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JOHN CROLL CHIEF EXECUTIVE OFFICER NIMESH SHAH CHIEF FINANCIAL OFFICER 21 AUGUST 2015 FY15 RESULTS

FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

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Page 1: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

JOHN CROLL CHIEF EXECUTIVE OFFICERNIMESH SHAH CHIEF FINANCIAL OFFICER21 AUGUST 2015

FY15 RESULTS

Page 2: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

AGENDAOVERVIEW OF FY15 RESULT FY15 FINANCIAL PERFORMANCE GROWTH STRATEGY AND ACQUISITION OF KING CONTENTFY16 OUTLOOKQ&AAPPENDIX - KING CONTENT SUPPLEMENTARY INFORMATION

JOHN CROLL NIMESH SHAHJOHN CROLL JOHN CROLLJOHN CROLL AND NIMESH SHAH

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 3: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

FY15 RESULTS OVERVIEW

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 4: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

∙ Revenue of $127.3m, 2% ahead of prospectus and growth of 15% YoY. Organic growth of 11%

∙ ANZ ARPC of $31.4k, growth of 14% YoY

∙ Strong growth in penetration of ANZ value added services

- Media database to 17.3% - Social to 13.2% - Insights to 8.0%

∙ Asian revenue growth of 19% YoY

15% REVENUE GROWTH 38% EBITDA GROWTH 44% NPATA GROWTH

∙ EBITDA of $42.5m, 3% ahead of prospectus and growth of 38% YoY

∙ EBITDA margin expands to 33% from 28%

∙ Operating cash flow conversion of 93%

∙ Underlying NPATA of $27.4m, 1% ahead of prospectus and pro forma growth of 44% YoY

∙ Reported NPATA of $26.5m, pro forma growth of 39% YoY

ISENTIA EXCEEDS FY15 PROSPECTUS FORECAST

ISENTIA DECLARES FINAL DIVIDEND OF 3.8C PER SHARE

FY15 RESULTS PRESENTATION 21 AUGUST 2015 4

Page 5: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

$ MILLION FY15 ACTUAL

FY15 PROSPECTUS

PROSPECTUS VARIANCE $M

PROSPECTUS VARIANCE %

FY14 PRO FORMA ACTUAL

FY15 VS FY14 VARIANCE %

Revenue 127.3 124.4 2.9 2% 110.6 15%

SaaS 99.1 95.9 3.2 3% 88.4 12%

VAS 28.2 28.5 (0.3) (1%) 22.2 27%

ANZ 103.0 100.2 2.8 3% 90.1 14%

Asia 24.3 24.2 0.1 0% 20.5 19%

Expenses (84.8) (83.1) (1.7) (2%) (79.7) (6%)

EBITDA 42.5 41.3 1.2 3% 30.9 38%

EBITDA margin 33% 33% 28%

Underlying NPATA* 27.4 27.2 0.2 1% 19.0 44%

*Underlying NPATA excludes the impact of non-recurring items of ($0.9)m

FY15 RESULT VS PROSPECTUS AND VS PRIOR YEAR

FY15 RESULTS PRESENTATION 21 AUGUST 2015 5

Page 6: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

FY15 FINANCIAL PERFORMANCE

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 7: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> 15% group revenue growth

> 14% growth in ANZ revenue driven by:

○ SaaS and content services growth of 12% ○ Continued take-up of additional value-added services

products by existing customer base delivering VAS growth of 31%

> 19% Asian revenue growth

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0FY14 FY15

20.5

110.619%

14%

24.3

103.0

127.3

Asia

ANZ

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0FY14 FY15

22.2

110.627%

12%

28.2

127.3

VAS

SaaS

90.1

88.4 99.1

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0FY14 FY15

20.5

110.619%

14%

24.3

103.0

127.3

Asia

ANZ

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0FY14 FY15

22.2

110.627%

12%

28.2

127.3

VAS

SaaS

90.1

88.4 99.1

REVENUE BY GEOGRAPHY $M

REVENUE BY PRODUCT/SERVICE LINE $M

STRONG FY15 REVENUE GROWTH

FY15 RESULTS PRESENTATION 21 AUGUST 2015 7

Page 8: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> EBITDA growth of 27% reflects margin increase from 41% in FY14 to 45% in FY15 due to upsell of higher margin VAS products to existing customer base and scalable platforms

