Digitouch Spa · MIL:DGT
Digitouch Spa — Gruppo DigiTouch — Investor Day (May 2019)
29 slides from Digitouch Spa's investor day presentation, May 27, 2019
Slide 1: Gruppo DigiTouch Financial Results FY 2018 and Business Plan progress
Gruppo DigiTouch Financial Results FY 2018 and Business Plan progress 27th May 2019 1
Slide 2: Company at a glance: Mar-Tech group
2007 2015 PUBLIC ON SET UP THE MAIN INDEPENDENT DIGITAL MARKETING PLAYER IN ITALY ~ 220 PROFESSIONALS 2 Milan OFFICES Rome A ONE-STOP-SHOP FOR DIGITAL TRASFORMATION SOLUTIONS and an Enabling Partner for Brands Digital Communication & Technology, thanks to an integrated offer of Strategy, Technology,
Slide 3: Partnerships and technology
Partnerships and technology Strategic Partnerships Own Technologies • Chatbot • Risk Management • Pac • Meware Cognitive Platform • Cms Social • Business Process Automation • Custom Cms • Sviluppo UX/UI • Dealer Tab • Test Automation • Store Locator • Gamification Platform iEGP® • Analytics 3
Slide 4: Business model up to now: one-stop-shop for Digital Marketing
Business model up to now: one-stop-shop for Digital Marketing Three strategic and integrated business units 1 ADVERTISING 2 PERFORMANCE 3 DATA SERVICES MARKETING SERVICES SERVICES • Business Intelligence • Social Media solutions • Seo solutions • DMP • Consultancy • Vertical comparables: finance • C
Slide 5: Business Model evolution: Full Digital Platform
Business Model evolution: Full Digital Platform COMMUNICATION EXPERIENCE COMMERCE TECHNOLOGY CUSTOMER EXPERIENCE ADVERTISING DIRECT TO CONSUMER MARTECH CONSULTING DESIGN PERFORMANCE MARKETING PLATFORM & WEBSITES OMNICHANNEL MARKETING AUTOMATION MEDIA MANAGEMENT MOBILE APPLICATIONS MARKET PLACES DATA
Slide 6: An integrated offer of Marketing & Technology
An integrated offer of Marketing & Technology DigiTouch Tecnology & Marketing assets allow an integrated value proposition to key decision makers with a re-definition of Technology and Advertising market perimeter AI Performance Marketing Data Driven CEO CMO Content marketing CTO E-commerce Digital
Slide 7: Client portfolio – Full diversification
Client portfolio – Full diversification We work with AUTOMOTIVE PHARMA & HEALTHCARE RETAIL & E-COMMERCE FASHION Medium/Large sized 2,91% 4,39% 53,4% 8,57% companies belonging to different verticals. NUMBER OF UNIQUE CLIENTS ~80 FINANCE & INSURANCE TRAVEL, EDUCATION & ENTERTAINMENT TELCO, UTILITIES &
Slide 8: Track Record M&A
Track Record M&A 2014 2015 2016 2017 2018 2019 PERFORMEDIA THEBLOG TV COMMUNITIES PURPLE OCEAN MEWARE OPEN GATE (10%) AUDIENS Business Line: Performance Business Line: Advertising Business Line: Data & Business Line: Data & Equity Method Participation Sold to Bango and Vertical Comparables Services
Slide 9: Growth Strategy: Cross selling
Growth Strategy: Cross selling Case History: large retailer - DigiTouch Client since 2014 Thanks to a complete product offer DigiTouch is able to increase customer value rapidly more than in the past 2014 2015 2016 2017 2018 SOCIAL MEDIA SOCIAL MEDIA SOCIAL MEDIA SOCIAL MEDIA SOCIAL MEDIA CREATIVITY
Slide 10: Internet Advertising Market in Europe
Internet Advertising Market in Europe Italy shows space for further growth European Digital Advertising market has doubled in size in 5 years. Top 10 rankings (by market size) in 2017 The European Digital Advertising market reached € 48bn in 2017 compared with € 24,8bn in 2012. 1. UK – €15,6bn 2. Ge
Slide 11: DigiTouch enlarges its addressable market
DigiTouch enlarges its addressable market Digital Transformation: Italian Market DIGITAL • Strong concentration of Google and Facebook MARKETING 3 billions • Polarization on media and large companies • Strong fragmentation of supply and demand • Rapid innovation DIGITAL FRONT END • Growth of large a
Slide 12: Comparison between ICT management budget and 2018 turnover
Comparison between ICT management budget and 2018 turnover Italian Market Comparison between ICT Services management budget and 2018 turnover stands at around 2,1% Industry for survey respondents. Medium-sized Finance sector remains at the top of the ranking, followed by Big-sized Media/Telco and Ut
Slide 13: Closing FY 2018 – Market take out
Closing FY 2018 – Market take out In 2018 the advertising services market in Italy recorded a 10%+ growth rate and displayed the following strategic dynamics: Strong consolidating process in the market – MARKET IN CONCENTRATION • Medium-small agencies are acquired by the biggest Companies in order t
Slide 14: Financial results and consolidated results 2018
Financial results and consolidated results 2018 Revenues: 32,23 million euros (+12%); adjusted EBITDA: 4,92 million euros (+ 12%); EBIT: 1,05 million euros (+ 206%) The Board of Directors of DigiTouch SpA has examined and approved today the draft financial statements and the consolidated financial s
