Ebiquity PLC · LSE:EBQ
Ebiquity — FY2011 Earnings Presentation
37 slides from Ebiquity's earnings presentation, July 2011
Slide 1: Final Results Presentation, Year ended 30 April 2011
Final Results Presentation Year ended 30 April 2011 July 2011 an Ebiquity company
Slide 2: Review of the year
Review of the year Year ended 30 April 2011 2
Slide 3: Strong financial performance delivering revenue up 108%
Strong financial performance delivering revenue up 108% with operating profit doubling to £ • International revenues now represents 71% of total Group revenue (2010: 38%) • Underlying operating profit of £5.3m (2010: £2.6m) • Underlying profit before tax of £4.8m (2010: £2.3m) • Underlying EPS of 6.
Slide 4: Further acquisitions build international growth
Further acquisitions build international growth • Integration of Xtreme Information completed ahead of schedule and below budget • Ebiquity Germany, following acquisitions, now represents 13% of total worldwide revenue • US business grows at over 40% as media transparency becomes increasingly import
Slide 5: Business continues to evolve to capitalise on global demand
Business continues to evolve to capitalise on global demand • Acquisition of Echo Research Group adds “earned” and “social” media to offering • Business drivers continue to be positive despite economic uncertainty • Ebiquity restructured into clearly defined offerings • New data processing centre in
Slide 6: New data processing centre
New data processing centre ° oa “ | (le
Slide 7: Drivers
ney DUODITINSS Drivers Efficiency Procurement tl Globalisation Transparency Effectiveness
Slide 8: New business structure to reflect new capabilities
New business structure to reflect new capabilities Practice Advertising Intelligence Media Effectiveness Digital Reputation & PR Media Technology 8
Slide 9: Greater geographic reach
Greater geographic reach 9 9
Slide 10: Echo: New skills for a new world
Echo New skills for a new world 10
Slide 11: Managing and measuring business performance
Managing and measuring business performance Organisational Offline Changes Media Digital/Social Media New Product Development Sponsorshi p Reputati Economy on Business Performa Seasona nce lity In-house Retail Media Environment Competitor Regulatory Advertising Environment Promotio Price ns 11
Slide 12: Ebiquity's unique capabilities
Ebiquity’s unique capabilities Brand reputation and performance measurement “Paid Media” “Unpaid Media” Outbound Customer Business Performance Messaging Empowerment 12
Slide 13: Redefining the media landscape
Redefining the media landscape 13
Slide 14: Echo Research staff, offices and awards
50 staff + 200 analysts Offices in London, Paris, New York and Singapore Member of UN Global Compact Winner of 89 Industry Awards, including Platinum & Golds for Integrated Research all Echo research complies with the MRS Code of Conduct, ESOMAR, CASRO & ISO 9000:2001 14
Slide 15: Monitoring Social Media
15 Monitoring Social Media ‘ONLINE NEWS | SOCIAL MEDIA | COMBINED Dashboard Dashboard Dashboard R= vmware’ Search results Set default parameters | Report summary | User guide | LOG OUT Results for ‘Gordon Brown’ From: 00/00/0000 To: 00/00/0000 Primary search: VMWare Search content cnange me paramete
Slide 16: Identifying source and trends
Identifying source and trends 16
Slide 17: Echo Reputation Scorecard
17 echo REPUTATION SCORECARD vmware Social Media Buzz Media Analysis - Leading Mesa Competitor Share of Voice [nr ~~ *TUUTTDTEUIETUAAETETE Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Nam nibh. Nunc varius facilisis eros. Sed erat. In in velit quis arcu ornare laoreet. Curabitur adipisc
Slide 18: Ebiquity / Echo Suite of Services
Ebiquity / Echo Suite of Services Is my brand recognition Who are my increasing in the Am I getting customers and marketplace? the most out what motivates What is the of my media them? Is my target impact of spend? What are their market aware my media of our Can I spend media How do I take What’s sp
Slide 19: Outlook
Outlook 1. Our role as an independent provider of insights, based on the clear analysis of available data, will continue to grow in importance 2. We expect continued strong performance from our overseas offices 3. We will continue to build our business internationally in line with our clients’ needs
Slide 20: Financial Summary
Financial Summary Year ended 30 April 2011 20
Slide 21: Revenue
Revenue Revenue increase of 108%...Comfortably in line with expectation 2011 2010 £’000 £’000 Var Analytics 17,900 15,197 18% Platform 26,265 6,021 336% Total 44,165 21,218 108% 21
