Slide 1: Interim Results Presentation, 6 Months Ended 30 June 2018
ebiquity INTERIM RESULTS PRESENTATION 6 MONTHS ENDED 30 JUNE 2018 September/October 2018
Slide 2: Agenda
AGENDA Brief Overview of Ebiquity H1 '18 Highlights . Strategic Update . Financial Performance . Summary ou RWN 3 . Financial Appendices ebiquity
Slide 3: 1. Brief Overview of Ebiquity
1. Brief Overview of Ebiquity
Slide 4: Overview of Ebiquity
OVERVIEW OF EBIQUITY Ebiquity is a leading independent marketing and media consultancy LARGE ADVERTISERS ‘LEFT BRAIN’ ADVISORY FULL INDEPENDENCE DRIVING ACCOUNTABILITY We work with 80 of the world's top 100 advertisers and leading brands within the world's largest markets A focus on helping marketer
Slide 5: Four practice areas covering critical CMO challenges
OVERVIEW OF EBIQUITY We go to market with four practice areas, each covering critical CMO challenges Ebiquity Media Achieve greater transparency of your media spend and Ebiquity Analytics Build an evidence- based marketing programme rooted in Ebiquity Tech Select the right technology ecosystem to cr
Slide 6: Team and offices covering major advertising markets
OVERVIEW OF EBIQUITY Our team of 900 FTEs in 20 offices cover the major advertising markets @ Ebiquity market presence
Slide 7: Leading global and national brands across industry verticals
OVERVIEW OF EBIQUITY We work with leading global and national brands across industry verticals ° & &. @ @ ¥ = vodafone HSBC > HEALTH » HYGIENE y HOME 3: ce VISA a ebay LOREAL: sky Mondeléz, as Fidelity (Y\ fee HHS se ainitea g am ~~ E-
Slide 8: Market leadership position in many service areas
OVERVIEW OF EBIQUITY We hold a market leadership position in many of our service areas #1 in media performance measurement with ~60% share, more markets, biggest pool, and better clients than any competitor #1 in media agency selection with ~100 assignments per year #1 in contract compliance auditin
Slide 9: 2. H1 '18 Highlights
2. H1 “18 Highlights
Slide 10: H1'18 Highlights: revenue growth by practice
H1'18 HIGHLIGHTS Strong revenue performance from Media, Analytics, and Tech, while the Intel practice declined by 8.8% Like for Like* (LFL) ANALYTICS MEDIA & TECH INTEL TOTAL Reported revenue growth 49% 15.9% (12.8)% 19% Like for Like (LFL) 6.4% 11.7% (8.8)% 3.4% revenue growth *Like for like ("LFL"
Slide 11: Operational and Market Highlights
H1'18 HIGHLIGHTS Operational and Market Highlights » Planned sale of Intel business to Nielsen (announced in February 2018), subject to Phase 2 investigation by the CMA, is expected to conclude in December 2018 » Investment of £1.5m in continuing to scale the Media, Analytics and Tech practices and
Slide 12: Financial Highlights
H1'18 HIGHLIGHTS Financial Highlights » Total revenue up 1.9% on a reported basis to £45.5m (HY2017: £44.6m), with LFL revenue up 3.4% against 2017 » Strong sales performance from Media and Analytics & Tech segments with LFL revenue up 7% » Intel LFL revenue down 8.8% impacted by some client losses
Slide 13: 3. Strategic Update
3. Strategic Update
Slide 14: Aligning service offering against key strategic opportunities
HIGHLIGHTS We are continuing to align our service offering against several key strategic opportunities TREND OPPORTUNITY 1, CONTINUED DRIVE FOR TRANSPARENCY » Still ranks first among the industry's biggest challenges in 2018 » Almost half of all marketers believe it is the leading industry issue — =
Slide 15: H1 2018 investments in client and operational capabilities
HIGHLIGHTS During H1 2018 we invested £1.5m to enhance our client and operational capabilities KEY INVESTMENTS DURING H1 2018 Media » Rollout of new data validation tool to drive efficiency and increased data security » Launched near-shore delivery centre » Piloting expanded and standardised digital
Slide 16: Investments leading to tangible results in H1 2018
