EX-99.1 2 dex991.htm INVESTOR PRESENTATION Investor Presentation
Exhibit 99.1

2
Safe Harbor
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause our actual
results, performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among others, the following: price competition from our existing
competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or
coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in
paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including,
without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term
than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur
additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers,
senior secured credit facility lenders or other counterparties; certain covenants in our debt documents could adversely restrict our
financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing;
fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients’
promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and
results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional
impairment charges against goodwill and intangible assets in the future; possible governmental regulation or litigation affecting
aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and
financial condition; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional
sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct
our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our
clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices
and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings
with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing
information should be read in conjunction with these filings.  We disclaim any intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.

®
Please
refer
to
the
safe
harbor
language
on
slide
#
2

®
4
Sounds of the “New Normal”
“The recession sharpened
the focus on value.”
Dee Warmath, SVP/Retail Insights for NPD
“65% of consumers now believe that saving is more
important than spending.”
Kitsap Business Journal
“Value is here to stay. Period.”
ConAgra Foods CEO Gary Rodkin
“Keeping the value proposition
with consumers is very important
in this
economy.”
D. Morrison, SVP/Pres. Campbell Soup Co.:
“With the economic recovery taking hold slowly and
without significant employment growth, expect coupon
use to continue.”
Nielsen 6.20.10

®
5
“The recession sharpened
the focus on value.”
Dee Warmath, SVP/Retail Insights for NPD
Sounds of the “New Normal”
“What makes a recession
great –
what gives it that
horrible honor –
is whether
it provokes some long-lived
changes in the economy.”
David Wessel, Economics editor, WSJ 4.16.10
“Keeping the value proposition
with consumers is very important
in this
economy.”
D. Morrison, SVP/Pres. Campbell Soup Co.:

®
6
0
2
4
6
8
10
12
2005
2006
2007
2008
2009
2010
0
20
40
60
80
100
120
2005
2006
2007
2008
2009
2010
Economic Indicators
Unemployment: BLS
Consumer Confidence: Conference Board
Unemployment
Consumer Confidence
The National Bureau of Economic Research declared that the
so-called Great Recession is over, determining that the U.S. economy
hit bottom in June 2009 and began a long, sluggish rebound.

®
7
Meet Jane: The Average U.S. Consumer
•
Age: 37 
•
Jane’s family has 3 people
•
67% of Janes are homeowners
•
Her household’s income is $43,460
­
34% of her income goes to housing
­
18% goes toward a car payment and fuel
­
12% of her income buys food
Source 1: U.S. Census
Source 2: Bureau of Labor Statistics
$43,460
2
1
1
1

®
8
Wall Street is not Main Street
Source 1: U.S. Census
Source 2: Bureau of Labor Statistics
Source 3: Cerulli
Associates
Average Income on
Wall
Street:
$392,000
$43,460
3

®
9
The Post-Recession Consumer
Shops on payday
I will spend at
86% of the
pre-downturn
level.
4
Struggling with bills
•
77% live paycheck to paycheck
•
Has $124,000 in household debt
•
11% are delinquent on their mortgages
Source 1: Harris Interactive, 2010
Source 2: US Census, 2008
•
Sustainability is the new American dream
•
Today’s consumer is looking for security
rather than luxury
Source 3: US Census
Source 4: AlixPartners, 2009
Harris Interactive, 05.10
High income consumers are saving
•
61% of households with an income of
$100,000+ have redeemed a coupon in the
past six months
1
1
2
3

®
10
The Consumer Consciousness
0%
10%
20%
30%
40%
50%
60%
Aug-
08
Oct-
08
Dec-
08
Feb-
09
Apr-
09
Jun-
09
Aug-
09
Oct-
09
Dec-
09
Feb-
10
Apr-
10
Jun-
10
Aug-
10
Spend about the same
Spend less
Spend more
Intentions to Spend More, the Same or Less in the Coming Month
Source:  ShopperScape, Aug 2008 – Aug 2010, (three-month moving average)

®
11
Consumers are Seeking Value
33%
Business
as usual
61% Value
seekers
Recession Indifferent
(12%)
Not likely to change how
they shop
Recession insensitive
(21%)
Cutbacks will primarily be
on highly discretionary
items
Coupons and sales (22%)
Stock up and save (13%)
Switch to private label (11%)
Brand disloyal (8%)
Switch stores for deals (7%)
Source: The Nielsen Company, Are Value-Themed Ads Making an Impact? 08/09
6% Panic Stricken
Beyond price sensitive, these consumers
will do “whatever it takes”
to save money
and cut expenses

