Slides
Page 1
$ 4 CAPITAL 20261 Results 5 August 2026
Page 2
2 Contents 1. Results 2. Market Momentum 3. Artificial Intelligence 4. Summary and Outlook 5. Q&A 6. Appendix S4 Capital plc H1 2026 Results
Page 3
33 1. Results S4 Capital plc H1 2026 Results
Page 4
4 Financial Headlines Net revenue1 £308.0m -6.2% reported -4.7% like-for-like2 S4 Capital plc H1 2026 Results Operational EBITDA3 £38.0m +82.7% reported +127.5% like-for-like2 Operational EBITDA margin3 12.3% vs. 6.3% prior year reported vs. 5.2% prior year like-for-like2 Adjusted operating profit4 £35.2m vs. £16.4m prior year reported Adjusted EPS 2.7p vs. 0.2p prior year reported Net Debt5 £66.3m 0.7x leverage5 vs. £145.9m (2.0x) prior year reported The Board has approved an inaugural interim dividend of 1.35 pence per share. The Company has met the targeted reduction of its Term Loan B, repurchasing a further €40.1m, subject to settlement. This, together with the €85.2m previously announced, reduces the outstanding Term Loan B to €249.7m. 1. Net revenue is revenue less direct costs. 2. Like-for-like is a non-GAAP measure and relates to 2025 being restated to show the audited numbers for the previous year of the existing and acquired businesses consolidated for the same months as in 2026 applying currency rates as used in 2026. 3. Operational EBITDA is operating profit or loss adjusted for acquisition related expenses, non-recurring items (primarily acquisition payments tied to continued employment, amortisation and impairment of business combination intangible assets and restructuring and other one-off expenses) and recurring items (share-based payments) and includes right-of-use assets depreciation. It is a non-GAAP measure management uses to assess the underlying business performance. Operational EBITDA margin is operational EBITDA as a percentage of net revenue. 4. Adjusted figures are adjusted for non-recurring and recurring items as defined above. 5. Net debt excludes lease liabilities. Leverage is calculated as net debt / pro-forma 12-month operational EBITDA
Page 5
5 ● Net revenue down 4.7% like-for-like and 6.2% reported reflecting macroeconomic uncertainty exacerbated by the Middle East conflict, combined with technology clients/ hyperscalers further prioritising AI capex investment. ● Disciplined cost control with a 12.6% improvement in Personnel and Operating expenses and 10.6% in Total operating expenses. ● Number of Monks circa 6,150 down 3% on circa 6,350 at December 2025 and 11% on circa 6,900 at June 2025. ● Operational EBITDA of £38.0m, 12.3% margin, up 710 bps like-for-like. Profit or loss H1 2026 £m H1 2025 £m Change Reported Change Like-for-like Revenue 344.0 360.4 (4.6%) (3.2%) Net revenue 308.0 328.2 (6.2%) (4.7%) Personnel and operating expenses (265.9) (304.2) 12.6% Acquisition, restructuring and other expenses (4.0) (3.4) (17.6%) Depreciation, amortisation and impairment (33.1) (31.5) (5.1%) Share of profit from JV&As - - - Total operating expenses (303.0) (339.1) 10.6% Operating profit / (loss) 5.0 (10.9) 145.9% Adjusting items (30.2) (27.3) (10.6%) Adjusted operating profit 35.2 16.4 114.6% Net finance expense and loss on net monetary position (5.1) (14.2) 64.1% Loss before income tax (0.1) (25.1) Income tax (expense)/credit (0.5) 2.8 Loss for the period (0.6) (22.3) Adjusted earnings per share (pence) 2.7 0.2 Operational EBITDA 38.0 20.8 82.7% 127.5% Operational EBITDA margin 12.3% 6.3% 600bps 710bps Adjusting items H1 2026 £m H1 2025 £m Amortisation 24.4 22.8 Share based payments 1.8 2.6 Acquisition expenses/(gain) - (0.1) Restructuring and other expenses 4.0 2.0 Total of adjusting items 30.2 27.3 S4 Capital plc H1 2026 Results
Page 6
6 ● Marketing Services: Net revenue down 4.4% like for like and 5.7% reported to £281.9m. This reflected macroeconomic uncertainty, client caution and Technology clients prioritising AI infrastructure. Scope reduction in BMW impacted EMEA. ● Technology Services: Net revenue down 7.4% like for like and 10.6% reported to £26.1m. This reflected a similar impact by broader macroeconomic headwinds and longer sales cycles. Net revenue by practice and geography Net revenue by geography1 H1 2026 £m H1 2025 £m Change Reported Change Like-for-like Marketing Services 281.9 299.0 (5.7%) (4.4%) Technology Services 26.1 29.2 (10.6%) (7.4%) Net revenue 308.0 328.2 (6.2%) (4.7%) S4 Capital plc H1 2026 Results 1. Prior year on a like-for-like basis.
