Public Policy Holding Co., Inc. · LSE:PPHC
Public Policy — FY2024 Earnings Presentation
41 slides from Public Policy's earnings presentation, March 2025
Slide 1: PPHC Results FY 2024
PPHC Results FY 2024 March 2025
Slide 2: Disclaimer
Disclaimer 2 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: Presentation Team
Presentation Team 3 Stewart Hall Roel Smits Thomas Gensemer Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 4: Table of Contents
Table of Contents Table of Contents 4 FY 2024 Highlights PPHC Summary Financial Results Growth Strategy Conclusion Appendix
Slide 5: PPHC Summary
5 Click to Summary PPHC edit Master Texts Style
Slide 6: Our mission
6 Our mission To be the preeminent strategic communications and government relations provider by uniting a diverse group of leading specialists around the world for the collective success of our clients, employees, and shareholders.
Slide 7: FY 2024 Financial Highlights
FY 2024 Financial Highlights 7 Revenue increased 11% to $149.6m (FY2023: $135.0m), with organic growth contributing 2.7% and the balance driven by earnings accretive acquisitions completed in the Period and in 2023 Click to edit Underlying EBITDA of $36.1m, up 3.0%, was achieved at a 24.2% margin, i
Slide 8: PPHC Quick Overview
PPHC Quick Overview 8 8 PPHC operates a complementary portfolio of strategic advisory firms with bi-partisan expertise Key capabilities and growing geographic reach Click to edit HQ in Washington DC, with US offices1 in CA, NYC, Boston, Nashville and Dallas/Fort Worth. International presence in Lond
Slide 9: Our operating companies have highly-complementary specialisations and reach
Our operating companies have highly-complementary specialisations and reach 9 9 Strategic Communications & Public Affairs Click to edit Master Texts Style Federal & International Lobbying State Lobbying & Compliance (1) Completion of TrailRunner International expected by management by 1 April 2025:
Slide 10: PPHC Platform Growth to Date (2014-2024)
PPHC Platform Growth to Date (2014-2024) 10 A decade of strategic M&A. We've found highly accretive firms, who deliver complementary, premium offerings to a broad portfolio of retained clients. Click to edit Master Texts Style 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2014 2018 201
Slide 11: Blue chip client base; including half of Fortune 500
11 Blue chip client base; including half of Fortune 100 2024 Revenues by industry (total = $150m) Heavily retained, highly renewed contracts with clients in key regulated end-markets Click to edit Pharma 15.0 Federal, State & International Healthcare 14.2 Lobbying Strategic Communications Technology
Slide 12: KPIs – growing client base and declining client concentration
KPIs – growing client base and declining client concentration 12 Our number of Clients Continued client momentum reflects high levels of retention, new Click to edit c. 1200 clients wins and M&A Master Texts Style 2018 2019 2020 2021 2022 2023 2024 Client revenues as % of total revenues Enhanced ear
Slide 13: KPIs – sustained client retention and increasing client spend
KPIs – sustained client retention and increasing client spend 13 Client spending Increasing wallet share with growth in $100k+ 503 and $250k+ spend clients Click to edit 437 353 137 328 278 118 103 503 clients: 190 95 Master Texts Style 134 72 41% of # clients 83% of $ revenues 47 31 2018 2019 2020
Slide 14: Industry overview
14 Industry overview Thematic end-market tailwinds… PPHC has an attractive and defensible position in the ~$20bn+ US federal & US public affairs and US federal and state lobbying markets are expected to grow state lobbying and public affairs markets, and is actively pursuing the Click to edit at ~4.
Slide 15: We focus on our clients' toughest challenges and most important audiences
We focus on our clients’ toughest challenges and most important audiences 15 Stakeholders are increasingly interconnected across medium and geographies Strategic Examples of PPHC Services Political Click to edit Politicians Targeted Investors & Other Elite Objectives Regulators Allies & Journalists
Slide 16: PPHC outranks all other lobbying firms; competes with leading communications firms
PPHC outranks all other lobbying firms; competes with leading communications firms 16 Government Relations & Policy Advocacy Strategic Communications & Lobbying Firm 2024 Revenue (in $m) PPHC agencies combined (pro forma) 69.8 Public Affairs Brownstein Hyatt Farber Schrek 67.8 $69.8m in 2024 Akin Gu
Slide 17: PPHC employees
PPHC employees 17 Employee metrics 360+ Employees 75%+ of PPHC shares owned by employees 85+ Employee shareholders
Slide 18: Financial Results
18 Click to editResults Financial Master Texts Style
Slide 19: Highlights FY 2024 (and variances from FY 2023)
19 Highlights FY 2024 (and variances from FY 2023) Revenue EBITDA Margin Net Income Margin $149.6m $36.1m $24.2% $27.7m 18.5% Click to edit Up 11% from $135.0m Organic growth +3%, with GR Up 3% from $34.9m Strong profit conversion. EBITDA Down 1.8pt from 26.0% Close to target range 25-30%. Up 5% fro
Slide 20: Continuing a strong track record of revenue growth
Continuing a strong track record of revenue growth 20 20 2024 revenue: $150m Click to edit 9.4% 12.1% 25.3% 25.3% 8.3% 24.4% 6.7% 2.0% 2.7% In 2024, again significant impact from M&A, and 150 Master Texts Style 11 organic growth slightly 135 24 4 higher than last year at 2.7% 109 3 2 99 3 7 77 19 17
Slide 21: Zooming in on organic revenue growth 2023 and 2024
Zooming in on organic revenue growth 2023 and 2024 21 Both years impacted by lull in PA – which now seems behind us Organic growth in 2023 and Growth vs PY 2024 has been below our traditional levels of 5-10% 23% 4% 4% 2.0% 2.7% …clearly impacted by decline in Public Affairs (especially in project wo
