Slide 1: 2018 Full Year Results
2018 Full Year Results Combination & Creation 7 March 2019 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: Combination & Creation
Stephen A. Carter Group Chief Executive 2018 Combination & Creation 07 March 2019 2018 Full Year Results 3
Slide 4: The Informa Journey 2013-2018
The Informa Journey 2013-2018 2013 2018 Global Exhibitions Distributed portfolio Industry specialisation DEPTH UK, Europe, MEA Business Intelligence International reach GROWTH Short-term targets Investment for growth Knowledge & Networking FOCUS Product orientated Customer orientated Academic Publis
Slide 5: The Informa Journey 2013-2018
The Informa Journey 2013-2018 Revenue by region Revenue by region North America North America Asia Asia UK UK 2013 Continental Europe 2018PF Continental Europe £1,130m Middle East £2,370m* Middle East Rest of World Rest of World Revenue by type Revenue by type Subscription Subscription Exhibitor Exh
Slide 6: The Informa Journey 2013-2018
The Informa Journey 2013-2018 Underlying revenue growth (%) Adjusted earnings per share (p) 4.0 3.7 50.0 49.2 3.4 +300bps +7% CAGR 46.0 3.0 45.0 42.1 39.5 2.0 1.6 40.0 37.8 1.0 1.0 0.7 35.0 0.0 30.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Free cash flow (£m) Dividends per share (p) 550 22.
Slide 7: 2018: Combination & Creation
2018: Combination & Creation Growth Further improvement in underlying revenue growth +3.7% Performance Underlying profit growth 2.3% and consistent Group margin Operating cash conversion 91% Strong Free Cash Flow >£500m or >£600m pro-forma for a full year of UBM Addition of Hanley Wood, Penton and U
Slide 8: 2018: Improving Financial Performance
2018: Improving Financial Performance Underlying Revenue Growth Global Knowledge & UBM Business Academic Exhibitions Networking (Stub period) Intelligence Publishing +6.7% +2.3% +3.7% +2.6% +2.2% Informa Group Growth Underlying Underlying Earnings Free Dividends Revenue Profit Per Share Cash Flow Pe
Slide 9: AIP Accelerated Integration Plan: 12 month programme
AIP Accelerated Integration Plan: 12 month programme Phase 1 Phase 2 Phase 3 Phase 4 Discovery Combinatio Ambition Completion & Validation n & Creation June – August 2018 August – November 2018 Nov 2018 – March 2019 April – July 2019 • Learn more about each • Finalise new operating • Start to operat
Slide 10: AIP 12 Month Programme
AIP 12 Month Programme Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Progressive Cost & Leadership Fashion Brand Model & Portfolio Revenue & Talent GAP Value Verticals Management Synergies • Events-led and • Best of both • Accelerate shift to • Cost synergies • 3-year plan to
Slide 11: AIP Combining Businesses & Brands
AIP Combining Businesses & Brands New Informa Group Global Global Informa Informa Markets Exhibitions Exhibitions Markets Knowledge Knowledge & & Informa Informa Connect Networking Networking Connect Informa Informa Tech UBM Tech Portfolio Business Business Informa Intelligence Intelligence Intellig
Slide 12: AIP New Operating Structure and Brands
AIP New Operating Structure and Brands 2018 Annual Revenue Global Knowledge & UBM Business Academic Exhibitions Networking Portfolio Intelligence Publishing £575m £260m £990m £385m £530m New Informa Group* Informa Markets Informa Connect Informa Tech Informa Intelligence Taylor & Francis £1,360m £21
Slide 13: Financial Delivery
Gareth Wright Group Finance Director 2018 Financial Delivery 07 March 2019 2018 Full Year Results 13
Slide 14: 2018 Full Year Results
2018 Full Year Results 34.9% +34.4% 7.1% Increased Adjusted Higher Reported Revenue Operating Profit Enhanced Dividend Per Share +34.9% to £2,369.5m +34.4% to £732.1m (2017: £544.9m) (2017: £1,756.8m) up 7.1% to 21.9p (2017: 20.45p) 7.0% Growth in Adjusted Diluted EPS +3.7% +7.0% to 49.2p (201
Slide 15: Growth In Revenue, Adjusted Profit And Earnings
Growth In Revenue, Adjusted Profit And Earnings 2018 2017 £m £m Improving Growth Revenue 2,369.5 1,756.8 • Higher underlying growth • Reported growth impacted by currency Adjusted Operating Profit 732.1 544.9 Adjusted Operating Margin 30.9 31.0 Operating margin • Currency impact Net finance costs (8
