Annual Shareholders’ Meeting Presentation and Addresses

MARKET ANNOUNCEMENT



11 June 2020



2020 Annual Shareholders’ Meeting Presentation and Addresses

AUCKLAND, 11 June 2020: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) attaches the
Chair of the Meeting and the CEO’s addresses, and presentation which will be delivered at
the Annual Shareholders’ Meeting being held online today, commencing at 3:00pm (NZT).

ENDS

Authorised by the NZME Board

For further information:

Cliff Joiner
GM Communications
NZME
T: +64 21 270 9995
Email: cliff.joiner@nzme.co.nz

2


CHAIR OF MEETING’S ADDRESS: CAROL CAMPBELL

Shareholder value creation is an issue many businesses are facing, so NZME is not alone in
this.

It has been disappointing to see significant shareholder value declines across the total New
Zealand media market and in NZME’s share price specifically.

Today, I will discuss with you several areas that we, as a board, are focussed on to build
shareholder value.

Building Shareholder Value

They are:

1. NZME participating in market consolidation;

2. Cost management and efficiency;

3. Building topline revenue performance and growth;

4. Prudent capital management and dividend policy;

5. Reviewing Board and management expertise;

6. Improving communications with our shareholders; and

7. Effectively managing the impacts of COVID-19 and Government support.


Let me talk to each of these individually.



PARTICIPATING IN MARKET CONSOLIDATION

As we have stated: given the current economic conditions, there is significant value to be
gained through market consolidation.

NZME is well placed to take advantage of market consolidation in a way that both protects
New Zealanders’ access to news and entertainment and grows shareholder value.

NZME plans to continue to explore options to work with Stuff, but in the meantime will
complete vigorously with Stuff in the competitive market we operate in, as we have done for
many years.

The main competitive threat to NZME are the search and social media giants including
Facebook and Google. While NZME is pleased to see regulatory developments in Australia
in this area, and is hopeful the NZ government will follow suit, it is no secret that the digital
advertising market share of these global giants in NZ continues to increase.

3

As you will know, Bauer Media Group abruptly closed. NZME has moved quickly to take
advantage of the opportunities this has created by rapidly introducing OneRoof Local print
publications in key markets in Auckland, expanding NZME’s real estate offering and bundles,
across print and digital.


COST MANAGEMENT AND EFFICIENCY

NZME’s focus on cost management and efficiency across the business has been relentless
through the years.

As already announced, NZME has made a number of reductions including the loss of more
than 200 roles, representing 14% of NZME’s workforce, temporary salary reductions of 15%
for most of NZME’s people and the 20% reductions for your Board and Chief Executive
Officer.

Combining these with the further cost out initiatives that have been taken, accelerated the
cost out trajectory.

BUILDING TOPLINE REVENUE PERFORMAMCE AND GROWTH

Turning now to revenue performance and growth.

NZME was demerged from APN Australia, now HT&E, in June 2016.

Since the demerger we have focussed on 3 key strategic priorities
1. Leading the future of news and journalism in New Zealand
2. Growing radio and leading digital audio and
3. Creating New Zealand’s leading real estate platform

Michael will take you through these.


PRUDENT CAPITAL MANAGEMENT AND DIVIDEND POLICY

At its demerger from APN, NZME was set-up with a debt position and dividend policy that
was unsustainable over the medium term.

While the Board wishes to pay dividends on a regular basis, it needed to make a trade-off
between the level of debt, the level of dividends and the ability to refinance into the future.
As you know, this resulted in the cessation of dividends for now.

This has seen NZME’s peak debt reduce from $115million to $75million at 31 December
2019. We are pleased to have reduced this further to $62m at 31 May 2020.

As announced last week, NZME has agreed terms to extend its existing debt facilities to 1
July 2023. The new term of the bank facilities provides the Company with certainty of funding
for the next three years.

