German Equity ForumFyber N.V.
28 November 2017
POWERING DIGITALADVERTISING
Tel Aviv | New York | San FranciscoLondon | Berlin | Beijing
6 Offices
THE FYBER GROUP
300+ Employees
40%of employees in R&D & Product
€240MProjected revenue in 2017
Publicly TradedFBEN Frankfurt
140BERLIN
80TEL AVIV
15BEIJING
15LONDON
25NEW YORK
45SAN FRANCISCO
€129m
€218m€240m
2015 2016 2017E
2
Gross Revenue
FYBER DEVELOPS A NEXT GENERATION, MOBILE-FIRST PROGRAMMATIC MONETIZATION PLATFORM
AdvertisersPublishers
FOCUSED ON ADDRESSING PUBLISHERS’ NEEDS…
…OFFERING SUBSTANTIAL VALUE TO OUR DEMAND PARTNERS
…THROUGH PROPRIETARY, INNOVATIVE TECHNOLOGY…
3
Making global audience of over
1.2bn users buyable for advertisers
Comprehensive proprietary software,
designed with the publishers’ needs in mind
Making fragmented advertising market
accessible to publishers, yield optimization
3
MARKET OPPORTUNITY01
4
Source: eMarketer, 2017; growth rates calculated as CAGR for 2015-2020 and 2015-2019 respectively 5
AD SPEND HAS BEEN STRONGLY SHIFTING TO MOBILE AND IN-APP
Worldwide Digital Ad Spend ($bn)
44%
76%
56%
24%
2015 2020Mobile Desktop
191 360
+28%
-2%
US User Time Spent on Mobile (%)
3hrs+ / day
VIDEO IS THE FASTEST GROWING AD FORMAT, ALSO POWERING PROGRAMMATIC
US Digital Display Ad Spend ($bn)
65%84%
35%16%
2015 2019
Programmatic Non-Programmatic
27 55
+27%
-1%
1
82
5
3
13
2015 2019Mobile Desktop
US Programmatic Video Ad Spend ($bn)
+61%
+32%
88%
12%
2017In-app Mobile web
Source: Estimations based on eMarketer 2017 numbers 6
25%
75%
$30B
$120B Global mobile programmatic ad spend 2019
The $30B addressable market will be
dominated by 5-7 large independent players
Independent Ad Tech Vendors
Owned & Operated Platforms
SIGNIFICANT MARKET OPPORTUNITY FOR INDEPENDENT ADVERTISING TECHNOLOGY
PUBLISHERS NEED INDEPENDENT PROVIDERS TO COUNTER MARKET IMBALANCE
COMPANY OVERVIEW & LATEST NEWS02
7
Leading mediation platform for gaming developers
SDK implemented by thousands of publishers
Incentivized ad units (Rewarded video, Offer wall)
Expanded direct, SDK-implemented publisher relationships
Ability to monetize display and interstitial video units
In-app mobile exchange New app verticals (news,
social, utilities) New demand sources
(DSP, brand campaigns) Advanced audience
segmentation capabilities
Cross-screen video technology (desktop, mobile web, in-app)
Proprietary video player Premium video demand In-house Ad server RTB
COMPLEMENTARY TECHNOLOGY, DEMAND &PUBLISHER VERTICALS
8
EXTENSIVE DIRECT PUBLISHER RELATIONSHIPS
9
1.2BMAUs
35Data parameters/user (directly from SDK)
spread across
coming from passing180
Countries10KApps with code-on-page
Dania – fix formatting of the slide to fit the size of the page
OVER 10,000 DIRECTLY INTEGRATED APPS, ACROSS VERTICALS
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Leading Content Publishers
Social & Messaging App Developers
Utilities App Developers
Gaming App Developers
Huffington PostHearst
Daily MailTV Guide
Line
Pinger
Kik
MeetMeTalkatone
Text Me
Ask FM
National Rail
Baidu
Cheetah Mobile
Sungy Mobile
iHandy
Pixelberry Studios Color Switch
Sega Rovio Entertainment
Ketchapp Gree
Upday Axel SpringerABC News
VIDEOSUITE
AUDIENCEVAULT
REVENUE DESK
VAMP Video Ad Monetization Platform
Dynamic configuration & reporting with over 40 data parameters
Full video support including proprietary formats
Robust insights about user engagement & characteristics
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DIRECT PUBLISHER INTEGRATIONS CREATING MAXIMUM VALUE FOR PUBLISHERS & ADVERTISERS
ABC News Huffington PostDaily Mail Line BaiduText Me Pinger MeetMe Pandora Cheetah MobileColor SwitchGlu Games
‘KEEPING IT CLEAN’ INITIATIVE Moving away from aggregated supply - closing down specific partners Focusing primarily on further expanding direct publisher integrations
by offering advanced trading tools, ad formats and user data capabilities to publishers
Short-term revenue impact – prerequisite for long-term growth
PROVIDING A QUALITY MARKETPLACE Direct publisher inventory – reliable, brand-safe, data-rich Transparent pricing, increased ROI by cutting intermediaries Advanced programmatic environment supporting all ad formats
VALUE OF DIRECT PUBLISHER INTEGRATIONS Optimized monetization through more, higher quality data Meeting advertisers’ requests for direct supply & unique inventory Transparent, clean marketplace creating pull on both advertisers and
publishers-side
FINANCIALS OVERVIEW03
13
KEY FINANCIALS
14
PRO-FORMA FINANCIALS Q3 2017 YTD
In €mQ1-Q3
2017Q1-Q3
2016Q3
2017Q3
2016Year 2016
Revenues 177.2 147.1 57.5 52.3 218.1
Revenue share to third parties (125.0) (103.3) (40.3) (37.3) (155.7)
Gross Margin 52.2 43.8 17.2 15.0 62.4
Gross Margin % 29.5% 29.8% 29.9% 28.7% 28.6%
Personnel costs (32.9) (29.7) (10.9) (10.6) (41.0)
IT Cost (13.9) (7.4) (4.7) (3.0) (11.6)
Other operating expenses, net (12.7) (17.8) (3.7) (7.2) (13.8)
EBITDA (Adj) (3.4) (3.7) 0.4 (1.6) (4.6)
EBITDA Margin (1.9%) (2.5%) 0.8% (3.0%) (2.1%)
Restated: Certain amounts of 2016 financials shown here do not correspond to the 2016 financial statements and reflect adjustments made (Please refer to note 2 of the Interim Financial Statements for Q3 2017).
€43.3m
€64.0m
€129.1m
€218.1m
€240.0m
2013 2014 2015 2016 2017E
GROSS REVENUE DEVELOPMENT
Stable topline development through strong market positioning
At an average gross margin of 30% from 2017E-2020E
15
TARGET 2020 Gross revenue run rate of
€600 million EBITDA margin between 8%
and 10%
-€12.1m
-€5.8m
€15.0m
2015 2016 2017E 2018E
-€1.9m to €0.1m
CLEAR ROAD TO PROFITABILITY
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67%of revenues from programmatic45%+ growth in Q1-Q3 2017 YoY
73%of revenues from mobile14%+ growth in Q1-Q3 2017 YoY
34%
60% 56%67%
66%
40% 44%33%
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017
Programmatic Non-Programmatic
89%77% 77% 73%
11%23% 23% 27%
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017
Mobile Desktop
PROGRAMMATIC MOBILE
FY2015
FOCUSING ON THE AREAS OF FASTEST MARKET GROWTH
17
VIDEO APAC
43%of revenues from video20% growth in Q1-Q3 2017 YoY
26%43% 43% 43%
74%57% 57% 57%
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017
Video Display
27%of revenues from APAC30% growth in Q3 2017 QoQ
48% 45% 43%
37%30% 28%
11% 21% 27%
5% 4% 2%
Q1 2017 Q2 2017 Q3 2017
NA EMEA APAC RoW
Gross revenue based on publisher location
Q1 2017
FOCUSING ON THE AREAS OF FASTEST MARKET GROWTH
OUTLOOK04
18
NEW, UNIFIED FYBER BRAND WILL BE LAUNCHED IN Q1 2018RTB
19
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POINTS OF FOCUS AND DIFFERENTIATION
EXTENSIVE DIRECT PUBLISHER RELATIONSHIPS Our technology is trusted by more than 10,000 app-developers who integrated our code into their apps
DATA POWERHOUSEExtensive and robust data covering 1B+ user-base, enabling both buyers and sellers to automate and optimize transactions
MOBILE-FIRST PROGRAMMATIC PLATFORMIntroducing leading-edge programmatic (data-driven, automated) tools for the in-app environment while providing advanced capabilities in the web environment (mobile & desktop)
ADVANCED DIGITAL VIDEO CAPABILITIES Extensive video tools that support industry standard formats while offering proprietary, innovative video ad-units and technology
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OUR GAME PLAN
POWERFUL EXCHANGEFirst to successfully combine Programmatic and Direct Sales (User Acquisition, Direct Response & Brand campaigns)
UNIFIED AUCTIONAuctioning multiple types of demand partners in real time (Ad Networks, Private Deals, Programmatic)
SEE THROUGH PLATFORMAll transactions carried out via fair auction - Visible to all partners on our transparent, granular reporting interface
DATA-DRIVEN AUDIENCE SEGMENTATIONEnable both publishers and demand partners to package & target audiences based on the parameters they care about
INVENTORY MANAGEMENT TOOLS THAT OPTIMIZE REVENUE & USER EXPERIENCEEmpower publishers to engage with users based on their tolerance to ads and monetization potential
TECHNOLOGY THAT ADDRESSES THE INDUSTRY’S MOST BURNING NEEDS
THANK YOU!
APPENDIX05
23
WE ARE A LEADING PROGRAMMATIC MONETIZATION PLATFORM FOR MOBILE & VIDEO
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KEY METRICS
Monthly Unique Users 1.2bn
Gross Revenues H2 2017E €120m+
EBITDA H2 2017E €2m - €4m
EBITDA 2018E €15m+
% Revenues from Programmatic* 67%
% Revenues from Video* 43%
% Revenues from Mobile* 73%
*As per Q3 2017 YTD
INVESTMENT HIGHLIGHTS
COMPREHENSIVE PUBLISHER SOLUTION Including ad exchanges, ad serving, mediation, publisher yield optimization tools; Supporting all ad formats incl. innovative video ad units; Serving all publisher verticals from gaming app developers to ‘Comscore200’ publishers
NEUTRAL ADVERTISING TECHNOLOGYA true one-stop-shop alternative for publishers, who are loosing ad spend share to the internet giants; and are reluctant to share their valuable data with those giants
MASSIVE GLOBAL REACH AND DATA CAPABILITIES Reaching 1.2 billion monthly unique users, integrated with many of the world’s leading publishers; Leveraging various sources of data, including our own proprietary data to optimize monetization and user experience
MOBILE IN-APP FIRST, YET CROSS-SCREENFocusing on the fastest growing markets of mobile, video and programmatic advertising; yet offering full stack across in-app, mobile web and desktop
1
2
3
4
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FYBER MANAGEMENT BOARD
Ziv ElulCEO
Founder and CEO of Inneractive;15+ years of industry & management experience, MB member of Young Presidents’ Organization
Crid YuCOO
Brings 15+ years experience in digital media, with a focus on mobile advertising, with companies such as Google and InMobi, and previously McKinsey & Company
Yaron Zaltsman CFO
Brings extensive knowledge of working within public companies, worldwide, and specifically on the Frankfurt Stock Exchange; CFO of Ado Properties, previously Deloitte, Arthur Andersen
Dani Sztern Deputy CEO
Brings over 20 years of diverse experience at large public and private companies, mainly in the software industry, as both COO and CFO, including Adgar, Rabintex, Identify Software
FINANCIALSPRO-FORMA INTERIM STATEMENT OF PROFIT OR LOSS
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In €m Q1-Q3 2017 Q1-Q3 2016 Q3 2017 Q3 2016 Year 2016Revenue 177.2 147.1 57.5 52.3 218.1
Revenue Share to Third Parties (125.0) (103.3) (40.3) (37.3) (155.7)
Gross Margin (€) 52.2 43.8 17.2 15.0 62.4
Other Operating Income 0.5 0.2 0.3 - 9.4
Personnel Costs (32.9) (29.7) (10.9) (10.6) (41.0)
Other Operating Expenses (27.2) (25.4) (8.7) (10.3) (34.7)
EBITDA (7.3) (11.1) (2.1) (5.8) (3.9)
Depreciation, Amortization & Impairment (8.4) (8.1) (2.3) (2.7) (11.8)
EBIT (15.7) (19.2) (4.3) (8.5) (15.7)
Finance Income 2.9 0.1 - - 0.2
Finance Expenses (9.3) (10.5) (3.5) (2.9) (13.5)
Foreign Exchange Gains (Losses) 0.6 (1.6) - (1.5) (1.2)
Loss for the Year before Tax (21.5) (31.1) (7.8) (12.8) (30.2)
Income Tax Gain (Expense) 2.4 (1.4) 0.4 (0.8) (3.1)
Loss for the Year from Continuing Operations (19.1) (32.6) (7.4) (13.5) (33.3)
Profit for the Year from Dis. Operations after Tax - 1.6 - - 3.4
Loss for the Year after Tax (19.1) (31.0) (7.4) (13.5) (29.9)Profit (Loss) Attributable to Owners of the Parent (19.1) (31.0) (7.4) (13.5) (29.9)Earnings per Share
