<PAGE> 1
[LOGO VNU]
[LOGO ACNielsen Acquisition]
December 18, 2000
<PAGE> 2
INTRODUCTION
Presenters: Rob van den Bergh Chairman of the Executive Board
Frans Cremers Member of the Executive Board
Chief Financial Officer
Jerry Hobbs Member of the Executive Board
Chief Executive Officer, VNU Inc.
Topics: VNU's Strategy and Transaction Overview
Strategic Rationale
Summary Financial Impact of ACNielsen Acquisition
Overview of ACNielsen
Implications for VNU
Conclusion
[VNU LOGO] [ACNielsen LOGO]
1
<PAGE> 3
VNU'S OVERALL STRATEGIC INITIATIVES
- Continue to expand leadership in marketing and media information
- Targeted expansion in business media in the U.S. and Europe
- Expand directories businesses in Europe
- Own market leading, branded information businesses
- Maintain balanced geographical revenue and EBITDA contribution
- Operate under a conservative capital structure
[VNU LOGO] [ACNielsen LOGO]
2
<PAGE> 4
DEVELOPMENT OF CURRENT PORTFOLIO
<TABLE>
<CAPTION>
1993 - 1995 1996 - 1998 1999 - 2000
NMR, Miller Freeman (US),
Acquisitions BPI and Bill World Directories and ACNielsen
Divestitures Printing Broadcasting assets Newspapers
1993 1996 2000*
---- ---- -----
<S> <C> <C> <C>
BUSINESS MIX
(EBITA)
Marketing & Business
Information 14% 44% 72%
Directories 28%
Consumer Information 86% 56%
GEOGRAPHIC MIX
(EBITA)
The Netherlands 80% 52% 12%
Rest of the World 20% 48% 88%
</TABLE>
* Full year pro forma for the acquisition of Miller Freeman (U.S.),
ACNielsen, and the possible divestiture of the Consumer and Educational
Information Groups
[VNU LOGO] [ACNielsen LOGO]
3
<PAGE> 5
TRANSACTION OVERVIEW - KEY TERMS
<TABLE>
<S> <C> <C>
- Acquisition (ARROW GRAPHIC) ACNielsen (NYSE: ART)
- Offer Price (ARROW GRAPHIC) USD 36.75 per share in cash
- Offer Value (ARROW GRAPHIC) USD 2.3 billion
- Transaction Value (ARROW GRAPHIC) USD 2.3 billion
- Form (ARROW GRAPHIC) Cash tender offer
- Closing (ARROW GRAPHIC) Expected first quarter, 2001, subject to
regulatory approval
- Financing (ARROW GRAPHIC) Interim bridge facility; expected to be largely
repaid by proceeds from the possible divestiture
of the Consumer and Educational Information Groups
(ARROW GRAPHIC) An equity issue in the order of EUR 500 million
will be considered
</TABLE>
[VNU LOGO] [ACNielsen LOGO]
4
<PAGE> 6
STRATEGIC RATIONALE FOR ACNIELSEN ACQUISITION
- Creates the premier global marketing and media information franchise
- Marquee Nielsen brands
- Global scale and scope
- End-to-end provider of "must have" media and marketing information
- Deep customer relationships
- Complementary with many of VNU's media and marketing services
- Retail measurement/consumer panels
- Alliances like Lifestyle Track
- Television Audience Measurement
- Creates the leading, worldwide TAM business
- Internet audience measurement
- Increases ownership in NetRatings to over 60% and that in eRatings
to over 90%
- Well positioned for the convergence of the PC and television
- Filmed entertainment information
- ACNielsen's EDI expands VNU's coverage of the industry
- Advertising expenditure measurement
- Leveraging Monitor Plus/TAM
[VNU LOGO] [ACNielsen LOGO]
5
<PAGE> 7
CLEAR LEADERSHIP IN THE MARKETING INFORMATION INDUSTRY
2000 Estimated Market Size = USD 14.0 Billion
Revenues from Marketing Information
(USD in Millions)
<TABLE>
<CAPTION>
VNU/ WPP/ Interpublic/
ACNielsen* IMS Kantar TNS IRI NFO GfK
---------- --- ------ --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
2,599 1,100 761 678 546 500 389
Market Share 19% 8% 5% 5% 4% 4% 3%
