Slide 1: Ebiquity Plc Full Year Results
| | 1 ie Ebiquity Plc Full Year Results Full Year Ended 31 December 2023 7 May 2024 ebiquity
Slide 2: Performance remained positive despite more challenging conditions
2023 Performance remained positive despite more challenging conditions driven by continued margin improvement Revenue growth of Adjusted operating profit up Adjusted operating profit margin up 280 basis points to Continuing focus on transformation with progress transitioning service provision to GMP
Slide 3: Financial overview
Slide 4: Income Statement
Represented* December December Change Income Statement 2023 2022 £m £m £m % Revenue 80.2 75.1 5.1 6.8% Project related costs (7.4) (7.2) (0.2) (1.9%) Staff costs1 (48.5) (47.4) (1.1) (2.3%) Other operating expenses1 (12.3) (11.2) (1.1) (9.5%) Adjusted Operating Profit1 12.0 9.2 2.8 31.1% Net Finance
Slide 5: Revenue by Segment
Continued operational momentum with total group revenue Revenue by Segment growth of 6.8%. ém 2023 v 2022* Continued revenue growth in North America of 33% (2022: 35.0 50%), 30.0 25.0 Growth in UK & Ireland of 19% driven by large clients 20.0 Continental Europe revenue reduction (11%) Some European
Slide 6: Segmental Adjusted Operating Profit
Adjusted operating Segmental Adjusted Operating Profit . . profit margin 2023 v 2022 Segment 15.0 10.0 so UK & Ireland 24.6% 25.3% | = Unallocated Continental Europe 32.0% 23.9% °-© Uk ireland Continental North America APAC Underlying Profit North America 13.6% 7.2% Europe - Continuing (6.0) Operati
Slide 7: Transformation and Highlighted Items
2023 | 2022 ion: Highlighted Items Transformation: ighlig £m —m Committed to implementing cost savings totalling Amortisation and Impairment 63 3.0 Post-acquisition accruals and charges 24 79 annualised £5 million. Professional charges relating to acquisitions and aborted acquisitions 18 19 Agency S
Slide 8: Net assets increased by £5.4m
Net assets increased by £5.4m Net working capital of £8.4m, reduced slightly from £9.4m prior year Debtor days increased slightly to 69 days from 67 days (2022) Deferred consideration £4.0m for MMi Net debt of £12.0m comprises £10.0m cash and £22.0m bank loan (2022: cash £12.4m; bank loan £21.5m) In
Slide 9: Cash Flow
Adjusted Cash inflow from operations of £11.5m (2022: Cash Flow (including highlighted items) £3.8m) Adjusted Cash generated from Continuing ns 38 Investing activities include: operations . : £1.6m R&D additions (2022: £0.2m) Post date remuneration paid (6.4) - £0.4m tangible asset additions (2022:
Slide 10: Bank facility and liquidity
Bank facility totals £30 million through to 24th April 2028 Liquidity Covenants under bank facility applying: Interest cover at > 3.0 Gross Debt (22.0) (218) Adjusted leverage < 2.5 Cash Balances* 10.0 12.4 Adjusted deferred consideration leverage < 3.5 Loan fee prepayments o1 03 Net Bank Debt (11.9
Slide 11: Market context
Slide 12: Ad Spending Growth for Digital, Traditional, and Total Worldwide
Ad Spending Growth for Digital, Traditional, and Total Worldwide, 2022-2027 % change 13.2% 91% 9.2% 2.4% 1.4% 09% . T T 2022 2024 2025 2026 2027 AT% M Digital MM Traditional Total Note: digital ad spending includes advertising that appears on desktop and laptop computers as well as mobile phones, ta
Slide 13: Companies With Over $10 Billion in Net Digital Ad Revenues
Companies With Over $10 Billion in Net Digital Ad Revenues Worldwide, 2024 billions Sooge $172.08 iphabet quot; Biieate $1708 onan I ss250 oe ls — buoy $755 sot fsvsss ol rencenrna [fj s14.38 Srvasiou I st.69 softtam fj $10.49 CG Fst036 Note: nhs advertising that appears on desktop and laptop computars
Slide 14: Ebiquity is a data analysis company for advertisers
Ebiquity is a data analysis company providing actionable intelligence and consultancy services for advertisers globally Our expertise lies in analysing large quantities of media transaction data to eliminate wasteful spend and find opportunities to improve the efficiency and effectiveness of media i
Slide 15: Services provided through four Service Lines
Media Management The right media models, partners, operations, processes and technology to achieve objectives Services provided through four Service la Media Performance >» Greater transparency, governance, efficiency and accountability of media investments nes C4 Marketing Effectiveness Attributed,
Slide 16: Competitors
MEDIALINK AUTA Company sy. _———— Mp. 6s CORTEX r= pwe YA MediaSense” 7) Sa Mu eo A => (lh | | @ EuropeMeviaLas AI LECH] @ stars4neoia IC Deloitte. r 7
Slide 17: Media Management and Media Performance
Media Management US$35bn of media spend reviewed globally in Agency Selection processes in 2023 55% national vs 45% multi-market 37% in the US 79% of multi-market managed by a consultant (US$12bn) Ebiquity No1 market share with 33% of volume (MediaLink 19%, PwC 10%, MediaSense 9%) Estimated fee inco
Slide 18: Marketing Effectiveness market opportunity
UK market - estimated fee income opportunity c £75m US market — c 5x Continental Europe and Asia Pacific much less developed Larger advertisers may have their own Marketing Effectiveness teams in-house Most media agencies have this capability <*> Nielsen TN Analytic Partners G Al N KANTAR Ekimetrics
Slide 19: Contract Compliance and top advertisers opportunity
