Rws Holdings Plc · LSE:RWS
Rws — Investor Day (March 2022)
147 slides from Rws's investor day presentation, Mar 23, 2022
Slide 1: RWS Capital Markets Day
RWS Capital Markets Day 23 March 2022 1 © 2022 RWS
Slide 2: Slide 2
Slide 3: Welcome
Welcome Andrew Brode Chairman ‹#› 3 © 2022 RWS
Slide 4: RWS today
RWS today Revenue PBT Expertise Reach 2003 £27m 2003 £6m 2003 2003 2005 £36m 2005 £7m 2007 £46m 2007 £11m 2009 £56m 2009 £15m 400 2011 £65m 2011 £16m 2013 £77m 2013 £21m 2021 2021 2015 £95m 2015 £23m 2017 £164m 2017 £43m 7,674 2019 £356m 2019 £74m 2021 £695m 2021 £116m Long track record of sustained
Slide 5: Investment proposition
Investment proposition Attractive Unique Strong cash Consolidation markets + platform + generation + opportunity • Well diversified • Largest linguist • Value creation • Fragmented markets • Strong growth network track record • Proven M&A success potential • True global coverage • Optionality to inv
Slide 6: 6
6
Slide 7: RWS Accelerated Growth Plan
Setting the scene RWS Accelerated Growth Plan 2022-26 Ian El-Mokadem Chief Executive Officer ‹#› 7 © 2022 RWS
Slide 8: Our aims for today
Our aims for today Explain how we plan to build on our unique market position Detail the Provide some Share our Illustrate how enabling deeper insights plans for technology is a investments into what accelerating critical enabler we plan to we do growth of our plans make Meet our team, understand ou
Slide 9: Speakers and agenda
Speakers and agenda Andrew Technology Des Group 2.00 Brode Welcome 3.30 Break 4.55 demonstration Glass financials RWS story Investment Ian El- Thomas Language 5.10 Ian El- proposition 2.05 Growth 3.55 Mokadem Labarthe Services Mokadem model Summary Mihai Language Ian, Maria, Jon, 2.40 Maria Operatin
Slide 10: Group overview
Group overview 10 © 2022 RWS
Slide 11: Strong portfolio, strong market leadership
Strong portfolio, strong market leadership Language Regulated Language & Content IP Services Services Industries Technology • Localisation solutions to • Life sciences • Linguistic AI - neural MT • Patent translation and mulitple verticals filing, search, retrieval • Financial services • Language te
Slide 12: Strong portfolio, strong market leadership
Strong portfolio, strong market leadership Language Regulated Language & Content IP Services Services Industries Technology • Localisation solutions to • Life sciences • Linguistic AI - neural MT • Patent translation and mulitple verticals filing, search, retrieval • Financial services • Language te
Slide 13: Revenue by division
Significant diversification since 2015 FY15 FY19 FY21 Life Sciences Technology Regulated Life Sciences Industries1 Technology by division IP Services Revenue Language IP Services Language Services Services IP Services Increasing exposure Expanding Focus on higher in Technology and addressable market
Slide 14: What's working
What’s working Long-term partnerships Highly technology-enabled with impressive client list Talented, experienced Many market tailwinds and passionate people Deep, global linguistic Proven financial model and subject matter expertise 14 © 2022 RWS
Slide 15: What's changing
What’s changing • Winning new logos Improve • Existing client growth via horizontal expansion Investing to increase organic competitive moat in • More exposure to higher-growth segments growth areas growth • Sales enablement and intensity Technology • P&L focus for language technology products produ
Slide 16: Purpose and who we are
Purpose and who we are 16 © 2022 RWS
Slide 17: Unlocking global understanding
Purpose Unlocking global understanding Who we are A unique, world-leading provider of technology-enabled language, content and IP services 17 © 2022 RWS
Slide 18: What we do
What we do 18 © 2022 RWS
Slide 19: The RWS proposition
The RWS proposition Through content transformation and multilingual data analysis, our unique combination of technology and cultural expertise helps our clients to grow by ensuring they are understood anywhere, in any language. 19 © 2022 RWS
Slide 20: Deep understanding differentiates us
Deep understanding differentiates us Client Technical Understanding Understanding RWS competitive advantage Cultural Understanding 20 © 2022 RWS
Slide 21: Four core use cases and outcomes
