Public Policy Holding Co., Inc. · LSE:PPHC
Public Policy — FY2023 Earnings Presentation
35 slides from Public Policy's earnings presentation, Mar 13, 2024
Slide 1: 2023 Preliminary Results
2023 Preliminary Results 13 MARCH 2024
Slide 2: Disclaimer
2 Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY , TO ANY OTHER PERSON OR IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH A
Slide 3: Table of Contents
Table of Contents 3 4 Presentation Team 5 PPHC Summary 12 2023 Preliminary Result 17 Growth Strategy 21 Conclusion 25 Appendix
Slide 4: Presentation Team
4 Presentation Team Stewart Hall Roel Smits Thomas Gensemer Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 5: PPHC Summary
5 Click toSummary PPHC edit Master Texts Style
Slide 6: PPHC exists to help clients navigate risks and opportunities within government policy
66 PPHC exists to help corporate and NGO clients navigate the risks and opportunities within government policy There is longstanding, bi-partisan support for a highly regulated industry within the US Clinton 1995 Lobbying 1993-2001 Disclosure Act(s) 2002 Sarbanes-Oxley Bush (Financial Reporting) 200
Slide 7: PPHC includes eight complementary, bi-partisan operating companies
77 PPHC includes eight complementary, bi-partisan operating companies servicing over 1200 clients, including 44 of the Fortune 100™ Our firms are leaders in US federal and state lobbying G O V ER N M E N T R E L A T I O N S A N D P O L IC Y A D V O C A C Y markets I N T E GR A T E D S E R V IC E S P
Slide 8: Group revenues are reported within three distinct segments
8 Group revenues are reported within three distinct segments (2023FY) G O V E RNME NT R E L AT I O NS A N D P O L I CY A D V O CA CY D I V E R S I F IE D S E R V I C E S P U B L I C A F F AI RS $95.5m $7.2m $32.3m 2022 : $78.2m 2022 : $--m 2022 : $30.7m 71% 5% 24% of total of total of total +22% N/A
Slide 9: PPHC serves clients across all industries with bi-partisan policy expertise
9 PPHC serves clients across all industries with bi-partisan policy expertise and communications strategy A broad, growing client portfolio with low concentration and deepening share-of-wallet Technology, healthcare, pharmaceuticals, energy and financial services lead Clients Served >1,200 2022 : >8
Slide 10: Since its founding, PPHC has shown steady, robust growth
1010 Since its founding, PPHC has shown steady, robust growth, with 20% organic CAGR since 2016 Post-IPO Acquisitions One of the Largest advocacy and public relations firms in California IPO DEC- 2021 DATE OF COMPLETION 1 Oct 2022 INITIAL CONSIDERATION $11.4m REVENUES IN YEAR PRIOR TO AQUISITION $12
Slide 11: PPHC Now Outranks Other Lobbying Firms
11 PPHC Now Outranks Other Lobbying Firms; Competes with Leading Communications Firms G OVERNMENT R E L ATIONS A N D P O LICY ADVOCACY P U BLIC A F FAIRS Lobbying Firm 2023 Revenue (in $m) PPHC agencies combined (pro forma) 68.2 Brownstein Hyatt Farber Schrek 62.7 $68. 2M i n 2023* PPHC’s peers and
Slide 12: Results 2023FY
12 Click to Results 2023FY edit Master Texts Style
Slide 13: Continued revenue growth and profitability underpin strong cash generation and dividend
Table of Contents 13 Continued revenue growth and profitability underpin strong cash generation and dividend payment Revenue Underlying EBITDA Underlying Net Income $135.0m 2023: $35.1m +12% 2022: $31.2m 2023: $26.5m +14% 2022 : $23.3m +24% 2022: $108.8m +2% (organic) Underlying EPS Dividend 2023: $
Slide 14: P&L results
14 P&L results T RACK RECO RD O F PRO F I T ABL E G RO WT H CO M M ENT ARY Year ended 31 December P&L growing double digits at top and bottom line. P&L Underlying EBITDA margin strong at 26% and within traditional band 25- All in $’000, unless otherwise noted 2023FY 2022FY Change 30%. Year-on-year r
Slide 15: Cash Flow
15 Cash Flow T RACK RECO RD O F ST RO NG O PERAT I O NAL CASH F L O W CO M M ENT ARY Year ended 31 December Operational Cash Flow increasing by 4.5% to $21.6m In line with EBITDA improvement, albeit dampened by (1) higher-than-normal Cash Flow working capital investment due to inclusion of MultiStat
Slide 16: Continuing a strong track record of growth
16 Continuing a strong track record of growth T RACK RECO RD CO M M ENT ARY Historical growth: PPHC has typically delivered growth and excellent profitability throughout political and economic cycles. Government relations business provides for steady profitable growth, while Public Affairs creates s
Slide 17: Growth Strategy
17 Click toStrategy Growth edit Master Texts Style
Slide 18: Organic Growth Strategy - Highlights
18 Organic Growth Strategy - Highlights ONGOING INVESTMENTS IN OUR BRANDS AND IN HOLDCO PLATFORM TO SUPPORT ORGANIC GROWTH Concordant Advisory launched 1 November ‘23 to support the broader Strategic Communications needs of Group clients, new and existing. This offering is designed to build client-s
Slide 19: Short-term goal: establish a Group presence in key global markets
