Group plc 2020 Interim Results Investor Presentation August 2020 - - PowerPoint PPT Presentation

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Group plc 2020 Interim Results Investor Presentation August 2020 - - PowerPoint PPT Presentation

Group plc 2020 Interim Results Investor Presentation August 2020 DISCLAIMER AND IMPORTANT NOTICE The information contained in this document (Presentation) has been prepared by Brave Bison Group plc (the Company). The Company is a UK


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Group plc 2020 Interim Results Investor Presentation August 2020

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DISCLAIMER AND IMPORTANT NOTICE The information contained in this document (“Presentation”) has been prepared by Brave Bison Group plc (the “Company”). The Company is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not been fully verified and is subject to material updating, revision and further verification and amendment without notice. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 (as amended) (“FSMA”) and therefore it is being provided for information purposes only. While the information contained herein has been prepared in good faith, neither the Company nor any of its directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any

  • ther written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly
  • disclaimed. Accordingly, neither the Company nor any of its directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect,

express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors,

  • missions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

The views of the Company’s management/directors and/or its partners set out in this document could ultimately prove to be incorrect. No warranty, express or implied, is given by the presentation of these figures here and investors should place no reliance on the Company’s estimates cited in this document. This Presentation may contain “forward-looking statements” that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, performance, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation. This Presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute or form part of any offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in these slides or the Presentation or on the completeness, accuracy or fairness thereof. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. Neither this Presentation nor any copy of it may be (a) taken or transmitted into Australia, Canada, Japan, the Republic of South Africa or the United States of America (each a “Restricted Territory”), their territories or possessions; (b) distributed to any U.S. person (as defined in Regulation S under the United States Securities Act of 1933 (as amended)) or (c) distributed to any individual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicitation or invitation to buy or subscribe any securities or in the context where its distribution may be construed as such offer, solicitation or invitation, in any such case except in compliance with any applicable exemption. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.

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Brave Bison is a Media Group for the New Era

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Your Management Team

Oliver Green Philippa Norridge Theo Green Matt Law

Executive Chairman Chief Financial Officer Director of Growth Non-Executive Director Tangent University College London MullenLowe Profero (part of IPG) Albion Brand Communications University of Oxford Tangent Brockton Capital (Private Equity) Imperial College London Outlier Ventures Analog Folk Tribal Worldwide

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About Brave Bison

A new chapter

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

A Brief History

Brave Bison (formerly known as Rightster) floats

  • n AIM

Multiple CEOs and business models Early success as social publisher and branded content studio

2013 2013-2018 2019 July 2019

Tangent buys 19% stake in Brave Bison from Woodford Oliver Green joins Board as Chairman

December 2019

Philippa Norridge joins as Chief Financial Officer and Matt Law joins as NED Oliver Green becomes Executive Chairman Tangent increases stake twice, now totalling 27%

June 2020

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We produce video content for our media brands. This content is distributed through our network on social media and is watched by millions, sometimes billions of people. Advertising is inserted into this content via programmatic exchanges, and we receive a commission on this revenue. Our advertising business is high growth, low margin (for now) and highly scaleable. Our creative and strategy teams work with clients directly, and through agencies, on social and digital-first campaigns. Our services range in scope from influencer marketing to branded content. We charge clients fees for services provided. Our creative services business is high margin and cash generative.

Advertising Creative Services

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

BB Shareholder Presentation 2020

Our Differentiated Business Model

Our Partners Our Clients

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The Hook is a multiplatform youth entertainment brand enjoyed by an online community of more than 9 million global followers We create and share only the freshest, funniest and most innovative content to entertain and inspire audiences all over the world

GLOBAL FOLLOWERS

9M+

MONTHLY VIEWS

75M

MONTHLY ENGAGEMENTS

1.2M

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VTRND V Satisfying

2.0m Subscribers

The most relaxing ASMR and oddly satisfying videos on the planet.

VTRND V Fit

330k Subscribers

The ultimate fitness routines, challenges and body

  • transformations. Be the best you

can be.

