Cm.com N.v. · EURONEXT:CMCOM
Cm.com — Investor Day (March 2020)
64 slides from Cm.com's investor day presentation, Mar 4, 2020
Slide 1: Analyst meeting 2020
Analyst meeting 2020
Slide 2: Today's Agenda
Today’s Agenda Finish Section Welcome CM.com: Shaping the future of Conversational Commerce Client cases Technology and market opportunity FY2019 annual results Presenters Jeroen van Glabbeek Gilbert Gooijers Jan Saan Jeroen van Glabbeek Coffee Break Growth Strategy Global Expansion HR expansion str
Slide 3: CM.com: Shaping the future of Conversational Commerce
CM.com: Shaping the future of Conversational Commerce By Jeroen van Glabbeek, CEO
Slide 4: CM.com overview
CM.Com overview (eh © 1999 Breda, 16 Founded Netherlands Offices Headquartered globally EUR 96.3m 113.0% Revenue CPaaS net dollar 2019 retention rate 2019 Integrated Offering '6@ @6© @ 6! I Payme Identit Ticketi Sign I I nts = g I l Messagi Voice l l ne l I i) I I Customer Data I Enabling tefwersati
Slide 5: Global Platform For Conversational Commerce
Global Platform For Conversational Commerce Enterprise Consumers Messaging Voice o,", Payments Platform Features
Slide 6: Consumer Engagement Across Functions Has Shifted To Mobile
Consumer Engagement Across Functions Has Shifted To Mobile... Traditional Retail Digital Transformation Conversational Commerce Marketing Service fom) CM.com
Slide 7: What We Offer: A One-Stop-Shop Solution For Mobile Customer Engagement
What We Offer: A One-Stop-Shop Solution For Mobile Customer Examples Of: Engagement Description Network Partners Revenue Model Messaging Channel Agnostic communications, from SMS and Email to Over-The-Top (OTT) communication services and multi- channel messaging, all of which can be connected via a
Slide 8: Evolution Of Technology Has Led To A Convergence Of Messaging And Payments
Evolution Of Technology Has Led To A Convergence Of Messaging And Payments: The Birth Of Conversational Commerce @ Conversation al Commerce Channels Opened Up For Businesses, Which Has Been The Stepping Stone For CM.com, As Companies Benefit From CM.com’s Medium-Agnostic Communications And Payments
Slide 9: CM.com Is Amongst The Front Runners With Strategic Partnerships
CM.com Is Amongst The Front Runners With Strategic Partnerships With The Most Relevant Global OTT Players 1 of 3 parties worldwide with direct partnerships with WhatsApp Business, Apple Business Chat, and Google RCS Only party that also offers integrated payment solutions fom) CM.com (D Facebook and
Slide 10: Diversified Top-Tier Customer Base With A Strong Recurring Nature
Diversified Top-Tier Customer Base With A Strong Recurring Nature Strong Track Record Of Winning... Large customers of CM.com Tencent BA EDAlibabacom > ACCORHOTELS .. And Retaining Customers... 113% CPaaS net dollar retention rate 20199 4.2% CPaasS churn rate 2019 .. With Low Customer Concentration.
Slide 11: Highly Experienced, Founder-Led Management Team
| Highly Experienced, Founder-Led Management Team Supported By An Experienced, Talented And Structured Organization e Jeroen van Glabbeek CEO / Co-Founder Gilbert Gooijers COO / Co-Founder fom) CM.com Jan Saan cTO Judith Wouters Head of Finance Peter van Wely CRO Marijn Helmons Head of HR 2, &. \ fh
Slide 12: CM.com appoints Jorg de Graaf as CFO
CM.com appoints Jorg de Graaf as CFO iBasis: 2019: € 1 billion revenue 300 employees HQ in Boston Worldwide 18 offices J6érg de Graaf (Dutch, 1976) Many years of financial leadership experience and a proven ability to operate successfully in the US and international markets Starting at 20 April 2020
Slide 13: Supervisory Board
| Supervisory Board 3333 MARTIN LEX (WALTER) DIEDERIK DAVID MARIKEN STEPHAN VAN PERNIS BEINS KARSTEN DE BUCK TANNEMAAT NANNINGA Chairman of the Member of the Member ofthe Vice Chairman/ Memberofthe Member of the Supervisory Supervisory Supervisory Member of the Supervisory Supervisory Board Board Bo
Slide 14: Client cases
Client cases: # The Tech behind By Gilbert Gooijers, COO
Slide 15: #TheTechBehind
CM.com #TheTechBehind
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Slide 17: BMW Navigation
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Slide 18: #TheTechBehind Cordaid
Slide 19: #TheTechBehind Emirates Post
TheTechBehind Emirates Post (@) CM.com
Slide 20: #TheTechBehind Emirates Post
