2003 ANNUAL REPORT

Our Mission e are Meredith Corporation, a built businesses that serve well-defined Wpublicly held media and marketing readers and viewers, deliver the messages company founded upon service to our of advertisers and extend our brand Our success is rooted in our ability to serve customers and committed to building value franchises and expertise to related markets. for our shareholders. Our cornerstone is Our products and services distinguish consumers, customers, communities and shareholders. knowledge and understanding of the home themselves on the basis of quality, customer and family market. From that, we have service and value that can be trusted.

CORPORATION

CORPORATION Meredith Corporation 1716 Locust Street Des Moines, IA 50309-3023 (800) 284-4236 www.meredith.com Table of Contents Financial Highlights ...... 2 Rebuilding Together ...... 13 Letter to Our Shareholders ...... 3 Board of Directors ...... 14 Review of Operations ...... 6 Corporate Officers ...... 15 Publishing ...... 6 Operations ...... 16 Broadcasting ...... 10

Form 10-K is included in this report.

CORPORATION

Regulation G Information

Certain information contained in this report is subject to SEC Regulation G, which addresses the usage and disclosure of non-GAAP (generally accepted accounting principles) financial measures. Unless specifically stated otherwise, to enhance comparability all comparative prior years’ results are stated on an adjusted, or a non-GAAP basis, as if the amortization provisions of SFAS No. 142 were in effect in all periods. The Company adopted SFAS No. 142, which changed the accounting for goodwill and other intangible assets with indefinite lives, at the beginning of fiscal 2003. Additionally, adjusted results exclude special items: nonoperating income (expense) and nonrecurring items. Earnings before interest, taxes, depreciation and amortization (EBITDA) are also presented in this report. The Company uses EBITDA along with operating profit and other measures to evaluate its broadcasting segment. See page 19 of the included Form 10-K for further information on the Company’s rationale for presenting non-GAAP financial measures. See “Reconciliations of Non-GAAP Financial Measures” in Appendix 1 immediately following the included Form 10-K.

Meredith Corporation 2003 Annual Report E.T. Meredith III

In Remembrance of Ted Meredith

n February 3, 2003, E.T. (Ted) He was tough when he had to be, but also OMeredith III, Chairman of the extremely patient and nurturing. Executive Committee, passed away. Ted Ted’s personal life was full and reward- was the grandson of our founder E.T. ing. He was an accomplished pilot, a seri- Meredith and was instrumental in building ous and discerning art collector and an Meredith Corporation into a great company. enthusiastic sportsman. He also appreciated He successfully held a series of simple pleasures such as riding at his ranch management positions in the Company’s in Wyoming and working in his woodshop. , book and printing groups. In Most important to him was being a caring 1971, he was elected President and Chief husband, father and grandfather. Executive Officer. Ted was first elected to Ted believed deeply in Meredith the Board of Directors in 1966. He served Corporation and our mission of service as Chairman of the Board from 1973 until journalism. The theme of this annual report 1988, when he became Chairman of the —Our success is rooted in our ability to Executive Committee. serve consumers, customers, communities For those who knew him, Ted was a and shareholders—reinforces the mission man of few words but important actions. and reflects Ted’s belief.

Serving consumers, customers, communities and shareholders. page 1 Financial Highlights Years ended June 30 2003 2002 2001 (In millions except per share data) GAAP Results Revenues ...... $ 1,080.1 $ 987.8 $ 1,043.5 Income from operations ...... $ 177.3 $ 117.8 $ 126.6 Earnings before accounting change(1) ...... $ 91.1 $ 91.4 $ 71.3 Diluted earnings per share before accounting change(1) ...... $ 1.78 $ 1.79 $ 1.39 Total assets ...... $ 1,436.7 $1,460.3 $ 1,437.7 Long-term debt (including current portion) ...... $ 375.0 $ 385.0 $ 470.0 Shareholders’ equity ...... $ 500.8 $ 507.7 $ 447.9 Non-GAAP Adjusted Results Revenues ...... $ 1,080.1 $ 987.8 $ 1,043.5 Income from operations(2) ...... $ 177.3 $ 143.5 $ 177.8 Earnings before accounting change(1)(2) ...... $ 92.0 $ 70.1 $ 89.5 Diluted earnings per share before accounting change(1)(2) ...... $ 1.80 $ 1.38 $ 1.74 Dividends per share ...... $ 0.37 $ 0.35 $ 0.33 Stock Price High ...... $ 47.75 $ 45.00 $ 38.97 Low ...... $ 33.42 $ 26.50 $ 26.75

Adjusted Earnings Per Share(1)(2) Adjusted Income Revenues from Operations(2) (In millions) (In millions)

$211.6 $1,089.5 $1,080.1 $2.01 $1,004.9 $1,029.8 $1,043.5 $1.87 $1.74 $1.80 $192.2 $987.8 $1.65 $177.8 $169.9 $177.3

$1.38 $143.5

9899 00 01 02 03 9899 00 01 02 03 9899 00 01 02 03 (1) Before the cumulative effect of a change in accounting principle. (2) Adjusted for SFAS No.142 and special items. Non-GAAP adjusted amounts on this page are not in accordance with GAAP. While management believes these measures contribute to an understanding of the Company’s financial performance, they should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” in Appendix 1 immediately following the included Form 10-K.

