Slide 1: 2019 Full Year Results: Continued Growth & Delivery
2019 Full Year Results Continued Growth & Delivery March 2020 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: The Knowledge & Information Economy
The Knowledge & Information Economy Face-to-Face 500m tweets sent every day Data delivery 95m Webinars 294bn emails sent daily, Source: Twitter photos and videos are shared daily on Instagram 463EB Source: Instagram Business data created every day by 2025 rising to 306bn by 2020 and 320bn by 2021… w
Slide 4: The Informa Group in 2020
The Informa Group in 2020 1 One Company, common culture, strong market-facing Brands 2 Strong Operating Performance in 2019 (Cash, Revenue, Earnings) 3 Market Specialisation and Operational Fitness capability combining well 4 Subscription and related businesses trading to plan (c35% Group Revenue) 5
Slide 5: Continued Growth & Delivery in 2019
Continued Growth & Delivery in 2019 Strong revenue growth: +22% reported and +3.5% underlying Improved Adjusted Operating Profit growth: +28% reported and +6.5% underlying Increased Adjusted Diluted Earnings Per Share: +4.3% or +16.1% pro-forma Strong Free Cash Flow: £722m versus £503m in 2018 Stren
Slide 6: Continued Growth & Delivery in 2019
Continued Growth & Delivery in 2019 4.3% 2.9% 2.0% 3.3% 2.4% underlying underlying underlying underlying underlying revenue growth revenue growth revenue growth revenue growth revenue growth Underlying Pro-forma Underlying Adjusted Adjusted Earnings Free Cash Dividends Revenue Operating Profit Per S
Slide 7: Strong Cash Conversion & Cash Generation
Strong Cash Conversion & Cash Generation £933m £722m 2.5x 7% Adjusted Free Cash Flow Leverage Dividends Operating 75%+ FCF Per Share Profit Conversion Growth HIGH CASH CONVERSION AND STRONG CASH GENERATION 2019 Full Year Results Presentation 7
Slide 8: Portfolio Resilience & Strength
Portfolio Resilience & Strength Revenue by region Revenue by type ⚫ North America ⚫ Mainland China ⚫ Hong Kong ⚫ Subscription-related 2019 ⚫ Rest of Asia ⚫ UK 2019 ⚫ Events-related ⚫ Continental Europe ⚫ Middle East ⚫ Rest of World BREADTH & BALANCE BY GEOGRAPHY AND BY SOURCE OF REVENUE 2019 Full Ye
Slide 9: Informa Response to COVID-19
Informa Response to COVID-19 COVID-19 ACTION PLAN Prioritise well-being of Colleagues, Customers & Markets Follow Government and health authority guidance and advice Colleagues Customers & Communities • Weekly COVID Executive Management Meeting • Manage Brands and Businesses for long-term • In-marke
Slide 10: Informa Response to COVID-19: The Postponement Programme
Informa Response to COVID-19 COVID-19 ACTION PLAN THE POSTPONEMENT PROGRAMME 100+ c45 c70 13 Brands run Large Brands agreed or in Smaller Brands agreed or Brands Re-Phased to successfully in process of rescheduling in in process of rescheduling 2021 or Cancelled – 2020 so far 2020 – revenue c.£350m
Slide 11: Customer Response to Postponement Programme
Customer Response to Postponement Programme We applaud the @newhopenetwork Faced with this global crisis fuelled by fear, the hospitality industry must not give Please know that we have every team for handling the difficult in to that fear. By coming together at TSE/Catersource, we have an opportuni
Slide 12: The Postponement Programme: Revenue Phasing H1
The Postponement Programme: Revenue Phasing H1 2020 Revenue JAN FEB MAR APR MAY JUN China Events: Rest of World Events: Subscription-related: 2019 Full Year Results Presentation Dark colours – typical seasonality 12 Light colours – rescheduled seasonality
Slide 13: The Postponement Programme: Revenue Phasing H2
The Postponement Programme: Revenue Phasing H2 2020 Revenue JUL AUG SEPT OCT NOV DEC China Events: Rest of World Events: Subscription-related: 2019 Full Year Results Presentation Dark colours – typical seasonality 13 Light colours – rescheduled seasonality
Slide 14: Informa Response to COVID-19
Informa Response to COVID-19 The right decisions Manage Brands & Customer for Colleagues, Brands, Relationships for Customers & Markets long-term value Virtualisation, digital The Postponement partnering and Programme specialist content Pro-active cost management, Maximise opportunities prepared for
Slide 15: 2019 Continued Growth & Financial Delivery
2019 Continued Growth & Financial Delivery Gareth Wright Group Finance Director
Slide 16: 2019 Full Year Results
2019 Full Year Results 22.0% +27.5%x 7.3% Improved Adjusted Operating Profit Higher Reported Revenue Increased Dividend +27.5% to £933.1m (2018: £732.1m) Per Share +22% to £2,890.3m (2018: £2,369.5m) up 7.3% to 23.5p 4.3% (2018: 21.9p) Higher Adjusted Diluted EPS +3.5% 51.3p (2018: 49.2p) +43.
