Slide 1: Investor Presentation
Adslot. INVESTOR PRESENTATION 3 AUGUST 2018
Slide 2: Contents
CONTENTS. • Details of Capital Raising • Company Background & Capability Overview • Progress Update • FY18 Financial Update • The Problem Adslot Solves • The Adslot Solution • Adslot’s Strategic Market Position • Summary • Key Risks • Glossary • Important Notice & Disclaimer
Slide 3: Capital Raising
CAPITAL RAISING. Adslot
Slide 4: Offer Details
OFFER DETAILS. Offer Overview • Adslot announces a successful Placement of 140m shares to raise approximately $3.5m • The Placement of shares is being made to new and existing sophisticated and institutional investors • The Placement of 140m shares represents approximately 10.9% of Adslot’s existing
Slide 5: Source and Use of Funds
SOURCE AND USE OF FUNDS. Funds raised under the Placement will be used as follows Source of funds $m (assuming completion of the Placement Tranche 2): (approx.) Placement – Tranche 1 2.95 • To provide additional working capital in order to maintain Placement – Tranche 2 0.55 current velocity in Adsl
Slide 6: Indicative Timetable
INDICATIVE TIMETABLE. Event Date Trading halt Pre-open, Wednesday, 1 August 2018 Placement opens Wednesday, 1 August 2018 Placement closes Thursday, 2 August 2018 Trading halt lifted Before 9.30am (Melbourne time), Friday, 3 August 2018 Announcement of results of Placement Settlement of Placement –
Slide 7: Company Background & Capability Overview
COMPANY BACKGROUND & CAPABILITY OVERVIEW.
Slide 8: Company Background
COMPANY BACKGROUND. Leading global provider of workflow and trading automation technology for digital advertising Founded in 2010 & publicly traded (ASX: ADJ) Global: HQ in Australia with operations in the US, UK, Vietnam, Germany and China Customer base encompasses agency holding companies, indepen
Slide 9: Capability Overview
CAPABILITY OVERVIEW. • Symphony - workflow automation platform for media agencies • SaaS revenue model with high renewal rates • Global contract with GroupM, world’s largest media buying group: • Deployed in 13 countries, roll-outs for next 5 countries in progress • Deployment into additional 15 cou
Slide 10: Progress Update
PROGRESS UPDATE. Adslot
Slide 11: Licence Fees from Symphony Are Contributing Stronger Growth
LICENCE FEES FROM SYMPHONY ARE CONTRIBUTING STRONGER GROWTH. On 20th July 2018, Adslot announced GroupM (Adslot’s largest Symphony client and the world’s largest media buyer) has agreed to a series of updated terms to its global Symphony agreement: • Contracted Symphony Licence Fee revenue forecast
Slide 12: June Launch of Audience First Allows Access to New Trading Fee Revenue
THE JUNE LAUNCH OF AUDIENCE FIRST ALLOWS THE COMPANY TO ACCESS NEW TRADING FEE REVENUE. Product Milestones Supply Milestones SYM demand/user Milestones SYM new market activations Commercial Milestones
Slide 13: Audience First Is Showing Momentum
AUDIENCE FIRST IS SHOWING MOMENTUM. Number of Trades
Slide 14: Average $ Value of Audience First Trades in US Is Higher
THE AVERAGE $ VALUE OF AUDIENCE FIRST TRADES IN THE US MARKET IS HIGHER THAN THE HISTORICAL AVERAGE. Note: This chart shows the average AUD $ value of individual Audience First campaigns ($147k) since its launch in June 2018, compared to the Company’s historical average campaign trade values globall
Slide 15: Trade Volume in Current Quarter On Track to Exceed June Quarter
THE VOLUME OF TRADES IN THE CURRENT (SEPT) QTR IS ON TRACK TO GREATLY EXCEED THE JUNE QTR. Volume of Trades (Actual) Pro-rata forecast based on QTD Actuals
Slide 16: $ Value of Media Traded via Adslot Media Is Growing
THE $ VALUE OF MEDIA TRADED VIA ADSLOT MEDIA STAND-ALONE IS GROWING.
Slide 17: Current Quarter Indicating Strong Growth in Media Traded
…AND THE CURRENT QUARTER TO DATE IS INDICATING STRONG GROWTH IN $ VALUE OF MEDIA TRADED FROM ALL SOURCES.
Slide 18: FY18 Financial Results
FY18 FINANCIAL RESULTS.
Slide 19: FY18 Financial Results Update
FY18 FINANCIAL RESULTS UPDATE. FY18 primarily reflects a year of investment in both product R&D and sales and marketing. Despite an improvement in operating metrics, the improvement has not yet resulted in increased revenue. A strategic review was conducted in Feb 18 which resulted in a reduced cost
Slide 20: The Problem Adslot Solves
THE PROBLEM ADSLOT SOLVES.