Slide 22: By segment
22 22 By segment GR and DS showing strong sustainable growth, while partially offset by decline in project-based Public Affairs work Click to edit FY 2024 Government Relations Diversified Services Public Affairs Total Master Texts Style Revenue $102.5m $10.7m $36.4m $149.6m % of total 68% 7% 24% 100
Slide 23: Profit: growing and positive
Profit: growing and positive 23 Very profitable – and high cash conversion Items reducing margin in EBITDA% 28% 24% 28% 32% 29% 26% 24% 26% recent years Underlying Public company costs and EBITDA % 39.2 investments in 35.1 36.1 platform/holdco 32 31.2 In 2024 significant rise in one-off costs: 21.5
Slide 24: P&L results
P&L results 24 Track record of profitable growth Commentary 2024FY 2023FY change change ($) P&L growing at top and bottom line P&L Underlying EBITDA margin strong at 24.2% just below traditional band All in $'000, unless otherwise noted 25-30%. Impacted 2.0 pts by $3.1m incremental one-offs of Conco
Slide 25: Cash flow
Cash flow 25 Track record of strong operational cash flow Commentary Non-GAAP Cash Flow Statement 2024FY 2023FY change change ($) (non-GAAP) Free Cash Flow increasing by +4% to $22.2m, and Cash Flow Operational Cash Flow increasing by +3% to $22.3m, both in line with All in $'000, unless otherwise n
Slide 26: Acquisitions
Acquisitions 26 Acquisitions structured to drive EPS growth in risk-controlled way Typical acquisition structure: Impact on EPS: Upfront Payment in combination with multiple earnout payments Management manages upfront price and earnout parameters such that over longer period EPS is generally accreti
Slide 27: Growth Strategy
27 27 Click to edit Growth Strategy Master Texts Style
Slide 28: Embedded growth opportunities
28 28 Embedded growth opportunities Leverage PPHC Platform Deeper Across Client Portfolio Strong Secular Tailwinds Click to edit Unique proposition of our integrated policy, political and communications expertise Master Texts Style Monetizing the distinct capabilities of multiple brands across the p
Slide 29: Active M&A pipeline, expanding geographies and capabilities
29 29 Active M&A pipeline, expanding geographies and capabilities Ample scope for growth through M&A Geography Issue Specialisation Multiple M&A opportunities under consideration/review, Click to edit which would expand geographies and capabilities Typically, earnout transactions, whereby future
Slide 30: Recent Acquisition – TrailRunner International
30 30 Recent Acquisition – TrailRunner International Company overview Significant expansion of strategic communications capabilities Click to edit Extends reach into key markets, including the US, UK, Middle East and Asia Master Texts Style Highly complementary to existing services Deepens a
Slide 31: Our Ambition in the medium-term
Our Ambition in the medium-term 31 $500M Potential Pathways Click to edit Organic growth existing companies 5-10% (amplified by collaboration) Master Texts Style Acquisition growth: Annually acquire revenue $35-50m at margins 20-30% Purchase multiple 5-8x PAT across earnout Organic growth acquired c
Slide 32: Conclusion
32 32 Click to edit Conclusion Master Texts Style
Slide 33: Changes in government spending + risky political climate = strong, global demand
33 33 Changes in government spending + risky political climate = strong, global demand Tailwinds driving growth Strategic communications with financial, healthcare and tech Click to edit specialisation(s) among the fastest growing sectors, each with unique demands for policy and regulatory expertise
Slide 34: Summary and Outlook
Summary and Outlook 34 34 Our firms operate in the high-end, high-margin corporate advisory space with High level of stability offerings of Strategic Communications, Lobbying and Public Affairs Click to edit PPHC uniquely combines the superior profitability and retention of a trusted, client-focused
Slide 35: Appendix
35 35 Click to edit Appendix Master Texts Style
Slide 36: 10 years after our founding, our story is just getting started
10 years after our founding, our story is just getting started 36 Our foundation Current Now to medium-term (2014 - 2021) (post-IPO to today) (2030+) Focused on Federal (US) Expansion into US States and Further geographic expansion international government relations Deepening research, (“lobbying”)
Slide 37: Case studies: real world solutions, driving change
Case studies: real world solutions, driving change 37 PPHC has a proven track record of: Driving legislative wins that shape policy outcomes Amplifying industry voices to influence public and political discourse Positioning organizations for funding, growth, and policy success Navigating reg
Slide 38: Why public? Why on AIM?
Why public? Why on AIM? 38 Why are we a listed company? Why In London? Implement an M&A currency to seize strategic The UK and AIM has a strong track record of acquisition opportunities and maintain a competitive supporting high-growth, mid-sized professional edge services businesses Have structural
Slide 39: How does the PPHC platform add value?
39 39 How does the PPHC platform add value? PPHC maintains separately branded and PPHC’s platform for operation managed operating companies Click to edit PPHC offers conflict mitigation, access to growth capital, operational efficiencies and cross referral opportunities Integrated Business Master Te
Slide 40: Our short-term goal is to establish a Group presence in key global markets
Our short-term goal is to establish a Group presence in key global 40 40 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 Click to edit UK 2014 The Tran
Slide 41: PPHC
PPHC:
Public Policy Holding Company — FY2024 Earnings Presentation on 6ix