Public Policy Holding Co., Inc. · LSE:PPHC
Public Policy — FY2022 Earnings Presentation
40 slides from Public Policy's earnings presentation, Apr 24, 2023
Slide 1: 2022 Results Presentation
2022 Results Presentation Year Ending April 24, 2023 Dec. 31, 2021
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY , TO ANY OTHER PERSON OR IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFR
Slide 3: Table of Contents
Table of Contents 3 I. Presentation Team II. PPHC Summary I. Today’s Presenter III. 2022 Results II. Strategy and Highlights IV. M&A III. Financials 2021 V. Conclusion IV. Outlook 2022 VI. Case Studies V. Q&A VII. Appendix VI. Appendices
Slide 4: Presentation Team
Presentation Team 4 Presentation Team Stewart Hall Bill Chess Roel Smits Thomas Gensemer CEO CFO DEPUTY CFO CSO
Slide 5: PPHC Summary
5 PPHC Summary
Slide 6: ~6x growth in US Gov't spending and regulation has provided the environment for our industry
PPHC Summary 66 ~6x growth in US Gov’t A few key pieces of federal legislation (and a Supreme Court decision) have spending and regulation has provided the regulatory environment for today’s federal lobbying services and a massive increase in political/public affairs spending by corporations. provid
Slide 7: We help organizations manage risks and opportunities created by government policy
PPHC Summary 7 We help organizations manage risks and opportunities created by government policy Seismic changes in impact of government…. …providing fertile ground for PPHC US Federal Gov’t Public Policy Risk y Providing a comprehensive solution to clients, Spending $6.5T Mentions 330k combining lo
Slide 8: In the US, PPHC operates in a highly fragmented $17+bn strategic communications market
PPHC Summary 8 In the US, PPHC operates in a highly fragmented $17+bn strategic communications market Government relations and policy advocacy Public affairs and related digital services Market for regulated federal Market for state-regulated The market for public affairs is lobbying valued at $4bn(
Slide 9: The leading, non-partisan US government affairs and public policy group
PPHC Summary 9 The leading, non-partisan US Our firms work to advance the policy goals and manage government affairs and public policy regulatory risks for over 1000 corporate and non-profit clients group 2014 2015-2018 2019 2020 2021 2022 2023 Founding firms, Crossroads Acquisitions/merger Acquisit
Slide 10: PPHC firms are together the largest providers of federal lobbying
PPHC Summary 10 PPHC firms are, together, the largest providers of federal lobbying, amongst other strategic communications services Top 20 US lobbying firms 2022 Market position and recognitions Lobbying Firm 2022 Revenue (in $m) Brownstein Hyatt Farber Schrek LLP 60.6 Akin Gump Strauss Hauer & Fel
Slide 11: How does the PPHC Platform add value?
PPHC Summary 11 How does the PPHC Platform add PPHC’s Unique Platform for Strategic value? Communications Operations y PPHC is partially modelled after successful business services companies, maintaining separately branded / managed operating companies y PPHC is in a position to acquire, integrate,
Slide 12: 2022 Results
P P H Cc 4 Public Policy Holding Company 2022 Results
Slide 13: 2022 Results – Highlights
2022 Results – Highlights 33 13 Strong revenue growth and profitability underpinning cash generation and dividend payment Revenue Underlying EBITDA1 Underlying Net Income1 $108.8m FY’22: $31.2m -2.5% ’21: $32.0m FY’22: $23.3m -2.5% ’21: $23.9m +9.5% Net Cash2 Dividend +6.6% (organic) Dec’22: $21.0m
Slide 14: 2022 operational highlights
2022 Results – Highlights 14 2022 operational highlights Our Client Our Colleagues Our Community >850 244 50+ clients served across group FTE’s with industry-high (and >1000 after acquisition retention rates (and >300 after philanthropic partnerships with MultiState) acquisition MultiState) causes a
Slide 15: A strong track record of growth since inception: 2016 to date
2022 Results – Highlights 15 A strong track record of growth since inception: 2016 to date Revenue Underlying EBITDA % 7 Note: (1) Underlying EBITDA is illustrative only and calculated on the basis that 25% of pre bonus EBITDA is paid as a bonus, in line with the Group’s policy post IPO, with an ass
Slide 16: 2022 Financial Results: Multi-Year Income Statement
2022 Financial Results 16 Multi-Year Income Statement Current Trading Update in $ million FY'19 FY'20 FY'21 FY’22 Dividend declared: Total Income 55.5 77.5 99.3 108.8 Total dividend of $0.140 per share, equivalent to ~$15.5m. Aligned with intent to pay out up to 70% of underlying net profit after ta
Slide 17: Continued organic revenue growth and management of cost base
2022 Financial Results 17 Continued organic revenue growth and management of cost base in line with forecast expectations 2022 vs 2021 Income Statement and Underlying Profit Commentary USD (millions) for the year ended 31 Dec. 2022 2021 Underlying EBITDA margin of 28.7% (2021: 32.2%). Margin reducti
Slide 18: Strong balance sheet with $21.0m net cash position
2022 Financial Results 18 Strong balance sheet with $21.0m net cash position at 2022 period-end 2022 vs 2021 Balance Sheet Commentary USD (millions) for the year ended 31 Dec. 2022 2021 Net cash at period-end $21.0m, consisting of $21.2m cash less $0.2m Current Assets long term debt (2021:$17.8m). C
Slide 19: Strong net cash generation supporting dividend payout as well as M&A
2022 Financial Results 19 Strong net cash generation supporting significant dividend payout as well as M&A USD (millions) – US GAAP 2022 2021 for the year ended 31 Dec. Cash Flows from Operating Activities Commentary 2022 Net Loss vs 2021 Statement of Cash Flows (15.0) Adjustments to Reconcile Net L
Slide 20: M&A
20 M&A
Slide 21: Buy-and-build strategy focused on key geographies and deep sector expertise
