Clear Channel Outdoor (CCO) investor relations material

Strategic Vision and Transformation

• Refocused as a pure-play U.S. out-of-home advertising company, divesting all international operations and lower-margin businesses to simplify and de-risk the business.

• Strategy centers on customer centricity, digitization, advanced measurement, analytics, and leveraging technology such as AI and programmatic to enhance sales productivity and campaign customization.

• Emphasizes cash generation, debt reduction, and a public LBO vision, with AFFO targeted to reach $200 million by 2028 from $14 million in 2023.

• Focused on operational agility, cost discipline, and margin expansion, with a goal to reduce leverage from over 11x in 2024 to 7–8x by 2028.

• Enhanced competitive differentiation through technology leadership, premium locations, and a hard-to-replicate footprint.

Revenue Growth Drivers and Business Development

• Key growth drivers include core sales execution, digital acceleration, and disruptive discontinuities such as new verticals, products, and agency partnerships.

• Digital revenue expected to reach 46% of total by 2028, with digital out-of-home forecasted to grow faster than traditional formats.

• Programmatic revenue has more than tripled since 2019, with new tech like Clearcast Digital enabling network buying and rapid campaign execution.

• Vertical strategies, especially in pharma, have delivered significant results, with out-of-home campaigns driving a 76% higher conversion rate for exposed audiences.

• Airport segment streamlined from 114 to 63 airports, boosting EBITDA and digital revenue, with continued investment in high-impact assets and exclusivity deals.

Financial Roadmap and Capital Allocation

• Revenue CAGR targeted at 4–5% and adjusted EBITDA at 6–8% through 2028, with margin expansion from 31% to 34%.

• Net debt reduction goal of $1 billion by 2028, using proceeds from asset sales and organic cash flow.

• CapEx to remain disciplined, focused on high-return digital conversions (30% IRR) and selective airport investments.

• No near-term debt maturities and a well-layered maturity profile, with recent refinancing extending weighted average debt maturity to 4.85 years.

• Potential for REIT conversion beyond 2028 if leverage falls to 5x or below, opening new investor bases.