Slide 1: 2021 Full Year Results
2021 Full Year Results 30 November 2021 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Future plc (the “Company”) and its subsidiaries (togeth
Slide 3: Highlights
Highlights FuTURE
Slide 4: Exceptional results, ahead of expectations
+23% organic revenue growth (2-year Continued organic average 15%), driven by Media (+27%) and growth the US (+27%) Exceptional results, ahead of Strong operating leverage (+4ppt adjusted expectations : operating profit margin to 32%) Platform effect drives Strategy continues operating leverage Consi
Slide 5: Financial Review
Financial Review FuTURE
Slide 6: Record results: financial highlights for the twelve months to September 2021
Record results: financial highlights for the 12 months to 30 September 2021 Revenue Adj. Operating Adj. Free Cash £606.8m profit £195.8m Flow £199.3m +79% +110% 102% conversion Organic revenue Adj. diluted Net debt growth EPS 131.9p £176.3m +23% +77% 0.8x Leverage* 6 See appendix for definitions * Leve
Slide 7: Adding another set of strong results to our track record
Adding another set of strong results to our track record +59% CAGR +134% CAGR +112% CAGR +72% CAGR 7 See appendix for definitions
Slide 8: Revenue: reported growth underpinned by strong organic growth
Revenue: reported growth underpinned by strong organic growth 2-year Gross Strong organic growth (+23%) complemented by Revenue FY 2021 Reported Organic average contribution contribution from acquisitions £m growth growth organic % growth H2 strong organic performance (+26%) driven by both Media 422
Slide 9: Media: continued momentum across all revenues
Media: continued momentum across all revenues FY 2021 FY 2020 Reported Organic growth H2 strong organic performance (+24)% growth 2-year £m £m FY FY average Digital advertising up +27%, with high yielding directly sold advertising increasing and strong Digital advertising 186.6 140.2 +33% +27% +21%
Slide 10: Magazines: recovery driven by comparators
Magazines : recovery driven by comparators FY 2021 FY 2020 Reported £m £m growth Newstrade 85.2 43.7 +95% Strong recovery in H2 (+34% organic growth) against soft comparators (-45%) as we lap the accelerated decline Subscriptions 47.2 30.0 +57% due to the pandemic Print ads & other 51.6 28.6 +80% Re
Slide 11: Robust GoCo performance
Robust GoCo performance FY 2021 Growth Since acquisition Mar-Sept % £m Rewards (MVC) MyVoucherCodes (MVC): strong 4.6 +61% performance driven by improved SEO Price Comparison (GoCompare) rankings driving greater volumes and 94.5 +8% conversion Other 1.4 (46)% GoCompare: overall good revenue growth R
Slide 12: Continued momentum driving improved profit margin
Continued momentum driving improved profit margin £m FY 2021 FY 2020 YoY Var Revenue 606.8 339.6 +79% Gross contribution margin dilution of (3)ppt due to a full year contribution of TI Media Gross contribution1 459.9 266.7 +72% with a higher magazines weighting and Gross contribution margin 76% 79% (
Slide 13: Driving profitable growth by design
Driving profitable growth by design Continuous improvement in profitability is supported by: Revenue mix Platform effect Scalable business model Revenue by division as Sales, marketing and editorial costs Overhead costs as a % of revenue a % of revenue % of revenue Higher margin (~80% vs ~60%) Multipl
Slide 14: Operating model drives continued margin progression
Operating model drives continued margin progression (2)ppt Mix driven by a higher proportion of Media revenue with greater gross +1ppt +5ppt contribution Platform effect driven by ability to scale up revenue without increasing overheads by the same proportion and cost 28% 32% synergies from acquisit
Slide 15: Cash flow demonstrating strong conversion of profits
Cash flow demonstrating strong conversion of profits £m FY 2021 FY 2020 Adjusted cash generated before changes Adjusted free cash flow up +108% yoy to £199.3m, in working capital and provisions1 209.1 92.4 translating to adjusted free cashflow %3 of 102% Adjusted movement in working capital and provisio
Slide 16: Consistent strong cash generation enables fast de-levering
Consistent strong cash generation enables fast de-levering ● In November 2020, the Group increased its debt facilities to fund the acquisition of GoCo through a £215m two-year term loan. In July 2021, the Group undertook a further Amend & Extend to increase its facilities which now comprise a three
Slide 17: Capital allocation enables efficient value creation cycle
Capital allocation enables efficient value creation cycle Revenue mix Platform effect Scalable business model Strict capital allocation focused on value creation OPERATING MARGIN GROWTH +27ppt 2016-2021 and returns, with 4 priorities: Asset light Organic investment to support 1 the ongoing growth in
