Slide 1: Half Year Results Presentation 28 July 2015
2015 HALF YEAR RESULTS PRESENTATION 28 JULY 2015
Slide 2: Stephen A. Carter, Group Chief Executive
STEPHEN A. CARTER Group Chief Executive
Slide 3: Progress with Performance
Progress with Performance • Solid revenue growth o +8.6% reflecting 2% underlying growth and positive returns from acquisitions • Improved adjusted operating profit o +14.2%, enhanced by first half weighting of US Exhibitions acquisition • Enhanced adjusted EPS o Growth of +8.5% to 21.8p • Strong fr
Slide 4: 2014-2017 Growth Acceleration Plan
2014-2017 Growth Acceleration Plan “The goal is simple but demanding: to progressively return every part of our business to growth, and to simultaneously build the capabilities and platforms needed for future scale and consistent performance. ” Stephen A. Carter, Group CEO Growth Acceleration Plan G
Slide 5: Progress with Performance
Progress with Performance • Operating structure o Increased focus on customers and renewals in Business Intelligence yielding benefits • Investment for growth o £70m-£90m growth programme on track • Active Portfolio Management o Disposal of Consumer information businesses and InsuranceIQ in Business
Slide 6: Progress with Performance
Progress with Performance % Group revenue % Group revenue Academic Publishing Global Exhibitions c.32% c.27% • Proven management team enhanced by CTO hire • Experienced industry Executive hired to succeed CEO • Medical Journals integration largely complete • Pursuing targeted international expansion
Slide 7: Gareth Wright, Group Finance Director
GARETH WRIGHT Group Finance Director
Slide 8: Progress with Performance
Progress with Performance Operational Performance GAP Discipline Funding Flexibility Cash Management HALF YEAR RESULTS 28 JULY 2015 8
Slide 9: Summary of financials
Summary of financials • Organic revenue growth: +0.2% or over 2% adjusted for phasing • Reported revenue growth: +8.6% to £618.8m revenue (H1 2014: £569.6m) • Improved adjusted operating profit: +14.2% to £190.4m (H1 2014: £166.7m) • Enhanced adjusted diluted EPS: +8.5% to 21.8p (H1 2014: 20.1p) • S
Slide 10: Divisional overview
Divisional overview Revenue H1 2015 £m H1 2014 £m Actual % Organic % Academic Publishing 195.0 183.6 6.2% 2.5% Business Intelligence 138.8 139.6 -0.6% -3.5%* Global Exhibitions 168.8 122.3 38.0% 6.4% Knowledge & Networking 116.2 124.1 -6.4% -5.5% Group total 618.8 569.6 8.6% 0.2%** Adjusted Operatin
Slide 11: The impact of Exhibition phasing and acquisitions
The impact of Exhibition phasing and acquisitions 2014 2015 2016 H1 H2 H1 H2 H1 H2 Movements Apr 14 Sept 15 May 14 Jul15 Non-Annual 2018 Acquisitions HALF YEAR RESULTS 28 JULY 2015 11
Slide 12: Income statement
Income statement H1 2015 £m H1 2014 £m Revenue 618.8 569.6 Adjusted operating profit 190.4 166.7 Adjusted Operating margin 30.8% 29.3% • GAP investment underway Intangible asset amortisation1 -50.5 -45.8 Other adjusting items -6.4 -8.6 • Tight management of exceptional costs Operating profit 133.5 1
Slide 13: Strong free cash flow
Strong free cash flow £m Increased Adjusted OP + Higher cash conversion + Lower cash tax payments = 116.4 Strong free cash flow 64.7 H1 2014 OP Working Tax Capex Other H1 2015 FCF Capital FCF HALF YEAR RESULTS 28 JULY 2015 13
Slide 14: Net debt movement
Net debt movement H1 2015 £m H1 2014 £m Net debt at 1 January -876.2 -782.6 Free cash flow 116.4 64.7 Dividends -84.1 -75.4 Net acquisition spend -71.0 -15.8 Operating cash flow of discontinued operations -0.3 -2.8 Net repurchase of shares -0.3 - Non-cash items -0.6 -0.5 Foreign exchange 4.4 17.6 Ne
Slide 15: GAP Investment: Reconfirmed financial profile
GAP Investment: Reconfirmed financial profile Projected post-tax return on GAP investment Cash payback % 34.3% ROI: 15-20% ROI: 25-35% • Positive ROI from 16.2% year 3 • Cash payback within four years -3.8% -14.5% 2015 2016 2017 2018 (Year 1) (Year 2) (Year 3) (Year 4) ~70% Investment range (m) £30-
Slide 16: GAP Investment: projects launched in the first-half