Slide 16: Improving Underlying Revenue Growth & Combination
Improving Underlying Revenue Growth & Combination 2018 Revenue Growth (%) Biennial Phasing Even Odd (2018) (2019) Revenue c.£75m c.£95m Adj OP Margin c.30% c.40% +35% Reported Growth 07 March 2019 2018 Full Year Results 16
Slide 17: Improving Underlying Revenue Growth & Combination
Improving Underlying Revenue Growth & Combination 2018 2017 Actual Underlying £m £m % % Revenue Global Exhibitions Global Exhibitions 575.8 560.4 2.7 6.7 • Continued strong growth, ahead Academic Publishing 533.2 530.0 0.6 2.2 of the Exhibitions market Business Intelligence 385.6 383.4 0.6 2.6 Acade
Slide 18: Spotlight on…
Spotlight on… 1. Strong Growth In Free Cash Flow 2. Robust Balance Sheet Underpins Long-term Financing 3. Robust and Resilient Margins 4. Currency Mix For Enlarged Group 5. Minimal Impact from IFRS 16 Lease Accounting 07 March 2019 2018 Full Year Results 18
Slide 19: Strong Growth In Free Cash Flow
1. Strong Growth In Free Cash Flow Pro-forma Increased Free Cash Flow (£m) 600+ • Strong profit growth • 91% operating profit conversion • Consistent investment for growth • Higher Depreciation post GAP • Pro-forma FCF of >£600m including a full year of UBM +26% 07 March 2019 2018 Full Year Result
Slide 20: Robust Balance Sheet Underpins Long-term Financing
2. Robust Balance Sheet Underpins Long-term Financing Efficient balance sheet Uses of cash flow (£m) • 2.9x covenant gearing at end December • Balanced mix of funding sources Flexible financing • RCF renegotiated Feb 2019 • Increased facility size to £900m • Expanded syndicate reflecting geographic
Slide 21: Robust and Resilient Margins
3. Robust and Resilient Margins Growth, Mix & 2017 Adj. OP FX Portfolio Investment 2018 Adj. OP Margin impact impact impact Margin % % % % % Global Exhibitions 35.9 -0.7 0.0 -0.4 34.8 Academic Publishing 39.2 -0.8 -0.1 -1.1 37.2 Business Intelligence 23.9 - +0.4 -0.7 23.6 Knowledge & Networking 15.5
Slide 22: Currency Mix For Enlarged Group
4. Currency Mix For Enlarged Group Revenue by currency Operating profit by currency 2018PF 2018PF USD pegged 56% 2018 pro-forma: a 1 cent move in USD: USD pegged 70% CNY and HKD 11% • £13.2m on revenue CNY and HKD 14% EUR 6% EUR 13% • £5.0m on OP GBP 17% Other (inc. GBP at -6%) 3% • 0.4p on EPS Othe
Slide 23: Minimal Impact from IFRS 16 Lease Accounting
5. Minimal Impact from IFRS 16 Lease Accounting Expected impact of IFRS 16 on 2019 Financials Balance Sheet: Increase in Assets +£300m to +£320m Increase in Liabilities +£300m to +£320m Profit & Loss Account: Increase in Adjusted Operating Profit +£4m to +£6m Increase in Adjusted EBITDA +£35m to +£4
Slide 24: AIP Operating Synergies
AIP Operating Synergies Corporate Management & Support Procurement Synergy Delivery On Track 2019 2020 2021 in-year run-rate run-rate £50m £60m £75m * One-off cost to achieve target of £100m Central Savings Benefit All Divisions Informa Markets Informa Connect Informa Tech Informa Intelligence Taylo
Slide 25: Capital Allocation Framework For Enlarged Group
Capital Allocation Framework For Enlarged Group • Consistent reinvestment for growth Organic Growth • Capex at 3-4% of revenue (c.£80-110m) • Progressive dividends, growing broadly in line Adj. Free Shareholder Returns with earnings (c.£300m) Operating Cash Profit Flow £900m+ £600m+ • Target leverag
Slide 26: Visibility and Predictability
Visibility and Predictability Forward visibility Attractive and resilient margins 65%+ 30%+ Exhibitions, Subs & Sponsors Free Cash Flow Robust Balance Sheet £600m+ 2.9x proforma annually at end 2018 Consistent investment for growth Progressive dividends 3-4% +7.1% of revenue Growing in line with ear
Slide 27: Performance & Growth
Stephen A. Carter Group Chief Executive 2019 Performance & Growth 07 March 2019 2018 Full Year Results 27
Slide 28: The Knowledge & Information Economy
The Knowledge & Information Economy Global Growth Specialisation Brexit Uncertainty Technology Innovation Trade Relations Global Connectivity Fx Volatility Information Demand Geo-political Unrest Data In Everything 07 March 2019 2018 Full Year Results 28
