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Q Results & Strategic Outlook Agenda DADA in a snapshot Q Business Overview Q Financials 2 Key Highlights The one-stop shop for your online presence Targeted to SMBs, professionals and
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Q Results & Strategic Outlook Agenda DADA in a snapshot Q Business Overview Q Financials 2 Key Highlights The one-stop shop for your online presence Targeted to SMBs, professionals and high-end customers Pan-European presence in 7 countries with a high potential of scalability thanks to unified platforms Large customer base (520k paying clients for 1.7 mn registered domains) upon which DADA can up-sell additional services Ongoing focus on retaining the existing customer base and acquiring new customers Increasing competition in most geographies, entry of major global players and lower demand for new registrations 3 * Key Financials Q vs Q mn Q Q YoY Revenue ,1% EBITDA % Ebitda margin % 18% 14% EBIT % Profit (loss) from discontinued operations n.m. Net Profit n.m. NFP Headcount ** * Performance Adv (MOQU) results classified as Profit (Loss) from discontinued operationsfor both 2015 and 2014 **Including 25 employees from MOQU excluded from the figures at 31 March 2015 as a result of the disposal on 16 March Agenda DADA in a snapshot Q Business Overview Q Financials 5 Online solutions are increasingly key for SMEs PRICE N. Of CUSTOMERS Business Overview Product Offering CUSTOMER NEEDS DADA S SUITE OF SERVICES One-Stop-Shop to: - Create online presence - Market and promote businesses - Sell and distribute products online Product quality, ease-touse: Online Adv, OBP & Security Products Dedicated & Cloud Solutions Dedicated &Virtual Servers Private & Public Cloud Solutions Web Apps Website creator E-commerce Shared Hosting - Simple way to find, purchase and use the right service Communication / PEC / Office 365 Domain names 6 Step 1 Get a domain name to start online presence Step 2 Build a web presence Business Overview What we offer Step 3 Increase your visibility and sell online S Key Products: Domain name registrations Domain renewals and transfers newgtlds pre-registration TMCH and DPML Key Products: Website builder Shared Hosting ( ) Dedicated and virtual servers Turnkey products Key Products: Search Engine Optimization Online marketing solutions E-Commerce solutions 7 Business Overview supported by continued outstanding customer care 8 The new UK DataCentre site is a 50,000 square foot facility located near to the Green Park technology area: Cutting-edge specifications (TIER 4 like) Industry leading SLAs 24/7 Support Business Overview and to the new IT Infrastructure Reading London Paris Strasbourg Milan Shared Hosting/ Network/ Other services Dedicated Virtual Servers All 9 Renewals of existing clients represents over two thirds of new sales on average Business Overview Revenue model and key drivers Of which about 90% is from advance payment by credit card 2015 DRIVERS Year 1 Renewals/ Recurring Revenue Upselling on existing customers New Customers Year 2 Customer base consolidation is key for driving long-term growth and extracting future value Strategic priority on: reducing Churn upselling to Current Customers acquiring New Customers Working closely on RETENTION and on NEW ACQUISITIONS 10 Domain Markets in Europe Business Overview Main Market trends of Q Q15 confirmed the slow down trend in the Domain & Hosting business in the main European markets, affecting number of new customers Competitors General increase in cost of acquisition driven by aggressive marketing policies by large competitors and consequently risk of commoditization *Source: Management analysis based on available market data 11 Business Overview Key pillars of Strategy Market Scenario Increased competition pressure Strategy Price reposition and local strategy Main Goal Success objectives New Competitors New large global players entering our markets (GoDaddy, Google) Cost of acquisition Competition leveraging on web acquisition channels and raising online cost of acquisition Price War Aggressive marketing campaigns more and more driven by low cost offers Revise our price positioning by developing modular offer of services Increase product range quality and introduce additional value to core products Engage customers by introducing We do it for you products Support customers extending customer services availability and contact channels Hold renewals/ Reduce churn rates Grow active customers 12 Domains & Hosting 2015 Strategic Priorities Objective Deliverable Impact 1 Reduce Churn Platform performance Value add products Enhanced user interface Improved renewal rates Lower customer attrition 2 Upsell to Base Develop offline sales channel Introduce new products Enhanced user interface Offline sales improved New/enhanced products Improved ARPU 3 Platform integration Network infrastructure Platform consolidation Team integration Savings delivered Operational efficiency Speed to market 4 New cust channels New local and social products Co-brand marketing New market entrance Growth in new customers Operating in Indian and South American market Acquiring without domain lead 13 Agenda DADA in a snapshot Q Business Overview Q Financials 14 3Y Stock Performance Financials Corporate Profile Shareholding Structure Current management team in charge Free Float 25.4% Set, 2011 Jul, 2012 Gen, 2013 Jul, 2013 Gen, 2014 Jul, 2014 Gen, 2015 Share Information Ticker Market cap (FTSE STAR Segment) Shares issued Last 3 Month avg. daily trade DA IM (Bloomberg), DA.MI (Reuters) mn Oyster Sicav 5.1% Orascom TMT Investments* 69.4% * Through its wholly-owned subsidiary Libero Acquisition S.