Slide 1: Informa Interim Results
Informa Global Information Specialists Interim Results 27 July 2010 Peter Rigby Adam Walker 1
Slide 2: Financial Highlights
Financial Highlights Adjusted operating profit growth of 4.2%; 5.6% on an organic basis Adjusted operating profit margin increased to 24.5% (2009 H1: 23.0%) Operating cash flow of £99m – adjusted cash conversion of 65% (2009 H1: 78%) Net debt to EBITDA maintained at 2.7 times Adjusted diluted earnin
Slide 3: Income Statement
Income Statement H1 2010 H1 2009 Growth Organic £m £m % % Revenue 624.0 636.3 -1.9 -0.5 Adjusted operating profit 152.7 146.6 4.2 5.6 Amortisation -61.5 -69.7 Impairment -5.0 - Acquisition costs -0.5 - Reorganisation costs - -15.8 Operating profit 85.7 61.1 Adjusted OP Margin 24.5% 23.0% Interest (n
Slide 4: Divisional Summary
Divisional Summary 2010 2009 Actual Organic Revenue £m £m % % Academic Information 141.5 136.5 3.7 5.0 PCI 178.5 185.6 -3.8 -2.9 Events and Training 304.0 314.2 -3.2 -1.5 Total 624.0 636.3 -1.9 -0.5 Actual Organic Adjusted OP H1 % % Academic Information 45.5 42.9 6.1 6.9 PCI 51.6 53.8 -4.1 -3.6 Even
Slide 5: Operating Cash Flow
Operating Cash Flow H1 2010 H1 2009 £m £m Adjusted operating profit 152.7 146.6 Depreciation 3.8 8.0 Software amortisation 7.3 5.0 Share based payments 0.9 0.1 EBITDA 164.7 159.7 Net capital expenditure -11.9 -11.1 Working capital movement -54.1 -34.0 Operating cash flow 98.7 114.6 5
Slide 6: Net Funds Flow
Net Funds Flow H1 2010 H1 2009 £m £m Operating cash flow 98.7 114.6 Restructuring and reorganisation cash flow -6.8 -13.1 Net interest -18.6 -23.4 Taxation -25.9 -9.1 Free cash flow 47.4 69.0 Acquisitions less disposals -17.0 -25.3 Dividends -48.0 -17.6 Net issue of shares 4.1 243.1 Net funds flow -
Slide 7: Earnings Visibility
Earnings Visibility Booked & deferred income represents 70% of full year expected revenues Academic journal revenues locked in for 2010 Robust PCI renewal rates Increasing high value enterprise wide subscriptions Re-sells on exhibitions and large scale events remain strong Focus on growing larger ev
Slide 8: Strengths of Informa
Strengths of Informa Well balanced portfolio of products with „must have‟ content Resilient earnings stream - Subscriptions 67% of publishing revenues Aggressive digital strategy and re-use of primary data and analysis Increased digital delivery to 75% of total publishing revenues Highly geared, mar
Slide 9: Academic Information
Academic Information Revenue growth from digital delivery of 7% Strong first half for books • 27% growth of POD titles available in last 6 months • 36% increase in availability of e-books • Over 1,300 books launched • Strong back catalogue sales Good performance for Journals • 21 new launches & 44 s
Slide 10: Professional and Commercial Information
Professional and Commercial Information IBI performing well Improving operating margins in IBI Consolidation of marginal product in 2009 Informa Healthcare strong Advertising exposure decreasing - to 5% of PCI revenue Datamonitor flat - managing late cycle effects well % of Revenue Financial subscri
Slide 11: Events
Events Organic adjusted Operating Profit up 15%, margin up to 18% Proactive reduction in volumes – 542 less events H1 2010 v‟s H1 2009 Significant successes in H1 – Arab Health, IPEX, Finance, Telecoms Rebookings for Exhibitions up 9% into 2011 19% increase in delegate numbers for largest financial
