Pebble Group Plc · LSE:PEBB
Pebble — The Pebble Group — H1 2021 Earnings Presentation
36 slides from Pebble's earnings presentation, Sep 7, 2021
Slide 1: Half Year Results 2021
7 September 2021 Half Year Results 2021 Building brands. Growing relationships. Strengthening businesses.
Slide 2: Introduction
INTRODUCTION Chris Lee Claire Thomson CEO CFO 2
Slide 3: Facilisgroup and Brand Addition overview
Facilisgroup is focused on transforming Brand Addition provides full-scale promotional products the promotional products industry with services that help global brands build culture, awareness technology that enables customers to and meaningful connections. We extend our clients’ benefit from signif
Slide 4: Highlights HY 21
Highlights HY 21 § The recovery in HY 21 has been strong § Group revenues at £46.8m, 39% ahead of HY 20 (£33.6m) and slightly lower than HY 19 (£48.1m) Facilisgroup Brand Addition 27% USD growth in Annual Recurring Revenue compared to HY 20 Significant growth in Consumer Promotions revenue expected
Slide 5: Highlights HY 21, KPIs
THE PEBBLE GROUP Highlights HY 21, KPIs Revenue Adjusted EBITDA1 Adjusted EPS2 Net cash / (debt) +39.3% +73.5% +1.13p -£6.1m £46.8m £4.4m 1.08 £1.9m £33.6m £2.6m 2020 2021 (0.05) £(4.2)m 2020 2021 2020 2021 2020 2021 1 Adjusted EBITDA is defined as operating profit adjusted to add back depreciation
Slide 6: Key financial dynamics
THE PEBBLE GROUP Key financial dynamics High EBITDA Revenue by business HY21 % EBITDA by business HY 21 % margins of 12% Facilisgroup 45% 55% 88% Brand Addition Brand Addition Facilisgroup Facilisgroup Commentary Commentary § Facilisgroup subscription-based revenue § High EBITDA margins of Facilisgr
Slide 7: Income statement HY
THE PEBBLE GROUP Income statement HY 21 £’m HY 21 HY 20 HY 19 FY 20 Revenue 46.8 33.6 48.1 82.4 Strong recovery, Gross profit 17.2 13.6 17.4 31.0 Detail in segmental growth in People & overhead (11.6) (10.3) (11.7) (19.8) analysis Facilisgroup ARR, Adjusted EBITDA pre-Head Office 5.6 3.3 5.7 11.2 Br
Slide 8: Cash flow HY 21
THE PEBBLE GROUP Cash flow HY 21 £’m HY 21 HY 20 HY 19 FY 20 Adjusted EBITDA 4.4 2.6 5.3 9.8 Brand Addition in year working capital cycle - £2.5m incremental Consumer Promotions Movement in working capital excluding IPO accruals (12.3) (4.4) (0.7) 1.7 - £5.4m growth from increased trading Capital ex
Slide 9: Balance Sheet HY 21
THE PEBBLE GROUP Balance Sheet HY 21 £’m HY 21 HY 20 HY 19 FY 20 Non-current assets 63.2 57.5 56.7 63.6 Goodwill and intangibles: £44.7m, Software: £9.7m, PPE: £8.5m, DT asset £0.3m Inventories 15.6 12.4 10.6 12.1 HY 21 includes £2.5m incremental Consumer Promotions en route to client Trade & other
Slide 10: Facilisgroup is focused on transforming the promotional products industry
Facilisgroup is focused on transforming the promotional products industry with technology that enables customers to benefit from significant business efficiencies and supply chain advantages
Slide 11: Segmental Analysis HY 21
THE PEBBLE GROUP Segmental Analysis HY 21 £’m HY 21 HY 20 HY 19 FY 20 Commentary 5.4 4.8 4.1 9.3 § +15% ARR in GBP, +27% in USD home currency Recurring Revenue Other Revenue 0.2 0.3 0.5 0.5 Total Revenue 5.6 5.1 4.6 9.8 People & overhead (2.5) (2.2) (2.2) (3.8) § Investment in team to support growth
Slide 12: Recurring Revenues
THE PEBBLE GROUP Recurring Revenues High visibility of Revenues £’m Revenues $’m recurring revenues 4.7 6.0 6.1 with a loyal and 4.7 5.7 4.3 growing Partner 3.4 4.5 7.8 5.6 6.4 5.1 4.6 5.9 (customer) base 2.9 3.1 3.7 4.2 FY 17 FY 18 FY 19 FY 20 HY 21 FY 17 FY 18 FY 19 FY 20 HY 21 H1 H2 H1 H2 Comment
