Slide 1: RM plc 6 months to 31 May 2013
RM plc 6 months to 31 May 2013 David Brooks Chief Executive Officer Iain McIntosh Chief Financial Officer To be read in conjunction with the Interim Results announcement released on 8 July 2013 1
Slide 2: Overview
Overview Overview w Chairman • New Chairman and newand CEOnew appointed CEO appointed perationally • Operationally improved improved first half first half Revenue– excluding Revenue exited excluding businesses exited businesses declined 2.6% declined 2.6% Adjusted– operating Adjusted profit operatin
Slide 3: Group Financial Summary
Group Financial Summary 6 months to 6 months to Year to £m % Change 31 May 2012 31 May 2013 30 Nov 2012 Revenue excluding exited businesses 122.0 118.8 -2.6 285.9 Revenue including exited businesses 124.7 118.8 -4.7 288.7 Adjusted* operating profit excluding exited businesses 4.4 5.2 16.0 14.0 Adjus
Slide 4: Group Revenue & Adjusted Operating Profit
Group Revenue & Adjusted Operating Profit Revenues excluding exited businesses declined by 2.6% (4.7% including exited) Adjusted operating profit excluding exited businesses increased by 16% (33% including exited) Adjusted Operating Profit Revenue £m by Segment* £m *Adjusted operating profit and EPS
Slide 5: FY13 Half-Year Divisional Summary
FY13 Half-Year Divisional Summary 6 months to 31 May 2013 excluding exited businesses Assessment Education Education Unallocated and Data Total £m Technology Resources Central costs Services 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Revenue 83.9 82.6 28.6 26.4 9.5 9.8 - - 122.0 118.8 Adjuste
Slide 6: RM Cash Flow Bridge
RM Cash Flow Bridge Net funds Cash Dividends Defined benefit Capex Other Net funds at 30 November 2012 generated pension payments at 31 May 2013 by operations in excess of service costs
Slide 7: Pensions
Pensions IAS 19 balance sheet deficit increased since last year end £m Investments at 31 May 2013 Equities 52% Deficit at 30 Nov 2012 (20.4) £(15.7)m net of tax Fixed income Cash in excess of service cost 2.2 • Gilts 29% Asset returns 12.2 • Corporate bonds 19% Total 100% Interest on liabilities (3.
Slide 8: Divisional Summary
Divisional Summary
Slide 9: Education Technology
Education Technology Financial performance Revenue Adjusted operating profit Interim profitability is not a good indicator of full-year outcome 9
Slide 10: Education Technology
Education Technology • Demand for differentiated PC devices reduced with the commoditisation of the hardware market, offset by movement to tablet and consumer-led devices at lower margins • Annual BSF revenues within Managed Services expected to decline by c.£40m between 2013 and 2015 • Winning shar
Slide 11: RM Unify
RM Unify RM Unify has launched: • Launched to Scotland (via Glow contract) in late 2012 • Launched to rest of UK in April 2013 Over 3,500 schools signed up: • 3,205 via the Glow contract • 168 via Staffordshire Local Authority contract • Over 200 via individual school contracts • Opportunity to tran
Slide 12: RM Books
RM Books Well positioned for when wider adoption of digital books in schools starts 23 publishers/imprints signed Agnostic on hardware and operating system Over 3,700 ebooks available Revenues insignificant Over 4,000 schools registered UK ebook market UK publisher sales of digital books1 % increase
Slide 13: Education Resources
Education Resources Financial performance Revenue Adjusted operating profit Interim profitability is not a good indicator of full-year outcome 13
Slide 14: Education Resources
Education Resources • Modest revenue decline in tough budgetary environment – Decline in TTS catalogue orders – TTS Supermarket voucher programme delayed and changed at customer request, so minimal revenue and contribution expected in H2 – RM SpaceKraft revenue continues to decline • Margins remain
Slide 15: Assessment and Data Services
Assessment and Data Services Financial performance Revenue Adjusted operating profit Interim profitability is not a good indicator of full-year outcome 15
Slide 16: Assessment and Data Services
Assessment and Data Services • Steady revenues reflecting growing Assessment examination volumes • Assessment pilot completed in Singapore • NPD (National Pupil Database) contract extended to December 2014 • Preferred bidder under English SPDP (Schools Performance Database Programme) new procurement
Slide 17: Outlook
Outlook
Slide 18: Outlook
Outlook Outlook Outlook • Continued tight ntinued • Continued tinued tightbudgetary tight budgetary tight budgetary conditions conditions conditions andpolicy and policy and changes policy for changes changes for UK education for education educationUK education • Education Resou ucation cation• Educ
Slide 19: Appendices
Appendices
Slide 20: Income Statement
Income Statement 6 months to 31 May £m 2012 2013 Adjusted Adjustments* Total Adjusted Adjustments* Total Revenue 124.7 - 124.7 118.8 - 118.8 Cost of sales (92.1) - (92.1) (85.3) - (85.3) Gross profit 32.6 - 32.6 33.5 - 33.5 Gross profit % 26.1% - 26.1% 28.2% - 28.2% Operating expenses (28.7) - (28.7
Slide 21: Balance Sheet
Balance Sheet £m 31 May 31 May 2012 2013 Goodwill and acquisition intangibles 18.4 15.3 Property, plant & equipment and software intangibles 16.8 12.7 Interest in associate 0.3 - Other Receivables 1.9 1.9 Deferred tax assets 8.5 7.4 Total non-current assets 45.9 37.3 Inventories 20.3 17.0 Trade & ot
Slide 22: Cash Flow
Cash Flow 6 months to 6 months to Operating cash flows – £m 31 May 2012 31 May 2013 Profit from operations 1.1 5.4 Amortisation 0.7 0.4 Depreciation 3.2 1.8 Share-based payments 0.4 0.2 Other adjustments 2.1 0.3 Operating cash flows before movements in working capital 7.5 7.9 Increase in inventories
Slide 23: Operating Profit Bridge
Operating Profit Bridge 6 months to 31 May 2013 £m 23