System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — H1 2016 Earnings Presentation
9 slides from System1's earnings presentation, 2016
Slide 1: Results Presentation | Six months ended 30 June 2016
Feel more: Buy more. Results Presentation | Six months ended 30 June 2016 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency
Slide 2: Leading exponent of behavioural economics and system-1 thinking
Leading Our five golden rules of exponent famous 5-Star communication of behavioural 1. We think much less than we think we think economics and (fast feelings drive decisions, slow thinking rationalises the reasons) system-1 thinking 2. Those who tell the best stories rule the world (the human mind
Slide 3: Building our core, expanding our offering and extending our availability
Building our core, Returned to double digit growth System1 Advertising Agency expanding our 15% gross profit growth (11% in Set-up of new Advertising Agency offering and constant currency). on track. extending our Fame | Feeling | Fluency Automation availability New model for brand building bearing
Slide 4: Top-line returned to growth after two slower years
H1 gross profit (£m) main top-line performance indicator 15 Revenue up 12% Top-line returned 10 Gross profit up 15% to growth after 5 Normalised operating profit up 20% two slower years Normalised profit before tax up 22% 0 2009 2010 2011 2012 2013 2014 2015 2016 Reported profit before tax up 45% H1
Slide 5: Growth driven by Ad Testing and Brand Tracking
H1 product mix – gross profit £m Most of business now core quantitative services Ad Testing & Brand Tracking helping clients build brands and innovate Growth driven by Predictive Markets Non-core (“Twist”) services and qualitative (“Juice Ad Testing and Other core Gen”) services now only 15% of the
Slide 6: Mixed fortunes geographically
Mixed fortunes geographically Reflecting client ups and downs more than systemic issues H1 gross profit H1 operating profit H1 gross profit split US £4.34m + 27% £2.32m + 28% UK £2.87m - 2% £1.51m - 17% Brazil Continental Europe £2.10m + 30% £1.30m + 51% Asia Asia £0.62m - 10% £0.16m - 21% US Brazil
Slide 7: H1 cost increase in large part due to increase in bonus accrual
H1 2016 H1 2015 Growth H1 cost increase Normalised overheads Modest underlying cost increase in large part due £7.94m £7.58m 5% Cost growth pre-bonus slower than pre-bonus gross profit growth to increase in Bonus £0.77m - bonus accrual Capacity to scale several times Normalised overheads current siz
Slide 8: Strong cash flow and returning it to shareholders
Strong cash flow Cash Flow Returns to shareholders and returning it to shareholders High cash conversion Returned £2.21m to shareholders in • Pre-financing cash flow 77% of the period profit after tax • Dividends £0.45m • Share buy-backs £1.77m Finished the period with £5.18m cash and no debt Additi
Slide 9: Results Presentation | six months ended 30 June 2016
Feel more: Buy more. Results Presentation | six months ended 30 June 2016 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency