{Maubnru . I . SUMMARY INFORMATION This presentation contains summary information about Fairfax Media Limited and its activities current as at 19 February 2016. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with Fairfax Media Limited other periodic and continuous disclosure announcements which are available at www.fairfaxmedia.com.au. NOT FINANCIAL PRODUCT ADVICE This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Fairfax Media Limited securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Statements made in this presentation are made as at the date of the presentation unless otherwise stated. PAST PERFORMANCE Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. FUTURE PERFORMANCE This presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “predict”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may vary materially for many projections because events and actual circumstances frequently do not occur as forecast and these differences can be material. This presentation contains such statements that are subject to risk factors associated with the industries in which Fairfax Media Limited operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are based. Fairfax Media Limited assumes no obligation to update or revise such information to reflect any change in expectations or assumptions. The inclusion of forward-looking statements in this presentation should not be regarded as a representation, warranty of guarantee with respect to its accuracy or the accuracy of the underlying assumptions or that Fairfax Media Limited will achieve, or is likely to achieve, any particular results. 2 2016 HALF-YEAR RESULTS OVERVIEW & CEO COMMENTARY Greg Hywood CURRENT TRADING ENVIRONMENT & OUTLOOK Greg Hywood GROUP FINANCIALS David Housego Q&A Greg Hywood & David Housego APPENDICES 1. 2. 3. 4. Group Trading Performance FY16 H1 Group Trading Performance FY15 H1 Printing Operations Corporate 5. Non-Controlling Interest 6. Significant Items 3 2016 HALF-YEAR RESULTS 7. Group Digital Revenue 8. Metropolitan Media Digital Revenue Profile 9. Fairfax Audiences (1) 10. Fairfax Audiences (2) 11. Fairfax Audiences (3) OVERVIEW 8 CEO COMMENTARY GREG HYWOO D, CEO Trading Performance excluding significant items Operations Closed / Disposals Trading Performance for continuing businesses FY16 H1 27 December 2015 Total revenue Expenses Operating EBITDA EBIT Net profit/(loss) attributable to members of the Company Earnings per share 5 2016 HALF-YEAR RESULTS $m 958.1 (799.7) 161.1 126.4 79.8 3.4 $m - Trading Performance for continuing businesses FY15 H1 Change $m 958.1 (799.7) 161.1 126.4 $m 932.3 (775.1) 157.9 124.4 % 2.8% (3.2%) 2.0% 1.6% 79.8 3.4 81.6 3.5 (2.2%) (2.0%) • Group revenue for continuing operations increased 2.8% to $958.1m. • Group expenses for continuing operations increased 3.2% to $799.7m. • Underlying EBITDA of $161.1m increased by 1% and increased by 2% for continuing business. • Underlying EBIT of $126.4m increased 0.5% and 1.6% for continuing business. • Operations Closed and Disposals in FY15 H1 were the Chullora and Tullamarine printing sites and 96FM. • Net profit for continuing businesses of $79.8m, down 2.2%. • Interim dividend of 2¢ per share (50% franked). DOMAIN GROUP LIFE MEDIA & EVENTS DIGITAL VENTURES Real estate media and services Lifestyle media assets and events Portfolio of digitallyfocused assets 7.4M 5.2M 3.8M Australians across print, web, mobile/tablet Australians across print, web, mobile/tablet Australians across print, web, mobile/tablet AUSTRALIAN METRO MEDIA Leading metropolitan newspapers and digital media AUSTRALIAN COMMUNITY MEDIA NEW ZEALAND MEDIA MACQUARIE MEDIA LIMITED Leading rural and regional newspapers and digital media Leading NZ newspapers and digital media