Sorted Group Holdings Plc · LSE:SORT
Sorted — Location Sciences Group — H1 2018 Earnings Presentation
19 slides from Sorted's earnings presentation, Sep 5, 2018
Slide 1: Location Sciences Group PLC H1 2018 Review
LOCATION SCIENCES GROUP PLC H1 2018 REVIEW 5 September 2018 1
Slide 2: Agenda
LOCATION SCIENCES AGENDA Introduction … KPIs Update … CFO Update … CEO Update … Product Review Mark Slade … David Rae CEO CFO Market Opportunity … Q&A 2
Slide 3: Introduction
LOCATION SCIENCES INTRODUCTION “WE ARE A LOCATION DATA AND INSIGHTS BUSINESS” Our proprietary mobile We offer independent and This data powers our technology collects ultra- media-agnostic platform and products, precise, anonymised and measurement, verification enabling us to attribute and consented
Slide 4: 2018 KPIs on track
LOCATION SCIENCES 2018 KPIs ON TRACK Launch and monetise our 702k sales target 30 billion data points 2 new products 4
Slide 5: CFO Update
LOCATION SCIENCES CFO UPDATE • Revenue of £234,307 (H1 2017: £48,952) • Sales run rate of close to £50k per month and growing • Gross profit of £141,408 (H1 2017: nil), equating to a 60% gross margin • Administrative costs reduced by 45% to £1,273,841 (H1 2017: £2,323,574) • Raised £412,372 before e
Slide 6: Overheads under control
LOCATION SCIENCES OVERHEADS UNDER CONTROL* *excludes depreciation, amortisation, finance costs and restructuring expenses 6
Slide 7: Key overhead reductions
LOCATION SCIENCES KEY OVERHEAD REDUCTIONS Cost reductions from Q4 2017 to Q2 2018 are: • Personnel costs reduced by 52% • Office costs reduced by 75% • Legal and professional costs reduced by 70% • Infrastructure costs reduced by 60% • Further personnel cost reductions since 30 June 2018 • Overhead
Slide 8: Upwards sales trajectory
LOCATION SCIENCES UPWARDS SALES TRAJECTORY Q2 sales were impacted by GDPR implementation which reduced raw data sales – expected by management 8
Slide 9: Sales momentum in all product areas
LOCATION SCIENCES SALES MOMENTUM IN ALL PRODUCT AREAS • 2017 sales - raw data product only • Attribution largest growth product in period • Q2 2018 data sales impacted by GDPR (as expected) • Audience and insight product sales commenced in Q2 2018 • No verification sales in H1 2018 (as expected) • S
Slide 10: CEO Update
LOCATION SCIENCES CEO UPDATE • Lean and focused team • On track to complete the turn around • Real momentum across all our core products • All our products are now available self serve – building a scalable platform business • Verify is already proving to be a global opportunity • Run rate growth is
Slide 11: Online to Offline
LOCATION SCIENCES ONLINE TO OFFLINE Tracking the impact of digital adverts on driving visits to store • Our number one growth product in H1 2018 • Retail brands now demand reports • Huge operational efficiency gains • Significant R&D and learning • Increasing market traction and brand loyalty • Clie
Slide 12: Out of Home Advertising
LOCATION SCIENCES OUT OF HOME ADVERTISING Smarter out of home advertising planning and buying • OOH market has been flat at £1 billion for many years • Mobile location data is seen as a way of stealing share from digital • LS data is no. 1 in the market for scale, accuracy and GDPR compliance • LS d
Slide 13: Insights & Audiences
LOCATION SCIENCES INSIGHTS & AUDIENCES Insight reports through device location behaviour analytics • Significant demand from multiple sectors • In discussions with the main data business in the UK • POC and evaluation work completed • Dashboard delivering live actionable insights • Full SaaS offerin
Slide 14: Verify
LOCATION SCIENCES VERIFY Verification of mobile advertising location data • Tapping into the growth of location based advertising • Built to be globally scalable • Live in the UK market with three leading agency groups • Senior advisor in NY and activation plan for US market • Resellers in South Afr
Slide 15: Transactions in Verification
LOCATION SCIENCES TRANSACTIONS IN VERIFICATION Acquired by Oracle Acquired by Oracle Viewability Brand Safety $850m $300m Majority stake by Providence Equity Majority stake by Vista Equity Partners Viewability Brand Safety $300m valuation $850m valuation 15
Slide 16: Multiple Markets
LOCATION SCIENCES MULTIPLE MARKETS Out Of Home Help Apps Media Deliver Planning Digital Better Attribution Revenue Services Generating Gover’t Town Planning Planning Contracting Research Store Visit Companies Analysis Proof of Concept Store Ad Verfi- Opening / cation Closing Future Opportunities Ret
Slide 17: Summary
LOCATION SCIENCES SUMMARY Performance on track to meet market expectations … Costs under control … Real momentum across all our core products … Verify is already proving to be a global opportunity … The list of uses and opportunities for the data is endless 17
Slide 18: Disclaimer
LOCATION SCIENCES DISCLAIMER These presentation materials (the "Presentation Materials”) are being solely issued to and directed at (a) persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Servic
Slide 19: Contact Us
LOCATION SCIENCES CONTACT US Independent location measurement and verification. We offer ultra-precise location technology with highly valuable insights and analysis. Connect with us to find out more: hello@locationsciences.ai www.locationsciences.ai 19
Location Sciences Group — H1 2018 Earnings Presentation on 6ix