mailup group presents ”a marketing technology story” · advanced digital marketing automation...

MAILUP GROUP PRESENTS

”A MARKETING TECHNOLOGY STORY”ABOUT SAAS, BIG DATA, ARTIFICIAL INTELLIGENCE, MESSAGING AND MORE

Investor presentation – April 2018

INTRODUCTION

AGENDA

STRUCTURE AND ORGANIZATION

GROWTH STRATEGY

KEY FINANCIALS

KEY PEOPLE & SHAREHOLDERS’ STRUCTURE

STOCK PERFORMANCE AND VALUATION RELATIVE TO COMPARABLES

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INTRODUCTION

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ABOUT US

MailUp SpA (“MailUp Group”) is a leading industrial group active

in the fast-growing online marketing technology industry

offering a broad spectrum of solutions to its several thousand

customers, with a focus on data-driven omni-channel

marketing automation.

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BUSINESS MODEL AND MAIN FEATURES

Email and mobile messaging delivery are the core activities, complemented by sophisticated email editing tools, innovative marketing technology solutions and professional consulting services.

Most of the above-mentioned services/solutions are delivered via in-house SaaS-based proprietary engines offering high quality, price competitiveness and generating sound recurring revenues cashed in upfront via subscriptions.

All tools/solutions are offered unbundled or combined into more structured workflows and are provided by the various companies of the Group in a highly synergic way.

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MARKET OPPORTUNITY

The Marketing Technology

sector “MarTech," (i.e., a cloud-

based ecosystem of marketing

strategies, solutions, and tools)

has expanded by 40% to 6,839

solutions this year, creating

new opportunities within the

sector. (Source: chiefmartech.com)

Email and SMS remain

respectively the most widely

used and fastest growing

digital marketing channels,

and more and more are used

in combined marketing

strategies. New channels

(Messenger, Whatsapp,

Telegram…) add more

opportunities.

In 2016, the global email

marketing market has totalled

at US$4.51 bn. It is expected that

the CAGR will rise at 19.6% and

that the market will reach

US$22.16 bn by the end of 2025.

In addition, the worldwide email

marketing spend will reach $9.1

bn by 2020.(Source: Transparency Market Research)

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MAIN FEATURES

Currently, MailUp Group’s services are delivered to several thousand customers

worldwide (ca 18,600 customers and 940 resellers). MailUp is one of the few

players offering its solutions to both marketers (end-users) and developers. In

2017, more than 21bn messages sent from clients across 115 countries

Net Cash Position at €7.3m and improved cash conversion rate (i.e., EBITDA to

OpFCF at ca. 70%)

Thanks to its scalable and subscription-based business model, MailUp Group

is growing fast in double-digit space both for topline and profitability (in FY17

Revenues and EBITDA up +26% and 19% YoY respectively)

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HISTORICAL MILESTONES

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2004MailUpwas launched

2006APIIntro-duction

2006SMS channel is added to the

Offered services

2014Developerplatform

2014IPO on AIM Italia stock market. (2013 Revenues €6.6mn)

2015Acquisition of Acumbamail(*), Agile Telecom (**), Globase(**)

2015Start to develop BEE

2016BEE is spun-off and becomes an independent business unit

2016Revenues€21mn

2017

ONWARDSMarketing technology + Developers

2017MailUp 9 is introduced in February. Mailcultacquisition

MailUp was born (bootstrapped) in Italy back in 2002 and has rapidly grown internationally, either

organically or by acquisitions, being now active in Europe, Americas, Asia and ranking among top ten

European players. MailUp is a public company listed since 2014 on AIM Italia (SME Growth Market).

(*)Consolidated as of 2015FY(**)Consolidated as of 2016FY

STRUCTURE AND ORGANIZATION

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BUSINESS MODEL BASED ON A CONGLOMERATE APPROACH

Parent company (i.e., the holding) provides to all legal entities advisory in terms of business strategy, M&A and fundraising operations, IT and administrative activities as well as HR and legal support.

