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  • Slide 1
  • New York Hamburg London Los Angeles Madrid Mexico City Sao Paulo Sydney Toronto Copyright 2009 ORION Trading www.oriontradingworldwide.com
  • Slide 2
  • Agenda 1 | www.oriontradingworldwide.com Overview Case Studies The ORION Advantage
  • Slide 3
  • Clients 2 | www.oriontradingworldwide.com The ORION Advantage Overview Case Studies
  • Slide 4
  • ORION Trading is a member of the constellation of companies within Mediabrands and is wholly owned by the Interpublic Group of Companies ORION Trading is a media company that offers barter as a client service Established in 1996 as the first global major agency-owned barter agency Seamless agency integration Sarbanes Oxley compliant Interpublic and its operating companies employ 43,000 people in approximately 130 countries worldwide serving a total of more than 4,000 multinational, regional and local clients, representing many of the best-known corporations and brand names Our clients continue to execute multiple transactions and have come to see barter as a strategic initiative for their organizations Brian McMahon, CEO ORION Trading 3 | www.oriontradingworldwide.com ORION Trading Introduction The ORION Advantage Overview Case Studies
  • Slide 5
  • ORION Trading is a member of the constellation of companies within Mediabrands and is wholly owned by the Interpublic Group of Companies ORION Trading is a media company that offers barter as a client service Established in 1996 as the first global major agency-owned barter agency Seamless agency integration Sarbanes Oxley compliant Interpublic and its operating companies employ 43,000 people in approximately 130 countries worldwide serving a total of more than 4,000 multinational, regional and local clients, representing many of the best-known corporations and brand names Our clients continue to execute multiple transactions and have come to see barter as a strategic initiative for their organizations Brian McMahon, CEO ORION Trading 4 | www.oriontradingworldwide.com ORION Trading Introduction The ORION Advantage Overview Case Studies
  • Slide 6
  • ORION Tradings Global Footprint We know your core creative ideas, brand strategies, and how you buy. 5 | www.oriontradingworldwide.com IPG Network Orion 181 offices in 119 countries across the Globe The ORION Advantage Overview Case Studies
  • Slide 7
  • The ORION Advantage ORION Trading: Purchases underperforming/impaired assets at full value in exchange for trade credit on future advertising Clients use this credit to offset up to 20% of cash for media as planned & priced by their advertising agency Benefits of working with ORION Trading: Loss avoidance on the disposition of assets Increase cash flow as trade credits fund up to 20% of pre-budgeted advertising expenses Preserve advertising budgets and marketing strategies Media execution is based on clients strategy and will meet or exceed expectations Close collaboration with the clients advertising agency 6 | www.oriontradingworldwide.com The ORION Advantage Overview Case Studies
  • Slide 8
  • Step 1 The Barter Process 7 | www.oriontradingworldwide.com Evaluation Review clients media plan (pricing, budgets, dayparts, demographics, etc.) Coordinate with both the clients media team and advertising agency to identify those portions of the media plan that we can effectively deliver to the clients exact specifications including all added value elements Evaluation Review clients media plan (pricing, budgets, dayparts, demographics, etc.) Coordinate with both the clients media team and advertising agency to identify those portions of the media plan that we can effectively deliver to the clients exact specifications including all added value elements Step 2 Acquisition Specific assets are evaluated - examples: aircraft, consumer goods, real estate, capital equipment, receivables, end of line products and securities Approve resale procedures in accordance with clients requirements Draft and review the trade agreement Acquisition Specific assets are evaluated - examples: aircraft, consumer goods, real estate, capital equipment, receivables, end of line products and securities Approve resale procedures in accordance with clients requirements Draft and review the trade agreement Step 3 Fulfillment The client and their advertising agency will retain total control of the media plan and will continue to plan and cost all media Approval for the buy is authorized by client before media is purchased Buys are executed to the clients exact specifications Post analysis delivered Fulfillment The client and their advertising agency will retain total control of the media plan and will continue to plan and cost all media Approval for the buy is authorized by client before media is purchased Buys are executed to the clients exact specifications Post analysis delivered The ORION Advantage Overview Case Studies
