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The Executive Roundtable: Ken Harding

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Senior Managing Director of FTI Consulting, moderates a panel of media leaders who share and discuss key strategic initiatives of their respective companies.

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The Executive Roundtable: Ken Harding

  1. 1. The CEO Panel Vail Roundtable August 15, 2018 | Confidential Document
  2. 2. Introduction Ken Harding | FTI Consulting Global Publishing Leader
  3. 3. Strategy Development Business Plan Development Performance Improvement Transaction Diligence Newspapers Magazines Direct Marketing | Mail Commercial Printing Books Education Global Publishing Practice FTI uses an experienced-based analytical approach to help companies understand: SELECT CLIENTS SERVICES VALUE PROPOSITION INDUSTRIES Sector Trends New Business Models Digital Transformation Consumer Monetization Sales Effectiveness Expense Optimization 3
  4. 4. Thanks to Our Panel 4  María Eugenia Ferré Rangel | Chairwoman at GFRM Media The impact of Hurricane Maria, how we survived and what we learned through the crisis  Andy Clurman | CEO at Active Interest Media Revenue diversification beyond our printed magazines through events, films, insurance and more initiatives  Jerry Ferrara | President at IBD [Investor’s Business Daily] Moving from a 5-day printed product to weekly distribution and a focus on new paid digital products and the transformation from print to digital
  5. 5. Approach This Morning 5  Short company introduction from each panel member…and then Maria….  A few trends…we probably all know about  Moderated panel discussion  Q & A from the ROUNDTABLE
  6. 6. What Do We Know We cannot stop legacy print declines Today, our revenue mix is generally more advertising than consumer Nearly all digital growth is garnered by Google and Facebook Mobile exceeds desktop advertising revenue and audience and should be the focus It’s all about engagement…if you are in the media business you are in the audience engagement business… 6
  7. 7. Total Ad Revenue vs. Circulation Revenue Total Ad Revenue [print + digital] has been negative since 2011 and gap increasing Circulation revenue has benefited from all-access and increased rates for print 7 -9.0% -0.5% 4.7% 4.5% 2.5% -0.3% -7.9% -16.6% -27.2% -6.3% 4.8% -6.5% -6.8% -6.4% -7.8% -10.3% 2.3% 2.3% 1.8% -2.1% -2.2% -1.8% -2.4% -2.0% -0.2% 4.6% 1.8% 1.0% 1.2% 0.4% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F US Newspaper Revenue YoY Change - 2000 to 2016F | Pew Advertising Circulation Great Recession All Access Begins
  8. 8. -0.3% -0.7% 0.0% -1.0% -2.3% -1.9% -3.0% -4.2% -6.1% 0.0% 0.0% -2.2% -6.3% -0.7% -6.7% -8.1% -0.6% -0.5% -0.5% -1.3% -4.3% -3.8% -3.6% -4.2% -6.0% -7.6% -3.4% -1.2% -4.2% -7.7% -9.0% -8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 US Newspaper Circulation Volume YoY Change - 2000 to 2016F | Pew Weekday Sunday Circulation Volume Circulation declines started in 2005 well before rate increases Volume declined with all-access rate increases in 2012 Volume declines continue as Publishers continue to raise rates 8 Great Recession All Access Begins
  9. 9. Digital Ad Spending 9 $71.6 $83.0 $93.8 $105.4 $117.5 $129.2 36.7% 40.1% 42.8% 45.5% 47.8% 49.9% 19.7% 15.9% 12.9% 12.5% 11.5% 10.0% $0 $20 $40 $60 $80 $100 $120 $140 2016 2017 2018 2019 2020 2021 US Digital Ad Spending ($Blns) - 2016-2021F | eMarketer Ad Spend % Media Spend YoY Change Digital ad spending continues to gain market share Digital growth is slowing
  10. 10. Programmatic Digital Ad Spending Programmatic will dominate digital spending Significant early growth moderating 10 $17.5 $25.5 $32.6 $39.1 $45.7 51.0% 45.6% 27.8% 20.1% 16.9% 65.0% 73.0% 78.0% 81.5% 83.6% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2015 2016 2017 2018 2019 US Programmatic Ad Spending ($Blns) - 2016-2021F | eMarketer Ad Spend YoY Change % Digital Spend
  11. 11. The CEO Panel What’s Next Vail Roundtable August 15, 2018 | Confidential Document

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