Enero Group Limited · ASX:EGG
Enero — Investor Day (April 2023)
88 slides from Enero's investor day presentation, Apr 4, 2023
Slide 1: Enero Group Strategy Webinar
Enero Group Strategy Webinar 4 April 2023 1
Slide 2: Welcome from the Chair
WELCOME FROM THE CHAIR ANN SHERRY 2
Slide 3: Today's Agenda
Today’s Agenda ENERO’S CAPITAL Q&A 1 2 3 4 BUSINESS OVERVIEW AND BUSINESS MANAGEMENT DELIVERING ON PORTFOLIO OUR STRATEGY 3
Slide 4: Summary Investment Case for Enero
Summary Investment Case for Enero UNIQUE IN BALANCED TRACK SIGNIFICANT COMMITTED AUSTRALIAN PORTFOLIO RECORD OF GROWTH TO SHARE- MARKET TRANSFOR– POTENTIAL HOLDER MATION RETURNS Enero is the only We are a diversified Three-year Enero sits at the Disciplined financial ASX opportunity to group of busi
Slide 5: Business Overview
BUSINESS OVERVIEW BRENT SCRIMSHAW, CEO 5
Slide 6: Is a Creative Technology Company
IS A CREATIVE TECHNOLOGY COMPANY 6
Slide 7: Our Brands
Our Brands enero
Slide 8: Global team of ~900, with offices in 15 cities
Global team of ~900, with offices in 15 cities Benefits of our global offering ✔ Serve global clients with larger marketing budgets ✔ Deep local market IP and experience ✔ Talent retention and global mobility ✔ Deliver work from lower cost markets ✔ Diversify revenue across geographies and capture g
Slide 9: Blue chip clients
Blue chip clients TECHNOLOGY HEALTHCARE CONSUMER 9
Slide 10: Enero sits at the convergence of marketing services
Enero sits at the convergence of marketing services Human-powered Effective ideas that most investment in effectively media to reach communicate a the right audience brand and its with the right CREATIVE MEDIA messaging message at the right time Platforms, data and TECHNOLOGY processes that orchestr
Slide 11: We operate in a massive (and expanding) global market
We operate in a massive (and expanding) global market Enero’s ‘traditional’ Our future TAM widens addressable market is to ~US$1.2tn ~US$500bn Source: Calculation based on WPP, IPG, OMN, Publicis 2021, S4 Annual reports, various market research reports 11
Slide 12: Our market is evolving rapidly
Our market is evolving rapidly Technology is Data drives Lines are blurring Company purpose is New entrants and transforming everything. between the CMO / driving consumer offerings are consumer Measurement, ROI CTO siloes adoption disrupting the expectations of and effectiveness (emergence of Chief
Slide 13: … and so are our competitors
… and so are our competitors 27+ acquisitions since 2018 10 acquisitions in FY23 transformational M&A appetite Solely focused on Doubling down on Stated acquisition content, data/digital ecommerce, digital strategy overlaps and technology transformation, Enero (ABM, US services healthcare and PR Dig
Slide 14: Enero's strategy
Enero’s strategy A CREATIVE TECHNOLOGY COMPANY An integrated offering… … of the most modern marketing … in the verticals that count services … Build deep expertise in Develop end-to-end Become known as experts in Digital, Data and AdTech, offerings through Technology, Healthcare and underpinned by i
Slide 15: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY BRENT SCRIMSHAW, CEO 15
Slide 16: Our operating model
Our operating model WHO WE ARE A CREATIVE TECHNOLOGY COMPANY BRAND TRANSFORMATION CREATIVE TECH & DATA PORTFOLIO PRIORITY GROWTH TECHNOLOGY HEALTHCARE VERTICALS CONSUMER CENTRES OF PEOPLE AND STRATEGY AND FINANCE IT LEGAL EXCELLENCE CULTURE M&A 16
Slide 17: People and culture as a competitive advantage
People and culture as a competitive advantage CAPABILITY EVOLUTION CULTURE EVOLUTION TOOLS AND PROCESSES EVOLUTION Successes • Enero Talent sourced and New global HRIS system (Sage) New leadership across multiple onboarded 282 new hires during Talent implemented for improved Enero brands Great Resig
