Criteo 101 Investor Presentation November 2017 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 beliefs and assumptions only as of the date of this presentation. You should read the Company’s most recent Annual Report on Form 10-K filed on March 1, 2017, including the Risk Factors set forth therein and the exhibits thereto, 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 selected financials • Ticker: • 2016 Financials CRTO • Revenue: $1,799M, +36% at cc • Stock Exchange: NASDAQ Global Market • Revenue ex-TAC: $730M, +37% at cc • CUSIP: 226718104 • Adjusted EBITDA: $225M, +55% at cc • Number of shares • Adj. EBITDA margin: 30.8% of Revenue ex-TAC outstanding: 65.3M 3% • Stock Ownership*: 4% Free float Founders & mgmt VCs 93% * As of June 30, 2016 3
Selected KPIs $27B 17,000+ campaigns 2,700+ annual retailer and in 95+ employees post-click brand clients markets sales 1.2B+ $550B+ 30 offices active annual worldwide monthly commerce shoppers sales 4
Management team Jean-Baptiste Eric Eichmann Benoit Fouilland Rudelle Chief Executive Chief Financial Executive Chairman Officer, 49 Officer, 52 and Co-Founder, 47 Living Social, SAP, K-Mobile, Lucent, Rosetta Stone, Business Objects Roland Berger McKinsey & Co. Mollie Spilman Jonathan Opdyke Chief Operating Chief Strategy Officer, 49 Officer, 40 Millenial Media, HookLogic, Xerox, Yahoo, Beyond Interactive Advertising.com, Time Warner Patrick Wyatt Tom Aurelio Dan Teodosiu Senior Vice Chief Technology Executive Vice President, 34 Officer, 50 President, Human Resources, 51 Yahoo, Estin & Co. Google, Microsoft, Priceline, GE, Hewlett-Packard Symantec, CheerNetworks 5
Our vision Build the highest performing Connect shoppers to the Deliver performance at and open commerce things they need and love scaleto the retailers and marketing ecosystem brandswho participate 6
Commerce marketing is deeply rooted in our DNA Technology Performance Scale Global Presence 7
We are a disruptive innovator and a pioneer 2008 We have since pioneered the industry in many ways… First CPC model in display Mobile Ad Formats App advertising Engine Optimized Segments Product Category level Passback Apple-compliant solution Universal Adaptive CPC bidding Revenue Privacy by Design Largest Hadoop We brought Match Optimizer cluster in Europe performance- 600 TB Facebook of Data analyzed Kinetic Conversion Rate based everyday Sizeless Dynamic Design personalized Native Ads Optimizer creatives CPOP Ads marketing collaborative Daily RTB: 55bn bid Improved to display in 2008 filtering Travel Segments in Engine requests, 1.2bn wins TOP ! Real-time Facebook Traktor Dynamic product banners Creative Onetag Exchange App Deep linking Bidder Direct Optimization Unique User 4B products imported AOV Optimizer Value Prediction from merchants everyday 8
The entire company is about measurable performance 2,700+ employees focus on client sales and profits as key metrics of success Established post-click attribution Client Service Teams Continuous CPC tracking model of sales Maximize Clients Sales Transparent performance information Constant through optimization 24/7 client of campaigns interface 9
We have built a large network with powerful effects 2nd largest global user network * 17,000 commerce and brand clients ** Machine-learning technology Thousands of publishers ** 10 * comScore – Unique Monthly Users – January 2016 – Desktop Only | ** As of September 30, 2017
Our dataset, world-class technology and network drive commerce at scale $27B Annual post-click sales 4x Mass Shopper 16,000+ Personalization Engagement* Retailers ~1,000 & Commerce Brands Brand Commerce Funding Data $550B+ Annual online sales Reach 1,000’s 1.2B+ * Our average click-through rate, or the ratio of clicks generated by our Active shoppers monthly advertisements over the number of advertising impressions we Direct publishers purchased ("CTR"), was over 0.76% in 2016, which represents a factor 11 of over four times the average click-through rate of 0.19%, as measured by the DoubleClick display benchmark tool for 2016.
Four key pillars support our Commerce Marketing Ecosystem • Actionable data: granular shopper intent Scale and purchase history Data • Technology: integrated commerce marketing technology optimized to drive sales and profits Technology • Scale: maximizing performance and reach across the shopper’s online journey Shopper Graph • Shopper Graph: built through collaboration and data sharing among participants in our ecosystem A level playing field for retailers and brands requires collaboration in an open ecosystem 12
We are a truly global company Campaigns in countries offices in countries nationalities Amsterdam Stockholm Toronto 2011 2010 2015 London Grenoble Ann Arbor Moscow 2008 2014 2008 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 Shanghai Osaka 2009 Dubai Miami 2016 2014 2015 2015 Los Angeles New Delhi 2015 2016 Singapore 2013 São Paulo Sydney 2011 2011 13
Market and Trends 14
Web and mobile have changed shopper behavior of shoppers shoppers visit of transactions showroom 2+ retailer sites involve mobile and webroom when shopping online 15
Success factors have changed for retailers (and brands) TODA Y YESTERDA Y Shopper Data Activation of Data • Mass Scale • Predictive Technology • Great Real Estate • Granularity • Real-time Dynamic Optimization • Merchandising • Real-Time Accessibility • Reach at Scale 16
Data-Driven Marketing Is Critical for Retailers and Brands Media Others T echnology / AI Brands Others Others Data Offline Online Granular shopper information at massive scale Others Partial, fragmented, unstructured view of the shopper 17
We are the leader in Commerce Marketing. 18
is quickly emerging as the next big digital marketing category after Search and Social Not limited to digital Centers on inspiring people to buy things Measured by performance – directly driving sales and profits
Commerce marketing has always been our core Criteo’s original technology was a product recommendation engine for retail This engine formed the basis of Criteo Dynamic Retargeting Primarily applied to online commerce: retail, travel and classified Expanding to include data cooperative across retailers to build an omni-retailer solution Expanding to include offline data for a full omnichannel solution 20
Products and Technology 21
A broad portfolio of commerce marketing solutions CRITEO AUDIENCE MATCH CRITEO CRITEO Products DYNAMIC SPONSORED RETARGETING PRODUCTS CRITEO CUSTOMER ACQUISITION CRITEO ENGINE Core UNIVERSAL PREDICTIVE PRODUCT KINETIC DESIGN MATCH RECOMMENDATIONS BIDDING Technology Privacy by Design 22
Criteo Dynamic Retargeting • Connects across web, mobile, social, and video 1 publisher.com with relevance • Drives traffic from store-to-web 1 and web-to-store 1 • Optimizes campaigns to goals with continuous machine-learning • Increases mobile app install 1 and engagement Used by leading retailers 1 Prospective 23
Criteo Sponsored Products • Monetizes brand partners via native ads across web and app • Retains shoppers in retailer store to buy Participating brands 1 Prospective 24
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