Welcome. Outlook th November 2014

Transcription

1 Welcome to Outlook th November 2014

2 Agenda Overview Offering Financials Key Solutions Outlook 2

3 Overview 3

4 Company Overview PPC (37%) SEO (15%) MEDIA (7%) DATA (17%) AFFILIATE (13%) DESIGN (7%) SOCIAL (2%) 4

5 NetBooster Executive & Strategic Committee Tim RINGEL CEO (since July 2013) Board of Directors London Vincent ADDED CFO (since June 2011) Executive Committee Paris Thomas ARMBRUSTER COO (since July 2013) Executive Committee Paris Natalie DUSEY General Secretary (since 2013) Executive Committee London Tim founded the metapeople group in 1999 which became part of NetBooster in 2011 Vincent joined the group in 2010 from Deloitte In 2010 Tom joined the metapeople group from UBS Natalie has 10 years+ of experience with listed and international companies Emmanuel ARENDARCZYK Country Manager UK (2006) Strategic Committee London Kristoffer EWALD Head of DNA (2007) Strategic Committee Copenhagen Yann GABAY Head of South. Europe (2011) Strategic Committee Paris Jens NIELSEN Head of Nordics (2009) Strategic Committee Copenhagen Joined from Google and has worked in numerous positions within the group Kris merged his business in 2007 with NetBooster and became the data specialist Yann was MD of Performics (FR) and has worked within the industry since 14 years Jens has 25 years of international management and consulting experience 5

6 Employees by Country 6

7 Client Structure Top 10 (38%) Top 25 (54%) All other clients Total number of relevant clients: 300 Balanced client structure without major dependencies 65% out of the Top 25 are international 7 Portfolio of international blue chip clients

8 Key Clients Client since 2009 Client since 2007 Client since 2010 Client since 2012 Products: PPC/ FB/SEO/CREA Markets: Worldwide Products: PPC/AFF/ANL Markets: Germany Products: PPC/ AFF/SEO/FB Markets: 20 markets Products: PPC/CRM/RTB Markets: 5 markets Client since 2012 Client since 2013 Client since 2011 Client since 2008 Products: PPC/SEO Markets: Worldwide Products: DATA/ANL/CON Markets: Worldwide Products: PPC Markets: 10 markets Products: SEO Markets: UK 8

9 Offering 9

10 Product Split PPC (37%) SEO (15%) MEDIA (7%) DATA (17%) AFFILIATE (13%) DESIGN (7%) SOCIAL (2%) Search is the core product with the best cross selling potential Data is already a significant part of the offering Full product range established in all countries Centre of competence (hubs) for key products (data, affiliate), to secure standardized delivery, have been created Facebook is a fast growing service (part of PPC) 10

11 NetBooster Products PPC (Google Ad-Words, Facebook Ads, Yahoo) 37% of GM Legacy Product, started in dedicated professionals across the entire NetBooster Markets Product type: Media buying Biggest Clients: SEO (Search Engine Optimisation) 15% of GM Legacy Product started in dedicated professionals across the entire NetBooster Markets Product type: Consultancy Biggest Clients: 11

12 NetBooster Products Media (Display Advertising and RTB) 7% of GM RTB started in dedicated professionals across the entire NetBooster Markets Product type: Media buying Biggest Clients: DATA (CRM, DMP, Analytics, Consultancy) 17% of GM Product started in dedicated professionals across the entire NetBooster Markets Product type: Consultancy & Licence Biggest Clients: 12

13 NetBooster Products Affiliate (Affiliate Agency & Affiliate Network) 13% of GM Product started in dedicated professionals across the entire NetBooster Markets Product type: Media buying Biggest Clients: Social & Consultancy (Social Media Consulting) 2% of GM Product started in dedicated professionals across the entire NetBooster Markets Product type: Consultancy Biggest Clients: 13

14 Financials 14

15 EBITDA 2011 Q3/2014 metapeople NetBooster Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 With the acquisition of metapeople in mid 2011, the profitability was boosted to a higher level In 2014, the management team focused on streamlining the old NetBooster business (excluding metapeople), in addition to increasing profitability in all locations 15

16 Profitability by Region 2012(a) 2013(a) 2014(e) 20%+ Germany Germany Germany 15-20% UK UK France & South Nordics 10-15% France & South France & South Nordics MENA up to 10% UK France & South Nordics MENA MENA MENA (established in 2012) will reach the targeted level in 2015 Before group overheads 16 Aligned profitability in all regions

17 Company Structure (end of 2014) NetBooster France NetBooster Finland NetBooster Denmark NetBooster Sweden NetBooster United Kingdom metapeople Germany NetBooster Spain NetBooster Italy NetBooster MENA metapeople Switzerland 17 Squeeze Out of the minority shareholders of Guava A/S (9.51%) completed in October 2014 Integrate Guava UK into UK (end of 2014) Integrate Affiliate Denmark into Denmark (end of 2014) Reduced subsidiaries in Germany from 3 to 1 Establish Norway and Netherlands (Q1/2015)

18 Additional Cost Savings Squeeze Out Guava No more listing requirements due to delisting (e.g. audited annual report) Additional cost savings next year: 200k Restructuring Germany Closed down NetBooster Germany Upstream merger metaapes GmbH / metapeople GmbH Additional cost savings next year: 100k Restructuring UK Closed down Telford office Merge Guava UK and NetBooster UK Additional cost savings next year: 200k Restructuring France Established more efficient structure Additional cost savings next year: 500k m Savings in 2015

19 New Biz 2015 Examples of secured new Business to be activated in 2015 and following years: FMCG Client A worldwide cosmetic conglomerate All Performance Channels incl. Facebook AD s, Google AdWords and RTB 7 Markets incl. Germany, France, Denmark, Spain, Italy, Switzerland and UK Finance Client A worldwide bank from Asia Pacific All Performance Channels incl. Facebook AD s, Google AdWords, RTB and SEO Entire MENA region for Performance Channels plus worldwide SEO strategy 19 Majority of New Biz 2015 has already been secured

20 Outlook for 2015 The management expects the business to grow by 5%. This increase will be achieved with growing budgets from existing satisfied clients and by winning new clients looking for a superb offering. Majority of this new business has already been secured in The management expects the profitability up to 16%. The restructuring efforts completed in 2014 will show full effect in 2015, in addition to further improvements, by growing the business and leveraging the platform. The management anticipates reaching a target EBITDA range between 5.5m and 6.0m and NetBooster is well positioned to establish itself as a full service digital agency for large companies. 20 Strong EBITDA growth

21 Key Solutions

22 Key market driver Traditional Advertising budgets are shifting to Digital, in addition to a consolidation of channels and markets with one agency Transparency, Data and Analytics are at the centre of this shift due to the demand of advertisers and their consumers Companies are searching for solutions on their digital strategy because traditional consultancies and media agencies can t deliver new digital business models New channels like Facebook are rising and challenging the dominance of Google in the digital advertising space 22

23 DnA by NetBooster Data and Analytics Product and Team Launched in 2012 to influence the Tech-Strategy of Clients Managed by Kristoffer Ewald (Strategic Committee) Part of the Data Offering of NetBooster 20 dedicated professionals across all NetBooster Markets Mainly a Consultancy (FTE based) and Licencing Business (Licence-Fee s) Landmark Client Project Project signed in July 2013 for 2.5 years First Phase is to integrate Google Analytics Premium in 1,500+ Websites on a worldwide level 5 FTE s permanently working on this project 23 NetBooster s positioned in the centre of the clients digital strategy

