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NB
to
Analyst Meeting
October 12th, 2016
Welcome
NB 2
Overview NetBooster
NB 3
Company Overview
€5.5m
EBITDA
2016e
GROSS MARGIN
2016e
€41m
NB 4
Core Services
NB 5
Some of Our Key Clients
NB 6
Industry Context
Traditional advertising (TV, print, outdoor
and radio) is stagnating
On the contrary digital marketing is
expected to experience high levels of
growth over the coming years
Transparency in TV buying
(programmatic) will increase and agency
fees will drop dramatically
As a result, the Big 6 Media Network’s
(WPP, Publicis, Dentsu/Aegis, Omnicom,
IPG, Havas) core business will stagnate
and their margins will come under severe
pressure
Nimble players like NetBooster will be
able to take advantage of the
considerable growth opportunities
presented, as all media goes digital, while
their larger competitors will need to deal
with bloated cost structures
Total Media Advertising Spend – Key European Markets
Source: Netbooster, eMarketer
UK (GBP, bn) 2014 2015 2016 2017 2018 2019 CAGR
Digital 7.2 8.1 8.9 9.7 10.6 11.3 9.5%
TV 3.9 4.1 4.3 4.3 4.4 4.4 2.3%
Print 2.8 2.7 2.6 2.5 2.5 2.5 -2.5%
Outdoor 1.0 1.1 1.1 1.1 1.1 1.1 2.3%
Radio 0.3 0.4 0.4 0.4 0.4 0.4 0.9%
TOTAL 15.3 16.3 17.2 18.1 18.9 19.7 5.2%
France ($, bn) 2014 2015 2016 2017 2018 2019 CAGR
Digital 3.0 3.2 3.4 3.6 3.8 3.9 5.2%
TV 4.3 4.3 4.3 4.4 4.4 4.5 0.8%
Print 3.6 3.3 3.2 3.1 3.0 2.9 -3.8%
Outdoor 1.7 1.7 1.7 1.7 1.7 1.8 1.1%
Radio 1.0 1.0 1.0 0.9 0.9 0.9 -0.4%
TOTAL 13.5 13.5 13.6 13.7 13.9 14.0 0.7%
Germany ($, bn) 2014 2015 2016 2017 2018 2019 CAGR
Digital 6.3 6.6 7.0 7.3 7.6 7.9 4.8%
TV 5.7 5.9 6.0 6.2 6.2 6.3 2.1%
Print 9.3 9.0 8.7 8.5 8.3 8.2 -2.4%
Outdoor 1.3 1.4 1.4 1.5 1.5 1.5 2.1%
Radio 1.0 1.0 1.0 1.0 1.0 1.0 -0.2%
TOTAL 23.5 23.8 24.1 24.4 24.6 24.9 1.1%
NB 7
Competitors
The big advertising networks act
under their sub-brands (iProspect,
etc.)
