to Investor Relations Update Outlook 2015 19 th November 2014 N B - - PowerPoint PPT Presentation

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Investor Relations Update Outlook 2015

19th November 2014

Welcome

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Overview Offering Financials Key Solutions Outlook

Agenda

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Overview

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Company Overview

PPC (37%) SEO (15%) MEDIA (7%) DATA (17%) AFFILIATE (13%) DESIGN (7%) SOCIAL (2%)

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NetBooster Executive & Strategic Committee

Tim RINGEL CEO (since July 2013) Board of Directors London Tim founded the metapeople group in 1999 which became part of NetBooster in 2011 Vincent ADDED CFO (since June 2011) Executive Committee Paris Vincent joined the group in 2010 from Deloitte Thomas ARMBRUSTER COO (since July 2013) Executive Committee Paris In 2010 Tom joined the metapeople group from UBS Natalie DUSEY General Secretary (since 2013) Executive Committee London Natalie has 10 years+ of experience with listed and international companies Emmanuel ARENDARCZYK Country Manager UK (2006) Strategic Committee London Joined from Google and has worked in numerous positions within the group Kristoffer EWALD Head of DNA (2007) Strategic Committee Copenhagen Kris merged his business in 2007 with NetBooster and became the data specialist Yann GABAY Head of South. Europe (2011) Strategic Committee Paris Yann was MD of Performics (FR) and has worked within the industry for 14 years Jens NIELSEN Head of Nordics (2009) Strategic Committee Copenhagen Jens has 25 years of international management and consulting experience

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Employees by Country

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Client Structure

Top 10 (38%) Top 25 (54%) All other clients

• Total number of relevant clients: 300
• Balanced client structure without major dependencies
• 65% out of the Top 25 are international

Portfolio of international blue chip clients

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Key Clients

Client since 2009 Products: PPC/ FB/SEO/CREA Markets: Worldwide Client since 2007 Products: PPC/AFF/ANL Markets: Germany Client since 2012 Products: PPC/SEO Markets: Worldwide Client since 2011 Products: PPC Markets: 10 markets Client since 2010 Products: PPC/ AFF/SEO/FB Markets: 20 markets Client since 2013 Products: DATA/ANL/CON Markets: Worldwide Client since 2012 Products: PPC/CRM/RTB Markets: 5 markets Client since 2008 Products: SEO Markets: UK

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Offering

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• Search is the core product, with the best cross selling potential
• Data is already a significant part of the offering
• Full product range established in all countries
• Centre of competence (hubs) for key products (data, affiliate), to secure

standardised delivery, have been created

• Facebook is a fast growing service (part of PPC)

Product Split

PPC (37%) SEO (15%) MEDIA (7%) DATA (17%) AFFILIATE (13%) DESIGN (7%) SOCIAL (2%)

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NetBooster Products

15%

• f GM

SEO (Search Engine Optimisation)

• Legacy Product started in 1998
• 60 dedicated professionals across all NetBooster Markets
• Product type: Consultancy

Biggest Clients: PPC (Google Ad-Words, Facebook Ads, Yahoo)

• Legacy Product, started in 2001
• 120 dedicated professionals across all NetBooster Markets
• Product type: Media buying

Biggest Clients: 37%

• f GM

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NetBooster Products

Media (Display Advertising and Real Time Bidding)

• RTB started in 2008
• 30 dedicated professionals across all NetBooster Markets
• Product type: Media buying

Biggest Clients: 7%

• f GM

DATA (CRM, DMP, Analytics, Consultancy)

• Product started in 2012
• 50 dedicated professionals across all NetBooster Markets
• Product type: Consultancy & Licence

Biggest Clients: 17%

• f GM

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NetBooster Products

Affiliate (Affiliate Agency & Affiliate Network)

• Product started in 2003
• 50 dedicated professionals across all NetBooster Markets
• Product type: Media buying

Biggest Clients: 13%

• f GM

Social & Consultancy (Social Media Consulting)

• Product started in 2013
• 10 dedicated professionals across all NetBooster Markets
• Product type: Consultancy

Biggest Clients: 2%

• f GM

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Financials

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• With the acquisition of metapeople in mid 2011, the profitability was

boosted to a higher level

• In 2014, the management team focused on streamlining the “old”

NetBooster business (excluding metapeople), in addition to increasing profitability in all locations

