Page 2 - Project Spring Teaser Document

Contents * Click on the individual image to go directly to a page, click on Make More Possible on each page to return to contents. AttraActtirvaectuivnedeurnlydienrglyminagrmkeatrdkyentadmynicasm...ics... Attractive underlying market dynamics... Key facts and figures A compelling investment opportunity -5 - 0 60 116 215 174 0 82 123 162 208 73 112 231 230 230 151 164 176 GlobGalGloablodablvaedlrtavisedirvntiegsrintmigsaimnrkgaermkt1ea,tr21k,02e10t151,5-2-11091F5(-$1b9nF)) ($bn) K Value foVr alue fsotDrriagteitgailcsDtDrigiagtieittRagalielcliabiliRtye/liabilRityed/ ucinRgeducCionmg pliaCnocme pliaCnucsetomeCrustomer moneyVmamlouneefyoprartnesrtprarttengeircqualiRtyeqliquauabalililitcitytyoym/plecRxociemtoydmpuplceleixnxigtity CompliaenxcpeerieCxneupcxseptroeiermineencrcee marketmingargkmreoatwirnkteghtigngrogwroPdtwiOhfftehSre&nstPdiPdeaiOfOiffmtfeSeidr&-e&ponsetfestfirimaleamitnmtie-eaedpidn-eoperofflxmenfpifrtanlemiPnenreaiOenxSntepePcx)enOepratiSsesP)nraiOrcenesenSdtrsaec)artielnaeaesidtslraesarrielnesltoedtalaonilorikvlekeintrtoavosoinrlclomerneonmeakvtneteietrtnosotsncmreeantets UK adUvKerUtaiKsdivnaedgrvtmeisraitnirsgkinemgt eamxrakprektenetdxeitpxuperenn3d,dit2iut0urer1e3,-,2120901F13-(-£119b9FnF()£(b£nb)n) 279 279 22829 20 20 86 86 89 173 173 179 22829 89 90 179 188 262 262 282 282 +4.2% +4.2% 320532 +3.14% +3.14% 322 322 1. 3. 11 offices 25 sites £10m YE20B EBITDA 13% 2% 85% UK | Europe | Rest of World Global Revenue split (location of invoicing) 17% revenue CAGR from YE15-YE20B 4. A leading international marketing communications specialist with an integrated end-to-end solutions led approach Highly capable, experienced and ambitious management team 2. 5. Attractive underlying dynamics in the global marketing, communications and sourcing space 6. Long-standing, loyal and diverse blue chip client base with a proven ability to ‘land and expand’ 0 60 116 215 174 0 82 123 162 208 73 112 231 230 230 151 164 176 £178m YE20B Revenue 900+ employees partner “We we“mWr“eoWeriemwowpenrerelreisensieimembdparwrseistdhsecAdoPmwS’imitdhuigAnAiiPtPcaSalt’ciodanipgsai”tbailictciaeapspa...abbailisiltitweiese...so...fafaesrwoeueroocffffuesertroomuur-ercMrsucasruktesotminogmeMrseanrasger more oWnmlienoesreabwaosnAeliPdneScobamassmaeudsntcricoaamtteimognuiscn”ipcatriotnse”r and a digital native, th-Meayrk’veetinign-Mtaraorkndeatguinecgr eMdanager “We saewB“WAoPeoSkssawasnAadPsmStraiactserogasisciteprasatrewtgnhiecicr hpaanwrdtanasedqr iuagnitdealaindnaitogivivtea,tl itnvh-aeHet”yeiv’avede,-oitnHfh-etMHerayeoda’avdrokdefueCcotioinfenmtMdgmr,oauWdrnkiucWeacttiFienondgs, SWerWvicFes eBookOpsreuaoBrnfiobdloeumkdpsigcriearnonttsdjirotmebmsisca...wroihntsi’csiuthencsdwrieatwisrchpaiqcrluhefisotwesrauiusnresnq”,oubvituaetiIvncen”aonv’-atHtesivaeede”ouf Cs-Honemaomdtuodn-fiScoCeaointnimiognmr sPutrShnoeicecuravrhteiicomiengseshnSt-Meravnicaegser “Our bu“Ad“POgSeutrsdboruedmsgaoeiuntsrursnedmceaurirnperuesnscdsaeunrenp,irnbegus,stcuIrcea,anbt’iutvtseIew-ceSaoeunrns’kitonasroenP-tedSrodeusconstuiuronedrgmoPioterhodnienctoucMihrnleiaugmndhatei-hgnpetgrMo,hefBiaimglnBehaCa-gipleraro,nfBidlBeC