NZME Limited Annual Report

31 March 2017



Dear Shareholder

NZME LIMITED ANNUAL REPORT

The NZME Limited Annual Report for the period ended 31 December 2016 is now available on our website at
http://www.nzme.co.nz/investor-relations/financial-reports/.
The Board has elected not to prepare a Concise Report for the year ended 31 December 2016. NZME’s Half Year Report for
the six months ending 30 June 2017 will be available by September 2017.
You have the right to receive, upon request and free of charge, a copy of the Annual Report and the Half Year Report. If you
wish to receive a printed copy, you can request your printed copy by visiting the Link Market Services Investor Centre at
https://investorcentre.linkmarketservices.co.nz and updating your communication preferences by 26 April 2017. You will
require your CSN/Holder Number and Authorisation Code (FIN) to obtain access to your holding information. Alternatively,
please complete the section below and return this form to our registry, Link Market Services by 26 April 2017.
I would like to receive a printed copy of the Annual Report for 2016.
Please mark this box with a “√” if you wish to receive a printed copy

Email Communications
If you do not currently receive your NZME Limited investor communications electronically, we would like to take this
opportunity to encourage you to elect to do so by providing your email address details online or by completing the section
below. Electronic communications are quick, cost effective and environmentally friendly.

I wish to receive all my shareholder communications via email where possible to the following email address:

_____________________________________________________________________________________________________

Please return this form to our share registry, Link Market Services by:

 Mail in the reply-paid envelope provided
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 Scanning and emailing it to operations@linkmarketservices.co.nz
(Please use “NZME Annual Report” as the subject line for easy identification)
If you have any further questions please do not hesitate to contact our share registry on 09 375 5998 or email
enquiries@linkmarketservices.co.nz.

Yours sincerely


Michael Boggs
CEO
NZME Limited

---

1
ANNUAL REPORT
NZME LIMITED
For the year ended 31 December 2016

3
Contents
FY16 Results Summary 4
Chairman's Letter – Firm Foundations 6
Audiences Captured 8
CEO's Letter – Business
Transformation Continues 10
NZME at the Centre of
What New Zealanders Want 12
New Initiatives & Development 13
CFO's Letter – Performance You Can Count On 14
Our People 18
Our Communities & the Environment 21
The NZME Board 23
The NZME Executive Team 24
Corporate Governance 26
Statutory Information 30
Proposed NZME / Fairfax NZ Merger 37
Non-GAAP Measures Explained 38
Consolidated Financial Statements 45
Independent Auditor's Report 100
Directory 106
This annual report is dated 31 March 2017
and is signed on behalf of the Board of Directors by:
Sir John Anderson
Director
Carol Campbell
Director
2

STATUTORY NPAT
$ 74 .5 m
▲ 74%
FY15 $42.9
TRADING REVENUE
1
$407.4m
▼ 6%
FY15 $433.0m
TRADING EBITDA1
$71.9m

0%
FY15 $71.8m
2
PRO FORMA EPS1
14.2cps
PRO FORMA NPAT
1
$27.8m

1%

FY15 $27.5m
FINAL DIVIDEND FULLY IMPUTED
6.0
cps
3
SCHEDULED FOR PAYMENT ON 28 APRIL 2017
FULL-YEAR DIVIDENDS 9.5cps
5
FY16
Results
Summary
4
(1) Trading Revenue, Trading EBITDA, Pro forma NPAT and Pro forma EPS are non-GAAP
measures that are explained and reconciled on pages 38-43 (2) The FY15 NZME
segment result in the APN FY15 financial statements was $74.9m, this has been
adjusted for $3.1m of standalone costs incurred in H2 16 to provide a like-for-like
comparison. (3) A supplementary dividend of 1.06 cents per share will be
payable to shareholders who are not tax resident in New Zealand and who
hold less than 10% of the shares in NZME Limited.

67
“Our focus has enabled
your company to better
the market”
Sir John Anderson
Chairman
highly experienced, dedicated and
talented management and staff,
ably led by CEO Michael Boggs who
joined NZME in March 2015 and
was appointed as CEO in April 2016.
They continue to create and deliver
premium innovative content and
experiences to New Zealanders.
After working in a senior finance
capacity with NZME in FY16, we were
very pleased to see Mike Moran
appointed as Chief Financial Officer
in February 2017. Previously a Partner
at Deloitte, Mike has more than 15
years of international experience in
assurance and advisory.
The Board would like to thank our
employees, who in the last 12 months
have worked extremely hard to
complete the demerger from APN,
a complex business integration, and
our listing on the stock exchange.
These processes have been achieved
whilst continuing to build and excite
our audience in order to grow the
business and deliver solid financial
performance and returns
for shareholders.
With exceptional content and
distribution capability, we are
uniquely positioned to take
advantage of many opportunities
for realising the shareholder value
we see in this exciting and dynamic
industry.
Firm Foundations
I
n our first full-year result since
the listing of NZME on 27 June
2016, I am pleased to report
the company generated stable
earnings from its integrated media
and entertainment business, despite
the challenges faced in advertising
markets. This result has enabled the
Board to declare a fully-imputed final
dividend of 6.0 cents per share to be
paid in April, making 9.5 cents per
share in dividends for the full year.
The creation of NZME brought
together major New Zealand
Publishing, Radio and e-Commerce
businesses into a single and unique
multi-platform media company.
NZME is now an audience-centric
business focusing on the pillars of
News, Sport and Entertainment.
We are very proud to be a pure
New Zealand integrated media and
entertainment company, with local
management that understands
our audience of 3.2 million Kiwis
1
.
Bringing Print, Radio and Digital
together under a single roof allows
us to leverage revenue opportunities
from cross-platform advertising and
achieve significant operational and
cost efficiencies.
Following completion of the
integration, we now have a more
efficient and agile business. We aim
to take advantage of exciting new
opportunities to entertain
and connect New Zealanders and
engage audiences for our
advertising customers.
Our focus on business performance,
investment in people and talent, and
delivering efficiencies has enabled
our company to better the market in
Print advertising revenue decline and
Digital advertising revenue growth
2
.
In addition, our total audience grew
5% in FY16
1
.
Given challenging advertising
markets, in which some segments
of advertising declined by more than
15%
2
, we were pleased that we
held Trading
3
EBITDA stable on the
previous year.
While Trading
3
revenue declined
6% for the year, the improvement in
the second half was encouraging,
suggesting our initiatives are
starting to bear fruit. In delivering
stable EBITDA, cost reduction was
important and will continue to be
a focus for NZME and, indeed, the
whole industry.
As we face an increasingly
fragmented media market, the
proposed merger with Fairfax New
Zealand (“Fairfax”) remains a priority.
The transaction if approved will
underwrite the competitiveness of
New Zealand content generation
and delivery. As part of the process
to obtain regulatory approval for the
transaction, we have made extensive
submissions and participated in a
conference with the New Zealand
Commerce Commission (“NZCC”).
The NZCC is due to respond with a
final determination by 2 May 2017.
If the determination is positive we
will seek to complete the transaction
as soon as practicable. We will
consider our options if the merger is
not approved.
NZME’s mission is to be at the centre
of what New Zealanders want by
sharing great stories, entertaining,
engaging and connecting with all
New Zealanders. Our company has
“With exceptional
content and distribution
capability, we are
uniquely positioned”
(1) Nielsen CMI, November fused database: Last twelve months Q4 15 – Q3
16 (population 10 years +). Based on unduplicated weekly reach of NZME
newspapers, radio stations, and monthly domestic unique audience of
NZME’s Digital channels. (2) PwC NPA Quarterly performance comparison
report Q4 2014 – Q4 2016. IAB / PwC New Zealand Q3 2016 Interactive
Advertising Spend Report; Digital excluding search and directories, and
social media (NZ market only). (3) The FY15 and FY16 Statutory Results are
not reflective of the NZME business going forward due to the impact of
the demerger, tax payments, business closures and divestments. Trading
EBITDA and Pro forma NPAT more appropriately reflect the company in its
new structure. Reconciliation between Statutory, Trading and Pro forma
financial measures can be found on pages 38-43.

Jared
Savage
Amanda
Linnell

Managing
Editor
Investigative
Journalist
Our national and local presence allows us to offer
advertisers broad access to their target markets.
NZME REACHES:
68%
of the
South Island
1
84%
of the
North Island
1
87%
of
Auckland
1
On a typical day, by 9am 73%
1
of New Zealanders have
read, watched, listened to, or otherwise engaged with NZME.
(1) Nielsen CMI, November fused database: Q4 15 – Q3 16 (population 10 years +). Based on unduplicated weekly
reach of NZME newspapers, radio stations, and monthly domestic unique audience of NZME’s Digital channels.
Audiences Captured
Liam Dann
NZ Herald Business
Editor at Large
89

11
Business
Transformation
Continues
S
ince joining NZME in March
2015, I have driven the ongoing
business transformation to
become an integrated media and
entertainment business and we have
continued to realise the efficiencies
created by this change. We believe
there is further significant medium
term opportunity to deliver synergies
from this multi-platform approach.
While we will never be comfortable
with a revenue decline we were
pleased to deliver a stable Trading
1

earnings outcome for shareholders
in FY16 given the challenges faced in
advertising markets.
Trading
1
EBITDA, which we think
reflects the company today, was
stable compared to FY15. A 6%
reduction in costs contributed to this
result, primarily driven by business
transformation and integration.
Trading
1
revenue was down 6%, but
with an improved performance in the
second half, reflecting strong growth
in Digital and a slowing rate of decline
in Print and Radio. We performed
better than the industry in several of
our key advertising markets.
My executive team and I have
established a clear strategy for NZME.
We have a framework for growing
our business that focuses strongly
on financial performance but also
fosters innovation.
At the time of our interim results
in August last year, we identified
seven key priorities that we believe
will deliver improved shareholder
value. Already we have made
good progress on these priorities
by growing audience, slowing the
decline in Print revenue, returning
Radio agency revenue to growth,
driving strong Digital revenue growth,
achieving major cost savings,
developing talent and progressing
the proposed merger with Fairfax.
NZME grew audience reach by 5% in
the year across its news, sport and
entertainment brands to 3.2 million
Kiwis
2
. Digital audience growth was
particularly strong at 19%
2
in the
year, driven by successful product
We continue to transform
NZME to lift performance,
grow audience and optimise
our products
by exciting new platforms such as
watchme.co.nz.
Following the success of NZ Herald
Focus (news video show) in our
digital division, NZ On Air has funded
production of our new regional video
service, Local Focus, and our first
long-form documentary video
“Under the Bridge”.
We will also launch a redesigned
nzherald.co.nz website in 2017.
The new site will utilise the highly
regarded Washington Post content
management system and other
publishing tools. This development
will move us from an old-world,
desktop-driven, text-first platform to
a mobile and social-first, multimedia,
agile, future-proof platform.
We have delivered very strong growth
in our social network following, which
brings over 40% of our audience to
our platforms, reinforcing our content
branding. We have also implemented
a data lake, consolidating our
registered user databases across our
platforms, to offer new cross-platform
content and audience leverage to
serve and grow our audience.
NZME aims to be at the centre
of what New Zealanders want by
sharing great stories, entertaining,
engaging, and connecting all New
Zealanders. To achieve this we are
focused on the four medium term
pillars of the business: our audience;
revenue; being agile, and our people.
Looking forward, we aim to improve
shareholder value through further
Michael Boggs
Chief Executive Officer
development and initiatives. In a
typical day, by 9am 73% of Kiwis
have read, watched, listened to, or
otherwise engaged with NZME
2
.
We continue to transform NZME
to lift performance, grow audience
and optimise our products. In Print
we stabilised circulation and grew
readership with strategies such as
the relaunch of the Herald on Sunday
lifestyle magazine, to focus on Travel,
a stronger commercial proposition.
The New Zealand Herald is the
country’s leading newspaper and
our most important Print masthead.
We are focussed on extending its
readership and ensuring it remains
the number one choice for Print
readers and advertisers.
In Radio, improvements in the agency
sales model resulted in a return to
agency revenue growth. Agency
sales are via The Radio Bureau, a joint
venture with Mediaworks, and our
new Direct Agency Sales team, which
has shown considerable growth year
on year.
We continue to focus on direct revenue
growth and launched a new breakfast
show for The Hits in Auckland, with
high profile talent; Sarah Gandy, Sam
Wallace and Toni Street in February
this year. Newstalk ZB has the largest
share of any commercial station in New
Zealand
3
, showcasing New Zealand’s
number one breakfast host, Mike
Hosking. We are looking to replicate
the success of our strongest stations
across the portfolio.
Our fantastic home-grown content
has been very well received and
helped us lift video streams within
NZME’s platforms by 69% in the last
year
4
, which is important as it’s one
of the strongest areas of growth
in Digital advertising. This has
contributed to strong Digital revenue
growth of 24%
1
in the year, largely
driven by mobile and video growth
across nzherald.co.nz, supported
(1) The FY15 and FY16 Statutory Results are not reflective of the NZME business going forward due to the impact of the demerger, tax payments, business
closures and divestments. Trading EBITDA and Pro forma NPAT more appropriately reflect the company in its new structure. Reconciliation between
Statutory, Trading and Pro forma financial measures can be found on pages 38-43. (2) Nielsen CMI, November fused database: Last twelve months Q4
15 – Q3 16 (population 10 years +). Based on unduplicated weekly reach of NZME newspapers, radio stations, and monthly domestic unique audience of
NZME’s digital channels. Note: Most recent data point available is last twelve months to Q3 16. (3) GfK - Radio Trended Network Data, Commercial Major
Markets 2016, Station Share (%), All 10+, Mon-Sun 12mn-12mn. Note: T1 2014 – T2 2015 conducted by previous provider TNS, T1, T2, T3 2016 conducted by
current provider GfK. (4) Brightcove analytics, January 2015 - December 2016.
10
growing audience reach, retaining
revenue in print and ensuring radio
returns growth. We want to grow new
revenue streams across the company
whilst managing costs and capital well.
Developing our people and talent will
remain fundamental to our success.
We are determined to make further
progress in these areas in the current
year as we see them as key drivers of
shareholder value.
I would like to echo the Chairman’s
comments about the efforts of our
dedicated employees. It has been
a year of enormous change for the
industry and NZME. Management
and staff have responded to this
challenge, implemented our plans
and delivered solid operating
and financial outcomes. This is a
testament to their hard work and
diligence under sometimes testing
circumstances.
I also thank our amazing New
Zealand audiences, our suppliers,
business partners, advertising
customers and shareholders for their
continuing support.
With our unique multi-channel,
integrated media offering combined
with some of New Zealand’s leading
brands and talent, we have an
exciting opportunity ahead of us.

