to AGM NetBooster SA 2016 Paris, June 20th 2016 N B Agenda 1. - PowerPoint PPT Presentation

Welcome to AGM NetBooster SA 2016 Paris, June 20th 2016 N B

Agenda 1. Overview 2. Products & Services 3. Business Update 4. Financial Information 5. Outlook 2 N B

Overview 3 N B

Company Overview (I) GROSS MARGIN EBITDA 2016e 2016e € 41m € 5.5m 4 N B

Company Overview (II) Gross Margin by Channel - 2015 14,8 € 16 14 12 10 € m 8 5,3 € 5,0 € 6 4,5 € 4,6 € 4 1,9 € 1,1 € 2 0 PPC DATA MEDIA SEO AFFILIATE DESIGN SOCIAL MEDIA Source: Netbooster  NetBooster was established in 1998 and is a pioneer in the digital marketing industry  One-stop-shop for companies to implement the digital transformation of their marketing, advertising, and communication processes  Our business model is based on transparency and performance-based solutions  Data has developed into the second biggest segment in the last 2 years 5 N B

Achievements 2015 / 2016  Produced record breaking results, with GM and EBITDA hitting their highest levels ever  Returned to top line gross margin growth in year-ended 2015  Doubled the level of EBITDA within two years, following restructuring  Won prestigious new clients on quarterly basis  Successfully refinanced the Convertible Bond that came due in March 2016 ( € 10,7m)  Secured an additional € 10m capex facility for M&A led expansion  Resumed M&A activity in earnest with the acquisition of Internet Advantage (NL) and taking control of Media Diamond (ES)  Took an important strategic step with the new PMX partnership in the US  Developed a branding and marketing concept with a branding agency (Kontrapunkt), which will be rolled out in September 2016 6 N B

Products & Services 7 N B

What do clients expect from NETBOOSTER

We focus on large international Corporates  They are looking for high quality across all digital performance and branding channels  They are asking us to deliver this high level of service on an EU, EMEA and WW level on a daily base  They request for dedicated team of vertical specialists and require regular/consistent senior management attention  They request that we tie their digital marketing strategy deeply into the Data (DMP/DSP/Analytics) discussion to safe money or to spend it more efficiently as well as more transparent than our peers We have won 6 large clients in 12 month 9 N B

International Key Clients and New Clients • • 10+ markets Worldwide • • All channels All channels • • Centralized Centralized • • Since 2007 Since Q4/2015 • • 70 markets 40 markets • • PPC, SEO, Data All paid channels • • Centralized Decentralized • • Since 2012 Since Q2/2015 • • 90 markets 30 markets • • All channels All paid channels • • Semi-Decentralized Decentralized • • Since 2008 Extended in Q3/2015 • • 17 markets 8 markets • • All channels PPC, Data • • Decentralized Semi-Decentralized • • Since Q1/2015 Since 2011 10 N B

Focus on International Blue Chip Clients Fully centralised Integrated global/local Decentralised Global Hubs 11 N B

How can we do better?  Main reasons why we don’t succeed in Call for Tenders, that is, if we don’t succeed 1. Geographical Coverage in APAC and LATAM 2. Client is too price driven by his procurement team 3. Trust in Brand is too low as NetBooster is not known across key decision makers in all our regions and key markets  Main reasons why we loose clients, that is, if we loose them 1. Client is in financial turmoil 2. In-housing of projects or the entire topic with pure players 3. Key employees leave NB and the client relationship is with the employee We need to work on Geo and Brand 12 N B

This is NetBooster today (Q1/2016) Web Digital Mobile Social Email Data USA EMEA MENA 13 N B

This is NetBooster tomorrow (in 2017+) Web Website CRM Mobile Marketing Social Email Connected Objects Services eRetail Call Center Instore Data Products USA LATAM EMEA MENA APAC 14 N B

How do we enable THIS CHANGE?