Slick

1.4m Subscribers

The world’s best hair stylists and groomers transform the

  • rdinary into the

extraordinary.

Our Presence on Snap

World Chase Tag

542k Subscribers

The best parkour athletes and Ninja Warrior competitors from around the globe.

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Interim Results

Six months ended 30 June 2020

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

H1 2020 Results Summary

* This is EBITDA adjusted for restructuring costs, share based payments and IFRS 16 ((£0.4m) in 2020 prior to IFRS 16 adjustment) Small apparent errors due to rounding

Annualised cost savings of £1.1m made in H1, forecast EBITDA break-even for H2 2020

H1 2020 H1 2019 Revenue £5.5m £10.1 Advertising £4.6m £6.6m Creative Services £1.0m £3.6m Gross Profit £1.9m £3.4m Advertising £1.2m £1.7m Gross Margin 24% 27% Creative Services £0.7m £1.7m Gross Margin 70% 47% Adjusted EBITDA* (£0.6m) £0.2m Profit / (Loss) Before Tax (£1.4m) (£1.2m) Loss Before Tax is inclusive of Restructuring Costs of: (£0.6m) (£0.4m)

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  • Reduction in revenue to £5.5 million (H1 2019: £10.1 million) and loss before tax of £1.4 million (H1 2019:

£1.2 million) as the Group contended with the challenges of the COVID-19 pandemic

  • Appropriate action has been taken swiftly, with annualised cost savings of £1.1 million implemented to
  • date. One off restructuring costs of £0.6 million (H1 2019: £0.4 million) have been incurred
  • EBITDA loss before restructuring costs of £0.4 million (H1 2019: £0.2 million profit).
  • Improved outlook on the back of a better than anticipated recovery from June 2020, and given the cost

savings the Group is now forecasting to be breakeven on an EBITDA basis in the second half of the year

  • Cash balance as at 30 June 2020 of £2.1 million (30 June 2019: £3.7 million) and no borrowings

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

Financial Highlights

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  • Group is now led by a new management team and Board following the appointment of Oliver Green as

Executive Chairman, Philippa Norridge as Chief Financial Officer and Matthew Law as Non-Executive Director

  • Acquisition and successful integration of The Hook , one of the largest youth-focussed media groups

with over 14 million followers across social media including almost 1 million followers on TikTok

  • Significant client wins during the period, including Panasonic, World Dodgeball Federation, IMV Box,

Media Star Maker and Viral Press

  • Successful revenue diversification across social platforms with content now distributed across

Snapchat, TikTok, Facebook, Instagram and YouTube

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

Operational Highlights

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Outlook

Our Strategy for Growth

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Our Market Brave Bison’s Position $520bn

2020 Global advertising market(1)

50% (and growing)

2020 Digital advertising share (it was 25% in 2014)(1) We are a digital-first media group

  • 2.4%

2020 YoY change in digital advertising spend (it was -20.7% for traditional media)(1) All our campaigns are social-led

33%

2018 % of all media time spent on mobile (it was 7% in 2010)(2) All our media brands are mobile-first

70%

Combined market share of Facebook and Google(2) Facebook and YouTube are our biggest advertising partners

90%

US 13-24 year olds reached by Snap(3) Snap is our fastest-growing content platform

$10bn

Forecast influencer marketing spend for 2020 (it was $1.7bn in 2016)(4) We are a partner of choice for influencer marketing campaigns in the UK and APAC

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

BB Shareholder Presentation 2020

Going Where the Growth Is

(1) GroupM via Financial Times, (2) MoffettNathanson / Bond Capital / eMarketer via The Economist, (3) Snap, Inc, (4) Influencer Marketing Hub (2) (2)

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We believe there is an opportunity for a Buy & Build strategy across the digital media landscape. Our focus is on three core areas, all of which complement our existing business:

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

What?

  • High-growth social publishers;
  • Engaged audiences with a cross-platform

approach;

  • Bonafide brands with multiple revenue
  • pportunities across commerce,

subscription, sponsorship and events. How Much?

  • 25%+ revenue growth;
  • Break-even, or break-even within 12

months

  • £5m to £15m purchase price

Buy & Build

Digital-First Services Content Production Media brands

What?

