Slide 1: Preliminary results FY 2020
Preliminary results FY 2020 25 November 2020 1
Slide 2: e we created ,
e we created , new events and we took many events virtual , we
Slide 3: Agenda
Agenda ● Overview ● FY 2020 financial review ● Progress against our strategy in FY 2020 ● Recommended offer for GoCo Group plc ● Summary & outlook 3
Slide 4: Continued strength of performance
01 Exceptional results, ahead of expectations... 02 Values led execution... ● Strong core values facilitated ● Group revenue up 53% to agile response to the rapidly £339.6m, underpinned by changing landscape acquisitions and media organic ● Operating leverage driving revenue growth of 23% adjusted o
Slide 5: Recommended offer for GoCo: creation of a leading global specialist media intent platform
Creation of a leading global specialist media intent platform 136p £594m Creating a leading global Headline price per Offer equity value GoCo share1 specialist media platform that drives intent, enabled by technology 76%:24% 33p in cash Shares : Cash consideration 81%:19% 103p in shares3 Recommended
Slide 6: Financial Review
Financial Review 6
Slide 7: Diversified business model
Diversified strategy delivers record results Diversified Resilient Integration of Continued business performance acquisitions strong model in ahead of track delivering challenging expectation record growth times 7
Slide 8: Financial KPIs demonstrating strong performance
Financial KPIs demonstrating strong performance Revenues Adj. Operating Adj Free Cash £339.6m profit £93.4m Flow £96.0m +53% +79% +79% Organic revenue Adj. diluted Net Debt £62.1m growth EPS 74.7p Leverage 0.6x +6% +57% 8 See appendix for definitions
Slide 9: Total Group performance Detailed P&L
Total Group performance Detailed P&L £m FY 2020 FY 2019 YoY Var Revenue 339.6 221.5 53% Gross contribution1 266.7 168.6 58% ● Strong Media revenue growth GC margin 79% 76% +3ppt benefits contribution margin performance by +3ppts Sales, marketing and editorial (103.3) (69.1) (50%) Margin after direct
Slide 10: Performance by segment and geography
Diversified model delivering growth: performance by segment and geography Revenue mix by revenue segment £m FY 2020 FY 2019 YoY Var Organic YoY Var Sept month 2020 Revenue Media 237.3 154.9 53% 23% Magazines 102.3 66.6 54% (29%) Total 339.6 221.5 53% 6% Magazines Gross contribution1 35% Media 203.9 1
Slide 11: Total Group performance by sub-segments
Diversified model delivering growth: total Group performance by sub-segments £m FY 2020 FY 2019 YoY Variance Organic YoY Var Revenue Mix Sept month 2020 1% Digital display on platform 99.6 80.5 24% 16% Publ. Services 11% 19% & Others Digital display off platform 40.6 8.5 378% (19%) Subscriptions eCom
Slide 12: Resilient performance in challenging times
Resilient performance in challenging times Organic Events revenue decline1 Organic Digital On-Platform revenue growth1 TI Media and Organic Magazine revenue decline1,2,3 Organic eCommerce revenue growth1 Organic is defined in appendix 12 1 Year-on-year results vs proforma on a like-for-like portfolio
Slide 13: Continued track record of strong cash flow
Continued track record of strong cash flow £m FY 2020 FY 2019 Adjusted cash generated before changes in 92.4 49.5 ● Adjusted free cash flow up 79% yoy to £96.0m working capital and provisions Adjusted movement in working capital and ● Benefit of positive working capital movement 7.6 8.2 provisions Adju
Slide 14: Continued strong track record
Continued strong track record 28% +55% CAGR +140% CAGR 339.6 93.4 221.5 52.2 130.1 84.4 59.0 18.5 2.8 8.9 96.0 +114% CAGR +71% CAGR 74.7 53.7 47.5 24.3 18.4 4.6 15.3 17.4 8.8 14 See appendix for definitions
Slide 15: Executing on Strategy
Executing on Strategy 15
Slide 16: Continued execution of strategy
Continued execution of strategy Future is a global platform for specialist media driven by technology with diversified ECOMMERCE & revenue streams LEAD GEN ADVERTISING We create loyal communities and fans of our brands by giving them a place they want to spend PLATFORM AS CONTENT PUBLISHING & their t
Slide 17: A place to spend their time - scale and engagement
A place to spend their time - scale and engagement Our content reaches 1 in 3 31% Our reach of people online in the US 45% Our reach of people online in the UK people online in the US and UK 1 23 98.7m #1 market positions Social media followers +58% CAGR 2.3bn 3.9m Video views PC Gaming Show total v
Slide 18: Meeting the needs of our audiences