Four core use cases and outcomes Cultural Client Technical RWS brings Understanding Understanding Understanding Emotion Behaviour Regulation Data Customer Acquiring and outcomes Delivering User Maintaining Access to Retaining Experiences Compliance Insights Customers Localised Marketing Localised UI
Slide 22: All day we're helping you understand
All day we’re helping you understand 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Check social Browse guide Watch film Enter a route Check social media for new phone preview Global auto media Global Another global Another manufacturer Global tech co tech co global tech co tech co Search for Take Bid on
Slide 23: Who we work for
Who we work for 23 © 2022 RWS
Slide 24: Deep relationships, high loyalty and satisfaction
Deep relationships, high loyalty and satisfaction • Diversified client base: 16 of 90 of the Fortune’s 20 of the top 20 top 20 • Top 10 = 30% Group revenues top 100 most pharma brands admired companies • Top 30 = 41% Group revenues companies • Average tenure: 19 of the Major • 16 years (Top 10) glob
Slide 25: How we support clients
How we support clients Acquiring and Delivering User Maintaining Access to Insights Retaining Customers Experiences Compliance Global sportswear Global technology Global life sciences Global law retailer company corporation firm Supporting regulatory Supporting eDiscovery – Supporting launch of Supp
Slide 26: Where we play
Where we play 26 © 2022 RWS
Slide 27: Where we play
RWS offer Where we play No presence Analyse & Launch & Value chain Create Transform Engage Manage Medium Text Audio Video 27 © 2022 RWS
Slide 28: How we view technology
How we view technology 28 © 2022 RWS
Slide 29: Using technology to harness growth
Using technology to harness growth 640,000¹ 2,000² 1.3 billion translators globally X words/day (on average) = words translated /day Global generation 2.5 quintillion of bytes of data (daily) = bytes³ • While not all of this is for human consumption or requires translation, even a small percentage w
Slide 30: Solutions across the entire people/technology spectrum
Solutions across the entire people/ technology spectrum Medical and Knowledge eLearning User forums pharma content bases Patent Websites Email support Text analytics translation HUMAN EXPERTISE TECHNOLOGY 30 © 2022 RWS
Slide 31: Solutions across the entire people/technology spectrum
Solutions across the entire people/ technology spectrum Medical and Knowledge eLearning User forums pharma content bases Patent Websites Email support Text analytics translation FREE MACHINE TRANSLATION TOOLS HUMAN EXPERTISE TECHNOLOGY 31 © 2022 RWS
Slide 32: Demand drivers
Demand drivers 32 © 2022 RWS
Slide 33: RWS positive demand drivers
RWS positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Annual volume >3k rules/regulations Capex investment AI to contribute Value of global trade of data to reach added annually to
Slide 34: Market size
Market size Area Mkt Size (£bn) Language Services – core localisation 30.0 Language Services – data annotation 2.0 Life Sciences – localisation 3.0 Finance & Legal – localisation 4.0 Linguistic AI 3.0 Language Technology 0.3 IP Services 2.0 Content Technology 2.8 Total 47.1 34 © 2022 RWS Sources: OC
Slide 35: Market growth rates – our approach
Market growth rates – our approach Diagnosis Growth rates vary across our end markets Move into higher growth adjacencies Response Increased exposure to life sciences Higher proportion of revenue from technology products Weighted average underlying market growth rate: Transition 4% FY22-24 revenue m
Slide 36: How we win
How we win 36 © 2022 RWS
Slide 37: RWS Growth Model
RWS Growth Model Why we are unique • Broadest range of services and products Building long-term client • Configurable solutions to meet any mix of quality, value, speed relationships • Dedicated sector account management teams • Specialist sector expertise, e.g. IP services; life sciences; global te
Slide 38: How we think, act and behave
How we think, act and behave 38 © 2022 RWS
Slide 39: Our values
Our values X X = We play as one team – We shape the future – We choose to be We keep our promises with colleagues, clients combining the best of positive – using every – to clients, colleagues and partners people and technology experience to grow and communities 39 © 2022 RWS
Slide 40: How we organise and operate
