Copyright © 2017 The Nielsen Company. Confidential and proprietary.
1Q 2017
NIELSEN INVESTOR OVERVIEW
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The following discussion contains forward-looking statements, including those aboutNielsen’s outlook and prospects, in the meaning of the Private Securities LitigationReform Act of 1995. Forward-looking statements are those which are not historicalfacts. These and other statements that relate to future results and events are basedon Nielsen’s current expectations as of April 25, 2017.
Our actual results in future periods may differ materially from those currently expectedbecause of a number of risks and uncertainties. The risks and uncertainties that webelieve are material are outlined in our disclosure filings and materials, which you canfind on http://nielsen.com/investors. Please consult these documents for a morecomplete understanding of these risks and uncertainties. We disclaim any intention orobligation to update or revise any forward-looking statements, whether as a result ofnew information, future events or otherwise, except as may be required by law.
Our outlook is provided for the purpose of providing information about currentexpectations for 2017. This information may not be appropriate for other purposes
FORWARD LOOKING STATEMENTS
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NIELSEN AT A GLANCE
Measurement and
analytics for content,
advertising and activity
for television, digital,
social and audio
Market share
measurement and
analytics for fast moving
consumer goods
FOCUS: DRIVE SHAREHOLDER VALUE THROUGH GROWTH, PROFITABILITY, AND FREE CASH FLOW
Watch Buy
Market Cap and Dividend Yield are reported as of 4/25/17
Adjusted EBITDA presented on a constant currency basis
Market Cap $14.8B
Cash Returned to Shareholders (2014-2016) $2.7B
2016 Total Company Revenue $6.3B
2016 Free Cash Flow $941M
2016 Adj. EBITDA Margin Growth 31bps
Dividend Yield 2.98%
Revenue Recurring in Nature ~70%
2016 Total Revenues
Watch
47%Buy
53%
2016 Revenue:
~$3.0B
Adj. EBITDA Margin:
45%
2016 Revenue:
~$3.3B
Adj. EBITDA Margin:
19%
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NIELSEN’S BUSINESS STRATEGY & OBJECTIVES
BUY
WATCH
Expand coverage of consumer purchase
behavior globally
Capture Total Audience across all screens and
platforms
MARKETING EFFECTIVENESS
Help clients understand how individuals’ viewing
behavior impacts purchase behavior
OUR VALUES
OPEN
CONNECTED
USEFUL
OUR BRAND
QUALITY
INTEGRITY
NEUTRALITY
EXECUTION OF OUR STRATEGY DRIVES SHAREHOLDER VALUE THROUGH THE CYCLES
PERSONAL
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OUR STRATEGIC FRAMEWORK
CONSUMER FOCUS
PERFORMANCE MANAGEMENT
GLOBAL PRESENCE
BROADCASTTV
CABLE SATELLITE TV
TIME SHIFTING
DIGITAL
WATCHMOBILE
BUY
GROCERY MASS RETAIL
DRUG STORE
CLUB OUTLETS
SPECIALTY STORE
E-COMMERCE
TOTAL
AUDIENCE
TOTAL
CONSUMER
POWERFUL BUSINESS MODEL DRIVES CONSISTENT PERFORMANCE
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COMPELLING FINANCIAL PERFORMANCE
STRONG FREE CASH FLOW
BALANCED CAPITAL ALLOCATION
CONSISTENT REVENUE GROWTH
MARGIN EXPANSION
WELL-POSITIONED TO DELIVER STRONG SHAREHOLDER RETURNS
• 6% CAGR from ’11 to ’16• 42 quarters of consecutive growth• Investing in key growth opportunities
• Syndicated business model & cost-out initiatives• ~3.4 pts of margin expansion ’11 to ’16• Adj. EBITDA +9% CAGR from ‘11 to ‘16
• Generated $3.8B of Free Cash Flow from ‘11 to ’16• 20% CAGR from ’11 to ’16• 23 pts FCF conversion improvement ‘11 to ‘16
• Tremendous flexibility to invest in growth• $2.7B back to shareholders from 2014-2016
RESULTS
• * ’11 to ’16 CAGR ~4.4% ex Harris and Audio• Note: FCF conversion: calculated as a percentage of Adj. EBITDA
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WHY INVEST IN NIELSEN?
