EX-99 2 slides.htm EXHIBIT 99 SLIDE PRESENTATION slides.htm
Roth Media/Software
Conference
New York, Sept. 16, 2009
 
 
 
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 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.
 
 
 
3
Agenda
§ Meredith Overview
§ Advertising Overview
§ Performance Improvement Plan
§ Financial Overview
 
 
 
4
Broad Media and Marketing Footprint
MEREDITH OVERVIEW
§ Integrated Marketing
§ Brand Licensing
§ Retransmission fees
§ Video Solutions
NATIONAL BRANDS
Revenues: $900 million
LOCAL BRANDS
Revenues: $270 million
§ 25 Subscription titles
§ 150 Newsstand titles
§ 30+ Websites
§ 12 television stations
§ 10% of U.S. households
§ 25+ Websites
MARKETING SERVICES &
DIVERSIFIED
Revenues: $240 million
4
 
 
 
5
Powerful National Brands Across Life Stages
MEREDITH OVERVIEW
PARENTHOOD/FAMILY
HOME/SHELTER
WOMEN’S HEALTH & LIFESTYLE
25 subscription magazines
30+ websites 15MM unique visitors
150+ Special Interest titles
 
 
 
6
12 network affiliates
10MM+ households
Diverse Local Media Portfolio Across Country
MEREDITH OVERVIEW
25+ websites
5MM unique visitors
Mobile platforms
Syndicated Television
Kansas City
Phoenix
Flint-Saginaw
Atlanta
Nashville
Las Vegas
Portland
Springfield
New York
Des Moines
 
 
 
7
MEREDITH INTEGRATED
MARKETING
BRAND LICENSING
RETRANSMISSION/VIDEO
SOLUTIONS
Growing Marketing Solutions and Diversified Businesses
MEREDITH OVERVIEW
 
 
 
8
Online: Meredith
Women’s Network
Magazines: Home, Family,
Health & Well-being
Consumer Events
Custom Marketing
Database Marketing
Consumer Research
Broad Capabilities Across Media Platforms
Video Solutions
Brand Licensing
MEREDITH OVERVIEW
 
 
 
9
Agenda
§ Meredith Overview
§ Advertising Overview
§ Performance Improvement Plan
§ Financial Overview
 
 
 
10
 
2000
 
2007
 
2010
Forecast
Television
30%
34%
35%
Newspapers
29%
24%
18%
Radio
11%
9.4%
8.0%
Yellow Pages
8.8%
7.5%
6.6%
Consumer Magazines
6.8%
6.7%
6.0%
Trade Magazines
5.9%
5.3%
5.7%
Pure-Play Internet
3.6%
8.6%
14%
Out of Home
2.8%
3.7%
4.8%
Other
2.0%
1.0%
2.1%
TOTAL
100%
100%
100%

 Source: Veronis Suhler Stevenson -September 2008
Industry Advertising Mix
ADVERTISING OVERVIEW
 
 
 
11
National Media Advertising
 
Meredith (1)
Industry (2)
1st Half 09
(18)%
(12)%
3rd Quarter 09
(13)%
(22)%
4th Quarter 09
(11)%
(21)%
1st Quarter 10
(mid-single digits)%*
(?)%
ADVERTISING OVERVIEW
(1) Meredith data
(2) Publishers Information Bureau
* Forecast
 
 
 
12
Local Media Advertising
 
Meredith (1)
Industry (2)
1st Half 09
(20)%
(17)%
3rd Quarter 09
(30)%
(27)%
4th Quarter 09
(24)%
(25)%
1st Quarter 10
(mid-teens)%
(?)%
ADVERTISING OVERVIEW
(1) Meredith data
(2) Television Bureau of Advertising
* Forecast
 
 
 
13
Agenda
§ Meredith Overview
§ Advertising Overview
§ Performance Improvement Plan
 – Gain market share in core businesses
 – Increase consumer connection
 – Grow new revenue streams
 – Exercise disciplined expense and cash management
§ Financial Overview
STRATEGIC OVERVIEW
 
 
 
14
Growing National Market Share 
GAIN MARKET SHARE
Source: TNS Media Intelligence, 2009
Meredith’s Market Share
2008
2009
Women’s Service & Lifestyle
45%
51%
 
 
 
Parenthood
43%
44%
 
 
 
Healthy Lifestyle
15%
17%
 
 
 
Shelter
10%
13%
Fiscal 2009 Second-Half Issues
 
 
 
15
Agenda
STRATEGIC OVERVIEW
§ Meredith Overview
§ Current Advertising Update
§ Performance Improvement Plan
 – Gain market share in core businesses
 – Increase consumer connection
 – Grow new revenue streams
 – Exercise disciplined expense and cash management
§ Financial Overview
 
 
 
16
INCREASING CONSUMER CONNECTION
Powerful National Consumer Connection
Source: Spring 1999 & 2009 MRI Reports
* Traditional Home and Midwest Living
 
1999
2009
Better Homes and Gardens
34
39
Ladies’ Home Journal
16
12
Other*
5
9
Subtotal
55
60
 
 
 
Family Circle
22
20
Parents
12
16
American Baby
5
7
Fitness
6
6
More
NA
2
Subtotal
45
51
TOTAL
100
111
+11%
Readership in Millions
 
 
 
17
Strong Growth in Local Consumer Connection
Hartford: #1 in all newscasts
Nashville: #1 in all evening newscasts
Portland: #1 in morning news
Las Vegas: #1 in morning news
Atlanta: morning news doubled
Greenville: morning news doubled
Phoenix: Late news ratings up 40%
INCREASING CONSUMER CONNECTION
 
 
 
18
Strong Growth in Online Consumer Connection
Source: Meredith Internal Data
In Millions
Online Page Views
CAGR: 25%
33
205
50
100
150
200
INCREASING CONSUMER CONNECTION
 
