Mission Group Public Limited Company · LSE:TMG
Mission Group Public — The Mission Group — H1 2023 Earnings Presentation
34 slides from Mission Group Public's earnings presentation, Sep 26, 2023
Slide 1: Interim Results Presentation
2023 INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS TO 30 JUNE 2023 AS AT 26TH SEPTEMBER 2023
Slide 2: Contents
2 1. Group strategy (reprise) and 6-month creative review CONTENTS 2. Financial Review 3. Business Update and Outlook
Slide 3: The Mission
3 THE MISSION TO be the preferred creative partner for real business growth BY delivering Work That CountsTM TECHNOLOGY HEALTH BUSINESS CONSUMER SPORTS & PROPERTY & MOBILITY & WELLNESS & CORPORATE & LIFESTYLE ENTERTAINMENT MISSION ADVANTAGE MISSION COMMERCIAL
Slide 4: The Mission: Lead Creative Agency
4 LEAD CREATIVE AGENCY: THE MISSION TO be the preferred creative partner for real business growth BY delivering Work That CountsTM T E C H N O L O G Y H E A L T H B U S I N E S S C O N S U M E R SPORT S & P R O P E R T Y ENTERTAI NMENT & M O B I L I T Y & W E L L N E S S & C O R P O R A T E & L I F
Slide 5: Used and ready to do business
Used andready todo business azz The challenge jen Used Vans come at a premium, they cost the average garage and wi t of liv crisis, we needed a way to justify spendi extra for a bit more main dealer reassurance. The solution We show t Volkswagen has 'been there and don: an Approved Used Vehicle from
Slide 6: Stop-frame animation ad
gs of nostal those times as a c! they were cuddled-up on the sofa feeling poorly. Stop frame animation allowed us to do this; the handmade sthetic helped us create a huge warm cuddle of an ad. Each piece that made up our world was bespoke. Even Lauren's jumper was hand- knitted with miniature needle
Slide 7: Thatchers: Pint-Sized Perfection
— ~ oe ee Craft beer has gone from strength to strength. But cider hasn’t kept up. Thatchers wanted to reach more people outside of their heartland, but were being held back by the misconception ‘that it’s only drunk by old men in dreary West ‘Country pubs. They needed to widen its appeal, getting a
Slide 8: From Laughable to Loveable
8 FROM LAUGHABLE CHALLENGE Having hit the ceiling for growth, and with core SOLUTION Help ScS live-up to its new brand purpose. Starting CHANNELS TV, OOH, instore POS, logo THE SUCCESS 33% Increase in brand search TO LOVEABLE audiences actively rejecting them, ScS needed to shake-off the negative pe
Slide 9: Macmillan Cancer Support
MACMILLAN CANCER SUPPORT One of the UK’s best- known charities, we've been working with Macmillan Cancer Support since 2021. In 2023, we were tasked with creating a national campaign to promote their iconic Coffee Morning fundraising event. We developed a powerful new strategic and creative proposit
Slide 10: Financial Review
10 • Resilient H1 performance • Revenue up 11% (6% organic) 2. • Margins impacted by US Tech FINANCIAL • Significant H2 weighting per previous years REVIEW • Interest rates & net debt level drive borrowing cost increase • Continue dividend progression
Slide 11: Profit & Loss
11 PROFIT & LOSS £M H1 2023 H1 2022 £ change % BILLINGS 92.9 81.2 11.7 DPS PROGRESSION (P) REVENUE 41.8 37.5 4.3 11.4% OPERATING EXPENSES (39.8) (35.3) (4.5) 3.0 HEADLINE OPERATING PROFIT 2.0 2.2 (0.2) (11%) 2.5 OPERATING MARGIN 4.8% 5.9% (1.1%) 2.0 SHARE OF ASSOCIATES/JV 0.1 0.1 0.0 1.5 INTEREST (1
Slide 12: Segmental Analysis
12 SEGMENTAL ANALYSIS H1 MISSION Business & Consumer & Health & Sports & Tech & Invest- H1 2023 £m Corporate Lifestyle Wellness Property Entert'mnt Mobility Advntge & ments Total Central Revenue 10.1 9.2 2.0 6.8 3.0 7.8 2.4 0.4 41.8 Headline op profit 1.4 0.9 0.2 0.6 0.4 0.3 -1.1 -0.6 2.0 • Diversit
Slide 13: The US Technology Sector
13 THE US TECHNOLOGY SECTOR H1 VS H2 TRADING H1 macro uncertainty re fears of inflation, recession, supply chain disruption and industry layoffs, • Total 2023 US Tech layoffs over 220,000 people by end August H2 optimism evidenced through: • Nasdaq surge +30% • Market endorsement of cost-cutting mea
Slide 14: Group Staff Turnover Stabilising
14 GROUP STAFF TURNOVER STABILISING Staff turnover 28% • Churn has settled well following industry-wide ‘great resignation’ 27% • Below industry levels (IPA = 26%) 26% • Wage inflation at 4% yoy 25% 24% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23
Slide 15: Balance Sheet
15 BALANCE SHEET £M H1 2023 H1 2022 DEC 2022 • Working capital increases vs H1 22 driven by £6m reduction in Client prepayments (US Tech) INTANGIBLES 102.4 99.6 99.7 FIXED ASSETS/INVESTMENTS 4.1 2.6 2.5 • Has a direct impact on net bank debt WORKING CAPITAL 5.5 3.5 5.4 • Acquisition obligations incr
Slide 16: Cash Flow
16 CASH FLOW £M H1 2023 H1 2022 HEADLINE OPERATING PROFIT 2.0 2.2 ADD BACK DEPRECIATION 1.9 1.9 LESS LEASE PAYMENTS (0.9) (1.0) EBITDA 3.0 3.1 • Interest payments £1m higher than 2022 INTEREST AND TAX (2.1) (0.4) • Tax payments higher than 2022 re US regime. NORMALISED OPERATING CASH FLOW 0.9 2.7 WO
Slide 17: Financial Review in Summary
