eu analytics consultancy roll-up deck 21 july 2015

Project ZCreating a world-class, customer experience analytics & business

intelligence consultancy across Europe and beyond

Strictly Confidential

The Choice of Technology Products for Marketing & Analytics Is Wonderful, And…

Source: Chiefmartec.com Strictly Confidential

…Technology Spend Is Forecast To Explode between 2015 and 2025

Source: Chiefmartec.com Strictly Confidential

Plus Marketing Analytics Will See Tremendous Growth

Source: The CMO Survey, Aug 2014 Strictly Confidential

So What?


Analytics Consultancies Are Rising To The Challenge

Media Agencies

Professional Services, Commerce Services &

Systems Integrators

Analytics Consultancies

Are CleverlyFilling

ThisGap

Independent Analytics Consultancies

Thin

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Thin

layer of an

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integratio

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Technology Services

Industry Conferences

Software Products

Strategy Services

Data Services

What Do These Analytics Consultancies Do Exactly?

• Analytics & Intelligence Services• Primary focus is on multi-channel customer journey, experience and sales analytics for

acquisition, growth and retention

• Incl. customer/audience segmentation, conversion funnel analyses, executive reporting dashboards and more

• Systems Deployment & Integration Services• Including enterprise-wide implementation, configuration and maintenance of enterprise

multi-channel marketing & analytics systems e.g. Adobe Analytics, Google Analytics, Tealium, Signal, etc

• To advance outcomes from programmatic marketing, A/B testing, personalisation and analytics initiatives

• Data Strategy & Advisory Services• Including data architecture/collection design, marketing communications measurement

frameworks and technology strategy/adoption/optimisation

• Software Products• Custom algorithms, SaaS dashboards, attribution solutions and more

• Industry Conferences• The industry’s leading analytics practitioner & leadership conference was co-founded by

two gentlemen who are participating in this initiative


These Consultancies Live & Breath Systems Integrations for Real-Time SVC & Customer Value Creation

Website

Mobile App

Point-of-Sale

Email & Ad

DATA HUB(COLLECT)

MATCHING SERVICE(CONNECT)

LIVE AUDIENCE(ACT)

Cross-Channel

Data Collection

Cross-Channel

Identity Graph

Cross-Channel

Segmentation &

Rules Engine

ACTIVATION

INSIGHTS

CRM & Offlinev

• Enterprise Data Standardization (1:M)

• Platform for Browser/SDK/API data

capture

• Real-time data flow

• Customer focused

business rules

v v

• Hundreds of vendor

integrations

• Flexible data feed

• Open API platform

Tag Management

only lives here

Source: Signal

This is a top-level view of Signal’s pipes for cross-channel data collection, customer/audience identity management and segmentation, the data output of which directly supports 1.) a vast industry ecosystem of marketing communications solutions (aka Activation) and/or 2.) another vast group of analytics & insight products (aka Insights).


Analytics Consultancies are Trusted Partners to Brands & Retailers to Advance The Personalisation of Cross-Channel Customer Experiences

Source: PwC

Trusted relationships with C suite and analytics leadership

Trusted to deploy & optimise CX personalisation & testing solutions

Trusted partners to architect data collection framework, processes and integrated platforms


The Opportunity


Create An Analytics Services Powerhouse Across Europe and Beyond Because…

• All organisations globally are undergoing rapid and volatile technology-driven change• The measurement and management of marketing communications & customer experiences are especially in focus

• The analytics consultancies forming today have the skills, products & services to support these transformational industry and organisational changes i.e. clients need strong, dependable analytics services partners

• This new group will fill a valuable gap between professional services firms & marketing services/media agencies

• The market is totally fragmented and needs consolidation for stability & growth• 18+ analytics consultancies across Europe today• 4 founders/CEOs from Germany, France, Spain and the UK met with James Sandoval in London in January 2015

• Our target consultancies are projected to grow between 30% & 100% Y/Y for the next 5+ years • But none [alone] has the scale to service brands on a multi-market or global basis

• The potential for a strategically valuable, multi-market [eventually global] entity for rapid growth is real


