Delivering the blueprint for growth
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Delivering the blueprint for growth

Delivering The Blueprint For Growth

July 20, 2004


Forward looking and cautionary statements

This presentation contains projections of future results and other forward-looking statements that involve a number of trends, risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following important factors could cause actual results to differ materially from those projected in such forward-looking statements.

Demand for D&B’s products is subject to intense competition, changes in customer preferences and, to a lesser extent, economic conditions which impact customer behavior. The Company’s results are also dependent upon its continued ability to: reallocate expenses to invest for growth through its financial flexibility program; invest in its database and maintain its reputation for providing reliable data; execute on its plan to improve the business model of its International segment and thereby improve its global data quality while realizing improved financial performance in that segment; rely on its customers’ belief in the value of the DUNSRight™ quality process as a key driver of revenue growth; manage employee satisfaction and maintain its global expertise as it implements its financial flexibility program; protect against damage or interruptions affecting its database or its data centers; develop new products or enhance existing ones to meet customer needs.

The Company is also subject to the effects of foreign economies, exchange rate fluctuations and U.S. and foreign legislative or regulatory requirements. Its results are also dependent upon the availability of data from its database and the ability of its strategic partners to fulfill their contractual obligations to satisfy the Company’s customers and promote and protect the D&B brand. In addition, the Company’s ability to repurchase shares is subject to market conditions, including trading volume in the Company’s stock. Developments in any of these areas could cause actual results to differ materially from those that have been or may be projected.

In addition, the Company’s projection for free cash flow in 2004 is dependent upon the Company’s ability to generate revenue, the Company’s collection processes, customer payment patterns and the amount and timing of payments related to tax matters and legal proceedings involving the Company as more fully described in the Company’s 2004 1st Quarter Form 10-Q.

For a more detailed discussion of the trends, risks and uncertainties that may affect D&B’s operating and financial results and its ability to achieve the financial objectives discussed in this presentation, readers should review the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003, including the section entitled “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”),” and the subsection entitled “Trends, Risks and Uncertainties” in the MD&A. Copies of the Company’s Annual Report on Form 10-K and 2004 1st Quarter Form 10-Q are available on its web site at www.dnb.com and on the SEC’s web site at www.sec.gov. D&B cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements.

Forward-Looking and Cautionary Statements


Non gaap financial measures

This presentation contains certain non-GAAP financial measures, including core revenue before the effect of foreign exchange, organic core revenue growth, operating income and diluted earnings per share before non-core gains and charges, and free cash flow.

 We define core revenue as total revenue less the revenue of divested businesses. We analyze core revenue growth before the effect of foreign exchange. We also separate and analyze core revenue growth before the effect of foreign exchange among two components, organic core revenue growth and core revenue growth from acquisitions. We define non-core gains and charges as restructuring charges (whether recurring or non-recurring) and certain other items we consider do not reflect our underlying business performance. We define free cash flow as net cash provided by operating activities minus capital expenditures and additions to computer software and other intangibles. We believe these measures are useful because they reflect how we manage and evaluate the performance of our business, they provide an important insight into the underlying health of our business and they are the primary indicators management uses as a basis for the planning and forecasting of future periods and for compensation purposes. Please see D&B’s Form 8-K dated and filed on July 19, 2004 with the Securities Exchange Commission for additional discussion of how the Company defines these measures, why it uses them and why it believes they provide useful information to investors.

Except for our revenue growth aspirations which are provided only on a non-GAAP basis because we are unable to predict the future movements of foreign exchange rates or potential business model changes, the most directly comparable GAAP measure and reconciliation between each non-GAAP measure and the comparable GAAP measure can be found in the Appendix to this presentation. Our revenue growth results and aspiration are provided only on a non-GAAP basis, or as core revenue growth before the effect of foreign exchange, unless otherwise noted. In addition, all references to operating income and diluted earnings per share growth results and aspirations are before non-core gains and charges, unless otherwise noted.

Non-GAAP Financial Measures


Yesterday we announced strong q2 revenue and earnings results

Yesterday, we announced strong Q2 revenue and earnings results…

D&B Announces Strong Second Quarter Resultsand Raises 2004 Core Revenue Guidance

PRESSRELEASE


Which represents our third consecutive quarter of strong organic revenue growth

…which represents our third consecutive quarter of strong organic revenue growth

D&B Quarterly Revenue Growth

Percent

Total growth

Organic growth

11

9

8

7

7

7

6

2

3Q

4Q

1Q

2Q

2003

2004


We also continue to deliver strong eps growth

We also continue to deliver strong EPS growth

D&B Quarterly EPS Growth

Percent

22

20

18

17

3Q

4Q

1Q

2Q

2003

2004


For 2004 we increased our revenue guidance to 6 to 8 and confirmed our eps guidance

For 2004, we increased our revenue guidance to 6% to 8% and confirmed our EPS guidance

Guidance

Revenue growth

6 - 8%

EPS

$2.94 - $2.99

For a reconciliation to the most comparable GAAP measure, see appendix.


