by 11.5% at constant rates to EUR 137.5 million due to a contraction in client spend, mainly in the ﬁrst half of the year.

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(2) About us. LBi is a global digital marketing and technology agency, blending insight, creativity and expertise to solve business problems. The largest genuinely full service agency of its kind in Europe, LBi provides the full range of digital capabilities, including digital strategy, branded content, service design, media, CRM, technology, managed hosting and support services. The Company employs about 1,400 professionals located primarily in the major European, American and Asian business centers; such as Amsterdam, Atlanta, Berlin, Brussels, London, Milan, Mumbai, New York, Paris and Stockholm. LBi is listed on Nasdaq OMX in Stockholm and NYSE Euronext in Amsterdam.. The year in brief Key financials for the year ě by 11.5% at constant rates to EUR 137.5 million due to a contraction in client spend, mainly in the first half of the year.. Net sales for the year at constant rates decreased by 11.5% reflecting the adverse effects of the global economic crisis. MEUR. 137.5. ě ģľŅĆľ a decrease of 10.6% at constant rates, while margins were well protected at 13.1% (12.4%), due to effective restructuring and increased focus on retained global strategic engagements.. EBITDA adjusted* came in at EUR 18.1 million (19.9), reflecting well protected margins at 13.1% (12.4%), due to effective restructuring and increased focus on retained global strategic engagements. Good operational cash flow of EUR 13.0 million (20.3) given the current economic climate. 13.1%. 13.0. MEUR. * EBITDA adjusted excludes EUR 4.7 million restructuring costs and EUR 0.5 million related to prior years divestments and liquidaitions. Contents CEO message ..................................... 2. LBi employees ................................... 10. Market ............................................. 18. LBi services ........................................ 4. Introduction to case studies .................. 12. Corporate Governance ........................ 20. Spotlight: .......................................... 6. – Three olives vodka ............................ 13. Internal control ................................. 25. – Media ............................................. 6. – FBTO health insurance ....................... 14. The LBi share .................................... 28. – ePR and social media .......................... 6. – BT Tradespace ................................. 14. Board of Directors ............................... 32. – CRM content .................................... 8. – Zwitsal Group .................................. 15. Management .................................... 33. – Dashboard ....................................... 8. – Philadelphia .................................... 16. Shareholder information ..................... 34. – British Red Cross .............................. 16. Definitions ...................................... 35. – Electrolux ....................................... 17. Glossary .......................................... 35. ě. LBi 2009.

(3) LBi to merge with Obtineo – February 2010 ě Sound financial performance in an unprecedented and challenging environment fuelled by the credit crunch.. On 25 February 2010 LBi announced the merger with Obtineo to create Europe’s largest marketing and technology agency. Obtineo is a combination of Bigmouthmedia, the largest search engine marketing specialist in Europe, and EUR 40 million of new capital committed towards global expansion of the combined entity. LBi and Obtineo’s Boards of Directors and Executive Management expect the merger to be finalised by July 2010. The merged entity, which will trade under the name LBi, will be a Dutch N.V. with a single listing at NYSE Euronext Amsterdam and is expected to be listed in July, 2010. Upon completion of the merger, the shares in LBi will no longer be listed on Nasdaq OMX Stockholm.. ě Continuing to track well against strategic plan with a further move up the marketing value chain and broadening of our full service offering in the US, UK and Asia. ě ĿĽľĽ Ĉ pany forming Europe’s largest marketing and technology agency.. ě ĀľŀĆĽ (20.3) given the current economic climate. Net debt in line with previous levels EUR 19.0 million (20.3) as a result of the financing of acquisitions (payments of earn out obligations that fell due during 2009).. ě ŃŀĆŅ ă affected by a one off impairment of EUR 68.9 million related to goodwill, other intangibles etc, related to acquired entities, mainly the Framfab LB Icon merger in 2006 at the height of the market.. Net sales, MEUR. Operating profit, MEUR. Cash flow from current operations, MEUR. 20. 200. 20. 0. 150. 15 –20. 100. 10 –40. 50. 5. –60. 0 2005. 2006. 2007. 2008. 2009. The Annual Accounts and the consolidated financial statements 2009. –80. 2005. 2006. 2007. 2008. 2009. 0 2005. 2006. 2007. 2008. 2009. – Consolidated Cash Flow .................... 49. – Changes in Parent Company’s Equity .... 55. – Supplementary Information to Consolidated Cash Flow Statements .... 49. – Accounting policies .......................... 56. – Report of the Board of Directors .......... 38 – Consolidated Income Statements ........ 44. – Changes in Consolidated Equity .......... 50. – Notes ........................................... 62. – Consolidated statement of comprehensive income ..................... 44. – Parent Company Income Statements .... 51. – Audit Report .................................. 82. – Consolidated net revenue and profit ..... 45. – Parent Company Cash Flow Statements ................................... 54. – Consolidated Balance Sheets .............. 46 – Financial position – Group ................. 46 – Consolidated Cash Flow Statements .... 48. – Notes – contents .............................. 61. – Parent Company Balance Sheets ......... 52. – Supplementary Information to Parent Company’s Cash Flow Statements ....... 54. ě. LBi 2009. Five-year Summary ............................ 83 Offices and contacts ........................... 84.

(4) 2 CEO Message Protecting margin in an unprecedented and challenging environment 2009 was of course a challenging year. The severity of the credit crunch drove a contraction in client spend across most of our key service lines. It was immediĈ ately apparent that negative sentiment was going to throttle the top line for at least a year and as a consequence we immediately removed approximately 150 FTE’s in the Central European and Ĉņ the global headcount. As a consequence of this restructuring the new organisaĈ tion was properly right sized to deliver a good EBITDA performance. In the second quarter, we continued to experience further pressure on the top line;. better positions us for long term sustainable. ships for many years and has all the capabili-. top line growth as markets further recover.. ties to drive forward our services to support. If we look at our full year performance and exclude the impairment related to good-. large, international brands. We also made good progress in the con-. will, other intangibles etc, related to. tinued evolution of our creative and plan-. acquired entities, mainly the Framfab LB. ning capabilities. We attracted top talent at. Icon merger in 2006 at the height of the mar-. a senior level to the agency, most notably. ket, we ended the year with group results. Dutch advertising creative legend Maarten. that reflect the significant progress we have. van de Vijfeijken who joins as ECD the. made at both a management and opera-. Netherlands from BBDO and our new Global. tional level across all our key markets. At the. Head of Planning Jonathan Isaac, who joins. same time, we have extended our service. from Another Anomaly and whose pedegree. offering and further improved the quality of. includes a period at Goodby, Silverstein &. services, both of which have contributed to. Partners where he developed the legendary. the gradual recovery of our group EBITDA. the Computer is Personal Again work for HP.. margin to pre-crisis levels.. We now have a demonstrable best-in-class. Continuing to track well against our. offering in online advertising across all our. mainly as a consequence of the marked. strategic plan. Despite the disruptive. key hubs, and enjoy lead creative agency. slowdown in decision making on the client. economic climate we managed to track. status on Puma globally and in many of. side. Despite these continued adverse mar-. well against our strategic plan throughout. our clients in the Netherlands including. ket developments, we were able to protect. the year. We further evolved our full service. insurance giant FBTO and children’s care. our operational result and reported a strong. offering in the UK, US and Asia and continued. brand Zwitsal. We again won several major. sequential underlying margin improvement. to move further up the marketing value chain.. creative and effectiveness awards, including. in the second quarter. In the second half of the year demand for our services gradually increased and sig-. We specifically expanded our global media, SEO and CRM business units. This was done in response to huge. a particularly good showing at the London International Advertising Awards for Electrolux, British Red Cross and Nike. In the. nificantly we booked strong operational. demand from brands wanting to create. UK we won the Best B2B campaign at the. progress and growth in our key markets, the. more effective ways to manage and facili-. prestigious Revolution Awards for our. UK and the US. Performance in our Central. tate profitable relationships with their. Generation Green and the eco rangers game;. European and Nordic markets remained. customers in today’s more socially connec-. an example of digital branded content being. more hesitant, but although sentiment. ted world. We have successfully fused. used to reach 11 million school children. In. remained fragile there was nevertheless a. together both traditional CRM and ”social. Sweden, we won the People’s voice award in. strong pick up in the new business pipeline. CRM” thinking to deliver a fresh approach to. Interactive Advertising at the 13th Annual. pointing to a confident performance in. CRM strategy and implementation and pro-. Webby Awards with the HELLO FRA cam-. 2010.. gramme management, communications. paign that introduced digital disobedience. and data planning, multi-channel campaign. to the net. It was hailed as the ”Internets. course of the year illustrates the effective-. design and management, customer data. highest honour” by the New York Times,. ness of the restructuring and legitimizes. management and hosting.. 500,000 people vote for their favorite web-. Our improved operating result over the. our increased focus on margin and retained. As it is crucially important that our servi-. sites, videos and ads. In the Netherlands, we won a SAN. global strategic engagements. We continue. ces strategy and offering is informed by a. to prioritise relationships that deliver long. deep understanding of clients and their. Accent award for the ’Hello Amsterdam’. term visibility, where we have the opportu-. needs, we also appointed Alan Davies as. campaign developed for Vodafone. The cam-. nity to manage the entire digital channel,. Chief Strategy Officer.. paign was aimed at recruiting 250 top. thereby improving the quality and stability of our earnings. We believe that this strategy. Alan has been at the forefront of our most important strategic client relation-. ě. LBi 2009. talents for Vodafone’s new head office in Amsterdam. The campaign resulted in an.

