S4 Capital Plc · LSE:SFOR
S4 Capital — FY2024 Earnings Presentation
43 slides from S4 Capital's earnings presentation, Mar 24, 2025
Slide 1: 2024 Results
S4 Capital plc 2024 Results 2024 Results 24 March 2025
Slide 2: Contents
S4 Capital plc 2024 Results Contents 1. Results 2. Business Momentum 3. Artificial Intelligence 4. Summary and Outlook 5. Q&A 6. Appendix
Slide 3: Results
S4 Capital plc 2024 Results 3
Slide 4: Financial headlines
S4 Capital plc 2024 Results 4 Financial headlines Net revenue1 Operational EBITDA3 Operational EBITDA margin3 £754.6m £87.8m 11.6% -13.6% reported -6.3% reported vs. 10.7% prior year reported -11.0% like-for-like2 -0.6% like-for-like2 vs. 10.4% prior year like-for-like2 Adjusted operating profit4 Ad
Slide 5: Profit or loss
S4 Capital plc 2024 Results 5 Profit or loss ● Net revenue declined 13.6% on a reported basis, or 11.0% like-for-like, 2024 20232 Change Change £m £m Reported Like-for-like reflecting lower spend on operating expenses, including marketing, from technology clients, who are investing in AI capacity, a
Slide 6: Net revenue by practice and geography
S4 Capital plc 2024 Results 6 Net revenue by practice and geography ● Content’s net revenue declined reflecting ongoing caution Net revenue by geography and lower activity with some of our larger technology clients. Focus on reinvigorating growth continues ● Data & Digital Media saw growth in the pe
Slide 7: Operational EBITDA by practice
S4 Capital plc 2024 Results 7 Operational EBITDA by practice ● Content’s operational EBITDA improved to £48.7 million, with 2024 2023 Change Change £m £m Reported Like-for-like operational EBITDA margin up 290 bps like-for-like, despite Content 475.5 528.9 (10.1%) (7.4%) lower net revenue, due to th
Slide 8: Debt and balance sheet
S4 Capital plc 2024 Results 8 Debt and balance sheet ● 2024 year end net debt £142.9 million (versus £180.8 million at December 2024 2023 Restated1 2023) reflecting a focus on working capital and tight cost management during £m £m the year Intangible assets 706.4 1,072.9 Right-of-use assets 34.7 45.
Slide 9: Cash flow
S4 Capital plc 2024 Results 9 Cash flow ● Capital expenditure was primarily IT infrastructure 2024 2023 £m £m ● Slight increase in interest paid due to higher interest rates on the Operational EBITDA 87.8 93.7 term loan Capital expenditure1 (7.5) (10.2) Interest and facility fees paid (27.0) (26.7)
Slide 10: 2025 Guidance
S4 Capital plc 2024 Results 10 2025 Guidance Net revenue Operational EBITDA Operational EBITDA weighting Comparatives for the first quarter expected Targeted to be broadly similar Targeted to be broadly similar to be difficult to 2024 to 20241 2025 expected to be heavily second half Clients expected
Slide 11: Business Momentum
S4 Capital plc 2024 Results 11
Slide 12: S4 Capital was founded on 4 core principles
S4 Proprietary & Confidential 12 S4 Capital plc 2024 Results S4 Capital was founded on 4 core principles: FASTER - Agile working methodology Purely - More responsive, less Digital bureaucracy - Entrepreneurial culture BETTER - Always focussed on the right - Focussed on digital marketing solution with
Slide 13: The Company expanded rapidly from 2018-22
S4 Proprietary & Confidential 13 S4 Capital plc 2024 Results The Company expanded rapidly from 2018 - 22 Audit Issues MediaMonks £74m Equity Raise £100m Equity Raise Circus Mondelez Delay FY21 Estee Lauder joins S4Capital Second Acquisition Firewood Merger Merger Client Win Jam3 Merger Results Client
Slide 14: Strong central Finance function with controls and governance
S4 Proprietary & Confidential 14 S4 Capital plc 2024 Results We have built a strong central Finance function with the appropriate controls and governance 2021 2022 2024 Continued good progress confirmed by a smooth and 2021 Audit issues with financial controls, particularly accelerated audit. This was
Slide 15: Business challenges impacted growth and margins in 2023/4
S4 Proprietary & Confidential 15 S4 Capital plc 2024 Results Business challenges impacted growth and margins in 2023/4. Tech 1 Company cost “Whopper 2 Clients” 3Macro economic 4 M&A Activity 5 Staff cost cutting under pressure pressure paused ratio Tech platforms reduced High interest rates and Our M&
Slide 16: We addressed these challenges to rebuild our foundation for growth
S4 Proprietary & Confidential 16 S4 Capital plc 2024 Results We addressed these challenges to rebuild our foundation for growth Tech Company cost Talent 1 2 Innovation and 3 New business 4 Integration 5 investment cutting - investment in AI wins focus moderating Tech platforms continued to Monks.Flow
