Yougov Plc · LSE:YOU
Yougov — FY2020 Earnings Presentation
30 slides from Yougov's earnings presentation, Oct 6, 2020
Slide 1: Building the YouGov Platform
Building the YouGov Platform
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect YouGov’s current views with respect to future events and financial and operational performance. These forward-looking statements are based on YouGov’s beliefs, assumptions and expectations regarding future events and trend
Slide 3: Key Highlights
Key Highlights Stephan Shakespeare, CEO
Slide 4: Continued strong, profitable growth and rising shareholder returns
Continued strong, profitable growth and rising shareholder returns Financial Summary • Revenue growth of 12% (2019: 17%), well ahead of the 3.9% market growth as estimated by ESOMAR for 20191 • Underlying business2 growth of 13% • Adjusted operating profit3 up by 18% to £21.8m (2019: £18.5m) • 14% u
Slide 5: Margin expansion seen in the investment phase of our long-term strategic growth plan
Margin expansion seen in the investment phase of our current long-term strategic growth plan £m 25 16.0% 14.3% 13.5% 14.0% 20 21.8 10.9% 12.0% 18.5 15 10.0% 7.5% 8.0% 6.2% 12.7 10 5.1% 6.0% 8.0 4.0% 5 5.4 3.9 2.0% 0 0.0% 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Adjusted Operating Profit Adjus
Slide 6: Operational Highlights
Continued strong, profitable growth and rising shareholder returns Operational Highlights Continued growth most seen in Increased investment in the business to building Ensured full continuity of service the largest key markets, the US a platform for future growth during COVID-19 lockdowns in H2 and
Slide 7: Financial Updates
Financial Updates Alex McIntosh, CFO
Slide 8: Revenue Performance by Division
Revenue Performance by Division Group Revenue (£m) • Data Products remains the key driver of growth as clients +12% continue to value our YouGov Plan & Track proposition 152.4 136.5 • Custom Research saw strong underlying growth trends during the year, as the repositioning of the business to more Yo
Slide 9: Revenue Performance by Geography
Revenue Performance by Geography • Largest key markets, the US and UK, continue to be the Underlying drivers of Group performance Year ended Year ended business1 31 July 2019 Change • Continue to focus and invest in those key regions as 31 July 2020 £m % revenue ample room for growth remains £m chan
Slide 10: Adjusted Operating Profit Performance by Division and Geography
Adjusted Operating Profit1 Performance by Division and Geography Year to Operating Operating Margin Year to 12 months to 31 July 2020 31 July 2019 Profit Year to Year to 31 July 2020 £m (restated)2 growth 31 July 31 July Adjusted Operating Profit1 £m % 2020 2019 1% Data Products 18.0 14.2 26% 35.0%
Slide 11: Balance Sheet
Balance Sheet 31 July 2020 31 July 20191 £m £m Assets Goodwill 61.5 65.6 • Debtor days increased from 47 days to 48 days Other intangible assets 23.2 16.7 Other non-current assets 23.4 26.2 Total 108.1 108.5 • Creditor days decreased to 19 days from 24 days Current Assets Trade and other receivables
Slide 12: Cash Flow
Cash Flow • Steady generation of cash from operations at £38.7m; 104% of Cash generation and conversion adjusted EBITDA • Cash conversion down due to normalised working capital 50 121% 104% requirements; prior year benefitted from £6m inflow from 40 100% working capital 30 38.4 38.7 • Business remai
Slide 13: Operational Updates
Operational Updates Sundip Chahal, COO
Slide 14: YouGov Data Products
YouGovDataProducts YouGov’s Data Products division is comprised of our syndicated Growth in data products, which are available to clients on a subscription basis. period: It includes YouGov BrandIndex and YouGov Profiles sold under the 24% combined YouGov Plan & Track proposition 60 50% 45% 50 40% •
Slide 15: YouGov Data Services
YouGovDataServices Our Data Services division consists of our fast-turnaround research Growth in services, including our market-leading YouGov Omnibus period: 2% 40 50% • Focus on the US market and further territorial expansion has 45% 35 37.2 37.8 helped the division expand the revenue base beyond
Slide 16: YouGov Custom Research
