Public Policy Holding Co., Inc. · LSE:PPHC
Public Policy — H1 2023 Earnings Presentation
30 slides from Public Policy's earnings presentation, September 2023
Slide 1: Interim Results Presentation
2023 Interim Results Presentation Year Ending Dec. 31, 2021 September 2023
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. 2023H1 Results II. Strategy and Highlights IV. M&A Strategy III. Financials 2021 V. Conclusion IV. Outlook 2022 VI. Appendix V. Q&A VI. Appendices
Slide 4: Presentation Team
Presentation Team 4 Presentation Team Stewart Hall Roel Smits Thomas Gensemer CEO CFO CSO
Slide 5: PPHC Summary
5 PPHC Summary
Slide 6: Growth in US Gov't spending and regulation has provided the environment for our industry
PPHC Summary 69 Growth in US Gov’t spending and A few key pieces of federal legislation (and a Supreme Court decision) have regulation has provided the provided the regulatory environment for today’s federal lobbying services and environment for our industry public affairs activities by corporations
Slide 7: We help clients manage the risks and compete for the opportunities within government policy
PPHC Summary 7 We help clients manage the risks and compete for the opportunities within government policy Seismic changes in impact of government…. …providing fertile ground for PPHC US Federal Gov’t Public Policy Risk Providing a comprehensive solution to clients, Spending $6.5T Mentions 330k co
Slide 8: PPHC competes in a highly-fragmented $17bn market (US)
PPHC Summary 8 PPHC competes in a highly-fragmented $17bn market (US) for strategic communications Government relations and policy advocacy Public affairs (non-lobbying PPHC’s core services communications) The market for regulated federal lobbying valued The market for US public at $3.7bn(1) relatio
Slide 9: PPHC operates seven complimentary, bi-partisan firms with deep roots in public policy
PPHC Summary 9 PPHC operates seven complimentary, bi-partisan firms with deep roots in public policy Government relations and policy advocacy Public affairs (non-lobbying)
Slide 10: PPHC has 1,200 active clients, including 40% of Fortune 100
PPHC Summary 10 PPHC has 1,200 active clients, including 40% of Fortune 100 across all corporate sectors Government relations and policy advocacy Public affairs (non-lobbying) Integrated services
Slide 11: PPHC now outranks other lobbying firms; competes with leading communications firms
PPHC Summary 11 PPHC now outranks other lobbying firms; competes with leading communications firms Government relations and policy advocacy Public affairs (non-lobbying) Lobbying Firm 2022 Revenue (in $m) $64.4M 2022 Brownstein Hyatt Farber Schrek LLP 60.6 Akin Gump Strauss Hauer & Feld LLP 53.2 (PP
Slide 12: How does the PPHC Platform add value?
PPHC Summary 14 How does the PPHC Platform add value? PPHC’s Platform for Operations PPHC maintains separately branded and managed operating companies PPHC offers conflict mitigation, access to growth capital, operational efficiencies and cross referral Integrated Business Services opportunities
Slide 13: 2023H1 Results
P P H Cc | Public Policy Holding Company 2023H1 Results
Slide 14: 2023H1 Results – Highlights
2023H1 Results – Highlights 14 Strong revenue growth and profitability underpinning cash generation and dividend payment Revenue Underlying EBITDA1 Underlying Net Income1 $65.7m 2023H1: $16.9m +17% 2022H1: $14.4m 2023H1: $12.7m +18% 2022H1 : $10.7m +27% +4% (organic) Underlying EPS – fully diluted D
Slide 15: PPHC operates across three segments
PPHC Summary 15 PPHC operates across three segments Government relations and policy advocacy Diversified Services Public affairs $46.5m $2.7m $16.5m 2022H1: $37.6m 2022H1: $-- m 2022H1: $14.2m 71% of total 4% of total 25% of total +24% growth n/a growth +17% growth “resilient and profitable” “high g
Slide 16: 2023 H1 Operational highlights
2023H1 Results – Highlights 16 2023 H1 Operational highlights Our Clients Our Colleagues Our Community c. 1200 322 Clients served across group FTE’s 50+ Philanthropic partnerships with 384 c. 75% causes and NGOs, including pro- bono services Clients $100k+ in 2022FY Employee ownership ESG 85% / 80%
Slide 17: A strong track record of growth: 2018 to date
2023H1 Results – Highlights 17 A strong track record of growth: 2018 to date Revenue Underlying EBITDA 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 assumed additional 5%
Slide 18: Short term and mid-term Outlook
2023H1 Results – Highlights 19 Short term and mid-term Outlook The strong performance delivered in H1 has set the Group up well for the remainder of 2023: The Group is on track to meet full year market expectations. Revenue growth between 20% and 30%, with the organic growth rate expected to be simi
Slide 19: P&L
2023H1 Financial Results 28 P&L USD (‘000) 2023H1 2022H1 Change Commentary Government Relations 46,530 37,571 Public Affairs 16,507 14,167 Underlying EBITDA margin of 25.8% (2022H1: 27.9%). Margin reduction was Diversified Services 2,675 anticipated and consequence of public company costs and platfo
Slide 20: Balance sheet
2023H1 Financial Results 29 Balance sheet USD (‘000) 30 June 2023 30 June 2022 Current Assets Commentary Cash 4.505 18,058 Accounts Receivable, Net 17,637 11,737 Amounts due from related parties 1,039 0 Net debt at period-end $9.1m, consisting of $13.6m debt less $4.5m cash Prepaid Expenses and Othe
Slide 21: Cash Flow
2023H1 Financial Results 30 Cash Flow USD (‘000) 2013H1 2013H1 Net Loss (3,496) (5,841) Commentary Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities Depreciation 58 58 Amortization Expense - Customer Relationships 1,924 942 Cash reduction $16.7m was function of
Slide 22: Our buy-and-build strategy focused on presence in key geographies
22 M&A Our buy-and-build strategy focused on presence in key geographies and offering deep sector expertise to help global corporate clients manage risk and opportunity
Slide 23: Acquisitions since IPO
M&A Acquisitions since IPO Joined October 2022 Founded in 1996, KP has decades of experience and proven success in the advocacy and public affairs business. KP is consistently ranked as one of California’s top lobbying firms. Current clients include many Fortune 500 corporations, tech startu
Slide 24: Our current M&A pipeline has dozens of opportunities
M&A 24 Our current M&A pipeline has dozens of opportunities in initial or active conversations (US, UK and Europe) Criteria for M&A opportunities Best in class ethical and compliance standards Market share and diversification benefits Premium financial profiles and maintenance of group-wide ma
Slide 25: PPHC facilitating lobbying in every state in the USA and Canada
M&A 25 PPHC facilitating lobbying in every state in the USA and Canada. Select high-opportunity states remain for M&A PPHC + KP PPHC target markets for US expansion MultiState’s 50-state network coverage (As a primary component of its offering, MultiState connects clients with a network of external
Slide 26: Our short-term goal is to establish a Group presence in key global markets
M&A 26 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 27: Conclusion
27 Conclusion
Slide 28: High government spending + risky political climate = strong demand
Market Conditions & Outlook 28 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 29: Summary: Why Invest in Public Policy Holding Company?
Conclusion 29 Summary: Why Invest in Public Building the future of public policy and advocacy Policy Holding Company? communications 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 30: Public Policy Holding Company
P P H C | Public Policy Holding Company
Public Policy Holding Company — H1 2023 Earnings Presentation on 6ix