How we organise and operate 40 © 2022 RWS
Slide 41: Operating philosophy
Operating philosophy Loose-tight leadership Embracing the future • Active integration of technology into • Divisional ownership and accountability business model • Effective and lean central support functions • Constant service and product innovation • Small head office • Leading change in the indus
Slide 42: How we make a difference
How we make a difference 42 © 2022 RWS
Slide 43: Environmental and governance
Environmental and governance • UN Global Compact – participant in Communication on Progress Early Adopter Programme (only 5% of members globally) Sustainability • Continue to increase engagement with stakeholders on materiality • Reporting against SASB standards • Finalising FY21 company report agai
Slide 44: Social – unlocking global understanding
Social – unlocking global understanding • Rich and natural diversity • Health, safety and wellbeing of colleagues – pandemics and conflict Our • Values survey (January 22) – 56% participation people • Active Employee Resource Groups – culture, D&I, environment • Successful launch of MyLX – group-wid
Slide 45: How we will get there
How we will get there 45 © 2022 RWS
Slide 46: Investing to support accelerated growth
Investing to support accelerated growth Payback period Long-term Investment behind sales enablement <12 BAU opex relationships Drive new logos and grow existing accounts months Cultural and Increase Technology platform to support Data Annotation services 12-24 technical competitive moat People and t
Slide 47: What success looks like
What success looks like 47 © 2022 RWS
Slide 48: Phased returns
Phased returns FY22-24 FY24-26 Invest for growth Improved growth and leverage Organic Revenue In line with Market Organic Revenue Outperform Market Growth market growth1 = 4% Growth market growth1 = 6% Adjusted PBT2 FY23 slight FY24 recovery Adjusted PBT2 200-300 Margin % Change reduction to FY22 le
Slide 49: Orientation
Orientation 49 © 2022 RWS
Slide 50: Unpacking the Group
Unpacking the Group Language Regulated Language & Content Services Technology IP Services Industries Language eXperience Delivery Corporate Legal & Company Finance HR Technology & Data Development Secretary 50 © 2022 RWS
Slide 51: Drive operational leverage from our platform
Drive operational leverage from our platform Words 1bn 2,000 In-house translated Projects 24 hrs 29,000 Freelance Maria Schnell 1m completed Average turnaround Chief Language Officer per project Translators 2021 ‹#› 51 © 2022 RWS
Slide 52: Overview
Overview Adapting Confirm Changing Improving solutions as operational role of the our delivery our clients leverage linguist platform evolve opportunity 52 © 2022 RWS
Slide 53: Language experience delivery – unique platform
Language experience delivery – unique platform Language Regulated LXD Services Industries THE Language IP Services Technology Helps us scale and reach like nobody else & Makes our language products better than any others 53 © 2022 RWS
Slide 54: Solutions for any language and target group
Solutions for any language and target group SOURCE LANGUAGE GENERIC English TARGET Spanish LANGUAGE Gallego Basque for the US Castellano International Catalan Spanish Spanish for the Mexican US-American Hipster Cuban SUBCULTURE TARGET LANGUAGES Colombian Venezualan Guatemalan Ecuadorian COUNTRY-SPEC
Slide 55: The role of the linguist is changing
The role of the linguist is changing Developing future linguists and 1 subject matter experts via RWS Drivers: Campus • Content explosion Incubating immature languages • Target languages – Indic / South East Asian / becoming more granular African: 2 • No concept of a translator • Personalisation, no
Slide 56: Operating platform overview
Operating platform overview Breadth of Market Automation Supply chain service coverage management • Translation • Present in 36 • Language Weaver – • Largest linguist • DTP countries MT network – 29,000 • Engineering • Freelancers in 169 • Productivity tools – freelancers • Testing countries Trados
Slide 57: Core workflow
Core workflow PDF = EN DE + + Content Languages Quality Speed Client review Client requestor Preparation Job Setup Translator Delivery to client Enabled by Adaptation Enabled by 57 © 2022 RWS
Slide 58: Trados explained
Trados explained 58
Slide 59: Where are we today?
