Introduction to Ascential Our Investment Case

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Introduction to Ascential Our Investment Case INTRODUCTION TO ASCENTIAL OUR INVESTMENT CASE Clear long-term vision. Helping leading global brands connect with their customers in a data-driven world. Structural growth. Demand for information, data & analytics driven by growth of digital commerce. Market leaders. We are leaders, with a unique blend of specialisms, in the high growth areas in which we operate. Robust business model. High recurring and repeat revenue, with more than 50% revenues from digital subscription and platforms, across diverse global customer base. Attractive financial profile. Track record of high single digit revenue growth, strong margins and cash generation, supported by sound capital allocation. Introduction to Ascential 2 OUR CUSTOMER PROPOSITION Our information products and platforms support our customers to do three simple things… CREATE THE RIGHT MAXIMISE THE OPTIMISE DIGITAL PRODUCTS BRAND MARKETING COMMERCE IMPACT Know which products Know how to get Know how to execute the consumer wants maximum creativity with with excellence on the tomorrow. optimised media. winning platforms. 1. 2. 3. Introduction to Ascential 3 SEGMENTAL OVERVIEW –2019 Segment Revenue % Revenue1 Growth1 EBITDA2 Margin Business Model Advisory 10% Digital Subscriptions Product £86m 21% +8% £36m 42% & Platforms 90% Design Digital Subscriptions Advisory & Platforms 11% Marketing £136m 32% +9% £51m 37% 37% Events 52% Advisory 6% Digital Subscriptions & Sales - Platforms 94% Digital £90m 22% +21% £13m 15% Commerce Sales - Digital Subscriptions & Events Platforms 4% Non Digital £68m 16% (1%) £27m 39% 96% Commerce Advisory Built 3% Digital Subscriptions & Environment £36m 9% +5% £17m 47% Platforms 97% & Policy Advisory 15% Digital Subscriptions Total £416m 100% +9% £129m 31% & Platforms 52% Events 33% 1 Proforma for acquisitions, underlying basis 2 Adjusted EBITDA (total includes Group costs) Introduction to Ascential 4 CLEAR LONG TERM VISION 5 OUR LONG TERM VISION WHO WE SERVE / THEIR NEEDS ASCENTIAL PLATFORM ASCENTIAL ACCELERATOR C-Suite Strategy guidance MARKETING, BRAND AND TECHNOLOGY STRATEGY eCommerce Centers Market insights and best practices RETAIL INSIGHTS & PROFESSIONAL SERVICES of Excellence Measuring business results, drivers Commercial Leaders ECOMMERCE MANAGED and sizing opportunities IN-HOUSE TOTAL PERFORMANCE ECOMMERCE ECOMMERCE ECOMMERCE MEASUREMENT MARKETPLACE eCommerce TRADING AND MARKET Optimising online sales AND DIGITAL TRADING AND Managers and Teams MEDIA TRADING DIGITAL SHELF SINGLE ANALYTICS MEDIA PLATFORM OPTIMISATION COMMERCE PLATFORM EXECUTION • Optimising ad placement via VIEW efficient and effective Media + 1ST PARTY Buying PATH TO PURCHASE INSIGHTS DATA VIRTUAL Marketers • Creating effective campaigns MEDIA TRADING PLATFORM MEDIA STRATEGY SHARING via best in class creativity and execution CAMPAIGN BENCHMARKING AND BEST PRACTICE • Selecting the right partners AGENCY OPTIMISATION Product Designers Understand what products to create PRODUCT TREND FORECASTING Consumer Insight Understand the changing consumer CONSUMER TRENDS Managers Business Insight, Synching and scaling data and Decision Science, DATA PLATFORM systems Tech Teams EXISTING FUTURE DEVELOPMENT Introduction to Ascential 6 STRUCTURAL GROWTH 7 STRUCTURAL GROWTH DEMAND FOR INFORMATION, DATA & ANALYTICS DRIVEN BY GROWTH OF DIGITAL COMMERCE Introduction to Ascential 8 MARKET POSITION 9 2019 Advisory % Revenue: 21% PRODUCT DESIGN SEGMENT 10% Margin: 42% ECOMMERCE GROWTH AND COMPLEXITY DRIVES NEED FOR OUR SOLUTIONS Digital Growth: +8% Subscriptions & Platforms 90% HOW WE SERVE OUR CUSTOMERS MARKET DYNAMICS • Consumer needs changing rapidly and more demanding: WHO WE SERVE / THEIR NEEDS ASCENTIAL PLATFORM driven by progression of the hyper-connected digital ASCENTIAL ACCELERATOR economy C-Suite Strategy guidance MARKETING, BRAND AND TECHNOLOGY STRATEGY • Need to understand future consumers: key to meeting eCommerce Centres Market insights and best RETAIL INSIGHTS & PROFESSIONAL SERVICES of Excellence practices their needs, with the right products, through the right Measuring business results, Commercial Leaders ECOMMERCE IN-HOUSE MANAGED channels, at the right time drivers and sizing opportunities TOTAL PERFORMANCE ECOMMERCE ECOMMERCE ECOMMERCE MEASUREMENT TRADING AND MARKETPLACE eCommerce MARKET Optimising online sales AND DIGITAL MEDIA TRADING AND • Shortened product lifecycles: place additional pressure on Managers and Teams DIGITAL SHELF SINGLE ANALYTICS TRADING MEDIA OPTIMISATION COMMERCE brands • Optimising ad placement PLATFORM PLATFORM EXECUTION VIEW via efficient and effective + 1ST PARTY Media Buying PATH TO PURCHASE INSIGHTS • Explosion of digital data: providing new opportunities to DATA • Creating effective VIRTUAL Marketers