(5) 3 impressive 4,500 CVs being received, in a. ing company, Bigmouthmedia and sizeable. market known for its difficulty in finding the. new funding. In the combined firm we will. right candidates. All the vacancies have. have over 1,600 people across 15 countries. been filled rapidly. Lastly, LBi topped the. with annual 2009 turnover of around €170. NMA Top 100 Interactive Marketing Agen-. million. The new merged entity will be head-. cies 2009 as the UK’s number one digital. quartered in Amsterdam and will obtain a. marketing agency, an achievement we can. new primary listing on NYSE Euronext in. be proud of.. Amsterdam.. At least as important as project wins. This merger will enable us to offer our. from new and retained clients and the. clients digital marketing, consulting and. further development and expansion of our. technology services wherever they operate,. service offer, we also kept track on social. all under one roof. The new combination also. media development and innovation and. solidifies our position as the European leader. made sure we were leading the charge in a. and enables us to strengthen our reach in the. year when social media went mainstream,. US, Asia and MENA. We are now well placed. delivering social media strategies for many. to take advantage of the irreversible spen-. of our global accounts, and seeing signifi-. ding shift to online channels.”. cant demand for our integrated Creative, EPR, SEO and social media offering.. April 2010. Championing some of these key trends, Chief Creative Officer Chris Clarke, kicked off the Cannes Lions International Festival Seminar programme this year. Chris’ presentation, ’The death of the creative director’ spoke about the consumer taking control and agencies’ need to reach those consum-. Luke Taylor. ers through their networks with clever tools,. CEO and President. content and services which make a differ-. LBI International AB. ence and improve people’s lives. Doing this effectively calls for collaboration, openmindedness and a feel for technology, which is radically shaking up the structure of agencies around the world. We are of course proud to be leading the way with an agency model designed for these new times. Going forward as a new merged company in 2010. After year-end, we announced the acquisition of Triple Copenhagen as a further step in our plan to revitalise top-line growth for the entire Nordic region. Most notably however, we also announced that LBi and Obtineo will merge to form Europe’s largest marketing and technology agency. Obtineo will deliver Europe’s pre-eminent search engine market-. ě. LBi 2009.

(6) 4 LBi – services We think it’s fair to say we now live in a digital world. The Internet changed the relationship between people and information, and revolutionised the relationship between people and brands. Old approaches to marketing just don’t cut the mustard with consumers anymore. We think the biggest issue for brands these days is believability. It’s not good enough to demonstrate your proposition in advertising, you have to prove your value every day in demonstrable ways. That’s why LBi exists. We’re a marketing and technology agency with the ability to manage brands digitally throughout the entire customer journey. We call it Building Believable Brands. That means we’re set up to develop big creative ideas in the digital space, build and manage complex transactional websites, run complex CRM programmes, and even handle the media buying, planning, and EPR for blue chip companies. That’s why we have 1,400 people working in our offices around the world. You just can’t be credible across all those services if you’re any smaller than that.. LBi has global operations with 24 offices in 13 countries and employs over 1,400 professionals. ľăŃĽĽ. ě. LBi 2009.

(7) 5 CUSTOMER ACQUISITION SERVICES. CUSTOMER ENGAGEMENT SERVICES. Social media/EPR. Brand campaigns & experiences. Social media is a bit of a buzzword. Really it’s just PR. And we have that at LBi too. When integrated with our creative offering, we can help ideas to travel for free in the social media maelstrom.. We deliver all manners of digital creative stuff from online display, to viral campaigns, games, events and branded entertainment.. Multichannel innovation. Based in London and Exeter, we have one of the most comprehensive SEO and SEM offerings in the market.. We have a long heritage of experimenting with emerging channels. We’re able to think across boundaries innovating for multiple screens from mobile to microsoft’s new surface table.. Display media. Transactional systems. Our team of 60 media professionals covers digital planning and buying for top brands like M&S and Starwood Hotels. And because we charge a fee rather than taking percentage of spend, we can advise our clients on earned media alongside the stuff we help them buy.. With one of the most robust technology offerings of any agency in our space we are able to build complex systems for retailers, banks and government.. SEO/SEM. CUSTOMER MANAGEMENT SERVICES Application support and hosting. CRM/data. Content support. How do you manage thousands of conversations? That’s the question at the heart of our CRM offering. With deep technology expertise and strong strategic grasp of conversation marketing, our team helps simplify this complicated area.. So many websites fail when business can’t find the time and recources to keep content fresh. Our experts are able to take that problem away from clients, ensuring that when a customer conversation starts, it can be kept going.. ě. LBi 2009. Many of our clients have massive data requirements and business critical systems wich need 24/7 support. Our team is trusted by Unilever and F1 amongst others to keep the critical web services in peak form..

