Informa Plc · LSE:INF
Informa — Investor Day (November 2015)
118 slides from Informa's investor day presentation, Nov 18, 2015
Slide 1: 2015 Informa Investor Day
2015 Informa Investor Day 18 November 2015
Slide 2: Introduction
INTRODUCTION STEPHEN A. CARTER GROUP CHIEF EXECUTIVE
Slide 3: Presentation Schedule
2015 Informa Investor Day Presentation Schedule • Introduction • Academic Publishing – Content Depth and Operating Efficiency • Global Exhibitions – Maximising the Growth Opportunity • Greenbuild – Overview & Tour • Lunch • Operational & Financial Update • Summary and Q&A
Slide 4: The Journey So Far
THE JOURNEY SO FAR Stephen Carter appointed 2014 Investor Day Group CEO & launch of Disposal of Consumer Info. strategic review Review of strategic options for European Conferences Gareth Wright confirmed as Group FD, external appointment of BI and K&N Dwell acquisition FIME acquisition CEO’s 2013 2
Slide 5: 2014-2017 Growth Acceleration Plan Framework
2014-2017 GROWTH ACCELERATION PLAN FRAMEWORK Growth Acceleration Plan GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy • 4 Operating Divisions • EMT established • Consumer Info disposal • Hanley Wood Exhib. • £70-90m programme
Slide 6: 2015 Investor Day: Focus on Largest Divisions
2015 INVESTOR DAY: FOCUS ON LARGEST DIVISIONS REVENUE SPLIT ADJUSTED PROFIT SPLIT 2014 PF* 2014 PF* ACADEMIC PUBLISHING 34% ACADEMIC PUBLISHING 43% GLOBAL EXHIBITIONS 21% GLOBAL EXHIBITIONS 24% BUSINESS INTELLIGENCE 24% BUSINESS INTELLIGENCE 21% KNOWLEDGE & NETWORKING 21% KNOWLEDGE & NETWORKING 12%
Slide 7: Business Intelligence: Structure, Talent, Portfolio
BUSINESS INTELLIGENCE Structure Talent Portfolio Reorganised around five Senior Management Team Disposal of Consumer core verticals in place, including CTO Information assets Investment Focus Trading GAP: Customer Insight, Customer management, Organic trend improving; Marketing Automation, subscript
Slide 8: Knowledge & Networking: Structure, Talent, Portfolio
KNOWLEDGE & NETWORKING Structure Talent Portfolio Reorganised around 3 core Senior Management Team Disposal of Scandi/Dutch verticals, with regional in place, including CTO businesses, closure of support Johannesburg/Melbourne Investment Focus Trading GAP: Digital transformation. Simplified operatin
Slide 9: Academic Publishing and Global Exhibitions: Common Characteristics
ACADEMIC PUBLISHING AND GLOBAL EXHIBITIONS COMMON CHARACTERISTICS MARKETS Operate in fragmented markets that are in growth Both are delivering growth inline or ahead of their GROWTH respective markets VISIBILITY Both have recurring revenue that is booked in advance CASHFLOW Both have attractive cash
Slide 10: Academic Publishing
2015 Informa Investor Day ACADEMIC PUBLISHING Roger Horton Chief Executive, Academic Publishing Division NOVEMBER 2015
Slide 11: Content Depth and Operating Efficiency
ACADEMIC PUBLISHING Content Depth and Operating Efficiency • Academic Publishing overview • Academic Journals • Academic Books • Q&A
Slide 12: Academic Publishing Overview
ACADEMIC PUBLISHING OVERVIEW 12
Slide 13: Unique Approach and Commercial Focus
UNIQUE APPROACH AND COMMERCIAL FOCUS 8 PILLARS OF ACADEMIC PUBLISHING DIVISION 1. BRANDS 5. INTERNATIONAL 2. SPECIALIST Long-term, 6. RELATIONSHIPS committed relationship 3. COMMERCIAL with 7. ACQUISITONS academic community 4. EFFICIENCY 8. QUALITY INFORMA GROUP INVESTOR DAY NOVEMBER 2015 13
Slide 14: The Global Academic Publishing Industry
THE GLOBAL ACADEMIC PUBLISHING INDUSTRY $5.3bn $11.2bn $10.7bn Online A&I Newsletters & Directories - 0.8 Other Services 1.9 1.0 Online A&I Services Newsletters & Directories – 0.5 3.2 Online A&I Services $27bn Journals 1.6 1.4 Market Size Journals Journals 4.6 3.7 2-3% Long term Books Books Books m
Slide 15: Informa's Academic Publishing Division
INFORMA’S ACADEMIC PUBLISHING DIVISION 2014 £409m revenue 3% organic growth £150m adjusted operating profit >110,000 Books 59% Humanities & Social Sciences Science, Technology & >2,400 Journals 41% Medicine 15% UK 53% Subscriptions 48% North America 2014 2014 47% Copy Sales 15% Cont. Europe 22% Rest
Slide 16: Consistent Growth Inline or Ahead of the Market