Slide 21: $38B Forward Guaranteed Display Ad Market Traded Manually
The $38B* forward guaranteed display ad market has traditionally been traded manually via spreadsheets and purchase orders. Adslot provides media workflow automation (Symphony) and media trading automation (Adslot Media) to large buyers and sellers of forward guaranteed media. * Source: eMarketer Re
Slide 22: Why Symphony? Efficiency Improvement
WHY SYMPHONY? 1. Improves operational 2. Provides a consistent, centralised EFFICIENCY efficiency through systems data asset that enables data-driven integration. insights and decision-making across IMPROVEMENT... the group. 35% * * Note: Management estimate based on efficiency improvement measured
Slide 23: Why Adslot Media?
WHY ADSLOT MEDIA? ORD PARTY AUDIENCE TAR,
Slide 24: Online Display Ad Market Breaks Into Two Primary Segments
THE ONLINE DISPLAY AD MARKET BREAKS DOWN INTO TWO PRIMARY SEGMENTS… * • Automated (programmatic) • Traded via purpose built platforms • Is audience targeted – ‘addressable’ • Traded impression by impression in real time (‘real-time bidding’ or ‘RTB’) • Non Automated (manual) • Not traded via platfor
Slide 25: Why Hasn't the $38B Segment Transitioned to Programmatic?
Why hasn’t the $38B forward guaranteed segment transitioned to programmatic (RTB) automation..?
Slide 26: RTB Ecosystem Wasn't Built for Forward Guaranteed Deals
BECAUSE THE RTB ECOSYSTEM WASN’T BUILT TO SERVICE FORWARD GUARANTEED DEALS. Programmatic wasn’t built for the forward guaranteed market… • Largest Audience Highest priority – • Best Ad Formats sponsorship buys FORWARD GUARANTEED • Premium Position • No forward reservations • Large Audience • No guar
Slide 27: RTB Technology Is Complicated With Multiple Platforms
RTB TECHNOLOGY IS COMPLICATED, WITH MULTIPLE INTERDEPENDENT PLATFORMS SITTING BETWEEN BUYER AND SELLER… Note: Please see Glossary section at the end of this presentation for acronym definitions.
Slide 28: Making RTB Automation Hugely Inefficient
…MAKING RTB AUTOMATION HUGELY INEFFICIENT. Source: LabMatik Industry Report: ‘Unlocking Shareholder Value in Programmatic’ May 2018
Slide 29: The Adslot Solution
THE ADSLOT SOLUTION. Adslot
Slide 30: Benefits of Adslot Shared Across Stakeholders
THE BENEFITS OF ADSLOT ARE MANY, MATERIAL AND SHARED ACROSS STAKEHOLDERS. Automation – operational efficiency for buyer & seller, reduces complexity/human error, speed to market Economic efficiencies – significantly reduces labour cost (forward guaranteed) and removes adtech tax (programmatic) Trans
Slide 31: Adslot Media Bypasses RTB, Removing Cost, Risk and Complexity
ADSLOT MEDIA IS A SIMPLE, SCALABLE TECHNOLOGY SOLUTION THAT COMPLETELY BY-PASSES RTB, REMOVING COST, RISK AND COMPLEXITY…
Slide 32: Adslot Now Supports All Forms of Audience Targeting
AND ADSLOT NOW SUPPORTS ALL FORMS OF AUDIENCE TARGETING…
Slide 33: Direct Benefit to Advertisers and Publishers
…WHICH CAN DIRECTLY BENEFIT ADVERTISERS AND PUBLISHERS… Adslot shifts the structural economics from this… …to this…
Slide 34: Growing the Market Opportunity to c.$55B
Global Display Ad Spend (USD $B’s)* …which also grows the market Facebook & Google opportunity to Programmatic Forward Guaranteed include non FB/Google (non programmatic) spend…to c.$55B * Source: eMarketer, Net Display Ad Revenue Share Worldwide, by Company, 2016-2019 and Google and Facebook public
Slide 35: Adslot's Strategic Market Position
ADSLOT’S STRATEGIC MARKET POSITION.