> Continued transition to SaaS subscription from volume-based mainstream media. Fixed fee share of revenue to 35% in FY15 from 31% in FY14

> SaaS revenue growth reflects investment in Mediaportal and depth of coverage. High client retention provides strong opportunity to upsell to value added services

> Value added services growth of 31% was underpinned by on-going product development and excellent client service, reflected by +27 NPS score for FY15

ISENTIA ANZ GROUP REVENUE MIX (% OF TOTAL)

100

80

60

40

20

0FY14 FY15

31%

20%

6%

6%17%

15%

11%

35%

14%

12%

Copyright(pass throughto publishers)

Volume‐basedmainstream media - broadcast

Volume‐based mainstream media – press

Volume‐based online news and internet monitoring

VAS

Subscription(fixed fee)

22%

11%

ANZ FINANCIALS

ISENTIA GROUP ANZ REVENUE MIX % OF TOTAL

$M FY14 FY15 FY15 VARIANCE %

Revenue

SaaS 77.1 86.0 12%

VAS 13.0 17.0 31%

Total Revenue 90.1 103.0 14%

EBITDA 36.7 46.5 27%

EBITDA margin 41% 45%

AUSTRALIA / NEW ZEALAND RESULTS

FY15 RESULTS PRESENTATION 21 AUGUST 2015 8

Page 9: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> ARPC for FY15 was $31.4K which is an 8% increase from FY15 H1 driven by increased take-up of VAS products

> Social media and analysis penetration increased to 13.2% in FY15 H2 from 7.0% in FY14 H2, demonstrating the continued focus on delivering quality social products and services to the client base

> Insights penetration increased to 8.0% from 4.9% in FY14 H2, reflecting future recurring revenue

> Media database penetration increased to 17.3% from 14.4% in FY 14 H2

ANNUALISED ANZ MONTHLY AVERAGE REVENUE PER CLIENT (ARPC)

VAS PENETRATION OF ANZ UNIQUE CUSTOMERS

ISENTIA ANZ GROUP REVENUE MIX (% OF TOTAL)

23,942

ARPC

($)

FY13 H1

32,000

31,000

30,000

29,000

28,000

27,000

26,000

25,000

24,000

23,000FY13 H2 FY14 H1 FY14 H2 FY15 H1 FY15 H2

24,186

25,231

27,482

31,39529,094

FY13 H1

20%

15%

10%

5%

0%FY13 H2 FY14 H1 FY14 H2 FY15 H1 FY15 H2

Pene

trat

ion

of

ANZ

uniq

ue c

usto

mer

s

10.3%

3.9%

2.9% 3.9% 4.2% 4.9%

7.1% 8.0%4.7% 5.5%

7.0%

10.0%13.2%

16.7%

17.3%

11.7%

14.9% 14.4%

Insights reports

Social Monitoring + Analysis

MediaDatabase

ISENTIA ANZ GROUP REVENUE MIX (% OF TOTAL)

23,942

ARPC

($)

FY13 H1

32,000

31,000

30,000

29,000

28,000

27,000

26,000

25,000

24,000

23,000FY13 H2 FY14 H1 FY14 H2 FY15 H1 FY15 H2

24,186

25,231

27,482

31,39529,094

FY13 H1

20%

15%

10%

5%

0%FY13 H2 FY14 H1 FY14 H2 FY15 H1 FY15 H2

Pene

trat

ion

of

ANZ

uniq

ue c

usto

mer

s

10.3%

3.9%

2.9% 3.9% 4.2% 4.9%

7.1% 8.0%4.7% 5.5%

7.0%

10.0%13.2%

16.7%

17.3%

11.7%

14.9% 14.4%

Insights reports

Social Monitoring + Analysis

MediaDatabase

KEY REVENUE DRIVERS - ANZ

FY15 RESULTS PRESENTATION 21 AUGUST 2015 9

Page 10: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> 19% growth in Asia revenue was driven by:

○ Increase in ARPC to $14.1k in FY15, 23% YoY growth ○ VAS growth of 22% driven by 22% social revenue growth

> Asia VAS customers increased by 28% YoY which was 12% below prospectus target. However, in Q4 customers acquired were of higher contract value, particularly Greater China based multi-regional clients

