News Corporation · NASDAQ:NWS
News — Investor Day (June 2013)
152 slides from News's investor day presentation, Jun 5, 2013
Slide 1: The new News Corporation Investor Day
The new News Corporation Investor Day June 5, 2013 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 1
Slide 2: Forward Looking Disclosure
Forward Looking Disclosure This presentation contains a number our control and could cause actual results are completed; uncertainty regarding our filings with the Securities and of forward-looking statements. The words to differ materially from those indicated in the the availability of financing t
Slide 3: Agenda
Agenda Welcome and Introduction K. Rupert Murdoch The new News Corp Robert J. Thomson News and Information Services Dow Jones Lex Fenwick News International (U.K.) Mike Darcey News America Marketing Paul V. Carlucci Break (15 minutes) Australia Operations Kim Williams News Limited (Australia) Foxtel
Slide 4: Rupert Murdoch, Executive Chairman of the new News Corp
Rupert Murdoch Executive Chairman of the new News Corp JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 4
Slide 5: Presenters
Presenters K. RUPERT MURDOCH ROBERT J. THOMSON BEDI A. SINGH Executive Chairman CEO of new News Corp CFO of new News Corp of new News Corp PAUL V. CARLUCCI MIKE DARCEY GREG ELLIS LEX FENWICK JOEL I. KLEIN BRIAN MURRAY KIM WILLIAMS Chairman and CEO CEO of U.K. CEO and CEO of Dow Jones CEO of Amplify
Slide 6: News Corp history timeline
News Corp 1964 1985 1990 2007 1954 ADELAIDE NEWS 1976 1996 2012 1950s 1960s 1970s 1980s 1990s 2000s 2010-2013 1960 SYDNEY MIRROR 1988 2010 1969 1986 1995 2000 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 6
Slide 7: The new News Corp
The new News Corp Robert J. Thomson - CEO of new News Corp JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 7
Slide 8: JUNE 5TH, 2013 INVESTOR DAY - SYDNEY
JUNE 5TH, 2013 INVESTOR DAY - SYDNEY
Slide 9: Globalization & Digitization
Globalization & Digitization 1 CHINESE OUTBOUND TOURISM (MILLIONS) 94 U.S. E-BOOK SALES (MILLIONS) 2 TH O W 18% CAGR (1998 - 2013) G R % 250 350 41 100 20 8 1998 2003 2008 2013 Q1 FY10 Q4 FY12 GLOBAL MOBILE DATA TRAFFIC (TERABYTES) 3 6.30EB U.S TABLET USERS (MILLIONS) 4 92% CAGR (2010 - 2015) W TH R
Slide 10: Great Content
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Slide 11: The Content Curve
THE CONTENT CURVE $$$ VALUE ⏲ TIME JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 11
Slide 12: m tion
m tion Functional JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 12
Slide 13: Revenue Base Diversified Across Geographies
Revenue Base Diversified Across Geographies OTHER 2% EUROPE 21% US & 41% CANADA AUSTRALIA 36% PF FY2012 Revenue by Geography JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 13 Note: Financials pro forma for acquisition of CMH and distribution adjustments.
Slide 14: Revenue Base Diversified Across Business Components
Revenue Base Diversified Across Business Components CONSUMER & OTHER 18% ADVERTISING 52% CIRCULATION & SUBSCRIPTION 30% PF FY2012 Revenue by Component JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 14 Note: Financials pro forma for acquisition of CMH and distribution adjustments.
Slide 15: Premium Content & Iconic Brands
Premium Content & Iconic Brands NEWS AND INFORMATION SERVICES BOOK CABLE PUBLISHING NETWORK PROGRAMMING AUSTRALIA EDUCATION SUBSCRIPTION TV EQUITY DIGITAL INVESTMENT REAL ESTATE SERVICES JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 15
Slide 16: Pioneer in the Transformation to Digital Media
Pioneer in the Transformation to Digital Media E-books account for ~20% of total book publishing revenue, up from ~10% in 20111 MOBILE E-BOOKS PLATFORMS PREMIUM Digital subscriptions (successfully developed at the WSJ) implemented CONTENT DIGITAL ENGLISH PREMIER LEAGUE across the portfolio News, Inf
Slide 17: Leadership Positions Across Key Businesses
Leadership Positions Across Key Businesses #1 NEWS PUBLISHING #1 SPORTS PROGRAMMING 1 #1 SUBSCRIPTION TV PROVIDER #1 REAL ESTATE WEBSITE #1 FREE-STANDING INSERTS #2 ENGLISH LANGUAGE BOOK 2 PUBLISHER JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 17 1 Owned 50% by New News Corp and 50% by Telstra. 2 Assumes co
Slide 18: #1 Media Franchise in Australia
#1 Media Franchise in Australia 2.3mm PRINT PUBLISHING 19.4mm total residential monthly online visits subscribers to online Real Estate * 30% + of the * 2.4x nearest competitor country’s population 63% #1 of all newspaper DIGITAL / MOBILE BROADCASTT in Sports circulation Programming FOX WEBSITE SPOR
Slide 19: Valuable Linkages Across Businesses
Valuable Linkages Across Businesses ENGLISH PREMIER LEAGUE SOCCER RIGHTS NEWS INTERNATIONAL WHERE NEXT? STATISTICS, PHOTOS, BLOGS JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 19
Slide 20: Catalysts for Value Creation
Catalysts for Value Creation • Transform publishing brands through digital innovation to increase profits • Capitalize on multiple growth levers of #1 Australian media franchise • Intense focus on cost and capital efficiencies throughout the organization • Strong balance sheet to support incremental
Slide 21: News and Information Services
News and Information Services JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 21
Slide 22: News and Information Services Key Highlights
News and Information Services KEY HIGHLIGHTS: 1 Largest News and Information services provider in English-speaking world 2 #1 newspaper by circulation in each of the U.S., Australia and the U.K. 3 Premium content delivered via the world’s leading and most trusted brands 4 Commitment to innovation an