24 GroundControl by NetBooster DMP Technology owned by NetBooster Launched in 2014 to position data into the centre of our midsize-clients and to enable one consistent advertising message across all devices and channels Part of the Data Offering of NetBooster 5 dedicated professionals in France and Germany Entry service for new clients and their Data needs as a well as a loyalty service for existing clients Landmark Client Project GroundControl project signed in 2014 First Phase to integrate the GroundControl DMP to run smarter and consistent advertising campaigns across all digital channels 2 FTE s permanently working on this project 24

25 Audience Management & Machine Learning Listen Process Talk Web Website CRM Mobile Marketing Social Data Management Platform Machine Learning Connected Objects Integrated (de-duped) data sets Services Retail Realise the patterns in historical data Call Center Open Data Products Learn the characteristics of each audience Instore 25

26 Digital Strategy Consultancy Development & Implementation of Digital Launched in 2014 to support our TOP 50 clients to develop, implement and manage their digital transition strategy Managed by Tim Ringel (CEO of NetBooster Group) Developed due to client demand as the big consultancy firms and Media agencies can t deliver digital business models 20+ team members consisting of the Executive Committee, Strategic Committee and the NetBooster Country Managers Mainly FTE Business for new clients and part of the daily offering to existing clients to boost their digital revenue and targets Landmark Client Project Client signed in 2011 First Phase was to manage the client in D/A/CH on Search Second Phase was to win the client in BE/NL/LUX/UK/ES Third Phase is to develop the client across more digital channels and support the digital transition of the business 26 NetBooster supports clients in their digital transition strategy

27 Facebook ADs New PPC Channel Facebook ADs Launched in 2014 to mirror the AdWords PPC Service into the new developed Facebook AD environment Growing channel due to its Search-like performance on selling products and activating customers Commitment towards FB to spend 10m media budget in 2015 with 80% already secured in Q4/2014 FTE plus Performance Component agency fee model Landmark Client Project Client signed in 2011 First Phase was to run Deichmann s Social Community Management in multiple markets in 2011/2012 Second Phase was Social AD s Fan-Building campaigns in 2013 Third Phase in 2015 running awareness and performance campaigns across 20 markets 27 A new channel with expected exceptional growth

28 Outlook 28

29 SWOT Analysis Good EMEA & MENA coverage A working platform of 450+ people in place with 20+ Offices Full Service Product Offering across all Performance Marketing Channels plus strong Data Offering 100% direct Client Contracts No coverage in Eastern Europe, LATAM and US Limited top line growth due to profitability focus in the last 18 months Low trading volume, limited free float and a low market cap is a handicap for the share to on board more investors Data offering adopted well and puts the company into the center of the clients digital strategy Facebook is developing into a new lead product and fuels the growth of the company Clients are consolidating channels and markets with one agency and is positioned perfectly for that TV will be the next performance channel and that will fuel s growth and positioning Worldwide consolidation of client budgets within one agency Current shareholder base can only support parts of the future growth Digital is a highly competitive industry for talent, might lose senior people 29

30 Market Position NetBooster 30 Well positioned to threaten the big six

31 Management Outlook Agency Vision Financial Vision Product Vision 1,000+ employees Strong footprint with local offices in US, EMEA, MENA and APAC by acquiring other mid sized agencies Focus on large national (40%) and global clients (60%) Positioning of NetBooster as the best, most innovative and biggest worldwide independent agency for digital growth and transition 150m+ Enterprise Value 500m+ managed advertising budgets 80m+ Gross Margin (GM) 20%+ GM/EBITDA ratio 15m+ EBITDA NetBooster is positioned as the lead consultant for digital transition of Big Brands Full Integrated offering incl. all digital ad-channels Strong focus on new digital channels like Internet-TV and Video Advertising Owned and 3rd party full technology offering: Analytics, DMP, DSP, CRM, AD-Server etc. 31 Management Outlook for 2017+

32 Strategic Options Based on the stability achieved, NetBooster is able to develop from the biggest independent European performance agency to the worldwide leader in this segment Part of the future plan of the financial structure is to use the operating cash flows and a bridge loan to repay the Convertible Bond in 2016 (if applicable) Management was mandated by the board to start discussions with potential acquisition targets and potential partners to evaluate strategic options 32

