Next 15 Group Plc · LSE:NFG
Next 15 — H1 2012 Earnings Presentation
29 slides from Next 15's earnings presentation, Apr 24, 2012
Slide 1: Interims 2012
Interims 2012 April 24th 2012 1
Slide 2: Agenda
Agenda Highlights Our transition Financials Summary Appendix
Slide 3: 2012 interim highlights
2012 interim highlights • Revenue growth of 11% of which 4% organic* • New business: Foursquare, Yelp, GE, Nokia, Telefonica • Trading conditions: Ø US business performing well; Ø APAC continues to grow; Ø UK performing well outside consumer; and, Ø Mainland Europe remains challenging • Business
Slide 4: Financial headlines
Financial headlines Another set of encouraging results • Revenue up 11% to £45.3m (2011: £40.8m) • EBITDA up 13% to £5.1m (2011: £4.5m) • Adjusted PBT up 15% to £4.3m (2011: £3.7m) • Adjusted diluted EPS up 12% to 4.35p (2011: 3.89p) • Dividend up 10% to 0.565p (2011: 0.515p) • Net debt of £4.4m (20
Slide 5: Key client update: H1 2012
Key client update: H1 2012 Region Losses Wins Pure digital • Pure digital clients here are all new US HP Angie’s List EMI to the group with JC Penney AVG Esurance exception of Salesforce Foursquare, GE Informatica Salesforce and Visa Internet Society Novartis Nicira, Nokia NXP NXP Sony Digital Sales
Slide 6: Growth map H1 2012
Growth map H1 2012 Revenue contribution by division interim s 2012 Organic growth* rate by geography interims 2012 Corporate Pure Digital Comms, & 7% Europe and Africa 0% Research, 10% UK 3% Consumer PR, 17% US and Canada 3% N15 Group 4% Technology PR, 66% APAC 10% 0% 2% 4% 6% 8% 10% 12% • Pure Digi
Slide 7: Agenda
Agenda Highlights Our transition Financials Summary Appendix
Slide 8: Old Next Fifteen: how we used to work
Old Next Fifteen: how we used to work PR Client • Pre digital, our services were defined by 3rd party media • This offered limited measurement and a client/ consumer relationship which was indirect and one-way • PR services were internationally scalable with effort • Success was based on how much 3r
Slide 9: Next now: circle of engagement
Next 15 now: circle of engagement • Media has become a component rather than THE component of client comms Consumers Consumers • Digital enables a direct, two-way, relationship with consumers • Group now offers a range of disciplines, not just traditional PR Comms • Digital services designed as oppo
Slide 10: Where are we in our transition?
Where are we in our transition ? Was Now The future Objective Ø World’s best specialist Ø World’s best digital PR agency marcom group Strategy and § Small acquisitions to § Small acquisitions § Continued organic business broaden sector and within digital comms investment development geogs § Or
Slide 11: Transition case study
Transition case study CMO level contact • Established US consumer with digitally curious client base PR agency, M Booth & Associates Expertise Trusted provider of • 32% organic revenue endorsed by high profile client win advice to consumer brands growth in last two years and campaign • Early collabo
Slide 12: Digital case study: YouTube Pink Floyd
Digital case study 1 YouTube : Pink Floyd. OVERVIEW: This YouTube channel gives fans the opportunity to join this concert every hour, on the hour to watch unreleased live performance of Dark Side of the Moon. The performance, coupled with original Pink Floyd screen films, exclusive footage, and real
Slide 13: Digital case study: Facebook
Digital case study 2 FACEBOOK As part of preparing for its IPO, Facebook wanted to communicate its sustainability initiatives, which we helped bring to life with this INTERACTIVE infographic that allows you to share different sections of their green story through Facebook. 13
Slide 14: Agenda
Agenda Highlights Our transition Financials Summary Appendix
Slide 15: Income statement
