Annual Shareholder Meeting Presentation and Address

12 June 2019
Annual Shareholders
Meeting

Peter Cullinane
INDEPENDENT CHAIR
WELCOME
3

AGENDA
4
01 Chairperson’s Address
02 Chief Executive Officer’s Address
03 Ordinary Resolutions
1. Election of Director
2. Auditor’s Remuneration
04 Special Resolution
3. Amendment of Constitution
05 General Business

NZME’S AUDIENCE REACH
IS 3.3 MILLION
1
80% OF NEW ZEALANDERS
PRINT
1.3 million
Weekly Readers
1
RADIO
2.0 million
Weekly Listeners
2
DIGITAL
2.5 million
per Month
1
(1) Nielsen CMI March 2019 Fused Q1 18 –Q4 18 (population 10+ years).
(2) GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience T1 2019.
5

THE NZME
BOARD
Peter Cullinane
IndependentChair
CarolCampbell
IndependentDirector
David Gibson
IndependentDirector
Barbara Chapman
IndependentDirector
SussanTurner
IndependentDirector
6

THE NZME
EXECUTIVE TEAM
Michael Boggs
ChiefExecutiveOfficer
David Mackrell
Chief Financial Officer
Laura Maxwell
ChiefDigital Officer
MattHeadland
ChiefCommercial Officer
ShayneCurrie
ManagingEditor
Dean Buchanan
Group Director,
Entertainment
AllisonWhitney
General Counsel&
Company Secretary
MatthewWilson
ChiefOperationsOfficer
KatieMills
ChiefMarketing Officer
7

New Zealand Media and
Entertainment is built on a
legacy of award-winning
journalism and broadcasting.
We deliver news, entertainment,
and information to Kiwis every
day.
8

9
Amplifying our ability to create positive
change in our society
•Committed to a sustainable business focused on our People,
our Environment and our Communities
•Materiality matrix of sustainability issues directly affecting
NZME completed
•UN Sustainable Development Goals framework adopted to
provide a measurement and reporting regime
•A CSR Framework and measurements will be reported for
the 2020 financial year
Corporate Social
Responsibility

•Supports long term strategic objectives and operational
priorities to maximise shareholder value.
•Reduce gearing, maintaining investment in our growth
opportunities and continuing to pay dividend where trading
and investment conditions permit.
•Consistent with the policy, the Board elected not to declare a
final dividend with respect to the 2018 financial year.
•Target reduction in net debt of $10-15 million per annum until
such time as the leverage ratio is within our target range of
1.0 –1.5 times rolling 12-month Trading EBITDA.
•Subject to achieving annual debt reduction targets, and
having regard to NZME’s capital requirements, operating
performance, financial position and cash flow at the time,
NZME intends to pay dividends of 30 –50% of reported
NPAT.
10
Capital
Management

Michael Boggs
CHIEF EXECUTIVE OFFICER
11

StatutoryNPAT
$11.6m
2017 $20.9m 44%
NZME 2018
RESULTS SUMMARY
Trading Revenue
1
$378.4m
2017 $387.7m 2%
Trading EBITDA
1
$54.7m
2017 $66.2m 17%
Trading Earnings
Per Share
1
9.6cps
2017 $13.6cps 29%
Trading NPAT
1
$18.9m
2017 $26.7m 29%
FinalDividend
nil
2018 totaldividends
2 centsper share
Pro-activeinvestment
in Digital Classifieds
Agencymarket
headwinds
(1) Trading measures used throughout this presentation are non-GAAP measures that are explained and reconciled
on pages 34 and 35 of the NZME Full Year 2018 Results Presentation available on the Company’s website.
Resultsimpactedby
12

(1) Trading measures used throughout this Annual Report are non-GAAP measures that are explained and reconciled on pages 34
and 35 of the NZME Full Year 2018 Results Presentation available on the Company’s website.
TRADING REVENUE
$211.6 m
-4% vs 2017FY2018
TRADING REVENUE
$106.8 m
-3% vs 2017FY2018
TRADING REVENUE
$60.0 m
+6% vs 2017FY2018
1.PwC Radio Advertising Benchmark Report, April 2019
NZMEPRINTNZMERADIONZMEDIGITAL
& eCOMMERCE
•Printadvertising revenue $114.2m
(down 6% vs 2017)
•Circulation revenue $81.5m (down
2% vs 2017)
•Maintained our share of radio
advertising market revenue
1
•Positive trends in radio advertising
revenue in FY19
•Long-term driver of growth
13

2019 STRATEGIC PRIORITIES
FOCUSED ON GROWTH
Leadingthe futureof news and
journalismin New Zealand
Increasingradio capability
and performance
Creating New Zealand’s leading
real estate platform
14

