THE LEADING INTEGRATED SOCIAL MEDIA COMPANY
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THE LEADING INTEGRATED SOCIAL MEDIA COMPANY
The content of the following slides is for information purposes only and does not constitute investment advice or other
recommendations pursuant to the German Securities Trading Act by The Social Chain AG or any of its affiliated companies. The
information provided cannot replace investment advice.
The information contained herein is not to be construed as an assurance of possible price developments and should not be
construed as a request to enter into a transaction. The information contained herein does not constitute an offer to sell or the
solicitation of an offer to sell securities or rights, or a solicitation to trade in securities or rights.
Accordingly, The Social Chain AG, its management, employees, advisors and affiliated companies make no representations or
commitments as to the accuracy, completeness or correctness of the information or opinions contained herein. We assume no
liability for direct or indirect damages caused by and/or in connection with the distribution and/or use of this document. The
statements correspond to the status at the time of the preparation of this document. They may become obsolete due to future
developments without the document being changed.
MANAGEMENT AND PRESENTING TEAM
–1
Wanja S. Oberhof Dr. Georg Kofler Holger Hansen
CEO Chairman COO
→ 15 years as entrepreneur → 30 years as entrepreneur → 20 years as entrepreneur
→ Founder of Lumaland → Founder & CEO of ProSieben → Founder of Social Chain Group
→ Founder of BridgeMaker, → CEO of Premiere → CEO of Leifeld
WAOW, newscase, Helix
THE INTEGRATED SOCIAL MEDIA COMPANY WITH AN
EXTENSIVE REACH AND MULTIPLE REVENUE STREAMS
198 million monthly
80 million 1.8 billion 2.2 billion
unique views on
followers monthly video views* monthly reach**
Facebook***
–2
~35% ~65%
Social Media Social Commerce & Experiences
€70M+ 65%+ 20%+ €130M+ 55%+ 54%
Long-term EBIT Sales through own
2020E Revenue % of US Revenue 2020E Revenue Gross margin
margin potential shops
30%+ 55%+ 6,5%
SOCIAL CHAIN’S MULTIPLE REVENUE STREAMS
Social
Social
Commerce &
Media –3
Experiences
Customer Media Consultancy On- &Offline Direct to Consumer
Acquisition Sales Services Events Brands
2020E Revenue €35M €10M €25M €20M €110M
GLOBAL SOCIAL MEDIA MARKETING SERVICES
REVENUE DRIVERS
Consultancy Influencer Content Media Data Technology
Services Marketing Production Sales & Insights Innovation
GLOBAL AGENCY HOUSE
Servicing the World‘s Leading Brands
“Most talked about company in social –4
media industry for 3 years in a row.”
— Huffington Post
“Social media
illuminati.”
— Huffington Post €25M+ Revenue (‘20E)
€1M+ EBIT (‘20E)
10% yoy growth (‘20E)
80%+ Client retention
20%+ Long-term EBIT
margin potential
SHOWCASE
RESULTS
“‘Boohoo has been able to halve
the amount it spends on
BACKGROUND marketing over the past five years,
because of this shift to social
• Social Chain created a foundation of media’ says Mr. Stevenson [retail
online social media marketing for analyst at Peel Hunt].”
Boohoo in 2016
“Relatively speaking, it has a far
• Boohoo since moved all social media more engaged social media base
marketing infrastructure created by than many other retailers – and it
Social Chain in-house can use digital as a call to arms.” –5
• Social Chain is currently working with
Boohoo on TikTok marketing Boohoo – Share Price
campaigns (in £)
5,00
4,00
3,00
2,00
1,00
Social Chain
Partnership
0,00
2014 2015 2016 2017 2018 2019 2020
CASE STUDY
RESULTS
EXPANDED
Network To Direct Site Buys,
GDN, Yahoo, Native
Developed strategy
500 / day –6
Orders on Facebook
for double targeted
demographic for
both
female and male
Analyzed previous
campaign data:
327%
Gross Revenue
CPC and CTR
Increase
No success with Initial Facebook
e-mail, search, testing
Facebook, and
display
€35M+ Revenue (‘20E)
€3.5M+ EBIT (‘20E)
20% yoy growth (‘20E)
Challenge A4D Solutions
20%+ Long-term EBIT
margin potential
Transaction in closing.
