Future Plc · LSE:FUTR
Future — Investor Day (February 2019)
109 slides from Future's investor day presentation, Feb 14, 2019
Slide 1: Future plc Capital Markets Day
Future plc Capital Markets Day 14th February 2019
Slide 2: Agenda
Agenda 3pm Business overview & growth strategy | Zillah Byng-Thorne 3.10pm Owning a vertical - the value of leadership Vertical strategy | Aaron Asadi Audience & SEO | Sam Robson Tom’s Guide | Mark Spoonauer 3.40pm Coffee break 3.55pm The US media market & eCommerce | Michael Kisseberth Peak trading
Slide 3: Today's speakers
Today’s speakers Vertical US Market & eCommerce Technology & Ads Zillah Byng- Aaron Asadi Michael Kisseberth Zack Sullivan Thorne Chief Content Chief Revenue SVP Sales & Chief Executive Officer Officer Operations, UK Zillah will be talking Aaron will be talking Mike will be talking Zack will be talk
Slide 4: Business overview & growth strategy
Business overview & growth strategy Zillah Byng-Thorne Chief Executive Officer
Slide 5: Our strategy
Our strategy Future is a technology-enabled global platform for specialist media with scalable, diversified brands. We create fans of our brands by giving them a place they want to spend their time and where they go to meet their needs. We continue to create loyal communities. We are expanding our g
Slide 6: How we execute our strategy
How we execute our strategy 4 underlying pillars facilitate operating at pace Continued diversification 1 Diversifying our audience 2 Scalable business 3 4 Ongoing investment of content monetisation New verticals ● Scalable, lean and robust ● Growth in events ● Buy and build where we ● Cycling busin
Slide 7: Our world
Our world We go where our audiences are As a result of our global audiences we operate across three continents: Europe, with offices in the UK and France; the US; and Asia Pacific with an office in Australia. Below is a summary of our locations and audience. Online Users: 13.2m (APAC) United Kingdom
Slide 8: Diversifying our monetisation
Diversifying our monetisation We have created 6 meaningful revenue streams Membership & Subs Services & Other 6.4% FY18 Proforma Revenue* Print 9.1% Advertising 8.4% eCommerce 16.3% 1st Party Display Newstrade 15.5% 14.3% Events 4.7% Creative 7.6% Solutions 17.8% Programmatic *Proforma includes full
Slide 9: Diversifying our monetisation
Diversifying our monetisation Our model is applied consistently across our verticals, with all having a mix of revenues 9
Slide 10: Where we operate
Where we operate Audience diversification through scalable sectors delivering diversified revenues Gaming & Media Audio Video Technology Music Entertainment & Technology Education Entertainment Media Technology CONSUMER B2B Creative & Consumer Music & Pro 1 B2B Pro Photography Hobbies Home interest
Slide 11: Slide comment thread
Slide 10 1 +laura.elliott@futurenet.com I thought we were calling this Pro B2B? _Reassigned to you_ Penny Ladkin-brand, 13/02/2019 1 I thought that was just internally...like calling the rest of the B2B sub-verticals "B2B". I'm happy to change it to B2B Pro, I don't think it matters too much. Laura
Slide 12: Vertical leadership
Vertical leadership Technology Games & Ent Music Creative & Photo Hobbies Home Interest Audience 90m consumer 37.9m consumer 16.6m consumer 3.8m consumer 36.0m consumer 1.3m consumer reach 5.3m B2B 0.7m B2B 5.3m B2B Market #1 online in UK #1 online in PC #1 UK & US music #1 online in UK #1 online in
Slide 13: Expanding our reach through acquisitions
Expanding our reach through acquisitions A proven model to add value ● It is a core part of our strategy to buy and build where we identify assets where we can add value ● We take a systematic approach to all acquisitions, resulting in all transactions to date being originated in-house Phase 0 Phase
Slide 14: Vertical Extension - Cycling
Vertical Extension - Cycling Our proven model allows to acquire at pace and add value 1 Diversifying our audience 2 Business overview 3 Investment case 4 Ongoing investment ● Cyclingnews - market ● Two leading brands focused ● Growth in eCommerce leader online for on pro-cycling market ● Buy and bui
Slide 15: Owning a vertical
Owning a vertical The value of leadership
Slide 16: Vertical strategy
15 Vertical strategy Aaron Asadi Chief Content Officer
Slide 17: What is vertical leadership?
