January 25, 2019

To Our Stockholders,

This past year was a pivotal one for Viacom, marked by the turnaround and evolution of our business. We made significant progress in each of our strategic priorities: increasing share and margins across our TV and film brands; accelerating our presence on next-generation platforms; and diversifying into adjacent businesses. At the same time, we took important steps to evolve Viacom for the future by investing in key growth initiatives, including global studio production and distribution, advanced advertising and marketing solutions and greater expansion into short-form digital, experiential and live events.

Thanks to this momentum, we not only fulfilled our promise to deliver topline growth in the second half of fiscal 2018, but we also grew full-year consolidated operating income for the first time since fiscal 2014. Viacom is fundamentally stronger than it was since we began our turnaround two years ago, but financial milestones like these tell only part of the story.

Operationally, we made dramatic improvement across our domestic flagship channels and achieved another banner year at Viacom International Media Networks. We revitalized our distribution business, re- positioned domestic advertising sales for future growth and strengthened Paramount’s bottom line. Importantly, we accomplished these objectives in the year while simultaneously delivering more than $100 million in cost savings and over $1 billion in debt reduction – the results of our transformation into a more agile and resilient organization.

Fueling this evolution is our intensified focus on great content that drives conversation and culture around the world. Viacom is now on its way to becoming a leading global supplier of multiplatform entertainment for both our own portfolio of iconic brands, and, increasingly, for others. We are doing this by continually improving our content engines with stronger leadership, programming and talent, as well as better leveraging our libraries of intellectual property, creative assets and capabilities to broaden how and where we deploy our IP.

In the U.S., our media networks continue to maintain the top linear share of viewing among all the key audiences we serve. In fact, Viacom grew year-over-year audience share across its portfolio of domestic flagship brands in every quarter of fiscal 2018, with MTV leading the way as the fastest-growing network across all TV in primetime among the key Adults 18-34 demo. This strength extends internationally too. Anchored by our global pay brands and broadcast cornerstones including Channel 5 in the U.K. and Telefe – Argentina’s highest-rated network for 12 straight months and counting – VIMN delivered record revenue and profitability in the year while launching new channels in Europe and Asia.

2018 also saw the exciting re-emergence of Paramount. With strong growth both at the box office and in television production, the studio improved full-year adjusted operating income by $241 million and is now set up for a profitable 2019. Theatrical highlights include the release of Mission: Impossible – Fallout, which grossed nearly $800 million globally on its way to becoming the most successful film of the franchise, as well as the phenomenal success of A Quiet Place, now the second highest-grossing horror film in the U.S. over the past decade. And, in just a few short years, Paramount TV has become a significant driver of growth, boosting revenue 127% to $400 million in fiscal 2018 off a robust slate of hit shows, such as 13 Reasons Why for Netflix, The Alienist for TNT and Tom Clancy’s Jack Ryan for Amazon – all three of which were renewed.

Paramount TV is a key piece of our global studio production business that is expected to generate a billion dollars in revenue by 2020. This initiative leverages Viacom’s creative capabilities and vast libraries of world-class IP to feed the insatiable demand for content and enlarge the global footprint of our flagship brands. We have already built a solid foundation beyond Paramount from which to grow, launching Viacom International Studios (VIS), MTV Studios and Nickelodeon’s studio business in 2018. Through the large number of deals completed by VIS, Viacom is quickly transforming into one of the top producers of original Spanish language programming in the world. Additionally, MTV sold three regional versions of The Real World to Facebook Watch to reimagine the seminal series for digital audiences, while Nickelodeon has already partnered with Netflix on two major projects.

Our July acquisition of Awesomeness – a leading brand of original programming for Gen Z – immediately augments Viacom’s global studio business with an award-winning television and film studio of its own. Most recently, Awesomeness produced romantic comedy To All the Boys I’ve Loved Before – one of the most- watched Netflix original films ever – the sequel to which is in the works. Moreover, the brand brings impressive expertise and reach in digital content that will enhance the work of Viacom Digital Studios, which, in its infancy, continues to make significant gains in video consumption and deepen our presence in the space. Viacom finished 2018 as the fastest-growing TV media portfolio in social video views, and we broke into the top 10 in this category among all media and entertainment companies – up from number 24 a year ago.

