Team Internet Group Plc · LSE:TIG
Team Internet — CentralNic Group — H1 2023 Earnings Presentation
24 slides from Team Internet's earnings presentation, Aug 14, 2023
Slide 1: Investor Presentation
Building a better global digital economy Investor Presentation August 2023 “ Helping Online Consumers make ” informed choices
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. The information contained in this confidential document
Slide 3: CentralNic agenda
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 4: H1 2023 Financial Highlights
H1 2023 Financial Highlights Record Six Month Results Gross Revenue Net Revenue Adjusted1 EBITDA $396.4m +18% $91.2m +11% $44.6m +16% H1 2022: $334.6m H1 2022: $82.1m H1 2022: $38.6m Adjusted EPS Net Debt Adjusted2 Cashflow ¢ 11.37 +34% $68.2m +20% $41.9m -1% H1 2022: : ¢ 8.46 FY 2022: $56.6m H1 202
Slide 5: 31% Group organic revenue growth for LTM H1 2023
31% Group organic revenue growth for LTM H1 2023 Strong value propositions make for strong growth $623m 36% organic growth 2.1 $458m 35.1 15% organic growth 621.4 $171m $148m 1.9 0.7 422.7 147.7 168.8 LTM H1'22 LTM H1'23 LTM H1'22 LTM H1'23 Pro-Forma Adjustment ($, m) Pro-Forma Adjustment ($, m) Rep
Slide 6: Closing in on global market leadership in each of our segments
Closing in on global market leadership in each of our segments 97% CNIC OM as % of 42% 46% 71% 827 System1 Inc 1 688 588 476 314 304 315 198 2020 2021 2022 H1 2023 2 CNIC OM Revenue SYS1 Inc Revenue Online Marketing CNIC OP as % of 55% 59% 64% 77% Tucows Domains 1 242 246 243 134 145 156 119 92 2020
Slide 7: Latest Achievements
Latest Achievements Ongoing focus on projects supporting organic growth Klarna as a direct publisher AI Powered Domain Search Fully onboarded to become a direct Testing complete and soft publisher with Zeropark creating novel launched within IBS with positive opportunities for advertisers with impac
Slide 8: Material Expansion of Share Buyback Programme
Material Expansion of Share Buyback Programme Capital allocation policy geared towards greater shareholder returns • Given the cash generative nature of the business the Board considers the Buyback Programme to be in the best interest of all shareholders • The company has appointed its broker, Zeus
Slide 9: Business profile
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 10: CentralNic is a diversified house of brands
CentralNic is a diversified house of brands Established in 1996
Slide 11: CentralNic holds leading positions in select niche markets
CentralNic holds leading positions in select niche markets, driving great results Leading Google AFD based media buying platform Globally leading domain parking platform #1 product review portal in German-speaking Europe #2 global domain name distribution network Leading Cloud based analytics SaaS f
Slide 12: CentralNic creates a vibrant, symbiotic ecosystem
CentralNic creates a vibrant, symbiotic ecosystem, connecting a vast supply with substantial demand PF LTM H1 ‘23 value flows, Sankey presentation Social Media: 35% Native: 25% Search: 67% Cost of Sale OM: $489m Revenue OM: $623m Search Ads: 7% Total Revenue: $794m Domains: 7% Ecommerce: 6% Alternat
Slide 13: Additional operational and investment-related KPI
Additional operational and investment-related KPI Operational KPI Financial KPI Online Marketing KPIs P/E FCF Yield H1’22 LTM H1’23 LTM Δ 1 2 Visitor Sessions (bn): 3.5 5.3 49% 8.0x 14% RPM ($): 100 100 0% Online Presence KPIs Adjusted EPS Growth Dividend Yield H1’22 LTM H1’23 LTM Δ 3 4 Total domain
Slide 14: Financial results
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 15: Income Statement
Income Statement FY H1 H1 % ($, m) Revenue 2022 728.2 2023 396.4 2022 334.6 Change 18% Revenue up by Cost of Sales Net Revenue (Gross Profit) (550.5) 177.7 (305.2) 91.2 (252.5) 82.1 11% 18% Gross Margin % 24% 23% 25% Adjusted EBITDA up by 16% Operating Expenses (138.4) (71.4) (57.7) 24% Share Based
Slide 16: Balance sheet
Balance sheet FY H1 H1 % ($, m) 2022 2023 2022 Change Non-Current Assets 365.0 353.2 334.2 6% Current Assets 193.6 178.0 189.3 -6% Net debt increased by USD 11.6m Total Assets 558.6 531.2 523.5 1% since December 31st due to: Non-Current Liabilities 194.0 185.8 170.8 9% • The Company returning cash t
Slide 17: Robust cash conversion
Robust cash conversion Cash generation from operations = 94% Cash of Adjusted EBITDA 110% 94% Conversion (%) Testament to strong cash conversion FY H1 H1 Adjusted Cashflow Bridge: 2022 2023 2022 Cashflow from operations 86.0 35.3 38.2 Exceptional costs 7.8 3.2 3.1 86.0 95.0 Settlement of working cap
Slide 18: Generating profits despite non cash items impact
Generating profits despite non cash items impact 1 Overhead to plateau – year on year effects of wage inflation are partially offset by successful Δ H1 2023 implementation of cost reduction initiatives ($,m) H1 2023 H1 2022 – H1 2022 Net revenue (gross profit) 91.2 82.1 9.1 Amortisation relates to M
Slide 19: Strategy and Outlook
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 20: Strategic priority: creating a virtuous circle
Strategic priority: creating a virtuous circle Organic growth Operating leverage • New customer wins • Achieve cost savings in future periods by • Growing existing customers, and cross- continuing our integrations selling our services • We expect operational gearing to • Launching new products and c
Slide 21: Our AI strategy
Our AI strategy is not just about applying technology; it's about reimagining CentralNic as a market leader in a data-driven era CentralNic’s AI Strategy CentralNic has been at the forefront of the industry in terms of integrating AI into the core of our businesses Three Major Pillars • Piloted and
Slide 22: Social Commerce Vision: $80bn TAM according to McKinsey
Social Commerce Vision: $80bn TAM according to McKinsey1 1 Current discrete business models: 2 Incumbents’ vertical integration efforts: Marketplaces, Shop Inspire, Spark [Stream, 1A Future aspirations: Collections, Interesting Finds] Note: (1) “Social commerce: The future of how consumers interact
Slide 23: CentralNic recap
CentralNic recap Helping online consumers make informed choices ▪ A leading global internet solutions company, operating in two highly attractive markets: high-growth digital 5.3bn advertising (Online Marketing segment) and domain name management solutions (Online Presence segment) Online consumer ▪
Slide 24: Thank You
Ce. Thank You @®CentralNic Group PLC