2. CopyrightŠ2016TheNielsenCompany.
2NLSN 4Q and FY 2016 Results
SAFE HARBOR FOR FORWARD-LOOKING
STATEMENTS
The following discussion contains forward-looking statements, including those about Nielsenâs outlook and
prospects, that relate to 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 Nielsenâs current expectations as of February 9, 2017.
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://ir.nielsen.com, such as our most recent
10-K, 10-Q and 8-K reports. 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 2017. This
information may not be appropriate for other purposes.
4. CopyrightŠ2016TheNielsenCompany.
4NLSN 4Q and FY 2016 Results
FULL YEAR 2016 OVERVIEW
RESILIENT BUSINESS MODEL
⢠Financial highlights
- Revenue of $6.3 billionâŚup 4.1% constant currency
⢠Watch: up 6.3% constant currency
⢠Buy: up 2.3% constant currency
- Adjusted EBITDA of $1.9 billionâŚup 5.2% constant currency
- Diluted net income per share of $1.39 vs. $1.54 a year agoâŚup 35.0% ex-items
- Record free cash flow of $941 millionâŚup 16.5% vs. a year ago
⢠Executing on our balanced capital allocation framework
- Acquisitions remain integral, bolstering key parts of our strategy
- Returned $850 million back to shareholders in the form of dividends and buybacks
⢠Updating 2017 guidance
5. CopyrightŠ2016TheNielsenCompany.
5NLSN 4Q and FY 2016 Results
GRACENOTE ACQUISITION
40+ Years in
the Business
1,800
Employees
85 Territories
with Data
Coverage
3,000+ Customers
Globally
GRACENOTE DATA STATISTICS
12M TV Shows
& Movies
200M Tracks 4,500 Events,
Leagues & Teams
75M Cars 20M Smart TVs
1B Devices 250M TV
Households
35 Languages
6. CopyrightŠ2016TheNielsenCompany.
6NLSN 4Q and FY 2016 Results
⢠10% increase in Portable People Meter sample size (48 markets)
⢠Incorporating out-of-home viewing
⢠Set-top-box data to add stability and granularity to ratings
⢠âDigital in TV Ratingsâ: newly MRC accredited; to be included in C3/C7
⢠Total Content Ratings: limited commercial release on March 1st
⢠Digital Content Ratings: syndicated September 2016; continued adoption
⢠Subscription Video On-Demand: >20K episodes; improving data capture
⢠Digital Ad Ratings: growing client adoption and use for guarantees
⢠National TV: incorporating out-of-home viewing in April
⢠2017 Upfronts: Total Audience and its many components to play a key role
WATCH: STRATEGIC INITIATIVES
⢠Nielsen Marketing Cloud: increasing the value of data and analytics
Total Audience Measurement
Marketing Effectiveness: Convergence of Watch and Buy
Audio
Local
7. CopyrightŠ2016TheNielsenCompany.
7NLSN 4Q and FY 2016 Results
BUY: TWO-SPEED WORLD
⢠Linking measurement data with analytics, explanatory and predictive
⢠Addressing client needs of speed and efficiency
⢠Expanding to an additional 20-30 clients as the year unfolds; broader rollout in 2018
⢠Connected Partner Program growing, adding value to measurement data
Connected System: The Future of Buy
⢠Global footprint remains strategic advantage
⢠Balanced portfolio of global and local clients, broad-based growth
⢠Ongoing investments in measurement coverage and granularity
Emerging Markets: Compelling Story
Developed Markets: Challenging Growth Environment
⢠Measurement + everyday analytics remain mission critical for clients
⢠Renewal rates with large global clients 100%
⢠Clients reining in costs and reducing spend, our business not immune
⢠Covering 90% of US e-commerce sales of fast moving consumer goods
⢠Strategic agreement with JD.com in China
⢠Active in 11 markets, expanding to six more in 2017
E-Commerce: Building Out Coverage
17. CopyrightŠ2016TheNielsenCompany.
17NLSN 4Q and FY 2016 Results
CERTAIN NON-GAAP MEASURES
Overview of Non-GAAP Presentations
We use the non-GAAP financial measures discussed below to evaluate our results of operations, financial condition, liquidity and
indebtedness. 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 valuable supplemental
information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance
and is consistent with how management evaluates the companyâs operating performance and liquidity. In addition, these non-
GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all
investors have access to similar data the Company has determined that it is appropriate to make this data available to all
investors. 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, thereby
facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the
companyâs 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.
