NZME LIMITED ANNUAL REPORT

28 March 2018


Dear Shareholder,

It is with pleasure we welcome you as a shareholder in NZME Limited (“NZME”) and thank you for your
investment. We also encourage you to keep an eye on what is happening with the company by visiting NZME’s
investor information website at http://www.nzme.co.nz.

Please complete the enclosed holder information form and return to our registry, Link Market Services (“Link”) in
the reply paid envelope, or update this information at www.linkmarketservices.co.nz. You will need your holder
number and Authorisation Code (FIN) handy.

Annual report and half year reports
A copy of NZME’s latest Annual Report and Half Year Report is publicly available, and copies of our future Annual
Reports and Half Year Reports (including for the current accounting period) will be publicly available, on our
website at http://www.nzme.co.nz/investor-relations/financial-reports/.

You may, at any time, request a free copy of the most recent and future Annual Reports and Half Year Reports. If
you wish to request a free copy, please contact Link emailing operations@linkmarketservices.co.nz (Please use
“NZME Report” as the subject line for easy identification).

Direct credit of Dividend Payments
Direct credit is the preferred method of paying dividends to our investors. To enable NZME to deposit any possible
future dividend payments securely into your bank account on the day of payment, please provide us with your
bank account details. This will minimise costs and the risk of lost cheques or fraud. Detailed payment advice will
be provided to you for any payments that are made.

Receiving your Investor communications electronically
We encourage investors to elect to receive investor communications electronically because it is faster, cheaper
and better for the environment. We encourage you to select this option on the form.

IRD Number
Please provide your IRD number. If you have a Certificate of Exemption from RWT please tick the box on the form
and email or post a copy of the certificate to Link.

SMS text-alert service
LINK has an SMS text-alert service you can sign up for by completing the relevant section on the form. You will
receive a text if your holding balance, bank account or address changes, or if you request a FIN replacement.

Investor information
Please find information for contacting Link overleaf. Link can assist with your holding and other information that
may be helpful, especially if you are an inexperienced investor.


Yours sincerely,



Peter Cullinane
Chairman

2

INVESTOR INFORMATION:

Common Shareholder Number or Holder Number
Your CSN/Holder Number is printed on your Securities Transaction Statement, along with the details of your
holding. Please quote this number whenever you contact Link.

Authorisation Code (FIN)
Your FIN is issued to you by Link if you are a first-time investor. It is a four-digit number, which needs to be stored
in a secure place and should not be used on any documentation in conjunction with your CSN/Holder Number.
You will be required to quote your FIN to your broker if you sell your shares.

Link contact information
If you have any questions about your holding, please contact Link by visiting www.linkmarketservices.co.nz. You
will require your CSN/Holder Number and Authorisation Code (FIN). Note that joint or corporate holders will need
to register a portfolio before any holding details can be updated.

Website www.linkmarketservices.co.nz
Email enquiries@linkmarketservices.co.nz
Street Address Level 11, Deloitte House, 80 Queen Street, Auckland
Postal Address PO Box 91976, Auckland 1142
Phone 09 375 5998
Fax 09 375 5990

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28 March 2018



Dear Shareholder

NZME LIMITED ANNUAL REPORT

The NZME Limited (“NZME”) Annual Report for the period ended 31 December 2017 is now available on our website at
http://www.nzme.co.nz/investor-relations/financial-reports/. Copies of our past reports are also available from the same
website.


You have the right to receive at any time, upon request and free of charge, a printed or electronic copy of NZME’s most recent
and future Annual and Half Year Reports. If you wish to receive a printed copy of the current Annual Report or an electronic
copy of future Annual and Half Year Reports, you can request these reports by visiting the Link Market Services Investor Centre
at https://investorcentre.linkmarketservices.co.nz and updating your communication preferences. You will require your
CSN/Holder Number and Authorisation Code (FIN) to access and update your holding details.

Alternatively, please complete and return this form at any time to our registry, Link Market Services either by mail to PO Box
91976, Auckland, by fax to (09) 375 5990, or by scanning and emailing to operations@linkmarketservices.com (please use
“NZME Annual Report” as the subject of the email for easy identification).

I would like to receive a printed copy of the Annual Report for 2017 and Half Year and Annual Reports for future periods


If you do not complete this form or notify us through the Link Market Services Investor Centre of your communication
preferences (i.e. that you would like to receive copies of the Half Year and Annual reports in hard copy), you will not be sent
printed copies of our Annual and Half Year Reports.

Email Communications
If you do not currently receive your NZME 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:




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
Please mark this box with a “✔” if you wish to receive a printed copy

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Page 1
ANNUAL REPORT
NZME LIMITED
For the year ended 31 December 2017

Page 2Page 3
CONTENTS
NZME FY17 Results Summary
4
Letter From The Chair
6
How We Create Value
10
Letter From The CEO
12
Digital Initiatives
16
Merger Update
19
Strategic Plan
22
Our People
23
Our Communities and The Environment
28
The NZME Board
31
The NZME Executive Team
32
Corporate Governance
34
Other Statutory Information
44
Consolidate Financial Statements
48
Independent Auditor’s Report
97
Directory
102
This annual report is dated 27 March 2018
and is signed on behalf of the Board of Directors by:
Peter Cullinane
Chair
Carol Campbell
Director

Page 4
Trading Revenue2
$387.7m
4% FY16 Pro forma2 $404.7m
Trading NPAT2
$26.7m
4% FY16 Pro forma2 $ 27.8 m
Trading EBITDA2
$66.2m
2% FY16 Pro forma2 $ 67. 2 m
Trading Earnings Per Share2
13.6cps
4% FY16 Pro forma2 14.2cps
NZME FY17 RESULTS SUMMARY
(1) The FY16 Statutory NPAT of $74.5m was impacted by the demerger from HT&E (formerly APN), discontinued businesses and tax
payments, and is therefore not comparable with the FY17 result as explained in the Supplementary Information on pages 30-34 of
the NZME Full Year 2017 Result’s Presentation available on the Company’s website. (2) All Trading and Pro forma measures shown
here are non-GAAP measures that are explained and reconciled in the Supplementary Information on pages 30-34 of the NZME Full
Year 2017 Result’s Presentation available on the Company’s website. (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.
Statutory NPAT1
$20.9m
Final Dividend Fully Imputed3
6.0cps
Scheduled for payment on 3 May 2018
Full Year Dividends 9.5cps

Page 6Page 7
LETTER FROM THE CHAIR
(1) Nielsen CMI, November 2017 fused database: Q4 16 – Q3 17 (population 10 years +).
Based on unduplicated weekly reach of NZME newspapers, radio stations, and monthly
domestic unique audience of NZME’s digital channels (2) All references to “Trading” and
“pro forma” are non-GAAP measures that are fully explained and reconciled on pages
30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s
website. (3) See also page 10 of the NZME Full Year 2017 Results Presentation (available
on the Company’s website) for a more detailed analysis of the market comparisons.
“NZME’s strategy continued
to add value for shareholders
in the 2017 financial year.”
Peter Cullinane
Chair
I was honoured to be named Chair when
Sir John Anderson retired in December
2017 and I am pleased to be able to report
that in our first full year as a standalone
company NZME Limited delivered a solid
earnings performance.
The financial results featured continued
Digital revenue growth, a slowing rate of
decline in Print advertising revenue and
an improvement in Radio revenue trends
over the year. NZME’s strong focus on
cost control and business integration
again assisted earnings.
This has enabled the Board to declare a
fully-imputed final dividend of 6.0 cents per
share to be paid in May, making 9.5 cents
per share in dividends for the full year.
Bringing Print, Radio and Digital together
to form NZME has provided revenue
opportunities and cost efficiencies. In the
medium term, NZME aims to be a growth
business and, as such, we continue
to explore ways to further improve
efficiency, address customer needs, and
establish new revenue streams.
Our audience of 3.2 million1 New
Zealanders is a key driver of value. The
most recent survey results show our
audience grew again in 2017, supported
by an increase in nzherald.co.nz
audience and Radio listener growth.
Our strong brands in Print, Radio and
Digital provide multiple contact points
with our audience, and we often remain
in touch with an audience member
over an entire day across our various
platforms; over breakfast, in the
workplace, during the commute and in
the evening. This unique offering gives
our advertising customers multiple
opportunities in a single day to engage
with their marketplace through NZME.
Given a challenging third quarter of 2017,
impacted in part by the general election
and the ongoing headwinds in traditional
advertising markets, we were heartened
that Trading EBITDA2 was down just 2%
compared to pro forma2 2016.
Print advertising revenue trends improved,
Radio revenue returned to growth in the
fourth quarter, and we saw continued
strong growth in Digital revenue. Moreover,
NZME outperformed the market in 2017 in
each of these key areas3.
Revenue was assisted by operational
and content initiatives, while a strong
focus on efficiency through our business
integration and process improvement
further enhanced profitability.
NZME continues to invest in growth,
launching our exciting new digital
classifieds platforms DRIVEN, YUDU and
OneRoof in recent months. You will no
doubt see a lot more of these brands in
automotive, employment and property
over the course of 2018. If you haven’t
yet visited these sites I commend you to
have a look and see what a fantastic user
experience they offer.
Pursuing the merger with Stuff Limited
(previously Fairfax New Zealand Limited)
remains a priority. NZME believes the
transaction would be positive for New
Zealand, its employees and shareholders
due to enhancing the competitiveness of
locally produced content for our news,
sport and entertainment offerings. Further
information on the proposed merger is
included on page 19 of this Annual Report.
Sir John Anderson retired as Chairman
and from the Board of NZME on the 8th
of December 2017. Sir John made an
invaluable contribution to NZME, including
leading the Board through the demerger
from HT&E Limited, and listing in June 2016.
Sir John has also made a significant
contribution over a long period to the
growth of businesses in New Zealand.
His extensive business and governance
experience has been an asset to the
Company during NZME’s first year as a
listed company and all of us at NZME wish
Sir John the very best for his retirement.
Following Sir John’s retirement, NZME
appointed David Gibson as an independent
director. David has a strong background
in strategy and finance with over 20
years’ investment banking experience.
We are expanding our Board to achieve
the optimal mix of general business
experience and specific skills. I have
been encouraged by the interest shown
and the depth of talent we have to
choose from. I am fully confident that
we will have an exemplary Board team,
to further enhance the Company’s
governance and ensure NZME continues
to have the appropriate resources and
skills to support its growth strategy.
The Board would like to thank our
employees for all their commitment
and dedication throughout the year.
Ours is a dynamic industry. While there is
no question that we will face headwinds
in some areas, I am excited about the
many opportunities NZME has to improve
its business and to grow.
Given our market leading brands and
audience reach, great people, and unique
integrated offering, we are well placed to
build on our existing assets as well as re-
imagine our business to grow shareholder
value in the medium to long term.

