Third Quarter 2021(opens in new window)

Third Quarter 2021 Investor Presentation

November 4, 2021 NASDAQ: IHRT

Safe Harbor Statement

Forward Looking Language

Certain statements in this presentation constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of iHeartMedia, Inc. and its subsidiaries (the "Company"), to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases "guidance," "believe," "expect," "anticipate," "estimates," "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances, such as statements about the anticipated impact of the COVID-19 pandemic on our business, financial position and results of operations, expectations regarding economic recovery and the recovery of advertising revenue, financial performance of our new segments, our expected costs, savings and timing of our modernization initiatives and other capital and operating expense reduction initiatives, our future performance relative to other companies in our industry, our business plans, strategies and initiatives, our expectations about certain markets and our anticipated financial performance and liquidity, are forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other important factors, some of which are beyond our control and are difficult to predict. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this presentation include, but are not limited to: weak or uncertain global economic conditions; the impact of the COVID-19 pandemic; increased competition; dependence upon the performance of on-air talent, program hosts and management; fluctuations in operating costs; technological changes and innovations; shifts in population and other demographics; impact of our substantial indebtedness; impact of acquisitions, dispositions and other strategic transactions; legislative or regulatory requirements; impact of legislation, ongoing litigation, or royalty audits on music licensing and royalties; regulations and concerns regarding privacy and data protection; risk associated with our emergence from the Chapter 11 Cases; risks related to our Class A common stock; and regulations impacting our business and the ownership of our securities. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this presentation may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this presentation. Additional risks that could cause future results to differ from those expressed by any forward-looking statement are described in the Company's reports filed with the U.S. Securities and Exchange Commission, including in the section entitled "Item 1A. Risk Factors" of iHeartMedia, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as otherwise stated in this presentation, the Company does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Non-GAAP Financial Measures

This presentation includes information that does not conform to U.S. generally accepted accounting principles (GAAP), such as (i) Adjusted EBITDA and Adjusted EBITDA margin, (ii) Free cash flow, (iii) Free cash flow including net proceeds from real estate sales, and (iv) revenue excluding the effects of political revenue. Since these non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. This data should be read in conjunction with previously published company reports on Forms 10-K,10-Q and 8-K. These reports are available on the Investor Relations page of www.iheartmedia.com. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included at the end of this presentation.

This presentation should be read in conjunction with the Q3 2021 earnings release of iHeartMedia, Inc. and Form 10-Q filing of iHeartMedia, Inc. available at www.iheartmedia.com

Numbers may not sum due to rounding. In this presentation, Adjusted EBITDA is defined as consolidated Operating income adjusted to exclude restructuring expenses included within Direct operating expenses and Selling, General and Administrative expense, ("SG&A") and share-based compensation expenses included within SG&A expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization; Impairment charges; and Other operating income (expense), net. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues. Free cash flow from (used for) continuing operations is defined as Cash provided by (used for) operating activities from continuing operations less capital expenditures, which is disclosed as Purchases of property, plant and equipment by continuing operations in the Company's Consolidated Statements of Cash Flows. Free Cash Flow including net proceeds from real estate sales is Free cash flow further adjusted to include net proceeds from real estate sales. See reconciliations in the Appendix.

