Buongiorno: Making the Connected Entertainment Experience Easy & Fun
STAR CONFERENCE
Milan, March 27th & 28th, 2012
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After 2 major M&A deals in 2011 (acquisition of Dada.net and spin-off of Lumata), the
deconsolidation of Giglio TV and the contracted sale of Sms.at, Buongiorno is a company:
Specializing in mobile entertainment, focusing almost entirely on a B2C approach, based on
strong product management, technology and direct marketing capabilities combined with a
partnership attitude with mobile network operators
With a team of approx. 800 young professionals, based in 15 countries, conducting business
in more than 20 countries around the world
Generating 2011 proforma revenues (current perimeter) of ~€240 mn with an EBITDA of
~€27 mn Euro: 55% in Europe, 30% in the Americas and 15% in the rest of the world
Running a blend of traditional, feature phone oriented, and of new, rapidly growing smart
phone and tablet oriented, products
With a sound balance sheet and a proven track record in delivering results, profits and cash
flow
Company Profile
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Buongiorno (B!), a media company specializing in mobile entertainment, is approaching a new inflection point in its long term growth path.
In its 12 years of operations, B! has become a € 240 mn revenue company, leading
its sector at the global level and delivering consistent results and profits.
Over the past 2 years, B! has created new products targeting the booming segments
of smart phones and tablets. These offerings take advantage of factors including
consumer trends, network and device evolution and network operators evolving
strategic objectives. Leveraging on some of its assets and stronger capabilities, the
new business lines are growing rapidly, and B! is well positioned to fully exploit its
current competitive advantage.
In 2012 profitable/cash generating “traditional products” will fund the rapid take-off
of the new products, while maintaining a good profitability level for the company. In
spite of some maturity/expected decline of its traditional products, the
extraordinary pace of the new business lines and their long term potential are
opening a new growth phase for the company.
2012: with Smartphones and Tablets, B!’s Opportunities Get Bigger
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• Mainly “personalization” • Impulse buying, not that relevant for customers
after a while • KSF: direct marketing capabilities/distribution • Low repeat usage • Low barrier to entry in the arena, high
competition, fragmented market
• A variety of services • Value for money • KSF: product quality and distribution • Medium to high repeat usage, tell-a-friend • Selective ecosystem built in partnership
with telcom operators
From Feature Phones to Smartphone and Tablet Services
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61%
39%
Feature Phone Services Smartphone and Tablet Services
85%
15%
January 2012 Actual
December 2012 Plan
(B2C 1.0) (Web Apps, Play.me, Winga and Cashlog)
Group Revenues
Moving Fast in New Territory
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Global Leadership
Broad Geographical Footprint
• Rolled out in 20 + countries
• Strong leadership in Spain, USA, Italy, Brazil, South Africa, France
Superior Execution Capability
• Sophisticated online direct marketing capabilities
• Vast content catalogue & effortless user interface
• Tech delivery & billing infrastructure
• Superior churn management capability
Top of the industry profitability
• Entirely subscription based
• Strong KPI based management system
• Sustained profitability for past 7 years
Feature phone services – B2C 1.0
7 Smartphone and tablet services – Mobile Web Apps
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B! to become the leading mobile gambling operator in the major regulated market through a unique proposition:
Wide and Effective Offering: Casino, Bingo, Roulette
• iPad App launched in October 2011 • Roulette, Blackjack, Poker launched in November 2011
Live Gambling TV Proposition: 1st in Italy