Slide 17: Operational Excellence programme
S4 Proprietary & Confidential 17 S4 Capital plc 2024 Results We are in the midst of an Operational Excellence programme to continue improving personnel, direct & indirect costs as a % of net revenue Centered around 3 pillars Growth Growth Productivity Productivity Profitability Profitability ● Pipeline
Slide 18: A strong talent base and a simple structure
S4 Proprietary & Confidential 18 S4 Capital plc 2024 Results A strong talent base and a simple structure S4 Capital Marketing Services Technology Services Clients, Growth & Innovation
Slide 19: Our client portfolio
S4 Capital plc 2024 Results 19 Our client portfolio FY2024 Client Categories FY2023 Client Categories Technology 43% Technology 45% FMCG 10% FMCG 10% Financial 11% Financial 7% Auto 8% Auto 8% Retail 4% Retail 5% Media & Ent 4% Media & Ent 4% Fashion & Lux 5% Fashion & Lux 7% Agency 3% Agency 2% Oth
Slide 20: A compelling portfolio of clients
S4 Capital plc 2024 Results 20 A compelling portfolio of clients Average revenue per client (£m) Client Revenue 2024 2023 Number of % of Cumulative Number of % of Cumulative clients Revenue % clients Revenue % > £10m 9 45% 45% 16 55% 55% £5–10m 17 14% 59% 13 9% 64% £1–5m 81 20% 79% 79 16% 80% £0.1–1
Slide 21: Four killer apps underpinned by Data and Technology
S4 Proprietary & Confidential 21 S4 Capital plc 2024 Results We solve the biggest client problems with our 4 killer apps, underpinned by Data and Technology REAL-TIME ORCHESTRATION GLASS BOX DIGITAL BUSINESS BRANDS PARTNER MEDIA TRANSFORMATION Relevance Efficient Flow Working Spend Technology Innovatio
Slide 22: A clear strategy to drive growth from existing and new clients
S4 Proprietary & Confidential 22 S4 Capital plc 2024 Results A clear strategy to drive growth from existing and new clients GROW KEEP GET 1 Penetration Modern 2 Marketing 3 Market 4 Partner 5 Fish Where Playbooks Services Restage Co-Marketing the Fish Are Playbook for every scaled Focus on 3 winning
Slide 23: A collaboration for the ages
S4 Proprietary & Confidential 23 S4 Capital plc 2024 Results 10+ A collaboration years of partnership for the ages 750+ Google.Monks 220+ unique client 30+ points of contact daily 67+ countries Google teams and programs Google Brands
Slide 24: New model of 11th largest advertiser in North America
S4 Proprietary & Confidential 24 S4 Capital plc 2024 Results New model of 11th largest advertiser in As GM’s global ‘Foundational Agency’, we bring simplicity, consistency, scale and cost savings North America to how content is created through technology (Adobe), automation (AI) and best in class dig
Slide 25: Artificial Intelligence
S4 Capital plc 2024 Results 25
Slide 26: Monks
Monks Proprietary & Confidential 26
Slide 27: Let's break it down
Monks Proprietary & Confidential 27 Let’s break it down
Slide 28: Intelligence as Infrastructure
Monks Proprietary & Confidential 28 INTELLIGENCE AS INFRASTRUCTURE Post Workflow Edit Product Shot Workflow Product Lora Training AI Voiceover Content Workflow Inspiration Image Music Script Final Final Style Application Output Product shots [for 3D reference Storyboard Cinematic Still Moving Image gene
Slide 29: Monks
Monks Proprietary & Confidential 29
Slide 30: Slide 30
Slide 31: Monks
Monks Proprietary & Confidential 31
Slide 32: Monks
Monks Proprietary & Confidential 32
Slide 33: Monks
Monks Proprietary & Confidential 33
Slide 34: Monks
Monks Proprietary & Confidential 34
Slide 35: Monks
Monks Proprietary & Confidential 35
Slide 36: Monks
Monks Proprietary & Confidential 36
Slide 37: The Architects of Now
Monks Proprietary & Confidential 37 THE ARCHITECTS OF NOW
Slide 38: Summary and Outlook
S4 Capital plc 2024 Results 38
Slide 39: Summary & Outlook
S4 Capital plc 2024 Results 39 Summary & Outlook ● Full year results in line with expectations, with improved margin and significant improvement in liquidity and net debt ● Net revenue £754.6 million, down 13.6% reported and 11.0% like-for-like, reflecting lower spending on marketing from technology
Slide 40: Q&A
S4 Capital plc 2024 Results 40
Slide 41: Appendix
S4 Capital plc 2024 Results 41
Slide 42: Additional information
S4 Capital plc 2024 Results 42 Additional information Guidance on adjusting items Weighted average share count for 2025 Expected weighted average share count for 2025 of Amortisation c.677m1 c.£45-50m Expected weighted average share count for 2026 of Share based payments c.687m1 Cash contingent cons
Slide 43: S4 Capital plc 2024 Results
S4 Capital plc 2024 Results