Slide 22: Revenue: a more international service
Revenue A more international service International revenue: non UK sourced revenue, or UK sourced revenue where marketing activity is analysed in more than one country 22
Slide 23: Revenue: a more balanced offering
Revenue A more balanced offering 23
Slide 24: Gross margins
Gross margins Positive impact of acquisitions and synergies implemented earlier than planned 2011 2010 Analytic 54% 56% s Platform 57% 51% Total 56% 55% Total gross profit £24,799k (2010: £11,598k) 24
Slide 25: Underlying operating profit
Underlying operating profit Positive impact of acquisitions and early synergy release 2011 2010 £’000 £’000 Var Analytics 7,123 7,603 (6)% Platform 7,739 1,284 503% Central (9,564) (6,244) (53)% Total 5,298 2,643 100% 25
Slide 26: Underlying operating margin
Underlying operating margin Lower than last year as forecast, but ahead of expectation 2011 2010 EBITDA 14.6% 15.0% Operatin g profit 12.0% 12.5% (EBIT) 26
Slide 27: Highlighted items
Highlighted items High planned non-recurring integration costs to release significant cost synergies 2011 2010 Cash Non cash Total Total Recurring: Share based expenses 1,038 1,038 308 Amortisation of purchased 1,549 1,549 412 intangibles - 2,587 2,587 720 Non recurring: Integration costs 1,550 1,55
Slide 28: Profit before tax and EPS
Profit before tax and EPS Impact of significant planned restructuring costs on reported result… strong EPS growth 2011 2010 £’000 £’000 Var Underlying operating result 5,298 2,643 100% Highlighted items (6,546) (2,186) Reported operating result (1,248) 457 (373)% Net finance costs (528) (352) Share
Slide 29: Financing analysis
Financing analysis £2.25m of available facility¹ As at Year ended As at 1 May 30 April 2011 30 April 2010 2011 Drawn Repaid Term loan 7,975 (2,040) 5,935 Revolving credit facility 1,750 1,750 Acquisition fund - Gross debt 7,975 1,750 (2,040) 7,685 Cash 5,243 3,158 Loans to associates² 285 - Net debt
Slide 30: Financial summary
Financial summary Significant increases on prior year, and ahead of all market expectations • Significant increase in company size • Strong international growth • A more balanced mix of global services • Cost synergies delivered early • Conservatively financed • Comfortably ahead of all market expec
Slide 31: Financial Appendices
Financial Appendices 31
Slide 32: Appendix: Summary of results
Appendix: Summary of results Significant increases on prior year, and ahead of all market expectations Year Market Expectation Year ended ended Revised Original 30 April 30 April published published 2011 2010 19/1/11 23/7/10 Revenue 44,165 43,100 41,900 21,218 Underlying operating profit 5,298 4,900
Slide 33: Appendix: Acquisitions during the year
Appendix: Acquisitions during the year Continued global expansion Billetts Media Buro CP Total Germa Advisor Germany ny Italy Acquisition date 1 May 2010 28 May 2010 1 November 2010 Acquisition detail Increased 51% Trade and stake from acquisition assets 10% to 51% purchase Segment Analytics Analyti
Slide 34: Appendix: Transactions post year end
Appendix: Transactions post year end Improved client offering Acquisition of Acquisition of Disposal of Echo Research Joined Up Newslive Group Media Company Nature of business Global reputation Media auditing Editorial monitoring analysis, media in Russia and CEE in the UK measurement, stakeholder r
Slide 35: Appendix: Statement of financial position
Appendix: Statement of financial position 2011 2010 Non current assets Goodwill 31,457 30,235 Purchased intangibles 8,350 9,291 Other 4,247 3,418 44,054 42,944 Current assets Trade debtors 10,143 8,300 Accrued income 2,130 923 Cash 3,158 5,243 Loans to associates - 285 Bank security deposits 200 300
Slide 36: Appendix: Cash flow statement
Appendix: Cash flow statement 2011 2010 Cash generated from operations 1,430 3,243 Finance expense (365) (271) Income taxes paid (757) (551) Net cash from operating activities 308 2,421 Investing activities Acq’n of subsidiaries, net of cash acquired (898) (326) Purchase of PPE (1,260) (164) Capital
Slide 37: Appendix: International revenue
Appendix: International revenue International revenue¹ doubled to 71% of group revenue (2010: 38%) 38% multi territory contracts (2010: 27%) US domestic Mainland Europe 15% (2010: domestic 11%) 14% (2010: nil) AsiaPac domestic 4% (2010: nil) ¹ International revenue: non UK sourced revenue, or UK sou