Slide 1: Company Presentation: Year Ended 30 April 2015
COMPANY PRESENTATION YEAR ENDED 30 APRIL 2015 July 2015
Slide 2: Contents
COMPANY PRESENTATION Contents 1 Review of the year 4 The future of MPO 2 Financial review 5 Financial appendices 3 Outlook 6 Market and capabilities 2
Slide 3: 1. Review of the Year
1. REVIEW OF THE YEAR
Slide 4: Unique end to end capabilities
REVIEW OF THE YEAR 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 co
Slide 5: Global presence and expertise
REVIEW OF THE YEAR Global presence and expertise • Over 850 people worldwide • Operating from 20 global offices plus an extensive partner network • Working with over 1,100 clients across multiple sectors including over 85 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chicago
Slide 6: Financial highlights excl currency impact
REVIEW OF THE YEAR Financial highlights excl currency impact Total revenue up 11% Like for like revenue up 8% Underlying operating profit up 12% Underlying PBT up 14% Underlying EPS up 14% 6
Slide 7: Key events in the year
REVIEW OF THE YEAR Key events in the year Continued demand for MVM and MPO services Acquisition of Media Value in Spain and Portugal Continual improvement in Portfolio platform (MI) Significant management appointments across the Group Two new Non-Executive Directors Announcement of maiden dividend 7
Slide 8: 2. Financial Review
2. FINANCIAL REVIEW
Slide 9: 3% foreign exchange impact on revenue
FINANCIAL REVIEW 3% foreign exchange impact on revenue Euro £1.5m negative 28% impact on revenue 2015 fx rate 1.288 2014 fx rate 1.188 US Dollar Revenue £0.3m negative GBP 37% by currency 24% impact on revenue 2015 fx rate 1.598 2014 fx rate 1.601 Aus Dollar £0.4m negative 7% impact on revenue 2015
Slide 10: Revenue analysis
FINANCIAL REVIEW Revenue analysis 2014 reported £68.5m 2015 reported £73.9m 2015 c/currency £76.3m Total growth 8% Total growth constant currency 11% Like for like (“LFL”) constant currency 8% 10 Constant currency: current year foreign currency denominated results restated at last year’s foreign exc
Slide 11: Revenue by segment
FINANCIAL REVIEW Revenue by segment MVM £40.0m 54% LFL constant currency up 11% Total up 10% MI £25.8m £73.9m 35% LFL constant currency down 3% Total down 5% MPO £8.1m 11% LFL constant currency up 42% Total up 67% 11
Slide 12: Client analysis
FINANCIAL REVIEW Client analysis Revenue from Renewal 83% renewable contracts 94% rate (by value) Revenue from Clients taking 78% international sources 17% 2+ services 12 International sources defined as multi-territory or non-UK domestic
Slide 13: Underlying operating profit and margin
FINANCIAL REVIEW Underlying operating profit and margin Operating profit Margin £11.3m 2014 reported 16.6% £11.7m 2015 reported 15.9% £12.7m 2015 c/currency 16.7% Total growth 3% Total growth constant currency 12% Like for like constant currency 10% 13 £1.0m negative fx impact (H1: £0.6m): Euro £0.6
Slide 14: Underlying diluted EPS analysis
FINANCIAL REVIEW Underlying diluted EPS analysis 2014 reported 10.1p 2015 reported 10.7p 2015 c/currency 11.6p 6% increase 14% increase at constant currency 14
Slide 15: Balance Sheet and working capital
FINANCIAL REVIEW Balance Sheet and working capital Strong Balance Sheet Improved cashflow Net current assets up 138% Cash from operations up 17% to £10.0m to £7.9m Total net assets up 9% Underlying cash conversion to £48.7m up from 77% to 88% Comfortable gearing Improved working capital Net debt up
Slide 16: Net debt analysis