4

As with the previous facilities, the new $110m facilities will step down each year to a level of
$75m at 31 December 2022. This provides significant headroom over the net debt position
of $62m as at 31 May 2020 and aligns with the Board’s focus on overall debt reduction.

While further debt reduction is required, the Board fully supports the return to paying dividends
as soon as possible after 1 July 2021

The Board is keenly aware that many shareholders value dividends and have been
disappointed with no distributions as we reduce debt.

NZME firmly believes that debt reduction must remain the first priority and that the policy has
put NZME in a strong position to weather the COVID storm, as well as strengthened its ability
to take advantage of inevitable market consolidation.

A number of other NZX listed corporates have raised discounted equity during the COVID-19
shutdown period. NZME has not been one of them and currently has no requirement to in the
foreseeable future.

REVIEWING BOARD AND MANAGEMENT EXPERTISE;

Looking now at your Board and management teams

Board

The New Zealand media environment has been regarded as one of the most, if not the most,
competitive in the world and NZME has performed well relative to its peers in the market.

I would like to acknowledge Barbara, David and Sussan for their ongoing diligence and
expertise.

The Board has a balanced mix of experience and skills highly relevant to the NZME business
and strategy.

With Peter Cullinane’s resignation today the board will be meeting next week to discuss a
new Chair for the Company.

An announcement regarding NZME’s new Chairperson will be made after that.


Management

During 2019 there were some changes to the Executive Team designed to ensure the NZME
senior leadership retains the most appropriate mix of skills and experience and it remains
responsive to effectively deliver on our strategic priorities.

At the end of 2019 we welcomed Wendy Palmer to the NZME executive as Chief Radio and
Commercial Officer and appointed Paul Hancox as a member of the executive team as Chief
Revenue Officer.

Both Paul and Wendy are incredibly experienced media executives with a deep and proven
understanding of the commercial business strategies required to connect content and

5

audiences with commercial partners. Wendy’s most recent executive experience as CEO of
Mediaworks Radio, supports one of our key strategic priorities.

The Board would like to reiterate its confidence in NZME CEO Michael Boggs and the
Executive Team. Michael has led the business through an incredibly challenging time,
including the crisis phase of COVID-19.


IMPROVING COMMUNICATIONS WITH OUR SHAREHOLDERS

Over the last year the market has changed in that there is now only one New Zealand analyst
covering NZME and this limits the amount of communication and analysis on NZME’s
performance and valuation.

The Board acknowledges that shareholders are wanting more information and insight
regarding the corporate strategy and future of NZME. The Board also recognises the
importance of regular communication and engagement with shareholders. Given this, the
Board and management have resolved to increase the detail and frequency of shareholder
communications.

In addition, the Board values further engagement with shareholders to understand their
perspectives on shareholder value creation.



EFFECTIVELY MANAGING THE IMPACTS OF COVID-19 AND GOVERNMENT SUPPORT

The impacts of COVID-19 have been significant.

The executive team took swift action to protect profitability and shareholder value placing
NZME in a relatively strong position as it moves out of the crisis phase into the rebuild phase.

It is ironic that while NZME was deemed an essential service, the revenue required to support
delivering that essential service reduced significantly. Not only that, the number of New
Zealanders turning to NZME to consume that essential service lifted to record levels.

NZME has received Government support through a wage subsidy of approximately $9m
received in April 2020 and a tranche one media support package.

A second tranche of support has been flagged by the Government, with the intention that it
supports a sustainable media environment in New Zealand.

Government has signalled that it wants to ensure a strong commercial media sector and that
it may provide further financial support.

The Government support and focus on NZ media players is welcomed.

We are confident with our focus in these seven areas, that we will increase shareholder value.

6


Our Purpose and Sustainability Commitment

Supporting these seven areas of focus on shareholder value creation is NZME’s Purpose of
keeping Kiwis in the know and our Sustainability Commitment.

