Slide 1: Resilience and Growth: 2011 Full Year Results
Resilience and Growth 2011 Full Year Results Peter Rigby Chief Executive Adam Walker Finance Director 23 February 2012 1
Slide 2: Introduction
Introduction Peter Rigby 2
Slide 3: Digital Media Business for the 21st Century
Digital Media Business for the 21st Century Proprietary niche publisher Innovative and nimble Resilient visible earnings Geographically well spread Financially strong 3
Slide 4: Informa Business Strategy
Informa Business Strategy High Quality Digital Subscriptions Excellence Geographic Resilient Expansion Events 4
Slide 5: Executing on Strategy
Executing on Strategy 67% of publishing revenues from subscriptions 74% of publishing revenues fully digitised 22% increase in number of large events Emerging market growth - now 14% of revenue Datamonitor integration into IBI Successful launch of new digital platforms within AI and PCI Acquisitions
Slide 6: Financial Summary
Financial Summary Adam Walker 6
Slide 7: Financial Highlights
Financial Highlights Organic revenue growth of 3.9% (ex IPEX) Adjusted organic operating profit growth of 7.9% (ex IPEX) Adjusted operating profit margin increased to 26.4% Free cash flow £203m Net debt to EBITDA 2.1x Adjusted diluted EPS up 8.6% to 37.8p Final dividend increased by 24% to 11.8p – t
Slide 8: Income Statement
Income Statement 2011 2010 £m £m Revenue 1,275.3 1,226.5 Adjusted operating profit 336.2 313.2 Amortisation -137.9 -133.8 Other adjusting items -68.0 -15.4 Operating profit 130.3 164.0 Net interest -41.8 -39.0 Profit on disposal 0.1 Tax -14.3 -26.1 Profit for the year 74.3 98.9 Adjusted EPS (diluted
Slide 9: Divisional Summary
Divisional Summary 2011 2010 Actual Organic ex Ipex Revenue £m £m % % Academic Information 323.6 310.2 4.3 6.1 PCI 370.5 364.9 1.5 2.6 Events and Training 581.2 551.4 5.4 3.6 Total 1,275.3 1,226.5 4.0 3.9 Adjusted Operating Profit Academic Information 116.2 109.3 6.3 8.3 PCI 114.0 110.4 3.3 4.5 Even
Slide 10: Operating Cash Flow
Operating Cash Flow 2011 2010 £m £m Adjusted operating profit 336.2 313.2 Depreciation and software amortisation 19.8 24.0 Share based payments 3.0 2.1 EBITDA 359.0 339.3 Net capital expenditure -23.9 -27.2 Working capital movement 1 -23.9 7.7 Operating cash flow 311.2 319.8 Adjusted cash conversion
Slide 11: Net Funds Flow
Net Funds Flow 2011 2010 £m £m Operating cash flow 311.2 319.8 Restructuring and reorganisation -19.3 -14.1 Net interest -44.5 -36.8 Taxation -44.0 -37.5 Free cash flow 203.4 231.4 Acquisitions less disposals -112.9 -53.3 Dividends -87.3 -75.0 Net issue of shares 0.3 4.6 Net funds flow 3.5 107.7 Ope
Slide 12: Financing Costs
Financing Costs April 2011 – new £625m 5 year facility Covenants in line with US PP notes US PP – effective rate 4.3% Fixed rate expiry – 2011 and 2012 Estimated cost of debt in 2012 – 4.1% 12
Slide 13: Cost/Benefit Analysis of DM/IBI Integration
Cost/Benefit Analysis of DM/IBI Integration Integration of back office function into shared services centre Integration of front office sales function Cost incurred in 2011 £10m Cost savings in 2011 £4m Annualised savings run rate £12m 13
Slide 14: Acquisition Strategy
Acquisition Strategy Adherence to strict financial criteria Publishing – subscriptions, digital, data, key verticals Events – exhibitions, Emerging Markets BTS / Ibratexpo ROI 2010 acquisitions – 12.5% 14
Slide 15: Currency
Currency US dollar average rate weakened by 6c in 2011 Adjusted OP annual impact £8.4m (2.7% growth) Small benefit of Euro strengthening Only 3.5% of Group revenues from PIGS 15
Slide 16: From 2008 to 2011
From 2008 to 2011 2008 2011 Revenue 1.28bn 1.28bn Adjusted operating profit margin 23.9% 26.4% +10% Net debt 1.35bn 784m -42% Net debt / EBITDA 3.8x 2.1x Resilient revenues 1 62% 70% Adjusted Tax rate 26.1% 23.4% -10% Dividend per share 10.0p 16.8p +68% ROCE 8.1% 9.0% 1 Subscriptions, copy sales & l
Slide 17: Financial Summary
Financial Summary Strong set of financial results Growth projected for 2012 well above market average Deferred and booked revenue at 31/1/12 – 32% Renewal rates / forward bookings DM cost savings / interest swaps Dividend increase of 20% 17
Slide 18: Resilience and Growth
Resilience and Growth Peter Rigby 18
Slide 19: Strategic Drivers
Strategic Drivers High Quality Digital Subscriptions Excellence Geographic Resilient Expansion Events 19
Slide 20: High Quality Subscription Income
High Quality Subscription Income Subscriptions now 36% of all revenue (2008: 30%) High renewal rates across PCI and AI Decreasing reliance on advertising Removal of marginal product 20
Slide 21: Publishing strength PCI
