Slide 1: 2016 Full Year Results Presentation
6 MARCH 2017 2016 FULL YEAR RESULTS PRESENTATION 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: Balance & Breadth
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE BALANCE & BREADTH 2016 Full Year Results Presentation 3
Slide 4: Progress and Performance in 2016
PROGRESS AND PERFORMANCE IN 2016 GROWTH +11.0% Revenue, +1.6% Organic Revenue, +6.6% Adjusted Diluted EPS growth RETURNS +4.3% Dividend Per Share, 9.2% Return on Capital Employed CASH Cash conversion of 95% and Free Cash Flow of £305.7m INVESTMENT £52m Net Capex in peak year of GAP; 30+ growth initi
Slide 5: Growth Acceleration Plan: 2014-2016
GROWTH ACCELERATION PLAN: 2014-2016 2014 2015 2016 Focus & Earnings Progress & Performance Balance & Breadth Increased Group Revenue: +0.6% Accelerating Revenue growth: +6.6% Higher Revenue growth: +11.0% Flat Adjusted Profit : -0.2% Strong Adjusted Profit growth: +9.5% Increased Adjusted Profit gro
Slide 6: Current Outlook
CURRENT OUTLOOK GLOBAL A C A D E MI C BUSINESS K N O W L E D GE & PENTON EXHIBITIONS PUBLISHING INTELLIGENCE N E T W O R K IN G I N F O R M A T ION S E R V I C ES Str ong s ta r t to th e S ol i d s t a r t to t h e G o od r e newal Stable s ta r t to th e In tegration a nd year year s e ason year s
Slide 7: The Knowledge and Information Economy
THE KNOWLEDGE AND INFORMATION ECONOMY INFORMA BALANCE AND BREADTH Business Intelligence Global Exhibitions (Penton) (Penton) Specialist Insight & International Platforms for Trade Intelligence and Commerce • Information overload • Value of face-to-face • Data-driven decision customer interaction mak
Slide 8: Building the Capabilities for Growth and Scale
BUILDING THE CAPABILITIES FOR GROWTH AND SCALE 2013 - 2016 Simplified structure oriented around verticals and customers 55%+ recurring and predictable revenue* North American emphasis Consistent and targeted investment for growth Multi-year growth and profit incentives, Group-wide equity participati
Slide 9: Balance and Breadth
BALANCE AND BREADTH REVENUE BY DIVISION REVENUE BY TYPE REVENUE BY GEOGRAPHY Advertising AP UK Copy ROW Sales & Subscription One-offs 2009 2009 2009 E&T PCI Attendee North Exhibitor Continental America Europe Sponsorship Marketing UK Services BI Subscription GE Copy sales ROW 2016 2016 2016 PF Atten
Slide 10: Balance and Breadth in 2017
BALANCE AND BREADTH IN 2017 KNOWLEDGE & Growing markets, international reach, forward visibility INFORMATION ECONOMY 2014-2017 GROWTH Operational fitness, increased capability and improving performance ACCELERATION PLAN INTERNATIONAL EXPANSION Increasing US scale and strengthening positions in key v
Slide 11: Financial Strength
GARETH WRIGHT GROUP FINANCE DIRECTOR FINANCIAL STRENGTH 2016 Full Year Results Presentation 11
Slide 12: 2016 Full Year Results
2016 FULL YEAR RESULTS 11.0% +13.8% 4.3% Increased Adjusted Higher Reported Revenue Enhanced Dividend Operating Profit Per Share +11.0% to £1,345.7m +13.8% to £416.1m (2015: £365.6m) (2015: £1,212.2m) up 4.3% to 19.3p (2015: 18.5p) +6.6% Growth in Adjusted Diluted EPS +6.6% to 42.1p (2015: 39.5p)
Slide 13: Penton Integration Progressing
PENTON INTEGRATION PROGRESSING >1,000 US 2016 New Penton colleagues Combined US based team led by Patrick Delivery of 2016 targets and key Q1 2017 welcomed to Informa Martell period $375m £14m £4m+ Net operating synergies Net annualised operating Penton revenue in 2016 targeted by 2018 synergies rea
