Slide 1: Half-Year Results Presentation
2017 HALF-YEAR RESULTS PRESENTATION 25 JULY 2017 WWW.INFORMA.COM
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of the Group. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees o
Slide 3: Operational & Financial Delivery
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE OPERATIONAL & FINANCIAL DELIVERY INTERIM RESULTS PRESENTATION 25 JULY 2017 3
Slide 4: Operational Performance and Financial Delivery
OPERATIONAL PERFORMANCE AND FINANCIAL DELIVERY IMPROVING… Revenue Growth: +3.7% underlying and +41.3% reported GROWING… Adjusted Operating Profit Growth: +1.0% underlying and +41.0% reported HIGHER… Adjusted Diluted EPS Growth: +12.7% to 24.0p (H1 2016: 21.3p*) STRONG… Free Cash Flow: £113.8m (H1 20
Slide 5: Operational Performance and Financial Delivery
OPERATIONAL PERFORMANCE AND FINANCIAL DELIVERY EXPANSION… Global Exhibitions: Benefits of large-scale international brands in attractive verticals RESILIENCE… Academic Publishing: Strength in Journals and steady trading in Upper Level reference-led Books GROWTH… Business Intelligence: Increased focu
Slide 6: Effective Integration of Penton Information Services
EFFECTIVE INTEGRATION OF PENTON INFORMATION SERVICES INTEGRATION PLAN NET OPERATING SYNERGIES Management overlap DISCOVER • Complete Property consolidation Operational overlap On track for DELIVER • Complete £14m Procurement/Commissions net target in 2018 • Integrated reporting Functional duplicatio
Slide 7: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN GAP AMBITION • Aggregate underlying growth of 3%+ GROWTH • Platform for sustainable future growth • All four Divisions in growth going into 2018 • Functional discipline and expertise CAPABILITY • Operational fitness • Capacity and capability for future scale GAP AM
Slide 8: GAP Delivery: Enhanced Capabilities
GAP DELIVERY: ENHANCED CAPABILITIES OPERATIONAL FITNESS Divisional Operating Strengthened Senior M&A Focus Strengthened Finance Structure Management and Experience and Treasury 3-Year Planning Group and Divisional Communication Operating Metrics Discipline Strategy and Culture Strengthened Finance C
Slide 9: GAP Delivery – Improving Growth
GAP DELIVERY – IMPROVING GROWTH REVENUE GROWTH (%)* ADJUSTED EPS (P)* 4.0 25.0 3.7 24.0 3.5 CAGR 9% Average 2.3% 23.0 3.0 21.3 2.5 21.0 20.6 2.5 2.0 19.0 18.5 1.9 2.0 17.3 17.0 1.5 1.2 1.0 15.0 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 GAP DELIVERY 2013 2017 Gro
Slide 10: GAP Delivery – Balance and Breadth
GAP DELIVERY – BALANCE AND BREADTH REVENUE BY DIVISION REVENUE BY GEOGRAPHY REVENUE BY TYPE Academic ROW Scholarly/Reference Subscription Knowledge & Networking Global China Books Exhibitions Middle Other East Marketing Services 2016 2016 2016 UK Pro-Forma Pro-Forma Pro-Forma Attendee Business Intel
Slide 11: Financial Delivery
GARETH WRIGHT GROUP FINANCE DIRECTOR FINANCIAL DELIVERY INTERIM RESULTS PRESENTATION 25 JULY 2017 11
Slide 12: 2017 Half Year Results Summary
2017 HALF YEAR RESULTS SUMMARY +3.7% £113.8m 12.7% Improving Underlying Revenue Strong Free Cash Flow Higher Adjusted Diluted EPS Growth +53.4% to £113.8m (2016 H1: +12.7% to 24.0p +3.7% vs +1.6% in FY 2016 and £74.2m) (2016 H1: 21.3p) +2.5% in H1 2016 +1.0% Growing Adj. Operating Profit +1.0% Und
Slide 13: Effective Integration of Penton Information Services
EFFECTIVE INTEGRATION OF PENTON INFORMATION SERVICES GLOBAL EXHIBITIONS AGRICULTURE HEALTH & NUTRITION AVIATION / WASTE c.60% DELIVER BUSINESS INTELLIGENCE GROUND INDUSTRY & • Deal completion • Systems integration • Further understand • 2016 forecast delivery • Benefits harmonisation c.30% TRANSPORT
Slide 14: GAP Progress and Delivery
GAP PROGRESS AND DELIVERY INCREASED OPERATIONAL FITNESS SIMPLIFIED GROUP & DIVISIONAL OPERATING MODELS INCREASED PORTFOLIO FOCUS GAP PRODUCT AND PLATFORM LAUNCHES IMPROVING REVENUE GROWTH ACQUISITION OPERATING SYNERGIES PROFIT FLOW THROUGH ON TRACK TO DELIVER ON GAP AMBITIONS INTERIM RESULTS PRESENT