M&A 21 Buy-and-build strategy focused on key geographies and deep sector expertise to help global corporate clients manage risk and opportunity Overview Best in class ethical and compliance standards Market share and diversification benefits Premium financial profiles and maintenance of group-wide m
Slide 22: PPHC now facilitating lobbying in every state in the USA and Canada
M&A 22 PPHC now facilitating lobbying in every state in the USA and Canada (helped by MultiState acquisition) Still aiming to expand further into select high-opportunity states PPHC + KP PPHC target markets for US expansion MultiState’s 50-state network coverage (As a primary component of its offeri
Slide 23: Short-term goal to establish Group presence in key global markets
M&A 23 Our short-term goal is to establish a Group presence in key global markets to unlock referral nexus into global policy budgets 1. 2020 data where 2021, 22 not available 2. “Unreported” (aka ‘shadow lobbying’ includes all fees paid and media invested to impact legislation, directly or indirect
Slide 24: KP Public Affairs (acquired Oct 2022)
Post-IPO Acquisitions 24 KP Public Affairs (acquired Oct 2022) Full-service state and local government relations leader in Sacramento, California, the biggest US state Three main lines of business 2021 by business line Lobbying/Advocacy 100%= $10.9m 93+ clients Servicing interests of corporations an
Slide 25: MultiState Associates (acquired March 2023)
Post-IPO Acquisitions 25 MultiState Associates (acquired March 2023) Full-service state and local government relations company across all US states and Canadian provinces Four main lines of business 2021 KPIs by business line Lobbying/Advocacy American Fair Credit 100%= $12.8m 321(*) $40.8k Lobbying
Slide 26: Conclusion
26 Conclusion
Slide 27: High government spending + risky political climate = strong demand
Market Conditions & Outlook 27 High government spending + risky political climate = strong demand Overview Strategic communications with financial, crisis, healthcare and tech specialization(s) are among the fastest growing sectors, with high demands for policy and regulatory expertise PR holding co
Slide 28: Summary: Why Invest in Public Policy Holding Company?
Conclusion 28 Summary: Why Invest in Building the future of public policy and advocacy Public Policy Holding communications Company? Strong Proven Attractive Attractive Strong Growth Business Financial Profile Dividend Prospects Large and growing Strong organic growth Up to 70% payout ratio of Marke
Slide 29: Case Studies
P P H Cc 4 Public Policy Holding Company Case Studies
Slide 30: Saving American Solar Jobs
Case Studies 30 Saving American Solar Jobs Challenge A Department of Commerce (DOC) investigation into solar panel imports from Southeast Asia posed a threat to the US solar industry. Solar projects planned for 2022 were put on hold while US solar companies awaited parts from abroad to complete thei
Slide 31: Giving the Hearing Impaired an Audio Boost
Case Studies 31 Giving the Hearing Challenge Impaired an Audio Boost In 2016, the Bose Corporation realised that they could make lower-cost, high-quality hearing aids which could be self-fit by the wearer and sold directly to consumers without the need for a prescription, state-by-state regulations,
Slide 32: Educating the Public on the Importance of Physician-Led Care
Case Studies 32 Educating the Public on Challenge the Importance of After years of scope of practice expansion by nurses and mid-level healthcare providers in California, the California Society of Anesthesiologists wanted to increase awareness about the Physician-Led Care importance of physician led
Slide 33: Guiding a Housing Non-Profit through the Legislative Process
Case Studies 33 Guiding a Housing Non- Challenge Profit through the Navigate Affordable House Partners, a client of Crossroads Strategies, is a mission-driven non- profit contracted to facilitate the Section 8 program in multiple states. In 2022, the U.S. Legislative Process Department of Housing an
Slide 34: Giving a Voice to the Outdoors in D.C.
Case Studies 34 Giving a Voice to the Outdoors in D.C. Challenge An outdoors-focused trade association wanted to elevate their brand in D.C. and become an influential player in passing legislation to strengthen America's public lands, waterways, and climate resiliency. The plan would also need to be
Slide 35: Securing Funding for a New England Economic Hub
Case Studies 35 Securing Funding for a New England Economic Hub Challenge Boston Logan International Airport, a major economic asset to both Massachusetts and the greater area of New England, was in need of major upgrades. The Airport’s infrastructure required modernization through both increasing i
Slide 36: Appendix
36 Appendix
Slide 37: Benefits of a Public Listing in London
Appendix - PPHC Summary 37 Benefits of a Public Listing in London Enhanced profile and access to capital, with employee retention and tax efficiency being key benefits Access to y Access to equity capital markets allows PPHC to most efficiently finance M&A opportunities with cash and equity - accele
Slide 38: PPHC Executive Team
Appendix - PPHC Executive Team 38 G. Stewart Hall, Chief Executive Officer Jill Kendrick, Chief Operating Officer Ron Starzman, VP – Human Resources y Began his career as Legislative Director to Senator y 20 years’ experience developing, implementing, and growing y Previously the university-wide hea
Slide 39: PPHC Board of Directors
Appendix - PPHC Board of Directors 39 G. Stewart Hall Bill Chess Zachary Williams Chief Executive Officer Chief Financial Officer Executive Director y Founder and Chairman of Crossroads y Previously COO and CFO of Ogilvy Public y Managing Partner at Forbes Tate Partners Strategies, which merged into
Slide 40: Public Policy Holding Company
P P H C | Public Policy Holding Company
Public Policy Holding Company — FY2022 Earnings Presentation on 6ix