Public Policy Holding Co., Inc. · LSE:PPHC
Public Policy — Investor Day (January 2025)
67 slides from Public Policy's investor day presentation, Jan 30, 2025
Slide 1: PPHC Capital Markets Event
PPHC Capital Markets Event 30 January 2025
Slide 2: Disclaimer
2 Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTIO N, IN WH OLE OR IN PART, DIRECTLY OR INDIRECTLY , TO ANY O THER PERSON OR IN O R INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOU
Slide 3: Our mission
3 Our mission To be the preeminent strategic communications and government relations provider by uniting a diverse group of leading specialists around the world for the collective success of our clients, employees, and shareholders.
Slide 4: Agenda
4 Agenda 2.30pm Welcome and Introduction Stewart Hall, CEO and team Firm Profiles and Services 2.45pm with Mat Lapinski, Cassandra Pye and Oliver Thomas Gensemer, CSO Foster 3.15pm 2024 Trading Update Roel Smits, CFO Thomas Gensemer, CSO Click to edit 3.30pm GrowthMaster text Agenda, Organic & M&Ast
Slide 5: Presentation Team
5 Presentation Team Stewart Hall Roel Smits Thomas Gensemer Chief Executive Officer Chief Financial Officer Chief Strategy Officer
Slide 6: Key messages for you to take away from today
6 Key messages for you to take away from today Our firms operate in the high-end, high-margin corporate advisory space with offerings of Strategic Communications, Lobbying and Public Affairs. PPHC uniquely combines the superior profitability and retention of a trusted, client-focused advisory with t
Slide 7: PPHC Quick Overview
7 PPHC Quick Overview PPHC operates a complementary portfolio of strategic Key capabilities advisory firms with bi-partisan expertise and growing geographic reach. HQ in Washington DC, with US offices1 in CA, NYC, Boston, Nashville and Dallas/Fort Worth. International presence in Federal Public Affa
Slide 8: Our operating companies have highly-complementary specialisations and reach
8 Our operating companies have highly-complementary specialisations and reach Strategic Communications & Public Affairs Federal & International Lobbying State Lobbying & Compliance
Slide 9: We have an expanding global footprint
9 We have an expanding global footprint to be where our clients need us most (1) Compl eti on of TrailRunner International expected by management by 1 April 2025: NYC, Nashvil le, Dall /Fort W orth, Abu Dhabi , Dubai, and Shanghai offices added
Slide 10: PPHC Platform Growth to Date (2014-2024)
10 PPHC Platform Growth to Date (2014-2024) A decade of strategic M&A. We've found highly accretive firms, who deliver complementary, premium offerings to a broad portfolio of retained clients. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2014 2018 2019 2020 2021 2022 2023 2024 2025 F
Slide 11: Why public? Why on AIM?
11 Why public? Why on AIM? Why are we a listed company? Why In London? Implement an M&A currency to seize strategic acquisition The UK and AIM has a strong track record of supporting opportunities and maintain a competitive edge high-growth, mid-sized professional services businesses Have structural
Slide 12: 10 years after our founding, our story is just getting started
12 10 years after our founding, our story is just getting started Our foundation Current Now to medium-term (2014 - 2021) (post-IPO to today) (2030+) Focused on Federal (US) Expansion into US States and Further geographic expansion international government relations (“lobbying”) Deepening research,
Slide 13: We focus on our clients' toughest challenges and most important audiences
13 We focus on our clients’ toughest challenges and most important audiences Stakeholders are increasingly interconnected across medium and geographies Strategic Examples of PPHC Services Political Politicians & Targeted Investors & Other Elite Objectives Regulators Allies & Journalists Staff Voters
Slide 14: Retained relationships with blue chip client base
14 Retained relationships with blue chip client base; including half of Fortune 100 Heavily retained, highly renewed contracts with high levels of access to C-suite Federal, State & International Lobbying Strategic Communications & Public Affairs
Slide 15: Industry overview
15 Industry overview Thematic end-market tailwinds… PPHC has an attractive and defensible position in the ~$20bn+ US federal & state US public affairs and US federal and state lobbying markets are expected to grow at ~4.5% lobbying and public affairs markets, and is actively pursuing the internation
Slide 16: PPHC outranks all other lobbying firms