1213
New Initiatives & Development
• Create Me – maximises the integrated, multi-platform sales
proposition, delivering revenue growth via Video, Branded Content,
and Experiential products.
• WatchMe – unique video-on-demand platform showcasing NZ
video content, utilising influential talent.
• NZ Herald Focus – Digital video news show that meets the growing
consumer demand for mobile video content.
• Driven Digital platform – user generated classifieds and auto
listings, consistently hosting over 20,000 listings.
• Herald Homes App – enhances NZME’s real estate Print assets with
direct access to additional Digital content.
• KPEX – joint venture trading desk for Digital advertising, between
four New Zealand media businesses (NZME, Fairfax NZ, Mediaworks
and TVNZ).
• Ratebroker.co.nz – a joint venture mortgage, finance and insurance
aggregator platform enabling consumers to easily purchase these and
other future services directly online.
• RestarantHub.co.nz – a joint venture table management and online
restaurant booking platform.
• Chinese New Zealand Herald – a joint venture which has created a
Chinese language version of nzherald.co.nz.
• Events – NZME ran 25 events in FY16, including the new
Live Well Festival and the PwC Herald Talks series.
• iHeartRadio – new App launched in early 2017 with a registration
wall and enhanced user functionality.
• iHeart concerts – held in FY16 included Broods, Delta Goodrem,
Temper Trap, Cold War Kids, 5th Harmony and Shihad.
• WTV, Humm FM and Radio Wanaka – expanded Radio
via exclusive commercial Radio partnerships.
NZME at the Centre of
What New Zealanders Want
Audience
Audience-centric, content-
driven media business
Revenue
Customer-focussed
revenue business
Agility
A future-focused, innovative
and agile business
People
Home of the best talent
Leverage insights to
maximise audience
targeting and engagement
Enhance regional
content and expand
Digital verticals
Proactively optimise
existing products, e.g.
new Radio breakfast shows
Invest in new
revenue streams
Launch new content
management system and
redesigned nzherald.co.nz
Leverage data to maximise
Digital revenue
Develop our leadership,
talent, Digital, social and
data skill-sets
Simplify and enhance
our sales and customer
relationship systems
INITIATIVES
Listening
To our customers and
providing unique solutions
Simplifying
How our customers engage
with us and each other
Expanding
Our content and delivery to
reach more New Zealanders
Leveraging
Our brands, data capabilities
and integration
Developing
Innovative ways to connect
buyers and sellers
Enabling
The best people with the
right tools
HOW WE’RE
DOING IT
FOCUSED
ON
Sharing great stories, entertaining, engaging and connecting all New Zealanders.

1415
(1) The FY15 and FY16 Statutory Results are not reflective of the NZME business going forward due to the impact of the demerger, tax payments, business
closures and divestments. Trading EBITDA and Pro forma NPAT more appropriately reflect the company in its new structure. Reconciliation between Statutory,
Trading and Pro forma financial measures can be found on pages 38-43. (2) PwC NPA Quarterly performance comparison report Q4 2014 – Q4 2016. (3) IAB /
PwC New Zealand Q3 2016 Interactive Advertising Spend Report; digital excluding search and directories, and social media (NZ market only).
distribution costs, agency
commissions, which are
in-line with the revenue
decline, and marketing.
We continue to explore future cost-
saving opportunities and are currently
implementing a new CRM system,
along with new planning, booking and
scheduling tools, to help us better
understand our customers and better
manage the sales pipeline. This is not
only expected to reduce people and
content costs, but also drive revenue
growth across platforms.
We are also in the process of
improving our Print plant technology,
which will reduce both paper and ink
waste as well as people cost due to
enhanced automation of the printing
process. Further savings are likely due
to the instalment of the Washington
Post software as the time to produce
a piece of content will reduce
significantly, touch less hands, and
be easier to use across our assets
without incurring incremental cost.
Capital expenditure requirements are
relatively low. We spent just under
$15 million in FY16 and we expect to
spend a similar amount in the current
year. This allows us to maintain and
upgrade our systems and invest
in content and some new
business initiatives.
agency sales model were realised.
Direct Radio revenues were
maintained in Auckland, however
some regional markets remain
challenged. Returning total direct
Radio revenue to growth will be a
focus for FY17.
Other Radio revenues, including
iHeartRadio and NZME Events, grew
3% year-on-year to $6.2 million in
FY16. Further growth is expected
in FY17 with the expansion of the
PwC Herald Talks speaking series to
Wellington and Christchurch, and
expanding the Viva Sessions. A new
iHeartRadio app was launched in
Early 2017 with a registration wall,
enhanced user functionality and
improved advertising targeting.
NZME achieved strong Digital
revenue growth of 24% in FY16,
against market growth of 16%
3
,
largely driven by mobile and Video
advertising revenue growth. Total
programmatic revenue grew
65% year-on-year driven by the
performance of KPEX, a joint venture
trading desk for Digital advertising,
between four New Zealand
media businesses (NZME, Fairfax,
Mediaworks and TVNZ).
E-Commerce revenue from GrabOne
decreased 19% in FY16, however the
decline softened in H2 for 2016 due
to continued focus on improving
user experience, and evolving from
a pure "daily deals" site to an
"always-on" model.
Continued focus on cost management
led to a 6% reduction in costs year-
on-year. The transformation and
integration of Publishing, Radio and
e-Commerce was the primary driver of
the reduction in people costs. We also
made important savings in print and
Performance You Can Count On
S
ince joining NZME I have been
focused on providing value
to our shareholders and we
have delivered a stable result for the
company, allowing us to pay a total
dividend of 9.5 cents per share for
the year.
As has been widely described,
the media sector faces significant
headwinds in several advertising
markets, particularly Print advertising,
which represented 30% of our
revenue in FY16. However, other
segments, such as Digital advertising,
are growing strongly.
As the CEO and Chairman have
detailed, NZME’s strategy is to
maintain our traditional sources of
revenue and pursue growth in Digital,
while at the same time managing
costs to maximise efficiency and
support returns.
Maintaining a strong and flexible
balance sheet and effective capital
management underpins our ability to
manage growth and risks and deliver
attractive shareholder returns.
We believe we made significant
progress on this strategy in
FY16. Trading
1
EBITDA was stable
compared to FY15, supported by
strong growth in Digital revenue and
a 6% reduction in costs, primarily
driven by business transformation
and integration.
Group Trading
1
revenue declined
6% in the year, reflecting strong
growth in Digital and a slowing
rate of decline in Print and Radio.
The revenue decline slowed in the
second half of the financial year as
a number of our initiatives began to
take effect. After adjusting for the
impact of divestments and business
closures, Pro forma
1
Group revenue
declined 4%.
Given the significant changes to
our company structure brought
about by the demerger, there
is material divergence between
our statutory reported financial
measures, and those that reflect
NZME as it stands, which we refer
to as our Trading
1
result.
On pages 40-41 you will see the
reconciliation between statutory
GAAP measures and our Trading
1

result. We think the Trading
1
result
more appropriately reflects the
company’s performance. Page 42
shows the reconciliation of Pro
forma
1
results, which is essentially
the Trading
1
result adjusted for
standalone costs yet to be incurred,
and earnings from divested
businesses in FY16.
One of our key priorities has been
to slow the decline in Print revenue
and, in this area, we are having some
success. Trading
1
revenue in Print
declined 9%, however, adjusting for
divestments and business closures,
our Pro forma
1
Print revenue was
down only 6% to $237.7 million.
This represents 59% of Group Pro
forma
1
revenue. Given the reported
15% decline in the print advertising
market
2
, we are encouraged
by this result.
Radio and Experiential contributed
28% of FY16 NZME Trading
1
revenue,
and at $114.8 million was 4% lower
than FY15. Radio agency revenue
returned to growth in the second half
as ongoing benefits of an improved
“We have a prudent
and sustainable
capital structure
that will support
implementation of
our strategy”
Pro forma
1
EPS
was 14.2 cents,
supporting the final
dividend of 6.0 cents to be
paid on 28 April 2017. The 9.5
cents declared for the year is in
line with dividend policy of 60-80%
of Pro forma
1
N PAT.
Net debt as at 31 December 2016
was $95.9 million with an interest
rate of 3.8%. The company has
healthy cash flow, sound liquidity
and undrawn bank facilities of
$48.0 million. We have a prudent
and sustainable capital structure that
will support our business needs and
implementation of our strategy.
Mike Moran
Chief Financial Officer

6AM - 10AM WEEKDAYS
MIKE HOSKING
NZ’S NUMBER ONE
BREAKFAST HOST
1
6AM - 8:30AM WEEKDAYS
Fletch, Vaughan
+ Megan
Stace
& Flynny
3PM – 7PM WEEKDAYS
MATT HEATH
JEREMY WELLS
6AM – 10AM
WEEKDAYS
1716
(1) Gfk Radio Audience Measurement
Total NZ 2/2016 All 10+ Mon-Fri
6am-8.30am, % share

19
role-based targeted wellbeing
programs, fatigue management
and an even bigger year of
Better Me programs.
WELLNESS WEEKS
The Wellness Committee hosted two
wellness weeks: one in April 2016 and
another in October 2016.
A variety of guest speakers shared
simple and achievable personal
strategies that our people could
incorporate into their day-to-day lives
to help improve their financial, mental
and personal health.
We also shared the personal success
stories of NZME people who had
made lifestyle changes that impacted
positively on their own overall health
and fitness.
Outside of Auckland, our network
of wellness representatives helped
establish and personalise Wellness
Week as appropriate for their sites,
including a swim challenge, a walking
bus through a local art exhibition,
blood donations and providing free
healthy snacks throughout the week.
DIVERSITY
At NZME we believe that everyone
should be free to be themselves.
We believe that a diverse workforce
is essential for us to deliver our
strategic objectives. For NZME,
diversity means the competitive
value in the difference of our people
in relation to gender, ethnicity, sexual
orientation, age, disability, religion or
cultural background.
We have a formal diversity policy
that is available to our people and
the public on our website and in
December 2016 we received 72
nominees to join our new Diversity
Committee. We are signed up and in
the certification process for Rainbow
Tick, to be an employer of choice for
people who are LGBTTI (lesbian,
gay, bisexual, transgender, takatāpui
and intersex).
NZME signed up as a Mayor’s
Youth Employment Pledge Partner
in Auckland to encourage youth
employment. We had stands at
JobFest (where over 300 youths
registered for jobs at NZME, over 40
left their CVs, and six participated in
face-to-face interviews) and Festival
of the Future (where we interviewed
over 30 prospective candidates).
The charts below and over the page
demonstrate our demographic
breakdown as at 31 December 2016:
OUR VALUES
Our people live and breathe our values of being "Connected, Curious and Confident". As
an incentive we’ve set in place a dedicated values-based reward and recognition initiative
– the three-tiered Reward Me programme. A "Shout Outs" nominations process allows
staff to acknowledge their colleagues, while each quarter we gather to announce
our "NZME Champions", recognising those who have gone above and beyond in
displaying our values. Finally at the end of the year we crown a select few who
have consistently excelled in demonstrating our values – our "NZME Legends".
Before we act, we seek to understand:
• We engage the right people
• We share ideas
• We listen carefully to our colleagues,
audiences and customers
• Once we’ve made a decision, we all pull
together to get it done
Whether they’re fronting our brands, selling our
advertising products, driving new initiatives, or helping
to run our business, it’s crucial our people share a
common purpose.
We work hard to ensure everyone at NZME understands
and is aligned with our company's strategic goals
(what needs to be achieved) and our values (how these
should be achieved).
HEALTH AND SAFETY
In 2016, we transformed the way we
approached safety and wellbeing
across NZME with the introduction of
our two programmes Safeguard Me
and Better Me.
Our existing paper-based safety
system was replaced with a
comprehensive online tool allowing
people to report safety incidents
digitally regardless of their location.
We conducted a comprehensive risk
analysis across each department,
enabling us to introduce more
effective safety and risk management
practices. As a result we achieved
a 20% decrease in injuries requiring
medical attention.
NZME is proud to celebrate the
achievement of the Tertiary
Level rating under the Accident
Compensation Corporation’s
Workplace Safety Management
Practices Auditing Standards,
meaning our business
operates a continuous
improvement
framework for
workplace health and
safety management.
Additionally Safeguard Me and
associated leadership training was
rolled out, upskilling over 2,000
leaders and employees on recent
changes in Health and Safety
Legislation and the Safeguard Me
reporting system.
We also welcomed Better Me, NZME’s
wellness program focused on giving
our people the tools to maintain a
healthy lifestyle – both inside and
outside of work. Last year Better Me
included a host of New Zealand’s
most inspiring health and wellness
professionals coming in and sharing
their views on how best to maintain
great health and wellbeing.
In 2017 we plan on keeping up the
pace with key initiatives including
Our People
Our senior leaders are tasked with translating
our strategic goals and providing support to
ensure all employees are engaged. As part of
this, our people have set KPIs that are aligned
to the strategic goals and our NZME values of
being Connected, Curious and Confident.
Executive
Male
45%
Male
47%
Male
47%
Female
55%
Female
53%
Female
53%
Senior
Leadership
Te a m
Staff
Gender / Level
Age Group
55+
17%
45-54
21%
35-44
25%
25-34
27%
<25
10%
18
In delivering what we do, we boldly step up,
speak out and give it our best shot:
• We live outside our comfort zone
• We tell it like it is. What we say, we do.
• We keep it simple and get to the point
• We solve any issues at the source
• We persevere to make it happen
Then we dig deeper and ask questions:
• We get to the heart of the matter
• We live and breathe it. We take ownership.
• We try new things and new ways of working
• We see bridges not barriers, and where
necessary challenge the status quo
• We go the extra mile to discover
• And we make it fun

2021
Our People (continued)
Ethnicity
including undeclared
European
45%
Undeclared
43%
Asian
5%
Maori
3%
Other
1%
MELA
1%
Pacific
People 2%
Ethnicity
excluding undeclared
European
79%
Asian
9%
Maori
5%
Other
2%
MELA
2%
Pacific
People 3%
Full Time
70%
Part Time
8%
Casual
18%
Contractor
4%
Contract Type
Length of Service
<1Y1Y-2Y3Y-5Y6Y-10Y11Y-15Y16Y-20Y21Y-30Y30+Y
500
400
300
200
100
0
NZME is proud to be the home of New Zealand’s best
talent. We have several opportunities each year to
celebrate our people and many of our colleagues are
put forward to be recognised for their efforts locally and
internationally – from the Canon Media Awards,
the Radio Awards, PANPA, INMA, Pride in Print, to the
TVNZ Marketing Awards.
In 2016, NZME won the Media Business of the Year
award at the CAANZ Beacons Awards.
We also had a record number of 38 finalists at the Canon
Media Awards, where we took home 20 awards, including
Newspaper of the Year – 30,000-plus (The New Zealand
Herald), Photographer of the Year (Stephen Parker), Best
Editorial Campaign or Project (The Forgotten Millions) and
Best Sports Site (nzherald.co.nz/sport).