What is vertical leadership? ● Diversified, high-growth business in specialist markets ● New way to develop and manage strategy ● Vertical not channel-specific ● Vertical contains entire market product set ● Customer-first not product-first 16
Slide 18: GamesRadar+ website
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Slide 19: Product-first model
Product-first model Product Channel Shops Subs Apps Web License Customers (From Salesforce founder, Tien Tzuo) 18
Slide 20: Customer-first model
Customer-first model Events Mobile Laptop ? Shops Experiences Services Apps Subs (From Salesforce founder, Tien Tzuo) 19
Slide 21: Know the customer
Know the customer We have to know what they want in order to deliver it. At Future we rely on interaction and feedback loops to win that valuable insight. These include: ● Cross-platform reader surveys ● Online analytics ● eCommerce analytics ● Retail customer data ● Social media ● Forums ● One-to-o
Slide 22: Why vertical leadership?
Why vertical leadership? ● Customer-focused strategy ● Easier to adapt ● Opportunities easier to identify ● Better channel collaboration ● Smarter working ● Consistent standards ● Cross promotion ● Speaks to values ● Better cross-pollination 21
Slide 23: Our brands
Our brands Gaming & Creative & Home Technology Entertainment Music Photography Field Sports Knowledge Interest 22
Slide 24: The content workflow
The content workflow A single Future how-to guide can be published in a print edition, a LICENSED licensed edition, an app, an online EDITION article and a bookazine ANNUAL APP INVESTMEN MAGAZINE BOOKAZINE T RETURN LICENSED EDITION ONLINE APP ARTICLE 23
Slide 25: Vertical leadership in consumer tech
Vertical leadership in consumer tech ● Acquired new brands, increasing vertical scale ● Brand collaboration key to realising potential ● Approach providing: ○ Key terms strategy eg No 1 and 2 rankings ○ Intelligence sharing ○ More co-ordinated campaigns eg Honor ○ Efficiencies on testing / content s
Slide 26: Advertising in the consumer tech vertical
Advertising in the consumer tech vertical ● Large range of clients with large range of needs ● Niche brands offer access to hyper specialist audience Specialist client wants access to ● Consumer tech portfolio serves niche enthusiasts mainstream ads What Hi-Fi? charges premium prices ● Vertical lead
Slide 27: Results
Results Audience Revenue Rankings Categories US 26
Slide 28: Audience & SEO
Audience & SEO Sam Robson Director of Audience
Slide 29: Future's online users by country
Future’s online users by country USA Other 29.7% Australia 44.6% 3.3% 4.6% 5.3% 12.5% India Canada UK Data: Monthly Online Users to Future Websites, Dec 2018. Source: Google Analytics 28
Slide 30: Online Users
● Underlying YoY organic Future’s audience growth growth (Dec 2017 to Dec 2018) of Legacy Future brands was 24% Future without Purch ● SEO is main driver of audience growth 80m Online Users 40m 0 2016 2017 2018 Data: Monthly Online Users to Future Websites. Source: Google Analytics 29
Slide 31: Online Users
● Haymarket & NewBay drove a 18% increase Future’s audience growth ● from March to May Purch acquisition was transformative to Future with acquisitions audience size, driving 112% growth from August to September NewBay ● In November, combined online users were Legacy Future FY17 acquisitions more th
Slide 32: Why do we focus on search?
