COMPANY PRESENTATION YEAR ENDED 30 APRIL 2015 July 2015 COMPANY - PowerPoint PPT Presentation

COMPANY PRESENTATION YEAR ENDED 30 APRIL 2015 July 2015

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

1. REVIEW OF THE YEAR

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 companies improve overall performance 4

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 (US), Baden Baden (Germany) and Sydney (Australia) Nordics Canada UK Poland Russia NL Ger France Japan USA Italy ESP China Greece Turkey Portugal Middle Ebiquity offices East India Mexico SEA Ebiquity-branded franchise LATAM South Africa Aus/NZ Ebiquity partner offices 5

REVIEW OF THE YEAR Financial highlights excl currency impact T otal revenue up 11% Like for like revenue up 8% Underlying operating profit up 12% Underlying PBT up 14% Underlying EPS up 14% 6

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

2. FINANCIAL REVIEW

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 24% GBP impact on revenue by 37% 2015 fx rate 1.598 currency 2014 fx rate 1.601 Aus Dollar 7% £0.4m negative impact on revenue 2015 fx rate 1.857 2014 fx rate 1.735 Other: £0.2m-ve 4% 9 63% of revenue in the period is non-GBP. This has had a £2.4m negative impact on revenue (H1: £1.6m)

FINANCIAL REVIEW Revenue analysis £68.5m 2014 reported 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 exchange rates LFL: Prior year results adjusted to include the results of recent acquisitions as if they had been owned for the same period in the prior year

FINANCIAL REVIEW Revenue by segment MVM £40.0m 54 % LFL constant currency up 11% Total up 10% MI £25.8m 35 % LFL constant £73.9m currency down 3% Total down 5% MPO £8.1m 11 % LFL constant currency up 42% Total up 67% 11

FINANCIAL REVIEW Client analysis Revenue from Renewal 83% 94% renewable rate contracts (by value) Revenue from Clients taking 78% 17% international 2+ services sources 12 International sources defined as multi-territory or non-UK domestic

FINANCIAL REVIEW Underlying operating profit and margin Operating profit Margin £11.3m 16.6% 2014 reported 2015 reported £11.7m 15.9% 2015 c/currency £12.7m 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 £0.6m, USD £0.3m, Other £0.1m

FINANCIAL REVIEW Underlying diluted EPS analysis 10.1p 2014 reported 2015 reported 10.7p 2015 c/currency 11.6p 6% increase 14% increase at constant currency 14

FINANCIAL REVIEW Balance Sheet and working capital Strong Balance Sheet Improved cashflow Cash from operations up 17% Net current assets up 138% to £7.9m to £10.0m Underlying cash conversion T otal net assets up 9% to £48.7m up from 77% to 88% Comfortable gearing Improved working capital Debtor days 63 (2014: 69) Net debt up 17% to £26.7m Net trade debtor/creditor Net debt to EBITDA 1.93x outflow improved by 20% 15

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 • £5.9m drawn in the period for acquisitions £20,000 • £3.5m undrawn at April 2015 £15,000 • £20m accordion facility also available (s/t approval) £10,000 • Current estimate of deferred consideration £9.0m £5,000 (£4.9m payable in the next 12 months) £0 Cash (+ve) Debt (-ve) Net debt (-ve) 30 April 2015 30 April 2014 16

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 r end to change to Decembe mber Will result in earlier certainty of year end outturn Should allow for clearer and more timely shareholder communication 17

FINANCIAL REVIEW Year end change reporting timetable Pre close se Results lts Nov 2015 Jan 2016 6 months to Oct 2015 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 to December 2014 will also be presented 18

FINANCIAL REVIEW Maiden dividend Announcement of dividend reflects our confidence in future performance Intend to have a progressive annual dividend Modest 0.4p/s /shar are e maiden n dividend proposed sed (cas ash cost approx £0.3m) T akes into consideration our current gearing Allows us to continue with our ambitious growth plans The maiden dividend will be paid in October 2015. The second dividend will follow our results for the 8 month period to 31 December 2015 with settlement expected in June 2016. All dividends subject to approval at AGM. 19

FINANCIAL REVIEW Financial highlights excl currency impact Revenue EPS +11% +14% £73.9m 10.7p Operating Operating +12% +0.1pp profit £11.7m mgn 15.9% 20 Percentages reflect constant currency growth rates. Results reflect reported rates

3. OUTLOOK

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

4. THE FUTURE OF MPO

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 analytics help companies improve overall performance 24

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 DATA PRODUCT Earn VISIT Rewards WEBSITE Receive recomm- endation Check Reviews Discuss Customise online Product 25

THE FUTURE OF MPO The customer journey Market influence and drivers Demand Marketing Performance Optimization Market Conversion Analytics Engagement Marketing Performance Measurements Improved marketing Predict future marketing performance performance Relationship/loyalty/ advocacy 26

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 10 11 11 12 12 13 13 Managing ng the explosio ion n in cons nsum umer data 3.3 60 56 46 19 8 6 4 7 2 6 3 7 0 Analy lyzing ing & & explo loiting ing data to automate/persona nali lize marco coms 3.8 15 39 76 38 20 9 10 8 5 0 1 2 1 Exp xplo loiting iting new chann nnel l and devic ice choi hoice ces 3.8 42 45 17 52 25 12 9 8 3 7 3 1 0 Privacy concerns around customer data 5.3 24 18 18 41 35 24 17 11 8 9 6 12 1 Generating content marketing 5.4 25 18 16 21 41 40 19 11 10 7 7 8 1 Overcoming financial constraints and demonstrating ROI 5.5 29 16 12 17 26 48 27 15 11 13 6 4 0 Decreasing brand loyalty 7.8 4 6 8 7 9 18 37 54 32 15 13 20 1 Corporate transparency and reputation management 8.1 3 5 4 9 21 16 33 33 25 25 24 26 0 Consumer collaboration and influence online 8.5 0 1 4 7 9 16 25 24 58 49 21 9 1 Realizing the potential in growth markets 8.6 18 13 10 7 6 5 7 11 17 24 35 69 2 Social media management 8.9 1 2 6 5 15 18 18 26 25 19 50 37 2 Shifting consumer demographics 9.2 2 2 6 1 9 11 17 16 27 50 55 28 0 27 Source: Powering Up Marketing Partner Performance – Ebiquity / CMO Council Study 2014/15. 224 respondents

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 on to $120 0 billio ion , , unlockin ing a huge opportunity ity for r marke ketin ing technolog logy companie ies and opening the door to a Decad cade e of t the CMO ” Foundation Capital, 2015 28

THE FUTURE OF MPO But which technology and how? 29