> Mediaportal rollout will provide ongoing revenue growth into FY16

> 43% growth in EBITDA represents continued margin expansion to 23%

> Hong Kong acquisition is performing ahead of expectations, with more than 95% of net customers retained, which equates to more than 96% of revenue

> Strengthened Asian management team to improve execution and deliver growth

ANNUALISED ASIA MONTHLY AVERAGE REVENUE PER CLIENT (ARPC)

ASIA VAS - UNIQUE CUSTOMERS

400

300

200

100

0

Asia

n VA

S cu

stom

ers

FY13 H1 FY13 H2 FY14 H1 FY14 H2 FY15 H1

219244

280301

362

FY15 H2

385

ARPC

($)

FY13

9,649

11,553

14,15715,000

14,000

13,000

12,000

11,000

10,000

9,000FY14 FY15

400

300

200

100

0

Asia

n VA

S cu

stom

ers

FY13 H1 FY13 H2 FY14 H1 FY14 H2 FY15 H1

219244

280301

362

FY15 H2

385

ARPC

($)

FY13

9,649

11,553

14,15715,000

14,000

13,000

12,000

11,000

10,000

9,000FY14 FY15

ASIA FINANCIALS

$M FY14 FY15 FY15 VARIANCE %

Revenue

SaaS 11.2 13.1 17%

VAS 9.2 11.2 22%

Total Revenue 20.5 24.3 19%

EBITDA 4.0 5.7 43%

EBITDA margin 20% 23%

KEY REVENUE DRIVERS - ASIA

FY15 RESULTS PRESENTATION 21 AUGUST 2015 10

Page 11: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> Operating expenses of $84.8m, an increase of 6%, driven by cost of sales growth mainly due to copyright (5% increase in operating expenses excluding copyright) and data acquisition costs

> Increased copyright expense in FY15 reflects the full year impact of prior year acquisition and SaaS and content revenue growth

> Operating expenses growth of 6% compares to 15% revenue growth, resulting in the increase in EBITDA margin to 33% in FY15 from 28% in FY14

$M PROFORMA FY14 FY15

VARIANCE $M

VARIANCE %

Cost of sales (including copyright) 20.6 23.9 3.3 16%

Employee expenses 50.4 52.5 2.1 4%

Other operating expenses 8.8 8.4 (0.4) (5%)

Total operating expenses 79.7 84.8 5.1 6%

Operating expenses excluding copyright 67.5 71.2 3.7 5%

KEY OPERATING EXPENSES DRIVERS

FY15 RESULTS PRESENTATION 21 AUGUST 2015 11

Page 12: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

$M FY15 ACTUAL FY14 PRO FORMA VARIANCE $M VARIANCE %

Revenue 127.3 110.6 16.7 15%

SaaS 99.1 88.4 10.7 12%

VAS 28.2 22.2 6.0 27%

ANZ 103.0 90.1 12.9 14%

Asia 24.3 20.5 3.8 19%

Expenses (84.8) (79.7) (5.1) (6%)

Cost of sales (including copyright fees) (23.9) (20.6) (3.3) (16%)

Employee costs (52.5) (50.4) (2.1) (4%)

Other operating expenses (8.4) (8.8) 0.4 5%

EBITDA 42.5 30.9 11.6 38%

EBITDA margin 33% 28% - -

Depreciation and amortisation (4.3) (3.8) (0.5) (12%)

EBITA 38.2 27.1 11.1 41%

Amortisation of acquired intangibles (9.4) (8.6) (0.8) (9%)

EBIT 28.9 18.6 10.3 55%

Net finance costs/FX (2.4) (3.3) 0.9 27%

Profit/(loss) before tax 26.5 15.3 11.2 73%

Tax (expense)/benefit (6.0) (2.5) (3.5) (140%)

Non-recurring items (0.9) 0.0 (0.9) -

NPAT 19.6 12.8 6.8 53%

Amortisation of acquired intangibles (after tax) 6.9 6.2 0.7 11%

NPATA 26.5 19.0 7.5 39%

Underlying NPATA* 27.4 19.0 8.4 44%

Earnings per share (cents)** 13.7 9.5 4.2 44%

Dividend per share (cents) 6.9 0.0 6.9 NM*Non-recurring items relate to acquisition costs and IPO-related tax adjustments **EPS is based on underlying NPATA of $27.4m

FY15 RESULTS OVERVIEW

FY15 RESULTS PRESENTATION 21 AUGUST 2015 12

Page 13: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> FY15 net working capital movement impacted by growth in the business