Slide 36: Adslot Has Established a Strategic Position
ADSLOT HAS ESTABLISHED A STRATEGIC POSITION… 1. Market leading technology that has been validated by leading agencies and advertisers 2. Signed hundreds of premium publishers 3. Future leverage from over $3B (targeting $6B+ by 2020) of Symphony demand 4. Global sales and customer footprint in key ma
Slide 37: Market Leading Technology Validated by Agencies and Advertisers
1. Market leading technology that has been validated by large agencies and advertisers • Major agencies/advertisers across US/UK/Australia have traded via Adslot • Most first time users have conducted repeat trades via Adslot • The most requested feature and the gateway to significant adoption is th
Slide 38: Signed Hundreds of Premium Publishers
2. Signed hundreds of premium publishers…and a fast growing number to Audience First Note: publisher contracts are non-exclusive and do not have guaranteed volume, expenditure or revenue conditions. Publisher logos emphasized by red border have the capacity to target advertising based on advertiser
Slide 39: Future Leverage from $3B of Symphony Demand
3. Future leverage from $3B of Symphony demand (targeting $6B+ by 2020) • c. $3b of annual agency demand managed through Symphony • Hundreds of premium publishers signed to Adslot • Basic integration of Adslot publishers & products integrated into Symphony • Future migration of Symphony publisher UI
Slide 40: Global Sales and Customer Footprint in Key Markets
4. Global sales and customer footprint in key markets • HQ – Sydney/Melbourne: Product Development, Product Management, Finance, Technology, Sales, Customer Service (APAC & Global) • Ho Chi Minh: Product Development • Shanghai: Customer Service (APAC) • Munich: Sales, Customer Service (EMEA) • Londo
Slide 41: Technology Built on API Architecture
5. Adslot technology is built on API architecture to enable interoperability
Slide 42: Creating a Significant Market Opportunity
…CREATING A SIGNIFICANT MARKET OPPORTUNITY. • Online display advertising is a $110B global market growing at circa 20% CAGR* • The highest growth segment representing c.$70B* is programmatic (traded via purpose built platforms, ie. RTB) and allows audience targeting • The c.$40B* forward guaranteed
Slide 43: Adslot Is a Highly Scalable Business
ADSLOT IS A HIGHLY SCALABLE BUSINESS... • The market opportunity is large: $38B* • The value Adslot creates is distributed across the primary stakeholders: advertiser, buyer, seller • Transaction based model sees Adslot generate revenue of up to 15% of media traded • There is no fee to the advertise
Slide 44: Distinct Differentiation and Unique Benefits
…WITH DISTINCT DIFFERENTIATION AND UNIQUE BENEFITS COMPETITOR SET Adserver Integrated Buyer-Seller Direct No Demand Side Fee Tech Agnostic = yes = limited (eg. Google is integrated only with its own proprietary adserver, DFP) = no
Slide 45: Summary
SUMMARY.
Slide 46: Summary
SUMMARY • The opportunity to automate a $38B industry is large and growing • Adslot’s two-product strategy is well placed to take advantage of changing market dynamics • In Symphony, the company has a product with strongly growing SaaS based revenues • In Adslot Media, the company has a product that
Slide 47: Key Risks
KEY RISKS. Adslot
Slide 48: Key Risks
KEY RISKS. This section discloses some of the key risks attaching to an investment in Adslot. Before investing in Adslot, you should consider whether this investment is suitable for you having regard to publicly available information and your personal circumstances and following consultation with yo
Slide 49: Key Risks
KEY RISKS. Failure to retain existing customers and attract new customers Adslot’s business depends on its ability to retain existing customers and its growth prospects depend on its ability to attract further business from existing customers and to attract new customers. There is a risk that custom
Slide 50: Key Risks
KEY RISKS. Reliance on Symphony and Adslot trading platform and failure to adequately maintain and develop it Adslot’s business model depends on an ability to continue to ensure that customers are satisfied with Symphony workflow software and the Symphony-Adslot integrated trading platform. There is
Slide 51: Key Risks
KEY RISKS. Ability to attract and retain key personnel Adslot’s success is dependent upon the retention of key personnel, in particular members of the senior management and product teams. In addition, Adslot needs to attract and retain highly skilled software development engineers. Competition for s
Slide 52: Key Risks
KEY RISKS. General risks Adslot is exposed to a number of other general business risks including risks relating to breach of third party intellectual property rights, failure to keep abreast of changes in political and regulatory environments, foreign exchange, potential litigation and certain inves
Slide 53: Key Risks
KEY RISKS. Business factors The continuing economic viability of Adslot will be dependent on managing risk factors normally found in conducting a business, including management of contractual risks, litigation due to breach of agreements or in relation to employees (through personal injuries, indust
Slide 54: Glossary
GLOSSARY. Adslot
Slide 55: Glossary
GLOSSARY. RTB – “Real-Time Bidding”, otherwise known as “programmatic” refers to digital display advertising that is traded in real-time, on an impression-by-impression basis, driven by algorithms representing both buyer (DSP) and seller (SSP). DSP – “Demand-Side Platform” – a technology platform us
Slide 56: Important Notice & Disclaimer
Important Notice & Disclaimer Future performance This Presentation contains summary information about Adslot Limited ABN 70 001 287 510 (ADJ or the This Presentation contains certain references to forecasts, estimates, assumptions and other forward- Company) and its activities as at Friday, 3 August
Slide 57: Thank You
THANK YOU. Adslot