Slide 1: 2018 Half-Year Results
2018 HALF-YEAR RESULTS GROWTH CONTINUATION COMBINED WITH ACCELERATED INTEGRATION 25 JULY 2018 WWW.INFORMA.COM
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of the Group. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees o
Slide 3: H1 2018 Growth Continuation
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE H1 2018 GROWTH CONTINUATION 2018 HALF-YEAR RESULTS JULY 2018 3
Slide 4: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN Growth Acceleration Plan (GAP) GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy “ The goal is simple but demanding: progressively to return ever y par t of our business to growth, and simultan
Slide 5: Growth Continuation in H1 2018
GROWTH CONTINUATION…IN H1 2018 Academic Publishing Global Exhibitions Business Intelligence Knowledge & Networking +3.5% +7.3% +2.4% +0.5% INFORMA GROUP GROWTH Underlying Underlying Earnings Free Cash Dividends Revenue* Profit* Per Share Flow Per Share +4.3% +1.9% +2.5% +4.9% +6.0% 2018 HALF YEAR RE
Slide 6: Growth Continuation in H1 2018
GROWTH CONTINUATION…IN H1 2018 UNDERLYING REVENUE GROWTH (%) 1 ADJUSTED EPS (P)2 4.5 4.3 25.0 CAGR 24.6 Average 24.0 2.9% 7.4% 4.0 3.7 23.0 3.5 21.3 3.0 21.0 20.6 2.5 2.5 19.0 18.5 1.9 2.0 2.0 17.0 1.5 1.0 15.0 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 PERFORMAN
Slide 7: Growth Continuation in H1 2018
GROWTH CONTINUATION…IN H1 2018 GROWTH Continuing improvement in underlying revenue growth PERFORMANCE Profit and earnings growth despite depreciation and currency headwinds STRONG Free cash flow conversion EFFICIENT Balance sheet gearing at upper end of target range following UBM RETURNS Cash discip
Slide 8: Upper Level Specialist Academic Content
UPPER LEVEL SPECIALIST ACADEMIC CONTENT ACADEMIC PUBLISHING REVENUE BY TYPE H1 PERFORMANCE AND GROWTH – Improved performance in Books Subscriptions – Operational effectiveness programme Copy Sales – Growth in physical and digital H1 2018 – Consistent high renewals in Journals – Strong performance in
Slide 9: Divisional Performance and Growth
DIVISIONAL PERFORMANCE AND GROWTH GLOBAL EXHIBITIONS UBM H1 PERFORMANCE AND GROWTH H1 PERFORMANCE AND GROWTH – Continued strong underlying trading – Trading in line with expectations, with improving levels of growth – Health & Nutrition (Natural Products Expo, Vitafoods), – 1.1% underlying revenue g
Slide 10: Divisional Performance and Growth
DIVISIONAL PERFORMANCE AND GROWTH BUSINESS INTELLIGENCE KNOWLEDGE & NETWORKING H1 PERFORMANCE AND GROWTH H1 PERFORMANCE AND GROWTH – Improving levels of growth – Steady improvement in growth despite non-renewal of £3m – Consistent subscription renewals around 90% managed events contract in TMT – Mom
Slide 11: Creation of New Informa: Best of Both
CREATION OF NEW INFORMA: BEST OF BOTH International Data Scale NEW INFORMA Strength A leading B2B information services company Vertical Face-to-Face Scale Platforms Specialist Knowledge 2018 HALF YEAR RESULTS JULY 2018 11
Slide 12: 2018-2019 Accelerated Integration Plan
2018-2019 ACCELERATED INTEGRATION PLAN Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Leadership Progressive Cost & Fashion Brand Model & & Talent Portfolio Revenue GAP Value Verticals Management Synergies A 12-month phased programme of activity to combine Informa and UBM 2018
Slide 13: AIP: 12-Month Phased Programme of Activity
AIP: 12-MONTH PHASED PROGRAMME OF ACTIVITY PHASE 1 PHASE 2 PHASE 3 PHASE 4 DISCOVERY AMBITION COMBINATION COMPLETION & VALIDATION & CREATION August – November 2018 November 2018 March – July 2019 June – August 2018 – March 2019 • Learn more about each • Finalise new operating • Start to operate as a
Slide 14: H1 2018 Financial Performance
GARETH WRIGHT GROUP FINANCE DIRECTOR H1 2018 FINANCIAL PERFORMANCE 2018 HALF-YEAR RESULTS JULY 2018 14
Slide 15: 2018 Half Year Results
2018 HALF YEAR RESULTS 4.6% +3.3% 6.0% Higher Reported Revenue, Increased Adjusted Enhanced Dividend Operating Profit despite FX headwind Per Share +3.3% to £294.4m (H1 2017: £284.9m) +4.6% to £957.1m up 6.0% to 7.05p (H1 2017: £915.3m) (H1 2017: 6.65p) +2.5% Growth in Adjusted Diluted EPS +4.3%