Meredith Corporation 2003 Annual Report page 2 To Our Shareholders

consumers, customers, communities and shareholders—an extension of Ted Meredith’s com- mitment to service journalism that is his legacy. Ted’s vision and dedication were instrumental in making Meredith the great company it is today. With his passing, our industry lost a respected leader and I lost a personal friend whose counsel I valued.

We took several strategic actions in fiscal 2003 to expand our audiences and grow revenues. In our publishing segment, we leveraged our trusted brands, grew market share for many of our and increased revenues from our book operations. Advertising pages for our magazines as a group rose 19 percent, the largest gain reported among the country’s top 20 magazine publishers. The total growth for all magazines and supplements measured by the Publishers Information Bureau William T. Kerr (PIB) was only 1 percent. Chairman and Chief Executive Officer Our flagship publication, Homes and Gardens, set an all-time record with, according to PIB, 2,025 advertising pages and remained iscal 2003 was a very successful year for the clear leader in the women’s service field. FMeredith Corporation. Net income rose Ladies’ Home Journal, our second-largest 31 percent to $92 million and earnings per magazine, introduced a major redesign in March share rose 30 percent to $1.80 before special 2003. Advertisers embraced the new vitality items and the cumulative effect of an accounting and excitement of the magazine as evidenced change. Total revenues grew 9 percent to by its impressive 32 percent increase (per PIB) $1.08 billion and, according to industry metrics, in advertising pages during the second half of we outperformed our peers in both publishing the fiscal year. and broadcasting. Our mid-size titles—Country Home, We created outstanding value for our share- , MORE and — holders. In fiscal 2003, our stock price rose 15 continued to perform well and we increased percent while our SEC peer group had a weighted their rate bases to build advertising revenues and average gain of 5 percent and the S&P 500 Index market share. We grew our book operations with declined 2 percent. We advanced our already publications based on our own brands and those strong practices with respect to corporate licensed from others. Our integrated marketing governance and financial reporting requirements. business posted an outstanding year in terms of The year’s performance was a result of solid new business sold and we had record page views execution of our publishing strategies and the and unique visitors at our web sites. continued turnaround in broadcasting despite We acquired the American Baby Group, an an uncertain economy for media companies. array of multimedia properties that inform and Our success was rooted in our ability to serve inspire new parents. The acquisition extends our

Serving consumers, customers, communities and shareholders. page 3 reach to younger women and families, including Premier position in the home and family those in the rapidly growing Hispanic market, markets. Our products dominate the industry and provides an opportunity to transition these sweet spot of Americans in the 35-54 age group, readers to our established titles. the country’s largest purchasers. This age group Improving the performance of our broadcasting does a disproportionate amount of its spending operations has been a priority the past two years. in Meredith’s specialties—remodeling, decorating, In fiscal 2003, we recorded significant ratings cooking and gardening. and financial improvement. Notable gains in the November 2002, February 2003 and May Growth potential in broadcasting. We improved 2003 ratings books indicated our improved our performance in fiscal 2003, but there are newscasts and syndicated programming were many more opportunities. As our programming drawing increased viewership. Our same-station improves, we will attract more viewers and revenue growth and margin expansion demon- generate more revenue from advertisers who strated our ability to translate those gains to want to reach those viewers. positive financial results. Management talent. We continued to strengthen We aggressively pursued new advertisers, the leadership of the Company with significant especially businesses that had never utilized new additions in Publishing and Broadcasting television advertising. We generated incremental and at the corporate level. We welcomed two new revenue by leveraging the assets of Meredith’s members to our senior management team. John H. Publishing Group to serve broadcasting clients. (Jack) Griffin, Jr. became president of the Magazine Group, replacing Jerome M. (Jerry) To maintain financial momentum and improve Kaplan, who will retire in December. Steven M. service we will build on our strengths. Cappaert is our new corporate controller. Outstanding reach. We serve more than 80 Strong financial position. We will continue to million American consumers each month through invest in our businesses, pursue selected, targeted our magazines, books, custom publications, Internet acquisitions, reduce debt, repurchase shares presence and television stations. Our database and make dividend payments. In fiscal 2003, contains 75 million names with 300 data points on we acquired the American Baby Group for seven of 10 U.S. home-owning households. $115 million and still reduced our debt by Established brands. The national recognition of $10 million to $375 million. We repurchased titles such as Better Homes and Gardens, Ladies’ more than 760,000 shares of common stock Home Journal, American Baby and Country and increased our dividend payment for the Home combined with the strong local reputation 10th year in a row. Fiscal 2003 marked the of many of our television stations 56th consecutive year that Meredith has paid provides a solid foundation for continued growth. a quarterly dividend.

Long-term Financial Objectives • We expect each of our segments to improve its margin over the long term. The Publishing Group should add a percentage point per year in the next three years to reach a 20 percent operating margin. The Broadcasting Group should improve its EBITDA margin to the 40 percent level in two to three years. • Successful execution by each of our business segments will drive earnings per share growth. We believe earnings per share growth should be in the low double digits in nonpolitical years and in the mid-to-high teens in political years.

Meredith Corporation 2003 Annual Report page 4 70 Relative Price Performance of Meredith Corporation versus Market Indices (July 1, 2002 through June 30, 2003) 130 130

120 120

110 110

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90 90

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70 70 7/01/02 9/30/02 12/31/02 3/31/03 6/30/03

Meredith DJIA S&P 500

We are executing these strategies to improve We are focusing on two long-term financial shareholder value in fiscal 2004 and beyond: objectives. • We will expand our powerful publishing First, we expect each of our segments to improve base. We will grow advertising revenue in our its margin over the long term. The Publishing magazines; increase nonadvertising revenue Group should add a percentage point per year in from our book, brand licensing and integrated the next three years to reach a 20 percent operating marketing businesses; and improve our margin. The Broadcasting Group should improve circulation contribution through Internet its EBITDA margin to the 40 percent level in two subscriptions and direct mail programs. to three years. Second, successful execution by each of our • We will build on the turnaround in our business segments will drive earnings per share broadcasting operations. We will continue growth. We believe earnings per share growth to improve the ratings of our newscasts and should be in the low double digits in nonpolitical other programming, translate the ratings years and in the mid-to-high teens in political years. gains to revenue and profit growth through We thank our shareholders, customers and aggressive sales and marketing initiatives employees for their ongoing support. We are and manage costs judiciously. confident our strategies will build on Meredith’s • We will enhance our excellent financial rich history and strong foundation to enhance our position and use our cash flow to invest enviable leadership position. in our businesses, make selected, targeted acquisitions, pay dividends, repurchase shares and maintain a conservative balance sheet.

William T. Kerr Chairman and Chief Executive Officer

Serving consumers, customers, communities and shareholders. page 5 Meredith Publishing

he Meredith Publishing Group, the The Publishing Group also offers Tcountry’s foremost home and family integrated marketing, interactive media authority, features 17 magazine brands. and database services. Integrated marketing Among them are Better Homes and Gardens, uses our extensive resources to create Ladies’ Home Journal, Country Home, custom publishing and marketing programs MORE, Traditional Home, Midwest Living for some of America’s leading companies, and American Baby. including DaimlerChrysler and Carnival Meredith publishes approximately 170 Cruise Lines. Meredith has an extensive Special Interest Publications sold primarily Internet presence that includes 25 web sites on newsstands. Most of these publications and additional access through strategic focus on decorating, remodeling, craft alliances with leading Internet destinations. making, gardening, or cooking. Meredith’s Meredith’s consumer database, which nearly 300 books in print include the 12th contains more than 75 million names, is edition of the Better Homes and Gardens the largest domestic database among New Cook Book, The Home Depot® 1-2-3 media companies and enables magazine book series and the Trading Spaces® book and television advertisers to target marketing series. Meredith Corporate Solutions uses all campaigns precisely. of the Company’s assets to deliver marketing solutions that meet clients’ advertising needs.

Major Magazine Brands Title Frequency September 2003 Title Frequency September 2003 Rate Base Rate Base Better Homes and Gardens Monthly 7,600,000 MORE 10x/year 850,000 Ladies’ Home Journal Monthly 4,100,000 Midwest Living 6x/year 850,000 American Baby Monthly 2,000,000 WOOD 7x/year 550,000 Country Home 10x/year 1,200,000 Successful Farming 12x/year 442,000 Traditional Home 8x/year 925,000

