CEO Speech With Slides

GRIFFIN UNIVERSITY: COM12 BUSINESS COMMUNICATIONS
ASSESSMENT ITEM TWO

ANNOUNCING THE TAKEOVER OF BLUE TORCH ENTERTAINMENT BY LJR MEDIA INC.
Lachlan Ross: USER ID-S2790712; OUA ID - 336194
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ASSESSMENT ITEM TWO

ANNOUNCING THE TAKEOVER OF BLUE TORCH ENTERTAINMENT BY LJR MEDIA INC. Lachlan Ross: USER ID-S2790712; OUA ID - 336194
DISCLAIMER Lachlan James Ross (LJR) Media Inc. is a fictional worldwide entertainment and content provider. With over 6000 employees and offices located throughout the world, LJR have become the worlds leading and most trusted source of media and entertainment content. All names, facts and figures that are mentioned in this presentation are entirely fictional and created solely for the purpose of this assessment. -Lachlan Ross
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ASSESSMENT ITEM TWO

LJR MEDIA INC.

67 SAFFRON ST, GEELONG, VICTORIA 3220
News Release FOR IMMEDIATE RELEASE February 4, 2011
Contact Information
Michael Harris, Communications Director Office:Ph. (03) 52788214 Email: micheal.harris@ljrmedia.com
LJR MEDIA INC. CEO TO MAKE SPECIAL PRESENTATION AND MAJOR ANNOUNCEMENT REGARDING THE FUTURE OPERATIONS OF LJR MEDIA INC.
LJR Media Inc. is one of the worlds largest and faster growing companies, specialising in providing the highest quality content of entertainment from movies, television, print and radio. This news release is to invite any interested media to attend LJR CEO, Lachlan James Ross in announcing LJRs new acquisition of Blue Torch Entertainment. The press conference is to be held at 12 noon on February 7 at LJR Media Inc. Main Office press room, 67 Saffron St in Newtown, Geelong. CEO Lachlan Ross had this to say in the build up to the official announcement, These are exciting times for all investors involved in LJR and with this announcement our customers are going to be opened up to a whole new range of services that we can now offer now offer them. This announcement will delight all of our valued investors and strengthen our positioning within the entertainment industry. The presentation will also include a free lunch and drinks as a way to thank all the media for their continued support over the last 12 months and as a celebration of what the future holds. For more information, please contact Michael Harris at (03)52788214 or email michealharris@ljrmedia.com.
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ASSESSMENT ITEM TWO

PRESENTATION BY CEO LACHLAN JAMES ROSS ANNOUNCING THE TAKE OVER AND ACQUSITION OF BLUE TORCH ENTERTAINMENT
Thank You and good afternoon everyone.
I hope you are all enjoying the free lunch that was provided today.
My name, in case you dont know is Lachlan Ross.
Im the CEO and founder of LJR Media Inc.
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ASSESSMENT ITEM TWO

WORLDS LEADING ENTERTAINMENT AND CONTENT PROVIDER. FOUNDED IN 1984. EMPLOYEES OVER 6000 STAFF. OFFICES LOCATED IN 10 COUNTRIES. PUBLICLY LISTED IN 1990 CEO IS FOUNDER LACHLAN J ROSS
Its great to be here this afternoon I havent had the opportunity to address a room full of reporters since, well Friday. I was having withdrawals.
Ok, so is everyone seated?
Lets begin then shall we.
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In 2010 we entered the year facing strong economic headwinds and great uncertainty about the health of our markets.
We were at a crossroads.
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ASSESSMENT ITEM TWO

