Download Report

Welcome
to
Outlook 2015
13th November 2014
NB
Agenda
Overview
Offering
Financials
Key Solutions
Outlook
2
NB
Overview
3
NB
Company Overview
PPC (37%)
SEO (15%)
MEDIA (7%)
DATA (17%)
AFFILIATE (13%)
DESIGN (7%)
SOCIAL (2%)
4
NB
NetBooster Executive & Strategic Committee
Tim RINGEL
CEO (since July 2013)
Board of Directors
London
Vincent ADDED
CFO (since June 2011)
Executive Committee
Paris
Thomas ARMBRUSTER
COO (since July 2013)
Executive Committee
Paris
Natalie DUSEY
General Secretary (since 2013)
Executive Committee
London
Tim founded the metapeople
group in 1999 which became
part of NetBooster in 2011
Vincent joined the group in
2010 from Deloitte
In 2010 Tom joined the
metapeople group from UBS
Natalie has 10 years+ of
experience with listed and
international companies
Emmanuel ARENDARCZYK
Country Manager UK (2006)
Strategic Committee
London
Kristoffer EWALD
Head of DNA (2007)
Strategic Committee
Copenhagen
Yann GABAY
Head of South. Europe (2011)
Strategic Committee
Paris
Jens NIELSEN
Head of Nordics (2009)
Strategic Committee
Copenhagen
Joined from Google and has
worked in numerous
positions within the group
Kris merged his business in
2007 with NetBooster and
became the data specialist
Yann was MD of Performics
(FR) and has worked within
the industry since 14 years
Jens has 25 years of
international management
and consulting experience
5
NB
Employees by Country
6
NB
Client Structure
Top 10 (38%)
Top 25 (54%)
All other clients
 Total number of relevant clients: 300
 Balanced client structure without major dependencies
 65% out of the Top 25 are international
7
Portfolio of international blue chip clients
NB
Key Clients
 Client since 2009
 Products: PPC/
FB/SEO/CREA
 Markets:
Worldwide
 Client since 2007
 Products:
PPC/AFF/ANL
 Markets:
Germany
 Client since 2010
 Products: PPC/
AFF/SEO/FB
 Markets:
20 markets
 Client since 2012
 Products:
PPC/SEO
 Markets:
Worldwide
 Client since 2013
 Products:
DATA/ANL/CON
 Markets:
Worldwide
 Client since 2011
 Products: PPC
 Markets:
10 markets
8
 Client since 2012
 Products:
PPC/CRM/RTB
 Markets:
5 markets
 Client since 2008
 Products: SEO
 Markets:
UK
NB
Offering
9
NB
Product Split
PPC (37%)
SEO (15%)
MEDIA (7%)
DATA (17%)
AFFILIATE (13%)
DESIGN (7%)
SOCIAL (2%)

Search is the core product with the best cross selling potential

Data is already a significant part of the offering

Full product range established in all countries

Centre of competence (hubs) for key products (data, affiliate), to secure
standardized delivery, have been created

Facebook is a fast growing service (part of PPC)
10
NB
NetBooster Products
PPC (Google Ad-Words, Facebook Ads, Yahoo)
37%
of GM



Legacy Product, started in 2001
120 dedicated professionals across the entire NetBooster Markets
Product type: Media buying
Biggest Clients:
SEO (Search Engine Optimisation)
15%
of GM



Legacy Product started in 1998
60 dedicated professionals across the entire NetBooster Markets
Product type: Consultancy
Biggest Clients:
11
NB
NetBooster Products
Media (Display Advertising and RTB)
7%
of GM



RTB started in 2008
30 dedicated professionals across the entire NetBooster Markets
Product type: Media buying
Biggest Clients:
DATA (CRM, DMP, Analytics, Consultancy)
17%
of GM



Product started in 2012
50 dedicated professionals across the entire NetBooster Markets
Product type: Consultancy & Licence
Biggest Clients:
12
NB
NetBooster Products
Affiliate (Affiliate Agency & Affiliate Network)
13%
of GM