Slide 18: Portfolio and geographic transformation
Portfolio and geographic transformation 8 COMPANIES IN FOUR SEGMENTS, 5 COMPANIES IN TWO SEGMENTS, PREDOMINANTLY AUSTRALIA FOCUSED GROWTH IN INTERNATIONAL MARKETS Creative Tech Brand Transformation & Data PORTFOLIO COMPOSITION Share of FY19 Group EBITDA Share of H1FY23 Group EBITDA 24% 8% 37% 75% GE
Slide 19: Our strategy in action – a differentiated offering in B2B Technology
Our strategy in action – a differentiated offering in B2B Technology London and EU- Scale in US to Integrated UK Global footprint, centric serve global tech offering expansion into Asia geography brands Traditional PR and Traditional PR and Test investment for new Global capability media relations m
Slide 20: Consistent growth and EBITDA expansion
Consistent growth and EBITDA expansion Change to AASB-16 reporting3 1. Economic interest basis shows OBMedia at 51% ownership 2. EBITDA chart shows EBITDA excluding depreciation of Right of Use Assets. From H1FY23 Enero updated its key measure of performance from Operating EBITDA to EBITDA with Oper
Slide 21: Diversified and recurring client revenue
All data from H1FY23 Diversified and recurring client revenue REVENUE1 BY INDUSTRY REVENUE1 BY GEOGRAPHY AGENCY2 REVENUE MODEL SHARED CLIENT REVENUE1 Transport, Finance Consumer Goods Airlines & Auto 2% 1% 3% Other 1% Services 7% Health Care Australia 2 brands 8% Technology & Asia 25% Project & Telc
Slide 22: Strong performance on all financial metrics
Strong performance on all financial metrics (Dec-19 to Dec-22) 3 YEAR1 FINANCIAL TRANSFORMATION ON ECONOMIC INTEREST BASIS INDUSTRY-LEADING EPS3 GROWTH TOP-TIER TSR4 +61% net revenue2 +119% EBITDA2 +7ppts EBITDA margin2 1. H1 FY2023 compared to H1 FY2020 2. Results shown on an economic interest basi
Slide 23: Macro conditions have impacted marketing spend globally
Macro conditions have impacted marketing spend globally MACRO CHALLENGES HAVE IMPACTED COST ACTIONS IMPLEMENTED AGENCY (EX-OBM) MARGIN HAS SOME CLIENT INVESTMENT ACROSS ENERO PORTFOLIO HISTORICALLY OUTPERFORMED Strategically focused FTE reductions agencies Reduced use of flexible workforce (freelanc
Slide 24: Achieving key milestones on our transformation journey
Achieving key milestones on our transformation journey PEOPLE PORTFOLIO PERFORMANCE • The right capability with the • Building differentiated • Strategically focused cost right leaders to execute our businesses in long-term actions strategy growth verticals • Productivity improvement • Leadership an
Slide 25: Enero Business Portfolio
ENERO BUSINESS PORTFOLIO Business Leaders 25
Slide 26: The AdTech Business
THE ADTECH BUSINESS enero
Slide 27: OBMedia – Enero Group's AdTech Business
OBMedia – Enero Group’s AdTech Business Raja Gupta Mike Lynn Chief Executive Officer Chief Technical Officer OBMedia was established in 2001 by Raja Gupta and Mike Lynn and became part of the Enero Group in 2007 (51% stake) 27
Slide 28: Today we will explain OBMedia through three lenses
Today we will explain OBMedia through three lenses The customer value delivered by our platform What do we do? OBMedia’s economic model How do we make money? Our plans for future growth What are our expansion opportunities? 28
Slide 29: A customer acquisition platform for digital advertisers
Customer Value is a customer acquisition platform for digital advertisers 1 Acquire customers from omnichannel traffic sources 2 Qualify customer intent and quality using proprietary tech 3 Harness data from search engines to continuously Monetise by delivering quality customers to search engines’ a
