Due Diligence and Valuation Report Arrowhead Code: 64-01-02 Company: Communisis plc Coverage initiated: 02 June 2014 Ticker: LSE:CMS This document: 5 May 2015 Headquarters: London, U.K. Fair share value bracket (DCF): £0.66 and £0.84 Chairman: Mr. Peter Hickson Share price (1 May 15): £0.57i CEO: Mr. Andy Blundell Analysts S&C Development Director: Mr. Nigel Howes Snehal Mahajan Finance Director: Mr. Mark Stoner
[email protected] Website: www.communisis.com +1 (212) 619-6889 Market Data Multi-Channel Diversified Offerings And Relentless 52-Week Range: £0.47 - £0.70ii Focus On Acquiring New Contracts To Fuel Growth Average Daily Volume (3M): 385,266iii Arrowhead is initiating coverage on Communisis plc with Market Cap. (01 May 15): £117.2 MM a fair value bracket of £0.66 (Low-Bracket estimate) and £0.84 (High-Bracket estimate). Financial Forecast (in £) (FY ending - Dec) Key Highlights: (1) Client confidence in Communisis’ '15E '16E '17E ‘18E ‘19E ‘20E '21E quality of service offerings, as evidenced by the High NI 9.48 12.52 14.55 16.82 18.84 18.91 20.70 Company’s track record of consistently winning large and £ MM long-term contracts from blue-chip firms such as LBG, High EPS* 5.95 7.05 8.14 9.07 9.95 9.98 10.82 Low NI AXA UK, Nationwide Building Society (NBS), and Proctor 6.14 8.45 11.01 13.38 14.30 14.61 16.18 £ MM & Gamble (P&G); (2) Communisis through its diversified Low EPS* 4.38 5.14 6.48 7.46 7.82 7.96 8.70 service offerings positions itself as a perfect partner to *Adjusted Diluted EPS in pence provide communication more effectively and profitably Company Overview: Based in London, Communisis plc across multiple channels; (3) Communisis is well- (hereafter referred to as “Communisis” or “the Company”) positioned to take advantage of the growing preference is a leading multi-channel customer communication for digital marketing; (4) The Company has access to services provider with expertise in transactional, market leading technology and has successfully deployed marketing, and regulatory communications.