EBITDA 2011 – Q3/2014

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

metapeople NetBooster

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Profitability by Region

• MENA (established in 2012) will reach the targeted level in 2015

2012(a) 2013(a) 2014(e) 20%+ Germany Germany Germany 15-20% UK UK France & South Nordics 10-15% France & South France & South Nordics MENA up to 10% UK France & South Nordics MENA MENA

Before group overheads

Aligned profitability in all regions

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NetBooster MENA

Company Structure (end of 2014)

• Squeeze Out of the minority shareholders of

Guava A/S (9.51%) was completed in October 2014

• Integrate Guava UK into NB UK (end of 2014)
• Integrate NB Affiliate Denmark into NB Denmark (end of 2014)
• Reduced subsidiaries in Germany from 3 to 1
• Establish NB Norway and NB Netherlands (Q1/2015)

NetBooster Finland NetBooster Denmark NetBooster

United Kingdom

NetBooster Sweden NetBooster Spain NetBooster Italy NetBooster France metapeople Germany metapeople Switzerland

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• Squeeze Out Guava
• No more listing requirements due to delisting (e.g. audited annual report)
• Additional cost savings next year: €200k
• Restructuring Germany
• Closedddown NetBooster Germany
• Upstream merger of metaapes GmbH / metapeople GmbH
• Additional cost savings next year: €100k
• Restructuring UK
• Closed down the Telford office
• Merge Guava UK and NetBooster UK
• Additional cost savings next year: €200k
• Restructuring France
• Established more efficient structure
• Additional cost savings next year: €500k

Additional Cost Savings (I)

€1.0m Savings in 2015

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Examples of secured new Business to be activated in 2015 and following years:

New Biz 2015

FMCG Client

A worldwide cosmetic conglomerate All Performance Channels incl. Facebook AD‘s, Google AdWords and RTB 7 Markets incl. Germany, France, Denmark, Spain, Italy, Switzerland and UK

Finance Client

A worldwide bank from Asia Pacific All Performance Channels incl. Facebook AD‘s, Google AdWords, RTB and SEO Entire MENA region for Performance Channels plus worldwide SEO strategy

Majority of New Biz 2015 has already been secured

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• The management expects the business to grow by 5%. This

increase will be achieved with growing budgets from existing satisfied clients and by winning new clients looking for a superb offering. Majority of this new business has already been secured in 2014

• The management expects the profitability up to 16%. The

restructuring efforts completed in 2014 will show full effect in 2015, in addition to further improvements, by growing the business and leveraging the platform

• The management anticipates reaching a target EBITDA range

between €5.5m and €6.0m and NetBooster is well positioned to establish itself as a full service digital agency for large companies

Outlook for 2015 (I)

Doubled EBITDA in 2 years

2013a 2014e 2015e EBITDA €2,7m €4,0m €5,5-6,0m Profitability 8% 12% around 16%

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Outlook for 2015 (II)

0 € 1 € 2 € 3 € 4 € 5 € 6 € 2014e Restructuring 2014e Profitability 2015e Growth 2015e 2015e

EBITDA (€m)

€1,0m €4,0m €0,3m-€0,5m €5,5m- €6,0m €0,3m-€0,5m

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Key Solutions

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Key market drivers

Traditional Advertising budgets are shifting to Digital, in addition to a consolidation of channels and markets with one agency Transparency, Data and Analytics are at the centre of this shift due to the demand of advertisers and their consumers Companies are searching for solutions on their digital strategy because traditional consultancies and media agencies can’t deliver new digital business models New channels like Facebook are rising and challenging the dominance of Google in the digital advertising space

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Data and Analytics Product and Team

• Launched in 2012 to influence the Tech-Strategy of

Clients

• Managed by Kristoffer Ewald (Strategic Committee)
• Part of the Data Offering of NetBooster
• 20 dedicated professionals across all NetBooster

Markets

• Mainly a Consultancy (FTE based) and Licencing

Business (Licence-Fee‘s)

DnA by NetBooster

Landmark Client Project

• Project signed in July 2013 for 2.5 years
• First Phase is to integrate Google Analytics Premium in

1,500+ PSA Websites on a worldwide level

• 5 FTE‘s permanently working on this project

NetBooster’s positioned at the heart of the client’s digital strategy

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DMP Technology owned by NetBooster

