New York Times gold standard; NZME transitioning to subscriptions
4. Publishing New Zealand’s leading news destination Background New York Times continues to be the gold standard in the global publishing market with more than 40% of revenue in digital subscriptions For personal use only NZME has started the transition to a subscription-led business NZME Publishing
Slide 78: Next horizon of digital transformation with separate digital teams
4. Publishing New Zealand’s leading news destination Background We have shifted into the next horizon of our digital transformation by creating separate digital teams For personal use only CURRENT Q4 23+ Print Centric Model Digital Centric Separate Digital Digital Only Model Hybrid Model and Print M
Slide 79: Publishing well placed and benchmarks higher than 90% of publishers
4. Publishing New Zealand’s leading news destination Background NZME’s Publishing business is well placed for the future and benchmarks higher than 90% of global publishers For personal use only NZME scores higher than 90% of publishers NZME performs well across the different drivers of across the w
Slide 80: Three pillars to the Publishing strategy
4. Publishing New Zealand’s leading news destination Strategy New Zealand’s leading news destination There are three pillars to the Publishing strategy For personal use only Scalable digital Expert journalism High quality and audience and that grows efficient print advertising News subscriber lifeti
Slide 81: Three pillars to the Publishing strategy
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform New Zealand’s leading news destination There are three pillars to the Publishing strategy For personal use only Scalable digital Expert journalism High quality and audience and that grows eff
Slide 82: Journalism reaches 3.3 million Kiwis each month
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform NZME’s journalism reaches 3.3 million Kiwis each month For personal use only NZ’s biggest commercial radio station with a reach News Brand audience monthly reach of 2.5M1 NZME Newsroom • Digi
Slide 83: Our mission
Our mission Weare here toinform, explain and entertain — reporting without fear or favour, acting with dignity and respect. Always at the centre of debate, agents of positive change, and unswerving in our pursuit of truth for all of Aotearoa
Slide 84: For personal use only
New Slide: Combine 4 slides into 1. For personal use only 8484 84
Slide 85: For personal use only
New Slide: Combine 2 slides into 1 For personal use only 8585 85
Slide 86: News Worth Knowing brand campaign
For personal use only News Worth Knowing aims to boost presence and familiarity nationwide, to ensure the Herald is front of mind and known as a modern, trusted source of news, views and opinion. Our brand strategy is to; • Build the brand code with highly distinctive assets • Build the brand experi
Slide 87: News Worth Knowing brand themes
For personal use only TRUSTED JOURNALISM ENGAGING LIFESTYLE NEW ZEALAND’S HERALD ‘When it’s news you can trust, it’s News Reviews Worth Knowing Waikato News Worth Knowing Worth Knowing’ Recipes Worth Knowing Destinations Worth Knowing Tips Worth Knowing 8787 87
Slide 88: Expanding audience reach through six priorities
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Expanding audience reach and engagement through six priorities Trusted quality journalism delivering on the business of news For personal use only Data foundations will 1 Data Foundations 1 d
Slide 89: Data foundations: deeper audience and content insights
1 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Data foundations: utilise deeper audience and content insights to inform editorial decision making For personal use only Monthly Reporter Scorecard • Daily editorial scoring report to • Edi
Slide 90: Expand Audiences: regional, lifestyle and next generation
2 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Expand Audiences: strategic focus on regional, lifestyle and next generations to fuel audience expansion For personal use only Regional Lifestyle & Travel Next Generation • Build deeper rel
Slide 91: Expand diversity of journalism and audiences: Kāhu
2 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Expand Audiences: continue to expand the diversity of our journalism and audiences, building on the success of Kāhu For personal use only Kāhu will be one of New Zealand’s leading mainstrea
Slide 92: Content Planning: user needs framework
3 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Content Planning – the user needs planning framework will drive a greater focus on delivering stories through an audience lens For personal use only Update Me Educate Me •e.g. Live news “Au
Slide 93: Immersive Content Experiences
4 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Immersive Content Experiences: enhanced story telling and create different formats based on reader preferences For personal use only Live News Summaries Vertical Video Text to Speech Audio
Slide 94: Deeper Reader Relationships: multiple homepage variants
5 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Deeper Reader Relationships: multiple homepage variants Curated segments combined with personalisation to optimise content discovery For personal use only Redesigned homepage with multiple
Slide 95: Growing 1st party data to unlock subscribers and advertising
