Informa Plc · LSE:INF
Informa — Investor Day (June 2017)
130 slides from Informa's investor day presentation, Jun 15, 2017
Slide 1: Informa Investor Day 2017
2017 INFORMA INVESTOR DAY WWW.INFORMA.COM
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: Growth & Capability
STEPHEN A. CARTER GARETH WRIGHT GROUP CHIEF EXECUTIVE GROUP FINANCE DIRECTOR GROWTH & CAPABILITY INFORMA INVESTOR DAY: 15 JUNE 2017 3
Slide 4: 2017 Informa Investor Day: Agenda
2017 INFORMA INVESTOR DAY: AGENDA Stephen A. Carter Group Chief Executive Growth & Capability Gareth Wright Group Finance Director Patrick Martell The Journey To Growth CEO, Business Intelligence Opportunities From a Fully Integrated Penton Gary Nugent MD, Business Intelligence Lara Boro MD, Busines
Slide 5: Attractive International Markets
ATTRACTIVE INTERNATIONAL MARKETS The Knowledge and Information Economy International Platforms for Specialist Insight & Scholarly Research and Community Engagement Trade & Commerce Intelligence Academic Knowledge & Learning Platforms Globalisation of industries Overload of available Growth in intern
Slide 6: Informa Investor Day: November 2015
INFORMA INVESTOR DAY: NOVEMBER 2015 Growth Acceleration Plan: Progress to date Key Themes Focus on Academic Publishing (Taylor & Francis) and Global Exhibitions Academic Publishing: Content Depth and Operating Efficiency • The strength of Academic Journals • Focus and depth in Scholarly and Referenc
Slide 7: Academic Publishing: New Leadership, Annie Callanan
ACADEMIC PUBLISHING: TAYLOR & FRANCIS New Leadership: Annie Callanan • Experienced leader of information services and technology businesses • Track record of delivering operational improvement, innovation and shareholder value • Deep knowledge and expertise in digital platforms and technology • Curr
Slide 8: Academic Publishing: Trading on Track
ACADEMIC PUBLISHING: TRADING ON TRACK STRENGTH Strong renewals and consistent growth in Academic Journals CONSISTENT Solid performance in upper level scholarly research and reference-led Academic Books FOCUS No further deterioration in Lower Level textbooks; further focus through Garland disposal IN
Slide 9: Academic Publishing: Future Growth & Opportunities
ACADEMIC PUBLISHING: FUTURE GROWTH & OPPORTUNITIES +ive Robust Cash Underlying revenue growth Adjusted operating margins Consistently strong generation International Strength Open Expand presence and Consistent growth and strength in peer Continued expansion and innovation partnerships overseas revi
Slide 10: Annual Report 2014 quote
“ The goal is simple but demanding: to progressively return every part of our business to growth, and to simultaneously build the capabilities and platforms needed for future scale and consistent performance. Informa Annual Report ” 2014 INFORMA INVESTOR DAY 15 JUNE 2017
Slide 11: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN GAP AMBITION • Aggregate underlying growth of 3%+ GROWTH • Platform for sustainable future growth • All four Divisions in growth going into 2018 • Functional discipline and expertise CAPABILITY • Operational fitness • Capacity and capability for future scale INFORM
Slide 12: 2014-2017 Growth Acceleration Plan Framework
2014-2017 GROWTH ACCELERATION PLAN FRAMEWORK Growth Acceleration Plan (GAP) GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy INFORMA INVESTOR DAY: 15 JUNE 2017 12
Slide 13: Enhanced Capabilities Through GAP
ENHANCED CAPABILITIES THROUGH GAP OPERATIONAL FITNESS Divisional Operating Strengthened Senior M&A Focus Strengthened Finance Structure Management and Experience and Treasury 3-Year Planning Group and Divisional Communication Operating Metrics Discipline Strategy and Culture Strengthened Finance Cus
Slide 14: Enhanced Financial Capabilities Through GAP
ENHANCED FINANCIAL CAPABILITIES THROUGH GAP FINANCIAL FITNESS Upgraded Finance Relocation and expansion Strengthened Risk and Group Authority Systems of Treasury team Compliance Function Framework 3-Year Business Divisional Operating Forecasting Consistency Re-domicile to UK Planning Metrics and Rig
Slide 15: Investment for Growth
INVESTMENT FOR GROWTH GAP INVESTMENT FUTURE INVESTMENT Capex 3-5% of revenue c. £90m over three years (1-2% in GE/K&N; 4-5% in AP/BI) Catch-up investment Continuous reinvestment for growth Product refresh Product innovation Platform upgrade Platform enhancement Technology capacity Technology capabil
Slide 16: Enhanced Products and Platforms Through GAP
ENHANCED PRODUCTS AND PLATFORMS THROUGH GAP AP: Enhanced CRM AP: Researcher platform Lifecycle AP: Enhanced Content Scheduled Product/Platform releases AP: Research Management Networking AP: Unified Books and GE: Enhanced Journals Experience Customer Insights AP: Evidence-based AP: Analytics GE: Mar
Slide 17: Post-GAP Financial Framework
POST-GAP FINANCIAL FRAMEWORK 3%+ underlying revenue growth INFORMA GROUP Consistent margins over 30% Continuous re-investment for growth 5%+ underlying revenue growth GLOBAL EXHIBITIONS Market-leading margins 3%+ underlying revenue growth BUSINESS INTELLIGENCE Improving margins with growth Positive