Slide 23: News and Information Services: Dow Jones
News and Information Services Dow Jones Lex Fenwick - CEO of Dow Jones JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 23
Slide 24: Dow Jones Snapshot
Dow Jones Snapshot A MUST HAVE BRAND WITH OVER 120 YEARS OF A LEADING PROVIDER OF BUSINESS INFORMATION TO HISTORY. THE FINANCIAL, LEGAL, AND CORPORATE MARKETS GLOBALLY. #1 DAILY NEWSPAPER IN THE U.S. BY CIRCULATION COMBINATION OF AUTHORITATIVE JOURNALISM, WITH AVERAGE PRINT AND DIGITAL CIRCULATION O
Slide 25: Three Distinct Revenue Streams
Three Distinct Revenue Streams CONSUMER INSTITUTIONAL CIRCULATION ADVERTISING SUBSCRIPTION REVENUE CONTRIBUTION ~30% ~40% ~30% KEY BRANDS / 1 BUSINESSES JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 25 1 DJX - working project name
Slide 26: Our Consumer Audience - Unrivaled
Consumer Institutional Our Consumer Audience - Unrivaled SIZE • 2,378,827 total U.S. print and digital circulation (AAM) – #1 NEWSPAPER • 3.6 million daily print readers globally • 138mm visits per month to The Wall Street Journal Digital Network BREADTH • OUR CONTENT TRAVELS • OUR CONTENT MATTERS C
Slide 27: Reputation
Consumer Institutional Reputation #1 SELLING NEWSPAPER IN THE U.S. THE WALL STREET JOURNAL HAS WON 35 PULITZER PRIZES #1 MOST TRUSTED NEWSPAPER FOR 27 CONSECUTIVE YEARS (PEW RESEARCH CENTER) 2013 B2B’S MEDIA POWER 50 (TOP 5) #1 The Wall Street Journal #2 Google #1 rank for #3 LinkedIn 14 years in #4
Slide 28: Continuous Content Evolution
Consumer Institutional Continuous Content Evolution BUSINESS / FINANCE EXPANDING CONTENT HISTORICAL FOCUS BROADER AUDIENCE JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 28
Slide 29: 15-Year History of Digital Innovation & Growth
Consumer 15-Year History of Digital Institutional Innovation & Growth 1997: 2010: 2011: 2013: 2013: WSJ is the first Tablet editions of The WSJ Live, an interactive WSJ Portfolio tool is Live Help is launched, national newspaper to Wall Street Journal video application with on- launched, allowing WS
Slide 30: Upward Circulation and Revenue Trends
Consumer Institutional Upward Circulation and Revenue Trends CONSISTENT ANNUAL GAINS IN TOTAL CIRCULATION FOR THE PAST 5 YEARS, WITH CIRCULATION REVENUE CAGR OF 8% OVER THE SAME PERIOD 2,500,000 CIRCULATION – 1999 TO 2012 2,000,000 USA Today The New York Times Los Angeles Times 1,500,000 Daily News
Slide 31: Capturing Revenue From Expanding Geography
Consumer Capturing Revenue From Institutional Expanding Geography LAUNCHED: China - 2002 Japan - 2009 Germany - 2012 Korea - 2012 Indonesia - 2012 Turkey - 2013 COMING SOON: Brazil Spanish Latin America language India 20% OF WSJ DIGITAL TRAFFIC COMES FROM ALREADY LAUNCHED INTERNATIONAL SITES REPLICA
Slide 32: Looking Forward – Pricing Power
Consumer Institutional Looking Forward – Pricing Power PRICING POWER • Ability to increase price • Increase the number of subscribers • Must have content JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 32
Slide 33: Looking Forward – Build a Platform
Consumer Institutional Looking Forward – Build a Platform BUILD A PLATFORM: WSJ Portfolio WSJ Briefcase WSJ Profile Live Help Creates subscriber stickiness Allows targeted advertising Understand our customer Build networking business Leverage into institutional business JUNE 5TH, 2013 INVESTOR DAY -
Slide 34: WSJ Portfolio – Product Snapshot
Consumer Institutional WSJ Portfolio – Product Snapshot LAUNCHED $12 BILLION OF ASSETS SYNCED & LOADED IN 3 MONTHS SINCE LAUNCH • Syncs brokerage accounts in the U.S. • Aggregates all your accounts into one consolidated view • Shows news relevant to you from WSJ and Barron's • Gives you aggregated h
Slide 35: WSJ Profile – Product Snapshot
Consumer Institutional WSJ Profile – Product Snapshot LAUNCHING BRENDA WALKER • Build a network globally of like minded people • Link our customers based on similar interests CHAT WITH BRENDA • BRENDA WALKER Brenda • Participate in the ‘sharing’ economy BRENDA JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 35
Slide 36: Overview of Institutional Business
Consumer Institutional Overview of Institutional Business Real time business news, Leading aggregator Verified venture capital and Data feeds and research for analysis and statistical data in of global business information private equity deal data, customers focused on over 13 languages from over 34
Slide 37: Unique Selling Points of DJX
Consumer Institutional Unique Selling Points of DJX 1 Delivered through a browser Automatically scalable on tablet and mobile Proprietary messaging platform DJ Dominant Supreme customer service Sell and deliver to end user Rapid iterative technological evolution Global sales force WE KNOW HOW TO DO
Slide 38: DJX – Product Snapshot
Consumer Institutional DJX – Product Snapshot 1 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 38 1 DJX - working project name.
Slide 39: Looking Forward – Huge Opportunity
Consumer Institutional Looking Forward – Huge Opportunity LESS THAN 1% OF $40 BILLION INSTITUTIONAL SPEND JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 39 Source: Factiva.com (Online News/Business Information, News Syndicates, Market Research/Opinion Polling, News Dealers/Newsstands, Health Education/Informa
Slide 40: Long-Term Growth Drivers
Consumer Institutional Long-Term Growth Drivers SUBSCRIBER EXPANSION THROUGH GEOGRAPHY SUBSCRIBER PRICE INCREASES TARGETING AND STICKINESS THROUGH APPLICATIONS LEVERAGING PROFILE – BUILD A NETWORKING BUSINESS INCREASE OUR SHARE OF THE LARGE INSTITUTIONAL MARKET JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 4
Slide 41: News International (U.K.)