CONSISTENT GROWTH INLINE OR AHEAD OF THE MARKET Academic Publishing Division Revenue, 2009-2014 (£m) CAGR 5.0% Journals Books 2009 2010 2011 2012 2013 2014 INFORMA GROUP INVESTOR DAY NOVEMBER 2015 16
Slide 17: Academic Journals
ACADEMIC JOURNALS Chief Executive – Academic Publishing Division Roger Horton 17
Slide 18: Attractions of Academic Journals
ATTRACTIONS OF ACADEMIC JOURNALS MARKET Underlying growth in the number of researchers, R&D spend FUNDAMENTALS and number of research articles CONTENT Unique, must-have peer reviewed research articles PREDICTABLE High journal subscription renewal rates CASHFLOW Subscriptions typically paid annually
Slide 19: Informa Academic Publishing: Journals
INFORMA ACADEMIC PUBLISHING: JOURNALS 2014 £217m revenue 100% digital delivery REVENUE BREAKDOWN NO. OF JOURNAL TITLES 52% Humanities & >1,600 HSS Social Sciences >800 STM 48% Science, Technology & Medicine >3m articles available online >112k published in 2014 INFORMA GROUP INVESTOR DAY NOVEMBER 201
Slide 20: Journals: Growth Opportunities
JOURNALS: GROWTH OPPORTUNITIES 1. GLOBAL SALES EXPANSION ORGANIC 2. CONTINUED CONTENT GROWTH & SOCIETY CONTRACTS 3. OPEN ACCESS EXPANSION 4. TARGETED NICHE M&A INFORMA GROUP INVESTOR DAY NOVEMBER 2015 20
Slide 21: Continued Content Growth
2. CONTINUED CONTENT GROWTH 19 new subscription journals launched 2014 45 new contracts with academic societies and associations Articles published per year 120000 100000 80000 60000 40000 20000 0 2010 2011 2012 2013 2014 INFORMA GROUP INVESTOR DAY NOVEMBER 2015 21
Slide 22: Open Access Expansion
3. OPEN ACCESS EXPANSION >95% of subscription journals offer an open access option for authors 31 dedicated OA journals Cogent OA launched as a dedicated open access imprint Open Access articles published per year 2500 2000 1500 1000 500 0 2010 2011 2012 2013 2014 INFORMA GROUP INVESTOR DAY NOVEMBER
Slide 23: Academic Books
ACADEMIC BOOKS Managing Director – Books Jeremy North 23
Slide 24: Twenty Questions on Academic Books
TWENTY QUESTIONS ON ACADEMIC BOOKS 1 Is Academic Books market a growth market? 11 What is the risk or opportunity from Open Access in books? How competitive is the academic books market? Do publishers 2 Can you grow market share through volume expansion? 12 compete on price or just on content? How m
Slide 25: Five Answers on Academic Books
FIVE ANSWERS ON ACADEMIC BOOKS QUESTIONS ANSWERS We can and reassess the model regularly. But current model 5 Can you sell books on a subscription model? Why don’t’ you? 5 leverages the strength of our industry relationships Is there a tipping moment to come on physical books? If not, In the special
Slide 26: Attractions of Academic Books
ATTRACTIONS OF ACADEMIC BOOKS MARKET Underlying growth in the number of researchers, the level of FUNDAMENTALS R&D spend and number of students globally Both institutions and individuals – English language sells CUSTOMERS globally Reader subject focus for Upper Level study or work. SPECIALIST Specia
Slide 27: Informa Academic Publishing: Books
INFORMA ACADEMIC PUBLISHING: BOOKS 2014 £192m revenue 22% eBooks REVENUE BREAKDOWN NO. OF SUBJECT DISCIPLINES 68% Humanities & Social Sciences 40 HSS 32% Science, 20 STM Technology & Medicine >5,000 new books published in 2014 INFORMA GROUP INVESTOR DAY NOVEMBER 2015 27
Slide 28: Books: Substantial Breadth and Depth
BOOKS: SUBSTANTIAL BREADTH AND DEPTH Publishing in key niches across Upper Level Education, high level Research & Reference, Professional and Vocational NICHE FOCUSED Specialist, not Mass Market INFORMA GROUP INVESTOR DAY NOVEMBER 2015 28
Slide 29: Digital Orientation and Customer-Led Output
DIGITAL ORIENTATION AND CUSTOMER-LED OUTPUT CREATION DELIVERY Digital origination & production: Print on Demand all new titles available as e-books (POD) Customers choose the format >70K titles CUSTOMER DEMAND • All new books have a digital print file 78% Printed • Lower risk and environmental impac
Slide 30: Books: Positioned for Continued Growth
BOOKS: POSITIONED FOR CONTINUED GROWTH 1. GLOBAL STRUCTURE, SCALE & EFFICIENCES ORGANIC 2. FLEXIBLE SALES MODEL 3. CONTENT GROWTH, BRANDS & RELATIONSHIPS 4. DISCOVERABILITY 5. TARGETED NICHE M&A INFORMA GROUP INVESTOR DAY NOVEMBER 2015 30