Slide 18: Strategy & Business Update
Strategy & Business Update 18
Slide 19: Strategy
Strategy Future is a global platform for intent- led specialist media underpinned by technology, enabled by data; with diversified revenue streams We help people to do the things that matter in their life, our content and brands give them a place they want to spend their time while meeting their need
Slide 20: Strong track record underpins confidence for further growth
Strong track record underpins confidence for further growth Online users (m) +58% CAGR DRIVING ORGANIC GROWTH THE PLATFORM Adjusted EPS (p) EFFECT +72% CAGR CREATING VALUE THROUGH ACQUISITIONS Adjusted FCF (£m) +112% CAGR STRONG TRACK RECORD 20 Online users are taken from Google Analytics. Unless oth
Slide 21: Growing valuable audiences
Growing valuable audiences 21
Slide 22: A global audience and reach
DRIVING ORGANIC GROWTH A global audience and reach... 432m Total audience reach* 305m Online users** +10% YoY vs FY 2020 +8% YoY VS FY 2020 +26% 2019-2021 CAGR +30% 2019-2021 CAGR 1 in 2 In the UK and 1 in 3 in the US Online reach*** in FY 2021, 4x more than in FY 2018 * Audience reach includes: onl
Slide 23: ...delivering consistent growth
DRIVING ORGANIC GROWTH ...delivering consistent growth Organic growth Online Media users* revenue FY 2021 (8)% +27% Average 2-year organic: +20% FY 2019-2021 average +20% +25% FY 2017-2021 average +23% +31% *Online users are taken from Google Analytics. Unless otherwise stated, online users are mont
Slide 24: A spotlight on digital advertising & eCommerce
A spotlight on digital advertising & eCommerce 24
Slide 25: A high-value, intent-led audience drives advertising yield
DRIVING ORGANIC GROWTH A high-value, intent-led audience drives advertising yield +27% +9% +5ppt +2ppt Organic ads revenue Ads yield improvement Mix of direct advertising Video mix to 12% of growth yoy H2 over H1 revenue digital advertising 1P data moving 59% direct (First FUTURE AUDIENCE from party
Slide 26: eCom for products - trends and performance
DRIVING THE ORGANIC PLATFORM GROWTH EFFECT eCom for products - trends and performance £0.9bn (+63%) +22% H2 yield rate +8% Gross sales value H2 conversion (FY (4)%) transacted ● Deployment of the strategy (tech and content) = better performance ○ Further Hawk integration Vanilla, improving the user
Slide 27: Sustaining long-term growth through our Verticals
Sustaining long-term growth through our Verticals 27
Slide 28: Vertical optimisation drives longer term growth underpinned by editorial strategy
CREATING DRIVING THE VALUE ORGANIC PLATFORM THROUGH GROWTH EFFECT Vertical optimisation drives longer term growth underpinned by editorial strategy ACQUISITIONS ● Our mature verticals historically deliver around 10-20% audience and revenue growth, as a consequence of ensuring we use analytics to exp
Slide 29: Sustainable Growth: Tech & Gaming
DRIVING THE ORGANIC PLATFORM GROWTH EFFECT Sustainable Growth : Tech & Gaming Online user growth delivers consistent media 164.8m online users1 revenue growth 2-year CAGR 2-year CAGR ComScore2 ranking for Tech online audience Media revenue #1 in the UK and the US Tech +16% +26% ComScore2 ranking for
Slide 30: Expanding in verticals: Cycling
CREATING DRIVING THE VALUE ORGANIC PLATFORM THROUGH GROWTH EFFECT Expanding in verticals: Cycling ACQUISITIONS 12.4m online users1 ComScore2 ranking for cycling +31% in FY 2021 #1 in the UK, #2 in the US ● Benefit of scale for advertisers ● Ability to rank through SEO best practice ● Preferred partne
Slide 31: Expanding in verticals: Homes
CREATING DRIVING THE VALUE ORGANIC PLATFORM THROUGH GROWTH EFFECT Expanding in verticals: Homes ACQUISITIONS 7.7m online users #1 ComScore1 ranking in the UK +22% in FY 2021 #14 ComScore1 in the US (#42 in 2019) 12 magazines 6 events 62 bookazines 6 websites Main brands Organic TI Media INVESTING OR
Slide 32: Driving revenue growth from acquisitions
CREATING DRIVING THE VALUE ORGANIC PLATFORM THROUGH GROWTH EFFECT Driving revenue growth from acquisitions ACQUISITIONS Move to Future operating model, is driving digital growth, accelerating the change in revenue mix from legacy magazines revenues, target to be north of 50% eCom and digital ads rev
Slide 33: Accelerating the strategy with value creative acquisitions
Accelerating the strategy with value creative acquisitions 33
Slide 34: Accelerating the strategy with value creative acquisitions
