Q1 2020 Financial Results Investor Presentation April/May 2020
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 and other actions by our counterparties. Importantly, at this time, the COVID-19 pandemic is having a significant impact on Criteo’s business, financial condition, cash flow and results of operations. There are signifi cant uncertainties about the duration and extent of the impact of the virus. The dynamic nature of these circumstances means that what is said in this presentation could materially change at any time. 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 s imilar 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, 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 2, 2020, and in subsequent Quarterly Reports on Form 10-Q, including the Risk Factors set forth therein and the exhibits thereto, as well as future filings and reports by the Company, 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
Investment thesis Compelling Large market Competitive moats Proven Attractive Mission track-record financial profile $47B market Shopper Data Power the opportunity Close to 90% High profitability Unmatched world’s across the open client retention ID Graph Strong balance marketers with Internet for all solutions sheet, cash flow AI Technology trusted and combined and financial impactful Large client base liquidity advertising Broad consumer reach 3
To power the world’s MARKETERS with trusted and impactful advertising
Our market opportunity is enormous TOTAL $47B $6B $4B Retailers Direct & Indirect Brands 5 Advertising spend on Display and Video – Global open Internet excluding China. Source: Criteo, September 2019.
We have unique assets to win Global Footprint Advertisers & Publishers Data & Reach 100+ markets 20,400+ advertisers Well over 2B users in ID Graph 29 offices in 19 countries Incl. 1,000+ brands 4,600+ direct publishers Technology Financial Model Talent 14 years of AI Tech expertise Profitable , with ability to invest 2,700+ employees 1,300B+ ads served in 2019 Cash generative 630 in R&D Solid financial liquidity 6
Direct relationships with many premium commerce and brand clients 7
We maintain high retention across our large client base 100% Client 90% Retention 20.4 20.2 Rate 20.0 19.7 19.4 19.4 19.2 19.0 80% 18.5 18.1 17.3 16.4 70% 15.4 14.5 60% 12.9 11.9 50% 40% 30% 20% 10% 0% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Number of clients (thousands) 8 1 The retention rate represents the percentage of live clients during the previous quarter that continued to be live clients during the current quarter. For all solutions combined.
Extensive supply partnerships ensure broad audience access 4,600 Premium publishers Long-tail & emerging formats Long-tail & emerging formats Flexible buying technology: RTB/S2S, Criteo direct bidder, SDK, API Any relevant creative formats/environment: IAB, Native, In-App, Video, Google AMP 9
Criteo Shopper Graph: The world’s largest set of shopper data A unified understanding of a shopper’s online journey and real -time shopping intent data Identity Graph: Interest Map: Well over 2B users in ID Graph Anonymized shopper interest cross device, same device, across products and online/offline Measurement Network: Conversion and sales across retailers 10
Criteo Identity Graph Matching of identifiers cross device, same device, and online/offline Criteo’s Advantages Persistent ~75% of clients participate 96% of Criteo IDs contain long-term identifiers such as hashed emails or Well over 2B users in ID Graph app identifiers besides cookies Global Coverage Open, transparent, secure, fair Participation Encrypted and double-hashed personal Opt-in by sending hashed identifiers identifiable information (PII) via OneTag or App Events SDK Access at no additional cost 11
Criteo Platform Solutions Retailers Advertisers Marketing Goals Brands Awareness Supply-side Buy-side Advertising Consideration Advertising Technology Technology Web App Store Conversion Campaign Creation & Management Center Self-registration & Billing Onboarding & Integration Insights & Analytics Management Product Dynamic Creative AI Engine Lookalike Finder Predictive Bidding Recommendations Optimization+ £900B+ 2B+ 120+ 10B+ Shopper Graph eCommerce Sales Users in ID Graph Intent signals/shopper Products & Services 12
Criteo Management Center Criteo Platform User Interfaces APIs Campaigns Self-service tools Objective Audiences Supply Coupons Lookalike Finder Billing Event Collection 13
The new Criteo Retail Media Platform – launching Q2 2020 – provides one platform for the open retail media ecosystem Retailers & Saleshouses Brands & Agencies Manage business rules Create and manage governing access to inventory campaigns via self-service UI and data 14
Criteo Executive Leadership Team Megan Clarken Benoit Fouilland David Fox Geoffroy Martin CEO CFO Chief Development EVP and GM, Officer & Acting Chief Growth Commercial Officer Portfolio Diarmuid Gill Ryan Damon Denis Collin Thomas Jeanjean Chief Technology General EVP, People Chief Transformation Officer & Acting Chief Counsel & Acting Chief Officer Product Officer Marketing Officer 15
Our strategic pillars drive our 2020 execution roadmap 1 4 2 3 Strengthen Expand Product Explore Strategic Drive Tech & Game Changers the Core Portfolio Operations Excellence 16
Product Strategy API Self-service Unbundling Brand Awareness Planning and Buying CRM Shopper Graph Consideration Measurement Insights Incrementality Bidder Recommendation Conversion Viewability Brand Safety Fraud 17
Criteo has a clear and strong position on online identification Since inception, we’ve had strong convictions on identification and privacy, about what’s right for the user and where we think the industry should be heading. 1 2 3 18
Criteo’s trusted and impactful advertising builds on five key assets for online identification Privacy by Unrivaled World-class design Identity technology approach Graph & R&D Large Exposure to first-party cookie-less footprint environments 19
Half of our business does not rely on third-party cookies Our goal is to become 100% independent 2019 Revenue ex-TAC Advertising in app uses app identifiers , • not cookies 3PC-dependent “App” includes “Web -to- App”, which uses web Chrome ~25% demand, i.e. shopping intent captured on Business advertisers’ websites (where we access 1P- independent from 3PC cookies ) to buy app inventory (App, Retail Media, Direct Retail Media only uses 1P cookies • Publishers) ~50% Other 3PC- and contextual data dependent Web, Webview Criteo Direct Bidder gives us direct • ~25% access to supply, i.e. first-party inventory 20
Our online identification strategy has four complementary layers Industry First-party Consumer data Product leadership footprint & ID Graph portfolio 21
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