Slide 14: Penton Progress and Performance
PENTON PROGRESS AND PERFORMANCE 400 $375m $348m 350 300 250 2016 Performance 200 • Revenue growth = +2% 150 $120m $94m • Print decline = -16% 100 50 • Events and Digital growth = +10% 2013 2016 • Like-for-like revenue growth = -1% Revenue ($m) Adj Operating Profit ($m) • Adjusted Operating Profit gr
Slide 15: Addition of Yacht Promotions Inc
ADDITION OF YACHT PROMOTIONS INC Leading US-based boat show operator • Five leading yachting/boat Exhibitions • Ft Lauderdale: 100k attendees, 820 exhibitors, 1,200 boats Strong portfolio fit • Complements Monaco Yacht Show • Leading position in International Yachting • Further US scale Attractive p
Slide 16: GAP Investment: Examples of Initiatives Now Live
GAP INVESTMENT: EXAMPLES OF INITIATIVES NOW LIVE DIVISION PROJECT OBJECTIVE BENEFITS Upgraded web platform, enhanced Establish community-based, capabilities in marketing automation, data, GLOBAL Digital Platform year-round customer engagement CMS, analytics and campaign management. EXHIBITIONS & Del
Slide 17: Divisional Performance
DIVISIONAL PERFORMANCE 2016 2015 Actual Organic £m £m % % Revenue Global Exhibitions 306.9 262.5 16.9% 8.7% Business Intelligence 290.0 276.8 4.8% 1.1% Academic Publishing 490.4 447.4 9.6% 0.3% Knowledge & Networking 224.4 225.5 -0.5% -4.1% Penton 34.0 - - - Group 1,345.7 1,212.2 11.0% 1.6% Adjusted
Slide 18: Growth in Revenue, Adjusted Profit and Earnings
GROWTH IN REVENUE, ADJUSTED PROFIT AND EARNINGS 2016 2015 £m £m Growth Revenue 1,345.7 1,212.2 • Revenue +11.0% Adjusted Operating Profit 416.1 365.6 Adjusted Operating Margin 30.9% 30.2% • Adjusted Operating Profit +13.8% • Adjusted EPS + 6.6% Net interest (39.6) (25.9) • Dividend Per Share +4.3% A
Slide 19: Strong Free Cash Flow
STRONG FREE CASH FLOW Increased Free Cash Flow despite one-off factors • Working Capital - Academic Publishing timing • Increased capex due to GAP investment £305.7m £303.4m • Normalised cash tax rate • FX and US Private Placing impact • Operating cash conversion 95% Pro-forma Free Cash Flow >£400m
Slide 20: Effective Tax Rate
EFFECTIVE TAX RATE 2016 ADJUSTED TAX RATE 2017 ADJUSTED TAX RATE 21.5%+ 20.0% 18.1% 18.1% HIGHER ADJUSTED RATE IN 2017 REFLECTING US EXPANSION 2016 Full Year Results Presentation 20
Slide 21: Efficient and Flexible Long-Term Financing
EFFICIENT AND FLEXIBLE LONG-TERM FINANCING NET DEBT BRIDGE Robust balance sheet £m • 2.6x gearing at year-end • Addition of Penton for £1.2bn • USD currency impact of c.£150m • Increased dividend on higher share count Equity financing of £715m via Rights Issue Mix of bank debt and US PP debt • $500m
Slide 22: Consistent Operating Discipline
CONSISTENT OPERATING DISCIPLINE RETURN ON CAPITAL EMPLOYED 10.0% Consistent ROCE 9.5% • Addition of Penton 9.2% 9.2% 9.0% 8.9% 8.8% • Peak year of GAP investment 8.5% 8.3% 8.0% 7.5% 7.0% 6.5% 6.0% 2012 2013 2014 2015 2016 IMPROVING TREND IN RETURNS 2016 Full Year Results Presentation 22
Slide 23: GAP Investment and Performance
GAP INVESTMENT AND PERFORMANCE £70-£90m investment programme due to complete in 2017 More than £50m GAP investment to date out of over £70m already approved 30 projects in flight with over 50% launched or approaching deployment On track for 15-20% ROI on GAP investments in 2017 On track for 25-35% R
