Page 2 - Project Spring

Contents
Learn more
Innovatve technology underpinning the services and solutions
APS at a glance
Key facts and figures
A compelling investment opportunity
Attractive underlying market
Disclaimer
TshaisredsoocfuAmPeSnGt irsobuepinLgtdp(r“AovPiSd”e).dStaovethaesasdpderceisfisceadllyreacgipreiendtsinfowrrintifnogrmbyatNio.nMo.nRloytahnsdchoilnda&sStroicntslyLcimonitfiede(n“Rtioatlhbsacshisildin&coCnon”)etchtiisondowciuthmtehnetpmoussitbnleotdbisepodsisacllofsethde, 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.
The document has been prepared on the basis of information provided by APS and also from publicly available information. This information, which does not purport to be comprehensive, has not been independently verified by APS, Rothschild & Co or any other party. The document does not constitute an audit or a due diligence review and should not be construed as such. The information provided should not be relied on for any purpose and should not in any way serve as a substitute for other enquiries and procedures that would (or should) otherwise be undertaken.
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 of this document or the information forming the basis of the document or for any reliance placed on the document by any person whatsoever. No representation
or warranty, expressed or implied, is or will be made as to the achievement or reasonableness of, and no reliance should be placed on, any projection, targets, estimates or forecasts and nothing in this document should be relied on as a promise or representation as to the future.
Law or other regulation may restrict the distribution of this document in certain jurisdictions. Accordingly, recipients of this Memorandum should inform themselves ajubriosudticatniodno. Tbhsiesrdveocaullmapenptlicisabeleinlgegdaisl tarnibdutredguolnattohrey breaqsuisirtehmateenatsc.hTphiesrsdoncuinmtehentUdnoietesdnKoitncgodnosmtitutotewahnoomffeitristoisseulel odriasnreinavsoitantaiobnlytobepluiervcehdasteo sbecsuurictihesa ipnearnsoyn as is described in Article 19 (Investment professionals) or Article 49 (High net worth companies, unincorporated associations etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or is a person to whom this document may otherwise lawfully be distributed. Persons who do not fall within such 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.
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Disclaimer
Key attributes of platform
Rapid configuration
Highly configurable platforms, for quickly implementing new client’s requirements or changing existing.
Centralised control
The ability to run and monitor a centralised system to deliver business value and 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:
- Software development
- Secure hosting
- Data analysis
- Business processes optimisation - Automation & Integration
The APS Marketing Operations Suite guides clients in developing, creating, producing and delivering marketing assets and APS solutions using the right channel for the right audience at the right time.
Compliiance,toSeIScOursitayn&daPrdivsa(clikye 27001 and Cyber Essentials+), sustaining regular penetration testing, evidencing robustness, following latest security standards and guaranteeing your privacy.
IT Business Alignment team
Enabling Digital Transformation for APS’s clients, managing change with the ability to demonstrate existing implementations and client referrals.
Operational excellence
Brand Management
Enabling Services and Solutions
Digital Transformation
byoeutwr peeronctehsesemsodules and BSrhaanrde bProarntadl
gausisdeetslinweisthaanldl stakeholders
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OyordueWrraeosbrsedStoshwonpnlloinaed
CAPloSuidmplemented a Hybrid Cloud solution (Private and Public cloud), that scales and provides options where necessary.
IAnbteiligtyratotiointegrate with client’s and supplier’s systems (using API’s) enabling Single Sign On, “Purchase to Pay” systems and data exchange.
Micro Services and Event Driven Architecture
Nick Snelson
Managing Director
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
Executive Team
Jon Hardy
Chief Financial Officer
Joined APS Group in 2018
Responsible for the finance function Previously group finance director at Gi Group Previously led MBO of two companies
ManaginKgoDeinreLcutoijrt/eITnDirector Jreolianted4uAPS in 2010 following the acquisition of
Responsible for group wide IT operations Focus on development of bespoke software systems
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Significant upside opportunities
Technology roadmap