No adjustment has been made to foreign currency exchange transaction gains or losses in the calculation of constant currency
net income.
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.
18. CopyrightŠ2016TheNielsenCompany.
18NLSN 4Q and FY 2016 Results
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, stock-based compensation expense and other non-
operating items from our consolidated statements of operations as well as certain other items that arise outside the ordinary
course of our continuing operations. 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.
Free Cash Flow
We define free cash flow as net cash provided by operating activities, plus contributions to the Nielsen Foundation, less capital
expenditures, net. We believe providing free cash flow information provides valuable supplemental liquidity information
regarding the cash flow that may be available for discretionary use by us in areas such as the distributions of dividends,
repurchase of common stock, voluntary repayment of debt obligations or to fund our strategic initiatives, including acquisitions,
if any. However, free cash flow does not represent residual cash flows entirely available for discretionary purposes; for example,
the repayment of principal amounts borrowed is not deducted from free cash flow. Key limitations of the free cash flow measure
include the assumptions that we will be able to refinance our existing debt when it matures and meet other cash flow
obligations from financing activities, such as principal payments on debt. Free cash flow is not a presentation made in
accordance with GAAP.
19. CopyrightŠ2016TheNielsenCompany.
19NLSN 4Q and FY 2016 Results
ADJUSTED EBITDA RECONCILIATION
($ in millions)
Quarter ended
December 31,
Year ended
December 31,
2016 2015 2016 2015
Net income $ 159 $ 251 $ 502 $ 570
Interest expense, net 85 79 329 307
Provision for income taxes 101 177 309 383
Depreciation and amortization 153 142 603 574
EBITDA 498 649 1,743 1,834
Equity in net loss of affiliates - 2 - 3
Other non-operating income, net (4) (199) 3 (170)
Restructuring charges 32 8 105 51
Stock-based compensation expense 14 9 51 48
Other items(a) 8 62 36 92
Adjusted EBITDA $ 548 $ 531 $ 1,938 $ 1,858
(a) For the three and twelve months ended December 31, 2016 and 2015, other items primarily consists of business optimization
costs.
20. CopyrightŠ2016TheNielsenCompany.
20NLSN 4Q and FY 2016 Results
($ in millions)
ADJUSTED EBITDA RECONCILIATION
Operating
Income
Restructuring
Charges
Depreciation
and
Amortization
Stock-Based
Compensation
Expense
Other
Items(1)
Adjusted
EBITDA
Buy $115 $19 $54 $4 $1 $193
Watch $251 $11 $98 $3 - $363
Corporate $(25) $2 $1 $7 $7 $(8)
Total $341 $32 $153 $14 $8 $548
QUARTER ENDED DECEMBER 31, 2016
QUARTER ENDED DECEMBER 31, 2015
Operating
Income
Restructuring
Charges
Depreciation
and
Amortization
Stock-Based
Compensation
Expense
Other
Items(1)
Adjusted
EBITDA
Buy $138 $4 $50 $2 $1 $195
Watch $246 $2 $91 $3 $1 $343
Corporate $(74) $2 $1 $4 $60 $(7)
Total $310 $8 $142 $9 $62 $531
(1)Other items primarily consists of business optimization costs.
