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Copyright ©2009 ORION Trading
www.oriontradingworldwide.com
1 | www.oriontradingworldwide.com
Agenda
Overview
The ORION
Advantage
Case Studies
Overview
2 | www.oriontradingworldwide.com
Clients
The ORION
Advantage
Case
Studies
Overview
3 | www.oriontradingworldwide.com
ORION Trading Introduction
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
The ORION
Advantage
Case
Studies
Overview
4 | www.oriontradingworldwide.com
ORION Trading Introduction
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
The ORION
Advantage
Case
Studies
Overview
5 | www.oriontradingworldwide.com
ORION Trading’s Global Footprint
We know your core creative ideas, brand strategies, and how you buy.
181 offices in
119 countries
across the Globe
Orion
IPG Network
The ORION
Advantage
Case
Studies
Overview
6 | www.oriontradingworldwide.com
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 client’s strategy and will meet or exceed expectations
Close collaboration with the client’s advertising agency
The ORION
Advantage
Case
Studies
Overview
7 | www.oriontradingworldwide.com
The Barter Process
Step 1
Evaluation
Review 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 securities
Approve resale procedures in accordance with client’s 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 client’s exact specifications
Post analysis delivered
The ORION
Advantage
Case
Studies
Overview
8 | www.oriontradingworldwide.com
The Barter Process (alt 1)
Step 1
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
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
The ORION
Advantage
Case
Studies
Overview
The ORION
Advantage
9 | www.oriontradingworldwide.com
The Barter Process (alt 2)
Step 1 Advertising agency/department plan, price and set quality of media schedule and obtain approval and sign off from client
Step 2 The plan is passed to ORION Trading BEFORE activity is confirmed with the media owner(s)
Step 3 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
Step 4 details
Step 5 ORION Trading confirm inventory is appropriate and issue contract to client
Step 6 Client return signed contract to ORION Trading
Step 7 Inventory is received by ORION Trading
Step 8 The media is then purchased by ORION Trading to the exact specifications set by the advertising agency/department
Step 9 Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are utilised
Case
Studies
Overview
10 | www.oriontradingworldwide.com
The Barter Process (alt 3)
Advertising agency/department plan, price and set quality of media schedule and obtain approval and
Step 1 sign off from client
Step 2 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
Step 3 plan
An inventory of appropriate size is identified by client and sent to ORION Trading along with any re-
Step 4 marketing restrictions and book value details
Step 5 ORION Trading confirm inventory is appropriate and issue contract to client
Step 6 Client return signed contract to ORION Trading
Step 7 Inventory is received by ORION Trading
The media is then purchased by ORION Trading to the exact specifications set by the advertising
Step 8 agency/department
Trade credit utilisation report (balance sheet) is issued to the client each month until all credits are
Step 9 utilised
The ORION
Advantage
Case
Studies
Overview
11 | www.oriontradingworldwide.com
The Mechanics of the Barter Process
[Company Name]
AOR
With Barter
Asset
Revenue
Loss
$1mm
$200k
($800k)
$1mm
$1mm TC
–0–
Media
Budget:
Cash Outlay
$5mm
$5mm
$5mm
$4mm
1.
2.
3.
4.
Plan – AOR
Price – AOR
Approve – Client/AOR
Post – ORION
$1mm
TC
Media Vendor
Financing + Capital Assets = Leverage
ORION
R1:
R2:
$4mm cash for media
$200k cash from asset
$4.2mm
The ORION
Advantage
Case
Studies
Overview
12 | www.oriontradingworldwide.com
Trade Credits Can be Utilized Across all Media
Formats
Television /
Radio
Print / OOH
•
•
•
•
•
National TV
Local TV / TV
Syndication
HD TV
Network TV
•
•
Magazines
– National
– Regional
Airport
College Campus / School
Sports / Fitness / Leisure Facilities
•
•
•
•
Interactive
International
•
•
•
•
Satellite TV
• Direct TV
• Dish Network
10 second IDs
•
•
•
Network Radio
Local Radio
Satellite Radio
•
Sirius
•
XM
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
Case
Studies
Overview
13 | www.oriontradingworldwide.com
Barter Example
The Liquidation Way
Inventory
Sale
Media
Purchase
d
Book Value
The ORION Way
Liquidation Price
$300k
Stock
$5m
Planned
Expenditure
$1m
$700k
loss on books
Cash Outlay
Media Spend
$5m
$5m
Cash Benefit = $0
Inventory
Sale
Media
Purchase
d
Book Value
Stock
$1m
Cash Outlay
$5m
Planned
Expenditure
Liquidation Price
$1m credits
NO LOSS
Media Spend
with $1m credits
$1m
$4m
$4m
Cash flow savings = $1,000,000
The ORION
Advantage
Case
Studies
Overview
14 | www.oriontradingworldwide.com
Barter Example
The ORION Way
Book Value
Inventory
Sale
Liquidation Price
$300k
Media
Purchase
d
$1m
$700k
loss
Cash Outlay
Media Spend
$5m
$5m
Inventory
Sale
Book Value
$1m
Media
Purchase
d
Cash Outlay
Liquidation Price
$1m credits
NO LOSS
Media Spend
$1m
$4m
$4m
The Liquidation Way
Cash Benefit = $0
Cash flow savings = $1mm
The ORION
Advantage
Case
Studies
Overview
The ORION
Advantage
15 | www.oriontradingworldwide.com
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
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
Case
Studies
Overview
16 | www.oriontradingworldwide.com
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.
