Slide 1: Analyst Presentation
Exhibit 99.1 Analyst Presentation May 14, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995; particularly statements regarding future financial and operating results of Time Inc. (the “Company”) and its business. These statements are based on managemen
Slide 3: Agenda
Agenda Introduction Pages 4-7 Executive Summary Pages 8-20 Overview of Time Inc. Pages 21-42 Financial Overview Pages 43-51 Appendix Pages 52-55 3
Slide 4: Introduction
INTRODUCTION ‘Timelne. 4
Slide 5: Spin-Off Overview
Spin-Off Overview • TimeInc. is the largestmagazinepublisherin the U.S.basedon both readershipandprint advertisingrevenues with over 90magazinetitles globally,includingPEOPLE, SportsIllustrated,InStyle,TIMEandRealSimple • On March 6, 2013 Time Warner announced plans for the complete legal and struct
Slide 6: Spin-Off Transaction Rationale
Spin-Off Transaction Rationale The spin-off will enable Time Inc. to benefit from the flexibility and focus of being a stand-alone public company Provides strategic clarity and flexibility • Better able to execute on strategic plans and respond to industry dynamics • Increased flexibility to pursue
Slide 7: Spin Timeline
Spin Timeline • Debt financing was completed in April 2014 (subject to closing conditions for Term Loan B and Revolver) • Spin-off targeted for completion on Juneth 6 May 2014 June 2014 S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 7 Holiday 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15
Slide 8: Executive Summary
EXECUTIVE SUMMARY ‘Timelne. 8
Slide 9: Presenters
Presenters Time Inc.’s New Senior Leadership Team Joseph A. Ripp, Chief Executive Officer • Mr. Ripp became CEO in September 2013 • As a former top Time Inc. and Time Warner executive, Mr. Ripp spent the past decade immersed in the intersection of digital, advertising and publishing • Prior affiliat
Slide 10: Time Inc. Overview
Time Inc. Overview 2013 Revenue by Type ($MM) Industry-leading collection of media brands 1 Largestmagazinepublisherin the U.S.and the U.K.2 Other $418 ~100MM U.S. consumers in print per month 12% 23 magazines published in the U.S. Circulation Advertising $1,807 70+ magazines published international
Slide 11: Time Inc. Timeline
Time Inc. Timeline Oct 1, 2013 Acquisition of Affluent Media Oct 17, 2001 Group (formerly American Acquisition of IPC Mar 6, 2013 Express Publishing) Media (U.K.), a Time Warner leading magazine announced plans publisher with 90+ to separate Time 1990 titles Inc. Jan 1990 Merger with Warner 1985 Com
Slide 12: Investment Highlights
Investment Highlights • Industry leading scale and brands • Passionate subscriber base that can be monetized across platforms and provides extensive consumer data • Strong Free Cash Flow profile • New management team with proven track record of business transformation • Clear path to creating long-t
Slide 13: U.S. Consumer Magazine Publishing: $24.3B Annual Revenue
U.S. Consumer Magazine Publishing: $24.3B Annual Revenue Advertising made up 67% of all magazine industry revenue in 2013 1 Magazine Publishing Revenue 2013 ($MM) 2013 Top Magazine Industry Ad Categories Industry, Govt & Org, 3% 2 Other, 4% Travel, 4% Beauty, 17% Financial, 5% Circ Revenue $8.0B Aut
Slide 14: Magazines Have a Large, Highly Engaged Audience
Magazines Have a Large, Highly Engaged Audience 91% of all adult Americans read magazines Print magazines rank #1 in commanding consumer attention and advertising acceptance Magazine ads outperform other media with regard to credibility and influence 59% of readers took action or plan to take action
Slide 15: Top Magazine Publishers are Taking Share
Top Magazine Publishers are Taking Share The share for the top four publishers has increased from 64% in 2009 to 68% in 2013 PIB-Measured Publishers Share of Advertising Revenue 100% 90% 36.5% 31.6% 80% 70% 11.1% All Other 60% 13.2% Meredith 50% 15.6% CondéNast 13.9% 40% Hearst 30% 18.0% 16.4% Time
Slide 16: Key Challenges and Transformational Progress
Key Challenges and Transformational Progress Key Challenges Transformational Progress Secular Headwinds Protect the Core • Advertising revenues migrating to digital • Dissolved complex operating matrix • Newsstand declines • Launched program to attack processes and • Digital monetization underperfor
