Fy 13 15-rolling_strategy[1]


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Fy 13 15-rolling_strategy[1]

  1. 1. Vistaplan UpdateFY13 - FY17
  2. 2. Table of ContentsIntroductionData and beliefs that inform our strategyProgress report on last year’s strategyEvolution from last yearOur FY13-17 corporate strategy o Reinvigorate growth in our core o Lay foundations for future growth 2 o Commit to a multi-year resource ramp o Take the long view on earnings (J-curve)Focus—or what we will not doOperationalizing our strategy o Strategy pyramid o Organizational structure o Resource allocation o Corporate dashboard Vistaprint CONFIDENTIAL © FY2012
  3. 3. 01IntroductionThe following document articulates our rolling five year strategy for FY13 - FY17. With a year ofimplementation behind us since our major course change, this plan benefits from some significantevolution and improved specificity. That being said, you will see that our FY13-17 corporate strategy isvery consistent with the direction we set in the FY12-16 version. The net impact of the improvementsand the consistency is that we believe our corporate strategy is the most compelling one to date—andwe are very excited about what we are going to create together in the next five years.As we said last year, this roadmap is a “living” strategy, evolving and adapting every year in function of 2the changes around us and the perspective gained from each year of progress. While our broad strategicdirection is intended to last for multiple years, we will continue to pursue an annual cadence of revisitingand refining our five year rolling strategy, allowing for changes every year, and larger course correctionswhen required. We will also maintain the practice of communicating the revised version of our strategyto the organization annually.Please note that as of the writing of this document the final budgets had not been set for FY13, and wehave not yet finalized our five year model. As such, the financial numbers presented here should be seenas directional, not precise. Vistaprint CONFIDENTIAL © FY2012 ON 2
  4. 4. 02Data and beliefs that inform our strategyReinvigorating growth was the central theme in examined “how we do things around here”,last year’s five year strategy and it remains the deepened our understanding of how some of ourcentral theme in this updated strategy. This is business approaches that had become liabilities,because we believe that continuing our history of and set in place plans to address these issues:growth will provide the greatest value to ourcustomers, career opportunities for our employeesand long-term payoff for our investors. hypothesis that during the FY03-FY10 timeframe we had built a culture characterizedReinvigorating our growth will not be easy. by a total lack of customer centricity. ClearlySuccess requires breaking from prior trend lines of we delivered strong value to customers – if 3slowing growth: from FY09 to FY11 the annual we had not, we could not have grown as werevenue increase we achieved each year had did. But our culture and our resulting businessstalled and our growth rate expressed in practices led us to develop value propositionspercentage terms was falling rapidly. Last year’s and marketing activities that reduced productstrategy was based on our recognition of multiple quality, limited customer service andreasons for our slowing growth in recent years and deprioritized user experience in favor ofthese impediments to growth remain valid from short-term transaction value, with little to noour current vantage point twelve months later: validation of value as viewed from the perspective of the customer, retention, or long term LTV and ROI. through the 2000s was running out of fuel. That model had been driven by vertical integration, free offers, rapid-fire new product were too decentralized. Without tops down, introductions, geographic expansion decisive and deliberate choices we would not throughout Europe and to Australia and New be capable of making the large, concentrated Zealand. As effective as these strategies were strategic bets that are necessary to evolve of in the past, they would not allow for our business model and company culture. We continued rapid growth. must “invest to win” in a limited number of large scale bets to reach our vision, our aspirations for customer centricity, our revenue entrants and niche players, as well as evolving objectives, and our long term shareholder ecommerce standards mean we are no longer value creation plans. Investing to win means delivering jaw dropping customer value. making decisive choices to concentrate enough talent, operational resources and financial investment on our chosen areas of focus, by year’s plan stated that “we need to organize saying no to other opportunities and by ourselves effectively to manage the growing aligning the entire organization behind the complexity of Vistaprint. And we need to chosen priorities. change our culture so that the customer is at the center of everything we do. This will be a hard, long and uncomfortable process, but not appropriately weighted among three one we can avoid if we are serious about categories: reinvigorating growth in the core, achieving our goals.” laying foundations for future growth beyond the core, and long-term research andAs we worked throughout FY12 to implement and development.update our rolling five-year strategy, we seriously Vistaprint CONFIDENTIAL © FY2012