Slide 15: Divisional Performance
DIVISIONAL PERFORMANCE H1 2017 H1 2016 Reported Underlying £m £m % % Revenue Global Exhibitions 342.8 192.9 77.7 11.0 Business Intelligence 187.6 134.6 39.4 1.1 Academic Publishing 238.9 214.7 11.3 1.2 Knowledge & Networking 146.1 105.5 38.5 (4.0) Group 915.4 647.7 41.3 3.7 Adjusted Operating Profit
Slide 16: Revenue Growth Mix
REVENUE GROWTH MIX H1 2017 REVENUE GROWTH (%) +12.8% +26.0% CURRENCY +41.3% +3.7 -1.2% % ENHANCING PHASING M&A UNDERLYING INTERIM RESULTS PRESENTATION 25 JULY 2017 16
Slide 17: Growth in Revenue, Adjusted Profit and Earnings
GROWTH IN REVENUE, ADJUSTED PROFIT AND EARNINGS H1 2017 H1 2016 £m £m Growth Revenue 915.4 647.7 • Seasonally strong first half period Adjusted Operating Profit 285.1 202.2 Adjusted Operating Margin 31.1 31.2 Operating Margin • GAP investment Net interest (28.7) (17.4) • Shift in mix Adjusted profit
Slide 18: Strong Free Cash Flow
STRONG FREE CASH FLOW Increased Free Cash Flow • Underlying cash flow strong • Impact of Penton Information Services £113.8m • Continuous reinvestment for growth • Tax credits offset increased US profits • Cash exceptionals £74.2m Expected 2017 Free Cash Flow >£400m CONTINUED STRONG CASH GENERATION
Slide 19: Efficient and Flexible Long-Term Financing
EFFICIENT AND FLEXIBLE LONG-TERM FINANCING NET DEBT BRIDGE (£m) Robust balance sheet • 2.8x gearing at half-year — Seasonal working capital outflows in first-half 1,566.4 — Increased dividend on higher share count 1,485.4 • Within target range by year-end, ex M&A Mix of bank debt and US PP debt • Fu
Slide 20: Increased Dividend Returns
INCREASED DIVIDEND RETURNS FY2017 FY2015 / 2016 FY2013 / 2014 +6% +4% +2% MINIMUM GAP COMMITMENT TO GROWTH IN DIVIDEND PER SHARE INCREASED COMMITMENT TO DIVIDEND GROWTH IN FINAL YEAR OF GAP INTERIM RESULTS PRESENTATION 25 JULY 2017 20
Slide 21: GAP Delivery – Improving Cash and Returns
GAP DELIVERY – IMPROVING CASH AND RETURNS FREE CASHFLOW (£m)* DIVIDEND PER SHARE (P)* 120.0 7.0 113.8 110.0 CAGR 22% CAGR 3% 6.65 101.4 100.0 6.5 89.2 6.26 90.0 6.03 80.0 6.0 5.89 5.89 70.0 64.7 60.0 5.5 52.0 50.0 40.0 5.0 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2013 H1 2014 H1 2015 H1 2016 H1 20
Slide 22: From Half-Year to Full Year Delivery
FROM HALF-YEAR TO FULL YEAR DELIVERY Predictability of subscriptions revenue Second-half seasonally smaller than first-half Fewer major Exhibition Brands in the second- Visibility of forward-booked Exhibitions revenue half Key November period for Knowledge & Attractive margins and strong free cash f
Slide 23: Operational & Financial Delivery
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE OPERATIONAL & FINANCIAL DELIVERY INTERIM RESULTS PRESENTATION 25 JULY 2017 23
Slide 24: Operational and Financial Delivery
OPERATIONAL AND FINANCIAL DELIVERY SIMPLIFIED OPERATING MODEL VERTICALS Major Brands in attractive and growing verticals OPERATIONAL INNOVATION Investment in new products and platform enhancements FITNESS GAP SCALE Targeted international expansion with US focus PORTFOLIO FOCUS TECHNOLOGY Strengthene
Slide 25: Global Exhibitions: Informa's Largest Division
GLOBAL EXHIBITIONS: INFORMA'S LARGEST DIVISION GROWTH TRENDS REVENUE BY REGION • Focus on major Brands in attractive verticals North America • YTD Top 30: c.4% growth in net square metres sold MENA • YTD Top 30: 10%+ growth in attendees 2016PF ROW • Yield improvements: rollout of Customer Value Init
Slide 26: Academic Publishing: Resilience and Strength
ACADEMIC PUBLISHING: RESILIENCE AND STRENGTH GROWTH TRENDS REVENUE BY REGION • Focus on Upper Level specialist content • High renewal rate and strong growth in Journals North America • Operational effectiveness from creation of single, global Books business Central Europe 2016 • Investment in conten
