Ebiquity Plc · LSE:EBQ

Ebiquity — H1 2015 Earnings Presentation

39 slides from Ebiquity's earnings presentation, January 2015

  1. Slide 1: Interim Results Presentation: Six Months Ended 31 October 2014

    INTERIM RESULTS PRESENTATION SIX MONTHS ENDED 31 OCTOBER 2014 January 2015

  2. Slide 2: Contents

    INTERIM RESULTS PRESENTATION Contents 1 Half year review 4 Financial appendices 2 Financial review 5 Market and capabilities 3 Outlook 2

  3. Slide 3: 1. Half Year Review

    pa preteM Cae ReVenN Ye ¢ RESULT 9 c ereneor's > [SUCCESS] pee Ue B® tee re aoe WWW 6 g researchy ao se ue thea te steckegy 2 nee Bite os Gir. fons TEAM Hah ge ys: cart “establish ae ai ities! Treats ./Vi5\on.options o& Strengths market Hig A ity ee proouer. eS | Lead wae AR 3) in cn r ae ws nN ay =

  4. Slide 4: Unique end to end capabilities

    HALF YEAR REVIEW Unique end to end capabilities Market Intelligence Competitive intelligence in up to 70 markets worldwide Media Value Measurement Holding media buyers to account by benchmarking media and evaluating performance Marketing Performance Optimization Multi source data analytics help comp

  5. Slide 5: Global presence and expertise

    HALF YEAR REVIEW Global presence and expertise • Over 800 people worldwide • Operating from over 15 global offices plus an extensive partner network • Working with over 1,000 clients across multiple sectors including over 90 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chica

  6. Slide 6: Financial highlights excluding currency impact

    HALF YEAR REVIEW Financial highlights excluding currency impact Total revenue up 12% Like for like revenue up 7% Underlying operating profit up 16% Underlying PBT up 17% Underlying EPS up 14% 6

  7. Slide 7: Key events in the period

    HALF YEAR REVIEW Key events in the period Strong operational and financial performance Maiden dividend intended Two new Non-Executive Directors Significant management appointments across the Group New Singapore office performing well Upgrade of Portfolio Platform (MI) 7

  8. Slide 8: 2. Financial Review

    2. FINANCIAL REVIEW

  9. Slide 9: 5% foreign exchange impact on revenue

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 5% foreign exchange impact on revenue Euro £0.7m negative 29% impact on revenue 2014 fx rate 1.25 2013 fx rate 1.17 US Dollar Revenue £0.5m negative GBP 36% by currency 23% impact on revenue 2014 fx rate 1.67 2013 fx rate 1.56 Aus Dollar £0.3m negative 8

  10. Slide 10: Revenue analysis

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Revenue analysis 2013 reported £32.7m 2014 reported £35.0m 2014 c/currency £36.6m Total growth 7% Total growth constant currency 12% Like for like (“LFL”) constant currency 7% 10 Constant currency: current year foreign currency denominated results restat

  11. Slide 11: Revenue by segment

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Revenue by segment MVM £18.2m 52% LFL constant currency up 11% Total up 10% MI £13.1m £35.0m 38% LFL constant currency down 1% Total down 5% MPO £3.7m 10% LFL constant currency up 21% Total up 60% 11

  12. Slide 12: Client analysis

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Client analysis Revenue from Renewal 89% renewable contracts 90% rate (by value) Revenue from Top 100 79% international sources 69% clients taking 2+ services 12 International sources defined as multi-territory or non-UK domestic

  13. Slide 13: Underlying operating profit and margin

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Underlying operating profit and margin Operating profit Margin £4.1m 2013 reported 12.5% £4.1m 2014 reported 11.9% £4.7m 2014 c/currency 12.9% Total growth 1% Total growth constant currency 16% Like for like constant currency 8% 13 £0.6m negative fx impa

