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Slide 1: Albany Allentown Atlanta Baltimore Boston Chicago Dallas Denver Fort Lauderdale Major Market Media Grand Rapids Greenwich Harrisburg Hartford Houston Indianapolis Los Angeles Miami Tribune Company 2000 Annual Report New Orleans New York Newport News Orlando Philadelphia Sacramento San Diego Seattle Stamford Washington
Slide 2: Tribune at a Glance Operations Television Broadcasting Tribune Broadcasting owns and operates 22 major-market television stations, including national superstation WGN, and reaches 80 percent of U.S. television households. It is the largest TV group not owned by a network. Broadcasting properties also include four radio stations, Tribune Entertainment and the Chicago Cubs baseball team. WPIX (WB11) New York KTLA (WB5) Los Angeles WGN (WB9) Chicago WPHL (WB17) Philadelphia Radio WLVI (WB56) Boston KDAF (WB33) Dallas WBDC (WB50) Washington, D.C. WATL (WB36) Atlanta KHWB (WB39) Houston KCPQ (FOX13) Seattle KTWB (WB22) Seattle WBZL (WB39) Miami KWGN (WB2) Denver KTXL (FOX40) Sacramento, Calif. KSWB (WB69) San Diego WXIN (FOX59) Indianapolis WTIC (FOX61) Hartford, Conn. WXMI (FOX17) Grand Rapids, Mich. WGNO (ABC26) New Orleans WNOL (WB38) New Orleans WPMT (FOX43) Harrisburg, Pa. WEWB (WB45) Albany, N.Y. Television Programming WGN-AM Chicago KEZW-AM Denver KOSI-FM Denver KKHK-FM Denver Tribune Entertainment Company, Los Angeles — develops and distributes first-run television programming for the Tribune station group and national syndication Baseball Chicago National League Ball Club Inc. (Chicago Cubs) Investments The WB Television Network (25% owned); TV Food Network (29%); The Golf Channel (9%); iBlast Networks (25%) Operations Daily Newspapers Entertainment Listings and Content Syndication Tribune Publishing operates market-leading newspapers dedicated to great journalism. It is the second-largest U.S. newspaper group in revenues and third in total circulation. The group also distributes entertainment listings and syndicated content, and operates two 24-hour cable news channels. Publishing Los Angeles Times Los Angeles Chicago Tribune Chicago Newsday Long Island, N.Y. The Baltimore Sun Baltimore South Florida Sun-Sentinel Fort Lauderdale, Fla. Orlando Sentinel Orlando, Fla. The Hartford Courant Hartford, Conn. The Morning Call Allentown, Pa. Daily Press Newport News, Va. The Advocate Stamford, Conn. Greenwich Time Greenwich, Conn. Hoy* New York *Spanish language Tribune Media Services—national and international print, online and on-air TV and movie information; comics, columnists and features; online and wire services; print and interactive ad networks Cable Programming CLTV News, Chicago; Central Florida News 13, Orlando (50% owned) National Advertising Tribune Media Net—oversees national advertising sales efforts for all Tribune newspapers and coordinates sales of multimedia ad packages Classified Advertising Tribune Classified Services—directs overall classified strategy for Tribune, integrating print, interactive and niche products Other Spanish-Language Newspapers La Opinión, Los Angeles (50% owned); ¡Exito!, Chicago (weekly) Operations Newspaper Sites Specialty Sites Investments Interactive Tribune Interactive operates leading news and information Web sites in 18 of the nation’s top 30 markets. The sites attract approximately 5 million unique visitors per month, placing Tribune among the top 20 online news and information networks in the country. latimes.com chicagotribune.com newsday.com sunspot.net sun-sentinel.com orlandosentinel.com ctnow.com mcall.com dailypress.com stamfordadvocate.com greenwichtime.com TV and Radio Sites blackvoices.com go2orlando.com metromix.com chicagosports.com calendarlive.com showtimeinteractive.com hrticket.com Classified Advertising Sites BrassRing Inc. (24% owned) CareerBuilder Inc. (46%) Classified Ventures (34%) See inside back cover for complete listing Recruitment—blackvoices.com, brassring.com,* careerbuilder.com,* siliconprairie.com Automotive—cars.com* Real estate—apartments.com,* newhomenetwork.com* General merchandise—recycler.com *affiliate/equity relationship; supported locally and nationally via sales and marketing
Slide 3: Competitive Advantages I Strategic Priorities I Broad distribution—our TV stations reach 38% of U.S. television households over the air, and 80% with the cable and satellite coverage of WGN superstation Major markets—we have TV stations in 10 of the nation’s top 12 markets Create a leading distribution network in the consolidating television industry by acquiring stations in the nation’s top 40 markets Continue track record of exceeding industry averages for revenue growth and margin expansion Expand local news programming to grow audience share and increase revenues Achieve operating efficiencies in two-station markets and capitalize on further opportunities for dual ownership Exploit cross-media opportunities in top three markets to better serve consumers and advertisers Enhance ad revenue stream by expanding cable coverage of WGN superstation Build out digital broadcast capacity and focus on maximizing the future revenue potential of our digital TV spectrum Support the growing WB Television Network, the major source of prime-time programming for our affiliated stations Increase Tribune-branded programming through Tribune Entertainment I I and in 16 of the top 30. Tribune is one of only four TV groups with VHF stations in New York, Los Angeles and Chicago (ABC, CBS and NBC are the others) I I I Buying power—our TV group’s size provides purchasing advantages in the syndicated programming marketplace I Local programming excellence —news, sports and special-event coverage attracts viewers and advertisers, and gives Tribune stations distinct identities in their markets I I WGN superstation—we operate one of America’s most-watched cable channels, reaching more than 51 million households outside of Chicago I I I I Competitive Advantages I Strategic Priorities I I Excellent markets—our newspapers are located in dynamic major markets, including New York, Los Angeles and Chicago Strong local franchises—our newspapers are the leading sources of news, Be the leading provider of local information in the communities where we do business Position Tribune’s newspaper brands as multimedia information franchises by building cross-media presence Capture the majority of local classified advertising dollars, in print and online Increase Tribune’s share of the fast-growing national advertising category Leverage Tribune’s mass-media assets to accelerate growth and build cross-media sales Build readership and circulation through innovative marketing and product enhancements that respond to customer needs Sustain operating excellence, including high-quality production and cost efficiency, with equipment and technology upgrades I information and classified advertising, in print and online, in their local markets I I I I I Award-winning journalism —Tribune newspapers have won a combined 90 Pulitzer Prizes, and each is a frequent recipient of national and regional awards for investigative reporting, column and feature writing, sports coverage, photography and other categories I Electronic media alliances—through broadcast TV, radio, cable and the Internet, our newspapers extend their audience reach and brands, positioning themselves as complete, multimedia information sources I Competitive Advantages I Strategic Priorities I Established brands —our newspaper and broadcast Web sites build on the reputations of Tribune’s well-known media brands, which are trusted sources of local news and information I Be the leading provider of online news, information and classifieds in our markets, leveraging Tribune’s extensive content resources and brand equity Focus growth strategy on newspaper Web sites, which attract the most users and hold the greatest revenue potential Build the nation’s No.1 network of major-market Web sites Develop multiple revenue streams, including advertising and sponsorships, that lead our Internet activities to long-term profitability Create and strengthen content partnerships with providers of emerging wireless and broadband platforms to extend our reach Invest in leading-edge Internet technology, ensuring that our Web sites have the features and speed that consumers and advertisers value Scale and scope —we operate a network of leading news and information sites in 18 of the top 30 markets; this strong national reach and access to major markets is important to advertisers Cross-promotion ability —Tribune’s TV and publishing assets enable cost-effective I I I I marketing of our dot-com brands to local and national audiences I Content creation —our Web sites draw on Tribune’s vast media network to provide more depth, including multimedia news and features I I Online experience —Tribune was an early leader in adopting interactive technology. We know how to build compelling Web sites that provide value for consumers and advertisers I
Slide 4: Tribune Company and Subsidiaries Financial Highlights For the Year (in thousands, except per share data) 2000 $ 4,910,363 $ 1,033,011 1999 $ 2,882,284 $ $ 732,842 382,358 1,449,962 21,807 (3,060) $ 1,468,709 $ 1.41 5.49 .08 (.01) $ $ 5.56 .36 change + 70% + 41% + 6% Operating revenues Operating profit Net income Continuing operations before non-operating items Continuing operations including non-operating items Discontinued operations Cumulative effect of accounting change, net Total Diluted earnings per share Continuing operations before non-operating items Continuing operations including non-operating items Discontinued operations Cumulative effect of accounting change, net Total Common dividends per share Common stock price per share: high low close $ 403,519 310,401 (86,015) – – 79% * – 100% – 85% – 8% $ $ 224,386 1.30 .99 (.29) – – 82% * – 100% – 87% + 11% $ $ .70 .40 $ $ $ 55.69 27.88 42.25 $ $ $ 60.88 30.16 52.56 At Year End Total assets Total debt (excluding PHONES) Shareholders’ equity Common shares outstanding * Not meaningful Dec. 31, 2000 $14,676,212 $ 3,448,445 $ 5,885,916 299,518 Dec. 26, 1999 $ 8,740,047 $ 1,396,039 $ 3,458,617 237,792 change + 68% + 147% + 70% + 26% Operating Revenues (dollars in billions) 5.0 1250 Operating Profit (dollars in millions) 1500 EBITDA (dollars in millions) 4.0 1000 1250 1000 3.0 750 750 2.0 500 500 1.0 250 250 96 97 98 99 00 96 97 98 99 00 96 97 98 99 00
Slide 5: Tribune Company is a media industry leader with operations in major markets throughout the United States, including 18 of the top 30. Through television, radio, newspapers and the Internet, we reach more than 80 percent of U.S.households. Our multimedia growth strategy expands the audience for Tribune content, deepens news coverage and strengthens our local brands. It also helps us capture incremental advertising revenues, locally and nationally. In addition, we invest aggressively in technologies that are important to our future, such as digital television and innovative online services. Tribune’s annualized revenues are about $6 billion and we employ more than 22,000 people.