  5. 5. 02Data and beliefs that inform our strategyOver the past year we have also articulated our choices last year were directionally correct. This isdeeply held beliefs about our sources of why the FY13-17 rolling strategy has a very highcompetitive advantage as a means to be more degree of continuity from the previous version,explicit about the choices we are making and why. structured around the same four key themes asWe have committed to reinforcing the following last year:core competencies, also referred to as our threepillars of competitive advantage: World class engineering and capabilities development: Investing heavily to “refurbish” 4 our first pillar – the technology focus that drove our breakthrough business from its earliest days – by investing in architecture, recruitment, career development, intentional innovation, improved decision making, scalability and efficiency. Marketing: Expanding beyond our traditional strength in Internet-based promotionally-driven marketing to add other strengths: deep understanding of markets and customers, go-to-market methods, value-added customer service, product marketing, off-line channel advertising, multi-year LTV payback analysis and brand. Manufacturing and supply chain management: Making major improvements to quality, delivery reliability, scalability, throughput time and the ability to produce products of quality and variety that few, if any, competitors can replicate while simultaneously extending our low-cost leadership position.Customer and competitive research over the pasttwelve months has validated our marketopportunity. We have deepened our convictionthat Vistaprint’s business model is a disruptive andpowerful one that holds the potential for majorand multi-decade market share increases and valuecreation. But because markets move over time, inorder to attain that potential, we must invest inconstantly improving our performance and ourcapabilities.A year into the strategy, we believe that our Vistaprint CONFIDENTIAL © FY2012
  6. 6. 03Progress Report on last year’s strategyLast year’s strategy constituted a major course we can turn around our growth trajectory.change on our long-term journey. It was analogousto a sailing ship that changes tack, bringing its behind target. Both will miss FY12 objectives,bow through the wind to change course but still and budget revenue expectations for FY13 areen route to the original ultimate destination. We 11% and 7% below the five year plan forhave started on a bold new direction that webelieve is best suited to create a transformational As a total company, the above combines toand enduring business institution for the benefit of a revenue shortfall for FY12 that is expectedour customers, our employees and our investors. to be about $31 million, or 3% below budget. The recently completed budget for FY13 5How have we done overall, twelve months after shows this shortfall worsening to $65 million,having set out in our new direction? It depends on or 5.3% below our strategic plan. In terms ofthe area of the strategy we look at. We havemade great progress toward a more customer on track to grow only $181 million in FY12,centric culture. We have ramped up investments in versus a plan of $212 million, and believe weproduct substrate quality, service level will grow by only $188 million in FY13, versusimprovement, user interface design, LTV the original objective of $233 million.advertising, and manufacturing. We have rampedour Capabilities resources and laid FY13 plans tocontinue to do so. And we have greatly refinedour foundations for future growth, with theinvestments in and plans for Albumprinter, Websand GEM.But all is not perfect – and we have manychallenges ahead. While confident in our choices,we have proven out none of our majorinvestments areas: V2C, M3P, LTV, multi-yearramp of resources, Webs, Albumprinter or GEM.functionally-defined organizational structure that isdesigned to support the strategy, but this entailssignificant disruption to our management routinesand practices. Most worrisome, we have hadmixed results relative to the five-year financialre-igniting our growth. Rectifying where we arefalling short in revenue is critical to our ability tocontinue to invest in other parts of our strategy. Asummary of where we stand with revenue is asfollows: FY13 budget anticipates that North America will stay on track to last year’s five year plan. This is great news and a clear indication that Vistaprint CONFIDENTIAL © FY2012
