TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
MARGE
MAGNER
CHAIRMAN OF THE BOARD, TEGNA
2017 INVESTOR DAY
GRACIA
MARTORE
PRESIDENT & CEO, TEGNA
2017 INVESTOR DAY
DAVE
LOUGEE
INCOMING PRESIDENT & CEO, TEGNA
2017 INVESTOR DAY
DAVE LOUGEE25-Year Industry Career
Broadcasting Hall of Fame Inductee
Joint of Board the National Chair Association of Broadcasters
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
FORWARD LOOKING STATEMENT
Any statements contained in this presentation that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements with respect to the potential separation and distribution of TEGNA’s digital automotive marketplace business to its stockholders (the“spin-off ”) and the expected financial results of the company after thespin-off. Any forward-looking statements contained herein are based on our management’s current beliefs and expectations, but are subject to a number of risks, uncertainties and “changes in circumstances, which may cause the company’s actual results or actions to differ materially from what is expressed or implied by these statements. Such risks include, but are not limited to: uncertainties as to the timing of thespin-off or whether it will be completed, the possibility that various closing conditions for thespin-off may not be satisfied or may be waived, the expected tax treatment of thespin-off, the impact of thespin-off on the company’s business and the availability and terms of financing. Economic, competitive, governmental, technological and other factors and risks that may affect the company’s operations or financial results expressed in this presentation are discussed in the company’s Annual Report on Form10-K for the fiscal year ended December 31, 2016, and in the company’s subsequent filings with the U.S. Securities and Exchange Commission (SEC). We disclaim any obligation to update these forward-looking statements other than as required by law. This presentation also contains a discussion of anon-GAAP financial measure that the company presents in order to allow investors and analysts to measure, analyze and compare its financial condition and results of operations in a meaningful and consistent manner. A reconciliation of thenon-GAAP financial measure to the most directly comparable GAAP measure can be found in the Form8-K.
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2017 INVESTOR DAY
AGENDA
1 INVESTMENT THESIS
2 GROWTH STRATEGY
3 STRATEGIC INITIATIVES
4 REGULATORY ENVIRONMENT
5 CAPITAL ALLOCATION AND FINANCIAL OUTLOOK
6 Q&A
2017 INVESTOR DAY
TEGNA FOOTPRINT
2017 INVESTOR DAY
TEGNA FOOTPRINT
46
Stations
38
Markets
2017 INVESTOR DAY
TEGNA FOOTPRINT
Largest owner of top 4 a?liates in the top 25 markets
2017 INVESTOR DAY
TEGNA FOOTPRINT
Largest NBC a?liate group
2017 INVESTOR DAY
TEGNA FOOTPRINT
1/3
of TV Households
2017 INVESTOR DAY
TEGNA FOOTPRINT
27 20
#1 or #2 in #1 or #2 in late news morning news
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Trusted Content Original Storytelling Impactful Investigations
2017 INVESTOR DAY
Marketing Solutions
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TEGNA PURPOSE
To Serve the Greater Good of our Communities
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INVESTMENT THESIS
Best-in-Class Operator
2017 INVESTOR DAY
INVESTMENT THESIS
High-Quality Assets & Strong Cash Flow
2017 INVESTOR DAY
INVESTMENT THESIS
Innovation
2017 INVESTOR DAY
INVESTMENT THESIS
Regulatory Changes
2017 INVESTOR DAY
INVESTMENT THESIS
Capital Allocation Strategy & Strong Balance Sheet
2017 INVESTOR DAY
GROWTH STRATEGY
Embracing change, growing market share, and expanding the markets we are targeting Accelerating the growth and monetization of our multi-platform businesses Growing subscriber revenues with both traditional cable and satellite operators and new OTT entrants in light of shifting audience preferences Further diversifying our revenue base by investing in new business models that leverage our strong assets and scale
2017 INVESTOR DAY
CONTENT TRANSFORMATION
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
DIGITAL FOOTPRINT
32M
Across Digital Platform
2017 INVESTOR DAY
DIGITAL FOOTPRINT
19M
Social Followers
2017 INVESTOR DAY
DIGITAL FOOTPRINT
+42%
Growth
2017 INVESTOR DAY
DIGITAL FOOTPRINT
Top 10
Facebook Publisher