Unmatched global footprint of 100+ countries
“Mission critical” measurement and analytics embedded in client workflows
Syndicated, scalable products and services
Strategic investments to drive continued and future growth opportunities
Proven track record of growth and economic resilience
Strong free cash flow generation and compelling capital allocation strategy
WE ARE A GLOBAL, INDEPENDENT MEASUREMENT AND DATA COMPANY FOR FAST
MOVING CONSUMER GOODS AND MEDIA
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OUR GROWING GLOBAL FOOTPRINT
2014 REVENUE DISTRIBUTION
…Underscored By A Global Employee Base Of ~43,000 Talented Associates We Work Hard
To Attract, Develop And Retain
Our focus is relentless on our pursuit to provide clients with the most complete
understanding of what consumers buy and watch in 100+ countries…
Buy Coverage Only Watch & Buy Coverage
~20% of revenues in
emerging markets
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LONG-TERM, BEST-IN-CLASS CLIENT BASEBUY WATCH
• 20,000+ clients
• Relationships with top 10
clients for over 30 years
• Long-term contracts provide
stable, recurring revenues –
average length of 3-7 years
• No client represents more than
4% of 2016 revenues
HIGHLIGHTS
PARTNERSHIPS
For more than 90 years, we have been at the forefront of measuring consumers around the
world, helping clients drive better business decisions and profitable growth over time
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Delivering solid revenue growth driven by Total Audience and Gracenote
Flexibility of Total Audience system• Independent, comparable, and de-duplicated measurement across all platforms
• Flexibility supports wide variety of client business models in 2017 Upfronts
Addition of new capabilities to Total Audience• Launched out-of-home measurement for national TV, ESPN a lead client
• Digital in TV Ratings: crediting linear advertising on digital screens
• Gracenote ID: adopted as standard content identifier for Total Audience
Continued penetration and adoption of Total Audience
• Digital Ad Ratings: 50% increase in campaigns measured
• Crediting viewing from DirecTV Now, Sling TV, Playstation Vue and YouTubeTV
• Total Content Ratings: growing client adoption
• Subscription Video On-Demand: >25K episodes
• Local: integrating set-top-box data and Portable People Meter panels; strong renewals
• Audio: increasing panel sizes, testing wearables, analyzing data from 100M cars
Marketing Effectiveness: Where Watch meets Buy• Nielsen Marketing Cloud: expanded agreements with Johnson & Johnson, Kimberly-Clark
• Named a Google preferred partner for Marketing Mix Modeling
WATCH: CONTINUED GROWTH AND ADOPTION (1Q 2017 UPDATE)
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BUY: TWO SPEED WORLD (1Q 2017 UPDATE)
• U.S. remains challenging…clients reducing spend
• Low single digit growth outside U.S.
• Ongoing investments in measurement coverage and granularity paying off
• Global footprint a key competitive advantage
• Broad-based growth across our balanced portfolio of global and local clients
Developed Markets: Challenging growth environment
Emerging Markets: Compelling story
Connected System: The future of Buy
Building out coverage: Following the consumer
Driving productivity and efficiency in our operations
Actions:
1
2
3
• Launched e-commerce solution in the U.S.