Slide 18: Increased Balance and Breadth
INCREASED BALANCE AND BREADTH Revenue by type Revenue by geography Academic Scholarly/Reference Subscription ROW Books China Other Middle East Marketing Services 2016 2016 PF PF UK Attendee Continental Europe Americas Sponsorship Exhibitor Pre-booked / Recurring / Visible Revenue = 60%+ INFORMA INVE
Slide 19: Increased Balance and Breadth
INCREASED BALANCE AND BREADTH Business Intelligence Global Exhibitions Global Exhibitions Business Intelligence 2016 PF 2013 Knowledge & Networking Academic Knowledge & Publishing Networking Academic Publishing Revenue Revenue £1.1bn £1.7bn+ INFORMA INVESTOR DAY: 15 JUNE 2017 19 2016 charts are pro-
Slide 20: 2017 Informa Investor Day: Agenda
2017 INFORMA INVESTOR DAY: AGENDA Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director Patrick Martell The Journey To Growth CEO, Business Intelligence Opportunities From a Fully Integrated Penton Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate
Slide 21: Business Intelligence: The Journey to Growth
BUSINESS INTELLIGENCE: THE JOURNEY TO GROWTH SPEAKERS TOPIC Business Intelligence Patrick Martell CEO Business Intelligence The Journey to Growth Opportunities From a Fully Integrated Penton Pharma Lara Boro Group MD Business Intelligence Product and Platform Innovation Vertical Profile: Pharma Gary
Slide 22: The Market and Our Business
THE MARKET AND OUR BUSINESS MARKET CHARACTERISTICS OUR BUSINESS • Business data and information • Subscription-based revenue • Large and growing market • Organised around six end market verticals • Relatively fragmented • Narrow and deep niche focus • International with US bias • Strong brands in ni
Slide 23: Business Intelligence Snapshot
BUSINESS INTELLIGENCE SNAPSHOT Business Intelligence provides specialist data-driven intelligence and insight to businesses, helping them to make better decisions faster. £360M+ £75M+ 2000+ 250+ Revenue Adj. Op Colleagues Brands 1%+ 20-25% 150k+ 30k+ Underlying growth Group Revenue Active users Subs
Slide 24: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN Objective Organic revenue growth • Skills and capability investment (Sales, Product, Technology, Sector Specialists) • Restructure around market verticals • Focus on customer retention & subscription revenues • Invest in product, people & technology to drive new bu
Slide 25: Approach and Key Initiatives
APPROACH AND KEY INITIATIVES PROCESS KEY INITIATIVES Making it work Improved customer Focus on engagement Growth Acceleration Plan retaining existing & retention customers Investment Sales & in sales & New marketing marketing business alignment CUSTOMER Investment in products and platforms Ease of P
Slide 26: The Journey to Growth: Operational Fitness
THE JOURNEY TO GROWTH: OPERATIONAL FITNESS 2013 2017 • Archipelago of businesses • Market-facing verticals, focused portfolio • International business with growing US • UK-centric culture; underweight US footprint • Dated technology infrastructure • Refreshed platforms, cloud hosting • Underinvested
Slide 27: The Journey to Growth: Operating Metrics
THE JOURNEY TO GROWTH: OPERATING METRICS OPERATING METRIC 2013 2017 • Annualised Contract Values (ACV) • Falling • Rising • Value Renewal Rate • 70 - 75% • c. 90% • Pre-Expiry Renewal Rate • <40% • >70% • New Business Value Rate • Falling • Rising • Active users per month (subscriptions) • 138k • 17
Slide 28: Operating Structure: Organised Around End Markets
OPERATING STRUCTURE: ORGANISED AROUND END MARKETS BUSINESS INTELLIGENCE (Patrick Martell, CEO) AFI PTT Gary Nugent, Group MD Lara Boro, Group MD Industry & Agribusiness Financial Pharma Transportation TMT Infrastructure Intelligence Intelligence Intelligence Intelligence Intelligence Intelligence CO
Slide 29: Business Intelligence Growth Opportunity
BUSINESS INTELLIGENCE GROWTH OPPORTUNITY HELPING CUSTOMERS MAKE BETTER DECISIONS FASTER CORE REVENUE: Renewal rates New business SUBSCRIPTIONS New products (75%+ revenue) Enhanced platforms • Intelligence SUBSCRIPTIONS Customer service • Insight CONTINGENT REVENUES: MARKETING SERVICES (10%
Slide 30: Growth Opportunity: Consulting
GROWTH OPPORTUNITY: CONSULTING BUSINESS INTELLIGENCE CONSULTING Renewed focus and leadership Strengthens strategic relationships Incremental revenue opportunity Deepens customer insight INFORMA INVESTOR DAY 15 JUNE 2017 30
Slide 31: Opportunities From a Fully Integrated Penton
Opportunities From a Fully Integrated Penton Patrick Martell CEO Business Intelligence BUSINESS INTELLIGENCE 31
Slide 32: Penton Snapshot
PENTON SNAPSHOT Health & Nutrition Agriculture Transportation Design & Manufacturing Infrastructure TMT 190 Print Events Digital Infrastructure & TMT 23% 170 Design & Manufacturing 16% 150 130 Health & Nutrition 23% 110 Transportation 22% 90 Agriculture 16% 70 50 $m 2013 2016 INFORMA INVESTOR DAY 15
