Future Plc · LSE:FUTR
Future — Investor Day (February 2018)
126 slides from Future's investor day presentation, Feb 6, 2018
Slide 1: Future Capital Markets Day
FUTURE CAPITAL MARKETS DAY 6th February 2018
Slide 2: Welcome
Connectors. Creators. Experience Makers. Welcome Zillah Byng-Thorne
Slide 3: Agenda
AGENDA 10am Business overview & growth strategy | Zillah Byng-Thorne 10.20am Introducing our tech stack | Kevin Li Ying 10.40am Managing content | Aaron Asadi 11am Coffee break 11.15am Commercial sales and the changing landscape Clare Dove & Zack Sullivan 11.35am eCommerce | Jason Kemp & Matthew Smi
Slide 4: Business Overview & Growth Strategy
BUSINESS OVERVIEW & GROWTH STRATEGY Zillah Byng-Thorne
Slide 5: 5
5
Slide 6: 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 ”
Slide 7: Future: Business Overview
7 Future: Business Overview We operate in 7 verticals, with over 90 brands Technology Games & Entertainment Home Interest ● Leading brands including: ● Leading brands including: ● Leading brands including: PC Gamer, Homebuilding & Renovating, Real TechRadar, T3, MacFormat, GamesRadar+, Golden Joysti
Slide 8: Future: Business Overview
8 Future: Business Overview UK 10m online users Rest of Europe 10m online Asia US & Canada users 8m online users 24m online users AUS & NZ 3m online South America users 1m online users Africa 1m online users UK US AUS Total Future offices
Slide 9: Our Strategy
9 Our Strategy Future is a global platform for specialist media with scalable, diversified brands. Creating fans of our brands by giving them a place they want to spend their time, where they go to meet their needs. Continuing to create loyal communities. Expanding our global reach through organic gr
Slide 10: Delivering Strategy: Growth in EBITDA
10 Delivering Strategy: Growth in EBITDA ● Our focus is on delivering sustainable growth in EBITDA ● We achieve this through focusing on profitable revenues rather than top-line growth ● We invested in our core operating model to create a scalable organisation ● This is a platform for further growth
Slide 11: Delivering Strategy: Diversified & Organic Revenues
11 Delivering Strategy: Diversified & Organic Revenues We have successfully grown our organic business via growing audience and developing new formats. Future US Media growth eCommerce growth +35% CAGR +161% CAGR £8.9 £4.3
Slide 12: Delivering Growth: Scalable Platforms
12 Delivering Growth: Scalable Platforms ● Right-sized our organisation to create a platform for growth ● Investments in core back office systems and scalable overhead teams Investment in Back Office ● New financial system ● New CRM ● Centralised data management Investment in Infrastructure ● Refurbish
Slide 13: Delivering Strategy: Expanding Our Global Reach
13 Delivering Strategy: Expanding Our Global Reach ● Our success is driven by market leadership in many of the markets we operate in ● Growing our global audience represents a real opportunity for further monetisation ● Achieved organically, and via strategic partnerships (Times of India etc), while
Slide 14: Delivering Strategy: Acquisitions
14 Delivering Strategy: Acquisitions ● Identifying and integrating acquisitions is a core skill ● Selection strategy based on identification of assets with new verticals and / or opportunities to monetise existing elements of the Future wheel faster ● All transactions in the last two years originated
Slide 15: Introducing Our Tech Stack
INTRODUCING OUR TECH STACK Kevin Li Ying – Chief Technology Officer
Slide 16: What is a Tech Stack?
16 What is a Tech Stack? Our Tech Stack allows: ● Our websites to exist and grow ● Our magazines to be published on time every time ● Our business to further diversify its revenue streams ● Our organisation to operate efficiently Enablers.
