Midyear Media Review June 24, 2003 New York Midyear Media Review June 24, 2003 New York.

Midyear Media ReviewJune 24, 2003 New YorkMidyear Media ReviewJune 24, 2003 New York

Business is SolidBusiness is Solid

Consolidated revenue grewnearly 6% in May

Publishing +3%TV +12%

Positive trends continue Publishing: improving in JuneTV: Q2 on plan

Consolidated revenue grewnearly 6% in May

Publishing +3%TV +12%

Positive trends continue Publishing: improving in JuneTV: Q2 on plan

Cash flow: $1.6B

Free cash flow: $800M

Debt: $2.5B by the end of year

Debt/operating cash flow: 1.5X

Cash flow: $1.6B

Free cash flow: $800M

Debt: $2.5B by the end of year

Debt/operating cash flow: 1.5X

2003: Financially Well-positioned2003: Financially Well-positioned

June 2nd FCC RulingJune 2nd FCC Ruling

Cross-ownership ban effectively eliminated

TV ownership cap now 45%

Restrictions on two-station clusters loosened

TRB in compliance in all our markets

Cross-ownership ban effectively eliminated

TV ownership cap now 45%

Restrictions on two-station clusters loosened

TRB in compliance in all our markets

Simple Consistent StrategySimple Consistent Strategy

Operate strong mass-media franchises in major markets

Extend existing brands, developnew products

Share content, cross promote brands, cross sell advertising among our businesses

Operate strong mass-media franchises in major markets

Extend existing brands, developnew products

Share content, cross promote brands, cross sell advertising among our businesses

Value of Local Mass MediaValue of Local Mass Media

Major Market Local Mass MediaMajor Market Local Mass Media

Top 3 Markets: 16% total U.S. population25% HH incomes $150,000+

Jack FullerPresident, Tribune PublishingJack FullerPresident, Tribune Publishing

Tribune PublishingTribune Publishing

Well positioned for return of Help Wanted advertising

Success of preprint strategy

New product development

Well positioned for return of Help Wanted advertising

Success of preprint strategy

New product development

Impact of Economic DownturnImpact of Economic Downturn

Tribune Newspaper Help Wanted RevenuesTribune Newspaper Help Wanted Revenues

$300M

$600M

20002000 20022002

Jun-90Jun-89 Jun-91 Jun-91

90 -91 Recession Current trend remains below 1991 recovery

Job Creation: YOY ChangeJob Creation: YOY Change

Current Recession

Mar-01Mar-00 Mar-02 Mar-03

-2%

-1%

0%

1%

2%

3%

Labor Force Demand Labor Force Demand

Labor Available

Labor Needed Shortageof 3 millionemployees

2002 2004 2006

140

150

160

Million

2008

Print + Online = Powerful ComboPrint + Online = Powerful Combo

Source: 2002 Gallup Poll of Media Usage & Consumer BehaviorSource: 2002 Gallup Poll of Media Usage & Consumer Behavior

Neither9%

Print and Online38%

Online Only6% Print

Only47%

85% of job seekers would use a newspaper intheir job search

CareerBuilder FlexAdsCareerBuilder FlexAdsIntegrated print and online solution

Tremendous local reach

Monster & HotJobs can’t compete

25% conversion rate

Consumer Promotion WorksConsumer Promotion Works

+46%

Q4 – Q1

+46%

Q4 – Q1

Unique VisitorsUnique Visitors

Sources: The Media Audit Dec ‘02-Jan ‘03; CareerBuilder net audience estimated with print sectional audience from Gallup Poll of Media Usage 2001 and online internal Sage measurement; Chicago job counts from 3/24/03, jobs posted in past seven days; CareerBuilder online jobs include newspaper upsells.

Chicago ComparisonChicago Comparison

1.6M

.8M

Twice as manyjob seekers

MonsterCareerBuilderPrint/Online

Chicago ComparisonChicago Comparison

Advertisers get BOTH print and online for only $55 more

$360Print

&Online

$305Onlin

e Only


Sources: The Media Audit Dec ‘02-Jan ‘03; CareerBuilder net audience estimated with print sectional audience from Gallup Poll of Media Usage 2001 and online internal Sage measurement; Chicago job counts from 3/24/03, jobs posted in past seven days; CareerBuilder online jobs include newspaper upsells.