HIGHLIGHTS These investments have already led to tangible results in H1 2018 Continued Leadership in Agency Selection » Significant client wins for multi- market agency management assignments, including McDonald's and FCA (Y\ FCA 16 » Global Wins in Advanced Analytics Large global assignments with s
Slide 17: H2 2018 initiatives
HIGHLIGHTS In H2 2018 we are focusing on the following initiatives » Working with the CMA during Phase II of their investigation into the planned sale of the Adintel business » Finalising Plan B for the Intel practice » Investing in strengthening our Media and Analytics and Tech practices » Evolutio
Slide 18: 4. Financial Performance
18 4. Financial Performance
Slide 19: Revenues up 1.9%; underlying profit before tax of £3.6m
FINANCIAL PERFORMANCE Our revenues are up +1.9% (LFL CC +3.4). Underlying’ Profit before Tax of £3.6m Six months Group ended June 2018 Revenue Underlying (U/L) Op Profit £4.2m U/L Op mgn 9.2% U/L PBT £3.6m U/L effective tax 297% rate U/L fully diluted EPS 2.8p Operating cash 168% flow Net Debt £25.7
Slide 20: Media segment
FINANCIALS - MEDIA SEGMENT Media LFL revenue up +5.9% to £28.0m, with strong performance from US and Contract Compliance Six months Six months Media ended ended June 2018 June 2017 Revenue £28.0m £26.7m Operating profit £7.3m £7.9m Margin 25.9% 29.5% 20 US Media performance bounced back strongly wit
Slide 21: Analytics & Tech segment
FINANCIALS - ANALYTICS & TECH SEGMENT LFL revenue up 11.7% led by new business wins in Advanced Analytics. Margin impacted by US performance and investment in Advanced Analytics and Tech Six months Six months Analytics & Tech ended ended June 2018 June 2017 Revenue £73m £6.3m Operating profit £0.4m
Slide 22: Intel segment
FINANCIALS - INTEL SEGMENT Intel revenue reduces by 8.8%, leading to significant decline in operating profit Six months Six months * LFL revenue down 8.8% impacted by contract Intel ended ended losses and impact of CMA investigation on new June 2018 June 2017 business Revenue £101m £11.6m * Revenue
Slide 23: Net debt decreased by £3.2m since December 2017
FINANCIALS Net debt decreased by £3.2m since December 2017 due to improved working capital management £m (7.0) 1.2 0.2 09 0.5 0.8 a a a Net Debt Cash from Interest Acquisitions Capex Dividends Highlighted Net Debt ei/1/18 Operations & Tax Items @30/6/18 23 ebiquity
Slide 24: Reduction in trade debtors and net accrued income
FINANCIAL PERFORMANCE Reduction of £0.9m in trade debtors and net accrued income Trade debtors & Net Accrued Net debt/EBITDA income (£'M) Jun %6 Dec 16 ce) 1.94 Jun 17 Dec 17 Jun-18 21.7 2% ebiquity
Slide 25: 5. Summary
25 5. Summary
Slide 26: Confident in long-term market opportunities
SUMMARY While the Intel practice has impacted our H1 results, we are confident in the long-term market opportunities as clients seek independent advice MARKET POSITION SUMMARY ng growth in Media, Analytics & Te : » 7% LFL growth in our core business practices Attractive client base » We work with 80
Slide 27: Thank you for your time
ebiquity Thank you for your time. About Ebiquity We are a leading independent marketing and media consultancy Our focus is on helping brands make better informed marketing investment decisions in A
Slide 28: 6. Financial Appendices
28 6. Financial Appendices
Slide 29: Foreign exchange impact on revenue
FINANCIAL APPENDICES 1.6% negative foreign exchange impact on revenue Euro £0.2m positive impact on revenue 2017 fx rate 1.16 2018 fx rate 1.14 US Dollar £0.6m negative impact Revenue by on revenue currency 2017 fx rate 1.26 2018 fx rate 1.38 AUS Dollar £0.3m negative impact. on revenue 2017 fx rate
Slide 30: Segmental reporting
FINANCIAL APPENDICES Segmental reporting 6m to June 2018 Media Intel Tech & Total segments Central costs Total Analytics Revenue 27,993 10,0 7,347 45,450 - 45,450 Underlying operating profit 7,203 512 422 8,137 (3,972) 4165 Margin 25.7% 5.1% 5.7% 18.0% 9.2% 6m to June 2017 Media Intel Tech & Total s
Slide 31: Highlighted items
