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Intro Oh baby, this is where the action starts You know it's all or nothing We gonna show you what we got Oh baby, this is where the entertainment starts You know it's all or nothing We gonna show you what we got We got it all We're standing tall We got it all We're standing tall We got it all We got it all We got it all You want it, you got it We got it all Welcome to the New Zealand Media and Entertainment Investor Day Good morning and welcome to New Zealand Media and Entertainment's 2021 Investor Day Today we want to share with you why we believe NZME is a leading integrated media company We're delighted today to be able to update you on the significant progress we've made against NZME's strategy that we outlined at this time last year We'll be able to share with you more of what we've done, what we plan to do and the path that we're on to create significant shareholder value We're really pleased with how our teams are working together to bring better audiences and better customer outcomes Now while I'm here in the Newstalk ZB studio today, this Investor Day is a little bit different to last year Today our chairman Barbara Chapman along with members of our executive team will be beaming in from right around the country Unfortunately they're in their homes while we deal with what we expect to be the final stages of the lockdown here in Auckland Let me first run through today's agenda Firstly we'll hear from our chairman Barbara Chapman I've been really delighted with the guidance, the challenge and the support that our chairman and board have provided over the last year I'd then like to provide an update on the NZME business, remind you of our 2023 strategy and provide an update on how we're currently tracking David Mackrell our CFO will join me in the studio here and he'll provide a performance overview and he'll update you on our really strong capital management position It's then time to take a deep dive into our three businesses and their strategic priorities Jason Winstanley will first cover off the audio business Publishing will be introduced by Carolyn Louie with Shane Curry talking about our audiences, Matt Wilson to our subscriber growth and then Carolyn speaking to our advertising customers across both print and digital Finally, Paul Ma will update you on OneRoof's absolutely strong performance and its future strategy I'll then close out with a brief overview and then I'll be joined with Barbara and the executive team to answer your questions So now, let me hand over to Barbara Chapman, the chairman of the NZME board Thank you Michael, greetings, hello to you all and welcome to New Zealand Media and Entertainment's Invested Day for 2021 Today you will hear about an NZME that has significantly transformed itself into a digitally focused media business supported by very strong brands, platforms and people You will see our digital audience and revenue transformation illustrated across all three of our strategic pillars In audio, through our digital audio platform iHeartRadio with its growing content portfolio including significant growth in podcasting In publishing, through the continued growth in subscriber volumes and digital advertising revenue And in OneRoof, through significant growth in digital audiences and digital classifieds revenue Our ambition to be the digital media market leader in New Zealand is being consistently realised across all our brands and platforms supported by our guiding principle of digital acceleration Shortly, Michael, David and the team will give you an in-depth analysis of New Zealand Media and Entertainment's achievements to date and their insights into the opportunities ahead But first, I'd like to give you a brief assessment from the board's perspective of the key determining factors in NZME's performance so far this year The first is a steadfast commitment across the business to our key strategic priorities and to the board's guiding principles which are now firmly embedded into the executive's decision making processes Today you will see the five guiding principles, customer first, win with quality, digital acceleration, audience expansion and top performance in evidence as the team takes you through the business achievements to date this year Like 2020 before it, 2021 has brought with it the challenges of COVID-19 But this time around, businesses and industries are in many ways managing their way through the disruptions of COVID much more positively than in 2020 which has generally been more positive for NZME The experience of last year taught us that there will be a recovery and NZME's best possible strategy is to stay connected to our audiences and our commercial partners In 2021, more of our commercial partners have continued to invest in advertising to stay engaged with their audiences and our teams have stayed connected with those who have been unable to keep investing, supporting them as best they can We know that as business activity returns to more normal levels, those businesses will look to reconnect with their customers and will do so quite quickly Our news and entertainment teams have once more delivered world class content that has continued to connect and engage with New Zealanders, such that NZME continues to break new ground in digital news audiences and across our broadcast platforms Staying true to NZME's purpose of keeping Kiwis in the know during such an extended heightened news period has been a mammoth task Our teams have honoured their commitment to their audiences to keep them informed and to hold decision makers to account And our content teams have been rewarded by the growing number of New Zealanders who are reading their stories, listening to their coverage and importantly, showing the value they place in quality journalism through a subscription to New Zealand Herald Premium NZME's focus on digital acceleration in terms of both audiences and commercial partners is delivering meaningful outcomes Significant growth has been achieved with digital audiences continually setting new benchmarks during the past 12 months in terms of numbers and engagement levels Our drive to deliver NZME's commercial partners the highest performing and most sophisticated digital audience offering in the New Zealand market has won accolades this year with international recognition for data automation and personalisation and data driven advertising This digital acceleration alongside our win with quality approach is being rewarded with pleasing growth in digital revenues, particularly in the current quarter NZME has once again displayed the power of its purpose and its commitment to New Zealand communities In particular, it has utilised its platforms to support the nationwide drive to protect New Zealanders from COVID-19 through high vaccination rates The New Zealand Herald's The 90% Project and the NZME-wide Roll Your Sleeves Up campaign clearly illustrate NZME's commitment to use its unrivalled cross-platform audiences to facilitate the conversations that matter to New Zealanders These initiatives also galvanised many of NZME's commercial partners who were looking for opportunities to support the vaccination programme and the campaigns proudly connected our people, our partners and our communities behind a common purpose If NZME defined 2020 through proving its resilience in a unique and difficult period, then it is well on the way to defining 2021 through accelerating our digital transition Whilst 2021 has brought with it many challenges, it has been a privilege to lead a board that has displayed such a deep commitment to supporting the company, Michael and the NZME team I've mentioned to you previously, along with listed company governance experience, the board also brings extensive corporate financial capability, financial and audit experience, marketing, custom insight and brand expertise and deep media industry knowledge All of which is now well rounded out with strength in digital business growth and data commercialisation Carol Campbell, David Gibson, Sussan Turner, Guy Horrocks and I all remain very much committed to the strategy that is successfully delivering for the company and its shareholders The board has recognised NZME is in a strong capital position and we've been delighted to restart dividend payments this year We see this as a key ingredient of creating shareholder value into the future While large acquisitions are not currently a focus, it's pleasing to note that NZME is now well positioned with the potential to invest where it identifies opportunities to deliver additional and sustainable value growth Any investment would of course be aligned with the strategic priorities and guiding principles that have served NZME so well in recent times As we've stated previously, in the absence of opportunities to invest, NZME will return capital to shareholders It was pleasing to announce this week NZME's intention to undertake an on-market share buyback, which will commence early next year With net debt reduced to zero, well below our target range, the board is pleased to be in a position to support an on-market buyback of up to $30 million The team will update you further on that shortly In conclusion, we're sharing with you today an update that delivers some very pleasing achievements These are, in a large part, reward for a determined focus on our commitment to transform into a digitally focused media business Stay connected with our customers and audiences Continually deliver world-class content And use our platforms to support our communities Before I hand back to Michael, I would like to thank you, NZME's shareholders and investors, on behalf of all of us at NZME Thank you for showing confidence in our strategy and NZME's purpose We've had a lot of supportive commentary from our investors during this year And it's been pleasing that our commitment to engage with you more frequently and in more depth has helped build on the strength of another vitally important connection for our business The one between enterprise and the investor Thank you again for joining us today I'll now hand you back to Michael. Nga mihi nui Thanks Barbara Just a reminder, Barbara will be joining us again for the Q&A at the end of today's presentation I'd like to start by reminding you of a number of the phenomenal brands and the reach that NZME has NZME reaches more than 3.4 million New Zealanders That's 85% of New Zealanders who are over 15 years old It's 92% of all people living in New Zealand's largest city of Auckland NZME has many market-leading brands. These include the New Zealand Herald, Newstalk ZV, ZM and One Roof, to just name a few With these brands, we have significant audiences engaging across news, sports, entertainment and our classifieds platforms Importantly, NZME's digital, audio and print brands and platforms are part of New Zealand's daily habits and everyday lives Research undertaken earlier this year noted that NZME brands and platforms deliver significant audience engagement levels from 6am to 7pm Whether it be waking up to check the news online, commuting to or from work, reading a print publication while having lunch or multitasking, listening to a radio or a podcast, NZME has our audiences and our advertisers covered The last two years have not only been challenging operating environment for our business but it's put real pressure on our people, both personally and professionally

professionally. I feel delighted to see their passion for our purpose, keeping Kiwis in the know. They have worked extremely hard to ensure that New Zealanders remained informed and entertained over this truly phenomenal period. The incredible new cycle and difficult working conditions has meant that our team has had to go above and beyond to deliver for our customers and for our audiences. I'm really proud of them. I want to ensure you that you have a team of 1200 that is committed to your company's purpose and its success. The leaders of your company are focused on ensuring that NZME provides a workplace that fosters innovation, engagement and inclusion and this rests right across three pillars. These include ensuring we promote a healthy, diverse and safe workplace for everyone here at NZME. We want to champion the craft of journalism and broadcasting because it's at the heart of what we do. And finally, we need to equip our people for their future success. I'm pleased that many of our teams and individuals are being recognised on the local and the international stage for their amazing achievements. The NZME executive team is absolutely committed to your business. In recent months, we've been joined by Carolyn Louie and Jason Winstanley. You'll hear more from them both later today. With clear strategic goals being delivered through an integrated business model, your executive is focused on delivering shareholder value. Last year, we introduced you to the 2023 strategic priorities. To remind you, these are NZME becoming New Zealand's leading audio company, the New Zealand Herald expanding its horizon to becoming New Zealand's Herald, and One Roof becoming your complete property destination. Today, we will provide you with in-depth insight into the significant progress we are making on all three of these strategic priorities. Earlier today, Barbara referred to the strategic principles that have guided the development and now the delivery across our strategy. Here are just a few examples of where we are focused on putting the customer first, winning with quality, accelerating our digital transformation, continuing to grow our audience, and being a top performer across the business and for our shareholders. The commitment to our strategy, the delivery of it linked to our strategic principles, and the commitment of our people is seeing market share growth across each of our platforms. Audiences are resonating with our content and our advertisers are accessing the improved reach and capability that we are bringing to them through our integrated sales and delivery model. We are pleased with this momentum. This momentum is also clearly evident as NZME's digital media strategy delivers digital revenue growth across each of its strategic pillars. Digital audio is growing through iHeartRadio. In publishing, it's clearly evident that digital subscribers continue to deliver revenue growth and improved data and personalisation is delivering digital advertising revenue growth. And finally, in OneRoof, as planned, digital revenues are becoming a significant proportion of OneRoof's overall revenue stream. NZME's digital transformation is continuing rapidly. Back in August, we updated you on how advertising revenue trends were tracking and how they were recovering to pre-COVID levels. While the first half of 2021 was below 2019, we noted that June 21 had returned to 2019 levels. While the third quarter was tracking well, the Level 4 lockdown that commenced in August of this year resulted in revenues being lower than 2019, but still up on 2020. Q4 advertising revenues are recovering well. Despite there being significant restrictions in much of New Zealand still, Q4 was expected to be in line with 2020. So in summary, despite the restricted operating environment, fourth quarter revenues have been encouraging. Real estate markets have shown signs of a positive recovery over recent weeks, and Paul will provide you more on that shortly. Our audiences are at record levels. We're seeing this on NewZealandHerald.co.nz and on iHeartRadio as we keep Kiwis in the know. NZME has been adapting to the economic and operating environment as the COVID restrictions have continued. We continue to expect to deliver EBITDA in the range of $63 million to $67 million for the full year of 2021. Encouragingly, we have also begun engagement with Google and Facebook with regards to them accessing and supporting editorial content. I'll now invite NZME's Chief Financial Officer David Mackerel to take you through NZME's financial performance and give you further insights into our really strong capital position. Thank you, Michael. As you'll see from the presentations today, we have a strong focus on our three strategic priorities and on ensuring we continue to grow our digital platforms. Despite the impacts of COVID on last year and again in the latter part of this year, we have achieved a stable level of earnings, halting the previous declining trend. The chart on the left-hand side shows the revenue performance by division. We were on track and focused on returning monthly advertising revenue to 2019 levels in the second half of this year. However, the impacts of COVID restrictions since mid-August have stalled this recovery, albeit revenue is expected to finish ahead of last year. The chart on the right-hand side shows how earnings have been stable with permanent cost-based initiatives implemented last year, continuing to benefit this year. The dark blue bars on the slide show how underlying net profit after tax has been improving each year. One of the themes you will see today is the growth in revenues from our digital platforms and initiatives to accelerate that momentum. The first chart on this slide shows the advertising revenue over the last four years. You can see the impact on print and radio of COVID last year and how radio has recovered while print has stayed flat. Digital advertising revenue growth accelerated in 2021. The chart on the right highlights the growing proportion of digital advertising revenue, which is expected to be around 26% of total advertising revenue this year. While our business is integrated in a number of areas, we recognise that it is useful to consider the performance of the component parts. To enable this, last year we introduced the divisional performance table you see on the slide. Where possible, revenues and costs have been applied directly to each division, but where cost pools relate to multiple divisions, these costs have been allocated on an appropriate basis. The table on the slide has been prepared The table on the slide has been prepared based on the midpoint of our guidance range. The publishing business remains the major contributor to earnings, with an expected EBITDA of $47 million, while the audio division's EBITDA is around $19 million. OneRoof's digital classifieds platform is growing revenue rapidly, albeit the costs of growth result in an EBITDA of around $1 million. The GrabOne business, which was sold at the end of October, had an EBITDA of