eric eichmann, ceo - criteocriteo.investorroom.com/download/2016+investor+day...you should read the...

Eric Eichmann, CEO

Investor Day, September 2016

Position & Strategy

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2 | Copyright © 2016 Criteo

Safe Harbor Statement

This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information

currently available to management. Forward-looking statements include information concerning our possible or assumed future results of

operations, business strategies, financing plans, projections, competitive position, industry environment, potential growth opportunities,

potential market opportunities and the effects of competition.

Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,”

“believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar

expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other

factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or

achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and

assumptions only as of the date of this presentation. You should read the Company’s most recent Annual Report as filed on Form 10-K, on

February 29, 2016, including the Risk Factors set forth therein and the exhibits thereto, completely and with the understanding that our

actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these

forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-

looking statements, even if new information becomes available in the future.

This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a

reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides to today’s

“Financial Update” presentation. In addition, certain financial information contained herein with respect to years ended prior to December 31,

2013 has been derived from our audited consolidated financial statements that were prepared in accordance with IFRS and presented in

Euros. Financial information contained herein with respect to quarterly periods has been derived from our unaudited condensed

consolidated financial statements.


Broad audience-based advertising

Not tied to business results

Disjointed consumer experiences

Relevant people-centric targeting

Accountable to performance metrics

Seamless advertising experiences

VS.

What marketers want vs. what they get


Three big trends are driving the transition towards marketers’ needs

Programmatic & data-rich

buying with real-time

metrics

Multiple devices &

environments leading to

fragmented experiences

Mobile ubiquity

digitizing offline

activities

More opportunities to drive

performance-based

personalized ads

Strong need for seamless

consumer campaigns

More data and trackable

performance across more

media & sales channels


Programmatic and data-rich buying drive personalized marketing at scale

Source: eMarketer, The Relevancy Group, June 2016; eMarketer, Zenith Optimedia, Cowen and Company; Data-Driven Ad Spending represents the addition of Search and Programmatic

83

101

121

139

158

177

2014 2015 2016E 2017E 2018E 2019E

91% of U.S. marketers

view People-Based

Marketing and

Real-Time Data as

important

Data-Driven Ad Spending (US$ Billions)


Multiple devices & environments lead to fragmented marketing experiences

Source: Cisco VNI, 2016; eMarketer, The Relevancy Group, June 2016; Criteo, State of Mobile Commerce Report

Single

Device

Cross

Device

Multi-Device

94%of U.S. marketers

want to be able to

identify an individual

across channels

and devices

40%of ecommerce

transactions

involve multiple

devices

Open

WebLarge Walled

Gardens

Publisher Landscape

Online Offline

Online / Offline

DesktopMobile AppsWeb Android iOS

Digital Environments


2012 2013 2014 2015 2016 2017 2018

US UK Canada China

2:51

3:23

3:11

CAGR

15%

20%

24%

Mobile ubiquity is digitizing offline activities

Source: eMarketer, April 2016

Mobile time spent per day (in hrs:min)

Beyond more mobile time, it is becoming increasingly possible to leverage offline data and ecommerce

transactions

More and more mobile-first companies are digitizing offline activities

2:22 14%

Our success

is based on providing

relevant, accountable,

seamless

marketing at scale


Our DNA has made us the independent leader in performance marketing

Technology Performance

Scale Global


Technology

We are a disruptive innovator and a pioneer

We brought

performance-based

personalized

marketing

to display in 2008

We have since pioneered the industry in many ways…

Real-time

Creative

Optimization

AOV Optimizer

Privacy by Design

Facebook

Exchange

Universal

Match

Apple-compliant solution

Travel Segments in Engine

Conversion Rate

Optimizer

4bn products imported

from merchants everyday

TO

P!

Daily RTB: 55bn bid

requests,1.2bn wins

Product Category level

CPC bidding

60

0 T

B of Data analyzed

everyday

Largest Hadoop

cluster in EuropeIm

pro

ve

d

collaborative

filtering

Dynamic product bannersTraktor

Engine Optimized Segments

Pa

ss

ba

ck

Sizeless

creatives

On

eta

gApp Deep linking Unique User

Value Prediction

Mobile Ad FormatsApp advertising

Native Ads

Dynamic

Email

Kinetic

Design

Facebook

Dynamic

Ads CPOP

2008

First CPC model in display


Technology

We have developed powerful machine learning technology

We transform data into sales

600 terabytes of shopping intent

analyzed every day on

4bn products*

$60M/day client

post-click sales**

* As of June 2016** $22 billion client post-click sales generated by Criteo over the 12 months ended June 30, 2016


