IEEE IP Business Overview

Jonathan DahlIEEE Global Sales & Customer OperationsJune 23, 2011

2011 IP business summary…On target to deliver $180.4 million in IPsales ($200K over 2011 revenue budget)

IEEE Enterprise (small business product) & eBooks strongest contributors to dateIEL forecast + $9 million over 2010– But $1 million under 2011 budget

New int’l business = biggest issue– Middle East renewal problems also an issue…Saudi Arabia,

Egypt, Tunisia, Iran

NM print subs down > $1 MM vs. budget2011 results will come down to the wire in December

Key IEEE Product Sales Trends 2002-2011B in $ millions earned sales / 230% growth in 10 years

$180.4

$78.5

+10% +11% +10% +12% +13% +8% +8% +10%

Source: IEEE Sales & Marketing 2010

+4%

3

IEEE IP revenue 2008-2011F

2008 2009 2010 2011 B 2011 F

$146.1 million

$157.4 million

$172.7 million

$180.2 million

$180.4 million

+7.7% +9.7% +4.3% +4.5%

4

2011 sales budget by sales team

2010cash sales

2011cash sales

$56.9 million $59.8 million

$100.3 million $107.3 million

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STM industry sales growth2008-2011 projected

STM industry average

2008 6.8% 8.6%

2009 1.7% 7.6%

2010 2.5% 9.7%

2011F 4.8%projected

4.5%forecast

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Source: Outsell March 2011; IEEE Sales & Mktg 2011

Top 6 IEEE IP products(by $ 2011 forecast)

IP product $ 2011 % over 2010

IEL $140.5 million +7.1%

Non-Member print subs $12.6 million -15.1%

ASPP $9.5 million -8.8%

Enterprise $4.9 million +18.5%

Member Digital Library $2.3 million -10.2%

Standards Online $2.6 million +18.9%

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IEEE Enterprise continues strong performance

2008 2009 2010 2011 YTD thru May

New Customers

152 143 169 67

Active Customers

428 456 542 599

Total Orders

487 500 601 666

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NM Subscription units1

2009-2011 YTD

2009 units

2009%

2010 units

2010%

2011 YTD units

2010 YTD %

Print 17,138 94% 13,284 92% 9,857 88%

Online 210 1% 443 3% 617 6%

Combo2 872 5% 728 5% 726 6%

Total 18,220 100% 14,455 100% 11,200 100%

9

1 Includes all society journals & trans, plus IEEE Spectrum & P’ceeds of IEEE2 A large majority of Combo subs are for IEEE Spectrum

Opportunity?

Our 2011 sales challenge…

To achieve our sales commitments when……almost all the major universities in the world now

take IEL…most big multinational tech companies in the world

now take IEL…tough economic conditions

-- Europe

-- Middle East-- US state budgets

…renewal orders are becoming as difficult as new sales?

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Challenge to IEEE Xplore usageCorporate knowledge workers time spent on information is declining

11

6.3

5.1

4.8

11.410.7

Source: Outsell 2011

What do we have to do to achieve 2011 sales?

Renew big $ customersFind more corporate customers– IEEE Xplore for Corporate Work Groups– Journal bundles

Greater focus on ChinaProcess our leads more effectivelyInside Sales steps up– Increase sales responsibility– Coordinate with international sales team

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