Altitude Group Plc · LSE:ALT
Altitude — Investor Presentation (February 2018)
23 slides from Altitude's investor presentation, February 2018
Slide 1: Accelerating the roll-out of ChannlPro
Accelerating the roll-out of ChannlPro
Slide 2: Disclaimer
Disclaimer The information contained in these slides and any accompanying verbal presentation, any question and answer session and any document or material distributed at or in connection with the verbal presentation (together, the "Presentation") have not been approved by an authorised person withi
Slide 3: Presentation Team
Presentation Team Peter Hallett Executive Chairman • Experienced public company director • Former CFO of Redstone plc and Castleton Technology plc • Previously Finance Director at Texas Homecare and First Quench Nichole Stella President of US Operations • Previous experience of successfully implemen
Slide 4: The Opportunity
The Opportunity $23bn highly fragmented industry in the US, with 90% of orders from smaller* distributors transacted inefficiently ‘offline’ • ChannlPro launched • “White Label” solution combining Altitude’s cloud based e-commerce platform (Channl) and offline CRM order system • AiMpro - first “Whit
Slide 5: Our Progress
Our Progress Channl launched - providing free e-commerce to smaller distributors • a unique free e-commerce and order management platform for personalised products • personalisation technology unrivalled in the industry • buyers and sellers now connected at all intersections of the supply chain • US
Slide 6: Altitude Operating Overview
Altitude Operating Overview Legacy Core Route to Market US 1st “White Label” Solution PUBLICATIONS EXHIBITIONS Trade Catalogues PPD Live Trade Mag PPD Roadshows 2nd “White Label” Solution • aaaaaaaa • Legacy ERP / CRM and Order Management platform • Cloud / web-based promo products UK 6
Slide 7: Recent Achievements and Short Term Milestones
Recent Achievements and Short Term Milestones Sep 2017 Jan 2018 Feb 2018 Apr 2018 • AiM “White Label” ChannlPro • Live PPAI engagement • NAPCO “White Label” • US launch of partnership signed with c.300 AiM delegates ChannlPro partnership signed andeverything.com • PPD Conference • Provides access to
Slide 8: AiM: 5 Years of Rapid Growth
AiM: 5 Years of Rapid Growth AiM Growth Drivers • From c.300 members in 2013 to c.1,515 members by end 2017 AiMpro Rollout Progress • Driven by powerful array of member benefits and self-preservation 7 members transferred from the legacy platform • The growing competitive threat of major corporates
Slide 9: Video Demonstration
ot DANN Video Demonstration CHANNL|PRO Tech Suite
Slide 10: Member & Supplier Engagement is Key
Member & Supplier Engagement is Key GTR dependent on rate of member & supplier engagement Draws in • Suppliers recognise the benefits of becoming a “Preferred AiMpro Supplier” suppliers • Exposure to the fast-growing AiM Group • Trading platform provides members with full e-commerce capability • Eff
Slide 11: Illustrative Gross Transactional Revenue
Illustrative Gross Transactional Revenue “GTR” GTR fee potential from $1.3bn of throughput revenue Offline Orders AiMPro GTR Potential at 90% of Member Contractual commission from suppliers ~6% Adoption 120 10.0% as a % of End User retail value ~3.9% 9.0% 100 BLENDED RATE (% THROUGHPUT) 8.0% 7.0% 80
Slide 12: Illustrative CAC/LTV per AiM Member
Illustrative CAC/LTV per AiM Member • Customer Acquisition Cost (“CAC”) $3,100 Including cost of prospecting and on-boarding + • Cost to Serve (“CTS”) $5,700* Total Cost of Acquisition $8,800 • Lifetime Value (“LTV”) $44,000** • CAC / LTV 5.0 X * Costs to service AiM member over 3 year estimated lif
Slide 13: NAPCO: Second ChannlPro Partnership
NAPCO: Second ChannlPro Partnership NAPCO Publications • New 2 year partnership agreement with Printing Packaging & Publishing division of NAPCO Media (North American Publishing Company), based in Philadelphia US • Altitude will provide a “White Labelled” ChannlPro platform mirroring the AiMpro prod
Slide 14: andeverything.com
“andeverything.com” complementary marketplace aggregator • Soft/test launched in UK mid-January, US launch scheduled later in 2018 • andeverything.com (“AE”) is an aggregating marketplace for promotional products with full Channl personalisation technology • Distributors subscribe for products to be
Slide 15: AdProducts, Customer Focus technology and Exhibitions & Publications
AdProducts, Customer Focus technology and Exhibitions & Publications • Acquired June 2017 for net asset value £0.8m, to supply Channl in UK • UK promotional products supplier/printer: 2016 Revenue £3.5m, EBITDA £0.3m • 2017 post-acquisition trading in line with expectations • New product range to su
Slide 16: Transaction Overview
Transaction Overview Use of Proceeds • Accelerate the roll-out of AiMpro Expected Timetable • Expand US workforce to accelerate on-boarding process of members Marketing 19-22 February and suppliers Book Build 23 & 26 February • Commence the roll-out of new “ChannlPro” solution to NAPCO Announcement
Slide 17: Summary
Summary • ChannlPro “White Label” solution launched • Enables monetisation of online and offline transactions • Mitigates slow speed of market migration to online • AiMpro launched – first “White Label” partner • Access to $1.3bn of revenue throughput • 24 suppliers already signed up to the platform
Slide 18: Appendix
A ALTITUDE GROUP PLC Appendix
Slide 19: Headline Financials
Headline Financials Year Ending 31 December (£m) Data H1 2016 FY 2016 H1 2017 Revenue (£m) 3.0 4.3 3.0 Adjusted EBITDA 0.7 0.6 0.8 Adjusted PBT 0.4 0.1 0.5 Adjusted EPS* 0.9 0.1 1.0 *EPS figures are reflected in GBX 19
Slide 20: ChannlPro - Overview
ChannlPro - Overview “White Label” solution for distributor and supplier platforms • ChannlPro combines Channl’s e-commerce trading solutions with Altitude’s existing CRM and order management system, to allow both online and offline transactions to execute through Channl • The ChannlPro solution is
Slide 21: "Ready to Go" Roll-out Programme Collateral
“Ready to Go” Roll-out Programme Collateral Out-bound Marketing Success Training • Email Marketing • Learning Centre • Social Media Marketing to specific AiM Members • Weekly AiMpro Webinars • Direct Mail Campaigns • Daily Demos Out-bound Call ‘Blitz’ Campaigns Events • Direct Call & Demo Campaign f
Slide 22: 2018 US Resources
2018 US Resources 2018 US RESOURCE PLANNING VP Marketing Appointed Director of Distributor Sales Appointed Director of Supplier Sales Appointed Creative Director Appointed Technical Integration Specialist x3 1 Appointed Director of Education Staff Accountant Customer Success Team Leader x 2 Customer
Slide 23: 2018 AiM Roadshow Tour
2018 AiM Roadshow Tour US States with High Concentration of AiM Members 2018 National Tour • 85% of members (see distribution map) • Social media targeting • Get them in, get them on, get them benefitting • Three sessions a day 23
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