Slide 30: OBMedia delivers high-intent customers to digital advertisers
Customer Value OBMedia delivers high-intent customers to digital advertisers 1 Acquire 2 Qualify 3 Monetise Customer Customer clicks clicks Customer lands on OBMedia’s page of search results (direct Media buyers use our feed from search engines). Customer taken to the technology to place relevant ad
Slide 31: Technology powers our business
Customer Value Technology powers our business 1 Acquire 2 Qualify 3 Monetise Key technologies Key technologies Key technologies ✓ Ad copy is optimised by OBMedia’s AI technology ✓ AI powered keyword blocks optimise conversion ✓ Intelligent revenue attribution ✓ Data analytics enables systems to matc
Slide 32: OBMedia gives search engines access to new sources of growth
Customer Value OBMedia gives search engines access to new sources of growth Traditional paid Advertisers search advertising US$300bn global market Search OBMedia gives search engines access to Engines new sources of search conversions Display and social Omnichannel OBM Search advertising Publishers
Slide 33: Today we will explain OBMedia through three lenses
Today we will explain OBMedia through three lenses The customer value delivered by our platform What do we do? OBMedia’s economic model How do we make money? Our plans for future growth What are the untapped opportunities? 33
Slide 34: Our economic model is similar to a trading business
Economic Model Our economic model is similar to a trading business Purchase clicks from Sell qualified clicks to traffic markets search engines • OBMedia is profitable when we sell clicks for more than the cost to acquire those clicks • Both buy and sell side market pricing varies dynamically by pub
Slide 35: We receive revenue from search engines and pay cost of sales to publisher networks
Economic Model We receive revenue from search engines and pay cost of sales to publisher networks Acquire Qualify Monetise Customer Customer DISPLAY NETWORK clicks AdMarket clicks Advertisers (OBM’s programmatic optimisation platform) Advertiser pays Data analytics search engine Organic (content) (n
Slide 36: Today we will explain OBMedia through three lenses
Today we will explain OBMedia through three lenses The customer value delivered by our platform What do we do? OBMedia’s economic model How do we make money? Our plans for future growth What are the untapped opportunities? 36
Slide 37: Future growth powered by diversification and technology investment
Future Growth Future growth will be powered by diversification and technology investment Acquire Qualify Monetise Traffic acquisition Native channels Social AdMarket Organic (content) (OBM’s programmatic Display Display optimisation platform) Email Email Data analytics Affiliates Affiliates Other Ot
Slide 38: The Agency Business
THE AGENCY BUSINESS IME & enero
Slide 39: BMF.COM.AU
BMF.COM.AU 39
Slide 40: Stephen McArdle, CEO BMF
STEPHEN McARDLE Chief Executive Officer BMF 40
Slide 41: BMF About Us
ABOUT US BMF 41
Slide 42: Our Clients
OUR CLIENTS BMF Sigma Healthcare Simparica‘ TURO > . B AX transport The Sidney Morning Herald THE, tea. AGE. adrenaline Wy Uf GWF Aer ee GOLD TASM Sharesies 6 (pages lounge Din) lovers onerpey TAL Rest Australians for Mental Health. 2 redballoon Insuranceline 6 FINANCIAL REVIEW “E60 tennis 42
Slide 43: Where the World Is Going
WHERE THE WORLD IS GOING BMF 43
Slide 44: The Agency Landscape
THE AGENCY LANDSCAPE Above the line Through the customer journey TRADITIONAL INTEGRATION TECH & CX MEDIA To creating integrated campaigns with a central By creating channel agnostic ideas which are implemented and reinforced at every stage of the Moving beyond the traditional advertising model idea
