New York Times Company (the) · NYSE:NYT
New York Times Company (the) — The New York Times Company — Investor Day (June 2022)
163 slides from New York Times Company (the)'s investor day presentation, Jun 13, 2022
Slide 1: Investor Day
Investor Day JUNE 13, 2022
Slide 2: Investor Day Agenda
I N V E STO R D AY A G E N D A Strategic Context Product-Driven Growth The Athletic and the Opportunity in Sports Break (25 minutes) Key Subscription Growth Levers Financial Overview Q&A Session
Slide 3: Safe Harbor
SAFE HARBOR Forward-Looking Statements Statements in this presentation, including statements relating to our goals, expectations, beliefs, intentions and strategies regarding our potential future performance and the key drivers thereof; our potential market; our subscriber base and ability to grow i
Slide 4: Strategic Context
Strategic Context JUNE 13, 2022
Slide 5: Meredith Kopit Levien
PRESIDENT AND CHIEF EXECUTIVE OFFICER Meredith Kopit Levien
Slide 6: Opinion and journalism examples
OPINION I’m a Trans Runner, and You Might Not Like What I Have to Say By Lindsay Crouse, Taige Jensen and Adam Wolffbrandt Aug. 12, 2021 Using the Wisdom of Dance to Find Our Way Back to Our Bodies By Gia Kourlas July 8, 2021 How a U.S. Drone Strike Killed the Wrong Person By Christoph Koettl, Evan
Slide 7: Today's Speakers
THE TEAM Today’s MEREDITH KOPIT LEVIEN PRESIDENT A.G. SULZBERGER CHAIRMAN AND PUBLISHER ALEX HARDIMAN CHIEF PRODUCT OFFICER Speakers AND CHIEF EXECUTIVE OFFICER DAVID PERPICH H A N N A H YA N G ROLAND A. CAPUTO PUBLISHER OF THE CHIEF GROWTH CHIEF FINANCIAL ATHLETIC AND OFFICER OFFICER WIRECUTTER Joi
Slide 8: Mission: We seek the truth and help people understand the world
MISSION We seek the truth and help people understand the world. This mission is rooted in our belief that great journalism has the power to make each reader’s life richer and more fulfilling, and all of society stronger and more just.
Slide 9: Strong execution against our strategy to be digital-first (2016)
T R A N S FO R M AT I O N Strong execution against our strategy to be digital-first, subscription-first Digital Subscriptions Digital % of Sub + Adv Revenues Sub Revenue % of Total Adj. Operating Profit (AOP)1 2016 1.9m 30% 57% $230m Two products Minority of business, unclear future Strong base, roo
Slide 10: Strong execution against our strategy to be digital-first (2021)
T R A N S FO R M AT I O N Strong execution against our strategy to be digital-first, subscription-first Digital Subscriptions Digital % of Sub + Adv Revenues Sub Revenue % of Total Adj. Operating Profit (AOP)1 8.0m 58% 66% $335m 2021 9.2m with The Athletic,2 Majority digital business, Majority digit
Slide 11: Proven track record of delivering on targets
EXECUTION Proven track record of delivering on targets Historical Targets Date Set Result Double digital revenue by 2020 2015 Achieved in 2019 1 year early 10 million subscriptions by 2025 2019 Achieved in early 2022 3 years early
Slide 12: Three underlying trends suggest value of digital journalism will increase
O P E R AT I N G C O N T E X T Three underlying trends suggest the market value of high quality digital journalism will continue to increase Educated population has grown Willingness to pay for Digital Next generation favors Digital News consumption News has grown 88.3 18–29 77% Higher Degree Bachel
Slide 13: Become the essential digital subscription
OPPORTUNITY Become the essential digital subscription for every curious, English-speaking person seeking to understand and engage with the world. Be the best general interest news destination in the world Become even more valuable to more people by helping them make the most of their lives and engag
Slide 14: 15 million subscribers by year-end 2027
M I DT E R M TA R G E T S 15 million subscribers by year-end 2027 Midterm Adjusted Operating Profit CAGR of 9-12% Attractive, sustainable revenue growth Increased leverage in the digital business Improvement in consolidated margins starting in 2023 Expect to return 25-50% of Free Cash Flow to shareh
Slide 15: Tremendous potential to attract and retain a larger subscriber base
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y Tremendous potential to attract and retain a larger subscriber base with a high-quality portfolio of leading journalism and lifestyle products driven by a competitively advantaged digital model. 1 2 3 4 5 High quality portfolio Market le
