Slide 1: Company Presentation
Company Presentation Incorporating interim results for the 6 months ended 31 October 2013 January 2014 an Ebiquity company
Slide 2: Key events
Key events New organisational structure marks beginning of exciting stage of growth • Completed Strategic Review • Restructured business into three clear business segments • Media Value Measurement (MVM) • Market Intelligence (MI) • Marketing Performance Optimization (MPO) • Business in strong posit
Slide 3: Financial highlights
Financial highlights • Total revenue up 7% to £32.7m (2012: £30.5m) with organic revenue up 4% • Total underlying operating profit up 26% to £4.1m (2012: £3.2m) • Underlying profit before tax of £3.6m (2012: £2.7m) and reported profit before tax of £1.7m (2012: £1.2m) • Underlying diluted EPS increa
Slide 4: Recent performance
Recent performance 2009/10 2010/11 2011/12 2012/13 2013/14 Actual Actual Actual Actual Forecast¹ Revenue 21,218 44,165 52,919 64,046 67,300 growth 15% 108% 20% 21% 5% Op profit 2,643 5,298 8,205 10,441 11,300 margin 12.5% 12.0% 15.5% 16.3% 16.8% EPS 5.6p 6.0p 7.4p 9.0p 9.5p ¹ Numis forecast, 24 July
Slide 5: Ebiquity's market
Ebiquity’s market The advertising and marketing industry is becoming increasingly consolidated and globalised Advertisers are under increased pressure to demonstrate marketing spend ROI Marketing and media channels have proliferated even further Consumer data available to brands has dramatically inc
Slide 6: Key features and benefits of Ebiquity's offering
Key features and benefits of Ebiquity’s offering 1. Must-have data Advanced Analytics 2. Advanced analytics 3. Independent insight Independent Insight •Proprietary media buying data •Media buying measurement, •Unique independent positioning pool benchmarking and ROI outside agency workflow •Market l
Slide 7: Global presence and expertise
Global presence and expertise • 800 people worldwide • Operate from 17 global offices plus an extensive partner and ‘franchise’ network • Working with over 1,200 clients across multiple sectors including over 90 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chicago (US), Hamb
Slide 8: New business structure
New business structure • Audits of media planning and buying across 25 markets • Monitors marketing and advertising content and worldwide activity across the full range of media • Tracking of agency guarantees and invoices • Aggregated international advertising and social media analytics across 70 m
Slide 9: Blue chip customer relationships
Blue chip customer relationships • Ebiquity works with market Retail Financial services Pharmaceuticals, toiletries leading multinational brands and cosmetics • Ebiquity’s expertise in core verticals such as retail and TMT give clients a tailored, high quality service Automotive Other • Ebiquity con
Slide 10: Ebiquity proprietary reports
Ebiquity proprietary reports Dashboard reporting Customized for each client Secure Tablet compatible 10
Slide 11: Media Value Measurement
Media Value Measurement 50% of total revenue 11
Slide 12: Media Value Measurement
Media Value Measurement 1. Unique database 2. Independence • Deepest and most comprehensive • Clients desire for objectivity database in the market • Unique ability to hold agencies to • Very hard for any competitor to account replicate 5. Stickiness of contracts 3. Technology plus • Benchmarking cl
Slide 13: Media Benchmarking – The Rack
Media Benchmarking – The Rack© 13
Slide 14: Value Track – Performance Guarantees
Value Track© – Performance Guarantees 14
Slide 15: Market Intelligence
Market Intelligence 43% of total revenue 15
Slide 16: Market Intelligence
Market Intelligence 1. Insight 2. Portfolio In depth bespoke Subscription research projects platform that that give clients an provides 'deep- impartial dive' advertising conclusion on the analytics in the UK, performance of Germany and their marketing Australia 3. Portfolio International and Portfo
Slide 17: Portfolio - UK, Germany and Australia Competitive Monitoring
Portfolio© - UK, Germany and Australia Competitive Monitoring 17