Previously with ICON
Previously with ACTIVE
United States
International
Previously with Other
The ORION
Advantage
Case
Studies
Overview
17 | www.oriontradingworldwide.com
Domestic Airline Carrier: Saved $22.5 Million
ACCUMULATED SAVINGS ( $mm )
Background
Media
highlights
Media
performance
snapshots
$124,366,301 placed of national TV, spot
television, OOH, spot radio, UK press,
interactive, Spanish language television, Latin
American media
7
Publicly traded company
5
6
4
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
3
2
1
0
2005
2006
2007
2008
2009
ORION Trading has met or exceeded expectations on all media campaigns:
2004
2005
2006
2007
2008
1H ‘09
$2.8mm Nat’l TV
$17.5mm Nat’l TV / Spot TV / OOH
$32.6mm Nat’l TV / Spot TV / OOH / Spot Radio
$29.9mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press
$25.8mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press
$15.1mm Nat’l TV / Spot TV / OOH / Spot Radio / UK Press / Interactive
*2009 inclusive through 1H
The ORION
Advantage
Case
Studies
Overview
18 | www.oriontradingworldwide.com
Multinational Conglomerate: Saved $6 Million
ACCUMULATED SAVINGS ( $mm )
Background
$30,526,137 placed of national magazine, spot
television, OOH, spot radio, interactive
Publicly traded company
7
6
5
Media
highlights
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
4
3
2
1
0
2005
Media
performance
snapshots
2006
2007
2008
2009
ORION Trading has met or exceeded expectations on all media campaigns:
2005
2006
2007
2008
Q1 ‘09
$5.6mm Nat’l Magazine
$4.9mm Nat’l Magazine / Spot TV / OOH
$6.6mm Nat’l Magazine / Spot TV / OOH / Spot Radio
$8.7mm Nat’l Magazine / Spot TV / OOH / Spot Radio / Interactive
$4.7mm Nat’l Magazine / Spot TV / OOH / Spot Radio / Interactive
*2009 inclusive through 1H
The ORION
Advantage
Case
Studies
Overview
19 | www.oriontradingworldwide.com
Furniture Manufacturer & Retailer: Saved $14.4
Million
ACCUMULATED SAVINGS ( $mm )
Background
$68,464,552 placed of spot television,
spot radio, OOH, interactive
16
Privately held company
12
14
10
8
Media
highlights
20% added value delivered
Super Bowl inventory secured
Sponsorship packages inclusive of: vignettes,
billboards, and online elements
6
4
2
0
2007
Media
performance
snapshots
2008
2009
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
Case
Studies
Overview
20 | www.oriontradingworldwide.com
Premier Spirits Distributor: Saved $12.8 Million
ACCUMULATED SAVINGS ( $mm )
14
Background
$64,401,221 placed of national TV,
spot television, national magazine,
OOH, interactive
12
Publicly traded company
10
8
Media
highlights
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%
6
4
2
0
2007
Media
performance
snapshots
2008
2009
ORION Trading has met or exceeded expectations on all media campaigns:
2007
$18mm Nat’l TV
2008 $24.5mm Nat’l TV / Spot TV / Nat’l Magazine / OOH
Q1 ‘09 $21.9mm Nat’l TV / Spot TV / Nat’l Magazine / OOH / Interactive
*2009 inclusive through 1H
The ORION
Advantage
Case
Studies
Overview
21 | www.oriontradingworldwide.com
Domestic Airline Carrier: Saved $22.5 Million
12
Background
$54,559,462 placed of spot tv, spot radio,
OOH, guerilla marketing, national magazine,
interactive
Publicly traded company
ACCUMULATED SAVINGS ( $mm )
10
8
6
Media
highlights
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 campaigns
