Meredith Corporation Meredith Corporation Meredith 2019 Annual Report 2019 Annual Report 2019 OurOur Mission Mission We We are are Meredith Meredith Corporation, Corporation, a publicly a publicly held held media media and and marketing marketing services services company company founded founded upon upon servingserving our our customers customers and and committed committed to buildingto building value value for for our our shareholders. shareholders. Through Through our our national national and and local local media media groups, groups, wewe are are on onthe the pulse pulse of popof pop culture, culture, entertainment, entertainment, food, food, fashion fashion and and lifestyle, lifestyle, news, news, business business and and nance, nance, and and sports. sports. FromFrom that, that, we we have have built built businesses businesses that that serve serve well-dened well-dened audiences, audiences, deliver deliver the the messages messages of nationalof national and and local local advertisers,advertisers, and and extend extend our our brand brand franchises franchises and and expertise expertise to relatedto related markets. markets. Our Our products products and and services services distinguish distinguish themselvesthemselves on onthe the basis basis of quality,of quality, customer customer service, service, and and value value that that can can be betrusted. trusted. 20192019 Annual Annual Report Report 000 COVER000 COVER MAR MAR 2019 2019 FNL.indd FNL.indd 1 1 9/17/199/17/19 8:20 8:20AM AM Financial Highlights Board of Directors Years Ended June 30 (In millions except per share data) GAAP Results 2019 2018 2017 2016 2015 Revenues $ 3,189 $ 2,264 $ 1,713 $ 1,650 $ 1,594 Income from operations 287 87 308 131 242 Earnings from continuing operations 129 114 189 34 137 Earnings per share from continuing operations 1.12 1.79 4.16 0.75 3.02 Donald A. Baer 2, 3 Donald C. Berg 1 Mell Meredith Frazier 2, 3 Thomas H. Harty Beth J. Kaplan 1 Mr. Baer, 65, a director Mr. Berg, 64, a director Ms. Frazier, 63, a director Mr. Harty, 56, a director Ms. Kaplan, 61, a Total assets 6,137 6,771 2,730 2,627 2,843 since 2014, is global since 2012, is the president since 2000, is vice chairman since 2017, is president director since 2017, is chairman of Burson Cohn of DCB Advisory Services, of Meredith Corporation and and chief executive of cer the managing member Total outstanding debt 2,730 3,196 701 695 795 & Wolfe, a member of which provides consulting chairman of the Meredith of Meredith Corporation, of Axcel Partners LLC, WPP PLC, one of the services to food and Corporation Foundation. the leading media and investing in consumer-facing world’s largest strategic beverage companies. marketing company early stage and growth Non-GAAP Results communications businesses. serving American women. companies founded and led by women. Adjusted EBITDA(1) $ 706 $ 423 $ 362 $ 320 $ 319 Committee Assignments 1 Audit/Finance 2 Compensation Revenue Dividend Per Share(2) 3 Nominating/Governance 5-Year CAGR: 15% 5-Year CAGR: 5% O cers $3,500 $2.50 $2.30 Thomas H. Harty Paula A. Kerger 1 Stephen M. Lacy Christopher Roberts III 1 Elizabeth E. Tallett 2, 3 President and Chief $3,189 $2.18 Ms. Kerger, 61, a new Mr. Lacy, 65, a director Mr. Roberts, 57, a new Ms. Tallett, 70, a Executive Of cer 3,000 $2.08 director in scal 2019, since 2004, is chairman director in scal 2019, is director since 2008, is a Patrick J. McCreery 2.00 $1.98 is president and chief of Meredith Corporation, president of Dairy Foods consultant to early stage President, Local Media Group executive of cer of PBS, the leading media and for Land O’Lakes Inc., pharmaceutical and $1.83 Joseph H. Ceryanec 2,500 the nation’s largest marketing company a Fortune 200 food and healthcare companies. Chief Financial Of cer $2,247 non-commercial media serving American agribusiness corporation. John S. Zieser 1.50 organization with nearly women. Chief Development Of cer 2,000 350 member stations. $1,713 and General Counsel $1,650 $1,594 Steven M. Cappaert Corporate Controller 1,500 1.00 1,000 0.50 In Appreciation 500 Stephen M. Lacy 0 0 Mr. Lacy retired as executive chairman 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 in March 2019 after 21 years of service $ in millions to Meredith Corporation. Steve began at Meredith in 1998 as chief nancial of cer, and from there assumed operating roles of increasing responsibility that included running Meredith’s digital activities, Frederick B. Henry Phillip A. Marineau business-to-business marketing activities, Non-GAAP amounts are not in accordance with GAAP (accounting principles generally accepted in the United States of America). While management believes and both Meredith’s Local and National Mr. Henry and Mr. Marineau these measures contribute to an understanding of the Company’s nancial performance, they should not be