D'Arcy Waldegrave and Goran Paladin
Radio Sport Hosts
THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.
The NZ Herald, Newstalk ZB and Radio Sport
are joining forces to bring you unbeatable
coverage of the upcoming rugby Series.
Arm yourself, with live results, latest
breaking news, in depth analysis,
and expert opinion.
United in battle
We’ll be there
Laura McGoldrick
NZ Herald Focus Host
THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.
The NZ Herald, Newstalk ZB and Radio Sport
are joining forces to bring you unbeatable
coverage of the upcoming rugby Series.
Arm yourself, with live results, latest
breaking news, in depth analysis,
and expert opinion.
We’ll be there
Come, join us
We’ve been here before
We’ve shared the battle
We’ve heard that roar
The NZ Herald, Newstalk ZB and Radio Sport are joining forces
to bring you unbeatable coverage of the upcoming rugby Series.
Arm yourself, with live results, latest breaking news,
in depth analysis, and expert opinion.
Brett Phibbs
NZ Herald Chief Photographer
THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.
The NZ Herald, Newstalk ZB and Radio Sport are joining forces
to bring you unbeatable coverage of the upcoming Series.
Arm yourself, with live results, latest breaking news,
in depth analysis, and expert opinion.
Chris Allen and Trevor McKewen
The New Zealand Herald
THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.THEY’RE COMING: ARM YOURSELF.
Our wisdom is our strength
The team is our courage

C
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P
A
B
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I
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I
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C
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+

C
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S
RADIO
SPORT
NATIVE
CONTENT
EXPERIENTIAL
EVENTS
DIGITAL
MARKETING
SERVICES
BRAND
ENGAGEMENT
DIGITAL
PRINT
ENT.
NEWS
CREATIVE
CONTENT
CREATION
DIGITAL
CLASSIFIEDS
MARKETPLACES
DATA &
INSIGHTS
VIDEO &
PRODUCTION
AUDIENCE
TARGETING
STRATEGY
& PLANNING
CHINESENZHERAL
D.C
O.NZ
Page 11Page 10
HOW WE CREATE VALUE
NZME offers advertisers a unique opportunity to access a growing
audience via its fully integrated multi-platform brands.
(1) Nielsen CMI, November 2017 fused database: Q4 16 – Q3
17 (population 10 years +). Based on unduplicated weekly
reach of NZME newspapers, radio stations, and monthly
domestic unique audience of NZME’s digital channels.
2.6million1.2million0.7million
in the North Island1
2% YoY
in Auckland1
2% YoY
in South Island1
2% YoY
NZME’s reach continues to
grow and cross-pollinate
UP 2% YOY, 3.2 MILLION1 NEW
ZEALANDERS READ, WATCH,
LISTEN TO OR OTHERWISE
ENGAGE WITH OUR BRANDS
NZME REACHES:
OUR GROWING NATIONAL AND
LOCAL PRESENCE ALLOWS US TO
OFFER ADVERTISERS BROADER
ACCESS TO THEIR TARGET MARKETS
THROUGH OUR INTEGRATED MULTI-
PLATFORM PRESENCE

Page 12Page 13
LETTER FROM THE CEO
As CEO, it has been rewarding to see the
achievement of our strategic priorities
to improve shareholder value and deliver
results in the 2017 financial year. I am
pleased to report that we had a productive
year and made good progress on the
implementation of our strategy and
adding value for shareholders.
With an unmatched portfolio of leading
brands, delivering premium News,
Sport and Entertainment content, we
are uniquely placed to help advertisers
engage with their customers.
In the context of the headwinds faced by
the media sector in traditional advertising
markets, we are pleased with our solid
financial results for 2017. These results
reflect significant steps, both in our
existing assets and in establishing new
businesses, to achieving revenue growth
in NZME in the medium term.
NZME reported statutory net profit after tax
(NPAT) of $20.9 million in 2017. Given the
changes in the structure of the Company
since listing in 2016, we see our “Trading”1
and “pro forma”1 figures as offering a useful
view of NZME’s underlying performance.
Trading Revenue1 was $387.7 million in 2017,
down 4% on 2016. We were pleased to
limit the revenue decline when many of
our peers globally have seen significant
advertising revenue erosion. This was
achieved by limiting declines in Print
revenues, while improving momentum
in Radio and achieving strong growth in
Digital revenue.
We are equally encouraged by Trading
Earnings before Interest, Tax, Depreciation
and Amortisation (“Trading EBITDA”)1 of
$66.2 million in 2017, down just 2% on
2016. Our continued focus on efficiency
and full integration of the business has
again underpinned an excellent cost
performance and helped us achieve a
5% reduction in costs in 2017, supporting
Trading EBITDA1 despite lower revenue.
Our Trading Net Profit After Tax1 was
$26.7 million in 2017, down 4%. This
translated to Trading Earnings Per
Share1 of 13.6 cents and total dividends
declared for 2017 of 9.5 cents per share.
NZME has healthy cash flow, enabling a
$5.7 million reduction in net debt over
the year to $90.2 million at 31 December
2017. This was achieved on the back of
relatively stable Trading EBITDA1, and
capital expenditure within our plan.
Capital expenditure in 2017 was in
line with our expectations of $15.0
million. We expect to maintain this
level of spending in 2018, including the
capital component of the investment
in digital classifieds and other projects
under our 2018 plan.
It’s pleasing that we were able to pay
dividends to shareholders, implement
our growth strategy and reduce debt in
2017. This is consistent with our medium
term capital management objectives
for the Company.
In 2017, Print revenue was $221.3 million,
down 7% on pro forma1 2016. Despite the
challenging third quarter of 2017, in which
advertising spending was impacted by
the New Zealand general election and
a slowing property market, the rate of
decline in Print advertising revenue slowed
a little compared to pro forma1 2016.
We also maintained Print subscriber
revenue in 2017, which provides comfort
that despite major changes in the media
landscape, subscribers continue to
support our major publications.
Across the NZ Herald, Herald on Sunday
and five regional daily newspapers, our
subscriber base is strong. A 5% decline
in our average net circulation to the third
quarter of 2017 was better than the 7%
decline for the market, again reflecting
our brand strength and reader loyalty2.
The New Zealand print advertising
market declined an estimated 12%3
in 2017 while our pro forma1 print
advertising revenue declined only 9%
for the same period, which suggests
we are doing better than many of our
competitors in retaining advertisers,
“NZME now operates as an
integrated audience-centric
media business, across Print,
Radio and Digital channels.”

Page 14Page 15
Michael Boggs
Chief Executive Officer
(1) All references to “Trading” and “pro forma” are non-GAAP measures that are fully explained and reconciled
on pages 30 to 34 of the NZME Full Year 2017 Results Presentation available on the Company’s website.
(2) Nielsen CMI, NZ Herald AIR trend to Q3 17. AP15+. ABC Circulation Q4 16 - Q3 17. (3) PwC NPA Quarterly
Performance Comparison Report Q4 2017. (4) Nielsen CMI Q4 2016 – Q3 2017. AP15+. (5) GfK Radio Audience
Measurement. Total NZ Survey, NZME & Partners. Trended till T4/2017. Cumulative Audience. Mon-Sun 12mn-
12mn, All 10+. (6) GfK Radio Audience Measurement, The Hits Auckland, trended till T4/2017. Cumulative
Audience. Mon-Fri 6am-9am, 25-54.
reflecting a healthy readership of our
leading publications.
The NZ Herald remains our most valuable
media asset and we are working hard to
continue to grow its audience to further
enhance its value.
The daily brand audience of the NZ
Herald passed 1 million for the first time
in the third quarter4, across print and
digital, assisted by events such as the
Americas Cup in the first half of 2017.
There’s a lot more work to do but we’re
encouraged with these achievements in
the print business in 2017. Achieving this
on a consistent basis is a focus for 2018.
Radio and Experiential revenue was
$110.1 million in 2017, down 4% on 2016.
After a period of declining radio revenue,
we achieved our priority of returning
radio revenue to growth in the final
quarter of 2017.
The improvement in Radio was supported
by the completion of the sales team
integration, and talent and content
enhancements. It’s still early days in the
turnaround of this business but trends
are encouraging and we look forward to
seeing the full benefit of our initiatives in
further audience growth and improved
financial results over the medium term.
On radio content, we continue to pursue
the best offer in the market to inform,
entertain and attract radio audiences,
and this is demonstrated in our ratings
performance in 2017.
New Zealand’s leading news and talk
station, Newstalk ZB, retained the
highest station market share nationally,
also winning a number of other key
categories5. The Hits breakfast show, with
Sarah, Sam and Toni, also grew audience
in every survey since launch in early 20176.
On the digital radio side, iHeart Radio
registered users reached 700,000 in
2017, which represents 35% growth in
just 12 months.
In Digital and e-Commerce, revenue
grew 8% overall to $56.3 million, but
digital display revenue grew 19%, well
above market growth supported by
strong growth in mobile advertising and
video. This is a very exciting part of the
NZME story as we have a number of
initiatives in train to maintain this strong
momentum in Digital revenue.
We continue to emphasise new
product development, launching our
first multi-platform content series,
including podcasts, “Chasing Ghosts” in
October, which introduces a new level of
storytelling. In another exciting initiative,
NZ Herald and Newstalk ZB flash briefings
and ZM’s custom Amazon Alexa skill were
made available for the launch of Alexa in
New Zealand, in February 2018.
The team has had a very busy year
as we launched our new digital
classifieds marketplaces in motoring,
employment and property, called
DRIVEN, YUDU and OneRoof.
This supports our objective to become a
growth business in the medium term.
NZME intends to create market-leading
platforms and experiences in each
of the three verticals, supported by
competitive advantages as a unique
multi-platform media company.
And we are not just about emulating
existing online offers. Each of the
new sites provides an innovative user
experience and proposition that aims
to evolve the market, and consumer
behaviour. We have included further
details of each of these new initiatives
on pages 16 to 18 of this Annual Report.
The launch of these three new platforms
is only beginning and, as such, it’s very
early days. While we see the medium-
term opportunity for these platforms as
appealing, the market is competitive and
our financial expectations in the initial
phase of operation remain modest.
We are excited by these opportunities,
but this is just one of the areas where we
are looking to drive shareholder value.
We also remain focused on our operational
priorities, which include retaining
revenue in our traditional businesses
and improving operational efficiency, as
these are also fundamental to achieving
our goals for NZME shareholders.
Developing our people and talent is very
important. Given the pace of change in
our industry we’ve focused strongly on
employee engagement. Results have
been positive and we are starting to see
the benefits of this across the Company.
The final major area of focus for 2017 was to
progress the merger with Stuff Limited. We
have been granted leave to appeal the High
Court’s adverse ruling on the matter, with a
four-day hearing in the Court of Appeal set
down for 5 to 8 June 2018 and judgment
expected in the second half of 2018.
On page 22 we outline our strategic plan,
based around the three horizon model.
It focuses on optimising our existing
business, while launching new ventures
to take advantage of our existing
audience and customer relationships,
and identifying new business models
that address unmet customer needs.
We remain very much focused on
growing audience and engagement.
This will be achieved through the
amplification of NZME’s brands and
developing more planned, unique,
local and premium content and the
exploration of paid content solutions.
Returning total revenue to growth across
the business is a focus for the medium
term. Retaining print revenues as best we
possibly can, growing digital revenue, and
“Our leading audience, brands
and industry relationships provide
a tremendous opportunity to
establish new revenue streams.”
capitalising on radio enhancements, is
expected to help us to achieve this goal.
We also want to make sure we maintain a
strong balance sheet, enabling us to invest
for growth, reduce debt, maintain financial
stability, and maximise shareholder returns.
I would like to echo the Chairman’s
comments about the efforts of our
dedicated people. Aiming to be a growth
business in a challenging industry requires
constant innovation and effort and the
whole NZME team has been amazing in
2017 in embracing this mantra.
I also offer our thanks to the 3.2 million
Kiwis that make up our audience, as
well as our suppliers, business partners,
customers and shareholders for their
continued support.