5 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Deeper Reader Relationships: growing 1st party data is key to unlocking more subscribers and advertising revenue For personal use only More Known Users Richer User Profiles More registered
Slide 96: Modernise Platform Foundations
6 4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Modernise Platform Foundations: to create a scalable platform for the future and enhanced customer experience For personal use only Identity Recommendations Dynamic Engine • Single sign on
Slide 97: Digital audience and platform delivers digital advertising opportunity
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform NZME’s digital audience and platform delivers the digital advertising revenue opportunity For personal use only Total Digital Display Advertising Market Revenue and NZME Share %1 27% 240 26%
Slide 98: Advertisers seeking quality brand safe environments
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Advertisers are seeking out quality brand safe environments that deliver results through reduced emissions For personal use only Quality brand safe scalable environments that deliver client r
Slide 99: 1st party data products critical in a cookieless world
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform 1st party data enabled products and quality intent based contextual environments will be critical in a cookieless world For personal use only Individuals Groups of People Environments / Inter
Slide 100: Portfolio of e-commerce ad solutions
4. Publishing New Zealand’s leading news destination Scalable digital audience and advertising news platform Portfolio of e-commerce ad solutions offering immersive shoppable experiences that align to the path to purchase For personal use only The Selection Shoppable Pre Product Reviews Roll Video P
Slide 101: Three pillars to the Publishing strategy
4. Publishing New Zealand’s leading news destination Expert journalism New Zealand’s leading news destination There are three pillars to the Publishing strategy For personal use only Scalable digital Expert journalism High quality and audience and that grows efficient print advertising News subscrib
Slide 102: Total addressable market for news in NZ is significant
4. Publishing New Zealand’s leading news destination Expert journalism The total addressable market for news in NZ is significant, while our digital subscriptions continue to grow as the market evolves For personal use only Total Addressable Market • Sizable addressable market for news subscriptions
Slide 103: Balancing volume and yield for profitability
4. Publishing New Zealand’s leading news destination Expert journalism As the digital subscription base has grown and the mix has changed, balancing volume and yield has become increasingly important for profitability For personal use only • Individuals: stimulate volume through dynamic offers based
Slide 104: Herald Premium vs global publishing benchmarks
4. Publishing New Zealand’s leading news destination Expert journalism Herald Premium subscriptions are performing well versus global publishing benchmarks For personal use only Measure Subscriber Penetration Monthly ARPU Paywall Stop Rate Paid Stop Monthly Churn Rate Conversion Rate Rate Internatio
Slide 105: Evolution of reader revenue strategy
4. Publishing New Zealand’s leading news destination Expert journalism Evolution of reader revenue strategy to accelerate growth, reinvention and investment is required For personal use only Introduction Early Growth Scaled Growth 2019 - 2020 2021 - 2023 2024 - 2026 Primary Goal Building viable Focu
Slide 106: For personal use only
106 For personal use only 6 1010
Slide 107: BusinessDesk has grown 80% since acquisition
4. Publishing New Zealand’s leading news destination Expert journalism BusinessDesk has grown 80% since acquisition, with a strong pathway for further growth For personal use only Grow brand awareness Enhanced utility Grow subscriptions • Increased from 44% to • Launched new app to • Aligned reporte
Slide 108: ZB Plus launched to address market gap
4. Publishing New Zealand’s leading news destination Expert journalism ZB Plus was launched to address the gap in the market for an opinion-heavy platform that resonated For personal use only Market gap for a publishing proposition for our ZB audience • Leverage the strength of the Newstalk ZB audio
Slide 109: Broaden addressable market with subscriber centric products
4. Publishing New Zealand’s leading news destination Expert journalism Broaden the addressable market by building out subscriber centric product and verticals For personal use only • Continue to build out • Deliver increased utility and • Introduce new product types subscription portfolio through fe
Slide 110: Dynamic offers to maximise subscriber lifetime value
4. Publishing New Zealand’s leading news destination Expert journalism Build dynamic offers and a connected customer experience to maximise subscriber lifetime value For personal use only ARPU Reward Super Bundle Upsell Reward Reward Multiple Subscriptions Upsell One Subscription Upsell Logged In Us
Slide 111: Three pillars to the Publishing strategy
4. Publishing New Zealand’s leading news destination High quality and efficient print business New Zealand’s leading news destination There are three pillars to the Publishing strategy For personal use only Scalable digital Expert journalism High quality and audience and that grows efficient print a
Slide 112: Print business drives strong audiences