Slide 24: GAP: Strong Financial Characteristics
GAP: STRONG FINANCIAL CHARACTERISTICS Attractive revenue mix Attractive margins >55% Exhibitions and Subscriptions* 30%+ Strong Free Cash Flow Robust Balance Sheet >£400m annually* 2.6x at end 2016 Consistent returns Low capital intensity 3-5% +4.3% DPS of revenue +9.2% ROCE *Pro-forma,
Slide 25: Balance & Breadth
STEPHEN A. CARTER GROUP CHIEF EXECUTIVE BALANCE & BREADTH 2016 Full Year Results Presentation 25
Slide 26: Financial Balance and Breadth
FINANCIAL BALANCE AND BREADTH REVENUE BY DIVISION REVENUE BY TYPE REVENUE BY GEOGRAPHY Marketing Services UK Subscription BI ROW GE Copy sales 2016 2016 2016 PF PF PF Attendee K&N Continental Europe North America Sponsorship Exhibitor AP 2016 charts are pro-forma estimates, including a full year of
Slide 27: Knowledge & Networking – Focus, Simplify & Grow
KNOWLEDGE & NETWORKING – FOCUS, SIMPLIFY & GROW REVENUE BY TYPE >12,000 in 2009, c.3,000 in 2013, c.1,600 FOCUS events in 2016 - 350 in core verticals Finance Life Sciences TMT 2016PF SIMPLIFY Vertical scale in TMT, Life Sciences and Global Finance Other Regions GROW Top 20 events grew +8% in 2016 R
Slide 28: Knowledge & Networking – Focus, Simplify & Grow
KNOWLEDGE & NETWORKING – FOCUS, SIMPLIFY & GROW Strategic review: >12,000 in 2009, c.3,000 in 2013, c.1,600 FOCUS events in 2016…increased focus on 3 core verticals • Australia • Brazil • Germany • Singapore • Switzerland 12000 Financials: • c£50m revenue 10000 • c10% margin • >15% organic 8000 decl
Slide 29: Knowledge & Networking – Focus, Simplify & Grow
KNOWLEDGE & NETWORKING – FOCUS, SIMPLIFY & GROW REVENUE BY TYPE >12,000 in 2009, c.3,000 in 2013, c.1,600 FOCUS events in 2016 - 350 in core verticals Finance Life Sciences TMT 2016PF SIMPLIFY Vertical scale in TMT, Life Sciences and Global Finance Other Regions GROW Top 20 events grew +8% in 2016 R
Slide 30: K&N Case Study: Growth in Life Sciences Through EBD
K&N CASE STUDY: GROWTH IN LIFE SCIENCES THROUGH EBD 7 $20M+ International events Revenue 50K+ Meetings 34K+ 16K+ Attendees Companies • Attractive vertical – Biotech growth • Unique model – lead generation through Partnering • Effective, targeted and valuable networking • PartneringOne proprietary so
Slide 31: Academic Publishing – Digital Discoverability
ACADEMIC PUBLISHING – DIGITAL DISCOVERABILITY REVENUE BY BUSINESS Consistent organic growth despite ongoing softness GROWTH in US books Journals - HSS Journals - STM RENEWALS High renewal rates and strong growth in Journals 2016 Books - HSS Books - STM Softness in Lower Level textbooks: budgets, BOO
Slide 32: Academic Publishing Balance and Breadth
ACADEMIC PUBLISHING BALANCE AND BREADTH SPECIALIST UPPER LEVEL CONTENT TOP 5 GROWTH CATEGORIES IN BOOKS • Typically final year Undergraduate, Postgraduate and • Politics Professional • Psychology • Consistent growth in Journals • Asian Studies • Stable Upper Level Books in 2016 • Music • Mainly HSS
Slide 33: AP GAP Case Study – Content Discoverability
AP GAP CASE STUDY – CONTENT DISCOVERABILITY 1.5m 3.6m 260m 15m Chapters Articles Site Visits Mobile Visits 2016 Full Year Results Presentation 33
Slide 34: Business Intelligence: The Journey to Growth
