Slide 1: 2021 Results
2021 Results Annual Results for the year ending 31st December 2021
Slide 2: Agenda
AGENDA 1 2 3 WHAT HAPPENED? WHAT NOW? WHAT NEXT? Financial Review Business Review Outlook and Plans
Slide 3: What Happened? Financial Review
1 WHAT HAPPENED? Financial Review
Slide 4: Profit & Loss
PROFIT & LOSS (£’M) 2021 2020 % £ change • Revenue up 18% on 2020 153.3 121.9 31.4 • Profit up 5% on market expectations BILLINGS • Client retention statistics remain excellent: REVENUE 72.5 61.5 11.0 18% • 47%+ from Clients of 5 yrs or more • 31% from 10+ yrs, 14% from 20+ yrs OPERATING EXPENSES (6
Slide 5: Balance Sheet Strength
BALANCE SHEET STRENGTH ACQUISTION OBLIGATIONS AT LOWEST LEVEL SINCE 2013 Acquisition Obligations £m LEVERAGE RATIOS WELL WITHIN COVENANTS 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 Bank facilities renewed Q1 2021: Timing of current acquisition obligations: £20m f
Slide 6: Balance Sheet
BALANCE SHEET (£’M) 2021 2020 INTANGIBLES 99.0 96.2 Working capital increase driven by FIXED ASSETS/INVESTMENTS 2.6 2.7 • catch-up of 2020 HMRC deferral schemes (£3.1m) WORKING CAPITAL 6.9 2.2 • supporting growth in H2 (£1.6m) NET BANK DEBT (10.3) (1.2) EARN-OUT OBLIGATIONS (3.3) (8.5) TOTAL NET DEB
Slide 7: Net Bank Debt Movement, Efficient Cash Conversion
NET BANK DEBT MOVEMENT (£’M) EFFICIENT CASH 12.0 CONVERSION 0.1 10.3 10.0 2.0 8.0 1.8 110% average conversion ratio over 1.4 0.2 0.7 the three years to 2021 £m 6.0 1.2 6.7 4.0 3.1 5.5 Cash flow from operations / operating profit % 1.2 2.0 3 year MAT 0.0 140% 2021 Deferred Delayed Deferred Normal Pri
Slide 8: Progressive Dividend Strategy
PROGRESSIVE DIVIDEND STRATEGY • 2021: Final dividend of 1.60p proposed • Total dividend 2.40p, up 4% on 2019 2.7x cover on Headline Diluted EPS
Slide 9: In Summary
IN SUMMARY • 18% Revenue growth • Effective conversion of Revenue to Profit • Low level of Acquisition Obligations • Excellent record of Cash conversion • Progressive Dividend strategy
Slide 10: What Now? Business Review
2 WHAT NOW? Business Review
Slide 11: Mission Is Working
MISSION IS WORKING • Improved Agency performance across the board • Successfully added complementary businesses and services • Repositioned some existing businesses to better reflect Client demand • Group perfectly placed to capitalise on Client drive for ‘Collective Specialism’ • Continued to inves
Slide 12: Agency Performance
AGENCY PERFORMANCE VS 2020 COVID-19 RESILIENT SECTORS AND PERFORMERS CONTINUED TO PERFORM 15% revenue 31% revenue 26% revenue COVID-19 IMPACTED SECTORS STARTING TO BOUNCE BACK 34% revenue 40% revenue 33% revenue
Slide 13: Top Clients and Sectors
TOP 5 CLIENTS AND SECTORS YOY REVENUE % OF TOTAL CLIENT TENURE SECTOR CHANGE GROUP REVENUE 1. 31% 35 yrs 1. PROPERTY 18% 2. 37% 4 yrs 2. TECHNOLOGY 14% 3. 43% 7 yrs 3. HEALTHCARE 8% 4. 124% 2 yrs 4. PUBLIC SECTOR 7% 5. 87% 12 yrs 5. AUTOMOTIVE 7%
Slide 14: Outperforming Our Peers
OUTPERFORMING OUR PEERS WPP Publicis IPG Dentsu MISSION M&C Revenue growth (2021vs 2020) 6.5%** 8.8%* 13.0%* 15.6%* 18% 8.8%* Shore Capital: * Factset consensus ** Revenue less pass through costs
Slide 15: Mission New Business Is Working
MISSION NEW BUSINESS IS WORKING FUELING THE ‘AGENCY FIRST’ AGENDA BUT PROVIDING A SOLUTION FOR THE ‘MULTI-SPECIALIST’ BRIEFS Investment in Agency (Local) Marketing AGENCY ü Specialists, tight and agile team X A narrow, specific skill set and category experience AGENCIES ü Multifaceted category exper
Slide 16: Grouping Our Agencies
GROUPING OUR AGENCIES HOW WE SHOW OURSELVES TO OUR CLIENTS PURPOSE PERSUASION PROVISION
Slide 17: A Little Bit of Soul
Slide 18: Soul is a customer engagement agency
Soul is a customer engagement agency — and part of the Mission Group pic We help brands to create and keep customers. We know how to engage, when it matters most, in order to: Nurture interest and desire Increase conversion Increase customer value Keep customers for longer In terms of how best to en
Slide 19: Soul client logos
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Slide 20: Livity
Slide 21: Livity is a creative business
Livity is a creative business that works hand in hand with brands and the next generation to build the future better