GAP Investment: projects launched in the first-half Division Status Project Example Scope Target Benefits 2 Projects • Improved discoverability Academic Delivery Consolidation of • Improved functionality Stage Gate 1 books and journals Publishing Approved platform • Richer user experience upgrade de
Slide 17: Progress with Performance
Progress with Performance Operational Performance GAP Discipline • Positive underlying growth • On budget and on schedule • Focus on returns • Financial profile unchanged Funding Flexibility Cash Management • Net debt / EBITDA within target • Improved cash conversion range • Strong free cash flow gr
Slide 18: Stephen A. Carter, Group CEO
STEPHEN A. CARTER Group CEO
Slide 19: The Knowledge & Information Economy
The Knowledge & Information Economy 69m people 2.1m 262m US tradeshow attendees The number of LinkedIn Number of students globally in 2013 Community Groups in 2013 will double to 262m by 2025 3ZB 40ZB 2.7bn $4.5bn 2012 2020 2.7bn Internet users Globally, rising to half the world Expenditure by US As
Slide 20: GAP Portfolio Management
GAP Portfolio Management Programme of activity to increase focus on priority markets, scale and internationalise 2014 2015 to date BI BI • Transfers • Disposals o Medical Journals AP o Consumer Information Businesses o Policy Advisory Service K&N o InsuranceIQ o Training & Learning business K&N K&N
Slide 21: GAP Acquisition Strategy
GAP Acquisition Strategy Targeted and disciplined approach to acquisitions and integration process Global Exhibitions US based events Property & Construction Health & Nutrition Beauty & Aesthetics Pop Culture FY 2014 US Cosmetic H1 2015 Surgery Show Academic Publishing H1 2015 STM 172 Journals H2 20
Slide 22: 2014-2017 Growth Acceleration Plan Framework
2014-2017 Growth Acceleration Plan Framework Growth Acceleration Plan GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy • 4 Operating Divisions • EMT established • Consumer Info sale • Hanley Wood Exhib. • £70-90m programme • Re
Slide 23: Improved returns for shareholders
2014-2017 GROWTH ACCELERATION PLAN Improved returns for shareholders Consistent organic growth across all Operating Divisions Balanced portfolio positioned for growth and scale Measured Change to Accelerated Change HALF YEAR RESULTS 28 JULY 2015 23
Slide 24: Summary of 2015 interim results
Summary of 2015 interim results • Solid trading performance o Growth in revenue, profit, earnings and cash o Two Divisions in growth, one improving, one repositioned for growth • Good cash performance o Higher cash conversion, strong free cash flow • 2014-2017 Growth Acceleration Plan on schedule an
Slide 25: Informa Group Investor Day 2015
Informa Group Investor Day 2015 Please join Stephen A. Carter, Group CEO and Gareth Wright, Group FD in Washington DC on 17-18 November 2015 for: A Group update a year on from the launch of the Growth Acceleration Plan Presentations from the Group Chief Executive and Group Finance Director Presentat
Slide 26: Appendix
APPENDIX —_ sa} & ro (e) = £
Slide 27: Balance sheet summary
Balance sheet summary H1 2015 £m H1 2014 £m Intangibles and goodwill 2,546.7 2,326.6 Fixed assets 17.1 16.0 Other non-current assets 31.9 40.7 Current assets 306.8 266.0 Deferred income -339.0 -284.3 Other current liabilities -259.7 -230.2 Net debt -911.7 -794.8 Other non-current liabilities -163.3
Slide 28: Operating cash flow
Operating cash flow H1 2015 £m H1 2014 £m Adjusted operating profit from continuing operations 190.4 166.7 Depreciation of PP&E 3.1 3.1 Amortisation 6.2 6.0 TO Share-based payments 1.4 0.7 EBITDA from continuing operations 201.1 176.5 Net capital expenditure -14.2 -7.0 Working capital movement CHANG
Slide 29: Tax
Tax Profits £m Tax £m ETR % Statutory results* 122.0 22.1 18.1% Adjusted for: Restructuring and reorganisation costs 4.4 0.8 Acquisition related costs 0.9 - Intangible asset amortisation 50.5 12.7 Subsequent re-measurement of contingent consideration 1.1 - Loss on disposal of business (0.6) - Adjust
Slide 30: Other adjusting items
Other adjusting items H1 2015 £m H1 2014 £m Amortisation of intangible assets 50.5 45.8 Restructuring and reorganisation costs 4.4 6.8 Acquisition related costs 0.9 0.1 Subsequent re-measurement of contingent consideration 1.1 1.7 Total 56.9 54.4 HALF YEAR RESULTS 28 JULY 2015 30
