Elevating the Role of Human Capital Metrics Heather Torres Director, Global Workforce Analytics

2 Confidential |

3 from page 17 of Time Warner’s 2008 Annual Report We Knew Our Analysis Had an Impact When… …it made it into the into the annual earnings report. Uncertainty about a possible sale or other disposition of AOL is having an adverse impact on AOL’s workforce that could negatively affect AOL’s business. In 2008, the Company began a strategic review of its ownership of AOL. The uncertainty regarding AOL’s ownership status has had an adverse impact on employee morale and AOL’s ability to attract and retain employees and thus may adversely impact AOL’s ability to implement its business strategy, as well as its advertising relationships and its ability to operate effectively or efficiently.

4 Confidential | Why Human Capital Metrics and Analyses Matter The “war for talent” has been growing in recent years, driving up labor costs and making it harder to find the best and the brightest rise of the knowledge worker – intangible assets dramatically impact stock price Since the rise of the knowledge worker, more than 80% of the valuation of companies is in intangibles - people, intellectual property, etc. Market Cap of the S&P 500 – in trillions Knowing how to get “more from less” is going to be the key to gaining a competitive advantage – technology has transformed the way we work American Worker Productivity (Y over Y increases) The global economic crisis is forcing companies to make difficult choices – if you are forced to make job cuts, you want to make informed choices Cumulative American Job Losses since Jan 2008 – in millions

5 Confidential | Our Success Stories Using simple employee lists in Excel (rosters) to create visualizations that tell a story Taking employee opinion surveys to the next level Using data cubes to go even deeper into the metrics

6 Confidential | Any Questions?