Rws Holdings Plc · LSE:RWS
Rws — HY25 Earnings Presentation
56 slides from Rws's earnings presentation, Jun 17, 2025
Slide 1: HY25 Results and Strategy Update
HY25 Results and Strategy Update Investor and analyst briefing 17 JUNE 2025
Slide 2: Ben Faes, CEO and Candida Davies, CFO
Ben Faes Candida Davies Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
Agenda Introduction 01 HY25 financial review 02 Current trading & FY25 outlook 03 Growth strategy Appendix 04 Balance sheet, capital allocation, reporting changes
Slide 4: Agenda
Agenda Introduction 01 HY25 financial review 02 Current trading & FY25 outlook 03 Growth strategy Appendix 04 Balance sheet, capital allocation, reporting changes
Slide 5: Further organic growth momentum; lower adjusted profit driven by non-trading impacts and gross margin
Further organic growth momentum; lower adjusted profit driven by non-trading impacts and gross margin contraction Revenue Gross Margin Adjusted EBITDA² & margin Adjusted PBT³ £344.3m 43.3% £38.1m -41% £18.0m -61% + 1.4% OCC1 - 240 bps 11% - 700bps (- 1.7% reported) HY24: £350.3m HY24: 45.7% HY24: £6
Slide 6: Income statement
Income statement 6 months ended 6 months ended H1'25 Actuals Organic constant currency1 growth +1.4% 31-Mar-25 31-Mar-24 vs. H1'24 • Reported revenue down -1.7% (£m) (£m) (£m) Revenue 344 350 -6 Cost of sales -195 -190 -5 Gross margin lower at 43.3% Gross profit 149 160 -11 • Weaker performance in R
Slide 7: H1 FY24 to H1 FY25 adjusted PBT bridge
H1 FY24 to H1 FY25 adjusted PBT bridge trading -£6m non-trading -£22m FX impact of strengthening of the £ vs. $/€ c. 67% of Revenue in USD vs. c. 25% of costs 50% of net surplus cash flows hedged in Oct-24 @ 1.31 7 HY25 Results & Strategy Update
Slide 8: Divisional performance
Divisional performance Revenue OCC1 £m Language • Growing AI services and APAC Services • Continued pricing pressure HY25 HY24 % Regulated • Weaker performance in Linguistic Language Services 158.4 153.0 4% Industries Validation and Finance & Legal Regulated Industries 65.6 70.7 -7% Language & Conte
Slide 9: Cash generated from operations £46m
Cash generated from operations £46m Cash conversion1 171% H1'25 PBT -13 Interest, D&A 42 SBP/Other 3 Working Capital 14 Cash Gen from Ops 46 Cash conversion² Adjusted EBITDA £38m Operational FCF £35m 1 Cash conversion is defined as free cash flow before exceptional cash flows, divided by adjusted ne
Slide 10: FY25 – current trading and outlook
FY25 – current trading and outlook HY H2 FY25 FY25 Sustained modest OCC growth in H2’25 Low Revenue • Client appetite for AI solutions YoY OCC% 1.4% • SaaS licence growth single digit Ongoing unpredictable economic & political environment Continued TrainAI growth Regulated Industries remains a drag
Slide 11: Agenda
Agenda Introduction 01 HY25 financial review 02 Current trading & FY25 outlook 03 Growth strategy Appendix 04 Balance sheet, capital allocation, reporting changes
Slide 12: RWS is an attractive business, with great foundations
01 02 03 A timeless A leader, partner A transformation purpose to the largest and growth RWS is an brands mission attractive Unlock global Trusted by An industry in business, understanding >80% world’s transformation with great top brands foundations. Between humans Work with the best¹: A vision to
Slide 13: Delivering critical value to some of the largest companies in the world
Delivering critical value to some of the largest companies in the world Training and refining Supporting clinical trials Managing the IP Helping to create Enabling the publication LLMs for West Coast for critical drug portfolio of some of the borderless insights for of laws in 1/3 of US technology c
Slide 14: How we need to change
How we need to change Accelerating growth Technology first & improving margin AI-first language platforms Higher quality of earnings from core – to our efficient delivery increased recurring revenues & ability to differentiate More sales intensity Greater ownership Accelerating pace Leader accountab
Slide 15: We are already making progress
We are already making progress Early progress • Due diligence: • Revenue growth • Key hires – 1) CPTO & 2) • Rebrand & repositioning: 4,000 employees priority: EVP Strategy & M&A: defined product portfolio in 11 countries; +1.4% OCC¹ in H1 re-organising product around 3 pillars & clients; investors;
Slide 16: RWS is a content solutions company, powered by technology & human expertise
RWS is a content solutions company, powered by technology & human expertise We help our clients maximise the value of their content, ideas and data Power intelligent content Speak human, everywhere Innovate with confidence content, data content ideas 16 HY25 Results & Strategy Update
Slide 17: Established presence, growth potential
Established Growth Segments presence potential with competitive advantage 17 HY25 Results & Strategy Update
Slide 18: Smart, scalable content
Smart, scalable content 18 HY25 Results & Strategy Update
Slide 19: Generate today
today Revenue share Pricing basis Products & Services c.65% Licence & professional fees c.35% Hourly rate Generate Transform Protect Clients We work with many West Coast technology companies, including two of the largest LLM providers 19 HY25 Results & Strategy Update