Financial efficiencies
Operational efficiencies
Base plan
YE20
Deliverable, low risk strategy with multiple growth drivers and further upside opportunities
Rapid Application Development
Move to (Hybrid) Cloud
CDoemsigmnuonnicaet,ioanys fMoramnagt ienr any format out
Geographic expansion
APS’ existing geographic footprint (office locations)
Today
Innovatve technology underpinning the services and solutions
Long-standing loyal and diverse blue-chip customer base
Scottish Government case study
Highly capable, experienced and ambitious management team
Modernizing Architecture
Component Library
John Holmes
Executive Director
Joined APS Group in 2010
Responsible for managing a number of key client relationships
Rpreosposnitsioibnle for Sales, Marketing and APS Responsible for the overall strategy for Direct Supply Chain
Senior responsibility for APS US
ManaginAgllDainreDctoyr l(Secotland)
JMoaineadgeAsPoSpGeroautiponins a20cr0o4ss Scotland (Edinburgh and Glasgow)
Also looks after key financial services accounts in London
Kim Naylor
Executive Director
Joined APS Group in 2009
Responsible for managing a number of key client relationships
RthespUoKngsiobvlerfnomr keenyt satcackoeuhnotld(CeCr Sre)lationships for Responsible for the overall strategy for indirect supply chain
EJxoechuntiNveoDdidreinctgor
JRoeisnpeodnAsPibSleGfroruapll iEnu2r0o1p0ean business outside the UK
Responsible for all private sector clients in the London / South region
3 Successful
and innovative management team with key industry, client and brand relationships
3 Track record of dcaeplivaebrilyiti–esprinovgernowing businesses and capitalising on market and customer trends
3 Dprinvcinipglethseokfethye business and a culture built on values, odpivpeorsrittuynity and
3 Backed by a strong second tier team
Proposition and service development
Delivering through - Market Operations Suite
localMiseuedldteiicdamhoPapcunulanbmteleielsnahntesdrfrom WAdodriknflgoinwtsegration
Asset Manager
Staol rdaigeitafal acsilsiteytfsor
Customer Data
Tbhuesinceosres tohfaytomurakes you unique
Store Profiler
Cololepctitm, cisoentProOlSand
MeBaupsueinrefeosarsmndIannatecnlealyidglyaestnaeckeey OMpeanratgioenrs caMmoCpnaiimtgonrpsyaoaigunnrdmTpraraorckmkeeotirtniogns Maacanrnodassgueaplplpcrloyhdacunhcnateionlns
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 customer relationships
A compelling investment opportunity
A compelling investment opportunity
AttraActtirvaectuivnedeurnlydienrglyminagrmkeatrdkyentadmynicasm...ics... Attractive underlying market dynamics...
Financial track record
Revenue
Well established global footprint
25 sites 50+
years’ experience
17% revenue
CAGR from YE15-YE20B
16.5% CAGR
£83m
2015
£178m
2020B
£10m
2020B
NethTehrelands
Canada
United States
- 3 -
Finland
Italy
France Spain
Belgium
Germany
- -
-
A proven and scalable ipInlt-aehtrfonouarmstieo-nparol odpuecrtiaotning capabilities, global sourcing and logistics model and proprietary technology platform oSpigpnoifirctuanity for feuxrpthaenrsionnternational
ISO14001 - Environmental Man- aISgOe2m7e0n0t1S-ysIntefomrmation Security
Certifications
ISO22301 - Business Continuity Certification
ISO9001 - Quality Certification | PCI DSS Accredited
Highly capable, experienced and ambitious management team
EBITDA
18.4% CAGR
£4m
2015
Sweden
“We we“Wr“eWeiemwwperereresesiimemdprwreisthseAdPwS’itdhigAiPtPaSl’cdaipgaitbailictciaeapspa...abbailisiltitweiese...so...fafaesrwoeueroocffffuesertroomuurercrsucsutsotmomersers more omWnmloienoresereabowaonsnAleilniPdneScbobaamassmaeudsntcricoaoamtmteimomgnuiscun”inpciacatariotinosen”rsa” nd a digital native, th-Meayrk’veetinign-M-tarMaorknaderaktgueinetcgirnegMdMananaaggeerr “eWBoeoskaeswB“eaWBAonPoeodoSksmksaswiascnarAaondPsdsmSittmreaiacsitscerwrogaoshiscitcitetprheasaswtrewtawgnshieciiqcrchpuhaainwtwredtaniasnednqr iouagvinitaedeatliaivnedna”iotogivivtaeat,tlivitnvhe-aeHe”t”yeiv’avede,-oitnHfh-etMHerayeoda’avdrokdefueCcotioinfenmtMdgmr,oauWdrnkiucWeacttiFienondgs, SWerWvicFes
ScounpspolieliScdrouabnpSctaiousposnpolneispeloildirleidarbabtatiaoisosneLdikgeitalyl,topLdLdrbikginkgeietitntalayeln,t,ftoiopdptrbribfineunetnltefnaeiaglnefimnrdtfaidietfntuneitfnleutdfitglcle,fmriamaglmeptreunaedtltbtne,cimi-tdalsipct,ueiaelmrtbpsvi-uiialsciletbteirei-vlspitcerieorsvpircdoevirpdserorwsviwitdhiethrs with
ControlCoCvnoetnrtorolloverrCustomCeCrussptormemferrsssppurerpfepfrleiserurspsuptlphieparlstiecthrasantthcparnot vpciradonveidpcerocnvotirndoterlocl ontrol deliverydelilviveeryry atoc-reonsds vtathaoatcoecl-ur-eroeowenshdscsohtvthlaheaelielunumwewehacohcrhlkoheaeliaenmtinamrgkaesrtkeinergvtisncegervsiceserpsveiscpetersuctmsrupmaencadtnrudemnendad-n- d end-