• Expanding coverage in specialty, convenience, health/wellness, fresh
• Linking measurement data with analytics
• Addressing client needs of speed and efficiency
• Connected Partner Program growing
• 49 clients using at least one component of the System
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THE FUTURE OF NIELSEN
MEASUREMENT: 94TH YEAR, INDEPENDENCE, COVERAGE, GRANULARITY
INTEGRATING MULTIPLE DATA SOURCES
OPEN, COLLABORATIVE MODELS
CONNECTING MEASUREMENT WITH ANALYTICS, DRIVING ACTIVATION
TRANSITIONING TO DaaS / SaaS MODEL
MORE TECHNOLOGY CENTRIC, GROWING ROLE OF AUTOMATION
SPEED, EFFICIENCY, VALUE FOR OUR CLIENTS
VALUE FOR OUR SHAREHOLDERS
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WHAT CONSUMERS BUYBroad, unparalleled reach of consumers worldwide
83Kscan sales input files
received daily
30Kstores
enumerated daily
13Knew items
“coded” daily
6.1Blines audited
annually
55Kstore visits
daily
Source: Nielsen
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BUY: MEASURING THE TOTAL CONSUMER
Total 2016 Revenue: ~$3.3B… Approximately 60% recurring in nature
Retail sales measurement, market share information and advanced analytical capabilities
• Presence in 100+ countries
• Measure billions of monthly point-of-sale transactions
• Store level data from nearly 2 million stores, supplemented from proprietary household level data from 240K households
• Demand for Everyday Analytics: Pricing, Promotion and Assortment
GROWTH THROUGH DIFFERENTIATION, STICKINESS & SCALE
Developed
Corporate
Emerging
63%
32%
5%
2016 Total Buy Revenue
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2006 2016
BUY GROWTH INITIATIVE #1: EMERGING MARKETS
1970 2012 2030
WORLD POPULATION
MIDDLE CLASS
$0.6B
~$1.1B
~36%
LOCALS
~64%
GLOBAL
MNCs
Biggest increase ever Acceleration with locals
3.7B
7.0B
8.3B
GROWTH OF MIDDLE CLASS EMERGING MARKETS REVENUE
Source: OECD
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BUY GROWTH INITIATIVE #2: CONNECTED SYSTEM
PERFECTLY ALIGNED WITH CLIENT NEEDS
business driversWhy?
data visualizationWhat’s Happening?
data exchangeAPI
data
NIELSEN
CONNECTED
PARTNER DATA
TOTAL
CONSUMER
TOTAL
AUDIENCE
CLIENT
DATA
PUBLIC
DATA
ECOSYSTEM
WhatNext?
appsinnovation • marketing • sales
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CONNECTED SYSTEM: ONGOING, AGILE
DEVELOPMENT AND ROLLOUT
Build the foundations with
charter clients
Expand to 20-30 clients
Agile rollout
2016 2017 2018
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CONNECTED SYSTEM: FINANCIAL OUTCOMES
Revenue
+ Data & software revenue less people intensive
+ Connected Partner revenue less cost intensive
+ Cost efficient technology architecture
+ Stronger value proposition for large, mid & small clients
+ Analytics less lumpy…connected to core measurement
+ Connected Partners…new revenue source
+ Data & software revenue
Margins
EXPECTED TO LEAD TO A STRONGER, MORE PROFITABLE BUY BUSINESS
People-as-a-Service revenue
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BUY GROWTH INITIATIVE #3: E-COMMERCE
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WHAT CONSUMERS WATCHMeasuring Total Audience across screens
293M Watching Live+DVR/
Time-Shifted TV
266MListening to
AM/FM Radio
117MWatching Video
on PC
207MUsing App/Web on
a Smartphone
168MWatching Video on
a Smartphone
Number of users engaging with these forms of media based on Nielsen’s Q4 2016 Total Audience Report