The worldwide COVID-19 pandemic brought home to me just how relevant NZME’s Purpose
is to our business, our people and our audiences.

In the face of such uncertainty and anxiety, our communities value information they can trust.

The responsibility our people have to keep Kiwis in the know will rarely be as important as it
has been over the past couple of months.

This is reflected in the high levels of engagement we are seeing across NZME’s brands.

nzherald.co.nz had almost three full months of more than 1 million visits a day, resulting in
NZME getting up to 2.5 million a day at the peak of the crisis. NewstalkZB streams on
iHeartRadio doubled during the lead up to the lock down period.

New Zealanders have needed all the information they get access to - and I’m proud of the
way all of our teams across NZME have delivered on our purpose.

We are pleased with the work that has gone in to champion our Sustainability Commitment
that focusses on our communities, our people and our environment.

An effective, sustainable and measurable commitment is now a key requirement for
responsible, forward looking businesses and supports financial performance.

On behalf of myself and the board, I’d like to thank and congratulate Michael and his team for
the bold and decisive leadership that is seeing us deliver on our strategy and excel through
the crisis phase of Covid-19 and beyond.

I’ll now hand over to Michael to discuss NZME’s strategic priorities and performance.

CEO’S ADDRESS – MICHAEL BOGGS

Thank you, Carol. And welcome to everyone joining us today

Before I discuss our progress against our three Strategic Priorities for 2020, I’ll take you
through an overview of our 2019 Annual Results.

NZME 2019 Annual Results

I don’t propose to go through all of the numbers on this slide but would observe that Operating
Revenue of $371.7 million reflects the strong momentum in our 3 strategic priorities.

I’d also like to point out that the 2018 year included an extra trading week. On a comparable
basis, 2019 Operating EBITDA was down 5% on the full year, but in the second half it grew
4%. Contributing to this, was our continued focus on our cost base, resulting a reduction of
4% compared to the prior year.

Operating NPAT was up 4% on the prior year.

7

We have reported a statutory net loss after tax impacted by an impairment to intangible assets
of $175 million in the year. This impairment relates to intangible assets, which were the result
of historic transactions which occurred prior to the demerger. This is an accounting charge
only, with no impact on cash flows, and no impact on bank covenants.

As noted earlier our ongoing focus on capital management resulted in a $23.6 million
reduction in Net Debt to $74.7 million.

Content Reach

As reported in February, New Zealanders are engaging with our major brands across our
print, radio and digital platforms.

Through 32 print publications, 8 radio networks, and multiple digital platforms, NZME reaches
3.3 million New Zealanders.

The New Zealand Herald is the powerhouse of our newspaper portfolio - read by 1.2 million
Kiwis each week.

Radio has a host of brands dominating their target demographics – such as NewstalkZB and
ZM – reaching 2 million listeners each week.

And, we have 2.6 million users engaging with our digital platforms every month.

Strategic Priorities

Let’s now turn to our Strategic Priorities.

Put simply, the results in terms of revenue, audience engagement and targets set and met -
show our strategy is working.

We have made pleasing progress across all three strategic priorities, and believe a
continued focus in these areas is the best approach to increasing shareholder value.

Leading the future of news and journalism in New Zealand
In 2019 NZME took a market leading initiative and launched New Zealand Herald Premium.
It has been lauded as the most ambitious move in media last year.
New Zealand Herald Premium now has 70,000 subscribers. This includes over 36,000 paid
digital subscribers, up 70% in just four months, and 34,000 eligible print subscribers who have
activated their digital subscription as part of their print bundle package.
NZ Herald Premium has proven that New Zealanders will pay for high quality content – we
take heart in the fact that over 25% of our Premium subscribers are on annual subscriptions.
2020 will continue to see us focus on growing digital premium content and subscriptions and
increasing digital advertising revenue.
One of the initiatives supporting this is the launch of the new Herald app. The new app has a
focus on improving the user experience, by enhancing user options to personalise what they
see and how they use it.

