UBS Australasia Conference 2015 For personal use only · 11/16/2015 · Isentia is...

FOR IMMEDIATE RELEASE 16 November 2015

UBS Australasia Conference 2015

Isentia Group Limited (ASX:ISD) advises the attached presentation is being delivered at the UBS Australasia Conference in Sydney today

For more information:

Investors Media Jolanta Masojada Patrick Baume Investor Relations Consultant Group Communications Manager [email protected] [email protected] +61 417 261 367 +61 458 651 000 About Isentia Isentia is Asia-Pacific’s leading media intelligence company, providing over 5,000 clients with information, analysis and advice 24/7/365. Isentia has more than 1,100 employees across 15 countries filtering information from over 5,500 print, radio and television media outlets and over 250 million online conversations per month. Our talented people, innovative search technology, comprehensive coverage and expert research provides the tools and insight to allow our clients to manage media relationships effectively, track and analyse issues of interest across all media, and discover and share valuable insights that drive smarter decisions.

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mailto:[email protected]

mailto:[email protected]

JOHN CROLL CHIEF EXECUTIVE OFFICERDAVID LIU CHIEF EXECUTIVE, ASIA16 NOVEMBER 2015

UBS AUSTRALASIA CONFERENCE

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AGENDAGLOBAL TRENDS AND ISENTIA’S STRATEGIC RESPONSE ISENTIA’S ASIAN STRATEGYFY16 FULL YEAR OUTLOOK Q&A

JOHN CROLL

DAVID LIUJOHN CROLLJOHN CROLL/ DAVID LIU

UBS AUSTRALASIA CONFERENCE 16 NOVEMBER 2015

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GLOBAL TRENDS AND ISENTIA’S STRATEGIC RESPONSE


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GLOBAL INDUSTRY TRENDS

Industry Consolidation

Rapid Growth in Social and Content Marketing

GLOBAL MARKET SHARE2010

GLOBAL MARKET SHARE 2014 (PROFORMA)

4 YEAR CAGR GROWTH RATES IN MEDIA INTELLIGENCE AND CONTENT MARKETING

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

MediaMonitoring

MediaDatabase

MediaAnalysis

Content Marketing

SocialMedia

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

MediaMonitoring

MediaDatabase

MediaAnalysis

Content Marketing

SocialMedia

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

MediaMonitoring

MediaDatabase

MediaAnalysis

Content Marketing

SocialMedia

PR Newswire

Cision

Meltwater

Kantar Media

Business Wire

PR Newswire

Cision

Meltwater

Kantar Media

Business Wire

GlobalIsentia

Marketwired

Nasdaq OMX

Other

Isentia

Marketwired

Nasdaq OMX

Other

APAC

Source : Burton-Taylor International Consulting LLC “Media Intelligence / Public Relations Information & Software Global Share & Segment Sizing 2015”, PQ Media Global Content Marketing Forecast

12.4% 10.8%

7.8%13.8%

4.5%

4.5% 6.0%

6.5%6.8%

4.1%4.6%3.6%

4.1%0.9% 2.8%2.2%

MARKET VALUE

US $2.0BN

MARKET VALUE

US $2.6BN

UBS AUSTRALASIA CONFERENCE 16 NOVEMBER 2015 4

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APAC GROWTH OPPORTUNITY

GLOBAL GDP BY REGION (2014) US$TRN

30

25

20

15

10

5

0Americas EMEA APAC

25.5 24.8 24.0

1.5

1

0.5

0Americas EMEA APAC

1.2

1.0

0.4

Source: World Bank; OECD


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APAC GROWTH OPPORTUNITY

GLOBAL GDP BY REGION (2014) US$TRN GLOBAL MEDIA INTELLIGENCE REVENUE BY REGION (2014) US$BN

30

25

20

15

10

5

0Americas EMEA APAC

25.5 24.8 24.0

1.5

1

0.5

0Americas EMEA APAC

1.2

1.0

0.4

30

25

20

15

10

5

0Americas EMEA APAC

25.5 24.8 24.0

1.5

1

0.5

0Americas EMEA APAC

1.2

1.0

0.4

Source: World Bank; OECD / Burton-Taylor International Consulting LLC “Media Intelligence / Public Relations Information & Software Global Share & Segment Sizing 2015”

