1 Q1 2017 Financial Results
Legal Disclaimer 2 The material in this presentation has been prepared by The Marketing Group plc (“TMG”) and is general background information about TMG’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, should not be considered as advice or a recommendation to investors or potential investors in relation to any investment decisions. TMG accepts no liability whatsoever with respect to the use of the content in this presentation. This presentation may contain forward-looking statements that involve risks. Future performance, outcomes and results may differ from those expressed in forward-looking statements as a result of risks. Investors should therefore not rely on these forward-looking statements, which are based on the current view of management of future events and market developments. This presentation should not be construed as financial or investment advice and investors should consult their independent advisers. This presentation does not constitute an offer or solicitation of an offer to subscribe for, acquire, purchase, dispose of or sell any shares of TMG.
Agenda 3 1. Post-Period End Updates 2. The Marketing Group 3. Q1 2017 Operational Highlights 4. Financial Results for the period ending 31 March 2017 5. Outlook 6. Q&A
Post-Period End Updates
Post-Period Updates 5 1 March 2017 New CFO Appointed – Mike McElhatton 1 March 2017 New Non Executive Chairman appointed – Don Elgie 28 March 2017 New Non Executive Directors appointed – Glen Fraser & Martin Blair 20 April 2017 New board confirmed at AGM 10 May 2017 New Zealand subsidiaries Marker Metro and Marker Studio merged 11 May 2017 Ranieri acquires French PR agency, Reflexion
The Marketing Group
The Marketing Group 7 Positioning statement TMG is an agile global marketing network that aims to fill a significant niche between the big holding companies and the smaller independent agencies. There is an opportunity to provide a viable alternative to the big players who have dominated the space for so long. By structuring itself in a more progressive and modern way, TMG is able to attract top quality agencies who do not wish to “sell out” to the usual suspects. Similarly, from a new business perspective, there are a great many brands who like to work with independent agencies but require a global presence and a lower risk profile. TMG provides a middle ground between these two extremes and gives the best of both worlds: “independent spirit – global scale”.
Our Global Network 8 Our network has offices in 8 countries serving a global market
Our client base is comprised of tier one brands 9
Increasing synergy and collaboration
A period of internal focus 11 2016 - an aggressive first year • The third most acquisitive marketing group in 2016 – behind WPP and o Dentsu A global start-up, with all the challenges that can bring o New team – new chapter • An entirely new board – highly experienced in the field o A refreshed strategy and a clean start o A focus on building the infrastructure and increasing collaboration • Agile systems and processes o Real time collaboration o
4 communities of practice 12
4 communities of practice 13 BRAND INFLUENCE AMPLIFICATION SCIENCE Brand strategy PR Content Data Creative strategy Social Sponsorship Insight Broadcast Corporate affairs Promotions Media communications Word of Mouth Events Apps & Platforms Integrated Marketing communications
4 communities of practice 14 BRAND INFLUENCE AMPLIFICATION SCIENCE Channel Zero Ranieri Nice & Polite Clickverta Addiction One9Ninety Slingshot Marker Studio Advertising Black Marketing Creative Insurgence Lead Generation Brand Theatre Reflexion Wilkin Skye DAE Imagine Rain Makers
Q1 Revenue per community 15 BRAND INFLUENCE AMPLIFICATION SCIENCE € 2,748,513 € 774,627 € 1,614,803 € 2,069,768
Financial Results for the Period Ending 31 March 2017
Summary Table 17 Q4 16 € millions Q1 2016 € millions Q1 2017 Revenue N/A Revenue 7.2 EBITDA N/A EBITDA 0.12 EBITDA margin 1.7% EBITDA margin N/A EPS € 0.00 Net profit N/A Net profit margin N/A Earnings per share 1 N/A
Quarterly performance 18 Revenue QoQ -0.8% EBITDA has seasonal fluctuations Q on Q Revenue Q on Q EBITDA 7500 1500 7000 1000 6500 500 6000 5500 0 Q3 16 Q4 16 Q1 17 Q3 16 Q4 16 Q1 17
Geographical Composition of 2017 Revenue 19 Geographical analysis of Revenue 16% 20% Singapore USA 20% UK Australia NZ 30% 14%
Balance Sheet Summary 20 ( € ‘000) Cash and cash As at 31 Dec As at 31 March 2017 equivalents 2016 Cash and cash equivalents 1,459 2,418 Total current assets 8,288 9,077 Total Assets 82,688 83,215 Total current liabilities 8,173 11,437 Total Liabilities 8,849 12,004 Net Assets 73,839 71,211 NAV per share 1 € 2.47 € 2.56 1 : Based on period end number of shares of 29,861,505 (27,796,252)
Shares in The Marketing Group 21 Details to number of ordinary shares in The Marketing Group Shares Number of shares outstanding as at 31 Dec 2016 27,796,252 Number of shares held in treasury 7,297,476: Total number of shares (including those held in treasury) as at 31 Dec 2016 35,093,728 Post-period: Shares allotted for acquisition of DAE Advertising (tranche 2) in Jan 2017 1,368,042 Treasury shares cancelled in March 2017 relating to the cancelled acquisition of Astute (5,073,257) Shares allotted for acquisition of The Content Agency in Feb 2017 59,497 Share awards to Directors 50,388 Total number of shares (including those held in treasury) as at 31 March 2017 31,498,398
Outlook for 2017
Outlook for the Group 23 Continue to increase synergies and collaboration • Support the expansion of profitable, core agencies o Develop the 4 communities of complimentary services o More high quality acquisitions • Bigger acquisitions with lower risk profile and higher profits o More focus on strategic fit and value creation o Exciting new chapter • New team, new strategy, new chapter o Independent spirit – Global Scale o
Q&A
25 Thank you Please visit www.marketinggroupplc.com for more information on The Marketing Group Investor and Media Contact: ir@marketinggroupplc.com
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