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Change cover visual Eric Eichmann, CEO Investor Day, September 2016 Position & Strategy
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. 2 | Copyright © 2016 Criteo
What marketers want vs. what they get
VS.
Relevant people-centric targeting Broad audience-based advertising
Accountable to performance metrics Not tied to business results
Seamless advertising experiences Disjointed consumer experiences
3 | Copyright © 2016 Criteo
Three big trends are driving the transition towards marketers’ needs
Programmatic & data-rich Multiple devices & Mobile ubiquity
buying with real-time environments leading to digitizing offline
metrics fragmented experiences activities
More opportunities to drive Strong need for seamless More data and trackable
performance-based consumer campaigns performance across more
personalized ads media & sales channels
4 | Copyright © 2016 Criteo
Programmatic and data-rich buying drive personalized marketing at scale
Data-Driven Ad Spending (US$ Billions)
177
158
91% 139
of U.S. marketers 121
view People-Based
Marketing and 101
Real-Time Data as 83
important
2014 2015 2016E 2017E 2018E 2019E
5 | Copyright © 2016 Criteo Source: eMarketer, The Relevancy Group, June 2016; eMarketer, Zenith Optimedia, Cowen and Company;
Data-Driven Ad Spending represents the addition of Search and ProgrammaticMultiple devices & environments lead to fragmented marketing experiences
Digital Environments
40%
of ecommerce
transactions
Mobile Desktop Web Apps Android iOS
involve multiple
devices
Multi-Device Publisher Landscape Online / Offline
94%
of U.S. marketers
want to be able to
Single Cross Open Large Walled Online Offline identify an individual
Device Device Web Gardens across channels
and devices
6 | Copyright © 2016 Criteo Source: Cisco VNI, 2016; eMarketer, The Relevancy Group, June 2016; Criteo, State of Mobile Commerce ReportMobile ubiquity is digitizing offline activities
Mobile time spent per day (in hrs:min)
More and more mobile-first companies
CAGR
are digitizing offline activities
3:23 15%
3:11 24%
2:51 20%
2:22 14%
Beyond more mobile time,
it is becoming increasingly possible to
leverage offline data and ecommerce
2012 2013 2014 2015 2016 2017 2018
transactions
US UK Canada China
7 | Copyright © 2016 Criteo
Source: eMarketer, April 2016Our success is based on providing relevant, accountable, seamless marketing at scale
Our DNA has made us the independent leader in performance marketing
Technology Performance
Scale Global
9 | Copyright © 2016 CriteoTechnology
We are a disruptive innovator and a pioneer
2008
We have since pioneered the industry in many ways…
First CPC model in display
Mobile Ad Formats
App advertising Engine Optimized Segments Product Category level
Passback
Universal Apple-compliant solution CPC bidding
Dynamic
Email Match Privacy by Design Largest Hadoop
cluster in Europe
600 TB
Facebook o f Data analyzed
We brought Kinetic everyday Conversion Rate Sizeless
performance-based Design Dynamic
personalized Ads Native Ads CPOP Optimizer creatives
collaborative
Improved
Daily RTB: 55bn bid
marketing filtering
Travel Segments in Engine requests,1.2bn wins
TOP!
