POWERING DIGITAL ADVERTISING - German Equity Forum Fyber N.V. 28 November 2017
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POWERING DIGITAL
ADVERTISING
German Equity Forum
Fyber N.V.
28 November 2017
THE FYBER GROUP
15 140
Publicly Traded
LONDON
BERLIN 15
BEIJING
FBEN Frankfurt
45 25
SAN
FRANCISCO
NEW YORK
80
TEL AVIV
6 Offices
Tel Aviv | New York | San Francisco
London | Berlin | Beijing
€240M €218m
€240m
Projected revenue in 2017
€129m
300+ 40%
Employees of employees in R&D & Product 2015 2016 2017E
Gross Revenue
2
FYBER DEVELOPS A NEXT GENERATION, MOBILE-FIRST
PROGRAMMATIC MONETIZATION PLATFORM
Publishers Advertisers
FOCUSED ON ADDRESSING …THROUGH PROPRIETARY, …OFFERING SUBSTANTIAL VALUE
PUBLISHERS’ NEEDS… INNOVATIVE TECHNOLOGY… TO OUR DEMAND PARTNERS
Making fragmented Comprehensive Making global
advertising market proprietary software, audience of over
accessible to publishers, designed with the 1.2bn users buyable
yield optimization publishers’ needs in mind for advertisers
3
01 MARKET OPPORTUNITY
4
AD SPEND HAS Worldwide Digital Ad Spend ($bn) US User Time Spent on Mobile (%)
BEEN
191 360 3hrs+ / day
STRONGLY
SHIFTING TO 24% -2%
MOBILE AND 56%
12%
IN-APP
76% +28%
44% 88%
2015 2020 2017
Mobile Desktop In-app Mobile web
VIDEO IS THE US Programmatic Video Ad Spend ($bn) US Digital Display Ad Spend ($bn)
FASTEST
13 27 55
GROWING AD
FORMAT, ALSO +32% 35%
16% -1%
5
POWERING
PROGRAMMATIC
84% +27%
3 8 +61% 65%
2
1
2015 2019 2015 2019
Source: eMarketer, 2017; growth rates Mobile Desktop Programmatic Non-Programmatic
calculated as CAGR for 2015-2020 and
2015-2019 respectively
5
SIGNIFICANT
MARKET
$120B
Global mobile programmatic ad spend 2019
OPPORTUNITY
FOR Independent Ad
INDEPENDENT Tech Vendors
ADVERTISING
TECHNOLOGY 25% $30B
PUBLISHERS 75%
NEED
Owned &
INDEPENDENT Operated
The $30B addressable
market will be
PROVIDERS TO Platforms dominated by 5-7 large
COUNTER independent players
MARKET
IMBALANCE
Source: Estimations based on eMarketer 2017 numbers 6
02 COMPANY OVERVIEW & LATEST NEWS
7
COMPLEMENTARY TECHNOLOGY, DEMAND &
PUBLISHER VERTICALS
Leading mediation platform
for gaming developers Expanded direct, SDK-
SDK implemented by implemented publisher
thousands of publishers relationships
Incentivized ad units Ability to monetize display
(Rewarded video, Offer wall) and interstitial video units
In-app mobile exchange
Cross-screen video New app verticals (news,
technology (desktop, social, utilities)
mobile web, in-app) New demand sources
Proprietary video player (DSP, brand campaigns)
Premium video demand Advanced audience
In-house Ad server RTB segmentation capabilities
8
EXTENSIVE DIRECT PUBLISHER RELATIONSHIPS
1.2B 180spread
across
coming
from
10K passing
35
MAUs Countries Apps with Data parameters/user
code-on-page (directly from SDK)
9
OVER 10,000 DIRECTLY INTEGRATED APPS,
Dania – fix formatting of the slide
ACROSS VERTICALS to fit the size of the page
Leading Utilities
Content Publishers App Developers
Line Kik Sega Rovio Entertainment
Hearst Huffington Post Talkatone MeetMe Sungy Mobile Baidu Pixelberry Studios Color Switch
TV Guide Daily Mail Text Me Pinger iHandy National Rail Ketchapp Gree
Social & Messaging Gaming
App Developers App Developers
ABC News Upday Axel Springer Ask FM Cheetah Mobile
10VAMP Video Ad Monetization Platform
REVENUE Dynamic configuration &
reporting with over 40
DESK data parameters
VIDEO Full video support including
SUITE proprietary formats
AUDIENCE Robust insights about user
VAULT engagement & characteristics
11DIRECT ‘KEEPING IT CLEAN’ INITIATIVE
PUBLISHER Moving away from aggregated supply - closing down specific partners
INTEGRATIONS Focusing primarily on further expanding direct publisher integrations
