2 Digital is in control Industry analyst Michael Nathanson has carried The global economy drives growth in our out an important analysis which shows that markets. The total market we address is worth advertising spend as a proportion of GDP between $2 trillion and $3 trillion: advertising shrank from 2% to 1%, over the last 5-7 years, media is approximately $650 billion; marketing but in the last couple of years it has started to services $550 billion; trade budgets around increase again. He forecasts it will reach 1.75% $700 billion; and digital transformation by 2024-25, and all that growth is going to budgets another $500 billion. Overall, our come from digital. The traditional areas of free- markets probably grew by 15-20% in 2021, to-air TV, network TV, radio, newspapers and but the significant point is that nearly all that magazines will stay flat, or decline, but digital growth was digital. In media advertising, the will continue to grow. As we are digital-only we increase in spending with Google, Meta and will benefit and we are increasing our share of Amazon alone was over $100 billion in 2021. the market. At S4Capital our revenues grew by around 52% in 2021, and it looks as though the digital part of the industry will continue its growth trajectory over the next two or three years. Time spent per 500 day with digital 450 vs traditional media in US 400 Minutes 350 300 250 200 2015 2016 2017 2018 2019 2020 2021E 2022E Digital Traditional E: Estimate Source: Statista.com Growth in our addressable markets % 2019 2020 2021 2022F 2023F 1 Total media spend 5.2% -1.8% 19.8% 9.8% 8.8% Digital media spend2 19.0% 13.0% 29.3% 14.1% 13.8% North American digital spend2 15.9% 12.2% 38.2% 19.2% 20.0% Digital transformation spend3 18.0% 11.0% 14.5% 20.0% 16.7% 4 Cloud growth 28.8% 33.4% 36.1% 34.3% 27.9% MarTech growth5 35.9% 32.6% 37.4% 32.0% 34.0% Holding company growth6 0.4% -8.1% 11.0% 5.4% 3.4% 7 Tech Services growth 27.6% 20.4% 40.3% 35.2% 25.9% S4Capital growth8 44.0% 19.0% 44.0% 25.0% 25.0% F: Forecast Sources: 1. MoffettNathanson 5. Morgan Stanley for Salesforce (Subscription), Adobe 2. MoffettNathanson 6. MoffettNathanson 3. https://www.statista.com/statistics/870924/worldwide-digital- 7. Cowen transformation-market-size/ 4 8. S Capital 4. Morgan Stanley for Google, Azure, AWS S4Capital Annual Report and Accounts 2021 43