Digital media solutions for global advertisers
2
o Reworld Media (ALREW PA) is a unique digital media group expert at revitalizing media brands and applying technologies to the fast moving ad-tech market
ENTREPRENEURIAL CULTURE: Successful acquisitions in the media sector: magazines from Axel Springer, Lagardere; controlling stake (30%) in TradeDoubler
TURNAROUND EXPERTISE: Adjusting costs, culture and business model to digital
DIGITAL AUDIENCE GROWTH: Strong brands strategy. Audience x3 since 2015.
MONETISATION: Advertiser-centric strategy, comprehensive offer to global clients
TECHNOLOGY: Full ownership of cutting edge technology in Europe
INTERNATIONAL GROWTH: Large international footprint to service global advertisers
(50% of the revenue)
BRAND-PERFORMANCE SYNERGIES – Reworld Media is unique in the market with a fully integrated offer: Competitive advantage through superior data on internet consumer behaviour.
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
STRONG REVENUE BASE - Consolidated pro forma sales: €200m in 2016, fully consolidating TradeDoubler. €52m of digital revenue already achieved in 1H16.
PROFITABILITY BOOST expected in 2017 driven by shift to digital and self-help. Sharp increase in new business’ gross margin. Higher structural margin.
GROWTH FOCUS – Leaner business ready for digital growth following 2 years of asset restructuring (2014-16). Digital revenues in Branding: +15% in 1H16 YoY.
SOLID BALANCE SHEET – No debt leverage / Consolidated equity : €16.6m
STRONG GROWTH IN H1 2016 RESULTS
• BRANDING: Strong EBITDA increase to €1.1M(€0.5m in 1H15)
• PERFORMANCE:Turned EBITDA positive in 3Q16
S1 - 2015S1 - 2016
Media performance
Media branding digital
€4,8M€3,5M
€47,1M
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Consolidated revenue
€26,6M€25,4M
o Share Price: €1.12 - November 25th, 2016
o Listed on Alternext since 16/06/14
o ISIN : FR 001082027
o MNEMO : ALREW
o TICKER Bloomberg : ALREW FP
o Shareholders :
4
Public20%
Investors50%
Founders30%
0,5
0,75
1
1,25
1,5
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16
Reworld Media Share Price (€)
At 25th November 2016
Market cap. €35m
Highest (since 1-01-16) €1.42
Lowest (since 1-01-16) €0.78
Average volume since 1-01-16 19285 shares
Average volume 2015 11615 shares
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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• Former chairman at Netbooster(Alternext Paris ALNBT)
• Former Director of Prosodie (now Cap Gemini) in London, Chairman of CPI Venture.
• Board member of: Nextedia, Lead Media Group, Mobile Network Group, 50 partners, Sportever, Tradedoubler
Pascal ChevalierCo-founder & Chairman
Gautier NormandCo-founder & CEO
• Former CEO of La Tribune,• Head of Projects at NextRadio
TV, and notably secured the purchase of La Tribune from LVMH.
• Former Development Director at Axel Springer France (2006)
• Former Media Sector Director at Deloitte (2001).
• Board member of: Tradedoubler, Sportever
Reworld MediaGroup
TradeDoublerControlling stake with 3 seats
on the board
30%
Reworld Media Branding activities
100%
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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2015-2016 onwards2012-2015
Acquisition of established magazine brands and cross-over e-commerce
Merger with Emailing network
2012Acquisition by
consortium led by Pascal Chevalier & Gautier Normand
Acquisition from Axel Springer of Télé Magazine,
Gourmand, Vie Pratique, etc
Acquisition from Marie Claire Group
of Marie France
Acquisition from LagardèreGroup of Be, Auto Moto,
Maison & Travaux, etc.
Digital Marketing Performance extension with Tradedoubler
2015Reworld Media takes a
19% stake in Tradedoubler
-
Raised to controlling 30% in 2016
(3 Board seats)
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Acquisition from Solocal of Zoom On
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• Digital marketing partner for
o 2000+ advertisers
o 180,000 publishers
• Leading technology solutions
• 69 countries
• €174m revenue in 2015
• 12 magazine brands
• 3 clusters: Women, Lifestyle, Entertainment
• €60m revenue in 2015
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Increase visibility
Build up brand
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Increase sales
Strengthen distribution
Unique combination of knowhow for digital advertisers
• Print & digital activities• Diversification
• Big Data on Leads• Affiliation & retargeting technologies• Strong ROI for advertisers
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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*Source: eMarketer Western Europe Digital Ad Spending - March 2015; Tradedoubler estimates.
