[PPT] - Positioned to capture the DX opportunity Half Year Results 2020 PowerPoint Presentation

SLIDE 1

Positioned to capture the DX

pportunity

Half Year Results 2020

SLIDE 2 PROPRIETARY AND CONFIDENTIAL

Agenda

2 Highlights New Positioning Financial Results Operational Update Progress on Strategic Priorities Questions

SLIDE 3

Half year highlights

Net revenue +3% including c. £2m of Spire

Digital

Innovation on track
Strategy restructuring showing improved

results

Communications, whilst profitable, taking

longer to turnaround. Further restructuring and strategic review underway

Continued positive revenue shift into

Innovation, US and Strategic sectors

Operating profit of £5.4m includes investments

setting foundation for growth ramping in H2 3 PROPRIETARY AND CONFIDENTIAL

Launched new global go-to-market brands

Advise, Create and Connect in another significant step towards our Connective integrated consultancy model

Spire Digital acquisition trading and integrating

well, validating acquisition model. Further Innovation acquisitions targeted

Strategic review underway of

underperforming and non-strategic areas of the business

On track for FY expectations; No impact from

COVID-19 to date, but continuing to assess risks Embedding of growth investments

SLIDE 4 PROPRIETARY AND CONFIDENTIAL

new positioning

4

SLIDE 5 Proprietary and Confidential

Purpose

At Kin+Carta, we’re not here to talk about changing the world. We’re here to make it work better. 5

SLIDE 6 Proprietary and Confidential Structured to attract the best digital talent in the world.

Kin+Carta is uniquely designed to address today’s challenges.

Digitally-native management Consultancy. Modern software engineering and emerging technology Studio. Data-driven Digital marketing Agency. Strategic Brands Venture Brands Pillar Strategy Innovation Communications 6

SLIDE 7 Proprietary and Confidential

Transformation takes a village. We call ours The Connective.

7

SLIDE 8 PROPRIETARY AND CONFIDENTIAL

financial results

8

SLIDE 9 PROPRIETARY AND CONFIDENTIAL

Financial highlights

9 Net revenue of £76.0m; up 3% including c.£2m of Spire, with attractive shift into strategic areas:

Innovation grew double-digits, now

comprising 60% of total net revenue

US 51% driven by Innovation growth
Strategic sector concentration higher

at 83% compared to 77%

Client longevity 80% of clients have 3

years or more tenure Acquired Spire Digital via equity placing of 15.3m shares Employees Across 11 Offices on 4 Continents NET REVENUE BY CAPABILITY NET REVENUE BY REGION * NET REVENUE BY SECTOR

1600

24% 60% 16% Strategy Innovation Communication 7% 42% 51% US UK Rest of World 17% 15% 10% 15% 13% 29% Financial Services Retail and Distribution Industrials and Agriculture Transportation Healthcare Non Strategic (30%) (54%) (16%) (44%) (48%) (8%) *PY net revenue is pro-rated from gross revenue

SLIDE 10 PROPRIETARY AND CONFIDENTIAL

Financial highlights

10 Net revenue of £76.0m; up 3% including c.£2m of Spire, with attractive shift into strategic areas:

Innovation grew double-digits, now

comprising 60% of total net revenue

US 51% driven by Innovation growth
Strategic sector concentration higher

at 83% compared to 77%

Client longevity 80% of clients have 3

years or more tenure Acquired Spire Digital via equity placing of 15.3m shares *PY net revenue is pro-rated from gross revenue Value Axis 0% 15% 30% 45% 60% Innovation % of Net revenue US % of Net revenue 51% 60% 46% 56% 40% 48% 27% 38% FY17 FY18 FY19 H120

SLIDE 11 PROPRIETARY AND CONFIDENTIAL

Longevity, stability and predictability

Our offerings and client base drive repeat business that underpins our long term growth 11 Client spend (%) 2018 2019 2020 0% 23% 45% 68% 90% Top30 Top100 Client Longevity less than 2 years 2 years or more 4 years or more 6 years or more Top 100 Clients 38 23 18 21 Revenue predictability (%) £'m 0.0 15.0 30.0 45.0 60.0 12 7 10 60 Total Revenue £’m Annual Clients 3+ Years Annual Clients 2+ Years Potential Annual/ Repeats Project 67% 11% 8% 14% (% of total revenue base)

SLIDE 12 PROPRIETARY AND CONFIDENTIAL

Financial summary

PBT of £5.4m includes

c.£2m of the previously

announced £3m growth investments - no change to £3m total for FY

Lower Communications

earnings Adjusting items up primarily due to the Spire acquisition, partially

ffset by a decrease in DB

pension scheme cost Net revenue continued to shift to Innovation and the US Spire c. £2m in net revenue INCOME STATEMENT £M HY 2020 HY 2019 % CHANGE Revenue 89.6 87.2 3% Net revenue* 76.0 73.6 3% Operating profit* 7.2 9.2 (22)% Profit before tax* 5.4 8.0 (33)% Adjusting items (11.3) (9.6)

Statutory loss before tax

(5.9) (1.6)