  • Slide 9
  • Step 1 The Barter Process (alt 1) 8 | www.oriontradingworldwide.com Evaluation Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client The plan is passed to ORION Trading BEFORE activity is confirmed with the media owner(s) Evaluation Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client The plan is passed to ORION Trading BEFORE activity is confirmed with the media owner(s) Step 2 Acquisition Orion Trading advise client/agency as to anticipated level of barter credits that can be utilised on the plan An inventory of appropriate size is identified by client and sent to ORION Trading along with any re-marketing restrictions and book value details ORION Trading confirm inventory is appropriate and issue contract to client Acquisition Orion Trading advise client/agency as to anticipated level of barter credits that can be utilised on the plan An inventory of appropriate size is identified by client and sent to ORION Trading along with any re-marketing restrictions and book value details ORION Trading confirm inventory is appropriate and issue contract to client Step 3 Fulfillment Client return signed contract to ORION Trading Inventory is received by ORION Trading The media is then purchased by ORION Trading to the exact specifications set by the advertising agency/department Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised Fulfillment Client return signed contract to ORION Trading Inventory is received by ORION Trading The media is then purchased by ORION Trading to the exact specifications set by the advertising agency/department Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised The ORION Advantage Overview Case Studies
  • Slide 10
  • Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 The Barter Process (alt 2) 9 | www.oriontradingworldwide.com Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client The ORION Advantage Overview Case Studies The plan is passed to ORION Trading BEFORE activity is confirmed with the media owner(s) Orion Trading advise client/agency as to anticipated level of barter credits that can be utilised on the plan An inventory of appropriate size is identified by client and sent to ORION Trading along with any re-marketing restrictions and book value details ORION Trading confirm inventory is appropriate and issue contract to client Client return signed contract to ORION Trading Inventory is received by ORION Trading The media is then purchased by ORION Trading to the exact specifications set by the advertising agency/department Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised
  • Slide 11
  • Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 The Barter Process (alt 3) 10 | www.oriontradingworldwide.com Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client The ORION Advantage Overview Case Studies The plan is passed to ORION Trading BEFORE activity is confirmed with the media owner(s) Orion Trading advise client/agency as to anticipated level of barter credits that can be utilised on the plan An inventory of appropriate size is identified by client and sent to ORION Trading along with any re- marketing restrictions and book value details ORION Trading confirm inventory is appropriate and issue contract to client Client return signed contract to ORION Trading Inventory is received by ORION Trading The media is then purchased by ORION Trading to the exact specifications set by the advertising agency/department Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised
  • Slide 12
  • The Mechanics of the Barter Process 11 | www.oriontradingworldwide.com The ORION Advantage Overview Case Studies [Company Name]AOR Media VendorORION Asset Revenue Loss Media Budget: Cash Outlay Media Budget: Cash Outlay $1mm $200k ($800k) $5mm $1mm $200k ($800k) $5mm With Barter $1mm $1mm TC 0 $5mm $4mm $1mm $1mm TC 0 $5mm $4mm 1.Plan AOR 2.Price AOR 3.Approve Client/AOR 4.Post ORION 1.Plan AOR 2.Price AOR 3.Approve Client/AOR 4.Post ORION Financing + Capital Assets = Leverage R1: R2: R1: R2: $4mmcash for media $200kcash from asset $4mmcash for media $200kcash from asset $1mm TC $4.2mm
  • Slide 13
