fyber nv annual report 2016 results presentation vsent · set out in 2014/2015 › transformed...
TRANSCRIPT
RESULTS PRESENTATIONFY 2016
31 July 2017
AGENDA
2
01 02 03Operational Highlights
Financial Highlights
Outlook & Strategy Update
2
Andreas Bodczek Heiner Luntz Ziv Elul
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“These materials may contain forward-looking statements based on current assumptions and forecasts made by FyberN.V.’s management and other information currently available to Fyber N.V. By their nature, forward-looking statementsinvolve a number of risks, uncertainties and assumptions that could cause actual results, performance or events to differmaterially from those expressed or implied by the forward-looking statements. Statements contained in these materialsregarding past trends or events should not be taken as a representation that such trends or events will continue in thefuture. Neither Fyber N.V. nor any other party is under any duty to update or inform you of any changes, whether as aresult of new information, future events or otherwise, to the information in these materials.
Certain market data and financial and other figures (including percentages) in these materials were rounded inaccordance with commercial principles. Figures rounded may not in all cases add up to the stated totals or the statementsmade in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than thecommercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviatefrom percentages based on rounded figures. The financial information relating to the Group contained in this documenthas not been audited or reviewed.
No reliance may be placed for any purposes whatsoever on the information contained in this document or on itscompleteness. No representation or warranty, expressed or implied, is given by or on behalf of Fyber N.V. or any of itsaffiliates, directors, officers or employees, advisors or any other person as to the accuracy or completeness of theinformation or opinions contained in this document, and no liability whatsoever is accepted for any such information oropinions or any use which may be made of them. This document does not constitute an offer to sell, or a solicitation of anoffer to buy, any securities.”
DISCLAIMER
Operational Highlights01
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FYBER TODAY –GLOBAL ADVERTISING TECHNOLOGY POWERHOUSE
5
DELIVERED ON M&A CENTRIC GROWTH STRATEGY SET OUT IN 2014/2015› Transformed holding RNTS Media into a deep-stack ad tech
infrastructure provider Fyber
MILESTONES ACHIEVED IN 2016 AND 2017YTD› Closed two further acquisitions› Outgrew the market at +69% in PF gross revenues FY2016› Q2 2017: adj. EBITDA profit of more than €1.2m› Confirmed guidance for 2017› Attained financing to fund the Company until cash generation,
restructured convertible bonds› Completed renaming to Fyber N.V.› Successful transition to new Management Board
OUTLOOK FOR 2018› Gross revenues above €360m, further improved profitability
Financial Highlights02
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KEY FINANCIALSPRO-FORMA
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€m 2016 2015 ChangeRevenue 218.1 129.1 68.9%
Gross margin EUR 62.4 40.7 53.3%
Adjusted personnel costs -37.7 -31.9 18.2%
Adjusted other op. expenses -36.2 -26.0 39.2%
Adjusted other op. income 5.7 5.0 14.0%
Adjusted EBITDA -5.8 -12.1 52.1%
Adjusted D&A -4.0 -1.6 250.0%
Net interest -9.2 -6.1 50.8%
Tax -3.1 4.8 -164.6%
Adjusted loss after tax -22.1 -14.9 -48.3%
Adjusted basic loss per share -20c -13c -53.8%
PRO-FORMA QUARTERLY HEADLINE FINANCIALS
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24.025.930.5
48.8
42.5
52.452.3
71.0
49.7
69.9
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Note: Pro-forma numbers as if Heyzap and Inneractive had been acquired on 1 January 2015; 2016, 2017 based on preliminary pre-audit calculations; All numbers in €m
8.4 8.7 9.4
14.2 13.215.6 15.0
18.6
14.6
20.3
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
-2.1
-3.6
-5.3
-1.0 -1.4-0.9
-3.0
-0.5
-5.0
1.2