Delivering the blueprint for growth

Today, we’ll show you how we are transforming D&B and laying the foundation to create even more shareholder value in 2005-2007

  • Allan:We have accomplished a lot and there’s even more ahead

  • Steve:We are confident we will deliver our 7% to 9% revenue growth aspiration

  • Greg:We will continue to drive growth and profitability in our International business

  • Sara:We are confident we will grow margins by 100+ basis points and continue to deliver EPS in the mid to upper teens


Let s start by looking back at the progress we ve made since our journey began four years ago

Let’s start by looking back at the progress we’ve made since our journey began four years ago

Become a Growth Company with an Important Presence on the Web


We said we would transform d b from an under performing company to a high performing company

We said we would transform D&B from an under-performing company to a high-performing company

To

High-Performing

Growth Company

Delivering Consistent

Returns to Shareholders

From

Under-Performing

Organization with

Under-Leveraged

Assets


And that we would achieve this without sacrificing earnings

And that we would achieve this without sacrificing earnings

To

High-Performing

Growth Company

Delivering Consistent

Returns to Shareholders

From

Under-Performing

Organization with

Under-Leveraged

Assets

Revenue Growth 3%

Operating Income Growth10%

EPS Growth10%


We are doing that and even more

We are doing that and even more

2003 Results

Oct. 2000

Commitment

Revenue Growth 3%

5%

Operating Income Growth10%

13%

EPS Growth10%

18%


We also achieved our web revenue aspiration and continue to focus on delivering even more

We also achieved our Web revenue aspiration and continue to focus on delivering even more

2004 YTD

Oct. 2000

Commitment

Revenue Delivered Over the Web Majority

80%


Delivering the blueprint for growth

Our progress is driven by our Blueprint for Growth strategy, which serves as the roadmap for our transformation


Delivering the blueprint for growth

We are turning our Winning Culture, Brand and Flexible Business Model into powerful competitive advantages


Let s start with a review of our winning culture which powers our strategy

Let’s start with a review of our Winning Culture, which powers our strategy


Delivering the blueprint for growth

We know that our focus on building a Winning Culture through improved leadership is making a difference


We have more than 5 000 team members engaged in driving our success

We have more than 5,000 team members engaged in driving our success

Survey participation98%


Our team understands and has confidence in our strategic direction

Our team understands and has confidence in our strategic direction

Survey participation98%

Understand our Blueprint87%

Confidence in our Blueprint75%


We are world class at taking ownership to become better leaders

We are world-class at taking ownership to become better leaders

Survey participation98%

Understand our Blueprint87%

Confidence in our Blueprint75%

Taking steps to improve leadership92%


And we know that when our customers win d b and our shareholders win

And we know that when our customers win, D&B and our shareholders win

Survey participation98%

Understand our Blueprint87%

Confidence in our Blueprint75%

Taking steps to improve leadership92%

Understand my role in enabling customers to Decide with Confidence91%


Delivering the blueprint for growth

Through our investments in building a Winning Culture, we are creating a company of great leaders focused on driving our success

Survey participation98%

Understand our Blueprint87%

Confidence in our Blueprint75%

Taking steps to improve leadership92%

Understand my role in enabling customers to Decide with Confidence91%


We are also unlocking the value of one of our most under leveraged assets our brand

We are also unlocking the value of one of our most under-leveraged assets – our Brand


Delivering the blueprint for growth

When we launched our Blueprint for Growth strategy, the D&B Brand was highly recognized, but its value was built on being a data provider

Data

Provider


Delivering the blueprint for growth

To unlock the value of our Brand, we first repositioned it as one that enables customers to make confident business decisions…

A confident

business

decision

experience

Data

Provider


And created one powerful visual representation of the value we provide to our customers

…and created one powerful visual representation of the value we provide to our customers…


And we go to market with one compelling value proposition our dunsright tm quality process

…and we go to market with one compelling value proposition – our DUNSRightTM quality process

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

In addition to our Culture and our Brand, we are also transforming our Business Model to fund growth and create value for shareholders


And we ve done this year after year

And we’ve done this year after year…

Annualized Savings Derived from Financial Flexibility

$ Millions (Annualized)

130

80

80

75

70

2000

2001

2002

2003

2004E

Year Announced

Before any restructuring charges and transition costs and before any reallocation of spending


Which has been a key contributor to margin improvements

… which has been a key contributor to margin improvements

Operating Margin

Percent

23.3

22.5

19.9

17.1

2000

2001

2003

2002


Delivering the blueprint for growth

By establishing a foundation built on our Brand, our Business Model and our Culture, we are driving growth and creating value


Delivering the blueprint for growth

Last year, we communicated our aspiration to deliver 7% to 9% sustainable revenue growth by 2005-2007 and continue to deliver strong EPS

2005-2007

Aspiration

Revenue Growth 7-9%

EPS GrowthMid to upper teens


And we are making great progress toward this aspiration in 2004

And we are making great progress toward this aspiration in 2004

2004 Guidance

2005-2007

Aspiration

6-8%

Revenue Growth 7-9%

EPS GrowthMid to upper teens

16-18%


As shareholders you have seen the results of delivering on our blueprint for growth strategy

As shareholders, you have seen the results of delivering on our Blueprint for Growth strategy


We expect our eps will have doubled in the last four years

We expect our EPS will have doubled in the last four years

EPS

$ per share

2.94 - 2.99

1.47

2000

2004E


We expect our free cash flow will have grown considerably

We expect our free cash flow will have grown considerably…

Free Cash Flow

$ Millions

230 - 245

135*

2000

2004E

*2000 free cash flow has been adjusted for the one-time tax payment to the IRS related to the utilization of capital losses 1989-1990. See appendix for reconciliation of free cash flow.