Slide 6: To our shareholders 2000 was an extraordinary year for Tribune, highlighted by our merger with The Times Mirror Company. Valued at $8.3 billion, it was the largest acquisition in newspaper industry history. More importantly, it created the only media company with television, newspaper and Internet operations in the top three U.S. markets — New York, Los Angeles and Chicago — and positions Tribune for accelerated growth. The benefits of the Times Mirror merger, completed last June, extend well beyond newspapers. We acquired the scale that is essential for success in today’s media environment, and the ability to serve advertisers and consumers in new ways that add value. That means more opportunities to grow revenue across Tribune’s entire network of mass-media businesses. One key opportunity is to increase our share of national advertising. Tribune Media Net, our new nationwide sales organization, positions Tribune as a one-stop solution for advertisers who need to reach a mass audience quickly and efficiently, particularly in the top three markets. Sales of cross-media ad programs—featuring any combination of newspapers, television and the Internet—are gaining momentum. Our combined television and newspaper reach is a major selling point: 75 percent of adults in Chicago, 62 percent in Los Angeles and 42 percent in New York. In addition, Tribune Media Net funnels national ad dollars to our mid-tier markets like Baltimore, Fort Lauderdale, Hartford and Orlando, producing incremental newspaper revenue that was not attainable prior to the merger. More options for Tribune advertisers are just the beginning. Our local editorial and newsgathering resources are extraordinary, and we know how to maximize their value. We’ve proven in Chicago that cross-promotion and sharing content across media strengthens our brands and gives our audiences a deeper level of news and information. It produces operating efficiencies as well. As you’ll see throughout this report, we’re now extending our unique multimedia growth strategy to other markets, including New York and Los Angeles. The integration of Times Mirror has progressed faster than expected. Merger-related synergies should generate about $130 million and employee owners 2
Slide 7: of incremental cash flow in 2001. In fact, a large portion of that amount has already been realized. Duplicate corporate overhead expenses were eliminated ahead of schedule, and at the business unit level, we’ve taken steps to increase operating margins at our newly acquired newspapers. In particular, our new management team at the Los Angeles Times has made many positive changes. After the merger we divested non-core businesses, focusing Tribune resources exclusively on broadcasting, publishing and interactive. We received excellent value for our education group and several companies acquired in the Times Mirror transaction—about $2 billion we delivered a positive total return of 14.5 percent while, for the same period, the S&P 500 Index declined 4.5 percent. Clearly, our stock price in 2000 did not reflect the progress made throughout the company. The television group outperformed the industry, leading Tribune Broadcasting to its ninth consecutive year of record growth. Once again, combining great markets with excellent programming proved a winning formula. We continue to benefit from our affiliation with the popular WB Network, smart programming buys in the syndication market and our stations’ growing local news franchises. For Tribune Publishing, margin John W. Madigan Chairman, President and Chief Executive Officer Dennis J. FitzSimons Executive Vice President in cash after taxes. This helped offset the cost of the merger, and we applied the funds to reduce debt and repurchase Tribune stock. Solid results Financially, expansion is a major focus as we strive to operate the industry’s most profitable newspapers. Installations of new technology are boosting productivity, and we’re reducing expenses. For example, several newspapers have converted to a narrower page size, cutting newsprint costs significantly. Readers find the new size more convenient, too. The Chicago Tribune, South Florida Sun-Sentinel and The Hartford Courant will adopt the new format in 2001. Our interactive operations continue to grow rapidly, and we expect the Internet to play a prominent role in Tribune’s future. It complements and extends our broadcasting and publishing businesses. In 2000, we tightened our growth strategy to focus on the Tribune newspaper sites, 2000 was another strong year for Tribune. Although reported earnings per share were lower due to dilution from the Times Mirror merger, cash earnings—defined as income from continuing operations, excluding non-operating items, plus amortization expense—rose 12 percent on a per share basis. In what was a difficult stock market overall, total return on Tribune common shares was minus 22.5 percent in 2000. We were encouraged, however, by our stock’s performance following the Times Mirror merger announcement on March 13. From that day through December 31, 3
Slide 8: which attract the most users and hold the greatest revenue potential. We also scaled interactive activities to better match online revenue projections. These steps position Tribune Interactive to be profitable by the second half of 2002. Board of Directors We welcomed Enrique Hernandez, Jr. to the As always, the financial measure known as Shareholder Value Added, or SVA, will help guide our decision-making on acquisitions, capital expenditures and operating budgets. We believe high-quality media properties will continue to grow in value, adding to our confidence in the company’s future. In today’s fragmented media environment, advertisers need television and newspapers more than ever to reach a broad consumer audience—especially in the major markets, where Tribune is concentrated. We have the right businesses in the right places. Tribune’s media brands and financial strength are a powerful combination. Yet our greatest asset of all is people. We have an abundance of motivated, innovative thinkers at all levels of the organization, most of whom are Tribune shareholders. This further distinguishes Tribune and contributes to our industry leadership. Even off the job, our employees are exceptional, volunteering their time and talent in the communities where we do business. This is a time of great optimism at Tribune. Never in our history have we had so many opportunities to grow, and so many competitive advantages. The best is yet to come as we build the multimedia company of the future. Sincerely, Tribune board earlier this month. Rick is chairman, president and CEO of Inter-Con Security Systems in Los Angeles and also owns interests in the television industry. He fills the vacancy created by Donald Rumsfeld, who last month joined the Bush administration as Secretary of Defense. Don joined the Tribune board in 1992 and we wish him well as he once again serves our nation in a very important role. Three of our long-time directors, Diego Hernandez, Robert La Blanc and Kristie Miller, will retire from board service in May. These directors have collectively served Tribune shareholders for more than 45 years and we appreciate their dedication and commitment. Thomas Unterman, who joined our board last June following the Times Mirror merger, will not be standing for reelection. We thank Tom for his contributions during the transition and wish him well. Outlook Even in the face of slower ad trends, Tribune is posi- How we create value Develop premier branded content Build value across multiple media Apply technology imaginatively Encourage creativity in a diverse workplace Use financial resources aggressively to create shareholder value tioned for above-average growth. We are only beginning to capture the full benefits of the merger, including significant economies of scale. In addition, Tribune Media Net has a national sales team in place to serve a new class of advertisers and increase our business with existing ones. We expect to make more acquisitions, especially in television, where we are actively searching for opportunities in the nation’s top 40 markets. John W. Madigan Chairman, President and Chief Executive Officer February 23, 2001 4
Slide 9: Major Markets The audience for Tribune content swelled in 2000 as we continued our expansion in the nation’s largest, most lucrative markets. Our major-market orientation, combined with an aggressive, multimedia growth strategy, sets Tribune apart from both local and national competitors. In four of the five most-populated states, Tribune is the preeminent local media company. We are the only one with television, newspaper and Internet operations in New York, Los Angeles and Chicago, and we are the leading newspaper publisher in Florida. In these markets and throughout our national network, Tribune’s broadcasting, publishing and interactive businesses work together. Their cooperation — in newsgathering, content creation, promotion, sales and other areas — strengthens our local brands, deepens coverage and reduces costs. Our joint efforts create new revenue streams, too. Tribune Media Net, established in 2000, is pumping up our share of the national advertising segment by offering targeted mass-media options that marketers have never seen before. Response to our customized, cross-market and cross-media ad programs has been very positive, and we’ve only begun to exploit this unique Tribune capability. In 2001, we’ll create even more value for national advertisers, helping them succeed in the top three markets and beyond. Multi Media
Slide 10: Albany Allentown Atlanta Baltimore Boston Chicago Dallas Denver Fort Lauderdale Grand Rapids Greenwich Harrisburg Hartford Houston Indianapolis Los Angeles Miami New Orleans New York Newport News Orlando New Sacramento San Diego Seattle Stamford Washington Philadelphia
Slide 11: York From Times Square to the eastern tip of Long Island, Tribune has the greater New York market covered. WPIX-TV extended its local news franchise in 2000, introducing the WB11 Morning News. The two-hour newscast has pulled in new viewers and advertisers alike, and, like the station’s flagship 10 p.m. news, benefits from a growing relationship with Newsday. I WPIX, Newsday and their corresponding Web sites combined resources on three statewide polls prior to the November election. More co-branded, content-sharing opportunities will be pursued in 2001, as will bundled advertising programs that bring together all Tribune media assets in the region. I Newsday and newsday.com are powerful brands on their own. At 54 percent daily and 63 percent on Sundays, Newsday has the highest market penetration of any major newspaper in the country. In addition, its primary circulation territory includes Nassau and Suffolk counties on Long Island — high-income areas that most advertisers need to reach. I Newsday also publishes Hoy, a fast-growing Spanish-language daily. Just north of the Big Apple, The Advocate (Stamford) and Greenwich Time serve Connecticut’s affluent Fairfield County. 7
