Informa PLC · LSE:INF
Informa — FY2005 Earnings Presentation
37 slides from Informa's earnings presentation, 2006
Slide 1: Leading Global Information Specialist
Leading Global Information Specialist To the Academic & Scientific, Professional and Commercial Communities through Publishing, Events and Performance Improvement informa )
Slide 2: Informa highlights
informa Informa highlights Extended global reach Balanced portfolio Financial review Business models Divisional analysis IIR integration update Outlook for 2006
Slide 3: Enhanced growth, leading market positions, broad geographical strength
- Enhanced growth • ./*012 3,*4 • 5 1( .67/1 2 3874 Leading market positions # ' 9 Broad geographical strength ! Balanced revenue streams *++, 3
Slide 4: % *+ 7++++ ) 6++++ & /7++ & *+++ 68+ 6*+3 6++3
% *+ 7++++ ) 6++++ & /7++ & *+++ 68+ 72 6*+3 6++3 4
Slide 5: 2005 PF revenue by geography
! ' 16% 17% 2005 PF Rev 26% 41% : UK North America Continental Europe Rest of World $ ; 16% 2004 Rev 19% ! < 33% 32% 5
Slide 6: Pro-forma 2005 revenue by type
' ; != $ ' Advertising 4% Subscriptions •" & 24% $ PI 22% • 1/+4 > & •- & > Copy sales 13% • $ • > $ Events 37% Note: Pro-forma 2005 revenue 6
Slide 7: Merger benefits realised, progressive dividend, OP margin 20%+
# - • ./*012 3,*4 OP margin 20%+ • 5 1( .67/1 2 3874 $ Merger benefits realised • ,4 • 624 5 ( Progressive dividend % 3*+4 Cash conversion 100%+ $ 6624 : ./281 7 7
Slide 8: Divisional turnover and operating profit
*++8' ( &% Division 2005 2004 Total Total Increase Organic £'m £'m % % Turnover Academic 260.5 189.5 37 4 Professional 217.8 93.3 133 3 Commercial 251.0 167.0 50 12 729.3 449.8 62 6 Operating Profit Academic 65.5 52.5 25 10 Professional 45.4 21.2 114 14 Commercial 36.4 21.7 68 21 147.3 95.4 54 13 8
Slide 9: Operating profit and adjusted EPS
*++8( $ 2005 2004 Increase Organic £’m £’m % % Operating Profit 91.4 62.3 47 Reorg and merger costs 8.3 9.3 Amortisation & impairment 47.6 23.8 Adjusted OP profit 147.3 95.4 54 13 Adjusted OP margins 20.2 21.2 Organic OP margins 22.2 20.7 Adjusted interest -31.9 -15.8 Adjusted tax -28.9 -21.7 86.5 5
Slide 10: Adjusted operating profit bridge
" .67/1 2 160 155 150 145 140 £-3.3m £-0.9m £147.3m 135 £32.3m 130 125 120 115 £6.5m 110 £8.1m 105 100 £9.2m 95 90 85 80 £95.4m 75 70 65 60 2004 T& F Cost Underlying Acquisitions FX impact Other 2005 Adjusted contribution savings (net revenue Adjusted operating 1-1-04 to of interest growth @ operati
Slide 11: Cash Flow
# $ Cash Flow 2005 2004 £'m £'m Operating profit 91.4 62.3 Amortisation / impairment/ depreciation 58.0 31.7 Movements working capital 11.5 -2.1 Operating cash inflow 160.9 91.9 Interest (net) -28.2 -12.7 Tax -12.2 -9.4 Capex -15.2 -8.5 Acquisitions -812.8 -23.5 Other 0.2 3.2 Dividends -27.3 -15.8 S
Slide 12: The Informa Business Models