PPHC outranks all other lobbying firms; competes with leading communications firms 16 Government Relations & Policy Advocacy Strategic Communications & Public Lobbying Firm 2024 Revenue (in $m) PPHC agencies combined (pro forma) 69.8 Affairs Brownstei n Hy att Farber Schrek 67.8 Akin Gump Strauss Ha
Slide 17: Unique firm cultures with close ties and increased collaboration
17 Unique firm cultures with close ties and increased collaboration Employee metrics 360+ Employees 75%+ of PPHC shares owned by employees 85+ Employee shareholders 165+ Employees in Equity-based Long-Term Incentive Program
Slide 18: Firm Profiles and Services
18 Firm Profiles and Services
Slide 19: Panelists
19 Panelists Click to edit Master text styles Mat Lapinski Cassandra Pye Oliver Foster Steward Hall CEO, Crossroads Strategies President, Lucas Public Affairs CEO, Pagefield Chief Executive Officer
Slide 20: Crossroads Strategies – Washington, DC
20 Crossroads Strategies – Washington, DC CRS at a glance 25 Federal Advocacy Employees Strategic Planning: Crafting tailored advocacy campaigns aligned with each client’s unique assets, needs, and goals Relationship Building: Leveraging deep connections with key officials and staff to advance c
Slide 21: Lucas Public Affairs (LPA) – Sacramento, CA
21 Lucas Public Affairs (LPA) – Sacramento, CA LPA at a glance Political Public Affairs 20+ Strategic Communications and Outreach: Develops and executes high-level reputation, issues management, and Practitioners digital strategic communications campaigns. Leads with strategy to move the needle on
Slide 22: Pagefield – London, UK
22 Pagefield – London, UK Pagefield at a glance Public Affairs & ‘Outcome-specific’ Campaigns 36 Employees Strategic Stakeholder Engagement: Develops strategies and campaigns to engage with key political stakeholders, helping clients navigate Westminster and beyond Delivering outcome-specific ca
Slide 23: Advancing industrial decarbonization
Advancing industrial decarbonization: 23 CRS helps secure up to $25m for domestic manufacturing client through the IRA Challenge A large domestic manufacturer had not been active in pursuing federal grants or engaging with federal opportunities to advance its sustainability goals, and they needed fu
Slide 24: Elevating corporate water stewardship in California
24 Elevating corporate water stewardship in California Challenge Recognizing growing enthusiasm for greater coordination among California’s largest corporations, Lucas Public Affairs (LPA), in collaboration with the Pacific Institute, the World Environment Center and Ecolab, launched the California
Slide 25: Ensuring representation of the UK's professional freeholders
25 Ensuring representation of the UK’s professional freeholders Challenge Amidst a UK-wide building safety crisis and an increased focus on leasehold reform in Whitehall, three of the UK’s largest professional freeholders needed to get their voices hear by the UK Government. Solution Results After i
Slide 26: 2024 Trading Update
26 2024 to Click Trading edit Update Master Texts Style
Slide 27: Continuing a strong track record of revenue growth
Continuing a strong track record of revenue growth 27 Based on 2024 Trading Update 9.4% 12.1% 25.3% 25.3% 8.3% 24.4% 6.7% 2.0% 2.7% 2024 revenue of $150m 150 11 In 2024, again significant impact 135 24 4 from M&A, and organic growth slightly higher than last year at 109 3 99 3 2 2.7% 7 77 19 17 135
Slide 28: Breakdown of our business by segments
28 Breakdown of our business by segments Based on 2024 Trading Update 2024 Revenue breakdown by Segment (total = $150m) • High growth potential Diversified Services (DS) • Very profitable Lobbying / Advocacy (GR) • Subscription, 69% 7% high repeat • Consistently profitable • Highly retained Public A
Slide 29: Zooming in on organic revenue growth 2023 and 2024
Zooming in on organic revenue growth 2023 and 2024 29 Based on 2024 Trading Update Both years impacted by lull in PA – which now seems behind us Organic growth in 2023 and 2024 Growth vs PY has been below our traditional levels of 5-10% 23% 4% 4% 2.0% 2.7% …clearly impacted by decline in Public Affa
Slide 30: Client Fact 1: Number of clients keeps growing
30 Client Fact 1: Number of clients keeps growing Based on 2024 Trading Update Our number of Clients 1226 1129 806 684 616 448 231 History through 2023 re-stated based on client-consolidation analysis
Slide 31: Client Fact 2: Client dependency declining
31 Client Fact 2: Client dependency declining Based on 2024 Trading Update Client revenues as % of total revenues 26% 18% 8.7% 7% 5.8% 1.5% History through 2023 re-stated based on client-consolidation analysis
