Slide 1: 2013 Half-Year Results
2013 Half-Year Results Peter Rigby: Chief Executive Adam Walker: Finance Director 30 July 2013
Slide 2: Introduction
Introduction Peter Rigby
Slide 3: H1 2013 Overview
H1 2013 Overview • Underlying growth in continuing operations • Disposal of non-core assets • Bolt-on acquisitions in line with strategic objectives • Further proactive reduction in small conference volume and marginal publishing products • Improving quality of earnings • Strong cash generation • St
Slide 4: Financial Summary
Financial Summary Adam Walker
Slide 5: Financial highlights - continuing
Financial highlights - continuing • Organic revenue growth of 1.2% to £566.7m • Adjusted operating profit growth of 2.7% to £162.0m • Adjusted operating margin up 60bps to 28.6% • Adjusted diluted EPS up 5.0% to 18.9p • Interim dividend increased 6.7% to 6.4p • Deferred income up 7% at constant curr
Slide 6: Divisional summary - continuing
Divisional summary - continuing H1 2013 H1 2012 Actual Organic Revenue £m £m % % Academic Information 164.7 154.0 6.9 3.7 PCI 171.0 173.3 -1.3 -4.1 Events 231.0 235.3 -1.8 3.6 Total 566.7 562.6 0.7 1.2 Adjusted Operating Profit Academic Information 54.0 51.2 5.5 5.6 PCI 46.4 54.0 -14.1 -17.1 Events
Slide 7: Income statement - continuing
Income statement - continuing H1 H1 2013 2012 £m £m Revenue 566.7 562.6 Adjusted operating profit 162.0 157.7 Amortisation -57.4 -57.1 Other adjusting items -11.5 -81.6 Operating profit 93.1 19.0 Net interest -13.8 -12.8 Loss on disposal -3.0 -25.6 Tax -16.9 -15.6 Profit/(loss) for the year 59.4 -35
Slide 8: Cash flow summary
Cash flow summary H1 H1 2013 2012 £m £m Adjusted operating profit (inc Corporate Training) 161.4 160.1 Depreciation and software amortisation 11.3 10.3 Share based payments 1.6 2.3 EBITDA 174.3 172.7 Net capital expenditure -8.8 -11.8 Working capital movement -52.6 -39.8 Operating cash flow 112.9 12
Slide 9: Net debt movement
Net debt movement H1 H1 2013 2012 £m £m Net Debt at 1 January -802.4 -784.0 Free cash flow 55.0 76.2 Dividends -75.3 -71.0 Net acquisition spend -61.8 -71.0 Foreign exchange -37.5 5.2 Other items * -0.5 -0.2 Net Debt at 30 June -922.5 -844.8 Net Debt/EBITDA (using average exchange rates) 2.4 2.3 * I
Slide 10: M&A activity
M&A activity • Investment focused around strategic objectives • Strict financial criteria on acquisitions • Strong track record of returns • 2012 acquisitions (Zephyr, MMPI) performing well • 2013 H1 highlights: • Disposal of Spanish & Italian conference businesses • Disposal of Corporate Training b
Slide 11: Disposal of Corporate Training
Disposal of Corporate Training • Five businesses, originally acquired with IIR in 2005 • Volatile trading, limited revenue visibility, weighted to Q4 • 2012 revenue of $194m and adjusted EBITA of $23.5m • Consideration of up to $180m from Providence Equity Partners • $165m initial consideration ($10
Slide 12: Financial summary
Financial summary • Underlying growth in revenue and profit through H1 • Interim dividend increase of 6.7% • Strong balance sheet with Corporate Training proceeds to come • Second half outlook remains healthy • Academic growth outlook positive • PCI sequential improvement in quarterly organic trends
Slide 13: Strategy Update
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Slide 14: Strategic drivers
HIGH QUALITY SUBSCRIPTION INCOME @ GEOGRAPHIC EXPANSION Strategic drivers DIGITAL EXCELLENCE RESILIENT EVENTS informa bringin nowledge to life
Slide 15: Proactive portfolio management
Proactive portfolio management • Selective disposals Italy & Spain conference businesses • Events Corporate Training businesses • Strategic acquisitions • Events Annual large events, emerging • Agrishow markets, proprietary ‘partnering’ • EBD Group technology • Deliberate product pruning • PCI Adver
Slide 16: Improving the quality of earnings
Improving the quality of earnings Revenue by type H1 2013 Revenue by type H1 2013 (continuing) (continuing) Emerging market revenue LTM H1 2013 Geographic revenue split H1 2013 (continuing) (continuing) 16
Slide 17: Academic Information
Academic Information Revenue by geography H1 2013 • ‘Must have’ information • Digital subscriptions • 1,761 journal titles • 88,700 book titles • Two thirds HSS, one third STM • Strong journal renewals Revenue by subject area H1 2013 • 23% of H1 book revenue was ebooks • Appointment of Director of O
Slide 18: Professional & Commercial Information
Professional & Commercial Information Revenue by geography H1 2013 • Proprietary content & strong brands • Niche focus: narrow and deep • Digital subscriptions; transition largely complete • Client decision-making still slow… • …but key large customers re-engaging • Overall market activity increasin
Slide 19: Events
