Post on 14-Feb-2017
transcript
Mollie Spilman, Chief Revenue Officer
Investor Day, September 2016
APAC Growth
2 | Copyright © 2016 Criteo
Safe Harbor Statement
This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information
currently available to management. Forward-looking statements include information concerning our possible or assumed future results of
operations, business strategies, financing plans, projections, competitive position, industry environment, potential growth opportunities,
potential market opportunities and the effects of competition.
Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,”
“believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar
expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and
assumptions only as of the date of this presentation. You should read the Company’s most recent Annual Report as filed on Form 10-K, on
February 29, 2016, including the Risk Factors set forth therein and the exhibits thereto, completely and with the understanding that our
actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these
forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-
looking statements, even if new information becomes available in the future.
This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a
reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides to today’s
“Financial Update” presentation. In addition, certain financial information contained herein with respect to years ended prior to December 31,
2013 has been derived from our audited consolidated financial statements that were prepared in accordance with IFRS and presented in
Euros. Financial information contained herein with respect to quarterly periods has been derived from our unaudited condensed
consolidated financial statements.
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2014 2015 2016 2017 2018
China* Japan Rest of APAC* RoW
Asia is the world’s largest ecommerce region
Source: eMarketer, *excludes HongKong
Retail eCommerce Sales
>60% of Global
Ecommerce
by 2018
~50% Smartphone User
Penetration
by 2018
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Tokyo 2011
Singapore 2013
Shanghai 2016
Beijing 2013
Seoul 2010
Sydney 2011
Osaka 2014New Delhi
2016
We have a strong position in Asia-Pacific
24%of Global
Revenue
ex-TAC*
* In Q2 2016
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• 66% of APAC business
• Clear leader in remarketing
• Mature yet strong growing market
• Exclusive partnership with Yahoo! Japan
• No significant competitor
• Strong team in place
• Offices in Tokyo and Osaka
• Strong midmarket opportunity
Japan: Our “Bread and Butter” Business
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We have a proven blueprint to open new markets
Activate RTB
networks
Upsell large
clients into
new
geographies
Sign local
clients
Sign local
premium
publishers
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Our priorities for Tier 1 in Asia-Pacific for 2016/17
Southeast
AsiaChinaIndia
Mobile First Markets
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Mobile is the growth driver in APAC
Source: eMarketer, April 2016, individuals who own at least one smartphone and use it at least once per month.
CAGR
2014-2020
1 China 8%
2 India 21%
3 USA 6%
4 Indonesia 14%
5 Brazil 14%
7 Japan 6%
16 Philippines 11%
17 Vietnam 15%
18 Thailand 10%
22 Taiwan 4%
Worldwide 11%
Faster
2014-2020 CAGRthan worldwide
growth of
smartphone
users
3 out of 5 top 25 markets ranked by smartphone users are in APAC
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2109 2020China India USA Indonesia Brazil
Japan Philippines Vietnam Thailand Taiwan
Smartphone users (M)
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Our priorities for Tier 1 in Asia-Pacific for 2016/17
Southeast
AsiaChinaIndia
Mobile First Markets
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Southeast Asia: Why we are bullish about growth opportunities
3 471
2 792
2 024
6 042
10 907
55 975
22 128
Indonesia
Philippines
Vietnam
Thailand
Malaysia
Singapore
Taiwan
GDP in $/Capita 2015Population: ~600M
Below 30: ~45%
Internet Users: ~45%
2019 Smartphone Users: ~230M
2016 Smartphone Users: ~160M
Source: Euromonitor, BofA Merril Lynch's eCommerce Report as of May 2015 and SingPost Report as of Jan 2015
eCommerce: only 1-2% of total retail
11 | Copyright © 2016 Criteo
Customer Success Story
““Criteo’s performance marketing solution drives actual, measurable results, which we appreciate the most. Criteo is a key component in our overall marketing approach.”
Timothy Martin
Head of Online Marketing
+160%in month on
month sales
10xin advertising
ROI
““Criteo’s performance marketing solution drives actual, measurable results, which we appreciate the most. Criteo is a key component in our overall marketing approach.”
Timothy Martin
Head of Online Marketing
+160%in month on
month sales
10xin advertising
ROI
12 | Copyright © 2016 Criteo
We plan to accelerate Tier-1 growth in Southeast Asia
Continue to
grow our key markets
(Indonesia, Taiwan, Vietnam)
Continue to launch more
app advertising campaigns
for existing and new clients
Build in-app inventory
and expand relationships with
local publishers and platforms
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Our priorities for Tier 1 in Asia-Pacific for 2016/17
Southeast
AsiaChinaIndia
Mobile First Markets
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India: an exciting market
• World’s 2nd largest Internet
population (28% penetration)
• Amazon investments: $2bn in
2014, $3bn in 2016*
• Ecommerce >$100bn before 2020
• Strong local brands (e.g. Flipkart,
Myntra, Snapdeal, Makemytrip)
• Strong presence of Google and
Facebook: consumer reach
• Open to foreign companies
* The Wall Street Journal
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Our game plan for India: Continue on our proven blueprint in 2016/17
Activated large RTB networks
Started to
upsell large
clients into
India from
Singapore
Started
building a
strong team
Opened a
subsidiary in
Gurgaon/
New Delhi
Accelerate
signing of
local clients
Sign local
premium
publishers
incl. in-app
Aggressively launch app campaigns
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Our priorities for Tier 1 in Asia-Pacific for 2016/17
Southeast
AsiaChinaIndia
Mobile First Markets
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China is a specific market
Opportunities 机会
• Huge domestic market
• Established ecommerce
• 25,000 midmarket advertisers
• Appetite for performance
• Local competition less tech
oriented
• Mobile/app-first market
Challenges 挑战
• Limited access to local inventory
• Hosting infrastructure needs to be in
Mainland China
• No Western tech/ecommerce
players
• Market new to remarketing/longer
sales cycles
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We already established a solid foundation in China
Opened offices (Beijing, Shanghai) and strengthened the team with new MD
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
China Export Business Revenue ex-TAC +343%
yoy
Activated 10 largest RTB platforms
Launched sizeable export business leveraging our global reach
Opened data center in mainland China
Started domestic campaigns
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We have a clear set of priorities for China for 2016/17
Export
Business
MidmarketLocal Tier-1
business
Apps
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Conclusion
Midterm, Asia Pacific continues
to be our largest growth opportunity
The World’s
Performance
Marketing Platform