Cliq Digital Ag · XETR:CLIQ
Cliq Digital — FY2021 Earnings Presentation
25 slides from Cliq Digital's earnings presentation, Mar 1, 2022
Slide 1: FY 2021 Financial Results
FY 2021 Financial Results 1 March 2022
Slide 2: 1. Strategic Update
1. STRATEGIC UPDATE
Slide 3: CLIQ Digital at a Glance
03 CLIQ DIGITAL | AT A GLANCE 130 18.2 €1.10 PROFIT FOR THE YEAR (€m) €2.74 EPS Employees GR CA % 38% female DIVIDEND 83 10.4 62% male >30 €1.16 PROPOSAL EPS 3.9 3.0 €0.34 EPS €0.36 EPS tio 40% payout ra Operating 2018 2019 2020 2021 countries Streaming 2025e 2025e provider 4 – 5m €500m specialising
Slide 4: Market Growth | Sweet Spot Niche
04 MARKET GROWTH | SWEET SPOT NICHE GROWTH RATES OF MAJOR MEDIA AND ENTERTAINMENT SECTORS CAGR UNTIL 2027 $447 bn Cloud games + 24.4% + 48.2% GLOBAL DIGITAL Audiobooks MEDIA REVENUE Movies/Series + 20.4% FORECASTED FOR 2026 Music + 17.8% Games + 12.9% Statista Digital Media Report 2021 Grand View Re
Slide 5: Business Model | In a Nutshell
05 BUSINESS MODEL | IN A NUTSHELL We are a global streaming provider specialising in performance marketing of affordable entertainment products. MOVIES & SERIES MUSIC SPORTS AUDIOBOOKS GAMES • Five categories bundled into one affordable solution 1. Strategic Update • Value for money
Slide 6: Business Model | Evolution of CLIQ
06 BUSINESS MODEL | EVOLUTION OF CLIQ FUTURE PRESENT PAST Multi- & single-content • Global rollout of multi- and single-content portals Movies Series Music Single-content Audiobooks Sports Games • Improved portfolio - additional Joke of the day Ringtones Dynamic billing model categories and increase
Slide 7: Business Model | Strategic Milestone
07 BUSINESS MODEL | STRATEGIC MILESTONE In 2019, the company took the strategic decisions to 1. offer members access to multi-content portals (in addition to the single-content offering) and 2. build an own media buying team to make CLIQ Digital less dependent on affiliate performance marketing part
Slide 8: Business Model | Performance Marketing
08 BUSINESS MODEL | PERFORMANCE MARKETING I: MARKETING CAMPAIGNS II: PAYMENT MEANS III: ACCESS TO CONTENT • Customer journey: Member acquisition via performance marketing on search engines (e.g. Google, Bing), social media (e.g. Facebook, Insta), big publishers and other channels • Modus operandi: U
Slide 9: Business Model | Portal Examples
09 BUSINESS MODEL | PORTAL EXAMPLES CLIQ’s business model centres on the selling of membership-based digital entertainment services Cliq Digital Scream-Stream Wizzgames Vimovigo Moodplay Hörbie Blacknut MULTI-CONTENT PORTALS SINGLE-CONTENT PORTALS 1. Strategic Update https://cliqdigital.com/campaign
Slide 10: Business Model | Profitability Index
10 BUSINESS MODEL | PROFITABILITY INDEX • Measuring the profitability of marketing campaigns EXAMPLE • Customer acquisition cost (CAC) Profitability ARPU (N6M) €75 and average revenue per user = = 1.5x (ARPU) can differ depending on Index CAC €50 country, timing, campaign etc. • Our Business Intelli
Slide 11: Business Model | Revenue Streams
11 BUSINESS MODEL | REVENUE STREAMS 1. By service 2. By region • The membership-based service offers two product • U.S: 45% sales growth in FY mainly due to an lines: expanded content offering as well as larger and more effective marketing campaigns, especially promoting (1) multi-content portals mu
Slide 12: Business Model | Key Differentiators
12 BUSINESS MODEL | KEY DIFFERENTIATORS Positioning Content • Multi-content portals • Licensed, not owned addressing the mass • More local than global focus market with 1 portal • Content cost is either a fixed for 5 categories amount, revenue-based or • Single-content portals pay-per-use addressing
