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ING Conference Presentation October 6, 2012

ING Conference Presentation October 6, 2012. GANNETT PUBLISHING SERVICES. Who are we How did we get here 1 st Year success/challenges Moving Forward. GANNETT PUBLISHING SERVICES. GPS is a one year old business that manages: Production operations. GANNETT PUBLISHING SERVICES.

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ING Conference Presentation October 6, 2012

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  1. ING Conference PresentationOctober 6, 2012

  2. GANNETT PUBLISHING SERVICES • Who are we • How did we get here • 1st Year success/challenges • Moving Forward

  3. GANNETT PUBLISHING SERVICES GPS is a one year old business that manages: • Production operations

  4. GANNETT PUBLISHING SERVICES GPS is a one year old business that manages: • Production operations • Product distribution

  5. GANNETT PUBLISHING SERVICES GPS is a one year old business that manages: • Production operations • Product distribution • Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC)

  6. GANNETT PUBLISHING SERVICES GPS is a one year old business that manages: • Production operations • Product distribution • Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC) • Contractual outsourcing of printing for all of Gannett’s printed products

  7. GANNETT PUBLISHING SERVICES GPS is a one year old business that manages: • Production operations • Product distribution • Consumer sales and services (CSS, CSC, OCC, CIDC, and DRC) • Contractual outsourcing of printing for all of Gannett’s printed products • Building business for imaging, ad production, printing, packaging, distribution of third-party products and consumer services

  8. Gannett Publishing Services Senior Management President Evan Ray SVPOperations Austin Ryan SVP Circulation Jerry Hill VP Finance Kelly Provant VP Technology John Palmisano VP HR Mellisa Alford

  9. Operations Printing & Packaging Structure SVP Operations Austin Ryan VP National Printing & Packaging Dale Carpenter East Regional VP Jack Roth Midwest Regional VP Greg Fiorito West Regional VP Open Mideast Regional VP Bill Bolger

  10. Gannett Publishing ServicesNational Commercial Sales Sandy Andrews VP National Commercial Sales Atlanta, GA Regional Sales Executive West (1) Regional Sales Executive East (4) Regional Sales Executive Mideast (3) Regional Sales Executive Midwest (4)

  11. Gannett Publishing ServicesImaging and Ad Production Toni Humphreys Director Imaging & Ad Production Connie Gallagher Customer Support Development/ RTC Operations Manager Amy Cox Senior Financial Analyst Monty VanEmmerik IT Manager Stephanie Lengtat Operations Manager (DM)

  12. GANNETT PUBLISHING SERVICES • 41 Gannett owned print sites • 29 Contract print facilities • 18 of these print USA Today • 5 of these print USA Today and a Gannett daily newspaper • 70 sites in 4 regions

  13. GANNETT PUBLISHING SERVICES • Product distribution • Home delivery • Single copy • Consumer sales and services • Customer support • Sales and marketing efforts

  14. GPS - Distribution Management Structure President, GPS Evan Ray Sr. VP of Circulation Jerry Hill VP Distribution & SC Sales Jack Saunders VP National Distribution Tom Kelly Single CopyOps Kevin Cooper Sales Services(Load Network) Chris Hansen Home Delivery Ops Rosie Cassidy USPS Tom Salvo Reg. VP, East John McGee Reg. VP, South Bob Sutherland Reg. VP, Midwest Open Reg. VP, Upper MW Mike Quinn Reg. VP, West Steve Reed

  15. Regions (5) & Markets (16) Site Map

  16. GANNETT PUBLISHING SERVICES • How did we get here

  17. Prior to GPS: • U.S. Community Publishing (USCP) • 80 local newspapers • USA Today • National newspaper • Gannett Offset • Commercial printer, USA Today and regional commercial accounts

  18. GPS More Fully Leverages the Company’s Existing Assets, Including: • Industry-recognized employee talent and experience • Investment in physical plants, equipment and real estate • Unique national and local distribution network

  19. Consolidate Operations: Executive Summary Consolidate and centralize management and eliminate duplicative activities across all GPS divisions, implement a cost efficient model across all markets, and build sales capability to fully load the network. Description 1 Business implications Objectives 3 2 • Realignment of organizational structure • Major culture change • Shift in financial responsibility • Change in accounting processes • Greater focus on loading • Improved opportunities for across print site business units • Reduce annual operating cost • Allow unit management (publishers) to focus solely on content, audience engagement & advertising sales • Maximize productivity & efficiency • Eliminate duplication • Leverage existing expertise across business units • Loading the network by building sales services organization

  20. GANNETT PUBLISHING SERVICES • Allow unit management (publishers) to focus solely on content, audience engagement & advertising sales