MEDIA TRADING PLATFORM MEDIA STRATEGY understand behaviour, trends and opportunities campaigns SHARING • via best in class creativity CAMPAIGN BENCHMARKING AND BEST PRACTICE and execution AGENCY OPTIMISATION • Selecting the right partners OUR ADVANTAGE Understand what products to Product Designers PRODUCT TREND FORECASTING create Consumer Insight Understand the changing CONSUMER TRENDS ✓ #1 syndicated product design trend and insight product Managers consumer globally Business Insight, Synching and scaling data and Decision Science, DATA PLATFORM systems Tech Teams ✓ Taking advantage of data from upstream sales segment products to build new data-driven analytics ✓ Large global team of experts to interpret market developments and data, providing value-added insight and longer-term views Introduction to Ascential 10 2019 % Revenue: 32% Advisory Digital MARKETING SEGMENT 37% Subscriptions & Platforms Margin: 37% 11% ECOMMERCE GROWTH AND COMPLEXITY DRIVES NEED FOR OUR SOLUTIONS Growth: +9% Events 52% HOW WE SERVE OUR CUSTOMERS MARKET DYNAMICS • Online advertising growth continues: at the expense of WHO WE SERVE / THEIR NEEDS ASCENTIAL PLATFORM traditional media ASCENTIAL ACCELERATOR C-Suite Strategy guidance • Online spend consolidating: to a small number of mega- MARKETING, BRAND AND TECHNOLOGY STRATEGY players with closed ecosystems and lack of market trust eCommerce Centres Market insights and best RETAIL INSIGHTS & PROFESSIONAL SERVICES of Excellence practices • Greater need to demonstrate and enhance return on Measuring business results, Commercial Leaders ECOMMERCE IN-HOUSE MANAGED drivers and sizing opportunities TOTAL PERFORMANCE ECOMMERCE ECOMMERCE advertising spend: means optimisation and effectiveness ECOMMERCE MEASUREMENT TRADING AND MARKETPLACE eCommerce MARKET Optimising online sales AND DIGITAL MEDIA TRADING AND are increasingly critical Managers and Teams DIGITAL SHELF SINGLE ANALYTICS TRADING MEDIA OPTIMISATION COMMERCE • Optimising ad placement PLATFORM PLATFORM EXECUTION VIEW • Stand-out creativity: becoming increasingly important to via efficient and effective + 1ST PARTY Media Buying PATH TO PURCHASE INSIGHTS cut-through market ‘noise’ DATA • Creating effective VIRTUAL Marketers MEDIA TRADING PLATFORM MEDIA STRATEGY campaigns SHARING • Shift from agency model: to in-house teams and end-to- • via best in class creativity CAMPAIGN BENCHMARKING AND BEST PRACTICE and execution end consultancies, covering the entire customer journey • Selecting the right partners AGENCY OPTIMISATION Understand what products to Product Designers PRODUCT TREND FORECASTING create OUR ADVANTAGE Consumer Insight Understand the changing CONSUMER TRENDS Managers consumer ✓ Global benchmark for excellence and best practice in Business Insight, Synching and scaling data and Decision Science, DATA PLATFORM marketing creativity and effectiveness systems Tech Teams ✓ ‘Must Attend’ event for leaders in the marketing industry ✓ Leading practice assisting brands select agencies and transform marketing operations fit for future marketplaces Introduction to Ascential 11 2019 SALES SEGMENT (1 OF 2) - DIGITAL COMMERCE % Revenue: 38% Advisory 3% Margin: 25% Events Digital ECOMMERCE GROWTH AND COMPLEXITY DRIVES NEED FOR OUR SOLUTIONS 42% Subscriptions Growth: +11% & Platforms 55% HOW WE SERVE OUR CUSTOMERS MARKET DYNAMICS WHO WE SERVE / THEIR NEEDS ASCENTIAL PLATFORM • eCommerce: Continued fast growth of eCommerce driven by technology and consumer shifts and ASCENTIAL ACCELERATOR C-Suite Strategy guidance accelerated by COVID-19 MARKETING, BRAND AND TECHNOLOGY STRATEGY eCommerce Centres Market insights and best • Platform Marketing: Growth of platform marketing RETAIL INSIGHTS & PROFESSIONAL SERVICES of Excellence practices solutions and spend – with Amazon and Ali/JD leading Measuring business results, Commercial Leaders ECOMMERCE IN-HOUSE MANAGED drivers and sizing opportunities TOTAL the way and other platforms following PERFORMANCE ECOMMERCE ECOMMERCE ECOMMERCE MEASUREMENT TRADING AND MARKETPLACE eCommerce MARKET Optimising online sales AND DIGITAL MEDIA TRADING AND Managers and Teams DIGITAL SHELF SINGLE • Set-piece events: becoming more important – Black ANALYTICS TRADING MEDIA OPTIMISATION COMMERCE • Optimising ad placement via PLATFORM PLATFORM EXECUTION VIEW Friday, Singles Day, Prime Day all growing strongly YoY efficient and effective + 1ST PARTY Media Buying PATH TO PURCHASE INSIGHTS DATA • China: continues to dominate global eCommerce • Creating effective VIRTUAL Marketers MEDIA TRADING PLATFORM MEDIA STRATEGY campaigns SHARING • via best in class creativity CAMPAIGN BENCHMARKING AND BEST PRACTICE and execution • Selecting the right partners AGENCY OPTIMISATION OUR ADVANTAGE Understand what products to Product Designers PRODUCT TREND FORECASTING create ✓ Client base:
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