around $3 million. The other column includes the automotive classifieds platform Driven, our events business, which has had a number of events cancelled again this year due to COVID, and the corporate costs of the group. Turning to our cost base, the chart shows how we have reduced the cost base each year, with the most significant reduction through our largest cost category, people cost. Last year we implemented a number of cost initiatives that resulted in a permanent reduction in the cost base of around $20 million per annum. The permanent cost reductions have been maintained in 2021, however the 2021 cost base is higher than last year due to increased activity and lower temporary savings. At our investor day last year we indicated that GrabOne was not a core strategic focus and that way we were exploring divestment options. In August we announced that we had entered into an agreement to sell GrabOne. The sale was completed on 29 October as planned. The business and assets were sold for $17.5 million, which after settling merchant liabilities and sale costs will result in a net cash inflow of $13.1 million. The automotive sector remains an opportunity. In New Zealand there are 1.3 million change of ownership transactions and 119,000 new vehicles registered each year. Our automotive classifieds platform Driven has a similar number of dealer listings to the largest platform in New Zealand, TradeMe. However, with its private listings and larger audience, TradeMe has a strong market position. Given the size of the New Zealand market and the strong position TradeMe has in the automotive classifieds market, we are reviewing new models based on overseas experience. No significant investment is expected in this area until future models have been evaluated in 2022. This slide shows how we have reduced the level of annual capital expenditure in recent years. This reduction was even more significant in 2020 in response to the uncertain impacts of COVID. Our capital expenditure in 2021 has been more normal and will be at the lower end of our expected annual spend range of between $10 and $12 million per annum. Recent guidelines on the interpretation of accounting standards and regard to costs relating to the implementation of software-as-a-service solutions may result in previously capitalised costs being expensed in the future. Each division's strategic priorities targets improved EBITDA margins in 2023. For audio, improved market share and growing digital revenue on a relatively stable cost base on a relatively stable cost base will improve the margin to between 15 and 17 percent. For the publishing division, a growing subscriber base and increased digital revenue streams will improve the margin. OneRoo's online classifieds business is growing rapidly and will improve margin as it grows scale. With the sale of GrabOne at the end of October, the company has now achieved a net cash position through a strong focus on debt reduction, repaying $100 million over the last three years. The target leverage ratio remains at 0.5 to 1 times the rolling 12 months pre-IFRS 16 EBITDA. The company declared and paid an interim dividend of three cents per share this year, which signalled an intention to return to regular dividend payments. The slide sets out a dividend calculation example based on the company's dividend policy to pay dividends of 30 to 50 percent of free cash flow, subject to being within its target leverage ratio and having regard to capital requirements, operating performance and financial position. The example is based on earnings at the midpoint of our current guidance. The repayment of debt has resulted in a leverage position well below the target range. The board indicated in August that it had been in a position to announce a capital return to shareholders but paused as a result of the uncertainty of COVID-related restrictions. With a clearer business outlook and the successful completion of the GrabOne sale, the board intends to undertake an on-market share buyback of up to $30 million which will commence in early 2022. Further details and the required disclosure statement will be provided to shareholders before the end of the year. I'll now hand back to Michael. As I mentioned earlier, we are focusing today's presentation on our three strategic priorities. Shortly, our Chief Radio Officer Jason Winstanley will guide you through our radio and digital audio strategy. Jason recently joined the NZME executive team. In his most recent role as Head of Talk for NZME, Jason has led Newstalk ZB to record audience growth and continued commercial success. Prior to that, he held roles with our high-profile music brands ZM and The Hits. I've been delighted to make this appointment from within NZME. Here's some reflections from Jason. Hi, my name's Jason Winstanley. I'm the Chief Radio Officer at NZME and look after all of the audio content that comes out of our radio stations and out of our iHeartRadio platform. What excites me about my role is I love radio. I love the medium, I always have, but I also love the people and what they do each day. I've loved the fact in the last couple of years the importance that radio has played in Kiwi's lives as we've gone through these crazy times. We've been there right next to audiences and have kept them informed with what's going on, giving them some light relief. We've also been right beside our commercial partners who have been, a lot of them, going through some pretty tough times. The key feature that I think has set NZME up for success this year is our people. Our people have done an amazing job of adapting to the crazy situations that they've been put in and have done a really good job of communicating that and standing alongside our audiences and again supporting our commercial partners throughout. Look, our people are really good at adapting to situations but they're also really disciplined with what they do.

They craft out every day great audio, great radio programs, great podcasts, but at the same stage are able to bring in some creativity, but that discipline that they bring to the job is really critical to ensure that we are successful. I think NZME has been quick to adapt with everything we've done and everything that's been thrown at us. I think our people have been at the heart of that, but I also think our content offering across the board, being able to reflect what is going on for audiences everywhere and also really reflect what has been going on for our commercial partners and help them and support them where we can. Thanks Michael. I'm delighted to have recently been appointed to the role of Chief Radio Officer across NZME and I'm excited about the opportunities we have. Before I take you through some background information, I'd like to remind you of our most recent performance and the scorecard with our 2023 targets. I'll shortly take you through the improved performance we are seeing in the NZME share of audience, and I'm pleased to point out that the remaining metrics are tracking well towards our 2023 targets. Let me now take you through some background information regarding global and local audio trends. It's clear from this chart that broadcast radio listening has been very stable and as you'll see, digital audio is growing the overall audio reach. This US data notes that 83% of Americans continue to listen to broadcast radio on a weekly basis. This has been supplemented by the digital or online audio listening. Podcast listenership has really accelerated in recent years as well. In the New Zealand market in particular, broadcast radio remains a significant channel with over 3.7 million New Zealanders tuning in each week. This has continued to grow in recent years. It's particularly strong in the daytime. As you can see here on the right, at breakfast time, 47% of New Zealanders are consuming radio. That is more than twice any other medium at that time. On a global level, radio's share of advertising is stable and in the United States is forecast to be at 5.5% of total advertising spend in 2021. The US podcast industry has seen rapid and significant growth. It is forecast to reach US $1 billion this year and double by 2023. The growth of podcasting and the opportunity available for NZME is a theme you'll see throughout our presentation today. Historically, the New Zealand radio market has been very stable. We have been impacted by COVID-19 this year, but we are expecting to be up around 8% year on year. One of the things to note when we compare ourselves globally is that New Zealand radio direct revenue sits at around 70% versus agency revenue, which is around 30%. In a market like Australia, this is reversed, with agency revenue being the dominant share of revenue. This is partly due to the fact that TV is not localized here in New Zealand, while radio is. This is a big advantage for us here in New Zealand. We support this direct share of revenue with local sales and broadcast teams. New Zealand digital radio revenue continues to grow. iHeartRadio revenue here is greater as IAB numbers are estimated, whereas iHeartRadio is based on our actual reported revenues. Podcast revenue remains unreported by IAB, however, it represents an exhilarating opportunity in international markets, and we believe it will be here in New Zealand also. Let me now take you through our 2023 strategy and areas of focus. Here's a reminder of our three strategic priorities for audio. We will create New Zealand's best local audio content, grow broadcast and digital reach, and grow market revenue share and digital revenue. Firstly, let's look at creating New Zealand's best local audio content. Our radio audience is very stable, as you can see on the left chart, with NZME brands reaching over 1.9 million listeners each week. It has been a phenomenal year for talk radio globally, given the news cycle and the global pandemic, and that is no different here in New Zealand, where we have seen large growth for our talk brand, Newstalk ZB. In the middle chart, you can see how Newstalk ZB is taking a larger share of overall radio listenership, and it remains the number one radio station in New Zealand. In 2020, we made a significant number of changes to our music brands. Given this, and the movement of audiences to talk, we have seen a reduction in music radio listenership. We are, however, seeing strong signs of improvement from the changes we made. I'll take you through these now. The most important day part for any radio station is breakfast, and that is where we have seen the impact of our content changes last year. Our 2554 share of listening at breakfast has steadily increased, with breakfast show audience growth across seven of the nine radio brands. Our top 40 brand, ZM, has taken out the number one position, and our talk brand, Newstalk ZB, at number two in the 2554 breakfast show demographic. By gaining and engaging listeners at breakfast, we can now focus on engaging listeners longer and across further day parts, thereby increasing overall share. Digital listening is also going from strength to strength, with our iHeartRadio monthly total listening hours up 17% year on year. The content strategy we implemented last year is working. This chart highlights, by radio brand, the average age from left to right, and with more female listeners on the bottom and more male listeners on the top. Obviously, the size of the bubble represents the number of listeners. On this chart, the gray bubbles are where we were at the start of 2020, prior to the implementation of the 2023 strategy changes. The purple bubbles are where we are now. You can see strong growth for both Newstalk ZB and ZM, the down-aging of Coast, and the repositioning of Flavor, which has moved the audience profile to where we want it to be. Using the same chart format, we now compare where NZME brands currently sit versus MediaWorks brands. Our focus remains on the key 25 to 54 demographic, and maximizing our opportunities. You'll see that there remains a clear opportunity for NZME in this space versus our competition. We are pleased with the content changes we made last year, ensuring we have a brand portfolio that covers all core demographics from 18 to 64 and beyond. iHeartRadio is New Zealand's leading advertising-funded, single-source audio application, and a platform we are really proud to be part of. I want to highlight the progress we have made in the digital audio space, and with the increased focus on three digital brands over the last year, the iHeart Podcast Network, Kik, and the Alternative Commentary Collective, also known as the ACC. These brands deliver content over podcasts, youth, and sports entertainment, and I'll talk more about these exciting opportunities shortly. Show hosts are incredibly important to our brands, and they are a key differentiator from our broadcasting competitors and other global content platforms. It's about local voices telling local stories. We made significant change last year as part of our content strategy. In fact, in 2020, 17 out of our 36 network shows changed. This year, there were only two changes, as consistency is now key. Identifying, attracting, and retaining the best talent is key to our success. Let's now turn back to the bubble charts again. In this chart, the grey bubbles are where we currently sit, the purple is where we are moving our brands to focus, and the target expected audience. The bubbles are bigger, with more listeners, and a number of brands, specifically the Hits and Post, are moving to close the age gap. In a post-COVID world, we expect the Newstalk ZB audience performance to normalize as listeners return to our music formats. We will drive further incremental revenue from growth in the 25-54 demographic. Now let's move on to podcasting and how we are focusing on producing the best local audio content. Over the past 12 months, we have focused on growing our content library, and we are now New Zealand's leading local podcaster with four key areas of focus. Audio on-demand content, which is produced by our local radio shows. Podcast originals, which include the Leighton Smith podcast and Cooking the Books. New Zealand Herald podcasts, similar to what the New York Times are doing, with content that supports key editorial verticals. And two emerging brands, the ACC and Kick, as mentioned earlier. The Alternative Commentary Collective is our local version of the successful US Barstool sports business. The ACC is an ensemble cast of well-known New Zealand comedians and entertainers presenting an alternative take on sport. They have a very loyal audience of traditionally hard-to-get young males, which we see as having a lot of revenue upside. We see the ACC as the future of sports entertainment in New Zealand, and as part of our strategy, we have established strong partnerships with TVNZ, Sky TV, and Spark Sport. Kick is a by-youth, for-youth digital audio brand, and is now a critical component of our youth strategy. When establishing Kick, a team of young people were incubated as part of the project. They had access to all of NZME's resources, with the main NZME corporate input focused on ensuring the project wasn't getting us into any legal trouble. This truly was a by-youth, for-youth project, and we're really pleased with its early success. It was soft-launched in 2021 to incubate new youth content formats and strategies, providing a feeder system of audience, content tactics, and talent to NZME's wider audio business. We are really excited by the opportunity that Kick represents. Audiences have loved the format, and advertisers are eager to access a youth offering. In 2022, we will drive more multi-platform content from Kick, including youth news, podcasts, and music playlists. Kick and ACC provide incredible digital audio and podcast opportunities. NZME's podcasts are growing in popularity, reaching a record high in October 2021 of 2.36 million listens. That's downloads, plays, and streams. In the first Triton NZ pod ranker released in September this year, NZME's local content, and combined with the iHeartRadio US content, had a total of 3.2 million downloads for the month, which is four times the next competitor. We have the largest offering of podcast inventory and opportunities for advertisers and market. Looking at pod track from the US, you can see that iHeartRadio in the US dominates with unique monthly audience, streams, and downloads. They are followed at some distance by news and entertainment shows. Looking out to the right, you can see that NZME has brands and content that align with what the US audiences are listening to. This gives us a significant competitive advantage over other local producers as we use our local content production combined with iHeartRadio's international content. As you can see, digital is now giving us more access to audiences and we are meeting them in the places they are now and will be in the future. We are really excited in 2022 to be onboarding the iHeartRadio music playlist feature, allowing users to build their own playlists. This also unlocks the ability for us to have branded listening experiences for our current brands and clients. We will be able to take these new offerings and promote them nationally via our radio brands, nzherald.co.nz, and the rest of our media assets. Our relationship with iHeartRadio provides us market-leading capability for audiences and advertisers. Here is a list of some of the functionality available on the iHeartRadio platform. We have noted with green the functionality we currently have live in market, plus the new capability that is coming in 2022. As I mentioned earlier about meeting audiences where they are, iHeartRadio comes with 250 native integrations with key integrations in car and on smart speakers. Our smart speaker listeners, while still relatively small at present, are our heaviest users and we know the segment will grow over the next few years as it has in many global markets. As I said earlier, iHeartRadio is a platform we are really proud to be part of, allowing us to showcase the local audio content we produce, plus more. Our second pillar of being New Zealand's leading audio company is to grow broadcast and digital reach. Over the past 12 months, we have made great progress in extending our national reach and now have 38% of commercial frequencies in New Zealand. We have operationalised our Northland frequencies to give us increased coverage in Northland and acquired frequencies in Christchurch and Nelson.

