System1 Group Plc · LSE:SYS1
System1 — BrainJuicer — H1 2008 Earnings Presentation
21 slides from System1's earnings presentation, September 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 September 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 International online, full service market research agency S Innovative 2-in-1 research offer + reputation for unique research methods S Only agency to win industry’s ‘Best Methodology’ award twice in 20 years S Working with 19 of the top 200 global companies S International busi
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 MD UK MD CH MD NL MD US Jim Rimmer Mark Johnson Evert Bos Ari Popper S 12 years’ marketing and S 10 years’ marketing and S 20 years’ market research experience research experience S 10 years’ experience in research experience consumer insight and S Head of Market Researc
Slide 5: Where BrainJuicer Competes
Where BrainJuicer Competes 2006 = $25bn market Client Research Full Service Online Panel Needs MR solutions Provision 2006 % By Type 2006 % By Spend Strategic research Omnibus Consumer B-2-B Continuou Ad hoc Other Public Sector s N.B. ‘BrainJuicer’ logo is where the group operates not market share 6
Slide 6: Competitive landscape
Competitive landscape Market research is a $25 bn marketplace The BrainJuicer difference: Innovative 2-in-1 research approach delivering greater diagnostic insights Reputation for unique methods & twice winner of industry’s ‘Best Methodology’ Reputation as research leader in the difficult, ‘Fragile-
Slide 7: Growth of Market Research
Growth of Market Research Growth = 46% 3 Growth = 336% Annual compound 7% Annual compound 28% 20 2.5 2 15 US$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 8: 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 9: BrainJuicer Innovation… Juicy Products up by 47%
BrainJuicer Innovation… Juicy Products up by 47% S Insight Validator™ now used by 11 large clients S Predictive Markets ‘Best Methodology’ in 2005, grew 248% S CommScan™ ‘Best Methodology’ in 2007, grew 324% S Creative 6ers™ trialled by 4 multinationals Foundation Screening Evaluation Prediction Lau
Slide 10: FaceTrace 2007 winner 'Best Methodology'
FaceTrace™ 2007 winner ‘Best Methodology’ 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 11: Predictive Markets 2005 winner 'Best Methodology'
Predictive Markets 2005 winner ‘Best Methodology’ The Wisdom of Crowds: How the Many Can Be Smarter than the Few James Surowiecki (2004) X 596 Polls ¾ (1988 - 2000)
Slide 12: Creative 6ers adopted by Multinationals
Creative 6ers™ adopted by 5 Multinationals Head-to-Head Experiment Creative Current Process Sixers™ Brainstorming Use 50 ‘Creative 6’ers’ Use external NPD agencies generate 50 unique ideas + internal team brainstormings 2 weeks brief-to-debrief 2 months brief-to-debrief £14,000 for 20 ideas £40,000
Slide 13: Labs
Labs 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 Mobile
Slide 14: Interim Results 2008 – Financial highlights
Interim Results 2008 – Financial highlights S Revenue increased by 37% to £3,970,000 (H1 2007: £2,901,000) S Operating profit increased by 33% to £196,000 (H1 2007: £147,000) S EPS (diluted) increased to 1.2p (H1 2007: 0.9p) S All business units demonstrated strong performance: revenue grew by 246%
Slide 15: BrainJuicer Interim Results 2008
BrainJuicer Interim Results 2008 7 6 5 H2 Revenue £m 4 H2 3 H1 H2 H1 2 H2 H1 1 H1 H1 0 2003 2004 2005 2006 2007 2008 16
Slide 16: Operational developments
Operational developments S Solid relationships with key clients: Increased major client base to 19 of the world’s top 200 companies 72% of revenue from repeat business S Broadened geographic reach: US office now firmly established with revenues up 246% Expanded into Switzerland Entered int
Slide 17: Income Statement
Income Statement Six months Six months ended Year ended 31 ended 30 30 June December June 2008 2007 2007 Unaudited Unaudited Audited £’000 £’000 £’000 Revenue 3,970 2,901 6,566 Cost of sales (973) (733) (1,727) Gross profit 2,997 2,168 4,839 Administrative expenses (2,801) (2,021) (3,995) Operating
Slide 18: Balance Sheet
Balance Sheet 30 June 2008 30 June 2007 31 Dec 2007 Unaudited Unaudited Audited £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 187 89 119 Intangible assets 425 119 328 Financial assets – available for sale investments 85 - - Deferred tax 226 322 222 923 530 669 Current ass
Slide 19: Strategy for Growth
Strategy for Growth Innovation Mandates from the Largest global companies Size/Geography 20
Slide 20: 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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