Earnings per share*

2.75p 4.21p (35)% Interim year dividend 0.65p 0.65p

*Adjusted Results, including IFRS16 effects:

c.£0.5m favorable OP c.£0.6m unfavorable interest expense to PBT 12

SLIDE 13 PROPRIETARY AND CONFIDENTIAL 13 *EBITDA adjusted for non-cash items

Cash flow

SLIDE 14 PROPRIETARY AND CONFIDENTIAL

Balance sheet

Pension surplus Leverage ratio (pre-IFRS basis) 1.80 fy20 fy21 £M HY 2020 FY 2019 Fixed Assets * 28.1 10.5 Goodwill and Intangibles 121.5 111.2 Working Capital 7.6 3.1 Pension 5.2 6.7 Lease liabilities * (23.2)

Income Taxes

(1.4) (2.0) Net Debt (39.5) (38.4) Deferred Tax (1.6) (1.3) Deferred Consideration (8.8) (2.0) Net Assets 87.9 88.0 fy22 * IFRS16 includes: £18.5m of fixed assets (£23.2m) Finance lease payable Net debt £39.5m (FY19 £38.4m) £6.3m £3.2m £5.9m Deferred consideration (Spire) £5.2m Loan Facility / Covenant £85m / 2.75x 14

SLIDE 15 PROPRIETARY AND CONFIDENTIAL

perational

updates

15

SLIDE 16

Strategy

Net revenue up 1% despite the anticipated disruption caused by

the restructuring necessary to create Kin + Carta Advise

Advise and Incite positive trends Q2 over Q1 in both the UK and

the US; pipelines on track to deliver 2H growth

Advise continuing to unlock sizeable Create and Connect

implementation programs 16 PROPRIETARY AND CONFIDENTIAL Our new strategic brand, Kin + Carta Advise, is a digitally-native management

consultancy. This offering targets our

clients’ CEO buyers. Our sector-focused, management consultants help our clients better understand the shifts in their market and how their products and services need to evolve.

SLIDE 17

Innovation

Net revenue up 14%, including c. £2m of Spire Digital
H1 organic growth hampered by several large UK projects

delayed into H2 due to Brexit (subsequently started post election)

US grew double digits
Improved pipeline compared to a year ago
Existing Solstice and TAB Innovation businesses combined to form

Kin + Carta Create. Spire joining at end of calendar year

Spire performing and integrating well
Over £5m in new pipeline created through partnership and

existing US sales channels

Utilising K+C Argentina delivery center for client work; utilising

Connective legal and finance services

Global engineering team swelled to over 800, unlocking new
pportunities in AI and Cloud for some of the largest companies

17 PROPRIETARY AND CONFIDENTIAL Our new strategic brand, Kin + Carta Create, is a next-generation modern software engineering studio. This

ffering targets our clients’ CIO buyers.

Our 800+ software engineers and designers utilise emerging technologies to create new products and services for

ur clients to bring to market.

SLIDE 18

Communications

Net revenue down 15%; further restructuring and strategic review

underway

Continue to move focus away from low value projects to higher

value MarTech platform work

Kin + Carta Connect created through restructure of AmazeRealise
Restructure includes new Managing Director, rebuilding sales

function, lowering cost base, moving targeted capabilities to Argentina, adding flexible workforce

Newly created Connect US business growing
Ventures business Edit executing similar aggressive restructuring

plan

Restructuring and improved backlog and go get position

expected to provide stabilisation in H2 18 PROPRIETARY AND CONFIDENTIAL Our new strategic brand, Kin + Carta Connect, is a data-driven marketing technology agency. This offering targets

ur clients’ CMO buyers.

Our digital marketing experts help our clients amplify their digital investments by finding new audiences and converting them into lifelong customers.

SLIDE 19 PROPRIETARY AND CONFIDENTIAL

ur

clients

19

SLIDE 20 Proprietary and Confidential FINANCIAL SERVICES RETAIL AND DISTRIBUTION TRANSPORTATION HEALTHCARE INDUSTRIALS AND AGRICULTURE New DX REMITS

Our expanding Blue Chip client base

20

SLIDE 21 +Sixth year of working with Ford's high profile Smart Mobility team +Recently began a multi-year program to build the all new Fleet Commercial Services driver app +The app utilises telemetry data from the vehicles to improve the experience for drivers and fleet managers +This seven figure Create UK product development project has led to a Create US modernisation opportunity, based

ut of Detroit

21 PROPRIETARY AND CONFIDENTIAL

Telematics and machine learning

ptimize fmeet management for Ford

Key Partners:

SLIDE 22 +Global quick serve restaurant’s existing digital ordering channels (kiosk, mobile) take more effort than traditional alternatives +Project involves automating the drive-thru experience using AI +Partnering with Google leveraging their DialogFlow natural language platform (Google Assistant’s backbone) +Currently going to market with Google on other voice enabled use cases 22 PROPRIETARY AND CONFIDENTIAL

Using AI to voice enable the quick serve drive-thru experience

Key Partners:

SLIDE 23 PROPRIETARY AND CONFIDENTIAL

progress against strategic priorities

23

SLIDE 24 PROPRIETARY AND CONFIDENTIAL

Growth

24 We will accelerate growth through the continuous optimisation of a highly measurable, integrated and scalable demand generation machine. KEY KPI: HY Net revenue of

£76m

STRATEGIC PRIORITY 01 Optimize central demand around our key sectors Scale partnership function in both the US and the UK Increase central demand net revenue contribution by > 50%. HY20 PROGRESS FY20 GOALS Scaling of partnership function delivering £3.25Mn in wins and £11Mn in pipeline across the US and UK Google partnership progressing well across AI, Search and Cloud service lines Consolidated marketing muscle of Solstice, TAB and AmazeRealise behind Kin + Carta core brand New central sales function delivering over £5m in backlog, £23m in pipeline, 400 leads in first half. (+3%)

SLIDE 25 PROPRIETARY AND CONFIDENTIAL

Proposition

25 We will create and evolve a market defining set of sector-focused, technology-led business transformation offerings. KEY KPI: Gross Margin

48.5%

STRATEGIC PRIORITY 02 Continue to invest in the evolution of our holistic DX proposition Further simplify our brands to make it easier for clients to engage HY20 PROGRESS FY20 GOALS Launched the new www.kinandcarta.com repositioning firm around a more fluid, end to end, software engineering centric proposition This has led to more cross-sell wins including a seven figure K+C Connect US eCommerce win for an existing strategic K+C Create US agriculture client Sector focus has continued to gain traction, particularly with Healthcare, a sector just beginning it’s DX journey, growing from 8% to 15% of net revenue. (49.0%)

SLIDE 26 PROPRIETARY AND CONFIDENTIAL

People

26 We will create an industry leading employee experience with a focus on the growth potential of our talent and a shared commitment to a triple bottom- line (profits, people and planet). KEY KPI: Employee Net Promoter Score (updated at year end) STRATEGIC PRIORITY 03 Certify first four specialisms as B Corps Rollout central HR system across the Connective Demonstrate continued meaningful increase in eNPS through coordinated employee experience initiatives FY20 GOALS HY20 PROGRESS B Corp Certification of K+C Advise, Create and Incite on track for this fiscal year Early returns being realized through upticks in employee engagement and positive qualitative feedback on talent attraction wins 27

SLIDE 27 PROPRIETARY AND CONFIDENTIAL

People

27 We will create an industry leading employee experience with a focus on the growth potential of our talent and a shared commitment to a triple bottom- line (profits, people and planet). KEY KPI: Employee Net Promoter Score (updated at year end) 27 STRATEGIC PRIORITY 03

SLIDE 28 PROPRIETARY AND CONFIDENTIAL

Platform

We will build an operational platform made up of best-in-class operational systems and seamless shared services. KEY KPI: Operating Margin

n Net Revenue

9%

STRATEGIC PRIORITY 04 c.£2m of the £3m growth investments On track to complete the roll out of

ur PSA (professional service

automation) and CRM systems by the end of the calendar year New HRIS system nearing the final stages of evaluation Spire to be fully integrated onto this Connective operating platform in FY21 Increased leverage of K+C

perations in Argentina with Create

UK, Connect UK and the Central Office. HY20 PROGRESS FY20 GOALS Complete roll out FinancialForce and SalesForce CRM Rollout central HRIS system Expand our shared services platform across finance, HR, IT and legal, to ensure we are taking advantage of operational gearing as we scale, while allowing our specialisms to focus on what makes them distinctly unique A common platform and lower cost operating center will ensure we are taking advantage of operational gearing as we scale. (12%) 28

SLIDE 29 PROPRIETARY AND CONFIDENTIAL

Expansion

We will execute a purposeful and intelligent expansion into new regions domestically and internationally. KEY KPI: US & Rest of World

60%

STRATEGIC PRIORITY 05 Increased attention on acquisition opportunities for DX services firms in the US and Europe, with a near term focus

n unlocking growth in the

western and southern regions

f the United States.

FY20 GOALS HY20 PROGRESS Successfully completed the acquisition of Spire Digital, leading our expansion into the western United States Seeing growth in our Connect US and Create Edinburgh investments New potential acquisitions in new regions of the US and Europe targeted (54%) 29

SLIDE 30

Summary

Shape of revenue changing in line with strategic intent (US, Innovation, key sectors) Launch of Advise, Create and Connect aligning go to market muscle behind one powerful brand Strategy and Innovation on track with further restructuring in Communications driving stabilisation in H2 Spire Digital acquisition proving out regional expansion strategy Strategic priorities on track with DX market continuing to gain steam 30 PROPRIETARY AND CONFIDENTIAL

Outlook

Restructuring, improved positioning, growth investments and a stronger pipeline give the Board confjdence in an improved second half Trading at the start of the second half is in line with expectations, with optimism tempered by uncertainties caused by the efgects of COVID-19 Currently expect to meet expectations for the year, as we have seen no impact from COVID-19 to date, but are maintaining a careful watch on external risks that could cause deterioration in our markets