Slide 1: 2022 Interim Results
2022 Interim Results 18 May 2022 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Future plc (the “Company”) and its subsidiaries (togeth
Slide 3: Highlights
Highlights 3
Slide 4: Strong financial and operational results
Reported revenue growth of 48% supported by +4% Continued organic organic revenue growth (average of H1 2021 and H1 2022 growth +13%), driven by digital advertising (+10%) and the US (+6%) Strong financial and operational Strong operating leverage (operating profit margin +1ppt on FY 2021), despite in
Slide 5: Financial Review
inancial © eview b FuTURE
Slide 6: Record results: financial highlights for the six months to March 2022
Record results: financial highlights for the 6 months to 31 March 2022 Revenue Adj. Operating Adj. Free Cash £404.3m profit £134.5m Flow £137.8m +48% +51% 102% conversion Adj. Operating Adj. diluted Net debt Margin 33% EPS 81.3p £388.7m +1ppt +24% 1.46x vs FY2021 Leverage 6 See appendix for definitions
Slide 7: Adding another set of strong results to our track record
Adding another set of strong results to our track record +54% CAGR +135% CAGR +79% CAGR +110% CAGR 7 See appendix for definitions
Slide 8: Continued momentum driving continued strong profit growth and margin
Continued momentum driving continued strong profit growth and margin £m HY 2022 % revenue HY 2021 % revenue YoY Var Revenue 404.3 100% 272.6 100% +48% 1 Gross contribution 302.9 75% 213.0 78% +42% Sales, marketing and editorial2 (106.5) 26% (70.7) 26% +51% Admin costs & other overheads (51.2) 13% (45
Slide 9: Revenue: reported growth underpinned by continued organic growth
Revenue: reported growth underpinned by continued organic growth HY 2022 Reported Organic 2 half year Gross Gross Media revenues continue to deliver with Revenue average contribution £m growth growth organic growth contribution% change (ppt) organic growth of 5% on top of the exceptional revenue gro
Slide 10: Revenue performance - diversification provides resilience
Revenue performance - diversification provides resilience DIGITAL ADVERTISING AFFILIATES MAGAZINES A high-value, intent-led audience drives Performance impacted by comparators - A changing landscape with further diversified advertising yield - organic growth +10% organic decline 10% high-quality reven
Slide 11: Driving profitable growth by design
Driving profitable growth by design Continuous improvement in profitability is supported by the platform effect: REVENUE MIX ONGOING INVESTMENT SCALABLE BUSINESS MODEL Revenue by division as a % of revenue Sales, marketing and editorial costs % Overhead costs as a % of revenue of revenue* Higher margi
Slide 12: Operating model drives continued strong margin
Operating model drives continued strong margin Continued strong operating margin, despite dilution Inflation on costs (salaries and wages as ppt Cost impact £m well as print and paper costs) representing (1)ppt dilution. Looking into H2, we expect HY 2021 AOP margin 33% this to accentuate but the pla
Slide 13: Cash flow demonstrating strong conversion of profits
Cash flow demonstrating strong conversion of profits £m HY 2022 HY 2021 Adjusted cash generated before changes Adjusted free cash flow up +47% yoy to in working capital and provisions1 146.0 98.1 £137.8m, translating to adjusted free Adjusted movement in working capital cashflow of 102% of adjusted oper
Slide 14: Consistent strong cash generation provides balance sheet strength
Consistent strong cash generation provides balance sheet strength ● Net debt was £388.7m following the acquisition of Dennis with over £120m headroom on available facilities which were increased by a further £100m in May 2022. Total facilities of £690m. Net Debt Bridge 1.88 Below 1.8 leverage levera
Slide 15: Repeatable efficient value creation cycle and capital allocation priorities
Repeatable efficient value creation cycle accelerated by effective capital allocation 01 ● Audience growth REVENUE GROWTH ● New monetisation routes ● Revenue mix 02 OPERATING MARGIN GROWTH ● ● Scalable business model Platform Effect Repeatable efficient value creation model with strong track record 03
Slide 16: Current trading and Outlook
Current trading and Outlook ● Current trading in line with expectations gives confidence for the FY ● 50% of FY consensus AOP delivered in H1 ● Organic audience return to growth in April ● Modest increase in FY guidance ○ Contribution from WhoWhatWear acquisition ○ Includes absorption of incremental
Slide 17: Strategy & Business Update
Strategy & Business Update 17
Slide 18: A proven strategy
A proven strategy OBJECTIVES Grow audience / verticals Focus on the US Organic growth Grow monetisation Leverage leadership positions Operating margin growth ENABLERS Strong FCF conversion Proprietary Expert Matrix technology content organisation 18
Slide 19: Strong track record underpinned by three pillars
