Slide 1: Company Presentation: Year Ended 30 April 2014
COMPANY PRESENTATION YEAR ENDED 30 APRIL 2014 July 2014
Slide 2: Contents
COMPANY PRESENTATION Contents 1 Review of the year 4 Financial appendices 2 Financial review 5 Company background 3 Outlook 2
Slide 3: 1. Review of the Year
1. REVIEW OF THE YEAR
Slide 4: Key events in the year
REVIEW OF THE YEAR Key events in the year New company structure positions company to benefit from continually evolving global marketing industry • Business restructured into three focused business segments: • Media Value Measurement (MVM) • Market Intelligence (MI) • Marketing Performance Optimizati
Slide 5: Financial highlights
REVIEW OF THE YEAR Financial highlights • 8th successive year of growth delivering £68.5m revenue (2013: £64.0m) • Underlying operating profit growth of 9% at £11.3m (2013: £10.4m) • Underlying diluted EPS of 10.1p, up 12% (2013: 9.00p) • Future-focused segments of business delivering strong organic
Slide 6: Business model
REVIEW OF THE YEAR Business model Unique Actionable Improved Increasing Recurring data insights ROI Scope revenues Access to Skilled at Improve Growing into Set brand unique data analysing efficiency and new KPI’s with sets which data to effectiveness geographies measurement are provide of clients a
Slide 7: Strategy and strategic priorities
REVIEW OF THE YEAR Strategy and strategic priorities BUILD INCREASE To build data, analytics and software To increase our brand profile and reputation capabilities to provide our clients with insights Priorities Priorities Protect competitive advantage Work with marketing associations to build profi
Slide 8: 2. Financial Review
+ ro | 2. FINANCIAL REVIEW
Slide 9: Revenue
FINANCIAL REVIEW Revenue MVM £36.5m 53% Up 9% on LFL basis. Organic growth of 8% MI £27.2m £68.5m 40% Down 7% on LFL and organic basis MPO £4.8m 7% Up 32% on LFL and organic basis Total revenue up 7% at reported rates from £64.0m to £68.5m 9 Total revenue up 8% at constant currency rates from £64.0m
Slide 10: Client analysis
FINANCIAL REVIEW Client analysis Revenue from Renewal 85% renewable contracts 91% rate (by value) Revenue from Top 100 79% international sources¹ 70% clients taking 2+ services 10 ¹International sources defined as multi-territory or non-UK domestic
Slide 11: Underlying operating profit
FINANCIAL REVIEW Underlying operating profit 2014 2013 2014 Operating profit £11.3m £10.4m Margin % 16.6% 16.3% Operating profit up 9% at reported rates from £10.4m to £11.3m Operating profit up 10% at constant currency rates from £10.4m to £11.5m Margin increase driven by operational gearing 11
Slide 12: Underlying margins
FINANCIAL REVIEW Underlying margins 2014 2013 2014 Gross 56.2% 54.2% EBITDA 18.7% 18.3% Operating 16.6% 16.3% Gross profit margin benefited from organic operational gearing and strong margins from acquired entities EBITDA and operating margins benefited from above plus effective management of Centra
Slide 13: Underlying profits and EPS
FINANCIAL REVIEW Underlying profits and EPS 2014 2013 Operating profit £11.3m £10.4m PBT £10.2m £9.5m Diluted EPS 10.1p 9.0p Underlying operating profit up 9%...Underlying PBT up 7%...Underlying diluted EPS up 12%% 13
Slide 14: Net debt analysis
FINANCIAL REVIEW Net debt analysis £30,000 • Net debt at 30 April 2014 of £22.8m (2013: £15.5m) AMOUNT £’000s £25,000 • Comfortable leverage at 1.8x pro forma EBITDA £20,000 • £9.8m drawn in the year for acquisitions • New banking facility in place from July 2014: £15,000 – £40m facility with 4 year
Slide 15: Financial highlights
FINANCIAL REVIEW Financial highlights Revenue EPS +7% £68.5m +12% 10.1p Operating Operating +9% profit £11.3m +0.3pp mgn 16.6% 15
Slide 16: 3. Outlook
3. OUTLOOK
Slide 17: 14/15 and beyond
OUTLOOK 14/15 and beyond 1. Market dynamics continue to favour Ebiquity’s growth strategy 2. New structure will enable greater focus on growth markets 3. Continued emphasis on software to enable margin growth 4. Economic climate building greater customer confidence 5. Strong pipeline and high visibi
Slide 18: 4. Financial Appendices
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Slide 19: Segmental reporting