  • Television / Radio Print / OOH Interactive International Trade Credits Can be Utilized Across all Media Formats 12 | www.oriontradingworldwide.com National TV Local TV / TV Syndication HD TV Network TV Satellite TV Direct TV Dish Network 10 second IDs Network Radio Local Radio Satellite Radio Sirius XM Magazines National Regional Airport College Campus / School Sports / Fitness / Leisure Facilities Billboards Traditional Digital Mobile In-Store Movie / Theater Telephone Kiosks Transit Buses & Bus Shelters Trains Subway Trains / Station Dominations Taxis / Taxi TVs Street Furniture Full Agency Buying Competencies Sponsorships Rich Media Capabilities / Measurement Interaction Times Display Times Exit Links Targeting Geo Demo Behavioral / Contextual Time of Day Frequency Capping Country / Domain / IP / Zip Codes Interactive Outdoor Television Radio Magazines Sponsorships / Promotions Product Placement Online Global Event Management Travel Conferences Trade Shows Audio/Visual Services The ORION Advantage Overview Case Studies
  • Slide 14
  • Barter Example The Liquidation WayThe ORION Way 13 | www.oriontradingworldwide.com Inventory Sale Stock $1m credits NO LOSS $1m Book ValueLiquidation Price Inventory Sale Stock $700k loss on books $1m Book ValueLiquidation Price $300k Media Purchase d Cash flow savings = $1,000,000 $5m Planned Expenditure $4m Cash Outlay Media Spend with $1m credits $1m $4m Cash Benefit = $0 Media Purchase d $5m Planned Expenditure $5m Cash OutlayMedia Spend The ORION Advantage Overview Case Studies
  • Slide 15
  • The Liquidation Way The ORION Way 14 | www.oriontradingworldwide.com Barter Example Inventory Sale $1m credits NO LOSS $1m Book ValueLiquidation Price Inventory Sale $700k loss $1m Book ValueLiquidation Price $300k Media Purchase d Cash flow savings = $1mm $4m Cash Outlay Media Spend $1m $4m Cash Benefit = $0 Media Purchase d $5m Cash OutlayMedia Spend The ORION Advantage Overview Case Studies
  • Slide 16
  • Selected Category Expertise in Regulated Industries ORION Trading has extensive experience in a variety of categories. We adhere to all restrictive guidelines; including, but not limited to day, time, programming constraints and ratings guidelines. Industry examples include: Gaming & Entertainment Entertainment Software Rating Board (ESRB) strict adherence Packaged Goods Strong reach, high efficiencies Pharmaceuticals Medical, regulatory, and legal compliance Quick Serve Restaurants (QSR) Highly targeted image/brand campaigns, seamless integration of co-op media budgets Retail Focused targeting with high frequency, targeted towards high-qualitative demographic 15 | www.oriontradingworldwide.com Spirits Distilled Spirits Council of the United States (DISCUS) compliant, Legal Drinking Age (LDA) adherence to code of responsible practice Theatrical Placement restrictive to audience composition and program/ area compatibility reach, high efficiencies Travel Content approval on 100% of schedule, highly targeted The ORION Advantage Overview Case Studies
  • Slide 17
  • Fixing Deals from Other Barter Companies ORION Trading has extensive experience replacing barter transactions. Below clients had competitors trade credits on their books which they could not utilize for a variety of reasons. 16 | www.oriontradingworldwide.com Previously with ICON Previously with ACTIVE Previously with Other United States International The ORION Advantage Overview Case Studies
  • Slide 18
  • Domestic Airline Carrier: Saved $22.5 Million 17 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $124,366,301 placed of national TV, spot television, OOH, spot radio, UK press, interactive, Spanish language television, Latin American media Publicly traded company Super Bowl inventory secured Food Network: Next Iron Chef International product Integration and sponsorship In-Airport media: dominations, billboards Digital OOH billboards NYC Taxi Tops NCAA March Madness sponsorship Academy Awards sponsorship Chicago Cubs opening day mobile billboard campaign ORION Trading has met or exceeded expectations on all media campaigns: 2004 $2.8mm Natl TV 2005 $17.5mm Natl TV / Spot TV / OOH 2006 $32.6mm Natl TV / Spot TV / OOH / Spot Radio 2007 $29.9mm Natl TV / Spot TV / OOH / Spot Radio / UK Press 2008 $25.8mm Natl TV / Spot TV / OOH / Spot Radio / UK Press 1H 09 $15.1mm Natl TV / Spot TV / OOH / Spot Radio / UK Press / Interactive *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 19
