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Copyright ©2009 ORION Trading www.oriontradingworldwide.com

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Overview Case StudiesThe ORIONAdvantage

Clients


The ORIONAdvantageOverview Case

Studies

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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 serviceEstablished in 1996 as the first global major agency-owned barter agencySeamless agency integrationSarbanes 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


ORION Trading Introduction


Studies

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 serviceEstablished in 1996 as the first global major agency-owned barter agencySeamless agency integrationSarbanes 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


ORION Trading Introduction


Studies

ORION Trading’s Global FootprintWe know your core creative ideas, brand strategies, and how you buy.


IPG Network

Orion

181 offices in 119 countries

across the Globe


Studies

The ORION AdvantageORION 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 assetsIncrease cash flow as trade credits fund up to 20% of pre-budgeted advertising expensesPreserve advertising budgets and marketing strategiesMedia execution is based on client’s strategy and will meet or exceed expectationsClose collaboration with the client’s advertising agency



Studies

Step 1

The Barter Process


EvaluationReview client’s media plan (pricing, budgets, dayparts, demographics, etc.)Coordinate with both the client’s media team and advertising agency to identify those portions of the media plan that we can effectively deliver to the client’s 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 securitiesApprove resale procedures in accordance with client’s requirementsDraft and review the trade agreement

Step 3 FulfillmentThe client and their advertising agency will retain total control of the media plan and will continue to plan and cost all mediaApproval for the buy is authorized by client before media is purchasedBuys are executed to the client’s exact specificationsPost analysis delivered


Studies

Step 1

The Barter Process (alt 1)


EvaluationAdvertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from clientThe 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 detailsORION Trading confirm inventory is appropriate and issue contract to client

Step 3 FulfillmentClient return signed contract to ORION TradingInventory is received by ORION TradingThe media is then purchased by ORION Trading to the exact specifications set by the advertising agency/departmentTrade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised


Studies

Step 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8Step 9



Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client


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

Step 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8Step 9



Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client


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

The Mechanics of the Barter Process



Studies

[Company Name] AOR

Media Vendor

ORION

Asset Revenue Loss

Media Budget:Cash Outlay

$1mm$200k($800k)

$5mm$5mm

With Barter$1mm

$1mm TC – 0 –

$5mm$4mm

1. Plan – AOR2. Price – AOR3. Approve –

Client/AOR4. Post – ORION

Financing + Capital Assets = Leverage

R1: R2:

$4mm cash for media$200k cash from

asset

$1mm TC

$4.2mm

Television / Radio

Print / OOH

Interactive

International

Trade Credits Can be Utilized Across all Media Formats


• 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


Studies

Barter ExampleThe Liquidation Way The ORION Way


Inventory Sale Stock $1m credits

NO LOSS$1m

Book Value Liquidation PriceInventory Sale Stock $700k

loss on books$1m

Book Value Liquidation Price$300k

Media Purchase

d

Cash flow savings = $1,000,000

$5mPlanned

Expenditure $4m

Cash Outlay Media Spendwith $1m credits

$1m$4m

Cash Benefit = $0

MediaPurchase

d$5m

PlannedExpenditure $5m$5m

Cash Outlay Media Spend


Studies

The Liquidation Way

The ORION Way


Barter Example

Inventory Sale $1m credits

NO LOSS$1m

Book Value Liquidation PriceInventory Sale

$700k loss

$1m

Book Value Liquidation Price$300k

Media Purchase

d

Cash flow savings = $1mm

$4m

Cash Outlay Media Spend$1m

$4m

Cash Benefit = $0

MediaPurchase

d $5m$5m

Cash Outlay Media Spend


Studies

Selected Category Expertise in Regulated IndustriesORION 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 GoodsStrong 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

RetailFocused targeting with high frequency, targeted towards high-qualitative demographic


SpiritsDistilled Spirits Council of the United States (DISCUS) compliant, Legal Drinking Age (LDA) adherence to code of responsible practice

TheatricalPlacement restrictive to audience composition and program/area compatibility reach, high efficiencies

Travel Content approval on 100% of schedule, highly targeted


Studies

Fixing Deals from Other Barter CompaniesORION 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.