• Launched in 2014 to position data at the heart of our mid-size-

clients digital performance strategy and to enable one consistent advertising message across all devices and channels

• Part of the NetBooster Data Offering
• 5 dedicated professionals in France and Germany
• A unique selling proposition for NetBooster, enabling new and

existing clients to understand in real time the performance of their marketing spend across all channels and adjust accordingly to optimise their budgets

GroundControl by NetBooster

Landmark Client Project

• GroundControl project signed in 2014
• First Phase to integrate the GroundControl DMP to run smarter

and consistent advertising campaigns across all digital channels

• 2 FTE‘s permanently working on this project

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Audience Management & Machine Learning

Listen Process Talk

Website CRM Marketing Social Services Retail Open Data Products

Integrated (de-duped) data sets Examine the patterns in historical data and process Learn the characteristics of each audience type

Data Management Platform Machine Learning Web Mobile Email Connected Objects Call Center Instore

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Development & Implementation of Digital

• Launched in 2014 to support our TOP 50 clients to develop,

implement and manage their digital transition strategy

• Managed by Tim Ringel (CEO of NetBooster Group)
• Developed due to client demand as the big consultancy firms and

Media agencies can‘t deliver digital business models

• 20+ team members consisting of the Executive Committee,

Strategic Committee and the NetBooster Country Managers

• Mainly FTE Business for new clients and part of the daily offering

to existing clients to boost their digital revenue and targets

Digital Strategy Consultancy

Landmark Client Project

• Client signed in 2011
• First Phase was to manage the client in D/A/CH on Search
• Second Phase was to win the client in BE/NL/LUX/UK/ES
• Third Phase is to develop the client across more digital channels

and support the digital transition of the business

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NetBooster supports clients on their digital transition strategy

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New PPC Channel – Facebook ADs

• Launched in 2014 to mirror the AdWords PPC Service on the

newly developed Facebook AD environment

• Growing channel due to its Search-like performance on selling

products and sourcing customers

• Commitment to FB to spend €10m media budget in 2015, with

80% already secured in Q4/2014

• FTE plus Performance Component agency fee model

Facebook ADs

Landmark Client Project

• Client signed in 2011
• First Phase was to run Deichmann’s Social Community

Management in multiple markets in 2011/2012

• Second Phase was Social AD’s Fan-Building campaigns in 2013
• Third Phase to commerce in 2015 targeting awareness and

performance campaigns across 20 markets

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A new channel with expected exceptional growth potential

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Outlook

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SWOT Analysis

• Good EMEA & MENA coverage
• A working platform of 450+ people in place

with 20+ Offices

• Full Service Product Offering across all

Performance Marketing Channels plus strong Data Offering

• 100% direct Client Contracts
• No coverage in Eastern Europe, LATAM

and US

• Limited top line growth due to profitability

focus in the last 18 months

• Low trading volume, limited free float and

a low market cap NB’s ability to attract more investors

• Data offering adopted well and puts the

Company at the heart of the clients digital strategy

• Facebook is developing into a new lead

product and fuels the growth of the Company

• Clients are consolidating channels and

markets with one agency and NB is positioned perfectly to capitalise on that

• TV will be the next performance channel and

that will fuel NB‘s growth and positioning

• Worldwide consolidation of client

budgets within one agency

• Current shareholder base can only

support part of our future growth potential

• Digital is a highly competitive industry

for talent, NB might lose senior people

Strong core competencies + multiple engines for growth

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Market Position

NetBooster

Well positioned to threaten the big six

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Management Outlook

• 1,000+ employees
• Strong footprint with local
• ffices in US, EMEA, MENA

and APAC by acquiring other mid sized agencies

• Focus on 400-450 large

national (40%) and global clients (60%)

• Positioning of NetBooster as

the best, most innovative and biggest worldwide independent agency for digital growth and transition

• € 150m+ Enterprise Value
• € 500m+ managed

advertising budgets

• € 80m+ Gross Margin (GM)
• 20%+ GM/EBITDA ratio
• € 15m+ EBITDA
• NetBooster is positioned as

the lead consultant for digital transition of Big Brands

• Full Integrated offering incl.

all digital ad-channels

• Strong focus on new digital

channels like Internet-TV and Video Advertising

• Owned and 3rd party full

technology offering: Analytics, DMP, DSP, CRM, AD-Server etc.

