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TRANSCRIPT
NIELSEN INVESTOR OVERVIEW MAY 2015
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FORWARD LOOKING STATEMENTS
The following discussion contains forward-looking statements, including those about Nielsen’s outlook and prospects, in the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those which are not historical facts. These and other statements that relate to future results and events are based on Nielsen’s current expectations as of May 11, 2015.
Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. The risks and uncertainties that we believe are material are outlined in our disclosure filings and materials, which you can find on http://nielsen.com/investors. Please consult these documents for a more complete understanding of these risks and uncertainties. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Our outlook is provided for the purpose of providing information about current expectations for 2015. This information may not be appropriate for other purposes.
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NIELSEN AT A GLANCE
Measurement and analytics for content, advertising and activity for
television, digital, social and audio
Measurement and analytics for sales, market share and consumer goods
Adjusted EBITDA Margin
44% 2014 Revenue
$3.4B Adjusted EBITDA Margin
19% 2014 Revenue
$2.8B
2014 Revenue
$6.3B 2014 Free Cash Flow
$681M
2014 Adjusted EBITDA Margin
29.2%
Dividend Yield
2.4% Market Cap
$16.7B Private Equity Ownership
4.4%
Market Cap and Dividend Yield are reported as of 5/11/15
Watch 44%
Buy 56%
Cash returned to shareholders over 2013-2014
$1.1B
Revenues recurring in nature
~70%
Our focus is to drive shareholder value through consistent growth, profitability and free cash flow generation
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NIELSEN’S BUSINESS STRATEGY & OBJECTIVES
BUY
WATCH
Expand coverage of consumer purchase behavior globally
Capture Total Audience across all screens and platforms
MARKETING EFFECTIVENESS
Help clients understand how individuals’ viewing behavior impacts purchase behavior
OUR VALUES
OPEN
SIMPLE
INTEGRATED
OUR BRAND
QUALITY
INTEGRITY
NEUTRALITY
Execution of our strategy drives shareholder value through the cycles
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THE NIELSEN VALUE PROPOSITION
CONSUMER FOCUS
PERFORMANCE MANAGEMENT
GLOBAL PRESENCE
BROADCAST TV
CABLE SATELLITE TV
TIME SHIFTING
DIGITAL
WATCH MOBILE
BUY
GROCERY MASS RETAIL
DRUG STORE
CLUB OUTLETS
SPECIALTY STORE
E-COMMERCE
TOTAL AUDIENCE
TOTAL CONSUMER
Well positioned to meet client needs of today and tomorrow
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COMPELLING FINANCIAL PERFORMANCE
• 5% revenue CAGR(a) from ‘09 to ’14 • 35 quarters of consecutive growth
• Investing in key growth opportunities
• Powerful syndicated business model
• Disciplined pricing and cost-out initiatives • ~3pts of margin expansion ‘09 to‘14
• 24% CAGR(b) from ‘09 to ’14 • Sustainable capital efficiency
• De-levered from 9.1x to ~3.6x between ’06 to ’14
• Tremendous flexibility to invest in growth • ~$1.1B back to shareholders through 2013-2014
POWERFUL FREE CASH FLOW
BALANCED CAPITAL ALLOCATION
CONSISTENT REVENUE GROWTH
MARGIN EXPANSION
RESULTS
Note: a) Revenue CAGR derived on a constant currency basis, excludes Audio and Harris acquisitions b) Free Cash Flow CAGR is as reported
Strong track record of delivering consistent results
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WHY INVEST IN NIELSEN?