Events Revenue by geography H1 2013 • 147 large events in H1 (continuing) • 7 new launches & geo-clones in H1 • Revenue from large events >60% • Double-digit H1 organic revenue growth in large events • 18.6% H1 organic profit growth in Events Revenue by product H1 2013 • Emerging markets 34% of LTM
Slide 20: Brazil exhibitions case study
Brazil exhibitions case study • Small conference business since 1990’s • Buy and build strategy on large events • Acquisition of BTS and Ibratexpo in 2011 • Food, furniture, franchising, printing etc • Close to £100m investment into the region • Now one of the two big exhibition players • 2013 June
Slide 21: Brazilian exhibitions: Agrishow
Brazilian exhibitions: Agrishow • Food sector booming in Brazil • Largest agricultural show in Latam • >400k sqm gross / 240k sqm net • >80,000 visitors from 67 countries • BRL 3bn of credit letters issued pre-show 21
Slide 22: Canadian exhibitions case study
Canadian exhibitions case study • Acquired MMPI in July 2012 for $53.4m • Non-core asset for previous owner • Portfolio of 46 exhibitions and conferences • Construction, real estate, food, design, art & craft • Investment in new launches and geo-clones • Delicious Food / Cargo Logistics Canada • Inv
Slide 23: Summary and outlook
Summary and outlook • Clear strategic objectives underpin strong first half performance • Non-core disposals sharpen focus and reduce volatility • Underlying growth and margin profile improving • Emerging market presence growing • Improving quality of earnings • Balance sheet flexibility • Attractiv
Slide 24: Appendix
Appendix
Slide 25: Long-term performance
Long-term performance Adjusted operating margin (%) Adjusted EPS (p): CAGR 11% Dividend per share (p): CAGR 15% Year-end net debt / EBITDA (x) 25
Slide 26: Vertical strength
Vertical strength • Building multi-platform strength across industry verticals • Global reach through geo-cloning and digital publishing • Leverage knowledge, contacts, brands across the group • Vertical strengths: • Healthcare & Life Sciences • Agri-Food & Commodities • Anti-Aging & Beauty • Teleco
Slide 27: Healthcare & Life Sciences
Healthcare & Life Sciences 27
Slide 28: Agri-Food & Commodities
Agri-Food & Commodities informa A osers 2 FOOD 4TH ANNUAL news ANIMALY [ey PH AR M CONFERENCES sud sustainable Energy ry ene, SUGAL a Public IN UKRAINE Outlook for Ledger FORUM 2013 Agriculture 2013 \ nforma economics WWE Neves SUES ET Energy AST a-net. com an informa business 2d industry Vitafoods
Slide 29: Anti-Aging & Beauty
Anti-Aging & Beauty BEYOND BEAUTY EVENTS EXHIBITION & CONGRESS * EuroMediCom 411° ANTLAGING MEDICINE WoRLD CONGRESS @ Aesthetic Dermatology and Surgery — Preventive and Anti-Aging Medicine, Medical Spa MONTE CARLO APRIL 456 Vitafoods finished _ products ( @ © europe The global nutraceutical event 14
Slide 30: Telecoms & Media
Telecoms & Media informa Digital TV telecoms & media : wv a Bre@adban tyco - - JBIGDATA ~~ Asia 2013 2 Contro! oo! cite SUA ican 2013 WBIS | CLOUD World Broadband Information Service SERIES VSAT2012 Cast GLOBAL SERIES « tVconnect co Latin America 2013 TRAINING EXCELLENCE WORLD SERIES Terabit {) ov L
Slide 31: Balance sheet
Balance sheet June June 2013 2012 £’m £’m Intangibles and Goodwill 2,493.5 2,596.2 Fixed Assets 18.2 18.1 Other Non-Current Assets 21.9 17.4 Current Assets 267.1 262.7 Other Current Liabilities -551.7 -623.4 Net Assets Held for Sale 78.8 - Net Debt -922.5 -844.8 Other Non-Current Liabilities -186.8
Slide 32: Operating adjusting items - continuing
Operating adjusting items - continuing H1 H1 2013 2012 £m £m Amortisation of intangible assets 57.4 57.1 Impairment - 80.0 Restructuring and reorganisation costs 7.3 1.4 Acquisition related costs 4.2 0.3 Subsequent re-measurement of contingent consideration - -0.1 Total 68.9 138.7 32
Slide 33: Tax
Tax Tax Effective PBT Charge tax rate £m £m % Tax on statutory results 76.3 16.9 22.1 Adjusted for: Restructuring and reorganisation costs 7.3 1.8 Acquisition related costs 4.2 - Amortisation of intangible assets 57.4 15.6 Loss on disposal of business 3.0 - Impact of UK corporation tax rate change -
Slide 34: Deferred income
Deferred income Constant H1 H1 Actual Currency 2013 2012 - continuing £m £m % % Publishing 187.1 179.9 4.0 3.3 Events 107.3 96.0 11.8 15.3 Total 294.4 275.9 6.7 7.4 34
Slide 35: Currency - continuing
Currency - continuing Average Rates Closing Rates H1 H1 June June 2013 2012 2013 2012 USD 1.5422 1.5838 1.5249 1.5580 EUR 1.1767 1.2128 1.1681 1.2387 BRL 3.1428 2.9455 3.3470 3.2362 Movement of 1 cent on the full year USD EUR £m £m Revenue 3.4 1.0 Adjusted Operating profit 1.5 0.4 Net debt 4.2 0.4 3
Slide 36: Return on investment
Return on investment 2011 acquisitions – 1st year ROI - 12.0% 2010 acquisitions – 1st year ROI - 12.5% 2009 acquisitions – 1st year ROI - 18.9% 2012 2011 2010 2009 2008 Group ROCE 9.2% 9.0% 8.8% 8.8% 8.1% ROI is defined as tax-affected Adjusted EBITDA in the First Year post-acquisition, as a proport
Slide 37: Thank you.
Thank you.