Q1 2017 Financial Results Legal Disclaimer 2 The material in this - - PowerPoint PPT Presentation

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Q1 2017 Financial Results

Legal Disclaimer

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,

• utcomes 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

• ffer to subscribe for, acquire, purchase, dispose of or sell any shares of TMG.

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Agenda

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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

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

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The Marketing Group

The Marketing Group

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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

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Our network has offices in 8 countries serving a global market

Our client base is comprised of tier one brands

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Increasing synergy and collaboration

A period of internal focus

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• 2016 - an aggressive first year
• The third most acquisitive marketing group in 2016 – behind WPP and

Dentsu

• A global start-up, with all the challenges that can bring
• New team – new chapter
• An entirely new board – highly experienced in the field
• A refreshed strategy and a clean start
• A focus on building the infrastructure and increasing collaboration
• Agile systems and processes
• Real time collaboration

4 communities of practice

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4 communities of practice

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BRAND

Brand strategy Creative strategy Broadcast communications Integrated communications

INFLUENCE

PR Social Corporate affairs Word of Mouth Marketing

AMPLIFICATION

Content Sponsorship Promotions Events

SCIENCE

Data Insight Media Apps & Platforms

4 communities of practice

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BRAND

Channel Zero Addiction Advertising Brand Theatre DAE

INFLUENCE

Ranieri One9Ninety Black Marketing Reflexion

AMPLIFICATION

Nice & Polite Slingshot Creative Insurgence Wilkin Imagine

SCIENCE

Clickverta Marker Studio Lead Generation Skye Rain Makers

Q1 Revenue per community

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BRAND € 2,748,513 INFLUENCE € 774,627 AMPLIFICATION € 1,614,803 SCIENCE € 2,069,768

Financial Results for the Period Ending 31 March 2017

Summary Table

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Q4 16

€ millions Q1 2016

Revenue N/A EBITDA N/A EBITDA margin N/A Net profit N/A Net profit margin N/A Earnings per share1 N/A

€ millions Q1 2017

Revenue 7.2 EBITDA 0.12 EBITDA margin 1.7% EPS €0.00

Quarterly performance

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Revenue QoQ -0.8% EBITDA has seasonal fluctuations

5500 6000 6500 7000 7500 Q3 16 Q4 16 Q1 17

Q on Q Revenue

500 1000 1500 Q3 16 Q4 16 Q1 17

Q on Q EBITDA

Geographical Composition of 2017 Revenue

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20% 30% 14% 20% 16%

Geographical analysis of Revenue

Singapore USA UK Australia NZ

Balance Sheet Summary

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(€ ‘000)

1: Based on period end number of shares of 29,861,505 (27,796,252)

Cash and cash equivalents As at 31 March 2017 As at 31 Dec 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 share1 €2.47 € 2.56

Shares in The Marketing Group

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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

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• Continue to increase synergies and collaboration
• Support the expansion of profitable, core agencies
• Develop the 4 communities of complimentary services
• More high quality acquisitions
• Bigger acquisitions with lower risk profile and higher profits
• More focus on strategic fit and value creation
• Exciting new chapter
• New team, new strategy, new chapter
• Independent spirit – Global Scale

Q&A

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Thank you

Please visit www.marketinggroupplc.com for more information on The Marketing Group Investor and Media Contact: ir@marketinggroupplc.com