UBS 46th Annual Global Media and Communications Conference
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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.
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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
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Meredith is positioned on a growth path not previously achievable
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MEREDITH’S NEAR-TERM FINANCIAL GOALS
$1 Billion
Debt Reduction
$1 Billion
EBITDA Generation
in Fiscal 2019 in Fiscal 2020
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TODAY’S AGENDA
❖Meredith Overview
❖National Media Group Growth Strategies
❖Local Media Group Growth Strategies
❖Financial Strategy
❖Q&A
THE #1 OWNER OF PREMIUM NATIONAL MEDIA BRANDS
ENTERTAINMENT& FASHION
FOOD PARENTING HOME LUXURY & TRAVEL
HEALTH & WELLNESS
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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
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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
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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
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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
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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
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TODAY’S AGENDA
❖Meredith Overview
❖National Media Group Growth Strategies
❖Local Media Group Growth Strategies
❖Financial Strategy
❖Q&A
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LOCAL BRANDS IN LARGE AND GROWING MARKETS
#1 or 2MORNING or LATE
NEWS IN 10 MARKETS
17STATIONS IN
PORTFOLIO
13STATIONS
IN TOP 50
MARKETS
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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
$189
FY14 FY15 FY16 FY17 FY18
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STRONG PERFORMANCE OVER TIME
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$ in millions.
$403
$534 $548
$630
$693
FY14 FY15 FY16 FY17 FY18
Revenues
15% CAGR
Operating Profit
14% CAGR
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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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NATIONAL AND LOCAL COLLABORATION INITIATIVES
❖Weekly video content sharing
❖Monthly video content sharing
❖Quarterly video by Joanna Gaines
❖Planned content sharing for special events
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TODAY’S AGENDA
❖Meredith Overview
❖National Media Group Growth Strategies
❖Local Media Group Growth Strategies
❖Financial Strategy
❖Q&A
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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
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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:
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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
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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
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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
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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