Slide 16: Improving Underlying Revenue Growth
IMPROVING UNDERLYING REVENUE GROWTH H1 2018 H1 2017 Actual Underlying £m £m % % Revenue Academic Publishing 238.5 238.9 -0.2 3.5 Global Exhibitions 343.1 342.8 0.1 7.3 Business Intelligence 180.3 187.5 -3.8 2.4 Knowledge & Networking 126.2 146.1 -13.6 0.5 UBM 69.0 Group 957.1 915.3 4.6 4.3* Adjusted
Slide 17: Revenue Growth Mix
REVENUE GROWTH MIX H1 2018 REVENUE GROWTH (%) +7.4% -0.4% -6.7% Phasing & Other +4.3% Currency Expansion +4.6% & Scale Underlying Reported (excluding UBM) (including UBM) 2018 HALF YEAR RESULTS JULY 2018 17
Slide 18: Growth in Revenue, Adjusted Profit and Earnings
GROWTH IN REVENUE, ADJUSTED PROFIT AND EARNINGS H1 2018 H1 2017 £m £m Revenue 957.1 915.3 Adjusted Operating Profit 294.4 284.9 Growth Adjusted Operating Margin – Improving underlying growth – Reported growth impacted by currency Net interest -29.7 -28.7 Adjusted profit before tax 264.7 256.2 Operat
Slide 19: Strong Free Cash Flow Growth
STRONG FREE CASH FLOW GROWTH Increased Free Cash Flow – Strong underlying cash flow – Lower Capex post GAP Investment programme – Higher Depreciation post GAP Investment programme – Working Capital outflow due to deferred revenue phasing in UBM £119.4m 2018 Free Cash Flow >£475m £113.8m +4.9% 2018
Slide 20: Continuous Reinvestment for Growth
CONTINUOUS REINVESTMENT FOR GROWTH 100.0 5.0 – Increased capex in recent years reflecting GAP Investment – Depreciation/Amortisation flow- 80.0 4.0 through as products and platforms go live 60.0 3.0 – Capex as a % of sales falling as Depreciation % rises – Short-term Impact on drop- 40.0 2.0 through
Slide 21: Long-Term Flexible Financing
LONG-TERM FLEXIBLE FINANCING NET DEBT BRIDGE (£m) 2,713.0 Efficient balance sheet – 3.1x covenant gearing at end June – 10-year maturity profile – Balanced mix of funding sources UBM financing terms renegotiated 1,373.1 – Guarantor structure aligned across all debt classes – Financial covenants alig
Slide 22: Improving Operational and Financial Performance
IMPROVING OPERATIONAL AND FINANCIAL PERFORMANCE FREE CASHFLOW (£m) DIVIDEND PER SHARE (P)* 7.05 130.0 7.0 CAGR 5% CAGR 17% 119.4 120.0 113.8 6.65 110.0 6.5 101.4 100.0 6.26 89.2 90.0 6.03 6.0 5.89 80.0 70.0 64.7 60.0 5.5 50.0 40.0 5.0 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 2014 H1 2015 H1 2016 H
Slide 23: Focused on Full Year Delivery
FOCUSED ON FULL YEAR DELIVERY Forward visibility Attractive margins ✓ >65% Exhibitions and Subscriptions 30%+ ✓ Strong Free Cash Flow Efficient Balance Sheet ✓ c.£600m annually* 3.1x at end H1 ✓ Steady investment Consistent returns ✓ 3-5% of revenue +6.0% DPS ✓ 2018 HALF YEAR RESULTS JULY 2018 23 *P
Slide 24: H1 2018 Accelerated Integration
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE H1 2018 ACCELERATED INTEGRATION 2018 HALF-YEAR RESULTS JULY 2018 24
Slide 25: Accelerated Integration Plan
ACCELERATED INTEGRATION PLAN Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Progressive Cost & Leadership Fashion Brand Model & Portfolio Revenue & Talent GAP Value Verticals Management Synergies A 12-month phased programme of activity to combine Informa and UBM 2018 HALF YEAR
Slide 26: AIP Operating Model & Progressive Portfolio Management
AIP OPERATING MODEL & PROGRESSIVE PORTFOLIO MANAGEMENT AIP INCREASING AIP OPERATING MODEL MARKET/VERTICAL FOCUS PROGRESSIVE PORTFOLIO & VERTICALS & ORIENTATION MANAGEMENT Accelerate verticalisation in information UBM operating model in Asia CUSTOMER FIRST and content-led businesses as well as events
Slide 27: AIP Leadership & Talent…Best of Both
AIP LEADERSHIP & TALENT…BEST OF BOTH Chief Finance Know ledge & Academic Global Business Executive Director Netw orking Publishing Exhibitions Intelligence Strategy & Legal & IR & Business Internal Audit UBM Asia Technology Cosec Comms Planning HR/ Shared Treasury Finance Technology Taxation Talent
Slide 28: AIP Leadership & Talent…Best of Both
AIP LEADERSHIP & TALENT…BEST OF BOTH Chief Finance Know ledge & Academic Global Business Executive Director Netw orking Publishing Exhibitions Intelligence Strategy & Legal & IR & Business Internal Audit UBM Asia Technology Cosec Comms Planning HR/ Shared Treasury Finance Technology Taxation Talent