Measuring the Total Consumer and Total Audience
Unmatched global footprint of 106 countries
“Mission critical” measurement and analytics embedded in client workflows
Syndicated, scalable products and services
Strategic investments to drive continued and future growth opportunities
Proven track record of growth and economic resilience
Strong free cash flow generation and compelling capital allocation strategy
Driving shareholder value is the cornerstone of our strategy
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OUR GROWING GLOBAL FOOTPRINT
2014 REVENUE DISTRIBUTION
U.S. & Canada 58%
Western Europe 16%
Asia <15%
LatAm, Africa, <15%
Middle East, Eastern Europe
Nielsen presence
~20% of revenues in emerging markets, growing at double digit pace
…underscored by a global employee base of 42,000 talented associates we work hard to attract, develop and retain
Our focus is relentless on our pursuit to provide clients with the most complete understanding of what consumers buy and watch in 106 countries…
2014 REVENUE DISTRIBUTION
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LONG-TERM, BEST-IN-CLASS CLIENT BASE BUY WATCH
• 20,000+ clients • Relationships with top 10 clients
for over 30 years • Long-term contracts provide
stable, recurring revenues – average length of 3-10 years
• No client represents more than 3% of 2014 revenues
HIGHLIGHTS
PARTNERSHIPS
For 90 years, we have been at the forefront of measuring consumers around the world, helping clients drive better business decisions and profitable growth over time
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NLSN 1Q 2015 Results C
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2015
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Q1 UPDATE ON KEY GROWTH CATALYSTS
• Watch: Total Audience Measurement progress
Total Audience: framework for comprehensive measurement of the consumer
Traction with signature-based VOD solution
Gaining critical mass in mobile measurement with SDK adoption…video and audio
Digital Ad Ratings (fka OCR) momentum and market expansion
Rollout of Digital Content Ratings (with Adobe) on track
• Marketing Effectiveness: Strong growth in demand for marketing ROI products
• Buy: Unmatched global presence
New client wins
Stronger discretionary spend on innovation and analytics
Broad-based Emerging market growth
Progress in eCommerce: new partnerships, New Offer Advisor launch
Executing and delivering
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STRATEGIC IMPERATIVE: MEASURE THE TOTAL AUDIENCE
Ads includes ratings regardless of where + how ad is consumed,
including both linear and dynamic ad models
Content combined ratings for a program
or content regardless of where + how content is consumed, including both
linear TV viewing and dynamic TV/ video viewing
TOTAL AUDIENCE
unduplicated across all devices
and business models
Framework that integrates our capabilities to offer comparable measurement
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WHAT CONSUMERS BUY
2B electronic
records collected weekly
1.7M+ store
visits monthly
25M+ characteristics
collected for 30M products
3M store level data files annually
16M consumer surveys
per year
Broad, unparalleled reach of consumers worldwide
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DEVELOPED MARKETS: $2.4B EMERGING MARKETS: $1.1B
BUY: PROVIDING MEASUREMENT AND ANALYTICS Total 2014 Revenue: $3.5B…Approximately 60% recurring in nature
Our measurement and analytics are embedded in the operating
disciplines of our clients, helping to drive their growth
Marketing C-Suite Supply Chain
Research Sales Investor and
Media Relations
Retail sales measurement and market share information
• Presence in 106 countries
• Measure billions of monthly point-of-sale transactions
• Store level data from nearly 2 million stores, supplemented from proprietary household level data from 240K households
Advanced analytical capabilities and solutions
• Demand strategy
• Help clients “see around corners”
• Product Innovation
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DIGITAL SHOPPING & E-COMMERCE
INSIGHT TO UNDERSTAND THE 21ST
CENTURY SHOPPER BEHAVIOR AND SEGMENTATION
COMPETITIVE BENCHMARKS
AND ANALYTICS TO WIN
@THE DIGITAL SHELF
DELIVER SHARE MEASUREMENT FOR E-
COMMERCE COMPARABLE TO BRICK & MORTAR
DELIVER SHARE MEASUREMENT FOR E-COMMERCE COMPARABLE TO BRICK &