  7. 7. 03Progress Report on last year’s strategyOn the gross margin line, the story is different: If in future years we do not accelerate revenue atEurope is outperforming its five year target, NA is a rate closer to our strategic plan, this will continue to reduce our ability to invest in keycompany-wide level, gross margin is slightly better aspects of our strategy. This is especially truethan plan for FY12 but current budgets for FY13 because the strategy is premised on marginindicate that it will be 100 basis points lower thanplan. We need to work on the combination of FY14 we need to start a three year leverage march back to the profit levels we were achieving priorto make sustained future improvements in ourgross margin even as we invest heavily in 6improved substrates, packaging and shippingmethods.We are still achieving our bottom line objectives inFY12 because we are growing operating expenseand LTV advertising slower than planned. But aswe budgeted for FY13, anticipated revenue andgross profit shortfall required us to make cuts toother components of our strategy. In fact, thecombined impact of lower revenues and lowergross margins in our budget means we expect tohave $33 million less in gross profit in FY13 thanwe would have had if we met our original 5-yearrevenue and GM objectives. We set the FY13budget with the objective of balancing the multipledemands of our strategy with the need to alsomake up for most of this loss in gross profit. Albumprinter, GEM and the impact of share expected in the original plan, but in many areas of the business this has required squeezing of costs. each of Webs, Albumprinter and GEM which foundations for future growth beyond our core. dilution from M&A, our FY13 budget seeks to objectives. Vistaprint CONFIDENTIAL © FY2012
  8. 8. 04Evolution from last yearIn light of the experience, successes andchallenges of the past year, we are now adjusting the acquisition of Albumprinter to targetthe sails on the strategy ship which turned so Sentimentalist H&F consumers in EUdecisively one year ago, tweaking our courseheading while working to build momentum. To use future growth. We see Core Plus customers inanother analogy, we are mid-stream in a difficult the core business and an upscale home andcrossing, the going is not easy nor is it exactly as family positioning under the Albelli brandwe planned, but we are not about to changehorses. If we fail to gain momentum on our new Up-market, and remove the more generalcourse, if we don’t make continued progress Up-market adjacency. We do not anticipate 7across the river, then we will need to change pursuing a premium small business brandstrategy. But for now, our focus is on makingtactical adjustments, to battening down thehatches, and to continuing forward. Over the past for near-term physical product growth asyear, we have achieved greater strategic focus and 1clarity by being more precise about initiatives, and China. Financially, we are “doubling down”interactions, and timing within these key themes, on our investment in GEM because we believeand by fleshing out our foundations for future it has the potential to become our singlegrowth. The most important changes from last largest revenue and profit growth area in theyear are: FY17-22 timeframe. Business and Consumer in our core business approach: o Australia and NZ will follow the same global strategies as our Vistaprint-branded business in NA and EU. o Based on encouraging uplift from the we believe there may be a significant require stepping back for a full scale strategic review of that market in FY13. o Closed down our nascent efforts in Taiwan and Korea, and transferred Singapore to GEM. of our foundations for future growth, into three separate digital elements, appearing Webs / Freemium Digital 1 Vistaprint CONFIDENTIAL © FY2012 but with no material revenues or costs associated with this effort.
  9. 9. 04Evolution from last year non-cash accounting charges related to M&A and tax accounting, but their magnitude is a strong indication of o Reduced our FY13 revenue budget by commitment to building up these approximately $70 million, to $1.19 foundations for future growth beyond our billion2, which would be growth of just core. 19% over FY12 -- below our previously anticipated 22% growth. o Planned for deterioration in gross 8 margin, versus anticipated improvement, due to the cost of V2C improvements, higher costs, lower volume, less favorable mix. o Squeezed growth in advertising and operating expense in most areas of the business to achieve the same absolute profit as originally targeted, which requires an expansion of our net margin from 5.2% to 5.5%. reinvigorate growth closer to our plans, we are making contingency plans to drive stronger margin leverage if these improvements do not materialize. o Balance sheet and share buybacks absence of any share repurchases or M&A, our cash could grow to almost $300 million by now. In fact, due to the acquisition of Webs and Albumprinter, and significant share repurchases, we are now in a net debt position. Our financial strength allows this leverage, and we believe these are investments that will drive significant shareholder value over the long term. o Dilution from acquisitions & GEM as follows: participation in Namex 2 Vistaprint CONFIDENTIAL © FY2012 target.
