Our Mission
Expand, monetize our brands on a global stage
Leverage our lifestyle expertise and “Best of Breed” television and digital assets
Deliver opportunity for global media consumers to experience, enjoy and rely on our brands
About UKTV
Created in 1997
39 million viewers per month, 4 percent of U.K. market share
Eight pay and two free channels
Solid position in lifestyle, entertainment and nonfiction genres
UKTV Acquisition Rationale
Enhanced editorial influence on home and food lifestyle channels
Solid portfolio of television networks with upside potential
Provides immediate entre into one of the world’s largest television markets
BBC a strong global partner; opens us up to new conversations UKTV Deal Points
Transaction completed October 1
100 percent cash purchase of 50 percent equity interest for £239 million
£100 million to acquire outstanding preferred stock and debt
Enterprise value £585 million
Negotiating digital rights agreement with BBC UKTV Income Statement Impact
Accretive to EPS in year one
Reported as equity earnings of affiliates Equity Earnings of Affiliates Growth Trend (In millions)
20% CAGR $30
$23
$18 $19 $15 $15 +62% -12% +20% +56%
2007 2008 2009 2010 2010 1H 2011 1H Equity Earnings of Affiliates Profile
(FOX-BRV (UKTV, HGTV Canada, Southern Sports, Food Network Canada, Food Network DIY Network Canada) and HGTV 40% magazines, Oyster.com) Domestic 60% Joint Ventures International Joint Ventures
2012 P Solid Partnership in Canada
HD channel launched in February 2011; House Hunters, House Hunters International continue to shine
Record year for ratings and profitability; HD channel launched September 27
Outstanding second year; revenues doubled
Food Network UK Highlights
Launched November 2009 on BSkyB and Freesat platforms
Most successful launch on Sky’s Lifestyle & Culture Section in more than four years
Viewership has doubled since Freeview launch in July 2011 Food Network South Africa Highlights
Launched December 2010 on DSTV platform
Viewership has overtaken BBC Lifestyle and Style Network
Second most popular lifestyle channel on DSTV
3.4 million viewers sampled network through July
Looking Ahead
Explore potential partnerships
Build program sales
Formulate digital strategy
Consistent Consolidated Growth (In millions)
16% CAGR $1,883
$1,312 $1,367 $1,185 +38% $1,015 +4% $911 +11% Total Revenue $835 +12% $583 Total $554 $571 Segment $501 +5% -2% +46% $392 +28% Profit
2007 2008 2009 2010 2010 1H 2011 1H
* Excludes Interactive Services Revenue by Network/Platform
13% 36% 9%
5%
36% 1% International and Other
1H 2011 Revenue by Source
29% Affiliate Fees 2% Other 69% Advertising
1H 2011 Maintaining A Strong Balance Sheet
(As of June 30, 2011)
Cash $713 million
Long-term Debt $884 million
YTD cash provided by continuing $352 million operating activities Future Uses of Cash
Share Buyback $1.0 billion Less:
Trust Shares (6.4M @ $46.66/sh) $300 million
Open Market Shares (2.4M @ $40.97/sh) $100 million
Remaining $600 million
Minority Interest Stakes • International opportunities • Food Partnership • Organic development opportunities • Travel Partnership • Existing long-term debt Full-Year Guidance
2011 Guidance
Lifestyle Media
Revenue Increase 10 to 12 percent
Programming Expenses Increase 6 to 9 percent
Non-Programming Expenses Flat to down 2 percent
International
Losses $5 to $10 million Full-Year Guidance – Other Items
2011 Guidance
Capital Spending $60 to $70 million
Effective Tax Rate 31 to 33 percent
Depreciation and Amortization $90 to $100 million
Non-Controlling Interest $160 to $170 million Share of Net Income