(8) Ń Spotlight:. Media. Caroline McGuckian Global Head of Media. 2009 is notable as another year of progress. nise the incremental benefits of “joined up”. recommendation as we move through 2010.. for LBis media offering, despite difficult. acquisition and conversion activities.. Finally robust data driven optimisation and. economic circumstances it continues to. Social media and digital pr have gathered. understanding of acquisition journeys have. pace as expected and LBi leads the way in. produced some incredibly rich data and. integrating bought and earned media solu-. insight through the LBi dashboard product.. approach to media has resulted in clients. tions for Starwood hotels EMEA and the. We have increased the investment in talent. like Disney continuing to support our com-. award winning work for British Red Cross .. through the recruitment of Marika Tasic in. bined approach increasing their retainer to. Anticipated trends include the increased. LBi Germany and Miriam Martinus in. incorporate analytics and studio services.. demand for mobile marketing skills and a. Amsterdam to further enhance our media. The relationship between media analysis. deepening understanding of how bought. strategy capabilities and work with our full. and on site data has proven invaluable for. and earned media work together to influ-. service clients to incorporate media thinking. clients like Mark and Spencer as they recog-. ence peer to peer communication and brand. into their digital plans. This has resulted in. flourish. Championing our integrated. ePR and social media Jason Klein co-CEO LBi Special Ops Media. 2009 saw a number of changes to the way marketers spend their advertising budgets. Forced by both economic facĈ Ĉ ă þĈýĈ tive ways to reach their target. Certainly ĈĈ media. With Facebook numbers increasĈ ing by the day, bloggers replacing ediĈ tors, and any message boiling down to 140 characters, ePR (electronic Public Relations) and Social Media expertise became a must for all brands. Call it ď ĐăĈĈă “buzz”, or viral marketing—these servĈ ices took center stage in comprehensive. digital marketing campaigns. In fact, they provided some of the strongest ROIs in the LBi service offering suite and proved a critical piece of clients’ distriĈ bution tactics for marketing and comĈ munications messages.. ment, allowing brands to live in a space where the consumer feels given to instead of marketed at. Various items such as screeners, DVDs, CDs, short-form digital video clips, and product samples are distributed to thought leaders, bloggers, and editors to drive reviews, premier content placement,. At its simplest, ePR is an analog to tradi-. and site and content integration. To rein-. tional public relations; teams of digital. force the brand message, ePR specialists. publicists leverage existing content and. also coordinate talent interviews with. assets with their editorial relationships to. actors, musicians, directors, authors, brand. secure non-paid, integrated placements on. ambassadors, and field experts.. websites, blogs, social networks, and other. In response to the enormous growth. relevant digital platforms. Beyond tradi-. of social media – particularly on outlets. tional PR, this digital medium reveals a. such as Facebook and Twitter, marketers. unique opportunity for access and involve-. continue to look to agencies for expertise. ě. LBi 2009.

(9) 7 many multimarket engagements with exper-. client relationships with our Syrup colleagues. the product launch, cpc advertising with. tise from across the network being deployed. like Clinique and the appointment of LBi UK as. TiVo and some early experimentation with. as appropriate in the SEO, PPC and media. the media partner for the Conservative Parties. audio advertising.. planning and buying space. As our global. General Election plans. Our Berlin team is suc-. boundaries continue to blur we have wit-. cessfully progressing their service expansion. all of our client engagements we are hugely. nessed a lot of cross border collaboration with. plans with social campaigns for Sony as well as. excited about the opportunities our com-. Nokia and GARP operating in multimarket ter-. winning the Nuon affiliate marketing cam-. bined proposition offers to our clients in. ritories and many of our Italian clients being. paign and launching some of Germanys earli-. 2010.. supported both locally through Milan and. est mobile marketing initiatives.. from our London hub for multimarket work. We expect this pattern to be repeated in 2010. Significant wins in 2009 include our. Once again LBi has led the way with media innovation in the form of a strong relationship with Facebook allowing them to. appointment as Moneygram Media AOR, new. launch fan friend targeting within 24 hours of. and guidance to market within these plat-. parenting, politics, gay/lesbian, and every-. forms. Fortunately, the LBi social media. thing in between.. offering is far ahead of the curve with nearly. The offering has continued to expand. eight years of experience in the space—in. and develop across the network, provid-. fact longer than the actual term “social. ing new revenue streams and critically impor-. media” even existed. LBi social media. tant services for LBi’s clients across the globe.. experts develop strategies and then build,. Forrester Research predicts 34% annual. maintain, and update brand pages, while. growth in social media spend through 2014;. recruiting users who might be interested in. ePR and social media are truly defining com-. the product or brand. In 2009, in the US. petitive differentiators and already proving. alone, LBi debuted the first ever “live-tweet-. crucial components for major pitches and cli-. ing” of a TV broadcast for a major sporting. ent work.. event on Spike TV (a Viacom company) as well as the first ever “twitter-view” with the stars of Ang Lee’s film, “Taking Woodstock.” Much of this exciting growth and market leading expertise was fueled by the 2008 acquisition of Special Ops Media in NY, a long-established and recognised leader in this space. Through the acquisition, Special Ops brought a number of years of experience in ePR and Social Media including their builtfrom-scratch database of over 13,000 websites and blog editors across special interest categories such as male and female lifestyle, design, film/music/entertainment, religion,. ě. LBi 2009. In placing media thinking at the heart of.

(10) 8 Spotlight:. CRM content – from acquisition to advocacy 2009 saw our CRM capability go from strength to strength; winning new clients such as BT Tradespace and BarĈ ratt Developments, developing existing client accounts like Electrolux, bringing new talent into the team, and developĈ ing a significant pipeline of opportuniĈ ties going into 2010.. CRM ascended most clients’ agendas in. This, together with what Forrester called. 2009, with the recession reminding compa-. “the most profound evolution the marketing. nies that understanding and managing prof-. world has seen in fifty years or more”, saw. itable customer relationships is a business. greater demand for a more innovative. priority. CRM also offers a level of accounta-. approach to developing CRM and communi-. bility favoured by clients when marketing. cations strategy coupled with a more prag-. budgets are squeezed and greater focus is. matic approach to implementing CRM solu-. placed on accountability and return on. tions. Specifically, we’ve witnessed a grow-. investment.. ing client demand for:. Dashboard Actionable intelligence Following on from our successful DashĈ board Beta programme in 2008, the goal of 2009 was to begin to commercialise the LBi Digital Dashboard by introducing it to our top accounts globally.. ability, greater transparency of spend and. and the pressure on our clients to show real. the ability to show return on investment.. results, we hit upon a winning formula with. Our clients were crying out for a solution. the LBi Digital Dashboard.. The first half of the year, of course, presented. had shown us the importance of speed. been busy rolling out implementations in all. the most challenging economic climate that. and simplicity, both in the application itself. of our key territories. In the UK, Marks and. we’ve seen in many years. Although we. but most importantly in set-up and roll-out.. Spencer has built the Dashboard into the. feared that our timing could not have been. We spent a great deal of effort in Q1 stream-. heart of its e-commerce organisation and. worse and that it really wasn’t the right envi-. lining the application and surrounding pro-. we were particularly excited to see Volvo. ronment into which to launch a new prod-. cedures to allow us to bring new clients on. adopt the LBi Digital Dashboard across all of. uct, we actually found that these new, chal-. board with minimal lead time, disruption. its European trucks divisions. In the US, our. lenging conditions required greater account-. and cost. With new budgets hard to come by. commitment to transparency and measure-. that allowed them to make better use of data within their organisations. Our early trials and Beta programme. ě. LBi 2009. Over the course of the year we introduced the Dashboard to a significant proportion of our top global accounts and have.

