S4 Capital Plc · LSE:SFOR
S4 Capital — Q3 2020 Earnings Presentation
39 slides from S4 Capital's earnings presentation, November 2020
Slide 1: 2020 Q3 Trading Update
November 2020 2020 Q3 Trading Update
Slide 2: Contents
CONTENTS Trading Update The Market Content Practice Data & Digital Media Practice Clients Mergers Summary and outlook Q&A 2
Slide 3: Trading Update
Trading Update Trading Update 3
Slide 4: Financial Performance
Trading Update Financial / Q3 reported Revenue up 53% to £86.4 million Performance / Q3 reported Gross Profit up 79% to £75.3 million / Q3 like for like Revenue up 13% / Q3 like for like Gross Profit up 23% / All regions showed strong growth / Cash flow remains strong with net cash balances averaging £
Slide 5: Revenue and Gross Profit by Practice
Trading Update Revenue and Gross Profit by Practice * like-for-like relates to 2019 being restated to show the unaudited numbers for the previous period of the existing and acquired businesses consolidated for the same months as in 2020 applying currency rates as used in 2020 **Pro-forma numbers rela
Slide 6: Gross Profit by Geography
Trading Update Gross Profit by Geography * like-for-like relates to 2019 being restated to show the unaudited numbers for the previous period of the existing and acquired businesses consolidated for the same months as in 2020 applying currency rates as used in 2020 **Pro-forma numbers relate to unaud
Slide 7: Gross Profit performance like-for-like
Gross Profit performance like-for-like arch September
Slide 8: The Market
The Market 8
Slide 9: The Market
The Market Source: ZenithOptimedia June 2020 9
Slide 10: The Market
The Market Source: MoffetNathanson October 2020 10
Slide 11: The Market
The Market Source: MoffetNathanson October 2020 11
Slide 12: Media Spend by Category 2000 - 2021
$bn Media Spend by Category 2000 - 2021 The Market $bn 2019 Revenues⁷ 2019 Cloud Revenues ($M)⁶ Cloud Business Process Services (BPaaS) $ 45,212 Cloud Application Infrastructure Services (PaaS) $ 37,512 Cloud Application Services (SaaS) $102,064 Cloud Management and Security Services $ 12,836 Cloud
Slide 13: Content Practice
Content Practice Content Practice 13
Slide 14: Content Practice
Sail Wy COVID-19 Recap When the global pandemic shut economies and brought businesses to a standstill our content practice got hit in March-May across our Film, Experiential, some consultancy capabilities and travel Clients. Intro 2020 has been a fascinating year. Our Response As others licked their
Slide 15: Solutions Fit For A Global Pandemic
Solutions Fit For A Global Pandemic Stepping up to the Virtual Stage Powering Events with LiveXP Our cloud-based suite of livestreaming tools, LiveXP, is built to power the future of virtual events. The suite is built to enable two-way interaction between audiences and talent in the moment, turning
Slide 16: Named Fastest Growing Company (Three Times)
Named Fastest Growing Company (Three Times) Adweek names MediaMonks, CIRCUS and Firewood in its yearly list of Fastest Growing Agencies The Fastest Growing feature honors the top 100 agencies and 10 top solution providers—large and small, from all over the world—whose industry presence is on the ris
Slide 17: The decision in the biggest auto pitch of the year has been made
Content Practice The decision in the biggest auto pitch of the year has been made. “MediaMonks will be "at the heart" of the new set-up working on creative and production.” — BMW, in Campaign Magazine 17
Slide 18: Welcoming a New Whopper
Welcoming a New Whopper By consolidating content and centralising the European agency and partner network, the BMW Group is establishing an extremely efficient, high-performance marketing engine capable of supporting individualised and modern customer relationship management across all touchpoints f
Slide 19: We Launched MediaMonks Germany
We Launched MediaMonks Germany Growing our creative hub and client presence Having secured our BMW Whopper we wasted no time capitalising on the BMW & MINI win momentum and opened up shop in Germany. The increased geographical presence in one of Europe’s major economies will see our creative hub in
Slide 20: Omnicom's Wednesday Agency Becomes MediaMonks Fashion
Omnicom’s Wednesday Agency Becomes MediaMonks Fashion Weaving Digital into the Fabric of Fashion With purchase decisions being made increasingly online, the tactility and physicality of the experience has never been more important, whether it’s evoking the feel of the materials up-close, or the exci
Slide 21: We Opened Our First Office in France
We Opened Our First Office in France Merger with Dare.Win sees MediaMonks France open its first office in Paris. We're excited to connect with Dare.Win’s diverse team and lean on their support in bringing a new, flexible model to brands in France—Europe’s third-largest advertising market—and offerin
Slide 22: Content Practice
Content Practice 40 Talents From brand teams to musical acts to celebrity guests, we hosted enough talent to rival the Emmys. 2 Full Days We managed to squeeze an entire conference circuit’s worth of announcements into a single weekend. Select media were invited to access the electronic press kit fe
Slide 23: The countdown of countdowns
Content Practice The countdown of countdowns to ensure everyone was hyped and could still get comfortable. 35+ speakers across 15+ sessions and 3 realities, providing over 12 hours of content. 23
Slide 24: What's next?