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WATCH: MEASURING THE TOTAL AUDIENCETotal 2016 Revenue: ~$3.0B… Over 80% recurring in nature
• Watch measurement capabilities in 47 countries
• Digital measurement, audience analytics and consumer
research
• Grossed and de-duplicated total reporting across all
devices, access points and business models
• Separate measurement for content ads
• Strategic relationships (Adobe, Experian, Facebook,
Twitter, Roku, DISH, Charter)
• Gold standard, MRC accredited panel
66%17%
10%
7%
Audience Measurement(Video & Text)
Audio
Marketing Effectiveness
Corporate/Other Watch
2016 Total Watch Revenue Breakdown
Video Ratings Audio Ratings Text Ratings
Cross Platform Measurement
websites
printed press
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TOTAL AUDIENCE MEASUREMENTGrossed and de-duplicated total reporting across al devices, access points and business models
Programs
& Ads
Content
Ads
TV CONNECTED DEVICE PC TABLET SMARTPHONE
Dyn
am
ic
Lin
ea
r
C3/C
7/A
QH
MEASURING CONSUMER MEDIA EXPOSURE ACROSS PLATFORMS
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TOTAL AUDIENCE FRAMEWORKFlexible Measurement Solutions for Content Ads
Consistent and
comparable metrics
for content and
ads provides
transparency for the
media ecosystem
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MOVING THE MARKET TO TOTAL AUDIENCE CURRENCY
Execute
• Build of scalable
architecture and
software complete
2015
Transact
• DCR syndication
complete
• Accreditation of Digital in
TV Ratings
• TCR: limited commercial
release
2017
Evaluate
• ~50 networks VOD
• +25 networks Digital
• Secondary crediting
capability
• 5 MVPDs + networks
digital C3/7 – now
transacting
Adopt
• Parallel industry
reporting, framework
in place
2016
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BUILDING FOR AN ADDRESSABLE FUTURE
TARGETED ADVERTISING
(AUDIENCE BUYS)REACH ADVERTISING
(LINEAR BUYS)
AD AD AD AD AD
COMPARABLE CROSS-PLATFORM REACH MEASUREMENT (AGE/GENDER)
AUDIENCE SCORES (DEMO+)
ROI SCORES
Pet Lover Beer Drinker Avid Hiker Car Buyer
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NIELSEN MARKETING CLOUD: INFORMING CMO DECISION-MAKINGPlanning, activation and analysis via Nielsen Marketing Cloud
PERSONS LEVEL BIG DATA BACKBONE
ACTIVATEPREDICT AND PLAN ANALYZE
LIFESTYLE
TOTAL AUDIENCE
1ST PARTY PARTNERSHIP
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TOTAL AUDIENCE: DELIVERING ON THE NEEDS OF
THE INDUSTRY – TODAY AND TOMORROW
TOTAL AUDIENCE IS HERE - DELIVERED
TOTAL AUDIENCE IS FOUNDATIONAL FOR AN ADDRESSABLE WORLD
TOTAL AUDIENCE IS A CRUCUAL PART OF EVOLVING CURRENCY
BUILDING OUT A BUY AND SELL SIDE DEPENDENCY FOR THE FUTURE
ONLY NIELSEN CAN
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FINANCIALS
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STRONG CONSISTENT FINANCIAL PERFORMANCE
$1.5 $1.5 $1.6
$1.8 $1.9 $1.9
2011 2012 2013 2014 2015 2016
27.2% 27.8% 28.4% 29.2% 30.1% 30.7%
Margins
ADJUSTED EBITDA ($B)
9%
CAGR
$376 $426
$573
$681
$808
$941
2011 2012 2013 2014 2015 2016
26% 28% 35% 37% 43% 49%
FCF Conversion
FREE CASH FLOW ($M)
20%
CAGR
Note: Figures are as reported, Adj. EBITDA CAGR represented in constant currency. FCF conversion: calculated as a percentage of Adj. EBITDA
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CONSISTENT REVENUE GROWTH($ billions)
Note: Figures are as reported, CAGR and revenue growth in constant currency. ’11 to ’16 CAGR ~4.4% ex Harris and Audio.