Meredith Corporation 2003 Annual Report page 6 Publishing Overview

he Meredith Publishing Group built on its • Expand our portfolio. Tsolid home and family presence to produce • Increase advertising and newsstand sales from strong revenue and operating profit growth in fiscal cross-platform marketing and retail programs. 2003. Publishing revenues in fiscal 2003 rose 10 • Grow nonadvertising revenues and profits in percent and operating profit increased 17 percent. our book and integrated marketing operations. Our magazines increased advertising revenue, led by our flagship Better Homes and Gardens, a Better Homes and Gardens is a solid and revitalized Ladies’ Home Journal and our mid-size dynamic base for our publishing segment. It is titles. With our acquisition of the American Baby the clear market leader in the women’s service Group, we extended our reach to younger field, with an 11 percentage-point lead over its women and families and to a more diverse nearest competitor in terms of advertising revenue. audience. Our book operations produced an In fiscal 2003, Better Homes and Gardens not outstanding year, paced by sales of the 12th only set an all-time record with 2,025 advertising edition of The Better Homes and Gardens pages (per PIB), it was named by Advertising New Cook Book and the launch of our Trading Age to its “A List,” which includes the country’s Spaces® book series. Integrated marketing won top 10 magazines in terms of advertising pages, significant new business and our interactive media circulation performance and content. operations continued to gain momentum. The As strong as it is, Better Homes and Gardens stage is set for continued growth in fiscal 2004. magazine still has growth potential. Acting on the findings from a major research study, we Growth strategies for 2004 and beyond made editorial and design improvements to keep • Leverage the strength of Better Homes the title fresh and vital. On the sales and marketing and Gardens. front, we launched a series of unique partnerships • Continue to revitalize Ladies’ Home Journal. and integrated marketing programs: an original • Continue to grow our mid-size titles. celebrity-oriented TV series with Country Music Television; an event marketing partnership with

Extending the Better Homes and Gardens Brand

Special Interest Publications Mid-size Titles

Brand Licensing Broadcasting Promotion Web Site Corporate Solutions Books

Serving consumers, customers, communities and shareholders. page 7 Major League Baseball; and the Better Homes and hundreds of books. We created a powerful and Gardens Experience interactive mobile tour Better Homes and Gardens web site, completed with Wal-Mart, Mattel and GMC. brand licensing arrangements with retailers and Over time we have extended the Better established cross-marketing programs with our Homes and Gardens brand by launching several local television stations. We also developed a successful subscription magazines, a lineup of Corporate Solutions business, which leverages the approximately 170 Special Interest Publications Better Homes and Gardens brand and our other that are sold primarily through retail outlets magazine brands by creating multi- platform, multiproduct marketing programs across all of our assets. Expanding Our Portfolio In June 2003, we entered a The American Baby Group is an array of strategic alliance with Home Interiors multimedia properties that informs and inspires and Gifts®, one of the country’s mothers and their families. largest direct marketers of home décor accessories. Together we will The American Baby Group create and sell a premium line of properties include: home decorating products known as • American Baby magazine— The Better Homes and Gardens Launched in 1938, it has a rate base Collection, providing an exciting of 2 million and is the foundation of the group. opportunity to extend our brand with an exclusive product line to a • Childbirth magazine—Written for large and loyal customer base. expectant mothers in the third trimester and distributed in childbirth classes, it Ladies’ Home Journal produced reaches 2.3 million readers annually. strong results in fiscal 2003. Advertising pages grew 18 percent • First Year of Life magazine—Created for parents of children from birth to 12 months of and the title’s share of advertising age, it reaches 3 million readers annually. revenue in the women’s service field rose to 13 percent from 11 • Hispanic titles—Espera, Primeros 12 Meses and Healthy Kids en español and related marketing percent (per PIB). To achieve further programs together reach more than 3 million growth, we are working to expand advertising sales consumers annually. in traditional categories such as health and beauty • Web sites (www.americanbaby.com and and nontraditional categories such as automotive. www.healthykids.com)—These sites deliver Our mid-size magazines, led by Midwest 12 million page views and welcome more than Living and MORE, also produced excellent results 1.2 million unique visitors per month. in fiscal 2003. Advertising pages rose 23 percent • American Baby Faire expos and product shows— in Midwest Living and 22 percent in MORE (per More than 100,000 consumers in seven markets PIB). We raised the rate bases of those titles and attend these events annually. of Country Home and Traditional Home, allowing • Sampling programs—Over 9 million expectant and us to increase advertising revenues and attract new parents are introduced to advertisers’ more nonendemic advertisers. The new collective products through these programs. rate base for these mid-size titles is more than • Custom publishing—Many English and Spanish 3.8 million, nearly as large as the rate base of publications are created and distributed for major Ladies’ Home Journal. MORE’s rate base will marketing clients each year. be 950,000 in 2004 and 1 million in 2005. We • Custom research—Industry-renowned baby-product also increased the frequency of Country Home tracking studies, census data analyses and client- to 10 times annually and Traditional Home to specific proprietary research have been conducted eight times per year. for more than 20 years.