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But importantly, with enhancements released in the last two weeks, the new app also allows
users to subscribe to Premium directly from the app. And as all app users will now see
Premium content on their mobile devices - they can see what they’re missing.
We know from overseas experience that we can expect to see a further acceleration in
subscription growth as a result of this app update.
We are also upweighting our focus on Premium business content. We know that business
stories are a great driver of digital subscriptions - so we’ve directed some senior editorial
attention to the NZ Herald Business Team.
We’ll see more exclusive business stories, insightful analysis and opinion sitting in Premium,
and again we expect this to drive new subscriptions.
Compared to the last available Australian publisher figures New Zealanders are still
enamoured with print products. Our NZ Herald has a daily print circulation still larger than any
of the quality Australian newspapers such as The Age, the Sydney Morning Herald, The
Australian and the Australian Financial Review, notwithstanding New Zealand being one fifth
of Australia’s population.

However, as I noted above, in just 13 months, NZME has added over 36,000 paying digital
subscribers and has a further 34,000 who are subscribed as part of their print subscription
with NZME. We feel that the available headroom, given Australian examples, is still enormous
for our iconic national digital brand the New Zealand Herald.
I would like to highlight the success of our New Zealand Herald teams at the 2020 New
Zealand Voyager Media Awards announced last month.
The New Zealand Herald claimed the three biggest prizes – Newspaper of the Year,
Website of the Year and Best News Website or App – along with many individual awards.
In addition, NZME has just been awarded the Best Global Media Brand in Asia/Pacific for
the second year running.
As Carol has mentioned, ours is an incredibly competitive industry – and especially so in the
world of news and information. This recognition is fiercely fought for, and justly deserved by
our NZME team.


Growing radio and leading digital audio

I’m pleased with the results that our radio teams delivered in 2019.

The 5% radio revenue growth in the second half of 2019 contributing to full year growth of 2%
is very encouraging. Radio advertising revenues grew to be larger than the print advertising
revenues – the first time that this has been the case.

As Carol mentioned, we welcomed Wendy Palmer to the NZME executive as Chief Radio
and Commercial Officer and appointed Paul Hancox as a member of the Executive team as
Chief Revenue Officer.

The combined approach of improving sales capability and technology, with on-air talent
acquisitions to build audience engagement, helped drive growth across the year – including

9

growth in radio revenue and growth in radio audience market share –we have seen further
revenue share growth in 2020.

Our tactical plans to grow our revenue at the expense of our competitors, saw us in February
announce the re-organisation of some of our hosting line-ups on two of our major radio
brands.

The moves are part of a strategic review of our radio networks - ensuring we are delivering
the best content for our audiences and providing the best opportunities for our commercial
partners to connect with those audiences. We have further tactics from this strategy for
completion this month.

We have also seen growth in iHeartRadio – with increased registered users, now over 1
million, and increased average monthly listening hours resulting in a 40% increase in revenue
from iHeartRadio, now making up approximately 2% of total radio revenue.

We also recorded significant news focused audience growth in iHeartRadio during the
COVID-19 crisis, with NewstalkZB iHeartRadio audience doubling at points during the lock
down. This has supported the further 21% increase in average monthly listening hours that
we have seen so far in 2020.
Creating New Zealand’s leading real estate platform
We continued to make significant progress with OneRoof and have a strong focus for 2020.
Along with the rest of New Zealand, we are keenly observing the New Zealand property
market for signs of COVID-19 impact.
I’m pleased to share with you that OneRoof now has all of New Zealand’s leading real estate
companies listing on the platform.
–In addition, OneRoof can now proudly claim to have more “for sale” listings in Auckland than
any other property portal.
Both of these milestones have been key goals for this year.
OneRoof delivered revenue of $2.8 million in 2019 – up from $0.7 million in 2018. 2019 saw
higher incremental direct costs for OneRoof compared to 2018, with 2019 representing a full
year of costs.
Our focus in 2020 is to continue to improve audience engagement through growth in listings
and content; to increase revenue from agents; and to grow overall OneRoof revenue and
contribution.
Over 70% of OneRoof’s revenues in 2020 have been generated from vendor listing upgrades
and as Carol mentioned earlier, we have launched a number of OneRoof Local print
publications in Auckland to fill a gap left in the market by the Bauer exit.
At the recent International News Media Association awards, OneRoof was awarded second
place globally for the best idea to acquire or retain advertising clients.