Product started in 2003
50 dedicated professionals across the entire NetBooster Markets
Product type: Media buying
Biggest Clients:
Social & Consultancy (Social Media Consulting)
2%
of GM



Product started in 2013
10 dedicated professionals across the entire NetBooster Markets
Product type: Consultancy
Biggest Clients:
13
NB
Financials
14
NB
EBITDA 2011 – Q3/2014
metapeople
NetBooster
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

With the acquisition of metapeople in mid 2011, the profitability was
boosted to a higher level

In 2014, the management team focused on streamlining the “old”
NetBooster business (excluding metapeople), in addition to increasing
profitability in all locations
15
NB
Profitability by Region
20%+
2012(a)
2013(a)
2014(e)
Germany
Germany
Germany
UK
UK
France & South
Nordics
MENA
15-20%
10-15%
France & South
France & South
Nordics
up to 10%
UK
France & South
Nordics
MENA
MENA
Before group overheads

16
MENA (established in 2012) will reach the targeted level in 2015
Aligned profitability in all regions
NB
Company Structure (end of 2014)
NetBooster
France
NetBooster
Finland
NetBooster
Denmark
NetBooster
Spain
17
NetBooster
Sweden
NetBooster
Italy
NetBooster
United Kingdom
NetBooster
MENA

Squeeze Out of the minority shareholders of
Guava A/S (9.51%) completed in October 2014

Integrate Guava UK into NB UK (end of 2014)

Integrate NB Affiliate Denmark into NB Denmark (end of 2014)

Reduced subsidiaries in Germany from 3 to 1

Establish NB Norway and NB Netherlands (Q1/2015)
metapeople
Germany
metapeople
Switzerland
NB
Additional Cost Savings

Squeeze Out Guava
 No more listing requirements due to delisting (e.g. audited annual report)
 Additional cost savings next year: €200k

Restructuring Germany
 Closed down NetBooster Germany
 Upstream merger metaapes GmbH / metapeople GmbH
 Additional cost savings next year: €100k

Restructuring UK
 Closed down Telford office
 Merge Guava UK and NetBooster UK
 Additional cost savings next year: €200k

Restructuring France
 Established more efficient structure
 Additional cost savings next year: €500k
18
€1.0m Savings in 2015
NB
New Biz 2015
Examples of secured new Business to be activated in 2015 and
following years:
FMCG Client
Finance Client
 A worldwide cosmetic
conglomerate
 A worldwide bank from Asia Pacific
 All Performance Channels incl.
Facebook AD‘s, Google AdWords
and RTB
 7 Markets incl. Germany, France,
Denmark, Spain, Italy, Switzerland
and UK
 All Performance Channels incl.
Facebook AD‘s, Google AdWords,
RTB and SEO
 Entire MENA region for Performance
Channels plus worldwide SEO
strategy
Majority of New Biz 2015 has already been secured
19
NB
Outlook for 2015

The management expects the business to grow by 5%. This
increase will be achieved with growing budgets from existing
satisfied clients and by winning new clients looking for a superb
offering. Majority of this new business has already been secured in
2014.

The management expects the profitability up to 16%. The
restructuring efforts completed in 2014 will show full effect in 2015,
in addition to further improvements, by growing the business and
leveraging the platform.

The management anticipates reaching a target EBITDA range
between €5.5m and €6.0m and NetBooster is well positioned to
establish itself as a full service digital agency for large companies.
20
Strong EBITDA growth
NB
Key Solutions
NB
Key market driver
 Traditional Advertising budgets are shifting to Digital, in addition to a
consolidation of channels and markets with one agency
 Transparency, Data and Analytics are at the centre of this shift due to
the demand of advertisers and their consumers
 Companies are searching for solutions on their digital strategy
because traditional consultancies and media agencies can’t deliver
new digital business models
 New channels like Facebook are rising and challenging the
dominance of Google in the digital advertising space
22
NB
DnA by NetBooster
Data and Analytics Product and Team





Launched in 2012 to influence the Tech-Strategy of
Clients
Managed by Kristoffer Ewald (Strategic Committee)
Part of the Data Offering of NetBooster
20 dedicated professionals across all NetBooster
Markets
Mainly a Consultancy (FTE based) and Licencing
Business (Licence-Fee‘s)
Landmark Client Project



