 Analyst Presentation May 14, 2014 Exhibit 99.1 |
 2 Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995; particularly statements regarding future financial and operating results of Time Inc. (the “Company”) and its business. These statements are based on management’s current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements in this presentation due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the operation of the Company’s business. More detailed information about these factors may be found in the Company’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q filed on May 14, 2014 and its Registration Statement on Form 10 and related exhibits originally filed on November 22, 2013 and most recently amended on May 8, 2014. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP financial measures such as operating income before depreciation and amortization (“OIBDA”), Adjusted OIBDA and Free Cash Flow, as included in this Presentation, are supplemental measures that are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”). We define Adjusted OIBDA as OIBDA adjusted for asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions. We define Free Cash Flow as cash provided by operations less capital expenditures. We believe that the presentation of OIBDA, Adjusted OIBDA and Free Cash Flow helps investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provides useful information to both management and investors by excluding certain items that may not be indicative of the core operating results and operational strength of our business and helps investors evaluate our ability to service our debt. Please see the Appendix hereto for reconciliations of these Non-GAAP financial measures to their comparable GAAP financial measures. These non-GAAP financial measures have limitations as analytical and comparative tools and you should consider OIBDA, Adjusted OIBDA and Free Cash Flow in addition to, and not as a substitute for, operating income, cash provided by operations or any other measure of financial performance or liquidity reported in accordance with GAAP. Throughout the presentation, certain numbers will not sum to the total due to rounding. |
 3 Introduction Pages 4-7 Executive Summary Pages 8-20 Overview of Time Inc. Pages 21-42 Financial Overview Pages 43-51 Appendix Pages 52-55 Agenda |
 INTRODUCTION 4 |
 5 • Time Inc. is the largest magazine publisher in the U.S. based on both readership and print advertising revenues with over 90 magazine titles globally, including PEOPLE, Sports Illustrated, InStyle, TIME and Real Simple • On March 6, 2013 Time Warner announced plans for the complete legal and structural separation of Time Inc. from Time Warner in a tax-free spin-off, which is scheduled to be completed on June 6 th – The distribution ratio will be 1 Time Inc. share per 8 Time Warner Inc. shares, or approximately 110MM diluted shares outstanding – The Company will be listed on the New York Stock Exchange under the ticker ‘TIME’ • Time Inc. generated FY 2013 revenue of $3.4B, Adjusted OIBDA of $587MM 1 , and Free Cash Flow of $384MM 2 • The Company is targeting an initial dividend payout of approximately 30% of Free Cash Flow • In connection with the spin-off, Time Inc. has raised $1.4 billion of funded debt, in the form of a $700MM 1st lien Term Loan B (subject to closing conditions) and $700MM of Senior Unsecured Notes – Net proceeds from the financing will be used to purchase U.K. publishing operations from Time Warner and pay a special dividend to Time Warner – The Company also has access to an undrawn $500MM 1st lien Revolving Credit Facility (subject to closing conditions) Spin-Off Overview Adjusted OIBDA is OIBDA excluding asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions; See Appendix for Reconciliation of Operating Income to Adjusted OIBDA Free Cash Flow is defined as cash provided by operations less capital expenditures; See Appendix for Reconciliation of Net Income to Free Cash Flow. FY 2013 Free Cash Flow of $384MM does not give pro forma effect to the interest expense associated with the $1.4 billion of debt raised in 2014 1 2 |
 6 The spin-off will enable Time Inc. to benefit from the flexibility and focus of being a stand-alone public company Spin-Off Transaction Rationale Provides strategic clarity and flexibility Aligns incentives for management and employees Creates shareholder flexibility • Better able to execute on strategic plans and respond to industry dynamics • Increased flexibility to pursue growth opportunities and direct resources • Incentives tied to business performance and stockholder expectations • Increased ability to attract and retain personnel • Shareholders can make independent decisions about business ownership • Over time, Time Inc. will align with a natural shareholder base |
 7 Spin Timeline • Debt financing was completed in April 2014 (subject to closing conditions for Term Loan B and Revolver) • Spin-off targeted for completion on June 6 • Form 10 declared effective (5/9) • Announced Record Date, Distribution Date and Share Distribution Ratio • Distribution Date (6/6) • Ex-Dividend Date / Regular Way Trading (6/9) Transaction timeline Holiday May 2014 June 2014 S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 7 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 Week of May 5th May 19 Early June • When-Issued Trading begins (5/21) • Record Date (5/23) th th |
 EXECUTIVE SUMMARY 8 |