SIMPLIFY MANAGEMENT STRUCTURE CLARIFY INDIVIDUAL ROLES GOAL TO STREGHTEN OPERATIONS

ADJUST TO THE NEW WORLD OF DIGITALISATION INCREASE REVENUE AND ASSESTS
I and everyone who is part of the LJR Media Inc. Team focused our efforts over the duration of the past 12 months with a goal to strengthen our operations.
As a result we have emerged with our business improving more than the markets themselves.
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The executive board had been talking about how to best simplify our management structure and speed up decision making for a long time.
By clarifying our individual roles, we created clearer responsibility and accountability from the very top of the company.
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Our impressive results were widely distributed across most of our business segments and from varied sources around the world.
REVIEW OF SEGMENT OPERATING RESULTS Total Segment Operating Income December 31, December 31, 2010 US $ Millions Cable Network Programming Filmed Entertainment Television Direct Broadcast Satellite Television Publishing Other Total Segment Operating Income $ 735 189 151 (12) 380 (156) $ 1,287 $ 604 324 29 (30) (90)* (125) $ 712 * $ 1,394 469 256 70 558 (312) $ 2,435 $ 1,117 715 67 98 28* (251) $ 1,774 2009 2010 2009 3 Months Ended 6 Months Ended
They are testament to the clear vision our senior management has maintained in the face of broad economic challenges, as well as to the dedication of our more than 6000 innovative colleagues.
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ASSESSMENT ITEM TWO

The past 12 months results also underscore how well positioned we are: Fiscally Operationally and Strategically for further growth across all markets.
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Ok now,
It is with great pleasure as I stand before you today on behalf of everyone at LJR Media Inc. to announce the companys acquisition of Blue Torch Entertainment.
I will be more than happy to answer any questions that you may have once I have concluded this presentation.
Before that though, Id like to talk about the process and reasons behind the acquisition.
Why LJR Media Inc. thought it was a smart decision, and finally...
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ASSESSMENT ITEM TWO

How do we think this announcement will benefit the future of LJR Media Inc
MEDIA AND ENTERTAINMENT INDUSRTY IS IN THE MIDST OF TRANSFORMATION.
INTERNET HAS CHANGED CUSTOMER REQUIRMENTS
NEW PLATFORMS AND NEW WAYS TO COMMUNICATE & SHARE CONTENT HAVE BEEN CREATED
We all know that the media and entertainment industry is in the midst of transformation.
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We are entering a period of digitalisation which defies all limits and crosses all borders, in which everything works with everything else, everywhere, all the time.
The internet is driving a fundamental change in customer requirements.
We have come to realize that great content and service is no longer going to be enough.
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Customers are looking for new solutions to new challenges presented by a transformed technological world.
It's a world where solutions matter most.
Where size makes a difference.
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ASSESSMENT ITEM TWO

Where success will depend upon our ability to align ourselves to function.
In a seamless way to answer our customers' every technology need from all forms of media driven content.
Each day new platforms and new ways of communicating and sharing content challenge us to evolve our business.
These disruptions though have provided us with long term opportunities.
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Across the company, we have been using rapid advancements in technology to our advantage.
Its the consistency of LJRs core strategy, and clarity to our operations that resonate with me as I stand before you making this special announcement today.
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FURTHER ENHANCE CAPABILITIES AND GROWTH TRAJECTORY

