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FINAL RESULTS FOR THE YEAR ENDING 31 DECEMBER 2012

FINAL RESULTS FOR THE YEAR ENDING 31 DECEMBER 2012. MARCH 2013. INTRODUCTION. CELLO – AN INTRODUCTION. We supply market research, consulting, and marketing support services to a blue chip client list in the pharmaceutical and other high margin client sectors

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FINAL RESULTS FOR THE YEAR ENDING 31 DECEMBER 2012

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  1. FINAL RESULTS FOR THE YEAR ENDING 31 DECEMBER 2012 MARCH 2013

  2. INTRODUCTION

  3. CELLO – AN INTRODUCTION We supply market research, consulting, and marketing support services to a blue chip client list in the pharmaceutical and other high margin client sectors Global infrastructure in Europe, USA and Asia High quality senior management team across Health and Consumer divisions Positioned at the advisory, value added end of the supply spectrum Best in class services and digital products (e.g. Pulsar, eVillage)

  4. RESULTS

  5. HIGHLIGHTS Gross profit up 5.3% to £65.1m (2011: £61.8m) Headline profit before tax flat at £7.0m (2011: £7.1m) Headline operating margin 12.1% (2011: 12.6%) Gross profit in Cello Health up 7.2% to £31.3m (2011: £29.2m) Like-for-like gross profit in Cello Health up 2.6% Headline operating margins in Cello Health 20.8% (2011: 20.9%) Second half profit recovery in Cello Consumer Full year dividend per share up 16.3% to 2.00p (2011: 1.72p) Net debt £8.7m (2011: £7.7m) Acquisition of Mash in January 2013

  6. SEGMENTAL ANALYSIS Like-for-like gross profit growth - Health 2.6%; Consumer 0.6%

  7. INCOME STATEMENT

  8. INVESTMENT ITEMS

  9. RESTRUCTURING ITEMS

  10. BALANCE SHEET

  11. NET DEBT RECONCILIATION AND CASH FLOW

  12. 7 YEAR RECORD – DEGEARING AND DIVIDEND GROWTH

  13. OPERATIONAL REVIEW

  14. CELLO HEALTH 305 professionals Nine of top ten global pharmaceutical companies are clients Significant international reach (London, New York, Philadelphia) Strong habitual spending patterns from global clients Acquisition of Mash Health in January 2013

  15. CELLO HEALTH GROWTH % of Group Revenues from Cello Health % of Group revenue outside the UK

  16. CELLO HEALTH CLIENT BASE • 49% of gross profit, 68% of operating profit • 9 of top 10 pharma • 22 of top 25 pharma • 31 of top 50 pharma • Excellent client continuity

  17. CELLO HEALTH CAPABILITIES Full Year 2012 Gross Profits

  18. CELLO HEALTH – DEVELOPMENTS IN 2012 Formation of Cello Health Board Establishment of centrally funded new business team Significant investment in new geographies and new offerings

  19. ORGANIC GROWTH INITIATIVES FOR 2012/13

  20. CELLO HEALTH PLANNED DEVELOPMENTS IN 2013 Integrated client facing brand structure First full year of centralised new business activity Continued support of investment initiatives Additional US expansion Expansion in Consumer Health with acquisition of Mash

  21. CONTINUED CONSOLIDATION IN HEALTHCARE MARKETING SERVICES (backed by Symphony Technology Group) (backed by Thomas H Lee Partners) (backed by TPG Capital)

  22. CELLO CONSUMER 51% of gross profit; 32% of operating profit 450 Professionals Blue chip multinational client base in FMCG, mobile telephony, gaming, retail, financial services and charities Largest client = 4% of gross profit Presence in UK, San Francisco, Los Angeles, New York, Hong Kong and Singapore Cutting edge social media tools Cutting edge web marketing capability

  23. CELLO CONSUMER CAPABILITIES Full Year 2012 Gross Profits

  24. CELLO CONSUMER – DEVELOPMENTS IN 2012 Formation of integrated board structure Consolidation of sub-brands into four primary ‘engines’ – Leith Group, Bright Group, Face and 2CV Ongoing reduction in surplus headcount and excess space Investment in digital social media and software capabilities – Pulsar and Communities tools Overseas push – USA and Asia

  25. CELLO CONSUMER PLANNED DEVELOPMENTS IN 2013 • Rebranding of Cello Consumer as client facing brand • Focus on digital and social media front end • Continued investment in existing and new overseas offices • Continued focus on margin improvement

  26. SUMMARY

  27. SUMMARY AND OUTLOOK FOR 2013

  28. THANK YOU

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