Southern Cross Media Group (SXL) investor relations material

Deal rationale and strategic fit

• The merger creates an integrated national media organization with extensive scale and reach across metropolitan and regional Australia, combining complementary TV, radio, streaming, audio, digital, and publishing assets to form a leading Australian-owned multimedia platform.

• The combined entity targets high-value 25–54 audiences across digital video, audio, and publishing, enhancing reach, monetization, and campaign targeting for advertisers.

• The deal is positioned as a merger of equals, with both companies advocating for industry consolidation to compete against global media giants and deliver world-class content to national and local audiences.

• The combined group will offer a one-stop shop for advertisers, leveraging cross-platform promotion, data insights, and integrated content strategies.

• Supports a cohesive strategy for news, sport, and entertainment under a single streamlined offering.

Financial terms and conditions

• All-scrip transaction: SWM/SCA shareholders receive 0.1552 SCA shares for each SWM share, resulting in SCA shareholders owning 50.1% and SWM shareholders 49.9% of the merged group.

• The merger will be implemented via a scheme of arrangement, with both boards unanimously recommending the deal.

• The board will initially have four Seven (SWM) and three SCA representatives; Kerry Stokes will chair until Feb 2026, succeeded by Heath MacKay-Cruise.

• Combined day-one market capitalization estimated at $417 million, based on last close prices as of 29 September 2025.

• The transaction is expected to be over 100% EPS accretive to SCA shareholders on an FY26F basis, assuming $30 million in cost synergies.

Synergies and expected cost savings

• Annual pre-tax cost synergies of $25–$30 million are anticipated within 18–24 months post-completion.

• Cost savings will come from rationalizing duplicated corporate costs, economies of scale, operational efficiencies, and consolidating facilities.

• Additional revenue synergies are expected from cross-platform advertising, bundled offerings, and integrated content strategies.

• Many synergies, especially in cost, are only achievable through the merger, not standalone.

• Further upside anticipated from potential revenue synergies and digital monetization.