®
12
Consumers are Promotion Sensitive and Price
Conscious
Source: 2010 NCH Consumer Survey
Promotion
Sensitive,
56%
Price
Conscious,
21%
Brand
Loyal, 11%
Time
Crunched,
4%
Not Sure,
8%
77%

®
13
Savings Behavior Learned From the Recession
Source 1: BIGresearch CIA July 2010
Source 2: Deloitte & Harrison Group, 2010
87%
of consumers’
lifestyles have
been affected by the recession
1
89%
feel they have become more
resourceful because of the economy
2

®
14
Savings Behavior Learned From the Recession
Source: NCH Marketing Services, Inc 2010 Consumer Survey.
29%
29%
I like to save money
I need to stretch my
budget
What is the main
reason you are using
more CPG coupons
than before?

®
15
Source: BIGresearch CIA July 2010; Total U.S.: All adults 18+: 9009
19%
28%
34%
44%
48%
I will take more practical vacations
I will be more conservative when
buying a car
I will spend less on entertainment
I will spend less dining out
I will be more price conscious when
buying clothing and food
Savings Behavior Learned From the Recession
Do you think the current economic crisis will impact your
lifestyle over the next 5 years in any of the following ways?

®
16
Has your personal economic situation caused you to
make any of the following changes?
If so, do you expect to continue in the future?
Source: NCH Marketing Services, Inc 2010 Consumer Survey.
Savings Behavior Learned From the Recession
Made this change due
to personal situation
Expect to
continue
73%
25%
I am
clipping
more
coupons
than before
Source: North American Technographics Media and Advertising Online Survey, Q2 2009

®
17
Savings Behavior Learned From the Recession
66%
55%
45%
36%
36%
I actively seek coupons and
deals to save money
I do more research now
before buying products
I use search engines more
I rely more on reviews and
recommendations from people I know
I pay more attention to
ads and promotions
Source: North American Technographics Media and Advertising Online Survey, Q2 2009

®
18
Savings Behavior Learned From the Recession
Source 1: USPS Household Diary 2009
Source 2: DMNews
Direct Mail Survey 2008
64%
of consumers are
examining their mail
more closely
for coupons
and discounts than six
months ago.
2
79%
of households
either read or scan
advertising mail sent
to their household.
1
44¢

®
19
Source 3: FMI Brand and Retailer Loyalty Survey, 12/09
Savings Behavior Learned From the Recession
of consumers say that a good
selection of private label products
is an important grocery store
attribute
63%

®
20
63%
Total U.S. Adults
61%
Matures (65+)
63%
Baby Boomers (46-64)
66%
Gen X (34-45)
60%
Echo Boomers (18-33)
I purchase more generic brands.
3
Savings Behavior Learned From the Recession
In 2010 store brands hold 18% of dollars spent
Source 3: The Harris Poll® #25, Feb. 16, 2010

®
21
Savings Behavior Learned From the Recession
Source: IRI July 2007 Channel Migration Report IRI Aug. 2010 Channel Migration Report
1%
7%
13%
56%
49%
19%
12%
2%
Grocery
Supercenter
Club
Dollar
Channel Migration to Value Stores 
“Switch Stores for Deals”
CPG Dollar Share by Channel

®
22
Savings Behavior Learned From the Recession
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Traded Up After Recession
Traded Down During Recession
Source: Kantar White Paper - Value Will Remain Focus July, 2010

®
23
Savings Behavior Learned From the Recession
•
49% will
consider each purchase
more carefully
•
41%
plan
to
continue
taking advantage of good sales/deals
•
33%
will
continue
to use more coupons
•
33%
will
save
more
of what they earn
•
32%
will
do
more
price
comparison
shopping
before
purchasing
Bullets 2,3,5  Source: Kantar Retail, ShopperScape Monthly Review, 03.10;
Bullets: 1,4 : BIGresearch CIA 07.10; Q: Do you think the current economic crisis will impact your lifestyle over the next 5 years in any of the following ways?