While we are limited with broadcast reach in a number of markets, we utilize iHeartRadio nationally to ensure we can service all New Zealanders, as well as those who are interested in the NZME's locally produced content internationally. Our audiences on iHeartRadio are at an all-time high. Most of the growth in listening is coming from new devices, especially mobile and smart speakers. This is really exciting for radio as it's never been more accessible. Everyone now has a radio on them at every waking moment. The majority of time spent using iHeartRadio listening is to one of our live stations, which again shows the power of our brands and our locally produced content. To ensure we gain maximum digital reach, we make our content available where audiences are, so all our podcast content is pushed out to all podcatchers. iHeartRadio operates as a podcatcher, and we have seen this become the largest platform for NZME's content as audiences consume our content in-app. We are keeping our listeners heavily engaged in our ecosystem of platforms. This is our eyes-to-ears strategy. We continue to leverage all our own platforms, including the New Zealand Herald, OneRoof, and our audio websites to drive content and show promotion. NZME's platforms reach 3.4 million New Zealanders, and this is invaluable in growing audiences. In turn, this enables us to register users to fully utilize our platform and increase engagement. Radio in 2021 is more than just what comes out of the speakers. At NZME, we are uniquely positioned here in New Zealand across multiple touchpoints to grow audiences and engagement. Finally, our third strategic pillar is to grow market revenue share and digital revenue. Our revenue share exceeds our audience share in all of the measured markets and continues to grow. Over two-thirds of our revenue comes from multi-platform customers. This remains a competitive advantage as integrated campaigns can utilize NZME's diverse audience reach. Regional New Zealand remains a significant opportunity for us and an area of focus with recent investment in resourcing both on-air and off. We are seeing good growth in digital radio revenue where we are the leading proposition in market. iHeart Radio functionality, which allows targeting based on NZME's knowledge of behaviors or demographic profiles, is a compelling proposition. So is targeting by time or geographic location. This was recently used by an advertiser to automatically notify listeners of local surf conditions based on their current location. Because we can transact radio digitally, it is creating many new opportunities for clients and a better listening experience for listeners. And finally, an example of our multi-platform integration. HP Business Class was a partnership between Newstalk ZB and HP creating a series that was the story of New Zealand business. The content played out on radio, became a podcast, and was supported across all our digital and social assets. A real win for the businesses featured, our audiences, and our partner HP. The campaign won the International News Media Association Global Award for Best Use of Audio in 2021. The strategy is strong and we are seeing good indicators of success. We are heading in the right direction and on range for our targets in 2023. Our over-performance in revenue share continues to demonstrate that customers in the market know NZME's brands and cross-platform integration is compelling and that we know what we are doing. Let me now leave you with some further insights into NZME's audio brands and people. Radio is something where you connect with people straight away. Anything can happen in the moment and then it's out there. We keep it real, we keep it 100. iHeartRadio connects us because you can be listening to any station you like at the touch of a button. I truly believe radio connects us. It makes you laugh, it makes you cry, it makes you feel alive. It doesn't matter who you are you are connected to radio. Turn me up, turn me up, turn me up. Turn me up, turn me up, turn me up. Turn me up, turn me up, turn me up. I truly believe radio connects us. It makes you laugh, it makes you cry, it makes you feel alive. It doesn't matter who you are, everyone needs radio. Thank you Jason. Just a reminder Jason and the other executives and Barbara presenting today will join us at the end of today's sessions for a Q&A. We'll now turn to our publishing strategy which we've segmented into three sections focused on our audience, our subscribers and advertising. I'm now pleased to introduce NZME's Chief Digital and Publishing Officer Carolyn Lui who will kick off our publishing strategy. While Carolyn was an executive with NZME some time ago, she's recently held executive leadership positions with MYOB and Vodafone. So I'm delighted to have her back with us. Here's a few initial thoughts from Carolyn. I'm Carolyn Lui, the Chief Digital and Publishing Officer at NZME. The thing that excites me most about my role at NZME is bringing together the diverse parts of the publishing business to focus on audiences and customers and keeping them in the know. We have an incredible opportunity to drive growth in the future by growing our premium subscriber customer base, by continuing to build our data capability and enriching our portfolio of digital advertising products. The key feature that has set NZME up for success this year so far is our unique assets across our brands, our platforms and our digital and data capabilities. This has meant that we've been perfectly placed to take advantage of Kiwi's thirst for information and knowledge in what has been a huge news year. Our greatest achievement over the last 12 months is our people have continued to deliver with commitment and passion, not only delivering the news but building great user experiences. It's been great over the last few months to get to know them and I've been super impressed by the pride that they take in their roles in keeping Kiwis in the know. Thank you, Michael. I'm excited to be back at NZME after having been away for a number of years with other digitally focused businesses. It's really pleasing to be leading NZME's digital and publishing business. Today I'm going to update you on NZME's publishing strategy to become New Zealand's herald. To update you on the progress we've made over the last 12 months and our strategic themes. I'll be joined by Shane Currie and Matt Wilson to cover the audience and subscriber strategic pillars. Over the last 12 months, we've made strong progress against each of our publishing scorecard metrics. We've seen strong growth in subscribers with a growing mix of digital subscribers and increased household penetration. Our advertising mix has changed, particularly with the growth in digital revenues from customers change in operations and marketing mix during COVID. And our EBITDA performance has been solid despite the challenges COVID has presented. The publishing business is a digital centric business focused on growing our digital subscriber customer base. This will be a key driver of annual recurring revenue growth and EBITDA in the future. The publishing operating model has evolved from a print model to a print centric model to today's digital centric hybrid model. This means from an audience perspective, we are servicing three products. A free digital content product, a paid digital content product and a print product. From a revenue perspective, we have four revenue streams, digital subscribers, digital advertisers, print subscribers and print advertisers, each at a different level of maturity. As a result, our current operating model has a level of complexity and increased overhead, driving the need for simplification to be fit for purpose in the future. Our publishing strategy is focused on the New Zealand Herald being New Zealand's Herald and is built on three strategic pillars. Our audience strategy is focused on being the number one news brand for all New Zealanders. While our subscriber strategy is focused on being subscriber first. And our advertising strategy is to be a safe, scalable destination for advertisers. We've added a new enabler to our strategy, simplification, that will focus on simplifying and automating our operating model to support a more nimble business in the future and create capacity for investment and growth. I will now hand over to Shane Currie, Managing Editor, to talk through our audience strategy pillar. But first, here's a few thoughts from Shane. Kia ora, I'm Shane Currie. I'm the Managing Editor of NZME, responsible for almost 300 journalists and editorial staff and our news strategy across the day and across the week. As NZME Managing Editor, the thing that excites me most about the role is being on the front line each day and hearing our stories. Listening to the audience and being, I guess, at the forefront of a very busy news period in which, you know, we've led the charge on explaining to New Zealanders what's going on in this pandemic era. The thing that excites me the most about my role is being, I guess, in the heart of the news operation and being at the forefront of what's been an incredibly busy period for the last 12 months. Our journalists are hearing New Zealanders' stories, seeking to make a difference, really, in their everyday lives as we get through this pandemic. The key success for NZME is really that we're uniquely placed in the New Zealand media environment and that we've got all the platforms available to us to be able to tell our stories. You know, we're a digitally focused company, but with this amazing depth of websites, newspapers, radio stations. And so New Zealand is really only a fingertip away from our journalism every day. So if we look at the last 12 months, the greatest achievement for us as a newsroom is really leading the charge, I guess, on the response to the pandemic. The 90% Project is a particularly proud moment for us. It's the role of journalism and journalists to really set the agenda, lead the debate and discussion. And when the government wasn't setting vaccine targets, we looked at that really closely and thought, OK, we've got a job to do here. And so the 90% Project, in which we wanted New Zealanders, most New Zealanders vaccinated by Christmas, has been a huge success and was ultimately picked up by the government. Well, thank you, Carolyn. It's a privilege to be back in front of you today to talk about our journalism and what we've achieved over the last 12 months and more importantly, what we're looking forward to over the next 18 months or so. It's a hugely important time for us in the newsroom, a hugely important time for us as journalists, particularly in a world where it's very highly polarised, it's very noisy, there's a lot of confusion going on. So we see ourselves playing a hugely important role in unravelling a lot of that, making sure that our audiences clearly know what's going on in the world, particularly in the post-pandemic era. We also have a major responsibility to ensure our journalism is fair, balanced and accurate. And you'll hear a lot of those themes come through from me today around a new focus for our newsrooms on ensuring that our trust and quality metrics are at the forefront of our minds when it comes to our planning and execution as we go forward in the next 18 months. We've also got some very exciting plans, strategies and tactics to build our underserved audiences, particularly in the age groups, ethnicities and geographic regions around New Zealand. I thought I'd touch on firstly just where we're at today as a business and as a newsroom in particular. And led by our two powerhouse news brands, the New Zealand Herald and Newstalk ZB, we're actually sitting at some record audience numbers. The New Zealand Herald, for example, is now at 2.24 million people a month. As I say, that's a big number. That's a record number and one that we want to sustain and carry on for the next 18 months, but particularly looking to build engagement and drawing more of that mass audience through into becoming loyal brand followers and eventually subscribers who are willing to pay and engage with our journalism each day. As I said in my introductory video, we're a digitally focused newsroom with this amazing suite of platforms available to us. And that's where NZME is uniquely placed. We have great websites, great apps, wonderful newspapers and a radio station that's flying on its foils. And within that, we've got all the storytelling platforms available to us, such as audio and video. That gives us the ability to really deliver the news 24-7. Our audience has our news and our content at their fingertips any time of the day. We're proud, as you can see in that middle column, that our journalism and our broadcasting has led to some major national and international recognition over the last 18 months. And our plans today that you'll see are all designed to ensure that that momentum continues. We've also spent a lot of time in the last two years on building our industry partnerships, not just from a content perspective, but making sure that we're working collaboratively with other partners to ensure we're building future journalists and our future storytellers. And I'll touch on that very shortly as well. But those content partnerships also allow us to allow our journalists to focus on other content that's unique and distinctive to NZME. By the likes of Radio New Zealand providing commodity style news, our own journalists can focus on their exclusive investigations, their premium reads, their feature interviews and so forth. And that's a really important component to us as a newsroom. So there are four key principles underlying all that you will hear from me today. The first is audience expansion, and that's not just reach. We know that we're already reaching a lot of New Zealanders, but it's also serving the underserved audiences, the age groups, the ethnicities and the geographic regions that we know that we can reach.