Page 16Page 17
DIGITAL INITIATIVES
DRIVEN is the destination for car buyers and motoring enthusiasts alike where, with our DRIVEN Ambassador, Sam
Wallace, you can find the latest car news, reviews, and road tests; alongside over 30,000 dealer and private car listings.
DRIVEN makes it easier than ever to buy or sell a car with buyers for new and used vehicles across all price
points together with reviews and the soon-to-be-released DRIVEN Toolbox. The Toolbox features easy-to-
use tools to discover what a car is worth, the best time to buy or sell a car and details regarding the cost of
ownership without having to trawl numerous websites – DRIVEN has put it all in one place.
For those with a passion for cars or motorsport, DRIVEN offers the latest car news and high octane motorsport
action from New Zealand and around the globe with in-depth articles, videos and content to keep you up to
date. It also contains a new video series, DRIVEN News, where our DRIVEN Ambassador provides you with the
latest information on all things motoring.
YUDU is about you. The astronaut, the rock star, the whatever-it-is-you-want-to-do.
YUDU is more than just another job listing site. It is a dedicated career platform which aims to connect employers
to the right talent that fits the role and to connect candidates to the right role that fits their talent. YUDU allows
jobseekers to create a profile online and apply for available roles directly from YUDU.
YUDU aims to empower the user to never stop learning, never settle for less, and never miss the chance to do
what they do best.
YUDU is about more than just job hunting. There are twelve dedicated Career Hubs filled with news, tips and
insights aimed at keeping users informed about the latest developments in their industry.
Through these Career Hubs, YUDU also provides opportunities for users to get involved with personality based
profiles, relevant news, videos and more.
WE’RE
ALL ABOUT
WHAT
YOU DO.
DEALER & PRIVATE LISTINGS
|
REVIEWS
|
NEWS
FIND YOUR NEXT CAR NOW
SAM WALLACE - CAR FANATIC

Page 19Page 18
PROPOSED NZME/STUFF
LIMITED MERGER UPDATE
PROCESS UPDATE
· The previous merger implementation agreement in respect of the proposed merger between NZME Limited
(“NZME”) and Stuff Limited (“Stuff”) terminated on 5 March 2018. However, if an appeal of the transaction
is successful we intend to negotiate a new agreement to implement the merger, with the transaction also
expected to be subject to finance, board and shareholder approval.
· NZME and Fairfax Media Limited’s (“Fairfax”) appeal to the High Court of the New Zealand Commerce Commission’s
(“NZCC”) decision to decline the merger was declined in a judgement issued on 19 December 2017.
· The parties have been granted leave to appeal the High Court’s adverse ruling on the matter, with a four-day
hearing in the Court of Appeal set down for 5 to 8 June 2018 and judgement expected in the second half of 2018.
· There is a further right of appeal to the Supreme Court with leave on points of general public importance.
RATIONALE FOR A FURTHER APPEAL
· NZME and Fairfax continue to believe the NZCC was wrong in fact and wrong in law to decline clearance
or authorisation for the merger. The questions on appeal are focused on the issue of plurality.
· NZME continues to share the costs of the legal process with Fairfax. The shared costs going forward are
expected to be less than $0.5m, significantly outweighed by the potential benefits of the transaction,
both for shareholders and the New Zealand public.
It’s hard to make the right property decision when you’re scattered between websites, trying to make sense of
and consolidate all the information from real estate agents, banks, maps and more. OneRoof makes this easier
by bringing it all together on one platform.
Regardless of whether you’re buying, selling or renting, OneRoof helps to make property decisions easier by
enhancing New Zealand’s latest real estate listings with up-to-date property and market insights. OneRoof provides
enhanced search capabilities, allowing users to search for properties based on criteria that may be important to
them, such as school zones, valuations and yield growth, journey times and other location-based benefits.
As well as offering real estate agents a platform to connect with buyers, OneRoof also caters to renters,
allowing them to apply for tenancies directly through the platform. OneRoof will build on NZME’s strong property
resources — such as Herald Homes — and is backed by the Company’s network that reaches 3.2 million Kiwis.
All things property
Search for your
property under

Over 60% of you read the news
on your phone.

So we redesigned the Herald site
with mobile in mind – with
dynamic content, larger imagery,
and bite-size summaries to keep
you up-to-date while you’re on
the move.
DISCOVER MORE
WITH YOUR NEW
You said your life was busier –
that you had less time to read
the news.

So we redesigned the Herald site
to give you an instant snapshot
of what’s going on, right now –
with bite-size summaries,
intuitive navigation, and faster
loading speeds.
DISCOVER MORE
WITH YOUR NEW
You told us you’re often
overwhelmed by information.
So we redesigned the Herald site
to highlight the top stories of the
hour, with a simpler structure and
clearer signposting to the issues
that matter most to you.
DISCOVER MORE
WITH YOUR NEW
You told us you’re often
overwhelmed by information.
So we redesigned the Herald site
to highlight the top stories of the
hour, with a simpler structure and
clearer signposting to the issues
that matter most to you.
DISCOVER MORE
WITH YOUR NEW
You told us you wanted to
broaden your horizons.

So we redesigned the Herald site
with enhanced navigation, a
clearer interface, and pointers to
in-depth stories and opinion
pieces – deepening your
understanding across a wider
range of topics.
DISCOVER MORE
WITH YOUR NEW

Page 23Page 22
STRATEGIC PLAN
1. Grow audience and engagement through amplification of NZME’s brands and increased
focus on planned, unique, local and premium content, supported by continued implementation
of the Washington Post arc roadmap.
2. Return advertising revenue to growth by continuing to retain Print revenues, drive Digital
revenue growth and capitalise on Radio coverage, content and talent enhancements.
3. Effective cost and capital management through exploring opportunities to leverage
our existing fixed cost base and continued focus on improving balance sheet strength.
4. Engage and develop our people by continuing to focus on improving leadership and
talent succession planning.
5. Grow new revenue streams through the launch of DRIVEN, YUDU and OneRoof,
improved data monetisation and developing a paid content proposition. Identify
and develop new business models.
6. Progress the Stuff merger to further improve our efficiency and underwrite the
competitiveness of New Zealand content generation and delivery.
OUR PEOPLE
We all want to be phenomenal at what we do. Success doesn’t just happen, it’s about delivering the best work in
the best way to the right audience. 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 key priorities (what
needs to be achieved) and our values (how these should be achieved).
OUR VALUES
Our Values make us who we are, and we express them at every turn. They are the stuff of our DNA; the things
that make us unique and different from everyone else in the industry. We deliver to our priorities by being
connected, curious and confident.
CURIOUS
GO BEYOND
CONFIDENT
LIVE IT, BREATHE IT
CURIOUS
GO BEYOND
BE
BE
CONNECTED
ENGAGE THE RIGHT PEOPLE
BE
CURIOUS
GO BEYOND
Horizon 1:
Optimising the Core
Offsetting declines in Print
advertising with growth in
Radio and Digital advertising,
and streamlining the cost base.
Horizon 2:
Beyond Advertising
Growing new revenue
streams that leverage our
audiences to generate new
revenue opportunities - Digital
classifieds and paid content.
Horizon 3:
Re-imagining
Identifying opportunities
to develop new business
models that grow audience
engagement and deliver new
revenue streams.

Page 24Page 25
NZME sets itself apart by having talented
people who can make a difference for
our audiences and our customers.
Diversity and inclusion are key to
attracting and engaging the best talent
and we work very hard to make sure
everyone not only feels safe but looks
forward to coming to work.
We have a Diversity Policy that is available
on our website and established a
Diversity Committee in 2017 consisting
of a passionate group of individuals with
diverse backgrounds, experiences and
viewpoints to contribute to our efforts
in this space. “Diversity of all kinds -
gender, ethnic, cultural and sexual - is
key to a productive workplace. Great
solutions come from seeking opinions
and perspectives from a diverse
group. Our workplace is a slice of our
community so it’s important people
bring their whole selves to work. This
is what NZME is about,” says Michael
Boggs, NZME’s CEO.
We were actively involved in celebrating
Māori language week, including
challenging our people to learn a number
of new words every day; ranging from
colours and numbers to some Māori slang.
Other initiatives included an Instagram
contest where you name everyday objects
in Te Reo and photograph them creatively
to win a prize!
And speaking of language, NZME was
proud to support New Zealand Sign
Language week which included workshops
to learn the basics of New Zealand’s
third official language – Sign Language.
PEOPLE & DIVERSITY
Diwali is the five-day festival of lights,
celebrated by millions of Hindus, Sikhs
and Jains across the world. This year
our celebrations included a traditional
lamp lighting and Bollywood dance
performance, some delicious food and
treats and henna hand designs.
During 2017 we have put considerable
effort into youth employment,
participating in JobFest events in
Auckland and careers festivals in
Southland, Dunedin and Christchurch.
Our involvement with WorkChoice has
seen us speak at their youth employability
events in Auckland, Wellington and
Christchurch. We also had multiple
secondary school groups visit our offices
in Auckland, Wellington and Christchurch
for a first-hand experience of what working
at NZME is like.
As a result of our input into youth
employment and our involvement with
students, WorkChoice, JobFest and
various careers festivals right around
the country, NZME was nominated as
a finalist for the Young at Heart Awards
in the School Engagement and Work
Experience Award category.
This year we were pioneers in the media
industry as the first media company in
New Zealand to receive the Rainbow
Tick. The Rainbow Tick is awarded to
organisations that truly embrace making
their workplace a safe environment for
everyone, regardless of sexual orientation.
To celebrate being awarded the Rainbow
Tick, and to continue the crusade to
become an employer of choice and
cement our commitment to being a
truly diverse workplace, NZME proudly
displayed the rainbow in its brands
on Friday 13 October. The iconic New
Zealand Herald brand and well known
radio brands sported a rainbow Logo.
The Rainbow Tick forms part of our
wider Inclusion and Diversity strategy,
which includes nurturing a multicultural
workforce, encouraging you to “bring
your whole self to work” and truly
harnessing all our differences.
The charts on the next page demonstrate
our demographic breakdown as at 31
December 2017.
WELLNESS WEEK
We again hosted two wellness weeks
this year, one in May and one in October.
Wellness Weeks provide our people with
the opportunity to spend some time
reflecting on their health and wellbeing.
This year activities included free eyesight
testing, yoga sessions, flu jabs, healthy
breakfasts, boot camps and a host of
other activities around the country.
Please also refer to the Governance
section of this Annual Report for
additional information on Health & Safety.