Slide 12: Albany Allentown Atlanta Baltimore Boston Chicago Dallas Denver Fort Lauderdale Grand Rapids Greenwich Harrisburg Hartford Houston Indianapolis Los Angeles Miami New Orleans New York Newport News Orlando Philadelphia Sacramento San Diego Seattle Stamford Washington Los An
Slide 13: geles The Los Angeles Times and KTLA-TV pack a dynamic one-two punch in the nation’s second-largest market. Together, they reach approximately 62 percent of adults in the region every week. The Times and KTLA teamed up in 2000 to deliver enhanced coverage of the Democratic National Convention in Los Angeles and breaking news stories such as the Concorde crash in Paris. Content on latimes.com and ktla.com also reflect Tribune’s cooperative efforts in Southern California. I The Times earned its 24th Pulitzer Prize in 2000. New weekly sections, “Tech Times” and “Workplace,” and increasing coverage of L.A.’s Latino community, show the newspaper’s ability to address reader needs and grow with the market. “Sneaks,” a popular film-preview section published quarterly, was expanded to the Chicago Tribune and Newsday, generating incremental revenue from national advertising. I Partnering with the Times deepens KTLA’s established role as a local news and information leader. The station airs 24.5 hours of local news programming per week, including the innovative KTLA Morning News — No. 1 with adult viewers ages 25 to 54 — and the award-winning News @ Ten. 9
Slide 14: Albany Allentown Atlanta Baltimore Boston Chicago Dallas Denver Fort Lauderdale Grand Rapids Greenwich Harrisburg Hartford Houston Indianapolis Los Angeles Miami Chic New York Newport News Orlando Philadelphia Sacramento San Diego Seattle Stamford Washington New Orleans
Slide 15: ago The multimedia model we’re applying in New York and Los Angeles, as well as Hartford, was developed in Chicago. It is a proven success on three levels: content sharing, cross-brand promotion and cross-media ad sales. I Our local businesses draw from each other — a daily process that enriches the news and information appearing on-air, in print and online. WGN-TV, WGN Radio and CLTV, for example, often use Chicago Tribune reporters and columnists to augment their own take on a story. Viewers get more insight; the newspaper gets more exposure. All of our Chicago outlets promote one another, helping grow Tribune’s regional audience. I For advertisers, more channels mean more potential exposure. Our media in Chicago deliver 75 percent of adults every week. We offer convenience, too — a single point of contact for multimedia packages tailored to advertisers’ specific needs. I Even in our home market we see plenty of room to grow, and we’re investing in our local products aggressively. For example, a major expansion under way at Freedom Center, the Chicago Tribune’s printing facility, will increase zoning and inserting capacity. Readers will see more community-specific news and information, and advertisers will have more options for targeting their messages. At WGN-TV, a new state-of-the-art digital newsroom allows producers to review video edited for broadcast on their desktop computers. The technology gives the editors many more options in the use of special effects and provides a framework for greater content sharing with CLTV. 11
Slide 16: Albany Allentown Atlanta Baltimore Boston Chicago Dallas Denver Fort Lauderdale Grand Rapids Greenwich Harrisburg Hartford Houston Indianapolis Los Angeles Miami New Orleans New York Newport News Orlando Philadelphia Sacramento San Diego Seattle Stamford Washington Flo
Slide 17: ida The vibrant Florida market is a great place to sell newspapers, and we should know. The Orlando Sentinel and South Florida Sun-Sentinel are news and information leaders in the third fastest-growing state, and each employs aggressive multimedia growth strategies. I In 2000, the Orlando Sentinel captured a Pulitzer Prize, increased circulation and launched a cover-to-cover redesign. Central Florida News 13, our partnership with Time Warner, extends the Sentinel brand and offers the region’s only 24-hour local news on television. In print, online and on the air, Orlando Sentinel Communications reaches 88 percent of Central Florida adults. I Likewise, the Sun-Sentinel connects with more adults than any major daily newspaper in the Broward/South Palm Beach market — three times more than The Miami Herald. It’s also a hands-on content partner with several South Florida television and radio stations. I Our Florida newspapers, Web sites, WBZL-TV (Miami) and News 13 played a pivotal reporting role, nationally and locally, in the presidential election. Editorial staff shared their local knowledge with the full range of Tribune media outlets as the ballot controversy unfolded, deepening our companywide coverage in every medium. Sun-Sentinel editors and reporters also provided insights for CNN, C-SPAN, the BBC, MSNBC, National Public Radio and CBS Radio. 13
Slide 18: TV stations in10 of the top Broadcasting Tribune is the country’s fourth-largest broadcaster, operating the largest television group not owned by a network. With stations in 10 of the top 12 markets, and 16 of the top 30, we reach 80 percent of U.S. television households, including the cable and satellite coverage of superstation WGN. Effective programming strategies combined with our major-market presence continue to produce strong financial results. Tribune Broadcasting — including the television group, four radio stations, Tribune Entertainment and the Chicago Cubs — achieved record operating profit and operating revenues in 2000, up 19 percent and 13 percent, respectively. Television operating cash flow margins improved a full point in 2000, to 42 percent, and have more than doubled over the past 10 years. We are a leading consolidator in the television industry, focusing on acquisition opportunities in the nation’s top 40 markets. Expanding our national footprint gives us greater scale to stay competitive and increase cash flow. Besides entering new markets, we look to grow in our existing markets by acquiring second stations as we have done in Seattle and New Orleans. In addition to scale, building viewership is fundamental to our television success. Tribune’s main source of prime-time programming is The WB Television Network, in which we hold a 25 percent equity stake. Fifteen of our 22 stations are WB affiliates and together they comprise the majormarket backbone of the network. We also operate six strong Fox affiliates. 14
Slide 19: NATIONAL REACH Tribune’s 22 stations reach 38 percent of U.S. television households.* Under FCC rules, which discount coverage for UHF stations, we’re well under the regulatory cap of 35 percent and have plenty of room to grow. Station WPIX KTLA WGN WPHL WLVI KDAF WBDC WATL KHWB KCPQ KTWB WBZL KWGN KTXL KSWB WXIN WTIC WXMI WGNO WNOL WPMT WEWB Market New York Los Angeles Chicago Philadelphia Boston Dallas Washington, D.C. Atlanta Houston Seattle Seattle Miami Denver Sacramento, Calif. San Diego Indianapolis Hartford, Conn. Grand Rapids, Mich. New Orleans New Orleans Harrisburg, Pa. Albany, N.Y. Market Size 1 2 3 4 6 7 8 10 11 12 12 16 18 19 25 26 27 38 42 42 46 56 **Founded by Tribune Affiliation WB11 WB5 WB9 WB17 WB56 WB33 WB50 WB36 WB39 FOX13 WB22 WB39 WB2 FOX40 WB69 FOX59 FOX61 FOX17 ABC26 WB38 FOX43 WB45 Year Acquired 1948** 1985 1948** 1992 1994 1997 1999 2000 1996 1999 1998 1997 1966 1997 1996 1997 1997 1998 1983 2000 1997 1999 12 U.S. markets The WB’s popularity with teen and young-adult viewers was never more apparent than in 2000. In the critical November “sweeps” period, The WB scored the highest year-to-year ratings increase of any television network in the demographic segments most coveted by advertisers. Overall ratings jumped 28 percent among adults ages 18-34, and 19 percent for adults 18-49. 7th Heaven, The WB’s signature series, had its best-ever sweeps average with gains of more than 40 percent in both the 18-34 and 18-49 adult groups. Angel, Dawson’s Creek and Felicity also achieved impressive audience growth. Gilmore Girls, a new series, performed even better than expected. Programming during the “fringe” periods that surround prime time also plays a key role in our success. The size of our station group gives us a buying advantage in the syndication market and investments in off-network comedy series have produced excellent returns. Friends, for example, continues to yield solid ratings and revenue growth for our stations, attracting viewers whom advertisers will pay a premium to reach. We believe Everybody Loves Raymond — one of the top-rated shows on CBS and launching on most Tribune stations this fall — will generate similar benefits. The Tribune group will add another proven winner, Will & Grace, in 2002. Gene Roddenberry’s Andromeda, introduced by Tribune Entertainment last fall, looks like a winner, too. It is the No. 1-rated action drama in first-run syndication and demonstrates the value of Tribune Entertainment on multiple levels. With Andromeda, Tribune television stations received a highly rated, first-run show at no cash cost. Tribune Entertainment, in turn, benefited from having one of the nation’s strongest station groups as a launch platform. A further plus is the extra revenue potential for programs that reach four seasons of production via the sale of re-run rights. In 2000, Tribune Entertainment sold rights for 88 episodes of Gene Roddenberry’s Earth: Final Conflict to cable’s Sci-Fi Channel. In February 2001, Tribune Entertainment announced the formation of Tribune Studios. The project includes a complete renovation of the historic 15 *Nielsen Media Research, 2000 HH estimates 10-acre KTLA-TV studio lot and answers the exploding demand for digital production facilities from the Hollywood creative community. Tribune television stations enjoy close ties with their communities. Local news and sports programming strengthens those ties and distinguishes our channels from a sea of basic cable networks. Tribune stations broadcast more than 200 hours of local news every week. The programming appeals to viewers and advertisers alike, supporting our goal to increase local market shares. We’ve been especially aggressive in the morning news category. In 2000, morning shows debuted in New York, Boston, Seattle and Denver. Like our popular morning newscasts in Los Angeles and Chicago, the new shows feature an entertaining blend of news, information and personalities. The overriding goal is to give viewers something they can’t get anywhere else, and our morning shows frequently outperform the national broadcasts by traditional networks. We continue to expand our digital broadcast capacity in anticipation of growing consumer demand for high-definition television. Eight of our stations now deliver a digital signal. In addition, Tribune Broadcasting is a leading investor in iBlast Networks, a new company that uses the digital-television spectrum to distribute broadband content and services to consumers. iBlast has aggregated part of the spectrum from local television stations in 246 markets covering 93 percent of the United States. The service represents a potential new revenue stream for Tribune television stations.