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DIGITAL FOOTPRINT
Video Plays / Month
2017 INVESTOR DAY
PROGRAMMING
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
STATE OF TV VIEWING
4 Hours
23 Minutes
a day watching live television
Down Only
4 Minutes
a day from the previous year
Source: The Nielsen Total Audience Report, Q4 2016 The Nielsen Company
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2018 LIVE EVENTS
POLITICAL ADVERTISING
2018 ELECTIONS
2017 INVESTOR DAY
2018 ELECTIONS
36
Governor Races
14
Senate Races
2018 ELECTIONS
2017 INVESTOR DAY
84%
2017 INVESTOR DAY
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
2017 INVESTOR DAY
360° CLIENT SOLUTIONS
Deep Consumer Insights
Unique Creative Solutions
Customization
2017 INVESTOR DAY
SUBSCRIBER REVENUE GROWTH
800 ~$720M
600 $582M
$449M
400 $366M
$226M
200 $123M $158M
0
2011P 2012P2013P2014P2015A2016A2017E
2017 INVESTOR DAY
SUBSCRIBER REVENUE GROWTH
800
$720M 600 $582M $449M
400 $366M +24% $226M
200 $158M $123M
0 2011P 2012P 2013P 2014P 2015A 2016A 2017E
TEGNA
2017 INVESTOR DAY
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OTT PROVIDERS AND SKINNY BUNDLES
2017 INVESTOR DAY
OTT PROVIDERS AND SKINNY BUNDLES
Abc
Nbc
Cbs
Direct Conversations
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
OTT
Positive Economics Insulate TEGNA from Cord Cutting
2017 INVESTOR DAY
ED BUSBY
SENIOR VICE PRESIDENT, STRATEGY
2017 INVESTOR DAY
BUSINESS
DIVERSIFICATION
Intelligent Ad Automation
B2B Marketing Services
2017 INVESTOR DAY
INTELLIGENT AD AUTOMATION
2017 INVESTOR DAY
PREMION CONTENT PARTNERS
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INTELLIGENT AD AUTOMATION
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PREMION
175
Markets
700
Campaigns per Month
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PRICING
Big
Data
Machine Learning
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SOPHISTICATED PRICING PLATFORM
TEGNA
2017 INVESTOR DAY
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B2B MARKETING SERVICES
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B2B MARKETING SERVICES
Search
Email
Targeted Banner
Social Reputation Management
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B2B MARKETING SERVICES
Marketing Center of Excellence
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Advanced
Advertising
4K + High Dynamic Range Resolution
Higher Frame Rate
Virtual Reality
3D Audio
Second Screen Experiences
Mobile
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
REGULATORY CHANGES
UHF Discount Reinstated
Expected Relaxation ofIn-Market Rules
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
VICTORIA
HARKER
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
KEY DRIVERS OF VALUE CREATION
Driving Organic Revenue Growth and Strong Cash Flow
Content and Sales Innovation
High
Impact
Acquisitions and
New
Growth
Opportunities
TEGNA
2017 INVESTOR DAY
MEDIA RESULTS
2017 INVESTOR DAY
2017 INVESTOR DAY
FINANCIAL UPDATE: TEGNA MEDIA
2016 Total Revenue:
$1.9B+
• Pro forma basis, excluding Cars.com and CareerBuilder
• Excludes future acquisitions
2017 INVESTOR DAY
FINANCIAL UPDATE: TEGNA MEDIA
2017 Revenue:
Low to Mid Single Digits
• Pro forma basis, excluding Cars.com and CareerBuilder
• Excludes future acquisitions
2017 INVESTOR DAY
FINANCIAL UPDATE: TEGNA MEDIA
2017 EBITDA Margin:
35-37%
• Pro forma basis, excluding Cars.com and CareerBuilder
• Excludes future acquisitions
2017 INVESTOR DAY
FINANCIAL UPDATE: TEGNA MEDIA
2018 Revenue:
Low to Mid Teens
2018 EBITDA Margin:
39-42%
• Pro forma basis, excluding Cars.com and CareerBuilder
• Excludes future acquisitions
2017 INVESTOR DAY
BEST IN CLASS MARGINS
Impact of scale and strength of footprint in negotiations
Portfolio of strong stations and leading a?liate positions
Pursue e?ciencies through centralization and automation
Culture of ?nancial accountability
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
FOCUS ON DEBT REDUCTION HAS YIELDEDINDUSTRY-LOW LEVERAGE LEVELS
Leverage Levels on Par with Peers
Total Debt / (Average 2016+2017 EDITDA)
6.0x Total Debt / (Average 2016+2017 EDITDA)
5.6x
5.0x 4.7x
3.9x ~ 4.1x
1.7x
Tribune Gray Tribune Nexstar Sinclair E.W. TEGNA Media Television, Media + Media Group, Broadcast Scripps (post spin) [3] Company Inc. Sinclair [1] Inc. [2] Group, Inc.