Why do we focus on search? ● SEARCH USED DAILY BY MOST PEOPLE CONSISTENCY ● CONSISTENT SEO REFERRAL GROWTH & SCALE ● FUTURE-PROOF ● EVERGREEN CONTENT HAS LONG LIFESPAN EFFICIENCY ● MAINTENANCE LESS RESOURCE INTENSIVE ● COST-EFFECTIVE ● READER IS READY TO BE INFLUENCED QUALIFIED ● INTENT CLEAR FROM S
Slide 33: How a leadership position benefits content strategy
How a leadership position benefits content strategy ● In tech, we have the freedom to have different strategies for each brand ● TechRadar, as our largest brand, adopts a more conservative and defensive strategy ● T3 adopted a more aggressive news-focused strategy ● T3 has grown search traffic 247%
Slide 34: The SEO benefit of owning multiple brands
The SEO benefit of owning multiple brands The old way ● Own one brand ● Aim to rank first ● Increase traffic by broadening search terms The new way ● Own many brands ● Aim to rank first ● Increase traffic by broadening search terms + Increase traffic by ranking 2nd & 3rd 33
Slide 35: The ability to be both generalist and specialist
The ability to be both generalist and specialist ● Our position allows us to have more defined brands. Whether specialist or generalist, we have you covered ● No need for every brand to chase scale, can focus hard on own niche ○ TechRadar and Tom’s Guide cover scale & breadth ○ What Hi-Fi?, Laptop e
Slide 36: The benefits of leadership & diversification
The benefits of leadership & diversification Audience split by tech Audience split by tech website - Dec 2017 website - Dec 2018 Gizmodo UK Anandtech Techradar T3 ● In December 2017, 92% of Future’s tech 3.3% What Hi-Fi? audience came via 4.5% TechRadar 4.5% Tom’s Hardware ● In December 2018, we’ve
Slide 37: Future's audience advantage
Future’s audience advantage Key takeaways OUR AUDIENCE THE VALUE OF A SCALABLE & IS GLOBAL, SEARCH-DRIVEN REPEATABLE & GROWING AUDIENCE SEO PROCESSES 24% YoY ORGANIC GROWTH PREDICTABLE VANILLA PLATFORM 24% YOY SEO GROWTH HIGH VOLUME DATA ANALYSIS 45% OF AUDIENCE IN US HIGH INTENT SEO PLAYBOOK 36
Slide 38: Tom's Guide
Tom’s Guide Mark Spoonauer Editor-in-Chief, Tom’s Guide
Slide 39: Tom's Guide: acceleration as part of Future
Tom’s Guide: acceleration as part of Future 1. Tom’s Guide is a leading tech vertical site in US 2. Growing fast and now even faster now that we have integrated Future’s best practices 3. Future’s SEO Playbook and eCommerce strategy leading to great results 38
Slide 40: Tom's Guide online users
One of top sites in tech vertical Mission: Be helpful What is Tom’s Guide? Biggest year ever: 2018 biggest year ever - up 26% YoY Impressive growth: Number of users went from 8.3 million in 2016 to 17.7 million in 2018 Authoritative: Expertise sought for TV and radio 20.0m Online Users Integrated 10
Slide 41: What makes Tom's Guide stand out?
What makes Tom’s Guide stand out? 1 2 3 40
Slide 42: Leveraging SEO Playbook
Leveraging SEO Playbook ● Integration of Future SEO Playbook producing positive results ● Editors and writers empowered with new tools ● Organic search users up 23% since Sept ● Breaking news treated as opportunity to refresh content 41
Slide 43: eCommerce Growth
eCommerce Growth Close collaboration A focus on deal Results with eComm team hubs and spotlights Weekly strategy meetings. More than 80 hubs Generated more revenue in 4 24/7 war room effort peak created on TG. Product- days over Cyber Weekend than trading and Prime Day. focused deals increasing prev
Slide 44: Our guides: the best experts
Our guides: the best experts ● Team of 19 editors, writers, testers and producers ● We recruit, train and retain top talent, including from other leading sites ● We’ve rolled out SEO Playbook to all staffers ● TV, radio and other outlets seek us out (NBC, Fox Business, Cheddar, CBS Radio) Mark Spoon
Slide 45: Tom's Guide: acceleration as part of Future
