noah advisors presentation 26 june
DESCRIPTION
Presentation from NOAH Advisors at the NOAH Conference in San Francisco on 26 June 2012TRANSCRIPT
June 2012
Hello San Francisco!
6 Months Ago: We Thought This is Much Easier
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But with a Little Help We Managed
Consort Partners Overview
Founded in 2004, Consort Partners is an
international strategic marketing, social media and
public relations company with a track record of
building the profiles and awareness of new and
established businesses alike
Consort Partners has its entrepreneurial roots in
creating, building, and leading high-profile
companies across technology, media, and finance
markets across the US, Europe and Asia
Consort employs senior journalists, PR and
marketing experts who have an international
network of business leaders, journalists, thought-
leaders, opinion formers, financiers and analysts
that they can leverage on behalf of our clients.
Consort Partners is a privately-held company owned
100% by the founders and is based in the Bay Area,
with operations in Austin, New York, and London Kathy Johnson, Founder of Consort Partners
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Finally Here!
It is Really Hot Here
Guys, Let’s Go!
So Today… We Are Proud to Be Here
Who and What is NOAH
Unique Industry Know-How Core Investment Banking Competence
Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs!
100% focused on Internet companies, covering over 25 sub-verticals in this highly complex industry - 15+ years active coverage of leading European
Internet companies and investors Deep understanding of industry dynamics and
thinking of industry leaders Ability to add value beyond banking advice
- Facilitates overall process and minimizes management distraction
The NOAH team has 25+ years of media investment banking experience - Routine execution of M&A and financing
transactions with sizes of several billion euros The team has been working together closely for 7
years (including 6 years at Lehman Brothers) 8 successfully completed NOAH Advisors
transactions underline successful transfer of competencies to the Internet sector
NOAH Advisors is globally very 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 - Coverage of over 500 companies and 4,000
individuals - Proactively finds and unlocks attractive
investment opportunities for leading investors (e.g. Bigpoint)
Annual NOAH Conference
The NOAH team are entrepreneurs and focused on growing the business and establishing a reputation for excellence
Full commitment to deliver top quality results in short time frames
Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results
NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique
Marco Rodzynek
Managing Director and Founder
Yoram Wijngaarde
Director
Jan Brandes
Director
Contact Details [email protected] UK Mobile: +44 77 85 330 330 Swiss Mobile: + 41 79958 1512
Contact Details [email protected] UK Mobile: +44 79 17 084 784
Contact Details [email protected] German Mobile: +49 174 2010 984
The NOAH Advisors Core Team
Selected Completed NOAH Transactions
July 2011
April 2011 April 2011
December 2009 April 2009
Advisor to EnGrande
Sale of a majority stake in
to
have acquired a majority stake in
for $350m from
Exclusive Advisor to Summit Partners and TA Associates
Advisor to Yatego
Sale of a majority stake in
to
Advisor to Softonic
Partial sale of
to
Valuing Softonic at €175m
Advisor to Fotolia
$80m partial sale of
to
May 2012
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
November 2011
Sale of a majority stake in
to Quants Financial Services AG
Exclusive Financial Advisor to grupfoni and its Shareholders
April 2012
Sale of a 100%-stake in
to
Financial Advisor to Toprural and its Shareholders
Fotolia - Europe’s Largest Internet LBO 2012
May 2012
$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
Exclusive Financial Advisor to Fotolia and its shareholders
NOAH Advisors’ Role
Fotolia has been a close relationship of NOAH
Advisors for over 3 years
In April 2009, NOAH Advisors advised the Fotolia
founders in their sale of a majority stake to TA
Associates
NOAH had worked intensively with Fotolia and its
shareholders on various strategic opportunities and
introduced the deal to KKR, with whom NOAH has as
long-standing institutional relationship
NOAH Advisors acted as exclusive M&A financial
advisor to Fotolia and its shareholders, and
facilitated a fast execution based on in-depth
knowledge the company, and intelligence around
the best potential investor candidates
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#1 Regional Advisor DACH by Real Deals
The Need of NOAH San Francisco
So Why Are We Here?
Because …
We love the Internet
Clients asked us to expand the NOAH Conference to reach
more US companies and investors
Most of you don't like to travel
Europe matters:
There are ~100 European Internet Companies
valued at over €200m+
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Europe Matters!
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A significant number of companies are valued at over €200 million
Note: selected examples.
Company Segment
Innovative payment platform
Largest pure-play fashion Retailer
Enterprise software
Social networking for people you don’t know
Betting
Free to play online gaming
Toolbars
Freemium anti-virus
Payment instalments
European Internet Pioneers & Global Leaders
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Company Segment
Remote access
Open-source database
FX
Vertical ad network (soccer)
VoIP
Legal music service
Global hotel comparison leader
Private sales
Personal loans
Some business models were invented or most successfully executed in Europe
Public Internet Valuations – US vs. Europe
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European Internet companies are valued at a significant discount compared to the US
15.0x
10.1x
US Europe
12.0x
8.6x
US Europe
Internet EV / EBITDA 2012E Internet EV / EBITDA 2013E
49% Premium 40% Premium
Sources: Bloomberg, FactSet, 4-traders, NOAH Advisors.
