Monster Worldwide, Inc.

Leveraged Buyout Acquisition Plan Proposal Submitted to

Mr. Patterson “Pat” Waldenheimat, Chairman and CEO of Msverde Capital Assets, LLP

by Mr. M. Scott Green, EVP and Director of

Global Investments4/18/2012

Table of Contents

I. LBO Trigger: CEO Iannuzzi & R. W. Baird Co. Conference

II. Executive Summary and Financial Request

III. Company Background

IV. Financial Review

V. Q & A

VI. References

LBO Trigger: Monster’s CEO Iannuzzi & the R. W. Baird & Co. Conference

Marketing Accounted for 21% of 2011 Revenue

A 25% Spike Registered in Intraday Trading following Comments

59% Decline in Stock Value since March 31, 2011

The Oracle Speaks: “…strategic alternatives…”

Executive Summary

• Conditions Prompting the LBO Proposal

• Business Growth Cycle Stage

• Financial Performance Record to Date

• Causes for Poor Performance: Internal and External Factors

• LBO Management Reorganization/Restructuring Bid

4/18/2012

Executive Summary Continued…: Company Background

• World’s #1 Online Employment Service Solutions Company

• 93 Million Passive and Active Job Seekers per Month

• 55 Countries around the World

• Three Major Business Segments

Monster Worldwide, Inc.

622 Third Avenue

39th Floor, 622 Third Avenue

NEW YORK, NY 10017

United States

Tel: 212-351-7000

Fax: 646-658-0540

Toll Free: 888-225-5867

www.about-monster.com

Employees: 6,000

Company Type: Public Parent

Corporate Family: 46 Companies

Traded: New York Stock

Exchange: MWW

Incorporation Date: 1996

Auditor: BDO USA, LLP

Financials in: USD (mil)

Fiscal Year End: 31-Dec-2011

Reporting Currency: US Dollar

Annual Sales: 1,040.1

Net Income: 53.8

Total Assets: 2,058.0

Market Value: 860.4

(17-Feb-2012)

4/18/2012

Executive Summary Continued…: Monster’s Worldwide Locations

Monster Forces on the Competitive Landscape

CareerBuilders.com

Dice.com USAJobs.com

LinkedIn.comThe

Ladders.comSnagaJob.com

Indeed.comSimply

Hired.comJob.com

Intense Competition

Patent and Innovation Wars

Technology and Internet Proliferation & Moore’s

Law Impact

Niche Industry

LBO Monster Deal Structure

Word 2007 Document

• Form of Acquisition:Friendly Taker

• Form of Payment: Capital Structure – Multiple Tranches

• Tax Considerations:Tax Shields

• Accounting Considerations and Requirements:

• Acquisition Vehicle: Limited Liability

Company (LLC)

• Post-Closing Organization:

• Legal Form of Selling Entity:

• Sources and Uses of Funds at Closing:

Financial Review: Key Monster Economic Drivers

Microsoft Office Excel 2007 Workbook

Germany

Korea, South

Canada

United Kingdom

France

Italy

Netherlands

Switzerland

Sweden

Finland

Belgium

Austria

Denmark

Total

0.0277752007843095

0.13018906247334

0.0384245933378979

0.0247228968374388

0.0271531258756734

0.0179843341813925

0.0396145586909989

0.0330595167827113

-0.000100748510787088

0.0701614371686115

0.0245829507969158

0.0607706328102665

0.047610013689858

Inventions

Designs

-2.50%

2.50%

7.50%

Global Patents and Inventions: 2000-2010

Pat

ents

/Inv

enti

ons

% A

vera

ge I

ncre

ase/

Dec

reas

e (Y

OY

)

Austria

Brazi

l

Czech

Rep

ublic

Ger

man

y

Hungary

Irela

nd

Korea,

South

Mal

aysi

a

Nether

lands

Poland

Singap

ore

Spain

Switz

erla

nd

United K

ingdom

8.48%10.61%

32.79%33.66%

22.71%

19.48%

11.00%10.09%

27.06%29.18%

14.76%

7.89%6.45%

15.49%

10.44%

20.11%

7.61%

18.24%

26.14%

33.56%

6.75%5.47%

18.82%

7.64%4.74%

29.08%

13.46%

6.29%

Worldwide Internet Usage: 2000-2009

Internet Usage Cumulative % Average Increase

Unemployment Rate % Yearly Cumulative Average Increase/Decrease (YOY)

-2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

United States; 9.87%

Canada; 2.04%

France; 1.15%

Germany; -0.32%

Italy; -1.17%

Netherlands; 5.16%

Sweden; 4.24%

United Kingdom; 3.87%

Global Unemployment Rate (Select): 2000-2010

Financial Review Continued: Assumptions & Statistical Analysis

• Market-Based Assumptions (Current)• %-Based Weighted Arithmetic Means

One-Year Libor Rate (March 2012): 1.0103%

 

Market Rate (Equity Risk Premium): 5.5%

 

FSP = firm size premium = 2.3 (percentage points added to CAPM

estimate)

Shares Outstanding (as of April 17, 2012) = 123,923,000

 

10-Year Treasury Note: 1.988%

 

Monster Risk Free Rate: 2.97% 

WACC = Since there is no debt or preferred stock, the WACC is the

Return on Stock, 16.6681

Market Value = $1,106,632,000 

Line of Credit (LOC): Prime Rate plus Libor Rate

Expected Rate of Return on Equity = 8.47%

 