Slide 32: Client Fact 3: # of clients spending >$100k increases fast
32 Client Fact 3: # of clients spending >$100k increases fast Based on 2024 Trading Update Clients spending more than $100k per year 503 437 503 clients: 353 328 41 % of # clients 278 83% of $ revenues 190 134 History through 2023 re-stated based on client-consolidation analysis
Slide 33: Client Fact 4: Strong exposure to global brands and key issues
33 Based on 2024 Trading Update Client Fact 4: Strong exposure to global brands and key issues Pharma 15.0 Healthcare 14.2 Technology 13.7 Energy 13.3 Finance 13.1 Business Services 6.9 Other Issue Advocacy 8.4 Transportation 8.0 2024 Revenues by Sector Click to edit Master text styles (total = $150
Slide 34: Client Fact 5: Retention annually 80%-85%
Based on 2024 Trading Update 34 Client Fact 5: Retention annually 80%-85% Mix of GR and PA 160.0 56.6 78.3 99.5 108.9 135.0 149.7 Client cohort 140.0 2024 120.0 2023 100.0 2022 80.0 2021 60.0 2020 40.0 2019 20.0 2018 0.0 2018 2019 2020 2021 2022 2023 2024 Average YOY retention 81% 95% 84% 83% 80%
Slide 35: Profit: growing and positive
Based on 2024 Trading Update Profit: growing and positive 35 Very profitable – and high cash conversion EBITDA % 28% 24% 28% 32% 29% 26% 24% 26% Items reducing margin in recent Underlying years EBITDA ($m) 39.1 36.1 public company costs and 35.1 32 investments in 31.2 platform/holdco. In 2024 signif
Slide 36: Why we believe 2025 looks promising
36 Why we believe 2025 looks promising… 1 2 3 4 Strong topline Focus on driving growth Reduction in one- Recent acquisitions momentum from collaboration off costs contributing
Slide 37: Growth Agenda
37 Growth Agenda
Slide 38: Specific growth initiatives
38 Specific growth initiatives Key Client Programs Cross-Selling of Employee Summits AI-Enhanced Delivery and Strategic Pricing & specialisations and and ongoing launch of shared research Sourcing Initiatives geography engagement efforts tools
Slide 39: Embedded growth opportunities
39 Embedded growth opportunities Leverage PPHC Platform Deeper Across Client Portfolio Strong Secular Tailwinds Click to edit Unique proposition of our integrated policy, political and communications expertise Master Texts Style Monetizing the distinct capabilities of multiple brands across the port
Slide 40: Growth strategies are based on client needs and PPHC's increasing capabilities
Growth strategies are based on client needs and PPHC’s increasing capabilities 40 Click to edit Compounding Value of PPHC Value-Added Services Driving High Margins Strong Free Cash Flow Conversion Successful Integration of Accretive M&A Disciplined Capital Allocation Philosophy Master Texts Style Gr
Slide 41: Our M&A track record since IPO
41 Our M&A track record since IPO October 2022 March 2023 May 2024 June 2024 April 2025 Gov’t Relations & Public Gov’t Relations and associated Public Affairs and Corporate Corporate Affairs in California services in all states Strategic Communications Communications Communications in in London, UK
Slide 42: Active M&A pipeline, expanding geographies and capabilities
42 Active M&A pipeline, expanding geographies and capabilities Ample scope for growth through M&A Geography Issue Specialisation Multiple M&A opportunities under consideration/review, which would expand geographies and capabilities Typically, earnout transactions, whereby future payments are con
Slide 43: The Economics of our Acquisitions
43 The Economics of our Acquisitions Upfront payment in combination with Transaction structure drives long term broad ownership multiple earnout payments over longer Each payment mix of cash and shares period. Earnout payments shared with ‘next generation’ management Earnout payments driven by profi
Slide 44: Capital allocation & medium-term plan
44 Capital Click to allocation edit & Master Texts Style medium-term plan
Slide 45: Our ambition for the medium-term
45 Our ambition for the medium-term Medium-term Vital Ingredients (2030+) Company Continue track record of stability through: low political dependency low client dependency high employee ownership high % retained work Further geographic expansion Ownership and stock Deepening research, compliance an
Slide 46: Our Ambition
46 Our Ambition $500M Potential Pathways Organic growth existing companies 5-10% (amplified by collaboration) Acquisition growth: Annually acquire revenue $35-50m at margins 20- 30% Purchase multiple 5-8x PAT across earnout Organic growth acquired companies 5-10% Maintain EBITDA margin around 25% $1
Slide 47: Why do we want to reduce dividend?
