Slide 1: Interim Results
2023 Interim Results 18 May 2023 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Future plc (the “Company”) and its subsidiaries (togeth
Slide 3: Jon Steinberg, an introduction
Jon Steinberg, an introduction 3
Slide 4: My journey
My journey ● Senior Advisor The Raine Group 2022-2023 ● President USA’s News & Advertising Altice 2019-2022 ● Founder Cheddar News 2016-2022 ● CEO North America Daily Mail 2014-2015 ● President & COO Buzzfeed 2010-2014 ● Strategic partner development manager Google 2007-2009 4
Slide 5: First impressions: even more excited to have joined Future
First impressions: even more excited to have joined Future ● Expert content at the heart of our purpose ● Proven business model focused on profit and cash enables us to navigate the challenging market conditions ● Well-diversified: by content, monetisation and geography ● Superb tech stack: unique,
Slide 6: Financial review
Financial review 6
Slide 7: Our strategic objectives
Our strategic objectives OBJECTIVES ENABLERS PILLARS SUSTAINABLE ORGANIC GROWTH Expert content THE PLATFORM Grow relevant and EFFECT valuable audiences VALUE-CREATING M&A Operating model Diversify and grow monetisation Proprietary technology 7 OPERATING AS A RESPONSIBLE BUSINESS DRIVEN BY PURPOSE, V
Slide 8: How we execute on the strategy
How we execute on the strategy ● STEP 1: Build monetisable audience ● STEP 2: Once sufficient scale, add direct sales team ● STEP 3: Drive premium advertising and leverage the platform Step 1 Step 2 Step 3 CONTENT AMBITION Build Add direct Drive premium MONETISATION OUTCOME/ PROCESS VERTICAL monetis
Slide 9: Audience - diversification of highly valuable audiences maximises growth and improves efficiency
Audience - diversification of highly valuable audiences maximises growth and improves efficiency Strategic objective Diversify audiences Off platform users mix has progressed from a third Our strategy to create diverse to close to half of our total audience with new audiences is working, with direct
Slide 10: Online users benefiting from diversification but remains challenging
Online users* benefiting from diversification but remains challenging Strategic objective Diversify audiences LKN 8m GETs 4m ● Impact of algo with puts and takes across our brands - benefit of diversification with multiple brands per vertical ● GETs (Games, Entertainment and Technology) ■ Tech sites
Slide 11: Leadership positions
Leadership positions* UK US #1 #1 Despite challenging online users Tech Unchanged since Unchanged since March 2022 March 2022 performance, we have maintained or improved our leadership positions in all #1 #4 our key strategic categories Homes Unchanged since +4 since March 2022 March 2022 Women’s #4
Slide 12: Diversification drives resilience - revenue by type
Diversification drives resilience - revenue by type Strategic objective Diversify and drive monetisation % Group’s HY 2023 HY 2022 Reported Organic Revenue revenue £m £m growth growth Advertising & other 33% 132.0 119.8 +10% (15)% Affiliates 33% 133.5 138.8 (4)% (10)% Revenue by type Media 66% 265.5
Slide 13: Diversification drives resilience - revenue by geography & type
Diversification drives resilience - revenue by geography & type Strategic objective Diversify and drive monetisation % Group’s/geo HY 2023 HY 2022 Reported Organic Revenue revenue £m £m growth growth US 41% 166.8 154.4 +8% (17)% Advertising & other 53% 87.7 77.7 +13% (22)% Affiliates 23% 39.0 42.3 (
Slide 14: Value of specialist, intent-led audience in Media
Value of specialist, intent-led audience in MEDIA Strategic objective Diversify and drive monetisation Total Organic variance (%) year-on-year Reported HY 2023 HY 2022 reported variance (%) UK US Online users* 247m 306m (19)% (22)% (24)% Digital advertising £116.0m £108.1m +7% (5)% (23)% revenue Aff
Slide 15: Diversification drives resilience - revenue by verticals
Diversification drives resilience - revenue by verticals Strategic objective Diversify and drive monetisation GETs (Games, Entertainment & % Group’s HY 2023 HY 2022 Reported Organic Technology) impacted by audience Revenue revenue £m £m growth growth decline and challenging market GETs 33% 135.6 156
Slide 16: Model flexed to protect profitability
Model flexed to protect profitability Operating Operating costs costs ● Group operating model supporting profitability ○ Full integration of acquisitions with removal of duplicative costs ○ Energy driving higher inflationary pressures in Magazines COS and salaries ○ Profit pool bonus accrual not rep
Slide 17: Summary P&L
Summary P&L £m HY 2023 HY 2022 YoY Var Revenue 404.7 404.3 - Gross contribution 1 294.8 302.9 (3)% GC Margin 73% 75% (2)ppt Sales, marketing and editorial (120.6) (106.5) (13)% Gross profit after direct costs 174.2 196.4 (11)% Gross profit margin 43% 49% (6)ppt Admin costs & other overheads (32.3) (
Slide 18: Cash flow demonstrating strong conversion of profits
Cash flow demonstrating strong conversion of profits £m HY 2023 HY 2022 Adjusted cash generated before changes in working capital and provisions1 141.0 146.0 Adjusted free cash flow £130.0m, 100% Adjusted movement in working capital conversion of adjusted operating and provisions (4.8) (2.0) profit
Slide 19: Creating value from acquisitions (April 2020)
