Slide 1: Full Year Results Presentation
11 FEBRUARY 2016 FULL YEAR RESULTS PRESENTATION
Slide 2: Stephen A. Carter, Group Chief Executive
STEPHEN A. CARTER Group Chief Executive FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 2
Slide 3: 2015: A Year of Progress and Performance
2015: A Year of Progress and Performance PROGRESS Portfolio… increased focus through selective disposals Investment… over 20 organic initiatives launched Structure… further simplification of operating model Acquisitions… continued US expansion; strength in execution and integration Funding… discipli
Slide 4: 2015: A Year of Progress and Performance
2015: A Year of Progress and Performance PERFORMANCE +6.6% Accelerating revenue growth… +9.5% Strong adjusted operating profit growth… +4.6% Growth in adjusted earnings per share… +30% Improving free cash flow growth… +4% Increased minimum dividend commitment… Growth in revenue, earnings, free cash
Slide 5: 2015/2016 Macro and Geo-Political Challenges
2015/2016 Macro and Geo-Political Challenges CURRENCY FLUCTATIONS ENERGY & BRAZILIAN RESOURCES RECESSION VOLATILITY CHINA CHANGES IRAN SANCTIONS RUSSIAN TERRORISM ECONOMY THREAT EBOLA…ZIKA BREXIT CONTINENTIAL US ELECTIONS EUROPE LOW GROWTH FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 5
Slide 6: The Knowledge & Information Economy
The Knowledge & Information Economy FUNDAMENTAL STRENGTHS OF INFORMA >50% revenue Niche markets Group portfolio International reach predictable Strong cash conversion Specialist learning Content library US strength and balance sheet Shared services M&A execution and Value of face-to-face Digital pla
Slide 7: 2015: Divisional Snapshot
2015: Divisional Snapshot Global Exhibitions Academic Publishing 27% Group adjusted profit 45% Group adjusted profit • Further international expansion, particularly in US • Proactive investment in deepening content library • Appointment of Charlie McCurdy as Chief Executive • Acquisitions of Ashgate
Slide 8: 2015: Divisional Snapshot
2015: Divisional Snapshot Business Intelligence Knowledge & Networking 17% Group adjusted profit 11% Group adjusted profit • Simplified operating structure, oriented around five verticals: • Focus on three core verticals of: Pharma, Maritime, AgriBusiness, Finance and TMT Life Sciences, Finance and
Slide 9: Growing Branded Events / Exhibitions Portfolio
Growing Branded Events / Exhibitions Portfolio Aesthetic & Anti Ageing Africa Com Annual Energy Conference Arab Health Medicine World Congress AusRAIL PLUS BioEurope BioEurope Spring BioProcess International BioTech Showcase Broadband World Forum China Beauty Cityscape Abu Dhabi Critical Communicati
Slide 10: Content Depth in Specialist Books and Journals Categories
Content Depth in Specialist Books and Journals Categories Books Journals Business & Management Allied & Public Health Engineering Arts & Humanities Behavioural Sciences & Language & Linguistics Social Care 2013-2015: Biological, Environmental Maths & Statistics and Earth Sciences JOURNAL ARTICLES >2
Slide 11: Specialist Brands in Business Intelligence Niches
Specialist Brands in Business Intelligence Niches Agribusiness Pharma Intelligence Intelligence Fertecon BioMed Tracker Snapshot Snapshot 2013/14 2015 % of revenue from Philips McDougal Citeline subscriptions 87% 88% Annualised Contract Value (ACV) Financial Intelligence Datamonitor Healthcare Value
Slide 12: Increasing Predictability and International Breadth
Increasing Predictability and International Breadth REVENUE BY GEOGRAPHY REVENUE BY TYPE 2015 2015 UK 12% SUBSCRIPTIONS 38% CONTINENTAL EUROPE 18% EXHIBITOR 20% NORTH AMERICA 42% ATTENDEE 13% REST OF WORLD 28% UNIT SALES 21% SPONSORSHIP & ADVERTISING 8% FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 201
Slide 13: 2014-2017 Growth Acceleration Plan
2014-2017 Growth Acceleration Plan Growth Acceleration Plan GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy • 4 Operating Divisions • EMT established • Consumer Info disposal • Construction & Real • £70-90m programme • Renegot
Slide 14: Gareth Wright, Group Finance Director
GARETH WRIGHT Group Finance Director FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 14
Slide 15: 2015 – A Year of Progress and Performance