Tom’s Guide: acceleration as part of Future ● We are reaping rewards of Future integration ● Our original testing, team of experts and strong vendor relationships make Tom’s Guide stand out ● Tom’s Guide is driving growth in the highly competitive tech vertical in US and UK 44
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Slide 47: Coffee break
Coffee break
Slide 48: The US media market & eCommerce
47 The US media market & eCommerce Michael Kisseberth Chief Revenue Officer
Slide 49: US adults spend most time with digital media
US adults spend most time with digital media Average time spent per day with major media by US adults, 2017 Total per day = Other* 12 hours 1 minute 0:21 Print* 0:24 Radio* 1:26 Digital 5:53 TV* 3:58 Note: ages 18+, time spent with each medium includes all time spent with that medium, regardless of
Slide 50: Ad spending follows the users
Ad spending follows the users Distribution of advertising spending in the US from 2010 to 2020, by media Digital 120 TV 100 Radio Audience (M) 80 Magazines Newspapers 60 Out-of-home 40 Directories Note: United States; 2010 to 20 2015; for newspapers, magazines and directories print ads only; for rad
Slide 51: Programmatic - #1 channel for digital display media
Programmatic - #1 channel for digital display media Programmatic digital display ad spending in the United States from 2016 to 2020, by transaction method (in billion US dollars) 70 Real-time bidding 40.03 Spending in billion US dollars 60 Programmatic direct 34.09 50 27.00 40 20.64 30 13.62 25.59 2
Slide 52: Delivering what marketers value fuels success
Delivering what marketers value fuels success ● ROI on their promotional spending ● Enough scale to have a material impact on their business ● The ability to reach their target audience ● Bringing simplicity to all of the above 51
Slide 53: Future delivers what marketers value
Future delivers what marketers value ● ROI on their promotional spending ● Delivers messaging ● Enough scale to in brand safe have a material environments impact on their business ● Hits viewability targets ● The ability to reach their target ● Is seen by humans audience (Bot free) ● Bringing simpli
Slide 54: Our promotional products drive ROI
Our promotional products drive ROI High impact advertising Awareness Conquesting Affinity Video | Social | Live events 1st party targeting Interest Sequential targeting Decision 2nd party targeting Optimized pages, buy buttons Action Deals emails 53
Slide 55: eCommerce growth fuels affiliate opportunity
eCommerce growth fuels affiliate opportunity Retail eCommerce sales in the United States from 2017 to 2023 (in million US dollars) 800,000 735,358 700,578 659,779 Revenue in million US dollars 700,000 612,959 560,747 600,000 504,582 500,000 446,811 400,000 300,000 200,000 100,000 0 2017 2018 2019* 2
Slide 56: Affiliate marketing - $6.4B in 2019
Affiliate marketing - $6.4B in 2019 Affiliate market spending in the US from 2015-2020 (in billion US dollars) 8 6.82 Sales in billion US dollars 7 6.40 5.94 6 5.37 4.78 5 4.21 4 3 2 1 0 2015 2016 2017 2018 2019 2020 Notes: United States; 2015 Source(s): Forrester Research, Rakuten, eMarketer 55
Slide 57: Future's intent content drives recurring revenue
Future’s intent content drives recurring revenue ● Delivers value to users which grows audience ● Drives affiliate link performance ● Scale + performance = negotiating leverage for higher affiliate revenue shares ● Affiliate links at scale = recession proof revenue 56
Slide 58: Why Future is well positioned for the US market
Why Future is well positioned for the US market We deliver what marketers there value! ● ROI - our campaigns and proposals deliver ● Scale - our reach is large enough to get our customers’ attention ● The right audiences - we deliver them in high context special interest environments that are brand
Slide 59: Peak trading
Peak trading Jason Kemp Managing Director eCommerce
Slide 60: What is peak trading?
