Slide 1: Results Presentation FY 2014 - making brands famous
Group PLC Results Presentation FY 2014 making brands famous For marketing with real precision You have to comprehend decision How we decide is the hidden key To understanding you and me
Slide 2: Summary
SUMMARY FY 2014 revenue performance was solid – growth held back by Juice Gen decline Profit up without sacrificing investment in growth Profit growth driven by core System 1 quantitative products Zero debt and strong cash position Consistent focus on shareholder value – and cash returns Continuing
Slide 3: FY 2014 results, Capital allocation, Outlook, Appendix
FY 2014 results Capital allocation Outlook Appendix - History - Key facts - Our research approach 3
Slide 4: Financial Results Group
FINANCIAL RESULTS GROUP Revenue (£m) 30 Revenue up 1% 25 H2 (5% in constant currency) 20 H1 15 Overhead costs down 3% 10 5 Operating profit up 21% 0 2007 2008 2009 2010 2011 2012 2013 2014 PBT up 21% Operating profit (£m) 4.5 PAT up 19% 4.0 H2 3.5 H1 3.0 Basic EPS up 19% 2.5 2.0 1.5 Diluted EPS up 1
Slide 5: Financial Results Segments
FINANCIAL RESULTS SEGMENTS Juicy vs Twist Revenue Juicy Twist Total Twist Quantitative research £17.61m £4.13m £21.74m 17% Juice Generation £2.39m - £2.39m Behaviour Change Unit £0.52m - £0.52m Juicy 83% Total £20.52m £4.13m £24.65m Growth Juicy Twist Total Behaviour Type of research Change Unit Qua
Slide 6: Financial Results Geography
FINANCIAL RESULTS GEOGRAPHY Gross profit Region Gross profit Operating profit Brazil Asia UK £6.81m - £4.82m - 2% UK Continental US £6.42m + 11% £3.70m + 32% Europe Continental Europe £3.45m - 14% £1.67m - 10% US China | Singapore £1.48m + 33% £0.74m + 52% India £0.22m + 58% £0.06m + 44% Operating p
Slide 7: Financial Results Cash Flow
FINANCIAL RESULTS CASH FLOW 2014 2013 Minimal Capex Operating cash flow £4.67m £5.34m Organic growth to date Tax paid £(1.24)m £(0.83)m Consistent cash flow Capex £(0.27)m £(0.05)m – Main difference year-on-year is staff bonus Cash flow before financing £3.16m £4.46m – Large 2013 bonus paid in 2014
Slide 8: Capital Allocation
CAPITAL ALLOCATION → We generate significant cash flow, and return surplus cash to shareholders → We endeavour to re-purchase our shares when share price warrants it & subject to practical issues → 1 2 3 4 Practical Liquidity 30% shareholder Share options Dividend consistency considerations → So: we
Slide 9: Outlook
OUTLOOK Moderate growth with upside optionality potential – Mandates – Broadening product base – Possible acquisitions to add complementary capability Continued strong cash flow Limited downside risk Differentiated positioning which is difficult to replicate Well positioned for long term sustainable
Slide 10: FY 2014 results, Capital allocation, Outlook, Appendix
FY 2014 results Capital allocation Outlook Appendix - History - Key facts - Our research approach 10
Slide 11: History
HISTORY 2000 2005 2010 to to to 2004 2009 2014 Founded company in 2000 Floated on AIM in 2006 Developed behavioural model – innovative online market Developed Predictive Markets Established Behaviour Change research and ComMotion consultancy Developed MindReader Established Juice Generation Moved in
Slide 12: Fact Sheet
FACT SHEET 13 offices in 10 countries UK (two), Switzerland, France, Germany, Holland, US (three), Brazil, Singapore, China, India 152 employees (average headcount) in 2014 Up 10% over 2013 955 projects delivered in 2014, average revenue per project £26,000 892 projects delivered in 2013, average re
Slide 13: Our Research Approach
OUR RESEARCH APPROACH We are unreliable witnesses to our own behaviour… 13
Slide 14: Our Research Approach
OUR RESEARCH APPROACH Because we think much less than we think … We are first and foremost emotional creatures, not thinking brains! 14
Slide 15: Our Research Approach
OUR RESEARCH APPROACH Our methodology is based on the latest developments in behaviour economics and design thinking. We uncover the underlying System 1 / emotional responses that matter. Research has historically Despite behaviour centered around asking science telling us people to (over) think… th
Slide 16: Our Research Approach
OUR RESEARCH APPROACH System 2 System 1 How we think that we How we really feel think most of the time: most of the time: Logical Intuitive Slow Fast Rule Based Emotional Tiring Effortless Considered Automatic 16
Slide 17: Our Research Approach
OUR RESEARCH APPROACH Truth is subjective and completely connected to context. Perspective is everything. 17
Slide 18: Our System 1 Research Approach
OUR SYSTEM 1 RESEARCH APPROACH Implicit Brand Predictive System 1 In-market Planning Markets Shelf Test ComMotion® Tracking Marketing Consulting NPD Pack & Promotion Advertising Performance → Brand → → Brand → Brand → Brand → → Brand X X X X X Brand Planning Mix Preparation In-market Tracking 18
Slide 19: For marketing with real precision
For marketing with real precision You have to comprehend decision How we decide is the hidden key To understanding you and me 19