Social MediaMedia Database

Media AnalysisMedia Monitoring


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MARKET LEADERSHIP IN APAC

Media Monitoring

Social Media

Press Release Distribution

Isentia

Meltwater

Wisers

Media Analysis

Contact Management

Hottolink

PR Newswire

Other

54.8%

17.8%

12.3%

8.8%

6.3%

BY CATEGORY

APAC Total Media Intelligence Market Share (2014)

54.9%

29.1%

5.8%

3.8%

3.8%2.6%

BY COMPANY

Source: Burton-Taylor International Consulting LLC, “Media Intelligence / Public Relations Information & Software Global Share & Segment Sizing 2015”Note: All unlabelled segments comprise less than 3.0% each


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MARKET LEADERSHIP IN APAC

APAC market share by revenue (2014)

Isentia

Meltwater

Wisers

Other

Isentia

Meltwater

Other

PR Newswire

Isentia

Other

Isentia

HottoLink

Salesforce

Hootsuite

Other

King Content

Edge

Mahlab Media

Che Proximity

Castleford

Red Engine

Other

MEDIA MONITORING

CONTACTMANAGEMENT

+ PRESS RELEASE DISTRIBUTION

MEDIA ANALYSIS

SOCIAL MEDIA

CONTENT MARKETING (SPECIALIST)

42%

71% 77%

7%

22%

3%

20%

21% 22%

11%

9%

12%

15%

6%5%

19%

53% 12%

15%

10%7%

41%

Source : Burton-Taylor International Consulting LLC “Media Intelligence / Public Relations Information & Software Global Share & Segment Sizing 2015” Management forecast


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VALUE ADDED SALES TO ANZ

CLIENTS

ASIAN MEDIA INTELLIGENCE

EXPANSION

PRODUCTDEVELOPMENT

AND INNOVATION

STRATEGIC ACQUISITIONS

✓ YoY revenue growth in value added services:

- Daily Reports to high value existing clients.

- Insights and Analysis dashboards and Industry Benchmarking driving higher revenue per customer.

- Social Media products being extended from listening through to engagement and marketing offering being developed.

✓ Opportunities to enhance the 3,500 ANZ client relationships with marketing strategies and digital content from the King Content acquisition.

✓ Revenue growth in value added services in Asia with social media insights to global brands in China driving revenue.

✓ Mediaportal delivered in the Asian market with clients transferred onto the platform.

✓ Enhancements to Media Alerts and the Connect Media Database on Mediaportal will increase revenue per customer and new clients across the region.

✓ Asian Management team strengthened with strong marketing and agency experience to align with our clients’ needs.

✓ Mediaportal: Available across Australia, NZ, Singapore, Hong Kong, Malaysia, Thailand, Indonesia, Philippines & Vietnam. Introducing Mediaportal Connect, the first regional Media Directory and media release service, will accelerate client up-sell and attract new clients.

✓ Social Media Listening: Targeting a new digital/social media audience, Social Channels for Facebook launched. Supports social channels, advocacy, engagement and customer care and analytics.

✓ Horizon Scanner: Isentia’s “social media signal detection” research and development project is complete. Strong interest from large government and corporate clients. The technology can filter into Isentia’s broader product portfolio (eg. Mediaportal) in future.

✓ King Content acquisition provides the opportunity to leverage the Isentia client base, access additional marketing budgets within our client portfolio and be a market leader in the rapidly growing content marketing segment.

✓ Acquisitions in high growth markets continue to be explored.

✓ Successful completion of Hong Kong media intelligence acquisition.