Slide 12: Organic Growth Activity
Organic Growth Activity Continued drive on Geo-cloning events Over1,300 new books 23 new journals for 2011 £25m for 12 small acquisitions funded from operations as bolt-ons • £3m into Academic Information • £11m into PCI • £11m into new exhibitions Growth in emerging markets 12
Slide 13: “Bolt-on” Strategy – Introducing a new Journal
“Bolt-on” Strategy – Introducing a new Journal Journal introduced into Informa in 2008 Increase in number of issues from 12 to 14. 16 planned for 2011 Total retro-digitisation to 1980. Increased e-article downloads 2,000 to 39,000 Use of Informaworld.com and e-marketing - functionality and visibilit
Slide 14: “Bolt-on” Strategy – Full Service Offerings
“Bolt-on” Strategy – Full Service Offerings A series of 3 events introduced into Informa in April 2010 Aggressive strategy for geo-cloning of the event Launch of monthly peer reviewed journal Integrated marketing approach between journal and events Integration of associated publications into Informa
Slide 15: Outlook for Full Year 2010
Outlook for Full Year 2010 Made a good start to the year Global economic conditions remain uneven Well positioned portfolio mix Will have a good year – in line with expectations 15
Slide 16: Appendices
@ Appendices informa
Slide 17: Balance Sheet
Balance Sheet 30 June 30 June 2010 2009 £m £m Intangibles and Goodwill 2,842.9 2,805.4 Fixed Assets 18.1 25.4 Deferred Tax Assets 31.9 37.1 Current Assets 273.2 272.3 Net Current Liabilities -619.1 -580.7 Debt -905.7 -984.5 Other Liabilities -256.9 -346.3 1,384.4 1,228.7 17
Slide 18: Tax analysis
Tax analysis Tax Effective PBT Charge tax rate £m £m % PBT as reported 66.4 18.1 27.3 Adjusted for: Acquisition related costs 0.5 - Intangible asset amortisation 61.5 15.3 Impairment 5.0 - 133.4 33.4 25.0 18
Slide 19: Sterling Exchange rates
Sterling Exchange rates USD EURO Average H1 2009 1.48 1.11 Average H1 2010 1.53 1.15 Closing 30 June 2009 1.65 1.17 Closing 30 June 2010 1.50 1.22 19
Slide 20: Divisional analysis – AI & PCI
Divisional analysis – AI & PCI Academic Information H1 2010 H1 2009 Growth Organic £m £m % % Revenue 141.5 136.5 3.7 5.0 Adjusted Operating Profit 45.5 42.9 6.1 6.9 Adjusted Operating Margin 32.2% 31.4% Professional & Commercial H1 2010 H1 2009 Growth Organic Information £m £m % % Revenue 178.5 185.
Slide 21: Divisional analysis – Events
Divisional analysis – Events Events H1 2010 H1 2009 Growth Organic £m £m % % Revenue Europe 134.5 133.7 0.6 0.9 US 94.7 107.9 -12.2 -9.5 Rest of World 74.8 72.6 3.0 5.3 Events 304.0 314.2 -3.2 -1.5 Adjusted Operating Profit Europe 25.7 23.0 11.7 11.8 US 9.9 10.9 -9.2 -8.6 Rest of World 20.0 16.0 25.
Slide 22: Revenue by type
Revenue by type rn @ Subscriptions @ Delegates ll Copy sales @ Exhibition ll Sponsorship ™ RG i Advertising informa
Slide 23: Revenue by location of customer
Revenue by location of customer 23
Slide 24: Deferred Income
Deferred Income H1 2010 H1 2009 Growth Organic £m £m % % Events 77.1 87.4 -11.8 -15.8 Publishing 178.1 172.9 3.0 5.0 Total Deferred Revenue 255.2 260.3 -2.0 -2.3 IPEX - -7.8 Deferred Income Proforma 255.2 252.5 1.1 0.8 24