Slide 1: Technology and Resources for Education
eC RM pic Technology and Resources for Education Year to 30 November 2020 David Brooks Neil Martin f Executive Offic hief Financial Offi © 2021, RM ple — February 2021
Slide 2: Agenda
AGENDA David Brooks — Summary - FY20 overview and FY21 focus - Current market backdrop Neil Martin — FY20 Results - Financial review - Divisional review David Brooks — Focus & Outlook - Market trends - Outlook Q&A
Slide 3: Summary
—» SUMMARY RM plc 2020 Performance O _ Financial performance materially impacted by COVID-19 with school closures and exam cancellations globally O Trading improved progressively through H2 as education establishments reopened O Focus on cash and costs enabled a robust financial position with net de
Slide 4: Current Market Backdrop
—» CURRENT MARKET BACKDROP Closures of schools and widespread exam cancellations continue GLOBAL MONITORING OF SCHOOL CLOSURES CAUSED BY COVID-19 Learners impacted i Open 1 Localized 1 Country-wide Academic break 1 February 2021 Current update in UK schools + UK Schools are closed. Possible phased r
Slide 5: Financial Summary
RM plc Financial Summary RM plc re
Slide 6: £1m 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
£1m 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Slide 7: Quarterly Revenue Development
y QUARTERLY REVENUE DEVELOPMENT 5% 0% -5% -10% -15% -20% -25% -30% -35% RM plc Ql Q2 Q3 Q4 Growth driven by RM Results +25% and RM Education +7% School closures and exam cancellation as COVID-19 pandemic impacts education systems worldwide Partial recovery as some primary school year groups returned
Slide 8: Operating profit bridge by division
2019 RM RM RM 2020 2019 RM RM RM Corporate 2020 Resources Results Education Resources Results Education
Slide 9: Income Statement
—» INCOME STATEMENT £m 2020 2019 Variance Revenue 189.0 223.8 -16% Adjusted Operating Profit 14.4 27.6 -48% Operating Margin 7.6% 12.4% -4.8pp | Interest (1.0) (1.0) -3% © Interest costs reflect debt facility charges and finance costs related to the defined benefit pension schemes Adjusted Profit be
Slide 10: Cashflow and Pension
—» CASHFLOW AND PENSION 15.0 10.0 5.0 » 00 € a 5.0 -10.0 -15.0 -20.0 4% 1% RM plc Nov 30 Cash Pensions Tax & Capex 2019 generated interest by operations mz 2015 2016 2017 2018 mmm Pension deficit ——Discount rate Dividends = Other 2019 2020 ——RP/ inflation Nov 30 2020 1AS19 Deficit level (Em) Cash Fl
Slide 11: 2020 Divisional Review
: i A —— “one -* {a a yy - FMM reeey Wee RM plc =: == SS — 2020 Divisional _ MAES — Review
Slide 12: RM Resources
RM RESOURCES Year dominated by COVID-19 but swift recovery in line with school openings © UK schooland nursery closures in March had Year on year Revenues significant impact until full reopening in September O Quarter 4 improved materially in the UK leading to sales ahead of the previous year © Inte
Slide 13: RM Results
RM RESULTS Robust performance despite scale of exam cancellations O Revenue down 16% in 2020 with increased revenue from new clients materially offset by Ceeshel sy Peon Bodies Cancellations widespread exam cancellations 2020 © Payment levels agreed with all Awarding Bodies UK General Exams 4 75% re
Slide 14: Resilient underlying performance
Resilient underlying performance
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Slide 16: Market Trends
Market Trends Becoming More Digital Change to teaching and learning, the running of establishments and how products and services are bought Learners engaging remotely and learning model evolving Increasing use of technology as different types of assessment are also considered Groupings of education
Slide 17: Market Trend: Becoming More Digital
—> Market Trend Becoming More Digital © The Trend Adoption of online buying channels of education supplies away from traditional off-line purchases following catalogue browsing Our response Implementation of new web platform and investment in digital and social media technology Example of progress D
Slide 18: RM's Digital and Automation Progress
