Cliq Digital Ag · XETR:CLIQ
Cliq Digital — Shareholder Meeting (April 2023)
74 slides from Cliq Digital's shareholder meeting presentation, Apr 6, 2023
Slide 1: Annual General Meeting
Annual General Meeting Düsseldorf, April 6th 2023
Slide 2: Opening & Welcome by the Chairman
Opening & Welcome by the Chairman
Slide 3: Presentation of the approved annual financial statements
1. Presentation of the approved annual financial statements of Cliq Digital AG and of the approved consolidated for the year ending on 31 December 2022, of the group management reports, and of the report of the supervisory board
Slide 4: Nathalie Nijhuis-Lam
Nathalie Nijhuis-Lam CLIQ’s engine and growth path is fueled by our marketing spend: In 2023, the company expects to spend at least €120 million on marketing. Having a profound and outstanding marketing expert in our Supervisory Board creates substantial value to our Board and to the company as a wh
Slide 5: Nathalie Nijhuis-Lam
Nathalie Nijhuis-Lam • 2 Kids • Studied in Leiden, Netherlands & Montreal , Canada • Worked for multiple A-Brand companies and advertising agencies 5
Slide 6: Experience
Experience 1. Board member experience 2. Customer-centric thinking 3. Collaborate with international markets 4. Change management expertise 5. Launch of new marketing propositions 6
Slide 7: Accomplishments in the Industry
Accomplishments in the Industry 1. Red Bull Stratos campaign - collaboration with broadcasters Free content during the National News high rate of international eyeballs 2. Most established advertising award 2 Lion awards for advertising campaigns 3. Board of Advertisers (BVA) Lead a change managemen
Slide 8: How I Add Value
How I Add Value 1. Use my 360 commercial marketing expertise 2. Leverage my global market leadership experience 3. Continous strategic analyses of the running activities of CLIQ 8
Slide 9: Presentation of the approved annual financial statements
1. Presentation of the approved annual financial statements of Cliq Digital AG and of the approved consolidated for the year ending on 31 December 2022, of the group management reports, and of the report of the supervisory board
Slide 10: Annual Report 2022
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Slide 11: Vision Mission
VISION MISSION At CLIQ Digital, we believe We bring simplicity to the streaming streaming content should be market by creating all-in-one streaming accessible to everyone. services that go beyond one content category.
Slide 12: Our Approach
Our Approach LICENSING We license streaming content from partners across multiple categories, ranging from movies & series, music, audiobooks to sports and games. At CLIQ We sell subscription-based BUNDLING streaming services that bundle We store, bundle and curate digital content. Within movies & s
Slide 13: Strategic Focus
Strategic Focus Flagship service Cliq (cliq.de) Numerous streaming services
Slide 14: cliq.de
The New Kid on the Block: cliq.de Cliq is our flagship streaming service. Our aim: • To become the best value-for-money proposition in the streaming industry in Germany • The internal target is to break even on gross margin in 12 to 18 months
Slide 15: Our Numerous Streaming Services
Our Numerous Streaming Services Core of our unique business model and distinguishing feature from competitors (streaming providers & online advertisers) In a nutshell: • Unique bundled streaming service proposition • Use of multiple categorised marketing URLs for online advertising • Profitable gros
Slide 16: What makes CLIQ as a Company Different?
What makes CLIQ as a Company Different? Service offering 1) Bundled streaming service proposition vs. single-content category 2) In-house online advertising experts vs. outsourced 3) Only licensed content vs. own production of content 4) Numerous streaming services vs. one streaming service KPI to m
Slide 17: What do you sell?
People are often asking us: What do you sell?
Slide 18: Let's dive into our operations!
Let’s dive into our operations!