Slide 33: Full Combination with Informa
FULL COMBINATION WITH INFORMA INTEGRATION PLAN NET OPERATING SYNERGIES Management overlap DISCOVER • Complete Property consolidation Operational overlap INTEGRATE • Complete £14m net target by Procurement/Commissions 2018 • Final divisional allocations Functional Duplication COMBINE • Integrated rep
Slide 34: Full Combination with Business Intelligence
FULL COMBINATION WITH BUSINESS INTELLIGENCE STRONG BRANDS EFFECTIVE INTEGRATION Industry & Infrastructure • Smooth combination with relevant BI verticals ― Transportation ― Industry & Infrastructure • Updated management structure • Administrative functions aligned Transportation (HR, Finance, Ops) •
Slide 35: Benefits & Opportunities from a Full Combination
BENEFITS & OPPORTUNITIES FROM A FULL COMBINATION CONTENT Both specialist content and data businesses BRANDS Powerful combined portfolio of niche brands AUDIENCE Build, understand and monetise specialist audiences through content and brands SCALE Increased scale in verticals and across North America
Slide 36: Customer Focus & Sales Excellence
Customer Focus & Sales Excellence Gary Nugent Group MD, Business Intelligence BUSINESS INTELLIGENCE 36
Slide 37: Overview: Revenue by Type
OVERVIEW FINANCE AGRIBUSINESS INDUSTRY & INFRASTRUCTURE £100m+ revenue £25m+ revenue £50m+ revenue Revenue By Type 2016PF 2016PF 2016PF SALES & MARKETING Subscriptions / Marketing Services / Consulting / Other INFORMA INVESTOR DAY 15 JUNE 2017 Charts and numbers are pro-forma estimates, including a
Slide 38: Customer Focus & Sales Excellence
CUSTOMER FOCUS & SALES EXCELLENCE Are we doing what we said we would do? KPIs Is it having the desired effect? STRUCTURE From product to market and customer-centric coverage TALENT & INCENTIVES Incentives aligned to performance and growth CUSTOMER Selling is a team sport: Customer Engagement Program
Slide 39: Agribusiness Profile
Agribusiness Profile INFORMA INVESTOR DAY 15 JUNE 2017 39
Slide 40: Agribusiness Snapshot
AGRIBUSINESS SNAPSHOT AGRIBUSINESS MARKET CHARACTERISTICS OUR REVENUE MIX • Demand for more, better quality food on the rise • Supply & demand is global and volatile Subscriptions • Investment to optimise fragmented, opaque supply Marketing Services chains 2016PF Consulting • Investment in bio-chemi
Slide 41: Expert Intelligence Across the Value Chain
EXPERT INTELLIGENCE ACROSS THE VALUE CHAIN INFORMA INVESTOR DAY 15 JUNE 2017 41
Slide 42: Agribusiness: IEG Vantage GAP Illustration
AGRIBUSINESS: IEG VANTAGE GAP ILLUSTRATION PRODUCT CUSTOMERS • Deep analysis of market impacts affecting crops & • Broad appeal across the Agribusiness value chain, with livestock commodities focus on growth segments • Provides critical supply, demand, price & trade data and • Buyers, traders, analy
Slide 43: Agribusiness: GAP Enhancement
AGRIBUSINESS: GAP ENHANCEMENT • Fragmented • Unified vertical identity • Inconsistent • Connected and consistent through channels • Electronic • Digital • Poor customer experience • Enhanced customer experience INFORMA INVESTOR DAY 15 JUNE 2017 43
Slide 44: Product & Platform Innovation
Product & Platform Innovation Lara Boro Group MD Business Intelligence BUSINESS INTELLIGENCE 44
Slide 45: Overview: Revenue by Type
OVERVIEW PHARMA TRANSPORTATION TMT £100m+ revenue £55m+ revenue £30m+ revenue Revenue By Type 2016PF 2016PF 2016PF PRODUCT & PLATFORM STRATEGY Subscriptions / Marketing Services / Consulting / Other INFORMA INVESTOR DAY 15 JUNE 2017 Charts and numbers are pro-forma estimates, including a full year o
Slide 46: Customer First Product Management
CUSTOMER FIRST PRODUCT MANAGEMENT CAPABILITY Product Management Experts COMMON FRAMEWORK Pragmatic Marketing CUSTOMER FOCUS Outside-In Development Approach COMMERCIAL BUSINESS GAP Governance Framework CASES INNOVATION Technology, R&D Team, Partnership TRACKING AND Lead KPIs, Innovation Index MEASURE
Slide 47: Product Strategy and Architecture
PRODUCT STRATEGY AND ARCHITECTURE Consulting Maritime What should we do? Insight Value per customer Intelligence Lloyds List What will happen? Intelligence Insight Lloyds List What happened & why? Marketing Services Lloyds List Awards Help me reach my target market The Intelligence Ship owners, Ship
Slide 48: Pharma Profile
Pharma Profile INFORMA INVESTOR DAY 15 JUNE 2017 48
Slide 49: Pharma Snapshot
PHARMA SNAPSHOT PHARMA MARKET CHARACTERISTICS OUR REVENUE MIX • c.$12bn pharma information/solutions market • Global, highly regulated, yet dynamic Subscriptions • $60bn annual spend on R&D Marketing Services • High risk drug development: 2016PF Consulting ― $2.5bn cost Other ― 10-15 years to develo
Slide 50: Pharma: Customer Segmentation
PHARMA: CUSTOMER SEGMENTATION 4 CORE CUSTOMER GROUPS GEOGRAPHIC SPREAD OF CUSTOMERS Pharma & Biotech Companies Other 13% e.g. GlaxoSmithKline, Amgen China Israel 1% 2% Contract Research Denmark 2% Organisations France 5% e.g. Covance, Parexel US UK 54% 5% Switzerland Medtech Companies 6% e.g. Boston
