Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Goldman Sachs Communacopia Conference 2019
15 slides from Stagwell's conference presentation, Sep 19, 2019
Slide 1: Goldman Sachs Communacopia Conference
The picture can't be displayed. Goldman Sachs Communacopia Conference SEPTEMBER 19, 2019
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward - looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward - looking statements. Such risk factors include, but are not limited to, the following: ▪ risks associated with sev
Slide 3: How is the Advertising World Progressing?
3 GLOBAL AD SPENDING 2019 (Total $639B) GLOBAL AD SPENDING 2000 (Total $329B) Source: eMarketer 8% 5% 31% 6% 1% 7% 44% Newspapers Magazines Television Radio Cinema Outdoor Internet 33% 15% 35% 9% 6% 2% CMOs have been transformed from brand builders to performance marketers How is the Advertising Wor
Slide 4: MDC is in a strong position to meet the needs of today's CMOs
The picture can't be displayed. MDC is in a strong position to meet the needs of today’s CMOs + benefit from this evolution Unparalleled creativity that fuels the world’s most iconic global brands Disrupting with the disruptors
Slide 5: The new world plan
the new world plan
Slide 6: Transform MDC from holder of individual companies to a holding company
Transform MDC from holder of individual companies to a holding company From creative company to data & creativity From 35 individual units to multi - agency networks 1 2 3 4 From individual cost centers to centrally managed G&A Position MDC to thrive in this new world PURPOSE
Slide 7: MDC and Stagwell: unified go-to-market
STAGWELL MDC BOTH LA SAN DIEGO SF PORTLAND MINNEAPOLIS CHICAGO DETROIT ALBANY NYC DC COLUMBIA ATLANTA NASHVILLE SCOTTSDALE LONDON HAMBURG PARIS MOSCOW DUBAI JERUSALEM TOKYO SEOUL SHANGHAI HONG KONG SINGAPORE SAO PAULO, BR SYDNEY MUMBAI NEW DELHI BANGALORE BANGKOK BEIJING CHENGDU BERLIN AMSTERDAM COP
Slide 8: Data without creativity is as useless as creativity without data
Data without creativity is as useless as Creativity without data DATA CREATIVITY STRATEGY PERFORMANCE A model that is nimble, lean, & focused ▪ Enhanced data and technology expertise ▪ Integrated Media offering ▪ Unique IP ▪ Campaign Media Management From creative agencies to data + creativity power
Slide 9: Providing suite of modern services
PROVIDING SUITE OF MODERN SERVICES Data Analytics Research Production Strategy Creative MEDIA AS COMMON SERVICE SIMPLIFYING Reporting Units Networks 25 7 - 10 Multi - agency networks = more holistic solutions + more effective marketing 4 1 2 3 4
Slide 10: Alliances simplify structure & operations
Alliances simplify structure & operations *Targeting $100M in free cash flow including M&A payments from Q2 2019 – Q4 2020 4 1 2 3 4 Leveraging scale for greater efficiency Improved compensation to revenue ratio Reduction of overhead at agencies that operate above the mean Reduction in corporate ove
Slide 11: Progress to date
Progress to date x Established strategy + agency buy - in x Alliance execution underway x OneMDC pitches in progress x $43M of net new business in Q2 19 = strongest in 5 years x Savings actions commenced x DAC continues to decline Net New Business is non - GAAP financial measure defined at the end o
Slide 12: Transformational opportunity
The picture can't be displayed. ▪ Long - term EBITDA margin target: 17 – 19% ▪ Significantly lower M&A obligations, down from $500M (2015) to $140M (Q2 19) ▪ Targeting $100M free cash flow by end 2020 ▪ Reducing leverage, targeting approximately ¾ turn annually ▪ Data + Creativity positions MDC to b
Slide 13: Thank you
thank you MDC Partners Innovation Center | 745 Fifth Avenue, Floor 19 | New York, NY 10151 www.mdc - partners.com
Slide 14: Definition of non-GAAP measures
The picture can't be displayed. Definition of non - GAAP measures ▪ In addition to its reported results, MDC Partners has included in its earnings release and supplemental management presentation certain financial results that the Securities and Exchange Commission defines as "non - GAAP financial m
Slide 15: EBITDA reconciliation table
The picture can't be displayed. EBITDA reconciliation table 1. Covenant EBITDA is a measure that includes pro forma adjustments for acquisitions, one - time charges, and other adjustments, as d efined in the Credit Agreement. Covenant EBITDA is calculated as the aggregate of operating results for th
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