Where are we today? Desired end state Breadth of Service Market coverage EN Automation Supply chain management 59 © 2022 RWS
Slide 60: Improvements
Improvements Breadth of Market Automation Supply chain service coverage management • More volume • Investing in • Rationalising • Improving through LXD talent enabling systems freelancer • Developing • Training future • Job routing experience capabilities to linguists automation, via • Recruitment m
Slide 61: Programme outline – focus on early benefit delivery
Programme outline – focus on early benefit delivery 2022 2023 2024 2025 2026 Today Vendor analysis Centralised vendor Vendor consolidation (single database) management Vendor allocation (automation) Connectivity to language delivery Client process mapping; connectivity automation; tooling Automation
Slide 62: Operational leverage opportunity
Operational leverage opportunity GROSS AND NET MARGIN BENEFIT TRANSLATION COST TRANSLATION COST PROJECT DELIVERY COST PROJECT DELIVERY COST 2022 2026 62 © 2022 RWS
Slide 63: Key takeaways
Key takeaways Long-term relationships Great Path to most Cultural and foundations – technical expertise efficient and Significant greater effective transformation simplification operating programme required model Unique technology and AI Developing Scalable to our portfolio Operational allow easy le
Slide 64: Regulated Industries
Regulated Industries 23% Group Jon Hart £163m £28m Revenue Group President, Revenue FY21 Adj. Operating Profit FY21 24% Adjusted Operating Regulated Industries Profit ‹#› 64 © 2022 RWS
Slide 65: Overview
Overview Overview Demonstrate Strategy Highlight macro of clients the customer to accelerate growth tailwinds and service lines experience organic growth 65 © 2022 RWS
Slide 66: Regulated Industries – positive demand drivers
Regulated Industries – positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Life sciences Finance and legal £7bn Total addressable market £3bn Market size 2022 £4bn Market size 2022 +
Slide 67: Our unparalleled client base
Our unparallelled client base Long-term relationships 20 of the top 20 19 of the top 20 18 of the top 20 law Cultural and pharmaceutical medical devices firms technical expertise companies companies Unique technology and AI Developing our portfolio Trusted adviser for high-quality, sensitive Leverag
Slide 68: Our specialised offering – life sciences focus
Our specialised offering – life sciences focus Long-term relationships Cultural and Services we offer The expertise we bring technical expertise Localisation of regulatory filings Highly specialised pool of for medical devices and pharmaceuticals dual-qualified linguists Unique technology and AI Lin
Slide 69: Technology x expertise
Technology x expertise Long-term relationships Outcomes Cultural and Specialist when deployed together technical expertise with our unique expertise termbases Speed Unique technology and AI Machine Consistency translation Developing Quality our portfolio Security Translation management Leveraging sc
Slide 70: Major players in COVID vaccine and treatment race trusted RWS
Major players in COVID vaccine RESULTS and treatment race trusted RWS with critical COVID projects Tailored platform and processes to meet increased security criteria – in 2 weeks 12 acceleration strategies Reduced delivery times Rolled out to Helped clients Urgency required Ironclad security Lingui
Slide 71: Investing in growth
Investing in growth Long-term relationships Accelerate Linguistic Validation Cultural and technical expertise Organic Win and drive new accounts extensions Unique technology Clinical Operations and AI Study Start-Ups Developing our portfolio Exploring Life sciences-focused LSPs M&A Leveraging scale
Slide 72: Benefitting from the wider Group
Benefitting from the wider Group Long-term relationships Cultural and technical expertise Leveraging our LXD capability Unique technology and AI Further process automation Developing our portfolio Enhanced technology-enabled offering Leveraging scale and reach 72 © 2022 RWS
Slide 73: Key takeaways
Key takeaways Our expertise Our market We serve a truly and technology We have a clear is structurally exceptional set deliver uniquely and focused plan high growth of clients against client for growth needs 73 © 2022 RWS
Slide 74: Panel Q&A
Panel Q&A 74 © 2022 RWS
Slide 75: End of part one
End of part one 75
Slide 76: Welcome back
Welcome back RWS Accelerated Growth Plan 2022-26 Thomas Labarthe President, Language Services and Technology ‹#› 76 © 2022 RWS
Slide 77: Speakers and agenda
Speakers and agenda Thomas Language Des Group 3.55 4.55 Labarthe Services Glass financials Investment Mihai Language Ian El- proposition 4.15 5.10 Vlad Weaver Mokadem Summary Ian, Maria, Jon, Thomas Trados & 4.30 5.15 Thomas, Mihai, Panel Q&A Labarthe Tridion Christopher, Des Christopher Drinks & ca
