ubs 46th annual global media and communications...

UBS 46th Annual Global Media and Communications Conference

2

FORWARD-LOOKING STATEMENTS

This presentation contains certain forward-looking statements that are subject to risks and uncertainties. These statements are based on management’s current knowledge and

estimates of factors affecting the Company and its operations. Statements in this presentation that are forward-looking include, but are not limited to, the expected benefits of the

acquisition of Time Inc., including the expected synergies from the transaction and the combined company’s prospects for growth and increasing shareholder value.

Actual results may differ materially from those currently anticipated. Factors that could adversely affect future results include, but are not limited to, downturns in national

and/or local economies; a softening of the domestic advertising market; world, national or local events that could disrupt broadcast television; increased consolidation among

major advertisers or other events depressing the level of advertising spending; the unexpected loss or insolvency of one or more major clients or vendors; the integration of

acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing, syndicated programming or other costs;

changes in television network affiliation agreements; technological developments affecting products or methods of distribution; changes in government regulations affecting the

Company’s industries; increases in interest rates; the consequences of acquisitions and/or dispositions; the risks associated with the Company’s recent acquisition of Time Inc.,

including: (1) litigation challenging the acquisition; (2) the Company’s ability to retain key personnel; (3) competitive responses to the acquisition; (4) unexpected costs, charges

or expenses resulting from the acquisition; (5) adverse reactions or changes to business relationships resulting from the acquisition; (6) the Company’s ability to realize the

benefits of the acquisition of Time Inc.; (7) delays, challenges and expenses associated with integrating the businesses; and (8) the Company’s ability to comply with the terms

of the debt and equity financings entered into in connection with the acquisition; and the risk factors contained in the Company’s most recent Form 10-K and Form 10-Q filed

with the Securities and Exchange Commission, which are available on the SEC’s website at www.sec.gov. The Company undertakes no obligation to update any forward-

looking statement, whether as a result of new information, future events or otherwise.

3

TODAY’S AGENDA

❖Meredith Overview

❖National Media Group Growth Strategies

❖Local Media Group Growth Strategies

❖Financial Strategy

❖Q&A

THE NEW MEREDITH

> Unparalleled portfolio of iconic, trusted brands, reaching 175 million

Americans across channels — digital and print to social and TV

> Engaging, inspiring and activating 110 million U.S. adult women including

80% of all millennial women and 65% of all Latinas

> Readership of 120 million and paid subscriptions of more than 40 million

> Top digital company with 140 million unique visitors, 9 billion

video views annually and 265 million social followers

> Strong, highly-profitable local TV portfolio with 11% U.S. reach

> Data powerhouse with 175 million direct consumer relationships

> World’s second-largest brand licensor, led by consumer powerhouse

Better Homes & Gardens brand

4

Balanced and Diversified Revenue Mix

5

~22%

~30%

~18%

~10%~5%

~15%

Fiscal 2019 Expected Revenue: $3.0-$3.2 billion(1)

(1) Unchanged from the guidance originally communicated on August 10, 2018.

LMG Advertising

NMG Print Advertising

NMG Digital Advertising

Other

NMG Consumer

55%40%

5%

Consumer

Other

Advertising

Consolidated Basis Segment Basis

LMG Consumer

EXECUTIVE SUMMARY

• Time Inc. acquisition is a positive catalyst for growth

• Consumers drive 40% of revenue, with many growth opportunities

• Asset sale process proceeding well and meeting expectations

• Synergy work exceeding expectations

• Local Media Group delivering record results, driven by political and digital

• On track to pay down $500 million of debt in 1st half fiscal 2019

6

Meredith is positioned on a growth path not previously achievable

7

MEREDITH’S NEAR-TERM FINANCIAL GOALS

$1 Billion

Debt Reduction

$1 Billion

EBITDA Generation

in Fiscal 2019 in Fiscal 2020

8

TODAY’S AGENDA





❖Q&A

THE #1 OWNER OF PREMIUM NATIONAL MEDIA BRANDS

ENTERTAINMENT& FASHION

FOOD PARENTING HOME LUXURY & TRAVEL

HEALTH & WELLNESS

10

PEOPLE: THE WORLD’S #1 ENTERTAINMENT BRAND

PRINT DIGITAL PLATFORMS MOBILE SOCIAL VIDEO

40 MILLIONREADERS

+7%

80 MILLION MONTHLY UNIQUE VISITORS

+50% YOY

45 MILLIONMONTHLY UNIQUE VISITORS

+58% YOY

35 MILLION SOCIAL FOLLOWERS

+18% YOY

375 MILLIONTOTAL VIDEO VIEWS IN 2017

+34% YOY

11

NATIONAL MEDIA GROUP GROWTH STRATEGIES

• Improving the advertising performance of acquired properties to Meredith’s historical levels

• Aggressively growing revenue and raising profit margins on acquired digital properties to MDP’s levels

• Completing the divestiture process of media assets not core to our business

• Fully realizing annual cost synergies of $550 million in the first two full years of operations

Successfully integrate Time Inc. acquisition by:

Grow consumer-related revenue streams, including:• Subscription

• Brand licensing

• Affinity marketing

• eCommerce

0

100

200

300

400

500

600

FY 2012 FY 2017

1212

$ in millions.

