Table of Contents
Delivering The Blueprint For Growth
Forward-Looking And Cautionary Statements
Non-GAAP Financial Measures
PPT Slide
We Are Intensely Focused On Achieving Our Aspiration
Our Blueprint For Growth Is The Roadmap To Our Aspiration
Our Brand, Flexible Business Model, And Winning Culture Form A Powerful Competitive Advantage
Our Brand Stands For Confidence: Our Customers Rely On D&B For Critical Business Decisions
This Confidence Is Founded On The World’s Largest And Highest Quality Commercial Database
We Achieve Data Quality Through Our Process Called DUNSRightTM Which Consists Of Quality Assurance Plus Five Quality Drivers
During The First Quality Driver – Global Data Collection – We Bring Together Data From A Variety Of Sources Worldwide…
…Then We Integrate The Data Into The D&B Database Through Our Patented Entity Matching
Next We Apply The D-U-N-S® Number As A Unique Means Of Identifying And Tracking The Business Globally
The D-U-N-S® Number Also Enables Corporate Linkage To Provide A View Of Total Corporate Risk And Opportunity
Finally, Predictive Indicators Use Statistical Analysis To Indicate Likelihood Of A Business To Perform In A Specific Way In The Future
The Quality Of Our Data And Strength Of Our Brand Ensure That Customers Can Feel “D&B Sure” About Their Decisions
Our Flexible Business Model Is Another Source Of Our Competitive Advantage
We View Almost Every Dollar That We Spend As Flexible, And Continually Reallocate Our Spending To Maximize Shareholder Value
Through A Structured Process, We Continually Seek Ways To Improve Our Performance In Terms Of Quality And Cost
Finally, Our Culture – Focused On Creating Value For Customers And Shareholders – Has Become A Competitive Advantage In Itself
Our Brand, Flexible Business Model, And Winning Culture – Competitive Advantages That Will Help Us Achieve Our Aspiration
By Leveraging These Competitive Advantages, We Will Drive Revenue In Our Current Business And E-Business
We Have Four Customer Solution Sets
We Believe Each Of Our Solution Sets Will Contribute To Our Growth, Enabling Us To Achieve Our Aspiration
We Have Significant Opportunities For Growth Because Of The Strength Of Our Customer Value Propositions
Our Risk Management Solutions Help Customers Manage Credit Exposure And Cash
There Is Potential To Grow Our $880M Risk Management Solutions Business
Today, Businesses Use Our Traditional Products Primarily To Make Large Credit Decisions On New Customers…
…However Revenue From Our Business Information Report Is Continuing To Decline
To Increase Risk Management Solutions Revenue We Are Taking Actions To Mitigate The BIR Decline…
…And We Are Continuing To Invest In Our Value-Added Risk Management Solutions, Which Grew 4% In 2002
Why? Because In Today’s Business Environment, Our Value-Added Solutions Have Become Increasingly Relevant
Our Value-Added Solutions Help Businesses Increase Their Profitability And Cash Flow While Mitigating Risk
Without D&B, Businesses Find It Difficult To Know If Their Customers Are Part of The Same Corporate Family
In This Example, A Business May Assume That Its Risk Exposure To Any One Customer Is Limited to $500K
Our Risk Management Solutions Use Our Unique Corporate Linkage Capability To Reveal How Companies Are Linked...
...Uncovering That The Complete Risk Exposure To The Corporate Family Is $1.5M, Not $500K…
…And Identifying Additional Risk From A Financially Stressed Company Within The Same Family
In Addition To Understanding Total Exposure, Businesses Use Our Predictive Scores To Understand The Likelihood Of Future Risk
Predictive Scores Can Be Applied Quickly And Easily To An Entire Global Customer Portfolio...