The Challenge for our Clients To deliver a personalised dialogue Real Time All Channels All Devices ANY WHERE TIME DEVICES 16 N B

Our Solution … add Combining all channels Vertical and… Know-How PRM OWNED CRM BI RTB Social EARNED PAID Affili PPC Crea ate SEO tive DATA & ANALYTICS We design the digital strategy of our clients 17 N B

The NetBooster 3D Model (I) Going beyond classical thinking: think 3D 18 N B

The NetBooster 3D Model (II) I am about to buy a product that you sell, and I am seriously considering your brand … and some others. 1D Cover the brand territory 19 N B

The NetBooster 3D Model (III) I am about to buy a product that you sell, I don’t know your brand or I’m not especially 2D considering it as a good solution… Cover the product territory 1D Cover the brand territory 20 N B

The NetBooster 3D Model (IV) 3D I am not currently looking for a Develop the reach of the Brand product that you sell, but I can be interested in the near 2D future… Cover the product territory 1D Cover the brand territory 21 N B

Example of Service Mix in the 3D model 3. Dimension: Gain market share SEA Generics Broadcast on more products and generic Target keywords to maximize visibility • Users with potential affinity Display Audiences & Reach Run on network and main categories to reach Objectives a huge amount of potential targets • Generate a first contact with the brand Social Media Reach and inspire potential target groups via Key figures Social Media activities • Impressions and Share of Voice Video Marketing Reach campaigns in YouTube, Vimeo but also with InStream Video AD’s in FB and Instagram 22

Putting technologie in the middel of it Listen Process Talk Web Website CRM Mobile Data Email Marketing Social Machine Management Learning Platform Connected Objects Integrated (de-duped) data sets Services Retail Call Center Examine the patterns in historical data and process Learn the characteristics of each audience Instore Open type Products Data 23 N B

Business Update 24 N B

Core Services 25 N B

Key Services - Data at the centre of our work 26 N B

Regional Split Gross Margin by Region – 2015 14 11,8 € 12 8,9 € 10 7,0 € 8 € m 6 4,4 € 3,2 € 4 2,0 € 2 0 France UK DACH N. Europe S. Europe EMEA MENA Source: Netbooster  Core market is Western Europe  Growing opportunities outside Europe  Focus on large accounts; no major dependence  One of the few independent agencies left in Europe 27 N B

Employees by Country 28 N B N B

Key Clients 29 N B

NetBooster Profile 30 N B

Competitors Regional Players Big 6 Media Networks   All medium sized competitors have The big advertising networks act disappeared from the map (100-300 under their sub-brands (iProspect) employees)  Only Aegis, WPP and Publicis  Therefore smaller agencies have the compete with NetBooster and are of space to develop (up to 50 employees) a comparable size   After reaching a certain size they get Havas, IPG and Omnicom are not bought by the Networks (e.g. Trakken ) competing with NB on a daily base Top 5 Performance Advertising Agencies 1. Dentsu Aegis (iProspect) 2. WPP (MediaCom) 3. Publicis (Performics) 4. NetBooster / PMX 5 Havas Group 31 N B

Market Trends  A convergence of channels and focus on pure performance  A realisation amongst the client base that branding can also be performance driven  A pent up demand amongst multinational companies for a full service provider capable of delivering across product and geography  The emergence of Facebook as a credible addition to Google  Data is driving transparency and efficiency  TV is big bucks for Digital as Video replaces traditional TV in certain consumer clusters and the trend is growing 32 N B

Focus on Growth  Industry backdrop provides fertile ground for growth  Greater penetration of digital in media spending and consumption  Performance marketing is taking over Consumer Media Spending 800 700 600 500 $ bn 400 Digital 300 200 Traditional 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source:NetBooster, McKinsey & Company Global Media Report 2015  Partnership with the US opens up new possibilities  New financial flexibility:  Convertible Bond refinanced  € 10m available for growth  Improved self-financing capabilities 33 N B

Strategic Summary published 2014 Agency Vision Financial Vision   € 500m+ managed advertising budgets 1,000+ employees € 80m+ Gross Margin (GM)   Strong international footprint with local offices in US, EMEA, MENA and APAC  20%+ GM/EBITDA ratio by acquiring other mid sized agencies  € 15m+ EBITDA  Focus on 400-450 large national (40%) and global clients (60%)  Position NetBooster as the best, most innovative and biggest worldwide independent agency for digital growth and transition Management Outlook for 2017+ 34 N B