#TheTechBehind Emirates Post () CM.com Emirates Post Please enter the AWB number (13 alphanumeric code) you want to track: RR290000015A2 No updates available or AWB is wrong Thank you for contacting Emirates Post , for any additional inquiry, you can Call us at our customer contact center number , S
Slide 21: Technology and market opportunity
Technology and market opportunity By Jan Saan, CTO
Slide 22: CM.com's Platform Is Built On The CM.com Cloud
CM.com’s Platform Is Built On The CM.com Cloud, A Scalable And Global Private Cloud Platform Partners Global CM.com Cloud CDN-Web Security 2, CLOUDFLARE Colocation Boreom a — interxio : EQUINIX Private Cloud ) Components ee, vmware Juniper i 2 D&ALL NETSCOUT. BE] 2700+ virtual 10gig Internet servers
Slide 23: System, Service And Security Monitoring
System, Service And Security Monitoring Availability Audited And Certified 24/7 monitoring of external Security-by-design and internal threats and owning software & services infrastructure Policies and procedures in place in CM.com’s security framework
Slide 24: Setting The Scene: Conversational Commerce
Setting The Scene: Conversational Commerce Communication And Payments Converge, Giving Enterprises The Opportunity To Service Consumers In A Mobile, Data Driven And Personalized Way “By 2020, 15% of all Apple users “9 billion communication with brands consumers are on ° ° . messaging” will be via th
Slide 25: Conversational Commerce Addresses Attractive, High Growth Niches
Conversational Commerce Addresses Attractive, High Growth Niches In Large Established Markets Total Global Communications Market: Mobile Messaging Total Global Payments Market: Gross Merchandise Sales Conversational commerce focuses on the global CPaaS market Conversational commerce focuses on the O
Slide 26: Communications Market: CPaaS Enterprise Market
Communications Market: CPaaS Enterprise Market Key Drivers & Trends CPaaS resolves several issues with in-house developed applications v v v v Capex to opex: Pay-as-you-go: Ability to Channel Replaces Consumption underwrite key agnostic: Target underutilized, driven market trends customers via : exp
Slide 27: Payments Market: OEM Payments Market
Payments Market: OEM Payments Market Key Drivers & Trends More efficient and secure than traditional payment options v v v Removes need for More convenient, Improved customer physical payment faster & more experience: Need to means such as secure check-out switch between apps card or paper is remove
Slide 28: Communication Channels & Payment Solutions Increasingly Cater To Enterprise Expectations
Communication Channels & Payment Solutions Increasingly Cater To Enterprise Expectations === |B (o) amis (9) Dineen Verified: Sender and brand name verification Interactive: Two-way communication Rich: Pictures, videos and buttons tickets
Slide 29: Adoption Of Business APIs In OTT Channels
| Adoption Of Business APIs In OTT Channels Facilitate Access To Their Large And Growing User Bases Monthly Active User Bases eg o WhatsApp Facebook Instagram WeChat 1.5bn Messenger 1.0bn 989m 1.3bn Tencent QQ Skype Snapchat Line 783m 300m 187m 168m fom) CM.com Source: Juniper, “Mobile Messaging 201
Slide 30: Integration Of Various End Markets And Technological Advancements
Integration Of Various End Markets And Technological Advancements Further Drive The Adoption And Growth Of Conversational Commerce e Adoption of Artificial Intelligence, bots and automation “85% of customer interactions will be managed by automation in 2020” - Gartner’ 1) Gartner Customer 360 Summit
Slide 31: Significant Market Opportunity
Significant Market Opportunity Global eCommerce sales to reach USD 5.6 trillion by 2022, representing 20% of total retail sales - eMarketer” fom) CM.com 1 eMarketer, “Global eCommerce 2019" 2) Gartner Customer 360 Surnmit “By 2022, mobile eCommerce sales are expected to account for 54% of total eCom
Slide 32: FY2019 annual results
FY2019 annual results By Jeroen van Glabbeek, CEO
Slide 33: 2019 Business Highlights
2019 Business Highlights As one of the few parties worldwide, CM.com can offer WhatsApp Business, Apple Business Chat and Google RCS from a single platform OTT, especially WhatsApp Business, gaining traction as of Q4 2019 The large increase of Platform revenue generated mainly by successful Ticketin
Slide 34: High And Consistent Top Line Growth
High And Consistent Top Line Growth... CPaaS + Payments + Platform Other? 86 EURm EURm 72 2019 growth 63 rate 21% ‘Total (H2: 32%) 46 o Platform 2, (H2: 29%) 33 3) Payments 29} ‘H2: 4! 20 C2: 45) 2 7 16> 13 CPaaS: 7 (H2: 35%) 5 | 2011 «2012. «2013. 2014.Ss« 2015's 2016-=S 2017, 2018” 2019 2011 2012