Key success metrics
Paid content launch Q2
2019
Targeting 10,000 digital
subscribers within the
first year
Increased premium
content and digital
audience engagement
Improved print
subscriber retention
1NEWS
LEADING THE FUTURE OF
NEWS AND JOURNALISM
IN NEW ZEALAND
Results to date
•NZ Herald Premium launched in April 2019
•10,000 digital subscribers, of which over
35% have opted for an annual subscription
•20% of existing 5+day print subscribers have
activated their online access
NZ Herald –Best Daily Newspaper
“A number of excellent news breaks, and a
quality production across all sections.”
Viva –Best Magazine
“An intelligent and professionally put-together
magazine section that has its readers in sharp
focus and keeps them engaged and entertained
... its fresh design and digital platforms were a
standout”
FY19 Focus
New Zealand’s
destination for trusted
premium news content
Launch digital
subscriptions
Enhancing print
subscriber value
proposition
15

Key success metrics
Radio revenue in growth
Improved audience
share in the key 18-54
demographic
Continue to grow iHeart
registered users and
streaming hours
2RADIO
INCREASING RADIO CAPABILITY AND
PERFORMANCE
Results to date
•Radio revenue in growth overall at the end
of Q1
•Weekly audience of 2 million New
Zealanders and increased market share
across all markets
1
•NewstalkZBremains the number one
radio breakfast show in New Zealand
2
•Newshows on other channels are proving
successful, including:
•NewstalkZBafternoons
•NewstalkZBDrive Show
•The Hits with Laura, Sam & Toni
•ZM with Bree & Clint
•Coast with Bernie & Jason
•iHeartregistered users ~870,000, up 15%
YoY
1
•iHeartstreaming hours 3.5 million, up 6%
YoY
2
FY19 Focus
Enhance radio sales
skills to support
integrated selling
Digital audience and
revenue growth
leveraging iHeart
capability
Successfully develop an
engaged following for
new shows
(1)GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience T1 2019
(2)GfK Radio Audience Measurement, Commercial Stations, M-F 6am-9am, Cumulative Audience T1 2019
(3)iHeartMedia; Adobe Analytics, April 2019
(4)AdsWhizz and StreamGuys, April 2019
16

Key success metrics
Growth in listings as a
% of market
Improved audience
listings engagement
Meaningful revenue
growth
CREATING NEW ZEALAND’S LEADING
REAL ESTATE PLATFORM
Results to date
•Celebrated one year of OneRoof in March
2019
•New Homes category launch scheduled
for Q3
•Launched new user features:
oCreate and share Saved Property lists
oImproved open home planner
oOneRoofQuarterly Property Report
•Reaching up to 348,000 unique browsers
each week
•Revenue growth continues
FY19 Focus
Secure further market
listings and launch new
property categories (e.g.
new homes)
Continue to develop user
features and tools to
enhance listings
engagement
Lead property market
commentary and insights
Continue revenue growth
through premium listings
and agent products
17

•The successful launch of NZ Herald premium digital
subscriptions has exceeded our revenue expectations.
•OneRoofnow has 70% of residential property listings with
continued revenue growth momentum.
•Advertising bookings year to date are tracking 3% below
last year but have declined at a slower rate than full year
2018, with radio revenue in growth.
•Declines in the Agency market continue, impacting digital
revenues, however the market is now showing early signs
of an improving trend compared to the same period last
year.
•Our focus on cost reductions have continued with initiatives
delivering improvement in the underlying cost base.
•The company is on target to reduce debt in line with our
Capital Management Policy.
18
Trading Update

1
9

RESOLUTIONS
20

To consider and, if thought fit, to pass the following ordinary
resolution:
Resolution 1: Election of Director
It is hereby resolved, as an ordinary resolution, that Sussan
Turner, who joined the board after the last Annual
Shareholders’ Meeting, be elected as a Director of NZME.
ORDINARY RESOLUTIONS
Resolution 1
Proxies & Postal
votes received
ForAgainstDiscretionaryAbstain
Number of shares voted
by proxy or postal vote
78,264,2894,2882,820,540844,390
21

To consider and, if thought fit, to pass the following ordinary
resolution:
Resolution 2: Auditor’s remuneration
It is hereby resolved, as an ordinary resolution, that the
Directors of NZME are authorised to fix the auditor’s
remuneration.
ORDINARY RESOLUTIONS
Resolution 2
22
Proxies & Postal
votes received
ForAgainstDiscretionaryAbstain
Number of shares voted
by proxy or postal vote
78,266,56122,5162,810,040834,390