> Operating cash flow conversion of 93% in FY15

> A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

> FY15 capital expenditure in line with prospectus guidance of 5% of revenue

Oper

atin

g Ca

sh F

low

FY12 FY13 FY14 FY15

40.0

50.0

0.0

10.0

20.0

30.0

OPERATING CASH FLOW $M

$M FY12 FY13 FY14 FY15

EBITDA 22.8 22.9 30.9 42.5

Net working capital 1.0 0.6 (1.2) (2.9)

Operating cash flow 23.8 23.5 29.7 39.6

Conversion (%) 104% 103% 96% 93%

OPERATING CASH FLOW

FY15 RESULTS PRESENTATION 21 AUGUST 2015 13

Page 14: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KEY POINTS

> Total facility of $65 million

○ $55 million three year revolving cash advance facility (Facility A), with $55 million drawn down at Completion

○ $10 million three year revolving multi-option facility (Facility B)

> $31.7 million cash and equivalents

> Loan covenant 3.25x providing leverage headroom of 86%

> Post acquisition of King Content net debt of $49.3m and leverage ratio less than 1x

$M FACILITY COMMITMENT DRAWDOWN

Facility A 55.0 55.0

Facility B 10.0 0.0

Total debt 65.0 55.0

Cash and cash equivalents and prepayments 31.7

Net Debt 23.3

Leverage ratio 0.55x

$M DRAWDOWN

Total debt 55.0

Cash and cash equivalents and prepayments 5.7

Net Debt 49.3

AT JUNE 30, 2015

POST ACQUISITION OF KING CONTENT

CAPITAL STRUCTURE

Initial payment for King Content acquisition to be funded from cash and cash equivalents and prepayments

FY15 RESULTS PRESENTATION 21 AUGUST 2015 14

Page 15: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

GROWTHSTRATEGY& OVERVIEW OF KING CONTENT

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 16: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

VALUE ADDED SALES TO ANZ

CLIENTS

ASIAN MEDIA INTELLIGENCE

EXPANSION

PRODUCTDEVELOPMENT

AND INNOVATION

STRATEGIC ACQUISITIONS

✓ 31% YoY revenue growth in value added services:

- Daily Reports to high value existing clients.

- Insights and Analysis dashboards and Industry Benchmarking driving higher revenue per customer.

- Social Media products being extended from listening through to engagement and marketing offering being developed.

✓ Opportunities to enhance the 3,500 ANZ client relationships with marketing strategies and digital content from the King Content acquisition.

✓ 22% revenue growth in value added services in Asia with social media insights to global brands in China driving revenue.

✓ Mediaportal delivered in the Asian market with the majority of clients transferred onto the platform.

✓ Enhancements to Media Alerts and the Connect Media Database on Mediaportal will increase revenue per customer and new clients across the region.

✓ Asian Management team strengthened with strong marketing and agency experience to align with our clients’ needs.

✓ Mediaportal: Available across Australia, NZ, Singapore, Hong Kong, Malaysia, Thailand, Indonesia, Philippines & Vietnam. Introducing Mediaportal Connect, the first regional Media Directory and media release service, will accelerate client up-sell and attract new clients.

✓ Social Marketing Suite: Targeting a new digital/social marketing audience, Social Channels for Facebook launched. Supports social channels, advocacy, engagement and customer care and analytics.

✓ China Social Insights: A User Centred Design study completed in Beijing and Shanghai showed strong market interest in existing Isentia product lines; development to adapt Mediaportal is expected in early 2016.

✓ Horizon Scanner: Isentia’s “social media signal detection” research and development project is complete. Strong interest from large government and corporate clients. The technology can filter into Isentia’s broader product portfolio (eg. Mediaportal) in future.

✓ King Content acquisition provides the opportunity to leverage the Isentia client base, access additional marketing budgets within our client portfolio and be a market leader in the rapidly growing content marketing segment.

✓ Acquisitions in high growth markets continue to be explored.

✓ Successful completion of Hong Kong media intelligence acquisition.

DELIVERING ON OUR GROWTH STRATEGIES

FY15 RESULTS PRESENTATION 21 AUGUST 2015 16

Page 17: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KING CONTENT BUSINESS OVERVIEW

KEY POINTS > Australian content marketing industry size currently $645 million and

expected to grow at a CAGR of 21% to calendar 2019.*

> Specialist content marketing companies in Australia such as King Content represent 15% of the total market - $95 million.

