Slide 1: Capital Market Day: Future plc
Capital Market Day Future plc Reaching 1 in 2 01 Grow relevant and valuable audiences 02 Diversify and grow monetisation 1 14 September 2022
Slide 2: Speakers
Speakers Zillah Byng-Thorne Stuart Forrest Sophie Wybrew-Bond Hillary Kerr CEO Audience Operations SVP, Lifestyle, Knowledge Co-founder & CCO, Joined in 2013 Director & News Who What Wear Joined in 2021 Joined in 2019 Joined in 2022 through acquisition Shayna Kossove Kevin Li-Ying Jason MacLellan Pe
Slide 3: Agenda
Agenda 14.00 Introduction and strategy recap 16.05 Powered by data, enabled by technology Zillah Byng-Thorne (CEO) 20 min Kevin Li Ying (CTO), Jason MacLellan (SVP Engineering) 40 min 14.20 The Women’s Lifestyle opportunity Sophie Wybrew-Bond (SVP, Lifestyle, Knowledge & News) 20 min 16.45 An agile
Slide 4: Introduction and Strategy Recap
Zillah Byng-Thorne (CEO) INTRODUCTION AND STRATEGY RECAP 4
Slide 5: Our Purpose
Our Purpose “We change people’s lives through sharing our knowledge and expertise with others, making it easy and fun for them to do what they want.” 5
Slide 6: Who we are
Who we are Future is a global platform for intent-led specialist media underpinned by technology, enabled by data; with diversified revenue streams We have diversified content verticals We have 3 main monetisation frameworks HY 2022 Revenue mix We reach 1 in 3 in the UK and US*. With 306m Advertising
Slide 7: The journey
The journey 2014 2022 Growth Revenue £66.0m £819.5m* x12 AOP £(8.0)m £268.6m* >+3,000% Margin (12)% 33%* +45ppt EPS (3.2)p 158.6p* x50 # content verticals 6 16 x3 # brands c.30 c.250 x8 # online users 57m** 306m*** x5 # employees c.600 c. 3,000 x5 7 *Based on company’s compiled consensus **Includes
Slide 8: Future is rapidly establishing itself as a digital content property in the US
Future is rapidly establishing itself as a digital content property in the US 8 Unique users Source: ComScore MMX, multi-platform, Total Audience April 2022, includes Who What Wear - US only
Slide 9: A proven strategy
A proven strategy OBJECTIVES ENABLERS PILLARS SUSTAINABLE ORGANIC GROWTH Expert content THE PLATFORM Grow relevant and EFFECT valuable audiences VALUE-CREATING M&A Operating model Diversify and grow monetisation Proprietary technology 9 OPERATING AS A RESPONSIBLE BUSINESS DRIVEN BY PURPOSE, VALUE AN
Slide 10: Strategic objectives
Strategic objectives OBJECTIVES Grow relevant and valuable audiences Scale brings leadership Focused on audience with specific characteristics: specialists and with intent Scalability of our business model Diversify and grow monetisation Leadership brings premiumisation Intent drives second monetisat
Slide 11: Enablers
Enablers ENABLERS Expert content Operating model Proprietary technology THE WOMEN’S LIFESTYLE KNOWING OUR VALUABLE POWERED BY TECHNOLOGY OPPORTUNITY AUDIENCE Kevin Sophie Stuart THE WHO WHAT WEAR AN AGILE BUSINESS MODEL, ENABLED BY DATA ACQUISITION WITH HIGH CASH CONVERSION Jason Hillary & Shayna Pe
Slide 12: 3 core pillars support the execution of the proven strategy
3 core pillars support the execution of the proven strategy SUSTAINABLE ORGANIC GROWTH THE PLATFORM EFFECT VALUE-CREATING M&A 12
Slide 13: Sustainable organic growth
Sustainable organic growth INPUTS Positive +17% Drive AUDIENCE ADJUSTED Average organic* ● SEO centre of Results in REVENUE MIX ORGANIC online users growth GROWTH & IMPROVED REVENUE excellence & OPERATING LEADERSHIP GROWTH +25% ● Expert content MONETISATION OPERATING PROFIT POSITION ● Data LEVERAGE
Slide 14: Accelerating the execution of the strategy through M&A
CREATING VALUE THROUGH ACQUISITIONS Accelerating the execution of the strategy through M&A 01 ● Accelerates the strategy, unique value creation ● Benchmark against organic route STRATEGIC RATIONALE 02 ● Focus on returns and value creation ● Multiples reflect the nature of the asset, hence wide FINANC
Slide 15: M&A areas of interest
CREATING VALUE THROUGH ACQUISITIONS Accelerating the execution of the strategy through M&A - areas of interest AREAS OF INTEREST AREAS OF INTEREST AREAS OF INTEREST “ENHANCE EXISTING” “GROW NEW” CONTENT Audience characteristics: Homes Parenting asks a lot of questions and has high-intent Wealth Heal
Slide 16: The platform multiplier effect
PLATFORM EFFECT The platform multiplier effect The platform multiplier effect is Proprietary more than operating leverage Technology and growing the bottom line, it is about the multiplier effect of the organic and inorganic capabilities that deliver unique The value creation, both top and Platform
Slide 17: Ambition: Reaching 1 in 2 in the US
Ambition Reaching 1 in 2 in the US 17
Slide 18: Grow audience/verticals