Reworld Media is addressing 60% of a €22bn advertising market*
20% 14% 26%
Branding Affiliate Display (targeting & retargeting)
Search(Google)
40%
BRANDING PERFORMANCE MARKETING
Main Objective Visibility, brand construction ROI : Audience, leads, sales
KPI Public exposure, memorisation Page views, CAC
Monetisation Audience New lead, average spending per customer
Purchase method CPM - CPC Optimized CPC & CPM, CPA (CPL & CPS)
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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Comprehensive marketing performance
services - tools
Leading publishing
Turnaround of underperforming assets
Profitable print magazines
Acquisitionsof media brands
Revenue& industrial
synergies
Web traffic monetisation
Reactivityto technological
change
ENTREPRENEURIAL CULTURE
Digital transition
Balanced IP portfolio
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Efficient build up strategy
o : : Ongoing developments• New technologies for increased market coverage from affiliation only to display
and retargeting• Strategic partnerships & acquisitions (video & mobile) • New international subsidiaries asserting global market presence (focus on Asia)
Objective: operational profitability by end 2016 – Already delivered in Q3 2016
o : Profitable path to increased footprint• Increased overall profitability• New digital revenue streams: events, custom publishing• Sustained investment in video content and monetisation• Stronger position in South-East Asia
o Intelligence watch of external growth opportunities• Brand diversification • Digital and event management targets - France and international
11EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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Established brands generating qualified traffic,
with focus on digital redeployment and international development
Women
Lifestyle
Entertainment
• Massive audience progression since takeover (x7)
• International redeployment with focus on Asia:Be and Marie France: 1st in Singapour
• Auto Moto: Audience x4.5 last year• Leading brands in their respective fields
• 2nd most significant audience progression in the field (+40%)
• Increased brand awareness
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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News Letters15M subscribers
WEBSITES13M visits
PRINT12M readers
MOBILE 6M visits85 millions
Monthly contacts
VIDEOS6000 videos
20M views
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
TRADE20 millions de people7 000 points sales point
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Time
Readership/Audience
The magazine launch trap: new magazine launches by major
media groups to sustain organic revenue growth
Neglect factor: perceived readership peak by historic
magazine groups
Reworld Media’ brand rejuvenation process via:- Digitalisation- New products- New revenue
streams1
2 3
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Acquisition by REWORLD MEDIA
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Acquisition from Lagardère Successful Brand Refocus and Digital Turnaround
• Print magazine
business only - NO
digital footprint
• NO digital
monetisation
Print-only Website makeover
€3M Cost-cutting
#2 digital Media Automotive
brand in FranceTraffic x4.5 in the last 12 months
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
From loss to profit in 18 months
New magazine formula
Event organisation
Auto Moto Awards
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Acquisition from Marie Claire Group Successful Brand Refocus and Digital Turnaround
Website makeover
New magazine formula
Newsletter & social network build-up
Event organisation, Pop-up store concept
Asian market expansion
• Symbolic acquisition
price (1€)
• No brand digital
monetisation
• Poor recognition
outside France
Print-only #1 audience in Singapore (Women media, June 2016)
Best feminine Media
Digital in Asia-Pacific
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
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2,000+
Advertiser customers
180,000
Affiliated websites
41
MILLIONS
Triggered
sales*
174 M€
Revenue*
* Data for 31-12-15
Leading partner of advertisers’ marketing departments
More sales or leadsTD CONVERT enables advertisers to access
international publisher network to deliver
incremental sales and leads