Creating value from acquisitions HY 2020 HY 2023 CAGR ● Completion (pre-acquisition) ○ April 2020 Revenue £95.2m £80.4m (5)% ● Consideration ○ £140m Media revenue £6.4m £16.4m +37% ● Strategic rationale Adj EBITDA* £15.2m £24.6m +17% ○ Enter Women’s Fashion & Beauty market ○ Bolster our Homes and Li
Slide 20: Creating value from acquisitions (February 2021)
Creating value from acquisitions ● Completion ○ February 2021 ● Consideration ○ £557m ● Strategic rationale ○ Enter Affiliates services market ○ Proprietary voucher technology ○ Increase addressable market beyond car insurance ○ Improved marketing efficiency ○ Leveraged first-party data ● Financials
Slide 21: Value creation from M&A
Value creation from M&A 3 Core EBITDA £20.7m FY 2018 Adjusted EBITDA - as reported Acquired EBITDA £127.6m 2 £148.3m Additional value created £145.5m (organic and inorganic) 1 FY 2022 EBITDA £293.8m 1 21 1 Unaudited pro-forma EBITDA in the period prior to acquisition
Slide 22: Efficient capital allocation
Efficient capital allocation Rigorous assessment to maximise value creation between ➔ Organic investment Consistent cash flow conversion of 95%+ (capex <2% of revenue) (adjusted FCF/AOP) ➔ Strategic M&A (Min. hurdle ROIC>WACC) ➔ Debt repayment ➔ Shareholder returns DISCIPLINED CAPITAL ALLOCATION 22
Slide 23: Outlook: continued challenging macro but focused on driving efficiencies
Outlook: continued challenging macro but focused on driving efficiencies ● The flexibility and diversification of our business model continues to allow us to navigate the tougher macroeconomic backdrop. ● As we look to the second half, we expect the first half trends to continue; with challenging ma
Slide 24: Looking forward
Looking forward 24
Slide 25: Confidence in our proven strategy
Confidence in our proven strategy OBJECTIVES ENABLERS PILLARS SUSTAINABLE ORGANIC GROWTH Expert content THE PLATFORM Grow relevant and EFFECT valuable audiences VALUE-CREATING M&A Operating model Diversify and grow monetisation Proprietary technology 25 OPERATING AS A RESPONSIBLE BUSINESS DRIVEN BY
Slide 26: Confidence in our proven strategy
Confidence in our proven strategy OBJECTIVES ENABLERS PILLARS SUSTAINABLE ORGANIC GROWTH THE PLATFORM Grow relevant and Expert content EFFECT valuable audiences VALUE-CREATING M&A Operating model Diversify and grow monetisation Proprietary technology 26 OPERATING AS A RESPONSIBLE BUSINESS DRIVEN BY
Slide 27: Looking forward
Looking forward Agency & trading relationships, with a US focus Brand & audience building Listening tour As a one-stop-shop (notably in the US) across GETS, LKN, and W&S for advertiser and agency needs Nurturing & developing talent Investment in existing and new talent Investor Business roadshow & d
Slide 28: Navigating challenging market conditions
Navigating challenging market conditions External Challenging market conditions environment Valuable audience with intent Comprehensive and proprietary tech stack driving operating Diversified business leverage model provides natural hedge Our business Leadership positions Content Revenue Geographie
Slide 29: A view of the media landscape
A view of the media landscape ● Media is fluid and ever changing. It is a river, not a pond. ● Always ask “how can we embrace and leverage this change.” ● The AI Demo we unveil today showcases this spirit of innovation 29
Slide 30: Summary
. Su [ i mmary d FUTURE
Slide 31: Excited to be part of Future and drive further opportunities
Summary ● Excited to be part of Future and drive further opportunities: ● Diversified model delivering returns in challenging macro backdrop ● Attractive verticals in growing markets ● Focused on profit and cash with an efficient and agile business model ● Strong balance sheet and cash generation se
Slide 32: Q&A
Q&A 32
Slide 33: Appendix
Appendix 33
Slide 34: Our track record
Our track record +45% CAGR +107% CAGR +61% CAGR +87% CAGR 34 See appendix for definitions
Slide 35: Online users by geographies and major verticals
Online users* by geographies and major verticals Group UK US Total (247m) (19)% (18)% (20)% GETs (163m) (21)% (21)% (22)% Tech (77m) (29)% (29)% (28)% Games & Ent (52m) (24)% (22)% (25)% LKN (74m) (16)% (16)% (16)% Women’s (29m) (1)% (16)% +18% Homes (14m) +12% +10% +15% Knowledge (27m) (30)% (25)%
Slide 36: Consistent strong cash generation provides balance sheet strength
Consistent strong cash generation provides balance sheet strength ● Total facilities at 31 March 2023 of £900m, with headroom of £469.7m ● Average interest rate in the period 6.2% (including the non-utilisation fee on the undrawn debt, 5.6% without). ● 35% of external debt in USD ● Self-imposed leve
Slide 37: Growth through platform effect
Growth through platform effect ongoing investment in highly scalable proprietary technology stack Assets Websites Monetisation Vanilla is our single modular web platform, it has a single content management system Hawk is our our eCommerce service that Tech Services Freelance Staff enables the moneti
Slide 38: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth is defined as the like for like portfolio in the period, including the impact of closures and new launches but excluding HY 2022 acquisitions which have not been acquired for a full financial year and HY 2023 acquisitions, and at constant FX rate