Investors Presentation - January 25th, 2022 - Netgem
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Investors Presentation
January 25th, 2022
Content ➢ Netgem: B2B player in Digital Entertainment ➢ FY 2021 Revenue and Outlook ➢ Corporate and listing information ➢ Q&A
Netgem: B2B player in digital
entertainment
Who we are
✓ We have been present for 25 years in the worldwide Digital Entertainment market.
✓ Our customers are telecommunications operators and digital content editors who rely on
us to create (or boost) their TV entertainment offers.
✓ NetgemTV, our software platform, is deployed mainly in Europe and the United States,
with a B2B (2C) “as-a-service” model.
✓ Our model leverages on the infrastructure and marketing investments of our customers,
generating recurring revenues indexed to the number of end subscribers.
✓ We have been listed on Euronext for 20 years and on Euronext Growth since 2021.
✓ Our shareholders base is stable, with the 2 founders’ families being our reference
shareholders involved in our governance.
Our job: to simplify the lives of our customers ...
Complexity of new TV
Multiplication of & SVOD offers
Streaming OTT offers
Managed
SVOD/TVOD/AVOD Managed
OTT services for TV & Streaming OTT
Media & Content services operated for
owners Telcos
To simplify the lives of service operators
through innovation and quality
An “end-to-end” platform
NETGEM TV NETGEM CDN
NETGEM NETGEM NETGEM
CUSTOMER STREAMING
STUDIO PLATFORM APPLICATIONS
MANAGEMENT MS Azure CDN
ROADMAP PRODUCTS & SERVICES
OPERATIONS & MAINTENANCE
EDITORIAL ANIMATION
SALES & MARKETING SUPPORT
Our business model “as-a-service”
✓ We market our B2B (2C) platform “as-a-service”:
✓ software platform as-a-service (SaaS)
✓ additional content
✓ optional hardware and maintenance as-a-service
✓ Most of our revenues:
✓ are recurring
✓ are indexed to the number of active subscribers of our customers
✓ benefit from the leverage on our clients' infrastructure and marketing investments`
Integrating “as-a-service” technology and content leads to higher recurring margins.
7
Our competitive edge:
We earned the confidence of Telcos... …and Studios
Viihde
Elamus
Our 3 reference markets... the UK
✓ A booming fibre market fully open to cord-cutting
✓ NetgemTV is a reference platform in the UK for new
streaming services (BT Sport, Britbox, 80x Fast
channels)
✓ Already 15 partners + TalkTalk contract signed in
October 2021, advanced discussions with other major
fibre ISPs in the country (Tiers 1 & 2)
New TalkTalk contract
✓ “Tier 1” contract with the “British Free”, announced on
October 12, 2021. Strong impact on the UK market.
✓ Coming launch of the next-gen TalkTalk TV 4K service
“powered by Netgem TV”.
✓ Additional validation of:
✓ our B2B (2C) positioning and geographic priorities
✓ our “Content as-a-Service” model
✓ the confidence of major operators and OTT content /
service providers... the Nordic countries
✓ Focused on major long-term partner Elisa, leading Tier 1 operator in Finland and beyond
✓ Elisa Viihde Premium service rolled out in replacement of older generation TV offers
+ Direct distribution to subscribers of other access providers in “cord-cutting” mode.
✓ A success:
✓ in 12 months, Elisa Viihde Premium deployed to a third of Elisa’s TV customers,
✓ with customer satisfaction setting a benchmark among operators (NPS +31!).….French-speaking markets
✓ Continuing deployment of the NetgemTV
software platform
✓ With direct-to-consumer distribution through
partners operators in France and other
French-speaking markets
✓ Coupled with the resale of fibre access in French
regional areas (under the Videofutur brand)Complementary SuperStream offer
✓ SuperStream - MESH Wifi coupled with Netgem’s management platform - complement to
NetgemTV improving end-users’ experience
✓ Designed to help operators improve customers satisfaction (+18 NPS points at Videofutur)
and reduce their CAPEXNew deals in 2021 with operators
Netgem TV Superstream Content as a Service Netgem TV
January April July September October Décember
Launch of Netgem TV First deployments Launch of the offer Launch of Signature of a Deployment of
with 2 growing UK ISPs of the ‘Operated ‘VIVA by Videofutur’ fully-operated multi-year NetgemTV Zeop TV's OTT
(Pop Telecom and Super Wifi’ offer = 100% OTT (the end-to-end SVOD agreement with Tier 1 solution:
Community Fiber) (UK ISPs) most complete in service in the United TalkTalk:
France) States!
myZeop offers all TV
& Streaming services
And in particular the ‘TalkTalkTV 4K’ in Reunion Island on
aggressive offer of Pods powered by Netgem TV Laptops /
‘Fiber + TV’ in London + Mobile App + sera lancé avec les Smartphones /
with 'co-branded' Guru offres FTTH de TalkTalk Tablets ... and Apple
(management tools)
model = Community avant fin 2021
+ Signature of an TV / Android TV!
Fiber TV ... and signature of the agreement with
launch agreement for Gaumont to launch
a VOD service their 1st SVOD service
operated with in 2022
PremiereNew deals in 2021 with content owners
AVOD Sports in 4K More content (FAST) & Replay
February May June July August October
Launch of the firsts Launch of BT Sport Bein Sport in 4K on Launch of Replay Enrichment of the Netgem TV passes
AVOD offers on Ultimate (4K App) Videofutur & Zeop extended beyond 7 Netgem TV offer the 200 channel
Netgem TV in UK on Netgem TV in days and unreleased with 15 Sport milestone in the UK
& Ireland UK series on Videofutur & channels
Zeop
SVOD service
for francophiles ... with the
in North addition of 80 IP
America & FAST channels!