 9 Presenters Time Inc.’s New Senior Leadership Team Norman Pearlstine, EVP and Chief Content Officer Jeffrey J. Bairstow, EVP and Chief Financial Officer Joseph A. Ripp, Chief Executive Officer • Mr. Pearlstine became Chief Content Officer in November 2013 • Mr. Pearlstine is responsible for driving development of new content experiences, consumer products and lines of business across Time Inc. brands. He also oversees the company’s editorial policies and standards • Mr. Pearlstine served as Time Inc.’s Editor-in-Chief from 1995 through 2005 • From 2006 to 2008, Mr. Pearlstine served as a Senior Advisor to the Telecom and Media group at The Carlyle Group • Mr. Pearlstine returned to Time Inc. following a five-year stint at Bloomberg L.P., where as Chief Content Officer, he was responsible for developing growth opportunities for Bloomberg’s television, radio, magazine, and online products to make the most of the company’s news operations • Mr. Bairstow became CFO in September 2013 • Mr. Bairstow is responsible for leading Time Inc.’s financial functions and strategies. He also oversees Time Inc.’s Customer Service, and Production operations • Prior affiliations include President of Digital First Media, a leading newspaper chain, where he helped extend the reach of the company’s core media brands across all platforms • Mr. Ripp became CEO in September 2013 • As a former top Time Inc. and Time Warner executive, Mr. Ripp spent the past decade immersed in the intersection of digital, advertising and publishing • Prior affiliations include CEO of OneSource Information Services, Inc. and Cannondale Investments, Inc. • Mr. Ripp began his media career at Time Inc. in 1985, and held several executive level positions there and at Time Warner including Senior Vice President, CFO and Treasurer of Time Inc., Executive Vice President and CFO of Time Warner, CFO of America Online, and Vice Chairman of America Online |
 Time Inc. Overview 10 1 U.S. based on both readership and print advertising revenues 2 U.K. based on print newsstand revenues Industry-leading collection of media brands Largest magazine publisher in the U.S. and the U.K. ~100MM U.S. consumers in print per month 23 magazines published in the U.S. 70+ magazines published internationally (U.K., Mexico) 50+ licensed print and digital editions in 30+ countries ~70MM consumers online monthly 45+ websites globally Offers digital magazine, websites with mobile viewing and mobile applications for U.S. titles 2013 Revenue by Type ($MM) 2013A Revenue: $3,354MM Advertising $1,807 54% Circulation $1,129 34% Other $418 12% 1 2 |
 Oct 17, 2001 Acquisition of IPC Media (U.K.), a leading magazine publisher with 90+ titles 11 Time Inc. Timeline Oct 1, 2013 Acquisition of Affluent Media Group (formerly American Express Publishing) 1930 1930 1980 1980 1940 1940 1923 1930 1936 1954 1972 1974 1985 1987 1990 1994 2000 2004 1990 1990 2000 2000 2010 2010 Nov 28, 1922 Time Inc. incorporated 1950 1950 1960 1960 1970 1970 Jan 1990 Merger with Warner Communications 2011 Time Inc. launched tablet editions for all U.S. titles Mar 6, 2013 Time Warner announced plans to separate Time Inc. 2014 2014 2013 2013 1996 |
 12 Investment Highlights • Industry leading scale and brands • Passionate subscriber base that can be monetized across platforms and provides extensive consumer data • Strong Free Cash Flow profile • New management team with proven track record of business transformation • Clear path to creating long-term value – Drive efficiencies to protect cash flows and free up resources for reinvestment – Unleash entrepreneurship and create P&L accountability – Extend brands and better leverage scalability of content – Balanced approach to capital allocation |
 U.S. Consumer Magazine Publishing: $24.3B Annual Revenue 13 Advertising made up 67% of all magazine industry revenue in 2013 Total: $24.3B Magazine Publishing Revenue 2013 1 ($MM) 2013 Top Magazine Industry Ad Categories 2 Beauty, 17% Fashion/Retail /Jewelry, 15% Food & Bev, 11% DTC/OTC Drugs & Remedies, 11% DR, Misc & Local Svcs, 8% Home, 7% Media & Movies, 6% Tech & Telecom/CE, 6% Automotive, 5% Financial, 5% Travel, 4% Industry, Govt & Org, 3% Other, 4% Ad Revenue $16.3B 67% Circ Revenue $8.0B 33% 1 2 Source: PWC Global Entertainment and Media Outlook 2013-2017, Publishers Information Bureau as provided by Kantar Media (“PIB”) Note: Percentages may not add to 100% due to rounding “Other” ad category includes Sporting Goods, Toys & Hobbies, Alcoholic Beverage and Tobacco Reflects U.S. consumer magazine publishing revenue; |
 14 Source: MPA Factbook 2013/2014 91% of all adult Americans read magazines Print magazines rank #1 in commanding consumer attention and advertising acceptance Magazine ads outperform other media with regard to credibility and influence >25% of digital readers say they have increased time spent with magazines Magazines Have a Large, Highly Engaged Audience 59% of readers took action or plan to take action as a result of exposure to specific print ads |
 Top Magazine Publishers are Taking Share 15 The share for the top four publishers has increased from 64% in 2009 to 68% in 2013 PIB-Measured Publishers Share of Advertising Revenue +370bps 1 20.0% 16.4% 18.0% 13.9% 15.6% 13.2% 11.1% 36.5% 31.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2009 2013 All Other Meredith Condé Nast Hearst Time Inc. 23.7% Reflects Time Inc.’s 2013 acquisition of Affluent Media Group, which represents 170 bps of the increase Source: PIB 1 |
