K+C Presentation 1.23 · 2020-01-29 · Proprietary and Confidential Digital Ventures: Using AI to predict crop yields for Corteva +$14Bn revenue agriscience business spun out of

Overview Presentation Kin+Carta 1.23.20

Proprietary and Confidential

+ Seizing the Opportunity

+ Structured for Growth

+ Winning Formula

+ Experience Tour

Agenda


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


PurposeAt Kin+Carta, we’re not here to talk about changing the world. We’re here to make it work better.


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:


+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


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:


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:


Global Blue Chip Base of 360 Active Clients

FINANCIAL SERVICES

RETAIL AND DISTRIBUTION

TRANSPORTATION HEALTHCARE INDUSTRIALS AND AGRICULTURE

NEW

DX

RE

MIT

S


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


+ 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:


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.


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.


San Francisco

Chicago

New York

Buenos Aires

London

Singapore

Access to 1,600+ digital specialists across four continents.

Denver

Amsterdam


Transformation takes a village. We call ours The Connective.


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


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


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


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


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


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


+Bigger initial deal size

+Longer running programs with greater lifetime value

+Greater pipeline velocity

Demand Engine Get ‘em, Grow ‘em, Keep ‘em


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


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*


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.


Proposition*

*encompasses old priority “Rolling out of the Connective”, “Deepen Sector Focus” and “Add New Capabilities and Partnerships”


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).


People*

*learn more about B Corp at bcorporation.net


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.


Platform

(+£3Mn investment)


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.


Expansion*

*encompasses old priority “Geographic Expansion” and “Acquisitions”


+ 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


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

Documents

K+C Presentation 1.23 · 2020-01-29 · Proprietary and Confidential Digital Ventures: Using AI to predict crop yields for Corteva +$14Bn revenue agriscience business spun out of