...Revealing High-Risk Companies Upon Which Businesses Can Take Action
Using Our Risk Management Solutions To Manage A Portfolio Is More Efficient Than The Manual Review Of Accounts
With Our Value-Added Solutions, Businesses Can More Efficiently Manage Risk On A Growing Number of Small Transactions
For Example, New Small Business Lending Decisions Are Primarily Made Based On Consumer Information On The Owner
Our SBRI Solution Provides More Complete Information Including Outstanding Financial Obligations Of The Business Itself…
…And Information On How Well A Small Business Is Paying On These Outstanding Financial Obligations
SBRI Gives A More Complete Picture Of The Risk Of A Small Business Which Can Impact The Lending Decision
Only With Our Unique Combination Of Capabilities Can Financial Institutions Make Confident Decisions On New Small Business Loans
Businesses Can Also Improve Their Cash Flow Through Better Accounts Receivable Management Across The Entire Portfolio
By Focusing On Selling eRAM, We Have A Great Opportunity To Penetrate The $1 Billion+ Portfolio Management Market
By Mitigating Decline In The BIR And Investing In Our Value-Added Products, We Expect Risk Management Solutions Growth To Accelerate
Our Sales & Marketing Solutions Help Businesses Find Profitable Customers And Grow
There Is Potential To Grow Our $360M Sales & Marketing Solutions Business
Businesses Seek To Grow By Acquiring New Customers And Growing Existing Customers
Businesses Seek To Focus Their Sales And Marketing Efforts Based On Customer Segments
They Tailor Sales And Marketing Resources And Programs To These Customer Segments
Today, Businesses Use Our Prospecting Solutions to Acquire New Customers…
…And They Use Our Customer Information Management Solutions To Grow The Value Of Existing Customers
Sales & Marketing Solutions Grew 7% in 2002 Then Slowed Considerably, Primarily Due To Weakness In The “Acquire New Customers” Space
We Are Remaining Aggressive On All Fronts
We Will Continue Our Aggressive Investment In And Promotion Of New Products
We Are Continuing To Invest In Web Products And Additional Decision Maker Names For These Segments…
…And Enhancing Our Position Within These Segments With New Web Products
Our Customer Value Proposition Is Compelling: Companies That Use Our Sales & Marketing Solutions Grow At A Rate 40-50%* Higher Than Those That Do Not
Without D&B, Companies Typically Identify Their Best Customers Based On The Assumption That They Are Each Separate And Unrelated
Our Corporate Linkage Capability Reveals Previously Unseen Relationships So Our Customers Know Who Their Best Clients Are
Corporate Linkage Also Reveals The Entire Corporate Family For Our Customers’ Clients, Exposing Significant New Growth Opportunities
Once Our Customers Have Identified Their Best Clients, We Help Them Identify New Potential High-Growth Clients
We Do This By Building A Profile Of Our Customers’ Best Clients, Combining Their Information With Our Own Proprietary Data…
…Then Applying The Profile Of The Best Client Across 80 Million Businesses…
…Thus Targeting Only Those Businesses With High Revenue Potential
In Summary, Our Sales & Marketing Solutions Are Well Positioned For Growth
By Leveraging Our Customer Information Management Solutions, We Expect Sales & Marketing To Become A $500M Business
Our Supply Management Solutions Help Customers Manage Suppliers Effectively And Save Money
There Is Potential To Grow Our Supply Management Solutions Because We Help Companies Save 3–8% On Company Purchases*
Without D&B, Companies Typically Identify Only 60% Of Global Spend From Their Accounts Payable And General Ledger Systems
We Have A Proven Method Of Identifying 100% Of Their Spend Across All Of Their Data Sources
Identifying 100% Of Spend Uncovers Surprising Inefficiencies Such As An Individual Company Represented by Multiple Names…
…And Immediately Reduces Number Of Perceived Individual Suppliers So Companies Can Identify Increased Negotiating Leverage
We Then Identify Further Opportunities For Savings By Applying Our D-U-N-S® Number And Corporate Linkage To Apparently Unrelated Suppliers...