 16 Key Challenges and Transformational Progress Secular Headwinds • Advertising revenues migrating to digital • Newsstand declines • Digital monetization underperformance Protect the Core • Dissolved complex operating matrix • Launched program to attack processes and structural costs • Developing cross-brand digital strategy Key Challenges Cultural and Organizational Barriers • Leadership transitions • Decentralization and bureaucracy slowed decision-making and execution • Structural costs were not addressed • Creative misalignment with the business Position For a Changing Marketplace • Hired or promoted transformational figures 1 • Eliminated “Church and State” 2 barriers • Designed new incentive and compensation plans 1 EVP, Chief Content Officer Norm Pearlstine, EVP of Consumer Marketing Lynne Biggar, EVP of Advertising Sales Mark Ford, and Chief Technology Officer Colin Bodell and others 2 “Church and State” in magazine parlance speaks to the separation between a publication’s editorial and business interests, defining an arms-length relationship, similar to the separation of organized religion and the government guaranteed by the First Amendment to the Constitution Transformational Progress • Manage Portfolio of Brands, Titles, Assets • Acquisition of Affluent Media Group (formerly American Express Publishing) • Co-founder of 120 Sports (key mobile asset) Underinvestment in Business and Brands Underinvested in digital platforms and infrastructure |
 17 Strategic Priorities – Leverage Content and Brands Drive efficiencies to protect cash flows and free up resources for reinvestment Better align editorial function with business opportunities Enhance effectiveness of advertising sales Optimize subscription offers and consumer pay strategies Maximize value of brands and scale via adjacent monetization opportunities Innovate technology platform for consumers, advertisers and creative staff |
 18 Adjacent Opportunities • Continue to invest in digital media, including mobile and video, as well as social extensions of our brands Monetizing audience scale across platforms • Extend brands beyond print and digital magazines • E.g., direct sales or licensing agreements related to consumer products and services New consumer products and services • Leverage our extensive consumer data and insights and extend services to marketers Data collection and targeting • Expand our events and conferences • E.g., the Essence Festival is in its 20 th Year and is one of the largest live consumer events in the U.S. Experiential media • Expand ancillary services including end-to-end fulfillment and direct marketing expertise to third parties B2B services |
 Todd Larsen, EVP Evelyn Webster, EVP Lynne Biggar, EVP, Consumer Marketing & Revenue Key Prior Affiliations: American Express Mark Ford, EVP, Advertising 19 Accomplished Management Team Driving Change Management Team Management Team Colin Bodell – EVP and Chief Technology Officer Key Prior Affiliations: Amazon Greg Giangrande – EVP and Chief Human Resources Officer Current Role: Oversees all aspects of Human Resources Key Prior Affiliations: News Corporation, Hearst Corporation Lawrence Jacobs – EVP, General Counsel and Secretary Key Prior Affiliations: News Corporation Current Role: Oversees operations including PEOPLE, Sports Illustrated and TIME Key Prior Affiliations: Dow Jones & Company Current role: Oversees operations including InStyle, Real Simple and Southern Living and has oversight of IPC Media Key Prior Affiliations: IPC Media Current Role: Oversees consumer revenue and supervises direct marketing company Synapse, retail specialist Time/Warner Retail, and book publisher Time Home Entertainment Inc. Current Role: Responsible for driving overall advertising sales revenue and for building Time Inc.’s leadership in the marketplace; oversees Time Inc. Branded Solutions, Time Inc. Content Solutions, and MNI (“Media Networks Inc.”) Targeted Media Key Prior Affiliations: Time Inc. Current Role: Responsible for shaping the company’s strategic technology direction, day-to-day operations and acquiring and leveraging best in breed technology Current Role: Responsible for leading Time Inc.'s legal affairs and overseeing public company governance and compliance issues • • • • • • • • • • • • • • |
 20 Accomplished Board of Directors Guiding Us into the Future • David A. Bell - Chairman and Chief Executive Officer, Slipstream Communications, LLC • John M. Fahey, Jr. - Non-Executive Chairman, National Geographic Society • Manuel A. Fernandez - Former Executive Chairman, Sysco Corporation • Dennis J. Fitzsimons - Chairman, Robert R. McCormick Foundation • Betsy D. Holden - Senior Advisor, McKinsey & Company • Kay Koplovitz - Chairman and Chief Executive Officer, Koplovitz & Company LLC • J. Randall MacDonald - Former Senior Vice President, Human Resources, IBM Corporation • Joseph A. Ripp - Chairman and Chief Executive Officer, Time Inc. • Ronald S. Rolfe, Esq. - Retired Partner, Litigation, Cravath, Swaine & Moore LLP • Sir Howard Stringer - Retired Chairman of the Board, Sony Corporation Board of Directors Note: The above Director slate will be in effect on the spin-off distribution date (June 6 th , 2014) |
 21 OVERVIEW OF TIME INC. |
 22 Source: AAM 1H13, MRI Fall 2013, PIB, ComScore Dec. 2013 Note: Magazines Sold/Year calculated based on frequency multiplied by print circ as reported to AAM in 1H13 and Time Inc. doesn’t include Time for Kids or SI Kids, Time Inc. 2013 PIB share includes Affluent Media Group 1 Excludes CNN/Money Time Inc. is the across the board industry leader • #1 Print Audience • #1 in Online Audience • #1 in Print Ad Share PIB Advertising Revenue Share Category-Leading Portfolio of U.S. Brands MRI Print Audience (000) Multiplatform Unique Visitors (MM) 73.9 61.5 57.3 52.3 Hearst Meredith Condé Nast 1 104,665 80,730 66,470 50,313 Net Hearst (19 titles) Net Meredith (12 titles) Net Condé Nast (16 titles) 23.7% 18.0% 15.6% 11.1% 31.6% 5% 10% 15% 20% 25% 30% 35% 2009 2010 2011 2012 2013 Time Inc. Hearst Condé Nast Meredith All Other AMEX (20 titles) + |