and build up our audience engagement on. I sat here 12 months ago and talked about our investment in our Christchurch and Wellington neuterings, and that's already been paying dividends in terms of audience growth. And we believe that that momentum will continue into the next two years as well. Our multimedia platform storytelling, as I said, we're uniquely placed to be able to tell our stories across every platform available. And it's our job to make sure that in our planning and execution that we know which stories work best and when. And so with the help of data analytics, we'll be making sure that we're identifying those periods and those platforms that really do engage our new audiences. And quality is at the heart of all that we do. We know that trust and credibility are such crucial metrics in this day and age, particularly in this age of misinformation and fake news and all that goes on in social media. The Herald has 158 years of brand loyalty behind it, and we really want to build on those amazing foundations to ensure that our journalism sustains into the future. And the fourth pillar is our digital tools and technology, whether it's the mobile phones that our reporters are using on the frontline, true to the artificial intelligent tools in the newsroom or the data analytics that are available for our editors. We know that a lot of this will free up our journalists to work on those exclusive, in-depth and distinctive investigations that again, will draw in even more audiences and engage them for longer. And straight off the bat, I wanted to talk about three amazing projects that we've either already launched or about to launch at NZME. The first is Kahu, which is our new Māori storytelling platform. It's part of nzherald.co.nz, but it's been a very pivotal moment for us at NZME in making sure that we're showcasing all the amazing Māori storytelling available to us. But it's also more than that. It's more than a content platform. It's also about a learning and development programme so that our staff are totally aware of Māori protocol and tikanga as they approach stories. It's about staff content and staff diversity, making sure that we're covering all of New Zealand and all its wonderful forms across the country and all the different stories that are available to be told. The second is Tarito, and that's our new cadetship programme in collaboration with News Hub, Māori Television and the Pacific Media Network. And that will see us introduce and welcome early next year, 25 cadets to our industry. They'll all be housed initially, or 15 of them at least, at NZME in central Auckland. And from there, over the course of 12 months, they will learn everything about the craft of journalism and broadcasting. They'll be working in newsrooms across the country. And by the end of the period, we expect 25 brilliant new journalists in the industry and working for any number of companies, including our own. We really did want to take back ownership of journalism training in this country. And with the help of our three partners, what we're creating here is a brilliant pathway to ensure that the craft of journalism is sustained well into the future. And the third great programme is Open Justice. This is a publicly funded programme, which will see 15 new journalists join NZME in early 2022, to specifically cover court and legal cases and industry developments across the country. This really does play to our geographic intentions and making sure that we're well represented across the whole country. And in partnership with Allied Press, and you can see the small map there on the slide, we'll see that we have the country covered from Northland to Southland. And we see only great growth initiatives as a result of that new programme. And then talking more specifically about our own current local and community connections. Last year, I talked about New Zealand's Herald, and we've certainly made great progress in terms of our community titles. A new operating model is about to come into play that will see them centralised under one leadership model that will give them greater resource and attention and make sure that they're operating as well as possible as we build them towards a digitally sustainable future. We know that both our regional and our community titles are just so vital in terms of that local community connection. They really are our grassroots newsrooms where we're talking to our audiences, telling their stories, and being a platform for advertisers and clients that, you know, in most cases, there's nothing else available for them to be able to be told. And then, as I talk about age groups, I'm proud to announce that today we're announcing a new NZE Youth News brand will launch in the new year. We're tentatively titled it Kick News. That is a working title, a conceptual title, if you like. But we know that we already have a wonderful base of younger readers, viewers, and listeners upon which to build. You can see from that statistic that there's almost 400,000 young people already tuning into nzherald.co.nz every month. And we see just huge potential in expanding that audience through its own unique Youth News brand. We've also had wonderful initiatives across premium with our Premium in Schools program. So more than 500 schools have taken up the opportunity to ensure that they're reading the very best herald journalism while they're in class or in library. And we've launched the likes of In the Loop, which is a youth podcast targeting the 18 to 29-year-olds with a weekly podcast looking at the best of the week's news but through a Youth News perspective. And of course, we mustn't forget our newspapers. There's still a substantial number of young people who are picking up the newspaper across the week. And we know that that's an important base upon which to build our new Youth brand. Of course, the most important thing about the new Youth brand is that I won't be directly involved in it other than giving support through pastoral care and legal support and so forth to the team that will be kicking it off. It's really important that it is run by the youth for the youth, the rangatahi for the rangatahi. We know that it will be on platforms that people in that age group expect to see it on. And some of those platforms won't have even been devised yet. So we're really open and flexible around the type of content that they'll be pursuing and how it will be distributed. But it's an exciting opportunity to really build our future news audiences, our future subscribers, and get them into that news habit at a very early age. I talked earlier about the multimedia platforms that are available to us, and here's three examples. Through our video storytelling, our audio and podcasts, and our data journalism. We've just relaunched New Zealand Herald Focus, which is a short form and live, short clip video news service distributed across our news stories every morning and at lunchtime. And we're already seeing great engagement led by Cherie Kinnear, who has come across from our sports department. We only see that new model growing from strength to strength. And then in the podcast space, there's four examples there on the screen of what we've launched in the past 12 months, many more exciting developments to come. And right now we're scoping a new New Zealand Herald News podcast that we'll distribute each morning, particularly aimed at the commuter market. The podcast market is still in its infancy and very much in New Zealand, but there's such a huge potential for it. We know that it builds up a younger and loyal audience. And you've seen from the likes of In The Loop already, just the high engagement that the younger people are listening to our podcast execution. On data journalism, that's really come to the fore, particularly since the outbreak of the COVID Delta virus in New Zealand. We've had access in the last several months to data that's not been made public before, and our data journalists have been able to present that in daily scorecards, daily graphs and maps. That's really engaged and resonated with our audiences. And so with the help of some more public money, we expect that our data journalism unit will grow from strength to strength in the next 18 months. I've talked a lot today about building engagement, and I'm really excited to announce that we'll shortly be personalising the New Zealand Herald experience a lot more strongly. That means individual bespoke stories for users based on their browsing behaviour and the topics and themes that they're interested in. So very soon, in fact, in the next few weeks, there'll be spots on the Herald website that will have stories that are different for each individual user. So somebody in Auckland might be reading about a motorway story or a traffic incident, whereas the person in Wellington might be reading about the weather or a sports report. What we're trying to do here is personalise the experience so that we're keeping our readers on the site for longer, that they're engaging more frequently, and that they're reading news that's relevant to them. And then early in 2022, we're going one step further and really ramping up the personalisation. So there will be a separate module or section of the website with up to six stories that are individually curated for individual users. And that's based, again, on what you've been reading about previously, the topics that you're interested in. And that will come directly under all the main news of the day. And as I say, the goal there is to build engagement and to make sure that the New Zealand Herald is providing relevant, up-to-date, and obviously quality and trusted content to our users. Personalisation doesn't just stop at the website, we're also personalising newsletters and giving our readers the option to choose newsletters with topics and issues of interest to them. Again, that can be based on their previous browsing behaviour and having the option to pick and choose the topics and themes that they're interested in. And furthermore, and we know that access to our journalists and the amazing knowledge that they have on different topics is really a key component to our subscriber strategy. The likes of Q&As, special events on major topics, and giving our readers access to what's behind the scenes in the newsroom and what's going on with a lot of the different issues and topics of the day really does resonate and helps further build that engagement and connection with the Herald. So we're really excited that the personalisation journey is underway and will only be enhanced in the next 12 months. I've also talked a lot today about trust and credibility and quality being at the heart of all that we do. Our distinctive premium journalism will sustain us well into the future. And so for our newsroom, that means looking at just more than just the number of people who are coming to read us each day, the number of sessions that they engage in. It's more about the engagement metrics that tell us how long are they staying for? How many stories are they reading? Are they becoming subscribers? Are we retaining them as subscribers? So all those different types of metrics become much more critical for us in the newsroom and will actually drive and change newsroom behaviour, typically in the planning and execution of the different stories and the way that we present them each day. We're really proud that the New Zealand Herald is New Zealand's most trusted publisher. That's measured by two independent surveys by both AUT and New Zealand On Air. And we see that as a great foundation upon which to build even greater trust, particularly, as I say, in this age of fake news and misinformation that's often distributed by the social media platforms. The Herald really does have a role to play here in sorting out the fact from the fiction, making sure that we're providing New Zealanders with factual quality news that's curated and carefully checked. And the next slide here is a great example of some of the quality journalism that we've unveiled in the last 12 months. Sure, we've had the COVID bump and that's driven a lot of our audience growth over that period, but that's also been matched by this wonderful range of stories, and this is by no means an exhaustive list, across a range of important topics, whether it's news, sport, business, politics, life and style, entertainment. Our teams are all working really hard to make sure that the audience experience as a whole is complete. We love to celebrate when our teams are winning. We love to work with business and understand their concerns in a time of crisis. We like to explain to parents the difference between private schools and public schools and which is best. And when New Zealand's housing affordability comes out of control, what we can do as a media organisation and as a newsroom to start offering some solutions to would-be first home buyers. If New Zealand's health system is in disarray, what are some of the solutions that we can raise and debate and discussion to be had in terms of solving that? So these are all great examples of that, and there's many more plans in the pipeline to ensure that that journalistic endeavour is maintained in the next 18 months. And before I leave the content slides, I also wanted to talk specifically about our NZME 90% project. As I said in my introductory video, this is a campaign that we've been particularly proud of in the last three months. We knew that when the government wasn't setting a vaccine target for the country, that we had a role and a responsibility to play as a media organisation that having talked to experts, looked at the overseas experience, that there was something that New Zealanders could try to achieve. And so the 90% project was born from NZME, from a whole range of people across, not just the newsroom, but across the business. And I'm really proud to say that just in the last few weeks, the country has actually achieved the first jab 90% rate, and we expect the second jab 90% target to be reached in the coming weeks. We've had wonderful support from our partners. We've had some incredible journalism and storytelling as a result of the project. And importantly, the government just recently picked up the target itself. And so that really does play into our role and responsibility as a major media organisation to set that national conversation, to identify some of the shortcomings at times when there does need to be a public conversation and with facts need to be debated. And so the 90% project for us will be a marker in the sand as one of the great pieces of editorial content and broader content pieces that we've ever done and achieved at NZME. And then I wanted to lift the hood a little bit on the newsroom engine and explain just how we will re-engineer things, if you like, around focusing on the premium content and making sure that we are drawing in even more subscribers with exclusive, unique content. So if you look at this graph on the left-hand side is the now, which is the free material, the breaking news that we must be urgent on and first with, the partner and publicly funded content that will always remain free to our audience. We'll also make sure that we're maintaining those record numbers of people who are coming to us at the moment. But increasingly, we want the newsroom focused on that right-hand column, the new, the premium content, the explainers, the analytical journalism, the investigations, the premium features and interviews. And so with the help of data, we'll be identifying new topics, new issues that really are resonating.

