Slide 1: Financial Year 2020 Results
FINANCIAL YEAR 2020 RESULTS. FINANCIAL YEAR 2019 FULL YEAR RESULTS.
Slide 2: FY20 – Results Highlights
FY20 – RESULTS HIGHLIGHTS. • During FY20, the Company continued its focus on a number of key strategic priorities: • Securing and activating large agency groups in the US and other markets to enable strong growth in Adslot Media trading fees going forward; • Diversifying the geographical and custome
Slide 3: FY20 – Results Highlights Continued
FY20 – RESULTS HIGHLIGHTS CONTINUED. • During FY20, the Company also saw increased cash receipts (growing 11% from $17.4M to $19.29M). Net operating cash outflows increased to $3.38M and the Company had a closing cash balance of $6.16M at year end. • The Company also successfully completed a capital
Slide 4: Despite a Challenging Second Half, FY20 Saw Consistent Revenue Across the Business
DESPITE A CHALLENGING SECOND HALF, FY20 SAW CONSISTENT REVENUE ACROSS THE BUSINESS. Group Revenue from Trading Licence Fee Trading Fee Revenue Continuing Technology Revenue Revenue Operations Revenue $10.573M $9.836M $8.115M $7.207M $0.908M + 3% - 1% + 1% +8% - 34% vs PCP Thousands
Slide 5: Reduced Operating Costs, and Improved Adjusted EBITDA and Adjusted NPAT
REDUCED OPERATING COSTS, AND IMPROVED ADJUSTED EBITDA AND ADJUSTED NPAT. Operating Adjusted Adjusted Costs EBITDA Loss NPAT Loss $11.722M ($1.197M) ($5.090M) -9% -54% - 28% vs PCP Note: Adjusted EBITDA loss and Adjusted NPAT loss is after adding back impairment of Goodwill of $10.0M and once off pro
Slide 6: Revenue Segments
Strategic Revenue REVENUE SEGMENTS. Licence Trading Three main revenue sources: Fee Fee Revenue Revenue • Licence Fees generated primarily from Symphony but also from Adslot Media; • Trading Fees generated primarily from Adslot Media but also from Symphony; and, Trading • Services provided to Sympho
Slide 7: Licence Fee Revenue Growth
LICENCE FEE REVENUE GROWTH. +8% vs PCP CAGR 18% Licence Fees $7.207M • Licence Fees grew 8% on prior corresponding period (PCP) 7
Slide 8: Trading Fee Revenue Fell but Expected to Improve Strongly in FY21
TRADING FEE REVENUE FELL BUT EXPECTED TO IMPROVE STRONGLY IN FY21. -34% vs PCP Trading Fees $0.908M • Note: Trading Fee revenues are invoiced and recognised in the Company accounts in the month(s) in which the advertising activity is published, and on a pro-rata basis where activity falls over multi
Slide 9: Trading Technology Revenue Overall Was Maintained
TRADING TECHNOLOGY REVENUE OVERALL WAS MAINTAINED. +1% vs PCP CAGR 14% Trading Technology $8.115M • Trading Technology revenue (Licence Fees and Trading Fees combined) grew by 1% on prior corresponding period (PCP). • The increase in Trading Technology revenue was driven by a growth of $0.539M (8%)
Slide 10: Services Revenues Declined Slightly
SERVICES REVENUES DECLINED SLIGHTLY. -7% vs PCP Services $1.673M • The majority of services revenue comes from the Company’s Webfirm services division ($1.613M). • Non-Strategic Services revenue of $1.673M represents a -7% decrease on PCP. 10
Slide 11: Operating Costs Reduced for Second Year
OPERATING COSTS REDUCED FOR SECOND YEAR. -9% vs PCP Operating Costs $11.722M • Total Operating costs of $11.722M were 9% lower on prior corresponding period (PCP). • Operating Costs are Total Expenses excluding Depreciation and Amortisation, interest expenses, once off R&D Provision, goodwill impair
Slide 12: Operating Costs
OPERATING COSTS. • Total Operating costs of $11.722m for the year were 9% lower on PCP. • Operating Costs are Total Expenses excluding depreciation and amortisation, interest expenses, once off R&D provision, intangible impairment and Taxes. • The operating cost reduction was primarily driven by sal