GROW AUDIENCE/ VERTICALS With further opportunities across verticals and leadership in US ● STEP 1: Grow audience ● STEP 2: Once sufficient scale, add direct sales team ● STEP 3: Drive premium advertising and leverage the platform CONTENT VERTICAL % GROUP (ONLINE ONLINE USERS** COMSCORE*** AMBITION M
Slide 19: Multiple routes to reach 1 in 2 in the US
Multiple routes to reach 1 in 2 in the US* Market leadership Tech Fashion & Gaming Beauty Homes Wealth Monetisation optimisation 19 Number of users Potential users if top 3 *Comscore MMX Multi Platform Total Audience , June 2022 US
Slide 20: Strategic verticals attractiveness
Strategic verticals attractiveness Advertising Further yield opportunity in newer verticals: with leadership comes premium advertising revenue Tech yield FY 20-22 +30% Who What Wear Revenue Per User (RPU) is ~3x greater than Marie Claire US Doubling Revenue Growing online Per User (RPU) users Affilia
Slide 21: The Women's Lifestyle opportunity
Sophie Wybrew-Bond SVP, Lifestyle, Knowledge & News The Women’s Lifestyle opportunity 21
Slide 22: Fastest Growing Women's Lifestyle Publisher
Women’s Lifestyle Growth - Scale & Strength Fastest Growing Women’s Women’s lifestyle online Lifestyle Publisher users* grew Since 2019, our Women’s Lifestyle vertical has grown at an exponential rate due to Future’s acquisitive strategy combined with our organic growth, and this is only set to expa
Slide 23: The Appeal of the Women's Lifestyle Market
The Appeal of the Women’s Lifestyle Market Women are active Media brands are critically information seekers and important trusted sources drive 70-80% of purchase Media brands remain essential decisions* intermediaries, helping women navigate, providing inspiration and trusted Wanting inspiration, a
Slide 24: Women's Lifestyle Market: long term growth drivers
The Appeal of the Women’s Lifestyle Market - long term growth drivers Product categories of Beauty and Apparel/Fashion are in high online growth A proven user experience, with more mobile online shopping: Tried & tested has moved from the ‘beauty counter’ to online trusted sources - with an easy pat
Slide 25: Future's Women's Lifestyle Brands, covering all age groups
Future’s Women’s Lifestyle Brands, covering all age groups Each of our Women’s brands connects with valuable target groups, engaging their audiences through helpful and inspiring content. Our audiences look to our expert content to inspire, entertain, and advise them at every life stage. Future Wome
Slide 26: A proven playbook deployed to win in Women's lifestyle
A proven playbook deployed to win in Women’s lifestyle Future is well-set to take share in the high-growth Beauty and Fashion category The characteristics of the high-growth Women’s Lifestyle market shares many characteristics with Tech & Gaming Intent-led audience, looking for trusted advice High d
Slide 27: Expertise and scale to drive growth
Expertise and scale to drive growth Who What Wear brings direct sales capabilities and affiliate expertise with a purchase every 30 seconds This creates a multiplier effect when applied to the scale of the Group Women’s lifestyle vertical Growing the audience to achieve leadership Advertising positio
Slide 28: Accelerating the strategy: Who What Wear acquisition
Hillary Kerr (co-founder & CEO) Shayna Kosssove (founding member, CRO) Accelerating the strategy: Who What Wear acquisition 28
Slide 29: Making Style Accessible to All
MAKING STYLE ACCESSIBLE TO ALL 29
Slide 30: Who What Wear
WHO WHAT WEAR STARTS WITH WE ARE A COMMUNITY OF 23M* FASHION AND BEAUTY LOVERS WHO SEEK AN AUTHENTIC EDITORIAL POINT OF VIEW TO INSPIRE US ON WHAT TO BUY AND HOW TO WEAR IT 30 *Source: Google Analytics for Global UVS + Newsletter Subs + Total Social Following (July 2022)
Slide 31: Every 30 seconds
WHO WHAT WEAR EVERY 30 SECONDS A WHO WHAT WEAR READER SHOPS A FASHION OR BEAUTY PRODUCT RECOMMENDED BY OUR EDITORS OVER 3,000 PRODUCTS A DAY, AND COUNTING 31 Source: Who What Wear affiliate data FY 2021; U.S. only, based on gross units sold; total minutes and days in a calendar year
Slide 32: Constantly evolving the way people consume content and commerce
WHO WHAT WEAR CONSTANTLY EVOLVING THE WAY PEOPLE CONSUME CONTENT AND COMMERCE INNOVATORS IN MULTI-PLATFORM COMMERCE FOR 15 YEARS AND COUNTING INSTAGRAM • TIKTOK • FACEBOOK • PINTEREST • EDITORIAL • BRANDED CONTENT • CELEBRITY EXCLUSIVES • VIDEO • INFLUENCER • DIGITAL ISSUES PODCAST • LIVESTREAM VIDE
Slide 33: The Founding Story
THE FOUNDING STORY WHO WHAT WEAR IN 2006: INSPIRE + INFORM= EMPOWER TO MAKE A PURCHASE WITH 100% SHOPPABLE CONTENT AND THIS WAS JUST THE BEGINNING. WE HAD AN AMBITIOUS ROADMAP FOR WHO WHAT WEAR FROM LAUNCH, WITH PLANNED BRAND EXTENSIONS, INCLUDING: BOOKS, PRODUCTS, EVENTS, COLLABORATIONS, AND MORE.
