Criteo 101 Investor Presentation October 2018 1 •
Safe harbor statement This presentation contains “forward - looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, projections, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition. Forward- looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward- looking statements represent our management’s belie fs and assumptions only as of the date of this presentation, and nothing in this presentation should be regarded as a representation by any person that these beliefs or assumptions will take place or occur. You should read the Company’s most recent Annual Report on Form 10- K filed on March 1, 2018, including the Risk Factors set forth therein and the exhibits thereto, and the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2018, completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides. 2 •
Stock information and key financials • 2017 Financials Ticker: CRTO • Revenue: $2,297M, +27% at cc 3 Stock Exchange: NASDAQ Global Market • Revenue ex-TAC: $941M, +29% at cc CUSIP: 226718104 • Adjusted EBITDA: $310M, +35% at cc Shares outstanding 1 : 67.2M • Adj. EBITDA margin: 33% of Revenue ex-TAC Stock Ownership 2 : Founders, Idinvest & Yahoo! Japan, 0.7% NEOs, Management & Employees, 14.6% Free float, 84.7% 1 As of September 30, 2018 2 On a fully-diluted basis, as of September 30, 2018, based on 75.6 M fully diluted shares. 3 • 3 At constant currency
We are building the advertising platform for the open Internet. 4 • 4 •
A global company with scale Ads served in 2017 Clients Criteos in R&D, tech & business intelligence Sales transactions analyzed in LTM Employees User identifiers in the Criteo Shopper Graph Countries Offices worldwide 5 •
Management team Benoit Mollie Spilman Jean-Baptiste Fouilland Chief Operating Rudelle Executive Chief Financial Officer, 50 Chairman and Officer, 53 Millenial Media, Co-Founder, 48 SAP, Yahoo!, K-Mobile, Business Objects Advertising.com Time Warner Lucent, Roland Berger Jonathan Dan Teodosiu Ryan Damon Opdyke Chief EVP, General Technology Chief Strategy Counsel, 45 Officer, 41 Officer, 51 Riverbed Google, HookLogic, Technology, Xerox, Beyond Microsoft, Charles Interactive Hewlett- Schwab, Packard Gunderson Dettmer 6 •
Enabler & pioneer We have since pioneered the industry in many ways… 2008 First CPC model in display Mobile Ad Formats App advertising Engine Optimized Segments Product Category level Identity Graph Passback Adaptive Universal CPC bidding Revenue Privacy by Design Largest Hadoop Optimizer Match Kinetic cluster in Europe Design We brought 600 TB Facebook of Data analyzed Conversion Rate performance-based everyday Sizeless personalized Dynamic Optimizer creatives Native Ads marketing Ads to display in 2008 Apple-compliant Interest Map Daily RTB: 55bn bid solution requests, 1.2bn wins Travel Segments in Engine Real-time Facebook TOP ! Dynamic product banners Onetag Bidder Direct Creative Exchange App Deep linking Unique User Optimization 4.5B products imported from merchants everyday Value Prediction AOV Optimizer 7 •
The advertising platform for the open Internet Criteo Engine Criteo collects data 600TB Data/day 8 data centers PricingAvailabilityConversio nsFormatsCategoryContext ViewedBasketProductBough tBrandBidsWinRateClicksIm Criteo Engine pressionsHashedUserIdentif bids ierCRMBrowsingSKU 600K+ RTB bids/sec Banner is User reacts created by AI Banner is shown Product Recommendation 40K+ ads/sec Look & Feel Based on Prediction & Scoring User Specific 8 •
Criteo offices Amsterdam Stockholm Toronto 2011 2010 2015 London Grenoble Ann Arbor Moscow 2008 2014 2016 2014 Chicago Paris Munich Seoul 2012 Boston 2005 2010 2010 Beijing San Francisco 2012 Istanbul Milan Madrid 2013 2014 2015 Tokyo New York 2012 2014 Barcelona Palo Alto 2011 2011 2014 2009 Shanghai Osaka Dubai Miami 2016 2014 2015 2015 Los Angeles New Delhi 2015 2016 Singapore 2013 Campaigns in countries São Paulo Sydney 2011 offices in countries 2011 nationalities 9 •
Market & Trends
Web and mobile have changed shopping behavior of commerce of shoppers shoppers visit 2+ transactions showroom retailer sites when involve mobile and webroom shopping online 11 •
Digital advertising’s share of global ad budgets continues to grow 50% 40% 2018 2020 12 • Source: Zenith Advertising Expenditures Forecast
Digital ad spend has long overtaken TV ad spend Digital $300B TV $0B 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 13 • Source: MAGNA | Data for 2017 and beyond are forecasts – Created with Datawrapper
Mobile marches on Northern Europe and Japan are mobile leaders. Sweden 60% New Zealand 44% Norway 57% Austria 44% United Kingdom 55% Switzerland 43% Japan 55% Brazil 43% Denmark 51% Taiwan 42% Germany 50% Italy 41% Finland 49% United States 39% Netherlands 49% France 39% Spain 48% Belgium 38% South Korea 47% Canada 33% Turkey 46% Poland 33% Australia 46% Russia 30% 14 • Source: Criteo, Q2 2018. Base: sales weighted aggregate, Apps excluded (see Methodology).
The open Internet is highly under-monetized, creating a huge opportunity for Criteo Time spent Ad spend captured 30% 50% 50% 70% Facebook/Google Open Internet 15 • Based on Nielsen US DCR trends, eMarketer, ExchangeWire
Vision
Facebook, Amazon and Google have significantly increased their footprint in the Internet ecosystem and advertising value chain What has changed over the past 3 years ? Apps are the new frontier for commerce 17 •
Amazon has caused significant disruption across the retail landscape What has changed over the past 3 years ? Our data assets and products enable retailers to fight back collectively 18 •
Advertisers need a strategic partner To navigate the fast-changing environment Advertisers need: Large scale data and powerful A reliable partner with no technology to activate it competing agenda 19 •
The open Internet Our vision is to be • Allows all players – big and small – to interact directly with the advertising audiences and consumers platform for the open Internet. • Provides access to data and transparent measurement • Ensures neutrality with no conflicting agendas 20 •
Criteo Shopper Graph
Criteo Shopper Graph: the world’s largest shopper data set A unified understanding of a shopper’s online journey and real -time intent data Three trusted data collectives form the Criteo Shopper Graph Carefully designed using our guiding principles Open Transparent Two-way exchange of data Clear and permission-based usage Secure Fair Highest data security and privacy Value gained exceeds contribution 22 •
Identity Graph: matching of identifiers cross device, same device, and online/offline Criteo’s advantages Participation • ~80% of clients participate • Opt-in by sending hashed identifiers via OneTag or App Events SDK • 4B user identifiers • Global coverage • +10% average uplift Open, transparent, secure, fair • Encrypted and double-hashed personal identifiable information (PII) • Access at no additional cost 23 •
Interest Map: anonymized shopper interest across products Criteo’s advantages Open, transparent, secure, fair • Access to 4.5B+ products • Data isolated unless opt-in • Large consumer reach worldwide • All data anonymized • Understand performance of • No free riders product attributes • Contribution capped at 15% of pool • 120+ shopping intent signals evaluated • Access at no additional cost per shopper • 21B product interactions per month Participation • 600TB daily shopper data • Opt-in to share anonymized data • Opt-out to use client data only 24 •
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