Slide 31: Global Structure, Scale & Efficiencies
1. GLOBAL STRUCTURE, SCALE & EFFICIENCES BOOKS GEO-SPREAD 47% North America 24% UK Selling into 140 countries 9% Cont. Europe 20% Rest of World Highly scalable and efficient infrastructure English Emerging US the language of Economies targeting untapped academia long-term growth niches INFORMA GROUP
Slide 32: Flexible Sales Model
2. FLEXIBLE SALES MODEL • Format neutral, content ownership & price control • Speed and mobility: digital delivery, print local, print-on- demand • Single titles, collections, consortia purchasing • Strong partnerships with resellers and aggregators • e-Book penetration, but print still robust • e-R
Slide 33: Content Growth, Brands and Relationships
3. CONTENT GROWTH, BRANDS AND RELATIONSHIPS ROBUST & GROWING CONTENT PORTFOLIO Scale consistency and reliability >110,000 Books Growth new books, new editions, M&A RESPONSIVE APPROACH • Community Identifying At the engagement niche & forefront of • Journals business emerging future • Academic discip
Slide 34: Discoverability: Unlock Full Value of Content
4. DISCOVERABILITY: UNLOCK FULL VALUE OF CONTENT >110K Discoverability and ‘semantic metadata’ books • Reinforcing content value across Books and Journals >1.5m chapters Integrated content management >110k systems supporting multiple formats e-books over next five • Digital investment in the ‘long t
Slide 35: Staying Ahead of the Market
STAYING AHEAD OF THE MARKET Chief Technology Officer Academic Publishing Max Gabriel 35
Slide 36: Digital Trends in the Academic Market
DIGITAL TRENDS IN THE ACADEMIC MARKET AUTHORS INSTITUTIONS READERS Need for Shift towards Flexibility of • Integrated workflow • Demand driven purchase • Seamless access • Collaborative research • Usage based pricing • Choice of formats • Career Management • Integrated platform • Multiple screens A
Slide 37: Digital Thinking within Academic Publishing
DIGITAL THINKING WITHIN ACADEMIC PUBLISHING Digital foundation Digital acceleration Digital future • Customer • Academic • Content delivery engagement Services • Editorial to • Content • Prescriptive Production discoverability Insights Building on the strong digital core foundation, we are accelerat
Slide 38: Further Digitisation Opportunities
FURTHER DIGITISATION OPPORTUNITIES CONTENT DISCOVERABILITY CUSTOMER ENGAGEMENT DIGITAL SERVICES Content Management Author Experience Author Services Dynamic Taxonomy Digital Marketing Open Access Intelligent Search Customer Insights Collaborative tools Drives usage, improves customer interactions, c
Slide 39: The Journey from Online to Digital
THE JOURNEY FROM ONLINE TO DIGITAL ONLINE DIGITAL • Replication of print • Discoverability and access • Targeted Marketing • Collaborative engagement • Content adoption • Driving usage • Online analytics • Actionable insights • Publishing value chain • Digital ecosystem INFORMA GROUP INVESTOR DAY NO
Slide 40: Summary and Q&A
SUMMARY AND Q&A INFORMA GROUP INVESTOR DAY NOVEMBER 2015 40
Slide 41: Summary – Academic Publishing Key Takeaways
SUMMARY – ACADEMIC PUBLISHING KEY TAKEAWAYS Market Position Management Robust market offering A major academic publisher Highly experienced team consistent long-term growth with highly efficient, with long-term industry commercial approach relationships Unique Verticals Digital Specialist in all we
Slide 42: Unique Approach and Commercial Focus
UNIQUE APPROACH AND COMMERCIAL FOCUS 8 PILLARS OF ACADEMIC PUBLISHING DIVISION 1. BRANDS 5. INTERNATIONAL 2. SPECIALIST Long-term, 6. RELATIONSHIPS committed relationship 3. COMMERCIAL with 7. ACQUISITONS academic community 4. EFFICIENCY 8. QUALITY INFORMA GROUP INVESTOR DAY NOVEMBER 2015 42
Slide 43: Global Exhibitions
2015 Informa Investor Day GLOBAL EXHIBITIONS Charlie McCurdy Chief Executive, Global Exhibitions Division NOVEMBER 2015
Slide 44: Maximising the Growth Opportunity
GLOBAL EXHIBITIONS Maximising the growth opportunity • Global Exhibitions Overview • International Construction & Real Estate • Global Health & Nutrition Network • Q&A
Slide 45: Why Informa?
