Interim Results Presentation 6 months ended 31 October 2012 January - PowerPoint PPT Presentation

Interim Results Presentation 6 months ended 31 October 2012 January 2013 an Ebiquity company

Interim review 6 months ended 31 October 2012

Strong year on year performance Revenue growth Total revenue of £30.5m up 27% Operating profit growth Total operating profit of £3.2m up 29% Margin and earnings growth Operating margin up from 10.5% to 10.6% Underlying diluted EPS up 11% to 2.6p All profit and margin numbers are underlying (before highlighted items) 3

2012/13 first half highlights 1. Integration of Fairbrother Lenz Eley 2. Acquisition of FirmDecisions 3. Continuing growth in international business with increased scope and size of client contracts – 77% of revenue is international * 4. Very strong renewals – Analytics 98%, Platform 96% 5. Development of online measurement tools to help drive organic growth from cross selling (attribution measurement, Vital Signs) 6. Improved cross-selling – 14% of clients now take two or more services 7. Strong pipeline of new business opportunities…however, economic climate causing slower contract closure * International sources defined as multi-territory or non-UK domestic 4

Our vision To become the largest and most respected global provider of data- driven actionable insights to the marketing and media community 5

Leading an evolving sector Increasing worldwide demand for independent marketing performance measurement • Media fragmentation and • Measurement, benchmarking, complexity validation and ROI analysis of media buying performance • Convergence of paid and earned media (social media) • Consumer insight, validation, strategic insights, competitive • Growth in available data positioning, analysis of price and around the effectiveness of competitive claims marketing programmes • Paid and earned data • Consolidation and aggregation, tagging and insight globalisation of the marketing and advertising industry • Real-time and predictive performance measurement and • Demand for the measurement KPI insight and analytics of marketing performance ROI • Independent advice on media planning 6

What we do • Provide independent data-driven insights to the global media and marketing community to continuously improve clients' business performance • Help clients continuously improve their efficiency and effectiveness • Help the marketing communications community make better decisions Help brand-owners get the best returns from their media and marketing investments • • Provide independent data-led insight and recommendations to continuously improve ROI • Measure, monitor, benchmark and advise 7

Transformational acquisitions • 1 March 2010 – Acquisition of 82.5% of Excellence Media, a French media consultancy • 13 April 2010 – Acquisition of Xtreme Information (global) and Thomson Media Control (Germany) • 1 May 2010 – Took control of Billetts Germany, our minority interest in a German media consultancy • 28 May 2010 – Acquisition of 51% stake in Media Advisor, an Italian media consultancy • 20 May 2011 – Acquisition of Echo Research, a global reputation management business • 27 May 2011 – Acquisition of 50.1% of The Joined Up Media Company, a Russian media consultancy • 14 October 2011 - Acquisition of Faulkner Media Management, the leading media analytics consultancy business in Australia • 12 March 2012 - Acquisition of FLE, a leading international media consultancy • 3 August 2012 – Acquisition of FirmDecisions, a media and production cost auditing business 8

International presence Russia UK&IR G’many France USA Italy Spain S’pore Australia/ Ebiquity offices 17 Offices in 9 Countries 3 Flagships: UK, US and Germany 9

Ebiquity today Data-driven insights • 800 people worldwide • Operate from 17 global offices plus an extensive partner and ‘franchise’ network • Working with over 1,100 clients across multiple sectors including 87 of the Top 100 advertisers globally • 4 data centres: Newcastle (UK), Chicago (US), Baden-Baden (Germany), Sydney (Australia) • Products and services are delivered by two operating divisions: Analytics Platform Media buying measurement Media monitori ng and performance measurement 10

Analytics Division Improving media and marketing performance How effective is my promotional activity? Am I getting the best media buy? How can I better plan my media? Am I getting good value? How much should I invest in digital? How do I optimise my global investment? What’s my real return on media investment? Media buying measurement Performance measurement and management Deliver measurement, benchmarking, Accurately attribute the impact of validation and ROI analysis of media marketing and advertising activity buying performance in over 25 markets worldwide 11