Meredith Corporation 2003 Annual Report page 8 Our book pipeline is robust for fiscal 2004. We have released the second and third books in the Trading Spaces® book series based on the hit decorating show on The Learning Channel® cable network. We will produce and market a series of books for both the HGTV Home and Garden Television® network and the Food Network®. We also continue to expand our very successful The Home Depot® 1-2-3 book series.

We are expanding our portfolio to reach Our book pipeline is robust for fiscal 2004. younger women and families and will transition We have released the second and third books these readers to our traditional brands. The in the Trading Spaces® book series based on the acquisition of the American Baby Group in hit decorating show on The Learning Channel® December 2002 is a good example of this cable network. We will produce and market a strategy. The median age of readers of the series of books for both the HGTV Home and American Baby Group publications is younger Garden Television® network and the Food than that for other Meredith titles. American Network®. We also continue to expand our very Baby also serves the rapidly growing Hispanic successful The Home Depot® 1-2-3 book series. marketplace with three magazines, custom Integrated Marketing is well positioned for publishing and multiple web sites. fiscal 2004 as a result of new-business development Revenues from cross-platform marketing and and existing customer growth. We established retail programs continued to grow. Led by Meredith custom publishing relationships with several Corporate Solutions, our cross-platform programs leading companies, including DIRECTV, Publix serve advertisers by delivering advertising pages and John Deere. We renewed valuable relationships throughout our magazine lineup. These programs with existing customers, including DaimlerChrysler often include Internet links and other marketing and Carnival Cruise Lines. initiatives that extend an advertiser’s reach. Our In fiscal 2003, we set records for page views retail programs connect our major advertisers to and unique visitors to our web sites. We achieved consumers and increase our advertising revenues our long-term objective of generating 1.5 million and newsstand sales. magazine orders over the Internet, a priority Our book business significantly increased because costs are lower than those of traditional revenue and profit in fiscal 2003 and is poised subscription acquisition methods. for further growth in fiscal 2004. Our strategy Our leadership in the home and family markets, to publish high quality books based on our own our strong brands and our ability to generate brands and those licensed from others not only nonadvertising revenues position the Publishing diversifies our revenue base, it expands our Group to deliver revenue and profit growth in distribution beyond traditional retailers to nontra- fiscal 2004 and years to come. ditional channels such as home specialty chains.

Serving consumers, customers, communities and shareholders. page 9 Meredith Broadcasting

he Meredith Broadcasting Group consists Our Cornerstone programs package Tof 11 television stations—five CBS content from Meredith magazines such as affiliates, four FOX affiliates, one NBC Better Homes and Gardens and Ladies’ affiliate and one UPN affiliate. Eight of Home Journal with local advertising sold these stations are in the country’s 35 largest by our television stations. These programs markets, including Atlanta, Phoenix, Portland generate incremental revenue and strengthen and Hartford. In Portland, the nation’s 24th the brand recognition of our stations. largest television market, we operate stations Advertisers benefit from affiliation with KPTV and KPDX as a duopoly. our nationally known magazine brands.

Television Stations

(As of September 2003) Market Market Network Station Rank Affiliation WGCL-TV Atlanta, GA 9 CBS KPHO-TV Phoenix, AZ 15 CBS KPTV Portland, OR 24 FOX KPDX-TV Portland, OR 24 UPN WFSB-TV Hartford/New Haven, CT 27 CBS WSMV-TV Nashville, TN 30 NBC KCTV City, MO 31 CBS WHNS-TV Greenville, SC/Spartanburg, SC/ 35 FOX Asheville, NC KVVU-TV Las Vegas, NV 51 FOX WNEM-TV Flint/Saginaw/Bay City, MI 64 CBS KFXO-CA Bend, OR 199 FOX

