Informa Plc · LSE:INF
Informa — Investor Presentation (May 2009)
22 slides from Informa's investor presentation, May 1, 2009
Slide 1: Proposed Rights Issue: Positioning Informa For the Future
Proposed Rights Issue Positioning Informa For the Future Peter Rigby Adam Walker 1 May 2009
Slide 2: Reasons for the Rights Issue
Reasons for the Rights Issue • Informa trading performance in line despite tough economic environment • Resilient businesses, cost flexibility and strong cash generation • Continue to expect to remain within borrowing covenants • Capital structure put in place in 2007 no longer appropriate for mediu
Slide 3: The Rights Issue
The Rights Issue • 2 for 5 Rights Issue • 170 million new ordinary shares at 150 pence per share • 40.6% discount to TERP • Estimated net proceeds of £242 million, fully underwritten • Used to lower level of net borrowings under existing facilities • Total number of shares in issue following the Rig
Slide 4: Informa Business Overview
Informa Business Overview • Informa is a high quality, specialist information group with strong margins and cash conversion • 5 year track record: 2004-08A 2004A 2005A 2006A 2007A 2008A CAGR Revenue £450m £729m £1,039m £1,129m £1,278m 30% EBITA Margin(1) 21.2% 20.2% 21.1% 23.1% 23.9% EPS (adj.) (p)(
Slide 5: Strategy
Strategy • Delivery of high value content across multiple vertical markets, geographies and media formats • Focus on recurring, visible and secure revenue streams • Highly flexible cost structure with low fixed cost base • Accelerate shift to electronic distribution (c.70% of publishing revenues, c.
Slide 6: Cash Flow Visibility
Cash Flow Visibility • Academic Journals - 85% received almost a year ahead - Resilient performance in past downturns • Subscriptions - Mainly annual - Strong renewal rates • Exhibitions - Cash flow profile: 20%/40%/40% • Conferences - Greater than 95% received prior to event - Little committed cost
Slide 7: Quality of Earnings
Quality of Earnings • Global brands – leading niche publications and “must attend” events • Recurring revenue streams – high renewal rates: • 98% Academic, 87% Datamonitor, 86% FDA and 77% IBI • High visibility with significant deferred income • Visibility over almost 50% of consensus 2009 full year
Slide 8: Strong, Diversified Business Mix
Strong, Diversified Business Mix Revenue by Geography (2008A) Revenue by Type (2008A) Advertising United RoW Kingdom 3% 13% 21% Events Subscriptions 30% 34% 36% North 30% America 15% Continental 18% Europe Copy Sales Performance Improvement 8
Slide 9: Achieving an Appropriate Capital Structure
Achieving an Appropriate Capital Structure • Group continues to generate strong cash flows • £352 million operating cash flow in 2008; significant cash conversion (121%) • Net debt to EBITDA reduced from 4.7x at July 2007 to 3.8x at December 2008 • However, current capital structure put in place in
Slide 10: Existing Debt Facilities Attractively Priced
Existing Debt Facilities Attractively Priced • Bank facilities remain in place to May 2012 • Attractive pricing in the context of current credit markets • Margin over LIBOR ranges from 0.5% (net debt to EBITDA <3.0x) to 0.75% (net debt to EBITDA between 3.5x-4.0x)(1) • Current margin over LIBOR 0.75
Slide 11: Strategic and Business Benefits of the Rights Issue
Strategic and Business Benefits of the Rights Issue • Allows management to: • Position Informa to build market share in core markets and capitalise on competitors’ weaknesses during current downturn • Strengthen Informa’s position to deliver strong and sustained shareholder returns • Focus on medium
Slide 12: Current Trading and Prospects
Current Trading and Prospects • The Group continues to trade in line with management’s expectations, despite challenging trading conditions in many of the markets and geographies in which the Group operates • Organic growth across publishing businesses – strong renewal rates and price increases from
Slide 13: Summary
Summary • Informa has a strong track record of operational delivery in niche, growth markets • Capital structure established in 2007 no longer appropriate • Rights Issue: • Removes covenant overhang and retains benefits of attractively priced debt facilities • Removes need to sell strong assets at d
Slide 14: Expected Timetables
Expected Timetables Rights Issue Redomiciliation • Prospectuses and Circular posted 1 May 1 May • Annual General Meeting 8 May • Nil paid rights commence trading 11 May • Last day for acceptances 26 May • Dealing in new, fully paid Ordinary shares 27 May • Scheme General Meeting for shareholder 2 Ju
Slide 15: Appendices
Appendices
Slide 16: Growing Publishing/Subscription Contribution
Growing Publishing/Subscription Contribution Publishing Contribution to Group Growing Subscription Contribution to Publishing Growing Total £1,039m £1,129m £1,278m Total £409m £495m £607m Revenue Revenue Advertising 8% +6% 7% +8% 6% (0%) +2% 18% PI 22% 20% 33% +16% 31% 31% Copy Sales +22% 35% +1% 36
Slide 17: Key Trends in Events
Key Trends in Events • Approximately 11,000 events Events Revenue Historic Breakdown annually - conferences, training, courses and exhibitions Total £405m £409m £442m Revenue • 200 largest events represented Other 6% 7% (22%) 5% c.40% of 2008 revenue, including: +24% • Arab Health, Cityscape Abu Spo
Slide 18: Income Statement
Income Statement 2008 2007 Increase Organic £'m £'m % % Revenue 1278.0 1129.1 13% 1% Operating profit 164.6 154.0 Amortisation(1) 123.8 99.3 Reorganisation costs 17.4 7.7 Adjusted Operating Profit 305.8 261.0 17% 1% Adjusted OP Margin 23.9% 23.1% Adjusted Interest (net) 72.4 58.4 Adjusted Tax 60.9 5
Slide 19: Cash Flow
Cash Flow 2008 2007 £'m £'m Operating Profit 164.6 154.0 Amortisation/Depreciation 139.9 115.0 Working Capital 47.3 10.2 Operating Cash Flow 351.8 279.2 Interest (67.9) (79.9) Tax (39.2) (31.0) CAPEX (33.0) (33.9) Acquisitions/Disposals 11.8 (560.1) Dividends (73.9) (61.5) Share issues (0.7) 3.9 148
Slide 20: Deferred Income
Deferred Income Deferred Income 2008 2007 Growth £’m £’m Publishing 203 160 27% Events 100 72 39% PI 6 6 0% 309 238 30% 20
Slide 21: Bank Facilities and Covenants
Bank Facilities and Covenants • Total facilities maturing May 2012 • £1,610 million at 31 December 2008 exchange rates • £1,450 million at inception exchange rates • £950 million Term Facility • £500 million Revolving Facility • Term Facility amortisation: 5% Dec-08, 10% Dec-09, 10% Dec-10, 15% Dec-
Slide 22: Disclaimer
Disclaimer This presentation (the "Presentation") is strictly confidential to the recipient and has been prepared by Informa plc ("Informa"). It is intended solely for the information of the initial recipient of this document. By attending this Presentation, you agree to be bound by the following te