Yougov Plc · LSE:YOU
Yougov — H1 FY2018 Earnings Presentation
41 slides from Yougov's earnings presentation, March 2018
Slide 1: Interim Results to 31 January 2018
Interim Results to 31 January 2018 Delivering on our goals, advancing our strategy
Slide 2: Summary
Interim Results to 31 January 2018 Summary Strong revenue growth of 10% (well ahead of the market average of approximately 3%) Adjusted operating profit up by 56%; UK up 89%, USA up 56% Global Data Products & Services driving growth: now 49% of Group revenue Cash conversion of 85%: cash bala
Slide 3: On track to deliver our five-year growth plans
Interim Results to 31 January 2018 On track to deliver our five-year growth plans 56% growth GROUP ADJUSTED OPERATING PROFIT in the 16.0 period 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 £m FY14 FY15 FY16 FY17 FY18 Half Yr Full Yr 3
Slide 4: Proportion of revenue from Data Products & Services has grown as planned
Interim Results to 31 January 2018 Proportion of revenue from Data Products & Services has grown as planned GROUP REVENUE BY SEGMENT 60.0 50.0 49% 40.0 30.0 29% 20.0 10.0 0.0 £m H1 FY14 H1 FY15 H1 FY16 H1 FY17 H1 FY18 Custom Research Data Products & Services Early achievement of a key five-year obje
Slide 5: Custom Research profitability continues to improve
Interim Results to 31 January 2018 Custom Research profitability continues to improve Another key five-year objective has been to raise profit margins in Custom Research In this half-year, there was a 2% reduction in Custom Research revenue due to deliberate focus on higher margin activities Y
Slide 6: Financial Update
Financial Update Alex McIntosh - CFO
Slide 7: Financial Highlights
Interim Results to 31 January 2018 Financial Highlights 6 months to 6 months to 31 Jan 2018 31 Jan 2017 % Change £m £m Revenue 56.3 51.4 10% Adjusted Operating Profit* 8.8 5.7 56% Adjusted Profit before Tax 10.7 6.3 69% Adjusted Earnings per Share 7.3p 4.2p 74% *Adjusted operating profit is defined
Slide 8: Group Income Statement
Interim Results to 31 January 2018 Group Income Statement 6 months to 6 months to Revenue growth of £4.9m 31 Jan 2018 31 Jan 2017 Gross Margin up by 2% £m £m Operating Expense Ratio Group Revenue 56.3 51.4 decreased by 3% to 65% Adjusted Operating Margin up Cost of Sales (10.8) (10.8) 5% to
Slide 9: Balance Sheet
Interim Results to 31 January 2018 31 Jan 2018 31 Jan 2017 Balance Sheet £m £m Non-Current Assets Receivable days Goodwill 42.2 44.2 decreased from 62 days Other intangible assets 10.9 10.9 to 49 days Other non-current assets 11.2 9.5 64.3 64.6 Creditor days Current Assets decreased from 35 days
Slide 10: Cash Flow
Interim Results to 31 January 2018 Cash Flow 6 months to 31 Jan 2018 6 months to 31 Jan 2017 £m £m Cash flow generated from Cash flows from operating activities: operations of £7.5m Statutory operating profit 4.4 2.5 Conversion into cash of Non cash movements 6.1 4.0 85% of Adjusted Operating Pr
Slide 11: Segmental Analysis by Product & Service - Revenue
Interim Results to 31 January 2018 Segmental Analysis by Product & Service - Revenue % % 6 months to 6 months to Change Change at 31 Jan 2018 31 Jan 2017 Constant £m £m Currency Data Products 14.4 11.0 31% 34% Data Services 13.4 11.0 22% 23% Total Data Products & Services 27.8 22.0 27% 29% Custom Re
Slide 12: Segmental Analysis by Product & Service – Operating Profit
Interim Results to 31 January 2018 Segmental Analysis by Product & Service – Operating Profit 6 months 6 months Operating Margin % to to Six months Six months % 31 Jan 31 Jan to 31 to 31 Change 2018 2017 January January £m £m 2018 2017 Data Products 4.8 2.8 75% 34% 25% Data Services 3.5 2.5 41% 26%
Slide 13: Segmental Analysis by Geography - Revenue
Interim Results to 31 January 2018 Segmental Analysis by Geography - Revenue 6 months to 6 months to % % 31 Jan 2018 31 Jan 2017 Change Change Revenue Revenue at Constant £m £m Currency USA 23.3 19.7 18% 25% UK 14.5 12.5 15% 15% Middle East 6.0 7.5 (20%) (16%) Germany 4.5 5.3 (15%) (18%) Nordic 4.9
Slide 14: Segmental Analysis by Geography – Operating Profit