Which will enable us to repurchase 485 million of shares

…which will enable us to repurchase $485 million of shares

Share Repurchase

$ Millions

200

100

85

100

2001

2004E

2003

2002


Our stock price performance has begun to reflect these results

Our stock price performance has begun to reflect these results

Shareholder Return

$ Millions

350

D&B 209%

300

250

200

Indexed Chart

S&P 400 9%

150

100

S&P 500 -23%

50

3/29/02

9/29/00

3/29/01

6/29/01

9/29/01

6/29/02

9/29/02

3/29/03

6/29/03

9/29/03

3/29/04

7/15/04

12/29/00

12/29/01

12/29/02

12/29/03


Delivering the blueprint for growth

We believe our strategy has even more potentialto deliver greater value to our customers and drive sustainable growth for D&B


Delivering the blueprint for growth

As a result, we have evolved our Aspiration to reflect our intensified focus on our customers’ success

To be the most trusted

source of business insight

so our customers can

decide with confidence


Now let s show you how our strategy will drive sustainable revenue growth going forward

Now, let’s show you how our strategy will drive sustainable revenue growth going forward

  • Allan:We have accomplished a lot and there’s even more ahead

  • Steve:We are confident we will deliver our 7% to 9% revenue growth aspiration

  • Greg:We will continue to drive growth and profitability in our International business

  • Sara:We are confident we will grow margins by 100+ basis points and continue to deliver EPS in the mid to upper teens


We are making progress toward achieving our 7 to 9 revenue growth aspiration

We are making progress toward achieving our 7% to 9% revenue growth aspiration

Revenue Growth

Percent

8

5

3

1

2004 YTD

2002

2001

2003


Delivering the blueprint for growth

Before we review our progress, let’s provide an overview of the key revenue sources, first from a geographic perspective…

2003 Revenue by Geography

Percent

International

25

75

North America


And then by customer solution set

…and then by customer solution set

2003 Revenue by Solution

Percent

Sales & Marketing

28

Supply Management

3

67

2

E-Business

Risk Management


Driving our progress has been our focus on seven strategic priorities

Driving our progress has been our focus on seven strategic priorities

1. Build the brand of D&B around the DUNSRightTM quality process

2.Grow RMS by 3-5% annually

3.Grow S&MS by 4-7% annually

4.Grow SMS by 15-20% annually

5.Acquire or develop a 5th product line

6.Grow E-Business to consistently deliver 1 point per year

7. Implement a financially flexible business model

Winning Culture is at the foundation of these priorities


Our first strategic priority is to build the brand around dunsright tm our unique value proposition

Our first strategic priority is to build the Brand around DUNSRightTM– our unique value proposition

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Our dunsright tm quality process powers all our customer solution sets

Our DUNSRightTM quality process powers all our Customer Solution Sets

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S

Number®

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase

Quality Assurance

DUNSRightTM


Delivering the blueprint for growth

Should I extend credit to this new customer?

What credit limit should I set?

Will this customer pay me on time?

Our second priority, Risk Management Solutions (RMS), helps our customers increase profitability while mitigating risk

  • What is my total credit risk exposure?

  • Should I change my credit policies?

  • How can I proactively manage my cash flow?


Our rms revenue has grown recently after years of marginal performance

Our RMS revenue has grown recently afteryears of marginal performance

RMS Revenue Growth

Percent

7

  • We’ve extracted more value from our DUNSRightTMquality process

  • We’ve implementeda new risk management subscriptionplan

3

1

1

2004 YTD

2001

2002

2003


Our third priority sales marketing solutions s ms helps customers grow their businesses faster

Our third priority, Sales & Marketing Solutions (S&MS), helps customers grow their businesses faster

  • How can I exploit untapped opportunities with my existing customers?

  • How can I allocate sales force resources to my revenue growth potential?

  • Who are my best customers?

  • How can I find prospects that look like my best customers?


Delivering the blueprint for growth

While our S&MS business has grown, it has been inconsistent as a result of product mix changes and environmental factors

S&MS Revenue Growth

Percent

8

  • Opportunities from investing in our sales force are gaining traction

  • DUNSRightTM investments in ‘Super 7’ are also aiding our growth

6

1

1

2001

2002

2003

2004 YTD


Delivering the blueprint for growth

Our next priority, Supply Management Solutions (SMS), helps our customers generate new and recurring savings in their supply base

  • How can I avoid supply chain disruption?

  • How can I know which suppliers are also customers?

  • How can I find suppliers to help achieve my corporate diversity objectives?

  • How much do I spend on purchasing?

  • How much businessdo I do with each supplier?

  • How can I minimize my purchasing costs?


Our sms business which has been a strong area for us is off to a poor start this year

Our SMS business, which has been a strong area for us, is off to a poor start this year

SMS Revenue Growth

Percent

18

16

  • We are increasing our sales pipeline

  • We are improving product delivery to increase customer satisfaction and renewal rates

- 2

- 5

2001

2002

2003

2004 YTD


Our e business solutions help customers convert prospects to clients faster

Our E-Business Solutions help customers convert prospects to clients faster

  • What are the prospect’s key business priorities?

  • How does the prospect’s business compare to my customers?

  • How does the prospect compete to win in their industry?

  • Who are the key senior level decision makers?

  • How do I build a strong relationship with them?


