Slide 1: 2014 Interim Results Presentation
2014 Interim Results Presentation 29th July 2014 1
Slide 2: Measured change
Stephen A. Carter Group Chief Executive Measured change 2
Slide 3: 2014 Interim results agenda
2014 Interim results agenda Measured Change New Divisional Operating Model Strengthening Executive Management Maintaining Operating Discipline – H1 2014 Financials Market Attractiveness Divisional Structure Targeted Acquisitions The Growth Acceleration Plan 3
Slide 4: Business review and operational planning
Business review and operational planning Review Team Programme Director Steering Committee Portfolio Analyst Project Manager IT Specialist Group Director of Portfolio Analyst Global Ops Exec Organisation Specialist CEO Strategy Market Business Capabilities Knowledge Functional Group AP Division Anal
Slide 5: Business review and operational planning
Business review and operational planning 5
Slide 6: New Divisional operating model
New Divisional operating model Simplify lines of accountability and authority Remove internal and international boundaries and barriers Create greater focus around markets and customers Define clear lines of responsibility for Group functions versus Operational Business Knowledge Academic Global Bus
Slide 7: Strengthened Executive Management
Strengthened Executive Management Group CEO Divisional CEO Group CFO Academic Publishing Director Investor Relations, Divisional CEO Corporate Comms & Brand Business Intelligence Executive Management Team Divisional CEO Director Strategy, Business Global Exhibitions Planning & M&A Director of Talent
Slide 8: Maintaining operating discipline
Gareth Wright Chief Financial Officer Maintaining operating discipline 8
Slide 9: 2014 Interim results summary
2014 Interim results summary A robust Group trading performance Organic revenue growth 1.9% Adjusted operating profit 4.5% to £166.7m Adjusted EPS up 6.9% to 20.1p Maintained interim dividend at 6.4p Healthy balance sheet Targeted acquisition investment Full year expectations unchang
Slide 10: Divisional summary
Divisional summary Revenue H1 2014 £m H1 20131 £m Actual % Organic % Academic Publishing 164.3 164.7 (0.2) 3.8 Business Intelligence 161.4 171.0 (5.6) (6.6) Global Events 243.9 228.3 6.8 7.0 Group total 569.6 564.0 1.0 1.9 Adjusted Operating Profit Academic Publishing 52.8 54.0 (2.2) 3.0 Business In
Slide 11: Income statement
Income statement H1 2014 £m H1 20132 £m Revenue 569.6 564.0 Adjusted operating profit 166.7 159.5 Intangible asset amortisation1 (45.8) (57.4) Other adjusting items (8.6) (11.5) Operating profit 112.3 90.6 Net interest (11.6) (13.8) Loss on disposal (0.5) (3.0) Share of results of joint ventures - 0
Slide 12: Operating cash flow
Operating cash flow H1 2014 £m H1 20131 £m Adjusted operating profit from continuing operations 166.7 159.5 Depreciation of PP&E 3.1 3.3 Amortisation 6.0 6.4 Share-based payments 0.7 1.6 EBITDA from continuing operations 176.5 170.8 Net capital expenditure (7.0) (7.4) Working capital movement (60.9)
Slide 13: Net debt movement
Net debt movement H1 2014 £m H1 20131 £m Net debt at 1 January (782.6) (802.4) Free cash flow 64.7 52.0 Dividends (75.4) (75.3) Net acquisition spend (15.8) (60.8) Operating cash flow of discontinued operations (2.8) 1.1 Non-cash items (0.5) (0.5) Foreign exchange 17.6 (37.5) Net debt at 30 June (79
Slide 14: Balance sheet summary
Balance sheet summary H1 2014 £m H1 2013 £m Intangibles and goodwill 2,327.7 2,493.5 Fixed assets 16.0 18.2 Other non-current assets 40.1 23.3 Current assets 266.0 267.0 Net assets held for sale - 78.8 Deferred income (284.3) (294.3) Other current liabilities (230.2) (257.5) Net debt (794.8) (923.4)
Slide 15: Operational fitness
Operational fitness Organisational Product Refresh International Market Efficiency Expansion Internal Engagement Operational Talent Enhanced Group Services → 15
Slide 16: Maintaining operating discipline
Maintaining operating discipline Enhanced Group Services Operational Simplification Consolidation of Shared Service Operating centre for Asia opened in Centres to 3 hubs Shanghai Improve effectiveness and efficiency Single business and platform in of Shared Service Centre activities TMT: Ovu