Companies within the group tend to share their experiences and knowledge with each other, providing valuable advantages to every member of the organization, making easier the finding of network opportunities among the other things.

Five business units

MailUp Group structure involves one parent company and principal subsidiaries

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MailUp SpAEstablished as an email service provider vendor, the Italian subsidiary now delivers customers with its multichannel digital cloud platform, offering high-quality solutions with a "get what you want approach.“

• Market leader in the Email and SMS marketing & automation in Italy and among top five-ten players in Europe.

• More than one hundred employees

• ca. 21bn messages sent per year

• 11,000+ clients in 2018

www.mailup.com

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http://www.mailup.com/

Agile TelecomBased in Italy, as an outright wholesale SMS factory, the subsidiary is a telecom provider (OLO, Other Licensed Operator) that offers SMS delivery both promotional and transactional messages (One-Time Password/ Notifications/ Alerts and so on). Leading positioning in the SMS industry in Italy with ca. 380mn SMS sent per year, 3,700 customers and 14 employees. www.agiletelecom.com

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http://www.agiletelecom.com/

AcumbamailSpanish based email marketing provider, it also offers SMS packages and transactional services with a freemium business model suitable for micro-small businesses. It allows customers to create, send, and manage their single or multi-communication campaigns by also tracking real-time performance. In numbers, 400mn emails sent per year, ca. 2,500 customers and 7 employees www.acumbamail.com

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http://www.acumbamail.com/

GlobaseEstablished in Denmark, it delivers advanced digital marketing automation software for business and professional consulting services. It allows customers to create communication campaigns with data-driven personalization, audience segmentation (i.e., targeting a specific audience), all giving the possibility to track the effectiveness of the marketing campaign by analysing related statistics. In 2017 ca. 300mn emails sent, 124 customers and 6 employees.

www.globase.com

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http://www.globase.com/

BEE (MailUp Inc)Organised according to the dual company model, with business team in USA and technological team in Italy, the American start-up based in Silicon Valley focuses its activities on the development and commercialization of the email editing tool BEE (i.e., innovative tool for the creation of emails and landing pages). Today BEE is a world leading product used by millions of email designers. www.beefree.io

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http://www.beefree.io/

Business unit

Revenues (€mn) EBITDA (€mn)

2016A 2017A △% 2016A 2017A △%

MailUp 9.9 11.7 19% 2.6 2.8 7%

Agile Telecom 9.7 14.7 52% 1.4 1.4 -1%

Acumbamail 0.5 0.7 59% 0.1 0.3 105%

Globase 1.7 1.0 -40% -0.1 -0.5 -367%

BEE 0.5 0.5 16% -0.1 0.0 81%

Holding 0.6 1.1 85% -1.3 -1.0 22%

Intercomp. elisions -1.7 -2.6 nm - - nm

TOTAL 27.3 21.1 31% 2.6 2.9 10%

Business units key financials

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Revenue breakdown by business line and by business unit

Email 34.5 %

SMS, 58.3 %

Email editor/BEE 1.8 %

Other 3.2 %Prof.services 2.2 %

MailUp 42.8 %Agile Telecom 49.4 %

Globase 3.4 %

BEE 2 %Acumbamail 2.4 %

MailUp Group: FY17 Revenues contribution by business unit

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€mn

MailUp Group: FY17 EBITDA contribution by legal entity

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EBITDAFY17Globase HoldingBEEAgile Tel.

MailUp Acumbamail

€m

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GROWTH STRATEGY

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INVESTMENT CASE

Exploiting positive Net Cash Position to finalize further M&A deals aiming at

Widening geographical footprint, and gaining further know-how via the acquired companies

Adding new modules/tools to the already diversified portfolio, focusing mainly on:- Customer Data Platform,- Data Driven Omnichannel

Marketing Orchestration,- Marketing Automation,- Advertising,- Personalization.