1919 Our short-term goal is to establish a Group presence in key global markets to unlock referral nexus into global corporate budgets While still less regulated than in the US, UK & EU governments have increased lobbying transparency requirements over the last decade The Transparency of UK 2014 Lob
Slide 20: Active M&A Pipeline, expanding geographies and capabilities
2020 Active M&A Pipeline, expanding geographies and capabilities AM PL E SCO PE F O R G RO WT H T HRO UG H M &A Multiple M&A opportunities under consideration/review, which would expand geographies and capabilities Typically, earnout transactions, whereby future payments are conditioned upon gro
Slide 21: Conclusion
21 Click to edit Conclusion Master Texts Style
Slide 22: High government spending + risky political climate = strong, global demand
22 High government spending + risky political climate = strong, global demand Strategic communications with financial, healthcare and tech specialisation(s) among the fastest growing sectors, each with unique demands for policy and regulatory expertise; PR holding companies and other multi-disciplin
Slide 23: Outlook
23 Outlook The Board retains its confidence in the ongoing prospects for the Group and reiterates its medium-term guidance to achieve: Revenues organically growing 5 to 10% each year Incremental growth from future M&A EBITDA margin between 25% and 30%
Slide 24: Summary: Why Invest in Public Policy Holding Company?
24 Summary: Why Invest in Public Policy Holding Company? STRONG, ATTRACTIVE STRONG ATTRACTIVE PROVEN FINANCIAL GROWTH DIVIDEND BUSINESS PROFILE PROSPECTS Large and growing industry Premium profit margins History of payout ratio of Market continues to grow with low correlation with underlying net pro
Slide 25: Appendix
25 Click to edit Appendix Master Texts Style
Slide 26: How does the PPHC Platform add value?
26 How does the PPHC Platform add value? PPHC maintains separately branded and managed PPHC’s Platform for Operations operating companies PPHC offers conflict mitigation, access to growth capital, operational efficiencies and cross referral opportunities Integrated Business Services PPHC supports ea
Slide 27: Acquisitions since IPO
27 Acquisitions since IPO Joined October 2022 Founded in 1996, KP has decades of experience and proven success in the advocacy and public affairs business. KP is consistently ranked as one of California’s top lobbying firms. Current clients include many Fortune 500 corporations, tech startup
Slide 28: From Hire to Hearing in One Day: Launching a 26-State Lobbying Program
28 From Hire to Hearing in One Day: Challenge Launching a 26-State Lobbying When legislation detrimental to the industry was introduced in the California state legislature, a national trade association with no state government affairs footprint Program from Scratch for a needed to quickly launch a s
Slide 29: Automating Lobbying Compliance Saves Fortune 500 Technology Company
29 Automating Lobbying Challenge Compliance Saves Fortune 500 A Fortune 500 technology company was spending weeks scrambling to gather information from dozens of employees to compile their federal lobbying reports. The Technology Company compliance coordinator responsible for overseeing the internal
Slide 30: Saving American Solar Jobs
30 Saving American Solar Jobs Challenge A Department of Commerce (DOC) investigation into solar panel imports from Southeast Asia posed a threat to the US solar industry. Solar projects planned for 2022 were put on hold while US solar companies awaited parts from abroad to complete their projects. S
Slide 31: Saving America's Family Enterprises by Putting a Stop to the Double-Death Tax
31 Saving America’s Family Enterprises by Putting a Stop to the Double-Death Tax Challenge Seven Letter was tasked with creating a campaign to persuade the public to oppose the STEP Tax Solution Results Identify the segment of the population that is Drove engagement amongst the targeted audience ide
Slide 32: Earned Wage Access campaign (Forbes Tate)
32 Educating the Public on the Challenge Importance of Physician-Led Care In 2023, a California state agency sought to create new regulations around Earned Wage Access (EWA) that was unfavorable to Forbes Tate's client and the overall industry. Solution Results Forbes Tate executed a multi-channel p
Slide 33: Educating the Public on the Importance of Physician-Led Care
33 Educating the Public on the Challenge Importance of Physician-Led After years of scope of practice expansion by nurses and mid-level healthcare providers in California, the California Society of Anesthesiologists wanted to increase awareness Care about the importance of physician led care in orde
Slide 34: Guiding a Housing Non-Profit through the Legislative Process
34 Guiding a Housing Non- Challenge Profit through the Navigate Affordable House Partners, a client of Crossroads Strategies, is a mission-driven non-profit contracted to facilitate the Section 8 program in multiple states. In 2022, the U.S. Department of Housing and Urban Legislative Process Develo
Slide 35: Public Policy Holding Company
ad ad H Cc 4 Public Policy 4 Holding Company
Public Policy Holding Company — FY2023 Earnings Presentation on 6ix