(11) 9 with consumers that CRM has long aspired. technology specialists to work together to. not just improved, but quicker return on. to. So a combined “social CRM” approach. define the desired end-to-end customer. investment. This is understandable, against. makes a lot of sense, especially in a world. experience. This proprietary tool is seeing. a rapidly changing marketing landscape,. where peer-to-peer content often has more. widespread use across our key clients. but proves challenging for larger-scale CRM. impact and believability than a brand’s care-. including Electrolux, BT Tradespace and. investments. Clients value a practical,. fully crafted marketing messages. There are. Barratt Developments.. phased approach that’s based on sound. so many different ways to communicate. Looking forward, 2010 will see continued. business modelling which helps them get. with a customer, and so many ways a cus-. demand and more integrated digital and. the most out of their existing CRM infra-. tomer can communicate with (or about). CRM client briefs. We will continue to. structure and incrementally build and. brand; ensuring they are feeding into each. embed CRM thinking into all our top. improve their capabilities.. other is essential, so that the optimal mes-. accounts, develop packaged services that. Accountability: Clients are looking for,. sage is sent to the right customer at the. help our clients see quicker and better. paigns, programmes and platforms all have. right time. Clients are looking for a joined-. return on investment, and increased inte-. a role to play (and objectives to fulfil) but. up approach that connects outbound mes-. gration of mobile, social and emerging. must work seamlessly together to deliver a. saging, with sales, customer service, and. media into customer communication. streamlined, end-to-end customer journey.. even human resources, - to ensure the. strategies.. CRM (and data) is the glue that binds these. brand communicates effectively in every. elements together. Clients are looking for. consumer interaction, every tweet, and. an integrated, multi-channel approach to. every touch point.. Multi-channel integration: Cam-. communications planning and customer experience management.. In response to these continuing trends, we’ve created a collaborative planning tool,. Social CRM: Social media offers the. the LBi Communications Framework, that. kind of direct engagement and interaction. enables our strategic, creative, media and. Dashboard supports LBi’s commitment to. Pipa Unsworth CRM Practice Director. In parallel to the technical deve-. actionable intelligence. In support of this we. lopment of the Dashboard, we have. launched a conversation management mod-. strengthened our deep analytical skills.. ule for the Dashboard at the start of Q3. This. On the back of the transparency that the. allows our clients to interact with each other. Dashboard provides, we have been increas-. as well as the data and, ultimately, helps. ingly working with our clients to provide. drive action and change in their business.. data and analytics support services to help. With additional functionality in the Dash-. interpret the data, test possible solutions. board document library and significant. and make operational changes in real time.. enhancements to the interface among the. We are very excited about the work that this. ment has been rewarded by contracts with. many new features that we rolled out. team has been doing and the impact that it. Bayer Cropsciences and Newell Rubbermaid,. through 2009 we have moved the LBi Digital. is having on our clients’ businesses. As we. and the first multi-language dashboards. Dashboard even further ahead of the field.. move into 2010 we will grow these services. were created for the German market. We. With our Software As A Service (SaaS) model,. further with our clients and, with the Dash-. continue to work with Etihad in the Middle. we are delighted to say that all of these new. board at the fore, we will bring actionable. East and, as 2009 closed, were in the process. developments are immediately available to. intelligence to the heart of our service. of extending the Dashboard to cover more of. all of our clients — current and future.. offering.. its international operations. In fact, the demand and enthusiasm. We continue the migration of our media clients onto the Dashboard platform and. shown by our clients has encouraged us to. look forward to the cessation of off-line. continue our substantial development pro-. reporting with significant improvements to. gramme and we were delighted to be able to. productivity and the sophistication of our. introduce significant product features. analysis.. Alan Davies Chief Strategy Officer. through the course of the year. The Digital. ě. LBi 2009.

(12) 10 LBi Employees. Insight, creativity and expertise. What do you stand for? At LBi we stand for many things. Probably the most impor-. Sukhi Pabial Training & Development Manager. tant is collaboration. We work together in blended teams to create and innovate. We take individual talents from different disciplines, put them together, throw in some good. The best part of my job is being able to see the results the training has on what these fab people do. Creating and delivering courses that meet their needs is what it’s all about.. strategic thinking and the rest is chemistry. We also stand for building believable brands; a new attitude to marketing and technology. We stand for our values; provocative, expert and collaborative. And we stand for career development through continuous learning. That means you’ll be honing your skills in a new technology one minute, learning about social media the next or brewing beer in the basement all in the space of a week. The energy needed in a business which has to change constantly is incredible. Thankfully we have more than our fair share of incredible people to help us adapt and succeed.. Total employees end of period* Creative / User Track. 635. Technology. 379. Managed Services. 88. Experienced architecture. 10. Client Services Strategic & Planning Media. 7 13 29. Support service & Mgmt. 17. Administration Total employees end of period. . 1. Project Management Sales. All employees by education.

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(14) . 69 149 1 396. *The numbers do not include BMM and Triple. ě. LBi 2009.

(15) 11 Mia Hultman HR. I left LBi for a while to seek new challenges, but I got homesick. It’s all about the people and the inspiring work environment. LBi is just a great place to work.. Judith Carr Managing Director, LBi US. 8 years, 4 months, 11 days: the LBi life is always funny, challenging and motivating! I hope for many more years!. Filippos Arvanitakis Creative Director. I like the smell of LBi in the morning.. All employees by age and sex. All employees by employment time and sex.

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(17) . ě. . . LBi 2009. .

(18) 12 Creative excellence. Introduction to case studies Nobody would argue 2009 was an easy. new Zwitsol site essentially delivering the. year. Most of our clients were under. “We Know How it Feels” message through. unprecedented pressure to cut costs and. content and tools.. justify every penny of spend. And as the. The Nordic region was hit harder than. smoke rose from the tall buildings to the. most by restricted spend in 2009, with. East and West of our Brick Lane office,. Copenhagen suffering at the hands of Nike’s. the staff of LBi braced themselves for a. decision to move out of Europe. Nonethe-. year likely to be remarkable only for. less, the Nike Debacle Film shows what we. struggle and pain. The reality turned out. can do with branded content even on a tiny. to be a bit different. Yes we had to. budget, and it won deserved awards. We. absorb our share of the economic woe,. truly have some of our very best talent in the. but the year was characterised by our. Nordics, and this is in evidence in the work. refusal to go with the mood of the Zeit-. produced for Etihad in Copenhagen, Hello. geist. We forged ahead, producing some. Fra from Syrup Stockholm and the way in. brave and eye-catching work bringing. which Goteborg supported their iconic auto-. social media, offline advertising and. motive client Volvo during the automotive. powerful service design together in a. industry’s annus horibilis.. way which only LBi can.. One area that saw a big uplift in demand was mobile. We began work on top secret. Notable cases from the year include the. projects for the world’s preeminent motor. beautiful award winning D&AD I’ll be there. sports brand, LBi Germany brought recipes. campaign, which saw us collaborate with. to iPhones around Europe for Philedelphia. superstar photographer Nadav Kandar. In. and around the network, the smallest screen. the charity sector, we scooped a fistful of. became a big focus.. gongs for British Red Cross with the Look. 2009 also saw some great talent join the. Behind the Label campaign fusing our EPR. agency, especially in our rejuvenated LBi. and social media expertise with a powerful. New York where ex-BBH and Your Majesty. but simple creative idea. Another case of. (and indeed Wheel from back in the old days). note from the UK is BT Tradespace, a project. Emil Lanne joined as Group Creative Direc-. which kept a third of the agency off the. tor, and Cedric Devitt left Tribal DDB to bring. street and away from home for most of the. his Air Guitar skills and creative leadership to. year and which proves that the social imper-. the role of ECD.. ative is a powerful force for SMEs. Our mission to extend our remit across communications disciplines saw some great. I’m immensely proud of what we achieved creatively in 2009, hopefully, when you look at these cases, you’ll see why.. success in 2009, with Syrup in New York producing some amazing integrated work for. Chris Clarke. Puma. Meanwhile in the Netherlands, the. Chief Creative Director. Lost Boys and girls realised their dreams to produce work with an “interactive heart” which nevertheless extends across media this is best exemplified in their FBTO client. Our colleagues in Amsterdam have also done very well this year, producing work designed to make their client more Believable with the. ě. LBi 2009.

