Slide 1: 2017 Full Year Results
2017 FULL YEAR RESULTS 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: 2017: Growth Acceleration Plan Completed
2017: GROWTH ACCELERATION PLAN COMPLETED Growth Acceleration Plan (GAP) GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy “ The goal is simple but demanding: progressively to return every part of our business to growth, and simu
Slide 4: 2017 Performance & Delivery
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE 2017 PERFORMANCE & DELIVERY 2017 FULL YEAR RESULTS FEBRUARY 2018 4
Slide 5: 2017: Growth Acceleration Plan Completed
2017: GROWTH ACCELERATION PLAN COMPLETED GROWTH Fourth year of growth in Revenue, Adjusted EPS, Cashflow & Dividends DELIVERY Operational capability and platform for future growth and scale through GAP INTEGRATE Effective integration of Penton Information Services delivered ahead of plan FOCUS Conti
Slide 6: 2017: Performance and Delivery
2017: PERFORMANCE AND DELIVERY Global Exhibitions Academic Publishing Business Intelligence Knowledge & Networking +7.6% +2.0% +2.2% +0.1% INFORMA GROUP GROWTH (including Penton) Underlying Underlying Earnings Free Cash Dividends Revenue Profit Per Share Flow Per Share +3.4% +2.3% +9.5% +31% +6.0% 2
Slide 7: Growth Acceleration Plan: Key Initiatives
GROWTH ACCELERATION PLAN: KEY INITIATIVES 1 Build and buy a scale B2B events business in the Global Exhibitions Division 2 Repair and return to growth the Business Intelligence Division 3 Simplify, focus and grow the Knowledge & Networking Division 4 Build scale and management capability in the US m
Slide 8: 2017 Financial Performance & Delivery
GARETH WRIGHT GROUP FINANCE DIRECTOR 2017 FINANCIAL PERFORMANCE & DELIVERY 2017 FULL YEAR RESULTS FEBRUARY 2018 8
Slide 9: 2017 Full Year Results
2017 FULL YEAR RESULTS 30.7% +31.3% 6.0% Increased Adjusted Higher Reported Revenue, Enhanced Dividend Operating Profit including Penton and YPI Per Share +31.3% to £545.5m (2016: £415.6m) +30.7% to £1,757.6m up 6.0% to 20.45p (2016: 19.30p) (2016: £1,344.8m) +9.5% Growth in Adjusted Diluted EPS
Slide 10: Revenue Growth Mix
REVENUE GROWTH MIX 2017 REVENUE GROWTH (%) +3.4% +5.7% +0.2% Phasing Underlying +21.4% Currency +30.7% Expansion & Scale 2017 FULL YEAR RESULTS FEBRUARY 2018 10
Slide 11: Effective Integration of Penton Information Services
EFFECTIVE INTEGRATION OF PENTON INFORMATION SERVICES Effective integration into Informa, led by Patrick Martell (Business Intelligence), COMBINE Charlie McCurdy (Global Exhibitions) and Andrew Mullins (Knowledge & Networking) On track to deliver at least $22.5m of gross synergies in 2018 through rem
Slide 12: Penton Cost Synergies on Track
PENTON COST SYNERGIES ON TRACK Corporate Overhead Management & Support Procurement $22.5m gross savings ($18.5m net savings)* 2017 2018 in-year in-year $15m $22.5m Significant Incremental Revenue Opportunities 6-Step Revenue Growth Plan Sponsorship Customer Value Initiatives Digitisation
Slide 13: Significant Incremental Revenue Opportunities
SIGNIFICANT INCREMENTAL REVENUE OPPORTUNITIES 6-STEP REVENUE GROWTH PLAN: PENTON INFORMATION SERVICES From Ingredients to Finished Goods: leveraging relationships across the value 1 Cross-Marketing chain: strong growth in Vitafoods Europe and doubling of Vitafoods Asia 2 Internationalisation Launch
Slide 14: All Four Divisions in Growth
ALL FOUR DIVISIONS IN GROWTH 2017 2016 Actual Underlying £m £m % % Revenue Global Exhibitions 560.4 321.1 74.5 7.6 Business Intelligence 384.2 302.4 27.1 2.2 Academic Publishing 530.0 490.4 8.1 2.0 Knowledge & Networking 283.0 230.9 22.6 0.1 Group 1,757.6 1,344.8 30.7 3.4 Adjusted Operating Profit G
Slide 15: Growth in Revenue, Adjusted Profit and Earnings
GROWTH IN REVENUE, ADJUSTED PROFIT AND EARNINGS 2017 2016 £m £m Revenue 1,757.6 1,344.8 Adjusted Operating Profit 545.5 415.6 Growth Adjusted Operating Margin 31.0 30.9 – Improving underlying growth – Reported growth enhanced by Penton, YPI and Net interest (59.1) (39.6) currency Adjusted profit bef
Slide 16: Strong Free Cash Flow Growth
STRONG FREE CASH FLOW GROWTH Free Cash Flow >£400m achieved – Underlying cash flow strong £400.9m – Benefit of Penton Information Services – Increased Capex reflects completion of GAP Investment programme – Tax credits from Penton and YPI offset increased US profits £305.7m Operating Cash Flow / Adj
Slide 17: Robust Balance Sheet