Meredith Corporation 2003 Annual Report page 10 Broadcasting Overview

he Meredith Broadcasting Group materially our programming accordingly. We hired new on-air Timproved results in fiscal 2003. Same-station talent, increased the number of news stories and revenues grew 15 percent, operating profit rose added late-breaking and investigative reports. 47 percent and year-over-year EBITDA margin As we improve our newscasts, we are improved every quarter. increasing their frequency. For example, we The improvements were driven by excellent added early morning newscasts in Las Vegas execution of segment strategies coupled with and Kansas City and midday news in Atlanta. strong demand for political advertising. Additional newscasts generate new revenues, We posted gains in the three key ratings serve communities and reduce the need for periods of fiscal 2003 and some of the strongest syndicated programming. We also are increasing came in our largest markets—Atlanta, Phoenix local programming in all our markets. Coverage and Portland. We improved the culture within the of parades, festivals and sporting events attracts Broadcasting Group and attracted proven, talent- more local advertising and strengthens stations’ ed sales executives. The combination relationships with viewers and their communities. translated our ratings gains to revenue and profit We are bolstering our syndicated program- growth. We continued to upgrade the segment’s ming by matching our selections to the viewer management team, hiring three new station profiles of station markets. For example, we managers, five news directors and six general purchased the situation comedy Malcolm in sales managers during the fiscal year. the Middle for our FOX stations in Las Vegas, The strategies we will pursue in fiscal 2004 are Greenville and Portland to appeal to their extensions of those we have been implementing younger audiences and chose the Dr. Phil the past two years. talk show for our CBS stations in Hartford and Saginaw and our NBC affiliate in Nashville, Broadcasting growth strategies an excellent fit in those locations. In fiscal 2003, • Strengthen our newscasts, local productions this strategy contributed to improved ratings and and syndicated programming to improve lower overall programming expense. ratings. We are growing our advertising dollars as we increase viewership. We have transformed our sales • Derive advertising and revenue growth culture by attracting proven sales executives and from the improved ratings. raising expectations by setting aggressive targets and • Generate incremental revenues. rewards. Now everyone at each station, including news anchors and other on-air personalities, is News is the largest single component of a playing a role in generating advertising revenues local station’s advertising revenue, accounting or supporting sales operations. for more than 30 percent on average, and it is the We are aggressively pursuing new advertisers, key to each station’s brand identity. especially businesses that have never used The first step in improving our newscasts was television advertising. We also are attracting to research our viewers’ preferences and adjust advertisers that typically have used local television

Serving Our Communities Our news focus serves our communities. For example, when a series of tornadoes struck Kansas City in the spring of 2003, KCTV, our CBS affiliate, aired several hours of uninterrupted, real-time coverage the day of the storms. Then the station broadcast a storm-aid campaign to raise money for those who most needed it. In partnership with Meredith’s Midwest Living magazine, KCTV raised nearly $50,000 for the Salvation Army’s Victims Relief Fund.

Serving consumers, customers, communities and shareholders. page 11 In fiscal 2003, Cornerstone advertising programs generated nearly $11 million in adver- tising revenues. To build on that success, we are offering each program more frequently and increasing its advertising pages. We have begun syndicating these programs in non-Meredith broadcasting markets. competitors, cable, radio and/or newspapers. We entered a joint sales agreement with TV Sharing best practices throughout the Broadcasting Azteca, a leading Mexican television network Group has allowed successful sales techniques that serves Spanish-speaking audiences in the employed at one station to be quickly adapted . Our FOX affiliate in Las Vegas, by others. KVVU, is marketing and managing advertising aired on the Azteca affiliate in the same city. The agreement adds revenues and provides an avenue for advertisers to reach the area’s Hispanic viewers. Our Cornerstone programs package content from our magazines such as Better Homes and Gardens and Ladies’ Home Journal with local advertising. These publications are branded with the logo of our sponsoring station and then delivered to targeted consumers. In fiscal 2003, Cornerstones generated nearly $11 million in advertising revenues. To build on that success, we are offering each program more frequently and increasing the advertising pages. We have begun syndicating these programs in non-Meredith broadcasting markets. The Broadcasting Group delivered higher ratings and improved financial results in fiscal 2003 and is expecting further gains in fiscal 2004. We believe the foundation is in place to achieve our long-term EBITDA margin objective. Stephany Fisher and Tony Harris anchor the late news at WGCL in Atlanta. Strengthening our newscasts was key to the Broadcasting Group’s improved performance. To increase viewership, we tailored our newscasts to viewers needs, hired new on-air talent, increased the number of newscasts and added late-breaking reports.

Meredith Corporation 2003 Annual Report page 12 CORPORATION

o help mark Meredith Corporation’s assists the elderly, TCentennial in 2002, more than 1,000 the handicapped of our employees and families with teamed with small children Rebuilding to remain safe Together to repair and secure in their the residences own homes. of homeowners In the fall of 2002, Meredith teams unable to perform completed projects at 39 homes in 12 the maintenance themselves. of the cities where our major offices Rebuilding Together is the nation’s are located. Meredith employees will largest volunteer organization preserving participate in Rebuilding Together again low-income housing. The organization in the fall of 2003.

