Slide 1: 2021 Full-Year Results: Portfolio Focus, Balance Sheet Strength & Accelerating Growth
2021 Full-Year Results Portfolio Focus, Balance Sheet Strength & Accelerating Growth 15 March 2022 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: Current Macro Environment
Current Macro Environment The COVID-19 Pandemic: 2020/2021 The COVID-19 Pandemic: 2022/2023 • Focus on Stability & Security, preserving the long-term value • COVID recovery trend is consistent, combining vaccines, of our Brands and Businesses boosters and working practices to work and live with the
Slide 4: Current Macro Environment
Current Macro Environment Ukraine • No Colleagues, trading operations or commercial entities based in Ukraine • No Colleagues or trading operations or commercial entities based in Russia or Belarus • No B2B events held in Russia, Belarus or Ukraine • Minimal international exposure to revenue from co
Slide 5: £425bn 6x
£425bn 95% Market size of Forecast size of 2020 academic exhibitions market R&D grants in 2023 v 2019 Source: Dimensions AI EY Source: AMR Pantheon Knowledge & Information Economy 65%+ 6x Exhibitors agree Typical spend on exhibitions reduce Digital Services their carbon versus F2F Events footprint S
Slide 6: New Informa
New Informa Championing the Specialist Connecting people with knowledge to help them learn more, know more and do more Academic Markets & Knowledge Services B2B Markets & Digital Services Behavioural Physical Beauty & Fintech & Life Sciences Artificial Cyber Psychology Engineering Education Pharma A
Slide 7: Academic Markets: Operating Strength & Market Opportunities
Academic Markets: Operating Strength & Market Opportunities Fundamental Strengths Market Opportunities North America Depth in Specialist Subjects Specialist Verified Knowledge Mainland China Specialist Brands Research Funding Hong Kong Rest of Asia Reputation and Tenure Open Research Service
Slide 8: B2B Markets: Operating Strength & Market Opportunities
B2B Markets: Operating Strength & Market Opportunities Fundamental Strengths Market Opportunities North America Specialist Brands Live Events Return Mainland China Depth in Specialist Markets Smart Events Technology Hong Kong Rest of Asia International Breadth Market Fragmentation UK Con
Slide 9: 2021 Highlights
2021 Highlights GROWTH Revenue of £1,799m (2020 :£1,661m). Statutory revenue growth of +8.3% and +6.1% underlying ACCELERATION Adjusted Operating Profit of £388m (2020: £267m). Reported growth of +46% and +36% underlying STRONG Operating cash conversion of 147%, delivering Free Cash Flow of £439m (2
Slide 10: 2021: Growth in Revenues, Profits and Cash Flow
2021: Growth in Revenues, Profits and Cash Flow 2.4% 7.7% 3.8% 13.9% 6.5% underlying underlying underlying underlying underlying revenue growth revenue growth revenue growth revenue growth revenue growth Underlying Diluted Underlying Free Cash Informa Adjusted Adjusted Earnings Revenue Flow Leverage
Slide 11: 2022 Portfolio Focus, Balance Sheet Strength & Accelerating Growth
2022 Portfolio Focus, Balance Sheet Strength & Accelerating Growth Academic Markets & Knowledge Services B2B Markets & Digital Services • GAP II part of 10-year Modernisation Programme to develop • Progressive return in confidence and activity across 30+ specialist digital infrastructure and digital
Slide 12: Live & On-Demand Events: Robust Return
Live & On-Demand Events: Robust Return North Mainland ASEAN & Middle East Europe America China Hong Kong OPEN MARKETS ATTENDEE PARTICIPATION EXHIBITOR VOLUMES FORWARD BOOKINGS NEW LAUNCHES INTERNATIONAL PARTICIPATION 2022 PERFORMANCE v 2019
Slide 13: Live & On-Demand Events: Top Brands in 2022 to date
Live & On-Demand Events: Top 10 Brands in 2022 to date LOCATION CATEGORY BRAND REVENUE EXHIBITORS ATTENDEES DOMESTIC NET SQ. FT Middle East Healthcare Arab Health £20m+ 2,300+ 44,000+ 5-10% 425,000+ North America Real Estate & Construction World of Concrete £20m+ 1,000+ 18,000+ 85%+ 640,000+ Middle