Our priority to grow e business continues to deliver very good results

Our priority to grow E-Business continues to deliver very good results

E-Business Revenue

Millions

12

  • Leveraged the power of DUNSRightTM to double the size of Hoover’s database

11

10

8

8

3

1Q

2Q

3Q

4Q

1Q

2Q

2003

2004


Delivering the blueprint for growth

And finally, we continue to explore opportunities to acquire or develop a 5th product line that leverages our DUNSRightTM quality process

  • Selective Acquisitions

  • Enterprise Risk & Compliance

  • Predictive Analytics


As we ve said we re making good progress by focusing on our strategic priorities

As we’ve said, we’re making good progress by focusing on our strategic priorities

1. Build the brand of D&B around the DUNSRightTM quality process

2.Grow RMS by 3-5% annually

3.Grow S&MS by 4-7% annually

4.Grow SMS by 15-20% annually

5.Acquire or develop a 5th product line

6.Grow E-Business to consistently deliver 1 point per year

7. Implement a financially flexible business model

Winning Culture is at the foundation of these priorities


Delivering the blueprint for growth

As we look forward, we see three fundamental factors that give us confidence that we can deliver our 7% to 9% revenue growth aspiration

The continued implementation of ourBlueprint for Growth strategy

1

The marketplace needs what we provide andthe opportunity to provide more is profound

2

Our unique competitive advantage in DUNSRightTMenables us to meet more of our customers’ needs

3


Delivering the blueprint for growth

First, the foundation we’ve built on our Culture, our Brand and our Flexible Business Model will fuel our growth


Delivering the blueprint for growth

Second, we fulfill fundamentally essential needs that are critical to the health of our customers’ businesses, in good times and in bad

Mitigate risk, increase cash flow and drive increased profitability

We enable customers to:

Increase revenue from new and existing customers

Identify purchasing savings and ensure compliance within their supply base


Delivering the blueprint for growth

In addition to fulfilling essential needs for our customers, a profound growth opportunity exists in the marketplace

Marketplace


Let s look at our view of the marketplace one step at a time beginning with our own business

Let’s look at our view of the marketplace one step at a time, beginning with our own business

External Spend

D&B Revenue


We add to this our direct competitors share of the b2b marketplace

We add to this our direct competitors’ share of the B2B marketplace

External Spend

Competitors’

Revenue

D&B Revenue


Delivering the blueprint for growth

And we also view the B2B marketplace through the lens of what our customers spend against their own internal processes

Internal Spend

Customers’

Internal

Spend

External Spend

Competitors’

Revenue

D&B Revenue


Delivering the blueprint for growth

We believe that by leading with our new Aspiration, we will unlock this profound opportunity existing in our customers’ internal spend

To be the most trusted

source of business insight

so our customers can

decide with confidence


Delivering the blueprint for growth

The third fundamental factor giving us confidence about revenue growth is DUNSRightTM _ our unique competitive advantage

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

Through the first DUNSRightTM driver – Global Data Collection – we bring together data from a variety of sources worldwide for our customers

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


We collect the most complete data about business entities globally

We collect the most complete data about business entities globally

  • Direct Investigations, News and Media

  • 100+ million phone calls annually to businesses

  • Top news providers

  • Merger/Acquisitions

  • D&B Global Database

  • 86 million businesses

  • Over 200 countries

  • Payment and Financial Data

  • 600+ million trade records updated annually

  • Public company financials

Over 1 Million Daily Updates

  • Public Records and Government Registries

  • 100+ million records

  • Suits, liens, judgments and bankruptcy filings

  • Business registrations

D&B D-U-N-S® Number


Delivering the blueprint for growth

As companies look for growth outside the U.S., our Global Data Collection gives them the most comprehensive view of worldwide prospects

A High-Tech Multinational Company

ChinaUKJapanGermanyCanadaFranceBrazil

D&BGlobal Database

Global Prospects


As global data changes so quickly dunsright tm helps customers keep their portfolios up to date

As global data changes so quickly, DUNSRightTM helps customers keep their portfolios up to date

In the next 24 hours:

  • 8,640 businesses will have a suit, lien or judgment filed against them

  • 5,760 business addresses will change

  • 2,680 leadership (CEO, CFO, etc.) changes will occur

  • 480 businesses will fail

D&BGlobal Database

Customer’s File


Delivering the blueprint for growth

Our second driver - Entity Matching - enables customers to gain a single, more accurate view of their customers

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

A global chemical company needed to consolidate 400,000 records from 30 legacy systems to better manage their portfolio of customers and suppliers

30 Regional

Legacy

Systems

One Global ERP System


We applied our dunsright tm entity matching process to their portfolio

We applied our DUNSRightTM Entity Matching process to their portfolio

ABC, Inc

123 Elm St.

Bethlehem, PA 18025

(SIC) 5411-02

Chuck Smith, President

1

D&B D-U-N-S Number:12-345-6780

ABC, Inc

+ CS Manufacturing

P.O. Box 111

Bethlehem, PA 18055

123 Elm St.

Bethlehem, PA 18025

(SICs) 5411 0202, 5541 9901

Charles Smith, President

610 882-7600

CS Manufacturing

P.O. Box 111

Bethlehem, PA 18055

(SIC) 5411-02

Chuck Smith, President

610 882-7600

2

1

Charles Smith

123 Elm St.

Bethlehem, PA 18025

(SIC) 5541-99

215 882-7600

3


Delivering the blueprint for growth

As a result, DUNSRightTM determined there were only 100,000 unique customers and suppliers in their portfolio