Blue Collar Job CountBlue Collar Job CountOver 75% of U.S. jobs


2,508

1,385

Blue Collar postingsin Chicago

Corzen, Inc. job counts for the week of 6/15/03

Blue Collar Job SegmentBlue Collar Job SegmentOver 75% of U.S. jobs

Continued Preprint GrowthContinued Preprint Growth

Preprint revenue up 31% past 5 years

$550M in 2002

+70% market share in many markets

Preprint revenue up 31% past 5 years

$550M in 2002

+70% market share in many markets

Continued Preprint GrowthContinued Preprint Growth

Market shareup 2% to 33%

Market shareup 4% to 71%

$227M Market $400M Market

New products – LA DistinctionNew products – LA Distinction

Luxury magazine targeting affluentLos Angelenos

September launch

Newsday DistinctionNewsday Distinction

Launched in 1996

High-end lifestyle magazine

Controlled circulation

Highly targeted: $150,000+

New products – RedEyeNew products – RedEye

RedEye on TargetRedEye on Target

Average reader is younger, more affluent than readers of Sun Timesor Chicago Reader

Over 170 new local accounts

Average reader is younger, more affluent than readers of Sun Timesor Chicago Reader

Over 170 new local accounts

Success in New YorkSuccess in New York

Success in New YorkSuccess in New York

#1 Spanish-language daily in New York

Daily circulation up 21%

91,000 daily circulation

#1 Spanish-language daily in New York

Daily circulation up 21%

91,000 daily circulation

Positioned for GrowthPositioned for Growth

Integrated print/online Help-Wanted products

Preprint investments paying off

Cost-efficient & demographically targeted new products

Integrated print/online Help-Wanted products

Preprint investments paying off

Cost-efficient & demographically targeted new products

Patrick MullenPresident, Tribune BroadcastingPatrick MullenPresident, Tribune Broadcasting

1991: 6 Stations

Building ScaleBuilding Scale

Building ScaleBuilding Scale 2003: 26 Stations in 22 top markets

8 of Top 10 Markets40% of U.S. Households

Tribune TV:Tribune TV:DistributionDistribution

Los Angeles

Chicago

Dallas

New York

Boston

PhiladelphiaWashington, D.C.

AtlantaSan Diego

Sacramento IndianapolisDenver

Miami

Houston

Hartford

Seattle

St. Louis

PortlandGrandRapids

Harrisburg

Albany

New Orleans

18 of Top 30

Growth Strategies Growth StrategiesTribune TV:Tribune TV:

Focus on Top 30 Markets

•54% of all TV households

•64% of spot revenue

Acquisitions

Tribune TV:Tribune TV: Growth Strategies Growth Strategies

Build 2-station Clusters

Existing markets


St. LouisSt. Louis#22#22

IndianapolisIndianapolis#25#25

PortlandPortland#23#23

Television Group ExpansionTelevision Group Expansion


Superstation WGN

National cable channel





Tribune Entertainment


Superstation WGN

Barter Syndication

Leading Program BuyerLeading Program BuyerAccess to best syndicated Access to best syndicated showsshowsFlexible licensingFlexible licensing

Early & late fringe account for Early & late fringe account for over 40% of station revenueover 40% of station revenue

Benefits of ScaleBenefits of Scale5th Largest Station Group

Television Network Television Network

CPMCPMincreasesincreases

overover20%20%

BestBestof ANYof ANY

networknetwork

Year to dateYear to date

+17% Adults 18-34+17% Adults 18-34

+13% Adults 18-49+13% Adults 18-49

$710M in upfront sales$710M in upfront sales

Fastest growing network in November, Fastest growing network in November, February and May Sweeps! February and May Sweeps!

Tribune delivers over 50% ofTribune delivers over 50% of network’s prime-time audience network’s prime-time audience

Two-Station ClustersTwo-Station Clusters

SeattleSeattle New OrleansNew Orleans

HartfordHartfordIndianapolisIndianapolis

Two-Station Cluster AdvantagesTwo-Station Cluster Advantages

Shared facilitiesShared facilities

Backroom operationsBackroom operations

Cross-promotionCross-promotion

Coordinated sellingCoordinated selling

Two-Station Cluster AdvantagesTwo-Station Cluster Advantages

“Market Licenses”Provides flexibility to airProvides flexibility to airshows on either or both stationsshows on either or both stations

25%

35%

45%

'95 '96 '97 '98 '99 '00 '01 '02 '03

TV Group Cash Flow MarginsTV Group Cash Flow Margins

+ 8 pts. Since 1995

34%34%

42%42%

Valuable National AssetsValuable National Assets

57+ million homes57+ million homes

Dual revenue streamDual revenue stream

Valuable National AssetsValuable National Assets

Cross-selling Content Sharing Cross-promotion

$70M incremental revenue – over HALFfrom cross-media advertising sales in 2002

Creating Cross-media ValueCreating Cross-media Value

Dennis FitzSimonsPresident and CEODennis FitzSimonsPresident and CEO

Be a leader in TV consolidationExpand national footprintContinue to build two-station clustersGrow market share

Grow our newspaper businessLeverage brands, infrastructureWin in Classifieds: print and onlineCreate value with interactive

Continued financial discipline

Be a leader in TV consolidationExpand national footprintContinue to build two-station clustersGrow market share

Grow our newspaper businessLeverage brands, infrastructureWin in Classifieds: print and onlineCreate value with interactive

Continued financial discipline

Tribune StrategiesTribune Strategies

Ad Recovery PotentialAd Recovery Potential

Midyear Media ReviewJune 24, 2003 N e w Y o r kMidyear Media ReviewJune 24, 2003 N e w Y o r k

Midyear Media Review June 24, 2003 New York Midyear Media Review June 24, 2003 New York.

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