October

92011

BUSINESS DEVELOPMEN

T:FINANCIAL MANAGEMENT

2

Agency Plan

GrowthPlan

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Performance Management

Annual Plan

Internal Inputs

External Inputs

Growth Target ___%Existing Clients

___%New Business ___%

ResourcesDeliverService

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Top Down

Management Objectives

Growth Target %

History Industry ClientsNew

Business

Bottom Up

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Top Down

Management Objectives

Growth Target %

History Industry ClientsNew

Business

Bottom Up

Industry

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Publicly

Traded

Companies

Publications

Research

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Publicly Traded Companies

2010 Q2 YTD

Omnicom 6.4% 6.2%

IPG 7.0% 6.8%

WPP 5.3% 6.1%

Publicis Groupe 8.3% 7.1%

By Geography: Publicis, 2010 North America

+9.9%

By Segment: Publicis Digital Operations +13 – 14%, 2011 - 2013

Publications

Agency Report: U.S. Agency Revenue Jumped 7.7% in 2010

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9

Research

Ad Expenditures Internet

2011 2.5% 12.6%

2012 3.4% 15.6%

2013 3.2% 16.2%

Segment Detail: On-Line Video

+22.0% in 2011

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Attendee Survey

Decline Flat +1-5% +5-10% +10-15% +15+%0

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4

6

8

10

12

2011 Growth %

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Top Down

Management Objectives

Growth Target %

History Industry ClientsNew

Business

Bottom Up

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Existing Clients

Services Incumbent Estimated $ Action Plan Resources

On-Line Media Buying

Agency X $150,000 Meeting Q1 Media Dir 100, Media Buyer 60

Client: Left Brain Advisors

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Top Down

Management Objectives

Growth Target %

History Industry ClientsNew

Business

Bottom Up

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New Business Prospects

CategoryProspect(s

)Services

Estimated $

Status Resources

Financial Services

ABC BankDigital AOR

$500,000 Finals

Acc Mgt 200,CD 200,Developer 100

Retail ACMEDigital AOR

$500,000 RFP

Acct Mgt 150,Art Dir 125,Media Plan 75

Education U of A Website $100,000 Prospect TBD

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Growth Plan

Client/Project Revenue Timing ResourcesAccountabl

e

Existing Clients:

LBA – On-line Media

$150,000 Dec ’11

Media Dir 100, Media Buyer 60 Media Dir

New Business:

ABC Bank – Digital AOR

$500,000 Jan ’12

Acc Mgt 200,CD 200,Developer 100

New Biz Dir

Acme – Digital AOR

$250,000 June ’12

Acct Mgt 150,Art Dir 125,Media Plan 75 President

Total Growth Plan

$900,000

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Operating Plan Framework

Personnel + G&A Expenses in

Support of Base Revenue

Resources Required to Deliver Growth

Resources Required to Service Growth

Base Revenue(Existing

Assignments)

Incremental Revenue

(Growth Plan)

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Resources to Deliver Growth

Personnel:

Business Development ResourcesFunctional Staff FTE’sIncentives

G&A Expenses:

Promotion – Conferences, Travel, Website, Social MediaPitches – Research, Creative Development, TravelOngoing Management – CRM System

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Agency Plan

Base Plan Growth Target Plan

Revenue 6,000 900 6,900

Personnel Expense 4,000 450 4,450

G&A Expense 1,100 175 1,275

Operating Profit 900 275 1,175

Personnel Ratio 67% 50% 65%

Operating Margin 15% 30% 17%

Growth+15%

Conversion

Timing of Hires

Includes Staff Required to

Deliver Growth

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Staffing Plan

Client 1 Client 2 Client 3 New Biz Capacity

Account Director

Account Setup

Account Executive

Creative Director

Art Director

Copywriter

Etcetera

Estimated hours

required to deliver

growth plan

Potential availability to service

growth plan

Monthly and Quarterly Reporting

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Reporting Dashboard          Income Statement YTD          2011 2011 Variance     2011 Variance          Forecast YTD B/(W)   2010 YTD B/(W)Income Statement                                           Revenue       $8,100 $8,000 ($100)   $8,300 $8,000 ($300)  Growth vs PY                 (3.6%)

  Personnel Expense     5,700 5,650 50   5,750 5,650 100   Client Costs     150 145 5   165 145 20   G&A Expense     1,775 1,800 (25)   1,700 1,800 (100)                         Operating Profit     $475 $405 ($70)   $685 $405 ($280)                         Non-Operating     (175) (170) 5   (150) (170) (20)                         Net Profit       $300 $235 ($65)   $535 $235 ($300)                                              Ratios (% / Revenue)                      4A's                    Personnel 65.8%    70.4% 70.6% (0.2%)   69.3% 70.6% (1.3%)  Client 2.9%    1.9% 1.8% 0.1%   2.0% 1.8% 0.2%  G&A 19.4%    21.9% 22.5% (0.6%)   20.5% 22.5% (2.0%)  OP 11.9%    5.9% 5.1% (0.8%)   8.3% 5.1% (3.2%)  NI --     3.7% 2.9% (0.8%)   6.4% 2.9% (3.5%)                       

Utilization        2010

Department   Target 2009 Month   YTD             Account Service   85 71.4 61.0   80.1 Project Management   85 60.5 56.2   64.9 Creative   85 61.5 54.4   67.6 Interactive Services   85 59.7 78.0   77.8 Strategy   85 59.5 72.6   67.6 IT   -- 4.3 0.0   3.3 Operations   -- 6.2 7.3   9.8              Total     53.8 53.6   63.9              

Balance Sheet Figures        Change    Prior Current B/(W)Cash Balance $168 $200 $32          TWC   ($1,045) ($900) ($145)-% of Revenue (10%) (14%) (4%)         Trade A/R   $4,706 $5,000 ($294)-% Current   75% 78% 3%         WIP   $230 $300 ($70)-% of Revenue 2% 3% (1%)

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Reporting Dashboard

Growth Plan             

Client/Project   Revenue   Timing   Accountable             Existing Clients:                                                   New Business:                                                   Total Growth Plan                         

Staff Plan

    Client 1 Client 2 Client 3 New Biz Capacity

Account Dir            

Account Sup            

Account Exec            

             

Creative Dir            

Art Dir            

Copywriter            

             

Total Hours            

             

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Write down a number

and communicate it

Prioritize opportunities

Assign accountability

Match resources with revenues

External View