GOAL TO BUILD THE NEXT GENERATION PLATFORM FOR SERVING MEDIA WORLDWIDE ADVANCE MARKET POSITION REDUCE COSTS OF SUSTAINABILITY EXTENDS SERVICES AND TECHNOLOGIES AT LJR
In the final half of 2010 we made an attractive all cash offer of 700pence per share to acquire the 61% of Blue Torch Entertainment that LJR Media Inc. didnt already own.
LJR payed Blue Torch Entertainment a breakup fee of approximately $60 million after we obtained regulatory approvals.
The transaction was financed by using a significant portion of the available cash on our balance sheet plus borrowed funds.
The number of LJR shares issued in the transaction was determined based on the 30 day average closing price two trading days prior to the completion of the acquisition.
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APPROVAL OF TRANSACTION COMPLETE CLOSE OF TRANSACTION EXPECTED 1ST QAUTER OF 2011 TRANFORMATION INTO THE DIGITAL ERA
IS A CORE BUSINESS OF LJR MEDIA INC WILL IMPROVE CUSTOMER EXPERIENCE OF OUR SERVICES
Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the first quarter of 2011.
I believe this transaction will result in increased geographic diversification of the companys earnings base and reduce its exposure to cyclical advertising revenues through an increase in direct consumer.
It affirms a successful transformation into the digital era of 2011 and positions LJR for the future and greatly benefits our investors.
Its also a core business in which we have an extensive expertise.
Our companies share similar values.
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We both always put our customers first and are committed to innovating to improve their experience when using our services.
Blue Torch Entertainment has been an emerging online media platform that services to provide high quality content and interaction with its online users.
Blue Torch Entertainment has been a well run business with talented people who have bought many innovations to customers throughout Australia and the greater Asian region since it was founded in 1989.
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When deciding to acquire Blue Torch Entertainment, we saw an opportunity to partner with a great management team to further enhance the companys capabilities and growth trajectory.
Im confident that with this takeover well have the flexibility and resources needed to pursue our goal of building the next generation platform for serving media worldwide.
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It is a rare opportunity when an entertainment company can advance its market position substantially and reduce its cost structure substantially at the same time.
This is possible because Blue Torch Entertainment and LJR Media Inc. are in the same businesses, pursuing the same strategies, in the same markets, with complementary capabilities.
With LJRs global reach, scale and widely recognised leadership, we are confident that our existing customers will continue to be fully supported while we continue to enhance and extend our services and technology at LJR.
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I firmly believe our era is one of innovation.
That is, a digital renaissance that is bringing us closer to a global meritocracy than at any time in human history.
Innovation only accelerates as human freedom advances and human beings have more chances to interact.
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ERA OF INNOVATION IS ASYMMETRIC INNOVATION ACCELERATES AS HUMAN FREEDOM ADVANCES MORE INTERACTION WITH CUSTOMERS THE INTERNET CHANGES EVERYTHING AND EFFECTS BUSSINESS.
The era of innovation is asymmetric:
The winners will be rewarded handsomely and the laggards will be left languishing far behind.
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REAL TIME IS NOT FAST ENOUGH Everyone understands that we live in a world of technological change.
Companies that do not innovate will struggle to survive.
They will be digitally disorientated.
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Quickly losing touch with their customers, and who will be more technologically literate than those who seek to provide them with services and products.
It's true: the Internet changes everything.
Think of all the things you can do from your home, your car, your office, the airport that you could never do before. Things like: Instant communication over networks Content moving over networks Whole processes being transformed by networks and networks supported by open architectures
All of which are driving a digitalised technological transformation that is much more radical and much more rapid than ever before.
The dot-com bubble may have burst, but the effect of the Internet on business and daily life is immutable.
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Our strong performances over the last 12 months have been driven by a rapidly growing digital economy.
