Attached files
| file | filename |
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| 8-K - PRESENTATION AT CREDIT SUISSE CONF ON 3/8/10 - MEREDITH CORP | form8kcs.htm |
2010 Convergence Media Conference
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.
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.
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.
2
Broad Media and Marketing Footprint
National Media
Brands
Brands
Meredith
Integrated
Marketing
Integrated
Marketing
Local Media
Brands
Brands
Revenues:
$960 million
Revenues:
$175 million
Revenues:
$275 million
Meredith Overview
3
Five Things to Know About Meredith
1. The largest media company serving U.S. women
• Reach 75 million women who make the majority
of household
purchasing decisions, regardless of economic climate
purchasing decisions, regardless of economic climate
4
Agenda
Her Family
Her Home
Her Self
Delivering The Largest Adult Female Audience
Largest Media Company Serving Women
5
2005
2006
2007
2008
2009
Strengthening Reach to Young Adults and Families
|
|
2004 |
2009 |
|
Advertising Market Share |
10% |
28% |
|
Online Unique Visitors |
<1M |
5M |
Largest Media Company Serving Women
6
Five Things to Know About Meredith
1. The largest media company serving U.S. women
• Magazines, Internet, Television, Retail, Mobile
7
Growing Readership
Source: Fall 1999 & 2009 MRI Reports
* Traditional Home and Midwest Living
|
|
1999 |
2009 |
|
Better Homes and Gardens |
33 |
39 |
|
Family Circle |
22 |
20 |
|
Parents |
12 |
15 |
|
Ladies’ Home Journal |
15 |
12 |
|
Fitness |
6 |
6 |
|
American Baby |
5 |
7 |
|
More |
NA |
2 |
|
Other* |
4 |
8 |
|
TOTAL |
97 |
109 |
+12%
Readership in Millions
Strong Consumer Connection
8
Growing Online Consumer Connection
Source: Meredith, in millions
20
Strong Consumer Connection
National Media Group Average Monthly Unique Visitors
33% CAGR
9
12
9
7
2
220
260
270
380
400
Strong Consumer Connection
Increased Hours of Locally Produced News Programming
Morning news hours up 40% over 5 years
Adding 4 p.m. news across group
Building 24-hour multi-platform news culture
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Growing Presence in Brand Licensing
– Sales meeting expectations
– SKUs tripled to more than 1,500 in Calendar2009
– Introduced line of paint
– Expanded to Canada
Garden
Interior decor
Canada
Strong Consumer Connection
Paint
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Adapting Content for Mobile Platform
• Platform offers scale opportunity
- Business to Business
- Business to Consumer
• Multiple revenue stream opportunity
- Advertising
- Applications
• New mobile sites for Better Homes
and Gardens, Parents and Fitness in
April 2010
and Gardens, Parents and Fitness in
April 2010
Strong Consumer Connection
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Five Things to Know About Meredith
1. The largest media company serving U.S. women
• Gaining share on improving advertising revenue
performance
13
Source: Publishers Information Bureau
Magazine Advertising Revenue Performance
Meredith Outperforming Industry
14
Calendar 2009
Meredith
6%
Time, Inc.
(9)%
Martha Stewart
(12)%
Rodale
(12)%
Hearst
(13)%
Hachette
(13)%
Industry
(18)%
Conde Nast
(24)%
Online: Meredith Women’s
Network
Network
Magazines: Home, Family,
Health & Well-being
Health & Well-being
Consumer Events
Custom Marketing
Database Marketing
Video Studios
Brand Licensing
Mobile
Marketing
Marketing
15
Emphasize 360° Marketing Approach
Meredith Outperforming Industry
16
Case Study: Maybelline Multi-Platform Campaign
Meredith Outperforming Industry
16
|
Trailing 4 quarters |
Meredith
Internal |
Industry
TvB |
|
2nd Qtr C09 |
(25)% |
(25)% |
|
3rd Qtr C09 |
(13)% |
(19)% |
|
4th Qtr C09 |
5% |
4% |
|
1st Qtr C10* |
Up mid-teens |
N/A |
Source: Meredith and Television Bureau of Advertising
Spot only revenue
*Forecast
17
Television Advertising Revenue Performance
Meredith Outperforming Industry
Turning static newspaper ads into video
- Currently running in half of markets
- Initial sales conversions promising
Selling on air and online obituaries
- Newspapers no longer publishing daily