Leading national news, talk, sport and music radio network 2.2M 3.9M 2.7M 2.3M Allure Media business Australians across print, web, mobile/tablet New Zealanders across print, web, mobile/tablet Australian listeners ETWO FAIRFAX MEDIA L: f, RTIAKII nix-Domain Ell Shiny 13mins ?nal) 11M AUSTRALIANS $34 2 SM EVENT PARTICIPANTS IN FORMATION News, Busmess. Spoct. I :festyte, Content Marketing MARKETPLACES Propetty. Cars. Jobs, Dating and Transactions Quality Content thababysiuu - Premium Product; adzuna Data 8 In?lghta 0'19} - 3M NEW ZEALANDERS 6 2 3M AUSTRALIANS ENTERTAINMENT Running, SWImmIng. Food. Wine. Lifestyle. SVOD, Music, Radio STAN SUBSCRIBERS Note: $1 .9bn is FY15 annualised revenue. ltl. Meier weathenone? mm A Revenue EBITDA FY16 H1 FY15 H1 % FY16 H1 FY15 H1 % A$m A$m change A$m A$m change Australian Metro Media 458.0 417.5 9.7% 97.2 84.7 14.7% Australian Community Media* 257.1 282.6 (9.0%) 45.2 56.6 (20.1%) New Zealand Media* 166.0 179.5 (7.6%) 27.6 31.3 (11.7%) 69.0 53.7 28.5% 12.0 8.8 35.9% 4.9% Radio Corporate and Other 8.1 10.0 (19.7%) (20.9) (22.0) Total 958.1 943.3 1.6% 161.1 159.4 1.1% New Zealand Media* $NZD 182.4 197.0 (7.4%) 30.3 34.4 (11.9%) • Reported group EBITDA increase of 1.1%, an increase of 2.0% on a continuing business basis. • Reported group revenue increase of 1.6%, an increase of 2.8% on a continuing business basis: – Metropolitan Media revenues up 9.7%. • Domain digital revenue up 36.9%; Domain.com.au revenue up 38.2%. – Australian Community Media revenues down 9.0% (11.2% excluding external print revenue). – New Zealand ($NZ) revenues down 7.4%. – Radio revenues up 28.5% (FY15 H1 includes FRN only, including six months of 96FM). Note: * Australian Community Media and New Zealand Media – Revenue includes external printing revenue (only included in the segment slide). 8 2016 HALF-YEAR RESULTS GROW TRANSFORM INVEST • Build and invest in • Continue the • Develop new growth Domain Group • Grow verticals and leverage areas where we have competitive strengths and skills, e.g. Life Media & Events • Realise full potential of restructured Radio business 9 2016 HALF-YEAR RESULTS transformation of the publishing business on the print to digital journey • Reshape the publishing model • Continue to deliver efficiencies • Maintain cost discipline verticals (e.g. Stan) • Pursue strategic opportunities • Leverage balance sheet strength DOMAIN GROUP • 98% digital EBITDA growth (underlying +45%) • 99% increase in average monthly visits • 88% national listings penetration • Acquisition of strategic stake in Homepass LIFE MEDIA & EVENTS • 16% revenue growth • Drive.com.au JV with 112 Pty Ltd • Acquisition of Openair Cinemas • Investment in and development of fitness membership business Bodypass MACQUARIE MEDIA • Radio business realised cost efficiencies and implementing revenue synergies GROUP DIGITAL REVENUE • 20% growth AUSTRALIAN METRO MEDIA • 14% growth in digital subscription revenue • 4% publishing cost improvement in H1 • $61m cash from sale of Chullora & Tullamarine print sites AUSTRALIAN COMMUNITY MEDIA • 9% cost improvement in H1 • $60m annualised cost reduction on track for FY16 delivery • Well progressed with digital-first publishing roll-out • 25% strategic stake in local social network Nabo NEW ZEALAND MEDIA • 43% digital revenue growth • 7% cost improvement in H1 • 5% growth in Stuff.co.nz audience STAN • Multi-year exclusive SHOWTIME deal • 700,000+ households • Approaching 400,000 active subscribers DIGITAL PUBLISHING (DIGITAL VENTURES) • Around 50% revenue growth • Weatherzone 45% B2C revenue growth • Allure Media launched new sites • HuffPost Australia launch in August 2015 CAPITAL MANAGEMENT • $6.2m net cash balance sheet position at December 2015 • Completed on-market