Slide 1: System1 Interim Results
System1 Interim Results 6 months to 30 September 2019 © System1 Group PLC 1
Slide 2: Context
Context • Our vision is to be global no 1 in Advertising Effectiveness • We play in three research markets: Advertising Testing (our core), Brand Tracking & Innovation • We operate in 6 of the largest advertising geographies in the world and have large global clients • We are widely acknowledged as
Slide 3: H1 2019/20 Summary
H1 2019/20 Summary • Gross Profit (main top line indicator) up 7% (4% in constant currency) • Normalised PBT (excluding AdRatings and Share Based Payments) up 26% • AdTesting (core product area) grew 18% • Invested £0.29m on upgrading IT, digitising products and strengthening management team • Margi
Slide 4: Strategic Update
STRATEGIC UPDATE © System1 Group PLC 4
Slide 5: Marketing $1,700bn
Past Performance Marketing Future Performance $1,700bn Advertising $900bn 53% 2% Ad-Testing MR $0.9bn $42bn 7% Innovation $3.1bn © System1 Group PLC 5 6% Brand Tracking
Slide 6: System1: THE Effectiveness Agency
System1: THE Effectiveness Agency MISSION We exist to empower every marketer to create great advertising & prove creativity’s value to their business VISION A world where all advertising is effective & no money is wasted BUSINESS GOAL Make System1 an industry standard & our Creative Guidance Systems
Slide 7: Challenger Strategy with Data-&-Services
Challenger Strategy with Data-&-Services Global Ad-Testing Market • DON’T DO 100% = 0.9bn Fight head to head Change the rules & create THE std. System1; 1% Kantar Play by existing rules Prove Creative Effectiveness & (MWB); 35% Overextend resources Value Win Agency adoption & advocacy Multiple servi
Slide 8: THE Effectiveness Agency: Data & Services Fly-Wheel
THE Effectiveness Agency: Data & Services Fly-Wheel Effectiveness Leadership IPA Fluent Devices, CREATE IP Effectiveness Lemon Effectiveness Validations Partners Ad Agencies, TV & Creative Calculator GROW Stations Client Effectiveness THE Ad/Brand Portals Marketing & Fame- Feeling-Fluency CORE Predi
Slide 9: H1 Financials
H1 FINANCIALS © System1 Group PLC 9
Slide 10: P&L
P&L £m H1 2019/20 H1 2018/19 Consulti Data Total Consulti Data Total ng (AdRatin ng (AdRatin gs) gs) Revenue 13.71 0.02 13.73 13.18 - 13.18 Gross Profit 11.57 0.02 11.59 10.80 - 10.80 Overheads 9.19 - (9.19) (8.90) - (8.90) AdRatings Operating Exp - (1.10) (1.10) - (1.09) (1.09) SBP* and Exceptional
Slide 11: Historic Context
Historic Context Gross Profit (£m) 30 25 20 15 4% increase in Revenue (2% in constant 10 currency) 5 0 7% increase in Gross Profit (4% constant 2013 2014 2015 2016 17/1 18/1 19/2 8 9 0 currency) Normalised Profit Before Tax excluding AdRatings 8 (£m) 26% growth in Normalised PBT (excluding 6 A
Slide 12: Profit and Cost Improvements
Profit and Cost Improvements Overheads up 3% £m Growth Gross Profit 11.59 7% Within Overheads, approx. £0.29m invested Overheads (ex AdRatings) 9.19 3% in IT infrastructure, digitisation of products and strengthening management team Normalised PBT (ex AdRatings) 2.40 26% AdRatings (1.10) -1% N
Slide 13: Cashflow
Cashflow £m H1 2019/20 H1 2018/19 Profit Before Tax (before AdRatings) 2.49 2.15 Tax Paid (0.17) (0.30) Movement in Payables (0.98) (0.72) Movement in Receivables 0.37 (1.41) Other working capital movements, Capex, and non-cash (0.04) 0.24 adjustments Operating Cash Flow pre-financing (pre AdRatings
Slide 14: Summary
SUMMARY © System1 Group PLC 14
Slide 15: H1 2019/20 Summary
H1 2019/20 Summary • Gross Profit (main top line indicator) up 7% (4 % in constant currency) • Normalised PBT (excluding AdRatings and Share Based Payments) up 26% • AdTesting (core product area) grew 18 % • Invested £0.29m on upgrading IT, digitising products and strengthening management team • Mar
Slide 16: End
END © System1 Group PLC 16