Slide 1: 2020 Half-Year Results: Stability & Security through 2021 & beyond
2020 Half-Year Results Stability & Security through 2021 & beyond 21 September 2020
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: Knowledge & Information Economy through COVID-19
Knowledge & Information Economy through COVID-19 1000% 1.9ZB increase in number of virtual events 500% Webinars forecast 2020 through COVID-19 Source: Forbes Online market platforms increase in House Party downloads in internet video traffic Source: OMDIA first week of March Source: Business of Apps
Slide 4: Stability and Security at Informa
Stability and Security at Informa Stability and security in the face of the significant impact of COVID-19 on physical events Subscriptions High-Quality Research Health & Nutrition Specialist Brands Customer Relationships Physical Security Sciences Depth in Specialist Markets Specialist Marketing Se
Slide 5: H1 2020 Key Financial Highlights
H1 2020 Key Financial Highlights Robust Subscription-led performance and strong start to the year by Event-led businesses before COVID-19 disruption and launch of The Postponement Programme Group Revenue: £814m versus £1,408m in H1 2019 Adjusted Operating Profit: £119m versus £436m, with c.£300m of
Slide 6: Depth & Resilience in Information & Intelligence businesses
Depth & Resilience in Information & Intelligence businesses • Specialist content with 160k+ subscribers and 136m articles • Specialist B2B data and content with over 100k active users downloaded in the first half • Over 500 analysts and editors focused on specialist markets • Over 500 editors and sp
Slide 7: Specialist Brands, Data & Relationships in Events businesses
Specialist Brands, Data & Relationships in Events businesses Specialist Markets Virtual & Digital Solutions, Media, Data, Research & Marketing Services Customer insights delivered c£100m revenue in H1 across Informa Markets, Connect & Tech Highly qualified Specialist Brands Virtual & Digital Solutio
Slide 8: Macroeconomic Impact of COVID-19
Number of new cases (‘000s) Cumulative cases (m) 0 5 10 15 25 30 35 20 100 150 200 250 300 350 0 50 Mar 1 Mar 1 Mar 11 Mar 21 Mar 31 Mar 31 Apr 10 Apr 20 Apr 30 Apr 30 May 10 May 20 May 30 May 30 June 9 June 19 June 29 June 29 Global COVID-19 Cases July 9 2020 Half-Year Results: September 2020 July
Slide 9: COVID-19 Forward Intelligence
COVID-19 Forward Intelligence COVID-19 Research & Development Tracker COVID-19: Clinical Trials Status Therapeutics/Vaccines Estimated Timelines 3,500 ⚫ Clinical trials 3,045 Number of trials/drugs 3,000 ⚫ Industry pipeline drugs 2,500 2,000 1,500 592 1,000 500 0 9 162330 6 132027 4 111825 1 8 15222
Slide 10: Revenue outlook: 2020 Vigilant Case Scenario outlined Apr/June
Revenue outlook: 2020 Vigilant Case Scenario outlined Apr/June Domestic Exhibitors Int’l Exhibitors Region Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mainland 2020 THE VIGILANT CASE China Hong Kong Zero Physical Events until Q4 Singapore Rest of Gradual return everywhere ASEAN from October NO PHYSICAL
Slide 11: Latest 2020 Revenue Outlook
Latest 2020 Revenue Outlook Domestic Exhibitors Int’l Exhibitors Region Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mainland Latest 2020 Revenue China Outlook Hong Kong Physical Events returned in Singapore Mainland China in July Rest of Limited Physical Events ASEAN anywhere else in 2020 Middle East NO
Slide 12: COVID-19 Disruption to Physical Events outside Mainland China
COVID-19 Disruption to Physical Events outside Mainland China 2020 Revenue JUL AUG SEP OCT NOV DEC Mainland China Physical Trade Shows: ⚫ Events schedule as at June 2020 ⚫ Current Events schedule Loss of International participation North America Physical Trade Shows: ⚫ Events schedule as at June 202
Slide 13: Return & Recovery in Mainland China
Return & Recovery in Mainland China • Steady return and recovery in Mainland China • Simultaneous return of permissions and confidence • Domestic business activity approaching pre-COVID levels • Domestic events business in Mainland China back to operating capability, with August cash collections thr
Slide 14: Moving to the Next Stage of Our COVID-19 Action Plan
MOVING TO THE NEXT STAGE OF OUR COVID-19 ACTION PLAN Postponement Extended to mid/late Spring 2021 Effective Cost & Cash Management • Postponement Programme extended to mid/late Spring • £300m total savings to adj. operating profit in H1 2020 through: 2021, with c250 physical events and £300-400m bu
Slide 15: Financial Stability & Security
Financial Stability & Security Gareth Wright Group Finance Director 2020 Half-Year Results: September 2020 15
Slide 16: H1 2020 Income Statement
