Clear Channel Outdoor (CCO) Deutsche Bank 32nd Annual Leveraged Finance Conference summary

Strategic realignment and asset sales

• Shifted focus to higher-margin U.S. businesses, especially airports and Americas segment, with strong operational execution in both regions.

• Sold underperforming European South assets (Switzerland, Italy, France), with Spain pending regulatory approval; Europe North is up for sale as a platform.

• Latin America also put up for sale to streamline operations and focus on core earnings drivers.

• Asset sales are not expected to materially deleverage the company but will allow for some debt paydown and reinvestment.

• Corporate expense savings of $30 million targeted over time as the business shrinks post-Europe divestitures.

Core business performance and growth drivers

• Airports business saw 31% revenue growth in H1, with sustainable momentum driven by strategic focus on larger airports, digital assets, and long-term sponsorships.

• Margins in airports elevated above 23% due to revenue growth and lingering COVID-related site lease relief, expected to normalize to low 20s by 2025.

• Americas Roadside segment grew 3% in H1, with local sales outperforming national; national softness attributed to cyclical vertical declines and agency dynamics.

• Digital assets represent 5% of inventory but generate about a third of revenue, with significant expansion potential constrained mainly by regulatory hurdles.

• No notable increase in cancellations; deal activity and guidance for Q3 remain positive.

Capital structure and financial outlook

• Successfully refinanced term loans and extended maturities, creating runway and flexibility for opportunistic debt reduction.

• Proceeds from asset sales prioritized for debt paydown, with flexibility to reinvest in the business or make par asset offers on remaining debt.

• Free cash flow expected to turn positive in the second half of the year, with continued improvement into 2025 as interest costs are managed and asset sales close.

• Leverage remains high (around 9x), with deleveraging to come from EBITDA growth, debt reduction, and potential joint ventures or other financial strategies.

• M&A activity in the industry has slowed due to high valuations and interest rates; future deals will be selective and focused on strategic fit within existing markets.