Slide 34: Make style accessible to everyone
MAKE STYLE ACCESSIBLE TO EVERYONE WHO WHAT WEAR IN 2022: REPRESENTATION RESPONSIVENESS REAL-TIME DATA ANALYSIS 34
Slide 35: Our site is driven by curation not clickbait
AN AUDIENCE BUILT ON AUTHENTICITY OUR SITE IS DRIVEN BY CURATION NOT CLICKBAIT 98% OF THE TOP SEARCH TERMS TO WHO WHAT WEAR ARE FASHION AND BEAUTY-RELATED 35 Source: SEMrush.com, July 2022; US only; Mobile; Top 100 Traffic-Driving Search Terms for WhoWhatWear.com
Slide 36: Our community continues to grow
OUR COMMUNITY CONTINUES TO GROW 23M1 MONTHLY AUDIENCE ACROSS WHO WHAT WEAR #1 INDEX (262)2 $132K3 F18-34 #1 FOR MEDIAN HHI 87%/13%4 40%5 WOMEN/MEN BIPOC* & HISPANIC 2.5x more likely to reach millennial women than our competitors Source 1: Google Analytics for Global UVS + Newsletter Subs + Total Soc
Slide 37: Who What Wear reaches a new generation of women
WHO WHAT WEAR REACHES A NEW GENERATION OF WOMEN A BOSS A DECISION MAKER A MOM EDUCATED 29% OF WHO WHAT WEAR #1 INDEX FOR THE HEAD 57% OF WHO WHAT WEAR #1 INDEX FOR HAVING READERS CLASSIFY AS A OF HOUSEHOLD READERS ARE PARENTS 3 A HIGHER DEGREE “BOSS LADY”1 (INDEX 127)2 (INDEX 165)4 Source 1: Who Wha
Slide 38: How Who What Wear wins
HOW WHO WHAT WEAR WINS FOCUSED, SHOPPABLE CONTENT + AUDIENCE PRIMED TO SHOP + BRAND-SAFE ENVIRONMENT = THE MOST EFFECTIVE BUY FOR COMMERCIAL PARTNERS BRANDED CONTENT EXPERTISE AFFILIATE REVENUE 38
Slide 39: The future of Who What Wear: Beauty
THE FUTURE OF WHO WHAT WEAR: BEAUTY SOCIAL-FIRST, SHOPPING-CENTRIC BEAUTY PRODUCT REVIEWS EDITOR-LED, FIRST-PERSON REVIEWS OF THE BEST BEAUTY PRODUCTS. POWERED BY FUTURE’S PEERLESS SEARCH STRATEGY. AMPLIFIED BY WHO WHAT WEAR’S HIGHLY ENGAGED SOCIAL COMMUNITY. 39
Slide 40: Who What Wear and the fashion landscape
WHO WHAT WEAR AND THE FASHION LANDSCAPE MONETISATION OF OUR BRAND 40
Slide 41: The Who What Wear media revenue team
THE WHO WHAT WEAR MEDIA REVENUE TEAM ONE UNIFIED PRE AND POST-SALE TEAM 48 MEMBERS IN NY AND LA EXPERTS IN SALES AND CLIENT SERVICES INNOVATORS IN MARKETING AND BRANDED CONTENT PIONEERS IN INFLUENCER MARKETING STRONG RELATIONSHIPS IN FASHION, RETAIL, LUXURY, BEAUTY 4 SENIOR SALES TEAM LEADS, EACH WI
Slide 42: Who What Wear is a leader in fashion and beauty
WHO WHAT WEAR IS A LEADER IN FASHION AND BEAUTY FASHION + SHOPPING BRANDED BEAUTY CONTENT #1 index 350+ $63.5M+ F18+ WHO FALL IN THE IAB ORIGINAL PIECES OF IN REFERRED SALES BRANDED CONTENT DIGITAL SEGMENT FOR DRIVEN BY OUR EDITORIAL IN 2021 STYLE & FASHION - ALL CONTENT IN 2021 (INDEX 249) 42 Sourc
Slide 43: Who What Wear is a leader in fashion and beauty
WHO WHAT WEAR IS A LEADER IN FASHION AND BEAUTY SOCIAL INFLUENCER MEDIA MARKETING PODCASTS #1 12,000+ 2 weekly IN OUR COMPETITIVE SET INSIDER-ACCESS TO THE ORIGINAL PODCASTS THAT FOR INSTAGRAM MOST DIVERSE SET OF ARE DIRECTLY MONETISED FOLLOWERS AND INFLUENCER TALENT AT A PREMIUM BY OUR INTERACTION
Slide 44: An audience that sets us apart
IN A CROWDED MARKETPLACE: AN AUDIENCE THAT SETS US APART Online Shopping Influencer (250 Index) WHO WHAT WEAR (267 INDEX) A COMMUNITY OF THE MOST INFLUENTIAL WITH THE HIGHEST SPENDING POWER (200 Index) VOGUE PUREWOW ELLE BUSTLE INSTYLE (150 Index) Affluence (100 Index) (250 Index) Affluence (300 Inde
Slide 45: Awareness on its own is not enough
PERFORMANCE THAT SETS US APART AWARENESS ON ITS OWN IS NOT ENOUGH TRANSFORMING THE TRADITIONAL SALES FUNNEL INTO A CYCLE 75% of Who What Wear visitors have a high interest in fashion* vs.48% of non-Who What Wear 80% of Who What Wear readers visitors use social media to post things they like vs. 71%