Page 26Page 27
OUR PEOPLE (continued)
NZ European
55%
Middle Eastern / Latin
American / African
1%
Maori
3%
Undeclared
22%European
8%
Asian
7%
ETHNICITY
Incl. Undeclared
Full Time
69%
Casual
18%
Part time
9%
600
500
400
300
200
100
0
Contractor
4%
LENGTH OF SERVICE
GENDER/LEVEL
including undeclared
FemaleMale
Senior Leadership
Te a m
Executive
<1Y3-5Y21-30Y1-2Y11-20Y6-10Y31Y+
Staff
CONTRACT TYPE
Pacific Peoples
2%
Other Ethnicity
2%
AGE GROUP
<25
22%
55+Y
14%
Undeclared
5%
25-34Y
25%35-44Y
18%
45-54Y
16%
ENGAGEMENT
We believe that an engaging work
environment is essential to us
achieving our goals. We undertook two
engagement surveys last year to take
stock of what our people think. We
are very happy that participation rates
and overall engagement scores have
consistently increased over the last year.
To foster an inclusive and engaging
workplace, we also give our people other
opportunities to engage and say it as it
is. Our CEO is regularly joined by other
members of the Executive for his Kitchen
Catch-ups where different groups get
to interact, share and ask whatever is
on their minds. He also regularly invites
someone from the business to join him
as CEO for the day where they get an
inside look into what being CEO entails.
Boggsy’s Bus has become a bit of an
institution as well. Given that half of
NZME’s people are outside the Auckland
head office, it is an opportunity to build
a connection with all our people. The
CEO and others get to visit a number
of offices in the regions to make sure we
give all our people a chance to have their
say. In 2017 they visited Waihi, Katikati,
Tauranga, Te Puke, Rotorua, Taupo, Te
Awamutu, Hamilton and drove over
1,400 kilometres visiting our South Island
teams from Blenheim to Invercargill.
2017 AWARDS
NZME is proud to be the home of
some of New Zealand’s best talent and
2017 again provided us with plenty of
opportunity to celebrate.
At the 2017 Canon Media Awards,
the NZ Herald walked away with the
following top awards: Website of the
Year (nzherald.co.nz), Newspaper of
the Year (Weekend Herald), Weekly
Newspaper of the Year (Weekend Herald)
and Best Daily Newspaper (more than
30,000 circ) (NZ Herald). In addition,
many of our journalists won individual
awards including Matt Nippert being
awarded both Reporter of the Year
and Best Investigation, Dylan Cleaver
being awarded Sports Journalist of
the Year, Alan Gibson being awarded
Photographer of the Year, and Mike Scott
(with Olivia Carville) being awarded Best
Single Story. Herald Weekends Editor
Miriyana Alexander was also awarded the
prestigious Wolfson College (Cambridge
University) press fellowship. The NZME
Ellerslie team was also thrilled to receive
a Gold Medal for the 29 March edition
of the NZ Herald in the Publications
category at the Pride in Print awards.
Stephen Parker, Chief Photographer
from the Rotorua Daily Post was named
best regional sports photographer at
2017’s PANPA (Pacific Area Newspapers
Publishers’ Association) Awards in
Sydney. We also took home four awards
in Advertising & Marketing section of the
PANPA Awards.
We were delighted that NZH Focus, our
video news bulletin, was announced as
winner of the “Best Launch of a Brand
or Product to Create an Audience
Segment” award at the International
News Media Association (“INMA”) World
Congress in New York.
On the Radio front, NZME had a
fantastic showing at the 2017 NZ Radio
Awards. ZM was crowned Network
Station of the Year for excellence in
radio broadcasting and Hauraki once
again took “The Blackie” award for
funny and entertaining radio excellence.
Our radio stations ZB, The Hits and
Radio Sport and their presenters
received numerous awards in the Best
On-Air category and Best News and
Sport categories plus NZME teams took
home awards that recognise excellence
and effectiveness in marketing,
digital/social promotion, services to
broadcasting and associated craft.
33%
45%
55%
67%
55%
45%

Page 28Page 29
OUR COMMUNITIES
AND THE ENVIRONMENT
As a diverse, wide reaching, influential
and integrated media company, NZME
takes great pride in championing worthy
causes and facilitating community
conversations about the topics that
matter to our audiences. We use our
huge reach across NZ to support a
vast number of causes by providing
platforms and audiences to discuss
social issues and to campaign for good.
Under the Bridge was a long-form
documentary which saw us spending
a year following staff and students at
Papakura High. We were there for their
highs and lows, tribulations and triumphs.
The results were powerful, emotive and
compelling. We expected to be telling the
story of a school in decline. But we found
a heart-warming and raw tale of pride
and prejudice; a group of passionate
young people who, with the help of a new
principal, were determined to turn around
the school and its reputation.
Break the Silence – a campaign of care
and responsibility, was an investigative
series to start a national conversation
about youth suicide in New Zealand and to
encourage young people to speak up and
ask for help. It has been heartening to see
how deeply our readers and our people
have connected with the campaign.
Chasing Ghosts was our first true crime
podcast series, about the investigation
into the cold case disappearance of two
year old Amber-Lee Cruickshank in 1992.
Chasing Ghosts retraced the steps of
the police investigation and provided
exclusive new interviews and insights.
The Herald and World Vision ran the
Hidden Pacific campaign to raise funds
for the immense and urgent needs in
Melanesia, a hidden corner of the Pacific,
where our neighbours are isolated
and vulnerable with children and their
families lacking essential resources.
We are also proud to support and work
with local organisations such as the
Tauranga Art Gallery, the Port of Tauranga
Half; and support local initiatives like
the Property Brokers/The Hits Round
the Bridges fun run (this year raising
money for Alzheimers Whanganui), Thrive
Whanganui social enterprise business
expo and the Child Cancer Charity
Breakfast & Art Auction in Rotorua.
Our Christmas campaigns at multiple
locations across the country also help
raise food and funds for worthy causes
such as the Salvation Army’s foodbank.
Our footprint on the environment is
something NZME takes seriously. NZME
Print has been at the forefront of this
for some years now and has again
been awarded the Enviro-Mark Gold
certificate for excellence in environmental
responsibility. This is achieved after
satisfying a range of criteria including
having environmental objectives, targets
and KPIs; implementing environmental
programmes; monitoring environmental
aspects; having emergency preparedness
and response processes; and leadership
and commitment from top management.
Last year, NZME Print was recognised for
the site’s longstanding commitment and
compliance to the Enviro-Mark scheme of
which it has been a participant for the past
11 years. Our building at NZME Central has
a 5 Green Star – New Zealand Excellence
– rating which is the second highest rating
under the Green Star system that takes
into consideration the building or fitout’s
rating in nine categories: Energy, Water,
Materials, Indoor Environment Quality
(IEQ), Transport, Land Use & Ecology,
Management, Emissions, and Innovation.

Page 30Page 31
THE NZME BOARD
PETER CULLINANE
Independent Chair
Peter has a strong track record in
building and running companies
as well as advising companies on
business, marketing and advertising
matters. He is the founder and Chief
Executive of Lewis Road Creamery
and 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 is a Director of HT&E (listed
on the ASX). Peter was previously
on the Board of WPP AUNZ and
SKYCITY Entertainment Group. Peter
is a member of both the Advertising
and Marketing ‘Halls of Fame’. He
holds Masters degrees in Business
Administration and Management.
DAVID GIBSON
Independent Director
David has a strong background in
strategy and finance with over
20 years’ investment banking
experience, including as Co-Head of
Investment Banking in New Zealand
for Deutsche Bank and Deutsche
Craigs. During his finance career
David has advised on many of New
Zealand’s largest capital market
transactions, including within the
media industry. He holds a Bachelor
of Laws (LL.B. Hons) and a Bachelor
of Commerce in Economics.
CAROL CAMPBELL
Independent Director
Carol is a chartered accountant
and member of Chartered
Accountants of Australia and New
Zealand. Carol has extensive
financial experience and a sound
understanding of efficient Board
governance. Carol holds a number
of directorships across a broad
spectrum of companies, including
New Zealand Post, T&G Global, NPT
and the Fisher Listed Investment
companies – Kingfish, Barramundi
and Marlin Global where she is
also Chair of the Audit and Risk
Committee. She is also a Director
of Kiwibank. Carol was a Director
of The Business Advisory Group for
11 years, a chartered accountancy
practice, and prior to that a partner
at Ernst & Young for over 25 years.
She holds a Bachelor of Commerce
in Accounting.

Page 32Page 33
THE NZME EXECUTIVE TEAM
MICHAEL BOGGS
Chief Executive Officer
Michael was appointed
CEO of NZME in March
2016, prior to that he held
the CFO position. He has
been integral in developing
the strategy to grow
NZME’s presence in New
Zealand particularly in the
areas of digital, video and
events whilst upholding
the company’s traditional
brands including The
New Zealand Herald and
Newstalk ZB.
Joining NZME from
TOWER Limited where he
successfully managed
TOWERS multibillion
dollar assets, TOWERS’s
Pacific Islands operations,
TOWER’s earthquake
recovery programme
and the sale of TOWER’s
life insurance, health
insurance and investment
management businesses.
Prior to TOWER, Michael
held executive roles
in leading finance,
commercial and business
functions in major
telecommunications and
technology organisations
including TelstraClear
and previously Clear
Communications. In 2014
Michael was awarded CFO
of the year at the annual
New Zealand CFO Awards.
SHAYNE CURRIE
Managing Editor
As NZME’s Managing
Editor Shayne oversees
journalists and content
across the newsroom for
Newstalk ZB, Radio Sport,
The NZ Herald and NZME’s
regional and community
news brands. Shayne
has been a journalist
for 25 years, starting
as a crime reporter in
Wellington - and briefly,
New York - before
taking up newsroom
leadership roles. Shayne
has overseen major
change and innovation in
newsrooms throughout
New Zealand.
A former News Editor
and Deputy Editor of
the Sunday Star Times,
Shayne joined the
Company to help launch
the Herald on Sunday
and became editor of
that paper in 2005 and of
The NZ Herald in 2011. He
led the editorial project
to transform the NZ
Herald into the award-
winning compact format.
In 2016 Shayne was
awarded a scholarship
to Wolfson College at
Cambridge University in
the UK, studying audience
patterns in the digital age.
DEAN BUCHANAN
Group Director,
Entertainment
Dean has over two decades
of experience in developing
world class content and
talent in New Zealand and
internationally. Prior to
joining the Radio Network
as Chief Content Officer in
September of 2013, then
Managing Director Radio,
Dean was an international
consultant in the UK and
Europe. He then joined
DMG Radio Australia as
Group Programme Director
and was responsible
for launching the highly
successful Nova Network.
Dean has vast multimedia
experience having worked
in Touring with TV Touring
and established a successful
talent management
company Plus1 Talent,
developing the futures of
many key Australian TV
and Radio talent.
MATT HEADLAND
Chief Commercial
Officer
Matt joined NZME as
Head of Agency Sales
in August 2016 and in
September 2017 he was
appointed Acting Chief
Commercial Officer.
Within his time at NZME
Matt has restructured and
revitalised the agency
sales team, building and
leading an innovative
and fresh culture, while
delivering market leading
revenue growth.
Prior to the NZME group,
Matt held the position
of Director of National
Direct Sales TV, Radio and
Digital at Mediaworks New
Zealand. Matt has over
18 years of experience in
media, entertainment and
advertising industries,
where he has led
change and revenue
growth across multiple
businesses, these roles
include Country Manager
EMI Music New Zealand,
NZ Sales Manager
MTV Networks, Head
of Marketing EMI New
Zealand and founder of
Wonder and Thunder
Talent Management. He is
also the Chair of the Radio
Bureau Board.
LAURA MAXWELL
Chief Digital Officer
Laura first joined The Radio
Network as a Commercial
Director in July 2013,
moving to the role of
Group Director Digital
Media in 2014. In 2015,
Laura was promoted to
Group Revenue Director
and this title transitioned
to Chief Commercial
Officer as part of the
NZME transformation.
Prior to the NZME group,
Laura held the position of
General Manager/Director
for Yahoo! New Zealand.
Laura has over 20 years of
experience in media and is
well known and respected
in the industry, having
held roles including Sales
Director for both APN
Outdoor and Buspak
New Zealand. She is also
currently serving as the
Chair of the Interactive
Advertising Bureau and as
a Director of Restaurant
Hub and Chinese New
Zealand Herald. Laura
was also previously a
Director of the Newspapers
Publishers Association
and a board member of
the Radio Bureau.
SARAH JUDKINS
Chief Strategy Officer
& Acting Chief
Financial Officer
Sarah is responsible for
a number of strategic
projects across NZME and
the development of new
business initiatives. Sarah
joined NZME in 2014 to
lead the transformation
and integration of the
APN, TRN and GrabOne
businesses into NZME.
Sarah joined NZME
from KPMG where she
was a Director in the
transactions team,
specialising in operational
strategy, transaction
support and integration
planning. Sarah has 20
years’ experience working
with business managers
and stakeholders in a
wide range of industries
in New Zealand and
Asia developing and
implementing strategic
plans. Since returning
to New Zealand, Sarah
has worked with several
New Zealand companies
on a range of strategic
projects and brings a
breadth of financial and
strategic experience
to NZME. Sarah is also
currently the acting CFO.
MATTHEW WILSON
Chief Operations Officer
Matthew has lead several
of NZME’s operational
teams. With a passion
for media, Matthew
has over two decades
of experience working
across NZME’s newspaper
brands, including finance
roles in print, commercial,
content and corporate to
leading the Newspaper
Sales, Print and Herald
product functions.
Matthew was integral
to the launch of the
Weekend Herald brand
and the Herald on
Sunday newspaper in
2004, consolidated
newspaper sales and
distribution functions
across NZME in 2013 and
led the development of
NZME’s highly successful
distribution services
business in 2015. Matthew’s
extensive experience and
knowledge of the business
and its brands helps
drive NZME’s operating
performance.Matthew
currently also looks after
Culture & Performance.
ALLISON WHITNEY
General Counsel
Allison joined NZME in
2013 and with over 20
years’ legal experience,
manages the provision of
legal advice and company
secretarial services across
the NZME group - bringing
corporate, commercial,
intellectual property,
consumer and media law
experience to the table.
Prior to commencing her
role at NZME Allison held
roles both in-house and in
private practice, including
six years as Group Legal
Advisor to London-based
International Media Group;
UBM plc. During her time at
NZME, Allison has provided
legal guidance to the NZME
Group through several
significant milestones and
projects, including the 2014
re-brand from APN to NZME,
and the 2016 demerger
from APN and listing
of NZME on the
NZX and ASX.