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Trading Update
As I reflect on a tumultuous past few months, I’ll comment that 2020 started with strong
momentum, driven by continued growth in radio, OneRoof, and premium subscriptions.
As we have reported, COVID-19 had a significant impact on advertising revenue. April 2020
advertising revenues were around 47% lower than April 2019 and May 2020 was 39% lower
than last year.
We have seen increased advertiser activity over the last two weeks and anticipate June 2020
advertising revenues will be around 30% lower than 2019.
Costs, including the temporary salary reductions, are currently tracking 25% below 2019
levels for quarter two of this year and significant cost reductions on last year will continue. In
addition, we have received a $9 million Government wage subsidy.
It’s impossible to predict with any accuracy the impact of the pandemic on NZME’s full year
financial performance.
However we do expect first half 2020 operating EBITDA including the wage subsidy, to be
higher than that achieved in the first half of 2019.

Closing comments from the CEO
I’d like to comment about the culture and the spirit, of NZME during the COVID-19 crisis.
Jobs were lost, pay cuts were taken, roles and functions were disrupted, at the same time
as people were grappling with uncertainty and worried about their ability to keep themselves
and their families safe and well.
While all this was going on, our people had an essential job to do - to keep Kiwis in the know.
In addition, the salary reductions of 15% taken by nearly all NZME employees right across
the country demonstrates the passion and dedication that they have for your company.
I was humbled by the graciousness and understanding of those that had to leave us recently
during the crisis.
As noted, we have a passionate team at NZME, with 92% of employees providing feedback
in the staff engagement survey last year and this has seen overall employee engagement
increase year on year.
I’m incredibly proud, as I hope we all are, of the people in our business who have delivered
for their communities and for New Zealand.

---

Annual Shareholders
Meeting
11 June 2020

WELCOME
Carol Campbell
INDEPENDENT DIRECTOR
2

AGENDA
3
Chair’s Address
04
Chief Executive Officer’s Address15
Ordinary Resolutions
Supported by your Board
2 Election of Director – Barbara Chapman
3 Auditors Remuneration
Not Supported by your Board
4 Shareholder Proposal
5 Shareholder Proposal
6 Shareholder Proposal
24
General Business30

Carol Campbell
INDEPENDENT DIRECTOR
4

5
Building Shareholder Value
1. NZME participating in market consolidation
2. Cost management and efficiency
3. Building topline revenue performance and growth
4. Prudent capital management and dividend policy
5. Reviewing Board and management expertise
6. Improving communications with shareholders
7. Effectively managing the impacts of Covid-19 and
Government support

6
Building Shareholder Value
1. NZME Participating in market consolidation
2. Cost management and efficiency
3. Building topline revenue performance and growth
4. Prudent capital management and dividend policy
5. Reviewing Board and management expertise
6. Improving communications with shareholders
7. Effectively managing the impacts of Covid-19 and
Government support

Building Shareholder Value
1. NZME Participating in market consolidation
2. Cost management and efficiency
3. Building topline revenue performance and growth
4. Prudent capital management and dividend policy
5. Reviewing Board and management expertise
6. Improving communications with shareholders
7. Effectively managing the impacts of Covid-19 and
Government support
7

Leading the future of news and
journalism in New Zealand
Growing radio and leading
digital audio
Creating New Zealand’s leading
real estate platform
123
BUILDING TOPLINE REVENUE PERFORMANCE AND
GROWTH
8