Slide 17: Strategic Priorities – Leverage Content and Brands
Strategic Priorities L –everage Content and Brands Drive efficiencies to protect cash flows and free up resources for reinvestment Better align editorial function with business opportunities Enhance effectiveness of advertising sales Optimize subscription offers and consumer pay strategies Maximize
Slide 18: Adjacent Opportunities
Adjacent Opportunities Monetizing audience • Continue to invest in digital media, including mobile and video, scale across platforms as well as social extensions of our brands • Extend brands beyond print and digital magazines New consumer • E.g., direct sales or licensing agreements related to cons
Slide 19: Accomplished Management Team Driving Change
Accomplished Management Team Driving Change Management Team Todd Larsen, EVP Colin Bodell EVP – and Chief Technology Officer • CurrentRole:Overseesoperations including PEOPLE, • Current Role:Responsible for shaping the company’s strategic Sports Illustratedand TIME technology direction, day-to-day o
Slide 20: Accomplished Board of Directors Guiding Us into the Future
Accomplished Board of Directors Guiding Us into the Future Board of Directors • David A. Bell Chairman - and Chief Executive Officer, Slipstream Communications, LLC • John M. Fahey, Jr.Non-Executive - Chairman, National Geographic Society • Manuel A. FernandezFormer - Executive Chairman, Sysco Corpo
Slide 21: Overview of Time Inc.
OVERVIEW OF TIME INC. Timelne. a
Slide 22: Category-Leading Portfolio of U.S. Brands
Category-Leading Portfolio of U.S. Brands MRI Print Audience (000) 104,665 Time Inc. is the across the board 80,730 industry leader 66,470 50,313 • #1 Print Audience • #1 in Online Audience + Net Hearst Net Meredith Net CondéNast AMEX (20 titles) (19 titles) (12 titles) (16 titles) • #1 in Print Ad
Slide 23: Category-Leading Portfolio of U.S. Brands (Cont'd.)
Category-Leading Portfolio of U.S. Brands (Cont’d.) Time Inc. titles rank #1 or #2 in advertising revenue share in 15 of the 18 PIB categories in which we compete BRANDS CATEGORY 2013 AD RANK CATEGORY SHARE Celebrity Weekly #1 58% Sports –General #1 66% Women’s Fashion #1 19% Weekly news magazine #1
Slide 24: Time Inc. Has Diverse Ad Categories and Accounts in the U.S.
Time Inc. Has Diverse Ad Categories and Accounts in the U.S. Key Advertisers Time Inc.’s Portfolio Draws a Diverse Ad Base • Female-oriented brands are the financial engine of Time Inc.’s portfolio PEOPLE (71%female audience),InStyle(91%), Real Simple (88%), Southern Living (79%), and Cooking Light
Slide 25: Strong ROI Drives Advertiser Loyalty
Strong ROI Drives Advertiser Loyalty • Nielsen Catalina Pinpoint establishes the ROI magazines present to advertisers: – Leverages shopper data from over 60MM households to measure the sales impact of print and digital advertising – Created a single source approach to measuring cross platform (TV, P
Slide 26: Magazine Effectiveness Case Study – Top 5 Beauty Advertiser
Magazine Effectiveness Case Study Top– 5 Beauty Advertiser Product type Campaign Outcome Print:EntertainmentWeekly,Essence, • SalesLift:5% Cream Lip Color InStyle, PEOPLE, People StyleWatch • Payback11.5x : • Share gain from key competitors • SalesLift:2% Anti-Wrinkle + Print:Health,InStyle,PEOPLE,
Slide 27: Exceptional Content & Access (PEOPLE)
Exceptional Content & Access Circulation and audience 19MM Adjacent 43MM monthly Opportunities audience multiplatform Digital Scale Frequency unique visitors 8.3MM per week followers New Franchises 53x 47% 2.8MM Events per ranks $101.54 over average Reaches likes year #1 annual of top peers 1 in 5 M
Slide 28: Exceptional Content & Access (Sports Illustrated)
Exceptional Content & Access Circulation and audience 14MM Adjacent 20MM monthly Opportunities audience multiplatform per week 58% 4.1MM over average unique visitors Frequency of top peers likes • New Franchises 1.2MM • Events 56x $41.55 followers per annual SI’s readers are more loyal • Multimedia
Slide 29: Exceptional Content & Access (InStyle)