DELIVERING ON OUR GROWTH STRATEGIES


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AN INTEGRATED SERVICE MODEL: ISENTIA AND KING CONTENT DATA AND INSIGHTS> Audience analysis> Competitor analysis> Content audit> SEO/ keyword analysis> Social listening> Social tracking> Influencer identification> Monitor and analyse news> Industry trends

MEASUREMENT AND REPORTING> Mediaportal > Communiqué> Community management> Paid owned and earned analytics> Media monitoring> Social listening> Media alerts> Daily briefings> Track influencers

STRATEGY> Persona development> Channel purpose > Objectives and KPIs> Gap analysis> UX> Creative ideation> Resource planning

AMPLIFICATION> Social media advertising> Influencer programs> Native advertising > Re-targeting/ tactical content> Track and engage with influencers> Access journalists> Build lists> Media Distribution

CONTENT CREATION> Editorial > Social media campaigns> Video> Design> UGC campaigns> Digital builds


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NEW MARKET OPPORTUNITIESREAL-TIME NEWSROOM

INTEGRATING ISENTIA INSIGHTS & STRATEGY

CURRENT PRODUCT

CURRENT PRODUCT

FUTURE PRODUCT

FUTURE PRODUCT

Editor

Editor

Target Audience

Content Hubs

Client

Client

Client

Real-Time Content & Social Program

Real-Time Content & Social Program

Daily Briefing

Insights Report

Daily Briefing

Insights Report

Target Audience

Content Hubs

Client


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ISENTIA’S ASIAN STRATEGY


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STRENGTHENED ASIAN MANAGEMENT TEAM

David LiuChief Executive, Asia

Thomas WongGeneral Manager, China

Eden LauRegional Director, Social

Joe ChanGeneral Manager, Thailand

Hazel MurphreeCommercial Director

Ee Ming TanFinance Director, Asia

Former Asia CEO, Engine Group Former Asia Pacific CEO, Aegis Media Group

Former Greater China CEO, Havas Media, Former Greater China CEO, Aegis Media Group

Former Director, Brandtology, Former Technology Director, CSL Telecom

Former MD, ESG China, Former MD, Rentokil Initial Thailand

Former SE Asia Director, Isentia, Former Philippines Country Manager, Mediabanc

Former Asia FD, Zuellig Pharma Group

Previous Previous

Previous Previous

Previous

Previous

Garick KeaInsights Director

Former Research Director, Brandtology, Former Research & Insight Director, Blackberry Asia

Previous


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18 OFFICES ACROSS APAC

1 Beijing

2 Shanghai

3 Chongqing

4 Hong Kong

5 Manila

6 Ho Chi Minh City

7 Bangkok

8 Kuala Lumpur

9 Singapore

10 Jakarta

11 Brisbane

12 Sydney

13 Canberra

14 Melbourne

15 Adelaide

16 Perth

17 Auckland

18 Wellington

243 sales and client support

employees

1

23

4

5

67

89

10

11

1213

14

1516

17

18


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OUR NETWORK

18 LANGUAGES

1 Arabic

2 Bahasa Indonesia

3 Bahasa Melayu

4 Chinese (Traditional)

5 Chinese (Simplified)

6 English

7 French

8 German

9 Italian

10 Japanese

11 Korean

12 Polish

13 Portuguese

14 Russian

15 Spanish

16 Tagalog

17 Thai

18 Vietnamese

CAPTURING and ENRICHING 100 stories per second

> 5,500 mainstream media outlets

> 55,000 online sources monthly

> 3,400,000 user-generated sources

> 2,600,000 print articles monthly

> 1,300,000 online news articles monthly

> 8,000,000 social media posts daily

> 1,750 television and radio programs

daily

> 12,500 broadcast summaries daily from client requests


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REGIONAL CONTENT DELIVERED SEAMLESSLY VIA UNIFIED, AWARD-WINNING SAAS PLATFORM


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ASIA – GROWTH STRATEGY

China Driving Core Growth Accelerating VAS

• Recruited top calibre manager to build a larger business

• Extending broadcast and social media listening platform

• Driving growth of media insights and social listening with King Content

• Multi-lingual Mediaportal delivered into market

• Specialist multi-regional sales and service team

• Consolidating the sector through bolt on acquisitions

• Entry into the media release and media database market

• Bundling media monitoring and insights

• Integrating social (Brandtology) and brand content marketing (King Content)


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GROWING CLIENT REVENUE - CASE STUDIES