Continuous product innovation that benefits a wider range of customers and by the extraordinary momentum of our newer business frameworks since being implemented.
These results give us the optimism and confidence to invest heavily in future growth.
Investments that will benefit our customers, the team at LJR and the wider community.
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MOST HAVE BEEN TAKEOVERS OF DIVERSIFICATION....NOT CONSOLIDATION
SOLD AT HIGH PRICES IN HOT MARKETS = HIGH REVENUE
SYNERGIES TO COVER BET.
NO DETAILED PRE & POST CLOSE INTEGRATION PROGRAMS
Many entertainment and media takeovers have failed.
Most have been takeovers of diversification, not consolidation.
Many have been market laggards coming together.
Most have been done in hot markets at hot prices - requiring lots of revenue synergies to cover the bet.
Many had no detailed pre- or post-close integration programs.
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CREATES MARKET LEADERSHIP UPSIDE POTENTIAL OF COST SYNERGIES & REVENUE MUST HAVE A GOAL OF BRINGING THE TWO COMPANIES TOGETHER AS A FAMILY MEETS CRITERIA FOR SMOOTH AND EFFECTIVE INTEGRATION TIMING
This is a takeover of like businesses coming together - a takeovers of consolidation, not diversification.
LJR and Blue Torch Entertainment are in the same businesses, we understand each other, and we speak the same language.
This is a takeover that creates market leadership.
This is a takeover that we expect to be substantially accretive even with revenue losses baked in.
This is a takeover with lots of upside potential in both cost synergies and revenue.
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This industry is beginning to consolidate.
Current industry dynamics are much more akin to the mature phases of other industries - where takeovers are not only workable, but a strategic imperative. Industries like: Pharmaceuticals Oil and Gas Financial Services Telecom and Aerospace
In fact, there are some common threads that run through successful mergers.
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Takeovers have succeeded:
When the combination is about bringing like businesses together, not making forays into new businesses
When the combination helps to achieve clear market leadership When the deal is stock only, providing a strong post-merger balance sheet
When the combination results in significant cost savings, and When the combination meets the criteria for smooth and effective integration
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The timing of this deal is also important.
We're doing this takeover at the near bottom of a market cycle, not the top, which means: Valuations are fair Customers aren't making major investments Our competitors are in a holding pattern or dealing with business-model challenges of their own as they adjust to lower overall industry growth rates.
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And perhaps most importantly, our employee base is stable. Attrition at LJR and Blue Torch are at all-time lows.
INCLUSION OF DEFINING GOVERNACE FOR NEW COMPANY FOCUS TO REMAIN ALWAYS ON CUSTOMERS DEVELOPMENT OF CLEAR PRODUCT ROADMAPS TO CAPTURE COST SAVINGS IDENTIFIED HAVE CONSTANT COMMUNICATION WITH EMPLOYEES & STAKEHOLDERS
We are addressing the critical factors for successful takeover execution: Including defining governance for the new company Ensuring an unyielding focus on customers throughout the pre- and post-close integration process Developing clear product roadmaps
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Preparing ourselves for Day One across every level of the company developing rigorous plans for capturing the cost-savings we have identified Staying in constant communication with employees and stakeholders
Interestingly, the adversity we've faced has brought the two organizations even closer together and created an even more unified and committed team.
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Proof that a kite rises against the wind, not with it.
We have now entered the third and final phase of our integration planning.
We are at the point where detailed business plans are being drawn up for the new company.
We are over-achieving on both our cost reduction and revenue targets.
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We have completed all our product line road maps.
We've built our go-to-market plans.
Our web sites will be integrated on day one.
Our customer service reps will know what to say when they pick up the phone. All our employees will get a pay check that says LJR.
These are just some examples of the nitty-gritty work that must be done, and is being done to assure we hit the ground running and can meet or exceed the expectations of our employees, our customers and our shareowners.
All the hard work of reinvention over the past year has been preparation for this.
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SECURING THE FUTURE FOR LJR MEDIA INC. CAREFUL PLANNING FOR PAST 12 MONTHS
WE ASKED OURSELVES THE HARD QUESTIONS.

