Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION 28 July 2016
Slide 2: Stephen A. Carter, Group Chief Executive
STEPHEN A. CARTER Group Chief Executive Progress and Performance Resilience and Renovation INTERIM RESULTS PRESENTATION 28 JULY 2016 2
Slide 3: Continued Progress and Performance
CONTINUED PROGRESS AND PERFORMANCE +2.5% Accelerating organic revenue growth… +4.7% Higher reported revenue… +6.3% Increased adjusted operating profit… +3.1% Growth in adjusted diluted earnings per share… +4% Increased interim dividend per share… 2.4x Robust balance sheet… ON TRACK FOR FULL YEAR GRO
Slide 4: Disciplined Delivery in the Peak Year of GAP Investment
DISCIPLINED DELIVERY IN THE PEAK YEAR OF GAP INVESTMENT £45-50m GAP Investment in 2016… £70-75m Cumulative GAP Investment by year-end… c£90m Total GAP Investment programme… c30 Product and platform workstreams in progress … >50 Individual product/platform upgrades over next 18 months… >35 Individual
Slide 5: Increasing Resilience Through GAP
INCREASING RESILIENCE THROUGH GAP Talent Management, Sales, Technology, Graduates, Training, Incentives Product Mobile, Digital, Flexible, Data Rich, Analytical Tools, Search, APIs Platform CRM, Digital, Content, Data, Sales, Finance, Communication Structure Simplified Model, Cust. Focused, Data Ori
Slide 6: Visibility of Earnings
VISIBILITY OF EARNINGS REVENUE BY GEOGRAPHY REVENUE BY CURRENCY REVENUE BY TYPE 2016 2016 2016 NORTH AMERICA 44% US DOLLAR / PEGGED 57% SUBSCRIPTIONS 38% REST OF WORLD 28% UK STERLING 28% EXHIBITOR 20% CONTINENTAL EUROPE 17% EUROS 8% UNIT SALES 21% UK 11% OTHER CURRENCIES 7% SPONSORSHIP & ADS 8% ATT
Slide 7: Operational Fitness
OPERATIONAL FITNESS Sustainable Strong Cash Performance Generation Robust Underlying International Scale Growth Predictable and INFORMA Digital and Data Recurring Revenue Capability Operating Robust Balance Leverage Sheet INTERIM RESULTS PRESENTATION 28 JULY 2016 7
Slide 8: Gareth Wright, Group Finance Director
GARETH WRIGHT Group Finance Director INTERIM RESULTS PRESENTATION 28 JULY 2016 8
Slide 9: 2016 Performance and Progress
2016 PERFORMANCE AND PROGRESS +2.5% +6.3% 4% Accelerating Organic Revenue Increased Adjusted Increased Interim Dividend Growth Operating Profit Per Share +2.5% vs +0.2% in H1 2015 and +6.3% to £202.2m (2015: £190.3m) up 4% to 6.80p (2015: 6.55p) +1.0% in FY 2015 +3.1% Growth in Adjusted Diluted EP
Slide 10: Divisional Performance on Track
DIVISIONAL PERFORMANCE ON TRACK Year-on-Year Year-on-Year H1 2016 H1 2015 Growth Organic Growth £m £m % % Revenue: Global Exhibitions 192.9 168.8 14.3 11.6 Academic Publishing 214.7 195.0 10.1 0.9 Business Intelligence 134.6 138.8 (3.0) (0.5) Knowledge & Networking 105.5 116.2 (9.2) (4.7) Group 647.