To consider and, if thought fit, to pass the following special
resolution:
Resolution 3: Amendment of Constitution
To amend NZME’s constitution in the form and manner
described in the explanatory notes, with effect from the close of
the Annual Shareholders’ Meeting.
SPECIAL RESOLUTION
Resolution 3
23
Proxies & Postal
votes received
ForAgainstDiscretionaryAbstain
Number of shares voted
by proxy or postal vote
77,960,05726,2392,820,0401,127,171

GENERAL
BUSINESS
24

DISCLAIMER
The information in this
presentation is of a general
nature and does not constitute
financial product advice,
investment advice or any
recommendation. Nothing in
this presentation constitutes
legal, financial, tax or other
advice. This presentation
constitutes summary
information only, and you
should not rely on it in
isolation from the full detail
set out in NZME’s Consolidated
Financial Statements for the
year ended 31 December 2018.
This presentation may contain projections
or forward-looking statements regarding a
variety of items. Such projections or
forward-looking statements are based on
current expectations, estimates and
assumptions and are subject to a number
of risks and uncertainties. There is no
assurance that results contemplated in any
projections or forward looking statements
in this presentation will be realised. Actual
results may differ materially from those
projected in this presentation. No person is
under any obligation to update this
presentation at any time after its release to
you or to provide you with further
information about NZME Limited.
While reasonable care has been taken in
compiling this presentation, none of NZME
Limited nor its subsidiaries, directors,
employees, agents or advisers (to the
maximum extent permitted by law) gives
any warranty or representation (express or
implied) as to the accuracy, completeness
or reliability of the information contained in
it nor takes any responsibility for it. The
information in this presentation has not
been, and will not be, independently
verified or audited.
25

---

*Source: Nielsen CMI March 2019 Fused Q1 18 – Q4 18 (population 10+ years). Based on unduplicated weekly reach
of NZME newspapers, claimed 7 day radio stations, and monthly domestic unique audience of NZME’s digital channels.


MARKET ANNOUNCEMENT


12 June 2019


Annual Shareholders’ Meeting - Addresses


AUCKLAND, 12 JUNE 2019: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) attaches the
Chairman’s and CEO’s addresses, and presentation which will be delivered at the Annual
Shareholders’ Meeting being held in the NZME iHeart Lounge in Auckland today, commencing
at 2:00pm (NZT).

ENDS

For further information:

Julia Belk
Investor Relations Manager
NZME
T: +64 21 2408997
Email: julia.belk@nzme.co.nz



About NZME

NZME is a leading New Zealand media and entertainment business that reaches more than 3.3 million Kiwis*.
Whether reading, listening, or watching, our audience gets the content they want - where and when they want
it. NZME offers advertisers a unique opportunity to access its growing audience via a fully integrated multi-
platform presence. NZME is listed on the NZX Main Board (code NZM) with a foreign exempt listing on the ASX
(code NZM).

www.nzme.co.nz

2




NZME ANNUAL SHAREHOLDERS’ MEETING, 12 JUNE 2019

Order of Events & Script

PLEASE NOTE: this script is to be read in conjunction with the Annual Shareholders’ Meeting
Presentation dated 12 June 2019.


NZME FIND YOUR VOICE SHOWCASE VIDEO


SLIDE 3 – Chairman Photo

FORMALITIES & CHAIR’S ADDRESS: PETER CULLINANE

E ngaa rangatira, teenaa koutou, teenaa koutou, teenaa koutou katoa.
Kia ora, huihui mai taatou.
He rangatira koutou, e tika ana, kia koorero i te reo rangatira, ki a koutou.
He timatanga tenei.
Ko te tumanako, ka tipu te reo rangatira i tenei whare, aa toona waa, ka koorero Maori taatou
katoa.

Ahakoa he timatanga.
Ahakoa he iti, he pounamu

It’s wonderful to be gathered today.
You are all leaders and chiefs and therefore its appropriate I greet you in our chiefly language.
This is a start.
The hope is that te reo maori will thrive here and we will all understand maori.
Even though it’s just a start.
Although it is small it is precious.

Hello and welcome to NZME’s 2019 Annual Shareholders’ Meeting, my name is Peter Cullinane,
Chair of the NZME Board.

Before we begin, I have a few housekeeping matters to run through. In the event of a fire
alarm, please exit through the door just to my left and gather in the western courtyard.
Restrooms are located to the left of the lifts in the foyer.

Today is a meeting of shareholders and only those shareholders with official registration cards
are permitted to speak or ask questions at this meeting. Shareholders will be given an
opportunity to comment and ask questions prior to voting on each resolution, as well as during
the general business section of the meeting. If you are a shareholder and you do not have a
card, please see the registration desk. Finally, please ensure that your phones are on silent.

Today’s audio and presentation are being webcast for those who are unable to attend in
person. There will also be a recording of today’s meeting made available on our website
following the conclusion of the meeting.

