Team Internet Group Plc · LSE:TIG
Team Internet — CentralNic Group — FY2022 Earnings Presentation
28 slides from Team Internet's earnings presentation, Feb 27, 2023
Slide 1: Investor Presentation
Building a better global digital economy Investor Presentation 27 February 2023 “ Helping Online Consumers make ” informed choices
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. The information contained in this confidential document
Slide 3: CentralNic agenda
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 4: Refreshed management team
Refreshed management team New appointments ensure experience and continuity Michael Riedl, Group CEO • Promoted to Group CEO in December 2022 from previous role of Group CFO. Became Group CFO in 2019 following CentralNic’s acquisition of KeyDrive, where he had been CFO since 2011 • Strong financial
Slide 5: Recent Highlights
Recent Highlights Strategy of investing to drive growth is delivering results FT1000: Europe’s Partnership with Fastest Growing WHMCS Companies Refinancing of debt Appointed as preferred partner of Named by FT as one of top 250 New $250m Senior Facilities WHMCS, the leader in web hosting fastest gro
Slide 6: Record 60% Group organic growth for 2022
Record 60% Group organic growth for 2022 Strong value propositions make for strong growth $587m 86% 12.7 organic growth 4% $316m organic growth 55.1 574.7 $156m $149m -0.2 2.1 261.3 149.3 153.5 FY 2021 FY 2022 FY 2021 FY 2022 Pro-Forma Adjustment ($, m) Pro-Forma Adjustment ($, m) Reported Revenue (
Slide 7: Business profile
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 8: In Online Marketing, CentralNic helps online consumers make informed choices
In Online Marketing, CentralNic helps online consumers make informed choices – an evergreen purpose We do so by creating consumer journeys that convert general interest media 01 users into high conviction online consumers. We engage by offering contact points on social media, publisher websites and
Slide 9: Consumers on social media are run through brief consumer guides
Consumers on social media are run through brief consumer guides before being referred to a recommended merchant Social media user experience: CentralNic places ads An online consumer is The online consumer The online consumer The online consumer for broad categories on then forwarded an is then pres
Slide 10: Search engine users are directed to review websites before buying
Search engine users are directed to review websites before buying the product of their choice at an ecommerce partner Search engine user experience: CentralNic places ads for product The online consumer is then presented The online consumer then clicks out to categories on search engines. Due to a a
Slide 11: Online consumers value the noise reduction and privacy
Online consumers value the noise reduction and privacy – value is captured through commercial alliances CentralNic and its partners place a broad array of contact points Value Creation in the form of ads Value Capture Merchant pays Consumer Online consumers: CentralNic, engages with a Merchants: thr
Slide 12: In Online Presence, CentralNic is a leading distribution channel for domains
In Online Presence, CentralNic is a leading distribution channel for domains and one-stop shop for their users We provide the tools for businesses to go online Reseller Retail Enterprise Market features Access 2.5M SMBs via 250k in c.200 countries CUSTOMERS 20k customers • Subscription revenues • Hu
Slide 13: CentralNic creates a vibrant, symbiotic ecosystem
CentralNic creates a vibrant, symbiotic ecosystem FY22 value flows, Sankey presentation Native: 32% Social Media: 26% Search: 67% Cost of Sale OM: $450m Revenue OM: $575m Domains: 9% Total Revenue: $728m Search Ads: 7% Ecommerce: 6% Alternative Publishers: 5% Cost of Sale OP: $101m Affiliate Adverti
Slide 14: Segmental KPI evolution
Segmental KPI evolution demonstrates our ability to attract more consumers and extract more value Key volume and price quality metrics +37% Revenue per +5% Average thousand Revenue per 76.4 105.0 sessions ($) 9.45 9.88 domain year ($) 2% decrease 76% growth 4.6 12.6 12.3 2.6 FY 2021 FY 2022 FY 2021