Meeting the needs of our audiences 2 20 Sept End of FY COVID-19 YoY: +41% ● Exceptional year of online audience growth of 2019 Lockdown 56%; 48% organic growth ● Exceptional year of subscription growth ● Content revenue compounds over time; content paid for in prior years continues to deliver revenu
Slide 19: Growing online brands in the US
A global platform for specialist media In order to grow online brands in the US, we take deliberate steps to adopt a US-first mindset These steps include: ● Switching from .co.uk to .com 2.1m ● Focusing keyword and critical terms Migrated to Vanilla research on US traffic volumes ● Encouraging the use
Slide 20: Delivering diversified revenue streams through the specialist media platform
Delivering diversified revenue streams through the specialist media platform 10m 108m 32% 21m 62m RoW 16% UK 20m 13m 282m 394 m audience online users1 5m reach2 21m 4% 48% 2m 56m AU & NZ US & CAN 42m 17m 16m FY 2020 Online Audience by Territory FY 2020 Audience by Vertical 1 Online users: source is G
Slide 21: Driven by technology
Driven by technology The extension of the Hawk Monetisation capability led us to build eComm Tech: Assets adjacent opportunity: Hawk Revenue Mix Content Sept 2020 Month Commissioning Falcon, new lead gen tech for content, Portal funnelling leads through surveys and Lead Gen Tech: 1% Publ. Source Ser
Slide 22: Our purpose, values and response to COVID-19
Our purpose underpins execution of our strategy, enabled by our values, as evidenced in our response to the pandemic “We change people’s lives Response to COVID-19 Moved to globally working from home ahead of local government enforced through sharing our ● lockdowns knowledge and expertise ● Set COV
Slide 23: Driving Future Growth
Driving Future Growth 23
Slide 24: Investment in editorial & content creation
Delivering revenue growth: investment in editorial & content creation We spent in the region of £50m a year on content staff*, compared to <£20m 4 years ago. This significant investment supports our longer term audience growth ● We continue to invest heavily in content, overall headcount accounts for
Slide 25: Investment in technology
Delivering revenue growth: investment in technology Our operating model allows Future to do more with more, by reducing cost per head while increasing total investment we are able to accelerate growth Continual evolvement of the platform ● Easy and fast to load, device agnostic, mobile first, premium
Slide 26: Advertising technology investment and growth
Advertising technology investment and growth Premium quality audiences: Audience products and tech investment to develop market position as destination for highly valued intent based 7.5% Increase in first audiences. party ad campaigns delivered in H2 FY 2020 over H1 FY Ease of integration: Strengthe
Slide 27: Investment in eCommerce
Delivering revenue growth: investment in eCommerce tner mix: total 2.6k merchants and 137 affiliate networks f purchase funnel: strategy is built on optimising all areas of the purchase funnel. By prove all metrics, rather than focussing on one, we are creating a multiplier effect, driving YoY % enue
Slide 28: Investment in Acquisitions: a track record of success
Investment in Acquisitions : A track record of success We have completed 7 acquisitions since January 2019, ranging from bolt-on to transformational. All are trading ahead of expectations Mobile Nations SmartBrief Barcroft Cinemablend 1. March 2019 2. July 2019 3. Nov 2019 4. Oct 2020 +14% 6.16m +25
Slide 29: TI Media investment thesis
TI Media investment thesis Original investment thesis ● Opportunity to acquire market leading brands and increase our relevance to a female demographic ● Value realised via growing existing brands in the US with a “US First” mindset ● While launching new “.com” brands into new verticals ● Monetise e
Slide 30: TI Media - strong progress against investment thesis
TI Media - Strong progress against investment thesis 1. Driving significant increase in audience 2. Benefits of the platform 1 1 Top 10 Sites by Growth Sept-20 Online Users YoY % Homes & Gardens 196,551 +329% FY 2020 YoY: +25% Marie Claire Edit 32,301 +154% Livingetc 259,372 +110% Amateur Gardening 35
Slide 31: Investment in TI Media: driving new innovation
Investment in TI Media: driving new innovation ● Growing new revenues ● We have launched 6 new brands: ● We have migrated 3 .com sites to Vanilla ● Fully integrated Case study ● New launch in July 2020 - utilising content expertise from TI team and Fit & Well magazine ● Fast growth since launch - pa
Slide 32: Investing in the Future: Recommended Offer for GoCo Group plc
Investing in the Future Recommended Offer for GoCo Group plc 32