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Executive Summary

• Q3 2021 Consolidated Results
• • Q3 Revenue of $928 million up 25% YoY; exceeding prior guidance of up approximately 20%
  • • Excluding the impact of Political, Q3 revenue was up 31% YoY
    • Q3 2021 down 2% vs. Q3 2019 -- continuing sequential quarterly improvement vs. 2019
  • Consolidated Adjusted EBITDA of $230 million vs. $162 million in Q3 2020
  • Consolidated Adjusted EBITDA margin of 25%, up 340 bps from 21% in Q2 2021 and up 300 bps from 22% in Q3 2020
• Q3 2021 Digital Audio Group Maintains Strong Growth and Profit Trajectory
• • Digital Audio Group Revenue up 77% YoY
  • • Podcast Revenue up 184% YoY and Digital Revenue excluding Podcast up 51% YoY
  • Segment Adjusted EBITDA of $67 million increased 91% YoY; up from $54 million in Q2 2021
  • Digital Audio Group Adjusted EBITDA margin of 33%, up 520 bps from 27% in Q2 2021 and up 230 bps from 30% in Q3 2020
• Q3 2021 Multiplatform Group Momentum Accelerates
• • Multiplatform Group Revenue was up 19% YoY
  • • Excluding the impact of Political, Q3 revenue was up 22% YoY
    • Q3 2021 down 17% vs Q3 2019 -- continuing sequential quarterly improvement vs. 2019
  • Segment Adjusted EBITDA of $208 million; up from $139 million in Q3 2020, and up sequentially from $181 million in Q2 2021
  • Multiplatform Group Adjusted EBITDA margin of 32%, up 170 bps from 30% in Q2 2021 and up 660 bps from 25% in Q3 2020
• Free Cash Flow Generation and Proactive Capital Structure Improvements
• • Generated Cash Flows from operating activities of $96 million
  • Free Cash Flow of $45 million; including $9 million of proceeds from real estate sales, Free Cash Flow including net proceeds from real estate sales was $54 million
  • • Capital Expenditures of $50 million vs. $32 million in Q2 2021, driven primarily by accelerated real estate consolidation
  • Cash balance and total available liquidity1 of $369 million and $791 million, respectively, as of September 30, 2021
  • Capital Structure: Term Loan reduced by $250 million, Loan Terms improved (July); $60 million Preferred repurchased (October)
• Entered Multi-Year Strategic Partnership Agreed with DraftKings
• iHeart continues position as Number One in podcast listening with 282 Million Global Monthly Downloads and Streams and 30 Million U.S. Unique Monthly Listeners2; iHeartRadio app continues as Number One digital radio platform3
• Updated Guidance
• • Despite comparison to strong political quarter and recovering ad market in Q4 2020, Q4 consolidated revenue expected to be up approximately 10% YoY; Excluding the impact of Political, Q4 revenue is expected to increase by approximately 22% YoY4
  • October consolidated revenue approximately flat YoY; Excluding the impact of Political, October revenue increased approximately 22% YoY4
  • We reaffirm that we expect to return to 2019 Adjusted EBITDA levels by the end of 2021

1. Total available liquidity defined as cash and cash equivalents plus available borrowings under our ABL Facility. We use total available liquidity to evaluate our capacity to access cash to

• meet obligations and fund operations.
• 1. Source: Podtrac Monthly Ranker, September 2021
  2. Source: Triton Streaming Ranker
  3. Included in October 2020 revenue was approximately $66 million of political revenue; Included in Q4 2020 revenue is approximately $96M of political revenue

Segment Reporting: 2021 Q3 Results

				Revenue					Adjusted EBITDA					Margin %
$US Dollars in millions		Three Months Ended September 30, 2021			Three Months Ended September 30, 2021
		2021		2020	% Chg			2021		2020	% Chg		Q3 2021	Q3 2020	Q2 2021	Q1 2021
Multiplatform Group	$	659.0	$	555.1	18.7 %	$	208.4	$	139.0	50.0 %	31.6	%	25.0	%	29.9	%	21.0	%
Digital Audio Group		205.8		116.2	77.1 %			67.1		35.2	90.9 %	32.6	%	30.3	%	27.4	%	25.4	%
Audio & Media Services Group		66.1		75.0	(11.9)%			22.4		28.8	(22.1)%	33.9	%	38.4	%	33.5	%	27.8	%
Corporate and Other Items								(67.8)	(40.8)	NM
Eliminations		(2.8)		(1.9)	NM			-		-	NM
Consolidated	$	928.1	$	744.4	24.7 %		$	230.2	$	162.1	42.0 %		24.8 %	21.8 %	21.4 %	14.5 %
Memo: Podcast	$	64.2	$	22.6	183.7 %
Memo: Digital ex. Podcast	$	141.6	$	93.6	51.3 %

• Figures may not foot due to rounding.

iHeart

Has the Only

Total Audio Media Ecosystem

CONTENT	DISTRIBUTION	TECHNOLOGY
	Broadcast & Digital	Hosting/Infrastructure, Data,
		Monetization, and Measurement

Radio Stations & Station Websites	Events (Local & National)

Networks

Email Newsletters and iHeart Websites

Personalities

860+ O&O Broadcast Stations

ENRIQUE SANTOS

BREAKFAST CLUB

RYAN SEACREST

DELILAH

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