GRAPHIC

April 15, 2016

Dear Fellow Shareholder,

       During a time of exciting change across the media industry, CBS Corporation delivered another strong year in 2015. We grew our revenue, which came in at $13.9 billion. And we posted record adjusted EPS* of $3.31 – our sixth straight year of EPS growth – even as we continued to invest in our future with new premium content and direct-to-consumer services. So as we grow in the near term, we are setting ourselves up to grow even more in the long term.

       What's more, we see a stable economy, with continued strength in advertising and an international marketplace that's exploding with new opportunities. All of this is why we're so confident about our future.

       None of our success would be possible without the strength of our content, starting with the CBS Television Network. We ended the 2014-15 television season as the most-watched network for the 12th time in 13 years, and we are on track to win the current season yet again. Across the multi-platform media landscape, CBS has the most-watched programming in the business. Every week our primetime lineup routinely has more Top 10 shows than any other network, including the season's #1 comedy, The Big Bang Theory, and the #1 drama, NCIS.

       CBS also continues to offer the best in live events, including this year's Super Bowl 50, which was the third highest-rated broadcast in the history of television, capping off another terrific NFL season for us. In addition, we recently retained the rights for Thursday Night Football for two more years, with five games in the first half of each season. And we extended our agreement with Turner Sports to broadcast the NCAA Division I Men's Basketball Championship through 2032. Along with SEC Football and PGA Golf, we have lucrative sports rights agreements locked up for years to come.

       At CBS News, we are adding viewers faster than any other broadcast news division as a result of our commitment to quality journalism. Season to date, more people have watched CBS News programs than any other broadcast network, led by 60 Minutes, which remains the #1 overall news program nearly 50 years after its debut. At the same time, we've expanded our operations online with CBSN, our digital streaming news network. Since launching in the fall of 2014, CBSN has grown every quarter, and it's reaching viewers that are about 20 years younger on average than broadcast or cable news viewers, making it very attractive to advertisers.

       In late night, 2015 was a pivotal year with the launch of The Late Show with Stephen Colbert and The Late Late Show with James Corden, marking the first time in the history of broadcast television that any network changed two late-night hosts within six months. Stephen Colbert is the only late-night show in its time period to grow in viewers and key demographics from a year ago. And James Corden has become a social media sensation, with each "Carpool Karaoke" segment becoming a viral hit. Now that we own both of our

   


* Adjusted net earnings from continuing operations per diluted share


late-night shows, we are able to monetize them in all sorts of new ways that we never could before.

       From entertainment to sports to news, CBS has the content that audiences want, which continues to fuel increases in the retransmission consent fees we get from cable, satellite, and telco operators and the reverse compensation we get from our affiliates. Every deal we do resets the bar higher. As a result, we are set to hit $1 billion in annual revenue from these sources in 2016.

       At the same time, we are reaching new and younger viewers through our subscription streaming service, CBS All Access. Subscriptions are growing month after month, and we expect a significant lift with next year's launch of Star Trek, the first new original series that will air on CBS All Access after we premiere the initial episode on the CBS Television Network.

       The international marketplace is offering new opportunities for CBS as well. In 2015, we hit $1.5 billion in revenue from international content sales, up from $500 million a decade ago. And we are set up for continued growth as we own more programming and have more places to sell it to, thanks to the proliferation of international streaming outlets.

       Our Cable Networks business is also benefitting from new revenue sources. Just as we did with the CBS Television Network, we are having great success at Showtime by applying our strategy of owning more content and monetizing it across platforms. It starts with having the best year-round lineup in premium cable, including Homeland, Ray Donovan, Masters of Sex, The Affair, and our newest hit, Billions, which had the highest-rated Showtime series premiere ever when it debuted in January.

       With a deep bench of hits unequaled in the industry, we are now driving our results by licensing our entire Showtime portfolio in the international marketplace. This started last year with a groundbreaking deal with Bell Media in Canada, continued with expansion into the UK, Ireland, Germany, Austria, and Italy through an agreement with Sky, and then extended into Australia through a deal with Stan, a joint venture between Nine Entertainment and Fairfax Media. As we negotiate deals in other territories, we are opening up another terrific revenue stream.

       In the U.S., we are offering audiences the opportunity to get our Showtime programming in a whole new way with our over-the-top subscription service. By going directly to consumers, we are making Showtime much more accessible to 90 million homes in a way we never could before. We launched this service in July, and it's already exceeding our expectations, growing with each show we premiere.

       In addition to our original series, we raised the profile of the Showtime brand in 2015 with marquee boxing events. In fact, we had the highest-grossing pay-per-view event of all time when Floyd Mayweather defended his title against Manny Pacquiao. Along with the broadcast of Super Bowl 50 on CBS this past February, in the span of nine months, CBS Corporation had two of the biggest revenue days in the history of television.

       Turning to Publishing, premium content is driving our success at Simon & Schuster. We had 249 New York Times bestsellers in 2015, with 32 reaching #1. Leading the way was All the Light We Cannot See by Anthony Doerr, which won the 2015 Pulitzer Prize for Fiction and has remained on the New York Times bestseller list for nearly two years. Looking ahead, we have one of the most highly anticipated books of 2016 with Born to Run, a memoir by the great singer/songwriter Bruce Springsteen.


       In Local Broadcasting, our TV stations continue to benefit from steady increases in retransmission consent fees as well as big-event television on the CBS Television Network. This past February, we had our best local Super Bowl and Grammy sales ever, and our Local Broadcasting segment will also benefit from what's shaping up to be a record year for political advertising in 2016. At the same time, we recently announced plans to pursue strategic initiatives for our Radio business. Just as we did when we split-off CBS Outdoor, our goal is to unlock value for our shareholders and focus the CBS Corporation even more on its core strategy of premium content.

       Across our Company, we are taking steps to grow in a way that is right for CBS – and right for our shareholders. We have a strong legacy of success, and upholding it is something we take very seriously. We are a company that delivers on its promises, a company that has a plan for growth, and most of all a company that isn't afraid to meet a world of change head on. We remain confident in our future, and we believe CBS is the best place for people to invest their trust. We thank you for your continued support.

GRAPHIC

Leslie Moonves
Chairman of the Board, President and Chief Executive Officer

* Adjusted net earnings from continuing operations per diluted share referred to in this letter is a non-GAAP financial measure. For a reconciliation of this non-GAAP financial measure to reported results and for more information on the Company's 2015 results, please refer to the "Supplemental Disclosures Regarding Non-GAAP Financial Information" found at the end of our earnings release for the fourth quarter and year ended December 31, 2015, which is available in the Investors/Financial & Stock Information section of our website at www.cbscorporation.com. This letter should be read in conjunction with CBS Corporation's 2015 Annual Report on Form 10-K, including the risk factors and the "Cautionary Statement Concerning Forward-Looking Statements" discussed therein, which is available in the Investors/SEC Filings section of our website.