21. CopyrightŠ2016TheNielsenCompany.
21NLSN 4Q and FY 2016 Results
($ in millions)
ADJUSTED EBITDA RECONCILIATION
Operating
Income
Restructuring
Charges
Depreciation
and
Amortization
Stock-Based
Compensation
Expense
Other
Items(1)
Adjusted
EBITDA
Buy $331 $61 $212 $16 $3 $623
Watch $935 $18 $387 $10 $2 $1,352
Corporate $(123) $26 $4 $25 $31 $(37)
Total $1,143 $105 $603 $51 $36 $1,938
YEAR ENDED DECEMBER 31, 2016
YEAR ENDED DECEMBER 31, 2015
Operating
Income
Restructuring
Charges
Depreciation
and
Amortization
Stock-Based
Compensation
Expense
Other
Items(1)
Adjusted
EBITDA
Buy $369 $32 $207 $15 $1 $624
Watch $880 $14 $363 $8 $4 $1,269
Corporate $(156) $5 $4 $25 $87 $(35)
Total $1,093 $51 $574 $48 $92 $1,858
(1)Other items primarily consists of business optimization costs.
22. CopyrightŠ2016TheNielsenCompany.
22NLSN 4Q and FY 2016 Results
($ in millions)
ADJUSTED EBITDA RECONCILIATION
2016
Reported
2015
Reported % V Reported
2015 Constant
Currency
% V Constant
Currency
Buy $193 $195 (1.0%) $195 (1.0%)
Watch $363 $343 5.8% $340 6.8%
Corporate $(8) $(7) NM $(7) NM
Total $548 $531 3.2% $528 3.8%
QUARTER ENDED DECEMBER 31,
YEAR ENDED DECEMBER 31,
2016
Reported
2015
Reported % V Reported
2015 Constant
Currency
% V Constant
Currency
Buy $623 $624 (0.2%) $613 1.6%
Watch $1,352 $1,269 6.5% $1,264 7.0%
Corporate $(37) $(35) NM $(35) NM
Total $1,938 $1,858 4.3% $1,842 5.2%
24. CopyrightŠ2016TheNielsenCompany.
24NLSN 4Q and FY 2016 Results
2016
Reported
2015
Reported
% V
Reported
2015 Constant
Currency
% V Constant
Currency
Developed Markets $2,096 $2,110 (0.7%) $2,077 0.9%
Emerging Markets 1,063 1,044 1.8% 979 8.6%
Core Buy $3,159 $3,154 0.2% $3,056 3.4%
Corporate $163 $191 (14.7%) $191 (14.7%)
Buy $3,322 $3,345 (0.7%) $3,247 2.3%
Video and Text $1,978 $1,840 7.5% $1,827 8.3%
Audio 500 504 (0.8%) 503 (0.6%)
Marketing Effectiveness 287 251 14.3% 247 16.2%
Core Watch $2,765 $2,595 6.6% $2,577 7.3%
Corporate/Other Watch 222 232 (4.3%) 234 (5.1%)
Watch $2,987 $2,827 5.7% $2,811 6.3%
Total Core Buy and Watch $5,924 $5,749 3.0% $5,633 5.2%
Total $6,309 $6,172 2.2% $6,058 4.1%
REVENUE RECONCILIATION
YEAR ENDED DECEMBER 31,
($ in millions)
25. CopyrightŠ2016TheNielsenCompany.
25NLSN 4Q and FY 2016 Results
OTHER NON-OPERATING (LOSS)/INCOME IMPACT
ON DILUTED EARNINGS PER SHARE
(amounts in millions, except per share information)