3

The Company Secretary has confirmed to me that the Notice of Meeting has been sent to
shareholders and other persons entitled to receive it. The Company's constitution prescribes
a quorum of three shareholders. As you can see, this requirement has been met, therefore I
now declare this meeting open.

Firstly, I would like to introduce those seated up the front with me today, from your left to
right; our General Counsel and Company Secretary Allison Whitney, Chief Executive Officer
Michael Boggs, and my fellow Board members, Sussan Turner, Barbara Chapman, David
Gibson and Carol Campbell.

Our legal advisors, Chapman Tripp, and our auditors, PwC, are also in attendance today and
available to answer shareholder questions.

I’d like to thank shareholders for participating in today’s meeting.

SLIDE 4 – Agenda

Following my opening comments, we will hear from NZME’s CEO Michael Boggs. We will then
proceed to voting on the resolutions as set out in the Notice of Meeting. These are:

• An ordinary resolution to elect Sussan Turner to the Board;
• An ordinary resolution authorising the Board to fix the remuneration of our auditors,
PwC; and
• A special resolution authorising procedural amendments to the Company’s constitution.

As Chairman of this meeting I intend to vote all discretionary proxies that we have received in
favour of these resolutions.

SLIDE 5 – Propeller Business Model

New Zealand Media and Entertainment is a fully integrated, audience-centric, media business,
across print, radio and digital channels.

For audiences and advertisers NZME boasts an impressive portfolio of brands, delivering
premium News, Sport and Entertainment content. We are uniquely positioned to connect
advertisers with their customers.

NZME’s audience of 3.3 million New Zealanders
1
represents almost 80% of the New Zealand
population, and remains a key driver of the value of NZME. In 2018, the NZ Herald daily brand
audience increased to 1.3 million
2
readers per week. Radio listenership has been consistent
over the last couple of years at about 2.0 million
3
listeners per week, while our online presence
continues to increase reaching an audience of over 2.5 million
4
users per month.

It’s the combined strength of all of our Print, Radio and Digital platforms working together as
one entity that supports our constant focus to grow new revenue opportunities and improve
cost efficiencies at NZME.


1
Nielsen CMI March 2019 Fused Q1 18 – Q4 18 (population 10+ years).
2
Nielsen CMI Q1 18 – Q4 18 AP 15+, represents a combination of Print readership and Digital audience.
3
GfK Radio Audience Measurement, Commercial Stations, NZME and Partners. Cumulative Audience T1 2019
4
Nielsen CMI March 2019 Fused Q1 18 – Q4 18 (population 10+ years).

4

The development, creation and launch of the New Zealand Herald Premium subscription
service is a bold example of NZME delivering on that commitment. Our CEO will talk more
about Premium in a moment – but on behalf of the board I’d like to congratulate our Executive
and their teams for successfully launching New Zealand Herald Premium to market.

SLIDE 6 – NZME Board

In 2018, the Board was pleased to appoint Barbara Chapman and Sussan Turner as non-
executive directors. Both directors are highly credentialed in consumer facing businesses,
having held CEO positions at leading companies in their respective industries, Barbara
Chapman in the retail banking sector and Sussan Turner in media.

This experience complements the strategy and finance skills of David Gibson, appointed in late
2017 and the governance and accounting skills of Carol Campbell who has been a member of
the Board since NZME’s foundation in 2016. The Board has a balanced mix of experience and
skills highly relevant to the NZME business and strategy.

Sussan is standing for election by shareholders today and full details of her experience and
credentials are outlined in the Notice of Meeting.

SLIDE 7 – NZME Executive Team

NZME has a highly experienced, dedicated and talented team, led by CEO Michael Boggs. In
March this year, we were pleased to welcome David Mackrell as our new Chief Financial Officer.
David has extensive finance experience most recently as the Chief Financial Officer of
Heartland Bank and prior to that 25 years with Air New Zealand.

In September last year Katie Mills was appointed as the new Chief Marketing Officer. Katie
has a strong background in brand building, vision and market strategy. She moved to NZME
after nearly two years at Aspire2 as Group Marketing Director. Prior to that Katie spent 15
years with MediaWorks.

The NZME Executive contributes a broad range of skills in the areas of digital, commercial,
editorial, broadcasting, strategy, finance, marketing, operations and legal. They bring
significant industry experience to the business and continue to enable us to deliver on our
strategy.

Most importantly, the NZME team remains highly focused on delivering high quality content to
our audience of 3.3 million Kiwis.

SLIDE 8 – OUR PURPOSE

All of us at NZME were deeply shocked and saddened by the terror attack in Christchurch in
March of this year. The NZME teams did an exemplary job of keeping the country and the
world informed during this terrible event and the Board thanks them for their efforts.