WHY INFORMA? Compelling Unique position in a High performing yet value-creation great industry under-developed opportunity • Strong mix of talent • Growth ahead of market – • Primedia > Canon > GLM • International reach the Challenger Operator • Innovation > Transformation • Powerful brands • Strong
Slide 46: Informa: The Challenger Operator
INFORMA: THE CHALLENGER OPERATOR Rest of World Middle East & Africa Americas CAGR 32% 2009 exhibition revenue: 2014PF* exhibition revenue: • <$100m in total • >$380m in total • <1% in Americas • c50% in Americas 2009 2014PF* Strong track record of organic and acquired growth: the Challenger Operator
Slide 47: Attractive Exhibition Dynamics
ATTRACTIVE EXHIBITION DYNAMICS Exhibition Market Dynamics Exhibition Business Dynamics • Large and growing market • Significant barriers to entry • Global reach and potential • High visibility of recurring revenues • Highly fragmented structure • Attractive margins • Structural beneficiary of digiti
Slide 48: Exhibitions Industry Themes
EXHIBITIONS INDUSTRY THEMES PRICING Evolution of tiered and value-based pricing Increasing value of data and growing prevalence DATA of data-driven decision-making DIGITAL The potential value of integrated digital strategies Platform acquisitions within verticals/regions for EXPANSION creation of ve
Slide 49: Informa's Global Exhibitions Division
INFORMA’S GLOBAL EXHIBITIONS DIVISION The commercial power of face-to-face media C170 exhibitions, 800 people Portfolio distribution 120 80 40 43% 41% 0 16% £m <£1m £1-10m >£10m Individual Exhibition revenue (NB Constant FX and excludes ancillary revenue) Revenue by type Revenue by geography 36% Nor
Slide 50: From Exhibition Organizer to Market Maker
FROM EXHIBITION ORGANIZER TO MARKET MAKER A Market Maker’s performance can exceed an exhibition organiser Deep customer engagement and integrated value proposition Investment in digital and data capabilities Create and manage vertical markets globally (where possible) INFORMA GROUP INVESTOR DAY NOVE
Slide 51: First 100 Days: Seize the Opportunity
FIRST 100 DAYS: SEIZE THE OPPORTUNITY Secure 2015 revenue and operating profit Prepare 2016 budget Create Year 1 action plan to drive positive change Develop 3-5 year strategy with leadership team Visit all major offices worldwide Prioritise 2016-2017 exhibition launches Define acquisition prioritie
Slide 52: Global Exhibitions: Verticals and Geographies
GLOBAL EXHIBITONS: VERTICALS AND GEOGRAPHIES Regions £m Verticals £m North America Construction & Real Estate Life Sciences Middle East & Africa Beauty & Aesthetics Europe inc UK Health & Nutrition Latin America Food Asia Luxury Other Pop Culture INFORMA GROUP INVESTOR DAY NOVEMBER 2015 *Charts are
Slide 53: Construction & Real Estate (ICRE)
CONSTRUCTION & REAL ESTATE (ICRE) President - ICRE, Global Exhibitions Rick McConnell 53
Slide 54: Global Construction & Real Estate at Informa
GLOBAL CONSTRUCTION & REAL ESTATE AT INFORMA • Growing international portfolio • Leading brands within regions and sub-sectors • >35 Exhibitions globally including 12 US shows • >750k attendees annually • >250k sqm exhibition space annually • >$100m revenue annually Quality and breadth creates uniqu
Slide 55: Construction & Real Estate: US Macro Trends
CONSTRUCTION & REAL ESTATE: US MACRO TRENDS Residential Commercial • Strong upward trend in US residential construction • Non-residential building growth in 2015 and 2016 • Job growth, improved credit worthiness and • Strong US growth in healthcare, education facilities, continued low mortgage rates
Slide 56: Construction & Real Estate: Exhibitions Market
CONSTRUCTION & REAL ESTATE: EXHIBITIONS MARKET Fastest growing US exhibition sector in H1 2015 Second largest exhibition sector globally, after Automotive Accounts for c.9% of the global market as measured by exhibition space 11.8% 4.5% 75% of the top 250 shows in North America are owned by associat
Slide 57: Becoming a Market Maker in Construction & Real Estate
BECOMING A MARKET MAKER IN CONSTRUCTION &REAL ESTATE Digital enhancement of Strengthen the core core shows DIGITAL & DATA CAPABILITY BUILD A GLOBAL VERTICAL Build alliances with associations and Collect and exploit data strategic partners Leverage the Informa Leverage mobile C&RE network platforms L
Slide 58: Summary – Global Construction & Real Estate
SUMMARY – GLOBAL CONSTRUCTION & REAL ESTATE 1 Large industry at a healthy point in the cycle 2 Strong brands and market positions within the Informa portfolio 3 Strengthen the core and leverage Informa network to build global vertical 4 Digital capability to strengthen market position and deepen rel
Slide 59: Global Health and Nutrition (GHNN)
GLOBAL HEALTH AND NUTRITION (GHNN) President – GHNN, Global Exhibitions John Siefert INFORMA GROUP INVESTOR DAY NOVEMBER 2015 59
Slide 60: Global Health & Nutrition Network at Informa
GLOBAL HEALTH & NUTRITION NETWORK AT INFORMA • Leading brands in the US and Europe • Growing global network • 7 Exhibitions globally • Over 40k attendees annually • Over 40k sqm exhibition space annually • Over $25m revenue annually Leading player in the Health & Nutrition vertical INFORMA GROUP INV
Slide 61: Global Health & Nutrition: Market Backdrop
THE GLOBAL HEALTH & NUTRITION: MARKET BACKDROP Broad, deep and fast-growing market comprising food, beverages and supplements that provide medicinal or health benefits; ‘functional foods’ By market By need Market predicted to exceed $240bn by 2019 Food Formulation Beverage Ingredients Supplements Pa
Slide 62: Global Health & Nutrition: Market Drivers
THE GLOBAL HEALTH & NUTRITION: MARKET DRIVERS CONSUMER Growing consumer interest in personalised health DEMAND solutions, sports nutrition and ‘free from’ food GOVERNMENT Growing public sector support through subsidies North America and Asia-Pacific account for 67.7% of GEOGRAPHY market (2013) Forec
Slide 63: Global Health & Nutrition Network at Informa
GLOBAL HEALTH & NUTRITION NETWORK AT INFORMA Who Attends? Who Exhibits? INFORMA GROUP INVESTOR DAY NOVEMBER 2015 63
Slide 64: Becoming a Market Maker: Global Vertical
BECOMING A MARKET MAKER: GLOBAL VERTICAL “The integration of SupplySide and INSIDER within the Informa structure will give the company the ability to effectively create a global footprint that can dwarf the competition in the Health and Nutrition space.” GREG RIS, INDENA Strengthen the core BUILD A
Slide 65: Becoming a Market Maker: Digital & Data
BECOMING A MARKET MAKER: DIGITAL & DATA Ladder of Engagement Audience Nurturing Expo Hall Pass Global Pass Web Registration Education Pass Initial Page View Expo Hall Pass Contextual Promotion Web Registration Multiple Page Views 60k website members 66k monthly unique visitors Initial Page View 164k
Slide 66: Becoming a Market Maker: Digital & Data
BECOMING A MARKET MAKER: DIGITAL & DATA SupplySide Storefronts Launch July 2015 64 sponsor companies $600k+ revenue • $5-15k sponsor cost • 1100 exhibitors • Target 25% participation • Incremental revenue • High margin INFORMA GROUP INVESTOR DAY NOVEMBER 2015 66
Slide 67: Summary – Health & Nutrition
SUMMARY – HEALTH & NUTRITION 1 Large global industry forecast for continued strong growth 2 Informa owns the leading European and US brands 3 Build a global vertical by encompassing the market and leveraging Informa platform 4 Ladder of engagement provides customer insight, builds audiences and enga
Slide 68: Summary and Q&A
SUMMARY AND Q&A INFORMA GROUP INVESTOR DAY NOVEMBER 2015 68
Slide 69: Summary – Global Exhibitions Key Takeaways
SUMMARY – GLOBAL EXHIBITIONS KEY TAKEAWAYS Market Position Management Structural growth in Informa is the Challenger Highly experienced Exhibitions Operator, quadrupling in individuals with potential to size over five years become an All-Star team Unique Verticals Digital International portfolio of
Slide 70: Strong Visibility into 2016
STRONG VISIBILITY INTO 2016 January February March April May June July August September October November December INFORMA GROUP INVESTOR DAY NOVEMBER 2015 70
Slide 71: Lindsay Roberts, Greenbuild Show Director
Lindsay Roberts, Greenbuild Show Director Global Exhibitions Division
Slide 72: Introduction to Greenbuild
INTRODUCTION TO GREENBUILD The world’s largest event dedicated to sustainable building and design Launched in 2002 by the US Green Aim to promote education and LEED* Building Council (USGBC) building standards Now the premier event for Strategic partnership between USGBC Sustainability, Green Constr
Slide 73: Who Attends Greenbuild?
