System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — H1 2009 Earnings Presentation
23 slides from System1's earnings presentation, September 2009
Slide 1: 2009 Interim Results
2009 Interim Results September 2009 1 London S Brighton S Rotterdam S Lausanne S Hamburg S New York S Chicago S Los Angeles S Toronto S Melbourne A Leading International Online research agency
Slide 2: BrainJuicer
BrainJuicer® BrainJuicer® seeks to generate profitable growth and attractive returns on investment by improving the ways in which our clients undertake Market Research. We aim to design Market Research tools and techniques which provide better ways to understand and predict consumer behaviour, and w
Slide 3: Market Research
Market Research S A global market worth $32bn* S 9% pa growth 2000 – 2008 S Small decline expected over 2009, although online still growing S Major shift from offline to online spending S Online research Process Output Faster More value add Cheaper More insightful More honest More creative * 2008 da
Slide 4: Online Market Research
Online Market Research Top 10 countries with highest online research %* Canada 35% S 45% pa growth in online market Japan 33% research 2000-2008* Australia 32% Germany 29% S BrainJuicer currently operating in 6 Netherlands 28% of the largest 10 online markets New Zealand 27% S 40% online share in al
Slide 5: BrainJuicer: A fast growing, ambitious market research agency
BrainJuicer® S A fast growing, ambitious market research agency S Punches above its weight in terms of blue chip clients S Operates solely in online sector S Acknowledged as innovative, leading edge player S Attracts talented market research professionals S Profitable, scalable, cash generative busi
Slide 6: BrainJuicer Focus
BrainJuicer® Focus Total MR Market % by Type % by Spend Strategic research Omnibus Continuous Ad hoc Consumer B2B Other Public Sector S BrainJuicer® operates in the strategic research segment, and overwhelmingly for consumer goods companies S Near global research capability S Clients include 10 of t
Slide 7: Consistent Strong Growth
Consistent Strong Growth 10500 2004 – 2008: 9,322 13 9000 S Revenue growth 37%* pa S Operating margin up from 7% to 14% 11 7500 S Operating profit growth 62%* pa Fully diluted earnings per share p S Diluted EPS growth 46%* pa to 7.4p 6,566 9 Revenue £000's 7.4 6000 7 4,608 4500 5.0 5 2,936 3000 2,61
Slide 8: 2009 First Half Key Financials
2009 First Half Key Financials S 22% revenue growth to £4.9m (H1 2008: £4.0m) S 18% operating profit growth to £231,000 (H1 2008: £196,000) S 6% pre-tax profit growth to £243,000 (H1 2008: £229,000) S 8% fully diluted eps growth to 1.3p (H1 2008: 1.2p) S 20% increase in interim dividend to 0.6p (200
Slide 9: 2009 First Half
2009 First Half Revenue Operating Profit £'000 Change % v 2008 £'000 Change % v 2008 UK 2,422 -5% 1,031 -10% Netherlands 1,078 +12% 442 +25% US 837 +85% 85 Loss in H1 08 Switzerland 313 NA 151 NA Germany 199 NA 56 NA S UK shortfall more than offset by growth elsewhere S US market position continues
Slide 10: 2009 First Half Key Operating Features
2009 First Half Key Operating Features S Revenue growth picked up after slow start S Slight decline in operating margin S Substantial investment in people and systems to support future growth S H1 2009 FTE average headcount 63 (H1 2008: 51) S Higher margin, more differentiated 'Juicy' products gener
Slide 11: Projects and Revenue per Project
Projects 600 Jul - Dec 20 19 Jan - Jun Revenue per project £000 17 500 15 15 400 Revenue per project £000 248 # of projects 247 300 10 200 293 5 252 100 196 0 0 2007 2008 H1 2009 12
Slide 12: Outlook
Outlook H1 H2 10,500 S Economic backdrop remains unhelpful S Commentators expect market decline in 2009 9,000 - but client spend opening up S BrainJuicer® profits normally H2 weighted 7,500 5,352 Revenue £000's 6,000 3,665 4,500 2,759 3,000 4,849 1,568 1,548 3,970 1,500 2,901 1,849 1,066 1,368 0 200
Slide 13: Gaining Share in Online MR
Gaining Share in Online MR Communispace & MillwardBrown Ipsos.com MESH OD. YouGov Marketlools.
Slide 14: Juicy Products and Plenty of Twist
Juicy Products and Plenty of Twist S Juicy: unique, challenging traditional approaches S Twist: standard approach + unique diagnostics Innovative Final Mix Launch Track Methods BrainJuicer® focus Front-End Innovation 15
Slide 15: Six Juicy Products
Six Juicy Products JuicyBrains Community® Insight Validator® A unique, online community Brand leading method to attracting creative consumers assess the commercial to work on innovation briefs potential of a company’s for multinational companies consumer insights used to e.g. Kraft, Nestle, Sainsbur
Slide 16: BrainJuicer Labs Commitment to Innovation
BrainJuicer Labs Commitment to Innovation FamilyCam® Mobile Moments of Truth™ Wires up homes for long-term Real-time research, capturing online ethnography & product in the moment feedback and testing, as an inspirational & feelings, using mobile insightful research resource telephones S Dedicated t
Slide 17: Geographic Coverage
Geographic Coverage █ Offices in 5 countries 57% global research market █ Licence partners in Canada, Australia █ Research conducted in 54 countries 90% global research market 18 █ Priority target markets
Slide 18: Outstanding Client Service
Outstanding Client Service “Not only did BrainJuicer deliver top quality analysis and consulting (using your Predictive Markets) – your professionalism and proactive customer orientation were outstanding.” Uta Formeseyn – Senior Manager, Business Insights – Coca-Cola "I was really impressed with the
Slide 19: Key Drivers of Sustained Growth
Key Drivers of Sustained Growth S Focus on 'fragile front end' of innovation process S Invest in developing and validating 'Juicy' products S Extend geographic footprint S Maintain reputation for outstanding client service S Strengthen the team – attract creative market research talent Move to prefe
Slide 20: London S Brighton S Rotterdam S Lausanne S Hamburg S New York S Chicago
21 London S Brighton S Rotterdam S Lausanne S Hamburg S New York S Chicago S Los Angeles S Toronto S Melbourne A Leading International Online research agency
Slide 21: Appendix
Appendix 22
Slide 22: BrainJuicer Board
BrainJuicer® Board CEO CFO John Kearon James Geddes S 22 years experience S 22 years financial S Unilever Research/Mktg management experience S Publicis Planning Director S CFO of IOBox - sold to S Founder Brand Genetics Telefonica S E&Y Emerging S Assistant Treasurer of Entrepreneur of Year Ken For
Slide 23: Country Managing Directors
Country Managing Directors NL MD CH MD Evert Bos Mark Johnson S 14 years’ marketing S 10 years’ experience in & research experience consumer insight and market S Head of Market Research research at Bestfood S Strong track record of S Unilever Marketing innovation UK MD US MD DE MD Jim Rimmer Ari Pop