BUSINESS INTELLIGENCE: THE JOURNEY TO GROWTH REVENUE BY TYPE Progressive improvement in organic growth: GROWTH 2014: -8.5%; 2015: -1.9%; 2016: +1.1% Subscriptions Marketing Services Steady improvement in value renewal rates to 2016PF RENEWALS c90%; consistent growth in ACV Other GAP Over 20 new/upgr
Slide 35: Business Intelligence: The Journey to Growth
BUSINESS INTELLIGENCE: THE JOURNEY TO GROWTH OPERATING METRICS Snapshot Snapshot 2016 GROWTH RATES BY VERTICAL 2013/14 2016 Annualised Contract Value (ACV) Value Renewal Rate 75- c90% 80% Pre-Expiry Value Renewal Rate <40% 70%+ New Business Value Rate Absolute Pipeline Value TMT BOOKED/DEFERRED REVE
Slide 36: BI GAP Case Study: IEG Vantage in Agribusiness
BI GAP CASE STUDY: IEG VANTAGE IN AGRIBUSINESS From PDF report delivery… …to interactive digital delivery of market intelligence and data Market data downloads Easily incorporate extensive market data into spreadsheets and models at the click of a button Morning Comments Daily market update to stay
Slide 37: BI GAP Case Study: IEG Vantage in Agribusiness
BI GAP CASE STUDY: IEG VANTAGE IN AGRIBUSINESS 12M ROLLING RENEWAL RATE (%) WEEK-ON-WEEK DATA DOWNLOADS 89 1200 88 1000 87 800 86 600 85 400 84 83 200 82 0 “We love the “1000 times better “New portal is • Weekly client visits +40% platform” than before” awesome. Congratulations and • Weekly page vie
Slide 38: Global Exhibitions: Informa's Largest Division
GLOBAL EXHIBITIONS: INFORMA'S LARGEST DIVISION REVENUE BY VERTICAL Fourth consecutive year of strong organic growth; GROWTH >1,100 colleagues including Penton and YPI Construction & RE Health & Nutrition Life Sciences International Yachting Industrial BALANCE Focused international scale in multiple
Slide 39: International Strength in Health & Nutrition
INTERNATIONAL STRENGTH IN HEALTH & NUTRITION GLOBAL MARKET FOR NUTRACEUTICALS • • Large Fast growing $110m+ 10%+ 9 • Broad based revenue growth major exhibitions • International • Fragmented $240bn US FINISHED GOODS 2019 EUROPE/ASIA US INGREDIENTS • Anaheim +7% • Personalised $160bn health/nutrition
Slide 40: Strengthening Our Position in Growth Verticals
STRENGTHENING OUR POSITION IN GROWTH VERTICALS The Features of Attractive Ver ticals in Events B2B Fragmented High Value International Growing Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate 2016 Full Year Results Presentation 40
Slide 41: Strengthening Our Position in Growth Verticals
STRENGTHENING OUR POSITION IN GROWTH VERTICALS The Features of Attractive Ver ticals in Events B2B Fragmented High Value International Growing Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate $0.5m-1m revenue $1m-5m revenue $5m-10m revenue $10m-20m reven
Slide 42: North American Balance and Breadth
NORTH AMERICAN BALANCE AND BREADTH $1.1bn+ revenue $340m+ $350m+ $350m+ COUNTRY HQ AP revenue GE revenue BI revenue VERTICALS 3000+ 80+ 50%+ 60%+ CONTENT Colleagues exhibitions Group sales Group profit SHARED SERVICES 2016 Full Year Results Presentation 42
Slide 43: Operating Breadth & Balance
OPERATING BREADTH & BALANCE Common systems and platforms; investment in upgraded ERP platform TECHNOLOGY for growth and scale Operational fitness resulting in increased productivity: PRODUCTIVITY £200k+ revenue per head in 2016 versus £170k three years ago Investment in leadership development, train
Slide 44: Outlook for 2017
