Adux Sa · EURONEXT:ALDUX
Adux Sa — Shareholder Meeting (May 2017)
48 slides from Adux Sa's shareholder meeting presentation, May 4, 2017
Slide 1: Assemblée Générale 4 Mai 2017
ASSEMBLEE GENERALE 4 MAI 2017
Slide 2: Operational review, Financials, Outlook, Corporate governance
I. OPERATIONAL REVIEW II. FINANCIALS III. OUTLOOK IV. CORPORATE GOUVERNANCE
Slide 3: I. Operational Review
I. OPERATIONAL REVIEW
Slide 4: 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 4
Slide 5: 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 5
Slide 6: Our solutions to address the digital ad market's issues
Our solutions to address the digital ad market’s issues 6
Slide 7: AdUX solution #1: Native advertising
AdUX solution #1: Native advertising AdUX SOLUTION ADVERTISER USER Storytelling at scale No disruption 7
Slide 8: 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 8
Slide 9: 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 9
Slide 10: 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 11: An expertise recognized by the market
An expertise recognized by the market 11
Slide 12: AdUX solution #2: Geo marketing
AdUX solution #2 : Geo marketing AdUX SOLUTION ADVERTISER USER Location based Upside as multichannel consumer user insights 12
Slide 13: 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 13
Slide 14: Drive to store solutions for retailers
Drive to store solutions for retailers CUSTOMER LOYALTY Customers only visiting one store DUAL STORE Customers visiting one store & its competitors CONQUEST Customers catchment area and visiting the competitors 14
Slide 15: 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 15
Slide 16: Aggregated 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 16
Slide 17: 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 17
Slide 18: AdUX solution #3: Engagement
AdUX solution #3 : Engagement AdUX SOLUTION ADVERTISER USER User Social engagement Publishing 18
Slide 19: Ads involving User Engagement: Business case of social publishing
Ads involving User Engagement Business case of social publishing 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 Pétillances © Y/} | 1000 = 25M articles videos viewed on Facebook social interactions social interactions per article in average 100M cumulated contacts
Slide 23: II. Financials 2016
II. FINANCIALS 2016
Slide 24: 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 25: Growth businesses 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 26: 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 27: 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 % 47 % Growth 40 % 48
Slide 28: 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 29: 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. 250 people in 2015 • A strong reduction in the global headcount • IT and backoffice teams have been 330 organized in lower labour cost countries 251 236 2014 2015 2016 29
Slide 30: Return to profitability with positive EBITDA for 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 30
Slide 31: 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 32: Q1 2017 financial and 2017 full year perspectives
Q1 2017* financial and 2017 full year perspectives (€m) Q1 2017 Q1 2016 Var. Revenue 11,3 13,3 -15% Group Gross margin 5,4 6,4 -15% EBITDA (2) (0,3) 0,0 - Gross margin rate 48% 48% • Confirmation of expected trends in Q1 2017 : – Robust momentum in growth activities – Decline in revenue from legacy
Slide 33: III. Outlook
III. OUTLOOK
Slide 34: 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 34
Slide 35: New developments
New developments Merge of Local Media and Admoove Creation of a multidevice advertising product for desktop + mobile Commercial partnership with an outdoor advertising company Summer ‘17 : new Admoove platform ready to be deployed internationaly 35
Slide 36: New developments
New developments New Publishers on board : • Bauer Media Group, Solocal, 3Wrégie, LaPlaceMedia, Audience Square in France • Conde Nast , Sky in Italy • 2ndmain.be and MSN in Belgium Renewed main budgets : ORANGE, SAMSUNG, ClubMed Launch of Spanish activity Preparation of Launch in Germany, Brazil an
Slide 37: New developments
New developments Diversification of brands Social reach of 6M users cumulated Diversification on Instagram 37
Slide 38: Short term financial outlook
SHORT TERM FINANCIAL OUTLOOK Revenues shall start growing again in Q2 2017 Revenues shall grow over Full Year 2017 EBITDA shall grow in 2017 38
Slide 39: Mid-long term financial perspective
MID-LONG TERM FINANCIAL PERSPECTIVE Growth shall accelerate in the coming years Long term EBITDA margin shall reach 10% and more 39
Slide 40: IV. Corporate Governance
IV. CORPORATE GOVERNANCE
Slide 41: Board has been renewed
BOARD HAS BEEN RENEWED Majority of independant board members 40% of women Odile Roujol (ex Orange CDO) : marketing and strategy, working for VC and start ups in the Silicon Valley Sandra Legrand (ex Kalidea CEO) : entrepreneurship, involved in professional organization like Croissance Plus Benjamin
Slide 42: Management's package audit
MANAGEMENT’S PACKAGE AUDIT Management’s top packages have been benchmarked by Mercer Consulting and reviewed by the board’s comitee CEO’s package in 2016 and 2017 2016 : 195K€ fixed +30K€ bonus (out of 60K€ potential) 88 K€ of other benefits (job loss, retirement, car, expatriation) 2017 : 200K€ fix
Slide 43: General Meeting Agenda
GENERAL MEETING AGENDA ASSEMBLÉE GÉNÉRALE ORDINAIRE • Première résolution Approbation des comptes sociaux de l’exercice clos le 31 décembre 2016 • Deuxième résolution Approbation des comptes consolidés de l'exercice clos le 31 décembre 2016 • Troisième résolution Quitus aux administrateurs • Quatriè
Slide 44: General Meeting Agenda
GENERAL MEETING AGENDA • Huitième résolution Approbation des principes et critères de détermination, de répartition et d'attribution des éléments fixes, variables et exceptionnels composant la rémunération totale et les avantages de toute nature attribuables à Monsieur Cyril Zimmermann, Président Di
Slide 45: General Meeting Agenda
GENERAL MEETING AGENDA ASSEMBLÉE GÉNÉRALE EXTRAORDINAIRE • Treizième résolution Changement de dénomination sociale et modification corrélative de l'article 2 des statuts de la Société • Quatorzième résolution Délégation de compétence consentie au Conseil d’administration en vue (i) d’augmenter le ca
Slide 46: General Meeting Agenda
GENERAL MEETING AGENDA • Seizième résolution Délégation de compétence consentie au Conseil d’administration en vue d’augmenter le capital immédiatement ou à terme par émission d’actions ordinaires ou de toutes valeurs mobilières donnant accès au capital, avec suppression du droit préférentiel de sou
Slide 47: General Meeting Agenda
GENERAL MEETING AGENDA • Vingtième résolution Autorisation à donner au Conseil d’administration de consentir des options de souscription ou d'achat d'actions de la Société au profit des salariés du groupe • Vingt-et-unième résolution Autorisation à donner au Conseil d’administration de procéder à de
Slide 48: quantum
quantum E& pulse advertising & user experience @ acmoove