47 Why do we want to reduce dividend? We aim to reduce dividend to retain more of our strong 2022 2023 2024 2025 cash flow, enabling us to continue doing accretive M&A Prelim/ and incl XO beyond and drive long-term growth Underlying Net Income 23 27 27 This is the outcome of a disciplined Capital Al
Slide 48: TrailRunner International
48 TrailRunner Click to edit International Master Texts Style
Slide 49: Recent Acquisition
49 Recent Acquisition Click to edit Master Texts Style Jim Wilkinson
Slide 50: Presenter
50 Presenter Click to edit Master Texts Style Jim Wilkinson Executive Chairman, TrailRunner International
Slide 51: TrailRunner International: Enhancing PPHC's Growth Platform
TrailRunner International Enhancing PPHC’s Growth Platform January 30, 2025 CONFIDENTIAL 51
Slide 52: Megatrends
Megatrends • Collision of factors • Large firm business model • Agency of Record • Branded House vs. House of Brands • Youth of industry • The big squeeze • The decline of RFPs • U.S. Heartland • Human nature CONFIDENTIAL
Slide 53: About Us
About Us • Founded in 2016 • 84 team members across eight global offices • Deep management team of today and the future Kelly Wallace Sarah Grubbs Pat Shortridge Jim Wilkinson Jim Hughes Chief Media/Brand Officer Chief Growth Officer Head of Corporate & Executive Chairman Chief Executive Officer Pub
Slide 54: Our Expertise
Our Expertise We provide solutions for our clients in the following areas: • Financial Communications • IPOs • Crisis Communications • M&A • Shareholder Activism • Litigation Communications • Restructuring • Corporate Communications • International Transactions and Other Regulatory Matters • Corpora
Slide 55: TrailRunner Sports
TrailRunner Sports A joint venture between Legends and TrailRunner International CONFIDENTIAL
Slide 56: Our Sports Expertise
Our Sports Expertise CONFIDENTIAL
Slide 57: TrailRunner International Footprint
TrailRunner International Footprint CONFIDENTIAL
Slide 58: Our Culture
Our Culture • Win the Day • Disciplined • Focus on the fundamentals • Dedication to client service • Long-term team growth and development • Diversity CONFIDENTIAL
Slide 59: Thank You!
Eg [railRunner International THANK You! CONFIDENTIAL
Slide 60: Conclusion
60 Conclusion Click to edit Master Texts Style
Slide 61: High government spending + risky political climate = strong, global demand
High government spending + risky political climate = strong, global demand 61 Tailwinds driving growth Strategic communications with financial, healthcare and tech specialisation(s) among the fastest growing sectors, each with unique demands for policy and regulatory expertise PR holding companies a
Slide 62: Key messages for you to take away from today
62 Key messages for you to take away from today Our firms operate in the high-end, high-margin corporate advisory space with offerings of Strategic Communications, Lobbying and Public Affairs. PPHC uniquely combines the superior profitability and retention of a trusted, client-focused advisory with
Slide 63: Thank you for attending today
63 Click to you Thank edit for attending today Master Texts Style
Slide 64: Appendix
64 Click to edit Appendix Master Texts Style
Slide 65: How does the PPHC platform add value?
65 How does the PPHC platform add value? PPHC maintains separately branded and managed PPHC’s platform for operation operating companies Click to edit PPHC offers conflict mitigation, access to growth capital, operational efficiencies and cross referral opportunities Integrated Business Services PPH
Slide 66: Our short-term goal is to establish a Group presence in key global markets
Our short-term goal is to establish a Group presence in key global markets to 66 unlock referral nexus into global corporate budgets While still less regulated than in the US, UK & EU governments have increased lobbying transparency requirements over the last decade UK The Transparency of Lobbying,
Slide 67: PPHC
PPHC:
Public Policy Holding Company — Investor Day (January 2025) on 6ix