BUY
WATCH
6% CAGR
• Core measurement resilient
• New client wins
• Accelerating growth in emerging markets
• Total Audience Measurement
• Marketing Effectiveness growing double-digits
• Portfolio transformation
CONSISTENT & RESILIENT BUSINESS MODEL
2011 - 2016
Total CC % 5.6% 4.1% 6.4% 12.4% 5.0% 4.1%
Watch CC %
5.2% 4.8% 11.7% 21.3% 4.9% 6.3%
Buy CC % 5.8% 3.6% 3.1% 6.3% 5.0% 2.3%
3.3 3.3 3.4 3.5 3.3 3.3
2.0 2.1 2.32.8 2.8 3.0
2011 2012 2013 2014 2015 2016
$5.3 $5.4 $5.7$6.3 $6.2 $6.3
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2017 GUIDANCE(Revenue and adj. EBITDA margin growth in constant currency)
Total Revenue 5% - 6%
Total Revenue Core 6.5% - 7.5%
Total Revenue Core (ex Gracenote) 3% - 4%
Adj. EBITDA margin growth Flat
GAAP Net Income Per Share $1.40 - $1.46
Net Debt Leverage Ratio ~3.8x
Free Cash Flow ~$900M
Net book interest $365M - $375M
GAAP Tax Rate 38.0% - 38.5%
Restructuring $60M - $70M
Cash restructuring $100M - $110M
D&A $665M - $675M
Est. wtd. avg. diluted shares outstanding for FY 2017
~359M
OTHER FINANCIAL METRICS
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BALANCED CAPITAL ALLOCATION
Dividend~45%
MandatoryDebt~15%
Buyback / Tuck-in BD
~40%
LONG TERM FCF DEPLOYMENT 2014 – 2016 ACTIVITY
DELIVERING SHAREHOLDER VALUE
• Grow the business‒ Innovation…Total Audience & Connected System
‒ Inorganic…Tuck-ins
• Return cash to shareholders‒ Grow dividend in line with earnings
‒ Share buybacks
PRIORITIES
• Generated ~$2.4B of Free Cash Flow
• Returned $2.7B back to shareholders
• Increased dividend 94% since inception
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NIELSEN ACQUISITIONS & JOINT VENTURESCompany Capabilities
2013
Arbitron Radio audience measurement
Bowker E-books
MediaXIM Belgium and Netherlands advertising info services
G4 Trade promotion optimization; Leader in SaaS analytics solutions for CPG companies
2014
Nielsen Innovate Israel based incubator investing in startups that help Nielsen clients (10 countries)
Harris U.S. custom surveys
Nexium Retail shelf image identification technologies that replace manual inventory management systems
MMRD (JV) RMS in Myanmar
Czech TAM (JV) Television audience measurement
AffinovaIntuitive user interface platform and automated analytics capabilities; Nielsen’s Innovation
Practice
2015 eXelate Digital Marketing Platform (DMP) that helps facilitate the buying/selling of advertising
2016Pointlogic Global leader in marketing decision support systems that improve precision and allocation
Repucom Global leader in sports measurement, evaluation and intelligence
2017 Gracenote Industry’s largest provider of media and entertainment metadata
APPROXIMATELY $2.5B IN ACQUISITIONS AND JVS SINCE 2013, DRIVING GROWTH, VALUE & RETURNS
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FOREIGN CURRENCY IMPACT
CURRENCY PROFILE - REVENUEPROJECTED FX IMPACT(a):
REPORTED VS CONSTANT CURRENCY
60%
10%
3%3%3%
21%
USD EUR CAD GBP CNY Other
(a) Projected impact assumes rates in effect at 4/24/17 remain in effect for the balance of 2017.
(60)
(110)
(70)
60
(40)
30
(40)
0
60
10
1Q17 2Q17E 3Q17E 4Q17E FY17E
Rev (bps) EBITDA (bps)
Note: We report on a constant currency basis to reflect operating performance
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LONG TERM OUTLOOK
Note: All growth measures represented on constant currency basis.
THIS IS NIELSEN
DIVIDEND GROWTH
FREE CASH FLOW CONVERSION
MARGIN EXPANSION
REVENUE GROWTH
IN LINE WITH EARNINGS
GROWTH
45-50% ADJ. EBITDA
~50 BPS
MID-SINGLE DIGIT
GAAP EPS GROWTH DOUBLE DIGIT
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APPENDIX
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CERTAIN NON-GAAP MEASURES
Overview of Non-GAAP Presentations
We use the non-GAAP financial measures discussed below to evaluate our results of operations, financial condition, liquidity and indebtedness. 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 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 operating performance and liquidity. In addition, these non-
GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to
similar data the Company has determined that it is appropriate to make this data available to all investors. 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 Presentation
We 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 Ratio
The 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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(continued)
CERTAIN NON-GAAP MEASURES
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our consolidated statements of operations before interest income and expense, income taxes,
depreciation and amortization, restructuring charges, stock-based compensation expense and other non-operating items from our consolidated
statements of operations as well as certain other items that arise outside the ordinary course of our continuing operations. 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.