Boosting ARPU and avoiding competition by commoditization effect

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Developing innovative in-house solutions, and exploiting BEE growth potential in

becoming the global market standards editor for email and landing page creation.

The startup based in Silicon Valley is achieving excellent results, with steady growth

in all business KPIs: customer acquisition, (ii) churn rate, (iii) growth.

Capitalising on R&D efforts to ride the Marketing Technology evolution

Scaling up from mere service provider to consultancy advisor in the MarTech field,

providing more and more professional services to current domestic customers

Expanding the set of integrated solutions with third-party companies, offering

developers the option to connect and synchronize platform with an external

database, CRM, CMS, e-commerce and any other external application

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• Sharing of best practices, experiences, code and knowledge

• Maintaining an unbundled approach to better address different segments / markets.

Pushing for higher intragroup synergies thanks to cross-fertilization

among group companies

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Maintaining a financially robust business model

Limited Capex absorption

Favorable working capital dynamics given the subscription-fee-business model based characterized by advanced payments and service deliveries in a subsequent stage

Absence of Bad debt risk

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Applying managerial best practices in revamping and optimize acquired assets from a

technological and financial point of view, delivering strategic thinking, technological solutions

and marketing know how. Two case studies:

Agile Telecomacquired back as of 2015 year-end, has recorded excellent results over

the last years. Since first-semester post-acquisition (1H16), the legal

entity has kept a steady and healthy growth, reaching a total turnover

of €9.7mn and €14.1mn in 2016 and 2017 respectively.

These crucial achievements are strictly related to the successful

implementation of intragroup synergies, which led to an overall

increase in the volume of messages, more than doubled with respect to

pre-acquisition ones.

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M&A case studies

Acumbamailacquired by MailUp Group back in August 2015, it achieved

outstanding results, with more than doubled monthly revenues

(+167% increase, passing from €22,400 in August 2015 to an

average of €60,000 during 2017) and a constant double-digit

quarterly average growth of paying clients (exceeding 2,500

units as of the end of December 2017).

However, behind this increase in numbers, the legal entity has

also highlighted a significant growth in clients quality.

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KEY FINANCIALS

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FY17: Double-digit growth and positive cash generation

Group Revenues up +26% YoY, with all legal entities/business lines growing healthy but for Globase, in the middle of a turnaround

Net Cash Position at €7.3mn, as a result of both a successful €6mn accelerating book building and of positive operating cash generation

EBITDA increased by +19% YoY, even if still negatively affected by (i) investment in the corporate structure, (ii) Globase and BEE reported losses

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Steady growth pace expected at the top and bottom line level

(Source for estimates: Value Track equity research reports)

Net Revenues estimated to grow in the double-digit space (+14% and +11% YoY over 2018E-19E), driven by a higher market share and an increase in ARPU, thanks to the launch of more sophisticated tools/solutions

Net Profit should exceed €1mn in 2018E, slightly affected by capitalized R&D costs

Operating profitability should progressively increase (EBITDA margin expected at 12.1% and 13.8% in 2018E and 2019E) as a result of (i) higher intra-group cost synergies, (ii) positive contribution from Globase, with break-even expected in 2018E, and (iii) massive upward shift from BEE ongoing profitability

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Income Statement (€mn) 2016A 2017A 2018E 2019E

Net Revenues 21.1 26.4 30.2 33.6Other Revenues 0.6 0.9 1.1 1.2Value of Production 21.6 27.3 31.3 34.8COGS & SG&A -12.4 -16.7 -19.7 -21.9Labour cost(*) -6.8 -7.7 -7.9 -8.3EBITDA 2.4 2.9 3.7 4.5D&A -1.2 -1.6 -2.0 -2.0EBIT 1.2 1.3 1.7 2.5Net financial charges -0.1 -0.1 0.0 0.1Pre-Tax Profit 1.1 1.2 1.7 2.6Non-Operating Items 0.0 0.0 0.0 0.0Extraordinary Items 0.0 0.0 0.0 0.0Taxes -0.3 -0.6 -0.6 -0.9Minorities 0.0 0.0 0.0 0.0Net Profit 0.8 0.6 1.1 1.7Adj. Net Profit 0.8 0.6 1.1 1.7

