Slide 1: 2021 Interim Results
2021 Interim Results 19 May 2021
Slide 2: Organic growth underpins strong momentum
Record engagement as we Continued strong meet our audiences’ needs revenue growth 311m online users Double digit organic revenue +31% YoY* growth, with media organic revenue growth of +30% Organic growth underpins strong momentum : Platform effect resulting in Strategy continues to deliver, Strategy
Slide 3: Financial Review
Financial Review 3
Slide 4: Record results: financial highlights for the six months to March 2021
Record results: financial highlights for the 6 months to 31 March 2021 Revenue Adj. Operating Adj. Free Cash £272.6m profit £89.2m Flow £93.9m +89% +124% +135% Organic revenue Adj. diluted Net debt growth EPS 65.4p £241.3m +21% +99% 1.3x Leverage 4 See appendix for definitions
Slide 5: Adding another set of strong results to our track record
Adding another set of strong results to our track record REVENUE ADJUSTED OPERATING PROFIT +157% CAGR +55% CAGR £m £m ADJUSTED FREE CASH FLOW ADJUSTED DILUTED EPS +92% CAGR +126% CAGR £m £m 5 See appendix for definitions
Slide 6: Revenue: reported growth underpinned by strong organic growth
Revenue: reported growth underpinned by strong organic growth Revenue Gross contribution Strong organic growth complemented by contribution HY 2021 Reported Organic £m growth growth from acquisitions Media 182.6 +59% +30% 85% Media continuing to perform strongly across the segments (excluding events
Slide 7: Media: strong momentum across key revenue sub-segments
Media: strong momentum across key revenue sub-segments Digital ads up +30%, with high yielding HY 2021 HY 2020 Reported Organic £m £m growth growth directly sold advertising increasing Digital ads on platform 69.5 47.8 +45% +30% Strong digital ads off platform performance on email newsletters and AV
Slide 8: Magazines: improving trend
Magazines : improving trend HY 2021 HY 2020 Reported Organic £m £m growth movement Newstrade 42.2 10.8 +291% (17%) Newstrade trends have improved from prior year Q4 exit rates. Inorganic portfolio Subscriptions 22.8 8.0 +185% 2% (comprising weekly frequency titles and strong grocery/independent stor
Slide 9: GoCo reporting: mapping into Future segmentation
GoCo reporting: mapping into Future segmentation Improving performance Proforma since acquisition H1 2021 proforma Segment mapping H1 2021 since Growth H1 2021 Growth ● GoCompare: overall revenue growth acquisition Oct-Mar despite the loss of travel insurance % % £m £m Price Comparison as a result o
Slide 10: Driving profitable growth by design
Driving profitable growth by design Continuous improvement in profitability is supported by: Revenue mix Platform effect Scalable business model Revenue by segment Sales, marketing and editorial costs Overhead costs as a % of revenue as a % of revenue % of revenue Magazines division accounts for 33% M
Slide 11: Continued momentum driving improved margin
Continued momentum driving improved margin £m HY 2021 HY 2020 YoY Var Revenue 272.6 144.3 +89% GC margin dilution of (4)ppt due to Gross contribution1 209.8 117.5 +79% higher weighting of magazine revenue post TI acquisition (33% in GC margin 77% 81% (4ppt) HY 2021 vs 20% in HY 2020) Sales, marketin
Slide 12: Cash flow demonstrating strong conversion of profits
Cash flow demonstrating strong conversion of profits £m HY 2021 HY 2020 Adjusted cash generated before changes Adjusted free cash flow up +135% yoy to £93.9m, translating in working capital and provisions 1 98.1 41.3 to conversion3 of 105% Adjusted movement in working capital (0.1) 0.9 and provisions C
Slide 13: Consistent strong cash generation enables fast de-levering
Consistent strong cash generation enables fast de-levering 1.3x leverage GoCo deal fees (10.1) GoCo restructuring (1.3) 0.6x TI restructuring (2.6) leverage Vacant property (1.3) 105% conversion Mozo (15.2) CinemaBlend (9.9) ● Debt facilities include a two-year term loan of £215m and RCF of £135m ●
Slide 14: Capital allocation enables efficient value creation cycle
