Slide 1: 2010 Full Year Results
Informa Bringing Knowledge to Life Quality Business Positioned for Growth 2010 Full Year Results 22 February 2011 Peter Rigby 1 Adam Walker
Slide 2: Strong financial performance
Informa Strong financial performance Record adjusted operating profit Strengthened portfolio Managed cycle very well Model remains strong & highly cash generative 2
Slide 3: Operational Highlights
Operational Highlights High quality subscription revenues Digital excellence Resilient events Emerging Market exposure New products & organic growth 3
Slide 4: Financial Highlights
Financial Highlights Organic revenue growth Adjusted organic operating profit growth of 1.8% Adjusted operating profit margin increased to 25.5% Operating cash flow of £319.8m – adjusted cash conversion of 102% Free cash flow of £231.4m up 2.8% Net debt to EBITDA within target range Adjusted EPS up
Slide 5: Income Statement
Income Statement 2010 2009 £m £m Revenue 1,226.5 1,221.7 Adjusted Operating Profit 313.2 309.5 Amortisation -133.8 -129.7 Other adjusting items -15.4 -34.1 Operating Profit 164.0 145.7 Net interest -39.0 -48.2 Loss on disposal -1.0 Tax -26.1 10.0 Profit for the Year 98.9 106.5 Adjusted EPS (diluted)
Slide 6: Divisional Summary
Divisional Summary 2010 2009 Actual Organic Revenue £m £m % % Academic Information 310.2 294.4 5.4% 4.7% PCI 364.9 368.3 -0.9% -0.9% Events and Training 551.4 559.0 -1.4% -1.1% Total 1,226.5 1,221.7 0.4% 0.4% Adjusted Operating Profit Academic Information 109.3 104.3 4.8% 4.5% PCI 110.4 118.7 -7.0%
Slide 7: Operating Cash Flow
Operating Cash Flow 2010 2009 £m £m Adjusted operating profit 313.2 309.5 Depreciation and software amortisation 24.0 22.7 Share based payments 2.1 0.6 EBITDA 339.3 332.8 Net capital expenditure -27.2 -22.0 Working capital movement 7.7 14.2 Operating cash flow 319.8 325.0 Adjusted cash conversion 10
Slide 8: Net Funds Flow
Net Funds Flow 2010 2009 £m £m Operating cash flow 319.8 325.0 Restructuring and reorganisation -14.1 -26.3 Net interest -36.8 -46.4 Taxation -37.5 -27.3 Free cash flow 231.4 225.0 Acquisitions less disposals -53.3 -38.5 Dividends -75.0 -39.4 Net issue of shares 4.6 252.3 Net funds flow 107.7 399.4
Slide 9: Financing Costs
Financing Costs Highly successful Private Placement arranged in 2010 Supports strength of business - lowers cost of debt Covenants Refinancing expected in H1 High proportion of fixed rate debt throughout 2011 9
Slide 10: Quality of Earnings
Quality of Earnings Booked and deferred income 33% of FY expected revenues Deferred income up 9% (excl. IPEX) Robust renewal rates Focus on growing larger events 10
Slide 11: High Quality Subscription Income
High Quality Subscription Income 65% of publishing revenue from subscriptions 71 new academic journals Renewal rates remain strong Drive to higher value subscription working Financial subscriptions stabilised Academic Journal online usage levels up 40% 11
Slide 12: Digital Excellence
Digital Excellence 74% of publishing revenue digital (72% 2009) PCI – 88% of products digital (84% 2009) AI – 46% increase in digital books revenue Digital developments delivering financial results Extensive use of social media and digital partners 12
Slide 13: Resilient Events
Resilient Events Increasingly high quality earnings Operational gearing Geo-cloning successes in many areas Focus for acquisitions growth or launches Increased number of exhibitions 10% more events over £0.5m revenue 13