OUTLOOK FOR 2017 A further year of growth in revenue, adjusted profit, INFORMA GROUP earnings, dividends and cash flow GLOBAL EXHIBITIONS Scale, growth and strength in verticals Improving growth, Penton combination and BUSINESS INTELLIGENCE investment in verticals Measured integration into Divisions
Slide 45: GAP Delivery: Growth, Capability, Scale
GAP DELIVERY: GROWTH, CAPABILITY, SCALE Sustainable Strong Cash performance Generation Robust Underlying International Growth Scale Predictable and Digital and Data Recurring Revenue Capability B2B Brand and Robust Balance Sheet Marketing Capability 2016 Full Year Results Presentation 45
Slide 46: Informa Group Investor Day 2017 – London, UK
INFORMA GROUP INVESTOR DAY 2017 – LONDON, UK Please join Stephen A. Carter, Group CEO and Gareth Wright, Group FD on 15 June 2017 for: 2016 Full Year Results Presentation 46
Slide 47: Informa Plc 2016 Full Year Results: Balance & Breadth
INFORMA PLC 2016 FULL YEAR RESULTS BALANCE & BREADTH 47
Slide 48: Appendices
APPENDICES 2016 Full Year Results Presentation 48
Slide 49: Vertical Balance and Breadth
VERTICAL BALANCE AND BREADTH Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate Science, Tech Humanities & Beauty & Aesthetics Pop Culture Transportation & Medical Social Science Anderson Books 2016 Full Year Results Presentation 49
Slide 50: Balance Sheet Summary
BALANCE SHEET SUMMARY 2016 2015 £m £m Intangibles and goodwill 4,479.4 2,676.3 Fixed assets 24.1 17.3 Other non-current assets 16.8 38.3 Current assets 441.6 293.6 Deferred income (561.5) (385.7) Other current liabilities (311.2) (262.3) Net debt (1,485.6) (895.6) Other non-current liabilities (415.
Slide 51: Tax Summary
TAX SUMMARY Profit/(loss) Tax ETR £m £m % Reported Profit Before Tax 178.3 (4.8) 2.7% Adjusted for: Restructuring and reorganization costs (7.2) 1.9 Intangible asset amortisation (116.7) 41.3 Acquisition and integration costs (33.1) 4.5 Impairments (67.7) - Subsequent re-measurement of contingent co
Slide 52: Operating Cash Flow Summary
OPERATING CASH FLOW SUMMARY 2016 2015 £m £m Adjusted operating profit 416.1 365.6 Depreciation of property and equipment 6.5 6.1 Software and product development amortisation 14.6 12.8 Share-based payments 3.9 2.6 Adjusted share of joint venture results (0.8) 0.1 Loss on disposal of other assets 0.1
Slide 53: Other Adjusting Items
OTHER ADJUSTING ITEMS 2016 2015 £m £m Intangible asset amortisation 116.7 99.5 Impairment 67.7 13.9 Restructuring and reorganisation 7.2 13.7 Acquisition and integration 33.1 2.3 Subsequent re-measurement of contingent consideration (7.4) (0.3) Adjusting items in operating profit 217.3 129.1 Loss/(p
Slide 54: Currency
CURRENCY Major currencies Average Rates Closing Rates 2016 2015 2016 2015 USD 1.36 1.53 1.23 1.48 EUR 1.23 1.38 1.17 1.36 Impact of a 1 cent movement in 2017 USD £m EUR £m Revenue 6.5 0.7 Operating Profit 2.9 0.3 Net Debt 10.3 0.4 2016 Full Year Results Presentation 54
Slide 55: Sustainability
SUSTAINABILITY ENVIRONMENT CYBER SECURITY SUPPLY CHAIN HEALTH & SAFETY PURPOSE COMMUNITY “Informa exists to connect people and businesses with knowledge so they can make better decisions” CONTENT DISCLOSURE DIVERSITY & ETHICS KNOWLEDGE INCLUSION 2016 Full Year Results Presentation 55
Slide 56: 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 57: 5 Howick Place London SW1P 1WG
5 HOWICK PLACE LONDON SW1P 1WG +44 (0) 20 7017 5000 info@informa.com www.informa.com