Page 34Page 35
CORPORATE GOVERNANCE
GOVERNANCE FRAMEWORK
The Company is 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 Code 2017,
effective for reporting periods from 1
October 2017, (“NZX Code”).
The Group is committed to having a
good governance framework within
which it operates and therefore aims
to comply with the recommendations
of the NZX Code. The Corporate
Governance Policies set out in this
section reflect the Group’s governance
framework as at 31 December 2017
(unless otherwise stated). The
Board considers that the corporate
governance practices it has adopted
are in compliance with the NZX Code
unless otherwise stated below.
PRINCIPLE 1 - CODE OF ETHICAL
BEHAVIOUR
Directors should set high standards of
ethical behaviour, model this behaviour
and hold management accountable
for these standards being followed
throughout the organisation.
Code of Conduct & Ethics
The Company’s Code of Conduct &
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 Code of Conduct &
Ethics comprises certain fundamental
principles and demonstrates the high
standards of conduct expected of us.
The current Code of Conduct & Ethics
was adopted on 27 June 2016 (and
updated on 12 December 2017) 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 & Ethics
and the Whistleblower Policy.
The Company also has an Editorial Code
of Ethics highlighting that our principal
responsibilities are to the community and
the truth; undertaking to maintain the
highest ethical standards in our journalism
while balancing the right of the individual
with the public’s right to know.
Securities Trading Policy
The Securities Trading Policy details the
Company’s trading policy and guidelines,
including trading restrictions on dealing in
the Company’s quoted financial products
which applies to the Directors and all
employees. The Securities Trading Policy
places additional trading restrictions on
the Directors, the CEO and his direct
reports (and employees reporting
directly to them) and all participants in
any NZME employment incentive plans.
PRINCIPLE 2 - BOARD
COMPOSITION & PERFORMANCE
To ensure an effective Board, there
should be a balance of independence,
skills, knowledge, experience and
perspectives.
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 interests of the
Company. The objective of the Company
is to generate growth, corporate profit
and shareholder gain from the activities
of the Group. In pursuing this objective
the role of the Board is to assume
accountability for the success of the
Company by taking overall responsibility
for the strategic direction and monitoring
of operational management of the Group
in accordance with good corporate
governance principles. More details
regarding the main functions of the
Board can be found in the Board Charter
(adopted 12 December 2017) on the
Company’s website.
Director Independence and 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 31 of the Annual
Report. The roles of the Chair and Chief
Executive Officer are exercised by
different persons.
Nomination and 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.
Induction and Access To Information
and Advice
On appointment to the Board a Director
will be given a copy of the Board Charter,
an appointment letter covering the role
of the Board, the Board’s expectations
of the Director and any particular terms
of his or her appointment. The Director
will be offered induction training as
to the responsibilities of the Directors
and to enable the Director to become
familiar with the Company’s operations
and sites. All Directors have access
to the advice and assistance of the
General Counsel 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.
Skills and 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. Directors are expected to
maintain their knowledge of the latest
governance and business practices in
order to perform their duties.
Directors and 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 $156,500.
Performance Review
The Chairperson meets annually with
Directors of the Company to discuss
individual performance of Directors.
The Board reviews its performance as
a whole, and the performance of its
committees, on an annual basis. The
Board may choose to use external
facilitators, where appropriate, to assist
with reviewing the performance of
Directors, the Board and its committees.

Page 36Page 37
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.
Also refer to the Our People section on
page 23 of the Annual Report for more
information on our diverse workforce.
The table below includes the quantitative
breakdown as to the gender composition
of NZME’s Board and Officers
A
.
PRINCIPLE 3 - BOARD
COMMITTEES
The Board should use committees where
this will enhance its effectiveness in key
areas, while retaining Board responsibility.
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. The Board does not have a
As atBoardOfficers
A
MaleFemaleMaleFemale
31 December 20172163
31 December 20162156
(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.
separate Health & Safety Committee, but
Health & Safety is considered by the full
Board. The Board did not identify a need
for any other standing Board committees.
The Company also has a NZME Takeover
Response Manual (not publicly available)
which was in place for the full year, but as
recommended by Recommendation 3.6
of the NZX Code, was formally adopted
by the Board on 12 December 2017.
Audit & Risk Committee
The Committee consists of at least three
non-executive directors, with the majority
being also independent directors (one of
whom has 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 which is
available on the Company’s website.
For the year ended 31 December 2017, all
the Directors were members of the Audit
& Risk Committee and it was chaired by
Carol Campbell. Employees and external
parties may attend meetings of the Audit
& Risk Committee at the invitation of the
Audit & Risk Committee.
CORPORATE GOVERNANCE (continued)
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, in consultation with the CEO, the
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 2017, all the
Directors were members of the Governance
& Remuneration Committee and it was
chaired by Peter Cullinane. David Gibson will
take over as Chair in 2018. Employees and
external parties may attend meetings of the
Governance & Remuneration Committee
at the invitation of the Governance &
Remuneration Committee.
PRINCIPLE 4 - REPORTING &
DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting,
and in the timeliness and balance of
corporate disclosures.
Market Disclosure Policy
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 Market Disclosure Policy is designed
to ensure that:
· There is full and timely disclosure
of the Company’s activities and price
sensitive information to shareholders
and the market; and
· All stakeholders (including shareholders,
the market and other interested parties)
have an equal opportunity to receive
and obtain externally available
information issued by the Company.
The Company will immediately notify
the market of any material information
concerning the Company in accordance
with legislative and regulatory
disclosure requirements.
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/):
· Board Charter
· Code of Conduct & Ethics
· Remuneration Policy
· 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
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 2017,
the Company had three 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.

Page 38Page 39
Financial Reporting and Disclosure
The Company is committed to providing
financial reporting that is balanced,
clear and objective. The Audit &
Risk Committee oversees the quality,
integrity and timeliness of external
reporting. The Group’s Consolidated
Financial Statements for the year ended
31 December 2017 are set out on pages
48 to 96 of the Annual Report. Those
Consolidated Financial Statements have
been streamlined to make them easier
to read. Also refer to the letters from the
Chair and the CEO in this Annual Report
and the NZME Full Year 2017 Results
Presentation (available on the Company’s
website) for additional information.
Non-Financial Reporting and
Disclosure
The Company provides non-financial
disclosures relating to Health & Safety,
Risk Management, our interaction
with our communities and our impact
on the environment. We also include
information about our performance
against our operational priorities for the
year. Information about our strategic
plan for 2018 is included on page 22 of
the Annual Report.
NZME does not currently report under
a recognised environmental, social and
governance (“ESG”) framework, but aims
to provide non-financial information that
would be useful for our stakeholders.
This includes a summary of how we
create value as set out on pages 10 to 11
of the Annual Report and the information
referred to above. We intend to continue
enhancing our non-financial reporting
initiatives based on the feedback we
receive from our shareholders.
PRINCIPLE 5 - REMUNERATION
The remuneration of Directors and
executives should be transparent, fair
and reasonable.
Remuneration Policy
The Remuneration Policy outlines the
Company’s approach to the remuneration
of its Directors and executives. The
Governance & Remuneration Committee
is responsible for reviewing non-executive
Directors’ remuneration and benefits. The
pool available to be paid to non-executive
Directors is subject to shareholder
approval. The levels of fixed fees payable
to non-executive Directors should reflect
the time commitment and responsibilities
of the role. The Governance &
Remuneration Committee will obtain
independent advice, as necessary, and
will also consider the results of market
comparison and a benchmarking
assessment in setting the fixed fees
payable to non-executive Directors.
While the Company does not pay equity
based remuneration to its non-executive
Directors, it encourages those Directors
to hold shares in the Company to better
align their interests with the interests of
other security holders.
As noted under 4.2, the Governance &
Remuneration Committee is also
responsible for reviewing the
remuneration of the Chief Executive
Officer (“CEO”) and any executive
Directors and, in consultation with the
CEO, for reviewing the remuneration
packages of executives reporting directly
to the CEO. The Company conducts
external benchmarking analysis in order
to determine the market rate for a role.
The Company provides a combination
of cash and non-cash benefits and takes
a total remuneration approach. The
Company reviews remuneration with
the objective of achieving pay equity,
including by gender.
CORPORATE GOVERNANCE (continued)
Fees ($)
Chairman of the NZME Board150,000
Membership of the NZME Board100,000
Chair of NZME Board Committees20,000
Membership of NZME Board Committees10,000
Salary
A
Bonus
B
Benefits
C
Total
Michael Boggs806,226336,69934,2881,177,213
Directors’ Remuneration
The fees paid to each Director depends on the duties of the Director, including committee work. Current fees
per annum are as follow:
Chief Executive Officer’s Remuneration
FEES PAID FOR THE YEAR ENDED 31 DECEMBER 2017 (IN $)
Date appointedDate resigned /
retired
Chairman of
the Board
Board
Member
Committee
Chair
Committee
Member
Total
A
Peter Cullinane
B
24 June 2016N /A9,52493,65120,00010,000133,175
Sir John Anderson
C
24 June 20168 December 2017140,476-18,730159,206
Carol Campbell
D
24 June 2016N /A-100,00020,00010,000130,000
David Gibson
E
8 December 2017N /A6,3491,2707,6 19
Total fees paid430,000
(A) 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. (B) Peter Cullinane is a member of the NZME Board, Chair of the Governance &
Remuneration Committee and a member of the Audit & Risk Committee. Following the retirement of Sir John Anderson, Peter Cullinane was also
elected as Chairman of the NZME Board. (C) Sir John Anderson was, up to his retirement, 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) David Gibson is a member of the NZME Board, the Audit & Risk Committee and
the Governance & Remuneration Committee. David will become Chair Governance & Remuneration Committee in 2018.
(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.
Michael Boggs held 141,167 shares in the Company as at 31 December 2017 and earned $10,411 in dividends paid
by the company on shares held by him during the year. In addition to the remuneration disclosed above, as at 22
February 2018, Michael Boggs held 1,119,022 performance rights issued to him under the Group’s Total Incentive
Plan (“TIP”). Please refer to note 4.3 of the Consolidated Financial Statements for a summary of the TIP and the
performance criteria used to determine performance based payments. Under the 2016 TIP, the participants will be
entitled to additional shares (not reflected in the rights above) when the rights are exercised (on 31 December 2019)
for any dividends foregone during the period 1 January 2017 to 31 December 2019. For dividends declared during the
period 1 January 2017 to 31 December 2017, this will result in an additional 53,161 shares being issued to him.