Slide 51: Pharma: Product Strategy & Architecture
PHARMA: PRODUCT STRATEGY & ARCHITECTURE Consulting What should we do? Value per customer Intelligence What will happen? Insight What happened & why? Marketing Services Help me reach my target market Policy & Target Persona Clinical R&D Regulatory Commercial Medtech Customer volume INFORMA INVESTOR D
Slide 52: Pharma: Trialtrove Product & GAP Enhancement
PHARMA: TRIALTROVE PRODUCT & GAP ENHANCEMENT PRODUCT CUSTOMERS • Intelligence, data and analysis on completed and • GAP funded platform rebuild, developed in ongoing clinical trials conjunction with customers • Informs critical R&D strategy decisions • Enhanced capabilities preserve and extend • Mar
Slide 53: Pharma: GAP Investment
PHARMA: GAP INVESTMENT PHARMAPREMIA: MONETIZING OUR DRUG DATA FOR PREDICTIVE ANALYTICS Enables rapid evaluation of drug success rates and helps manage R&D portfolio risk across full range of pharma players for different disease trials INFORMA INVESTOR DAY 15 JUNE 2017 53
Slide 54: Marketing Services Opportunity
Marketing Services Opportunity Kate Spellman President, Marketing Services BUSINESS INTELLIGENCE 54
Slide 55: Business Intelligence Growth Opportunity
BUSINESS INTELLIGENCE GROWTH OPPORTUNITY HELPING CUSTOMERS MAKE BETTER DECISIONS FASTER CORE REVENUE: SUBSCRIPTIONS (75%+ revenue) • Intelligence SUBSCRIPTIONS • Insight CONTINGENT REVENUES: MARKETING SERVICES (10%+ revenue) • Content CUSTOMER • Audience • Brand CONSULTING MARKETING (5%+ revenue) CO
Slide 56: Our Approach
OUR APPROACH 1. Deepen and expand client relationships from traditional advertising to marketing campaigns built on audience reach 2. Leverage our brands and scale to develop advantaged capabilities versus competitors (audience knowledge) 3. Offer full capabilities to enable turnkey programs and mak
Slide 57: Product/Services Solutions for Marketing Revenue
PRODUCT/SERVICES SOLUTIONS FOR MARKETING REVENUE Advertising Content Marketing Events Ads are designed to drive Creating and distributing valuable, Event related marketing either engagement and awareness relevant content to attract, engage through the organisation of industry and retain a clearly-de
Slide 58: Case Study
CASE STUDY EXAMPLE: Large manufacturing company launching new product NEED: To fill sales pipeline Pipeline fulfillment ongoing Program DISCOVERY AWARENESS CONSIDERATION PURCHASE ADVOCACY Research Market need Advertising Webinars, White Papers Lead Nurturing Microsite & Audience target Broad Reach E
Slide 59: Our Advantage
OUR ADVANTAGE Niche audience Content Execution & market engagement expertise knowledge INFORMA INVESTOR DAY 15 JUNE 2017 59
Slide 60: Audience at the Center
AUDIENCE AT THE CENTER ENGAGEMENT PROCESS 5. 1. Modify/React Determine Audience (Vertical) 4. Analyse Behaviour 2. 3. Acquire Engage/Retain (Marketing Services) (Content) INFORMA INVESTOR DAY 15 JUNE 2017 60
Slide 61: Global Powerhouse of Brands with Deep Audience Relationships
Informa Marketing Services GLOBAL POWERHOUSE OF BRANDS WITH DEEP AUDIENCE RELATIONSHIPS
Slide 62: Marketing Services Potential at Informa
MARKETING SERVICES POTENTIAL AT INFORMA Incremental revenue opportunity from monetising existing B2B audiences and relationships: 2017 Academic 3-4x the B2B Publishing £500m+ revenue & audience base potential Informa £1.7bn+ 2016 B2B Audiences £1.2bn+ • Marketing Services >£30m • Total Penton Revenu
Slide 63: Future Growth & Opportunity
Future Growth & Opportunity Patrick Martell CEO Business Intelligence BUSINESS INTELLIGENCE 63
Slide 64: Fully Combined Informa and Penton
FULLY COMBINED INFORMA AND PENTON PROGRESS CONTRIBUTION OPPORTUNITIES • Integration ahead of plan • Strong niche brands • Informa subscription expertise • Synergies on track • Subscription assets • Scale in growth verticals • People & culture fit • Market leading events • Cross marketing of products
Slide 65: The Future Opportunity for Business Intelligence
THE FUTURE OPPORTUNITY FOR BUSINESS INTELLIGENCE 3%+ US Adjusted operating margins Consistent underlying revenue growth Further increase scale in largest market with higher growth Marketing Consulting Product Fully exploit Marketing Services Incremental revenue and strengthened Maintain consistent i
Slide 66: 2017 Informa Investor Day: Agenda
2017 INFORMA INVESTOR DAY: AGENDA Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins Simplify, Foc
Slide 67: Knowledge & Networking: Simplify, Focus, Grow
KNOWLEDGE & NETWORKING: SIMPLIFY, FOCUS, GROW SPEAKERS TOPIC Andrew Mullins Knowledge & Networking CEO Knowledge & Networking Simplify, Focus, Grow Anna Chrisman Vertical profile MD Life Sciences Life Sciences Carolyn Dawson Vertical profile MD TMT TMT INFORMA INVESTOR DAY 15 JUNE 2017 67
Slide 68: Operating Structure: Organised Around Verticals
OPERATING STRUCTURE: ORGANISED AROUND VERTICALS LIFE TMT GLOBAL SSME SCIENCES FINANCE DIVISIONAL CEO Andrew Mullins DIVISIONAL CHIEF REVENUE CHIEF PRODUCT & MD LIFE MD MD GLOBAL MD SPECIALIST CFO OFFICER TALENT OFFICER SCIENCES TMT FINANCE EVENTS Carl Barnes Matt Harrison Jeremy Davies Anna Chrisman
