Ebiquity PLC · LSE:EBQ
Ebiquity — H1 2013 Earnings Presentation
36 slides from Ebiquity's earnings presentation, January 2013
Slide 1: Interim Results Presentation, 6 months ended 31 October 2012
Interim Results Presentation 6 months ended 31 October 2012 January 2013 an Ebiquity company
Slide 2: Interim review
Interim review 6 months ended 31 October 2012
Slide 3: Strong year on year performance
Strong year on year performance Revenue growth Total revenue of £30.5m up 27% Operating profit growth Total operating profit of £3.2m up 29% Margin and earnings growth Operating margin up from 10.5% to 10.6% Underlying diluted EPS up 11% to 2.6p All profit and margin numbers are underlying (before h
Slide 4: 2012/13 first half highlights
2012/13 first half highlights 1. Integration of Fairbrother Lenz Eley 2. Acquisition of FirmDecisions 3. Continuing growth in international business with increased scope and size of client contracts – 77% of revenue is international* 4. Very strong renewals – Analytics 98%, Platform 96% 5. Developme
Slide 5: Our vision
Our vision To become the largest and most respected global provider of data- driven actionable insights to the marketing and media community 5
Slide 6: Leading an evolving sector
Leading an evolving sector Increasing worldwide demand for independent marketing performance measurement • Media fragmentation and • Measurement, benchmarking, complexity validation and ROI analysis of media buying performance • Convergence of paid and earned media (social media) • Consumer insight,
Slide 7: What we do
What we do • Provide independent data-driven insights to the global media and marketing community to continuously improve clients' business performance • Help clients continuously improve their efficiency and effectiveness • Help the marketing communications community make better decisions • Help br
Slide 8: Transformational acquisitions
Transformational acquisitions • 1 March 2010 – Acquisition of 82.5% of Excellence Media, a French media consultancy • 13 April 2010 – Acquisition of Xtreme Information (global) and Thomson Media Control (Germany) • 1 May 2010 – Took control of Billetts Germany, our minority interest in a German medi
Slide 9: International presence
International presence Russia UK&IR G’many France USA Spain Italy S’pore Australia/ Ebiquity offices 17 Offices in 9 Countries 3 Flagships: UK, US and Germany 9
Slide 10: Ebiquity today
Ebiquity today Data-driven insights • 800 people worldwide • Operate from 17 global offices plus an extensive partner and ‘franchise’ network • Working with over 1,100 clients across multiple sectors including 87 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chicago (US), Bad
Slide 11: Analytics Division
Analytics Division Improving media and marketing performance How effective is my promotional activity? Am I getting the best media buy? How can I better plan my media? Am I getting good value? How much should I invest in digital? How do I optimise my global investment? What’s my real return on media
Slide 12: Platform Division
Platform Division Providing business sensitive insights to our clients What’s happening in developing markets? What product claims are my competition using? What new products have been launched? Where are my ads being seen? Am I price competitive? Who’s saying what about my brand in social media? Ho
Slide 13: Uniquely placed to help our clients
Uniquely placed to help our clients • Proprietary media data Unique media data pool… pool, likely market leading wherever we operate • International footprint • Sophisticated online Media data delivery platform pool …directly linked to key business KPIs • On-demand insight and analysis • Ability to
Slide 14: New Initiatives: Vital Signs
New Initiatives: Vital Signs Vital Signs will aggregate data points provided by every segment of Ebiquity’s business to enable clients to clearly understand how their marketing activities impact their business KPIs and facilitate simple communication of these insights Key business drivers The window
Slide 15: Ebiquity's business model
Ebiquity’s business model International business with global client base High recurring revenues Growing scope and contract sizes Online platform business is highly scalable Experienced management team Strong and increasing margins ‘Must have’ for some of the largest global advertisers Large and gro
Slide 16: Financial Summary
Financial Summary 6 months ended 31 October 2012 16
Slide 17: Revenue
Revenue Six months ended 31 October 2012 2011 2012 Revenue £24.0m £30.5m • Total revenue up 27% • £6.6m positive impact of acquisitions • 2% organic revenue increase* • 59% of revenue from Analytics (2011: 48%) * on a constant currency basis 17
Slide 18: Year on year acquisitions analysis
Year on year acquisitions analysis Impact of current and prior year acquisitions £k Echo: 20 May 2011 Echo: 20 May 2011 Echo: 20 May 2011 Russia (JUMC): 28 May 2011 Russia (JUMC): 28 May 2011 Russia (JUMC): 28 May 2011 Australia (FMM): 14 Oct 2011 Australia (FMM): 14 Oct 2011 Australia (FMM): 14 Oct