•
Capital management plan is to reduce debt while maintaining investment in growth
opportunities across the business.
•
Net debt reduced by $23.6 million in 12 months to $74.7 million as at
31 December 2019, and to $62.0 million at 31 May 2020.
•
Agreed terms to extend existing debt facilities to 1 July 2023. The new term of the bank
facilities provides the Company with certainty of funding for the next three years.
•
Focus on strengthening balance sheet to enable a return to Dividend payments in 2021
Net Debt ($m)
Leverage Ratio
(Net Debt / 12 month Operating EBITDA)
Dividend Policy
Subject to achieving the annual debt reduction
target, and having regard to NZME’s capital
requirements, operating performance and
financial position at the time, NZME intends to
pay dividends of 30% to 50% of reported NPAT.
Full dividend policy is available at
www.nzme.co.nz/investor-relations/dividends/
PRUDENT
CAPITAL
MANAGEMENT
AND DIVIDEND
POLICY
9
9

THE NZME
BOARD
A
Carol Campbell
Independent Director
Barbara Chapman
Independent Director
David Gibson
Independent Director
Sussan Turner
Independent Director
B
C
D
A
B
C
D
10

THE NZME
EXECUTIVE
TEAM
Michael Boggs
Chief Executive Officer
David Mackrell
Chief Financial officer
Laura Maxwell
Chief Digital Officer
Wendy Palmer
Chief Radio & Commercial Officer
Shayne Currie
Managing Editor
Matt Wilson
Chief Operations Officer
Allison Whitney
General Counsel
Paul Hancox
Chief Revenue Officer
Katie Mills
Chief Marketing Officer
A
B
C
D
E
F
G
H
I
11
EF
G
I
H
B
A
C
D

12
Building Shareholder Value
1. NZME Participating in market consolidation
2. Cost management and efficiency
3. Buidling topline revenue performance and growth
4. Prudent capital management and dividend policy
5. Reviewing Board and management expertise
6. Improving communications with shareholders
7. Effectively managing the impacts of Covid-19 and
Government support

13
Building Shareholder Value
1. NZME Participating in market consolidation
2. Cost management and efficiency
3. Buidling topline revenue performance and growth
4. Prudent capital management and dividend policy
5. Reviewing Board and management expertise
6. Improving communications with shareholders
7. Effectively managing the impacts of Covid-19 and
Government support

14
OUR PURPOSE AND SUSTAINABILITY
COMMITMENT
We are committed to protecting the craft of journalism and broadcasting to keep Kiwis in the know.
14
14

Michael Boggs
CHIEF EXECUTIVE OFFICER
15

For the year ending 31 December 2019
1. Operating results are presented excluding the impact of NZ IFRS 16 and exceptional items to allow for a like for like comparison
between 2018 and 2019 financial years.
10.0cps
Operating EPS
1
2018 9.6cps4%
$50.6m
Operating EBITDA
1
2018 $54.7m 7%
$19.7m
Operating NPAT
1
2018 $18.9m 4%
($165.2m)
Statutory Net Loss after Tax
2018 Stat. NPAT $11.6m
$74.7m
Net Debt
Reduced by $23.6m
$371.7m
Operating Revenue
1
2018 $388.9m 4%
RESULTS
SUMMARY
16
16