Diverse range of integrated solutions
GlobGalGloablodablvaedlrtavisedirvntiegsrintmigsaimnrkgaermkt1ea,tr2k,02e10t151,5-2-11091F5(-$1b9nF)) ($bn)
UK adUvKerUtaiKsdivnaedgrvtmeisraitnirsgkinemgt eamxrakprektenetdxeitpxuperenn3d,dit2iut0urer1e3,-,2120901F13-(-£119b9FnF()£(b£nb)n) +5.3% +5.3%
Ideas & Design
Creative design Content & copy VideSotu&dpioh&otopgrer-aphy production Design development / prototyping
Multichannel Production Print management & pDroidguitacltion ATL / BTL advertising Secure
Strategy & Insight Brand & marketing devsetrlaotpemgyent Customer journey & campaign planning Analysis & dmeveealsoupremmeennt t/ prototyping
85%
A leading international marketing communications specialist with an integrated end-to-end solutions led approach
Attractive underlying dynamics in the global marketing, communications and sourcing space
rSetcronrdgofifnoarngcaianlicpgrorfiolwe,thtracnkd well-invested infrastructure
- 5 -
Long-standing, loyal and diverse blue chip client base with a proven ability to ‘land and expand’
Delivemraubltliep,lelogwr-orwistkhsdtraivtegrsy with (both organic and inorganic)
OUTSTANDING REPUTATION AS A VALUE ADDED PROVIDER OF COMPLEX, INTEGRATED MARKETING AND COMMUNICATIONS SOLUTIONS
3 IvnatleugeractheadinsderiffveicrenptrioatpeossAitPioSn farocmrositsstchoempaertkietotirnsg 3 Multi service line capabilities and technology platform enable APS to provide more efficient,
PROVIDING THE RIGHT SOLUTION TO THE CHALLENGE
Solutions-led customer centric approach to meet amnadrkeextcinegedcothmemduenmicaantdiosnosfdinricvrenasbiyngtecohmnoplloegxictyalin
advancements
Flexible to changing market landscapes and a proven ability to move into diverse areas
THAEP4SD’ M’SETTHAOTDUONLDOEGRYPIN
Discover the challenge
Design the solution
Deliver a better service
Develop a customer relationship
- 6-
BUILDING AND MAINTAINING PARTNERSHIPS
Blue chip client base with market leading customer rSettreontgiotnra(c9k8%re)caonrd hoifgdhelleiverlisngoforneperoamt bisuessinaensds growing services through a partnership model – proven ‘land and expand’ strategy
6 KEY ‘PILLARS’ OF THE BUSINESS
United Kingdom (HQ)
176
176
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Key facts and figures
£178m £10m Delivery & YE20B
Management
Supply chain Revenue YE20B EBITDA Acmcoaunnatg&empreonjet ct
Technology & data
Storage, fulfilment
& installation
development / 11 offices
0 0 60 60 116 116
215 215 174 174 00
82 82 123 123 162 162
208 208 73 73 112 112
231 231 230 230 230 230
151 151 164 164
13
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prototyping
GrowthGtreonGwdrtohswtrtehntdreGsnrdoswth GinrobwratnhdinabctriavnadtioaInmct&pivaeaImcxtitpopIenmarc&ipetanectxiatplemrieanrktieatlinmga(rek.egt.ing (e.g. moneypartnesrptprarrttengeirc quality complexity Compliance experience marketmingargkmreoatwirnkteghtigngrogwrodtwihfftehrentdiPdaifOifftfeSedr&eonstfetfiimalaitntie-edpdeorofflxmfpifanleinenreienxntepPcxeOepriSse)nraicensendrsecartenaesidtlaearrielnstedalonilorvekintrtavoinrlcomernenmeavtneirtnsotsnments
98%
Client retention
90%
Contracted revenue
- 4 -
3 3 3
3 3 3 3
3 3 3
Passionate Energetic Ambitious
3 3 3
Open Honest Committed
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900+ employees
UK | Europe | Rest of World Global Revenue split (location of invoicing)
UK headquartered
with a growing international footprint
until Mar 2019
3
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20.1 18.6
20.211.4
21.242.1
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282 282 95 95
199 199
+5.5% +5.5%
23.5 22.1
23.254.5
24.5
Highly capable, experienced and ambitious management team
Deliverable, low risk strategy with multiple growth drivers and further upside opportunities
controlled and cost effective solutions
A CULTUARNE DOFREATATIRNAICNTGINTAGL, ENNUTRTURING
900+ employees deliver effective design, content, social connectivity, data insight and branding Formalised wellbeing program in place for all employees
Culture built on values, opportunity and diversity
2015 2015 2016 2016 2017 2017 2018F 2018F 2019F 2019F US EUS(excl. UEUK)(excl.UUKK) UK
2013 20210314 20210415 20210516 20210617 20210718F 2021081F9F 2019F
£178m turnover in YE20B
£10m EBITDA in YE20B
New business wins; increase penetration of existing clients
Bolt-on M&A opportunities
- 12 -
+4.2% +4.2%
289 289
22 22 89 89
179 179
+3.1% +3.1%
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1 Includes creative, digital, radio, newspaper, magazines, cinema and outdoor
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17.9
17.198.6
Print marketing
EBITDA