World's top 100 advertisers - c $100bn in ad spend Estimated total fee income opportunity - c £30m Expansion opportunity into other marketing disciplines MEDIA MARKETING COMPLIANCE pwe
Slide 20: Market authority through scale of data pools
») Market authority through scale of data pools - $32bn media value in data lakes; 3.1tr impressions analysis of 122 countries; experts in-market representing 80% of global ad spend Client roster - >75 of the world’s largest advertisers Ww Innovation — CO2 emissions, harmful disinformation, Connecte
Slide 21: Progress against strategy
Slide 22: Geography, Clients, Operating Efficiency
{0} @fe) am») } Geography Clients Operating Efficiency Accelerate growth in Productized digital Develop higher value Increase automation, North America and Asia services, innovation for strategic relationships transform operating Pacific rapidly growing channels, model diversify service offering
Slide 23: Purpose of the transformation programme
Purpose of the transformation programme is to improve the operating efficiency of the business Changing from people intensive collection and analysis of data by in-market teams To increased use of technology and globally mutualised delivery teams in lower cost centres And to enhance client experienc
Slide 24: Transition of service delivery onto GMP365
The programme involves the transition of service delivery on to the GMP365™ data management platform for Agency Selection work (Media Management), ValueTrack and Benchmarking (Media Performance) Significant investment in training with c 50% of Ebiquity workforce having experienced training on the pl
Slide 25: Challenges of the transformation
The media agencies are key stakeholders required to provide the data for our analysis. Our new approach necessitates wholesale changes in process Clients have been used to buying highly customised services. Increased use of technology has client benefits but reduces degree of customisation Local mar
Slide 26: Digital Media Solutions, Benchmarking and ValueTrack
Q Pp OBli}© 5% & Digital Media Solutions * Digital Media Governance * Responsible Media Investment * Paid Search Forensic + Advanced TV * Circle Audit (US only) * Retail Media (in pilot) jo Streamlined approach to digital governance Data housed in the Media Data Vault Pool Benchmarking * Benchmarkin
Slide 27: Digital Media Solutions
Productised solutions designed to help advertisers eliminate waste from their digital supply chain - more than US$1bn value identified since inception There are now 84 clients buying from the portfolio of digital media solutions 2023 revenue growth of 22% and maintaining strong margins Now represent
Slide 28: Innovation and product development
Ebiquit leader in media investment anal First development of Al use case to speed internal data processing CO2 measurement solution now available as a module within Governance Advanced TV product for the US has demonstrated a clear value proposition; now in process of scaling Improved automation of
Slide 29: North America performance
2023:- North America was the standout performer with revenue growth of 32% Adjusted operating profit margin has continued to improve to 14% Success largely driven by increased sales of digital solutions and expanding relationships with existing clients, and productive new business activity with the
Slide 30: UK, Europe and Asia Pacific
2023:- resilient performance in the UK despite difficult market conditions Somewhat varied performance in Continental Europe with strength in France and Spain, but softness in Germany and Italy 2024:- the European business has started the year well Italian business demonstrating good recovery in H1
Slide 31: Higher value strategic clients
Revenue from universe of higher value strategic clients +15.5% 101 clients now buying two or more Service Lines Have successfully expanded relationships including major global Media Management work for FERRERO and ,and A global Media Performance work for \ J DANONE Multi-market Media Management assi
Slide 32: New business wins
Securing new business from AMGEN and Johnson&vohnson has contributed to the growth in North America, and the expansion of services provided to GM The Deny) relationship has expanded into Europe for Media Performance work In Asia Pacific the China business has produced a steady string of new business
Slide 33: Summary
Slide 34: Key client and data KPIs 2020-2023
2020a 20214 2022a 2023a Be # clients buying 2+ service lines 58 76 97 101 & # clients buying Digital Media Solutions 10 28 55 84 a Volume of digital impressions analysed in Media Data 01 0.6 14 27 Value of digital advertising analysed in Media Data Vault $0.5bn $3.0bn $6.6bn $14.1bn # clients servic
Slide 35: 2023 delivery and 2024 outlook
2023 Delivered continued growth and margin improvement despite more challenging market conditions that included some budget cuts in Q4 US performed well winning new business and cross- selling our digital solutions Developed higher value strategic clients with further cross-selling of Service Lines
Slide 36: Ebiquity is the world leader in media investment analysis
ebiquity Ebiquity is the world leader in media investment analysis We deliver data-driven solutions that create value and eliminate waste, enabling brand owners to increase returns from their media investments and improve business outcomes Our independent, fact-based advice is delivered through four