  10. 10. 05Our FY13-17 corporate strategy in summaryReinvigorate growth in our core be conducting a strategic analysis of how toWe will continue to invest to win in our corethrough V2C, M3P and LTV. Our acquisition of Webs provides the vehicle to be a leader in the Freemium Digital space. We will empower Webs to function as a our customers to earn their lifetime loyalty, stand-alone brand and autonomous operating and encompasses our efforts to Raise the unit to learn about the digital market and Baseline, the Winning in Small Business and grow freemium aggressively. We will 9 Major Player in Consumer global segment encourage this part of our digital business to strategies, and our Customer Commitments develop additional free offers, and, in particular, to pursue Pagemodo Facebook offers and to develop other products that can grow through rapid viral expansion. At the same time, we will also provide Vistaprint KIFG, pursued through partnership between support and expertise to improve customer MSC and the plants, remains committed to acquisition, upsell to premium paid digital achieving step function changes in quality, products, and cross-sell to print products. throughput time, on-time delivery, and unit cost. Our aim is to move from best-in-class Our acquisition of Albumprinter will be manufacturing in the print industry to truly similarly pivotal in driving the development of world class manufacturing across industries. a future growth foundation. In addition to KIFG will expand beyond its initial focus with building the Albelli brand via a premium positioning in the consumer space, targeting with > 12 month CMV payoff but positive Sentimentalist H&F consumers. In FY13 NPV based on estimated customer lifetime Albumprinter will pursue geographic expansion to the UK and to Nordic countries. As with how we manage our total marketing spend, Webs, we will pursue an autonomous optimizing ROI across channels, measuring the operating unit approach to maintain market / impact of non-direct channels on our existing customer focus, and nimbleness, and to create base vs. new customer acquisition, a center of excellence in high-quality photo understanding brand halo, etc. Given the products. results available through Q3 FY12 which confirmed that extending the payback horizon for marketing spend makes financial and economic sense, CMOs will now manage LTV—and the tradeoffs between LTV and non-LTV spend—within their total external marketing portfolio.Lay foundations for future growthWe will lay foundations for future growth in Webs Vistaprint CONFIDENTIAL © FY2012
  11. 11. 05Our FY13-17 corporate strategy in summary In GEM, we will take an 80/20 approach to the market opportunity, limiting our focus to Asia, and, within Asia, concentrating first and foremost on India and China, with a small effort in the Singapore market. In later years we plan to expand to Southeast Asia, Taiwan, and Korea. We expect to push off a move into Brazil and the southern cone of Latin America for at least three years, possibly longer, barring future changes at the corporate 10 strategy level, or unforeseen success levels that “self-fund” such expansion. In these emerging markets, we expect to operate one or more business models that will be different from the business model used in our more developed markets. One example is the Free products to build a customer franchise that we can eventually monetize through print cross-sell, digital upgrades, or alternative we anticipate deploying a traditional online partnership models in many markets. We believe that locally relevant user experiences, content, and partnerships will be critical, and that, given transportation logistics and tariff regimes, in country manufacturing will typically be required. apan - Finally, in FY13, we will take a step back, and undertake a significant strategy and path forward, and how this fits with our future growth plans. Vistaprint CONFIDENTIAL © FY2012
