W W E I N V E S T O R P R E S E N TAT I O N - M A R C H 2 0 1 7 - PowerPoint PPT Presentation

W W E I N V E S T O R P R E S E N TAT I O N - M A R C H 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 acquisitions; 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 indebtedness; 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. 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 2016 Revenues of $729M By Geography By Business Studios / Other Consumer 2% Products 15% North America 74% 26% International Live 20% Events 63% Media High Growth Areas WWE Network – – TV – International 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

2 0 1 6 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 Operating Income Adjusted OIBDA (1) Free Cash Flow (2) Revenue +44% +17% $729M $56M $80M $27M up $70M up $17M up $11M 1. A definition of Adjusted OIBDA and a reconciliation to Operating Income can be found in the Company’s Q4 2016 earnings materials and in the appendix to this presentation 2. Free cash flow is a non-GAAP metric. A definition of Free Cash Flow and reconciliation to Net cash provided by operating activities is included in the appendix to this presentation 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 +11% $189M ~$190M +21% (1) $170M 1.4 +15% ~$130M 1.2 2015 2016 2014 2016 2015 2016 • 2016 revenues nearly 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 15.1B+ WWE Network Social & Digital Video Views, Paid Subscriptions Top 3 Sports Media Property (2,3) 6B 180+ Hours of WWE Content Countries Watched (4) (TV, WWE Network and Social/Digital Video Views) 1.1B+ Social Media Engagements (2) 1. Data reflects 2016 results 2. Social and digital video views (YouTube, Facebook, WWE.com) and social media engagements increased year-over-year by 56% and 45%, respectively 3. Source: Tubular. Company published content only 4. Note: 2016 India consumption data was expanded to include urban and rural areas vs. 2015 methodology which was limited to urban areas only 11

2. Unmatched Original Content – 100% Owned • Added 300+ hours of original content and 2,500+ hours of archival content in 2016 • ~7,000+ VOD hours available on WWE Network • ~140 superstars and divas • ~350 live events per year* • 34,000 short form clips Monetized globally in 20 languages through traditional TV, social and digital platforms and WWE Network * Excludes NXT live events, which are designed to showcase the Company’s emerging talent and are typically characterized by l ower average attendance and lower average ticket prices 12