S4 Capital Plc · LSE:SFOR
S4 Capital — Q1 2021 Earnings Presentation
25 slides from S4 Capital's earnings presentation, May 2021
Slide 1: 2021 Trading Update
2021 Trading Update May 2021
Slide 2: Contents
CONTENTS 01 Trading Update 02 Content Practice 03 Data & Digital Media Practice 04 Clients 05 Mergers 06 Summary & Outlook 07 Q&A 2
Slide 3: Trading Update
Trading Update Trading Update 01 3
Slide 4: Financial Performance
Trading Update Financial / Q1 reported Revenue up 71% to £121.6 million Performance / Q1 reported Gross Profit up 71% to £104.0 million / Q1 like for like and pro-forma Revenue up 35% / Q1 like for like and pro-forma Gross Profit up 33% / All regions showed strong growth / Cash flow remains strong with
Slide 5: Gross Profit performance like-for-like
Trading Update Gross Profit performance like-for-like 5
Slide 6: Revenue and Gross Profit by Practice
Trading Update Revenue and Gross Profit by Practice * like-for-like relates to 2020 being restated to show the unaudited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2021 applying currency 6 rates as used in 2021
Slide 7: Gross Profit performance like-for-like by practice
Trading Update Gross Profit performance like-for-like by practice 7
Slide 8: Gross Profit by Geography
Trading Update Gross Profit by Geography * like-for-like relates to 2020 being restated to show the unaudited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2021 applying currency 8 rates as used in 2021
Slide 9: Content Practice
Content Practice FORRESTER Geopolitical Disruption Demands Local Trust (GMOs At Global Brands Must Pivot To Truly Muttiocal Operations by Thomas Husson February 11, 2021 Why Read This Report Key Takeaways Even before COVID-19, significant economic, Tectonic Shits Are Acceler poltca, and tech trends
Slide 10: Content Q1
Content Q1 01. Main focus Q1 02. Whoppers 03. What’s next Main focus this year is on building We identified 5 Whoppers: (20M We’ve never seen this type of new integrated clients teams across USD Rev) business activity, and it feels like a Content, DDM and Countries for Google once in a decade opportu
Slide 11: Our Client Team Process
Our Client Team Process ● Kicked off Integrated reporting and forecasting process for Tier 1 & 2 Clients across Content and DDM ● Monthly forecasts and account updates provided by Client leads ● Reviewed strategic account updates with senior leadership for all Tier 1 and select Tier 2 accounts led by
Slide 12: Whopper updates
Whopper updates ● Significant reduction in forecast uncertainty since RF0, ● Additional 2021 upside possible when MDLZ 2022 due to increase in revenue across photo/film, expansion budgets are available in August. of retained team, and integration opportunities. ● MM Client team actively engaged in cli
Slide 13: A view of our work
A view of our work BMW i4 Landing Pages Social ads MINI & i4 Newspaper ads for MINI Germany MINI YouTube how to videos
Slide 14: What's next
What’s next ● General client optimism and budget growth, especially in Tier 1 and 2 Clients, with Social and Fashion being the fastest growing parts of the business. ● Expanding and further integration of Decoded, Jam3, TOMORROW and Staud Studios. ● Growth also fueled by expansion of S4 capabilities
Slide 15: Data & Digital Media Practice
Data & Digital Media Practice 03 Data & Digital Media Practice 15
Slide 16: Demand for Performance Marketing Services Accelerates
Data & Digital Media Practice Demand for Performance Marketing Services Accelerates Recent Mergers Performance Budgets Lift Opportunities and Trends ● COVID era’s acceleration of digital ● As advertisers start to see 3rd party data Metric Theory transformation and forced transition of targeting dimi
Slide 17: Privacy is disrupting digital marketing; S4 is uniquely positioned to help advertisers adapt
Data & Digital Media Practice Privacy is disrupting digital marketing; S4 is uniquely positioned to help advertisers adapt Digital marketing is in the A massive market for A realignment of digital media The S4 portfolio of companies and partners covers the midst of a decade-long state multidisciplin
Slide 18: Clients
MEDIA AGENCIES $4 Capital’s MediaMonks Gains Allianz as New Client MediaMonks has begun the the Clients MEDIA . : MONKS Allianz wi) a aysrementeemax —@ PREMIUM) “°F =
Slide 19: Q1 - A strong quarter for new business
Clients Q1 - A strong quarter for new business Land & Expand New Clients 19 Pitches
Slide 20: Our client portfolio
Clients Our client portfolio Q1 2020 Revenue Q1 2021 Revenue 20 Based on 100% of S4 Capital Q1 2020 land Q1 2021 reported Revenue
Slide 21: An attractive and expanding client base
Clients An attractive and expanding client base Average Revenue by Client (£m) Q1 2020 Q1 2021 4,567 No of % of Cumulative No % of Cumulative Clients Revenue % Revenue of Clients Revenue % Revenue 3,324 2,980 Above £5m 1 26% 26% 2 18% 18% 1,979 £1-£5m 7 18% 44% 16 29% 47% 1,523 £0.5-£1m 10 10% 54% 1
Slide 22: Mergers
How Sir Martin Sorrell Hijacked ule Mergers orrible year on Madison Avenue. All major ad groups had shrunk
Slide 23: Mergers in Q1 2021
Mergers Mergers in Q1 2021 May 2021 Raccoon Group Mar 2021 Jam3 Feb 2021 Datalicious Jan 2021 Decoded Metric Theory TOMORROW Staud Studios 23
Slide 24: Summary & Outlook
Summary & Outlook Summary & / People are safe and mostly still working from home; concern for colleagues in Brazil and India Outlook / S4 Capital continues to lead the industry in growth and margin / Strong balance sheet, liquidity and cash flow / Healthy new business record and pipeline / Significant
Slide 25: Q&A
Q&A Q&A 25