group plc august 2020 investor presentation 2020 interim ... · information or to update this...

Group plc

2020 Interim ResultsInvestor Presentation

August 2020

DISCLAIMER AND IMPORTANT NOTICE

The information contained in this document (“Presentation”) has been prepared by Brave Bison Group plc (the “Company”). The Company is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not been fully verified and is subject to material updating, revision and further verification and amendment without notice. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 (as amended) (“FSMA”) and therefore it is being provided for information purposes only.

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Brave Bison is a Media Group

for the New Era

Your Management Team

Oliver Green Philippa Norridge Theo Green Matt Law

Executive Chairman Chief Financial Officer Director of Growth Non-Executive Director

Tangent

University College London

MullenLowe Profero (part of IPG)

Albion Brand Communications

University of Oxford

Tangent

Brockton Capital (Private Equity)

Imperial College London

Outlier Ventures

Analog Folk

Tribal Worldwide

About Brave BisonA new chapter

We entertain, inform and inspire a global fanbase with

original social content created around their passions

A Brief History

Brave Bison (formerly known as Rightster) floats on AIM

Multiple CEOs and business models

Early success as social publisher and branded content studio

2013

2013-2018 2019 July 2019

Tangent buys 19% stake in Brave Bison from Woodford

Oliver Green joins Board as Chairman

December 2019

Philippa Norridge joins as Chief Financial Officer and Matt Law joins as NED

Oliver Green becomes Executive Chairman

Tangent increases stake twice, now totalling 27%

June 2020

We produce video content for our media brands.

This content is distributed through our network on social media and is watched by millions, sometimes billions of people.

Advertising is inserted into this content via programmatic exchanges, and we receive a commission on this revenue.

Our advertising business is high growth, low margin (for now) and highly scaleable.

Our creative and strategy teams work with clients directly, and through agencies, on social and digital-first campaigns.

Our services range in scope from influencer marketing to branded content.

We charge clients fees for services provided.

Our creative services business is high margin and cash generative.

AdvertisingCreative Services



BB Shareholder Presentation 2020

Our Differentiated Business Model

Our PartnersOur Clients

The Hook is a multiplatform youth entertainment brand enjoyed by an online community of more than 9 million global followers

We create and share only the freshest, funniest and most innovative content to entertain and inspire audiences all over the world

GLOBAL FOLLOWERS

9M+MONTHLY

VIEWS

75MMONTHLY

ENGAGEMENTS

1.2M

VTRND V Satisfying2.0m Subscribers

The most relaxing ASMR and oddly

satisfying videos on the planet.

VTRND V Fit330k Subscribers

The ultimate fitness routines, challenges and body

transformations. Be the best you can be.

Slick1.4m Subscribers

The world’s best hair stylists and groomers transform the

ordinary into the extraordinary.

Our Presence on Snap

World Chase Tag542k Subscribers

The best parkour athletes and Ninja Warrior

competitors from around the globe.

Interim ResultsSix months ended 30 June 2020



H1 2020 Results Summary

* This is EBITDA adjusted for restructuring costs, share based payments and IFRS 16 ((£0.4m) in 2020 prior to IFRS 16 adjustment)Small apparent errors due to rounding

Annualised cost savings of £1.1m made in H1, forecast EBITDA break-even for H2 2020

H1 2020 H1 2019

Revenue £5.5m £10.1

Advertising £4.6m £6.6m

Creative Services £1.0m £3.6m

Gross Profit £1.9m £3.4m

Advertising £1.2m £1.7m

Gross Margin 24% 27%

Creative Services £0.7m £1.7m

Gross Margin 70% 47%

Adjusted EBITDA* (£0.6m) £0.2m

Profit / (Loss) Before Tax (£1.4m) (£1.2m)

Loss Before Tax is inclusive of Restructuring Costs of: (£0.6m) (£0.4m)

● Reduction in revenue to £5.5 million (H1 2019: £10.1 million) and loss before tax of £1.4 million (H1 2019: £1.2 million) as the Group contended with the challenges of the COVID-19 pandemic

● Appropriate action has been taken swiftly, with annualised cost savings of £1.1 million implemented to date. One off restructuring costs of £0.6 million (H1 2019: £0.4 million) have been incurred

● EBITDA loss before restructuring costs of £0.4 million (H1 2019: £0.2 million profit).

● Improved outlook on the back of a better than anticipated recovery from June 2020, and given the cost savings the Group is now forecasting to be breakeven on an EBITDA basis in the second half of the year

● Cash balance as at 30 June 2020 of £2.1 million (30 June 2019: £3.7 million) and no borrowings



Financial Highlights

● Group is now led by a new management team and Board following the appointment of Oliver Green as Executive Chairman, Philippa Norridge as Chief Financial Officer and Matthew Law as Non-Executive Director

● Acquisition and successful integration of The Hook , one of the largest youth-focussed media groups with over 14 million followers across social media including almost 1 million followers on TikTok

● Significant client wins during the period, including Panasonic, World Dodgeball Federation, IMV Box, Media Star Maker and Viral Press

● Successful revenue diversification across social platforms with content now distributed across Snapchat, TikTok, Facebook, Instagram and YouTube



Operational Highlights

OutlookOur Strategy for Growth

Our Market Brave Bison’s Position

$520bn 2020 Global advertising market(1)

