Informa Plc · LSE:INF
Informa — FY2006 Earnings Presentation
40 slides from Informa's earnings presentation, 2007
Slide 1: Global Information Specialist
Global Information Specialist £1 billion+ Out-performing Leveraging synergies Growing strongly
Slide 2: Rapid Growth, Powered Organically
Rapid Growth, Powered Organically • Strong financial performance • Revenue £1039.1 +42% • Adj. OP £219.1m +49% • Integrated business delivers • Organic growth engine • Proforma revenue +13% • Proforma Adj. OP +22% • Extending brands across formats • Expanding global footprint • Good momentum into 20
Slide 3: Extended Global Reach
Extended Global Reach 16% 19% 27% 38% United Kingdom North America Continental Europe Rest of World 3
Slide 4: Maximising Delivery Media
Maximising Delivery Media 3% 23% 39% 13% 22% Events PI Copy sales Subs Advertising Note: Pro-forma 2005 revenue 4
Slide 5: Maximising Delivery Media
Maximising Delivery Media Note: Pro-forma 2005 revenue 5
Slide 6: Financial Highlights
Financial Highlights • Strong growth and momentum • Across all business streams • Across all divisions • Operating margin 21.1% (2005:20.2%) • IIR return exceeds cost of capital • Dividend increase +40% (2005:+22%) • Cash flow conversion 103% (2005:113%) • Net debt £738.4m (2005:£735.4) 6
Slide 7: 2006 Revenue and OP by Division
2006 Revenue and OP by Division Division 2006 2005 Increase Organic Proforma £'m £'m % % % Revenue Academic 295.2 260.5 13 6 10 Professional 372.7 217.8 71 -1 12 Commercial 371.2 251.0 48 16 16 1039.1 729.3 42 8 13 Operating Profit Academic 77.6 65.5 18 10 15 Professional 75.8 45.4 67 10 17 Commerci
Slide 8: US$ Revenues and Costs by Division
US$ Revenues and Costs by Division Revenues Costs % % Academic and Scientific STM 60 50 HSS 60 50 Professional Performance Improvement 95 90 Financial Data Analysis 90 80 Finance Insurance Law and tax 10 10 Commercial Regional Events 15 15 Telecoms & Media 5 0 Maritime & Commodities 15 15 Total Grou
Slide 9: 2006 OP Growth
2006 OP Growth 2006 2005 Increase £’m £’m % Operating Profit 128.3 91.4 40 Amortisation 83.1 47.6 Impairment 0.5 Reorganisation costs 7.2 8.3 Adjusted OP profit 219.1 147.3 49 Adjusted OP margins 21.1 20.2 Adjusted interest -41.0 -31.9 29 Adjusted tax -46.0 -28.9 59 132.1 86.5 53 Shares (millions) 4
Slide 10: Profit Bridge to £219.1m
Profit Bridge to £219.1m 225 220 215 210 205 £23.0m 200 195 £32.3m 190 £8.0m 185 £7.5m 180 175 £0.9m 170 £6.5m £219.1m 165 £8.1m 160 £32.4m 155 £9.2m 150 145 140 £95.4m 135 130 £147.3m 125 120 115 110 2005 IIR Acquisitions FX impact Cost savings Other 2006 Adjusted contribution in 2006 on IIR organi
Slide 11: Cash Flow
Cash Flow Cash Flow 2006 2005 Increase £'m £'m % Operating profit 128.3 91.4 40 Amortisation & Depreciation 96.2 58.0 Movements in working capital -5.1 11.5 Operating cash inflow 219.4 160.9 36 Interest (net) -38.1 -28.2 35 Tax -32.5 -12.2 166 Capex -23.6 -15.2 55 Sale of assets 3.0 0.2 Acquisitions
Slide 12: Proprietary High Value Content
Proprietary High Value Content 12
Slide 13: Publishing: Benefiting from e
Publishing*: Benefiting from e • 39% of revenue, proforma increase of 8% • 60% subscription revenue • 60% corporate, 40% academic • Strong renewal rates and high visibility • Brand roll-outs across formats and geographies • Increased sales and yield through electronic delivery • Revenue synergies wi