Slide 31: Currency
Currency Major currencies Average Rates Closing Rates H1 2015 H1 2014 June 2015 June 2014 USD 1.5271 1.6690 1.5728 1.7017 EUR 1.3654 1.2173 1.4062 1.2463 Impact of a 1 cent movement on full year financials USD £m EUR £m Revenue 4.0 0.6 Operating Profit 1.7 0.2 Net Debt 4.8 0.2 HALF YEAR RESULTS 28 J
Slide 32: 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 33: GAP investment governance
GAP investment governance Accountability BI K&N GE AP Global Designing & Support (IT/HR/Fin.) Doing Supporting Shared Specialist Group and the Architecture Review Board Monitoring, Tracking and Reporting PMO Reviewing and Funding Design Authority Steering and Sponsoring Steering Committee Oversight
Slide 34: Academic Publishing Division
Academic Publishing Division Our Academic Publishing Division, operating as the Taylor & Francis Group, is recognised internationally as one of the world’s leading education publishers of specialist academic books and journals available in both print and digital formats, across subject areas within
Slide 35: Academic Publishing – Product Examples
Academic Publishing – Product Examples Books Journals Journal of Physical Education, The Biology of Cancer Recreation & Dance 10,000 units pa >$600,000 revenue pa >2,600 subscriptions pa >$1m revenue pa For third year undergraduate, graduate, and SHAPE America’s (Society of Health and medical school
Slide 36: Business Intelligence Division
Business Intelligence Division In Business Intelligence we offer expert analysis of data and information to deliver unique insights to create competitive advantage. Across five core industry sectors, we help our customers identify new opportunities, understand and mitigate risk and make better decis
Slide 37: Business Intelligence – Product Examples
Business Intelligence – Product Examples Maritime A market-leading research and consulting business focused on converging IT, Specialist business information telecoms and media markets service dedicated to the global TMT maritime community Pharma & Healthcare Continually updated reference of clinica
Slide 38: Business Intelligence – Product Examples
Business Intelligence – Product Examples Finance Agra The leading online global crop protection and agrochemical news and analysis service • #1 provider of fund flow and asset allocation data to financial institutions around the world • Tracking both traditional and alternative funds domiciled globa
Slide 39: Global Exhibitions Division
Global Exhibitions Division The Global Exhibitions Division organises transaction-oriented Exhibitions and trade shows, which provide buyers and sellers across different industries and communities with a powerful platform to meet face to face, build relationships and conduct business. Key Verticals
Slide 40: Global Exhibitions – Product Examples
Global Exhibitions – Product Examples Pop Culture Property & Construction The hottest Sci fi and Comic convention in Dallas > 47,000 attendees >31,000 sqm 600 Retailers >5,000 investors >700 delegates and speakers >280 exhibitors 85% director level or above 60,000 Fans 600,000 sqft $10.8Billion wort
Slide 41: Monaco Yacht Show
Every year in late September, one of the world’s smallest countries by area hosts the largest megayacht event on Earth: the Monaco Yacht Show Connection. Insight. Advantage HALF YEAR RESULTS 28 JULY 2015 41
Slide 42: Knowledge & Networking Division
Knowledge & Networking Division In Knowledge & Networking we nurture, build and connect communities through the exchange of insights and strategic thinking. We create platforms online and through face-to-face events that facilitate learning and networking, helping people build knowledge, work smarte
Slide 43: Knowledge & Networking – Product Examples
Knowledge & Networking – Product Examples TMT Finance The World's Largest & The World's Largest Event for Most Comprehensive Fund Managers & Global IoT Event Distribution Partners • >4,000 attendees • >1,200 senior level attendees • >250 speakers • >270 speakers • IoT Hackathon • >250 Fund Selectors
Slide 44: Contact details
5 Howick Place London SW1P 1WG +44 (0)20 7017 5000 info@informa.com informa.com