2005 Global Profile: Financial Dynamics

CEO

Charles Watson

Headquarters location

New York, London

Total US staff

110

Total non-US staff

190

Worldwide office locations

Wholly-owned: London, New York; Athens, Bahrain, Boston, Chicago, Dublin, Frankfurt, San Francisco, Washington, DC, Paris, Manchester

Affiliate/partnership: Stockholm, Delhi, Mumbai

Proportion of the wholly- and majority-owned agencies that carry the parent's brand name

100%

Global structure

FD's head or "hub" offices are located in London and New York. We are represented in all major business centers around the world, as described in the list of offices above. FD International, of which Charles Watson is CEO, also is based in London, as the network umbrella for all FD's offices around the world. Declan Kelly is President & CEO of FD-US and Chairman of FD Ireland. All other offices around the world are overseen by general managers.

Key clients

Heineken International

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

London and New York

Type of work done on the account, including practice areas involved

FD provides corporate communications, media relations, and investor relations services to Heineken.

Length and type of engagement

Client since mid-2004.

Management structure of the account

Nic Bennett, UK Managing Director, is global lead for ongoing communications program; Michael Bayer, MD in New York, is global lead for corporate brand positioning efforts.

How account is billed

Billing is monthly retainer plus projects.

Size of budget

$400,000

Coca-Cola HBC

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

Work for this account is handled out of New York and Athens, Greece.

Type of work done on the account, including practice areas involved

Investor relations and financial media relations are the core services that FD provides to Coca-Cola HSBC, one of the largest Coca-Cola bottlers around the world.

Length and type of engagement

This is a retainer relationship of nearly five years.

Management structure of the account

Christine Mohrmann, MD-NY, and Alastair Heatherington, head of FD Athens, Greece, lead the global account with Brian Maddox, MD-NY, providing senior media relations.

How account is billed

The account is billed on a monthly retainer basis.

Size of budget

Not supplied.

Management Recruiters International

Regions where account is serviced, and whether the work is done by an affiliate, partner or a wholly-owned office of the firm

New York and London.

Type of work done on the account, including practice areas involved

Corporate PR, thought leadership, market research, positioning, and media relations.

Length and type of engagement

Retainer relationship since mid-2004.

Management structure of the account

Andy Maas, SVP in NY, is global account manager, with teams in London and New York, and total of eight people working on account.

How account is billed

Monthly retainer plus projects.

Size of budget

$300,000

Global revenues change from one year ago (Global revenue is defined as revenue generated by all regions)

Global revenues are up nearly 20% from a year-ago. As a private company, FD does not disclose its financial results in detail.

International revenues change from one year ago (International revenue is defined as revenue generated by all regions excluding the region in which the agency is headquartered)

Given FD's structure as an international business communications firm and structure with hub offices in NY and London, the figure provided above represents overall international growth as well.

Global staffing change from one year ago

Global staff is up 15%, with the addition of several new offices (Chicago), the launch of 85four in the UK, and the acquisition of Tamesis in the UK (adding Birmingham).

International staffing change from one year ago

International staffing, which for FD is the same as global staffing, is up by nearly 50 new staff at all levels.

Performance in light of expectations and the sociopolitical factors affecting performance

FD's performance globally met our expectations for 2004 and is on track to do so in 2005. Deal flow in the UK, where FD is number one in league tables for M&A advisory, and in the US, where FD holds a solid second position, has complemented a growth in our retained client business, enabling FD to cross-sell services across all areas of the business, with clear demonstration of market acceptance of our focus on corporate communications, investor relations and public affairs. Our sector specializations across basic industries, financial services, healthcare and life sciences, retail, technology and telecom, and property and related services across our three core businesses have all contributed to the firm's growth and overall success.

Business won, or lost, in the past year due to a global PR consolidation by the client

The business that we have lost due to consolidation is a result of acquisition.

Best-performing regions

The UK continues to be a strong performer, in large part due to our market position in M&A and deal-flow, but also as a result of new retained business and an increasing number of global accounts, serviced by multiple offices within the FD network. The US continues to show strong performance with new retainer wins from global companies across all sectors, and Ireland continues to show strong performance.

Under-performing regions

All business units are performing on target.

Region targeted for increased investment of resources this year

FD announced earlier this year its entry into the India market via a joint venture with Vaishnavi Communications - one of India's leading communications consultancies to generate additional business for FD in the Sub-Continent. We continue to look for opportunities in Europe and other emerging markets.

Region targeted for decreased investment of resources this year

We are not decreasing investment generally in any particular region.

New region/country under consideration to enter this year

We are continuing to look for opportunities in continental Europe and in emerging markets in Asia and Eastern Europe, where we have identified a growing need for FD's business communications services and growing appetite for accessing the Capital Markets in the West or growing visibility among investors, analysts, customers, and business partners.

Consideration of international acquisitions or organic growth

We are growing the business organically and have already made a couple of acquisitions (as indicated), consistent with our overall business strategy. We expect to pursue both means of growth over the foreseeable future.

International pro bono activities and other ways the firm connects with the regions in which it operates

The tsunami in India in December of 2004 is an illustration of how FD's international network united to collect funds in support of the global relief efforts. A number of FD staff participate in major charitable organizations, and are encouraged to do so, both as professionals offering communications advisory on a pro bono basis and as volunteers in support of the missions of these respective organizations.

Key changes made over the past couple of years that were driven by clients' changing needs

The most significant change for FD was our management-led buyout in July 2003, which enabled us to pursue our strategy of providing business communications consulting services, which continue to be driven by our clients' need for a broader range of public affairs, corporate, and financial communications.

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