What became apparent throughout the course of this terrible event and in the aftermath
following, was the hugely important and significant role media plays at the time of such events
and the responsibility that comes with that role.

5

We take this responsibility for the accurate, timely and sensitive reporting of such issues and
events very seriously and we were very much reminded of our Purpose at the time of the
Christchurch terror attacks.

NZME is built on a legacy of award-winning journalism and broadcasting. We deliver news,
entertainment and information to Kiwis every day. What we do can empower, enrich and
enliven our audiences and connect them to the people, events and decisions that matter. In
simple terms, what we do is share knowledge.

Our purpose is Keeping Kiwis in the know. Everyone wants to be kept in the know and
keeping New Zealanders in the know is what NZME does best.

Purpose is the unifying theme that unites an organisation's direction and inspires action. It is
our philosophical heartbeat, our beacon.

It’s our reason to believe.

I believe it captures why NZME’s existence matters. Why we are important to the people we
serve and why our people dedicate their precious time, energy and passion to our company.

I’m very proud of the work that’s gone into delivering this for our people - and you’ll see it
more over time as we start to evolve Keeping Kiwis in the know into our external messaging
as well.

SLIDE 9 – CORPORATE SOCIAL RESPONSIBIITY

In our 2018 Annual Report we outlined our commitment to Corporate Social Responsibility.

We continue to develop the framework of our Corporate Social Responsibility reporting with
the objective of ensuring we grow a sustainable business focused on our People, our
Environment and our communities.

This extensive body of work has involved building a clear understanding of the sustainability
issues that are most important to NZME and its stakeholders.

We have adopted the United Nations Sustainable Development Goals framework to provide us
with a regime of measurable objectives and reporting. A CSR Framework and measurements
will be reported for the 2020 financial year.

SLIDE 10 – CAPITAL MANAGEMENT

I would also like to take a moment to talk about capital management and dividends. Following
the completion of a review in November 2018, we announced a revised Capital Management
Policy to support our long-term strategic and financial objectives and operational priorities to
maximise shareholder value.

The near-term objective of the policy is to reduce gearing while maintaining investment in our
growth opportunities. Consistent with the policy, the Board elected not to declare a final
dividend with respect to the 2018 financial year.

The Board notes that since it announced a review of the Capital Management Policy in August
2018 and implemented the new policy in November 2018, the NZME share price has declined,

6

often on very small volumes of share trades. The Board believes that this is in response to
the move from being a high dividend yield business to one which is balancing investing in
growth, debt repayment and dividends. The Board is confident that it is investing in growth
initiatives that will add value to the business and its shareholders in the longer term. Michael
will shortly update you on progress on these initiatives.

While the near-term focus of the policy is to reduce debt and fund growth, we recognise that
dividends are an important part of total shareholder returns. As such, I note that it is the
Board’s intention that NZME remain a dividend paying company.

I would like to emphasise that our core growth strategy remains unchanged and is focused on
delivering shareholder value. There is no doubt that parts of our industry will continue to face
challenges for some time to come.

NZME’s 2018 annual results show that we are in a great position to take advantage of our
business model and the myriad of high-quality platforms and brands that sit within it. We look
forward to embracing the exciting opportunities NZME has to grow.

With many of New Zealand’s most recognised and respected brands, an audience reach that
is difficult to replicate, exceptional people throughout, and a unique integrated print, radio and
digital offering, NZME is in a strong position to grow shareholder value.

In concluding, the Board extends its thanks to our entire team for their commitment and
dedication throughout the year and their contribution to the business.

I will now hand over to our CEO Michael Boggs to provide further detail on the performance of
the business and strategy looking forward.

SLIDE 11 – CEO’S ADDRESS: MICHAEL BOGGS

Thank you, Peter. And welcome to everyone here today and listening on our webcast.

Before I discuss our progress against our three Strategic Priorities for 2019 I’ll take you
through an overview of our 2018 Annual Results.

SLIDE 12 – NZME 2018 ANNUAL RESULTS

While New Zealand advertising demand was softer in 2018 due to economic conditions, the
rate of decline in NZME’s revenue and earnings continued to slow.

During the year we invested in a number of promising new revenue opportunities to grow long
term shareholder value. As the Chairman has mentioned we are progressing our strategy to
grow new revenue streams and retain revenue from traditional advertising sources.

Our full year 2018 statutory net profit after tax was $11.6 million, representing 6.0 cents per
share. Our Trading NPAT, which provides a useful representation of our ongoing earnings, was
$18.9 million, or 9.6 cents per share.

Structural pressures in the print advertising market continued in 2018. In addition, weak
business and consumer confidence impacted Agency advertising. In the context of these
pressures, the 2% Trading Revenue decline we saw in 2018, compared to a 4% decline in
2017, was a pleasing outcome.

