ANNUAL REPORT 2020 - Fox Corporation

ANNUAL REPORT

2020

A MESSAGE FROM

LACHLAN MURDOCH

Dear Shareholders,

The backdrop of our company's first full fiscal year was a global pandemic that changed the course of our lives, our businesses and our actions. Fox Corporation's streamlined assets and focused structure enabled us to quickly pivot to cover news impacting the lives of all Americans, adjust to the temporary hiatus in live sports and entertainment production and take care of our colleagues and partners, all while continuing to deliver strong financial and operational results.

The foundations of FOX are rooted in our commitment to create and share the content that audiences desire. The oncein-a-generation news stories of this year heightened our focus on journalistic excellence and saw viewers from across the country and across the political spectrum turn to us in record numbers. Throughout the pandemic and during ongoing conversations about social justice and the upcoming presidential election, our local and national news coverage kept audiences abreast of the health, societal and economic developments impacting their lives.

Audiences have unparalleled connections to our brands and unrivaled trust in our news organizations. In fact, we ended fiscal year 2020 with recordbreaking viewership at FOX News. Over the course of the summer, from Memorial Day through Labor Day, FOX News was the number one network in primetime among all broadcast and cable networks. Similarly, our FOX Television Stations have increased their news productions, ensuring that viewers have information most relevant to their cities and towns. Our viewers are spending more time watching their FOX stations than ever before. In the fourth quarter, our Stations experienced a 40% increase in viewership year-over-year.

At the FOX Network, this fiscal year was momentous. FOX was the number one broadcast network of the 2019?2020 television season among adults 18?49 -- a tribute to our powerful combination of sports and entertainment programming. In February, we broadcast Super Bowl LIV, the mostwatched live television event of the calendar year. Approximately 150 million unique multiplatform viewers across the country tuned in to watch the game. On Super Bowl Sunday, FOX had one of the highest revenue days in TV history, generating approximately $600 million of gross revenue and providing an unmatched promotional platform for our advertising partners and our own content from across the company.

FOX was the only broadcast network to deliver year-over-year ratings gains among adults 18?49 and total viewers. We outperformed the number two network by 31% in the key demo, driven by The Masked Singer, the 2019?2020 broadcast season's number one entertainment series, LEGO Masters, the season's top new entertainment reality program, and 9-1-1: Lone Star, the season's number one new scripted show.

We expanded the FOX portfolio this year with several disciplined acquisitions. Advertisingsupported streaming platform Tubi and emerging fintech marketplace Credible are already growing with the support and scale of FOX behind them. Our concentration on digital opportunities also includes continued focus on the opportunities presented by FOX Nation and FOX Bet. Using the reach of our leading

brands and the connections consumers have with them, we are accelerating the growth of these digital businesses that complement our core competencies. In turn, the digital investments we've made extend the reach of our FOX brands beyond their traditional linear models, expanding their consumer base and creating new ancillary revenue streams.

The work we've done this year, the plans we've established and the strategy we are executing have enhanced our formidable brands and assets, making us even better positioned to compete and thrive. And while we are pleased to deliver impactful results for you, our shareholders, our greatest accomplishment was the service we offered our viewers.

As the world grappled with a pandemic and our nation engaged in difficult dialogues, FOX displayed an unwavering dedication to covering news and stories that deserved to be told, providing platforms for a multiplicity of voices and opinions, as well as supporting open and inclusive debate. Our legacy of success, meaningful achievements this year and positive outlook for the future demonstrate that we have every reason to continue this steadfast commitment to newsgathering and reporting.

Sincerely,

Lachlan Murdoch

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