Page 7
7 ● Marketing Services: Despite the revenue pressure, Operational EBITDA increased to £44.1m with a margin improvement of 690 bps like-for-like to 15.6%. This reflects the annualised impact of the cost actions taken in the second half of 2025. ● Technology Services: Operational EBITDA increased to £4.4m with a margin improvement of 1,190 bps like-for-like to 16.9%, again as a result of disciplined cost measures. ● Number of Monks circa 6,150 down 3% on circa 6,350 at December 2025 and 11% on circa 6,900 at June 2025. Operational EBITDA by practice H1 2026 £m H1 2025 £m Change Reported Change Like-for-like Marketing Services 281.9 299.0 (5.7%) (4.4%) Technology Services 26.1 29.2 (10.6%) (7.4%) Net revenue 308.0 328.2 (6.2%) (4.7%) Marketing Services 44.1 28.5 54.7% 72.3% Technology Services 4.4 2.6 69.2% 214.3% S4 Central (10.5) (10.3) 1.9% 1.9% Operational EBITDA 38.0 20.8 82.7% 127.5% Marketing Services 15.6% 9.5% 610bps 690bps Technology Services 16.9% 8.9% 800ps 1,190bps Operational EBITDA margin 12.3% 6.3% 600bps 710bps S4 Capital plc H1 2026 Results
Page 8
● H1 2026 closing net debt reduced by £79.6m to £66.3m (£145.9m H1 2025). This was driven by significant improvement in EBITDA and strong liquidity. ● Leverage of 0.7x, vs 2.0x at June 2025 and below target range of 1.0x. ● Comfortable headroom against key covenant1. ● Liquid balance sheet with long dated maturities. £100m RCF remains undrawn (maturity August 2026 with a facility of £80m extended to February 2028 on the same terms). ● The Company has met its target and repurchased €125.3m of the €375m term loan at a discount, reducing the term loan balance to €249.7m. 8 Debt and balance sheet 1. The facility agreement imposes certain covenants on the Company. The Company will ensure that the net debt will not exceed 4.5:1 of the pro-forma earnings before interest, tax, depreciation, and amortisation, measured at the end of any relevant period of 12 months ending each semi-annual date in a financial year, as defined in the facility agreement. During the year the Company complied with the covenants set in the loan agreement. 2. In February 2025, S4Capital’s relationship lenders extended the maturity of the majority of the £100m Revolving Credit Facility by 18 months, from August 2026 to February 2028. Borrowing margins and debt covenants remain unchanged. The facility is bifurcated, with a £20m tranche maturing in August 2026 as before, and £80m maturing in February 2028. As at 30 June 2026 Net debt £m Facility m Undrawn £m Maturity due date Term loan 249.6 €289.8 - Aug 2028 RCF2 - £100.0 / £80.0 100.0 Aug 2026 / Feb 2028 Cash (183.3) - Nebt debt 66.3 100.0 Net debt to operational EBITDA 0.7x H1 2026 £m H1 2025 £m Intangible assets 621.6 639.4 Right-of-use assets 22.8 27.3 Property, plant and equipment 9.2 9.9 Others 54.0 52.0 Non-current assets 707.6 728.6 Trade and other receivables 362.1 378.2 Cash and cash equivalents 183.3 240.8 Current assets 545.4 619.0 Total assets 1,253.0 1,347.6 Deferred tax liabilities (12.4) (12.9) Loans and borrowings (246.9) (324.4) Others (17.6) (21.6) Non-current liabilities (276.9) (358.9) Trade and other payables (434.3) (452.9) Contingent consideration and holdbacks (6.2) (6.2) Other (22.6) (23.6) Current liabilities (463.1) (482.7) Total liabilities (740.0) (841.6) Net assets 513.0 506.0 Attributable to owners of the Company 512.9 505.9 Non-controlling interests 0.1 0.1 Total equity 513.0 506.0 S4 Capital plc H1 2026 Results
Page 9
9 Cash flow highlights ● Free cash flow £10.4m in H1 2026 vs. £16.0m in H1 2025. Movement driven by an expected Q1 2026 working capital outflow. This was primarily driven by a combination of stronger YoY Q4 2025 collections and lower YoY Q4 2025 media billings. As collections normalised and trading strengthened, working capital improved in the second quarter. ● Reduction in interest and facility fees paid due to repurchase of the term loan and a lower floating rate on term loan. ● £4.3m gain on repurchase of the term loan at a discount. ● Restructuring and other one-off expenses primarily includes £3.9m and £1.4m transformation costs. ● Other