Slide 1: Results Presentation | Twelve months ended 31 December 2016
Feel more: Buy more. Results Presentation | Twelve months ended 31 December 2016 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency
Slide 2: Leading exponent of behavioural economics and system-1 thinking
Leading Founded in 1999 exponent of behavioural Floated on AIM in December 2006 at £1.08 per share economics and system-1 thinking Track record of profitable organic growth and strong cash flow in marketing and research Operating in 10 countries 150 employees 200 large (mainly consumer goods) client
Slide 3: Top-line returned to growth after two slower years
Gross profit (£m) main top-line performance indicator 30 25 Revenue up 24% (15% in constant currency) Top-line returned 20 Gross profit up 27% (15% in constant currency) to growth after 15 10 Operating profit up 37% two slower years 5 Profit before tax up 38% 0 2009 2010 2011 2012 2013 2014 2015 201
Slide 4: Growth driven by core products, particularly Ad Testing and Brand Tracking
Product mix – gross profit £m Ad Testing & Brand Tracking Most of the business from our core 4 products Growth driven by Predictive Markets Building brands: Ad Testing, Brand Tracking core products, Innovation: Predictive Markets, Concept Testing Concept Testing particularly Ad Other Building brands
Slide 5: US growing well, and Continental Europe bounced back. UK down a little.
US growing well, and Continental Europe bounced back. UK down a little. Gross profit Operating profit US £10.89m + 40% £6.29m + 42% Gross profit split UK £6.23m - 7% £3.68m - 19% Australia Continental Europe £5.13m + 64% £3.07m + 89% Asia Brazil Asia £1.50m -% £0.72m + 28% US Brazil £1.28m + 12% £0.
Slide 6: Cost increase in large part due to increase in bonus accrual
2016 2015 Growth Cost increase in Modest underlying cost increase large part due to Underlying overheads £16.05m £15.12m 6% Cost growth pre-bonus well below gross profit growth increase in bonus Bonus £2.40m £0.06m accrual Capacity to scale several times System1 Advertising Agency £0.41m - current s
Slide 7: 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 £5.25m to shareholders Pre-financing cash flow £6.34m in the year (160% of profit after tax) Dividends £2.05m Share buy-backs £3.20m Finished the period with £7.75m cash and no debt 2016
Slide 8: Outlook … more of the same
Made good progress 2017/18 objectives Outlook … on 2016 objectives are similar more of the same Continue momentum in US ✔ (with less emphasis on Zappistore) Grow in other regions as in US ✔✖ Grow gross profit by more than headcount ✔ Major on core products ✔ Set up System1 Advertising Agency ✔ Exper
Slide 9: Results Presentation | twelve months ended 31 December 2016
Feel more: Buy more. Results Presentation | twelve months ended 31 December 2016 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency