For personal use only Investor Roadshow Presentation A leading player in the global online classifieds September 2017 industry
Mitula is a leading player in global online classifieds For personal use only 110 52 10 Strong global platform across property, vertical countries property employment, motoring and fashion search sites portals c.$8m >30% >A$10m Profitable from launch with consistent growth post tax EBITDA cash operating and significant cashflow-positive operations margin 1 balance 2 cashflow 1 189m 257m A$0.04 Leveraging high volume of visits to generate visits per clicks outs yield per revenue closer to the transaction quarter 3 per quarter 3 visit 3 Track record of successful acquisition and integration into Mitula’s platform 1. 12 months to 30 June 2017 2. As at 30 June 2017 3. 3 months to 30 June 2017 Page 1 Mitula Group | Investor Presentation
Mitula continues to deliver profitable growth on all dimensions For personal use only Quarterly visits (m) Quarterly yield per visit (A$) 225 +25% 0.05 200 +40% 0.04 175 150 0.03 125 0.02 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2015 2016 2015 2016 2017 Half year revenue (A$m) Verticals and portals AdSense CPC Advertising & Transaction 140 Vertical search sites 20 +77% 120 Portals 10 15 100 80 10 60 40 5 51 110 20 - - H1 H2 H1 H2 H1 At listing Today 2016 2017 2015 Source: Google Analytics, Management Accounts Page 2 Mitula Group | Investor Presentation
Visits continue to recover across the Mitula-branded sites with August the second largest visit month ever For personal use only Commentary Overall Mitula Group visits Jan to Aug 2017 Visits (m) • In February, Mitula-branded sites 90 experienced a significant decrease in organic search visits from Google 80 • Between February and April, organic 70 search visits from Google did not recover 60 as expected 50 • In April a configuration error, which was Jan Feb Mar Apr May Jun Jul Aug causing webpages to be delivered slower than usual, was identified and corrected Mexico and Brazil Mitula-branded sites • Since the correction, visits have (Real Estate) – Jan to Aug 2017 recovered with August being the second- Visits (m) best ever visits month for Mitula - an 8.4% 5 increase over August 2016 4 • Some segments are recovering faster 3 than others with Mexico and Brazil real estate, two major segments, performing 2 well – representing 33.4% and 44.7% Jan Feb Mar Apr May Jun Jul Aug increase over August 2016 respectively Brazil Mexico Source: Google Analytics, Management Accounts Page 3 Mitula Group | Investor Presentation
Mitula generated $11m in EBITDA in the last 12 months – including $4.3m invested in new advertising and transaction revenues For personal use only Capital Management Approach 12 Months to 30 June 2017 Adjusted EBITDA • Traditional “clicks” business continues $30.1 ($13.7) to generate strong EBITDA • Some of this EBITDA is being re- invested in new products and services including: • Fashiola • ($4.3) DotProperty • New advertising and ($1.1) transaction based $11.0 products/services • These new products and services generated revenues of $4.3m in the last 12 months on a break even basis • Balance of EBITDA kept in reserve for potential acquisitions Revenue Clicks New Corporate EBITDA Business Unit Business Expenses Expenses Investment Source: Market Release, Management Accounts Page 4 Mitula Group | Investor Presentation
There are three main business models in online classifieds with the Mitula Group operating in all three For personal use only 1 2 3 Clicks Advertising Transactions Monetising the direction Monetising the creation Sharing the sales of visits to other advertising of sales leads commission and transaction websites ▪ Dominated by Google ▪ Dominated by branded ▪ An emerging business portals and classifieds sites model, bringing more of the ▪ Vertical aggregators, value capture into play for ▪ Higher growth, and for including Mitula, Trovit, online businesses Webjet, Kayak and market leaders, strong ▪ End customer willing to pay Skyscanner, provide margins consumers with industry- a share of the commission ▪ Pricing power a function of specific search portals for high-quality lead share of visits and leads generation ▪ Overall, a low-touch, low created within a particular ▪ Increasingly facilitated by growth but high-margin market business insights from big data Page 5 Mitula Group | Investor Presentation