Slide 78: Language Services
Language Services 46% Thomas Group £318m £47m Revenue Group Labarthe Revenue FY21 Adj. Operating Profit FY21 40% Adjusted Operating President, Language Services Profit and Technology 78 © 2022 RWS
Slide 79: Overview
Overview Client Value of our Key organic segments Market expertise and growth and service dynamics technology drivers offering 79 © 2022 RWS
Slide 80: Language Services – positive demand drivers
Language Services – positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Localisation services Data annotation £32bn Total addressable market £30bn Addressable market £2bn Addressable
Slide 81: Broad and diverse customer base
Broad and diverse customer base Long-term relationships High share of wallet Cultural and in 90 of top 100 technical expertise global consumer brands, including Major accounts major technology ~45% Unique technology businesses GoGlobal and AI accounts ~5% Developing our portfolio Tech enterprises ~5
Slide 82: Unparalleled expertise – extreme quality at extreme scale
Unparallelled expertise – extreme quality Long-term relationships at extreme scale Largest global Cultural and network of technical expertise linguists Curated crowd with specialist Unique technology capabilities and AI Best fit delivery model Developing our portfolio Deliver across all content Leve
Slide 83: Our differentiated offering
Our differentiated offering Long-term relationships Broad range of services… …to meet critical use cases Cultural and technical expertise All content types, incl. multimedia Acquiring and retaining clients Unique technology Language quality assurance Delivering user experiences and AI Data annotatio
Slide 84: Always enabled by technology
Always enabled by technology Long-term relationships How it helps our clients How it helps our teams Cultural and technical expertise Tech Customisation and • Automation for speed enterprise tailored integration and efficiency Unique technology Major Configurable solutions, • Route content to most e
Slide 85: Marketing content localisation for a global electronics conglomerate
Marketing content localisation for a global electronics conglomerate “RWS…enables [us] to have a unique and coherent messaging to our clients in all markets. I truly believe that RWS has become a real member of our team and brings a great added value to the marketing of our products in international
Slide 86: CCEP achieve dramatic cost savings with RWS language technologies
CCEP achieve dramatic cost savings with RWS language technologies RESULTS 70% fewer POs for translation agencies The world’s largest Tremendous We provided a more independent demand for efficient and Coca-Cola bottler translation cost-effective way to Faster translation – minutes with 42 locations s
Slide 87: Focused plan
Focused plan Long-term relationships Sales enablement Faster than Cultural and market growth technical expertise Leading tech-enabled localisation Unique technology Data annotation and AI Organic eLearning localisation Developing extensions our portfolio Self-service in GoGlobal accounts Leveraging
Slide 88: Benefitting from the wider Group
Benefitting from the wider Group Long-term relationships Cultural and Leveraging Leverage Leverage technical expertise our LXD global scale technology capability to efficiently portfolio Unique technology deliver and AI common needs Developing our portfolio Leveraging scale and reach 88 © 2022 RWS
Slide 89: Key takeaways
Key takeaways Unique range Focus on of services, Technology Clear plan to higher fantastic and people deliver growth differentiation range of growth segments clients 89 © 2022 RWS
Slide 90: Language and Content Technologies
Language and Content Technologies 14% Thomas Group £100m £23m Revenue Group Labarthe Revenue FY21 Adj. Operating Profit FY21 19% Adjusted Operating President, Language Services Profit and Technology 90 © 2022 RWS
Slide 91: Technology portfolio
Technology portfolio Language Trados Tridion Weaver Machine Translation Content translation & management management linguistic AI & productivity 91 © 2022 RWS
Slide 92: Strategy for technology
Strategy for technology Simplify our portfolio Focus on growth markets Increase SaaS revenues (Re-)establish our leadership position 92 © 2022 RWS
Slide 93: Language Weaver
Language Weaver Mihai Vlad President, Language Weaver ‹#› 93 © 2022 RWS
Slide 94: Overview
Overview Illustrate Explain value Illustrate Demonstrate Language Language market our Weaver’s Weaver gets growth competitive products and from and opportunity advantage use cases gives to the Group 94 © 2022 RWS
Slide 95: History of Language Weaver