In 2016 we also won 21 awards at the NZ Radio Awards,
including Station of the Year (Newstalk ZB), The “Blackie”
Award (Hauraki Breakfast) and Best Community
Campaign (NZBCF Pink Star Walk).
2016 AWARDS
W
e support a safe
community and in 2016
we championed a number
of issues across our network – notably
the #StopTheHate cyberbullying
and #BetterThanThis domestic
violence campaigns.

The New Zealand Herald also
spearheaded a campaign for World
Vision called The Forgotten Millions
which reported the heartbreaking
stories from those affected by the
Syrian crisis, making the humanitarian
catastrophe instantly accessible for all.
NZME supports a number of
charitable organisations both at
a national and local level via its
Marketing Partnerships programme.
Spanning arts, sport, culture, health
& youth sectors, NZME brands
support The Halberg Sports
Awards, the NZ Pride Parade, the
Auckland Rescue Helicopter
and The Starship Foundation.
As part of our commitment to
diversity, we support and sponsor
New Zealand Asian Leaders (“NZAL”)
whose mission is to promote,
educate and build a critical mass
of current and emerging leaders.
We’re also partners in publishing the
Chinese New Zealand Herald.
Our Communities
& the Environment
In support of Te Reo we promoted
Māori Language Week across our
assets, and as part of our Hauraki 50th
anniversary celebrations supported
our team to be trained on proper
Māori pronunciation.
During the year we also supported
other initiatives, such as Shine (fund
raising for education), World Aids Day
and SPCA collections.
Throughout the country, NZME people
are supported and encouraged to
contribute to worthy causes. Our
Print and Production team received
paid volunteer days this year to raise
funds for the Auckland City Mission
and regularly participate in charitable
street collections.
Our talent regularly appear and
participate in a multitude of events
including local fun runs, the SkyCity
Stair Climb, and regional Relay for
Life events which raise money for the
Blood and Leukemia Foundation.
We care about keeping our beautiful
country clean. We’re one of the largest
Print companies in New Zealand and
NZME Print has an Enviro-Mark Gold
certificate which means we are gold
standard at reducing waste, working
efficiently and minimising harm to the
environment and our people.
Green Star is a tool that rates and
communicates the sustainability of
New Zealand’s commercial buildings.
Our new building at NZME Central
has achieved a 5 Green Star Rating
– New Zealand Excellence. NZME
Central also won the “best of the best”
Supreme Award in the prestigious
Property Council New Zealand Rider
Levett Bucknall Property Industry
Awards 2016 .
“We are gold
standard at reducing
waste, working
efficiently and
minimising harm”

23
The NZME Board
22
SIR JOHN ANDERSON
Independent Chairman
Sir John has extensive commercial
experience having held several
senior positions in the New
Zealand banking and finance
industry. Formerly the Chief
Executive Officer of the ANZ
National Bank, Sir John is a director
of T&G Global Limited (Deputy
Chairman). Sir John is a Fellow of
Chartered Accountants Australia
and New Zealand, Fellow of the
Institute of Financial Professionals
New Zealand, Fellow of the
Institute of Directors and a Life
Member of the Australian Institute
of Banking and Finance.
PETER CULLINANE
Independent Director
As the former Chief Operating
Officer of Saatchi & Saatchi
(Worldwide), and its Chief
Executive Officer (New Zealand)
and Chairman (Australasia) for
over eight years prior, Peter
is widely respected in global
advertising and marketing and
has extensive knowledge and
expertise in both Australasian
and global markets. Peter was
appointed to the APN Board in
November 2013. Peter is also the
founder and Chairman of Lewis
Road Creamery Limited. Peter
was previously on the Board of
WPP AUNZ Limited and SKYCITY
Entertainment Group.
CAROL CAMPBELL
Independent Director
Carol is a chartered accountant and
a member of Chartered Accountants
Australia and New Zealand. Carol is
a director of The Business Advisory
Group, a chartered accountancy
practice, where she advises privately
owned businesses. Prior to that, she
was a partner at Ernst & Young for
over 25 years. Carol has extensive
financial experience and a sound
understanding of efficient board
governance. Carol is a director of
NZ Post Limited, Kiwibank Limited,
Kingfish Limited, Marlin Global
Limited, Barramundi Limited, NPT
Limited, T&G Global and a number of
other private companies and is chair
of Ronald McDonald House Charities.
If the proposed merger with Fairfax NZ is approved, two further Board appointments will be made.

The NZME Executive Team
SHAYNE CURRIE
MANAGING EDITOR
Journalist for 25 years, in NZ and New
York, he has overseen major change
and innovation in newsrooms. 2016:
10-week scholarship at Cambridge
University UK, studying audience
patterns in the digital age.
MIKE MORAN
CHIEF FINANCIAL OFFICER
Previously a partner at Deloitte with
over 15 years’ international experience
in assurance and advisory. Initially
joined NZME on an interim basis just
prior to demerger from APN before
joining permanently in February 2017.
MATT WILSON
CHIEF OPERATING
OFFICER (Acting)
Over two decades at NZME with
leadership roles in finance, sales,
circulation, print and operations.
Developed NZME’s distribution
services business.
MICHAEL BOGGS
CHIEF EXECUTIVE OFFICER
Previously held transformational
finance, sales and operational
executive roles in financial services,
telco and consumer goods. Former
CFO of NZME. 2014 CFO of the Year.
LAURA MAXWELL
CHIEF COMMERCIAL OFFICER
Joined NZME in 2013. Previous General
Manager of Yahoo! NZ. Over 20 years
experience in media. Current Chair of the
NZ Interactive Advertising Bureau.
DEAN BUCHANAN
GROUP DIRECTOR
ENTERTAINMENT
Over two decades of experience
in developing world-class content
and talent in New Zealand and
internationally. Previous Managing
Director, NZME Radio.
MICHELLE HAMILTON
GROUP DIRECTOR
CULTURE & PERFORMANCE
Previous General Manager, Culture
at TRN. HR and Employee Brand
Manager at Event Cinemas, and
eight years at SkyCity in various
senior leadership roles.
ALLISON WHITNEY
LEGAL COUNSEL &
COMPANY SECRETARY
Joined NZME in 2013 with over
15 years’ legal experience both
in-house and in private practice,
including six years as in-house
counsel to a London-based
international media group.
SARAH JUDKINS
CHIEF STRATEGY OFFICER
Led the 2015 transformation and
integration of the Publishing, Radio
and Digital businesses into NZME.
20 years’ experience providing
strategic and transformation advice
to a wide range of businesses across
NZ and Asia.
SARAH WOOD
GENERAL MANAGER,
GRABONE
Over 15 years of commercial
experience in media, marketing
and business management. US-based
consultancy experience in brand
and business transformation.
LIZA MCNALLY
CHIEF MARKETING OFFICER
20 years’ marketing and sales
experience in the media industry.
Previously held senior management
roles at News Corp Australia.
2425

2726
Corporate Governance
1. GOVERNANCE
FRAMEWORK

As described in note 6.1 of the
consolidated financial statements,
on 11 May 2016, APN News & Media
Limited (“APN”), the then ultimate
parent entity of the Company
announced a demerger of 100%
of the Group to APN shareholders
(“Demerger”), subject to a majority
shareholder vote held on 16 June
2016. The Demerger was approved
by the requisite majority of APN
Shareholders and all other conditions
precedent to the Demerger were
satisfied or waived. The Demerger
was completed on 29 June 2016.
On 27 June 2016 the Company was
listed on the NZX Main Board and as
a Foreign Exempt Listing on the ASX
(both under the ticker code "NZM").
The ASX Foreign Exempt Listing
category is based on a principle of
substituted compliance recognising
that, for secondary listings, the
primary regulatory role and oversight
rests with the home exchange
and the supervisory regulator in
that jurisdiction. As such, NZME is
required to comply with a limited
set of ASX Listing Rules.
The Company’s corporate
governance framework, as
described in this section, therefore
primarily takes into consideration
contemporary standards in New
Zealand, incorporating the
NZX Corporate Governance
Best Practice Code
(“NZX Code”) and
the New Zealand
Financial
Markets
Authority’s Corporate Governance
in New Zealand Principles and
Guidelines (“FMA Guide”). The
corporate governance framework
and other information as described
herein, reflects the framework that
was implemented following the
demerger from APN.
The Board considers that the
corporate governance practices
it adopted and followed do not
materially differ from those required
by the NZX Code and the FMA Guide.
2. CONSTITUTION


The Company’s constitution
(“Constitution”) is filed on the
Companies Office website (http://
www.companies.govt.nz/co/1181195).
The Constitution specifies that the
maximum number of directors (other
than alternate directors) is eight. As at
31 December 2016, the Company had
3 directors.
The Constitution contains, amongst
other things, the requirements
regarding appointment and rotation
of directors, filling vacancies on
the Board, meetings of the Board
and Board committee proceedings,
and appointing alternate directors.
The Constitution also requires the
Company to comply with the NZX
Listing Rules for so long as it is listed
on the NZX.

3. CHARTERS AND
POLICIES


The following charters and policies
have been adopted by the Company
and are available on the Company’s
website under the Corporate
Governance section (http://www.
nzme.co.nz/corporate-governance/):

• Code of Conduct and Ethics
• Diversity Policy
• Editorial Code of Ethics
• Fraud Policy
• Market Disclosure Policy
• Whistleblower Policy
• Securities Trading Policy
• Audit & Risk Committee Charter
• Governance & Remuneration
Committee Charter
• Risk Management Policy
The Company’s Code of Conduct
and Ethics governs the Company
and its subsidiaries’ commercial
operations and the conduct of
Directors, employees, consultants
and all other people when they
represent the Company and its
subsidiaries, together with the
Company. The current Code of
Conduct and Ethics was adopted
on 27 June 2016 and is available via
the Company’s website. Reporting of
breaches of the Code is encouraged
and steps for doing so are set out in
the Code of Conduct and Ethics and
the Whistleblower Policy.
The Board of the Company has
certain expectations of the Group
in relation to its interactions with
customers, shareholders, employees
and the broader community.
The Code of Conduct and Ethics
comprises certain fundamental
principles and demonstrates the
high standards of conduct
expected of NZME.
Separate policies (as listed above)
applicable to the Company are
also relevant to the conduct of
Company including policies dealing
with securities trading and inside
information, market disclosures,
whistle blowing, diversity, fraud,
editorial ethics and other matters.
4. THE BOARD OF
DIRECTORS
4.1 Role Of The Board
The business and affairs of the
Company is managed under the
direction and supervision of the
Board. The Directors acknowledge
their duty to act in good faith and in
the best interest of the Company. The
Board is therefore responsible to the
shareholders for the performance of
the Company, including determining
the Company’s objectives and
the strategies to achieve those
objectives. The Board meets at
regular intervals, and as otherwise
required, to ensure that the Board
is able to exercise its duties and
perform its functions appropriately.

4.2 Director Independence
& Profile
All of the Company’s directors
are independent directors for the
purposes of the NZX Listing Rules.
The profile for each Director is
available on the Company’s website
(http://www.nzme.co.nz/corporate-
governance/board-members/)
and on page 25 of this Annual
Report. Details regarding Directors’
remuneration is available in section 1
of the Statutory Information section
on page 32 of this report. Also
refer to the Statutory Information
section for further information
regarding the date of appointment
and remuneration of each Director.
The roles of the Chairman and Chief
Executive Officer are exercised by
different persons.
4.3 Nomination & Appointment
Directors are appointed by the
Company’s shareholders, with
rotation and retirement being
determined by the Constitution.
The Board may appoint Directors
to fill casual vacancies. Directors
appointed to fill casual vacancies
are required to retire and stand
for election at the first annual
shareholders meeting after their
appointment. The Governance
& Remuneration Committee
recommends to the Board
potential candidates for
appointment as Directors.
4.4 Induction & Access To
Information & Advice
New Directors are provided with
information about the Company,
its operations and the environment
and markets in which it operates in a
personalised induction to meet the
particular needs of each individual
Director. All Directors have access
to the advice and assistance of
the Company Secretary on the
Board’s affairs and governance
matters. In addition, all Directors may
access such information and seek
independent advice as they consider
necessary to fulfil their duties and
responsibilities.
4.5 Skills & Experience
The Governance & Remuneration
Committee reviews, and makes
recommendations to the Board
regarding, the composition of the
Board on an ongoing basis to ensure
that it is comprised of members
who provide the required breadth
and depth of experience and
knowledge to achieve the objectives
of the Board. It also considers and
recommends to the Board the
appointment of additional Directors
to provide the expertise to achieve
the strategic and economic goals of
the Company.
4.6 Directors & Officers Insurance
In accordance with Section 162 of
the Companies Act 1993 and the
Company’s Constitution, NZME has
indemnified and arranged insurance
for all Directors and executive
officers to the extent permitted
by law for liabilities arising out of
the performance of their normal
duties as Directors and officers. The
total amount of insurance contract
premiums was $149,000.

2829
BoardOfficers
A
As atMaleFemaleMaleFemale
31 Dec 20162156
31 Dec 2015 20BB
independent review of the Group’s
risk management framework,
including:
• Review and approval of the risk
management policy;
• Receiving and considering reports
on risk management;
• Assessing the effectiveness of the
Group’s responses to risk; and
• Providing the Board with regular
reports on risk management.
The Group has a formal Risk
Management Policy and is
committed to the consistent,
proactive and effective monitoring
and management of risk throughout
the organisation, in accordance
with best practice and the NZME
Risk Management Framework and
Guidelines.
The Board is ultimately responsible
for the effectiveness, oversight
and implementation of the Group’s
approach to risk management.
The Audit & Risk Committee is
responsible for the oversight and
independent review of the NZME
Risk Management Framework and
Guidelines, and assisting the Board to
discharge its oversight responsibility
for risk management.

The Chief Executive Officer (“CEO”)
is responsible for:
• The management of strategic,
operational and financial risks of
the Group;
• Continually monitoring the Group’s
progress against financial and
operational performance targets;
• The day-to-day identification,
assessment and management of
risks applicable to the Group;
• Implementation of risk management
controls, processes and policies
and procedures appropriate
for the Group;
• Driving a culture of risk
management throughout
the Group.

