TIME — Stephens Conference 2017
26 slides from TIME's conference presentation, Jun 6, 2017
Slide 1: Stephens Conference Management Presentation June 2017
Stephens Conference Management Presentation JUNE 2017
Slide 2: Caution Concerning Forward Looking Statements and Non-GAAP Financial Measures
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 “
Slide 3: Time Inc. at a glance
Time Inc. 120MM+ monthly global print 4 170MM+ monthly global print and digital 3 Hundreds of events annually 265MM+ via global social media 250MM+ U.S. consumer registrations 3x Video production growth since 2014 ~30MM Subscribers 4.6B (2016) video starts Top 10 U.S. Digital Media Property2 Massive
Slide 4: Experiencing Explosive Growth
- 50 100 150 200 250 300 M ill io n s Snapchat Flipboard LinkedIn Youtube Pinterest Instagram Google Plus Twitter Facebook 365 446 490 605 826 1,003 1,251 1,507 2,622 1,105 0 500 1,000 1,500 2,000 2,500 3,000 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Apr-17 100,000 105,000 110,000 115,000 120,000
Slide 5: Diverse Set of Influential Iconic Brands
Diverse Set of Influential Iconic Brands Covering virtually every interest and passion CELEBRITY & ENTERTAINMENT NEWS & BUSINESS SPORTS LIFESTYLE 90MM CONSUMERS 1 66MM CONSUMERS 1 76MM CONSUMERS 1 74MM CONSUMERS 1 A/E: Add TI UK brands, plus Time and Fortune Asia 5 Source: 1) comScore Multi-Platform
Slide 6: Entertainment brands
Print & Digital Audience2 65% Female2 53MM 55MM 47MM 90MM Print Audience3 67% Female3 UVs1, 33% 18-341 Social Footprint entertainment CATEGORIES 6 Sources: 1) comScore Multi-Platform April 2017; 2) 2017 comScore Multi-Platform GfK/MRI Fusion (3-17/Fall 2016); 3) MRI Fall 2016; 4) comScore Multi-Plat
Slide 7: Lifestyle brands
Print & Digital Audience2 69% Female2 48MM 48MM 86MM 74MM Print Audience3 73% Female3 UVs1 35% 18-341 Social Footprint lifestyle CATEGORIES 7 Sources: 1) comScore Multi-Platform April 2017; 2) 2017 comScore Multi- Platform /GfK/MRI Fusion (3-17/Fall 2016); 3) MRI Fall 2016; 4) 2016 Fall GfK MRI; 5)
Slide 8: News & Business brands
U.S. Print & Digital Audience1 33% 18-341 23MM 49MM 51MM 66MM U.S. Print Audience2 40% HH Income >$100K2 U.S. UVs3 37% 18-343 Social Footprint news & business CATEGORIES 8 Sources: ; 1) 2017 comScore Multi-Platform GfK/MRI Fusion (3-17/Fall 2016); 2) MRI Fall 2016 ; 3) comScore Multi-Platform April
Slide 9: Sports brands
40MM U.S. Print & Digital Audience2 31% 18-342 21MM 76MM 67MM U.S. Print Audience3 37% HH Income >$100K3 Social Footprint U.S. UVs1 31% 18-341 CATEGORIES sports 9 Sources: 1) comScore Multi-Platform April 2017; 2) GfK/MRI Fusion (3-17/Fall 2016); 3) MRI Fall 2016; 4) PIB April 2017 #2 U.S. digital a
Slide 10: Publisher to Platform
Publisher to Platform
Slide 11: Aggressive Transformation from Publisher to Platform
FROM SILOED BRANDS AND SUBSIDIARIES . . . Decentralized Holding Company Model 11 . . . TO INTEGRATED PLATFORMS Built for Scale, Integrated, and Supporting the Consumer Brand “Front Doors” Aggressive Transformation from Publisher to Platform Fragmented organizational structure and infrastructure Diff
Slide 12: Our Assets Work as One Platform Across All Brands
Our Assets Work as One Platform Across All Brands, Which Enables Scale and Faster Growth Consumers have deep relationships with our brands, but our company builds capabilities and goes to market as one platform Our consumer “front doors” are globally recognized brands, and they are growing audience
Slide 13: Expanding our Brands in Multiple Dimensions
1 3 Multi-Media Content Multimedia Content Engine TV Programming / OTT Brand Licensing / Affiliate Events & Live Media Hundreds of stories, videos and photo galleries every day Thousands of posts/day on social Thousands of print editorial pages / month Publishing everywhere in all formats (AMP, IA,
Slide 14: Reorganized to Break Down Silos & Increase Collaboration
Reorganized to Break Down Silos & Increase Collaboration Significant changes to position us for greater cross-platform success • Unified editorial enables sharing content across the entire portfolio and seamlessly implementing changes and innovation. • All digital editors have joint reporting to bra
Slide 15: Integrated Sales Team Brings the Best of the Portfolio to Clients
Integrated Sales Team Brings the Best of the Portfolio to Clients 1 5 Centers of Excellence Support Reps Across Products VIDEO TI Studios & Food Studios Private exchange capability with all major trading desks, DSPs, and DMPs 1) Centralized Sales: Focused on eleven customer categories 2) Enterprise
Slide 16: Consumer Marketing Works Across the Enterprise
Event Ticketing Print Subscriptions Consumer Marketing Now Works Across the Enterprise to Support All Areas of Growth (Ad sales, product testing) (Sales, inventory management, distribution) (Acquisition, renewal, customer service) (Synapse, BizRates Insights) DIGITAL AD CHANNELS (SEM, Social, Ads) O
Slide 17: Key Growth Areas
Key Growth Areas
Slide 18: Native / Branded Content
The Foundry has established a strong reputation for native, and it is organized for category expertise and to build content across print and digital. Time Inc. native revenues grew almost 2x from 2015 to 2016. Our sales team is experienced in selling content creation and distribution, our most credi
Slide 19: Video
19 Time Inc. Video is attracting fans at a record rate, including an entirely new generation of viewers. In 2017, we plan to produce more than 50,000 videos - including 150 new and returning franchises and series, and over 1,500 live programming hours. In April 2017, we achieved more than one billio
Slide 20: People-Based Data & Targeting with Viant
The average U.S. household owns 7.8 Internet-connected devices1, but marketers typically can identify only one of them during Web visits, making it challenging to optimize frequency and measure ROI. Time Inc. + Viant is a competitor to the “walled gardens” and the only “web publisher” to have this d
Slide 21: Brand Extensions
21 Brand Extensions Extending Time Inc.’s brands to products worldwide, and monetizing against our existing editorial Brand Licensing TV & Long Form Events 21 Time Inc. Productions is a full-service production company leveraging Time Inc.’s iconic brands to create and monetize original programming T
Slide 22: Financial Highlights
Financial Highlights
Slide 23: 1Q17 Financial Highlights
1Q17 Financial Highlights 23 Total revenues $636 million Print advertising revenues $212 million Digital advertising revenues $119 million Circulation revenues $205 million Other Revenues $100 million Operating Loss of $26 million Adjusted OIBDA of $23 million Quarter-end cash, cash
Slide 24: Appendix
Appendix
Slide 25: Reconciliation of Operating Income (Loss) to Adjusted OIBDA
25 (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 the deferred gain from the sale-leaseback of the Blue Fin Building that was completed in the fourth quarter
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