Exceptional Content & Access Circulation and audience 2.5MM Adjacent 88% monthly 9.6MM over average multiplatform Opportunities audience of top peers unique visitors 2.7MM 3.3MM likes • Product Sales per month followers • Digital Frequency 20MM Innovation $22.74 13x annual consumers • E-Commerce per
Slide 30: Exceptional Content & Access (TIME)
Exceptional Content & Access Circulation and audience 24MM Adjacent 18.7MM monthly Opportunities audience multiplatform per week 5.6MM • Contributor unique visitors followers Network Frequency 3.4MM • Events 53x 11MM $29.35 likes mobile unique visitors annual • Time for Kids per and Extension subscr
Slide 31: Exceptional Content & Access (Real Simple)
Exceptional Content & Access Circulation and audience 5.4MM 1.1MM Adjacent monthly Opportunities 8.1MM multiplatform likes audience 41% unique visitors 661K • E-Commerce Frequency per week over average followers of top peers • Product Sales 12x • Contributor per Affluent audience: year $20.02 Networ
Slide 32: IPC – U.K.'s Leading Consumer Multi-Platform Publisher
IPC –U.K.’s Leading Consumer Multi-Platform Publisher 63 Brands #1 ABC volume share (28.3%) & value share (21.9%) across print, web, mobile, tablet and #1 Print advertising share: 30.4% paging Reach nearly events #2 Subscription volumes half of U.K. population 4.5MM unique Reach Users #1 Multi-platf
Slide 33: Brand Extension Case Study
Brand Extension Case Study 33
Slide 34: Brand Extension Case Study
Brand Extension Case Study Overview • Live streaming network delivered to mobile devices • Access to original sports programming in two-minute segments 24 hours a day: Hosted programming Interactive narratives 120 Sports will be a Unique Platform Game footage • Multi-sportT : hefirst time leagueshav
Slide 35: Brand Extension Case Study
Brand Extension Case Study • Essencewas created as a forum that would enrich and improve the day-to-day lives of women • Essence Festival now hosts nearly 550,000 attendees, making it one of the largest live consumer events in the country • Past Festival performing artists and speakers have included
Slide 36: Benefits of Scale – Affluent Media Group Acquisition Case Study
Benefitsof Scale– Affluent Media GroupAcquisitionCaseStudy Strategic Rationale • Acquisition of iconic, premium brands with opportunities to leverage growth through new platforms • Ad sales opportunity based on expanded reach with Food & Wine and Departures • Broadens exposure to the important luxur
Slide 37: Benefits of Scale – Vertical Integration
Benefitsof Scale– VerticalIntegration Built For Scale • Vertically integrated with best-in-class subscriber acquisition, fulfillment and distribution operations • Ability to offer third party services to publishers and other sub-scale businesses • Fixed costs of operating scale provide real synergie
Slide 38: Subscriber Relationships Provide Extensive Consumer Insight and Data
Subscriber Relationships Provide Extensive Consumer Insight and Data Time Inc. Database Data Currently Leveraged for… Consumer Marketing • Transaction database of 150MM U.S. individuals Modeled direct mail and email campaigns • Offlinetransaction and demographic information Segmentation & targeting
Slide 39: Time Inc. Subscription Overview
Time Inc. Subscription Overview Tactics Challenges • Enhance portfolio of digital products and drive • Consumer shift from print to digital digital magazine revenue • Continued pressure on conversion rates and • Increase recurring/automated billing and drive economics of circulation acquisition onli
Slide 40: Time Inc. Newsstand Overview
Time Inc. Newsstand Overview Tactics Challenges • Aggressively pursue consumer activation • Declining channel, sales and profit – Consumer marketing techniques (value added • Supply chain faces declining revenues against a promotions, register messaging, couponing) largely fixed cost base • Continue
Slide 41: Time Inc. Advertising Overview
Time Inc. Advertising Overview Tactics Challenges • Re-focus on selling and communicating benefits • Shift toward digital with subsequent decline in of print demand for print • Improve ease of access for agencies and other • Premium inventory levels are decreasing as large advertisers advertiser's a