The NZME Risk Committee acts as a
governance forum to assist the NZME
CEO and the Group Executive in
fulfilling their corporate governance
responsibilities. This Committee
provides assurance that the following
aspects are managed appropriately:
•  Strategic and Operational Risk
Management;
•  Work, Health and Safety matters;
• Legal, regulatory and policy
compliance;
• Technology and Security matters;
• Business Continuity Planning.

During the year the Group had a Risk
& Compliance Manager that was
responsible for providing guidance
where required and developing tools,
templates and policies that facilitate
the identification, management and
reporting of risk and support the
overall Risk Management Framework
and Guidelines. Subsequently the
Group appointed a Head of Risk,
Compliance and Financial Reporting.

The Group is an integrated media
and entertainment company and
is subject to diverse types of risk
including, but not limited to legal
and regulatory compliance, financial
and market, government policy
and political, reputation and
brand, operational risks and
trading conditions.

The Group recognises that in order
to achieve its strategic objectives it
must be willing to take and accept
informed risks. Risks relating to
innovation, attracting and retaining
talent, and content to drive
audiences and address the needs of
advertisers are encouraged within
defined parameters. However in
doing so, it is not acceptable to trade
off financial or strategic returns by
compromising compliance with the
law, the safety of our people, or our
reputation as a responsible corporate
citizen and provider of news, sport
and entertainment. When setting the
appetite for taking and accepting
risk, the Group also considers the risk
posed by inaction in what is a fast-
paced and disrupted market.
The Group’s approach to risk
management is assessed at
least annually by the Audit & Risk
Committee of the Board in order to
make a recommendation to the full
Board on the appropriateness of
NZME’s Risk Management Framework
and Guidelines. The NZME Risk &
Compliance Manager (and going
forward reports to the Head of Risk,
Compliance and Financial Reporting)
reports to the NZME Risk Committee
and Audit & Risk Committee on
progress of the implementation of
the Risk Management Framework
and Guidelines.
5.2 Governance &
Remuneration Committee
The Governance & Remuneration
Committee ensures that remuneration
policies and practices are consistent
with the strategic goals of the Group
and are relevant to the achievement
of those goals. The Committee also
reviews the remuneration of the
CEO and remuneration packages
of executives reporting directly
to the CEO.

The Governance & Remuneration
Committee also makes
recommendations to the full Board
regarding the composition of the
Board, filling of vacancies, appointing
additional Directors to the Board,
and to review and adopt corporate
governance policies and practices
which reflect contemporary standards
in New Zealand, incorporating
principles and guidelines issued by
the Financial Markets Authority and
the NZX. For further information, also
refer to the Committee’s charter filed
on the Company’s website.
For the year ended 31 December
2016, all the Directors were members
of the Governance & Remuneration
Committee and it was chaired by
Peter Cullinane.
6. REPORTING,
DISCLOSURE AND
SECURITIES TRADING
The Board has policies and procedures
in place to keep investors and staff
informed of material information
about the Company and to ensure
compliance with the continuous
disclosure obligations under the
Financial Markets Conduct Act
2013 and the NZX Listing Rules.
The Board also has a Securities
Trading Policy setting out the details
of the Company’s trading policy
and guidelines and containing
certain restrictions on dealing in the
Company’s quoted financial products.
The requirements imposed by the
policy are separate from, and in
addition to, the legal prohibitions in the
Financial Markets Conduct Act 2013 on
insider trading.
7. DIVERSITY
The Group believes that a diverse
workforce is essential for it to be able
to deliver its strategic objectives and
continue to meet its responsibilities
to its customers, its employees, the
communities in which it works,
and its shareholders.

For the Group, diversity means
the competitive value in the
differences of its people in relation
to gender, race, ethnicity, sexual
orientation, age, disability, religion
or cultural background.
The Group’s full Diversity Policy is
available on it’s website. It is the Board’s
view that the Group is currently
operating in accordance with, and
applying the principles of, the policy.

The table below includes the
quantitative breakdown as to the
gender composition of NZME’s
Board and Officers
A
.
(A) The term ‘Officer’ is defined in the NZX Listing Rules as a person, however designated, who
is concerned or takes part in the management of the Issuer’s business, but excludes (i) a person
who does not report directly to the Board or (ii) a person who does not report directly to a person
who reports to the Board. NZME has interpreted this to mean the Chief Executive and any person
reporting to the Chief Executive or the Board directly. The numbers above therefore include the
CEO and other members of the Group Executive Team. (B) Prior to the Demerger from APN and
the listing of the Company (see note 6.1 of the Consolidated Financial Statements) the Company
was a subsidiary of the APN group with reporting lines to executives at the APN level. Given the
significance of the Internal Restructuring prior to the Demerger and that individuals currently
classified as Officers reported to other group entities rather than the Board, no comparative
information has been provided for Officers as at 31 December 2015.
Corporate Governance (continued)
5. BOARD COMMITTEES

The Board has two standing
Committees, the Audit & Risk
Committee and the Governance &
Remuneration Committee, to assist in
carrying out its responsibilities. Both
Committees operate under Board
approved charters. The Board may
establish other committees from time
to time to deal with specific projects
or matters relating to the Company’s
various activities.
5.1 Audit & Risk Committee
The Committee consist of at least
three non-executive directors, with
the majority being also independent
directors (one of whom must
have an accounting and financial
background). The functions of the
Committee are to:
• Review, consider and if necessary,
investigate any reports or findings
arising from any audit function
either internally or externally;
• Evaluate financial information
submitted to it, along with relevant
policies and procedures; and
• Assess the effectiveness of risk
management throughout
the Group.
The Committee is also responsible
for communicating and engaging
with the external auditors and
for oversight and review of the
risk management framework. For
further information, also refer to the
Committee’s charter filed on the
Company’s website.
For the year ended 31 December
2016, all the Directors were members
of the Audit & Risk Committee and it
was chaired by Carol Campbell.

5.1.1 Risk management
The Audit & Risk Committee is
responsible for the oversight and
If the proposed merger with Fairfax NZ is approved, two further Board
appointments will be made.

3031
Statutory Information
1. DIRECTORS’ REMUNERATION

Directors are remunerated in the form of directors’ fees as set out in the table below. As set out in the Explanatory
Memorandum for the Demerger of NZME by APN, the fees for Independent Directors are fixed as a total pool of
$900,000 per annum. The fees paid to each Director depends on the duties of the Director, including committee work.
Current fees per annum are as follow:
2. DIRECTORS’ INTEREST IN NZME SHARES
Ordinary shares held by Directors and parties associated with them are as follows:
Prior to the Demerger, Michael Boggs (now CEO) and Ciaran Davis (APN CEO) were directors of NZME Limited. They
resigned as directors on 24 June 2016. Ciaran Davis was remunerated by APN and did not receive any remuneration for
his services as a director of the Company. Michael Boggs did not receive remuneration for his services as a director of
NZME Limited, but received the following remuneration as an employee during the year:
All of the above mentioned shares were issued when the Company listed on 27 June 2016.
FEES ($)
Chairman of the NZME Board
150,000
Membership of the NZME Board
100,000
Chair of NZME Board Committees
20,000
Membership of NZME Board Committees
10,000
31 DEC 2016
NUMBER
Sir John Anderson
114,286
Carol Campbell
50,000
Peter Cullinane
68,286
Fees paid for the year ended 31 December 2016 (in $)
DATE
APPOINTED
A
CHAIRMAN
OF THE
BOARD
BOARD
MEMBER
COMMITTEE
CHAIR
COMMITTEE
MEMBER
TOTAL
B
Sir John Anderson
C
24 June 201675,000-10,000
85,000
Carol Campbell
D
24 June 2016-50,00010,0005,000
65,000
Peter Cullinane
E
24 June 2016-50,00010,0005,000
65,000
Total fees paid215,000
(A) Refer to Note 6.1 of the consolidated financial statements for further information regarding the Demerger of NZME from APN. Prior to the Demerger,
the Company was a wholly owned subsidiary of APN and no director received any remuneration from the Company for services as a director. (B) In
addition to the fees noted in the table above, Directors are also entitled to be reimbursed for all reasonable travel, accommodation, and other costs
incurred by them in connection with their attendance at NZME Board or shareholder meetings or otherwise in connection with NZME business. The fees
above exclude any such reimbursements. (C) Sir John Anderson is the Chairman of the NZME Board and a member of the Audit & Risk and Governance &
Remuneration Committees. (D) Carol Campbell is a member of the NZME Board, Chair of the Audit & Risk Committee and a member of the Governance
& Remuneration Committee. (E) Peter Cullinane is a member of the NZME Board, Chair of the Governance & Remuneration Committee and a member of
the Audit & Risk Committee.
(A) Salary includes normal basic salary and paid leave. (B) Bonus payments are those paid during the current accounting period and excludes any bonus
accrual not yet paid. (C) Benefits relate to company contributions for KiwiSaver.
SALARY
A
BONUS
B
BENEFITS
C
TOTAL
Michael Boggs701,488138,42525,197
865,111
DIRECTORCOMPANYPOSITION
Sir John Anderson
NPT Limited
Chairman
(resigned effective 17 March 2017)
Steel & Tube Holdings Limited
Chairman
(resigned effective 31 March 2017)
T&G Global LimitedDeputy Chairman
Commonwealth Bank of Australia
Director
(resigned effective 11 November 2016)
Peter Cullinane
APN News & Media Limited
Independent Director and Chairman
of the Remuneration Committee
Lewis Road CreameryChairman and Owner
WPP AUNZ Limited
Director
(resigned effective 16 December 2016)
Carol Campbell
The Business Advisory Group LtdDirector and Owner
NZ Post LimitedDirector
Kiwibank LimitedDirector
Kingfish LimitedDirector
Marlin Global LimitedDirector
Barramundi LimitedDirector
NPT LimitedDirector
T&G Global LimitedDirector
Ronald McDonald House CharitiesChair
3. INTERESTS REGISTER

The general disclosures of interests made by Directors of Company during the accounting period, pursuant to section
140(2) of the Companies Act 1993, are shown below.
The Interests Registers also includes, pursuant to section 140(1) of the Companies Act 1993, an entry for each director
regarding the approval of the directors’ remuneration at the 27 June 2016 Board meeting. It also contains an entry for Sir John
Anderson declaring an interest in the banking facility agreement between NZME Ltd and Commonwealth Bank of Australia
and ASB Bank Limited. Sir John was at the time a director of Commonwealth Bank of Australia and abstained from voting on
this matter.
Michael Boggs held 50,000 shares in the Company as 31 December 2016.

3233
Statutory Information (continued)
4. DIRECTORS OF SUBSIDIARY COMPANIES

As at 31 December 2016, Michael Boggs (CEO) and Sarah Judkins (Chief Strategy Officer) were directors of the
wholly owned subsidiaries listed in Note 6.3 of the consolidated financial statements, other than NZME Australia Pty
Limited. Michael Boggs (CEO) and Mark O’Sullivan (a professional director resident in Australia) were directors of
NZME Australia Pty Limited as at 31 December 2016. Sarah Judkins was also a director of Chinese New Zealand Herald
Limited, Restaurant Hub Limited, Eveve New Zealand Limited and Ratebroker Limited and a trustee of the Auckland
Arts Festival. Michael Boggs is also a trustee of the Herald Foundation. Other than Mark O’Sullivan who received
$4,693 for his services as a director of NZME Australia Pty Limited, they did not receive any fees or other benefit for
their services as directors to any of these companies. Michael Boggs and Sarah Judkins receive remuneration as
employees of the Company which are not related to their duties as directors of these companies. Ciaran Davis was
a director of the wholly owned subsidiaries listed in note 6.3 of the financial statements (other than NZME Finance
Limited) and ceased to hold office as a director of these companies on 24 June 2016. Jeffrey Howard was a director of
NZME Finance Limited and ceased to hold office on 24 June 2016.

5. SHAREHOLDER INFORMATION

5.1 Substantial shareholders

The following information is given pursuant to Sub-Part 5 of Part 5 of the Financial Markets Conduct Act 2013.
According to notices given to the Company, the substantial security holders in the Company are note below:
DATE OF
SUBSTANTIAL
SECURITY NOTICE
NUMBER OF
SHARES HELD
% OF SHARES
HELD
Morgan Stanley & Co International Plc14/11/1611,770,521 6.01
Forager Funds Management Pty Ltd14/11/1613,460,256 6.87
Allan Gray Australia Pty Ltd26/10/1623,395,418 11.94
UBS Group AG26/10/1610,160,574 5.18
Perpetual Limited and subsidiaries25/10/1619,088,528 9.74
Westpac Banking Corporation12/10/1611,024,388 5.62
The total number of ordinary shares issued by the Company as at 31 December 2016 was 196,011,282. The Company
did not have any other quoted voting products.
5.2 Top 20 shareholders
As at 28 February 2017
NUMBER OF
SHARES HELD
% OF SHARES
HELD
New Zealand Central Securities Depository Limited30,856,6331 5.74
J P Morgan Nominees Australia Limited28,059,43914.32
National Nominees Limited24,906,43512.71
HSBC Custody Nominees (Australia) Limited24,181,65912.34
Citicorp Nominees Pty Limited20,379,64210.4
UBS Nominees Pty Ltd10,516,9755.37
RBC Investor Services Australia Nominees Pty Ltd7,792,7453.98
Bnp Paribas Nominees Pty Ltd5,663,1112.89
Bond Street Custodians Limited2,769,4051.41
UBS Nominees Pty Ltd2,695,9361.38
HSBC Custody Nominees (Australia) Limited A/C 22,676,1411.37
Citicorp Nominees Pty Limited2,592,2431.32
Forsyth Barr Limited2,065,7061.05
Abn Amro Clearing Sydney Nominees Pty Ltd1,519,2310.78
Pax Pasha Pty Ltd1,411,8800.72
Aust Executor Trustees Ltd1,059,6340.54
Bnp Paribas Noms Pty Ltd715,0120.36
Richard Ewan Bromley Mews & Wee Khoon Mews554,0250.28
Warbont Nominees Pty Ltd448,7460.23
Leveraged Equities Finance Limited435,0000.22
5.3 Spread of quoted security holders
RANGE OF SECURITIES HELDNUMBER OF
INVESTORS
% OF TOTAL
INVESTORS
SHARES
HELD
% OF SHARES
ISSUED
1 to 1,0003,99467.0 91,118,6590.57
1,001 to 5,0001,23520.752,842,3341.45
5,001 to 10,0002914.892,159,0221.10
10,001 to 100,0003756.3011,189,9755.71
Above 100,000580.97178,701,29291.17
Total
5,953100196,011,282100
As at 31 December 2016
As at 28 February 2017

3435
Statutory Information (continued)
REMUNERATION AMOUNTEMPLOYEESREMUNERATION AMOUNTEMPLOYEES
$100,000 - $110,00090$290,001 - $300,0003
$110,001 - $120,00068$300,001 - $310,0002
$120,001 - $130,00063$310,001 - $320,0005
$130,001 - $140,00034$320,001 - $330,0004
$140,001 - $150,00022$330,001 - $340,0001
$150,001 - $160,00022$340,001 - $350,0002
$160,001 - $170,00020$370,001 - $380,0001
$170,001 - $180,00010$380,001 - $390,0002
$180,001 - $190,0005$390,001 - $400,0001
$190,001 - $200,00012$410,001 - $420,0001
$200,001 - $210,0008$430,001 - $440,0002
$210,001 - $220,0008$450,001 - $460,0001
$220,001 - $230,00013$480,001 - $490,0001
$230,001 - $240,0002$510,001 - $520,0002
$240,001 - $250,0004$530,001 - $540,0001
$250,001 - $260,0003$600,001 - $610,0001
$260,001 - $270,0006$860,001 - $870,0001
$270,001 - $280,0001$1,020,001 - $1,030,0001
$280,001 - $290,0003
Total number of employees that were paid remuneration of $100,000+426
6. EMPLOYEE REMUNERATION

The Group paid remuneration including benefits in excess of $100,000 to employees (other than directors) during the
year ended 31 December 2016. The salary banding for these employees are disclosed in the following table (bands with
zero number of employees have been excluded):
The remuneration above include all remuneration paid to permanent employees, including fixed remuneration,
employer KiwiSaver contributions, medical aid contributions, bonuses, commission, settlements and redundancies.

