Mirriad Advertising Plc · LSE:MIRI
Mirriad Advertising — FY2019 Earnings Presentation
24 slides from Mirriad Advertising's earnings presentation, May 2020
Slide 1: Mirriad May 2020
—__|Mirriad MAY 2020
Slide 2: Introductions
INTRODUCTIONS John Pearson, Non-Executive Chairman Stephan Beringer, Chief Executive Officer David Dorans, Chief Financial Officer 2
Slide 3: Agenda
AGENDA Preliminary results Mirriad leap forward Outlook 2020 Q&A 3
Slide 4: 2019 highlights: reset approved, strong progress Q2-Q4
2019 • Reset approved in March, changes executed in April • Strong progress Q2-Q4 with important milestones • Growing viewer fatigue and advertiser sophistication • Encouraging results, strong base for 2020 4
Slide 5: Preliminary Results
PRELIMINARY RESULTS {JMirriad
Slide 6: Financial Summary
FINANCIAL SUMMARY Revenue Cash consumption £11,013k -16% £1,140k +174% 2019 11,013 2019 1140 2018 13,106 2018 416 Net Assets £19,200k +23% Operating loss £12,174k -16% 2019 19,200 2018 15,576 2019 12,174 2018 14,429 Cash & cash equivalents £19,091k +26% 2019 19,091 Loss for the period £12,095k -16%
Slide 7: EBITDA Loss and Cash Bridge
EBITDA LOSS AND CASH BRIDGE EBITDA Bridge FY2020 360 (11,145) Net loss Amortisation & Income tax credit/ ‘Share based Adjusted EBITDA loss depreciation finance income compensation Cash Bridge FY 2019 £000 19,092 (389) (10,951) (62) Opening cash 1 Jan 2019 Net cash from operating Purchase of tangible
Slide 8: Income Statement and Balance Sheet
INCOME STATEMENT AND BALANCE SHEET Income Statement (£m) 2019 2018 13.2 14.9 1.1 0.4 0.2 0.1 0.0 0.2 Revenue Cost of Sales Other Operating Income Administrative expenses Operating Loss (12.2) (14.4) Balance Sheet (£m) 19.1 15.2 0.9 0.4 1.0 1.0 0.4 0.0 1.3 1.6 0.4 0.0 0.0 0.2 0.2 0.2 0.1 0.3 Cash and
Slide 9: Staff Costs Managed: Focus on Tech and Sales
STAFF COSTS MANAGED: FOCUS ON TECH AND SALES Total salary costs by year 6,900 6,800 6,700 6,600 6,500 6,400 6,300 6,200 6,100 6,000 5,900 5,800 2018 2019 2020 Q1F 2018 (TOTAL STAFF 116) 2019 2020 (TOTAL STAFF 97) Technology & Technology & Technology & Product Product Product 44% 39% 45% Marketing &
Slide 10: Mirriad's Leap Forward
MIRRIAD’S LEAP FORWARD 10
Slide 11: Mirriad Intersects with Growing Needs of the Media Marketplace
MIRRIAD INTERSECTS WITH GROWING NEEDS OF THE MEDIA MARKETPLACE • A large addressable market: £95Bn TV and video advertising spend in US, CN, UK, France, Germany* • Marketers need new solutions: Increasing ad avoidance and fatigue, escape into streaming, advertising getting more out of touch and reac
Slide 12: Mirriad: A Game Changer for All Stakeholders
MIRRIAD: A GAME CHANGER FOR ALL STAKEHOLDERS MIRRIAD DIGITALLY BLENDS MIRRIAD POWERS A NEW VALUE EQUATION IN ADVERTISING: ADVERTISERS’ BRANDS AND BETTER EXPERIENCES, MORE REACH AND IMPACT, NEW REVENUE PRODUCTS WITH HIGH QUALITY CONTENT AT SCALE • Viewers: A high-quality experience, not disruptive •
Slide 13: From Mirriad 1.0 to 2.0
FROM MIRRIAD 1.0 TO 2.0 PRE APRIL 2019 POST APRIL 2019 • Flawed approach to market: Low • GTM: New focus on BD, sales and PR, scaling engagement with advertisers and their across content industry, advertisers and agencies, narrow funnel, lack of alignment agencies with industry standards • Market fo
Slide 14: Massively Scaling Engagement with Advertisers, Agencies and Content Industry
MASSIVELY SCALING ENGAGEMENT WITH ADVERTISERS, AGENCIES AND THE CONTENT INDUSTRY Top 5 global agencies Top 100 global advertisers Leading entertainment companies 100% 80% 55% 14
Slide 15: Sustained by Growing Reputation
SUSTAINED BY GROWING REPUTATION 15
Slide 16: COVID-19
COVID-19 • China: growing domestic demand, opportunities for local and global brands, first luxury brand campaign with Saint Laurent • Europe: slowdown with expected return in June/July, new potential opportunities emerging e.g. in sports and music video • US: P&G campaign in April, strong pipeline
Slide 17: Mirriad's Game Changing IP
MIRRIAD’S GAME CHANGING IP Placement opportunity detection Emotional analysis Attention prediction 19 patents globally covering key components required for high experience and advertising Dynamic versioning impact at scale, including continuity, dynamic segment insertion* and content valuation* *Awa
Slide 18: Delivering Proof of Outstanding Impact
DELIVERING PROOF OF OUTSTANDING IMPACT F&B brand Double digit increases in ad New research revealing double digit increases in consumption awareness and consideration frequency and spend 18
Slide 19: Delivering Proof of Outstanding Impact (cont.)
DELIVERING PROOF OF OUTSTANDING IMPACT (CONT.) “Significant lower funnel movement is especially impressive given the already high baselines, highlighting the success of the Mirriad integrations” (Kantar 2020) “Recommendation: Continue to couple Mirriad integrations with standard spots to help increa
Slide 20: The Decisive Factor: A Better Experience
THE DECISIVE FACTOR: A BETTER EXPERIENCE Strong viewers’ response 90% like the format 91% it’s a natural fit to content X6 preference over TV Spots* Source: Kantar / Toluna / campaign averages/ *=Pepsi 20
Slide 21: Mirriad: A Great Team and Culture
MIRRIAD: A GREAT TEAM AND CULTURE 98% proud to work at Mirriad 98% openness to new ideas 93% commitment to quality 88% performance culture 88% clear link to vision and mission December 2019 engagement survey, agree/strong agree 21
Slide 22: 2020: Overview
2020: OVERVIEW • Company performing well in remote mode • Guaranteed revenue base and good capital reserves • High engagement with tier one entertainment companies and key international advertisers • Expected positive developments from a shift in media consumption and changing advertiser strategies
Slide 23: 2020: China
2020: CHINA • Business picking up again with growing interest from multinational brands • Increased bookings, pitches and campaign planning • Tencent investing in more premium content • Tencent introducing new dynamic buying solution in Q3 23
Slide 24: May 2020
MAY 2020 investorrelations@mirriad.com 24