Slide 1: FY16 Results
FY16 RESULTS 23rd November 2016
Slide 2: Executive summary
Executive summary 1. We are a team with 2. Our strategy to deliver 3. We are on track a track record; we have a global media platform with the Imagine integration, delivered on the plan for 2016 business with data at its materially increasing the and increased EBITE by 188%. heart is working. scale
Slide 3: Financial Review
Financial Review Penny Ladkin-Brand – Chief Financial Officer
Slide 4: Financial KPIs
Financial KPIs EBITE EBITDAE margin £2.3m (2015: £0.8m) 8% (2015: 6%) Operating cashflows Recurring revenues £6.5m inflow (2015: £2.3m 25% (2015: 22%) outflow) 4
Slide 5: Financial highlights
Financial highlights Continuing: £m FY16 FY15 YoY Revenue 59.0 59.8 (1%) Strong growth in the Media division EBITDAE 4.7 3.6 31% reflecting return on cash invested in new revenue streams. EBITDAE margin 8% 6% 33% EBITE 2.3 0.8 188% Strong growth in EBITDAE as the Adjusted pre-tax profit 1.6 0.2 700% r
Slide 6: FY16: Group performance - revenue
FY16: Group performance - revenue £m FY16 FY15 YoY Growth Media 23.9 20.9 14% Magazines 35.1 38.9 (10%) 14% YoY growth in the Media division driven Total continuing 59.0 59.8 (1%) by fast growth in e-commerce and events. % Recurring 25% 22% Print advertising exposure is now less than 10% of overall
Slide 7: Being brilliant at the basics: marginal gains
Being brilliant at the basics: marginal gains Being brilliant at the basics is about the aggregation of marginal gains; small differences amount to material change over time. Price optimisation review has increased subscriber ARPU 14% YoY. We constantly re-engineer our processes to create lean but sc
Slide 8: FY16: Group performance - EBITDAE
FY16: Group performance - EBITDAE £m 8
Slide 9: P&L exceptional items
P&L exceptional items £m FY16 FY15 Exceptional items 3.5 2.5 Impairment 13.0 - Total P&L 16.5 2.5 Non-cash impairment of £13m reflecting a geographical shift in revenue generation between the UK and US. Exceptional costs include £1.8m of headcount reduction and planned transformation expenses, £2.3m
Slide 10: Cashflow
£m 6.0 5.0 Net debt at 1 October 2015 Cashflow Cash from operations Net tax Net interest Capex Finance Netproceeds Acquisitions Exceptionals Forex Net cash at 30 leases from share September issue 2016 10
Slide 11: FY16 in Summary
FY16 in Summary • Delivered on EBITDAE margin improvement to 8% • Improved operating cashflows to £6.5m, 138% conversion of EBITDAE • Benefit of operating leverage flowing through to EBITE up 188% • Increased scale of Group; latest full year EBITDA of Imagine Publishing £3.3m* • As part of acquisition,
Slide 12: Business Update & Strategy
Business Update & Strategy Zillah Byng-Thorne - Chief Executive
Slide 13: Executive summary
Executive summary 1. We are a team with 2. Our strategy to deliver 3. We are on track a track record; we have a global media platform with the Imagine integration, delivered on the plan for 2016 business with data at its materially increasing the and increased EBITE by 188%. heart is working. scale
Slide 14: A team with a track record, organised to deliver results
A team with a track record, organised to deliver results 14
Slide 15: Media Brands division
Media Brands division Underpinned by market-leading global brands, focused on building fast-growing digital and diversified revenues 45 Million+ • #1 UK tech consumer website Average Q4 global • Revenues up 49% YoY monthly online users (+14% vs. Q3) • Event of the Year: Consumer Media PPA Awards 2016
Slide 16: Media Services division
Media Services division Strengthening our focus on content publishing, licensing, syndication and franchising to drive high profit margins as a result of operating leverage CONTENT PUBLISHING LICENSING, FRANCHISING Future Fusion & SYNDICATION Leveraging our expertise in creating We license our magazi
Slide 17: Magazines division
Magazines division Focused on efficiency, excellence in operations and ongoing innovation 1,040,000 Global circulation 400+ Bookazines published a year Marco Peroni Aaron Asadi 482,000 Operations & Finance Creative Director, Global subscribers Director, Magazines Magazines 66 Monthly magazines publish
Slide 18: Acquisitions
Acquisitions Strategic opportunistic acquisitions, Transformational transaction, increasing proforma focused on paying back within one year EBITDAE by 70%* Noble House Media – April 2016 Imagine Publishing – October 2016 • Revenues of £0.9m* • Extending our mobile expertise • On track with integrati
Slide 19: Where we're going
