Slide 1: Full Year Results 2021
2021 Full Year Results 2021 22 March 2022
Slide 2: Introduction: Group
THE PEBBLE GROUP Introduction Group Claire Thomson Chris Lee CFO CEO 2
Slide 3: The industry: c.$50bn promotional products market
The industry c.$50bn promotional products market Digital commerce, products and related services to the global promotional products industry Our vision is to be the industry leader in digital commerce providing a combination of integrated products that offer the full suite of technology required for
Slide 4: Highlights FY 21, KPIs
The industry c.$50bn promotional Highlights FY 21, KPIs products market The Pebble Group 40% growth in Group Revenue Balance sheet remains strong and cash was ahead of expectation at 31 Dec 2021, being £12.1m Facilisgroup 40% USD growth in Annual Recurring Revenue 60% EBITDA margins 98% Partner (cus
Slide 5: Highlights FY 21, KPIs
THE PEBBLE GROUP Highlights FY 21, KPIs Revenue Adjusted EBITDA1 Basic adjusted EPS2 Net cash3 +39.7% +57.1% +2.18p +£5.0m 5.14 £12.1m £115.1m £15.4m £82.4m £9.8m 2.96 £7.1m FY 20 FY 21 FY 20 FY 21 FY 20 FY 21 2020 2021 1 Adjusted EBITDA is defined as operating profit adjusted to add back depreciati
Slide 6: Key financial dynamics
THE PEBBLE GROUP Key financial dynamics Revenue recovery at Revenue by business % EBITDA by business % Brand Addition 11% FY 21 43% FY 21 flows through to 12% FY 20 54% FY 20 EBITDA, high margins on ARR at 46% Facilisgroup 88% 57% 89% Brand Addition Brand Addition Facilisgroup Facilisgroup Commentar
Slide 7: Income statement FY 21
THE PEBBLE GROUP Income statement FY 21 £’m FY 21 FY 20 FY 19 Revenue 115.1 82.4 107.2 40% Revenue growth Gross profit 42.0 31.0 40.1 Detail in segmental compared to FY 20 People & overhead (24.5) (19.8) (24.3) analysis Adjusted EBITDA pre-Head Office 17.5 11.2 15.8 Head office costs (2.1) (1.4) (0.
Slide 8: Cash flow FY 21
THE PEBBLE GROUP Cash flow FY 21 £’m FY 21 FY 20 FY 19 Adjusted EBITDA 15.4 9.8 15.2 Increased trading in Brand Addition driving growth in trade receivables Movement in working capital (2.8) (1.8) 1.1 Capital expenditure (5.3) (5.7) (2.1) Facilisgroup, £3.8m, including £0.3m deferred consideration o
Slide 9: Balance Sheet FY 21
THE PEBBLE GROUP Balance Sheet FY 21 £’m FY 21 FY 20 FY 19 Non-current assets 63.9 63.6 56.4 Goodwill and intangibles: £44.4m, Software: £11.3m, PPE: £7.9m, DT asset £0.3m Inventories 10.1 12.1 8.0 New business legacy stock received at the end of FY20, sold through in FY21 Trade & other receivables
Slide 10: Facilisgroup: transforming the promotional products industry through digital commerce
Facilisgroup is focused on transforming the promotional products industry through digital commerce that enables customers to benefit from significant business efficiencies and supply chain advantages
Slide 11: Segmental Analysis FY 21
THE PEBBLE GROUP Segmental Analysis FY 21 £’m FY 21 FY 20 FY 19 Commentary Recurring Revenue 12.2 9.3 8.2 +30% ARR in GBP, +40% in USD home currency Other Revenue 0.5 0.5 1.1 Total Revenue 12.7 9.8 9.3 People & overhead (5.1) (3.8) (4.2) Investment in team to support growth aspirations Adjusted EBIT
Slide 12: High visibility through ARR with a loyal and growing Partner base
THE PEBBLE GROUP Recurring Revenues ARR, 25% CAGR High visibility Revenues £’m Revenues $’m since acquisition in Dec 2018 through ARR with a 0.6 0.8 loyal and growing 0.5 0.5 1.3 1.4 16.7 Partner (customer) 1.1 1.2 11.9 1.0 12.2 10.5 0.9 9.3 base 8.2 8.6 6.4 7.0 5.4 FY 17 FY 18 FY 19 FY 20 FY 21 FY
Slide 13: Growth in all key indicators that influence ARR
THE PEBBLE GROUP Partner Activity Growth in all key Partner numbers # Gross Merchandise Value $’m Preferred Supplier Purchases $’m indicators that 350 1,150 200 influence the 175 249 growth of the 149 127 821 768 261 257 119 730 227 business’s ARR, 638 193 alongside a 98% 2017 2018 2019 2020 2021 FY
Slide 14: Large sector opportunity, then new geographies, adjacent sectors
THE PEBBLE GROUP Addressable market opportunities Facilisgroup Digital commerce platform SYNCORE LITE • Facilisgroup is focused on the large, niche Workflow: $2m - $20m Workflow: <$2m Target # businesses: ~2,000 Target # businesses: ~23,000 Large sector promotional products industry, providing a dig
Slide 15: Milestones: internal aspirations to 2024 and beyond
THE PEBBLE GROUP Milestones – our internal aspirations to 2024 and beyond Internal aspirations 2020 (A) 2021 (A) 2022 2023 2024 Customer numbers 175 200 330 575 950 # Beyond Aspiration 2024 Gross 2024 Merchandise - Gains in existing market Value 1.0 1.1 1.2 1.5 1.9 $’bn $50m - New geographies Annual
