INVESTORS DAY Madrid, November 23 2011
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Summary 1. Global overview 2. Bodaclick Brazil 3. LATAM region 4. Europe: Spain, Italy, Portugal & Poland 5. New projects and perspectives 2
1. Global Overview
3 key reasons to invest in Bodaclick I. Significant annual growth in niche market and dominant position in Spain I. Amazing potential in new markets IV. Business Model based on ROI 4
I. Significant annual growth and dominant position in Spain Spain: growing +14% in 1H2011 47% of weddings Brazil grows 350% yoy 56% of sales outside Spain in 1H2011 International sales growing 54% yoy 44% International Sales 56% Total Sales 12.000.000 10.000.000 8.000.000 6.000.000 +14% +29% 4.000.000 350% 2.000.000 0 España Italia Portugal Mexico Caribe Brasil Polonia Total 5 1S2010 1S2011
III. Amazing potential in new markets Nº of advertisers More than 14,000 advertisers Clientes Activos until September 2011 4000 3500 3000 3,496 3,214 2500 2,349 2000 1500 1000 500 0 1,583 565 498 322 202 6 Spain P. Rico Portugal Italy Mexico DO Brazil Poland
IV. Business Model based on ROI We charge clients on a real business basis Our tracking system identifies implicit profitability of fees First mover advantage Ability to reproduce the model in a new country Customize the Web in a Month Time Recruit Local Sales force 12 Month contracts, payable 145 days after signature Renew contracts with incremental ARPA Promote local talent to delegate the management 7
How s the business rolling? Bodaclick Spain: Double digit solid growth E-Commerce: Keeps undertaking its strategic changes Italy: Outperform estimations in margins Poland: Redimensioning the market expectations Mexico: Irregular performance in 2011 but on the right path Brazil: Outstanding growth New projects to continue Bodaclick s development 8
2. Bodaclick Brazil
Bodaclick Brazil Huge Brazilian market size: more than 192 million people Significant wedding market: R$10 bn in 2010 (around 4,35 bn ) 940.564 vs. 170.000 weddings in Spain in 2010 Outstanding sales progression in 1H2011: 350% 10
Nº of visits 800000 Spectacular market penetration 700000 672,075 600000 604,233 537,765 500000 438,718 412,405 400000 300000 291,656 338,305 373,708 383,393 350,940 320,695 374,475 200000 100000 164,625 138,171 122,928 98,933 211.445 0 11 Website visits in Brazil until October 2011
Outstanding sales progression 1.600.000 + 350% 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 1H 2010 1 1H 22011 12
Brazil: Plan 2012-2013 The size of Brazil needs to dimension the market as a continent Different scale in terms of investment and timing to occupy the market Challenge: to build a local strategy where growth and cost efficiency coexist, in an overheated market with huge potential In 2012 200,000 Brazilian brides will organize their wedding on our Website 13
3. LATAM region
MEXICO New strategy since last quarter 2010 Special focus on consolidating existing markets and sales team Unification of commercial ressources (new business + renewals) Key account managers bear more responsibility in contract renewal Significant investment in sales force in 2011 to manage our huge client database Geographical distribution of commercial resources 15
MEXICO progressive sales growth 1H2010 / 1H2011 2.000.000 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 800.000 600.000 400.000 200.000 0 +29% 1 2 1H2010 1H2011 16
CARIBBEAN Dominican Republic & Puerto Rico sales growth 1H2010 / 1H2011 370.000 +13% 360.000 350.000 340.000 330.000 320.000 310.000 300.000 1H2010 1 1H2011 2 17
4. Europe
Perspectives for Consolidated Europe Reaching our EBITDA budgets in Spain and Poland Overperformance expected in Italy Slight negative deviation in Portugal due to talent export Good perspectives in double digit growth Cost control and cost efficiency to generate margins 19
Bodaclick in Europe Spain Italy Portugal Poland 20
SPAIN Advertising: Double digit growth expected for 2011 Significant margins improvement in 2012: delocalization of Call Center (C.A.R) in Uruguay Eventoclick: Sustained growth of a consolidated product Impressive upturn of margins E-Commerce: Keep reducing losses (50% cost cutting, lighter structure) More impact of economic crisis affecting consumption 21
ITALY Italy will reach sales expectations in FY2011 Strict expenditure control: well dimensioned structure Strong middle management team Overperform estimations in margins: +18% in 1H2011 Should impact in BODACLICK valuation: In the path of replying margins of Spanish proxy 22
ITALY Overperform estimations in margins in 1H2011 12% 10% +18% 8% 6% 4% 2% 0% 1H2010 1H2011 23
PORTUGAL Highly hostile environment in 2012 Anticyclical Business Model and Industry: Portugal will achieve sales objectives despite economic crisis Reactivation of the market after changes in the local team No significant investments foreseen for 2012 Great margins in 3Q2011 of around 25% 24
POLAND Strategic position of Poland for Eastern European countries First non Latin market to be opened First impression is Poland to be smaller than expected, brides interacting in a less active way. But everything working Breakeven expected in 4th year 2013-2014. Investment expected for next 2 years of 0,7m until reaching breakeven Sales forecast for next years: 2011: 0.5m ; 2012: 0.7 1m 25
5. New projects & perspectives
Many milestones achieved Bodaclick was the first online company to provide wedding lists transforming the commerce Industry into Ecommerce One of the unique companies in Spain to survive from the bubble explosion Bodaclick created the idea of a virtual mall in each city for couples to organize their wedding with local vendors. Our platform technology developed to track the real business we were generating to the vendors First company in the sector to become a multinational (8 countries) Only Internet company quoted in the Spanish Stock exchange 27
Opening new markets Hostile environment in Europe with turbulences in the markets make us be cautious about new openings in 2012 Big countries like Brazil appear to be a continent rather than a country (900.000 weds vs. 170.000 in Spain). Lower risk to continue expansion in this market Forecast of one new opening next year Give some time for the projects to consolidate before attacking new markets 28
What comes next? A second revolution is taking place in the Internet environment: Social Networks, audiovisual content, ecommerce, multidevice reality Many new opportunities for upsides Always prepared for hitting first! Great talent, great team, thinking heads Multidevice reality: desktop, smart phones, tablets: putting everything together will increase the efficiency in the business funnel conversion Different projects we are investigating and will be investing for next year: Social Networks & Communities Mobile apps Website improvement. Streaming E-Commerce 29
Conclusions Good performance of Spanish proxy growing at double digit Nice margins being already generated in consolidated markets Further consolidation needed in other high growth markets like Mexico with good perspectives for 2012 Solid performance of European countries: anticiclic Industry Huge opportunity in Brazil s growth, combined with a new opening in 2012 Different projects to generate upsides in 2 nd Internet Revolution: Social Networks & Communities Mobile apps Website improvement. Streaming E-Commerce 30
Thank you very much!