Slide 20: In 2000, Tribune strengthened its position as one of Publishing America’s premier newspaper publishers. The merger with Times Mirror tripled our circulation and marketing reach and doubled publishing revenues to more than $4 billion annually. Tribune is now the nation’s secondlargest newspaper publisher measured by revenue and operating cash flow, and third in total circulation. 11 market-leading newspapers The addition of the Los Angeles Times, Newsday (New York), The Baltimore Sun, The Hartford Courant and other former Times Mirror newspapers significantly enhances Tribune’s network of major-market media assets. The Times, Chicago Tribune and Newsday are each among the nation’s 10 largest metropolitan daily newspapers, giving us the scale and scope to attract national advertising. In fact, our Los Angeles, Chicago and New York papers have a combined daily circulation of 2.2 million — a reach unmatched by The Wall Street Journal, USA Today or The New York Times. For national advertisers, our circulation on a market-bymarket basis is even more compelling. In 2000, we established Tribune Media Net to execute an aggressive growth strategy in the national advertising segment. The group’s goal is to boost national ad revenue for all Tribune newspapers and leverage Tribune’s unique multimedia position in the nation’s top three markets. Our message to national ad buyers is simple: Tribune can help you target 16
Slide 21: LEADING BRANDS Tribune’s daily newspapers are known for award-winning journalism, multimedia reporting and technological innovation. They are read by more than 9 million people on weekdays and 12 million on Sundays. Newspaper Los Angeles Times Chicago Tribune Newsday The Baltimore Sun Orlando Sentinel South Florida Sun-Sentinel The Hartford Courant The Morning Call Daily Press The Advocate Greenwich Time *ABC report for six-months ended 9/24/00 Circulation* Daily Sunday 1,033,399 620,600** 576,345 315,306 252,057 238,096 202,509 127,175 93,174 28,499 12,384 1,379,564 1,007,236 674,662 471,387 373,901 351,189 296,713 170,744 114,376 35,654 13,810 Primary Market(s) Southern California Greater Chicagoland Long Island/Queens, N.Y. Central Maryland Central Florida South Florida Greater Hartford/Connecticut Allentown, Pa./Lehigh Valley Virginia Peninsula Stamford, Conn./Fairfield County Greenwich, Conn./Fairfield County ** Wed.-Fri. average for the period was 661,699. and 90 Pulitzers a broad audience in the most critical markets, quickly and cost-effectively. We can do it with newspapers alone, or with a combination of newspapers, television and the Internet. Tribune Media Net generates revenue that is mostly incremental — sales that were not possible prior to the merger. Special sections that share content and run in multiple markets are a key revenue driver. The sections offer national advertisers a common editorial platform and high readership — a great combination for those targeting a specialized audience. Tribune published three cross-market special sections in 2000: two explored technology themes and one previewed the holiday movie scene. Capturing the majority of classified advertising revenues in our local markets remains a top priority. With the Internet playing a greater role in the classified marketplace, our print and online strategies must be integrated, and our product development efforts accelerated. In 2000, we created Tribune Classified Services to carry out both objectives. 17 The new organization ensures that sales and marketing resources are maximized as we grow this vital part of our business. Classified advertising — primarily in the jobs, cars and real estate areas — accounts for about 30 percent of Tribune Publishing’s revenue. More and more advertisers are realizing the benefits of our “full-service” classified model, where integrated solutions are offered using a combination of the newspaper, the Web and niche publications. Initiatives in the Chicago market illustrate this approach. In early 2001, the Chicago Tribune upgraded its classified sections, adding more information for readers and making the pages easier to use. A new section, “Working,” offers tips for job searchers and points to the CareerBuilder area on chicagotribune.com. Likewise, the newspaper’s twice weekly “Cars” section shares content with the cars.com area online. Specialty publications like Auto Finder, Job Finder and New Homes Guide round out our Chicago classified line, making the Tribune a true one-stop shop for local advertisers. Market-leading classifieds are only part of what readers find in Tribune newspapers. They also get award-winning journalism packaged with the most in-depth news and information available. Engaging content is our daily mission, and we’re constantly changing to better inform and entertain readers. Our bureau in Havana, Cuba, opened in January 2001, exemplifies how we strive to deepen news coverage and address important reader interests. The bureau will enhance content in all Tribune newspapers and benefit Tribune’s broadcast units as well. The Times Mirror merger added two Spanish-language newspapers to our publishing mix: La Opinión in Los Angeles and Hoy in New York. La Opinión, 50-percent-owned by Tribune, is the nation’s largest Spanishlanguage daily, reaching 600,000 readers every day. Hoy was launched by Newsday in 1998 and already has a paid distribution of 54,000. Together with ¡Exito!, the Chicago Tribune’s free weekly, Tribune Publishing reaches Hispanic readers in the nation’s top three markets. We are exploring opportunities for national advertising sales and content sharing between all three publications in this high-growth market.
Slide 22: Content-rich Web Interactive Tribune Interactive operates leading news and information Web sites in Tribune’s 23 local media markets, along with other branded sites targeting specific communities of interest. In 2000, we accelerated Tribune’s growth online, advancing our goal to develop profitable businesses in the new medium. The Times Mirror merger gave a boost to our online efforts, elevating Tribune to the top tier of local news, information and classified advertising providers on the Web. Our sites attract approximately 5 million unique visitors per month, placing us among the top 20 online news and information networks in the country. The content and promotion resources of Tribune newspapers and television stations give Tribune Interactive a unique ability to deliver large online audiences in the nation’s top three markets. Likewise, Tribune’s strong local brands throughout the country and long-term relationships with consumers and advertisers provide a distinct competitive advantage as we build our interactive businesses. Like most other Internet companies, Tribune Interactive experienced growing pains in 2000. We responded aggressively, taking steps to scale our online operations to revenue projections. Cost reductions will save more than $15 million annually, which includes operating efficiencies from a common online publishing platform being introduced in 2001. The technology facilitates content sharing and national advertising sales while allowing each of our sites to retain a unique design. 18
Slide 23: sites serving 23 U.S. markets Tribune Interactive pro forma revenues were $48 million in 2000, up 41 percent from 1999. (Pro forma assumes the Times Mirror merger occurred at the beginning of 1999.) Strong revenue growth is projected for 2001, and the group is targeting profitability by the second half of 2002. We are keenly focused on applying our interactive resources to areas that offer the greatest potential for hard dollar returns. In particular, that means exploiting opportunities to speed revenue growth at our flagship newspaper Web sites. Our sites feature breaking news throughout the day and in-depth information not available elsewhere. In most of our newspaper markets we also operate the leading online marketplaces for jobs, cars and homes. Classified advertising is our highest priority, accounting for nearly 70 percent of online revenues. We established Tribune Classified Services in 2000 to further integrate our print and interactive classified operations and to capture ad revenues moving from print to the Internet. In addition, we reconfigured our newspaper Web sites to better showcase classified content. We continue to utilize strategic partnerships with other newspaper publishers to build nationally-branded sites like cars.com — sites that complement our own local sales efforts. In 2000, we greatly improved our position in the jobs category by partnering with Knight Ridder to acquire CareerBuilder, a national leader in online recruiting. Tribune newspaper sites now offer the full range of CareerBuilder services. Targeting new audience segments with sites that “build community” helps increase Tribune’s reach, locally and nationally, and helps develop new revenue streams. In 2000, for example, we launched ChicagoSports.com, a site that taps Tribune’s Chicago-based print, broadcast and interactive resources to give local fans the richest possible online experience. Our most successful online community is BlackVoices.com, which recently entered a major strategic marketing alliance with General Motors. The wide-ranging agreement demonstrates our belief in the power of the Internet as a medium for creative marketing solutions that go well beyond standard banner-type advertisements. 19 POPULAR SITES IN MAJOR MARKETS Tribune Interactive operates a national network of Web sites featuring in-depth news and information. The group’s high-traffic newspaper sites are the foundation for current and future online success. Newspaper Sites latimes.com chicagotribune.com newsday.com sunspot.net sun-sentinel.com orlandosentinel.com ctnow.com mcall.com dailypress.com stamfordadvocate.com greenwichtime.com Entertainment and Specialty Sites (partial list) blackvoices.com recycler.com chicagosports.com metromix.com go2orlando.com wb11.com ktla.com wgntv.com Affiliation Los Angeles Times Chicago Tribune Newsday, Long Island, N.Y. The Baltimore Sun South Florida Sun-Sentinel Orlando Sentinel The Hartford Courant The Morning Call, Allentown, Pa. Daily Press, Newport News, Va. The Advocate, Stamford, Conn. Greenwich Time, Greenwich, Conn. Description Leading online destination for African-Americans General classifieds site serving Southern California Multimedia site for local fans, launched in 2000 Chicago’s No.1 online entertainment guide Travel guide for Central Florida Internet home of WPIX-TV, New York Internet home of KTLA-TV, Los Angeles Internet home of WGN-TV, Chicago We also believe increasing bandwidth will play an important role in our interactive growth. High-speed broadband technology promises to make the Internet more compelling for consumers and advertisers alike, and Tribune’s vast multimedia capabilities position us well for the changing online environment. In fact, we are already partnering with AT&T’s cable modem service in several of our most important markets, providing customized multimedia content for distribution via PCs, digital cable TV set-top boxes and wireless handheld devices.