17 FINANCIAL REVIEW IN SUMMARY • 11% Revenue growth, 6% organic • Majority of segments in growth • US Tech recovering into H2 • Significant H2 weighting per previous years • Investment phase complete • Excellent record of Cash conversion • Progressive Dividend strategy
Slide 18: Business Update & Outlook
18 3. BUSINESS UPDATE & OUTLOOK 18
Slide 19: Notable New Business Wins
19 NOTABLE NEW BUSINESS WINS The MISSION Group: • Post Office has appointed The MISSION Group as the new lead creative Agency. • The win includes strategic, creative and production services associated with owned and paid advertising, social, digital, in-branch, customer experience, PR, web and email
Slide 20: H2 NA Technology New Business Wins
20 H2 NA TECHNOLOGY NEW BUSINESS WINS Indicative value for initial SoW only: Client A: $2.2M (+ additional $800k to be specified) • Develop, deploy, and optimise a comprehensive one-to-few Global ABM program Client B: $175,000 • Reinvent their brand story & identity and bring it to life in a new web
Slide 21: The Property Market: The Next Months
21 THE PROPERTY MARKET THE NEXT 12 MONTHS Despite the well-publicised and considerable challenges currently facing new homes developers, ThinkBDW is well-placed: • The need for housebuilders to attract and convert a shrinking pool of buyers will require increased marketing efforts • As a specialist
Slide 22: The Property Market: Beyond Residential
THE PROPERTY MARKET BEYOND RESIDENTIAL 22
Slide 23: The Property Market: Beyond Residential
THE PROPERTY MARKET BEYOND RESIDENTIAL 23
Slide 24: A portfolio of strategic services built to drive positive change
24 A portfolio of strategic services built to drive positive change and dramatically extend the scale and scope of our offer. Teams of experts in HR, global digital production, data science and research, regional expansion and promotion - positioned around the globe and ready to mobilise in support
Slide 25: Mission Advantage 2023 Progress
25 MISSION ADVANTAGE 2023 PROGRESS New Head of People Services joins in November Kelly Madeley (ex HR Director for Direct Line Group) Developed a strategic blueprint 60 referred opportunities won to for MISSION ’s unified Ai date and a further 83 in progress approach Key partner of McDonald's annual
Slide 26: Mission Hubs
26 MISSION HUBS MORE PARTNERS, MORE PLACES, MORE SOLUTIONS An affordable way for any Agency to benefit from Grow your agency quickly. Increase revenue. Access best- international partnerships and collaboration. in-class resources at cost. Plan for your business and personal future. Low level annual
Slide 27: Launching This Month
27 LAUNCHING THIS MONTH G D IN P EN Boston & Philadelphia Melbourne & Sydney Milwaukee & Madison Madrid, Paris, London, Miami, New York, Philadelphia Casa Blanca & San Francisco External Partner & Affiliate ‘sales’ website (www.missionhubs.co.uk) and www.themission.co.uk Milan, Rome & London Tel Avi
Slide 28: Mission Hubs: Our Growing Global Footprint
28 MISSION HUBS OUR GROWING GLOBAL FOOTPRINT Albania Chile Iceland Macedonia Portugal Turkey Algeria China India Malaysia Qatar Uganda Angola Colombia Indonesia Malta Romania Ukraine Argentina Costa Rica Iran Mauritius Rwanda UAE Australia Croatia Iraq Mexico Saudi Arabia United Kingdom Austria Cypr
Slide 29: People, Profit and Planet
29 PEOPLE, PROFIT AND PLANET H2 we’re focused on delivering against our ESG • Group wide Employee Engagement Survey to run commitments to meet our 2025 milestone social in October benchmarked against 2022 with goals and shore up our net zero ambitions; resulting action plan embracing learnings from
Slide 30: Leveraging Our Journey and Expertise to Work with Clients
30 LEVERAGING OUR JOURNEY AND EXPERTISE TO W ORK W ITH CLIENTS SUSTAI NABI LI TY MARKETI NG REPORTI NG Brand & Learning & Measurement & Discovery Sustainability Strategy Innovation Communications Development Reporting Materiality Net Zero strategy Positive impact brand Tea & Learns Sustainable Carbo
Slide 31: The Big M's
31 THE BIG M’s C E L E B R A T I N G W O R K T H A T C O U N T S TM A creative awards initiative that celebrates WORK THAT COUNTSTM from all MISSION Agencies. The awards ceremony will take place early December in London and will see 150 of the team come together to view a showcase of the work and to
Slide 32: Influence NYC
32 INFLUENCE NYC MONGOOSE GROUP EXPANSION • Headquartered in New York, the US branch of Influence Sports will be led by Managing Director, Dirk De Vos, who has previously held Senior Executive Commercial roles at Heineken, Diageo and Unilever. • Influence Sports has a wealth of experience and long-
Slide 33: Summary and Outlook
33 SUMMARY AND OUTLOOK • Resilient H1 performance despite Technology • As previously stated no planned capability M&A sector impact in H2 – we have all we need • Strong revenue growth from our other • Profits heavily H2 weighted as per previous specialist sectors years • Superb integration of late 2
Slide 34: Thank You
34 THANK YOU The Old Sawmills, Filleigh, Devon EX32 0RN T: +44 (0)207 462 1415 themission.co.uk