News and Information Services News International (U.K.) Mike Darcey - CEO of U.K. operations JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 41
Slide 42: News International – Core Editorial Propositions
News International – Core Editorial Propositions THE SUN • 7 day title • National paper within Popular segment • Read by 7mm people per issue THE TIMES • 6 day title (Monday-Saturday) • National paper within Quality segment • Read by 1.3mm people per issue THE SUNDAY • Sunday only title TIMES • Nati
Slide 43: Leadership in the UK
Leadership in the UK • #1 popular title across 7 days by print sales • Mon-Sat print sales of 2,279k vs. Daily Mail of 1,822k • Sunday print sales of 1,924k vs. Mail on Sunday of 1,688k • Fabulous Magazine is most read Sunday supplement • #1 quality Sunday newspaper by print sales • Total print sale
Slide 44: Strategic Direction
Strategic Direction LEADING THE UK INDUSTRY IN RESPONDING TO INDUSTRY TRENDS: Free news sources, new consumption behaviors (digital front-end), new production processes (digital back-office) EDITORIAL • Continuing to invest in a distinctive editorial proposition, differentiated from free alternative
Slide 45: Progress Report #1: The Times & Sunday Times
Progress Report #1: The Times & Sunday Times The Times was a pioneer into paid-for digital subscription (From July 2010) • Now paying dividends with ~25% of paid sales from digital VOLUMES • The Times now has higher total paid sales than pre-paywall levels (2010) THE TIMES - TOTAL PAID SALES (000S)
Slide 46: Progress Report #2: The Sun
Progress Report #2: The Sun The Sun is following in The Times' digital footsteps • Helped by momentum from English Premier League football clip rights PAID-FOR • Will move to fully paid-for in August 2013, focus on: - Converting casual purchasers to subscribers SUBSCRIPTIONS - Converting web visitor
Slide 47: Progress Report #3: Cost Efficiencies & Other Revenues
Progress Report #3: Cost Efficiencies & Other Revenues Progress in cost efficiencies and generating other, related revenue streams BRAND • Sun Bingo and Sun Bet to capitalize on Sun sports heritage including 850k fantasy football players and EPL football clips EXTENSIONS & DIGITAL • The Sunday Times
Slide 48: News International Summary
News International Summary LEADING BRANDS • Unique market position of product • Combining to deliver leadership in quality and popular scale leadership AND PRODUCTS segments in print advertising • Further progress ROBUST CORE • Strong early moves into a digital, paid-for, in the pipeline; additional
Slide 49: News America Marketing
News and Information Services News America Marketing Paul V. Carlucci - Chairman and CEO of News America Marketing JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 49
Slide 50: A Leading Provider of Marketing Solutions
A Leading Provider of Marketing Solutions News America Marketing Has Four Business Components SMARTSOURCE MAGAZINE (FSI) 47% IN-STORE ADVERTISING & PROMOTION 25% DIGITAL, MERCHANDISING, AGENCY, CUSTOM PUBLISHING, DIRECT MAIL 22% INTERNATIONAL 6% % of revenue 1 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 50
Slide 51: SmartSource Magazine
SmartSource Magazine Newspaper DISTRIBUTION Shared Mail CIRCULATION: 74mm 5.4% EDITIONS: 173 NATIONAL ADULT 68% REACH: 94.6% AVERAGE PAGE SIZE: 34 Pages CONTENT MARKET SHARE: 65% 16% • Category Exclusivity 16% • National Media with UNIQUENESS: Targeting Capabilities 68% Packaged Goods Direct Respons
Slide 52: In-Store
In-Store 2 • Promotion RETAIL NETWORK There are 50,000+ retail stores in our network RIGHTS: • Advertising 16,100 16,700 • Coupon Machine • Cart Ads 10,600 PRODUCTS: • Floor Ads 8,250 • At-Shelf Products • Category Exclusivity UNIQUENESS: 46% ACV 2 78% ACV 2 53% ACV 2 • Up-Front Commitment FOOD DRUG
Slide 53: Brand Messages Delivered at the Point of Decision
Brand Messages Delivered at the Point of Decision • Coupon Machine STRONG IN-STORE SALES TRENDS • Carts • Floortalk 2 5 % • Shelftalk • At-Shelf Video • Shelftalk Banner • At-Shelf Sampling FY 2012 FY 2013 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 53 Source: Sales Trend Data As Of May 2013.
Slide 54: Growth In Other Business Segments
Growth In Other Business Segments DIGITAL • SmartSource.com • iPad® and iPhone® Apps • eFSI • MERCHANDISING • AGENCY • CUSTOM PUBLISHING • DIRECT MAIL JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 54 Note: iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries.
Slide 55: Many Growth Levers Across All of Our Segments
Many Growth Levers Across All of Our Segments FREE-STANDING INSERTS IN-STORE GROWTH IN CUSTOM DIGITAL GENERAL NEW CLASSES PUBLISHING & INTERNATIONAL MERCHANDISING INTERNATIONAL INITIATIVES ADVERTISING OF TRADE AGENCY-MODEL TAKING OFF SALES JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 55
Slide 56: Summary
Summary • Exclusivity • Low CPM SMARTSOURCE MAGAZINE • Page Growth • General Advertising • Exclusivity • High ACV IN-STORE • New Class of Trade • New Products • Decision at Point of Sale; Impulse DIGITAL, MERCHANDISING, AGENCY, INTERNATIONAL, • All Segments Profitable and Growing CUSTOM PUBLISHING H
Slide 57: Australia Operations
Australia Operations Kim Williams - Chief Executive of Australian operations JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 57
Slide 58: Australia Operations
Australia Operations • News Limited (Australia) • Foxtel • Fox Sports Australia • Digital Real Estate Services JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 58
Slide 59: Overview of Australian Media Market
