Ebiquity Plc · LSE:EBQ
Ebiquity — FY2013 Earnings Presentation
29 slides from Ebiquity's earnings presentation, July 2013
Slide 1: Final results presentation Year ended 30 April 2013
Final results presentation Year ended 30 April 2013 July 2013 an Ebiquity company
Slide 2: Review of the year
Review of the year Year ended 30 April 2013
Slide 3: Headline growth underlines success of acquisition strategy
Our significant headline growth once again underlines the success of our acquisition strategy as we continue to build our global marketing leading capabilities in paid, earned and owned media analytics. 3
Slide 4: Continued growth delivered by strong recurring client base
Continued growth delivered by strong recurring client base • Total Revenue up 21% to £64.0m (2012: £52.9m) • Total underlying operating profit up 27% to £10.4m (2012: £8.2m) • Underlying operating profit margins increased from 15.5% to 16.3% • Underlying diluted EPS increased by 22% to 9p • Cash gen
Slide 5: Highlights
Highlights 1. Must Have Data 2.Advanced AdvancedAnalytics analytics 3.Independent IndependentInsight insight • Proprietary media buying data pool • Media buying measurement, • Unique independent positioning benchmarking and ROI outside agency workflow • Market leading advertising monitoring database
Slide 6: A year of operational focus creating unique global offering
A year of operational focus creating unique global offering • Successful integration of a number of business including FirmDecisions ASJP Group Limited and Fairbrother Lenz Eley providing a fuller integrated service accessible to all key territories • Acquisitions performing well: Echo revenues up 1
Slide 7: Global presence and expertise
Global presence and expertise • Approx 750 people worldwide • Operate from 17 global offices across 10 countries plus an extensive partner and ‘franchise’ network • Working with over 1,100 clients across multiple sectors including 87 of the Top 100 advertisers globally • 4 data centres: Newcastle (U
Slide 8: Financial Summary
Financial Summary Year ended 30 April 2013 8
Slide 9: Revenue
Revenue Year on year growth of 21% 2012 2013 Revenue £52.9m £64.0m • Total revenue up 21% (£11.1m) • £10.1m positive impact of acquisitions • 62% of revenue from Analytics division (2012: 53%) • 6% organic revenue increase in Analytics division (total group 3%) 9
Slide 10: Pro forma revenue
Pro forma revenue Year on year pro forma constant currency growth of 3% 70 +£1.1m 60 +£10.5m 50 40 £m 30 £52.9m £64.0m 20 10 0 2012: £63.4m 2013: £65.1m Reported Pro forma uplift • Analytics division revenue growth of 5% (total group 3%) • Acquisitions (all Analytics division) growing at similar rat
Slide 11: Renewals analysis
Renewals analysis High repeat business...strong client retention % renewable % renewal revenue rate* Analytics 80% 94% Platform 96% 93% Total 86% 93% 11 * by value
Slide 12: International revenue analysis
International revenue analysis Non UK-domestic revenues represent 77% of total revenue AsiaPac 8% US 13% Multi- territory Mainland 39% Europe 17% UK 23% 12
Slide 13: Underlying operating profit
Underlying operating profit Year on year growth of 27% 2012 2013 Op profit £8.2m £10.4m Margin 15.5% 16.3% • Total operating profit up 27% • 4% organic increase in operating profit • Margin increase largely driven by stable central costs EBITDA margin increased from 18.0% to 18.3% 13
Slide 14: Highlighted items
Highlighted items Reduction in acquisition related costs 2012 2013 Non recurring £1.9m £0.4m (cash) Recurring £2.7m £2.5m (non-cash) Total £4.6m £2.9m • Non-recurring: lower acquisition activity • Recurring: reduction in share option charges 14
Slide 15: Profit before tax and EPS
Profit before tax and EPS Strong growth in profit and earnings 2012 2013 Underlying operating result £8.2m +27% £10.4m Highlighted items (£4.6m) (£2.9m) Reported operating result £3.6m +108% £7.5m Net finance costs/associates (£1.0m)¹ (£0.9m) Reported result before tax £2.6m £6.6m Underlying result
Slide 16: Net debt analysis
