Page 2 - Project Spring

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“A leading international marketing solutions and integrated communications specialist to local and global blue chip brands
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Innovative technology underpinning the services and solutions
Agency Stsraetrevgicyeasnd Insight, account handling, dceospigynw, dritiginitga,l, TV, video and animation for the worlbdr’sanledasding
Branded Environments Managing brand prhoyllsoicuatl ascpraocsess
Delivery and fulfilment National CDeisnttrribesutihoant osftPoOreSmtoillAioPnSs’s logistics and installation teams
Marketing technology The Marketing sOupeproarttiosnclSieunittes mmultai-rkcehtaingnel campaigns – from creation to delivery
Print Management A hybrid model pursoindgucinti-ohnouansed msaunpapgleydcghlaoinbal
£178m
YE20B Revenue
11 offices 25 sites
50+
years’ experience
900+ employees
UK | Europe | Rest of World Global Revenue split (location of invoicing)
UK headquartered
with a growing international footprint
Make more possible.
A leading international marketing communications specialist with an integrated end-to-end solutions led approach
Highly capable, experienced and ambitious management team
Attractive underlying dynamics in the global marketing, communications and sourcing space
Strong financial profile, track rewceollr-dinovfeosrtgeadninicfrgarsotwrutchtuarned
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OUTSTANDING REPUTATION AS A VALUE ADDED PROVIDER OF COMPLEX, INTEGRATED MARKETING AND COMMUNICATION SOLUTIONS
3 Integrated service proposition across the marketing value chain differentiates APS from its competitors
3 MplualttfiosremrveicneablilneeAcPaSptaobpilirtoievsidaenmdoterechenffiocloiegnyt, controlled and cost effective solutions
PROVIDING THE RIGHT SOLUTION
TO THE CHALLENGE
3 Smoeleutiaonds-elexdceceudstohme edrecmeanntrdics aopf ipnrcoraecahsitnog complexity in marketing communications driven
by technological advancements
3 Fplreoxviebnleatboilcithyatnogminogvmeianrtkoedtilvaenrdssecarpeeasanda
THAEP4SD’ M’SETTHAOTDUONLDOEGRYPIN
Discover the challenge
Design the solution
Deliver a better service
Develop a customer relationship
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Key attributes of platform
Rapid configuration
Highly configurable platforms, for quickly implementing new client’s requirements.
Centralised control
The ability to run and monitor a centralised system to continually improve supporting processes and procedures.
Overview
Our Marketing Operations Suite platform is developed and managed by:
• A team of 40+ IT professionals
• Technical specialists in:
Charity
Financial Services
Public Sector
UK Trade
& Investement
Retail
Highlights
3
Extension of service lines
ension of Production Ext
- Software development - Secure hosting
- Data analysis
- Business processes optimisation - Automation & Integration
ExJeochuntivHeoDlmireecstor Joined APS Group in 2010
ExeKciumtivNeaDyilreocrtor
Delivering through the Market Operations Suite
loMcMfarueolilsdmtieicadhtePadmunobnpceluialsmtahenesdnr ts baeAntdwddeWyienongourtiknhpfltereomgwcreoassdtisouenlses
BSrhanred bProarntadl
gaussideetslinweisthaanldl Content
SatAollsrsdaegigteiMtfaalcanislaistgyetfrsor
OMpeanratgioenrs
Mandagsuepprloydcuhcatinon across all channels
TdarisgheshevetAtlasoPupaSdniniMdegnaA,crcPkereSeatasitntoitgnhlugeOt,ipropigenrohrsadtututisoicmininsegg.Sthauenitderigdgheutlidivcehsraincglniemnl tfaosrrkintehteing
£6m £26m YE19£6R1emvenue £52m £16m
RpRSureopspolysnitCsioihbnaleinfor Sthaeleosv, eMralrlksettriantgegayndfoAr PDSirect Senior responsibility for APS US
ManaginAgllDainreDctoyr l(Secotland)
Joined APS Group in 2004 M(EdaninabguersghopaenrdatGiolansgaocwro) ss Scotland
Also looks after key financial services accounts in London
Previously led MBO of two companies
ManaginKgoDeinreLcutoijrt/eITnDirector Joined APS in 2010 following the acquisition of
rReelastpeo4nusible for group wide IT operations Focus on development of bespoke software systems
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RtRshuepspUloKyncgshiobavlienrfnomr kteheneyt osavtcaeckroeauhllnostltdr(CaetCreSrge)ylaftoior ninsdhirpescftor
EJxoechuntiNveoDdidreinctgor
Joined APS Group in 2010
RthespUoKnsible for all European business outside Responsible for all private sector clients in the London / South region
APS’ existing geographic footGpreinotgraphic expansion
stakeholders
3 3 3
Diverse range of blue-chip customers across mu1 ltiple sectors... ...in many cases long-standing, deeply embedded relationships
APS takes a partnership approach to developing and delivering customer solutions...