primarily includes foreign exchange gain. H1 2026 £m H1 2025 £m Operational EBITDA 38.0 20.8 Capital expenditure1 (2.7) (2.1) Interest and facility fees paid (9.8) (11.9) Interest received 1.9 1.0 Income tax paid (3.8) (1.8) Restructuring and other one-off expenses paid (5.7) (9.2) Change in working capital2 (7.5) 19.2 Free cash flow 10.4 16.0 Gain on loan repurchase 4.3 - Other3 5.9 (19.0) Movement in net debt 20.6 (3.0) Opening net debt (86.9) (142.9) Net debt (66.3) (145.9) Net debt to proforma operational EBITDA 0.7x 2.0x S4 Capital plc H1 2026 Results 1. Includes purchase of intangible assets, purchase of property, plant and equipment, and security deposits offset by proceeds from disposal of property, plant and equipment. 2. Working capital primarily includes movement on receivables, payables, principal elements of lease payments and depreciation of right-of-use assets. 3. Other includes foreign exchange gain of £5.6m (H1 2025: £18.0m loss) and hyperinflation gain of £0.2m (H1 2025: £0.8m loss).
Page 10
10 Net debt bridge ● H1 2026 FX benefit on net debt £7.3m, £4.7m term loan and £2.6m cash. ● £4.3m gain on loan repurchase. ● Free cash flow of £10.4m, lowering closing net debt position to £66.3m. H1 2026 Net debt bridge 1. Other in chart above primarily includes hyperinflation. S4 Capital plc H1 2026 Results
Page 11
11 Capital Allocation priorities S4 Capital plc H1 2026 Results 1. Dividends Board has implemented dividend payout ratio of 50% of adjusted BEPS and will recommend a final 2026 dividend in line with that policy. 2. Debt buy-back The Company has met the targeted reduction of its Term Loan B, reducing the outstanding Term Loan B to €249.7m. 3. Share buy-backs
Page 12
12 2026 Guidance 1. On a like-for-like basis. 2. This is a target, not a profit forecast. 3. Excluding the impact of the gain on loan repurchase. S4 Capital plc H1 2026 Results Net revenue Expected to be down mid- single digits1 Operational EBITDA Remaining at current analyst consensus level of £85m2 Net finance expense c.£19-21m3 (cash c.£16-18m3) Effective tax rate 28–30% expected Operational EBITDA margin Targeted to increase by 140bps2 Net debt £50–80m Aim to maintain leverage under 1.0x operational EBITDA
Page 13
1313 2. MarketMomentum S4 Capital plc H1 2026 Results
Page 14
14 2025 and 2026 market dynamics 14 2025 Digital Media Spend growth +8.7%1 Digital Marketing Technology services Top 5 Platform growth +16%2 2026 Digital Media Spend growth +6.7%1 expected Top 5 Platform growth +18.7%2 expected 2025 Technology services market growth +4.2%3 2026 Technology services market growth +0.9%3 expected S4 Capital’s medium term objective is to outgrow the market 1. Dentsu December 2025 2. Alphabet, Meta, Amazon, Microsoft, Snap Company Reports July 2026 3. Average Growth for EPAM, Endava, Globant, Accenture Company Reports & Morgan Stanley July 2026 S4 Capital plc H1 2026 Results
Page 15
15 Agency growth lags advertising spend ● Digital Advertising spend is almost 70% of total and grew 8.7% in 2025, Analogue spend declined 0.6% ● Agency growth was almost 0% in 2025, it has decoupled from Advertising Spend growth ● Client focus is on protecting media spend and decreasing “non-working spend” Global Ad Spend and Agency Revenue Growth Source: Digital Ad Spend Growth / Total Ad Spend Growth Dentsu December 2025, Agency Growth: Total Organic Net Revenue Growth for Dentsu, Havas, Publicis, IPG, Omnicom (Revenue) Stagwell, WPP, Company Reports March 2026, Global GDP: IMF Mar 2026 S4 Capital plc H1 2026 Results
Page 16
16 Alphabet, Meta, Amazon Capex Spend Vs Sales & Marketing Spend Tech companies prioritise Capex over Sales & Marketing spend Source: Alphabet, Meta, Amazon Company Reports, Morgan Stanley March 2026 ● Capex spend at Alphabet, Meta and Amazon has increased 133% since 2022, whereas Sales & Marketing spend has flat lined ● Analysts project continued increases in Capex spending for Hyperscalers ● Tech companies take the lead in leveraging AI in marketing S4 Capital plc H1 2026 Results
Page 17