Serving consumers, customers, communities and shareholders. page 13 Board of Directors

Herbert M. Baum Mary Sue Coleman D. Mell Meredith Frazier Frederick B. Henry Mr. Baum, 66, is chairman, Dr. Coleman, 59, is president of Ms. Frazier, 47, is Chairman Mr. Henry, 57, is president of president and chief executive the University of , a of the Meredith Corporation The Bohen Foundation, a private officer of The Dial Corporation, public education institution Foundation. A director since charitable foundation based a manufacturer and marketer of based in Ann Arbor, MI. A 2000, she serves on the in New York, NY. A director since consumer products headquartered director since 1997, she serves Compensation, Finance and 1969, he serves on the in Scottsdale, AZ. A director on the Audit and Nominating/ Nominating/Governance Compensation and Nominating/ since 1994, he is chairman of Governance Committees. Committees. Governance Committees. the Compensation Committee and serves on the Nominating/ Governance Committee.

Joel W. Johnson William T. Kerr Robert E. Lee David J. Londoner Mr. Johnson, 60, is chairman, Mr. Kerr, 62, is chairman and Mr. Lee, 68, is president of Mr. Londoner, 66, is a general president and chief executive chief executive officer of Glacier Properties, Inc., a partner of The North River officer of Hormel Foods Meredith Corporation. He has private investment firm based in Company, a family investment Corporation, a producer and been a director since 1994. Denver, CO. A director since partnership based in New York. marketer of meat and other food 1982, he chairs the Nominating/ A director since 2001, he serves on products based in Austin, MN. A Governance Committee and serves the Audit and Finance Committees. director since 1994, he serves on on the Compensation Committee. the Audit and Finance Committees.

Philip A. Marineau Charles D. Peebler, Jr. Nicholas L. Reding Mr. Marineau, 56, is president and Mr. Peebler, 67, is a consultant Mr. Reding, 68, is chairman of chief executive officer of Levi with New Jersey-based Plum The Keystone Center, a nonprofit Strauss & Co., a worldwide Consulting LLC, a consulting organization that facilitates brand apparel company based in company focused on media dispute resolution based on science San Francisco, CA. A director companies. A director since leading to public policy. It is since 1998, he chairs the Audit 2002, he serves on the Audit and headquartered in Keystone, CO. Committee and serves on Finance Committees. A director since 1992, he is the Nominating/Governance chairman of the Finance Committee. Committee and serves on the Compensation Committee.

Meredith Corporation 2003 Annual Report page 14 Corporate Officers

William T. Kerr From left: Chairman and Chief Executive Officer Kevin P. O’Brien President, Broadcasting Group John H. (Jack) Griffin, Jr. President, Magazine Group Stephen M. Lacy President, Publishing Group Jerome M. (Jerry) Kaplan Executive Vice President, Publishing Group

From left: John S. Zieser Vice President, Corporate and Employee Services, General Counsel and Secretary Steven M. Cappaert Corporate Controller Suku V. Radia Vice President, Chief Financial Officer

Serving consumers, customers, communities and shareholders. page 15 List of Operations (As of September 2003)

Publishing Television Broadcasting Magazines WGCL-TV (CBS) ...... www.cbs46.com Better Homes and Gardens ...... www.bhg.com Atlanta, GA America Online Keyword: BHG KPHO-TV (CBS)...... www.kpho.com Ladies’ Home Journal ...... www.lhj.com Phoenix, AZ America Online Keyword: LHJ KPDX-TV (UPN) ...... www..com American Baby ...... www.americanbaby.com Portland, OR and www.healthykids.com KPTV (FOX) ...... www.kptv.com Country Home ...... www.countryhome.com Portland, OR Traditional Home ...... www.traditionalhome.com WFSB-TV (CBS) ...... www.wfsb.com or www.designerfinder.com Hartford/New Haven, CT Midwest Living ...... www.midwestliving.com WSMV-TV (NBC) ...... www.wsmv.com MORE ...... www.more.com Nashville, TN WOOD ...... www.woodonline.com KCTV (CBS) ...... www.kctv5.com Successful Farming ...... www.agriculture.com Kansas City, MO Renovation Style WHNS-TV (FOX) ...... www.foxcarolina.com American Patchwork & Quilting Greenville, SC/ Scrapbooks etc. Spartanburg, SC/Ashville, NC KVVU-TV (FOX) ...... www.kvvu.com Special Interest Publications Las Vegas, NV (Only bimonthly and quarterly titles are listed.) WNEM-TV (CBS) ...... www.wnem.com Beautiful Homes Flint/Saginaw/Bay City, MI Bedroom & Bath KFXO-CA (FOX) ...... www.kfxo.com The Best of Better Homes and Gardens Home Plans Bend, OR Country Gardens Creative Collection ...... www.bhg.com/crafts Meredith Integrated Marketing Creative Home www.meredithim.com Decorating Do It Yourself Meredith Brand Licensing Garden, Deck & Landscape Chief Architect—Better Homes and Gardens Garden Shed ...... www.bhg.com/gardenshed home design software Home Planning Ideas Home Interiors & Gifts, Inc.—The Better Homes and Kitchen and Bath Ideas Gardens Collection decorative accessories for the home Paint Decor Wal-Mart Stores, Inc.—Better Homes and Gardens garden Quick and Easy Decorating and outdoor living products Remodeling Ideas Window & Wall Ideas GMAC Home Services, Inc. Books Other Meredith Businesses Better Homes and Gardens Books . . . . www.bhgbooks.com Meredith Corporate Solutions Country Home Books Meredith List Marketing Meredith Press Meredith Print Advantage Midwest Living Books