Slide 19: Numerous Streaming Services
Numerous Streaming Services Single Content Services Bundled Content Services
Slide 20: Single Content Services
Single Content Services
Slide 21: Single Content Services
Single Content Services (c.10% of FY 2022 revenues) 300+ content portals • For example, WizzGames offers our customers a unique entertainment experience by offering the best in Games for mobile phones per mobile carrier. • Given our history since 2003 and origins in the mobile industry, we have prom
Slide 22: Single Content Services: Sign-up Flow
Single Content Services: Sign-up Flow (c.10% of FY 2022 revenues) Banner Step 01 Step 02 Content Portal
Slide 23: Single Content Services: Sign-up Flow
Single Content Services: Sign-up Flow (c.10% of FY 2022 revenues) Banner Step 01 Step 02 Content Portal
Slide 24: Single Content Services: Sign-up Flow
Single Content Services: Sign-up Flow (c.10% of FY 2022 revenues) Banner Step 01 Step 02 Content Portal
Slide 25: Single Content Services: Sign-up Flow
Single Content Services: Sign-up Flow (c.10% of FY 2022 revenues) Banner Step 01 Step 02 Content Portal
Slide 26: Single Content Services: Content Portal
Single Content Services: Content Portal (c.10% of FY 2022 revenues) Enjoy gaming! Browse content portal Game detail page Time to play
Slide 27: Bundled Content Portals
Bundled Content Portals
Slide 28: Bundled Content Services
Bundled Content Services (c.90% of FY 2022 revenues) 25+ content portals There are two kinds of content portals: a) Live and actively promoted portals: open for new members to sign up to b) Non-promoted portals: our existing members using the content portals
Slide 29: Bundled Content Portals: Sign-up Flow
Bundled Content Portals: Sign-up Flow (c.90% of FY 2022 revenues) 1 2 3 Banner Landing page Sign-up 4 5 6 3D Secure Payment Page Welcome E-mail Content Services
Slide 30: Bundled Content Services: Banner
Bundled Content Services: Banner (c.90% of FY 2022 revenues) 1 €112 million marketing spend in 2022 to utilise the power of advertising platforms, such as Google, Facebook, YouTube and other advertising platforms to find the best-matching target audiences. This led to worldwide 15.5 billion online b
Slide 31: Bundled Content Services: Landing Page
Bundled Content Services: Landing Page (c.90% of FY 2022 revenues) 2 2 In 2022, we sparked the interest of almost 323 million people to click on our continue button of our numerous streaming service landing pages.
Slide 32: Bundled Content Services: Sign-up
Bundled Content Services: Sign-up (c.90% of FY 2022 revenues) 3 In 2022, almost 87 million people submitted their email address and password to start their interest in our all-in-one streaming services, including a free trial period.
Slide 33: Bundled Content Services: Payment Page
Bundled Content Services: Payment Page (c.90% of FY 2022 revenues) 4 The 3D-Secure payment page guarantees a safe and easy payment procedure. Each paid membership always has an active multi-step opt-in flow in place prior to subscription, numerous opt-in security measures and a clear confirmation of
Slide 34: Bundled Content Services: Welcome Email
Bundled Content Services: Welcome Email (c.90% of FY 2022 revenues) 5 After signing up, you’ll receive an e-mail confirming your membership, the terms and conditions and customer care details. We do all content licensing, portal infrastructure and promotions online via numerous CLIQ entities since o
Slide 35: Bundled Content Services: Content Portal
Bundled Content Services: Content Portal (c.90% of FY 2022 revenues) 6 Let’s surf through the content together!
