Slide 1: Paramount Global
PARAMOUNT GLOBAL November 2, 2023
Slide 2: Important Information
IMPORTANT INFORMATION CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS NON-GAAP FINANCIAL MEASURES 1
Slide 3: Paramount: One of the World's Preeminent Content Creators
PARAMOUNT: ONE OF THE WORLD’S PREEMINENT CONTENT CREATORS DIRECT-TO-CONSUMER 200K+ TV EPISODES 4K+ FILMS ENTERTAINMENT NEWS SPORTS TV MEDIA KIDS FILM FILMED ENTERTAINMENT 2
Slide 4: Paramount: Investment Highlights
PARAMOUNT: INVESTMENT HIGHLIGHTS Creating shareholder value by leveraging world-class content to build a next generation media company 1 2 3 4 BEST IN CLASS DTC GROWTH LARGE & EXPECT CONTENT, WITH FOCUS ON PROFITABLE SIGNIFICANT DISTRIBUTION & PROFITABILITY TV MEDIA EARNINGS GROWTH MONETIZATION BUSI
Slide 5: World Class Content Engine
WORLD CLASS CONTENT ENGINE 1 2 3 4 Franchise-focused content strategy leveraging popular IP ICONIC CBS HIT GLOBAL KIDS’ FAVORITE THE EXPANDING MARQUEE SPORTS MOVIES SHOWS REALITY CHARACTERS TAYLORVERSE PROPERTIES SPONGEBOB TRANSFORMERS PAW PATROL NCIS SURVIVOR SQUAREPANTS SPECIAL OPS: LIONESS MISSIO
Slide 6: Multi-Platform Distribution
MULTI-PLATFORM DISTRIBUTION 1 2 3 4 AFFILIATE & SUBSCRIPTION REVENUE $ 3.3 B $ 2.9 B #1 BROADCAST NETWORK PREMIUM 15-SEASON STREAK STREAMING SERVICE +14% Q3'22 Q3'23 1 OF 5 MAJOR FILM STUDIOS LEADING FAST SERVICE 5
Slide 7: Power of Partnership
POWER OF PARTNERSHIP 1 2 3 4 Attaining ubiquitous distribution & reaching the widest addressable audience EXTENDING REACH ACROSS …AND AROUND THE GLOBE DISTRIBUTION CHANNELS… 6
Slide 8: Multiple Revenue Streams
MULTIPLE REVENUE STREAMS 1 2 3 4 Improving returns on content investments by monetizing across streaming, linear, theatrical and more P+ SUBSCRIPTION ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ DIGITAL ADVERTISING ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ LINEAR AD & AFFILIATE ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ CONTENT LICENSING ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ BOX OFFICE ✓ ✓ ✓ CONSUMER
Slide 9: Scaled Digital Video Ad Capabilities
SCALED DIGITAL VIDEO AD CAPABILITIES 1 2 3 4 EyeQ has rapidly become a leader in Connected TV advertising Q3 GLOBAL TOTAL VIEWING HOURS ACROSS PARAMOUNT+ AND PLUTO TV ~20% +46% Estimated Revenue CAGR FY 2023 vs. 2019 100M+ FULL EPISODE VIEWERS Q3'22 Q3'23 8
Slide 10: Strategic Content Licensing
STRATEGIC CONTENT LICENSING 1 2 3 4 Delivering financial and franchise-building benefits $6.4B Content Licensing & Other Revenue Trailing 12-Months Thru Q3 2023 WINDOWED LICENSED DRIVES SUCCESSFUL CONTENT HELPS BUILD NEW SPIN-OFFS AWARENESS ⋆ ⋆ ⋆ ⋆ ⋆ ⋆ ⋆ ⋆ 9
Slide 11: Leading DTC Growth
LEADING DTC GROWTH 1 2 3 4 Strong momentum in subscriber and revenue growth GLOBAL DTC $ 6.3 B SUBSCRIBERS REVENUE REVENUE 63.4 M $ 4.6 B 46.0 M +62% $ 3.9 B $ 2.4 B +37% +17.4M Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 10