Slide 29: Informa Group: Strengths & Opportunities
Informa Group: Strengths & Opportunities Informa Markets Informa Connect Informa Tech Informa Intelligence Taylor & Francis £1,360m £215m £225m £360m £530m • Specialist B2B brands • Specialist B2B brands • Specialist B2B brands • Specialist B2B brands • Publishing brands Strengths • International re
Slide 30: Industry Specialisation: Informa Markets
Industry Specialisation: Informa Markets Key Verticals Revenue Key Brands Healthcare & c£200m Pharmaceuticals Infrastructure, Construction c£140m & Real Estate Fashion & Apparel c£130m Health & Nutrition c£120m Manufacturing, Machinery c£100m & Equipment Hospitality, Food & Beverage c£90m Maritime,
Slide 31: Industry Specialisation: Informa Markets
Industry Specialisation: Informa Markets Fragmented High Value Internationa Structural Vertical Selection of Top 30 Brands Age Market Product l Market Growth Healthcare & Pharmaceuticals CPhI Worldwide 30+ Healthcare & Pharmaceuticals Arab Health 40+ Infrastructure, Const
Slide 32: AIP Fashion GAP on Track
AIP Fashion GAP on Track Appointment of new Managing Director (Mark Temple-Smith) and senior Leadership management team, including CCO, CMO and Strategy Director Focus on scheduling to benefit customers. Launch of One-Magic campaign Venues & Scheduling and return to single venue in Las Vegas from Au
Slide 33: AIP Twenty Questions on Fashion
AIP Twenty Questions on Fashion 1 Structural or cyclical? 11 Is £10m investment enough? How is it being spent? 2 What did Fashion decline in 2018? 12 Are you changing the management structure? 3 What do you expect Fashion to do in 2019? 13 How poor is morale and how high is staff turnover? 4 Which s
Slide 34: AIP Twenty Questions on Fashion
AIP Twenty Questions on Fashion 1 Structural or cyclical? 11 Is £10m investment enough? How is it being spent? 2 What did Fashion decline in 2018? 12 Are you changing the management structure? 3 What do you expect Fashion to do in 2019? 13 How poor is morale and how high is staff turnover? 4 Which s
Slide 35: Informa Markets: Industry Specialisation
Informa Markets: Industry Specialisation Health & Nutrition Infrastructure, Construction & Real Estate • B2B brands across the supply chain from ingredients to • B2B brands across the supply chain from materials to finished goods surfaces, finishing, construction, housing and real estate • Internati
Slide 36: Informa Tech: Dedicated Industry Specialisation
Informa Tech: Dedicated Industry Specialisation A new market-based business Revenue by region • Portfolio of more than 100 leading B2B Tech brands • Data, Research, Media, Training and Events • Organised and operating around customers in the Europe Technology industry North America • Comprised of UB
Slide 37: AIP Building Revenue Strength
AIP Building Revenue Strength 6-Step Revenue Growth Plan Underway Share best practice. Top 50 events review underway Non-endemic sponsorship team established and 90-day Customer Informa Advance priority plan launched Value Initiatives established. Aligning plans and models, Content, data and inclu
Slide 38: AIP Progressive Portfolio Management
AIP Progressive Portfolio Management Increase the focus on core verticals, where we have strong brands and Ambition market positions, and higher quality sources of revenue Sale of Life Sciences Media Brands Portfolio for $100m+, reducing Progress exposure to advertising and media Review Ongoing revi
Slide 39: 2019 Growth Outlook
2019 Growth Outlook 2018 Informa 2018 UBM Stub 2018 Informa 2018 UBM Full 2018 New ex-UBM Underlying Underlying Year Underlying Informa Underlying Revenue Revenue Revenue Underlying Revenue Growth Growth Growth Growth Revenue Growth 3.7% 3.7% 3.7% 2.8% 3.4% 2019 Performance & Growth Informa Informa
Slide 40: 2019 Informa Capital Markets Day
2019 Informa Capital Markets Day 07 March 2019 2018 Full Year Results 40
Slide 41: Appendices
Appendices 07 March 2019 2018 Full Year Results 41
Slide 42: AIP New Operating Structure
