Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Overview Presentation Kin+Carta 1.23.20
Proprietary and Confidential
+ Seizing the Opportunity
+ Structured for Growth
+ Winning Formula
+ Experience Tour
Agenda
Proprietary and Confidential
Sources: Consultancy.UK, IDC, Markets&Markets, Gartner, HarvardBusinessReview, Altimeter, eMarketer, IDC, Statista, Technavio, Business insider, Zinnov Research & Analytics
18.5% per year
Digital transformation expenditures are expected to continue to increase at a CAGR of 18.5% through 2024
$44Bn SERVICES
The global digital transformation consulting market is already $44Bn, doubling in size since 2016
$200Bn
TOTAL
of F500 CEOs have begun digital transformations, mainly focused on growth
$462Bn
42%
Every company at scale needs help in transforming their organization to deliver on the promise that digital brings
The DX market is huge and growing
Proprietary and Confidential
PurposeAt Kin+Carta, we’re not here to talk about changing the world. We’re here to make it work better.
Proprietary and Confidential
Create Digital Twins
Identify and digitize high value, inefficient, analog processes, products and business models.
Launch Digital Ventures
Design, build and run new digital products, services and experiences using the latest technologies.
Modernize the Enterprise
Overhaul your legacy technologies, maximize the ROI of your current data and tech stack and advance your ways of working.
The Opportunities:
Eliminate internal and external friction.
Catch Up
Maintain market leadership or leapfrog competition by growing your offering.
Get Ahead
Overcome legacy constraints and accelerate innovation.
Evolve The Base
The most pressing challenges on the road to becoming a digital business:
Proprietary and Confidential
+Partnered with PE firm Cinven to help transform newly acquired JLA from analog to digital business
+Kin + Carta Advise set DX strategy including target operating models, data strategy and digital product strategy
+K+C Create and Connect pillars on the path to implementing transformation program
+Articulates opportunity for private equity to increase business valuation multiples by applying DX
Key Partners:
Digital Twin: A value multiplier for PE
Proprietary and Confidential
Digital Ventures: Using AI to predict crop yields for Corteva
+$14Bn revenue agriscience business spun out of Dow Dupont
+Engaged Kin + Carta in a multi-year program to build suite of tools for employees and growers for managing crops
+Recent work has evolved into using our advanced machine learning and decision intelligence capabilities
+Most recent launch of Pioneer Seeds provides ability to estimate crop yields by taking pictures of ears of corn, improving accuracy and efficiency by over 400%
CORN YIELD
ESTIMATOR
EXCELLENT 8BU/ACRE
YIELD ESTIMATE
WITH EXCELLENT GROWING CONDITIONS
OR HEAVY KERNEL GRAIN**
Key Partners:
Proprietary and Confidential
Modernize the Enterprise: Thwarting the Amazon effect for Gordon Food Service
+$15Bn revenue commercial food distributor CEO sponsored digital transformation after Amazon-Whole Foods acquisition +Kin + Carta helped create a next-generation global B2B ordering experience in < 9 months
+Increased speed of digital software releases from 4 times/year to 11 times/day
Key Partners:
Proprietary and Confidential
Global Blue Chip Base of 360 Active Clients
FINANCIAL SERVICES
RETAIL AND DISTRIBUTION
TRANSPORTATION HEALTHCARE INDUSTRIALS AND AGRICULTURE
NEW
DX
RE
MIT
S
Proprietary and Confidential
EMPLOYEES ACROSS 11 OFFICES ON 4 CONTINENTS
NET REVENUE BY CAPABILITY NET REVENUE BY REGION NET REVENUE BY SECTOR
1500
28%
56%
16%
StrategyInnovationCommunication
7%
47%
46%
USUKRest of World
19%
9%
8%
23%
12%
29%
Financial ServicesRetail and DistributionIndustrials and AgricultureTransportationHealthcareOther
(35%)
(48%)
(17%)(40%)
(52%)
(8%)
+ Net revenue of £148.0m; up 2% on like-for-like working days
+ Double-digit growth in Innovation which now comprises 56% of group net revenue
+ 13% Adjusted Operating Margin of net revenue, inclusive of incremental £3m growth investment
+ Net debt of £38.4m (FY18 £26m); Leverage ratio 1.68x (FY18 1.1x)
FY2019 Financial Highlights & Overview*
*Excludes Spire acquisition completed Nov 22nd, with 2018 revenue and operating profit of $9.4m and $1.3m respectively
Proprietary and Confidential
+ Growth is Innovation led with Strategy and Communications improving
+ Investments driving higher net revenue; accelerating into H2 FY20
+ Double digit net revenue growth FY20
+ Double digit operating margins FY20
+ Both net revenue growth and operating margin increase into low teens over the medium term
+ Net debt 1-2x EBITDA depending on opportunities
NET REVENUE GROWTH * 10-12%
FY20
OPERATING MARGIN * 12-13%
MEDIUM TERM
12-14%
13-14%
NET DEBT TO EBITDA* 1-2X
FY20 and future periods include a favourable £1.0m impact, or +50 bps, to OM%
related to the adoption of IFRS16, offset by higher interest expense of £1.1m
1.5-1.75X
Outlook* October 2, 2019
*Adjusted results from continuing operationsExcludes Spire acquisition completed Nov 22nd, with 2018 revenue and operating profit of $9.4m and $1.3m respectively
Proprietary and Confidential 12
Digital talent is tribal. Specialisms should be fostered not diluted.
