Digitouch Spa · MIL:DGT
Digitouch Spa — FY2019 Earnings Presentation
27 slides from Digitouch Spa's earnings presentation, Mar 31, 2020
Slide 1: Conference Call: FY 2019 consolidated financial
Conference Call: FY 2019 consolidated financial 31st March 2020
Slide 2: Company Profile
01 COMPANY PROFILE 2
Slide 3: Who We Are
WHO WE ARE One of the main independent Italian player specialized in Omnichannel Marketing and Digital Transformation FROM DIGITAL MARKETING COMPANY TO FULL DIGITAL PLATFORM COMPANY INTEGRATED OFFER BORN IN 220 2007 professionals 2015 LISTED ON 2 TECNOLOGY AND E-COMMERCE, DIGITAL AND Milan OFFICES&
Slide 4: Milestones
MILESTONES From Digital Marketing Company to Full Digital Platform Company LAUNCH DigiTouch Consulting Digital Automotive Solutions PARTNERSHIP 2007 2015 Strategic- commercial 2017 2019 with IPG AQUISITION SALE AQUISITION Performedia Audiens to Bango Purple Ocean FOUNDATION FOUNDATION AQUISITION AQU
Slide 5: Target Market Value: About 6.5 Billion Euros
TARGET MARKET VALUE: ABOUT 6.5 BILLION EUROS IMMEDIATELY TARGET ITALIAN MARKET MARKET (BILLION EURO) FOR (BILLIONS EURO) 2017 2018 2019 NOTE DIGITOUCH Advertising online ▪ About 70% of the online market is concentrated 2.68 2.98 3.27 on Google, Facebook e Amazon 2.10 DIGITAL MARKETING ▪ The B2C comp
Slide 6: Covid-19 Impact
COVID-19 IMPACT The impact of Covid-19 crisis will accelerate digitalization process, not only in terms of distributions but also in terms of operative models. This will be mostly visible to some sectors (retail/financial services) but is applicable to all industries. EXPECTATIONS FOR GRUPPO DIGITOU
Slide 7: Full Digital Platform Company
FULL DIGITAL PLATFORM COMPANY The pillars of our approach Onsite/Offsite SEO International SEO Local SEO Digital PR Voice Search SEO CONSULTING Social Media CRO Video and Content Marketing TECHNOLOGY Special Projects Purple X Chatbot E-commerce PERFORMANCE Experience Design Managed Service BUSINESS
Slide 8: Our Offer in Evolution
OUR OFFER IN EVOLUTION Focus on Data-Driven Customer Experience DIGITAL MARKETING E-COMMERCE & CONTENT TECHNOLOGY & DATA ∙ Strategy ∙ E-commerce Solution ∙ Business Analytics ∙ Data Driven Media ∙ Experience Design ∙ Artificial Intelligence ∙ Performance ∙ Social Content ∙ Cyber Security ∙ Analysis
Slide 9: Partnership & Technologies
PARTNERSHIP & TECHNOLOGIES Designed to Increase competitiveness on the market STRATEGIC PARTNERSHIPS Dealer Tab Social CMS Store Locator Pac Cognitive Platform OWNED Analytics Custom CMS UX/UI development BPA Risk Management TECHNOLOGIES Gamification Purple X Test Automation Chatbot Platform iEGP® 9
Slide 10: Partner of an International Network of Agencies
PARTNER OF AN INTERNATIONAL NETWORK OF AGENCIES DigiTouch Group has tightened collaborations with independent international agencies to help the brands expand and advertise their activity abroad. The Group is able to assist national and international clients in strategies of digitalisation and marke
Slide 11: Differentiating Factors
DIFFERENTIATING FACTORS DATA APPROACH PROFITABLE 13-YEAR BUSINESS EXPERTISE AND CONSULTANCY MIX STRATEGIC PARTNERSHIPS STRONG MANAGEMENT R&D OF INNOVATIVE MULTI TECHNOLOGICAL DISCIPLINARY SOLUTIONS TEAM FOCUS ON DATA-DRIVEN CUSTOMER EXPERIENCE 11
Slide 12: Client Portfolio
CLIENT PORTFOLIO Full diversification RETAIL & E-COMMERCE FINANCE & INSURANCE TELCO, UTILITIES, SERVICES & TECH FASHION PHARMA & HEALTHCARE TRAVEL, EDUCATION & ENTERTAINMENT FOOD & BEVERAGE, CONSUMER GOODS AUTOMOTIVE 12
Slide 13: DigiTouch Financial Results 2019
02 DIGITOUCH FINANCIAL RESULTS 2019 13