The Informa Business Models informa QM2 limps = . ; _ itzen ship into pare Crushing ‘no’ ;illheldss vote kills EU =v ports directive THE CHARTERERS P&! CLUB cd EXCLUSIVELY FOR CHARTERERS
Slide 13: Subscription, copy sales and advertising revenue
?=- ; : & : ) > $ ! & & > 9 - & = & * Subscription, copy sales and advertising revenue 13
Slide 14: =% ; > & 6+ - • /+4 6++ & 0+43 $ 7+4 @/4
=% ; > & 6+ - • 1 /+4 6++ 73 & 0+43 $ 7+4 @/4 # 6++ 14
Slide 15: =A )& - &# ! ) • ' > & ( & B >
=A )& - &# ! ) • ' > & ( & B > $ ) $ ) $ 9 $ ' 88+ /+ 15
Slide 16: Revenue mix: advertising, events, copy sales
*++8 Advertising Events 3% 7% ( $ 74 *84 .,81 8 C6+4 D $ & $ /1 84 > $ Subscriptions ; ) Copy sales 48% 42% ! $ & & 16
Slide 17: ( )*++, ,7 $ 66** *++, :$ > " ) E ,+++ F •
( )*++, ,7 $ 5 66** *++, :$ > " ) E ,+++ F • > # & 17
Slide 18: Revenue mix: advertising, subscriptions, events
*++8 Advertising 3% 6674 674 C $ ! Subscriptions • ( 3624 34% PI # & 49% % Events 13% Copy sales $ ! 1% :$ ) > 18
Slide 19: ( )*++, & .8 ! •; • ; ) ! ' G " !
( )*++, & .8 3 ! •; • ; ) ! ' G " ! $ " *++8 & &H > $1 :$ ) $ 19
Slide 20: Revenue mix: advertising, subscriptions, copy sales
*++8 Advertising Subscriptions 7% 12% ( *64 Copy sales 6*4 3% 7 ' $ • B 36+4 • % 36/4 $ ' • ; 1 Events 78% 2 • & ; 20
Slide 21: ( )*++, > & > I J ! • & • ; ) '
( )*++, > & > I J ! • & • ; ) ' • ! $ % $ ; $ $ $ ! 21
Slide 22: Update on IIR Acquisition
Update on IIR Acquisition informa )
Slide 23: Meeting acquisition criteria
'= ) )& & : $ ! ) Meeting acquisition criteria Broader geographical reach ( Deeper vertical markets $ 0+ & Minimal product overlap >$ & PI market leadership > $ & " ! 23
Slide 24: Current Trading
Current Trading e Encouraging start to 2006 e End-year momentum maintained into Q1 e Early 2006 highlights: ¢ Performance Improvement e Middle East events e Academic books e Focus on exploiting integration benefits e Confident of meeting our targets for another successful year informa )
Slide 25: Visit www.informa.com
Visit www.informa.com informa °) 7 Search Informa Specialist Information for global markets x ») | Home Contact Abo Investor: ns Subjects Me s GlobalReach Brands Careers Advanced Search News: Your mobile is good for you - Report- Teleco, BOOK Catalysis of Organic Browse Subjects Informa plc is the l
Slide 26: Appendices
Appendices informa
Slide 27: Academic & Scientific turnover
Academic & Scientific 2005 2004 Increase Underlying £'m £'m % % Turnover STM 161.8 121.7 33 2 HSS 98.7 67.8 46 7 260.5 189.5 37 4 Adjusted Operating Profit STM 43 36 19 10 HSS 22.5 16.5 36 9 65.5 52.5 25 10 Adjusted Operating Margin % 25.1 27.7 27
Slide 28: Professional turnover
Professional 2005 2004 Increase Underlying £'m £'m % % Turnover Financial Data Analysis 60.8 60.2 1 1 Finance, Insurance, Law & Tax 50.8 33.1 53 6 Performance Improvement 106.2 0 100 - 217.8 93.3 133 3 Adjusted Operating Profit Financial Data Analysis 17.9 15.9 13 13 Finance, Insurance, Law & Tax 9.
