EX-99 2 ex99presentation.htm PRESENTATION



 

 

Acxiom Investor Briefing

 

 

July 11, 2006

 

Copyright © 2006 Acxiom Corporation. All Rights Reserved.

 

 



 

 

Safe Harbor for Forward-Looking Statements

Statements in this presentation by Acxiom Corporation regarding its future financial and operating results, future opportunities for Acxiom, the potential market price of Acxiom stock, Acxiom's international operations and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including competitive pressures, adverse economic conditions, governmental regulations and other factors described in Acxiom's Annual Report on Form 10-K for the year ended March 31, 2006 and other reports that Acxiom files with the SEC. Acxiom disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this presentation.

 

Additional Information and Where to Find It

In connection with its 2006 annual meeting of stockholders, Acxiom Corporation will file a notice of annual meeting and proxy statement with the Securities and Exchange Commission (“SEC”). STOCKHOLDERS OF ACXIOM ARE URGED TO READ THE NOTICE OF ANNUAL MEETING AND PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders can obtain free copies of the notice of annual meeting and proxy statement and other documents when they become available by contacting investor relations at investor.relations@acxiom.com or by mail at Acxiom Corporation Investor Relations, 1 Information Way, Little Rock, Arkansas, 72202, or by telephone at 1-501-342-1321. In addition, documents filed with the SEC by Acxiom are available free of charge at the SEC’s website at www.sec.gov.

 

Acxiom Corporation and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Acxiom in connection with the 2006 annual meeting of stockholders. Information regarding the special interests of these directors and executive officers in the proposed election of directors will be included in Acxiom’s notice of annual meeting and proxy statement for its 2006 annual meeting. This document will be available free of charge at the SEC’s website at www.sec.gov and from Investor Relations at Acxiom as described above.

 

Non-GAAP Financial Measures

Our discussion today will include non-GAAP financial measures. We refer you to the Investor Relations section of our website, which includes a reconciliation to the comparable GAAP measure for each non-GAAP financial measure included in this discussion. The location of our website is www.acxiom.com.

2

 

 



 

 

Introduction

 

 

•

Acxiom’s growth has been fueled by world-leading companies who count on service and innovation

 

 

•

Market trends in each of Acxiom’s core business lines support recent investments and future plans

 

 

•

Acxiom share price has outperformed competitors and market indices over the last three years

 

 

•

Acxiom’s management team is critical to monetizing key investments

 

 

•

Acxiom has strengthened its financial leadership and Board of Directors

 

 

•

Acxiom’s plan will drive superior shareholder returns

 

 

We ask for your support for the Company’s director nominees in the upcoming shareholder vote

 

3

 

 



 

 

The Acxiom Corporation...What We Do

 

 

•

We Help Our Clients Drive Profitability by:

 

•

Retaining Existing Customers

 

•

Finding New Customers

 

•

Cross-Selling Products and Services

 

•

Mitigating Risk and Fraud

 

¦

 

 

•

In Doing So, We Provide:

 

•

Customer Management Solutions

 

•

Information Management Solutions

 

¦

 

 

•

To the World’s Largest Companies

 

4

 

 



 

 

Blue-Chip Clients and Partners

 

[LOGOS shown in presentation]

 

GE

CapitalOne®

citigroup

Sprint®

Together with NEXTEL

 

 

 

 

IBM®

GM

JPMorganChase

EQUIFAX

 

 

 

 

DELUXE

Sears

accenture

Baxter

 

 

 

 

hp

invent

EMC2

where information lives

E•FUNDSSM

TransUnionSM

 

 

 

 

HSBC

Guideposts

Federated

DEPARTMENT STORES, INC.

IRI

Information Resources, Inc.

Polk®

Multi-Dimensional IntelligenceTM

 

 

 

5

 



 

 

20 Years of Superior Revenue Growth

 

Investments Have Fueled Strong Revenue Growth

 

 

R

e

v

e

n

u

e

 

(i

n

 

M

i

l

l

i

o

n

s)

$

1,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,200

 

 

 

 

 

 

 

 

 

 

 

 

 

20.5% CAGR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$1,010

 

 

 

 

 

$1,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$964

 

 

 

 

 

$958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$866

 

 

 

 

 

 

 

 

$

800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$90

 

 

 

$91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1987

 

1988

 

1989

 

1990

 

1991

 

1992

 

1993

 

1994

 

1995

 

1996

 

1997

 

1998

 

1999

 

2000

 

2001

 

2002(1)

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Revenue recognition changed in fiscal 2001 in accordance with SAB 101.