SOCIAL COMMERCE AND EXPERIENCES OVERVIEW
Revenue Drivers Social Commerce Social Events
Creating the most talked-about conventions and
festivals on social and traditional media
Well-being Food / Nutrition First to showcase the power of connecting brands
with social communities in the real world
Direct to Consumer Brands
39% 24% Producing huge engagement among a highly
€110M+ Revenue (‘20E) marketable target group
€8M+ EBIT (‘20E)
20% yoy growth (‘20E)
55%+ Gross margin (‘20E)
+ –7
Beauty Fitness Other
21% 14% 2%
On- & Offline Events
€20M+ Revenue (‘20E)
COVID-19 breakeven
20%+ Long-term EBIT margin
potential
SHOWCASE
+ + + +
Deep Vertical Bulk Technological Healthy, Long- Social-First
Integration Packaging Leadership Lasting Food Brand
COMPETITIVE ADVANTAGE
81% of the marketing
budget is spent on
influencers
• Highly engaged community
• Super-efficient: handled by a
single student
Social-First Brand
• Authentic brand experience –8
• Ability to quickly test and
launch new products
Sales first
week after
2t launch
1k pcs 1t
€15M+ Revenue (‘20E)
€0.5M+ EBIT (‘20E) Breadbox Coconut Water Sayer Dates
300% Growth (‘20E)
15%+ Long-term EBIT
margin potentialSHOWCASE HISTORY
• Started in 2010
• €25M+ of venture capital investment
• Acquired by Social Chain AG in Dec-
2019
• First profitable month was Jan-2020
• Guidance for FY2021:
• Revenue: €20M+
• EBITDA: €3M+
–9
€10M+ Revenue (‘20E)
€1M+ EBIT (‘20E)
60%+ yoy growth (‘20E)
20%+ Long-term EBIT
margin potentialSHOWCASE Publishing Revenue
Highly targeted media
sales across own
channels
Ticket Sales
Sold out audiences
>30,000 fans p.a.
>EUR 16 m profitable revenue
Product Sales – 10
Collection of own beauty
products
>75,000 pieces sold in 3 months
Data Sales
Marketing of deep
insights to brand
partners
€16M+ Revenue (‘20E)
1bn+ Media impressions
Sponsorships
20%+ Long-term EBIT Exclusive partnership with dm
margin potential and sold out brand colabsHOW WE BUILD AND SCALE SOCIAL MEDIA BRANDS
Inspired
by Social Media Social Listening Audience Brand Trend Cultural Transaction
Data Insights Data Data Insights Data
– 11
Driven Awareness
Repeat Visibility
& Engagement
Conversation /
Sales
Retargeting
by Social Media
Loved
by Social Media Shareability / Community /
Conversational AdvocacyKEY PILLARS OF THE SOCIAL CHAIN STORY
Large and Growing Addressable Markets
1
Unique Integrated Business Model with Valuable Networking Effects
2
Established Social Media Channels with Vast Reach…
3
…Attracting Leading Third Party Brands to the Ecosystem
4
– 12
High Quality Portfolio of Own Brands
5
Self-Enforcing Virtuous Circle of Three-Sided Marketplace…
6
…Enriched by Proprietary Technology Platform, Generating Valuable Data Driven Insights
7
High Organic Top-Line Growth with Strong Unit Economics…
8
…Underpinned by M&A Strategy with Strong Track Record…
9
…And Multiple Levers of Future Growth
101 LARGE AND GROWING ADDRESSABLE MARKETS
Media Social Commerce & Experiences E-commerce
Social Media Advertising Market Size (€bn) Global Social Commerce Market (€bn) Strong Growth Potential for E-commerce
R R TAM
C AG C AG €3.0tr 2018A*
7-23 .9% 7-21 .6%
1 13 1 37
149
113
38
52 – 13
SAM
€500bn 2018A**
2017 2023
Disposable income Use of social media
Revenue
€270m 2025E***
3bn 25% +33% Mobile internet users
Trusted
shopping experience
Revenue
People on social Media time Growth in time Market Share by Region €110m 2020E****
media platforms spent on spent on social
social media media platforms 43% 29% 28%
Immediate Interactive
Cheaper Pervasive
APAC Americas EMEA
Note: US, UK, Germany, Japan, China
* Total worldwide revenue for e-commerce
** Total revenue for ecommerce in North America and Europe for Fashion, Electronics & Media, Furniture & Appliances and Food & personal care verticals
*** E-commerce revenue 2025E assuming constant growth at 20%
*** Guidance 2020 e-commerce revenue
*2 UNIQUE INTEGRATED BUSINESS MODEL WITH VALUABLE
NETWORKING EFFECTS
SOCIAL COMMERCE
SOCIAL MEDIA
& EXPERIENCES
80 million >50
followers own brands
20 15
owned social media channels DTC brands with focus on Sleep,
Nutrition/Food and Beauty
1.8 billion – 14
monthly video views* >3,000
private label products
2.2 billion
monthly reach** Events and conventions with
>25,000
198 million visitors p.a.