Slide 69: The Market and Our Business
THE MARKET AND OUR BUSINESS MARKET CHARACTERISTICS OUR BUSINESS • Face-to-Face • Organised around Verticals: TMT, Life Sciences, Global Finance + SSMEs • Content-driven events • Refocused on High Impact Event Brands • Large, diverse and competitive market • Community engagement model • International
Slide 70: Knowledge & Networking Snapshot
KNOWLEDGE & NETWORKING SNAPSHOT The Knowledge & Networking Division organises content-driven events and programmes that provide a platform for communities to meet, network and share knowledge. £250M+ £40M+ c.1200 150k+ Revenue Adj. Op Events Delegates -4% 10-15% 60 1000+ Organic growth in 2016 Group
Slide 71: Simplify, Focus, Grow: Historical Distributed Portfolio
SIMPLIFY, FOCUS, GROW: HISTORICAL DISTRIBUTED PORTFOLIO OM (%) IBC South Africa ITM IIR Boston IBC ICBI EBD UK Life Infoline Sciences Trade & Energy OBJECTIVE: Dubai Simplify and organise around verticals Tax & Maritime, Energy Accounting & Agra IIR New York IBC Singapore Euroforum WPA Eindhoven Eur
Slide 72: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN APPROACH KEY INITIATIVES Making it work Reorganise around Growth Acceleration Plan verticals Simplify Portfolio Management Sales Effectiveness Focus Grow Digital capability INFORMA INVESTOR DAY 15 JUNE 2017 72
Slide 73: Focus, Simplify, Grow: Operational Fitness
FOCUS, SIMPLIFY, GROW: OPERATIONAL FITNESS 2013 2017 • Archipelago of businesses • Single business organised around verticals • Multiple verticals, multiple languages and • Focus on key verticals with three main multiple geographies operational hubs (US, Europe, Dubai) • Multiple, separate P&Ls • On
Slide 74: Organise Around Verticals
ORGANISE AROUND VERTICALS OM (%) Life Global Sciences Finance Specialist Subject Matter Events TMT Revenue (£m) INFORMA INVESTOR DAY 15 JUNE 2017 74
Slide 75: Portfolio Improvement
PORTFOLIO IMPROVEMENT • Focus on high impact event brands – cut in volume output from 12,000+ events per year to <1000 12000 • Targeted exit from regional domestic conference No of Events businesses: ― Spain 10000 ― Portugal ― South Africa 8000 ― Netherlands – Amsterdam ― Netherlands - Eindhoven 600
Slide 76: Focus on High Impact Event Brands in Verticals
Inside ETFs US Finovate Europe SuperReturn International Finovate Spring GAIM Ops Cayman FundForum Internaitonal Global Finance Finovate Fall SuperReturn Asia INFORMA INVESTOR DAY 15 JUNE 2017 SuperInvestor RiskMinds International BioTech Showcase East/West CEO Conference BioEurope Spring Top 30 Eve
Slide 77: Sales Effectiveness and Digital Capability
SALES EFFECTIVENESS AND DIGITAL CAPABILITY SALES EFFECTIVENESS DIGITAL CAPABILITY • Commercial directors and key accounts • Year round customer engagement • New remuneration structure – rewarding short and • Enhanced digital experience with online payment medium term performance capability • Custome
Slide 78: From Transaction to Community Engagement Model
FROM TRANSACTION TO COMMUNITY ENGAGEMENT MODEL 2014 2017 + Customer & F2F Digital Products Audience Need Products • Digital Training • Public Training BUY LEARN SELL INFORM LEARNING & • eNewsletters • Onsite Training SHARING • White Papers • SME Speakers (Insight Gathering) • Blogs/Vlogs • Workshops
Slide 79: The New Knowledge & Networking Division
THE NEW KNOWLEDGE & NETWORKING DIVISION FEATURES OF OUR FEATURES OF OUR MULTIPLE REVENUE VERTICALS BUSINESS STREAMS Growth Community brands Delegates International Specialist content Sponsors & exhibitors Technology Relationships Partnering Innovation Partnering Presenter/demo Sub-communities High e
Slide 80: Global Finance Vertical Snapshot
GLOBAL FINANCE VERTICAL SNAPSHOT FINANCE VERTICAL CHARACTERISTICS REVENUE MIX • Large and growing • International financial markets Attendee Sponsorship • Defined, niche communities 2016 Exhibitor • Technology disruption Other • Product innovation KEY BRANDS GEOGRAPHIC FOOTPRINT GLOBAL FINANCE UK No
Slide 81: Life Sciences Vertical
Life Sciences Vertical Anna Chrisman MD Life Sciences
Slide 82: Life Sciences Snapshot
LIFE SCIENCES SNAPSHOT LIFE SCIENCES VERTICAL CHARACTERISTICS REVENUE MIX • Rising global healthcare investment • Scientific progress and discovery Attendee Sponsorship • Defined niche communities 2016 Exhibitor • Investment in R&D and innovation Other • Collaboration, knowledge exchange and open so
Slide 83: Life Sciences: Categories and Brands
LIFE SCIENCES: CATEGORIES AND BRANDS BBC EBD Emerging Biopharma Clinical Science Processing INFORMA INVESTOR DAY 15 JUNE 2017 83
Slide 84: Partnering Profile
PROFILE 7 $20M+ International brands Revenue 50K+ Meetings 34K+ 16K+ Attendees Companies • Attractive vertical – Biotech growth • Unique model – lead generation through Partnering • Effective, targeted and valuable networking • PartneringOne proprietary software platform • Very high retention rates