Slide 12: Paramount+
PARAMOUNT+ 1 2 3 4 Leading premium streaming service in domestic sign-ups and gross adds since launch in March ‘21 SPORTS, NEWS, AND A MOUNTAIN OF ENTERTAINMENT ORIGINALS LOCAL NEWS LIVE SPORTS REALITY BLOCKBUSTERS CLASSICS 63.4M 45+ ~35K GLOBAL GLOBAL DOMESTIC SUBSCRIBERS MARKETS CONTENT HOURS TWO
Slide 13: Paramount+ Pricing Headroom Enhances ARPU Growth Opportunity
PARAMOUNT+ PRICING HEADROOM 1 2 3 4 ENHANCES ARPU GROWTH OPPORTUNITY Compelling value proposition relative to peers $5.99 $5.99 $11.99 $11.99 +20% PARAMOUNT+ $7.99 $13.99 GLOBAL ARPU $7.99 $17.99 EXPANSION $9.99 $15.99 $19.99 $6.99 $15.49 $22.99 AD TIER AD FREE TIERS 12
Slide 14: Driving Towards DTC Profitability
DRIVING TOWARDS DTC PROFITABILITY 1 2 3 4 Expect significant DTC margin improvement in 2024 STRONG IMPROVED INCREMENTAL REVENUE GROWTH CONTENT EFFICIENCY OPERATING LEVERAGE ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 13
Slide 15: Large & Profitable TV Media Business
LARGE & PROFITABLE TV MEDIA BUSINESS 1 2 3 4 REVENUE PERFORMANCE OUTPACING AUDIENCE DECLINES $21.7B 2022 REVENUE OPPORTUNITIES TO FURTHER EVOLVE COST $5.5B 2022 ADJ. OIBDA STRUCTURE 14
Slide 16: Expect Significant Earnings Growth in 2024
EXPECT SIGNIFICANT EARNINGS 1 2 3 4 GROWTH IN 2024 CONTINUED SUBSCRIBER GROWTH PARAMOUNT+ PRICING OPPORTUNITIES IMPROVED AD MONETIZATION PARAMOUNT+ WITH SHOWTIME INTEGRATION BENEFITS IMPROVED CONTENT & MARKETING EFFICIENCY INCREASED OPERATING LEVERAGE 15
Slide 17: Supplemental Information
SUPPLEMENTAL INFORMATION
Slide 18: Summarized Reported Results (GAAP)
TRENDING SCHEDULES: Schedule 1 SUMMARIZED REPORTED RESULTS (GAAP) 17
Slide 19: Summarized Adjusted Results (Non-GAAP)
TRENDING SCHEDULES: Schedule 2 SUMMARIZED ADJUSTED RESULTS (Non-GAAP) 18
Slide 20: TV Media Financial Results
TRENDING SCHEDULES: Schedule 3 TV MEDIA FINANCIAL RESULTS 19
Slide 21: Direct-to-Consumer Financial Results and Other Metrics
TRENDING SCHEDULES: Schedule 4 DIRECT-TO-CONSUMER FINANCIAL RESULTS AND OTHER METRICS 20
Slide 22: Filmed Entertainment Financial Results
TRENDING SCHEDULES: Schedule 5 FILMED ENTERTAINMENT FINANCIAL RESULTS 21
Slide 23: Reconciliation of Adjusted OIBDA (Non-GAAP)
TRENDING SCHEDULES: Schedule 6 RECONCILIATION OF ADJUSTED OIBDA (Non-GAAP) 22
Slide 24: Reconciliation of Adjusted Net Earnings and Diluted EPS (Non-GAAP)
TRENDING SCHEDULES: Schedule 7 RECONCILIATION OF ADJUSTED NET EARNINGS AND DILUTED EPS (Non-GAAP) 23
Slide 25: Items Affecting Comparability
TRENDING SCHEDULES: Schedule 8 ITEMS AFFECTING COMPARABILITY 24
Slide 26: Free Cash Flow (Non-GAAP)
TRENDING SCHEDULES: Schedule 9 FREE CASH FLOW (Non-GAAP) 25
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