for personal use only - australian securities exchange2015/12/03 · 2016 growth strategy for...
TRANSCRIPT
1
Crowd Mobile (ASX: CM8 & FWB-XETRA: CM3)
Investor Presentation
December 2015
For
per
sona
l use
onl
y
2
● We are focused on the global mobile economy
● We generate revenue from m-content & m-commerce
Crowd Mobile - What We Do
● We receive m-payments directly from Telcos
● We have connections into 150 telcos in 50+ countries
For
per
sona
l use
onl
y
3
jkhj
● Listed on the ASX under code CM8 and on Frankfurt/XETRA under code CM3
● Our company has been profitable since 2009 and generates free cash flow used for growth
Our Company
● Acquisition of Track Concepts, a global m-payments company in October 2015
● Combined entity generated FY-15 proforma revenue of A$43.1M and A$15.9M EBITDA
For
per
sona
l use
onl
y
4
ASX Code: “CM8” & FWB-XETRA: “CM3”
Ordinary Shares on Issue 154m
7.5m Options @ various strike prices 7.5m
Market Cap (@ 27cents - $AUD)* $41.7m
Cash at Bank ($AUD) as at 30/11/15 $5.0m
Debt (EUR12.5m) $19.2m
Enterprise Value $60.9m
$12.7m rights issue completed in October
*Closing price at 1st December 2015
Share price and market cap rising since listing in January 2015
Corporate Snapshot
For
per
sona
l use
onl
y
5
A Global Operation
● Headquartered in Melbourne
● Offices in Amsterdam, Berlin and Budapest
● Over 65 employees in the group
● Reach into 50 countries globally*
Berlin, Marketing
Budapest, Operations
Amsterdam, Track
Melbourne, Headquarters
11
4
6
30
Number of countries operating
* Country Reach signifies the number of countries Crowd Mobile is in across each Continent (unaudited)
% of revenue contribution
14%
1%
73%
12%
Extended Global m-payment Reach
● 88% of revenue comes from outside Australia
For
per
sona
l use
onl
y
6
wewe
617BN
M-payments
transaction
value by 2016
Global Mega Trends We Capitalise On
6.1BN
Smartphone
subscriptions
in 2020
1.1TN
Global DCB/
PSMS Volumes
in 2017
Sources: Ericsson; Frost & Sullivan; Gartner
For
per
sona
l use
onl
y
7
In-House Developed Content Licenced Content
Single Purchase & Subscription
Consumers
Reach of
approximately
1.4billion consumers
Gateways
Gateways provide
the infrastructure to
the Telecom Operators
Digital Marketing to
acquire customers
Telcos/Apple/Google
Crowd Mobile Value Chain
Content Creation, Marketing and m-payments
m-paymentpayment
Aggregated
payment
For
per
sona
l use
onl
y
8
● Diverse range of ‘frictionless’ Apps
● Strong in-house content capability
● Entertaining, high engagement focus
● Building communities creates ‘stickiness’
Product Portfolio
For
per
sona
l use
onl
y
9
Product Portfolio
Diversified Product Mix
Downloads
• Downloads consists of
content that consumers
can download for a fee
• Content includes games,
ringtones, music and
videos
• Downloads available on
web, mobile and apps
Apps
• Apps contains applications
for consumers’
smartphones.
• Capability in both iOS and
Android for maximum
distribution
Entertainment
• Entertainment primarily
consists of HTML5 games,
music & videos that
consumers can play, watch
or listen.
• Games represent a high
value segment
For
per
sona
l use
onl
y
10
How Our Q&A Apps Work
● Completing micro tasks
● Answering questions
“I want to go on holiday to
Barcelona. What is the
best month to travel on a
student budget?”
“We suggest September after the
peak season for better priced
hostels. There are some great
festivals in September. Here are
some helpful links: Hostels and
all you can eat festival passes.
Click to buy*“
● *Potential to generate revenues via m-commerce affiliate fees
For
per
sona
l use
onl
y
11
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16
Paid Messages Q1 FY15 to Q1 FY16
Up 108%
12%
Increasing Q&A Message Volumes
● 8.0m million billed messages current year run rate
● Reaching 2 million paid messages per quarter
● 5.7 million billed messages last year = $13M
For
per
sona
l use
onl
y
12
Answering circa 700k paid questions a month
Over 1,000 Experts
30 languages
24/7 platform manages all jobs globally
Many years investment in our micro job platform
Scaleable to any new Apps
Our Competitive Advantage
Micro job platform and network
The Crowd Mobile Globally Distributed Workforce
For
per
sona
l use
onl
y
13
Q&A Apps can be anything on a continuum from Entertainment, Infotainment to Professional
services with corresponding increases in price points to customers
Future Mobile Apps
For
per
sona
l use
onl
y
14
3rd Party App Strategy
● Focus on Apps to promote with 3rd parties
● Centred around known brands and events
● Revenue share with the brands signed
● Recent Geordie Shore/Dapper Laughs deal has 7M people social reach
● Numerous others partnerships in pipelineFor
per
sona
l use
onl
y
15
Notes:
*CM8 accounts underlying EBITDA included. Track accounts are unaudited
** Unaudited November 15 result (first month post acquisition of Track)
Rounded to the nearest 000’s
AUD/EUR exchange rate 0.696 (average exchange rate for FY15; Source: OANDA.com)
AUD - $000s CM8 Track Total
Revenue 13.0 30.1 43.1
Gross profit 8.3 16.5 24.8
Expenses 6.2 2.7 8.9
EBITDA* 2.1 13.8 15.9
Proforma FY-15 Financials & November 2015
Combining both CM8/Track ($AUD)
NOV 15**
4.0
1.1
For
per
sona
l use
onl
y
16
CrowdMobile Mobile Embrace Freelancer Moko Mobile MigMe
Ticker CM8+ MBE** FLN*** MKB** MIG***
Description M-Content,
M-payments &
M-commerce
Integrated
m-payments &
marketing
Online outsourcing
marketplace
Mobile apps and
social advertising