(19) 13 Case study. Three olives vodka. The Objective. The Work. Results. The premium vodka market had become. The first thing we needed to do was step. The O-Face promotion proved to be the per-. crowded with brands touting long lines of. away from Olives and find a unique way to. fect fit to reap the social evangelical bene-. flavour extensions. The prevailing message. carve out a niche from our stuffy and pre-. fits of Facebook Connect and help it stand. these brands conveyed was one of preten-. tentious competitors.. out from the oversaturation of brand-cen-. sion.. “What’s Your O-Face” was part of a multi-. tric UGC efforts. The campaign drove 10,000. million dollar integrated advertising cam-. site visitors per week, 6,201 Facebook. market by introducing new consumers to. paign, where users were invited to upload a. Friends, 4,371 uploaded photos and a stag-. their bold line of flavours from the standard. photo of their best “O-face” – the look of sur-. gering 9 million+ votes cast on the site. It. (citrus, grape) to the outrageous (Triple. prise one has after tasting a shockingly deli-. continues to be a cornerstone of the digital. Shot espresso, Cherry). The brand needed. cious Three-O Vodka drink.. media strategy for the brand.. Three Olives sought to stand out in the. an attention grabbing digital campaign that. Fans uploaded their own ’pictures of. furthered the positioning as Seriously Pre-. pleasure’ onto the site, and were judged by. mium, Seriously Fun.. their peers using special widgets that plug into Facebook and social networking sites. The winner then starred in a national ad campaign winning $10,000.. ě. LBi 2009.

(20) 14 Case study. FBTO Health Insurance The objective. was to develop a campaign to increase the. Live life like you want to). In all campaign-. FBTO was one of the first direct underwriters. number of policies at FBTO and significally. items we focused on the very individual. in the Netherlands, and also the first to. increase spontaneous brand awareness dur-. interpretation of what the Lekker Leven suit. enable customers to fully purchase and man-. ing the campaign period. The ability to. enables. A crossmedia campaign (DM/eDM,. age their insurance online. They offer insur-. adjust the coverage of the policy to exactly. online (advertising and pr), print and RTV). ance for car and motorcycle, health and acci-. fit your need was the main USP for the prod-. was executed to get the campaign message. dent, personal liability and legal aid, travel. uct in this campaign.. across and to activate to the FBTO-website.. one; death. Their customers can put together. The work. The results. the package of insurance that suits them. Choose what makes you feel fine! with the. In the month long campaign period records. best so they only pay for what they need.. health insurance and the ‘Lekker-Leven-pak’. in number of visitors to the FBTO site were. and recreation, home and of course the big. of FBTO. That ‘Lekker-Leven-pak’ was a spe-. broken almost every other day, the number. prolongs their health insurance for the next. cially designed tracksuit that acted as a sym-. of policies sold went up by 60 %!. year or switches to another insurer. Our task. bol of Lekker Leven (loosely translated as:. In December every Dutch person over 18. Case study. The challenge BT Business operates in an aggressive marketplace. As a supplier of broadband and other commercial communications solutions, they struggle with differentiating their service offer-. BT Tradespace. ing from that of consumer products. This is particularly hard in terms of reaching micro businesses – one-man bands, home-based companies, and so on, run by everyday people – the 99% of UK businesses that count as small-tomedium-sized enterprises (SME’s). The Work As BT’s digital agency of record, LBi were challenged to architect, design and build an evolved social commerce platform to engage this audience in a more compelling way. In addition, the challenge was to use LBi’s communications, social network marketing and CRM skills to ensure that existing users were migrated effectively and new users were found in a cost effective manner.. ě. LBi 2009.

(21) 15 Case study. Zwitsal Group The objective Zwitsal is the number one baby care brand in the Netherlands. The brand’s purpose is to help young parents take care of their child. With 80 years of experience, Zwitsal really knows what it is like to be a parent. Zwitsal’s website dated from 2001 and we were asked to create a new web presence. With this online presence, Zwitsal wants to claim baby skin care authority and strengthen the emotional bond between the brand and its consumers. The work The new Zwitsal.nl delivers proof behind the brand message Zwitsal. We know how it feels. The website helps young parents concretely taking care of their kids. Four real mums give a peak into their lives and share their experiences. In eight short online documentary films they share their doubts, tips and tricks. Within the tips and tricks section, visitors will find answers to the most important questions and given the option to ask Zwitsal experts for advice. The result is BT Tradespace, a Face-. An integrated, social CRM strategy and. book for these small businesses. A unique. communications plan helped existing. The results. social e-commerce platform, it brings. users “Get Ready” for the new Tradespace;. The new Zwitsal website went live in. together customers and small businesses. successfully migrating more than 250,000. November 2009 and has been successful so. in a community environment to network. businesses and seeing user engagement. far. The website is currently the centerpiece. and trade. A digital market space that. increase dramatically. The ease of adding. of an integrated expert campaign. The video. allows for anyone to set up their own web-. content helped create 20,000 new ‘active’. content has been viewed heavily, and. site in a few minutes, and that brings free. users from the lapsed segment. Commu-. visitors are spending around four minutes. support for the thousands of small busi-. nity activity grew with a three-fold. on the site. LBi and Zwitsal are currently. nesses around the UK who need an online. increase in posts. Following launch, the. exploring the next stage for Zwitsal’s online. presence without the hassle. BT. “Get Noticed” campaign reached out to. presence.. Tradespace allows them to buy, sell, and. small businesses through a range of on. connect, and helps their customers find. and offline channels to promote the key. their products and services, while engag-. benefits of the new platform.. ing with an active community.. BT Tradespace now numbers more than 350,000 businesses. Weekly income form. The results. the purchase of BT products has seen an. LBi developed and implemented the crea-. increase of 26% since relaunch. Projecting. tive platform “Get Noticed” to support. similar growth into the future, we expect. migration and retention of existing users. that the platform will pay for itself in six. and acquisition of new users.. months.. ě. LBi 2009.

(22) ľŃ Case study. A Digital Strategy for Philadelphia Europe The objective. sumer a branded utility from Philadelphia. Philadelphia is the market leader in cream. across re-launched country sites, Facebook,. cheese across Europe. To increase consump-. and the I-phone.. tion, our job was to point out how versatile it is as an ingredient in thousands of recipes.. The results We’ve delivered a first rate digitally inte-. The work. grated web presence for Philadelphia across. Our research helped us to understand the. Europe. The I-phone app is one of the most. digital and food behaviour of our key audi-. successful branded apps to date, sitting at. ences country by country. The insight gath-. No3 in the lifestyle and 19 in the overall free. ered at this stage lead us to develop our. app charts.. ideas around recipes, and offer the con-. Case study. a scheme designed to empower young “virtual volunteers” to act as advocates for the organisation and drive awareness across their social networks.. British Red Cross. The results More than 70 news articles were printed in UK and international press, up to three campaign tweets per minute were recorded, and an extensive discussion took place across the blogosphere, as thousands of users. The challenge. for the British Red Cross outside of the pro-. actively took part in the Look Beyond the. Formed in 1870, the mission of the British. fessional relationship.. Label campaign. One of the world’s first-ever charity online alternate reality games,. Red Cross is “caring for people in crisis”. Our extremely close collaboration is about. The Work. Traces of Hope had around 8,000 players. extending the charity’s existing persona to. The British Red Cross needs vast amounts of. and was covered by the likes of The Econo-. the online world and harnessing the power. volunteers to survive, and innovative use of. mist and the Guardian. Red Recruits now. of social marketing to take the Red Cross. social media is one way to build that commu-. help the charity spread the word about their. message to new and more engaged audi-. nity online. “Engaging to survive” is what their. appeals, campaigns, and local fundraising. ences. Arguably a very believable offline. social media effort is all about. For Refugee. events on their respective social media web-. brand, the organisation needed to find ways. Week, LBi devised the Look Beyond the Label. sites, and are also used as key consultant on. to connect with younger audiences to make. campaign, creating an online movement to. new projects.. it easy for and appealing to a new generation. pledge support for refugees and tackle dis-. to continue the work that’s been carried out. crimination via online profiles. The Traces of. Cross have unlocked the power of social. historically. The work is highly emotional:. Hope campaign was a high-profile alternate. media to take the British Red Cross message. many LBi employees volunteer to do work. reality game, and the Red Recruits campaign. to new audiences and powerful advocates.. ě. LBi 2009. In partnership LBi and The British Red.