buy-back of 5% of FXJ issued capital for $111.8m during calendar 2015 SEGMENT RESULTS GREG HYWOO D, CEO 13 2016 HALF-YEAR RESULTS ALWAYS @Media • Advertising revenue increased following acquisition of MMP and strong growth in Domain and Digital Ventures, somewhat offset by weak print advertising. FY16 H1 A$m FY15 H1 A$m % change Advertising 287.3 248.6 15.6% • Growth in digital subscriptions of 14.3% largely offset modest declines in print circulation. Circulation 113.8 115.2 (1.3%) 6.1% • Increased costs reflect the consolidation of MMP costs and the ongoing operational investment in Domain, somewhat offset by publishing costs down 4%. Associate profit (loss) Other Total Revenue Costs Note: 1. Printing contribution nets off in costs. 14 2016 HALF-YEAR RESULTS 53.7 417.5 0.4 2.9 9.7% (87.7%) (361.2) (335.7) (7.6%) EBITDA 97.2 84.7 14.7% EBIT 79.4 61.6 21.2% 20.3% EBITDA Margin A 56.9 458.0 FY15 H1 $0.6m moved from Other Revenue to Advertising Revenue. A 156.3 141.9 131.0 FY16 H1 106.7 95.8 30.5 18.0 Print Advertising Digital Advertising FY15 H1 99.5 Print Circ / Subs 27.8 26.4 25.9 15.8 Digital Circ / Subs Events and Other Non Digital Revenue Other Digital Revenue • Metro Print advertising revenue increased 10.1% reflecting acquisition of MMP, while Metro Digital advertising increased 22.8%. • Digital Subscription revenue increased by 14.3% with around 162,000 paid digital subscribers across the SMH and The Age (as at 12 February 2016). • Events / Other Non Digital Revenue includes growth in new events and the acquisition of Open Air Cinemas. 15 2016 HALF-YEAR RESULTS • 37% digital revenue growth. • Domain.com.au revenue growth of 38%. Depth revenue growth of 57% (75:25 depth/subscriber revenue split for FY16 H1). • Continued investment in sales, product development and marketing. Excluding one-off costs in the prior period, underlying digital costs increased 30%. • Digital EBITDA growth of 98% reflected strong revenue growth and investment in acquisitions; 45% growth excluding one-off costs in the prior period. • Underlying print revenue decline of 5%. Notes: * Domain results are reported as part of the Metropolitan Media segment. 16 2016 HALF-YEAR RESULTS FY16 H1 A$m FY15 H1 A$m Costs 54.8 99.1 153.9 (88.2) 22.1 72.4 94.5 3.1 (59.9) 147.5% 36.9% 62.8% (100.0%) (47.4%) EBITDA EBITDA - Print EBITDA - Digital Margin - Print Margin - Digital 65.7 15.4 50.3 28.1% 50.8% 37.8 12.4 25.4 55.9% 35.1% 73.8% 24.3% 97.9% Advertising - Print Advertising - Digital Total Revenue Associate profit (loss) % change Total Listings (k) 500 • 14% increase in Domain agent subscribers to 11,000. 450 • 6% increase in online listings to 364,000. 400 12% 20% 350 – National online listings penetration at 88%, up from 80% in December 2014. • Close to full listings market penetration in all key metro markets. 300 Domain Listings Gap to full market penetration Note: ACT refers to Allhomes listings. Source: Domain, Allhomes, APM PriceFinder. 17 2016 HALF-YEAR RESULTS Total Online Listings Dec-15 Nov-15 Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 Feb-15 Jan-15 Dec-14 250 • Main listing gaps remain in regional Queensland and regional Victoria. Average Daily Unique Browsers (k)¹ +96% in Dec 2015 700 600 • FY16 H1 saw step change in Domain’s audience position with average daily UBs on main site and mobile site doubling from just 1 under 300,000 in FY15 H1 to around 600,000. • Highest average daily UBs on record in November 2015 at 665,000, up 124% on prior year. 500 400 • Domain is providing large, national audience reach, with exclusive 2 audiences and growth in new digital channels. In November 2015 : 300 200 − Domain reached 5.2 million people across its digital platforms and print publications. 