Slide 17: Our Tech Stack
17 Our Tech Stack One agile, flexible, lean, robust and scalable STAFF homogeneous ecosystem FREELANCE STAFF WEB PLATFORM: VANILLA CONTENT COMMISSIONING CMS PORTAL: TECH SERVICES MAGAZINE CONTENT SOURCE PLATFORM: LOCALISATION STUDIO AD TECH: + CONTENT RE-USE AUTOMATED CONTENT BORDEAUX MAGAZINE FLAT T
Slide 18: Efficient Technology Supporting Acquisitions
18 Efficient Technology Supporting Acquisitions FUTURE 2017 + HOME INTEREST | TEAM ROCK | IMAGINE MAGAZINE PLATFORM: STUDIO MAGAZINE FLAT PLANNING CONTENT RIGHTS SYSTEMS MAGAZINES DIGITAL BOOKAZINES SUBSCRIPTIONS
Slide 19: Web Platform
19 Web Platform A modern, highly scalable and dynamic web platform, Vanilla, that allows for online multi-language content creation, dynamic content analysis and content management capabilities. It is enriched with unique services supporting recurring revenue streams and regional content distributio
Slide 20: Web Platform: Enabling New & Growing Existing Brands
20 Web Platform: Enabling New & Growing Existing Brands WEB PLATFORM: VANILLA Vanilla’s global content management system delivers: CMS Great economies of scale CONTENT ● Standardised approach to online content creation LOCALISATION ● Enables content reuse and content analysis AUTOMATED CONTENT TAGGI
Slide 21: Web Platform: Enabling New & Growing Existing Brands
21 Web Platform: Enabling New & Growing Existing Brands WEB PLATFORM: VANILLA Vanilla’s content localisation feature: CMS Offers the ability for content to be targeted for specific territories CONTENT LOCALISATION like TechRadar US, UK, Australia, Singapore, India, Middle East AUTOMATED CONTENT ● Abi
Slide 22: Web Platform: Enabling New & Growing Existing Brands
22 Web Platform: Enabling New & Growing Existing Brands WEB PLATFORM: VANILLA Vanilla’s automated content tagging technology: CMS Exploiting semantic analysis to interpret and tag content in a CONTENT consistent way LOCALISATION ● Gives TechRadar, for example, the ability to create new content AUTOM
Slide 23: Web Platform: Enabling New & Growing Existing Brands
23 Web Platform: Enabling New & Growing Existing Brands WEB PLATFORM: VANILLA Vanilla’s membership service: CMS Build once and reuse everywhere – membership service currently live on PC Gamer CONTENT LOCALISATION ● Offers our users an ad-free experience, digital game keys AUTOMATED CONTENT TAGGING a
Slide 24: Web Platform: Enabling New & Growing Existing Brands
24 Web Platform: Enabling New & Growing Existing Brands WEB PLATFORM: VANILLA Vanilla’s website builder: Scalable and robust CMS ● Supports delivery of 169m web page views and 517m advertising CONTENT LOCALISATION impressions (Dec 17) AUTOMATED CONTENT ● Cost effective and future proofed; will meet
Slide 25: Ad Tech: What is Bordeaux?
25 Ad Tech: What is Bordeaux? Bordeaux is a smart and dynamic technology service that allows content monetisation through advertising. It is a true enabler to further revenue diversification in the commercial advertising space.
Slide 26: Ad Tech: Bordeaux Delivers High Ad Viewability
26 Ad Tech: Bordeaux Delivers High Ad Viewability AD ● Highly extensible tech service delivering high advertising AD inventory quality ● Identifies optimum placement of ad slots ● Intelligently adapts to multitude of web page layouts AD ● Delivers advertising viewability of 84% on T3 vs UK average of
Slide 27: Ad Tech: Bordeaux Generates Incremental Revenue
27 Ad Tech: Bordeaux Generates Incremental Revenue AD Using its incremental technology ● Grows our programmatic advertising revenue AD ● Contributes to increase advertising viewability ● Helps increase advertising yield in turn +1 ● Leverages time users spend navigating a web page ● Automatically ad
Slide 28: Ad Tech: Bordeaux Generates Incremental Revenue
28 Ad Tech: Bordeaux Generates Incremental Revenue Using its refresh technology AD ● Another dimension to increase advertising impressions available to monetise by using Bordeaux’s refresh AD technology AD ● Contributes to further increase advertising viewability ● Loads new adverts after continuous
Slide 29: Ad Tech: Bordeaux Supports New Advertising Formats
29 Ad Tech: Bordeaux Supports New Advertising Formats BIG TOP MINISCROLLER INNOVATIVE HIGH IMPACT ADVERTISING FORMAT NEW INDUSTRY ADVERTISING FORMAT
Slide 30: eCommerce Tech: What is Hawk?
30 eCommerce Tech: What is Hawk? Hawk is a powerful, proven and tested technology service that helps consumers find the right product for them online.