 Time Inc. titles rank #1 or #2 in advertising revenue share in 15 of the 18 PIB categories in which we compete BRANDS CATEGORY 2013 AD RANK CATEGORY SHARE Celebrity Weekly #1 58% Sports – General #1 66% Women’s Fashion #1 19% Weekly news magazine #1 74% Women’s Lifestyle #2 19% Entertainment #1 41% Sports – Golf #1 55% Travel #1 35% Epicurean #1 21% Personal Finance #1 85% African American #1 56% Hispanic #1 51% Business – Corporate #2 30% Regional #2 33% Kids #2 39% Source: PIB Category-Leading Portfolio of U.S. Brands (Cont’d.) 23 |
 Time Inc. Has Diverse Ad Categories and Accounts in the U.S. Key Advertisers No single advertiser represents more than 5% of domestic revenues Time Inc.’s Portfolio Draws a Diverse Ad Base No single advertising category represents more than 16% of domestic revenues 24 • Female-oriented brands are the financial engine of Time Inc.’s portfolio PEOPLE (71% female audience), InStyle (91%), Real Simple (88%), Southern Living (79%), and Cooking Light (84%) 1974: PEOPLE 1987: Cooking Light 1990: Entertainment Weekly 1994: InStyle 2000: Real Simple 2004: All You Unparalleled advertiser opportunity to reach target audiences across key categories • Investments in lucrative categories draw advertisers: entertainment, fashion, and women’s lifestyle • Reaches ~50% of all U.S. adults each month and more women than Hearst or Meredith |
 Strong ROI Drives Advertiser Loyalty Source: Results based impact from the halo effect of 14 campaigns measuring both subscribers and newsstand buyers • Nielsen Catalina Pinpoint establishes the ROI magazines present to advertisers: – Leverages shopper data from over 60MM households to measure the sales impact of print and digital advertising – Created a single source approach to measuring cross platform (TV, Print, and Digital) sales impact – Demonstrated that a combined Print/Digital campaign can add a significant incremental sales impact to a large TV effort 18 11% Studies Time Inc. has conducted with Nielsen Catalina Solutions to date Average incremental sales lift, proving positive impact on in-store sales 25 |
 Magazine Effectiveness Case Study – Top 5 Beauty Advertiser 26 Note: Data is Delta=Control-Exposed; number of respondents: magazine n=49,965, online = 119.901, TV = n-79,375 Source: ORC Caravan, Feb 2013; Adobe Click Here Study, 2012; InsightExpress, 2013 Anti-Wrinkle + Firming Eye Cream Foundation Liquid Face Makeup Vivid Lip Color Collection Cream Lip Color Product type Outcome Campaign Print: Entertainment Weekly, Essence, InStyle, PEOPLE, People StyleWatch Print: Health, InStyle, PEOPLE, Real Simple Print: All You, Essence, InStyle, PEOPLE, PEOPLE en Español, PEOPLE StyleWatch Print: Essence, InStyle, PEOPLE, PEOPLE en Español, PEOPLE StyleWatch, Real Simple, Time • Sales Lift: 5% • Payback: 9.4x • Sales driven by HH penetration & purchase frequency • Share gain from key competitors • Sales Lift: 5% • Payback: 14.2x • Share gain from key competitors • Sales Lift: 2% • Payback: 7.7x • Sales driven by HH penetration & purchase frequency • Sales Lift: 5% • Payback: 11.5x • Share gain from key competitors |
 ranks #1 among women Exceptional Content & Access 27 Frequency 53x per year 8.3MM followers 2.8MM likes 19MM monthly multiplatform unique visitors 43MM audience per week $101.54 annual subscription price 47% over average of top peers Circulation and audience 40 years since its inception, PEOPLE remains the leading celebrity news and entertainment magazine brand in the U.S. Reaches 1 in 5 women each week Photo credit: Johnny Vy/©A.M.P.A.S Other takeaways Editorial Director of PEOPLE and EW Jess Cagle co-hosted ABC’s Oscars Red Carpet Live PEOPLE’S Royal Baby Collector’s issue was the only celebrity magazine to feature a photo of William and Kate with their newborn son Adjacent Adjacent Opportunities Opportunities Digital Scale New Franchises Events Multimedia Unparalleled access to celebrity and red carpet events Product Sales Publishes six annual special double-issues – World’s Most Beautiful, Sexiest Man Alive, Celebrity Body Slimdown, Best & Worst Dressed, Best (& Worst!) of the Year, and Half Their Size Source: MRI Fall 2013; ComScore Multiplatform February 2014; AAM Circulation Report December 2013 |
 20MM audience per week Exceptional Content & Access 28 • New Franchises • Events • Multimedia Frequency 56x per year 14MM monthly multiplatform unique visitors $41.55 annual subscription price 58% over average of top peers Other takeaways • In 2013, Sports Illustrated was ranked among the industry’s hottest brands by Advertising Age and AdWeek • SI franchises and extensions include Swimsuit, Sportsman of the Year, Extra Mustard, The MMQB and Swim Daily • SI’ s Peter King was named 2013 Sportswriter of the Year by the National Association of Sportswriters and Sportscasters. An SI writer has won the award four years in a row and nine times in the last 12 years Circulation and audience SI’s readers are more loyal than any other men’s sports magazine 1.2MM followers 4.1MM likes SI is the most respected voice in sports journalism, and has been published continuously since 1954 Adjacent Adjacent Opportunities Opportunities Source: MRI Fall 2013; ComScore Multiplatform February 2014; AAM Circulation Report December 2013 |
 Exceptional Content & Access 29 Source: GfK MRI Fall 2013; comScore Multiplatform March 2014; AAM Circulation Report December 2013 Frequency 13x per year Circulation and audience Other takeaways • InStyle is known for driving product sales • InStyle readers purchase an average of 8 advertised items per issue • Offers 360-degree experience: monthly magazine, bespoke supplements, InStyle.com, social media, reader events, celebrity parties and awards • InStyle’s Best Beauty Buys are the Oscars of the beauty world • Significant brand licensing opportunities (e.g. InStyle’s 2014 shoe collection for Nine West) 2.7MM followers 3.3MM likes InStyle was launched in 1994 as a spin-out of PEOPLE magazine’s “Star Tracks” column. It emphasizes celebrity and style. Adjacent Adjacent Opportunities Opportunities • Product Sales • Digital Innovation • E-Commerce • Events 9.6MM audience per month 88% over average of top peers 2.5MM monthly multiplatform unique visitors $22.74 annual subscription price 20MM consumers worldwide |
