General Investor Presentation August 2017
SAFE HARBOR This presentation and management’s commentary relating thereto may contain 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 Company’s estimates of future revenues, profits and earnings per share. 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; and the consequences of acquisitions and/or dispositions. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. 2
MEREDITH’S INVESTMENT THESIS 1. Strong and consistent cash flow generation, driven by: Portfolio of highly rated television stations in large and ❖ fast-growing markets Trusted national brands with an unrivaled female reach ❖ Profitable and growing digital business ❖ Growing consumer-generated revenue ❖ 2. Commitment to delivering Top-Third Total Shareholder Return: Balanced capital allocation strategy ❖ Dividend payer for 70 years; increases for 24 consecutive years ❖ Share buyback program ❖ Accretive strategic acquisitions ❖ 3. Experienced management team with a proven record of operational excellence and shareholder value creation over time 3
MEREDITH AT A GLANCE National Media Revenue: $1.1B Op. Profit: $147M EBITDA: $164M Local Media Revenue: $630M Op. Profit: $215M EBITDA: $250M WORKING YOU WSM V-TV WSM V-DT NASHVILL E Results for fiscal 2017 ended June 30 4
SUCCESSFUL EXECUTION OF STRATEGIC PLAN OVER TIME ❖ Acquired and integrated 5 strong stations, achieving 3 additional duopolies Local ❖ Grew news programming by 50% across portfolio Media ❖ Significantly grew retransmission revenues and contribution Group ❖ Expanded digital and mobile platforms ❖ Built fast-growing and profitable digital business with a scale audience ❖ Added leading digital ad technology companies Selectable, Qponix & ShopNation National Media ❖ Achieved inflection in advertising revenues with digital driving overall growth Group ❖ Added Allrecipes, Shape and Martha Stewart brands targeting younger women ❖ Grew brand licensing business at Walmart to 3,000+ SKUs at 5,000 stores ❖ Implemented and aggressively pursuing Total Shareholder Return program Corporate ❖ Grew dividend at 10% average annual rate to $2.08; currently yielding 4% ❖ 2.8% weighted-average interest rate and 1.9x debt-to-EBITDA leverage 5
STRONG ACHIEVEMENTS IN FISCAL 2017 TOWARD VISION ❖ Record Local Media advertising revenue, led by political dollars ❖ Retransmission contribution continues to grow ❖ Achieved network affiliation renewal in important markets ❖ Strong digital driving overall National Media advertising growth ❖ Renewed highly profitable licensing agreement with Walmart ❖ Rapid growth in consumer connection across media platforms ❖ Strong cash flow fueling 24 th -straight dividend increase Highest earnings per share in Company’s 115 -year history 6
TODAY’S AGENDA ❖ Meredith Overview ❖ National Media Group Growth Strategies ❖ Local Media Group Growth Strategies ❖ Total Shareholder Return Strategies ❖ Q&A 7
NATIONAL BRANDS POSSESSES STRONG CONSUMER REACH 80 31 % 110 70 % MILLION REACH TO MILLION FY-17 UNDUPLICATED MILLENNIAL UNIQUE DIGITAL WOMEN WOMEN VISITORS AD REVENUES
CROSS-CHANNEL GROWTH STRATEGY 1. 2. 3. 4. Audience & Proprietary First- Proprietary Best-In-Class Branded Engagement Party Data, Insights Technology Experiences Growth & Analytics Platforms Growth & Diversification in Growth & Diversification in Advertising Revenue Consumer Revenue 9
PILLAR 1: BRANDED EXPERIENCES Notification Email User Comments (To Come) Follow streams Saved recipe and brands 10 10
PILLAR 1: NEW BRAND LAUNCHES ❖ Launched in fall 2016 as a newsstand title ❖ Strongest-selling launch in recent history ❖ Transitioned to quarterly subscription title with one million ratebase (May 2017) ❖ On track to be most profitable title in first year of operation in Meredith history 11