Free Cash Flow
We define free cash flow as net cash provided by operating activities, plus contributions to the Nielsen Foundation, less capital expenditures, net. 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, voluntary repayment of debt obligations or to fund
our strategic initiatives, including acquisitions, if any. However, free cash flow 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. Key limitations of the free cash flow measure
include the assumptions that we will be able to refinance our existing debt when it matures and meet other cash flow obligations from financing activities,
such as principal payments on debt. Free cash flow is not a presentation made in accordance with GAAP
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2017 GUIDANCE NON-GAAP RECONCILIATIONS($ in millions)
NET DEBT LEVERAGE RATIO
Gross Debt ~$ 8,420
Cash ~$ 680
Net Debt ~$ 7,740
Adjusted EBITDA $2,030 - $2,050
Net Debt Leverage Ratio ~3.8x
FREE CASH FLOW
Net cash provided by operating activities ~$1,360
Less: Capital expenditures, net ~(460)
Free cash flow ~$900
ADJUSTED EBITDA RECONCILIATION
2017 Guidance
Range
Net income $500 - $525
Interest expense, net $365 - $375
Provision for income taxes $310 – $330
Depreciation and amortization $665 – $675
Restructuring charges $60 – $70
Stock-based compensation and other $100 - $105
Adjusted EBITDA $2,030 - $2,050
(a) Other represents certain expenses that arise outside the ordinary course of our continuing operations. Such costs primarily include
legal settlements, acquisition related expenses, business optimization costs and other transaction costs.
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2017 GUIDANCE NON-GAAP RECONCILIATIONS($ in millions)
2017 Guidance
Low
% V Constant
Currency
2017
Guidance
High
% V Constant
Currency
2016 Constant
Currency
Total Revenue $6,597 5.0% $6,660 6.0% $6,283
Total Revenue Core $6,284 6.5% $6,343 7.5% $5,900
Total Revenue Core
(ex. Gracenote)$6,077 3.0% $6,136 4.0% $5,900
REVENUE RECONCILIATION
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ADJUSTED EBITDA RECONCILIATION($ in millions)
2016 2015 2014 2013 2012 2011
Net income 502 570 384 740 273 84
(Income)/ loss from discontinued operations, net of tax - - - (305) (30) (26)
Interest expense, net 329 307 297 307 386 443
Provision / (benefit) for income taxes 309 383 236 91 122 6
Depreciation and amortization 603 574 573 510 493 502
EBITDA 1,743 1,834 1,490 1,343 1,244 1,009
Equity in net (income)/ loss of affiliates - 3 4 (2) (5) (3)
Other non-operating loss/(income), net 3 (170) 168 30 134 222
Restructuring charges 105 51 89 119 85 83
Stock-based compensation expense 51 48 47 47 34 27
Other items (a)36 92 39 80 12 112
Adjusted EBITDA $ 1,938 $ 1,858 $ 1,837 $ 1,617 $ 1,504 $ 1,450
(a) For the twelve months ended December 31, 2016 and 2015, other items primarily consists of business optimization costs
For the twelve months ended December 31, 2011, other items primarily consists of sponsor termination fees and acquisition adjustments
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WEIGHTED AVERAGE SHARES OUTSTANDING($ in millions except per share amounts. Year ended December 31 for all years)
Weighted-average shares of common stock