  14. Slide 14: Underlying diluted EPS analysis

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Underlying diluted EPS analysis 2013 reported 3.06p 2014 reported 3.00p 2014 c/currency 3.49p Reported broadly flat year on year 14% increase at constant currency 14

  15. Slide 15: Net debt analysis

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Net debt analysis £35,000 AMOUNT £’000s £30,000 • Net debt at Oct 2014 of £30.4m (Apr 14: £22.8m) £25,000 • £5.1m drawn in the period for acquisitions £20,000 • £4.0m undrawn at Oct 2014 £15,000 • £20m accordian facility also available (s/t approval) £10

  16. Slide 16: Financial highlights excluding currency impact

    FINANCIAL REVIEW: 6 MONTHS TO 31 OCTOBER 2014 Financial highlights excluding currency impact Revenue EPS +12% £35.0m +14% 3.0p Operating Operating +16% profit £4.1m +0.4pp mgn 11.9% 16

  17. Slide 17: 3. Outlook

    3. OUTLOOK

  18. Slide 18: Remainder of 14/15 and beyond

    OUTLOOK Remainder of 14/15 and beyond Increasing momentum behind ‘big data’ analytics - market estimated to be worth $100 billion1 by 2018 Strong growth in key segments (MPO and MVM) MI showing signs of stabilisation with new initiatives Investment in strengthened management team key to driving futu

  19. Slide 19: 4. Financial Appendices

    93s 4. FINANCIAL APPENDICES .* * 2 a = # > 2 ge ed _ ZO I k i Ht - NA ||

  20. Slide 20: Segmental reporting

    FINANCIAL APPENDICES Segmental reporting 6m to October 2014 MVM MI MPO Total segments Unallocated Total Revenue 18,168 13,141 3,662 34,971 - 34,971 u/l operating profit 3,837 1,816 1,446 7,099 (2,953) 4,146 Margin 21.1% 13.8% 39.5% 20.3% 11.9% 6m to October 2013 MVM MI MPO Total segments Unallocated

  21. Slide 21: Year on year revenue analysis

    FINANCIAL APPENDICES Year on year revenue analysis Organic Acquisitions Total 6 months ended 31 October 2013 32,071 609¹ 32,680 Organic revenue increase 1,854 - 1,854 Foreign exchange impact (1,460) (176) (1,636) Full year impact of prior year acquisition - 1,304¹ 1,304 Revenue from current year acq

  22. Slide 22: Renewals analysis

    FINANCIAL APPENDICES Renewals analysis % renewable % renewal rate revenue (value) MVM 100% 90% MI 89% 90% MPO 31% n/a Total 89% 90% 22

  23. Slide 23: Highlighted items

    FINANCIAL APPENDICES Highlighted items 6 months to 6 months to 31 Oct 2014 31 Oct 2013 Recurring (non-cash) 1,641 1,024 Non recurring 1,367 838 Total 3,008 1,862 Recurring: increase in share options charge Non-recurring: increase in deferred consideration estimate, and integration costs 23

  24. Slide 24: Profit before tax

    FINANCIAL APPENDICES Profit before tax 6 months to 6 months to 31 Oct 2014 31 Oct 2013 Underlying operating profit 4,146 4,095 Highlighted items (3,008) (1,862) Reporting operating profit 1,138 2,233 Net finance costs/associates (561) (532) Reported profit before tax 577 1,701 Underlying profit befo

  25. Slide 25: Outstanding deferred consideration

    FINANCIAL APPENDICES Outstanding deferred consideration As at 31 October 2014 2013/14 2014/15 Stratigent CMCG Billetts America Nature of business Multi-channel analytics in the US Media auditing in China Media auditing in the US Operations Chicago Shanghai and Beijing New York Transaction date 19 Au

  26. Slide 26: Statement of financial position

    FINANCIAL APPENDICES Statement of financial position October 2014 October 2013 April 2014 Non current assets Goodwill 55,418 51,493 55,121 Purchased intangibles 11,756 12,103 12,659 Other 7,086 5,436 6,393 74,260 69,032 74,173 Current assets Trade debtors 12,376 12,509 15,683 Accrued income 7,847 5,