MANULIFE CHINESE TELECOMMUNICATIONS CLIENT

January 2015 March 2014

July 2015 November 2014

August 2015 September 2015

$8K /year

$115K /year

$153K /year

$270K /year

$270K /year

$720K /year

Monitoring contract Media monitoring and insights

Social listening & insights Media insights – 8 countries

10 markets monitoring Media insights, social listening & reports


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ASIA FINANCIALS

REVENUE A$M EBITDA MARGINS

30

25

20

15

10

5

0FY11 FY12 FY13 FY14 FY15

5.9

-25%

15.918.6

20.4

24.3

30%

20%

10%

0%

-10%

-20%

-30%FY11 FY12 FY13 FY14 FY15

4%

11%

20%23%

30

25

20

15

10

5

0FY11 FY12 FY13 FY14 FY15

5.9

-25%

15.918.6

20.4

24.3

30%

20%

10%

0%

-10%

-20%

-30%FY11 FY12 FY13 FY14 FY15

4%

11%

20%23%


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FY16 FULL YEAR OUTLOOK


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FY16 FULL YEAR OUTLOOK

> High single digit organic revenue growth

> Mid-teens organic EBITDA growth

> King Content is expected to contribute an increase of circa 10% to Isentia’s consolidated FY16 revenue and be EPS accretive in the high single digit range


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Q&A


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APPENDIX – FY15 RESULTS


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$M FY15 ACTUAL FY14 PRO FORMA VARIANCE $M VARIANCE %

Revenue 127.3 110.6 16.7 15%

SaaS 99.1 88.4 10.7 12%

VAS 28.2 22.2 6.0 27%

ANZ 103.0 90.1 12.9 14%

Asia 24.3 20.5 3.8 19%

Expenses (84.8) (79.7) (5.1) (6%)

Cost of sales (including copyright fees) (23.9) (20.6) (3.3) (16%)

Employee costs (52.5) (50.4) (2.1) (4%)

Other operating expenses (8.4) (8.8) 0.4 5%

EBITDA 42.5 30.9 11.6 38%

EBITDA margin 33% 28% - -

Depreciation and amortisation (4.3) (3.8) (0.5) (12%)

EBITA 38.2 27.1 11.1 41%

Amortisation of acquired intangibles (9.4) (8.6) (0.8) (9%)

EBIT 28.9 18.6 10.3 55%

Net finance costs/FX (2.4) (3.3) 0.9 27%

Profit/(loss) before tax 26.5 15.3 11.2 73%

Tax (expense)/benefit (6.0) (2.5) (3.5) (140%)

Non-recurring items (0.9) 0.0 (0.9) -

NPAT 19.6 12.8 6.8 53%

Amortisation of acquired intangibles (after tax) 6.9 6.2 0.7 11%

NPATA 26.5 19.0 7.5 39%

Underlying NPATA* 27.4 19.0 8.4 44%

Earnings per share (cents)** 13.7 9.5 4.2 44%

Dividend per share (cents) 6.9 0.0 6.9 NM

FY15 RESULTS OVERVIEW

*Non-recurring items relate to acquisition costs and IPO-related tax adjustments **EPS is based on underlying NPATA of $27.4m


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This presentation contains general information about the activities of Isentia’s Holdings Pty Limited (ACN 144 573 795) (Isentia or Company) which is current as at 16 November 2015. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with the International Financial Reporting Standards (IFRS) as well as information provided on a non-IFRS basis. This presentation is not a recommendation or advice in relation to Isentia or any product or service offered by Isentia’s subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with Isentia’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular the Full Year Results for the period to 30 June 2015. These are also available at www.isentia.com.

No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, Isentia, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted with this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Isentia, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition or securities.

The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects Isentia’s intent, belief, or expectations at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, Isentia disclaims any obligation or undertakings to disseminate any updates or revisions to this information over time. Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Isentia’s actual results,

performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. For example, the factors that are likely to affect the results of Isentia include, but are not limited to, general economic conditions in Australia and Asia, exchange rates, competition in the markets in which Isentia will operate and the inherent regulatory risks in the business of Isentia. Neither Isentia, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance.

This presentation does not constitute an offer to issue or sell, or solicitation of an offer to buy, any securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of Isentia.

All amounts are in Australian dollars.

All references starting with FY refer to the financial period ended 30 June. For example, FY 15 refers to the period ended 30 June 2015.

DISCLAIMER


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