Europe Is Unique
10 Largest countries:
- 50m+: Germany (81.5m), France (65.3m), U.K. (62.7m), Italy (61.0m)
- 20-50m: Spain (46.8m), Ukraine (45.1m), Poland (38.4m), Romania (21.9m),
- 10-20m: Netherlands (16.8m), Portugal (10.8m)
10 Largest cities, many local markets:
- 3m+: London (7.8m), Berlin (3.5m), Madrid (3.3m)
- 1m+: Rome (2.8m), Paris (2.2m), Hamburg (1.8m), Warsaw (1.8m), Budapest (1.7m), Vienna (1.7m), Bucharest (1.6m)
Proximity to Russian and Eastern European market
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Countries & Poupulation Investors
Less VC money available and harder to get funding
Serial entrepreneurs and angel investors dominate the scene as in the US
Cultural differences, e.g. not anyone wants to get rich, different work ethics / intensity levels
Lets Compare the US and European Internet Success Stories
NOAH Study – Companies Included
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US Market Cap: $96bn European Market Cap: $27bn
Nov-09 Nov-11
Feb-12 Mar-12 Jan-11
May-12 Nov-11 Jun-11
May-11 May-09
Jun-11 Feb-10 May-10
Feb-12 Jul-11 Dec-11
Oct-01 Feb-12 Oct-10
Dec-10 Aug-06
Nov-10 Jul-07
Jul-10 Apr-11 Mar-06
Nov-05 Mar-05 Dec-06
May-11 Dec-09 May-08
The market cap of post-2000 Internet bubble IPOs is ~4x larger in the US than in Europe
Note: Market caps as of 15-Jun-12.
= EBITDA Negative IPO Date
Company Size and Valuation Growth
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6.0
1.7
US Europe
14%
46%
US Europe
Average Market Cap ($bn) Average Share Price Performance since IPO
Sources: Bloomberg, FactSet, 4-traders, NOAH Advisors. We excluded Asos, up (8,145% since IPO)
US company universe valued 3.5x higher than European one
However, EU companies performed 3.3x better since IPO than the US group
European Internet IPOs are cheaper than US Internet IPOs
Average market cap of across sampled firms Average share price increase since IPO of sampled firms
VC Funding is Less Developed in Europe
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Average VC Funding Raised ($m) VC Funding as % of Market Cap
367
69
US Europe
Average amount of venture capital raised across sampled firms
Average of venture capital raised as a percentage of current market capitalisation of sampled firms
European public companies have relied less on VC money than US ones
VC investment per company and in % of current market cap significantly lower in Europe compared to the US
However, there are also fewer winners in Europe (less exits)
6.1%
21.1%
US Europe
Including
Tradedoubler (165%)
& Ocado (53%)
1.6%
Sources: Bloomberg, FactSet, 4-traders, NOAH Advisors.
Valuation Drivers in the Context of a Company’s Development Stage: How NOAH sees the World
Increasing valuations – However Multiples Get More Reasonable (in Theory)
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Management Technology Users / KPIs Revenues EBITDA Market
Leadership
Decreasing Execution Risk and Benefit of the Doubt (Less to Hope for)
(GROWTH * MARGIN) Predictability = Valuation Multiple
A Look at the Largest VC Backed Companies
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VC Capital Raised ($bn) Share Price Performance since IPO
Over-promised and under-delivered? They jumped several hurdles in our valuation chain
2,240
1,140
860
510
471
(21%)
(50%)
(44%)
(22%)
(44%)
Source: Bloomberg, FactSet, 4-traders & NOAH Advisors.
Company Last Round Raised Selected Investors
Feb-09 $65m
Jan-12 $63m
Apr-12 $62m
Mar-11 $59m
Feb-12 $58m
Jun-09 $53m
Jun-12 $47m
May-10 $23m
Company Last Round Raised Selected Investors
Mar-11 $218m
June-11 $188m
Dec-11 $166m
Feb-12 $145m
Jul-07 $130m
Apr-12 $129m
Sep-07 $117m
May-11 $114m
Feb-12 ~$100m
High Profile Venture Backed Companies
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European VC is waking up or rather has been awakened by many US investors
Sources: Crunchbase, NOAH Advisors.