Individual Analytics Consultancies Face Scale Challenges

• No/limited scale economies

• No strategic vendor relationships

• Very difficult or impossible to service multi-market or global clients

• No access to capital

• Too expensive to hire senior/experienced talent

• No strategic leadership for growth

• Economies of scale through [serial] acquisitions

• Leverage scale to secure enterprise-level commercial and service terms

• Multi-market presence to pitch & win regional and global RFPs/accounts

• Scale creates numerous opportunities

• Strategic investments in talent required

• Central and regional leadership drive growth strategy

Scale Challenges Roll-Up Opportunities


Several Roll-Up Synergies & Benefits, But Revenue Growth Is The Central Opportunity & Focus

• Revenue• Accelerate revenue growth with, yes, a sales force;

reaching €60 million by 2020

• Currently little to no direct selling today; majority of today’s sales via word of mouth

• Multi-market growth• Targeting a minimum of 50% of group revenue from

multi-market and global clients within 3 years

• The majority of current revenue is single market or regional

• Brand• Establish a unique brand & value propositions via a

multi-market footprint with unified products & services

• Minimise costs• Share sales, marketing and other costs

• Talent retention & growth

• Through new training & shared learning practices; cross-cultural, cross-border, cross-group

• Independence

• There is currently no independent, multi-market analytics consultancy group anywhere on planet earth like what we’re creating

• Access to growth capital

• To fund talent acquisition, further M&A activity, sales & marketing, etc

• And there are clients

• Clients benefit from the group’s amazing people and skills to advance customer experiences, customer relationships and customer value


The Numbers


All Analytics Services To Be A $20 Billion Market By 2017

Source: GP Bullhound 2014 Strictly Confidential

By 2020, The UK/EU [Digital] Analytics Consultancy Market Will Be Worth €500 Million +

Based on sample of 20 UK/EU analytics consultancies [in June 2015] growing top line revenue at conservative rate of 30% year-on-year, plus new entrants.


Initial Non-Cash Roll-Up Targets at €2.5M Rev in 2015

Consultancies

• Germany, 10 people, €1 million

• UK, 10 people, €1 million

• UK, 5 people, €0.5 million

Product Expertise Clients

Note: There is a small possibility that one more firm at 30 people and €2.5 million in top line revenue will join the roll-up at this stage.


3-Year Goal = €28M Gross Rev by Q4 2018

Consultancies


• UK, 10 people, €1 million

• France, 10 people, €1 million

• Czech Republic, 20 people, €1.5 million

• UK, 30 people, €3.5 million

• Spain, 30 people, €3.5 million

• USA, 30 people, €3.5 million


• Spain, 50 people, €5 million

Note: Several consultancies in other geographies under review

Product Expertise Clients


Longer Term Plan: 10 Consultancies, 6 Markets, 5 Years(start with 3 or 4 max in 2015/2016 and grow from there)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

1 2 3 4 5 6

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YEARS FROM 2015


€60+ Million In Roll-Up Revenue by 2020(10 Consultancies, 6 Markets, 5 Years)


Funding Requirement


~€15 million To Create A €100+ Million Powerhouse by 2020(10 Consultancies, 6 Markets, 5 Years)

Non-cash roll-up of

consultancies in UK & DE

€8-10 million to acquire

majority stakes in 4

consultancies in DE, FR, ES &

UK

€5 million to acquire

majority stakes in 3

consultancies in ES, CZ & US


Why Do This?


To Celebrating & Value Tremendously Talented People

• By creating a unique and formidable culture of innovation, knowledge-sharing and customer value across markets• Vastly more valuable to be on the same team versus simply in the same community

• Establish Europe’s first and only integrated network of analytics consultancies• Uniquely made up of the industry’s best customer experience and commerce-centric

analytics and conversion rate optimisation practitioners & leaders

• And to create tremendous shareholder value• If we execute well (i.e. carefully choose organisations to bring into the group, integrate

exceptionally well, collaborate productively and demonstrate market leadership) we can grow and return value to shareholders in multiple ways


The Market Is Very Acquisitive


If you want to build a ship, don't drum up people to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea.

Antoine de Saint-Exupery

The Saint-Exupery Quote Isn’t So Confidential ;-)

(Said another way, the success of this analytics consultancy idea will come from our collective belief that the vast market opportunity to provide excellent work that delights clients, and to reap the rewards of those relationships, are best converted together).

ConfidentialSource: Econsultancy, The Promise of First-Party Data, June 2015

eu analytics consultancy roll-up deck 21 july 2015

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