7. OTHER INFORMATION
7.1 Waivers from the NZX
The Company did not receive any waivers from any of the NZX Listing Rules during the year.

7.2 Donations
In accordance with section 211(1)(h) of the Companies Act 1993, NZME notes that the Group made donations
of $5,047 during the year ended 31 December 2016.

7.3 Credit rating
As at the date of this Annual Report, NZME did not have a credit rating.

7.4 Exercise of NZX disciplinary powers
For the year ended 31 December 2016, the NZX did not exercise any of its disciplinary powers under Rule 5.4.2
of the NZX Listing Rules in relation to the Company.

7.5 Auditors
Refer to note 2.2.4 of the consolidated financial statements for fees paid to the auditors, PricewaterhouseCoopers, for
the year ended 31 December 2016.

The Audit & Risk Committee Charter requires the Committee to assess the following:

• The independence of the auditor;
• The ability of the auditors to provide additional services which may be occasionally required;
• The competency and reputation of the auditors;
• The projected audit fees; and
• Review the appointment, performance and remuneration of external auditors.

The Audit & Risk Committee also monitors and approves any services provided by the auditors other than in their
statutory role and receives confirmation from the auditors as to their independence from the Company. The Audit &
Risk Committee in conjunction with management also monitors and approves any service provided by the auditors
other than in their statutory role. This is undertaken on a service by service basis and assesses whether the service
is permissible under Professional and Ethical Standard 1 ("PES 1") issued by the New Zealand Auditing and Assurance
Standards Board, ensuring that any potential threat to independence is identified and appropriate safeguards to
eliminate the threat or reduce the threat to an acceptable level are established. The Audit & Risk Committee receives
an annual confirmation from the auditor as to their independence from the Group. The auditor is also required to
provide the Audit & Risk Committee with a detailed analysis of fees relating to non-audit services provided during the
year, including a description of potential threats to their independence and the applicable safeguards implemented by
the auditor to either mitigate those threats or reduce them to an acceptable level as required by PES 1. The Audit & Risk
Committee takes the nature of the services provided, the quantum of the fee, the reason for the additional services
and whether the services are likely to be one-off or repetitive in nature into consideration when evaluating
and concluding on auditor independence.

For the year ended 31 December 2016, given the nature of the services provided and based on the Committee’s
continuous monitoring of auditor independence, the Audit & Risk Committee do not believe that the non-audit
services provided by the auditors compromised their objectivity and independence.

7.6 Direct director appointments under the Company Constitution
Rule 3.3.8 of the NZX Listing Rules allow a company to include in its Constitution a right for a product holder to appoint
a director to the Board under certain circumstances. As at 31 December 2016, none of the Directors were appointed
pursuant to Rule 3.3.8.

37
Proposed NZME /
Fairfax NZ Merger
PROCESS UPDATE
• The merger remains subject to regulatory
and shareholder approval.
• The New Zealand Commerce Commission (“NZCC”)
released a draft determination in November 2016. Its
preliminary view was to decline the application.
• A public hearing was held in December 2016 where
interested parties, including NZME and Fairfax NZ,
presented their arguments for or against the
merger to the NZCC.
• We subsequently announced that NZME and Fairfax NZ
Limited have received, and agreed to, requests from
the NZCC to extend the target date for the NZCC's
final decision on the proposed merger. The final
determination is now expected to be made by
2 May 2017.
NEXT STEPS
• In the event that the merger is approved by the NZCC
in May, NZME will seek to complete the transaction as
soon as practicable.
• In the event that the merger is declined by the NZCC,
the parties will consider their next steps (a decision by
the NZCC to not approve the merger can
be appealed).
(1) The final consideration is subject to pre and post merger completion adjustments as disclosed in the NZME market announcement dated 7 September 2016.
Cash consideration
$55.0m
Shares issued to Fairfax NZ
136.2m
Total shares on issue post Merger
332.2m
Fairfax NZ shareholding post Merger
41%
MERGER CONSIDERATION
1
36

3839
Non-GAAP Measures Explained
REVENUE RECONCILIATION
Print Revenue
The Statutory Result, including the segment note, as reported in the Consolidated Financial Statements for the year
ended 31 December 2016 is not reflective of the NZME business going forward, due to the impact of the demerger, tax
payments, and the inclusion of the previous ownership interest in the Australian Radio Network. In order to show what
the result would look like for NZME on a standalone basis, we have presented a number of non-GAAP measures which
are further explained and reconciled to the GAAP figures in this supplementary information. This presentation should
be read in conjunction with NZME’s Consolidated Financial Statements.
As disclosed in Note 2.4 of the Consolidated Financial Statements, the Group has one reportable segment, but
discloses revenue for three channels. The commentary included in this annual report discusses certain components
of revenue in further detail and also includes references to Trading Revenue and Pro-Forma Revenue. These items are
explained and reconciled to Revenue as disclosed in Note 2.4 below:
NZME PRINT REVENUE ($M)
FY16
FY15% CHANGE
Advertising Revenue
132.7
147.8(10%)
Circulation Revenue
8 6 .1
87.0(1%)
Other Revenue
18.9
18.81%
Total Pro forma Revenue
1
2 3 7.7
253.5(6%)
Magazines Revenue
2
-
5.9(100%)
Revenue from Divestments
3
2.6
5.4(51%)
Total Trading Revenue
1
240.4
264.8(9%)
Acquired & Non-Trading items
4
(1.2)
(2.8)(57%)
Print Revenue per Financial Statements
5
239.1
262.0(9%)
(1) Pro forma and Trading Revenue are non-GAAP measures that are reconciled in the table above. (2) Relates to the unprofitable Pacific Magazines
licensed business closed in September 2015. $5.3m of FY16 revenue was previously classified as circulation, and $0.6m as advertising revenue.
(3) Revenue from divestments relates to revenues received from the Wairarapa Times Age sold in June 2016 (FY16 $2.3m), and Whakatane News
sold in August 2016 (FY16 $0.3m). (4) See reconciliation on pages 40-41. (5) Agrees to Print Revenue in 2.4.2 of the consolidated financial statements.
Radio & Experiential Revenue
Digital & e-Commerce Revenue
NZME RADIO & EXPERIENTIAL REVENUE ($M)
FY16
FY15% CHANGE
Radio & Experiential Revenue
1
1 0 8.7
114.2(5%)
Other Revenue (incl. iHeart and Events)
6.2
6.03%
Total Trading Revenue
2
114.8
120.2(4%)
(1) Radio & Experiential Revenue includes agency, direct and experiential revenue streams. (2) Trading Revenue is a non-GAAP measure that is explained
and reconciled in this section of the Annual Report. There were no adjustments for Radio & Experiential revenue. This is therefore also the Radio &
Experiential revenue as disclosed in note 2.4.2 of the consolidated financial statements.
NZME DIGITAL & E-COMMERCE REVENUE ($M)
FY16
FY15% CHANGE
Digital Revenue38.230.724%
e-Commerce Revenue14.01 7.3(19%)
Total Trading Revenue
1
52.2
48.09%
(1) Trading Revenue is a non-GAAP measure that is explained and reconciled in this section of the Annual Report. There were no
adjustments for Radio and Experiential revenue. This is also the Digital and e-Commerce revenue as disclosed in note 2.4.2 of the
consolidated financial statements.

4041
NZME FY16 TRADING RECONCILIATION TO FINANCIAL STATEMENTS
(1) The NZME Trading Result comprises Trading Revenue, Trading Other Income, Trading Costs, Trading Earnings Before Interest, Tax, Depreciation and
Amortisation (Trading EBITDA) and Trading Earnings Before Interest and Tax (Trading EBIT) which are non-GAAP measures. The NZME Trading Result
for FY16 shows NZME on a standalone basis for the full year by including the Educational Media business for a full year (which is only included for the
second half of the year in the Consolidated Financial Statements as it was acquired as part of the demerger), and excluding exceptional items (separately
disclosed on page 43) and without adjusting for earnings from businesses divested during the year (Wairarapa Times Age and Whakatane News) which
are also included in the Consolidated Financial Statements. (2) Acquired and non-trading items include Revenue of $1.2 million and Costs of $0.8 million
relating to the Educational Media business, which is offset by Masthead Royalty charges of $12.2 million incurred in H1 and other overhead costs previously
paid for by other entities in the Group prior to the demerger. (3) Revenue of $406.1 million agrees to Total revenues from external customers excluding
revenue from shared service centre in Note 2.4.2 of the Consolidated Financial Statements. Other revenue of $4.1 million consists of dividend income,
rental income from sub-leases, revenue from shared service centre, interest income and gain on disposal of properties from the same note.
All other items agree to the Consolidated Income Statement.
$MNZME
TRADING
RESULT
1

NZME
RELATED
EXCEPTIONALS
ACQUIRED &
NON-TRADING
ITEMS
2
FINANCIAL
STATEMENTS
3
Revenue4 07.4-(1.2)406.1
Other Income2.41.30.44.1
Total Revenue & Other Income4 0 9.71.3(0.8)410.2
Costs( 3 37.8 )(13.0)(12.8)(363.6)
EBITDA71.9(11.6)(13.6)46.6
Depreciation and amortisation(23.8)--(23.8)
EBIT4 8 .1(11.6)(13.6)22.8
Net interest expense(9.3)
NPBT13.5
Ta x(64.0)
Profit from
discontinued operations
125.1
Statutory NPAT74 .5
NZME FY15 TRADING RECONCILIATION TO FINANCIAL STATEMENTS
$MNZME TRADING
RESULT
1

NZME RELATED
EXCEPTIONALS
ACQUIRED &
NON-TRADING
ITEMS
2
FINANCIAL
STATEMENTS
3
Revenue433.0-(2.8)430.2
Other Income0.50.40.61.5
Total Revenue & Other Income433.60.4(2.3)4 31.7
Costs(358.6)(15.5)(26.6)(400.7)
Adj. to FY15 for standalone costs(3.1)-3.1-
EBITDA71.8( 1 5.1 )( 2 5.7 )31.0
Depreciation and amortisation(23.7)--(23.7)
EBIT48.2( 1 5.1 )( 2 5.7 )7. 3
Net interest expense(18.8)
NPBT(11.5)
Ta x1.2
Profit from discontinued operations53.2
Statutory NPAT42.9
(1) The FY15 NZME segment result in the APN FY15 accounts was $74.9m, this has been adjusted in the Trading Result for $3.1m of standalone costs
incurred in H2 16 to provide a like for like comparison. The NZME Trading Result comprises Trading Revenue, Trading Other Income, Trading Costs,
Trading Earnings Before Interest, Tax, Depreciation and Amortisation (Trading EBITDA) and Trading Earnings Before Interest and Tax (Trading EBIT) which
are non-GAAP measures. The NZME Trading Result for FY15 shows NZME on a standalone basis for the full year by including the Educational Media
business for a full year (acquired as part of the demerger), and excluding exceptional items (separately disclosed on page 43) and without adjusting
for earnings for business closures during the year (Pacific Magazines) which are also included in the Consolidated Financial Statements. (2) Acquired
and non-trading items include Revenue of $2.8 million and Costs of $1.8 million relating to the Educational Media business, which is offset by Masthead
Royalty charges of $22.8 million incurred in H1 and other overhead costs previously paid for by other entities in the Group prior to the demerger.
(3) Revenue of $430.2 million agrees to Total revenues from external customers excluding revenue from shared service centre in Note 2.4.2 of the
Consolidated Financial Statements. Other revenue of $1.5 million consists of dividend income, rental income from sub-leases, interest income and
gain on disposal of properties from the same note. All other items agree to the Consolidated Income Statement.
Non-GAAP Measures Explained (continued)