  • Multinational Conglomerate: Saved $6 Million 18 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $30,526,137 placed of national magazine, spot television, OOH, spot radio, interactive Publicly traded company Subsidiary One NBA Post Season sponsorship ESPN Radio: Turning Point of the Game 24/7 sponsorship: Dial Global NCAA added value: Westwood One Subsidiary Two ESPN: Sponsorship on Starting Line Up Bonus pages: Car & Driver, Road & Track ESPN Deportes: integration with soccer, baseball playoffs and NBA ORION Trading has met or exceeded expectations on all media campaigns: 2005 $5.6mm Natl Magazine 2006 $4.9mm Natl Magazine / Spot TV / OOH 2007 $6.6mm Natl Magazine / Spot TV / OOH / Spot Radio 2008 $8.7mm Natl Magazine / Spot TV / OOH / Spot Radio / Interactive Q1 09 $4.7mm Natl Magazine / Spot TV / OOH / Spot Radio / Interactive *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 20
  • Furniture Manufacturer & Retailer: Saved $14.4 Million 19 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $68,464,552 placed of spot television, spot radio, OOH, interactive Privately held company 20% added value delivered Super Bowl inventory secured Sponsorship packages inclusive of: vignettes, billboards, and online elements ORION Trading has met or exceeded expectations on all media campaigns: 2007 $20.1mm Spot TV 2008 $39.1mm Spot TV / Spot Radio / OOH Q1 09 $12.5mm Spot TV / Spot Radio / OOH / Interactive *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 21
  • Premier Spirits Distributor: Saved $12.8 Million 20 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $64,401,221 placed of national TV, spot television, national magazine, OOH, interactive Publicly traded company Top 20 local markets Achieved goals or upgraded weight while purchasing A prime and sports Multiplatform national campaign Super Bowl inventory secured, GRP Index average 134% ORION Trading has met or exceeded expectations on all media campaigns: 2007 $18mm Natl TV 2008 $24.5mm Natl TV / Spot TV / Natl Magazine / OOH Q1 09 $21.9mm Natl TV / Spot TV / Natl Magazine / OOH / Interactive *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 22
  • Domestic Airline Carrier: Saved $22.5 Million 21 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $54,559,462 placed of spot tv, spot radio, OOH, guerilla marketing, national magazine, interactive Publicly traded company Store openings in all major markets (eg. taxi tops, bus shelters, wild postings, TV cars, billboards, guerilla marketing) Taxi TVs: adjacent banners to The Beatles Love and Tony Bennett campaigns Trade credits utilized with co-op vendors ORION Trading has met or exceeded expectations on all media campaigns: 1999 $3.3mm Spot TV 2000 $6.2mm Spot TV / Spot Radio / OOH 2001 $4.3mm Spot TV / Spot Radio / OOH 2002 $5.7mm Spot TV / Spot Radio / OOH 2003 $5.7mm Spot TV / Spot Radio / OOH / Guerilla Marketing 2004 $6.3mm Spot TV / Spot Radio / OOH / Guerilla Marketing / National Magazine 2005 $6.7mm Spot TV / Spot Radio / OOH / National Magazine 2006 $6.8mm Spot TV / Spot Radio / OOH / National Magazine 2007 $4.7mm Spot TV / Spot Radio / OOH / National Magazine / Interactive 2008 $3.6mm Spot TV / Spot Radio / OOH Q1 09 $1mm Spot TV / Spot Radio / OOH *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 23
  • Multinational CPG Company: Saved $11.5 Million 22 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $57,439,100 placed of national TV, spot television, OOH, spot radio, national magazine Publicly traded company ESPN: Multi-platform sponsorship, TV, print and online ESPNews sponsorship: logo incorporation, tagged tune-ins, billboards, in-show mentions Fresh Home magazine campaign Interactive branding campaigns: Jayski.com, ESPN.com, Nascar.com ORION Trading has met or exceeded expectations on all media campaigns: 2004 $11.4mm Natl TV 2005 $11.8mm Natl TV / Spot TV / OOH 2006 $6.6mm Natl TV / Spot TV / OOH 2007 $13.6mm Natl TV / Spot TV / Spot Radio / OOH 2008 $14mm Natl TV / Spot TV / Spot Radio / OOH / Natl Magazine *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 24
  • Leading Regional Apparel Retailer: Saved $7 Million 23 | www.oriontradingworldwide.com Background Media highlights Media performance snapshots ACCUMULATED SAVINGS ( $mm ) $35,406,398 placed of national TV, spot radio, interactive Privately held company (Bain Capital) TBS Integration: Movie & A Makeover, product placement. TV Land: High School Reunion product integration TLC sponsorship: Jon & Kate Plus 8 Support of corporate coat drive through multi- platform package inclusive of on-air, online, and public service announcements Super Bowl inventory secured ORION Trading has met or exceeded expectations on all media campaigns: 2007 $9.6mm Natl TV 2008 $17.4mm Natl TV / Spot Radio Q1 09 $4.5mm Natl TV / Spot Radio / Interactive *2009 inclusive through 1H The ORION Advantage Overview Case Studies
  • Slide 25
