Slide 1: 2019 Half-Year Results: Performing to Plan
2019 Half-Year Results Performing to Plan 24 July 2019
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: Performing to Plan
Performing to Plan Stephen A. Carter Group Chief Executive 2019 Half-Year Results: July 2019 3
Slide 4: The Knowledge & Information Economy
The Knowledge & Information Economy 500m 95m photos and videos are tweets sent every day shared daily on Instagram 294bn emails sent daily, Source: Twitter 4PB Source: Instagram Business rising to 306bn by 2020 data created by Facebook, and 320bn by 2021… with 3.9bn people using emails inc. 350m pho
Slide 5: Market Specialisation at Informa
Market Specialisation at Informa Growth Acceleration Plan Accelerated Integration Plan “Progressively return all our businesses to growth and “Create a leading B2B Information Services Group with simultaneously build the capabilities and platforms the reach and market capabilities to take full advan
Slide 6: Performing to Plan: Accelerated Integration Plan Complete
Performing to Plan: Accelerated Integration Plan Complete Phase 1 Phase 2 Phase 3 Phase 4 Discovery Ambition Combination Completion & Validation & Creation June – August 2018 August – November 2018 November 2018 – March 2019 March – July 2019 2019 Half-Year Results: July 2019 6
Slide 7: Performing to Plan: Accelerated Integration Plan Complete
Performing to Plan: Accelerated Integration Plan Complete Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Progressive Cost & Leadership Fashion Brand Model & Portfolio Revenue & Talent GAP Value Verticals Management Synergies Market Specialisation Enhanced Talent Increased Focus
Slide 8: Fundamental Strengths of the Enlarged Informa Group
The Knowledge & Information Economy Fundamental Strengths of the Enlarged Informa Group Growth Specialist International Fragmented Predictable Consistent, attractive and Reach and balance across Opportunities from Forward-booked and In everything we do sustainable growth all major regions fragmented
Slide 9: Performing to Plan: Continuing Growth in H1 2019
Performing to Plan: Continuing Growth in H1 2019 4.4% 2.1% 1.1% 3.2% 1.8% underlying underlying underlying underlying underlying revenue growth revenue growth revenue growth revenue growth revenue growth Underlying Pro-forma Underlying Adjusted Adjusted Earnings Free Cash Dividends Revenue Operating
Slide 10: Financial Performance to Plan
Financial Performance to Plan Gareth Wright Group Finance Director 2019 Half-Year Results: July 2019 10
Slide 11: 2019 Half Year Results Overview
2019 Half Year Results Overview 47.1% •+48.0% 7.1% Higher Reported Revenue Improved Adjusted Operating Profit Increased Dividend •+48.0% to £435.7m (H1 2018: £294.4m) Per Share +47.1% to £1,407.6m (H1 2018: £957.1m) up 7.1% to 7.55p 17.1% (H1 2018: 7.05p) Strong Comparable Adjusted EPS Growth
Slide 12: Continuing Divisional Growth
Continuing Divisional Growth Pro-forma Pro-forma H1 2019 H1 2018 Reported Underlying Informa Markets…Broad-based Growth £m £m % % • Health & Nutrition / Healthcare & Pharma Revenue • Fashion GAP launched Informa Markets 752.9 694.3 8.4 4.4 Informa Connect 111.7 103.4 8.0 2.1 Informa Connect…Improvin
Slide 13: Improving Growth Mix
Improving Growth Mix H1 2019 Revenue Growth (%) +47% Reported Growth H1 2019 Adjusted Operating Profit Growth (%) +48% Reported Growth 2019 Half-Year Results: July 2019 13
Slide 14: Continuing Growth in Revenue and Adjusted Profit
Continuing Growth In Revenue and Adjusted Profit H1 2019 H1 2018 Proforma H1 2018 £m £m £m Growth Revenue 1,407.6 957.1 1,306.6 • Full period of contribution from UBM Adjusted Operating Profit 435.7 294.4 371.7 • Currency tailwind Adjusted Operating Margin 31.0 30.8 28.4 Operating Margin • UBM was a
Slide 15: Robust & Resilient Margin
Robust & Resilient Margin 30.8% 31.0% Resilient Operating Margin • Full contribution from UBM, at a lower margin • Underlying growth and synergies • Mix of growth -3.3% • Transactional currency exposure 20bps Adjusted Operating Profit margin impacted by timing of UBM acquisition 2019 Half-Year Res
Slide 16: Operating Synergies on Track