Only Aegis, WPP and Publicis
compete with NetBooster and are of
a comparable size
Havas, IPG and Omnicom are not
prepared for a digital world
All medium sized competitors have
disappeared from the map (100-300
employees)
Therefore smaller agencies have the
space to develop (up to 100 employees)
After reaching a certain size they get
bought by the Networks (e.g. Trakken,
55, Summit, Stickyeyes)
Big 6 Media Networks Regional Players
Top 5 Performance Advertising Agencies
1. Dentsu Aegis (iProspect)
2. WPP (MediaCom)
3. Publicis (Performics)
4. NetBooster / PM Digital
5 Omnicom (OMD)
NB 8
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
Data is driving transparency
TV is becoming digital and digital marketing with us
NB 9
Key Achievements 2016
NB 10
Corporate Finance | Key Achievements 2016
Refinancing and Growth Capex
NetBooster managed to refinance the convertible bond (€10.7m) and secure
a credit facility for future growth (€10m) based on the turnaround achieved in
the prior two years
Capital Increase
The growth finance facility required a capital increase of minimum 10% prior
to it being drawdown
Weinberg Capital Partners underwrote a 15% capital increase in September
thus fulfilling this obligation
Acquisition of 4Ps Marketing Ltd
Following the completion of the refinancing and capital increase, NetBooster
was in a position to acquire 4Ps and fulfil it’s strategic ambitions in the UK
Size and presence in the UK make us credible and on the radar for blue chip
UK based clients
Brought on board an excellent management team that will drive forward a
new third pillar in NetBooster’s European Footprint
NB 11
Refinancing
On the 18th of March 2016 NetBooster closed a landmark €20.7 financing agreement
Crédit du Nord was the lead arranger, with the financing pool consisting of Tikehau
Investment Management’s NOVI I fund, BNP Paribas, Société Générale and HSBC
The senior secured credit facility is composed of two tranches:
€10.7m used to reimburse the convertible bonds that were due at the end of March
2016, as well as smaller outstanding loans
€10m tranche to finance the company’s growth plans
Refinancing Credit Facilities – Key Terms and Conditions
Source: Netbooster
Tranche A1 / B1 A2 / B2
Amount €5.35m / €5m €5.35m / €5m
Amount drawned €5.35m / €2.1m €5.35m / €2.1m
Product Euro PP Term Loan
Type Bullet Amortizing
Term 6 years 5 years and 9 months
Interest 6 Months Euribor (Floor: 0) + 4.3% 6 Months Euribor (Floor: 0) + 2.1%
Cash Impact Repayment: A1: 2022: €5.35m; B1: 2022: €TBD Repayment: A2: 2016: €0K, 2017-2021: €1.07m p.a. B2: €TBD
NB 12
Share Price and Trading Volume
Source: Netbooster
Capital Increase
On the 1st of September, NetBooster completed a 15% capital increase of 2,437,730 ordinary
shares, which were fully subscribed by Fonds Nobel, a private equity investment fund that is
owned and managed by Weinberg Capital Partners
The capital increase raised €5.3m in additional equity, which has been earmarked for further
international expansion, both organically and M&A led
0
100
200
300
400
500
600
1,5
1,7
1,9
2,1
2,3
2,5
2,7
2,9
05/10/2015 03/11/2015 02/12/2015 31/12/2015 29/01/2016 29/02/2016 29/03/2016 27/04/2016 26/05/2016 24/06/2016 25/07/2016 24/08/2016 22/09/2016
Vo
lum
e i
n T
ho
usa
nd
s
Shar
e P
rice
€
Share Price Volume
NB 13
20%
18%
14% 12%
12%
12%
8% 4%
Professional Services Fashion and Beauty
Travel Motoring
Property Education
4Ps Marketing Acquisition
London based agency established in 2008,
principally focussed on Search Engine
Optimisation (SEO), Paid Search and to a lesser
degree analytics, with around 70 employees and
circa 60 active clients
Unique opportunity to expand in Europe’s largest
digital advertising market and add a seasoned
management team with a proven capacity to
deliver and well connected in the industry
Acquired business has strong financials, an
efficient operational structure and fits culturally
with NetBooster. Moreover, it enables NetBooster
to better deploy existing resources within the
Group where needed
Deal was structured to ensure alignment of
interest and success
4Ps Industry Breakdown
NB 14
H1 Results
NB 15
Gross Margin evolution YoY by Region
Source: NetBooster
Gross Margin (I)
4795
2038
5046
3572
1212 760
4062
2329
6931
2805
1686
982
0
1000
2000
3000
4000
5000
6000
7000
8000
France UnitedKingdom
DACH NorthernEurope
SouthernEurope
MiddleEast
GM 2015 H1 GM 2016 H1
Gross margin was up 7.9% in H1 2016, coming
in at €18.8m versus €17.4m in H1 2015
The DACH region continued to be the largest
contributor geographically, increasing it’s share
from 29% in H1 2015 to 37% in H1 2016 and
accounting for €6.9m in GM. metapeople
Netherlands, acquired in Q3, 2015, added 3%
points to that increase
France retained second place, despite the
business suffering a year-on-year top line
decrease, with GM hitting €4.1m. The signs for
the second half look more positive
Southern Europe grew 39%, with the acquisition
of Media Diamond playing a big role in the jump.