Capital allocation enables efficient value creation cycle Revenue mix Platform effect Scalable business model OPERATING MARGIN Strict capital allocation focused on GROWTH value creation and returns, with +30ppt CAGR 2016-2021 4 priorities: Asset light Organic investment to support 1 the ongoing growt
Slide 15: Strategy & business update
Strategy & business update 15
Slide 16: Our strategy continues to deliver
Our strategy continues to deliver Future is a global platform for intent- led specialist media underpinned by technology, enabled by data; with diversified revenue streams We help people to do the things that matter in their life, our content and brands give them a place they want to spend their time
Slide 17: A strategy that delivers
A strategy that Organic revenue growth from volume delivers (users) & yield (RPU) Contain costs Underpinned by as we scale Convert to cash 3 core pillars to reinvest Our legacy media brands are the fuel that drives our engine, realising the platform effect from historic acquisitions, and identifying
Slide 18: Execution of strategy through organic growth
Execution of strategy through organic growth 18
Slide 19: Our strategy is centred around meeting our audience's needs
Our strategy is centred around meeting our audience’s needs Google algorithm updates 419m Total audience reach* 311m Online users* 1 in 3 Online reach** in H1 2021 11 #1 verticals in market, +7% YoY vs FY 2020 +31% YoY VS H1 2020 4x more than in FY 2018 with 29 no.1 brands*** 19 * Audience reach inc
Slide 20: Sustainable double digit organic user growth
Our continued focus on audience delivers sustainable double digit organic user growth 19% CAGR since 2017 +24% CAGR +26% CAGR +22% CAGR +253% CAGR 20 Source: Google Analytics
Slide 21: Case Study: GamesRadar+ and Louder
Consistent long term audience growth translates to revenue: Case Study GamesRadar+ and Louder GamesRadar+ media revenue and online users Louder media revenue and online users +59% CAGR online users +42% CAGR online users +87% CAGR media revenue +83% CAGR media revenue GamesRadar+ was launched in 199
Slide 22: Engaged endemic audiences delivering growth in on site digital advertising
Engaged endemic audiences delivering 45% growth in on site digital advertising, 30% organic Audience Premium quality audiences: Our deep understanding of our audience needs, 67% Aperture Audience Platform Customer Data Platform coupled with our Aperture data platform Top 30 accounts in US and ongoin
Slide 23: Engaged audiences with intent deliver growth in eCommerce
Engaged audiences with intent deliver 116% growth in eCommerce, 56% organic Acceleration of eCommerce: The impact of COVID-19 has seen an increase in retailers 95% B2C weekly revenue* Increase in merchants online, this has enabled us to broaden our making sales via Future offering to customers, with
Slide 24: Execution of strategy through platform effect
Execution of strategy through platform effect 24
Slide 25: Platform delivers consistent track record
Execution of our strategy through the platform delivers consistent track record Characteristics of the group, makes it designed for consistent double digit growth +47% CAGR +69% CAGR +19% average organic +24% average organic +157% CAGR 25 Source: Google Analytics for online users Includes sales,mark
Slide 26: Growth through platform effect: evergreen content
Growth through platform effect Evergreen content results in article led revenue compounding over time, as the back catalogue underpins a base level of revenue 26 Total Revenue - All Sites Excl. MoNa - Stacked by Creation Financial Year
Slide 27: Platform effect underpinned by ongoing sustainable investment
Growth through platform effect underpinned by ongoing sustainable investment CAGR S&W +47% CAGR headcount +44% ● Ongoing investment in editorial to ensure that growth is sustainable in longer term, focus of investment both in new brands and investing in the core ● Material new investment in editoria
Slide 28: Centres of excellence & low cost location strategy
Growth through platform effect Centres of excellence & low cost location strategy drives capability and returns Over last 4 years we have invested in technology engineering as a core enabler to growth in the business. In H1 we launched; ● Aperture our customer audience data platform ● Kiosq our new