Overview of Australian Media Market 1 CONSUMERS AND ADVERTISERS ACTIVELY ENGAGING WITH MULTI PLATFORM EXPERIENCES 2 ECONOMIC OUTLOOK IS INFLUENCED BY CONSUMER AND BUSINESS CAUTION IN RESPONSE TO UNUSUAL DOMESTIC POLITICAL SETTINGS 3 TRADITIONAL MEDIA PLAYERS EXPERIENCING REVENUE CHALLENGES AND RESPO
Slide 60: News Limited: A Portfolio of Leading Australian Media Assets
News Limited: A Portfolio of Leading Australian Media Assets PRINT PUBLISHING DIGITAL / MOBILE BROADCASTT FOX WEBSITE SPORTS PULSE JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 60
Slide 61: News Limited: #1 in Key Categories
News Limited: #1 in Key Categories #1 #1 PREMIUM IN NEWSPAPER BUSINESS PRINT PUBLISHING CIRCULATION DESTINATION #1 #1 FOOD, PARENTING, STV STYLE PROVIDER DESTINATION DIGITAL / MOBILE BROADCASTT #1 #1 ONLINE FOX SPORTS PULSE WEBSITE IN SPORTS REAL ESTATE JUNE 5TH, 2013 INVESTOR DAY - SYDNEY PROGRAMMI
Slide 62: Business Snapshot: Newspapers
PRINT Business Snapshot: Newspapers NATIONAL METRO REGIONAL COMMUNITY JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 62
Slide 63: Business Snapshot: Magazines
PRINT Business Snapshot: Magazines 12 MAGAZINE TITLES READ BY 2,685,000 AUSTRALIANS EVERY MONTH TAKING OFF GROWTH 11 NEWSPAPER INSERT MAGAZINES READ BY 4,901,000 AUSTRALIANS EVERY MONTH IN CUSTOM PUBLISHING & AGENCY-MODEL SALES GENERAL ADVERTISING INTERNATIONAL JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 6
Slide 64: Business Snapshot: News, Business & Opinion
Business Snapshot: News, Business & Opinion DIGITAL AUSTRALIA’S LARGEST PREMIUM, MULTI-PLATFORM NEWS AND BUSINESS PROPOSITION Australia’s #1 brands in news, analysis and opinion JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 64
Slide 65: Business Snapshot: Lifestyle
Business Snapshot: Lifestyle DIGITAL LIFESTYLE BRANDS REACH 7.2 MILLION AUSTRALIANS EVERY MONTH LIFESTYLE BRANDS REACH 7.2 MILLION AUSTRALIANS EVERY MONTH JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 65
Slide 66: Australian Publishing Business - Key Initiatives Going Forward
Australian Publishing Business - Key Initiatives Going Forward CONTINUE TO INVEST IN HIGH QUALITY PREMIUM CONTENT 1 LEVERAGE BRANDS TO EXPAND CONTENT 2 ACROSS NEW DIGITAL PRODUCTS AND PLATFORMS INTEGRATE OUR MEDIA OFFERINGS IN AUSTRALIA AND STRENGTHEN 3 NEWS, BUSINESS, SPORTS AND LIFESTYLE LEADERSHI
Slide 67: 1. Continue To Invest In High Quality Premium Content
1. Continue To Invest In High Quality Premium Content • $60mm investment in Eidos Méthode, a cross-platform publishing solution to deliver content across print, web and mobile devices • Acquired Business Spectator and Eureka Report to bolster business proposition • Increased stake in Foxtel to 50% (
Slide 68: 2. Leverage Brands to Expand Content Across Digital Platforms
2. Leverage Brands to Expand Content Across New Digital Products and Platforms WEBSITE MSITE JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 68
Slide 69: 3. Integrate Our Media Offerings
3. Integrate Our Media Offerings #1 + IN SPORTS PROGRAMMING #1 + + + PREMIUM BUSINESS DESTINATION #1 + + PARENTING, FOOD, STYLE DESTINATION JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 69
Slide 70: 4. Ongoing Transformation to Drive Integration & Efficiencies
4. Ongoing Transformation to Drive Integration & Operational Efficiencies RESULTS OF PROGRESS SO FAR: ✓ ✓ ✓ REDUCED ROLLED OUT COST NUMBER SHARED SERVICES ACROSS SUPPORT FUNCTIONS REDUCTION OF OPERATING THROUGH EFFICIENCY DIVISIONS INITIATIVES ✓ ✓ INTRODUCTION STREAMLINED OF SEVEN DAY AND CUSTOMER-F
Slide 71: 5. Key Products Currently Deliver Subscription Revenue
5. Key Products Currently Deliver Subscription Revenue, with Opportunity for Further Supplementation SOURCE OF SUBSCRIPTION REVENUE ✓ News+ to deliver significant subscription revenue through ✓ monetization of key brands… ✓ ✓ ✓ ✓ JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 71
Slide 72: 5. Integration of Products / New Subscription Services
5. Integration of Products / New Subscription Services COMBINING OUR ...A UNIQUE & COMPELLING EXTRAORDINARY ASSETS... CONSUMER PROPOSITION • Australia’s most • Digital access to all popular mastheads the most popular (7 out of top 10) 1 mastheads • Access to on-line / • #1 sports STV mobile premium
Slide 73: A New National Database Brings Advertisers & Consumers Closer
A New National Database Brings Advertisers & Consumers Closer than Ever Before KEY BENEFITS • Rich data segmentation for advertisers • Deliver attractive and targeted audiences to our advertisers CONSUMERS • Ability to sell by audience • Key metrics such as gender, age, location DATA may now be appl
Slide 74: A New Readership Methodology for Advertisers
A New Readership Methodology Will Give Faster, Richer & More Accurate Data to Advertisers ADVERTISERS & AGENCIES HAVE BEEN CALLING FOR GREATER ACCOUNTABILITY AND TRANSPARENCY New methodology will provide comprehensive view of ... with improved transparency readership… and accountability for advertis
Slide 75: Publishing Summary
Publishing Summary 1 SHIFT OF AUDIENCES FROM PRINT TO MULTI PLATFORM CONSUMPTION 2 ADVERTISING DOLLARS FOLLOWING CONSUMERS INTO MULTI PLATFORM BUYS 3 FOCUS ON NEW PRODUCTS, RECENT INVESTMENTS AND ADVERTISER ACCOUNTABILITY MATCHED WITH TIGHT EFFICIENCY INITIATIVES JUNE 5TH, 2013 INVESTOR DAY - SYDNEY
Slide 76: Australia Operations
Australia Operations • News Limited (Australia) • Foxtel • Fox Sports Australia • Digital Real Estate Services JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 76
Slide 77: Evolution of Australian Broadcast Landscape
