Slide 1: 2013 Full Year Results Presentation
2013 Full Year Results Presentation 21 February 2014 1
Slide 2: Derek Mapp, Chairman
Derek Mapp Chairman informa
Slide 3: 2013 full year results presentation
2013 full year results presentation Leadership transition Cultural change and commercial stability Solid underlying performance in 2013 3
Slide 4: Gareth Wright, Deputy Finance Director
Gareth Wright Deputy Finance Director 4
Slide 5: 2013 full year results summary
2013 full year results summary A solid earnings and cash performance – Adjusted EPS up 5.0% to 40.1p – Operating cash conversion of 99% – Organic revenue growth of 1.5% to £1,132.4m – Adjusted EBITA up 1.1% to £335.5m Healthy balance sheet Dividend increased 2.2% to 18.9p 5
Slide 6: Divisional summary
Divisional summary Revenue 2013 £m 2012 £m Actual % Organic % Academic Publishing 367.1 340.3 7.9 5.3 Business Intelligence 350.6 356.6 (1.7) (3.9) Global Events 414.7 413.7 0.2 3.0 Group total 1,132.4 1,110.6 2.0 1.5 Adjusted Operating Profit Academic Publishing 130.9 126.1 3.8 3.1 Business Intelli
Slide 7: Income statement
Income statement 2013 £m 2012 £m Revenue 1,132.4 1,110.6 Adjusted operating profit 335.5 330.5 Adjusted operating margin 29.6% 29.8% Amortisation (105.1) (111.8) Other adjusting items (83.7) (90.9) Operating profit 146.7 127.8 Net interest (27.6) (30.9) Loss on disposal (112.9) (29.5) Tax (12.6) 23.
Slide 8: Operating cash flow
Operating cash flow 2013 £m 2012 £m Adjusted operating profit from continuing operations 335.5 330.5 Depreciation of PP&E 6.4 6.5 Amortisation 15.8 13.8 Share-based payments 2.2 3.8 EBITDA from continuing operations 359.9 354.6 Net capital expenditure (14.4) (21.4) Working capital movement (14.1) (2
Slide 9: Net debt movement
Net debt movement 2013 £m 2012 £m Net debt at 1 January 802.4 784.0 Free cash flow (209.6) (219.5) Dividends 114.0 107.4 Net acquisition spend 90.2 174.4 Operating cash flow of discontinued operations (4.5) (18.3) Foreign exchange (11.8) (26.4) Other items * 1.5 0.8 Net Debt at 31 December 782.2 802
Slide 10: Balance sheet summary
Balance sheet summary 2013 £m 2012 £m Intangibles and goodwill 2,378.2 2,601.2 Fixed assets 16.5 19.3 Other non-current assets 38.1 20.4 Current assets 247.8 269.3 Deferred income (316.0) (308.1) Other current liabilities (237.3) (285.4) Net debt (782.2) (802.4) Other non-current liabilities (154.0)
Slide 11: Leading through transition
Stephen A. Carter Group Chief Executive Leading through transition 11
Slide 12: Leading through transition
Leading through transition 12
Slide 13: Personal background
Personal background MA Alcatel-Lucent 4 informa
Slide 14: informa
informa
Slide 15: Twenty questions
Twenty questions Do you see logic/synergy to owning all three divisions? What is your view on leverage? 1 (ie Are you going to sell Academic Publishing or Business Intelligence?) 11 (ie Will you gear the balance sheet more aggressively?) How does your management style differ to Peter Rigby’s? What i
Slide 16: Working day
Working day 40 Key business centres visited 1 United Kingdom 1 4 2 Paris, France 5 3 3 Dusseldorf, Germany 2 7 13 14 15 6 12 4 Amsterdam, Holland 5 Eindhoven, Holland 16 6 Monaco 8 7 Zug, Switzerland 8 Dubai, Middle East 9 Sydney, Australia 11 10 Melbourne, Australia 11 Singapo
Slide 17: The knowledge and information economy
The knowledge and information economy 2.7bn 262m ≥ 2.7bn Internet users Globally, rising to half Number of students globally will double By the end of 2014, the number of the world population of 7.4bn by 2017 to 262m by 2025 mobile-connected devices will exceed the number of people on earth 12 month
Slide 18: Information industry: the ingredients