MORTAR
Presence in 5 markets (UK, France, Spain, China, and Korea); plans to expand across
NA, Europe and SE Asia
Nielsen Omnichannel for an Alibaba key account in China to compliment the channel
measurement
Recent launch of New Offer Advisor (NOA), innovative analytical tool in partnership
with Alibaba
INSIGHT TO UNDERSTAND THE 21ST CENTURY SHOPPER BEHAVIOR AND
SEGMENTATION
Insights on how shoppers browse and buy across devices
Shopper segmentations to guide communication and engagement plans
Measure shoppers and content similar to media
COMPETITIVE BENCHMARKS AND ANALYTICS TO WIN
@THE DIGITAL SHELF
Insights to understand and improve the digital shelf conditions
Analytics to optimize assortment choice for multi-channel retail
SALES SHOPPER SHELF
Powerful long-term opportunity for Nielsen
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EMERGING MARKETS
10% CAGR
$0.6B
$1.1B
$0.4B LOCALS
$0.7B GLOBAL MNCs
10-30% Growth
Biggest increase ever Acceleration with locals Source: OECD; CAGR represented in constant currency
3.7B
7.0B
8.3B
GROWTH OF MIDDLE CLASS EMERGING MARKETS REVENUE
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WHAT CONSUMERS WATCH
181M Watching
Time-Shifted TV
258M Listening to
AM/FM Radio
146M Watching Video
on Internet
164M Using App/Web on
a Smartphone
142M Using Social Media
on an App on a Smarthphone
Measuring Total Audience across screens
* Number of users engaging with these forms of media
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WATCH: MEASURING THE TOTAL AUDIENCE Total 2014 Revenue: $2.8B…Approximately 85% recurring in nature
Global television audience measurement
• A leader in US television advertising
• Television audience measurement in 35 countries
• Proprietary data methods
• Gold standard, MRC accredited panel
Digital measurement, audience analytics and consumer research
• Digital Ad Ratings
• Digital Content Ratings
• Mobile measurement
• VOD Measurement
• A leader in social media measurement
• Strategic relationships (Adobe, Experian, Facebook, Twitter)
Our measurement and analytics are embedded in the operating
disciplines of our clients, helping to drive their growth
Media Executives
Programmers Media Sales
Agencies and
Advertisers
Marketing Investor and Media
Relations
TELEVISION DIGITAL
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Programs & Ads
Content
Ads
TV CONNECTED TV PC TABLET SMARTPHONE
linea
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yna
mic
C3/C7/Program Ratings
Digital Ad Ratings
Digital Content Ratings
THE ONLY TOTAL AUDIENCE MEASUREMENT
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Mobile Measurement
Audio Measurement
Video on Demand VOD
Digital Content Ratings DCR
Digital Ad Ratings DAR
Working with 49 broadcasters and cable networks & 15 distributors Gaining critical mass > 30 players across the industry working to implement SDKs in apps and players
Using audio signatures to measure audience 14 networks and studios are now signed up Additional capabilities in 2016 20 of the Top 25 advertisers endorse DAR Strong renewals Expansion into 7 new international markets (including China)
Partnership with Adobe progressing well Targeted Launch : September 30th 2015
TOTAL AUDIENCE MEASUREMENT…TRACKING PROGRESS
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DIFFERENTIATED CROSS PLATFORM ARCHITECTURE
TWO TYPES OF CONTENT
Native Digital Content
HARDWARE METER
Linear Ratings
GOLD STANDARD
PROCESS
ONE ENCODING PROCESS
COMPARABLE OVERNIGHT RATING
Digital Ratings
Total Audience
Traditional Linear Content
MRC ACCREDITED UNIVERSAL
BIG DATA ENABLED
MEASUREMENT
HARDWARE & SOFTWARE
METER
ONE CLIENT-SIDE IMPLEMENTATION
SDKs
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NIELSEN AUDIO
• Digital Audio (Streaming) Audience Measurement: 2+ hours of consumer’s day
• Audio ROI…linking listening behavior to consumer purchasing habits
• Global expansion
• Working with more than 30 players across the industry to implement our SDK in their apss and players
LONG TERM GROWTH OPPORTUNITIES
Advertisers gain an average of $6 for each $1 spent on radio(a)
(a) Source: Nielsen Catalina Solutions
Expanded measurement of US consumers by 2+ hours
Radio listening measured in 270+ markets
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MARKETING EFFECTIVENESS: WHERE WATCH MEETS BUY
REACTION RESONANCE REACH HOW DID IT
CHANGE BEHAVIORS?