Slide 24: Tribune Ventures Tribune invests strategically in areas that are important and other investments to our businesses. As the pace of change quickens in the media industry, we aim to participate in emerging technologies and business models that could shape Tribune’s growth. Our primary investment vehicle is Tribune Ventures, which partners with new-media companies that have solid business plans and high growth potential. The idea for Tribune Ventures originated in 1991 when Tribune acquired a 10 percent stake in America Online. Our objective was to explore the online services business in its formative stage. Over the years, partnering with creative young companies like AOL (now AOL Time Warner) has proven helpful in growing our own businesses. We gain an inside track on new technologies, industries and business models. Tribune Ventures is an active investor. We maximize the strategic benefits of our investments by forming operating relationships with our portfolio companies. For example, in 2000, Ventures invested in The Feedroom, a broadband news network, and agreed to license the news video from Tribune’s television stations to their network. The Feedroom, in turn, will develop customized, broadband-driven Web sites for our stations that enhance their current online efforts. The major areas of Tribune Ventures’ investment activity are: I I I I I BUILDING PARTNERSHIPS Tribune Ventures invests in companies that have a strategic connection with one or more Tribune business areas. Listed below are Ventures’ investments made in 2000 or early 2001. Company DailyShopper Dotcast Eppraisals.com Legacy.com MarketResearch.com NextDoor Networks Performics RespondTV The FeedRoom TrueAdvantage Upoc Description retail promotion network datacasting over analog spectrum online valuation for art, collectibles online memorials and related services online market research sales online services marketplace online performance marketing services interactive television enabler broadband, interactive news network sales-lead services wireless instant messaging service Internet-based media and electronic commerce digital and interactive television broadband infrastructure and services online marketing services wireless applications and services The acquisition of The Times Mirror Company in 2000 heightened Tribune’s national identity and strengthened our strategic leverage in making venture investments. The merger also added new companies to the Tribune Ventures portfolio, and extended our investment network on the West Coast through a stake in Rustic Canyon, a venture capital fund. Tribune Ventures further expanded in 2000 by opening a New York office and broadening its focus in Chicago to include seed-stage investing. The Manhattan office facilitates our work with existing portfolio companies on the East Coast, and enables us to focus more closely on new investment opportunities in the region. Recent East Coast investments include MarketResearch.com and Upoc. In Chicago, our seed-stage initiative aims 20 to identify and help develop young businesses that can benefit from our team’s experience, time and attention. This has so far led to investments in Performics, Legacy.com, iExplore and Eppraisals.com. Tribune also has important strategic investments that are managed outside of Tribune Ventures. In 2000, the company acquired a 46 percent stake in CareerBuilder Inc. — a leading provider of online recruitment services for employers and job seekers — in partnership with KnightRidder.com. Tribune also is an equity partner in BrassRing Inc., another recruitment services start-up, and Classified Ventures, a network of classified advertising Web sites that includes cars.com. Tribune Broadcasting holds a 25 percent stake in The WB Television Network and, in the cable arena, owns 29 percent of TV Food Network and 9 percent of The Golf Channel. We are also a lead investor in iBlast Networks, an early innovator in “datacasting” via the digital television spectrum.
Slide 25: Tribune gives back to the communities we serve. Our businesses support a wide range of nonprofit organizations that help people in need, and Tribune employees generously donate their time, talent and money in these efforts. Most of our business units participate in the communities program of the Robert R. McCormick Tribune Foundation. In-kind contributions from Tribune units help raise funds from the public, which are matched by the Foundation. This enables our businesses to increase their impact in the community. In 2000, charitable funds sponsored by Tribune businesses and supported by the Foundation awarded grants totaling $41 million. Dollars are directed to agencies dedicated to helping children, improving health care or alleviating homelessness and hunger. Tribune’s merger with Times Mirror expands our opportunities for community development. We’ll be an even greater contributor in Southern California, where we operate KTLA-TV, Los Angeles; KSWB-TV, San Diego; and the Los Angeles Times. Likewise, our newspaper/television combinations in New York and Hartford will help raise our support level in those communities. Throughout Tribune, the depth of our community service activities and the range of causes we support are best shown by example: “Reading by 9” is an ongoing literacy program for kindergarten through third-grade classes administered by The Baltimore Sun and the Los Angeles Times. Complemented by news coverage on early childhood I reading issues and daily features, the program includes public and private partnerships, as well as volunteer and community outreach. Tribune television stations, working with BlackVoices.com, launched an innovative Black History Month initiative in 2001. The companywide multimedia project honored African-Americans who are making history today through outstanding contributions to their local communities. I More than 300 Chicago-area Tribune employees, working with the Chicago Park District and local residents, spent a full day last August building a playground for the children of Englewood, an impoverished South Side neighborhood. I The Orlando Sentinel, partnering with the YMCA, established a mentoring program in 2000 to foster development of Hispanic leaders in the community. The program, with youth and adult components, is modeled after Black Achievers, another Sentinel initiative. I Newsday’s FutureCorps, founded in 1999, is the largest student public service project ever undertaken on Long Island and in Queens, N.Y. The program introduces students to volunteerism and demonstrates how they can bring about positive change. I 21 Tribune in the Community
Slide 26: Tribune Company and Subsidiaries Management’s Responsibility for Financial Statements Financial Statements Management is responsible for the preparation, integrity and fair presentation of the Company’s consolidated financial statements and related financial information included in the Annual Report on Form 10-K to shareholders. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and necessarily include certain amounts that are based on management’s best estimates and judgments. The consolidated financial statements were audited by PricewaterhouseCoopers LLP, independent accountants. PricewaterhouseCoopers LLP was given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the Board of Directors and committees of the Board. The Company believes that all representations made to the independent accountants during their audits were valid and appropriate. Internal Control System Management is also responsible for establishing and maintaining a system of internal control, designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation of reliable published financial statements. The system of internal controls is continually reviewed for its effectiveness and is augmented by written policies and procedures, the careful selection and training of qualified personnel and a program of internal audit. Each year, the Company’s independent accountants conduct a review of internal accounting controls to the extent required by generally accepted auditing standards and perform such tests and related procedures as they deem necessary to arrive at an opinion on the fairness of the financial statements. The Audit Committee of the Board of Directors is responsible for reviewing and monitoring the Company’s financial reporting and accounting practices. The Audit Committee consists of six independent directors. The Committee meets with representatives of management, the independent accountants and internal auditors to discuss financial reporting, accounting and internal control matters. PricewaterhouseCoopers LLP and the internal auditors have direct access to the Audit Committee. John W. Madigan Chairman, President and Chief Executive Officer Donald C. Grenesko Senior Vice President/Finance and Administration Report of Independent Accountants To the Board of Directors and Shareholders of Tribune Company We have audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheets of Tribune Company as of December 31, 2000 and December 26, 1999 and the related consolidated statements of income, of cash flows and of shareholders’ equity for each of the three years in the period ended December 31, 2000 (not presented herein); and in our report dated January 26, 2001, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived. Chicago, Illinois January 26, 2001 22
