Transcription
Meredith Digital and Allrecipes March 12, 2015
Safe HarborThis presentation and management’s public commentary contain certain forward-looking statements that aresubject to risks and uncertainties. These statements are based on management’s current knowledge andestimates of factors affecting the Company and its operations. Statements in this presentation that areforward-looking include, but are not limited to, the statements regarding advertising revenues and investmentspending, along with the Company’s revenue and earnings per share outlook.Actual results may differ materially from those currently anticipated. Factors that could adversely affect futureresults include, but are not limited to, downturns in national and/or local economies; a softening of thedomestic advertising market; world, national, or local events that could disrupt broadcast television; increasedconsolidation among major advertisers or other events depressing the level of advertising spending; theunexpected 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 regulationsaffecting the Company’s industries; increases in interest rates; and the consequences of any acquisitionsand/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
Today’s Agenda Meredith Vision National Media Group Digital Strategies Allrecipes.Next Total Shareholder Return3
Meredith at a GlanceNational MediaRevenue: 1BEBITDA: 150MLocal MediaRevenue: 550MEBITDA: 200MWORKINGWSM V -TV WSMV-DT NASHVILLEYOUFigures represent consensus estimates for Fiscal 20154
National Media Group FootprintThe largest female audience across every life stage and platformYOUNG WOMENNEW NESTERSYOUNG FAMILIESESTABLISHED FAMILIESWOMEN OF WORTH5
Our Brands Speak to Her About What Matters MostSeasons and styles change but women’s priorities remain the sameHER HOMEHER FAMILYHERSELF6
Recent Strategic AccomplishmentsNational Media Rapid growth in digital, mobile, video and social platforms Acquired Selectable Media digital ad technology platform Added Shape and Martha Stewart properties to portfolio Established presence in the wedding marketplace Strong performance from brand licensing and marketingservices activities7
Local Media Group FootprintPortland(FOX MYTV)Springfield(ABC CBS FOX)Saginaw(CBS)Hartford (CBS)Las Vegas(FOX)Phoenix(CBS Independent)Kansas City(CBS MYTV)St. Louis(CBS)Nashville(NBC) Greenville(FOX)Atlanta(CBS WPCH)Mobile-Pensacola(FOX)8
Recent Strategic AccomplishmentsLocal Media Added strong stations to group; created 2 duopolies Record revenue and EBITDA performance Stronger-than-expected political advertising revenue Increased retransmission revenue and contribution Expanded digital and mobile businesses9
Recent Strategic AccomplishmentsCorporate Grew dividend for 22st straight year; Yielding 3-4 percent Authorized 100 million for share repurchases Invested more than 500 million in acquisitions Fixed more than half of debt at low rate Successful execution of Total Shareholder Return Strategy10
Vision for Meredith Leadership in the creation and distribution of relevant, original, multi-platform content Expanded food, parenting, home and health franchisesNationalMediaGroup Digital business of scale with 100 million monthly unique visitors Enhanced profit contribution from our circulation and advertising pricing activities Meaningful expansion of our brand licensing business Top marketing services provider with leading expertise in content marketing Expanded portfolio of profitable local television stationsLocalMediaGroup #1 or #2 rated stations in markets that exceed nationwide growth statistics Maintained level of net retransmission contribution Scaled mobile and online platforms1111
Two Decades of Meredith Digital80604020Unique Visitors per Month(millions)1000201020082005201419952012Launch ofAgriculture.com Parents.comAcquiredAcquired Shape andMeredithand BHG.comlaunched Women’s Digital Tablets, Mobile Allrecipes.comMartha Stewartlaunchedmedia brands,Network created Sites & Apps and ShopNationand MeredithMywedding.com andVideo NetworkSelectable Media12
Continued Audience Growth and EngagementDigital is adding to our total audience, and is not cannibalizing printAudience (in millions)200Mobile15% of audience175150Online25% of audience125100Print7560% of audience50200920102011201220132014Source: MRI and ComScore13
Digital Advertising Revenue Growing as Percent of H-1514
Today’s Agenda Meredith Overview National Media Group Digital Strategies Develop best-in-class branded content and products Increase audience engagement across platforms Leverage data to improve ROI and consumer experience Strengthen advertising pricing and revenue mix Grow consumer revenue through pricing and bundling Allrecipes.Next Total Shareholder Return15
Digital Growth Strategies Develop best-in-class branded content and products Increase audience engagement across platforms Leverage data to improve ROI and consumer experience Strengthen advertising pricing and revenue mix Grow consumer revenue through pricing and bundling16