Slide 45: Our Point of Difference
OUR POINT OF DIFFERENCE BMF 45
Slide 46: Traditional Services
TRADITIONAL SERVICES CLIENT STRATEGY CREATIVE PRODUCTION Brand Brand Film Retail Retail Animation Campaign Studio Photography OOH Digital Production Radio Social Content TV Digital BMF 46
Slide 47: Our Offering
OUR OFFERING CLIENT CXRM & SOCIAL & BRANDING & EXPERIENCE PR & STRATEGY CREATIVE PRODUCTION TECH CONTENT DESIGN DESIGN ACTIVATIONS Strategy Journey mapping Brand Brand Film Websites Creative CX UX PR Retail Retail Animation Martech Strategy Illustration Social Influencer strategy Campaign Studio Pho
Slide 48: Long Ideas
LONG IDEAS TRUST FRESH MX + X IN THE AUTHENTICITY FAMILIAR CX X FEELING BMF 48
Slide 49: Long Ideas in Action
LONG IDEAS IN ACTION ALDI 32% increase in sales DEPARTMENT OF SOCIAL SERVICES 6 in 10 have taken action Good Different Let’s Stop it at the Start TAL LIFE INSURANCE #1 market leader TOURISM TASMANIA 39% increase in visitation This Australian Life Come Down For Air BMF 49
Slide 50: Market Recognition
MARKET 2023 AdNews Creative and Agency of the Year 2023 AdNews Ad Campaign of the Year RECOGNITION 2022 Effie for Most Effective Retail Campaign 2022 B&T Branding, Design & CX Agency of the Year 2022 Spikes Asia Creative Effectiveness Grand Prix 2021 WARC #1 Most Effective Creative Agency in Austral
Slide 51: Our Revenue Model
OUR REVENUE MODEL BMF 51
Slide 52: New business, organic, hourly rates, deliverables, value
NEW BUSINESS ORGANIC HOURLY RATES DELIVERABLES VALUE BMF 52
Slide 53: Where to Next
WHERE TO NEXT BMF 53
Slide 54: Our Growth Roadmap
OUR GROWTH ROADMAP 01 02 03 EVOLUTION UPSKILLING DOUBLING DOWN We continue to evolve our offering to deliver to Leveraging data and automation to drive The power of strategic brilliance the varied and complex needs of our marketing engagement is something we’re upskilling in and creativity to provid
Slide 55: Wai Kwok, CEO
© WAI KWOK, CEO
Slide 56: We Are in the Business of Connected Experiences
WE ARE IN THE BUSINESS OF CONNECTED EXPERIENCES
Slide 57: Specialists
100 SYD SPECIALISTS NYC 16 YEARS (& COUNTING) ONE MISSION
Slide 58: Slide 58
Slide 59: A New Era in Brand Marketing
A NEW ERA IN BRAND MARKETING 1 2 3 UNPRECEDENTED CUSTOMER RISE OF EMERGING CUSTOMER EXPECTATIONS CHANNELS INTELLIGENCE
Slide 60: We Unlock the Power of Connected Experiences
WE UNLOCK THE POWER OF CONNECTED EXPERIENCES 1 2 3 BRAND EXPERIENCE CATEGORY PLATFORM SPECIALISTS SPECIALISTS SPECIALISTS
Slide 61: Replatforming: Tourism Tasmania App, GSK, Amaysim
TOURISM TASMANIA APP GSK SOCIALS AMAYSIM REPLATFORMING
Slide 62: End-to-End Brand Experience
AUGMENT E D REALITY PR OD U CT INFORMAT IO N AI DRIVEN SYSTEM (PIM) SMA R T A SSISTA NT END-TO-END BRAND EXPERIENCE IONIQ5 MY HYUND AI ECOMMER C E
Slide 63: End-to-End Brand Experience
MARK ETING AUTOMATI ON HCP MEDICAL CU STOME R PLATFORMS ED U CA TIO N & MA STER CLA SS ES END-TO-END BRAND EXPERIENCE PA TIENT SU PPOR T THIRD PARTY C ONTENT PUBLICAT I O N S
Slide 64: Exclusive/Predictable
EXCLUSIVE/PREDICTABLE $ $ $ MASTER SERVICES RETAINER FEE PROJECTS AGREEMENT Committed and consistent Typically exclusive Recurring and ad-hoc spend across multiple agreements to deliver projects to deliver against deliverables services for clients an agreed scope of work
Slide 65: Pharma Consumer
PHARMA CONSUMER
Slide 66: Heather Kernahan, CEO; Matt Quirie, CEO
Heather Kernahan, CEO Matt Quirie, CEO
Slide 67: Who is Hotwire?
HOTWIRE GLOBAL WHO IS HOTWIRE? We’re a communications and marketing consultancy that powers the world's most innovative tech brands.