What is peak trading? ● Peak trading runs from November to mid- January ● Includes a number of different trading events: ○ Black Friday ○ Cyber Monday ○ Holiday and Christmas gift buying ○ Sale 59
Slide 61: Why it is important to Future
Why it is important to Future AUDIENCE ● A crucial time to connect with 143M members of our audience visiting us for buying advice ● A time to connect with our retail and service partners a part of which is sending them 17.75M highly qualified clicks BUYING ● Our scalable tech platform enables this
Slide 62: Why it is important to Future
Why it is important to Future 61
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Slide 64: Prior planning & preparation
Prior planning & preparation ● We plan peak trading like a retailer ○ Get all preparation done in the months leading up to peak ○ Focus solely on trading during the time itself ● Our ability to be highly responsive is due to a blend of our formula and our scalable tech platform 63
Slide 65: A formula that works
A formula that works ● Future’s peak trading formula is so effective that we managed to have our content for Walmart deals on Cyber weekend be viewed by Google as being more relevant than Walmart’s own ● It is a formula that we can apply quickly to acquired brands also: ○ As a result Tom’s Guide gen
Slide 66: A formula that works
A formula that works Future’s peak trading formula is one that is both driven and enabled by our tech Vanilla CMS platform: ○ Hawk ingests retailer data and tells us of the price movements of Editorial skills key products ○ This informs our editors who use it to decide which deals to feature ○ The e
Slide 67: Peak trading roundup
Peak trading roundup 143M users visited Our content helped Significant trading our buying advice inform over 1M outside of tech content over peak transactions for our trading audience across 12k different products 66
Slide 68: Evolution of our tech stack
Evolution of our tech stack Kevin Li Ying Chief Technology Officer
Slide 69: Why is the tech stack important?
Why is the tech stack important? Our tech stack allows: ● Our websites to exist and grow ● Our magazines to be published on time every time ● Our business to further diversify its revenue streams ● Our organisation to operate efficiently 68
Slide 70: Our tech stack
Our tech stack One agile, flexible, lean, robust and scalable homogeneous ecosystem STAFF FREELANCE STAFF MAGAZINE CONTENT WEB PLATFORM: TECH SERVICES PLATFORM: COMMISSIONING VANILLA New STUDIO PORTAL: SOURCE CMS AD TECH: MAGAZINE FLAT ECOM TECH: BORDEAUX PLANNING CONTENT RE-USE CONTENT HAWK + New L
Slide 71: Vanilla platform: enabling new & growing existing brands
Vanilla platform: enabling new & growing existing brands WEB PLATFORM: VANILLA CMS Vanilla’s global content management system delivers: CONTENT LOCALISATION Great economies of scale AUTOMATED CONTENT TAGGING ● Standardised approach to online content creation ● Enables online + print content reuse an
Slide 72: Vanilla platform: content localisation
Vanilla platform: enabling new & growing existing brands WEB PLATFORM: VANILLA CMS Vanilla’s content localisation features: CONTENT LOCALISATION Offers the ability for content to be targeted for specific territories like TechRadar US, UK, Australia, Singapore, India, Middle East AUTOMATED CONTENT TA
Slide 73: Vanilla platform: localised TechRadar sites
Vanilla platform: enabling new & growing existing brands TechRadar Finland TechRadar Denmark Fully localised in Fully localised in Finnish language Danish language TechRadar Norway TechRadar Sweden Fully localised in Fully localised in Norwegian language Swedish language 72
Slide 74: Vanilla platform: automated content tagging
Vanilla platform: enabling new & growing existing brands WEB PLATFORM: VANILLA CMS Vanilla’s automated content tagging technology: CONTENT LOCALISATION Exploiting semantic analysis to interpret and tag content in a consistent way AUTOMATED CONTENT TAGGING ● Drives more monetisable audience traffic t
Slide 75: Vanilla platform: website builder
