News Corporation Annual Report 2001 Final worldwide listing 8/28/01 1:17 PM Page 1 reach people News Corporation Producing and distributing the most compelling content to the farthest reaches of the globe. subscribers readers consumers A.C.N 007 910 330 Final worldwide listing 8/28/01 1:17 PM Page 2 Television United States FOX Broadcasting Company (a) Fox Television Stations (a) The News Corporation Limited WNYW New York, NY as of June 30, 2001 KTTV Los Angeles, CA WFLD Chicago, IL WTXF Philadelphia, PA Revenues by WFXT Boston, MA Industry Segment 2001 KDFW Dallas, TX KDFI-TV Dallas, TX 26% Filmed Entertainment WTTG Washington, DC Filmed Entertainment WJBK Detroit, MI United States WAGA Atlanta, GA 27% Fox Filmed Entertainment (a) KRIV Houston, TX Television Twentieth Century Fox Film Corp WTVT Tampa, FL Fox 2000 Pictures WJW Cleveland, OH 11% Fox Searchlight Pictures KSAZ-TV Phoenix, AZ Cable Network Programming Fox Music KDVR Denver, CO Twentieth Century Fox Home KTVI St. Louis, MO 7% Entertainment WDAF-TV Kansas City, MO Twentieth Century Fox Licensing Magazines/Inserts WITI Milwaukee, WI and Merchandising KSTU Salt Lake City, UT Fox Interactive 18% WBRC Birmingham, AL Twentieth Century Fox Television WHBQ-TV Memphis, TN Newspapers Fox Television Studios WGHP Greensboro, NC Regency Television (b) (50%) KTBC Austin, TX 7% Blue Sky Studios Chris-Craft (10 stations) (c) Book Publishing Twentieth Television (a) Australia Echostar Communications Corporation (5%) 4% Fox Studios Australia (b) (50%) Other United Kingdom and Europe Mexico British Sky Broadcasting (36.3%) Fox Studios Baja (a) Stream (50%) Balkan News Corporation Operating Income by Asia (except Japan) Industry Segment 2001 STAR Channel [V] Music Networks Limited Partnership (87.5%) 16% Phoenix Satellite Television Holdings Limited (37.6%) Filmed Entertainment ESPN STAR Sports (50%) VIVA Cinema (50%) 32% Asia Sports Group Limited (20%) Television Japan 6% SKY PerfecTV! (8.1%) Cable Network Programming News Broadcasting Japan (80%) JSky Sports (14.3%) 14% Sky Movies Corporation (50%) Magazines/Inserts Nihon Eiga Satellite Broadcasting (15%) 29% Latin America Newspapers Canal Fox (a) Sky Latin America DTH Platforms 7% Mexico - Innova (30%) Book Publishing Brazil - NetSat (36%) Sky Multi-Country Partners (30%) -4% Telecine (b) (12.5%) Other Cine Canal (b) (22.5%) Australia and New Zealand FOXTEL (25%) Fox Sports Australia (50%) Sky Network Television (29.5%) Final worldwide listing 8/28/01 1:17 PM Page 3 Magazines and Inserts United States and Canada Gemstar-TV Guide International Inc (38.5%) News America Marketing In-Store FSI (SmartSource Magazine) SmartSource iGroup News Marketing Canada The Weekly Standard Australia InsideOut New Zealand Independent Newspapers (44.3%) Newspapers (14 national magazines) United States New York Post Book Publishing Cable Network Programming United Kingdom United States, Canada, United Kingdom The Times & Europe and Australasia United States The Sunday Times HarperCollins Publishers Fox News Channel (a) The Sun Fox Cable Networks Group (a) News of the World FX TSL Education Other Fox Movie Channel Australia Fox Sports Networks More than 100 national, metropolitan, suburban, United States Fox Regional Sports Networks regional and Sunday titles, including the following: Healtheon/WebMD (0.6%) (13 owned and operated) (d) The Australian Rawkus Entertainment (80%) Regional Programming Partners (b) (40%) The Weekend Australian OmniSky Corporation (17.4%) (interests in 8 regional sports networks, The Daily Telegraph Metro Channels, New York Knicks, The Sunday Telegraph United Kingdom and Europe New York Rangers, Madison Square Herald Sun NDS (79%) Garden and Radio City Music Hall) Sunday Herald Sun epartners Sunshine Network (b) (63%) The Courier-Mail (41.7%) Broadsystem Speedvision Network (b) (32%) Sunday Mail (Qld) (41.7%) Broadsystem Ventures Outdoor Life Network (b) (33%) Northern Territory News The Wireless Group (19%) Fox Sports International (b) (50%) Sunday Territorian Convoys Group CTV SportsNet (b) (20%) The Advertiser Sky Radio (71.5%) National Sports Partners (b) (50%) Sunday Mail (SA) Radio 538 (42%) National Advertising Partners (b) (50%) The Mercury News Outdoor Group (75%) National Geographic Channel - Domestic (b) (66.7%) Sunday Tasmanian National Geographic Channel - International (b) (50%) The Sunday Times Australia and Asia Fox Family Worldwide (b) (49.5%) News Interactive Los Angeles Dodgers New Zealand News Connect STAPLES Center (b) (40%) Independent Newspapers (44.3%) Festival Records LA Sports and Entertainment District (b) (40%) Pacific Islands Monthly National Rugby League (50%) HealthSouth Training Center (b) (40%) Fiji Netease.com (8.5%) Fox Sports Skybox (b) (70%) The Fiji Times Indya.com (37.5%) Sunday Times Explocity.com (25%) Asia Indiaproperties.com (19.9%) Hathway Cable & Datacom Private Ltd (26%) Papua New Guinea Egurucool.com (15%) KOOs Group (15 Affiliated Cable Systems) (20%) Post-Courier (63%) Baazee.com (15%) (a) Held by News Corporation’s 82.8%-owned FEG (c) Acquisition of Chris-Craft, BHC and UTV was completed subsequent to June 30 (b) Reflects percentage held by News Corporation’s 82.8%-owned FEG (d) Fox Regional Sports Networks are all owned 100% except Fox Sports Net South is 88% The words “expect”, “estimate”, “anticipate”, “predict”, “believe” and similar expressions and variations thereof are intended to identify forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of The News Corporation Limited, its Directors or its Officers with respect to, among other things, trends affecting the group’s financial condition or results of operations. Readers of this document are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company does not ordinarily make projections of its future operating results and undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Final worldwide listing 8/28/01 1:17 PM Page 4 Filmed Entertainment | Television | Cable Network Programming | Newspapers | Magazines & Inserts | Book Publishing | Other The News Corporation Limited Financial Highlights (in Millions of Australian Dollars except for Earnings Per Share) Year ended June 30, 2001 2000 1999 1998 1997 Revenues United States $ 19,094 $ 16,665 $ 16,199 $ 14,002 $ 10,054 United Kingdom 4,185 3,600 3,569 3,095 2,665 Australasia 2,299 2,178 2,006 1,852 1,670 Total Revenues $ 25,578 $ 22,443 $ 21,774 $ 18,949 $ 14,389 Earnings before interest, taxes, depreciation and amortization (EBITDA) United States $ 2,463 $ 2,121 $ 2,212 $ 2,100 $ 1,265 United Kingdom 1,021 891 766 724 581 Australasia 315 292 284 237 174 Total EBITDA $ 3,799 $ 3,304 $ 3,262 $ 3,061 $ 2,020 Income before abnormal items $ 1,282 $ 1,259 $ 1,471 $ 1,800 $ 1,295 Net Income $ (746) $ 1,921 $ 1,088 $ 1,682 $ 720 Earnings per share Income before abnormal items $ 0.30 $ 0.30 $ 0.37 $ 0.46 $ 0.38 Net income $ (0.19) $ 0.47 $ 0.27 $ 0.43 $ 0.20 Financial Position Assets $ 84,961 $ 65,585 $ 53,972 $ 54,484 $ 41,358 Total Debt $ 18,805 $ 15,431 $ 13,167 $ 14,422 $ 11,339 Operating Income by Geographic Segment 2001 67% United States 7% Australasia 26% United Kingdom and Europe 4 Financial Highlights (in Millions of U.S. Dollars except for Earnings Per ADR) Year ended June 30, 2001 2000 1999 1998 1997 Revenues United States $ 10,303 $ 10,507 $ 10,106 $ 9,489 $ 7,837 United Kingdom 2,258 2,270 2,227 2,097 2,077 Australasia 1,241 1,374 1,252 1,255 1,302 Total Revenues $ 13,802 $ 14,151 $ 13,585 $ 12,841 $ 11,216 Earnings before interest, taxes, depreciation and amortization (EBITDA) United States $ 1,329 $ 1,338 $ 1,380 $ 1,423 $ 986 United Kingdom 551 562 478 491 453 Australasia 170 184 177 161 136 Total EBITDA $ 2,050 $ 2,084 $ 2,035 $ 2,075 $ 1,575 Income before abnormal items $ 691 $ 794 $ 917 $ 1,220 $ 1,009 Net Income $ (445)$ 1,213 $ 678 $ 1,140 $ 561 Earnings per ADR Income before abnormal items $ 0.64 $ 0.77 $ 0.92 $ 1.26 $ 1.18 Net income $ (0.46)$ 1.18 $ 0.67 $ 1.17 $ .64 Financial Position Assets $ 42,999 $ 39,279 $ 35,697 $ 33,012 $ 31,019 Total Debt $ 9,517 $ 9,242 $ 8,708 $ 8,738 $ 8,504 Revenues by Geographic Segment 2001 75% United States 9% Australasia 16% United Kingdom and Europe 5 Filmed Entertainment | Television | Cable Network Programming | Newspapers | Magazines & Inserts | Book Publishing | Other The News Corporation Limited Chief Executive’s Review There is no greater measure of a person or a company than the ability to grow stronger in the face of adversity. In fiscal 2001, News Corporation encountered worldwide challenges – a global economic downturn, the consequent fall in advertising spending, currency fluctuations in key markets – and met them with success. Mr. Rupert Murdoch Chairman and Chief Executive ur success this past year came not from any new strategy or venture but from Oa diligent focus on the Company’s core strengths: the fundamental skills and assets that Our Filmed Entertainment have made News Corporation one of the world’s major media companies. segment enjoyed an We turned to our strength in filmmaking and released some of the year’s most successful excellent year, more than motion pictures, including the record-breaking X-Men and Cast Away, the internationally cele- doubling its operating brated Moulin Rouge and, shortly after the end of the fiscal year, Planet of the Apes. income. We demonstrated our strength in television production by creating more series for U.S. primetime television than any competitor, becoming the only studio to supply top-quality programming to all six major broadcast networks.