Communisis at a glanceWhat we do

Omni-channel Brand communication servicesFor a better customer experience

Marketing communications Design/Deploy• Relevant, engaging and

captivating content

Customer communicationsProduce• Reliable, easy to understand

and efficient documents

Key facts

• Fully listed (CMS)• £105m market cap• 4.4% dividend yield• 2200+ employees (150+ overseas)

• 51 locations in 16 countries• Blue chip clients in:

41%

23%

8%

7%

4%

17%Financial services

Consumer goods

Utilities

Government & charities

Retail

Other

2

Communisis today – what do we do• Add value to brand communications• Create and distribute marketing messages and customer

communications on behalf of our clients• Work B2B, providing services B2C• Operate through three segments – Design, Produce and Deploy

Communisis Our clientsTheir

customersB2B B2C

Services

Communisis Our clients Their customers

3

Some of our clients

4

2015 Interim results

Financial highlights

Strong growth in profitability, operating margin and earnings per share driven by:• Enduring client relationships• Higher margin services

Improved free cash flow and reduced bank debt by:• Targeted investment• Cash control

Dividend increase for the fifth consecutive year, in line with progressive dividend policy

Comparison H1 2015to H1 2014

£m As Reported

Constant Currency*

Total revenue £175m +3% +6%

Adjusted operating profit**

£7.2m +18% +25%

Adjusted operating margin**

6% +16% +20%

Adjusted earnings per share***

2.01p +15% +23%

Dividend per share 0.73p +9% +9%

Free cash flow £6m +£5m +£5m

Bank debt (improvement)

£32m -£2m -£2m

* As reported excluding the translation effect of changes in foreign exchange rates

**Before exceptional items and the amortisation of acquired intangibles

***Fully diluted and excluding the after tax effects of exceptional items and the amortisation of acquired intangibles

6

Operational highlightsContinued growth• Integrated agency model developed and launched as PSONA

Life marketing Agency acquired. Insight-led shopper marketing agency

• Significant new multi-year contractual relationships secured or retained AXA UK. Six year term. Incoming and outgoing marketing and customer

communications EE. Two year contract. Marketing communications Long-standing utility sector client. Five years. Outgoing transactional

communications

• Overseas expansion Three new locations (Bucharest, Milan, Warsaw) New consumer goods clients scaling up the portfolio

Innovation• New digital services platform developed for multi-channel customer messaging -

successfully used by Nationwide Building Society, as it enabled Apple Pay • Won gold and bronze POPAI awards for innovative point-of-purchase and in-store

communications

7

Design

Design – Marketing communicationsActivities

• Building an integrated digital

agency - PSONA launched

• Bespoke London office opened

• New capabilities acquired - Life

Marketing Agency - Insight-led

shopper marketing

Metrics

H1 contribution increased from £1.6m to £2m, +24%. Margin reduced from 13.9% to 12.2%. Full six months revenue from 2014 and

early 2015 acquisitions Recovery in data activities

repositioning in analytics broader sector appeal

Synergy realisation Weighting of certain retail based

revenue and contribution to H2 with a more evenly spread cost base

11%

% of group contribution

9

Design – Any channel, any category

Capabilities Production & data agencies Creative agencies

10

Direct mail programme to merchants

11

Digital journey to increase engagement

12

Internal communications

13

Produce

Produce – Customer communicationsActivities

Outgoing• Personalised direct mail• Personalised cheque books• Personalised statements, billings and

correspondence• Digital messaging (email/mobile/tablet) –

new in 2014 • Specialist customer communication

consulting services – new in 2014Incoming• Digital capture, distribution and archiving of

customer correspondence – new in 2014

Differentiation

Expertise in: Document composition IT integration Process integrity Regulatory compliance Reliable large scale production

of personalised communications• Investment in market-leading

technology, a significant barrier to entry

• Trusted supplier of business-critical communications

% of group contribution

56%

15

Produce - Integrated technology & service excellence

Campaign workflow

DAM

Rules

Correspondence preference database

Document composition &

production workflow

Correspondence archive

Print

E-mail

Web

SMS

16

Produce – Customer communicationsTrends

• Market growth from new

outsourcing contracts

Incoming and outgoing

• Market share gains

• Digital messaging

• Demand for specialist consulting

• Migration from paper to digital

formats

Metrics

H1 contribution increased from £8.7m to £9.7m, +12%Margin improved from 11.2% to 12.5% • New higher margin services Full six months contribution from

incoming mail Growth in non print including digital

messaging and consulting (now 16% of contribution, nil in 2013)

• Move to white paper• Process improvement and cost

reduction• Better capacity utilisation on

restructured base

17

Deploy

Deploy – Marketing communicationsActivities & capabilities

• Brand activation services - sourcing and distributing point of sale marketing collateral across Europe

• People, process and technology based service with modest infrastructure costs

• Clients – consumer goods brands in the food, drink, personal care, household, pharmaceutical and technology sectors