Slide 85: Value Through Partnering
VALUE THROUGH PARTNERING “ …the best opportunity to meet people and expand the network creating new relationships… …one of the essential events to attend, Partnering is the way to go… Companies with a certain One of the maturity need to certainties of my attend… calendar… ” Perfect networking opport
Slide 86: Festivals: Biotech Week Boston
FESTIVALS: BIOTECH WEEK BOSTON Monday Tuesday Wednesday Thursday Host Event/Activity Sept. 25 Sept. 26 Sept. 27 Sept. 28 KEY FACTS BioProcess International Conference & • 4500 attendees Exhibition Cell & Gene Therapy Bioprocessing & • Scientists, investors, Commercialization technologists and Viral
Slide 87: TMT Vertical
TMT Vertical Carolyn Dawson MD TMT
Slide 88: TMT Snapshot
TMT SNAPSHOT TMT VERTICAL CHARACTERISTICS REVENUE MIX • Growing global industry • Defined niche communities Attendee Sponsorship • Technology convergence and change 2016 Exhibitor • Internet of Things growth Advertising • High levels of innovation KEY BRANDS GEOGRAPHIC FOOTPRINT UK North America TMT
Slide 89: TMT Vertical: Categories and Brands
TMT VERTICAL: CATEGORIES AND BRANDS Traditional High-growth, large-scale telecoms events events focused on new tech Telco Networks Broadband Media Critical London Connecting Cloud Connected 5G Tech MVNO & Services & Optical Networks Comms. Tech Week Africa & Enterprise Innovation YEAR-ROUND DIGITAL
Slide 90: New Launches: Internet of Things World
NEW LAUNCHES: INTERNET OF THINGS WORLD WORLD’S LARGEST IoT audience DIGITAL REACH • 25,000+ attendees • 18 events • In 8 countries • Database of 23M+ IN-PERSON • 12 verticals / industries EVENTS • 15,000+ IoT leads produced for clients in 2016 INFORMA INVESTOR DAY 15 JUNE 2017 90
Slide 91: IoT Brand Portfolio
IoT BRAND PORTFOLIO INFORMA INVESTOR DAY 15 JUNE 2017 91
Slide 92: Festivals: London Tech Week Profile
FESTIVALS: LONDON TECH WEEK PROFILE Monday Tuesday Wednesday Thursday Friday Opening Ceremony 200+ Crowd Sourced events across the city LeadersIn Tech Summit VRAR: Connected Cars: IoT Europe: 5G: TechXRL8 Cloud & DevOps: Apps World: Kairos: AI Summit London Tech Week Academy DRL Drone Racing Prince’
Slide 93: Future Growth & Opportunities
Future Growth & Opportunities Andrew Mullins CEO Knowledge & Networking
Slide 94: Future Growth & Opportunities
FUTURE GROWTH & OPPORTUNITIES Steady Focus Underlying revenue growth Adjusted Operating Margin Strengthen core vertical positions Customer Network Data Broaden and deepen relationships Maximise networking and partnering Actionable insights from data capability Digital Multiple X-Div Community engage
Slide 95: International Expansion
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE INTERNATIONAL EXPANSION INFORMA INVESTOR DAY: 15 JUNE 2017 95
Slide 96: International Expansion Through Targeted M&A
INTERNATIONAL EXPANSION THROUGH TARGETED M&A GAP ACQUISITION STRATEGY • US Exhibitions focus • Focus on quality of assets, strategic fit • International scale in verticals • Target growth regions and verticals Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Es
Slide 97: Geographic Balance and Breadth
GEOGRAPHIC BALANCE AND BREADTH Revenue by geography ROW China Middle East ROW Americas China UK 2016 PF Middle East 2013 UK Continental Americas Europe Continental Europe Revenue Revenue £1.1bn £1.7bn+ INFORMA INVESTOR DAY: 15 JUNE 2017 97 2016 charts are pro-forma estimates, including a full year o
Slide 98: Group's North American Balance and Breadth
Update figures? GROUP’S NORTH AMERICAN BALANCE AND BREADTH $1.1bn+ revenue $340m+ $350m+ $350m+ COUNTRY HQ AP revenue GE revenue BI revenue VERTICALS 3000+ 80+ 50%+ 60%+ CONTENT Colleagues exhibitions Group sales Group profit SHARED SERVICES INFORMA INVESTOR DAY: 15 JUNE 2017 98
Slide 99: 2017 Informa Investor Day: Agenda
2017 INFORMA INVESTOR DAY: AGENDA Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins CEO, Knowledg
Slide 100: Global Exhibitions: Expansion, Growth and Scale
GLOBAL EXHIBITONS: EXPANSION, GROWTH AND SCALE SPEAKERS TOPIC Charlie McCurdy Global Exhibitions CEO Global Exhibitions International Expansion, Growth and Scale Fred Linder Vertical Profile MD Global Health & Nutrition Network Health & Nutrition INFORMA INVESTOR DAY 15 JUNE 2017 100
Slide 101: The Market and Our Business
THE MARKET AND OUR BUSINESS MARKET CHARACTERISTICS OUR BUSINESS • Face-to-Face • The Challenger Operator • Transaction-driven events • Top 3 organiser globally • Fragmented • 14 of TSNN Top 250 US Exhibitions (excludes Agriculture and International Yachting Exhibitions) • International • Revenue vis
Slide 102: Global Exhibitions Snapshot
GLOBAL EXHIBITIONS SNAPSHOT The Global Exhibitions Division organises transaction-oriented Trade Shows and Exhibitions around the world, enabling specialist communities to meet face to face and conduct business. £500M+ £180M+ c.200 1.9M SQM+ Revenue Adj. Op Brands Exhibition Space 5%+ c.30% 1100+ c.
