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Enron & Interpublic Group FY 2000 Financial Results Overview and Joint Venture Insights

In FY 2000, Enron reported significant sales of $100.8 billion, reflecting a robust 151.3% growth. Net income reached $979 million, growing by 9.6%. Interpublic Group (IPG) also showed strong performance with $5.6 billion in sales, a 27.1% increase, and a net income of $359 million, up by 11.4%. A joint venture between Enron and IPG, owning a 25/75 split, will strategically manage structured media transactions and risk management. Projected earnings from this collaboration could reach up to $400 million, benefiting both companies and enhancing media opportunities.

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Enron & Interpublic Group FY 2000 Financial Results Overview and Joint Venture Insights

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  1. Existing Enron & Interpublic Group Business ENRON FY 2000 Results Sales: $100,789 MM 1-Yr. Sales Growth 151.3% Net Income: $979 MM 1-Yr. Net Inc Growth 9.6% Capitalization: $43.5 B Q1 2001 Results Sales $50,129 MM Net Income $425 MM INTERPUBLIC FY 2000 Results Sales: $5,626 MM 1-Yr. Sales Growth 27.1% Net Income: $359 MM 1-Yr. Net Inc Growth 11.4% Capitalization: $11.2 B Q1 2001 Results Sales: $1,302 MM Net Income: $65.3 MM Producers Media $ $ Commodity Media Enron IPG $ $ Commodity Media Consumers Advertiser

  2. Joint Venture Between Interpublic Group & Enron • 25/75 ownership between IPG & Enron. • Earnings from existing IPG businesses and clients are owned and controlled by IPG. • All transactions involving risk management, structured finance products, and derivatives to be performed through JV. • All JV business to be managed by fair value accounting methods (ie. price curves). • All incremental media business from structured media contracts, traditional media, securitization of trade credits, financial trading will be shared 75%/25% by JV Media $ Media $ / Financial Structuring / Risk Management Earnings / Media JV IPG Earnings / Commodity $ $ Media Advertiser

  3. Joint Venture Transaction Structure Structured Media Transactions Media Scheduling Traffic Spot negotiations Media /Optionality $ Media $ / Financial Structuring / Risk Management Earnings / Media JV IPG Earnings / Commodity $ $ $ Commodity Media Media $ Incremental Billings Enron Customers Advertiser

  4. Earnings Potential $400MM $100MM Interpublic Group$300MM Enron $400MM ExistingBusiness Structured Media Transactions Media Media /Optionality $ $ Media $/Financial Structuring / Risk Management $300MM incremental Earnings / Media $600 MMJV IPG$700 MM $300MM Earnings / Commodity$300MM $ $ $ Commodity Media Media $ New Advertisers Enron Customers Advertiser

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