Slide 16: Trusted, high-quality portfolio of leading journalism
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 1. Trusted, high-quality portfolio of leading journalism and lifestyle subscription products THE GAMES COOKING WIRECUTTER AT H L E T I C NEWS 50–100+ million WAU Nearly 50 million 6.9 million subscriptions Weekly active users to lifestyl
Slide 17: Trusted, high-quality portfolio of leading journalism
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 1. Trusted, high-quality portfolio of leading journalism and lifestyle subscription products NEWS 50–100+ million WAU THE GAMES COOKING WIRECUTTER 6.9 million subscriptions AT H L E T I C (across News, All Access, Print) News WAU data re
Slide 18: The Journalistic Mission
The Journalistic Mission JUNE 13, 2022
Slide 19: A. G. Sulzberger
CHAIRMAN AND PUBLISHER A. G. Sulzberger
Slide 20: Live Updates: Britain Offers Long-Range Weapons to Ukraine
Live Updates: Britain Offers Long-Range Weapons to Ukraine, as Russian Artillery Hammers East The New York Ei RUSSIA BOMBARDS KYIV IN RENEWED ASSAULT Citizens Take Up Arms in Ukraine’ Besieged Capital The New Mork Cimes = RUSSIA ATTACKS AS PUTIN WARNS WORLD; BIDEN VOWS TO HOLD HIM ACCOUNTABLE
Slide 21: Beat reporting on important subjects and storylines
Beat reporting on important subjects and storylines
Slide 22: Breaking news that doesn't sacrifice accuracy or context
Breaking news that doesn’t sacrifice accuracy or context
Slide 23: Resource-intensive journalistic projects
Resource-intensive journalistic projects that demand attention
Slide 24: Commentary and criticism that help develop and challenge views
Commentary and criticism that help develop and challenge views
Slide 25: The Woman on the Bridge
The Woman on the Bridge By Ellen Barry Nov. 28, 2021 September Dawn Bottoms for The New York Times
Slide 26: Q Art & Design
Q ART & DESIGN CLOSE READ A Messy Table, a Map of the World By Jason Fz Ehe New York Eimes
Slide 27: Photography credits
Top left Erin Schaff/The New York Times. Top right Tyler Hicks/The New York Times. Bottom left Edmund D. Fountain for The New York Times. Bottom right Laetitia Vancon for The New York Times
Slide 28: Jeremy M. Lange for The New York Times
Jeremy M. Lange for The New York Times
Slide 29: 2
2
Slide 30: NiceWhite
NiceWhite cy
Slide 31: How a U.S. Drone Strike Killed the Wrong Person
How a U.S. Drone Strike Killed the Wrong Person By Christoph Koettl, Evan Hill, Matthieu Aikins, Eric Schmitt, Ainara Tiefenthäler and Drew Jordan Sept. 10, 2021
Slide 32: Covid
Covid
Slide 33: Laetitia Vancon for The New York Times
Laetitia Vancon for The New York Times
Slide 34: Covid tracking coverage
‘See How Vaccinations Are Going in ‘Your Com ‘Track Coronavirus Cases in Places Important to You Coronavirus in the U.S. Latest Map and Case Count New reported cases te ofthe virus
Slide 35: As Virus Resurges in Africa, Doctors Fear the Worst
As Virus Resurges in Africa, Doctors The U.S. Is Getting a Crash Course in Fear the Worst Is Yet to Come Scientific Uncertainty By Sheri Fink By Apoorva Mandavilli Nov. 23, 2021 Aug. 22, 2021 Samantha Reinders for The New York Times Spencer Platt/Getty Images
Slide 36: See How Covid-19 Has Tested the Limits of Hospitals
The New Yorke imes wa See How Covid-19 Has Tested the Limits of Hospitals and Staff In hospitals, inte I patients with ite re pneu ces Ehe New ork Cimes === JOB LOSSES SOAR; U.S. VIRUS CASES TOP WORLD New Data Shows Siagsring Tall ‘of Oxtbreak Under Trump, Online Cl ata Brookbn Hospital, = Unfild Po
Slide 37: C.D.C. Study Raises Questions About Agency's Isolation Guidelines
C.D.C. Study Raises Questions About Plastic Dividers and Masks All Day: What Agency’s Isolation Guidelines Teaching in a Pandemic Looks Like By Emily Anthes By Erica L. Green Feb. 25, 2022 Nov. 28, 2020 Spencer Platt/Getty Images Rosem Morton for The New York Times
Slide 38: How the World Missed Covid-19's Silent Spread
HOW THE WORLD MISSED COVID-19’S Vaccine Makers Keep Safety Details Beneath a Covid Vaccine Debacle, 30 SILENT SPREAD Quiet, Alarming Scientists Years of Government Culpability By Matt Apuzzo, Selam Gebrekidan and David D. Kirkpatrick By Katie Thomas By Chris Hamby and Sheryl Gay Stolberg June 27, 20
Slide 39: Obituary from L'Eco di Bergamo
Obituary from L’Eco di Bergamo
Slide 40: China Wanted to Show Off Its Vaccines. It's Backfiring.