Slide 20: AI triggers unprecedented scale, speed, and complexity of content
AI triggers unprecedented scale, speed, and complexity of content As much content created in the last 18 months as in the previous 30 years 20 HY25 Results & Strategy Update
Slide 21: Architecting intelligent content
Architecting intelligent content Strategic AI Human-in-the-loop Structured content enablement assurance for control Multilingual data annotation Expertise for "Generate & Verify" Reinforcement learning from model accuracy principles human feedback (RLHF) Bias testing 21 HY25 Results & Strategy Updat
Slide 22: Train AI services case study: client enhances GenAI chatbot with 5,000 TrainAI experts
Train AI services case study: client enhances GenAI chatbot with 5,000 TrainAI experts Challenges Solution Results Global tech leader wanted o Fast resourcing of data o Rapid scaling to 5,000 AI data competitive advantage by specialists, writers and specialists, writers and improving their generativ
Slide 23: Market view
Market view Generate addressable markets, 2025-2028 (total size £6.3Bn in 2025) Component content AI data services market management market £Bn £Bn +20-22% 8.1 +9-10% 2.2 4.6 1.7 2025 2028 2025 2028 The component content management market (CCMS) is The AI data services market is growing >20% CAGR wi
Slide 24: Growth vision
Growth vision Generate addressable markets, 2025-2028 (total size £6.3Bn in 2025) Component content management AI data services market market +20% CAGR +9% CAGR 8.1 • Tridion, Fonto, Propylon, Contenta - unique • TrainAI driving already explosive growth suite of capabilities in this growing market •
Slide 25: Real-people adaptation
Real-people adaptation 25 HY25 Results & Strategy Update
Slide 26: Transform today
today Revenue share Pricing basis Products & Services Licence and professional fees (technology products) Price/word Price/hour Localisation services (services) (services) to all verticals Including specialised Generate Transform Protect services, e.g. Linguistic Validation Clients At scale, securel
Slide 27: Bridging global divides – to unlock global understanding
Bridging global divides – to unlock global understanding 27 HY25 Results & Strategy Update
Slide 28: Trados: software of choice for the language industry
Trados: software of choice for the language industry Trados Studio (Individual Deeply integrated language specialists) • >50 connectors • Quarterly unique users – 300k • Available on AWS Marketplace • Total word throughput – 413bn • Scalable architecture (FY2024) Trados Cloud Enterprise solution • 2
Slide 29: A leading AI dubbing solution
A leading AI dubbing solution Full-service dubbing AI voices perfected by humans An end-to-end AI dubbing service, vetted Patented AI technology and 1000s of by top companies and distributed on the licensed AI, voices, project managed by most popular streaming platforms. dubbing experts and quality
Slide 30: Go-to-market: product options for clients to manage their content needs
Go-to-market: product options for clients to manage their content needs SaaS Managed Services Professional Services Integrating into client Enterprises outsource Language specialists for specific tech stack management of content workflow needs – e.g. linguistic validation, post edit, UX testing Idea
Slide 31: Global by design
Global by design 01 Native platform integration: seamless across enterprise systems AI-powered localisation: Trados + 02 Language Weaver capabilities 03 Multimedia capabilities: Papercup acquisition (dubbing, subtitling) 31 HY25 Results & Strategy Update
Slide 32: RWS helps Canva scale with culturally relevant localisation in 80+ languages
RWS helps Canva scale with culturally relevant localisation in 80+ languages Challenges Testimonial Results Online design & publishing “Working with RWS has been High-volume, scalable tool, with a mission to empower incredible. No matter what, they localisation in over 80 languages everyone to desig
Slide 33: Market view
Market view Language industry market, 2025-2028 (total size of £23.7Bn in 2025) Language services (LSIs) Technology platforms (LTPs) £Bn £Bn -1-2% +14-16% 5.7 20 19.1 3.7 2025 2028 2025 2028 Language services including core translation, editing, Language technology (including Machine Translation / L
Slide 34: Growth vision
Growth vision Language industry market, 2025-2028 (total size of £23.7Bn in 2025) Linguistic Services Language Technology Platforms flat CAGR +12% CAGR • RWS reorganisation will bring additional • Trados and Language Weaver 8.1as market efficiency in delivery model leaders • Investment in process au
Slide 35: Secure & compliant
Secure & compliant 35 HY25 Results & Strategy Update
Slide 36: Protect today
today Revenue share Pricing basis Products & Services Service fee (all other services) End-to-end IP lifecycle management: Price/word o Search (translation) o Translation o Filing Generate Transform Protect o Renewals o Recordals Clients We work with 17 of the Top 20 global patent filers 36 HY25 Res
Slide 37: Explosion of IP