</TABLE>
* Pro forma for ACNielsen, Nielsen Media Research and NetRatings
[LOGO VNU] [LOGO ACNielsen]
6
<PAGE> 8
POSSIBLE IMPLICATIONS FOR VNU'S PORTFOLIO: MORE FOCUS
- Intend to explore the divestiture of the Consumer Information Group in
2001
- Expected 2000 EBITDA of approximately EUR 150 million
- Intend to explore the divestiture of the Educational Information Group
in 2001
- Expected 2000 EBITDA of approximately EUR 18 million
- Transforms VNU into a business information and directory company
- Greatly reduced exposure to cyclical advertising
- Vast majority of revenues are recurring in nature
- Non-print: 70% of total revenues -
- International nature of ACNielsen results in no significant change of
geographic mix of revenues (55% USA/Canada, 45% Europe and Rest of
World), whilst The Netherlands reduces to approximately 7% (after
possible divestitures)
[LOGO VNU] [LOGO ACNielsen]
7
<PAGE> 9
ACNIELSEN'S FINANCIAL CHARACTERISTICS
- Visible, predictable revenue streams
- Multi-year local contracts with staggered end dates
- High barriers to exit
- Non-cyclical business
- Investment in eRatings
- Investment results in losses today, profitability by end of 2003
- 2000 investment of USD 20 million
- 2001 investment of USD 32 million
- 2002 investment of USD 15 million
- One-time restructuring charges for Operation Leading Edge
- Further upside in margins combined with steady top-line growth results
in double digit EBITDA growth
[LOGO VNU] [LOGO ACNielsen]
8
<PAGE> 10
UPDATE ON CURRENT INITIATIVES AT ACNIELSEN
- Improving efficiency through Operation Leading Edge
- Re-engineering "data factories" to improve information process and
content delivery
- Increase speed of data delivery
- Borderless system
- Streamlined back office/rationalized facilities
- Increase EBIT margin from 10% [ARROW GRAPHIC] 13%+
- USD 135 million charges in period 2000 - 2002
- USD 52 million, USD 60 million and USD 23 million,
respectively
- Responding to IRI lawsuit
- VNU believes IRI's claims are without merit
[LOGO VNU] [LOGO ACNielsen]
9
<PAGE> 11
ACNIELSEN FINANCIAL PERFORMANCE
(USD in Millions)
<TABLE>
<CAPTION>
1998 - 2001
1998 1999 2000E(a) 2001E(a) CAGR
---- ---- -------- -------- ----
<S> <C> <C> <C> <C> <C>
Total Revenue 1,425 1,525 1,589 1,677 5.6%
Core EBITDA(b)(c) 178 206 244 276 15.7%
MARGIN 12.5% 13.5% 15.4% 16.5%
Core EBIT(b)(c) 92 123 159 184 26.0%
MARGIN 6.5% 8.1% 10.0% 11.0%
Bridge to Reported EBITDA
Core EBITDA 178 206 244 276
eRatings -- (1) (20) (32)
Operation Leading Edge -- -- (52) (60)
----- ----- ----- -----
Reported EBITDA 178 205 172 184
===== ===== ===== =====
</TABLE>
(a) Consensus research analysis projections.
(b) Before losses incurred on eRatings and OLE charges.
(c) Year 2000 expenses included in operating costs; 1998 USD 16 million and
1999 USD 12 million.
[LOGO VNU] [LOGO ACNielsen]
10
<PAGE> 12
SUMMARY FINANCIAL IMPACT
- Attractive purchase price multiple
<TABLE>
<CAPTION>
2000 2001
---- ----
<S> <C> <C>
Transaction Value/Revenue 1.5x 1.4x
Transaction Value/EBITDA(a) 9.6x 8.5x
</TABLE>
- Accretive to 2001 cash EPS
- At least 5% depending on timing of events(a)
- Accelerates VNU's cash EPS growth rate going forward
- Pro Forma 2001 EBITA/Interest coverage of over 4x(a)
- Based on acquisition of ACNielsen and possible divestiture of the
Consumer and Educational Information Groups
- Lower ACNielsen margins counter balanced by strong strategic
rationale and EBITDA growth
(a) Excluding losses in eRatings and before OLE charges.