History of Language Weaver Pioneering new natural language processing and machine learning techniques Early 2000s Late 2000s Early 2010s Late 2010s Moving forward Researchers in Evolving our Underpinning Introducing the Los Angeles solutions for SDL Language latest neural Enhanced govts. and large D
Slide 96: Language Weaver serves three core use cases
Language Weaver serves three core use cases Internal Multilingual Machine enterprise content translation for translation portal intelligence aid localisation ~30% of revenue ~30% of revenue ~35% of revenue FY21 FY21 FY21 96 © 2022 RWS
Slide 97: Investment insights published faster with help of machine translation
A globally renowned Investment insights published faster with financial information help of machine translation company A globally renowned financial information company has been using RWS machine translation (MT) to translate financial content for 10 years. RESULTS 20bn words per year translated wi
Slide 98: Broad range of multi-sector clients
Broad range of multi-sector clients Long-term relationships Government Cultural and Finance, legal and life and defence technical expertise sciences On-premises secure translation solution for defence intelligence applications Enable secure internal communications between global offices Allow govern
Slide 99: Our technology heritage combined with our linguistic expertise differentiates us
Our technology heritage combined with Long-term relationships our linguistic expertise differentiates us Cultural and Deep technical expertise linguistic Attractive expertise UX Market- Unique technology leading and AI Diverse set Smart MT of language Adaptable AI models product pairs Developing our
Slide 100: Truly unique offering versus competitors
Truly unique offering versus competitors Long-term relationships Cultural and Enterprise- Proprietary technical expertise grade security Smart MT and scalability technology Unique technology and AI Developing our portfolio 'Human in the loop' Leveraging scale and reach 100 © 2022 RWS
Slide 101: Language Weaver – positive demand drivers
Language Weaver – positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Language Weaver £3bn Addressable market +20% pa 22-26 CAGR 101 © 2022 RWS Sources: expert interviews, client int
Slide 102: Investing in growth
Investing in growth Long-term relationships Cultural and technical expertise Expand Sales and R&D to Explore integrations marketing pioneer new additional and enhancement use cases capabilities Unique technology partnerships through M&A and AI Developing our portfolio Leveraging scale and reach 102
Slide 103: Accelerated growth for Language Weaver
Accelerated growth for Language Weaver Long-term relationships Cultural and technical expertise Unique technology and AI Developing our portfolio Leveraging scale and reach 103 © 2022 RWS
Slide 104: Mutually beneficial ecosystem
Mutually beneficial ecosystem Long-term relationships Enable smart Cultural and Improve technical expertise routing speed of LXD delivery Unique technology Enriched and AI client relationships Developing our portfolio RWS linguists Helping other fine-tune our RWS products AI models Leveraging scale
Slide 105: Key takeaways
Key takeaways We are We have a We have a Language positioned in compelling unique Weaver is key a high- range of offering as to Group growth products part of RWS strategy market 105 © 2022 RWS
Slide 106: Trados
Trados Language Technologies 106 © 2022 RWS
Slide 107: Overview
Objectives Overview Product suite Market Invest for and use cases dynamics growth 107 © 2022 RWS
Slide 108: We serve three connected but distinct use cases
We serve three connected but distinct use cases Workflow and Collaboration Individual USE CASES process between teams translation management PRODUCTS Translation Collaboration Computer- management assisted systems translation 108 © 2022 RWS
Slide 109: Language technologies – positive demand drivers
Language technologies – positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Language technologies £300m+ Addressable market +5-7% pa 22-26 CAGR 109 © 2022 RWS Source: internal data;
Slide 110: Broad customer base
Broad customer base Long-term relationships Workflow and Collaboration Individual process mgmt. between teams translation Cultural and technical expertise Corporate LSPs Unique technology Freelancers and AI RWS internal Developing our portfolio REVENUE Bundled MODELS with services
Slide 111: Paula's Choice deployed Trados in just two days
Long-term relationships Paula’s Choice deployed Trados in just two days to support rapid growth Cultural and technical expertise RESULTS Implementation in 2 days, including integration with Unique technology Salesforce Commerce Cloud and AI Innovative, super-adaptive and “We formed a true partnershi
Slide 112: Evolving offering to a single platform