New Zealanders, especially as we enter a post-pandemic world and knowing that a lot of life will have changed for Kiwis as we head into 2022 and beyond. There'll be a lot of stories that are ripe to be told, both personal stories and more common themes and issues that the newsroom needs to tackle. We're really excited about that, and we're really excited that we'll be able to focus our guns and our attention on that right-hand column and making sure that we're building a thoroughly quality-led and digitally-driven premium subscription service that's already been so successful in its first two years. Then before I hand over to Matt, I wanted to touch on the tools and technology. We've already delivered in 2021 a wonderful menu of new tools, including an artificial intelligent tool that helps us distribute our journalism and content across social media platforms. We've also introduced commenting for premium subscribers. The premium subscribers who are now using that commenting tool are actually staying with us for up to 12 or 13 minutes every time they come to the site. It's tools and technology like that that not just allows us to build that audience engagement, but frees up our journalists to focus on unique content. It does away with some of the more mundane tasks, if you like, and allows both our frontline reporters, our producers, and editors to focus on what really matters. And then in 2022 and beyond, there's a whole range of exciting things to come for us in the newsroom. There's a new content management system, so the journalists themselves will be working on a much easier tool to be able to produce their stories. We'll be able to have an AI tool that gives us headline and image recommendations, and we'll be able to measure them against one another to see which one works best with our audiences. All of that automation, all of those new recommendation engines, all of that personalization just plays to us offering the best experience possible for our audiences and frees up the newsroom to focus, as I say, on what's really important. And to talk more about our subscribers and our subscription strategy, I'll hand over to Matt Wilson now, our Chief Operations Officer, and I thank you and I'll see you at the Q&A. G'day. I'm Matt Wilson. I'm the Chief Operations Officer at NZME. The thing that excites me the most about my role, one is the variety across printing, distribution, customer service, properties, and advertising production. So every day is different, lots of different skills, lots of interactions, and being the centrepiece between the content producers and the advertising teams means I'm involved every day in bringing the news and keeping Kiwis in the know. I never have a dull day in my role, whether it's adjusted by a quickly changing news agenda or new product launches or changing environment based in New Zealand at the moment due to COVID restrictions or things like that. Every day is different and every day is very exciting. The key is to have a great team and a team right across the board that knows what they're doing, is in touch with our customers, in touch with our advertising needs, and that is crucial. It gives us an ability to adapt quickly and make sure we deliver on our purpose. The key feature of NZME that has set it up for success this year has been the extraordinary team we have with significant skills and experience that have enabled us to adapt to the ever-changing landscape of our customers and environment this year. The key factor really is having a terrific team, a team with the skills and the knowledge that are really attuned to our customer needs. That gives them the ability to be adaptable, to be agile, and learn new ways of working, new ways to meet our customer needs. That's really the key to it. Confidence that we know what we're doing, confidence that we know our customers and that we can operate in a number of different environments and still deliver on our purpose. That has been absolutely key to our success this year. Thank you, Shane. It's my pleasure to talk to you about our Subscriber First pull-up of our publishing strategy. To recap, last year we established subscriber growth targets through to 2025. These targets are for digital subscriptions to exceed print in 2023 and for all subscribers to total 210,000 by the end of that year also. Looking further out to 2025, we set a growth target to have more than 15% of New Zealand households subscribing, which is roughly 70% growth over where we finished last year. I'm pleased to say that we are on track to achieve these targets. Let me first update you on maintaining our substantial print subscriber base. We have maintained subscriber revenue for a continued focus on acquisition, retention and yield optimization. This trend can be seen with the green bars on the graph on the left. A key component to maintaining subscriber revenue has been constantly encouraging our eligible print subscribers to activate the use of premium digital. As you can see from the graph on the right, we have maintained the growth and now have over 70% of our five, six and seven day print subscribers that have activated their free digital access. We see this as key to both enhancing the print subscriber value proposition, which has helped reduce churn and support yield growth, as well as providing our print readers with a pathway to digital. Retail sales revenue has continued its trend decline rate and now makes up only 22% of our total print reader revenue. This year has seen a significant increase in the amount of time people are spending at home. We have utilized NZME's full audience across all our mediums and databases to promote the home delivery print experience. As you can see from the graph on the left, this has resulted in an increase in the percentage of our subscriptions that have been bought by the inbound channel rather than being sold through a trial. This improved quality of acquisition combined with increasing digital activations has helped improve subscriber retention two percentage points. And we now have over 77% of our print subscribers that have been with us for more than three years and have high retention rates. A key component to maintaining subscriber revenue is optimizing yield growth. We have continued our approach to annually increase cover price, which in turn increases our upper subscription price, and to review all subscriber pricing on their anniversary with the aim to grow yield while not promoting additional churn. Let's now focus on how digital subscriptions have performed this year. The strong news agenda, improved funnel performance and special offers have continued to drive subscriber growth. We now have more than 78,500 premium digital subscribers, which is 59% higher than this time last year. And total premium, including digital and title print subscribers, is now just over 135,500. In the last year, we've had two major sales events, Black Friday and our second birthday offer. We've offered free four-week trials above the line for a limited time only. Ongoing refinements to funnel performance, the enhancing of commenting functionality and expanding our newsletter offerings have helped drive readers to subscribe. With our digital subscription product only being two and a half years old, we're focused to date on converting our most engaged readers. During this phase, we've looked to maintain yield as we grow volume. The small reduction in yield from Q2 2020 corresponds with the launch and subsequent growth in corporate subscriptions that now total 13% of all digital subscribers. We have extended a number of our introductory offers to help create a hundred-day reader habit, improving overall retention rates. Looking now at how we've gone versus international benchmarks, we have 4% of our unique monthly audience now subscribing. Monthly average revenue per user at $14.26 NZD is within the benchmark range, albeit at the lower end once we convert to USD. Paid stop rate, which is the percentage of free audience that hits a paywalled article, is at 8.8%. Our monthly starts per million unique users at 2,502 is strong, reflecting potentially the early product lifecycle phase we're in, converting highly engaged readers and the strong news agenda. Monthly churn is 3.3%. Overall, you'll see we are performing very strongly, but there remains significant opportunity to grow. Focusing in on retention, our churn is largely in line with the market for our month-to-month subscriptions. Annual subscriber retention is strong and represents an opportunity to increase focus on growth. Cancellation reasons mostly centre around value perception issues. Focusing on enhancing this will improve retention, which is another strong opportunity for growth. The New York Times is well known as the gold standard in subscription growth. Last year has seen their digital subscriber revenue overtake their print for the first time. While we are nowhere near that standard yet, the graph on the right shows the New York Times subscription growth by year from pre-digital subscriber days 11 years ago. The yellow line is the percentage of their total subscriber numbers that are digital, from 0 to over 90% in 10 years. We mapped our progress to date in the solid green line, and the dotted green line represents progress out to our 2025 targets. To date and forecast are progressing on a fairly similar path to the New York Times. The table below the graph shows some other market penetration benchmarks versus the number of households, the population and unique audience. It's also worth noting that digital and print subscriber direct contribution per subscriber are very similar. Looking now at the market for paid online use, the proportion that pay for online use at least once a year continues to grow. In most markets, subscribers tend to only have one online use subscription, and the average age is consistently in the 50 to 55 year range. The opportunity for NZME is to take advantage of the growing market size and really establish ourselves as New Zealand's leading paid online use provider. Further, to understand New Zealand's potential market size, a recent INMA study linked the proportion of a country's population that paid for newspapers 20 years ago to the proportion of the population that pays for online use now. New Zealand's newspaper subscribers per capita 20 years ago were very close to the Netherlands and the United States, which have 17% and 21% respectively currently paying for online use. On this basis, the market potential in New Zealand could be 1 million people. And with most people only having one subscription, the opportunity for NZME is to accelerate our digital growth beyond our targets. To achieve this accelerated digital subscriber growth, we've identified three strategies. Enhancing the value proposition to support acquisition and retention. To launch new subscription verticals to expand the market. And to optimise pricing and packaging to maximise long-term value. To enhance the value proposition, we need to improve the end-to-end customer experience. Taking a disciplined approach to focus on all touch points, including onboarding, in-life and exit experiences, focusing on all moments that matter. We also will enhance our self-service capability for our corporate subscribers and also ensuring we have a clear product features and benefits for each read estate. Further to the last point, the diagram above provides an example of the benefits and features that grow at each read estate to support improved engagement, conversion and retention. The Customer Experience Enhancement Programme will further build out these subscriber benefits. The second strategy to accelerate growth is to expand the potential market size beyond those interested in a core new subscription offering. We will introduce new subscription verticals which focus deeply on specialised content and reader segments in business, lifestyle, food and puzzles. Our local experience shows us that consumers value these offerings. To date, not surprisingly, our digital subscribers have come from our traditional print markets in the top of half of the North Island, with corporate digital subscriptions also boosting Wellington and Christchurch penetration. To accelerate growth in our non-print markets, the opportunity is to utilise NZME's platforms to promote brand, content and subscription products. To utilise our local sales teams right around New Zealand and their relationships to sell corporate subscriptions and help set up local database partnerships to accelerate growth. And to utilise personalisation capability to better showcase relevant local content.

on the homepage via newsletters, and as discussed on the prior slide, to introduce verticals to attract new audiences. The third strategy to accelerate growth is to optimize long-term value by implementing a strategic pricing model. It is only two and a half years since we launched Herald Premium. To date, we have been focusing on converting and keeping the highly engaged readers and early adopters. To date, we have one price with a range of intro offers and one subscription product premium. Subscription growth requires us to develop a strategic pricing model and product options to convert the large pool of casual readers. We want to understand the potential opportunity to grow volume faster and then improve yield, to test price in turn, and to make recommendations for product bundles and tiers. We will be enhancing the subscriber value proposition. We will expand the market through new subscription verticals, and we will optimize long-term value through a strategic pricing model. Given this, we will accelerate digital subscription growth towards New Zealand's potential market of one million online paying new subscribers. Thank you. Let me now pass you back to Carolyn. The advertising market in New Zealand continues to evolve. Digital acceleration has continued post-COVID and spend has been shifting to digital. Digital ad revenue has grown to be 55% of the total advertising market, with strong growth of a 10% CAGR, while newspaper ad revenue has declined to 9% of the total advertising market, with a decline of 15% CAGR over the period. Pleasingly, NZME's print and digital revenue share continues to grow. In the print advertising market, NZME has improved its share to 48%. The market continues to be impacted by COVID, particularly in key categories like travel and retail. It is not expected that the market will return to 2019 levels. In the digital advertising market, NZME has grown its share to 25%, and with strong growth of a 10% CAGR, and strong growth in the market this year, it has lifted NZME's digital revenues to a record high in 2021. The key NZME digital products driving the growth are programmatic, up 20%, data-driven audiences, up 60%, native solutions, up 90%, and digital performance marketing, our reseller arrangements with Google and Facebook products, are up 30%. We have three strategic focuses to create a brand safe and scalable destination for advertisers. These are leverage audience insights, best technology and tools, and brand safe monetization. To leverage audience insights, we will continue to build out our customer data to create richer audience insights and sophisticated targeting solutions. We've delivered some significant advancements and delivered some significant initiatives in 2021, which have lifted our data capability. These include contextual targeting, so for example, advertisers could target Kiwi's favorite articles across our site, and sentiment targeting, so for example, advertisers could target only positive stories across our site. We've also integrated some best-in-class partners into our ecosystem. YouTube audience extensions to extend video campaign reach, pinpoint location with Landmark's ID for enhanced geo-targeting, and data connectivity with LiveRamp, so clients can reach their known users and high-value customers across NZME's brands. Our priorities for 2022 and beyond are to deliver geo- and demographic data segmentations, lookalike modeling, intended retargeting, AI-driven creative, and a customer data platform that brings together all of our customer data into one place. NZME is uniquely positioned to work with a wide range of advertisers in the market to deliver effective digital campaigns. We have a huge audience scale across our brand platforms, digitally reaching 50% of Kiwis each month. These are verified and independently measured, and offer advertisers rich brand-safe environments to engage with users. We have market-leading first-party data capability, which is supported by the latest artificial intelligence, machine learning, and natural language programming technologies. We've seen the growth of our authenticated daily users double this year. We collect thousands of user data points, which give us the diversity of data to derive deep audience insights. Together, our scale audiences and first-party data capability enable us to create over 800 customer segments, which advertisers can use to reach prospects at every stage, every age, and every moment. NZME has a broad portfolio of data products, and so we'll be packaging these up to provide a premium alternative to global platforms for all sides of advertisers. For small businesses, we'll offer simple and effective targeted native solutions. For medium-sized businesses, we'll offer custom audience segments to deliver a personalized buying experience, along with dynamic e-commerce product ads to ensure that we get the right product in front of the right user at the right time. For large-sized customers, we'll offer a portfolio of sophisticated targeting products that can be tailored to their unique and specific needs. With the growth in digital adoption and the forecasted growth in SME ad spend, especially with the post-COVID recovery, NZME's new self-service proposition, NZME Ad Hub, will be well-placed to take advantage of these two trends. Our self-service portal offering will offer convenient 24-hour-7 access to NZME's digital products so advertisers can book their ads in a time that is convenient to them. We'll have a best-in-class digital client experience with self-service campaign booking, performance delivery reporting, billing, and rebooking functionality. We'll initially launch in early 2022 with our native performance products and then look to scale the platform to other NZME products in the future. There continues to be strong demand in market for video inventory, with video revenue growing ahead of the digital market at 15% year-on-year. In 2022, we will launch a new video destination on New Zealand Herald, which will make it easy to discover and navigate our new video content proposition, and will incorporate content recommendations and playlist capability. We'll also launch a new optimized mobile app video experience with new rich ad units to enhance the overall user experience. An enhanced snackable video experience will enable NZME to take advantage of the demand for brain-safe video inventory in New Zealand. We will continue to enrich our portfolio of digital advertising products to meet the growing advertiser need for new ways to engage with their target users. We've seen strong results from our New Zealand Herald built recommendation engine, serving native ads based on browsing behavior. It is delivering 1 billion impressions per annum and has doubled our revenues from our previous provider. Our