RM's DIGITAL AND AUTOMATION PROGRESS eb New warehouse complete - Foundation step complete - Sales agreed of all freehold properties - Automation provider agreed and contracted - Office staff move April 2021 RM plc RM Resources first to go live with digital solution - Migration from disconnected syst
Slide 19: Market Trend: Modernisation of Assessment
_» Market Trend Modernisation of Assessment O The Trend Need for computer-based testing in flexible locations, including home © Our response Provide end-to-end secure platform for on-screen assessments including remote invigilation Oo Example of progress Won two end-to-end digital assessment contrac
Slide 20: Market Trend: Flexible Learning
_ Market Trend Flexible Learning O The Trend Schools need to provide onsite and offsite access to the learning environment © Our response Help schools provide learning materials and stakeholder engagement in the Cloud o Example of progress Launch of a new managed services proposition for UK schools
Slide 21: Market Trend: Buyer Aggregation
y Market Trend \ . Buyer Aggregation © The Trend Multi Academy Trusts and Nursery Chains buying products and services on behalf of their establishments © Our response Dedicated sales teams and customised products and marketing for consolidated groups © Example of progress RM Resources have won over
Slide 22: Outlook
RM plc Outlook RM plc
Slide 23: Outlook
—» Outlook 2021 © Strong financial position oe | O Another year where education systems are impacted by COVID-19 oO. Significant year for Digital and Automation projects C Longer Term O Market opportunity creates a positive backdrop RM plc
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Slide 25: Appendix
RM plc APPeNdiX, ce *.
Slide 26: Divisional Summary
—» DIVISIONAL SUMMARY Revenue £M Adjusted Operating Margin 2020 2019 Variance 2020 2019 Variance RM Resources 92.4 114.5 -19% RM Resources 3.3% 12.0% -8.7pp RM Results 31.6 37.7 -16% RM Results 20.9% 23.2% -2.3pp RM Education 65.0 71.6 -9% RM Education 14.3% 14.5% -0.2pp Group 189.0 223.8 -16% Group
Slide 27: Income statement 12 months to 30 November
£M Revenue Cost of sales Gross profit Gross profit % Operating expenses Amortisation of acquisition related intangibles Restructuring provision Impairment of intangible asset Pension GMP charge Acquisition related costs Gain on sale of non-core asset Property related costs Operating profit Operating
Slide 28: Operating Cash Flows
OPERATING CASH FLOWS - £M 2020 2019 Profit from operations 24.2 Amortisation & impairment of intangibles 27 Depreciation & impairment of PPE 1.6 Share-based payments 0.7 Increase/(decrease) in provisions (0.8) Other adjustments 0.3 Operating cash flows before movements in working capital 28.6 Decrea
Slide 29: Balance Sheet
BALANCE SHEET £M 30 NOV 2020 30 NOV 2019 Goodwill 49.1 Intangible assets 23.3 Property, plant & equipment 9.2 Defined benefit pension surplus 1.0 Other receivables 0.9 Right to use Asset - Contract fulfilment assets 2.2 Deferred tax assets 3.5 Total non-current assets 89.1 Inventories 22.2 Trade & o
Slide 30: RM Resources
» RM Resources Helping teachers to teach and learners to learn by developing engaging and inspiring resources and internationally i Provide education supplies and curriculum . WHAT WE DO products for schools and nurseries inthe UK gg resources focused on improving VALUE learning outcomes classroom p
Slide 31: Driving the global modernisation of assessment
Driving the global modernisation of assessment A global leader in providing digital assessment solutions that support lifelong learning HOW WE ADD VALUE Secure, seamless and hassle-free e-assessment and data analysis Improve the quality, efficiency and speed of our customer's assessment cycle THE OP
Slide 32: Helping UK schools to improve the impact of technology on teaching and learning
y Helping UK schools to improve the impact of technology on teaching and learning Software, services and technology provider to UK schools and colleges Delivering cost effective, Helping schools to make the reliable and secure most of their IT investment technology for local and remote learning Grow