 Exceptional Content & Access 30 1 Includes Populist App and LIFE App Adjacent Opportunities • Contributor Network • Events • Time for Kids Extension Frequency 53x per year 5.6MM followers 3.4MM likes Other takeaways • In the past six months, TIME has had exclusive, rare interviews with Prince Charles, Janet Yellen, Edward Snowden and French President Francois Hollande • TIME was featured 75 times on the major network Sunday shows in 2013, with 42 guest appearances • Contributors to TIME in 2013 included: President Barack Obama, Hillary Clinton, Claire Danes, Bono, Jon Stewart • TIME recently launched Red Border Films, a documentary film unit hosted on Time.com Circulation and audience TIME magazine was ranked as America’s #1 trusted news brand in 2013 (GFK/Roper), and has been published continuously since 1923 18.7MM audience per week 24MM monthly multiplatform unique visitors 11MM mobile unique visitors and 7MM App download 1 $29.35 annual subscription price Source: MRI Fall 2013; ComScore Multiplatform February 2014; AAM Circulation Report December 2013 |
 Exceptional Content & Access 31 Frequency 12x per year Other takeaways • Bed Bath & Beyond carries 900 nationwide SKUs branded as Real Simple Solutions • Real Simple apps include “No Time to Cook?,” which offers 850+ easy-to-prepare recipes, “To Do Lists” and a “Gift Guide” featuring Real Simple editor gift picks • Real Simple programs and events include the Beauty & Balance Weekend in partnership with Exhale Spa, Pops on Nantucket in partnership with Coastal Living, and Big Apple Barbeque Circulation and audience Real Simple, launched in 2000, offers today’s time-pressured woman a guide she can trust to make her life a little easier 661K followers 1.1MM likes 8.1MM audience per week $20.02 annual subscription price 41% over average of top peers 5.4MM monthly multiplatform unique visitors Affluent audience: $97.8K median household income (vs. $62.8K for Better Homes and Gardens) National Magazine Awards for General Excellence Finalist since 2010 Adjacent Opportunities • E-Commerce • Product Sales • Contributor Network Source: MRI Fall 2013; ComScore Multiplatform February 2014; AAM Circulation Report December 2013 |
 IPC – U.K.’s Leading Consumer Multi-Platform Publisher Source: ABC Jan-Jun 2013, Nielsen Ad Dynamix Jan-Dec 2012, NRS JD 2012, Comscore March 2013, NRS PADD Jan-Jun 2013 32 #1 #1 #2 • Acquired in 2001 • 56 titles in 20 sectors; #1 or #2 in 18 sectors • Main business segments #1 #2 Multi-platform publisher measured by de- duped online and print reach Connect: Mass market women Southbank: Upmarket women Inspire: Affluent men and young men Marketforce: Magazine distribution ABC volume share (28.3%) & value share (21.9%) Print advertising share: 30.4% paging Subscription volumes Online publisher vs. other consumer magazine publishers Reach nearly half of U.K. population 63 Brands across print, web, mobile, tablet and events 4.5MM unique Users 10% reach of U.K. Internet population Reach Almost 60% Upscale women |
 33 Brand Extension Case Study |
 • Live streaming network delivered to mobile devices • Access to original sports programming in two-minute segments 24 hours a day: Hosted programming Interactive narratives Game footage Analysis Conversation Social commentary from players, newsmakers and fans • Partners: NHL, NBA, MLB.com, NASCAR Leading collegiate conferences via Campus Insiders, IMG College and Silver Chalice Brand Extension Case Study 34 Overview 120 Sports will be a Unique Platform • Multi-sport: The first time leagues have joined together for a multi-sport digital experience • Digital first: Not repurposed TV content • No authentication: No cable subscription required (unlike Watch ESPN) • Social & community: Deep social integration using patented technology • Personalization: Customizable based on personal team & athlete preferences • Estimated launch is Spring 2014 Expected to be an ‘always-on’ product to provoke fan engagement |
 • Essence was created as a forum that would enrich and improve the day-to-day lives of women • Essence Festival now hosts nearly 550,000 attendees, making it one of the largest live consumer events in the country • Past Festival performing artists and speakers have included PRINCE, Beyoncé, Aretha Franklin, John Legend, Kanye West, Lionel Richie, Rihanna, Stevie Wonder, Usher, Bill Cosby, Tyler Perry, Steve Harvey, Reverend Al Sharpton, Vanessa Williams and Hillary Rodham Clinton • Essence now touches an audience of over 3B with our rich media and PR campaign and strategic partnerships with media networks • The first official Festival App garnered over 15,000 downloads and tripled Essence mobile consumption • In 2013, Essence partnered with MSNBC for live coverage throughout the weekend, with a content partnership continuing into the 20 th anniversary • Essence Festival trended across social media with ~55,000 Instagram posts and more than 24,000 uses of #essencefest on Twitter • The Festival provides our nearly 35 sponsoring partners rich consumer engagement opportunities, with over 25 minutes spent engaging with their brands 35 Brand Extension Case Study Source: 2013 Attendance and Impressions Report It’s one of the largest Live Events in the U.S. |