Net debt analysis Comfortable level of debt funding 16 14 £7.4m £15.5m 12 £12.1m £7.5m Net 10 debt 8 £m £1.2m 6 £2.3m 4 2 0 Gross debt 18,353 22,636 Cash 6,190 7,109 Net debt 12,163 15,527 Gross debt/EBITDA¹ 1.7 1.9 Net debt/EBITDA¹ 1.1 1.3 16 ¹EBITDA based on 12m historic pro forma
Slide 17: Financial highlights
Financial highlights Strong year on year growth Revenue • Revenue up 21% to £64.0m Operating • Operating profit up 27% to £10.4m profit Margins • Operating margin up to 16.3% Earnings • Diluted EPS up 22% to 9.0p All profit and margin numbers are underlying (before highlighted items) 17
Slide 18: Outlook
Outlook 2013/14 and beyond 18
Slide 19: Outlook
Outlook 1. Good start to the year with continued high levels of recurring business 2. New product launches to support growth starting in September, including: 1. New drive into earned and owned media analytics through ‘Sonar’ 2. Significant update to Platform products 3. Build on strong performance
Slide 20: Well positioned for the future
Well positioned for the future • Unique database and media technology tools • Strong pipeline of significant new business contract opportunities • High level of revenue visibility • International client base supported by extensive in-country teams • Key clients deepen and widen their scope • Signifi
Slide 21: Appendices
Appendices Year ended 30 April 2013
Slide 22: Appendix: Year on year revenue analysis
Appendix: Year on year revenue analysis Organic Acquisitions Total Year ended 30 April 2012 49,269 3,650² 52,919 Organic revenue growth at constant currency 1,339¹ - 1,339 Foreign exchange movement on organic revenue (321) - (321) Full year impact of prior year acquisitions - 8,335² 8,335 Revenue fr
Slide 23: Appendix: revenue and client analysis
Appendix: revenue and client analysis 86% 77% Percentage of revenue from Percentage of revenue from renewable contracts international sources¹ 1,200 clients <4% 14% Percentage of total revenue Percentage of clients taking from our single largest client 2 or more services ¹ International sources defi
Slide 24: Appendix: Outstanding deferred consideration as at 30 April 2013
Appendix: Outstanding deferred consideration as at 30 April 2013 Previous financial year (11/12) 2012/13 Joined Up Media Faulkner Media Fairbrother Firm Company Management Lenz Eley Decisions Nature of business Media analytics Media analytics Media analytics Media cost in Russia/CEE in Australia/NZ
Slide 25: Appendix: Statement of financial position
Appendix: Statement of financial position April 2012 April 2013 Non current assets Goodwill 44,311 47,864 Purchased intangibles 11,864 11,970 Other 4,520 5,018 60,695 64,852 Current assets Trade debtors 13,818 13,890 Accrued income 4,447 6,014 Cash 6,190 7,109 Prepayments 1,696 1,589 Other 795 902 2
Slide 26: Appendix: Cash flow statement
Appendix: Cash flow statement 12m to 12m to 30 April 2012 30 April 2013 Cash generated from operations 2,493 7,526 Finance expense (527) (714) Income taxes paid (792) (1,582) Net cash from operating activities 1,174 5,230 Investing activities Acq’n of subsidiaries, net of cash acquired and disposal
Slide 27: Appendix: Summary of banking facility
Appendix: Summary of banking facility • £30m multi-currency facility in place from March 2012 on a 4 year term • Approx £25.5m drawn (£22.6m outstanding) • Approx £4.5m available • Interest rate of 2.75% plus LIBOR (can be lowered depending on covenants) • Analysis of repayment plan on outstanding b
Slide 28: Appendix: Cash and net debt analysis
Appendix: Cash and net debt analysis Cash Gross debt Net debt Opening at 1 May 2012 6,190 (18,353) (12,163) Trading cash flow 7,526 - 7,526 Interest and tax (2,283) - (2,283) Debt repayments (2,309) 2,309 - Drawdown for acquisitions 6,456 (6,456) - Payments for acquisitions (7,374) - (7,374) Capex (
Slide 29: Appendix: Shareholder analysis
Appendix: Shareholder analysis Name Amount % Holding VSS 15,109,549 25.03% Sarah Jane Thomson (Director) 7,603,787 12.60% Kabouter Management 5,907,468 9.79% Artemis Investment Management 5,444,900 9.02% Herald Investment Management 3,916,125 6.49% Blackrock 3,420,898 5.67% Other Directors Paul Adam