Fyber N.V. H1 2018 Results Presentation 29 August 2018 1 1 - - PowerPoint PPT Presentation

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Fyber N.V. H1 2018 Results Presentation 29 August 2018 1 1 - - PowerPoint PPT Presentation

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Fyber N.V. H1 2018 Results Presentation 29 August 2018 1 1 These materials may contain forward-looking statements based on current assumptions and forecasts made by Fyber N.V.s management and other information currently available to

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Fyber N.V.

H1 2018 Results Presentation

29 August 2018

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“These materials may contain forward-looking statements based on current assumptions and forecasts made by Fyber N.V.’s management and other information currently available to Fyber N.V. By their nature, forward-looking statements involve a number

  • f

risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those expressed or implied by the forward-looking statements. Statements contained in these materials regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. Neither Fyber N.V. nor any other party is under any duty to update or inform you of any changes, whether as a result

  • f new information, future events or otherwise, to the information in these materials.

Certain market data and financial and other figures (including percentages) in these materials were rounded in accordance with commercial principles. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from percentages based on rounded figures. The financial information relating to the Group contained in this document has not been audited or reviewed. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, expressed or implied, is given by or on behalf of Fyber N.V. or any of its affiliates, directors, officers or employees, advisors or any other person as to the accuracy or completeness of the information or

  • pinions contained in this document, and no liability whatsoever is accepted for any such

information or opinions or any use which may be made of them. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities.” 2

Disclaimer

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ss

01

Intro & News

Ziv Elul, CEO

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4

Fyber develops a next generation mobile-first programmatic monetization platform for publishers

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„Old ad tech”

vs.

“New ad tech”

Technology Strategy & business approach Industry positioning

  • Lead with technology
  • Create sustainable value for clients
  • Address fundamental industry issues
  • Open-source / transparent solutions
  • Primary area of investment
  • Drives diversification of revenue

streams

  • Thought leader, influencing industry

trends

  • Attractive partner for other industry

leading companies

  • Ad networks leading with monetization
  • Short-term, opportunistic
  • Hidden fees and mark-ups
  • Black-box solutions, often biased
  • Underinvestment in proprietary tech
  • Web players moving into in-app
  • Limited industry relationships (with

agencies, brands, top tech vendors)

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The Fyber Flywheel

Differentiation through technology

6 6

Primary publisher platform that brings together:

■

Optimal monetization through ‘Fyber FairBid’ – all demand partners compete in real time for every impression

■

State-of-the-art data tools to provide actionable audience insights

■

Proprietary video technology across ad formats

■

Market leading expertise in programmatic and direct advertising

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  • Significant progress in product development and strong

market feedback on product releases & strategic direction on the way to a single, unified platform

  • Partnership agreement signed with Facebook Audience

Network to join ‘Fyber FairBid’

  • ‘Offer Wall Edge’ product launch
  • H1 results burdened by one-off effects and strategic

decisions to set Fyber up for future growth

  • Increased net revenue margin
  • Core business = ‘The New Fyber’ on solid foundations

and expected to remain stable YoY in 2018

  • Revision of guidance for full year 2018

Confirmation of mid-term outlook 2021

Operational Highlights Key Metrics

Monthly unique users 1.2bn Gross revenue H1 2018 €59m

  • Adj. EBITDA H1 2018

€-6m Short-term guidance Gross revenue FY2018E €150 - €180m

  • Adj. EBITDA FY2018E

~ Break-even Mid-term guidance Gross revenue FY2021E €400 - €450m EBITDA FY2021E €40m

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H1 2018 – Introducing ‘The New Fyber’

Current trading and market feedback indicate strong mid-term outlook

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  • Continues to serve

as mediation platform for majority

  • f our large

publishers

  • Offer Wall as main

revenue driver

RTB

  • Tech assets

leveraged for upcoming flagship platform

  • Integrated with

Inneractive exchange to strengthen current monetization

  • Revenue declined

significantly due to ‘Keeping it Clean’ initiative (original business relied on aggregators)

  • Integrated with Fyber

mediation platform to monetize our rewarded video inventory

  • Affected by removal of

aggregators and charging screen ads

  • Revenue continues to

grow as market adoption increases

  • Tech assets leveraged

as foundation of upcoming flagship platform

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The interim effects of integrating 4 platforms

Necessary investments into upcoming unified product

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Investments to set Fyber up for future growth