Slide 103: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN Accelerate and scale a small collection of independent Objective exhibitions into a top-performing, global Market Maker • Identify attractive, growing global vertical markets • Expand internationally, led by the US, through targeted acquisition programme • Strength
Slide 104: International Expansion, Growth and Scale
INTERNATIONAL EXPANSION, GROWTH AND SCALE APPROACH KEY INITIATIVES Making it work International expansion Growth Acceleration Plan programme Expand Build/ strength in Verticals Market maker Sales, Customer & Marketing Excellence Data Scale Revenue+: Market Maker strategy INFORMA INVESTOR DAY 15 JUNE
Slide 105: International Expansion, Growth and Scale
INTERNATIONAL EXPANSION, GROWTH AND SCALE BUILD BUY VOLUME CROSS-SELL CONSTRUCTION NUTRITION Product innovation, International scale Hanley Wood Virgo Publishing, new customers within verticals Exhibitions, Penton (New Hope Dwell-on-Design Network) PRICING LAUNCH LIFE SCIENCES AGRICULTURE Tiered and
Slide 106: International Expansion: The Challenger Operator
INTERNATIONAL EXPANSION: THE CHALLENGER OPERATOR GROWTH IN GLOBAL EXHIBITIONS REVENUE Americas Exhibitions business ROW in 2009 Middle East • <$100m revenue • <1% in Americas Global Exhibitions Division in 2017 • >$600m revenue • >60% in Americas 2009 2017 INFORMA INVESTOR DAY 15 JUNE 2017 106
Slide 107: From Exhibition Organiser to Market Maker
FROM EXHIBITION ORGANISER TO MARKET MAKER Leverage customer relationships and data/digital capabilities to connect buyers and sellers in new and more powerful ways FOR ATTENDEES FOR EXHIBITORS FOR INFORMA • Search & Discover products and • Year-round quality lead generator • Data to understand atten
Slide 108: Operational Initiatives: Customer Value Opportunity
OPERATIONAL INITIATIVES: CUSTOMER VALUE OPPORTUNITY TYPICAL COST/INCOME MIX EXHIBITOR VALUE DRIVERS TRANSACTIONS & LEADS Raw space rent Stand costs Staff travel, Number and quality of visitors to stand EXHIBITOR accommodation and food Other VALUE DRIVERS • Matchmaking • Stand location • Community co
Slide 109: Operational Initiatives: Customer Value Opportunity
OPERATIONAL INITIATIVES: CUSTOMER VALUE OPPORTUNITY THE INTERNATIONAL SURFACE EVENT (TISE) CASE STUDY • Exhibitions typically have a cost-based approach with early- bird, volume and corner variations to list price • New pricing approach for TISE 2018 ― Dynamic, value-based options introduced ― Packa
Slide 110: Operational Initiatives: Product Innovation
OPERATIONAL INITIATIVES: PRODUCT INNOVATION DRIVING GROWTH THROUGH BRAND EXPANSION • Leading Healthcare Exhibition in • A section of Arab Health focused on Middle East laboratory equipment • World Trade Center approaching • Strong brand in its own right with a full capacity defined community • Ongoi
Slide 111: From Exhibition Organiser to Market Maker
FROM EXHIBITION ORGANISER TO MARKET MAKER INFORMA INVESTOR DAY 15 JUNE 2017 111
Slide 112: International Expansion: Operational Hubs
INTERNATIONAL EXPANSION: OPERATIONAL HUBS London Toronto Boulder Shanghai Dallas Dubai Sao Paolo INFORMA INVESTOR DAY 15 JUNE 2017 112
Slide 113: Full Combination of Penton and Global Exhibitions
FULL COMBINATION OF PENTON AND GLOBAL EXHIBITIONS STRONG PENTON COMPLEMENTARY EFFECTIVE COMBINATION BRANDS INFORMA BRANDS • AGRICULTURE Smooth integration into GE ― Agriculture ― Health & Nutrition NUTRITION HEALTH & ― Waste ― Aviation • SUSTAINABILIT Updated management structure Y & WASTE • Adminis
Slide 114: Benefits and Opportunities from a Full Combination
BENEFITS AND OPPORTUNITIES FROM A FULL COMBINATION Leverage relationships within Verticals and internationally CROSS SELLING eg Agriculture, Health & Nutrition GEO-CLONING Extend select Penton brands internationally OPERATIONS Efficiencies from duplication, shared services and Exhibitions services C
Slide 115: Focus on Select, Attractive Growth Verticals
FOCUS ON SELECT, ATTRACTIVE GROWTH VERTICALS THE FEATURES OF ATTRACTIVE VERTICALS IN EXHIBITIONS INNOVATION FRAGMENTED HIGH VALUE INTERNATIONAL GROWING Construction & Life Sciences Agriculture International Yachting Health & Nutrition Real Estate Strength in US, Strength in US, Strength in US Streng
