q116 nielsen earnings webcast final

NYSE: NLSN

WEDNESDAY APRIL 20, 2016 8:00AM ET

1ST QUARTER 2016 RESULTS

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NLSN 1Q 2016 Results

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

The following discussion contains forward-looking statements, including those about Nielsen’s outlook and

prospects, that relate to the Private Securities Litigation Reform Act of 1995. Forward-looking statements

are those which are not historical facts. These and other statements that relate to future results and

events are based on Nielsen’s current expectations as of April 20, 2016.

Our actual results in future periods may differ materially from those currently expected because of a

number of risks and uncertainties. The risks and uncertainties that we believe are material are outlined in

our disclosure filings and materials, which you can find on http://ir.nielsen.com. Please consult these

documents for a more complete understanding of these risks and uncertainties. We disclaim any intention

or obligation to update or revise any forward-looking statements, whether as a result of new information,

future events or otherwise, except as may be required by law.

Our outlook is provided for the purpose of providing information about current expectations for 2016. This

information may not be appropriate for other purposes.

http://ir.nielsen.com/

MITCH BARNSCHIEF EXECUTIVE OFFICER

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FIRST QUARTER 2016 OVERVIEW

CONSISTENT, RESILIENT BUSINESS MODEL DELIVERING SOLID GROWTH AND PROFITABILITY

• Strong Q1 performance

- Revenue of $1.5 billion…up 5.2% constant currency

- Adjusted EBITDA of $402 million…up 7.2% constant currency

- Adjusted net income per share of $0.51…up 10.9% constant currency

• Executing on our balanced capital allocation framework

- Board approval for dividend increase of 11%, to $0.31 per share

- ~$800 million remaining under existing share repurchase authorization

• Reiterating 2016 guidance

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• Television: acquired set-top box data from DISH…panels + big data• Digital Ad Ratings: new client wins and further international expansion• Digital Content Ratings: growing client adoption; syndication on track• Total Content Ratings: ~140 networks; expanding coverage• Updating the Currency: industry discussions progressing well, getting more specific• Pointlogic: cross-media planning and activation• Digital Audio Ratings: measuring radio listening via mobile and web

Watch: Total Audience Measurement

Marketing Effectiveness: Investments bolstering analytics capabilities

Buy: Total Consumer Measurement

UPDATE ON KEY STRATEGIC INITIATIVES

• Nielsen Marketing Cloud: leveraging eXelate• Measurement + Analytics: unique ability to link and increase value of each

• • Emerging markets: +10%• Developed markets: growth shoots in Europe• Growth with retailers: Walmart

• eCommerce measurement: US enhancements

JAMERE JACKSON CHIEF FINANCIAL OFFICER

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TOTAL NIELSEN RESULTS – 1Q 2016 ($ in millions except per share amounts, growth in constant currency, excluding Free Cash Flow)

• 39th straight quarter of constant currency revenue growth

• Solid revenue growth in Watch and Buy

• Productivity pipeline driving margins

• Free cash flow in line with seasonal trends

1Q 2016

1Q 2015 V%

Revenues $1,487 $1,458 5.2%

Adjusted EBITDA $402 $380 7.2%

Adjusted EBITDA margin % 27.0% 26.1% 49 bps

Adjusted Net Income (ANI) $187 $173 9.4%

Diluted ANI per share (a) $0.51 $0.46 10.9%

Free Cash Flow $14 $(1) nm

(a) Calculated using weighted average shares outstanding of 365.2 million for 1Q 2016 and 375.4 million for 1Q 2015. See appendix for detail

Highlights

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WATCH SEGMENT RESULTS ($ in millions, growth in constant currency)

REVENUE

PROFITABILITY

1Q DYNAMICS

Total Watch

Adjusted EBITDA

Margin

$694

$297

42.8%

1Q 16

$660

$278

42.1%

1Q 15

6.3%

7.2%

38 bps

V%

• Strong revenue growth +6.3% Audience Measurement (Video/Text): +7.5% Audio +0.8% Marketing Effectiveness +28.8% Other Watch… NRG exit (18.6%)

• Growth initiatives are delivering

Continued Digital Ad Ratings momentum Digital Content Ratings rollout progressing well NCS and eXelate driving new client wins

