Next 15 Group Plc · LSE:NFG
Next 15 — Investor Day (September 2020)
52 slides from Next 15's investor day presentation, Sep 8, 2020
Slide 1: CMD: Sept 8th 2020
NEXT15 CMD: SEPT 8th 2020
Slide 2: Agenda
Next 15 Our long-term beliefs The impact of Covid-19 on marketing and Next 15 The areas of focus for Next 15 post Covid Activate sales = marketing = sales AGENDA: Agent3 evidence based marketing Mach49 building growth engines for global enterprises Wrap up Questions
Slide 3: Our Business
An ecosystem of high-quality specialist businesses Industry sector and audience expertise across four segments OUR Robust methodologies to drive execution quality BUSINESS: Engaged in our client’s business growth activities to drive long term engagement Values-based
Slide 4: Purpose
We exist to help our customers and PURPOSE: people become the best possible version of themselves
Slide 5: Our Beliefs
Growth is ultimate metric of success Marketing and sales are converging Business model design will become an ongoing activity World is flat – what next? Values-based organizations will thrive Marketing is a data and technology driven activity Tech: Customer experience is user experience OUR Every co
Slide 6: Our Covid Predictions
Sector related cuts Travel Retail Auto Event related cuts Sports OUR COVID Entertainment PREDICTIONS: Conferences Shift to digital only Personal/at home only Cash would be king
Slide 7: Covid Reality
Everything AND: Faster reprioritization of spend/programs towards sales enabled marketing Internal comms focus Re-evaluation of value of technology to businesses Cash crunch didn’t happen COVID Govt programmes softened the economic impact REALITY: K shaped recovery US tech IPO sector woke up driving
Slide 8: What Clients Want
B2B TOP 5 Virtual events Demand/Lead gen Thought leadership Content marketing WHAT ABM CLIENTS B2C TOP 5 WANT: Social media Customer data/CRM Marketing automation Web/Mobile optimization Content marketing
Slide 9: What Clients Are Saying
Pre Covid they were trying to spend 23% of time on sales related activities and 77% on brand building WHAT Post Covid 63% of resources focused on sales and just 37% on brand building CLIENTS Technology will liberate/enable creativity ARE Go to market strategies are being transformed by Covid SAYING:
Slide 10: Lessons Learned
Our strategy is spot on, simply need to accelerate it but be mindful of execution LESSONS Need to embrace the amount of business change our customers are going through LEARNED: Be brave while others are scared
Slide 11: Deliver better-converting demand gen to B2B tech marketers
deliver better-converting demand gen to B2B tech marketers
Slide 12: What Does Activate Do?
Activate helps B2B marketers drive WHAT sales pipeline using combination of data and technology DOES ACTIVATE We do that by engaging and delivering qualified contacts for sales follow up – DO? aka demand generation. Activate has deep, long-standing customer relationships with such tech stalwarts as I
Slide 13: B2B Tech Marketing & Demand Gen Landscape
US B2B Digital Ad Spending: $8b in 2020 Expected growth of 22.6% in 2020 Digital B2B tech is 30% of overall market, growing at B2B TECH 37% in 2020 MARKETING * eMarketer US B2B DIGITAL ADVERTISING 2020 Report & DEMAND GEN LANDSCAPE DATABASE MARKETERS DEMAND GEN PUBLISHERS SEARCH/SOCIAL DISPLAY AD NE
Slide 14: Increasing Demand for Demand Gen
The Rise in Digital for B2B: 70% of B2B buyer journey completed online before speaking to a salesperson INCREASING Demand Gen Winning Budget: DEMAND FOR Attribution of marketing efforts driving spend to DEMAND GEN de-risked channels Cloud SaaS expanding B2B buyers beyond IT Data is ubiquitous, engag
Slide 15: The Impact of Covid
What our customers are saying? 55% have increased demand gen Reallocating event budget Pressure to keep pipeline flowing Measure and be measured THE IMPACT Marketers are focused on shifting budget to OF COVID attributable channels B2B Marketers are increasingly measured on revenue metrics Demand incr
Slide 16: Post Covid: Winds at our back over the long-term
Winds at our back over the long-term Digital strength continues: eMarketer: When B2B marketers could no longer connect with buyers in person, digital ads had to work overtime and have been a primary touchpoint to get in front of targeted audiences. We estimate that US B2Bs will spend $8.14 billion o
Slide 17: Leading Global Account Based Marketing
Leading Global Account Based Marketing
Slide 18: What problem do we solve for our customers?