Strong track record underpins by three pillars provides confidence for further growth Average sustainable target DRIVING +10% ORGANIC GROWTH 2020-2022 CAGR 2016-2022 CAGR Revenue +67% +54% THE PLATFORM +5% EFFECT AOP +84% +135% Adjusted FCF +86% +110% CREATING VALUE THROUGH ACQUISITIONS +10% CONSISTE
Slide 20: Driving Organic Growth
Driving Organic Growth 20
Slide 21: A global audience and reach with three main revenue streams
A global audience and reach with three main revenue streams 442m Total audience reach* AFFILIATE PERFORMANCE MARKETING ADVERTISING (on our websites, on social platform, email newsletters or magazines) +5% YoY vs HY 2021 (products and services) 306m Online users** HY 2022 Revenue mix (10)% organic Yo
Slide 22: Grow audience/verticals
GROW AUDIENCE/ VERTICALS With further opportunities across verticals and leadership in US ● STEP 1: Grow audience ● STEP 2: Once sufficient scale, add direct sales team ● STEP 3: Drive premium advertising and leverage the platform CONTENT % GROUP ONLINE USERS* COMSCORE** AMBITION MONETISATION OUTCOME
Slide 23: Digital advertising - driving opportunities in premiumisation
Grow monetisation Digital advertising - driving opportunities in premiumisation Using rich first-party data to create valuable audience segments for The digital advertising revenue is an equation of advertisers volume (online users as a proxy for impressions) and price (yield): REVENUE = VOLUME X YIE
Slide 24: Affiliates - driving opportunities through diversification
Grow monetisation Affiliates - driving opportunities through diversification DRIVING DIVERSIFICATION AND GROWTH Content Vertical Revenue Mix Increased HY 2018 HY 2022 by 20x to £21m TECH & GAMING OTHER VERTICALS GOCO Product Categories Continued growth in older verticals through new products such as s
Slide 25: Consumer direct monetisation - leveraging loyal audiences
Grow monetisation Consumer direct monetisation - leveraging loyal audiences Attractive business characteristics with growth opportunities ● Reach of nearly 6m* ● Represent c.50% of magazines revenue ● Enriches Aperture with rich first-party data ● Growth opportunities including The Week Junior US mov
Slide 26: The Platform Effect
The Platform Effect 26
Slide 27: The platform effect
The platform effect Proprietary The platform effect is more Technology than operating leverage and growing the bottom line, it is about the multiplier effect of the organic and The Platform inorganic capabilities that Centres of Effect Content deliver unique value creation, Excellence both top and b
Slide 28: Proprietary technology - the one platform approach
Proprietary technology - the one platform approach to maximise investment and returns Continued investment in our technology stack benefits the entire Future estate, driving operational leverage Safe, fast, brand friendly website platform (Vanilla) Ad tech stack (Hybrid) provides yield optimisation U
Slide 29: Creating content that drives value
Creating content that drives value Editorial is our biggest investment. Our editorial expertise is key to our success: ● Expert content drives loyal audience with low cost of acquisition ● Content produced in prior years continues to generate revenue in future years ● This library of evergreen conte
Slide 30: Creating value through acquisitions
Creating value through acquisitions 30
Slide 31: Acquisitions to accelerate the strategy
Acquisitions to accelerate the strategy 11x Average multiple paid since 2016 (including WhoWhatWear) 4 acquisitions since the start of the financial year allocating over £400m of capital Wealth content Subscription capabilities Data predictive analytic capabilities Gaming & entertainment content, Vid
Slide 32: Dennis update on cost and revenue synergies
Dennis update on cost and revenue synergies Dennis was acquired on 1 October 2021. The integration is now complete with great progress on cost and revenue synergies Key strategic initiatives GROW AUDIENCE/ VERTICALS Grow monetisation Content - The Wealth Bureau Tech stack 01 Cost synergies of £8m ●
Slide 33: WhoWhatWear key strategic initiatives
WhoWhatWear KEY STRATEGIC INITIATIVES 01 Expand reach in the US: now #6 for Fashion and Beauty on ComScore 02 Improve digital advertising monetisation across the vertical through direct sales with existing relationships 03 Improve affiliate monetisation using our proprietary tech stack 04 Leverage Wh
Slide 34: Our Future, Our Responsibility
A sustainable business delivering values for all our stakeholders Our Future, Our Responsibility 34
Slide 35: HY 2022 initiatives demonstrate progress on strategy - Foundations
HY 2022 initiatives demonstrate progress on strategy - FOUNDATIONS FUTURE FOUNDATION The culture Taking behind the responsibility company Great content Going further to emerges from a deliver a great culture sustainable, transparent & well governed business We look after our people to foster a stron