FINANCIAL REVIEW Net debt analysis £35,000 AMOUNT £’000s £30,000 • Net debt April 2015 of £26.7m (Apr 2014: £22.8m) £25,000 • Net debt:EBITDA (pro forma) of 1.93x £20,000 • £5.9m drawn in the period for acquisitions £15,000 • £3.5m undrawn at April 2015 £10,000 • £20m accordion facility also availab
Slide 17: Year end change
FINANCIAL REVIEW Year end change March and April are our busiest periods for new business and contract renewals Year end visibility to April usually limited until late in the financial year Year end to change to December Will result in earlier certainty of year end outturn Should allow for clearer a
Slide 18: Year end change reporting timetable
FINANCIAL REVIEW Year end change reporting timetable Pre close Results 6 months to Oct 2015 Nov 2015 Jan 2016 8 months to Dec 2015¹ Jan 2016 Mar 2016 6 months to June 2016 July 2016 Sept 2016 12 months to Dec 2016 Jan 2017 Mar 2017 ¹ Pro forma results for the 12 months to December 2015 vs 12 months
Slide 19: Maiden dividend
FINANCIAL REVIEW Maiden dividend Announcement of dividend reflects our confidence in future performance Intend to have a progressive annual dividend Modest 0.4p/share maiden dividend proposed (cash cost approx £0.3m) Takes into consideration our current gearing Allows us to continue with our ambitio
Slide 20: Financial highlights excl currency impact
FINANCIAL REVIEW Financial highlights excl currency impact Revenue EPS +11% £73.9m +14% 10.7p Operating Operating +12% profit £11.7m +0.1pp mgn 15.9% 20 Percentages reflect constant currency growth rates. Results reflect reported rates
Slide 21: 3. Outlook
3. OUTLOOK
Slide 22: 2015/16 and beyond
OUTLOOK 2015/16 and beyond Increasing momentum behind ‘big data’ analytics Strong growth in key segments (MPO and MVM) MI expected to show signs of stabilisation with new initiatives Market trends and strong pipeline bode well for future First dividend payment sign of growing confidence 22
Slide 23: 4. The Future of MPO
4. THE FUTURE OF MPO A, TON. yy i! ebiquily
Slide 24: Helping brands understand what's working
THE FUTURE OF MPO Helping brands understand what’s working 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 analytic
Slide 25: The need to track and understand consumer behaviour
THE FUTURE OF MPO The need to track and understand consumer behaviour Visit Interact Mall with rich Upload media ad Send info pic to VISIT to mobile social STORE media RESEARCH See PRODUCT marketing BUY VISIT PRODUCT Earn DATA Rewards Receive WEBSITE recomm- endation Check Reviews Discuss Customise
Slide 26: The customer journey
THE FUTURE OF MPO The customer journey Market influence and drivers Demand Marketing Performance Market Optimization Conversion Analytics Engagement Marketing Performance Measurements Improved marketing Predict future marketing performance performance Relationship/loyalty/ 26 advocacy
Slide 27: CMO's biggest challenges
THE FUTURE OF MPO CMO’s biggest challenges Most challenging Ranking scale Least challenging x 1 2 3 4 5 6 7 8 9 10 11 12 13 Managing the explosion in consumer data 3.3 60 56 46 19 8 6 4 7 2 6 3 7 0 Analyzing & exploiting data to automate/personalize marcoms 3.8 15 39 76 38 20 9 10 8 5 0 1 2 1 Exploi
Slide 28: The explosion of marketing technology
THE FUTURE OF MPO The explosion of marketing technology “We expect technology spend by CMO’s to increase 10x in 10 years From $12 billion to $120 billion, unlocking a huge opportunity for marketing technology companies and opening the door to a Decade of the CMO” Foundation Capital, 2015 28
Slide 29: But which technology and how?
