A new cycle for Avanquest Paris, December 16, 2013 - - PowerPoint PPT Presentation
A new cycle for Avanquest Paris, December 16, 2013 www.avanquest-group.com CONFIDENTIAL DO NOT DISTRIBUTE A new cycle for Avanquest December 16, 2013 1 30 years of expertise , 3 successful transitions 120 ONLINE TRANSITION
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 1
www.avanquest-group.com
Paris, December 16, 2013
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 2
20 40 60 80 100 120
1984 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
ONLINE TRANSITION
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 3
1984 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
…but a new cycle is needed
Stock market capitalization
ONLINE TRANSITION
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 4
A strategy based on 4 focuses
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 5
Take advantage of the synergies of a €100M global company
Promote organic growth in these businesses Concentrate on our strong growth sectors
Make Avanquest simpler and more transparent for our customers
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 6
Apply all of the Group's competencies
– R&D, marketing, distribution channels: e-commerce, retail…
in those sectors where we are already operating but without focus
Anticipate rather than react Focus on the most significant and most dynamic markets that are here to stay The major revolutions over the last 10 years and for the next 10 years: Mobility Connected devices
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 7
Stand out in those sectors where we want to grow …but we have to get back to a product culture Avanquest is an innovative company… Present a unique proposal to our customers Anticipate trends in these markets
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 8
A hundred employees dedicated to R&D 80% of sales made internationally A presence in 7 countries, from France to the United States by way of China Access to more than 20,000 stores in 14 countries Proven experience in e-commerce: 20 sites in 150 countries, 650,000 software items sold online annually, more than 2,000,000 mobile applications downloaded
Relationships with the largest telecom operators, distributors and electronics manufacturers in the world
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 9
In 3 years, Avanquest has created a web-to-print business worth more than €10M
From web-to-print to mobile-to-print
Avanquest has created several mobility best-sellers such as Instacards or PhotosOnTV with several million downloads annually We wanted to be the first to bring mobility into the web-to-print field by taking advantage of our experience in both worlds Through 5 sites today: SimplyToImpress, PhotoAffections, MyCustomCase, CanvasWorld and ClaireBella, all growing by 30 to 50% annually
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS PRODUCTS
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 10
Mobility is THE revolution of the past 15 years
From web-to-print to mobile-to-print
1995 2008 PCs Smartphones 2013
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 11
Mobility is THE revolution of the past 15 years
From web-to-print to mobile-to-print
Today, 1.4 billion photos are taken every day with a smartphone... …but these photos are trapped inside the smartphone
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 12
Avanquest is launching a new product:
With a few clicks, print the photos from your Smartphone
(as well as from Facebook, Instagram, Picasa, Dropbox, Flickr)
1,000 FREE 10x15 photos a year Pay only delivery costs 10 photos €1.99 / 30 photos €2.99 / 85 photos €7.49... All formats possible – at the most competitive prices in the marketplace
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 13
FreePrints by Avanquest is the simplest and least expensive solution today for printing your photos from your mobile
A unique concept that has no equivalent in the world today in terms of simplicity and price Launched in the USA in August 2013 3 million photos sold between September and November Now available in France. In Europe at the start of the year. Avanquest's capacity for innovation in a high-potential sector Avanquest's capacity for taking advantage of all its strengths (R&D, Mobile, Online, distribution, Global)
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 14
The “personalized digital creativity” sector already represents €30M for Avanquest
Customers we can monetize:
in the photo domain.
PERSONALIZED DIGITAL CREATIVITY Mobile-to-print Web-to-Print Accessories Apps
€30M €1M €12M €12.8M €4.2M
Our ambition is to double the size
is the “killer app” that will help us stand out and acquire many customers
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 15
What we've learned over the past 3 months since introducing FreePrints to the U.S. With more than 3 million photos and more than 80,000 customers
Customer acquisition cost between $4 and $5 Annual revenue per customer between $20 and $30 Monetization on our other offers between $5 and $15 For every $1 invested, between $5 and $8 in revenue starting in the 1st year A profitable offer from the first year on A customer life cycle several years long A larger global market than web-to-print An offer that can be developed worldwide
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 16
From printing on paper to the device – manufactured and 3D
From web-to-print to mobile-to-print …
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 17
The company got its start with faxing on PCs – precursor to connected devices
Our expertise in connected devices
For 20 years now we have had close relations with the manufacturers
40 million Sony telephones are delivered with an Avanquest software The other great revolution of the “Internet of Things" and connected devices changed everything in this field For 15 years Avanquest has been a leader in utility tools for PCs. Every year we sell more than €11M worth of PC utilities
FOCUS STRATEGIC MARKETS AVANQUEST STRENGTHS INCOME
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 18
Yesterday's world of PC utilities
Antivirus Maintenance MAJ Drivers Remote Access Backup
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 19
The world of connected devices today
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 20
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 21
A B2B strategy Electronics manufacturer Telecom operator Digital equipment distributor Insurer
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 22
CONNECTED DEVICES Connected accessories Services & Support Web & Data hosting Utilities
€30M €19.6M €2.4M €7.8M €0.2M
The connected-devices sector represents €30M
“Cloud-based Device Mngt” is a new concept To date, a unique concept that allows us to stand out in the field of PC utilities We will be able to monetize customers through:
distribution channels
Our ambition is to double the size
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 23
Shifting to a subscription model Converting our existing customers – more than €11M in utility software sold annually Developing a customer service / support business around our platform Offering complementary solutions through our partners Being active in all sectors:
SMB B2B Consumer
Automotive Consumer Electronics Retailers ISPs MSPs Antivirus Remote Support IT Management Software Antivirus Remote Support Device Management
$50B $19.2B $8.4B
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 24
OTHER ACTIVITIES
Our other activities in transition
B2B Process Flows Software
Physical distribution
€17M €8M €15M
“Non-strategic” sectors represent €40M
€40M
Process Flows: UK subsidiary for B2B document management A growing business, positive cash flows But little interaction with the rest of the Group. Our objective is to migrate all online sales to our two strategioc focuses. To utilize our access to 20,000 points of sale worldwide for selling connected devices Our objective is to stabilize and develop these sales over the next 3 years in our key business sectors
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 25
Our new vision
CONNECTED DEVICES PERSONALIZED DIGITAL CREATIVITY OTHER ACTIVITIES
Other activities
e-commerce retail B2B(toC) Product strategy
€30M €30M €40M €45.5M €34M €20.5M
USA
€44M
Europe
€53M
REST OF THE WORLD
€3M
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 26
An international organization already in place
CONNECTED DEVICES PERSONALIZED DIGITAL CREATIVITY OTHER ACTIVITIES
Other businesses
e-commerce retail B2B(toC) Product strategy
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 27
Our ambition for 2017
100 - 103 M€ 108 - 112 M€ 120 - 130 M€ 140 -150 M€
20 40 60 80 100 120 140 160 2013-2014 2014-2015 2015-2016 2016-2017
EBIT > 10%
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 28
Carry forward a strategy favoring strong organic growth Get back quickly to a lasting profitability once growth has been demonstrated Focus on 2 business sectors driven by new concepts and distinguishing ourselves in growth sectors and relying on our competencies A €150M three-year ambition, with operating profitability exceeding 10% Invest in the coming months in order to establish a new dynamic A stable year under way to reconstruct the company's foundations Sustained growth thereafter in the chosen sectors and products
Our ambition for 2017
CONFIDENTIAL – DO NOT DISTRIBUTE ● A new cycle for Avanquest ● December 16, 2013 ● 29
www.avanquest-group.com
Paris, December 16, 2013