ROBUST BALANCE SHEET NET DEBT BRIDGE (£m) Robust balance sheet – 2.5x covenant gearing at year-end – Back within target range 14 months post Penton – Increased dividend on higher share count 1,485.4 1,373.1 Mix of bank debt and US PP debt – Funding of $500m US PP issuance in January 2017 – Funding o
Slide 18: Operating Discipline
OPERATING DISCIPLINE Portfolio Management Return on Capital Employed (%) 10.0% Academic Publishing 9.2% 9.2% 8.9% – Sale of Garland 9.0% 8.8% 8.3% 8.4% – Reduces exposure to more volatile Lower Level textbook market 8.0% Knowledge & Networking 7.0% – Sale of majority stake in domestic conference bus
Slide 19: Improving Operational and Financial Performance
IMPROVING OPERATIONAL AND FINANCIAL PERFORMANCE Organic/Underlying Revenue Growth (%)* Adjusted Operating Profit Growth (£m) 4.0% 600 +1.9ppts 3.4% 545.5 CAGR 3.0% 13% 500 2.0% 1.6% 1.5% 415.6 1.0% 400 365.6 1.0% 0.7% 335.2 334.0 0.0% 300 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Free Cash F
Slide 20: Growth Continuation
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE GROWTH CONTINUATION 2017 FULL YEAR RESULTS FEBRUARY 2018 20
Slide 21: Market Opportunities
MARKET OPPORTUNITIES MACRO THEMES REGIONAL THEMES North America – Global growth trends – Fiscal stimulus, interest rates and political debate – Monetary stimulus, interest rates and inflation Asia – China / Asia growth in a global context – Geo-political risk MENA – Power of US Tech companies – Oil
Slide 22: Global Exhibitions: Informa's Largest Division
GLOBAL EXHIBITIONS: INFORMA'S LARGEST DIVISION GROWTH TRENDS REVENUE BY REGION – Focus on major Brands in attractive verticals – Top 30 Brands: c.£4m revenue to qualify for Top 30 North America – Expand: Effective integration of Penton and YPI MENA – Yield improvements: rollout of Customer Value Ini
Slide 23: Market Maker Strategy
MARKET MAKER STRATEGY Target attractive industry verticals: B2B, fragmented, growing, international, high value and high margin product Build depth in verticals through multiple brands, across the supply chain Expand internationally to create focused scale in verticals Develop capabilities in data,
Slide 24: Markit Makr Product: Omnia in Life Sciences
MARKIT MAKR PRODUCT: OMNIA IN LIFE SCIENCES Leverages Arab Health Africa Health Medlab FIME Asia Health 20k+ Products 50%+ Exhibitors Leads Qualified, highly targeted lead generation 2017 FULL YEAR RESULTS FEBRUARY 2018 24
Slide 25: Markit Makr Product: Progressive Rollout Across Verticals
MARKIT MAKR PRODUCT: PROGRESSIVE ROLLOUT ACROSS VERTICALS 2017 FULL YEAR RESULTS FEBRUARY 2018 25
Slide 26: Business Intelligence: Improving Performance
BUSINESS INTELLIGENCE: IMPROVING PERFORMANCE GROWTH TRENDS REVENUE BY REGION – Subscription-led business with c.90% renewal rates – Momentum in other revenues following relaunch of Consulting… North America – …and launch of Marketing Services as Informa Engage Rest of World – Major rollout of new pr
Slide 27: Business Intelligence Product and Platform Launches
BUSINESS INTELLIGENCE PRODUCT AND PLATFORM LAUNCHES New Citeline platform – Intelligence, data and analysis on completed/ongoing clinical trials – 40,000 data sources, 265k clinical trials and 400k investigators – Enhanced capabilities, flexibility, APIs New EPFR platform – No 1 provider of fund flo
Slide 28: Business Intelligence Product and Platform Launches
BUSINESS INTELLIGENCE PRODUCT AND PLATFORM LAUNCHES New IEG Vu platform New Ovum Forecaster product – Critical supply, demand, price and trade data, as well – Combined forecasting on broadband, cellular, TV as proprietary forecasts for crops and livestock services and technologies commodities – Cove
Slide 29: Academic Publishing: Consistent Strength
ACADEMIC PUBLISHING: CONSISTENT STRENGTH GROWTH TRENDS REVENUE BY REGION – Upper Level scholarly research and specialist, reference-led content – High renewal rate and consistent growth in Journals North America – Improved Books performance through operational fitness programme Rest of World – Reduc
Slide 30: Academic Publishing Product Investment
ACADEMIC PUBLISHING PRODUCT INVESTMENT Enhanced Books Platform – Unified platform for all books content – Increased flexibility and discoverability of content – c.140k titles covered – >2,000 customers migrated onto platform with >500k sessions to date – www.taylorfrancis.com “Artificial Intelligenc
Slide 31: Academic Publishing Investment