THE FUTURE OF MPO But which technology and how? 29
Slide 30: Rapid growth in research-led consulting
THE FUTURE OF MPO Rapid growth in research-led consulting Media Value Measurement Marketing Analytics Size est: $100m/EBQ 50% Size est: $100bn Market Intelligence Marketing Performance Optimisation (media monitoring) Size est: $500m/EBQ c0.5% Size est: $175m/EBQ c25% 30
Slide 31: We are uniquely positioned to take advantage of this growth
THE FUTURE OF MPO We are uniquely positioned to take advantage of this growth 1. Deep sector understanding 2. Multi brand experience in significant verticals e.g. Automotive, Finance 3. Unique data sets in media spend and advertising activity worldwide 4. Entirely independent 5. Highly regarded for
Slide 32: 5. Financial Appendices
5. FINANCIAL APPENDICES
Slide 33: Segmental reporting
FINANCIAL APPENDICES Segmental reporting April 2015 MVM MI MPO Total segments Central costs Total Revenue 40,046 25,768 8,060 73,874 - 73,874 Underlying operating profit 11,224 3,447 2,905 17,576 (5,847) 11,729 Margin 28.0% 13.4% 36.0% 23.8% 15.9% April 2014 MVM MI MPO Total segments Central costs T
Slide 34: Year on year revenue analysis
FINANCIAL APPENDICES Year on year revenue analysis Organic Acquisitions Total Year ended 30 April 2014 65,738 2,714¹ 68,452 Organic revenue increase 4,156 - 4,156 Foreign exchange impact (2,391) (26) (2,417) Full year impact of prior year acquisitions - 3,193¹ 3,193 Revenue from current year acquisi
Slide 35: Renewals analysis
FINANCIAL APPENDICES Renewals analysis % renewable % renewal rate revenue (value) MVM 98% 94% MI 78% 95% MPO 26% n/a Total 83% 94% 35
Slide 36: Highlighted items
FINANCIAL APPENDICES Highlighted items 30 April 2015 30 April 2014 Recurring (non-cash) 3,385 2,210 Non recurring 2,528 4,517 Total 5,913 6,727 Recurring: increase in share options charge Non-recurring: decrease in acquisition, integration and property costs 36
Slide 37: Profit before tax
FINANCIAL APPENDICES Profit before tax 30 April 2015 30 April 2014 Underlying operating profit 11,729 11,339 Highlighted items (5,913) (6,727) Reporting operating profit 5,816 4,612 Net finance costs/associates (1,159) (1,172) Reported profit before tax 4,657 3,440 Underlying profit before tax 10,57
Slide 38: Underlying effective tax rate
FINANCIAL APPENDICES Underlying effective tax rate 30 April Effective 2015 tax rate Underlying operating profit 11,729 Interest/associates (1,159) Underlying PBT 10,570 CY Corp tax (2,812) 26.6% 28.9% CY Def tax (241) 2.3% Prov’n releases 1,360 (12.9%) Underlying tax charge (1,693) 16.0% Underlying
Slide 39: Outstanding deferred consideration
FINANCIAL APPENDICES Outstanding deferred consideration As at 30 April 2015 2013/14 2014/15 2015/16 Stratigent CMCG Billetts America Media Value Nature of business Multi-channel analytics in the US Media auditing in China Media auditing in the US Media auditing in Spain/Portugal Operations Chicago S
Slide 40: Statement of financial position
FINANCIAL APPENDICES Statement of financial position April 2015 April 2014 Non current assets Goodwill 58,096 55,121 Purchased intangibles 12,243 12,659 Other 7,569 6,393 77,908 74,173 Current assets Trade debtors 17,390 15,683 Accrued income 9,852 8,287 Cash 9,295 6,521 Prepayments 1,716 1,907 Othe
Slide 41: Cash flow statement
FINANCIAL APPENDICES Cash flow statement Year ending 30 April 2015 Year ending 30 April 2014 Cash generated from operations 7,927 6,799 Net finance expense (1,234) (841) Income taxes paid (1,618) (1,159) Net cash from operating activities 5,075 4,799 Investing activities Acquisition of subsidiaries,
Slide 42: Summary of banking facility
FINANCIAL APPENDICES Summary of banking facility • £40m multi-currency facility in place, maturing in July 2018 • Approx £36.7m drawn; £34.6m outstanding • Approx £3.5m available • Accordion option to increase by a further £20m • Interest rate of 2.5% plus LIBOR (can be lowered depending on covenant
Slide 43: 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 7,927 - 7,927 Interest and tax (2,852) - (2,852) Debt repayments incl refi (31,107) 31,107 - Drawdown for acquisitions and refi 36,703 (36,703) - Payments for acqu