Slide 36: HY 2022 initiatives demonstrate progress on strategy - Differentiators
HY 2022 initiatives demonstrate progress on strategy - DIFFERENTIATORS FUTURE DIFFERENTIATION Expanding Shaping the horizons future Connecting Leading people with their conversations on passions and the future of the facilitating internet and lifelong learning publishing We are using our content to
Slide 37: Summary & Outlook
Summary & Outlook 37
Slide 38: Summary & Outlook
Summary & Outlook Excellent set of results, adding to our track record with further opportunities, notably in the US Continue to accelerate the strategy with acquisitions: ● Dennis integration completed ● Waive and WhatCulture completed ● WhoWhatWear announced with completion next month A modest upg
Slide 39: Q&A
Q&A 39
Slide 40: Appendix
Appendix 40
Slide 41: Our ESG ambitions to 2026
Our Future, Our Responsibility Our ESG ambitions to 2026, building a more sustainable future for our communities and planet FUTURE DIFFERENTIATION FUTURE FOUNDATION The culture Expanding Shaping the Taking behind the horizons future responsibility company Connecting people with Leading conversations
Slide 42: ESG - External ratings & accreditation
ESG - External ratings & accreditation Internal disclosures Gender diversity: ● All employees 49% ● Board 44% Gender pay gap: ● Mean 3.85% (2020: 8.05%) ● Median 7.75% (2020: 9.91%) Carbon intensity ratio: 0.8 (29% lower than the prior year) External ratings ● MSCI A - April 2021 (report date March
Slide 43: Delivering diversified revenue streams through the specialist media platform
Delivering diversified revenue streams through the specialist media platform Affiliate Advertising (products and (on our websites, on social services) platform, email newsletters or magazines) HY 2022 Revenue mix Direct Consumer Monetisation (Newsstand magazine HY 2022 Verticals sales, subscriptions)
Slide 44: Online users and algo updates
Online users and algo updates 306m online users* HY 2022 Online Audience by Territory 44 *Online users are taken from Google Analytics. Unless otherwise stated, online users are monthly and the monthly average across the year
Slide 45: Audience - Top reported brands online users
Audience1 - Top 10 reported brands online users Top 10 reported brands HY 2022 Yoy HY 2021 CAGR 2019-2022 CAGR 2020-2022 millions growth TechRadar 34.0 (28)% 47.4 +3% (10)% Toms Guide 28.0 +1% 27.7 +23% +28% CinemaBlend 25.2 +5% 24.1 - - LiveScience 20.8 (12)% 23.7 +5% (22)% PC Gamer 19.9 (18)% 24.4
Slide 46: Media: organic growth driven by digital ads and recovery in events
Media: organic growth driven by digital ads and recovery in events HY 2022 HY 2021 Reported Organic growth growth 2-year £m £m HY HY average Digital advertising 108.1 91.4 +18% +10% +18% Affiliates 138.8 85.2 +63% (10)% +23% Events, digital licensing, 11.7 6.0 +95% +86% +15% other online Media revenu
Slide 47: Revenue breakdown by divisions
Revenue breakdown by divisions HALF YEAR HY 2022 HY 2021 Reported Organic growth growth UK US Total UK US Total £m £m £m £m £m £m Digital advertising 33.2 74.9 108.1 29.6 61.8 91.4 +18% +10% Affiliates 96.5 42.3 138.8 41.3 43.9 85.2 +63% (10)% Events and other media 8.9 2.8 11.7 4.4 1.6 6.0 +95% +86%
Slide 48: Exceptional costs reflecting the impact of value creative acquisitions
Exceptional costs reflecting the impact of value creative acquisitions £m HY 2022 HY 2021 YoY Var Adjusted operating profit 134.5 89.2 +51% Exceptional costs largely relate to the Dennis acquisition and integration as well as Share based payments (3.7) (2.7) +37% onerous properties costs partly reflect
Slide 49: Acquisitions framework
Acquisitions framework TACTICAL STRATEGIC TRANSFORMATIONAL AREAS OF INTEREST Audience CONTENT EXISTING NEW/EXISTING NEW characteristics for area of interest for future M&A: ● Specialist CAPABILITIES EXISTING NEW/EXISTING NEW ● Ask a lot of questions ● Likely to make a purchase FUNDING FREE CASH FLOW
Slide 50: Growth through platform effect: scalable proprietary technology stack
Growth through platform effect ongoing investment in highly scalable proprietary technology stack Vanilla is our single modular web platform, Assets Websites Monetisation it has a single content management system Hawk is our our eCommerce service that enables the monetisation of our content Tech Ser
Slide 51: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth defined as the like for like portfolio at constant FX rates (i) excluding acquisitions and disposals made during HY 2021 and HY 2022 and (ii) including the impact of closures and new launches. Constant FX rates is defined as the average rate for HY
Slide 52: Market positions
Market positions ● Future Tech is #1 in comScore Ranked Category News/Information - Technology News for the UK Mar 2022 ● Future Home is #1 in comScore Ranked Category Lifestyles - Home/Architecture for the UK Mar 2022 ● TECHRADAR.COM is #1 in Future Plc curated Competitor Set Consumer Tech UK for M