Hi-Media SA — Investor Presentation (March 2017)
40 slides from Hi-Media SA's investor presentation, Mar 16, 2017
Slide 1: Hi-Media Group: advertising & user experience
himediagroup™ (f HOW advertising & user experience
Slide 2: In 2016: 3 market key issues
In 2016 : 3 market key issues USERS PUBLISHERS ADVERTISERS increasingly tend struggle with challenge digital to reject ads low advertising revenues ad efficiency 2
Slide 3: In 2017 the ad market must focus on improving UX
In 2017 the ad market must focus on improving UX Stronger interest in ads Better user Less experience adblocking Increased Better ROI for revenue for advertisers publishers 3
Slide 4: Our solutions to address the digital ad market's issues
Our solutions to address the digital ad market’s issues 4
Slide 5: AdUX solution #1: Native advertising
AdUX solution #1: Native advertising AdUX SOLUTION ADVERTISER USER Storytelling at scale No disruption 5
Slide 6: What genuine Native is about
AdUX solution #1: Native advertising Non Interruptive 100% Visible integrated in the content stream What genuine Native is about Editorialised and informative Fully matching any sites look&feel Dedicated to one unique advertiser 6
Slide 7: Product and Formats
Product and Formats DESKTOP MOBILE TEASER VIDEO User is exposed Integrated teaser with no Video content integrated to an integrated teaser downloading time lapse with 100% viewability 7
Slide 8: A growing reach, close to 1500 publishers
A growing reach, close to 1500 publishers 7m UU/day 3m UU/day FRANCE ITALY Volumes : 1B imp./month Volumes : 200m imp./month 600 websites 175 websites 0,5m UU/day 0,5m UU/day 11m BELGIUM SPAIN UU/Day Volumes : 200m imp./month Volumes : 50m imp./month 35 websites 100 websites Partnerships : 4m UU/day
Slide 9: A capacity to grow paneuropean
A capacity to grow paneuropean Pan EU Native Campaign on 8 countries Brief Geo : FR, IT, SP, UK, DE, BE, NL, GR Period : end of May to mid August 2016 Budget : 650k€ Generate Brandlift and Traffic on Michelin’s website Solution & results 100% Native placements and creatives Several sets
Slide 10: An expertise recognized by the market
An expertise recognized by the market 10
Slide 11: AdUX solution #2: Geo marketing
AdUX solution #2 : Geo marketing AdUX SOLUTION ADVERTISER USER Location based Upside as multichannel consumer user insights 11
Slide 12: Product: Drive to Store and cluster targeting
Product : Drive to Store and cluster targeting A Powerful Premium Network Offering brand safety 1 Billion Monthly ad requests 28 Million Montly Unique Users Unique geodata Clusters On demand Precise GPS diffusion The unique French Network certified 12
Slide 13: Drive to store solutions for retailers
Drive to store solutions for retailers Customers only visiting one store Customers visiting one store & its competitors Customers catchment area and visiting the competitors 13
Slide 14: Geodata for a better knowledge of customers
Geodata for a better knowledge of customers A real focus on the consumer journey for a better storytelling with your advertising 14
Slide 15: Agregated geodata to build profile clusters
Agregated geodata to build profile clusters Décideurs Culture Automobile Business Commuters 1.4M 13.5M 5.6M 6.5M 12.6M Famille & Mode & Santé & Education Parents Beauté Food & Drink Fitness 11M 1.2M 5.4M 7.6M 9M Maison & Jardin Shopping Sport Hi-Tech Voyage 2.7M 3.2M 12.6M 6.8M 3.6M 15
Slide 16: Example: automotive
Example : automotive 5.6m Mobile ID each month POI Car dealers, Gas station, Automotive repair stands Target group 24-54 year old Car Owners Interested to purchase a new car 16
Slide 17: AdUX solution #3: Engagement
AdUX solution #3 : Engagement AdUX SOLUTION ADVERTISER USER User Social engagement Publishing 17
Slide 18: Ads involving User Engagement: business case of social publishing
Ads involving User Engagement Business case of social publishing 18
Slide 19: Ads involving User Engagement
Ads involving User Engagement 19
Slide 20: Ads involving User Engagement
Ads involving User Engagement 20
Slide 21: Ads involving User Engagement
Ads involving User Engagement 21
Slide 22: Engagement KPIs
puis 1000 = 25M articles videos viewed on Facebook social interactions social interactions per article in average 100M cumulated contacts
Slide 23: An increasing scope
An increasing scope Diversification of brands Social reach of 6M users cumulated Growing international in 2018 23
Slide 24: Financials 2016