Slide 15: Financial results
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 16: FY 2022 Financial Highlights
FY 2022 Financial Highlights Achieving record growth Gross Revenue Net Revenue Adjusted1 EBITDA $728.2m +77% $177.7m +50% $86.0m +86% FY 2021: $410.5m FY 2021 : $118.5m FY 2021: $46.3m Adjusted EPS Operating Profit Adjusted2 Cashflow ¢ 20.01 +70% $33.6m +172% $95.0m +69% FY 2021: ¢ 11.80 FY 2021: $1
Slide 17: Income Statement
Income Statement FY FY % ($, m) Revenue 2021 410.5 2022 728.2 Change 77% Revenue up by Cost of sales Net revenue (Gross profit) (292.0) 118.5 (550.5) 177.7 50% 77% Gross margin % 29% 24% and Adjusted EBITDA up Administrative expenses (101.1) (138.4) 37% Share-based payment expenses (5.0) (5.7) by Op
Slide 18: Balance sheet
Balance sheet FY FY % ($, m) 2021 2022 Change Non-current assets 271.8 365.1 34% Current assets 128.4 193.7 51% Total Assets 400.2 558.7 40% Non-current liabilities 149.1 192.0 29% Cash position improved over Current liabilities 137.1 199.6 46% 31 December 2021 Total Liabilities 286.2 391.6 37% Tota
Slide 19: Cash flow statement
Cash flow statement FY FY % ($, m) 2021 2022 Change Profit before taxation Adjustments for: 1.6 14.8 n.m Unadjusted cash flow from Depreciation of PPE 3.5 3.0 (15%) operations grew by Amortisation of intangible assets Finance cost (net) 18.3 10.8 36.4 18.7 99% 74% 99% Share-based payments 5.0 5.7 14
Slide 20: High cash conversion
High cash conversion Cash generation from operations = 110% Cash of Adjusted EBITDA 122% 110% Conversion (%) Testament to consistently high cash conversion FY FY Adjusted Cashflow Bridge: 2021 2022 Cashflow from operations 43.3 85.9 Exceptional costs 11.0 7.9 Settlement of working capital items 2.0
Slide 21: Profits improve with scale
Profits improve with scale 1 Overhead to plateau – staff cost increased due to 6 acquisitions between 1 January 2022 and 31 Δ FY2022 December 2022 new hires to accelerate organic ($,m) FY2021 FY2022 – FY2021 growth. Net revenue (gross profit) 118.5 177.7 59.2 1 Core operating expenses (72.2) (91.7)
Slide 22: Strategy and Outlook
CentralNic 01 Highlights 02 Business profile 03 Financial results 04 Strategy and Outlook
Slide 23: Strategic priority: creating a virtuous circle
Strategic priority: creating a virtuous circle Organic growth Operating leverage • New customer wins • Achieve cost savings in future periods by • Growing existing customers, and cross- continuing our integrations selling our services • We expect operational gearing to • Launching new products and c
Slide 24: Cashflow waterfall model aligns strategic priorities
Cashflow waterfall model aligns CentralNic’s strategic priorities Waterfall model To ensure compatibility among CentralNic’s strategic priorities, the Board intends to allocate the Group’s free cash flow as follows: 1. progressive dividend policy: given the Group’s maturity and resilience in volatil
Slide 25: Outlook & Summary
Outlook & Summary 1 Full year 2022 results demonstrate the strong Profits expected to improve performance, sustainability and potential of our marketplace model with scale in future years: • Significantly outperformed 2022 analysts’ 2 Future acquisition targets in line with our forecasts capital all
Slide 26: Environmental, social and governance (ESG)
Environmental, social and governance (ESG) Governing climate-related risks and opportunities: Group Carbon Reporting and Offsets: Board oversight of climate issues Group GHG emissions The Board establishes CentralNic’s purpose, vision and CentralNic Group Plc appointed ClimatePartner, a strategy wit
Slide 27: CentralNic recap
CentralNic recap Helping online consumers make informed choices 4.6bn ▪ A leading global internet solutions company, operating in two highly attractive markets: high-growth digital Online consumer advertising (Online Marketing segment) and domain name management solutions (Online Presence segment) e
Slide 28: Thank You
Ce. Thank You @®CentralNic Group PLC