Balance Sheet (€mn) 2016A 2017A 2018E 2019E

Net Fixed assets 15.1 15.0 16.6 17.6Net Working Capital -7.9 -7.1 -8.3 -9.0Severance pay and other funds 1.1 1.2 1.3 1.4

Total Capital Employed 6.1 6.7 7.0 7.2

o/w Group Net Equity 7.0 13.9 15.0 16.8Net Fin. Position 1.0 7.3 8.0 9.6

MailUp Group:

Summary of

financials

Source for future financial results estimates: Value Track equity research reports (without M&A effects).

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KEY FIGURES & RATIOS 2016A 2017A 2018E 2019E

EBITDA Margin (% of Net Revenues) 11% 11% 12% 14%

EBIT Margin (% of Net Revenues) 6% 5% 5% 8%

Net Margin 4% 2% 4% 5%

ROE 11% 4% 7% 10%

ROCE b.t. 20% 19% 24% 37%

Net Debt / Equity nm nm nm nm

Net Debt / EBITDA (x) nm nm nm nm

OpFCF b.t. as % of EBITDA 42% 86% 75% 66%

P/E (x) 34.4 49.4 30.8 19.3

P/BV (x) 3.9 2.4 2.3 2.0

EV/Sales (x) 1.2 1.0 0.8 0.7

EV/EBITDA (x) 10.7 9.1 7.0 5.2

Revenue YoY growth nm 26% 14% 11%

EBITDA YoY growth nm 19% 27% 27%

Net Profit YoY growth nm -22% 78% 60%

COMPANY DATAOutstanding Shares (mn) 14.2

Market Price (€) 2.37

Fair Price (€) 3.45

Market Cap (€mn) 33.631

Cash Flow Statement (€mn) 2016A 2017A 2018E 2019E

EBITDA 2.4 2.9 3.7 4.6

Op. WC requirements 0.2 1.3 1.2 0.7

Capex (not incl. Fin. Inv.) -1.8 -2.0 -2.2 -2.4

Change in provisions 0.2 0.3 0.1 0.1

OpFCF b.t. 1.0 2.5 2.7 3.0

As a % of EBITDA 42% 86% 75% 66%

Cash Taxes -1.0 -0.5 -0.6 -0.9

OpFCF a.t. 0.0 2.0 2.1 2.1

As a % of EBITDA 1% 69% 58% 46%

Capital Injections 0.0 5.9 0.0 0.0

Other (incl. Fin. Inv.) 0.0 -1.5 -1.4 -0.6

CF available to serve debt/equ. 0.0 6.4 0.7 1.5

Net Financial Charges -0.1 -0.1 0.1 0.1

Dividend paid 0.00 0.00 0.00 0.00

Change in Net Fin Position -0.1 6.3 0.8 1.632

KEY PEOPLE & SHAREHOLDERS’ STRUCTURE

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MatteoMonfrediniPresident&CFO

NazzarenoGorniCo-founder,CEO

MicaelaCristinaCapelliIndependentDirector

ArmandoBiondiIndependentDirector

ü ProgramminganalystatAlessandroGuarneri’sAllMat Softü SystemengineersatNetworkS.n.c.,MonfrediniMatteo&C.

ü ICTMarketingandCRMConsultancyü AdjunctprofessorinMarketing,Consumerism&CommunicationatIULMUniversityü Co-authorofsomebooks

ü AnalystattheEquityMarket ListingoftheItalianStockExchangeü CapitalMarketsManagerofCentrobanca andUBIBancaü CapitalMarketsDirectorofBancaEsperia

ü Co-founderofAdEspresso,ü OneoftheEuropeanTopAngels(withnearly50investments)ü GuestContributorforVentureBeat,BusinessInsider,Entrepreneur.com

andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%

AlbertoDomenicoMiscia11.7%

NazzarenoGorni11.7%MatteoMonfredini

11.6%

ZoidbergSrl7.7%

GiandomencioSica0.7%

FreeFloat33.4%

Matteo MonfrediniPresident & CFO

Nazzareno GorniCo-founder & CEO

Micaela Cristina CapelliIndependent Director

Armando BiondiIndependent Director









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%









andFastCompany.