The Meredith Women’s Network17
Meredith: Top 30 Digital 875.Amazon17520.Pandora846.Microsoft16821.Weather Company837.Mode Media13822.About818.CBS pple13325.Buzzfeed7611.Turner Digital11526.Conde Nast7512.eBay11427. 0629.Answers.com7015.Time9330.WebMD69Source: comScore monthly unique visitors Oct.-Dec. 2014Represents Meredith’s owned and operated properties, and does not reflect Meredith’s extended media network.18
Highly Engaged Audiences Across PlatformsHIGHCROSSPLATFORMREACH &ENGAGEMENT19
Our Brands Resonate Across GenerationsMeredith Reaches 60 Percent of Millennial WomenMILLENNIALS1979-199560%GEN X1965-197867%BABY BOOMERS1946-196473%20
First Party Data, Insights and Analytics are our Differentiators We focus on women at scale:― 100 million consumers― 70 million unique visitors 1st party data is based on directbehavioral engagement We operate across platforms Data is our DNA― Team of 45 data analysts― Identify trends and consumer intent― Used to find, inform and reachconsumers throughout purchase path21
First Party Data, Insights and Analytics are our DifferentiatorsMediaPurchase PathDataPrint, display, video,mobile, email, direct mailSubscribers, visitors, emailand brand engagement,search/social behaviorsVideo, display, email,shopper marketingSite engagement, siteregistrations, recipe box &shopping lists, geo/storeMobile/app, email, shoppermarketing, telephoneSearch, coupon download,recipe viewed in-store, GPSBlogs, Facebook, Twitter, emailSocial/sharing behaviors,email, engagement actionsWOWLOVESource:2222
We Also Use This Data to Improve Advertising ROI1st-Party Data-driven segmentation converts Run Of Network andRemnant inventory into premium-priced, audience-targeted inventory1st party data and audiencetargeting also informs (andbackstops guaranteed)premium-performanceinventory salesPREMIUMPERFORMANCEPremium paid foreffectiveness and efficiencydriven by 1st-Party Data towhich advertiser does nothave accessPREMIUM CONTEXTUAL &AUDIENCE TARGETEDRUN OF NETWORKEnterpREMNANTVIDEOLAPTOP / DESKTOPMOBILE2323
Our Recent Portfolio Additions Support Our ionPremiumBrandedContent agedAudienceFirst-PartyData (Insights& Analytics)Ad TechPlatforms2424
Consumer Revenue Growth Strategies1. Source mix2. Auto renewal3. Bundling4. Pricing5. Digital25
Strengthening Our Source Mix for SubscriptionsOnline Orders for Print Magazine Subscriptions7.25.33.21.40.8FY10FY11FY12FY13FY14#s in millions26
Offering Bundled Packages of Brands for ConsumersMulti-magazinebundles feature: “Pick 3” for a set price Mobilization of page Targeted upsells2727
Allrecipes.Next Meredith Vision National Media Group Digital Strategies Allrecipes.Next Total Shareholder Return28
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AllRecipes video here
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Today’s Agenda Meredith Vision National Media Group Digital Strategies Allrecipes.Next Total Shareholder Return37
Three Year Returns Exceed Broader MarketTSR (%)150100125%70%500S&P 500 ActualMDP ActualMultiple sources including BCG Investor Survey and Value Line* Actual represents the period of Oct. 25, 2011 to Oct. 24, 201438
History of Increasing Dividends 1.8313% CAGR 4% yield 1.53 0.90 0.64 0.382003200620092012Annual Dividends Paid201539
Active Share Repurchase Program 760 600 550 200 30FY02FY05FY08FY11Cumulative Share RepurchasesFY1440
Use of Cash: Fiscal 2004 to Fiscal 2014 2,230 2,230 260 280stock issuanceCap-ex58% 850Acquisitions 200 1,970 1,900Operating cashflows 450Dividends 650Share repurchasesCash GenerationReinvested inoperations42%Returned toshareholdersCash Utilization in millions41 national media brands local media brands marketing solutions41
Calendar 2015 PrioritiesLocalMediaNationalMediaCorporate Grow non-political advertising revenue Increase retransmission revenue and contribution Enhance digital and mobile platforms Complete integration of station acquisitions Evolve and strengthen our advertising activities Aggressively expand our digital-related businesses Integrate new business additions Grow revenue from individual consumer Continue to consolidate our respective industries Increase cash returned to shareholders Execute Total Shareholder Return strategy42
5 Reasons to Invest in Meredith1Largest reach to American women across life stages2Powerful national and local media brands3Growing digital and mobile activities4Aggressively adding new revenue streams5Track record of returning cash to shareholders43
Meredith Digital and Allrecipes March 12, 2015
9. Comcast 135 10. Apple 133 11. Turner Digital 115 12. eBay 114 13. Gannett 106 14. Wikimedia 106 15. Time 93 Population 16. LinkedIn 90 17. Wal-Mart 89 18. ESPN 89 19. Twitter 87 20. Pandora 84 21. Weather Company 83 22. About 81 23. Hearst 80 24. Yelp 76 25. Buzzfeed 76 26. Conde Nast 75 27. Meredith 71 28. Pinterest 70 29. Answers.com 70 30 .
