Mission Group Public Limited Company · LSE:TMG
Mission Group Public — The Mission Group — H1 2021 Earnings Presentation
37 slides from Mission Group Public's earnings presentation, September 2021
Slide 1: 2021 Interim Results
2021 INTERIM RESULTS Interim results for six months to 30th June 2021
Slide 2: Too much work disappears
Too much work disappears. This isn’t a big secret, but it does seem careless. Our approach is different. Everything we do is designed to get to work that makes the difference Clients are looking for, whatever their ambition. We call it work that counts. So we collaborate because it does good, not be
Slide 3: Contents
CONTENTS Financial Business Summary Appendix review review and Outlook
Slide 4: Financial Review
FINANCIAL REVIEW
Slide 5: Profit & Loss
PROFIT & LOSS (£’M) H1 2021 H1 2020 Key H1 highlights BILLINGS 69.5 58.1 REVENUE 34.1 29.1 • 1st Half ahead of internal expectations OPERATING EXPENSES (32.1) (30.9) • Revenue up 17% overall HEADLINE OPERATING PROFIT 2.0 (1.8) • Building on firm cost control in 2020, SHARE OF ASSOCIATES/JV 0.1 - ena
Slide 6: Sequential recovery continues and forecasted to continue
SEQUENTIAL RECOVERY CONTINUES AND FORECASTED TO CONTINUE TO DO SO Revenues compared to equivalent 2019 period H1 2020 H2 2020 H1 2021 H2 2021 0% As implied by consensus -5% -4% forecast -10% -13% -15% -20% -22% -25% -26% -30%
Slide 7: Balance Sheet
BALANCE SHEET (£’M) H1 2021 H1 2020 DEC 2020 Key H1 highlights INTANGIBLES 95.9 95.5 96.2 FIXED ASSETS/INVESTMENTS 2.6 3.1 2.7 • Working capital increase driven by catch- WORKING CAPITAL 3.5 1.0 2.2 up of 2020 HMRC deferral schemes. NET BANK DEBT (3.9) (0.9) (1.2) • Underlying working capital reduct
Slide 8: Debt Leverage Ratios
DEBT LEVERAGE RATIOS CASH CONSERVATION MEASURES AND TRADING RECOVERY BRINGING RATIOS BACK TO NORMAL LEVELS 5.0 4.5 4.0 Bank 3.5 Covenant 3.0 Total 2.5 2.0 1.5 1.0 As implied 0.5 by consensus 0.0 forecast 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 H2 2021 2021 • Almost all deferred con
Slide 9: Cash Flow
CASH FLOW (£’M) H1 2021 H1 2020 HEADLINE OPERATING PROFIT 2.0 (1.8) ADD BACK DEPRECIATION 1.9 2.2 LESS LEASE PAYMENTS (1.0) (1.5) EBITDA 2.9 (1.1) (1.1) (0.6) INTEREST AND TAX Comparisons NORMALISED OPERATING CASH FLOW 1.8 (1.7) masked by 2020 WORKING CAPITAL (1.3) 7.6 ‘catch ups’ CASH FLOW FROM OPE
Slide 10: Cash Flow
CASH FLOW (£’M) H1 2021 Prior year H1 2021 H1 2020 reported catchup underlying HEADLINE OPERATING PROFIT 2.0 - 2.0 (1.8) ADD BACK DEPRECIATION 1.9 - 1.9 2.2 LESS LEASE PAYMENTS (1.0) - (1.0) (1.5) Key H1 highlights EBITDA 2.9 0.0 2.9 (1.1) INTEREST AND TAX (1.1) - (1.1) (0.6) • Strong cash generatio
Slide 11: Progressive Dividend Strategy
PROGRESSIVE DIVIDEND STRATEGY EPS & DPS PROGRESSION 10.0 9.0 HL Diluted EPS (p) As implied 8.0 by consensus forecast DPS (p) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 HL Diluted EPS (p) DPS (p)
Slide 12: Business Review
BUSINESS REVIEW
Slide 13: A rising tide lifts all the boats
BALANCE SHEET (£’M) A RISING 11 AGENCIES DELIVERED SIGNIFICANT H1 YOY TIDE IMPROVEMENT LIFTS (OUT OF *13 ELIGIBLE AGENCIES, AND THE OTHER 2 WILL BE UP YOY AT THE FY!) ALL THE BOATS * Excludes Pathfindr (not an Agency) and Innovation Bubble (acquired June 2020)
Slide 14: With some significant shifts
WITH SOME SIGNIFICANT SHIFTS 10% revenue 42% revenue 27% revenue …BUT IT’S NOT JUST THE LARGER AGENCIES CONTRIBUTING TO THE TURNAROUND 30% revenue 9% revenue 12% revenue
Slide 15: Headcount
HEADCOUNT CHANGED TO REFLECT NEW WAYS OF WORKING YEAR TOTAL UK (& EUROPE) US ASIA January 2020 1120 964 38 118 September 2021 994 873 43 78 Prelim 2022 1007 871 54 82 Forecast Applying the learnings from the last 18 months to build a more efficient and effective Group.
