Slide 1: 2014 Full Year Results Presentation
2014 Full Year Results Presentation 12th February 2015 1
Slide 2: 2014 Measured Change
Stephen A. Carter Group Chief Executive 2014 Measured Change 2
Slide 3: 2014 Full year results summary
2014 Full year results summary Growth in revenue and earnings Organic revenue growth 0.7% Adjusted operating profit of £334.1m Adjusted EPS of 40.3p, constant currency growth of 4.5% Dividend per share +2% to 19.3p Strong free cash flow growth +12% to £232.5m Targeted and disciplined a
Slide 4: 2014 Measured Change
2014 Measured Change Manage the transition Improved earnings, increased dividends and 2014 will be a stronger cash flow year of measured change, Operational fitness operational focus Targeted acquisitions: geography and market and building a platform for the Portfolio review completed futu
Slide 5: Selected highlights of 2014
Selected highlights of 2014 Markets Performance Increased discoverability driving growth Positive organic growth in AP and GE Digital marketing and workflow integration Managed transition through BI leadership change Robust US, UK, Middle East and Africa Growth across major regional hubs
Slide 6: 2014-2017 Growth Acceleration Plan framework
2014-2017 Growth Acceleration Plan framework Growth Acceleration Plan GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy 6
Slide 7: Maintaining financial discipline
Gareth Wright Group Finance Director Maintaining financial discipline 7
Slide 8: 2014 Full year results summary
2014 Full year results summary Growth in revenue and earnings Organic revenue growth 0.7% Adjusted operating profit of £334.1m Adjusted EPS of 40.3p, constant currency growth of 4.5% Dividend per share +2% to 19.3p Strong free cash flow growth +12% to £232.5m Targeted and disciplined a
Slide 9: Divisional summary
Divisional summary Revenue 2014 £m 2013 £m Actual % Organic % Academic Publishing 408.9 407.8 0.3 3.0 Business Intelligence 281.7 305.9 (7.9) (8.5) Global Exhibitions 200.2 160.2 25.0 18.9 Knowledge & Networking 246.2 256.1 (3.9) (3.2) Group total 1,137.0 1,130.0 0.6 0.7 Adjusted Operating Profit Ac
Slide 10: Income statement
Income statement 2014 £m 2013 £m Revenue 1,137.0 1,130.0 Adjusted operating profit 334.1 334.7 Adjusted operating margin 29.4% 29.6% Amortisation (93.9) (105.0) Other adjusting items (242.6) (83.7) Operating (loss)/profit (2.4) 146.0 Share of results of joint ventures (0.4) 0.4 Net interest (25.6) (
Slide 11: Increased financial discipline
Increased financial discipline Operating Re-domicile to UK discipline Simplified operating structure Asset review of historical Datamonitor acquisition Portfolio Closure & consolidation of Jo’burg, Singapore and Melbourne events activities discipline Consumer assets under review Investment
Slide 12: Operating cash flow
Operating cash flow 2014 £m 2013 £m Adjusted operating profit from continuing operations 334.1 334.7 Depreciation of PP&E 6.1 6.4 Amortisation 12.1 15.7 Share-based payments 1.7 2.2 EBITDA from continuing operations 354.0 359.0 Net capital expenditure (14.7) (14.4) Working capital movement (15.5) (1
Slide 13: Cash flow discipline
Cash flow discipline Completion of tax settlement process 2014-2017 Growth Acceleration Plan Capital allocation controlled by Design Authority Stage-gate payments dependent on delivering benefits Positive underlying deferred income at year-end Strong deferred income in growing Global Exh
Slide 14: Net debt movement
Net debt movement 2014 £m 2013 £m Net debt at 1 January (782.6) (802.4) Free cash flow 232.5 207.8 Dividends (114.9) (114.0) Net acquisition spend (369.0) (88.8) Operating cash flow of discontinued operations (3.8) 4.5 Foreign exchange (40.1) 11.8 Other items * 201.7 (1.5) Net Debt at 31 December (8
Slide 15: Balance sheet summary
Balance sheet summary 2014 £m 2013 £m Intangibles and goodwill 2,529.7 2,376.9 Fixed assets 17.5 16.5 Other non-current assets 31.1 39.2 Current assets 267.6 247.6 Deferred income (342.9) (315.9) Other current liabilities (241.7) (237.1) Net debt (876.2) (782.6) Other non-current liabilities (153.4)
Slide 16: GAP Investment: financial profile
GAP Investment: financial profile £m £m £m People and AP organisation 2015 £30-40 Customer BI engagement & value creation 2016 £30-35 GE Product and content refresh K&N Production 2017 £10-15 agility and Group scale GAP investment quantum and profile on track 16
Slide 17: 2014-2017 Financial execution & delivery
2014-2017 Financial execution & delivery Focus on priority verticals Portfolio Review of alternatives for non-core assets Consistent cash management and control Minimum commitment of 2% DPS growth Returns Targeted approach to M&A - strategic & financial hurdles Consolidation of regional
Slide 18: Accelerating growth
Stephen A. Carter Group Chief Executive Accelerating growth
Slide 19: 2014-2017 Growth Acceleration Plan
2014-2017 Growth Acceleration Plan GAP GAP Operating Management Structure Model GAP GAP Portfolio Acquisition Management Strategy GAP GAP Investment Funding 19
Slide 20: Strengthened management capability
Strengthened management capability Stephen Carter CEO Gareth Wright Group FD Executive Knowledge Talent & Strategy & Academic Business Global IR, Comms General Management Publishing Intelligence Exhibitions & Trans- Business & Brand Counsel Team Networking formation Planning Senior Management Te
Slide 21: Internationalisation of Informa
Internationalisation of Informa Informa revenue by region ROW SOUTH AMERICA MIDDLE EAST ASIA UNITED KINGDOM CONTINENTAL EUROPE NORTH AMERICA 2010 2014 pro-forma 21