Agency Vision Financial Vision Product Vision

Management Outlook for 2017+

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• Based on the stability achieved, NetBooster now sees itself

being able to develop from the biggest independent European performance agency into the worldwide leader in this segment

• Our corporate finance strategy foresees the use of operating

free cash flows and a bridge loan to repay the Convertible Bond in 2016 (as applicable)

• Management has been given a mandate by the board to start

discussions with potential acquisition targets and to evaluate strategic options with potential partners

Strategic Options

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Our Strategic

SUMMARY

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• Leading independent European performance agency with a

platform for global growth

• Full Service Product Offering across all digital Performance

Marketing Channels plus strong Data Offering

• Grow on the back of positive market momentum, improved

profitability and scale

• Unique client relationship by being at the heart of big

client’s digital strategy

• Experienced management team with proven track record

Strategic Summary

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Thanks for your attention

www.netbooster.com

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Locations

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NetBooster covering Europe

NetBooster Denmark NetBooster FInland NetBooster France Paris No of employees 126 Clients: Bouygues, Accor, Europcar metapeople Germany Helsinki No of employees 17 Clients: Sanoma, Fixura Duisburg, Munich & Hamburg No of employees 125 Clients: Telekom, DEVK, Deichmann Copenhagen & Aarhus No of employees 45 Clients: Nestle, Sca Baby care, Tena NetBooster UK London & Cornwall No of employees 58 Clients: Argos, Accor , Nelly NetBooster Spain Madrid No of employees 19 Clients: Kymco, Moon Media, Accor NetBooster Italy Milan & Rome No of employees 13 Clients: Metro, C&A, Accor NetBooster Sweden Stockholm No of employees 10 Clients: Rapunzel, Lekmer, Lernia

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Other NetBooster offices

NetBooster MENA NetBooster CHINA Dubai No of employees 9 Clients: Emirates, Standard Chartered Shanghai & Hong Kong Emirates, Huwaei, Accor Minority shareholding metapeople Switzerland Zurich No of employees 10 Clients: Swisscom, Holtelplan, Deindeal NetBooster Norway Oslo No of employees 1

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Share

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Listed in Paris Share price: €2.41 (10.11.2014) Number of Shares: 15,519,639 Market Cap: €37.4m Net Debt: €7.5m (June 2014) Enterprise Value: €44.9m

NetBooster Share

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Shareholder Structure

BEFORE dilution TRUFFLE CAPITAL 20.1% PURE INVEST 18.4% ID INVEST 9.0% metapeople POOL 5.4% MANAGEMENT 5.0% ALLIANZ CAPITAL 4.7% AFTER dilution TRUFFLE CAPITAL 16.5% PURE INVEST 13.4% MANAGEMENT 9.9% ID INVEST 6.5% Convertible Bondholder 1 7.2% Convertible Bondholder 2 4.7% metapeople Pool 4.0% ALLIANZ CAPITAL 3.4%

List of dilution tools

• Shares out: 15,519,639
• Convertible Bond: +4,450,000 shares
• The management incentive (BSA): +1,175,000 shares
• Free shares out: +142,000
• Total number of shares after dilution: 21,286,639

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“The material in this presentation is general background information about NetBooster SA, to date, prepared by NetBooster SA. This information is given in a summary form and does not purport to be complete. This presentation, including forecast financial information should not be considered as advice or recommendation to investors or potential investors in relation to acquiring, selling or transfer by any means NetBooster’s securities. Before acting on any information included into this presentation, one should consider the appropriateness of the information, any relevant offer document and especially should seek for independent financial

• advice. It is reminded that all securities involve financial risks.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to NetBooster’s businesses and operations, market conditions, results of operation and financial condition, specific provisions and risk management practices. These statements are based

• n

the current expectations and assumptions of NetBooster’s management and they are, therefore, subject to risks and

• uncertainties. Many factors can impact NetBooster’s results and performance, thus forecasts and

hypothetical examples are subject to uncertainty and contingencies outside NetBooster’s control. Results and performance can be materially different from any future results or performance that may be expressed or implied by the forward looking statements contained in this presentation. NetBooster does not undertake to implement any of the actions and operations that may be described in the forward looking statements. Moreover, we remind you that past performance is not a reliable indication of future performance.”

Disclaimer