Slide 16: It's about people... and place
IT’S ABOUT PEOPLE… AND PLACE • All our offices are open and occupied with every care taken to ensure our workspaces remain safe • We will evolve and adapt until we find the optimum balance. We will do this through ongoing feedback from all employees • Many of our Agencies are trialling hybrid ways o
Slide 17: Our Capabilities
OUR CAPABILITIES DATA, INSIGHT BRAND MEDIA, PR, PERFORMANCE, AND STRATEGY, PROMOTION, MEASUREMENT UNDERSTANDING CREATIVE EVENTS AND AND ANALYSIS AND CONTENT EXPERIENCE DIGITAL PRODUCTION, INNOVATION AND ECOMMERCE
Slide 18: Our Focus Areas
OUR FOCUS AREAS FOR THE NEXT 6 MONTHS DATA, INSIGHT BRAND MEDIA, PR, PERFORMANCE, AND STRATEGY, PROMOTION, 3 MEASUREMENT UNDERSTANDING CREATIVE EVENTS AND AND ANALYSIS & CONTENT EXPERIENCE 1 2 DIGITAL PRODUCTION, INNOVATION AND ECOMMERCE 3
Slide 19: Data and Analytics
1. 1 DATA AND ANALYTICS INTERNALLY: CENTRAL MISSION DATA & ANALYTICS LEAD STARTED 31ST AUGUST • Consult to Perm position • Ex WPP, Publicis, Dentsu etc. • 1st 12 weeks – Discover, Review and Refine, Re-position and re-articulate • Gap analysis to drive further enhancements • Expert new business supp
Slide 20: Mission Brand Bonding Index
MISSION BRAND BONDING INDEX
Slide 21: In Summary
IN SUMMARY • A new bi-annual brand index covering 100 global brands • Utilising the most comprehensive data set of any brand index available and a bespoke algorithm • Developed and produced in-house at The MISSION Group with BrandWatch and YouGov as data partners • The MISSION Brand Bonding Index st
Slide 22: A score, a website, a new benchmark metric
A SCORE, A WEBSITE, A NEW BENCHMARK METRIC Dial through brands. Filter by Sector, by Score or a bespoke Selected brand benchmark set shows MBBI score and link to detail
Slide 23: Real time, actionable results
REAL TIME, ACTIONABLE RESULTS See the scores of competitor set or benchmark Components brands. of the MBBI score showing areas of strength and weaknesses. Score changes over time. Waves every six months.
Slide 24: What if? Modelling. Reacting.
WHAT IF? MODELLING. REACTING. MISSION WORKING HAND IN HAND WITH CLIENTS MBBI allows clients to model the impact of proposals. Meaning MISSION enables them to be agile, accurate and ahead of the curve. CURRENT SCORE PROJECTED SCORE Impact of an upweighted social media presence
Slide 25: Enhanced Creative and CX Capability
2. 2 ENHANCED CREATIVE AND CX CAPABILITY OUR VISION OF THE PREFERRED CREATIVE PARTNER FOR REAL BUSINESS GROWTH REQUIRES: • Constant evaluation of our product and creative capabilities - including ongoing review of our Agency portfolio for any further consolidation • In doing so an opportunity has be
Slide 26: Effective eCommerce Solutions
3. 3 EFFECTIVE eCOMMERCE SOLUTIONS IN A COOKIELESS FUTURE BUILDING AN ENHANCED DATA AND ANALYTICS CAPABILITY • To augment our current Media and Strategic capability • Working with an external partner • Focus on helping Clients use their own and 2nd party data i.e. Geo, Device, Time, Contextual, Demo
Slide 27: Pathfindr
Pathfindr PRIMED BUT HUNGRY Pinpointing assets. Perfecting processes.
Slide 28: The Story So Far
THE STORY SO FAR Born from technical creativity and a passion for adapting to the customer’s world, Pathfindr’s journey reflects the ability to deliver class-leading IoT solutions to global industrial companies. Pathfindr Ltd Launch of global Rapid and agile reaction 3rd generation UWB 1st generatio
Slide 29: Scalable platform to exploit IoT growth
SCALABLE PLATFORM TO EXPLOIT IoT GROWTH • Pathfindr embeds and grows long-term, deeply integrated value in customers’ businesses • IoT growth drivers are visible and widespread • Pathfindr has proven products and services • Experienced Management Team in place • High grade customers already secured
Slide 30: Opportunity: Accelerate Growth
OPPORTUNITY: ACCELERATE GROWTH • ‘Business as Usual’ plan will deliver BUT will take time to recover lost COVID momentum • Board has approved an alternative investment plan • Short term increase in capital investment (R&D) • Builds on IP created to date, pre & post pandemic • To deliver mid-long ter
Slide 31: Summary & Outlook
SUMMARY & OUTLOOK 2021 LONGER Continued sequential recovery TERM to deliver against H2 revenue target Realise the potential and investment Seamless board transition in Pathfindr Launch MBBI to showcase MISSION Group Constantly evolve our creative strategic capability and drive new business offering
Slide 32: Thank You
THANK YOU 106 New Bond Street, London, W1S 1DN
Slide 33: Appendix: Group Recap
OQ APPENDIX: GROUP RECAP fy x
Slide 34: Offices, people and agencies
28 offices Over 1,000 people USA UK Germany China Malaysia Singapore 15 agencies Hong Kong Vietnam
Slide 35: How we work: The Mission Advantage
HOW WE WORK: THE MISSION ADVANTAGE An insight driven collective of specialists with all the skills and expertise needed to deliver a flexible multi-discipline service for any Client.
Slide 36: Our Agencies
OUR AGENCIES Bray Leino April6 ThinkBDW Innovation Bubble A brand-building pioneer, Delivering strategic marketing The UK’s leading integrated A psychological insights operating from Devon, for leading technology and property marketing Agency. and behavioural solutions Bristol and Asia. automobile b
Slide 37: A Selection of Our Clients
A SELECTION OF OUR CLIENTS CLIENT RETENTION 52.8% 28.5% 16.4% Proportion of revenue earned from long-standing Clients. 5 years or more 10 years or more 20 years or more