monthly unique views on Facebook,
most viewed media in the US, UK
and Germany*** Distribution via own proprietary online
stores, Amazon and 3rd party online retailers
TURNING REACH… …INTO SALES
* Source: Tubular Labs, Average of Jan-Jul 2019 ** Source: Socialbakers, Average of Jan-Jul 2019 *** Source: Tubular (Beta), US & UK & D, Jul 20193 ESTABLISHED SOCIAL MEDIA CHANNELS WITH
VAST REACH…
Broad Portfolio of Established Online and Offline Channels, Providing Access to Various Consumer Groups
à Europe’s largest à One of the à Largest unofficial à Over 3m followers à One of the UK’s à World’s biggest à World’s biggest à Most viewed and
beauty festival world’s biggest Manchester in the EU and US biggest social- gaming social-first engaged social- – 15
digital sports United fan with high first food community on student first music
à >250 top
publishers cross- channel in the interaction channels Facebook community publisher in the
influencers as
platform world world
ambassadors à >90m media à >14m+ followers à >6m+ followers à >10m+ followers
à >14m+ followers reach
à >100 top brand
partners
Large global influencer network providing access to a
massive number of consumers
→ >100 influencers and >10,000 micro influencers
→ Global reach focused around the US, UK and Europe
→ Exclusive channel marketing agreements
→ ~20% net share take from influencers as revenue Jay & Arya Shirin David Stefanie Giesinger Julia Beautx Ischtar Isik Die Lochis
(5m+ follower) (5m+ follower) (5m+ follower) (4m+ follower) (1m+ follower) (4 …ATTRACTING LEADING THIRD PARTY BRANDS TO THE
ECOSYSTEM
BENEFITS FOR THIRD PARTY BRANDS
Access to massive reach of >80M followers
– 16
Bespoke campaigning
Proprietary matching model of influencers and
brands
Access to social events
Above average conversion rates of up to 10%
Access to Links data5 HIGH QUALITY PORTFOLIO OF OWN BRANDS
Large and Highly Diverse Portfolio of Own Brands Serving a Wide Range of Consumer Needs
>15 100% >50% >3,000
own brands of commerce sales of own brand sales via private label products
from own brands own channels
Porridge, done
The global Innovative hair – 17
differently: simple and Expertly-formulated,
e-commerce network accessories and "pony
delicious oat recipes, high-performance
and German online puffin" for a voluminous,
made from all-natural skincare for the confident,
market leader for home perfect ponytail, styled
ingredients and modern man.
and living accessories. in an instant.
superfoods.
High-quality, fresh and Contemporary furniture Mattresses and bedroom
An online platform for
natural food and and boxspring beds, accessories for an
creative experiences.
superfoods, sourced and crafted for modern individually-tailored and
We believe everyone is
sold directly to the interiors. supremely comfortable
an artist.
customer. sleep.