Slide 42: Digital Strategy for Growth
Digital Strategy for Growth • 1.1B monthly pageviews with 915MM minutes spent on our sites 1 Digital and • 45+ websites with 73.9MM monthly unique visitors in the U.S., 42MM of which were mobile Mobile • Databaseof 150MMU.S.individualsincluding offlinetransaction anddemographic information Foundatio
Slide 43: Financial Overview
FINANCIAL OVERVIEW Timelne. 43
Slide 44: Key Financial Highlights
Key Financial Highlights Ability to Transform Cost Base to Maintain Profitability Increase Monetization of Adjacent Opportunities Strong Free Cash Flow Profile to Fund Transformation Strong Balance Sheet Focused on Balance Between Reinvestment in the Business and Returning Capital to Shareholders 44
Slide 45: Historical Financials
Historical Financials 1 Revenue ($MM) Adjusted OIBDA ($MM) Advertising Subscription Newsstand Other 2 Adj. OIBDA margin $3,677 $3,436 $740 $3,354 $502 $422 $437 $617 $587 $498 $447 $389 $754 20.1% $748 $721 18.0% 17.5% $1,923 $1,819 $1,807 2011A 2012A 2013A 2011A 2012A 2013A Note:2013A includesAfflu
Slide 46: Ability to Transform the Cost Base
Ability to Transform the Cost Base Our operating plan includes substantial cost efficiencies Organizational restructure • Dissolve complex operating structure into a single portfolio of U.S. brands • Drive efficiencies and take out layers of overhead • Realign compensation and incentive policies • S
Slide 47: Strong Free Cash Flow Profile
Strong Free Cash Flow Profile • Minimal ongoing operating capital expenditure requirement excluding approximately $120MM of tenant improvements related to new lease • Substantial capacity to reinvest in the business and adjacent opportunities • Significant cash conversion to fund return of capital t
Slide 48: Capital Structure
Capital Structure • In connection with the spin-off, Time Inc. has raised $1.4 billion of funded debt, in the form of a $700MM 1st lien Term Loan B (subject to closing conditions) and $700MM of Senior Unsecured Notes Net proceeds from the financing will be used to purchase U.K. publishing operations
Slide 49: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Conservative balance sheet • Maintaining strategic flexibility and adequate access to debt capital markets 2.4x gross leverage and 2.1x net leverage at spin with no significant maturities before 2019 Target 2.0x -2.5x long-term leverage Maintain ample liquidit
Slide 50: Time Inc. Outlook for 2014
Time Inc. Outlook for 2014 ($MM) 2013 ACTUAL 2014 RANGE Revenue –as reported $3,354 Flat to +2% Revenue ex. Time Inc. Affluent Media Group $3,282 (3%) to (5%) AdjustedOIBDA1 margin(%) 17.5% 16.25% to 17.0% Public company costs $8 $27 to $32 Share-based compensation expense $18 $35 to $40 Interest ex
Slide 51: Summary Highlights
Summary Highlights • Industry leading collection of media brands • Large, highly engaged audience • Brands represent consumer passions that can be monetized across platforms • Subscriber relationships provide extensive consumer insight and data • Experienced management team with proven track record
Slide 52: Appendix
APHERN RIX Timelne. 82
Slide 53: Reconciliation of Operating Income to OIBDA and Adjusted OIBDA
Reconciliation of Operating Income to OIBDA and Adjusted OIBDA ($MM) 2011 2012 2013 Actual Actual Actual Operating Income $563 $420 $330 Depreciation 100 91 85 Amortization 42 36 42 OIBDA $705 $547 $457 1 Asset impairments 17 6 79 2 Restructuring and severance 18 27 63 3 Gains/losses on operating as
Slide 54: Reconciliation of Operating Income to Adjusted OIBDA - 2014 Outlook
Reconciliationof OperatingIncometo AdjustedOIBDA- 2014Outlook ($MM) 2014 Guidance 2013 Actual Low High Operating Income $330 $204 $231 Depreciation 85 85 89 Amortization 42 76 76 OIBDA $457 $365 $396 Asset impairments, restructuring and severance, gains/losses on operating assets, and external costs
Slide 55: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($MM) 2011 2012 2013 Actual Actual Actual Net income $368 $263 $201 Depreciation and amortization 142 127 127 Asset impairments 17 6 79 Loss on disposal of QSP Business — 36 — Equity-based compensation 41 39 18 All other, net, including working capital charges (94) (10)