Based on as reported figures.

PrintDigital

5-YEAR CAGR

Digital: 27%$492 $520

10% 31%

90%69%

MEREDITH ACHIEVED TOTAL ADVERTISING REVENUE GROWTH IN FISCAL 2017 FUELED BY DIGITAL CHANNELS

Unique Visitors in the U.S.

1 Google Sites 245.5

2 Oath 216.1

3 Facebook 210.1

4 Microsoft Sites 202.7

5 Amazon Sites 197.3

6 Comcast NBCUniversal 163.0

7 CBS Interactive 153.8

8 Twitter 151.3

9 Apple 148.8

10 Meredith 140.0

10 PayPal 140.0

12 Turner Digital 138.4

13 Snapchat 131.9

14 Wikimedia 127.7

15 Wal-Mart 127.2

13

TOP DIGITAL MEDIA COMPANY

#’s in millions.

Source: comScore Dec. 2017.

Diversified digital advertising revenue streams

+140 million U.S. monthly unique visitors • #1 network for women and millennials

• Depth and scale across all key content and ad categories, including lifestyle and food

• Achieve video scale with more than 9 billion annual views

• First party data drives unique/actionable insights/analytics

Unparalleled suite of brands

Proprietary advertising technology delivering strong results

14

50

125

200

275

350

425

500

CY2011 CY2013 CY2015 CY2017

Tota

l Audie

nce (

in m

illions)

GROW CONSUMER-RELATED REVENUE STREAMS

Audience Growth Revenue Streams

Print Digital

Gross audience

1 Subscription

2 Brand licensing

3 Affinity marketing

4 eCommerce

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CONDUCT REVIEW OF MEDIA PORTFOLIO

Transactions Completed

Time UK Brands

Held For Sale

Cash at Q1-19 results on Nov. 8, 2018:

$400 Million

Pending

Sale price:

$150 Million

16

EXECUTE ON $550 MILLION OF COST SYNERGIES

Public company

and duplicative

expenses

($300)

Real estate and

vendor contracts

($130)

Circulation,

fulfillment and other

($120)

• Administrative/Central overhead

• Elimination of duplicate operating functions

• Elimination of public company expenses

• New scale to enable expense savings on physical costs, including paper and printing

• Combine offices, particularly in NY, LA and Chicago

• Leverage capacity in Des Moines where possible

Category Example

• Circulation, consumer marketing to Des Moines

• Bundling to achieve promotion efficiencies

• Production management overhead, pre-media savings, and newsstand distribution

Total EBITDA

opportunity

$170

Annual Savings

$ in millions.

Source: Company management.

$110

$20

$60

$40

$30

$60$40

$20

$550 million

17

TODAY’S AGENDA





❖Q&A

18

LOCAL BRANDS IN LARGE AND GROWING MARKETS

#1 or 2MORNING or LATE

NEWS IN 10 MARKETS

17STATIONS IN

PORTFOLIO

13STATIONS

IN TOP 50

MARKETS

5

EAST & SOUTHEAST:ATLANTA: MKT 10, CBS + INDNASHVILLE: MKT 27, NBCHARTFORD: MKT 33, CBSGREENVILLE: MKT 38, FOXMOBILE: MKT 58, FOXSPRINGFIELD: MKT 108, CBS + ABC

WEST & SOUTHWEST:PHOENIX: MKT 12, CBS + INDPORTLAND: MKT 22, FOX + MyTVLAS VEGAS: MKT 39, FOX

MIDWEST:ST. LOUIS: MKT 21, CBSKANSAS CITY: MKT 32, CBS + MyTVSAGINAW: MKT 65, CBS

DUOPOLY

MARKETS

$113

$163 $158

$215

$189

FY14 FY15 FY16 FY17 FY18

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STRONG PERFORMANCE OVER TIME

2

$ in millions.

$403

$534 $548

$630

$693

FY14 FY15 FY16 FY17 FY18

Revenues

15% CAGR

Operating Profit

14% CAGR

20

LOCAL MEDIA GROUP GROWTH STRATEGIES

• Continue to evolve content creation and distribution

• Maximize political advertising

• Integrate and expand MNI Targeted Media

• Continue to grow retransmission revenue

• Increase collaboration with National Media Group

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POLITICAL ADVERTISING PERFORMANCE IS STRONG

$ in millions.