Slide 116: Health & Nutrition Vertical
Health & Nutrition Vertical Fred Linder MD Global Health & Nutrition Network
Slide 117: Health & Nutrition Vertical Snapshot
HEALTH & NUTRITION VERTICAL SNAPSHOT HEALTH & NUTRITION VERTICAL REVENUE MIX • B2B • Global Exhibitor Attendee • Fragmented Digital • Growth Other • Regulation, policy and health drivers KEY BRANDS GEOGRAPHIC FOOTPRINT North America Europe Asia INFORMA INVESTOR DAY 15 JUNE 2017 117
Slide 118: The Market: Tipping Point into the Mainstream
THE MARKET: TIPPING POINT INTO THE MAINSTREAM GLOBAL HEALTH & NUTRITION MARKET GROWTH DRIVERS INGREDIENTS FINISHED PRODUCTS FRAGMENTATION Highly fragmented supply chain • Pre and probiotics • Functional foods & • Vitamins & minerals beverages • Proteins & amino acids • Natural foods & beverages • No
Slide 119: Global Health & Nutrition Network
GLOBAL HEALTH & NUTRITION NETWORK $110m+ 10%+ 9 125k+ 170k+ revenue growth major brands SQM exhibition space attendees US FINISHED GOODS Las Vegas Geneva Los Angeles Baltimore New Jersey Anaheim EUROPE/ASIA Austin Guangzhou US INGREDIENTS INGREDIENTS Singapore UNIQUE POSITION ACROSS THE INTERNATIONA
Slide 120: Growth and Opportunities
GROWTH AND OPPORTUNITIES 1. Maintain positive momentum and growth across all brands 2. Full combination of Informa and Penton brands with unified leadership across three hubs Further increase scale to address the full industry value chain and deliver solutions to 3. customers on a global basis Lever
Slide 121: Spotlight on Natural Products Expo West
SPOTLIGHT ON NATURAL PRODUCTS EXPO WEST Education & Anaheim networking NEXTY awards Annual over 5 days 500+ new 40,000+ sqm exhibitors in 2017 2,600+ exhibitors 80,000+ attendees LARGEST INDIVIDUAL BRAND IN HEALTH & NUTRITION MARKET INFORMA INVESTOR DAY 15 JUNE 2017 121
Slide 122: Spotlight on Natural Products Expo West
SPOTLIGHT ON NATURAL PRODUCTS EXPO WEST INFORMA INVESTOR DAY 15 JUNE 2017 122
Slide 123: Future Growth & Opportunities
Future Growth & Opportunities Charlie McCurdy CEO Global Exhibitions
Slide 124: Future Growth and Opportunities
FUTURE GROWTH AND OPPORTUNITIES 5%+ Market leading Cash Consistent underlying revenue growth Adjusted operating margins Consistently strong profit conversion International Scale Verticals Further balance and breadth Fully leverage size benefits Build further focused scale Consolidator Combine Digita
Slide 125: 2017 Informa Investor Day: Agenda
2017 INFORMA INVESTOR DAY: AGENDA Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins CEO, Knowledg
Slide 126: Future Growth & Opportunity
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE FUTURE GROWTH & OPPORTUNITY INFORMA INVESTOR DAY: 15 JUNE 2017 126
Slide 127: 2014-2017 Growth Acceleration Plan
2014-2017 GROWTH ACCELERATION PLAN GAP AMBITION • Aggregate underlying growth of 3%+ GROWTH • Platform for sustainable future growth • All four Divisions in growth going into 2018 • Functional discipline and expertise CAPABILITY • Operational fitness • Capacity and capability for future scale INFORM
Slide 128: Divisional GAP Focus
DIVISIONAL GAP FOCUS Global Exhibitions Business Intelligence • Separation • Management • Expansion • Portfolio • Data • Performance Academic Publishing Knowledge & Networking • Stability • Simplification • Technology • Focus • Handover • Verticals INFORMA INVESTOR DAY: 15 JUNE 2017 128
Slide 129: Divisional GAP Delivery
DIVISIONAL GAP DELIVERY Global Exhibitions Business Intelligence • Growth & Scale • Consistent growth • Balance & Breadth • Repeat revenue • Market Maker • Upsell Academic Publishing Knowledge & Networking • Resilient growth • Growth • Steady margins • Profitability • Strong cash flow • Community en
Slide 130: Q&A
Stephen A. Carter Patrick Martell Group Chief Executive CEO Business Intelligence Gareth Wright Lara Boro Group Finance Director Group MD Business Intelligence Richard Menzies-Gow Gary Nugent Director of IR, Communications & Brand Group MD Business Intelligence Alex Roth Kate Spellman Director of St