printjowbpesrb...institj’eosbHcsTr...iMtiicLta’...slfwcorerituiucsa”eldfotroudso”scanningin-housea-SnedniohraPdr-oS2ceudnreieomrsePignrotncMeuarensmabgeeunrtMwaenager “wAePbSsidtSfeo“weuAHrsencPTebdoSMAsuAiLrdt/Pe...osWSeAHscRwhTuCoaeM,rudGeuLroshs...sueicpegdMachwn,uteoeSnrmrediuenitoshsngecsd,rdsacPcnatiroane,pndiaDniaotMngibvgAs,i,elciIciPntawrAi-enehBosnaoeritlanukliwvngseaedtinhnweawd-rnh,oaOsdorsBtukuhRms,adaeIMdnoioaFdr2,enNisndIcEtceouShlsRuasdi,gtdiOoneix2nefffoignrdedsceceEblstcumiuiovgdntaenoiwi”neml-egriHacssene,abdEmduxoptafewiMrltearnkedting Supplier base Likely to benefit integrated, multi-service providers with ScounpspolieliScdrouabnpctaiosposnolneiseloidrlidabatatioisoneLdikgeitalyl,topLddrbikgingeititntalayeln,ftiopdptribfinunetltefnaiaglnemnrdfaidetftuneifnlutdfitlcle,fmiamglmeprunaetltbtnecii-tdalsipct,eiaemrbpsvuiialciltbteiei-lspiterieorsvicderpsrowviitdhers with Control over CustomCeCrussptormemferrsssppurerpfepfrleiserurspsuptlphieparlstiecthrasantthcparnot vpciradonveidpcerocnvotirndoterlocl ontrol CodnetrliovlCeoroydvdnetlrirlvioveleryoryveracross tahatcoecr-roeownshdsotvthlaheleumwewhacohrhlkoeaelienmtinamrgkaesrtkeinergvtisncegervsiceserpsveiscpetersuctmsrupmaencadtnrudemnendad-n- d end- Print marketitnog-end vtaoDl-iugeeintadcl hivsagilnruoewicnhga; pinrint remains a vital marketing and Print mPariknertetsminiligaenrkcetinDcguigsittoaml iesDccrugiugesrsixotoapwmleiineresigrerge;nexrpcxoprepewinrecitneroirngemec;nmepccoraeioninmcetsoprnmeoatmnfpvoeoainrtnaitnaeflsomlnaratarafgvloraekirtreagnatleiunmlnamgurabgmareknbredntoriunofmfgbaenrdof resilienrcesilience privateappnrridivaptuebalnincddsppeuucbtlbioclircsfeisrcmetocsrtofirmfisrms Economic growth Outlook for GDP growth supports an increase in global 320532 188 195 95 90 93 93 95 195 199 199 2015 2015 2016 2016 2017 2017 2018F 2018F 2019F 2019F US EUS(excl. UEUK)(excl.UUKK) UK ey KpeKuyrecpyhuaprcsuhirnacgshinacgsriitncergritiaecriiateria GrowthGtreonwdths trends ImpactImpact +5.5% +5.5% 23.5 21.242.1 22.1 23.254.5 24.5 +5.3% +5.3% 17.9 2013 17.198.6 20210314 18.260.1 20210415 20.211.4 20210516 20210617 20210718F 2021081F9F 2019F Growth trends ExperieEnxEtipxapelerriientiallGrowth GiGnrobwrathnhdininabbcratrinavdnadaticoatnicvat&itvioeanxtipo&enerx&iepnertxieapnletmiraielamnrktaiearktlienmtginag(rek(e.eg.tg.in. g (e.g. Impact Strong financial profile, track record of organic growth and well-invested infrastructure Deliverable, low-risk strategy with multiple growth drivers (both organic and inorganic) 50+ years’ experience 98% Client retention 90% Contracted revenue ISO14001 - Environmental Man- agement System ISO27001 - Information Security Certifications ISO22301 - Business Continuity Certification ISO9001 - Quality Certification | PCI DSS Accredited UK headquartered with a growing international footprint until Mar 2019 -4 - 1 2 3 Includ1esPOcIrSnecsaliutgivdneaeg,sedciagrenitdatldi,visreap,dladiyoigs,itnael,wrsapdaiop,enr,emwsapgapzeinr,esm, acginaezminaesa,ncdinoeumtdaoaonr d outdoor -7 7 - 7 Value2s anVdagluroewsthanidn 2g0ro1w5t-h16inn2o0t1c5o-m16panroatbcleomtop2a0ra1b7leontowa2r0d1s7goivnewnarddesclginiveeindGeBcPlin/UeSinDGBP/USD Includ3es