®
24
Purchase Influence is the key to Winning
53%
20%
15%
26%
27%
50%
Eating
Out
Electronics
Apparel
Home
Improvement
Grocery
Word of Mouth
43%
34%
33%
39%
Circulars/
Inserts
24%
26%
21%
40%
TV Broadcast
28%
23%
22%
26%
Internet
25%
19%
12%
13%
Email
24%
26%
11%
15%
Coupons
21%
31%
18%
71%
Purchase Category
Source: BIGresearch
Simultaneous Media Survey, June 2010

®
25
•
81%
conduct at least an hour of research before they shop
•
64%
look at store flyers before or at the store
•
63%
bring coupons to the store
•
50%
make lists using store ads or coupons
•
41%
of brand buying decisions are made before entering the store
Source:
IRI
Consumer
Trends,
Dissecting
the
Downturn
generation,
2009
Consumers use Print
to Plan Their Shopping Trips
Source: Shopper Marketing:  Unleashing the Next Wave of Value, GMA/Booz Allen, 2009
In Aug ’09,
89%
of consumers
said they
used coupons when planning shopping lists.
This
was
an
increase
of
10%
from
2007.
58% of the shoppers
chose the store they
visited, because it offered lower prices on
things they wanted.

®
26
49%
52%
Coupons from Mail
Coupons from
Newspapers
Source: Shopper Marketing:  Unleashing the Next Wave of Value, GMA/Booz Allen, 2009
Out of Store Influences when Selecting
Brands for a Shopping List:
•
Consumers rein in their spending by sticking to a shopping list.
•
High correlation between shopping list preparation and use of
coupons.
Consumers use Coupons to Plan Their Shopping Trips

®
27
Source: Economy Triggers Shopping List Renaissance: What It Means for Marketers, NCH Coupon Sentinel, Aug. 2009
75%
of all shoppers are
making food decisions at
home.
Up
from
60%
in
prior
year.
64%
said they’re using
store ads or coupons when
making their shopping lists,
up
from
50%
last
year.
Chart Source: BIGresearch American Pulse Survey, December, 2008.
4%
28%
29%
47%
67%
Planning With Print
Where
Consumers
Look for
Inserts

®
28
Response rates are derived from all verticals covering multiple forms of print media.  Calculated from 8,300 individual marketing events
102
100
146
115
2007
2008
2009
2010
Shared Mail and Inserts Drive Consumers
•
Valassis has tracked over 9,000 advertising programs since
2007
to
determine
the
effectiveness
of
our
clients’
campaigns.
•
Shared Mail and Newspaper Inserts perform and have grown
since the recession began.

®
29
Pre-Recession
Recession
Post-Recession
11%
30%
22%
25%
12%
Always
Very Often
Sometimes
Rarely
Never
6%
18%
36%
31%
12%
6%
17%
37%
29%
12%
6%
16%
37%
30%
12%
The Current Economic Conditions are Maintaining
Overall High Coupon use and Increasing Regularity
2007
Total: 89%
Source: NCH 2010 Consumer Survey
64%
Regularly
2008
Total: 94%
2009
Total: 94%
2010
Total: 94%
76%
Regularly
77%
Regularly
78%
Regularly

®
30
2010 First Half Coupon Redemption Volume
Continues To Outpace Prior Year
(Quarterly U.S. CPG Coupon Redemption Volume, In Millions)
675
650
600
675
850
825
800
800
775
850
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
2009
2008
2010
Source: NCH Mid-Year 2010 Coupon Fact Report
+8% change
YoY

®
31
Coupon Redemptions Continue to Increase in 2010
8%
5%
4%
18%
20%
25%
Grocery
Mass
Merchandise
Drug Store
Source:
NCH
Coupon
Facts
-
Redemption
by
Class
of
Trade

®
32
In summary. . .
•
Consumers must stretch each
dollar
•
The New Normal
is a savings
mentality
•
Value Media
[such as Inserts
and
coupons]
are
key
in helping
the consumer navigate their way
to savings.