Slide 31: eCommerce Tech: Hawk Widgets
31 eCommerce Tech: Hawk Widgets
Slide 32: eCommerce Tech: The Brilliance of Hawk
32 eCommerce Tech: The Brilliance of Hawk High quality Algorithms Consumer match rate that learn journeys Database of Intelligent learning Every single click is 250 million products tracked end to end Reduced manual curation 87% of automated Merchant level insights matches are successful
Slide 33: eCommerce Tech: Enabling US Growth
33 eCommerce Tech: Enabling US Growth Cutting-edge technology Proprietary system design Robust and scalable ● Expand our global reach, focusing on the US first ● Robust and Resilient: ready for new avalanche of traffic ● Rapid onboarding of new merchants to meet new audience’s needs ● Solid platform t
Slide 34: People Driven Innovation
34 People Driven Innovation Uber high performing, resilient and flexible – geographically contained technical team. Team criteria meet the ever changing business’ ambitions and targeted growth objectives. Smart training Personal Graduate programme development programme Hands on, cross-team Keep up wi
Slide 35: Looking Forward
35 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
Slide 36: Summary
Summary We have a strong and scalable proprietary tech stack. It promotes reuse from content, code and component. While lean and cost effective, it supports our global growth ambition and supports the needs of tens of millions of users every month. It allows us to build and drive new incremental and
Slide 37: Managing Content
MANAGING CONTENT Aaron Asadi Managing Director, Magazines
Slide 38: We change people's lives through sharing our knowledge
38 “ 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 ”
Slide 39: Reader testimonial
“ Thank you for getting me back into shooting and bringing my fond memories back of long ago! ”
Slide 40: Reader testimonial
“I’m a gay gamer myself and didn’t know about these groups. But I’m happy they exist ” and help people
Slide 41: Reader testimonial
“ Just reading through the new issue of Classic Rock… My 10-year-old daughter is learning guitar – I’ll be showing her this magazine for ” inspiration
Slide 42: What is Future Content?
What is Future Co tent? ee 5 OF GES 45+ NS OF VIDED TUTORIALS EE NON SKILLS T' INPhoto her 100% NIKON 100% INDEPEN FUTURE 1 r
Slide 43: Our Brands
43 Our Brands Gaming & Creative & Home Technology Entertainment Music Photography Field Sports Knowledge Interest
Slide 44: The Future Content Formula
44 The Future Content Formula EXPERT PLATFORM RELEVANT AGNOSTIC EVERGREEN GLOBAL RIGHTS-MANAGED
Slide 45: Experts Creating Relevant Content
45 Experts Creating Relevant Content ● Skilled creatives, experts in their field ● Essential to winning trust ● Future is a credible member of its communities ● Future’s content must also be in-demand
Slide 46: Home of Real Talent
Home of Real Talent Astronomy Future’s space content is edited by Dr Gemma Lavender, recently awarded a PhD in Astrophysics and a regular speaker at astronomy events
Slide 47: Home of Real Talent
Home of Real Talent Guitars Our Guitar Techniques content is edited by Neville Marten, an industry veteran who worked on Jimi Hendrix’s white stratocaster and played on stage with Gary Moore
Slide 48: Home of Real Talent
Home of Real Talent 3D Art The Editor of 3D World, Rob Redman, founded his own creative design studio, Pariah Studios, whose clients include McDonald’s and O2
Slide 49: Global & Evergreen Content
49 Global & Evergreen Content ● Content is created for a worldwide audience ● Distribution spans the world ● Licensees from France to China ● Content with an extended half-life
Slide 50: Future Content across the World
50 Future Content across the World 195 ONLINE 40 UK EDITION 10 LICENSED TERRITORIES TERRITORIES TERRITORIES Digital Camera Future’s Digital Camera brand has a print edition on sale in 40 countries and is licensed in a foreign language in over 10.
