Slide 1: Fourth Quarter & Full Year 2021 Earnings Presentation
Fourth Quarter & Full Year 2021 EARNINGS PRESENTATION MARCH 8 | 2022
Slide 2: Forward Looking Information & Other Information
FORWARD LOOKING INFORMATION & 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 expe
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES 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 that s
Slide 4: Financial Outlook Full-Year 2022
FINANCIAL Full-Year 2022 OUTLOOK 18% - 22% Net Revenue Growth 13% - 17% Net Revenue Growth Ex-Advocacy $450M - $480M Adjusted EBITDA ~30% Free Cash Flow Growth Note: All figures presented on a Pro Forma basis giving effect to the combination as if it was completed on January 1, 2020. The Company has
Slide 5: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS NET DEBT: $1,060M | LTM ADJ. EBITDA: $378M | NET DEBT RATIO: 2.8X Robust Revenue Growth Digital Strength +21% y/y 4Q PF Organic Net Revenue Growth Ex-advocacy +32% y/y 4Q PF Organic Net Revenue Growth Ex-advocacy +11% with Advocacy despite lapping 2020 Presidential election
Slide 6: Summary Pro Forma Combined Financials
SUMMARY PRO FORMA COMBINED FINANCIALS Three Months Ended Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Net Revenue $ 519,692 $ 470,615 $ 1,926,814 $ 1,655,986 Billable Costs 92,235 170,615 297,529 431,039 Revenue 611,927 641,230 2,224,343 2,087,025 Billa
Slide 7: Ex-Advocacy Net Revenue & Adjusted EBITDA
EX-ADVOCACY NET REVENUE & ADJUSTED EBITDA $ in Millions Net Revenue Adjusted EBITDA 2021 2020 % Change 2021 2020 % Change Q4 Total 520 471 10.4% 104 109 -5.1% Advocacy 35 68 -48.0% 12 -69.5% Total Ex Advocacy 484 402 20.2% 92 70 31.2% Net Revenue Adjusted EBITDA 2021 2020 2021 2020 FULL Total 1,927
Slide 8: 2021 GAAP Consolidated Operating Performance
2021 GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended, Dec 31 Twelve Months Ended, Dec 31 2021 2020 2021 2020 Revenue 611,927 313,062 1,469,363 888,032 Cost of services 348,000 198,524 906,856 571,588 Office & general expenses 197,318 64,498 424,038 191,679 Depreciation & amortization 31,3
Slide 9: Pro Forma Net Revenue
PRO FORMA NET REVENUE Three Months Ended, Dec 31, 2021 Twelve Months Ended, Dec 31, 2021 Revenue Change Revenue Change December 31, 2020 470,615 1,655,986 Organic revenue 53,180 11.3% 240,191 14.5% Acquisitions (divestitures), net (4,640) -1.0% 15,159 0.9% Foreign currency 537 0.1% 15,478 0.9% Total
Slide 10: Introducing Principal Capabilities
INTRODUCING “PRINCIPAL CAPABILITIES” 1 Digital Transformation Building & Designing Digital Experiences for Clients 2 Performance Media & Data Addressable on a Global Scale 3 Consumer Insights & Strategy Tracking Across Consumer Journey 4 Creativity & Communications Blue-Chip Customer Base Note: Lega
Slide 11: Net Revenue by Principal Capability
NET REVENUE BY PRINCIPAL CAPABILITY % OF NET REVENUE Organic Growth Y/Y 23% Principal Capability 4Q PF FY 2021 4Q 21% 9% (2%) Digital Transformation 25% 47% Performance Media & Data 31% 11% Consumer Insights & Strategy 44% 46% Creativity & Communications 7% 24% 7% PF FY TOTAL 11% 15% 2021 19% 9% TOT
Slide 12: Net Revenue by Geography
NET REVENUE BY GEOGRAPHY % OF NET REVENUE Organic Growth Y/Y 14% 8% Geography 4Q PF FY 2021 4Q 78% 7% 14% United States United Kingdom 70% 34% Other 13% 12% 12% 7% TOTAL 11% 15% PF FY 2021 TOTAL EX-ADVOCACY 21% 18% 81% Note: Figures presented on a Pro Forma basis giving effect to the combination as
Slide 13: New Business Update
NEW BUSINESS UPDATE Net New Business Notable Logo EXPANSIONS Q4 2021 $75M H2 2021 $139M Large Contract Wins Notable Logo ADDITIONS Q4 2021 3 FY 2021 8 Note: All figures presented on a Pro Forma basis giving effect to the combination as if it was completed on January 1, 2020. 13
Slide 14: Global Network
GLOBAL NETWORK Stagwell’s Affiliate Network Significantly Expands Our Global Footprint Europe North America • Austria • Turkey • Belgium • Ukraine • Bulgaria • France • Italy • Germany • Canada • Latvia • Netherlands • USA • Lithuania • Poland • Mexico • Romania • Spain • • Slovak Republic Slovenia
Slide 15: Strategic M&A
STRATEGIC M&A Transaction 49% ACQUISITION (REMAINING STAKE) 100% ACQUISITION Leading digital brand and experience innovation The UK’s second largest independent media agency company that is one of Stagwell’s fastest growing with deep expertise in communications planning, Business Digital Transformat
Slide 16: Liquidity
LIQUIDITY Available Liquidity (as of 12/31/21) Commitment Under Credit Facility $500.0 Drawn $110.2 Undrawn Letters of Credit $24.3 Undrawn Commitments Under Facility $365.5 Total Cash & Cash Equivalents $184.0 Total Available Liquidity $549.5 16
Slide 17: Year-End Pro Forma Capital Structure
YEAR-END PRO FORMA CAPITAL STRUCTURE Net Debt & Debt-Like ($M) as of 12/31/21 Pro Forma Common Equity (Thousands) Revolving Credit Facility $110 Class A & B 132,005 Bonds $1,100 NCI1 $33 Class C 164,815 RNCI $43 DAC $227 Awards Out. 2,859 Less: Cash $184 TOTAL NET DEBT & DEBT-LIKE $1,329 FULLY DILUT
Slide 18: Appendix
| me SL ASWELL Appendix
Slide 19: Mapping Our New Principal Capabilities
MAPPING OUR NEW PRINCIPAL CAPABILITIES Legacy Lines of Business New Principal Capabilities Digital Digital Transformation Media Other Performance Media & Data Research Consumer Insights & Strategy Creative Public Relations Creativity & Communications Experiential Note Legacy Stagwell Group performan
Slide 20: Thank You
Thank You Contact Us: IR@StagwellGlobal.com