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S

Number®

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase

Quality Assurance

100,000 unique D-U-N-S ® Number records

400,000 records in global ERP system


Delivering the blueprint for growth

Entity Matching also enables our customers togain a better understanding of their unique customer relationships

A High-Tech Multinational Company

Spain

  • 76% are unique customer relationships

  • 24% are duplicate records

D&BGlobal Database

Portugal

Italy

Netherlands

250,000 total records


The d u n s number allows customers to rely on a unique publicly recognized identification system

The D-U-N-S® Number allows customers to rely on a unique publicly recognized identification system

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

With our D-U-N-S® Number, we track businesses through their life cycle, including all of the changes that occur over time

Today

Hewlett-Packard Company

DUNS: 00-912-2532

Started 1939

Palo Alto, CA

Compaq Computer

Operating as a Subsidiary of Hewlett-Packard Company

DUNS: 00-389-7733

Started 2002

Houston, TXCompaq subsidiary dissolved in April 2004

Digital Equipment Corp

DUNS: 00-103-8066

Started 1957

Maynard, MA

Acquired by Compaq Computer in 1998

Hewlett-Packard Company

DUNS: 00-912-2532

Started 1939

Palo Alto, CA

Compaq Computer

DUNS: 00-389-7733

Started 1982

Houston, TX

Acquired by Hewlett – Packard in 2002

Tandem Computer

DUNS: 06-910-1152

Started 1974

Cupertino, CA

Acquired by Compaq Computer in 1997


Corporate linkage provides customers with a total view of corporate risk and growth opportunity

Corporate Linkage provides customers with a total view of corporate risk and growth opportunity

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

Without DUNSRightTM, companies typically identify their customers based on the assumption that they are separate and unrelated

A High-Tech Multinational Company

Customer 1

Mobil

Petrochemical

Sales & Supply

Corporation NV

Zaventem, Belgium

Customer 2

Advanced

Elastomer

Systems SA

Brussels, Belgium

Customer 3

Kuen Falca SRL

Merano, Italy

Customer 4

Esso

Portuguesa, LDA

Lisbon, Portugal


Delivering the blueprint for growth

Our Corporate Linkage capability reveals previously unseen relationships so our customers know who their customers really are

DUNS 00-121-3214

Exxon Mobil

Corporation

Irving, TX

USA

(Global Ultimate)

Not relatedto Exxon MobilCorporation

Customer 1

DUNS 77-473-4461

Mobil Petrochemical Sales & SupplyCorporation NVZaventem, Belgium

(Single location)

Customer 2

DUNS 76-531-3887

Advanced ElastomerSystems SABrussels, Belgium

(Subsidiary)

Customer 4

DUNS 44-900-2096

EssoPortuguesa, LDALisbon, Portugal

(Subsidiary)

Customer 3

DUNS 43-753-0165

Kuen Falca SRL

Merano, Italy

(Subsidiary)


Delivering the blueprint for growth

Corporate Linkage also reveals our customers’ entire corporate family relationships, exposing them to significant new growth opportunities…

DUNS 00-121-3214

Exxon Mobil

Corporation

Irving, TX

USA

(Global Ultimate)

New

Growth

Opportunities

DUNS 76-531-3887

Advanced

Elastomer

Systems SA

Brussels, Belgium

(Subsidiary)

DUNS 44-900-2096

Esso

Portuguesa, LDA

Lisbon, Portugal

(Subsidiary)

63 more

subsidiaries

Of

Exxon Mobil

Corporation

645 more direct

branches of

Exxon Mobil

Corporation

DUNS 43-753-0165

Kuen Falca SRL

Merano

Italy

(Subsidiary)

4 more

branches

of Esso

Portuguesa, LDA

2,429 more branch

locations under the

1st level

subsidiaries

1 more

branch of

Advanced

Elastomer SA


Delivering the blueprint for growth

…and helping them determine whether members of these families are also their suppliers, which directly affects their negotiating leverage

DUNS 00-121-3214

Exxon Mobil

Corporation

Irving, TX

USA

(Global Ultimate)

On

Procurement

Files

DUNS 42-840-6078

Esso

Italiana SPA

Rome, Italy

DUNS 76-531-3887

Advanced

Elastomer

Systems SA

Brussels, Belgium

(Subsidiary)

DUNS 44-900-2096

Esso

Portuguesa, LDA

Lisbon, Portugal

(Subsidiary)

5 additional

subsidiaries

Of

Exxon Mobil

Corporation

DUNS 43-753-0165

Kuen Falca SRL

Merano

Italy

(Subsidiary)

9 more

branches

Exxon Mobile

Corporation


Delivering the blueprint for growth

Predictive Indicators provide our customers with insight into the likelihood a business will perform in a specific way in the future

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


Delivering the blueprint for growth

Through Predictive Indicators, we can use our DUNSRightTM quality process to enable customers to make better, more informed decisions

D&BPredictive Indicators

Better Decisions

  • Descriptive Ratings

  • Predictive Scores

  • Demand Estimators

  • Accept/Reject

  • Pricing

  • Targeting

Customer’s File


Delivering the blueprint for growth

With this new insight, our customers can customize their marketing strategies and improve response rates…

A Large Financial Services Company

Response Rate

Percent

1.42

0.86

Without D&B

With D&B Response Model


And identify lower risk prospects most likely to meet our customers credit evaluation criteria