BCSC Purple Apple Marketing Award Winner GO Awards UK: Best Service CSRIntfoernSaktiilolsnDaleEvxecloepllemnecnetAward Scottish Design Awards
Marketing Society Awards Scottish Creative Awards
TChbueusstcoionmreesesorftDhyaotuar makes you unique
MBeuapseuinrrfeosrasmnIdanntaecnlelaigdlyeastneackey
2010 2011 2012 2013 2014 2015 2016 2017 2018
Central Repository
Oepxceerallteionncael
Brand Management
EnanbdlinSgolSuetirovnicses
Digital Transformation
£1,0200k GDOigAitawlaBrdooskSWcootlraldnd-MBeasritnSeeArvtliacse
Cloud
Compliance, Security & Privacy
£4.5m to £15.7m Turnover
(£400k) to £1.8m EBITDA +growth
££
A Hybrid Cloud solution (Private and Public cloud), that scales and
provides options where necessary.
Integration
Ability to integrate with client’s and supplier’s systems (using API’s) IT Business Alignment team
enabling Single Sign On, “Purchase to Pay” and data exchange.
Micro Services and Event Modernising Driven Architecture Architecture
Rapid Application Development
Component Library
Move to (Hybrid) Cloud
2011
OPnaS-rcblioaotmatirsedhnetd ParnedscSrcipotitoisnhs
2014
54PPFoDrnaAm2S+e1w+w1onrk clientsAwards
££11,85.07m0k
2016
GOlnaC-sbogouoanwrcdCileitdy
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Disclaimer
Innovative technology underpinning the services and solutions
Scottish Government case study
Highly capable, experienced and ambitious management team
Deliverable, low risk strategy with multiple growth drivers and further upside opportunities
Communications Manager
Designanoynfcoer,manayt ofourtmat in OyorduerWraoesrbsedStoshwonpnlloinaed
ColSletoctr,ecPornotfirolel rand optimise POS
caMmopCnaiitmgonrpsyaoaigunnrdmTpraraorckmkeeotritniogns
£71.7957mk
£164m
£102m
£68m
£42m
£0
Framework clients 2018: 95
2010: 36
£8.6770mk
£1909.17mk
(office
locations)
Compliance to ISO standards (like 27001 and Cyber Essentials+), sustaining regular penetration testing, evidencing robustness, following latest security standards and guaranteeing your privacy. Managing end-to-end new business and new service line onboarding, digitising workflows and processes.