100 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 0 − Domain had an unique digital audience of 3.3 million people, of whom 1.1 million did not visit our main competitor’s site. • Domain has the highest number of followers on social media and 3 highest engagement on Facebook of any property site in Australia. Notes: 1. Average Daily Unique Browsers for main site and mobile site for Domain (excludes apps). Source: Nielsen Online Market Intelligence (Home & Fashion Suite). 2. Source: emmaTM conducted by Ipsos MediaCT, people aged 14+ for the 12 months ending November 2015, Nielsen Online Ratings November 2015, people 14+ only. Includes allhomes.com.au. 3. Source: 466,000 followers across Facebook, Instagram, Twitter, Pinterest, LinkedIn, YouTube and Google+, as of 18 February 2016. Facebook engagement is Likes, Comments and Shares in the week to 17 February 2016 (source: Facebook Insights). 18 2016 HALF-YEAR RESULTS • Domain continues to have the highest consumer ratings for a property app in Australia.¹ Mobile App Downloads (m) +36% • Investment in Homepass will provide the next evolution of Domain’s consumer apps, with integration into agent CRM systems. • Rebuild of Domain’s iPad application. • Launch of new mobile site for Allhomes, plus updated main site and mobile app. • Full launch of Domain HomePriceGuide. More than 2 million people have used HomePriceGuide, helping them make more informed decisions about property. • Integration of Google Now cards with suggested properties on Android. 3.2 31-Dec-14 3.8 30-Jun-15 4.4 31-Dec-15 • Mobile app downloads increased 36% to 4.4 million at 31 December.² • Additional 1.2 million app downloads during 2015. Notes: 1. Based on consumer ratings in the App Store and Google Play for All Versions of property apps with more than 1,000 consumer reviews, as of 17 February 2016. 2. Mobile app downloads for Domain and Allhomes combined. Source: Appfigures. 19 2016 HALF-YEAR RESULTS Average Monthly Visits by Platform (m)1 • Domain Group delivered an average of 39.2m visits each month in FY16 H1, up 99% on prior year. This represents significant engagement from a high-quality audience for our agent and media clients. +99% 45 39.2 40 • Renewed growth in main site visits due to deeper integration with Fairfax digital mastheads (listings and content distribution). 35 30 26.3 25 20 15 Mobile Sites & Apps: +149% 19.7 • Year-on-year growth in visits accelerated during FY16 H1. 10.6 • In December 20152: 10 5 • Strong growth in mobile visits, up 149%, primarily driven by greater volume of app users. 9.1 12.9 – 78% of visits were to property listings; – visits to property listings were up 157% on prior year. 0 FY15 H1 Main Sites: +42% FY16 H1 Notes: 1. Average monthly visits for domain.com.au, allhomes.com.au and commercialrealestate.com.au combined. Full six months of dat a included for Allhomes in FY15 H1 and FY16 H1 to provide likefor-like comparison. Data for Main Sites from Nielsen Online Market Intelligence Home & Fashion Suite (including international traffic to sites). Mobile Sites and Apps visits combined. Mobile Sites data from Nielsen Online Market Intelligence Home & Fashion Suite (including international traffic to sites). Mobile Apps dat a from Google Analytics (including international traffic to apps). FY15 H1 has been re-stated for Nielsen and Google Analytics changes. 2. Visits to Domain main site, mobile site and mobile app combined. Source: Google Analytics. 20 2016 HALF-YEAR RESULTS Total visits (millions) 1 70 • In January 2015 Domain delivered 18.1 million visits across main site, mobile site and mobile apps – a gap of 63% to its main competitor. 