Slide 13: Partner Activity
THE PEBBLE GROUP Partner Activity Through July and Partner numbers # Gross Merchandise Value $’m Preferred Supplier Purchases $’m Aug 2021 GMV is 190 + 7 482 136% of 2020 and 441 139 141 388 175 120 338 149 141% of 2019 102 119 127 249 467 380 140 342 122 116 300 286 107 91 2017 2018 2019 2020 End F
Slide 14: Partner Activity: Retention
THE PEBBLE GROUP Partner Activity Retention Partner numbers # Partners bridge # +7 remains strong, 190 + 7 +19 -2 M&A activity 175 -1 -1 within Partner 149 119 127 190 group has developed 2017 2018 2019 2020 End Aug 21 175 § New: Additional Partners implemented § Acquired within FG: Partners busines
Slide 15: Progress of ecommerce product
THE PEBBLE GROUP Progress of ecommerce product The Opportunity Timeline User numbers # Pop-Up Store Complex Stores Our all-in-one Wider North American Promotional products ecommerce product Pop-Up Stores APR 2021 market Early Release We are building a platform that enables our Integration Partners t
Slide 16: Our growth vision
THE PEBBLE GROUP Our growth vision Target market Product offering Recurring Revenues Growth, driven by Distributor GMV $’m Technology subscriptions Marketing Fund Other services three technology Order workflow, Effective day to products distributors < $2m Distributors day ordering ✓ ✓ ✓ < $2M GMV to
Slide 17: Milestones and internal aspirations
THE PEBBLE GROUP Milestones Internal aspirations 2020 (A) 2021 2022 2023 2024 Our internal Partner/client aspirations to $50m numbers 175 205 330 575 950 # Annual Recurring Gross Revenues Merchandise Value 1.0 1.1 1.2 1.5 1.9 $50m Annual Recurring $’bn Revenues Spent with Preferred 0.3 0.3 0.4 0.5 0
Slide 18: Brand Addition provides full-scale promotional products services
Brand Addition provides full-scale promotional products services that help global brands build culture, awareness and meaningful connections. We extend our clients’ values in thoughtful, sustainable, globally conscious ways to create branded moments that people love
Slide 19: Segmental Analysis HY 21
THE PEBBLE GROUP Segmental Analysis HY 21 £’m HY 21 HY 20 HY 19 FY 20 Commentary Revenue 41.1 28.5 43.6 72.6 § £7.0m growth in Consumer Promotions, £5.4m recovery in Corporate Programmes Gross profit 11.6 8.6 12.8 21.2 § Short term impact costs of Brexit, freight pricing and People & overhead (9.1)
Slide 20: Order receipt and working capital dynamics
THE PEBBLE GROUP Order receipt and working capital dynamics Typical calendar Typical annual order cycle Typical working capital cycle year order receipt Brand Addition Total cycle and working July / Aug High Corporate Programmes capital dynamics in Consumer Promotions Brand Addition Low Jan Dec Dec
Slide 21: FY 21 expected to be significantly ahead of FY 20
‘FY 21 expected to be significantly ahead of FY 20 and slightly ahead of FY 19’ £98m £73m £99m £106m FY 19 7 1. Consumer Promotions Total Revenues 69 7 55 - Significant growth in 2021 vs 2020 and 2019 £’m 48 - Existing clients consolidating spend with 3 Brand Addition 70% 80% 41 2019 2019 2. Corpora
Slide 22: Revenue Diversity
THE PEBBLE GROUP Revenue Diversity Strong sectors, Revenue by client sector % Revenue by destination % across multiple 4% 8% 7% HY 21 14% HY 21 geographies 7% 12% HY 20 11% 28% HY 20 23% 18% 11% 38% 22% 20% 16% 16% 36% 42% 29% 38% Engineering Financial Services UK Europe Health, Beauty, FMCG Technol
Slide 23: Environmental, Social and Governance (ESG)
THE PEBBLE GROUP Environmental, Social and Governance (ESG) ESG Progress ESG Roadmap ESG report to be published - October 2021 • Details our bespoke ESG framework & Designed and developed bespoke ESG approach approach • ESG initiatives and progress towards goals. Created a reporting framework based
