Slide 1: Full Year Results 2021
FULL YEAR RESULTS 2021 21 APRIL 2022 1 LBG Media Full Year Results 2021
Slide 2: The Team
THE TEAM Solly Solomou Arian Kalantari Tim Croston Founder & CEO Co-Founder & COO FCCA CFO 2 LBG Media Full Year Results 2021
Slide 3: 2021 Highlights
2021 HIGHLIGHTS £54.5m £16.8m 31% 122% Revenue Adjusted EBITDA Adjusted EBITDA Cash conversion +81% yoy +206% yoy Margin +13pp yoy $42bn 1 63bn 264m Addressable Content views Social media market +97% yoy followers +31m yoy 1 Source: 2019 report from PwC commissioned by LBG Media 3 LBG Media Full Yea
Slide 4: Social Media Publisher Market
SOCIAL MEDIA PUBLISHER MARKET Source: Visualizing the evolution of global advertising spend (1980-2020) : Visual Capitalist Source: Google Analytics, Facebook Analytics, CrowdTangle, Snapchat Analytics, Twitter Analytics, YouTube Analytics, TikTok Analytics, Google Ads Manager Source: Google Analyti
Slide 5: We Operate in Some of the Fastest Growing Sectors of the Market
WE OPERATE IN SOME OF THE FASTEST GROWING SECTORS OF THE MARKET RAPID GROWTH IN GLOBAL DIGITAL ADVERTISING SPEND... £336bn 12% GLOBAL DIGITAL FORECAST GROWTH ADVERTISING SPEND CAGR 2021 to 2024 LBG Media operates in some of the fastest growing segments 20% 11% 15% SOCIAL VIDEO WEB PROGRAMMATIC CONTE
Slide 6: Strategically Positioned to Capitalise on Global Trends
STRATEGICALLY POSITIONED TO CAPITALISE MOBILE vs TV ON GLOBAL TRENDS VIDEO MOBILE VS TV TIME VIDEO 28% vs 2% 8% 34% CAGR FROM TIME SPENT CAGR FOR AVERAGE TIME SPENT GROWTH IN GLOBAL VIDEO ON MOBILE VS TV ON A SMARTPHONE PER DAY ADVERTISING SPEND 2009-2021 2018-2021 2018-2019 CONSUMER HABITS AND GLOB
Slide 7: Progress Against Our Three Growth Pillars
PROGRESS AGAINST OUR THREE GROWTH PILLARS 01 Geographies 02 Acquisitions 03 Capabilities Established substantial community Refined M&A strategy, defining Now the biggest publisher on of loyal followers outside of core key criteria for targeted TikTok with over 27 million geographies1 acquisitions fo
Slide 8: Arian Kalantari, COO
Arian Kalantari COO 8 LBG Media Full Year Results 2021
Slide 9: The World's Most Engaged Social Publisher
THE WORLD’S MOST ENGAGED SOCIAL PUBLISHER SOCIAL & NON-SOCIAL DIVERSIFYING THE FORMATS THROUGH A PORTFOLIO OF BRANDS PROGRAMMATIC WHICH WE ENGAGE WITH OUR AUDIENCE Video Editorial Image Audio Metaverse 9 LBG Media Full Year Results 2021
Slide 10: Significant Differentiation from Competitors
SIGNIFICANT DIFFERENTIATION FROM COMPETITORS A MULTI PLATFORM GLOBAL AUDIENCE1 CAPTURING A HARD TO REACH AUDIENCE 64 % 18-34 year 29m UK 14.5m olds in UK 119m GERMANY Gender split US 16.5m 138m FRANCE INDIA 59% 41% 18-24 25-34 35-44 45+ 11.6m AUSTRALIA The LADbible generation…millennials & gen Z 1:
Slide 11: Unrivalled Engagement & Views vs Competitors
UNRIVALLED ENGAGEMENT & VIEWS VS COMPETITORS SOCIAL MEDIA FOLLOWERS1 INTERACTIONS1 VIDEO VIEWS1 338m 1,189m 37,864m 325m 777m 22,113m 168m 558m 15,115m 76m 287m 11,720m 66m 142m 4,334m 60m 91m 3,093m 55m 71m 2,478m 36m 56m 423m 15m 50m 81m 15m 48m 7m 4m 13m 4m 1m 2m 1m 1 Source: CrowdTangle. Note da
Slide 12: Speed, Data & Cost: Driving Increased Content & Views
SPEED, DATA & COST: DRIVING INCREASED CONTENT & VIEWS 63bn VIEWS PER ANNUM up 97% YOY 53bn MINUTES OF CONTENT WATCHED PER ANNUM up 140% YOY 264m FOLLOWERS up 31m YOY 12 LBG Media Full Year Results 2021
Slide 13: Engaging Content
ENGAGING CONTENT 13 LBG Media Full Year Results 2021
Slide 14: Taking Our Social Responsibility Seriously
TAKING OUR SOCIAL RESPONSIBILITY SERIOUSLY TALKING MENTAL HEALTH PLASTIC WASTE AWARENESS EQUALITY: GIVING BLOOD Encouraging conversations Registered an area of plastic UNILAD teamed with around mental health amongst waste the size of France as an to create worlds first bloodbank for young people… of
Slide 15: Monetisation