Slide 51: Content is Designed to be Platform-agnostic
51 Content is Designed to be Platform-agnostic ● Audience need before format ● Content moulded to fit various platforms ● Future has transitioned from platform to platform ● Future welcomes the disruption of new platforms
Slide 52: The Lifecycle of a Single Piece of Content
52 The Lifecycle of a Single Piece of Content Example: LICENSED Technology EDITION A single Future how-to guide can be published in a print edition, a licensed ANNUAL edition, an app, an online article and a bookazine APP INVESTMENT MAGAZINE BOOKAZINE RETURN LICENSED ARTICLE EDITION ONLINE APP ARTIC
Slide 53: Powered by Excellent Rights-Management
53 Powered by Excellent Rights-Management ● All in-house content is 100% Future-owned ● Able to re-use and license commissioned content across platforms ● Assets purchased from partners allow for maximum re-use ● Future’s proprietary Source & Studio system makes re-use easy ● Investment in S&S sets
Slide 54: How We Make Our Content Connect
54 How We Make Our Content Connect 01 INSIGHT ● Content created using a tested process ● 4 key stages 02 INTERPRET ● Replicated across subject matters 03 INVENT ● Proven to be scalable 04 FORMAT
Slide 55: From Format to Format
55 From Format to Format How one piece of access to a major release converts to online and print formats ARTICLE ● SEO-driven content on GamesRadar+ ● Designed for print and digital with video media included editions
Slide 56: The Future Content Model
56 The Future Content Model ● Genre-agnostic CREATE ● Suits myriad markets STORE ● Works across platforms ● Create once, store and publish PUBLISH multiple times over ● Systematic, replicable at scale
Slide 57: How Our Content Creates Brands
How Our Content Creates Brands ● Content that connects with communities ● Reaches a vast audience ● Frequency rewarded with loyalty ● Loyalty builds our brand equity ● Future brands have trail-blazed a path for new ones
Slide 58: Virtuous Circle
Virtuous Circle ● Brands that enjoy loyalty ● The community informs Future ● We learn from them as they learn from us ● Through connection, our content begins to power itself
Slide 59: Coffee Break
COFFEE BREAK 59
Slide 60: Commercial Sales & The Changing Landscape
COMMERCIAL SALES & THE CHANGING LANDSCAPE Clare Dove Commercial Director Zack Sullivan Operations Director 60
Slide 61: Agenda
AGENDA • The changing media landscape • The UK Commercial Sales Team • Capitalising on Buy & Build • Effective creative solutions • Programmatic
Slide 62: The Changing Media Landscape
62 The Changing Media Landscape Source: Enders Analysis. 2016 and 2017 are forecasted figures.
Slide 63: Media Landscape
MEDIA LANDSCAPE AVERAGE TIME SPENT WITH ALL MEDIA HAS INCREASED FUTURE
Slide 64: Half the money I spend on advertising is wasted
64 “ Half the money I spend on advertising is wasted; the trouble is I don't know which half ” John Wanamaker (1838-1922)
Slide 65: Future's Media Landscape
65 Future’s Media Landscape ● Specialist media is the market to be in: ○ Consumers look to specialist media to be inspired and to find new products within the framework of their area of special interest ○ We allow advertisers to reach targeted communities, globally, at scale
Slide 66: UK Commercial Sales Team
66 UK Commercial Sales Team WE ARE ANYWHERE Bromsgrove AND WE WIN EVERYWHERE 34 London Bath sales people based in Bournemouth three of our UK offices
Slide 67: Our Strategy
67 Our Strategy ● Selling audiences and brands ● Client and agency relations ● Vertical strategy focused on core markets ● Focus where there is alignment between advertisers and our content
Slide 68: UK Commercial Advertising Objectives
68 UK Commercial Advertising Objectives Overarching objectives: ○ Get a disproportionate share of media spend from the media market ○ Grow unique revenues ○ Develop revenues at a premium price point reflective of our brand strength and our unique audiences ○ Take advantage from Buy and Build opportun
Slide 69: Buy and Build Strategy
69 Buy and Build Strategy ● Capitalise on new brands and scale our audience ● Seamlessly integrate acquisition brands into our structure ○ New Verticals ○ Integration into existing verticals
Slide 70: Effective Creative Solutions
70 Effective Creative Solutions 53% ● A “creative solution” is an innovative, bespoke growth in creative solutions media solution that we create for our clients and (2017 vs 2015) agencies Client’s brand ● It consists of unique content and experiences that deliver on our clients’ marketing strategie
Slide 71: The USA Road to Consumer Electronics Show
71 The USA Road to Consumer Electronics Show LOS ANGELES The journey comprises of 8 stops, from Santa Monica, the start of Route 66, to New York City to arrive 8 days later at CES in Los Angeles LAS VEGAS MONUMENT VALLEY COLORADO TEXAS MEMPHIS WASHINGTON, D.C. NEW YORK CITY
Slide 72: USA Road to CES
USA Road to CES Connectors. Creators. Experience Makers.