Slide 14: Using e to Support and Grow Titles
Using e to Support and Grow Titles 14
Slide 15: Maximising Delivery Media
Maximising Delivery Media Note: Pro-forma 2005 revenue 15
Slide 16: PI: Expanding Internationally
PI: Expanding Internationally • 22% of revenue, proforma increase of 11% • Over 90% revenue renewal, over 100% retained value • Non US revenues up 17% • Asian franchise purchases • Revenue synergies with Publishing and Events 16
Slide 17: Events: Adding Margin and Resilience
Events: Adding Margin and Resilience • 39% of revenue • Proforma +19% • Focus on building Large Scale Events and Exhibitions • Largest 200 events produce c. 70% of events profit • Leveraging LSE brands globally • Continue to mine new topics widely and deeply 17
Slide 18: Marrying Format & Market Expertise
Marrying Format & Market Expertise 18
Slide 19: Academic & Scientific
Academic & Scientific 10% 46% 3% @ Events @ Copy sales Advertising ® Subscriptions
Slide 20: A&S Has Double Digit Growth
A&S Has Double Digit Growth • Proforma adj. OP +15% • Proforma revenue +10% • Margin up to 26.3% • Journals proforma revenue +9% • HSS content increases • New electronic sales model and archives drive yield improvement • Books proforma revenue +12% • Informa Healthcare expands • Organic revenue +12%
Slide 21: Academic & Scientific Outlook 2007
Academic & Scientific Outlook 2007 • Good momentum from acquisitions • Lawrence Erlbaum Associates • Behavioural Science and Education Business • Citeline • Clinical Trials Database • Books and journals electronic revenues continue to build • Leverage more premium content on-line • Electronic archiv
Slide 22: Professional
Professional 1% 16% 1% 61% @ Events eri @ Copy sales ® Subscriptions Advertising
Slide 23: Professional Benefits from IIR
Professional Benefits from IIR • Proforma revenue +12% • Proforma adjusted OP +17% • PI achieves double digit growth • International roll-out of LSEs • US GAIM to the Cayman Islands, over $1m • LSEs from publishing brands • Insurance Day events Franchise • Increased Legal Subscription sales • Ilaw.c
Slide 24: Professional Outlook 2007
Professional Outlook 2007 • PI continue international expansion • Publishing maximise delivery media • Insurance Day LSE • On-line developments • iMoneyNet’s Offshore Money Fund Analyzer • LSE international roll-outs • GAIM Asia 24
Slide 25: Commercial
Commercial 8% 2% @ Events Advertising 85% @ Copy sales ® Subscriptions
Slide 26: Commercial Captures Growth
Commercial Captures Growth • Proforma revenue +16% • Proforma adj. OP +38% • Excellent adj. OP by geography: • Dubai +74% • Germany +13% • Australia benefits from integration • And by sector: • Telecoms +34% • Maritime +35% • Commodities benefits from rising interest in alternative energy sources 26
Slide 27: Commercial Outlook in 2007
Commercial Outlook in 2007 • Telecoms • Media Junction acquisition • Lower 3GSM World Congress reported revenues • Dubai momentum • Arab Health growth • Regional roll-outs: • Cityscape to Singapore, China, Abu Dhabi & India • Maritime leverage of Lloyd’s List brand • Lloydsmiu.com • Lloyd’s Maritime
Slide 28: It's Been a Great Year
It’s Been a Great Year • Bigger AND more profitable • Margins over 21% • A whole year as one company • All divisions and revenue streams growing strongly • Achieving real top line synergy • Using our global footprint to grow faster • Marrying our specialist content to our format expertise to acceler