Interim Results to 31 January 2018 Segmental Analysis by Geography – Operating Profit 6 months to 6 months to 6 months to 6 months to 31 Jan 2018 31 Jan 2018 31 Jan 2017 31 Jan 2017 Operating Profit Margin Operating Profit Margin £m % £m % USA 7.9 34% 5.1 26% UK 5.8 40% 3.1 25% Middle East 1.3 22% 1
Slide 15: Operational & Strategic Update
Operational & Strategic Update Stephan Shakespeare - CEO
Slide 16: YouGov is a global data and analytics company
Interim Results to 31 January 2018 YouGov is a global data and analytics company Our core offering of opinion data is derived from our highly participative panel of 6 million people worldwide on a variety of data collection platforms Last year, YouGov panellists completed over 25 million surveys You
Slide 17: BrandIndex
Interim Results to 31 January 2018 Growth in the Our flagship brand Revenue Growth period: intelligence service 25 24% Global expansion and integration with Profiles 20 driving growth 15 400+ client worldwide 10 Covers 32 markets worldwide; Italy, Spain, Philippines, Taiwan and 5 Vietnam rec
Slide 18: Profiles
Interim Results to 31 January 2018 Growth in the period: Our ground-breaking audience Revenue Growth 99% planning and segmentation tool 4 Now available in 13 markets 4 across the UK, USA, Europe and 3 Asia Pacific 3 200 clients worldwide 2 Sales driven by increased 2 interoperability between
Slide 19: Omnibus
Interim Results to 31 January 2018 Growth in the Online fast-turnaround service Revenue Growth period: 24% 25 Increasing numbers of BrandIndex and Profiles clients are taking advantage of the new ‘re-contact’ 20 service via Omnibus 15 Attracting more multi-national clients, leading to more mul
Slide 20: Custom Research
Interim Results to 31 January 2018 Quantitative and qualitative research directed by our sector specialists Adjusted Operating Profit Margin Growth Scope, scale and complexity of projects varies: 30% • One-off studies 25% • Tracking studies for individual clients • Syndicated studies sold to mul
Slide 21: Case Study: Dentsu Aegis Network adopts YouGov Profiles, replacing incumbent Kantar TGI
Interim Results to 31 January 2018 Case Study: Dentsu Aegis Network adopts YouGov Profiles, replacing incumbent Kantar TGI • In October 2017 it was announced that Global Media Group Dentsu Aegis Network had adopted YouGov Profiles for its audience understanding, strategy and activation purposes, rep
Slide 22: EU GDPR & YouGov Direct
Interim Results to 31 January 2018 EU GDPR & YouGov Direct New EU rules will require new forms of permissioning for the use of personal data YouGov panelists’ explicitly permissioned and paid-for data, aggregated into products and services, complies with the EU General Data Protection Regulation
Slide 23: Strategic Developments
Interim Results to 31 January 2018 Strategic Developments We continue to develop the elements of the YouGov connected data system, including: New mobile app and websites being rolled out worldwide YouGov Profiles now being delivered on our analytics tool, Crunch Expanding our reach to further
Slide 24: Outlook
Outlook What the world thinks
Slide 25: Group Outlook
Interim Results to 31 January 2018 Group Outlook Demand for our syndicated data products remains strong Further opportunities for growth of custom research aligned with our core connected-data offering Second half trading continues positively and we are accelerating our investment in technolog
Slide 26: Appendix
Appendix Blockchain Innovation & Investment Summit (BII SUMMIT): presentation slides
Slide 27: How blockchain can turn privacy concerns and GDPR into a massive opportunity
How blockchain can turn privacy concerns and GDPR into a massive opportunity direct.yougov.com Stephan Shakespeare, CEO, YouGov plc Dubai BIIS, 19th March 2018 27
Slide 28: Introducing YouGov Direct
Introducing YouGov Direct Our blockchain innovation - YouGov Direct - aims to… • Strengthen privacy and citizen control of their data • Expand applications of our data to ad targeting • Add validation at granular level • Increase efficiency of our operations 28
Slide 29: Problems Internet Users Face