HOW DID IT
CHANGE ATTITUDES?
WHAT TOTAL
AUDIENCE DID I REACH?
Helping clients understand how individuals’ viewing behavior is impacting their purchasing behavior to increase ROI marketing efforts
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NIELSEN MARKETING EFFECTIVENESS SOLUTION Nielsen integrates with 1st party datasets to provide total view
OUR CAPABILITIES IMPACT
PLANNING
OPTIMIZATION
ROI
SHIFT MEDIA PLANNING FROM DEMOGRAPHICS TO DEMOS+
ENABLE MARKETERS TO MAKE ADJUSTMENTS TO PLANS INFLIGHT
Match 1ST party data to Nielsen total audience measurement
Integrate daily total audience reach within overall marketing data sets
Assemble longitudinal view of all marketing elements and actual sales
DRIVE HIGHER ROI / BUILD STRONGER BRANDS
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NIELSEN IS UNIQUELY POSITIONED
DATA OWNERS TRUST NIELSEN
CONNECT AND ACTIVATE
UNIQUE ABILITY TO ENRICH DATA
• 90+ years with retailers, media and manufacturers • Independent 3rd party • Sterling reputation with regard to consumer privacy
• Most experienced measurement scientists anywhere • Proprietary panels – the source of truth • Reference data and hierarchies across Watch & Buy
• Combine with Nielsen’s industry standard datasets • Embed in systems across the ecosystem
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MARKETING EFFECTIVENESS: GROWTH OPPORTUNITIES
MARKETING WILL CONTINUE TO GROW MORE COMPLEX
THE VOLUME AND GRANULARITY OF WATCH AND BUY DATA WILL CONTINUE TO EXPAND
NO DATA SET ON ITS OWN WILL TELL THE COMPLETE STORY…OUR PANEL IS CRUCIAL
NIELSEN IS THE ONLY COMPANY POSITIONED TO ASSEMBLE THE TOTAL VIEW
WE ARE UNIQUELY TRUSTED TO PROTECT CONSUMER PRIVACY AND THE DATA OWNER’S SECURITY
WE CAN EXTEND BEYOND CPG TO VIRTUALLY ANY CONSUMER CATEGORY
FINANCIALS
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CONSISTENT PERFORMANCE THROUGH THE CYCLES
Note: Revenue and Adjusted EBITDA growth rates derived on a constant currency basis. Adjusted Net Income and Free Cash Flow growth rates are as reported. (a) Revenue CAGR excludes Audio and Harris acquisitions; figures are as reported (b) Reflects Net Debt (gross debt minus cash), divided by Adjusted EBITDA calculated on last twelve months. 2013 is ProForma and includes nine months of Arbitron Adjusted EBITDA of $117 million. 2011 and 2012 exclude $288M of mandatory convertible subordinated debt (c) Excludes impact of 2011 Sponsor Termination Fees ($102M) and 2013 one-time Arbitron deal-related costs ($46M)
5% CAGR(a)
9% CAGR
REVENUE ($B) ADJUSTED EBITDA ($B) ADJUSTED NET INCOME ($B)
42% CAGR $970
$1.8
NET DEBT LEVERAGE RATIO(b) FREE CASH FLOW ($M)(c)
24% CAGR
3.6x
$681
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2.3% 7.4% 5.8% 3.6% 3.1% 3.6%
STEADY SEGMENT REVENUE GROWTH BUY SEGMENT
($ BILLIONS) WATCH SEGMENT
($ BILLIONS)
CONSTANT CURRENCY
GROWTH 11.4% 4.6% 5.2% 4.8% 5.2% 5.8%
2009-2014 CAGR 5% 2009-2014 CAGR 5%
CONSTANT CURRENCY GROWTH
Note: Figures are as reported, CAGR and CC% represented in constant currency (excluding Audio and Harris acquisitions).