Trade credits utilized with co-op vendors
4
2
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Media
performance
snapshots
ORION Trading has met or exceeded expectations on all media campaigns:
1999
2000
2001
2002
2003
$3.3mm Spot TV
$6.2mm Spot TV / Spot Radio / OOH
$4.3mm Spot TV / Spot Radio / OOH
$5.7mm Spot TV / Spot Radio / OOH
$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
Case
Studies
Overview
22 | www.oriontradingworldwide.com
Multinational CPG Company: Saved $11.5 Million
ACCUMULATED SAVINGS ( $mm )
12
Background
$57,439,100 placed of national TV, spot
television, OOH, spot radio, national magazine
10
Publicly traded company
8
Media
highlights
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
6
4
2
0
2004
Media
performance
snapshots
2005
2006
2007
2008
ORION Trading has met or exceeded expectations on all media campaigns:
2004 $11.4mm Nat’l TV
2005 $11.8mm Nat’l TV / Spot TV / OOH
2006 $6.6mm Nat’l TV / Spot TV / OOH
2007 $13.6mm Nat’l TV / Spot TV / Spot Radio / OOH
2008 $14mm Nat’l TV / Spot TV / Spot Radio / OOH / Nat’l Magazine
*2009 inclusive through 1H
The ORION
Advantage
Case
Studies
Overview
23 | www.oriontradingworldwide.com
Leading Regional Apparel Retailer: Saved $7 Million
ACCUMULATED SAVINGS ( $mm )
8
Background
$35,406,398 placed of national TV, spot radio,
interactive
7
Privately held company (Bain Capital)
6
5
Media
highlights
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 multiplatform package inclusive of on-air, online, and
public service announcements
Super Bowl inventory secured
4
3
2
1
0
2007
Media
performance
snapshots
2008
2009
ORION Trading has met or exceeded expectations on all media campaigns:
2007 $9.6mm Nat’l TV
2008 $17.4mm Nat’l TV / Spot Radio
Q1 ‘09 $4.5mm Nat’l TV / Spot Radio / Interactive
*2009 inclusive through 1H
The ORION
Advantage
Case
Studies
24 | www.oriontradingworldwide.com
Contact Information
Thank you for the opportunity to share our program with you.
Should you have any additional questions please feel free to contact us.
Brendon Walker
Jason Clancy
Vice President,
Sales
Group Director,
New Business Development
212.605.7039
212.605.7009
brendan.walker
@oriontradingww.com
jason.clancy
@oriontradingww.com
Please visit us online:
oriontradingworldwide.com
Overview
25 | www.oriontradingworldwide.com
Common Misconceptions
Quality of Media
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
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
Trade Company Solvency
ORION Trading is 100% owned by IPG
Credits are worthless
We only conduct barter deals to scale and with a planned home for
credits
Client may request an audit
We work with our client to ensure quick fulfillment of the credits
Clients receive quality media
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
Trade takes away agency
revenue
Agency gets commission on full buy
Agency employees retain full control of the buy
The ORION
Advantage
Case
Studies
Note: this slide’s content is UNLINKED
26
Ye ar Tot al $( 000) Non Trade able Me dia $( 000)
Trade able Me dia $( 000) *
Max Pot e nt ial cash Flow Savings Through Trade $( 000)
Pe rce nt age of Trade able Me dia
2004 $
26,644 $
16,046 $
10,598 $
2,120
40%
2005
$ al $(
42,950
$ Trade able Me dia $( 000)
27,708 Trade
$ able Me dia $( 000)
15,242