Please refer to the safe harbor language on slide #2  

35
Regardless of Marketing Spend –
“We Will Get Ours”
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 (e)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Industry Marketing Spend
Valassis Revenue
Sources:
Industry Ad Spend, Kantar Media
Valassis Revenue, Internal Tracking
2010 estimate based on 1H 2010 vs. 2009 trend
2001
Ad
Recession
Outperform +4%
"The
Great
Recession"
(2007
-
2009)
Outperform +6%

Our Blended Media Solution Influences Consumers
As They Plan Their Purchases
Our RedPlum
portfolio
engages consumers
and produces a
positive ROI for our
clients
36

37
Valassis Has A Diverse Client Base
Source: Valassis Revenue by Vertical, Internal Tracking 2009
CPG
Specialty Retail
Consumer
Services
Financial
Direct Marketers
Telecom
Restaurant
Grocery & Drug
Satellite
Discount Stores
All Other

38
Marketing Spend Headroom
Sources: Valassis Revenue 2009; Ad Industry Spend, Kantar 2009
2%
3%
2%
1%
2%
2%
6%
29%
5%
5%
$0
$5
$10
$15
$20
$25
Industry Ad Spend 2009
Valassis
Share

INTENTIONALLY OMITTED

40
Source: BIGresearch
Simultaneous Media Survey, June 2010
Purchase Influence is the Key to Winning
Purchase Category
20%
15%
26%
50%
Word of Mouth
43%
34%
33%
39%
TV Broadcast
28%
23%
22%
26%
Internet
25%
19%
12%
13%
Email
24%
26%
11%
15%
Electronics
Apparel
Home
Improvement
Grocery
Eating
Out
Circulars/
Inserts
24%
26%
21%
40%
27%
Coupons
21%
31%
18%
71%
53%

41
Where Consumers Look for Inserts
Source:
BIGresearch
American
Pulse
Survey,
December,
2008.
Base:
4,117
4%
28%
29%
47%
67%

42
Sources: NAA, Editor & Publisher Yearbook, U.S. Census
0
50
100
150
200
250
300
350
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
0%
20%
40%
60%
80%
100%
Population Coverage
Newspaper Circulation (Daily & Sunday)
US Population
Client Challenge:
Population Growth + Circulation Decline = Diminishing Scale
Widening Coverage Gap

Diminishing Scale = Diminishing Returns
Sources: Valassis Co-op FSI Market List; U.S. Census
43
699,410
1,273,595
775,520
Households
222,000
434,000
235,000
2006 Newspaper
Circulation
171,000
320,000
195,000
2009 Newspaper
Circulation
477,000
871,000
560,000
2010 Shared Mail
Circulation
Las Vegas
Pittsburgh
Providence
2006 Newspaper
Coverage
30%
34%
32%
2009 Newspaper
Coverage
25%
25%
24%
2010 Shared Mail
Coverage
72%
68%
68%

Recovering Scale = Enhancing Returns
Sources: Valassis Co-op FSI Market List; U.S. Census
Profit Enhancement compares 2010 to 2009 based on $5 FSI CPM, assuming $1.25 profit per unit
44
2,220
4,340
2,350
2006 Newspaper Units
1,710
3,200
1,950
2009 Newspaper Units
4,770
8,710
5,600
2010 Shared Mail Units
Las Vegas
Pittsburgh
Providence
Unit Decline
(400)
(1,140)
(510)
Profit Enhancement
+ $2,737
+ $4,133
+ $2,295

45
Tipping Point –
Coverage Correlation
There is a correlation between newspaper coverage and our Shared
Mail content
7
8
9
10
11
< 15%
15-20%
21-25%
26-30%
31-35%
36-40%
41-45%
46-50%
>50%
Sunday Newspaper Penetration

Tipping Point Evolution = Augmentation
Digital
Shared Mail
Newspaper
46

47
Regardless of Marketing Spend
“We Will Get Ours”
•
We expect spending to rise, we
have headroom and we expect
our share to grow
•
Circulars, inserts and coupons
will continue to have a high
influence on purchase decisions
•
Shared Mail is a strong solution
to diminishing newspaper scale
•
We believe digital augmentation
will continue to grow

®
Please refer to the safe harbor language on slide #2

RedPlum Shared Mail
Free-standing inserts (FSI) -
Co-op newspaper inserts
Coupon and promotion clearing
Digital portfolio
In-store media
Canadian media operations
Sweepstakes/security consulting
Direct mail sampling/advertising
Loyalty marketing software
Newspaper inserts
On-page newspaper advertising (ROP)
Newspaper polybag
sampling/advertising
Door hanger sampling/advertising (Direct-to-Door)
Shared mail wrap
Shared mail inserts
Saturation mail
List services
Neighborhood Targeted
RedPlum Free-standing Inserts
International, Digital
Media & Services
Portfolio Overview
50