WHO ATTENDS GREENBUILD? INFORMA GROUP INVESTOR DAY NOVEMBER 2015 73
Slide 74: Strong Growth through Its 14 Year History
STRONG GROWTH THROUGH ITS 14 YEAR HISTORY… >1600 exhibitions booths c.200 conference sessions GREENBUILD 2014: NEW ORLEANS >17,500 attendees GREENBUILD 2013: PHILADELPHIA GREENBUILD 2012: SAN FRANCISCO GREENBUILD 2011: TORONTO GREENBUILD 2010: CHICAGO 220 exhibitions booths 80 conference sessions c.
Slide 75: Continuing into Greenbuild 2015
…CONTINUING INTO GREENBUILD 2015 500+ 150,000 20,000 exhibiting companies square foot covered estimated attendance 7000 c.90 18 conference attendees countries represented international delegations 34 44 >$10m association partners media partners revenue INFORMA GROUP INVESTOR DAY NOVEMBER 2015 75
Slide 76: Sustainability Ethos at the Heart of the Show
SUSTAINABILITY ETHOS AT THE HEART OF THE SHOW Greenbuild 2014 became the largest US conference to become Green-e certified for carbon offsets 78% of waste diverted from landfills Overhaul of venue’s waste system, compared to venue average of 11% including first-time composting Sustainable food sourc
Slide 77: The Future for Greenbuild
THE FUTURE FOR GREENBUILD • Growing importance, recognition and value of Sustainability issues • Continue to strengthen the brand and develop a global network • Leverage digital and data capability to build audience and engagement • Strong schedule of future locations for Greenbuild across Tier 1 US
Slide 78: Tour of Greenbuild
TOUR OF GREENBUILD INFORMA GROUP INVESTOR DAY NOVEMBER 2015 78
Slide 79: Business Transformation
2015 Informa Investor Day BUSINESS TRANSFORMATION Alex Roth Director of Strategy & Planning NOVEMBER 2015
Slide 80: Business Transformation Update
BUSINESS TRANSFORMATION UPDATE Strategy Execution Providing specialist knowledge on niche subjects to expert, global communities INFORMA GROUP INVESTOR DAY NOVEMBER 2015 80
Slide 81: Transformation Update: Informa Group
Transformation Update: INFORMA GROUP Growth Acceleration Plan 1 2 3 4 5 6 GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy • Establishment of • Installation of • Determination of • Enhanced • Launch of • Refinancing of market-f
Slide 82: Transformation Update: Business Intelligence
Transformation Update: BUSINESS INTELLIGENCE Point of Departure Mission • Revenue in decline • Restore growth • Vertically integrated, stand-alone • Build platform to support scale operating units • Underutilised brands INFORMA GROUP INVESTOR DAY NOVEMBER 2015 82
Slide 83: Transformation Update: Business Intelligence
Transformation Update: BUSINESS INTELLIGENCE Operating GAP Leadership Operations Portfolio Model Investment • Consolidation of • New management • Subscription-driven • Restructuring of • Insight platform business information team sales excellence the portfolio assets • Intelligence platform • Functi
Slide 84: Transformation Update: Knowledge & Networking
Transformation Update: KNOWLEDGE & NETWORKING Point of Departure Mission • Stand-alone operating units • Improve growth, and drive margins • Industry average margins • Transition from traditional format • Traditional product to community-based, multi- format experience INFORMA GROUP INVESTOR DAY NOV
Slide 85: Transformation Update: Knowledge & Networking
Transformation Update: KNOWLEDGE & NETWORKING Operating GAP Leadership Operations Portfolio Model Investment • Consolidation of • New management • Preliminary platform • Consolidation of • Digital marketing conference assets team rationalisation Australian events (including website, analytics, regis
Slide 86: Transformation Update: Academic Publishing
Transformation Update: ACADEMIC PUBLISHING Point of Departure Mission • Leadership position in HSS; • Secure and accelerate future strong relationship with growth Academic community • Migrate from online to digital • Production efficiency and benchmark profitability • Digitised production process IN
Slide 87: Transformation Update: Academic Publishing
Transformation Update: ACADEMIC PUBLISHING Operating GAP Leadership Operations Portfolio Model Investment • Extension of digital • CTO • Integrated market • Consolidation and • Taxonomy and mandate intelligence unit integration of medical discoverability journals • OA acceleration • Content delivery
Slide 88: Transformation Update: Global Exhibitions
Transformation Update: GLOBAL EXHIBITIONS Point of Departure Mission • High growth • Maintain above-average industry growth • Not participating in USA (ie largest segment of market) • Build scale in key verticals and geographies • Stand-alone operating units INFORMA GROUP INVESTOR DAY NOVEMBER 2015