Slide 22: Market focus and prioritisation – Academic Publishing
Market focus and prioritisation – Academic Publishing Academic Publishing Business Intelligence Sales internationalisation Reorganised into five market-facing units Platform development and product innovation Improved vertical focus and customer engagement Content growth and discoverabilit
Slide 23: Market focus and prioritisation – Global Exhibitions
Market focus and prioritisation – Global Exhibitions Academic Publishing Business Intelligence Sales internationalisation Reorganised into five market-facing units Platform development and product innovation Improved vertical focus and customer engagement Content growth and discoverability
Slide 24: Building & Buying a world class Exhibition business
Building & Buying a world class Exhibition business Targeted Approach Establish Identify Develop Post priority Acquisition attractive relationship acquisition verticals & opportunities targets network playbook geographies Value creation Revenue Strategic fit Cost savings opportunity synergies 24
Slide 25: Geo and vertical expansion: Construction & Real Estate
Geo and vertical expansion: Construction & Real Estate Hanley Wood Exhibitions builds on existing strengths in C&RE 17 major mainly US based exhibitions and trade shows Well established, market leading brands Strong Management team: Rick McConnell Chairman of SISO Advanced systems, technol
Slide 26: Construction & Real Estate: an attractive vertical
Construction & Real Estate: an attractive vertical External market trends Global construction output to grow >70% to $15 trillion by 2025 US housing starts +15.8% YoY (Jan 2015 projection) US Architecture Billings Index +7.4% YoY (Dec 14) Informa performance 2015 World of Concrete >20% Y
Slide 27: Strengthening priority verticals
Strengthening priority verticals Target acquisitions & Strong base geo-cloning Construction & Real Estate Health & Nutrition Pop Culture 27
Slide 28: Market focus and prioritisation – Business Intelligence
Market focus and prioritisation – Business Intelligence Academic Publishing Business Intelligence Sales internationalisation Reorganised into five market-facing units Platform development and product innovation Improved vertical focus and customer engagement Content growth and discoverabil
Slide 29: Business Intelligence roadmap
Business Intelligence roadmap 2010-2014 2015 2016 Organic growth • CAGR of –3%; -8.5% in 2014 • Halve organic decline by yr-end • Positive run-rate by year-end • Underinvestment • Restructure around verticals • Accelerated new product development Product • Diverse & distributed portfolio • Product m
Slide 30: Business Intelligence profile
Business Intelligence profile Revenue by vertical Revenue by type Revenue by region 2014 2014 2014 Focus Resilience Geo-Diversity 30
Slide 31: Business Intelligence operating metrics
Business Intelligence operating metrics Snapshot 2013/4 % of revenue from subscriptions 87% Annualised Contract Value (ACV) Value Renewal Rate 75-80% Pre-Expiry Value Renewal Rate 50-55% New Business Value Rate Absolute Pipeline Value 31
Slide 32: Market focus and prioritisation – Knowledge & Networking
Market focus and prioritisation – Knowledge & Networking Academic Publishing Business Intelligence Sales internationalisation Reorganised into five market-facing units Platform development and product innovation Improved vertical focus and customer engagement Content growth and discoverabi
Slide 33: 2014 Delivery
2014 Delivery Focus Increased operational fitness and business focus GAP In depth portfolio review leading to launch of Growth Acceleration Plan M&A Targeted acquisitions in Global Exhibitions to build US presence Pace Measured Change approach to manage the transition Performance Improved earnings,
Slide 34: 2015 Ambition
2015 Ambition Focus Increased focus and purpose across the Group…a clear mandate GAP Launch of investment programme: >£30m budgeted investment in 2015 M&A Further targeted acquisitions; Selective disposals Pace From Measured Change to Accelerated Change Performance Continued delivery: further growth
Slide 35: Thank you
Thank you informa
Slide 36: Appendices
Appendices . informa
Slide 37: Tax
Tax Profit/(loss) £m Tax £m ETR % Statutory results (31.2) 19.8 (63.5) Adjusted for: Restructuring and reorganisation costs 20.7 4.1 Intangible asset amortisation 4.7 1.4 Impairments 93.9 25.6 Loss on disposal of investments 2.8 - Other adjusting items (0.3) 0.7 Deferred tax credit arising from UK c
Slide 38: Other adjusting items
Other adjusting items 2014 £m 2013 £m Impairment : - Consumer information assets 150.0 - - Pharma & Healthcare information assets 40.0 - - Melbourne Events 12.5 - - Chinese Pharma data investment loan 13.5 - - Expo Vinis loan 1.0 - - European Conferences - 40.5 - Software intangibles - 17.1 - Robbin
Slide 39: Deferred income
Deferred income 2014 £m 2013 £m Actual % Constant Currency % Academic Publishing 101.5 114.0 (11.0) (16.7) Business Intelligence 77.2 75.6 2.1 (1.2) Global Exhibitions 122.2 82.0 49.0 44.2 Knowledge & Networking 42.0 44.3 (5.2) (4.8) Group total 342.9 315.9 8.5 4.6 39
Slide 40: Currency
Currency Major currencies Average Rates Closing Rates 2014 2013 2014 2013 USD 1.6485 1.5635 1.5596 1.6510 EUR 1.2422 1.1776 1.2833 1.1997 Impact of a 1 cent movement in 2014 USD £m EUR £m Revenue 3.4 0.7 Operating Profit 1.5 0.2 Net Debt 5.3 0.3 EPS 0.16p 0.03p 40
Slide 41: Sponsored ADR program
Sponsored ADR program 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 Lance Miller T
Slide 42: www.informa.com
www.informa.com informa