Explosion of IP Safeguarding global innovation US$2.8tn 18.6m Global R&D Spend (2023) Patents in operation worldwide (2023) 3.55m 7.6% Increase in patent applications vs. prior Patent applications (2023) year (2023) 37 HY25 Results & Strategy Update Source: Source:WIPO WIPO
Slide 38: The digital IP platform of choice
The digital IP platform of choice Scale core IP Connect the IP digital portfolio offerings IP lifecycle marketplace o Grow faster than the market, via new client acquisition and growing share of wallet, from our differentiated, across the lifecycle, proposition o Generate higher quality of earnings
Slide 39: IP renewals are 10-15% more efficient with RWS
IP renewals are 10-15% more efficient with RWS Challenges Testimonial Results Alibaba, a leading global “For Chinese enterprises • Monthly IP renewals technology company specializing expanding globally, RWS’s global management tasks 10-15% in e-commerce & other internet resources, combined with more
Slide 40: Market view
Market view Protect addressable market, CAGRs Key ‘25-28 drivers 2025-2028 Strong growth in renewals £Bn +4-5% Renewals +5-7% driven by an increase in 2.1 (Patents) patents in force 1.9 Stable growth; will see 39% spend shifts from basic Translations +1-3% Machine Translation 38% workflows to higher
Slide 41: Growth vision
Growth vision Protect addressable market 4% CAGR • Strong reputation and client base • Very high cross selling opportunity in renewals and recordals • Higher margin profile 39% • Fresh new sales team focusing on gaining market share 38% • Very high client retention 16% 17% 30% 29% 41 HY25 Results &
Slide 42: RWS values: Partner, Pioneer, Progress, Deliver
RWS values Partner Pioneer Progress Deliver We put clients first. We innovate We aim high. Learn We own the Collaborate fearlessly. Lead with fast. Grow through outcome. Build openly. Win vision and courage. action. Trust. Move with together. intent. 42 HY25 Results & Strategy Update
Slide 43: RWS's new strategy will…
RWS’s new strategy will… Deepen our strategic relationships with large enterprises and see us 01 Agility, accountability and speed become the critical content solution 02 Faster AI deployments not compromising enterprise grade provider to a larger requirements set of clients 03 Clear business models
Slide 44: Implementing the strategy – the next 6 months
Implementing the strategy – the next 6 months Early progress Detailed planning FY25 Results o Revenue growth imperative o Modelling & verification o Medium-term of 3-year plan guidance o Key hires – CPTO & EVP Strategy & M&A o Operating model design o New KPIs o Rebrand & repositioning o Preparing f
Slide 45: Three agile businesses delivering strategic content solutions
Three agile businesses delivering strategic content solutions 45 HY25 Results & Strategy Update
Slide 46: Three agile businesses delivering strategic content solutions
Three agile Focused on businesses growth and delivering quality of strategic earnings content solutions 46 HY25 Results & Strategy Update
Slide 47: Three agile businesses delivering strategic content solutions
Three agile Focused on Unified by businesses growth and state-of-the- delivering quality of art technology strategic earnings content solutions 47 HY25 Results & Strategy Update
Slide 48: Three agile businesses delivering strategic content solutions
Three agile Focused on Unified by And a strong, businesses growth and state-of-the- thriving delivering quality of art technology company strategic earnings culture content solutions 48 HY25 Results & Strategy Update
Slide 49: Thank you.
Thank you.
Slide 50: Q&A
Q&A
Slide 51: Agenda
Agenda Introduction 01 HY25 financial review 02 Current trading & FY25 outlook 03 Growth strategy Appendix 04 Balance sheet, capital allocation, reporting changes
Slide 52: Balance sheet
Balance sheet As at 31 Mar As at 30 Sep 2025 2024 (£m) (£m) Non-current assets 919 928 Non-current assets Cash and net debt Trade and other receivables 207 211 Other current assets 6 6 Goodwill (£583m) increased $220m RCF expires in Cash and cash equivalents 70 62 by £12m due to FX impact August 202
Slide 53: Investments governed by capital allocation policy
Investments governed by capital allocation policy Continued strong cash generation and disciplined capital allocation Invest to accelerate Appropriate capex Dividend Acquire for organic growth & and prudent further growth maintain BAU 01 leverage 02 03 04 Invest in go-to-market Lower capex level Pro
Slide 54: Reporting segments effective 1 October 2025
Reporting segments effective 1 October 2025 Revised reporting segments Current reporting segments Language Services Regulated Industries Localisation solutions Life sciences for multiple verticals Financial services Includes AI data services (TrainAI), eLearning, HAI & multimedia Legal services serv
Slide 55: About us
About us RWS is a content solutions company, powered by technology and human expertise. We grow the value of ideas, data and content by making sure organizations are understood. Everywhere. Our proprietary technology, 45+ AI patents and human experts help organizations bring ideas to market faster,
Slide 56: Hello, world.
Hello, world.