[VNU LOGO] [ACNielsen LOGO]
11
<PAGE> 13
OVERVIEW OF ACNIELSEN
- Global provider of market research, information and analysis to the
consumer products and services industries
- Provides clients with "must have" marketing and sales data to make critical
decisions about their products and markets
- Industry standard for measuring and understanding sales, much like
Nielsen Media Research
- Unmatched global presence
- 9,000 clients in over 100 countries
- Recognized brand name and expertise
- Blue chip client list
- Multi-year contracts on a local basis
- Deep management team with experience and insight into consumer behavior
- Approximately 21,000 employees
[VNU LOGO] [ACNIELSEN LOGO]
12
<PAGE> 14
REVIEW OF ACNIELSEN'S BUSINESSES
(USD in Millions)
[ACNIELSEN LOGO]
RETAIL MEASUREMENT
SEGMENT:
- Measures what is sold to consumers
- Identifies causal factors and provides insight
CLIENTS: - Primarily fast moving consumer goods manufacturers and retailers
SCOPE: - 80 countries
CUSTOMIZED RESEARCH
SEGMENT - Determines how and why consumers buy
- Simulated test marketing (BASES)
CLIENT - Wide-range including fast moving consumer goods, computer
telecom, automotive financial services, and travel
SCOPE - 60 countries
MEDIA RESEARCH
SEGMENT - Measures what consumers watch, hear and read
- Measures motion picture box office receipts and moviegoer habits
- Measures Internet audiences
CLIENT - TV and radio broadcasters, cable and satellite providers,
advertisers, publishers, motion picture studios, film exhibitors,
and Internet service providers
SCOPE - 30 countries
CONSUMER PANEL
SEGMENT - Measures who buys, where they buy and why
CLIENT - Primarily consumer goods manufacturers, computer, toy, and video
industries
SCOPE - 140,000 households in 20 countries
2000E REVENUE BY PRODUCT/SERVICE:
<TABLE>
<S> <C> <C> <C>
1,081 286 111 111
68% 18.0% 7.0% 7.0%
</TABLE>
2000E
TOTAL
1,589
[VNU LOGO] [ACNIELSEN LOGO]
13
<PAGE> 15
LEADERSHIP IN RETAIL MEASUREMENT
- ACNielsen is the clear leader in worldwide retail measurement
- Providing detailed "must-have" information on sales volume, market share,
competitor actions, distribution, pricing and merchandising and promotional
activities
- Select clients include
[Names and Logos of Unilever, Nestle, Procter & Gamble, Pepsi,
Colgate-Palmolive Company, Philip Morris Companies, Inc., Gillette, Diageo,
Johnson & Johnson, Coca-Cola Enterprises Inc., CPC International,
SmithKline Beecham]
[VNU LOGO] [ACNIELSEN LOGO]
14
<PAGE> 16
ACNielsen eRatings.com
Launching Global Internet Measurement
[Arrow Nielsen//NetRatings [Arrow
eRatings.com pointing www.nielsen-netratings.com pointing //NetRatings
to right] to left]
<TABLE>
<CAPTION>
OWNERSHIP
--------------------------------
<S> <C>
ACNIELSEN 80%
NETRATINGS 20%
</TABLE>
INTERNATIONAL
<TABLE>
<CAPTION>
OWNERSHIP
--------------------------------
<S> <C>
VNU (NMR) 54%
ACNIELSEN 6%
NETRATINGS MGMT 15%
OTHERS 25%
INTERNATIONAL
</TABLE>
U.S. AND CANADA
[VNU LOGO] [ACNIELSEN LOGO]
15
<PAGE> 17
COMBINED MARKETING INFORMATION BUSINESSES
Media
* ACNielsen Media International
* eRatings
+ Nielsen Media Research
+ Monitor Plus
+ SRDS
+ Scarborough Research
+ NetRatings
+ IMS / MRP
Entertainment
* ACNielsen EDI
* ACNielsen ReelResearch
+ National Research Group
+ SoundScan, VideoScan, BookScan
+ Broadcast Data Systems
+ Entertainment Marketing Information Solutions
Consumer Products
* ACNielsen Retail Measurement
* ACNielsen Consumer Panel
* ACNielsen Customized Research
* ACNielsen BASES
+ Claritas
+ Spectra Marketing Systems
+ Trade Dimensions
+ ORG-MARG
* Current ACNielsen business
+ Current VNU business
[VNU LOGO] [ACNIELSEN LOGO]
16
<PAGE> 18
SYNERGY OPPORTUNITIES
- Revenue Opportunities
- Cross selling products and services
- Leveraging strong worldwide relationships
- New product opportunities
- Cost Synergies
- Duplicative corporate expense
- Leverage of worldwide overlap
[VNU LOGO] [ACNIELSEN LOGO]
17
<PAGE> 19
EBITDA CONTRIBUTION BY GEOGRAPHY
<TABLE>
2000 VNU STANDALONE
<S> <C>
USA/CANADA 47%
THE NETHERLANDS 26%
REST OF EUROPE 25%
REST OF WORLD 2%
</TABLE>
<TABLE>
2000 PRO FORMA FOR ACNIELSEN
AND POSSIBLE DIVESTITURES
<S> <C>
USA/CANADA 56%
THE NETHERLANDS 11%
REST OF EUROPE 23%
REST OF WORLD 10%
</TABLE>
(a) Includes Miller Freeman (U.S.) on a full year basis.