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BUY SEGMENT RESULTS ($ in millions, growth in constant currency)

REVENUE

PROFITABILITY

1Q DYNAMICS

Developed

Adjusted EBITDA

Margin

$550

$114

14.4%

1Q 16

$549

$110

13.8%

1Q 15

2.0%

7.5%

43 bps

V%

Emerging $243 $249 10.0%Total Buy $793 $798 4.3%

• Solid revenue growth +4.3%

• Core measurement solid…US & Europe

• Double digit emerging markets growth

• Discretionary spend remains steady overall

• 7th straight quarter of margin expansion

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FOREIGN CURRENCY IMPACT

(a) Projected impact assumes rates in effect at 4/18/16 remain in effect for the balance of 2016. Also based on company estimates for future quarters on distribution of revenue and EBITDA by currency.

Note: We report on a constant currency basis to reflect operating performance

60%9%

3%4%3%

21%

USD EUR CADGBP CNY Other

2015 CURRENCY PROFILE - REVENUE PROJECTED FX IMPACT(a): REPORTED VS CONSTANT CURRENCY

1Q16 2Q16E 3Q16E 4Q16E FY16E

(320)

(180)

(40)

60

(120)(140)(160)

20

60

(50)

Rev (bps) EBITDA (bps)

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2016 GUIDANCE(Revenue and adj. EBITDA margin growth in constant currency)

OTHER FINANCIAL METRICS

Total Revenue 4.0% - 6.0%

Adj. EBITDA margin growth 50 - 70 bps

Adj. Net Income Per Share $2.83 - $2.93

Free Cash Flow ~$950M

Net book interest $325M- $335M

Cash Taxes 14.0% - 14.5%

Cash restructuring $50M - $75M

Est. wtd. avg. diluted shares outstanding for FY 2016

~361M

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A&Q

APPENDIX

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CERTAIN NON-GAAP MEASURESOverview of Non-GAAP PresentationsWe use the non-GAAP financial measures discussed below to evaluate the results of our operations. We believe that the presentation of these non-GAAP measures provides useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.

Constant Currency PresentationWe evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. No adjustment has been made to foreign currency exchange transaction gains or losses in the calculation of constant currency net income.

Net Debt and Net Debt Leverage RatioThe net debt leverage ratio is defined as net debt (gross debt less cash and cash equivalents) as of the balance sheet date divided by Adjusted EBITDA for the twelve months then ended. Net debt and the net debt leverage ratio are commonly used metrics to evaluate and compare leverage between companies and are not presentations made in accordance with GAAP.

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CERTAIN NON-GAAP MEASURES(continued)

Adjusted EBITDAWe define Adjusted EBITDA as net income or loss from our consolidated statements of operations before interest income and expense, income taxes, depreciation and amortization, equity in net income of affiliates, restructuring charges, goodwill and intangible asset impairment charges, stock-based compensation expense and other non-operating items from our consolidated statements of operations as well as certain other items considered unusual or non-recurring in nature. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors.

Adjusted Net IncomeWe define Adjusted Net Income as net income or loss from our consolidated statements of operations before income taxes, depreciation and amortization associated with acquired tangible and intangible assets, equity in net income of affiliates, restructuring charges, goodwill and intangible asset impairment charges, other non-operating items from our consolidated statements of operations and certain other items considered unusual or non-recurring in nature, reduced by cash paid for income taxes.

Free Cash FlowWe define free cash flow as net cash provided by operating activities, plus contributions to the Nielsen Foundation, less capital expenditures, net. It does not represent residual cash flows entirely available for discretionary purposes, for example, the repayment of principal amounts borrowed is not deducted from free cash flow. We believe providing free cash flow information provides valuable supplemental liquidity information regarding the cash flow that may be available for discretionary use by us in areas such as the distributions of dividends, repurchase of common stock, repayment of debt obligations or to fund our strategic initiatives, including acquisitions, if any. Free cash flow is not a presentation made in accordance with GAAP.