Specialisms Should be Celebrated.
Magic happens when you unite disparate disciplines, tools and perspectives.
Connections Deliver Outcomes.
Enemy is Apathy. Demonstrating > Debating. Make it Happen.
Courage Above all.
These three things drive everything we do:
Proprietary and Confidential
Structured to attract the best digital talent in the world.
Digitally-native management Consultancy.
Modern software engineering and emerging technology Studio.
Data-driven Digital marketing Agency.
Value Creation
Digital Maturity
Enriched Culture and Capabilities
Digital Service Design
Digital Product Development
Cloud Modernization
MarTech Platform Engineering
Engineered Experiences
Customer Data
Best-in Class Tribes. Focused Capabilities.
Kin+Carta is uniquely designed to address today’s challenges.
Proprietary and Confidential
Organized to accelerate speed to value and Make it Happen.
Make it Clear Make it Real Make it Live
Kin+Carta is uniquely designed to address today’s challenges.
Proprietary and Confidential
San Francisco
Chicago
New York
Buenos Aires
London
Singapore
Access to 1,600+ digital specialists across four continents.
Denver
Amsterdam
Proprietary and Confidential
Transformation takes a village. We call ours The Connective.
Proprietary and Confidential
Kin + Carta leads with a blend of strategists and builders.
Compared with other vendors we evaluated, Kin + Carta has higher adoption and quality of design, artificial intelligence, and technology services.
Kin + Carta scores well in strategy factors, including client co-innovation and employee experience.
17
“ KIN + CARTA
Forrester Names Kin + Carta a Leader
Proprietary and Confidential
GLOBAL CLOUD PARTNERSAdvanced Consulting Partners with Pivotal and Amazon Web Services.
GLOBAL AI AND CONVERSATIONAL UX PARTNERS
GLOBAL PLATFORM PARTNERS
GLOBAL DATA PARTNERS
Advanced Partners with Amazon Alexa.
Connective Ecosystem
Proprietary and Confidential
BHAG (Big Hairy Audacious Goals)
To be one of the world’s best places to work
To be one of the world’s first triple-bottom-line public companies
To build the world’s first Connective and quintuple the size of the business01
02
03
Proprietary and Confidential 20
Winning Formula
Proprietary and Confidential
CLIENT SPEND (%)
0%
20%
40%
60%
80%
2016 2017 2018 2019
Top10 Top20 Top30 Top100
CLIENT LONGEVITY
less than 2 years
2 years or more
4 years or more
6 years or more
Top 100 Clients
33
25
20
22
REVENUE PREDICTABILITY (%)
£'m
0.0
25.0
50.0
75.0
100.0
1837
20
97
Total Revenue £’m
Annual Clients 3+ Years
Annual Clients 2+ Years
Potential Annual/ Repeats
Project
56%
12%
22%
10%
(% of total revenue base)
Our client base has shown to award us repeat business and enable our long term growth
Longevity, Stability and Predictability
Proprietary and Confidential
Demand Engine Organizational Structure:
Announcement
Sales
Inside Sales
Demand Qualification
Marketing Partnerships
Leadership
Clear Remits. Collaborative Alignment. Unified Goals.
Demand Creation
Demand Conversion
Demand ClosingGrowth Operations
Proprietary and Confidential
Demand G
eneration
Account Based Marketing
Tier 2
Tier 1
80-90% of Market
10-20%
Enga
ged
Accou
nts
Account Qualification
Demand Manager and Sales
Sale
s ow
n: e
ntire
tea
m s
uppo
rts
Clos
ed W
on
AOM
App
lied
+ Clear ICP (Ideal Client Profile) is applied using verticals, firmographics, intent data and motivation.
+ Highly Integrated Brand, launch or growth campaigns are executed using the 80/20 rule.
+ Initial Qualification step screens out projects as we look for programs.
+ All hands on deck mentality applied to “engaged accounts” in an effort to “build the buyers table”
and accelerate the deal.
+ Baseline selling processing is rigorously applied to further qualify the opportunities with impact and
leverage.
+ Account Operating Model (AOM) grows the
account through upsell and cross-sell.
