W W E I N V E S T O R P R E S E N TAT I O N - J A N U A R Y 2 0 1 - PowerPoint PPT Presentation

W W E I N V E S T O R P R E S E N TAT I O N - J A N U A R Y 2 0 1 7

Forward-Looking Statements This presentation contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties. These risks and uncertainties include, without limitation, risks relating to: WWE Network (including the risk that we are unable to attract, retain and renew subscribers); major distribution agreements; our need to continue to develop creative and entertaining programs and events; the possibility of a decline in the popularity of our brand of sports entertainment; the continued importance of key performers and the services of Vincent K. McMahon; possible adverse changes in the regulatory atmosphere and related private sector initiatives; the highly competitive, rapidly changing and increasingly fragmented nature of the markets in which we operate and greater financial resources or marketplace presence of many of our competitors; uncertainties associated with international markets; our difficulty or inability to promote and conduct our live events and/or other businesses if we do not comply with applicable regulations; our dependence on our intellectual property rights, our need to protect those rights, and the risks of our infringement of others’ intellectual property rights; the complexity of our rights agreements across distribution mechanisms and geographical areas; potential substantial liability in the event of accidents or injuries occurring during our physically demanding events including, without limitation, claims relating to CTE; large public events as well as travel to and from such events; our feature film business; our expansion into new or complementary businesses and/or strategic investments; our computer systems and online operations; privacy norms and regulations; a possible decline in general economic conditions and disruption in financial markets; our accounts receivable; our revolving credit facility; litigation; our potential failure to meet market expectations for our financial performance, which could adversely affect our stock; Vincent K. McMahon exercises control over our affairs, and his interests may conflict with the holders of our Class A common stock; a substantial number of shares are eligible for sale by the McMahons and the sale, or the perception of possible sales, of those shares could lower our stock price; and the relatively small public “float” of our Class A common stock. In addition, our dividend is dependent on a number of factors, including, among other things, our liquidity and historical and projected cash flow, strategic plan (including alternative uses of capital), our financial results and condition, contractual and legal restrictions on the payment of dividends (including under our revolving credit facility), general economic and competitive conditions and such other factors as our Board of Directors may consider relevant. Forward-looking statements made by the Company speak only as of the date made and are subject to change without any obligation on the part of the Company to update or revise them. Undue reliance should not be placed on these statements. For more information about risks and uncertainties associated with the Company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The company does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results. This presentation contains non-GAAP financial information, including OIBDA, Adjusted OIBDA, Net Debt and Free Cash Flow. We define OIBDA as operating income before depreciation and amortization, excluding feature film and television production amortization and related impairments. OIBDA is a non-GAAP financial measure and may be different than similarly-titled non-GAAP financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for the Company's business. In addition, we define Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. We believe that operating income is the most directly comparable GAAP financial measure to OIBDA and Adjusted OIBDA, Total Debt is the most directly comparable GAAP financial measure to Net Debt, and net cash provided by operating activities is the most directly comparable GAAP financial measure to Free Cash Flow. Neither OIBDA, Adjusted OIBDA, Net Debt nor Free Cash Flow should be regarded as an alternative to the most directly comparably GAAP financial measure as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should either metric be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. See the Appendix at the end of this presentation for a reconciliation of the non-GAAP measures presented herein. 2

A G E N D A One-of-a-Kind Media Company. Transitioning to New Media Growth Model. 1 Executing successful transformation The New 2 One-of-a-kind media company WWE – Delivering sustained growth 3 Building powerful media ecosystem 4 Attractive financial profile 5 Going forward, multiple growth drivers 3

W W E AT A G L A N C E Diversified Revenue Streams, Global Player Breakdown of LTM Q3 2016 Revenues of $700M By Geography By Business Studios / Other Consumer 2% Products 15% North 20% 73% 27% International Live America Events Media 63% High Growth Areas WWE Network – – TV – International Note: LTM=Latest twelve months ending September 30, 2016 4

Executing Transformation to New Growth Model 2015+ New Media Model 2011-2014 • WWE Network Retooling for • Sustainable growth Transformation 1999-2010 • Global expansion • Launched Traditional direct-to-consumer • New media ecosystem Media Model WWE Network • TV, live events, • Invested in new model pay-per-view • Powerful brand • Grew globally 5

F I N A N C I A L H I G H L I G H T S Clear Evidence Our Strategy is Working Record Strong 2016 est. 2016 Free Cash Total Revenue - LTM (1) Adjusted OIBDA (2) Flow - LTM (1,3) Return Up (4) $700M $80 - $84M $9M Up 29% vs. up $67M up $11 - 15M S&P600 up 16% 1. LTM refers to latest twelve months through 9/30/16. 2. 2016 Adjusted OIBDA represents company guidance for the full year ending 12/31/16. Source: WWE Q3 2016 Earnings 10/27/16 (www.ir.corporate.wwe.com). 2016 Operating Income is estimated at $54-58 million. A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company’s Q3 2016 earnings materials and in the appendix to this presentation 3. Free cash flow is a non-GAAP metric. Latest twelve months ended September 30, 2016 Net cash provided by operating activities was $37.3 million. A definition of Free Cash Flow and reconciliation to Net cash provided by operating activities is included in the appendix 4. Total return over twelve-month period 9/30/15 – 9/30/16. 6

2 0 1 6 O P E R AT I N G H I G H L I G H T S A Record Breaking Year of Achievements WWE Network Continued Growth Top 7 TV Agreements 1.4M Ending Paying in International Contractual Escalation Subscribers Revenue +23% $187M ~$190M +21% (1) $152M 1.4 +17% ~$130M 1.2 Q3 ’15 Q3 ‘16 2014 2016 LTM LTM Q3 ‘15 Q3 ‘16 • 2016 est. revenues > 2x • Predictable revenue growth; • Record highs historic PPV revenues +~$105M from 2014 to 2018 1. Compound annual growth rate over 2 year period. 7

B R A N D D E V E L O P M E N T H I G H L I G H T S Our Enduring Appeal Continues: Bringing Heroes to Life # 1 Ad Campaign in Partnership with Most liked U.S. Athlete on 43M FOLLOWERS John Cena HEROES WE CAN LOOK UP TO HEROES WE CAN SEE IN OURSELVES 8

A G E N D A One-of-a-Kind Media Company. Transitioning to New Media Growth Model 1 Executing successful transformation The New 2 One-of-a-kind media company WWE – Delivering sustained growth 3 Building powerful media ecosystem 4 Attractive financial profile 5 Going forward, multiple growth drivers 9

One-of-a-Kind Media Company 1 Powerful Global Brand 2 One-of-a-Kind Media Unmatched Company Original Content 3 Large Addressable Market 10

1. Powerful Global Brand (1) 1.4M 14.5B WWE Network Social & Digital Video Views, Paid Subscriptions #1 Sports Media Property (2) 4B 180+ Hours of WWE Content Watched Countries (TV, WWE Network and Social/Digital Video Views) 1B+ Social Media Engagements 1. Number of Countries and Paid WWE Network subscriber data is as of September 30, 2016. Social and digital video views (YouTube, Facebook, WWE.com) and social media engagements are for the latest 12 months ended September 30, 2016. During the first nine months 2016 WWE had 873M engagements, up 43% from the prior year. Hours of WWE content watched globally are for full year 2015. . 2. Source: Tubular, September 2016. Company published content only. 11