Previously with ICON Previously with ACTIVE Previously with Other

United States

International


Studies

Domestic Airline Carrier: Saved $22.5 Million


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 mediaPublicly traded company

Super Bowl inventory securedFood Network: Next Iron Chef International product Integration and sponsorshipIn-Airport media: dominations, billboardsDigital OOH billboardsNYC Taxi TopsNCAA March Madness sponsorshipAcademy Awards sponsorshipChicago Cubs opening day mobile billboard campaign

ORION Trading has met or exceeded expectations on all media campaigns:

2004 $2.8mm Nat’l TV2005 $17.5mm Nat’l TV / Spot TV / OOH2006 $32.6mm Nat’l TV / Spot TV / OOH / Spot Radio2007 $29.9mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press2008 $25.8mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press1H ‘09 $15.1mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press / Interactive

2005 2006 2007 2008 20090

1

2

3

4

5

6

7

*2009 inclusive through 1H


Studies

Multinational Conglomerate: Saved $6 Million


Background

Media highlights


ACCUMULATED SAVINGS ( $mm )$30,526,137 placed of national magazine, spot television, OOH, spot radio, interactivePublicly traded company

Subsidiary OneNBA Post Season sponsorshipESPN Radio: “Turning Point of the Game”24/7 sponsorship: Dial GlobalNCAA added value: Westwood One

Subsidiary TwoESPN: Sponsorship on Starting Line UpBonus pages: Car & Driver, Road & TrackESPN Deportes: integration with soccer, baseball playoffs and NBA


2005 $5.6mm Nat’l Magazine2006 $4.9mm Nat’l Magazine / Spot TV / OOH2007 $6.6mm Nat’l Magazine / Spot TV / OOH / Spot Radio2008 $8.7mm Nat’l Magazine / Spot TV / OOH / Spot Radio / InteractiveQ1 ‘09 $4.7mm Nat’l Magazine / Spot TV / OOH / Spot Radio / Interactive


2005 2006 2007 2008 20090

1

2

3

4

5

6

7


Studies

Furniture Manufacturer & Retailer: Saved $14.4 Million


Background

Media highlights


ACCUMULATED SAVINGS ( $mm )$68,464,552 placed of spot television, spot radio, OOH, interactivePrivately held company

20% added value deliveredSuper Bowl inventory securedSponsorship packages inclusive of: vignettes, billboards, and online elements


2007 $20.1mm Spot TV2008 $39.1mm Spot TV / Spot Radio / OOHQ1 ‘09 $12.5mm Spot TV / Spot Radio / OOH / Interactive


2007 2008 200902468

10121416


Studies

Premier Spirits Distributor: Saved $12.8 Million


Background

Media highlights


ACCUMULATED SAVINGS ( $mm )$64,401,221 placed of national TV, spot television, national magazine, OOH, interactivePublicly traded company

Top 20 local markets Achieved goals or upgraded weight while purchasing “A” prime and sportsMultiplatform national campaign Super Bowl inventory secured, GRP Index average 134%


2007 $18mm Nat’l TV2008 $24.5mm Nat’l TV / Spot TV / Nat’l Magazine / OOHQ1 ‘09 $21.9mm Nat’l TV / Spot TV / Nat’l Magazine / OOH / Interactive


2007 2008 20090

2

4

6

8

10

12

14


Studies

Domestic Airline Carrier: Saved $22.5 Million


Background

Media highlights


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 TV’s: adjacent banners to The Beatles Love and Tony Bennett campaignsTrade credits utilized with co-op vendors


1999 $3.3mm Spot TV2000 $6.2mm Spot TV / Spot Radio / OOH2001 $4.3mm Spot TV / Spot Radio / OOH2002 $5.7mm Spot TV / Spot Radio / OOH2003 $5.7mm Spot TV / Spot Radio / OOH /

Guerilla Marketing2004 $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 / OOHQ1 ‘09 $1mm Spot TV / Spot Radio / OOH


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

2

4

6

8

10

12


Studies

Multinational CPG Company: Saved $11.5 Million


Background

Media highlights


ACCUMULATED SAVINGS ( $mm )$57,439,100 placed of national TV, spot television, OOH, spot radio, national magazinePublicly traded company

ESPN: Multi-platform sponsorship, TV, print and onlineESPNews sponsorship: logo incorporation, tagged tune-ins, billboards, in-show mentionsFresh Home magazine campaignInteractive branding campaigns: Jayski.com, ESPN.com, Nascar.com


2004 $11.4mm Nat’l TV2005 $11.8mm Nat’l TV / Spot TV / OOH2006 $6.6mm Nat’l TV / Spot TV / OOH2007 $13.6mm Nat’l TV / Spot TV / Spot Radio / OOH2008 $14mm Nat’l TV / Spot TV / Spot Radio / OOH / Nat’l Magazine