platform
Mobile social
entertainment
FY15 Revenue ($M) 43.1+ 33.0 33.6 6.2 6.0
FY15 EBITDA ($M) 15.9+ 5.1 -2.0 -19.6 -15.0
Share Price (cents) 27c 37.5c 173c 3.9c 93c
Market Cap/EV ($M) 60.9m+ 148m 825m 31.9m 204m
Revenue Multiple 1.4x 4.4x 24.6x 5.1x 34.0x
EBITDA Multiple* 3.7x 29.2x N/A N/A N/A
Note: All share prices as at closing 1st December 2015 taken from ASX and in $AUD
+CM8 – Based on Proforma FY15 Financials excluding shared based payments and acquisition transaction costs / CM8 Market cap = Enterprise Value
** MKB & MBE FY15 Annual Results (excluding share based payments)
*** FLN & MIG results 1H15 4D annualised (excluding share based payments)
Peer Analysis
Trading on an attractive valuation
For
per
sona
l use
onl
y
17
Theo Hnarakis (Non Executive Chairman)
Brings a wealth of experience working in the media industry and scaling Australian ASX listed technology businesses. He graduated from The University of SA with a Bachelor of Accounting and has held senior roles with News Corporation, Boral Group, PMP and was the Managing Director and CEO of Melbourne IT until 2013. Mr Hnarakis is also a non-executive Director of Newzulu Limited (ASX: NWZ).
Domenic Carosa (Executive Director & Group CEO)
Over 20 years of experience in technology and ASX listed companies including building destra into the largest independent media & entertainment company in Australia with revenues of over $100M. Domenic is also Non-Executive Director of Shoply Limited (ASX:SHP), and Collaborate Corporation Limited (ASX:CL8).
Hans de Back (Executive Director & Track CEO)
Has significant experience across multiple high-technology industries including mobile, gaming, and social media. He holds a Masters degree in corporate law from Amsterdam University and has extensive international experience having worked with companies Globally. Mr. de Back is currently the Managing Partner at Incubasia Ventures working with innovative and scalable technology companies.
Sophie Karzis (Company Secretary)
Member of the Law Institute of Victoria and the Institute of Chartered Secretaries. She is a practising lawyer with over ten years experience as a commercial lawyer, and company secretary and in house counsel for a number of private and public companies.
Board of Directors
Global Experience and Expertise
For
per
sona
l use
onl
y
18
Christian Shaw (CFO)
Over 20 years of ASX, NASDAQ and technology company
experience including Moko Social Media (ASX: MKB), Sunshine Heart (NASDAQ: SSH) & iCash (ASX: ICP). (Location: Melbourne/
Europe)
Tobias Schlitzke (COO)
Manages the growth and operations of the company across multiple countries
and time zones. Significant experience in start-up and
growth focused roles including Swisscom (Location: Europe)
Iain Clark (CTO)
Ensures that Crowd Mobile’s core technology
platforms globally are running and that new
products are released on time. Previously with
Goldman Sachs. (Location: Melbourne)
Gregor Cooney (CMO)
Responsible for Crowd Mobile’s global expansion
strategy including establishing relationships with MTV and other key
partners. (Location: Europe)
Global Executive Team
Experienced, Driven, Aspirational
For
per
sona
l use
onl
y
19
1. Double the global m-payment distribution network into new regions to
increase the addressable market
2. Rollout new apps, maximise impact of current products and license new
products
3. Expand 3rd party partnerships such as brand ambassadors or app joint ventures
4. Acquire strategically relevant companies to add customers, products,
territories or relationships
2016 Growth Strategy
For
per
sona
l use
onl
y
20
2016 Value Drivers
● Recurring revenues from Track’s Direct Carrier Billing products
● Global consumer footprint generating recurring & diversified revenues
● Growing suite of high value products
● Ongoing micro m-payments from telcos
● Joint ventures with major brands for Q&A apps
● Cashflow to retire debt rapidly and acquire new entities
● Capitalising on the global mega trend for mobile transactions
For
per
sona
l use
onl
y
21
Contact
Participate in the Future of Mobile
Entertainment and Mobile Commerce
Domenic Carosa
For
per
sona
l use
onl
y
22
Disclaimer
The material in this presentation has been prepared by CrowdMobile Limited (ASX: CM8) (“CM8") and is general background information about CM8’s activities current as at the date of this presentation. The information is given in summary form and does not purport to be complete.
In particular you are cautioned not to place undue reliance on any forward looking statements regarding our belief, intent orexpectations with respect to CM8’s businesses, market conditions and/or results of operations, as although due care has been used in the preparation of such statements, actual results may vary in a material manner.
Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities.
Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice.
Non-IFRS Financial Information
CM8’s results are reported under International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures including, “proforma”, “underlying” and “look through”. These measures are used internally by management to assess the performance of our business and our associates, make decisions on the allocation of resources and assess operational management.
Non-IFRS measures have not been subject to audit or review. All numbers listed as reported comply with IFRS.
Disclaimer & Non-IFRS Information
For
per
sona
l use
onl
y