Slide 14: Live & On-Demand Events: New Launches & Return of a Classic
Live & On-Demand Events: New Launches & Return of a Classic Luxury & Lifestyle Tech Health & Nutrition • The inaugural Miami International Boat Show • International Tech leaders convened in Riyadh for • Return of Natural Products Expo West, the Health brought together The Miami International Boat Sh
Slide 15: The Power of B2B Live Events
The Power of B2B Live Events INTIMACY AT SCALE SME access Price discovery Single trip multi-customer/industry access Content & networking New product launches Strengthen relationships F2F for business development Pre & Post event connections Efficient & Purposeful travel Order book build Distributio
Slide 16: 2021-2024 Growth Acceleration Plan II
2021-2024 Growth Acceleration Plan II GAP GAP GAP GAP GAP GAP Portfolio Digital Leadership Investment Shareholder Faster Focus & Data & Talent Returns Forward Market Specialisation Digital Acceleration Enhanced Talent Investment for Growth Improving Returns Sustainable Practices Sale of Pharma Intel
Slide 17: GAP II Portfolio Focus: Divestment of Pharma Intelligence
GAP II Portfolio Focus : Divestment of Pharma Intelligence Binding agreement for sale of Pharma Intelligence for £1.9bn £1.7bn pre-tax proceeds, with 15% equity interest in forward business Opportunity to benefit from future growth and value Expected tax on divestment of c£200m Transaction expected
Slide 18: Faster to Zero
Faster to Zero Moving faster to become a zero waste and net zero carbon business No 1 A- <1.5° 2021 rating Verified targets Faster to Zero Sustainability Inside Impact Multiplier United Nations Sustainable Development Goals • CarbonNeutral® Company certification for 2nd • In 2021, 70%+ of our event
Slide 19: Portfolio Focus, Balance Sheet Strength & Accelerating Growth
2021 Full-Year Results Portfolio Focus, Balance Sheet Strength & Accelerating Growth Gareth Wright Group Finance Director
Slide 20: 2021 Full Year Results
2021 Full Year Results 8.3% +45.7% £100m Growth in Adjusted Operating Profit Higher Reported Revenue Share buybacks completed to date +45.7% to £388m (2020: £267m) +8.3% to £1,799m A further £200m committed to next stage of (2020: £1,661m) the programme 70% Higher Adjusted Diluted EPS +6.1% 16.7p
Slide 21: Growth & Financial Delivery in 2021
Growth & Financial Delivery in 2021 2021 2020 £m £m Higher Revenues Revenue 1,798.7 1,660.8 • Reported Growth of 8.3%, Underlying Growth of 6.1% Adjusted Operating Profit 388.4 266.6 Adjusted Operating Margin 21.6% 16.1% Growth in Adjusted Operating Profit • Reported Growth of 46%, Underlying Growth
Slide 22: All Divisions delivering Underlying Revenue Growth
All Divisions delivering Underlying Revenue Growth 2021 2020 Reported Underlying £m £m % % Revenue Taylor & Francis Informa Markets 608.5 523.5 16.2 7.7 • Consistent and improving growth Informa Connect 130.6 124.2 5.2 3.8 • Robust Pay to Read performance Informa Tech 165.9 151.8 9.3 13.9 • Accelera
Slide 23: Accelerating Revenue and Profit Growth
Accelerating Revenue and Profit Growth 2021 Revenue Growth (%) 8.3 % Reported Growth 2021 Adjusted Operating Profit Growth (%) 45.7% Reported Growth 2021 Full-Year Results Presentation 23
Slide 24: Strong Free Cash Flow in 2021
Strong Free Cash Flow in 2021 £439m Free Cash Flow in 2021 • Focus on cash management and cash controls • Higher EBITDA from Live events return £95m • Improvement in working capital driven by strong re-bookings and lower refunds • Reduction in one-off pandemic- related costs £(154)m £439m 2020 COVID
Slide 25: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Debt maturities as at 31 December 2021 (£m) 1,000.0 EMTN RCF drawn Strong Free Cash Flow of £439m 900.0 --- RCF Undrawn No maturities until July 2023 800.0 Bank Substantial liquidity of £1.9bn (Undrawn RCF and Cash balances) 700.0 600.0 No Group financial
Slide 26: Investment for Growth
