Keynote by Daniel Raab and Claas Van Delden, Managing Directors of 7Commerce at the NOAH 2015 Conference in London, Old Billingsgate on the 12th of November 2015.
1. | Page 1| November, 2015 |
November 12, 2015
Claas van Delden and Daniel Raab
ProSiebenSat.1 Commerce GmbH
Keynote 7Commerce
NOAH London 2015
3. | Page 2| November, 2015 |
| Page 2| November, 2015 |
ProSiebenSat.1 further develops into a commerce powerhouse
2014
2013
2012
2011
2010
2015
2009
Our position today
Travel
Beauty &
Accessories
Online
Comparison
M4R/E deals
Ventures Strategic commerce verticals
>60
investments
14
Majority investments1)
1) incl. former Epic companies Valmano and Discavo
First M4R/E deals
4. | Page 3| November, 2015 |
| Page 3| November, 2015 |
We built a portfolio of market leading businesses via M&A
~EUR 500m investments in 2015 alone
Commerce portfolio
7Commerce
~ EUR 500m commerce investments
in 2015
#11)
#1
#2
#1
#1
1) Etraveli is the #1 flight player in the Nordics; Etraveli signed with envisaged closing in Q4 2015
7Travel
Beauty &
Accessories
Online
Comparison
Market position
5. | Page 4| November, 2015 | | Page 4| November, 2015 |
With more than 5.5m transactions – growing >2x as fast as market
Visits1) #Transactions1)
Total Transaction
Value1,2)
>250m
1) FY 2015 estimates; excl. 12Auto Group & Wetter.com; Note: “Pro forma” including Etraveli
2) Transaction value incl. annual revenue generated by service providers with customers referred by our assets (e.g. energy services, telco services)
>5.5m
>EUR
2.6bn
But how does it work?
6. | Page 5| November, 2015 | | Page 5| November, 2015 |
• Tech/mobile services
• Developer capacity
• Best practices & tools
• Mobile Xchange
developer meeting
• Ambassador system
(management skills for
growing business)
• Partnerships &
cross-selling with
portfolio companies
• Legal & Tax support
• HR/Recruiting
• Setup of
infrastructure
• Ad-hoc support
• Frame contracts
• Product/Marketing
(e.g. payment, affilia-
te, offline marketing)
• IT infrastructure
(e.g. server, MS
licenses, hardware)
• Carrier conditions
• Controlling,
Reporting
& Finance
• Definition of KPIs
• Setup of automated
reporting
• Cash management
• Sales optimization
• Procurement
• Ordering and
forecasting
• Vendor negotiations
(scorecard)
• Best-in-class
marketing to reach
local communities
• Elasticity-based
pricing
• SEO/SEA optimization
• CRM optimization
(e.g. personalization)
• Optimal media
relations (PR training)
• Creation of perfect
TV spot
• Optimization of spots
(CPV reduction via
TV analytics)
• Partnering
(WKZ deals)
• TV formats to
position brand (e.g.
Amorelie Love Lounge)
• International Media
Alliance to promote
business beyond
Germany
Key for success: Our playbook
1. TV expertise
2. Marketing
competence
3. Data analytics &
process excellence
4. Shared services &
negotiation
5. Tech & expert
network
playbook
Assessment after acquisition to set up action plan and ongoing support on demand
7. | Page 6| November, 2015 | | Page 6| November, 2015 |
Example: Average TV CPV in 2014
Strong TV performance
improvements throughout
2014
We develop our companies based on playbook levers
Example: Price tests and elasticity analysis
Identifying product
characteristics resulting
in high, medium,
low price elasticity
2. Marketing competence1. TV expertise
Example: Affiliate marketing insourcing
& bundling
Direct KAM with
state-of-the art
technology as well
as consolidation to
one strategic partner
3. Data analytics & process excellence
Example: Klarna contracts
Saving potentials due
to shared services
(e.g. legal) and negotiation,
e.g. payment frame
contracts
Example: Mobile expert network
Offer advice for new
developments and
cover short-term
development
bottlenecks via network
5. Tech & expert network4. Shared services & negotiation
8. | Page 7| November, 2015 | | Page 7| November, 2015 |
In Beauty & Accessories, our vertical approach drives operations
1) Revenue growth of Amorelie, Flaconi & Valmano Q3 2015 (consolidated) vs. Q3 2014 (not consolidated).
Sustainable business models
led by strong teams
7Commerce Playbook
to optimize business
TV power to drive traffic
+
+ Playbook
Q3 development supported by inter-cluster synergies
Q3 2015 vs. Q3 2014
Total
visits
Cost per
visit
+72%
-45%
More traffic at less cost
Q3 2015 vs. Q3 2014
-30%
Selection
(June)
Cost per
order
+15%
Lower cost and better
selection
Joint forces for growth
+178%
Vertical
revenue
growth1)
Example
9. | Page 8| November, 2015 | | Page 8| November, 2015 |
Our vertical approach creates synergies – and thus further value
1) Estimated for FY 2015, rec. EBITDA w/o TV airtime costs
Note: Etraveli signed with envisaged closing in Q4 2015
We generate more revenues and cost savings with inter- and
intra-vertical synergies compared to standalone businesses
Marketing excellence (CRM, SEO, SEA)
Shared services (e.g. HR, Finance, Legal)
Cross-unit data management
Joint WKZ initiatives (ad allowance)
Cross-vertical lead gen and traffic push
Example:
Travel vertical >25%
contribution to
revenue growth1)
>35%
contribution to rec.
EBITDA growth1)
15%
contribution to total
rec. EBITDA1)
10. | Page 9| November, 2015 | | Page 9| November, 2015 |
In future, we further leverage our Media Alliance to expand verticals
Strategic rationale
Access media of leading
European broadcasters
European Media Alliance
Increase deal flow among
media partners
Offer “Pan European deals” to
US/international imports
France
UK
Scandi., CEE
Poland
Turkey
Greece, Rom.,
Serb., Sl.
Benelux
& Finland
Spain
Italy
Media Alliance and
strategic partner
Next partner to join
New New
>250m
households
reach
New
12. Focus on Leading European Internet companies
Covering over 400 companies across 25
online verticals, a broad range of over 500
investors as well as 100+ online-focused
corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships
with potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading
investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A
experience
Routine execution of M&A and financing
transactions with sizes of several billion
euros
22 successfully completed NOAH Advisors
transactions underline successful transfer of
M&A competencies to the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for
excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures
align interests of clients and NOAH Advisors,
and demonstrate conviction to deliver top results
Creative deal solutions
September 2015 December 2014
September 2014October 2014
May 2014 February 2013
May 2012 April 2011
Sale of a 70% stake in
to
Exclusive Financial Advisor to
Drushim and its Shareholders
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to
Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2
and its Shareholders
Growth equity investment from
for a 30% stake alongside Softonic’s Founders
and Angel Investors at a valuation of €275m
Exclusive Financial Advisor to
Softonic and its shareholders
150 million growth equity investment from
for a 50% stake alongside Fotolia’s Founders and
Additional $150 million senior debt financing
Total $300 million investment
Financial Advisor to Fotolia and its Shareholders
have acquired a majority stake in
for $350m from
Exclusive Advisor to Summit Partners and TA Associates
Selected Completed
NOAH Transactions
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE
®