Eagle Eye Solutions Group Plc · LSE:EYE
Eagle Eye Solutions — H1 FY2020 Earnings Presentation
35 slides from Eagle Eye Solutions's earnings presentation, Mar 17, 2020
Slide 1: Interim Results for the 6 months ended 31 December 2019
Hello. eagleeye Interim Results for the 6 months ended 31 December 2019 First customer wins in new geographies, growth in revenue and positive adjusted EBITDA Eagle Eye Solutions Group plc
Slide 2: We are Eagle Eye
eagleeye Hello. We are Eagle Eye. Our mission is to transform marketing for a digital world by bridging online to offline Eagle Eye enables companies to digitally connect to their customers through promotions, loyalty, apps, subscriptions and gift services Our mantra is digitally enabled and data dr
Slide 3: Executive Summary - our opportunity is significant
eagleeye Executive Summary - “our opportunity is significant” * Strong trading period: 26% growth in revenue and move to positive adjusted EBTIDA* * Expansion of the customer base, including first US and NZ customers * Significant volume growth through the platform, driven oy successful go-lives of
Slide 4: Increasing addressable market through geographic expansion
eagleeye 4 Increasing addressable market through geographic expansion =" es Opportunity remains huge * Industry mainly still analogue Rapid growth in digital advertising spend * Mobile is 33% of digital advertising market * * Promotions market has not followed MOFF tae LX > Evermore sophisticated on
Slide 5: Financial update
eagleeye Financial update
Slide 6: Key KPIs
eagleeye Key KPIs Revenue growth to £10.1m (H1 19: £8.0m) * Delivering on our customer strategy + AIR growth 28% (£9.6m) Recurring revenue (H1 19: 72%) Adjusted EBITDA (H1 19: EBITDA loss of £0.3m) 81% Churn (H1 19: 0.4%) * Plus contract renewals Net debt; cash burn of £0.9m (H1 19: outflow £2.1m) +
Slide 7: Revenue split by business model
eagleeye Revenue split by business model H1 20 H1 20 H119 H119 % of total % of total One off implementation | £2.8m 27% £2.2mM 28% fees Recurring revenue: Licence fees £3.8m 38% £2.9m 36% Transaction fees £3.0m 30% £2.3m 29% SMS fees £0.5m 5% £0.5m 7% £10.1m 100% £8.0m 100%
Slide 8: Interaction and redemption volumes
eagleeye Interaction and redemption volumes * Overall AIR redemption and interaction 700 volumes increased by 81% to 791m in H1 600 m) 20 (H119: 438m) f \ * Growth driven by go-lives of Tier 1 customers * H2 20 volumes expected to grow from full period effect of launching of existing transactions N
Slide 9: H1 FY20 - Income Statement
eagleeye 9 H1 FY20 - Income Statement * 26% revenue growth, delivering on our strategy £000 H120 H119 VAR VAR % . Revenu ,072 26% + 949%66M IppaheadorH) IS AiRcMmentincs ~— SI at 97% Cost of Sales (636) (577) (60) (10)% * £8.2m net operating expenses Operating costs ny: 608) (8,934) (674) (8)% * £0.
Slide 10: Half on Half analysis
eagleeye 10 Half on Half analysis 12 * 73% continued high percentage of subscription and transactional revenue 10 (H2 19: '70%) * Implementation revenue value & 8 mSMS represents key customers retaining g international professional services as well as new wins 5 Y Ss 6 Y # Brands e Z * 31% growth UK
Slide 11: Net debt bridge
eagleeye Net debt bridge em z) * £0.9m operating cash inflow - EBITDA @ £1.3m, working cap outflow £0.3m, £0.2m ce} Y overseas corporate tax payments os Z Z * £1.6m: £1.5m capital expenditure on AIR, 4 Z IFRS 15 contract costs capitalised £0.1m % 15 on wY Ww * £2.2m net debt at 31 December 19 2 % %
Slide 12: Strategic update
eagleeye Strategic update
Slide 13: Strategic focus in the year
eagleeye Strategic focus in the year 1 To win new customers, transact through our platform, deepen with additional products from our portfolio 2 To develop new products to provide further upsell opportunities across our customer base and strengthen our competitive positioning 3 ‘To enter new geograp
Slide 14: Delivering on our customer strategy
eagleeye Delivering on our customer strategy Win + Increas V both in UK and new ¢ * Uplift in “win” revenue in the period * 335 customers and brands on the platform (H119: 316) Transact * Increased platform volumes by 81% + Branded drinks campaign revenue increased 192% to £0.3m 119: £0.1m) * First
Slide 15: Innovation to increase ease of use, breadth of capabilities
eagleeye Innovation to increase ease of use, breadth of capabilities and cross-industry applicability Increased usage of applications * Digital Wallet: now used by 21 customers (end H119: 5) * Eagle Eye App: registered users up 76% to over 4 million, extended capabilities to incorporate more of AIR,
Slide 16: North America update
eagleeye North America update ° We believe it will be the largest digital promotions market in the world * Good progress with News America Marketing (partnership signed in March 2019) * Growing pipeline + First US contract signed with Southeastern Grocers (SEG), a top 20 US supermarket * 5 year cont
Slide 17: Powering 'SEG Connects' to monetise data and media channels
eagleeye Powering ‘SEG Connects’ - to monetise data and media channels 17
Slide 18: Eagle Eye Digital Wallet at the heart of 'SEG Connects'
eagleeye 18 Eagle Eye Digital Wallet at the heart of ‘SEG Connects’ to enable personalisation Welaon were wen adh em sho All About -verything we need to create a lized marketing experience.