  12. 12. 05Our FY13-17 corporate strategy in summary management, Finance and Legal. Each ofInvest in a multi-year resource ramp these functions is growing, but not as much as originally anticipated in last year’s five year strategy. pressures we are encountering due to revenue shortfalls in FY13, we believe that increasing our capacity for technology delivery is critical to achieving our long term growth ambitions, To fund this strategy we decided to forgo earnings and as such are continuing with the planned in the near term in favor of much higher earnings multi-year ramp of our capabilities teams and 11 budgets. we invested approximately $40M in sacrificed earnings compared to a “business as usual” continuation of past practices. We expect this to re-architecture process to bring our technology rise to over $50 million of reinvested earnings in back toward state of the art, and to increase FY13. future Capabilities productivity and business and necessary investment because the choices we made in terms of how to develop and Webs, share buybacks, or the recent decision have created an accumulation of “technical debt” that that is beginning to have serious impacts on our business and threatens to constrain future choices. that we need to begin “making the turn” – expanding our margins in each of FY14 to FY17. This will require improvements to gross and gross margin shortfalls in the FY13 budget margins, marketing spend efficiency, and have meant that we have needed to leverage of our operating costs across the significantly constrain resource ramps in other company. areas of the business such as HR and talent Historical Last Year’s Five Year Plan : FY 2010 FY 2011 FY2012 FY 2013 FY 2014 FY 2015 FY 2016 Net Income $68 $82 $59 $65 $111 $168 $237 (M) Net margin 10.1% 10.0% 5.7% 5.2% 7.3% 9.3% 11.2% GAAP EPS $1.49 $1.83 $1.34 $1.43 $2.40 $3.58 $4.98 Current Outlook FY2012 FY 2013 (estimate) (budget) Net Income $58 $65 (M) Net margin 5.8% 5.5% GAAP EPS $1.34 $1.43 Vistaprint CONFIDENTIAL © FY2012
  13. 13. 05Our FY13-17 corporate strategy in summary o Capital expenditure increases that will buybacks and investment in GEM is relatively approach $100 million in FY13, our complicated. The buybacks have been strongly all-time high. accretive, even after accounting for the cost of debt incurred. The acquisitions are strongly o We are growing our technology budgets dilutive, reducing our GAAP income by almost to over 13% of revenue in FY13, up 200 50% in FY12 and with a still strongly negative impact in FY13 and FY14. In GEM, the cost of 2011. This is an incremental investment of the Namex and India investments, plus the approximately $25 million. buildup of the Singapore team, are also 12 significantly dilutive. $20 million tax, and on-going operating writing of this memo, but broadly speaking losses for the next several years. price. million in operating losses over the equity in Namex in FY13, and the option in FY17 to purchase another 35% which will be valued based upon the size and profitability of Namex at that time. o Approximately $350 million to repurchase about 25% of our company in FY1213.The following bullet points provide some specificnumbers to put into perspective the enormousfinancial resources we are deploying to ourstrategy: core: o Investments in V2C of literally tens of millions of dollars annually for substrate and packaging improvements, customer research, increased DSS availability. o Increase to our advertising budget by approximately 3% of revenues in FY12-13 for LTV investments: well over $60 million of incremental investment. Vistaprint CONFIDENTIAL © FY2012
  14. 14. 06Focus—or what we will not doFocus is about saying no. In general, our FY13-17 the H&F value proposition will mainly draftstrategy is much more deliberate and explicit behind the improvements being driven byabout the sequencing of the various elements of investments in core customers e.g., to improvethe strategy. We made hard choices about what the site experience, to create a customerwe will not do in order to ensure sufficient centric culture, etc. Note that we will beresources will be applied to the areas where we doing limited projects for high value areas inseek to make step function changes. than we would in a world of greater resource significant reduction in our profits for FY12-14 availability. 13 relative to what we could have achieved under the financial target setting approach we used from FY06-11. Traditionally, we have operated immediately, foregoing significant synergy value with the reality of organizational constraints net income margin will be less than 5%. This and, importantly, the value of keeping Albumprinter as an autonomous operating unit that is charged with pursuing a distinct as we begin to ramp on the upside of the business model. be lower and our revenues higher than they otherwise would have been, allowing us to “Lexus” brand in the small business space in continue to invest approximately $50M the next four years. We still believe this is an annually in incremental investment versus interesting opportunity, but it is a lower “business as usual” as pursued from FY05-FY11. priority than the confirmed aspects of our In saying no to short term profit maximization, strategy. we are acting much more like a high-growth, pre-IPO company or a private