Slide 13: Significantly Improved Adjusted EBITDA
SIGNIFICANTLY IMPROVED ADJUSTED EBITDA. -54% vs PCP Adjusted EBITDA Loss ($1.197M) • Substantial improvement in Adjusted EBITDA for second consecutive year. Note: Adjusted EBITDA is after adding back impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M to the Unadjus
Slide 14: Improved Adjusted NPAT
IMPROVED ADJUSTED NPAT. -28% vs PCP Adjusted NPAT Loss ($5.090M) • Adjusted NPAT Loss also decreased by 28% on PCP to $5.090M Note: Adjusted NPAT loss is after adding back impairment of Goodwill of $10.0M and once off provision for FY16 R&D Claim of $1.528M to the Unadjusted EBITDA loss ($12.725M) a
Slide 15: Cash Receipts, Operating Cash Flows and Year End Position
CASH RECEIPTS, OPERATING CASH FLOWS AND YEAR END POSITION. Net Cash Receipts Operating Cash Cashflows $ 19.294M $6.160M ($3.382M) +11% +205% -25% vs PCP
Slide 16: Strategy Update
STRATEGY UPDATE.
Slide 17: Market Conditions
MARKET CONDITIONS. Despite considerable uncertainty caused by the COVID-19 pandemic the Company remains positive on the prospects for the Adslot Media product in the coming year. • Client engagement and sales pipeline have remained high over the past 6 months. • Trading activity improved significant
Slide 18: FY21 Strategic Objectives
FY21 STRATEGIC OBJECTIVES. Key strategic objectives for FY21 are: • Drive activation and trading activity from previously signed global agency holding companies. • Execute Master Service Agreements (MSAs) with the 3 remaining global agency holding companies. • Expand sources of supply on the Adslot
Slide 19: Agency Holding Companies
AGENCY HOLDING COMPANIES. The Company has made strong progress in progressing MSAs with the 6 global agency holding companies: • MSAs executed with Interpublic Group (IPG), Dentsu and Havas during the 2020 Financial Year; • Additional holding company has commenced trading whilst MSA in legal review;
Slide 20: The Agency Landscape
THE AGENCY LANDSCAPE. MSA Signed Holding Hold Co Company Media Division Media Agencies Trading Desks
Slide 21: Agency Holding Companies
AGENCY HOLDING COMPANIES. We have also now carefully mapped out the required steps post MSA to scale adoption and trading and we ARE activating this plan now: • Integration with internal agency systems and workflow. • Onboarding of required customer data sets for targeting • Identification and engag
Slide 22: Growing Supply in Our Marketplace
GROWING SUPPLY IN OUR MARKETPLACE. We have already built a highly credible base of supply in the Adslot Media marketplace: • Almost 50% of the Comscore Top 50 publishers are available on the Adslot Media marketplace in the US; and • Additional prominent publishers added to the marketplace throughout
Slide 23: Adslot's Community of Publishers
ADSLOT’S COMMUNITY OF PUBLISHERS. *partial list
Slide 24: Cost Management Focus
COST MANAGEMENT FOCUS. The Company has continued its commitment to cost management. • Operating costs reduced by 9% on PCP. This follows a previous reduction of 10% in FY2019 (vs PCP). • Operating expenses focused on key strategic areas that will drive revenue growth. • Reductions in costs and assoc
Slide 25: The Year Ahead
THE YEAR AHEAD. Adslot is well positioned for growth in FY2021. • Industry desire for greater efficiency in media trading has accelerated post COVID-19, and this is creating significant opportunity for platforms such as Adslot Media and Symphony. • Activation planning in the US is well advanced and
Slide 26: Disclaimer
DISCLAIMER. The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for sp
Slide 27: Thank You
THANK YOU. Please direct any questions to: investor.relations@adslot.com