China Wanted to Show Off Its Vaccines. It’s Backfiring. By Sui-Lee Wee Jan. 25 2021 Tyler Hicks/The New York Times Victor Moriyama for The New York Times
Slide 41: Wash Our Hands? Some People Can't Wash Their Kids
‘Wash Our Hands? Some People Can’t Wisconsin Medical Examiner Prepared Wash Their Kids for a Week.’ for the Worst. It Wasn’t Enough. By Evan Hill and Yousur Al-Hlou By Julie Bosman March 19, 2020 Nov. 20, 2020 Ivor Prickett for The New York Times Erinn Springer for The New York Times
Slide 42: How Millions of Lives Might Have Been Saved From Covid-19
OPINION OPINION How Millions of Lives Might Have The America Been Saved From Covid-19 We Need By Zeynep Tufekci By The Editorial Board March 11, 2022 April 9, 2020 Illustration by The New York Times
Slide 43: Stocking Your Pantry, the Smart Way
Stocking Your Pantry, How to Wash the Smart Way Your Hands By Melissa Clark By The New York Times March 6, 2020 March 13, 2020 Julia Gartland for The New York Times. Prop Stylist: Kristine Trevino. Jonah Kessel
Slide 44: F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Plan
F.A.Q. on Stimulus Checks, Unemployment Answers to All Your Questions About and the Coronavirus Plan Getting Vaccinated for Covid-19 By Tara Siegel Bernard and Ron Lieber By The New York Times June 2, 2021 October 18, 2021 Timo Lenzen Robert Neubecker
Slide 45: News Weekly Average Users
News Weekly Average Users 2020 2019
Slide 46: What Do The Protectors of Congo's Peatlands Get In Return?
What Do The Protectors of Congo’s Peatlands Get In Return? By Ruth Maclean and Caleb Kabanda Photography by Nanna Heitman Feb. 21, 2022 Nanna Heitmann for The New York Times
Slide 47: 2022 Oscars: See the Stars on the Red Carpet
2022 Oscars: See the Stars on the Red Carpet the 94th Academ
Slide 48: New Evidence Shows How Russian Soldiers Executed Men in Bucha
Finbarr O'Reilly for The New York Times New Evidence Shows How Russian Soldiers Executed Men in Bucha By Yousur Al-Hlou, Masha Froliak, Evan Hill, Malachy Browne and David Botti May 19, 2022 Brendan Hoffman for the New York Times Daniel Berehulak for The New York Times
Slide 49: Cultural and Lifestyle Coverage
Cultural and Lifestyle Coverage
Slide 50: Kevin Durant and the Greatest Basketball Team of All Time
Our Film Critics Discuss Kevin Durant and (Possibly) the Greatest the Future of Movies Basketball Team of All Time By Manohla Dargis and A.O. Scott By Sam Anderson Sept. 14, 2021 June 2, 2021 Al Pacino on ‘The Godfather’: ‘It’s Taken Me a Lifetime to Accept It and Move On’ By Dave Itzkoff March 9, 2
Slide 51: Kevin Durant and the Greatest Basketball Team of All Time
Our Film Critics Discuss Kevin Durant and (Possibly) the Greatest the Future of Movies Basketball Team of All Time By Manohla Dargis and A.O. Scott By Sam Anderson Sept. 14, 2021 June 2, 2021 Al Pacino on ‘The Godfather’: ‘It’s Taken Me a Lifetime to Accept It and Move On’ By Dave Itzkoff March 9, 2
Slide 52: Review: In 'Sanctuary City,' Slamming the Door on the Dream
Review: In ‘Sanctuary City,’ Slamming the Door on the Dream By Jesse Green Sept. 21, 2021 Naked and Aflame or Considering Death, Munch Rarely Screamed By Jason Farago Nov. 30, 2017 Parsing American Style Sept. 10, 2021
Slide 53: Review: In 'Sanctuary City,' Slamming the Door on the Dream
Review: In ‘Sanctuary City,’ Slamming the Door on the Dream By Jesse Green Sept. 21, 2021 Naked and Aflame or Considering Death, Munch Rarely Screamed By Jason Farago Nov. 30, 2017 Parsing American Style Sept. 10, 2021
Slide 54: Taqueria Ramírez Brings a Mexico City Specialty to Brooklyn
Taqueria Ramírez Brings a Mexico City Specialty to Brooklyn By Pete Wells Jan. 24, 2022 Perfecting Neapolitan Pizza in Los Angeles, With Help From Tokyo By Tejal Rao April 4, 2022 A Memoir of Friendship and Death in a Vacation Idyll By Tom Perrotta June 4, 2022
Slide 55: Taqueria Ramírez Brings a Mexico City Specialty to Brooklyn
Taqueria Ramírez Brings a Mexico City Specialty to Brooklyn By Pete Wells Jan. 24, 2022 Perfecting Neapolitan Pizza in Los Angeles, With Help From Tokyo By Tejal Rao April 4, 2022 A Memoir of Friendship and Death in a Vacation Idyll By Tom Perrotta June 4, 2022
Slide 56: The Woman on the Bridge
The Woman on the Bridge By Ellen Barry Nov. 28, 2021
Slide 57: Our Film Critics Discuss the Future of Movies
Our Film Critics Discuss the Future of Movies By Manohla Dargis and A.O. Scott Sept. 14, 2021
Slide 58: A Supreme Court in Disarray After an Extraordinary Breach
A Supreme Court in Disarray After an The Rationing of a Last-Resort How Long Can the Afghan Security Forces Extraordinary Breach Covid Treatment Last on Their Own? By Adam Liptak By Sheri Fink By Thomas Gibbons-Neff, Najim Rahim and C. J. Chivers May 3, 2022 July 12, 2021 April 28, 2021 Isadora Koso
Slide 59: Analysis: Biden's meeting with Putin
Analysis: Biden’s meeting with Putin presented a strained relationship beneath a veneer of civil discourse By Peter Baker June 17, 2021 Photographs by Doug Mills/The New York Times
Slide 60: Photojournalism from around the world
Bogotá, Colombia. Federico Rios for The New York Times Kamloops, British Columbia Amber Bracken for The New York Times Ukraine Brendan Hoffman for The New York Times Washington D.C. Todd Heisler/The New York Times Ukraine Brendan Hoffman for The New York Times India Atul Loke for The New York Times
Slide 61: How the Taliban Outlasted a Superpower