Financials 2016* *Figures closed by the Hi-Media SA board of directors on 14 March 2017. The annual and consolidated financial statements have been audited and the corresponding certification report is being prepared. The annual report on the financial statements closed on 31 December 2016 will be a
Slide 25: Financial Highlights - 2016 target reached
Financial Highlights - 2016 target reached In €M 2016 2015 Var. Sales 59,2 64,7 (5,6) Gross profit 26,8 19,4 7,5 EBITDA 1,1 (10,4) 11,5 Operating profit (0,7) (38,8) 38,1 Net income (1,3) (40,3) 39,0 Net income - Group share (1,1) (39,7) 38,6 Dynamics of 57% of revenues Back to growth businesses gen
Slide 26: Growth businesses keep a strong dynamism and generate more than 50% of revenues
Growth businesses keep a strong dynamism and generate more than 50% of revenues + 321% €30M in 2016 vs. €17M in 2015 • Double digit growth per quarter 10.5 (2016 vs 2015) 7.6 6.8 6.8 4.2 5.6 • + 75% growth in 2016 vs 2015 4.0 2.5 • Double digit growth per quarter Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Slide 27: Consolidated revenue will grow in 2017
Consolidated revenue will grow in 2017 • The consolidated activity is about to be stabilized* Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 -3% -5% -11% -13% -12% -15% -15% -21% • 2017 topline will increase o Thanks to the increasing weight of growth businesses in the revenue mix on a FY basis o T
Slide 28: Gross margin are stabilizing at a healthy level
Gross margin are stabilizing at a healthy level €27M FY 2016 vs. €19M FY 2015 50 % 46 % 41 % 40 % 39 % 43 % 39 % 40 % Legacy 30 % Legacy business around 40% / 42% Business 20 % 17 % 10 % - 2% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 70 % 60 % 61 % 52 % 47 % 52 % 49 % 50 % Growth 40 % 48 % 45
Slide 29: Consolidated costs are under control
Consolidated costs are under control €26M FY 2016 vs. €30M FY 2015 -€4M -14% Strong reduction of the cost 35,0 structure : 30,0 2,4 • €-4M (-14%) between 2016 & -€0,4M (-19%) 2015 25,0 2,0 8,9 20,0 6,9 -€2M (-22%) • Direct costs (adserving/hosting) have been decreased by -€0,4M (-19%) 15,0 -€1,6M (-
Slide 30: Headcount has been optimized and the workforce is scalable
Headcount has been optimized and the workforce is scalable at reasonnable cost 236 people in 2016 vs. 251 people in 2015 • A strong reduction in the global headcount • IT and backoffice teams have been organized in lower labour cost countries 330 251 Deployement of Quantum and 236 • Admoove in new g
Slide 31: Return to profitability with positive EBITDA for the full year 2016
Return to profitability with positive EBITDA for the full year 2016 0,3 1,5 1,1 0,0 -0,7 2016 target reached : Positive EBITDA -10,4 €1.1M FY 2016 vs. -€10,4M FY 2015 FY 2015 Q1 16 Q2 16 Q3 16 Q4 16 FY 2016 31
Slide 32: Cash Flow synthesis
Cash Flow synthesis M€ H2 2015 H1 2016 H2 2016 Cash - period start 15.5 7.4 5.2 Cash from operations -5.9 -4.9 -1.3 Cash from investment activities -2.2 +2.7 +1.8 Current -0.8 -0.6 -0.8 Non current -1.4 +3.3 +2,6 Cash - end of the period 7.4 5.2 5.7 • Working capital: substantial decreasing over the
Slide 33: Moving Forward
Moving Forward
Slide 34: A seasoned management team
A seasoned management team GROUP DIRECTORS CEO, Cyril Zimmermann and COO Eric Giordano have more than 15 years experience in the ad tech industry Mickael Ferreira founded Quantum in Clément Boulle founded Local Media 2014 after 10 years working for AOL and in 2011 after 5 years working in the media
Slide 35: A seasoned management team
A seasoned management team COUNTRY MANAGERS Benedita Simas has managed Gonzalo Figares has managed Portuguese operations since early 2000 Spanish operations since 2011 after after running business development at founding the mobile marketing Interpublic. company Ad Triple and running sales at Yahoo!
Slide 36: Operational teams in main markets
Operational teams in main markets France, Belgium, Germany, Italy, Portugal, Spain, Sweden, United States (Miami), Mexico, Tunisia 236 PROFESSIONALS IN 10 MARKETS 36
Slide 37: Clear roadmap for growth
Clear roadmap for growth NATIVE is the new display GEOMARKETING focuses on where the majority of commerce remains SOCIAL PUBLISING leverages the scale of social network 37
Slide 38: Clear roadmap for growth
Clear roadmap for growth QUANTUM shall open 2 new markets in 2017 to be present on 6 countries ADMOOVE will start its international development in H2 2017 ADPULSE will grow international in 2018 38
Slide 39: Clear roadmap for profitability
Clear roadmap for profitability Growth will go with increased profitability in 2017 Long term EBITDA margin shall reach 10% and more 39
Slide 40: advertising & user experience
advertising & user experience quantum Efpulse @acmoove