Operating Synergies on track Corporate Management & Support Procurement Synergy Delivery On Track* 2019 2020 2021 in-year run-rate run-rate £50m £60m £75m Central Savings Benefit All Divisions Revenue Opportunities from 6-Step Plan 2019 Half-Year Results: July 2019 * £100m one-off cost to achieve ta
Slide 17: Enhanced Free Cash Flow
Enhanced Free Cash Flow Increased Free Cash Flow (£m) • Profit increase due to: • Full contribution from UBM 306 • FX tailwind • Underlying performance • 95% operating profit conversion • Improved working capital 131 +134% 2019 Half-Year Results: July 2019 17
Slide 18: Robust Long-term Financing
Robust Long-term Financing Efficient balance sheet Uses of cash flow (£m) • Deleveraging on track • 2.7x covenant gearing at end of June • IFRS 16 adds £319.3m to closing net debt Balanced & Flexible Mix of Funding Sources Pro-forma debt maturity as at 30 June 2019 (£m) 700 • RCF renegotiated Februa
Slide 19: Capital Allocation Framework for Enlarged Group
Capital Allocation Framework for Enlarged Group • Consistent reinvestment for growth Organic Growth • Capex at 3-4% of revenue (c.£80-110m) • Progressive dividends, growing broadly Adj. Operating Free Shareholder Returns in line with earnings (c.£300m) Profit Cash Flow £900m+ £600m+ • Target leverag
Slide 20: Full Year Performance to Plan
Full Year Performance to Plan Consistent & predictable growth Strong cash generation Attractive operating margins Reduction in leverage Improving returns, £50m in-year operating synergies with dividend growth of 7%+ 2019 Half-Year Results: July 2019 20
Slide 21: Performing to Plan
Performing to Plan Stephen A. Carter Group Chief Executive 2019 Half-Year Results: July 2019 21
Slide 22: Fundamental Strengths of the Enlarged Informa Group
The Knowledge & Information Economy Fundamental Strengths of the Enlarged Informa Group Growth Specialist International Fragmented Predictable Consistent, attractive and Reach and balance across Opportunities from Forward-booked and In everything we do sustainable growth all major regions fragmented
Slide 23: Purpose and Guiding Principles
Culture & Identity: Informa…Championing the Specialist Purpose Informa’s purpose is to champion the specialist, connecting people with knowledge to help them Guiding Principles learn more, know more and do more 1 Think big. Act Small 2 Trust must be earned 3 Success is a partnership 4 More freedom.
Slide 24: Market Specialisation: Informa Markets
Market Specialisation: Informa Markets Relative Growth and Margin across chosen major verticals Healthcare & Pharma Hospitality, Food & Beverage Health & Nutrition Beauty & Aesthetics Growth Manufacturing, Machinery & Equipment Infrastructure, Construction & Real Estate Aviation & Aerospace Maritime
Slide 25: Market Specialisation: Informa Tech
Market Specialisation: Informa Tech Informa Tech TMT Portfolio • >100 leading B2B Tech • 1st August completion brands • Leading brands in: • Data, Research, Media, • Information Tech Training & Events • Communications Tech Specialist Markets Balance & breadth • Security Tech International reach Insp
Slide 26: Divisional Strengths & Opportunities
Divisional Strengths & Opportunities Broad-based Growth Improving Growth Building Growth Predictable Growth Resilient Growth • Specialist B2B Brands • Specialist B2B Brands • Specialist B2B Brands • Specialist B2B Brands • Specialist Publishing Brands Strengths • International Reach • Content curati
Slide 27: AIP Progressive Portfolio Management Nearing Completion
AIP Progressive Portfolio Management Nearing Completion Divest Review Retain Life Sciences Media Portfolio Final review to be IGM AgriBusiness completed by end of Portfolio Q3 IIS Annual Revenue of c.£120m already divested Focus on strongest brands in specialist markets with the best opportunities f
Slide 28: Informa Focus for 2019
Informa Focus for 2019 Combination Focus on completing the Combination, including operating and systems improvement Culture Focus on embedding a shared purpose and set of values across the enlarged Group Deleverage Focus on returning to our target leverage range of 2.0-2.5x Net Debt / EBITDA Deliver
Slide 29: 2019 Growth Outlook Confirmed