Slide 36: Content Partners
Content Partners Movies & series Music Audiobooks Games Sports
Slide 37: CLIQ's External Partners Explained
CLIQ’s External Partners Explained • For billing and customer care we work with OUR EXTERNAL BUSINESS PARTNERS who are experts in their field. • All over the world, we work together with billing payment experts who operate with different entities and diverse merchants. • Next to our CLIQ customer ca
Slide 38: Our Top 3 Complaints: Customer Care
Customer Care We also get complaints. To service our members, we operate an expert customer service team, which can be reached via the following channels: Email Live chat Social media community Phone helplines management 1. Customer claims a minor subscribed. Our Top 3 Complaints: 2. Customer reques
Slide 39: Complaints
Complaints Trustpilot is clearly a website mostly used by users to complain. Also, big & known players like Netflix, HBO and Amazon receive a low rating. In perspective: • Red27 on Trustpilot has 218 reviews on 4.3 million members acquired since 2020 • Complaint rate of 0.00507%
Slide 40: URLs
URLs We don’t share our URLs because we consider them to be a company secret and are therefore confidential information Both marketing and service URLs are confidential information. If we would disclose them our competitors will be able to see on which domains our advertising banners are shown, allo
Slide 41: Paid Memberships
Paid Memberships Paying their weekly/monthly membership fees CLIQ and its external business partners having PSP transaction and reporting system = total transaction volume = 1.9m paid memberships Internal Business Intelligence Reporting (per 31/12/22) Having access to content portals = Revenue recei
Slide 42: Revenue All URLs
Revenue All URLs Single and bundled streaming services, promoted and non-promoted portals Next to the future revenue generated by its 1.9 million paid memberships, live and active promoted streaming services bring in new members and thus revenue. 1.9 million paid memberships at the end of 2022 are e
Slide 43: Explanatory movie: customer journey
Explanatory movie with regards to the customer journey, from banner to content portal:
Slide 44: Click to watch the video
Click to watch the video
Slide 45: cliaq_ clia
cliaq_ clia
Slide 46: Cliq Brand Marketing
Cliq Brand Marketing We entered the German market in December 2022 with our flagship service Cliq, creating brand awareness with TV spots and DOOH advertising during 2Q 2023. Our aim is: • Generating 500 million impressions by end of 2Q • Reaching 65% of all Germans aged between 18-64 by end of 2Q
Slide 47: Click to watch the video
Click to watch the video
Slide 48: Let's scroll through cliq.de together!
Content Portal Let’s scroll through cliq.de together!
Slide 49: Financials
FINANCIALS
Slide 50: Growth Story | Four-Year Overview
Growth Story | Four-Year Overview Marketing spend Sales EBITDA % EBITDA margin in millions of € 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 83 77 64 53 47 33 40 30 30 30 30 30 30 27 23 18 20 20 17 14 15 14 12 13 10 9 12 10 8 9 8 7 8 8 5 5 7 6 5 5 5 6 2 2 4 1 1 2 8
Slide 51: Sales Breakdown
Sales Breakdown | (in % of total sales) BY SERVICE BY REGION €276m NORTH AMERICA €276m BUNDLED CONTENT 3% 1% SINGLE-CONTENT EUROPE 5% 9% AD-FUNDED DIGITAL REST OF WORLD MARKETING SERVICES* LATIN AMERICA 37% €150m €150m 7% 8% 21% 88% 42% 57% 72% 50% 2021 2022 2022 2021 2022 2022 *Following a strategi
Slide 52: More Marketing, More Members, More Sales
More Marketing, More Members, More Sales Marketing spend Lifetime Value of Customer Base Number of members x Remaining lifetime value per member 6M-Profitability Index Customer Base (number of paid memberships) €141m €112m €87m 1.9m €54m 1.45x €50m 1.3m €38m €34m €22m 1.59x 0.9m 1.68x 1.51x 0.6m 201
Slide 53: 2022 | Income Statement
2022 | Income Statement in millions of € 2022 2021 Δ Sales 276.1 150.0 84% Cost of sales -201.3 -98.8 Gross Margin 74.8 51.2 46% Personnel expenses -20.7 -18.0 Other operating expenses -10.6 -6.0 EBITDA 43.5 27.2 60% margin 16% 18% Depreciation & amortisation -1.4 -0.9 EBIT 42.1 26.3 60% Financial r
Slide 54: 2022 | Marketing Costs
2022 | Marketing Costs in millions of € 2022 2021 Δ Marketing spend 112.3 54.4 106% Capitalised marketing spend –107.5 -47.0 (contract costs) Amortised contract costs 85.0 37.5 Marketing costs 89.8 44.9 100% in % of total sales 33% 30% ▪ Increase in paid memberships is the result of increased market