Page 40Page 41
Directors of Subsidiary Companies
As at 31 December 2017, Michael Boggs (CEO) and Sarah Judkins (Chief Strategy Officer & Acting Chief Financial Officer)
were directors of the wholly owned subsidiaries listed in Note 6.2 of the Consolidated Financial Statements, other than
NZME Australia Pty Limited. Michael Boggs and Mark O’Sullivan (a professional director resident in Australia) were
Directors of NZME Australia Pty Limited as at 31 December 2017. Sarah Judkins was also a director of Chinese New
Zealand Herald Limited, Restaurant Hub Limited, Eveve New Zealand Limited and Ratebroker Limited (resigned 3
October 2017) and a trustee of the Auckland Arts Festival. Michael Boggs is also a director of Ratebroker Limited
(appointed 6 October 2017), New Zealand Press Association Limited and a trustee of the Herald Foundation. Other than
Mark O’Sullivan who received $8,624 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.
Employee Remuneration
The Group paid remuneration including benefits in excess of $100,000 to employees (other than directors)
during the year ended 31 December 2017. The salary banding for these employees are disclosed in the following
table (bands with zero number of employees have been excluded):
CORPORATE GOVERNANCE (continued)
Remuneration AmountEmployeesRemuneration AmountEmployees
$100,000 - $110,00068$300,001 - $310,0002
$110,001 - $120,000
59
$310,001 - $320,000
2
$120,001 - $130,000
50
$320,001 - $330,000
6
$130,001 - $140,000
45
$330,001 - $340,000
1
$140,001 - $150,000
28
$340,001 - $350,000
1
$150,001 - $160,000
28
$350,001 - $360,000
3
$160,001 - $170,000
18
$370,001 - $380,000
1
$170,001 - $180,000
12
$380,001 - $390,000
1
$180,001 - $190,000
8
$390,001 - $400,000
1
$190,001 - $200,000
9
$400,001 - $410,000
1
$200,001 - $210,000
4
$410,001 - $420,000
2
$210,001 - $220,000
9
$420,001 - $430,000
1
$220,001 - $230,000
3
$440,001 - $450,000
1
$230,001 - $240,000
6
$450,001 - $460,000
1
$240,001 - $250,000
2
$470,001 - $480,000
2
$250,001 - $260,000
5
$480,001 - $490,000
1
$260,001 - $270,000
4
$540,001 - $550,000
1
$270,001 - $280,000
1
$610,001 - $620,000
1
$280,001 - $290,000
11
$1,170,001 - $1,180,000
1
$290,001 - $300,000
4
Total number of employees that were paid remuneration of $100,000+
404
The remuneration above include all remuneration paid to permanent employees, including fixed remuneration,
employer KiwiSaver contributions, medical aid contributions, bonuses, commission, settlements and redundancies.
PRINCIPLE 6 - RISK
MANAGEMENT
Directors should have a sound
understanding of the material risks
faced by the issuer and how to manage
them. The Board should regularly
verify that the issuer has appropriate
processes that identify and manage
potential and material risks.
Risk Management Framework
The Audit & Risk Committee is
responsible for the oversight and
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
practise 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 risk 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;
· Workplace Health & Safety matters;
· Legal, regulatory and policy compliance;
· Technology and security matters;
· Business continuity planning.
The Group has a Head of Risk, Compliance
and Financial Reporting who is 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.
The Group is a diversified media company
and is subject to diverse types of risk
including, but not limited to cyber
security, 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.

Page 42Page 43
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
Head of Risk, Compliance and Financial Reporting
reports to the NZME Risk Committee and the Audit &
Risk Committee on progress of the implementation of
the Risk Management Framework and Guidelines.
For additional information on financial risks, please also
refer to Note 4.8 of the Consolidated Financial Statements.
Health & Safety
The NZME Board Charter states that the role of the Board
includes ensuring that the Group Health & Safety and
environmental practices and culture comply with legal
requirements, reflects best practice and are recognised
by employees and contractors as key priorities for the
Group. As noted earlier, NZME does not have a separate
Board-level Health & Safety Committee as Health &
Safety is dealt with by the full Board.
Health & Safety is included on the NZME Board Risk
Register. The NZME Annual Health & Safety Plan captures
the projects and objectives for the year to respond to the
identified risks. NZME records and monitors critical Health
& Safety risks in a separate Health & Safety Critical
Risk Register. Currently that register is reviewed and
monitored by the Risk Committee, who meet monthly
and receive and review reporting on Health & Safety
performance, trends and updates, with key matters
and progress against the annual plan being reported
to the Board. In 2017, areas of focus included, for
example, dealing with risks relating to fatigue, traffic
management and public exposure.
Health & Safety advice and direction are overseen
by the Culture and Performance team, a full-time
Health & Safety Advisor and a contracted Health and
a Safety Consultant. NZME utilises the online safety
management system “Vault” as the framework for how
safety is managed within the business. Vault is used
for incident reporting, contractor management, hazard
and risk management, management of hazardous
substances, risk monitoring and reporting.
Worker engagement and involvement is recognised
as an important part of growing a positive workplace
Health & Safety culture. At NZME, being actively
CORPORATE GOVERNANCE (continued)
involved in and contributing to Health & Safety is
included in the GuideMe performance review template
as a KPI for all employees and reviewed as part of the
performance review process. In 2016 and 2017 NZME
rolled out a mandatory safety leadership training
workshops to up-skill all levels of management to
ensure they are aware of NZME’s Health & Safety
obligations, critical risks and the resources available to
satisfy these. To ensure effective worker involvement,
NZME has multiple Health & Safety Committees in
place across New Zealand that actively contribute
to the management of risk and the effectiveness of
controls in place around the business. Health & Safety
performance is communicated throughout all levels
of NZME through regular Senior Leadership team
meetings and internal business communications.
NZME maintains a Wellness & Safety page on its intranet
with sections for Safety at NZME (which includes training
manuals, emergency procedures and safety induction
documents) and a Wellness section (which includes
information about our Employee Assistance Programme,
wellness videos and wellness success stories).
PRINCIPLE 7 - AUDITORS
The Board should ensure the quality and independence
of the external audit process.
Refer to note 2.2.4 of the Consolidated Financial Statements
for fees paid to the auditors, PricewaterhouseCoopers, for
the year ended 31 December 2017.
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. 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 and the Company 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 2017, 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.
The Company requires the external auditor to attend
the Annual Shareholders Meeting (“ASM”) to answer
questions from shareholders in relation to the audit.
The Group’s auditor, PricewaterhouseCoopers,
attended the last ASM on 22 June 2017.
Internal Audit
The Audit & Risk Committee is responsible for reviewing
the integrity and effectiveness of the internal audit
function. NZME operates a co-sourced internal audit
programme that utilises a mix of self-certifications,
scheduled control testing by Group Financial Services,
random assignments and investigations by Risk &
Compliance and a structured internal audit programme
executed by external firms.
Any reporting from external parties are presented to
the Audit & Risk Committee and any significant findings
from other internal activities are reported to the Audit &
Risk Committee in the Risk & Compliance report.
PRINCIPLE 8 - SHAREHOLDER RIGHTS &
RELATIONS
The Board should respect the rights of shareholders
and foster constructive relationships with shareholders
that encourage them to engage with the issuer.
NZME seeks to regularly engage with shareholders to
ensure they are informed about our activities and our
progress against our stated priorities. NZME employs an
Investor Relations Manager to ensure any questions or
feedback from shareholders are responded to promptly.
The NZME website has a dedicated Investor Relations
section containing NZX / ASX announcements,
presentations & webcasts, financial reports, frequently
asked questions and other information that might
be useful to our shareholders. The share registry is
maintained by Link Market Services and their contact
details are available under the Investor Relations
section of the Company’s website. Shareholders can
elect to receive communications electronically.
Following each results announcement, NZME holds
an investor call to present the results and to allow
investors to ask questions. This is followed by an
investor roadshow during which the Chief Executive
Officer and other members of the Executive aim to
meet with as many shareholders as possible.
Shareholders are entitled to exercise their voting
rights as provided for under the applicable legislation
and listing rules.

Page 44Page 45
OTHER STATUTORY INFORMATION
DIRECTORS’ INTEREST IN NZME SHARES
Ordinary shares held by Directors and parties associated with them are as follows:
31 Dec 2017
Number
Sir John Anderson (retired 8 December 2017)
114,286
Carol Campbell
50,000
Peter Cullinane
68,286
DirectorCompanyPosition
Peter CullinaneHT&E LimitedDirector
Lewis Road Creamery LimitedDirector and shareholder
Happy Chickens LimitedDirector
Carol CampbellThe Business Advisory Group LimitedDirector (resigned effective 1 April 2017) and
shareholder (disposed effective 24 May 2017)
New Zealand Post Limited Director
Kiwibank Limited Director
Kingfish Limited Director
Marlin Global Limited Director
Barramundi Limited Director
NPT LimitedDirector
T&G Global LimitedDirector
Ronald McDonald House CharitiesChair (resigned effective 31 August 2017)
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.
DirectorCompanyPosition
David GibsonDG Advisory LimitedDirector and shareholder
Revolutionary Beekeeping Limited Director and shareholder
Eat Shop Do Limited (trading as
Jess’ Underground Kitchen)
Director and shareholder
Hub App LimitedDirector and shareholder
Penguin LimitedDirector and shareholder
Waiheke Brewing Company Limited Director and shareholder
Herbal Investments LimitedShareholder
Lewis Road Creamery LimitedShareholder
Harker Herbal Products LimitedShareholder
Sir John Anderson
(retired 8 December 2017)
NPT LimitedChairman (resigned effective 17 March 2017)
Steel & Tube Holdings LimitedChairman (resigned as Chairman 17 February
2017 and as Director effective 31 March 2017)
T&G Global LimitedDeputy Chairman (resigned 4 December 2017)
The Interests Register also includes, pursuant to section 140(1) of the Companies Act 1993, entries for authorising
the remuneration and particulars of indemnities and insurance for the Directors.
SHAREHOLDER INFORMATION
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 noted below:
Date of substantial
security notice
Number of shares
held
% of shares held
Allan Gray Australia Pty Limited26/10/201623,395,41811.94
Nomura Holdings Inc5/09/20179,883,1575.04
Forager Funds Management Pty Limited19/09/201712,408,4866.33
Auscap Asset Management Limited23/02/201835,000,0001 7.86
The total number of ordinary shares issued by the Company as at 31 December 2017 was 196,011,282. The Company
did not have any other quoted voting products.

