1

What Equity Does

• Equity Marketing is a promotions company

• Product tie-ins

• Contests

• Consumer products

• Consumer behavioral management

• Kids marketing

2

Core Strategy

• Increase offeringsto its clients

• Expandthroughacquisitions

Johnson Grossfield

2004

ConsumerProducts

Marketing Services

EMAK

SCI Promotions

2003

Upshot2002

LogistixKids2001

Equity Marketing Services

• Builds brand awareness through product and service tie-ins

• Access to a wide assortment of trademarks

• Can utilize trademarks effectively and creatively

3

Equity Consumer Products

• Develops, manufactures, and distributes products based on popular licenses

• Product safety & effective design

• Source of fat returns

I’m Gabe’sFavorite

Upshot

• Consumer behavioral Management- What people respond to

• Specializing in:– Promotion

– Event marketing

– Collaborative marketing

– Environmentalbranding

4

SCI Promotions

• Contests, competitions, sweepstakes

• Specialize in retail

• Creativity synergies (SCI,Upshot)

Logistix Kids Worldwide

• Leading specialist in marketing to children under 16 in UK.

• Focuses on extensive research

• Equity Marketing derives 22% of sales outside the US

5

Quality Research

Quality Research

6

Johnson Grossfield

• Newest acquisition

• Emphasis on quality, creativity, safety

• Subway (Bayer, Clorox) largest clients

Risks

• Impairment• Inventory obsolesce• Lead time• Not choking on poke balls/ law suites• Foreign currency• One major client

7

Equity Marketing is Undervalued

• True performance is overshadowedby major client

• Not widely followed by the analyst community

• Past events

Relative Valuation

Expected Growth Rate

P / Sales

EV / EBIT

P / Book

PE Current

Multiple

11%15%

1.870.39

12.003.70

2.231.81

25.5811.98

Advertising IndustryEMAK

8

Questions