Cision Group - Fall 2011: Well Positioned For Growth in a Market Which Has Proven Resilient During Recessions

Transcription

1 Power your story. Cision Group - Fall 2011: Well Positioned For Growth in a Market Which Has Proven Resilient During Recessions Hans Gieskes CEO & Tosh Bruce-Morgan CFO

2 Cision Executive Team Hans Gieskes, President & CEO Cision AB Group (2008) - Former CEO of the LexisNexis Group, former Chairman & CEO Houghton Mifflin Co, former president Monster.com and 21 year senior Reed-Elsevier executive - Broad M & A track record: two dozen deals in EU and USA, two greater than $1.6 billion - Based in Chicago and Stockholm Tosh Bruce-Morgan, EVP & CFO Cision AB Group (2009) - Former VNU Business Media CFO Europe - Based in London and Stockholm Joe Bernardo, CEO Cision North America (1998) - Former President of MGI of Chicago / OAG / Reed Business Magazines - Successfully integrated a dozen North American acquisitions - Based in Chicago Peter Granat, President & COO Cision North America (2003) - Former SVP Business Development at MediaMap.com - Based in Chicago Yann Blandy, CEO Cision Europe (2006) - Former founder, owner and senior consultant at MindShift - Based in Stockholm 2

3 CisionPoint PR Software Enables PR Professionals to get Their Story Out, in an Increasingly Complex World ROI of my the best key influencers impact across pitch my story to these key influencers 3

4 Cision North America ~ 75% ~ 700 MSEK annual revenue ~ 900 employees Cision Europe ~ 25% ~ 225 MSEK annual revenue ~ 300 employees Revenues and employees based on run-rate per Q

5 SaaS All Delivered via Its Software Platform (SaaS - Software as a Service) 15% 25% 60% SOFTWARE SUBSCRIPTIONS TRANSACTIONAL REVENUE PROFESSIONAL SERVICES includes bundled content, data and services, all sold on month subscription basis includes both content and services also includes content, all bundled and sold on basis of months contracts 5

6 Key Market Trends Section Divider

7 Changed Because of Social Media Opinionated consumers talk publicly online about products & services PR Journalists Target & Owned Media 7

8 Marketing Budgets f OWNED MEDIA (facebook page, Co web site etc) ~ 1% of expense EARNED MEDIA (PR) Only ~ 1% of expense But > 20% of impact because of social media PAID MEDIA (Advertising etc.) 98% of expense ~80% of impact More funding for PR Shift in marketing budgets Forrester Research & American Marketing Association 8

9 Core Cision Skills (Content Aggregation & Data Enhancement) 2008 Print / RTV media Changed Media Focus 2011 Social / Internet media Separate Databases Integrated Data Integrated Databases Sold Separately Bundled into Software CisionPoint subscription 9

10 Cision Helps Customers Identify Key Mass Influencers Who Dominate Social Media & Pitch Their Story to These People Cision Influence Ranking Customers Need Cision for: Crucial data about key mass influencers who can power their story Monitoring & analysis of how their story has been picked up CisionPoint software to manage their campaigns 10

11 Cision Helps Companies Publish Their Stories to Their Facebook, Twitter, Company Website, etc. Disney 28,761,240 followers MTV 28,153,933 followers Red Bull 22,410,970 followers Customers Need Cision for: Monitoring & analysis of how their story has been picked up CisionPoint software to manage their campaigns 11

12 Section Key Financials Divider

13 Growing Again After Major Turnaround During Recession 5% Organic Growth by Quarter, since Q Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 0% -5% -10% Organic Growth YoY, Europe Organic Growth YoY, Group Organic Growth YoY, North America -15% -20% -25% Positive Group Organic growth +2% Positive US organic growth 4 quarters in a row Key growth drivers: revenue mix transformation, increased investments in product & sales 13

14 Key Financial Highlights Q Q Q Balance Sheet Highlights Equity Goodwill 1,371 1,419 1,429 Net Working Capital Net Debt Net debt / EBITDA Profit & Loss Highlights Gross Margin 61.0% 58.4% 54.0% EBITDA Margin 18.4% 17.6% 14.8% Operating Profit Margin 13.1% 12.6% 9.4% Cashflow Highlights 12M R Operating Cash flow M R Free Cashflow Earnings per share 12M R Net Profit (MSEK) M R Earnings per share (SEK) negative Significant improvement in Net Debt / 12M R EBITDA last 15 months Attractive cash flow profile / improvement: negative working capital and low tax payments 12M R Earnings / Share at SEK Dividend 14

15 Cision Strategy Section Divider

16 Current Strategy ( ) Has Delivered Turnaround, Growth and Achievement of Financial Goals Current Strategy: Q Change revenue mix 2. Reduce fixed costs 3. Leverage CisionPoint 4. Fill-in acquisitions Financial Goals: A. 20% EBITDA margin B. Net debt / EBITDA < 2.5 C. Growth 2H 2011 Gross Margin Q3 61% vs. 48% Q % less 100% of revenue delivered via software 80% of revenue subscription based N. America is 75% of revenue vs. 45% in 2008 Q % EBITDA Net debt / EBITDA 2.2 2% organic growth (7% for Cision USA) Time to cautiously adjust emphasis more towards growth, rather than just on improving margins 16

17 Summary: Cision Has the Right Product, Scale & Strategy to Benefit From Growing Market Opportunity I. and Cision helps them prove the much better ROI II. For our customers CisionPoint software is the key to being able to include social media in their marketing mix, increasing number of unique digital information services III. Clearly the economic outlook is uncertain, especially in Europe, but: Europe represents only 25% of group vs. North America 75% and Cision today is a much stronger and different company than in ! 17