Financial Investors at the NOAH Conference 2011
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Fund Attendees Key Contact
11 Harry Nelis ([email protected]) Sonali de Rycker ([email protected]) Adam Valkin ([email protected])
9 Dominique Vidal ([email protected]) Ben Holmes ([email protected]) Jan Hammer ([email protected])
3 Hans-Jürgen Schmitz ([email protected])
Eugene Mizin ([email protected]) Guillaume Durao ([email protected])
3 Pawel Chudzinski ([email protected]) Lukasz Gadowski ([email protected]) Kolja Hebenstreit ([email protected])
2 Roberto Bonanzinga ([email protected]) Dharmash Mistry ([email protected] )
2 Marcel Rafart ([email protected]) Javier Rubio ([email protected])
2 Pär-Jörgen Pärson ([email protected]) Hans Otterling ([email protected])
2 Andrin Bachmann ([email protected]) Greg Lockwood ([email protected])
2 Alexander Ribbink ([email protected]) Rogier Taphoorn ([email protected])
2 Hubert Deitmers ([email protected]) Martijn Hamann ([email protected])
2 Alex Gonthier (gonthier@@wellington-partners.com) Christian Thaler-Wolski ([email protected])
1 Emanuele Levi ([email protected])
1 Mike Chalfen ([email protected])
1 Mattias Ljungman ([email protected])
1 Michael Eisenberg ([email protected])
1 Alon Lifshitz ([email protected])
1 Ian Noel ([email protected])
1 Nic Brisbourne ([email protected])
1 Ben Tompkins ([email protected])
1 Bernard Vogel ([email protected])
1 Davor Hebel ([email protected])
1 Stephen Lowery ([email protected])
1 Torsten Kreindl ([email protected] )
1 Laurel Bowden ([email protected])
1 Martin Weber ([email protected])
1 Johan Englund ([email protected])
1 Baris Aksoy ([email protected])
1 Tomasz Czechowicz ([email protected])
1 Thomas Preuss ([email protected])
1 Phillippe Collombel ([email protected])
1 Tony Askew ([email protected] )
1 Olivier Sichel ([email protected])
1 Mauro Pretolani ([email protected])
Fund Attendees Key Contact
9 Stefan Götz ([email protected]) Zita Saurel ([email protected]) Blake Kleinman ([email protected])
4 Philipp Freise ([email protected]) Lucian Schoenefelder ([email protected]) Vania Schlogel ([email protected])
4 Dominik Stein ([email protected] ) Christian Schuette ([email protected]) Anil Hansjee ([email protected])
3 Kai Romberg ([email protected]) Dan Groen ([email protected]) Sascha Kaumann ([email protected])
3 Karim Tabet ([email protected]) Bruno Mourgue d'A. ([email protected])
Andrew Tisdale ([email protected])
3 Karl Peterson ([email protected]) Anand Tejani ([email protected]) Jean Baptiste Brian ([email protected])
2 Tripp Lane ([email protected]) Frank Ehmer ([email protected])
2 Andrea Valeri ([email protected]) Lance Toler ([email protected])
2 Stefan Franssen ([email protected]) Natalie Tydeman ([email protected])
2 Hinrich Stahl ([email protected]) Helge Luetzen ([email protected])
2 Michael Korzinstone ([email protected])
John Flynn ([email protected])
1 Jan-Olivier Fillols ([email protected])
1 Jens Hagen ([email protected])
1 Jörg Mohaupt ([email protected])
1 Michael Black ([email protected])
1 Jason Khaksar ([email protected])
1 Andrew Young ([email protected])
Fund Attendees Key Contact
7 John Meeks ([email protected]) Ajit Nedungadi ([email protected]) Morgan Seigler ([email protected])
5 Scott Collins ([email protected]) Christian Strain ([email protected]) Vincent Lambert ([email protected])
5 Konrad Stoebe ([email protected]) Steven Klooster ([email protected]) Johannes Korp ([email protected])
3 Frank Seehaus ([email protected]) Jan-Gisbert Schultze ([email protected]) Benedikt Sudbrock ([email protected])
3 Fabio Giuseppetti ([email protected]) Daniel Mytnik ([email protected]) Ricardo Caupers ([email protected])
2 Marco Brockhaus ([email protected]) Jan Daniel Neumann ([email protected])
2 Chris Caulkin ([email protected]) David Lisewski ([email protected])
2 Sarah Pinto ([email protected]) Peter Garran ([email protected])
2 Jim Quagliaroli ([email protected]) Jeff Haywood ([email protected])
2 Daniel O’Keefe ([email protected] ) Woody Marshall ([email protected])
2 Stephen Byrne ([email protected]) Jussi Wuoristo ([email protected])
Expansion Capital
1 Fabian Wasmus ([email protected])
Mercury 1 Sebastien Briens ([email protected])
1 Harley Miller ([email protected])
1 Christoph Haschka ([email protected])
1 Mark Joseph ([email protected])
1 Pueo Keffer ([email protected])
1 Richard Yen ([email protected])
1 Morgan Callagy ([email protected])
Growth Capital (€20-250m) Venture Capital (€5-20m) Private Equity (€250-1,000+m)