Evolution of Australian Broadcast Landscape in Recent Years Has Been Game Changing MAJOR AUSTRALIAN BROADCASTERS 2007 2013 1 FREE TO AIR 5 channels 17 major channels CHANNELS FOXTEL channels with 2 CHANNELS 150+ channels 200+ 26 available in HD FOX SPORTS standard definition channels 3 CHANNELS 6 ch
Slide 78: CMH Transaction Increased News Corp's Stake in Foxtel
CMH Transaction Increased News Corp’s Stake in Leaders of Premium Broadcast Assets BEFORE AFTER NOV 2012 RATIONALE High ARPU TELSTRA TELSTRA 50% 50% Low Churn CMH NEWS Opportunities for growth 25% NEWS 25% 50% Stable cash flow CMH Premium sports content 50% NEWS 100% Integration opportunity NEWS 50%
Slide 79: Foxtel: Leading Australian Subscription TV Provider
Foxtel: Leading Australian Subscription TV Provider Largest pay TV provider in Australia (DTH and cable) Over 2.3m subscribing households (~30% of population) 1 Distribution through cable, satellite and IPTV over tablets, mobile and other internet enabled devices Delivers over 200 channels Low churn
Slide 80: Foxtel Investments in Products & Content
Over the Last 10 Years, Foxtel Has Made Significant Investments in Products & Content Foxtel delivers more than 200 channels including premium sports content from FOX SPORTS Australia Subscribers 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 80
Slide 81: Foxtel Investing in Exclusive and Premium Content
Foxtel Investing in Exclusive and Premium Content Game of Thrones Aussie Pickers (A&E) River Cottage Australia (LifeStyle Channel) Australia’s Next Top Model (FOX8) British Lions Rugby (Fox Sports) House of Cards JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 81
Slide 82: Foxtel Continues to be #1 Source in Major Capital Cities
Foxtel Continues to be #1 Source in Major Capital Cities Share of Total TV Viewing Across 5 City Metro (%) 35 SEVEN NINE TEN ABC 31 26 22 Share % 18 13 9 4 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004* 2005 2006 2007 2008* 2009 2010 2011 2012 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 82 Source: AC
Slide 83: Snapshot: Foxtel 9-Months Financial Performance
Snapshot: Foxtel 9-Months Financial Performance FY 2013, 9 MONTH RESULTS ($US, AS AT MARCH 31, 2013) REVENUE EBITDA ARPU SUBSCRIBER INDEBTEDNESS CHURN $2.4 $675 $99 14% $2.1 BILLION MILLION PER MONTH 1 (ANNUALIZED 9-MO. BILLION 2 RESIDENTIAL CHURN) JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 83 1 Based on
Slide 84: Continued Content and Product Innovation
Continued Content and Product Innovation TV Guide JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 84
Slide 85: Australia Operations
Australia Operations • News Limited (Australia) • Foxtel • Fox Sports Australia • Digital Real Estate Services JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 85
Slide 86: Overview of Australian Sports Media
Overview of Australian Sports Media SPORTS CONTENT IS HIGHLY FAVORED BY AUSTRALIAN 1 AUDIENCES, WITH MAJORITY OF FOXTEL STV HOUSEHOLDS SUBSCRIBING TO FOX SPORTS FOX SPORTS IS AUSTRALIA’S LEADING SPORTS PROGRAMMING 2 PROVIDER, AND OWNS EXCLUSIVE RIGHTS TO MANY OF THE MOST POPULAR SPORTS. COMPETITORS
Slide 87: FOX SPORTS: Leading Sports Programming Provider
FOX SPORTS: Leading Sports Programming Provider ✓ Exclusive broadcasting rights to highly popular sports programming Average of 23 hours of live sports ✓ per day (8,300+ hrs annually) available to 2.3m homes ✓ 7 standard definition channels, 5 of which are available in HD JUNE 5TH, 2013 INVESTOR DAY
Slide 88: FOX SPORTS Innovation
FOX SPORTS Innovation PURPOSE BUILT ENHANCED SHANE WARNE AUGMENTED HD STUDIOS LIVE COVERAGE COMMS LINK SCREEN HELMET CAM FOXKOPTER “ZING” STUMPS SEGWAY JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 88
Slide 89: Portfolio of Major Sports Rights
Portfolio of Major Sports Rights OUR LAST SEASON PROPOSITION CONTRACTED AUSTRALIAN RULES • Every game of regular season live FOOTBALL • Finals live (excl. the Grand Final) 2016 • 5 live games per week (regular round) RUGBY LEAGUE • Replay rights for all games 2017 • Every game of A-League and EPL SO
Slide 90: FOX SPORTS Australia Financial Profile
FOX SPORTS Australia Financial Profile HISTORICAL FY REVENUE (US$MM) 484 KEY DRIVERS LONG-TERM 373 444 375 OPPORTUNITIES 355 • Invest in key sports entertainment content and broadcast quality 2010 2011 2012 9M 2012 9M 2013 • Expand distribution across % Growth 19.0% 9.0% 5.6% multiple media platform
Slide 91: Digital Real Estate Services
Digital Real Estate Services Greg Ellis - CEO and Managing Director of REA Group JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 91
Slide 92: REA: Leading Real Estate Digital Advertising Business
REA: Leading Real Estate Digital Advertising Business Operates largest residential property ✓ website in Australia 2 3 4 Over 40% NPAT CAGR ✓ over the last 10 years 1 ✓ 19.4m visits (per month) 1 realestate.com.au; realcommercial.com.au; REA media Also operates market-leading 2 atHome.lu; atHome.de;
Slide 93: REA Positioned as #1 in the Australian Market
REA Positioned as # 1 in the Australian Market CLOSEST OUTPERFORMING COMPETITOR THE COMPETITION 19.4 million visits 1 Desktop visits = average number of times per month a person interacts or returns to site having left for more than 30 min. 8.0m 1 2.4x 176,396 total time on site (000’s mins) 2 44,30
Slide 94: REA is Central To the Needs of Consumers, Customers & Vendors
REA is Central To the Needs of Consumers, Customers & Vendors MADE POSSIBLE BY THE TRANSITION FROM A SUBS BUSINESS TO A LISTINGS BUSINESS TO A BUSINESS CENTERED ON THE ENTIRE PROPERTY LIFE-CYCLE CONSUMER 1 VENDOR CUSTOMER JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 94 1 Customers refers to Agents, Property
Slide 95: REA Operates Throughout the Property Lifecycle
