january conference presentation · 2 jegi | clarity core sectors b2b marketing, events and...

1

Managing Director

2

JEGI | CLARITY Core Sectors

▪ B2B marketing, events and conferences▪ Agency, research and consulting services▪ Business information and info services

B2B Media, Marketing & Information

▪ B2C media and digital publishing▪ Commerce-enabled content and lead gen ▪ Entertainment, video and social content

Consumer Media &Entertainment Content

▪ eCommerce software and solutions▪ Digital advertising & marketing automation▪ Media measurement and marketing analytics

AdTech, MarTech & eCommerce

▪ Talent management▪ Governance, risk and compliance solutions▪ HR and legal data and analytics

RegTech, Legal Tech & Human Capital Management

1

Managing Director Managing Director

2

New Solutions

Evolved Business Models

Vertical Marketplaces

Active & Decisive Portfolio ManagementScaled

Positioning

Active Pruning

Large Corporate Consolidators

Private Equity Platforms

3

acquisition

revenue

“Combining Thomson Financial with Reuters will create one of the two top providers of financial information in the world. Thomson Reuters will be a world leader in electronically delivered critical information and decision support tools for businesses and professionals”

Tom Glocer, CEO Thomson Reuters

4

Sales & Trading

Major brands & categories

Healthcare

Enterprise

Tax & Accounting

Media

Legal

Scientific

Investment & Advisory

Source: Thomson Reuters filings

5

$7.3 $7.2

$6.6 $6.5

$6.1 $6.1 $6.1

2011 2012 2013 2014 2015 2016 2017

(1.0%) (1.0%)

2.0%

0.0%

(1.0%)

0.5%

2.0%

(0.8%)

1.0%

average In four out of nine years over the

period


6

“

Shift from product focus to customer focus

Target growing customer verticals in which they can

be market leadersDrive deeper into customer

channels/ solutions

7

Sold Healthcare (Oct 2016)

sale

Focus on growth not scale$12bn revenue in 2015 $5.5bn revenue in 2018

Become smaller to grow faster

revenue

Sold 55% of Finance & Risk (Oct 2018)

cash proceeds revenue


8

43%

22%

14%

7%

13%

Focus on key verticalsHigh growth underlying markets

Customers where there is a strong channel buyer overlap

80% revenue from professionals at the intersection of commerce

and regulationTax

Corporate

Legal


9

October 2019

July 2019

November 2018

Global events platform

Legal SaaS

GTM SaaS

10

(2.0%)

(1.0%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 2019 2020 2021

average revenue growth




11

40

50

60

70

80

90

100

Source: S&P Capital IQ

13

Sir Richard Winfrey Acquires Local English Newspapers1887

14

East Midland Allied Press (EMAP)

Expanded Consumer Reach With Consumer Publications1960-90

15

Entered B2B And Became A $2bn+ Revenue Media Powerhouse1995

16Source: S&P Capital IQ

+B2B Media Assets

17

Duncan PainterCEO

2016 IPO$1.1bn

16x

EBITDA Multiple

Events

4.8x

EBITDA Multiple

+

2011 2014 2016 20172008 2018 Today

▪ eCommerce data analytics

▪ Driving sales through e-tailers

▪ Subscription model

▪ eCommerce optimization & performance measurement solutions

▪ Going deeper into the solutions set for sales enablement

▪ Consultancy – Deepening the product suite

▪ Marketing effectiveness insights

▪ Digital subscription information


18

Ascential Today: Enabling Consumer Products Companies to Maximize the Product Journey

Sales Product Design

Marketing

Consumer Behavior

Data

✓ Performance & Measurement

✓ Digital Shelf Optimization

✓ Pricing & Promotion

✓ Retail Strategy

25%Revenue Growth H1’ 19

✓ Influencers & Communities

✓ Consumer Motivations

✓ Product & Packaging

✓ Best Practice

✓ Media Strategy & Management

✓ Effectiveness Measurement

✓ Media Optimization

✓ Partnerships

21%EBITDA GrowthH1 ‘19

19

… for sharper focus on markets served

… targeting best growth sectors with defensible market leadership potential

… to expand wallet share and ecosystem relevance

… to transform models and margins

… to outperform the category and drive premium valuation in the marketplace

Acquisitions 140Divestitures 61

*Since 2007 Reuters Deal

Acquisitions 17Divestitures 9

*Since 2008 Apax/Guardian Deal


1

Managing Director Managing Director

2

1,290 1,282

2010 2019 2010 2019

# Corporate Divestitures (US) Value Corporate Divestitures (US)

2019

234% Increase

2010

$297 mm$89 mm

Average Deal Size – Corporate Divestitures (US)