Slide 11: GAP Investment and Performance
GAP INVESTMENT AND PERFORMANCE c£90m c£50m c£70m Total Programme Cash invested to date Approved to invest c30 c£5m c80% Project workstreams live P&L impact in H1 2016 Capex v Opex in 2016 30-40 15-20% 25-35% Total number of projects 2017 forecast ROI* 2018 forecast ROI* * ROI = Net P&L impact (Benef
Slide 12: GAP Returns – Entering the Delivery Phase
GAP RETURNS – ENTERING THE DELIVERY PHASE AP: Enhanced CRM AP: Researcher platform Lifecycle AP: Enhanced Content Scheduled Product/Platform releases AP: Research Management Networking AP: Unified Books and GE: Enhanced Journals Experience Customer Insights AP: Evidence-based AP: Analytics GE: Marke
Slide 13: Growth in Adjusted Earnings Per Share
GROWTH IN ADJUSTED EARNINGS PER SHARE H1 2016 H1 2015 £m £m Revenue 647.7 618.8 Adjusted Operating Profit 202.2 190.3 • Adjusted EPS growth of 3.1% Adjusted Operating margin 31.2% 30.8% • Three key factors: o Higher net interest: Net interest (17.4) (12.1) Adjusted Profit Before Tax 184.8 178.2 － Lo
Slide 14: Strong Underlying Free Cash Flow
STRONG UNDERLYING FREE CASH FLOW £m • One-off factors distort YoY comparison £116m o Academic Publishing timing o GAP Investment up to £20m o Normalised cash tax rate £68m o FX and US Private Placing impact • Underlying cash conversion strong YoY • Full year cash flow on track adjustments INTERIM RE
Slide 15: Robust Balance Sheet
ROBUST BALANCE SHEET £m £1055m • Increase in net debt principally due to FX £895m o USD at 30 June 2016 = 1.35 o USD at 31 Dec 2015 = 1.48 • Gearing in line with last year and within target range at 2.4x INTERIM RESULTS PRESENTATION 28 JULY 2016 15
Slide 16: Financing Flexibility and Visibility
FINANCING FLEXIBILITY AND VISIBILITY Debt Maturity Profile • Robust balance sheet o 2.4x gearing at H1 450 o Mix of bank debt and US PP debt 400 o >80% of debt US Dollar 350 denominated 300 • Secure pension position 250 o Defined benefit schemes closed 200 o No cash contributions in H1 150 o Net lia
Slide 17: Operating Discipline
OPERATING DISCIPLINE Return On Capital Employed % 10 9.7% 9.3% 9 8.9% 8.8% 8.3% 8 7 6 2012 2013 2014 2015 2016 IMPROVING RETURNS PROFILE INTERIM RESULTS PRESENTATION 28 JULY 2016 17
Slide 18: Performance Summary
PERFORMANCE SUMMARY 1 Progressive improvement in organic revenue growth 2 Good growth in adjusted operating profit 3 Peak year of investment for future growth and capability 4 Growth in adjusted earnings with prudent treatment of loan note interest 5 Strong underlying Free Cash Flow, one-off factors
Slide 19: Stephen A. Carter, Group Chief Executive
STEPHEN A. CARTER Group Chief Executive Progress and Performance Resilience and Renovation FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016
Slide 20: Increasing Resilience Through GAP
INCREASING RESILIENCE THROUGH GAP Talent Management, Sales, Technology, Graduates, Training, Incentives Product Mobile, Digital, Flexible, Data Rich, Analytical Tools, Search, APIs Platform CRM, Digital, Content, Data, Sales, Finance, Communication Structure Simplified Model, Cust. Focused, Data Ori
Slide 21: Global Exhibitions…Growing
GLOBAL EXHIBITIONS…GROWING Talent Product Platform • Divisional CEO • Market Maker activity • Global Web platform • CTO and Digital Director • Targeted geo-cloning • Redshift & Eloqua • Training & Leadership • Pricing models • Salesforce CRM deployment Development Programme • Medlab spin-off • Works
Slide 22: Academic Publishing…Resilient
ACADEMIC PUBLISHING…RESILIENT Talent Product Platform • CTO appointment • Content expansion • Content Delivery & • Leadership Development • Open Access acceleration Discoverability Programme • Author Services • Customer Analytics • Global Books and Journal • Digital Archives – From World • Digital M
Slide 23: Business Intelligence…Improving
BUSINESS INTELLIGENCE…IMPROVING Talent Product Platform • Senior Management • New vertical Brand structure • CRM platform • Sales leadership • >35 product/platform releases • Insight platform • Vertical expertise over the next 18m • Intelligence platform • Consulting MD • Subscription renewals c90%
Slide 24: Knowledge & Networking…Restructuring
KNOWLEDGE & NETWORKING…RESTRUCTURING Talent Product Platform • Senior Management Team • Brand consolidation to c1200 • CORE digital platform • Professional Development & events in 2016 • Salesforce integration Learning • Focus on building Community • Digital Marketing • Key Account Management Brands
Slide 25: GAP Year 3 Performance Ambitions
GAP YEAR 3 PERFORMANCE AMBITIONS 2015 2016 Consistent strong Global Exhibitions 10.5% growth Steady year-on-year Academic Publishing 1.6% growth Positive full year Business Intelligence -1.7% growth Flat full year Knowledge & Networking -4.2% growth Progressive Group 1.0% improvement in organic grow
Slide 26: 2016 Progress and Performance
2016 PROGRESS AND PERFORMANCE 1 Continued Progress and Performance in peak year of GAP Investment 2 £45-50m investment across 30 workstreams in 2016 3 Increased Resilience through GAP Renovation 4 >50 individual Product and Platform enhancements over next 18 months 5 Consistent growth in Dividend Pe
Slide 27: Building Capability for Future Potential
BUILDING CAPABILITY FOR FUTURE POTENTIAL Strong capability and experience in all disciplines; Diverse TALENT workplace with strong development and succession programme Consistent re-investment into product development and innovation, PRODUCT driven by customer needs Strong digital and data capabilit
Slide 28: Informa Group Investor Day 2016 – London, UK
INFORMA GROUP INVESTOR DAY 2016 – LONDON, UK Please join Stephen A. Carter, Group CEO and Gareth Wright, Group FD on 6 October 2016 for: INFORMA GROUP PLC 2016 INVESTOR DAY LONDON Knowledge & Business Networking Intelligence And…pre-presentation entertainment and humour at dinner the evening before!