How the Taliban Outlasted a Superpower: Tenacity and Carnage By Mujib Mashal May 26, 2020 Photographs by Jim Huylebroek for The New York Times
Slide 62: Photographs by Tyler Hicks/The New York Times
Photographs by Tyler Hicks/The New York Times
Slide 63: Harvey Weinstein Paid Off Sexual Harassment Accusers
Harvey Weinstein Paid Off Sexual Harassment Accusers for Decades By Jodi Kantor and Megan Twohey Oct. 5, 2017 Jean Baptiste LaCroix/Agence France-Presse — Getty Images
Slide 64: How a U.S. Drone Strike Killed the Wrong Person
How a U.S. Drone Strike Killed the Wrong Person Jim Huylebroek for The New York Times By Christoph Koettl, Evan Hill, Matthieu Aikins, Eric Schmitt, Ainara Tiefenthäler and Drew Jordan Sept. 10, 2021
Slide 65: Pentagon acknowledges Aug. 29 drone strike was a tragic mistake
Pentagon acknowledges Aug. 29 drone strike in Afghanistan was a tragic mistake that killed 10 civilians. By Eric Schmitt and Helene Cooper Sept. 17, 2021
Slide 66: Ethical Journalism
The New ork Gimes Ethical Journalism eee etermens establish a vision for how our report can convey our values and ensure accuracy. Read on for more from Cliff Levy, Matt Erieson, Alex Hardiman and Emily Withrow ‘A Handbook of Values and Practices for the News and Opinion Departments Jouratite Work O
Slide 67: Protecting Our Journalists
General By Threat Response Team ver the last few years, our journalists have faced an alarmi Protecting Our Journalists Protecting our journalists and threats line attacks, These situations have been stressful and frightening for our and ability to do thelr intended to m online harassment Explaining
Slide 68: Slide 68
Slide 69: Meredith Kopit Levien
PRESIDENT AND CHIEF EXECUTIVE OFFICER Meredith Kopit Levien
Slide 70: Highly attractive TAM and significant penetration runway
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 2. Highly attractive TAM and significant penetration runway 135m User data Survey data 50-100+ million weekly active users At least 135 million worldwide paying or for our news product willing to pay for English-language Open to New York
Slide 71: Competitively advantaged model for audience penetration
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 3. Competitively advantaged model for audience penetration Subscription starts, 2021 Nov. 13 Jan. 6 Aug. 29 UN Capitol Afghanistan Oct. Climate Mid-Dec. Riot withdrawal Frances Summit Omicron Jan. 20 starts Haugen surge Jun. 24 Biden's t
Slide 72: Attractive unit economics with numerous levers for value creation
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 3. Attractive unit economics with numerous levers for value creation Unrivaled audience Product driven Efficient conversion Customer lifetime engine engagement and retention monetization 2,500+ 135+ million >80% 2.6 million journalists a
Slide 73: Multiple, synergistic revenue streams
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 3. Multiple, synergistic revenue streams Digital Advertising Revenue, 2016 vs. 2021 Our Digital Ad Revenue grew by $100 million in the last 5 years. Key drivers include: First-party data: Ad products that draft off of the growth of our r
Slide 74: Next Phase of Digitally Focused Strategy
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 4. Next Phase of Digitally Focused Strategy Designed to Drive Attractive Revenue and AOP Growth Midterm Targets: Adjusted Operating Profit CAGR of 9-12% Attractive, sustainable Increased leverage in the Improvement in consolidated revenu
Slide 75: Cash generative model and disciplined capital return
LO N G -T E R M V A L U E C R E AT I O N O P P O R T U N I T Y 5. Cash generative model and disciplined capital return Strong Free Cash Flow Capital allocation generation priorities: Free Cash Flow growth expected to Prioritizing organic investment. Expect to closely align with adjusted operating re
Slide 76: Key Takeaways
Key Takeaways What we’ve built can’t This team has executed successfully There is growing demand and be replicated to transform the business to a willingness to pay for our connected digital-first, subscription-first leader portfolio of complementary products Our runway to attract more We have a lar
Slide 77: Product-Driven Growth
Product-Driven Growth JUNE 13, 2022
Slide 78: Alex Hardiman
CHIEF PRODUCT OFFICER Alex Hardiman
Slide 79: Product engagement is key to subscriber growth and retention
Product engagement is key to both subscriber growth and retention Our audience and Product engagement as a growth Product engagement as a market opportunity driver within each product growth driver across our Bundle
Slide 80: Our audience and market opportunity
Our audience and market opportunity
Slide 81: Our TAM is made up of educated, curious people
OUR AUDIENCE AND MARKET OPPORTUNITY Our TAM is made up of educated, curious people interested in multiple categories where the Times has been investing in product innovation 135M Audience traits suggested from survey data News: The largest single TAM category is an audience of educated, curious peop
Slide 82: We're leveraging our unique competitive advantages
OUR AUDIENCE AND MARKET OPPORTUNITY We’re leveraging our unique competitive advantages to drive more engagement and value within our products THE GAMES COOKING WIRECUTTER AT H L E T I C NEWS Nearly 50 million 50–100+ million WAU across lifestyle products WAU 6.9 million subscriptions 3+ million (acr