$3.5 $2.8
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SELECTED FINANCIAL METRICS & BALANCE SHEET ITEMS ($ in millions)
FINANCIAL METRICS
1Q 15
Free Cash Flow $(1)
Capital Expenditures $102
D&A $142
Net Book Interest $72
Cash Taxes $29
Cash Restructuring $22
Wtd. avg. diluted shares 375.4
BALANCE SHEET – 3/31/15
Gross Debt $7,347
Cash $343
Net Debt $7,004
Net Debt Ratio (a) 3.80x
(a) Reflects net debt (gross debt minus cash), divided by Adjusted EBITDA calculated on last twelve months basis. (b) Excludes Revolver ($75m), Capital Leases ($116m) and Miscellaneous Debt ($9m)
CURRENT DEBT MATURITY PROFILE – 3/31/15 (b)
$73
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STRONG FREE CASH FLOW
CAGR 24%
$209
Note: defined as cash flow from operations, normalized for non-recurring Arbitron transaction costs, less CapEx..Excludes $102M sponsor termination fee paid in 2011 and $46M in certain Audio deal-related costs paid in 2013.
Strong free cash flow supports growth investments and increased shareholder returns
($ in millions)
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DRIVING SHAREHOLDER VALUE THROUGH CAPITAL ALLOCATION
BALANCED CAPITAL ALLOCATION RECENT ACTIVITY
Successful integration of Arbitron and Harris acquisitions
Updated long-term leverage target to 3.0x area
Refinanced ~$5B of debt stack at attractive rates
Raised quarterly dividend by 12% to $0.28; up 75% since inception
~$1.5B buyback authorization - ~$0.5B completed by year-end 2014 - ~$1B to be executed by mid-2016
STRONG BALANCE
SHEET
Free Cash Flow + Balance Sheet
Dividend ~45%
Mandatory Debt ~15%
Buyback / Tuck-in BD
~40%
Committed to grow and return capital to investors
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NIELSEN ACQUISITIONS & JOINT VENTURES Company Capabilities
Marketing Analytics SaaS tool replacing PowerPoint analysis with real time, predictive analytics for marketing mix models
Neurofocus Neurological testing for consumer research
Retail Plus (JV) Measuring / monitoring sales and marketing of products in fast moving consumer goods sector
MEMRB Expansion of retail services within Middle East/Eastern Europe; synergies across several countries
Carrier IQ On-device meters for service quality measurement
Social Guide Twitter TV ratings
Vizu Marketing effectiveness
Ibope (JV) Television audience measurement for Mexico, Dominican Republic and Venezuela
Ipsa Retail Measurement Services (RMS) /Consumer Panel Services (CPS) in Ecuador
Perishables Group Product expansion for retail services
Arbitron Radio audience measurement
Bowker E-books
MediaXIM Belgium and Netherlands advertising info services
G4 Trade promotion optimization; Leader in SaaS analytics solutions for CPG companies
Nielsen Innovate Israel based incubator investing in startups that help Nielsen clients (10 countries)
Harris U.S. custom surveys
Nexium Retail shelf image identification technologies that replace manual inventory management systems
MMRD (JV) RMS in Myanmar
Czech TAM (JV) Television audience measurement
Affinova Intuitive user interface platform and automated analytics capabilities; Nielsen’s Innovation Practice
eXelate Digital audience intelligence in the Programmatic Media ecosystem
20
11
2
01
4
20
12
20
13
2015
Approximately $2B in acquisitions and JVs since 2011, driving growth, value & returns
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FOREIGN CURRENCY IMPACT
2014 CURRENCY PROFILE - REVENUE PROJECTED FX IMPACT(a):
REPORTED VS CONSTANT CURRENCY
(a) Projected impact assumes rates in effect at 4/21/15 remain in effect for the balance of 2015. Also based on company estimates for future quarters on distribution of revenue and EBITDA by currency.