GM contribution hit €1.7m
The Nordics lost ground to €2.8m, especially
due to restructuring in Sweden and Finland
The Middle East and UK continued to perform
extremely well, with growth of 39% and 14%
respectively, with the UK coming in at €2.3m
and the Dubai based entity at €1m
NB 16
2016 Gross margin Per product
Source: NetBooster
PPC continued to hold the mantle of largest
channel in the first half of 2016 increasing in
size by 9% year on year to €7.7m
Media and Social Media combined increased
by a massive 50% to hit €3.6m, with the
consolidation of Media Diamond playing a
significate role, but also the move up the value
chain into branding budgets showing up in the
H1 numbers
SEO grew by 18% and represented €2.4m,
with the Dutch acquisition adding to that
business, as well as good organic growth
Affiliate came off in line with the general fall in
the Nordics, where it is a key offering, whilst
data declined due to the end of the PSA
project
Gross Margin (II)
PPC 41%
SEO 13%
Media 15%
Data 12%
Affiliate 10%
Design 5%
Social Media
4%
NB 17
818
277
1507
-532
181
84
307
497
975
87
133
149
20%
12%
22%
-19%
11%
9%
6%
24%
19%
2%
11%
20%
-1 000 -500 0 500 1 000 1 500 2 000
France
United Kingdom
DACH
Northern Europe
Southern Europe
Middle East
EBITDA 2015 H1 EBITDA 2016 H1EBITDA by region
Source: NetBooster
EBITDA
France in particular saw a big rebound in
it’s profitability jumping from 6.4% to
20.1% in H1 2016 and delivering €0.8m in
EBITDA
DACH pushed EBITDA margins higher
too, going from 19% to 22%, with the
nominal amount hitting €1.5m for the first
half
The UK saw a decrease with margins to
12% and EBITDA hitting c. €0.3m on the
back of hereto flagged investment in
personnel due to growth
Southern Europe’s margins remained
stable at 11%, with the rise in the nominal
figure to c.€0.2m, owing to increased GM
The decrease in GM in the Nordics fed
straight through to the bottom line with
EBITDA going negative €0.5m. This is
expected to improve in the second half of
the year, as new clients and structural
changes take effect
Ebitda
margin
NB 18
Update Marketing
NB 19
2016 Focus Areas
1. Marketing Department | Establishing marketing as a true business function
2. Reach & Recognition | Global impact through consistent & coordinated global
marketing efforts
3. Visibility & Credibility | Through key activities:
• Events: 3rd Party & Hosting our own
• PR: Showcasing positive news & promoting consistently across all markets
• Content: Improving the frequency, quality and specificity of content
4. Brand Development | CVI, Positioning, Messaging & Brand Architectures
With NetBooster experiencing a fast recovery, Marketing
becomes a key focus area to support future growth.
NB 20
2015
22 Press Releases
161 Pieces of Coverage
FR 142 articles
DE 14 articles
UK 5 articles
PR Activity 2016
2016 (YTD)
21 Press Releases
10 Financial
11 Industry
314 Pieces of Coverage
FR 239 articles
DE 21 articles
UK 54 articles
Pipeline (until EOY)
8 Press Releases
NB 21
Headline Events During 2016
NB 22
Example: UK Announcement Promotions
Display
Paid Social
Media Coverage
Social
Videos
Internal Comms
Home Page Take Over | Marketing Week
Super Leaderboard | The Drum
Campaign Landing Page
Print Ads | The Drum & Marketing Week
NB 23
“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 on 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