Slide 46: The importance of e-commerce innovation
THE IMPORTANCE OF E-COMMERCE INNOVATION “The global social commerce industry is expected to grow three times as fast as traditional e-commerce, from $492 billion in 2021 to $1.2 trillion by 2025, driven by Gen Z and Millennial consumers, who will account for 62% of social commerce spend by 2025.” -2
Slide 47: Sperry Footwear branded content case study
WHO WHAT WEAR CASE STUDY: SPERRY FOOTWEAR “ALL THE WAYS TO WEAR” BRANDED CONTENT EDITOR AND NEWSLETTER AND INFLUENCER STYLING HOMEPAGE PROMOTION
Slide 48: Sperry Footwear branded content: additional media
WHO WHAT WEAR CASE STUDY: SPERRY FOOTWEAR “ALL THE WAYS TO WEAR” BRANDED CONTENT ADDITIONAL MEDIA Cross-platform banners aligned with relevant content across Who What Wear and Apple News Shopping placements on Who What Wear site and newsletter TIKTOK INSTAGRAM AND FACEBOOK PROMOTIONAL ADS EXTENSION
Slide 49: Sperry Footwear influencer styling event
WHO WHAT WEAR CASE STUDY: SPERRY FOOTWEAR “ALL THE WAYS TO WEAR” INFLUENCER STYLING EVENT
Slide 50: Sperry Footwear social follower comments
WHO WHAT WEAR CASE STUDY: SPERRY FOOTWEAR “ALL THE WAYS TO WEAR” SOCIAL FOLLOWER COMMENTS Sperrys has sneakies!!! So cute omg. Always low key wanted the boat shoes but CUTE!!! They look so comfy 😍 was never on a boat lmao. Love these. I need a pair!!! 😍 Someone had just asked if we are still…
Slide 51: Direct sales capabilities and strong client relationships
WHO WHAT WEAR BRINGS DIRECT SALES CAPABILITIES AND STRONG CLIENT RELATIONSHIPS Key measures prove our strength as a team Trusted relationships Innovative Ideas Experience in execution Performance-driven results +110% 93% +45% 2019 2022 YTD WHO WHAT WEAR ADVERTISER CORE ACCOUNT REVENUE RETURN RATE To
Slide 52: Growth opportunities with new audiences
GROWTH OPPORTUNITIES WITH NEW AUDIENCES Managerial / Executive Position (150 Index) MARIE CLAIRE (255 INDEX) REFINERY 29 BUSTLE ELLE (125 Index) PUREWOW POPSUGAR VOGUE (100 Index) (150 Index) (200 Index) Affluence (250 Index) INSTYLE ALLURE (75 Index) HARPER’S BAZAAR Affluence Index (Marie Claire 255
Slide 53: Future means fashion and beauty for every woman
FUTURE MEANS FASHION AND BEAUTY FOR EVERY WOMAN • CONTENT + AUDIENCE + EXPERTISE IN AD SALES Unique premium Fashion, Beauty and Women’s lifestyle sites that offer this level of editorial credibility, audience diversity and scale - combined with our proven expertise and success in direct advertising
Slide 54: So much room to grow
SO MUCH ROOM TO GROW FUTURE MEANS WE DELIVER MORE INNOVATION BIGGER BUDGETS SEO expertise More dollars from existing clients New ad products Retention and Growth of Core accounts Proprietary technology Data solutions NEW CLIENTS In new categories RESOURCES (like Beauty, Homes and Finance) More conte
Slide 55: Q&A
Q&A 55
Slide 56: Break
BREAK 56
Slide 57: Knowing our valuable audiences
Stuart Forrest (Audience Operations Director) Knowing our valuable audiences 57
Slide 58: We reach large audiences across diversified verticals
We reach large audiences across diversified verticals Our content reaches* more than 1 in 3 people online in the US and we’re on track to reach 1 in 2 US consumers Our Vertical Markets at Future 58 *Source: comScore Media Metrix Demographic Profile, July 2022 - Desktop Age 2+ and Total Mobile 18+
Slide 59: Future audience: reaching everyone, but focussed on the right one