FINANCIAL APPENDICES Segmental reporting 12m to April 2014 Media Value Market Marketing Reportable Unallocated Total Measurement Intelligence Performance Segments Optimization Revenue 36,477 27,162 4,813 68,452 - 68,452 u/l operating profit 10,289 4,801 1,523 16,613 (5,274) 11,339 12m to April 2013
Slide 20: Recent performance
FINANCIAL APPENDICES Recent performance 2009/10 2010/11 2011/12 2012/13 2013/14 Revenue 21,218 44,165 52,919 64,046 68,452 growth 15% 108% 20% 21% 7% Op profit 2,643 5,298 8,205 10,441 11,339 margin 12.5% 12.0% 15.5% 16.3% 16.6% EPS 5.6p 6.0p 7.4p 9.0p 10.1p 20 all numbers in £’000s unless otherwise
Slide 21: Year on year revenue analysis
FINANCIAL APPENDICES Year on year revenue analysis Organic Acquisitions Total Year ended 30 April 2013 62,272 1,774¹ 64,046 Prior year disposals (235) - (235) Year ended 30 April 2013 pro forma 62,037 1,774 63,811 Organic revenue increase 1,137 - 1,137 Full year impact of prior year 1,234¹ 1,234 - a
Slide 22: Renewals analysis
FINANCIAL APPENDICES Renewals analysis % renewable % renewal rate revenue (value) MVM 98% 94% MI 77% 87% Total 85% 91% <20% of MPO is renewable 22
Slide 23: Cross-selling analysis
FINANCIAL APPENDICES Cross-selling analysis 2010/11 2011/12 2012/13 2013/14 2 services 10% 13% 11% 11% 3+ services 1% 1% 3% 4% 2+ services 11% 14% 14% 15% Top 100 global advertisers¹ 84 of the 100 89 of the 100 91 of the 100 90 of the 100 Two thirds of the 90 clients from the Top 100 global advertis
Slide 24: Highlighted items
FINANCIAL APPENDICES Highlighted items 2014 2013 Recurring (non-cash) £2.2m £2.5m Non recurring £4.5m £0.4m Total £6.7m £2.9m Recurring: Reduction in amortisation of purchased intangibles Non-recurring: Increase in acquisition, integration and property 24
Slide 25: Profit before tax
FINANCIAL APPENDICES Profit before tax 2014 2013 Underlying operating profit +9% 11,339 10,441 Highlighted items (6,727) (2,936) Reporting operating profit 4,612 7,505 Net finance costs/associates (1,172) (949) Reported profit before tax 3,440 6,556 Underlying profit before tax +7% 10,167 9,492 25
Slide 26: Outstanding deferred consideration
FINANCIAL APPENDICES Outstanding deferred consideration As at 30 April 2014 2012/13 2013/14 Firm Decisions Stratigent CMCG Nature of business Media cost auditing globally Multi-channel analytics in the US Media auditing in China Operations London, NYC, Sydney Chicago Shanghai and Beijing Transaction
Slide 27: Statement of financial position
FINANCIAL APPENDICES Statement of financial position April 2014 April 2013 Non current assets Goodwill 55,121 47,864 Purchased intangibles 12,659 11,970 Other 6,393 5,018 74,173 64,852 Current assets Trade debtors 15,683 13,890 Accrued income 8,287 6,014 Cash 6,521 7,109 Prepayments 1,907 1,589 Othe
Slide 28: Cash flow statement
FINANCIAL APPENDICES Cash flow statement 12m to 30 April 2014 12m to 30 April 2013 Cash generated from operations 6,799 7,526 Finance expense (841) (701) Income taxes paid (1,159) (1,582) Net cash from operating activities 4,799 5,243 Investing activities Acq’n of subsidiaries, net of cash acquired
Slide 29: Summary of new banking facility
FINANCIAL APPENDICES Summary of new banking facility • £40m multi-currency facility in place, maturing in July 2018 • Accordion option to increase by a further £20m • Approx £30.8m drawn and outstanding • Approx £9.2m available • Interest rate of 2.5% plus LIBOR (can be lowered depending on covenant
Slide 30: Cash and net debt analysis
FINANCIAL APPENDICES Cash and net debt analysis Cash Gross debt Net debt Opening at 1 May 2013 7,109 (22,636) (15,527) Trading cash flow 6,014 - 6,014 Interest and tax (2,000) - (2,000) Debt repayments (3,937) 3,937 - Drawdown for acquisitions 10,766 (10,766) - Payments for acquisitions (9,797) - (9
Slide 31: Shareholder Analysis
FINANCIAL APPENDICES Shareholder Analysis Name Holding % Holding Name Holding % Holding Artemis 7,924,430 10.50% Michael Greenlees 230,000 0.30% Kabouter 7,078,199 9.38% Nick Manning 230,000 0.30% JO Hambro 6,361,000 8.43% Andrew Beach 209,476 0.28% T Rowe Price 5,998,300 7.95% Richard Nichols 100,0
Slide 32: 5. Company Background
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Slide 33: Ebiquity's market