- Syndicating format to other station groups
Real Estate
- Testing different services
- Planning group roll-out
Creating New Opportunities in Local Media
Meredith Outperforming Industry
18
Election Year Outlook Bright
19
Governor races:
• Open seats
in CT, GA, KS, MI, OR, SC, TN,
• Incumbents facing tough races in AZ, MA, NV
Senate races:
• Open seats
in CT, KS, MO
• Incumbents facing tough races in AZ, NC, NV
House races:
• Open seats
in AZ, KS, TN, WA
• Incumbents facing tough races in CT, KS, MO,
NV
Political Advertising
Five Things to Know About Meredith
1. The largest media company serving U.S. women
• Revenues more than doubled in five years
20
21
Meredith Integrated Marketing
Marketing Services Industry Spending Growing
Forecast
$ in billions; Source: VSS September 2009
• April 2006
• January 2007
• January 2007
• October 2007
• June 2008
• July 2009
Assembling Array of Custom Marketing Capabilities
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Meredith Integrated Marketing
Database
Mobile
Digital
Word of
mouth
mouth
Healthcare
Provide “One-Stop Shopping” for Clients
23
Meredith Integrated Marketing
DATABASE
•Profiling
•Customer Acquisition
•Data mining
•Segmentation
SOCIAL MEDIA
• Blogger outreach
• Message board seeding
• Widget development
• Content Syndication
&
DIGITAL
• Website Development and
Maintenance
Maintenance
• Email Marketing and Digital
CRM Execution
CRM Execution
• Search Engine Optimization
CRM STRATEGY
•Content strategy and
program management
program management
•Seminar development
•Nestlé staff training
CONSUMER INSIGHTS
•Online/offline panels
•Proprietary research
•Secondary research
•Buzz monitoring
DIRECT MARKETING
• Creative development
• Custom photography
• Production
VIDEO PRODUCTION
•DVD production
•Viral video
development and
syndication
development and
syndication
Case Study: Nestlé & Meredith Integrated Marketing
Meredith Integrated Marketing
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Delivering Strong Revenue Growth Over Time
Custom Publishing
$93 million
CRM/digital
$83 million
FY09: $175 Million
Custom
Publishing
Publishing
$70 Million
CRM
$5 Million
25
Meredith Integrated Marketing
Five Things to Know About Meredith
1. The largest media company serving U.S. women
• Strong cash flow, low debt and consistent dividend
growth
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Consistently Generate Strong Cash Flow
12% CAGR
5% CAGR
$ in millions; fiscal years
27
Strong Financial Management
$131
$160
$163
$171
$194
$211
$256
$181
$ in millions; fiscal years
Assumes revolving facilities are renewed upon
expiration.
Assumes revolving facilities are renewed upon
expiration.
Consistent Debt Reduction
$130
Illustration of Meredith’s debt balance
assuming current maturity schedule
assuming current maturity schedule
Strong Financial Management
28
$305
$205
$485
$155
$255
$380
Track Record of Dividend Increases
12% CAGR
Strong Financial Management
29
Calendar years
Driving Down Costs Across Operations
Strategic sourcing implemented companywide
Rationalization across portfolio
10% reduction in headcount
|
|
Q109* |
Q209* |
Q309* |
Q409* |
|
National Media |
(7.2%) |
(8.1%) |
(10.3%) |
(9.6%) |
|
Local Media |
(5.0%) |
(5.2%) |
(2.2%) |
(2.4%) |
|
Total |
(6.4%) |
(7.3%) |
(7.7%) |
(7.0%) |
Strong Financial Management
30
* = Calendar 2009
31
Sequential Advertising Revenue Improvement
Strong Financial Management
|
|
National Media |
Local Media |
|
Fiscal 2009: |
|
|
|
4th quarter |
(11%) |
(25%) |
|
Fiscal 2010: |
|
|
|
1st quarter |
(5%) |
(13%) |
|
2nd quarter |
(3.5%) |
+4% |
|
3rd quarter (E) |
+3% |
Up mid teens |
E = Estimate
Third Quarter and Full Year 2010
E = Estimate
|
|
Jan. 2010E |
March 2010E |
|
National Media advertising revenue |
Flat to up slightly |
3% |
|
Local Media advertising revenue |
Up mid-teens |
Up mid-teens |
|
Q310 Earnings per share |
$0.55 - $0.60 |
$0.65 - $0.70 |
|
FY10 Earnings per share |
$1.90 - $2.05 |
$2.05 - $2.15 |
Financial Outlook
32
Five Things to Know About Meredith
1. The largest media company serving U.S. women
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