Months to Moments Strategy and Plans for Future Growth

Duncan Edwards, President and CEO

Perhaps the most exciting time

ever to be in the content business.

A global, digital and mobile,

content business delivering

large-scale audiences around

well-defined media brands…

But the old business models for global publishers have to change.

We will need new business models in print

Consumer demand is the only common and comparable currency.

We will need to adopt measurement tools that truly reflect our scale

Print + Digital

Editions

Websites (Desktop/la

ptop/ mobile)

Video Social Media

100 200 300 400 500 600 700 800 900 1.000

940M women 18 –34, globally

25% global smartphone penetration

about 750 million if the rest of the world looked like US 18 –29 (about 90% of Americans 18 –29 had a smartphone in 2015)

Almost 1 billion young women will have a smartphone in the next 5 years.

http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/ Source: eMarketer, April 2015 and GfK MRI Spring 2015

This unstoppable urge to check the phone forces all media organizations to embrace a high-velocity, news-driven future.

The average smartphone consumer checks his/her phone

per day Source: Kleiner Perkins Caufield & Byers’s annual Internet Trends Report

A new group of publishers and platforms are embracing a global media opportunity.

Mobile focus

High-velocity original content

Global platform

Native ads

Agency services

Owned & third-party distribution

Common traits in next-generation platforms

But… building a brand voice takes time…

Brands loved by consumers and advertisers

Global footprint of creators and sellers

Profitability and access to capital

Clear and differentiated voice in a cluttered world

Traditional publishers have every right to play… and to succeed.

But have to change to do so…

Months to Moments

2005: Evergreen

content optimized for search

2015: High-frequency, newsy content

optimized for social

TOTAL UNIQUE VISITORS (UVs)

APR-14 JUL-14 OCT-14 JAN-15 APR-15 JUL-15 0M

10M

20M

30M

40M

We started by rethinking U.S. Cosmo…

PLATFORM RELAUNCH

34M UVs

37M UVs

Moved aggressively across portfolio in the USA…

SITES PAGES

TEMPLATES TO

18 1.9M 80

3

Technology, product, content, advertising and distribution

are inseparable…

We need to be in control of the whole experience.

ONE

Technology Platform Product Team Set of Templates Set of Ad Products

Content belongs to Hearst… not one title or one country.

20% of digital content is shared across magazine sites

COSMO Philippines

COSMO U.S.

COSMO Australia

COSMO U.K.

1.6MM Pvs

60k Pvs

1.7MM Pvs

48k Pvs

A central news team drives responsiveness and efficiency

Created centrally;

published on

Country Living,

Esquire, Good

Housekeeping

and Woman’s Day

UNIQUES

6.4M

Great new tools for editors

In print we are clearly one brand

But in digital, our efforts have been fragmented

Global approach to product and user experience

COSMOU.S.

COSMOU.K.

COSMO IT

COSMONL

Prima U.K.

Sugar Scape

30 sites will migrate to the MediaOS platform in 2015 —

including Cosmo India, Cosmo Japan, Cosmo Taiwan and Digital Spy.

Global approach to content

Hearst Global Content Generator:

• More than 20 feeds for Cosmopolitan, ELLE, Harper’s BAZAAR, Esquire

• More than 255 stories available every day

• 24-hour newsroom

• Single-source coverage for major stories

Our sites Facebook YouTube

We distribute our content wherever we can create audiences and sell advertising

Apple Snapchat Instagram Pinterest WeChat Line Youku Odnoklassniki Renren

Cosmo has found

a huge new audience here

Daily publishing regimen inside

Snapchat platform

Limited to 11 media brands today

Top-tier performer with 3.2M views each day

UK & USA geo-managed access

Snapchat

Hearst Magazines International’s digital footprint is rapidly expanding

MONTHLY UVs

2011 2012 2013 2014 2015 0M

50M

150M

200M

250M

300M

350M

74M 100M

111M 130M

215M

329M U.S. UV International UV

Cosmo Netherlands shows what is possible!

NETHERLANDS COSMO UNIQUE USERS (MILLIONS), JAN 2014 – APRIL 2015

JAN-14 FEB-14 MAR-14 APR-14 MAY-14 JUN-14 JUL-14 AUG-14 SEP-14 OCT-14 NOV-14 DEC-14 JAN-15 FEB-15 MAR-15 APR-15

0.2 0.2 0.2 0.2 0.3

0.7 0.7

0.5 0.6 0.6

0.9 0.9

1.3

2.0

3.0 3.0

3M April 2015

Efficient product + sales culture = significant revenue & profit growth

The future is bright…

Perhaps the most exciting time ever to be in the content business…

…the rest is up to us!