LucaAzzali11.7%

MatteoBettoni11.5%



11.6%

ZoidbergSrl7.7%


FreeFloat33.4%

• Programming analyst at Alessandro Guarneri's AllMat Soft• System engineers at Network S.n.c., Monfredini Matteo & C.

• ICT Marketing and CRM Consultancy• Adjunct professor in Marketing, Consumerism &

Communications• Author of some books about Email Marketing

• Analyst at the Equity Market Listing of the Italian StockExchange

• Capital Markets Manager of Centrobanca and UBI Banca• Capital Markets Director of Banca Esperia

• Co-founder of AdEspresso• One of the European Top Angels (with nearly 50

investments)• Guest Contributor for VentureBeat, Business Insider,

Entrepreneur and Fast Company.

• Founder and Chief Executive Officer of HAT Orizzonte Group • Former Head of Private Equity of Vegagest SGR

Ignazio CastiglioniIndependent Director

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Free float 34.1%

Nazzareno Gorni11.7%

Matteo Bettoni11.5%

Alberto Miscia11.7%

Luca Azzali11.7%

Matteo Monfredini11.6%

Zoidberg Srl7.7%

STOCK PERFORMANCE AND VALUATION RELATIVE TO COMPARABLES

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Based on the dataset created by Prof. AswathDamodaran (Stern School of Business, New York University), MailUp Group is trading at a huge discount vs. its European peers in the sector "Software (System & Application)." The dataset includes 222 European public tech companies in the sector "Software (System & Application)," many of them listed on secondary markets like AIM Italia, AIM UK, Euronext Growth, Nasdaq First North, NewConnect Poland, MaB Madrid

MailUp Group share price, 18 April 2017 to 18 April 2018

Based on 2018E-19E estimates provided by Value Track, MailUpGroup trades at a wide discount vs. selected international peers, ranging from 27% to 78% depending on the multiple taken into consideration

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MailUp Group Stock Performance

39Source: Italian Stock Exchange for stock price evolution and analysts’ estimates (Value Track and market consensus) for stock market multiples

MailUp Group Stock Market Multiples relative to Comparables

CompanyEV / Sales (x) EV / EBITDA (x)

2018E 2019E 2018E 2019E

Hubspot 8.2 6.6 n.m. n.m.

Dotdigital 5.4 4.0 18.5 14.1

Salesforce 6.6 5.4 29.1 22.5

Sharpspring 3.0 2.6 n.m. n.m.

Link Mobility 1.0 0.8 8.6 5.9

Twilio 6.8 5.6 n.m. n.m.

Sendgrid 9.6 7.6 n.m. n.m.

Median 6.6 5.4 18.5 14.1

Average 5.8 4.7 18.7 14.2

MailUp 0.7 0.6 6.1 4.4

MailUp vs. Median -89% -87% -67% -69%

MailUp vs. Avg. -87% -87% -67% -69%

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FURTHER INFORMATION

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STOCK DETAILS

ListingMilan, Italian AIM

Outstanding number of shares 14.2 mn

ISIN ordinary shares IT0005040354

Market CapApprox. €33 mn

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FINANCIAL CALENDAR

Tuesday, 27 March 2018 Thursday, 26 April 2018 Thursday, 27 September 2018

Board approving the draft financial statement 2017

Shareholders’ Meeting approving the financial statements 2017

Board approving the six-month financial statements 2018

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CONTACTS

AddressViale Francesco Restelli, 20124Milan, Italy

Phone+39 02 71040485

[email protected]

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