Slide 27: Tribune Company and Subsidiaries Five Year Financial Summary (in thousands of dollars, except per share data) Operating Revenues 2000 1999 1998 1997 1996 Publishing Broadcasting and Entertainment Interactive Total operating revenues Operating Profit $ 3,403,028 1,465,553 41,782 $ 4,910,363 $ 700,932 449,057 (52,606) (64,372) 1,033,011 (79,374) (207,584) (165,301) 580,752 (270,351) 310,401 (86,015) – – $ 224,386 $1,559,192 1,302,058 21,034 $2,882,284 $ 426,515 378,036 (32,203) (39,506) 732,842 (40,083) (65,595) 1,756,779 2,383,943 (933,981) 1,449,962 21,807 – (3,060) $1,468,709 $1,481,324 1,153,006 17,249 $2,651,579 $ 398,846 317,355 (21,709) (35,435) 659,057 (33,980) (82,339) 119,119 661,857 (272,660) 389,197 25,075 – – $ 414,272 $ 1,423,947 1,057,529 12,771 $ 2,494,247 $ 371,135 285,896 (16,550) (34,426) 606,055 (34,696) (60,159) 111,824 623,024 (250,265) 372,759 20,866 – – $ 393,625 $1,334,032 876,750 2,607 $2,213,389 $ 304,844 203,531 (13,587) (30,935) 463,853 (13,281) (15,663) – 434,909 (175,071) 259,838 22,912 89,317 – $ 372,067 Publishing Broadcasting and Entertainment Interactive Corporate expenses Total operating profit Net loss on equity investments Net interest expense Non-operating items and minority interest expense Income from Continuing Operations Before Income Taxes Income taxes Income from Continuing Operations Before Accounting Change Discontinued Operations of Education Segment, net of tax Discontinued Operations of QUNO, net of tax Cumulative effect of change in accounting principle (1) Net Income (2) Share Information Basic EPS Continuing operations Before non-operating items Total Discontinued operations Cumulative effect of accounting change Net income Diluted EPS Continuing operations Before non-operating items Total Discontinued operations Cumulative effect of accounting change Net income Common dividends per share Weighted average common shares outstanding (000’s) Financial Ratios $ 1.40 1.06 (.32) – $ 1.53 6.03 .09 (.01) 6.11 $ 1.27 1.53 .10 – 1.63 $ 1.16 1.44 .09 – 1.53 $ .96 .98 .46 – 1.44 $ .74 $ $ $ $ $ 1.30 .99 (.29) – $ 1.41 5.49 .08 (.01) 5.56 .36 237,367 25.4% 37% $ 1.17 1.41 .09 – 1.50 .34 242,428 24.9% 35% $ 1.07 1.33 .07 – 1.40 .32 245,758 24.3% 41% $ .89 .91 .41 – 1.32 .30 245,684 21.0% 37% $ $ .70 .40 271,951 21.0% 34% $ $ $ $ $ $ $ $ Operating profit margin Debt to capital (3) Financial Position and Other Data Total assets Long-term debt (4) Shareholders’ equity Capital expenditures (1) $14,676,212 4,007,041 5,885,916 $ 302,471 $8,740,047 2,694,073 3,458,617 $ 125,578 $5,824,037 1,615,955 2,356,617 $ 128,800 $ 4,665,821 1,520,646 1,826,004 $ 98,319 $3,629,151 979,754 1,539,506 $ 87,171 This summary should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2000 Annual Report on Form 10-K. The cumulative effect of adopting a new accounting pronouncement for derivative instruments decreased net income by $3.1 million in 1999. (2) Includes non-operating items as follows: loss on change in fair values of derivatives and related investments of $62.6 million and loss on sales of subsidiaries and investments, net of write-downs of $30.5 million, totaling $93.1 million in 2000; gain on change in fair values of derivatives and related investments of $131.2 million, gain on reclassification of investments of $666.2 million, and gain on sales of subsidiary and investments of $270.1 million, totaling $1.1 billion in 1999; gain on sales of subsidiary and investments, net of write-downs, totaling $63.5 million in 1998; gain on sales of investments, net of write-downs, totaling $68.9 million in 1997; and equity income related to Qwest Broadcasting of $6.0 million in 1996. (3) Capital comprises total debt, deferred taxes and shareholders’ equity. (4) Long-term debt includes the PHONES in 2000 and 1999. 23
Slide 28: Tribune Company and Subsidiaries Business Segments (in thousands of dollars) Operating Revenues 2000 1999 $ 1,559,192 1,302,058 21,034 $ 2,882,284 $ 426,515 378,036 (32,203) (39,506) $ $ 732,842 77,768 38,864 3,378 2,711 $ $ 122,721 8,612 63,209 93 $ $ 71,914 61,710 41,730 4,966 17,172 $ $ 125,578 899,295 3,724,621 108,096 3,317,094 690,941 $ 8,740,047 $ $ $ $ $ $ $ $ 1998 $1,481,324 1,153,006 17,249 $2,651,579 $ 398,846 317,355 (21,709) (35,435) 659,057 71,927 33,362 2,592 2,761 110,642 5,175 54,357 – 59,532 63,387 44,055 2,190 19,168 128,800 720,077 3,148,814 80,776 1,191,241 683,129 $5,824,037 Publishing Broadcasting and Entertainment Interactive Total operating revenues $ 3,403,028 1,465,553 41,782 $ 4,910,363 $ 700,932 449,057 (52,606) (64,372) $ 1,033,011 $ 138,702 42,850 4,091 5,822 $ $ 191,465 102,187 72,579 4,396 $ $ 179,162 211,536 43,569 11,868 35,498 $ 302,471 Operating Profit Publishing Broadcasting and Entertainment Interactive Corporate expenses Total operating profit Depreciation Publishing Broadcasting and Entertainment Interactive Corporate Total depreciation Amortization of Intangible Assets Publishing Broadcasting and Entertainment Interactive Total amortization of intangible assets Capital Expenditures Publishing Broadcasting and Entertainment Interactive Corporate Total capital expenditures Assets Publishing Broadcasting and Entertainment Interactive Corporate Net assets of discontinued operations Total assets $ 8,653,011 3,870,720 312,446 1,840,035 – $14,676,212 24
Slide 29: Tribune Company and Subsidiaries Consolidated Statements of Income (in thousands of dollars, except per share data) Operating Revenues year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998 Publishing Advertising Circulation Other Total Broadcasting and Entertainment Interactive Total operating revenues $ 2,689,304 531,267 182,457 3,403,028 1,465,553 41,782 4,910,363 2,127,352 1,379,373 191,465 179,162 3,877,352 1,033,011 $1,184,779 241,258 133,155 1,559,192 1,302,058 21,034 2,882,284 1,328,893 625,914 122,721 71,914 2,149,442 732,842 (40,083) 47,436 (113,031) 215,876 444,927 1,095,976 $1,150,073 243,842 87,409 1,481,324 1,153,006 17,249 2,651,579 1,265,787 556,561 110,642 59,532 1,992,522 659,057 (33,980) 6,112 (88,451) – 119,119 – Operating Expenses Cost of sales (exclusive of items shown below) Selling, general and administrative Depreciation Amortization of intangible assets Total operating expenses Operating Profit Net loss on equity investments Interest income Interest expense Gain (loss) on change in fair values of derivatives & related investments Gain (loss) on sales of subsidiaries & investments, net of write-downs Gain on reclassification of investments Income From Continuing Operations Before Income Taxes, Minority Interest and Cumulative Effect of Change in Accounting Principle (79,374) 33,124 (240,708) (100,965) (48,001) – 597,087 (270,351) (16,335) 2,383,943 (933,981) – 661,857 (272,660) – Income taxes Minority interest expense, net of tax Income From Continuing Operations Before Cumulative Effect of Change in Accounting Principle 310,401 (86,015) 224,386 – 224,386 (22,984) $ 201,402 1,449,962 21,807 1,471,769 (3,060) 1,468,709 (18,639) $1,450,070 389,197 25,075 414,272 – 414,272 (18,782) $ 395,490 Income (loss) from discontinued operations, net of tax Income Before Cumulative Effect of Change in Accounting Principle Cumulative effect of change in accounting principle, net of tax Net Income Preferred dividends, net of tax Net Income Attributable to Common Shares Earnings Per Share Basic: Continuing operations before cumulative effect of change in accounting principle Discontinued operations Cumulative effect of accounting change, net Net income $ 1.06 (.32) – $ 6.03 .09 (.01) $ 1.53 .10 – $ .74 $ 6.11 $ 1.63 Diluted: Continuing operations before cumulative effect of change in accounting principle Discontinued operations Cumulative effect of accounting change, net Net income $ .99 (.29) – $ 5.49 .08 (.01) $ 1.41 .09 – $ .70 $ 5.56 $ 1.50 See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K. 25
Slide 30: Consolidated Balance Sheets Assets Current Assets (in thousands) Dec. 31, 2000 Dec. 26, 1999 $ 631,018 435,770 524,443 23,530 253,129 73,365 16,275 1,957,530 1,183,791 383,661 1,567,452 (1,055,300) 512,152 97,341 69,879 679,372 192,070 690,941 2,616,688 1,304,000 1,154,969 48,108 96,369 6,103,145 $8,740,047 Cash and cash equivalents Short-term investments Accounts receivable (less allowances of $60,348 and $37,744) Inventories Broadcast rights Deferred income taxes Prepaid expenses and other Total current assets $ 115,788 79,709 813,739 51,332 268,176 120,116 42,306 1,491,166 1,895,155 750,491 2,645,646 Properties Machinery, equipment and furniture Buildings and leasehold improvements Accumulated depreciation (1,180,906) 1,464,740 Land Construction in progress Net properties Other Assets 117,109 161,998 1,743,847 278,630 – 8,496,782 556,800 1,084,439 803,100 221,448 11,441,199 $14,676,212 Broadcast rights Net assets of discontinued operations Intangible assets (less accumulated amortization of $566,414 and $386,283) AOL Time Warner stock related to PHONES debt Other investments Prepaid pension costs Other Total other assets Total assets See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K. 26