to display in 2008 Real-time Traktor Facebook
Dynamic product banners
Creative Exchange
Onetag
Optimization App Deep linking Unique User
4bn products imported
AOV Optimizer from merchants everyday Value Prediction
10 | Copyright © 2016 CriteoTechnology
We have developed powerful machine learning technology
We transform data into sales
$60M/day
600 terabytes client
of shopping intent post-click sales**
analyzed every day on
4bn products*
11 | Copyright © 2016 Criteo * As of June 2016
** $22 billion client post-click sales generated by Criteo over the 12 months ended June 30, 2016Technology
Our engine solves highly complex problems in real time
For each user
Advertiser 1 Creates Unique user
Personalized Unique
Advertiser 2 Creates
Product Personalized valueuser
Creates creative Unique
valueuser
Product
Recommendation Personalized
creative prediction
Advertiser 3 Creates
Product Unique
valueuser
prediction
Recommendation Personalized
creative
Product
Recommendation valueuser
prediction
Unique
Advertiser 4 Product Personalized
creative prediction
Recommendation value
recommendation creative
Advertiser 5 prediction
Internal
Publisher/ Custom ad
advertiser
platform bid serving
auction
Less than 100ms 600,000+ RTB bids/sec 27,000 ads served/sec
to perform the entire process
12 | Copyright © 2016 CriteoTechnology
We have built a massive data set
Bigger than
Amazon and
Advertisers $500bn client sales from eBay
combined
16,000 terabytes of data from
Publishers 44trn publisher bid requests and
8bn user engagement actions
13 | Copyright © 2016 Criteo Note: $500 billion client sales are over the 12 months ended June 30, 2016;16,000 terabytes of publisher data is annualized based on Q2 2016 dataTechnology
We have by far the largest independent R&D team in the industry
470-strong R&D 11-year focus on machine Paris- and California-based with
& product team learning that generates sales global sourcing of talent
14 | Copyright © 2016 CriteoTechnology
We are obsessed with technology leadership
Innovating Adding
on core variables
algorithms to engine
Always
A/B testing Click-
through
Variables
120+ &
more
Customized Enhancing Embedding
new ideas
Destination variables
Layout Display
Behavior
Category
Color
User’s
Activity integration Dynamic Cross-device
25,000 Conversion Language Repetition
Viewed
products Engagement
offline tests in 2014 5 variables
15 variables
Publishers
Ratings
Button
to publishers Creative Graph
Basket
size • Higher Engine
150,000+ Scalable performance
in 2015 Cost 120+ across all devices and • Attribution for
of sales inventory, in particular cross-device
variables sales
in Native
190,000 • Additional
in H1 2016 user reach
15 | Copyright © 2016 CriteoTechnology
Our solution works seamlessly across the consumer journey
Across …
Devices
Desktop Cross-Device
Laptop Tablet
Platforms Smartphone
Android Others
Marketing Channels
IOS
Web E-mail
Publisher Ecosystems
Apps Native
Social
Open Web
16 | Copyright © 2016 CriteoTechnology
Privacy by design: trust is a core business principle
No
P. I. I.* Criteo was first with ad choices
and cookie notification on Safari
A user-friendly privacy policy
provides transparency to our methods
Our Global Privacy team is embedded
Transparency
within the Product organization
Every product and feature is tested for
privacy and security prior to launch
We do not store or process data that
Control can be used to directly identify a consumer
17 | Copyright © 2016 Criteo * P.I.I. stands for Personally Identifiable InformationPerformance
The whole company is focused on measurable performance
2,000+ employees focus on client sales as the only metric of success
Established
post-click Client Service Teams
attribution
Account Strategy
CPC Continuous
model tracking
of sales Technical Solutions
Maximize
Clients Sales Creative Services
Transparent
performance Business Intelligence
information Constant
through optimization
24/7 client of campaigns
interface Central Sales
18 | Copyright © 2016 CriteoPerformance
As a result, we drive increasing sales for clients
Existing live clients’
Revenue ex-TAC1 +35% +40% +52% +32%
Q2 2016
Q2 2015
$22bn
Client post-click sales
over 12 months2
Q2 2013
Q2 2014
$15bn
$10bn
$6bn
19 | Copyright © 2016 Criteo
1) Year-over-year growth in Revenue ex-TAC from existing live clients is at constant currency
2) Clients post-click sales are calculates over the 12 months ending June 30 of each of 2013, 2014, 2015 and 2016;Scale
Our large-scale infrastructure supports our performance
High-Performance Computing
Largest 31,500 102,000 terabytes 26 terabytes
Hadoop Cluster processing cores total storage additional data every day
in Europe
Engine “model” recomputes every hour
Real-Time Stack
Complete Huge distributed Engine decisions in a
end-to-end integrated data store few ms, based on
ad serving solution real-time data
20 | Copyright © 2016 CriteoScale
We have built large-scale networks
2nd largest
global user network*
Powerful
12,000 scale &
advertisers** Machine-learning network effects
technology
17,000+
publishers**
21 | Copyright © 2016 Criteo * comScore – Unique Monthly Users – January 2016 – Desktop Only
** As of June 30, 2016Global
We have a truly global footprint
90 countries covered 31 offices in 19 countries 77 nationalities*
Amsterdam Stockholm
2011 2010
Toronto London Grenoble
2015 2008 2014 Moscow
2014
Chicago Paris Munich Seoul
2012 Boston 2005 2010 2010
San Francisco 2012 Milan Istanbul Beijing
2014 Madrid 2012 2015
2013
Tokyo
New York 2014
Palo Alto 2011 Barcelona 2011
2009 2014 Shanghai Osaka
Miami Dubai
2015 2016 2014
Los Angeles 2015
2015 New Delhi
2016
Singapore
2013
São Paulo Sydney
2011 2011
22 | Copyright © 2016 Criteo
* EmployeesGlobal
One solution for global companies
35% of Revenue ex-TAC from On average, multi-market
advertisers running campaigns
advertisers are live in 5 countries
in more than one country1
51 46 44 34
32 32 32 29
20 15 14 12
23 | Copyright © 2016 Criteo 1) Over the 12 months ending June 30, 2016 Number of live countries as of June 30, 2016So what is the
road ahead?