6

 



 

 

The Transformation of Acxiom

 

 

Data Products

 

 

 

Data, Analytics & Consulting

 

 

»

 

 

Credit Card Databases

 

 

 

Multiple Industries

 

 

 

 

 

 

 

 

 

Enterprise Solutions

 

 

 

 

 

 

 

 

 

Digital & Risk Solutions

 

 

 

 

 

Batch Processing

 

 

 

Real Time Processing

 

 

 

 

 

Mainframes

 

»

 

Grid Technology

 

 

 

 

 

Independent Business Units

 

 

 

Integrated Organization

 

 

 

 

 

 

 

 

 

Technology Re-Engineering

 

 

 

 

 

Outsourcing

 

 

 

Non-Hosted Solutions

 

 

»

 

 

Arkansas-Centric

 

 

 

Global Business

 

1999

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acxiom

acquires

largest

competitor-

May & Speh

 

AbiliTec

Achieves

Industry

Leadership

 

Acxiom

Purchases

Computer

Graphics

 

Acxiom

Begins Grid

Development

 

Acxiom

Enters Risk

Business –

Purchases

AISS

 

Acxiom

Invents

Personicx

 

Acxiom

Deploys

Grid

 

Acxiom

Expands in

Europe

 

Acxiom

Standardizes

Operational

Functonality

 

Acxiom

Enters

China

 

Acxiom

Goes

Online

 

Acxiom

Expands

into Risk

Mitigation

 

 

7

 

 



 

 

Acxiom Sees Growing Demand for its Core Competencies

 

Data, Analytics and Consulting

•     Business intelligence

•     Clients’ demand for value-added services

•     Adoption of analytics outside financial services & insurance

 

Enterprise Solutions

•     Customer Data Integration (CDI)

•     Enterprise database solutions

•     Enterprise decision management

 

Digital Solutions

 

•     Online & search advertising

•     Use of demographic information

•     Interactive marketing / search engine optimization

 

Risk Solutions

 

•     Identity fraud

•     Pre- & post-employment screening

•     Law enforcement and security markets

 

Grid Technology

 

•     Complexity of clients’ existing infrastructure

•     Grid-based service-oriented architecture

•     Information storage requirements

 

 

Acxiom has positioned itself through key investments to take

advantage of these opportunities

 

8

 

 



 

 

Acxiom’s Share Price has Outperformed Market Indices and Peers Over the Past 3 Years(1)

 

                

 

Dun & Bradstreet

68.3%

 

 

Acxiom

45.3%

 

 

Harte Hanks

37.2%

 

 

NASDAQ

29.6%

 

 

S&P 500

29.3%

 

 

Equifax

28.9%

 

 

InfoUSA

27.4%

 

 

ChoicePoint

12.1%

 

 

Fair Isaac

2.2%

 

 

 

(1)

For the three years ending 7/6/06.

 

9

 

 



 

 

Acxiom’s Execution of its Strategy has Driven Superior Financial Performance over the Last Year

 

($Millions, Except EPS)

 

Revenue

YoY Growth

EPS

YOY Growth

 

 

 

 

 

 

Q1 – ’06

 

$310.3

---

$0.07

---

 

 

 

 

 

 

Q2 – ’06

 

330.5

10%

0.20

0%

 

 

 

 

 

 

Q3 – ’06

 

347.4

11%

0.31

29%

 

 

 

 

 

 

Q4 – ’06

 

344.3

7%

0.26

63%

 

 

 

 

 

 

2006

 

1,332.6

9%

0.83

12%

 

 

 

 

 

 

Q1 – ’07

(Analyst

333.6

8%

0.17

143%

 

consensus

 

 

 

 

 

estimates)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

 

10

 

 

 



 

 

Revenue Growth (Financial Road Map Mid Point)

 

($ Millions)

 

 

CAGR

Key Initiatives

 

 

 

 

 

 

 

 

•    Customized Enterprise-wide Services

•    Industry Specific Solutions

•    Digital Solutions

 

$

2,000

 

 

 

 

 

 

 

 

 

 

$1,864

 

$

1,800

 

 

9%

 

 

 

 

 

 

 

 

 

$

1,600

 

 

 

Marketing

 

 

 

 

 

 

9%

& CDI

 

 

•    Focus on Analytics

•    Building Consulting Practices

•    U.S. Data Growing at 11% CAGR

 

$

1,400

 

$1,333

 

Services

 

 

 

 

 

 

 

 

$

1,200

 

Marketing

 

 

 

 

 

 

& CDI

 

 

 

$

1,000

 

Services

 

 

 

 

 

 

 

 

5%

 

 

 

•    Deployment of the Grid

•    Avoid Commoditized Services

•    Optimize Capital Allocations

 

$

800

 

 

 

Data

 

 

 

 

 

 

 

 

$

600

 

Data

9%

 

 

 

 

 

 

 

IT/Data

 

$

400

 

 

 

Factory

 

 

 

 

 

IT/Data

 

Services

 

 

•    Extensive Cross-Sell Approach

•    Enhanced Product Set

•    Innovation and New Markets

 

