System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — FY2007 Earnings Presentation
23 slides from System1's earnings presentation, March 2008
Slide 1: Innovative Research for Inspiring Marketing
Innovative Research for Inspiring Marketing An innovative international online research agency & the first in 20 years to win the industry’s ‘Best Methodology award twice March 2008 London S Brighton S Rotterdam S New York S Los Angeles A Leading International Online research agency
Slide 2: About BrainJuicer
About BrainJuicer® S A leading international online market research agency S Innovative software produces insightful research S Only agency to win industry’s ‘Best Methodology’ award twice in 20 years S Multinational client base; 15 of world’s top 100 companies S Over 115 clients, research in over 5
Slide 3: BrainJuicer Management Team
BrainJuicer® Management Team CEO CFO John Kearon James Geddes S 20 years experience S 20 years financial S Unilever Research/Mktg management experience S Publicis Planning Director S CFO of IOBox - sold to Telefonica S Founder Brand Genetics S Assistant Treasurer of S E&Y Emerging Fosters Brewing Gr
Slide 4: BrainJuicer Management Team
BrainJuicer® Management Team Ken Ford, Chairman S Previously Chief Executive Mark Muth, of Teather & Greenwood Non-Executive SPrevious directorships include Aberdeen Asset Simon Godfrey, Director Management, Morgan Grenfell Non-Executive and Wedd Durlacher S Led Unilever Ventures’ Director investmen
Slide 5: Growth of Market Research
Growth of Market Research Growth = 46% 3 Growth = 336% Annual compound 7% Annual compound 28% 20 2.5 2 15 US$bn US$bn 1.5 10 1 5 0.5 0 0 00 01 02 03 04 05 06 00 01 02 03 04 05 06 20 20 20 20 20 20 20 20 20 20 20 20 20 20 US Online MR Japan + ROW MR Global MR offline Europe Online MR ESOMAR Industry
Slide 6: Market Research Evolution
Market Research Evolution 2000 2008 2012 BrainJuicer Offline Online Estimate US online MR 10% US online MR 40% US online MR 60% EU online MR <1% EU online MR 10% EU online MR 40% Offline Research Fieldwork Revolution Research Revolution More representative Faster More representative More tactile Che
Slide 7: Where BrainJuicer Competes
Where BrainJuicer Competes 2006 % By Spend 2006 % By Type Consumer B-2-B Strategic front-end Omnibus Other Public Sector Continuous Other N.B. ‘BrainJuicer’ logo indicates where the group operates rather than market share 8
Slide 8: BrainJuicer Innovation
BrainJuicer Innovation… S Insight Validator™ grew 88% on the back of mandate S Creative 6’ers™ adopted by 5 multi-nationals since 2007 launch S Predictive Markets grew 128% ‘Best Methodology’ in 2005 S FaceTrace™ ‘Best Methodology’ in 2007 Foundation Screening Evaluation Prediction Launch Tracking P
Slide 9: FaceTrace - winner ESOMAR best methodology
FaceTrace™ - winner ESOMAR best methodology 10 Which of these faces best expresses how you feel about this idea? To what degree did this idea make you feel [selected emotion]? And what was it about this idea that made you feel this way? [Use MindReader to capture reasons for each emotion]
Slide 10: Results
Results 11 S Absence of emotion = absence of any action S Greater the emotion = greater propensity for action S Reflective emotion = more helpful than autonomic Intensity Score measured on a scale from 0 to +3 2.17 1.92 1.58 0.79 0.71 1.31 100% 2 3 4 1 5 1 1 8 1 1 1 1 2 90% 20 3 19 6 16 Contempt 80%
Slide 11: How Potent are your Insights?
How Potent are your Insights? 12 1. Insights rated on each KPI using 2. VALIDATED = Green area above 3. REWRITE = Amber area 4. THINK AGAIN = Red Area below country norms, split into quintiles & the dotted lines represents above between the dotted lines represents dotted line box represents poor plo
Slide 12: Creative 6'ers
Creative 6’ers™ 13 Elephant ideas & humanising ideas & more abstract ideas S A finger puppet S Water proof 4 bath S Whistle in trunk Elephant ideas & S Make it laugh humanising ideas S Make it dance S Make it fart & burp S Pull the trunk to open S Help spell & count its mouth S Roar when smacked Ele
Slide 13: Predictive Markets
Predictive Markets 14 The Wisdom of Crowds: How the Many Can Be Smarter than the Few James Surowiecki (2004) X 596 Polls ¾ (1988 - 2000)
Slide 14: Ensuring clients are working with great concepts
Ensuring clients are is working with great concepts 15 Let the Creatives create and the Market decide Creative Predictive Sixers™ Markets Use 50 ‘Creative Sixers’ 15 ideas in a Predictive Market to generate 50 unique ideas where 500 select the most Potent 2 weeks brief-to-debrief 2 weeks brief-to-de
Slide 15: Labs
Labs 16 FamilyCam™ / BarCam Juicy Communities Family Cam wired up for Web 2.0 social networks online ethnography + product and online communities to testing as an inspirational & provide a 24/7 inspirational insightful research resource & insightful research resource Brand Personality Profiling Mobi
Slide 16: BrainJuicer Financials
BrainJuicer Financials S Revenue increased by 42% to £6,566,000 (2006: £4,608,000) S Operating profit increased by 77% to £844,000 (2006: £477,000 before listing expenses) S EPS (diluted and adjusted) increased to 5.0p (2006: 2.8p) S All business units demonstrated strong performance: revenue grew b
Slide 17: Operational highlights
Operational highlights S Solid relationships with key clients: Now serve 15 of the world’s top 100 companies 80% of revenue from repeat business Average revenue per headcount grown from £122,000 to £146,000 S Strengthened team: Appointed Ken Ford as non-executive Chairman Average headcount
Slide 18: Income Statement
Income Statement 2007 2006 £’000 £’000 Revenue 6,566 4,608 Cost of sales (1,727) (1,189) Gross profit 4,839 3,419 Administrative expenses (3,995) (2,942) Listing expenses - (354) Operating profit 844 123 Investment income 49 3 Finance costs - (32) Profit before tax 893 94 Tax (233) (157) Profit afte
Slide 19: Balance Sheet
Balance Sheet 2007 2006 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 119 78 Intangibles 328 - Deferred tax 222 213 669 291 Current assets Inventories 16 45 Trade and other receivables 2,630 1,612 Cash 1,875 1,233 Total assets 5,190 3,181 EQUITY Share capital and reserves 2,340
Slide 20: Strategy for Growth
Strategy for Growth Geographic expansion Existing Clients 80% 20% New Clients New Research Products 21
Slide 21: BrainJuicer Differentiators
BrainJuicer Differentiators Innovative software & research 2-in-1 offer; solutions Quantitative research with the depth of qualitative insight Research in 50+ Multinational client base, countries, over 30 15 of top 100 global co’s Providing clients with languages improved innovation advantage Focuss
Slide 22: Client endorsements
Client endorsements “Using BrainJuicers we generated & tested dozens of ideas to find a winner. What would normally take us months we finished in 2 weeks. More Juice please!” Jaroslav Cir – Global Consumer & Market Insight Manager Rexona "I was really impressed with the insight and accuracy of their
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