Академический Документы
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AUGUST 2012
Disclaimer
This presentation does not constitute an offer to buy, sell or issue, or a solicitation of an offer to purchase or subscribe for, any security or instrument of Acquity Group Limited (the Company) in any jurisdiction or an inducement to enter into any investment activity or trading strategy, nor m ay it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision whatsoever. Specifically, this presentation does not cons titute a prospectus within the meaning of the U.S. Securities Act of 1933, as amended (the Securities Act). This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. No securities of the Company may be offered or sold in the United States without registration with the United States Securities and Exchange Commission (the SEC) or an exemption from such registration pursuant to the Securities Act and the regulations promulgated thereunder. Any public offering of the Company's securities to be made in the United States will be made pursuant to an effective registration statement and prospectus as specified under the Securities Act. Such prospectus will contain detailed information about the Company and its management as well as the financial statements of the Company. Any decision to purchase the Company's securities in an offering in the United States or anywhere else should be made solely on the basis of the information contained in the prospectus. The prospectus can be obtained free of charge from the SEC's website at www.sec.gov. The information contained in this presentation has been prepared by the Company solely for informational purposes and has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. No part of this transaction shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. None of the Company or any of its affiliates, shareholders, directors, employees, agents, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation contains forward-looking statements that reflect the Companys intent, beliefs or current expectations about t he future. These statements can be recognized by the use of words such as expects, plans, will, estimates, projects, intends, or words of similar me aning. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. In addition, they are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those expressed by the forward-looking statements as a result of various factors, many of which are beyond the Companys control. None of the Company or any of its affiliates, advisors or representatives has an obligation or undertakes to revise forward-looking statements to reflect future events or circumstances. THE INFORMATION CONTAINED IN THIS DOCUMENT IS HIGHLY CONFIDENTIAL AND MAY NOT BE FORWARDED, PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON (WHETHER WITHIN OR OUTSIDE YOUR ORGANIZATION/FIRM) FOR ANY PURPOSE AND MAY NOT BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, PUBLICATION, DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT IN WHOLE OR IN PART IS UNAUTHORIZED. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other person for any purpose, during the presentation or while in the conference room. Participants must return this presentation and all other materials provided in connection herewith to the Company at the completion of the presentation.
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We are the Leading Provider of Brand eCommerceTM and Digital Marketing Solutions
11 years operating experience Over 600 global brands 569 employees year-to-date Year-to-date revenue of $70 million 1H 2012 over 1H 2011 revenue growth 51% 1H 2012 adjusted EBITDA margin 23%
DIGITAL STRATEGY
DIGITAL MARKETING
eCOMMERCE TECHNOLOGY
Page 3
PAST
TODAY
eCOMMERCE
ONLINE CATALOG
OMNI-CHANNEL
AUDIENCE
PERSONALIZED
FOCUS
WEBMASTER
CEO / BOARD
SPEND
DISCRETIONARY
FUNDAMENTAL
Page 4
46%
Source: Forrester Research. U.S. Online Retail Forecast, 2011 to 2016, February 27, 2012 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL
$3.5
BILLION
$31
BILLION
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The Solution
Brand eCommerceTM
BRAND eCOMMERCE IS THE SEAMLESS BLEND OF BRAND STRATEGY, DIGITAL MARKETING AND eCOMMERCE
EXPERIENCES THAT TELL A STORY, CREATE BRAND AWARENESS & AFFINITY AND ULTIMATELY DRIVE TRANSACTIONS
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GRAINGER.COM PROMOTIONS
USER EXPERIENCE
MOBILE
ONLINE ADVERTISING
In response to todays digital environment, Grainger improved its online experience for customers and embraced a multichannel approach to enable customers to interact with the company.
