Interim Results

Proactive

One2One Forum

6th October 2016

CELLO – INTRODUCTION

• Two businesses – Cello Health and Cello Signal

• We supply marketing advisory services primarily to the

pharmaceutical sector

• Global infrastructure in Europe, USA and Asia

• c.1000 professionals

• £86.7m gross profit, £10.4m headline operating profit (2015)

• Long term client relationships with good contracted profile and

visibility

• Low client concentration

• Low gearing and low earn out profile

• Strong and growing dividend

2

SEGMENTAL ANALYSIS

2015 2014

Headline Gross Profit

£m

Headline Operating

Profit £m

Margin

%

Headline Gross Profit

£m

Headline Operating

Profit £m

Margin

%

Cello Health 44.5 8.8 19.7% 40.0 8.5 21.2%

Cello Signal 41.6 3.9 9.5% 39.5 3.4 8.7%

Sub total 86.1 12.7 14.7% 79.5 11.9 14.7%

Central cost - (2.3) - - (2.1) -

Group 86.1 10.4 12.1% 79.5 9.8 12.3%

3

CELLO HEALTH 2015 2014 % change

£’000

Headline Gross profit 44,496 39,966 11.3% Headline operating profit 8,779 8,464 3.7%

Margins 19.7% 21.2% -

• Like-for-like gross profit up 4.7% (2014: 3.6%) • Like-for-like gross profit up 7.6% (ex consumer) • Operating margin remains competitive • Overall client base growing, especially in USA • Collaborative wins grow strongly behind the Cello Health brand • Biotech client base growing, especially in USA • Start-up office making progress in Boston • Continued client led expansion underway in Chicago and San Francisco • Consumer area tougher, impacting margin slightly

4

DIVIDEND

• Interim dividend increased by 19.0% to 1.00p (2015: 0.84p)

• 10 year unbroken full year dividend growth record

• Degearing allows revision of dividend policy

• Aim is to distribute 40% of headline earnings

5

DEFERRED CONSIDERATION

• Expected payment in May 2017 £2.8m (mainly cash)

6

CELLO HEALTH: INTRODUCTION

Clinically-led commercial advisory services

22 of the top 25 global pharmaceuticals companies are clients

450 professionals (scientific and/or industry backgrounds)

International footprint (US, UK)

£45.5m GP, £8.8m HOP (2015)

7

CELLO HEALTH – AN INTRODUCTION Stephen Highley - Chairman Jane Shirley - CEO, Europe Julia Ralston - CEO, USA Jon Bircher - Chief Commercial Officer Andy Brown - Finance Director

CONSUMER

Farnham, UK Philadelphia

Boston

London New York Chicago

San Francisco

Farnham, UK London

Philadelphia

London New York

8

WHO DO WE WORK FOR ?

9

CONSUMER

Understanding the customer, the market, the competition and client

brand performance

Key decision making on strategy/execution and configuring the

organisation to deliver

From strategy to action; market activation

Our Capabilities

WHY DO CLIENTS NEED CELLO?

10

From 10-15k molecules to 1

Cost of $1.4bn – $4bn (approx.)

Only 1 in 3 L

A U

N C

H

P A

T E

N T

E

X P

I R

Y

PHARMACEUTICAL COMMERCIAL LIFECYCLE

US$

(M

ILLI

ON

S)

SALES INVESTMENT COST PRE-TAX PROFIT

TIME

9 – 11 years

Dev’t Marketing

20 year patent life

THIS IS KEY

ESSENTIAL TO GET IT RIGHT EARLY

THIS IS WHERE DEFINED

HEALTH FITS!

11

WILL THE MARKET GROW?

Sources: 1. Pharmaprojects, January 2016 2. Analysis Group Innovation in the Biopharmaceutical Pipeline: A Multidimensional View, January 2013.

5,99

5

6,19

8

6,41

6

6,99

4

7,36

0

7,40

6

7,73

7

9,21

7

9,60

5

9,73

7

9,71

3

10,4

52

10,4

79

11,3

07

12,3

00 13

,718

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nu

mb

er o

f as

sets

Total WW R&D pipeline size by year 2001–2016

KEY COMPETITORS

Company MedComm Marketing Analytical

Support

Market

Research

Regulatory &

Compliance

Accenture plc

Cello Group plc

Healthcare Consultancy Group (s/o Omnicom Group)

HealthSTAR Communication

ICON plc

IMS Health

inVentiv Health, Inc.

Medical Knowledge Group

Medidata Solutions

MediMedia USA, Inc.

PAREXEL International Corp.

Publicis Group SA

UDG Healthcare plc

Huntsworth Health

12 Source: Brocair Partners

CELLO HEALTH – GROWTH IN 2016/7

• Continued addition of professionals, particularly in US

• Continued US office expansion – Chicago, San Francisco,

and Boston

• Investment in Market Access capability in US

• Investment in Biotech consulting capability in US

• Investment in digital communications capabilities in US and UK

• Push into quantitative research – showing through already

• Launch of Pulsar Health product

• Consolidation of UK operations into Farnham Hub Office

13

CELLO SIGNAL – INTRODUCTION

14

John Rowley - CEO Minh Huynh - Finance Director Richard Marsham - Managing Partner, Edinburgh Barney Hosey - Managing Partner, Cheltenham Job Muscroft - Managing Partner, London Doug Edmonds - Managing Partner, USA

AGENCY INSIGHT SPECIALIST SERVICES

Edinburgh Cheltenham

London

London New York

San Francisco Los Angeles Singapore Hong Kong

London Edinburgh

CELLO SIGNAL – BLUE CHIP CLIENT

FRANCHISE

• Financial Services:

• Tech:

• Utilities:

• Gov & Charities:

15

PULSAR KEY NUMBERS

16

The global social media analytics market will grow from USD 1.60 Billion in 2015 to USD 5.40 Billion by 2020.

No of clients: 242

Average contract length:

11 months

MRR growth: (YoY) 45%

Monthly Recurring Revenue: (MMR)

(June 2016) £252K

Team: 20 people

(*Market and markets report 2016)

PULSAR KEY CLIENTS

17

KEY COMPETITORS

Name Turnover Ownership

Brandwatch £30m PE $60m investment

Synthesio N/A PE $22m investment

Crimson Hexagon

$35m PE $11m investment

Sysomos N/A PE Backed

Radian 6 N/A Bought by Salesforce.com

SUMMARY AND OUTLOOK FOR 2016

• Solid growth in fee income in both Cello Health and Cello Signal

• Long standing client relationships remain strong and growing

• Rapidly increasing exposure to US market

• Leverage of aspects of Cello Signal into healthcare

• Strong balance sheet

• Significant dividend increase

• Good 2016 outlook based on current pipeline

18

19

THANK YOU

Mark Scott, CEO

Mark Bentley, Group Finance Director

Cello Group plc

11-13 Charterhouse Buildings

London EC1M 7AP

020 7812 8460

www.cellogroup.com