60.7 60 50 34% 49.0 63% 39.9 40 Domain 30 20 realestate.com.au 18.1 10 • In November 2015 Domain delivered 39.9 million visits, almost halving the gap to its main competitor to 34%. • Domain’s rapid increase in visits has been driven by growth in mobile app downloads and usage, an improved mobile site and deeper integration with the Fairfax digital mastheads. 0 January 2015 November 2015 Note: 1. Total monthly visits to main site, mobile site and mobile apps for domain.com.au and realestate.com.au. Source: Domain visits from Nielsen Online Market Intelligence (Home & Fashion Suite) for main site and mobile site, and Google Analytics for mobile apps. Realestate.com.au visits from REA National Fast Fact Sheets for January 2015 and November 2015. 21 2016 HALF-YEAR RESULTS • Digital Ventures continues to execute its strategy of value creation through investment in digital opportunities and managing our portfolio of digitally-focused assets. – Focus on building scale and value in current assets. FY16 H1 FY15 H1 % A$m A$m change Advertising 8.7 6.2 39.8% Other 8.6 7.9 8.2% 17.3 14.2 22.1% 0.3 (0.2) 246.8% • Allure Media delivered strong revenue growth. Launched new sites including Clique titles: Who What Wear, Byrdie and MyDomaine. Total Revenue (13.1) (11.5) (14.4%) • Weatherzone B2C revenue grew 45% with growth in advertising revenue particularly from the app. EBITDA 4.5 2.5 79.5% EBIT 4.1 2.2 84.1% Associate profit (loss) Costs • In Associate profits, RSVP/Oasis Active has seen an improvement in EBITDA through new subscription products and cost synergies. EBITDA Margin A Note: * The Digital Ventures businesses are reported as part of the Metropolitan Media segment. 22 2016 HALF-YEAR RESULTS 25.9% 17.6% FY15 H1 $0.6m moved from Other Revenue to Advertising Revenue. A • Advertising revenue down 12.1% impacted by decline in supermarket-related print retail advertising, partially offset by an increase in print real estate. • Circulation revenues declined reflecting lower retail volumes. • Cost improvement of 8.7% with the benefit of the Transformation project. • Transformation program on track to achieve annualised cost reduction target of $60m by end of FY16. Advertising Circulation Other Total Revenue Associate profit (loss) Costs EBITDA EBIT EBITDA Margin Note: Printing contribution nets off in costs. 23 2016 HALF-YEAR RESULTS FY16 H1 FY15 H1 % A$m 172.1 46.0 9.7 227.8 1.1 (183.6) 45.2 36.7 A$m 195.9 49.9 10.7 256.5 1.3 (201.2) 56.6 44.6 change (12.1%) (7.8%) (9.8%) (11.2%) (16.4%) 8.7% (20.1%) (17.6%) 19.9% 22.1% • In $AU, revenue is down 7.6% and EBITDA is down 11.7% from FY15 H1. • Digital revenue growth of 43% driven largely from mobile and native advertising. • Advertising revenue impacted by weak market conditions in New Zealand. Supermarket, retail and employment advertising declines offset by strong performance in real estate and health. • Circulation revenue declined 3.3% with stable subscription revenue offset by continued pressure on retail sales. • Strong cost management in publishing whilst investing in the digital business. Note: Printing contribution nets off in costs. 24 2016 HALF-YEAR RESULTS FY16 H1 FY15 H1 % NZ$m NZ$m change Advertising 119.8 131.9 (9.2%) Circulation 55.6 57.5 (3.3%) 6.2 6.7 (8.2%) 181.5 196.1 Other Total Revenue Associate Profits (Loss) Costs (0.6) (0.3) (7.4%) (140.3%) (150.6) (161.5) 6.7% EBITDA 30.3 34.4 (11.9%) EBIT 23.7 28.4 (16.5%) 16.7% 17.5% EBITDA Margin Brand Google MSN/Outlook/Bing/Skype* Facebook Microsoft YouTube Stuff.co.nz TradeMe Nzherald.co.nz New Zealand Government Yahoo! Unique Audience (‘000) January 2016 January 2015 2,888 2,442 2,396 1,866 1,814 1,768 1,680 1,500 1,475 1,181 2,876 2,298 1,643 1,581 1,690 1,855 1,225 1,477 1,462 Source: Nielsen Online Ratings monthly unique audience. Note: * There was a trend break in December 2015 when MSN/Outlook/Bing also grouped Skype, therefore no meaningful change can be provided. 