Events
Inside Sales
Partners
SEA/SEO
Inside Sales
Partners
Sales
Content
Social
Display Ads
Intent Data
Direct Mail
Custom Events and Dinners
“Spotlight” Marketing
Demand Engine Get ‘em, Grow ‘em, Keep ‘em
Proprietary and Confidential
+Bigger initial deal size
+Longer running programs with greater lifetime value
+Greater pipeline velocity
Demand Engine Get ‘em, Grow ‘em, Keep ‘em
Proprietary and Confidential
Over Time
Mar
ket M
atur
ity
2010 2015 2020 2025 2030
Client WinLaunch Convo UX Practice 2016
Conversational UX Wave
Launch Cloud Native Practice ‘17
Client Win
Cloud Native Wave (Enterprise)
Launch Augmented Intelligence Practice Practice ‘18
Vision2020
Augmented Intelligence Wave
Launch Decision Intelligence ‘19
Vision2020
Data Wave
Typical S Curve
Innovators Early Adopters
Early Majority
Late Majority
Laggards
Riding the Waves of Digital Innovation Finserv Case Study
Rebrand as Solstice Mobile ‘10
Client Win
Mobile Wave
Proprietary and Confidential
KEY KPI: + Stood up new central demand
function including central sales,
marketing, partnerships and lead
generation teams
+ Signed over 40 cross-specialism
deals through central demand in
first year, valued at over £11 million
in new net revenue
NET REVENUE OF
£148M (+2%)
+ 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%.
*encompasses old priority “Scaling our sales function”
FY20FY19
We will accelerate growth through the continuous optimisation of a highly measurable, integrated and scalable demand generation machine.
Strategic Priority 01
Growth*
Proprietary and Confidential
KEY KPI: + Hired our first Chief Connective Officer, Charlie
Wrench
+ Launched our new brand, DX proposition and
created Kin + Carta Advisory as strategic
“front-end” to the proposition
+ Evolved capabilities in Cloud Modernization,
Artificial Intelligence, MarTech Modernization
and Digital Advisory
+ Doubled down on sector focus in Healthcare
and Financial Services
GROSS MARGIN
50% (50%)
+ Continue to invest in the evolution
of our holistic DX proposition
+ Further simplify our brands to make
it easier for clients to engage
FY20FY19
We will create and evolve a market defining set of sector-focused, technology-led business transformation offerings.
Strategic Priority 02
Proposition*
*encompasses old priority “Rolling out of the Connective”, “Deepen Sector Focus” and “Add New Capabilities and Partnerships”
Proprietary and Confidential
KEY KPI: + Through a number of new employee experience
initiatives we won seven Best Place To Work
awards globally
+ Raised our global employee NPS (eNPS) score
by more than 50%
+ Launched our first coordinated CSR plan,
pledging to certify all of our specialisms as B
Corps* by 2022
EMPLOYEE NET PROMOTER SCORE
27 (50%)
+ 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
FY20FY19
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).
Strategic Priority 03
People*
*learn more about B Corp at bcorporation.net
Proprietary and Confidential
KEY KPI: + Rolled out new organisational structure,
strategic planning framework and refreshed
Board
+ Rolled out new collaboration systems, Google,
Slack and Zoom, across the Connective
+ Began roll out of FinancialForce - financial and
project delivery systems (70% complete)
OPERATING MARGIN ON NET REVENUE
13 (-1%)
+ 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
FY20FY19
We will build an operational platform made up of best-in-class operational systems and seamless shared services.
Strategic Priority 04
Platform
(+£3Mn investment)
Proprietary and Confidential
KEY KPI: + Launched new Innovation (TAB) office in
Edinburgh
+ Launched new Communications
(AmazeRealise) office in Chicago
+ Launched new Kin + Carta Advisory
offices in New York and London.
+ Now have all three of our core capabilities
in the US for the first time
US & REST OF WORLD
53 (+5%)
+ Increased attention on acquisition
opportunities for DX services firms in the
US and Europe, with a near term focus on
unlocking growth in the western and
southern regions of the United States.
FY20FY19
We will execute a purposeful and intelligent expansion into new regions domestically and internationally.
Strategic Priority 05
Expansion*
*encompasses old priority “Geographic Expansion” and “Acquisitions”
Proprietary and Confidential
+ Doing leading edge work in areas like AI and Cloud for some of the largest companies in the world
+ New strong, incentivized, leadership team
+ Connective platform rolled out and resonating with clients
+ Investments beginning to show results, with more to come
+ Continued investment to create platform for sustainable double-digit DX market growth
+ Expecting double-digit net revenue growth for FY20 with double digit operating margins increasing in the medium term
In conclusion
Proprietary and Confidential
Announcement
4th Annual Digital Innovation Summit
FWD 2019 Breakthrough
+ Largest Digital Innovation Summit in the Midwest
+ 750 Registrations and 600 Attendees
+ Over 30 Speakers in 8 Hours
+ 6 Emerging Tech Experiences built over 9 months
+ Sponsored by Google, AWS, Pivotal, VMWare, Acoustic
+ Over 200 brands in attendance
+ 100% of Solstice Client Participation