Slide 83: Within news, our unmatched quality, depth and breadth
OUR AUDIENCE AND MARKET OPPORTUNITY Within news, our unmatched quality, depth and breadth of coverage meets our audience’s most important news needs IMPORTANT TOPICS BREAKING NEWS SIGNATURE ENTERPRISE INTERPRETATION KNOWLEDGABLE C AU G H T- U P THOUGHTFUL CONNECTED
Slide 84: Beyond news, we offer deep, engaging coverage
OUR AUDIENCE AND MARKET OPPORTUNITY Beyond news, we offer deep, engaging coverage of lifestyle areas to satisfy our audience’s life needs C U LT U R E & L I F E S T Y L E GUIDANCE & SERVICE GAMES SPORTS JOURNALISM ENRICHED IMPROVED C AU G H T- U P GUIDED
Slide 85: Engagement as a Growth Driver Within Products
Engagement as a Growth Driver Within Products
Slide 86: Product engagement drives subscribers to pay and stay
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS Product engagement drives subscribers to pay and stay Prior Week Active Days vs. Cancel Attempts Direct billed News-only, 2021 We have seen that higher engagement levels are correlated with lower cancel attempts. Cancel rate Trendline 0 1 2 3 4 5 6 7 Act
Slide 87: Focused investments in features that drive engagement and retention
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS We’ve made focused investments in the features that drive engagement and retention within each product Habits Tied to Engagement and Retention Subscriber Activity Analysis, 2022 Many features that drive high Saved a recipe subscriber engagement also driv
Slide 88: In News, live storytelling keeps users up-to-date
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS In News, live storytelling keeps users up-to-date and gives them reason to come back as stories develop So far in 2022, on LIVE REPORTER UPDATES LIVE GRAPHICS LIVE VISUALS average 60% of news subscribers read our live coverage and 60% of them returned to
Slide 89: In Cooking and Games, participatory features build habits
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS In Cooking and Games, participatory features like recipe boxes and gameplay build habits that bring users back Cooking subscribers who save SAVING A COOKING RECIPE P L AY I N G M O R E T H A N O N E G A M E recipes are 10% more likely to retain at least
Slide 90: Highly personalized and tailored experiences
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS Highly personalized and tailored experiences encourage frequent engagement CUSTOMIZED NOTIFICATIONS IN THE ATHLETIC PERSONALIZED COVERAGE IN NEWS INTERNATIONAL U.S. Geotargeting international readers can drive a significant lift Following 1+ league is on
Slide 91: More differential value in the subscribed state
ENGAGEMENT AS A GROWTH DRIVER WITHIN PRODUCTS We are putting more differential value in the subscribed state – including new exclusive benefits – to drive subscriber retention In Q1 2022, subscribers S U B S C R I B E R - O N LY N E W S L E T T E R S who added a subscriber- only newsletter were 20%
Slide 92: Engagement as a Growth Driver Across Our Bundle
Engagement as a Growth Driver Across Our Bundle
Slide 93: Multi-product subscribers pay the most and retain best
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE Beyond optimizing individual products, we are aiming to grow engagement across our Bundle; multi-product subscribers pay the most and retain best Subscriber Engagement By Type Digital Bundle and multi- Average % On Site Weekly, Q1 2022 product subscrib
Slide 94: Connecting our product funnels to drive Bundle growth
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE We are connecting our product funnels to drive multi-product Bundle growth NEWS 50–100+ million WAU THE GAMES COOKING WIRECUTTER 6.9 million subscriptions AT H L E T I C (across News, All Access, Print) News WAU data reflects Q1 2022, as well as releva
Slide 95: Connecting our product funnels to drive Bundle growth
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE We are connecting our product funnels to drive multi-product Bundle growth NEWS 50–100+ million WAU THE GAMES COOKING WIRECUTTER 6.9 million subscriptions AT H L E T I C (across News, All Access, Print) News WAU data reflects Q1 2022, as well as releva
Slide 96: Connecting our product funnels to drive Bundle growth
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE We are connecting our product funnels to drive multi-product Bundle growth NEWS 50–100+ million WAU THE GAMES COOKING WIRECUTTER 6.9 million subscriptions AT H L E T I C (across News, All Access, Print) News WAU data reflects Q1 2022, as well as releva
Slide 97: News is our most powerful audience and subscriber funnel
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE News is our most powerful audience and subscriber funnel for the Bundle Homescreen programming in News guides users to each part of our multi-product portfolio TOP NEWS C U LT U R E & L I F E S T Y L E NEWSLETTERS & AUDIO COOKING & WIRECUTTER GAMES
Slide 98: Lifestyle product funnels are additional entry points
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE Lifestyle product funnels, like Games, are additional entry points into The Times Bundle Wordle has brought tens of millions of new users to The Times. In Q1 2022, Wordle more than doubled our weekly average users for non-Wordle games, leading to our b
Slide 99: Integrating our most retentive experiences across products