Slide 29: Commercial turnover
Commercial 2005 2004 Increase Underlying £'m £'m % % Turnover Regional Events 143.1 71.7 99 15 Telecoms & Media 48.4 37.7 28 17 Maritime & Commodities 59.5 57.6 3 3 251.0 167.0 50 12 Adjusted Operating Profit Regional Events 18.6 8.4 121 15 Telecoms & Media 12.0 8.6 40 26 Maritime & Commodities 5.8
Slide 30: Pro-forma revenue
> ' Pro-forma Revenue 2005 2004 Total Total Increase Increase £'m £'m £'m % Turnover 922.1 817.1 105.0 13 PI 202.6 157.3 45.3 29 Subscriptions 225.2 217.1 8.1 4 Copy sales 120.6 120.9 -0.3 0 Advertising 32.8 30.4 2.4 8 Events 340.9 291.4 49.5 17 922.1 817.1 30
Slide 31: Pro-forma revenue by geography
> ' & & 2005 2004 Total Total Increase By Geography £'m £'m % UK 152.4 148.5 3 US 380.0 331.6 15 CE 240.8 216.8 11 RoW 148.9 120.2 24 922.1 817.1 31
Slide 32: Pro-forma revenue by division
> ' &% 2005 2004 Total Total Increase By Division £'m £'m % Academic 268.8 257.2 5 Professional 333.5 278.2 20 Commercial 319.8 281.7 14 922.1 817.1 32
Slide 33: Pro-forma turnover by business unit
> % ' % 2005 £'m 2004 £'m Increase % Academic STM 170.1 164.8 3 HSS 98.7 92.3 7 268.8 257.1 Professional Fin. Data Analysis 60.8 60.2 1 Finance, Insurance, Law & Tax 68.4 59.7 15 PI 204.3 158.3 29 333.5 278.2 Commercial Regional events 208.3 180.6 15 Telecoms 52 44.6 17 Maritime & Commodities 59.5 5
Slide 34: Pro-forma adjusted operating profit
5 ( > 2005 2004 Total Total Increase Increase £'m £'m £'m % Adjusted Operating Profit 179.7 152.2 27.5 18 Adjusted OP by Division 2005 2004 Total Total Increase £'m £'m % Academic 67.5 62.4 8 Professional 64.7 53.7 20 Commercial 47.5 36.1 32 179.7 152.2 34
Slide 35: Pro-forma operating profit by business unit
> % ( % 2005 £'m 2004 £'m Increase Academic STM 47.0 42.1 12 HSS 20.5 20.3 1 67.5 62.4 Professional FI 17.7 15.9 11 ILT 15.9 14.0 14 PI 31.1 23.8 31 64.7 53.7 Commercial Regional events 28.8 21 37 Telecoms 12.9 10.4 24 MTT & Commods 5.8 4.7 23 47.5 36.1 Total 179.7 152.2 18 Note: Proforma tables inc
Slide 36: Balance sheet
&" 2005 £'m 2004 £'m Goodwill 1123 603 Other Intangibles 936 481 Fixed Assets 22 21 Investments 10 11 Deferred Tax 13 40 2104 1156 Trade and other debtors 193 104 Inventory 31 28 Cash 21 19 Trade creditors and other -156 -81 Tax -59 -23 Debt -63 -16 -33 31 Debt > 1 year -693 -305 Pension -18 -23 Oth
Slide 37: Pro-forma reconciliation of turnover and operating profit
> : ' Turnover Informa IIR Group Informa IIR Group 2005 £'m 2005 £'m 2005 £'m 2004 £'m 2004 £'m 2004 £'m Turnover reported 536.8 192.5 729.3 449.8 449.8 Turnover pre-acquisition IIR 192.8 192.8 312.9 312.9 Turnover pre-acquisition TF 54.4 54.4 Pro-forma Group 536.8 385.3 922.1 504.2 312.9 817.1 Adju