Slide 1: Preliminary Results Presentation, Year Ended 31 December 2019
ebiquity Preliminary Results Presentation Year Ended 31 December 2019 20 May 2020
Slide 2: Highlights
Highlights 2 Annual Results - Year ended 31 December 2019
Slide 3: Highlights: 2019 - a transitional year
HIGHLIGHTS 2019 - a transitional year » Underlying operating profit of £6.2m in line with expectations » Stronger balance sheet: Net debt reduced to £6m from £28m » Group revenue of £69m, 1% lower ; 2% up like-for-like excluding Stratigent » Media revenue up by 1% ; Contract Compliance up 13% » Anal
Slide 4: Highlights: clients added during 2019
HIGHLIGHTS During 2019 we added a number of clients to our roster verizon’ PRG we Ei facebook. BH Microsoft amazon S ea 4 Annual Results -— Year ended 31 December 2019 a deliveroo ISSA ebiquity
Slide 5: COVID-19 - focus on protecting staff and business
HIGHLIGHTS COVID-19 — our focus has been on protecting staff and business Remote working globally from March 2020 in all geographies China & Germany now returning to office Staff have shown admirable resilience and commitment Maintained high quality service delivery to clients Annual Results - Year
Slide 6: Financial Overview
Financial Overview 6 Annual Results - Year ended 31 December 2019
Slide 7: Financial Overview: Headline Results
FINANCIAL OVERVIEW Headline Results Headlines 2019 2018 | Change £m £m £m Revenue 68.7 69.4 (0.6) Underlying Operating Profit 6.2 6.3 (0.2) Underlying Profit before Tax 5.3 5.2 01 Underlying Earnings Per Share (p) 3.6p 3.7p (0.1p) Statutory (Loss) before Tax (5.1) (2.5) (2.6) Statutory Earnings per
Slide 8: Group Income Statement Summary
FINANCIAL OVERVIEW Group Income Statement Summary Income Statement 2019 2018 % Revenue 68.7 69.4 (0.6) (1%) Operating Expenses 62.6 63.0 (0.5) (1%) Operating Profit 6.2 6.3 (0.2) (3%) Operating Margin 9% 9% Finance Costs 09 1.2 (0.3) (22%) Profit before Tax 5.3 5.2 01 2% EPS (p) 3.6p 3.7p (O.1p) (2%
Slide 9: Balance Sheet Summary
FINANCIAL OVERVIEW Balance Sheet Summary Balance Sheet AoW) 2018 » Goodwill and intangibles reduced by £5.8m due to impairment of Stratigent Goodwill 284 34.8 » IFRS 16 adoption: "Right of use” asset of . . £8.3m in non-current assets, £1.8m lease Other intangible assets 6.8 8.5 liability In current
Slide 10: Cash Flow Statement
FINANCIAL OVERVIEW Cash Flow Statement » Cash inflow from operations of £5.7m including highlighted items Cash Flow (includes highlighted items) 2019 2018 » Underlying cash inflow from operations was £8.9m Cash generated from operations 5y/ 7.6 » Investing activities include: Interest and Tax (2.1)
Slide 11: Our financial position remains strong
FINANCIAL OVERVIEW Our financial position remains strong 1 . December December Liquidity ieieil AGA) 2019 2018 Gross Debt (19.0) (14.0) (34.0) Cash Balances 13.2 8.2 6.4 Net Debt (5.8) (5.8) (27.6) Undrawn Facilities 5.0 10.0 = Covenants have been modified to reflect current environment * As modifie
Slide 12: Revenue by segment
FINANCIAL OVERVIEW Revenue by segment » Media includes: o Media Performance & Management fell by 1% o Contract Compliance up by 13% » Analytics & Tech includes: o Advanced Analytics up by 5% o AdTech up by 105% o Digital Balance Australia fell by 15% o Stratigent (USA) fell by 46% - closed in Septem
Slide 13: Operating Profit by segment
FINANCIAL OVERVIEW Operating Profit by segment Operating Profit 2 Change Margin % Operating Profit Media 11.8 121 (0.2) (2%) 22% 22% Analytics and Tech 1.0 1.4 (0.4) (31%) 7% 9% Unallocated costs (6.6) (71) (0.5) 7% Total 6.2 6.3 (0.2) (3%) 9% 9% Underlying figures shown for operating profit ° ° 13
Slide 14: Post-Balance Sheet Investments