Slide 29: And It Looks Like It Will Continue
And It Looks Like It Will Continue • Strong start to 2007 • End-year momentum maintained into Q1 • Quality acquisition opportunities • Early 2007 highlights: • Large Scale Events • Commercial and Professional subscriptions • Electronic revenues • New board structure from AGM • Confident of meeting o
Slide 30: Appendices
Appendices informa
Slide 31: Academic & Scientific
Academic & Scientific Academic and Scientific 2006 2005 increase organic proforma £'m £'m % % % Revenue STM 178.7 157.0 14 4 8 HSS 116.5 103.5 13 10 13 295.2 260.5 13 6 10 Adjusted Operating Profit STM 50.6 41.5 22 10 16 HSS 26.9 24.0 12 9 12 77.6 65.5 18 10 15 Adjusted Operating Margin 26.3 25.1 31
Slide 32: Professional
Professional Professional 2006 2005 increase organic proforma £'m £'m % % % Revenue Performance Improvement 225.8 106.2 113 - 11 Financial Data Analysis 63.6 60.8 5 -1 5 Finance Insurance Law and tax 83.3 50.8 64 0 22 372.7 217.8 71 0 12 Adjusted Operating Profit Performance Improvement 34.7 17.6 97
Slide 33: Commercial
Commercial Commercial 2006 2005 increase organic proforma £'m £'m % % % Revenue Regional events 241.1 143.1 68 13 16 Telecoms & Media 64.7 48.4 34 30 24 Maritime & Commodities 65.4 59.5 10 10 10 371.2 251.0 48 16 16 Adjusted Operating Profit Regional events 42.3 18.6 127 14 47 Telecoms & Media 16.1
Slide 34: Proforma Revenue
Proforma Revenue 2006 2005 increase increase £'m £'m £'m % Revenue 1039.1 922.1 117.0 13 PI 225.8 202.6 23.1 11 Subscriptions 241.7 225.2 16.5 7 Copy Sales 133.5 120.6 12.9 11 Advertising 33.7 32.8 1.0 3 Delegates & Conf 404.4 340.9 63.5 19 1039.1 922.1 117.0 34
Slide 35: Proforma Revenue by Geography
Proforma Revenue by Geography 2006 2005 increase Revenue £'m £'m % UK 193.9 172.4 12 US 396.1 358.0 11 CE 279.6 251.5 11 RoW 169.5 140.2 21 1039.1 922.1 35
Slide 36: Proforma Revenue by Division
Proforma Revenue by Division 2006 2005 increase Revenue £'m £'m % Academic 295.2 268.8 10 Professional 372.7 333.5 12 Commercial 371.2 319.8 16 1039.1 922.1 36
Slide 37: Proforma Divisional Revenue Detail
Proforma Divisional Revenue Detail 2006 2005 increase Revenue £'m £'m % Academic STM 178.7 165.3 8 HSS 116.5 103.5 13 295.2 268.8 Professional PI 225.8 204.3 11 FDA 63.6 60.8 5 FILT 83.3 68.4 22 372.7 333.5 Commercial Regional Events 241.0 208.3 16 Telecoms 64.7 52.0 24 MTT and commodities 65.4 59.5
Slide 38: Adjusted OP Proforma
Adjusted OP Proforma 2006 2005 increase Adjusted OP £'m £'m % Academic 77.6 67.5 15 Professional 75.8 64.7 17 Commercial 65.7 47.5 38 219.1 179.7 22 38
Slide 39: Proforma Divisional OP Detail
Proforma Divisional OP Detail 2006 2005 increase Revenue £'m £'m % Academic STM 50.6 43.5 16 HSS 26.9 24.0 12 77.6 67.5 Professional PI 34.7 30.9 12 FDA 19.1 17.9 7 FILT 22.0 15.9 38 75.8 64.7 Commercial Regional Events 42.3 28.8 47 Telecoms 16.2 12.9 25 MTT and commodities 7.3 5.8 26 65.7 47.5 Tota
Slide 40: Summary Balance Sheet
Summary Balance Sheet Summary Balance sheet 2006 2005 increase £'m £'m £'m Goodwill 1125 1123 2 Other intangible assets 921 936 -15 Other non current assets 50 46 4 2096 2105 Inventory 34 31 3 Available for sale assets 39 0 39 Trade and other receivables 191 193 -2 Debt (net) -83 -42 -41 Tax -75 -59