System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — FY2015 Earnings Presentation
18 slides from System1's earnings presentation, 2015
Slide 1: Results Presentation | Year ended 31 December 2015
Feel more: Buy more. Results Presentation | Year ended 31 December 2015 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency
Slide 2: Leading exponent of behavioural economics and System-1 thinking
Leading Our five golden rules of exponent famous 5-Star communication of behavioural 1. We think much less than we think we think economics and (fast feelings drive decisions, slow thinking rationalises the reasons) system-1 thinking 2. Those who tell the best stories rule the world (the human mind
Slide 3: Building our core, expanding our repertoire and extending our availability
Building our core, Strong underlying momentum System1 agency expanding our 17% growth in core products Setting up our new creative agency repertoire and (Ad Testing, Brand Tracking, Predictive based on system-1 Markets) extending our availability Fame | Feeling | Fluency Significantly enhanced our A
Slide 4: Financial Results
Financial Results BrainJuicer Group PLC 4
Slide 5: Top-line flat but strong profits and cash flow
Gross profit (£m) main top-line performance indicator 25 Revenue up 2% 20 H2 Top-line flat but 15 H1 Gross profit up 4% strong profits and 10 Overhead costs up 4% cash flow 5 Operating profit up 6% 0 2008 2009 2010 2011 2012 2013 2014 2015 Profit before tax up 5% Profit after tax up 5% Operating pro
Slide 6: Lack of overall growth masks strong growth in core products
Juicy Quantitative Products – gross profit £m 20 Ad Testing & Brand Tracking 15 Predictive Markets Lack of overall Other growth masks 10 Juicy Quant Products growing and scalable particularly three core products … strong growth in 5 Ad Testing & Brand Tracking – building brands Predictive Markets –
Slide 7: Mixed fortunes geographically
Mixed fortunes geographically Reflecting client ups and downs more than systemic issues Gross profit split Gross profit Operating profit UK £6.73m - 1% £4.53m - 6% Brazil US £7.76m + 21% £4.42m + 19% Asia Continental Europe £3.13m - 9% £1.62m - 3% UK Continental Asia £1.49m - 12% £0.56m - 30% Europe
Slide 8: Cost increase mitigated by bonus reduction
2015 2014 Growth Gross profit £20.25m £19.41m 4% Cost before bonus up 11% Cost increase Cost pre bonus £(15.64)m £(14.03)m 11% Higher than gross profit growth due to one-off mitigated by costs (£0.32m) and Juice Gen savings not Bonus £(0.06)m £(1.08)m NM flowing through until 2016 bonus reduction Op
Slide 9: Strong cash flow and returning it to shareholders
Strong cash flow Cash Flow Returns to shareholders and returning it to shareholders Pre-financing cash flow has been at Over the last 5 years, returned £5.17m least 78% of profit after tax every year in dividends and £3.56m in share buy- over the last 5 years backs And was 89% of profit after tax in
Slide 10: Fame | Feeling | Fluency
Fame | Feeling | Fluency BrainJuicer Group PLC 10
Slide 11: Fame Feeling Fluency
Fame Feeling Fluency If a brand comes readily to mind, If people feel good about a brand, If people recognise a brand people perceive it to be a good they perceive it to be a good quickly, they perceive it to be a choice choice good choice Explains current market share Predicts future market share R
Slide 12: System1 creative agency
System1 creative agency Feel more: Buy more BrainJuicer Group PLC 12
Slide 13: We only develop System1 work
1 2 3 We only develop We source the best creative We guarantee everything we System1 work talent available anywhere deliver will work The most effective ideas don’t Rather than fixed creative teams, we Using BrainJuicer’s behavioural- persuade, they seduce manage a Network of Creative based testing
Slide 14: System 1 vs System 2
System 1 vs System 2 BrainJuicer Group PLC 14
Slide 15: System 1 vs System 2
System 1 vs System 2 BrainJuicer Group PLC 15
Slide 16: Summary
Summary BrainJuicer Group PLC 16
Slide 17: Continuing the momentum, expanding our repertoire, extending our availability
Continuing the Expanding our Extending our momentum repertoire availability Core innovation screening and brand Utilising behavioural science insights Adding our products to an online building services growing and Fame | Feeling | Fluency to portal. Inexpensive, fast and highly consistently and stro
Slide 18: Results Presentation | Year ended 31 December 2015
Feel more: Buy more. Results Presentation | Year ended 31 December 2015 BrainJuicer Group PLC Feel more: Buy more system1agency.com @system1agency