Technology

Creates

Product

Recommendation

Personalized creative

Unique user value

prediction

Our engine solves highly complex problems in real time

Advertiser 2

Advertiser 3

Advertiser 4

Advertiser 5

For each user

Internal advertiser

auction

Publisher/platform bid

Custom ad serving

Less than 100ms to perform the entire process

27,000 ads served/sec600,000+ RTB bids/sec

Advertiser 1Creates

Product

Recommendation


Unique user value

predictionCreates

Product

Recommendation


Unique user value

predictionCreates

Product

Recommendation


Unique user value

predictionProduct

recommendation Personalized

creative

Unique user value

prediction


Technology

We have built a massive data set

Advertisers

Publishers

$500bn client sales from

16,000 terabytes of data from

44trn publisher bid requests and

8bn user engagement actions

Bigger than

Amazon and

eBay

combined

Note: $500 billion client sales are over the 12 months ended June 30, 2016;16,000 terabytes of publisher data is annualized based on Q2 2016 data


Technology

We have by far the largest independent R&D team in the industry

470-strong R&D

& product team

11-year focus on machine

learning that generates sales

Paris- and California-based with

global sourcing of talent


Technology

We are obsessed with technology leadership

Always

A/B testing

new ideas

25,000offline tests in 2014

150,000+ in 2015

190,000in H1 2016

Variables

Display

Button

CategoryColor

Layout

RepetitionRatings

User’s Activity

Publishers

Behavior

EngagementLanguage

&more

variables

15

120+variables

Viewed products

Destination

5 variables

Adding

variables

to engine

120+variables

Enhancing

Dynamic

Creative

Scalable

across all devices and

inventory, in particular

in Native

• Higher Engine

performance

• Attribution for

cross-device

sales

• Additional

user reach

Embedding

Cross-device

Graph

Innovating

on core

algorithms

Click-

through

Conversion

Basket

size

Cost

of sales

Customized

integration

to publishers


Technology

Open Web

Publisher Ecosystems

Our solution works seamlessly across the consumer journey

Web

SocialNative

E-mail

Marketing Channels

Apps

Android Others

IOS

PlatformsLaptop

SmartphoneTablet

Devices

Across …

Desktop Cross-Device


Technology

Privacy by design: trust is a core business principle

Criteo was first with ad choices

and cookie notification on Safari

A user-friendly privacy policy

provides transparency to our methods

Our Global Privacy team is embedded

within the Product organization

Every product and feature is tested for

privacy and security prior to launch

We do not store or process data that

can be used to directly identify a consumer

* P.I.I. stands for Personally Identifiable Information

Transparency

Control

No

P. I. I.*


Performance

The whole company is focused on measurable performance

2,000+ employees focus on client sales as the only metric of success

CPC

model

Transparent

performance

information

through

24/7 client

interface

Constant

optimization

of campaigns

Continuous

tracking

of sales

Established

post-click

attribution

Maximize

Clients Sales

Account Strategy

Technical Solutions

Creative Services

Business Intelligence

Central Sales

Client Service Teams


Performance

As a result, we drive increasing sales for clients

Q2 2013

$6bn

Q2 2014

$10bn

Q2 2015

$15bn

Q2 2016

$22bn

1) Year-over-year growth in Revenue ex-TAC from existing live clients is at constant currency2) Clients post-click sales are calculates over the 12 months ending June 30 of each of 2013, 2014, 2015 and 2016;

Existing live clients’

Revenue ex-TAC1

Client post-click sales

over 12 months2

+35% +40% +52% +32%


Scale

Our large-scale infrastructure supports our performance

High-Performance Computing

Complete

end-to-end integrated

ad serving solution

Huge distributed

data store

Engine decisions in a

few ms, based on

real-time data

Real-Time Stack

31,500processing cores

102,000 terabytes

total storage

26 terabytes

additional data every day Largest

Hadoop Cluster

in EuropeEngine “model” recomputes every hour


Scale

2nd largest global user network*

12,000advertisers**

17,000+publishers**

We have built large-scale networks

Powerful scale &

network effectsMachine-learning

technology

* comScore – Unique Monthly Users – January 2016 – Desktop Only** As of June 30, 2016