REA Operates Throughout the Property Lifecycle 2 BUY & LEASE EXISTING PROPERTY 1 3 CUSTOMER NEW DIGITAL PROPERTY OFFICE PROPERTY LIFECYCLE 6 4 DATA & ANALYTICS RENOVATE 5 FINANCE PROPERTY JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 95
Slide 96: Extensive Product Suite Across Digital Properties
Extensive Product Suite of Subscription, Listing & Brand Products Across Digital Properties SUBSCRIPTION LISTINGS BRAND PRODUCTS PRODUCTS EXAMPLES EXAMPLES EXAMPLES • Standard • Feature • Exclusive Property agent • Platinum showcase • Highlight • Diamond • Banners Property • Premier • Feature Agent
Slide 97: Growth Record
Growth Record 1 HISTORICAL FY REVENUE (US$MM) FY SEGMENT EBITDA (US$MM) CAG R 18% US$286 US$235 CAGR 2 4% US$172 US$129 US$102 US$67 2010 2011 2012 2010 2011 2012 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 97 1 Non-GAAP financial measures. EBITDA is defined as revenue less operating expenses and selling,
Slide 98: REA Strategy Focused on Continued Growth & Expansion
REA Strategy Focused on Continued Growth & Expansion 1 REMAIN MARKET LEADING DIGITAL MEDIA BUSINESS THROUGH A FOCUS ON CONTINUOUS INNOVATION AND INVESTMENT IN TECHNOLOGY 1 2 GROWTH OF ARPA THROUGH ACCELERATED GROWTH OF VALUE ADDED PRODUCTS 3 FOCUS ON MOBILE FUNCTIONALITY AND MONETIZING MOBILE TRAFFI
Slide 99: Australian Linkages
Australian Linkages AUSTRALIAN BUSINESS WELL POSITIONED 1 TO BENEFIT FROM THE STRUCTURAL MOVE OF PRINT REAL ESTATE ADVERTISING TO DIGITAL ABILITY OF WIDER NEW NEWS CORP SERIES 2 OF BUSINESSES TO BENEFIT FROM DIGITAL AND PRODUCT DEVELOPMENT EXPERTISE OF REA PERSONNEL STRONG CASH GENERATION 3 OF REA A
Slide 100: Digital Real Estate Services Financial Profile
Digital Real Estate Services Financial Profile HISTORICAL FY REVENUE (US$MM) US$286 KEY DRIVERS LONG-TERM US$235 US$211 US$254 OPPORTUNITIES US$172 • Grow ARPA through accelerated growth of value-added products 2010 2011 2012 9M 2012 9M 2013 % Growth 36.6% 21.7% 20.4% • Growth of mobile revenue and
Slide 101: Australian Operations Summary
Australian Operations Summary #1 AUSTRALIAN MEDIA COMPANY... 1 ...AND EXPANDING DIVERSIFIED PORTFOLIO OF LEADING MEDIA ASSETS... 2 ...AND CONTINUING TO INNOVATE AND INVEST CATEGORY LEADERSHIP IN NEWS, BUSINESS, SPORTS AND LIFESTYLE CATEGORIES... 3 ...INTEGRATING OUR MEDIA OFFERINGS AND STRENGTHENING
Slide 102: News and Information Services Financial Profile
News and Information Services Financial Profile JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 102
Slide 103: News and Information Services Financial Profile
News and Information Services Financial Profile HISTORICAL FY REVENUE ($MM) KEY DRIVERS LONG-TERM $226mm loss of NoTW revenue US$7,242 US$7,576 OPPORTUNITIES US$7,058 US$5,325 US$5,069 • Premium content and trusted brands • Effective subscriber 2010 2011 2012 9M 2012 9M 2013 management / pricing % G
Slide 104: Book Publishing
Book Publishing Brian Murray - President and CEO of HarperCollins JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 104
Slide 105: HarperCollins: Second Largest English Language Consumer Publisher
Harper Collins: Second Largest English Language Consumer Publisher $1.2 billion revenue in FY2012 #1 Christian Publisher / Leader in Children’s and Fiction Publishing operations in the U.S., Canada, U.K., Australia, New Zealand and India Over 200 best sellers published each year Leader in digital in
Slide 106: Major Brands / Titles / Authors
Major Brands / Titles / Authors JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 106
Slide 107: Twelve Consecutive Years of Children's NY Times Best Sellers
Twelve Consecutive Years with Greatest Number of Titles on Children’s NY Times Best Sellers JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 107
Slide 108: #1 Christian Publisher
#1 Christian Publisher JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 108
Slide 109: Positive Market Trends For Book Publishers
Positive Market Trends For Book Publishers OVERALL BOOK CONSUMPTION PRINT & DIGITAL PROJECTIONS PUBLISHING INDUSTRY Reading Digital Revenues Books Purchased Print Profits Combined Margins Working Capital Efficiency JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 109
Slide 110: Book Publishing Undergoing Massive Digital Transformation
Book Publishing Undergoing Massive Digital Transformation FIVE GLOBAL t h 350 E-BOOK PLAYERS U.S. E-BOOK SALES 0% Gr ow 100 25 GROWTH 1 Q1 FY10 Q4 FY12 wth o Gr + % 100 150 2 70 E-BOOK STOREFRONTS 3 CURRENT IN ONE YEAR wth 64 o Gr + % 3 500 10 U.S TABLET USERS Q1 FY10 Q4 FY12 JUNE 5TH, 2013 INVESTOR
Slide 111: Global Market for Books Remains Steady & Growing
Global Market for Books Remains Steady & Growing $mm % E-Book 80,000 2% 3% 6% 10% 14% 18% 23% 28% 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2009 2010 2011 2012 2013 2014 2015 2016 Print E-Book JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 111 Source: 2011 PricewaterhouseCoopers LLP, Wilkofsky Gruen
Slide 112: HarperCollins is Well Positioned within the Publishing Industry
HarperCollins is Well Positioned within the Publishing Industry Sell Books & License rights 100,000 Active print & e-books in over 100 countries 57% revenues from 12 Consecutive Years greatest number #1 Top 15 Customers of Titles Children’s NYT Bestsellers Christian Publisher 50% of revenues are 20%
Slide 113: HarperCollins Core Strategies
HarperCollins Core Strategies INVEST IN FICTION, 1 CHILDREN’S & RELIGION DRIVE GROWTH THROUGH 2 DIGITAL TRANSFORMATION EXPAND INTERNATIONALLY 3 DRIVE PROFITABILITY 4 IN CORE PRINT BUSINESSES JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 113