Clicks business creates visits, data and free cash flow to reinvest into new Advertising and Transactions businesses For personal use only Increasing value potential from >70m visits per month 1 Clicks Business 2 Advertising 3 Transactions 10x revenue potential per 5-10x revenue potential Original Mitula business that powers growth by: visit vs clicks per visit vs advertising • Generating c.70m visits Organic Growth Opportunities each month • Creating strong cash • Mortgages leads • Property sales flows via sale of CPC • Financing leads • Insurance leads • Placement fees and AdSense • Providing deeper Acquisitions Completed understanding of visitors through interaction • Building team and infrastructure to deliver new opportunities Visits, data and cashflow reinvestments Page 6 Mitula Group | Investor Presentation
Segmenting visitors by understanding who they are and what they want is creating the platform for growth For personal use only Targeted products / Segmentation of services Search visits by • Customised based on • Visitor demographics customer segment … Mortgages • Geographies 10 m • Driven by ability to Finance • Search requirements 10 m deliver and right partners in each 10 m • External information market Insurance 10 m • Interaction with … • Payment on Mitula Group sites Property advertising (CPM, lead) or transaction CPC and (commission share) AdSense basis Only achieved with scale Page 7 Mitula Group | Investor Presentation
Early results show that moving closer to the transaction increases value from each visit – reduces reliance on visit growth For personal use only Extracting Greater Value Yield per visit (A$) – 3 Months to June 30 2017 • Overall Mitula Group captures 4.0c 0.192 per visit across all its products 0.144 • 3.5c per visit is captured from the traditional clicks business – growth is almost wholly reliant on visit increase • Advertising and transactions 0.035 businesses are reliant on understanding more about the visitor and then targeting the right product Clicks Advertising Transactions • Result is: Business • 14.4c per visit in advertising revenue • 19.2c per visit in transaction revenue Mitula Group focus on extracting more value from the existing >70m visits rather than just increasing number of visits Source: Management Accounts for 3 months to 30 June 2017 Page 8 Mitula Group | Investor Presentation
Clicks Business 1 For personal use only Our clicks business unit generates substantial free cash flow and the visits help power the growth platform - Present in over 50 countries through 110 websites - A profitable business unit since launch in 2009 through CPC sales and AdSense - Attracts 70 million visits each month with search results across homes, cars, jobs and more Page 9 Page 9
Clicks business has historically generated most of the revenues For personal use only Revenue breakdown (AUD $m) 18.0 16.0 • Clicks business has two revenue streams – CPC sales 14.0 (‘cost per click’) and Google 12.0 AdSense • In H1 2017 the clicks business 10.0 generated 79.8% of Mitula 8.0 Group revenue • Clicks business expected to 6.0 stabilise over time as more 4.0 clicks are diverted to higher- value advertising and 2.0 transaction businesses 0.0 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 AdSense CPC Adv/Txn Source: Management Accounts Page 10 Mitula Group | Investor Presentation
Industry consolidation has helped grow clicks business revenue For personal use only Acquisition of Nestoria and Acquisition (May 2015) August 2017 Nurora demonstrate Mitula’s ability to assess and execute on Sites opportunities in line with stated 9 15 strategy 13.1m • Concluded integration process within 6 months of 6.0m Visits completion • Continue to invest % Total vertical 12.1% 19.7% significantly to fully optimise search visits operational performance • Key achievements include the consolidation of its presence Visits (m) Acquisition (March 2016) August 2017 in real estate verticals 17 27 Sites • Including the roll-out of 16 news Nestoria and Nuroa 4.5m vertical search sites 3.1m Nestoria and Nuroa now Visits significant contributors to Mitula Group % Total vertical 4.8% 6.8% search visits Source: Google Analytics Page 11 Mitula Group | Investor Presentation
Advertising 2 For personal use only Organic and acquisitive advertising products are helping drive our growth: - Implementing a range of advertising based products across vertical search platforms in selected high value markets - Acquired DotProperty in 2016 to increase exposure to advertising revenues - Advertising revenues now account for c. 10% of total revenues in 1H FY2017 Page 12 Page 12
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