Transcript TradeDoubler Presentation
Europe’s leading partner in performance-based digital marketing –
“Improvement in the UK and stability in Southern Europe”
Interim report January-March 2010
Stockholm, 6 May 2010
Introduction – present in the meeting
• • • Urban Gillström, CEO and President Bernt Andersson, acting CFO Erik Skånsberg, CFO from May 24, 2010 2
New CEO – TradeDoubler perspective
• • • 90 days to hit the ground running as new CEO What I have done until now • • • Learning Market trips meeting many people Voice of the customer • Management team changes – ways of working • Actions to boost sales, gross profit and product development • Operational excellence Key Insights 3
Outstanding reach in a growing market
76 percent reach of the European internet users
• • • • • Off-line shift towards on-line Growth in the European on-line retail, transaction and search markets Broadband penetration and mobile (smart) phone usage Mobile marketing starting to expand Strong growth of social media usage 4
Full scale integrated offering
5
Highlights - first quarter
• • • • • Demand for digital marketing improving – more customer requests Improvement in the UK and stable development in Southern Europe Many markets are improving in local currencies Strong impact from foreign exchange rates and big change in working capital due to normalization of payments Lower sales partly compensated by cost reductions 6
Overview financial results
MSEK
Net sales Gross profit Total costs * Operating profit Profit before tax Net profit Profit per share (SEK)
Jan-Mar 2010
709 164 -148 16 9 3 0.07
Jan-Mar 2009
844 187 -160 27 28 20 0.59
Full year 2009
3,014 690 -795 -105 -127 -178 -5.31
YoY Variance in local currency and adj. cost
*The costs for the full-year 2009 included non-recurring items of SEK180 M, including impairment of goodwill of SEK 150 M, among other items. -9% -5% -6% -1% 7
Regional development
Earnings by region MSEK Gross profit (GP)
Central Europe Northern and Easter Europe UK and Ireland Southern Europe
Total Jan-Mar 2010
32 23 36 73
164 Jan-Mar 2009
37 26 45 79
187 Operating profit (EBIT)
Central Europe Northern and Easter Europe UK and Ireland * Southern Europe Parent Company and eliminations
Total
16 8 18 47 -73
16
22 13 25 55 -88
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• •
Improvement in the UK and stable development in Southern Europe Improving results in local currencies
Full year 2009
145 95 160 290
690
79 44 -109 186 -305
-105 YoY Variance in local currency
-5% -6% -12% 0%
-5%
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Margin development
25.0
20.0
15.0
20.9
21.9
21.7
22.3
21.4
22.2
21.5
22.5
21.3
21.3
21.1
21.2
15.0
20.9
12.6
10.0
5.0
6.5
6.2
9.8
10.1
9.0
8.5
9.9
0.0
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Margin td Affiliate + td Campaigns Margin Search 9
Gross profit development
Gross Profit (MSEK) Gross Profit in local currency (MSEK)
10
Operating cost development
Operating costs (MSEK) Operating costs in local currency
-
Q1 2010:
Including 9(4) MSEK costs relating to management changes and internal control projects - Number of employees 603 (602) 11
Consolidated balance sheet SEK 000s Assets
Intangible fixed assets Tangible fixed assets Financial fixed assets Deferred tax assets
Total fixed assets
Accounts receiv ables Tax assets Other receiv ables, prepaid expenses and accrued income Cash & cash equiv alents
Total current assets Total assets Shareholders' equity and liabilities Shareholders' equity
Subordinated loan Deferred tax liabilities
Total long-term liabilities
Current interest-bearing liabilities Accounts payable Current liabilities to publishers Tax liabilities Other liabilities, accrued expenses and deferred income
Total current liabilities Total shareholder´s equity and liabilities 31 Mar 2010
450,748 20,653 2,388 27,719
501,508
603,061 44,518 38,180 148,201
833,960 1,335,468 31 Mar 2009
657,664 22,212 2,410 52,761
735,047
677,264 60,288 151,088
888,640 1,623,687 31 Dec 2009
477,276 21,425 2,520 28,831
530,052
657,049 21,454 80,427 436,596
1,195,526 1,725,578 473,490
17,650
17,650
78,312 386,084 3,668 376,264
844,328 1,335,468 333,907
50,000 16,578
66,578
207,500 189,382 425,221 48,589 352,510
1,223,202 1,623,687 480,507
50,000 23,862
73,862
192,065 127,432 418,615 433,097
1,171,209 1,725,578
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Consolidated cash flow statement SEK 000s
Operating activities
Profit before tax Adjustments for items not included in cash flow Tax paid Cash flow from changes in working capital
Cash flow from operating activities
Cash flow from inv esting activ ities Cash flow from financing activ ities
Cash flow for the period
Cash and cash equivalents
On the opening date Translation difference
Cash and cash equivalens on the closing date Jan-Mar 2010
8,662 9,891 -26,927 -70,967
-79,341
-3,341 -199,245
-281,927
436,596 -6,468
148,201 Oct-Dec 2009
23,452 7,229 -13,223 89,754
107,212
-867 295,377
401,722
40,505 -5,631
436,596 Jan-Mar 2009
27,564 9,831 2,324 10,335
50,054
-3,195 -29,327
17,532
133,389 167
151,088
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Integration Agreement with Marin Software
• • • Complement and enhance TradeDoubler’s current Search solution Clients get full access to one of the most powerful search management platforms with over 180 customers who collectively manage in excess of $1 billion of annual search spend Integration completed during the second quarter 14
First quarter in perspective
• • • • • • All regions generate positive EBITDA Improvement in the UK and stable development in Southern Europe Substantial impact of foreign exchange rates and large change in working capital Improved financial position Positive signs for the market of digital marketing New phase for the company 15
Key Priorities – profitable growth focus
1 2 3 Boost revenues and gross profit Operational excellence Continued focus on cost reductions and cash flow
16
Profitable growth focus
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Questions
Thank you!
Urban Gillström, CEO and President
T +46(0)8 40 50 800 | M +46 (0)70 785 76 00 E [email protected]
Bernt Andersson, Acting CFO
T +46 (0)8 40 50 800 | M +46 (0)766 76 17 E bernt.andersson@ tradedoubler.com
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Apppendix
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Geographical segments
Northern and Eastern Europe
Finland Lithuania Japan Norway Russia Sweden
Central Europe
Denmark Poland Germany Switzerland Austria
Southern Europe
Belgium France Italy Netherlands Portugal Spain
UK and Ireland
UK Ireland 21