...and identify lower-risk prospects most likely to meet our customers’ credit evaluation criteria

Approval Rate

Percent

42

27

Without D&B

With D&B Approval Model


Delivering the blueprint for growth

These five drivers demonstrate how the power of DUNSRightTMenables us to meet our customers’ needs and drive sustainable growth

Quality Assurance

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase


These fundamental factors drive our confidence that we will achieve our revenue growth aspiration

These fundamental factors drive our confidence that we will achieve our revenue growth aspiration

The continued implementation of ourBlueprint for Growth strategy

1

The marketplace needs what we provide andthe opportunity to provide more is profound

2

Our unique competitive advantage in DUNSRightTMenables us to meet more of our customers’ needs

3


Delivering the blueprint for growth

Looking forward, we feel confident we can leverage these factors to deliver our 7% to 9%revenue growth aspiration

Our Blueprint for Growth

1

Profound Market Opportunity

2

DUNSRightTMQuality Process

3

7 - 9%

5th Product Line

E-Business Solutions

Supply Management Solutions

Sales & Marketing Solutions

Risk Management Solutions

2005 - 2007


Looking at it by customer solution we expect our rms business to grow 3 to 5 annually

Looking at it by customer solution, we expect our RMS business to grow 3% to 5% annually

RMS Revenue Growth

Percent

7

3 - 5% annually

3

1

1

2004 YTD

2001

2002

2003


We expect our s ms business to grow 4 to 7 annually

We expect our S&MS business to grow 4% to 7% annually

S&MS Revenue Growth

Percent

8

6

4 - 7% annually

1

1

2001

2002

2003

2004 YTD


And we expect our sms business to grow 15 to 20 annually

And, we expect our SMS business to grow 15% to 20% annually

SMS Revenue Growth

Percent

18

16

15 - 20% annually

- 2

- 5

2001

2002

2003

2004 YTD


In addition to our current business we expect our e business to drive continued growth

In addition to our current business, we expect our E-Business to drive continued growth

E-Business Revenue

$ Millions

12

11

10

8

8

One point of growth

3

1Q

2Q

3Q

4Q

1Q

2Q

2003

2004


We believe our 5 th product line powered by dunsright tm will be a source of growth

We believe our 5th product line, powered by DUNSRightTM, will be a source of growth

  • Enterprise Risk & Compliance

  • Predictive Analytics

  • Acquisitions

One point of growth


Delivering the blueprint for growth

We feel confident that this portfolio of customer solutions will deliver our 7% to 9% sustainable revenue growth aspiration

7 - 9%

1.0

Points

5th Product Line

Our Blueprint for Growth

1.0

Points

1

E-Business Solutions

1.0

Points

Supply Management Solutions

Profound Market Opportunity

2

2.0 - 3.0

Points

Sales & Marketing Solutions

DUNSRightTMQuality Process

3

2.0 - 3.0

Points

Risk Management Solutions

2005 - 2007


Delivering the blueprint for growth

Now, let’s show you how we are transforming our International business, which is one of the drivers of our sustainable growth

  • Allan:We have accomplished a lot and there’s even more ahead

  • Steve:We are confident we will deliver our 7% to 9% revenue growth aspiration

  • Greg:We will continue to drive growth and profitability in our International business

  • Sara:We are confident we will grow margins by 100+ basis points and continue to deliver EPS in the mid to upper teens


When we launched the blueprint for growth strategy our international business was underperforming

When we launched the Blueprint for Growth strategy, our International business was underperforming

  • Not growing

  • Unprofitable and requiring cash

  • No distinctive value proposition

  • No focused strategy


At that time international represented about one third of d b revenue and was in decline

At that time, International represented about one third of D&B revenue and was in decline

2000 Revenue by Geography

Percent

International

32

68

North America


International was also losing money and negatively impacting overall profitability

International was also losing money and negatively impacting overall profitability

2000 Operating Margin

Percent

30

-2

North America

International


Delivering the blueprint for growth

Our International operations consisted of full ownership of 34 self-contained, independent businesses around the globe…


W hich undermined our value proposition for our global customers

…which undermined our value proposition for our global customers

  • Uneven data quality in certain geographies

  • Inconsistent product implementation market to market

  • Lack of a global customer strategy


To improve our performance we created a new strategy for international

To improve our performance, we created a new strategy for International

We focused on International as one organization, rather than as 34 independent businesses

1

  • We then focused on establishing leading competitive positions in each major market by enhancing our DUNSRightTM quality process, either by

    • Direct Ownership

    • Partnerships

2


Our first step was to focus on international as one organization rather than independent businesses

Our first step was to focus on International as one organization, rather than independent businesses

  • Manage common functions holistically

  • Focus sales and marketing functions locally

  • Consolidate infrastructure


We then focused on establishing leading competitive positions in each major market

We then focused on establishing leading competitive positions in each major market

We define a leading competitive position as

  • Enhanced DUNSRightTMquality process

  • Leading RMS provider

  • Leading S&MS provider

  • Potential to grow both


Delivering the blueprint for growth

We determined that we could achieve this leading competitive position by either direct ownership or establishing partnerships

We will achieve a leading competitive position by

We define a leading competitive position as

  • Direct ownership

    - or -

  • Establishing strategic partnerships

  • Enhanced DUNSRightTMquality process

  • Leading RMS provider

  • Leading S&MS provider

  • Potential to grow both


Delivering the blueprint for growth

We are now focused in those direct ownership markets where we either have or can achieve a leading competitive position

