NOAH Advisors Presentation 26 June

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Presentation from NOAH Advisors at the NOAH Conference in San Francisco on 26 June 2012

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NOAH Advisors Presentation 26 June

  1. 1. Hello San Francisco! June 2012
  2. 2. 6 Months Ago: We Thought This is Much Easier 2
  3. 3. 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,Kathy Johnson, Founder of Consort Partners with operations in Austin, New York, and London 3
  4. 4. So Today… We Are Proud to Be Here Guys, It is Really Finally Let’s Go! Hot Here Here! 4
  5. 5. Who and What is NOAH
  6. 6. NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique Selected Completed NOAH Transactions May 2012 April 2012 Unique Industry Know-How Core Investment Banking Competence Sale of a 100%-stake in 100% focused on Internet companies, covering  The NOAH team has 25+ years of media 150 million growth equity investment from over 25 sub-verticals in this highly complex investment banking experience industry - Routine execution of M&A and financing for a 50% stake alongside Fotolia’s Founders and to - 15+ years active coverage of leading European transactions with sizes of several billion euros Internet companies and investors  The team has been working together closely for 7 Additional $150 million senior debt financing Total $300 million investment Deep understanding of industry dynamics and years (including 6 years at Lehman Brothers) Financial Advisor to Fotolia and its Shareholders Financial Advisor to Toprural and its Shareholders thinking of industry leaders  8 successfully completed NOAH Advisors Ability to add value beyond banking advice transactions underline successful transfer of - Facilitates overall process and minimizes competencies to the Internet sector November 2011 July 2011 management distraction Sale of a majority stake in Sale of a majority stake in Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs! NOAH Advisors is globally very well connected  The NOAH team are entrepreneurs and focused to to and has direct access to virtually all key players in on growing the business and establishing a Quants Financial Services AG the industry reputation for excellence Exclusive Financial Advisor to - Knowledge of and strong relationships with  Full commitment to deliver top quality results in grupfoni and its Shareholders Advisor to EnGrande potential buyers’ key decision makers short time frames - Coverage of over 500 companies and 4,000  Highly success-based compensation structures individuals align interests of clients and NOAH Advisors, and April 2011 April 2011 - Proactively finds and unlocks attractive demonstrate conviction to deliver top results Sale of a majority stake in investment opportunities for leading have acquired a majority stake in investors (e.g. Bigpoint) Annual NOAH Conference to for $350m from The NOAH Advisors Core Team Exclusive Advisor to Advisor to Yatego Summit Partners and TA Associates Marco Yoram Jan Rodzynek Wijngaarde Brandes December 2009 April 2009 Managing Director Director Director Partial sale of $80m partial sale of and Founder to toContact Details Contact Details Contact Details Valuing Softonic at €175mmarco.rodzynek@noah-advisors.com yoram.wijngaarde@noah-advisors.com jan.brandes@noah-advisors.com Advisor to Softonic Advisor to FotoliaUK Mobile: +44 77 85 330 330 UK Mobile: +44 79 17 084 784 German Mobile: +49 174 2010 984Swiss Mobile: + 41 79958 1512
  7. 7. Fotolia - Europe’s Largest Internet LBO 2012 May 2012 NOAH Advisors’ Role  Fotolia has been a close relationship of NOAH $150 million growth equity investment from Advisors for over 3 years  In April 2009, NOAH Advisors advised the Fotolia founders in their sale of a majority stake to TA for a 50% stake alongside Fotolia’s Founders and 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 Additional $150 million senior debt financing long-standing institutional relationship Total $300 million investment  NOAH Advisors acted as exclusive M&A financial Exclusive Financial Advisor to advisor to Fotolia and its shareholders, and Fotolia and its shareholders facilitated a fast execution based on in-depth knowledge the company, and intelligence around the best potential investor candidates 7
  8. 8. #1 Regional Advisor DACH by Real Deals 8
  9. 9. The Need of NOAH San Francisco
  10. 10. 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 dont like to travel Europe matters: There are ~100 European Internet Companies valued at over €200m+ 10
  11. 11. Europe Matters!A significant number of companies are valued at over €200 million 11Note: selected examples.