Slide 27: Business Intelligence: Growth Momentum
BUSINESS INTELLIGENCE: GROWTH MOMENTUM GROWTH TRENDS REVENUE BY REGION • High subscription renewals and growing Annualised Contract Values • Momentum in contingent revenues following relaunch of North America Consulting and integration of Marketing Services Central Europe • Strong performance in Agr
Slide 28: Knowledge & Networking: Focus, Simplify & Grow
KNOWLEDGE & NETWORKING: FOCUS, SIMPLIFY & GROW GROWTH TRENDS REVENUE BY REGION • Increased portfolio focus: Germany, Switzerland, Brazil • Focus on end markets: TMT, Life Sciences, Global Finance UK • Develop community Brands North America • Maximise Networking and Partnering opportunities 2016PF Eu
Slide 29: GAP Year Performance Measures
GAP YEAR 4 PERFORMANCE MEASURES FY 2016 FY 2017 Progressive improvement in INFORMA GROUP +1.6% underlying growth Continued expansion and GLOBAL EXHIBITIONS +8.7% growth ACADEMIC PUBLISHING +0.3% Resilient performance BUSINESS INTELLIGENCE +1.1% Improving growth KNOWLEDGE & NETWORKING -4.1% Improving
Slide 30: Post-GAP Financial Framework
POST-GAP FINANCIAL FRAMEWORK 3%+ underlying revenue growth INFORMA GROUP Consistent margins over 30% Continuous re-investment for growth 5%+ underlying revenue growth GLOBAL EXHIBITIONS Market-leading margins Consistent underlying revenue growth ACADEMIC PUBLISHING Strong margins (with currency vari
Slide 31: Post-GAP Operational Framework
POST-GAP OPERATIONAL FRAMEWORK Sustainable Strong Cash Performance Generation Robust Underlying International Growth Scale Predictable and Digital and Data Recurring Revenue Capability B2B Brand and Robust Balance Sheet Marketing Capability INTERIM RESULTS PRESENTATION 25 JULY 2017 31
Slide 32: Appendices
APPENDICES INTERIM RESULTS PRESENTATION 25 JULY 2017 32
Slide 33: Vertical Balance and Breadth
VERTICAL BALANCE AND BREADTH Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate Science, Tech Humanities & Beauty & Aesthetics Pop Culture Transportation & Medical Social Science Anderson Books INTERIM RESULTS PRESENTATION 25 JULY 2017 33
Slide 34: Balance Sheet Summary
BALANCE SHEET SUMMARY H1 2017 H1 2016 £m £m Intangibles and goodwill 4,421.8 2,881.1 Fixed assets 25.9 16.6 Other non-current assets 15.3 17.7 Current assets 481.9 341.5 Deferred income (489.1) (384.3) Other current liabilities (308.7) (264.1) Net debt (1,566.4) (1,054.9) Other non-current liabiliti
Slide 35: Tax Summary
TAX SUMMARY H1 2017 H1 2017 H1 2017 Profit/(loss) Tax ETR £m £m % Reported Profit Before Tax 148.8 30.2 20.3 Adjusted for: Intangible amortisation and impairment 82.2 20.3 Acquisition and integration costs 12.1 2.4 Redundancy and reorganisation costs 2.5 0.7 Vacant property costs 6.1 2.3 (Loss)/prof
Slide 36: Operating Cash Flow Summary
OPERATING CASH FLOW SUMMARY H1 2017 H1 2016 £m £m Adjusted operating profit 285.1 202.2 Depreciation of property and equipment 4.7 3.0 Software and product development amortisation 11.1 6.1 Share-based payments 2.4 1.3 Adjusted share of joint venture and associate results (0.2) (0.1) Adjusted EBITDA
Slide 37: Other Adjusting Items
OTHER ADJUSTING ITEMS H1 2017 H1 2016 £m £m Intangible asset amortisation 79.4 51.2 Impairment 2.8 2.3 Restructuring and reorganisation 8.6 2.6 Acquisition and integration 12.1 6.5 Subsequent re-measurement of contingent consideration - (2.0) Adjusting items in operating profit 102.9 60.6 Loss on di
Slide 38: Currency
CURRENCY Major currencies Average Rates Closing Rates H1 2017 H1 2016 H1 2017 H1 2016 USD 1.26 1.43 1.30 1.35 EUR 1.16 1.29 1.14 1.21 Impact of a 1 cent movement in 2017: USD £m EUR £m Revenue 9.4 0.8 Operating Profit 4.0 0.4 Adjusted Diluted EPS 0.4p - INTERIM RESULTS PRESENTATION 25 JULY 2017 38
Slide 39: 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 Damon Rowan
Slide 40: 5 Howick Place London SW1P 1WG
5 HOWICK PLACE LONDON SW1P 1WG +44 (0) 20 7017 5000 info@informa.com www.informa.com