We define a leading competitive position as

In Europe:

  • Italy

  • UK

  • Benelux

  • Enhanced DUNSRightTMquality process

  • Leading RMS provider

  • Leading S&MS provider

  • Potential to grow both


Delivering the blueprint for growth

In other markets, we have established partnerships with strong players locally that are able to enhance our DUNSRightTM quality process

  • 2001

  • 2004 YTD

  • 2002

  • 2003

  • Israel

  • Sweden

  • Denmark

  • Norway

  • Finland

  • Japan

  • Australia

  • New Zealand

  • Malaysia

  • Thailand

  • Korea

  • Singapore

  • India / Pakistan / Middle East

  • Germany

  • Austria

  • Switzerland

  • Poland

  • Hungary

  • Czech Republic

  • Spain

  • Portugal

Announced yesterday


Our strategy for international is delivering strong results

Our strategy for International is delivering strong results

  • Enhanced DUNSRightTMglobally

  • Improved revenue growth

  • Improved profitability

Focus on International asone business

1

Establish leading competitivepositions either throughownership or partnership

2


We are enhancing the drivers of our dunsright tm quality process

We are enhancing the drivers of our DUNSRightTM quality process

Corporate

Linkage

4

Entity

Matching

2

D-U-N-S®

Number

3

Predictive

Indicators

5

Global

Data

Collection

1

Quality

Information

D&BGlobalDatabase

Quality Assurance


We have increased our international database which enhances our dunsright tm global data coverage

We have increased our International database, which enhances our DUNSRightTM Global Data Coverage

Growth of International Database

Millions of Records

53

40

2004 YTD

2000


Delivering the blueprint for growth

Our strategic partnerships, such as the one in Japan, have enabled us to expand the breadth of our database coverage

D&BGlobalDatabase

Partnership with TSR in Japan

D&BGlobalDatabase

D&BGlobalDatabase

240,000Records on JapaneseBusinesses

2,000,000Records on JapaneseBusinesses


While others such as our partnership in the nordic region enhance the depth of coverage

While others, such as our partnership in the Nordic region, enhance the depth of coverage

Bonnier

D&BGlobalDatabase

D&BGlobalDatabase

Best S&MS Database in Nordics


Delivering the blueprint for growth

We are investing in other DUNSRightTM enhancements to improve the quality of our information, such as our acquisitions in Italy

D&BGlobalDatabase

DataHouse

D&BGlobalDatabase

Italian Real Estate Information


Our international strategy has greatly expanded our dunsright tm corporate linkage capabilities

Our International strategy has greatly expanded our DUNSRightTM Corporate Linkage capabilities

Number of Priority Corporate Linkage Relationships

5,000

2,000

2004 YTD

2000


Delivering the blueprint for growth

As a result of this focused strategy, we are driving improved revenue growth in our International business

International Revenue Growth

Percent

8

5

2

2

-1

2001

2002

2003

2004 YTD

2000


International has also generated significant improvements in operating margins

International has also generated significant improvements in operating margins

International Margin

Percent

14

12

6

-2

2000

2001

2002

2003


Delivering the blueprint for growth

We are transforming our international business and making it a key contributor to overall growth and profitability

  • Enhancing our DUNSRightTM quality process

  • Creating a platform for sustainable revenue growth

  • Becoming a key contributor to profitability

Creating shareholder value


Delivering the blueprint for growth

Now, let’s show you how our business model fuels our sustainability in revenue growth and powers our ability to consistently deliver EPS

  • Allan:We have accomplished a lot and there’s even more ahead

  • Steve:We are confident we will deliver our 7% to 9% revenue growth aspiration

  • Greg:We will continue to drive growth and profitability in our International business

  • Sara:We are confident we will grow margins by 100+ basis points and continue to deliver EPS in the mid to upper teens


Delivering the blueprint for growth

We have made good progress on our seventh strategic priority – implementing a financially flexible business model

1. Build the brand of D&B around the DUNSRightTM quality process

2.Grow RMS by 3-5% annually

3.Grow S&MS by 4-7% annually

4.Grow SMS by 15-20% annually

5.Acquire or develop a 5th product line

6.Grow E-Business to consistently deliver 1 point per year

7. Implement a financially flexible business model

Winning Culture is at the foundation of these priorities


Delivering the blueprint for growth

A critical step in transforming D&B was creating a financially flexible model to fund growth and create value for shareholders


When we began our transformation the challenge was to change our fixed cost mindset

When we began our transformation, the challenge was to change our fixed cost mindset

Total Costs


Today we view almost every dollar that we spend as flexible

Today, we view almost every dollar that we spend as flexible

Flexible

Not Flexible

~$1 billion


We accomplish this through a process we call continuous reengineering

We accomplish this through a process we call continuous reengineering

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

  • Eliminate redundancies

  • Standardize processes

  • Consolidate activities

  • Automate manual processes

  • Outsource or offshore


Delivering the blueprint for growth

This process of continuous reengineering has enabled us to generate significant flexibility year after year

Annualized Savings Derived from Financial Flexibility

$ Millions (Annualized)

130

80

80

75

70

2000

2001

2002

2003

2004E

Year Announced

Before any restructuring charges and transition costs and before any reallocation of spending


Delivering the blueprint for growth

The savings generated through continuous reengineering are reinvested in the business or returned to shareholders