Slide 17: Accelerating growth
Stephen A. Carter Group Chief Executive Accelerating growth
Slide 18: The Knowledge & Information Economy
The Knowledge & Information Economy 69m people 2.1m US tradeshow attendees The number of LinkedIn in 2013 Community Groups in 2013 3ZB 40ZB $4.5bn 2012 2020 Expenditure by US Association of Research Libraries in 2011-2012 Amount of data worldwide 18
Slide 19: Market attractiveness
Market attractiveness Market Category Market Size Market Growth Competitive Environment Business & Professional • Strength in established brands Information & £65bn 3-5% Intelligence • Competition specific to sub-verticals Academic Books & • Stability for larger publishers Journals £30bn 2-3% • Othe
Slide 20: Portfolio discipline
Portfolio discipline Knowledge & Information Economy…Informa well positioned as a Group Market characteristics…the features and functions of growth Measured change…manage the transition and maintain operating focus Operational fitness…drive simplification and efficiency Portfolio discipline…process
Slide 21: Divisional structure – emerging action list
Divisional structure – emerging action list Academic Publishing Business Intelligence Knowledge & Networking Global Exhibitions Mission Consolidate strong market Return to growth and Explore & exploit strength in Accelerate growth in target positions accelerate via differential Communities g
Slide 22: Divisional structure – emerging action list
Divisional structure – emerging action list Significant market positions in Academic Publishing Business Intelligence Knowledge & Networking large and growing marketsGlobal : Exhibitions Drug development Mission Consolidate strong market Return to growth and Explore & exploit strength in
Slide 23: Targeted acquisitions – Global Exhibitions
Targeted acquisitions – Global Exhibitions Vertical Consolidation Geographical Expansion Geo-Cloning Health & Nutrition US FanExpo Beauty China Vitafoods Hobbyist/Fans Canada Anti-Aging Medicine Property & Real Estate Brazil Cityscape 23
Slide 24: Measured investment programme 2015 – 2017
Measured investment programme 2015 – 2017 £m 45 40 £60m - £90m phased over 3 years 35 30 70% - 90% capital expenditure 25 Peak Group margin impact 150 – 250bps 20 15 Largest investment into Business Intelligence 10 5 Programme management control 0 Production CRM Back Office/ People Other a
Slide 25: The Growth Acceleration Plan
The Growth Acceleration Plan Focus Result Simplification Superior Priority Restructure for returns to growth and Management markets shareholders scale in priority markets Strengthen Leadership management capability Measured Change…Manage Enhanced Transition…Maintain Operating Discipline growth and O
Slide 26: Thank you
Thank you informa
Slide 27: Appendices
Appendices . informa
Slide 28: Tax
Tax Profits £m Tax £m ETR % Statutory results* 100.2 20.7 20.7% Adjusted for: Restructuring and reorganisation costs 6.8 1.1 Acquisition related costs 0.1 - Intangible asset amortisation 45.8 10.8 Subsequent re-measurement of contingent consideration 1.7 - Loss on disposal of business 0.5 - Adjusted
Slide 29: Other adjusting items
Other adjusting items H1 2014 £m H1 2013 £m Amortisation of intangible assets 45.8 57.4 Restructuring and reorganisation costs 6.8 7.3 Acquisition related costs 0.1 4.2 Subsequent re-measurement of contingent consideration 1.7 - Total 54.4 68.9 29
Slide 30: Deferred income
Deferred income H1 2014 £m H1 2013 £m Actual % Constant Currency % Academic Publishing 74.8 81.0 (7.7) (1.9) Business Intelligence 96.6 92.3 4.7 8.8 Global Events 112.9 121.0 (6.7) 0.9 Group total 284.3 294.3 (3.4) 2.7 30
Slide 31: Currency
Currency Major currencies Average Rates Closing Rates H1 2014 H1 2013 June 2014 June 2013 USD 1.6690 1.5422 1.7017 1.5249 EUR 1.2173 1.1767 1.2463 1.1681 Impact of a 1 cent movement on full year financials USD £m EUR £m Revenue 3.1 0.9 Operating Profit 1.4 0.3 Net Debt 3.3 0.3 31
Slide 32: 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 (%) 2014 2013 2012 2011 2010 2009 Group ROCE 9.0 9.1 9.2 9.0 8.8 8.8 ROI is defined as tax-affected Adj
Slide 33: Sponsored ADR program
Sponsored ADR program 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 Lance Miller T