What problem do we solve for our customers? They are challenged to do this The problem by factors that include: Every leading B2B ● A lack of sales and marketing alignment TMT solution provider derives 80% of its ● An ever more fragmented buying centre revenue from 20% of within key accounts its cus
Slide 19: What problem do we solve for our customers? The answer
What problem do we solve for our customers? The answer We help our clients sell more to key and named accounts by delivering Account Based Marketing (ABM) programs that combine data, technology and content to drive better outcomes than they have seen previously.
Slide 20: What is ABM?
What is ABM? Traditional Marketing Account Based Marketing Attract Identify Nurture Engage Close Land & expand
Slide 21: There is a surging market demand
There is a surging market demand
Slide 22: Our point of differentiation
Our point of differentiation Traditional Agent3 Technology services based solutions that vendors agencies drive outcomes
Slide 23: Growth drivers
Growth drivers Services and product Geographic - Sector particularly expansion US
Slide 24: Global coverage
Global coverage CHELTENHAM WOODBRIDGE We are a global team and UK UK work with many customers on a domestic, regional and international basis. Client service teams sit in London, New York, San Francisco and Sydney, while SOFIA innovation and data teams sit LONDON Bulgaria UK in London and Sofia. NEW
Slide 25: A repeatable and scalable ABM engagement workflow
A repeatable and scalable ABM engagement workflow Account Targeting & Profiling Creative Execution We help B2B enterprise organizations run ‘true’ end-to-end ABM programs, at scale Channel Measure, Strategy Planning Optimize, Automate
Slide 26: A growth trajectory
A growth trajectory FY25 Goal to hit FY21 $50m FY20 $15m (est) FY19 $8.62m (60%) FY18 $5.38m (39%) $3.88m
Slide 27: Next15 + Mach49 for global businesses
™ "4 [ NEXTI5 + MACH49 FOR GLOBAL BUSINESSES iv] Disrupting InsideOut” Disrupting Outsideln™ Creating, building and launching Designing and managing world-class new ventures generated from corporate venture groups. within their organizations.
Slide 28: Linda Yates
Linda Yates Chief Executive Officer MACH easter DEVELOPING MORE DISRUPTORS* /in/linda-yates-19550249 Linda Yates is the founder and CEO of Mach49, the leading growth incubator for global businesses. She is a seasoned CEO with over 25 years of experience creating global strategy and driving innovatio
Slide 29: Paul Holland
Paul Holland Managing Director, Corporate Investing Practice, VC-in-Residence MACH aie DEVELOPING MORE DISRUPTORS* /in/paul-holland-15359469/ A successful veteran of Silicon Valley, Paul Holland is Managing Director and VC-in-Residence at Mach49, where he leads the company’s Corporate Venture Invest
Slide 30: Companies are going out of business faster than ever before
COMPANIES ARE GOING OUT OF BUSINESS FASTER THAN EVER BEFORE. 75 years Life expectancy of a Fortune 500 company. 88% irrelevant 12% still kicking 15 years 50 YEARS AGO TODAY
Slide 31: 40% of the businesses in this room will not exist
“40% of the businesses in this room, unfortunately, will not exist in a meaningful way in 10 years ... ... and 70% of you will attempt to go digital but only 30% of you will succeed.” John Chambers Former CEO, Cisco “IF I'M NOT MAKING YOU SWEAT, | SHOULD BE.”
Slide 32: It's time to build
IT’S TIME TO BUILD. “Every Western institution was unprepared for the coronavirus pandemic, despite many prior warnings. Part of the problem was clearly foresight, failure of imagination. Pin other part of the problem is what dn’t do in advance, and what we're failing to do now. And that is a failur
Slide 33: The G1000 is leaving a lot of money on the table
THE G1000 IS LEAVING A LOT OF MONEY ON THE TABLE. 490 unicorns with a total valuation of $1.6 Trillion
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Slide 35: Slide 35
Slide 36: How we solve the growth problem
HOW WE SOLVE THE GROWTH PROBLEM. We focus on four activities to help global businesses to beat the startups at their own game. f_) , Y Ww WW h | Launch Ventures Leverage your internal talent, customers, and assets to build disruptive new ventures in 12 weeks. Build Incubators Create and operate an i
Slide 37: Disrupting Inside Out
DISRUPTING INSIDE OUT.
