Slide 1: 2017 Results
2017 RESULTS 24th November 2017
Slide 2: Executive Summary
EXECUTIVE SUMMARY 1. Delivered another year of strong growth: ● Group revenue up 43% year-on-year - driven by Media division and acquisitions ● Fast-growing adjusted EBITDA up 112% year-on-year 2. Investment in platform: ● Facilitated data-led innovation through content and technology 3. Investment
Slide 3: Future is a global platform for specialist media
“ “ FUTURE IS A GLOBAL PLATFORM FOR “ SPECIALIST MEDIA WITH SCALABLE, DIVERSIFIED BRANDS 3
Slide 4: Financial Review
FINANCIAL REVIEW Penny Ladkin-Brand - Chief Financial Officer 4
Slide 5: Financial KPIs
FINANCIAL KPIs Operating profit* EBITDA margin* £8.9m (2016: £2.8m) 13% (2016: 9%) Operating cash inflows* Recurring revenues £17.1m 27% (2016: 25%) (2016: £6.5m) *Adjusted 5
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Acquisitions have been Continuing: £m 2017 2016 YoY Var quickly and successfully integrated into the wider Revenue 84.4 59.0 43% Group EBITDA* 11.0 5.2 112% Focus on profitability and higher margin activities has EBITDA margin* 13% 9% 44% resulted in improved Operating profit* 8.9
Slide 7: Group Performance - Revenue
GROUP PERFORMANCE - REVENUE Continuing: £m 2017 2016 YoY Var Media 34.1 23.9 43% Magazine 50.3 35.1 43% Total continuing 84.4 59.0 43% % recurring 27% 25% 8% A good year in Media with strong organic revenue growth of 34%* enhanced by acquisitions: ● eCommerce revenue up 107% to £8.9m (2016: £4.3m),
Slide 8: Significant Adjusted EBITDA Growth
SIGNIFICANT ADJUSTED EBITDA GROWTH Significant growth in EBITDA from 2015 - 2017 reflecting the Group’s strategy to become a global platform for specialist media EBITDA growth underpinned by strengthened diversified revenue streams from acquisitions and organic growth through innovation Reflects margin
Slide 9: Group Performance - EBITDA
GROUP PERFORMANCE - EBITDA £m 2017 2016 YoY Var Margin differential between Media Media Division Gross Contribution 27.6 19.5 42% and Magazine divisions remains at 15% leading to EBITDA margin GC margin 81% 82% (1pp) expansion as revenue mix changes Magazine Division Gross Contribution 33.4 23.5 42%
Slide 10: P&L Exceptional Items
P&L EXCEPTIONAL ITEMS The vacant property provision movement £m 2017 2016 during the year relates to surplus office space predominantly in the US Property 1.2 (0.5) Restructuring and 1.1 1.8 Restructuring and redundancy costs relate redundancy mainly to staff termination payments and other restructur
Slide 11: Cash Flow
CASH FLOW Cash inflow from operations before exceptional items of £17.1m (2016: £6.5m) reflects a significant focus on improving the Group’s working capital cycle, timing benefit of Home Interest acquisition and bonus accrual Acquisitions of Imagine and Home Interest were funded through the issue of sha
Slide 12: 2017 in Summary
2017 IN SUMMARY 1. Strong improvement in operating profit and margin ● Result of successfully completing and integrating several key strategic acquisitions 2. Strong cash performance ● Adjusted free cash flows of £15.3m (2016: £4.6m) 3. Acquisitions integrated and on track 4. We are considering the pa
Slide 13: Business Update & Strategy
BUSINESS UPDATE & STRATEGY Zillah Byng-Thorne - Chief Executive 13
Slide 14: Executive Summary
EXECUTIVE SUMMARY 1. Delivered another year of strong growth: ● Group revenue up 43% year-on-year - driven by Media division and acquisitions ● Fast-growing adjusted EBITDA up 112% year-on-year 2. Investment in platform: ● Facilitated data-led innovation through content and technology 3. Investment
Slide 15: Our Strategy
WHERE WE ARE GOING OUR STRATEGY Future is a global platform for specialist media with scalable, diversified brands. Creating fans of our brands by giving them a place they want to spend their time, where they go to meet their needs. Continuing to create loyal communities. Expanding our global reach t
Slide 16: Global Platform for Specialist Media