2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 7
REVENUES ($MM)
100.1% (2)
(2)
$21.3
2009
2010
2011
2009
2010
2011
Year-on-Year Growth
Year-on-Year Growth
(1) Adjusted EBITDA, a non-IFRS measure, is defined as net income (loss), plus interest expense, income taxes, depreciation and amortization, impairment losses, non-recurring expenses and acquisition-related costs. Refer to the Reconciliation of Non-IFRS Measures to IFRS Measures in the Appendix. (2) See footnote (5) to the Reconciliation of Non-IFRS Measures to IFRS Measures in the Appendix. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 8
1 2 3 4
Massive Global Opportunity The Market Leader in Brand eCommerceTM Deep Relationships with Recognized Brands Experienced Management Team and Focused Growth Strategy
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$12.7
TRILLION
11-14 CAGR: 4.9%
1 2 3 4
$1.3
TRILLION
11-14 CAGR: 13.5% 11-14 CAGR: 13.5%
$1.6
TRILLION
11-14 CAGR: 14.5%
All figures are based on 2014 forecast. Source: Datamonitor; IDC. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 10
THE NEW GM - LEANER, SMARTER MOBILEFASTER, TRAFFIC IN JUNE WAS 1.3M OF THE OVERALL 6.2M VISITS FOR CHEVY
DESKTOP IS 70% OF OVERALL TRAFFIC - MOBILE AND TABLET ARE 30% CHEVY, CADILLAC, BUICK, GMAC, GM.COM - NEW LAUNCHES
1
MOBILE GLOBAL AUDIENCE TABLET
2 3 4
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1 2 3 4
Documents/ Content Events
Micromedia
BRAND
Lifestreams
Video
Information
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1 2 3 4
Manufacturing
B2B
Best in Class: eCommerce Forrester 2012 Design Overview Report: Top Interactive Design Agency Best in Class: Banking
1 2 3 4
TECHNOLOGY PLATFORMS
CUSTOMIZATION
LOW
MEDIUM
HIGH
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OVER 25% OF TOP 50 ECOMMERCE COMPANIES ARE OUR CLIENTS OUR TOP 20 CLIENTS GENERATED $30BN IN ECOMMERCE REVENUES IN 2011
1 2 3 4
Source: ComScore; Internet Retailer. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 15
THE NEW DISCOVER iPAD APP WAS THE #1 FINANCE CATEGORY DOWNLOAD INSIDE ITS FIRST WEEK, EARNING 4.5/5 STARS HIGHLIGHTED AS APPLE STAFF FAVORITE - ONLY 24 APPS SELECTED
MOBILE
1 2 3 4
TABLET
Discover iPad app won Best in Class Award under the Banking Category
Discover Mobile (m.discover.com) enhanced with improved navigation and intuitive design, improved account summary interface includes functionality to: View transactions Make payments Enroll in & redeem rewards programs
2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 16
OUR CLIENT ENGAGEMENTS ARE ESCALATING IN SIZE TO YIELD HIGHER WALLET SHARE
1
77% 81% $1.7 $1.4 $3.0 $1.0 $1.8
2 3 4
$4.6
67%
2009
2010
2011
2009
2010
2011
Deep Relationships with Recognized Brands / Why Clients Choose Acquity Group
FOCUSED APPROACH
EXPERIENCE
1 2 3 4
11 years focus on
eCommerce Integration of
Strategy, Marketing, and Technology
Award Winning
Industry
Leader
Professionals
Collaborative Sales approach
Specialist at driving
Source: ComScore; Internet Retailer. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 18
GEORGE LU
Executive Chairman and Group Chief Executive
ADRIAN CHAN
Director and Company Secretary
1 2 3 4
JAY DETTLING
EVP of Services
CHRISTOPHER DALTON
Co-founder, President and CEO
PAUL WEINEWUTH
Co-founder, CFO
RAYMOND GRADY
Executive Vice President and Global Head of Sales
MATTHEW SCHMELTZ
Co-founder, EVP of Marketing
JAMES NEWMAN
EVP of Operations
ANDREW PEEBLER
EVP of Sales
ENTREPRENUERIAL SPIRIT
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1 2 3 4
EXPAND CORE SERVICES Expand existing customer relationships Acquire new clients Expand nonlinear service offerings: Hosted solutions through Commerce OnDemand Analytics capabilities GEOGRAPHIC EXPANSION Continue to expand key offices in new geographies in North America:
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FINANCIAL OVERVIEW
1 2
Revenue growth of 51% (1H 2012 over 1H 2011) Growth in customers and wallet share
Organic revenue CAGR of 46% since inception Proven demand generation drives visibility
3
4
Strong Profitability
1H 2012 Adjusted EBITDA margin: 22.6% (1) 1H 2011 Adjusted EBITDA margin: 17.5% (1)
(1) Refer to the Reconciliation of Non-IFRS Measures to IFRS Measures in the Appendix. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 22
Financial Performance
REVENUE ($MM)
$106.7
$86.6
$72.6 $51.1
$56.3 $34.4
2009
2010
2011
2009
# OF CLIENTS >$500K % REVS >$500K 33
2010
39
2011
50
67%
77%
81%
