Reworld Media Sa · EURONEXT:ALREW
Reworld Media Sa — Investor Presentation (February 2017)
26 slides from Reworld Media Sa's investor presentation, Feb 2, 2017
Slide 1: Investor Presentation - 2 February 2017
Investor Presentation - 2 February 2017
Slide 2: Entrepreneurial and digital culture; growth; international development
ENTREPRENEURIAL AND DIGITAL CULTURE • Successful acquisitions of magazine titles (Axel Springer, Lagardère) • Controlling stake in TradeDoubler (30%, 3 seats on the board) • Proven expertise to successfully restructure and migrate media assets digitally GROWTH AND MONETISATION OF DIGITAL AUDIENC
Slide 3: Founders and group structure
• Former chairman at Netbooster • Former CEO of La Tribune, (Alternext Paris ALNBT), Director of Head of Projects at NextRadio Prosodie (now Cap Gemini) in London TV, and notably secured the and Chairman of CPI Venture. purchase of La Tribune from • Currently Co-Chairman of Network LVMH. Finance and
Slide 4: Acquisition of established magazine brands and digital marketing performance
Acquisition of established magazine brands and Digital Marketing Performance cross-over e-commerce extension with Tradedoubler 2012 Acquisition by 2015 Acquisition from Lagardère Acquisition of 19% stake consortium led by Group of Be, Pariscope, Maison in Tradedoubler Pascal Chevalier & & Travaux, e
Slide 5: Media branding and media performance at a glance
• 12 magazine brands • Digital marketing partner for • 3 clusters: Women, Lifestyle, o 2000+ advertisers Entertainment o 180,000 publishers • €60 revenue in 2015 • Leading technology solutions • 69 countries • €140m revenue in 2016 REWORLD MEDIA EN BREF MEDIA BRANDING MEDIA PERFORMANCE RESULTATS 201
Slide 6: Unique combination of know-how for digital advertisers
Unique combination of know-how for digital advertisers Increase visibility Increase sales Build up brand Strengthen distribution • Print advertisement • Big Data on Leads • Web & mobile display • Affiliation & retargeting technologies • Distribution network • Strong ROI for advertisers REWORLD MEDIA
Slide 7: Reworld Media is addressing 60% of a €22bn advertising market
Reworld Media is addressing 60% of a €22bn advertising market* Search (Google) 20% 7% 7% 26% 40% Branding Affiliate Public Affiliate private Other performance marketing BRANDING PERFORMANCE MARKETING Main Objective Visibility, brand construction ROI : Audience, leads, sales KPI Public exposure, memo
Slide 8: Women, Lifestyle, Entertainment brands
Established brands generating recurrent traffic, with a focus on digital re-deployment and international appeal • Massive audience progression since takeover (x7) Women • International redeployment with focus on Asia: Be and Marie France: 1st in Singapour • 2nd most significant audience progression
Slide 9: Brand audience rankings and digital traffic
3rd auto website in France in the Top 10 of women magasines in the Top 5 for Decoration / DIY 6 000 vidéos 15m subscribers to newsletters en catalogue X 2,5 (monthly average) REWORLD MEDIA EN BREF MEDIA BRANDING MEDIA PERFORMANCE RESULTATS 2016 9
Slide 10: Leading partner of advertisers' marketing departments
Leading partner of advitisers’ marketing departments 41 2 000+ 180 000 140 M€ MILLIONS Clients Affiliated websites Triggered sales 2016 revenues Product Offering Target existing and new TD ENGAGE uses behavioural data to target customers customers with relevant advertising for clients TD CONVERT ena
Slide 11: H1 2016 revenue breakdown by country
o S1 2016 Revenue Breakdown : 33% United Kingdom, 22% France, 21% Nordic Countries, 13% Germany, 11% Italy and Spain o 11 international sites in 10 countries Germany, UK, France, Spain, Italy, Holland, Singapore, Sweden, Switzerland, Brazil and a network covering 69 countries REWORLD MEDIA EN BREF M
Slide 12: REWORLD MEDIA EN BREF MEDIA BRANDING MEDIA PERFORMANCE
REWORLD MEDIA EN BREF MEDIA BRANDING MEDIA PERFORMANCE RESULTATS 2016 12
Slide 13: Commercial focus and growth priorities
o • Commercial focus on higher margin products • Sustained investments in new technologies: ‒ Extension of product range, increased market coverage ‒ Consolidation in affiliation, acceleration in re-targeting • Strategic partnerships and acquisitions : video & mobile • Increased global coverage, ew