H1 2020 Income Statement H1 2020 H1 2019 £m £m Group Revenue Revenue 814.4 1407.6 • Robust Subscriptions-led performance Adjusted Operating Profit 118.6 435.7 • Strong start to year by Event-led businesses Adjusted Operating Margin 14.6 31.0 • COVID-19 disruption and Postponement Programme Net adjus
Slide 17: H1 2020 Divisional Summary
H1 2020 Divisional Summary H1 2020 H1 2019 Reported Underlying Subscription-led Businesses £m £m % % Resilient subscription-led, specialist knowledge and Revenue information businesses Informa Markets 284.7 722.0 (60.6) (45.1) Informa Intelligence Informa Connect 65.5 141.6 (53.7 (42.6) • c90% renew
Slide 18: Sources of Revenue in H1 2020
Sources of Revenue in H1 2020 Events Businesses Subscriptions Businesses £400m± £400m± £814.4m H1 2020 Group Revenue H1 2019 Physical Events Revenue Virtual, Media, Data, Research & Marketing Services Taylor & Francis 2020 Half-Year Results: September 2020 18
Slide 19: H1 2020 Free Cash Flow Analysis
H1 2020 Free Cash Flow Analysis Positive Free Cash Flow in H1 • Continued high level of cash conversion • Cost Management Programme £71.3m • Cashflow controls H1 Free Cash Flow • Customer commitment to forward bookings • H1 working capital inflow • Lower absolute profit due to COVID-19 disruption c£
Slide 20: Moving to the Next Stage of Our COVID-19 Action Plan
MOVING TO THE NEXT STAGE OF OUR COVID-19 ACTION PLAN Postponement Extended to mid/late Spring 2021 Effective Cost & Cash Management • Postponement Programme extended to mid/late Spring • £300m total savings to adj. operating profit in H1 2020 through: 2021, with c250 physical events and £300-400m bu
Slide 21: Cost Management Programme
Cost Management Programme H1 Cost Savings H2 Cost Savings 2020 Cost Management Programme £300m± £300m± £600m+ £220m± direct £80m± indirect £180m± direct £120m± indirect • Venue rental • Recruitment Pause • Venue rental • Further Discretionary • £400m direct savings to adjusted operating profit • Ven
Slide 22: Current liquidity and financing secured to 2022
Current liquidity and financing secured to 2022 Debt maturities as at 30 June 2020 (£m) ⚫ USPP ⚫ EMTN No drawn maturities until 2022 1000 ⚫ RCF drawn 900 --- RCF Undrawn --- SCCF Undrawn Average maturity of 5.4 years 800 700 No Substantial liquidity 600 Maturities (£2.8bn)1 until 2022 500 Resilient
Slide 23: No Maturities until 2023
Pro-forma liquidity and financing secured to 2023 Pro-forma debt maturities as at 30 June 2020 (£m)1 ⚫ USPP ⚫ EMTN No drawn maturities until 2023 1000 ⚫ RCF drawn --- RCF Undrawn 900 --- SCCF Undrawn Average maturity of 5.8 years No 800 ⚫ £500m Euro Bond 700 Substantial liquidity 600 Maturities (£1.
Slide 24: Stability & Security through 2021
Stability & Security through 2021 Stability & Security Effective Cost Management ✓ £600m+ cost savings Monthly Cashflow Positive ✓ Cash controls by January 2021 • Resilient trading in subscriptions and non-physical events • Reshaped cost base • Lower financing costs • Focus on cash retention CASH •
Slide 25: Stability & Security through 2021 & beyond
Stability & Security through 2021 & beyond Stephen A. Carter Group Chief Executive 2020 Half-Year Results: September 2020 25
Slide 26: Moving to the Next Stage of Our COVID-19 Action Plan
MOVING TO THE NEXT STAGE OF OUR COVID-19 ACTION PLAN Postponement Extended to mid/late Spring 2021 Effective Cost & Cash Management • Postponement Programme extended to mid/late Spring • £300m total savings to adj. operating profit in H1 2020 through: 2021, with c250 physical events and £300-400m bu
Slide 27: Postponement Programme Extended to mid/late Spring 2021
Postponement Programme Extended to mid/late Spring 2021 Physical Trade Physical Trade Show Revenue c.$400m delay Show Revenue 1 Jan to Spring 2019 1 Jan to Spring 2021* Postponement Programme extension phases and secures physical events revenue to late 2021 2020 Half-Year Results: September 2020 * E
Slide 28: Cost Management Programme £600m+
Cost Management Programme £30-35m £200m+ Targeted Compulsory £20-30m Redundancies c.£400m Voluntary Marketing & Severance Promotion £200m+ net annualised indirect £1.5-2m Programme cost savings secured by the end of 2020 with £140m+ realised in-year 2020 Sabbatical Licenses £90-100m Programme Compen
Slide 29: Virtual Events & Digital Services
Virtual Events & Digital Services • Extending our specialist brands, market knowledge and customer relationships to Unlimited Reach provide digital connectivity and targeted lead generation solutions to Events customers • Four main areas of focus: Broader customer opportunity • Virtual Event Solutio
Slide 30: Virtual events: brands, data and customer relationships