Source: Company Filings. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 23
TOP 10 CLIENTS REPRESENTED 40% OF OUR REVENUE IN 1H 2012 COMPARED TO 47% IN 1H 2011 TOTAL REVENUE GENERATED BY TOP 10 IN 1H 2012 GREW 28% COMPARED TO TOP 10 OF 1H 2011 ALL BUT ONE OF OUR CLIENTS WHICH MADE UP THE TOP 10 IN 2009, WERE CLIENTS IN 1H 2012
2011 2010
2009
TOP 10 CLIENT REVENUE $18.4MM TOP 10 CLIENT REVENUE $29.5MM
Source: ComScore; Internet Retailer. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 24
Operating Metrics
TOTAL PERSONNEL
139
99
430
357 257
2010
2011
1H 2011 1H 2012
2010
Billable
2011
Non-Billable
1H 2012
Increase in utilization driven by increased demand for our services Optimal utilization level is 78% - 82%
Source: Company Filings. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL
Continued growth in headcount in 2012 to support increase in demand Expect to continue increasing headcount to fulfill increasing demand
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Financial Performance
SG&A (% of Revenue)
$46.1 43.2% $31.4 43.2% 41.7% 45.6% $31.9 28.6% 23.6% 23.1% 14.7% $10.6 16.8% $8.1 $21.3 19.9% 17.5% $15.8 22.6%
9.3%
7.3% 2011
6.3% 1H 2012
2010
2011
1H 2011 1H 2012
2010
2010
2011
1H 2011 1H 2012
Source: Company Filings. (1) Refer to the Reconciliation of Non-IFRS Measures to IFRS Measures in the Appendix. 2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 26
Financial Goals
Revenue Growth
~40% year-over-year revenue growth
Profitability
Leverage scale to drive operating efficiency and margin expansion
~20% adjusted EBITDA margin >10% net margin
Financial flexibility
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1 2 3 4
Massive Global Opportunity The Market Leader in Brand eCommerceTM Deep Relationships with Recognized Brands Experienced Management Team and Focused Growth Strategy
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APPENDIX
(amount in thousands of US $) Revenues Calculation of adjusted EBITDA: Profit (loss) attributable to equity holders, as reported Interest expense, net of interest income Income tax expense Depreciation & amortization: Property and equipment Intangible assets Other expenses and costs (1) Adjusted EBITDA, as reported Equity in losses of joint ventures (2) Non-controlling interest associated with joint ventures Adjusted EBITDA (Revised) (4) as a % of Revenues Calculation of adjusted administrative expense: Administrative Expenses, as reported Depreciation & amortization: Property and equipment Intangible assets Other expenses and costs (1) Adjusted administrative expenses as a % of Revenues
$8,335 (25) 6,472 1,469 2,500 1,208 $19,959 1,037 272 $21,268 19.9%
(3)
Source: Company Filings. (1) Includes advisory fees paid in connection with the issuance of the convertible bonds and acquisition of Acquity Group LLC, non-cash expenses in connection with the cancellation of incentive units, management fees paid to Equity Partners, professional fees related to an aborted financing transaction and the initial public offering related fees. (2) During fiscal 2011, we entered into an agreement related to a 33.0% interest in our joint venture, Huaren Kudong Commercial Trading Co., LTD. Additionally, we entered into an agreement related to a 19.9% interest in our joint venture, Digital Li-Ning. The investments for these joint ventures is accounted for as an associate of the Company using the equity method in accordance with IAS 28. As a result, we recorded a non-cash loss related to the results of operations for each entity. (3) For fiscal year 2011, we recorded a non-cash benefit for non-controlling interest related to a minority position in a subsidiary related to our joint venture, Huaren Kudong Commercial Trading Co, LTD. (4) Subsequent to the filing of our prospectus and after further review, we revised our adjusted EBITDA calculation for certain non-cash charges associated with our joint ventures and noncontrolling interest as mentioned in footnote 2 and footnote 3, respectively. (5) Prior versions of investor presentations utilized adjusted EBITDA as reported in our prospectus; however, this presentation and those going forward will utilize adjusted EBITDA as revised above.
2012 Acquity Group, LTD. All Rights Reserved. | CONFIDENTIAL Page 30
For more Information, visit: www.acquitygroup.com CHICAGO, IL (Headquarters) 500 West Madison Street, Suite 2200, Chicago, IL 60661 // 312.427.2470
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