One-time Transition Costs (~20%)

FF savings

Available for Investment

(~60%)

Increase EPS (~20%)

Cost base

100%


Since the bulk of these savings go back into the business as investments

Since the bulk of these savings go back into the business as investments…

One-time Transition Costs (~20%)

Reinvested in the business, subject to future reengineering

(~80%)

FF savings

Available for Investment

(~60%)

Increase EPS (~20%)


They become subject to future reengineering

…they become subject to future reengineering

One-time Transition Costs (~20%)

Reinvested in the business, subject to future reengineering

(~80%)

FF savings

Available for Investment

(~60%)

Increase EPS (~20%)


Delivering the blueprint for growth

In 2000, our infrastructure consisted of 3 global data centers and multiple in-country mini data centers

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

2000

  • 3 global data centers

  • Multiple in-country mini data centers

  • 450 full-time employees

  • $120 million annual cost

  • All capital spend by D&B


Delivering the blueprint for growth

Today, our infrastructure consists of no data centers and few in-country mini data centers and we reduced our investment in this process

Automate/ Migrate toWeb

Automate/ Migrate toWeb

Outsource

Outsource

Eliminate

Eliminate

Standardize

Standardize

Consolidate

Consolidate

Automate/ Migrate toWeb

Automate/ Migrate toWeb

Outsource

Outsource

Eliminate

Eliminate

Standardize

Standardize

Consolidate

Consolidate

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

2004

2000

  • No global data centers

  • Few in-country mini data centers

  • 50 full-time employees

  • $65 million annual cost

  • No capital spend by D&B

  • 3 global data centers

  • Multiple in-country mini data centers

  • 450 full-time employees

  • $120 million annual cost

  • All capital spend by D&B


Delivering the blueprint for growth

Through this process, we generated $55 million in savings which we were able to reinvest in the business to drive growth

Generated ~$44 million of funds to be reinvested

(~80% of $55 million)

FF savings

($55 million)

Returned ~$11 million to shareholders in EPS

(~20% of $55 million)


Delivering the blueprint for growth

And, we continue to reengineer our data center operations to generate additional financial flexibility savings in 2005

  • Continue to eliminate and standardize processes

  • Renegotiate agreements with current vendors

  • Consolidate vendor base

  • Re-bid existing outsourcing contracts


In 2000 our corporate linkage quality was inconsistent

In 2000, our Corporate Linkage quality was inconsistent

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

2000

  • Inconsistent manual processes

  • 2,000 priority relationships locally maintained

  • 37- day M&A update cycle


Delivering the blueprint for growth

Over the past four years, we’ve made significantimprovements in the consistency of our Corporate Linkage quality

Automate/ Migrate toWeb

Automate/ Migrate toWeb

Outsource

Outsource

Eliminate

Eliminate

Standardize

Standardize

Consolidate

Consolidate

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

Automate/ Migrate toWeb

Automate/ Migrate toWeb

Outsource

Outsource

Eliminate

Eliminate

Standardize

Standardize

Consolidate

Consolidate

Automate/ Migrate toWeb

Outsource

Eliminate

Standardize

Consolidate

2004

2000

  • Standardized and automated processes

  • 5,000 priority relationships centrally maintained

  • 12- day M&A update cycle

  • Inconsistent manual processes

  • 2,000 priority relationships locally maintained

  • 37- day M&A update cycle


Delivering the blueprint for growth

This process of continuous reengineering enables us to grow revenue at a faster rate than costs, resulting in margin improvements

Operating Margin

Percent

23

17

2000

2001

2002

2003


Delivering the blueprint for growth

In addition to margin improvement, we have also increased free cash flow through fundamental changes in our infrastructure

  • Continuous reengineering reduces infrastructure inefficiencies

  • Leveraging partners in key markets

  • Continued outsourcing of capital intensive activities

Less capital is required to run same operations

No capital required in partnerships markets

Outsourcing partners absorb future capital expense requirements


We have improved the capital efficiency of our business model

We have improved the capital efficiency of our business model

Capital Expenses as a Percent of Revenue

Percent

5

4

4

2

2000

2001

2002

2003


We have also improved our discipline around working capital management

We have also improved our discipline around working capital management

Days of Sales Outstanding

Days

90

89

85

81

2000

2001

2002

2003


This strong cash flow has allowed us to fund value creating acquisitions and repurchase shares

This strong cash flow has allowed us to fund value-creating acquisitions and repurchase shares

Share Repurchases

Acquisitions

$154M

$373M

2001-2004 YTD

2001-2004 YTD


Our financially flexible model will continue to drive substantial shareholder value

Our financially flexible model will continue to drive substantial shareholder value

Margin improvement100+ basispoints

  • Generate Savings

  • Grow Revenue

Increasingcash

EPS

mid to upper teens


Appendix

Appendix


Reconciliation of non gaap to gaap measures

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of Core and Organic Revenue Growth Data


Reconciliation of non gaap to gaap measures1

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of Product Line Revenue Growth Data


Reconciliation of non gaap to gaap measures2

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of International Revenue Growth Data


Reconciliation of non gaap to gaap measures3

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of Free Cash Flow Data


Reconciliation of non gaap to gaap measures4

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of Operating Income Data


Reconciliation of non gaap to gaap measures5

Reconciliation of Non-GAAP to GAAP Measures

Reconciliation of Diluted EPS Data


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