Ad Pepper Media International N.v. · XETR:APM
Ad Pepper Media International — Investor Presentation (September 2005)
51 slides from Ad Pepper Media International's investor presentation, September 2005
Slide 1: ad pepper media company presentation
ad pepper media company presentation Company Presentation . September 2005
Slide 2: Content Index
Content Index › Online Market › ad pepper media › Services for advertisers › Services for websites › Investment overview › Our financial model › Outlook
Slide 3: Online Market
Online Market Online statistics . Market trends
Slide 4: Worldwide: Internet Growth Increasing
Worldwide: Internet Growth Increasing Source: Internet World Stats: Usage and Population statistics: http://www.internetworldstats.com/stats.htm
Slide 5: Worldwide: Internet User Breakdown 2005
Worldwide: Internet User Breakdown 2005 US 24% Europe 29% Source: Internet World Stat News: http://www.internetworldstats.com/pr/edi007.htm
Slide 6: Worldwide: 2004 Share of advertising close to 4%
Worldwide: 2004 Share of advertising close to 4% Internet 3.9% Source: PricewaterhouseCoopers / Interactive Advertising Bureau / The Advertising Association / Radio Advertising Bureau / WARC
Slide 7: Europe: Forecast European online ad spend 2002 to 2007
Europe: Forecast European online ad spend 2002 to 2007 Mobile advertising 29 60 183 403 535 633 iDTV advertising 28 52 99 191 380 767 Web advertising 787 1.160 2.096 3.224 4.347 5.023 Total (€ millions) €844 €1.272 €2.377 €3.818 €5.263 €6.424 (numbers have been rounded) Source: Forrester Research, I
Slide 8: US: Internet users & Ad spendings
US: Internet users & Ad spendings » Internet users total in America & Iberoamerica: 277,7 million » Total ad spendings: 102,47 billion US-dollar* Internet 5,5% » Online ad spending in US is higher than in Europe (%) » Online ad spending will be up 15% to 7.8 billion US-dollar in 2005 » Market is gro
Slide 9: The Company
The Company ad pepper media International N.V.
Slide 10: Presence in all important online advertising markets
Presence in all important online advertising markets Offices 16 offices 11 countries headquarters: Nuremberg Stockholm Copenhagen London Hambur Amsterdam g Utrecht Dusseldorf Nuremberg Stamford Bratislava Paris Munich Salzburg Madrid Milan Barcelona
Slide 11: ad pepper media in short
ad pepper media in short › We employ more than 130 qualified people within sales, business development and technology › Germany is our largest market followed by UK and France › Last year we had a revenue of 22.2 Mio € and a profit of 4.3 Mio € › Through investments in technology we have a state-of-
Slide 12: Company structure
ad,,, pepper Company structure Holding Marketing] Gptinization] EFC G&A | || PepperTech | apm Italy apm Austria apm UK | apm USA ) apmGermany apm Slovakia | apm BeNeLux || apm France Spots Dalal apm Denmark | | apm Sweden iG apm Spain apm Germany Gora Ree ) MediaSense ) apm Germany Web Measuremen’ —
Slide 13: What do we do?