Project signed in July 2013 for 2.5 years
First Phase is to integrate Google Analytics Premium in
1,500+ Websites on a worldwide level
5 FTE‘s permanently working on this project
NetBooster’s positioned in the centre of the clients digital strategy
23
NB
GroundControl by NetBooster
DMP Technology owned by NetBooster




Launched in 2014 to position data into the centre of our midsize-clients and to enable one consistent advertising message
across all devices and channels
Part of the Data Offering of NetBooster
5 dedicated professionals in France and Germany
Entry service for new clients and their Data needs as a well as a
loyalty service for existing clients
Landmark Client Project



24
GroundControl project signed in 2014
First Phase to integrate the GroundControl DMP to run smarter
and consistent advertising campaigns across all digital channels
2 FTE‘s permanently working on this project
NB
Audience Management & Machine Learning
Listen
Process
Talk
Web
Website
CRM
Mobile
Marketing
Social
Data
Management
Platform
Machine
Learning
Email
Connected
Objects
Integrated (de-duped) data sets
Services
Retail
Call Center
Realise the patterns in historical data
Open
Data
25
Learn the characteristics of each audience
Instore
Products
NB
Digital Strategy Consultancy
Development & Implementation of Digital

NB




Launched in 2014 to support our TOP 50 clients to develop,
implement and manage their digital transition strategy
Managed by Tim Ringel (CEO of NetBooster Group)
Developed due to client demand as the big consultancy firms and
Media agencies can‘t deliver digital business models
20+ team members consisting of the Executive Committee,
Strategic Committee and the NetBooster Country Managers
Mainly FTE Business for new clients and part of the daily offering
to existing clients to boost their digital revenue and targets
Landmark Client Project




Client signed in 2011
First Phase was to manage the client in D/A/CH on Search
Second Phase was to win the client in BE/NL/LUX/UK/ES
Third Phase is to develop the client across more digital channels
and support the digital transition of the business
NetBooster supports clients in their digital transition strategy
26
NB
Facebook ADs
New PPC Channel – Facebook ADs

NB



Launched in 2014 to mirror the AdWords PPC Service into the
new developed Facebook AD environment
Growing channel due to its Search-like performance on selling
products and activating customers
Commitment towards FB to spend €10m media budget in 2015
with 80% already secured in Q4/2014
FTE plus Performance Component agency fee model
Landmark Client Project




Client signed in 2011
First Phase was to run Deichmann’s Social Community
Management in multiple markets in 2011/2012
Second Phase was Social AD’s Fan-Building campaigns in 2013
Third Phase in 2015 running awareness and performance
campaigns across 20 markets
A new channel with expected exceptional growth
27
NB
Outlook
28
NB
SWOT Analysis

Good EMEA & MENA coverage


A working platform of 450+ people in place
with 20+ Offices
No coverage in Eastern Europe, LATAM
and US

Full Service Product Offering across all
Performance Marketing Channels plus
strong Data Offering
Limited top line growth due to profitability
focus in the last 18 months

Low trading volume, limited free float and
a low market cap is a handicap for the NB
share to on board more investors

Worldwide consolidation of client
budgets within one agency

Current shareholder base can only
support parts of the future growth

Digital is a highly competitive industry
for talent, NB might lose senior people


100% direct Client Contracts

Data offering adopted well and puts the
company into the center of the clients digital
strategy

Facebook is developing into a new lead
product and fuels the growth of the company

Clients are consolidating channels and
markets with one agency and NB is
positioned perfectly for that

