Ebiquity Plc · LSE:EBQ
Ebiquity — FY2012 Earnings Presentation
30 slides from Ebiquity's earnings presentation, July 2012
Slide 1: Final Results Presentation Year ended 30 April 2012
Final Results Presentation Year ended 30 April 2012 July 2012 1 an Ebiquity company
Slide 2: Review of the year
Change sub heading - via *View* / HEADER & FOOTER Review of the Year ended 30 April 2012 year 2
Slide 3: Strong year on year performance
Strong year on year performance Profit and earnings growth in line with expectations Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underly
Slide 4: Business growth
Business growth International expansion and broadened Ebiquity offering Development into social media and brand reputation Echo Research Russian media analytics Joined Up Media Company Australian media analytics Faulkner Media Management Expanded international presence Fairbrother Lenz Eley 4
Slide 5: 5 year review: Taking stock
Change sub heading - via *View* / HEADER & FOOTER 5 year Taking stock review 5
Slide 6: Major achievements
Major achievements 2008 2012 International business 26% 76% Germany revenue £nil £7.6m* France revenue £nil £1.4m* US revenue £1.3m £7.5m New Business units in Russia, Australia, Italy with franchise partners in Spain/Nordics New international data centre in Newcastle with approx 235 employees * On
Slide 7: 5 year revenue growth
5 year revenue growth £52.9m £k £17.2m 7
Slide 8: 5 year underlying operating profit growth
5 year underlying operating profit growth £8.2m £k £2.0m 8
Slide 9: 5 year underlying diluted EPS growth
5 year underlying diluted EPS growth 7.4p 4.3p pence 9
Slide 10: 2011/12 highlights
2011/12 highlights • Strong growth despite economic head winds • Clients remain cautious and contract closing is slow • Growth in Analytics division underlines success of core strategy - "adding value to data" • Contract renewals remain strong at over 90% in value across both divisions • Multi-geogr
Slide 11: 5 key factors driving importance of the market
5 key factors driving importance of the market 1.Proliferation of marketing and media channels and the impact of digital media distribution 2.Rise of user-generated content such as social media and blogs, which have lead to the increasing empowerment of consumers 3.Challenges of multi-channel market
Slide 12: Financial Summary
Financial Year ended 30 April 2012 Summary 12
Slide 13: Year on year revenue analysis
Year on year revenue analysis Revenue increase of 20% £k 2011 43,329 - 836 44,165 movement 977 8,488 (711) 8,754 2012 44,306 8,488 125 52,919 13
Slide 14: Revenue from current year acquisitions
Revenue from current year acquisitions Results consolidated from date of control £k Both columns are year ended 30 April 2012 14
Slide 15: Revenue analysis by segment
Revenue analysis by segment Strong shift towards Analytics business Analytics Analytics organic acq’n p-f growth growth 9% 8% 15
Slide 16: Pro forma continuing revenue analysis
Pro forma continuing revenue analysis Continuing organic revenue plus pro forma acquisitions £k 16
Slide 17: Gross margins
Gross margins Positive impact of synergy release and disposal of underperforming business 2011 2012 Analytic s Platform Total Total gross profit £29,898k (2011: £24,799k) 17
Slide 18: Year on year underlying operating profit analysis
Year on year underlying operating profit analysis Positive impact of synergy release, acquisitions and disposal of underperforming business £k 2011 5,830 - (532) 5,298 Movement 1,429 1,044 434 2,907 2012 7,259 1,044 (98) 8,205 18
Slide 19: Underlying margins
Underlying margins Positive impact of synergy release and disposal of underperforming business 2011 2012 EBITDA Operatin g profit (EBIT) 19
Slide 20: Highlighted items – administration expenses
Highlighted items – administration expenses Low level of integration costs £k £6,546 £4,607 k k In addition to the above highlighted items within administration expenses, £311k of capitalised loan arrangement fees were written off at the time of the refinancing exercise in March 2012 - 20
Slide 21: Profit before tax and EPS
Profit before tax and EPS Strong growth in underlying profit and EPS 30 April 30 April 2011 2012 Underlying operating 5,298 +55% 8,205 result Highlighted items (6,546) (4,607) Reported operating (1,248) 3,598 result Net finance costs (528) (644) Highlighted finance costs - (311) Reported result befo
Slide 22: Financing analysis
Financing analysis £11m of available facility…comfortably in line with all banking covenants Gross debt £k Gross debt 7,685 18,353 Cash 3,158 6,190 Net debt 4,527 12,163 Gross 1.2 1.7 debt/EBITDA¹ Net debt/EBITDA¹ 0.7 1.1 22 ¹EBITDA based on 12m historic pro forma
Slide 23: Strong year on year performance
Strong year on year performance Profit and earnings growth in line with expectations Revenue growth Total revenue of £52.9m up 20% Operating profit growth Total operating profit of £8.2m up 55% Organic operating profit up 35% Margin and earnings growth Operating margin up from 12.0% to 15.5% Underly
Slide 24: Outlook 12/13 and beyond
Change sub heading - via *View* / HEADER & FOOTER Outlook 2012/13 and beyond 24
Slide 25: Outlook
Outlook • Ebiquity remains a first mover in media and marketing performance measurement • Underlying drivers of market growth remain strong • Renewals and new business pipeline on track • However lack of confidence in economic recovery will continue to act as a brake on growth • Cautiously optimisti
Slide 26: Financial Appendices
Financial Year ended 30 April 2012 Appendices 26
Slide 27: Appendix: Acquisitions during the year
Appendix: Acquisitions during the year Acquisitions Disposal Echo Research Joined Up Faulkner Fairbrother Newslive Group Media Media Lenz Eley Company Managemen t Nature of business Reputation Media analytics Media analytics Media analytics UK editorial management in Russia/CEE in Australia/NZ world
Slide 28: Appendix: Statement of financial position
Appendix: Statement of financial position April 2012 April 2011 Non current assets Goodwill 43,291 31,457 Purchased intangibles 11,864 8,350 Other 4,520 4,247 59,675 44,054 Current assets Trade debtors 13,818 10,143 Accrued income 4,447 2,130 Cash 6,190 3,158 Bank security deposits - 200 Prepayments
Slide 29: Appendix: Cash flow statement
Appendix: Cash flow statement Year ended Year ended 30 April 2012 30 April 2011 Cash generated from operations 2,493 1,430 Finance expense (527) (339) Income taxes paid (792) (757) Net cash from operating activities 1,174 334 Investing activities Acq’n of subsidiaries, net of cash acquired (9,934) (
Slide 30: Appendix: Summary of new banking facility
Appendix: Summary of new banking facility In place from March 2012 on 4 year term • £30m multi-currency facility • Approx £19m drawn • Approx £11m available (nb. estimated future earn out payments of £7.2m*) • Interest rate of 2.75% plus LIBOR (can be lowered from March 2013 depending on covenants)