TIME — Investor Presentation (November 2017)
26 slides from TIME's investor presentation, Nov 17, 2017
Slide 1: Management Presentation November 2017
Management Presentation November 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: Today's Participants
Sue D’Emic EVP and Chief Financial Officer With over 30 years’ experience in finance and accounting, Sue has served in a variety of senior accounting and finance positions, including at Trusted Media Brands Sue also oversees Technology, Production and Time Inc. India Today’s Participants 3 Rich Batt
Slide 4: Overview
Overview
Slide 5: Massive Audience and Scale
120MM+ monthly global print 3 230MM+ global print and digital 6 Hundred s of events annually 274MM+ via global social media 250MM+ U.S. consumer registrations 3x Video production growth since 2014 ~30MM Subscribers4 4.6B (2016) video starts Top U.S. Digital Media Property1 U.S. Multi-Platform Monthl
Slide 6: Experiencing Significant Growth
100,000 105,000 110,000 115,000 120,000 125,000 130,000 135,000 140,000 145,000 - 50 100 150 200 250 300 M a y- 1 4 J u n -1 4 J u l- 1 4 A u g -1 4 S e p -1 4 O c t- 1 4 N o v- 1 4 D e c- 1 4 J a n -1 5 F e b -1 5 M a r- 1 5 A p r- 1 5 M a y- 1 5 J u n -1 5 J u l- 1 5 A u g -1 5 S e p -1 5 O c t- 1
Slide 7: Diverse Set of Influential Iconic Brands
Diverse Set of Influential Iconic Brands Covering virtually every interest and passion CELEBRITY & ENTERTAINMENT NEWS & BUSINESS SPORTS LIFESTYLE Source: 1) comScore Multi-Platform//GfK/MRI Fusion (7-17/Spring 2017) ; 2) comScore Multi-Platform September 2017 Time Inc. Brands Over-Index with Millenn
Slide 8: Growth Strategy and Recent Strategic Initiatives
Sustaining the strength of our print products Growing our large digital revenues Extending our brands through high-margin and high-value areas, such as events, licensing, TV and international Expanding the ARPU of our ~30 million total subscribers with other products and services Building our progra
Slide 9: Strategic Transformation Program
Strategic Transformation Program
Slide 10: Strategic Transformation Program
CONFIDENTIAL Strategic Transformation Program 10 In August 2017, after engaging in a thorough review of the business, management announced the following: 1. Management has already targeted more than $400 million of run-rate cost savings, with the majority of initiatives expected to be implemented by
Slide 11: Reimagination of Print
11 Reimagination of Print Reimagining how we create, produce, distribute and monetize print • Cost initiatives – including editorial delayering and hubbing, web content in books, editorial cost innovation • Format changes – including frequency and rate base, eventizing of covers • Ad Sales innovatio
Slide 12: Key Growth Areas
Key Growth Areas
Slide 13: 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 14: Video
14 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 3Q 2017, we achieved over 3 billion video vi
Slide 15: Leading the Way Across the Video Ecosystem
S O C I A L V I D E O L O N G F O R M T V V I R T U A L R E A L I T Y O T T D I G I T A L V I D E O 3 R D P A R T Y P L A T F O R M S Leading the Way Across the Video Ecosystem 2 BRANDS LAUNCHED YTD 2017 360o INTERACTIVE EXPERIENCES 2MM+ DOWNLOADS 9/2017 50hrs+ ON THE AIR 1B+ STREAMS PER MONTH 3 SNA
Slide 16: Content Capabilities Across All Platforms and Formats
Content Capabilities Across All Platforms and Formats IG-Exclusive Elevator Videos 16
Slide 17: Programmatic & People-Based Targeting
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. Leveraging the shift to programmatic buying, Time Inc. + Viant offers both premium brands and first-p
Slide 18: Brand Extensions
BRAND LICENSING TV & LONG FORM EVENTS Extending Time Inc.’s brands to products worldwide, and monetizing against our existing editorial Time Inc. Productions is a full-service production company leveraging Time Inc.’s iconic brands to create and monetize original programming Time Inc. has the power
Slide 19: Financial Highlights
Financial Highlights
Slide 20: 3Q17 Financial Highlights
Solid Quarter for Adjusted OIBDA Despite Challenging Print Environment Total revenues of $679 million, declined 9% year-over-year. Operating income of $51 million versus Operating loss of $167 million in the prior year. Adjusted OIBDA of $115 million versus $100 million in the prior year. In O
Slide 21: 3Q17 Sources of Revenues
3Q17 Sources of Revenues Sources of Revenues In millions Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 % Change 2017 2016 % Change Magazines $ 433 $ 506 (14 )% $ 1,300 $ 1,560 (17 )% Digital 165 160 3 % 480 429 12 % Brand Extensions & Other 81 84 (4 )% 229 220 4 % Total
Slide 22: Diversifying Sources of Revenues
Diversifying Sources of Revenues Magazines consists of revenues generated from the sale of printed magazines, bundled print and digital offers and magazine distribution, fulfillment and marketing services provided to third-party publishers. Digital consists of revenues generated on digital platforms
Slide 23: Appendix
Appendix
Slide 24: (1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible
(1) OIBDA is defined as Operating income (loss) excluding Depreciation and Amortization of intangible assets. (2) (Gain) loss on operating assets, net reflects primarily 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 Build
Slide 25: Schedule II Reconciliation of Operating Income (Loss) to Adjusted OIBDA
Schedule II 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) los
Slide 26: Management Presentation November 2017
Management Presentation November 2017