2019 Growth Outlook Confirmed 2019 Performance & Growth 4.5%+ 2.5%+ 2%+ c.3% 2%+ underlying underlying underlying underlying underlying revenue growth revenue growth revenue growth revenue growth revenue growth 2019 Informa Group underlying revenue growth 3.5%+ 11 Nov 2019 Trading Update 10 March 20
Slide 30: Depth & Specialisation at Informa
Depth & Specialisation at Informa Specialist Markets Depth of Talent Specialist Brands Consistent Revenue Resilient Operating Strong Cash Growth Margins Conversion Predictable performance and improving returns 2019 Half-Year Results: July 2019 30
Slide 31: Visit to CPhI Worldwide
Visit to CPhI Worldwide 30th Anniversary in 2019 165+ countries 2,500 Exhibitors 100k+ SQM Investor & Analyst tour 45k+ professionals Messe Frankfurt Wednesday 6 November 2019 2019 Half-Year Results: July 2019 31
Slide 32: Appendices
Appendices 2019 Half-Year Results: July 2019 32
Slide 33: The Informa Group
The Informa Group 2019 Half-Year Results: July 2019 33
Slide 34: Updated Operating Structure
Updated Operating Structure Reported Proforma* Proforma* Proforma* H1 2019 H1 2018 FY 2018 FY 2017 Informa Markets £m £m £m £m • Addition of UBM portfolio Revenue • 2019 target of 4.5%+ ULG Informa Markets 752.9 694.3 1,356.4 1,349.9 Informa Connect 111.7 103.4 214.9 236.6 Informa Intelligence Infor
Slide 35: Informa Markets
Key Brands Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Through more than 550 international B2B brands, we provide opportunities to engage, experience and do business via face-to-face exhibitions, specialist digital content and actionable data
Slide 36: 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 37: 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 38: 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 39: 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 40: Informa Markets: Biennial Impact
Informa Markets: Biennial Impact H1 H2 FY Key Biennial Brands Even years (2018) Revenue c.65% c.35% c.£75m Food Hotel Asia, Health Ingredients Europe, International Powder Bulk, Offshore South East Asia Adjusted Operating Margin <30% >30% c.30% Odd years (2019) Revenue c.40% c.60% c.£95m Food Ingred
Slide 41: IFRS 16 Summary
IFRS 16 Summary H1 2019 Expected impact of IFRS 16 on FY 2019 Impact on Adjusted Operating Profit +£0.8m +£7.4m Impact on Net Interest Charge (£6.7m) (£13.5m) Impact on Adjusted Profit Before Tax (£5.9m) (£6.1m) Impact on Adjusted EPS (0.4p) (0.4p) Impact on Closing Net Debt (£319.3m) 2019 Half-Year
Slide 42: Tax Summary
Tax Summary H1 2019 Tax ETR £m £m % Reported Profit Before Tax 232.8 (36.2) 15.6 Adjusted for: Intangible asset amortisation and impairment 158.3 (43.4) Acquisition and integration costs 20.1 (3.8) Restructuring and reorganisation costs 6.9 (1.0) Re-measurement of contingent consideration 2.1 - Prof
Slide 43: Cash Flow Summary
Cash Flow Summary Reported Restated* Restated* H1 2019 H1 2018 FY 2018 £m £m £m Adjusted operating profit 435.7 294.4 732.1 Depreciation of property and equipment 8.4 4.3 13.1 Depreciation of right of use assets 15.8 - - Software and product development amortisation and impairment 21.8 17.9 42.5 Sha
Slide 44: Other Adjusting Items
Other Adjusting Items H1 2019 H1 20181 £m £m Intangible amortisation and impairment 158.3 82.9 Acquisition and integration costs 20.1 52.2 Restructuring and reorganisation costs 6.9 10.1 Re-measurement of contingent consideration 2.1 (0.8) Adjusting items in operating profit 187.4 144.4 (Profit)/los
Slide 45: Currency Sensitivity
Currency Sensitivity Average Rates Closing Rates H1 2019 H1 2018 H1 2019 H1 2018 USD 1.30 1.37 1.27 1.32 The impact of a 1 cent movement in the USD to GBP exchange rate in H1 2019: Revenue £14m Annual adjusted operating profit £6m Annual adjusted earnings per share 0.4p 2019 Half-Year Results: July
Slide 46: Balance Sheet Summary
Balance Sheet Summary 30 June 2019 31 December 2018 £m £m Intangibles and goodwill 10,055.2 10,198.3 Fixed assets 70.9 69.7 IFRS 16 assets 291.7 - Other non-current assets 40.8 60.7 Current assets (excluding cash) 554.3 546.3 Deferred income (780.2) (701.2) Finance lease current liabilities (34.1) -
Slide 47: 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 48: Thank you
O informa Thank you Informa.com