•Headlineplaced here

2015 FINAL RESULTS PRESENTATIONMarch 2016

CELLO – AN INTRODUCTION • We supply marketing advisory services to blue chip clients primarily in the 

pharmaceutical sector• 2 businesses – Cello Health and Cello Signal• Global infrastructure in Europe, USA and Asia • c.900 professionals• Large, high quality senior management team• Long term client relationships with good contracted profile and visibility• Low client concentration• Very low gearing and minimal earn out profile • Strong and growing dividend 

2

CELLO – AN INTRODUCTION 

CONSUMER

Farnham, UKPhiladelphia

Boston

LondonNew YorkChicago

San Francisco

Farnham, UKLondon

PhiladelphiaSan Francisco

LondonNew York

Stephen Highley ‐ ChairmanJane Shirley ‐ CEO, EuropeJulia Ralston ‐ CEO, USAJon Bircher ‐ Chief Commercial Officer Andy Brown ‐ Finance Director

(The Value Engineers, Breaking Blue, Kudos)

3

CELLO – AN INTRODUCTION John Rowley ‐ CEOMinh Huynh ‐ Finance DirectorRichard Marsham ‐Managing Partner, EdinburghBarney Hosey ‐Managing Partner, CheltenhamJob Muscroft ‐Managing Partner, LondonDoug Edmonds ‐Managing Partner, USA

AGENCY INSIGHT(2CV, Face, Pulsar, Human)

SPECIALIST SERVICES(Stripe, TMI)

EdinburghCheltenhamLondon

LondonNew York

San FranciscoLos AngelesSingaporeHong Kong

LondonEdinburgh

4

2015 FINANCIAL HIGHLIGHTS

• Gross profit up 7.0% to £86.7m (2014: £81.0m)• Headline profit before tax up 7.1% to £10.0m (2014: £9.4m)• Headline operating margin 12.1% (2014: 12.3%)• Like‐for‐like gross profit up 4.2%• Headline earnings per share up 5.8% to 8.61p (2014: 8.14p)• Net debt £4.2m (2014: £7.2m)• Full year dividend per share up 10.0% to 2.86p (2014: 2.60p)

5

SEGMENTAL ANALYSIS2015 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%

6

CELLO HEALTH2015 2014  % change

£’000Headline 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 

7

CELLO SIGNAL

• Like‐for‐like gross profit growth of 3.7% (2014: 4.2%)• Operating margin 9.5% (2014: 8.7%)• Substantial progress made towards integration behind the Signal brand• Large client wins in Q4, notably RBS • Pulsar losses halve to £0.2m; breaking even by Dec 2015; client 

list more than doubled in 2015• Non headline charge for VAT of £1.3m as described Interim Results

8

2015 2014 % change

£’000Headline Gross profit 41,555 39,469 5.3%Headline operating profit 3,952 3,433 15.1%Margins 9.5% 8.7%

INCOME STATEMENT2015£m

2014£m

Gross profit 86.7 81.0Headline operating profit 10.4 9.8Interest (0.4) (0.4)Headline profit before tax 10.0 9.4Restructuring costs  (0.7) (0.5)Start‐up investment (1.0) (0.5)Deal related costs (1.6) (1.3)Amortisation (0.4) (1.0)Share options (0.2) (0.2)Provision for VAT payable (1.3) (2.1)Statutory profit before tax 4.8 3.8

9

INCOME STATEMENT ITEMS

Item £’m CommentRestructuring costs 0.7 Signal restructuring and margin 

improvement Start up investment 1.0 Investment in Boston health business.  

2016 agreement to release employees from restrictions ‐ £0.9m in 2016.

Deal related costs and share options

1.6 Mainly iS Health 

Amortisation 0.4 Dropping – iS HealthCharge for VAT payable 1.3 Pre tax, pre client recovery.

Discussions ongoing.  Total provision of £3.2m

10

BALANCE SHEET

31 December 2015£m

31 December 2014£m

Goodwill 73.7 73.4Intangible assets  1.1 1.5Fixed assets 1.9 2.3Deferred tax asset 0.9 0.9Current non cash assets 43.7 40.0Cash 5.2 5.6Creditors < 1 year  (44.7) (40.8)Net current assets 4.2 4.8Creditors > 1 year (11.0) (13.4)Net assets 70.8 69.5

11

CASH FLOW AND NET DEBT2015£m

2014£m Comment

Net cash inflow from operating activities 8.2 4.8 Improved cash conversion

Interest (0.3) (0.4) Reducing interest charge

Tax (1.2) (2.4) Lower due to refunds re  VAT provision

Capex (1.2) (1.4) Includes £0.3M Pulsar investment

Acquisitions/cash/loan note issuance  (0.3) (1.6) iS Healthcare 

Dividends (2.2) (2.6)Three dividends paid in prior year. 9 year record of dividend growth

Net debt movement 3.0 (3.6)Opening net debt  (7.2) (3.6)

£20.0m RCF until March 2018Closing net debt  (4.2) (7.2)

Closing net debt: ebitda 0.35 0.6 Margin is 125‐230 bps over LIBOR

12

DIVIDEND• Interim dividend increased by 5% to 0.84p (2014: 0.80p)• Final dividend of 2.02p (2014: 1.80p), up 12.2%• Full year dividend therefore up 10% to 2.86p (2014: 2.60p)• 9 year unbroken full year dividend growth record