TV will be the next performance channel and
that will fuel NB‘s growth and positioning
29
NB
Market Position
NetBooster
30
Well positioned to threaten the big six
NB
Management Outlook
Agency Vision
Financial Vision
 1,000+ employees
 € 150m+ Enterprise Value
 Strong footprint with local
offices in US, EMEA, MENA
and APAC by acquiring other
mid sized agencies
 € 500m+ managed
advertising budgets
 Focus on 400-450 large
national (40%) and global
clients (60%)
 € 80m+ Gross Margin (GM)
 20%+ GM/EBITDA ratio
 € 15m+ EBITDA
 Positioning of NetBooster as
the best, most innovative and
biggest worldwide
independent agency for
digital growth and transition
Product Vision
 NetBooster is positioned as
the lead consultant for digital
transition of Big Brands
 Full Integrated offering incl.
all digital ad-channels
 Strong focus on new digital
channels like Internet-TV
and Video Advertising
 Owned and 3rd party full
technology offering:
Analytics, DMP, DSP, CRM,
AD-Server etc.
Management Outlook for 2017+
31
NB
Strategic Options
 Based on the stability achieved, NetBooster is able to
develop from the biggest independent European performance
agency to the worldwide leader in this segment
 Part of the future plan of the financial structure is to use the
operating cash flows and a bridge loan to repay the
Convertible Bond in 2016 (if applicable)
 Management was mandated by the board to start discussions
with potential acquisition targets and potential partners to
evaluate strategic options
32
NB
Our Strategic
SUMMARY
NB
Strategic Summary
 Leading independent European performance agency with a
platform for global growth
 Full Service Product Offering across all Performance
Marketing Channels plus strong Data Offering
 Prepared to grow with the positive market momentum on
the back of the achieved profitability and scale
 Unique client relationship by moderating the big client’s
digital strategy
 Experienced management team with proven track record
34
NB
Thanks for your attention
www.netbooster.com
35
NB
Locations
36
NB
NetBooster covering Europe (i)
NetBooster
France
 Paris
 No of employees
126
 Clients: Bouygues,
Accor, Europcar
NetBooster
Spain
 Madrid
 No of employees 19
 Clients: Kymco,
Moon Media, Accor
37
metapeople
Germany
 Duisburg, Munich &
Hamburg
 No of employees
125
 Clients: Telekom,
DEVK, Deichmann
NetBooster
FInland
 Helsinki
 No of employees 17
 Clients: Sanoma,
Fixura
NetBooster
UK
 London & Cornwall
 No of employees 58
 Clients: Argos,
Accor , Nelly
NetBooster
Italy
 Milan & Rome
 No of employees 13
 Clients: Metro,
C&A, Accor
NetBooster
Denmark
 Copenhagen &
Aarhus
 No of employees 45
 Clients: Nestle, Sca
Baby care, Tena
NetBooster
Sweden
 Stockholm
 No of employees 10
 Clients: Rapunzel,
Lekmer, Lernia
NB
NetBooster covering Europe (ii)
metapeople
Switzerland
 Zurich
 No of employees 10
 Clients: Swisscom,
Holtelplan, Deindeal
38
NetBooster
MENA
 Dubai
 No of employees 9
 Clients: Emirates,
Standard Chartered
NetBooster
Norway
 Oslo
 No of employees 1
NetBooster
CHINA
 Shanghai & Hong
Kong
 Emirates, Huwaei,
Accor
 Minority
shareholding
NB
Share
39
NB
NetBooster Share
 Listed in Paris
 Share price: €2.41 (10.11.2014)
 Number of Shares: 15,519,639
 Market Cap: €37.4m
 Net Debt: €7.5m (June 2014)
 Enterprise Value: €44.9m
40
NB
Shareholder Structure
AFTER dilution
BEFORE dilution
TRUFFLE CAPITAL
20.1%
TRUFFLE CAPITAL
16.5%
PURE INVEST
18.4%
PURE INVEST
13.4%
ID INVEST
9.0%
MANAGEMENT
9.9%
metapeople POOL
5.4%
ID INVEST
6.5%
MANAGEMENT
5.0%
Convertible Bondholder 1
7.2%
ALLIANZ CAPITAL
4.7%
Convertible Bondholder 2
4.7%
metapeople Pool
4.0%
ALLIANZ CAPITAL
3.4%
List of dilution tools
 Shares out: 15,519,639
 Convertible Bond: +4,450,000 shares
 The management incentive (BSA): +1,175,000 shares
 Free shares out: +142,000
 Total number of shares after dilution: 21,286,639
41
NB
Disclaimer
“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.”
42
NB