Slide 89: Transformation Update: Global Exhibitions
Transformation Update: GLOBAL EXHIBITIONS Operating GAP Leadership Operations Portfolio Model Investment • Orientation around • New CEO • Consolidation of North • Establishment of • Visitor campaign industry verticals American operations position in USA management • Formulation of management team •
Slide 90: Transformation Update: M&A
Transformation Update: M&A • Capital allocation by Division Strategy • Capital objectives, aligned to scale of investment • Strict, upfront application of strategy filter Business Development • Deployment of business development capability • Refinement of acquisition criteria Execution • Pursuit of
Slide 91: How We Manage
HOW WE MANAGE Division Architectural Senior Review Board Management Teams Enhanced Business Management Planning Reporting Design Executive Authority / Management Capital Team Committee People, Product, Platform Reviews INFORMA GROUP INVESTOR DAY NOVEMBER 2015 91
Slide 92: Changing Business Characteristics
CHANGING BUSINESS CHARACTERISTICS 4 13 34% 30% 22% Reporting Structures (January 2014 v today) 36% US Revenues Conferences Revenues (2009 v 2014PF) 47% none 4 (2009 v 2014PF) Market Position in US Exhibitions (January 2014 v today) 59% Renewals / Recurring Revenue (2009 v 2014PF) INFORMA GROUP INVES
Slide 93: Moving Forward…
MOVING FORWARD… • Structure configured against the markets that we serve • Clear accountability for responsibilities • Priority markets: products; customers; geographies • Rigorous organic and inorganic investment programmes • Institution of business processes, and … • Introduction of scalable platf
Slide 94: Improving Financial Discipline
2015 Informa Investor Day IMPROVING FINANCIAL DISCIPLINE Gareth Wright Group Finance Director NOVEMBER 2015
Slide 95: Improving the Level of Financial Discipline
IMPROVING THE LEVEL OF FINANCIAL DISCIPLINE More Effective Controls GAP On Track Strengthened Corporate STRENGTH Clear Revenue Visibility Position STABILITY Increased Financial Balance Sheet Strength FLEXIBILITY Operating Focus Improving Return on Increased Cash Flow Investment Focus INFORMA GROUP I
Slide 96: Clear Revenue Visibility
CLEAR REVENUE VISIBILITY • High proportion of recurring revenue • Majority is forward booked • Sales - Deferred Income - Revenue 2014PF • Long-term organic growth horizon SUBSCRIPTIONS 39% FY 2014 FY 2015 EXHIBITORS 20% FY revenue £1,137m £1,218m COPY SALES 18% ATTENDEES 15% Previous Y/End deferred
Slide 97: Increased Financial Operating Focus
INCREASED FINANCIAL OPERATING FOCUS • Divisional CFO appointments AP BI GE K&N CEO CEO CEO CEO • Closer challenge of Divisions • Leveraging new operating model AP BI GE K&N CFO CFO CFO CFO • Scale the back office • Challenging cost effectiveness • Group and Divisional procurement Group CFO Cost effi
Slide 98: Increased Cash Flow Focus
INCREASED CASH FLOW FOCUS H1 2015 Free Cash Flow £m • Divisional CFO cash flow focus • LTM free cash flow +29% • Improvement in FCF > increase in OP • Attractive free cash flow yield 116.4 • Flexibility for reinvestment 64.7 H1 2014 OP Working Tax Capex Other H1 2015 Capital Consistent strong cash c
Slide 99: Improving Return on Investment
IMPROVING RETURN ON INVESTMENT Group ROI (%) • Divisional understanding and focus • Objective to improve ROI over time 9.0 o Near-term GAP investment to drive 8.5 operational performance 8.0 o Close/dispose underperforming assets o Focused capital investment 7.5 • Targeted acquisition strategy 7.0 2
Slide 100: Balance Sheet Strength
BALANCE SHEET STRENGTH Maturity Profile 450 • Increased Funding flexibility 400 o RCF refinanced 350 300 o $250m PPP notes 250 • Leverage at low end of 2-2.5x range 200 • Minimum GAP Dividend commitment 150 100 • Zero pension deficit 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bank L
Slide 101: Strengthened Corporate Position
STRENGTHENED CORPORATE POSITION Clearance of outstanding Re-domicile to UK tax items Low effective rate and Relocation and strengthened lower cash tax rate Treasury function Simplified corporate legal structure INFORMA GROUP INVESTOR DAY NOVEMBER 2015 101
Slide 102: More Effective Control
MORE EFFECTIVE CONTROL Expanded risk Non-financial metrics management function Proactive management Business planning process of Group assets Robust framework and control mechanisms reduce risk and increase effectiveness INFORMA GROUP INVESTOR DAY NOVEMBER 2015 102
