Slide 1: Results to 30 June 2012
Results to 30 June 2012 Peter Rigby Chief Executive Adam Walker Finance Director 25 July 2012 1
Slide 2: Informa Business Strategy
Informa Business Strategy 67% of publishing 74% of publishing revenues revenues High Quality Digital Subscriptions Excellence Geographic Resilient Emerging markets Expansion Events +260 large 20% of Group revenue events 2
Slide 3: The World as we see it
The World as we see it e informa bringing knowledge to life
Slide 4: Financial Summary
Financial Summary Adam Walker 4
Slide 5: Financial Highlights
Financial Highlights Solid financial performance in tough trading conditions Adjusted operating profit increased to £160.1m (H1 2011 £159.1m) Adjusted operating profit margin increased to 25.8% (H1 2011 25.1%) Cash conversion 76% (H1 2011 56%) Net debt to EBITDA 2.3 times Adjusted diluted EPS up 3.4
Slide 6: Income Statement
Income Statement H1 H1 2012 2011 £m £m Revenue 619.6 634.8 Adjusted operating profit 160.1 159.1 Amortisation -67.5 -63.9 Other adjusting items -81.6 -7.3 Operating profit 11.0 87.9 Net interest -12.8 -21.5 Loss / profit on disposal -25.6 0.1 Tax -14.5 -11.3 Loss / profit for the year -41.9 55.2 Adj
Slide 7: Divisional Summary
Divisional Summary H1 H1 Actual Organic 2012 2011 Revenue £m £m % % Academic Information 154.0 145.1 6.1% 3.7% PCI 173.3 181.6 -4.6% -4.5% Events and Training 292.3 308.1 -5.1% -1.6% Total 619.6 634.8 -2.4% -1.2% Adjusted Operating Profit Academic Information 51.2 47.0 8.9% 5.6% PCI 54.0 52.6 2.7% 2
Slide 8: Operating Cash Flow
Operating Cash Flow H1 H1 2012 2011 £m £m Adjusted operating profit 160.1 159.1 Depreciation and software amortisation 10.3 9.7 Share based payments 2.3 1.6 EBITDA 172.7 170.4 Net capital expenditure -11.7 -11.5 Working capital movement -39.9 -70.2 Operating cash flow 121.1 88.7 Adjusted cash conver
Slide 9: Net Funds Flow
Net Funds Flow H1 H1 2012 2011 £m £m Operating cash flow 121.1 88.7 Restructuring and reorganisation -5.2 -5.3 Net interest -16.5 -22.5 Taxation -23.2 -6.8 Free cash flow 76.2 54.1 Acquisitions and disposals -71.0 -103.0 Dividends -71.0 -57.1 Net issue of shares 0.3 0.2 Net funds flow -65.5 -105.8 O
Slide 10: Canada
Canada Acquisition of market leading trade show and conference organiser Sector strengths – construction, real estate, interior design and furnishing FY revenue in 2011 C$25m Operating margin in line with industry Opportunity for organic launches and geo-cloning Experienced management team 10
Slide 11: Divisional Summary
Divisional Summary Peter Rigby 11
Slide 12: Academic Information
Academic Information Resilience across both books and journals T&F Online success & books launch July ‘12 Geo strengths – UK, US, India, Japan, China … Books - growth in ebooks Open Access & Finch report 12
Slide 13: PCI
PCI Market driven revenue decrease Reduced level of consulting across product lines Reduced advertising Reduction in subs revenue in certain verticals (pharma & financial services) Strategy led revenue decrease Removal of hard copy advertising media Reduction in number of marginal reports & consulti
Slide 14: PCI
PCI Growth in core products across key vertical sectors Yield growth and usage increase across core subscription products Product launches in H2 to drive growth IBI / DM integration producing expected savings £12m Chinese Healthcare agreement 14
Slide 15: Events & Training
Events & Training Largest events doing well in H1 with strong forward bookings Canadian acquisition July 2012 9 new large H1 events (6 organic) Smaller conferences tough Consolidation of European events businesses Training – tough H1 pipelines better for H2 15
Slide 16: Executing on Strategy
Executing on Strategy Increased exposure to emerging markets Disposal of European smaller conferences & Robbins Gioia Increased proportion of larger events Rationalisation to focus on high value subscription revenues Reduced advertising, focus on core strengths Increased resilience across the group
Slide 17: Summary & Outlook
Summary & Outlook Solid financial performance in tough trading conditions Focus on managing profitability – rationalisation of revenue streams Investment in product launches and bolt-on M&A Improved cash conversion Strong balance sheet Trading in line with expectations and good future prospects 17
Slide 18: Appendices
Appendices 18
Slide 19: Balance Sheet
Balance Sheet June June 2012 2011 £m £m Intangibles and goodwill 2,596.2 2850.6 Fixed assets 18.1 19.6 Other non-current assets 17.4 5.5 Current assets 262.7 279.4 Other current liabilities -623.4 -664.4 Net debt -844.8 -877.7 Other non-current liabilities -178.2 -215.5 1,248.0 1,397.5 19
Slide 20: Operating adjusting items
Operating adjusting items H1 H1 2012 2011 £m £m Restructuring and reorganisation costs 1.4 6.4 Impairment 80.0 - Acquisition costs 0.3 1.0 Re-measurement of contingent consideration -0.1 -0.1 Intangible asset amortisation 67.5 63.9 Total 149.1 71.2 20
Slide 21: Tax
Tax Tax Effective PBT Charge tax rate £m £m % Statutory results -27.4 14.5 -52.9 Adjusted for: Restructuring and reorganisation costs 1.4 0.1 Intangible asset amortisation 67.5 16.2 Impairment 80.0 - Loss on disposal of business 25.6 - Early termination of cross currency swaps -4.5 -1.1 Deferred tax
Slide 22: Currency
Currency Average Rates Closing Rates H1 H1 June June 2012 2011 2012 2011 USD 1.5838 1.6183 1.5580 1.5983 EUR 1.2128 1.1447 1.2387 1.1045 BRL 2.9455 2.6277 3.2362 2.5043 Movement of 1 cent on the full year USD EUR BRL £m £m £m Revenue 3.7 1.0 0.1 Operating profit 1.5 0.3 0.03 Net debt 3.7 0.3 - 22