Slide 29: Accelerating the execution through acquisitions
Accelerating the execution through acquisitions 29
Slide 30: Acceleration of strategy via M&A
Acceleration of strategy via M&A The right acquisition for Future is one we believe can uniquely create additional value while accelerating our strategy Ability to add value Clear criteria Speedy integration Use data and analytics to identify Clear investment criteria focussing Integrate rapidly and
Slide 31: Accelerating the execution of core pillars from acquisitions
Accelerating the execution of 3 core pillars from acquisitions Over last 5 years our acquisitions have facilitated our strategy, adding new capabilities to legacy brands, diversifying audiences into new high value verticals and facilitating an acceleration in market leadership positions. We segment
Slide 32: TI Media: momentum building underpinned by platform
TI Media Momentum building underpinned by platform 1. Driving significant increase in audience 1 2. Benefits of the platform 1,2 1 Media revenue growth Online users growth Online users (m) Marie Claire +35% +26% 3.5 Ideal Homes +44% +65% 2.9 HY 2021 YoY: +28% Wallpaper +36% +16% 1.0 March: +54% Cyclin
Slide 33: TI Media delivering on strategy through growth in new verticals
TI Media delivering on strategy through growth in new verticals 1 Leveraging existing brands 2 Leveraging existing content ● Online users growth +26% ● Migrated to Vanilla in November 2020 ● New launch in July 2020 - utilising ● Media revenue growth +35% ● Online users growth +45% content expertise
Slide 34: GoCo update: integration is well underway
Accelerating through acquisition GoCo update Integration is well underway, enabling focus to shift to revenue realisation Transaction Recap ● Acquired GoCo Plc on 17 Feb 2021; Total enterprise value of £629m ● Initial expectation £10m recurring cost synergies, 47% cost to deliver. Upgrading savings
Slide 35: Significant progress on investment thesis
Accelerating through acquisition GoCo update Significant progress on investment thesis 1. Lower customer 2. Increase diversification and acquisition costs global opportunities Successful trials ran during February-March for GoCompare of Working teams set up across Mozo & GoCo to collaborate, marketing
Slide 36: Significant progress on investment thesis
Accelerating through acquisition GoCo update Significant progress on investment thesis 3. Grow the addressable market 4. New vertical a. SEO now represents the biggest revenue b. GoCompare SEO shows the biggest positive yoy Personal & Home generating channel for MVC, reducing reliance movement of all
Slide 37: Delivering sustainable growth as a responsible business
Delivering sustainable growth as a responsible business 37
Slide 38: We operate as a responsible business
We operate as a responsible business Today we are a purpose-driven organisation creating value for all our stakeholders Environment Governance We strive to positively impact our environment and Average tenure of the Board is under 3 years minimise harm to our planet. Initiatives include: Board diver
Slide 39: We commit to publishing our ESG strategy
We operate as a responsible business Over the next 6 months, we commit to publishing our ESG strategy with clear targets where applicable for the next 5 years Social Society & Community: Employees: # employees globally ● Future Foundation social mobility ● Health & Safety (physical & mental) is a ke
Slide 40: Summary
Summary 40
Slide 41: Summary & Outlook
Summary & Outlook Continuation of very strong growth Ongoing excellent conversion of across all metrics in H1 underpinned profits into cash and continued by the ongoing strength of our balance sheet strength organic business GoCo acquisition progressing well, While we remain cautious around with all
Slide 42: Future
42 FUTURE
Slide 43: Appendix
Appendix > FuTURE
Slide 44: Revenue segmentation