Slide 38: The goal is to build a pipeline and portfolio of ventures
THE GOAL IS TO BUILD A PIPELINE AND PORTFOLIO OF VENTURES TO GENERATE MEANINGFUL GROWTH. e e ©. e e e ~ e e e IDEATE INCUBATE ACCE ee. @ Ve e ee ° e
Slide 39: Ideate
IDEATE. Mining breakthrough ideas from inside and outside the organization. PORTFOLIO CHALLENGE W VENTURE REVIEW FRAMING PETITION For many companies, ideation isn’t Asimple way to launch the incubate Challenge your next generation of their problem — assessing and phase of a new venture is to bring a
Slide 40: Incubate: Only weeks to launch a new venture
INCUBATE. Only 12 Weeks to Launch a New Venture. TEAMS OUTCOMES Client AFundable Business CEO) Team Lead Month 3 i aoe roduc GT™M indi tall igni A New Venture Board SME Ai We SU Designing Trained to Help Seize the Cus er Product the Mothership Advantage Mach4o Pain rice Business A Startup Team EIR P
Slide 41: Accelerate: Pilots. Product-Market Fit. Revenue. Scale.
ACCELERATE. Pilots. Product-Market Fit. Revenue. Scale. OUTCOMES First Revenue Through Paying —= Pilot Customers. j -Build-to Product-Market Fit 7 L earn A l itomate [ S C ale Team and Infrastructure Ready ee . ae 2. to Scale Businesses Ready for Series A ae Funding Oe arket Fit. ble. Revenue Model.
Slide 42: Thriving during Covid
M23) AQ Thriving during COVID roviding fie they deserve to be awesome at their jobs. Big ExitduringCOVID A... PATPET better pet The First Virtual Energy Expert. pier, and heal
Slide 43: Disrupting Outside In
DISRUPTING OUTSIDE IN.
Slide 44: Why do corporate venturing?
- ea . . _ Optimize your current business by leveraging WHY DO CORPORATE VENTURING? 4 —— Ee —O : ry Ls * the speed, agility, and innovation of startups. % Drive your company into adjacent and new markets using a portfolio approach by placing a series of small bets. <> Create a channel to stay curren
Slide 45: Options for corporate venturing
OPTIONS FOR CORPORATE VENTURING. Design, launch, and manage world-class CVC Funds leveraging the experience, deal flow, global network, and success of our top-tier Silicon Valley VCs. ©) Support Executive Investment Committees without a CVC, who are investing off the balance sheet — bringing the dis
Slide 46: Exploring new frontiers from a strong base
EXPLORING NEW FRONTIERS FROM A STRONG BASE. Entertainment €228B WW. % coud Pernod Ricard a Convivialité ms Ventures €8.7B Transport Food and Beverage From Wine and Spirits To Conviviality
Slide 47: Accelerate the disruption
ACCELERATE THE DISRUPTION. ELECTRIC — a FROM TO
Slide 48: What's next?
WHAT’S NEXT?
Slide 49: Why Next 15?
Nach49 has had veral acquisition ffers and expressions interest since our ding. WHY NEXT 15? A global company with amazing leadership and well-staffed offices in all major markets. The long-term opportunity to help move the needle for the parent organization. “Mach49 will become the cornerstone of N
Slide 50: How Companies Can Launch New Ventures at Startup Speed
h New Ventures ies Can Launc! rowth. How Compani at Startup Speed to Drive G
Slide 51: Next15 + Mach49: Building growth engines for the Global 1000
NEXTI5 + MACH49 BUILDING GROWTH ENGINES FOR THE GLOBAL 1000.
Slide 52: To close
The big traditional ad agency groups are walking a tightrope Specialism beats scale every time TO CLOSE: Quality beats price but value beats everything (data, data, data) Marketing is dead, revenue growth is everything