Criteo 101 Investor Presentation February 2019 1 •
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, 2018, including the Risk Factors set forth therein and the exhibits thereto, the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2018, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, that was filed with the SEC on November 5, 2018, 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 •
Stock information and key financials Ticker: CRTO 2018 Financials • Revenue: $2,300M, (1%) at cc 3 Stock Exchange: NASDAQ Global Market • Revenue ex-TAC: $966M, +2% at cc CUSIP: 226718104 • Adjusted EBITDA: $321M, +0% at cc Shares outstanding 1 : 67.7M • Adj. EBITDA margin: 33% of Revenue ex-TAC Stock Ownership 2 : • Free Cash Flow: $135M Founders, Idinvest & Yahoo! Japan NEOs, 0.8% Management & Q4 2018 Revenue ex-TAC breakdown Employees 15.3% New solutions 13% Free float 84.0% Core solution 87% 1 As of December 31, 2018 2 On a fully-diluted basis, as of December 31, 2018, based on 72.5 M fully diluted shares. 3 • 3 At constant currency
A global company with scale Ads served in 2018 Clients Criteos in R&D, tech & business intelligence Sales transactions analyzed in LTM Employees Users in the Criteo Identity Graph Countries Offices worldwide 4 •
Management team Benoit Mollie Spilman Jean-Baptiste Rudelle Fouilland Chief Operating Executive Chief Financial Officer, 50 Chairman and Officer, 53 Millenial Media, SAP, Yahoo!, Co-Founder, 48 Business Objects Advertising.com, K-Mobile, Lucent, Time Warner Roland Berger Dan Teodosiu Ryan Damon Denis Collin, Chief EVP, General Chief of Staff Technology Counsel, 45 and People, 50 Officer, 51 Riverbed Alcatel, Google, Technology, Nokia, Microsoft, Charles IBM Hewlett- Schwab, Packard Gunderson Dettmer 5 •
Enabler, pioneer & innovator 2008 We have since innovated in many ways… First CPC model in display Mobile Ad Formats App advertising Engine Optimized Segments Retail Media Identity Graph Passback Adaptive Universal Revenue Privacy by Design Optimizer Match Largest Hadoop cluster in Europe We brought 600 TB Conversion Rate Install of Data analyzed performance-based App everyday Sizeless personalized Optimizer Measurement Native Ads creatives marketing to display in 2008 Apple-compliant Interest Map Daily RTB: 55bn bid solution requests, 1.2bn wins Travel Segments in Engine Real-time Facebook TOP ! Dynamic product banners Onetag Bidder Direct Creative Exchange App Deep linking Optimization Unique User 4.5B products imported Value Prediction from merchants everyday AOV Optimizer 6 •
Solutions built on key assets Data Technology Scale Openness 7 •
Our business model has unique attributes Attractive Direct 325 75% Direct relationships Net client additions per quarter 1 with clients 2 Sticky Elastic Demand 73% ~90% Differentiated in Marketing Client retention rate 3 Of Revenue ex-TAC from uncapped budgets 4 1 On average over the last four quarters through Q4 2018 2 Last twelve months to Q4 2018; excluding Criteo Retail Media 3 Quarterly retention rate for all solutions combined – close to 90% for 35 consecutive quarters 4 On average over the last four quarters through Q4 2018; excluding Criteo Retail Media. Represents uncapped budgets of our 8 • clients, which are either contractually uncapped or so large that the budget constraint does not restrict ad buys
Market & Trends
Digital advertising’s share of global ad budgets continues to grow 50% 40% 2018 2020 10 • 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 11 • Source: MAGNA | Data for 2017 and beyond are forecasts – Created with Datawrapper
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% 12 • 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 13 • 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 15 •
What’s the open Internet? Where advertisers and publishers are in control and free to choose: How to work with Whether to share How to different partners customer data measure success 16 •
Our open Internet vision delivers benefits for all Consumers 1.5B+ • Experience Active Shoppers • Consent Monthly Advertisers Publishers 19,500 $800B+ Advertisers Annual 3,500 ecommerce • Performance • Performance sales Premium • Fairness • Transparency publishers incl. • Transparency • Automation 1,000+ • Control Brands 17 •
Criteo Platform
The Criteo Platform supports advertising & monetization objectives Criteo Marketing Solutions Criteo Retail Media Onsite Offsite Web App Offline AWARENESS CONSIDERATION CAMPAIGNS CAMPAIGNS CONVERSION Criteo Platform 19 •
Fueled by a unique data set and powered by Artificial Intelligence Leveraging the world’s largest open commerce data set Criteo Marketing Solutions Criteo Retail Media Onsite Offsite Web App Offline AWARENESS CONSIDERATION CAMPAIGNS CAMPAIGNS CONVERSION AI Engine Product Predictive Lookalike Finder DCO+ 1 Recommendation Bidding Criteo Platform Shopper Graph 20 • 1 Dynamic Creative Optimization+
Criteo Marketing Solutions Full-funnel capability addressing the entire buying journey Consideration MARKETING GOALS Conversion Awareness Generate interest in your Get people to consider your Encourage interested people products or services products or services to purchase • Brand Awareness • Traffic • Conversions AD OBJECTIVES • Video Views • Web, App • Web, App • App Installs • Store Conversions OPTIMIZATION • Reach, Views • Visits, Installs • Conversions 21 •
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 22 • *Acquired in November 2018
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