Harinder Samra Andrew Springer Douglas Haggard

Bloomberg's Core Values

Analysis Recommendation Implementation Financials Conclusion

Socially Responsible

Investing:1. Social

2. Environmental3. Ethical Mission

Statement1:

To deliver the best information

possible

Environmental Social

Governance:Measurement of

Corporate Responsibility

Vision Statement:

Progress with Sustainability

Competitive Advantage

• Leader in analytic research• All in one computerized

terminals• Globally used software• Multiplatform media delivery• Fortune 100 best company to

work for2

• Top 50 green company2

Analysis Recommendation Implementation Financials Conclusion

Current Weaknesses

• ESG related terminal sales low• ESG Research is labor Intensive• Gaps in “non-financial” data

?

Analysis Recommendation Implementation Financials Conclusion

Continuing Opportunities

• Deriving data• Creating analytical tools to measure ESG metrics• SRI screened funds increasing• SRI index returned 9.5% yearly versus S & P 500 8.6%

3

• Potential growth in carbon credit trading

Analysis Recommendation Implementation Financials Conclusion

Biggest Threats

• Competitors offering ESG data to SRI fund managers• No international standards on collecting data• Competitors gaining ground is rapidly expanding SRI

market

Analysis Recommendation Implementation Financials Conclusion

Decision

Outsource In House

Specific data collection

Fits Core Values

Control of the data quality

Less labor intensive

Analysis Recommendation Implementation Financials Conclusion

Recommendations

Derive ESG DataDevelop

Industry Specific Benchmarks

Promote New ESG Tools

IssuesAssumptions based on incomplete data

RisksCompromised integrity

IssuesDeveloping a fair and unbiased system

RisksNegative impact of imprecise ratings

IssuesUnknown benefits of new tools

RisksLack of adoption

Analysis Recommendation Implementation Financials Conclusion

Recommendations

Derive ESG DataDevelop

Industry Specific Benchmarks

Promote New ESG Tools

IssuesAssumptions based on incomplete data

RisksCompromised integrity

IssuesDeveloping a fair and unbiased system

RisksNegative impact of imprecise ratings

IssuesUnknown benefits of new tools

RisksLack of adoption

Analysis Recommendation Implementation Financials Conclusion

Recommendations

Derive ESG DataDevelop

Industry Specific Benchmarks

Promote New ESG Tools

IssuesAssumptions based on incomplete data

RisksCompromised integrity

IssuesDeveloping a fair and unbiased system

RisksNegative impact of imprecise ratings

IssuesUnknown benefits of new tools

RisksLack of adoption

Analysis Recommendation Implementation Financials Conclusion

Recommendation Effects

Provides the best information available to evaluate SRI metrics

Positions Bloomberg to capture emerging market share

Position Bloomberg as a leader in information on Carbon Trading

Analysis Recommendation Implementation Financials Conclusion

Implementation

Hire employees to derive ESG data

Make rating system relative to industry

Roll out marketing and promotion plan to push ESG analytical tools

Analysis Recommendation Implementation Financials Conclusion

Timeline of Implementation

March 2011 June September December 2012 2013

“Data Scraping” and Quantitative Analysis of Data

Recruitment and Hiring of New

Employees

Develop Industry Specific Rating

System

Rollout of new ESG Products

Evaluation of Implementation

1 2Short Term Long Term

Promotion of New ESG Analytical Tools

Analysis Recommendation Implementation Financials Conclusion

Assumptions

US and EU SRI assets under management $9.941 trillion

4,5

Traders to asset ratio 1 trader/$750m assets

SRI portfolios increasing 3.6% yearly

4Cost of Living Increase 3%

Euro to Dollar exchange rate $1.3753

6

Inflation rate 2%7

Analysis Recommendation Implementation Financials Conclusion

Cost of Deriving Data

1. Hiring EmployeesAverage Salary for research analysts in New York City with 1-4yr experience including,

Health Benefits & Compensation

Trucost employees 11 analysts8

Bloomberg at the start of the roll out in 2008 had 5 analysts

According to our calculations:

117k X 6 New analysts9

250k X 1 Ph.D. statistician9 952k a year

2. Marketing Plan$ 5 million per year for employee training and sales material

Analysis Recommendation Implementation Financials Conclusion

Projected Profit for US and EU

$ (000) Year 0 (2011)

Year 1(2012)

Year 2 (2013)

Year 3 (2014)

Year 4 (2015)

Year 5(2016)

New Cost 5,952 6,010 6,191 6,376 6,568 6,765

Projected Growth 119 12,843 13,306 13,785 14,280 14,795

Recurring Units Sold 119 1,296 13,161 24,454 38,188 51,382

Net Profit After Tax (3714) 5,284 13,180 21,360 29,836 38,618

Projected 5 year Profit $104,563,937

Analysis Recommendation Implementation Financials Conclusion

Cost Vs. Net Profit

2011 2012 2013 2014 2015 2016-10,000

0

10,000

20,000

30,000

40,000

50,000

CostNet Profit

$ (0

00's)

Analysis Recommendation Implementation Financials Conclusion

Projected Market Share

Present Market Share

BloombergGrowth Opportu-nity

Market Share 2016

BloombergGrowth Op-portunity

Results of recommendations

Analysis Recommendation Implementation Financials Conclusion

.56%

23.79%

By implementing our recommendations, Bloomberg will• Maintain its core values• Encourage Corporate Responsibility• Gain market share in SRI investment segment

Conclusion

Analysis Recommendation Implementation Financials Conclusion

THANK YOU

INDEX

Slide Slide

1 Intro 11 Recommendation Effects

2 Bloomberg’s Core Values 12 Assumptions

3 Competitive Advantage 13 Cost of Deriving Data

4 Current Weaknesses 14 Projected Profit for US and EU

5 Continuing Opportunities 15 Cost vs. Net Profit

6 Biggest Threats 16 Projected Market Share

7 Decision 17 Implementation

8 Recommendations Stage 1 18 Timeline of Implementation

9 Recommendations Stage 2 19 Conclusion

10 Recommendations Stage 3 20 End

References

1. http://georgedearing.com/bloombergs-mission-statement-via-slmader2. http://www.hoovers.com/bloomberg-l.p./--ID__40671--/freeuk-co-

factsheet.xhtml3. http://www.fool.com/investing/general/2010/06/02/reinforce-your-returns-

with-social-responsibility.aspx?source=isesitlnk0000001&mrr=1.004. http://www.socialinvest.org/resources/sriguide/srifacts.cfm5. http://www.eurosif.org/sri-resources/sri-faq 6. http://www.x-rates.com/7. http://www.usinflationcalculator.com/interest-rates/long-term-inflation-target-

of-17-to-2-set-by-fed/1000388/8. http://www.trucost.com/our-team9. http://www.salary.com/salary/index.asp

Appendix

Companies with stand alone and integrated responsibility reports, by country 2005-2008