Baby care products,
An energetic, dynamic Innovative direct-to-
baby spas and course High-quality beds,
sports brand, making consumer brand for
for babies and parents. accessories and more for
yoga and fitness fun, easy home and living
Made with love and our furry friends.
and affordable. accessories.
care.6 SELF-ENFORCING VIRTUOUS CIRCLE OF THREE-
SIDED MARKETPLACE…
Symbiotic Relationship between Customers, Channels and Brands Creating Value for all Parties across Own Digital Channels
>80m Marketing
followers
Engaging Features & Services
>100
Influencer
CUSTOMERS/ CHANNELS / channels in
1.8bn FOLLOWERS INFLUENCERS
video views User Generated Content
per month 25
countries
– 18
Events and
conventions with Circularity & Targeted
Loyalty Marketing 2.2bn
>25,000 monthly
visitors p.a. reach
Pulse on
Rich Product Trends
Assortment
OWN AND
THIRD
PARTY
BRANDS
>15 >15,000
own brands SKUs7 …ENRICHED BY PROPRIETARY TECHNOLOGY PLATFORM,
GENERATING VALUABLE DATA DRIVEN INSIGHTS
Offline Events Data Social Media Data
→ Real audience demographics → Targeting
→ Product reviews → Engagement
→ Comments
→ Sharing
– 19
Owned Webshops LINKS Owned Media Data
→ Purchase behavior data → Insights to brand partners
→ Campaign ROI → Target group demographics
→ Conversion rates → Tracking and testing trends
→ Return rates
Influencer Network External Commerce Data
→ Tracking and monitoring social → Marketplace data
media campaigns → External product data
→ Conversion rates8 HIGH ORGANIC TOP-LINE GROWTH WITH STRONG UNIT
ECONOMICS…
REVENUE
PROVEN CORONA WINNER 100
→ Expecting €200m revenues (organic
growth) and >€8m in EBITDA for 2020 200
156
→ M&A target pipeline for additional
€100m revenue in 2020 90
10 40
2016 2017 2018 2019 2020 – 20
Organic M&A related
STRONG UNIT ECONOMICS
EBITDA
55%+ Gross Margin in
Commerce Business 89 …UNDERPINNED BY M&A STRATEGY WITH STRONG
TRACK RECORD…
Strong International Expansion Opportunity… … Supported by Impressive Track Record of Acquisitions
Significant Value Creation
Germany UK US
Smart target selection through M&A
82% 12% 6%
EV / Revenue
+
Disciplined approach
to capital allocation
~1.0x
+
Lean structure – 21
facilitating integration At acquisition Current
=
Increased presence Large synergy
in existing markets potential
Expansion across Diversification of
new markets revenue
Social Commerce Social Media
Since inception, SCG has continued to demonstrate excellent and proven
SCG Presence
integration capabilities, allowing it to further pursue organic M&A opportunities and
accelerate its geographic expansion10 … AND MULTIPLE LEVERS OF FUTURE GROWTH
Various Opportunities to Drive Growth – Organically as well as Inorganically
Grow portfolio
of own
+ brands
Expand product
portfolio of
existing brands
–
Onboard 22
more third
party brands
Grow Further monetize
Acquire more internationally data generated by
media content with focus LINKS platform
on the USEXPANSION INTO ASIA VIA 51% JOINT VENTURE WITH JASSEN,
OWNER OF OJESH BRAND
STRATEGIC RATIONALE
- On 24-Jun-2020 Social Chain entered the
Asian market through a JV with Shenzhen
Yasen Jinyuan Technology Co. and
Jassen GmbH
- The JV will give Social Chain access to a
network of 40,000 resellers on WeChat
with social media reach of 200 million
followers in Asia –
- Resellers reach their end customers
24
via Sina Weibo, the leading
microblogger platform in China with
more than 500 million users
- Multi-level-marketing business
- Strategic partnership for development,
marketing and distribution of high-quality
beauty products in Asia, America and
Europe
- Strengthening social commerce expertise
through innovative community sales
channelsGUIDANCE 2020
€200m Revenue forecasted
2020 first year full year of consolidated group financials
Strong improvement in profitability –
25
Strong double-digit organic topline growth despite Covid-19 €8m EBITDA
tailwind for social media & commerce
International business acceleration with US focus
Substantial acquisition pipeline More acquisitions in the pipeline:
up to €100m identified additional
revenuepotentialYou can also read