£
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Secure communication Combining print, damtaamil saonratgaetiomne, nt persaondalcisartdion in one place
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85%
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Long-standing, loyal and diverse blue chip client base with a proven ability to ‘land and expand’
Deliverable, low-risk strategy with (bomthulotirpglaengicroawndthindorirvgearnsic)
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BUILDING AND MAINTAINING PARTNERSHIPS
3 Blue chip client base with market leading cbustinoemsesr retention (98%) and high levels of repeat
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UK advertising market expenditure3, 2013-19F (£bn)
SEcoounrcoemAicAs/,WExApReCrt,iGntreoruvpieMw,sS,mMiathneargsePmirae,nDtMinAfo,rImPAatBioenllwether, OBR, IMF, NIESR, Oxford
Notes
1 Includescreative,digital,radio,newspaper,magazines,cinemaandoutdoor
23 VInaclluedseasncdregartoivwet,hdingi2ta0l1,5d-i1re6cntomtaciol,mprpoamraobtlieontoal2l0ea17fleotnswaanrdsbrgoivcehnurdeesc,ilninserintsG,mBPa/rkUeStiDng
collateral, POS signage and displays
Global advertising market1, 2015-19F ($bn)
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2020B
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Other
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CLICK HERE FOR BABY BOX VIDEO
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3 Successful
and innovative management team with key industry, crelileantitoannsdhipbsrand
3 Tdcraeaplcivakebrielyitci–eosprdrinoovgfernowing bcanaupdsintcaeulisstionegms aoenr dtmreanrdkset
3 Dprinvcinipglethseokfethye busiltinoenssvalnudesa, culture opportunity and diversity
3 Backed by a strong second tier team
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APS at a glance
Business overview
- International multi-channel marketing solutions and customer communications provider
- Solutions-led and customer centric approach
- Integrated end-to-end capability supporting the promises the business makes to its customers
- Strong entrepreneurial spirit and family-owned ethos enables APS to attract and retain clients
- Long-standing, loyal and diverse blue-chip customers
- Unique proprietary technology offering integrated
solutions across the entire value chain
- A global team of 900+ employees
- Success is a direct result of winning and building
Key facts and figures
A compelling investment opportunity
1. 2. 3.
A compelling investment opportunity
Attractive underlying market dynamics...
“
customer relationships
Financial track record
Revenue
17% revenue
CAGR from YE15-YE20B IMSaOn1a4g0e0m1e-nEtnSvyirsotenmental
4.
5.
6.
16..5% CAGR
£83m
2015 2015
£178m
£101m
2020B 2020B
Belgium
Germany
98%
A CULTUARNE DOFREATATIRNAICNTGINTAGL, ENNUTRTURING
9so0c0i+ael cmopnlnoeyceteivsitdye, ldivaetar einffseicgthivt eanddesbirgann, dcionngtent, Formalised wellbeing program in place for all
employees
Culture built on values, opportunity and diversity
m“WoerewoenrleiniembparseesdsecdomwmithunAiPcSat’iodnigsi”tal capabilities...as we offer ou- rMcaurkestinogmMeanrasger
We saw APS as a strategic partner and a digital native, they’ve introduced eBooks and microsites which was quite innovative” - Head of Communications Services Our budgets remain under pressure, but I can’t see us not doing the high- profile print jobs...it’s critical for us” - Senior Procurement Manager “wAePbSsditoeeHs ToMurLs...ewcuereusecdantonidnogs, carenantinivgeiwn-ohrokuasnedanstduhdaiod i2ncdleusdigingeresmbuatilwaend found APS had higher end capabilities and was more cost effective”- Head of Marketing
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2020B
APS at a glance
Key facts and figures
A compelling investment opportunity
Attractive underlying market dynamics
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Disclaimer
This document is being provided to the addressed recipients for information only and on a strictly confidential basis in connection with the possible disposal of the shares of APS Group Ltd (“APS”). Save as specifically agreed in writing by N. M. Rothschild & Sons Limited (“Rothschild & Co”) this document must not be disclosed, copied, reproduced, distributed or passed, in whole or in part, to any other party.
This document is for the exclusive use of the addressed recipients to assist recipients in deciding whether to proceed with a further investigation of APS. This document does not constitute an offer or invitation for the sale or purchase of securities or any of the business or assets described in it.