Reaching everyone, but focussed on the Right One Everyone Horizon 1-2 The power of the Future network. Grow our audience reach such that combined across all Future brands we High intent task connect with 1 in 2 people a month in our core markets focussed users FUTURE AUDIENCE The right one SCALE Hor
Slide 60: Expansion of Audience Centre of Excellence
Embedding best practice and leveraging scale Expansion of Audience Centre of Excellence Continued investment in horizontal audience capability Embed audience best practice Platform effect drives operating Quickly scale acquisition derived across enlarged portfolio leverage capability Recent organic
Slide 61: Audience Centre of Excellence: expertise embedded across the organisation
Audience Centre of Excellence - expertise embedded across the organisation KEY FUNCTIONS CONTENT ENGINEERING MARKETING COMMERCIAL PLATFORM PARTNERS AUDIENCE Content strategy for ✔ ✔ ✔ ✔ DEVELOPMENT search & social media 1. Audience team plays a Capability Existing crucial part in cross discipline ex
Slide 62: Decreasing reliance on organic search, growing diversification of audience
Decreasing reliance on organic search, and growing diversification of audience Online users have grown 1.7x whilst other Giving us a greater diversification (non google SEO) traffic sources have of traffic sources increased by 10ppt 57% organic search traffic* 67% organic 306m online users** search traffi
Slide 63: Competitive advantage in search from platform leverage
Leveraging our platform - bringing SEO (search engine optimisation) improvements rapidly at scale Competitive advantage in search from platform leverage Google policy changes have in general rewarded Future Continuous investments in content creation Enabled by our fast, flexible & web friendly publis
Slide 64: Podium strategy ensures maximum ROI on content investments
Leveraging our brands - podium strategy ensures that we can maximise search traffic Podium strategy We dominated search with multiple brands and ensures maximum ROI user intents for last on content investments week’s Apple launch with US launch day traffic to our content was up 37% Podium strategy tac
Slide 65: Data unlocks competitive advantage
Data unlocks competitive advantage Forecasting & Reporting Machine learning driven forecast brings efficiency & clarity Editorial Productivity Content strategy is driven by search insights Real time insights Proprietary tools to alert on “news box” instances for key terms in real time Increasing Enga
Slide 66: Audience is a critical lever for post-acquisition growth
Post Migration growth - Applying our audience operating model drives substantial growth Audience is a critical lever for post-acquisition growth Safe, fast, brand friendly website platform (Vanilla) Technical SEO expertise ensures optimal search exposure Data driven approach to content strategy to u
Slide 67: Acquisitions bring new capabilities to a strong audience platform
Looking Forward - Acquisitions bring new capabilities to a strong audience platform Substantial traffic from email and successfully delivers highly valuable For Future Audience means: transactional behaviours in fashion from daily sends to an in-market audience We target everyone & the right one Embe
Slide 68: Enabled by technology
Kevin Li Ying (CTO) Jason MacLellan (SVP, Engineering) Enabled by technology 68
Slide 69: An agile, lean, robust, scalable and proprietary tech stack
Overall an agile, lean, robust, scalable and proprietary tech stack 69
Slide 70: Why is our tech stack important?