Investment for Growth IIRIS GAP II total net investment of up to £150m • Further expansion of B2B Customer Data & Analytics Platform 2022 GAP II net investment of up to £75m • Embed technology and services across a further 10+ vertical market businesses Expected Capex/Net Opex split 80%/20% • Expand
Slide 27: Accelerating Shareholder Returns
Accelerating Shareholder Returns • Return up to £1bn of embedded value through 2022/2023 • Pharma Investment divestment for £1.9bn – expected post-tax proceeds of c£1.5bn £100m Capital returned to date • Share Buyback Programme launched on 14 February 2022 Tranche 1 completed: £200m • 17m shares rep
Slide 28: Reconfirming 2022 Guidance
Reconfirming 2022 Guidance 2022 Guidance 2022 Guidance 2022 Updated Guidance (Inc. Informa Intelligence) (Ex-Informa Intelligence) • Revenue: £2,200m – £2,400m • Revenue: £1,875m – £2,075m • Revenue: £2,150m – £2,250m • Adj. Operating Profit: £520m – £540m • Adj. Operating Profit: £420m – £440m • Ad
Slide 29: Portfolio Focus, Balance Sheet Strength & Accelerating Growth
2021 Full-Year Results Portfolio Focus, Balance Sheet Strength & Accelerating Growth Stephen A. Carter Group Chief Executive
Slide 30: 2021-2024 Growth Acceleration Plan II
2021-2024 Growth Acceleration Plan II GAP GAP GAP GAP GAP GAP Portfolio Digital Leadership Investment Shareholder Faster Focus & Data & Talent Returns Forward Market Digital Enhanced Investment Improving Sustainable Specialisation Acceleration Talent for Growth Returns Practices 2021 Full-Year Resul
Slide 31: GAP II: Academic Markets & Knowledge Services
GAP II: Academic Markets & Knowledge Services 1 2 3 Enduring importance of Rebalancing towards Expanding capabilities Read and Publish Pay to Publish of Researcher Services Serving a growing knowledge economy Responding to diversity of customer Modern data and technology foundations £501bn to £1.6tn
Slide 32: Accelerating Growth in Academic Markets
Accelerating Growth in Academic Markets Analogue v Digital Institution v Retail Intermediaries v Direct 2024 17% | 83% 2024 76% | 24% 2024 55% | 45% 2021 22% | 78% 2021 74% | 26% 2021 64% | 36% 2017 30% | 70% 2017 70% | 30% 2017 78% | 22% Product v Service Librarian v Non-Librarian Market Pay to Rea
Slide 33: GAP II: B2B Markets & Digital Services
GAP II: B2B Markets & Digital Services 1 2 3 Expansion of capabilities Enduring strength & Transition from B2B Events in Audience Development power of B2B Events to Smart Events & Digital Demand Gen. Transition the full portfolio of B2B Events Operationalise the full power of IIRIS Full return and s
Slide 34: IIRIS: B2B Customer Data & Analytics Engine
IIRIS: B2B Customer Data & Analytics Engine Registration & CRM Systems Proprietary tracking of user activities on websites for in-depth audience behavioural data Smart Event & Simplified registration, consent and Media Platforms behavioural tracking to increase known and marketable audience Personal
Slide 35: IIRIS: 2022 Priorities, Pace & Performance
IIRIS: 2022 Priorities, Pace & Performance 2021 2022 IIRIS Recommend IIRIS Recommend 2022 Audience Interactions 1bn 1.5bn Scale Audience Unknown Audience 100m+ 150m+ • Rolled out 350k+ recommended Development Known, Engaged, articles Marketable Audience 10m 14m (KEMA) • Increased website dwell time
Slide 36: Accelerating Audience Development in 2022
Accelerating Audience Development in 2022 Vertical Market Audience Development Aviation Agriculture Embed IIRIS, upgrade content platforms and Medical Technology enhance existing capabilities Tech Infrastructure & Construction Health & Nutrition Embed IIRIS, onboard to content platforms
Slide 37: Accelerating Digital Demand Generation via NetLine
Accelerating Digital Demand Generation via NetLine • Operating alongside Informa Tech, expanding depth and reach of KEMA across Tech verticals Content syndication and lead generation • Accelerating growth through experience, capabilities and established products • Single identity / registration acro
Slide 38: Summary