  12. 12. European Internet Pioneers & Global LeadersSome business models were invented or most successfully executed in Europe Company Segment Company Segment  Innovative payment platform  Remote access  Largest pure-play fashion Retailer  Open-source database  Enterprise software  FX  Social networking for people you  Vertical ad network (soccer) don’t know  Betting  VoIP  Free to play online gaming  Legal music service  Toolbars  Global hotel comparison leader  Freemium anti-virus  Private sales  Payment instalments  Personal loans 12
  13. 13. Public Internet Valuations – US vs. EuropeEuropean Internet companies are valued at a significant discount compared to the US Internet EV / EBITDA 2012E Internet EV / EBITDA 2013E 15.0x 12.0x 49% Premium 40% Premium 10.1x 8.6x US Europe US EuropeSources: Bloomberg, FactSet, 4-traders, NOAH Advisors. 13
  14. 14. Europe Is Unique Countries & Poupulation Investors 10 Largest countries:  Less VC money available and harder to get - 50m+: Germany (81.5m), France (65.3m), funding U.K. (62.7m), Italy (61.0m) - 20-50m: Spain (46.8m), Ukraine (45.1m),  Serial entrepreneurs and angel investors Poland (38.4m), Romania (21.9m), dominate the scene as in the US - 10-20m: Netherlands (16.8m), Portugal  Cultural differences, e.g. not anyone wants (10.8m) to get rich, different work ethics / intensity 10 Largest cities, many local markets: levels - 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 14
  15. 15. Lets Compare the US and European Internet Success Stories
  16. 16. NOAH Study – Companies IncludedThe market cap of post-2000 Internet bubble IPOs is ~4x larger in the US than in Europe US Market Cap: $96bn European Market Cap: $27bn Nov-09 Nov-11 Oct-01 Feb-12 Oct-10 Feb-12 Mar-12 Jan-11 Dec-10 Aug-06 Nov-10 Jul-07 May-12 Nov-11 Jun-11 Jul-10 Apr-11 Mar-06 May-11 May-09 Nov-05 Mar-05 Dec-06 Jun-11 Feb-10 May-10 May-11 Dec-09 May-08 Feb-12 Jul-11 Dec-11 IPO Date = EBITDA NegativeNote: Market caps as of 15-Jun-12. 16
  17. 17. Company Size and Valuation Growth  US company universe valued 3.5x higher than European one  However, EU companies performed 3.3x better since IPO than the US group  European Internet IPOs are cheaper than US Internet IPOs Average Market Cap ($bn) Average Share Price Performance since IPO Average market cap of across sampled firms  Average share price increase since IPO of sampled firms 6.0 46% 1.7 14% US Europe US EuropeSources: Bloomberg, FactSet, 4-traders, NOAH Advisors. We excluded Asos, up (8,145% since IPO) 17
  18. 18. VC Funding is Less Developed in Europe  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) Average VC Funding Raised ($m) VC Funding as % of Market Cap Average amount of venture capital raised across sampled  Average of venture capital raised as a percentage of current firms market capitalisation of sampled firms 367 21.1% Including Tradedoubler (165%) & Ocado (53%) 6.1% 69 1.6% US Europe US EuropeSources: Bloomberg, FactSet, 4-traders, NOAH Advisors. 18