4. Publishing New Zealand’s leading news destination High quality and efficient print business NZME’s print business continues to drive strong audiences and serve our readers across the North Island For personal use only NZME Daily Metro and Regional Newspapers 65,000 weekly readers 1.54M 1,039,000
Slide 113: Print revenue trend continues with predicted decline in FY23
4. Publishing New Zealand’s leading news destination High quality and efficient print business Print revenue trend continues, with challenging market conditions contributing to the predicted decline in FY23 For personal use only Print Subscription Volume vs. Yield Total Print Advertising Market Reve
Slide 114: Maximising revenue, streamlining production
4. Publishing New Zealand’s leading news destination High quality and efficient print business Our business will be focused on maximising revenue, streamlining production while exploring strategic synergies For personal use only Maximise Revenue Reader Revenue Advertising Revenue • Maximise yield im
Slide 115: Positioned to manage print business through next lifecycle phase
4. Publishing New Zealand’s leading news destination High quality and efficient print business NZME is well positioned to manage the print business through the next phase of the lifecycle For personal use only Print Supply Chain Print Plant Distribution Current State • Diversified newsprint • Print
Slide 116: New Zealand's leading news destination
4. Publishing New Zealand’s leading news destination New Zealand’s leading news destination For personal use only Scalable digital Expert journalism High quality and audience and that grows efficient print advertising News subscriber lifetime business platform value 116
Slide 117: Leading News Destination Scorecard
4. Publishing New Zealand’s leading news destination New Zealand’s Leading News Destination Scorecard For personal use only Digital Print H1 FY23 FY26 H1 FY23 FY26 Metric Actual Target Actual Target Subscription Volume Target 123,000 190,000 90,000 >65,000 Advertising Revenue Mix 48% 60% 52% 40% EBI
Slide 118: OneRoof
118 For personal use only ONEROOF
Slide 119: Your essential property platform
For personal use only 5. OneRoof Your essential property platform Greg Hornblow CHIEF OF ONEROOF 119
Slide 120: Three pillars to the OneRoof strategy
5. OneRoof Your essential property platform Strategy Your essential property platform There are three pillars to the OneRoof strategy For personal use only Superior listings Grow listings revenue Accelerate non-listings experience and portfolio performance 120
Slide 121: International portals embrace total marketplace model
5. OneRoof Your essential property platform Strategy background International portals have developed clear roadmaps for business growth, embracing total marketplace model For personal use only Scale #1 in Australia, interest #2 in Australia #3 in Australia #1 in USA also in India, US and South East
Slide 122: Real estate is New Zealand's preferred investment asset
5. OneRoof Your essential property platform Strategy background Real estate is New Zealand’s preferred investment asset For personal use only New Zealand Property Investment vs International $1,600k NZ Household Asset Values2 16.00% $1,400k Housing and land (including rental properties) Australia 14
Slide 123: Property is cyclical
5. OneRoof Your essential property platform Strategy background Property is cyclical Historically, property has been in 7-10 year cycles. The bottom of this cycle has For personal use only passed and we expect volumes and values to grow from here. 12.0k $3,000k Covid 10.0k $2,500k 8.0k $2,000k 6.0k
Slide 124: Three pillars to the OneRoof strategy
5. OneRoof Your essential property platform Superior listings experience and performance Your essential property platform There are three pillars to the OneRoof strategy For personal use only Superior listings Grow listings revenue Accelerate non-listings experience and portfolio performance 124
Slide 125: Continuous product improvement is at the core of OneRoof
5. OneRoof Your essential property platform Superior listings experience and performance Continuous product improvement is at the core of OneRoof OneRoof continues to evolve and improve For personal use only 2018 2019 2020 2021 2022 • Residential for sale • Home builders section • Presence on nzhera
Slide 126: Strong coverage of for sale listings across the country
5. OneRoof Your essential property platform Superior listings experience and performance OneRoof has strong coverage of for sale listings across the country Northland For personal use only 91% Auckland 102% 96% 103% Bay of Plenty 86% OneRoof carries: 104% Waikato 91% 106% • ~ 90% of TM property list
Slide 127: OneRoof has continued to close the web audience gap
5. OneRoof Your essential property platform Superior listings experience and performance OneRoof has continued to close the web audience gap Web audience for competitors has been decreasing during weaker property market For personal use only cycle. OneRoof has continued to grow, closing average gap
Slide 128: Increased audience engaging in listings and enquiries
5. OneRoof Your essential property platform Superior listings experience and performance Increased audience engaging in listings and enquiries For personal use only Average Daily Listings Users (ADLUs) & Enquiries +36% +106% ADLUs Enquiries Jan – Sep YoY Jan – Sep YoY Google Analytics, Jan – Sep 23
Slide 129: OneRoof has a unique value proposition