$

200

 

Factory

 

 

 

 

 

 

Services

23%

Risk

 

$

0

 

 

 

Mitigation

 

 

 

 

FY2006

 

FY2010

 

 

 

 

11

 

 



 

 

Operating Income Improvement Through Revenue Growth and Expense Efficiencies

 

($ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

$

2,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

320

 

 

 

 

 

17%

$309

 

 

 

 

 

 

 

 

 

Margin

 

 

•      Workforce Initiatives

•      Computer Expense Focus

•      Standardized Processes

•      Leveraging Base Assets

$

280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13%

$242

 

 

$

200

 

 

 

13%

$186

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

$

160

 

 

 

 

 

 

 

 

 

 

 

11%

147%(1)

 

11%

 

 

 

 

 

$

120

Margin

 

$146

Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0

 

 

 

 

 

 

 

 

 

 

FY 2006

 

FY2007

 

FY2010

 

 

(1) Adjusted operating income is a non-GAAP financial measure. This measure excludes $15.8 million of restructuring changes and other unusual items.

12

 

 



 

 

Grid Positively Impacting Expense Efficiency

 

Computer and Related Expenses

(% of Revenue)

 

 

 

 

 

2003

31%

2004

26%

2005

23%

2006

22%

Return on Invested Capital

Road Map Midpoint

 

 

 

 

 

2003

6.1%

2004

9.4%

2005

11.0%

2006

11.4%

2010E

17.5%

 

 

 

 

 

•     100% of new services deals utilize the Grid

•     Data transformation throughput increased 2x

•     CDI processing speed increased 6.6x

•     Data products build time reduced 8x

 

 

13

 

 



 

 

 

 

 

 

 

 


 

 

Standardization Positively Impacting Efficiency

 

Average Cost per Customer Work Unit Processed

 

 

 

Avg. Q2 FY06

Avg. Q3 FY06

Avg. Q4 FY06

Avg. Q1 FY07

All Other Platforms

$142

$172

$123

$137

Standardized Platform

$32

$40

$25

$20

 

•     72 Services and 580 Data Clients on Standard Platform

•     35% of Customer Work Units Converted to Standard Platform

•     Associate Efficiency Improvement of 22%

 

 

 

14

 

 

 

 

 

 

 

 

 

 


Roadmap Upside Opportunities

Acxiom is focused on breakthrough opportunities to accelerate growth

 

Business Information Grid

•     $60B market not penetrated by hosted business

•     EMC brings R&D, brand and 7,500 sales people

•     $350M opportunity in 5 years

 

Digital Markets

•     Online advertising - $18B market growing at 30%
per year

•     Requires combination of data, analytics,
infrastructure and privacy knowledge

•     $100M – $200M opportunity in 5 years

 

Risk Mitigation

•     Additional $250M market in 5 years

•     Applications in account access, money transfer
and online access

•     $70M opportunity in 5 years

 

 

Geographic Expansion

•     Canada, Latin / South America, Asia Pacific

•     Leverage existing investments

•     $140M opportunity in 5 years

 

 

15

 

 



 

 

Acxiom Has a Highly Talented Management Team of Seasoned Industry Experts

 

Charles Morgan

CEO / Chairman of the Board

 

 

 

Operations

 

Finance

 

Corporate Office

 

Lee Hodges

COO

 

Frank Cotroneo

CFO

 

Cindy Childers

Organizational Development

Dathan Gaskill

Corporate Finance

 

Richard Howe

Marketing & Strategy

 

Client Services

 

Lines of Business

 

Delivery, Technology

and Support

 

 

Jerry Jones

Legal/Business Development

 

David Allen

European Operations

 

Ron Fournet

Risk Mitigation

 

Alex Dietz

Products & Infrastructure

 

Rodger Kline

Administration

 

Jeff Stalnaker

Financial Services

 

Scott Hambuchen

CDI & Marketing Services

 

Michael Lloyd

Delivery Center

 

Jim Womble

Business Development

 

Martin Sunde

Multi-Industry

 

William Park

Data, Digital & Direct

 

Thomas Walker, Jr.

IT Services

 

Kevin Zaffaroni

Strategic Initiatives

 

 

 

Holly Marr

Business Planning

 

 

 

 

o Foundational / Promoted from Within

o Professional Recruit / Acquisition

16

 

 



 

 

New Financial Leadership

 

 

•

In May 2006, Frank Cotroneo joined Acxiom as CFO

 

•

Frank was previously CFO at MasterCard International and H&R Block

 

•

In addition, Mike Durham, former CFO of American Airlines and Fortune 500 executive, has joined the Board of Directors and will focus on financial management and capital allocation

17

 

 



 

 

Financial Management and Control

 

 

•

New BOD Finance Committee

 

•

Improved Planning and Capital Allocation process

 

•

Process Ownership by CFO

 