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Adj. EBITDA+52% YoY FY2016
Gross Revenue+69% YoY FY2016
Gross Margin EUR+53% YoY FY2016
REVENUE DETAILS
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0
20
40
60
80
100
Milli
ons
Fyber Platform Cum. Delta YoY Fyber RTB & INN Cum. Revenue
56%
36%
6%1%
FY 2016
US EMEA APAC RoW
Gross Revenue by GeographyGross Revenue Variance vs. 2015
Note: Geography split based on reported revenues
WELL-DIVERSIFIED REVENUE BASE IN TERMS OF BUYING TECHNOLOGY AND AD FORMATS
10
Gross Revenue by SegmentGross Revenue by Revenue Source
0
5
10
15
20
25
30
OW RV INT Fyber RTB INN Other
Note: OW = Offer Wall; RV = Rewarded Video; INT = Interstitial Ads; Fyber RTB = programmatic revenues across ad formats; INN = Inneractive revenues across ad formats; Other = Other revenues
€80m
€52m
€83m
€3m
FY 2016
Fyber Platform Fyber RTB Inneractive Other
SEPARATELY DISCLOSED ITEMS PRO-FORMA
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€m 2016 2015 Discontinued operations (Big Star Global) 3.4 -14.4
Re-valuation of Heyzap earn-out obligation 8.7 -
Transaction costs related to acquisitions -4.9 -1.2
Pre-acquisition financing cost at Inneractive -4.0 -Non-cash accounting charges for stock options, warrants etc. -2.4 -2.6
Amortization of acquisition intangibles -7.7 -2.5
Other -0.9 -1.0
Total -7.8 -21.7
KEY FINANCIALSREPORTED
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€m 2016 2015 Change
Revenue 176.8 81.1 118.0%Gross margin EUR 48.2 24.3 98.4%
Personnel costs -35.4 -25.6 -38.3%
Other operating expenses -36.1 -23.0 -57.0%
Other operating income 14.6 4.9 198.0%
EBITDA -8.6 -19.3 55.4%Depreciation & Amortization -9.3 -3.9 -138.5%
Net interest -9.3 -3.4 -173.5%
Tax -2.1 3.1 -167.7%
Loss after tax from continuing operations -29.2 -23.5 -24.3%
Loss after tax from discontinued operations 3.4 -14.4 123.6%
Loss after tax -25.9 -37.9 31.7%Basic loss per share -23c -33c 30.3%
CASH FLOW STATEMENT 2016
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› Net Cash Flow from operating activities was €-22.1m (PY €-12.6m) with the increase being mainly due to higher working capital and interest
› Capital Expenditure amounted to €-5.4m (PY €-6.3m)
› Acquisition related investment amounted to €-70.1m (PY €-10.5m) for 100% of the shares of Heyzap and Inneractive
› Financing activities have generated €48.0m (PY €88.5m) –the proceeds of the Convertible Bonds
› Net changes in cash during the year were €-54.4m
EQUITY
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SHAREHOLDERS’ EQUITY
› Decreased to €120.4m (PY €144.8m) due to
› €-25.9m Loss after tax
› €-5.0m Purchase of treasury shares in the BigStar Global transaction
› €4.2m Capital reserve on convertible bonds tap issue
› €2.6m Foreign currency translation reserve and other
Outlook & Strategy Update03
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THE FYBER FLYWHEEL
Free Publisher Tools & Platforms
Publisher ReachEnvironment, Size,
Vertical, Geo
User Reach Volume, Global, Data
AdvertisersNumber, Size, Share of
Wallet
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THE NEED FOR INTEGRATION –TODAY VS. TOMORROW
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MULTI-COMPANY MENTALITY› Currently three sub-companies: Fyber, Fyber RTB (formerly Falk
Realtime) and Inneractive
› Business is viewed and evaluated based on sub-company vs. product / geo / target audience
UNDER CAPITALIZED REVENUE OPPORTUNITIES› Current offering is mostly complementary, some similarities and overlap;
may require multiple integrations
EFFICIENCY AND COSTS› Need to eliminate / minimize redundancies, overlap and improve under-
performing sections across the different organizations
LACK OF STANDARDS FOR TRACKING AND MEASURING› Difficulty prioritizing investments due to lack of standardized
mechanisms
LONG PERIOD OF TRANSITION› No unified management structure = no unified leadership
› Extended period of uncertainty led to a decrease in productivity
INTEGRATION GOAL: ONE, PROFITABLE COMPANY WITH A STRONG, DIFFERENTIATED BRAND
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SYNERGIES & OPTIMIZATION› Leverage knowledge, assets, people and best practices to