  19. 19. Valuation Drivers in the Context of a Company’sDevelopment Stage: How NOAH sees the World MarketManagement Technology Users / KPIs Revenues EBITDA LeadershipIncreasing valuations – However Multiples Get More Reasonable (in Theory) Decreasing Execution Risk and Benefit of the Doubt (Less to Hope for) (GROWTH * MARGIN) Predictability = Valuation Multiple 19
  20. 20. A Look at the Largest VC Backed CompaniesOver-promised and under-delivered? They jumped several hurdles in our valuation chain VC Capital Raised ($bn) Share Price Performance since IPO 2,240 (21%) 1,140 (50%) 860 (44%) 510 (22%) 471 (44%)Source: Bloomberg, FactSet, 4-traders & NOAH Advisors. 20
  21. 21. High Profile Venture Backed CompaniesEuropean VC is waking up or rather has been awakened by many US investors Company Last Round Raised Selected Investors Company Last Round Raised Selected Investors Mar-11 $218m Feb-09 $65m June-11 $188m Jan-12 $63m Dec-11 $166m Apr-12 $62m Feb-12 $145m Mar-11 $59m Jul-07 $130m Feb-12 $58m Apr-12 $129m Jun-09 $53m Sep-07 $117m Jun-12 $47m May-11 $114m May-10 $23m Feb-12 ~$100mSources: Crunchbase, NOAH Advisors. 21
  22. 22. Financial Investors at the NOAH Conference 2011 Venture Capital (€5-20m) Growth Capital (€20-250m) Private Equity (€250-1,000+m) Fund Attendees Key Contact Fund Attendees Key Contact Fund Attendees Key Contact Harry Nelis (hnelis@accel.com) John Meeks (jmeeks@ta.com) Stefan Götz (sgoetz@hf.com) 11 Sonali de Rycker (sderycker@accel.com) 7 Ajit Nedungadi (ajit@ta.com) 9 Zita Saurel (zita@hf.com) Adam Valkin (avalkin@accel.com) Morgan Seigler (mseigler@ta.com) Blake Kleinman (bkleinman@hf.com) Dominique Vidal (dom@indexventures.com) Scott Collins (scollins@summitpartners.com) Philipp Freise (freip@kkr.com) 9 Ben Holmes (benh@indexventures.com) 5 Christian Strain (cstrain@summitpartners.com) 4 Lucian Schoenefelder (lucian.schoenefelder@kkr.com) Jan Hammer (jan@indexventures.com) Vincent Lambert (vlambert@summitpartners.com) Vania Schlogel (vania.schlogel@kkr.com) Hans-Jürgen Schmitz (hans-juergen.schmitz@mangrove-vc.com) Konrad Stoebe (konrad.stoebe@warburgpincus.com) Dominik Stein (dominik.stein@eqt.de ) 3 Eugene Mizin (eugene.mizin@mangrove-vc.com) 5 Steven Klooster (steven.klooster@warburgpincus.com) 4 Christian Schuette (christian.schuette@eqt.de) Guillaume Durao (guillaume.durao@mangrove-vc.com) Johannes Korp (johannes.korp@warburgpincus.com) Anil Hansjee (anil@hansjee.net) Pawel Chudzinski (pawel@pointninecap.com) Frank Seehaus (fs@actoncapital.de) Kai Romberg (kai.romberg@hgcapital.com) 3 Lukasz Gadowski (lukasz@teameurope.net) 3 Jan-Gisbert Schultze (jgs@actoncapital.de) 3 Dan Groen (dan.groen@hgcapital.com) Kolja Hebenstreit (kolja@teameurope.net) Benedikt Sudbrock (bs@actoncapital.de) Sascha Kaumann (sascha.kaumann@hgcapital.com) Roberto Bonanzinga (rbonanzinga@balderton.com) Fabio Giuseppetti (giuseppetti@palamon.com) 2 Karim Tabet (karim.tabet@provequity.co.uk) Dharmash Mistry (dmistry@balderton.com ) 3 Daniel Mytnik (mytnik@palamon.com) Ricardo Caupers (caupers@palamon.com) 3 Bruno Mourgue dA. (bruno.mourguedAlgue@provequity.co.uk) Marcel Rafart (marcel.rafart@nautacapital.com) Andrew Tisdale (andrew.tisdale@provequity.co.uk) 2 Javier Rubio (javier.rubio@nautacapital.com) Marco Brockhaus (brockhaus@brockhaus-pe.com) Karl