> King Content is the largest specialist agency with 15% market share, double its market share a year ago.

> King Content is a global, digital content marketing agency with over 40 active clients and servicing brands in over 30 countries.

> Headquartered in Sydney, it was established in 2010 with offices in Melbourne, New York, London, Singapore and Hong Kong and over 60 full-time employees.

> King Content develops and delivers comprehensive content marketing strategies and creates and distributes engaging, relevant and informative digital content that enables brands to communicate with their target audience.

> King Content has developed a proprietary SaaS platform, Communiqué, that delivers a strategic, scalable and measurable approach to content marketing. The platform allows King Content and its clients to centralise and streamline the processes around content production, distribution and measurement.

> King Content has strategic relationships with LinkedIn, Outbrain and Getty Images.

> King Content has been shortlisted in the Content Marketing Institute’s global 2015 Content Marketing Awards for Project of the Year and Agency of the Year for agencies with less than 100 employees.

*PQ Media Global Content Marketing forecast 2015-19

FY15 RESULTS PRESENTATION 21 AUGUST 2015 17

Page 18: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

THE ISENTIA INTEGRATED COMMUNICATIONS MODEL + KING CONTENT

EARNED MEDIA

OWNED MEDIA

PAIDMEDIA

Sharing

Public Relations Activity

In-feed to Communique

Insights

Your Web PropertiesWebsite

Mobile siteBlog site

Isentia.buzz Your social media networks

Social Channels Microsites

SEO & brand content drive earned media (sharing) &

traffic

Isentia.mediaportal

Media Distribution

Gain more exposure to web properties with SEO* and PPC*

Advertising RetargetingPaid InfluencersPaid Content PromotionSocial Media AdsNative Partners

STRATEGY

Audience Analysis

Competitor Analysis

Strategy Development

*SEO = search engine optimisation and PPC = pay per click

FY15 RESULTS PRESENTATION 21 AUGUST 2015 18

Page 19: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

✓ King Content’s services will access Isentia’s larger sales force in Australia and New Zealand.

✓ Ability to cross-sell King Content’s services across Isentia’s existing 3,500+ clients, broadening the range of relationships from PR into marketing, and strengthening existing digital relationships within clients.

✓ Isentia’s strong relationship with government clients will open a new client category for King Content.

✓ Extension of our current social media offering provided by TwoSocial

✓ Isentia’s presence in seven Asian countries can assist in the expansion of King Content’s current presence in Singapore and Hong Kong.

✓ Isentia current profile in Asia is largely global marketing clients and with King Content the services will extend to Strategy – Content – Social – Native – Influencers – PR – Monitoring - Analytics and Insights.

✓ A unique offering in the marketplace; differentiated against competitors and a strong argument for clients to consolidate suppliers.

✓ Communique and Mediaportal can use analytics and reporting modules from each platform to deliver full communications measurement.

KING CONTENT STRATEGIC RATIONALE

VALUE ADDED SALES TO ANZ

CLIENTS

ASIAN MEDIA INTELLIGENCE

EXPANSION

PRODUCTDEVELOPMENT

AND INNOVATION

Isentia is the Asia-Pacific market leader in media intelligence, King Content is the leading content marketing agency in Australia with a global reach. The Isentia/King Content combination provides a unique service across earned, owned and paid media that will further diversify Isentia’s revenue streams in another high growth market segment and extend the services through:

COMMUNICATIONS STRATEGY CONTENT CREATION DISTRIBUTIONEARNED, OWNED & PAID MONITORING ANALYSIS & INSIGHTS

FY15 RESULTS PRESENTATION 21 AUGUST 2015 19

Page 20: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KING CONTENT FINANCIAL METRICS

> Total expected purchase price of $48m based on the current forecast over a 2 year earn-out period

○ Initial payment of 60% of the business valuation will be fully cash funded ○ Two earnout payments making up the remaining 40% of the consideration

at the end of FY16 and FY17

> King Content is expected to contribute an increase of circa 10% to Isentia’s consolidated FY16 revenue and be EPS accretive in the high single digit range