Manage your digital marketing activity in-house
TD CONNECT is a white-label partner
management platform allowing clients to
manage their digital marketing in-house
Target existing and new customers: Retargeting
TD ENGAGE uses behavioural data to target
customers with relevant advertising that
delivers the results our clients want
PRODUCT OFFERING
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
o 1H16 Revenue Breakdown : 33% UK, 22% France, 21% Nordic, 13% Germany, 11% Italyand Spain
o 11 international sites in 10 countries (Germany, UK, France, Spain, Italy, Holland, Singapore, Sweden, Switzerland, Brazil) and a network of 69 countries
18EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
19EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
APPENDIX
1H16 Results
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o Strong revenue growth thanks to:• Organic digital sales increase
• Tradedoubler consolidation starting from the 1st of March 2016
Consolidated sales (M€)
S1 - 2015
S1 - 2016
Tradedoubler"Media performance"Historic perimeter "MediaBranding"
x 2,5
77,3M€
30,1M€
47,1M€
30,2M€
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S1 - 2015S1 - 2016
Turnover "Branding Digital"
Turnover "Branding Print"
Media BrandingTurnover evolution (€m)
3,5€M 4,8€M
Stable revenues at €30.2m BUT
o 37% turnover increase fromdigital* in Media Branding
• Exclusively organic growth
• Succesful diversification strategy of Media brands
• Efficient monetisation of fast-growing audiences
o Small turnover decline of Branding Print, in line withmarket trend
26,6€M25,4€M
* Digital turnover and diversification
30,2€M30,1€M
32,9%
6,2%
60,9%
Media branding print Media branding digital
Media performance
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« Media Performance » +
« Media Branding Digital »=
67% of revenues
Consolidated revenue breakdown (30/06/2016)
S1 - 2015S1 - 2016
Media performance
Media brandingdigital
€52m of turnover achievedin digital in 1H16
Consolidated revenue
51,9€M
4,8€M3,5€M
47,1€M
€26,6M€25,4M
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o Media Branding (historic scope)
• EBITDA increase from €0.5m to €1.1m
• Profitability of historic digital activities
• Sustained profitability of Print Media despite a declining market
o Media Performance (Tradedoubler)
• Consolidated EBITDA close to the balance
• Strong profitability recovery with a sharplyreduced loss
• Rationalization and improvement in grossmargin
EBITDA Evolution
-0,5 0 0,5 1 1,5
S1 - 2015
S1 - 2016
Total consolidated Media Performance
Branding Digital Branding Print
1M€
0,5M€
-0,1M€
0,9M€
1M€
0,2M€
-0,5M€
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Audited, in M€ S1 2016 S1 2015
Revenues 77,26 30,13
EBITDA 1,0 0,5
Allowances to depreciation and reserves -1,26 -0,36
Operating Income - 0,26 0,14
Financial Income - 0,67 - 0,06
Exceptionnal result - 0,95 - 2,04
Net income of the integrated companies -1,99 -2,00
Subsidy / occasions in goodwill amortisationsInterests of the members of a minority party
-0,06
-1,14
2,8
0
Net income Group share -0,91 0,82
Audited, in M€ 30/06/16 31/06/15
Equity after minority interests and otherstockholders' equity
16,6 18,1
Cash 32,7 13,6
Debt 34,4 2,3
Balance Sheet (selected parts)
Income Statemento Operating profitability driven
by digital shift of revenues and on-going restructuringbenefits
o One-off restructuring charges impacting Net Income
o Healthy balance sheet (net cash positive)
o Debt breakdown:• €26.6m of senior bonds
(Tradedoubler AB), maturing November 2018
• €7.8m Bank loan (Reworld Media)
RETARGETING
AUDIENCE BEHAVIOUR
DATA
TARGETING
AUDIENCE PROFILS
DATA
NETWORK
ADS BANNERS
CONVERSION RATE AND PERFORMANCE TRACKING
Client e-commerce’s
website
TECHNOLOGY
Reworld Media Assets
Dedicated content
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Cost Per Clic(CPC)
EXECUTIVE SUMMARY REWORLD MEDIA AT A GLANCE MEDIA BRANDING MEDIA PERFORMANCE
Existing clients to our holistic approach:
REWORLD MEDIA GROUP Investor Relations
16 rue du Dôme David Chermont92100 Boulogne Billancourt [email protected]
Tél : +33 (0)1 74 31 36 36 Frederic Portier
[email protected] [email protected]
Listing Sponsor Communication
Contact : Julia Bridger Ségolène de St Martin - PCE
[email protected] [email protected]
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