25 2016 HALF-YEAR RESULTS % Change 0.4% nm 4.3% 13.6% 14.7% 4.6% -9.4% 22.4% -0.1% -19.2% • Fairfax Radio Network merged with Macquarie Radio Network on 31 March 2015: – FY15 H1 reported results includes FRN only including six months of 96FM. • Cost and operational synergies have been implemented. • Macquarie Media expects FY16 EBITDA will be in the range between $20m and $25m. • Total metro market industry growth of 4.6% for the year to December 2015. 26 2016 HALF-YEAR RESULTS Advertising Other Total Revenue Costs EBITDA EBIT EBITDA Margin FY16 H1 A$m 64.9 4.0 69.0 (57.0) 12.0 10.7 FY15 H1 A$m 50.4 3.3 53.7 (44.9) 8.8 7.4 17.3% 16.4% % change 29.0% 20.9% 28.5% (27.0%) 35.9% 44.6% CURRENT TRADING ENVIRONMENT 8 OUTLOOK GREG HYWOO D, CEO • Trading in the first seven weeks of FY16 H2 saw revenues 1% to 2% below last year, a solid performance in the context of continued weak print trends. − In the same period, Domain.com.au* continued to perform strongly with organic revenue growth of 25%. • Our focus in the second half is on continuing Domain’s strong growth, driving our emerging businesses, and delivering on our cost reduction programs. * Domain.com.au includes digital listings and media and developer revenue across Domain main site, mobile sites and mobile ap ps and reflects organic growth. 28 2016 HALF-YEAR RESULTS OEOCU _n_Z>ZO_>rm mm no; wmerAw 92?35 Reported 4D Less Significant FY16 H1 items 27 December 2015 Total revenue Associate profit/(loss) Expenses Operating EBITDA Depreciation and amortisation EBIT Net interest expense Net profit/(loss) before tax Tax (expense)/benefit $m FY16 H1 $m FY15 H1 $m 958.1 958.1 932.3 2.7 - 2.7 2.7 0.7 (799.7) (799.7) (775.1) 98.6 $m Trading Performance for continuing businesses* 62.5 $m Less Trading Operations Performance for Closed / continuing Disposals businesses 958.1 (862.3) $m Trading Performance excluding significant items 62.5 161.1 161.1 157.9 - (34.7) (34.7) (33.5) 63.9 62.5 126.4 126.4 124.4 (7.0) - (7.0) (7.0) (8.6) 56.9 62.5 119.4 119.4 115.7 (34.7) (24.0) (10.1) (34.1) (34.1) (33.7) Net Profit/(loss) after Tax from continuing operations 33.0 52.4 85.4 85.4 82.0 Net profit attributable to noncontrolling interest (5.6) - (5.6) (5.6) (0.4) 27.4 1.2 52.4 79.8 3.4 79.8 3.4 81.6 3.5 Net profit/(loss) attributable to members of the Company Earnings per share * FY15 H1 includes the disposal of 96FM and the closure costs of Chullora and Tullamarine. 30 2016 HALF-YEAR RESULTS Revenue EBITDA FY16 H1 FY15 H1 % FY16 H1 FY15 H1 % A$m A$m change A$m A$m change Australian Metro Media 458.0 417.5 9.7% 97.2 84.7 14.7% Australian Community Media* 257.1 282.6 (9.0%) 45.2 56.6 (20.1%) New Zealand Media* 166.0 179.5 (7.6%) 27.6 31.3 (11.7%) 69.0 53.7 28.5% 12.0 8.8 35.9% 8.1 10.0 (19.7%) (20.9) (22.0) 4.9% Total 958.1 943.3 1.6% 161.1 159.4 1.1% New Zealand Media* $NZD 182.4 197.0 (7.4%) 30.3 34.4 (11.9%) Radio Corporate and Other Note: * Australian Community Media and New Zealand Media – Revenue includes external printing revenue (only included in the segment slide). 31 2016 HALF-YEAR RESULTS • Proceeds from asset sales and investments in FY16 H1 of $67m includes the sale of Chullora and Tullamarine Printing sites. • Net investment of $19m includes acquisition of Huffington Post, Open Air Cinema, Bodypass, Homepass and Nabo. • FY16 capital expenditure expected in the vicinity of $90m. Cash from trading Proceeds from asset sales and investments Net other inc exchange movements Cash In Flows Net finance charges Tax payments Investment in acquired business/ventures Investment in PP&E and software Restructure/redundancy payments Loans (repaid)/advanced Market buy-back Dividends paid Cash Out Flows Net Cash In / (Out) Flow