Revenue segmentation HY 2021 March 2021 Print ads & other Print ads & other Digital ads on platform Digital ads on platform Subscriptions Subscriptions Digital ads off platform Digital ads off platform Newstrade (email & AVOD) Newstrade (email & AVOD) Events, digital Events, digital licensing, other
Slide 45: Revenue breakdown by segments
Revenue breakdown by segments HY 2021 HY 2020 Reported Organic Organic growth HY growth growth * HY 2021 v HY HY 2021 v 2021 v HY Organic Inorganic Total Organic Inorganic Total 2020 HY 2020 2019 £m £m £m £m £m £m Digital ads on platform 60.4 9.2 69.5 47.8 - 47.8 +45% +30% +52% Digital ads off platf
Slide 46: GoCo reporting: mapping into Future segmentation
GoCo reporting: mapping into Future segmentation Proforma since acquisition H1 2021 proforma FY 2020 (Jan-Dec) Segment mapping H1 2021 since H1 2020 since H1 2021 H1 2020 2020 2019 £m Growth Growth Growth acquisition acquisition Oct-Mar Oct-Mar Jan-Dec Jan-Dec Price eCommerce Comparison 18.1 16.6 +9
Slide 47: Audience: top 10 organic and reported brands online users
Audience1 - Top 10 organic and reported brands online users Top 10 organic HY 2021 HY 2020- CAGR Top 10 reported HY 2021 HY 2020- CAGR brands Excl HY 2021 2019-2021 brands Excl HY 2021 2019-2021 millions Forums growth millions Forums growth TechRadar 47.4 +12% +24% TechRadar 47.4 +12% +24% GamesRada
Slide 48: Succeeding in an evolving landscape: high growth sectors
Succeeding in an evolving landscape We operate across high growth sectors OTT Video Operating in growing verticals Price Comparison “Online video is eroding linear TV advertising In 2020 US affiliate revenue from health & +41% Number of new cars registered in the UK in as platforms like Youtube becom
Slide 49: Markets with lots of growth opportunities
Succeeding in an evolving landscape We operate across markets with lots of growth opportunities ~29m¹ ~29m Cars insured in UK Homes in UK ~22m Homes insured ~ 75% customers use a PCW in UK to research at renewal (~20-23m cars) ~11m switches a year ~38% of market ~45% to 50% (the rest stay with exist
Slide 50: Operating model and quality audiences mean we lean into change
Succeeding in an evolving landscape operating model and quality audiences means we lean into change1 Change is commonplace within the Ads ecosystem fueled by technical innovation, privacy regulation Existing 1st party data available through and new business models. Some very recent Future customer d
Slide 51: Operating model and customer focus mean we lean into change
Succeeding in an evolving landscape operating model and customer focus mean we lean into change 1 What’s changing? What’s the impact? Opportunities for Future In Sept 2020 FCA published final report on While the FCA have not yet published their Regulation is a constant part of the General Insurance P
Slide 52: Highly scalable proprietary technology stack
Growth through platform effect ongoing investment in highly scalable proprietary technology stack Assets Websites Vanilla is our single modular web platform, Monetisation it has a single content management system Hawk is our our eCommerce service that Freelance Tech Services enables the monetisation
Slide 53: Key definitions
Key definitions 1st party cookie 3rd party cookie Identity vendor & user ID Text stored on the user's computer that is Text stored in the user's computer that is After Google released its plan to remove created by the website the user is visiting. created by a website with a domain 3rd party cookies,
Slide 54: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth defined as the portfolio at constant FX rates (i) excluding acquisitions and disposals made during FY 2020 and FY 2021 and (ii) including the impact of closures and new launches Financial notes ● Adjusted results are adjusted for share-based paymen
Slide 55: Sources & Definitions: market positions
Sources & Definitions Market positions ● Future Plc ranks #1 in the UK in the comScore Ranked Category 'News/Information - Technology News' ● Future Homes ranks #1 in the UK in the comScore Ranked Category Lifestyles - Home/Architecture ● Techradar ranks #1 in the UK in the Future Plc Consumer Tech C