  21. GANNETT PUBLISHING SERVICES What is our commitment to our newspapers?

  22. Responsibilities • Print and deliver all publishers’ products within current schedules and deadlines. • Print all work consistently at or above Gannett Optimum Quality guidelines. • Inserting will be at a 98% accuracy level or better for FSI’s and 100% for editorial products. • Maintain publication position in the marketplace and make adjustments to draw when breaking news or events present the opportunity. • Jointly discuss and agree to sales strategies and goals to maximize volumes and profitability objectives. • Meet consumer volume expectations on key days in key zip codes outlined in strategies and initiatives. • Achieve quantitative metrics and key performance indicators (KPI’s) for consumer service, sales and retention. • Participate in annual budgeting and operational planning process, and conduct periodic performance reviews. • Communicate and work with the publisher/general manager in the event of a hard down or force majeure to minimize delays in the delivery of the paper.

  23. The Publisher Responsibilities • Provide GPS with page and editorial close in a timely manner and reasonable flow. • Make reasonable efforts to ensure incoming materials meet specifications and are readily identifiable • Maintain or improve editorial quality standards. • Provide input on publisher’s market strategy, and collaborate with GPS to develop operational and expense plan to meet market goals. • Both Publisher and GPS will: • Communicate any quality or service issues to the other party • Quickly address any reasonable concerns from the other party • Keep parties apprised of any potential legal, regulatory or operational risks. • Work together on budgeted and projected volumes

  24. GANNETT PUBLISHING SERVICES 1st Year Successes

  25. Objectives Accomplished to Date: • Formed business unit and restructured a 132 member management team and realigned 8,400 employees into new single business unit  • Finance – accounting, purchasing, payroll, inventories, etc. • Human Resources – restructures, job descriptions, pay grades, benefits, workers comp, hiring/firing, employee development, etc. • Reporting – begin standardize, GPS database

  26. Objectives Accomplished to Date: • Merged USA TODAY and USCP distribution and single copy sales management teams and realigned along five new national regions • USCP strength of local home delivery • USA Today strength of single copy • Consumer services – evolution • Consumer sales and marketing – leveraging expertise

  27. Objectives Accomplished to Date: • Merged USA TODAY, USCP and Gannett Offset Production Operations management teams and realigned along four new national regions. • Regional VP’s • Local GM’s – press and packaging management with more complexity of multiple publications and commercial work • Commercial work • Regional sales force • Leverage commercial expertise

  28. Objectives Accomplished to Date: • delivered significant improvement to the bottom line of the Gannett company

  29. GPS successes: • new launches - bringing on daily newspapers to our own print sites • new launches – USA Today strategic print locations • new launches – out sourcing our newspapers to non Gannett print sites • PRINT OR BE PRINTED - do the work where it makes the most sense

  30. GPS successes: • better understanding of commercial sales process • building relationships with potential customers or printing partners • developed a quoting tool for commercial pricing • developed a publishers check list for things to consider when outsourcing • quality standards, customer support, estimating, fulfillment and billing

  31. GPS successes: • Improving reporting of statistics – GPS database • applying best practices • scheduling, training, equipment, maintenance, etc. • sending employee “experts” to help sites • more aggressive use of company equipment • RVP’s know what is out there – equipment inventories • employee reviews • Common review date for all • most management levels on company wide review system • common consumables for better price and standardization

  32. GANNETT PUBLISHING SERVICES 1st Year challenges

  33. GPS challenges: • Revenue and growing the business • churn • the bigger the project, the longer the selling process • relationship building • building a sales force • sales material, quotes, specs, samples, deadlines, production capabilities, work flows, billing, etc • compensation plan

  34. GPS challenges: • Changes in a large organization • communication • culture/history • Employee items • workers doing more with less • furloughs • benefits – moving toward standards • change and uncertainty it brings • motivation, retention and succession planning

  35. GPS challenges: • lack of equipment flexibility • web width, quarter fold, trimming, etc • equipment maintenance • recovering from past maintenance reductions • scheduling maintenance as business grows • systems and standards • vendor community • upgrades to drives, controls and systems • concern for vendor support

  36. Moving Forward

  37. GPS is Significantly Reducing Operating Costs by: • Standardizing best practices across our printing and distribution networks • Eliminating work process and management redundancies

  38. GPS is Growing Revenue by Increasing Third-Party Sales of: • Pre-media services • Commercial printing • Product delivery • Customer services capabilities

  39. Strategic Objectives for GPS are: • To allow our local media unit management teams to focus more fully on growing audience, improving content and developing revenue • And, for Gannett Publishing Services management to: • concentrate on optimizing and leveraging our centralized production and circulation assets and operations • and focus our centralized consumer acquisition, retention and engagement services to accelerate the company’s recently announced transition from the print subscriber model to the multi-media paid content subscription model

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