Slide 35: On The Back Of A Strong Underlying KPI Development
... On The Back Of A Strong Underlying KPI Development Messages) (# billions) Voice Minutes” (# millions) 1p 141 1.7 mika 2016 2017 2018 2019 2016 2017 2018 2019 Total Payments Processed» (EURm) a . + Solid increase of messages due to focus on new customers, new regions, and new message channels lik
Slide 36: CM.com's Gross Margin to improve as growth will come from high margin segments
CM.com’s Gross Margin to improve as growth will come from high margin segments Other * Mainly Premium SMS and Carrier Billing, expected to decrease over time 22% 25% 25% 22% EURM 2016 2017 2018 2019 CPa * Focus on increasing volume and revenue in 2019 + Price reductions in 2018 and 2019 impacted gro
Slide 37: FY2019 Profit And Loss Accounts
FY2019 Profit And Loss Accounts [> _Gross Profit” 24.1 25.0 Revenues 96.3 84.6 14% Employee benefit cpaas 7" = expenses (13.2) (14.2) Paa 76. 1 22% i vanesng and sales (1.9) (2.3) Payments 5.5 58 (5)% Other operating 2 (5.0) (5.3) Platform 5.0 3.6 40% expenses Opex” (20.2) (20.7) Other 9.8 13.2 (26)
Slide 38: Pro forma Balance sheet
Pro forma Balance sheet ASSETS Goodwill Intangible Assets Property, plant and equipment Right-of-use assets Longterm receivables Deferred tax assets Total Non-current Assets Trade and other receivables Cashand cash equivalents Total current assets TOTAL ASSETS: EQUITY & LIABILITIES Issued and paid-u
Slide 39: FY2019 Cash flow statement
FY2019 Cash flow statement Operating profit Adjustments for: Other operating income Amortisation and depreciation Changes in provisions Changes in working capital: Trade and other receivables Trade and other payables Interest received Corporate income tax paid Cash flow from operating activities Inv
Slide 40: Growth strategy
Growth strategy By Gilbert Gooijers, COO
Slide 41: • • • • • • – – • – – • – –
• • • • • • – – • – – • – – – • • • • • • • • • •
Slide 42: Maintain Strong Focus On Customer Retention And Upselling
Maintain Strong Focus On Customer Retention And Upselling Maintain Strong Existing Customer Retention Invest In Sales Capacity Across Existing And Global Marketing Efforts Enhance Pricing Strategy Nurture existing fast growing customers, enabling CM.com to grow alongside them Expand current support
Slide 43: Continued Product Innovation To Drive Customer Growth And Platform Adoption
Continued Product Innovation To Drive Customer Growth And Platform Adoption CPaaS Payments Platform Features s Shift towards OTT channels in Web Checkout Solution © One-stop-shop approach allows addition to traditional SMS 7 7 CM.com to rapidly break into offering enables: + Improve onboarding and c
Slide 44: CM.com's Platform Caters To Cross Selling Relevant Additional Features
CM.com’s Platform Caters To Cross Selling Relevant Additional Features To Existing Customers While using the platform, customers will be actively encouraged to engage in new product trials that may suit their needs Majority of new features can be easily integrated with existing product portfolio thr
Slide 45: Build On Partnerships With Resellers
Build On Partnerships With Resellers Independent Software Advisory Firms Telco Partners OTT Partners Vendors Independent Software Vendors Advisory firms that have CM.com believes that CPaaS CM.com believes that OTT with a sales component that access to and relationships offerings are a natural provi
Slide 46: Strong Global Presence With A Proven Expansion Track Record
Strong Global Presence With A Proven Expansion Track Record Successfully Opened Regional And Local Offices In 8 Countries In 5 years © Headquarters @ Regional Offices @ Local Offices fom) CM.com CM.com expanded to 12 countries in approximately 5 years through setting up local and regional offices On
Slide 47: M&A Strategy Focused On Acquiring New Customer Bases
M&A Strategy Focused On Acquiring New Customer Bases Clearly Defined M&A Process Acquisition Target Dimensions Strategy focused on acquiring new customer bases as an alternative to organic customer acquisition CM.com is an acquirer with a selective process: Geographies - Established database of acqu
Slide 48: Global Ticket
Global Ticket Market leader in the field of ticket solutions in the Benelux + Global Ticket Museums, attractions, zoos and other cultural institutions Solid market position in the Netherlands, Belgium, Spain, and South Africa Customers include Van Gogh museum, Heineken Experience, Toverland, Gaiazoo
