Slide 1: NEXT 15 Preliminary Results
NEXT 15 Preliminary Results April 2021 NEXT 15 1
Slide 2: Agenda
Results and news Agenda Business and strategy Update Acquisition update Detailed financials NEXT 15 2
Slide 3: Results summary
Results summary FY21 FY20 Growth Net revenue: £266.9m £248.5m 7% Operating profit: £49.5m £40.9m 21% Operating margin 18.5% 16.4% EPS: 40.7p 34.8p 17% Dividend: 7.0p 2.5p Net cash/(debt): £14m (£9.3m) NEXT 15 3
Slide 4: Additional news
Additional news ● Acquisition of Shopper Media ● Expanded briefs from a number of clients including Salesforce, IBM and Amazon ● New business remains strong and anticipating another good FY ahead despite lingering economic challenges created by the pandemic ● Good progress on office sublets NEXT 15 4
Slide 5: Our response to Covid era
Our response to Covid era Property rethink Furlough - Furlough repayment Cost base Customer facing segments Double down on ESG NEXT 15 5
Slide 6: Covid trends that will persist
Covid trends that will persist D2C data sales tech Amazonification of Measure, The growth metric AI/ML is invading every business analyze, predict, everything model measure NEXT 15 6
Slide 7: As Blackstone Barrels Toward Trillion-Dollar Asset Goal, Growth Is In, Value Out
“As Blackstone Barrels Toward Trillion-Dollar Asset Goal, Growth Is In, Value Out” Wall Street Journal - March 21st 2021 NEXT 15 7
Slide 8: Our Four Business Areas
Our Four Business Areas Customer Insight Customer Engagement Customer Delivery Business Transformation Businesses that give our Businesses that can create Series of deeply specialized Businesses that seek to customers the insights to the digital assets, messages, businesses that use creativity, maxi
Slide 9: Segmental update
Segmental update 12% 62% 19% 7% Insight Engage Delivery Transform Net revenue £33.1m £49.6m £17.7m £166.5m Operating profit £4.9m £15.2m £3.9m £36.9m Operating margin 14.7% 30.7% 22.0% 22.1% NEXT 15 9
Slide 10: Segmental update
Segmental update 12% 62% 19% 7% Insight Engage Delivery Transform Clients: American Express, Clients: Google, Clients: Salesforce, Clients: Hitachi, Argos, Marks & Spencer Beiersdorf, Amazon IBM, Google Shell, EY Long term organic growth: 5-10% Long term organic growth :3-7% Long term organic growth
Slide 11: Acquisition of Shopper Media
Acquisition of Shopper Media ● London based commerce marketing activation agency acquired in April 2021 ● They connect retailers and brands with shoppers at the point of purchase both online and in-store. They do this by helping brands optimize their in/at store media spend and by helping retailers
Slide 12: ESG
ESG ● Working towards B Corp status for the Group. Using this as a framework for all our ESG activities ● Moving to carbon neutral status as quickly as practicable through reduced office space, flexible working, less travel and offsetting ● Influencing our clients through industry-wide ‘Ecoffectiveness’
Slide 13: Financials
NEXT | mlarelaleitels 13
Slide 14: Income statement Adj. Results
Income statement Adj. Results £M 2021 2020 GROWTH % Net revenue 266.9 248.5 7% Operating profit 49.5 40.9 21% Operating margin 18.5% 16.4% Profit before tax 49.1 40.2 22% Tax (9.9) (8.0) Minorities (1.0) (0.6) Profit after tax 38.2 31.6 21% Diluted EPS (p) 40.7 34.8 17% Dividend per share (p) 7.0 2.5 N
Slide 15: Adjustments breakdown
Adjustments breakdown £M 2021 2020 Adjusted profit before tax 49.1 40.2 Restructuring (2.7) (4.6) Property impairment (10.0) - Deal costs (0.4) (0.9) Share based payments (2.4) (0.4) Acquisition accounting related costs (36.3) (28.7) Furlough 1.4 - Statutory (loss)/profit before tax (1.3) 5.6 NEXT 15
Slide 16: FY21 Segments
FY21 Segments Operation Net revenue Net revenue Organic Operating Margin Margin 2021 growth growth/ Profit 2021 2020 £M (decline) £M Brand Marketing 140.5 4.1% (5.5)% 34.6 24.6% 22.2% Data and analytics 48.5 7.5% 8.2% 13.3 27.4% 28.2% Creative 77.9 13.9% (6.0)% 13.0 16.8% 11.4% technology Head Office -
Slide 17: FY21 Revenue Bridge
FY21 Revenue Bridge (£8.4m) (£1.2m) (3.4%) £28.0m (0.5%) 11.3% NEXT 15 17
Slide 18: Cashflow statement
Cashflow statement £M 2021 2020 Inflow from op activities 66.4 52.8 Working capital 6.5 (3.3) Net inflow from operations 72.9 49.5 Tax (8.4) (6.0) Net capex (4.1) (5.3) Acquisitions (23.6) (23.7) Net interest and dividends paid (0.7) (7.8) Repayment of lease liabilities (12.6) (11.4) Exchange (loss) /
Slide 19: Estimated future cash payments
Estimated future cash payments 31 Jan 2021 31 Jan 2020 £M £M FY 2021 - 16.3 FY 2022 14.0 8.5 FY 2023 18.0 9.6 FY 2024 12.3 6.8 FY 2025 6.8 5.7 FY 2026 11.3 2.0 Total 62.4 48.9 19 NEXT 15
Slide 20: FY21 Organic growth
FY21 Organic growth 4% 2% 2% 0% -2% Q1 Q2 Q3 Q4 -4% (3%) -6% (4%) -8% (8%) 20 NEXT 15
Slide 21: Priorities, current trading and outlook
Priorities, current trading and outlook ● Focus on organic growth of existing businesses and future drivers ● Mix of strategic and bolt-on acquisitions ● Drive increased internal collaboration around key customers ● Productisation ● Current trading in Q1 ahead of management expectations ● Prioritise
Slide 22: Appendices
Appendices NEXT 15 22
Slide 23: Management Team
Management Team Penny Ladkin-Brand Tim Dyson Peter Harris (Chair) (CEO) (CFO) Penny is Non-Executive Chair and a member of the Audit and Tim joined the Group in 1984 straight rom Loughborough Peter joined Next 15 as its Chief Financial Officer in University and became CEO in 1992. Remuneration Commi
Slide 24: Top 10 Clients
Top 10 Clients amazoncom = Google INTUIT NEXT 15
Slide 25: Regional Segments
Regional Segments Operation Net revenue Organic Operating Margin Margin 2021 (decline) Profit 2021 2020 £M £M US 138.4 (0.8)% 34.2 24.7% 20.7% UK 106.2 (6.4)% 22.4 21.1% 20.6% APAC 13.7 (5.5)% 2.3 17.1% 15.6% EMEA 8.6 (4.7)% 2.0 23.2% 18.0% HEAD OFFICE - - (11.4) - - Total 266.9 (3.4)% 49.5 18.5% 16.
Slide 26: Balance sheet summary
Balance sheet summary £M 31 January 2021 31 January 2020 Intangible assets 163.8 155.4 Non-current assets 52.3 69.0 Current assets 105.6 99.7 Non-current liabilities (93.1) (113.5) Current liabilities (111.7) (97.9) Net assets 116.9 112.7 Share capital 2.3 2.2 Reserves 114.7 111.1 Minorities (0.1) (