Slide 16: Goals in 2022
Goals in 2022 § Meet our internal milestones for our 2024 internal aspirations § Successfully launch Commercio to materially grow 2023 ARR § Set the foundation for ‘Syncore Lite’ launch in 2023
Slide 17: Brand Addition provides full-scale promotional products services
Brand Addition provides full-scale promotional products services that help global brands build culture, awareness and meaningful connections. We extend our clients’ values in thoughtful, sustainable, globally conscious ways to create branded moments that people love
Slide 18: Segmental Analysis FY 21
THE PEBBLE GROUP Segmental Analysis FY 21 £’m FY 21 FY 20 FY 19 Commentary Revenue 102.4 72.6 97.9 Full recovery ahead of FY 19 Gross profit 29.3 21.2 30.8 Successfully navigated supply chain challenges People & overhead (19.4) (16.0) (20.1) FY 20 included furlough contributions and temporary salary
Slide 19: Immediate and full recovery compared to pre-COVID-19 performance
Immediate and full recovery compared to pre-COVID-19 performance FY 21: full and £98m £73m £102m immediate return above FY 19 10 1. Consumer promotions - growth was achieved with our existing clients, who, throughout the pandemic, have continued to use 3 promotional products as a strategic marketing
Slide 20: Revenue Diversity: strong sectors, across multiple geographies
THE PEBBLE GROUP Revenue Diversity Strong sectors, Revenue by client sector % Revenue by destination % across multiple 4% 8% 9% FY 21 16% FY 21 geographies 8% 12% 26% 22% 11% FY 20 FY 20 31% 20% 11% 23% 20% 15% 15% 35% 42% 34% 38% Engineering Financial Services UK Europe Health, Beauty, FMCG Technol
Slide 21: Supply chain overview: actions, results, direction
THE PEBBLE GROUP Supply chain overview: Actions, results, direction Well-managed supply chain, meeting client delivery expectations Market conditions 2021 Action Inherent mitigants Result 2022 Direction 1. Raw material prices § Engaged with raw material suppliers directly, drove • Hold stock for Cor
Slide 22: Goals in 2022
Goals in 2022 § Continued retention of major clients and the successful implementation of contracts won in 2021 § Attract new contracts with major international brands § Well-managed supply chain, tracking gross margins back towards our 30% internal target (FY 21: 28.6%)
Slide 23: Environmental, Social and Governance (ESG)
THE PEBBLE GROUP Environmental, Social and Governance (ESG) Our framework Focussing our approach ESG cornerstone Priorities UN SDG* Impact of our business • Energy and climate change • Bespoke framework developed based upon on the environment and • Packaging and waste Group-wide materiality assessme
Slide 24: Environmental, Social and Governance (ESG): Our Progress
THE PEBBLE GROUP Environmental, Social and Governance (ESG) Our Progress • Implementation of a Global reporting framework for monitoring energy usage and carbon emissions • Started transitioning to renewable energy across the Group • Implementation of carbon neutral logistics options for outbound de
Slide 25: Group Outlook
THE PEBBLE GROUP Group Outlook The Pebble Group Facilisgroup Brand Addition To 18 March 2022 To 18 March 2022 The new financial year has GMV is 57% ahead of the prior Order intake has been positive. started well and in line with year comparative Sales invoiced or received to be our expectations invo
Slide 26: Financial Guidance
Financial Guidance
Slide 27: Financial Guidance
THE PEBBLE GROUP Financial Guidance § CAPITAL EXPENDITURE: § CURRENCY RATES: (excluding amounts capitalised under IFRS 16) Actual Actual Actual Est Actual Actual Est £:US$ 2019 2020 2021 2022 £m 2020 2021 2022 Income Statement (average rate) 1.28 1.28 1.38 1.35 Tangible 0.8 0.7 1.2 Balance Sheet (ye
Slide 28: Partner Activity, bridge of Partner growth in FY 21
THE PEBBLE GROUP Partner Activity, bridge of Partner growth in FY 21 FY 21 retention Partner numbers # Partners bridge # rate of 98% +8 -3 211 200 +31 +6 -3 -1 175 -2 200 149 119 127 2017 2018 2019 2020 2021 § New: Additional Partners implemented 175 § Acquired within FG: Partners businesses that ha
Slide 29: Order receipt and working capital dynamics
THE PEBBLE GROUP Order receipt and working capital dynamics Typical calendar Typical annual order cycle Typical working capital cycle year order receipt Brand Addition Total cycle and working July / Aug High Corporate Programmes capital dynamics in Consumer Promotions Brand Addition Low Jan Dec Dec
Slide 30: Building brands. Growing relationships. Strengthening businesses.
Building brands. Growing relationships. Strengthening businesses.