$115 B$380 B

Source: Pitchbook

3

$181

$212$235

$252

Inactives Focused Divestors Frequent M&A Frequent andMaterial M&A

Annual Shareholder

Return6.1% 7.8% 8.9% 9.7%

Focused Divestors

+39%

What $100 Invested In 2005 Returned At The End Of 2015

Source: Bain Capital

4

S&P 500 Shareholder Return Since 2010 = 190%

10 Year Return = 450%Acquisitions

Tech

Health

10 Year Return = 308%Acquisitions Divestitures

Assets

10 Year Return = 754%Acquisitions

TALENT ASSESSMENT

METRICS THAT MATTERCHALLENGER

WORKFORCE SURVEYS & ANALYTICS

Divestitures10 Year Return = 484%

Acquisitions Divestitures


5

1.7x

0.9x

2019

2010

Median Revenue Multiples (US)

11.1x

5.6x

2019

2010

Median EBITDA Multiples (US)

Entire M&A market –Revenue multiples increased 73%

89% Increase 98% Increase

Entire M&A market –EBITDA multiples increased 31%

Source: Pitchbook

6

Private equity has raised $4.5T in the

past decade$614 $594 $557

$669 $681 $744 $829$1,026

$1,213

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Global PE Dry Powder ($B)

5,111

2019

4,034

2010

Number of firms increasing nearly

30% across the decade

Global # PE Firms

$1,500

$614

Sources: Pitchbook, Prequin

7

# M&A Deals With PE Buyer (US) # Corporate Divestitures With PE Buyer (US)

2,7843,883

2010 2019

286

409

2010 2019PE accounts for 62% of all

US M&A DealsPE accounts for 33% of allUS Corporate Divestitures

Source: Pitchbook

8

Failure To Understand Future Value

9

Action Driven By Short Term Financial Need Instead Of Strategy

10

$181

$212$235

$252

Inactives Focused Divestors Frequent M&A Frequent andMaterial M&A

Annual Shareholder

Return6.1% 7.8% 8.9% 9.7%

Focused Divestors

+39%

What $100 Invested In 2005 Returned At The End Of 2015

Source: Bain Capital

11

More rigorous approach to portfolio management1

Buyer universe continues to evolve (i.e., PE and cross-border/multi-national)2

PE evolution in divestitures – messy/challenging to value creation/opportunity3

Increasing use of technology, data and analytics in making acquisitions/investment decisions

4

Sellers more sophisticated and buyers more demanding in their approach to divestitures (i.e., QofE, Market Study)

5

12

45 corporate divestitures over the past 10 years

1

Managing Director Director

2

Consumer expectation for engagement is radically redefining digital marketing and raising the bar for technology and marketing services providers.

Identity Graph & CDP

Global Content Workflow & Creation

Performance Marketing Orchestration

3

First transaction facilitated online?

First secure retail transaction on the Internet?

4

Global eCommerce Growth & Retail Share($ trillions)

$1.1 $1.3 $1.7 $1.9$2.4

$2.8$3.4 $4.0

$4.8

$5.8

5.10%6.30%

7.40%8.60%

10.40% 10.2%

11.7%

13.5%15.3%

17.3%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

0

1

2

3

4

5

6

7

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Global eCommerce Sales

% of Total Global Retail Sales

17% Retail

Share in 2022

Source: eMarketer

20.29% Growth (CAGR)

5

Digital Marketing & Commerce Tech Stack

Over $75 BN in Stack M&A in Last 5 Years

6Source: Acute Market Reports, JEGI

Global Digital Commerce Software Market($ billions)

