System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — FY2006 Earnings Presentation
16 slides from System1's earnings presentation, April 2007
Slide 1: 2006 Preliminary Results
The Quantitative MindReading Agency Presentation 2006 Preliminary Results April 2007 1
Slide 2: About BrainJuicer
About BrainJuicer® A leading international online market research agency Innovative, bespoke software produces insightful research Multinational client base; 10 of world’s top 50 companies Over 80 clients, research in over 50 countries, over 30 languages Online research is a high growth ma
Slide 3: Growth of Market Research
Growth of Market Research Compound growth = 41% 3 Compound growth = 375% 20 2.5 2 15 US$bn US$bn 1.5 10 1 5 0.5 0 0 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 US Online MR Japan + ROW MR Global MR offline Europe Online MR ESOMAR 2005 Industry Report + Inside Research US & European O
Slide 4: BrainJuicer Offering the Best of Both
BrainJuicer Offering the Best of Both… Qualitative Quantitative Consumer habits/attitudes Spontaneous thoughts Consumer Segmentation Creative projections Brand/Market Mapping Free associations Consumer Deep-Dive Idea generation Volume Predictions Robust data & Reasons why Concept testing
Slide 5: BrainJuicer Products
BrainJuicer Products Exploration Screening Evaluation Prediction Launch Tracking Multi-nationals Large Domestics 6
Slide 6: Financials
Financials Revenue increased by 57% to £4.6m (2005: £2.9m) Operating profit (before listing costs) increased to £477k (2005: £2k) Profit after tax (before listing costs) increased to £291k (2005: loss £38k) 5 4 Revenue £m 3 2 1 0 2003 2004 2005 2006 7
Slide 7: Operations
Operations All business units performed well: 172% revenue growth in the Netherlands in 2nd year of operation Continued strong performance in UK Established our business in the US Developed key clients: Awarded global mandate from one of the top 50 companies in the world 85% of 2006 re
Slide 8: Consolidated Income Statement
Consolidated Income Statement 2006 2006 2006 2005 Before Listing Total Listing expenses expenses £’000 £’000 £’000 £’000 Revenue 4,608 - 4,608 2,936 Cost of sales (1,189) - (1,189) (650) Gross profit 3,419 - 3,419 2,286 Administrative expenses (2,942) (354) (3,296) (2,284) Operating profit 477 (354)
Slide 9: Balance Sheet
Balance Sheet 2006 2005 £’000 £’000 ASSETS Non-current assets Property, plant and equipment 78 - Deferred tax asset 213 - 291 - Current assets Inventories 45 13 Trade and other receivables 1,612 788 Cash and cash equivalents 1,233 64 2,890 865 Total assets 3,181 865 EQUITY Capital and reserves attri
Slide 10: Management Team
Management Team CEO CFO John Kearon James Geddes • 20 years experience • 20 years financial • Unilever Research/Mktg management experience • Publicis Planning Director • CFO of IOBox - sold to Telefonica • Founder Brand Genetics • Assistant Treasurer of • E&Y Emerging Fosters Brewing Group Entrepren
Slide 11: Strategy for Growth
Strategy for Growth New Products Geographic expansion Existing Clients 80% 20% New Clients Continued technology improvements 12
Slide 12: BrainJuicer Differentiators
BrainJuicer Differentiators Bespoke software delivering greater diagnostic Multinational insights client base, 10 of top 50 global co’s Innovative Team of talented suite of research professionals products Reputation as and software innovation engineers Offices in 3 leader countries 375% online marke
Slide 13: Appendix
The Quantitative MindReading Agency Appendix Background 14
Slide 14: Market Research Landscape
Market Research Landscape 2005 Regional MR Split 2005 MR Type Split 2005 % MR Category Split Europe N.America Projects Panel Manufacturing Media/Ad Asia Other Continuous Omnibus Public Sector Ultilities/Retail Other Financial Other N.B. ‘BrainJuicer’ logo indicates where the group operates rather th
Slide 15: Market Research Evolution
Market Research Evolution 2000 2006 2010 BrainJuicer Offline Online Estimate US online MR 10% US online MR 33% US online MR >50% EU online MR <1% EU online MR 3% EU online MR >30% Offline Advantages Online Advantages • Representative than online • More representative • Greater tactile capabilities •
Slide 16: Cif Power Cream Case Study
Cif Power Cream Case Study Predictive Markets; unique screening methodology MindReader diagnostics precluded need for focus groups Exploration Concept Optimizer; Diagnostics aided development Successfully launched across Europe 2005 Screening Evaluation Prediction Launch Tracking Predictive