Slide 18: Portfolio Plus - International Competitive Monitoring
Portfolio Plus© - International Competitive Monitoring 18
Slide 19: Sonar - Brand sentiment dashboard
Sonar© - Brand sentiment dashboard 19
Slide 20: Marketing Performance Optimization
Marketing Performance Optimization 7% of total revenue 20
Slide 21: Background
Background “Big data are daunting… The guidelines for chief executives, on the other hand, are relatively straightforward: verify, purify, simplify” FT: 12th November, 2012 21
Slide 22: High certainty of outcome
High certainty of outcome Data-informed decisions Benchmark Performance Set KPI’s Determine key business drivers Test impact of options/choices Understand their interconnectivity Limit number of variables Landscape the market Judgment-based decisions Low certainty of outcome 22
Slide 23: Marketing Performance Optimization
Marketing Performance Optimization Helps brand owners predict how their business will perform by optimizing media choices Measurement Measure the profit effectiveness of our clients’ marketing and Modelling advertising activity Statistical models calculate the effect of many different variables Anal
Slide 24: Monthly Insight KPI Dashboard
Monthly Insight KPI Dashboard In-depth Overview And Commentary Commentary 24
Slide 25: Acquisitions dashboard example
ACQUISITIONS | CURR 6.3k A slow start to 2013 but the green shoots are appearing We start 2013 in an uncertain place. Externally the full implications of the Gender Directive are yet to be fully understood. The market remains incredibly competitive; PCW spend is increasing whilst both home and motor
Slide 26: Interim Results
Interim Results 6 months ended 31 October 2013 26
Slide 27: Revenue
Revenue Year on year growth of 7% 2013 2012 Revenue £32.7m £30.5m • Total revenue up 7% • Total organic revenue increase of 4% • Organic MVM growth of 8% - now 50% of total revenue • Organic MPO growth of 77% - now 7% of total revenue 27
Slide 28: Revenue and client analysis
Revenue and client analysis As at 31 October 2013 84% 98% Percentage of revenue from Renewal rate renewable contracts (by value) 1,200+ clients 78% 14% Percentage of revenue from Percentage of clients international sources¹ taking 2+ services ¹International sources defined as multi-territory or non-
Slide 29: Underlying operating profit
Underlying operating profit Year on year growth of 26% 2013 2012 Op profit £4.1m £3.2m Margin 12.5% 10.6% • Total operating profit up 26% • 7% organic increase in operating profit • Margin increase driven by operational gearing • EBITDA margins up from 12.7% to 14.7% 29
Slide 30: Highlighted items
Highlighted items Increase in non-recurring costs 2013 2012 Recurring (non-cash) £1.0m £1.2m Non-recurring (cash) £0.8m £0.4m Total £1.8m £1.5m • Recurring: Reduction in amortisation of purchased intangibles • Non-recurring: Increase in integration and property costs 30
Slide 31: Profit before tax and EPS
Profit before tax and EPS Strong growth in profit and earnings 2013 2012 Underlying operating profit 26% 4,095 3,243 Highlighted items (1,862) (1,545) Reporting operating profit 32% 2,233 1,698 Net finance costs/associates (532) (528) Reported profit before tax 45% 1,701 1,170 Underlying profit befo
Slide 32: Cash generation
Cash generation Significant improvement in cash generation 2013 2012 Cash from operations £1.9m £0.4m Underlying cash from ops¹ £2.5m £1.2m Cash conversion² 62% 38% • Significant improvement in cash generation • Significant improvement in cash conversion (H1 seasonally lower than H2) ¹excluding the
Slide 33: Net debt analysis
Net debt analysis Comfortable level of debt funding 20 £6.1m £20.7m 15 £0.6m £0.4m £15.5m £1.9m Net debt 10 £m 5 0 Gross debt (22,636) (27,287) Cash 7,109 6,635 Net debt (15,527) (20,652) Gross debt/EBITDA¹ 1.9 2.1 Net debt/EBITDA¹ 1.3 1.6 33 ¹EBITDA based on 12m historic pro forma
Slide 34: Interim financial highlights
Interim financial highlights Strong year on year growth Revenue • Up 7% to £32.7m Operating • Up 26% to £4.1m profit Margins • Op profit mgn up to 12.5% Earnings • U/l dil EPS up 18% to 3.1p 34