Slide 15: Closing FY 2018 – Gruppo DigiTouch Profit & Loss
Closing FY 2018 – Gruppo DigiTouch Profit & Loss • Total revenue in 2018 are 32,2 million Euros in RECLASSIFIED CONSOLIDATED INCOME STATEMENT OF GRUPPO DIGITOUCH increase of 12% in comparison with the same period (Milion Euros) Financial Year 2018 Financial year 2017 Change of 2017 [A] % [B] % [A]-[
Slide 16: Revenues FY 2018 per Business Line
Revenues FY 2018 per Business Line 21,3 19,4 10,0% 2018 12,9% 29,9 2017 26,5 8,2 6,6 24,5% 0,5 (29,9)% 0,4 2017 2018 2017 2018 2017 2018 Value in Million Euros Reading key: ADVERTISING SERVICES PERFORMANCE MARKETING SERVICES DATA SERVICES 16
Slide 17: Closing FY 2018 – Gruppo DigiTouch Balance sheet
Chiusura FY 2018 – Gruppo DigiTouch Balance sheet • In the balance sheet, the fixed capital of 2018 is substantially in line with the previous year. Against a reduction in Goodwill (deriving from equity investments) from 10,2 million euros to 9,1 million euros, there was an increase in intangible fi
Slide 18: Closing FY 2018 – Group net financial position
Closing FY 2018 – Group net financial position 3,0 7,5 - 1,5 Covenant 6,0 EBITDA/NFP < 2 0,1 EBITDA/NP < 1,5 4,4 All the covenants on financing for the year 2018 are respected Financial POC 2015-2020 Last payment Financial payables Gross NFP 2018 receivables and Tranche at December 31, debts securit
Slide 19: Closing FY 2018 – Group total investments from 2014
Closing FY 2018 – Group total investiments from 2014: 22.5 million of Euro Value in Million Euros 5,25 22,5 17,25 Companies Investments in Research Total Investments Acquisitions & Development of the Group 19 16
Slide 20: Closing FY 2018 – PFN (Debt Maturity)
Closing FY 2018 – PFN (Debt Maturity) 4.000.000 3,7 3.500.000 The activity related to the reimbursement of the Convertible Bond 2015-2020 will be launched after the approval of the Financials 3.000.000 2018 by the Shareholders' Meeting 2.500.000 2.000.000 1.500.000 1,3 1.000.000 0,6 500.000 0,4 0,2
Slide 21: Closing FY 2018 – Dividend distribution proposal
Closing FY 2018 – Dividend distribution proposal • 2018 dividend Euro 0,02 (vs. 0,04) per share in reduction vs 2017 in order to keep financial resources to sustain external and investments growth. • It is proposed to fix the dividend detachment on June 24th, the record date will be June 25th and pa
Slide 22: DigiTouch business plan 2018-2020
5 Years Revenues & MOL progression DigiTouch business plan 2018-2020 60,0 REVENUES EDITDA ADVERTISING PERFORMANCE DATA ~52 52,0 MARKETING 50,0 ~40 +30% 42,0 40,0 +24% Data are expressed in million of Euros 33,0 33/35 28,9 +22% 30,0 27,0 20,0 ~8 10,0 ~6 4,3 4,4 ~5,0 0,0 2016 2017 2018 2019 2020 PROGR
Slide 23: 7 Years Revenues Growth
7 Years Revenues Growth +11,6% +7,0% • CONTINUOUS, STABLE +9,0% GROWTH WITH REGULAR PROFITABILITY • 2018 RESULTS: +54,6% • 32,2 MILLION EUROS 32,2 REVENUES 28,9 27,0 24,3 • 4,9 MILLION EUROS EBITDA 15,7 12,5 9,7 4,9 4,3 4,4 FY - 2012 FY - 2013 FY - 2014 FY - 2015 FY - 2016 FY - 2017 FY - 2018 Data e
Slide 24: Closing FY 2018 – Main take out from results
Closing FY 2018 – Main take out from results 1. Turnover growth higher than digital marketing market growth rate 2. Clients acquisition very positive and good clients retention (50%) 3. Consolidated ability of R&D development: investments in the amount of 5% of the revenue 4. High control of the per
Slide 25: What has changed
What has changed 1. Large amount of data and increasing experience to give them value 2. Accessibility of technologies 3. Smarter Clients 4. Self service everywhere 5. Suppliers razionalization need 6. Convergence of assets & Business 7. CIO and CMO merge 25
Slide 26: Last deal: Meware
Last deal: Meware The acquisition of Meware Srl is the largest deal in DigiTouch's history since the listing date by size of the acquired company (6,6 million Euro in turnover in 2018 and 90 specialists in big data and business analytics) Operation Details: Advantages for the Group: • Purchase of 60
Slide 27: Priorities 2019-2020
Priorities 2019-2020 1. Reinforcing & developing new Technologies (Big Data, Artificial Intelligence, E-commerce) 2. Internationalization: focus on M&A 3. Market Consolidation: continuing acquisition mode 4. Organizational excellence: adding management skills 27
Slide 28: Investment highlights
Investment highlights Winning competitive advantages developed all over the years SIGNIFICANT INTERNAL INVESTMENT IN AGGREGATION ROLE TECHNOLOGY AND BIG DATA Continuous effort on aggregating marketing 1,0 million on yearly base to 2020 potential and market share PROGRESSIVE BUSINESS GROWTH MARKET GR
Slide 29: THANK YOU
THANK YOU Simone Ranucci Brandimarte, President, Gruppo DigiTouch simone.ranucci@gruppodigitouch.it Gruppo DigiTouch T 02 89295100 Via Zarotto 2A W GRUPPODIGITOUCH.IT 20124 Milan, Italy S