Slide 22: Livity client work
Slide 23: Youth inspire and co-create everything we make
Youth inspire and co-create everything we make, through our youth network, and beyond. That network is made up of a diverse group of young people in the truest sense of the word. What unifies them all is a creative mindset, with a desire to positively impact the world in their own way. Creators // d
Slide 24: We help our clients change audience behaviour
We help our clients to change the behaviour of We specialise in… their target audience (be it employees or consumers) Sales Promotion We do this by first understanding the motivations Partnership Marketing of the audience and then creating engaging Reward & Recognition campaigns to impact thei
Slide 25: We ensure your audience are moved in the right direction
We ensure your audience are moved in the right direction. Our difference: CX insight and tools fuel our creativity, and creativity elevates our CX approach. We call it Creative CX. The output: Ever-evolving, intelligently joined up communication with your audience – and powerful results for you.
Slide 26: What Next? Outlook and Plans
3 WHAT NEXT? Outlook and Plans
Slide 27: In April
IN APRIL Story Edinburgh, Story Newcastle and Chapter Birmingham are coming together to form Story Group. Already sister agencies in culture, heart and spirit, together they unite to give scale, geographic reach, broad sector experience and a strong creative reputation.
Slide 28: Pathfindr: Ready to Grow
PATHFINDR: READY TO GROW • IIoT is thriving • Pandemic restrictions on visiting Clients nearly completely over • Core team in place – technology, procurement, sales, marketing and technical support • Product suite constantly evolving ahead of curve • Gen 3 GPS development utilizing new IOT networks
Slide 29: Pathfindr: Ready to Grow
PATHFINDR: READY TO GROW Some examples of trials currently underway in Q1 Ford Europe Global engine parts location & condition monitoring (Mexico/Spain) Ford ASPAC Parts logistics tracking (S.Africa/China) Ford China Electric vehicle parts logistics tracking and monitoring in-country Ford Supply Cha
Slide 30: Pathfindr: Constantly Innovating
PATHFINDR: CONSTANTLY INNOVATING • Potential partnership with; QTS Group, one of the UK's leading Rail Contractors, providing specialist services in Rail Engineering, Infrastructure, Electrification, Design & Training • 10 workers are killed every year resulting in £xxm potential fines and criminal
Slide 31: People That Count
PEOPLE THAT COUNT • There is no point ignoring it - The Great Resignation has made this an incredibly tough market in which to recruit, coupled with Industry wide wage inflation (offset by pricing realignment) • That’s why we constantly invest and innovate in securing the best and brightest talent,
Slide 32: People That Count
PEOPLE THAT COUNT ALSO EACH AGENCY IS INNOVATING TO SUPPORT THEIR EMPLOYER BRAND FOR EXAMPLE: ThinkAcademy • A prestigious learning environment delivering bespoke content on a range of courses for new recruits and continuing professional development for our teams • Gold Standard core modules written
Slide 33: Making Positive Change
MAKING POSITIVE CHANGE • It’s our ambition to become the UK’s leading, most respected Agency Group • We believe the impact MISSION makes on the world should be positive, always • We have mapped the carbon impact of the entire MISSION Group, allowing us to identify key hotspots and areas where we can
Slide 34: Mission Group Development
MISSION GROUP DEVELOPMENT MAINTAINING OUR GROWTH TRAJECTORY ALREADY IN DEVELOPMENT • eCommerce via Mission Made • Enhanced SEO capability via Mission Made • Shaping an evolved Healthcare proposition • Developing a central ‘Data that Counts’ proposition IN SCOPE (2022) • Assessing and enhancing the G
Slide 35: In Summary
IN SUMMARY PLAN TO USE NEW ADDITIONS FINANCIAL 2022 HAS 18% REVENUE OF SOUL AND STRENGTH FOR STARTED WELL GROWTH IN 2021 LIVITY BEDDING IN FURTHER AND WE ARE WITH EFFECTIVE WELL AND GROWTH AND ANTICIPATING CONVERSION INTO ONGOING AGENCY PATHFINDR ANOTHER YEAR OF PROFIT AND CASH PORTFOLIO RESTRICTION