Slide 14: The Group Perimeter
THE GROUP PERIMETER DigiTouch SpA }_ DigiTouch Agency 100% we _| Brand of DigiTouch SpA 100% Optimized Group Sr1 READING KEY: 00% Back Office Srl tupeacasacom LLam Digital Automotive Solutions Sri ‘Autoandplus.com ‘Unit di DigiTouch SpA DIGITAL E-COMMERCE TECHNOLOGY Equity method MARKETING & CONTENT
Slide 15: Revenues, EBITDA and Net Result Trends
Revenues, EBITDA and Net Result TRENDS 38,946 millions CAGR +21% 16,11% +12% 32,233 millions 28,887 millions TOTAL REVENUES 5,755 millions 4,902 millions +17% EBITDA 4,381 millions +12% 766 thousand NET RESULT 416 thousand +186% -36% 268 thousand FY-2017 FY-2018 FY-2019 NET FINANCIAL Debt decreased,
Slide 16: Closing FY-2019 Gruppo DigiTouch Profit & Loss
GRUPPO DIGITOUCH - RECLASSIFIED CONSOLIDATED INCOME STATEMENT CLOSING FY-2019 (million euros) FY 2019 [A] % FY 2018 [B] % Change [A]-[B] % GRUPPO DIGITOUCH Operating revenues Other revenues 35,79 1,41 91,9 3,6 29,88 0,75 92,7 2,3 5,91 0,66 20 89 PROFIT & LOSS Capitalized Costs 1,75 4,5 1,60 5 0,14 9
Slide 17: Closing FY-2019 Gruppo DigiTouch Balance Sheet
GRUPPO DIGITOUCH – RECLASSIFIED CONSOLIDATED BALANCE SHEET (million euros) 31 Dec-2019 31 Dec-2018 Change CLOSING FY-2019 [A] [B] [A]-[B] % Fixed Assets 14,99 14,27 0,73 5,1 Goodwill 8,58 9,15 -0,56 -6,2 GRUPPO DIGITOUCH Development Costs Other intangible assets 0,34 5,57 0,27 4,28 0,08 1,29 29,1 30
Slide 18: Gruppo DigiTouch Net Financial Position
CLOSING H1 2019 – GRUPPO DIGITOUCH NET FINANCIAL POSITIONS 3.0 11.57 -2.5 Covenant 9.0 0.475 EBITDA/NFP < 2 8.1 EBITDA/NFP< 1.5 Repayment on 16th March 2020 All the covenants on executed the loans of the year 2019 were respected Cash POC 2015-2020 Financial Gross NFP ‘19 Vendor equivalent, Debts at
Slide 19: Revenues FY 2019 per Business Line
REVENUES FY 2019 PER BUSINESS LINE In terms of revenue mix, the "Data Services" business line recorded more than double growth compared to the Business Plan for 2019 (which included 2-2.5 million euros), exceeding 5 million euros. The "Performance Services" revenue line was in line with the Business
Slide 20: New Product Development
NEW PRODUCT DEVELOPMENT We are at work on new products that can give our VOICE PREDICTIVE clients a competitive SKILLS MODELS advantage IoT NATURAL INTERFACES BLOCKCHAIN 20
Slide 21: The Competitive Arena
THE COMPETITIVE ARENA Points of strength: Points of strength: CONSULTING ▪ Portfolio offer ▪ International customer base ▪ International footprint ▪ Recognized icons in global AGENCIES ▪ Scalability communications MEDIA FIRMS Points of weakness: Points of weakness: ▪ Low marketing skills ▪ poor comm
Slide 22: Business Priorities
BUSINESS PRIORITIES INNOVATE AND UPGRADE THE OFFER! AGGREGATE! Omnichannel approach Increase customer base Data-driven marketing & analytics Empower SW development capabilities Technology services International expansion 22
Slide 23: 2020 Outlook, Considering Covid-19
2020 OUTLOOK, CONSIDERING COVID-19 23
Slide 24: Appealing Evaluation Respect Comparables
APPEALING EVALUTATION RESPECT COMPARABLES Source: EnVent 24
Slide 25: Winning Competitive Advantages - Investment Highlights
WINNING COMPETITIVE ADVANTAGES DEVELOPED ALL OVER THE YEARS - INVESTMENT HIGHLIGHTS SIGNIFICANT INTERNAL INVESTMENT IN AGGREGATION ROLE TECHNOLOGY AND BIG DATA PROGRESSIVE BUSINESS GROWTH MARKET GROWTH, RELEVANCE & POTENTIAL PROFESSIONAL MANAGEMENT TEAM MARKET UNDER FAST CONSOLIDATION 25
Slide 26: Questions & Answers
Questions & Answers 26
Slide 27: Thank You
THANK YOU T +39 02 89295 100 W GRUPPODIGITOUCH.IT S Via Zarotto 2A - 20124 Milan - Italy