1
UBS 38th Annual Global Media
and Communications
Conference
and Communications
Conference
December 7, 2010
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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 and
publishing advertising revenues, as well as any guidance related to the Company’s financial
performance.
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 and
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 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 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.
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 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 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.
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National Media
Brands
Brands
Meredith
Integrated
Marketing
Integrated
Marketing
Local Media
Brands
Brands
Broad Media and Marketing Footprint
1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
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Vision 2013 Growth Strategies
Strengthening Advertising Revenue Performance
Change from prior year period
Source: Meredith, calendar year quarters
* = Estimate
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Q4
Q1
Q2
Q3
Q4
Up low
double
digits
double
digits
Q3
Q2
Q1
*
Calendar 2009
Calendar 2010
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Delivering Record Political Ad Revenue
Net Political Revenue for Season (July-December)
$14.1
$20.3
$18.4
$32.6
$22.9
$33.2
Calendar years
Delivering National Market Share Gains Over Time
Meredith Share of Magazine Industry Advertising Revenues
9.3%
9.5%
12.3%
Source: Publishers Information Bureau
Fiscal years ended June 30
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Summary: Current Ad Environment Improving
Magazines:
• Modest advertising gains
• Achieving higher rates per advertising page
• Online advertising up strongly
Television:
• Delivering strong top-line growth
• Political advertising season set record
• Automotive rebounding strongly, but other categories also up
1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
9
Vision 2013 Growth Strategies
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Building the National Media Business of the Future
Brand Strength
Revenue Growth
Cost and Expense
Containment
Containment
Next Generation
Operating Model
Operating Model
• Magazine readership up
• Digital audience growing
• Delivering higher net revenues per page
• Integrated marketing, brand licensing growing
• Q1 FY11 costs down 2 percent year over year
• Q1 FY11 costs down 14 percent over two years
• Optimized Special Interest Media business
• Moving consumer marketing activities online
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Building the Local Media Business of the Future
Brand Strength
Revenue Growth
Cost and Expense
Containment
Containment
Next Generation
Operating Model
Operating Model
• Delivering strong TV news ratings
• Better daily show in 80 markets (4 of Top 5)
• Q1 FY11 spot ad revenue up 27 percent
• Increasing online and mobile activities
• Automated newsrooms
• Q1 FY11 costs down 1 percent over 2 years
• Centralized master control, traffic & research
• Creating 24-hour continuous news platform
1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
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Vision 2013 Growth Strategies
Meredith Interactive Overview
National Media Group
Local Media Group
Total: 25 websites
Total: 30 websites + apps
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Growing Audience Online
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Average Monthly Unique Visitors to all Meredith websites
27% CAGR
18
11
7
3
Source: Meredith; $ in millions
Fiscal years ended June 30
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Growing Presence in Mobile
• Completed Hyperfactory acquisition:
– Mobile content and marketing specialist
– Working on additional B2B and B2C initiatives
• Business to Business:
– Developing mobile apps, web sites and
marketing campaigns for corporate clients
marketing campaigns for corporate clients
• Business to Consumer:
− Launched mobile versions of our key brands
− TV stations offer multiple apps
− Working with Next Issue Media on eTablets
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• Deeper and richer brand experience
• Features additional content, videos and slideshows
• Multiple revenue streams:
- Subscriptions, single copy sales and bundles
- Advertising
Full eTablet Editions to Launch in Spring 2011
1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
18
Vision 2013 Growth Strategies
Better Homes and Gardens I It’s Where Life Happens
Better Homes and Gardens 360º Approach
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Better Homes and Gardens I It’s Where Life Happens
Better Homes and Gardens Products at Retail
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Growing Revenues from Brand Licensing
$ in millions
Fiscal years ended June 30
28% CAGR
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1
3
3
Parents & American Baby: The Next Megabrand
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1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
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Vision 2013 Growth Strategies
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Growing Integrated Marketing Capabilities
Online
marketing
marketing
Online, social
media, database
marketing
media, database
marketing
Healthcare
marketing
marketing
Mobile
Marketing
Marketing
Custom
Publishing
Publishing
2006
2007
2008
2009
Pre-2006
Custom Publishing
100%
Custom Publishing
49%
CRM/
Digital
Digital
51%
Strong Revenue Growth and Diversification
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Fiscal 2005
Fiscal 2010
Direct Mail
Social
Promotion
Email
Mobile
Website
Healthcare
Professionals
Professionals
Case Study: Nestlé/Gerber
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1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
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Vision 2013 Growth Strategies
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Track Record of Dividend Increases
12% CAGR
Calendar years
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200
Stock Option Exercises
$2,000
Utilization of Cash
200
Net Debt
300
Capital Expenditures
600
Acquisitions, Net of Dispositions
$2,000
Available Cash
$1,800
Operating Cash Flow
300
Dividends
$600
Share Repurchases
$900
SUBTOTAL
Returned to Shareholders
Reinvested in Business
$900
SUBTOTAL
Use of Cash: Fiscal 2001 through 2010
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October 2010E | December 2010E | |
Total Company ad revenue | Up low double digits | Up low double digits |
Total National Media ad revenue | Up low to mid single digits | Up low to mid single digits |
Local Media net political ad revenue | $15-18M | $21.6M |
Local Media non-political ad revenue | Up low to mid single digits* | Flat to up low single digits |
Total Local Media ad revenue | Up low 20%’s | Up low 20%’s |
Fiscal 2011 Second Quarter and Full Year Outlook
*Depending on the strength of political advertising and its related impact on total advertising
inventory, non-political pacings may moderate as the quarter progresses
Second quarter earnings per share | $0.75 to $0.80 | $0.75 to $0.80 |
Full year earnings per share | $2.50 to $2.75 | $2.50 to $2.75 |
1. Exploit the economic recovery
2. Optimize our core businesses
3. Expand our digital businesses
4. Enhance and extend key brands
5. Significantly grow Meredith Integrated Marketing
6. Build shareholder value over time
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Vision 2013 Growth Strategies
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