Slide 33: Our strategy remains clear and simple
Our strategy remains clear and simple: to build a global specialist media platform that drives intent, powered by technology and insight with scalable, diversified brands Future is a global platform for specialist media driven by technology with diversified ECOMMERCE & ADVERTISING revenue streams LEAD
Slide 34: Creation of a leading global specialist media intent platform
Creation of a leading global specialist media intent platform 136p £594m Creating a leading global Headline price per Offer equity value GoCo share1 specialist media platform that drives intent, enabled by technology 76%:24% 33p in cash Shares : Cash consideration 81%:19% 103p in shares3 Recommended
Slide 35: GoCo: An overview
GoCo: An overview A diversified group of leading savings websites in the UK benefiting from a strong brand and consumer proposition 91% of 5% of 4% of Revenue1 Revenue1 Revenue1 Price Comparison AutoSave Rewards Platform Services2 A leading UK financial B2B business Customers provide full switching Sav
Slide 36: Rationale: accelerating Future's growth strategy
Rationale: Accelerating Future’s growth strategy, GoCo brings further opportunities to diversify revenues and extend platform model Creation of a ● Helping customers to save money through informed purchase decisions and comparison of prices 1 Leading Global Specialist ● Leading offering for consumer
Slide 37: Rationale: accelerating Future's growth strategy
Rationale: Accelerating Future’s growth strategy, GoCo brings further opportunities to diversify revenues and extend platform model 1 Creation of a Leading Global Specialist Media 2 Adds key capabilities and adjacent routes to monetisation and “Intent Platform” ● Helping customers to save money thro
Slide 38: Rationale: leverage Future expertise in search to further grow audience
Rationale: Leverage Future expertise in search to further grow audience 3 Substantially Growing the Addressable Market 4 Lower Customer Acquisition Costs ● Increase GoCo’s addressable market via leveraging content across ● Powerful technology platform and complementary expertise Future’s brands . Fo
Slide 39: Rationale: enhanced proposition and integrated technology
Rationale: Enhanced proposition as GoCo brings further opportunities to diversify revenues and extend platform model 5 Enhanced Proposition for Advertisers 6 Integrated Technology Platforms and Lead Generation Partners ● High consumer ● Complementary technology assets to provide strong, engagement p
Slide 40: Strong financial platform through combination
Strong financial platform through combination: Significant financial benefits for shareholders across a number of metrics Highly Cash Enhanced Scale Attractive Growth Financial Benefits Generative ⚫ Material increase in ⚫ GoCo 9M-2020 revenue ⚫ Immediately adjusted ⚫ GoCo FY 2019 operating revenues and a
Slide 41: Capital structure and progressive approach to dividend
Capital structure and progressive approach to dividend: Reducing leverage to be rapidly <1.5x New debt to be raised for the cash consideration1 ○ £215m acquisition facility2 agreed from existing lenders, of which approximately £144m used to fund cash consideration ○ £135m existing RCF remains in pla
Slide 42: Expected offer timetable
Expected offer timetable: Expected closing by Q1 2021 ● Implemented via a court-sanctioned Expected Offer Timetable Scheme of Arrangement ⚫ Publication of Offer Announcement 25 November 2020 ● Anticipated completion date in Q1 2021 ⚫ Future FY 2020 Annual Results ● Subject to: ⚫ Posting of Circular,
Slide 43: Summary
Summary 43
Slide 44: Summary
Summary Against an unprecedented year Future has continued to deliver exceptional performance. Delivering results ahead of expectations. Our operating model has proven scalable and adaptable, while a values led execution has enabled us to respond to the rapidly changing landscape Continuing to ensur
Slide 45: Appendix
yo Appendix FUTURE
Slide 46: Group performance: Income Statement
Group performance: Income Statement £m FY 2020 FY 2019 YoY Var ● Acquired amortisation reflect full-year impact of Adjusted operating profit 93.4 52.2 79% FY 2019 and FY 2020 acquisitions Share based payments (5.5) (9.0) 39% ● Exceptional costs relate materially to TI Media Acquired amortisation (21.6
Slide 47: Exceptionals
Exceptionals P&L £m FY 2020 ● P&L exceptional charges mainly driven by the TI Restructuring and redundancy costs¹ 9.1 acquisition and costs to deliver synergies Impairment of assets¹ 0.8 ○ Restructuring - cost to achieve synergies of £9.9m Acquisition and integration related costs 3.9 (with balance