equity-backed South America, Russia, Middle East or Africa we believe this will allow for major value for multiple years, so we can focus on Asia. creation over a multi-year period. Within Asia, FY13-14 we will concentrate on India and China, with modest efforts in Singapore. We will hold off on entering new region for our core business. NA, EU and GEM markets with physical products, AU/NZ will all operate under the same overall leveraging instead the FFD approach to build a strategic approach and priorities, changing the customer base in the interim period. emphasis to go-to-market approaches and tactics. value propositions in FY13-14 except to the concentrate as much funding as possible to extent that they happen to overlap with our the expansion of our technology teams. top priorities for Core customers. improvements to our home and family offering under the Vistaprint brand. As with Core Plus, Vistaprint CONFIDENTIAL © FY2012
  15. 15. 07Operationalizing our strategyOperationalizing our strategy too tied to our old approach of highlyWe have made important decisions in the last year decentralized execution and out of step with ourin a number of areas outside our corporate corporate strategic direction. The effort was led bystrategy, but directly related to its an “Action Learning” team composed of 7 Viceoperationalization, that are worth mentioning here: Presidents from around the organization who followed a Talent, Communication and high challenge business project with a deliberate, accelerated development environment. Based on consultations with more than 100 colleagues 14 around the organization, the GET, and approval byStrategy pyramid Robert and the GET, the project resulted in several changes to our strategy pyramid, which we believeThe strategy pyramid has been in place for offer a stronger context for our corporate strategy:multiple years. This structure is not a unique wayof viewing or communicating global strategy. Manycompanies have used similar frameworks Enduring Values. Our Vision has not changed:successfully in the past and will no doubt continue We empower millions of people worldwide toto do so in the future. After all, it’s a simple and make a living, make a difference, make avery visual way of aligning a long-term vision to a connection. The new Enduring Values replaceset of medium-term tactics and specific short-term our Guiding Principles, and move higher in thetasks and programs. pyramid because they are intended to have greater longevity. These two elements of theSpecifically, our pyramid is intended to convey the pyramid set the tone and the direction forfollowing important messages: everything that follows. The purpose of these statements is to rally our employees around our aspirations of the kind of company we will Our vision and values remain relatively “timeless” intended to forge a common view of where we’re going and, in doing so, to inspire pride, view so that changes to strategy reflect a ambition and passion. process of evolution, not revolution Audacious Goal. While the name has changed level of the pyramid support the level above, slightly to make it simpler and more unique to and guide the level below Vistarprint, our goal has not changed: 30M loyal customers by 2020. This medium term plans and individual goals: We continually objective bridges between the long-lived review, test, evaluate and reorient our near nature of the Vision and Enduring Values, and term plans the Rolling 5-Year Strategic Plan. performance: Ultimately, the success of any populates the Rolling 5-Year Strategic Plan. strategy depends on those who implement This middle layer organizes, integrates and and deliver it. choses what we will do to achieve our Audacious Goal.In FY12, we took another look at our GuidingPrinciples, which we had felt for some time were Vistaprint CONFIDENTIAL © FY2012
  16. 16. 07Operationalizing our strategy Resource allocation Year Priorities and Initiatives, and Individual In order to focus, and to invest to win, we are modest edits to the language to reflect our shifting from our prior bottom up IBP allocation and prioritization process to one which is updated annually. predominantly top down. The GET will review and allocate resources across a portfolio of functionallyOrganizational structure defined investment pools, driven by priorities 15optimally support our corporate strategy. Asalready extensively communicated, our new For example, in the product marketing arena, theorganizational structure will be: Global Marketing team will receive the lion’s share of development resources so as to be able to make strong progress toward global