TIME

TIME — Q2 2017 Earnings Presentation

17 slides from TIME's earnings presentation, Aug 8, 2017

1. Slide 1: 2Q 2017 Earnings Presentation

   2Q 2017 Earnings Presentation August 8, 2017

2. Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP Financial Measures

   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 management’s current

3. Slide 3: 2Q17 Financial Highlights

    Total revenues declined 10% year-over-year; excluding FX, total revenues would have declined 8% year-over-year .  Print and other advertising revenues declined 17% year-over-year including approx. 100 bps of adverse impact related to FX.  Digital advertising revenues declined 2% year-over-year.

4. Slide 4: 2Q17 Advertising Revenues

   $299 $249 $127 $125 2016 2017 Digital Advertising Print and Other Advertising 2Q17 Advertising Revenues  Total advertising revenues down 12% - Print and other advertising revenues down 17% - Digital advertising revenues down 2% $426 $374 4 HIGHLIGHTS 2Q 2Q $MM Revenues Revenues

5. Slide 5: 2Q17 Circulation Revenues

   $154 $141 $74 $58 $8 $8 Other Circulation Revenues Newsstand Revenues Subscription Revenues  Total Circulation revenues down 12% - Subscription revenues down 8% - Newsstand revenues down 22% $MM $236 $207 2Q17 Circulation Revenues HIGHLIGHTS 2Q16 2Q17 5

6. Slide 6: 2Q17 Other Revenues

   2Q17 Other Revenues  Other revenues up 6% $107 $113 HIGHLIGHTS 2Q16 2Q17 $MM 6

7. Slide 7: 2Q17 Costs of Revenues and SG&A Expenses

   $357 $313 $330 $301 Costs of Revenues (COR) Selling, General & Administrative Expenses (SG&A) 2Q17 Costs of Revenues and SG&A Expenses  COR and SG&A combined down 11% - Other costs include transaction-related expenses, as well as integration and transformation costs, which are excluded from our Adj

8. Slide 8: 2Q17 Adjusted OIBDA

   1 2 2Q17 Adjusted OIBDA $89 $88  2Q17 Operating loss of $38 million vs. Operating income of $50 million in the prior year  2Q17 Adjusted OIBDA of $88 million vs. $89 million in the prior year  2Q17 Diluted Net Loss Per Share of $(0.44) vs. Diluted Net EPS of $0.18 in the prior year  2Q17 Adjuste

9. Slide 9: 2Q17 Cash Update

   2Q17 Cash Update HIGHLIGHTS  2Q17 ending cash and cash equivalents of $269 million  Cash provided by operations of $36 million  Quarterly dividend of $0.04 per share, or $4 million, paid on 6/15/17  As of 6/30/17, net leverage ratio of 2.47x - Target net leverage ratio 2.0x to 2.5x 9 CHANGES IN

10. Slide 10: Q&A

    Q&A

11. Slide 11: Appendix

    Appendix

12. Slide 12: Reconciliation of Operating Income (Loss) to OIBDA and Adjusted OIBDA

    12 (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) (Gain) loss on operating assets, net primarily reflects the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale- leaseback of the Blue Fin Bu

13. Slide 13: Reconciliation of Net Income (Loss) to Adjusted Net Income

    13 TIME INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited; in millions) Schedule II (1) (Gain) loss on operating assets, net primarily reflects the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale-leaseback of the Blue Fin Buildin

14. Slide 14: Reconciliation of Diluted EPS to Adjusted Diluted EPS

    Schedule III TIME INC. RECONCILIATION OF DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited; all per share amounts are net of tax) (1) (Gain) loss on operating assets, net primarily reflects the recognition of a gain on sale of certain of our titles and of the deferred gain from the sale-leaseback of th

15. Slide 15: Reconciliation of Cash Provided by Operations to Free Cash Flow

    15 TIME INC. RECONCILIATION OF CASH PROVIDED BY (USED IN) OPERATIONS TO FREE CASH FLOW (Unaudited; in millions) Schedule IV (1) Free cash flow is defined as Cash provided by (used in) operations, less Capital expenditures. Capital expenditures for the three and six months ended June 30, 2017 reflect

16. Slide 16: Reconciliation of Operating Income to Adjusted OIBDA - 2017 & 2021 Outlook

    16 Schedule V TIME INC. RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OIBDA - 2017 & 2021 OUTLOOK (Unaudited; in millions) (1) Adjusted OIBDA is defined as OIBDA adjusted for impairments of Goodwill, intangible assets, fixed assets and investments; Restructuring and severance costs; (Gain) l

17. Slide 17: 2Q 2017

    2Q 2017 Earnings Presentation August 8, 2017

Time — Q2 2017 Earnings Presentation on 6ix