7


NZME maintained its share of the radio advertising market
5
and continued to focus on
delivering the best offer to inform, entertain and attract listeners.

Digital advertising revenue growth slowed in 2018, nonetheless we expect it to remain a key
long-term driver of growth
6
.

Since launch in March last year, NZME’s real estate classifieds portal, OneRoof, has made
significant progress, growing real estate listings and audience to support the generation of
modest but growing revenue.

SLIDE 13 – SEGMENT RESULTS

Print

Print revenue of $211.6 million in 2018 was 4% below the previous year. Print benefited from
an additional publishing week in 2018, nonetheless, the underlying rate of decline in Print
revenue continued to slow.

Print advertising revenue of $114.2 million was 6% lower than 2017, impacted by structural
deterioration in Print advertising. There were, however, encouraging segments in Print
advertising, such as the travel category, driven by advertising for the growing cruise ship
industry. The 6% decline in Print advertising revenue in 2018 was a significant improvement
on the declines seen in 2017 and 2016.

Circulation revenue of $81.5 million was 2% lower in 2018. Circulation volume declined,
however yields were maintained through cover price increases.

Radio

Radio and Experiential revenue of $106.8 million in 2018 was 3% lower than 2017. While our
direct sales showed positive trends in 2018, poor business confidence affected our agency
revenue. Overall, we maintained our share of radio advertising market revenue
7
and what is
more pleasing is that we are seeing positive trends in radio advertising revenue in the current
financial year with year on year growth to April 2019.

Our share of the New Zealand radio audience was also stable in 2018
8
. NZME’s leading brands
maintained their strong presence, with NewstalkZB remaining the number one radio station in
New Zealand
9
.

Digital

Digital and e-Commerce revenue grew 6% in 2018 to $60.0 million. The growth rate of the
digital advertising market slowed during 2018.




5
PwC Radio Advertising Benchmark Report, April 2019.
6
PwC Outlook NZ Entertainment Outlook 2018 – 2022.

7
PwC Radio Advertising Benchmark Report, April 2019.
8
GfK Radio Audience Measurement, Commercial Stations. NZME & Partners T1-T4 2018. Market Share %,
population 10+ years.
9
GfK Radio Audience Measurement, Commercial Stations, M-F 6am-9am, Cumulative Audience T1 2019.

8

SLIDE 14 – STRATEGIC PRIORITIES

The last time we spoke I shared with you our 3-horizon approach of optimising our existing
business, launching new ventures to take advantage of our existing audience and customer
relationships, and identifying new business models that address unmet customer needs.

This year we’ve distilled those further to deliver a very focused approach to our priorities.

In the current year, NZME is focussed on three strategic priorities:
1. Leading the future of news and journalism in New Zealand
2. Increasing radio capability and performance
3. Creating New Zealand’s leading real estate platform
SLIDE 15 - Leading the future of news and journalism in New Zealand
On 30 April 2019 NZME launched digital subscriptions on our online mastheads which will
support ongoing investments in content, technology and audience to grow revenue. The launch
of New Zealand Herald Premium was the culmination of a significant amount of preparation
and development and is testament to the hard work of the incredible team at NZME including
the project team across editorial, technology and marketing.
New Zealand Herald Premium delivers access to New Zealand’s finest journalism and
commentary including exclusive, in-depth and agenda-setting articles, investigative reports,
columns, and analysis across business, politics, news, sport, lifestyle and entertainment.
Subscribers also gain access to some of the best international journalism from The Times (UK),
The New York Times, The Financial Times and Harvard Business Review which complements
content from our existing content partnerships with Washington Post, The Telegraph (UK), and
the South China Morning Post.

I am delighted to report that this week we have reached the milestone of 10,000 paying digital
subscribers. This was our target to achieve within the first year so to reach this target within
just 6 weeks is fantastic. Pleasingly, over 35% have opted for an annual subscription. We
have also seen more than 20% of our existing five-to-seven day print subscribers activate
their digital access.

It is still early days, but we are thrilled with the success of the Premium launch so far and we
are committed to providing NZ Herald readers with the best journalism in New Zealand.

The strength of our print brands was recently recognised at the 2019 Voyager Media Awards,
with The Herald winning best daily newspaper and Viva winning best magazine. I would also
like to acknowledge our amazing journalistic team, many of who were also recognized at the
Voyager awards, in particular:

• Nicholas Jones who won best scoop, best individual investigation and runner up for the
nib senior health scholarship.
• Simon Wilson who won opinion writer of the year.
• Kim Knight who won best arts, entertainment and/or lifestyle portfolio
• Kirsty Johnston who won best crime and/or social issues category; and
• Luke Kirkness who won student journalist of the year

We are very proud of our entire journalistic team who continue to go above and beyond to
deliver high quality, premium content across our distribution platforms.

