Directories face increasing competitive pressure from large players offering performance-based advertising and vertical competitors offering request for quote (RFQ) listings. The failure of directories to offer their own performance products has allowed these new entrants to grow rapidly by capturing traditional directory revenue. Companies like ServiceMagic in the US and PagesJaunes in France have seen significant success with their RFQ offerings, prompting both new competitors and traditional directories to enter the space. Some directories are acquiring RFQ players to boost their performance advertising capabilities, while others are building these services organically.

1. An overview of rise of ‘Request for Quote’ offerings by Yellow Pages directories April 28, 2011

3. The failure of directories to offer compelling performance based products has provided new entrants with the oxygen to penetrate traditional iYP profit pools

4. This trend is particularly stark in the US, where the proliferation of new entrants is particularly rapid

5. Next generation directories are offering small businesses performance products and achieving 30%+ revenue growth

6. ServiceMagic is the dominant successful RFQ player in the USA with a $200m+ revenue run rate (with plans to enter a variety of European markets)

7. The success of ServiceMagic in the US has enticed a variety of players to enter the space – these players are growing fast by offering performance based products to small businesses

8. Some traditional directories are realizing the opportunity to play and win – using their sales force reach to offer new performance products to small businesses

9. Sensis acquired quotify.com.au, Australia’s leading RFQ player

10. PagesJaunesacquired Keltravo’s RFQ business to capture the small business lead generation opportunity

11. KellySearch acquired Approved Index to capture the B2B lead generation opportunity

12. Rogers Ventures acquired homerenovationguide.com to increase the monetization of zoocasa.com

14. Online YP Print Yellow Pages The failure of directories to offer performance based products provides new entrants with access to the YPs’ traditional profit pools Revenue Trends – Yellow Pages (USA) (2009 – 2014) Industry Revenue – Yellow Pages (USA) (2009 – 2014) Rate of Revenue Growth/Decline – Yellow Pages (USA) (2009 – 2014) Yelp, ServiceMagic & Reachlocalconsistently growing at 25%+ pa Industry shift underway – significant pools of revenue at stake $12.6 -3.2% 13.5% $10.7 16.2% 33.6% YP’s pressured to monetize online faster (since print is in decline) 85.7% -8.0% 66.4% % Share % Share 5-Year CAGR Proliferation of new entrants is particularly rapid in the US - next generation (online only) players like yelp and service magic are taking share Source: Kelsey Group 2010 4

15. Next generation directories are offering small businesses performance products and achieving 30%+ revenue growth Annual Revenue of Small Business Lead Generation Players (M) (2005 – 2009) $m $m Dotted line 5

17. ~6m projects initiated per year (with the opportunity to sell 3 leads for each project)

18. Coverage of 250+ verticals

19. In Q3 2010, Service Magic increased advertiser coverage by 28% (now have 80,000 advertisers) = advertisers like the productACQUIRED 123Devis.com, a French lead generation business with the largest network of tradespeople in France ACQUIRED 123GetAQuote.co.uk - leading UK lead generation platform

20. The success of ServiceMagichas awakened a variety of players – growing fast & offering performance based products 7 New competitors are entering the local performance marketing space in the US….

21. Some directories are realizing the opportunity to play and win 8 Directories are leveraging their sales force reach to offer new performance products to small businesses ACQUIRED ACQUIRED See case studies in following slides BUILT … and more licensees soon to be announced! LICENSED

22. PagesJaunes acquired Keltravo’s RFQ business to capture the lead generation opportunity 9 Case Study: PagesJaunes & Quotatis Keltravo is a stand-alone multi-vertical RFQ brand now owned by PagesJaunes Keltravo is PagesJaunes’ weapon to beat Quotatis – the European equivalent of ServiceMagic PagesJaunes has made a bet on vertical portals – accelerated with the acquisition of Keltravo – the leader in online quotations in the home improvement segment

23. KellySearch acquired Approved Index to capture the B2B lead generation opportunity 10 Case Study: Reed Business Information & Approved Index KellySearch supercharged its RFQ initiative by acquiring a multi-vertical RFQ business Approved Index now owned by Kellyseach Reed Business Information has made a bet on a branded multi-vertical portal – accelerated with the acquisition of Approved Index – an online B2B marketplace in the UK across more than 100 different sectors

24. Sensisis using Quotify to power their RFQ deployment across Yellow Pages’ assets Sensis is working with Quotify to power their request for quote on and off their Yellow Pages network Vertical specific sites (Home Improvement) Portal site with 40+ verticals Sensis voice directory assistance products Yellow Pages IAB friendly form widget – consumers complete a form within an ad unit

25. Eniro is building their own reverse auction business, - starting from scratch is a slow path 12 Case Study: Eniro Eniro is strategically committed to RFQ - Eniro has created a sub brand ‘EniroOffert’ for their RFQ offering After 6 months, EniroOffert is generating a total of only ~10 projects per day across 6 verticals Whereas Kellysearch, ServiceMagic & PagesJaunes acquired hundreds of verticals and thousands of projects instantly via acquisition

26. Zoocasa acquired homerenovationguide.com to boost the monetization of its traffic 13