Slide 68: Global reach
HOTWIRE GLOBAL Global reach North America Europe & Middle East Asia Pacific • San Francisco • London • Amsterdam • Singapore • Beijing • New York • Frankfurt • Dubai • Malaysia • Shanghai • Minneapolis • Madrid • Copenhagen • Tokyo • Hong Kong • Mexico City • Milan • Helsinki • Bangalore • Taipei •
Slide 69: Hotwire Global tech & innovation clients
HOTWIRE GLOBAL Hotwire Global tech & innovation clients
Slide 70: What marketing & comms leaders are facing
HOTWIRE GLOBAL What marketing & comms leaders are facing: The new evolution to the CXO Efficiency focus Transformation to Managing back to Predicting and digital marketing back reputation delivering ROI for issues marketing is becoming the new normal
Slide 71: Helping tech & innovation companies meet their most important goals
HOTWIRE GLOBAL Helping tech & innovation companies meet their most important goals Powering business results with our connected Reputation, Relationship and Revenue service model REPUTATION RELATIONSHIP REVENUE Drive Reputation Grow Relationships Deliver Revenue Brand strategy, narrative Develop rel
Slide 72: Revenue Generation Services
HOTWIRE GLOBAL Revenue Generation Services DIGITAL DIGITAL DIGITAL DESIGN, DEV STRATEGY ANALYTICS MEDIA AND CREATIVE Go-To-Market Strategy Analytics Architecture Search Engine Marketing Creative Services ABM Strategy Reporting Automation Search Engine Optimization Branding CRO Strategy Insights & An
Slide 73: Hotwire Global client logos
HOTWIRE GLOBAL aws ~— Fis mollie Linked ff] «kentik “” salesforce DRFFT tials He elastic (a) BeyondTrust OFYPO petierSloud — LYFQ. ~—Bueleans.- NEXT. NCE Enterprise company SURAT Zontra €loom Malwarebytes servicenow PagerDuty NTTDATA SoFi$% ®"MarkLogic’ ‘@Birdeye B redis Model N falillumio = GitHub
Slide 74: Partnered with tech ecosystem leaders
HOTWIRE GLOBAL Partnered with tech ecosystem leaders with premier and exclusive relationships
Slide 75: Data & analytics solutions with AI fueled insights
HOTWIRE GLOBAL Data & analytics solutions with AI fueled insights
Slide 76: Reputation, Relationship, Revenue
HOTWIRE GLOBAL Reputation, Relationship, Revenue Driving reputation, relationships, and revenue in Reputation a data-led, strategic ABM Drive Reputation approach enables us to Brand strategy, narrative address Honeywell’s biggest development, awareness and growth challenges positioning, thought lead
Slide 77: Reputation
HOTWIRE GLOBAL Reputation Driving brand awareness against competition in key target accounts with influencers and content insight Honeywell’s targeted accounts are engaging with content Honeywell is researched more in ABM accounts developed with key retail influencer Steve Dennis. 2x more than main
Slide 78: Relationships
HOTWIRE GLOBAL Relationships Target Persona 1 Target Persona 2 Target Persona 3 Target Persona 4 Target Persona 5 Our Walmart audience Senior stakeholders at Walmart The first opportunity with began to see a wave of download high value content Walmart is registered Honeywell ABM content that through
Slide 79: Revenue
HOTWIRE GLOBAL Revenue Award winning ABM program with building reputation, relationships and revenue across 15 strategic accounts. 281% over revenue target
Slide 80: Business Model
HOTWIRE GLOBAL Business Model RETAINERS PROJECTS PAID MEDIA • Ongoing relationships to • Contained programs that can • Revenue is a percentage of support continuous business run a few months to multiple paid media spend & needs quarters consulting hours for GTM Strategy Strategic alliances Working a
Slide 81: Growth focus
HOTWIRE GLOBAL Growth focus Three areas of focus ACQUISITION NEW SERVICES & GLOBAL SYNERGY GEOGRAPHIES GROWTH Cross selling for Marketing stack New Chief Growth organic revenue consulting Officer role New global clients Data & analytics Global network solutions focused on new clients APAC expansion
Slide 82: Capital Management
CAPITAL MANAGEMENT CARLA WEBB-SEAR, CFO 82
Slide 83: Enero's capital management strategy
Enero’s capital management strategy Our capital management strategy will give shareholders and potential investors confidence that the Board is focused on disciplined management of our balance sheet and cash. We aim to strike the right balance of investment in opportunities for future value creation
Slide 84: EGG on-market share buyback
EGG on-market share buyback Date announced 4th April 2023 Commencement date From 1st May 2023 Scale Up to 10% of issued shares Term 12 months Share buyback details • Buyback reflects: – Enero’s strong operating performance and balance sheet – Continued strong performance of OBMedia – Confidence in A
Slide 85: Wrap-up and Q&A
WRAP-UP AND Q&A Brent Scrimshaw, CEO 85
Slide 86: Excellent financial profile, growth opportunity
EXCELLENT GROWTH FINANCIAL PROFILE OPPORTUNITY Healthy balance sheet Strong agency foundations with differentiated offer in growth verticals Track record of performance Ability to accelerate OBMedia Clear capital management strategy Continued people and capability enhancement 86
Slide 87: Presenters
Ann Sherry, Chair Brent Scrimshaw, CEO Carla Webb-Sear, CFO Wai Kwok, Orchard Heather Kernahan, Hotwire Matt Quirie, ROI DNA Mike Lynn, OBMedia Raja Gupta, OBMedia Steve McArdle, BMF 87
Slide 88: Disclaimer
Disclaimer This document has been prepared by Enero Group Limited (Enero) and comprises written materials/slides for a presentation concerning Enero. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form par