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE We are integrating our most retentive experiences across products Gameplay in News We are testing a new Games tab called “Play” in our News app to: • Increase gameplay initiations across the Bundle • Grow the volume of subscribers who engage with News
Slide 100: News homescreen as the center of a connected experience
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE News homescreen as the center of a connected experience ILLUSTRATIVE
Slide 101: Exposing users to the full breadth of our news coverage
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE Exposing users to the full breadth of our news coverage across… ILLUSTRATIVE
Slide 102: Live
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Live ILLUSTRATIVE
Slide 103: Opinion
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Opinion ILLUSTRATIVE
Slide 104: Culture & Lifestyle
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Culture & Lifestyle ILLUSTRATIVE
Slide 105: Exposing users to our breadth of lifestyle products
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE And exposing users to our breadth of lifestyle products… ILLUSTRATIVE
Slide 106: Audio
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Audio ILLUSTRATIVE
Slide 107: Games
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Games ILLUSTRATIVE
Slide 108: Cooking
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Cooking ILLUSTRATIVE
Slide 109: Wirecutter
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …Wirecutter ILLUSTRATIVE
Slide 110: And The Athletic
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE …And The Athletic ILLUSTRATIVE
Slide 111: The essential Times subscription
ENGAGEMENT AS A GROWTH DRIVER ACROSS OUR BUNDLE The essential Times subscription: a connected family of products
Slide 112: Product engagement is key to subscriber growth and retention
Product engagement is key to both subscriber growth and retention Our audience and Product engagement as a growth Product engagement as a market opportunity driver within each product growth driver across our Bundle Our TAM is made up of curious, We know how important healthy Our digital Bundle allo
Slide 113: The Athletic and the Opportunity in Sports
The Athletic and the Opportunity in Sports JUNE 13, 2022
Slide 114: David Perpich
PUBLISHER OF THE ATHLETIC AND WIRECUT TER David Perpich
Slide 115: The Athletic will enable us to further penetrate our TAM
Our plan suggests The Athletic will enable us to further penetrate our TAM as we accelerate its growth and profitability The opportunity in sports The role of The Athletic Our plans
Slide 116: The Opportunity in Sports
The Opportunity in Sports € The New York Times Company
Slide 117: Sports presents a highly attractive opportunity for TAM penetration
THE OPPORTUNITY IN SPORTS Sports as a category presents a highly attractive opportunity for TAM penetration 135m TAM Sports Journalism Market Nearly 100m audience in US alone who express strong interest in Open to sports journalism suggests an additive funnel opportunity New York Times Company Produ
Slide 118: Search volume supports our optimism on market size
THE OPPORTUNITY IN SPORTS Search volume supports our optimism on market size and durability Sports Politics Relative Search Topic Interest within News Business US Google Trends Data, May 2021–May 2022 Travel Culture 100 75 50 25 0 7/1/2021 9/1/2021 11/1/2021 1/1/2022 3/1/2022 5/1/2022 Data reflects
Slide 119: The role of The Athletic
The role of The Athletic € The New York Times Company
Slide 120: The Athletic provides the ideal platform to enter sports
T H E R O L E O F T H E AT H L E T I C The Athletic provides the ideal platform for The Times to enter the sports market due to its quality, breadth, depth and business model An engine of coverage… …with global breadth… …worth paying for NFL 400+ NBA 1.26m Journalists across the United States, Subsc
Slide 121: Authoritative coverage of the English Premier League and soccer
T H E R O L E O F T H E AT H L E T I C Authoritative coverage of the English Premier League and soccer provides global reach and we believe a large opportunity for international growth Global Fan Popularity By Social Following1 Total followers (millions), May 2022 Real Madrid 250m+ Most Followed Clu
Slide 122: Highly personalized product delivers relevance and engagement
T H E R O L E O F T H E AT H L E T I C Highly personalized product delivers relevance and drives engagement Illustrative Subscriber “Fangraph" 4.3 71% Avg. # of teams Read national and followed local stories monthly 83% 73% Read about 2+ Read about 2+ leagues per month teams per month Data is intern
Slide 123: The sports calendar lends itself to year-round engagement
OUR PLANS The sports calendar lends itself to year-round fan engagement % of Total Annual Content Published by Month, 2021 9% 8% 10% 9% 9% 8% 8% 8% 8% 9% 8% 8% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec NCAA FB NFL NCAA NFL UEFA NBA NHL Premier NFL MLB FIFA NCAA FB Playoff Superbowl Tournament
Slide 124: Our plans
Our plans € The New York Times Company
Slide 125: Three levers from The Times' playbook
OUR PLANS We plan to apply three levers from The Times’ playbook to accelerate growth and achieve accretive profit contribution beginning in 2025 Lever 1: Audience Growth Lever 2: Subscriber Growth Lever 3: Advertising Revenue Growing the top of the funnel of Growing standalone and Extending into a