FINANCIAL OVERVIEW Post-Balance Sheet Investments Digital Decisions » Digital media and optimisation service » 100% acquired on 8 January 2020 » Initial payment of €700k » Contingent consideration in two stages: o Based on 2020 performance, and o Based on average of 2021 and 2022 performance » Ruben
Slide 15: Strategic Opportunity
Strategic Opportunity 15 Annual Results - Year ended 31 December 2019
Slide 16: Our primary differentiators
STRATEGIC OPPORTUNITY Our primary differentiators: a clear leadership position in core services, reach among top advertisers, data, and our analytics platform Key differentiators Scale & Reach Capabilities ® A market-leading World's Largest Independent V The world's largest pool of analytics platfor
Slide 17: We go to market with three practices
STRATEGIC OPPORTUNITY We go to market with three practices . I I ' e Practices ' Media i Analytics Tech 1 1 ! ! ot ! ! Media Management H i ' . 1 . AdTech ' Services Media Performance ' ' Advanced Analytics MarTech 1 i H Contract Compliance i ' i i ! ot ! Reporting Media Analytics & Tech segments £5
Slide 18: Our services map into all key stages of clients' media lifecycle
STRATEGIC OPPORTUNITY Our services map into all key stages of our clients' media lifecycle . Media . my i Management Management Management Ebiquity fe) AdTech 9 Services Manage & Select Partners Design Future Model Objectives Define & Align Media . Media Performance Performance . Advanced Analytics
Slide 19: Digital Decisions has strengthened our digital media proposition
STRATEGIC OPPORTUNITY : DIGITAL DECISIONS Digital Decisions has strengthened our digital media proposition to the market Adds a new capability Enhances our Reinforces our Synergistic with Common target technical our local network audience capabilities and expertise & markets to our Media Performance
Slide 20: Source data monitoring automates data collection
STRATEGIC OPPORTUNITY : DIGITAL DECISIONS Source data monitoring automates data collection directly from digital platforms Agency A Agenc: plannin gency invoices » Uses automated data exports (e.g. CSV files) » Recommendations, savings, and KPIs directly from media buying platforms logged and tracke
Slide 21: Case Study - Media Management: Nestle
S SY es STRATEGIC OPPORTUNITY : CASE STUDY - MEDIA MANAGEMENT ZN Achieve better outcomes by improving your existing media operations oO b Nestle ee Ebiquity's approach to improving our media operations helped us to save significant time and money, and helped us build a stronger long-term relationshi
Slide 22: Summary
Summary 22 Annual Results - Year ended 31 December 2019
Slide 23: Summary
SUMMARY » 2019 was transitional period following AdIntel sale — foundations strengthened for future development of the business » Business has continued to operate effectively through remote working since Covid-19 pandemic erupted » Covid-19 crisis is affecting our business in current year, but its
Slide 24: Appendix
Appendix 24 Annual Results - Year ended 31 December 2019
Slide 25: Highlighted Items
APPENDIX H ig hlighted Items Highlighted items — Continuing operations Continuing Operations » £5.8m charge for write down of Share based payments = Stratigent's goodwill and intangible » £0.9m charge for write down of goodwill relating to DBA » £0.9 m charge relating to onerous lease provisions inc
Slide 26: We work with global brands across a variety of key sectors
APPENDIX We work with global brands across a variety of key sectors 26 AUTO FMCG Nestlé LOREAL Annual Results -— Year ended 31 December 2019 FINANCE DirectLine Group HSBC «> AMERICAN] [SeRess a UBS RETAIL & QSR deliveroo (Y\ Rlixrc Wickes SMP ES TMT Fj facebook. BE Microsoft