51
Key Drivers of Sustainable Growth
•
Shared Mail
•
FSI
•
In-Store Media
•
Digital Portfolio
•
Cash Flow Utilization

52
Shared Mail
•
Benefits from declining
newspaper circulations
•
Strong operating leverage
•
The opportunity:                 
Las Vegas a good example
Estimated Revenue Growth
Estimated Profit Growth

53
FSI
•
Benefits from consumer value-
seeking behavior
•
Marketers response driving unit growth
•
Marketers achieve multiple objectives
•
The opportunity:
–
$165MM in profit recovery
Estimated Revenue Growth
Estimated Profit Growth

54
In-Store
•
Better concept for retailers and
consumers
•
Unique business model for
retailers
Estimated Revenue Growth
Estimated Profit Growth

55
Digital
•
Ongoing investment
•
Expanding digital portfolio
•
The opportunity: integration of
offline and online media
Estimated Revenue Growth
Estimated Profit Growth

56
Cash Flow Utilization Options
•
To improve EPS
–
Share repurchase
–
Interest expense reduction
•
To invest in the business
–
New client development
–
New product development
–
Acquisitions
Estimated Revenue Growth
Estimated Profit Growth

Key Drivers of Sustainable Growth
Estimated Revenue Growth
Estimated Profit Growth
57

Please
refer
to
the
safe
harbor
language
on
slide
#2

Navigating Complex Change
A Road Map for Success
60

Navigating Complex Change
A Road Map for Success
61

More Planning at Home Prior to Shopping
60.0%
40.0%
75.0%
25.0%
85.0%
15.0%
86.0%
14.0%
2007
2008
2009
2010
Store
Home
Where Purchase Decisions are Made
Source: Information Resources inc, 2010
62

2008
2009
Redemption
2008
2009
Distribution
Consumer Coupon Demand Outpaces Marketer Supply
+23%
+11%
Source: NCH Marketing Services, Inc.
63

64
A Sign of the Times
102
100
146
115
2007
2008
2009
2010
Shared Mail & Inserts Drive Consumers
•
Valassis
has tracked over 9,000 advertising programs since
2007
to
determine
the
effectiveness
of
our
clients’
campaigns.
•
Shared Mail & Newspaper Inserts perform and have grown
since the recession began.

65
2006
2007
2008
2009
86 M
88 M
90 M
92 M
94 M
96 M
98 M
100 M
102 M
104 M
106 M
Source: NAA/Editor & Publisher Yearbook
Who’s Not
at the Door –
Sunday Newspapers

Navigating Complex Change
A Road Map for Success
66

Direct to
Door
Direct Mail
Shared
Mail
Digital
Newspaper
In-Store
67

68
In-Store
Digital
Direct to
Door
Shared
Mail
Newspaper
Direct Mail

69

Source:  Valassis Revenue by Vertical, Internal Tracking 2009
70
$-
$100
$200
$300
$400
$500
$600
2003
2009
Integrated Solutions
+$550M

71

Why
Shift?  
72
Newspaper         
Only Buy
Covered Stores
15
Newspaper Circulation
350,485
Shared Mail Circulation
0
Distribution Total
350,485
Qualified Trade Area HHs
Reached
255,846
Percent of Qualified HHs
73.0%
Wasted Circulation HHs
94,639

73
Top
&
Bottom
Line
Incentive   
Newspaper         
Only Buy
Optimized Buy
Covered Stores
15
15
Newspaper Circulation
350,485
256,512
Shared Mail Circulation
0
104,754
Distribution Total
350,485
361,266
Qualified Trade Area HHs
Reached
255,846
312,254
Percent of Qualified HHs
73.0%
86.4%
Wasted Circulation HHs
94,639
49,012

74

Integrated Media Optimization -
IMO
•
Plans managed at the national level, optimized
to the local level
•
Optimize your media spend for better coverage
of desired target and/or store coverage
Valassis offers a proprietary ability to quickly and efficiently
combine
multiple solutions from our portfolio
to deliver an optimized coverage
plan.
Client Objectives
Three Customized
&
Optimized
Media Solutions
IMO
Our proprietary,
mathematical model and
optimization engine calculating
and analyzing thousands of
variables
75

®
76

®
Suspect to
Prospect
Close and
Onboard
Learn and
Enhance
Employ
IMO/Migrate
77

A Case Study
Mark Walsh         
CEO
78

®
79
Suspect to
Prospect
Close and
Onboard
Learn and
Enhance
Employ
IMO/Migrate

®
Suspect to
Prospect
80
Initial Interest in
Valassis
Driven By:
•
Business dynamics created
by recession
•
Cost savings