Slide 24: Group Outlook
Group Outlook § The highly recurring nature of the revenues at Facilisgroup and the value of orders received to date at Brand Addition leads the Board to be confident that FY 21 performance will be at least in line with market expectations Facilisgroup Brand Addition FY 21 USD ARR growth compared to
Slide 25: Financial Guidance
7 September 2021 Half Year Results 2021 Financial Guidance Building brands Growing relationships Strengthening businesses
Slide 26: Financial Guidance
THE PEBBLE GROUP Financial Guidance § CAPITAL EXPENDITURE: § CURRENCY RATES: (excluding amounts capitalised under IFRS 16) Actual Actual YTD Actual Actual Est £:US$ 2019 2020 2021 £m 2019 2020 2021 Income Statement (average rate) 1.28 1.28 1.38 Tangible 0.6 0.8 0.8 Balance Sheet (year end rate) 1.32
Slide 27: Business model and Case Studies
7 September 2021 Half Year Results 2021 Business model Case Studies Building brands Growing relationships Strengthening businesses
Slide 28: Servicing the promotional product industry
THE PEBBLE GROUP Our business model Servicing the promotional product industry Facilisgroup § Technology platform for mid-sized distributors in North America, enabling business efficiency Brand, End Suppliers Distributors § Consolidates spend to create meaningful Manufacturers and customer supply ch
Slide 29: Our business model, Facilisgroup
THE PEBBLE GROUP Our business model, Facilisgroup Recurring revenues Facilisgroup Subscriptions for Order Workflow (~75% ARR FY 20) CRM, Product Search and Order processing Technology and Services efficiently manages the enquiry to invoice workflow. Fees are fixed at the beginning of each year based
Slide 30: Our business model, Brand Addition
THE PEBBLE GROUP Our business model, Brand Addition Our business model Contracted, with global brands Win, Grow, Retain, Repeat § Global brands Suppliers Brand, End Under contract, supporting brand Brand Addition Working excitement, values and integrity Europe, Asia, North America customer Capital L
Slide 31: Case Studies
THE PEBBLE GROUP Case Studies 31
Slide 32: Syncore: Features, Benefits, Success
Many promotional product distributors are entrepreneurial, owner-managed businesses They are looking for the tools, transparency, and insights necessary to have the confidence and ability to scale their businesses Syncore provides this solution for business owners and is our order workflow product,
Slide 33: Commercio: Features, Benefits, Opportunity
Commercio is our all-in-one ecommerce product, developed from the software assets acquired in December 2020, and launched to Partners in 2021. We intend to build a platform that enables our Partners to build and operate any type of ecommerce store while providing management tools that deliver a smar
Slide 34: Case Studies
THE PEBBLE GROUP Case Studies 34
Slide 35: Corporate Programme, Case Study
Corporate Programme, Case Study. Global companies from around the world trust Brand Addition to support their ecommerce and special event needs with our full suite of capabilities to develop creative, curated, and bespoke promotional products to create meaningful branded and physical connections to
Slide 36: Consumer Promotions, Case Study
Consumer Promotions, Case Study. Leading Consumer Packaged Goods and Fast Moving Consumer Goods companies turn to Brand Addition to create premium gift packaging, irresistible accessories, seasonal gifts, and amazing point of sale items to drive consumer engagement and ultimately sales of their prod