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Nielsen Holdings plc
675 6th Avenue, 3rd Fl.
New York, NY 10010
646-441-2004

Nielsen Investor Relations
+1.646.654.8153
ir@nielsen.com

Press Release Details

Nielsen Details “Path to 2020” Transformation Plan at 2017 Investor Day

11/09/2017

Company Expects to Deliver $500 Million in Annualized Cost Savings and Significant Margin Expansion Over Next Three Years;

Targets 4% Constant Currency Revenue CAGR and Double-Digit GAAP EPS CAGR Through 2020;

Reaffirms 2017 Financial Outlook and Announces 2018 Guidance

NEW YORK--(BUSINESS WIRE)-- During its annual Investor Day event being held today in Florida, Nielsen (NYSE: NLSN) will provide a detailed view of the company’s plan to deliver shareholder value by investing in innovation for growth and efficiency. The company will build on more than 90 years of continuous innovation and proven market leadership with Nielsen’s “Path to 2020,” which is expected to result in annualized cost savings of $500 million and roughly 400 basis points of adjusted EBITDA margin improvement over the next three years. Additionally, Nielsen targets a double-digit GAAP earnings per share CAGR through 2020.

Nielsen will outline plans to create a stronger, higher margin business that will enhance value for its clients and shareholders. This includes leveraging technology and machine learning to automate data collection for Nielsen’s Buy and Watch segments, as well as initiatives to generate significant savings from Selling, General and Administrative expense. The company plans to reinvest a portion of the $500 million of cost savings to fund future growth initiatives and to continue its balanced capital allocation approach.

“We remain laser focused on driving growth and efficiency to deliver strong shareholder value. Throughout our company’s history, we have consistently leveraged change as a means for progress. In the recent past, we invented, built and launched Total Audience and we have fundamentally enhanced our Watch and Buy products with an open approach, through data partnerships and collaborative application development. Our ability to successfully navigate periods of market change through a commitment to innovation, a global footprint, focus on growth and efficiency, and our uniquely better products will accelerate our transformation and position Nielsen well for the future,” said Mitch Barns, CEO, Nielsen.

Maintains 2017 Guidance; Provides 2018 Guidance

The company is maintaining its full year 2017 guidance.

The company has also provided guidance for the full year 2018 as highlighted below:

  • Total revenue growth on a constant currency basis: ~3%
  • Adjusted EBITDA margin growth on a constant currency basis: ~(60)bps
  • GAAP net income per share: $1.40 - $1.46
  • Free cash flow: ~$800 million

Forward-looking Statements

This news release includes information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements include those set forth under “Maintains 2017 Guidance; Provides 2018 Guidance” above as well as those that may be identified by words such as “will”, “intend”, “expect”, “estimate”, “anticipate”, “should”, “could”, “shall”, and similar expressions. These statements are subject to risks and uncertainties, and actual results and events could differ materially from what presently is expected. Factors leading thereto may include without limitations general economic conditions, conditions in the markets Nielsen is engaged in, behavior of customers, suppliers and competitors, technological developments, as well as legal and regulatory rules affecting Nielsen’s business and specific risk factors discussed in other releases and public filings made by the company (including those described in the forward-looking statements can be found under the section entitled “Part I—Item 1A. Risk Factors” of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and in other filings with the Securities and Exchange Commission). This list of factors is not intended to be exhaustive. Such forward-looking statements only speak as of the date of this press release, and we assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events, or other factors, except as required by law.

Non-GAAP Information

This press release contains certain non-GAAP financial measures. See the Investor Day presentations posted on our Investor Relations website for additional information regarding the definition and use of these measures, including a reconciliation of these measures to financial information presented in accordance with GAAP.

About Nielsen

Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

Source: Nielsen Holdings plc

Nielsen Holdings plc

Investor Relations:

Sara Gubins, 1-646-654-8153

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Media Relations:

Anne Taylor Adams, 1-646-654-5759