solutions. Manufacturing, Capabilities, HR, Finance and These solutions have been and will continue to be Legal deployed across NA and EU developed with meaningful input from the geographically focused teams, but, in the end, will be a single global roadmap. In the vast majority of cases NA, EU and AU/NZ will follow, not lead. New Zealand will follow the same core Within regions, the marketing leadership teams will strategies as NA and EU. decide which specific marketing projects to fund within the constraints of their regional investmentWe believe this construct will enable greater pools.integration and coherence in how we formulateand operationalize our strategy. For example, we A similar top down approach will be used forwill have increased ability to identify key strategy manufacturing resource allocation. The Globalquestions “centrally” and deploy resources to Manufacturing roadmap will guide and constrain our IBP decisions, driving Vistaprint-wide stepbetter positioned to rationalize investments across function improvements while taking into accountregions in function of global strategy—which will at plant-specific conditions and needs. Of course,times mean forgoing evaluation and pursuit oflocal strategies beyond go-to-market approach. Inthe GET Operating Committee, we will have the functional direction cannot mean siloed ormechanism to manage, pressure test and ensure uncoordinated efforts.consistency in the way we execute our strategy.Finally, this structure will allow us to stay nimble, Importantly, we need to raise our success ratesespecially in targeted growth areas that require through more stringent prioritization of IBPsignificant modifications of our business model in projects, decisive resource investment behind thoseorder to succeed. Specifically for Webs, bets we chose to make, better execution, andAlumbprinter, and GEM, we need to find ways to greater accountability for results for projectallow these foundations to diverge from the sponsors and business owners. We will need to“mother ship” so as to innovate and move quickly, become better at determining the true value of IBPwhile planning and clarifying longer term projects so we can achieve the optimal return onintegration strategies. our constrained Capabilities resource pool. Vistaprint CONFIDENTIAL © FY2012
  17. 17. 07Operationalizing our strategyAnd we must continually recognize that this return 4. Lay foundations for future growth andis a function of IBP portfolio quality and achieve the objectives required to create valueCapabilities capacity and cost—and, as such, a through our acquisitionscompany-wide, executive-level responsibility. 5. Drive higher return on Capabilities through better solutions and delivery effectivenessCorporate dashboard 6. Create a capable and engaged set of leadersAcknowledging the importance of measuring 7. Deliver on multi-year financial goalsprogress against our long term strategy, we havedeveloped and are implementing this year a These metrics will be quarterly, trailing twelve 16corporate dashboard for this purpose. This tool is month or annual measures, and for most we willintended to provide a medium term strategic view,developed in and used by other parts of the The primary audience for the corporate dashboard will be the GET, though the regional leadershipobjectives of the corporate dashboard are: teams and senior leadership of various functions will also be actively involved in using this new management tool. Secondary audiences will be the providing a clear, shared and actionable view Supervisory Board and Vistaprint overall—once we of the strategy are confident this is a useful measurement tool, we intend to share it transparently across the to measure success of our strategy, and create organization. Beginning in Q1 FY13, the GET will accountability review and discuss the corporate dashboard results quarterly. Each year as we complete the update of internally about progress against our strategy the corporate strategy, we will likewise adjust the corporate dashboard to ensure it is in alignment.In designing the corporate dashboard, we exploredVistaprint-specific approach closely aligned with theways we have structured and communicated ourcorporate strategy. As such, the corporatedashboard is classified into seven areas, with moregranular metrics under each of these: 1. Create value for customers to earn their lifetime loyalty 2. Achieve a step function improvement in our manufacturing capabilities 3. Embrace digital and the integration of physical-digital offerings as critical to sustaining our core and creating the next wave of growth Vistaprint CONFIDENTIAL © FY2012