Likewise, Viacom brands have broadened their expression off-screen, connecting with fans through live events, consumer products and other experiences. More than 3.8 million people globally attended a Viacom event in fiscal 2018 – a 48% increase from the previous year. Our purchase of Vidcon, the world’s largest conference celebrating online video, has supplemented this growing area of business for the company, as have expanded offerings from each of our flagship brands. These include the triumphant returns of Comedy Central’s Clusterfest and the BET Experience, the U.S. premiere of Nickelodeon SlimeFest, successful stage runs of Paw Patrol Live! and Mean Girls on Broadway, as well as the annual Isle of MTV music festival in Malta, the new Wild ‘N Out live tour, and, most recently, MTV’s acquisition of the SnowGlobe Music Festival. We’re also very excited about the partnership Bellator formed with streaming service DAZN that will bring more live bouts to global audiences in 2019, doubling the league’s revenue and making it profitable.

Across TV and film, digital and experiential, we are dramatically increasing where and how our IP comes to life, which, in turn, strengthens our ability to monetize this content. Viacom’s ad solutions business is making progress in enhancing the monetization of Viacom content and experiences, putting us on a path to domestic advertising growth. We are taking advantage of tight supply and the revitalization of our media networks to drive price, and, having secured our strongest Upfront pricing in five years, we are heading into 2019 in a much stronger position than a year ago. We’re also creating and capitalizing on new forms of inventory by introducing new, innovative products to the marketplace that provide even greater opportunities to our partners. These offerings across digital, branded content, influencer and shopper marketing, experiential and more form our growing Advanced Marketing Solutions (AMS) portfolio – another initiative that was only formed within the past year, but is already making a huge impact. AMS also leverages Viacom’s leading ad targeting capabilities – powered by our data-driven Vantage platform – to drive greater value for advertisers and a better viewing experience for consumers.

In fiscal 2018, AMS increased revenue 25% year-over-year to over $340 million – growth that will only quicken as we continue to benefit from the branded content offerings of Awesomeness and the capabilities of influencer marketing company WHOSAY, which Viacom acquired at the outset of 2018. And like our studio production business, AMS will be a big area of focus this year as we continue to scale the potential of this business.

In our distribution business, we capped off the year by returning domestic affiliate revenue to growth in the fourth quarter, a testament to the success of our re-envisioned approach to partnership that has led Viacom to consistently close important renewals. Beyond securing carriage of our pay-TV networks and associated on-demand product, we strategically expanded our relationships with key distributors to capitalize on our advanced advertising and content capabilities – a unique combination that is creating value that we are just starting to capture.

With our core business stabilized, we continue to accelerate our participation on next-generation platforms, including the virtual MVPD ecosystem, where Viacom is already strongly represented through its carriage on DirecTVNow and Sling, along with AT&T’s Watch mobile-focused product. Moreover, we are delivering

2 new direct-to-consumer subscription models to audiences through third-party platforms, launching Nickelodeon’s pre-school offering Noggin and the newly rebranded Comedy Central Now product as Amazon Prime Video Channels in the year. And this is just the beginning, as we look to exploit even greater opportunities to package attractive offerings that play to our strengths in unscripted, Spanish language and African American programming. Viacom also continues to rapidly increase its base of international mobile subscribers, which nearly tripled to just under five million in 2018. In addition to signing distribution agreements with mobile operators across 29 different countries, we completed a sale transaction in Indian joint venture Viacom18 to leverage our partner’s mobile broadband Jio platform and usher in a new wave of growth across the region.

By virtually every measure, Viacom is in a stronger position to continue its evolution. We have revitalized our core businesses and our growth initiatives are already gaining traction. Our progress over the past year gives us full confidence in our ability to return Viacom to topline growth and improved profitability. And driving this momentum is an organization re-tooled to embrace change, led by employees that are united behind the same mission, vision and values, and who are more equipped, engaged and inspired than ever to move us forward.

Of course, none of this would be possible without your support in everything that we do to transform Viacom for the future. Thank you for your continued commitment to our success.

Thomas J. May Robert M. Bakish Non-Executive Chairman of the Board President and Chief Executive Officer

Shari Redstone Non-Executive Vice Chair of the Board

This letter should be read in conjunction with Viacom’s 2018 Annual Report on Form 10-K, including the risk factors discussed therein.

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