  • Thank you for the opportunity to share our program with you. Should you have any additional questions please feel free to contact us. Please visit us online: oriontradingworldwide.com oriontradingworldwide.com Contact Information 24 | www.oriontradingworldwide.com Brendon Walker Vice President, Sales 212.605.7039 brendan.walker @oriontradingww.com Brendon Walker Vice President, Sales 212.605.7039 brendan.walker @oriontradingww.com Jason Clancy Group Director, New Business Development 212.605.7009 jason.clancy @oriontradingww.com Jason Clancy Group Director, New Business Development 212.605.7009 jason.clancy @oriontradingww.com
  • Slide 26
  • Quality of Media Common Misconceptions 25 | www.oriontradingworldwide.com We review the clients media plan prior to entering into an agreement We say no when we cannot deliver at the same level of quality Contractual guidelines are agreed upon prior to the execution of the deal We work closely with agencies to maintain a seamless transaction We review the clients media plan prior to entering into an agreement We say no when we cannot deliver at the same level of quality Contractual guidelines are agreed upon prior to the execution of the deal We work closely with agencies to maintain a seamless transaction Trade Media pricing is not the same as cash buying We invoice for trade services at the exact rates agencies have negotiated on behalf of their clients Client may request an audit We invoice for trade services at the exact rates agencies have negotiated on behalf of their clients Client may request an audit Credits are worthless We only conduct barter deals to scale and with a planned home for credits We work with our client to ensure quick fulfillment of the credits Clients receive quality media We only conduct barter deals to scale and with a planned home for credits We work with our client to ensure quick fulfillment of the credits Clients receive quality media The ORION Advantage Overview Case Studies Trade Company Solvency ORION Trading is 100% owned by IPG Asset Mishandling We avoid trading for sensitive assets We enter into a contractual agreement on the remarketing restrictions We often have the client pre-sell assets for us We provide proof of receipt on the sale of the asset We avoid trading for sensitive assets We enter into a contractual agreement on the remarketing restrictions We often have the client pre-sell assets for us We provide proof of receipt on the sale of the asset Trade takes away agency revenue Agency gets commission on full buy Agency employees retain full control of the buy Agency gets commission on full buy Agency employees retain full control of the buy
  • Slide 27
  • [Client] Analysis and Case Study A partnership between 2004 through 2009e* with ORION Trading, would result in accumulated cash flow savings in excess of $340 million or approximately $57 million per annum.** On average, nearly 50% of AB-InBevs media spend can be applied to ORIONs most dominant media capabilities, identified as tradeable media.*** The above chart depicts AB-InBevs total tradeable media spend since 2004. A partnership with ORION Trading over this illustrated example would have enabled AB-InBev to have part- funded this $1.7bn expenditure with over $340mm in trade creditsresulting in an accumulated cash outlay of $1.4bn. 26 Estimate for 2009 has been projected with a multiple of 2 applied to media expenditures based on 1H 09. ** Analysis looks at all AB and InBev brands and businesses. *** Tradeable Media consists of: Cable TV, Syndicated TV, Spot TV, Spanish Language Natl TV, Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet Note: this slides content is UNLINKED
  • Slide 28
  • [Client] Analysis and Case Study A partnership between 2004 through 2009e* with ORION Trading, would result in accumulated cash flow savings in excess of $340 million or approximately $57 million per annum.** On average, nearly 50% of AB-InBevs media spend can be applied to ORIONs most dominant media capabilities, identified as tradeable media.*** The above chart depicts AB-InBevs total tradeable media spend since 2004. A partnership with ORION Trading over this illustrated example would have enabled AB-InBev to have part- funded this $1.7bn expenditure with over $340mm in trade creditsresulting in an accumulated cash outlay of $1.4bn. 27 Estimate for 2009 has been projected with a multiple of 2 applied to media expenditures based on 1H 09. ** Analysis looks at all AB and InBev brands and businesses. *** Tradeable Media consists of: Cable TV, Syndicated TV, Spot TV, Spanish Language Natl TV, Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet Data Summary Note: this slides content is LINKED