PILLAR 2: CROSS-PLATFORM AUDIENCE GROWTH Digital is adding to Meredith’s total audience, and is not cannibalizing print 200 175 Total Audience (in millions) 150 125 100 75 50 2010 2011 2012 2013 2014 2015 2016 Digital Print 60% of audience 40% of audience 12
PILLAR 2: STRONG MILLENNIAL REACH 13
PILLAR 3: FIRST-PARTY DATA & ANALYTICS We understand her interest + intent Driven by ‘ Visit ’ data Understand Her - Visits/ Content - Emails Interests - Subscriptions 50% of Allrecipes visitors are in Driven by ‘ Action ’ data store w/in 24 hrs. Understand Her - ‘I Made it’ - Add to Shopping List Intent - Share Meredith Differentiates (in food) Driven by ‘ Real-time ’ data Understand - Mobile – in-store recipes When She’s - Shopper Marketing In-market - ShopNation Commerce 14
PILLAR 4: TECHNOLOGY PLATFORMS Recent platform-centric acquisitions • Social platform for food Native and engagement-based video • Existing / Home-Grown Technology + • Shopper marketing Platforms (Consumer Revenue, eCommerce and affiliate marketing • etc.) Lead generation / performance • marketing 15
PLATFORMS DRIVING PREMIUM MONETIZATION GROWTH & REVENUE DIVERSIFICATION Traditional Display vs. Premium Monetization 82% eCPM Ranges: < $10 52% 48% eCPM Ranges: 18% $10 – $30+ Traditional Display Premium Monetization PREMIUM MONETIZATION UNITS NATIVE VIDEO SPONSORSHIPS INFLUENCER SOCIAL SHOPPER MARKETING 16
RESULTS: TOTAL AD REVENUE GROWTH, FUELED BY DIGITAL CHANNELS 5-YEAR CAGR $ 600 Digital: 30% $520 $492 500 10% 30% 400 300 91% 70% 200 100 $ 0 2012 2017 Print Digital $ in millions 17 Fiscal years ended June 30
RESULTS: CONSUMER REVENUE DIVERSIFICATION Circulation & New Paid Products ❖ Magazine subscriptions: stable revenue source ❖ Auto-renewal has large upside (2x profit) ❖ Launch promising new products Brand licensing ❖ World’s No. 2 licensor behind Disney ❖ Renewed Walmart relationship ❖ Several new programs launched eCommerce ❖ Newer, fast-growing revenue source ❖ Turning inspiration to action 18
TODAY’S AGENDA ❖ Meredith Overview ❖ National Media Group Growth Strategies ❖ Local Media Group Growth Strategies ❖ Total Shareholder Return Strategies ❖ Q&A 19
LOCAL BRANDS IN LARGE AND GROWING MARKETS 17 13 #1 or 2 5 STATIONS IN STATIONS SIGN-ON to SIGN-OFF DUOPOLY PORTFOLIO IN TOP 50 RANK IN 6 MARKETS MARKETS MARKETS EAST & SOUTHEAST: ATLANTA, MKT 10 NASHVILLE, MKT 29 WEST & SOUTHWEST: MIDWEST: HARTFORD, MKT 30 GREENVILLE, MKT 37 PHOENIX, MKT 12 ST. LOUIS, MKT 21 MOBILE, MKT 60 PORTLAND, MKT 25 KANSAS CITY, MKT 33 LAS VEGAS, MKT 40 SAGINAW, MKT 72 SPRINGFIELD, MKT 114 20
LOCAL MEDIA GROUP GROWTH STRATEGIES ❖ Increase Viewership ❖ Grow Revenue and Profit ❖ Scale Digital Businesses ❖ Increase Net Retransmission Contribution ❖ Expand our Television Station Portfolio 21
ADDING LOCAL NEWS PROGRAMMING STRENGTHENS MARGINS 9% CAGR 700 400 300 CY06 CY11 CY16 22
GROWING REVENUES AND PROFIT 14% 15% CAGR CAGR $630 $215 $548 $534 $163 $158 $403 $376 $124 $113 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Revenues Operating Profit $ in millions 23
RECORD POLITICAL ADVERTISING REVENUES 10% CAGR Presidential Election Year Mid-term Election Year $63 $44 $39 $35 FY2011 FY2013 FY2015 FY2017 24 $ in millions
FISCAL 2019 POLITICAL ADVERTISING OUTLOOK Senate Races Jeff Flake (R-AZ) Dean Heller (R-NV) Bob Corker (R-TN) Chris Murphy (D-CT) Bill Nelson (D-FL) Elizabeth Warren (D-MA) Debbie Stabenow (D-MI) Claire McCaskill (D-MO) Maria Cantwell (D-WA) Governor Races Doug Ducey (R-AZ) Bruce Ranner (R-IL) Charlie Baker (R-MA) Dan Malloy (D-CT) Kate Brown (D-OR) Alabama (Open) Florida (Open) Georgia (Open) Kansas (Open) Michigan (Open) Nevada (Open) South Carolina (Open) Tennessee (Open) 25
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