Senior Investment Analyst, Black Crane Investment Mgmt Ltd

Perry Tan, CFA, CAIA, FRM

Senior Investment Analyst

Black Crane Investment Mgmt Ltd

Equity Bottom-Up

<p>The company is:</p><ol><li>Trading cheaply by all traditional valuation metrics with historical EV/EBITDA of 3.49x, EV/EBIT of 5.21x, P/E of 5.6x, FCFF yield of 18.5% and a dividend yield of 11.4%</li><li>A market leader in its respective core businesses of print and radio</li><li>Experiencing a lack of interest because it is in a declining sector</li><li>A new issue (through a spin off) which means that the “cheapness” is not captured on the investment screens of typical value or dividend funds</li><li>Prime for industry consolidation</li></ol>

The company is:Trading cheaply by all traditional valuation metrics with historical EV/EBITDA of 3.49x, EV/EBIT of 5.21x, P/E of 5.6x, FCFF yield of 18.5% and a dividend yield of 11.4%A market leader in its respective core businesses of print and radioExperiencing a lack of interest because it is in a declining sectorA new issue (through a spin off) which means that the “cheapness” is not captured on the investment screens of typical value or dividend fundsPrime for industry consolidation

NZME Limited

NZME - Too Cheap to Ignore