Jefferies 5 th Annual Internet & Media Conference Feb , 2009

Transcription

1 Jefferies 5 th Annual Internet & Media Conference Feb ,

2 Safe Harbor This presentation and management s public commentary 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 s operations. Statements in this presentation that are forward-looking include, but are not limited to, the statements regarding broadcast pacings, publishing advertising revenues, as well as any guidance related to the Company s financial performance. 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; the integration ti of acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing, or syndicated programming costs; changes in television network affiliation agreements; technological developments affecting products or the methods of distribution; changes in government regulations affecting the Company s industries; unexpected changes in interest rates; and the consequences of any acquisitions iti and/or dispositions. iti The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. 2

3 Meredith Corporation Broad Media and Marketing Footprint National Brands Local Brands Digital & Diversified Revenues: $1 billion Revenues: $300 million Revenues: $300 million 25 subscription titles 150 Newsstand titles 12 television stations 10% of U.S. households Integrated Marketing Consumer Web sites Broadband Video Brand Licensing 3

4 Meredith Digital Business-to-Business Business-to-Consumer Website design 40+ Web sites Online CRM strategy 20 million unique visitors Viral and word of mouth 185 million page views Branding and promotions 2.3 million video plays Meredith Integrated Marketing Meredith Interactive Media 4

5 Business-to-Business Digital Meredith Integrated Marketing Transforming from a vendor to strategic partner CUSTOM PUBLISHER Brand Messaging Awareness/intent to purchase Responsive/executional Ink-on-paper/magazine Turn-key/flat-fee solutions RELATIONSHIP MARKETER Brand Marketing Calls to action Proactive & Strategic Robust online & offline capabilities Fees based on blended rates VENDOR PARTNER 5

6 Meredith Integrated Marketing Execution of Digital Strategy April 2006 January 2007 January 2007 June

7 Meredith Integrated Marketing Kraft Food & Family Kraft Food & Family Our Contracted Assignment: Food and Family Magazines Food and Family s Expanded Assignments: Circulation consulting Database list rental Campaign management Brand insert development Custom video production Mobile iphone application

8 Meredith Integrated Marketing Kraft Food & Family GPS-based store locater Step-by-step directionsi Instructional videos Shopping list tool 8

9 Meredith Integrated Marketing Nestlé 9

10 Meredith Integrated Marketing Tropicana Our Contracted Assignment: Integrate brand with Web 2.0 Engage social media Create Twitterverse Results: Attracted 1.2 million uniques Generated hundreds of blogs Postings on Blogher, AdRants, TheAtlantic 10

11 Meredith Integrated Marketing Takeda Pharmaceutical 11

12 Meredith Integrated Marketing Strong Revenue Growth 25% CAGR $155 $60 $ Fiscal Year $ in millions 12

13 Meredith Integrated Marketing Growth Strategies Enhance print-based programs with interactive features Integrate and optimize recent acquisitions Expand capabilities to meet market needs Search engine optimization and marketing Mobile Database marketing 13

14 Meredith Digital Business-to-Business Business-to-Consumer Website design 40+ Web sites Online CRM strategy 20 million unique visitors Viral and word of mouth 185 million page views Branding and promotions 2.3 million video plays Meredith Integrated Marketing Meredith Interactive Media 14

15 Business-to-Consumer Digital Execution of Digital Strategy 2006 Aggressive expansion of Better Homes and Gardens Network 2007 Launch of Parents Network 2008 Development and investment in social networking sites 2009 Creation of Meredith Women s Network 15

16 Meredith Women s Network Strategy Consumer Search his new navigational paradigm; starting ti point tis Google Social media explodes Content Unified content development across multiple platforms including print, online, video, mobile Emphasis on social ilengagement and user generated content Marketers Networks offer greater scale and targeting Sponsors value programs that integrate with editorial Cross platform ideas increase impact 16

17 The Meredith Women s Network The First Network of Exclusively High Quality Branded Sites The Better Homes and Gardens Network Better Homes and Gardens Better Recipes Mixing Bowl The Parents Network Parents American Baby Family Circle The Real lgirls Network Nt Divine Caroline Fitness More Ladies Home Journal 17

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19 Competitive Landscape Millions of Unique Visitors ivillage 21 AOL Living 20 Scripps 17 Meredith Women's 12 Hearst Women's 11 CondeNet 7 Martha Stewart Source: ComScore, December

20 Growing Scale Average Unique Visitors per Month Better Homes and Gardens Network Parents Network N/A Real Girls Network N/A N/A 5.0 TOTAL In millions Source: Omniture 20

21 The Meredith Women s Network High Engagement at Great Scale Coverage Composition Passion Engagement Impact 21

22 The Better Btt Homes and Gardens Network Nt Everything for a Better Life Better Homes and Gardens Better Recipes Mixing i Bowl 22

23 BHG Network Competitive Position Millions of Unique Visitors Reader's DigestNetwork 15 Food Network.com 11 BHG Network 5 HGTV.com 3 Oprah.com 3 Martha Stewart.com 2 Real Simple.com 1 Good Housekeeping.com 1 Source: ComScore, December 2008 Fine Living.com 1 23

24 MixingBowl.com The Ultimate Social Cookbook 24

25 BetterRecipes.com Everything for Foodies 25

26 The Parents Network Keeping Moms Connected, Crib to College American Baby Parents Family Circle 26

27 Parents Network Competitive Position Millions of Unique Visitors BabyCenter Network CafeMom Parents Network FamilyFun About.com Kaboose Baby 1.5 ivillage 0.6 Parenting Pregnancy Cookie Source: ComScore, December

28 The Parents Network Everything a Mom Needs When and Where She Needs It Preconception/Prenatal thru First 12 months Toddler thru Elementary School Tweens & Teens 28

29 The Real lgirls Network Created by Women for Women Divine Caroline Fitness More Ladies Home Journal 29

30 DivineCaroline Life In Your Words 30

31 Meredith Interactive Media Strong Revenue Growth $ % CAGR $ $ Fiscal Year $ in millions 31

32 Meredith Interactive Media Growth Strategies Increase scale of Meredith Women s Network The Better Homes and Gardens Network The Parents Network The Real Girls Network Enhance and monetize video capabilities Grow online subscription orders 32

33 Financial Overview Strong Operating Cash Flow 12% CAGR $256 $163 $171 $194 $ $ in millions 33

34 Financial Overview Cash Flow Fiscal 1999 through 2008 Operating Cash Flow Net Debt Stock Option Exercises Available Cash $1, $2,200 Acquisitions, Net of Dispositions Share Repurchases Capital Expenditures Dividends Utilization of Cash $1, $2,200 $ in millions 34

35 Financial Overview Calendar Year Dividends Per Share Calendar Year Dividends Per Share $0.86 $ % CAGR $0.30 $0.32 $0.34 $0.36 $0.38 $0.48 $0.56 $0.64 $

36 Financial Overview Conservative Capital Structure $455 million total debt 4.4% cost of debt 1.7x debt to EBITDA As of Dec. 31,

37 Financial Overview REAFIRM GUIDANCE Current Valuation Metrics Current dividend yield: 7.1% EPS multiple: 4.8x EBITDA multiple to market capitalization: 2.7x EBITDA multiple to total capitalization: 4.4x As of Feb. 23, 2009, using trailing 4 quarters actual results, excluding special items 37

38 Summary Meredith possesses: Vibrant and profitable media assets and brands Leading business-to-business marketing capabilities Growing business-to-consumer digital assets Strong financial foundation 38

39 Jefferies 5 th Annual Internet & Media Conference Feb ,