Slide 17: Continued Growth & Financial Delivery in 2019
Continued Growth & Financial Delivery in 2019 2019 2018 £m £m Revenue 2,890.3 2,369.5 Strong Revenue Growth Adjusted Operating Profit 933.1 732.1 • Consistent underlying revenue growth Adjusted Operating Margin 32.3 30.9 • Full period of UBM • Positive currency tailwind Net adjusted finance costs (1
Slide 18: Improving Growth & Mix
Improving Growth & Mix 2019 Revenue Growth (%) 22% Reported Growth 2019 Adjusted Operating Profit Growth (%) 28% Reported Growth 2019 Full Year Results Presentation 18
Slide 19: Broad-Based Divisional Growth
Broad-Based Divisional Growth 2019 2018 Reported Underlying Informa Markets £m £m % % • Continued good growth despite in-year market impacts Revenue • Reported margin lower with full year of lower margin UBM Informa Markets 1,450.2 1,032.2 40.5 4.3 Informa Connect 275.6 277.5 (0.7) 2.9 Informa Conne
Slide 20: Robust Operating Margin
Robust Operating Margin +1.6% 32.3% Robust Operating Margin • Full contribution from UBM, at a lower margin • Portfolio Management 30.9% +1.0% • Underlying growth and synergies • Mix of growth -1.2% • Transactional currency exposure 140bps ADJUSTED OPERATING PROFIT MARGIN BENEFITS FROM FULL YEAR O
Slide 21: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation +49 +8 Increased Free Cash Flow (+£219m) +37 +10 • Higher adjusted Operating Profit £722m +201 • Improving underlying growth (69) • Biennials (17) • Full year contribution from UBM • FX tailwind • 100%+ Operating cash conversion • 75%+ Free cash flow conversion £503m
Slide 22: The Pillars of Strong Free Cash Flow
The Pillars of Strong Free Cash Flow Subscriptions and Events are booked and paid for in advance Advance Booking (65%+ of revenue, >£500m cash advances held today) Re-scheduled events roll bookings and cash payments forward Flexibility Suppliers paid in instalments, in advance and in arrears Low Cap
Slide 23: COVID-19 Financial Scenario Planning
COVID-19 Financial Scenario Planning COVID-19 ACTION PLAN Full liquidity to run the business and no material maturities until 2023 Resilient Subscriptions Related Revenue, Profits & Cash (c.35% of Group) Scenario 1: No further events in H1 2020 Scenario 2: No further events in 2020 • Proposed final
Slide 24: Actively Managed & Secure Long-Term Financing
Actively Managed & Secure Long-Term Financing Pro-forma debt maturity as at 31 Dec 2019 (£m)1 Efficient balance sheet 1000 • Strong free cash flow generation • Covenant leverage reduced to 2.5x 900 800 Active Management of Funding Mix 700 • RCF renegotiated Feb 2019, facility increased to £900m 600
Slide 25: Operating Synergies on track
Operating Synergies on track AIP Cost Synergies Phase I Phase II Phase III • PLC costs • Procurement • Back office services • Corporate duplication • Property • Enterprise platforms • Operational management overlap • Software & Systems • End-to-end processes Operational effectiveness £50m £60-75m ov
Slide 26: 2020 Financial Focus & Discipline
2020 Financial Focus & Discipline Consistent & predictable Subscription-related growth Short-term volatility in Events- (35% of Group revenue) related growth Postponement Programme Pro-active cost management affects seasonality of revenues measures in 2020 £60m run-rate operating Cash flow strength,
Slide 27: Market Specialisation & Growth
Market Specialisation & Growth Stephen A. Carter 2019 Full Year Results Presentation 27
Slide 28: Portfolio Resilience & Strength
Portfolio Resilience & Strength Depth in Consistent Engaged & International Predictable specialist underlying Inclusive reach cash flows markets growth Culture Forward booked & Specialist Specialist Face-to-Face Digital recurring content brands revenue 2019 Full Year Results Presentation 28
Slide 29: Market Specialisation & Growth
Market Specialisation & Growth Accelerated Integration Plan Further Market Specialisation & Future Growth Expand AIP Operating Model our portfolio of B2B products & services AIP Leadership & Talent Strengthen Enhance our operating market positions via AIP Operating Synergies capabilities expansion &
Slide 30: Connecting the dots across the entire tech ecosystem
Connecting the dots across the entire tech ecosystem. 2019 Full Year Results Presentation Page 30
Slide 31: The Omdia advantage
The Omdia advantage – we are connected, expert, and influential Industry briefings – Media audience – 100s of engagements 3.8m unique monthly readers Research with vendors subscribers – 10,000+ Event attendees – Attendee insight – MARKET MARKET 225k+ delegates a year from our 200+ events SENSING REA
Slide 32: Enhance our market positions via Partnerships & Additions
Enhance our market positions via Partnerships & Additions BEAUTY TECH OPEN RESEARCH Expanded Joint Joint Venture on Strengthen and Venture in Tech, including extend Beauty London Tech capabilities in Week open research 2019 Full Year Results Presentation 32