Why is our tech stack important? Our tech stack allows: Our websites to exist and grow - Our people to easily move around Our business to further diversify sites scalable brands and roles - efficient and revenue streams - scalable flexible Our organisation to operate efficiently Overall an agile, lean,
Slide 71: Our tech stack
Our tech stack Fortunate to have an end to end capability which makes it unique in our media industry Vanilla is our single modular web platform, it has a Assets Websites Monetisation single content management system Hawk is our our eCommerce service that enables the Freelance Staff monetisation of
Slide 72: Tech stack strategy aligned with the business
Tech stack strategy aligned with the business Platform Effect Protect Realisation of platform Invest in the health of the benefits through deployments platform to maximise of platform agnostic resilience, availability, capabilities - Hawk as a service scalability, maintainability and and Hybrid as a
Slide 73: Vanilla Web Platform Overview
Vanilla Web Platform Overview Proven web platform supporting growth of 49 core brands. A highly optimised cohesive publishing modular platform offering excellent user experiences, SEO performance and stable vehicle for Future’s, Hawk (affiliate) and Hybrid (advertising) services. ● Highly resilient ○
Slide 74: Vanilla Web Platform Acquisition positives
Vanilla Web Platform Acquisition positives Acquisitions bring more than New revenue channels just audience… Innovative approaches to previously untapped audience and revenue channels, challenging Each synergy brings hard won knowledge and internal assumptions and expanding proven innovation which ca
Slide 75: Vanilla Web Platform Innovation
Vanilla Web Platform Innovation As the platform scales the scope for applying CONTENT RECOMMENDATIONS new techniques and approaches grows and Predict the next area of interest ahead of the masses and push the same knowledge to the opportunities increase justifying the users via our machine learning
Slide 76: Adtech Hybrid
Future’s Vanilla Other Video pre-roll web platform web platforms Hybrid as a service Hybrid INDEX EXCHANGE GOOGLE AMAZON AdServer WRAPPER AD MANAGER TAM (server side) (client side) 1st party AppNexus Marie-Claire desktop article 20+ Supply Side Partners DIRECT CAMPAIGNS Just Premium PREMIUM PROGRAMM
Slide 77: Hybrid consistently delivers upside
Hybrid consistently delivers upside as we continue to protect, optimise and add new capabilities to it Continuous improvement drives cost-effectiveness Scalability Over last 3 years, the Hybrid technology stack has been massively improved: This lean solution allowed to deploy Hybrid across all legac
Slide 78: Hybrid Competitive advantage
Hybrid Competitive advantage YIELD OPTIMISATION THROUGH AD SLOT COMPETITION Increase in yield for direct deals and Why Hybrid? ● programmatic guaranteed ● Increase in CPM for open auction as a consequence of market pressure RUNS ANYWHERE SPEED TO MARKET TIME YIELD $ Plug & play “as-a-Service” archit
Slide 79: Hybrid Innovation
Hybrid Innovation Developing a console to Hybrid Launching Hybrid’s ad scout Automation of parts ad ops manual task in setup and optimisation of advertising on web pages to drive: Scout for display advertising revenue opportunity across all Future sites using data to leave no stone unturned ● Effect
Slide 80: Ecomtech Hawk
Ecomtech Hawk Dynamic robust technology to deliver best, cheapest product offer recommendation. Up to 4,300+ 3,500 27 ~2,800 Active affiliate merchants API or asset requests per Territories covered Product updates per second second Entertainment Women’s Lifestyle Homes cinemablend.com marieclaire.com
Slide 81: Hawk Competitive Advantage: Why Hawk?
Hawk Competitive Advantage Why Hawk? ROBUST MATCHING ALGORITHM PROVEN TAILORED USER EXPERIENCE Which finds the best deals for specific models Smart labeling system, so that users can narrow (such as Dell XPS 13) as well as categories down their search based on specific criteria (Dresses, …) (screen siz
Slide 82: Hawk Innovation
Hawk Innovation ADVANCED MERCHANT PREFERENCE EDITORIAL EFFICIENCY THROUGH SMART DISCOUNTS AND VOUCHERS SCORE SYSTEM DYNAMIC SPECS/LABELS In 2022, we enriched Hawk with discount Merchant Preference Scoring, per category Hawk combines the knowledge of millions of and voucher data, which we are rolling
Slide 83: Emailtech - SmartBrief
Emailtech - SmartBrief End-to-end platform for email newsletter publishing and monetising 1.8bn 337 Emails sent in last 12 Newsletters in total months 8m 50 Subscribers and growing… Newsletters launched in last 12 months +48% B2C 3rd party ad network 4.5x Number of B2C publication commercial revenue
Slide 84: SmartBrief Competitive advantage
SmartBrief Competitive advantage RESILIENT & SCALABLE FLEXIBLE ADVERTISING CAPABILITY Unlike third-party email service providers - ESPs, the platform can scale to “Pace” ad serving across a set timeframe for yield optimization. This meet the needs of the business due to agile dev and without signific
Slide 85: Comparison Pre vs Post Migration onto SmartBrief
SmartBrief - in action Comparison Pre vs Post Migration onto SmartBrief 100% ↑2.5x Kiplinger dedicated send - Re-platforming doubled Increase in ad CTR (click BEFORE migration to SmartBrief the marketable audience through rate) as a result for Kiplinger dedicated sends by introducing vertical newsle
Slide 86: Looking Forward
Looking Forward More intelligent tech stack by utilising all our data points Personalisation : Subliminal recommendations to increase retention and engagement and build loyal communities Content forecasting: Predicting/ anticipating demand through data analysis near real time Our agile, lean, robust
Slide 87: Powered by data
Jason MacLellan (SVP, Engineering) Powered by data 87
Slide 88: The data landscape & ecosystem - Why Aperture exists?
