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www.arinet.com. ARI Network Services, Inc. Annual Shareholders' Meeting State of the Business Presentation . . ARI Basics Update on Recent ChangesFinancial Results Report CardStrategy Overview and Outlook. www.arinet.com.
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1. www.arinet.com ARI Network Services, Inc.Annual Shareholders’ MeetingState of the Business Presentation ARI Basics + Update on Recent Changes
Financial Results
Report Card
Strategy Overview and Outlook
2. www.arinet.com ARI Basics + Update on Recent Changes
Financial Results
Report Card
Strategy Overview and Outlook
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“Be recognized as the leader in creating, marketing and supporting the best solutions that enhance revenue or reduce costs for our customers”
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Enhance your revenue
Reduce your cost
Increase your customers’ satisfaction
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Core Values - PRIDE Developed by New Mgmt Team Summer 2008. Replaces prior Values, which were:
Our integrity, ethics and fair dealings are second-to-none.
ARI is a terrific place to work, where employees feel they are part of a family-oriented team.
Our customers receive great products and service at a fair price.
We meet or exceed our financial and other commitments to each other, our customers, our business partners, and our shareholders.
We are a team, operating primarily through enablement rather than control. We manage our own issues, rather than delegate upward. We do what it takes to succeed as a team
We are process-oriented. We create, maintain and improve repeatable processes that produce quality results.
We develop innovative products by embracing technology in every aspect of our work and by maintaining customer intimacy
We communicate succinctly, clearly and completely both internally and externally, even when the news is bad. Management has an open door policy
We take responsibility for our actions and hold ourselves accountable for the results.
We are passionate about our customers, our products, and our company.
We seek continuous improvement in every aspect of our business.
Prior values were created from prior strategy document:
Excerpt from GJB Strategy Doc for FY2007
Our strategy calls for everyone we deal with…employees, customers, suppliers, partners, shareholders, acquired businesses and even competitors to believe our integrity, ethics and fair dealings are second-to-none. We want our employees to know and customers and shareholders to hear that ARI is a terrific place to work, where employees feel they are part of a family-oriented team. We want our customers to feel they receive great products and service at a fair price.
Also added ideas from RWO initial presentation to the “troops” as new CEO
Developed by New Mgmt Team Summer 2008. Replaces prior Values, which were:
Our integrity, ethics and fair dealings are second-to-none.
ARI is a terrific place to work, where employees feel they are part of a family-oriented team.
Our customers receive great products and service at a fair price.
We meet or exceed our financial and other commitments to each other, our customers, our business partners, and our shareholders.
We are a team, operating primarily through enablement rather than control. We manage our own issues, rather than delegate upward. We do what it takes to succeed as a team
We are process-oriented. We create, maintain and improve repeatable processes that produce quality results.
We develop innovative products by embracing technology in every aspect of our work and by maintaining customer intimacy
We communicate succinctly, clearly and completely both internally and externally, even when the news is bad. Management has an open door policy
We take responsibility for our actions and hold ourselves accountable for the results.
We are passionate about our customers, our products, and our company.
We seek continuous improvement in every aspect of our business.
Prior values were created from prior strategy document:
Excerpt from GJB Strategy Doc for FY2007
Our strategy calls for everyone we deal with…employees, customers, suppliers, partners, shareholders, acquired businesses and even competitors to believe our integrity, ethics and fair dealings are second-to-none. We want our employees to know and customers and shareholders to hear that ARI is a terrific place to work, where employees feel they are part of a family-oriented team. We want our customers to feel they receive great products and service at a fair price.
Also added ideas from RWO initial presentation to the “troops” as new CEO
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1981 Founded to provide electronic publishing services to the agriculture industry
1996 Evolved to equipment industry focus providing parts and service catalogs
2005 Expanded to technology-enabled marketing services
2007 Expanded e-commerce and professional services business with OC-Net acquisition
2009 Acquired Channel Blade Technologies and Powersports Outsourcing Group
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High Level Product Categories
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Ensures website is seen on all the major search engines
Customer chooses relevant keywords
Customer selects geographic coverage desired
ARI ensures site is advertised within those parameters
Numerous reports available to determine campaign effectiveness
Campaign can be changed at any time
Ad dollars are stretched based on results!
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Awards and Honors Our products have earned numerous awards from the publications in our primary markets. Our products have earned numerous awards from the publications in our primary markets.
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Channel Blade Acquisition
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PSOG Acquisition
18. www.arinet.com ARI Basics + Update on Recent Changes
Financial Results
Report Card
Strategy Overview and Outlook
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FY09 vs. FY08
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Q1-2010 vs. Q1-2009
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Financial Results: Revenue Growth
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Financial Results: Operating Income
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Financial Results: EBITDA
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Financial Results: Net Income
25. www.arinet.com ARI Basics + Update on Recent Changes
Financial Results
Report Card
Strategy Overview and Outlook
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Valuation
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FY09 Report Card Key Initiatives for Last Year (FY09)
Simplify Business
Target our Development Efforts
Move the ARI Culture Forward
Product Road Maps
Improve Internal Processes
Define Sales Strategy
Acquisitions
Organic Revenue Initiatives
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Key Initiatives Progress Simplify Business:
Outsourced CD Processing
Outsourced Manual Data Conversion
Consolidation of Publishing & Development
Organizational Structure – Clear lines of Reporting
Target our Development Efforts :
Clarified Development Team’s Focus
Four Teams:
ARI Products
Professional Services
Website Development
Application Development Support (Temp)
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Key Initiatives Progress Move the ARI Culture Forward :
Vision and Values (PRIDE)
Senior Leadership and Director Level
Creating a Culture of Accountability
Invested in People & Training
Headquarters Move
Renewed Excitement
Contemporary “feel”
Focus on Innovation (New Products)
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Key Initiatives Progress Product Road Maps :
Product Steering Committee
Narrow/Deep Focus on current Verticals
Must help ARI customers move Products/Services
Product Management Team Formed
Launched New Product Development Process
Launched Two New Products
PartStream
Search Engine Smart
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Key Initiatives Progress Improve Internal Processes :
New Product Steering Committee
New departmental budgeting process and accountability
Agile development process
Improved Order Processing
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Key Initiatives Progress Sales Strategy :
Deployed New Sales Structure and Process
Account Manager Implementation
Dedicated Catalog Sales Team
Vertical Focus on Marine with Channel Blade Team
More Markets
Narrow/Deep Industry Focus
18% NCV Growth over FY08
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Key Initiatives Progress 7. Acquisitions:
Integrated Info Access Acquisition
Acquired and began integration of Channel Blade
Acquired F&I Business
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Key Initiatives Progress 8 FY09 Revenue Initiatives
4 out of the 8 Initiatives generated the following results:
$1.2M in NCV in FY09
$515K in Revenue in FY09
Resulting in additional focus on Organic Revenue Initiatives for FY10
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Financial Results
Report Card
Strategy Overview and Outlook
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Strategy Summary
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FY10 Key Performance Indicators Achieve Sales Objectives
Increased Team Activity/Productivity
Cross Sell Channel Blade/ARI Products
Add new Customers
Products
Execute on Product Road Maps
Create scalable “global” platforms
Hire/Retain the Best People
Continue to invest in Training/Skill Development
Focus on recruiting leadership excellence at all levels
Customer Retention
Improve Customer Service/Satisfaction
Improve IT Infrastructure
Improved Average Revenue per Customer
Cost Control
Complete Acquisition Integration plan
Drive down overall cost structure
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Q & A
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Thank You!