Slide 73: Programmatic Overview
73 Programmatic Overview “Programmatic” refers to the use of software & platforms to automate the market for digital advertising, as opposed to the traditional process that involved responding to a brief, human negotiations, manual insertion orders and delivery management.
Slide 74: What we Sell
What we Sell Connectors. Creators. Experience Makers. ‘Wt THE INPATIENT’ Watch EVERY Super Bow taller you might have missed from Solo: A Star Wars Story to Mision: Impossible - Fallout Peeriongnarsienl ‘ign nce Joln GamesRadar on YouTube! Why do so many Destiny payers seem love Monster Hunter Wedd a
Slide 75: The difference?
The difference? ee Connectors. Creators. Experience Makers. Watch EVERY Super Bow taller you might have missed from Sole: A Star Wars Story to Mision: Impossible - Fallout abe Sa or ‘Why do so many Destiny payers seem t love Monster Hunter Wedd alle a sudden? Farry season pss has zombies, allen bags
Slide 76: Programmatic Overview
76 Programmatic Overview “Programmatic” refers to the use of software & platforms to automate the market for digital advertising, as opposed to the traditional process that involved responding to a brief, human negotiations, manual insertion orders and delivery management.
Slide 77: The Industry Trends
The Industry Trends billions of £, % change and % of total digital display ad billions, % change and % of total digital display ad spending* spending* $45.72 . £4.52 er ’ $25.48 “ 16.6% 205 2016 2017 2018 2015 2016 2017 2018 @ Programmatic digital display ad spending Programmatic digital display ad
Slide 78: Programmatic - At Future
78 Programmatic - At Future At Future we have two elements to our programmatic offering. Premium Programmatic and Open Auction / Real Time Bidding. ● Premium Programmatic ○ Automation of Delivery ○ Price or Quantity is agreed ○ Sold direct to buyers ○ First Publisher to run Programmatic Guaranteed ●
Slide 79: Programmatic - Value
79 Programmatic - Value Ad Units Per Page X Page Views X Yield = Total Revenue
Slide 80: Programmatic - Growth at Future
80 Programmatic - Growth at Future +24% CAGR *Excludes revenues for third parties (Future Partners)
Slide 81: Programmatic - Viewability
81 Programmatic - Viewability 42% to 68% 104% The viewability improvement impacts the ad impression per page element of our formula. increase in viewability Average YoY increase in CPMs
Slide 82: Programmatic - Drivers of Growth
82 Programmatic - Drivers of Growth Headerbidding allows ad inventory to be offered to multiple demand sources to bid on inventory simultaneously with the highest bidder winning the impressions. This drives up yield.
Slide 83: Programmatic - Headerbidding Impact
83 Programmatic - Headerbidding Impact 2 to 11 175% increase in partners increase in CPMs
Slide 84: Programmatic - Scalable Benefits
84 Programmatic - Scalable Benefits The benefits of this technology are: ● The team is based in the UK ● New Brands Launched or Acquired can be integrated benefiting immediately from the increase in delivery efficiency and yield ○ Home Interest programmatic increased 480% in 4 months ● Open Auction mone
Slide 85: Summary
85 Summary Commercial Sales We have a winning sales team set up to meet buyers needs We are anywhere and win everywhere Growth in Creative Solutions Programmatic We expect growth in the industry to continue Through Formulaic thinking we can manage our growth effectively Improving demand and quality
Slide 86: eCommerce
86 ECOMMERCE Jason Kemp Director eCommerce and Emerging Brands Matthew Smith Head of eCommerce
Slide 87: eCommerce Performance
87 eCommerce Performance A new source +161% CAGR £8.9 of revenue in 2014 £4.3 Grown from £0.5m in 2014 to £8.9m in 2017 +161% CAGR from 2014 to 2017
Slide 88: What is eCommerce at Future?
88 What is eCommerce at Future? Is this the right product for me? ● Future’s editors are skilled at writing content that connects, and meets our users’ needs. ● For 33% of our audience who land on Future’s sites to read a product review, buying guide or deals post, this need is related to making a p
Slide 89: What is eCommerce at Future?
89 What is eCommerce at Future? Great! Where can I buy this for the best price? ● Where the answer is ‘yes’, then it becomes the role of the eCommerce team to connect further with our audience by answering their next question: ● “Where can I buy this product, either for the best price or for the bes
Slide 90: What is eCommerce at Future?