FINANCIAL APPENDICES Highlighted items Share options charge Amortisation of purchased intangibles Severance and reorganisation costs Acquisition, integration and strategic costs Total 6m to Year to 31 6m to 30 June 2018 December 2017 30 June 2017 215 738 363 954 1,952 963 174. 2,364 784 508 1,437 88
Slide 32: Profit before tax
FINANCIAL APPENDICES Profit before tax 6m to Year to 6m to 30 June 2018 31 Dec 2017 30 June 2017 Underlying operating profit 4,165 12,026 6,723 Highlighted items (1,851) (6,491) (2,999) Reporting operating profit 2,314 5,535 3,724 Net finance costs/associates (606) (1,044) (S09) Reported profit befo
Slide 33: Underlying effective tax rate
FINANCIAL APPENDICES Underlying effective tax rate for the 6m to June 2018 6m to June Effective 2018 tax rate Underlying operating profit 4165 Interest/associates (606) Underlying PBT 3,559 CY Corp tax (702) CY Def tax (162) 29.7% PY under-prov'n (196) Underlying tax charge (1,060) 2,499 Underlying
Slide 34: Outstanding deferred consideration
FINANCIAL APPENDICES Outstanding deferred consideration As at 30 June 2018 Acquired 2017 Acquired 2016 Nature of business Operations Transaction date Transaction detail Cash up front Deferred consideration max Deferred consideration paid Estimated remaining deferred consideration: 2018 2019 2020 202
Slide 35: Statement of financial position
FINANCIAL APPENDICES Statement of financial position June 2018 December 2017 June 2017 Non current assets Goodwill 59,398 59,317 57,862 Purchased intangibles 6,997 7,966 8,551 Other 7,632 8,488 8,562 74,027 75,771 74,978 Current assets Trade debtors 18,097 20,978 19,700 Accrued income 12,717 8,706 9
Slide 36: Cash flow statement
FINANCIAL APPENDICES Cash flow statement 6m to Year ended 6m to 30 June 2018 31 December 2017 30 June 2017 Cash generated from operations 6,210 7,948 5,009 Net finance expense (S20) (921) (467) Income taxes paid (713) (2,207) (931) Net cash from operating activities 4,977 4,820 3,611 Investing activ
Slide 37: Cash generated from operations
FINANCIAL APPENDICES Cash generated from operations 6m to Year to 6m to June 2018 Dec 2017 June 2017 Profit before tax 1,708 4491 3,215 Adjustments 3,024 5,459 2,889 4,732 9950 6104 Increase in trade receivables (1,598) (4,094) (3,567) Increase in trade 3,076 £1,478k 2111 (£1,992k) 2,279 (£1,095k) p
Slide 38: Cash and net debt analysis
FINANCIAL APPENDICES Cash and net debt analysis Cash Gross debt Net debt Opening at 1 January 2018 4,325 (33,250) (28,925) Trading cash flow 6,210 - 6,210 Interest and tax (1,232) - (1,232) Debt repayments (625) 625 - Drawdown for acquisitions 2,000 (2,000) - Payments for acquisitions (248) - (248)
Slide 39: Summary of banking facility
FINANCIAL APPENDICES Summary of banking facility £45m multi-currency facility in place, (including £5m drawdown on Accordion) maturing in June 2020 Term loan of £10m of which £0.625m was drawn, repayable by September 2018 Includes £35m RCF of which £34m was drawn and £1.0m available Accordion option
Slide 40: Cash conversion
FINANCIAL APPENDICES Cash conversion 6m to 30 June 2018 Year to 31 December 2017 6m to 30 June 2017 Reported cash from operations Underlying cash from operations Underlying operating profit Cash conversion 6,210 7,004 4165 168.2% 7,948 11,203 12,026 93.2% 5,009 5,994 6,723 89.2% 40 ebiquity
Slide 41: Shareholder analysis at August 2018
FINANCIAL APPENDICES Shareholder analysis at 31 August 2018 Name Holding % Holding Name Holding % Holding Options Artemis 15,821,393 20.14% Michael Karg ; ; 7,400,000 JO Hambro 8,900,000 11.33% 9 Fr Rowe [Bii@e 8,857,551 127% Andrew Noble 40,295 0.05% 450,000 Kabouter 8,093,228 10.30% Morag Blazey 7
Slide 42: Recent performance
FINANCIAL APPENDICES Recent performance Year end April 12 April 13 April 14 April 15 Dec 15' Dec 16 Dec 17 Revenue 52,919 64,046 68,452 73,874 76,584 83,569 87,374 growth 20% 21% 7% 8% 4% 9% 5% Op profit 8,205 10,441 11,339 11,729 12,411 12,959 12,026 margin 15.5% 16.3% 16.6% 15.9% 16.2% 15.6% 13.8%