Summary PORTFOLIO FOCUS Divestment of Pharma Intelligence for £1.9bn, Financial Intelligence process underway BALANCE SHEET Leverage at 2.8x pre-divestments; Long-term, covenant-free, flexible financing STRENGTH ACCELERATING Robust return of Live & On-Demand Events, further strong growth in B2B Digi
Slide 39: Appendix
Appendix
Slide 40: Accelerating sustainable change in our business and the specialist markets we serve
Accelerating sustainable change in our business and the specialist markets we serve. Faster to Zero Sustainability Inside Impact Multiplier Moving faster to become Embedding sustainability Multiplying the positive impact a zero waste and net zero inside every one of our brands we create when we impr
Slide 41: Taylor & Francis
Taylor & Francis Taylor & Francis publishes peer-reviewed scholarly research and specialist reference-led academic content £545m £204m 2.4% across subject areas within Humanities & Social Revenue Adj. Op. Profit Underlying Growth Sciences and Science, Technology and Medicine. It is recognised intern
Slide 42: Informa Markets
Informa Markets Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Through £609m £67m 7.7% more than 300 international B2B brands, we provide Revenue Adj. Op. Profit Underlying Growth opportunities to engage, experience and do business via face-to-fa
Slide 43: Informa Connect
Informa Connect Informa Connect is a live events, digital content specialist, connecting professionals with knowledge, £131m (£4m) 3.8% ideas and opportunities. With more than 400 Revenue Adj. Op. Loss Underlying Growth events each year in over 30 countries, it has particular strength in Life Scienc
Slide 44: Informa Tech
Informa Tech Informa Tech informs , educates and connects specialist Technology communities around the £166m £11m 13.9% world. Through more than 50 B2B brands, we Revenue Adj. Op. Profit Underlying Growth provide world-class research, training, events and media for customers to engage, learn and be
Slide 45: Informa Intelligence
Informa Intelligence Informa Intelligence provides specialist data, intelligence and insight to businesses, helping them make better decisions, gain competitive advantage £348m £110m 6.5% Revenue Adj. Op. Profit Underlying Growth and enhance return on investment. Through a range of specialist B2B su
Slide 46: Tax Summary
Tax Summary 2021 2021 Tax ETR £m £m % Reported Profit Before Tax 137.1 48.9 Adjusted for: Intangible asset amortisation 268.4 55.8 Benefit of goodwill amortisation for tax purposes only - (14.2) Impairment – acquisition-related intangible assets 7.9 1.7 Impairment – IFRS 16 right of use assets 11.8
Slide 47: Cash Flow Summary
Cash Flow Summary 2021 2020 £m £m Adjusted operating profit 388.4 266.6 Depreciation of property and equipment 12.7 16.8 Depreciation of right of use assets 24.2 30.3 Software and product development amortisation 40.6 35.8 Share-based payments 15.0 11.2 Loss on disposal of other assets 0.2 0.9 Adjus
Slide 48: Other Adjusting Items
Other Adjusting Items 2021 2020 £m £m Intangible amortisation and impairment 292.5 972.0 Acquisition and integration costs 11.9 49.1 Restructuring and reorganisation costs 6.2 77.6 One-off insurance credit associated with COVID19 (23.6) - Onerous contracts and one-off costs associated with COVID-19
Slide 49: Currency Sensitivity
Currency Sensitivity Average Rates Closing Rates 2021 2020 2021 2020 USD 1.38 1.29 1.35 1.37 The impact of a 1 cent movement in the USD to GBP exchange rate in 2021: Revenue £8m Annual adjusted operating profit £3m Annual adjusted earnings per share 0.1p 2021 Full-Year Results Presentation 49
Slide 50: Balance Sheet Summary
Balance Sheet Summary Restated 31 December 2021 31 December 2020 £m £m Intangibles and goodwill 8,600.6 8,653.9 Property and Equipment 41.5 49.1 Rights of use assets (IFRS 16) 199.3 209.9 Other non-current assets (excluding debt and leases) 75.1 58.7 Current assets (excluding cash and leases) 386.5
Slide 51: 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 52: Thank you
O informa Thank you Informa.com