1. Underwriting Performance Indicators Presented by:Jim Taszarek Kirk Nelson

2. What We will Cover Break down net underwriting revenue per listener hour (NURPLH) Give you a tool for annual planning Key performance indicators to manage during the year

3. Hedgehog Concept What can we be best in the world at What you are deeply passionate about What drives your economic engine

4. How to Use NURPLH Compare to industry –Highest –Median Compare to self Note: highly rated stations

5. Breaking Down The Formula Listener hours Total revenue –Number of reps –Performance of individual reps –Inventory management Cost to generate revenue (expenses)

6. Planning Spreadsheet Calculate prior year NURPLH Compare to industry benchmarks –Median –High Run scenarios for upcoming year –Hold listener hours constant

7. What Drives Underwriting Ratings – not within our control People Inventory Create performance systems around these levers and monitor performance

8. Monitor What Drives Performance

9. People Systems Staff assessment Ongoing recruitment process Selection process - hire right people Set goals and monitor performance

10. Staff Assessment Process Staff Assessment (annually, quarterly) Right people to achieve next year’s goal Evaluate each person’s situation Have hard conversations about non- performers If you have high turnover find out why Talk through options if someone leaves Include “bench strength” Brutally honest so no surprises

11. People Annual growth benchmarks: –Year 1: Average of new hires –Year 2: 50 – 100% –Year 3: 20 – 30% –Year 4: 15 – 20% Monthly performance evaluation against: –Goal, LY

12. Historical Billing Annually –Billing not collections –Planning Tool –Growth trends/Projections –Seasonal factors Monthly –Compare pacing to historical growth trends

13. 3-Month Billing Projections Monthly –Pacing benchmarks: –6 weeks prior to start of month: 70 – 75% –2 weeks prior to start of month: 85 – 89% –Start of month: 90 – 95% –2 weeks into month – 99 – 101%

14. ?? Questions ?? Presented by:Jim Taszarek Kirk Nelson

15. Station A Station B

16. Station A Station B

17. Station A