Problems Internet Users Face The problem for users: • Unfair forfeit of privacy • Lack of user control over the way their data is used • No incentive to share data • Low incentive to engage with ads What do people want? • More online security • Control over what and how personal information is share
Slide 30: Challenges Advertisers Face
Challenges Advertisers Face The issues: • Advertisers not sure if ads are watched by humans or bots • More Internet users employing ad blockers because ads are poorly targeted • Ad revenue declining for agencies who lose the trust of clients • Producers of the content audiences love are not compensa
Slide 31: EU General Data Protection Regulation
EU General Data Protection Regulation Ideas behind GDPR: • EU is creating protections for citizen online privacy • Regulations come into force May 2018 • Businesses must ask user permission prior to using user data • Stringency on passing of data from one party to another • Creates transparency betw
Slide 32: Our two blockchain products (in development)
Our two blockchain products (in development) Two products to increase user control and commercial efficiency: • YouGov Direct • YouGov Direct members choose which personal data they are willing to share with advertisers • Rewards for members every time their data is used • Advertisers gain access to
Slide 33: Integration of blockchain
Integration of blockchain Reason for using blockchain • Gathering permission shouldn’t just be check-box • Turns permissions into transactions in an auditable work-stream • Develops partnerships between advertisers and audience • Record of transactions can be referenced by businesses to verify they
Slide 34: Our solutions for Members
Our solutions for Members Value/efficiency created for members: • Better experience of ads (more relevant because of the quality of data being used for targeting) • Empowerment / protection of privacy (members determine how their data is used) • Rewards for members for every permissioned use of thei
Slide 35: Our solution for Advertisers and Publishers
Our solution for Advertisers and Publishers Value/efficiency created for advertisers and publishers: • Fair sharing of advertiser spend • Better results for advertisers • Audited delivery that meets GDPR requirements • Returns control to publishers over their own site • Better on-site experience for
Slide 36: More on our Publisher Cooperative
More on our Publisher Cooperative • YouGov (and Publisher) obtain necessary permission from members (and own site visitors) for GDPR compliance • YouGov provides software to publisher (no skills required by publisher) that combines data gathered by publisher with known attributes provided by YouGov
Slide 37: How does YouGov Direct work?
How does YouGov Direct work? (Please note: while targeting of ads is the main theme of this presentation, the YouGov Direct process of permissioned use of data within safe direct contact is intended for use in all forms of client-panelist interaction within or through YouGov, whether for conducting
Slide 38: Dashboards for members and clients
1) DASHBOARD 2) DASHBOARD FOR MEMBERS FOR CLIENTS Members manage their data for Clients define required target sharing (through surveys and groups from aggregated dashboard editing) characteristics on offer 4) MEMBER GETS 3) CLIENT SENDS MESSAGE/TASK MESSAGE/TASK Member decides whether to accept Cli
Slide 39: YouGov Direct means...
YouGov Direct means... • data never passes from member to third party • every use of member data is individually and actively permissioned • third party can never track a member through this process • clients can contact members without YouGov interaction • YouGov sets the rules, certifies data, val
Slide 40: YouGov Direct can be used for...
YouGov Direct can be used for... • Conducting self-service research with granular respondent definitions • Testing concepts, ads, offers • Delivering targeted advertising • Any other communication or interaction allowed by YouGov & Member 40
Slide 41: Don't Just Collect Data. Connect Data.
Don't Just Collect Data. Connect Data. You YouGov