The data landscape & ecosystem - Why Aperture exists? Maximise the value of our 1st party data We are in control of our data ● 1st party ● Permissioned ● Protect our users privacy Valuable due to the nature of our ● Future proof audience: specialist, passionate and with intent We understand our audi
Slide 89: Data is at the heart of what we do
Why Aperture exists? Data is at the heart of what we do c500m sessions per month across 100+ brands Billions of data points collected every month from articles consumed, products clicked, email interactions, events and subscriptions Aperture is our end-to-end data platform which enables the processi
Slide 90: How does Aperture work?
How does Aperture work? Sources Platform Activation Audience Business Clients Customer Editorial Future’s data sources Aperture Data platform Aperture Data platform Website data Search (GA) performance By article to By customer drive to create Ads data Affiliate click & audience - conversion advertis
Slide 91: Driving revenue per session growth through improved advertising sales and yield
Driving revenue per session growth through Improved advertising sales and yield Sources Platform Activation Audience Business Clients Customer Editorial Future’s data sources Aperture Data platform Aperture Data platform Website data Search (GA) performance By article to By customer drive to create
Slide 92: Improved advertising sales and yield
Driving revenue per session growth through Improved advertising sales and yield Aperture is driving yield increases by processing, analysing and segmenting all of our first-party data, in real time and making it accessible to advertisers for targeting The solution is future-proofed and allows us to t
Slide 93: Who What Wear audience will add significant value to our targeting
Driving revenue per session growth through Improved advertising sales and yield L’Oréal Prada Holiday makers on women’s lifestyle brands/content (1.5m*) Valentines day campaign targeting gift givers (1.3m*) WhoWhatWear audience will add significant value to our targeting As we grow Women’s lifestyle
Slide 94: Driving audience growth through Smart Discovery
Driving audience growth through Smart Discovery Sources Platform Activation Audience Business Clients Customer Editorial Future’s data sources Aperture Data platform Aperture Data platform Website data Search (GA) performance By article to By customer drive to create Ads data Affiliate click & audien
Slide 95: Smart Discovery: content at the heart of the business model
Driving audience growth through Smart Discovery Content is at the heart of the Future business model. Macro Trends Align with brand e.g. Technology and audience One the most impactful decisions we make in Future is what to write about Macro Trends and this decision is made 1,000s of e.g. Alexa trick
Slide 96: Smart Discovery launched across TV & Entertainment brands
Driving audience growth through Smart Discovery We launched Smart Discovery across TV & Entertainment brands with strong results of an average of 2x better performance Increase in page views per article between a SmartDiscovery and a baseline article 4.7x Brand A A TV & Entertainment brand that is f
Slide 97: Smart Discovery: Squid Game missed trend
Driving audience growth through Smart Discovery Here we see an example of an unanticipated trend (Squid Game) where we failed to capitalise fully on the opportunity (normalised 0 - 100 scale) Audience Reach Google trends Social Media Future brands Missed the peak of the trend across social media and
Slide 98: Smart Discovery: Girl in the Picture trend
Driving audience growth through Smart Discovery Example from the recent pilot, identifying the trend (Girl in the Picture) earlier meant we published earlier and maximised the opportunity around the peak of interest SMART DISCOVERY ALERT Google trends Social Media Future brands Smart Discovery alert
Slide 99: This is only the start of what can be achieved
Driving audience growth through Smart Discovery 01 Expand roll out to all brands covering TV & Ents This is the only the start of 02 Enhance the model - continuous optimisation to improve recommendations what can be achieved with 03 Roll out to other domains: Sport, Gaming, Food & drink, Fashion thi
Slide 100: What's next - Driving engagement through Next Best Action
What’s next - Driving engagement through Next Best Action Sources Platform Activation Audience Business Clients Customer Editorial Future’s data sources Aperture Data platform Aperture Data platform Website data Search (GA) performance By article to By customer drive to create Ads data Affiliate clic
Slide 101: Aperture is an evolving product with further opportunities ahead