cIrnecalutivde,sdcigreitatli,vdei,redcigtimtala,ild,ipreroctmmoatioil,nparlolemaoflteiotsnalnldeabfrleotcshaunredsb,rioncsheurtrse,sm, ianrskerttisn,gmcoalrlkaetetirnagl,cPoOllaStesriagln,aPgOeSansidgndaisgpelaaynsd displays Attractive underlying market dynamics EconomEicogn&robmwusitcihnegsrsowOtuhtlookOmfouartrlGkoeoDtkinPgfogsrproGewnDdtPhinsgtuhropewpmotehrdtsiuampnpteionrrmctsreanseinicnregalosbeailn global found AiN1noPtfeotrISenvuscienhluwdadsed,AMs hPcarinSega-ahHgthieveamera,dedenihgntoiidtngfa-flhDoH,creaomedrpcaiouadtei,ombnonidelfiwtnDcisetaposMapcpuaembnr, iadmeligtnawiegetamasMzsienaenmnstad,o&cgriwne-LeMmamocsageoarinmskasntetoid&tceironsfe-Lfu,MgetoCcdcaMgortroioiasksvrwetnteitcaen”insgfCf,ge-CorHcM,mrteRoiavmwndoeanye”oagrfCcleM-ioLraHa,molerRkSnamedoetoiyeronvanrfgiclcMiLeaolsrkSnedetoirnvngices & busin&esbsusiness marketinmgasrkpetnindginsptheendmiendtihuemmterdmium term SNoutersce A23ASN/oWVuItnearAcslcluRuedCsAe,asAGnc/dWroeguaArtopiRvwMeCt,h,dSGiingmri2toai0tulh1,p5edM-ri1rse6,PcSnitromat,iactDhiol,emMprprsAoaP,mriaIrPoabtA,lieoDnBtoaMel2All0ew,a1e7IflPteohAtneswrBa,aneOrdllBwsbRregoit,vcheIheMnur,rFdeO,esc,NBilniIRnEse,eSrIintRMsG,FmOB, PaNx/rfkIoUEerStdSiDnREg,cOonlxlaofotmerdriaclEs, ,cEonxpoemritcisn,teErxvpiewrtsi,nMtearvniaegwesm, Menatniangfoermeantitoinformation Learn more APS at a glance Key facts and figures A compelling investment opportunity FollowiFngollpoowinintsg /paorinetass/toarbeeascotov • Idea•lly Ipdoesaitlliyonpeodsitoioncaepditaolicsaep • Outs• ouOrcuintsgocuhrcairnagctcehraisrtaicste/rids • Glob•al Gsulombmalasruymmaarkreytmtraernkdes • Prin•t trePnridnst trends  Print bePcroinmt ibnegcmomorinegre  IndicatiIonndsiciantitohnesUinKthto • Key•maKrekyetmingartkrentindgs trends  TechnoTloegcyhnisoldorgivyinisgdin provideprsroviders  ImportaImncpeoortfaannceooutfsao  Whilst dWighitilasltidsigirtoawl isng dependinegpeondtihnegirocnutsh • Furt•herFcuortnhseorlicdoantisoonliodfamtioanrkoef • I n d i c • a t i I o n n d s i c i a n t i t o h n e s U i n K t h t o e f Ua v K o u t o r • With•thWemithotvheetomonvleinteo,obnrilcinkes experieenxcpee–riebnecne–fitsbeAnPeSfitassA  E.g.strEo.ngg. rsetrtoanilginrveetasit • Glob•al Gsoloubrcailnsgomuracrinkgetmexaprkeectt  StrongSptiproenlignepipneElinuero  ConsidCeroanbsleideproatebnletiaplo • Com•binCeodmcbhiannendeclhsatrnantegl sytwrait • TO B• ETUOPDBEATUEPDDFAOTELLDOFWOILN Innovatve technology underpinning the services and solutions 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. 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 Modernizing Architecture Component Library Highly capable, experienced and ambitious management team Allan Doyle Koen Luijten John Nodding Managing Director (Scotland) Managing Director/IT Director Executive Director - 11 - Deliverable, low risk strategy with multiple growth drivers and further upside opportunities 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. 