Net Debt at beginning of period Net Debt / (Cash) At End of Period 32 2016 HALF-YEAR RESULTS FY16 H1 A$m 153 67 5 225 9 35 19 42 35 18 74 52 283 (58) (64) FY15 H1 A$m 139 9 6 155 7 17 62 30 21 1 47 186 (31) (68) (6) (37) • Total interest bearing liabilities reduced to $164m with early repayment of Syndicated Facility. • FY16 net interest expense expected to be $11m. 33 2016 HALF-YEAR RESULTS A$m Total interest bearing liabilities Debt related derivatives Cash and cash equivalents Net Debt/ (Cash) EBITDA (last 12 months) Net Debt / (Cash) to EBITDA Net interest (last 12 months) EBITDA to Net Interest Actual Dec 15 164 (10) (160) (6) 291 (0.0) 15 19.9 Actual Jun 15 283 (5) (343) (64) 289 (0.2) 16 17.8 Actual Dec 14 245 3 (285) (37) 288 (0.1) 16 18.2 Actual Jun 14 355 30 (453) (68) 313 (0.2) 10 30.0 250 Undrawn • Net cash position of $6.2m at December 2015. • Chullora Lease repayment in FY16 H1. • Repayment in FY16 H1 of $125m on drawn Syndicated Facility. • Repayment of $28.2m on drawn USPP in January 2016. 200 150 $Am • Standard & Poor’s reviewed Fairfax’s BB+ credit rating (stable). Drawn 100 50 FY16 FY17 Facilities as at December 2015 FY18 FY19 FY20 Limit Usage $m $m 28.2 28.2 Current USPP-2003 series Non Current 325.0 0.0 Bank Revolver Macquarie Media 50.0 40.8 USPP 2007 series 82.1 37.7 82.1 0.0 523.0 151.1 Bank Revolver Australia Bank Revolver New Zealand Total 34 2016 HALF-YEAR RESULTS um no; wmerAw 92?35 >U_umZU_Omm um no; wmerAw 92?35 Reported 4D Less Significant FY16 H1 items 27 December 2015 Total revenue Associate profit/(loss) Expenses Operating EBITDA Depreciation and amortisation EBIT Net interest expense Net profit/(loss) before tax $m $m Trading Performance excluding significant items $m Less Trading Operations Performance for Closed / continuing Disposals businesses $m Trading Performance for continuing businesses* FY16 H1 $m FY15 H1 $m 958.1 - 958.1 958.1 932.3 2.7 - 2.7 2.7 0.7 (862.3) 62.5 (799.7) (799.7) (775.1) 98.6 62.5 161.1 161.1 157.9 - (34.7) (34.7) (33.5) 126.4 126.4 124.4 (7.0) (7.0) (8.6) (34.7) 63.9 62.5 (7.0) - 56.9 62.5 119.4 119.4 115.7 (24.0) (10.1) (34.1) (34.1) (33.7) Net Profit/(loss) after Tax from continuing operations 33.0 52.4 85.4 85.4 82.0 Net profit attributable to noncontrolling interest (5.6) - (5.6) (5.6) (0.4) 27.4 1.2 52.4 79.8 3.4 79.8 3.4 81.6 3.5 Tax (expense)/benefit Net profit/(loss) attributable to members of the Company Earnings per share 37 2016 HALF-YEAR RESULTS Reported 4D Less Significant FY15 H1 item 28 December 2014 Total revenue Associate profit/(loss) Expenses Operating EBITDA Depreciation and amortisation EBIT Net interest expense Net profit/(loss) before tax Tax expense/(benefit) $m $m 943.3 - 0.7 - (858.8) 85.3 74.1 Trading Performance excluding significant items Less Trading Operations Performance for Closed / continuing Disposals* businesses $m $m FY15 H1 $m 943.3 (11.0) 932.3 0.7 - 0.7 (784.7) 9.6 (775.1) 74.1 159.4 (1.5) 157.9 - (33.7) 0.1 (33.5) 51.7 74.1 125.7 (1.3) 124.4 (8.6) - 43.0 74.1 117.1 (1.3) 115.8 - (33.7) (33.7) (8.6) - (8.6) (16.3) (17.4) (33.7) Net Profit/(loss) after Tax from continuing operations 26.7 56.7 83.4 (1.3) 82.0 Net profit attributable to noncontrolling interest (0.4) - (0.4) - (0.4) Net profit/(loss) attributable to members of the Company 26.3 56.7 83.0 (1.3) 81.6 Earnings per share 1.1 * Includes the disposal of 96FM and the closure costs of Chullora and Tullamarine.. 