4243
NZME FY16 & FY15 TRADING TO PRO FORMA RECONCILIATION
(1) The NZME Pro forma result comprises Pro forma Earnings Before Interest, Tax, Depreciation and Amortisation (Pro forma EBITDA), Pro forma Earnings
Before Interest and Tax (Pro forma EBIT), Pro forma Net Profit Before Tax (Pro forma EBIT) and Pro forma Net Profit After Tax (Pro forma NPAT) which are
non-GAAP measures. The NZME Pro forma Result for FY 16 shows what NZME would look like if only the continuing operations were included. It therefore
starts with the Trading Result (explained and reconciled on pages 40 and 41) and is further adjusted to exclude the divestments of Wairarapa Times Age
and Whakatane News from the FY16 result, and to include a full year equivalent of additional standalone costs (costs that NZME incurs as a standalone
listed entity that it did not have before the demerger). The FY15 Pro forma result is per the Explanatory Memorandum for the Demerger of NZME by
APN published on 11 May 2016. (2) Standalone costs yet to be incurred has been estimated based on the standalone costs disclosed in the Explanatory
Memorandum for the Demerger of NZME by APN published on 11 May 2016 and taking into consideration the actual standalone costs incurred during H2.
(3) Net interest expense has been calculated at NZME’s current interest rate payable of 3.8% p.a. (4) Tax payable has been calculated indicatively utilising
NZME’s current effective tax rate of 29%.
$M
FY16 PRO FORMA
RESULT
1
FY15 PRO FORMA
RESULT
1
Trading EBITDA
1
71.9
71.8
Standalone costs yet to be incurred
2
(4.3)
(4.3)
Trading EBITDA
1
after standalone costs6 7.6
67. 5
Earnings from divestments
(0.4)
-
Pro forma EBITDA 6 7. 2
67. 5
Depreciation and amortisation
(23.8)
(23.7)
Pro forma EBIT43.4
43.9
Interest expense
3
(4.2)
(5.5)
Pro forma NPBT39.2
38.4
Ta x
4
(11.4)
(10.7)
Pro forma NPAT2 7. 8
27. 5
Earnings per share (cps)14.2
14.0
Final dividend (cps)6.0
NZME FY16 & FY15 RELATED EXCEPTIONALS
NZME RELATED EXCEPTIONALS ($M)FY16 FY15
Redundancies
1
(6.0)( 7. 2 )
Costs in relation to one-off projects
2
(6.9)(5.3)
Business and property divestments
3
1.30.4
Asset write downs
4
-(3.0)
NZME Related Exceptionals(11.6)( 1 5.1 )
(1) Redundancy costs relate to ongoing restructuring and integration. (2) Costs in relation to one-off projects are largely due to the
proposed Fairfax merger and ongoing integration programmes. (3) In FY16 the profit on business divestments of $1.3m related to the
disposal of the Wairarapa and Whakatane Publishing businesses, offset by a minor loss on sale of property. (4) Asset write downs in
FY15 relate to co-location as part of the NZME Central integration.
Non-GAAP Measures Explained (continued)

45
Consolidated
Financial
Statements
for the year ended 31 December 2016
44

4647
Contents
* In an attempt to make these financial statements easier to read, the notes to the financial statements have been grouped into
seven sections; aimed at grouping items of a similar nature together. The Basis of Preparation section presents a summary of
material information and general accounting policies that are necessary to understand the basis on which these consolidated
financial statements have been prepared. Accounting policies specific to a particular note are included in that note and are
shaded for ease of reference. Key judgments and estimates relevant to a particular note are also included in the relevant
note, and are clearly marked as such. A summary of the key judgments and estimates are also included under the Basis of
Preparation section on pages 53-55.
CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2016

Directors’ Statement 47
Consolidated Income Statement 48
Consolidated Statement of Comprehensive Income 49
Consolidated Balance Sheet 50
Consolidated Statement of Changes in Equity 51
Consolidated Statement of Cash Flows 52
Notes to the Consolidated Financial Statements*
Basis of Preparation 53
Group Performance 56
Operating Assets and Liabilities 62
Capital Management 72
Taxation 84
Group Structure and Investments in Other Entities 88
Other Notes 97
Independent Auditors’ Report 100


The Directors are pleased to present
the consolidated financial statements
of NZME Limited (the”Company”) and its
subsidiaries (together the “Group”) for the
year ended 31 December 2016, incorporating
the consolidated financial statements and the
auditor’s report.
The Directors are responsible, on behalf of the
Company, for presenting these consolidated
financial statements in accordance with applicable
New Zealand legislation and generally acceptable
accounting practices in New Zealand in order to
present consolidated financial statements that present
fairly, in all material respects, the financial position of
the Group as at 31 December 2016 and the results of
the Group’s operations and cash flows for the year
then ended.
The consolidated financial statements for the Group as
presented on pages 46 to 99 are signed on behalf of
the Board of Directors, and are authorised for issue on
the date below.
For and on behalf of the Board of Directors
Sir John Anderson
Director
Carol Campbell
Director
Directors’ Statement
Date: 23 February 2017

4849
NOTE
2016
$’000
2015
$’000
CONTINUING OPERATIONS
Revenue2.1
407,856
430,198
Finance and other income 2.1
2,340
1,544
Total revenue and other income
2.1
410,196
431,742
Expenses from operations before finance costs, depreciation,
amortisation
2.2.1
(363,553)
(400,726)
Depreciation & amortisation2.2.2
(23,845)
(23,683)
Finance costs2.2.3
(9,300)
(18,808)
Profit / (loss) from continuing operations before income
tax expense
13,498
(11,475)
Income tax expense5.1
(64,050)
1,207
Profit / (loss) from continuing operations for the year(50,552)
(10,268)
DISCONTINUED OPERATIONS
Profit / (loss) after tax from discontinued operations6.1.1
125,095
53,165
Profit / (loss) for the year

74 ,5 4 3
42,897
PROFIT / (LOSS) FOR THE YEAR IS ATTRIBUTABLE TO:
Owners of the Company
60,618
24,735
Non-controlling interests
13,925
18,162
Profit / (loss) for the year

74 ,5 4 3
42,897
NOTE
CENTS
CENTS
Earnings per share from continuing operations
attributable to the ordinary shareholders of the company
Basic / diluted earnings per share2.3
(28.0)
(6.6)
Earnings per share from profit for the year (continuing
and discontinued operations) attributable to the ordinary
shareholders of the Company
Basic / diluted earnings per share2.3
30.9
12.6
The above Consolidated Income Statement should be read in conjunction with the accompanying notes.
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
NOTE
2016
$’000
2015
$’000
Profit for the year74 ,5 4 3
42,897
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations4.2
44,846
3,606
Items that will not be reclassified to profit or loss
Revaluation of freehold land and buildings4.2
-
356
Exchange and other differences applicable
to non-controlling interests
(14,683)
7,1 1 0
Other comprehensive income, net of tax30,163
11,072
Total comprehensive income104,706
53,969
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company
105,464
28,697
Non-controlling interests
(758)
25,272
104,706
53,969
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
OWNERS OF THE COMPANY:
Continuing operations
(10,038)
(8,951)
Discontinued operations
115,502
37,6 4 8
105,464
28,697

5051
Attributable to owners of the Company
GROUP
NOTESHARE
CAPITAL
$’000
RESERVES
$’000
RETAINED
EARNINGS
$’000
TOTAL
$’000
NON-CON-
TROLLING
INTERESTS
$’000
TOTAL
EQUITY
$’000
Balance at 1 January 2015
360,363(38,616)79,511
401,258
190,736
591,994
Profit for the year--24,735
24,735
18,162
42,897
Other comprehensive
income
-3,962-
3,962
7,1 1 0
11,072
Total comprehensive
income
-3,96224,735
28,697
25,272
53,969
Transfers within equity4.2-(338)338
-
-
-
Equity transactions with
non-controlling interests
---
-
(14,139)
(14,139)
Balance at
31 December 2015
360,363(34,992)104,584
429,955
201,869
631,824
Balance at 1 January 2016
360,363(34,992)104,584
429,955
201,869
631,824
Profit for the year--60,618
60,618
13,925
74 ,5 4 3
Other comprehensive
income
-44,846-
44,846
(14,683)
30,163
Total comprehensive
income
-44,84660,618
105,464
(758)
1 04,70 5
Transfer from asset
revaluation reserve
4.2-(464)464
-
-
-
Transfer from transaction
with non-controlling
interest reserve
4.2-(14,732)14,732
-
-
-
Dividends paid4.4--(198,118)
(198,118)
-
(198,118)
Transactions with
non-controlling interests
---
-
(3,630)
(3,630)
Share based payments
expense
4.2-144-
144
-
144
Acquisitions and
divestments of subsidiaries
and operations
6--(51,886)
(51,886)
(197,481)
(249,367 )
Balance at
31 December 2016
360,363(5,198)(69,606)
285,559
-
285,559
NOTE
2016
$’000
2015
$’000
CURRENT ASSETS
Cash and cash equivalents4.7
16,242
11,065
Trade and other receivables3.3
53,631
409,870
Inventories
2,226
2,956
Tax receivable
-
770
Total current assets72,099
424,661
NON-CURRENT ASSETS
Intangible assets3.1
329,776
597,100
Property, plant and equipment3.2
75,677
99,216
Other financial assets6.4.3
5,988
128,386
Deferred tax assets5.2
-
46,065
Total non-current assets411,441
870,767
Total assets483,540
1,295,428
CURRENT LIABILITIES
Trade and other payables3.4
66,379
426,197
Interest bearing liabilities4.5
-
1,257
Current tax provision
2,800
1,620
Total current liabilities6 9,1 7 9
4 29,074
NON-CURRENT LIABILITIES
Trade and other payables3.4
13,423
13,934
Interest bearing liabilities4.5
112,168
184,500
Deferred tax liabilities5.2
3,211
36,096
Total non-current liabilities128,802
234,530
Total liabilities197,981
663,604
Net assets285,559
631,824
EQUITY
Share capital4.1
360,363
360,363
Reserves4.2
(5,198)
(34,992)
Retained earnings
(69,606)
104,584
Total Company interest285,559
429,955
Non-controlling interests-
201,869
Total equity285,559
631,824
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.
CONSOLIDATED BALANCE SHEET
as at 31 December 2016
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2016

5253
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
NOTE
2016
$’000
2015
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
581,485
742,182
Payments to suppliers and employees
(488,558)
(609,375)
Dividends received
141
4,031
Interest received
223
277
Interest paid
(8,811)
(10,838)
Income taxes paid
(22,798)
(5,359)
Net cash inflows / (outflows) from operating activities
4.7
61,682
120,918
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(11,549)
(27,008)
Payments for intangible assets including software
(4,407)
(9,622)
Acquisition of controlled entities, net of cash acquired6.2
-
(82,871)
Proceeds from sale of property, plant and equipment
2,251
868
Proceeds from divestment of subsidiaries, net of their cash,
as part of internal restructure
6.1.3
95,936
-
Payments for investment in other entities
(848)
-
Net loans repaid / (advanced) to other entities
2,278
480
Net cash inflows / (outflows) from investing activities83,661
(118,153)
CASH FLOWS FROM FINANCING ACTIVITIES
Loans advanced / (repaid) by related parties
(55,958)
45,752
Proceeds from borrowings
54,000
42,000
Repayments of borrowings
(127,242)
(79,222)
Payments for borrowing cost
(400)
-
Dividends paid to Company’s shareholders
(6,860)
-
Net payments to non-controlling interests
(3,630)
(16,671)
Net cash inflows / (outflows) from financing activities(140,090)
(8,141)
Net increase / (decrease) in cash and cash equivalents5,253
(5,376)
Cash and cash equivalents at beginning of the year
11,065
16,367
Effect of exchange rate changes
(76)
74
Cash and cash equivalents at end of the year
4.7
16,242
11,065
The Consolidated Statement of Cash Flows includes cashflows from continuing and discontinued operations. Refer to
Note 6.1.3 for further information on cash flows from discontinued operations. The above Consolidated Statement of
Cash Flows should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.1 REPORTING ENTITY AND STATUTORY BASE
NZME Limited (NZX:NZM, ASX:NZM), formerly “Wilson
& Horton Limited”, is a for-profit company limited by
ordinary shares which are publicly traded on the NZX
Main Board and the Australian Securities Exchange as a
Foreign Exempt Listing. NZME Limited is incorporated
and domiciled in New Zealand. It is registered under the
Companies Act 1993 and is a FMC reporting entity under
Part 7 of the Financial Markets Conduct Act 2013. The
entity’s registered office is 2 Graham Street, Auckland,
1010, New Zealand.
NZME Limited (the “Company” or “Parent”) and
its subsidiaries’ (together the “Group”) principal
activity during the financial year was the operation
of an integrated print, radio and digital media and
entertainment business.

1.2 GENERAL ACCOUNTING POLICIES
These consolidated financial statements have been
prepared in accordance with New Zealand Generally
Accepted Accounting Practice (“NZ GAAP”). They comply
with New Zealand equivalents to International Financial
Reporting Standards (“NZ IFRS”) and other applicable
Financial Reporting Standards, as appropriate for for-
profit entities. The consolidated financial statements also
comply with International Financial Reporting Standards
(“IFRS”). The consolidated financial statements have also
been prepared in accordance with Part 7 of the Financial
Markets Conduct Act 2013 and the NZX Listing Rules.

The principal accounting policies adopted in the
preparation of the financial statements are either set out
below, or in the note to which it relates. These policies
have been consistently applied to all the years presented,
unless otherwise stated. These consolidated financial
statements are presented for the Group.

These consolidated financial statements were approved
for issue by the Board of Directors on 23 February 2017.

1.2.1 Basis of measurement
These financial statements have been prepared under the
historical cost convention with the exception of certain
items for which specific accounting policies
are identified.

1.2.2 Comparatives
Certain prior period information has been re-presented
consistent with current year disclosures to provide more
meaningful comparison. The comparatives for the current
period have been re-presented for the effects of the
application of NZ IFRS 5
Non-current Assets Held for
Sale and Discontinued Operations
following the disposal
of the Group’s interest in the Australian Radio Network
(including Brisbane FM Radio Pty Ltd, Radio Perth
96FM Pty Limited and Emotive Pty Limited), The Level
3 Partnership and The Level 4 Partnership (“Disposed
Entities”). Refer to note 6.1 “Demerger from APN”. The
nature of the re-presentation is as follows:
• All income and expense items relating to the Disposed
Entities have been removed from the individual line
items in the income statement. The post-tax profit/
(loss) of the Disposed Entities is presented as a single
amount in the line item entitled “Profit/(loss)
from discontinued operations”; and

•  The net cash flows attributable to the operating,
investing and financing activities of the Disposed
Entities are each disclosed in the notes to the
financial statements.

1.2.3 Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of
the Group’s entities are measured using the currency of
the primary economic environment in which the entity
operates (functional currency). The consolidated financial
statements are presented in New Zealand dollars, which
is the Company’s functional and the Group’s presentation
currency, and rounded to the nearest thousand,
except where otherwise stated.

Transactions and balances
Foreign currency transactions are translated into the
functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of
such transactions and from the translation at the year-
end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
the income statement, except when deferred in other
comprehensive income as qualifying cash flow hedges
and qualifying net investment hedges. Non-monetary
items that are measured at fair value in a foreign currency
are translated using the exchange rates at the date when
the fair value was determined. Translation differences on
assets and liabilities carried at fair value are reported as
part of the fair value gain or loss. Non-monetary items
that are measured in terms of historical cost in a foreign
currency are translated using the exchange rate
at the date of the transaction.
1.0 BASIS OF PREPARATION

5455
Group companies
The result and financial position of all the Group entities
that have a functional currency different from the
presentation currency are translated into the
presentation currency as follows:
• Assets and liabilities are translated at the closing rate
at the date of the balance sheet;
• Income and expenses are translated at average
exchange rates; and
• All resulting exchange differences are recognised
as a separate component of equity.