Where we’re going Our strategy Future will be a global platform for specialist media with scalable, diversified brands. “ Creating fans of our brands by giving them a place they want to spend their time, where they go to meet “ their needs. Creating loyal communities. Expanding our global reach throu
Slide 20: A global platform for specialist media with data at its heart
A global platform for specialist media with data at its heart Established authority iPad Pro packs powerful enough hardware to be a genuine laptop “ “ replacement, with more than enough grunt in terms of processor and “ graphics performance. Three years from now the T3 Phil Schiller quoting TechRada
Slide 21: Data-led editorial strategy
A global platform for specialist media with data at its heart Data-led editorial strategy Editorial Data Optimised Expertise Capabilities Content Win Customer Identify what Analyse trends, Create content optimised consumers are product releases, for SEO, social channels interested in. historical pat
Slide 22: iPhone 7 announcement
A global platform for specialist media with data at its heart iPhone 7 announcement On the announcement day, TechRadar.com ranked #1 in Google search results - ahead of Apple.com 22
Slide 23: Facilitating material diversified revenue streams
A global platform for specialist media with data at its heart Facilitating material diversified revenue streams 23
Slide 24: Material revenue streams: advertising
Material revenue streams Winning at both ends of the advertising value chain Brand partnerships Ad technology Continual development of brand partnerships First publisher in the UK to have a guaranteed with key advertisers in leading specialist buy PMP in place. sectors. Unique combination of data se
Slide 25: Material revenue streams: events
Material revenue streams Extending and deepening our events Expanding into new markets: Deepening the brand franchises: London – since 2013 PC Gaming Show at E3 established as a “must” event at the New York – since 2015 show, this year (2017) invited to be an “official” participant. San Francisco – Ne
Slide 26: Material revenue streams: subscription & e-learning
Material revenue streams Subscription & e-learning Subscription • Increase in ARPU (average revenue per user) of 14% following a pricing review in our subscription base. E-learning Platform • Supporting our PhotoClub membership scheme • Providing access to exclusive member content and offers New Reta
Slide 27: Material revenue streams: e-commerce
Material revenue streams E-commerce We send £107m 1.4m+ Total sales over the past year clicks a month to partners’ sites 40k+ 94k UK phone Avg. monthly contracts sold transactions Source: Future e-commerce records, September 2016 27
Slide 28: Delivering ongoing growth
A global platform for specialist media with data at its heart Delivering ongoing growth through… INNOVATION Continued global Leveraging content to Establishing a content Powered by our loyal expansion via owned and diversify revenue platform communities operated BRILLIANT AT THE BASICS Achieving ope
Slide 29: Executive summary
Executive summary 1. We are a team with 2. Our strategy to deliver 3. We are on track a track record; we have a global media platform with the Imagine integration, delivered on the plan for 2016 business with data at its materially increasing the and increased EBITE by 188%. heart is working. scale
Slide 30: Appendix
Appendix How we behave The Future brands
Slide 31: How We Behave…
How We Behave… …and How We Will Deliver • We are part of the audience and their community • We are proud of our past and excited about our future • We all row the boat • Let’s do this! • It’s the people in the boat that matter • Results matter; success feels good 31
Slide 32: Technology
Technology techradar Ts. MAKIMUMPE £27 Windows GIZMODO « |lifehacker | ux @ ITProPortat Mac FORMAT LINUX Gadget Linxuser OR FORMAT. A —_ a MOBILE WOBILE WIRELESS Donen
Slide 33: Gaming & Entertainment
Future Gaming & Entertainment ie gamesradar+ [Jefe¥ UV las] woTraw @Polygon PlayStation, 29 XBOX EDGE FILM Gitte 34TH e 9 (YOUR 2 cl GOLOEN “iS gti By
Slide 34: Creative & Photography
Creative & Photography (:) CREATIVE BLOO Caiiera cayeurr PhotoPlus WPhoto net pio otographer E18) liviaginielX B¥esHop [i 1 . web Tee) «6 3Dartist Photoshop = designer Pitesrepty generate |
Slide 35: Music
Guitarist Guitar lecliniques THE LONDON SHOW Music Guitar j|$= musicradar ACOUSTIC Bass COMPUTER . MUSIC FutureMusic onno’s THE Ades
Slide 36: Field Sports
Future Field Sports ie AIRGYE. (Shoot, BOW SPORTINGRIFLE INTERNATIONAL SID SUT CUTE EWS SHOOTING CLUB DIRECTORY 6a The Airgun Show °s@@nys SCOT NATIONAL RIFLE = ag ASSOCIATION: Sy
Slide 37: Knowledge & Science
Knowledge & Science HOWIT ails SOGée HISTORY History of WAR Réviils plore ALL ABOUT nah
Slide 38: Thank You
Thank You