 
 
19
Agenda
STRATEGIC OVERVIEW
§ Meredith Overview
§ Advertising Overview
§ Performance Improvement Plan
 – Gain market share in core businesses
 – Increase consumer connection
 – Grow new revenue streams
 – Exercise disciplined expense and cash management
§ Financial Overview
 
 
 
20
§ Integrated Marketing +13% to $175 million
§ Brand Licensing +14% to $25 million
§ Retransmission revenues doubled to $16 million
§ Video Solutions revenues rose more than 50%
§ Mobile marketing opportunity
New Revenue Stream Growth
GROW NEW REVENUE STREAMS
 
 
 
21
§ April 2006
§ January 2007
§ October 2007
§ June 2008
§ July 2009
Growing Array of Integrated Marketing Capabilities
GROW NEW REVENUE STREAMS
 
 
 
22
• Content strategy
• Quarterly magazines
• Multi-language e-mail campaigns
• Food photography
• 200+ videos produced in
 multiple languages
• Database Marketing strategy
• Campaign management
• Business intelligence
• Shopper purchase analytics
• Measurement
• Digital magazine
• iFood assistant
• Digital design
• Digital strategy
• Mobile strategy
• Mobile execution
• Online word of mouth
• Digital public relations
• Online intelligence
• Food blogging
GROW NEW REVENUE STREAMS
Meredith Integrated Marketing + Kraft CRM
 
 
 
23
Growing Presence in Brand Licensing
§ Walmart
 – Sales on track to meet expectations
 – SKUs doubled to more than 1,000 in 2009
 – Expanding to Canada this fall
§ Furniture
 – Launching a 5th BHG furniture line with
 Universal
 – 5-Star mattress program with Serta
§ International
 – 15+ relationships across 20 territories
 – Leading brands BHG and Parents in most
 populous countries: China and India
GROW NEW REVENUE STREAMS
 
 
 
24
$ in millions
GROW NEW REVENUE STREAMS
Increasing TV Retransmission Revenues
$4
$20+
$8
2006
(Actual)
2008
(Actual)
2010
(Estimate)
 
 
 
25
Meredith Video Solutions
§ 55 markets
§ 40+ percent of U.S.
§ Product integration growing
§ New VOD relationship with Mag Rack adds
 25 million more homes
§ 14 million Comcast homes
§ Discussions for carriage on Time
 Warner, Cablevision
§ Those 3 MSOs reach 90% of
 VOD cable homes
GROW NEW REVENUE STREAMS
Custom Video Production
§ Corporate clients: Kraft, Arm & Hammer, State Farm
 
 
 
26
§ The next big distribution platform
 
§ Opportunities in:
 – Business to consumer
 – Business to business
 
§ Clients increasingly asking for mobile marketing solutions
 
§ Relationship with The Hyperfactory
 – Clients include Toyota, Coke, Blackberry, Nike, Vodafone, Disney
 – Offices in New York, Los Angeles, New Zealand, India
GROW NEW REVENUE STREAMS
Mobile Opportunity
 
 
 
27
Agenda
§ Meredith Overview
§ Advertising Overview
§ Performance Improvement Plan
 – Gain market share across businesses
 – Increase consumer connection
 – Grow new revenue streams
 – Exercise disciplined cash expense management
§ Financial Overview
STRATEGIC OVERVIEW
 
 
 
28
Actions Taken
DISCIPLINED EXPENSE MANAGEMENT
§ Departmental efficiencies
§ Reductions in workforce
§ Strategic vendor sourcing initiative
§ Reduced capital expenditures
§ Aggressive working capital management
 
 
 
29
Historical Cash Flow From Operations
FINANCIAL OVERVIEW
12% CAGR
5% CAGR
 
 
 
30
Use of Cash: Fiscal 2000 through 2009
FINANCIAL OVERVIEW
 200
Stock Option Exercises
$2,000
Utilization of Cash
 100
Net Debt
 300
Capital Expenditures
600
Acquisitions, Net of Dispositions
$2,000
Available Cash
$1,800
Operating Cash Flow
 300
Dividends
$ in millions
$700
Share Repurchases

$1,000
SUBTOTAL
 
 
 
31
Calendar Year Dividends Per Share
FINANCIAL OVERVIEW
13% CAGR
 
 
 
32
 
Current
Capacity/Authorization
Debt Level
$380 million
Additional $470 million
Debt-to-EBITDA Ratio
1.8x
Less than 3.75x
Interest Coverage Ratio
10.9x
Greater than 2.75x
Average Cost of Funds (1)
5.4%
 

As of 6/30/09
(1) After $75 million private placement dated 7/13/09
Financial Metrics
FINANCIAL OVERVIEW
 
 
 
33
$202 trailing 12 EBITDA
$202 trailing 12 EBITDA
$1.6B total cap
$1.2B market cap
§ Current dividend yield
 
§ EPS multiple:
 
§ EBITDA multiple
 to market capitalization:
 
§ EBITDA multiple
 to total capitalization:
$2.03 trailing 12 EPS
$27.56 share price
Current Valuation Metrics
• As of June 30, 2009 using trailing 4 quarters actual results, excluding discontinued operations and special items.
• Dividend data uses current dividend of $0.225 per quarter.
• Share price data is market close on Sept. 11, 2009.
FINANCIAL OVERVIEW
$0.90 dividend
$27.56 share price
3.3%
13.6x
6.1x
8.0x
 
 
 
34
Summary
§ Vibrant and profitable media assets and brands
§ Growing market share
§ Wide array of new revenue stream development
§ Strong financial foundation
 
 
 
Roth Media/Software
Conference
New York, Sept. 16, 2009