Information industry: the ingredients Pricing The passion power Relevance to of founders consumers Building Financial and exploiting model brands Informa Audience Operational building focus Sector User based specialisms Workflow tech platforms integration 18
Slide 19: Management approach
Management approach Create a Use the Recruit targeted Gently gently Identify key talent relationship with discovery period Executive talent the entire company Manage Sharpen Product, brands, Harness Maintain a high performance acquisition strategy platforms, people technology internal profile expect
Slide 20: Operational fitness
Operational fitness Simplification of business structure Acceleration of Group support and shared service activities International market expansion and speed to market Leverage scale in key sectors: Healthcare, Pharma, Technology, Telecoms, Financial etc Leverage scale in key markets: Middle East &
Slide 21: Generating profitable growth
Generating profitable growth Revenue refresh Reorientation of portfolio towards higher growth and higher margin businesses Leveraging existing customer, brand and IP assets to extend the business into new product areas, Creative revenue geographies and customer segments Reinvest in existing business
Slide 22: Informa operational anatomy
Informa operational anatomy Academic Publishing Business Intelligence Global Events Marketing, Sales, Technology Finance, Talent, Legal 2013 Revenue: £367.1m 2013 Revenue: £350.6m 2013 Revenue: £414.7m 2013 Adjusted OP: £130.9m 2013 Adjusted OP: £109.1m 2013 Adjusted OP: £95.5m Headcount: 1,757 Head
Slide 23: Summary
Summary A solid earnings and cash performance in 2013 A year of operational focus and management transition in 2014 2014 will be a year of measured change, Improve operational fitness across the Group operational focus and building a Academic Publishing and Global Events performing well plat
Slide 24: Thank you
Thank you informa
Slide 25: Appendices
Appendices informa
Slide 26: Tax
Tax Profits £m Tax £m ETR % Statutory results 115.7 (12.6) 10.9 Adjusted for: Restructuring and reorganisation costs 14.2 (3.7) Intangible asset amortisation 105.1 (26.9) Impairment 66.2 (4.0) Loss on disposal of investments 3.4 - Other adjusting items 3.0 0.1 Deferred tax credit arising from UK cor
Slide 27: Other adjusting items
Other adjusting items 2013 £m 2012 £m Impairment : - European Conferences 40.5 80.0 - Software intangibles 17.1 - - Robbins Gioia 8.3 - - Other 0.3 1.3 Restructuring and reorganisation costs 14.2 9.9 Acquisition related costs 5.8 1.3 Subsequent re-measurement of contingent consideration (2.5) (1.6)
Slide 28: Deferred income
Deferred income 2013 £m 2012 £m Actual % Constant Currency % Academic Publishing 105.0 109.6 (4.2) 3.4 Business Intelligence 92.4 90.5 2.1 2.3 Global Events 118.6 105.1 12.8 16.8 Group total 316.0 305.2 3.5 7.7 28
Slide 29: Currency
Currency Major currencies Average Rates Closing Rates 2013 2012 2013 2012 USD 1.5635 1.5898 1.651 1.6175 EUR 1.1776 1.2308 1.1997 1.2265 Impact of a 1 cent movement on full year financials USD £m EUR £m Revenue 3.2 0.9 Operating Profit 1.4 0.3 Net Debt 3.4 0.3 29
Slide 30: Return on investment
Return on investment Last 3 years ROI on acquisitions % 2012 acquisitions - 1st year ROI 10.9 2011 acquisitions - 1st year ROI 12.0 2010 acquisitions - 1st year ROI 12.5 Return on Capital Employed (%) 2013 2012 2011 2010 2009 Group ROCE 9.1 9.2 9.0 8.8 8.8 ROI is defined as tax-affected Adjusted EBI
Slide 31: Sponsored ADR program
Sponsored ADR program Informa ADRs trade on the US over-the-counter (OTC) market Symbol IFJPY ISIN US45672B2060 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