outstanding as of December 31, basic358,830,080 366,996,788 379,333,037 375,797,629 361,787,868 352,469,181
Dilutive shares of common stock from stock
compensation plans3,337,049 3,961,016 5,038,415 5,130,337 4,523,116 5,032,773
Shares of common stock convertible
associated with the mandatory convertible
bonds
– – – 896,994 10,416,700 9,531,994
Weighted-average shares of common stock
outstanding as of December 31, diluted362,167,129 370,957,804 384,371,452 381,824,960 376,727,684 367,033,948
20112015 2013 201220142016
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FREE CASH FLOW RECONCILIATION($ in millions. Year ended December 31 for all years)
Net cash provided by operating activities $1,296 $1,209 $1,093 $901 $784 $641
Sponsor termination fee – – – – – 102
One-time Arbitron costs – – – 46 – –
Non-recurring contribution to the Nielsen Foundation 36 – – – – –
Capital expenditures, net (391) (401) (412) (374) (358) (367)
Free Cash Flow $941 $808 $681 $573 $426 $376
20112015 2013 201220142016
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NET DEBT AND NET DEBT LEVERAGE RATIO
RECONCILIATION($ in millions. Year ended December 31 for all years)
Gross debt $7,926 $7,338 $6,812 $6,640 $6,296 $6,475
Less: cash and cash equivalents 754 357 273 564 288 319
Net debt $7,172 $6,981 $6,539 $6,076 $6,008 $6,156
Adjusted EBITDA $1,938 $1,858 $1,837 $1,734 $1,602 $1,546
Net debt leverage ratio 3.7x 3.8x 3.6x 3.5x 3.8x 4.0x
20112015 2013 201220142016
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SELECTED FINANCIAL METRICS & BALANCE SHEET ITEMS($ in millions)
FINANCIAL METRICS
1Q 17
Free Cash Flow ($74)
Capital Expenditures, net $114
D&A(c) $155
Net Book Interest $89
Cash Taxes $52
Cash Restructuring $20
Wtd. avg. diluted shares 359.1
BALANCE SHEET – 3/31/17
Gross Debt $8,416
Cash $451
Net Debt $7,965
Net Debt Leverage Ratio (a) 4.07x
$136$277
$1,396
$814
$1,025
$2,322
$1,784
$-
$499
2017 2018 2019 2020 2021 2022 2023 2024 2025
CURRENT DEBT MATURITY PROFILE – 3/31/17 (b)
(a) Reflects net debt (gross debt less cash and cash equivalents), divided by Adjusted EBITDA calculated on last twelve months basis
(b) Excludes Capital Leases ($157M) and other debt ($6M)
(c) Includes $54 million of depreciation and amortization associated with tangible and intangible assets acquired in business combinations
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DEBT CAPITAL TABLE($ in millions)
DEBT CAPITAL TABLE
3/31/17 12/31/16 Change
Loan Debt (secured)$4,059 $4,059 $-
4.50% Sr. Notes (10/1/20)794 794 -
5.50% Sr. Notes (10/1/21)619 618 1
5.00% Sr. Notes (4/15/22)2,286 2,285 1
5.00% Sr. Notes (2/1/25)495 - 495
Capital lease/misc. debt163 170 (7)
Total Debt $8,416 $7,926 $490
Less Cash451 754 (303)
Net Debt $7,965 $7,172 $793
Adjusted EBITDA(a)$1,958 $1,938 20
Net Debt Leverage Ratio (b)4.07x 3.70x 0.37x
Weighted avg. interest rate (c) 4.20% 4.04% 16bps
(a) Adjusted EBITDA calculated based on last twelve months basis
(b) Reflects Net Debt (gross debt less cash and cash equivalents), divided by Adjusted EBITDA calculated on last twelve months basis
(c) Excludes capital leases
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WATCH RE-ORGANIZATION: IMPACT ON REVENUE($ in millions)
2016 2015 2014
• Note: Figures are as reported, revenue growth in constant currency