Slide 14: 2016 revenues: critical international scale reached
2016 REVENUES: CRITICAL INTERNATIONAL SCALE REACHED Pro-forma 2016 revenues expected to reach c.€200m (unaudited), including the consolidation of Tradedoubler revenues on a full year basis. GROUP PROFITABILITY EXPECTED TO PROGRESS SHARPLY On the back of Tradedoubler’s published results and with
Slide 15: Back on a growth path, gross margins improving
Back on a growth path, gross margins improving • 10% revenue growth in Q4 2016 vs. Q3 2016 • Rising gross margin (+1.3% vs. 2015) driven by 1) restructuring of clients portfolio and 2) launch of TD Engage (Retargeting) in the UK, Germany. Strong profitability rebound in 2H16 • 2H16 EBITDA at €1.6m v
Slide 16: 2016 P&L: EBITDA €1.1m
EBITDA : €1,1 (+€2,3m) • Decline in revenues now controlled towards stable levels P&L en €m(*) 2016 2015 Var % • Gross margin progress(+1.3pp) Revenues 140.0 165.1 -15.2% • Lower fixed costs (-€5,6m) Gross Profit 31.1 34.4 -9.8% Gross margin (%) 22.2% 20.9% +1.3pp EBIT : -€3,6m (+€9,1m) Fixed costs
Slide 17: Share Price Reworld Media
Share Price Reworld Media (€) o Share price: €1,64 - 1st February 2017 2.1 o Alternext since 16/06/14 1.9 o ISIN : FR 001082027 1.7 o MNEMO : ALREW 1.5 o TICKER Bloomberg : ALREW FP 1.3 1.1 o Share capital breakdown 0.9 Free 0.7 Founders Float 22% 24% 0.5 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Ju
Slide 18: H1 2016 Results; Case studies
o Reworld Media : H1 2016 Results o Case studies : Auto-Moto, Marie-France
Slide 19: Strong revenue growth in H1 2016
o Strong revenue growth thanks to: • Organic digital sales increase • Tradedoubler consolidation starting from the 1st of March 2016 Consolidated sales (M€) 77,3M€ x 2,5 Tradedoubler "Media performance" 47,1M€ Historic perimeter "Media Branding" 30,1M€ 30,2M€ S1 - 2015 S1 - 2016 19
Slide 20: Media Branding: stable revenues at €30.2M
Stable revenues at €30.2M BUT Media Branding Turnover evolution (€m) o 37% turnover increase from 30,1€M 30,2€M digital* in Media Branding • Exclusively organic growth 3,5€M 4,8€M • Succesful diversification strategy of Media brands • Efficient monetisation of fast- growing audiences 26,6€M o Small
Slide 21: Consolidated revenue breakdown
Consolidated revenue Consolidated revenue breakdown (30/06/2016) Media branding print Media branding digital Media performance Media performance 32.9% Media branding 47,1€M 51,9€M 60.9% digital Print 6.2% 3,5€M 4,8€M « Media Performance » + S1 - 2015 S1 - 2016 « Media Branding Digital » = €52m of tu
Slide 22: EBITDA evolution
EBITDA Evolution o Media Branding (historic scope) Total consolidated Media Performance • EBITDA increase from €0.5M to €1.1M Branding Digital Branding Print • Profitability of historic digital activities (*) • Profitability of Print Media maintained despite a declining market 1M€ -0,1M€ S1 - 2016 0
Slide 23: Income statement and balance sheet H1 2016
Income Statement o Operating profitability driven Audited, in M€ S1 2016 S1 2015 by digital shift of revenues Revenues 77,26 30,13 and on-going restructuring EBITDA 1,0 0,5 benefits Allowances to depreciation and reserves -1,26 -0,36 o One-off restructuring charges Operating Income - 0,26 0,14 impac
Slide 24: Auto-Moto: print-only to #2 digital automotive brand
Acquisition from Lagardère Successful Brand Refocus and Digital Turnaround Print-only #2 digital Media Automotive brand in France Website makeover • Print magazine business without digital footprint €3m Cost-cutting 2016 EBIT +0,5M€ • No digital Traffic x4.5 in the last 12 months monetisation • 2014
Slide 25: Marie France: #1 audience in Singapore
Acquisition from Axel Springer Successful Brand Refocus and Digital Turnaround Print-only Website & #1 audience in Singapore mobile app (Women media, June 2016) creation Best feminine Media New magazine Digital in Asia-Pacific formula Newsletter & social network presence • Symbolic price for develop
Slide 26: Reworld Media Group contacts
REWORLD MEDIA GROUP Investor Relations 16 rue du Dôme David Chermont 92100 Boulogne Billancourt [email protected] Tél : +33 (0)1 74 31 36 36 Frédéric Portier [email protected] [email protected] Listing Sponsor Communication Contact : Julia Bridger Ségolène de St Martin -
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