Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — JP Morgan High Yield & Leveraged Finance Conference 2016
23 slides from Stagwell's conference presentation, Feb 29, 2016
Slide 1: JP Morgan High Yield & Leveraged Finance Conference
JP Morgan High Yield & Leveraged Finance Conference February 29, 2016
Slide 2: Forward Looking Statements & Other Information
2 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “ 2016 Financial Outlook”, contains forward - looking statements . The Company’s representatives may also make forward - looking statements orally from time to time . Statements in this presentation that are not histor
Slide 3: Who We Are
3 WHO WE ARE MDC is a network of 50+ marketing and communications firms that leverage technology, data analytics, insights and strategic solutions to drive meaningful returns on marketing investment
Slide 4: MDC Today
4 MDC TODAY » One of the fastest - growing and most influential marketing and communications networks in the world, with the most powerful, globally recognized brands in the industry » Operating units in the United States, Canada, Europe, Asia and Latin America, and over 1,700 clients worldwide, and
Slide 5: Our Unique Advantage
5 OUR UNIQUE ADVANTAGE The Modern Global Model Built for the Digital World Unencumbered creativity Cutting edge technology MDC CULTURE Talent, Entrepreneurism, Innovation & Invention Unburdened by legacy brick and mortar investments. Silo - free means no competing visions or P&Ls. Digital capabiliti
Slide 6: Powerful Agency Brands
6 POWERFUL AGENCY BRANDS Specialized Expertise: Over 50+ Creatively Driven Agencies Advertising, Branding, and Design Digital, Social, Interactive, E - commerce Customer Engagement and Experiential Marketing Media Planning, Buying and Research Public Relations, Strategic Communications, Investor Rel
Slide 7: Best in Class Creative & PR Agencies
7 BEST IN CLASS CREATIVE & PR AGENCIES Recognition: Acknowledged for their award - winning work Industry Recognition Consumer Recognition YouTube Crowns its Ad of the Decade Turkish Airlines. “The Selfie Shootout” – CPB Most Watched SuperBowl Ad – 3 Years in a Row Budweiser: “Lost Dog” (2015), “Pupp
Slide 8: World Class Client Base
8 WORLD CLASS CLIENT BASE Significant white space <3 % of US market share and 5% share of clients’ wallet Communications / Media Retail Food & Beverage Consumer Products Technology Automotive Financials Healthcare
Slide 9: Sustained Market Share Gains
9 SUSTAINED MARKET SHARE GAINS Outperformance in good times and bad, and despite more difficult comparisons Organic Revenue Growth: MDC Partners 1 vs. Peers 2 9 Year Average 2007 through 2015 MDC 10.5% Peers 2.8% Fastest growing global holding company… Organic growth ~ 4x more than peers over last 9
Slide 10: Robust New Business Trends
10 ROBUST NEW BUSINESS TRENDS 1 Includes select wins in the public domain only Recent New Clients 1 Net New Business Trend 2 2 Excludes discontinued operations
Slide 11: International Expansion Is a Key Driver
11 INTERNATIONAL EXPANSION IS A KEY DRIVER “Brands without Borders”: hub and spoke model to cover global accounts 9% of MDC revenue is outside North America (at Q4 2015) vs. 55 - 60 % of global ad spend 2012 2013 2014 2015 % of MDC revs 4.5% 5.3% 6.5% 8.5% Int’l Organic Growth +53% +31% +28% +32% Ke
Slide 12: Media Buying Represents a Strong Growth Catalyst
12 MEDIA BUYING REPRESENTS A STRONG GROWTH CATALYST T echnology and data are democratizing Media Media makes up >10% of MDC versus estimated 20 - 25% of other Holdco’s
Slide 13: 2015 Financial Highlights
13 2015 FINANCIAL HIGHLIGHTS SUPERIOR FINANCIAL PERFORMANCE ACROSS ALL KEY METRICS – INDUSTRY LEADING ORGANIC REVENUE GROWTH, STRONG EBITDA GROWTH, SOLID CASH GENERATION AND LEVERAGE REDUCTION » Industry - leading organic revenue growth of 7.1% » Revenue increased 8.4% to $1.33 billion from $1.22 bi
Slide 14: MDC Has Come a Long Way
14 MDC HAS COME A LONG WAY D iversification of risk as we have become a larger company 2009 1 2015 » Revenue $546 million $1.07 billion $1.33 billion » Adjusted EBITDA $70 million $118 million $198 million » CFO 2 less Capex $54 million $58 million $141 million » Contracted retainer based revenue 63
Slide 15: Strong Long Term Performance and 2016 Financial Guidance
15 STRONG LONG TERM PERFORMANCE AND 2016 FINANCIAL GUIDANCE Revenue Adjusted EBITDA Note: See appendix for definitions of non - GAAP measures; results shown exclude discontinued operations Adjusted EBITDA Available for General Capital Purposes % margin 14.0% 13.6% 10.3% 11.7% 14.4% 14.7% 14.9% 16.4%
Slide 16: Diversified and Stable Revenue Model
16 DIVERSIFIED AND STABLE REVENUE MODEL Revenue Mix Ongoing shift to retainer - based contracts % of Revenue by Client Sector, 2015 1 Largest client ~4% of revenue (% of Total Revenue) 2009 2015 Top 10 Customers 49% 24% Top Customer 16% 4% 1 Excludes discontinued operations
Slide 17: Cash Generation
17 CASH GENERATION (1) Adjusted EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensa tion, acquisition deal costs, deferred acquisition consideration adjustments, profit distributions from affiliates, and other items. (2) Capital
Slide 18: Financial Policy
18 FINANCIAL POLICY » Maintain solid liquidity position ▪ Access to $325 million revolving credit facility for growing working capital and other general corporate purposes, subject to available borrowings » No significant near term acquisitions currently in the pipeline ▪ Smaller opportunistic tuck
Slide 19: Appendix
19 APPENDIX
Slide 20: Definition of Non-GAAP Measures
20 DEFINITION OF NON - GAAP MEASURES Adjusted EBITDA: Adjusted EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjustments, one time incentive compensation, pro
Slide 21: Adjusted EBITDA Schedule 2015
21 ADJUSTED EBITDA SCHEDULE For the Twelve Months Ended December 31, 2015 Advertising and Communications Corporate Total Revenue 1,326,256$ -$ 1,326,256$ Net loss attributable to MDC Partners Inc. (37,357)$ Adjustments to reconcile to Operating profit (loss): Net income attributable to the noncontro
Slide 22: Adjusted EBITDA Schedule 2014
22 ADJUSTED EBITDA SCHEDULE * Adjusted EBITDA is a non - GAAP measure, but as shown above it represents operating profit (loss) plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjustments, distributions from non - consolidate
Slide 23: MDC Partners contact and investor relations
MDC Partners Innovation Center 745 Fifth Avenue, Floor 19 New York, NY 10151 www.mdc - partners.com www.twitter.com/mdcpartners Investor Contact : Matt Chesler, CFA Head of Investor Relations (646)412 - 6877 mchesler@mdc - partners.com
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