Page 46Page 47
Top 20 shareholders
As at 28 February 2017
OTHER STATUTORY INFORMATION (continued)
Number of shares
held
% of shares held
Citicorp Nominees Pty Limited58,959,726 30.08
New Zealand Central Securities Depository Limited33,106,861 16.89
J P Morgan Nominees Australia Limited24,877,882 12.69
HSBC Custody Nominees (Australia) Limited21,480,111 10.96
National Nominees Limited12,233,8216.24
Bond Street Custodians Limited1,702,920 0.87
Pax Pasha Pty Limited1,692,143 0.86
Aust Executor Trustees Limited1,455,281 0.74
FNZ Custodians Limited1,413,000 0.72
Forsyth Barr Custodians Limited1,311,000 0.67
Bnp Paribas Nominees Pty Limited1,222,463 0.62
Australian Executor Trustees Limited1,000,000 0.51
Aet Ct Pty Limited1,000,0000.51
Morgan Stanley Australia Securities (Nominee) Pty Limited 700,188 0.36
Rudie Pty Limited698,427 0.36
Leh Soon Yong538,000 0.27
Goolestan Dinshaw Katrak500,000 0.26
Steven Fahey & Lynette Fahey410,238 0.21
UBS Nominees Pty Limited389,302 0.2
Bnp Paribas Nominees Pty Limited Hub24 Custodial Serv Limited Drp 387,919 0.2
Timothy John Eakin380,000 0.19
Georgina Jane Birrell380,0000.19
Spread of Quoted Security Holders
Range of Securities HeldNumber of
Investors
% of Total
Investors
Shares Held% of Shares
Issued
1 to 1,0003,80763.76 1,041,437 0.53
1,001 to 5,0001,23220.63 2,949,899 1.50
5,001 to 10,0003495.84 2,611,9111.33
10,001 to 100,0005148.61 15,612,212 7.9 6
Above 100,000691.16 173,795,823 88.67
Total5,971100196,011,282100
OTHER INFORMATION
Waivers from the NZX
The Company did not receive any
waivers from any of the NZX Listing
Rules during the year.
Donations
In accordance with section 211(1)(h)
of the Companies Act 1993, NZME
notes that the Group made donations
of $16,060 during the year ended 31
December 2017.
Credit rating
As at the date of this Annual Report,
NZME did not have a credit rating.
Exercise of NZX disciplinary powers
For the year ended 31 December 2017, 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.
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 2017,
none of the Directors were appointed
pursuant to Rule 3.3.8.

Page 49
CONSOLIDATED
FINANCIAL
STATEMENTS
For the year ended
31 December 2017

Page 50Page 51
CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2017
Directors’ Statement
51
Consolidated Income Statement
52
Consolidated Statement of Comprehensive Income
53
Consolidated Balance Sheet
54
Consolidated Statement of Changes in Equity
55
Consolidated Statement of Cash Flows
56
Notes to the Consolidated Financial Statements*
Basis of Preparation
57
Group Performance
59
Operating Assets and Liabilities
65
Capital Management
74
Taxation
86
Group Structure and Investments in Other Entities
89
Other Notes
94
Independent Auditor’s Report
97
*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 is also included under the Basis of
Preparation section on pages 57 to 58.
DIRECTORS’ STATEMENT
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 2017, 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 2017 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 50 to 96 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
Peter Cullinane
Director
Carol Campbell
Director
Date: 21 February 2018

Page 52Page 53
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2017
NOTE
2017
$’000
2016
$’000
CONTINUING OPERATIONS
Revenue2.1
390,688
4 07,8 5 6
Finance and other income 2.1
926
2,340
Total revenue and other income
2.1
391,614
410,196
Expenses from operations before finance costs, depreciation,
amortisation
2.2.1
(332,839)
(363,553)
Depreciation & amortisation2.2.2
(24,946)
(23,845)
Finance costs2.2.3
(4,497)
(9,300)
Profit / (loss) from continuing operations before income tax
expense
29,332
13,498
Income tax expense5.1
(8,447)
(64,050)
Profit / (loss) from continuing operations for the year20,885
(50,552)
DISCONTINUED OPERATIONS
Profit / (loss) after tax from discontinued operations
-
125,095
Profit / (loss) for the year

20,885
74,54 3
PROFIT / (LOSS) FOR THE YEAR IS ATTRIBUTABLE TO:
Owners of the Company
20,885
60,618
Non-controlling interests
-
13,925
Profit / (loss) for the year

20,885
74,54 3
NOTE
CENTS
CENTS
Earnings per share from continuing operations
attributable to the ordinary shareholders of the company
Basic / diluted earnings per share2.3
1 0.7
(28.0)
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
1 0.7
30.9
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.
NOTE
2017
$’000
2016
$’000
Profit for the year20,885
74,543
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations4.2
(15)
44,846
Items that will not be reclassified to profit or loss
Exchange and other differences applicable
to non-controlling interests
-
(14,683)
Other comprehensive income, net of tax(15)
30,163
Total comprehensive income20,870
104,706
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company
20,870
105,464
Non-controlling interests
-
(758)
20,870
104,706
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS
OF THE COMPANY:
Continuing operations
20,870
(10,038)
Discontinued operations
-
115,502
20,870
105,464
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2017

Page 54Page 55
NOTE
2017
$’000
2016
$’000
CURRENT ASSETS
Cash and cash equivalents4.7
9,570
16,242
Trade and other receivables3.3
55,323
53,631
Inventories
1,926
2,226
Total current assets66,819
72,099
NON-CURRENT ASSETS
Intangible assets3.1
330,553
329,776
Property, plant and equipment3.2
64,725
75,677
Other financial assets6.3.2
5,988
5,988
Total non-current assets401,266
411,441
Total assets468,085
483,540
CURRENT LIABILITIES
Trade and other payables3.4
56,894
66,379
Current tax provision
7, 5 6 7
2,800
Total current liabilities64,461
69,179
NON-CURRENT LIABILITIES
Trade and other payables3.4
13,565
13,423
Interest bearing liabilities4.5
99,78 8
112,168
Deferred tax liabilities5.2
1,239
3,211
Total non-current liabilities114,592
128,802
Total liabilities179,053
197,9 8 1
Net assets289,032
285,559
EQUITY
Share capital4.1
360,363
360,363
Reserves4.2
2,385
(5,198)
Retained earnings
(73,716)
(69,606)
Total equity289,032
285,559
CONSOLIDATED BALANCE SHEET
as at 31 December 2017
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.
— Attributable to owners of the Company —
NOTESHARE
CAPITAL
$’000
RESERVES
$’000
RETAINED
EARNINGS
$’000
TOTAL
$’000
NON-CON-
TROLLING
INTERESTS
$’000
TOTAL
EQUITY
$’000
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)
104,706
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 expense4.2-144-
144
-
144
Acquisitions and
divestments of subsidiaries and
operations
--(51,886)
(51,886)
(197,481)
(249,367 )
Balance at
31 December 2016
360,363(5,198)(69,606)
285,559
-
285,559
BALANCE AT 1 JANUARY 2017
360,363(5,198)(69,606)
285,559
-
285,559
Profit for the year--20,885
20,885
-
20,885
Other comprehensive
income
-(15)-
(15)
-
(15)
TOTAL COMPREHENSIVE
INCOME
-(15)20,885
20,870
-
20,870
Dividends paid4.4--(18,622)
(18,622)
-
(18,622)
Supplementary dividends paid4.4--(2,785)
(2,785)
-
(2,785)
Tax credit on supplementary
dividends
--2,785
2 ,78 5
-
2 ,78 5
Transfer from transaction with
non-controlling interest reserve
4.2-6,373(6,373)
-
-
-
Share based payments expense4.2-1,225-
1,225
-
1,225
Balance at
31 December 2017
360,3632,385(73,716)
289,032
-
289,032
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 2017

Page 56Page 57
NOTE
2017
$’000
2016
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
3 8 7, 2 2 8
581,485
Payments to suppliers and employees
(336,626)
(488,558)
Dividends received
128
141
Interest received
139
223
Interest paid
(5,804)
(8,811)
Income taxes paid
(5,610)
(22,798)
Net cash inflows / (outflows) from operating activities
4.7
39,455
61,682
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(4,881)
(11,549)
Payments for intangible assets including software
(10,165)
(4,407)
Proceeds from sale of property, plant and equipment
27
2,251
Proceeds from divestment of subsidiaries, net of their cash, as part of
internal restructure
-
95,936
Payments for investment in other entities
-
(848)
Net loans repaid / (advanced) to other entities
-
2,278
Net cash inflows / (outflows) from investing activities(15,019)
83,661
CASH FLOWS FROM FINANCING ACTIVITIES
Loans advanced / (repaid) by related parties
-
(55,958)
Proceeds from borrowings4.5
84,000
54,000
Repayments of borrowings4.5
(96,486)
(127,242)
Payments for borrowing cost
-
(400)
Dividends paid to Company’s shareholders
(18,622)
(6,860)
Net payments to non-controlling interests
-
(3,630)
Net cash inflows / (outflows) from financing activities(31,108)
(140, 090)
Net increase / (decrease) in cash and cash equivalents(6,672)
5,253
Cash and cash equivalents at beginning of the year
16,242
11,065
Effect of exchange rate changes
-
(76)
Cash and cash equivalents at end of the year
4.7
9,570
16,242
The Consolidated Statement of Cash Flows includes cash flows from continuing and discontinued operations.
Refer to Note 6.1 and the Consolidated Financial Statements for the year ended 31 December 2016 (available on
the Company’s website) 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.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2017
1.1 REPORTING ENTITY AND
STATUTORY BASE
NZME Limited (NZX and ASX:NZM) 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 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 relevant note. These
policies have been consistently applied to
all the years presented, unless otherwise
stated. These consolidated financial
statements are presented for the Group
and were approved for issue by the Board
of Directors on 21 February 2018.
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.
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.
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. In the statement
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.0 BASIS OF PREPARATION

Page 58Page 59
actual results and are reviewed on an
ongoing basis. A list of those areas of
significant estimation or judgement
and a reference to the notes containing
further information is provided below:
1.4 SIGNIFICANT CHANGES
1.4.1 Demerger from APN News &
Media Limited (now HT&E Limited)
and tax settlement in the prior year
The Company completed its demerger
from APN News & Media Limited
(subsequently rebranded as HT&E Limited
(“HT&E)) on 29 June 2016, marking the
creation of a standalone New Zealand
Group focused on the operation of
an integrated print, radio and digital
media and entertainment business. On
23 June 2016, the Company and HT&E
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. The demerger and tax settlement
had a significant impact on the audited
consolidated financial statements for
the year ended 31 December 2016 as
shown in the comparatives to these
consolidated financial statements. The
demerger and the tax settlement did
not have a material impact on the year
ended 31 December 2017. Detailed
notes regarding the demerger and the tax
settlement are included in the audited
consolidated financial statements for
the year ended 31 December 2016
available on the Company’s website.
Also refer to note 6.1 of these
consolidated financial statements.
1.4.2 Proposed Merger with Stuff Limited
On 7 September 2016 the Company
and Fairfax Media Limited (“Fairfax”)
announced the signing of a merger
implementation agreement to effect
the merger of the Company and Stuff
Limited,formerly Fairfax New Zealand
Limited, (“Stuff”).
The New Zealand Commerce Commission
(“NZCC”) declined to grant clearance or
authorisation for the proposed merger of
the Company with Stuff on 3 May 2017.
On 26 May 2017 the Company, Fairfax and
Stuff announced that they would appeal
the NZCC’s decision in the High Court.
A nine day hearing was held in October
2017 and on 19 December 2017 we
announced that the High Court has
upheld the NZCC’s decision not to clear
or authorise the proposed merger. The
Company, Fairfax and Stuff have now
applied for leave to appeal the High
Court decision upholding the NZCC’s
decision not to clear or authorise the
proposed merger of the two businesses.
Areas of significant accounting
estimates or judgements
Note
Impact of Performance Rights
on earnings per share
2.3
Determination of number of
reportable segments
2.4
Intangible assets with indefinite
useful lives
3.1
Assumptions used in testing
for impairment of indefinite
life intangible assets
3.1.1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2017
$’000
2016
$’000
FROM CONTINUING OPERATIONS
Advertising revenue
279,095
295,141
Circulation and subscription revenue
83,263
86,782
Services revenue
12,542
12,206
Other revenue
1 5,78 8
13,727
Revenue from continuing operations 390,688
4 07,8 5 6
Dividends
128
141
Rental income from sub-leases
632
586
Profit / (loss) on disposal of properties and businesses
-
1,320
Profit / (loss) on disposal of property, plant and equipment
27
-
Other income787
2,047
Interest income – related parties
-
91
Interest income – other entities
139
202
Finance income139
293
Total finance and other income 926
2,340
Total revenue and other income 391,614
410,196
FROM DISCONTINUED OPERATIONS (REFER TO NOTE 6.1)
Total revenue and other income-
127,542
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.0 GROUP PERFORMANCE
2.1 REVENUE AND OTHER INCOME
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 and digital design and is
recognised when the event occurs, the product is delivered or the goods are sold.