5,000 hours of
free AVOD ... in time for
... in time for
movies (Filmzie, the European
the Champions’
W4Free, and Football Cup!
League final!
Plex TV)FY 2021 Trading Update and Outlook
FY 2021 Trading Update
➢ Over the period, our subscriber base:
✓ grew by over 30%
✓ to reach 363.000 subscribers at end of December 2021
➢ … and gross profit:
✓ grew by 11% to reach €17.5 million,
✓ built on recurring revenues for more than 90%.
➢ … confirming the relevance of our strategy:
✓ to capture the convergence of OTT services and fibre operators
✓ with the right aggregation offer
✓ and a virtuous economic modelOutlook
➢ In 2021, we have demonstrated our ability to seize the opportunity created
by the dynamics of the Digital Entertainment market.
➢ Also, in the current inflationary context:
✓ to preserve the profitability of our contracts, we have obtained price
readjustments from our customers,
✓ we will continue to tightly control our cost structure.
➢ In 2022, we anticipate that our commercial dynamic will come into full play,
resulting in:
✓ accelerated growth of our subscriber base, with the objective of exceeding
500.000 subscribers
✓ despite the persistent tension on the components market (as in 2021)
✓ leading to continued growth in gross margin, improved EBITDA margin and
positive cash flows.Corporate and listing information
Shareholding at 31/12/2021
✓ Stable shareholders: 55%
✓ 2 founders - reference shareholders:
• Joseph Haddad & family (25%) -
Chairman of the Board
• Olivier Guillaumin & family (9%) -
Director
✓ 1 long-term family office: Mousse Partners
(9%)
✓ Managers, employees and FCPE (6%)
✓ Treasury shares and liquidity contract (6%)
✓ Significant free float: 45%
____________
=> Growing share of specialized small-cap funds
=> Significant long-term shareholding of employees/management and ex-employees/ex-management
=> Several thousand small shareholders (less than 1.000 shares) helping to provide liquidityGovernance
Founders : Independents:
Joseph haddad Olivier Guillaumin (FF) Isabelle Bordry Vincent Grivet Virginie banet
Chairman of the Board Director Director Director Director
Other Board Members:
Netgem adheres to the
Middlenext governance code
Catherine Haddad (J2H) Christophe Aulnette Marc Tessier
Director Director CensorManagement
Mathias Hautefort Sandrine Alexandre Caroline Gauthier Jean-Francois Galtier Sylvain Thevenot
Group CEO and CFO Legal and HR Director CTO C3O
Chairman and Founder of
the Vitis subsidiary. Joined Netgem since its Confirmed lawyer in business SQL, Simulog, Aucland, Founded one of the first
creation in 1996 as a law, new technologies, Monaco Telecom. Joined
Expertise in industrial and management controller ISPs in France; P&L
Telecom issues. competition, labor, personal Netgem in 2005 as CTO
and then held the position management for large
MINEFI, DGD Lyonnaise data protection…. and Head of Operations.
cable (Noos). DG Viaccess.
of Deputy Chief Financial fixed and mobile
Doctorate in European
DGA Infogrames (Atari). Officer. Appointed to the telecommunications
Business Law, DU in Business
President Pace Europe. Finance Department of the Paris Higher School of operators (Vodafone,
English, DU in Legal
Netgem Group on October Computer Science
Informatics and Master 2 in TalkTalk, EE). In charge of
Ecole Polytechnique and 1, 2020.
ENST (Corps des Mines). Comparative Law business development
DECF since 2015Our ESG strategy
Social
✓ Promotion of gender parity at Board of Directors, Comex, managers and
among teams.
✓ Promotion of diversity within a multicultural team.
✓ Actions in favor of people with disabilities.
Environment
✓ Systematic renovation of Videofutur boxes and routers
✓ Switching of TV boxes and Video streams to “reduced energy” mode
✓ Favor transport by boat instead of airMarket data
✓ Ticker: ALNTG
✓ ISIN: FR0004154060
✓ Reuters: ETGM.PA
✓ Bloomberg: ALNTG FP
✓ www.netgem.com
✓ listing sponsor: Gilbert Dupont
✓ analysts: Gilbert Dupont and Oddo BHF
✓ 52 weeks: € 1.045 - € 1.72
✓ 30,721,059 ordinary shares
✓ Market cap > 45 M€
✓ Liquidity 52 weeks> 54k / dayTransfer to Euronext Growth ✓ Listed on Euronext for 21 years. ✓ In March 2021 Netgem transferred its listing to EURONEXT GROWTH, a market dedicated to growth companies and consistent with Netgem's profile. ✓ EURONEXT GROWTH brings Netgem its dynamics and visibility, together with additional control of overheads.
Exec Sum
✓ Active for 25 years on the growing digital entertainment market
• growth drivers: fibre deployment, OTT services, cord-cutting, etc.
✓ Virtuous business model : B2B software & content as-a-service
✓ Competitive edge:
• Confidence of leading telcos over the long-term,
• Deal-making know-how with the largest right owners and OTT platforms,
• Right combination of hardware and software tech skills to offer customers and
end-users the most attractive and robust solutions.
✓ Strategy validated by telco customers, including “Tier 1s” and reflected in reported
figures
>>> rebound momentumIR contact & social networks
Investors & Analysts Relations:
Bertrand SOLEIL +33 6 23 31 06 53
DOUBLE ∙ DIGIT bertrand.soleil@double-digit.com
@netgem
#netgem
www.netgem.comThank you!
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