à r.l. 15 Financials Q Profit & Loss mn Q % on sales Q % on sales Q/Q % Net Revenues % EBITDA % % 25% EBIT 1.1 7% 0.5 3% 104% Profit before Tax 0.6 4% % n.m. Group Net Profit 0.01 n.m n.m. 102% 16 Financials Q Revenue Breakdown by Country Domains Under Management UK AREA EU AREA Customer Base Over 75% of D&H Q Revenue = mn (100%) 17 Financials Q Key Revenues components mn % = Delta vs % -0.2% -0.2% +0.3% (*) Not business related effects: /GBP Exchange Rate 2014 UK Adsl Revenue (Dismissed in May14) mn mn 18 Financials Q Key EBITDA components mn GM +0.5 COA (0.4) Labour Cost +0.6 G&A, Corporate Costs (0.1) % of Revenue Q Q % 18% 19 2.8 Financials Q From EBITDA to Net Profit mn Q EBITDA (1.6) D&A (0.1) 1.1 Non recurring charges/write downs EBIT (0.4) Net Financials (0.3) Taxes 0.01 Net Profit 2.3 (1.7) Q EBITDA D&A (0.05) 0.5 Non recurring charges/write downs EBIT (0.7) Net Financials (0.3) Taxes (0.5) Net Loss 20 Financials Q Capex Composition mn mn Financials Q Cash Flow Composition 4.2 (1.5) (0.7) 5.0 (0.2) (0.1) (33.6) (26.9) * Of which mn related to CC commissions 22 Financials Q Balance Sheet mn Net Working Capital (11.4)* (10.3) Fixed Assets Severance and Other Funds (1.2) (1.4) Other Payables beyond one year (22) (17) Net Capital Employed Net Financial Position (26.7) (33.6) Total Shareholders Equity (57.6) (50.1) Differences between NCE and the sum of NFP and Net Equity area due to rounding * Of which 13mn deferred revenues included 23 Financials Q NPF Breakdown mn Q Q Liquid and credit by back account Credit lines, account overdrafts and current bank borrowing (12.1) (18.2) Non-current bank borrowing (M/L T) (22.2) (16.7) Derivatives (0.1) (0.1) NPF (26.9) (33.6) 24 Appendix Group Corporate Structure as of April Q Dada Group Consolidated P&L /mn ACT 2015 ACT 2014 Delta vs 2014 Revenue 16,0 16,0 0,0 0,1% COGS -5,7-6,2 0,5 Product Margin 10,3 9,8 0,5 5,3% COA -1,7-1,2-0,4 Gross Margin 8,7 8,6 0,1 0,9% Labour Cost & Contractors -4,7-5,3 0,6 R&D CAPEX 0,6 0,8-0,2 G&A -1,8-1,9 0,1 EBITDA 2,8 2,3 0,6 25,0% Receivables write-downs -0,1-0,1-0,1 Non recurring charges 0,0 0,0 0,0 D&A -1,7-1,7 0,0 EBIT 1,1 0,5 0,5 103,9% Net Financials -0,4-0,8 0,4 Taxes -0,3-0,2-0,1 Profit (Loss) from Continuing Operations 0,3-0,5 0,8 n.m. Profit (Loss) from discontinued operations -0,3-0,1-0,3 Net Result 0,0-0,5 0,5 n.m. * 2015 Positive Result for 11k 27 M&A activity in Domains & Hosting July 2006 Last 3% acquisition August % acquisition July % acquisition July % acquisition May % acquisition January % acquisition Over time DADA has proved that it can grow also by external growth 28 M&A history 29 Domain & Hosting Market Overview The fourth quarter of showed 288 million domain name registrations worldwide, a growth of 6.2% yoy: the.com and.net TLDs reached a combined total of mn names (+2.7% yoy) At the end of the fourth quarter of 2014, 478 new gtlds were delegated into the root. New gtld registrations totaled 3.6 million (+2.3% of total gtld registrations) the base of cctlds was 134 mn names (+8.7% yoy) for more than 285 extensions globally CCTLDS/NEWGTLDS DOMAINS PENETRATION New Gtlds registration totaled 3,6 mln, on 2,3% on total gtlds registrations 1 The Domain Name Industry Brief, Verisign, March Zooknic, local registries 30 Domains & Hosting Key pillars of Future Strategy figure from FY2014 Presentation STRENGTHENING CUSTOMERS BASE FOCUSING ON THE BUSINESS SEGMENT OF SMEs 1. Strengthening and Social collaboration tools, Hosting and related value-added products 2. Expanding the offer of virtual and dedicated servers, also in fully managed mode 3. Improving on- and off-line customer service, for customer delight and further increasing retention and ARPU rates WHILE DRIVING PROFITABILITY IMPROVEMENT 1. Integrating technology platforms 2. Capitalize the rationalization of the Data Centers structure started in Ensuring tight operating cost control to increase overall efficiency TOPLINE: Mid-single digit CAGR* (with a higher rate from the second part of the period) PROFITABILITY: More than proportional increase vs Rev growth * On a like-for-like basis and net of the negative contribution of Simply 31 FY 2014 Results Cash Flow Statement mn Q Q Cash and Cash Equivalents at the Beginning of Period (16.8) (9.5) Group Net Profit (Loss) Gross Operating Cash Flow Working capital, Income taxes and Interest paid (0.5) (0.5) Net Operating Cash Flow Capex & Investing Activities 3.4 (1.9) Financing Activities Free Cash Flow Cash and Cash Equivalents at the End of Period (4.6) (8.9) 32 Many thanks! All forecasts included in this document are subject to risks and uncertainties of DADA itself and of Internet, media and Telco markets. All forecasts are based on currently available information and reflect DADA Group management expectations. All forecasts reflect market parameters, assumptions and other fundamentals which could change and therefore influence the future results. All the forecasts are based on an hypothesis of organic growth and commercial and regulatory stability, particularly in the mobile market. This document does not constitute solicitation of public saving. Contacts Investor Relations DADA Tel:
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