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Slide 16 - Increasing radio capability and performance

NZME is the second largest radio operator in New Zealand, with a weekly audience of 2.0
million
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. In 2019, we have continued to enhance radio sales skills with market leading Radio
specialists being appointed to support the integrated sales model.

We are also investing in new talent across a number of our radio brands. The new talent and
shows include Simon Barnett and Phil Gifford reuniting on NewstalkZB in the afternoons and
Heather du Plessis Allan hosting ZB’s Drive Show. Other new on-air teams include Laura, Sam
and Toni on The Hits Breakfast, Bree and Clint on ZM, and Bernie and Jason on Coast.

This focus on new talent is driving audience and is a key point of difference between NZ Radio
and the algorithm driven platforms, like Spotify and Facebook.

Our digital radio platform, iHeart Radio, continues to grow with registered users up 15% to
870,000 year on year
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and streaming hours up 6% to 3.5 million year on year
12
.

Slide 17 - Creating New Zealand’s leading real estate platform

Since its launch in March 2018, our Real Estate portal, OneRoof, has significantly grown listings
and audience, and generated promising initial revenues.

OneRoof has enjoyed strong audience growth since launch, supported by listings and the
integrated content and advertising strategy. Audience growth was given a significant boost in
early December 2018 with the release of the OneRoof Quarterly Property Report, the third of
which was released just last week with unique browsers increasing to 348,000 per week.

I’m pleased to report that we now feature listings from all major real estate agencies. We
have launched several new user features including the ability to create and share property
lists and an improved open home planner.

The successful delivery on our 3 strategic priorities will build diversified sustainable revenue
streams in our print and digital businesses and ensure our radio business is performing to its
full potential.

SLIDE 18 – TRADING UPDATE

Finally, I want to take a moment to update you on our trading performance year to date.

The successful launch of NZ Herald Premium digital subscriptions has exceeded our revenue
expectations.

OneRoof now has 70% of residential property listings with continued revenue growth
momentum.

Advertising bookings year to date are tracking about 3% below last year but have declined at
a slower rate than full year 2018, with growth in radio advertising revenue. The year on year
declines in the Agency market experienced in the second half of 2018 have continued into the

10
Gfk Radio Audience Measurement, Commercial stations, NZME and Partners, Cumulative Audience T1 2019.
11
iHeartMedia; Adobe Analytics, April 2019
12
AdsWhizz and StreamGuys, April 2019

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first half of 2019, impacting digital revenues, however the market is now showing early signs
of an improving trend compared to the same period last year.

Our focus on cost reductions have continued with initiatives delivering improvement in the
underlying cost base.

The company is on target to reduce debt in line with our Capital Management Policy.

Finally, our brilliant people and their enthusiasm for what we do, make NZME a great company
to work for and a great business. I thank them for their commitment, their innovation and
their determination to succeed.

I witnessed that closely in the build, the launch and ongoing success of NZ Herald Premium.

I’ll leave you with a message about our NZME purpose – KEEPING KIWIS IN THE KNOW.

SLIDE 19 - VIDEO

PLAY NZ Herald Premium VIDEO

I will now hand back to the Chairman for the formal business of the meeting.

SLIDE 20 - RESOLUTIONS – PETER CULLINANE

Thank you, Michael.

Ladies and Gentlemen, we will now address the matters requiring resolution, which are
outlined in the Notice of Meeting.

There will be an opportunity for shareholders to ask questions on each resolution. When I call
for questions, please raise your hand if you have a question. We ask you to wait for a
microphone before speaking. Please clearly state your name, and confirm that you are a
shareholder or proxy, before asking your question.

I ask that in the interests of fairness to all shareholders attending this meeting that anyone
wishing to speak be as concise as possible and be considerate to other shareholders wishing
to ask questions.

As the audio of the meeting is being streamed online, remember that you will be heard by an
audience outside of this room. Questions raised by shareholders should relate directly to the
resolution being considered. There will be an opportunity to ask general questions at the
conclusion of the formal business.

I propose that voting on each of these resolutions be conducted by way of a poll. You should
all have a voting card which was given to you when you registered. Please mark this card to
indicate your vote. If you are here as a shareholder or proxy and do not have a voting card,
please raise your hand and someone will assist you.

Resolutions 1 and 2 as set out in the Notice of Meeting are to be considered as ordinary
resolutions and, as such, must be approved by a simple majority of the votes cast by
shareholders entitled to vote and voting on Resolutions 1 and 2. Resolution 3 is to be
considered as a special resolution and, as such, must be approved by 75% or more of the

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votes cast by shareholders entitled to vote and voting on Resolution 3. Details of postal and
proxy votes received in respect of each resolution will be displayed on screen.