Slide 114: 1. Invest in Fiction, Children's & Religion
1. Invest in Fiction, Children’s & Religion FICTION CHILDREN’S 100 IP Projects RELIGION 140 Million Impressions 16 Million Unique Visitors JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 114
Slide 115: 2. Drive Growth Through Digital Transformation
2. Drive Growth Through Digital Transformation NEW PRODUCTS INCREASE IN % OF REVENUES E-BOOK FROM E-BOOKS DIGITAL FIRST STOREFRONTS 21.3% 1.1% Q3 2009 Q3 2013 DYNAMIC EXPAND PRICING E-BOOK CATALOG JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 115
Slide 116: 2. Improving Profitability Through Better Unit Economics
2. Improving Profitability Through Better Unit Economics • E-books rapidly growing ILLUSTRATIVE UNIT ECONOMICS • Historically, as e-books replaced HARDCOVER TITLE HARDCOVER E-BOOK AGENCY print books, revenues declined Retail price $27.99 US$14.99 slightly on a title by title basis Publisher’s Share
Slide 117: 3. Expand Internationally
3. Expand Internationally INVEST TO PUBLISH, SELL, MARKET AND DISTRIBUTE ALL AUTHORS IN ALL KEY MARKETS JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 117
Slide 118: 4. Drive Profitability in Core Print Businesses
4. Drive Profitability in Core Print Businesses WAREHOUSE 2012 2013 2014 EFFICIENCIES EXPAND POD JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 118
Slide 119: Book Publishing Financial Profile
Book Publishing Financial Profile 1 ADJUSTED FY REVENUE KEY DRIVERS LONG-TERM US$1,234 US$1,195 US$1,189 US$1,040 OPPORTUNITIES US$899 • Accelerating digital strategy to benefit from higher operating 2010 2011 2012 9M 2012 9M 2013 profit margins % Growth (3.2)% (0.5)% 15.7% • Invest in Fiction, Chil
Slide 120: Education
Education Joel I. Klein - CEO of Amplify JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 120
Slide 121: We Have a Productivity Problem in K-12 Education
We Have a Productivity Problem in K-12 Education US per student spending vs. student performance, 1970-2008 (12th Grade) JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 121 Source: NCES. Digest of Education Statistics, 2011; National Assessment of Educational Progress (NAEP), Long Term Trends, 2012
Slide 122: Schools Have Not Changed with the Times
Schools Have Not Changed with the Times JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 122
Slide 123: Large Market Ripe for Disruption
Large Market Ripe for Disruption OUR ADDRESSABLE MARKET TODAY IS SIGNIFICANT 1 $40B $17B on purchased on instructional products and materials and services technology 2 A MODEST REALLOCATION OF RESOURCES MAKES THE MARKET EVEN MORE ATTRACTIVE If only 50% of this reallocation were invested in instructi
Slide 124: Key Drivers of the Amplify Opportunity
Key Drivers of the Amplify Opportunity 1 45 STATES WILL ADOPT THE COMMON CORE STANDARDS BY 2014 “[The Common Core] will require states to change just about everything: curriculum, principal and teacher training, textbooks.” New York Times Editorial, May 28, 2013 THERE IS A SIGNIFICANT GREYING AND GR
Slide 125: Business Model
Business Model AMPLIFY IS BUILDING ON THE FOUNDATION OF A 12-YEAR-OLD BUSINESS SERVING EDUCATORS IN ALL 50 STATES, INCLUDING 40% OF THE TOP 200 SCHOOL DISTRICTS. Analytics and assessment Cross platform, core curriculum Tablet-based distribution products and services. in Reading, Math and Science. pl
Slide 126: Extending Our Leadership in Assessment and Analytics
Extending Our Leadership in Assessment and Analytics Founded in 2000 as Wireless Generation (acquired in 2011 for $390 million) Market leader in educational analytics and assessment Serving over 3 million students throughout the country Product areas: Assessment and Analytics Enterprise Data Systems
Slide 127: Developing Digitally-native, Best-in-class Curriculum
Developing Digitally-native, Best-in-class Curriculum Cross platform, core curricula K-12 Reading, Math and Science Software licenses: Immersive and rigorous learning experiences Learning orchestration Sophisticated analytics Digital games JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 127
Slide 128: Establishing a Market-Leading Distribution Platform for Education
Establishing a Market-Leading Distribution Platform for Education Open tablet-based platform Optimized for the K-12 market Subscription-based bundle: Affordable high-end tablets Connectivity for anywhere, anytime learning Curated third-party content Operating system for education with mobile device
Slide 129: Progress to Date
Progress to Date • Launched category-defining product • Piloted platform with 2,500 users • Secured major agreement with AT&T and anchor content partners • Piloted digital content with 2,500 users • Produced key elements, including lessons, games, simulations, and media • Landed multiple statewide d
Slide 130: Key FY14 Initiatives
Key FY14 Initiatives • Deliver service to 20,000 subscribers • Scale platform and prove business model • Scale technology and launch product • Bring to market three paradigm-shifting digital courses in English and Science • Deliver on key customer contracts • Align all product and services to the Co
Slide 131: Historical Financials
Historical Financials HISTORICAL FY REVENUE ($MM) US$100 US$75 • Now achieving $100M in US$50 revenues, with 22% average annual growth rate over the past 5 years. US$25 • Investments in infrastructure and new offerings. 2003 2006 2009 2012 JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 131
Slide 132: A Disciplined Investment
A Disciplined Investment 1 FY13 INVESTMENTS, USD MILLIONS JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 132 1 Represents estimated FY2013 loss before income taxes.