2015 – A Year of Progress and Performance Improving organic growth GAP on budget and on schedule - RETURNS - VISIBILITY Strong cash generation - CAPABILITY - DISCIPLINE Increased funding flexibility - FIREPOWER Strengthened Higher minimum controls and corporate position dividend commitment
Slide 16: Summary of 2015 Financials
Summary of 2015 Financials • Organic Revenue Growth: +1.0% or +1.5% adjusted for non-annual events • Reported Revenue Growth: +6.6% to £1,212.2m revenue (2014: £1,137.0m) • Strong Adjusted Operating Profit: +9.5% to £365.6m (2014: £334.0m) • Growth in Adjusted Diluted EPS: +4.6% to 42.9p (2014: 41.0
Slide 17: Divisional Overview
Divisional Overview Year-on-Year Year-on-Year 2015 2014 Growth Organic Growth £m £m % % Revenue: Academic Publishing 447.4 408.9 9.4% 1.6% Business Intelligence 276.8 281.7 (1.7%) (1.9%) Global Exhibitions 262.5 200.2 31.1% 10.5% Knowledge & Networking 225.5 246.2 (8.4%) (4.2%) Group 1,212.2 1,137.0
Slide 18: Strong Profit Growth
Strong Profit Growth £365.6m £m £334.0m FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 *Ex-GAP 18
Slide 19: Income Statement
Income Statement FY 2015 FY 2014 £m £m Revenue 1,212.2 1,137.0 Adjusted Operating Profit before JVs 365.7 334.1 Share of results of JVs (0.1) (0.1) Adjusted Operating Profit 365.6 334.0 Adjusted Operating margin 30.2% 29.4% Net interest (25.9) (24.4) Adjusted Profit Before Tax 339.7 309.6 Adjusting
Slide 20: Improving Free Cash Flow
Improving Free Cash Flow £301.1m • Cash conversion >100% • Improving Subscription revenue in BI £m £232.5m • Expansion of Exhibitions portfolio • Divisional CFO cash flow focus • Relocation and strengthened Group Treasury function FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 20
Slide 21: Net Debt Movement
Net Debt Movement FY 2015 FY 2014 £m £m Net debt at 1 January (876.2) (782.6) Free cash flow 301.1 232.5 Dividends paid to shareholders (126.0) (114.0) Dividends paid to non-controlling interest (0.5) (0.9) Acquisitions less disposals (149.1) (372.8) Net shares (acquired) / issued (0.4) 204.1 Non-ca
Slide 22: Balance Sheet Strength
Balance Sheet Strength Maturity Profile 450 400 • Increased Funding flexibility 350 300 o RCF extension 250 o $250m US PP notes issued 200 150 • Zero pension deficit funding 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bank Loan (Drawn) * Private Placements Balanced mix of financi
Slide 23: GAP Investment Programme By Numbers
GAP Investment Programme By Numbers c£90m c£25m c£36m Total Programme Cash invested to date Approved to invest 24 c£6m c75% Projects launched P&L impact in 2015 Capex v Opex in 2015 35-40 15-20% 25-35% Total number of projects 2017 forecast ROI* 2018 forecast ROI* * ROI = Net P&L impact (Benefits –
Slide 24: GAP Investment Programme – Project Profile
GAP Investment Programme – Project Profile Product Development Customer Value Proposition Talent & Capabilities Knowledge & Networking Business Intelligence Knowledge & Networking Interactive digital • New revenue Transform customer • Improved Digital marketing • Expanded pool content streams engage
Slide 25: 2015 – A Year of Progress and Performance
2015 – A Year of Progress and Performance Improving organic growth GAP on budget and on schedule - RETURNS - VISIBILITY Strong cash generation - CAPABILITY - DISCIPLINE Increased funding flexibility - FIREPOWER Strengthened Higher minimum controls and corporate position dividend commitment
Slide 26: Investor Communication Schedule
Investor Communication Schedule Q1 Q2 Q3 Q4 2015 FY Results AGM Statement* 2016 H1 Results 9M Trading Update (11 Feb) (19 May) (28 July) (Nov) 2016 Investor Day: Business Intelligence and Knowledge & Networking * The Group will not be releasing a separate Q1 Trading Update but will make a comment on
Slide 27: Stephen A. Carter, Group Chief Executive
STEPHEN A. CARTER Group Chief Executive FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016
Slide 28: 2014-2017 Growth Acceleration Plan
2014-2017 Growth Acceleration Plan Growth Acceleration Plan GAP GAP GAP GAP GAP GAP Operating Management Portfolio Acquisition Investment Funding Structure Model Management Strategy • 4 Operating Divisions • EMT established • Consumer Info disposal • Construction & Real • £70-90m programme • Renegot
Slide 29: Investment in Talent and Technology