(23) 17 Case study. Electrolux The Challenge Electrolux’s challenge was to increase brand awareness of Electrolux in France to help sell white goods. The aim was to make white goods seem attractive in a unique and creative way. The Work The concept was to move away from just ‘talking’ about the lifestyle attributes of the Electrolux products but to actually deliver them for real and therefore make them believable. The aim was to bring to life Electrolux’s white goods in a real and desired setting through an amazing confluence of art, architecture and food at the Palais de Tokyo museum in Paris. The restaurant seats 12 people for dinner at any one time and is intimately cased within a glass dome on the top of the Palais de Tokyo. With the experience in place, the use of specialist media activities and a dynamic web site take the experience out to the web at large. This project is all about conversations. Consumers can find out about the concept via twitter, social networks and word of mouth, then they are pointed to the website to book. At the end of Art Home there will be a digital record of each and every daily experience. CRM was a large part of this project. With only twelve seats for dinner managing disappointment, waiting lists and contact was paramount. The result Within the first 2 months of going live, the site received 1,500 transactions, resulting in over 4,000 people attending the lunch, dinner or workshops. On Twitter, there are so far 300 followers which has exceeded the estimated target of 200 by the end of 2009. ě. LBi 2009.

(24) 18 Market Introduction. The digital marketplace has. resources to develop the market and sell. online. According to the Aberdeen Group. matured significantly in the past year. There. both new and established services. Failure to. Report “The ROI on Social Media” (March. has been a shift from multiple suppliers to. satisfy demands and remain competitive in. 2009), US adults now spend, on average,. single full service relationships where the. these and other respects could be detrimen-. 30% of their leisure time online. With more. agency understands the full customer jour-. tal to LBi’s operations, earnings and financial. than 70% increase since 2007, this is part of. ney underpinned by an appetite for sophisti-. position. The digital marketing sector could. a recent and dramatic trend. The number is. cated analytics and CRM. Technology has. still be considered as fragmented and further. in addition likely to rise further as a greater. also opened up more efficient flexible ways. consolidation opportunities are expected.. proportion of the population spend more. of working, allowing agencies to service glo-. LBi’s key competitors are Sapient, Razorfish,. time at home due to the current economic. bal accounts using experts clustered in cer-. Digitas, AKQA, Ogilvyone and Tribal DDB.. downturn. Corresponding numbers for Swe-. tain territories rather than through the inefficiency of market silos. At present, clients are focusing more on. Online advertising. Over the long-term the movement of audiences and marketers. den, Germany and the UK respectively are 18%, 23% and 28%3). This means that even if. from traditional display and broadcast. overall discretionary consumer spend falls as. the potential for digital content to build their. media to interactive media is anticipated to. a result of reduced income, a greater propor-. brands amongst highly motivated digital. accelerate. According to GroupM’s June. tion of that income might be spent online.. 1). communities, and social media have become. 2009 forecast , online advertising, which. The effect on the share of marketing budgets. the major influencer of purchase decisions.. includes display, search, video, and other. being allocated to digital with falling con-. There has also been an increase in branded. categories, is expected to reach USD 26.1 bil-. sumer spend, but more time spent online is. digital utility, where marketing and the serv-. lion in spending in 2010.. therefore difficult to assess.. ice collide, this is born out most obviously in. The online marketing sector is assumed. In the Search Engine Marketing product. the rise of the iphone application. Mobile. to continue to outperform traditional adver-. segment, margins have been pressured as a. marketing has yet to reach its tipping point,. tising. In particular, the Search market con-. result of lower discounts from search engine. 2). though in 2009 revenues became significant. tinues to grow. The Forrester report on. operators. During 2008 Google withdrew. as brands began to explore the massive. growth of online activities over the past. the Best Practice Funding commission from. potential of the ubiquitous mobile device.. three years shows that general activities are. the market place and this has put earning. steadying. Functions such as email and. pressure on the industry as a whole. How-. on the following sources: IPA (Institute of. search are the mainstays of online activities.. ever, LBi believes that an extended product. Practitioners in Advertising), TNS Global,. Therefore companies continue to funnel a. portfolio with turnover in sectors with good. Harrison Interactive, Magna, ChangeWave,. majority of their online marketing budgets. margins, such as search engine optimisation. Worldwide partners, The Aberdeen Group,. into search engine optimisation and email. and affiliate marketing, as well as products. Forrester and Group M.. marketing campaigns. According to For-. such as Online PR, Design Efficiency and. rester research, online social networking. Social Media Marketing will be able to com-. accurately reproduced and as far as LBi is. shows double-digit growth numbers and. pensate for this.. aware and is able to ascertain from informa-. online media use is growing in single num-. tion published by the sources above, no facts. bers. With regard to mobile internet the. Looking briefly at the impact of the current. have been omitted which would render the. adoption rates of many of the advanced cell. downturn on the Business-to-Business mar-. reproduced information inaccurate or mis-. phone functions are still small, but they show. ket, current dynamics are clearer. It is antici-. leading.. that people have an interest in a mobile. pated that marketing budgets will be. device with other features than just talking.. reduced overall, while digital spend will. The information below is mostly based. The information in this section has been. Competition. LBi will be exposed to intense competition. Its rivals include other. In the wider context of more people. The Business-to-Business Market.. remain stable or grow slightly. A survey from. companies, some of which are quite large, as. spending more time online, a decrease in. Worldwide Partners4), published in February. well as the divisions of current and prospec-. online marketing budgets is less likely. Mar-. 2009, shows that, in a sample of 83 global. tive clients. While responding quickly to. keting needs an audience and that audience. business leaders, 62% of North American. changing client requirements, LBi needs. is now increasingly expected to be located. CEOs and 39% of non-North American CEOs. 1). GroupM Global Ad Forecast (June 2009).. ě. 2). The Forrester Wave Full-Service Market ResearchOnline Community Vendors (Q4 2009).. LBi 2009.

