Mi Minds nds + Ma Machi chine nes Group up Limited Financial Results FY2018 Presentation – 3 April 2019 http://mmx.co
Disclaimer The following is a presentation (the “Presentation”) relating to Minds + Machines Limited (“MMX”). The Presentation is being communicated by MMX. It is confidential. Recipients may not provide, or otherwise make available, this Presentation to any person whatsoever and no part of it may be reproduced in any manner without the written permission of MMX. The information in the Presentation is subject to updating, revision and amendment. The Presentation does not constitute or form part of any offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any shares in MMX. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation or any assumptions made as to its completeness. No representation or warranty expressed or implied is given by MMX or any of their officers, employees or agents as to the accuracy of the information or opinions contained in the Presentation and no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising directly or indirectly from any use of the Presentation or its contents. The actual results, performance or achievements of MMX may be materially different from the future results, performance or achievements expressed or implied by any opinions, estimates and projections included in the Presentation. This Presentation is exempt from the general restriction on communications contained in section 21 of the Financial Services and Markets Act 2000 (“FSMA”) on the grounds that it is being provided only to persons of a kind described in Regulation 19 (being persons with professional experience in matters relating to investments), Regulation 48 (being a certified high net worth individual), Regulation 49 (being high net worth companies, trustees of high net worth trusts or unincorporated associations), Regulation 50 (being a sophisticated investor) or Regulation 50A (being a self-certified sophisticated investor) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotion Order”) or to persons who are otherwise permitted by law to receive it. Any recipient of this Presentation who does not fall within Regulations 19, 48, 49, 50 or 50A of the Financial Promotion Order or as described above; or to whom distribution is otherwise not lawful may not rely on it and should return the Presentation to MMX immediately. Neither any company nor any person involved in the preparation of the Presentation owes a duty of care to any person or any recipient. Each person or company must undertake such investigations as they see fit before entering into any contract of any kind. If you are in any doubt as to what action to take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorized under the FSMA immediately. Presentation to MMX immediately. Neither any company nor any person involved in the preparation of the Presentation owes a duty of care to any person or any recipient. Each person or company must undertake such investigations as they see fit before entering into any contract of any kind. If you are in any doubt as to what action to take, you are recommended to seek your own financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorized under the FSMA immediately. Slide 2 Minds + Machines Group Limited | Financial Results FY2018
Achieving our goal A leading pure-play registry of new generic Top-Level Domains (“new gTLDs”) delivering a predictable annuity revenue stream of scale .fit .work .cooking .vip .law . fashion .beer .casa . yoga
At a glance Market Cap: GBP53.6m/USD69.7m | Ticker Symbol: LSE: MMX Registrations FY18 renewal revenue FY18 revenue 37% 97% 5% * 1.81million $9.4million $15.1million ( 31.12.17: 1.32m) (FY17: $4.8m) (FY 17: $14.3million) Intangible assets Cash collections Adj. operating EBITDA ** 30% $81.5m 12.5% * based on book value $16.1million $3.6million (FY 17: $46.2m) (FY17: $12.3m) (FY17: $3.2m**) * FY18 is net of $586k of revenue reversed from a prior period; net of reversal, revenue increased by 10% and adj. operating EBITDA by 31% ** Net of one-off revenue from resolution of contested new gTLD applications and contract restructuring Slide 4 Minds + Machines Group Limited | Financial Results FY2018
