Next 15 Group Plc · LSE:NFG

Next 15 — Next Fifteen Communications Group — H1 2017 Earnings Presentation

16 slides from Next 15's earnings presentation, Sep 27, 2016

  1. Slide 1: Technology Driven Marketing: Interim Results Sept 2016

    TECHNOLOGY DRIVENMARKETING TECHNOLOGY DRIVEN MARETING INTERIM RESULTS – SEPT 2016 Next Fifteen Interims – SEPT 27 2016

  2. Slide 2: Financial Summary

    FINANCIAL SUMMARY • Revenue up 30.3% to £80.5m (2015: £61.8m) • Organic* revenue growth of 12.8% (US organic revenue growth 17.2%) • Headline** EBITDA up 50.6% to £12.8m (2015: £8.5m) • Headline operating profit margin up to 13.8% from 11.7% • Headline pre tax profits up 47.2% to £10.6m (2015: £7.2m

  3. Slide 3: Corporate Progress

    CORPORATE PROGRESS • US continues to drive growth with organic growth of 17.2% and total growth of 27% to £50.7.m (2015: £39.9m) • UK revenues grew 56% to £20m (2015: £12.8m) with margin up to 17.8% (2015: 11.5%) thanks to acquisitions and operational improvements • UK portfolio action within last 1

  4. Slide 4: Drivers

    DRIVERS • Embed technology into our work • Work with high growth companies • Focus on key geographies • Acquisitions with US growth potential • Simple incentive schemes Slide 4 Next Fifteen Interims – SEPT 27 2016

  5. Slide 5: Publitek

    PUBLITEK • A digital content marketing agency that specialises in semiconductor and electronics markets • Delivering strong operating margins thanks to innovative business model for content creation/delivery • Expanding to the US market in October 2016 • Delivered profits of £1.1m in H1, since acqui

  6. Slide 6: Pinnacle

    PINNACLE • Opportunity to acquire a complementary business to Publitek, which will be managed as one business • Brings succession plan and strengthens overall management team • In the 12 months to June 2016 EBIT was £1.2m • Acquisition values business at £6.8m • Initial consideration of £4.4m • Furt

  7. Slide 7: Financial Review

    FINANCIAL REVIEW Slide 7 Next Fifteen Interims – SEPT 27 2016

  8. Slide 8: Income Statement - Headline Results

    INCOME STATEMENT - HEADLINE RESULTS £M H1 2017 H1 2016 GROWTH % Revenue 80.5 61.8 30.3% EBITDA 12.8 8.5 50.6% Operating profit 11.1 7.2 54.2% Operating margin 13.8% 11.7% PBT 10.6 7.2 47.2% Tax (2.3) (1.6) Minorities (0.2) (0.4) Retained Profit 8.1 5.2 55.8% Diluted EPS 10.5 7.3 43.8% Interim divide

  9. Slide 9: Regional Breakdown

    REGIONAL BREAKDOWN Revenue Operating Margin Margin Organic Margin comments H1 2017 Profit H1 H1 Growth £M £M 2017 2016 US 50.7 10.1 20.0% 20.9% 17.2% Continued doubled digit organic growth and 20%+ margins UK 20.0 3.6 17.8% 11.5% 2.9% Significant margin improvement driven by acquisitions and operati

  10. Slide 10: Cash Flow Statement

    CASH FLOW STATEMENT £M H1 2017 H1 2016 Inflow from op activities 11.9 8.6 Working capital 3.5 0.1 Net inflow from operations 15.4 8.7 Tax (0.7) (1.3) Net capex (6.8) (3.0) Acquisitions (12.6) (8.1) Share placings - 4.3 Other financing activities (1.0) (0.7) Exchange gain on cash held 0.1 (0.3) Incre

  11. Slide 11: Cash Commitments

    CASH COMMITMENTS 31 Jul 16 Payments Revised 27 Sep 16 £M £M Publitek & £M Pinnacle FY 2017 2.7 (0.5) 2.2 FY 2018 5.0 5.0 FY 2019 3.5 3.5 FY 2020 4.0 0.6 4.6 FY 2021 1.6 1.6 FY 2022 5.1 0.7 5.8 Total 21.9 (0.5) 1.3 22.7 Slide 11 Next Fifteen Interims – SEPT 27 2016

  12. Slide 12: Conclusion

    CONCLUSION summary of the results • Revenue up 30.3% to £80.5m • Strong start to new financial year • Organic growth of 12.8% helped by recent investments • Headline EBITDA up 50.6% to • Selective acquisition and investment £12.8m projects • Headline operating profit • Dividend progress to be mainta

  13. Slide 13: Appendices

    APPENDICES Slide 13 Next Fifteen Interims – SEPT 27 2016

  14. Slide 14: Data as at Jul 2016

    Data as at Jul 2016 Slide 14 Next Fifteen Interims – SEPT 27 2016

  15. Slide 15: 2017 Adjustments Breakdown

    2017 ADJUSTMENTS BREAKDOWN £M H1 2017 H1 2016 Adjusted pre tax profits 10.6 7.2 Deal costs (0.2) (0.2) Share based payments (1.9) (1.1) Unwinding of discount and change (2.0) (0.5) in estimate of earnout liabilities Amortisation of acquired intangibles (2.3) (1.2) Reported profit before tax 4.2 4.2

  16. Slide 16: Our 5yr Growth 2011 – 2016

    OUR 5YR GROWTH 2011 – 2016 73 117 REVENUE GROWTH % INCREASE IN EBITDA GOOGLE/ % ALPHABET 10% OF GROUP REVENUE 130 DILUTED EPS GROWTH % 49 35 46 29 INCREASE IN EBITDA % INCREASE IN NUMBER OF CLIENTS WITH FEES GREATER % % INCREASE IN HEADCOUNT % INCREASE IN AVERAGE CLIENT YIELD PER STAFF THAN $1M 12 m

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