Lee Enterprises Incorporated : Q2’24 Earnings Presentation

SECOND QUARTER FY2024 EARNINGS

MAY 2, 2024

SAFE HARBOR

The information provided in this presentation may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such

forward-looking statements. Words such as "aims", "anticipates," "plans," "expects," "intends," "will,"

"potential," "hope" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to

differ materially from the results expressed or implied by statements relating to the Company may be found in the Company's periodic filings with the Commission, including the factors described in the sections entitled "Risk Factors," copies of which may be obtained from the SEC's website at www.sec.gov. The Company does not undertake any obligation to update forward-looking statements

contained in this presentation.

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LEE'S STRATEGY FOR DIGITAL TRANSFORMATION:

THE THREE PILLARS

LEE IS RAPIDLY TRANSFORMING FROM A PRINT-CENTRIC TO A DIGITAL-CENTRIC COMPANY

PILLAR 1	PILLAR 2	PILLAR 3
Expand our audience by	Accelerate digital	Diversify and expand
providing compelling local	subscription growth	offerings
content		for local advertisers

Lee expects the Three Pillar Digital Growth Strategy to drive more than

$450 million of digital revenue within five years, resulting in a business that is

sustainable and vibrant from solely our digital products

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INDUSTRY-LEADING DIGITAL GROWTH

Digital Sub Revenue

Growth Leads Industry

$74M LTM Digital Sub Revenue

Industry-leading 54% YOY(1) LTM growth

Dec 2023 3-Year CAGR

Digital Agency Revenue Growth Leads Industry

$92M LTM Amplified Revenue

Industry-leading 8% YOY(1) LTM growth

Dec 2023 3-Year CAGR

Total Digital Revenue Growing Significantly

$285M LTM Total Digital Revenue

Total Digital Revenue up 12% YOY(1) LTM

LTM Mar FY24 YOY

	$285M
$256M
LTM Mar '23	LTM Mar '24

1. Same-storerevenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include

1. business divestitures and (2) the elimination of stand-alone print products discontinued within our markets.

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STRATEGY IS TRANSFORMING THE COMPOSITION OF REVENUE

REVENUE MIX

% Digital

FY2020

Q2 FY2024

21%

48%

Prior to launch of Three Pillar	Industry-leading digital
revenue growth is transforming
Digital Growth Strategy
the mix of revenue
7%

Expected to reach inflection point in the next quarter

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LONG-TERM OUTLOOK: DIGITAL SUBSCRIPTIONS

• Content that Drives Conversion

Digital Subscription Growth

	• Impactful local journalism that informs and connects					1.2M
	our local communities
						$150M
• Branding: WHERE YOUR STORY LIVES
	• Sophisticated marketing campaign maximizes				771K
	subscriber & revenue growth
				721K
•	User Experience: Next-GenApp				$90M
		532K
			402K		$61M
• Meaningfully reduce churn: MarTech platforms and AI with
215K
	predictive analysis allow us to price based on engagement		$39M
		$28M
	and precisely target retention campaigns
	$19M
		FY20	FY21	FY22	FY23 FY24E	FY28E
					Revenue	Subscribers

Lee expects $150 million in digital sub revenue in 2028

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LONG-TERM OUTLOOK: DIGITAL REVENUE

DIGITAL REVENUE GROWTH IS FUELED BY AMPLIFIED AND DIGITAL SUBSCRIPTION GROWTH

• Amplified will drive digital marketing services revenue growth
• Our owned & operated digital products provide a unique opportunity to grow high margin digital advertising revenue
• We expect significant growth in digital subscribers
• • Expect 1.2 million digital subscribers by 2028, assuming modest penetration of the current addressable market
• We expect to drive digital subscription revenue even faster
• • Expect ARPU expansion as introductory pricing becomes a smaller piece of the subscriber base
  • Maximizing ARPU through data and sophisticated analytics

Digital Revenue Outlook

$500M				$450M
$400M
			$320M(1)
$300M			$273M
$200M
$100M
$M
FY20	FY21	FY22	FY23 FY24E	FY28E

Lee expects $450 million in Digital Revenue in 2028

(1) $320M represents the midpoint of our 2024 Outlook.

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SECOND QUARTER 2024 RESULTS

Q2 Revenue

Total Digital Revenue $71M, +11% YOY on a Same-store basis(1)

• Digital subscription revenue $20M, +48%(1)
• Digital advertising revenue $45M, flat(1)

• Amplified Digital® revenue $23M, +5%(1)

Total Print Revenue $76M, -24%(1)

Total Operating Revenue $147M, -11%(1)

Q2 Cash Costs(2)

• Total Cash Costs $133M, -16%

Q2 Adjusted EBITDA(2)

• Adjusted EBITDA $15M, +5%

Adjusted EBITDA growth

Continued digital

revenue growth

Strong cost control

of legacy business

Investments to drive

digital transformation

1. Same-storerevenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include

1. business divestitures and (2) the elimination of stand-alone print products discontinued within our markets.

(2) Adjusted EBITDA and Cash Costs are non-GAAP financial measures. See appendix.	8

LEE EXPECTS TO BE SUSTAINABLE WITHOUT RELIANCE ON PRINT IN 5 YEARS

DIGITAL REVENUE, DIRECT COSTS, DIRECT MARGIN

	Q2 FY24
Digital Revenue	$71M
Digital Direct Costs(1)	$21M
Digital Direct Margin(2)	$49M
Margin %	70%

Key Transformation Priorities:

• Maximize monetization of O&O products
• Retain and grow spending from local advertising partners
• Increase ARPU with local advertisers through Amplified
• Acquire and retain strategic top agency accounts
• Maximize subscription & revenue opportunities in our vast addressable market
• Invest and create local content that drives engagement

Scaling digital business can sustain long-term outlook

1. Digital Direct Costs is a non-GAAP performance measure that includes Cost of Goods Sold ("COGS") directly tied to digital products. Digital Direct Costs excludes all Selling, General, and Administrative ("SG&A") costs.

(2) Digital Direct Margin is a non-GAAP performance measure calculated as Digital Revenue less Digital Direct Costs.	9

STRONG TRACK RECORD OF SUSTAINABLE COST MANAGEMENT

Total Cash Costs(1)

$1.0B

$705M	$693M	$615M

2017202020222023

	$20M
$615M	$45-65M
$570-
	590M

KEY TAKEAWAYS

• Proficient in driving efficiencies
• • Current base of $237M of direct costs associated with our legacy revenue streams that will be managed with associated revenue trends
  • Ongoing initiatives aimed at optimizing manufacturing, distribution, and corporate services
• Thoughtful investments in digital future
• • Significant investments made in talent and technology to fund successful execution of three-pillar strategy
  • Hired Chief Transformation and Commercial Officer with deep passion and expertise in media, tech, and innovation
  • Acquisition and retention of top talent focused on digital subscriber growth and expanding reach of Amplified Digital®
  • Increase in digital COGS driven by rapid growth in digital revenue

Managing legacy business & investing in digital future

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1. Adjusted EBITDA and Cash Costs are non-GAAP financial measures. See appendix.