$ Pot e nt ial cash Flow Savings Through Trade $( 000) 3,048Pe rce nt age of Trade able Me dia 35%
Ye ar Tot
000) Non
*
Max
2006 $
32,700 $
22,158 $
10,542 $
2,108
32%
2004
$
26,644
$
16,046
$
10,598
$
2,120
40%
2007 $
26,874 $
19,355 $
7,520 $
1,504
28%
2005 $
42,950 $
27,708 $
15,242 $
3,048 2004 through 2009e* with 35%
A partnership between
2008 $
28,406 $
16,674 $
11,733 $
2,347
41%
2006 $
32,700 $
22,158 $
10,542 $
2,108 result in accumulated
32%
ORION
Trading,
would
Tot al $ 157,574
101,94 0
$
11,127
$ Non26,874
$$ $(000) Tradeable Media $(000)*
19,355
$$ cash Flow Savings Through 55,634
7,520
28%
Year2007
Total $(000)
Tradeable Media
Max Potential
Trade
$(000) $ Percentage of Tradeable Media
cash flow savings1,504
in excess of $340 million or
2008
$
28,406
$
16,674
$
11,733
$
2,347
41%
2004 $ ed
26,644
10,598 $
2,120
40%
Tot al accumulat
t radeable
$ $ 55,634
media: 16,046 $
approximately $57
million per annum.**
$ 157,574
$ 27,708 $
101,94
55,634 3,048
$
11,127
2005Tot
$ al
42,950
$ 11,127
15,242 $ 0 $
35%
Tot al accumulat
ed
pot
$ ent
ial cash flow savings
2006
$
32,700
$
22,158
$
10,542
$
2,108
32%
Tradeable accumulat$ed spend
44,507
t hrough part nership:
On average, nearly 50% of AB-InBev’s media
Tot al accumulat
t radeable
$ $ 55,634
media: 19,355 $
2007 $ ed26,874
7,520 $
1,504
28%
spend can be applied to ORION’s most dominant
Tot al accumulat
ed
pot
$
ent
11,127
ial
cash
flow
savings
2008 $ 28,406 $
16,674 $
11,733 $
2,347
41%
media capabilities, identified as “tradeable
Tradeable accumulat$ed spend
44,507
t hrough part nership:
[Client] Analysis and Case Study
Total $ 157,574 $
101,940 $
55,634 $
11,127
Historical Spend Breakdown
Total
accumulated tradeable
$ 55,634
media:
$50,000
Total accumulated potential
$ 11,127
cash flow savings
$45,000
Tradeable accumulated
$ spend
44,507through partnership:
media”.***
Historical Spend Breakdown
Total
accumulated
potential cash
flow savings:
Total
$11,127
accumulated
potential cash
flow savings:
$50,000
$40,000
$15,242
$45,000
$35,000
Historical Spend Breakdown
$40,000
$30,000
*
$10,000
$7,520
$10,598
$20,000
$30,000
$45,000
$15,000
$25,000
$40,000
$10,000
$20,000
$35,000
$5,000
$15,000
$30,000
$$10,000
$25,000
$5,000
$20,000
$$15,000
$10,542
$15,242
$35,000
$25,000
$50,000
$10,542
$27,708
$22,158
$10,598
$15,242
$16,046
2005
$10,598
$22,158
$7,520
Non Tradeable Media $(000)
2004
$27,708
2005
$22,158
$16,046
$11,733
Tradeable Media $(000)*
2006
$19,355
Non Tradeable Media $(000)
$19,355
2006
Tradeable
$16,674 Media $(000)*
2007
Tradeable
accumulated
2007spend through
partnership:
Tradeable
accumulated
spend through
partnership:
$44,507
Tradeable
accumulated
spend through
partnership:
Total
accumulated
potential cash $11,733
flow savings:
$11,127
$27,708
$10,542
$16,046
2004
$7,520
$19,355
$11,127
$11,733
$16,674
$44,507
$16,674
2008
2008
$44,507
$5,000
*
$2004
*
•Estimate for 2009 has been projected with a multiple of 2 applied to media expenditures based on 1H ‘09.
2006
2007
2008
** 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,
Non Tradeable Media $(000)
Tradeable Media $(000)*
Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet
2005
*
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 partfunded this $1.7bn expenditure with over
$340mm in trade credits—resulting in an
accumulated cash outlay of $1.4bn.