Slide 19: Creating new omnichannel opportunities for monetisation
eagleeye Creating new omnichannel opportunities for monetisation * Creating a connected experience * Phased rollout * Increased and enhanced media channels * Serving customers with the most relevant offers through the channels they respond to the most Targeted Email SEG Customers 5) een - New Gstome
Slide 20: Australia and New Zealand update
eagleeye Australia and New Zealand update * Strong ties with the UK retail market * September 2019 secured 3 year contract: a leading New Zealand retailer * Now moved to pilot launch with employees * Further roll out expected over the next 12 months * Healthy pipeline 20
Slide 21: Better, Simpler, Cheaper
eagleeye Better, Simpler, Cheaper Investing in innovation and growing the business whilst looking for inherent productivity and efficiencies from scale - material growth in EBITDA in the period Completion of successful Google Cloud migration in August 2019 * Access to GCP tools and technologies + Up
Slide 22: Outlook
eagleeye Outlook Commerciai 1 in cont fidence
Slide 23: Outlook - Board looks to the long-term success with confidence
eagleeye Outlook - “Board looks to the long-term success with confidence” Trading - positive start to second half and remains in line with Board expectations EBITDA - building on efficiencies in H1 whilst releasing investment to support wins in new geographies Funding - position is comfortable with
Slide 24: Eagle Eye investment case - summary
eagleeye 24 Eagle Eye investment case - summary ‘ELoblaws Mitchelts(©) stonegate &Butlers Southeastern ‘Grocers Sainsbury's a *Strongmarketdrivers = — @ TESCO ASK ITALIAN ALL:-BAR-ONE * Proven powerful technology * Extensive loyal customer base * Growing recurring revenues and wel! managed cost base
Slide 25: Appendix
eagleeye Appendix Commerciai 1 in cont fidence
Slide 26: Balance Sheet
eagleeye Balance Sheet £'000 H1 20 Non-current assets 7,698 Trade and other receivables 6,076 Cash and cash equivalents 1,239 15,013 Current liabilities (6,749) Financial liabilities (3,400) Non-current liabilities (817) (10,966) H119 7458 6,565 630 14,653, (7,071) (2,400) (616) (10,087) VAR 240 (48
Slide 27: Cashflow
eagleeye Cashflow £000 H1 20 H119 VAR % EBITDA 1,280 (294) 1,574 535% (259) (266) Movement in working capital 3% Net tax payments (153) (1) (152)| (15,300)% Net operating cashflows 868 (561) 1,429 255% Capital expenditure (1,500) | (1,283) (217) (17)% Lease payments (156) (156) : -% Issue of equity
Slide 28: Share register
eagleeye Share register % Bill Currie 3,413,322 13.26% Sir Terry Leahy 2,420,970 9.41% Andrew Sutcliffe 2,032,158 7.20% Cavendish Asset Management Limited 1,831,001 7.11% Hargreave Hale Limited 1,679,667 6.53% Christopher Gorell Barnes 1,531,866 5.95% Steve Rothwell 1,511,672 5.87% Julian Reiter 1,3
Slide 29: Who we are
eagleeye Who we are Commerciai 1 in cont fidence
Slide 30: Our Board and Executive team
eagleeye Our Board and Executive team ate a mn Malcolm Wall * Sir Terry Leahy * Bill Currie * Robert Senior* Chairman Non-Executive Director Non-Executive Director Non-Executive Director Tim Mason *a Steve Rothwell *» Lucy Sharman-Munday *a Al Hendersona David Aylmer « CEO CTO and Founder CFO cso co
Slide 31: Supporting the end-to-end customer journey
eagleeye 31 Supporting the end-to-end customer journey Acquire Interact Retain bp Reach new customers Develop relevant customer Build loyalty and via any channel relationships engender advocacy
Slide 32: Components for success
eagleeye 3 components for success We believe there are three main components to success: ¥ Great UX- entice and engage the customer Transactional capability to drive data points on behaviour Manage data to drive segmentation and future transactions User Experience Data Management 32
Slide 33: One platform many products
eagleeye 33 One platform many products = * One customer view linking online to A offline * Speed, scale and security * Easy to integrate via API to POS * 100% customer base coverage IN acquisition to retention D%OFF y Ne = * Network capability to reach new audiences Coupons Loyalty Apps Subscription
Slide 34: Eagle Eye in action
34 eagleeye in action ab ar \enae poobe | 2c Oe ®
Slide 35: Illustrative contract lifecycle
eagleeye Illustrative contract lifecycle 1 Implementation periods based on complexity 2 Licence fees start at a reduced rate. Full rate from launch z Transaction growth with digital adoption and more use cases 4 On average customers adopt new services | year after launch 5 Opportunity - Brands to en
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