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 about and observe all applicable legal and regulatory requirements. This document does not constitute an offer to sell or an invitation to purchase securities in any jurisdiction. This document is being distributed on the basis that each person in the United Kingdom to whom it is issued is reasonably believed to be such a person 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. Rothschild & Co, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting for APS and no one else in connection with the potential sale of the issued share capital of APS and will not be responsible to any person other than APS for providing protections afforded to clients of Rothschild & Co nor for providing advice in relation to the potential sale of the issued share capital of APS. - 13 - 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 £178m turnover in YE20B £10m EBITDA in YE20B New business wins; increase penetration of existing clients Bolt-on M&A opportunities Proposition and service development Geographic expansion Sigonpipfiocartnutnuitpiesside Technology roadmap Financial efficiencies Operational efficiencies Base plan John Holmes Executive Director Joined APS Group in 2010 Rcleiesnptorneslaibtiloenfsohrimpsanaginganumberofkey Rpreosposnitsioibnle for Sales, Marketing and APS RSuepspolynCsihbaleinfor the overall strategy for Direct Senior responsibility for APS US Rapid Application Development Move to (Hybrid) Cloud CDoemsigmnuonnicaet,ioanys fMoramnagt ienr any format out OyordueWrraeosbrsedStoshwonpnlloinaed Store Profiler Cololepctitm, cisoentProOlSand APS’ existing geographic footprint (office locations) Today YE20 Delivering through - Market Operations Suite Innovative 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 Deliverable, low risk strategy with multiple growth drivers and further upside opportunities Disclaimer localMiseuedldteiicdamhoPapcunulanbmteleielsanhntesdrfrom WAdodriknflgoinwtsegration Asset Manager Staolrdaigeitafal acsilsiteytfsor Joined APS Group in 2004 M(EdaninabguersghopaenrdatGiolansgaocwro) ss Scotland AinlsLonlodokns after key financial services accounts 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 Jreolianted4uAPS in 2010 following the acquisition of Responsible for group wide IT operations Fsyosctuesmosn development of bespoke software Kim Naylor Executive Director Joined APS Group in 2009 Rreelastpionshibiples for managing a number of key client RthespUoKngsiobvlerfnomr keenyt satcackoeuhnotld(CeCr Sre)lationships for Rsuepsployncshibalien for the overall strategy for indirect Joined APS Group in 2010 RthespUoKnsible for all European business outside RLoenspdons/ibSleoufothr arellgpiroivnate sector clients in the 3 Successful and innovative management team with key industry, client and brand relationships 3 Track record of delivery – proven capabilities in growing businesses and capitalising on market and customer trends 3 Driving the key principles of the business and a culture built on values, opportunity and diversity 3 Backed by a strong second tier team Operational excellence Brand Management Enabling Services and Solutions Digital Transformation byoeutwr peeronctehsesemsodules and gBSurhidaanerdleinbPerosarnatandld asstsaeketshwolidtherasll CThuestcoomrerofDyaotuar byouusinuensiqsutehat makes MeBaupsueinrefeosarsmndIannatecnlealyidglyaestnaeckeey OMpeanratgioenrs caMmoCpnaiimtgonrpsyaoaigunnrdmTpraraorckmkeeotirtniogns Maacanrnodassgueaplplpcrloyhdacunhcnateionlns - 8- - 12 - EBITDA