What do we do? We provide mutual services for advertisers and websites. We help advertisers to optimize their online ad- spend We help websites to maximise their revenue stream Advertisers Online media partners ... looking for online Websites providing inventory to advertising spots generate revenue
Slide 14: We satisfy the needs of both advertisers and websites
We satisfy the needs of both advertisers and websites Advertiser’s need Website’s need » Visibilty in the on-line market » Provide user value » Broad presence » Make money » Product & Promotion branding » Grow their inventory and number of unique users » Corporate branding » Optimize ad spots » Dire
Slide 15: Our role in the Value Chain of Online Advertising
Our role in the Value Chain of Online Advertising
Slide 16: Our services for advertisers
Our services for advertisers Media . Direct Marketing
Slide 17: Services for advertisers
Services for advertisers Client needs Client needs » Branding » Collect profiles » Visibility » Response-oriented » Reach » Interaction Our services Our services » Premium Network » iClick » Reach Network » iLead » Behavioral » iBuy Targeting » iDialogue » mailpepper
Slide 18: Our network - it's all about reach
Our network - it’s all about reach Premium Network » 700 Websites, 1.4 Billion ad impressions per month » A well-known, strong brands with a position in valuable vertical market, giving the opportunity for single-site sales Reach Network » 100.000 Websites, 3 Billion ad impressions per month » Websi
Slide 19: Some of our Premium websites in the European market
... some of our Premium websites in the European market Propertyfinder.co.uk in UK › UK’s biggest consumer portal for finding new houses › 14.000.000 impressions per month Dastelefonbuch.de in Germany › The official online media for address look-up in Germany › 102.000.000 page impressions per month
Slide 20: Some of our Premium websites in the European market
... some of our Premium websites in the European market Nationalgeographic.co.uk in UK › The official website of the worldwide Magazine and TV station National Geographic › High brand awareness and targeted user groups Qoop.nl in the Netherlands › Consumer market place › 45.000.000 per month Publiwe
Slide 21: Direct Marketing
Direct Marketing » Performance based traffic generating » Pay only when users click on your ad! » We take the optimization risk! » Our lead generation product for collecting user profile data » Cost-effective and pay only for verified registrations » We collect 600.000 profiles per month from iLead
Slide 22: iLead data flow example
iLead data flow example Traffic drivers Emails, newsletters Banners & Buttons Confirmation email Thank you page Thank you Yes for your registration Error Your email Unique has profile? No already been registered Delivery of data to the client Opens a new window explaining the privacy policy includin
Slide 23: Successful iLead campaigns we are proud of
Successful iLead campaigns we are proud of » Dell » We helped Dell build up their newsletter database in more than 5 European countries » More than 1.5 million leads » Nokia game » 425,000 leads collected within 3 weeks in more than 15 countries » Master foods: Whiskas & Pedigree » Sign up to receiv
Slide 24: Services for websites
Services for websites Representation . Ad serving . E-mail marketing . Web audience measurement
Slide 25: Services for websites
Services for websites Sales representation Adserving Optin Database and e-mail Profiles Newsletter and eCRM Tools Web audience Measurement Web analytics and Performance Optimisation Profiling and Behavioural Targeting
Slide 26: Sales representation
Sales representation » Top level sales representation experienced online media sales managers » State of the art campaign management and optimization » Broad portfolio of campaign types and formats » International and professional advertiser
Slide 27: Ad Serving
Ad Serving Falk AdSolution ad serving platform - one of the most successful in Europe and US » Falk AdSolution is a partly-owned partner » We offer cheap and effective ad serving » Latest features in optimization to yield our partners maximum revenue from available ad-space » All standard banner typ
Slide 28: Opt-in Database and e-mail Profiles
Opt-in Database and e-mail Profiles Upload opt-in e-mail profiles to a “market place” where advertisers can search for targeted profile groups via our advanced Query Tool » Sell profile lists (or parts of it) very easily » List is distributed to all of ad pepper media’s advertiser network
Slide 29: Newsletter and eCRM Tools
Newsletter and eCRM Tools » Routings and long-term relationship eCRM tools » Send out newsletters for FREE via our Newsletter tool, iDialogue » In all newsletters distributed through iDialogue ad pepper retains an advertising spot » Control of design and monetisation on other advertising space in th
Slide 30: Web audience Measurement
Web audience Measurement » Audience-measurement tools to track how many visitors comes to the site, movements, hits, unique users etc. » The world’s biggest and most-used free measurement tool » User-friendly web meassurement » More than 1 million websites in Europe and US » Daily contact to over 60