AIP New Operating Structure 12 Month Pro-Forma Financials 2018 2017 Reported Informa Markets (ex Life Sciences Media Brands Portfolio) £m £m % Revenue • Addition of UBM portfolio • 2019 target of 4.5%+ ULG Informa Markets 1,356.4 1,349.9 0.5 Informa Connect 214.9 236.6 (9.2) Informa Intelligence Inf
Slide 43: Informa Markets
Informa Markets Key Brands Revenue by region UK Continental Europe North America 2018PF Asia Middle East Rest of World Revenue by type Revenue by vertical Healthcare & Pharma Infrastructure, Construction & Building Fashion & Apparel Health & Nutrition Exhibitor Manufacturing, Machinery & Equipment M
Slide 44: Informa Connect
Informa Connect Key Brands Revenue by region UK Continental Europe North America 2018PF Asia Middle East Rest of World Revenue by type Revenue by vertical Healthcare & Pharmaceutical Exhibitor Finance Marketing Services Industrial 2018PF Sponsorship 2018PF Tax Law & Accounting Attendee Energy & Util
Slide 45: Informa Tech
Informa Tech Key Brands Revenue by region UK Continental Europe North America 2018PF Asia Middle East Rest of World Revenue by type Revenue by tech sub-vertical Enterprise IT Security Subscription Service Provider Marketing Services Gaming, Media & 2018PF Sponsorship & Exhibitor 2018PF Entertainment
Slide 46: Informa Intelligence
Informa Intelligence Key Brands Revenue by region UK Continental Europe North America 2018PF Asia Middle East Rest of World Revenue by type Revenue by vertical Finance Subscription Pharma 2018PF Marketing Services 2018PF Transportation Other Industry & Infrastructure Agribusiness SPECIALIST B2B DATA
Slide 47: Taylor & Francis
Taylor & Francis Key Brands Revenue by region UK Continental Europe North America 2018PF Asia Middle East Rest of World Revenue by type Revenue by vertical Subscription Humanities & Social Science 2018PF Copy Sale 2018PF Science, Technical & Medical RESILIENT GROWTH & UNIQUE CONTENT 07 March 2019 20
Slide 48: Informa Markets: Biennial Impact
Informa Markets: Biennial Impact H1 H2 FY Key Biennial Brands Even years (2018) Revenue c.65% c.35% c.£75m Food Hotel Asia, Health Ingredients Europe, Adj Operating Margin <30% >30% c.30% International Powder Bulk, Offshore South East Asia Odd years (2019) Revenue c.40% c.60% c.£95m Food Ingredients
Slide 49: Tax Summary
Tax Summary 2018 Tax ETR £m £m % Reported Profit Before Tax 282.1 (60.5) 21.4 Adjusted for: Amortisation and impairment 253.4 (42.2) Acquisition and integration costs 88.9 (9.6) Restructure and reorganisation costs 13.1 (2.9) Re-measurement of contingent consideration (0.1) - UAE VAT charge 9.1 - GM
Slide 50: Operating Cash Flow Summary
Operating Cash Flow Summary 2018 2017 £m £m Adjusted operating profit 732.1 544.9 Depreciation of property and equipment 13.1 9.2 Software and product development amortisation 42.5 24.8 Share-based payments 8.1 5.4 Pension curtailment gain (0.8) - Adjusted share of joint venture and associate result
Slide 51: Other Adjusting Items
Other Adjusting Items 2018 2017 £m £m Intangible asset amortisation and impairment 253.4 163.4 Acquisition and integration costs 88.9 24.0 Restructure and reorganisation costs 13.1 12.9 Remeasure of contingent consideration (0.1) (0.1) UAE VAT charge 9.1 - GMP equalisation charge 4.5 - Adjusting ite
Slide 52: Currency Sensitivity
Currency Sensitivity Major Currencies Average Rates Closing Rates 2018 2017 2018 2017 USD 1.33 1.29 1.27 1.35 On a proforma basis (including a full year of UBM), the impact of a 1 cent movement in the USD in 2018: Revenue £13m Adjusted Operating Profit £5m Adjusted Diluted Earnings Per Share 0.4p 07
Slide 53: Balance Sheet Summary
Balance Sheet Summary 2018 2017 £m £m Intangibles and goodwill 10,119 4,310 Fixed assets 70 32 Other non-current assets 57 14 Current assets (excluding cash) 549 406 Deferred income (701) (463) Other current liabilities (excluding debt) (629) (352) Net debt (2,682) (1,373) Other non-current liabilit
Slide 54: 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 55: New Informa Brands
New Informa Brands See more at https://informa.webdamdb.com/bp/#/pages/45415 07 March 2019 2018 Full Year Results 55
Slide 56: Thank you
Thank you www.informa.com