$5.3 $6.3 $7.5 $8.9$10.6

$12.7$15.1

$18.0$21.4

2018 2019 2020 2021 2022 2023 2024 2025 2026

19.1% CAGR

19% Growth (CAGR)

$21+ BN Software Spend per

Year

7Source: MarketsandMarkets, Zion Market Research and JEGI

Global Digital Transformation Industry($ billions)

$151$290

$404$665

$927

2015 2018 2020 2023 2025

18.1% CAGR

The Transaction is the Experience

8Source: eMarketer

US Advertising Spend by Category($ billions)

$109$129 $151 $172 $188 $202

$72$70

$71$70

$70$69

$42$39

$36$34

$32$31

$224$239

$259$277

$290$302

2018 2019 2020 2021 2022 2023

Digital surpasses traditional

spend

Mobile-First:2/3+ Mobile

5G AcceleratesChange

AdSpend

Digital

TV

Other

9Sources: Acute Market Reports, 451 Research, MarketsandMarkets, Forrester, Statista, PwC1) eCommerce CAGR is 2018 – 2022; other CAGR figures are 2018 – 2023

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Brand Family

Execution Production Workflow Integration

DigitalChannels PLA

Versioning Mobile PLAs Video Ad Product Specs Reviews & UGC

Parent Corporation:

Digital Assets

Localization Geography Language Culture

Affiliate/Partner Marketing

Product Images Video Lifestyle ScenesAR/VR

Visual Merchandising

►

11

(Technology & Workflow) (Integration, Dynamic Delivery and Iteration)

(Plan, Produce, Manage) (Technology & Workflow)

Global Content Creation and Workflow

Tagged

SupplierGateway

SupplierEnablement

Services

Social

eComm

Mktg

Partners

FTPImage, Motion

& Sound

3D Visualization

Digital + Interactive

Creative Resource Management and Deployment Platform

Studios & Content

Labs

Tagged

SupplierGateway

SupplierEnablement

Services

12

Search Term

Review Site

Brick & Mortar

DTC Brand

Sponsored Placements

Product Listings

13

1. Journey and destination controlled by the 3 major tech platforms

2. Massive amount of unstructured data from multiple sources

3. Restrictions on access to “traditional” digital marketing data with increasing regulations

14

▪ Persona Development▪ Identity Graphing▪ Purchase Patterns▪ Lifetime Value▪ Location Data▪ A/B Testing

▪ Data Science▪ Predictive Analytics▪ Optimization

▪ Marketplace/Amazon Advertising

▪ Paid Search & PLA ▪ Paid Social▪ Programmatic▪ Affiliate▪ SEO▪ CRM & Email▪ Creative Services

▪ Persona Development▪ Identity Graphing▪ Purchase Patterns▪ Lifetime Value▪ Location Data▪ A/B Testing

▪ Data Science▪ Predictive Analytics▪ Optimization

Digital performance marketing deploying expert practitioners and platforms to deliver results across the "Triopoly"

15

Integration of Customer Data Platforms and the Identity Graph

16Source: Emailvendorselection.com

Demographic

Behavioral

Engagement

Transactional

Mobile / Device

Email

Web / IP

Mobile

Social

Offline

Marketer-managed system that creates a persistent, auto-appending and unified customer database that is accessible to other systems

17

Robust database that stores identifiers that correlate with individual customers

18

Known & Unknown User Interaction

✓ Site Visits✓ Mobile Visits✓ Geofencing✓ Direct Mail✓ Search✓ Social✓ Email

Profiled Users with Digital IDs

1

2

Identity Graph

Integrated Data Lake

IP, Email, and Mobile Graph

PRIZM

PRIZM

15

29

10

1

2

3 3

Execution

2.4

1.6

17.3

Search Conversion

ConversionSocial

Display In-Store

Distribution Partners Attributions & ScoringExecute Against

Audience1

2

3

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• The opportunity is massive• The customer journey and experience is the product• Fast movers are addressing a complex market need, across

➢ Content and ecommerce execution➢ Performance marketing; and➢ Customer data and identity

• Leaders are tightly integrated with clients, and• It's all powered by technology infrastructure

Pace of PE investing and strategic acquisitions will accelerate

january conference presentation · 2 jegi | clarity core sectors b2b marketing, events and...

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