All amounts are presented net of the estimated tax impact
Q4â15 FYâ15
Business acquisition/disposition and sale of investment $ 187 $ 187
Diluted per share impact $ 0.51 $ 0.51
GAAP weighted-average shares of common stock
outstanding, diluted
366.5 371.0
26. CopyrightŠ2016TheNielsenCompany.
26NLSN 4Q and FY 2016 Results
($ in millions)
2017 GUIDANCE NON-GAAP RECONCILIATIONS
NET DEBT LEVERAGE RATIO
Gross Debt ~$ 8,320
Cash ~$ 580
Net Debt ~$ 7,740
Adjusted EBITDA $2,030 - $2,050
Net Debt Leverage Ratio ~3.8x
FREE CASH FLOW
Net cash provided by operating activities ~$1,360
Less: Capital expenditures, net ~(460)
Free cash flow ~$900
ADJUSTED EBITDA RECONCILIATION
2017 Guidance
Range
Net income $500 - $525
Interest expense, net $365 - $375
Provision for income taxes $310 â $330
Depreciation and amortization $665 â $675
Restructuring charges $60 â $70
Stock-based compensation and other $100 - $105
Adjusted EBITDA $2,030 - $2,050
27. CopyrightŠ2016TheNielsenCompany.
27NLSN 4Q and FY 2016 Results
($ in millions)
2017 GUIDANCE NON-GAAP RECONCILIATIONS
2017
Guidance
Low
% V Constant
Currency
2017
Guidance
High
% V Constant
Currency
2016 Constant
Currency
Total Revenue $6,578 5.0% $6,640 6.0% $6,265
Total Revenue Core $6,268 6.5% $6,326 7.5% $5,885
Total Revenue Core
(ex. Gracenote)
$6,062 3.0% $6,120 4.0% $5,885
REVENUE RECONCILIATION
28. CopyrightŠ2016TheNielsenCompany.
28NLSN 4Q and FY 2016 Results
FREE CASH FLOW RECONCILIATION
($ in millions)
Quarter Ended
December 31,
(Unaudited)
Year Ended
December 31,
(Unaudited)
2016 2015 2016 2015
Net cash provided by operating activities $ 543 $ 401 $ 1,296 $ 1,209
Plus: Non-recurring contribution to the Nielsen
Foundation â â 36 â
Less: Capital expenditures, net (67) (95) (391) (401)
Free cash flow $ 476 $ 306 $ 941 $ 808
29. CopyrightŠ2016TheNielsenCompany.
29NLSN 4Q and FY 2016 Results
DEBT CAPITAL TABLE
(a) Adjusted EBITDA calculated based on last twelve months basis
(b) Reflects Net Debt (gross debt minus deferred financing fees and cash), divided by Adjusted EBITDA calculated on last twelve months basis
(c) Excludes capital leases
DEBT CAPITAL TABLE
12/31/16 12/31/15 Change
Loan Debt (secured) $4,059 $3,496 $563
4.50% Sr. Notes (10/1/20) 794 792 2
5.50% Sr. Notes (10/1/21) 618 617 1
5.00% Sr. Notes (4/15/22) 2,285 2,284 1
Capital lease/misc. debt 170 149 21
Total Debt $7,926 $7,338 $588
Less Cash 754 357 397
Net Debt $7,172 $6,981 $191
Adjusted EBITDA(a) $1,938 $1,858 80
Net Debt Leverage Ratio (b) 3.70x 3.76x (0.06)x
Weighted avg. interest rate (c) 4.04% 4.04% - bps
($ in millions)
30. CopyrightŠ2016TheNielsenCompany.
30NLSN 4Q and FY 2016 Results
SELECTED FINANCIAL METRICS & BALANCE SHEET ITEMS
FINANCIAL METRICS
4Q 16
Free Cash Flow $476
Capital Expenditures, net $67
D&A(c) $153
Net Book Interest $85
Cash Taxes $50
Cash Restructuring $20
Wtd. avg. diluted shares 359.7
BALANCE SHEET â 12/31/16
Gross Debt $7,926
Cash $754
Net Debt $7,172
Net Debt Leverage Ratio (a) 3.70x
CURRENT DEBT MATURITY PROFILE â 12/31/16 (b)
(a) Reflects net debt (gross debt minus deferred financing fees and cash), divided by Adjusted EBITDA calculated on last twelve months basis
(b) Excludes Capital Leases ($158M) and other debt ($12M)
(c) Includes $52 million of depreciation and amortization associated with tangible and intangible assets acquired in business combinations
($ in millions)
$138
$278
$1,397
$814
$1,021
$2,323
$1,785
2017 2018 2019 2020 2021 2022 2023