...Revealing Suppliers That Are Part Of A Single Corporate Family
So Companies Can Negotiate With Cendant Corp. Based On Total Corporate Spend Of $146M Versus The Individual Company Spend Of $55K
We Can Even Tell Companies Whether A Supplier Is Currently A Customer Of Theirs...
...And Whether They Spend More With The Customer Or Vice-Versa – Information That Directly Affects Negotiating Leverage
We Also Identify Opportunities For Increased Leverage By Understanding How Many Suppliers A Company Is Purchasing From Within A Spend Category
We Can Further Increase Negotiating Leverage By Knowing What Else A Company Can Purchase From Its Approved Suppliers
As A Company Increases Leverage With Fewer Approved Suppliers, We Help Mitigate The Inherent Risks
We Have A Proven Solution That Can Generate Significant Savings And Pays For Itself Within The First Year…
...And Our Solution Continues To Deliver Savings Year Over Year By Repeating The Same Steps
By Embedding In Our Customers’ Processes, We Expect To Grow Our Supply Management Solutions From $38M In 2002 To A $100M Business
E-Business Solutions, Which Includes DNB.com, Small Business And Hoover’s, Is An Integral Part Of Our Blueprint Strategy
Revenue Growth In Today’s Environment Is Challenging Because Of Longer Sales Cycles And Lower Close Rates
Hoover’s Helps Customers Convert Prospects To Clients Faster By Providing Insight To Shorten Sales Cycles And Increase Close Rates
Without Hoover’s, Gaining Insight On Prospects Requires Significant Time And Resources
Hoover’s Business Information Experts Provide Unique Insight By Describing The Prospect’s Key Business Priorities...
…The Prospect’s Key Competitors And Their Business Performance...
…And The Prospect’s Industry Trends
In Addition, Hoover’s Extensive List Of Executives Helps Customers Quickly Find Senior Level Decision Makers…
…And Detailed Biographies Help Build Stronger Relationships With Them
Sales Productivity Tools Save Time And Resources By Providing The Right Information At The Right Time
By Building On Hoover’s Subscription Model, We Believe E-Business Solutions Can Become A $100M Business For D&B
In Summary, Here Is How Each Of Our Solution Sets Will Contribute To Our Growth
We Are Delivering The Blueprint For Growth
We Are Delivering Shareholder Value During Our Transformation
We Believe That Each Of Our Customer Solutions Sets Will Drive Future Growth…
…Which Will Enable Us To Achieve Our Aspiration To Become A Growth Company
We Expect To Continue To Make Good Progress As We Transform D&B
PPT Slide
PPT Slide
Reconciliation Of Non-GAAP To GAAP Measures
Reconciliation Of Non-GAAP To GAAP Measures
Reconciliation Of Non-GAAP To GAAP Measures
Supplement: Small Business Solutions Value Proposition
Since 1995, There Has Been A Steady Increase In The Number Of Annual Small Business Closures
PPT Slide
Access To Quality Business Information Helps Small Businesses Ensure Success, But Finding It Can Be Time-Consuming And Costly
With Our Solutions, Small Businesses Can Easily Access High-Quality Information To Profitably Grow And Protect Their Business
We Enable Small Businesses To Create Targeted Lists Of Potential New Customers To Profitably Grow Their Business
Small Businesses Can Assess Their Customers’ Ability To Pay With Our Quick And Easy-To-Understand Risk Assessment Tools
We Can Also Help Small Businesses Collect Past Due Receivables, So They Can Protect Their Cash Flow
PPT Slide
A Small Businesses’ Own Credit Record Is One Of Their Most Important Assets – It Is The Basis For Crucial Decisions Driving Success Or Failure
With Our Solutions, Small Businesses Can Monitor Their Own Credit Record And Take Action If Necessary
Small Business Solutions Are Tailored To Provide Small Businesses With Information They Need To Profitably Grow And Protect Themselves
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