Slide 1: Future plc 2018 H1 Results
FUTURE PLC 2018 H1 RESULTS 17th May 2018
Slide 2: Executive summary
2 Executive summary ● Another strong set of results ○ Group revenue up 25% year-on-year ○ Driven by underlying organic growth particularly in the Media division and contributions from acquisitions ○ Substantial growth in adjusted EBITDA and operating profit up 83% and 97% respectively year-on-year as
Slide 3: Connectors. Creators. Experience Makers.
Connectors. Creators. Experience Makers. 3
Slide 4: Financial Review
FINANCIAL REVIEW Penny Ladkin-Brand - Chief Financial Officer
Slide 5: Financial KPIs
5 Financial KPIs Operating profit* EBITDA margin* £7.5m (HY17: £3.8m) 17% (HY17: 12%) Operating cash inflows* Recurring revenues £11.1m (HY17: £6.2m) 28% (HY17: 27%) *Adjusted - stated before share based payments and related social security costs, amortisation of acquired intangibles and exceptional c
Slide 6: Financial highlights
6 Financial highlights £m HY18 HY17 YoY Var 2017 Full ● Revenue increased 25% Year reflecting strong organic Revenue 51.1 40.9 25% 84.4 growth plus the acquisition of Home Interest which EBITDA* 8.8 4.8 83% 11.0 contributed £7.1m in the period EBITDA margin* 17% 12% 42% 13% Operating profit* 7.5 3.8 9
Slide 7: Group performance: revenue
7 Group performance: revenue £m HY18 HY17 YoY Var 2017 Full Year Media 26.2 16.2 62% 34.1 Magazine 24.9 24.7 1% 50.3 Total 51.1 40.9 25% 84.4 % recurring 28% 27% 4% 27% Media revenue 51% of group revenue with organic growth rate of 31% driven by: ● eCommerce revenue up 77% to £7.6m (2017: £4.3m), al
Slide 8: Group performance: growth in EBITDA
8 Group performance: growth in EBITDA Focus is on ● delivering sustainable growth in EBITDA ● profitable revenues rather than top-line growth to drive margin expansion ● converting profits to cash * Adjusted Cash conversion defined as Adjusted Operating Cashflows/EBITDA
Slide 9: Group performance: EBITDA
9 Group performance: EBITDA £m HY18 HY17 YoY Var 2017 Full ● Media margin improvement, driven by Year continued growth in eCommerce, despite the significant growth in Media Division gross contribution 22.4 13.3 68% 27.6 events which are lower margin GC margin 85% 82% 3pp 81% ● Magazine margin flat due
Slide 10: Cashflow
10 Cashflow ● Continued strong generation of cash from operating cashflows ● Acquisition related inflow is in respect of final working capital adjustment from Home Interest acquisition ● Capex mainly includes website development and investment in IT infrastructure ● Tax reflects repayment of legacy HMRC
Slide 11: 2018 H1 in summary
11 2018 H1 in summary ● eCommerce platform shows continued momentum ● Strong performance from digital advertising in period reflecting technology investments ● Magazines continue to decline as expected ● Continued investment in new Media growth areas ● Strong results with continued margin expansion a
Slide 12: Business Update & Strategy
BUSINESS UPDATE & STRATEGY Zillah Byng-Thorne - Chief Executive
Slide 13: Our strategy
Our strategy Future is a technology enabled 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. Continuing to create loyal communities. Expanding our global reach t
Slide 14: Future's strategy: a global platform for specialist media
14 Future’s strategy: a global platform for specialist media Growth through the platform wheel Diversifying Powered by our Continued diversification 1 2 3 4 Ongoing Investment our audience tech stack of content monetisation New verticals ● Scalable, lean Trialling: ● Buy & build where we ● Outdoor le
Slide 15: Specialised media in targeted audience verticals
15 Specialised media in targeted audience verticals Audience diversification through scalable sectors delivering diversified revenues 29.8M 32.9M 28M audience reach audience reach audience reach 4M 845K #1 online in UK #1 in PC gaming #1 print in UK & US audience reach audience reach CONSUMER Technolo
Slide 16: Delivering on strategy: diversified & organic revenues
16 Delivering on strategy: diversified & organic revenues We have successfully grown our organic business via growing audiences and developing new formats +124% CAGR +30% CAGR 2018 In the chart above eCommerce continuing revenue excludes FY17 acquisitions and Next Commerce which was an FY16 acquisiti
Slide 17: Delivering on strategy: expanding our global reach
17 Delivering on strategy: expanding our global reach ● Our success is driven by market leadership in many of the markets we operate in ● Growing our global audience represents a real opportunity for further monetisation ● Our online audience growth so far has been largely organic and via partnershi
Slide 18: Digital advertising growth
18 Digital advertising growth Investment in our tech stack capitalising on programmatic market growth ● Investment in tech stack has resulted in: ● Digital advertising revenue up 33% year-on-year ● Increased advertising yields by improving demand and quality ● Improved viewability and load times ● I
Slide 19: Delivering growth: scalable platforms
19 Delivering growth: scalable platforms Investment in core operating model creating a scalable business model Investment in tech stack ● Supporting market shift to programmatic advertising ● Improved viewability ● Implemented header bidding ● Optimisation of proprietary CMS ● Improved availability
Slide 20: Delivering strategy: acquisitions
20 Delivering strategy: acquisitions ● Core part of strategy in buy and build where we identify assets where we can add value ● Systemic approach to all acquisitions, resulting in all transactions to date being originated in house Phase 0 Phase 1 Phase 2 Phase 3 pre purchase first 4 months 4-12 month
Slide 21: Buy & build: Home Interest
21 Buy & build: Home Interest Integration ● Complete and delivered within four months Business performance ● Launched Realhomes.com in November 2017 ● Scalable tech stack enabled the launch of 36% CAGR RealHomes.com in just five weeks ● Realhomes.com users up 150%+ since December ● H1 proforma revenu
Slide 22: Acquisition of NewBay Media
22 Acquisition of NewBay Media ● Acquired April 2018, it is an information and events business based in New York and London ● Substantial B2B portfolio operating in verticals including TV & Audio and Electronics & Education ● Creates a leadership position in consumer division in Music in US ● Expand
Slide 23: Acquisition of Haymarket titles
23 Acquisition of Haymarket titles ● Four specialist consumer titles: What Hi-Fi?, FourFourTwo, Practical Caravan and Practical Motorhome ● Expands reach in technology market and provides entry into the audio visual market ● Increases audience diversification into new specialist verticals - football
Slide 24: Summary
24 Summary ● Strong first half ● Executed on organic expansion and continue to find sub scale assets which can bring real value to the Future business model ● Continue to invest in people and technology ● Focus on diversifying revenue base and strong returns on cash generation ● A truly global technol
Slide 25: Appendix
APPENDIX
Slide 26: Our Purpose
OUR PURPOSE “ We change people’s lives through sharing our knowledge and expertise with others, making it easy and fun for them to do what they want ”
Slide 27: How We Behave
27 HOW WE BEHAVE ● 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
Slide 28: Global, diversified and scalable business
Global, diversified and scalable business Global Brands Market Leading Award Winning TechRadar #1 UK consumer tech 150+ brands website Future won 7 consumer PC Gamer #1 PC gaming website Transformation of the Year verticals globally at the prestigious PLC Awards in London Creativebloq #1 creative & d
Slide 29: Thank you
THANK YOU =