• Roulette Show launched in Italy July 2011 • Winga TV Mobile launched in March 2012 • Next up: Spain
Winga Online
Gambling platform Online
• Casino, Poker, Bingo, Skill-games • Winga Poker Italy holds an 8.2% market share
(January 2012)
Winga Mobile
Winga TV
HTML
Smartphone and tablet services – Winga, gaming & gambling
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● Global mobile payment facility (PayPal for mobile), launched for fixed phone lines in December 2011
● Safe & secure: no credit card or other personal details needed
● Italy launched in April 2011 followed by Spain, Germany, and France
www.cashlog.com
1 million transactions per month
A valid alternative to credit cards
HTML
Smartphone and tablet services – Cashlog, mobile payments
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- Linked with Cashlog for improved payment process - € 1.4 mn revenues in 2011 - Break even anticipated by end of 2012
www.play.me
- TV channel in Italy with a complete interactive service - Catalog of >1 million songs
Streaming and Downloadable Music On-Demand with Multi-Device Synchronization
Play.me Radio Edition
Play.me On Demand
PC
iRADIO
PC
MOBILE
HTML
Smartphone and tablet services – Play.me, music streaming
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Financials
12 Perimeter of Analysis
…after the 2 extraordinary operations in 2011: 1) Acquisition of Dada.net
2) Spin-off of B2B activity
The 2011 perimeter of analysis in this report includes Dada.net data consolidated from June 1st onwards, and is net of the perimeter
involved in the spin-off from January 1st onwards, which has been registered separately as a “discontinued operation”
For comparison purposes 2010 economic and financial results have been restated
and are net of the activity connected to the spin-off operation completed in 2011 (registered separately as a “discontinued operation”), while balance
sheet data relative to 2010 is that published as of December 31, 2010
13 Economic and Financial Highlights 2011
(Euro mn) FY 2011 FY 2010 restated
Revenues 228.6 210.9
Marketing Expenses (79.8) (65.8)
IAV 99.1 91.7
Adjusted EBITDA 26.1 29.1
D&A/Other Operating Costs (19.1) (12.4)
Operating profit 7.0 16.7
Financial Charges (6.3) (2.1)
Taxes 3.1 (8.7)
Result of Disposed/Non-Recurrent Activity 11.5 4.7
Consolidated profit 15.2 10.6
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Considering both the Dada.net acquisition and the spin-out effect for the whole year
• Includes Giglio figures for the whole year • Includes sms.at figures for the whole year
pro forma results
Net Financial Debt (at 12.31.2011)
~ € 33 mn
EBITDA ~ € 28 - 32 mn
Revenues ~ € 250 - 260 mn
SEPTEMBER FORECAST
ACTUAL RESULTS
€ 258 mn*
€ 29.5 mn*
€ 19.7 mn
Forecast for Year-End 2011 Right on Target
*
15 Reclassified Balance Sheet
(Euro mn) 12.31.2011 12.31.2010 Var.
Non-Current Assets 252.5 231.1 21.4
Current Assets 95.4 98.4 (3.0)
Total Assets 347.9 329.5 18.4
Net Worth 170.3 169.4 0.9
Non-Current Liabilities 49.3 38.0 11.3
Current Liabilities 129.3 122.1 7.2
Total Liability and Net Worth 347.9 329.5 18.4
16 Net Consolidated Financial Position
(Euro mn) 12.30.2011 12.30.2010
Total Cash and Other Financial Assets 31.2 34.7
Total Payables to Banks (3.6) (8.6)
Total Bank Loans – Current Share (31.8) (20.4)
Total Other Current Financial Liabilities (0.3) (0.2)
Consolidated Net Current Financial Position
(4.5) 5.6
Total Non-Current Financial Receivables (Vendor Loan)
28.2 0
Total Bank Loans – Non-Current Share (42.0) (32.5)
Total Other Non-Current Financial Liabilities
(1.3) 0
Consolidated Net Long-Term Financial Position
(15.2) (32.5)
Net Financial Position (19.7) (27.0)
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(66.7)
(73)
(66.7) (62.2)
(47.3)
(35.4)
(27) (30)
(73)
(65.9)
(19.7)
Evolution of Net Debt (‘07 – ’11)
18 Buongiorno Stock Information: Free Float 71.5%
20.4%
5.2%
3.0%
71.5% Mauro Del Rio*
Mitsui & Co. Ltd.
Holger Van Den Huevel
Market
* 17.2% directly, 3.2% through Capital B! LUX
Relevant Shareholders
Stock Performance Last 3 Months
Thank you for your attention
www.buongiorno.com