“GAME-CHANGING”STRATEGY

HISTORY OF NEWSPAPER STRATEGY

• 1996 Clustering

• 1998 Increasing classified font size

• 1999 Doubling the recruitment rate

• 2001 Cutting expenses

• 2003 Allocating revenue & OP to “digital”

• 2007 Developing a separate online team

• 2008 Selling third party brands

• 2009 Reducing headcount in all areas

• 2010 Reducing web width (size of

newspaper)

• 2011 Consolidating functions

• 2012 Pricing Subscriptions

discriminately

• 2013 Separating print and broadcast

(publics)

• 2014 Charging subscribers for “special”

editions

2

SUMMARY OF “STRATEGIES”

• REACTING

• RETRENCHING

• REPURPOSING

• DRAMATICALLY INCREASING PRICES

• AGGRESSIVELY CUTTING EXPENSES

• USING EXISTING STAFF AND

CONCEPTS TO DEVELOP NEW

BUSINESS

• DESPERATION PHASE

3

NEWSPAPER CHALLENGES

4

August 11, 2016“Macy’s will close ANOTHER 100

stores”

2006 2015 Change

Advertising 5,370 1,611 (70%)

Circulation 1,307 1,060 (19%)

Other 502 213 (57%)

Revenue 7,179 2,885 (60%)

Operating Profit 1,627 169 (90%)

Margin 23% 6%

Gannett Newspapers Comparison (In Millions)

NEWSPAPER CHALLENGES

5

**New York Times August 18, 2016

THE “HIGHLY VISIBLE” FIXERS

RIP

• JOHN PAYTON RIP

• SAM ZELL RIP

• AARON KUSHNER RIP

NEWBIES

• SHELDON ADELSON

• JEFF BEZOS

• MICHAEL FERRO

6

THE “HIGHLY VISIBLE” INVESTOR

2012 LETTER TO SHAREHOLDERS

• ACQUIRED 28 DAILIES FOR $344

MILLION

• “NEWSPAPERS CONTINUE TO REIGN

SUPREME”

• “PAPERS…WILL REMAIN VIABLE FOR A

LONG TIME”

2016 USA TODAY

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TODAY’S NEWSPAPER STRATEGY

• DEVELOP A HIP NAME FOR THE DIGITAL BUSINESS

• ACQUIRE OTHER (DECLINING) NEWSPAPERS

• TRIPLE PLAY

• CUT THE NEWSROOM

• CUT THE NEWSHOLE

• INCREASE SUBSCRIPTION PRICING (DRAMATICALLY)

• GRAND SLAM (ADD ONE MORE…)

• REDUCE ALL SERVICES

8

STRATEGY IMPACTED OUTCOME

9

GCI UMG

Advertising (70%) (69%)

Circulation (19%) (18%)

Other (57%) 1207%

Revenue (60%) (38%)

Operating Profit (90%) (66%)

Margin (74%) (46%)

Declines 2006 to 2015

Gannett vs Utah Media Group

**GCI per annual reports for the newspaper segment, only.

UTAH MEDIA GROUP STRATEGY

• VISION

“EVERY MIND, EVERY TIME”

• MISSIONS

1. CONNECT WITH THE AUDIENCE VIA THE MOST EFFECTIVE

CHANNELS

2. DEVELOP NEW BUSINESSES

3. IMPROVE SALES EFFECTIVENESS

4. CONTINUOUSLY IMPROVE ALL OPERATIONS

10

UTAH MEDIA GROUP BUSINESS MIX

11

22%

16%

23%

40%

15%

**Magazines, Agency and Events compete outside the newspaper market.

PATH TO SUCCESS - EVENTS

12

• 1st idea – partner with Governor on an economic summit

• Reallocate budget to support a dedicated events team independent from the newspaper business

PATH TO SUCCESS - EVENTS

• RESULTS OF INITIAL “PARTNER” EVENT

• LAUNCH OF EVENT PRODUCTION BUSINESS

• WE PRODUCE MORE THAN 30 EVENTS, ANNUALLY

• LAUNCH OF EVENT SERVICES BUSINESS

• REGISTRATION SERVICES

• VENDOR/FLOOR MANAGEMENT SERVICES

• EVENT SALES MANAGEMENT SERVICES

• TICKETING SERVICES

13

PATH TO SUCCESS - TICKETING

CONSUMER EVENT TIED TO GAMING AND COMIC CONVENTIONS

• 2010 GEEX – GAMING AND ELECTRONICS EXPO

• THREE YEAR RUN PROFITABLE ON LAST TWO EVENTS

• VENDOR IDEA TO GO BIGGER

• TRANSITIONED INTO SUPPORT ROLE

• FREED US UP TO FOCUS ON KEY SERVICES

• PROFITS SOARED

14

PATH TO SUCCESS - TICKETING

15

• Two years in business.• 692 events ticketed• $34 million processed• Largest event $193K

• International ticketing business• Event fulfillment

services• Event security

services

UTAH MEDIA GROUP STRUCTURE

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General Mgr General Mgr General Mgr General Mgr SVP SVP SVP SVP VP Broker

Consumer Consumer Business Ticketing Agency CFO Newspaper Newspaper Newspaper Real Estate

Magazines Events Events & Magazines Operations Sales Digital Sales

New Business

PATH TO SUCCESS

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Agency

(R&D)

Launch New Businesses

Launch New Services

Shoot Bullets

Test Fulfillment

SUMMARY

• STRATEGY – One that changes the outcome in the long-term (game-changing)

• STRUCTURE – One that supports progressive independent businesses outside of the

newspaper

and supports ongoing development and growth of new businesses

• PEOPLE – Must find and retain talented people with a modern skill set and ability to multitask

NO newspaper people driving the new businesses

Must compensate business unit leaders well when successful—objective & tied to

results

• PERFORMANCE – Measure and report and adjust variables noted above, to meet vision

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• Must have the right leadership/ownership in order to get

the right STRATEGY and STRUCTURE

• Must have the right PEOPLE to properly execute and get

results/PERFORMANCE

SUMMARY (MORE SUMMARIZED)

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A THOUGHT

“GREATNESS IS NOT WHERE WE STAND, RATHER IN THE

DIRECTION WE ARE MOVING.

WE MUST SAIL, SOMETIMES WITH THE WIND AND

SOMETIMES AGAINST IT.

BUT SAIL WE MUST AND NOT DRIFT NOR LIE AT ANCHOR.”

*Oliver Wendell Holmes 20

ONE MORE THOUGHT

“FAR BETTER IT IS TO DARE MIGHTY THINGS, TO WIN

GLORIOUS TRIUMPHS, EVEN THOUGH CHECKERED WITH

FAILURE

THAN TO TAKE RANK WITH THOSE POOR SPIRITS WHO

NEITHER ENJOY MUCH NOR SUFFER MUCH

BECAUSE THEY LIVE IN THE GRAY TWILIGHT THAT KNOWS

NO VICTORY NOR DEFEAT.”* Theodore Roosevelt21

FINAL THOUGHT

22

What % of short putts go in the hole?