5. OneRoof Your essential property platform Superior listings experience and performance OneRoof has a unique value proposition The only platform to deliver through the entire consumer lifecycle from passive to For personal use only active property buyer Digital Print Radio OneRoof is New Zealand’s
Slide 130: Continued platform development and leveraging passive audience
5. OneRoof Your essential property platform Superior listings experience and performance Continued platform development and leveraging OneRoof’s passive audience will further increase listings views and enquiries For personal use only Enhance listings point of difference • Continue product developme
Slide 131: Three pillars to the OneRoof strategy
5. OneRoof Your essential property platform Grow listings revenue Your essential property platform There are three pillars to the OneRoof strategy For personal use only Superior listings Grow listings revenue Accelerate non-listings experience and portfolio performance 131
Slide 132: Digital listings revenue continued to grow
5. OneRoof Your essential property platform Grow listings revenue Digital listings revenue continued to grow This growth continued against the backdrop of a lower number of new listings coming to market For personal use only OneRoof Real Estate Revenue Mix and New Listings $25m 140k • The property m
Slide 133: Residential new property listings declined further in 2023
5. OneRoof Your essential property platform Grow listings revenue Residential new property listings have declined further in 2023 New properties coming to market have reduced over recent years. For personal use only Large reductions seen in Auckland which was OneRoof’s initial focus. Annual New Sep
Slide 134: Decline in new listings has slowed in second half of 2023
5. OneRoof Your essential property platform Grow listings revenue The decline in new listings has slowed in second half of 2023, creating further opportunity for growth For personal use only Monthly New Listings Total NZ (REINZ) Monthly New Listings Total NZ (REINZ) 140k 12,000 120k 10,000 100k 80k
Slide 135: Recent commentary notes market improvements
5. OneRoof Your essential property platform Grow listings revenue Recent commentary notes market improvements For personal use only ANZ property Focus - October 2023 “The Government’s policy changes are likely to put upward pressure on house prices”. Kiwibank – First View – 16 October 2023 “The hous
Slide 136: Residential listings monetisation is growing
5. OneRoof Your essential property platform Grow listings revenue Residential listings monetisation is growing Residential listings conversion has seen strong continuous growth, with further For personal use only opportunity to increase nationally OneRoof Digital Residential for Sale Listings Upgrad
Slide 137: Opportunity to grow listings revenue by upselling packages
5. OneRoof Your essential property platform Grow listings revenue Significant opportunity to grow listings revenue by upselling to OneRoof’s higher packages For personal use only Auckland Rest of NZ (Package pricing excl. GST) (Package pricing excl. GST) Highest Available Package Avg Yield YTD Sep-2
Slide 138: Opportunity to grow listings revenue with Agents
5. OneRoof Your essential property platform Grow listings revenue Significant opportunity to grow listings revenue with Agents OneRoof – the preferred partner of the Real Estate industry For personal use only Create and transform National Sales force • Optimise distribution of current NZME sales tea
Slide 139: Three pillars to the OneRoof strategy
5. OneRoof Your essential property platform Accelerate non-listings portfolio Your essential property platform There are three pillars to the OneRoof strategy For personal use only Superior listings Grow listings revenue Accelerate non-listings experience and portfolio performance 139
Slide 140: Continue to grow non-listings revenue
5. OneRoof Your essential property platform Accelerate non-listings portfolio Continue to grow non-listings revenue For personal use only Partner for consumer solutions and services • Finance partnership • Expansion of home services integrations/widgets • Partner to provide opportunities for assisti
Slide 141: Your essential property platform Scorecard
5. OneRoof Your essential property platform Your essential property platform Scorecard For personal use only METRIC H1 2023 2026 Actual Target Audience 518k Reduce Audience Gap to #1 Engagement Gap to #1 of 139k Increase listing enquiries by - 100% Listings 42.6% of Auckland End of Year - 60% Upgrad
Slide 142: CEO closing
For personal use only 6. CEO closing Michael Boggs CHIEF EXECUTIVE OFFICER 142
Slide 143: NZME can leverage its strength to deliver shareholder value
6. CEO closing NZME can leverage its strength to deliver significant shareholder value creation For personal use only • NZME strength • NZME platforms reach 84% of the NZ population across a month 1 • 40-50% market shares in audio and publishing businesses, with further growth identified • High valu
Slide 144: Disclaimer
6. CEO closing Disclaimer For personal use only The information in this presentation is of a general nature and does not constitute financial product advice, investment advice, legal, financial, tax or any other recommendation or advice. This presentation constitutes summary information only, and yo
Slide 145: For personal use only
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