S4 Capital Plc · LSE:SFOR
S4 Capital — Q3 2022 Earnings Presentation
19 slides from S4 Capital's earnings presentation, November 2022
Slide 1: 2022 Q3 Trading Update
2022 Q3 Trading Update 1 November 2022
Slide 2: Contents
CONTENTS 01 Trading Update 02 Clients & Market Trends 03 Summary & Outlook 04 Q&A 05 Appendix 2
Slide 3: Trading Update
Chapter 01 - Trading Update Trading Update 01 3
Slide 4: Q3 Trading Update
Chapter 01 - Trading Update Q3 Trading Update Revenue Gross profit/net revenue Profitability Q3: £300.1m Q3: £249.9m +68.2% reported +73.1% reported +26.5% like-for-like1 +29.3% like-for-like Headcount stabilised. YTD: £746.5m YTD: £625.2m Q3 better than H1. Q3 exit run rate +63.1% reported +64.1% rep
Slide 5: Q3 Growth by Practice and Region
Chapter 01 - Trading Update Q3 Growth by Practice and Region 5
Slide 6: YTD Growth by Practice and Region
Chapter 01 - Trading Update YTD Growth by Practice and Region 6
Slide 7: Clients & Market Trends
Chapter 02 - Clients & Market Trends 02 Clients & Market Trends 7
Slide 8: 20² Scaled Client Strategy (Whoppers)
Chapter 02 - Clients & Market Trends 20² Scaled Client Strategy (Whoppers) Potential 2020 2021 2022 (Projected) Next 14 5 5 2 4 1 1 1 1 1 2 1 1 1 1 1 2 1 1 (Run Rate) 8
Slide 9: Our client portfolio
Chapter 02 - Clients & Market Trends Our client portfolio Q3YTD 2022 Revenue Q3YTD 2021 Revenue 9 Based on 100% of S4 Capital Q3YTD 2022 and Q3YTD 2021 reported Revenue
Slide 10: An attractive and expanding client base
Chapter 02 - Clients & Market Trends An attractive and expanding client base 2022 9M YTD 2021 9M YTD No of % of Cumulative No of % of Cumulative Clients Revenue % Revenue Clients Revenue % Revenue Above £10m 11 47% 47% 6 32% 32% £5-£10m 10 8% 56% 8 13% 45% £1-£5m 67 17% 73% 49 20% 65% £0.1-£1m 538 2
Slide 11: The leading platforms are still growing
Chapter 02 - Clients & Market Trends The leading platforms are still growing 11 Source: Morgan Stanley, Evercore ISI, eMarketer, Jefferies October 2022.
Slide 12: Clients continue to prioritise Digital channels…
Chapter 02 - Clients & Market Trends Clients continue to prioritise Digital channels… Source: World Federation of Advertisers, October 2022 12
Slide 13: … and reduce their analogue spend
Chapter 02 - Clients & Market Trends … and reduce their analogue spend 13 Source: World Federation of Advertisers, October 2022
Slide 14: Digital Transformation continues to show strong growth
Chapter 02 - Clients & Market Trends Digital Transformation continues to show strong growth % of Organizations That Will Have a Comprehensive Digital Digital Engineering Services Spend is Robust Transformation Implementation Roadmap Multi-Year Organic Revenue Growth Trajectory Stands Above Pre-COVID
Slide 15: Summary & Outlook
Chapter 03 - Summary & Outlook 03 Summary & Outlook 15
Slide 16: Summary & Outlook
Chapter 03 - Summary & Outlook Summary & / Strong momentum continued in Q3 with gross profit/net revenue up 29.3%, YTD growth at 28.4% Outlook / Controls on costs are starting to work, people numbers are stable / Q3 profitability significantly better than H1, and Q3 exit run rate sufficient to meet revis
Slide 17: Q&A
Chapter 04 -Q&A Q&A 04 17
Slide 18: Appendix
Chapter 05 - Appendix Appendix 05 18
Slide 19: Appendix – Additional Information
Chapter 05 - Appendix Appendix – Additional Information Share Consideration Committed Invested Capital ● Deferred share issuance of c.7 million shares on considerations in ● Invested capital2 to date c.£1.0 billion 2022, c.8 million in 2023 and c.36 million in 2024, totalling c.51 million shares ● E