50% (and growing)

2020 Digital advertising share (it was 25% in 2014)(1)

We are a digital-first media group

-2.4% 2020 YoY change in digital advertising spend (it was -20.7% for traditional media)(1)

All our campaigns are social-led

33% 2018 % of all media time spent on mobile (it was 7% in 2010)(2)

All our media brands are mobile-first

70% Combined market share of Facebook and Google(2)

Facebook and YouTube are our biggest advertising partners

90% US 13-24 year olds reached by Snap(3) Snap is our fastest-growing content platform

$10bn Forecast influencer marketing spend for 2020 (it was $1.7bn in 2016)(4)

We are a partner of choice for influencer marketing campaigns in the UK and APAC




Going Where the Growth Is

(1) GroupM via Financial Times, (2) MoffettNathanson / Bond Capital / eMarketer via The Economist, (3) Snap, Inc, (4) Influencer Marketing Hub

(2)

(2)

https://www.ft.com/content/8bb5338e-d60a-4986-b0a0-6a604b67026b

https://www.economist.com/business/2020/06/27/the-advertising-business-is-becoming-less-cyclical-and-more-concentrated

We believe there is an opportunity for a Buy & Build strategy across the digital media landscape. Our focus is on three core areas, all of which complement our existing business:



What?● High-growth social publishers;● Engaged audiences with a cross-platform

approach;● Bonafide brands with multiple revenue

opportunities across commerce, subscription, sponsorship and events.

How Much?● 25%+ revenue growth;● Break-even, or break-even within 12

months● £5m to £15m purchase price

Buy & Build

Digital-First Services Content Production Media brands

What?● Profitable digital marketing agencies

with 8-12% operating margins;● Specific focus such as paid social,

influencer marketing, data, Amazon ads etc.;

● Ability to cross-sell and extend campaigns.

How Much?● Profits of £0.5m to £2.0m;● Buyable on 5-8x earnings;● Synergies on project teams and

overheads.

What?● Profitable video production companies

and rights libraries with content that can be repurposed for social platforms such as Facebook, Snap, YouTube, TikTok and Quibi;

● Existing creative and production infrastructure for Video on Demand (Netflix, Amazon, NowTV, Hulu) and Linear TV.

How Much?● Profits of £0.5m to £2.0m;● Buyable on 8-10x earnings;● Content libraries acquired significantly

below production cost

The high-growth nature of our market provides us will multiple opportunities for organic revenue growth. Some target areas are shown below:



Organic Revenue Growth

Advertising Growth Creative Services Growth

● Build on APAC success to launch comprehensive UK branded content offering

● Expand influencer marketing proposition

● Give brands access to original series commissions

● Improve performance and conversion-led offering

● Increase quality and quantity of our content output to restore Facebook revenues

● Commission new Snap shows

● Invest in content and product for our recently acquired web offering

● Accelerate output on next-generation platforms such as TikTok and Quibi

Work with a single client across creative services and advertising

SummaryInvestment Case




Brave Bison Investment Case

1. Management Team Refreshed management team has sector experience and ‘skin in the game’. Oliver and Theo Green have invested £1.9m for 27% of Brave Bison.

2. High-Growth Sector Opportunity to capitalise on the growth of digital marketing and the proliferation of content across social media.

3. Global Presence Brave Bison is represented across Europe and JAPAC, and has a global audience across its media brands.

4. Business Model Diversified and differentiated revenue streams provide stable earnings and ability to invest free cashflow into growth.

5. Capitalisation Brave Bison has a strong, debt-free balance sheet.

AppendixFinancials & Shareholder Register



Income Statement

£m HY 2020 HY 2019RevenueAdvertising 4.6 6.6Creative Services 1.0 3.6Total 5.5 10.1

Gross ProfitAdvertising 1.2 1.7Gross Margin 24% 27%Creative Services 0.7 1.7Gross Margin 70% 47%Total 1.8 3.4Gross Margin 33% 33%

Administrative Expenses (2.6) (3.6)

Adjusted Operating Loss (0.8) (0.2)Restructuring & Impairment (0.6) (1.0)

Finance Costs & Other 0.0 0.0Loss Before Tax (1.4) (1.2)

The business was restructured in H1 2020 and is anticipated to be EBITDA breakeven in H2 2020



Statement of Financial Position

£m 30 June 2020 30 June 2019

Intangible assets 1.0 1.3Property, plant and equipment 0.6 0.0

Total non-current assets 1.5 1.4

Trade and other receivables 2.2 5.6Cash and cash equivalents 2.1 3.7Total current assets 4.3 9.3

Trade and other payables (3.6) (6.2)

Lease liabilities (0.5) -

Total current liabilities (4.1) (6.2)

Deferred tax (0.1) (0.2)

Lease Liabilities (0.1) -Total non-current liabilities (0.3) (0.2)

Net assets 1.4 4.3




Shareholder Register

Shareholder Description Ownership

Tangent Marketing Services * Oliver and Theo Green 27.3%

Vesuvius Limited* Gibraltar-based private family office 15.9%

CIP Merchant Capital Investment fund 11.7%

Simon Davies Private individual 7.0%

MMC Ventures UK-based venture capital fund 5.1%

Shareholders with less than 3% 33.0%

Total 100.0%

* Includes shareholdings through associated companies and individuals

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