Technology Business Performance Future Growth

  • Created internal integrations between all existing products
  • Combined key technology assets to create ‘Fyber FairBid’ -
  • ur new flagship product
  • Upgraded infrastructure to reduce operational cost and

improve product stability

  • Shifted focus towards profitability and net revenue
  • Improved net revenue margin from 29% to 36%
  • Short-term negative impact of market cleanup and business

restructuring exceeded our expectations

  • Accelerate roll-out of our integrated publisher platform
  • Further investments in improving monetization capabilities

across main assets (e.g. Rewarded Video and Offer Wall)

  • Striking partnerships with industry leaders, such as Facebook

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02

Financials & Outlook

Yaron Zaltsman, CFO

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  • Revenue development influenced by
  • ‘Keeping it Clean’ initiative
  • Ban of charging screen ads
  • Sales team reorganization
  • Slower decline in net revenue based on

initiatives to increase net revenue margin

  • Margin above 37% in Q2 2018
  • Integration synergies had positive effect
  • n operating expenses
  • Total adj. OPEX reduced by 29%
  • Lower EBITDA despite improved cost

structure due to lower top line

*Adjusted to eliminate one-off impacts such as impairment of goodwill, acquisition related costs and option plans. Unaudited figures

Six months ended 30 June Three months ended 30 June In € million 2018 2017 YoY change 2018 2017 Gross revenue 58.8 119.7

  • 51%

29.5 69.9 Revenue share to 3rd parties (37.6) (84.7)

  • 56%

(18.5) (49.6) Net revenue 21.2 35.0

  • 39%

11.0 20.3 Net revenue margin 36.1% 29.2% 6.9pp 37.4% 29.1% IT cost* (5.6) (8.0) 30% (2.6) (4.3) R&D cost* (6.3) (10.9) 42% (3.0) (5.3) S&M cost* (10.5) (12.6) 17% (4.8) (6.1) G&A cost* (4.8) (7.2) 33% (2.6) (3.3) EBITDA* (6.0) (3.7)

  • 62%

(2.0) 1.3 EBITDA margin*

  • 10%
  • 3%
  • 7pp
  • 6%

2%

Key Financials H1 2018

In € million H1 2018 H1 2017 Aggregators 3 37 Charging screen ads 1 9 Core business

(= residual revenue)

55 74 Reported revenue 59 120

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Note: Change YoY calculated as ‘FY 2018 updated forecast’ vs. ‘FY 2017’

Updated gross revenue guidance 2018

Core business to remain stable and expected to grow in the second half of the year

Gross revenue in € million, rounded FY 2018 updated forecast FY 2017 Change YoY FY 2018 initial forecast

Aggregators; ‘Keeping it Clean’ initiative 7 56

  • 88%

25 Charging screen ads 2 29

  • 93%

7 Core business (= residual gross revenue) 141-171 145

  • 3%

188-208 Reported/forecasted gross revenue 150-180 230

  • 35%

220-240

Core business expected to remain stable in 2018 despite one-off effects

Full year 2018

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Updated gross revenue guidance 2018

Core business to remain stable and expected to grow in the second half of the year

Gross revenue in € million, rounded FY 2018 updated forecast FY 2017 Change YoY FY 2018 initial forecast

Aggregators; ‘Keeping it Clean’ initiative 7 56

  • 88%

25 Charging screen ads 2 29

  • 93%

7 Core business (= residual gross revenue) 141-171 145

  • 3%

188-208 Reported/forecasted gross revenue 150-180 230

  • 35%

220-240

Full year 2018

Gross revenue in € million, rounded H2 2018 updated forecast H2 2017 Change YoY

Aggregators; ‘Keeping it Clean’ initiative 4 19

  • 79%

Charging screen ads 1 20

  • 95%

Core business (= residual gross revenue) 86 71

+21%

Reported/forecasted gross revenue 91 110

  • 17%

Expected growth in the core business in H2 2018

Detail: Second half of 2018 (lower range of stated guidance)

Core business expected to remain stable in 2018 despite one-off effects

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Note: Change YoY calculated as ‘FY 2018 updated forecast’ vs. ‘FY 2017’

Updated net revenue guidance 2018

Increased margin leads to stable net revenue in the core business despite lower top line

Net revenue in € million, rounded FY 2018 updated forecast FY 2017 Change YoY FY 2018 initial forecast

Aggregators; ‘Keeping it Clean’ initiative 2 14

  • 86%

6 Charging screen ads 1 9

  • 93%

2 Core business (= residual net revenue) 48-58

47

+2%

60-66 Reported/forecasted net revenue 51-61 70

  • 27%

68-74

Full year 2018

Positive effect on net revenue

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Updated net revenue guidance 2018

Increased margin leads to stable net revenue in the core business despite lower top line