YouGovCustomResearch YouGov’s Custom Research division offers a wide range of Growth in quantitative and qualitative research, including substantial global period: trackers, that is tailored by sector specialist teams to meet clients' 8% specific requirements 70 50% 45% 60 64.6 60.2 58.7 60.0 40% •
Slide 17: Investment in technology, products and platform
Investment in technology, products and platform • Further developed our proprietary technology, including our analytics software YouGov Crunch • Developed new brand and NPS® trackers, such as YouGov Recommend+, using connected research data systems • Launched new YouGov widgets such as our free YouG
Slide 18: Investment in panel
Investment in panel • Continued to invest in our consumer panel to increase our research capabilities, both in new geographies and specialist panels • Expanded our geographic UK: 1.83m capability by establishing new Americas: 4.21m panels in Austria, Brazil, Europe: 1.92m Switzerland and Turkey • We
Slide 19: Investment in global infrastructure
Investment in global infrastructure • Enhancing our scalability and streamlining operational activities by investing in Centres of Excellence (CenX) Data Processing hubs • Enhances appeal of our self-service offering and supports our syndicated data customers • Cultivates a global presence as client
Slide 20: Focus on sales organisation and key global accounts
Focus on sales organisation and key global accounts • Kicked off global key account management programme with the appointment of key account managers • 25 key client accounts identified in the US and 40 in the UK 25-40 key client • Focus on cultivating our most significant client accounts for accoun
Slide 21: Strategic Updates
Strategic Updates Stephan Shakespeare, CEO
Slide 22: Platform for ethical sharing of opinion and personal data: three strategic pillars
We are creating a platform for the ethical sharing of opinion and personal data based on three strategic pillars Data Integration Public Data Ethical Activation Fully integrating custom research Making the data we collect from the Enabling citizen-controlled marketing and client service with our dat
Slide 23: Fastest, self-service, high-quality, low cost research platform
Ethical Activation A unique platform that offers rapid, self-serve research, and the ability Fastest, self-service, high-quality, low cost research platform to market products and services & directly to consumers. A new way to deliver highly effective marketing directly to consumers Research Low cos
Slide 24: YouGov Direct: opted-in and transparent research and marketing platform
YouGov Direct is a fully opted-in and transparent research and marketing platform. With accurate profiling data and granular consent from our members, we enable precise audience targeting and go beyond traditional market research Members download app or register via web They provide their profiles a
Slide 25: Environmental, social and governance strengths
Environmental, social and governance strengths Our social mission is core to our product: giving a voice to every part of the community Environmental Social Governance Committed to monitoring and reducing Committed to making people’s opinions heard Committed to maintaining a solid governance our emi
Slide 26: Outlook
Outlook Stephan Shakespeare, CEO
Slide 27: YouGov has seen a remarkable growth trajectory in its 20-year history
YouGov has seen a remarkable growth trajectory in its 20-year history 160,000 25,000 140,000 20,000 120,000 Adjusted Operating Profit1 £000s 100,000 15,000 Revenue £000s 80,000 10,000 60,000 40,000 5,000 20,000 0 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Slide 28: Long-term growth targets
Long-term growth targets We believe our progress this year, our operational resilience, and our flow of innovations, keeps us on-plan for meeting the ambitious targets of our 2019-23 growth plan: 1 2 3 Achieve an Adjusted1 Double Double Group Adjusted1 Earnings Per Share Group Revenue Operating Prof
Slide 29: Current Trading and Outlook
Current Trading and Outlook • Trading in the current year has started in line with the Board’s expectations • Strong balance sheet and continuing to see growing demand for our products • Group continues to be resilient, delivering growth in both revenue and profit • Remain confident of meeting our l
Slide 30: Thank you
Thank you YouGov