®
Suspect to
Prospect
Doing the Deal -
Valassis
Promise
•
Save money / Improve execution
•
Free up internal resources
•
Eliminate non-productive circulation
•
Save $500,000 in annual print
budget
•
Improve new client acquisition
81

®
Suspect to
Prospect
Employ
IMO/Migrate
IMO Recommends:
•
A significant shift to Shared Mail
•
Deliver an additional 600k
high potential household
•
Reduction in wasted circulation
82

®
Suspect to
Prospect
Employ
IMO/Migrate
Learn and
Enhance
The Results:
•Positive performance from
Shared Mail
•Significant savings generated
from media and product
efficiencies
•Opportunity to enhance our
Partnership with Valassis
83

®
Share
Shift
Creating Sustainable Long-term Revenue
Growth
84

®
New
Business
Initiatives
Creating Sustainable Long-term Revenue
Growth
85

®
Price
Creating Sustainable Long-term Revenue
Growth
86

®
Price
Shift
Share
New
Business
Initiatives
Creating Sustainable Long-term Revenue
Growth
87

Please refer to the safe harbor language on slide #2

Why we Expect to win in Digital…..
•
Capitalize on Long-standing
Customer Relationships to
Generate Content
•
Robust, Flexible and
Adaptive Digital Platform
•
Blend Offline and Online
Media
Consumer
Behaviors
Advertising
Channels
Emerging
Technology
90

91
Products to Engage Consumers
1
Source: Internal Valassis data & statistics, August 31, 2010
0
20
40
60
80
100
87 Million
Email
1
0
5
10
15
20
25
21 Million
Print
1
0
500
1000
1500
2000
2500
2 Billion
Display Ads
1
0
5
10
15
20
25
20 Million
Text Offer
1
0
5
10
15
20
25
20 Million
Offer to ID
1

92
Channels to Reach Mass and
Targeted Audience
1
1
2
3
1
1
Source: Internal Valassis data & statistics, August 31, 2010
2
Source: Compete.com, August 31, 2010
3
Source: Facebook.com, August 31, 2010
651 Million
Messaging
Points

Robust and Flexible Digital Platform
93

94
Integrate Data to Enhance Market Coverage

iDeal
Position for Integrated Offline and
Online Media
Scalable
Distribution
Advertiser
Message
Consumers
Blended
Product Portfolio
95

Blended
Product Portfolio
iDeal
Position for Integrated Offline and
Online Media
Scalable
Distribution
Advertiser
Message
Consumers
96
Competitive Advantage
•
Blended Media Solutions
•
Custom Targeting
•
Optimized Media Plans
Competitive Advantage
•
Blended Media Solutions
•
Custom Targeting
•
Optimized Media Plans

Our Technology is Live Today
97

Send Offer to a Friend (Or Two!)
98

99
Using Open ID

100
In Summary...What Makes Valassis iDeal
•
Deep Customer
Relationships Generate
Valuable Content
•
Robust and Flexible Digital
Platform Allows us to
Adapt Quickly
•
Our Blended Offline &
Online Creates Powerful
Channel

Please refer to the safe harbor language on slide #2

103
In-Store Marketing
•
The Market Today
•
Our Position
–
Market Share
–
Retailers
–
Product Portfolio
•
Market Response
–
Retail
–
Advertiser
•
Future State
–
2010 and beyond

104
The In-Store Market Today
At-Shelf Branding & Promotion = $550m*
*estimated

105
The Market Today
•
Majority of media spend is in Food, Drug, Mass sector
•
Retailers/Stores Participating = 50,000+ stores*
–
20,834 Drug
–
15,454 Food
–
8,998 Mass, Staples, Family Dollar
•
Feature shelf ads, coupons, take one’s, floor ads, etc.
•
Sold to Consumer Packaged Goods community, highly
desired/effective moving product
•
Market Leader
–
Estimated $500m in revenue/$200m in profit
*NewsAmerica
Website

106
How Valassis Changed The Game
•
Retailer-centric Model
•
Industry Trend to “Clean Store”
–
Control
–
Transparency
•
Financials
•
Content
•
Creative
–
Financial Upside
•
Goal: Create a true partnership between retailer and
Valassis

107
IN-STORE MARKETING
Supervalu Boosts Brands
By Re-engineering Center Store
By Dale Buss
When
it
came
to
the
crucial
but
outmoded
center
of
their
stores,
Supervalu
executives
realized
that
shoppers
were
drowning
in
merchandising
messages,
price
promotions
and
other
communications
–
hurting
the company’s CPG
suppliers as well as the chain’s own performance.
So the Minneapolis-based owner of supermarket megabrands is in the midst of
a radical simplification of its in-store marketing strategy and streamlining of its
execution in a new initiative with major manufacturer-partners such as General
Mills and Nestle, and marketing-services giant Valassis.