Vanilla platform: enabling new & growing existing brands WEB PLATFORM: VANILLA CMS Vanilla’s website builder: CONTENT LOCALISATION Scalable and robust AUTOMATED CONTENT TAGGING ● Supports delivery of 175m web page views and 860m advertising impressions (Dec 18) WEBSITE BUILDER ● Cost effective and f
Slide 76: Vanilla platform: plug and play solution
Vanilla platform: enabling new & growing existing brands Vanilla is a plug and play solution and it gives us ● Speed to market; Space.com within 12 weeks ● Optimise for SEO ● Maximise revenue per user ● Delivers web page fast ● Fast web page delivery 75
Slide 77: Vanilla platform delivering a scalable business model
Vanilla platform delivering a scalable business model Overall an agile, lean, robust and scalable tech stack We now have 16 sites in total on our proprietary platform Vanilla having migrated four in 2018 and a further two in the start of current year already ● Two new launches in 2018: Realhomes.com
Slide 78: Innovation: enabling business growth
Innovation: enabling business growth Vanilla platform with Flexi - cutting-edge technology STAFF Proprietary system design Designed to be robust and resilient WEB PLATFORM: VANILLA New ● Accelerate website migration -> auto migration in the future CMS for Future ● Allow re-purposing our tech talent
Slide 79: Vanilla platform with Flexi: enabling business growth
Vanilla platform with Flexi: enabling business growth 78
Slide 80: Flexi site builder screenshot
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Slide 81: Summary: technology operating model enabling business growth
Summary: technology operating model enabling business growth Efficiency Scalability Innovation Go to market fast Blend of people Foundation enabling + technology + processes innovation Ability and agility to pivot Delivering operating Turbo charging our Vanilla Counter effect of margin/efficiency pl
Slide 82: Ad tech
Ad tech Zack Sullivan SVP Sales & Operations, UK Reda Guermas VP Software Engineering Ad Tech
Slide 83: This section
This section ● What is programmatic ● The benefits ● Our trends ● How we deliver this
Slide 84: What is programmatic?
What is programmatic? Platform enabled automation of the buying, selling and delivery of advertising Using an auction mechanic Premium & RTB RAMP is Future’s proprietary programmatic platform 83
Slide 85: The difference?
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Slide 86: The benefits
The benefits Optimises Yield Direct selling Programmatic Selling Buyers Predictable Sales teams Scalable Delivery teams Automated 85
Slide 87: Industry trends
Industry trends US Programmatic Digital Display Ad Spending, 2016-2020 billions, % change and % of total digital display ad spending* Real-time bidding $68.87 Programmatic direct 86.3 $57.35 $47.37 48.1% $36.31 $25.91 Note: digital display ads transacted via an 40.2% API, including everything from p
Slide 88: Programmatic US growth at Future
Programmatic US growth at Future Programmatic - Future US Revenue* CAGR: +65% *Excludes Purch 87
Slide 89: Programmatic as a percentage of total display revenue
Programmatic as a percentage of total display revenue FY16 Group Digital Display Revenue* FY18 Group Digital Display Revenue* (Proforma for Purch) Change in % split Programmatic Programmatic advertising advertising 1st party 37% 1st party 53% advertising advertising 63% 47% *Digital display revenue
Slide 90: How we drive programmatic revenue
How we drive programmatic revenue We start with the basics ● The right audience ● Reach ● Engagement The value Future adds ● Viewability ● Brand safety Brand ● Refresh & incremental Safety ● GDPR data consent Viewability And with RAMP we are taking it further ● Speed Engagement ● Data management R/F
Slide 91: Summary: Programmatic delivers multiple benefits
Summary: Programmatic delivers multiple benefits Efficiency Growth Innovation Growing area of Automated advertising RAMP is turbo charging growth Predictable revenue Better than market growth Optimized to Vanilla & Scalable Delivers marketers needs Bordeaux 90
Slide 92: RAMP & Bordeaux
RAMP & Bordeaux Reda Guermas VP Software Engineering Ad Tech
Slide 93: RAMP
