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LECETIT Conference

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Agenda

• Introduction

• DUNSRight Process

• D&B Ratings & Scores Overview

• Scenario Involving Contractor

• DNBi Functionality & Report Overview (Live Demo)

• Questions

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DUNSRight® is the process D&B uses to turn business data into actionable business intelligence

D&B Global Database

Quality Information

Quality Assurance

Global Data Collection

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EntityMatching

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D-U-N-S®Number

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CorporateLinkage

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PredictiveIndicators

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A view of Corporate Family Tree Linkage

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Global UltimateGlobal Ultimate

SubsidiarySubsidiary

BranchBranch

HeadquartersHeadquarters

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The Standard Credit Score is initially calculated based on a scale of 1 to 100 where a score of 1 has the highest probability of paying invoices severely delinquent over the next twelve months.

The standard score is then translated into five more manageable "risk classes". On this 1 to 5 scale, 1 represents the lowest probability of delinquency and 5 represents the highest. A score of “0” indicates bankruptcy or business change.

Although the risk class may be more manageable, the percentile score allows for a more granular differentiation.

To analyze performance, the portfolio was sorted and broken into 20 equal segments containing approximately 5% of the accounts.

10%

20%

40%

20%

10%

1 2 3 4 5Percentile 91 to 100 71 to 90 31 to 70 11 to 30 1 to 10

Lowest Risk Highest Risk

D&B Predictive ScoringStandard Credit Score

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D&B Predictive Scoring

Financial Stress Score

• The Financial Stress Score is a 1 - 100 ranking where a percentile of 1 has the highest likelihood that a company will experience financial stress, which includes ceasing operations without paying all creditors in full or obtaining legal relief from creditors over the next twelve months.

• The Percentiles are then grouped into five manageable ‘risk classes’. On the 1 to 5 Risk Class scale, 1 represents the lowest risk and 5 represents the highest.

• The chart below shows the Financial Stress Risk Class distribution of businesses in D&B’s Database.

6%

26%

35%32%

1%

1 2 3 4 5Percentile 95 to 100 69 to 94 34 to 68 2 to 33 1

Lowest Risk Highest Risk

PAYDEX – Dollar Weighted Average Based on Trade Experiences

PAYMENT CLASS INDEX WEIGHT

Anticipates 100

Discount 90

Prompt 80

Satisfactory 80

Slow to 15 days 70

Slow to 30 days 50

Slow (no days reported) 50

Slow to 60 days 40

Slow to 90 days 30

Slow to 180 days & over 20

Unsatisfactory 0

Placed for Collection 07

Payd

ex Key

Contractor Scenario

Contractor did not pay the health benefits or pensions for Laborers working on a specific job. You had heard that this contractor was having financial difficulties.

How can you use DNBi to gauge the financial health of this contractor, and to alert you if his financial status changes?

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LIVE DNBi DEMO

• DNBi Overview– Scores & Data Elements

– Portfolio View

– Monitoring

www.dnbi.com

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D&B Account Team

Jim McMyne, Relationship Manager

Office: (610) 882-6578 Cell: (484) 464-3078

mcmynej@dnb.com

Chuck Clifton, Senior Solutions Consultant

Office: (610) 882-7702 Cell: (610) 577-6892

cliftonc@dnb.com

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Questions

Q & A

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