Income statement £m H1 FY 2012 H1 FY 2011 Growth/ % Billings 53.8 50.1 8 Revenue 45.3 40.8 11 Adj Operating profit 4.5 3.9 9 Adjusted PBT 4.3 3.7 15 PBT 2.7 2.5 7 Tax (0.8) (0.8) Retained profit 1.9 1.7 7 EBITDA 5.1 4.5 13 Basic EPS 2.82p 2.79p 1 Diluted adj EPS 4.35p 3.89p 12 Dividend 0.565p 0.515p
Slide 16: Cash flow
Cash flow £m HY 2012 HY 2011 • Net inflow from Inflow from op activities 5.3 4.9 operations represents 130% of Working capital (0.4) 0.3 Operating profit. Net inflow from operations 4.9 5.2 • Acquisition Tax (1.5) (1.8) payments Net capex (0.4) (1.0) predominantly in H1, Acquisitions (5.4) (4.2) • D
Slide 17: Balance sheet
Balance sheet £m HY 2012 HY 2011 FY 2011 Intangible assets 40.4 34.2 37.9 Includes present Non-current assets 6.2 5.3 6.4 value of estimated future earn out Current assets 34.4 31.8 34.8 commitments (equity Non-current liabilities (23.1) (9.8) (20.7) and cash) of £12.6m Current liabilities (22.4) (3
Slide 18: Segmental Revenue and Adj Operating Profit
Segmental Revenue and Adj Operating Profit £m Revenue % Operating % Profit Technology PR 30.1 66.5 4.4 65.2 Consumer PR 7.5 16.6 1.1 17.4 Pure Digital & 4.4 9.7 0.4 6.6 Research Corporate 3.2 7.2 0.7 10.8 Communications Head Office (2.2) 45.3 100 4.5 100 18
Slide 19: Geographic Revenue and Adj Operating Profit
Geographic Revenue and Adj Operating Profit £m Revenue % Operating Profit % US and Canada 23.5 51.8 4.7 69.8 UK 9.4 20.8 1.5 22.4 EMEA 5.3 11.7 0.3 4.2 APAC 7.1 15.7 0.2 3.6 Head Office (2.2) 45.3 100 4.5 100 19
Slide 20: Agenda
Agenda Highlights Our transition Financials Summary Appendix
Slide 21: Summary
Summary Interim 2012 in review Outlook • 4% organic revenue growth in a • New business pipeline is mixed global recovery encouraging, especially digital services • Full year profits before restructuring anticipated to be • Currency impact remains a factor, modestly ahead of management mainly £/$ exp
Slide 22: Appendix
APPENDIX
Slide 23: Next Fifteen – investor snapshot
Next Fifteen – investor snapshot • What we do – Provide PR and communications services designed to enable progressive brands to influence buyer behaviour using digital channels. • Our belief – Digital has become the most important channel for influencing buyer behaviour but is still in its relative
Slide 24: Key clients, material relationships
Key clients, material relationships • Next Fifteen’s top 10 clients represent around 28% of group revenue in first half FY12 (FY11: 30%) • Half of top 10 clients held for more than 5 years • 17 clients generated revenues over £1m per annum in FY11 24
Slide 25: Group Structure
Group Structure Next 15 Technology Consumer Corporate Digital & PR PR Comms Research Blueshirt Beyond Bourne Animo Text 100 Bite OutCast Lexis M Booth 463 (76%) Redshift (85%) (51%) (90%) 25
Slide 26: Recent trading history
Recent trading history Item 2008 2009 2010 2011 Revenue £63.1m £65.4m £72.3m £86.0m Adjusted profit £6.58m £5.25m £6.61m £8.39m before tax Adjusted profit 10.4% 8.0% 9.1% 9.8% before tax margin % EBITDA £7.4m £5.5m £8.4m £10.7m Net cash from £8.5m £4.8m £5.1m £8.8m operating activities Adjusted dilu
Slide 27: Contingent consideration and minority interests
Contingent consideration and minority interests Prospective cash commitments : 2013 – 2016 • The figures show undiscounted estimates, Cash commitments £m assuming that shares are FY 2013 1.7 issued in those acquisitions where they form part of the FY 2014 3.8 consideration. FY 2015 4.5 • Cash can be
Slide 28: Office locations
Office locations US EMEA APAC San Francisco London Tokyo New York Paris Hong Kong Washington Munich Beijing Boston Milan Shanghai Rochester Madrid Kuala Lumpur Los Angeles Amsterdam Singapore Stockholm New Delhi Copenhagen Mumbai Helsinki* Bangalore Oslo Chennai Johannesburg Sydney Seoul* Tapei* Auc
Slide 29: END
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