33 Our Strategic SUMMARY

34 Strategic Summary Leading independent European performance agency with a platform for global growth Full Service Product Offering across all Performance Marketing Channels plus strong Data Offering Prepared to grow with the positive market momentum on the back of the achieved profitability and scale Unique client relationship by moderating the big client s digital strategy Experienced management team with proven track record 34

35 Thanks for your attention 35

36 Locations 36

37 NetBooster covering Europe (i) NetBooster France metapeople Germany NetBooster UK NetBooster Denmark Paris No of employees 126 Clients: Bouygues, Accor, Europcar Duisburg, Munich & Hamburg No of employees 125 Clients: Telekom, DEVK, Deichmann London & Cornwall No of employees 58 Clients: Argos, Accor, Nelly Copenhagen & Aarhus No of employees 45 Clients: Nestle, Sca Baby care, Tena NetBooster Spain NetBooster FInland NetBooster Italy NetBooster Sweden Madrid No of employees 19 Clients: Kymco, Moon Media, Accor 37 Helsinki No of employees 17 Clients: Sanoma, Fixura Milan & Rome No of employees 13 Clients: Metro, C&A, Accor Stockholm No of employees 10 Clients: Rapunzel, Lekmer, Lernia

38 NetBooster covering Europe (ii) metapeople Switzerland NetBooster MENA NetBooster Norway NetBooster CHINA Zurich No of employees 10 Clients: Swisscom, Holtelplan, Deindeal Dubai No of employees 9 Clients: Emirates, Standard Chartered Oslo No of employees 1 Shanghai & Hong Kong Emirates, Huwaei, Accor Minority shareholding 38

39 Share 39

40 NetBooster Share Listed in Paris Share price: 2.41 ( ) Number of Shares: 15,519,639 Market Cap: 37.4m Net Debt: 7.5m (June 2014) Enterprise Value: 44.9m 40

41 Shareholder Structure BEFORE dilution TRUFFLE CAPITAL 20.1% AFTER dilution TRUFFLE CAPITAL 16.5% PURE INVEST 18.4% PURE INVEST 13.4% ID INVEST 9.0% MANAGEMENT 9.9% metapeople POOL 5.4% ID INVEST 6.5% MANAGEMENT 5.0% Convertible Bondholder 1 7.2% ALLIANZ CAPITAL 4.7% Convertible Bondholder 2 4.7% metapeople Pool 4.0% ALLIANZ CAPITAL 3.4% List of dilution tools Shares out: 15,519,639 Convertible Bond: +4,450,000 shares The management incentive (BSA): +1,175,000 shares Free shares out: +142,000 Total number of shares after dilution: 21,286,639 41

42 Disclaimer The material in this presentation is general background information about NetBooster SA, to date, prepared by NetBooster SA. This information is given in a summary form and does not purport to be complete. This presentation, including forecast financial information should not be considered as advice or recommendation to investors or potential investors in relation to acquiring, selling or transfer by any means NetBooster s securities. Before acting on any information included into this presentation, one should consider the appropriateness of the information, any relevant offer document and especially should seek for independent financial advice. It is reminded that all securities involve financial risks. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to NetBooster s businesses and operations, market conditions, results of operation and financial condition, specific provisions and risk management practices. These statements are based on the current expectations and assumptions of NetBooster s management and they are, therefore, subject to risks and uncertainties. Many factors can impact NetBooster s results and performance, thus forecasts and hypothetical examples are subject to uncertainty and contingencies outside NetBooster s control. Results and performance can be materially different from any future results or performance that may be expressed or implied by the forward looking statements contained in this presentation. NetBooster does not undertake to implement any of the actions and operations that may be described in the forward looking statements. Moreover, we remind you that past performance is not a reliable indication of future performance. 42