Peterson (kpeterson@tpg.com) Pär-Jörgen Pärson (pjp@northzone.com) 2 Jan Daniel Neumann (neumann@brockhaus-pe.com) 2 3 Anand Tejani (atejani@tpg.com) Hans Otterling (hans@northzone.com) Jean Baptiste Brian (jbbrian@tpg.com) Andrin Bachmann (andrin.bachmann@pitoncap.com) Chris Caulkin (ccaulkin@generalatlantic.com) 2 Greg Lockwood (greg.lockwood@pitoncap.com) 2 David Lisewski (dlisewski@generalatlantic.com) Tripp Lane (tripp.lane@apax.com) 2 Frank Ehmer (frank.ehmer@apax.de) Alexander Ribbink (alexander@primeventures.com) 2 Rogier Taphoorn (rogier@primeventures.com) Sarah Pinto (spinto@greathillpartners.com) 2 Peter Garran (pgarran@greathillpartners.com) Hubert Deitmers (hubert.deitmers@endeit.com) Andrea Valeri (valeri@blackstone.com) 2 Martijn Hamann (martijn.hamann@endeit.com) 2 Lance Toler (lance.toler@blackstone.com) Alex Gonthier (gonthier@@wellington-partners.com) Jim Quagliaroli (jim@spectrumequity.com) 2 2 Jeff Haywood (jeff@spectrumequity.com) Christian Thaler-Wolski (thaler@wellington-partners.com) Stefan Franssen (stefan.franssen@gmtpartners.com) 2 Natalie Tydeman (natalie.tydeman@gmtpartners.com) 1 Emanuele Levi (emanuele.levi@360capitalpartners.com) Daniel O’Keefe (dokeefe@tcv.com ) 1 Mike Chalfen (mike.chalfen@adventventures.com) 2 Woody Marshall (wmarshall@tcv.com) Hinrich Stahl (hs@maryland-gmbh.de) 1 Mattias Ljungman (mattias@atomicoinvestments.com) 2 Helge Luetzen (hl@maryland-gmbh.de) Stephen Byrne (stephen.byrne@vitruvianpartners.com) 1 Michael Eisenberg (michael@benchmark.com) 2 Jussi Wuoristo (jussi.wuoristo@vitruvianpartners.com) Michael Korzinstone (michael.korzinstone@silverlake.com) 1 Alon Lifshitz (alon@blumbergcapital.com) 2 John Flynn (john.flynn@silverlake.com) 1 Ian Noel (iannoel@bonsaigrupo.com) 1 Fabian Wasmus (fabian.wasmus@eqt.de) Expansion Capital 1 Nic Brisbourne (nic@dfjesprit.com) 1 Jan-Olivier Fillols (jan-olivier.fillols@3i.com) 1 Sebastien Briens (sebastien.briens@hgcapital.com) 1 Ben Tompkins (bt@edenventures.co.uk) Mercury 1 Bernard Vogel (bv@endeavourvision.com) 1 Jens Hagen (jhagen@uk.adventinternational.com) 1 Harley Miller (HMiller@insightpartners.com) 1 Davor Hebel (davor@fgpe.com) 1 Stephen Lowery (stephen.lowery@frogcapital.com) 1 Jörg Mohaupt (jmohaupt@accind.com) 1 Christoph Haschka (christoph.haschka@macquarie.com) 1 Torsten Kreindl (t.kreindl@grazia.com ) 1 Laurel Bowden (lbowden@greylock.com) 1 Michael Black (michael.black@bridgepoint.eu) 1 Mark Joseph (mark.joseph@oakleycapital.com) 1 Martin Weber (martin.weber@holtzbrinck.net) 1 Johan Englund (johan.englund@industrifonden.se) 1 Pueo Keffer (pkeffer@redpoint.com) 1 Jason Khaksar (jason.khaksar@carlyle.com) 1 Baris Aksoy (baris.aksoy@intel.com) 1 Tomasz Czechowicz (czechowicz@mci.eu) 1 Richard Yen (ryen@saban.com) 1 Andrew Young (andrew.young@permira.com) 1 Thomas Preuss (preuss@neuhauspartners.com) 1 Phillippe Collombel (pcollombel@partechventure.com) 1 Morgan Callagy (callagym@vss.com) 1 Tony Askew (tony.askew@reedelsevier.com ) 1 Olivier Sichel (osichel@sofinnova.fr) 1 Mauro Pretolani (mauro.pretolani@tlcom.co.uk) 22
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