Slide 31: Technology
Technology » Investments in a first class server set-up to handle enterprise-level campaign activity » Our server farm is based in Germany and right on the backbone » The main hardware equipment is IBM » Our server center is serviced 24/7 » Key technical engineers alerted by SMS in case of any irreg
Slide 32: Mergers & Acquisitions
Mergers & Acquisitions Overview
Slide 33: Overview
Overview » Pentamid A/S, 16 Nov. 2001 Technology provider of database-, product development- and creative services » Falk eSolutions AG, 01 Oct. 2002 Ad serving (AdSolution) and E-Mail services (MailSolution) » Macati S.a.r.l. , 12 Febr. 2003 Interactive solutions for response-oriented direct market
Slide 34: About Nedstat Basic / Webstats4U
About Nedstat Basic / Webstats4U
Slide 35: About Nedstat
About Nedstat › Founded in Holland in 1996 › World’s most used FREE Web Analytics solution › Worldwide network of 600K active accounts and over 1 Million websites › Annual account growth rate of 10-15% › Approx 15 Million Unique Users/Day › Approx 100 Million Page Impressions/Day › 3 Billion Page Im
Slide 36: Active Accounts and Counter History (000)
Active Accounts and Counter History (000) › Nedstat Basic has experienced sustained new account growth since inception in 1996. * These numbers do not include the circa 200K accounts that Nedstat has been deleting every year due to high traffic:
Slide 37: Geographic Distribution
Geographic Distribution › Nedstat Basic is actively used Country % in more than 100 countries The Netherlands 21,52% with the main distribution United States 10,07% being across the following Germany 8,48% countries: Spain 7,85% Belgium 4,91% France 3,78% Argentina 3,27% United Kingdom 3,00% Mexico
Slide 38: Post Acquisition Objectives
Post Acquisition Objectives › Marketing › Rebrand Nedstat Basic › Redesign statistical tool, catalogue and ranking portal interfaces › Position Nedstat as the world’s leading free webmaster tool and solutions provider › Technology › Ad Enable the Nedstat Basic Network via EXISTING installed javascri
Slide 39: Strategic Impact/Acquisition Benefits
Strategic Impact/Acquisition Benefits › ad pepper media will strongly benefit from this acquisition through: › Increased sales by having massive global proprietary reach › Increase gross margin dramatically as all deliveries will be at 100% GM › Increased cross selling opportunities to the 600K acti
Slide 40: Financials
Financials Income statements . Balance sheet . Shareholder structure
Slide 41: Consolidated Income Statement 2005 & 2004
Consolidated Income Statement 2005 & 2004
Slide 42: Consolidated Balance Sheets (IFRS)
Consolidated Balance Sheets (IFRS) in k€ June 30, 2005 December 31, 2004 Assets Noncurrent assets 12,695 10,771 Other current assets 10,836 10,430 Cash and cash equivalents* 22,098 25,197 Total assets 45,629 46,398 Liabilities and Shareholders' Equity Shareholders' equity 39,779 40,051 Minority inte
Slide 43: Industry comparables
Industry comparables in million in million in million in million
Slide 44: Earnings per share (US-GAAP)
Earnings per share (US-GAAP)
Slide 45: Benchmarks and Shareholder Structure
Benchmarks and Shareholder Structure › Total number of shares: 11,155,000 › Enterprise Value (EV): € 39.8 million › Market cap: € 63.1 million › EV/Sales: 1.6 42.5% EMA B.V. 36.7% Freefloat 4.6% U. Schmidt 5.0% Fidelity 5.0% Empire LLC 6.2% Corporate shares as of July 2005, data without engagement
Slide 46: Equity Story and Outlook
Equity Story and Outlook Where do we go from here? Unsere Marketing Lösungen
Slide 47: Share Development 2003-2005
Share Development 2003-2005 adStand: pepper media share 12.03.04, Angaben ohne Gewähr €
Slide 48: Equity Story
Equity Story › Attractive Market and sustainable Revenue Growth › The Online advertising market will grow significantly over the next years (CAGR between 10% to 15%), with mass media usage reflected in increased ad spend. ad pepper media is optimistic to outperform the market. › International Set Up
Slide 49: Good reasons for an investment in ad pepper media
Good reasons for an investment in ad pepper media › Proven business model: ad pepper media has developed a solid business model and has proven effectiveness with increasing revenue and profit › Profitability as key note: profitability represents the basis for solid growth. ad pepper media has operat
Slide 50: ad pepper media's assets
ad pepper media’s assets › Management committed on longterm contracts › Strong well-known client base: Nokia, ebay, Deutsche Telekom, Quelle, Samsung, Dell, Cofidis, P&G, Masterfoods… › Own shares: 5.79% from the total share capital, accordant to 645,690 shares, which can be used for upcoming acquis
Slide 51: Outlook
Outlook › ad pepper media expects to exceed the revenue growth of the first half year 2005 for the upcoming quarters › ad pepper media expects a significant improvement in its gross margin subject to the usage of proprietary inventory on Nedstat and mailpepper › ad pepper media will focus on product
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