Slide 29: AIP Cost and Revenue Synergies
AIP COST AND REVENUE SYNERGIES Corporate Overhead Management & Support Procurement Increased Synergy Delivery £60m £75m 2019 2020 2021 in-year run-rate run-rate £50m £60m £75m * One-off cost to achieve target of £100m Attractive Revenue Opportunities 6-Step Revenue Growth Plan Sponsorship Cust
Slide 30: AIP Fashion GAP
AIP FASHION GAP Challenges & Opportunities Fashion Brands – Evolving retail landscape – Consumer purchasing moving on line – Fast Fashion – Market fragmentation – Internal issues: loss of key talent, brand management and pricing strategy – Fashion c. 5% of Informa Group revenue – Opportunity to refr
Slide 31: Growth Acceleration Plan for the Fashion Portfolio
GROWTH ACCELERATION PLAN FOR THE FASHION PORTFOLIO 1 Support, refresh and invest in talent 2 ±£10m investment in key brands, experience and price 3 Target new customer growth segments 4 Sales and marketing excellence / Customer service 5 Content and education 2018 HALF YEAR RESULTS JULY 2018 31
Slide 32: AIP Brand Value
AIP BRAND VALUE Brand Value – Focus on product/vertical brands – Informa corporate brand – UBM brand to be retired by end of AIP – Brand Transition Programme 2018 HALF YEAR RESULTS JULY 2018 32
Slide 33: Growth Continuation & Accelerated Integration
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE 2018 GROWTH CONTINUATION & ACCELERATED INTEGRATION 2018 HALF-YEAR RESULTS JULY 2018 33
Slide 34: 2018 Accelerated Integration
2018 ACCELERATED INTEGRATION Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Progressive Cost & Leadership Fashion Brand Model & Portfolio Revenue & Talent GAP Value Verticals Management Synergies – Events-led and – Best of both – Accelerate shift to – Cost synergies – 3-year pl
Slide 35: 2018 Growth Outlook
2018 GROWTH OUTLOOK Underlying Strong Continuous Revenue Improving Progressive Cashflow reinvestment Performance Dividend 3.5%+ for growth >£475m 2018 GROWTH CONTINUATION ACADEMIC GLOBAL UBM BUSINESS KNOWLEDGE & PUBLISHING EXHIBITIONS PORTFOLIO INTELLIGENCE NETWORKING c.2% underlying 5%+ underlying
Slide 36: Appendices
APPENDICES 2018 HALF YEAR RESULTS JULY 2018 36
Slide 37: Key Industry Verticals
KEY INDUSTRY VERTICALS Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate Humanities & Technology Beauty & Aesthetics Transportation Fashion & Jewellery Social Science Anderson Books 2018 HALF YEAR RESULTS JULY 2018 37
Slide 38: Balance Sheet Summary
BALANCE SHEET SUMMARY H1 2018 H1 2017 £m £m Intangibles and goodwill 10,090.7 4,421.8 Fixed assets 83.0 25.9 Other non-current assets 144.4 15.3 Current assets 639.8 391.3 Deferred income (784.0) (400.7) Other current liabilities (620.1) (307.8) Net debt (2,713.0) (1,566.4) Other non-current liabili
Slide 39: Tax Summary
TAX SUMMARY H1 2018 Tax ETR £m £m % Reported Profit Before Tax 120.3 25.7 21.4 Adjusted for: Intangible asset amortisation and impairment 81.3 15.4 Restructure and reorganisation costs Redundancy and restructuring costs 7.3 2.3 Vacant property costs 2.8 0.7 Acquisition and integration costs 52.2 3.4
Slide 40: Operating Cash Flow Summary
OPERATING CASH FLOW SUMMARY H1 2018 H1 2017 £m £m Adjusted operating profit 294.4 284.9 Depreciation of property and equipment 4.3 4.7 Software and product development amortisation 17.9 11.1 Share-based payments 2.4 2.4 Adjusted share of joint venture and associate results (0.1) (0.2) Adjusted EBITD
Slide 41: Other Adjusting Items
OTHER ADJUSTING ITEMS H1 2018 H1 2017 £m £m Intangible asset amortisation 81.3 79.4 Impairment - 2.8 Restructuring and reorganisation 10.1 8.6 Acquisition and integration 52.2 12.1 Subsequent re-measurement of contingent consideration (0.8) - Adjusting items in operating profit 142.8 102.9 Loss on d
Slide 42: Currency Sensitivity
CURRENCY SENSITIVITY Major Currencies Average Rates Closing Rates H1 2018 H1 2017 H1 2018 H1 2017 USD 1.37 1.26 1.32 1.30 On a proforma basis (including a full year of UBM), the impact of a 1 cent movement: Revenue £13m Adjusted Operating Profit £5m 2018 HALF YEAR RESULTS JULY 2018 42
Slide 43: 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 Damon Rowan