Slide 126: Audience Growth: opportunity to gain share against competition
OUR PLANS Audience Growth: We see significant opportunities to grow The Athletic’s audience and gain meaningful share against the competition 80 Monthly Active Users April 2021–March 2022 Average, millions 1. Reach the audience on search by leveraging authority of our coverage with technical and edi
Slide 127: Audience Growth: Wirecutter WAU playbook
OUR PLANS Audience Growth: We have run this playbook before with Wirecutter - we approximately tripled Wirecutter’s WAUs between Q1 2019 and Q1 2022 Wirecutter WAU Q1 2019–Q1 2022, medians ~3x Q1 2019 Q1 2020 Q1 2021 Q1 2022
Slide 128: Subscribers: leveraging The Athletic to grow Bundle revenue
OUR PLANS Subscribers: We plan to leverage The Athletic to increase the revenue generated by the Bundle, while driving The Athletic’s standalone subscription revenue FOCUS AREAS OPPORTUNITIES & ACTIONS / TIMING Opportunity: Nearly 8m New York Times Company subscribers without access to The Athletic
Slide 129: Advertising: unlocking a significant ad revenue stream
OUR PLANS Advertising: By leveraging The New York Times Company’s playbook, we believe we can also unlock a significant advertising revenue stream T H E B U S I N E S S TO D AY THE OPPORTUNITY WE SEE Limited revenue: Under $10m in ad revenue in 2021 Meaningful revenue: Making share from a large digi
Slide 130: The Athletic will enable us to further penetrate our TAM
Our plan suggests The Athletic will enable us to further penetrate our TAM as we accelerate its growth and profitability The opportunity in sports The role of The Athletic Our plans Sports as a category presents a The quality, depth and breadth of the We have a proven playbook and have highly attrac
Slide 131: Key Subscription Growth Levers
Key Subscription Growth Levers JUNE 13, 2022
Slide 132: Hannah Yang
CHIEF GROWTH OFFICER Hannah Yang
Slide 133: Poised to deliver on our targets
We believe we are poised to deliver on our targets and move subscribers up the value chain to the Digital Bundle Our subscription funnels The major drivers of our Our next phase of growth with subscription growth the Digital Bundle
Slide 134: Our funnels
Our funnels € The New York Times Company
Slide 135: Our model enables us to offer value to each member of our audience
OUR SUBSCRIPTION FUNNEL Our model enables us to offer value to each member of our audience as we seek to further penetrate a larger portion of our TAM Anonymous Users A large share of our 50 to 100+ million WAU Limited access for free Registered Users 135+ million and growing pool of registrations A
Slide 136: More effective at converting users to subscribers
OUR SUBSCRIPTION FUNNEL As we’ve grown our audience we’ve become much more effective at converting users to subscribers Median Q1 Enterprise WAU vs. Q1 Digital Subscription Starts 3.5x Q1 2018 — Q1 2022 (Excl. The Athletic) Q1 digital subscription Median Q1 WAU starts Q1 Digital Subscription Starts
Slide 137: Major drivers of subscription growth
Major drivers of subscription growth
Slide 138: Our registration model
MAJOR DRIVERS OF OUR GROWTH Our registration model, where users gain access to more content upon creating an account, has helped us improve how effectively we acquire subscribers Total Registrations (excl. The Athletic) We now have more than 135 million 2016 – 2021 year-end totals, millions register
Slide 139: Using reader data to time subscription offers
MAJOR DRIVERS OF OUR GROWTH We are using the data we gather on readers to better inform when we present them with a subscription offer, and how we bring them to full price Average Pageviews Engagement Subscriptions (Conversation Rate) Subscriptions (Conversation Rate) Behaviorally Based News Paywall
Slide 140: Using data to bring subscribers to full price
MAJOR DRIVERS OF OUR GROWTH We are using the data we gather on readers to better inform when we present them with a subscription offer, and how we bring them to full price Price Per Bill Time Transition to Full-Price Modeling Identifies subscribers most likely to withstand a full price increase. Bas
Slide 141: Product-driven growth reduces dependence on media spend
MAJOR DRIVERS OF OUR GROWTH Investments in product-driven growth – journalism and product development – have helped us become less dependent on media spend to drive starts Subscriber Acquisition Cost As our ability to convert users entering 2018 — Q1 2022 (Excludes The Athletic) our funnels improved
Slide 142: Our next phase of growth
Our next phase of growth € The New York Times Company
Slide 143: Bringing more users onto our multi-product Bundle
OUR NEXT PHASE OF GROWTH We are focused on bringing a larger number of users onto our multi-product Bundle Subscriber Starts on the Digital Bundle Q1 2022, % of weekly Digital total (excl. The Athletic) Since 2019, we have doubled the number of digital Bundle and digital 20% multi-product subscriber
Slide 144: Driving Bundle uptake positions us to improve digital ARPU
OUR NEXT PHASE OF GROWTH Driving Bundle uptake positions us to improve digital ARPU Sample US Subscriber Rates 4-week full price bill: May 2022 Our Bundle subscriptions are priced nearly 50% above Digital News Only and Cooking, Games, or Wirecutter even more for our other single-product The Athletic
Slide 145: The Bundle is the most valuable way to experience our offerings