Global

We have a truly global footprint

Boston2012

Barcelona2014

Tokyo 2011

Singapore 2013

São Paulo 2011

Shanghai 2016

Palo Alto2009

New York 2011

Chicago2012

London2008

Madrid 2014

Paris2005

Stockholm 2010

Milan 2012

Munich 2010

Amsterdam2011

Beijing 2013

Seoul 2010

Sydney 2011

Dubai2015

Moscow 2014

San Francisco2014

Osaka 2014

Los Angeles2015

Miami2015

Istanbul2015

Toronto2015

New Delhi2016

77 nationalities*

Grenoble2014

31 offices in 19 countries90 countries covered

* Employees


Global

One solution for global companies

1) Over the 12 months ending June 30, 2016

35% of Revenue ex-TAC from

advertisers running campaigns

in more than one country1

On average, multi-market

advertisers are live in 5 countries

20

51 44

32 32

46 34

32 29

1415 12

Number of live countries as of June 30, 2016

So what is the road ahead?

We plan to continue to

• Build our core

business

• Invest in new

growth areas


We have powerful drivers of future growth for our core business

Expand our

client base1Increase our

value to clients2

• Enhance core technology(customer targets, universal catalog, kinetic

design, smart header bidding…)

• Broaden inventory supply(mobile, social and native)

• Grow midmarket global penetration • Leverage our cross-device graph (offer user graph as-a-service to advertisers)

• Expand global presencein particular in APAC, LatAm and MEA


And we continue to invest into new growth areas focused on performance

Manufacturers

OfflineSearch

Customer

Lifecycle

Verticals

Marketing

Channels

ProspectingApp Install

New verticals looking for performance

for products sold online and offline

Acquisition marketing

New channels

The foundation of all our new product investments is

the use of rich data sets on a real-time basis to drive performance

Scale allows pooled assets to drive performance in ways that were not possible before

Video


Advertisers

We are building the world’s performance marketing platform

Consumers

Cross Device Graph

Email

Display

SearchApp Installs

Prospecting

The World’s Performance Marketing Platform

Remarketing

Video

Retail, Travel

& Classifieds

AdvertisersAdvertisers

What we have In development

Manufacturers

Offline

We have a large opportunity ahead of us


Acquisition

Marketing

Core

Total

Net Market

Opportunity$10bn

$9bn

$6bn

$25bn

Search

in Retail

2019 Estimated Net Market OpportunityRevenue ex-TAC basis

We can address a $25bn net market opportunity


Our core market opportunity is massive

1) Source; eMarketer, 2016; 2) Source: Internal Criteo projections based on current performance for uncapped clients (Criteo share of sales and average ROI) and current

Revenue ex-TAC margin

• 2019 Retail & Travel ecommerce $4,300bn1

Market data

2019 Estimated

Net Market Opportunity

in Core Business:

$10bn

Revenue ex-TAC

• Criteo share of sales (uncapped clients)

• Average ROI (uncapped clients) 18x

• Revenue ex-TAC margin 40%

10%

Criteo assumptions2


A product for retail in search can open a meaningful new opportunity

1) Source: eMarketer, March 2016; Adobe, Feb. 2016; 2) Internal Criteo assumptions

• 2019 Search ad spend $126bn

Market data1

• Criteo impact on clients sales 20%-40%

• % of ad spend captured by Criteo 10%-20%

30%• Retail share of Search ad spend

2019 Estimated


in Search:

$6bn

Revenue ex-TAC

Criteo assumptions2


New products in acquisition marketing can bring significant opportunity

* Customer Prospecting, App installs, Manufacturer spend

1) Source: Zenith Optimedia, March 2016; 2) Internal Criteo (Share of acquisition marketing, Revenue ex-Tac Margin)

• 2019 Ad Spend on Display ex. Video $88bn

Market data1

2019 Estimated


in Acquisition Marketing:

$9bn

Revenue ex-TAC • Share of Acquisition Marketing* in Display

• Revenue ex-TAC margin 40%

25%

Criteo assumptions2


We have exciting additional opportunities

Video Offline


Our DNA, strategy and proven execution will make us win

Technology

Performance

Scale

Global

Sustainable

success

Large-scale cross-device graph

VerticalsCustomer LifecycleMarketing Channels

Manufacturers

Prospecting

App Installs

Search

Offline

Seasoned

leadership team

Proven record

of growing

core business

Consistently

exceeding

expectations

DNA

Strategy

Successful

Execution

Video

The World’s

Performance

Marketing Platform

eric eichmann, ceo - criteocriteo.investorroom.com/download/2016+investor+day...you should read the...

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