Slide 33: Accelerating sustainable change in our business and markets
Accelerating sustainable change in our business and the specialist markets we serve. Faster to Zero Sustainability Inside Impact Multiplier Moving faster to become Embedding sustainability Multiplying the positive impact a zero waste and net zero inside every one of our brands we create when we impr
Slide 34: The Informa Group in 2020
The Informa Group in 2020 1 One Company, common culture, strong market-facing Brands 2 Strong Operating Performance in 2019 (Cash, Revenue, Earnings) 3 Market Specialisation and Operational Fitness capability combining well 4 Subscription and related businesses trading to plan (c35% Group Revenue) 5
Slide 35: Appendix
Appendix 2019 Full Year Results Presentation 35
Slide 36: The Informa Group: Six Consecutive Years of Growth
The Informa Group: Six Consecutives Year of Growth Reported revenue (£m) Underlying revenue growth (%) Adjusted Operating Profit (£m) *2018 New Informa Underlying Revenue Growth 4,000 5.0 +21% CAGR +300bps 1,100.0 +22% CAGR 2,890 4.0 3.4 3.4* 3.5 933 3,000 2,370 900.0 3.0 732 2,000 1,757 1,345 1.6 7
Slide 37: Informa Markets
Informa Markets Informa Markets creates platforms for industries and specialist markets to trade, c£1.5bn c.£0.5bn 450+ 5.8m+ innovate and grow. Through more than 450 Revenue Adj. Op Profit B2B Brands Attendees international B2B brands, we provide opportunities to engage, experience and do business
Slide 38: Informa Connect
Informa Connect Informa Connect is the Group’s Content, Connectivity and Data business, organising content-driven events, training and £275m+ £45m+ 45+ 700k+ Revenue Adj. Op Profit £1m+ Brands Delegates programmes that provide a platform for professional communities to meet, network and share knowle
Slide 39: Informa Intelligence
Informa Intelligence Informa Intelligence provides specialist data, intelligence and insight to businesses, helping them make better decisions, gain competitive c£350m £100m+ 100+ >30k Revenue Adj. Op Profit B2B Brands Subscribers advantage and enhance return on investment. Through a range of specia
Slide 40: Informa Tech Today
Informa Tech Today Informa Tech informs , educates and connects specialist Technology £250m+ £70m+ 100+ 3.8m communities around the world. Through Revenue Adj. Op Profit B2B Brands Monthly Readers more than 100 B2B brands, we provide specialist intelligence and knowledge, and build platforms for cus
Slide 41: Taylor & Francis Today
Taylor & Francis Today Taylor & Francis publishes peer-reviewed scholarly research and specialist £560m+ c.£220m 2,500+ 150k+ reference-led academic content across Revenue Adj. Op Profit Journal brands Book titles subject areas within Humanities & Social Sciences and Science, Technology and Medicine
Slide 42: IFRS 16 Summary
IFRS 16 Summary Impact of IFRS 16 on FY 2019 Impact on Adjusted Operating Profit +£6.5m Impact on Net Interest Charge (£13.5m) Impact on Adjusted Profit Before Tax (£7.0m) Impact on Adjusted EPS (0.45p) Impact on Closing Net Debt (£301.3m) 2019 Full Year Results Presentation 42
Slide 43: Tax Summary
Tax Summary 2019 2019 Tax ETR £m £m % Reported Profit Before Tax 318.7 (72.6) Adjusted for: Intangible asset amortisation and impairment 321.7 (94.0) Benefit of goodwill amortisation for tax purposes only - 23.0 Deferred tax recognised on fair value adjustments - (16.5) Acquisition and integration c
Slide 44: Cash Flow Summary
Cash Flow Summary 2019 2018 £m £m Adjusted operating profit 933.1 732.1 Depreciation of property and equipment 17.2 13.1 Depreciation of right of use assets 33.1 - Software and product development amortisation and impairment 41.9 42.5 Share-based payments 10.4 8.1 Pension curtailment gain - (0.8) Ad
Slide 45: Other Adjusting Items
Other Adjusting Items 2019 2018 £m £m Intangible amortisation and impairment 321.7 253.4 Acquisition and integration costs 59.7 88.9 Restructuring and reorganisation costs 8.6 13.1 Re-measurement of contingent consideration 3.2 (0.1) VAT charges 1.8 9.1 GMP pension equalisation - 4.5 Adjusting items
Slide 46: Currency Sensitivity
Currency Sensitivity Average Rates Closing Rates 2019 2018 2019 2018 USD 1.28 1.33 1.32 1.27 The impact of a 1 cent movement in the USD to GBP exchange rate in H1 2019: Revenue £13m Annual adjusted operating profit £5m Annual adjusted earnings per share 0.3p 2019 Full Year Results Presentation 46
Slide 47: Balance Sheet Summary
Balance Sheet Summary Restated 31 December 2019 31 December 2018 £m £m Intangibles and goodwill 9,580.5 10,198.3 Property and Equipment 69.2 69.7 Rights of use assets (IFRS 16) 264.4 - Other non-current assets (excluding debt and leases) 69.3 59.2 Current assets (excluding cash and leases) 524.8 546
Slide 48: 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 49: Thank you
O informa Thank you Informa.com