 36 Strategic Rationale • Acquisition of iconic, premium brands with opportunities to leverage growth through new platforms • Ad sales opportunity based on expanded reach with Food & Wine and Departures • Broadens exposure to the important luxury category Cost / Operational Reasons • Operational synergies identified upfront through back office functions • Time Inc. was previously providing operational support, though the Company still expects to achieve multi-million dollar run-rate synergies Benefits of Scale – Affluent Media Group Acquisition Case Study |
 37 Benefits of Scale – Vertical Integration • Vertically integrated with best-in-class subscriber acquisition, fulfillment and distribution operations • Ability to offer third party services to publishers and other sub-scale businesses • Fixed costs of operating scale provide real synergies for acquisitions • Third party services include: Production (e.g., direct mail materials, premiums, wraps) Corporate and digital ad sales and books and digital publishing Customer service and consumer marketing Magazine fulfillment services for publishers • Subscription management • Credit card processing • Circulation statistics Multichannel marketing of subscriptions through 3 rd parties Customer targeting to increase circulation for publishers Wholesale retail marketing and distribution services to publishers • Logistics • Consumer insight • Retail strategy • Category management • PoS analytics Built For Scale |
 Subscriber Relationships Provide Extensive Consumer Insight and Data 38 • Transaction database of 150MM U.S. individuals • Offline transaction and demographic information • 20 years of magazine subscribers and book buyers • Digital direct and opt-in 3 rd party data • Clickstream data from digital properties • Third party data used for demographic, behavioral, and geographic targeting Time Inc. Database Data Currently Leveraged for… Consumer Marketing Modeled direct mail and email campaigns Segmentation & targeting for retention efforts Customized marketing (e.g., SI Favorite Team) Targeted advertising (print) Selective binding for print ad campaigns ROI analysis to determine campaign effectiveness Offline to online targeting segments And Will Drive Future Monetization Strategies Smarter Online Marketing • Behavioral and website engagement data drives enhanced subscription targeting and Paid Content strategies • Explore modeling efforts to drive more effective lead generation campaigns Enhanced Offline Marketing • Incorporate new data into direct mail, email and retention models and marketing efforts • Move toward multi-channel marketing for customers interacting with our content on multiple platforms “Portfolio Marketing” • Target customers by profitability potential across Time Inc. portfolio, rather than individual brands • Adopt “portfolio” marketing across areas of interest; offer products from multiple brands • Enhanced cross-selling/up-selling by prioritizing offers based on lifetime value for Time Inc. Targeted Advertising • Combine data, context and content to drive addressable media opportunities for clients • Offline to online targeting Time Inc. understands what people like and what they engage with |
 39 • Enhance portfolio of digital products and drive digital magazine revenue • Increase recurring/automated billing and drive online/credit card purchases • Reduce costs in traditional circulation acquisition efforts • Maintain premium pricing • Modernize customer communications • Improve customer targeting • Consumer shift from print to digital • Continued pressure on conversion rates and economics of circulation acquisition • Rising median age of magazine subscriber • Limitation of digital magazine “all access replica” strategy Tactics Challenges Time Inc. Subscription Overview Subscription Revenue ($MM) $754 $748 $721 2011A 2012A 2013A Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired |
 40 • Aggressively pursue consumer activation – Consumer marketing techniques (value added promotions, register messaging, couponing) • Continue to grow bookazine publishing unit at newsstand • Implement selective price increases • Expand All You magazine nationally • Focus on local market interests • Inventory management – Reduce marginal draw – Maintain prior issue remnant inventory to produce a longer on sale period • Declining channel, sales and profit • Supply chain faces declining revenues against a largely fixed cost base • Regional business interruptions are possible if a wholesaler exits the market suddenly • The loss of publishers could further erode wholesaler overhead contribution until costs can be rationalized to reflect lower outbound volume • Continued sales declines could affect publisher rate base • Magazine SKU’s are increasingly facing competition including other products at checkout, such as soda and gum Tactics Challenges Time Inc. Newsstand Overview Newsstand Revenue ($MM) $498 $447 $389 2011A 2012A 2013A Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired |
 41 • Re-focus on selling and communicating benefits of print • Improve ease of access for agencies and other large advertisers • Continued growth in programmatic advertising as demand for ultra-premium inventory grows • Ad rates (CPM) for ultra-premium digital inventory growing in concert with rising demand • More effective utilization of first-party data proving to be a critical competitive advantage over other ad networks and content publishers • Shift toward digital with subsequent decline in demand for print • Premium inventory levels are decreasing as advertiser's ability to measure viewable ad impressions improves and they demand higher levels of viewable inventory • As mobile page views continue to grow rapidly and at the expense of desktop, premium inventory levels are declining • A lack of optimization technology impedes Time Inc. from attracting the largest performance advertisers • Mobile monetization rates do not sufficiently replace web display Tactics Challenges Time Inc. Advertising Overview Advertising Revenue ($MM) $1,923 $1,819 $1,807 2011A 2012A 2013A Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired |
 Digital Strategy for Growth 42 • 1.1B monthly pageviews with 915MM minutes spent on our sites • 45+ websites with 73.9MM 1 monthly unique visitors in the U.S., 42MM of which were mobile • Database of 150MM U.S. individuals including offline transaction and demographic information • Tablet versions and mobile apps for all U.S. magazines • Digital and mobile unique visitors grew 17% and 72% in the last 10 months 2 , respectively Digital and Mobile Foundation Source: ComScore 1 Excludes CNN/Money 2 Through February 2014; ComScore began providing YOY comparisons for multiplatform audiences in April 2013 Multi-media Strategy • Investment in video drove 50% YOY growth in in-house original production and more than 75% YOY growth in user initiated streams • Hiring entrepreneurial digital talent • Developing cross-brand video aggregator that brings together the best content from across the Time Inc. portfolio Scaling for Mobile and the Social Web • Brand presence across all major social networking platforms • Preferred partners with Facebook and Twitter for launching and testing new products • Driving increased engagement by enabling “contributor” platforms across many of our brands Monetization and Innovation • Opportunities exist for product extensions including new mobile-first brands, e-commerce, etc. • Build on strength of: a) high-touch direct, custom and native advertising sales programs; and b) benefits of scale and access to data for exchange/programmatic sales • 2014 innovation runway includes testing new social networks and developing next-gen Apps • Fostering an “Innovation Hub / Council” and a digital-first culture |
 FINANCIAL OVERVIEW 43 |
 44 Ability to Transform Cost Base to Maintain Profitability Strong Free Cash Flow Profile to Fund Transformation Strong Balance Sheet Focused on Balance Between Reinvestment in the Business and Returning Capital to Shareholders Key Financial Highlights Increase Monetization of Adjacent Opportunities |
 45 Historical Financials Revenue ($MM) Adjusted OIBDA 1 ($MM) Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired 1 Adjusted OIBDA is OIBDA excluding asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions; See Appendix for Reconciliation of Operating Income to Adjusted OIBDA 2 Adj. OIBDA margin is defined as Adjusted OIBDA divided by revenue 2 $1,923 $1,819 $1,807 $754 $748 $721 $498 $447 $389 $502 $422 $437 $3,677 $3,436 $3,354 2011A 2012A 2013A Advertising Subscription Newsstand Other $740 $617 $587 20.1% 18.0% 17.5% 2011A 2012A 2013A Adj. OIBDA margin |
 • Streamline the edit process and eliminate duplication across brands 46 Ability to Transform the Cost Base Our operating plan includes substantial cost efficiencies Organizational restructure Editorial Process re-engineering and global sourcing • Dissolve complex operating structure into a single portfolio of U.S. brands • Drive efficiencies and take out layers of overhead • Realign compensation and incentive policies • Synergy from Affluent Media Group acquisition • Review of functional areas (finance, consumer marketing, operations, research and IT) Procurement • $500MM of annual addressable spending • Renegotiation of multi-year print contracts in the U.S. and U.K. Real Estate • Time & Life Building lease ends 2017; expect annual real estate-related savings of ~$50MM 1 • Anticipate incurring ~$120MM in costs primarily related to tenant improvements in order to achieve such annual savings • Vacate existing floors in current space 1 Exploring potential scenario to accelerate real estate move and potential savings into 2016 |
 Strong Free Cash Flow Profile 47 Capital Expenditures ($MM) Free cash flow 1 ($MM) Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired 1 Free Cash Flow is defined as cash provided by operations less capital expenditures; See Appendix for Reconciliation of Net Income to Free Cash Flow 2 Adjusted OIBDA is OIBDA excluding asset impairments, restructuring and severance costs, gains or losses on operating assets and external costs related to mergers, acquisitions or dispositions; See Appendix for Reconciliation of Operating Income to Adjusted OIBDA • Minimal ongoing operating capital expenditure requirement excluding approximately $120MM of tenant improvements related to new lease • Substantial capacity to reinvest in the business and adjacent opportunities • Significant cash conversion to fund return of capital to shareholders Low capital requirements provide flexibility for deleveraging, reinvestment in the business and capital distribution to shareholders 2 $48 $34 $34 2011A 2012A 2013A $426 $427 $384 57.6% 69.1% 65.4% 2011A 2012A 2013A Cash Conversion (% of Adj. OIBDA) |
 48 • In connection with the spin-off, Time Inc. has raised $1.4 billion of funded debt, in the form of a $700MM 1st lien Term Loan B (subject to closing conditions) and $700MM of Senior Unsecured Notes Net proceeds from the financing will be used to purchase U.K. publishing operations from Time Warner and pay a special dividend to Time Warner The Company also has access to an undrawn $500MM 1st lien Revolving Credit Facility (subject to closing conditions) • Moody’s and S&P credit ratings Corporate ratings of Ba3 and BB, respectively, both with stable outlook Senior Secured Credit Facilities ratings of Ba1 and BBB-, respectively Senior Unsecured Notes ratings of B1 and BB, respectively Capital Structure ($MM) Amount x 2013 Adj. OIBDA Cash (estimate) $150 $500MM Revolving Credit Facility - Term Loan B 700 Secured Debt $700 1.2x Senior Notes 700 Total Debt $1,400 2.4x Net Debt $1,250 2.1x 2013 Adj. OIBDA¹ $587 Pro Forma Capitalization as of December 31, 2013 (unaudited) Note: 2013A includes Affluent Media Group for the portion of the year after which it was acquired; Time Warner will retain liability of the This Old House Note maturing in 2017 1 Adjusted OIBDA is OIBDA excluding asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions; See Appendix for Reconciliation of Operating Income to Adjusted OIBDA |