90 What is eCommerce at Future? ● In 2014 we helped answer this question by creating a proprietary piece of eCommerce price comparison software called Hawk. ● Hawk allows us to identify the most relevant retailer deals. We can then show them to our audience at the points in our content that we have
Slide 91: What is eCommerce at Future?
91 What is eCommerce at Future? It is when a reader of our content clicks out to one of our retail partners from a link on our page and purchases the product of their choice, that we generate eCommerce revenue.
Slide 92: What is eCommerce at Future?
92 What is eCommerce at Future? eCommerce fits perfectly with our global audience strategy of Discover, Engage, Purchase: Readers Discover our content through searching for the buying terms that matter to them. Our content Engages them with expert and easy-to-understand buying advice. Hawk then facil
Slide 93: JK
JK
Slide 94: Incremental Revenue
94 Incremental Revenue eCommerce means that we can monetise our audience twice in two complementary and non cannibalising ways. 1. Ads 1 2. eCommerce For example, on the page opposite, our ‘Best Laptops’ page in December: ● Ad revenue was at £9.44 per 1000 Pageviews ● eCommerce revenue was £21.74 pe
Slide 95: What is eCommerce at Future?
95 What is eCommerce at Future? eCommerce at a publisher differs significantly to eCommerce in a retailer in the following ways: Retailer Future Handles the transaction? Y N Capital tied up in stock? Y N Stock risk? Y N Investments in buying, merchandising, Y N logistics? Earns full gross margin on t
Slide 96: What is eCommerce at Future?
96 What is eCommerce at Future? Writing content that Visitors to a page connects, coupled with a relevant Hawk Hawk proposition, drives the Appears % Visitors that get to top of our funnel Click Through see Hawk It is the retailer’s role Rate % Clicks generated to to ensure that they our retail part
Slide 97: eCommerce in Context
97 eCommerce in Context ● In 2017 we drove an average of 165,000 sales a month for our retail partners. ● The average order value of these transactions was more than £70, and this generated around £147m of retail sales value for our partners. ● To put that in context, that represents: ○ 1 laptop sol
Slide 98: eCommerce is Global
98 eCommerce is Global eCommerce is also a global revenue stream for Future, allowing us to facilitate transactions wherever our audience is by matching them with local and global retailers.
Slide 99: Our Focus on the US
99 Our Focus on the US The US is a key focus for us right now. We’ve grown it to the largest single territory for eCommerce total revenue in the last year. The US has: ● 5 times the UK Population ● Twice the UK audience on Future sites ● Yet every 1000 users in the US are monetised via eCommerce at
Slide 100: Data at our Core
100 Data at our Core 50m 3.3m Clicks Monthly Through Unique Users Hawk eCommerce at Future is immensely data driven. With our visitor volumes we have large data sets to analyse and interpret, enabling us to identify areas where we can better meet our user’s needs and 10,000s drive the sales funnel a
Slide 101: Data at our Core
101 Data at our Core Within this data we look for opportunities to drive revenue, and are constantly running A/B Testing to make sure we’re best meeting our user’s needs and driving sales. For example, we gained insight from click data that a subset of users in the UK were looking only for Amazon de
Slide 102: Data at our Core
102 Data at our Core We use data to understand the yield from our eCommerce-focused content, and therefore to determine whether we should invest in expanding particular content verticals or article types. This combination of art (writing) and science (data analysis) allows us to drive the most value
Slide 103: Driving a Competitive Advantage
103 Driving a Competitive Advantage As we look to extract the maximum value from our data, we also look at how we can share it to enable other parts of the business to increase their own revenues. E.g. We can sell data segments that lets advertisers target users who: ● Are ‘in-market’ for a laptop a
Slide 104: Diversification
104 Diversification Our data-led approach enables us to identify effective ways to diversify our portfolio of content channels, eCommerce partners and revenue streams
Slide 105: Diversification
105 Diversification ● One stand-out area is mobile phone contract comparison; a natural extension of our phone handset reviews. ● Hawk enabled us to rapidly scale into this vertical, which had a more complex user journey and multiple facets to communicate, such as: ○ Minutes ○ Texts ○ Data ○ Monthly
Slide 106: We now rank for key search terms
106 We now rank for key search terms, and last FY we sold over 33,000 phone contracts, across 14 networks and resellers. Discover Engage Purchase Mobiles.co.uk Affiliate Manager recently said: “TechRadar has been a trusted partner of Mobiles.co.uk for the past few years. We have seen growth on an inc
Slide 107: Diversification
107 Diversification In May we launched our first Hawk-powered Broadband comparison chart, with an integrated Postcode finder that allows users to generate available deals based on their property location. By partnering with a third party for the Postcode API we were able to launch quickly.