Net revenue in € million, rounded FY 2018 updated forecast FY 2017 Change YoY FY 2018 initial forecast

Aggregators; ‘Keeping it Clean’ initiative 2 14

  • 86%

6 Charging screen ads 1 9

  • 93%

2 Core business (= residual net revenue) 48-58 47

+2%

60-66 Reported/forecasted net revenue 51-61 70

  • 27%

68-74

Positive effect on net revenue

Full year 2018

Net revenue in € million, rounded H2 2018 updated forecast H2 2017 Change YoY

Aggregators; ‘Keeping it Clean’ initiative 1 5

  • 80%

Charging screen ads 6 n/a Core business (= residual net revenue) 29 24

+20%

Reported/forecasted net revenue 30 35

  • 14%

Detail: Second half of 2018 (lower range of stated guidance)

Stronger expected growth for H2 2018

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EBITDA* in €m

▪ One-off effects burdening 2018 results ▪ Growth based on new product offering, expansion of partner network, increase of existing accounts expected ▪ Current infrastructure supports business growth, stable cost base allows for rapid EBITDA growth ▪ Direct publisher integrations support stable revenue streams

Gross revenue in €m

*Note: Pro-forma gross revenue 2013-2016; Adjusted EBITDA to eliminate one-off impacts such as impairment of goodwill, acquisition related costs and option plans.

43.3 64.0 129.1 218.1 229.8 2013 2014 2015 2016 2017 2018E 2021E

Estimate Revenue growth at +52% CAGR ‘13-’17

400.0 – 450.0 0.3

  • 0.5
  • 12.1
  • 4.3
  • 1.2

2013 2014 2015 2016 2017 2018E 2021E

Estimate Steady adj. EBITDA improvement since 2015

150.0 – 180.0 +/- 0 > 40.0

Confirmed Mid-term Outlook 2021

The stable cost base allows for EBITDA break-even already in 2018, despite lower-than-expected revenues

One-off effects Core business

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Q3 2018 Interim Statement

Nov 21

Financials & General Meetings Conferences

Berenberg TMT Conf. Zurich

Oct 03

DVFA Equity Forum Frankfurt

Nov 26 Dec 11

MKK Capital Markets Conf. Munich

Financial Calendar 2018

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Thank You!

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19 Contact ir@fyber.com +49 30 609 855 555 Office Address Johannisstraße 20, 10117 Berlin, Germany About Fyber N.V. Fyber is a leading advertising technology company, developing a next generation platform for the programmatic trading of ads, in a data-driven

  • environment. Our mission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their

advertising properties through advanced technologies, innovative ad formats and data-driven decision-making. Fyber’s technology platform provides an

  • pen-access platform for both digital advertisers and publishers with a global reach of more than 1.2 billion unique monthly users. Fyber has offices in

Berlin, Tel Aviv, New York, San Francisco, London and Beijing. The Company employs more than 300 people globally and is listed on the Prime Standard

  • f Frankfurt Stock Exchange under the symbol ‘FBEN’ and the ISIN NL0012377394.

Fyber N.V.

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Appendix

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Profit and Loss Statement

*Note: other expenses include impairment of goodwill in the amount of €80 million and a revaluation of earnout related to the acquisition of Heyzap.

21 Six months ended 30 Jun Three months ended 30 Jun Full year In € million 2018 2017 2018 2017 2017 Gross revenue 58.8 119.7 29.5 69.9 229.8 Revenue share to 3rd parties (37.6) (84.7) (18.5) (49.6) (159.9) Net revenue 21.2 35.0 11.0 20.3 69.9 Other cost of revenue (12.1) (13.6) (6.1) (7.4) (27.2) Gross profit 9.1 21.4 4.9 13.0 42.7 Other operating income

  • 2.6

Research and development (6.5) (11.2) (3.0) (5.6) (19.6) Sales and marketing (10.7) (12.8) (5.0) (6.3) (24.6) General and administrative (5.3) (8.6) (2.8) (4.1) (15.7) Other operating expenses*

  • (82.6)

Earnings before interest and tax (EBIT) (13.4) (11.2) (5.9) (3.0) (97.2) Net finance cost (6.5) (2.5) (3.7) 0.3 (9.9) Profit (loss) before taxes (19.9) (13.7) (9.6) (2.7) (107.1) Income tax gain (expense) 0.7 1.9 0.7 2.1 5.1 Profit (loss) for the year after tax (19.2) (11.8) (8.9) (0.5) (102.0)

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22 In € millions 1 Jan – 30 Jun 2018 1 Jan – 31 Dec 2017 Net cash flow from operating activities (10.2) (21.3) Net cash flow from investing activities (2.9) 1.0 Net cash flow from financing activities 6.3 13.2 Net change in cash and cash equivalents (6.8) (7.1) Net foreign exchange difference 0.1 (0.3) Opening balance cash and cash equivalents 17.6 25.0 Closing balance cash and cash equivalents and cash deposits 10.9 17.6

Cash Flow Statement

  • Funding: Fully exercised the

remaining €3m of a loan facility granted for up to €8m by Sapinda Holding B.V.