Slide 55: 2022 | Cash Conversion
2022 | Cash Conversion in Millionen € 2022 2021 EBITDA 43.5 27.2 Net Debt / Cash Position ∆ Contract costs -22.5 -9.5 ∆ Other working capital 4.5 8.3 Taxes, financial result & others -1.7 -5.2 €9.9m Cash flow from operating activities 23.8 20.8 Cash flow from investing activities -8.4 -4.8 2019 €0.9
Slide 56: 2022 | Balance Sheet
2022 | Balance Sheet ASSETS in millions of € 31/12/2022 31/12/2021 EQUITY & LIABILITIES 31/12/2022 31/12/2021 Goodwill 47.4 48.2 Equity 81.3 59.6 (In)tangible & financial assets 15.3 7.9 Deferred tax liabilities 10.5 4.1 Contract costs 39.6 17.1 Bank borrowings 6.6 5.0 Deferred tax assets 1.6 2.6 Ot
Slide 57: Dividend Yield
Dividend Yield 7.1% 4.5% 3.9% 3.0% 2.9% 2.8% 2.7% 2.7% 2.3% 2.1% 1.4% 1.2% Source: Bloomberg, 2023 CLIQ Digital AG DAX MDAX SDAX 2020 2021 2022 • In 2022, CLIQ delivered a significantly better dividend yield than the DAX, MDAX and SDAX: 7.1% dividend yield based on the 2022 year-end closing price •
Slide 58: 10-Year Share Price Development
10-Year Share Price Development in % 700 CLIQ DIGITAL AG Germany SDAX 600 SCALE 30 Performance MSCI WOLD Micro Cap Index 500 400 300 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Nasdaq, 2023 • 2022: CLIQ‘s share price performance (+2%) outperformed all relevant benchmark indic
Slide 59: Outlook
OUTLOOK
Slide 60: Outlook | Sweet Spot Niche
Outlook| Sweet Spot Niche CLOUD- SVOD GAMING +46% 2022 +11% CAGR CAGR 2022 2027 2022 2030 MUSIC GLOBAL DIGITAL MEDIA AUDIOBOOKS STREAMING +7% CAGR $493bn +27% CAGR 2022 2022 2030 2022 Revenue in 2027 Statista Digital Media Report 2022 LIVE SPORT MOVIES & SERIES STREAMING Verified Market Research, +1
Slide 61: Outlook | Growth Drivers
Outlook | Growth Drivers Market Development Business Development Strong market growth for streaming services More marketing by own media buying team Improving and adding content, such as podcasts and more Growing demand for affordable streaming services kids’ content On-demand consumption of content
Slide 62: Outlook | 2023
Outlook | 2023 Main organic growth drivers in millions of € 2019 2020 2021 2022 2023e Internal: Sales 63 107 150 276 >345 ▪ Increased marketing spend Marketing spend 22 34 54 112 >120 ▪ Broaden targeting options ▪ New advertising platforms, media sources and EBITDA 6 16 27 44 >50 exchanges ▪ Latin A
Slide 63: Questions
Questions
Slide 64: Resolution on appropriation of the net profit for 2022
2. Resolution of the appropriation of the net profit for the fiscal year 2022
Slide 65: Resolution on approval of actions of the management board
3. Resolution on the approval of the actions of the members of the management board for the fiscal year 2022
Slide 66: Resolution on approval of actions of the supervisory board
4. Resolution on the approval of the actions of the members of the supervisory board for the fiscal year 2022
Slide 67: Resolutions on appointment of the auditor for 2023
5. Resolutions on the appointment of the independent auditor and the group auditor for the fiscal year 2023
Slide 68: Resolution on the election of a supervisory board member
6. Resolution on the election of a supervisory board member
Slide 69: Resolution on amendment of supervisory board remuneration
7. Resolution on the amendment of the remuneration of the supervisory board members and respective changes to the articles of association
Slide 70: Resolution on changes to the articles of association
8. Resolution on changes to the articles of association
Slide 71: Resolution on conversion of bearer shares into registered shares
9. Resolution on the conversion of bearer shares into registered shares and respective changes to the articles of association
Slide 72: Resolution on change of section 18(2) of the articles of association
10. Resolution on the change of section 18(2) of the articles of association (Participant’s Rights)
Slide 73: Disclaimer
DISCLAIMER This presentation is for information purposes only and does not constitutes a public offer to buy or sell or a public call for the purchase or sale of CLIQ Digital AG securities. Neither this presentation nor any other content of this presentation constitute the basis for the conclusion o
Slide 74: Let's level up together in 2023!
Let’s level up together in 2023!