  • Profitable digital marketing agencies

with 8-12% operating margins;

  • Specific focus such as paid social,

influencer marketing, data, Amazon ads etc.;

  • Ability to cross-sell and extend

campaigns. How Much?

  • Profits of £0.5m to £2.0m;
  • Buyable on 5-8x earnings;
  • Synergies on project teams and
  • verheads.

What?

  • Profitable video production companies

and rights libraries with content that can be repurposed for social platforms such as Facebook, Snap, YouTube, TikTok and Quibi;

  • Existing creative and production

infrastructure for Video on Demand (Netflix, Amazon, NowTV, Hulu) and Linear TV. How Much?

  • Profits of £0.5m to £2.0m;
  • Buyable on 8-10x earnings;
  • Content libraries acquired significantly

below production cost

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The high-growth nature of our market provides us will multiple opportunities for organic revenue growth. Some target areas are shown below:

We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

Organic Revenue Growth

Advertising Growth Creative Services Growth

  • Build on APAC success to launch comprehensive

UK branded content offering

  • Expand influencer marketing proposition
  • Give brands access to original series commissions
  • Improve performance and conversion-led offering
  • Increase quality and quantity of our content
  • utput to restore Facebook revenues
  • Commission new Snap shows
  • Invest in content and product for our recently

acquired web offering

  • Accelerate output on next-generation platforms

such as TikTok and Quibi

Work with a single client across creative services and advertising

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Summary Investment Case

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

BB Shareholder Presentation 2020

Brave Bison Investment Case

  • 1. Management Team

Refreshed management team has sector experience and ‘skin in the game’. Oliver and Theo Green have invested £1.9m for 27% of Brave Bison.

  • 2. High-Growth Sector

Opportunity to capitalise on the growth of digital marketing and the proliferation of content across social media.

  • 3. Global Presence

Brave Bison is represented across Europe and JAPAC, and has a global audience across its media brands.

  • 4. Business Model

Diversified and differentiated revenue streams provide stable earnings and ability to invest free cashflow into growth.

  • 5. Capitalisation

Brave Bison has a strong, debt-free balance sheet.

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Q&A

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Appendix

Financials & Shareholder Register

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

Income Statement

£m HY 2020 HY 2019 Revenue Advertising 4.6 6.6 Creative Services 1.0 3.6 Total 5.5 10.1 Gross Profit Advertising 1.2 1.7 Gross Margin 24% 27% Creative Services 0.7 1.7 Gross Margin 70% 47% Total 1.8 3.4 Gross Margin 33% 33% Administrative Expenses (2.6) (3.6) Adjusted Operating Loss (0.8) (0.2) Restructuring & Impairment (0.6) (1.0) Finance Costs & Other 0.0 0.0 Loss Before Tax (1.4) (1.2)

The business was restructured in H1 2020 and is anticipated to be EBITDA breakeven in H2 2020

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

Statement of Financial Position

£m 30 June 2020 30 June 2019 Intangible assets 1.0 1.3 Property, plant and equipment 0.6 0.0 Total non-current assets 1.5 1.4 Trade and other receivables 2.2 5.6 Cash and cash equivalents 2.1 3.7 Total current assets 4.3 9.3 Trade and other payables (3.6) (6.2) Lease liabilities (0.5)

  • Total current liabilities

(4.1) (6.2) Deferred tax (0.1) (0.2) Lease Liabilities (0.1)

  • Total non-current liabilities

(0.3) (0.2) Net assets 1.4 4.3

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We entertain, inform and inspire a global fanbase with

  • riginal social content

created around their passions

BB Shareholder Presentation 2020

Shareholder Register

Shareholder Description Ownership Tangent Marketing Services * Oliver and Theo Green 27.3% Vesuvius Limited* Gibraltar-based private family office 15.9% CIP Merchant Capital Investment fund 11.7% Simon Davies Private individual 7.0% MMC Ventures UK-based venture capital fund 5.1% Shareholders with less than 3% 33.0% Total 100.0%

* Includes shareholdings through associated companies and individuals