Ttohbeedcoocmumpreenhtehnasivbee,ehnaspnreoptabreednoindtheepebnadsiesnotlfyinvfeorimfieadtiobnyAprPoSv,idReodthbsychAilPdS&aCndoaolrsaonfyroomthpeurbplaicrtly.aTvhaeiladbolceuimnfoenrmtdaotioens.nTohtiscoinnfostrimtuatetioan,awuhdicithodroaedsuneodtipliguerpnocret roetvhierwenanqduirsiheosualnddnportobcedcounresstrtuheadt wasousuldch(o. rTshheoiunlfdo)rmotahteiorwn ipserobviedeudndsehrotauklden.ot be relied on for any purpose and should not in any way serve as a substitute for
No representation or warranty, expressed or implied, is or will be made and, save in the case of fraud, no responsibility or liability is or will be accepted by APS, Rothschild & Co or by any of their respective directors, officers, servants, advisers, agents or affiliates as to or in relation to the accuracy, sufficiency or completeness oesfrtwihmaisrardtaeonsctyou,rmefxoeprnertecosarsethsdeaoninrdfimonropmtlhiaeitndiog,nisinfotrhmwisinldlgobcethumembaedansetisahsooftouthltdehebdeoacreuhlmiievedenomtnoeransftoaorraprnreoyamrseoislnieaanobcrlerenppelasrecsseoedfn,otaantditohneoadsroetcloiuatnmhcenfusthtbuoyrueal.dnybpeeprlsaocnedwhoant,saoneyvper.oNjeoctrieopnr,etsaergnetatsti,on
Law or other regulation may restrict the distribution of this document in certain jurisdictions. Accordingly, recipients of this Memorandum should inform themselves ajaMubsraioisrsukddeticteastsnioAcdnrcio.btTbe2hs0dies0irn0dveoA(Fcratiunliclmalnepec1npi9atlilci(sPIanbrbvoelemeisntlogemtgidoeainsl )tarOpnibrdruodtfrerdsg2suo0ioln0ant5toah,lrosey)rbroiesarqsaAuisrpitrtiechrmlasetoe4en9attsco(H.hTwigphiesornmsdeotntchwuinsomrtdehtohenctcUuodmnmoietpesnadtnmKoieitnascyg, oudonotshimnteictrutowotreipwsoaehnrloaotmweffdfeiutralilstsyosisbosseceuiladel toidisortinrasibsnreueinatecvsd.oi)t.anoPtafieobthrnlsyeotobFnesipnluiwaernvhcceohidadlstoSeoensbroevtcicsfuaeurlsicltihwaensaitdhipninearsnsuoycnh descriptions may not act upon the information contained in this document.
Rwoitthsthcehipldo&teCntoia,lwshailcehoifstahuethisosruiseeddsahnadrerecagpuiltatleodfbAyPSthaenFdinwainllcniaoltCboenrdeuscptoAnusitbhloeritoyainythpeeUrsnoitnedotKhienrgtdhoamnA,iPsSacfotirnpgrofovridAinPgSpanrodtencotionseaefflsoerdinedcotonncelicetniotsnof Rothschild & Co nor for providing advice in relation to the potential sale of the issued share capital of APS.
EBITDA
121818.4% CAGR
£4m
2015 20115
NethTehrelands
Canada
UStnaiteds
Sweden
Finland
- A proven and scalable - ipInlt-aehtrfonouarmstieonparol odpuecrtiaotning capabilities, global sourcing and logistics model and proprietary technology platform
- oSpigpnoifirctuanityfor feuxrpthaenrsionnternational
Diverse range of integrated solutions
£11m
YE20B EBITDA
13%
2%
Growth trends Experiential marketing growth
Supplier base consolidation
Control over delivery
Print marketing resilience
Ebcuosninoemssic growth &
Impact
Growth in brand activation & experiential marketing (e.g. POS & soefflmini-epexrmpearnienctePsOaSn)darserteatial ielenrvsirlonomk etontcsreate differentiated
Likely to benefit integrated, multi-service providers with digital, print and fulfilment capabilities
Customers prefer suppliers that can provide control across the whole marketing services spectrum and end-to-end value chain
Digital is growing; print remains a vital marketing and customer esexcpteorriefinrcmescomponent for a large number of private and public
OspuetnlodoiknftohreGmDePdgiruomwthersmupports an increase in global marketing
Long-standing, loyal and diverse blue-chip customer base
Scottish Government case study
Highly capable, experienced and ambitious management team
MNanicakgiSngneDlirseoctnor
Majority shareholder
Provides strategic direction and drives the energy and culture within the business Instrumental in the transformation of APS from a small print company to a leading international marketing and communications specialist
Deliverable, low risk strategy with multiple growth drivers and further upside opportunities
Significant upside opportunities
Technology roadmap
Financial efficiencies
Operational efficiencies
Base plan
YE20
Make more possible.