  27. Slide 27: Cash flow statement

    FINANCIAL APPENDICES Cash flow statement 6m to 31 October 2014 6m to 31 October 2013 12m to 30 April 2014 Cash generated from operations 1,980 1,871 6,799 Net finance expense (791) (436) (841) Income taxes paid (1,129) (114) (1,159) Net cash from operating activities 60 1,321 4,799 Investing activit

  28. Slide 28: Summary of banking facility

    FINANCIAL APPENDICES Summary of banking facility • £40m multi-currency facility in place, maturing in July 2018 • Accordion option to increase by a further £20m • Approx £36.1m drawn; £35.4m outstanding • Approx £4.0m available • Interest rate of 2.5% plus LIBOR (can be lowered depending on covenant

  29. Slide 29: Cash and net debt analysis

    FINANCIAL APPENDICES Cash and net debt analysis Cash Gross debt Net debt Opening at 1 May 2014 6,521 (29,321) (22,800) Trading cash flow 1,980 - 1,980 Interest and tax (1,920) - (1,920) Debt repayments incl refi (29,857) 29,857 - Drawdown for acquisitions and refi 36,057 (36,057) - Payments for acqu

  30. Slide 30: Cash conversion

    FINANCIAL APPENDICES Cash conversion 6m to 31 October 2014 6m to 31 October 2013 Reported cash from operations 1,980 1,871 Underlying cash from operations 3,768 2,520 Underlying operating profit 4,146 4,095 Cash conversion 91% 62% 30

  31. Slide 31: Shareholder analysis at October 2014

    FINANCIAL APPENDICES Shareholder analysis at 31 October 2014 Name Holding % Holding Name Holding % Holding Options Artemis 7,899,430 10.46% Michael Greenlees1 230,000 0.30% 3,741,368 Kabouter 7,078,199 9.38% Nick Manning 230,000 0.30% 2,370,230 JO Hambro 6,361,000 8.43% Andrew Beach2 209,476 0.28% 3

  32. Slide 32: 5. Market and Capabilities

    5. MARKET AND CAPABILITIES

  33. Slide 33: Our market

    MARKET AND CAPABILITIES Our market Increasing availability of data, changing marketing into a science The analysis of data helps businesses improve their performance and profitability We estimate the data analytics market to be worth $100 billion by 2018 Research now indicates that data and data ana

  34. Slide 34: Ebiquity's unique position

    MARKET AND CAPABILITIES Ebiquity’s unique position Fully independent, transparent and objective Unique data sources in media buying and competitive insights Global platform with in-market capability Agnostic approach to technology partners Work with 90 of the top 100 brands Long term client relation

  35. Slide 35: Unique insights delivered via proprietary platform to multi applications

    MARKET AND CAPABILITIES Unique insights delivered via proprietary platform to multi applications 35

  36. Slide 36: Business crucial information delivers improved performance

    MARKET AND CAPABILITIES Business crucial information delivers improved performance Coherent view of business performance, key drivers, key issues and upcoming activity aimed at both a marketing and executive audience 36

  37. Slide 37: Recent performance

    MARKET AND CAPABILITIES Recent performance 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Actual Actual Actual Actual Actual Numis Result Result Result Result Result forecast Revenue 21,218 44,165 52,919 64,046 68,452 72,021 growth 15% 108% 20% 21% 7% 5% Op profit 2,643 5,298 8,205 10,441 11,339 12

  38. Slide 38: Cross-selling analysis

    MARKET AND CAPABILITIES 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 adver

  39. Slide 39: ebiquity.com

    ® ebiquity.com @ blog.ebiquity.com y @ebiquityglobal m™] enquiries@ebiquity.com Data-driven in “as

Ebiquity — H1 2015 Earnings Presentation on 6ix