(25) 19 said that they think digital marketing budg-. ing budgets in 2009. Social network adver-. ets will increase in 2009.. tising worldwide will rise almost 20% in. LBi consequently anticipates that digital budgets as a proportion of total marketing. lion in 2008. Scandinavia. Scandinavian operations. spend will grow. Over the long term a continued movement of audiences and market-. recovered slightly from the first quarter but. ers from traditional display and broadcast. are still under pressure as several larger Nor-. media to interactive media is expected to. dic clients are cutting budgets as a conse-. accelerate. In summation, the expected out-. quence of increased economic uncertainty.. look for digital marketing is positive once the. The slowdown on the Nordic market can. challenges of the current business cycle can. over time be counterbalanced by funnelling. be overcome.. clients via the UK, to make use of the good. Budgets cut in the UK and Europe. The. ě combine LBi’s best in class digital media, marketing, communications, design, branding and technology services with Obtineo’s leading search engine marketing. technical and creative skills in Denmark and. UK market is recovering from the first quar-. Sweden and benefit from the lower cost. ter 2009, which is believed to represent the. rates. In response to the difficult circum-. bottom of the UK market for digital & adver-. stances, management has been able to. tising services. According to the renowned. downward adjust the cost base to ensure. Bellwether Report5), published in the UK in. that the region delivers adequate margins.. ě meet growing customer demand for one agency to provide services across geographies ě create Europe’s largest marketing and technology agency with strong capabilities in US, Asia and MENA. Western continental Europe and. January 2009, overall marketing budgets fell in Q4 2008 by 42%. This was based on the. Scandinavia. In western continental. budgets of 300 global marketing organisa-. Europe and Scandinavia, market conditions. tions tracked by the IPA. The biggest falls in. are country specific. Overall, the recovery is. marketing spend has once again occurred in. more hesitant with a lagging top line and. traditional media with over 30% reductions. margin development. In the third quarter,. recorded for TV and print. However, for the. performance in these regions is typically. first time since the economic downturn, dig-. impacted by seasonality and the high pro-. ital was not immune. Search budgets fell by. portion of holiday entitlement in the period.. ě encompass knowledge sharing for the benefit of clients with over 1,600 people across 15 countries ě bring together a strong customer base of blue chip, global companies ě create a stronger appeal to attract and maintain the best talent ě provide a simplified listing structure, greater access to global capital markets and international investors ě capitalise on the structural shift in spend from offline to online channels. The wider opportunity in Asia. For fur-. 4% and the decline across all other online marketing sectors was 7%. Especially a sharp. ther context, and as a more positive look at. drop-off in spend from clients in the Finan-. future growth opportunities, note that in. cial sector has impacted sales negatively.. China, South Korea and Japan, Internet users. In the most mature markets, the US and. On 25 February 2010 LBi announced the merger with Obtineo to create Europe’s largest marketing and technology agency. Obtineo is a combination of Bigmouthmedia, the largest search engine marketing specialist in Europe, and €40m of new capital committed towards global expansion of the combined entity. The combined entity will:. 2009 to USD 2.35 billion, up from USD 2 bil-. ě strengthen financial position with ability to drive further industry consolidation ě support further expansion in the US, Asia and MENA. spend respectively, 44%, 40% and 38% of. ě enable material revenue synergies and cost savings. the UK, there are benefits of having a disci-. their leisure time online3). If regular partici-. plined approach. In both these regions there. pation in social network is the key indicator. is increasing evidence of improved senti-. for increased consumer spend, there is rea-. ment and as a consequence of LBi’s strategy,. son for optimism, as only 24% of all Chinese. significant improvements in both the top. broadband users currently regularly partici-. and bottom line could be achieved. LBi will. pate in social networking. Numbers for India. probably also benefit from the increasing. and the Middle East, where LBi is establish-. trend to consolidate digital spend into the. ing a growing presence and reputation are.

(26) . larger more mature full-service agencies.. lower still and correspondingly could. . US online market growth. In the US,. Net sales per region, MSEK. present additional opportunities.. similar positive trends are observed. The.

(27). . Aberdeen Group report “The ROI on Social. . Media” (March 2009) shows that social networking activity has grown 93% in the past two years, and is now a regular feature of. Average no of employees per region. online life for 76% of America’s 105 million broadband users. Add to that the knowledge. . that active social networkers spend an aver-. . age of USD 101 online per month compared with USD 80 online per month for inactive or.

(28) . non-social networkers, and a clear upward. . economic trend is apparent, with a market valued at USD 1,471 billion in 2009. The report finds that 63 percent of companies. Diagram per 31 December 2009, not including BMM and Triple. plan to increase their social media market-. 3). Aberdeen Group Report “The RO I on Social Media” (March 2009).. 4). Worldwide Partners Inc. Agency CEO Survey (February 2009).. ě. LBi 2009. 5). Q4 2008 Bellwether Report..

(29) 20 Corporate Governance Report Shareholders exercise their voting rights LBi to merge with Obtineo. at the Annual General Meeting when it. On 25 February 2010 LBi announced the merger with Obtineo to create Europe’s largest marketing. comes to the composition of the Board of. and technology agency. Obtineo is a combination of Bigmouthmedia, the largest search engine. Directors and the election of auditors. The. marketing specialist in Europe, and €40m of new capital committed towards global expansion of. Nomination Committee proposes candi-. the combined entity. LBi and Obtineo’s Boards of Directors and Executive Management expect the. dates for directors, chairman of the board of. merger to be finalised by July 2010. The merged entity, which will trade under the name LBi, will be a. directors and auditors. The Board of Direc-. Dutch NV with a single listing at NYSE Euronext Amsterdam and is expected to be listed on July,. tors is responsible for LBi’s long-term devel-. 2010. Upon completion of the merger, the shares in LBi will no longer be listed on NASDAQ OMX. opment and strategy, and for controlling and. Stockholm. The head office of the combined entity, responsible for central administration and. evaluating the Company’s day-to-day busi-. financial functions, will be located in Amsterdam.. ness. The Board of Directors also appoints LBi’s CEO. The Board of Directors carries out a. The governance of the merged entity will be undertaken through a two-tier Board structure consisting of a Supervisory Board who will be responsible for taking key strategic decisions, and a. part of its duties via the Audit Committee. Management Board whose responsibility will be for the day-to-day operations of the business and. and the Remuneration Committee.. implementation of the Board strategy. Mr. Luke Taylor, current CEO of LBi, will be the new CEO of. The CEO is responsible for ensuring that. the Management Board of the combined group and Mr. Huub Wezenberg, current CFO of LBi, will. the day-to-day business in LBi is conducted. be CFO of the combined group. Mr Fred Mulder, LBi’s current Chairman, will be Chairman of the. in accordance with the guidelines and. Supervisory Board. In addition to Mr Mulder, the Supervisory Board will include Joost Tjaden, Nazo. instructions of the Board of Directors. In. Moosa, George William Fink and another independent member. Such proposal will be subject to the. accordance with the rules of procedure and. appropriate involvement of the nomination committee. In addition to the Supervisory and the. instructions for the CEO in force, Group. Management Board, a Strategic Advisory Committee will be formed to help inform the strategic. management shall inform the Board of. direction of the company. This Committee will be chaired by Frank Botman, CEO of Cyrte, and. Directors on a current basis of the Compa-. include Michiel Mol and Steve Leach, founders of Lost Boys and Bigmouthmedia respectively.. ny’s financial condition, the state of the business and the market. For the year ended 31 December 2009, LBi had an organisation for reporting in accordance with the country/regional segments United States, Central and Southern Europe, the United Kingdom (including India. General. daq OMX Stockholm regarding sound and. and UAE) and Scandinavia. Responsibility for. LBi is a public limited company with its regis-. effective corporate governance.. reporting in accordance with the segments. tered office in Stockholm, Sweden. LBi applies the revised Swedish Code of Corpo-. LBi’s corporate governance report has not. rests with Group management: the Group CEO, the Group COO, the CEO for LBi UK, the. been reviewed by its auditors.. Group CFO, the Group Chief Creative Officer. rate Governance from 1 July 2008 and includes this corporate governance report. Bodies for corporate governance. and the Group Strategy Director; with ulti-. attached to the annual accounts for 2009 to. Corporate governance and control is exer-. mate reporting to the Group CEO.. be presented at the AGM 2010.. cised in LBi by a number of bodies within the. In 2009 LBi had a primary listing on the. The extended Group management consists of Group management and the Subsid-. company.. Nasdaq OMX Nordic Exchange Stockholm and a secondary listing at NYSE Euronext in. Corporate Governance at LBi. Amsterdam, the Netherlands. The merged entity, which will trade under the name LBi,. Annual General Meeting (51,734 shareholders). will be a Dutch NV with a single listing at NYSE Euronext Amsterdam and is expected to be listed in July 2010. The Dutch Corpo-. External auditors. Nominating Committe. Audit Committe. rate Governance Code shall apply to the. Board (5 members). merged entity. Corporate governance in 2009 at LBi is. Remuneration Committe. based on Swedish legislation, primarily the Swedish Companies Act and the Rule Book for Issuers Nasdaq OMX Stockholm, the Swedish Code of Corporate Governance and other applicable rules and regulations. LBi’s Board of Directors and executive. CEO and President. External regulations. Governing documents. ě ě ě Corporate Governance. ě ě ě ě ě ě ě. Group management (6 members). management strive to live up to the requirements of sound corporate governance of the. Extended Group management. shareholders, other stakeholders and Nas-. ě Ŀ Ľ Ľ ņ .