Page 60Page 61
2017
$’000
2016
$’000
FROM CONTINUING OPERATIONS
Employee benefits expense
157,350
161,610
Production and distribution expense
75,045
82,301
Selling and marketing expense
47,569
45,840
Rental and occupancy expense
21,986
23,711
Masthead license fees
-
12,216
Costs in relation to one-off projects
2,970
6,946
Redundancies and associated costs
4,314
6,009
Asset write-downs and business closures
275
-
Repairs and maintenance costs
6,973
6,166
Travel and entertainment costs
4 ,1 8 0
4,086
Other
12,177
14,668
Total expenses from operations before finance costs,
depreciation, amortisation
332,839
363,553
2017
$’000
2016
$’000
2.2.2 Depreciation & amortisation
FROM CONTINUING OPERATIONS
Depreciation
15,559
16,173
Amortisation
9,387
7,67 2
Total depreciation & amortisation24,946
23,845
2.2.3 Finance cost
FROM CONTINUING OPERATIONS
Interest and finance charges – related parties
-
2,765
Interest and finance charges – other entities
4,391
6,482
Borrowing cost amortisation
106
53
Total finance cost4,497
9,300
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.2 EXPENSES
2.2.1 Expenses from operations before finance costs, depreciation, amortisation
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2017
$’000
2016
$’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
368
454
Other services
Other assurance services
B
51
6
Tax services
C
109
1,057
Other services
D
125
1,231
Total other services285
2,294
Total fees paid to auditors653
2,748
(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 and payroll assurance. (C) Includes services relating
to transactional advice, tax compliance services, tax pooling services (2016 only) and services relating to the IRD settlement (2016 only).
(D) Includes due diligence and advisory services relating to the proposed merger with Stuff Limited of $124,941 (2016: $1,224,179).

Page 62Page 63
2.3 EARNINGS PER SHARE
2017
$’000
2016
$’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
20,885
(54,884)
Profit from discontinuing operations attributable to owners of the parent entity
-
115,502
Profit / (Loss) attributable to owners of the parent entity used in calculating EPS20,885
60,618
2017
NUMBER
2016
NUMBER
WEIGHTED AVERAGE NUMBER OF SHARES
Weighted average number of shares in the denominator in calculating basic EPS
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
2017
CENTS
2016
CENTS
BASIC / DILUTED EARNINGS PER SHARE
From continuing operations attributable to owners of the parent entity
1 0.7
(28.0)
From discontinuing operations attributable to owners of the parent entity
-
58.9
Total basic / diluted earnings per share attributable to owners of the parent entity1 0.7
30.9
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, for the 2017 TIP, will at the discretion of the Board either convert into
fully paid ordinary shares or be settled in cash; and for the 2016 TIP, will convert into fully paid ordinary
shares. Under the TIP, where Performance Rights are settled in shares, 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 either
repurchase shares from the market or settle the rights in cash and not to issue new shares.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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 2017 (2016: 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.
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 STATEMENTS
2.4 SEGMENT INFORMATION
2.4.1 Determination and description of segments
Integrated Media and Entertainment incorporates the sale of advertising, goods and services generated from
the audiences attached to the Group’s media platforms.

Page 64Page 65
2017
$’000
2016
$’000
REVENUES FROM EXTERNAL CUSTOMERS BY CHANNEL
Print
221,319
239,127
Radio & Experiential
110,071
114,849
Digital & e-Commerce
56,327
52,153
Segment revenue from integrated media and entertainment activities387,717
406,129
Revenue from shared service centre
2,971
1,727
Total revenues from external customers390,688
4 07,8 5 6
Dividend income
128
141
Rental income from sub-leases
632
586
Expenses from operations before finance costs, depreciation,
amortisation and exceptional items
(325,280)
(338,382)
Total Segment Adjusted EBITDA
A
6 6 ,1 6 8
70,201
Depreciation and amortisation
(24,946)
(23,845)
Interest income
139
293
Finance cost
(4,497)
(9,300)
EXCEPTIONAL ITEMS
Gain / (loss) on disposal of properties and businesses
B
(248)
1,320
Masthead royalty charges
C
-
(12,216)
Redundancies and associated costs
D
(4,314)
(6,009)
Costs in relation to one off projects
E
(2,970)
(6,946)
Profit / (Loss) before tax from continuing operations29,332
13,498
2.4.2 Segment revenues and results
The segment information provided to the Directors and Executive Team for the year ended 31 December 2017
is as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(A) Adjusted Earnings before Interest, Tax, Depreciation and Amortisation (“Adjusted EBITDA”) from continuing operations which excludes exceptional
items, is a non-GAAP measure that represents the Group’s total segment result which is regularly monitored by the Chief Operating Decision Maker.
Exceptional items are those gains, losses, income and expense items that are not directly related to the primary business activities of the Group
which are determined in accordance with the NZME Exceptional Items Recognition Framework adopted by the Audit & Risk Committee. Exceptional
items include redundancies, impairment, one-off projects and the disposal of properties or businesses. These items are excluded from the segment
result that is regularly reviewed by the Chief Operating Decision Maker. (B) Gain / (loss) on disposal of properties and businesses is the loss on sale of
land in Ouruhia and Greymouth in 2017 and the gain on sale of the Wairarapa Times Age, Whakatane News offset by loss on sale of property in Nelson
in 2016. (C) Costs charged from a subsidiary company of HT&E for use of NZ publishing mastheads in 2016. On 24 June 2016, the Group acquired
certain NZ publishing mastheads on normal commercial terms from this subsidiary company of HT&E. 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 proposed merger
with Stuff and the continuing integration and co-location of NZME. In 2016 this also included costs relating to listing.
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.
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
AS AT 1 JANUARY 2016
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
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
Divestment of subsidiaries
and operations
B
(10,804)--(390,454)-
(401,258)
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.0 OPERATING ASSETS & LIABILITIES
3.1 INTANGIBLE ASSETS
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.

Page 66Page 67
GOODWILL
$’000
SOFTWARE
$’000
MASTHEAD
BRANDS
$’000
RADIO
LICENCES
$’000
BRANDS
$’000
TOTAL
$’000
FOR THE YEAR ENDED 31 DECEMBER 2017
Opening net book amount70,78310,870146,97642,06859,079
329,776
Additions-1,932-90-
2,022
Amortisation-(6,434)-(2,953)-
(9,387)
Transfers and other adjustments
C
-8,142---
8,142
Net book value
70,78314,510146,97639,20559,079
330,553
AS AT 31 DECEMBER 2017
Cost166,39759,384146,9767 7, 54759,079
509,383
Accumulated amortisation
and impairment
(95,614)(44,874 )-(38,342)-
(178,830)
Net book value
70,78314,510146,97639,20559,079
330,553
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(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 (now HT&E Limited (“HT&E”)). 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 HT&E. (B) The Company completed its demerger from HT&E on 29 June 2016. Refer to Note 6.1 and
the Consolidated Financial Statements for the year ended 31 December 2016 (available on the Company’s website) for further details around assets
disposed and acquired as part of the Internal Restructure. (C) Included in plant and equipment is capitalised work in progress which is transferred to
the relevant asset category (including software) once the project is complete (refer to note 3.2). Transfers and other adjustments primarily comprise
of transfers from work in progress during the year.
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 initially recognised at cost.
The current New Zealand radio licences expire on 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 initially recognised at cost. The Directors believe the
masthead brands have indefinite lives as there is no foreseeable limit over which they 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).
Brands
Brands are accounted for as identifiable assets and are initially recognised 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).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.1.1 Year-end impairment review
Significant Judgement
As disclosed in note 2.4 the Directors have determined that 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.
A comprehensive impairment review was conducted at 31 December 2017. 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.
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 and
include cash flow assumptions for new digital ventures being launched in 2018.
· 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.
2017
Post-tax
discount rate
2017
Long-term
growth rate
2016
Post-tax
discount rate
2016
Long-term
growth rate
Integrated Media and Entertainment CGU
9.5%0%
9.5%0%
3.1.2 Impact of reasonably possible
change in key assumptions
The forecasts used in impairment testing
require assumptions and judgements
about the future, such as discount rates,
long term growth rates, forecasted print
and digital revenues, to which the model
is sensitive and which are inherently
uncertain. Given these uncertainties,
the Group has adopted a valuation
approach based on scenario analysis
for those scenarios that it considers to
be reasonably likely to occur. Based on
all available information, the directors do
not consider there to be any reasonably
possible change in the key assumptions
that would cause impairment. Accordingly,
based on the annual impairment assessment
performed, there is no impairment.

Page 68Page 69
Accounting 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 STATEMENTS
FREEHOLD
LAND
B
$’000
BUILDINGS
B
$’000
PLANT AND
EQUIPMENT
C
$’000
TOTAL
$’000
AS AT 1 JANUARY 2016
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
(Footnotes on the next page)
3.2 PROPERTY, PLANT AND EQUIPMENT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FREEHOLD
LAND
B
$’000
BUILDINGS
B
$’000
PLANT AND
EQUIPMENT
C
$’000
TOTAL
$’000
AS AT 31 DECEMBER 2016
Cost or fair value1,38114,562336,730
352,673
Accumulated depreciation and impairment-(2,217)(274,779)
(276,996)
Net book amount
1,38112,34561,951
75,677
YEAR ENDED 31 DECEMBER 2017
Opening net book amount1,38112,34561,951
75,677
Additions-27312,759
13,032
Disposals(216)(8)(60)
(284)
Depreciation-(2,302)(13,257)
(15,559)
Transfers and other adjustments
C
-(29)(8,112)
(8,141)
Net book amount
1,16510,27953,281
64,725
AS AT 31 DECEMBER 2017
Cost or fair value1,16514,764338,715
354,644
Accumulated depreciation and impairment-(4,485)(285,434)
(289,919)
Net book amount
1,16510,27953,281
64,725
(A) The Company completed its demerger from APN News & Media Limited (now HT&E Limited (“HT&E”)) on 29 June 2016. Refer to Note 6.1 and the
Consolidated Financial Statements for the year ended 31 December 2016 (available on the Company’s website) for further details around assets
disposed and acquired as part of the Internal Restructure. (B) Freehold land and buildings include leasehold improvements with a net book value of
$9,901,993 (2016: $11,942,062) carried at cost. All other 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 $442,270 (2016: $658,270) and the net book
value of buildings would have been $336,973 (2016: $347,504). 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 $8,149,802 (2016: $7,285,650) 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. Work in progress is not depreciated until the asset is completed.

Page 70Page 71
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:
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 (excluding leasehold improvements) are recorded 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, furniture and fittings and motor vehicles are 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Furniture and fittings3 to 25 years
Buildings10 to 25 years
Leasehold improvements3 to 25 years
Motor vehicles5 to 10 years
Plant & equipment3 to 25 years
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2017
$’000
2016
$’000
Trade receivables
44,811
45,043
Provision for impairment
(592)
(1,042)
44,219
44,001
Amounts due from related companies (note 7.1.2)
1,028
750
Other receivables and prepayments
10,076
8,880
Total current trade and other receivables55,323
53,631
Movements in the provision for impairment are as follows:
Balance at beginning of the year
1,042
2,146
Provision for impairment expense
430
596
Receivables written off
(880)
(1,700)
Provision for impairment592
1,042
3.3 TRADE AND OTHER RECEIVABLES
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. 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.