refreshed native placements have improved click-through rates by 18%, and we've just launched new shoppable content and recipe products to drive content through to e-commerce transactions. We will continue to expand our brain-safe ad products so advertisers can reach audiences across all of NZME's platforms. This year, we've added simplification as an underpinning enabler of our growth strategy. With the transition to a digital-centric hybrid model, our business has got more complex, and we'll be simplifying the business so we can continue to adapt to the constant change and evolve our business further in the future. We plan to complete a review of our end-to-end operating model, starting with a refresh of our product vision based on our audiences' and advertisers' needs and what we believe their future needs will be. We'll then explore simplifying and standardizing our products to enable us to streamline our end-to-end processes and automate to drive efficiencies. This will enable us to become more nimble business in the future and free up capacity and resources to enable us to redeploy it to accelerate our growth in key areas. In summary, we have a great opportunity to accelerate publishing's growth with a strategic focus on driving conversion and lifetime value to drive revenue mix. With only 7% of our audience currently sitting in our high-value subscriber segment and a potential addressable market of 1 million subscribers, as you heard from Matt before, we have a big opportunity to accelerate through focused initiatives to convert the engaged segment that makes up 18% of our overall audience to premium subscribers by enhancing our value proposition and customer experience, launching new verticals to broaden the appeal, and optimizing price to drive acquisition. We also have a very large active audience segment that makes up 76% of our audience that we can grow the lifetime value of through digital advertising by increasing their engagement through newsletter signups and logging in to get a more personalized content experience on the New Zealand Herald. A focus on increasing lifetime value of our scale audience will be a key enabler of publishing's growth. We have made strong progress in 2021 against each of our scorecard metrics, and we are on track to achieve our 2023 publishing targets backed by a strong strategy and plan to drive growth in digital subscribers and advertising. Let me now leave you with some further insights into our publishing brands and people. ♪♪♪ ♪♪♪ ♪♪♪ ♪♪♪ ♪♪♪ ♪♪♪ We're sharing with you a significant amount of detail across today's presentations. Remember, get your questions ready and feel free to start putting them in now. I'd now like to introduce you to our Chief of One Roof, Paul Marr. He'll talk to you about our One Roof strategy and our performance to date. Here's some insights from Paul. Hi, I'm Paul Marr. I'm the Chief of One Roof. The thing that excites me about working at One Roof is I work in this amazing industry. There's a combination of the media industry and the real estate business. Real estate is something that New Zealanders are incredibly passionate about and is incredibly dynamic, and media industry is a great way to bring that to life and connect with New Zealanders. Reflecting on the One Roof business, we bring the strength of NZME's assets across the country. We're a really powerful media business, and we use that to really drive incredibly strong audiences for our real estate customers and their vendors. I think the greatest achievement and the thing I'm most proud of about the One Roof business in the last 12 months is the way that we just continue to grow at an exponential rate. Our audiences are just going through the roof. Surprisingly, as we went through the COVID lockdown, our audiences went up when every other real estate business, their audiences stalled or went down. If I think about the way that our listening audiences are growing, they're just growing at an amazing pace right across the country, and that's reflected in the revenue picture that we have. Even with a couple of months where the real estate industry really slowed, we're still going to grow more than 70% year on year. That's an amazing kind of achievement, and the really important thing to us is that's delivering great value to our customers. Thanks, Michael. Let me just remind you of the H1 One Roof scorecard. I think the thing we'd say about the first half is despite really challenging market conditions, we're actually really pleased with where we're sitting. So today what we're going to talk about is going to give you a little bit more depth in terms of the background of the market and our performance, and then we're going to talk about the strategies that we're deploying next year in order to deliver our FY23 goals. Real estate remains NZME's largest revenue vertical, and it remains New Zealanders' favourite investment product, and it's certainly the thing that all New Zealanders talk about at barbecues or around their dinner table. The level of engagement that New Zealanders have with the real estate sector are supported by some of the numbers that you see from the Nielsen report in the slide that you're looking at, some really significant numbers of people who potentially are engaged very strongly in the real estate market. If I look at the FY21,

year. It's been, once again, actually a really challenging year for the real estate industry. After a really strong first quarter, and I think everyone getting excited about what a great year it would be, we started to see clearly some slowing down as we exited that first quarter, and real estate sales, and in fact new listings, have been falling below 2020 and 2019 since May this year. And that's been exacerbated by the extended lockdown, particularly in Auckland in August, September, and October, with residential sales actually down 55% in Auckland in September. And despite those challenges, the market has just been incredibly strong in terms of price and in terms of clearance rates. Prices, for the first time, we reported prices up over the million dollar level across the country. First time we've ever seen anything like that. And in fact, the Australian market, as I understand it, has been lagging behind us in terms of average property price. And clearance, number of days to sell, have continued to decrease. We're currently, through to the end of September, 19% faster in terms of days to sell. And those two things are putting a lot of pressure on total real estate stock in the marketplace. So quite a challenging time for the real estate industry, and of course, for us as a key supplier to agents and vendors. If we then look at the one roof performance, we're really pleased with the trajectory of the platform audience growth that we've seen through this year. And whilst we haven't yet closed the gap on TradeMe, I think when you look at the trajectory of the platform audience, there's some real signs that we're in a good place to close the gap to the number one portal in the marketplace. And I think pleasingly that we've actually cemented our position as the number two portal and actually pulling away from our next nearest competitor. Registered users continue to be exceptionally strong. We're sitting just under actually now the 500,000 mark and expect that to be somewhere around the 550,000 mark as we exit this year. And our downloading of apps, albeit that that has slowed in the middle of the year, is really starting to pick up and we'd expect that to sit somewhere in the 275,000 to 280,000 as we exit the year. Our goal to deliver 100% of listings, I think is in sight. If we take private listings, which we're not currently carrying, we're sitting around about 94% of TradeMe currently, and consistently we sit at 98% of realestate.com. We're clearly very strong in the Auckland market with most months having more listings than both of those competitors. There is opportunity for us to grow listing penetration, particularly in the South Island and some lower North Island markets. And our team have identified where those opportunities lie and we'll be deploying some strategies to deliver those as we move into FY22. As I was talking about kind of the difficult market that we've had in the particularly sort of the first half of the year, what you can see in this chart is we've had some really strong headwinds in the print part of our business. Interestingly, the strength of the Jan to April period and the speed of sale meant that marketers or vendors and agents were not having to run as long a campaign as historically they would have. And what that means is that whilst we weren't losing significant customers, our APU in campaigns actually went down and that created some challenges for us in the first four months of the year. We started to see that recover as we came through May and June, and then unfortunately we've been impacted by COVID, which particularly in the Auckland market has impacted the print business. The chart on the right hand side, however, tells a different story. And that is that our total revenue is now higher than it was for more than five years. I think really pleasingly what we're seeing is some real strength in our digital revenue, which is offsetting those print losses, which I think sets us up for some really strong performance as we move into the next couple of years. And that's in the face of total new listings, which is the mine that you can see on the chart, actually falling over that five year period, although recovering in the latest period. That digital revenue, pleasingly, is driven by some real strength in the growth of our depth or upgrade products. What you can see on this chart is that our depth revenue is making up nearly two thirds of our revenue. Whilst again, you know, the middle of the year slowed quite significantly, we're seeing some real strength as we're exiting this year. And we expect to be 50% up in the Auckland market in residential upgrades in Auckland. And we've doubled our performance in the rest of New Zealand with some real strength in some markets around the country. And whilst that's a lower penetration in the rest of the country, that creates a huge amount of opportunity for us to continue to grow the business and upgrades. Pleasingly, we've also seen a lift in APU in the digital depth products, which is up 13%. So we're seeing both penetration growth and APU growth in this part of the business. So some really good signs. And then if I look at the brand performance, which is incredibly important for our business, as we move forward, we've seen the needle really move on brand very, very strongly through this year. Prompted awareness is up 30%. I think more pleasingly, unprompted awareness and preference are both up really strongly. And then if you look at all of the key driver attributes, your brand attributes, we've seen some incredible growth in has all listings, easiest site to use. And for the first time, OneRoof in our consumer research, we're showing to be number one in terms of the place to get valuations. So, you know, being a still relatively young brand, three and a half years old, we've seen some amazing growth in this part of the business. It has some great signs, I think, in terms of driving more organic traffic, which is really important for us as a platform, up against some pretty stiff competition with TradeMe and realestate.co. So, if I were to summarize the kind of the position that we're in and have kind of been in through the first nine, 10 months of this year, you know, I think we've seen some amazing growth across all of the kind of the parts of our business that you would want to see, which is, you know, audiences, revenue and some real brand strength. And I think we're positioned in a great place to really now start to move forward at speed. So now I'm going to take you through some of the key strategies that we'll deploy as we enter the coming year to deliver the FY23 goals that we showed you at the beginning of this presentation. The pillars of the OneRoof strategy remain the same as last year to strengthen our core residential listings business. This remains our greatest opportunity and a real driver of our profit model to continue to build the value that we provide for agents and their customers, their vendors. And thirdly, to expand the OneRoof brand portfolio, continuing to diversify both revenue and engagement with New Zealand consumers, and importantly, take advantage of opportunities that we see in the marketplace. Let's start with the core residential listings pillar. I'm going to talk to you about about three initiatives that we're continuing and evolving in FY22. They are to increase our brand salience with consumers nationally and regionally, to take advantage of the unique depth that OneRoof has with consumers across the funnel to drive stronger audiences and stronger engagement, and to take some of the learnings that we've had in the second half of the year and accelerate those to grow our listings depth product or upgrade product both in Auckland and across the country. I talked about the importance of brand strength earlier. It's critical to the success of OneRoof business. We've made some fantastic progress during this year in terms of some of the metrics that I showed you earlier in terms of brand awareness, brand preference, and some of the key attributes. We're going to double down on that as we move into FY22 with continued focus on our marketing campaign, particularly up-weighted in the key selling seasons. We have this unique position with the NZME asset pool, depth and breadth of amazing radio stations, great local newspapers, and a powerhouse digital platform. We're working with our local teams to really drive the OneRoof brand at a local level, leveraging talent, leveraging brands, leveraging events, and creating specific campaigns for local markets. The drive that we're putting more capability in terms of talent into the marketing team. Competitively, OneRoof's key point of differentiation is that we engage with consumers right through the real estate funnel. Last year, we talked about that as engaging audiences passively through to active. So when they're not on the market, but just looking at real estate through to when they're deeply in the market. This chart shows the way that we're looking at that funnel, and we'll talk to the opportunities that we see in terms of engaging with consumers across that funnel. The coming year, we're expanding our marketing activities to engage with consumers right through that funnel. We do that in a number of ways. We're going to invest more in driving our organic search and really leverage the power of the brand that we're seeing. We are doubling down on our capability to engage with consumers wherever they sit in the funnel. And what that requires is that for us to leverage the great first party data, we've got the segmentation studies that we've done in market, and make sure that we understand where consumers are in the journey. And with that, serve them the right content, the right listings in order to engage them more deeply on our platform. And that doesn't mean we'll stop working really hard at the bottom end of the funnel, that part of the funnel when consumers are very active in market is critical to us, and critical for us to drive value to our agents and their vendors. And so we're putting more capability in that area and tools and people in terms of customer acquisition and customer conversion. As we continue to grow, we will also increase our levels of depth conversion and revenue per user. We've seen some great strides in that in the last three months. And we're taking some of that learning and applying it much more widely as we move into the FY22 year. We've had success with creating bespoke bundles across different regions and across different customers of our print, digital, and radio assets, and bespoke pricing strategies across those markets. We really lead the market in what we call boost, a leveraging of social media and our first party data to really drive a more targeted listing view. And as we move into FY22, again, we're

that to boost 2.0, we'll provide greater first party data across the NZME business, delivering even more targeted advertising opportunities for customers. And then finally, we see a great opportunity for us to really accelerate across the rest of New Zealand, so across markets outside of Auckland. And so we've been investing in the upper North Island and we're continuing that investment in talent and connections right through the country with new commercial roles to really drive relationships and strengthen the partnerships that we have with our local teams to drive regional conversions. We then look at the second pillar, building our relationship with agents. Clearly the things that I've just been talking about in terms of strengthening our core listings business and our audiences is probably the most critical thing to our agent partners. But we're doing some other things in this area. We're extending our ability to drive the agent's brands by leveraging our data and our content proposition. And we're creating a new data hub to be able to serve and provide local agents with hyper local information that will enable them to serve their vendor in a stronger way. Our agent subscription product was relaunched in the middle of this year with a more compelling product and a much more competitive price point. This has really enabled us to increase agent subscriptions and agent subscription revenue in a significant way where we're up actually two to 300% in this area of the business. That's put us back on track to deliver our subscription goals and of course, recurring revenue with that as we exit FY21. Currently, what we offer is agents the ability to build their brand profile and present their sourced testimonials across the NZME media through a fusion of our first party data and the unique segments that we have across the consumer journeys. We're currently developing the capability to add real time direct consumer feedback to that with a recommendation engine to strengthen both agency appraisal and to improve the one roof yield in this part of the business. We've seen some real growth in this area and we see a big opportunity to deliver a product that is equal to anything in the market in terms of agent rating and appraisal. And in addition to that, we're working to integrate this to our marketing automation platform, which will enable us to capture better data and drive new attribution models to prove the value of this area to our customers' business. As we talked about earlier, our content offer is already a key point of differentiation and has significant demand from agents in terms of leveraging that to drive their business. A quarterly property report, a product that's sponsored by one of our customers, Barfoot Thompson, drives not only our strongest audience engagement, but is also seen on many kitchen tables at open homes as a way of providing really powerful information to vendors and to buyers. The 22 year sees us extending our content proposition, providing more content opportunities across the customer journeys, which creates new opportunities for us to leverage that for agents. And we're really working hard to drive much more relevant content across the regions. We're working on a strategy to deliver that as we speak, but we believe that those two