•

Continuing Improvement in Financial Statement Transparency

 

•

Optimized Capital Structure

 

•

Metrics to Track Performance

 

 

 

 

Strategic

 

 

 

 

 

 

Performance Management

 

 

 

 

 

 

 

 

 

Tactical

 

 

 

 

 

Forecasting

 

 

 

 

 

Budgeting

 

 

 

18

 

 

 



 

 

Acxiom Has Not Ignored ValueAct

 

 

•

Adopted suggestion of Financial Road Map

 

•

Bolstered financial acumen for Board of Directors and management team

 

•

Listened and discussed ValueAct’s proposals at Board meetings

 

•

On multiple occasions, has invited ValueAct to present their ideas to Acxiom Board

 

•

Provided ValueAct access to Acxiom leadership

19

 

 



 

 

Acxiom Has an Independent Board of Directors

 

 

•

Acxiom’s Board of Directors meets all independence requirements

 

•

Two non-independent directors have resigned from the Board in the last 18 months

 

•

A new independent director has recently joined the Board, and brings substantial financial expertise

 

•

Created the role of Lead Independent Director and Vice-Chairman, Bill Dillard

 

•

Our nine-member Board has two management directors and one member who is non-independent solely due to a contract that ends in 2007 and provides him no financial benefit

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Why Charles Morgan Should Be Chairman

Acxiom’s shareholder value will suffer without his board leadership

 

Strategic Vision and Technology Development

 

•     Understands how innovation creates competitive advantage

•     Has driven development and deployment of breakthrough products and technologies

 

Deep Relationships

With Key Clients

 

•     Relationship owner for many top clients

•     Personal long-term relationships built on trust & commitment

•     Clear short- and long-term risk if Charles is not chairman

 

Highest-Level

Industry Relationships

 

•     Recognized as thought leader in direct marketing industry

•     C-level relationships with many large technology companies

•     Initiated and maintains critical partnerships

 

Attracting and Retaining Talented Management Team

 

•     Has attracted world-class additions to senior leadership team

•     Has nurtured and mentored strong internal leaders

•     Engenders strong loyalty among leaders, associates at Acxiom

 

Charles Morgan Is Clearly at the Foundation of Acxiom’s Success – Past

Present and Future

 

 

 



 

 

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Why Other Nominees

 

 

•

Ann Die Hasselmo – Independent Director

 

•

Clearly Independent – no business ties to the Company

 

•

Managing Director of Academic Search Consultation Services

 

•

Active leader in higher education at a national level

 

•

Past chairman of the board of National Association of Independent Colleges and Universities

 

 

•

William Henderson – Independent Director

 

•

Clearly Independent – no business ties to the Company

 

•

COO of Netflix, on-line DVD rental company with 4.2 million members

 

•

Former CEO and Postmaster General for US Postal Service – with more than 1 million employees and a $90 billion operating budget

 

•

Insight into mailing industry, a critical marketing channel for many of Acxiom’s clients

 

•

Significant experience in deployment of technology in a large-scale environment

 

•

Network of global relationships in industry and governments

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Why Not ValueAct

The issue is more than just board seats

 

 

•

Acxiom slate is comprised of the Company Leader and two independent directors who have no conflicts of interest

 

•

ValueAct has made an offer to buy the Company – we believe this makes the nominees unable to act as fiduciaries to other shareholders

 

•

Mr. Ubben also serves as a Board member of a direct competitor of Acxiom and ValueAct holds substantial ownership in that Company

 

•

These interests directly conflict with the interests of all other shareholders

 

•

We believe the strategic plan of Acxiom management will create more shareholder value than ValueAct’s short term objectives

 

•

ValueAct’s plan is uninformed and irresponsible, thus creating both near-term and long-term risk

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Why Not ValueAct (cont)

 

 

•

ValueAct’s nominees do not instill confidence

 

•

For example, in the 11 months Mr. Lawrie was the CEO of Siebel, 18% of shareholder value was destroyed (approximately $860 million), and at the same time he accepted approximately $10 million for his stark lack of performance

 

AND

 

•

While he praised a new CalPERS-instigated compensation plan at Siebel that tied options and bonuses to financial performance criteria (“I want to be known as a company that rewards and is managed by shareholders”), Mr. Lawrie never renegotiated his own compensation plan in the spirit of what he was having others do

 

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Summary

 

 

•

Acxiom will continue to deliver superior shareholder returns with execution of its current plan through a combination of:

 

•

Charles Morgan and current board leadership

 

•

Monetizing key investments

 

•

Sustained loyalty of clients and the management team

 

•

Acxiom has responded to ValueAct’s concerns about financial management and board structure

 

•

Introducing ValueAct into the Acxiom board will create both near-term and long-term risk

We ask for your support for the Company’s director nominees in the upcoming shareholder vote

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