1. SA/CMU Stock Pitch Competition Nexstar Broadcasting Group (NASDAQ:NXST) 4.4.2015 Christian Lamarco & Bryan Thomas

2. Thesis Nexstar operates duopoly markets which generate generous amounts of FCF then used in its acquisition arbitrage model. The upcoming 2016 spectrum auction provides a hedge against potential anti-trust issues and internal competition. Retransmission consent fees are a high margin revenue stream set to benefit Nexstar in the long term. The growth in political ad spend should prove to be a key driver in 2016 revenues due to Nexstar’s strategic positioning in swing states. Employing conservative estimates of all line items in a DCF valuation, we believe Nexstar’s fair value is $92, representing 59% upside.

3. Company Overview NXST: A television broadcasting and digital media company focused exclusively on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets in the United States, primarily from 30 to 175 of 210 DMAs.

4. Business Model

5. Strategy Strategic acquisitions Funded by debt/FCF Distressed Valuations Middle Market DMAs Local ads vs national Duopolies within DMAs 8% higher margins

6. Trends in TV Viewers watching more TV than ever before. Local ads displacing national shift away from TV. Economics of the TV industry make disruption unlikely.

7. Growth Drivers / Catalysts Retransmissions Digital opportunities Larger strategic acquisitions Return capital to shareholders 2016 political ad spend 2016 Spectrum auction

8. The Market Consensus / Bear Thesis Advertisers are moving entirely from TV to digital. Netflix, Apple, etc. will disrupt the TV/Broadcasting industry. The company’s debt load is too much to bear. JSAs, SSAs, and Anti-Trust all remain significant threats.

9. Risk: Highly Leveraged Nature of the business FCF is compounding at 61% annually. TIE ratio shows steady improvement on top and bottom. Share price moving in line. Debt to assets has been decreasing. Share price moving in line.

10. Risk: Cable Cutters Cable users as a percentage of all tv watchers has fallen from 68% to 57% from 1996 to 2015. Displaced by ADS NXST stations still shown on DTV, DISH, etc. NXST is still paid retransmission fees from ADS subscribers.

11. Risk: Anti-Trust Concerns Nexstar’s duopoly operating model lends itself to possible antitrust litigation. National level Sitting at 18% of 39% cap. Within DMAs Spectrum auction protects downside.

12. Valuation P/E = 28.89 P/FCF = 12.70 EV/EBITDA = 10.75

13. Valuation

15. Q&A

16. Appendix (A): Share Price (1 year)

17. Appendix (A): Share Price (5 years)

18. Appendix (B): TV Still the Most Influential

19. Appendix (C) : Revenue Mix Changes

21. Appendix (D): P/FCF Valuation

22. Appendix (D): Comparables Analysis

23. Appendix (E): Spectrum Auction