38 2016 HALF-YEAR RESULTS 3.5 3.5 • Change in Australian Printing allocation with all printing sites break-even at EBIT. All profits passed onto business units. Total Revenue Internal Revenue Net Revenue Associate profit (loss) Costs EBITDA Segment allocation Australian Metropolitian Media Australian Community Media New Zealand Media EBITDA EBIT EBITDA Margin 39 2016 HALF-YEAR RESULTS FY16 H1 A$m 133.2 (103.2) 30.0 (18.4) 11.7 FY15 H1 A$m 156.2 (129.2) 27.0 0.0 (1.0) 26.0 % change (14.7%) (20.2%) 11.4% 1,741.8% (55.1%) 5.9 3.7 2.1 11.7 15.2 9.7 1.1 26.0 (61.5%) (61.5%) 94.8% (55.0%) 0.3 6.6 (95.4%) 8.8% 16.7% • Includes costs associated with closure of Chullora and Tullamarine printing sites. • Tullamarine sold for $16m in July 2015. • Chullora sold for $45m in August 2015. 40 2016 HALF-YEAR RESULTS FY16 H1 A$m 8.1 FY15 H1 A$m 10.0 Associate Profit (Loss) Costs 1.9 (30.9) (3.2) (28.8) EBITDA (20.9) (22.0) 4.9% EBIT (18.8) (13.7) (37.5%) Net Revenue % change (19.7%) 160.7% (7.3%) • FY16 H1 includes six months of MRN post merger and six months of MMP post acquisition. Note: Domain Group includes MMP. 41 2016 HALF-YEAR RESULTS FY16 H1 A$m FY15 H1 A$m % change Macquarie Media (3.0) - Domain Group (2.0) - Other (0.5) (0.4) 28% Total Non-Controlling Interest (5.6) (0.4) 1234% A$m FY16 H1 FY15 H1 (34.3) (19.4) 1.8 1.1 Impairment of intangibles, investments, and property, plant and equipment, net of tax (32.5) (18.3) Restructuring and redundancy charges (28.2) (54.7) 8.3 16.3 Restructuring and redundancy, net of tax (19.9) (38.3) NET SIGNIFICANT ITEMS, NET OF TAX (52.4) (56.7) Impairment of intangibles, investments and property, plant and equipment Income tax benefit Income tax benefit 42 2016 HALF-YEAR RESULTS 400.0 Other Online Revenue Metro Online Revenue 341 350.0 300.0 281 $m 250.0 Includes traffic fee of $9.9m 309 295 232 196 200.0 158 150 140 150.0 164 120 100.0 50.0 H1 11 Digital % total revenue 43 2016 HALF-YEAR RESULTS FY 11 10% H1 12 FY 12 13% H1 13 FY 13 14% H1 14 FY 14 17% H1 15 FY 15 19% H1 16 20% • Digital Subscriptions: Includes The Sydney Morning Herald, The Age and The Australian Financial Review. • Australian Media Display & Other: Impacted by increased competition and fragmentation. Allure and Weatherzone strong advertising growth. • Transactions: Includes Weatherzone, Allure and Tenderlink. • Online Classifieds: Strong growth from Domain. Note: FY15 H1 and FY14 H1 restated, Transactions Advertising Revenue, Domain Display Advertising, Drive and Employment moved to Aust Media Display & Other. 44 2016 HALF-YEAR RESULTS 10.9 MILLION DE-DUPLICATED AUDIENCE PRINT WEB* TABLET/MOBILE 6.2m 6.4m 2.1m PRINT READERS VISIT WEBSITES USE NEWS SITES OR APPS ON TABLET OR MOBILE DEVICE 4.1m 4.1m 1.2m READERS OF NATIONAL AND METRO NEWSPAPERS NATIONAL AND METRO NEWS WEBSITES ACCESS NEWS ON TABLET 2.0m 1.1m 1.4m READERS OF INSERTED MAGAZINES REGIONAL WEBSITES ACCESS NEWS ON MOBILE 3.1m READERS OF REGIONAL/ COMMUNITY NEWSPAPERS Source: emmaTM conducted by Ipsos MediaCT, people 14+ for the 12 months ending November 2015, Nielsen Online Ratings November 2015 people 14+ only. Last four weeks. * Nielsen Online Ratings November 2015, Ppl 2+. 45 2016 HALF-YEAR RESULTS Combined web & mobile/tablet 5.4 million WEB Total 4.3m MOBILE /TABLET Total 2.1m Combined print & mobile/tablet 5.2 million PRINT Total 4.0m Combined web & print 7.0 million Source: emmaTM conducted by Ipsos MediaCT, people 14+ for the 12 months ending November 2015, Nielsen Online Ratings November 2015, people 14+ only. Last four weeks net. (Fairfax National and Metro mastheads = total masthead readership for AFR, SMH, The Age, web/mobile usage Brisbane Times, web usage WAToday). Last four weeks net. 46 2016 HALF-YEAR RESULTS Source: emmaTM conducted by Ipsos MediaCT, people 14+ for the 12 months ending November 2015, Nielsen Online Ratings November 2015, people 14+ only. Last four weeks. Total masthead audience numbers are de-duplicated last four weeks (L4W). Mastheads include Mon-Sun net Press L4W, Desktop/Mobile/tablet net L4W. 47 2016 HALF-YEAR RESULTS aw no; mmerAw 32?in