europe’s leading partner in performance-based digital marketing –
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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 - PowerPoint PPT PresentationTRANSCRIPT
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
• 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
76 percent reach of the European internet users
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
Jan-Mar Jan-Mar Full year
MSEK 2010 2009 2009
Net sales 709 844 3,014 -9%
Gross profit 164 187 690 -5%
Total costs * -148 -160 -795 -6%
Operating profit 16 27 -105 -1%
Profit before tax 9 28 -127
Net profit 3 20 -178
Profit per share (SEK) 0.07 0.59 -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.
7
Regional development
• Improvement in the UK and stable development in Southern Europe• Improving results in local currencies
MSEK Jan-Mar Jan-Mar Full year
Gross profit (GP) 2010 2009 2009
Central Europe 32 37 145 -5%
Northern and Easter Europe 23 26 95 -6%
UK and Ireland 36 45 160 -12%
Southern Europe 73 79 290 0%
Total 164 187 690 -5%
Operating profit (EBIT)
Central Europe 16 22 79
Northern and Easter Europe 8 13 44
UK and Ireland * 18 25 -109
Southern Europe 47 55 186
Parent Company and eliminations -73 -88 -305
Total 16 27 -105
YoY Variance in local
currency
8
Margin development
20.921.9 21.7 22.3
21.422.2 21.5
22.521.3 21.3 21.1 21.2 20.9
6.5 6.2
9.8 10.19.0 8.5
9.9
15.0
12.6
0.0
5.0
10.0
15.0
20.0
25.0
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
12
Consolidated balance sheet31 Mar 31 Mar 31 Dec
SEK 000s 2010 2009 2009
Assets
Intangible fixed assets 450,748 657,664 477,276
Tangible fixed assets 20,653 22,212 21,425
Financial fixed assets 2,388 2,410 2,520
Deferred tax assets 27,719 52,761 28,831
Total fixed assets 501,508 735,047 530,052
Accounts receivables 603,061 677,264 657,049
Tax assets 44,518 - 21,454
Other receivables, prepaid expenses and accrued income 38,180 60,288 80,427
Cash & cash equivalents 148,201 151,088 436,596
Total current assets 833,960 888,640 1,195,526
Total assets 1,335,468 1,623,687 1,725,578
Shareholders' equity and liabilities
Shareholders' equity 473,490 333,907 480,507
Subordinated loan - 50,000 50,000
Deferred tax liabilities 17,650 16,578 23,862
Total long-term liabilities 17,650 66,578 73,862
Current interest-bearing liabilities - 207,500 192,065
Accounts payable 78,312 189,382 127,432
Current liabilities to publishers 386,084 425,221 418,615
Tax liabilities 3,668 48,589 -
Other liabilities, accrued expenses and deferred income 376,264 352,510 433,097
Total current liabilities 844,328 1,223,202 1,171,209
Total shareholder s equity and liabilities 1,335,468 1,623,687 1,725,578
Consolidated cash flow statement
Jan-Mar Oct-Dec
SEK 000s 2010 2009
Operating activities
Profit before tax 8,662 23,452
Adjustments for items not included in cash flow 9,891 7,229
Tax paid -26,927 -13,223
Cash flow from changes in working capital -70,967 89,754
Cash flow from operating activities -79,341 107,212
Cash flow from investing activ ities -3,341 -867
Cash flow from financing activ ities -199,245 295,377
Cash flow for the period -281,927 401,722
Cash and cash equivalents
On the opening date 436,596 40,505
Translation difference -6,468 -5,631
Cash and cash equivalens on the closing date 148,201 436,596
Jan-Mar
2009
27,564
9,831
2,324
10,335
50,054
-3,195
-29,327
17,532
133,389
167
151,088
13
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
1Boost revenues and
gross profit
Operational excellence
Continued focus on cost reductions and
cash flow
2
3
16
Profitable growth focus
17
Questions
Urban Gillström, CEO and PresidentT +46(0)8 40 50 800 | M +46 (0)70 785 76 00E [email protected] Bernt Andersson, Acting CFOT +46 (0)8 40 50 800 | M +46 (0)766 76 17 E bernt.andersson@ tradedoubler.com
Thank you!
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Apppendix
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Geographical segments
Northern and Eastern Europe Central Europe Southern Europe UK and Ireland
Finland Denmark Belgium UK
Lithuania Poland France Ireland
Japan Germany Italy
Norway Switzerland Netherlands
Russia Austria Portugal
Sweden Spain
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