2004 2005 2006 2007 20080

2

4

6

8

10

12


Studies

Leading Regional Apparel Retailer: Saved $7 Million


Background

Media highlights


ACCUMULATED SAVINGS ( $mm )$35,406,398 placed of national TV, spot radio, interactivePrivately held company (Bain Capital)

TBS Integration: Movie & A Makeover, product placement.TV Land: High School Reunion product integrationTLC sponsorship: Jon & Kate Plus 8Support of corporate coat drive through multi-platform package inclusive of on-air, online, and public service announcementsSuper Bowl inventory secured


2007 $9.6mm Nat’l TV2008 $17.4mm Nat’l TV / Spot RadioQ1 ‘09 $4.5mm Nat’l TV / Spot Radio / Interactive


2007 2008 20090

1

2

3

4

5

6

7

8


Studies

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

Contact Information


Brendon WalkerVice President, [email protected]

Jason Clancy Group Director, New Business Development212.605.7009jason.clancy @oriontradingww.com

http://oriontradingworldwide.com/

mailto:[email protected]




Quality of Media

Common Misconceptions


We review the client’s 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 dealWe work closely with agencies to maintain a seamless transactionTrade 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

Credits are worthlessWe only conduct barter deals to scale and with a planned home for creditsWe work with our client to ensure quick fulfillment of the creditsClients receive quality media


Studies

Trade Company Solvency ORION Trading is 100% owned by IPG

Asset Mishandling We avoid trading for “sensitive” assetsWe enter into a contractual agreement on the remarketing restrictionsWe often have the client pre-sell assets for usWe provide proof of receipt on the sale of the asset

Trade takes away agency revenue

Agency gets commission on full buyAgency employees retain full control of the buy


Year Total $(000) Non Tradeable Media $(000) Tradeable Media $(000)* Max Potential cash Flow Savings Through Trade $(000) Percentage of Tradeable Media2004 26,644$ 16,046$ 10,598$ 2,120$ 40%2005 42,950$ 27,708$ 15,242$ 3,048$ 35%2006 32,700$ 22,158$ 10,542$ 2,108$ 32%2007 26,874$ 19,355$ 7,520$ 1,504$ 28%2008 28,406$ 16,674$ 11,733$ 2,347$ 41%Total 157,574$ 101,940$ 55,634$ 11,127$

Total accumulated tradeable media:55,634$ Total accumulated potential cash flow savings11,127$ Tradeable accumulated spend through partnership:44,507$

* *

$16,046 $27,708

$22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008

Historical Spend Breakdown

Non Tradeable Media $(000) Tradeable Media $(000)*

Total accumulated potential cash flow savings:$11,127

Tradeable accumulated spend through partnership:$44,507

[Client] Analysis and Case StudyA 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-InBev’s media spend can be applied to ORION’s most dominant media capabilities, identified as “tradeable media”.***

The above chart depicts AB-InBev’s 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 credits—resulting in an accumulated cash outlay of $1.4bn.



* *

$16,046

$27,708 $22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008







* *

$16,046

$27,708 $22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008





• 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 Nat’l TV, Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet

Note: this slide’s content is UNLINKED

Jason.Clancy

this is a placeholder for the client specific analysis/case study - this will be a slide with a linked excel sheet where sales will input required data - and graphs will automatically populate




*

$16,046 $27,708

$22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008





[Client] Analysis and Case StudyA 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-InBev’s media spend can be applied to ORION’s most dominant media capabilities, identified as “tradeable media”.***

The above chart depicts AB-InBev’s 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 credits—resulting in an accumulated cash outlay of $1.4bn.

• 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 Nat’l TV, Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet



*

$16,046 $27,708

$22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008





Data SummaryYear Total $(000) Non Tradeable Media $(000) Tradeable Media $(000)* Max Potential cash Flow Savings Through Trade $(000) Percentage of Tradeable Media2004 26,644$ 16,046$ 10,598$ 2,120$ 40%2005 42,950$ 27,708$ 15,242$ 3,048$ 35%2006 32,700$ 22,158$ 10,542$ 2,108$ 32%2007 26,874$ 19,355$ 7,520$ 1,504$ 28%2008 28,406$ 16,674$ 11,733$ 2,347$ 41%Total 157,574$ 101,940$ 55,634$ 11,127$


*

$16,046 $27,708

$22,158 $19,355 $16,674

$10,598

$15,242

$10,542 $7,520 $11,733

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2004 2005 2006 2007 2008





Note: this slide’s content is LINKED

Jason.Clancy

this is a placeholder for the client specific analysis/case study - this will be a slide with a linked excel sheet where sales will input required data - and graphs will automatically populate

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