AQCUISITION CREATES SHAREHOLDER VALUE.
This takeover isn't just my judgment of how best to secure this company's future.
This represents the collective judgment of a talented team of people who have spent the last year preparing for this transaction. These are people who attended the meetings where we asked the hard questions:
Will taking over Blue Torch Entertainment create shareowner value?
And can we get it done?
These same people have looked at the alternatives.

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They unanimously came to an answer: Acquire Blue Torch Entertainment.
LEAD FROM THE FONT NOT FOLLOW FROM BEHIND
COMMUNICATION IS KEY TO SUCCESS BOUNDLESS OPPURTUNITIES TO INCREASE MARKET SHARE OUR LEGACY IS WORTH PRESERVING.
Im confident that we have turned the corner on this acquisition.
The momentum is shifting.
The more that people look at this deal, the more they conclude that this is not simply a choice between acquiring and not acquiring.
This is a choice between taking the hill and charging ahead or retreating and starting over.
This is a choice between embracing the revolution that is changing our industry or attempting in vain to preserve the status quo.
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This is a choice between leading and following.
We work hard and will continue to do so when communicating our values as a company.
I remain excited about the future and see boundless opportunities to play to our inherent strength as the worlds leading entertainment and content provider.
Ours is a legacy of invention and values that are worth preserving.
Sustaining our company requires moving forward with courage and determination.
And that is exactly what we intend to do.
-Thank You
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WWW.LJRMEDIAINC.COM INFO@LJRMEDIAINC.COM
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Bibliography
Brian Atkin, Adrian Brooks. Total Facilities Management. Oxford: Blackwell Publishing Ltd, 2000. Hartley, John. Communication, Cultural & Media Studies. New York: Routledge, 2002. Steve Barrile, Terry Cameron. Business Managemen: Corporate, Human Resource & Operrations Management 5th Edition. South Yarra: VCTA Publishing, 2002.
IMAGES http://commons.wikimedia.org/wiki/File:Working_Together_Teamwork_Puzzle_Concept.jpg http://www.google.com.au/images?um=1&hl=en&biw=1366&bih=667&tbs=isch:1&sa=1&q=kite+ris es+against+the+wind&aq=f&aqi=&aql=&oq= http://www.google.com.au/images?um=1&hl=en&biw=1366&bih=667&tbs=isch:1&aq=f&aqi=g10 http://www.smh.com.au/news/business/the-big-takeovers-of2005/2005/12/23/1135032184310.html www.coreideas.com.au/wp-content/innovation.jpg&imgrefurl http://www.spillerconsulting.com/&usg=__s_4M8OpyGgCNhmRqjHEXFvI www.deloitte.com/view/en_US/us/Industries/technology/1752cd53e2432210VgnVCM100000ba42f http://www.portsmouthwater.co.uk/customer_services/default.aspx%3Fid%3D1826&usg=__2ma4s yipeQGhttp://sandiegoweddingcoop.wordpress.com/&usg=__xq3KccNuxHhO6hhmsdhttp://www.inetgiant.com.au/tags/opportunities&usg=__c0zEHnvaTOMHd31r4G2cPGnS4 http://www.cmswire.com/cms/enterprise-cms/open-text-goes-for-sizzling-experiences-with-vizibleacquisitionhttp://megasilver.files.wordpress.com/2009/09/dgzakus5b65d.jpg&imgrefurl http://farm3.static.flickr.com/2088/2359896942_b3fc145e9a.jpg%3Fv%3D0&imgrefur www.trivandrumbuzz.com/wp-content/uploads/2009/10/egov_overview.jpg&imgrefurl www.arttherapyblog.com/uimages/2008/10/transformation-and-change.png&imgrefurl www.shawncasey.com/wp-content/uploads/2009/09/why.jpg&imgrefurl
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GRIFFIN UNIVERSITY: COM12 BUSINESS COMMUNICATIONS

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

LJR MEDIA INC.

News Release FOR IMMEDIATE RELEASE February 4, 2011

Michael Harris, Communications Director Office:Ph. (03) 52788214 Email: micheal.harris@ljrmedia.com

ASSESSMENT ITEM TWO

Thank You and good afternoon everyone.

My name, in case you dont know is Lachlan Ross.

Im the CEO and founder of LJR Media Inc.

ASSESSMENT ITEM TWO

Ok, so is everyone seated?

Lets begin then shall we.

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

SIMPLIFY MANAGEMENT STRUCTURE CLARIFY INDIVIDUAL ROLES GOAL TO STREGHTEN OPERATIONS

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

MEDIA AND ENTERTAINMENT INDUSRTY IS IN THE MIDST OF TRANSFORMATION.

INTERNET HAS CHANGED CUSTOMER REQUIRMENTS

ASSESSMENT ITEM TWO

The internet is driving a fundamental change in customer requirements.

ASSESSMENT ITEM TWO

It's a world where solutions matter most.

Where size makes a difference.

ASSESSMENT ITEM TWO

These disruptions though have provided us with long term opportunities.

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

FURTHER ENHANCE CAPABILITIES AND GROWTH TRAJECTORY

ASSESSMENT ITEM TWO

Its also a core business in which we have an extensive expertise.

Our companies share similar values.

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

I firmly believe our era is one of innovation.

ASSESSMENT ITEM TWO

The era of innovation is asymmetric:

ASSESSMENT ITEM TWO

Companies that do not innovate will struggle to survive.

They will be digitally disorientated.

ASSESSMENT ITEM TWO

It's true: the Internet changes everything.

ASSESSMENT ITEM TWO

ASSESSMENT ITEM TWO

MOST HAVE BEEN TAKEOVERS OF DIVERSIFICATION....NOT CONSOLIDATION

SOLD AT HIGH PRICES IN HOT MARKETS = HIGH REVENUE

SYNERGIES TO COVER BET.

NO DETAILED PRE & POST CLOSE INTEGRATION PROGRAMS

Many entertainment and media takeovers have failed.

Most have been takeovers of diversification, not consolidation.

Many have been market laggards coming together.

Many had no detailed pre- or post-close integration programs.

ASSESSMENT ITEM TWO

This is a takeover that creates market leadership.

ASSESSMENT ITEM TWO

This industry is beginning to consolidate.

ASSESSMENT ITEM TWO