Criteo 101 Investor Presentation July/Aug 2019
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. 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 similar 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 1, 2019, 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 • 2 •
Stock information and key financials Ticker: CRTO FY 2018 Financials • Revenue: $2,300M, (1%) at cc 2 Stock Exchange: NASDAQ Global Market • Revenue ex-TAC: $966M, +2% at cc CUSIP: 226718104 • Adjusted EBITDA: $321M, +0% at cc • Adj. EBITDA margin: 33% of Revenue ex-TAC Shares Issued 1 : 66.2M • Free Cash Flow: $135M, 42% of adj. EBITDA Stock Ownership 1 : Q2 2019 Revenue ex-TAC breakdown Idinvest & Treasury stock Founders, Yahoo! Japan 2% New solutions NEOs, 1% 10% Management & Employees 5% Free float 93% Core solution 90% 1 As of June 30, 2019 3 • 3 • 2 At constant currency
A global company with scale and broad reach 20,000 1,300B+ 2B $800B+ Annual Advertisers Criteo IDs Ads served in 2018 ecommerce sales (incl. 1000+ Brands) 2,900 3,800+ 200+ 95+ Publishers connected to App Developers Countries Employees Direct Bidder connected to Direct Bidder (with 31 offices) (incl. 720+ in RD/Product) 4 • 4 •
Introducing the renewed Criteo leadership team JB Rudelle Benoit Fouilland Diarmuid Gill Isabelle Leung-Tack Ryan Damon Denis Collin CEO CFO CTO Global Communications General Counsel People Management Jess Breslav Kenneth Pao Shruthi Chindalur Thomas Jeanjean Cédric Geoffroy Martin Alex Valle Americas APAC EMEA Platform & Operations Vandervynkt Supply & Retail Media App & Store Web 5 • 5 •
We have strong core competencies Shopper Platform Scale/ Data Technology Reach 6 • 6 •
Market & Trends
Digital advertising’s share of global ad budgets continues to grow 50% 40% 2018 2020 8 • 8 • Source: Zenith Advertising Expenditures Forecast
Digital ad spend has long overtaken TV ad spend Digital $300B TV $0B 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 9 • 9 • Source: MAGNA | Data for 2017 and beyond are forecasts – Created with Datawrapper
Paid Display is the #1 Ad Spend category globally Marketing Budget Allocation by Activities, N=901 Paid Display 9% 16% Social Media Marketing 9% Traditional Marketing (1) Email Marketing 9% 14% Content Marketing SEO (2) 9% Search Advertising (PPC) 13% Landing Page/Website 10% Affiliate Marketing 10% Source: Criteo & Euromonitor, State of Ad Tech 2019 (1) Print, Direct Mail, TV, Radio Ads 10 • 10 • (2) Search Engine Optimization
Mobile marches on Northern Europe and Japan are mobile leaders. Sweden 60% New Zealand 44% Norway 57% Austria 44% United Kingdom 55% Switzerland 43% Japan 55% Brazil 43% Denmark 51% Taiwan 42% Germany 50% Italy 41% Finland 49% United States 39% Netherlands 49% France 39% Spain 48% Belgium 38% South Korea 47% Canada 33% Turkey 46% Poland 33% Australia 46% Russia 30% 11 • 11 • Source: Criteo, Q2 2018. Base: sales weighted aggregate, Apps excluded (see Methodology).
The open Internet offers significant opportunity Time Spent Digital Ad Spend 70 % 30 % 50 % 50 % Open Internet Google/Facebook 12 • 12 • Based on Nielsen US DCR trends, eMarketer, ExchangeWire, IDC
Vision
O U R V I S I O N : To be the leading advertising platform for the open internet 14 • 14 •
The open Internet offers multiple benefits to advertisers & publishers Control Neutrality Choice Transparency of data We have no Advertisers and Advertisers and conflicting Advertisers and publishers choose publishers interests with publishers keep which partners to determine how to advertisers and control of their work with and how measure success publishers own data 15 • 15 •
Our open internet vision delivers benefits for all Consumers 2B Experience Criteo IDs Consent Publishers Advertisers 3,800+ $800B+ Publishers Annual Performance connected to Demand ecommerce Criteo Direct sales Bidder And Automation Relevance 20,000 200+ Advertisers App Developers Control Transparency Incl . 1,000+ Brands 16 • 16 •
Criteo Platform
Criteo Platform delivers a breadth of full-funnel advertising opportunities for commerce advertisers and brands Marketing Solutions Retail Media Advertisers Retailers Brands Web App Store Awareness Campaigns Marketing Goals Supply-side Buy-side Consideration Campaigns Advertising Advertising Technology Technology Conversion Campaigns Criteo Platform 18 • 18 •
Fueled by a unique commerce data set and powered by AI Product AI Engine Lookalike Finder DCO+ 1 Predictive Bidding Recommendations $800B 2B 120+ 4.5B+ Shopper Graph eCommerce Sales Criteo IDs Intent signals/shopper Products 19 • 19 • 1 Dynamic Creative Optimization+
Marketing Solutions Full-funnel capability addressing the entire customer journey Awareness Consideration Conversion Generate interest in your Get people to consider your Encourage interested Marketing Goals products or services products or services people to purchase Brand Awareness Traffic: Web, App Conversion: Web, App Ad Objectives Video Views App Installs Store Conversions Reach Visits Purchase Optimization (Conversions) Views Installs 20 • 20 •
Criteo Marketing Solutions Objectives and Campaign Types replace CDR, CCA, CAM, and Manage Ad Criteo Marketing Solutions Campaign examples Marketing Goals Objective Dynamic Customer Audience Manage* Retargeting Acquisition Match Web traffic campaign for new customers, Web Traffic visitors or existing customers App traffic campaign for app users or CONSIDERATION App Traffic existing customers App Installs campaign for existing web App Installs visitors or new users Web conversion campaign for new Web Conversions customers, visitors or existing customers CONVERSION App conversion campaigns for app users App Conversions or existing customers 21 • 21 • *Acquired in November 2018
Retail Media Enabling brands to connect with key retail audiences at all stages of their shopping journey SUPPLY Supply-side Advertising Technology Awareness Consideration Conversion Sargento Swiss Cheese Slices $3.79 Standard Commerce Display Sponsored Products Flexible range of targeting and creative options Buy-side Advertising Technology DEMAND 22 • 22 •
Criteo Retail Media A self-service, API and managed services solution purpose-built for retail Ad Criteo Retail Media Marketing Goals Campaign examples Objective Sponsored Commerce Sponsored Reseller Audience Products Display Products Program Extension Extension (Storetail) Web traffic campaign for new customers, CONSIDERATION Web Traffic ONSITE OFFSITE visitors or existing customers Web conversion campaign for new Web CONVERSION ONSITE OFFSITE OFFSITE Conversions customers, visitors or existing customers 23 • 23 • Onsite = on a retailer’s site | Offsite = on a publisher’s site
Criteo Shopper Graph
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