Slide 31: Tribune Company and Subsidiaries Liabilities & Shareholders’ Equity Current Liabilities (in thousands of dollars, except share data) Dec. 31, 2000 $ 141,404 298,175 231,684 271,510 90,421 129,954 286,076 1,449,224 700,000 3,307,041 2,146,416 390,657 329,509 467,449 3,334,031 – Dec. 26, 1999 $ 30,446 153,256 110,203 276,307 62,737 24,140 158,405 815,494 1,328,480 1,365,593 1,186,272 269,698 108,015 207,878 1,771,863 – Long-term debt due within one year Accounts payable Employee compensation and benefits Contracts payable for broadcast rights Deferred income Income taxes Other Total current liabilities Long-Term Debt Other Non-Current Liabilities PHONES debt related to AOL Time Warner stock Other long-term debt (less portions due within one year) Deferred income taxes Contracts payable for broadcast rights Deferred compensation and benefits Other obligations Total other non-current liabilities Commitments and Contingent Liabilities Shareholders’ Equity Series B convertible preferred stock (without par value) Authorized: 1,600,000 shares; Issued and outstanding: 1,212,834 shares in 2000 and 1,282,665 shares in 1999 (liquidation value $220 per share) Series C convertible preferred stock Authorized: 900,000 shares; Issued and outstanding: 88,519 shares (net of 354,077 treasury shares) (liquidation value $500 per share) Series D-1 convertible preferred stock Authorized: 400,000 shares; Issued and outstanding: 76,194 shares (net of 304,778 treasury shares) (liquidation value $500 per share) Series D-2 convertible preferred stock Authorized: 300,000 shares; Issued and outstanding: 49,020 shares (net of 196,080 treasury shares) (liquidation value $500 per share) Common stock ($0.01 par value in 2000, without par value in 1999) Authorized: 1,400,000,000 shares; 536,886,513 shares issued in 2000 and 327,086,632 shares issued in 1999 Additional paid-in capital Retained earnings Treasury common stock (at cost) 236,727,470 shares in 2000 and 88,071,818 shares in 1999 Treasury common stock held by Tribune Stock Compensation Fund (at cost) 641,094 shares in 2000 and 1,223,384 shares in 1999 Unearned compensation related to ESOP Accumulated other comprehensive income Total shareholders’ equity Total liabilities and shareholders’ equity 265,790 281,093 44,284 – 38,097 – 24,510 – 3,116 8,190,811 4,278,464 (6,970,703) (26,707) (97,517) 135,771 5,885,916 $ 14,676,212 1,018 136,108 4,184,037 (1,430,900) (61,909) (127,595) 476,765 3,458,617 $8,740,047 See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K. 27
Slide 32: Tribune Company and Subsidiaries Consolidated Statements of Cash Flows (in thousands of dollars) Operations year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998 Income from continuing operations, net of cumulative effect of change in accounting principle Adjustments to reconcile income from continuing operations to net cash provided by continuing operations: Loss (gain) on change in fair values of derivatives & related investments Loss (gain) on sales of subsidiaries and investments, net of write-downs Minority interest expense, net of tax Gain on reclassification of investments Cumulative effect of accounting change, net of tax Depreciation and amortization of intangible assets Net loss on equity investments Deferred income taxes Changes in working capital items excluding effects from acquisitions: Accounts receivable Inventories, prepaid expenses and other current assets Accounts payable, employee compensation and benefits, deferred income and accrued liabilities Income taxes Change in broadcast rights, net of liabilities Other, net Net cash provided by continuing operations Net cash provided by assets held for sale and discontinued operations Net cash provided by operations $310,401 $1,446,902 $389,197 100,965 48,001 16,335 – – 370,627 79,374 (43,972) 23,155 27,850 (20,401) 122,714 7,778 50,540 1,093,367 10,607 1,103,974 (302,471) (2,793,052) (111,723) (224,700) 344,541 642,253 1,340,000 161,751 (162) (1,139) (944,702) (60,270) (1,004,972) – 513,605 (187,445) 122,497 (870,646) (52,453) (139,790) (614,232) (515,230) 631,018 $115,788 (215,876) (444,927) – (1,095,976) 3,060 194,635 40,083 711,872 (87,837) (3,308) (25,712) (49,412) 5,528 38,169 517,201 42,393 559,594 (125,578) – (189,473) (211,590) (344,541) – – 98,595 51,908 16,168 (704,511) (29,575) (734,086) 1,230,880 – (183,020) 53,960 (37,015) (167,582) (104,146) 793,077 618,585 12,433 $ 631,018 – (119,119) – – – 170,174 33,980 25,384 (33,690) (2,891) 22,203 42,844 (1,072) (64) 526,946 16,990 543,936 (128,800) – (98,436) (40,245) – – – 51,585 (52,244) (7,801) (275,941) (71,226) (347,167) – 469,878 (335,723) 46,129 (261,160) (68,988) (101,090) (250,954) (54,185) 66,618 $ 12,433 Investments Capital expenditures Acquisition of Times Mirror, net of cash acquired (excluding stock issued) Other acquisitions (excluding stock issued) Investments Net maturities (purchases) of marketable securities Proceeds from sale of discontinued operations, net of tax Proceeds from sales of assets held for sale, net of tax Proceeds from sales of investments and subsidiaries Net (increase) decrease in advances to investee Other, net Net cash used for investments of continuing operations Net cash used for investments of assets held for sale and discontinued operations Net cash used for investments Financing Net proceeds from issuance of PHONES debt Proceeds from issuance of other long-term debt Repayments of long-term debt Sales of common stock to employees, net Purchases of treasury common stock Purchases of treasury common stock by Tribune Stock Compensation Fund Dividends Net cash provided by (used for) financing of continuing operations Net Increase (Decrease) in Cash and Cash Equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K. 28
Slide 33: Board of Directors Jeffrey Chandler Andrew J. McKenna President and Chief Executive Officer, Chandler Ranch Co., an avocado producer; President and Chief Executive Officer, Western Telecommunications, Inc. Age 59. Director since 2000. Dennis J. FitzSimons Chairman and Chief Executive Officer, Schwarz Worldwide, an international distributor of paper packaging and related products and a printer, producer and converter. Age 71. Director since 1982. Kristie Miller Executive Vice President, Tribune Company. President, Tribune Broadcasting Company. Age 50. Director since 2000. Roger E. Goodan Author; Journalist, The Daily News-Tribune, Inc. of LaSalle, Illinois. Age 56. Director since 1981. James J. O’Connor Vice President of Marketing, Schlumberger Oilfield Services North America. Age 54. Director since 2000. Diego E. Hernandez Retired Chairman and Chief Executive Officer of Unicom Corporation, a holding company, and Commonwealth Edison Company, an electric utility. Age 64. Director since 1985. Patrick G. Ryan Vice Admiral, U.S. Navy (Retired); President, Marine Technology Group, Inc., a technical consulting service. Age 66. Director since 1991. Enrique Hernandez, Jr. Chairman, Chief Executive Officer and Director, Aon Corporation, a broad-based insurance holding company. Age 63. Director since 1997. William Stinehart, Jr. Chairman, President and Chief Executive Officer, Inter-Con Security Systems, Inc., an international security services firm. Age 45. Director since 2001. Robert E. La Blanc Partner, Gibson, Dunn & Crutcher LLP, a law firm. Age 56. Director since 2000. Dudley S. Taft President, Robert E. La Blanc Associates, Inc., consultants in information technology. Age 67. Director since 1982. John W. Madigan President and Director, Taft Broadcasting Company, an investor in media and entertainment companies. Age 60. Director since 1996. Thomas Unterman Chairman, President and Chief Executive Officer, Tribune Company. Age 63. Director since 1975. Nancy Hicks Maynard Managing Partner and Chief Executive Officer, Rustic Canyon Group, a private equity investment firm. Age 56. Director since 2000. Arnold R. Weber President, Maynard Partners Incorporated, consultants in news media economics. Age 54. Director since 1995. President-Emeritus, Northwestern University. Age 71. Director since 1989. 29
Slide 34: Principal Businesses and Management Corporate Management John W. Madigan Mark W. Hianik Broadcasting TRIBUNE BROADCASTING COMPANY WPHL (WB17) WTIC (FOX61) Chairman, President and Chief Executive Officer Dennis J. FitzSimons Vice President, Assistant General Counsel and Assistant Secretary Thomas D. Leach Executive Vice President Donald C. Grenesko Chicago Dennis J. FitzSimons President Gerald W. Agema Vice President/ Administration and Chief Financial Officer James L. Ellis Vice President/Group Operations Ira H. Goldstone Vice President/Engineering and Technology John F. Poelking Vice President/Controller Myrna G. Ramirez Vice President/ Human Resources Marc S. Schacher Vice President/ Programming and Development Television Philadelphia Leslie Glenn General Manager WLVI (WB56) Hartford, Conn. Gary G. Zenobi General Manager WXMI (FOX17) Vice President Development R. Mark Mallory Senior Vice President Finance and Administration Crane H. Kenney Boston Vincent Manzi General Manager KDAF (WB33) Grand Rapids, Mich. Eduardo B. Fernandez General Manager WGNO (ABC26) WNOL (WB38) Vice President and Controller Ruthellyn Musil Senior Vice President, General Counsel and Secretary Luis E. Lewin Dallas Joseph A. Young General Manager WBDC (WB50) Vice President Corporate Relations Linda Riley Mitchell New Orleans Michael C. LaBonia General Manager WPMT (FOX43) Senior Vice President Human Resources Andrew J. Oleszczuk Vice President Finance Service Center Shaun M. Sheehan Washington, D.C. Jerome P. Martin General Manager WATL (WB36) Harrisburg, Pa. John A. Riggle General Manager WEWB (WB45) Senior Vice President Development Jeff R. Scherb Vice President Washington David L. Underhill Atlanta Daniel J. Berkery General Manager KHWB (WB39) Albany, N.Y. Diana-Marie Howard General Manager WGN Cable Senior Vice President and Chief Technology Officer H. Kathleen Ameche Vice President Intergroup Development Gary Weitman Houston Thomas E. Ehlmann General Manager KCPQ (FOX13) KTWB (WB22) Vice President and Chief Information Officer Irene M. Freutel Chicago Kevin P. Murphy General Manager Radio WGN (720 AM) Vice President Communications Venture Investments Randall S. Glein Vice President Compensation and Benefits David J. Granat Tribune Television Vice President David W. Kniffin Patrick J. Mullen President Michael Eigner President/Tribune Cable Peter S. Walker Senior Vice President WPIX (WB11) Seattle Pamela S. Pearson General Manager WBZL (WB39) Vice President and Treasurer Vice President New York Lisa L. Wiersma Miami James D. Zerwekh General Manager KWGN (WB2) Chicago Stephen D. Carver General Manager and Vice President/ Radio Group KKHK (99.5 FM) KOSI (101.1 FM) KEZW (1430 AM) Vice President New York Betty Ellen Berlamino General Manager KTLA (WB5) Denver Derek M. Dalton General Manager KTXL (FOX40) Denver Jane E. Bartsch General Manager TV Programming Tribune Entertainment Company Los Angeles John E. Reardon General Manager and Vice President/ Tribune Television– West Coast Region WGN (WB9) Sacramento, Calif. Audrey Farrington General Manager KSWB (WB69) San Diego Lisé M. Markham General Manager WXIN (FOX59) Los Angeles Richard H. Askin, Jr. President Baseball Chicago John. J. Vitanovec General Manager 30 Indianapolis Linda Gray General Manager Chicago Cubs Chicago Andrew B. MacPhail President