Metrics

H1 contribution increased from £5.6m to £5.8m, +3% Margin improved from 20.7% to 24.1% • Growth in revenues from new

clients and new territories on a constant currency basis

• Effective sourcing• Hubs in operation, scale

economies on new clients• Euro weakness impacted sterling

reported result by £(0.4)m% of group contribution

33%

19

Deploy - Our presenceHub

Client 1

Client 2

Client 3

20

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2015 H1 gross revenue by territory

Deploy – Marketing communications

Rapid growth of clients

and countries:

• Countries increased

from 19 (2014) to 21 (H1

2015)

• H1 clients grew from 9

(2014) to 23 (H1 2015)

£000

68 9

23

6

15

1921

2012 2013 2014 2015

Deploy strategic clients and countries

Clients Countries

21

2015 Interim resultsSummary financials

Summary income statement• Revenue increased 3% reported, 6% on a constant

currency basis

• Margin improved and toward the double-digit target

Profits weighted toward H2. Full year progress expected

• Exceptional items include ongoing restructuring costs and acquisition-related fees.

• Tax charge at the estimated effective annual rate of 22.9%

• Earnings per share increase +8% (+22% on constant currency)

Focused on bottom line growth

H1 2015£m

H1 2014£m

Trading 118.8 116.3

Pass through 55.8 53.0

Total revenue 174.6 169.3

Segmental contribution 17.5 15.9

Central and corporate costs (10.3) (9.8)

Adjusted operating profit 7.2 6.1

Amortisation of acquired intangibles

(0.8) (0.4)

6.4 5.7

Exceptional items (1.4) (1.2)

Net finance costs (1.8) (1.6)

Profit before tax 3.2 2.9

Tax (0.7) (0.7)

Profit after tax 2.5 2.2

Adjusted earnings per share 2.01p 1.75p

Operating margin 6.0% 5.2% 0.00

0.30

0.60

0.90

1.20

1.50

1.80

2.10

H1 2013 H1 2014 H1 2015

Penc

e pe

r sha

re (p

ps)

Adjusted earnings per share

23

Margin & dividend

+16%+10%

+16%

+0%

24

Summary cash flow & net debt statementH1 2015

£m H1 2014

£m

EBITDA 12.8 11.3

Working capital increase (0.6) (0.2)

Pension contributions (0.6) (0.6)

Interest and tax (0.5) (1.9)

Exceptional items (1.7) (1.9)

Capital expenditure (3.4) (5.6)

Free cash flow 6.0 1.1

Investment in new contracts (1.1) (1.4)

Acquisitions - (5.8)

Dividends (2.8) (2.3)

Other (0.7) (0.1)

Decrease (increase) in bank debt

1.4 (8.5)

Net bank debt (31.7) (33.3)

Finance leases (2.4) (2.9)

Promissory loan notes (9.3) -

Net debt (43.4) (36.2)

• Improved free cash flow due to

Increased profitability

Tight working capital management

A tax repayment

More normal maintenance levels of capital expenditure

• Acquisition of Life Marketing Agency

Consideration comprised new shares and two-year promissory loan notes

Free cash flow improvement trend expected to continue

-10.0

-5.0

0.0

5.0

H1 2013 H1 2014 H1 2015£mFree cash flow

25

Bank facilities

• Bank debt less than 50% of facilities

£65m Revolving Credit Facility until March 2018

£5m overdraft, renewable annually

• Average rolling 12 month bank debt £44.5m

due to inter-period fluctuations in working capital

• Bank debt and average bank debt 1.1x and 1.6x EBITDA

• Interest cover 4x

0

10

20

30

40

50

60

70

80

12M to June 10 12M to June 11 12M to June 12 12M to June 13 12M to June 14 12M to June 15

£m

Bank Debt and Facilities

Period end bank debt Average intra period bank debt Total facilities

26

Summary balance sheet• Reduction in net assets reflects a £21m

goodwill impairment at December 2014

• Intangible assets Goodwill impairment offset by new

intangibles on acquisitions

• Pension deficit Unchanged from December 2014 £19.5m triennial valuation deficit at

March 2014 Changes principally driven by fall in

gilt/bond yields

H1 2015£m

H1 2014

£m

Property, plant and equipment 24.6 24.5

Intangible assets 193.8 195.8

Deferred tax and other 5.1 3.4

Non-current assets 223.5 223.7

Inventories 6.8 8.1

Receivables 66.8 61.3

Trade and tax payables (95.4) (85.2)

Pension deficit (39.2) (31.4)

Net debt (43.4) (36.2)

Net assets 119.1 140.3

Share capital 51.9 49.7

Reserves 67.2 90.6

Shareholders’ funds 119.1 140.3

27

OutlookConfident outlook for the full year with the prospect of:

• Revenue growth• Continuing profit improvement• Ongoing cash generation and reduction in bank debt

Supported by:

• Success in winning and retaining multi-year contracts• Growing reputation for delivering brand activation services across

Europe• Strong pipeline of opportunities

28

Investment caseManagement team with a record of achievement and strategy for growth

• Increasingly profitable and cash generative business

• Continued move into higher margin services

• Benefits of operational gearing following investments in market-leading technology and multi-year contracts

• Client-led international expansion

• Portfolio of blue-chip clients

• Differentiated offer and competitive position

• Progressive dividend policy

29