CREATING VALUE THROUGH Accelerating the strategy with value creative acquisitions ACQUISITIONS 2020 2021 2022 Integration/cost synergies December 2019 Strategic Revenue synergies Integration/cost synergies April 2020 Transformational Revenue synergies October 2020 Integration/cost synergies Tactical
Slide 35: GoCo strategic update - initiatives on track
CREATING VALUE THROUGH GoCo strategic update - initiatives on track ACQUISITIONS Business acquired in February 2021, integration completed and great progress on revenue synergy realisation 5 key objectives Progress 01 Cost synergies and integrations 100% ● £15m cost synergies (50% upgrade in May 202
Slide 36: Dennis strategic update and cost synergies
CREATING VALUE THROUGH Dennis strategic update and cost synergies ACQUISITIONS Strategic rationale Integration & cost synergies update ● Integration well progressed, new operating model in 01 Scale the ‘Wealth’ vertical place, payroll migrated in Nov, Finance Jan and IT Dec 02 Extend reach in North
Slide 37: Our Future, Our Responsibility
A sustainable business delivering values for all our stakeholders Our Future, Our Responsibility 37
Slide 38: Our ESG ambitions to 2025
Our Future, Our Responsibility Our ESG ambitions to 2025, building a more sustainable future for our communities and planet Future Differentiation Future Foundation Expanding The culture Shaping the Taking horizons behind the future responsibility company Connecting Leading Great content Going furth
Slide 39: Summary & Outlook
Summary & Outlook FuTURE
Slide 40: Adding another exceptional strong year of performance to our track record
Summary & Outlook Adding another exceptional strong year of performance to our track record Relentless focus on execution of the strategy underpinning margin progression Dennis opportunity, growth from newer verticals Creating value for all stakeholders with the launch of our responsibility strategy
Slide 41: Future
FUTURE 41
Slide 42: Appendix
Appendix 42
Slide 43: Delivering diversified revenue streams through the specialist media platform
Delivering diversified revenue streams through the specialist media platform UK ROW 305m online users1 Australia North America FY 2021 Online Audience by Territory FY 2021 Verticals 1 Online users: source is Google Analytics. Excludes forums because they are non-commercial websites which Future does
Slide 44: Revenue breakdown
Revenue breakdown FY 2021 H2 2021 Print ads & other Print ads & other Digital ads on platform Subscriptions Digital ads on platform Subscriptions Newstrade Digital ads off platform (email & AVOD) Newstrade Digital ads off platform (email & AVOD) Events, digital licensing, other online Events, digita
Slide 45: Revenue breakdown by divisions - Full year
Revenue breakdown by divisions - Full year FULL YEAR FY 2021 FY 2020 Reported Organic growth growth UK US Total UK US Total £m £m £m £m £m £m Digital display advertising on platform 47.6 89.9 137.5 31.6 68.0 99.6 38% 26% Digital display advertising off platform 13.9 35.2 49.1 11.2 29.4 40.6 21% 28%
Slide 46: Audience - Top organic and reported brands online users
Audience1 - Top 10 organic and reported brands online users Top 10 organic FY 2021 FY 2020 FY 2019 CAGR Top 10 reported FY 2021 FY 2020 FY 2019 CAGR brands FY 2021 2019-2021 brands FY 2021 2019-2021 millions growth millions growth TechRadar 42.4 (5)% 31.6 +16% TechRadar 42.4 (5)% 31.6 +16% Toms Guid
Slide 47: Online users in FY 2021 - unusual comparators
Online users in FY 2021 - unusual comparators 2-year reported CAGR: +30% Online users (27)% (+11% 2-year CAGR) Media revenue +5% (ads and eCom) LiveScience decline in online users is driving 3ppt drop in organic audience 47
Slide 48: Growth through platform effect ongoing investment in highly scalable proprietary technology stack
Growth through platform effect ongoing investment in highly scalable proprietary technology stack Vanilla is our single modular web platform, Assets Websites Monetisation it has a single content management system Hawk is our our eCommerce service that enables the monetisation of our content Tech Ser
Slide 49: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth defined as the like for like portfolio at constant FX rates (i) excluding acquisitions and disposals made during FY 2020 and FY 2021 and (ii) including the impact of closures and new launches. Constant FX rates is defined as the average rate for FY
Slide 50: Market positions
Market positions ● Future Tech is #1 in comScore Ranked Category News/Information - Technology News for the UK September 2021 ● Future Home is #1 in comScore Ranked Category Lifestyles - Home/Architecture for the UK September 2021 ● TECHRADAR.COM is #1 in Future Plc curated Competitor Set Consumer T