CREATING by offering advanced trading tools, ad formats and user data
capabilities to publishers
MAXIMUM Short-term revenue impact – prerequisite for long-term growth
VALUE FOR
PUBLISHERS & PROVIDING A QUALITY MARKETPLACE
ADVERTISERS 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
ABC News Daily Mail Huffington Post Line Text Me Baidu Pinger MeetMe Pandora Glu Games Color Switch Cheetah Mobile03 FINANCIALS OVERVIEW
13KEY FINANCIALS
PRO-FORMA FINANCIALS Q3 2017 YTD GROSS REVENUE DEVELOPMENT
Q1-Q3 Q1-Q3 Q3 Q3 Year €240.0m
In €m
2017 2016 2017 2016 2016
€218.1m
Revenues 177.2 147.1 57.5 52.3 218.1
Revenue share
(125.0) (103.3) (40.3) (37.3) (155.7)
to third parties
Gross Margin 52.2 43.8 17.2 15.0 62.4 €129.1m
Gross Margin % 29.5% 29.8% 29.9% 28.7% 28.6%
Personnel costs (32.9) (29.7) (10.9) (10.6) (41.0) €64.0m
€43.3m
IT Cost (13.9) (7.4) (4.7) (3.0) (11.6)
Other operating
(12.7) (17.8) (3.7) (7.2) (13.8)
expenses, net
2013 2014 2015 2016 2017E
EBITDA (Adj) (3.4) (3.7) 0.4 (1.6) (4.6)
EBITDA Margin (1.9%) (2.5%) 0.8% (3.0%) (2.1%)
Stable topline development through strong market
positioning
At an average gross margin of 30% from 2017E-
Restated: Certain amounts of 2016 financials shown here do not correspond to the 2016 financial statements 2020E
and reflect adjustments made (Please refer to note 2 of the Interim Financial Statements for Q3 2017).
14CLEAR ROAD
TO PROFITABILITY
€15.0m
-€1.9m to €0.1m
-€5.8m
TARGET 2020
Gross revenue run rate of -€12.1m
€600 million
2015 2016 2017E 2018E
EBITDA margin between 8%
and 10%
15FOCUSING ON THE AREAS OF
FASTEST MARKET GROWTH
PROGRAMMATIC MOBILE
67% of revenues from programmatic 73% of revenues from mobile
45%+ growth in Q1-Q3 2017 YoY 14%+ growth in Q1-Q3 2017 YoY
11%
23% 23% 27%
33%
40% 44%
66%
89%
77% 77% 73%
67%
60% 56%
34%
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017 FY2015
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017
Programmatic Non-Programmatic Mobile Desktop
16FOCUSING ON THE AREAS OF
FASTEST MARKET GROWTH
VIDEO APAC
43% of revenues from video 27% of revenues from APAC
20% growth in Q1-Q3 2017 YoY 30% growth in Q3 2017 QoQ
5% 4% 2%
11%
21% 27%
57% 57% 57%
74% 37%
30% 28%
43% 43% 43% 48% 45% 43%
26%
FY2015 FY2016 Q1-Q3 2016 Q1-Q3 2017 Q12017
Q1 2017 Q2 2017 Q3 2017
Video Display NA EMEA APAC RoW
Gross revenue based on publisher location
1704 OUTLOOK
18NEW, UNIFIED
FYBER BRAND
WILL BE
LAUNCHED IN
RTB Q1 2018
19 EXTENSIVE DIRECT PUBLISHER
RELATIONSHIPS
Our technology is trusted by more than 10,000 app-
developers who integrated our code into their apps
DATA POWERHOUSE
Extensive and robust data covering 1B+ user-base,
enabling both buyers and sellers to automate and
optimize transactions
MOBILE-FIRST PROGRAMMATIC
PLATFORM
Introducing 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
POINTS OF Extensive video tools that support industry standard
FOCUS AND formats while offering proprietary, innovative video
ad-units and technology
DIFFERENTIATION 20TECHNOLOGY THAT ADDRESSES THE
INDUSTRY’S MOST BURNING NEEDS
POWERFUL EXCHANGE
First to successfully combine Programmatic and Direct Sales
(User Acquisition, Direct Response & Brand campaigns)
UNIFIED AUCTION
Auctioning multiple types of demand partners in real time
(Ad Networks, Private Deals, Programmatic)
SEE THROUGH PLATFORM
All transactions carried out via fair auction - Visible to all
partners on our transparent, granular reporting interface
DATA-DRIVEN AUDIENCE SEGMENTATION
Enable both publishers and demand partners to package &
target audiences based on the parameters they care about
INVENTORY MANAGEMENT TOOLS THAT
OUR OPTIMIZE REVENUE & USER EXPERIENCE
Empower publishers to engage with users based on their
GAME PLAN tolerance to ads and monetization potential
21THANK YOU!
