System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — H1 2007 Earnings Presentation
20 slides from System1's earnings presentation, September 2007
Slide 1: The Quantitative MindReading Agency: 2007 Interim Results
The Quantitative MindReading Agency Presentation 2007 Interim Results September 2007 1
Slide 2: About BrainJuicer
About BrainJuicer® A leading international online market research agency Innovative, bespoke software produces insightful research Multinational client base; 12 of world’s top 50 companies Over 80 clients, research in over 50 countries, over 30 languages Online research is a high growth ma
Slide 3: BrainJuicer Management Team
BrainJuicer® Management Team CEO CFO John Kearon James Geddes 20 years experience 20 years financial Unilever Research/Mktg management experience Publicis Planning Director CFO of IOBox - sold to Telefonica Founder Brand Genetics Assistant Treasurer of E&Y Emerging Fosters Brewing Gr
Slide 4: Growth of Market Research
Growth of Market Research Growth = 46% 3 Growth = 336% Annual compound 7% Annual compound 28% 20 2.5 2 15 US$bn US$bn 1.5 10 1 5 0.5 0 0 00 01 02 03 04 05 06 00 01 02 03 04 05 06 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
Slide 5: BrainJuicer Offering the Best of Both
BrainJuicer Offering the Best of Both… Qualitative Quantitative Consumer habits/attitudes Spontaneous thoughts Consumer Segmentation Creative projections Brand/Market Mapping Free associations Consumer Deep-Dive Idea generation Volume Predictions Robust data & Reasons why Concept testing
Slide 6: BrainJuicer Products
BrainJuicer Products Exploration Screening Evaluation Prediction Launch Tracking Multi-nationals Large Domestics 7
Slide 7: BrainJuicer Innovation
BrainJuicer Innovation… Insight Validator™ from 13.5% to 28.4%, 1H 06 to 1H 07 Creative Sixers™ adopted by 4 multi-nationals since 2007 launch Exploration Predictive Markets from 3.6% to 9.5%, 1H 06 to 1H 07 Screening FaceTrace™ short listed for ESOMAR award Evaluation Prediction Launch Trac
Slide 8: How Potent are your Insights?
How Potent are your Insights? 1. Insights rated on each KPI using 2. VALIDATED = Green area above 3. REWRITE = Amber area 4. THINK AGAIN = Red Area below country norms, split into quintiles & the dotted lines represents above between the dotted lines represents dotted line box represents poor plotte
Slide 9: FaceTrace
FaceTrace™ Which of these faces best expresses how you feel about this idea? To what degree did this idea make you feel [selected emotion]? And what was it about this idea that made you feel this way? [Use MindReader to capture reasons for each emotion] 10
Slide 10: Let the Creatives create & the Market decide
Ensuring the biz is working with great concepts Let the Creatives create & the Market decide Creative Predictive Sixers™ Markets Use 50 ‘Creative Sixers’ 15 ideas in a Predictive Market to generate 50 unique ideas where 500 select the most Potent 2 weeks brief-to-debrief 2 weeks brief-to-debrief Six
Slide 11: Experiment 7: Bets Placed for the Winner of X-Factor 2006
Experiment 7: Bets Placed for the WINNER of X-Factor 2006.. £10 to Win Odds £10 on the act the PM Provided each week predicted would win by Ladbroke.com £ Winnings 1 £10 Leona / £10 Kerry 7-1 / 5-1 £60 2 £10 Leona 3-1 £40 3 £10 Leona / £10 Ben 3-1 / 6-4 £30 4 £10 Ben 6-4 - 5 £10 Leona 2-1 £30 6 £10
Slide 12: BrainJuicer's Global Reach
BrainJuicer’s Global Reach BrainJuicer conducts projects in over 50 countries and in more than 30 languages 13
Slide 13: BrainJuicer Financials
BrainJuicer Financials Revenue increased by 57% to £2.9m (1H 2006: £1.8m) Operating profit increased by 13% to £147k (1H 2006: £130k) All business units demonstrated strong performance: 177% revenue growth in the Holland Continued strong performance in UK US business on target to break e
Slide 14: Operational highlights
Operational highlights Solid relationships with key clients: Increased major client base from 10 to 12 of the world’s top 50 companies 84% of revenue in this period was from repeat business Average revenue per project increased to £14.4k (1H 2006: £11.7k) Strengthened team: Appointment o
Slide 15: Consolidated Income Statement
Consolidated Income Statement Year ended 31 Six months ended Six months ended December 30 June 2007 30 June 2006 2006 Unaudited Unaudited Audited £’000 £’000 £’000 Revenue 2,901 1,849 4,608 Cost of sales (733) (406) (1,189) Gross profit 2,168 1,443 3,419 Administrative expenses (2,021) (1,313) (3,29
Slide 16: Balance Sheet
Balance Sheet 30 June 2007 30 June 2006 31 December 2006 Unaudited Unaudited Audited £’000 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 89 71 77 Intangible assets 119 1 1 Deferred tax asset 322 - 213 530 72 291 Current assets Inventories 27 1 45 Trade and other receivables 1,6
Slide 17: Competitive landscape
Competitive landscape Market research is a $24.5 bn marketplace The BrainJuicer difference: Bespoke software delivering greater diagnostic insights Quantitative research with the depth of qualitative feedback Fuzzy-front-end focus with large multi-nationals Reputation as innovation leader Global – o
Slide 18: Strategy for Growth
Strategy for Growth New Products Geographic expansion Existing Clients 80% 20% New Clients Continued technology improvements 19
Slide 19: Appendix
The Quantitative MindReading Agency Appendix Background 20
Slide 20: Market Research Evolution
Market Research Evolution 2000 2006 2010 BrainJuicer Offline Online Estimate US online MR 10% US online MR 33% US online MR >50% EU online MR <1% EU online MR 3% EU online MR >30% Offline Advantages Online Advantages • Representative than online • More representative • Greater tactile capabilities •