System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — FY2008 Earnings Presentation
24 slides from System1's earnings presentation, March 2009
Slide 1: 2008 Results
Fresher Insights Better Marketing 2008 Results March 2009 London S Brighton S Rotterdam S Lausanne S Hamburg S New York S Los Angeles S Toronto S Melbourne A Leading International Online research agency
Slide 2: About BrainJuicer
About BrainJuicer® S International, full service online market research agency S Innovative 2-in-1 research approach delivering greater diagnostic insights S Reputation for unique methods & twice winner of industry’s ‘Best Methodology’ S Reputation as research leader in the difficult, ‘Fragile-front
Slide 3: 2008 Highlights
2008 Highlights S 49% increase in revenues from our new to the world ‘Juicy’ products to £4.3m S 45% office coverage of potential global research market [42% in 2007] S 115 to 140 clients, including 9 of the world’s top 20 advertisers [7 in 2007] S 42% increase in revenue to £9.3m - all organic (200
Slide 4: 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 Telefonica S Founder Brand Genetics S Assistant Treasurer of S E&Y Emerging Fosters Brewing Group Entrep
Slide 5: Management Team
Management Team NL MD CH MD Evert Bos Mark Johnson S 14 years’ marketing S 10 years’ experience & research experience in consumer insight and S Head of Market market research Research at Bestfood S Strong track record of S Unilever Marketing innovation UK MD US MD DE MD Jim Rimmer Ari Popper Jonatha
Slide 6: Addressable market
Addressable market 2007 = $28bn total market (84% quantitative) Research Full service Online buyers solutions panels % By Type % By Spend Strategic research Omnibus Consumer B-2-B Continuous Ad hoc Other Public Sector [BrainJuicer logo is where the group operates not market share] 7
Slide 7: The Competition
The Competition Market research is a $28 bn marketplace The BrainJuicer difference S Innovative 2-in-1 research approach delivering greater diagnostic insights S Reputation for unique methods & twice winner of industry’s ‘Best Methodology’ S Reputation as research leader in the difficult, ‘Fragile-f
Slide 8: Growth of Market Research
Growth of Market Research 25 6 20 5 4 15 US$bn US$bn 3 10 2 5 1 0 0 00 01 02 03 04 05 06 07 00 01 02 03 04 05 06 07 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 US Online MR Japan + ROW MR Global MR offline Europe Online MR ESOMAR Industry Reports 2005/6/7 + Inside Research US & European Online M
Slide 9: Evolution of Market Research
Evolution of Market Research 2000 2007 2014 US online MR 10% US online MR 21% US online MR 40% EU online MR <1% EU online MR 10% EU online MR 40% estimated Data Collection Revolution Market Research Revolution Faster More value add Cheaper More insightful More honest More creative 10
Slide 10: A Decade of Outstanding Performance
A Decade of Outstanding Performance 9500 S Strong 40%+ top line sales growth since launch, 10 years ago 9,322 S Offices in 7 markets & research in 54 countries, 36 languages S The business has been profitable every year except 2003 7500 S Became a Public Company in 2006 6,566 Revenue £000's 5500 4,6
Slide 11: Six Juicy Products and Plenty of Twist
Six Juicy Products and Plenty of Twist Freshly squeezed insight & innovation powered by award winning tools & researchers 70 staff; offices US, CA, UK, DE, CH, NL, AU 10 years working with clients in 54 countries Innovative Final Mix Launch Track Methods For insight And innovation 2005 Seek emtion
Slide 12: Main products
Main products Jan to Dec 2008 1250 Twist Juicy 1194 GM per hour 1170 1000 46% 54% 750 792 GM £000's Juicy Twist 626 500 389 250 299 253 164 206 196 165 202 163 176 198 53 0 Predictive Insights CommScan QT / Pitch Creatives Famcam Concept Tracking Markets Adviser Optimizer 13
Slide 13: Six Juicy Products
Six Juicy Products Predictive Markets Insight Validator™ Awarded ESOMAR Best Quantitative testing of insights Methodology 2005, utilises the to sort wheat from chaff and wisdom of crowds to better ensure the best consumer screen concepts & promotions hook is used and optimised [8 of global top 20 ad
Slide 14: Revenue by product
4500 74 203 FamCam 4000 382 3500 Creatives 858 3000 34 359 QT / Pitch Revenue £000's 2500 Adviser 195 1231 2000 ComScan 1500 1805 366 Insights 1000 1568 930 500 506 Predictive 232 Markets 0 2006 2007 2008 15
Slide 15: BrainJuicer Labs Commitment to Innovation
BrainJuicer Labs Commitment to Innovation 16 FamilyCam™ Mobile Moments of Truth™ Wire up homes for long-term Real-time research / Insights online ethnography & product e.g. shopper marketing, testing, as an inspirational & events, touch points ad insightful research resource tracking, new launch tra
Slide 16: Geographic coverage
Geographic coverage Countries in which BrainJuicer has offices = 5 57% global research market Countries in which BrainJuicer has licence partners = 2 Countries in which BrainJuicer has conducted research = 54 90% global research market 17
Slide 17: What Our Multinational Clients Are Saying
What Our Multinational Clients Are Saying… “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 im
Slide 18: What Our Multinational Clients Are Saying
What Our Multinational Clients Are Saying… “FaceTrace™ has been instrumental in understanding the emotional power of our communication & its influence on subsequent consumer behaviour. I am not sure it would have been possible with ‘traditional’ methods" Yvan Goupil – Insights Director – Pepsico Int
Slide 19: Gross Profit
Gross profit 7000 2007 2008 6000 5000 Gross Profit £000's 4000 6,864 3000 4,839 4,209 2000 3,110 1000 1,434 1,497 1,158 295 0 Total UK Holland US 20
Slide 20: Profit by region
4000 770 NL 3000 966 2000 2735 UK 528 1000 2035 Profit £000's 1502 US 465 0 -1488 -1000 -1961 CH -2623 -65 -2000 -195 -57 Central -3000 2006 2007 2008 21
Slide 21: Profit margin
Profit margin 50 40 30 20 '06 '06 '07 '08 '06 '07 '08 '06 '07 '08 '07 '08 10 15 16 15 14 12 11 12 13 9 10 0 % -14 -10 -20 -41 -30 -40 -50 UK NL US Total 22
Slide 22: Profit and loss
Profit and loss £000s UK NL US CH Central Total 2007 growth Revenue 5,613 2,083 1,612 14 0 9,322 6,566 42% Direct costs -1,414 -586 -454 -4 0 -2,458 -1,727 42% Gross Profit 4,199 1,497 1,158 10 0 6,864 4,839 42% Staff costs -918 -505 -392 -47 -1,569 -3,431 -2,431 41% Bonus -159 -16 -152 -7 -127 -461
Slide 23: Strategy for growth
Strategy for growth Innovation =Mandates from the Largest global 1st Priority companies 2nd Priority S China S Russia S Japan Size/Geography S Brazil S France S Italy S Spain S India 24
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