Specialist Brands 500+ virtual events Specialist Data 500k+ attendees Specialist Content 150+ countries reached Customer Relationships 1,300+ sponsors Specialist Markets 300+ brands 6,500+ exhibitors Specialist Knowledge 2020 Half-Year Results: September 2020 30
Slide 31: Four Market Case Studies
Four Market Case Studies Cyber Security Bio Tech Food & Ingredients Fashion Wholesale/Retail c1000 1,600+ 12 week 3,000 week 1 1,000+ 150 sponsors 16k+ attendees 8 week product companies delegates product attendees exhibitors 88k networking c6k virtual 47 countries 600+ week 1 9,000 week 1 35k+ requ
Slide 32: Informa AllSecure
• Informa AllSecure is Informa’s approach to enhanced health and safety standards at our events following COVID-19 • Best practice guidelines to ensure the highest standards of hygiene and bio-safety • Developed in partnership with industry peers, venue owners, industry associations and other partne
Slide 33: Revenue Stability & Security for Informa through 2021
Revenue Stability & Security for Informa through 2021 North America & EMEA Physical Events £550m+ £250m+ £m? £840m+ 2021 Revenue Baseline £1.7bn/ £1.7bn- Subscriptions Media, Data, Research Virtual Events & Digital Services Physical Events Businesses & Marketing Services (Virtual Solutions, Marketpl
Slide 34: Appendices
Appendices 2020 Half-Year Results: September 2020 34
Slide 35: Taylor & Francis
Key Brands Taylor & Francis publishes peer-reviewed scholarly research and specialist reference-led academic content across subject areas within Humanities & Social Sciences and Science, Technology and Medicine. It is recognised internationally through its major publishing brands such as Taylor & Fr
Slide 36: Informa Intelligence
Key Brands Informa Intelligence provides specialist data, intelligence and insight to businesses, helping them make better decisions, gain competitive advantage and enhance return on investment. Through a range of specialist B2B subscription brands, we provide critical intelligence to niche communit
Slide 37: Informa Markets
Key Brands Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Through more than 450 international B2B brands, we provide opportunities to engage, experience and do business via face-to-face exhibitions, specialist digital content and actionable data
Slide 38: Informa Connect
Key Brands Informa Connect is the Group’s Content, Connectivity and Data business, organising content-driven events, training and programmes that provide a platform for professional communities to meet, network and share knowledge. With over 500 major brands across the world, it has particular stren
Slide 39: Informa Tech
Key Brands Informa Tech informs, educates and connects specialist Technology communities around the world. Through more than 100 B2B brands, we provide specialist intelligence and knowledge, and build platforms for customers to engage, learn and be inspired to create a better digital world. Revenue
Slide 40: Accelerating sustainable change in our business and specialist 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 41: Tax Summary
Tax Summary H1 2020 H1 2020 H1 2020 Tax Effective tax rate £m £m % Reported Loss Before Tax (801.2) 34.7 Adjusted for: Intangible asset amortisation and impairment 763.4 (36.2) Benefit of goodwill amortisation for tax purposes only - 10.8 Acquisition and integration costs 33.9 (5.2) Restructuring an
Slide 42: Cash Flow Summary
Cash Flow Summary Reported Reported Reported H1 2020 H1 2019 FY 2019 £m £m £m Adjusted operating profit 118.6 435.7 933.1 Depreciation of property and equipment 8.5 8.4 17.2 Depreciation of right of use assets 16.9 15.8 33.1 Software and product development amortisation and impairment 19.8 21.8 41.9
Slide 43: Other Adjusting Items
Other Adjusting Items H1 2020 H1 2019 £m £m Intangible amortisation and impairment 763.4 158.3 Acquisition and integration costs 33.9 20.1 Restructuring and reorganisation costs 16.2 6.9 Onerous contracts and one-off costs associated with COVID-19 43.4 - Re-measurement of contingent consideration 1.
Slide 44: Currency Sensitivity
Currency Sensitivity Average Rates Closing Rates H1 2020 H1 2019 H1 2020 H1 2019 USD 1.26 1.30 1.23 1.27 The impact of a 1 cent movement in the USD to GBP exchange rate in H1 2020: Revenue £11.2m Annual adjusted operating profit £6.0m Annual adjusted earnings per share 0.3p 2020 Half-Year Results: S
Slide 45: Balance Sheet Summary
Balance Sheet Summary 30 June 2020 31 December 2019 £m £m Intangibles and goodwill 9,350.7 9,581.8 Property and Equipment 67.4 69.0 Right of use assets (IFRS 16) 247.5 264.4 Other non-current assets (excluding debt and leases) 59.5 69.3 Current assets (excluding cash and leases) 573.9 524.5 Deferred
Slide 46: 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 47: Thank you
Thank you Informa.com