Note: we report on a constant currency basis to reflect operating performance
No single currency is >3%, excluding USD, CAD, EUR, CNY & GBP
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2015 GUIDANCE – APRIL 22, 2015 (Revenue and adj. EBITDA margin growth in constant currency)
Total Revenue 4.0% - 6.0%
Adj. EBITDA margin growth 50 - 70bps
Adj. Net Income Per Share(a)
$2.60 - $2.66
Leverage
~ 3.6x
Free Cash Flow
$850-$900M
Net book interest
$310M - $320M
Cash taxes $160M - $170M
Cash restructuring $50M - $75M
Est. wtd. avg. diluted shares outstanding for FY 2015 ~ 371M
OTHER FINANCIAL METRICS
ANI per share lower due to FX; Operating guidance reaffirmed
(a) Prior ANI per share guidance range: $2.68 - $2.74
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2015 REVENUE RANGE (Percentages reflected as constant currency)
New client wins
Moderate recovery in global discretionary spend
Emerging markets fueled by local clients
Ongoing success with total audience measurement
Continued traction with digital ratings
Momentum in Ad Solutions (Marketing Effectiveness)
Audience Measurement 5.0 – 6.0%
Ad Solutions (Marketing Effectiveness) 10.0 – 15.0%
Watch 4.5 – 6.5%
Other (5) – 0% Watch
Buy
$2.8B
$3.5B
$6.3B
Developed 1.5 – 3.5% 8.0 – 10.0% Emerging
Buy
RANGE DRIVERS 2015 RANGE 2014
Note: Figures are as reported
3.5 – 5.5%
Total Nielsen revenue expected to grow 4-6%
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LONG TERM FINANCIAL TARGETS
REVENUE GROWTH MID-SINGLE DIGIT
ADJUSTED EBITDA GROWTH 1X - 2X REVENUE
EMERGING MARKET GROWTH DOUBLE DIGIT
ADJUSTED NET INCOME PER SHARE GROWTH DOUBLE DIGIT TO MID-TEENS
CASH TAX RATE MID-TEENS TO LOW 20’S
TARGET LEVERAGE 3.0X AREA
DIVIDEND GROWTH IN-LINE WITH EARNINGS GROWTH
Note: All measures represented on constant currency basis; excludes Adjusted Net Income per share growth.
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CERTAIN NON-GAAP MEASURES Overview of Non-GAAP Presentations We use the non-GAAP financial measures discussed below to evaluate the results of our operations. We believe that the presentation of these non-GAAP measures provides useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.
Constant Currency Presentation We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. Net Debt and Net Debt Leverage Ratio The net debt leverage ratio is defined as net debt (gross debt less cash and cash equivalents) as of the balance sheet date divided by Adjusted EBITDA for the twelve months then ended. Net debt and the net debt leverage ratio are commonly used metrics to evaluate and compare leverage between companies and are not presentations made in accordance with GAAP.
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CERTAIN NON-GAAP MEASURES (continued)
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our consolidated statements of operations before interest income and expense, income taxes, depreciation and amortization, restructuring charges, goodwill and intangible asset impairment charges, stock-based compensation expense and other non-operating items from our consolidated statements of operations as well as certain other items considered unusual or non-recurring in nature. We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors.