COMPANY BACKGROUND Ebiquity’s market The advertising and marketing industry is becoming increasingly consolidated and globalized Advertisers are under extreme pressure to demonstrate marketing spend ROI Marketing and media channels have proliferated even further Consumer data available to brands has
Slide 34: Key features and benefits of Ebiquity's offering
COMPANY BACKGROUND Key features and benefits of Ebiquity’s offering 1. Must-have data 2. Advanced AdvancedAnalytics analytics 3. Independent IndependentInsight insight •Proprietary media buying data •Media buying measurement, •Unique independent positioning pool benchmarking and ROI outside agency w
Slide 35: Global presence and expertise
COMPANY BACKGROUND Global presence and expertise • Over 800 people worldwide • Operate from over 15 global offices plus an extensive partner network • Working with over 1,100 clients across multiple sectors including over 90 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chica
Slide 36: Ebiquity proprietary reports
COMPANY BACKGROUND Ebiquity proprietary reports Dashboard reporting Customized for each client Secure Tablet compatible 36
Slide 37: New business structure
COMPANY BACKGROUND New business structure • Audits of media planning and buying across 25 • Monitors marketing and advertising content and markets worldwide activity across the full range of media • Tracking of agency guarantees and invoices • Aggregated international advertising and social media an
Slide 38: Media Value Measurement
Media Value Measurement 53% of total revenue
Slide 39: Unique proposition
MEDIA VALUE MEASUREMENT Unique proposition 1. Unique database 2. Independence • Deepest and most • Clients desire for objectivity comprehensive database in the • Unique ability to hold agencies to market account • Very hard for any competitor to replicate 5. Stickiness of contracts 3. Technology plu
Slide 40: Media Benchmarking – The Rack
MEDIA VALUE MEASUREMENT Media Benchmarking – The Rack 40
Slide 41: Value Track – Performance Guarantees
MEDIA VALUE MEASUREMENT Value Track – Performance Guarantees 41
Slide 42: Market Intelligence
Market Intelligence 40% of total revenue
Slide 43: Broad offering
MARKET INTELLIGENCE Broad offering 1. Insight 2. Portfolio In depth bespoke Subscription research projects platform that that give clients an provides 'deep-dive' impartial conclusion advertising analytics on the performance in the UK, Germany of their marketing and Australia 3. Portfolio Internatio
Slide 44: Portfolio – domestic competitive monitoring
MARKET INTELLIGENCE Portfolio – domestic competitive monitoring 44
Slide 45: Portfolio+ – international competitive monitoring
MARKET INTELLIGENCE Portfolio+ – international competitive Monitoring 45
Slide 46: Sonar – Brand sentiment dashboard
MARKET INTELLIGENCE Sonar – Brand sentiment dashboard 46
Slide 47: Marketing Performance Optimization
Marketing Performance Optimization 7% of total revenue
Slide 48: Providing high certainty of outcomes
MARKETING PERFORMANCE OPTIMIZATION Providing high certainty of outcomes High certainty of outcome Data-informed decisions Benchmark Performance Set KPI’s Determine key business drivers Test impact of options/choices Understand their interconnectivity Limit number of variables Landscape the market Ju
Slide 49: Helping brand owners predict their business
MARKETING PERFORMANCE OPTIMIZATION Helping brand owners predict their business Helps brand owners predict how their business will perform by optimizing media choices Measurement Measure the profit effectiveness of our clients’ marketing and advertising activity Modelling Statistical models calculate
Slide 50: KPI Dashboard
KPI Dashboard And Commentary In-depth Com
Slide 51: ACQUISITION S |
ACQUISITION S | Aslow start to 2013 6 3k but the green shoots are appearing By Mark Evans We start 2013 in an uncertain place Externally the full implications of the Gender Directive are yet to be fully understood. The market remains incredibly competitive; PCW spend is increasing whilst both home a
Slide 52: ebiquity.com contact details
® ebiquity.com @ blog.ebiquity.com y @ebiquityglobal m™] enquiries@ebiquity.com Data-driven in “as