Slide 14: Emerging Markets Exposure
Emerging Markets Exposure BRIC revenue growth of 30% (by customer location) Total Emerging Market growth of 13% Emerging Market revenues now 12% of total Academic revenue growth 28% (now 13% of total) Product expansion into Emerging Markets 14
Slide 15: Organic Growth
Organic Growth Continued focus on innovation – supports premium pricing New product launches Leverage expertise across markets Geo–cloning of events Sharing best practice Boosting sales teams 15
Slide 16: Outlook
Outlook Degree of global uncertainty remains Increasingly strong and well positioned portfolio Good momentum into the new year Stronger business than a year ago Group trading in line with Board expectations 16
Slide 17: Appendices
Appendices informa
Slide 18: Balance Sheet
Balance Sheet 2010 2009 £m £m Intangibles and Goodwill 2,800.7 2,804.9 Fixed Assets 19.0 21.4 Other Non-Current Assets 1.2 32.8 Current Assets 271.7 263.1 Other Current Liabilities -684.6 -656.6 Net Debt -779.1 -872.6 Other Non-Current Liabilities -228.0 -263.5 1,400.9 1,329.5 18
Slide 19: Tax
Tax Tax Effective PBT Charge tax rate £m £m % Tax on statutory results 125.0 26.1 20.9 Adjusted for: Restructuring costs 8.3 2.0 Intangible asset amortisation 133.8 34.7 De-designation of hedge accounting 1.1 0.3 Excess interest on early repayment of syndicated loans 1.1 0.3 Deferred tax credit aris
Slide 20: Foreign Currency
Foreign Currency Average Rates Closing Rates 2010 2009 2010 2009 USD 1.5447 1.5566 1.5472 1.6114 EUR 1.1676 1.1196 1.1586 1.1180 20
Slide 21: Academic Information
Academic Information 2010 2009 Actual Organic £m £m % % Revenue 310.2 294.4 5.4% 4.7% Adjusted Operating Profit 109.3 104.3 4.8% 4.5% Adjusted Operating Margin 35.2% 35.4% 21
Slide 22: Professional and Commercial Information
Professional and Commercial Information 2010 2009 Actual Organic £m £m % % Revenue 364.9 368.3 -0.9% -0.9% Adjusted Operating Profit 110.4 118.7 -7.0% -6.5% Adjusted Operating Margin 30.3% 32.2% 22
Slide 23: Events and Training
Events and Training 2010 2009 Actual Organic £m £m % % Revenue Europe 248.5 242.4 2.5% 4.1% US 181.3 201.1 -9.8% -10.1% Rest of World 121.6 115.5 5.3% 3.6% Total 551.4 559.0 -1.4% -1.1% Adjusted Operating Profit Europe 45.1 40.1 12.5% 15.3% US 23.5 27.6 -14.9% -16.4% Rest of World 24.9 18.8 32.4% 39
Slide 24: Revenue Distribution
Revenue Distribution Revenue by Type £m Revenue by Type % @ Subscriptions @ United Kindom @ Delegates lm Copy sales m North America @ Exhibitions = Continental Europe m Rest of World @ Sponsorship ™ Consulting @ Advertising informa
Slide 25: Deferred Income
Deferred Income 2010 2009 Actual Organic £m £m % % Publishing 205.2 186.0 9% 9% Events (excl. IPEX) 102.5 93.1 10% 7% 25
Slide 26: Return on Investment
Return on Investment Rigorous acquisition criteria and process Acquisitions in line with core strategy 2010 2009 2008 ROCE 8.8% 8.8% 8.1% 2009 Acquisition ROI 18.9% ROI : calculated using total consideration (paid or otherwise) and first full calendar year’s profit ROCE: ((OP + interest income + adj
Slide 27: Operating adjusting items
Operating adjusting items 2010 2009 £m £m Restructuring 8.3 34.1 Impairment 5.0 - Acquisition costs 1.3 - Remeasurement of contingent consideration 0.8 - Intangible amortisation 133.8 129.7 Total 149.2 163.8 27