GLOBAL PLATFORM FOR SPECIALIST MEDIA Facilitating material diversified revenue streams 16
Slide 17: Specialised Media in Multiple Sectors
SPECIALISED MEDIA IN MULTIPLE SECTORS Specialist high value sectors, scalable markets delivering diversified revenues Technology Gaming & Entertainment Music Creative & Photography Field Sports Knowledge Home Interest 17
Slide 18: Our Audience Is Key to Our Success
OUR AUDIENCE IS KEY TO OUR SUCCESS Highly passionate and engaged communities +43% YoY +18% YoY +26% YoY 18
Slide 19: Monetising Audience More Effectively
MONETISING AUDIENCE MORE EFFECTIVELY Scalable technology combined with data insight supports organic growth Future US Media growth eCommerce growth +35% CAGR +161% CAGR 19
Slide 20: Investment in Tech Driving Digital Advertising Growth
INVESTMENT IN TECH DRIVING DIGITAL ADVERTISING GROWTH Investment in technology stack and improving viewability, load times and implementing lead header bidding has facilitated: ● Growth in digital advertising: up 21% year-on-year ● Data driven yield management driving growth ● Coupled with innovatio
Slide 21: Data-Led Innovation Through Content & Technology
DATA-LED INNOVATION THROUGH CONTENT & TECHNOLOGY ● New initiatives delivered to drive organic growth ● Launched: ○ DigitalCameraWorld.com in July 2017 - recognising the needs of our audience ○ Realhomes.com in November 2017, a home interiors website, to take advantage of current trends in our audien
Slide 22: Home Interest Acquisition
HOME INTEREST ACQUISITION Differentiated & specialist brands Nationwide, market-leading events 22
Slide 23: Buy & Build: Home Interest Case Study
BUY & BUILD: HOME INTEREST CASE STUDY Investments made in our platform and data underpin our buy & build strategy ● Focus on building eCommerce revenue ● Focus advertising using the advantages of our technology stack 23
Slide 24: Summary
SUMMARY 1. Strategy to diversify revenues delivering substantial growth in revenue and profit 2. Strong revenue performance in eCommerce, ongoing investment in digital assets underpin organic growth 3. Buy & build strategy resulting in increased revenue diversification, Imagine and Team Rock fully int
Slide 25: Appendix
APPENDIX 2a)
Slide 26: Why We Exist
Why We Exist “ We change people’s lives through sharing our knowledge and expertise “ with others, making it easy and fun for them to do what they want. 26
Slide 27: How We Behave
HOW WE BEHAVE... • We are part of the audience and their community • We are proud of our past and excited about our future • We all row the boat • Let’s do this! • It’s the people in the boat that matter • Results matter; success feels good 27
Slide 28: Delivered by a Team with a Track Record
DELIVERED BY A TEAM WITH A TRACK RECORD Organised to focus on results and the ability to scale Zillah Byng-Thorne Chief Executive Julian March Claire MacLellan Ben Greenish Jason Kemp Penny Kevin Li-Ying Aaron Asadi Neville Daniels Managing Director Managing Director Managing Director Director of La
Slide 29: Global Scalable & Diversified Brands
GLOBAL SCALABLE & DIVERSIFIED BRANDS +11% CAGR Market-leading and award-winning #1 Consumer technology website in the UK, growing 16% #1 PC gaming website in the world, growing 33% “Best Online Consumer Media Brand” AOP Digital Publishing Awards 2016 Creative & design content website in #1 the UK an
Slide 30: Global Scalable & Diversified Brands
GLOBAL SCALABLE & DIVERSIFIED BRANDS Top 5 brands account for 55% of total brands’ revenue* * Brands revenue consists of magazines, websites and events revenue for the period 2017. Team Rock revenue and Homebuilding & Renovating revenue prior to acquisition taken from management information. 30
Slide 31: Acquisitions
ACQUISITIONS Expanding our global reach through acquisitions • Acquired in January 2017 • Home Interest acquired in • Completed in October 2016 • Integration fully completed August 2017 • Integration fully completed • Added scalable brands with loyal • Integration progressing well - • Resulted in si
Slide 32: Thank You
THANK YOU 32