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ADJUSTED NET INCOME RECONCILIATION: Q1($ in millions except per share amounts)

(a) See footnotes on next page

Quarter ended March 31, (Unaudited)

2016 2015Net income $ 101 $ 63

Interest expense, net 78 72Provision for income taxes 44 38

Depreciation and amortization 147 142EBITDA 370 315

Other non-operating expense, net 1 26Restructuring charges 10 14

Stock-based compensation expense 13 14Other items (a) 8 11

Adjusted EBITDA 402 380Interest expense, net (78) (72)

Depreciation and amortization (147) (142)Depreciation and amortization of acquisition-related tangible and intangible

assets 52 50

Cash paid for income taxes (29) (29)Stock-based compensation expense (13) (14)

Adjusted net income $ 187 $ 173Adjusted net income per share of common stock, diluted $0.51 $0.46

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ADJUSTED NET INCOME RECONCILIATION(continued)

(a) For the three months ended March 31, 2016 and 2015, other items primarily consists of non-recurring costs.

Weighted-average shares of common stock outstanding as of quarter ended March 31, 2016, basic 361,580,670

Dilutive shares of common stock from stock compensation plans 3,620,469

Weighted-average shares of common stock outstanding, diluted 365,201,139

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($ in millions) ADJUSTED EBITDA RECONCILIATION

2016 Reported

2015Reported % V Reported

2015 Constant Currency

% V Constant Currency

Buy $114 $110 3.6% $106 7.5%

Watch $297 $278 6.8% $277 7.2%

Corporate $(9) $(8) NM $(8) NM

Total $402 $380 5.8% $375 7.2%

QUARTER ENDED MARCH 31,

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(continued, $ in millions)ADJUSTED NET INCOME RECONCILIATION

2016 Reported

2015Reported

% V Reported



Adjusted Net Income $187 $173 8.1% $171 9.4%

QUARTER ENDED MARCH 31,

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2016Reported

2015 Reported

% V Reported



Developed Markets $550 $549 0.2% $539 2.0%Emerging Markets 243 249 (2.4)% 221 10.0% Buy $793 $798 (0.6)% $760 4.3%

Video and Text $472 445 6.1% $439 7.5%Audio 120 120 -- 119 0.8%Marketing Effectiveness 67 52 28.8% 52 28.8%Other Watch 35 43 (18.6)% 43 (18.6)% Watch $694 $660 5.2% $653 6.3%Total $1,487 $1,458 2.0% $1,413 5.2%

REVENUE RECONCILIATIONQUARTER ENDED MARCH 31,

($ in millions)

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FREE CASH FLOW RECONCILIATION($ in millions)

QUARTER ENDED MARCH 31 2016 2015

Net cash provided by operating activities $87 $101

Plus: Contribution to the Nielsen Foundation 36 --

Less: Capital expenditures, net (109) (102)

Free cash flow $14 $(1)

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DEBT CAPITAL TABLE

(a) Adjusted EBITDA calculated based on last twelve months basis(b) Reflects Net Debt (gross debt minus deferred financing fees and cash), divided by Adjusted EBITDA calculated on last twelve months basis (c) Excludes capital leases

DEBT CAPITAL TABLE

3/31/16 12/31/15 Change

Loan Debt (secured) $3,820 $3,496 $324

4.50% Sr. Notes (10/1/20) 792 792 --

5.50% Sr. Notes (10/1/21) 617 617 --

5.00% Sr. Notes (4/15/22) 2,284 2,284 --

Capital lease/misc. debt 147 149 (2)

Total Debt $7,660 $7,338 $322

Less Cash 432 357 75

Net Debt $7,228 $6,981 $247

Adjusted EBITDA(a) $1,880 $1,858 22

Net Debt Ratio (b) 3.84x 3.76x 0.08x

Weighted avg. interest rate (c) 4.05% 4.04% 1 bps

($ in millions)

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SELECTED FINANCIAL METRICS & BALANCE SHEET ITEMS

FINANCIAL METRICS1Q 16

Free Cash Flow $14Capital Expenditures, net $109D&A $147Net Book Interest $78Cash Taxes $29Cash Restructuring $15

Wtd. avg. diluted shares 365.2

BALANCE SHEET – 3/31/16Gross Debt $7,660Cash $432Net Debt $7,228

Net Debt Ratio (a) 3.84x

CURRENT DEBT MATURITY PROFILE – 3/31/16(b)

(a) Reflects net debt (gross debt minus deferred financing fees and cash), divided by Adjusted EBITDA calculated on last twelve months basis(b) Excludes Capital Leases ($140M)

($ in millions)

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