Nexstar Media Group, Inc. · NASDAQ:NXST
Nexstar Media — Investor Presentation (January 2023)
20 slides from Nexstar Media's investor presentation, January 2023
Slide 1: Investor Presentation
Nexstar Media Group, Inc. Investor Presentation January 2023 Perry A. Sook, Founder, Chairman & CEO Tom Carter, President & COO Lee Ann Gliha, EVP & CFO
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward- looking statements include information preceded by, followed by, or that includes the
Slide 3: Nexstar Media Group, Inc. Overview
Nexstar Media Group, Inc. Overview National Reach 9/30/22 LTM Revenue Composition Key National Properties: The CW, NewsNation, The Hill Digital / Other 8% % of U.S. Covered: 100% Growing Local Reach At Scale Political Advertising 5% Growing – 11% of Revenue in % of U.S. TV Households: 68% 2020 Elect
Slide 4: Year In Review
Year In Review Track Record of Stock Price Performance • One of the best performing stocks in all of 5 Year Nexstar Stock Price History media over the last twelve months $250.00 NXST Stock Price Performance: • Returned $892MM, 64% of free cash flow, 5 Years: +158% to shareholders during the LTM peri
Slide 5: Powerful National Brands with the Largest Local Station Group
Unprecedented Combination of Powerful National Brands/Reach with the Largest Local Station Group Engaging Local Audiences and Businesses at Scale Inimitable asset portfolio gives Nexstar the unique ability to offer both nationwide reach and local activation. Powerful National Brands National Reach N
Slide 6: Nexstar Digital is a Top 10 News & Information Property
is a Top 10 News & Information Property and Top 40 Overall Nexstar Digital reaches almost 35% of the U.S. digital audience, complementing its TV reach. • Nexstar Digital offers local and national advertisers a full suite of products Top 10 Digital and services including display, programmatic, mobile
Slide 7: The Reinvention of Broadcasting: What's Old is New Again
The Reinvention of Broadcasting: What’s Old is New Again Nexstar generates more free cash flow than its larger media peers. • Increasing investor focus on free cash flow generation as 10/18/22: Netflix Follows Broadcast-Centric Business Models After Years of Innovation (Source: Online Video News) th
Slide 8: Nexstar Content is Valuable
Nexstar Content is Valuable Nexstar produced and programmed content drives its ratings and revenues. Valuable Network Nexstar Produces 300,000 Hours of Local Content Each Year Relationships Nexstar Local Station Nexstar Local Station Content Viewership Advertising Revenue • Nexstar’s local news and
Slide 9: Record-Setting Revenue Trends
Record-Setting Revenue Trends Ten* of the last eleven quarters set all-time quarterly high levels of net revenue for Nexstar. LTM 9/30 Net Revenue ✓ Continued execution on local and national ($ in millions) television advertising sales with incentive plans geared to new business development in local
Slide 10: Diversified Revenue Composition
Diversified Revenue Composition Nexstar’s revenue is contractual, diverse and predominantly local. LTM 9/30/22 Net Revenue Composition – By Type YTD 9/30/22 Core TV Ad. Rev. Composition – By Category Over 50% of LTM Revenue is from Approximately 2/3 is from categories which represent less contractua
Slide 11: "Local Moat" Protects and Drives Revenues
“Local Moat” Protects and Drives Revenues ~70% of Nexstar’s core television advertising and the substantial majority of political television advertising revenue is from resilient local sources. Local Assets Why is this important? • 200 local broadcast • Local advertising (generally stations each wit
Slide 12: National Advertising is a Growth Opportunity
National Advertising is a Growth Opportunity The national television advertising market is twice the size of the local advertising market. The Opportunity 2022E U.S. Television Advertising Market Size • Growing Nexstar national assets of NewsNation (the fastest growing cable news network), The CW an
Slide 13: Multiple Organic Opportunities for Outsized Long-Term Value Creation
Multiple Organic Opportunities for Outsized Long-Term Value Creation ATSC 3.0 (NEXTGEN TV) ABC, CBS, NBC and Fox are High speed data transmission Fox News and CNN are expected 2 expected to generate, on 3 applications could generate up 1 to generate $2.9BN and $1.7BN , average, $5BN of revenue and t
Slide 14: America's Fastest-Growing Cable News Network
1 America’s Fastest-Growing Cable News Network Leveraging our core competency in news, we are building a profitable and differentiated national news network. • News networks are the most watched cable networks First Class Programming ‒ Top 3 cable networks in 2022: #1 Fox News, #2 ESPN, #3 MSNBC (So
Slide 15: One of America's Major Broadcast Networks
2 One of America’s Major Broadcast Networks In September 2022, Nexstar acquired a 75% interest in The CW Network for no consideration. Nexstar is the #1 CW affiliate* covering 32% of TVHH, including 5 of the top 10 DMAs. The Nexstar - CW Opportunity ✓ Solidifies and Creates Better Revenue Opportunit
Slide 16: ATSC 3.0 (NEXTGEN TV) Opportunity
3 ATSC 3.0 (NEXTGEN TV) Opportunity Nexstar is upgrading its spectrum to allow it to monetize it via B2B data transmission services and other opportunities. • Nexstar is nearing full utilization of its existing spectrum capacity Nexstar Leads the Way in ATSC 3.0 Deployment and conversion to NEXTGEN
Slide 17: Long Term Industry Projections Imply Long Term Revenue Growth
Long Term Industry Projections Imply Long Term Revenue Growth Projected Local Broadcast Industry Advertising Revenue Growth ($ in millions) $30,000 $26,754 $26,851 $25,951 $26,238 $26,613 $25,000 $21,453 $23,309 $23,770 $23,772 $23,958 $22,508 $20,557 $20,000 $15,000 $10,000 $5,000 $0 2021 2022 2023
Slide 18: Free Cash Flow and Capital Allocation
Free Cash Flow and Capital Allocation Nexstar returned $892 million, or 64% of FCF to shareholders in the LTM period ended 9/30/22 and increased its 2023 dividend by 50% to $5.40 per share p.a. FCF and Shareholder Returns Capital Allocation Priorities Adjusted Free Cash Flow % of Adjusted Free Cash
Slide 19: Nexstar ESG Principles and Actions
Nexstar ESG Principles and Actions Ranked as #1 Best ESG for MidCap Media Companies in the Institutional Investor 2023 Survey and Awarded an ESG rating of “Low Risk” by Morningstar Sustainanalytics Environmental Social Governance Key • Limit our impact on the • Fact-based, unbiased journalism • Maxi
Slide 20: Invest in Nexstar
Invest in Nexstar NXST has one of the best short and long-term stock price performances in media, one of the highest percentage return of free cash flow to shareholders in media, solid long-term growth prospects, and a low valuation ✓ Strong Continued Financial and Stock Price Performance: YTD 2022,
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