Slide 35: Outlook
Outlook 2013/14 full year and beyond 35
Slide 36: Outlook
Outlook 1. Market dynamics continue to favour Ebiquity’s growth strategy 2. New structure will enable greater focus on growth markets 3. Continued emphasis on software to enable margin growth 4. Economic climate building greater customer confidence 5. Strong pipeline 6. Future prospects encouraging
Slide 37: Appendices
Appendices 6 months ended 31 October 2013 37
Slide 38: Appendix: Year on year revenue analysis
Appendix: Year on year revenue analysis Organic Acquisitions Total Six months ended 31 October 2012 29,935 567² 30,502 Prior period disposals (121) - (121) Six months ended 31 October 2012 pro forma 29,814 567 30,381 Organic revenue increase 1,098¹ - 1,098 Full year impact of prior period acquisitio
Slide 39: Appendix: Segmental reporting
Appendix: Segmental reporting 6m to October 2013 Media Value Market Marketing Reportable Unallocated Total Measurement Intelligence Performance Segments Optimization Revenue 16,501 13,889 2,290 32,680 - 32,680 Operating profit before highlighted items 3,745 2,477 999 7,221 (3,126) 4,095 6m to Octobe
Slide 40: Appendix: Old format segmental reporting
Appendix: Old format segmental reporting Disclosed for comparison purposes only 6m to October 2013 Analytics Platform Reportable Unallocated Total Segments Revenue 21,084 11,596 32,680 - 32,680 Operating profit before 4,840 2,381 7,221 (3,126) 4,095 highlighted items 6m to October 2012 Analytics Pla
Slide 41: Appendix: Renewals analysis
Appendix: Renewals analysis % renewable % renewal revenue rate (value) MVM 98% 100% MI 78% 90% Total 84% 96% <20% of MPO is renewable
Slide 42: Appendix: Cross-selling analysis
Appendix: Cross-selling analysis 2010/11 2011/12 2012/13 Total group 2 services 10% 13% 11% 3 services 1% 1% 3% 2+ services 11% 14% 14% Top 100 global advertisers 84 of the 100 89 of the 100 91 of the 100 2 services 46% 54% 39% 3 services 4% 3% 25% 4 services 0% 1% 4% 2+ services 50% 58% 68% Strong
Slide 43: Appendix: Outstanding deferred consideration as at October 2013
Appendix: Outstanding deferred consideration as at 31 October 2013 Previous financial years (11/12 and 12/13) 2013/14 Joined Up Media Firm Stratigent Company Decisions Nature of business Media analytics Media cost Multi-channel analytics in Russia/CEE auditing globally in the US Operations Moscow, L
Slide 44: Appendix: Statement of financial position
Appendix: Statement of financial position October 2013 October 2012 April 2013 Non current assets Goodwill 51,493 47,589 47,864 Purchased intangibles 12,103 12,759 11,970 Other 5,436 4,549 5,018 69,032 64,897 64,852 Current assets Trade debtors 12,509 13,773 13,890 Accrued income 5,611 4,773 6,014 C
Slide 45: Appendix: Cash flow statement
Appendix: Cash flow statement 6m to 6m to 12m to 31 October 2013 31 October 2012 30 April 2013 Cash generated from operations 1,871 412 7,526 Finance expense (441) (295) (714) Income taxes paid (114) (322) (1,582) Net cash from operating activities 1,316 (205) 5,230 Investing activities Acq’n of sub
Slide 46: Appendix: Summary of banking facility
Appendix: Summary of banking facility • £36m multi-currency facility in place, maturing in March 2016 • Approx £32.5m drawn (£27.3m outstanding) • Approx £3.7m available • Interest rate of 2.75% plus LIBOR (can be lowered depending on covenants) • Analysis of repayment plan on outstanding balance se
Slide 47: Appendix: Cash and net debt analysis
Appendix: Cash and net debt analysis Cash Gross debt Net debt Opening at 1 May 2013 7,109 (22,636) (15,527) Trading cash flow 1,871 - 1,871 Interest and tax (550) - (550) Debt repayments (2,378) 2,378 - Drawdown for acquisitions 7,037 (7,037) - Payments for acquisitions (6,087) - (6,087) Capex (603)
Slide 48: Appendix: Shareholder analysis
Appendix: Shareholder analysis Name Amount % Holding VSS 15,109,549 24.98% Sarah Jane Thomson (Director) 7,603,787 12.57% Artemis Investment Management 6,674,430 11.04% Kabouter Management 6,578,199 10.88% Herald Investment Management 3,916,125 6.48% Blackrock 3,365,132 5.56% Other Directors Paul Ad