108
AdPOP
6% -13% average lift
BladePOP
6% -13% average lift
CouponPOP
18% -
34% average lift
InfoPOP
7% -
13% average lift
DealPOP
26% average  lift without TPR
118% average  lift with TPR
FloorPOP
7% -
16% average lift
RedPlum™
In-Store Portfolio
Source of lift data Insignia Systems and Smartsource.com

109
The Customers Respond…….
“We
could
not
be
happier
with
this
new
strategy
and
our
choice
of
partner at Valassis.”
-
Julie Dexter Berg, CMO SUPERVALU
“It totally makes sense about getting rid of the clutter and narrowing down the options
for the consumer’s experience.”
“Just
seems
like
a
really
big
deal
changing
the
quality
of
the
in-store
signage
(regarding
the signage being of vinyl substrate vs. paper).”
-Joanna
Jones,
Director
of
Business
Leadership
–
Momentum 
(Smucker's
Primary Agency of Record)
(CouponPOP)
“Sturdier
than
the
Smart
Source
Coupon
Machine.
We
like
the
creative
shell
more.
Given
the
size
of
the
box,
we
think
it
should
garner
more attention than
the Smart Source Coupon Machine…even with the red flashing light.”
-
-
(InfoPOP)
“They
look
GREAT!
The
print
quality
is
really
nice.”
-Kristen Holahan, Integrated Marketing Manager --Campbell Soup Company
Kevin Sherman, Brand Manager – MARS Ice Cream

110
The Valassis Network –
Over 2,200 Stores

111
2010 top Supermarket Retailers
with In-Store Media
RETAILER
# of Stores*
1.
Kroger Co.
3,634
2.
Supervalu
2,450
3.
Safeway
1,730
4.
Delhaize America
1,608
5.
Publix Super Markets
1,018
6.
Ahold
USA
707
7.
Winn-Dixie Stores
515
8.
A&P
435
9.
Giant Eagle
376
10.
Savemart
244
*Information
from
Supermarket
News   
Corporate and/or Franchise Stores, dated 2010

112
How we are Faring for Content
With 3 Cycles of Data:
•
We are getting about 80% of all
content/ads
•
Creating organic programs based on
flexibility and adaptability
•
Pleased with trends thus far

113
New Business Development (In-Store and
Digital)
•
Responsible for an estimated $40 million in
incremental revenue on an annual basis

Please refer to the safe harbor language on slide #2  

116
Low Cost Producer
•
Major Cost Components
•
Continuous Cost Improvement
•
The Valassis Difference

117
83.5%
11.8%
4.7%
NT
40.2%
28.4%
31.4%
FSI
66.5%
21.8%
11.7%
Total
66.9%
Distribution
25.5%
Production
Operations
7.6%
Paper
SM
Major Cost of Goods Sold Components
Based on 2010 YTD costs

Paper
The effect that paper costs have on Valassis
performance is limited
The effect that paper costs have on Valassis
performance is limited
12%
Contracts
Production Waste
Volume & Fit
118

119
Production
Our goal is to achieve at least 5% improvement
every year
Valassis
Continuous
Improvement
Equip for Purpose
Safety
Supply chain

120
Distribution
Integrated media optimization is a great advantage
Relationships
Cost/Unit Optimization
Alternatives
Scale—Buying Power
100 Million
Shoppers
Weekly

121
Client Services
Our goal is to achieve at least 5% efficiency
improvement every year
750 Associates
Client-facing
Graphics Automation
Velocity
AMS + CFI

122
Advanced Management System
Plan
Schedule
Implement
Report
Forecast
Continuous Improvement
Achieved
3 to 15%
Productivity
Improvements*
*Based on AMS installations in Client Services and Targeting, 2009