generate differentiation
› Identify and leverage synergies, optimize structure, processes and platforms to improve efficiency and reduce costs
› Steer the re-organization into one company with functional design to focus on high growth opportunities
› Enable all moving parts of the company to work in sync towards the new corporate goals
IMMEDIATE FOCUS AND QUICK WINS
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BUSINESS SYNERGIES› Heyzap and Inneractive integration
› Fyber and Inneractive integration
› Unified Direct Sales team
UNIFIED SHARED SERVICES› One unified global management team
› Integration across general functions: HR, Finance, Marketing, IT
› Product and R&D organizations aligning towards unified product vision and roadmap
SHARED INFRASTRUCTURE AND SERVICES› Joint office space in San Francisco, London, Beijing and New York
› Combined memberships for various services, platforms, tools
› Unified marketing sponsorships, events and campaigns
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NEW FYBER MANAGEMENT BOARD
Ziv ElulCEOFounder of Inneractive; Focused on sales operation, R&D and finance aspects;15+ years of industry & management experience, MB member of YPO; Lieutenant Colonel in Israel’s Reserves Corps
Crid YuCOO15+ years experience in digital media, with a focus on mobile advertising, with companies such as Google and InMobi and previously McKinsey & Company; PhD Electrical Engineering
Yaron ZaltsmanCFOExtensive CFO experience within public companies, worldwide, and on Frankfurt Stock Exchange; MBA, CPA; Previously: ADO Group, Deloitte, Arthur Andersen
Dani SzternDeputy CEO20+ years of diverse, international experience at large public and private companies, mainly in the software industry, as both COO and CFO; Previously: Nextcom, Adgar, Rabinetex, Identify Software
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EXPERIENCED CORPORATE MANAGEMENT TEAM Henrik Basten
CTOErwin Plomp
CBO Fyber RTBWelby Chen
CBO InneractiveJim Schinella
CBO Fyber
Offer YehudaiPresident, Co-Founder
Inneractive
Tzurit GolanVP HR
Tina KastenGeneral Counsel
Markus GehrmannSVP Operations
Gal Aviv VP Engineering
Yoni ArgamanSVP Marketing &
Corporate Strategy
INTEGRATION OUTLOOK
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SHORT TERM H2 2017
› Business synergies and ‘quick wins’
› Management structure
› Vision
› Unified product planning
› Shared services
› Overhead (office space, IT vendors)
MID-TERMH1 2018
› One brand
› Product roadmap
› Product offering
› Business Units / Cross-selling
LONGER-TERMH2 2018 › Technology and data infrastructure
POSITIVE OUTLOOK ON ABOVE-MARKET ORGANIC GROWTH
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€43.3m€64.0m
€129.1m
€218.1m
€280.0m
€360.0m
2013 2014 2015 2016 2017E 2018E
-€0.7m -€0.7m
-€12.1m
-€5.8m
€3.0m
2013 2014 2015 2016 2017E 2018E
+ 29 % IN GROSS REVENUES FOR 2018E
IMPROVED PROFITABILITY
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THANK YOU
FYBER N.V.
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[email protected] +49 30 609 855 555
Office AddressJohannisstraße 20, 10117 Berlin, Germany
About Fyber N.V. (formerly RNTS Media N.V.)Fyber is a leading advertising technology company. It empowers app developers and digital publishers to generate business-critical revenue streams withtargeted advertising, enabling them to optimize the yield they generate from advertising. Fyber’s technology is channel-neutral and provides an open-access platform for advertisers and publishers. Its platforms enable cross-device advertising with a global reach of more than one billion monthly activeusers and a strong focus on video. Fyber was founded in 2010 as RNTS Media and is headquartered in Berlin, Germany. The Company employs morethan 400 talented people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol ‘FBE.’ In 2016 the fast-growing Groupcompanies won a number of awards including: Deloitte Technology Fast 500™ 2016 EMEA company; was placed in Gruenderszene’s Top 50 growthranking 2016, and won the Golden Bridge Gold Award 2016.