Slide 49: Global expansion
Global expansion By Hodny Benazzi, General Manager International
Slide 50: Address Global Demand Locally, Through Hub-Based Expansion
Address Global Demand Locally, Through Hub-Based Expansion Approach Global expansion driven via regional hubs, accelerating customer growth through local presence - every hub is a gateway to a set of surrounding countries Clearly defined and tested hub roll-out process: 1. New local team consisting
Slide 51: Targeted Using Three Different Go-To-Market Strategies
... Targeted Using Three Different Go-To-Market Strategies Strateay 3 = G = 6 is ° cc) Target Companies Sales Approach Global Marketing (Public Relations, Sponsoring, Conferences & Trade Shows And Online Marketing) Global Sales Pods * Global Sales Pods operating from HQ with the focus on targeting e
Slide 52: Successful In Winning New Customers
Successful In Winning New Customers... Innovative Products Local Presence Attractive Pricing Global Coverage All-In One Solution Security & Compliance CM.com @ oO .0..0,.0,,0,.0 Constantly investing in new product development (capex 6% of sales in 2019) SOCIETE Customers value innovation and new fea
Slide 53: The Local Office In France As Illustrator Of The International Success
The Local Office In France As Illustrator Of The International Success Of CM.com Key Highlights Of CM.com’s Strong Track Record In France Strong Historic Revenue Development In France EURm 15 14.3 @ In 2014, the French market was lacking a similar product offering v 10 (Cf At that point the market w
Slide 54: HR expansion strategy
HR expansion strategy By Marijn Helmons, Head of HR
Slide 55: Grow And Transform The Organisation To A Market-driven Global Company
Grow And Transform The Organisation To A Market-driven Global Company * Expand global footprint by opening local and regional sales offices worldwide * Build Central Sales Pods with focus on product-market combinations * Maintain our lead on innovation with strong R&D division * Agile administrative
Slide 56: Execution on Growth Plan
Execution on Growth Plan * On track with recruitment plan for 2020 Q1 Execution in 2020 700 600 400 Sales & Marketing 85 23 27% 300 Research & | Development 32 7 22% 200 General & 100 Administration 15 5 33% ° 2019 2020 2021 2022 Total 132 35 27% Gen and Admin = Research and Development ™Sales and M
Slide 57: What Makes CM.com Unique According To Our Employees
| What Makes CM.com Unique According To Our Employees Q rae ) - F + Teamwork Care/CSR Product Culture Celebration Work in small and self- We take care of our Develop and/or sell Inspiring, diverse, and Work hard, play hard managed teams, open employees, society and _ innovative products to inclusive
Slide 58: 2020 HR Focus
2020 HR Focus Talent Acquisition * Meet-ups with inspirational speakers at CM Campus * Strong Ties with neighboring universities * Network of international recruitment firms that support our journey * Our employees are our best promoters * PR: Expand awareness of our brand CM Academy @ CM Campus * O
Slide 59: Use of Proceeds and Outlook
Use of Proceeds and Outlook By Jeroen van Glabbeek, CEO
Slide 60: Equity Capital Specifics
Equity Capital Specifics Following The Listing Of CM.com * Capital raised: € 73 million * Total number of shares outstanding: 26,259,854 * Market capitalisation: approx. € 340 million * Ticker: CMCOM * Euronext Amsterdam Substantial shareholders: Jeroen van Glabbeek*: 29% Gilbert Gooijers*: 29% Tesl
Slide 61: Growth Acceleration Strategy
Growth Acceleration Strategy * Listing was natural next step in CM.com’s evolution v Gives access to capital to support acceleration of growth v Significantly enhances the company’s profile Expected Use of Proceeds Current annual investments Additional (without proceeds of listing) investment over c
Slide 62: Guidance
Guidance fom) CM.com Revenue Growth Revenue growth is expected to significantly step-up from 2020, and CM.com is targeting an annual growth rate of over 30% in the medium term, as CM.com increases its sales, marketing and technology efforts with new and existing customers globally with the capital r
Slide 63: Demo
Demo By Colinda Leemans, Data Consultant
Slide 64: Forward Looking Statements
Forward Looking Statements Statements included in this presentation that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forwa