SLIDE 21 - RESOLUTION 1: Election of Sussan Turner

The NZME constitution, and the new NZX Listing Rules which we adopted on 1 June 2019,
require Directors appointed by the Board since the most recent Annual Shareholders’ Meeting
to retire and stand for election by shareholders. As such, Sussan Turner is required to retire
from the Board and stand for election.

Sussan’s extensive management and governance experience in media, together with her skills
in transforming and building new business models complement the mix of skills and experience
on our Board. Since joining the Board in July 2018, Sussan has made a valuable contribution
and her election has the unanimous support of the Board.

Having had regard to the factors described in the NZX Corporate Governance Code that may
impact director independence, the Board considers that Sussan Turner qualifies as an
independent director.

I now invite Sussan to address her election.

SUSSAN TURNERS’ SPEECH

PETER CULLINANE TO CONTINUE

Thank you, Sussan.

Before we move to the vote, are there any questions for the Board concerning the resolution?

Take questions from floor

I now move, as an ordinary resolution, that Sussan Turner be elected as a Director of NZME.

Voting on this resolution will be conducted by way of poll using your voting cards, where one
vote is cast for each share held.

The votes received in advance of today’s meeting for Resolution 1 are displayed on the screen.

Please mark your voting cards in the way you wish to vote by ticking “FOR”, “AGAINST” or
"ABSTAIN" in the appropriate place on the voting card.

We will collect your voting cards after voting on all resolutions is complete.

SLIDE 22 - RESOLUTION 2: Auditor’s Remuneration

In accordance with the Companies Act, PwC will automatically be re-appointed as the auditor
of the Company. The resolution authorises the Board to fix the auditor’s remuneration for the
forthcoming year.

Before we move to the vote, are there any questions for the Board concerning the resolution?

Take questions from floor

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I now move, as an ordinary resolution, that the Directors of NZME are authorised to fix the
auditor’s remuneration.

Voting on this resolution will be conducted by way of poll using your voting cards, where one
vote is cast for each share held.

The votes received in advance of today’s meeting for Resolution 2 are displayed on the screen.

Please mark your voting cards in the way you wish to vote by ticking “FOR”, “AGAINST” or
"ABSTAIN" in the appropriate place on the voting card.

SLIDE 23 - RESOLUTION 3: Amendment of Constitution

This special resolution seeks shareholder approval to alter NZME’s constitution. The
amendments to the constitution are procedural in nature as a result of NZME’s transition to
the new NZX Listing Rules on 1 June 2019.

A marked-up copy of the constitution has been available for inspection during the meeting
notice period here at NZME’s registered office and also on our website.

The Board unanimously recommends shareholders vote in favour of the alterations to NZME’s
constitution.

Before we move to the vote, are there any questions for the Board concerning the resolution?

Take questions from floor

I now move, as a special resolution, to amend NZME’s constitution in the form and manner
described in the explanatory notes, with effect from the close of the Annual Shareholders’
Meeting.

Voting on this resolution will be conducted by way of poll using your voting cards, where one
vote is cast for each share held.

The votes received in advance of today’s meeting for Resolution 3 are displayed on the screen.

Please mark your voting cards in the way you wish to vote by ticking “FOR”, “AGAINST” or
"ABSTAIN" in the appropriate place on the voting card.

We will now collect your voting cards, thank you. Final resolution results will be released on
the NZX and ASX shortly after today’s meeting concludes.

SLIDE 24 – General Business and Shareholder Discussion

Having now completed the formal business of the meeting we will shortly invite shareholders
to raise any questions of a general nature.

I remind you that only registered persons holding shareholder cards today are to speak or ask
questions at this meeting.

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Again, please raise your hand if you wish to ask a question, and we will ask you to move to
the microphone at the front of the room. Please clearly state your name, and confirm that you
are a shareholder or proxy, before asking your question.

As the audio of this meeting is being streamed online, remember that you will be heard by an
audience outside this room. Do any shareholders now wish to ask a question?

Questions & Answers

Thank You

Thank you for your questions today, your participation, questions and feedback is greatly
valued. To wrap up today’s proceedings, I would like to reiterate NZME’s focus on improving
shareholder value. We are working hard to maintain revenues in our traditional business but
also looking beyond this to establish new revenue streams.

In the pursuit of improved and sustainable returns for shareholders, we remain strongly
focused on ensuring that NZME is a great place for our employees to work, and a great place
for our audiences to be informed and entertained.

Thank you again to my fellow Board members, executives and staff for your dedication and
hard work, and to our shareholders for your continued support.

I now declare this meeting closed. We will be available to meet you as you depart the iHeart
lounge today.

End of Meeting