[VNU LOGO] [ACNIELSEN LOGO]
18
<PAGE> 20
EBITDA CONTRIBUTION BY BUSINESS
<TABLE>
2000 VNU STANDALONE
<S> <C>
MARKETING & MEDIA INFORMATION 29%
DIRECTORIES 26%
BUSINESS MEDIA(a) 26%
CONSUMER INFORMATION 17%
EDUCATIONAL INFORMATION 2%
</TABLE>
ADVERTISING REVENUES ARE 38% OF TOTAL REVENUES
<TABLE>
2000 PRO FORMA FOR ACNIELSEN AND POSSIBLE DIVESTITURES
<S> <C>
MARKETING & MEDIA INFORMATION 52%
DIRECTORIES 24%
BUSINESS MEDIA(a) 24%
</TABLE>
ADVERTISING REVENUES ARE 26% OF TOTAL REVENUES
(a) Includes Miller Freeman (U.S.) on a full year basis.
[VNU LOGO] [ACNIELSEN LOGO]
19
<PAGE> 21
TRANSACTION SUMMARY
(Amounts in Millions, Except Per Share Data)
<TABLE>
<CAPTION>
USD EUR
--- ---
<S> <C> <C>
Offer Price 36.75 41.35
Times: ACNielsen Shares & Options Outstanding 71.3 71.3
----- -----
Gross Offer Value 2,618 2,946
Less: Cash Proceeds from Options (277) (312)
===== =====
Net Offer Value 2,341 2,634
Less: Net Cash Outstanding (2) (2)
----- -----
Total Transaction Value 2,339 2,632
===== =====
</TABLE>
[VNU LOGO] 20 [ACNIELSEN LOGO]
<PAGE> 22
ATTRACTIVE ACQUISITION MULTIPLE
- Transaction equates to 9.6x 2000E EBITDA (excluding OLE and eRatings)
- Highly attractive multiple in relation to comparable transactions
<TABLE>
<CAPTION>
MULTIPLE OF
TRANSACTION CURRENT
VALUE YEAR
ANNOUNCED ACQUIROR TARGET (USD IN MILLIONS) EBITDA
--------- -------- ------ ----------------- ------
<S> <C> <C> <C> <C>
OCTOBER 2000 REED ELSEVIER HARCOURT 5,850 12.6x
AUGUST 2000 BOEING JEPPESEN SANDERSON 1,500 17.6x
JULY 2000 VNU MILLER FREEMAN (US) 650 11.8x
JULY 2000 PEARSON NATIONAL COMPUTER SYSTEMS 2,500 19.2x
AUGUST 1999 VNU NIELSEN MEDIA RESEARCH 2,745 14.8x
MAY 1999 AEGIS MARKET FACTS 297 17.6x
</TABLE>
[VNU LOGO] 21 [ACNIELSEN LOGO]
<PAGE> 23
FINANCING PLAN
- Fully-committed bridge facility in place from Merrill Lynch
- Intention to explore the sale of the Consumer and Educational
Information Groups
- An equity issue in the order of EUR 500 million will be considered
- Pro forma EBITA to Interest Expense to remain within goal of 4x - 6x
[VNU LOGO] 22 [ACNIELSEN LOGO]
<PAGE> 24
ROADMAP TO COMPLETION
- Tender filing
- Antitrust clearances
- Close tender
- Anticipate closing transaction in first quarter, 2001
[VNU LOGO] 23 [ACNIELSEN LOGO]
<PAGE> 25
CONCLUSION
- Marquee brand name business providing "must-have" information
- Expand marketing and media information operations
- Complementary businesses present significant opportunities
across VNU and ACNielsen
- Strong double-digit EBITDA growth
- Existing management team with impressive experience
- Attractive purchase price and multiple
- Accretive to cash EPS and long-term cash EPS growth rate
- Conservative capital structure
[VNU LOGO] 24 [ACNIELSEN LOGO]
<PAGE> 26
FORWARD LOOKING STATEMENTS
The foregoing communications contain forward-looking statements within the
meaning of the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995 (the "Safe Harbor Provisions"). References made in the
foregoing, in particular, statements made regarding the proposed business
combination between VNU and ACNielsen are based on management's current
expectations or beliefs and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those described in the
forward-looking statements. In particular, the following factors, among others,
could cause actual results to differ materially from those described in the
forward-looking statements: inability to obtain, or meet conditions imposed
for, governmental approvals; costs related to the business combination; the risk
that the VNU and ACNielsen businesses will not be integrated successfully; and
other economic, business, competitive or regulatory factors relating to VNU's
and ACNielsen's business generally. VNU and ACNielsen are under no obligation to
(and expressly disclaim any such obligation to) update or alter their
forward-looking statements whether as a result of new information, future
events or otherwise. The Safe Harbor Provisions are not applicable to the
foregoing communications to the extent that they constitute tender offer
materials and have not been judicially determined to be applicable to such
communications to the extent that they constitute soliciting materials.
[VNU LOGO] 25 [ACNIELSEN LOGO]
