Stagwell Inc. · NASDAQ:STGW
Stagwell — Investor Day (November 2021)
14 slides from Stagwell's investor day presentation, November 2021
Slide 1: Sustainable Value Creation
SUSTAINABLE VALUE CREATION NOVEMBER | 2021
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation contains forward-looking statements. Statements in this presentation that are not historical facts, including without limitation the information under the heading "Financial Outlook" and statements about the Company’s beliefs and expec
Slide 3: Forward Looking Statements & Other Information: Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & OTHER INFORMATION Non-GAAP Financial Measures In addition to its reported results, Stagwell Inc has included in this presentation certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes tha
Slide 4: The Stagwell Investment Premise
THE STAGWELL INVESTMENT PREMISE $450MM Acquired Revenue Build Why? $450MM Value added investment platform 1 accelerates acquired businesses $296MM Ample opportunity to deploy capital 2 in large addressable markets $171MM A scalable sourcing, targeting, $70MM 3 evaluation and execution process 2022P
Slide 5: The Capital Deployment Marketplaces
THE CAPITAL DEPLOYMENT MARKETPLACES Marketing Services & Digital Media STAGWELL MARKETING CLOUD Digital Data & Software Transformation Products 5
Slide 6: A Roadmap for Global Expansion
A ROADMAP FOR GLOBAL EXPANSION North ~$1.8B Rest of ~$0.3B America Stagwell Revenue World Stagwell Revenue STAGWELL AFFILIATES Note: Pro Forma LTM GAAP Revenue 6
Slide 7: Case: Scaling Global Digital Transformation
CASE: SCALING GLOBAL DIGITAL TRANSFORMATION Mexico Costa Rica Venezuela Added LATAM digital transformation +130% +297 Brazil Q3’21 YOY ENGINEERS capabilities & clients NET REVENUE ACROSS Argentina Uruguay GROWTH LATAM to Code & Theory Added content & design practices +79% +52 Q3’21 YOY UX AND & blue
Slide 8: A Syncronized and Scalable Pipeline
A SYNCRONIZED AND SCALABLE PIPELINE Banks Brands Affiliates 75+ 12+ 30+ Global Investment Deputized Global Banking Relationships Network Leaders Partners CENTRALIZED CORPORATE CRM 8
Slide 9: A Track Record of Execution
A TRACK RECORD OF EXECUTION 35+ 7 5+ Investments closed & Bolt-ons acquired Incubator integrated since 2015 with brand CEO support investments Illustrative Pipeline Acquired Net Revenue (LTM at Close, $mm) >200 opportunities sourced >$6B total Revenue >100 opportunities evaluated by IC >$3B total Re
Slide 10: A Rubric for Evaluation and Structure
A RUBRIC FOR EVALUATION AND STRUCTURE Key Quality Illustrative Examples Blue Chip + Secular Growth 1 CLIENTS + 2 CAPABILITIES High value strategic consultants in rapidly growing marketplaces 3 TALENT Cohesive teams with balanced responsibilities and strong next generation leadership Maximize balance
Slide 11: Case: Scaling Up Media Group
CASE: SCALING UP MEDIA GROUP Year Focus Acquisitions STAGWELL HAS 2016 US Digital Media GROWN OUR 2017 UK Digital Media MEDIA GROUP TO ~$5BN 2018 US Social & Global Travel Media IN SPEND 2019 US B2B And West Coast Presence OVER SIX YEARS 2020-2021 Full Service Global Footprint 11 Note: Reflects SMG
Slide 12: Stagwell Is Poised to Create Further Value
STAGWELL IS POISED TO CREATE FURTHER VALUE Illustrative $100M investment in 2022 2025 Theoretical Value Creation Per Share $ in millions 2022 2023 2024 2025 Incremental Value (30% IRR) 0 30 69 120 Cash Flow from Acquisitions 6 16 31 52 Total Incremental Value 6 46 100 171 / FDSO 296 296 296 296 Incr
Slide 13: Case: Reputation Defender
CASE: REPUTATION DEFENDER Apr-3, 2018 Stagwell acquires Stagwell created Reputation Defender at the recommendation of a network CEO significant value through development of ExecutivePrivacy Sep-15, 2021 digital product & Stagwell receives unsolicited offer optimizing media mix for Reputation Defende
Slide 14: Thank You
| me SL ASWELL Thank You