Traditional Home Books Trademarks WOOD Books Trademarks and service marks owned The Food Network®—owned by The Home Depot® Books by Meredith Corporation are set in type Television Food Network, G.P. different from the surrounding copy. ® ® Jo Ann’s —owned by Jo-Ann Stores, Inc. Jo-Ann Stores Books ® The Home Depot —owned by Scotts®—owned by OMS Investments, Inc. Mary Engelbreit® Books Homer TLC, Inc. Stanley®—owned by Stanley Logistics, Inc. ® Ortho®—owned by Ortho Books ® OMS Investments, Inc. Mary Engelbreit —owned by Mary ® Engelbreit Enterprises, Inc. Scotts Books Trading Spaces® and The Learning ® Stanley® Books Channel®—owned by Discovery Waverly —owned by Communications, Inc. F. Schumacher & Co. ® Waverly Books HGTV Home and Garden Television® Home Interiors and Gifts®—owned by Trading Spaces® Books —owned by Scripps Networks, Inc. Home Interiors & Gifts, Inc.

Meredith Corporation 2003 Annual Report page 16 Corporate Information Meredith Corporation and Subsidiaries

Meredith Corporation Dividend Reinvestment Meredith Corporation, headquartered in Meredith Corporation offers a dividend reinvest- Des Moines, IA, is America’s leading home ment plan that automatically reinvests shareholder and family media and marketing company. dividends to purchase additional shares of stock. Meredith operates businesses in magazine To learn more or to join the plan, contact Wells and book publishing, television broadcasting, Fargo at 1-800-468-9716 or write to either of the interactive media and integrated marketing. preceding addresses.

Annual Meeting Form 10-K Holders of Meredith Corporation stock are invited A copy of the Meredith Corporation Fiscal 2003 to attend the annual meeting of shareholders at Form 10-K annual report to the Securities and 10 a.m. Central Standard Time on November 10, Exchange Commission (SEC) is included in this 2003, at the Company’s principal office, 1716 Annual Report and is also available without charge Locust Street, Des Moines, IA. to stockholders by calling (800) 284-4236, or on the Company’s Internet site, www.meredith.com. Stock Exchange Common stock of Meredith Corporation is listed Quarterly Information on the New York Stock Exchange. The exchange Persons who wish to receive copies of Meredith symbol for Meredith is MDP. Corporation quarterly SEC filings, earnings CUSIP Number: 589433101 releases and dividend releases may call the Company toll-free at (800) 284-4236 to be placed Class B stock of Meredith Corporation (issued as a on a distribution list, or they may access the dividend on common stock in December 1986) is Company’s Internet site at www.meredith.com. not listed. The transfer of class B stock is limited to the lineal descendants of original owners, their Investor Contact spouses, or trusts for benefit of those persons. Requests for transfer to any other person or entity James K. Jacobson will require a share-for-share conversion to com- Director, Investor Relations mon stock. Conversion prior to sale is not required. CUSIP Number: 589433200 Meredith Corporation 1716 Locust Street Auditors Des Moines, IA 50309-3023 KPMG LLP (800) 284-4236 www.meredith.com Registrar and Transfer Agent Wells Fargo Bank MN, N.A. PO Box 64854 St. Paul, MN 55164-0854 or 161 N. Concord Exchange South St. Paul, MN 55075-1139 1-800-468-9716 or 1-651-450-4064 e-mail: [email protected] Design: Falk Harrison Creative; St. Louis, Des Moines, Principal Photography: Bruce Wagman, www.falkharrison.com MEREDITH CORPORATION 2003 ANNUAL REPORT

Our Mission e are Meredith Corporation, a built businesses that serve well-defined Wpublicly held media and marketing readers and viewers, deliver the messages company founded upon service to our of advertisers and extend our brand Our success is rooted in our ability to serve customers and committed to building value franchises and expertise to related markets. for our shareholders. Our cornerstone is Our products and services distinguish consumers, customers, communities and shareholders. knowledge and understanding of the home themselves on the basis of quality, customer and family market. From that, we have service and value that can be trusted.

CORPORATION

CORPORATION Meredith Corporation 1716 Locust Street Des Moines, IA 50309-3023 (800) 284-4236 www.meredith.com