Slide 108: Diversification
108 Diversification In 9 months we have gone from ranking on the second page of Google to rivalling comparison giants for major broadband comparison terms. Our unique mix of content and comparison has allowed site visitors to research and purchase the right deal in a single location.
Slide 109: A Diverse and Defensible Business
109 A Diverse and Defensible Business Our aim is not just to build a diverse revenue stream, but also a defensible one. How? ● Our proprietary software, Hawk, enables us to own the end-to-end customer journey ● By diversifying our sites’ content verticals and geographies where we make revenue ● Our
Slide 110: Diversification
110 Diversification A great example of cross-site diversification is the launch of RealHomes.com ● Test conducted in 2017 on T3 for home and kitchen content ● This test informed the acquisition of our Home Interest division ● Our scalable tech stack enabled the launch of RealHomes.com in just 5 weeks
Slide 111: Recurring Revenue Driven by Data
111 Recurring Revenue Driven by Data ● We have background data to eCommerce Daily Run Rate: Jan 17-Sept 17 forecast with high degrees of accuracy. ● All of this means we can model improvements to the funnel, from the top to the bottom, and accurately predict revenue. ● This provides the business wit
Slide 112: Summary
112 Summary We are passionate about eCommerce at Future because: ● It provides an additional way to connect with our audience ● It generates closer relationships with retail partners ● It delivers truly incremental, non cannibalising revenue ○ Predictable and recurring ● It yields large volumes of h
Slide 113: Why Invest in Future?
113 WHY INVEST IN FUTURE? Penny Ladkin-Brand Chief Financial Officer
Slide 114: Scalable Platform for Growth
114 Scalable Platform for Growth ● Future is a blend of art and science; beneath the creativity, specialist content and passionate fans lies a strong foundation layer of technology ● Designed and built to be highly scalable, with a strong focus on cost effectiveness and eliminating redundancy
Slide 115: Strong Fundamentals
115 Strong Fundamentals ● Organic profit growth £m 2017 2016 YoY Var as the revenue mix Media Division Gross Contribution 27.6 19.5 42% changes improves margin GC margin 81% 82% (1pp) ○ Declines in print market expected Magazine Division Gross Contribution 33.4 23.5 42% and factored into GC margin 66
Slide 116: Growing Free Cash Flows
116 Growing Free Cash Flows ● Margin expansion as business scales and mix changes ● Significant growth in operating cashflows ● FY17 free cash flow £15.3m
Slide 117: Significant Opportunity in US
117 Significant Opportunity in US ● Potential to grow revenue through monetising US audience at same rate as the UK ● Potential to increase market share of audience 40% 43% 23% 63% of Future’s of Media of Future’s of Media online revenues online revenues audience (FY17)* audience (FY17)* *Including i
Slide 118: Ability to Accelerate Growth Through Acquisitions
118 Ability to Accelerate Growth Through Acquisitions ● To date we have been able to acquire businesses with some print exposure at a relatively low multiple. ● Benefit of the platform means we can integrate quickly and slot into core infrastructure and operating model. FY17 Acquisitions EBITDA multi
Slide 119: Summary
119 Summary ● Scalable platform: fit for growth both organic and acquired ● Strong fundamentals: attractive free cash flows ● Significant growth opportunity in the US ● Ability to accelerate growth through acquisitions
Slide 120: Conclusion & Questions
CONCLUSION & QUESTIONS 120
Slide 121: Appendix
APPENDIX 121
Slide 122: Our Strategy
122 WHERE WE ARE GOING OUR STRATEGY Future is a global platform for specialist media with scalable, diversified brands. Creating fans of our brands by giving them a place they want to spend their time, where they go to meet their needs. Continuing to create loyal communities. Expanding our global rea
Slide 123: Global Platform for Specialist Media
123 Global Platform for Specialist Media
Slide 124: Specialised Media in Multiple Sectors
124 Specialised Media in Multiple Sectors Specialist high-value sectors, scalable markets delivering diversified revenues Technology Gaming & Entertainment Music Creative & Photography Field Sports Knowledge Home Interest
Slide 125: Why We Exist
WHY WE EXIST “ 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 ”
Slide 126: Thank You
FUTURE THANK YOU