things will deliver a much stronger agent product and create opportunities for much stronger contextual engagement. At the same time, in the same way we're working to provide attribution model in our appraisal products, we're investing in research to demonstrate the value of this part of our business to building agent brands and agency brands. And finally, we're creating a data hub within the OneRoof business to deliver hyperlocal suburb level, in many cases, market data. The differentiator for us in that is, firstly, the depth of data that we actually have and can provide to our agent partners, but also links to our content library and the suburb level content that we've already created, creating some real kind of opportunity to drive a much more powerful engagement for an agent with their vendor. The final strategic pillar is the expansion of the OneRoof product portfolio. In FY22, this includes the extension of listing verticals and the ongoing development of OneRoof as a consumer services provider. And I'll talk more to what that means in a second. Expanding our listing verticals, we see as a significant opportunity, and there are four different verticals that we're putting effort into as we move into FY22. Retirement's the first. We see retirement as a white space opportunity. Currently not served well in the marketplace, but with strong customer competitive forces and growing demand for retirement properties as our population ages. We see an opportunity in this area to create a market, both the listings and content hub solution, which is something that we're currently working already in the market with MetLife Care. Secondly, is accelerating our growth in new homes or new builds. It's a second significant vertical opportunity. We currently participate in this market with both listings and with content. The opportunity here is the customer base is served not only by the OneRoof business, but also we have very strong and deep relations through our direct commercial team. And so we see an opportunity as this market continues to grow to leverage both the listings and the content solutions that we can create across a stronger NZME portfolio sales approach. Thirdly, rural. We launched rural this year very, very successfully. In fact, yesterday we had just over 1,682 listings on our rural site in comparison to TradeMe's 1,024. So we've seen some real take up of our rural listing vertical. And the opportunity that we see in this part of the market is again to leverage the differentiation that we have, and that is through content. And so we're talking to partners about the opportunity to create both our own content and sponsored content as a way to move forward in this business in a similar way to that which we do in the commercial side of the business. And that leads me to the final vertical that, again, we're a real strength in both across our print assets and our digital platform. But the opportunity in the commercial area is to continue to really grow our digital audiences. And to do that, we're investing more in customer acquisition and digital consumer acquisition. And we will drive a much stronger referral product from our key print masters. The biggest of those two opportunities in real terms, we think, are with the retirement vertical and the new business vertical. And that brings me to consumer services. The key here is probably that we're not doing anything particularly different from what we said last year, although we're evaluating new kind of models that we see potential in as we move into the first half of FY22. If I look at the kind of the experience that international portals have shown us, most of the major portals have invested heavily in this side of the business through mortgages, insurance, and in some cases, utility comparison products. So our strategy in this area is to continue to drive short-term revenue through an advertising-based solution, but to evolve that as we move through this year to create new opportunities in potential joint ventures or owned products as we exit this year and move into the next few years. So it's a sort of a watch this space, but we see the opportunity in terms of diversification, particularly in this area of the business. There's an awful lot on, as you can see. You know, we are in a very, very strong position, I think, poised for just an acceleration of growth. With the activities that I've shown you driving back to the three pillars of the strategy that we have deployed last year. The biggest areas of focus for us remain building a brand, really driving a strong acceleration of our listening audiences, and continuing to offer products to agents that drive depth revenue and output. We've made some really positive steps. I think we're well on track. As we exit this year, our performance is really stepping up, and I think we're in a very, very good position to really deliver or over-deliver the FY23 goals. Now, let me leave you with some further insights into the OneRoot business. Thank you. Thanks, Paul, for that great insight. 2021 has been a remarkable year. Despite everything that has gone on, we've remained focused on the 2023 strategic priorities. As you've heard today, we are delivering to the targets that have been set for 2023. Our people remain committed and focused on being the leading integrated media company and on keeping Kiwis in the know. We believe we have a strong investment case, and we are committed to delivering shareholder value. We are a market leader in media and entertainment. We are well advanced in NZME's digital transformation. There are very clear strategic goals with value-adding outcomes. We have an experienced board and executive team who are disciplined in their approach. And as demonstrated by our recent announcement of a proposed capital return, we have strong cash flows and capital management position. We are focused on delivering shareholder value for you. We'll come back for the Q&A straight after this. We got it all. You want it? Got it? We got it all. Oh baby, this is where the action starts. You know it's all or nothing, we're gonna show you what we got. Oh baby, this is where the entertainment starts. You know it's all or nothing, we're gonna show you what we got. We got it all.

We got it all, we got it all, we're standing tall, we got it all We got it all, we got it all, we got it all, we're standing tall, we got it all, we're As you sort of look to 22 and target to 23, are you sort of expecting growth in earnings in 22? What are sort of the swing factors, just sort of interested in the extent to you that you sort of, what you're thinking is on wage inflation and any other inflation pressure in the business? Yeah, hi there Ari and welcome to the call. You're right, we are sort of disappointed that our current guidance doesn't quite see us hitting last year's results. It's something we'll continue to strive for this year. As you will have seen in the presentation, we were going really well and in fact in June of this year, we'd actually achieved advertising revenue growth of last year in the month of June. And it was really just when we came into the lockdowns here in August that we saw really going below the 2019 levels. But we are pleased that we are tracking at or above 2020 levels. So given that, we do actually expect to see advertising revenue growth into next year. And then I think you do point out a couple of the key areas which we'll just have to keep an eye on and that is inflationary pressure. There's certainly demand at the moment for all roles within New Zealand and journalism at the heart of that as well for us. But, you know, fundamentally our focus is on growing the business overall and growing the profitability. So, you know, that's our expectation. David, I'm not sure if there's anything extra you wanted to add to that at all? No, as Michael said, clearly the inflationary pressures exist and that's a common feature across New Zealand at the moment. So we will have to respond to that and ensure that we keep on top of that. And just in terms of, you know, and you referenced in the outlook statement, Google, Facebook, in your budgets for 2022, have you factored in any revenue associated with those discussions? No, we haven't. And so, you know, we fundamentally see those outside of our underlying earnings at this stage. And, you know, fundamentally, as we've started those discussions, as you can imagine, all we're saying is we'd like to just be treated the equivalent of Australia. We've seen what's happened in Australia. And if you were to modify that for audience sizes or population sizes, you know, that comes up with maybe a number. I'm sure, though, those organisations would much rather it be like other jurisdictions in the world, which is significantly less. So we're at early stages and we'll just have to see how those continue to progress. Sure. And then just on capital management, just sort of, which you obviously announced on Tuesday, just keen to sort of understand how you decided, determined to sort of go for the buyback, you know, why you didn't sort of consider a higher payout ratio on free cash flow. And then, you know, just with regards to the return of capital, you know, why you didn't sort of consider a special dividend versus the on-market buyback. Yeah, you've got a few great questions there, Ari. So why don't I bring in David and maybe you can talk through those. Thanks, Ari. And so in terms of, we considered all the various options for returning capital. And as part of that, we looked at the nature of our shareholder base and came to the conclusion that buyback would, across all of that, be the most efficient and effective method. And right throughout any buyback process, the board has to consider that it's in the best interest of the company. And at this point in time, as we look at this and look forward to it, that is the case. So it was determined that was the most efficient method. And then as we look at the dividend policy and our dividend, which we reinstated that dividend process as part of the interim announcement, and we expect to continue with a dividend that would be in line with our policy and wanted to keep that quite separate from the capital return that will be the outcome of the buyback process. Thanks. I did just want to ask a couple of quick questions also just on the business and the presentation of various segments. So just on driven firstly, where, you know, obviously you've done a bunch of work, you're signalling that you're going to do some more in 2022. I mean, is it fair to say that, you know, your focus there is going to sort of need to be in how you sort of address private listings? Is that what's going to be required to, you know, bring the audience levels up, you know, noting that you are on dealers, you are sort of in line with your competitor? Yeah, I think you're spot on there, Ari. So as you note, dealer listings, we're very similar to our main competitor there, TradeMe. We don't really have private listings on the site. And so we don't get the two sided market operating from that perspective. But as you look around the world, you see, you know, there's quite a number of different models being operated at the moment and not capital intensive models, just ways of connecting a consumer to a brand. And so that's why we think there's a real opportunity to maybe do something completely different in New Zealand. But as we've signalled, we're not expecting to spend a significant investment on it because we think across the three platforms and strategic priorities we have, we have real growth opportunities. But at the same time, we want to continue to investigate this in 2022 to see really what the opportunity in the market is. Yeah, and obviously, you've got to spend money wisely. And I guess through, you know, the balance sheet's very strong, but, you know, through the buyback, you're sort of signalling that there's not a compelling enough opportunity at this point to invest money into that vertical. That's right. And I think, as you heard Barbara, who's on the line, say earlier, you know, we're not out to make large scale investment opportunities from an acquisition perspective. You know, we're fundamentally looking, there might be some smaller things we can do, but we fundamentally think we have real growth opportunities across each of our three strategic pillars. Yeah, and then just digital subscriptions. I mean, you've managed to grow those really well while holding yield. Is 2022 going to be too early to sort of look to start some of those initiatives that grow yield as you grow subscribers? Yeah, we're really pleased with the growth and, you know, it's still early days in our cycle. But fundamentally, we think the market is much bigger than what we thought it was when we initially launched digital subscriptions and premium subscriptions, you know, just over two and a half years ago. So we're still fundamentally focused on growing overall volume. But we do think we can get further yield by some of the new verticals. And I know we've still got Matt on the call here with the Q&A. So Matt, there might be something you'd like to share with that specifically. Yeah, thanks, Michael. Opportunity through developing new products, I guess, and new verticals to add extra yield through deeper content and particularly matching those to markets that have a propensity to pay a bit higher yield. But just backing up on what Michael said, initially, you know, we've been focusing on converting our early adopters or, you know, our early adopters into early adopters. Our engaged readers. And so that's how we've managed to maintain yield. But we are also going to take a look at what is the opportunity for the size of the market to take advantage of the potential, you know, potential million to see if there is an opportunity to push harder and grow volume and then drive yield. Thanks, Ari. We'll move ahead and loop back around to you if we have time at the end. We now have a written question from Nigel Jeffries. In publishing, to what degree are the regional publications assisting you to secure a new audience and convert regional audience to paid subscribers? Hi, Nigel, and thanks for joining as well. So the community publications is an area we're putting quite a bit of extra focus on right at the moment. And we're really seeing that really local engagement is paying off for us. But Shane's on the call. So why don't I pass over to you, Shane, to give a little more insight on that. Thanks, Michael. And thanks, everyone, for the opportunity. And great question. The regionals are playing a critical role for us in our digital subscription service. So right now, you know, in terms of newsroom resource, about 40 percent of our journalists are based around the country. And that includes not just our regional print newsrooms, but Wellington and Christchurch as well. And they're contributing around approximately the same percentage of our digital subscription conversions, if you like, through the unique material that they're producing. Interestingly, our regional newsrooms such as Bay of Plenty Times and the Rosarua Daily Post have a much stronger overall number of premium articles in the menu every day. They're right in the heart of that community and producing content that no one else is even there to do. So they do give us great inroads for premium subscriptions and they're a vital component to ensure that that subscription number keeps rising. Thanks, Nigel. We now have a question from Paige Hennessy. Please unmute your mic and go ahead. Obviously, the audio segment focused a fair bit on iHeartRadio and podcasts. I was wondering if you could provide more colour on the growth opportunities there, because obviously it's still quite a small portion of revenue. And also, whether you see it as a future revenue base or if it's more a complementary product to add value as a whole in the audio scheme? Yeah, hiya, Paige. You know, you're right. It's, as you will have seen, about 3.2% of our overall audio revenues to date. Slightly more than that from an audience and engagement perspective. But as you will have seen on those international trends, there really is phenomenal growth happening. And so we're really pleased to be leading it and being the leading podcaster in the country. We've got Jason on the call as well. So Jason, I mean, you might like to talk about some of the great plans you've got. We do see it as incremental revenue. You know, we're not really seeing the money come out of broadcast and into digital. We're actually seeing it as a whole new growth revenue stream, which is something, again, we're excited to be able to tap a completely different digital budget. But a key focus for us and, you know, the people helping us put this production together at the same time are very focused on helping produce great videos and podcasts for our talent and other people. But over to you, Jason. Yeah, thanks, Michael. And Paige, great question. Look, we see podcasting as a critical part of our future in the audio business. As you would have seen in the presentation, ACC, the ACC is a critical part of that. And that is a digital audio brand for us. We've recently appointed Mike Lane, who's led it for a long time. We've recently appointed him to GM of the ACC. And we are going to really strengthen our podcast offering and our digital audio offering with the ACC next year. Also, as you will have seen, Kik, we see the youth audience as a major part of that. And growing that footprint in the digital space is really critical to us. I think, again, the podcast market is very new here in New Zealand. And again, getting our commercial partners on board is taking a bit of time. You will have seen we did do, as we highlighted here with HP this year, we did a great commercial collaboration. And we see there's going to be a lot more possibilities of doing that in the future. Just in follow-up to that, in terms of getting commercial partners on board, it seems like you can do a lot more targeted advertising through there. Is that actually an attractive proposition to them, or is it just the fact that the market's so small you cannot attract them regardless? No, you're exactly right there, Paige. We can actually target, because it's a digital product, so all of us on this call could actually be listening to Mike Hosking live this morning. And though we're all listening on iHeart Radio based on what we know from a demographics perspective or what else you've listened to or done across NZME Assets, we could all be served completely different ads on a live basis. So it really does allow us to give great integration from that perspective. The other thing with iHeart, though, is we can then integrate it across other platforms. And you will have heard both Shane and Jason talk about the integration between nzherald.co.nz and iHeart Radio so that they're both promoting each other. So iHeart Radio sitting and embedded within NZ Herald Stories Online, the actual news that will be produced and given through podcasts. And we're actually really excited by the Kik News brand and the Kik Radio brand that we already have in operation. That's really engaging with quite a younger audience, and that's one that we want to do a lot more work on. Thanks, Paige. Thank you. We now have a written question from David Burrell in regards to podcasting. What is holding back monetization in New Zealand versus the US experience?