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Well established global footprint
Value for money
Digital strategic partner
Reliability/ quality
Reducing complexity
Customer experience
3 ...often resulting in repeat business through multiple contract cycles... 3 ...and a proven ‘land and expand’ model with consistent growth of
service lines
3 Unrivalled customer retention of 98% across managed service contracts
Make more possible.
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Long-standing loyal and diverse blue-chip customer base
£6800k £4200k
-£20£0k 2010 2011 2012 2013 2014 2015 2016 2017 2018 -£400k
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United Kingdom (HQ)
FranItcaely Spain
3rd contract win
in 2018 growth
£178m turnover in YE20B
£10m EBITDA in YE20B
SE£Ba1lI8eTmsDA
-££44.4090mk
£ 36to95
Radio Video
Project management
Bespoke IT
solutions
HTML web
Web microsites
2017
BSocxDotceloavnedcloe’speBtdabnyd Framewcownrktorancclstiuetponpt2sl0y21
pNeenwetbrautsioineossf ewxiinssti;ningccrleieansets Bolt-on M&A opportunities
Proposition and service development
Change of mix with more fees
Relationship timeline
2010
3o6DnPF2Pr+aA1m+S1ewbwaoosnirsk Key dclaietants
Framework clients
service lines ROI
2012 2013
CrelicernutKitSmeeyervnict eins Ctocohinatcrialtuicedtseu&phgleoracalatdhle, and Creative government
£1,0800.310m7k £9.7283mk £97.9237mk £1,65.81m4k £1,6400k
IT
2015
DOEenvt-eblropamrrisdendat nSdcoSttkltailsnlshd GlaOsgpoewneodffice
Inwdehpitenpdaepnecre Venture publishing
2018
roePnPeD5w+A1e+S1d 95 Fcraliemnetws ork

Make more possible.
Executive Team
ChiefJFoinaHncairadl Oyfficer
Client retention
90%
Contracted revenue
ISO27001 - Information Security Certifications
ISO22301 - Business Continuity Certification
ISO9001 - Quality Certification PCI DSS Accredited
3 3 3
3 3 3 3
3 Passionate 3 Energetic
3 Open
3 Honest
3 Committed
Above the
strategy & line services income for
Digital Smart forms and display publishing
Technology
Promotional products Including
sourcing and shipping
High profile projects Prescriptions RCerseeaatirvceh ODuitgditoaolr CBrueyaitnivge Datrat-wdorirvken intedrensaigtino,nal coenBvoeorskison CeBnasbuysB2o0x21
Creative design Planning
Increased fee
Joined APS Group in 2018
Rcleiesnptorneslaibtiloenfsohrimpsanaginganumberofkey RPreesvpiounsliyblgerofourpthfienafincaencdeirefucntocrtioatnGiGroup Rreelastpionshibiplesformanaginganumberofkeyclient
Joined APS Group in 2009
Today
£178m turnover in YE20B
£11m EBITDA in YE20B
3
Sgtrroownigngtrsaecrkvriceecsortdhrofudgehliaveprainrtgnoenrsphripomiosedsela–nd proven‘landandexpand’strategy
DBEULSIVINEERSESDETHROOSU-GMHA6KCE OMMOPRAENPYOVSASLIBULEES
3
Ambitious
Make more possible.
Compliance
EBITDA