Slide 19: Revenue analysis
Revenue analysis As at 31 October 2012 85% 77% Percentage of revenue from Percentage of revenue from renewable contracts international sources* Revenue 37% 14% Percentage of clients taking Percentage of clients taking multi-territory services 2+ services * International sources defined as multi-terr
Slide 20: Client analysis
Client analysis As at 31 October 2012 £29k £185k Average revenue from Average revenue from clients taking 1 service clients taking 2 services 1,100 clients <4% 17% Percentage of total revenue Percentage of total revenue from our single largest client from our 10 largest clients 20
Slide 21: Renewals analysis
Renewals analysis Six months ended 31 October 2012 % renewable % renewal revenue rate* Analytics 82% 98% Platform 90% 96% Total 85% 97% 21 * by value
Slide 22: Gross Margins
Gross Margins Short term negative impact of recent acquisitions on Analytics Division 2011 2012 Analytics 50% 47% Platform 61% 61% Total gross margin of 53% based on gross profit of £16,049k (2011: £13,404k) 22
Slide 23: Underlying operating profit
Underlying operating profit Six months ended 31 October 2012 2011 2012 Op profit £2.5m £3.2m Margin 10.5% 10.6% • Total operating profit up 29% • £1.0m positive impact of acquisitions • £0.3m increase in central costs to service larger group 23
Slide 24: Highlighted items – administration expenses
Highlighted items – administration expenses No integration costs in the period and reduced acquisition costs £k £2,014k £1,545k 24
Slide 25: Profit before tax and EPS
Profit before tax and EPS Strong growth in underlying profit and EPS 6m ended 6m ended 31 October 31 October 2011 2012 Underlying operating result 2,513 +29% 3,243 Highlighted items (2,014) (1,545) Reported operating result 499 +240% 1,698 Net finance costs/associates (300) (528) Reported result bef
Slide 26: Financing analysis
Financing analysis Comfortable level of debt funding 20,000 £1,133k £1,750k 17,500 15,000 12,500 Gross debt 10,000 £k £18,353k £18,970k 7,500 5,000 2,500 0 1 May 2012 Drawings Repayments 31 October 2012 Gross debt 18,353 18,970 Cash 6,190 4,335 Net debt 12,163 14,635 Gross debt/EBITDA¹ 1.7 1.7 Net d
Slide 27: Financial highlights
Financial highlights Strong year on year growth Revenue • Total revenue up 27% to £30.5m Operating • Total operating profit up 29% to £3.2m profit Margins • Operating margin up to 10.6% Earnings • Diluted EPS up 11% to 2.6p All profit and margin numbers are underlying (before highlighted items) 27
Slide 28: Outlook
Change sub heading - via *View* / HEADER & FOOTER Outlook Remainder of 2012/13 and beyond 28
Slide 29: Outlook
Outlook Ebiquity is well positioned for growth despite the wider economic problems • Subscription based business model • High renewal rates • Exciting new product launches • Strong and visible contracted pipeline • Expansive geographic coverage in developed and emerging markets 29
Slide 30: Appendices
Appendices 6 months ended 31 October 2012 30
Slide 31: Appendix: Acquisitions summary as at 31 October 2012
Appendix: Acquisitions summary as at 31 October 2012 Previous financial year (11/12) Current period Echo Research Group Joined Up Media Faulkner Media Fairbrother Firm Company Management Lenz Eley Decisions Nature of business Reputation management Media analytics Media analytics Media analytics Medi
Slide 32: Appendix: Statement of financial position
Appendix: Statement of financial position October 2012 October 2011 April 2012 Non current assets Goodwill 47,589 37,710 43,291 Purchased intangibles 12,759 10,104 11,864 Other 4,549 4,375 4,520 64,897 52,189 59,675 Current assets Trade debtors 13,773 8,107 13,818 Accrued income 4,773 3,510 4,447 Ca
Slide 33: Appendix: Cash flow statement
Appendix: Cash flow statement 6m to 6m to 12m to 31 October 2012 31 October 2011 30 April 2012 Cash generated from operations 412 15 2,493 Finance expense (295) (293) (527) Income taxes paid (322) (228) (792) Net cash from operating activities (205) (506) 1,174 Investing activities Acq’n of subsidia
Slide 34: Appendix: Summary of banking facility
Appendix: Summary of banking facility In place from March 2012 on 4 year term • £30m multi-currency facility • Approx £21m drawn (£19m outstanding) • Approx £9m available • Interest rate of 2.75% plus LIBOR (can be lowered from March 2013 depending on covenants) • Analysis of repayment plan on outst
Slide 35: Experienced management team
Experienced management team Michael Greenlees Paul Adams CEO Managing Director, Operations Michael was one of the original-founding partners of Gold Greenlees Trott A graduate in Computation from the University of Manchester Institute of which, from its launch in 1980, grew to become one of the grea
Slide 36: Shareholders
Shareholders Name Amount % Holding VSS 15,109,549 25.31 Sarah Jane Thomson (Director) 7,603,787 12.74 Kabouter Management 5,983,072 10.02 Artemis Investment Management 5,444,900 9.12 BlackRock 4,311,729 7.22 Herald Investment Management 3,916,125 6.56 Other directors Paul Adams 1,308,804 2.19 Nick M