Slide 1: Preliminary Results: April 2022
NEXT15 PRELIMINARY RESULTS : APRIL 2022 NEXT15 NEXT15
Slide 2: Agenda
AGENDA Results summary and introduction Business progress Engine & Mach49 updates Insights & observations Long-term strategy update ESG update Numbers in detail NEXT15 2
Slide 3: Vision & Mission
VISION & MISSION We believe our future lies at the intersection of technology, business consulting and digital marketing - we call this growth consulting. We are designing and building a global growth consultancy capable of working with the very best companies and entrepreneurs to build long-term su
Slide 4: Introduction to Next15
INTRODUCTION TO NEXT15 Next 15 operates across four divisions and has offices Our customers include: across the world. Our divisions are: 1. Delivering business insights through data analytics and online research 2. Optimizing digital brand assets to drive long term customer engagement 3. Optimizing c
Slide 5: Results Highlights
RESULTS HIGHLIGHTS Net revenue up 36% Adjusted operating Margin performance Adjusted diluted EPS (26.1% organically) to profit up 60% to of 21.9% (2021: 18.5%) - up 47% to 59.7p (2021: £362.1m (2021: £266.9m) £79.3m (2021: £49.5m) benefitted from late Q4 40.7p) projects and US $ strength Strong perfor
Slide 6: Business Progress
BUSINESS PROGRESS CLIENT WINS: ACQUISITIONS: PRODUCTS: BOARD UPDATE: Aston Martin, Boots, Engine UK: MHP Mischief, Prism - automated digital Strengthened with new Toptal and Duolingo Creative & Transformation DD NED and COO joining the Audience 360 - customer board Shopper Media Group activation usi
Slide 7: Engine Update
ENGINE UPDATE All three businesses have made the transition well and are ahead of expectations (albeit early days) Client wins post-deal include: Health Education England (Transform), Henkel (joint ODD/Creative win), Alexion Pharmaceuticals (MHP) Work on rebranding progressing Cost savings marginall
Slide 8: Mach49 Contract Win
MACH49 CONTRACT WIN ● Wholly owned subsidiary Mach49 enters 5-year strategic alliance with yet to be formally announced global technology and digital company ● Contract is to create and launch a series of innovation-led, technology-driven, sustainable ventures around the world ● Over the contract te
Slide 9: Insights & Observations
INSIGHTS & Digital transformation journey still in its infancy for many customers - anticipate multi-year cycle. OBSERVATIONS Move towards tech-enabled subscription/fixed fee services is starting to accelerate. Specialism is beating scale. Specialism plus scale is the long term formula WFA is new nor
Slide 10: Long-Term Strategy Update
LONG-TERM STRATEGY UPDATE Opportunities to make larger acquisitions/investments to drive scale especially in underweight/high growth areas of the business such as: ● APAC ● Issues consulting ● EMEA ● eCommerce ● US digital paid media ● US data ● ABM ● Demand/Lead gen Significant investments in H2 wer
Slide 11: Segmental Performance
SEGMENTAL PERFORMANCE Net Revenue £42.1m £187.6m £79.9m £52.5m % of Total Net Revenue 11.6% + 51.8% + 22.1% + 14.5% INSIGHT ENGAGE DELIVERY TRANSFORM Margin - 21.4% Margin - 21.6% Margin - 35.6 % Margin - 29.0% Organic growth - 18.6% Organic growth - 15.7% Organic growth - 40.0% Organic growth - 99.
Slide 12: ESG Update
ESG UPDATE B Corp certification - Pushing for Q4 2022 Measuring our carbon footprint Assessing the carbon impact of the work we do for our clients DE&I action plan in place across the business after major review using external consultants Introduced balanced scorecard reporting for all businesses Eth
Slide 13: Numbers in Detail
NUMBERS IN DETAIL PRELIM RESULTS : APRIL 2022 NEXT15 NEXT15 NEXT 15 13
Slide 14: Adjusted P&L
ADJUSTED P&L £M 2022 2021 GROWTH % Data here Net revenue 362.1 266.9 36% Organic revenue growth/(decline) 26.1% (3.4)% Operating profit 79.3 49.5 60% Operating margin 21.9% 18.5% Profit before tax 79.3 49.1 62% Tax (17.2) (9.9) Minorities (3.6) (1.0) Profit after tax 58.5 38.2 53% Diluted EPS (p) 59.7
Slide 15: Revenue Bridge
REVENUE -14.3 BRIDGE 39.8 (5.4%) 362.1 69.7 14.9% 266.9 26.1% Revenues £m 15 NEXT15
Slide 16: Segmental
SEGMENTAL Operation Net revenue Organic growth Operating Margin Margin 2022 Profit 2022 2021 £M £M Customer Insight 42.1 18.6% 9.0 21.4% 14.7% Customer Engage 187.6 15.7% 40.4 21.6% 22.1% Customer Delivery 79.9 40.0% 28.5 35.6% 30.7% Business Transformation 52.5 99.9% 15.2 29.0% 22.0% Head Office - - (
Slide 17: Cash Flow
CASH FLOW £M 2022 2021 Inflow from op activities 92.7 66.4 Working capital 0.2 6.5 Net inflow from operations 92.9 72.9 Tax (14.1) (8.4) Net capex (5.9) (4.1) Acquisitions (28.2) (23.6) Net interest and dividends paid (11.0) (0.7) Repayment of lease liabilities (12.0) (12.6) Exchange (loss) / gain on
Slide 18: Adjustments
ADJUSTMENTS £M 2022 2021 Adjusted profit before tax 79.3 49.1 Restructuring - (2.7) Property impairment (0.2) (10.0) Deal costs (0.5) (0.4) Charge for one-off employee incentive schemes (5.9) (2.4) Acquisition accounting related costs (151.9)* (36.3) Gains on investment activities 0.5 - Furlough (1.4
Slide 19: Forecast Commitments
FORECAST COMMITMENTS 31 Jan 2022 £M FY 2022 - FY 2023 36.0 FY 2024 30.8 FY 2025 45.8 FY 2026 39.7 FY 2027 31.5 FY 2028 31.3 Total 215.1 19 NEXT15
Slide 20: Outlook
OUTLOOK BUSINESS: Organic growth will remain strong Good acquisition pipeline PRODUCT: Progress being made on productization and client integration Using strong performance as opportunity to invest in product development OPERATIONAL: Progress on office sub-lets ahead of schedule Staff cost increases a
Slide 21: Appendices
APPENDICES NEXT15 NEXT15 NEXT 15 21
Slide 22: Regional
REGIONAL Operation Net revenue Organic Operating Margin Margin 2022 growth Profit 2022 2021 £M £M US 199.3 33.2% 58.3 29.3% 24.7% UK 137.5 18.3% 30.9 22.5% 21.1% APAC 15.2 11.9% 1.4 9.3% 17.1% EMEA 10.1 21.3% 2.5 24.9% 23.2% HEAD OFFICE - - (13.8) - - Total 362.1 26.1% 79.3 21.9% 18.5% 22 NEXT15
Slide 23: Balance Sheet Summary
BALANCE SHEET SUMMARY £M 31 January 2022 31 January 2021 Intangible assets 183.1 163.8 Non-current assets 83.1 52.3 Current assets 178.6 105.6 Non-current liabilities (203.0) (93.1) Current liabilities (180.3) (111.7) Net assets 61.5 116.9 Share capital 2.3 2.3 Reserves 57.6 114.7 Minorities 1.6 (0.