Mission Group Public Limited Company · LSE:TMG
Mission Group Public — The Mission Group — H1 2022 Earnings Presentation
24 slides from Mission Group Public's earnings presentation, September 2022
Slide 1: For the six months to 30 June 2022
>>) MISSION For the six months to 30 June 2022 AN
Slide 2: Agenda
AGENDA 2 1. Financial Review 2. Initiatives & Outlook
Slide 3: Financial Review
3 1. FINANCIAL REVIEW
Slide 4: Profit & Loss
4 PROFIT & LOSS (£’M) H1 2022 H1 2021 £ change % ü H1 on track with management expectations BILLINGS 81.2 69.5 11.7 ü Revenue, Profit up 10% REVENUE 37.5 34.1 3.4 10% OPERATING EXPENSES (35.3) (32.1) (3.2) ü Managing cost pressures HEADLINE OPERATING PROFIT 2.2 2.0 0.2 10% SHARE OF ASSOCIATES/JV 0.1
Slide 5: Balance Sheet
5 BALANCE SHEET (£’M) H1 2022 H1 2021 DEC 2021 ü Reduced working capital driving improved net debt £11m increase in debtors & £13m increase in creditors = INTANGIBLES 99.6 95.9 99.0 US Clients pre-paid media & DIT/CWG events FIXED ASSETS/INVESTMENTS 2.6 2.6 2.6 WORKING CAPITAL 3.5 3.5 6.9 ü Acquisit
Slide 6: Cash Flow
6 CASH FLOW (£’M) H1 2022 H1 2021 EFFICIENT CASH HEADLINE OPERATING PROFIT 2.2 2.0 CONVERSION ADD BACK DEPRECIATION 1.9 1.9 LESS LEASE PAYMENTS (1.0) (1.0) 110% average conversion ratio over the three years to 2021 EBITDA 3.1 2.9 Cash flow from operations / operating profit % INTEREST AND TAX (0.4)
Slide 7: In Summary
7 IN SUMMARY ü H1 trading in line with expectations ü 10% Revenue growth ü 10% Profit conversion ü Low level of outstanding earn-outs ü Total Debt at all-time low ü Excellent record of Cash conversion ü Progressive Dividend strategy
Slide 8: Initiatives & Outlook
8 2. INITIATIVES & OUTLOOK
Slide 9: Invested for Growth
9 INVESTED FOR GROWTH • New Non-Exec Deputy Chair appointed (Mark Lund) o Catalyst for next 5-year business planning cycle • First ‘Group’ Vertical specialism created in Healthcare • International Growth, particularly US, continues o Partnerships working well but more to come • Central Services enha
Slide 10: Mark Lund appointed as Non-Exec and Deputy Chair
MARK LUND 10 APPOINTED AS NON-EXEC AND DEPUTY CHAIR Recognised widely as an industry leader, Mark has a powerful reputation of delivering tremendous success and growth. He has spent over 25 years leading and founding great companies, as an entrepreneur and executive, and joins The MISSION Group to s
Slide 11: Tim Passey appointed as CEO, Mission Health
TIM PASSEY 11 APPOINTED AS CEO, MISSION HEALTH BACKGROUND: WPP Health Practice, most recently as Director of Strategic Partnerships responsible for aligning health ambition across multiple agencies with a view to significant enhancement of an end-to-end client offer based around improved CX Previous
Slide 12: Continued International Growth
12 CONTINUED INTERNATIONAL GROWTH ORGANIC AND THROUGH PARTNERSHIPS
Slide 13: An Enhanced Mission Made Following Integration of Vietnam Services
13 AN ENHANCED MISSION MADE FOLLOWING THE INTEGRATION OF OUR VIETNAM SERVICES (01.07.22) WordPress, Kentico, Websites & Sitecore, Acquia/Drupal Bespoke Products Digital Bolt-on Comms & Video content, New business, consultancy Campaign proposals & pitches. Adapt/Extend emails, display ads, Short term
Slide 14: Successfully Launched Story Group
14 SUCCESFULLY LAUNCHED STORY GROUP (17.05.22) • 60 people across three offices with a strong offering born of our combined experience • Growth from existing clients that are reassured by the larger business eg. LVMH and Ardbeg Prestige appointment • Responding to more, and more varied, Government f
Slide 15: Successfully Launched Krow.x
15 SUCCESFULLY LAUNCHED KROW.X (01.02.22) We are the creative agency underpinned by Customer Experience thinking. CX insight and tools fuel our creativity, and creativity elevates our CX approach. We deliver what clients of today need: Fresh, effective and efficient creative work across multiple cha
Slide 16: M&A a Key Driver of Future Growth
16 M&A A KEY DRIVER OF FUTURE GROWTH AND WE KISS A LOT OF FROGS! HOW MANY OF THESE THREE FACTORS DOES THE TARGET CLEARLY PROVIDE? Generate significant 0= STOP HERE; very low chance of creating Opex savings accretive value from the deal. 1= Continue with 50 points. 2= Continue with 65 points. Sell ou
Slide 17: Bonus Points
17 2. BONUS POINTS WHICH OF THESE (OR OTHER UNIDENTIFIED) STRATEGIC BENEFITS DOES THE TARGET BRING? Focus areas remain: • Sports and eSports • Social • Performance Media 5 points for each one to a maximum of 25 points • Data & Analytics • Vertical enhancements • High value/high demand offer that we
Slide 18: Investing in the Next Generation
INVESTING IN THE NEXT GENERATION CHARITIES WE SUPPORT VOLUNTEERING Many of our MISSION team take paid time off for volunteering, either by supporting a charity or cause of their choice or by helping their Agency's nominated charity. In the 3t three years, ou worth £317,000 alongside charit ‘through
Slide 19: Environmental Impact 2022
MISSION ENVIRONMENTAL IMPACT 2022 CARBON FOOTPRINT PARTNERS FOR SUCCESS CARBON HOTSPOTS ZS BS ausines Towel ecticty end Gos Consumption real BB a oma) ‘Computer Purchases ond ‘Agencies with tne Highest TT Senices Contacte ‘Carbon Emissions Element
Slide 20: People That Count
20 PEOPLE THAT COUNT • The fight for talent remains and wage inflation alongside a contraction in the employment market are creating challenges for the whole industry. We foresaw this impact and are benefitting from our early action to best mitigate • 158 people were recruited by the central team du
Slide 21: Pathfindr: Time to Step Up
21 PATHFINDR: TIME TO STEP UP Given the nature of the solution Pathfindr has inevitably been affected by Global supply chain issues and the wider economic uncertainty. However 2 key new product initiatives see a clear focus for H2: 1. Pathfindr are working with Petronas on a European wide supply cha
Slide 22: Mission Group Outlook
22 MISSION GROUP OUTLOOK POSITIONED FOR DEFENCE AND ATTACK • As in previous years, the Group expects the majority of its profit to be generated in H2 • Despite the heightened level of global macro-economic uncertainty, we remain strong Key Criteria Defence Offence Balance Sheet Low total debt Signif
Slide 23: In Summary
23 IN SUMMARY 10% REVENUE TRADITIONAL H2 ON TRACK HAVING GROWTH WEIGHTING WITH APPOINTMENT OF MADE STRENGTH OF INDUSTRY LEADER, SIGNIFICANT 10% PROFIT GROUP GIVING MARK LUND, TO PROGRESS CONVERSION CONFIDENCE BOARD AS DEPUTY AGAINST SCIENCE DESPITE CHAIR BASED ESG TOTAL DEBT AT ECONOMIC TARGETS ALL
Slide 24: Thank You
24 THANK YOU