Yougov Plc · LSE:YOU
Yougov — FY2018 Earnings Presentation
40 slides from Yougov's earnings presentation, Oct 9, 2018
Slide 1: Preliminary Results to 31 July 2018
Preliminary Results to 31 July 2018 Tracking well towards our five-year growth plans 9 October 2018
Slide 2: FY18 Summary
FY18 Summary Strong revenue growth of 9% (12% at constant currency) to £116.6m, significantly ahead of the global market average of 3.3% Adjusted operating profit up by 35% to £19.7m All divisions are now driving growth - Data Products & Services, and Cube-aligned Custom Research Excellent c
Slide 3: Tracking well towards our five-year growth plans
Tracking well towards our five-year growth plans £m Adjusted Operating Profit Adjusted Operating Profit Margin 25 17% 18% 16% 14% 20 14% 12% 19.7 11% 11% 12% 15 14.5 10% 8% 10 10.9 6% 8.6 7.4 4% 5 2% 0 0% FY14 FY15 FY16 FY17 FY18 3 Key five year plan growth target: 25% YOY EPS growth FY14-19
Slide 4: Proportion of revenue from Data Products & Services has grown as planned
Proportion of revenue from Data Products & Services has grown as planned Revenue Growth Early achievement of a key five-year plan objective £m Custom Reseach Data Services Data Products 140.0 In 2014 we stated that a key objective for the five years to 2019 was to increase the 120.0 proportion of re
Slide 5: Strong growth and improvement in margins across all divisions
Interim Results to 31 January 2018 Strong growth and improvement in margins across all divisions Adjusted Operating Profit Margin by Divisions Custom Research Data Services Data Products 40% 35% 38% 30% 33% 32% 29% 29% 28% 25% 27% 24% 24% 20% 19% 19% 15% 15% 10% 13% 13% 11% 5% 0% FY14 FY15 FY16 FY17
Slide 6: Financial Update
Financial Update 9 October 2018
Slide 7: Financial Highlights
Financial Highlights Year to 31 July 2018 £m Year to 31 July 2017 £m % Change Group Revenue increased by 9% Group Revenue 116.6 107.0 9% to £116.6m (12% on constant currency basis) Cost of Sales (21.5) (21.3) 1% Gross Profit Margin increased by 2% points to 82% Gross Profit 95.1 85.7 11% Adjus
Slide 8: Balance Sheet
Year to Year to 31 July 2018 31 July 2017 Balance Sheet Assets £m £m Goodwill 52.1 43.7 Other intangible assets 13.3 11.2 Receivable days down to 56 days Other non-current assets 12.6 9.8 from 58 days Total 78.0 64.7 Creditor days decreased to 21 days Current Assets from 24 day Trade and other r
Slide 9: Cash Flow
Cash Flow Year to Year to 31 July 2018 31 July 2017 £m £m Cash flow generated from operations Cash flows from operating activities of £23.6m: 119% of adjusted operating Statutory operating profit 11.8 7.6 profit Non cash movements 11.2 9.1 Increase in deferred subscriptions Net working capital m
Slide 10: Performance by Product & Service: Revenue
Performance by Product & Service: Revenue Sustained growth in Data Products & Services Year to Year to Change Change 31 July 2018 31 July 2017 at Constant Currency % £m £m % Data Products 30.4 24.1 26% 30% Data Services 29.0 23.3 24% 26% Total Data Products & Services 59.4 47.4 25% 28% Custom Resear
Slide 11: Performance Product & Service: Operating Profit
Performance Product & Service: Operating Profit Broad-based improvement in margins Year to Year to Operating Margin % % 31 July 2018 31 July 2017 Change £m £m 2018 2017 Data Products 11.7 7.0 66% 38% 29% Data Services 8.0 5.7 40% 28% 24% Total Data Products & Services 19.7 12.7 54% 33% 27% Custom Re
Slide 12: Performance by Geography: Revenue
Performance by Geography: Revenue Growing presence in Asia Pacific Change Year to 31 July 2018 Revenue Year to Year to Change at Constant 31 July 2018 31 July 2017 % Currency UK USA £m £m % Mainland Europe Middle East Asia Pacific UK 31.3 27.1 15% 15% USA 48.2 40.7 18% 24% 7% 10% 26% Mainland Europe
Slide 13: Performance by Geography: Operating Profit
Performance by Geography: Operating Profit USA profitability improves significantly with management focus on region Year to 31 Year to Operating Margin Year to 31 July 2018 Operating Profit Operating July 2018 31 July 2017 Profit Operating Operating Growth UK USA Profit Profit % 2018 2017 Mainland E
Slide 14: Operational Update
Operational Update 9 October 2018
Slide 15: Aligning and developing our infrastructure
Interim Results to 31 January 2018 Aligning and developing our infrastructure We continue to align and develop our infrastructure to support scaling and create efficiencies Coverage Continuing to increase data points in the Cube, our highly-structured, global data library Collection Broadening the m
Slide 16: Aligning and developing our infrastructure
Interim Results to 31 January 2018 Aligning and developing our infrastructure We continue to align and develop our infrastructure to support scaling and create efficiencies Efficiency Continuing shift of work to the more appropriate team; elimination of unprofitable work Operations New shared servic
Slide 17: Expanding into new markets and sectors
Expanding into new markets and sectors Three new organic operations Three strategic acquisitions A sports sponsorship research India agency with a global footprint A bolt-on acquisition to our existing Italy operation in Australia UK-based an audience conversation Spain platform for engaging with ha
Slide 18: Product & Service Update
Product & Service Update 9 October 2018
Slide 19: Revenue £m (BrandIndex)
Interim Results to 31 January 2018 Growth in period: 19% Our flagship brand intelligence 25 service 23.5 Global expansion and integration 20 with Profiles driving growth 19.7 Revenue £m Covers 37 markets worldwide; 15 Argentina, Belgium, Colombia, 14.5 Chile and Peru recently added 10 US rem
Slide 20: Revenue £m (Profiles)
Interim Results to 31 January 2018 Growth in Our ground-breaking audience 8.0 period: planning and segmentation tool 86% 7.0 Now available in 13 markets 6.9 across the UK, USA, Europe and 6.0 Asia Pacific Revenue £m 5.0 Sales driven by increased 4.0 interoperability between Profiles and BrandI
Slide 21: Revenue £m (Omnibus)
Interim Results to 31 January 2018 Growth in 30 period: 17% Online fast-turnaround service 25 Attracting more multi-national 25.6 clients, leading to more multi- 21.9 20 Revenue £m country projects 1,000+ clients worldwide 15 16.4 Market leader in UK and growing 12.6 strongly globally 10 10.