$35 $39

$44

$63

$95-$100

FY11 FY13 FY15 FY17 1HFY19

Presidential Election Year

Mid-term Election Year

Meredith Historical Political Ad Revenues

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MNI TARGETED MEDIA: GROWTH OPPORTUNITY

50+ YEARS

OF TARGETING 86 FULL-TIME

40 locations nationwide

1BDIGITAL AD

IMPRESSIONS

Serve over

across multiple platforms, through thousands of

premier publishing partners, with trusted media

relationships.

over a decade in digital.

SALES PROFESSIONALS

A MEDIA PLANNING AND BUYING COMPANY

WITH EXPERTISE IN TARGETED MARKETINGMNI CLIENTS

RETRANSMISSION & AFFILIATION RENEWAL SCHEDULE

❖ 95% of Meredith Subscriber Households will Renew in FY19 and FY20

MVPD Renewal Schedule

Affiliation Renewal Schedule

Nashville(NBC)

Las VegasPortland

GreenvilleMobile

Springfield(FOX)

Fiscal 2021

Fiscal 2019

5%

Fiscal 2020

60%

St. LouisHartford

Springfield(CBS)

Springfield(ABC)

AtlantaPhoenix

Kansas CitySaginaw

(CBS)

35%

Fiscal 2022

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24

NATIONAL AND LOCAL COLLABORATION INITIATIVES

❖Weekly video content sharing

❖Monthly video content sharing

❖Quarterly video by Joanna Gaines

❖Planned content sharing for special events

25

TODAY’S AGENDA





❖Q&A

26

FINANCIAL STRATEGY

1. Strong EBITDA, margin and cash flow growth

2. Strengthening financial profile, driven by de-levering

• Goal for leverage at 2x by Fiscal Year 2020

3. Commitment to ongoing dividend increases

27

EXPECTED STRONG GROWTH IN ADJUSTED EBITDA

$ in millions(1) Unchanged from the guidance originally communicated on August 10, 2018.Adjusted EBITDA is defined as earnings before discontinued operations, interest, taxes, depreciation, amortization and special items. See Slide 32 for a reconciliation of net earnings from continuing operations to adjusted EBITDA.

$720-$750

$421$362

Pre-AcquisitionFY-17

Guidance¹

FY-19GoalFY-20

$1 Billion

5-Month Time ImpactFY-18

$189 $114Earnings from cont. operations: $191-$211

Adjusted EBITDA:

28

HISTORICAL AND FORWARD-LOOKING USE OF CASH

FY 2017 FY 2018 FY 2019¹ FY 2020¹

Interest $ 22 $ 66 $ 180 $ 150

Income taxes 73 24 50 120

Capital expenditures 35 53 70 60

Cost to achieve synergies -- 70 100 100

Other uses 48 5 65 65

Preferred dividends -- 23 55 55

Expected Uses of Cash $ 178 $ 241 $ 520 $ 550

$ in millions(1) Fiscal 2019 and Fiscal 2020 represent management expectations

29

COMMITMENT TO AGGRESSIVE DEBT PAYDOWN

FY18 FY19 FY20

$3,200

$2,200$1,900

DEBT

Repayments through Dec. 4 2018

Debt-to-EBITDA:

$400

3.5x 2.2x 1.9x

$ in millionsAdjusted EBITDA as defined in Meredith’s debt agreements as earnings before discontinued operations, interest, taxes, depreciation, amortization, non-operating expense and special items

30

COMMITMENT TO STRONG CAPITAL STEWARDSHIP AND DELIVERING TOP THIRD SHAREHOLDER RETURN

❖ Debt repayment and de-levering in the near-term, fueled by:

—Strong EBITDA growth

—Proceeds from asset sales

—Leverage target below 2x by FY2020

❖Continued commitment to returning cash to shareholders via dividends

❖Accretive acquisitions at attractive valuations with strong synergies

❖ Selective share repurchases

Priority

UBS 46th Annual Global Media and Communications Conference

32

Appendix: ADJUSTED EBITDA RECONCILIATION

FY 2017 FY 2018FY 2019¹

Low High

Earnings from continuing operations $ 188.9 $ 114.0 $ 191.5 $ 211.5

Interest expense 18.8 96.9 168.0 168.0

Net income tax 101.4 (123.6) 87.0 97.0

Depreciation & amortization 53.8 129.0 260.0 260.0

Net special items (0.7) 193.0 13.5 13.5

Other non-operating expenses 11.7

Adjusted EBITDA $ 362.2 $ 421.0 $ 720.0 $ 750.0

$ in millions(1) Fiscal 2019 represents management’s expectations

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