H1 2025 Client Categories Technology 42% FMCG 9% Financial 6% Auto 12% Retail 6% Media & Ent 4% Fashion & Lux 6% Agency 4% Other 11% H1 2026 Client Categories Technology 42% FMCG 9% Financial 7% Auto 10% Retail 6% Media & Ent 5% Fashion & Lux 5% Agency 5% Other 11% 17 Our client portfolio S4 Capital plc H1 2026 Results
Page 18
18 Resilience with our larger client relationships Average revenue per client Client Revenue H1 2026 H1 2025 Number of clients % of Revenue Cumulative % Number of clients % of Revenue Cumulative % > £10m 5 42% 42% 6 42% 42% £5–10m 3 6% 48% 3 7% 49% £1–5m 37 22% 70% 40 21% 70% £0.1–1m 274 23% 93% 292 23% 93% S4 Capital plc H1 2026 Results
Page 19
1919 3. ArtificialIntelligence
Page 20
Proprietary & Confidential 20 Monks YouTube Drive in @Google Beach
Page 21
Proprietary & Confidential 21 Monks " Monks were two years ahead 12 months ago, they are three years ahead of the rest today. " NYC 2026
Page 22
↪ 2026 Growth Monks Proprietary & Confidential Loved by humans Preferred by machines
Page 23
2323 4. Summaryand Outlook S4 Capital plc H1 2026 Results
Page 24
24 Summary & Outlook S4 Capital plc H1 2026 Results ● H1 net revenue -6.2% reported and -4.7% like-for-like, reflecting continued macroeconomic uncertainty exacerbated by the Middle East conflict combined with technology clients/ hyperscalers prioritising AI investment. ● Reported record operational EBITDA £38.0m up 82.7%, 127.5% like-for-like, with higher proportion of operational EBITDA in the first half compared to previous years based on 2026 full year target. ● EBITDA margin 12.3%, up 600 basis points reported and 710 basis points like-for-like. ● Number of Monks circa 6,150 down 3% on circa 6,350 at December 2025 and 11% on circa 6,900 at June 2025. ● Half-year net debt at £66.3m (leverage of 0.7x), down from £145.9m (leverage of 2.0x) reported at 30 June 2025. ● Full year like-for-like net revenue expected to be down mid-single digits and full year EBITDA remaining at current analyst consensus level of £85m with margin targeted to increase by 140 basis points1. ● New Business wins from LVMH, Mercado Libre, CapitalOne, Revlon, Square, Seek, Watts and Air India. ● 2026 target net debt range lowered to £50-80m and aim for leverage to be maintained under 1.0x operational EBITDA. ● The Board has implemented a 50% dividend payout policy out of adjusted basic earnings per share, subject to financial targets being met, and will recommend a final dividend for 2026 in line with that policy. ● The final dividend for 2025 of 1.1p was paid in July. The Board has approved an inaugural interim dividend for 2026 of 1.35p per share, 50% of the adjusted basic earnings per share of 2.7p. ● The Company has met the targeted €125m reduction of its Term Loan B, reducing outstanding balance to €249.7m. ● We continue to see significant opportunities for new business, particularly driven by our AI tools and capability. Adoption from existing clients is ramping up as clients, driven by existential threats, in Automotive, Financial Services and FMCG move from pilots to full scaled adoption and our proprietary AI solutions are at the heart of all our new business efforts. ● We remain confident our talent, business model, strategy and scaled client relationships position us to deliver sustainable long-term growth. 1. This is a target, not a profit forecast.
Page 25
2525 5. Q&A S4 Capital plc H1 2026 Results
Page 26
2626 6. Appendix S4 Capital plc H1 2026 Results
Page 27
27 Additional information S4 Capital plc H1 2026 Results Guidance on adjusting items for 2026 Amortisation c.£50-55m Share based payments c.£4-5m Acquisitions, restructuring and other expensesc.£11-20m Total adjusting items expectedc.£65-80m Weighted average share count Expected weighted average share count for 2026 of c.675m1 Expected weighted average share count for 2027 of c.685m1 Cash contingent consideration Cash contingent consideration payments of c.£0.3m expected in 2026 Share consideration committed Deferred share issuance of c.6m shares expected in 2026 Expected contingent consideration shares of c.0.5m in 2026 1. Estimated weighted average share count excluding any impact due to incentive shares.
Page 28
28 Thank You