Seven West Media : Presentation of Interim Results to Analysts

1HFY19 RESULTS

Presentation on 19 February 2019. Results for the half year ended

29 December 2018.

DISCLAIMER | BASIS OF PREPARATION OF SLIDES

Disclaimer. Basis of Preparation of Slides

Data included in this presentation is prepared for the management of Seven West Media Limited and its associated entities (together, 'SWM'). This data is included for information purposes only and has not been audited or reviewed or subject to the same level of review by SWM as the statutory accounts and so is merely provided for indicative purposes. SWM and its employees do not warrant the accuracy or reliability of this data and disclaim any liability flowing from the use of this data by any party.

SWM does not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation.

All forward-looking statements in this document reflect the current expectations concerning future results and events. Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, materials and equipment) that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.

Unless otherwise indicated, all references to estimates, targets and forecasts and derivations of the same in this document are references to estimates, targets and forecasts by SWM. Estimates, targets and forecasts are based on views held only at the date of this document, and actual events and results may be materially different from them. SWM does not undertake to revise this document to reflect any future events or circumstances.

Amounts, totals and change percentages calculated on whole numbers and not the rounded amounts presented. The information contained in these pages may not necessarily be in statutory format.

Presentation on 19 February 2019 Results for the half year ended 29 December 2018

Agenda

•  Group Performance

•  Financials

•  Business Units

•  Outlook

•  Q&A

GROUP PERFORMANCE | 1HFY19 PERFORMANCE

1HFY19 Performance

•  #1 network, main channel and multi channel in 2018 - #1 network for all key demos - 3% pts increase in 1H ratings

•  #1 metro revenue share of 39.2% in CY18; 38.4% in 1H FY19, up 2% pts YoY

•  7plus secured #1 2Q OzTAM VPM share

  •  Raised FY19 group cost out target from $10-20m to $30-40m

  •  1H group costs flat, including impact of the cricket, with savings skewed to 2H

  •  WAN organisational restructure accelerated under new leadership

  FINANCIAL PERFORMANCE

•  Softer 2Q metro TV ad market but strong share growth

•  Underlying EBIT of $147m, down 4% excl. FY18's 53rd week

•  Underlying net profit after tax of $91.8m

•  Group net debt reduced below $590m, down $121m YoY

  •  BVOD revenue market grew 43% YoY to $61m in 1H FY19

  •  Studios revenue grew 20% YoY in 1H

  •  Early stage investment portfolio grew 10% YoY

•  Refinanced debt through 2021/2022, no change in covenants and beneficial price outcome

•  Dividend remains temporarily suspended

Presentation on 19 February 2019 Results for the half year ended 29 December 2018

GROUP PERFORMANCE | BROADCAST RATINGS

Strategy Broadcast ratings

2018 RATINGS DOMINANCE PROVIDES 2H REVENUE OPPORTUNITY

COMMERCIAL BROADCAST RATINGS SHARE (Excl. Commonwealth Games)
		xcl. Commonwealth Games)

44.7%

45.0%

35.0%

25.0%

15.0%

2H FY17/18

JanuaryFebruaryMarchApril

prior year

MayJuneJuly

NineNine prior year

August

Ten

Source: OzTAM (Metro) January 2017 to December 2018 (Total People, 06:00-24:00); Data: consolidated 7; Excludes Commonwealth Games: 4-15 April 2018

1H FY18/19

SeptemberOctober

Ten prior year

19.8%

NovemberDecember

Presentation on 19 February 2019 Results for the half year ended 29 December 2018