Distripress Forum Day Presentation. October 1, 2012

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1 Distripress Forum Day Presentation October 1, 2012 October 2012

2 MagNet History q Magazine Information Network formed in 2000 by the major US wholesalers q Currently owned by twenty US wholesalers q Marketing agreement with all Canadian wholesalers to collect and market their data q Initially outsourced IT and marketing services to 3 rd parties q 2007 Signed direct agreements with major US national distributors to provide consolidated monthly feeds q 2008 Brought all IT and operational functions inhouse q 2008 Purchased ICN system from Source Interlink Companies q 2009 Developed MagNet BI Web Portal MagNet

3 MagNet Formation 2000 q Purpose To secure wholesalers data and establish ownership q Publishers and national distributors always accepted that data belonged to wholesalers q Wholesalers historically provided supplier field reps with both their title and comp. title info q Suppliers collecting information from individual wholesalers and consolidating it internally q Third party company attempted to influence retailers to claim wholesaler data as their own for their stores information q Legally determined q Wholesaler data belonged to wholesalers q Retailer POS data belonged to retailers MagNet

4 MagNet BI System Highlights q Daily updates of wholesaler distribution data q Store level allocation, return and sales q 100% of US and Canadian Markets q Active 3 years of distribution data for 125,000 retail accounts, and 8,000 titles q Each retail store given a MagNet unique ID q Bulk wholesaler records and supplier accounting data for auditing and validation purposes q Daily and weekly POS information received from retailers representing 45% of the US market q Automated auditing process to ensure that data is accurate MagNet

5 MagNet BI System Highlights q MagNet is recognized as the industry s central repository for wholesaler and retailer information q Newsstand Industry Resource Center (NIRC) q Wholesaler allocation and sales information q Retailer POS information q Chain authorized title lists q Chain title sales ranking reports q Checkout fixture plan-o-grams q Chain RDA sales information q Checkout title pocket counts q Cover analytics covers of every issue of 2,500 titles scanned and indexed by sales MagNet

6 Cover Analytics MagNet

7 Cover Analyzer Report MagNet

8 Current Channel Member Applications q MagNet s centralized database offers channel members several advantages q Suppliers can access title and store information across every wholesaler or retailer in the US and Canada from their office q Having competitive title information and analytical reports provides sales and expansion opportunities quickly q More timely aggregated information allows publishers to forecast future copy needs quicker q Wholesalers, retailers and publishers can use our system to benchmark their performance against their collective peers q Consolidated title sales information makes reporting to clients and retailers more efficient q All suppliers and wholesalers reporting consistent sales information to retailers MagNet

9 New Developments q MagNet developing AIMS- q Allotment Intelligent Management System q Changes the paradigm of how allotments and distributions are done q Set allotments using bottoms up approach q Automates the distribution process utilizing wholesaler formulas, store level authorized lists, promotions, etc q Title distributions completed and allotments set across all wholesalers in less than ten minutes q Save suppliers time, effort, and personnel costs q Standardizes the process MagNet

10 Central Data Repository Advantages q Other countries should consider the central data repository approach q More actionable information = Better decisions q Consolidated and timely information provides suppliers and wholesalers with the opportunity to: q Become more efficient and effective q Reduce personnel and unsold copy costs q Utilize consistent data in analyses and reports q Grow sales and improve profitability q Data ownership is less important than the value gained by all parties q With declining sales, wholesalers and suppliers need to work smarter q Use all available information, systems and technology to find opportunities for greater sales and profitability MagNet

11 Gil Brechtel President, CEO MagNet 3501 N. Causeway Blvd, Suite 308 Metairie, Louisiana Office Cell Fax MagNet: Transforming Data Into Information

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