Aperture is an evolving product with further opportunities ahead Aperture is Future’s scalable proprietary end to end Aperture is the Vanilla for our data unlocking the data platform value of our audiences across the portfolio Full control over our data which is increasingly It is agile, enabling co
Slide 102: An agile business model with high cash conversion
Penny Ladkin-Brand (CFO) An agile business model with high cash conversion 102
Slide 103: Strong financial characteristics
Strong financial characteristics PILLARS FINANCIAL CHARACTERISTICS +66% Adjusted* EPS CAGR (HY18-HY22) SUSTAINABLE Sustainable +11% average organic** revenue growth ORGANIC GROWTH organic growth (FY18-HY22) +190bps in adjusted* operating margin to 33% Operating margin (HY18-HY22) growth +106% AOP* CA
Slide 104: Long term organic growth opportunity
SUSTAINABLE ORGANIC GROWTH Long term organic growth opportunity +17% Average organic* online Through time growth in organic users has translated into users** growth organic revenue growth (HY 2018 -2022) +25% Average organic* Media We continue to see addressable market opportunity to continue this t
Slide 105: Operating margin growth: the platform effect
OPERATING MARGIN GROWTH Continuous improvement in profitability as we scale The platform effect is more than operating leverage and growing the bottom line, it is about the multiplier effect of the organic and inorganic capabilities that deliver unique value creation, both top and bottom lines. REVEN
Slide 106: Continuous improvement in profitability as we scale
OPERATING MARGIN GROWTH 1 Continuous improvement in profitability as we scale £m Media Magazines Total Revenue 258.6 145.7 404.3 2 Cost of sales 50.4 51.1 101.5 The group benefits from a favourable GC margin 81% 65% 75% revenue mix driven by: Sales, marketing and editorial 3 (106.5) ● Faster revenue g
Slide 107: An agile business model drives flexible cost base
OPERATING MARGIN GROWTH An agile business model drives flexible cost base with an agile and proactive approach Costs reported in cost of sales* directly Sales, marketing and editorial costs* linked to revenue opportunities Magazine production Sales Magazine distribution Marketing Marketing Editorial
Slide 108: Central overhead costs
OPERATING MARGIN GROWTH An agile business model drives flexible cost base - Central overhead costs Total overhead costs HY 2022 £51.1m Fixed 13% Semi to fully variable of revenue 20% Of total Group costs Efficient and scalable cost base 108
Slide 109: Agile global operating model provides advantage
OPERATING MARGIN GROWTH Agile global operating model provides advantage Revenue by geography Our content follows our audiences Our teams are based around centres of excellence which allows us to build communities for talent. US HY 2022 Centralised services are located in UK affordable locations with
Slide 110: Asset light and high free cash flow conversion by design
STRONG FCF CONVERSION Asset light and high free cash flow conversion by design An asset light business Generating consistent strong free cash flow Low capital intensive with capex % sales Consistent adjusted FCF conversion of broadly stable at ~2% ~95-100% 110
Slide 111: Capital allocation and the 10/5/10 model
STRONG FCF CONVERSION ACCELERATE WITH M&A Capital allocation and the 10/5/10 model Average sustainable AOP target SUSTAINABLE ORGANIC GROWTH +10% Capital allocation priorities Consistent Adj. 1.Organic growth FCF conversion 2.M&A THE PLATFORM +5% of 95-100% EFFECT 3.Debt repayment 4.Progressive divi
Slide 112: Value creation from M&A: funding strategy
ACCELERATE WITH M&A Value creation from M&A Funding strategy ● Depends on the nature of the acquisition and its size Since 2018: ● Depends of financial markets 16 transactions conditions ● Leverage at 1.5x with ability to Total consideration £1.4bn spike to 2.0x upon completion Equity funded £0.7bn o
Slide 113: Value creation from M&A: EBITDA
ACCELERATE WITH M&A Value creation from M&A Core EBITDA £20.7m FY 2018 Adjusted EBITDA - as reported Average sustainable AOP target Acquired EBITDA £127.6m £148.3m SUSTAINABLE ORGANIC GROWTH +10% Additional value created £145.3m (organic and inorganic) THE PLATFORM FY 2022 EBITDA consensus £293.6m E
Slide 114: Summary
114 SUMMARY Zillah Byng-Thorne (CEO)
Slide 115: Reasons to believe we will be successful
Reasons to believe we will be successful ● FY 2022 continuing to add to our track record ● Proven strategy ● Supported by an efficient and agile business model ● Attractive verticals, Women’s being only one of them, similar opportunities in Homes and Wealth ● Unique audience and best positioned throu
Slide 116: Q&A
Q&A 116