ACADEMIC PUBLISHING INVESTMENT Dove Medical Press – Large, independent OA publisher – Increases OA portfolio to 200+ journals – Quality range of titles in Health Sciences, many indexed with growing impact factors – OncoTargets and Therapy, International Journal of Nanomedicine – Strengthened OA capa
Slide 32: Knowledge & Networking: Focus, Simplify and Grow
KNOWLEDGE & NETWORKING: FOCUS, SIMPLIFY AND GROW GROWTH TRENDS REVENUE BY REGION – Increased portfolio focus: Germany, Switzerland, Brazil – Focus on end markets: TMT, Life Sciences, Global Finance North America – Develop community Brands Rest of World – Maximise Networking and Partnering opportunit
Slide 33: Knowledge & Networking: Focus, Simplify and Grow
KNOWLEDGE & NETWORKING: FOCUS, SIMPLIFY AND GROW – Focus on branded events in core verticals of Life Sciences, Global Finance and TMT No of Events 12000 – Targeted exit from regional domestic conference businesses: 10000 ― Spain ― Portugal 8000 ― South Africa ― Netherlands – Amsterdam 6000 ― Netherl
Slide 34: K&N GAP Investment
K&N GAP INVESTMENT 2017 FULL YEAR RESULTS FEBRUARY 2018 34
Slide 35: Informa Group: Quality and Visibility of Earnings
INFORMA GROUP: QUALITY AND VISIBILITY OF EARNINGS REVENUE BY DIVISION REVENUE BY CURRENCY REVENUE BY TYPE 2017 2017 2017 Global Exhibitions US Dollar/Pegged Subscriptions Academic Publishing UK Sterling Exhibitor Business Intelligence Euros Sponsorship Knowledge & Networking Other currencies Attende
Slide 36: 2018: Growth Continuation
2018: GROWTH CONTINUATION POST-GAP FINANCIAL FRAMEWORK GLOBAL ACADEMIC BUSINESS KNOWLEDGE & EXHIBITIONS PUBLISHING INTELLIGENCE NETWORKING 5%+ underlying Consistent underlying 3%+ underlying Positive underlying revenue growth revenue growth revenue growth revenue growth 2018 GROWTH CONTINUATION Unde
Slide 37: Recommended Offer for UBM
RECOMMENDED OFFER FOR UBM • Recommended offer for UBM to create a leading Expected Offer Timetable B2B Information Services Group • For every UBM share 30 January Publication of Offer Announcement o 1.083 New Informa Shares and 163p in cash • Highly complementary portfolios 28 February Informa and U
Slide 38: 2017: Growth Acceleration Plan Completed
2017: GROWTH ACCELERATION PLAN COMPLETED Growth Acceleration Plan (GAP) GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy “ The goal is simple but demanding: progressively to return every part of our business to growth, and simu
Slide 39: Appendices
APPENDICES 2017 FULL YEAR RESULTS FEBRUARY 2018 39
Slide 40: Key Industry Verticals
KEY INDUSTRY VERTICALS Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate Science, Tech Humanities & Beauty & Aesthetics Pop Culture Transportation & Medical Social Science Anderson Books 2017 FULL YEAR RESULTS FEBRUARY 2018 40
Slide 41: Balance Sheet Summary
BALANCE SHEET SUMMARY 2017 2016 £m £m Intangibles and goodwill 4,309.6 4,501.6 Fixed assets 31.8 24.1 Other non-current assets 15.2 16.6 Current assets 480.6 439.7 Deferred income (534.6) (563.0) Other current liabilities (352.8) (311.1) Net debt (1,373.1) (1,485.4) Other non-current liabilities (34
Slide 42: Tax Summary
TAX SUMMARY 2017 Tax ETR £m £m % Reported Profit Before Tax 268.8 44.9 (16.7%) Adjusted for: Intangible asset amortisation 157.8 (58.6) Deferred tax (charge)/credit arising from revised treatment of certain non-UK intangible - 3.1 assets Benefit of US goodwill amortisation for tax purposes only - 12
Slide 43: Operating Cash Flow Summary
OPERATING CASH FLOW SUMMARY 2017 2016 £m £m Adjusted operating profit 545.5 415.6 Depreciation of property and equipment 9.2 6.5 Software and product development amortisation 24.8 14.2 Share-based payments 5.4 3.9 Adjusted share of joint venture and associate results - (0.8) Loss on disposal of othe
Slide 44: Other Adjusting Items
OTHER ADJUSTING ITEMS 2017 2016 £m £m Intangible asset amortisation 157.8 116.4 Impairment 5.6 67.7 Restructuring and reorganisation 12.9 7.2 Acquisition and integration 24.0 33.1 Subsequent re-measurement of contingent consideration (0.1) (7.4) Adjusting items in operating profit 200.2 217.0 Loss o
Slide 45: Currency Sensitivity
CURRENCY SENSITIVITY Major Currencies Average Rates Closing Rates 2017 2016 2017 2016 USD 1.29 1.36 1.35 1.23 Impact of a 1 cent movement in 2017: USD Revenue £8.5m Adjusted Operating Profit £3.5m Adjusted Diluted Earnings Per Share 0.30p 2017 FULL YEAR RESULTS FEBRUARY 2018 45
Slide 46: 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