Slide 103: Growth Acceleration Plan on Track
GROWTH ACCELERATION PLAN ON TRACK GAP Investment • GAP Investment tracking at £70-90m • 21 workstreams underway £70-90m • £29m approved to invest • Year 1 spend likely bottom-end of range • GAP forecast ROI unchanged Estimated Year 1 Investment GAP Investment Programme remains on track INFORMA GROUP
Slide 104: Improving the Level of Financial Fitness
IMPROVING THE LEVEL OF FINANCIAL FITNESS More Effective Controls GAP On Track Strengthened Corporate STRENGTH Clear Revenue Visibility Position STABILITY Increased Financial Balance Sheet Strength FLEXIBILITY Operating Focus Improving Return on Increased Cash Flow Investment Focus INFORMA GROUP INVE
Slide 105: Summary and Q&A
SUMMARY AND Q&A STEPHEN A. CARTER GROUP CHIEF EXECUTIVE
Slide 106: Five Things You Did Not Know… about Academic Publishing
FIVE THINGS YOU DID NOT KNOW… …about Academic Publishing 1. How many T&F books and journal articles were downloaded while I read this question? 2. How long would it take you to read all the articles on Taylor & Francis Online? 3. How many times would the authors writing for T&F journals each year se
Slide 107: Five Things You Did Not Know… about Global Exhibitions
FIVE THINGS YOU DID NOT KNOW… …about Global Exhibitions 1. What % of all the countries in the world were represented at Arab Health 2015? 2. How much did Rupert Grint charge for an autograph at FanExpo 2015? 3. What was the average revenue generated by 2015 SupplySideWest participants expected to be
Slide 108: Five Things to Remember about Informa
FIVE THINGS TO REMEMBER ABOUT INFORMA Over 55% of revenue is recurring and booked in 1. VISIBILITY advance Fastest growing Exhibition group, quadrupling revenue 2. EVENTS over last 5 years Over 40% of revenue is now generated in North 3. INTERNATIONAL America High margins, positive working capital a
Slide 109: 2015 Informa Investor Day
2015 Informa Investor Day 18 November 2015
Slide 110: Appendix
PULIOJUI APPENDIX
Slide 111: Background: Jeremy North
BACKGROUND: JEREMY NORTH 2004 - 2015 Managing Director – Books Academic Publishing Division, Informa • Threefold revenue growth • Creation of one of the first globally integrated publishing businesses 1992 – 2004 Joined Routledge publishing company, part of Thomson Corporation Positions in: • Academ
Slide 112: Background: Max Gabriel
BACKGROUND: MAX GABRIEL 2015 Chief Technology Officer - Academic Publishing Division, Informa PLC 2011 – 2014 Chief Technology Officer – Pearson India & Africa, Pearson plc The world’s largest education services company • Responsible for digital transformation • Successful launch of first tablet-bas
Slide 113: Background: Charles G. McCurdy
BACKGROUND: CHARLES G. McCURDY 2015 CEO, Global Exhibitions Division, Informa Chairman, Society of Independent Show Organisers 2011 – 2014 CEO, George Little Management Top five independent US trade show organiser • Acquired with Providence Equity for $173 million • Grew revenue and EBITDA 50% • Sol
Slide 114: Background: Rick McConnell
BACKGROUND: RICK McCONNELL 2015 President - International Construction & Real Estate President - Informa Canada Global Exhibitions Division, Informa 2010 – 2015 Chairman and Board Member, Society of Independent Show Organizers Leading face-to-face industry association globally 2001– 2014 President,
Slide 115: Background: John Siefert
BACKGROUND: JOHN SIEFERT 2015 President, Global Health and Nutrition Network, Global Exhibitions Division, Informa 2010 – 2014 Chief Executive, Virgo Leading diversified exhibitions and media group • Grew organic revenue by 35% • Acquired by Informa in 2014 1995– 2010 Senior VP, UBM InformationWeek
Slide 116: Background: Alex Roth
BACKGROUND: ALEX ROTH 2014 Director of Strategy & Business Planning 2007 – 2014 Partner, Bain & Company Global strategy consultancy • TMT specialist • Innovation and growth • Private equity due diligence and portfolio restructuring 2001 – 2007 Partner, Monitor Group Global strategy consultancy INFOR
Slide 117: Disclaimer
DISCLAIMER These materials are being supplied to you by Informa PLC (“Informa”) solely for your information and for use at this presentation. All numbers and charts included in this presentation are from Informa data unless specified otherwise. These materials may not be reproduced in any form, redi
Slide 118: Informa PLC contact details
5 Howick Place London SW1P 1WG +44 (0)20 7017 5000 info@informa.com informa.com