On consolidation, exchange differences arising from
the translation of any net investment in foreign entities,
and of borrowings and other currency instruments
designated as hedges of such investments are taken
to equity. When a foreign operation is sold or a
partial disposal occurs, a proportionate share of such
exchange differences is recognised in the income
statement as part of the gain or loss on disposal.

Goodwill and fair value adjustments arising on the
acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the
closing rate.

1.2.4 Goods and Services Tax (‘GST’)
The income statement has been prepared so that all
components are stated exclusive of GST. All items in
the balance sheet are stated net of GST, with exception
of receivables and payables, which include GST
invoiced. On the statements of cash flows receipts
from customers and payments to suppliers are shown
inclusive of GST.
1.3 SIGNIFICANT ACCOUNTING ESTIMATES
AND JUDGEMENTS
The preparation of the consolidated financial statements
requires the use of certain significant judgements,
accounting estimates and assumptions, including
judgements, estimates and assumptions concerning
the future. The estimates and assumptions are based
on historical experiences and other factors that are
considered to be relevant. The resulting accounting
estimates will by definition, seldom equal the related
actual results and are reviewed on an ongoing basis.
The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying
amounts of the assets and liabilities within the next
financial year are discussed in further detail in the
notes to the consolidated financial statements to which
they relate. A list of those areas of significant estimation
or judgement and a reference to the notes containing
further information is provided below:

Areas of significant accounting
estimates or judgements NOTE
Impact of Performance Rights on earnings 2.3
per share
Determination of number of segments 2.4
Intangible assets with indefinite useful lives 3.1
Assumptions used in testing for impairment 3.1.1
of indefinite life intangible assets
Controlled entities 6.3

1.4 SIGNIFICANT CHANGES IN THE CURRENT
REPORTING PERIOD

1.4.1 Demerger from APN News & Media Limited
The Company completed its demerger from APN News
& Media Limited (“APN”) on 29 June 2016, marking the
creation of a standalone NZ Group focused on the
operation of an integrated print, radio and digital
media and entertainment business.
NZME shares were distributed to eligible APN
shareholders at a ratio of one NZME share for every
one APN share. Refer to note 6.1 and NZME NZX
announcements on 27 June 2016 and 29 June 2016 for
further details.

1.4.2 Proposed Merger with Fairfax New Zealand
Limited
As noted in the combined NZME Limited and Fairfax
Media Limited announcement dated 22 August 2016,
Fairfax New Zealand Limited (“Fairfax NZ”) and NZME
Limited received and agreed to a request from the New
Zealand Commerce Commission (“NZCC”) to extend the
date for the NZCC’s decision on the proposed merger of
the two businesses until 15 March 2017.

On 7 September 2016 NZME Limited and Fairfax NZ
announced the signing of a merger implementation
agreement to effect the merger of NZME Limited and
Fairfax NZ.

Overseas Investment Office (“OIO”) consent to the
merger was obtained on 22 September 2016.

On 8 November 2016 the NZCC issued a Draft
Determination setting out its preliminary view that,
based on the information received as at that date, it
should decline the proposed merger between NZME
and Fairfax NZ. The purpose of the Draft Determination
is to elicit further submissions and evidence to assist
the NZCC in making a Final Determination.
On 28 November 2016 NZME announced that it had
filed a joint submission with Fairfax NZ to the NZCC in
response to the issues raised in the Draft Determination.
The NZCC held a conference on 6 & 7 December 2016
to consider matters relating to the merger to assist the
NZCC in making a Final Determination on the merger.
The NZCC is due to make a Final Determination on the
proposed merger on or before 15 March 2017.

1.4.3 Taxation
On 23 June 2016, the Company and APN reached a
binding heads of agreement with the Inland Revenue
Department (“IRD”) to settle the Mandatory Convertible
Note transaction, the Branch financing transaction,
non-resident withholding tax and thin capitalisation
issues, and a further matter that was under review by
the IRD. Refer to note 5.3 for further details.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5657
2016
$’000
2015
$’000
FROM CONTINUING OPERATIONS
Employee benefits expense
161,610
164,621
Production and distribution expense
82,301
99,394
Selling and marketing expense
45,840
50,220
Rental and occupancy expense
2 3,7 11
23,785
Masthead license fees
12,216
22,853
Costs in relation to one-off projects
6,946
5,312
Redundancies and associated costs
6,009
7,1 78
Asset write-downs and business closures
-
3,028
Repairs and maintenance costs
6 ,1 6 6
5,771
Travel and entertainment costs
4,086
3,892
Other
14,668
14,672
Total expenses from operations before finance costs,
depreciation, amortisation
363,553
400,726
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2016
$’000
2015
$’000
FROM CONTINUING OPERATIONS
Advertising revenue
295,141
314,655
Circulation and subscription revenue
86,782
93,582
Services revenue
12,206
11,826
Other revenue
1 3,72 7
10,135
Revenue from continuing operations 407,856
430,198
Dividends
141
267
Rental income from sub-leases
586
521
Profit / (loss) on disposal of properties and businesses
1,320
441
Other income2,047
1,229
Interest income – related parties
91
-
Interest income – other entities
202
315
Finance income293
315
Total finance and other income 2,340
1,544
Total revenue and other income 410,196
431,742
FROM DISCONTINUED OPERATIONS (REFER TO NOTE 6.1.1)
Total revenue and other income127,542
252,019
2.1 REVENUE AND OTHER INCOME2.2 EXPENSES
2.2.1 Expenses from operations before finance costs, depreciation, amortisation
Accounting policies
Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue are
net of returns, rebates and taxes paid.
The Group recognises revenue when:
· the amount of revenue can be reliably measured;
· it is probable that the economic benefits will flow to the Group; and
· the criteria for revenue recognition has been satisfied.
Advertising revenue is recognised when the advertisement is published or broadcast, when the coupon is sold,
or over the period the advertisement is displayed.
Circulation and subscription revenue is recognised when the publication is purchased or on a straight-line basis
over the subscription period.

Services revenue is recognised by reference to the stage of completion of the transaction, when it can be
measured reliably. Services revenue includes printing and production and revenue generated by the shared
services centre.

Other revenue includes revenue from events, recycling of waste, distribution charges and digital design
and is recognised when the event occurs, the product is delivered or the goods are sold.

2.0 GROUP PERFORMANCE
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2016
$’000
2015
$’000
2.2.2 Depreciation & amortisation
FROM CONTINUING OPERATIONS
Depreciation
16,173
14,023
Amortisation
7,6 7 2
9,660
Total depreciation & amortisation23,845
23,683
2.2.3 Finance cost
FROM CONTINUING OPERATIONS
Interest and finance charges – related parties
2 ,76 5
6,305
Interest and finance charges – other entities
6,482
12,503
Borrowing cost amortisation
53
-
Total finance cost9,300
18,808

5859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.3 EARNINGS PER SHARE
2016
$’000
2015
$’000
2.2.4 Fees paid to auditors
Fees paid to the Group’s auditors, PricewaterhouseCoopers, consist of:
Audit or review of financial statements
A
454
379
Other services
Other assurance services
B
6
64
Tax services
C
1,057
750
Other services
D
1,231
93
Total other services2,294
907
Total fees paid to auditors2 ,74 8
1,286
(A) Includes the fee for both the audit of the annual financial statements and the independent review of the interim financial statements. (B) Includes
regulatory and other assurance services, including New Zealand circulations. (C) Includes services relating to transactional advice, tax compliance
services, tax pooling services and services relating to the IRD settlement (refer to note 5.3). (D) Includes due diligence and advisory services relating
to the proposed merger with Fairfax New Zealand Limited of $1,224,179 in 2016 and other advisory services.
(A) Due to the share consolidation in the current period (refer to note 4.1), the number of ordinary shares outstanding during the year ended
31 December 2015 was retrospectively adjusted.

2016
$’000
2015
$’000
RECONCILIATION OF EARNINGS USED IN CALCULATING BASIC / DILUTED
EARNINGS PER SHARE (“EPS”)
Profit / (Loss) from continuing operations attributable to owners of the parent entity
(54,884)
(12,913)
Profit from discontinuing operations attributable to owners of the parent entity
115,502
37,6 4 8
Profit / (Loss) attributable to owners of the parent entity used in calculating EPS60,618
24,735
2016
NUMBER
2015
NUMBER
WEIGHTED AVERAGE NUMBER OF SHARES
Weighted average number of shares in the denominator in calculating basic EPS
A
196,011,282
196,011,282
Adjusted for calculation of diluted EPS
-
-
Weighted average number of shares in the denominator in calculating diluted EPS 196,011,282
196,011,282
2016
CENTS
2015
CENTS
BASIC / DILUTED EARNINGS PER SHARE
From continuing operations attributable to owners of the parent entity
(28.0)
(6.6)
From discontinuing operations attributable to owners of the parent entity
58.9
19.2
Total basic / diluted earnings per share attributable to owners of the parent entity30.9
12.6
Significant Judgement
Under the Group’s Total Incentive Plan (“TIP”) as discussed in Note 4.3, Performance Rights were issued to certain
participating employees that will convert into fully paid ordinary shares. Under the TIP, the Company would either
repurchase those shares from the market or issue new shares. Any new shares issued would have a dilutive effect
on the Earnings Per Share calculations noted below. It is currently the intention of the Company to repurchase
shares from the market and not to issue new shares.

6061
2.4.2 Segment revenues and results
The segment information provided to the Directors and Executive Team for the year ended 31 December 2016
is as follows:
2016
$’000
2015
$’000
REVENUES FROM EXTERNAL CUSTOMERS BY CHANNEL
Print
239,127
262,006
Radio & Experiential
114,849
120,173
Digital & e-Commerce
52,153
48,019
Total revenues from external customers excluding revenue
from shared service centre
406,129
430,198
Dividend income
141
267
Rental income from sub-leases
586
521
Expenses from operations before finance costs, depreciation,
amortisation and exceptional items
(338,382)
(362,355)
Total Segment Adjusted EBITDA
A
68,474
68,631
Revenue from shared services centre
1,72 7
-
Depreciation and amortisation
(23,845)
(23,683)
Interest income
293
315
Finance cost
(9,300)
(18,808)
EXCEPTIONAL ITEMS
Gain on disposal of properties and businesses
B
1,320
441
Masthead royalty charges
C
(12,216)
(22,853)
Redundancies and associated costs
D
(6,009)
( 7,1 78 )
Costs in relation to one off projects
E
(6,946)
(5,312)
Asset write downs
F
-
(3,028)
Profit / (Loss) before tax from continuing operations13,498
(11,475)
(A) Adjusted Earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) from continuing operations and before exceptional items,
is a non-GAAP measure that represents the Group’s total segment result and is regularly monitored by the Chief Operating Decision Maker. (B) Gains on
disposal of properties is the gain on sale of the Wairarapa Times Age, Whakatane News offset by loss on sale of property in Nelson in 2016, and the gain
on sale of a property in Invercargill, New Zealand in 2015. (C) Costs charged from a subsidiary company of APN for use of NZ publishing mastheads. On
24 June 2016, the Group acquired certain NZ publishing mastheads on normal commercial terms from this subsidiary company of APN (refer to note
3.1). As a result, masthead royalty charges have not been incurred by the Group from 24 June 2016 onwards. (D) The redundancies and associated costs
relate to the restructuring and integration of the New Zealand operations. (E) The costs related to one off projects refers primarily to costs of external
consultants assisting with the listing, integration and co-location of NZME and the proposed merger with Fairfax New Zealand. (F) The asset write downs
includes a write off of leasehold improvements in the Group as a result of the office co-location.

As the Group has one operating segment, the assets and liabilities as reported on the consolidated balance sheet are
also the segment assets and liabilities, and the income tax expense in the consolidated income statement is also the
segment income tax.
Significant Judgement
The Group has one reportable segment – being “Integrated Media and Entertainment”. All significant operating
decisions are based upon analysis of NZME as one operating segment. The Executive Team and the Board of
Directors have been identified as the Chief Operating Decision Maker. The Group’s major products and services
are split by channel only at the revenue level into Print, Radio & Experiential and Digital & e-Commerce which
is the way in which revenue is reported to the Chief Operating Decision Maker. Although the Group operates
in many different markets within New Zealand, for management reporting purposes the Group operates in one
principle geographical area being New Zealand as a whole.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.4 SEGMENT INFORMATION
2.4.1 Determination and description of segments
Following the demerger and internal restructure which resulted in the Company being listed as a separate standalone
entity, the segmental reporting was revised to align to the format that is used to report to the Chief Operating Decision
Maker. The corresponding information for 2015 has been re-presented.
Accounting policies
Basic earnings per share (from continuing operations)
Basic earnings per share is determined by dividing:
· the profit or loss attributable to owners of the Company; by
· the weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share (from continuing operations)
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share by taking
into account:
· the after-tax effect of dividends, interest and other changes in income or expense associated with
dilutive potential ordinary shares; and
· the weighted average number of additional ordinary shares that would have been outstanding assuming
the conversion of all dilutive potential ordinary shares.
(Note that there are no dilutive potential ordinary shares in 2016 (2015: nil)).
Basic / dilutive earnings per share (from discontinued operations)
Basic / dilutive earnings per share (from discontinued operations) are calculated on the same basis as the
policies described above, except that net profit or loss attributable to the owners of the Company is replaced
with profit or loss from discontinued operations attributable to the owners of the Company.
Integrated Media and Entertainment incorporates the sale of advertising, goods and services generated from the
audiences attached to the Group’s media platforms. Discontinued operations have been presented in Note 6.1.