Slide 35: Publishing TRIBUNE PUBLISHING COMPANY Interactive South Florida Sun-Sentinel National Advertising Sales Tribune Media Net TRIBUNE INTERACTIVE Chicago Jack Fuller President Raymond A. Jansen Senior Vice President Timothy J. Landon President/Classified Services Richard A. Cason Vice President/ Newsprint Procurement Philip B. Doherty Vice President/Finance Timothy R. Kennedy Vice President/Strategy and Development Sharon M. Mandell Vice President/Technology James E. O’Dell Vice President/Operations and Technology Howard A. Tyner Vice President/Editorial Daily Newspapers Los Angeles Times Ft. Lauderdale, Fla. Robert J. Gremillion President Orlando Sentinel Chicago David P. Murphy President Cable Programming CLTV News Chicago David D. Hiller President Timothy J. Landon President/Classified Services Dana J. Hayes Vice President/Sales and eCommerce Brigid E. Kenney Vice President/ Chief Financial Officer Michael O. Plonski Vice President/Chief Technology Officer Michael A. Silver Vice President/Strategy and Development Barbara Weeks Vice President/ Market Operations See inside back cover for a complete list of Tribune Web sites. Orlando, Fla. Kathleen M. Waltz President The Hartford Courant Hartford, Conn. Jack W. Davis, Jr. President The Morning Call Oak Brook, Ill. Denise E. Palmer President Central Florida News 13* Allentown, Pa. Guy L. Gilmore President Daily Press Orlando, Fla. Robin A. Smythe General Manager * partnership with Time Warner Communications Newport News, Va. Rondra J. Matthews President The Advocate Entertainment Listings and Content Syndication Tribune Media Services Stamford, Conn. Greenwich Time Chicago David D. Williams President Other Products and Services Greenwich, Conn. Durham J. Monsma President Spanish-Language Newspapers Hoy (daily) Los Angeles John P. Puerner President Chicago Tribune New York Louis Sito President ¡Exito! (weekly) Chicago Scott C. Smith President Newsday Chicago Liza E. Gross President La Opinión* (daily) Melville, N.Y. Raymond A. Jansen President The Baltimore Sun Los Angeles José Lozano President *partnership with Lozano Communications Tribune newspaper companies produce a wide range of niche publications in addition to their flagship products. These include community newspapers, lifestyle magazines and numerous publications devoted to the major classified advertising categories. Direct marketing, commercial printing and related services also are offered. Baltimore Michael E. Waller President 31
Slide 36: Shareholder Information Corporate Headquarters Direct Stock Purchase Plan Tribune Company 435 N. Michigan Ave. Chicago, Illinois 60611 312/222-9100 www.tribune.com Investor Information Tribune’s DirectSERVICE Investment Program enables both registered shareholders and new investors to buy and sell shares of Tribune common stock directly through EquiServe. Please contact EquiServe for more information. Annual Meeting This report contains only summary financial information. The complete 2000 consolidated financial statements and financial review are contained in Tribune’s Form 10-K Annual Report to the Securities and Exchange Commission. The 10-K was mailed with this report to all shareholders. Current and prospective Tribune investors can receive the annual report, proxy statement, 10-K, earnings announcements and other reports and publications at no cost by calling 800/757-1694. The annual report and related financial information also are available on Tribune’s Web site. The contact for securities analysts, portfolio managers and individual investors is Ruthellyn Musil, Vice President/Corporate Relations. Call 312/222-3787, or send e-mail to rmusil@tribune.com. Stock Information Tribune’s Annual Meeting of Shareholders will be held in Chicago on May 8, 2001, 11 a.m. Central Time, at the Hyatt Regency Chicago, 151 East Wacker Drive. The meeting will be broadcast live via satellite and distributed as follows: Telstar 5C (C Band) Transponder 23 Vertical Polarity Downlink frequency 4160 MHz Audio: left 6.2 MHz; right 6.8 MHz To confirm satellite reception instructions, please call Corporate Relations, 312/222-4432, the week prior to the annual meeting. Live audio and video from the annual meeting also will be available at www.tribune.com. Equal Employment Opportunity Tribune common stock is listed on the New York, Chicago and Pacific stock exchanges. Our ticker symbol is TRB. Tribune has increased its cash dividend for eight consecutive years. The current rate is $.11 per share per quarter. Independent Accountants Tribune believes in equal employment opportunity. The Company’s policy is to hire and promote the most qualified applicants and to comply with all federal, state and local equal employment opportunity laws. Forward-Looking Statements PricewaterhouseCoopers LLP, Chicago Transfer Agent and Registrar First Chicago Trust Company, a division of EquiServe, maintains shareholder records. For assistance on matters such as lost shares, name changes on shares or transfers of ownership, please contact: EquiServe, First Chicago Division Shareholder Services P.O. Box 2500 Jersey City, N.J. 07303-2500 800/446-2617 www.equiserve.com Photography James Schnepf Cedarburg, Wis. Cover and pages 6, 8, 10 and 12 Christopher Walker Chicago Tribune Page 3 This report contains comments and forward-looking statements that are based largely on Tribune’s current expectations and are subject to certain risks, trends and uncertainties. Such comments and statements should be understood in the context of Tribune’s publicly available reports filed with the Securities and Exchange Commission, including the most recent 10-K and 10-Q, which discuss various factors that may affect the Company’s business. These factors could cause actual future performance to differ materially from current expectations. Tribune is not responsible for updating the information contained in this report. Other photo credits David Cotton, Orlando Sentinel Communications J. Emilio Flores Glenn Kaupert, Chicago Tribune Lee Kissinger Lori Adamski Peek Maryanne Russell Phil Velasquez, Chicago Tribune 32 Design Pressley Jacobs Design Inc. Chicago Printing Litho Inc. St. Paul, Minn.
Slide 37: Tribune Web Sites Tribune Company’s home page is www.tribune.com. From there, you can link to the sites listed on this page as well as other Tribune-operated sites. The prefix for each Web address below is www. WPIX-TV, New York wb11.com KTLA-TV, Los Angeles ktla.com WGN-TV, Chicago wgntv.com CLTV News, Chicago cltv.com WPHL-TV, Philadelphia wb17.com WLVI-TV, Boston wb56.com KDAF-TV, Dallas kdaf.com WBDC-TV, Washington wbdc.com WATL-TV, Atlanta wb36.com KHWB-TV, Houston khwbtv.com KCPQ-TV, Seattle kcpq.com KTWB-TV, Seattle ktwbtv.com WBZL-TV, Miami wb39.com KWGN-TV, Denver wb2.com KTXL-TV, Sacramento ktxl.com KSWB-TV, San Diego kswbtv.com WXIN-TV, Indianapolis fox59.com WTIC-TV, Hartford fox61.com WXMI-TV, Grand Rapids wxmi.com WGNO-TV, New Orleans abc26.com WNOL-TV, New Orleans wb38.com WPMT-TV, Harrisburg fox43.com WEWB-TV, Albany wewbtv.com WGN superstation wgncable.com Tribune Entertainment tribtv.com Community & Leisure Television African-American community blackvoices.com Local sports chicagosports.com Central Florida tourism go2orlando.com Chicago guide metromix.com Los Angeles guide calendarlive.com South Florida guide showtime interactive.com Hampton Roads guide hrticket.com WGN-AM, Chicago wgnradio.com KKHK-FM, Denver thehawk.com KOSI-FM, Denver kosi101.com KEZW-AM, Denver kezw.com Newspapers Radio Los Angeles Times latimes.com Chicago Tribune chicagotribune.com Newsday (Long Island, N.Y.) newsday.com The Baltimore Sun sunspot.net South Florida Sun-Sentinel sun-sentinel.com Orlando Sentinel orlandosentinel.com The Hartford Courant ctnow.com The Morning Call (Allentown, Pa.) mcall.com Daily Press (Newport News, Va.) dailypress.com The Advocate (Stamford, Conn.) stamfordadvocate.com Greenwich Time (Greenwich, Conn.) greenwichtime.com La Opinión (Spanish/Los Angeles) laopinion.com Hoy (Spanish/New York) holahoy.com Tribune Media Services Classifieds Recruitment careerbuilder.com* brassring.com* blackvoices.com Tech jobs (Chicago) siliconprairie.com Classified Ventures* classifiedventures.com cars.com apartments.com newhomenetwork.com General merchandise (Los Angeles) recycler.com * Operated in partnership with other media companies Home page tms.tribune.com Comic strips comicspage.com TV, movie and Internet information zap2it.com Total Market Coverage and special sections products onthemarkmedia.com Animations, graphics and Web packages workingparts.com workingstock.com
Slide 38: Tribune Company 435 North Michigan Avenue Chicago, Illinois 6061 www.tribune.com 1