*
*
Note: this slide’s content is LINKED
27
Ye ar Tot al $( 000) Non Trade able Me dia $( 000) Trade able Me dia $( 000) *
Max Pot e nt ial cash Flow Savings Through Trade $( 000)
Pe rce nt age of Trade able Me dia
2004 $
26,644 $
16,046 $
10,598 $
2,120
40%
2005 $
42,950 $
27,708 $
15,242 $
3,048
35%
2006
$ al $(
32,700
$ Trade able Me dia $( 000)
22,158 Trade
$ able Me dia $( 000)
10,542
$ Pot e nt ial cash Flow Savings Through Trade $( 000) 2,108
Ye
ar Tot
000) Non
*
Max
Pe rce nt age of Trade able Me dia 32%
2007 $$ 26,644
26,874 $$
19,355 $ $
7,520 $ $
1,504
2004
16,046
10,598
2,120
40%28%
A partnership between
2008 $$ 42,950
28,406 $$
16,674 $ $
11,733 $ $
2,3472004 through 2009e* with35%41%
2005
27,708
15,242
3,048
ORION Trading, 2,108
would
Tot al $$ 157,574
0 $$
55,634 $ $
11,127 result in accumulated
2006
32,700 $$
22,158
10,542
32%
Data101,94
Summary
cash
flow
savings
in excess of $340 million or 28%
2007
$
26,874
$
19,355
$
7,520
$
1,504
Year Total $(000) Non Tradeable Media $(000) Tradeable Media $(000)* Max Potential cash Flow Savings Through Trade $(000)
Percentage of Tradeable Media
Tot al accumulat
ed t radeable
$
55,634
media:
16,674
$
11,733 2,120
$
2,347
41%
approximately $57
million per annum.**
2004 2008
$ 26,644$ $ 28,406 $ 16,046 $
10,598
$
40%
Tot al accumulat
ed pot
$ ent11,127
ial cash flow savings
101,94
55,634 3,048$
11,127
2005Tot
$ al42,950$ $157,574 $ 27,708 $
15,242
$ 0 $
35%
Tradeable accumulat$ed spend
44,507
t hrough part nership:
On average, nearly 50% of AB-InBev’s media
2006 $ 32,700 $
22,158 $
10,542 $
2,108
32%
Tot al accumulat
ed
t
radeable
$
55,634
media:
spend can be applied to ORION’s most dominant
2007 $ 26,874 $
19,355 $
7,520 $
1,504
28%
Tot al accumulat ed pot
ial cash flow savings
2008 $ 28,406$ ent
$ 11,127
16,674 $
11,733 $
2,347
41%
media capabilities, identified as “tradeable
Tradeable accumulat$ed spend
44,507
t hrough part nership:
Total $ 157,574 $
101,940 $
55,634 $
11,127
media”.***
[Client] Analysis and Case Study
Historical Spend Breakdown
Total$50,000
accumulated tradeable
$ 55,634
media:
Total$45,000
accumulated potential
$ 11,127
cash flow savings
Tradeable accumulated
$ spend
44,507through partnership:
Historical Spend Breakdown
Total
accumulated
potential cash
flow savings:
Total
$11,127
accumulated
potential cash
flow savings:
$40,000
$50,000
$15,242
$35,000
$45,000
Historical Spend Breakdown
$30,000
$40,000
$10,542
$25,000
$15,000
$40,000
$10,598
$15,242
$16,046
$20,000
$10,000
$35,000
$15,000
$5,000
$30,000
*
$10,000
$27,708
$22,158
$27,708
$10,542
$10,000
$25,000 $-
$15,000
$7,520
$10,598
$30,000
$20,000
$45,000
$5,000
$20,000
$10,542
$15,242
$35,000
$25,000
$50,000
$16,046
$10,598
2004
2005
$22,158
$7,520
Non Tradeable Media $(000)
$2004
$27,708
2005
$22,158
$16,046
Non Tradeable Media $(000)
$19,355
$11,733
2006
Tradeable Media $(000)*
2006
$19,355
$7,520
$19,355
$16,674
Tradeable Media $(000)*
2007
Tradeable
accumulated
spend through
2007
partnership:
Total
accumulated
potential cash
flow savings:
$11,127
$11,733
$16,674
$16,674
2008
$44,507
$2004
*
•Estimate
for 20092007
has been projected
2006
2008 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,
Non Tradeable Media $(000)
Tradeable Media $(000)*
Spanish Language Spot TV, Network Radio, Spot Radio, OOH, Internet
2005
Tradeable
accumulated
spend through
partnership:
Tradeable
$44,507
accumulated
spend through
partnership:
$44,507
2008
$5,000
*
$11,127
$11,733
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 partfunded this $1.7bn expenditure with over
$340mm in trade credits—resulting in an
accumulated cash outlay of $1.4bn.