6263
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.1 INTANGIBLE ASSETS
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
AT 1 JANUARY 2015
Cost165,84837,14 015,830401,44759,079
679,344
Accumulated amortisation
and impairment
(95,614)(28,609)(15,830)(30,245)-
(170,298)
Net book value
70,2348,531-371,20259,079
509,046
FOR THE YEAR ENDED 31 DECEMBER 2015
Opening net book amount70,2348,531-371,20259,079
509,046
Additions-9,622---
9,622
Disposals-(189)---
(189)
Acquisition of controlled entities11,237--72,408-
83,645
Amortisation-(6,707)-(3,889)-
(10,596)
Foreign exchange differences(79)14-5,637-
5,572
Net book value
81,39211,271-445,35859,079
597,100
AS AT 31 DECEMBER 2015
Cost177,00646,587-479,49259,079
762,164
Accumulated amortisation
and impairment
(95,614)(35,316)-(34,134)-
(165,064)
Net book value
81,39211,271-445,35859,079
597,100
(A) Prior to the implementation of the demerger, the Group acquired certain NZ publishing Masthead Brands on normal commercial terms from a
subsidiary company of APN News & Media Limited (“APN”). These Masthead Brands were purchased for consideration of $146,976,000 together with
a termination amount in regard to the masthead license of $2,065,575, which was incurred as the Group early terminated the masthead licences
agreement with APN. (B) The Company completed its demerger from APN on 29 June 2016. Refer to Note 6.1 for further details around assets
disposed and acquired as part of the Internal Restructure.
Significant Judgement
The Directors have determined that Masthead Brands and Brands have indefinite lives and are therefore not
amortised. Refer to the accounting policies below for further information.
Accounting policies
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets of the acquired business at the date of the acquisition. Goodwill is not amortised but rather is
subject to periodic impairment testing.
Software
Costs incurred in developing systems, acquiring software and licences are capitalised to software. Costs
capitalised include materials, services, payroll and payroll related costs of employees involved in development.
Amortisation is calculated on a straight line basis over the useful life of the asset (typically 3 to 10 years).
Radio licences
Commercial radio licences are accounted for as identifiable assets and are brought to account at cost. The
current New Zealand radio licences have been renewed to 31 March 2031 and are being amortised on a straight
line basis to that date.
Masthead Brands
Masthead Brands, being the titles, logo’s and similar items of the integrated media assets of the Group are
accounted for as identifiable assets and are brought to account at cost. The Directors believe the mastheads
have indefinite lives as there is no foreseeable limit over which the mastheads are expected to generate net
cash inflows for the Group. Accordingly, Masthead Brands are not amortised but are tested for impairment each
year (refer to note 3.1.1 below).
3.0 OPERATING ASSETS & LIABILITIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
FOR THE YEAR ENDED 31 DECEMBER 2016
Opening net book amount81,39211,271-445,35859,079
597,100
Additions
A
-4,286146,976--
151,262
Disposals-----
-
Divestment of subsidiaries
and operations
B
(10,804)--(390,454)-
(401,258)
Acquisition of controlled entities-----
-
Amortisation-(4,721)-(3,422)-
(8,143)
Foreign exchange differences19534-(9,414)-
(9,185)
Net book value
70,78310,870146,97642,06859,079
329,776
AS AT 31 DECEMBER 2016
Cost166,39749,309146,9767 7,4 5759,079
499,218
Accumulated amortisation
and impairment
(95,614)(38,439)-(35,389)-
(169,442)
Net book value
70,78310,870146,97642,06859,079
329,776

6465
Significant Judgement
As disclosed in note 2.4 the Directors have determined that, following the demerger and internal restructure,
the Group has one reportable segment – being “Integrated Media and Entertainment”. The Directors have also
determined that this is the only cash generating unit (“CGU”) for impairment testing because this is the lowest
level for which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets. Accordingly all goodwill and intangibles with indefinite useful lives are
allocated to one CGU. This note also includes details of certain key estimates and assumptions made during the
impairment testing calculations.
Key estimates and assumptions
Year 1 cash flows:
Based on Board approved annual budget.

Years 2 to 5 cash flows
Revenue forecasts are prepared based on management’s current expectations, with consideration given to
internal information and relevant external industry data and analysis. In particular:
· Print revenues are forecast to decline in line with recent experience and industry trends.
· Digital revenues are forecast to grow based on recent experience and industry trends.
· Radio and experiential revenues are forecast to grow based on management expectations of
performance as a result of investment in key initiatives.

Expenses are forecast based on management expectations, with consideration given to internal information
and relevant external data.
A comprehensive impairment review was conducted at 31 December 2016. The recoverable amount of the CGU
(which includes goodwill and indefinite life intangible assets) is determined based on the higher of fair value less costs
to sell and value in use calculations using management budgets and forecasts. The recoverable amount of the CGU
is compared against the carrying value of the CGU to determine whether there has been an impairment.
(A) Prior to the Demerger from APN, the Group undertook impairment testing for four CGU’s. The post-tax discount rate used in those calculations ranged
from 10% to 10.5%. (B) Prior to the Demerger from APN, the Group undertook impairment testing for four CGU’s. The long-term growth rate used in those
calculations ranged from 0% to 2.5%.
2016
Post-tax
discount rate
2016
Long-term
growth rate
2015
Post-tax
discount rate
2015
Long-term
growth rate
Integrated Media and Entertainment CGU
9.5%0%
AB
3.1.2 Impact of reasonably possible change
in key assumptions
The forecasts are sensitive to certain key assumptions,
particularly forecast print and digital revenues. If the
ratio of the growth in digital revenue as compared to the
decline in print revenue reduced by 8% over the period
of forecast, and no other mitigation activities were
taken into account, then the recoverable amount would
be equal to the carrying amount of the CGU and any
further fall in this ratio would result in impairment.
Based on all available information the Directors do
not consider this to be a reasonably possible scenario.
Accordingly, based on the assessment performed,
there is no impairment.
3.1.1 Year-end impairment reviewAccounting policies
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment and whenever there is an indication that they may be impaired. Intangible assets that
are subject to amortisation are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may exceed its recoverable amount. An impairment charge is recognised for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash-generating units). Currently, the
group has only one CGU, being Integrated Media and Entertainment. Non-financial intangible assets, other than
goodwill, that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies (continued)
Brands
Brands are accounted for as identifiable assets and are brought to account at cost. The Directors have
considered the geographic location, legal, technical and other commercial factors likely to impact the assets’
useful lives and consider that they have indefinite lives. Accordingly, Brands are not amortised but are tested for
impairment each year (refer to note 3.1.1 below).

6667
FREEHOLD
LAND
B
$’000
BUILDINGS
B
$’000
PLANT AND
EQUIPMENT
C
$’000
TOTAL
$’000
AT 1 JANUARY 2015
Cost or fair value3,1051,514398,812
403,431
Accumulated depreciation and impairment-(357)(311,571)
(311,928)
Net book amount
3,1051,15787, 24 1
91,503
YEAR ENDED 31 DECEMBER 2015
Opening net book amount3,1051,15787, 24 1
91,503
Additions-3127,3 9 9
27,430
Acquisitions of controlled entity--426
426
Disposals(341)(771)(2,365)
(3,477)
Depreciation-(290)(17,308)
(17,598)
Revaluations224375-
599
Foreign exchange differences2(22)353
333
Net book amount
2,9904809 5,746
99,216
AS AT 31 DECEMBER 2015
Cost or fair value2,990480404,483
407,953
Accumulated depreciation and impairment--(308,737)
(308,737)
Net book amount
2,9904809 5,746
99,216
YEAR ENDED 31 DECEMBER 2016
Opening net book amount2,9904809 5,746
99,216
Additions-1,57610,160
11,73 6
Disposals(752)(98)(172)
(1,022)
Divestment of subsidiaries and operations
A
(1,133)(714)(14,928)
(16,775)
Depreciation-(2,217)(15,832)
(18,049)
Transfers and other adjustments
C
30213,335(12,701)
936
Foreign exchange differences(26)(17)(322)
(365)
Net book amount
1,38112,34561,951
75,677
AS AT 31 DECEMBER 2016
Cost or fair value1,38114,562386,520
402,463
Accumulated depreciation and impairment-(2,217)(324,569)
(326,786)
Net book amount
1,38112,34561,951
75,677
3.2 PROPERTY, PLANT AND EQUIPMENT
(Footnotes on the next page)
Accounting policies
Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate
their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:
Furniture and fittings 3 to 25 years
Buildings 10 to 25
Leasehold improvements 3 to 25 years
Motor vehicles 5 to 10 years
Plant & equipment 3 to 25 years
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet
date. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are
included in the income statement.
Land and buildings are shown at fair value, based on periodic valuations (at least every 3 years) by external
independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of
revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the
revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings
are credited to revaluation reserves in equity. To the extent that the increase reverses a decrease previously
recognised in the income statement, the increase is first recognised in the income statement. Decreases that
reverse previous increases of the same asset are first charged against the revaluation reserves directly in equity
to the extent of the remaining reserve attributable to the asset. All other decreases are charged to the
income statement.
Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items. Subsequent costs are included in the assets carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the item can be reliably measured.
All other repairs and maintenance are charged to the income statement during the financial period in which
they are incurred.
Impairment of assets
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount. Assets that are subject to depreciation are tested
for impairment whenever changes in circumstances indicate that the asset’s carrying amount may exceed its
recoverable amount. An impairment charge is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. Assets that suffer an impairment are reviewed for possible reversal of the
impairment at each reporting date.
(A) The Company completed its demerger from APN News & Media Limited (APN) on 29 June 2016. Refer to Note 6.1 for further details around assets
disposed and acquired as part of the Internal Restructure. (B) Freehold land and buildings are held at fair value based on independent valuations. If land
and buildings were stated on the historical cost basis, the net book value of land would have been $658,270 (2015: $939,270) and the net book value of
buildings would have been $688,435 (2015: $1,039,690). The last revaluation was performed for the year ended 31 December 2015. (C) Included in plant
and equipment is capitalised work in progress with a net book value of $7,285,650 (2015: $25,460,875) which is transferred to the relevant asset category
(including software) once the project is complete. Transfers and other adjustments primarily comprise of transfers from work in progress during the year.
All transfers from work in progress in 2015 related to plant and equipment and are therefore reflected in the plant and equipment additions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6869
3.3 TRADE AND OTHER RECEIVABLES
2016
$’000
2015
$’000
Trade receivables
45,043
96,382
Provision for impairment
(1,042)
(2,146)
44,001
94,236
Amounts due from related companies (note 7.1.2)
750
304,931
Other receivables and prepayments
8,880
10,703
Total current trade and other receivables53,631
409,870
Movements in the provision for impairment are as follows:
Balance at beginning of the year
2,146
1,805
Provision for impairment expense
596
1,356
Receivables written off
(1,700)
(1,015)
Provision for impairment1,042
2,146
3.3.1 Classification
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business. Receivables and other financial assets are
classified as subsequently measured at amortised cost
on the basis of both the Group’s business model for
managing the financial assets and the contractual cash
flow characteristics of the financial asset. Loans to related
parties are unsecured, interest bearing and repayable at
call. If collection of the amounts is expected in one year
or less they are classified as current assets.
3.3.2 Fair values of trade and other receivables
Due to the short-term nature of the current receivables,
their carrying amount is considered to be the same as
their fair value.
3.3.3 Impairment and risk exposure
The maximum exposure to credit risk at the reporting
date is the higher of the carrying value and fair value of
each receivable. The Group does not hold any collateral
as security. Refer to note 4.8.3 for credit risk and note
4.9 for fair value information.
Accounting policies
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.
Receivables are monitored on an individual basis and the company considers the probability of default upon
initial recognition of the receivable and throughout the period and provides for receivables expected to be
impaired. The amount of loss is recognised in the income statement within other expenses. When a trade
receivable is uncollectible, it is written off against the provision account for trade receivables. Subsequent
recoveries of amounts previously written off are credited against other income in the income statement.

3.4 TRADE AND OTHER PAYABLES
2016
$’000
2015
$’000
CURRENT PAYABLES
Lease liability
833
833
Amounts due to related companies (note 7.1.2)
2,654
322,304
Employee entitlements
7,1 0 4
11,302
Trade payables and accruals
55,788
91,758
Total current trade and other payables66,379
426,197
NON-CURRENT PAYABLE
Lease liability
13,423
12,859
Employee entitlements
-
1,075
Total non-current trade and other payables13,423
13,934
Refer to note 4.8 for information regarding risk exposure, note 4.9 for further fair value considerations and note
4.6 for lease commitments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7071
3.5 NET TANGIBLE ASSETS
Net tangible assets per share is a non-GAAP measure that is required to be disclosed by the NZX Listing Rules.

The calculation of the Group’s net tangible assets per share and its reconciliation to the consolidated balance
sheet is presented below:
2016
$’000
2015
$’000
AS AT 31 DECEMBER
Total assets
483,540
1,295,428
Less intangible assets
(329,776)
(597,100)
Less total liabilities
(197,981)
(663,604)
Net tangible assets(44,217)
34,724
Number of shares issued (in thousands)
A
196,011
196,011
Net tangible assets per share($0.23)
$0.18
(A) Due to the share consolidation in the current period (refer to note 4.1), the number of ordinary shares outstanding during the year ended
31 December 2015 was retrospectively adjusted to enhance comparability. Had the shares outstanding as at 31 December 2015 of 378,550,000
been used, the net tangible assets per share as at 31 December 2015 would be $0.09.

Accounting policies
Trade and other payables
Trade payables, including accruals not yet billed, are recognised when the Group becomes obliged to make
future payments as a result of a purchase of assets or services. Trade payables are carried at amortised cost
which is the fair value of the consideration to be paid in the future for goods and services received. Trade
payables are unsecured and are generally settled within 30 to 45 days.
Leases
Finance leases are leases of property, plant and equipment where the Group, as lessee, has substantially all
the risk and rewards of ownership. Finance leases are capitalised at the lease’s inception at the lower of the fair
value of the leased property and the present value of the minimum lease payments. A corresponding liability
is also established and each lease payment is allocated between the liability and finance charges. The interest
element is charged to the income statement over the period of the lease. Leased assets are amortised on a
straight line basis over the term of the lease, or where it is likely that the Group will obtain ownership of the
asset, the life of the asset. Leased assets held at balance date are amortised over the shorter of the estimated
useful life or the lease term. The Group does not currently have any material finance leases.
Operating leases are other leases under which all the risks and benefits of ownership are effectively retained by
the lessor. Operating lease payments, excluding contingent payments are charged to the income statement
on a straight line basis over the period of the lease, net of lease incentives, which are classified as payables and
amortised over the life of the associated lease.
Lease incentives are presented as part of the lease liabilities and are recognised in the income statement on a
straight line basis over the lease term.
Employee entitlements
Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be wholly
settled within 12 months from the reporting date are recognised in payables and accruals in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled. Amounts to be settled more than 12 months after the reporting date are recognised as a
non-current payable. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
measured at the rates paid or payable.
Short-term incentive plans
A liability for short-term incentives is recognised in trade payables when there is an expectation of settlement
and at least one of the following conditions is met:
· there are contracted terms in the plan for determining the amount of the benefit;
· the amounts to be paid are determined before the time of completion of the financial statements; or
· past practice gives clear evidence of the amount of the obligation.

Liabilities for short-term incentives are expected to be settled within 12 months and are recognised at the
amounts expected to be paid when they are settled.
Refer to note 4.3 for disclosures relating to share based payments, note 7.1.1 for key management
compensations and note 6.1 for further information on the demerger.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS