Rws Holdings Plc · LSE:RWS
Rws — H1 2021 Earnings Presentation
21 slides from Rws's earnings presentation, Apr 23, 2021
Slide 1: RWS Investor presentation 2021
RWS Investor presentation 2021 Andrew Brode Richard Thompson Des Glass RWS 2021© Chairman Chief Executive Officer Chief Financial Officer 1 © 2021 RWS
Slide 2: Good H1 performance and integration progressing well
Good H1 performance and integration progressing well REVENUE • Good first half performance despite FX pressures: £326.4m • Revenue in line with expectations + 92%, + 3% underlying1 • Adjusted PBT ahead of expectations 2020: £169.7m • SDL integration progressing well • Cost synergies of £32m by YE FY
Slide 3: Leaders in specialist, growing market segments
Leaders in specialist, growing market segments Language Language & IP Regulated Services Content Services Industries Technology • World’s premier provider • Highly specialised • World‘s largest language • Offers latest innovations of patent translation and technical translations and service provider
Slide 4: The world’s leading language services & technology group
The world’s leading language services & technology group • Enhanced customer proposition - The capabilities, scale and reach to serve combining RWS’ specialist technical language the largest global companies services and SDL’s language technology expertise • Substantially strengthened positions in •
Slide 5: ESG – increased focus
ESG – increased focus • Board and Committees restructured • New Group intranet being rolled out for enhanced staff communications and involvement • Initiated a full review across enlarged Group to identify and action steps required to improve • RWS staff given the opportunity to work as diversity me
Slide 6: Operational overview and SDL acquisition
Operational overview and SDL acquisition 6 © 2021 RWS
Slide 7: Integration progressing in line with anticipated timetable
Integration progressing in line with anticipated timetable November 2020 Dec 2020 – Feb 2021 March 2021 - Designed the Detailed Execution structure integration plan - to deliver a simplified Group with four divisions efficiently - to optimize expanded scale, - to ensure seamless delivery and focus s
Slide 8: Expect to deliver significantly increased cost synergies
Expect to deliver significantly increased cost synergies Additional cost Action plans in place to: savings as we progress integration • Deliver savings by September 2022 • Fully integrate under RWS brand; rebrand of SDL and Moravia and £32m by Sept launch of RWS website complete 2022 • Roll out the
Slide 9: Fully integrating combined divisions
Fully integrating combined divisions Regulated Industries Language Services • Now has one operational structure with accountability • One operational structure with accountability for profit for profit • Well underway with consolidating services to the • SDL’s acquisition of Donnelley Language Solut
Slide 10: Fully integrating combined divisions
Fully integrating combined divisions IP Services Language & Content Technology • Limited overlap with other divisions • Limited integration required; focus on operational • Largely unaffected by integration work improvement • Cross-selling project has identified some promising • The rationalisation
Slide 11: Summary of integration benefits
Summary of integration benefits Increased sales opportunities Operational efficiencies and enhanced proposition • Leverage wider geographic footprint and • Elimination of duplication enlarged sales teams • Enhanced focus on the customer • Increased cross sell opportunities for IP Services, • Best of
Slide 12: Financial overview
Financial overview 12 © 2021 RWS
Slide 13: Underlying segmental revenue bridge
Underlying segmental revenue bridge UNDERLYING1 REVENUE GROWTH £m 340 6.0 2.0 (1.1) 1.8 333.9 (7.5) 326.4 155.5 -2% IP Services 320 300 280 +9% Regulated Industries 260 240 220 +1% Language Services 200 180 169.7 Language & Content 160 +4% Technology H1 2020 Acquisitions2 Regulated Language IP Servi
Slide 14: Group currency analysis
Group currency analysis Proforma currency position – RWS & SDL Currency management remains a priority with (in GBP million equivalents) – FY20 Pro forma significant additional USD surplus resulting from the SDL combination Revenue by currency • Effectively hedged at a transactional level at 500 Oper
Slide 15: Summary and outlook
Summary and outlook 15 © 2021 RWS
Slide 16: Summary and Outlook
Summary and Outlook • Successful and rapid integration of RWS and SDL remains the Group’s top near term priority • Trading has been encouraging despite impact of adverse FX rates • Expect FY 21 PBT to be in line with expectations, at current FX rates • Language services and technology remains a stru
Slide 17: Thank you and questions?
Thank you and questions? 17 © 2021 RWS
Slide 18: Appendices
Appendices 18 © 2021 RWS
Slide 19: Key investment case highlights
Key investment case highlights Strong market positions in structurally growing end markets Experienced Attractive and management team sustainable margins Successful track record Market leading language and of value-enhancing M&A content technology products Strong balance sheet ensuring Strong cash f
Slide 20: A 17-year track record growth
A 17-year track record growth 20 20 © 2021 RWS
Slide 21: Shareholders list
Shareholders list As at 31 March 2021 Top shareholders Holding (%) Andrew S Brode 23.2 Liontrust Asset Management 8.6 Canaccord Genuity Wealth Management 5.0 Octopus Investments 3.5 Aberdeen Standard Investments 3.0 Financiere de l’Echiquier 2.5 Janus Henderson Investors 2.4 21 © 2021 RWS