Slide 44: Cash conversion
FINANCIAL APPENDICES Cash conversion 30 April 2015 30 April 2014 Reported cash from operations 7,927 6,799 Underlying cash from operations 10,345 8,672 Underlying operating profit 11,729 11,339 Cash conversion 88.2% 76.5% 44
Slide 45: Shareholder analysis at 30 April 2015
FINANCIAL APPENDICES Shareholder analysis at 30 April 2015 Name Holding % Holding Name Holding % Holding Options Artemis 7,808,630 10.2% Michael Greenlees 324,267 0.42% 3,741,368 Kabouter 7,219,801 9.4% Nick Manning 230,000 0.30% 2,370,230 JO Hambro 7,080,000 9.2% Andrew Beach 20,000 0.03% 310,000 T
Slide 46: Recent performance
FINANCIAL APPENDICES Recent performance Year end April 10 April 11 April 12 April 13 April 14 April 15 Revenue 21,218 44,165 52,919 64,046 68,452 73,874 growth 15% 108% 20% 21% 7% 8% Op profit 2,643 5,298 8,205 10,441 11,339 11,729 margin 12.5% 12.0% 15.5% 16.3% 16.6% 15.9% EPS 5.6p 6.0p 7.4p 9.0p 1
Slide 47: Pro forma year ended December 2014
FINANCIAL APPENDICES Pro forma year ended December 2014 H1/H2 split¹ Dec 2014 Revenue MVM 37,838 MI 26,058 MPO 6,660 Total revenue 50%/50% 70,555 Total underlying operating profit 50%/50% 9,321 Underlying PBT 50%/50% 8,171 Underlying diluted EPS 50%/50% 7.49p Net debt 31,563 47 All numbers in £’000s
Slide 48: Cross-selling analysis
FINANCIAL APPENDICES Cross-selling analysis 2010/11 2011/12 2012/13 2013/14 2014/15 2 services 10% 13% 11% 11% 13% 3+ services 1% 1% 3% 4% 4% 2+ services 11% 14% 14% 15% 17% Top 100 global advertisers¹ 84 of the 100 89 of the 100 91 of the 100 90 of the 100 88 of the 100 Over 70% of the 88 clients f
Slide 49: 6. Market and Capabilities
6. MARKET AND CAPABILITIES
Slide 50: 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 & data analy
Slide 51: 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 over 85 of the top 100 brands Long term client rel
Slide 52: Unique end to end capabilities
MARKET AND CAPABILITIES 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 he
Slide 53: Market Intelligence, Media Value Measurement, Marketing Performance Optimization
Market Intelligence Monitoring and insight to provide the competitor intelligence necessary for effective communication planning Media Value Measurement Proprietary tools and services to hold agencies to account and improve transparency and media performance Marketing Performance Optimization Resear
Slide 54: Marketers and corporate communications teams
Questions we help answer for… Marketers and corporate communications teams • How are our competitors’ media or messaging strategies changing, and what can we learn from them? • What are people really saying about our brand online? • How can we protect our brand from misuse by partners or third parti
Slide 55: Media, marketing, and procurement teams
Questions we help answer for… Media, marketing, and procurement teams • How can we improve the value we get from our media spend? • Which is the right agency for us and how do we best reward them? • Are we benefiting from the rebates our agency receives? • How can we measure and optimize our digital
Slide 56: Marketing, insight, analytics and commercial teams
Questions we help answer for… Marketing, insight, analytics and commercial teams • What is the business impact of our marketing investments? • How do consumers and stakeholders feel and act towards our brand? • Is our technology and analytics program delivering optimized results? • How do we make su
Slide 57: Why we're best-placed to answer them
Why we’re best-placed to answer them Comprehensive Advertising Database The largest international advertising database; 20 million creatives spanning all media and 80+ countries Experience Delivery Almost 40 years advertising intelligence experience Tailored delivery via SaaS, workshops, scorecards,
Slide 58: ® ebiquity.com @ blog.ebiquity.com y @ebiquityglobal m™] enquiries@ebiquity.com
® ebiquity.com @ blog.ebiquity.com y @ebiquityglobal m™] enquiries@ebiquity.com Data-driven in “as