Stagwell Inc. · NASDAQ:STGW
Stagwell — MDC Partners — Investor Day (December 2014)
14 slides from Stagwell's investor day presentation, Dec 4, 2014
Slide 1: MDC Partners 2014 Investor Day: Financial Outlook
J celatins ~— KDS+ hunter publi WDC Partners Inc. 2014 INVESTOR DAY ='*°™ THURSDAY, DECEMBER 4, 2014 NEW YORK CITY mon Financial Outlook ‘arketin MDc%Partners
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation, including our “2014 Financial Outlook”, contains forward - looking statements. The Company’s representatives ma y also make forward - looking statements orally from time to time. Statements in this presentation that are not historical
Slide 3: 2014 Progress Report – On Track
2014 Progress Report – On Track 1. Industry - leading organic revenue growth 2. Strong EBITDA growth and operating leverage 3. Solid cash generation
Slide 4: Robust New Business Trends and Pipeline
Robust New Business Trends and Pipeline * Includes wins in the public domain only Recent New Clients* Net New Business Trend Strong TTM net new business of $132 million
Slide 5: Refocusing the MDC Partners Portfolio
Refocusing the MDC Partners Portfolio Pursuing a partner for our customer engagement business, Accent
Slide 6: Re-setting 2014 Financial Guidance
Re - setting 2014 Financial Guidance Revenue Implied Year over Year Growth Adjusted EBITDA Implied Margin Range Adjusted EBITDA Available for General Capital Purposes Prior Guidance* October 29, 2014 $1.245 - $1.270 billion +8.4% to +10.5% $ 184 - $188 million 14.5% to 15.1% $108 - $112 million Acce
Slide 7: We Grow Faster
We Grow Faster *peers include WPP, Omnicom, Publicis , Interpublic Group, Havas ^September 2014 year - to - date Organic Growth Average (2007 through 2014 YTD) MDC (as reported) 9.4% MDC (ex Accent) 10.9% Peers* 2.7% MDC Partners vs. Peers* Calendar Year Organic Revenue Growth
Slide 8: Improved Margin Profile - Re-setting the Target
Improved Margin Profile - Re - setting the Target Revised 2014 Guidance 14.7 - 15.3% New 3 - 5 Year Target 17 - 19% Old 2016 Target 15 - 17%
Slide 9: Improved Capital Intensity
Improved Capital Intensity Capex % of Sales (2011 - 13 Average) 3.5% 1.8% Accent Rest of MDC
Slide 10: Key Growth Opportunities
Key Growth Opportunities 1. Market Share: 2 - 3% in North America = room to run 2. Global: 7% of MDC revs outside of North America versus Peers at 56% (55 - 60% of global ad spend) 3. Media: ~10% of MDC revs versus Peers at 20 - 25%
Slide 11: Acquisition Update
Acquisition Update Recent Notable Acquisitions M&A Strategy Add 3 - 5% of revenue annually via acquisitions
Slide 12: Lower Cost of Capital = Growth Opportunities
Lower Cost of Capital = Growth Opportunities Capital Cost - 56% Stock Price +10x *Cost of capital reflects pricing on senior notes offerings ^Stock price as of November 28, 2014
Slide 13: MDC Financial Framework
MDC Financial Framework Double - Digit Total Revenue Growth 50 - 100 bps Annual Margin Expansion 25 - 30% Compounded Adjusted EBITDA Available for General Capital Purposes Growth Mid - Teens Adjusted EBITDA Growth 5 - 7% Year - over - Year Organic Revenue Growth 50 - 100 bps Annual Organic Margin Ex
Slide 14: Definition of Non-GAAP Measures
Definition of Non - GAAP Measures Adjusted EBITDA: Adjusted EBITDA is a non - GAAP measure, that represents operating profit plus depreciation and amortization, stock - based compensation, acquisition deal costs, deferred acquisition consideration adjustments, and profit distributions from affiliate