> The business is expected to operate with high teens EBITDA margins

> Valuation represents an EBITDA multiple of 10x

> Key management locked in

FY15 RESULTS PRESENTATION 21 AUGUST 2015 20

Page 21: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

FY16OUTLOOK

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 22: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

FY16 OUTLOOK

> High single digit organic revenue growth

> Mid-teens organic EBITDA growth

> King Content is expected to contribute an increase of circa 10% to Isentia’s consolidated FY16 revenue and be EPS accretive in the high single digit range

FY15 RESULTS PRESENTATION 21 AUGUST 2015 22

Page 23: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

Q&A

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 24: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

APPENDIXKING CONTENT SUPPLEMENTARY INFORMATION

FY15 RESULTS PRESENTATION 21 AUGUST 2015

Page 25: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

KING CONTENT - POINTS OF DIFFERENCE

STRATEGYPositioning strategy as an essential first step in content marketing.

COMMUNIQUÉOur platform allows us to manage content programs more effectively than our competitors and clients.

GLOBAL CAPABILITIESUsing our global presence to help brands implement global strategy at a local level.

FULL-SERVICE CONTENT MARKETINGWe have the capabilities to manage every aspect of the content marketing process - from strategy to measurement and optimisation.

OUTSOURCED CONTENT CREATIONDrawing on an extensive network of expert contributors to create high-value, cost-effective content.

King Content Offices

Network of specialist content producers, influencers and publisher partners

FY15 RESULTS PRESENTATION 21 AUGUST 2015 25

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KING CONTENT LEADERSHIP TEAM

CRAIG HODGES CEOFounder Edge Custom Publishing 20 years experience across content, print and digital

LEANNE BRINKIES HEAD OF NATIVE ADVERTISINGFormer Managing Director - Zenith Optimedia Award-winning digital media and marketing specialist Over 15 years experience leading successful campaigns for Australia’s largest brands

PAUL FORD GLOBAL COMMERCIAL DIRECTORDecide Interactive Founder 20 years experience in technology & digital Extensive experience in commercial strategy and digital

CAMERON UPSHALL DIRECTOR, MELBOURNEFormer Head of Professional Services (Asia Pacific) - Salesforce ExactTarget Leadership positions in Fortune 500 technology firms including Dell & HP

TODD WHEATLAND GLOBAL HEAD OF STRATEGYVP of Marketing, Kelly Services Content Marketer of the Year, Finalist Fierce CMO’s 15 CMOs to Watch List

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KING CONTENT - COMMUNIQUÉ

CONTRIBUTOR DATABASE

EDITORIAL MANAGEMENT

PUBLISHING INTEGRATION

REPORTING & ANALYTICS

Search Functionality

Contributor Experience, Expertise & Portfolios

Contributor Ratings

Rates & Availability

Editorial Calendar

Contributor Briefing

Reviews & Approvals

Custom Workflow

CMS Integration

Social Amplification

Translate Media

Stockphoto Integration

Consumption

Engagement

Conversion

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Page 28: FY15 RESULTS - isentia.com · > A final dividend is declared of 3.8 cents per share (unfranked) for a full year dividend of 6.9 cents per share, a 50% payout of FY15 underlying NPATA

This presentation contains general information about the activities of Isentia’s Holdings Pty Limited (ACN 144 573 795) (Isentia or Company) which is current as at 21 August 2015. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with the International Financial Reporting Standards (IFRS) as well as information provided on a non-IFRS basis. This presentation is not a recommendation or advice in relation to Isentia or any product or service offered by Isentia’s subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with Isentia’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular the Full Year Results for the period to 30 June 2015. These are also available at www.isentia.com.

No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, Isentia, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted with this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Isentia, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition or securities.

The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects Isentia’s intent, belief, or expectations at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, Isentia disclaims any obligation or undertakings to disseminate any updates or revisions to this information over time. Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Isentia’s actual results,

performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. For example, the factors that are likely to affect the results of Isentia include, but are not limited to, general economic conditions in Australia and Asia, exchange rates, competition in the markets in which Isentia will operate and the inherent regulatory risks in the business of Isentia. Neither Isentia, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance.

This presentation does not constitute an offer to issue or sell, or solicitation of an offer to buy, any securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of Isentia.

All amounts are in Australian dollars.

All references starting with FY refer to the financial period ended 30 June. For example, FY 15 refers to the period ended 30 June 2015.

DISCLAIMER

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