Publishing strength PCI Focus on rich, highly niche, proprietary information Integration into corporate workflow Direct and interactive customer communications Successful DM integration Excellent team driving innovation 21
Slide 22: In depth, valuable data
In depth, valuable data Continually developing niche datasets New manufacturing plant data – production capacity, capex, feed stock.... Market shares, capacity distribution, regional competitive intelligence Commercially relevant Costa Concordia incident Tracking of ship showing historic routes Exte
Slide 23: Publishing strength AI
Publishing strength AI Over 1,600 subscription journals & 80,000 books All journals digital and over 38,000 ebooks available 5.8m printed books sold in 2011 Quality of content & delivery core to success High visibility, payment in advance on journals Strong portfolio of sector leading of brands 23
Slide 24: Academic highlights
Academic highlights Growth in a challenging market Launch of Taylor & Francis online – digital delivery platform Large e-content sales into Russia, Asia & Middle East Archive sales of journal content remains strong Architectural Press & Earthscan successfully integrated P.O.D. further reduces stock
Slide 25: Digital Excellence
Digital Excellence 74% of publishing revenue digital Successful launch of T&F Online PCI platform consolidation Continued ebook growth Digitisation enhances utility 25
Slide 26: Resilient Events
Resilient Events Larger events grown organically and through acquisitions Increased resilience Increased visibility Number of events now 7,500 (2008: 11,000) Larger events 38% of revenue at high margin 47 new large events in 2011 19 organic + 28 acquired 26
Slide 27: Large Events Organic Growth
Large Events Organic Growth Continuing geo-cloning activity Accelerated through acquisitions 20% of larger event volume now from geo-cloning 27
Slide 28: Geographic Expansion
Geographic Expansion Emerging Market revenues 14% of total (2010: 12%) Events revenue now 20% EM - organic & acquisition Informa infrastructure enables low investment costs Brazil & Far East developments 28
Slide 29: Summary
Summary High quality products in strong niche markets 2012 underpinned by subscriptions & large events Academic journal renewal successful PCI integration to release cost synergies Events forward bookings robust Trading inline with expectations 29
Slide 30: Appendices
Appendices 30
Slide 31: Balance Sheet
Balance Sheet 2011 2010 £’m £’m Intangibles and Goodwill 2,734.6 2,800.7 Fixed Assets 19.7 19.0 Other Non-Current Assets 1.3 1.2 Current Assets 295.1 271.7 Other Current Liabilities -690.2 -684.6 Net Debt -784.0 -779.1 Other Non-Current Liabilities -196.1 -228.0 1,380.4 1,400.9 31
Slide 32: Academic Information
Academic Information 2011 2010 Actual Organic £m £m % % Revenue 323.6 310.2 4.3% 6.1% Adjusted operating profit 116.2 109.3 6.3% 8.3% Adjusted operating margin 35.9% 35.2% 32
Slide 33: Professional and Commercial Information
Professional and Commercial Information 2011 2010 Actual Organic £m £m % % Revenue 370.5 364.9 1.5% 2.6% Adjusted operating profit 114.0 110.4 3.3% 4.5% Adjusted operating margin 30.8% 30.3% 33
Slide 34: Events and Training
Events and Training 2011 2010 Actual Organic £m £m % % Revenue 581.2 551.4 5.4% 0.4% Adjusted operating profit 106.0 93.5 13.4% 4.2% Adjusted operating margin 18.2% 17.0% 34
Slide 35: Operating adjusting items
Operating adjusting items 2011 2010 £m £m Restructuring 15.2 8.3 Impairment 54.3 5.0 Acquisition costs 1.4 1.3 Re-measurement of contingent consideration -2.9 0.8 Intangible amortisation 137.9 133.8 Total 205.9 149.2 35
Slide 36: Tax
Tax Tax Effective PBT Charge tax rate £m £m % Tax on statutory results 88.6 14.3 16.1 Adjusted for: Restructuring costs 15.2 4.4 Intangible asset amortisation 137.9 35.7 Impairment 54.3 3.1 Excess interest on early repayment of syndicated loans 1.5 0.4 Deferred tax credit arising from UK corporation
Slide 37: Deferred Income
Deferred Income Constant 2011 2010 Actual Currency £m £m % % Publishing 210.4 207.3 1% 2% Events 116.6 102.5 14% 15% Total 327.0 309.8 6% 6% 37
Slide 38: Currency
Currency Average Rates Closing Rates 2011 2010 2011 2010 USD 1.6047 1.5447 1.5439 1.5472 EUR 1.1461 1.1676 1.1934 1.1586 Movement of 1 cent on the full year USD EUR £m £m Revenue 3.6 1.3 Operating profit 1.4 0.5 Net debt 3.3 0.5 38
Slide 39: Return on Investment
Return on Investment 2010 acquisitions – 1st year ROI 12.5% 2009 acquisitions – 1st year ROI 18.9% IIR acquired in 2005 – current ROI 14.3% Datamonitor acquired in 2007 – current ROI 8.4% 2011 2010 2009 2008 Group ROCE 9.0% 8.8% 8.8% 8.1% ROI : calculated using total consideration (paid and accrued)