Evolving offering to a single platform Long-term relationships Cloud-based Cultural and technical expertise Workflow and process management Unique technology and AI Collaboration between teams Developing our portfolio Individual translation Leveraging scale and reach 112 © 2022 RWS
Slide 113: Improved go-to-market focus
Improved go-to-market focus Long-term relationships …To From… Cultural and Improved flexibility and scalability technical expertise Convergence to Trados Enterprise Feature-rich but hard- with staged migration programme for existing customers Unique technology to-deploy portfolio of and AI overlappi
Slide 114: Focused plan
Focused plan Long-term relationships Phase 3 (FY24 and beyond) Phase 2 (H2 FY22-FY23) Grow and build out Cultural and Migrate and technical expertise Phase 1 (Now) new wins Competitive advantage Unique technology and AI Flat revenue High growth revenue Developing Growing SaaS % Growing SaaS % our po
Slide 115: Key takeaways
Key takeaways Critical Compelling Investing for component product suite growth for services portfolio 115 © 2022 RWS
Slide 116: Tridion
Tridion Content Technologies 116 © 2022 RWS
Slide 117: Overview
Overview Introduce Product Market Growth latest portfolio dynamics drivers acquisition 117 © 2022 RWS
Slide 118: Refocusing where we can win
Refocusing where we can win Aerospace and Structured content Web content USE CASES defence CMS management management PRODUCTS Contenta Tridion Docs Tridion Sites and Fonto Continuing to Drive growth Manage global review the strategy accounts 118 © 2022 RWS
Slide 119: The future of documents
The future of documents Author Govern Repurpose Customer service Marketing Training and learning Claim management Write content one Each block reviewed, Publish personalised collections chunk at a time translated only once for needs of each group Sector expansion Manufacturing High-tech Business Ser
Slide 120: Tridion – positive demand drivers
Tridion – positive demand drivers Increasing ESG Changing Explosion of Continued Growth in AI / / regulatory globalisation data / content innovation automation requirements market Web and structured content management £2.8bn 2021 Market size ~10% pa 22-26 CAGR 120 © 2022 RWS Source: internal data; d
Slide 121: Big auditor steps into the future
Big 4 auditor steps into the future RESULTS PROBLEM The complexity of the Disjointed processes: Slow and outdated content in an audit myriad of disparate environment resulting in is enormous solutions authors using MS Word with manual workarounds 40% The company chose our unique knowledge management
Slide 122: Tridion – a platform for growth
Tridion – a platform for growth Long-term • Average tenure of 10 years, relationships many clients are Fortune 500 Tridion Docs Cultural and • Defining the future of documents for technical expertise a broader set of industries, incl. SMEs and Fonto Unique technology • Pioneering use of semantic AI
Slide 123: Key takeaways
Key takeaways Innovative Compelling proposition Positioned part of in Tridion for growth Group story plus Fonto 123 © 2022 RWS
Slide 124: Enhancing growth and returns through M&A
Enhancing growth and returns through M&A Christopher Lewey Group Corporate Development Director 124 ‹#› © 2022 RWS
Slide 125: Overview
Overview Clear Acquisition Track record priorities screening 125 © 2022 RWS
Slide 126: Transforming our business through successful acquisitions
Transforming our business through successful acquisitions Timeline of significant acquisitions Oct 2011 Nov 2015 Nov 2017 Jan 2019 Nov 2020 inovia – $30m1 CTi – $70m Moravia – $320m Alpha – $6m SDL – £625m IP Services Life Sciences Life Sciences Legal and Financial Localisation Services and Technolo
Slide 127: Transforming our business through successful acquisitions
Transforming our business through successful acquisitions FY15 FY19 FY21 Technology Technology Life Sciences Regulated Life Sciences Industries¹ by division IP Services Revenue Language Services Language IP Services Services Technology IP Services Rest of World UK Rest of World UK US + Others UK by
Slide 128: Case study: building a Regulated Industries division
Case study: building a Regulated Industries division £163m revenue ~£2m 2009 Communicare Industry £28m adjusted operating ~£2m 2013 Pharmaquest powerhouse profit FY21 Acquisition Consideration ~$70m 2015 CTi Underlying high single digit 20/20 top Blue-chip ~$83m 2017 LUZ pharma divisional growth com
Slide 129: Case study: SDL acquisition
Case study: SDL acquisition Partially Fully Exceeded achieved achieved expectations Strong balance sheet and Acquired Doubled platform to invest in LXD scale and organic/inorganic growth capability delivery Enhanced capacity Combined RWS technical EPS Targets at time of acquisition language expertis
Slide 130: Broad range of acquisition opportunities