considered in isolation or as a substitute for measures Media Groups. Steve is perhaps best known will retire from the Meredith of performance prepared in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” in the Appendix immediately following the included for the nine years he served as chief executive Board of Directors with 50 Form 10-K. of cer, a role in which he delivered great and 21 years of service, respectively. We thank them (1) Adjusted EBITDA – Earnings before discontinued operations, interest, taxes, depreciation, amortization, and special items. stewardship of our shareholders’ investment, doubling revenue and tripling pro t during for their dedicated work on (2) Annualized dividend per share at end of scal year. his tenure at Meredith. On behalf of all of us behalf of our shareholders. at Meredith, we want to say thank you. 000 COVER MAR 2019 FNL.indd 2 9/17/19 8:20 AM consumer reach 180unduplicated million American consumers 88% of millennial women #1 U.S. national brands Magazine Publisher Led by People and Better Homes & Gardens 17 stations local television in 12 markets Reaching 11% of US households digital 150monthly million unique visitors #1 in entertainment, food, lifestyle #2 licensor brand licensing worldwide trusted brands that lead To Our Shareholders STRONG POLITICAL ADVERTISING PERFORMANCE On behalf of Meredith Corporation and our employees, we want to thank you for your investment Our Local Media Group delivered a record $103 million of in our Company. As a shareholder, you’ve entrusted political-related advertising revenues in our fi scal 2019, far surpassing its previous record high of $63 million set us with your nancial resources. We take that in fi scal 2017. Political spending was particularly robust responsibility very seriously. in the Phoenix, Las Vegas, St. Louis and Kansas City Fiscal 2019 marked the rst full year of owning markets. We anticipate another strong political year in fi s c a l 2 0 2 1 . and operating the assets acquired from Time Inc., and we continue to focus on integrating what is now the largest portfolio of national media brands Political Advertising Revenues $103 (In millions) in the industry. $63 $44 At the same time, our Local Media Group continued to $39 perform at a high level, delivering its third-straight year $35 of record nancial performance. We believe we have positioned Meredith to compete more successfully than at any point in our 117-year history. Importantly, our audience reach is now 115 million, or 90 percent, of all American women and FY11 FY13 FY15 FY17 FY19 includes reaching nearly 90 percent of millennial women. We are a Top 10 media company digitally, with 150 million average monthly unique visitors. accounted for more than one-third of total National In scal 2019, our National Media Group Media Group advertising revenues in scal 2019. delivered on many of the key elements of Growing consumer related revenues by our acquisition plan. These included: leveraging Meredith’s expanded brand portfolio. Improving the print advertising performance Our consumer related revenue activities are of the acquired Time Inc. properties to Meredith’s diversi ed, mostly contractual and include historical levels. We delivered progressively magazine subscriptions, brand licensing, paid better comparable advertising performance in products, lead generation and af nity marketing. each quarter of the year. Of particular note, we As an example, we have been the leading generated low single-digit growth in comparable participant in the launch of Apple News+, a new print advertising revenues at the legacy Time Inc. digital subscription service that offers 30 Meredith titles in our scal fourth quarter. As a reminder, magazines in an innovative, convenient and advertising revenues at these titles were declining curated experience. in the 20-percent-plus range when we acquired Selling media assets not core to Meredith’s them. Our team and our business have made business at attractive multiples. We realized signi cant progress. proceeds of $430 million in scal 2019 related to Raising the performance of the acquired digital the divestiture of the TIME, FORTUNE and Sports properties to Meredith’s high levels. I’m pleased to Illustrated brands. say that our performance accelerated during scal Achieving at least $550 million of annualized 2019 and we grew comparable year-over-year digital cost synergies by the end of scal 2020. Meredith advertising revenues in the low double digits in the has realized approximately $430 million of fourth quarter of scal 2019. Combined with our annualized cost synergies related to its acquisition fourth-quarter print advertising performance, we of Time Inc. through June 30, 2019. We have a clear delivered year-over-year growth in total comparable path to achieving a total of $565 million in our rst advertising revenues.