Platform Division Providing business sensitive insights to our clients What’s happening in developing markets? What product claims are my competition using? What new products have been launched? Where are my ads being seen? Am I price competitive? Who’s saying what about my brand in social media? How can I be sure my advertising appeared? What’s my share of spend? How much are my competitors spending? Media Monitoring Market leader in collecting data on advertising media and providing related information and insight through subscription based platform products used by brand owners 12

Uniquely placed to help our clients Proprietary media data Unique media data pool… • pool, likely market leading wherever we operate • International footprint Media data • Sophisticated online pool delivery platform …directly linked to key business KPIs • On-demand insight and analysis • Ability to link marketing data to key business drivers 13

New Initiatives: Vital Signs Vital Signs will aggregate data points provided by every segment of Ebiquity’s business to enable clients to clearly understand how their marketing activities impact their business KPIs and facilitate simple communication of these insights Key business drivers The window on key business drivers Historic, real-time, predictive Performances Paid KPI’s media spend Earned media 14

Ebiquity’s business model International business with global client base High recurring revenues Growing scope and contract sizes Online platform business is highly scalable Experienced management team Strong and increasing margins ‘Must have’ for some of the largest global advertisers Large and growing addressable market – estimated at c. $30 billion 15

Financial Summary 6 months ended 31 October 2012 16

Revenue Six months ended 31 October 2012 2011 2012 Revenue £24.0m £30.5m • Total revenue up 27% • £6.6m positive impact of acquisitions • 2% organic revenue increase * • 59% of revenue from Analytics (2011: 48%) * on a constant currency basis 17

Year on year acquisitions analysis Impact of current and prior year acquisitions £k Echo: 20 May 2011 Echo: 20 May 2011 Echo: 20 May 2011 Russia (JUMC): 28 May 2011 Russia (JUMC): 28 May 2011 Russia (JUMC): 28 May 2011 Australia (FMM): 14 Oct 2011 Australia (FMM): 14 Oct 2011 Australia (FMM): 14 Oct 2011 FLE: 14 Mar 2012 FLE: 14 Mar 2012 FD: 3 Aug 2012 FD: 3 Aug 2012 18

Revenue analysis As at 31 October 2012 85% 77% Percentage of revenue from Percentage of revenue from renewable contracts international sources * Revenue 37% 14% Percentage of clients taking Percentage of clients taking multi-territory services 2+ services * International sources defined as multi-territory or non-UK domestic 19

Client analysis As at 31 October 2012 £29k £185k Average revenue from Average revenue from clients taking 1 service clients taking 2 services 1,100 clients <4% 17% Percentage of total revenue Percentage of total revenue from our single largest client from our 10 largest clients 20

Renewals analysis Six months ended 31 October 2012 % renewable % renewal revenue rate * Analytics 82% 98% Platform 90% 96% Total 85% 97% * by value 21

Gross Margins Short term negative impact of recent acquisitions on Analytics Division 2011 2012 Analytics 50% 47% Platform 61% 61% Total gross margin of 53% based on gross profit of £16,049k (2011: £13,404k) 22

Underlying operating profit Six months ended 31 October 2012 2011 2012 Op profit £2.5m £3.2m Margin 10.5% 10.6% • Total operating profit up 29% • £1.0m positive impact of acquisitions • £0.3m increase in central costs to service larger group 23

Highlighted items – administration expenses No integration costs in the period and reduced acquisition costs £k £2,014k £1,545k 24

Profit before tax and EPS Strong growth in underlying profit and EPS 6m ended 6m ended 31 October 31 October 2011 2012 Underlying operating result 2,513 3,243 +29% Highlighted items (2,014) (1,545) Reported operating result 499 1,698 +240% Net finance costs/associates (300) (528) Reported result before tax 199 1,170 Underlying result before tax 2,213 2,715 +23% Underlying diluted EPS 2.35p 2.60p +11% 25