We plan to continue to
• Build our core
business
• Invest in new
growth areasWe have powerful drivers of future growth for our core business
Expand our Increase our
1 client base 2 value to clients
• Expand global presence • Enhance core technology
in particular in APAC, LatAm and MEA (customer targets, universal catalog, kinetic
design, smart header bidding…)
• Grow midmarket global penetration • Leverage our cross-device graph
(offer user graph as-a-service to advertisers)
• Broaden inventory supply
(mobile, social and native)
25 | Copyright © 2016 CriteoAnd we continue to invest into new growth areas focused on performance
The foundation of all our new product investments is
the use of rich data sets on a real-time basis to drive performance
Scale allows pooled assets to drive performance in ways that were not possible before
Marketing
New channels
Channels Search Video Offline
Customer Prospecting
Acquisition marketing
Lifecycle App Install
New verticals looking for performance
Verticals
for products sold online and offline
Manufacturers
26 | Copyright © 2016 CriteoWe are building the world’s performance marketing platform
Advertisers
Advertisers The World’s Performance Marketing Platform Consumers
Retail, Travel
Manufacturers
& Classifieds
Prospecting Display
Email
App Installs Search
Video
Remarketing
Offline
Cross Device Graph
27 | Copyright © 2016 Criteo What we have In developmentWe have a large opportunity ahead of us
We can address a $25bn net market opportunity
2019 Estimated Net Market Opportunity
Revenue ex-TAC basis
$9bn $25bn
Acquisition
Marketing
$6bn
Search Total
in Retail Net Market
$10bn Opportunity
Core
29 | Copyright © 2016 CriteoOur core market opportunity is massive
Market data
• 2019 Retail & Travel ecommerce $4,300bn1
2019 Estimated
Net Market Opportunity
Criteo assumptions2 in Core Business:
• Criteo share of sales (uncapped clients) 10%
$10bn
• Average ROI (uncapped clients) 18x Revenue ex-TAC
• Revenue ex-TAC margin 40%
1) Source; eMarketer, 2016;
30 | Copyright © 2016 Criteo 2) Source: Internal Criteo projections based on current performance for uncapped clients (Criteo share of sales and average ROI) and current
Revenue ex-TAC marginA product for retail in search can open a meaningful new opportunity
Market data1
• 2019 Search ad spend $126bn
2019 Estimated
• Retail share of Search ad spend 30% Net Market Opportunity
in Search:
Criteo assumptions2
$6bn
• Criteo impact on clients sales 20%-40%
Revenue ex-TAC
• % of ad spend captured by Criteo 10%-20%
31 | Copyright © 2016 Criteo 1) Source: eMarketer, March 2016; Adobe, Feb. 2016;
2) Internal Criteo assumptionsNew products in acquisition marketing can bring significant opportunity
Market data1
• 2019 Ad Spend on Display ex. Video $88bn
2019 Estimated
Net Market Opportunity
in Acquisition Marketing:
Criteo assumptions2
• Share of Acquisition Marketing* in Display 25% $9bn
Revenue ex-TAC
• Revenue ex-TAC margin 40%
* Customer Prospecting, App installs, Manufacturer spend
32 | Copyright © 2016 Criteo 1) Source: Zenith Optimedia, March 2016;
2) Internal Criteo (Share of acquisition marketing, Revenue ex-Tac Margin)We have exciting additional opportunities
Video Offline
33 | Copyright © 2016 CriteoOur DNA, strategy and proven execution will make us win
Technology
Performance
DNA
Scale
Global
Marketing Channels Customer Lifecycle Verticals
Search
Prospecting
Sustainable
Strategy
Offline Video
App Installs success
Manufacturers
Large-scale cross-device graph
Successful Proven record Consistently
Seasoned
Execution of growing exceeding
leadership team
core business expectations
34 | Copyright © 2016 CriteoThe World’s Performance Marketing Platform
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