Slide 29: Appendices
APPENDICES INTERIM RESULTS PRESENTATION 28 JULY 2016 29
Slide 30: Return on Investment Metrics
RETURN ON INVESTMENT METRICS Last 3 years ROI on acquisitions % 2015 acquisitions - 1st year ROI 10.5 2014 acquisitions - 1st year ROI 6.8 2013 acquisitions - 1st year ROI 13.0 Group Return on Capital Employed (%) 2016 2015 2014 2013 2012 Group ROCE 9.7 9.3 8.8 8.9 8.3 ROCE: ((OP + interest income +
Slide 31: Balance Sheet Summary
BALANCE SHEET SUMMARY H1 2016 H1 2015 £m £m Intangibles and goodwill 2,879.1 2,566.8 Fixed assets 16.6 17.1 Other non-current assets 17.5 31.9 Current assets 341.7 306.8 Deferred income (384.3) (339.0) Other current liabilities (264.1) (259.7) Net debt (1,054.9) (911.7) Other non-current liabilities
Slide 32: Tax
TAX Profit/(loss) Tax ETR £m £m % Reported Profit Before Tax 98.9 8.8 8.9% Adjusted for: Restructuring and reorganization costs 2.6 1.2 Intangible asset amortisation 51.2 20.3 Acquisition and integration costs 6.5 Impairments 2.3 Subsequent re-measurement of contingent consideration (2.0) Loss on di
Slide 33: Free Cash Flow
FREE CASH FLOW H1 2016 H1 2015 £m £m Adjusted operating profit 202.2 190.3 Depreciation of property & equipment 3.0 3.1 Software and product development amortisation 6.1 6.2 Share-based payments 1.3 1.4 Adjusted share of joint venture results (0.1) 0.1 Adjusted EBITDA 212.5 201.1 Net capital expendi
Slide 34: Adjusting Items
ADJUSTING ITEMS H1 2016 H1 2015 £m £m Intangible asset amortisation 51.2 53.5 Impairment 2.3 - Restructuring and reorganisation costs 2.6 4.4 Acquisition and integration costs 6.5 0.9 Subsequent re-measurement of contingent consideration (2.0) 1.1 Adjusting items in operating profit 60.6 59.9 Loss/(
Slide 35: Currency
CURRENCY Average Rates Closing Rates Major Currencies H1 2016 H1 2015 H1 2016 H1 2015 USD 1.43 1.53 1.35 1.57 EUR 1.29 1.37 1.21 1.41 Impact of a 1 cent movement in 2016* USD £m EUR £m Revenue 5.6 0.8 Operating Profit 2.6 0.4 Net Debt 6.6 0.3 * The actual impact of currency on Group profit may be di
Slide 36: Net Debt Movement
NET DEBT MOVEMENT H1 2016 H1 2015 £m £m Net debt at 1 January (895.3) (876.2) Free cash flow 67.7 116.4 Dividends paid to Shareholders (86.8) (83.6) Dividends paid to non-controlling interest (0.9) (0.5) Acquisitions less disposals (53.5) (71.3) Shares acquired (0.2) (0.3) Non-cash movements (0.8) (
Slide 37: Corporate Responsibility
CORPORATE RESPONSIBILITY ENVIRONMENT CYBER SECURITY SUPPLY CHAIN HEALTH & SAFETY PURPOSE COMMUNITY “Informa exists to connect people and businesses with knowledge so they can make CONTENT better decisions” DISCLOSURE DIVERSITY & ETHICS KNOWLEDGE INCLUSION INTERIM RESULTS PRESENTATION 28 JULY 2016 37
Slide 38: Sponsored ADR Programme
SPONSORED ADR PROGRAMME Informa ADRs trade on the US over-the-counter (OTC) market Symbol IFJPY ISIN US45672B305 Ratio 1 ADR : 2 ORD Effective date 1st July 2013 Underlying ISIN JE00B3WJHK45 Depositary Bank BNY Mellon For any questions relating to Informa ADRs, please contact BNY Mellon Lance Miller
Slide 39: Informa House, Howick Place, London
Informa House 5 Howick Place London SW1P 1WG +44 (0)20 7017 5000 info@informa.com informa.com