Slide 133: Amplify's Advantage
Amplify’s Advantage BALANCED INVESTMENT OPPORTUNITY 1 FOR THE DISRUPTIVE INNOVATION OF EDUCATION NO LEGACY PUBLISHING BUSINESS TO CANNIBALIZE 2 TRACK RECORD OF SUCCESS IN K-12 EDUCATION MARKET 3 FOUNDATION IN EDUCATION DATA AND ANALYTICS 4 CONTENT AND CURRICULUM BUILT FOR A DIGITAL WORLD 5 DISTRIBUT
Slide 134: Financial Overview
Financial Overview Bedi A. Singh - CFO of new News Corp JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 134
Slide 135: Distinctive Portfolio of Complementary Media & Information Services Assets
Distinctive Portfolio of Complementary Media & Information Services Assets Premium Content & #1 Media Franchise Iconic Brands in Australia KEY FINANCIAL HIGHLIGHTS: ✓ Significant scale and diversification ✓ Substantial free cash flow generation Valuable Linkages ✓ Strong debt-free balance sheet Pion
Slide 136: Value Driven by Diversified & Distinctive Portfolio of Assets
Value Driven by Diversified & Distinctive Portfolio of Assets NEWS AND CABLE DIGITAL REAL REPORTING INFORMATION + NETWORK + ESTATE BOOK + PUBLISHING + OTHER SEGMENTS SERVICES PROGRAMMING SERVICES 61.6% CONSOLIDATED STAKE AMPLIFY AND CORPORATE PF FY12 REVENUE ($MM)1 $7,058 $486 Market Cap: $3.7bn2 $2
Slide 137: Combination of Steady & High Growth Businesses with Multiple Growth Pillars
Combination of Steady & High Growth Businesses with Multiple Growth Pillars LONG-TERM OPPORTUNITIES GROWTH PILLARS REVENUE MARGINS Grow subscription revenue NEWS AND Accelerate digital monetization INFORMATION SERVICES Utilize scale to drive cost efficiencies Leverage brands across new digital produ
Slide 138: Comprised of Diverse Sources of Revenue
Comprised of Diverse Sources of Revenue 1 1. WAYS WE MONETIZE BRANDS 2. BUSINESS SEGMENTS Consumer and Other 18% 13% Book Publishing 77% 30% 48% from News and Information News and Circulation & 52% Services Advertising Information Services 5% Cable Network Programming Subscription Advertising 3% Dig
Slide 139: Combination of Businesses Drives Significant Scale & Profitability
Combination of Businesses Drives Significant Scale & Profitability PROFORMA REVENUE (mm)1 PROFORMA EBITDA (mm)1 YEAR ENDED 9 MONTHS ENDED YEAR ENDED 9 MONTHS ENDED JUNE 30, 2012 MARCH 31, 2013 JUNE 30, 2012 MARCH 31, 2013 News and Information Services $7,058 $5,069 $939 US$584 Cable Network Programm
Slide 140: Free Cash Flow Available to New News Corp
Free Cash Flow Available to New News Corp YEAR ENDED JUNE 30, 2012 NET CASH PROVIDED BY OPERATING ACTIVITIES (FORM 10) $ 851 Less: Capital Expenditures -(375) 476 Less: REA Free Cash Flow1 (79) - Plus: Cash Dividend from REA 11 FREE CASH FLOW AVAILABLE TO NEW NEWS CORP $ 408 JUNE 5TH, 2013 INVESTOR
Slide 141: Disciplined Capital Investment & Focus on Increased Cost Efficiencies
Disciplined Capital Investment & Focus on Increased Cost Efficiencies CAPITAL EXPENDITURES ($ IN MILLIONS) RESTRUCTURING CHARGES ($ IN MILLIONS) GOING FORWARD: US$549 ~80% of capital expenditures focused on US$311 technology and information systems US$231 US$375 FY11 FY12 FY09-FY12 9 MONTHS ENDED MA
Slide 142: Well Capitalized Balance Sheet Provides Flexibility
Well Capitalized Balance Sheet Provides Flexibility SELECTED ASSETS: AMOUNT(mm) AS OF: Cash US$2,560 Expected at separation Foxtel Subordinated Note US$462 March 31, 2013 Long-Term Secured Note1 US$152 Expected at separation Goodwill3 US$3,188 March 31, 2013 Intangibles3 US$3,296 March 31, 2013 SELE
Slide 143: Long-Term Balanced Approach to Investing & Returning Capital
Long-Term Balanced Approach to Investing & Returning Capital • Maintain premium content to sustain leadership positions DISCIPLINED ORGANIC • Develop new and innovative digital products and services INVESTMENT • Invest in innovative technologies to efficiently develop, distribute and monetize conten
Slide 144: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations JUNE 5TH, 2013 INVESTOR DAY - SYDNEY 144
Slide 145: Total EBITDA: GAAP to Non-GAAP Reconciliation
Total EBITDA: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Total Revenues US$6,634 US$6,520 US$8,654 US$9,095 US$8,752 Operating Expenses (4,040) (3,849) (5,122) (5,234) (5,008) Selling, General and (2,036) (2,069) (2,750) (2,6
Slide 146: News and Information Services: GAAP to Non-GAAP Reconciliation
News and Information Services: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Advertising US$2,927 US$3,324 US$4,388 US$4,694 US$4,452 Circulation and 1,785 1,749 2,326 2,522 2,467 Subscription Other 357 252 344 360 323 Total Rev
Slide 147: Cable Network Programming: GAAP to Non-GAAP Reconciliation
Cable Network Programming: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, 2013 Advertising US$23 Circulation and Subscription 150 Other 5 Total Revenues US$178 Operating Expenses (123) Selling, General and Administrative (11) Segment EBITDA US$44 JUNE 5TH, 2013 INVESTOR DAY
Slide 148: Digital Real Estate Services: GAAP to Non-GAAP Reconciliation
Digital Real Estate Services: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Total Revenues US$254 US$211 US$286 US$235 US$172 Selling, General and (132) (118) (157) (133) (105) Administrative Segment EBITDA US$122 US$93 US$129 U
Slide 149: Book Publishing: GAAP to Non-GAAP Reconciliation
Book Publishing: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Consumer US$969 US$849 US$1,123 US$1,124 US$1,153 Other 71 50 66 71 116 Total Revenues US$1,040 US$899 US$1,189 US$1,195 US$1,269 Operating Expenses (771) (659) (886
Slide 150: Other: GAAP to Non-GAAP Reconciliation
Other: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Advertising US$17 US$14 US$19 US$16 US$15 Circulation and 30 29 39 27 10 Subscription Other 46 42 63 46 44 Total Revenues US$93 US$85 US$121 US$89 US$69 Operating Expenses (38
Slide 151: Fox Sports Australia: GAAP to Non-GAAP Reconciliation
Fox Sports Australia: GAAP to Non-GAAP Reconciliation ($ in millions) 9 Months Ended March 31, Year Ended June 30, 2013 2012 2012 2011 2010 Operating Income US$101 US$105 US$137 US$135 US$126 Add: Depreciation and 8 7 9 9 7 Amortization EBITDA US$109 US$112 US$146 US$144 US$133 JUNE 5TH, 2013 INVEST
Slide 152: Free Cash Flow Available to New News Corp: Reconciliation
Free Cash Flow Available to New News Corp: GAAP to Non-GAAP Reconciliation ($ in millions) Year Ended June 30, 2012 Net Cash Provided by Operating Activities US$851 Less: Capital Expenditures (375) Less: REA Free Cash Flow1 (79) Plus: Cash Dividend from REA 11 Free Cash Flow Available to New News Co