and what are you doing to make Entity Me the preferred partner for creators? Hi there, Dave, and welcome. Yeah, you'll see, I think the good news is when we line our podcasts up versus those globally, you can see we have brands from top to bottom that match the best in the world from a podcasting perspective. So that's where we do think we really have an opportunity to leverage all those brands and push them. We are number one, and I know we're most of the top 10 from a podcast perspective. So now it is actually utilizing our assets across the business to actually continue to grow that overall. Again, Jason, would you like to talk at all or more around podcasting, those integrations that you do within the business, and how you see us continuing to grow through those different audiences that maybe we haven't had previously? Totally, Michael, and David, thanks for the question. I think one of the other things is it's quite a bit of an education piece for our commercial partners on how podcasts can be used. For instance, similar to what we were saying to Paige, we can dynamically place ads in all of our back catalog of podcasts as well, which is a critical part for us. So if you want to listen to a piece of content that we created for either Newstalk ZB or ZM or the NZ Herald from a year ago, we can put commercial content in there that is current now. That's going to be a really big focus for us next year. Also, like Michael said, getting new audiences into podcasts because we think that'll be attractive to our commercial partners. Thank you. We have another written question from David Burrell in regards to 2023 targets. How much of the margin growth is expected to come from revenue growth, and how much through efficiency? Hi again, David. Yeah, I think fundamentally, we think we're running a pretty lean operation now. We'll obviously continue to look at how we simplify, and Carolyn talked about that in the publishing business, how we continue to simplify so that we can actually continue to reinvest back into these businesses. But fundamentally, we're on a drive to grow top line, to grow it through our overall digital revenue streams. Barbara's leading a board that is really challenging on that basis. And Barbara, you might like to talk about some of those conversations and some of the skill sets on the board now, but really challenging us to, how do we actually deliver amazing quality that's continuing to grow the overall digital revenues as we transition this business, supported by some of these products that continue to give us product profitability while we grow these new revenue streams? Maybe over to you, Barbara. Thanks, Michael. And thanks everybody for being on the call and for the great presentation from the team. Well done to you all. I think one of the issues we have, or actually one of the benefits we have, is there's a lot we can do. And we really need to stay focused and to challenge the team on those things that are really gonna move the dial. So I think that's a great question. And from my perspective, staying true to our principles, keeping really focused, making sure we're as lean as we can be and have the opportunity to really double down hard on what it is that we know is gonna grow value in the future. So that's certainly the thing we're really focused on as a board. Thank you. We now have a written question from Jason Familton. There has recently been accusations of a captured media by the current government and linkages to subsidies paid to the industry. Could you comment on that? And secondly, are you seeing any impacts on audience engagement from the accusation and or commercial relationships? Hi, Jason. I mean, that's a really interesting question. And as you say, there has been discussions around that. So we've been pretty clear. The government has no input and we feel no pressure from anyone as to what we write from an editorial perspective. Maybe it's a good question for Shane. Shane runs our newsrooms. So Shane, why don't I pass over to you? You can talk a little bit around sort of the support we get and apply for from government. And you actually mentioned some of those in your presentation. But we're certainly not seeing editorial or commercial pressure from any of that. Shane. Thank you, Michael. It is a very relevant question. We are hearing it a lot at the moment through the newsrooms and through the business and not just us. I must say the other media companies are hearing it as well. I can guarantee you it's enshrined in our editorial code of ethics that nobody, least of all the government, would have any sway whatsoever on our editorial coverage. I know that the 300 journalists in the newsroom would probably walk out if that happened to be the case. And that's true of anybody. We operate fearlessly and independently. Otherwise we don't have a business model for our journalism. And so the government has always had, through New Zealand On Air, a funding arm. It's just that right now we are living in a very highly polarized society where the media, in my view, becomes an easy target at times. And so we probably have a better story to tell in terms of just that independence and being on the front foot to explain to our readers and audience that viewpoint. But if you take the Herald as an example, Any Day or Newstalk ZB, you will get a wide variety of views. For instance, this morning we had Mike Hosking alongside Any Day Simon Wilson. You know, two people at opposite ends of the political spectrum, possibly, depending on the topic. And so, and that's really important. We've got dozens and dozens of commentators right across the spectrum. And so wherever the funding comes from, whether it's commercial advertisers, government, the newsroom operates fiercely independently of all of that. Shane shared during the presentation, I think, about the 90% Project and Barbara referred to it as well. And so that's something I'm really proud of this organization where the government wasn't prepared to put a target out there, wasn't prepared to talk about 90% of people being vaccinated. So NZME and our news brands and our entertainment brands took a stand and we said, this is what we think the right thing is for New Zealand. Interesting enough, the government then adopted that at some point later, but also our commercial partners rallied right in behind us and said, we think you're doing the right thing. And they've supported it as well. So something I think, right across the company, we're really proud of being able to deliver on that. Thank you. We now have another question from Ari Decker. Please unmute your mic and go ahead. Oh, thanks, Ed. Just on margins in the business, and I appreciate the publishing obviously dominates in terms of the earnings contribution. Just looking at audio in one roof, probably rightly, a lot of focus on driving audience and revenue, the target margins for those businesses for 23 look, you know, reasonably challenging, you know, potentially against sort of where they sit at the moment, you know, the business is pretty well resourced. You know, are they absolute targets or are you quite happy to miss on the margin targets in those businesses, you know, with a focus on the top line more in that period? No, I think you're spot on. Those absolutely are our targets. And we're very focused on delivering those. And so, you know, coming back to your point, those businesses are very well resourced. And so they're actually very high margin businesses for every incremental dollar that is within them. And so for obviously for radio, for example, it's a high, you know, small variable cost, highly variable profit model audit. And therefore we see high generation of profit and EBITDA flowing through for revenue growth. And so we do continue to expect to see revenue growth in the audio business overall, both in broadcast and in the incremental digital. And then as we've talked about, I think in our half year results, our focus on One Roof this year, and you know, a little into next year is actually investing some of its current contribution back into its growth. And because we are seeing that growth coming through, that gives us the confidence that we will see those margins flow through into 2023. So as we sit here today, they absolutely are targets that we're very focused on delivering. Yeah, so just in follow up to that in audio in particular, what you're sort of saying is, you know, not surprisingly that cost base is pretty fixed, but you're confident, you know, in the return to industry revenue in line with pre-COVID where it was pretty stable. Yes, that's exactly right, Ari. Yep. Okay, great. Thanks. Thanks, Ari. Now I have another written question from David Burrell in regards to digital subscriptions. What have you learned from overseas markets about churn and retention as those markets have opened up and the news cycle has slowed down? Yeah, thanks again, David. And I know we've had a little bit of a discussion in the past around our overall growth and quality from a premium perspective. So, you know, we've been pleased to see even in the first half of this year when there were no elections, there was actually no COVID effectively in New Zealand in the first half of this year, we continued to see really strong subscription growth. You know, we have seen some slight increases over this last quarter because of the big news cycle and what's been happening in New Zealand. But I think fundamentally, it comes back again to what Barbara said and also what Matt said, and it comes back to the quality of the journalism and then the new products that we will continue to have moving forward. So that value proposition will be really, really key to ensure we've got the content that people want across verticals that they want. And we're feeling really confident about that and have great plans on what we'll deliver next year. Thank you. We now have another written question from Nigel Jeffries. When do you expect to establish the next phase of automotive classified strategy? Hiya, Nigel. So again, just going back to maybe one of the answers earlier and that is, you know, our focus right now is really looking at what some of those international models are. And we wanted to be clear though, that we weren't looking to spend a whole lot of money on that while we looked at those verticals and we're really disciplined in our approach. And that's why David was very clear to say, you know, we don't expect to spend significant amounts of money in FY22 in this vertical. We wanna spend the time actually saying what's the right model and what's the actual investments that make sense for our shareholders into the future. So, you know, there may be some spending in the next year and there may be some conclusions in the next year, but we're not expecting that to be significant at this stage. Thank you. We will now take today's final question from David Burrell in regards to overall revenue growth, given the changing mix of revenues, particularly the increasing mix of high growth digital revenue streams on a secular rather than cyclical basis. Do you expect structural growth now, i.e. growing revenue streams outweighing declining revenue streams? Yeah, I think that's absolutely what our focus is. And while we can't guarantee that, you know, based on what's happening around the world at the moment, we do expect to see revenue growth as we go into the next year. And as you look across each of the platforms, in audio, we expect to see growth come through digital and iHeartRadio. In publishing, we're already seeing reader revenue growth through our digital subscriber revenues, offsetting any very small declines that we're seeing in our print subscriber revenues. And we're seeing really strong digital advertising revenue growth. And it's, you know, within a whisker of actually offsetting print advertising, and that gap closes every single day. And then fundamentally, you will have seen in the OneRoof business, you know, Paul Ma was able to share that the digital revenue growth that we've seen in OneRoof has actually taken us back to beating what the revenues were in 2017, which were obviously substantially print back then. And so our objective is to continue to maintain print revenues while overall growing those digital revenues. So you add all those together, and I think that shows a great transformation in revenues to a digital media business, while it's still supported by some fundamentally strong base products that we think will be around for a very long time. So that gives us growth into the future. So thank you everyone for joining us today. We really appreciate you taking the time to sit with us and understand our business more. There's obviously quite a bit of information in the pack we've shared. And so, you know, David and I and any of the team would be delighted to get back together and share more with you. The video will be uploaded by the end of the today, and you'll be able to share that with others. Thanks again. Thanks for your support. Have a great day.