Prior Segments Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Marketing Effectiveness $ 67 $ 84 $ 87 $ 238 $ 52 $ 74 $ 68 $ 88 $ 282 $ 44 $ 62 $ 65 $ 68 $ 239
Audio 120 123 137 380 120 121 141 122 504 118 122 127 131 498
Audience Measurement 472 491 496 1,459 445 458 458 479 1,840 434 443 448 459 1,784
Other Watch 35 46 41 122 43 54 48 56 201 56 67 54 67 244
Total Watch $ 694 $ 744 $ 761 $ 2,199 $ 660 $ 707 $ 715 $ 745 $ 2,827 $ 652 $ 694 $ 694 $ 725 $ 2,765
Revised Segments Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Marketing Effectiveness $ 58 $ 71 $ 75 $ 204 $ 48 $ 64 $ 61 $ 78 $ 251 $ 40 $ 56 $ 58 $ 61 $ 215
Audio 120 123 137 380 120 121 141 122 504 118 122 127 131 498
Audience Measurement 472 491 496 1,459 445 458 458 479 1,840 434 443 448 459 1,784
Core Watch 650 685 708 2,043 613 643 660 679 2,595 592 621 633 651 2,497
Corporate / Other Watch 44 59 53 156 47 64 55 66 232 60 73 61 74 268
Total Watch $ 694 $ 744 $ 761 $ 2,199 $ 660 $ 707 $ 715 $ 745 $ 2,827 $ 652 $ 694 $ 694 $ 725 $ 2,765
Revised Y/Y Growth Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Marketing Effectiveness 20.8% 12.7% 25.0% 19.3% 26.3% 16.4% 8.9% 27.9% 19.5% 11.1% 5.7% 20.8% 19.6% 14.4%
Audio 0.8% 1.7% -2.8% -0.3% 1.7% -0.8% 11.0% -6.9% 1.2% F F F -3.7% F
Audience Measurement 7.5% 7.9% 8.5% 8.0% 5.5% 6.8% 5.8% 7.6% 6.4% 6.0% 6.5% 6.2% 6.5% 6.3%
Core Watch 7.3% 7.2% 7.6% 7.4% 6.1% 6.1% 7.1% 6.6% 6.5% 33.0% 32.1% 34.7% 4.8% 24.5%
Corporate / Other Watch -6.4% -7.8% -3.6% -6.0% -19.0% -8.6% -5.2% -7.0% -9.7% 1.7% 0.0% -7.6% -1.3% -1.8%
Total Watch 6.3% 5.8% 6.7% 6.3% 3.6% 4.7% 6.1% 5.2% 4.9% 29.4% 28.3% 29.2% 4.0% 21.3%
• Note: Figures are as reported, revenue growth in constant currency
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BUY RE-ORGANIZATION: IMPACT ON REVENUE($ in millions)
2016 2015 2014
• Note: Figures are as reported, revenue growth in constant currency
Prior Segments Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Emerging $ 243 $ 270 $ 267 $ 780 $ 249 $ 270 $ 253 $ 272 $ 1,044 $ 260 $ 286 $ 290 $ 297 $ 1,133
Developed 550 582 542 1,674 549 582 563 607 2,301 577 614 588 611 2,390
Total Buy $ 793 $ 852 $ 809 $ 2,454 $ 798 $ 852 $ 816 $ 879 $ 3,345 $ 837 $ 900 $ 878 $ 908 $ 3,523
Revised Segments Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Emerging $ 243 $ 270 $ 267 $ 780 $ 249 $ 270 $ 253 $ 272 $ 1,044 $ 260 $ 286 $ 290 $ 297 $ 1,133
Developed 515 527 509 1,551 506 535 516 553 2,110 539 565 543 553 2,200
Core Buy 758 797 776 2,331 755 805 769 825 3,154 799 851 833 850 3,333
Corporate 35 55 33 123 43 47 47 54 191 38 49 45 58 190
Total Buy $ 793 $ 852 $ 809 $ 2,454 $ 798 $ 852 $ 816 $ 879 $ 3,345 $ 837 $ 900 $ 878 $ 908 $ 3,523
Revised Y/Y Growth Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Emerging 10.0% 8.9% 8.5% 9.1% 10.2% 9.3% 6.3% 8.4% 8.5% 8.3% 9.2% 10.3% 10.0% 9.5%
Developed 3.8% -0.4% 0.0% 1.1% 2.2% 3.3% 2.8% 5.7% 3.5% 2.7% 3.7% -0.5% 0.9% 1.7%
Core Buy 5.7% 2.6% 2.8% 3.6% 4.7% 5.2% 3.9% 6.6% 5.1% 4.4% 5.5% 3.0% 3.9% 4.2%
Corporate -18.6% 14.6% -29.8% -10.9% 13.2% -2.1% 6.8% -3.6% 2.7% 52.0% 81.5% 60.7% 65.7% 65.2%
Total Buy 4.3% 3.3% 0.9% 2.8% 5.1% 4.8% 4.1% 5.9% 5.0% 5.9% 7.9% 4.9% 6.4% 6.3%
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NIELSEN INVESTOR RELATIONS
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