RAMP Revenue and Advertising Management Platform 2018 DIGIDAY Best Use of Technology Award Winner 92
Slide 94: Traditional ad tech
Traditional ad tech Sellers Buyers Publishers Advertisers FUTURE DIRECT Advertising Advertising Placement Trading Technology Marketplace Advertising Operations $ PROGRAMMATIC 93
Slide 95: Ad Tech with RAMP
Ad Tech with RAMP Sellers Buyers Publishers Advertisers RAMP FUTURE DIRECT Advertising Advertising Placement Scale Trading Technology Marketplace Advertising Market Place $ PROGRAMMATIC $ 94
Slide 96: Ad Tech with Bordeaux
Ad Tech with Bordeaux Sellers Buyers Publishers Advertisers Bordeaux RAMP FUTURE Advertising DIRECT Viewability Advertising Scale Trading Marketplace Advertising Advertising Market Volume Place $ $ PROGRAMMATIC $ $ 95
Slide 97: Ad Tech with RAMP + Bordeaux
Ad Tech with RAMP + Bordeaux RAMP Bordeaux ● Scale ● Viewability ● Competition ● Volume 1 1 4 96
Slide 98: Summary: Power of RAMP + Bordeaux
Summary: Power of RAMP + Bordeaux AD TECH RAMP + Bordeaux together give us RAMP ● Scale ● Diversity ● Market depth ● Insight ● Optimal viewability BORDEAUX ● Increased volume TECHNOLOGY TEAM 97
Slide 99: Investment thesis
Investment thesis Penny Ladkin-Brand Chief Financial Officer
Slide 100: Our strategy
Our strategy Future is a global platform for specialist media with scalable, diversified brands. Creating fans of our brands by giving them a place they want to spend their time, where they go to meet Compelling their needs. Continuing to create loyal communities. investment case Expanding our globa
Slide 101: Diversified revenue streams
Membership & Subs Diversified revenue streams Services & Other FY18 Revenue (Proforma for Purch) 6.4% Print Advertising eCommerce 9.1% 8.4% 16.3% 15.5% 14.3% US UK 49.6% 48.8% 50.4% 51.2% 4.7% 7.6% 17.8% Newstrade 1st Party Display Programmatic Creative Events Solutions *Proforma includes full year
Slide 102: Focus on the basics
Focus on the basics: Organic revenue growth from volume (users) & yield (RPU) Contain costs as we scale Convert to cash to reinvest 101
Slide 103: Growing volume and yield
Growing volume and yield Global Online Users Revenue Per Online User 200.0 2.00 Purch Future UK* US 1.78 150.0 1.50 80.8 1.39 1.16 MM £ 100.0 1.00 1.01 0.98 0.75 69.5 50.0 0.50 0.60 52.2 47.9 43.7 0.4 6 0.0 0.00 2015 2016 2017 2018 2015 2016 2017 2018 Organic: +13% CAGR Total: +26% CAGR UK: +22% CAG
Slide 104: High cash conversion
High cash conversion Group EBITDA and Free Cash Flows Group Overheads as % of Revenue & EBITDA Margin £25.0 70% 20% EBITDA Free cash flows EBITDA and Adjusted Free Cash Flow Overheads as % of Revenue £20.0 £20.7 65% 15% EBITDA Margin £15.0 £17.4 60% 10% £15.3 £’M £10.0 £11.0 55% 5% £5.0 £5.2 £4.6 £3
Slide 105: Scaling up through acquisitions
1 Scaling up through acquisitions ● Accelerate growth through sensible acquisitions Revenue & EPS Growth Group organic revenue YoY growth 50% 25 Group total revenue YoY growth 40% 20 EPS(p)* Revenue % YoY Growth 30% ● Organic revenue YoY Growth rate excludes all 15 acquisitions until owned for a ful
Slide 106: Slide comment thread
Slide 104 1 +penny.ladkinbrand@futurenet.com Do you want to add a comment that the organic is total company and therefore that MEdia is far greater? Otherwise I am worried could be perceived as a little slow Also I was asked aboutour EPS CAGR - do you think someone could calculate that and we could
Slide 107: Investment case
Investment case ● Our strategy is aimed to be both defensive and growth oriented ● Margin increases as we gain scale and the revenue mix changes towards Media revenues ● Strong cash conversion delivers increasing free cash flows ● Focus on delivering organic growth and building platform to accelerat
Slide 108: Conclusion & questions
Conclusion & questions
Slide 109: Executive summary
Executive summary Strategy delivering sustainable growth Specialist verticals create value ● Diversifying our monetisation - creation of six meaningful ● A customer-first model to develop and manage revenue streams vertical strategy ● Expanding our reach through acquisitions - vertical ● SEO-focused