Investment In Talent 25:75 Structure >200 Years % mix of new versus Senior Management Category experience experienced Top 150 Teams established in all 4 within the Senior managers over last 3 years Operating Divisions plus Leadership Group Global Support Technology Board Millennials CTOs appointed i
Slide 30: Focused Portfolio Management
Focused Portfolio Management BUSINESS INTELLIGENCE DIVISION • Transfer out of WPA and Learning to • Focus on five core K&N, and Medical Journals to AP verticals • Exit from Consumer Information • Focus on Intelligence businesses for £25m Products • Sale of InsuranceIQ • Improved growth profile KNOWL
Slide 31: Vertical Strength - Targeted Acquisitions
Vertical Strength - Targeted Acquisitions 2014 / 2015 CONSTRUCTION HEALTH & BEAUTY & POP SCIENCE, TECH HUMANITIES & & REAL ESTATE NUTRITION AESTHETICS CULTURE & MEDICAL SOCIAL SCIENCE Vegas Cosmetic Show Brazil Aesthetic Anderson Books Medicine Hanley Wood Exhibitions Anderson Book List • Acquired i
Slide 32: Growing Presence In North America
Growing Presence In North America >$350m >$150m Revenue in Revenue in Global Academic Publishing Exhibitions 5 Key locations >$215m 42% Revenue in Business Intelligence Group revenue >200 >2,000 $0.8bn Number of events held annually Number of Revenue colleagues $60m Revenue in Knowledge & Networking
Slide 33: 2014-2017 Growth Acceleration Plan: Improved returns for shareholders
2014-2017 Growth Acceleration Plan Improved returns for shareholders Consistent organic growth across all Operating Divisions Balanced portfolio positioned for growth and scale Measured Change to Accelerated Change…Disciplined Delivery FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 33
Slide 34: Summary of 2015 Full Year Results
Summary of 2015 Full Year Results • Growth in Revenue, Profit and Free Cash flow • Increased minimum Dividend commitment from +2% to +4% in 2016 and 2017 • Streamlined portfolio following selective disposals • GAP on schedule and on budget • Investment in Product Platforms, Customer Insight and Data
Slide 35: What to Expect in 2016 – The Delivery Year
What to Expect in 2016 – The Delivery Year ORGANIC Further improvement in organic revenue growth Another year of growth in Revenue, Earnings and Free EARNINGS Cash Flow Minimum growth in Dividends Per Share of +4% DIVIDEND (2016/2017) ACQUISITIONS Further targeted expansion and internationalisation
Slide 36: Appendix
APPENDIX FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016 36
Slide 37: Balance Sheet Summary
Balance Sheet Summary FY 2015 FY 2014 £m £m Intangibles and goodwill 2,677.8 2,564.1 Fixed assets 17.3 17.5 Other non-current assets 38.0 31.1 Current assets 292.1 267.6 Deferred income (385.7) (342.9) Other current liabilities (262.3) (241.7) Net debt (895.3) (876.2) Other non-current liabilities (
Slide 38: Tax
Tax Profit/(loss) Tax ETR £m £m % Statutory results 219.7 47.0 21.4% Adjusted for: Redundancy and restructuring 16.0 3.1 Intangible asset amortisation 99.5 17.7 Benefit of US goodwill - (7.4) Impairments 13.9 - Subsequent re-measurement of contingent consideration (0.3) (0.2) Profit on disposal of b
Slide 39: Operating Cash Flow
Operating Cash Flow FY 2015 FY 2014 £m £m Adjusted operating profit from continuing operations 365.6 334.0 Depreciation of PP&E 6.1 6.1 Amortisation 12.8 12.1 Share-based payments 2.6 1.7 Other items 0.2 0.1 EBITDA from continuing operations 387.3 354.0 Net capital expenditure (33.5) (14.7) Working
Slide 40: Other Adjusting Items
Other Adjusting Items FY 2015 FY 2014 £m £m Amortisation of intangible assets 99.5 93.9 Impairment 13.9 219.0 Restructuring and reorganisation costs 13.7 20.7 Acquisition related costs 2.3 4.7 Adjusting items relating to joint ventures - 0.3 Subsequent re-measurement of contingent consideration (0.3
Slide 41: Currency
Currency Average Rates Closing Rates Major Currencies FY 2015 FY 2014 FY 2015 FY 2014 USD 1.529 1.649 1.482 1.560 EUR 1.377 1.242 1.358 1.283 Impact of a 1 cent movement in 2015* USD £m EUR £m Revenue 4.4 0.6 Operating Profit 2.0 0.2 Net Debt 4.9 0.3 *The actual impact of currency on Group profit ma
Slide 42: 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 Lance Miller
Slide 43: Informa House, London
Informa House 5 Howick Place London SW1P 1WG +44 (0)20 7017 5000 info@informa.com informa.com