1. Nielsen CMI Q1 19 - Q4 19, Fused March 2020
,
People 10+.
2. Print publications include 8 Metro and Regional newspapers, 18 community publications and 7 Newspaper Inserted Magazines.
3. Nielsen CMI Fused Q1 19 - Q4 19, People 15+.
4. PwC NPA quarterly performance comparison report, March 2020, NZME revenue market share for the 12 months to March 2020.
5. GfK Radio Audience Measurement, Commercial Radio Stations, NZME and Partners, Cumulative Audience, S1 2020, AP10+. (1,982,800)
6. GfK Radio Audience Measurement, Commercial Radio Stations, NZME, S1 2020, Commercial Market Share (%).
7. GfK Radio Audience Measurement, Commercial Radio Stations, NZME and Partners in major markets, S1 2020, Monday-Sunday 12mn-12mn, station share %, AP 10+.
8. PwC Radio advertising market benchmark report, April 2020.
9. AdsWizz and StreamGuys, April 2020.
10. Nielsen Online Ratings, April 2020.
11. OneRoof’s listings as a percentage of residential for sale listings on Trade Me.
PRINT
RADIO
DIGITAL
•33 print publications across New Zealand
2
• 1.6 million NZ Herald weekly brand audience
3
• 1.2 million weekly print readers
3
• 455,000 average issue readership
3
• Print revenue market share 46.9%
4
for 12 months to March 2020
•8 radio stations serving all key demographics
• 2.0 million weekly listeners
5
• Newstalk ZB - number one station and Mike
Hosking Breakfast Show the most popular
breakfast show
6
• Radio audience market share 39%
7
• Radio revenue market share 39.6%
8
for 12
months to April 2020
• iHeart Radio – 1 million registered users (up
13%), 4.7 million listening hours in April 2020 (up
21% compared to 2019)
9
• 2.6 million digital users per month across our
digital platforms
1
•NZ Herald Premium: Over 36,000 paid
premium digital subscribers, 1.9 million monthly
unique audience on nzherald.co.nz
10
•OneRoof: 363,000 monthly unique audience
10
,
81% of active residential for sale listings in New
Zealand
11
•Driven:Over 45,000 for sale vehicle listings,
164,000 monthly unique audience
10
•GrabOne:322,000 monthly unique audience
10
NZME CONTENT REACHES
3.3 MILLION
1
NEW ZEALANDERS
17

Leading the future of news and
journalism in New Zealand
Growing radio and leading
digital audio
Creating New Zealand’s leading
real estate platform
Focused on Growth
123
STRATEGIC PRIORITIES
18

19
2020 Focus
Grow digital subscription revenues
Enhance digital product and revenues
Improve core print revenue trends
19
LEADING THE FUTURE OF NEWS &
JOURNALISM IN NEW ZEALAND
2020 Key Success Metrics
Growth in digital subscriptions and revenue
while maintaining NZ Herald site audience
and engagement
Return digital advertising revenue to growth
Improve print subscriber retention and reduce
advertising revenue declines
Results to Date
• Over 36,000 paid NZ Herald Premium Subscribers up from
21,000 at February 2020
• An additional 34,000 print subscribers who have activated their
premium access up from 25,000 at February 2020
• NZ Herald App upgraded to allow in App Purchasing of Premium
access
• NZ Herald awarded Website of the Year, Best News Website or
App, Newspaper of the Year
• NZME NZ Herald awarded Best Global media brand in
Asia/Pacific (for the second year running)
19

20
2020 Focus
Enhance radio sales capability
Improve radio content offering
Maximise the potential of the iHeart
product
1. iHeartMedia, Adobe Analytics, April 2020.
2. AdsWizz and StreamGuys, April 2020
GROWING RADIO AND LEADING
DIGITAL AUDIO
20
2020 Key Success Metrics
Growth in radio revenue.
Grow radio audience share in the 25-
54 demographic
Growth in iHeart Radio and podcast
consumption
Revenue growth from digital audio
products
Results to Date
• Radio revenue market share continues to increase year
on year
• Content changes in progress and will be completed in
June 2020
• iHeart Radio registered users more than 1 million
1
and
average monthly listening hours 4.7m
2
per month year to
date.
20