Basic Loss per Share (€) (0.17) (0.27) (0.07) (0.12) (0.26)
Diluted Loss per Share (€) (0.16) (0.26) (0.06) (0.11) (0.25)
FINANCIALSPRO-FORMA INTERIM STATEMENT OF FINANCIAL POSITION
In €k 30 SEP 2017 31 DEC 2016Non-current Assets 247,125 259,434
Goodwill 211,391 216,951
Other Intangible Assets 33,691 40,039
Property and Equipment 1,333 1,940
Non-current Financial Assets 710 504
Current Assets 96,958 106,193Inventories 152 271
Trade and other Receivables 70,186 63,539
Other Current Fin. Assets 10,654 16,292
Other Current Assets 1,510 1,109
Cash and Cash Equivalents 14,456 24,982
Total Assets 344,083 365,627
In €k 30 SEP 2017 31 DEC 2016Equity 99,940 120,444
Issued Capital 11,453 11,453
Share Premium 184,812 184,812
Treasury Shares (4,745) (5,049)
Other Capital Reserves 23,908 17,518
Legal Reserve 4,259 4,259
Accumulated Deficit (115,228) (96,093)
Other Components of Equity (4,519) 3,544
Equity attributable to Shareholders 99,940 120,444
Non-current Liabilities 144,196 150,550Long-term Employee Benefits Liabilities 407 429
Long-term Borrowings 131,558 136,642
Deferred Tax Liabilities 4,166 4,054
Other non-current Liabilities 8,065 9,425
Current Liabilities 99,947 94,633Trade and other Payables 65,512 78,059
Short-term Employee Benefits Liabilities 14,207 14,001
Short-term Borrowings 18,812 1,429
Other Current Liabilities 484 479
Income Tax Payables 926 570
Short term Provisions 6 95
Total Liabilities 244,143 245,183Total Equity and Liabilities 344,083 365,627
Share Structure
Issuer Fyber N.V.Ticker Symbol FBEN
ISIN NL0012377394
Market Frankfurt Stock Exchange, Prime Standard
Currency Euro
Number of shares 114,533,333
52 weeks high / -low 2.65 / 0.57
Shareholder registered above 3% % Voting Rights
Former Fyber Shareholders (P+P Pöllath und Partners) 20%
Abu Dhabi Securities 18%
Altera Absolute Global Master Fund 6%
FIL Limited (FIL Investments International, FIL Pension Management) 3%
Key Share Data
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FYBER N.V.
29
[email protected] +49 30 609 855 555
Office AddressJohannisstraße 20, 10117 Berlin, Germany
About Fyber N.V. Fyber is a global technology company, developing a next generation platform for the programmatic trading of ads, in a data-driven environment. Ourmission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their advertising propertiesthrough advanced technologies, innovative ad formats and data-driven decision-making. Fyber’s technology platform provides an open-access platform forboth digital advertisers and publishers, enabling cross-device advertising with a global reach of more than 1.2 billion unique monthly users. Fyber wasfounded in 2010 as RNTS Media and has offices in Berlin, Tel Aviv, New York, San Francisco, London and Beijing. The Company employs more than 300people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol ‘FBEN’. he fast-growing companies which compriseFyber Group received recognition and awards in 2016, including: Deloitte Technology Fast 500™ 2016 EMEA company; was placed in Gruenderszene’sTop 50 growth ranking 2016, and won the Golden Bridge Gold Award 2016.