What’s next? ‘WERE SEEING A LOT OF BRANDS GO, ‘WE ‘CAN NO LONGER SHORTCUT TO FAME AND ‘REACH WITH 30 SECOND SPOTS.’ A New Partner of Record Feed the Feeds In order to create the two-way conversation consumers crave, brands need to stop pushing the ‘big idea’. Instead, they need to “feed the feeds” w
Slide 25: Data & Digital Media Practice
Data & Programmatic Practice Data & Digital Media Practice 25
Slide 26: Digital Media Spend Has Rebounded From COVID-19
DIGITAL MEDIA SPEND HAS REBOUNDED FROM COVID-19 26
Slide 27: Harnessing the Momentum in Digital Media and Data
WE’RE HARNESSING THE MOMENTUM IN DIGITAL MEDIA AND REDOUBLING EFFORTS IN DATA FOR CONTINUED GROWTH DIGITAL MEDIA Transformations Talent and Training Social Commerce Transformations Customer Strategy, Change Experience Customer Experience Management, CDP / CRM, Email, UX/UI In-Housing DATA Growth Clo
Slide 28: Interest in In-Housing Has Picked Up
WE ALSO SEE INTEREST IN IN-HOUSING HAS PICKED UP MightyHive helps marketers take control Why marketers need us now & how we help: The pain point MightyHive solves: Our unique value: The differences between digital haves and have nots are obvious and growing. MightyHive helps Digital is disrupting bu
Slide 29: And Resulted in Some Big Wins
AND RESULTED IN SOME BIG WINS ...ALL WHILE EXISTING WORK CREATES MOMENTUM FOR MORE 29
Slide 30: Sprint Takes Control
SPRINT TAKES CONTROL by bringing digital media in-house A VISION FOR DIGITAL TRANSFORMATION As part of a massive turnaround effort, Sprint embarked on a major digital transformation journey to drive increased digital sales and improve the company's ability to respond to a competitive market. The firs
Slide 31: Expanding That Success Across the S4 Proposition
AND WE’RE EXPANDING THAT SUCCESS ACROSS THE S4 PROPOSITION We are purely digital Holy Trinity of: Faster Data Content Better Digital media Cheaper With a Unitary Structure 31
Slide 32: Integrating More Capabilities to Bring to Clients
AND INTEGRATING MORE CAPABILITIES TO BRING TO CLIENTS Social Artificial Performance Cloud Measurement ECommerce Intelligence 32
Slide 33: Clients
Clients Clients 33
Slide 34: Land & Expand
Q3 - A strong quarter for new business Land ra yS bd . i in . w Veet Bp Fidelity Whirlpool (a sc onp Meat EF Mobile Klarna. S&S ©} sunrun << — Ajshopify ~patcaro mercedo JEP] fey Research Hospital & Expand q Electrolux P PayPal U ber Ey WR ®@ sprint» P&G Mondeléz, amazon — Novartis NETFLIX Google LO
Slide 35: Client portfolio
Clients Client portfolio 35 Based on 100% of S4 Capital Q1-3 2020 like-for-like Revenue
Slide 36: Mergers
Mergers Mergers 36
Slide 37: Mergers
Mergers i DARE ERIN @ ORCAPACIFIC brightolue im & E; ep 9 Data & Digital Media Geography eCommerce Digital Transformation 37
Slide 38: Summary & Outlook
Summary & Outlook / People and their families generally safe and mostly still working from home. / Broad diversity in both gender and race, but more to do in the Black community. Summary & / Strong Q3 performance, now back to pre-covid19 levels and targeted performance. Outlook / Q4 on track to deli
Slide 39: Q&A
Q&A Q&A 39