OUR NEXT PHASE OF GROWTH The Bundle is the most valuable way to experience our offerings, and its value is reflected in subscriber engagement and retention rates B U N D L E V S . N E W S - O N LY S U B S C R I B E R S % on site (any product) 10 - 20 pp higher each week as of Q1 2022 List Price Near
Slide 146: Merchandising and marketing the Bundle across our funnels
OUR NEXT PHASE OF GROWTH We’re just starting to merchandise and market the Bundle across our funnels
Slide 147: Poised to deliver on our targets
We believe we are poised to deliver on our targets and move subscribers up the value chain to the Digital Bundle Our subscription funnels The major drivers of our growth Our next phase of growth We have been diligently optimizing Since introducing our registration model We know that the best way to
Slide 148: Financial Overview
Financial Overview JUNE 13, 2022
Slide 149: Roland Caputo
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER Roland Caputo
Slide 150: Long-term value creation opportunity
Long-term value creation opportunity Tremendous potential to attract and retain a larger subscriber base with a high quality portfolio of leading journalism and lifestyle products driven by a competitively advantaged digital model. 1 2 3 4 5 High quality portfolio Market leader with Competitively Ad
Slide 151: Successfully Transformed Into a Digital-first, Subscription-first Model
Successfully Transformed Into a Digital-first, Subscription-first Model Historical performance, 2016 to 2021 Subscriptions at Year-end Digital % of Sub + Adv Revenues Revenues Profit Total Digital-only Total Digital-only Adjusted +25% CAGR +34% CAGR +6% CAGR +20% CAGR Operating Profit 30% +8% CAGR 2
Slide 152: Transformation of the Balance Sheet Provides Optionality
Transformation of the Balance Sheet Provides Optionality Historical performance, 2016 to 2021 Qualified Pension Obligations 2 Cash Position 1 $738m $491m $1,074m $1,799m $1,476m Pension obligation Underfunded $74m n/a Overfunded Cash Net Cash Debt Cash/Net $247m ($222m) Cash3 Debt 2016 2021 2016 202
Slide 153: Proven track record of delivering on targets
Proven track record of delivering on targets Historical Targets Date Set Result Double digital revenue by 2020 2015 Achieved in 2019 1 year early 10 million subscriptions by 2025 2019 Achieved in early 2022 3 years early Targets for Next Phase of Growth Date Set Progress 15 million subscribers by 20
Slide 154: Next Phase of Digitally Focused Strategy
Next Phase of Digitally Focused Strategy Designed to Drive Attractive Revenue and AOP Growth Midterm Targets: Adjusted Operating Profit CAGR of 9-12% Attractive, sustainable Increased leverage in the Improvement in consolidated Strong Free Cash Flow revenue growth digital business margins starting i
Slide 155: Next Phase: other considerations for AOP trajectory
Next Phase of Digitally Focused Strategy Designed to Drive Attractive Revenue and AOP Growth Other considerations for Adjusted Operating Profit trajectory Improving profitability of Midterm AOP target includes The Athletic slow, steady decline of print Expect The Athletic to be accretive Managing th
Slide 156: Strong Free Cash Flow Generation and Disciplined Return of Capital
Strong Free Cash Flow Generation and Disciplined Return of Capital Durable Free Cash Flows and Four years of Consecutive Low Capital Intensity Dividend Increases From 2016 to 2021 the Company has generated From 2016 to 2021 we cumulatively returned 26% of nearly $800m in Free Cash Flow and funded a
Slide 157: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Capital Allocation Priorities: Prioritizing organic investment. Expect to return 25-50% of Free Cash Flow to shareholders in the form of dividends and share repurchases. 1. Organic investment: To drive growth and extend 2. Quarterly Dividend: Quarterly dividen
Slide 158: Key Takeaways
Key Takeaways Transformed into a proven digital Operating leverage is expected to Cash flows are strong and the leader, well positioned to grow and increase over the midterm, even as balance sheet healthy extend competitive advantages we continue investing to fuel long- term growth We will be consis
Slide 159: Long-term value creation opportunity
Long-term value creation opportunity Tremendous potential to attract and retain a larger subscriber base with a high quality portfolio of leading journalism and lifestyle products driven by a competitively advantaged digital model. 1 2 3 4 5 High quality portfolio Market leader with Competitively Ad
Slide 160: Reconciliations to Non-GAAP Metrics
Reconciliations to Non-GAAP Metrics
Slide 161: Reconciliation of Operating Profit to Adjusted Operating Profit
Reconciliation of Operating Profit to Adjusted Operating Profit and Adjusted Operating Profit Margin We define Adjusted Operating Profit as operating profit, as reported, before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted Operating P
Slide 162: Reconciliation of Net cash provided by operating activities to Free Cash Flow
Reconciliation of Net cash provided by operating activities to Free Cash Flow We define Free Cash Flow as net cash provided by operating activities less capital expenditures. ($ in Thousands) 2016 2017 * 2018 2019 2020 2021 Net cash provided by operating activities 103,876 86,712 157,117 189,898 297
Slide 163: Investor Day
Investor Day JUNE 13, 2022
The New York Times Company — Investor Day (June 2022) on 6ix