Slide 22: Operating Profit Margin (Custom Research)
Interim Results to 31 January 2018 Quantitative and qualitative research directed by our sector specialists Growth in period: Scope, scale and complexity of 59% 25% projects varies: 24% o One-off studies 20% Operating Profit Margin o Tracking studies for individual clients o Syndicated studies s
Slide 23: Strategy Update
Strategy Update 9 October 2018
Slide 24: Our Strategy
Our Strategy Create a complete connected system of research and activation Based on our three key innovations: Cube, Crunch, Direct Engineer our operations, sales and marketing around this systematic offer 24
Slide 25: A connected data system
A connected data system Single-source connected permissioned data is the key to successful activation Single-source Continuous Permissioned Activation All the variety of Follow individuals GDPR compliant; The data used to data come from through the panellists manage create targets and the same panel
Slide 26: Providing integrated, fast, practical solutions
Providing integrated, fast, practical solutions Creating an accurate, detailed ‘map’ of target groups and audiences Connecting attitudes and behaviours and showing real-time change Optimizing planning, activation, and in- campaign effectiveness measurement All within a single fully connected system
Slide 27: Engineering our operations
Engineering our operations GDPR-compliant granular Large engaged longitudinal panels permissioning through in all key global markets blockchain-enabled panelist dashboards Easy to use client dashboard for customisable syndicated data plus self-service research, activation and cloud-based analytics -
Slide 28: Our three key innovations
Our three key innovations The Cube Our connected longitudinal syndicated data library with over 200,000 variables Crunch The most advanced and easy to use cloud-based analytics platform YouGov Direct A Blockchain-enabled platform for panellist permissioning, access and payments 28
Slide 29: YouGov Direct
YouGov Direct Dashboard for Dashboard for Channel for Permissions and users to upload and clients to see what delivering payments recorded share data data (and who) is interactive through the available messages blockchain 29
Slide 30: Enables Improves Empowers
Enables Improves Empowers transformation of understanding of individuals to control the digital audiences and their data and get marketing world targeting of adverts value from it 30
Slide 31: Group Outlook
Group Outlook 9 October 2018
Slide 32: Group Outlook
Interim Results to 31 January 2018 Group Outlook Strong backlog of multi-year syndicated Data Products subscriptions New Data Product, YouGov Ratings, connects all our data to thousands of smaller brands – launching in UK in 2018 Continued revenue opportunities for our differentiated Custom Re
Slide 33: What the world thinks
—~ You What the world thinks
Slide 34: About YouGov
About YouGov 9 October 2018
Slide 35: YouGov is a global research data and analytics group
YouGov is a global research data and analytics group 35
Slide 36: YouGov's core offering of opinion data is derived from our online panel
YouGov’s core offering of opinion data is derived from our highly participative online panel of over 6 million people worldwide 36
Slide 37: YouGov has one of the world's largest international research data networks
YouGov has one of the world’s largest international research data networks 6m panellists across 42 countries 870 employees across Panellists Office Location 22 countries EMPLOYEE HEADCOUNT BY REGION Mainland Middle East UK USA Asia Pacific Europe & India 290 190 220 90 80 37
Slide 38: Our Products & Services
Our Products & Services Divisions: Data Products Data Services Custom Research Products & Services: BrandIndex* Omnibus Quantitative Profiles* Re-Contacts Qualitative Data Applications Field & Tab Trackers SportIndex Sample Only Political / MRP *BrandIndex and Profiles are increasingly sold as the c
Slide 39: YouGov's complementary suite of data products and services
YouGov’s complementary suite of data products and services can support all stages of the marketer’s workflow 39
Slide 40: What the world thinks
—~ You What the world thinks