Slide 48: Technology enabled: powerful, scalable, highly monetisable tech stack
Technology enabled Powerful, scalable and highly monetisable tech Assets Websites Monetisation stack Freelance 38 sites now on Vanilla Staff Tech Services platform Ecom Tech: Hawk 12 sites migrated to Vanilla Content platform in FY 2020 Commissioning Web Platform Ad Tech: Portal Hybrid 8 sites launc
Slide 49: Total online audience figures breakdown
Total online audience figures breakdown Online Users (Google Analytics) FY 2020 YoY Online Users (Google FY 2020 YoY Analytics) Total forums 17.1m -32% What Hi-Fi forum 36.8k N/A Total exc. forums 281.8m +56% What Hi-Fi exc. forums 5.0m +86% Total 298.9m +45% Total What Hi-Fi 5.0m +87% Mobile Nations
Slide 50: Audience growth third-party sources comparison
Audience growth third-party sources comparison Top 10 Websites Google Analytics online users comScore online unique visitors SimilarWeb total visits** Sept-20 YoY Jul-20* YoY Sept-20 TechRadar 46.9m +33% 31.2m +33% 53.1m Tom’s Guide 33.4m +56% 23.4m +48% 30.1m GamesRadar 24.5m +45% 13.7m +33% 24.7m
Slide 51: Recommended Offer for GoCo Group plc
Recommended Offer for GoCo Group plc Introduction 51
Slide 52: Recommended acquisition of GoCo Group Plc
Recommended acquisition of GoCo Group Plc: Creation of a leading global specialist media intent platform ● Creating a leading global specialist media intent platform ● Adds key capabilities and adjacent routes to monetisation 1 Strategic ● Substantially growing the addressable market Rationale ● Low
Slide 53: Our strategy remains clear and simple
Our strategy remains clear and simple: to build a global specialist media platform that drives intent, powered by technology and insight with scalable, diversified brands Future is a global platform for specialist media driven by technology with diversified ECOMMERCE & ADVERTISING revenue streams LEAD
Slide 54: Value Creation
Value Creation FuTURE
Slide 55: Attractive cost synergies
Attractive cost synergies: Across back office functions and other overhead costs & contracts c.£10m ● Approximately £10m recurring run-rate annual cost synergies ○ c.27% to be realised in the financial year ended 30 September 2021 ○ c.94% to be realised by end of the financial year ended 30 September 2
Slide 56: Four Steps Integration Approach
Our proven approach to integration: Track record underpinned by systematic approach to delivering acquisitions 1 Pre-Completion: 90 days to completion (during FCA process) Four Steps Integration Approach 2 Control Integration: First 90 days 3 Commercial Preparation: Within 6 months 4 Realisation: Wi
Slide 57: Accelerating strategy, enhanced proposition and shareholder value creation
Conclusion: Accelerating strategy, enhanced proposition & technology and significant shareholder value creation 1 Creation of Leading Global Specialist Media and “Intent Platform” Accelerating Strategy 2 Adds key capabilities and adjacent routes to monetisation 3 Substantially Growing the Addressable
Slide 58: Leadership and governance
Leadership and governance: Board with significant experience will now also include an additional member from the GoCo team Board of the Combined Group Richard Huntingford Zillah Byng-Thorne Rachel Addison Hugo Drayton Angela Chief Executive Chief Financial Senior Independent Seymour-Jackson Chair Offi
Slide 59: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth defined as the portfolio at constant FX rates (i) excluding acquisitions and disposals made during FY19 and FY20 and (ii) including the impact of closures and new launches Financial notes ● Adjusted results are adjusted for share-based payments (re
Slide 60: Sources & Definitions: Audience
Sources & Definitions: Audience Online users ● Online users are taken from Google Analytics. Unless otherwise stated, online users are monthly and the monthly average across the half year period is taken Online reach information ● Demographic reach information on Future’s online audience is taken fro
Slide 61: Disclaimer
THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT INTENDED FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO, OR USE BY, ANY PERSON OR ENTITY IN OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
Slide 62: Disclaimer
DISCLAIMER For the purposes of Rule 28 of the City Code on Takeovers and Mergers, quantified financial benefits statements contained in this presentation are the responsibility of Future and the Future directors. Neither the quantified financial benefits statement nor any other statement in this presentat