Iac Inc. · NASDAQ:IAC
Iac — IAC/InterActiveCorp — Merger or Acquisition (October 2021)
20 slides from Iac's merger presentation, Oct 7, 2021
Slide 1: Creating a Digital Publishing Leader
1 Creating a Digital Publishing Leader October 2021
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward - Looking Information 2 This presentation may contain “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation that are forward - looking include, but are not limited to, statemen
Slide 3: Today's Presenters
Neil Vogel Chief Executive Officer Dotdash Joey Levin Chief Executive Officer IAC Tim Quinn Chief Financial Officer Dotdash Today’s Presenters 3
Slide 4: Transaction Overview
IAC’s Dotdash to acquire Meredith Holdings Corporation, comprised of Meredith Corporation’s National Media Group and its corporate operations (“NMG”), following its spin - off from Meredith Corporation (“MDP”), in an all - cash transaction Transaction Overview 4 Key Terms ● $42.18 per share in cash
Slide 5: The Modern Digital Publisher – Intent-Driven Premium Content
The Modern Digital Publisher – Intent - Driven Premium Content 5 95% of U.S. women reached every month 175 Million U.S. online consumers reached each month 70%+ of pro forma 2021 Adj EBITDA expected from Digital $450+ Million Pro Forma Adj Digital EBITDA in 2023 TOP 10 U.S. Internet property 560 Mil
Slide 6: World Class Brand Portfolio
World Class Brand Portfolio 6 HOME FOOD HEALTH BEAUTY & STYLE LIFESTYLE FINANCE ENTERTAINMENT 96 Million 144 Million Monthly Audience Monthly Audience Source: Comscore July ‘21
Slide 7: Dotdash Meredith is a Premium Content Powerhouse
Dotdash Meredith is a Premium Content Powerhouse 7 Premium Site Speed, Clean Usable Design, Limited Respectful Ads 100+ editorial and design awards over the past year Comprehensive product reviews supported by 50,000+ sq. ft. of testing facilities One million+ articles: text, video, and visual asset
Slide 8: Intent-Driven Audiences Across the Most Valuable Verticals
Intent - Driven Audiences Across the Most Valuable Verticals 8 Nice to Know Social Media 8 Want to Know News, Sports, Entertainment Need to Know Make Decisions, Pursue a Passion, Take Action
Slide 9: Brand-Driven Intent Audiences are the Most Valuable
Brand - Driven Intent Audiences are the Most Valuable 9 Growing Diverse Revenue World Class Brands Intent - Driven Audiences › Contextual Relevance › Do Not Need Personal Information › Superior Performance › Advertising › Commerce › Performance Marketing › Consumer Revenue › Best Content › Fastest S
Slide 10: Unlocking Growth: Digital Revenue per Visit
0 25 50 75 100 Advertising Commerce and Performance Marketing Meredith Dotdash Unlocking Growth 10 Digital Revenue per Visit, Indexed LTM ended June 30, 2021
Slide 11: Print Strategy – Assets in Support of Digital
Print Strategy – Assets in Support of Digital 11 • Meredith is the largest magazine publisher in the U.S. • Branding benefit and current cash flow from the portfolio • Magazine ad revenues are experiencing secular declines and accelerated through COVID; digital ad sales surpassed print in ‘21 • Cont
Slide 12: Dotdash and Meredith Historical Financials
Dotdash and Meredith Historical Financials $525 $593 $656 $738 $1,839 $1,787 $1,435 $1,372 $2,356 $2,365 $2,071 $2,109 2018 2019 2020 LTM 1 12 Digital Print Digital CAGR: 15% CAGR: 8% 6,526 6,742 7,792 8,002 2018 2019 2020 LTM 1 $363 $422 $375 $358 2018 2019 2020 LTM 1 Revenue ($ millions) Adj. EBIT
Slide 13: Pro Forma Digital KPIs – Dotdash Meredith
Pro Forma Digital KPIs – Dotdash Meredith 13 $656 $761 $870 $1,002 2018 2019 2020 LTM Revenue ($ millions) 9.486 10,449 11,978 12,502 2018 2019 2020 LTM Total Sessions (millions) 1 1 CAGR: 19% CAGR: 14% (1) Financials based on LTM ended June 30, 2021
Slide 14: Revenue Diversity – Providing Stability and Enabling Opportunity
Revenue Diversity – Providing Stability and Enabling Opportunity 14 27% 20% 20% 14% 10% 5% 4% Food & Beverage Entertainment Home Health Finance Lifestyle Beauty Digital Revenue by Segment Pro Forma Dotdash Meredith Digital Revenue by Type Pro Forma Dotdash Meredith 41% 24% 35% Performance Marketing
Slide 15: Growing U.S. Digital Ad Market
Growing U.S. Digital Ad Market 15 Source: eMarketer $ in billions Total U.S. Ad Spend $ 242 $ 396 0 50 100 150 200 250 300 350 400 2020 2025 CAGR: 9% Total U.S Digital Ad Spend $ 152 $ 304 0 50 100 150 200 250 300 350 2020 2025 CAGR: 15%
Slide 16: Creating Value
Creating Value 16 Run the Dotdash playbook — superior content, respectful advertising, best UI/UX — across the Meredith brands 15 - 20% Annual Digital Growth Manage Print to Support Digital Up to $50M in Savings Year 1 Capture operating synergies Targeting $450M of combined Adjusted Digital EBITDA i
Slide 17: IAC Going Forward
IAC Going Forward 17 • Diverse portfolio of premium internet assets • Industry leading businesses in three large categories (Home Services, Digital Publishing, and Care) • Significant growth potential in rest of portfolio • Optimizing capital allocation and enhancing strategic flexibility Angi Publi
Slide 18: IAC's Track Record of Creating Value
10 Public Companies and $95 Billion in Value Created for Shareholders IAC’s Track Record of Creating Value 18 S&P IAC $13.09 $40.84 10.4% CAGR 15.3% CAGR $1.00 Invested when Barry Diller took control is today worth $- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 1995 1997 1999 2001 2003 2005 2007 2009 201
Slide 19: Adjusted EBITDA Reconciliation – Dotdash
Adjusted EBITDA Reconciliation – Dotdash 19 (a) Adjusted EBITDA is defined as operating income excluding: (1) stock - based compensation expense; (2) depreciation; (3) acquisitio n - related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets,
Slide 20: Adjusted EBITDA Reconciliation – Meredith National Media Group
Adjusted EBITDA Reconciliation – Meredith National Media Group 20 (a) Adjusted EBITDA is defined as operating income excluding: (1) stock - based compensation expense; (2) depreciation; (3) acquisitio n - related items consisting of (i) amortization of intangible assets and impairments of goodwill a
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