Adjusted Net Income
We define Adjusted Net Income as net income or loss from our consolidated statements of operations before income taxes, depreciation and amortization associated with acquired tangible and intangible assets, restructuring charges, goodwill and intangible asset impairment charges, other non-operating items from our consolidated statements of operations and certain other items considered unusual or non-recurring in nature, reduced by cash paid for income taxes. Also excluded from Adjusted Net Income is interest expense attributable to the mandatorily convertible subordinated bonds converted on February 1, 2013. Adjusted Net Income per share of common stock presented on a diluted basis includes the weighted-average amount of shares of common stock convertible associated with the mandatorily convertible bonds based upon the average price of our common stock during the periods beginning on or before February 1, 2013. Such shares are considered anti-dilutive in accordance with GAAP for the periods presented. Free Cash Flow We define free cash flow as net cash provided by operating activities, normalized for non-recurring Arbitron transaction costs, less capital expenditures. We believe providing free cash flow information provides valuable supplemental information regarding the cash flow that may be available for discretionary use by us. Free cash flow is not a presentation made in accordance with GAAP.
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ADJUSTED NET INCOME RECONCILIATION ($ in millions except per share amounts)
Net income $381 $736 $272 $87 $133 $(489) $(589) (Income)/ loss from discontinued
operations, net of tax -- (305) (30) (26) 13 132 257
Interest expense, net 297 307 386 443 614 598 633 Provision / (benefit) for income taxes 236 91 122 6 (54) (152) 26
Depreciation and amortization 573 510 493 502 530 519 462 EBITDA 1,487 1,339 1,243 1,012 1,236 608 789
Impairment of goodwill and intangible – – – – 402 95 Equity in net (income)/ loss of affiliates 4 (2) (5) (3) (5) 22 7 Other non-operating loss/(income), net 171 34 135 219 (28) 84 6
Restructuring charges 89 119 85 83 59 60 118 Stock-based compensation expense 47 47 34 27 18 14 18
Other items (a) 39 80 12 112 44 36 54
Adjusted EBITDA 1,837 1,617 1,504 1,450 1,324 1,226 1,087 Interest expense, net (297) (307) (386) (443) (614) (598) (633)
Depreciation and amortization (573) (510) (493) (502) (530) (519) (462) Depreciation and amortization of
acquisition-related tangible and intangible assets
204 162 145 161 196 211 208
Cash paid for income taxes (154) (147) (124) (132) (129) (139) (91) Stock-based compensation expense (47) (47) (34) (27) (18) (14) (18)
Interest expense attributable to mandatory convertible bonds -- 2 23 21 – – –
Adjusted net income 970 770 635 528 229 167 91 Adjusted net income per share of common
stock, diluted $2.52 $2.02 $1.69 $1.44 $0.82 $0.61 $0.40
2013 2012 2011 2010 2009 2008 2014
(a) Other items primarily consist of non-recurring items, sponsor termination fees (2011), and acquisition adjustments
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WEIGHTED AVERAGE SHARES OUTSTANDING ($ in millions except per share amounts. Year ended December 31 for all years.)
Weighted-average shares of common stock outstanding as of
December 31, basic 379,333,037 375,797,629 361,787,868 352,469,181 276,499,073 273,905,810
Dilutive shares of common stock from stock compensation plans 5,038,415 5,130,337 4,523,116 5,032,773 3,153,513 –
Shares of common stock convertible associated with the mandatory
convertible bonds -- 896,994 10,416,700 9,531,994 – –
Weighted-average shares of common stock outstanding as of
December 31, diluted 384,371,452 381,824,960 376,727,684 367,033,948 279,652,586 273,905,810
2009 2013 2011 2010 2012 2014
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FREE CASH FLOW RECONCILIATION ($ in millions. Year ended December 31 for all years.)
Net cash provided by operating activities $1,093 $901 $784 $641 $543 $517
Sponsor termination fee -- – – 102 – –
Capital expenditures (412) (374) (358) (367) (334) (282)
One-time Arbitron costs -- $46 –
–
–
–
Free Cash Flow $681 $573 $426 $376 $209 $235
2009 2013 2011 2010 2012 2014
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