Slide 13: Growth Drivers
13 GROWTH DRIVERS Market Development Business Development Strong market growth for streaming More marketing by own media buying team entertainment services Growing demand for affordable Improving and adding content, such as streaming services podcasts and more kids’ content New target audiences due
Slide 14: 2. Financials
2. FINANCIALS
Slide 15: FY 2021 | Revenue
15 FY 2021 | REVENUE In millions of € FY 2020 FY 2021 ∆ 4Q 2020 4Q 2021 ∆ Revenue 107.0 150.0 +40% 30.1 46.8 +55% Of which generated by • Multi-content 63.8 107.9 +69% 20.1 35.2 +75% • Single-content 36.2 31.3 -14% 8.2 8.3 +1% • Ad-funded digital marketing services 6.9 10.7 +54% 1.8 3.3 +82% Geograp
Slide 16: FY 2021 | Earnings
16 FY 2021 | EARNINGS In millions of € FY 2020 FY 2021 ∆ 4Q 2020 4Q 2021 ∆ EBITDA 15.9 27.2 +70% 5.1 8.2 +62% EBITDA margin +15% +18% +17% +18% EBIT 15.2 26.3 +73% 4.9 8.2 +67% EBIT margin +14% +18% +16% +17% Profit for the year 10.4 18.2 +75% 3.2 5.9 +88% EPS (basic) 1.16 2.74 +163% 0.34 0.90 +163%
Slide 17: Profitable Growth | €1.10 DPS Proposed
17 PROFITABLE GROWTH | €1.10 DPS PROPOSED in millions of € Marketing spend Revenue EBITDA EBITDA margin % 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 50 46.8 40.0 40 33.1 29.7 30.1 30.1 30 26.9 20.2 18.2 20 13.8 14.5 16.8 19% 19% 18% 10 11% 15% 15% 17% 18% 11% 11% 3% 10%
Slide 18: FY 2021 | Cash Position & Cash Flow
18 FY 2021 | CASH POSITION & CASH FLOW in millions of € 31/12/2020 31/12/2021 Cash and cash equivalents 4.9 7.3 Bank borrowings -4.0 -5.0 Net cash position 0.9 2.3 2020 2021 Cash flow from operating activities 14.8 20.8 Cash flow from investing activities -0.7 -3.3 Operating free cash flow 14.1 17.5
Slide 19: FY 2021 | Balance Sheet
19 FY 2021 | BALANCE SHEET in millions of € ASSETS EQUITY & LIABILITIES 2020 2021 2020 2021 Goodwill 47.8 48.2 Equity 55.6 59.6 (In)tangible & financial assets 3.0 7.9 Deferred tax liabilities 1.7 4.1 Contract costs 7.5 17.1 Bank borrowings 3.8 5.0 Deferred tax assets 4.1 2.6 Other financial liabili
Slide 20: FY 2021 | Marketing Costs
20 FY 2021 | MARKETING COSTS In millions of € 2020 2021 Y/Y ∆ Marketing spend 34.2 54.4 20.2 Capitalised marketing spend -30.5 -47.0 -16.5 Amortised contract costs 28.7 37.5 8.8 Marketing costs 32.4 44.9 12.5 • In accordance with IFRS 15, CLIQ Digital capitalises its marketing spend that is directly
Slide 21: 3. Outlook
3, OUTLOOK “ we CLIC
Slide 22: More Marketing, More Members, More Revenue
22 MORE MARKETING, MORE MEMBERS, MORE REVENUE Marketing spend: Lifetime Value of Customer Base via own media buying team Number of members x via affiliate partners Remaining lifetime value per member 120 Profitability Index (previously CLIQ Factor) >€110m >€70m 100 €54m +74% 80 €34m €87m 1.68x 60 €2
Slide 23: Outlook | Organic Growth
23 OUTLOOK | ORGANIC GROWTH • Grow CLIQ’s multi-content strategy with performance marketing as one of the key and most efficient drivers • Improve visibility and transparency to the market with brand marketing supported by traditional advertising campaigns such as TV commercials In millions of € 201
Slide 24: Q&A
24 Q&A Ben Bos Management Board Member 3. Outlook
Slide 25: Disclaimer
25 DISCLAIMER This presentation is for information purposes only and does not constitutes a public offer to buy or sell or a public call for the purchase or sale of CLIQ Digital AG securities. Neither this presentation nor any other content of this presentation constitute the basis for the conclusio