Diversified portfolio of names to right of the dot Owned .abogado .bayern .beer .boston .budapest .casa .cooking Generic and vertical • interests .dds .fashion .fishing .fit .garden .horse .law .luxe .miami .nrw .rodeo .surf .vip .vodka Geographic • . 购 物 .wedding .work .yoga icm icm icm - Largest portfolio In partnership - 6 in Europe & US icm .country .london China licensed • On behalf of clients .bradesco .gop In negotiation Typical Usage Revenue Model Email Annual reoccurring fee • .hotel .music Websites . • • Marketing Investment • Slide 5 Minds + Machines Group Limited | Financial Results FY2018
MMX: a pure-play registry MMX TECHNICAL BACK-END OUTSOURCED 32 TLDs owned/managed by MMX as the registry • Technical infrastructure outsourced • EXTERNAL External global sales channel (registrars) • SALES CHANNEL (registrars) Low-cost, scalable model • END USERS Slide 6 Minds + Machines Group Limited | Financial Results FY2018
External global sales channel Continental Europe 57 UK 10 North America 58 China 59 Japan 6 Key India/South East Asia 12 Registrar partners per region South America 1 Rest of the world 7 Internal headcount (Excluding Board) 20 Slide 7 Minds + Machines Group Limited | Financial Results FY2018
Market dynamics Global new gTLD Registrants per Country China | 35.8% Net 3 year Yearly Average 9,507,250 Domains 31-Dec-15 31-Dec-18 Growth Growth Verisign (.com, .net) 139.8m 153.0m 13.2m 3.1% USA | 13.8% Country codes 138.4m 154.3m 15.9m 3.8% 3,677,550 Domains New gTLDs 11.3m 26.5m 15.2m 44.8% Other | 16.3% MMX 289k 1.81m 1.5m 175.4% 4,266,472 Domains Key drivers Global growth of SME’s Germany 2.21% Japan | 5.4% France 1.89% Digital entrepreneurs 1,442,077 Domains U.K. 1.68% Panama | 6.3% Canada 1.56% Domain investors 1,662,837 Domains Whois Proxy | 11.8% India 1.47% (Unknown Registrant) Singapore 1.36% 3,128,773 Domains Russia 1.18% Slide 8 Minds + Machines Group Limited | Financial Results FY2018
MMX: registration & revenue growth Registrations Revenue cdd 2018 based on gross revenue net of 2016 adjustment Slide 9 Minds + Machines Group Limited | Financial Results FY2018
MMX: OPEX & Cost of Sales management MMX OPEX MMX Cost of Sales 30% 3,500 23% 24% 25% as a % of Gross Revenue in 000's 3,000 20% 17% 20% Cost fo Sales 2,500 15% 2,000 10% 1,500 5% 1,000 0% 2015 2018 2016 2017 Cost of Sales Cost of Sales as a % of Gross Revenue 2018 gross revenue net of 2016 adjustment 2018 gross revenue net of 2016 adjustment In 2016, management set as its target OPEX to be 33% In 2016, management set as its target Cost of Sales to of revenue in stable state (gross billings) be 20% of revenue in stable state (gross billings) Slide 10 Minds + Machines Group Limited | Financial Results FY2018
MMX: adjusted Operating EBITDA growth Operating EBITDA adjustments $3,600 $3,200 Adjusted for one-off Items in 000's All years reflect ongoing operations • Accounting Operating EBITDA $2,400 only. All years exclude one-off contested • application revenues and contract restructuring costs but include operational restructuring costs 2018 net of $586k 2016 revenue • reversal $(7,700) 2015 2016 2017 2018 Slide 11 Minds + Machines Group Limited | Financial Results FY2018
MMX: renewal revenue growth Renewal revenue 10,000 Gross Accounting Renewals vs COGs and 9,000 Near 100% growth YoY for last two • years 8,000 7,000 19% underlying growth from MMX • OPEX (in $'000's) 6,000 portfolio in 2018 – H2 boost from 5,000 maiden ICM contribution 4,000 3,000 Key milestone achieved in 2017 of • 2,000 renewal revenue surpassing OPEX 1,000 0 Key milestone achieved in 2018 of • 2015 2016 2017 2018 renewal revenue surpassing OPEX & COGs ahead of schedule Slide 12 Minds + Machines Group Limited | Financial Results FY2018
MMX: monetisation model of names C] 2019 Update 2016 Guidance 10% Premium 11% Channel Premium 13% f Brokered 37% 38% 15% First year premium Standards 23% name billings 17% 24% Renewals Standard names 62% and renewals 34% 16% 1st Year 2nd Year 3rd Year 4th Year 5th Year Today 2018 2016 2017 2021 Slide 13 Minds + Machines Group Limited | Financial Results FY2018
Recommend
More recommend