Note: Calendarized to 12/31year-end
[1] Less than 5.0x leverage on a blended 2016/2017 EBITDA basis at 12/31/17, including synergies per investor presentation on 5/8/2017 [2] Pro forma for merger with Media General; leverage per Nexstar Q1 press release [3] Assumes $650M dividend from Cars.com
2017 INVESTOR DAY
OTHER KEY FINANCIAL METRICS
2017E 2018E
Depreciation $50M—$52M $50M—$52M Amortization $22M—$24M $20M—$22M
Interest Expense $200M—$205M $175M—$180M
Total
TEGNA Leverage Ratio ~ 4.1x 3.6x—3.8x
Corporate Expenses Mid $50M ~ $50M
Capital Expenditures $30M—$35M $30M—$35M E?ective Tax Rate 34%—35% 35%—36%
• Pro forma basis excluding Cars.com and CareerBuilder
• Excludes future acquisitions
• Capital expenditure in 2018 excludes gross expenditure of ~$15M related to the anticipated spectrum repacking (13 markets), part of which we expect government to reimburse as part of repacking proceeds. Also, 2018 excludes about $10M of corporate headquarter building expenditure which will be partly offset by a landlord tenant improvement allowance.
2017 INVESTOR DAY
FINANCIAL UPDATE: TOTAL COMPANY WITH CAREERBUILDER EXCLUDING CARS.COM
2016 REVENUE: $2.7B
(PRO FORMA BASIS)
2017 REVENUE:In-Line
(PRO FORMA BASIS) with 2016
• Pro forma represents TEGNA reported GAAP revenues of $3.3B less $0.6B of Cars.com revenues. Cars.com is expected to be spun on May 31, 2017.
2017 INVESTOR DAY
CAPITAL ALLOCATION STRATEGY
Invest in growth through organic expansion
Opportunistically reduce debt, increasing firepower and flexibility for future investments Consider M&A and investment opportunitiesin-line with our integrated strategy Return capital to shareholders from free cash flow Dividends $0.28 per share/per year Extinguishing share repurchase program and will assess reinitiating in the future
2017 INVESTOR DAY
WELL POSITIONED FOR M&A: HEADROOM
27% against the cap
Ample headroom to pursue vertical opportunities
Potential forin-market consolidation opportunities within existing TEGNA footprint
U.S. TV Household Reach
70%
With UHF Total Reach FCC Household Cap
39% 38% 37% 37%
23%
19% 18%
42% 16%
11% 11% 10%
26% 22% 24% 21% 7% 20% 13% 11% 10%
6% 6% 7% 4%
2017 INVESTOR DAY
WELL POSITIONED FOR M&A: SYNERGIES
TEGNA achieves considerable cost and mechanical synergies
TEGNA’s strategic initiatives deliver additional synergies
2017 INVESTOR DAY
EXCEPTIONAL ACQUISITION AND INTEGRATION TRACK RECORD
2017 INVESTOR DAY
EXCEPTIONAL ACQUISITION AND INTEGRATION TRACK RECORD
EXPECTATIONS:
• $175M of EBITDA synergies within ? three years?
•Non-GAAP EPS accretion of $0.43 ? per share for the ? ?rst 12 months
2017 INVESTOR DAY
EXCEPTIONAL ACQUISITION AND INTEGRATION TRACK RECORD
2017 INVESTOR DAY
EXCEPTIONAL ACQUISITION AND INTEGRATION TRACK RECORD
EXPECTATIONS:
• Annual revenue ? of $50M
• Accretive to Non-? GAAP EPS within ? 12 months
2017 INVESTOR DAY
EXCEPTIONAL ACQUISITION AND INTEGRATION TRACK RECORD
ACHIEVED:
EXCEEDED TARGETS— WELL AHEAD
OF TIME
2017 INVESTOR DAY
IN-MARKET CONSOLIDATION OPPORTUNITY
Represents substantial opportunity to create value Not yet occurred in majority of mid to large markets where TEGNA operates Achievable through variety of structures Substantial mechanical synergies
2017 INVESTOR DAY
IN-MARKET CONSOLIDATION OPPORTUNITY:? EBITDA MARGIN POTENTIAL
Potential to Duplicate
Cost
Deliver 10—15 Expense
E?ciencies
Percentage Point Reductions Increase in EBITDA Margin on the Acquired Incremental
Revenue
Station Upside
TEGNA
2017 INVESTOR DAY
2017 INVESTOR DAY
INVESTMENT THESIS
High-Quality
Best-in-Class Assets & Innovation Operator Strong Cash Flow
Capital Allocation
Regulatory Strategy & Changes Strong
Balance Sheet
Q & A
2017 INVESTOR DAY
TEGNA
2017 INVESTOR DAY