 49 • Maintaining strategic flexibility and adequate access to debt capital markets 2.4x gross leverage and 2.1x net leverage at spin with no significant maturities before 2019 Target 2.0x - 2.5x long-term leverage Maintain ample liquidity from strong Free Cash Flow and committed revolving credit facility • Allocating capital to create value Investment in the business Strategic acquisitions Direct returns to shareholders Repayment of debt Balanced Approach to Capital Allocation Conservative balance sheet Balanced capital policy |
 50 Time Inc. Outlook for 2014 ($MM) 2013 ACTUAL 2013 ACTUAL 2014 RANGE 2014 RANGE Revenue – as reported $3,354 Flat to +2% Revenue ex. Time Inc. Affluent Media Group $3,282 (3%) to (5%) Adjusted OIBDA 1 margin (%) 17.5% 16.25% to 17.0% Public company costs $8 $27 to $32 Share-based compensation expense $18 $35 to $40 Interest expense, net $3 ~$45 Depreciation and amortization 2 $127 $160 to $165 Capital expenditures 2 $34 $35 to $40 1 We define Adjusted OIBDA as OIBDA adjusted for asset impairments, restructuring and severance costs, gains or losses on operating assets, and external costs related to mergers, acquisitions or dispositions 2 Does not reflect any impacts from (a) the anticipated relocation of our headquarters building, (b) possible future sales of operating assets, (c) possible future acquisitions and dispositions (including costs related thereto) or (d) restructuring and severance actions that may be initiated in the future |
 51 • Industry leading collection of media brands • Large, highly engaged audience • Brands represent consumer passions that can be monetized across platforms • Subscriber relationships provide extensive consumer insight and data • Experienced management team with proven track record to drive transformation • Unleashing entrepreneurship and driving P&L accountability • Focus on brand extension and content scale opportunities • Strong Free Cash Flow profile to fund our transformation • Balanced approach to capital allocation Summary Highlights |
 APPENDIX 52 |
 53 Reconciliation of Operating Income to OIBDA and Adjusted OIBDA Note: 2013A includes Affluent Media Group (AMG) for the post-acquisition period; 1 Asset impairments for each year are primarily trade name impairments; 2 Restructuring and severance costs for each year primarily reflect headcount reductions and lease exit costs; 3 For the year ended December 31, 2012, the $36MM pretax loss relates to the sale of our school fundraising business, QSP. For the year ended December 31, 2013, the $13MM pretax gain relates to the settlement of a contractual arrangement with AMG that pre-dated the acquisition; 4 For the year ended December 31, 2012, the $1MM charge relates to unconsummated acquisitions. For the year ended December 31, 2013, the $1MM charge relates to the AMG acquisition ($MM) 2011 2012 2013 Actual Actual Actual Operating Income $563 $420 $330 Depreciation 100 91 85 Amortization 42 36 42 OIBDA $705 $547 $457 Asset impairments 1 17 6 79 Restructuring and severance 2 18 27 63 Gains/losses on operating assets 3 — 36 (13) External costs related to mergers, acquisitions or dispositions 4 — 1 1 Adjusted OIBDA $740 $617 $587 |
 54 Reconciliation of Operating Income to Adjusted OIBDA - 2014 Outlook Note: When providing a projection for a non-GAAP measure, a reconciliation to the most directly comparable GAAP measure is required to the extent available without unreasonable efforts. In such reconciliations, we may indicate an amount or range for GAAP measures that are components of and that arithmetically add up to the non-GAAP financial measure. Our indications of the GAAP components must not be interpreted as explicit or implicit projections of those components. We have made numerous assumptions in preparing our projections, including those described on the 2014 Outlook slide. These assumptions, including the amounts of the various components that comprise a financial measure, may or may not prove to be correct. We will consider our projection of a non-GAAP financial measure to have been achieved if the statement we make about that non-GAAP measure is satisfied, even if the GAAP components differ materially from those indicated in an earlier reconciliation ($MM) 2013 Actual Low High Operating Income $330 $204 $231 Depreciation 85 85 89 Amortization 42 76 76 OIBDA $457 $365 $396 Asset impairments, restructuring and severance, gains/losses on operating assets, and external costs related to mergers, acquisitions and dispositions 130 180 186 Adjusted OIBDA $587 $545 $582 2014 Guidance |
 55 Free Cash Flow Reconciliation 1 Note: 2013A includes Affluent Media Group for the post-acquisition period ($MM) 2011 2012 2013 Actual Actual Actual Net income $368 $263 $201 Depreciation and amortization 142 127 127 Asset impairments 17 6 79 Loss on disposal of QSP Business — 36 — Equity-based compensation 41 39 18 All other, net, including working capital charges (94) (10) (7) Cash provided by operations 1 $474 $461 $418 Capital expenditure (48) (34) (34) Free Cash Flow $426 $427 $384 Includes foreign net income taxes paid of $7MM, $12MM and $13MM for the years ended December 31, 2011, 2012 and 2013 |