MONETISATION CUSTOMERS ROUTES TO MARKET REVENUE DIRECT BRAND OWNERS Bespoke full funnel marketing £30m £22m Repeat business with INDIRECT DIRECT a roster of blue chip multinational clients Awareness Consideration intrigue Conversion FY21 inspire intent REVENUE 100+ strong creative team INDIRECT £2m
Slide 16: Tim Croston, CFO
Tim Croston CFO 16 LBG Media Full Year Results 2021
Slide 17: Continued Revenue Growth and Diversification
CONTINUED REVENUE GROWTH AND DIVERSIFICATION TOTAL REVENUE DIVERSIFIED REVENUE STREAMS £m 60 £m 60 Direct 50 54.5 Indirect 50 40 40 Other 30 30 29.0 30.2 20 20 20.4 10 10 0 0 2018 2019 2020 2021 2018 2019 2020 2021 81% 39% Growth YOY GROWTH CAGR driven by investment into technology and Direct Indire
Slide 18: Revenue Weighted Towards Second Half
REVENUE WEIGHTED TOWARDS SECOND HALF H1 / H2 REVENUE SPLIT £m 60 H1 50 H2 58% 40 30 57% 67% 20 58% 42% 10 43% 33% 42% 0 2018 2019 2020 2021 42%/58% Seasonal advertising spend with 2020 impacted by decreased advertising spend at the start of the H1/H2 pandemic 18 LBG Media Full Year Results 2021
Slide 19: Costs
COSTS MANAGEMENT OF COSTS1 SPLIT OF SIGNIFICANT NON EXCEPTIONAL COSTS1 40 £m 35 37.7 30 63% Staff costs (ex SBP) 25 22% Content & production 23.3 24.7 20 15 15% Other costs 15.4 10 5 0 2018 2019 2020 2021 45% 50% Continued investment Focus on increase in increase in into technology and disciplined c
Slide 20: Profitability & Cash Generation
PROFITABILITY & CASH GENERATION STRONG ADJUSTED EBITDA & MARGINS ROBUST CASH POSITION 20 Adjusted EBITDA Margin 35% 17 £m 14 30% 25% £34.3m 122% 11 20% CASH CASHFLOW 8 16.8 15% AT YEAR END CONVERSION (2020: £6.9m) 5 10% 2 4.3 4.9 5.5 5% -1 2018 2019 2020 2021 0% 206% 31% £30m BANK LOAN YOY GROWTH EB
Slide 21: Outlook
OUTLOOK GUIDANCE • Digital advertising spend was £336 billion1 in 2021 • YTD performance in line with expectations and is expected to grow at 12% p.a.1 until 2024 – On track to deliver against revenue growth – LBG Media operates within some of the fastest expectations for the full year growing segme
Slide 22: Solly Solomou, CEO
Solly Solomou CEO 22 LBG Media Full Year Results 2021
Slide 23: Driving Future Growth Through Three Key Pillars
DRIVING FUTURE GROWTH THROUGH THREE KEY PILLARS 01 Geographies 02 Acquisitions 03 Capabilities Growing Entry New the Group’s existing into new geographies social platforms community Access Monetising Taking advantage to new target audiences the audience of readily available international audiences O
Slide 24: Summary
SUMMARY Delivered 81% revenue growth and 206% adjusted EBITDA growth year on year Significant addressable market of $42 billion We operate in the fastest growing segments of the market Ambitious plans to grow geographically, through M&A and enhanced capabilities Well positioned to take advantage of
Slide 25: Q&A
Q&A 25 LBG Media Full Year Results 2021
Slide 26: Appendices
APPENDICES 26 LBG Media Full Year Results 2021
Slide 27: Profit & Loss
PROFIT & LOSS Historical Financial Performance Y/e Dec 2019 Y/e Dec 2020 Y/e Dec 2021 £’000 £’000 £’000 Revenue 29,023 30,170 54,502 Growth rate (%) 42% 4% 81% Net operating expenses (25,865) (25,784) (46,255) Operating Profit 3,158 4,386 8,247 Margin (%) 10.9% 14.5% 15.1% Net finance costs (1,035)
Slide 28: Balance Sheet
BALANCE SHEET HistoricalHistorical Financial Performance (audited) Financial Performance H1 Interims (unaudited) Y/e Dec 2020 Y/e Dec 2021 £’000 £’000 Goodwill & other intangibles 15,055 14,558 Property, plant & equipment 4,598 3,705 Investment in JV 244 359 Other 436 469 NON CURRENT ASSETS 20,333 1
Slide 29: Cashflow
CASHFLOW Historical Financial Performance H1 Interims (unaudited) Y/e Dec 2019 Y/e Dec 2020 Y/e Dec 2021 £’000 £’000 £’000 Adjusted EBITDA 5,745 5,472 16,757 Cash from Operating Activities 6,742 1,950 13,004 Operation cashflow conversion (%) 117% 37% 78% Tax received / (paid) (361) (1,088) (678) Pur