Cost of Equity =16.6681 

Effective Tax Rate = 20%

Prime Rate: 3.25% 

Monster Beta: Range 2.16-2.97; Average 2.57

Stock Price (as of April 17, 2012) = $8.93

Termination Fee = 8.5% of Deal Value

Business Revenue Segmentation Regression Analysis: Null Hypothesis: Monster Worldw ide revenue is affected by [selected] global economic factors

Regression StatisticsMultiple R 0.80R Square 0.64Adjusted R Square 0.10Standard Error 102385.87Observations 11

ANOVA

df SS MS F Significance FRegression 6 75188006372 12531334395 1.20 0.45Residual 4 41931462351 10482865588Total 10 1.17119E+11

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 187945.772 77026.25135 2.44002231 0.07 -25913.39 401804.93 -25913.39 401804.93Unemployment Rate % Yearly Weighted Average Increase/Decrease (YOY)2610827.75 1260899.922 2.070606638 0.11 -889991.67 6111647.17 -889991.67 6111647.17CPI Delta % Average -1632.6281 28574.67459 -0.057135491 0.96 -80968.64 77703.39 -80968.64 77703.39Real GDP per Employee Person Average Increase/Decrease % (YOY)-3509900.7 10764750.06 -0.32605501 0.76 -33397638.31 26377836.92 -33397638.31 26377836.92Patents Total (YOY) 3538123.76 22226157.7 0.159187378 0.88 -58171582.99 65247830.51 -58171582.99 65247830.51Patents Inventions (YOY) -1135330 22299430 -0.050912959 0.96 -63048473.24 60777813.32 -63048473.24 60777813.32Patents Designs (YOY) -469805.11 1340318.171 -0.350517602 0.74 -4191124.94 3251514.72 -4191124.94 3251514.72

• Market- and Industry-Based Exclusivity• Conservative Rates, Where Permitted

(e.g., Termination Fee %)

Financial Review Continued…: A Monster of a Deal

Expected ROI at Exit Phase = 45%

2012 Total Purchase Price (USD Thousands) Plus Termination Fee Amount

Equity Value (including 25% premiun) = 1,383,290

Value of Operations (NPV of Projected FCF) = 234,000

Economic Value Added = 68,000

Total Purchase Price = 1,685,290

Total Purchase Price Adjusted = 1,700,000

Termination Fee @ 8.5% = 144,500

Increase in NOWC Efficiency (Management)

by 40 – 50%

Improve Long-Term (5-Yr.) AGR to 20% by Exit

Phase

59% Retained Institutional Stake at SIPO

4/18/2012

Monstering Up A Little Q & A

4/18/2012

Monster References

• Cravath, Swaine & Moore LLP (2012). Home: Information. Retrieved March 2, 2012, from http://www.cravath.com/• Credit Suisse Group AG (1997-2012). Home: Information. Retrieved March 2, 2012, from

https://www.credit-suisse.com/investment_banking/advisory_services/en/mergers_and_aquisitions.jsp• Culbert, K. (2011). Ibis World Industry Report. Retrieved February 14, 2012, from www.ibisworld.com• Datamonitor (2012). Monster Worldwide, Inc.: SWOT Analysis. Retrieved February 14, 2012, from

http://0-online.datmonitor.com.library.ggu.edu• Federal Trade Commission (2012). FTC Premerger Notification Program. Retrieved March 24, 2012, from

http://www.ftc.gov/bc/hsr/hsrform.shtm• Hermann, J. T. (2003). Pacific Coast Capital, Inc.: Writing a Business Plan for a Leveraged Buyout. Retrieved on April 02, 2012

from www.pacific-coast-capital.com• International Monetary Fund.com (2012). Economic Outlook. Retrieved February 14, 2012, from www.imf.com• Mergent.com (N/A). Mergent Online Search. Retrieved February 14, 2012, from http://0-online.mergent.com.library.ggu.edu• Monster Worldwide, Inc. (2012). About Us. Retrieved March 1, 2012, from www.about-monster.com• MorningStar, Inc. (2012). Investment Research Center. Retrieved on April 12, 2012 from

http://0-library.morningstar.com.library.ggu.edu/• Observations (2011). Average Stock Market Returns. Retrieved April 2, 2012, from

http://observationsandnotes.blogspot.com/2009/03/average-annual-stock-market-return.html• OneSource Information Services, Inc. (2012). Company Summary Report: Monster Worldwide, Inc. Retrieved February 14,

2012, from http://0-online.onesource.com.library.ggu.edu• Standard & Poor’s (2012). S&P Capital IQ: NetAdvantage. Retrieved April 12, 2012 from

http://0-www.netadvantage.standardandpoors.com.library.ggu.edu/NASApp/NetAdvantage/cp/companyIndustrySurvey.do?task=showPDFIndustrySurveyByTicker

• The Securities and Exchange Commission (2010). Filings & Forms. Retrieved March 14, 2012, from http://www.sec.gov/about/forms/secforms.htm#proxy

• U.S. Census Bureau (2011). Statistical Abstract. Retrieved March 24, 2012, from http://www.census.gov/compendia/statab/cats/international_statistics.html

• Yahoo, Inc. (2012). Yahoo Finance. Retrieved February 14, 2012, from http://finance.yahoo.com/q/bc?t=1d&s=MWW&l=on&z=m&q=l&c=%5EYHOh825