123
Culture
Great Culture >> Top Performers >> Low Cost Producer
Associate
Experience
Recognition
Programs
Top
Performers
Training &
Development
Accountability

Please refer to the safe harbor language on slide #2

126
Capital Expenditures
(fiscal year)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
ADVO
Valassis
Notes:
ADVO
annual
amounts
through
2005
are
for
fiscal
years
ended
on
the
last
Saturday
in
September,
while
Valassis
annual
amounts
are
for
fiscal
years
ended
December
31.
The
ADVO
fiscal
year
2006
amount
includes
five
fiscal
quarters
ending
on
December
30,
2006.
ADVO
2007
capital
expenditures
are
from
December
31,
2006
through
March
2,
2007.
The
estimated 2010 capital expenditures shown above are based on Valassis Full-year Guidance provided in its second quarter
2010 Earnings Release.  This guidance, provided as of July 29, 2010 by management, was based on the economic
environment as of such date.  Actual results may differ materially.  No reference (oral or written) to such data should be
construed as an update, revision, confirmation or clarification of same.

127
Capital Expenditures and Depreciation
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
CapX
Depreciation
$12.6 mm
amort. of
intangibles
(fiscal year)
Notes:
See
capital
expenditures
notes
on
previous
slide.
ADVO
annual
amounts
through
2005
are
for
fiscal
years
ended
on
the last Saturday in September, while Valassis annual amounts are for fiscal years ended December 31.  The ADVO fiscal year
2006
amount
includes
five
fiscal
quarters
ending
on
December
30,
2006.
ADVO
2007
capital
expenditures
and
depreciation
amounts are from December 31, 2006 through March 2, 2007.  The depreciation amount for 2010 is estimated; the actual
amount may differ materially.

128
2010 to 2011 Pre-tax Income Bridge

129
2011 Interest Expense Savings
•
Current Swaps Expire on December 31, 2010
–
$447.2 million of our term loans with 3-month LIBOR fixed at 5.026%
+ 2.25% spread = 7.276%
•
New Swap Begins on December 31, 2010
–
3-month LIBOR fixed at 2.005% + 2.25% spread = 4.255%
–
Matures on June 30, 2012
–
Notional amount $300 million
•
Amortizing at the end of each quarter by $40 million
•
Down to $100 million notional for the quarter-ended June 30, 2012
•
Estimated 2010 Debt Reduction = $305 million
1
•
Estimated 2010 Interest Expense, net = $63.9 million
2
1
Represents actual debt payments through June 2010, plus scheduled term loan amortization for 2010.
2
Based
on
Full-year
2010
Guidance
provided
in
Valassis
second
quarter
2010
Earnings
Release.
This
guidance,
provided
as
of
July 29, 2010 by management, was based on the economic environment as of such date.  Actual results may differ materially. 
No reference (oral or written) to such data should be construed as an update, revision, confirmation or clarification of same.

Estimated 2011 Interest Expense Calculation
130

Estimated Annual Excess Cash Generation
1
Based on Full-year 2010 Guidance provided in Valassis second quarter 2010 Earnings Release. This guidance, provided as of
July 29, 2010 by management, was based on the economic environment as of such date.  Actual results may differ materially. 
No reference (oral or written) to such data should be construed as an update, revision, confirmation or clarification of same.
2
Excludes any changes in operating assets and liabilities (working capital) and stock repurchases made to date.
NC
= No expected material change.
131

132
Estimated 2011 Sources and Uses of Cash
•
Cash Generation Through 12/31/11
–
Cash & equiv. on 12/31/09 = $130 million; plus
–
Excess cash generation in 2010 = estimated $140 million (less cost of 2010 share repurchases
and any changes to operating assets and liabilities [working capital]); plus
–
Excess cash generation in 2011 = ?
•
Term Loan Negative Covenant Considerations
–
Share repurchases:  basket calculated in part at up to 50% of previous year’s consolidated
net income
•
Could be approximately $195 million
1
beginning March 2011
–
Acquisitions:  up to an aggregate of $200 million
•
Debt Repayment
–
Call provision on 2015 8.25% senior notes in March 2011 at 104.125%
•
However, only permitted under certain limited circumstances
Valassis is not under any obligation to buy back its stock; and if it does, Valassis would be subject to the
terms of the approved share repurchase program.
1
Based
on
Full-year
2010
Guidance
provided
in
Valassis
second
quarter
2010
Earnings
Release.
However,