Next 15 Group Plc · LSE:NFG
Next 15 — Shareholder Meeting (June 2016)
10 slides from Next 15's shareholder meeting presentation, June 2016
Slide 1: AGM – June 2016
AGM – JUNE 2016
Slide 2: Our core belief is that marketing is a technology driven activity
OUR CORE BELIEF IS THAT MARKETING IS A TECHNOLOGY DRIVEN ACTIVITY. OUR SUCCESS IS DIRECTLY PROPORTIONAL TO OUR UNDERSTANDING AND USE OF TECHNOLOGY TO SOLVE MARKETING CHALLENGES AND CREATE OPPORTUNITIES.
Slide 3: US Total Media Ad Spending Share, by Media, 2014-2020
US Total Media Ad Spending Share, by Media, 2014-2020 % of total 2014 2015 2016 2017 2018 2019 2020 Tv* 39.1% 37.7% 36.8% 35.8% 34.8% 33.7% 32.9% Digital 28.3% 32.6% 35.8% 384% 40.8% 43.1% 44.9% —Mobile 10.9% 17.3% 227% 26.2% 28.8% 31.0% 32.9% Print 17.4% 15.4% 13.9% 12.9% 12.2% 11.6% 11.1% —Newspap
Slide 4: Future View — Marketing Technology Map Revenue
Future View — Marketing Technology Map Revenue ($M) $35,000 $30,000 $25,000 - ~ - - - ™ Management and Admin $20,000 @ Content Prod/Mgmt $15,000 lm Data and Analytics $10,000 ™ Interaction systems $5,000 so T T an — 2014 2015 2016 2017 2018 Total Market Statistics: Total 2018 Revenue = $32.3B CAGR =
Slide 5: Market transition from analog to digital delivery is accelerating
• MARKET TRANSITION FROM ANALOG TO DIGITAL DELIVERY IS ACCELERATING • MARKETING TECHNOLOGY PLATFORMS ARE NOW CRITICAL CHANNELS/TOOLS – SOCIAL NETWORKS, APPS, MARKETING AUTOMATION, ANALYTICS • BRANDS ARE INCREASINGLY DEFINED BY THEIR ‘ONLINE EXPERIENCE’ WHICH IS DRIVING GROWTH OF CXM • OFFLINE AND ON
Slide 6: Invest in technology-driven marketing agencies
• INVEST IN TECHNOLOGY-DRIVEN MARKETING AGENCIES (DATA, CONTENT &TECH) • INVEST IN MARKETING TECHNOLOGIES • SIMPLIFY BUSINESS MODEL • FOCUS ON EXPANDING EXISTING RELATIONSHIPS WITH CURRENT CUSTOMERS
Slide 7: Customer logos (data as at Jan 2016)
NEXT 5 nA] Alphabet |x fo g RCI Schneider @ Electric XefOx @) aN » Bre INTUIT Slide 7 a solarwinds ” The Power to Manage IT U) NOVARTIS / AN ° BE Microsoft Adobe AIVIERICAN EXPRESS Data as at Jan 2016
Slide 8: Most Recent Results
MOST RECENT RESULTS • REVENUE UP 18.9% TO £129.8M (2015: £109.2M) • ORGANIC GROWTH UP 7.8% (H2 ORGANIC GROWTH OF 10.9%) • HEADLINE EBITDA UP 31.5% TO £19.2M (2015: £14.6M) • HEADLINE OP PROFIT UP 29.9% TO £16.5M (2015: £12.7M) • HEADLINE OP PROFIT MARGIN UP TO 12.7% FROM 11.7% • HEADLINE PRE TAX PRO
Slide 9: Portfolio
PORTFOLIO Technology Data Content Agent 3 Morar Text 100 Beyond Bite bDA Blueshirt Connections Media M Booth Encore OutCast Story Vrge Lexis Global ODD UK & US Publitek US UK Twogether Slide 9
Slide 10: Outlook
OUTLOOK • CONTINUE TO SEE GOOD ORGANIC GROWTH IN THE US THANKS TO MIX OF CUSTOMER QUALITY AND DIGITAL OFFERINGS • UK REMAINS ON TRACK TO DELIVER GOOD GROWTH AND IMPROVED MARGINS THANKS TO ACQUISITIONS • APAC CONTINUES TO IMPROVE AT TOP AND BOTTOM LINE • EMEA REMAINS FLAT BUT HAS RETURNED TO PROFIT A