EARNOUTS• Total payments 2016 – 2017: £3.3m – substantially in cash

13

Cello Health

14

CELLO HEALTH• Clinically‐led commercial advisory and delivery under one brand – Cello Health• 50% pre launch, 50% post launch • 450 professionals, primarily with clinical or industry backgrounds• 21 of the top 25 global pharmaceuticals companies are clients • International reach (London, New York, Philadelphia, Chicago, San Francisco 

and Boston)• Long term habitual spending patterns from global clients

www.cellohealth.com 15

Core Capability Specialism

• Qualitative – all types, global coverage• Quantitative – all types, global coverage• Social/Consumer – digital/online patients, healthcare professionals

• Strategic Marketing• Brand and Portfolio Strategy (pre, post brand launch to loss of patent)• Early Product Commercialisation (managed care, market access)• Business Science (analytics, decision support software and tools, advisory)

• Marketing Excellence (process, organisation/people development)

• Strategic Communication Planning (medical, scientific, consumer)• Medical Communication Gap Analysis and Evidence Assessment• Medical and Health Consumer Marketing Communications• Scientific Data Dissemination and Education • Public Affairs and Influencer Marketing

• Strategic Consulting and Research 

CELLO HEALTH – CORE CAPABILITIES

CONSUMER

16

CELLO HEALTH – COMPETITIVE ADVANTAGE

Dominance of US market 65% – c.5% 

growthKey Trends

Cello Health Position

Continued consolidation of 

clients in Pharma space

Growth in Biotech versus Pharma

Growing use of digital channels and 

tools

Offering under one brand of 

Cello Health

Growing resource allocation towards BiotechBoston; San Francisco

Co‐opting of Signal capabilities

Pulsar Health; eVillage

Global footprint of Cello 

HealthBoston; NYC; Chicago; San 

Francisco; London

High demand for partner services

17

CELLO HEALTH – COMPETITOR OVERVIEWCompany MedComm Marketing Operational 

SupportAnalyticalSupport

MarketResearch

Regulatory & Compliance

Accenture plc

Cello Group plc

Ceuta Healthcare, Ltd.

China NT Pharma Group

CMIC Co., Ltd

Healthcare Consultancy Group (s/o Omnicom Group)

HealthSTAR Communication

ICON plc

IMS Health

inVentiv Health, Inc.

M3, Inc. (M3 USA Corporation)

Medical Knowledge Group

Medidata Solutions

MediMedia USA, Inc.

Omnicomm Systems, Inc.

PAREXEL International Corp.

PDI, Inc.

Pilgrim Quality Solutions, Inc.

Publicis Group SA

Qol Co. Ltd.

Semcon AB (publ)

The Interpublic Group of Companies, Inc.

Xerox Corporation (TMS Health, LLC)

UDG Healthcare plc

WPP plc

Source: Brocair Partners

18

19

CELLO HEALTH – DEVELOPMENTS IN 2015/2016

• Continued addition of professionals, particularly in US• Continued support of key investment initiatives – Boston based 

bioconsulting offer• US office expansion – Chicago and San Francisco• Expansion of iS Healthcare acquired in 2014• Push into digital solutions – Pulsar Health, eVillage• Appointment of global head of digital for Cello Health• Use Cello Signal capabilities to support Health growth strategy.

Cello Signal

20

CELLO SIGNAL• Digital and social media marketing 

solutions for big corporates• 500 professionals• Blue chip global client base: 

Technology, Mobile, FMCG, Retail, Financial Services, Public Sector and Charities

• Solid contracted revenue stream and visibility

• Global office network: Edinburgh, London, Cheltenham, New York, Los Angeles, San Francisco, Singapore and Hong Kong

• Strong technology underpinning and proprietary software licensing model

www.cellosignal.com

Share of 2015 gross profit 

21

CELLO SIGNAL – INDUSTRY TRENDS

• Universal migration of customer acquisition and retention online• Integration with large scale CRM systems • Shift to continuous, ‘big data’ based customer engagement • Shift to social media format for data acquisition and engagement • Rapid supplier consolidation • Entry of large scale technology players – Accenture, Adobe, Salesforce.com, 

IBM, Microsoft and Google

22

CELLO SIGNAL: FOCUS ON SCALE CONTRACTS

23

According to a recent study* the global social media analytics market to grow from USD 1.60 Billion in 2015 to USD 5.40 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 27.6% from 2015 to 2020.

PULSAR KEY NUMBERS

(*Market and markets report 2016) 24

MRR growth(YoY) 80%

Annual renewal Rate (2015):65%

Monthly Recurring Revenue (MMR)(Dec 2015) £240K

No of clients  191

Team 20 people

Average contract length: 13.4 months

PULSAR KEY CLIENTS

25

Name Turnover

Ownership

Brandwatch £30m PE $60m investment

Synthesis N/A PE $22m investment

Crimson Hexagon

$35m PE $11m investment

Sysomes N/A PE Backed

Radian 6 N/A Bought by Salesforce.com

KEY COMPETITORS

CELLO SIGNAL: DEVELOPMENTS IN 2015/2016

• Integration of agency core behind client‐facing Signal brand• Enlarging digital back end and social media front end

– Continued investment in Pulsar

• Continued focus on securing large scale contracts • Continued focus on margin improvement (15% mid term target)

– Margin improvement helped by reduced losses at Pulsar and raised margins in US business 

26

2015 SUMMARY AND OUTLOOK FOR 2016

• Robust growth in fee income in both Cello Health and Cello Signal for 2015• Long standing client relationships remain strong and growing• Rapidly increasing international exposure• Strong digital product offering• Strong balance sheet• Progressive dividend• Confident 2016 outlook based on current pipeline

27

THANK YOU Mark Scott, CEO 

Cello Group plc11‐13 Charterhouse Buildings London  EC1M 7AP020 7812 8460www.cellogroup.com

28