05 APPENDIX
23WE ARE A LEADING PROGRAMMATIC MONETIZATION
PLATFORM FOR MOBILE & VIDEO
INVESTMENT HIGHLIGHTS KEY METRICS
MASSIVE GLOBAL REACH AND DATA CAPABILITIES Monthly Unique Users 1.2bn
1 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 Gross Revenues H2 2017E €120m+
MOBILE IN-APP FIRST, YET CROSS-SCREEN
EBITDA H2 2017E €2m - €4m
2 Focusing on the fastest growing markets of mobile, video and
programmatic advertising; yet offering full stack across in-app, mobile
web and desktop
EBITDA 2018E €15m+
COMPREHENSIVE PUBLISHER SOLUTION
3 Including ad exchanges, ad serving, mediation, publisher yield optimization
tools; Supporting all ad formats incl. innovative video ad units; Serving all % Revenues from Programmatic* 67%
publisher verticals from gaming app developers to ‘Comscore200’ publishers
% Revenues from Video* 43%
NEUTRAL ADVERTISING TECHNOLOGY
4 A 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 % Revenues from Mobile* 73%
*As per Q3 2017 YTD
24FYBER
MANAGEMENT
BOARD
Ziv Elul Dani Sztern Yaron Zaltsman Crid Yu
CEO Deputy CEO CFO COO
Founder and Brings over 20 Brings extensive Brings 15+ years
CEO of years of diverse knowledge of experience in
Inneractive; experience at working within digital media,
15+ years of large public and public companies, with a focus on
industry & private worldwide, and mobile
management companies, specifically on the advertising, with
experience, mainly in the Frankfurt Stock companies such
MB member of software Exchange; CFO of as Google and
Young industry, as both Ado Properties, InMobi, and
Presidents’ COO and CFO, previously Deloitte, previously
Organization including Adgar, Arthur Andersen McKinsey &
Rabintex, Company
Identify
Software
25FINANCIALS
PRO-FORMA INTERIM STATEMENT OF PROFIT OR LOSS
In €m Q1-Q3 2017 Q1-Q3 2016 Q3 2017 Q3 2016 Year 2016
Revenue 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)
26FINANCIALS
PRO-FORMA INTERIM STATEMENT OF FINANCIAL POSITION
In €k 30 SEP 2017 31 DEC 2016 In €k 30 SEP 2017 31 DEC 2016
Non-current Assets 247,125 259,434 Equity 99,940 120,444
Goodwill 211,391 216,951 Issued Capital 11,453 11,453
Other Intangible Assets 33,691 40,039 Share Premium 184,812 184,812
Property and Equipment 1,333 1,940 Treasury Shares (4,745) (5,049)
Non-current Financial Assets 710 504 Other Capital Reserves 23,908 17,518
Legal Reserve 4,259 4,259
Current Assets 96,958 106,193 (115,228)
Accumulated Deficit (96,093)
Inventories 152 271
Other Components of Equity (4,519) 3,544
Trade and other Receivables 70,186 63,539
Equity attributable to Shareholders 99,940 120,444
Other Current Fin. Assets 10,654 16,292
Other Current Assets 1,510 1,109 Non-current Liabilities 144,196 150,550
14,456 Long-term Employee Benefits Liabilities 407 429
Cash and Cash Equivalents 24,982
Long-term Borrowings 131,558 136,642
Total Assets 344,083 365,627 Deferred Tax Liabilities 4,166 4,054
Other non-current Liabilities 8,065 9,425
Current Liabilities 99,947 94,633
Trade 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 244,143 245,183
Total Equity and Liabilities 344,083 365,627Key Share Data
Issuer Fyber N.V.
Ticker Symbol FBEN
ISIN NL0012377394
Frankfurt Stock Exchange, Prime
Market
Standard
Currency Euro
Number of shares 114,533,333
52 weeks high / -low 2.65 / 0.57
% Voting
Share Structure Shareholder registered above 3%
Former Fyber Shareholders
Rights
20%
(P+P Pöllath und Partners)
Abu Dhabi Securities 18%
Altera Absolute Global Master Fund 6%
FIL Limited (FIL Investments International,
3%
FIL Pension Management)
28FYBER N.V. Contact ir@fyber.com +49 30 609 855 555 Office Address Johannisstraße 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. Our mission is to fuel the creation of quality content by empowering digital publishers and app developers to unlock the true value of their advertising properties through advanced technologies, innovative ad formats and data-driven decision-making. Fyber’s technology platform provides an open-access platform for both digital advertisers and publishers, enabling cross-device advertising with a global reach of more than 1.2 billion unique monthly users. Fyber was founded in 2010 as RNTS Media and has offices in Berlin, Tel Aviv, New York, San Francisco, London and Beijing. The Company employs more than 300 people globally and is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol ‘FBEN’. he fast-growing companies which comprise Fyber Group received recognition and awards in 2016, including: Deloitte Technology Fast 500™ 2016 EMEA company; was placed in Gruenderszene’s 29 Top 50 growth ranking 2016, and won the Golden Bridge Gold Award 2016.
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