1. OneRoof’s listings as a percentage of active residential for sale real estate listings on Trade Me.
2020 Key Success Metrics
Improve listings, audience and
engagement metrics
Increase revenue from agent products
OneRoof revenue growth and improved
contribution
21
CREATING NEW ZEALAND’S
LEADING REAL ESTATE PLATFORM
2020 Focus
Develop OneRoof as a prominent national
brand
Deliver data driven agent promotion
product
Maximise potential of existing products
Results to Date
• OneRoof now the largest platform for sales listings in Auckland
• OneRoof for sales listings increased to 81%
1
of NZ residential
listings
• 70% of OneRoof revenues year to date generated from vendor
listings upgrades
• New OneRoof local print products launched to fill gap in market
• Awarded second place globally for best idea to acquire or retain
advertising clients
21

TRADING
UPDATE
•
It was an encouraging start to 2020 – driven by continued growth in Radio, Digital
classifieds, and Digital subscriptions.
•
The impacts of Covid-19 have been significant with Advertising Revenue in April
2020 around 47% lower than April 2019, May 2020 39% lower than May 2019.
•
June 2020 expected to be around 30% lower than June 2019.
•
The cost initiatives, including temporary salary reductions, are currently tracking 25%
below 2019 levels for quarter two of this year, and significant reduction on last year
will continue.
•
It’s impossible to predict with any accuracy the impact of the pandemic on NZME’s
full year financial performance.
•
We expect first half 2020 operating EBITDA, including the wage subsidy, to be higher
than that achieved in the first half of 2019.
2222

CURIOUS, CONFIDENT & CONNECTED
23

ORDINARY
RESOLUTIONS
24

ORDINARY RESOLUTIONS
Resolution 2
Resolution supported by your board
To consider and, if thought fit, to pass the following ordinary
resolutions:
Resolution 2: Election of Director
It is hereby resolved, as an ordinary resolution, that Barbara
Chapman, who stands for re-election before the end of her
term and is eligible for re-election, be re-elected as a
Director of NZME.
25

ORDINARY RESOLUTIONS
Resolution 3
Resolution supported by your board
To consider and, if thought fit, to pass the following ordinary
resolutions:
Resolution 3: Auditor’s Remuneration
It is hereby resolved, as an ordinary resolution, that the
Directors of NZME are authorised to fix the auditor’s
remuneration.
26

ORDINARY RESOLUTIONS
Resolution 4
Resolution not supported by your board
To consider and, if thought fit, to pass the following ordinary
resolutions:
Resolution 4: Shareholder Proposal
That the directors instigate a plan to breakup the Company
so as to realise the commercial values of Masthead brands
and encourage an ethos of shareholder wealth creation in
the endeavours that make up NZME.
27

ORDINARY RESOLUTIONS
Resolution 5
Resolution not supported by your board
To consider and, if thought fit, to pass the following ordinary
resolutions:
Resolution 5: Shareholder Proposal
That the directors acknowledge the importance of dividend
income to shareholders and there be a more appropriate
dividend policy.
28

ORDINARY RESOLUTIONS
Resolution 6
Resolution not supported by your board
To consider and, if thought fit, to pass the following ordinary
resolutions:
Resolution 6: Shareholder Proposal
That the directors obtain the approval of shareholders before
they proceed with any action (costing more than $1 million,
including legal fees) to acquire Stuff.
29

GENERAL BUSINESS
30

Carol Campbell
INDEPENDENT DIRECTOR
31

The information in this presentation is of a general nature and does not constitute financial product
advice, investment advice, legal, financial, tax or any other recommendation or advice. This
presentation constitutes summary information only, and 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 2019.
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.
The Group adopted NZ IFRS16 Leases on 1 January 2019 without restating the full year 2018
comparatives. Operating results as stated throughout this presentation refers to results prior to
adjustments for the adoption of NZ IFRS16 and prior to exceptional items.
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)
give any warranty or representation (express or implied) as to the accuracy, completeness or
reliability of the information contained in it nor take any responsibility for it. The information in this
presentation has not been, and will not be, independently verified or audited.
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