Broad range of acquisition opportunities c25% served by large players Total market = £47bn Highly fragmented 130 © 2022 RWS Sources: WIPO, EPO, Annual Reports and Financial Filings, Slator, CSA, OC&C
Slide 131: Strategic M&A priorities
Strategic M&A priorities Localisation New Assets that Data assets with capabilities broaden our annotation attractive end in technology- natural solutions market enabled language exposure language processing services capabilities 131 © 2022 RWS
Slide 132: M&A options screened against same key requirements
M&A options screened against same key requirements All targets 1st stage Do they fit with our strategic priorities? 2nd stage Do they enhance the organic growth profile of the group? …the remaining targets will then be 3rd stage measured against these three metrics: Valuation Priority target list Ea
Slide 133: Key takeaways
Key takeaways We have an Continue to We have Very impressive have clear priorities significant track record of disciplined for future M&A landscape M&A approach 133 © 2022 RWS
Slide 134: Group Financials
Group Financials Des Glass Chief Financial Officer 134 ‹#› © 2022 RWS
Slide 135: Updated outlook
Updated outlook • Strong performance in Regulated Industries Divisional growth • Language and Content Technology achieving accelerated growth • Weakness in recent IP Services performance Unitary patent • EPO allowing delays to granting of patent applications in advance of UP in H2 CY22 • Priority re
Slide 136: There is a lot to be excited about in our markets
There is a lot to be excited about in our markets Our unique combination of technology and people makes client adoption of MT an opportunity, not a threat Data Annotation Exciting new Linguistic Validation growth markets Content Intelligence Mid-market client adoption of language and content technol
Slide 137: Investing to support accelerated growth
Investing to support accelerated growth Payback period Long-term Investment behind sales enablement <12 BAU opex relationships Drive new logos and grow existing accounts months Cultural and Increase Technology platform to support Data Annotation services 12-24 technical competitive moat People and t
Slide 138: We are fundamentally improving our business mix
We are fundamentally improving our business mix FY26F FY21 IP Services IP Services by division Revenue Technology Language Language Services Technology Services Regulated Regulated Industries Industries Weighted average underlying market +4% +6% growth rate SaaS as % of technology ~25% >50% revenues
Slide 139: Phased returns
Phased returns FY22-24 FY24-26 Invest for growth Improved growth and leverage Organic Revenue In line with Market Organic Revenue Outperform Market Growth market growth1 = 4% Growth market growth1 = 6% Adjusted PBT2 FY23 slight FY24 recovery Adjusted PBT2 200-300 Margin % Change reduction to FY22 le
Slide 140: Investments governed by capital allocations policy
Investments governed by capital allocations policy Continued strong cash generation demands disciplined capital allocation Continue to support the divisions to drive base case BAU spend organic growth and sustain infrastructure Invest to accelerate Invest in growth areas, technology products and 1 o
Slide 141: Strong track record of delivering shareholder value
Strong track record of delivering shareholder value Revenue PBT Adjusted EPS1 Full Year DPS 2003 £27m 2003 £6m 2017 14.3p 2005 1.2p 2005 £36m 2005 £7m 2018 17.4p 1.7p 2007 2007 £46m 2007 £11m 2019 21.3p +14% 2009 2.3p 2009 £56m 2009 £15m 2020 400 19.9p 2011 3.1p 2011 £65m 2011 £16m 2021 23.8p 2013 4
Slide 142: RWS Accelerated Growth Plan – Summary
Summary RWS Accelerated Growth Plan 2022-26 Ian El-Mokadem Chief Executive Officer 142 ‹#› © 2022 RWS
Slide 143: What we shared today
What we shared today Explained how we plan to build on our unique market position Detailed the Provided some Shared our Illustrated how enabling deeper insights plans for technology is a investments into what accelerating critical enabler we plan to we do growth of our plans make Met our team, under
Slide 144: Strategy on a page
Strategy on a page Purpose Why we exist Unlocking global understanding Our A unique, world-leading technology-enabled language, Who we are business content and IP services business Through content transformation and multilingual data analysis, our unique Proposition What we do combination of technol
Slide 145: Investment proposition
Investment proposition Attractive Unique Strong cash Consolidation markets + platform + generation + opportunity • Well diversified • Largest linguist • Value creation • Fragmented markets • Strong growth network track record • Proven M&A success potential • True global coverage • Optionality to inv
Slide 146: Panel Q&A
Panel Q&A 146 © 2022 RWS
Slide 147: Leaders in Language
Leaders in Language 147