(30) 21 iary CEOs and MDs. The extended Group. ment for a higher majority. In the case of. management holds a scheduled meeting at. elections, the person with the highest num-. ings are carried forward to the 2010. least four times per year.. ber of votes is elected.. accounts.. There are a number of policy documents. Issues resolved by the Annual General. No dividend is declared and retained earn-. Katarina G. Bonde, Michiel Mol, Fred Mul-. adopted by the Board of Directors to govern. Meeting include adoption of the income. der and Lucas Mees were reappointed as. LBi’s operations. Refer to Governing docu-. statement and balance sheet, allocation of. members of the Board of Directors and. ments.. the Company’s earnings or loss, and dis-. George W. was appointed. Former Board. charge from liability for the directors and the. member Robert Pickering decided not to be. Ownership situation. President. Other issues that may be resolved. available for re-election. Fred Mulder was re-. The three largest shareholdings per 31. solely by the Annual General Meeting include. appointed as Chairman of the Board.. December 2009 were held by Euroclear Bank. the composition of the Board of Directors,. (50.3 percent), Ing Luxenbourg (23.3 per-. increase or reduction of the share capital,. amounts to a total of EUR 110,000 to be dis-. cent) and Six SIS (5.5 percent). The Mol fam-. new issuance of shares, and issuance of sub-. tributed among the Board members as fol-. ily in the Netherlands is the largest share-. scription options or warrants. Regarding. lows: the Chairman EUR 30,000 and each of. holder in LBi and holds in total 16,103,597. issuance of securities it is common, how-. the other members of the Board of Directors. shares (26,0 percent) via companies. Refere-. ever, for the Annual General Meeting to give. EUR 20,000.. rance is made to the LBi share section for. the Board of Directors a year-long mandate. more information about the Company’s. to make decisions within certain limits.. ownership structure. The number of share-. LBi’s goal is that as many directors as pos-. Remuneration for the Board of Directors. Procedures for the Nomination Committee’s appointment and work. The guidelines for determining salary and. holders is 51,734. The share capital is MSEK. sible shall be present at the Annual General. other remuneration to the Managing Direc-. 155.0 divided into 62,023,276 shares. Each. Meeting. At least one of the Company’s audi-. tors and other persons in the company’s. share entitles its holder to equal proportions. tors shall be present at the Annual General. management, according to the Board’s pro-. of the Company’s assets and earnings.. Meeting. Shareholders who wish to have an. posal, were adopted.. issue brought before an Annual General. The resolution regarding grant of. General Meetings. Meeting shall make a request in writing to. 1,400,000 employee stock options in accor-. The right of the shareholders to decide on. the Board of Directors. On the condition that. dance with the Group global share option. the affairs of the Company is exercised at the. such request is received in time to be. plan, according to the Board’s proposal, was. Annual General Meeting or extraordinary. included in the notice, the issue will be. adopted.. general meetings of shareholders. Share-. brought before the general meeting. Share-. holders who are registered in the share reg-. holders are also given an opportunity to. 1,400,000 warrants for subscription of new. ister on the record date and have filed notice. pose questions to the Company at the. shares to ensure the option undertakings of. of attendance are eligible to attend. The. Annual General Meeting.. the Company, according to the Board’s pro-. Annual General Meeting shall be held within. Those who wish to contact the Board of. The resolution regarding issuance of. posal, was adopted.. six months of the end of each financial year,. Directors or the Nomination Committee. usually between the end of March and the. may do so via Annemarie de Bont, annema-. 2010 Annual General Meeting. beginning of May. Extraordinary General. rie.debont@lbi.com. Such message should. LBi’s 2010 Annual General Meeting will be. Meetings of shareholders are convened as. state whether the matter is aimed at an indi-. held 12 May in Stockholm at 14.30 CET.. needed.. vidual director, the Chairman, the entire. Notice of the Annual General Meeting in LBI International AB is given as prescribed in. Board of Directors, or the Nomination Com-. Nomination Committee. mittee.. Among the tasks of the Nomination Com-. the articles of association, in the form of. mittee is the assessment of whether the. advertisement in Post- och inrikes tidningar. Annual General Meeting 2009. Board of Directors has the right composition. and Svenska Dagbladet in Sweden and in a. At LBi’s 2008 Annual General Meeting, held 6. and if such is not the case, identify new can-. Dutch daily newspaper in the Netherlands.. May 2009 at Hotel Anglais in Stockholm, the. didates. The Nomination Committee shall. The time and location for the Annual General. following directors and members of Group. also present suggestions for directors and. Meeting are set forth in the notice, and the. management participated: Chairman Fred. auditors and proposed remuneration for. procedure that must be followed by those. Mulder, CEO Luke Taylor , CFO Huub Wezen-. directors and auditors. The Nomination. wishing to vote. Each share entitles its. berg and Auditor Hans Jönsson, assisted by. Committee ahead of the 2010 AGM consists. holder to one vote. Shareholders who are. Johan Lilliehöök. A total of 21 shareholders. of Gunnar Ek (representing The Swedish. unable to participate in person may be repre-. attended the AGM representing 24.1 percent. Shareholders Association), Frank Bergman. sented by a proxy in writing, signed and. of the votes and share capital. Ola Silberman. (Red Valley, Luxembourg, S.a.r.l.), and LBi’s. dated by the shareholder (proxies have a. was elected chairman of the AGM.. Chairman, Fred Mulder. No compensation is. maximum validity of one year from the date of issuance). The Annual General Meeting usually. paid to the members of the Nomination Resolutions. The minutes from the AGM 2009 are avail-. Committee. In 2009 the Nomination Committee. passes resolutions with an ordinary major-. able on LBi’s website. Resolutions passed by. focused primarily on discussion and evalua-. ity. In certain cases there is a legal require-. the Meeting included the following:. tion of the Board and its performance and. ě Ŀ Ľ Ľ ņ .

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