  • Entered

into an additional agreement with Sapinda Holding B.V. over €4m to be received in Sep 2018

  • Net

cash from

  • perating

expenses remained negative due to slow start of the year and the high working capital & interest payments.

  • Expect improved results in Q4

due to the positive effect of seasonality

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In € thousands 30 Jun 18 31 Dec 17 Non-current assets 152,812 159,831 Goodwill 124,152 128,140 Other intangible assets 25,661 29,465 Property and equipment 1,325 1,116 Non-current financial assets 1,215 1,110 Deferred tax assets 459

  • Current assets

54,956 71,612 Inventories 108 128 Trade and other receivables 32,257 42,642 Other current fin. assets 10,577 10,319 Other current assets 1,152 928 Cash and cash equivalents 10,862 17,595 Total assets 207,768 231,443 In € thousands 30 Jun 18 31 Dec 17 Equity (Deficit) (9,075) 13,224 Issued capital 11,453 11,453 Share premium 184,812 184,812 Treasury shares (4,745) (4,745) Other capital reserves 24,136 23,711 Legal reserve 6,855 6,225 Accumulated deficit (219,903) (200,070) Other components of equity (11,683) (8,162) Non-current liabilities 151,259 140,251 Long-term employee benefits l. 346 357 Long-term borrowings 144,110 132,995 Deferred tax liabilities 1,495 1,763 Other non-current liabilities 5,308 5,136 Current liabilities 65,584 77,968 Trade and other payables 40,457 48,881 Short-term employee benefits l. 11,081 13,535 Short-term borrowings 13,496 15,013 Income tax payables 550 539 Total liabilities 216,843 218,219 Total equity and liabilities 207,768 231,443

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Statement of Financial Position

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The new Fyber’s path to success

Become the primary monetization platform for the in-app environment

Build foundation for sustainable growth at the expense of potentially damaging short-term revenue (aggregators) Consistent profitability is the main goal Net revenue is the top KPI Entrepreneurial management approach Maximize efficiency and synergies by unifying all companies under a single management and brand Integrated all existing platforms to maximize yield Focused resources on core strengths (e.g. in-app accounts for 90% of revenue, up from 70% in 2017) Clear vision and roadmap towards a differentiated, market leading unified platform R&D is the top area of investment

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Hearst HuffPost Daily Mail TV Guide Upday Axel Springer ABC News

Leading content publishers

Gree Pixelberry Studios Sega Ketchapp Color Switch Glu

Gaming App developers

Pinger Line Kik MeetMe Talkatone Text Me

Social & Messaging App Developers

Ask FM National Rail metroZONE MegaCast

Chromecast player

Restaurant Finder Speed

by Ookla

Utilities App Developers

1.2B

Monthly active users

10K+

Apps directly integrated

180+

Countries

Resulting in a publisher powerhouse catering to all verticals

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Interactive Advertising Bureau IAB standard units including proprietary

  • utstream video

Support for All Ad Units and Formats

NATIVE OFFER WALL BANNER

Display 320x50

INTERSTITIAL

Display 480x320 Display 320x480

MREC

Display 300x250

LANDSCAPE

Video 16:9

SQUARE

Video 1:1

REWARDED

Video 480x320 Video 320x480

VERTICAL

Video 9:16

MREC

Video 300x250

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Robust & reliable video platform Control & data-driven insights for publishers Dedicated team to support the full monetization life-cycle Ability to easily tap into premium demand with high quality video ads

Why partners work with us

Transparent platform for greater visibility Over 1.2bn unique monthly users Leaders in quality & brand safety First to bring true in-app header bidding to the market

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Share Structure

Issuer Fyber N.V. Ticker Symbol FBEN ISIN NL0012377394 Market Frankfurt SE Prime Standard Currency Euro Number of shares 114,533,333 52 weeks high / -low (as of Aug 24) 1.36 / 0.22 Shareholder registered above 3% % Voting Rights Stichting Horizon One (incl. Sapinda Holding B.V.) 38% Abu Dhabi Securities 18% Altera Absolute Global Master Fund 6% FIL Limited (FIL Investments International, FIL Pension Management) 3%

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