Slide 1: Results for Financial Year to March 31, 2009
RESULTS FOR FINANCIAL YEAR TO MARCH 31, 2009
Slide 2: Driving Online and Increasing Margins
DRIVING ONLINE AND INCREASING MARGINS No recipient should construe the contents of this presentation as legal, investment, financial, or other advice. If a recipient is in any doubt as to what action to take, or whether one or more of the exemptions listed below apply, it should seek its own persona
Slide 3: Driving Online and Increasing Margins
DRIVING ONLINE AND INCREASING MARGINS This presentation is being made only in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, that is investment professionals within the meaning of Article 19(5) of the Financial Services and M
Slide 4: Contents
DRIVING ONLINE AND INCREASING MARGINS CONTENTS 1 INTRODUCTION 2 RESULTS 3 PRODUCTS 4 GROWTH PLAN 5 CONCLUSION 4
Slide 5: Introduction - The Team
DRIVING ONLINE AND INCREASING MARGINS INTRODUCTION - THE TEAM Alex Connock Nitil Patel Group CEO Group FD Co-founder (1999) with Bob Geldof Founding team member (1999) Chartered Accountant TV Production / journalism background Group Strategy and Development Finance and the Content Division Adrian Du
Slide 6: What We Do
DRIVING ONLINE AND INCREASING MARGINS WHAT WE DO Factual media company – online, TV, print Two divisions Content - TV production / online TV channels B2B online video channels - Teachers TV Communications – Print / online / events / video B2B and public sector publisher - 600 titles, 100 websites, 3
Slide 7: Results – Achieved Profits Growth Despite Recession
DRIVING ONLINE AND INCREASING MARGINS RESULTS – ACHIEVED PROFITS GROWTH DESPITE RECESSION EBITDA £5.9m, up 9.3% PRE-TAX PROFIT (PBT) £3.3m, up 5% REVENUE £80.2m, down 1.5% NET PROFIT £3.0m, up 7% BASIC EPS 5.34p, up 10% ADJUSTED BASIC EPS 6.52p, up 6% CASH BALANCE £13.1m, up 18% SHAREHOLDERS’ EQUITY
Slide 8: Operating Headlines
DRIVING ONLINE AND INCREASING MARGINS OPERATING HEADLINES Content moving into online database Shift towards online publishing, creating cash flow and margin benefit Resilience in B2B units Focus on sectors like defence, education, health Strong performance in factual TV - Recession created demand Ra
Slide 9: Profits and EPS Increased
DRIVING ONLINE AND INCREASING MARGINS PROFITS AND EPS INCREASED 6000 EBITDA 3500 PBT 5000 3000 (000’s) (000’s) 2500 4000 2000 3000 1500 2000 1000 1000 500 0 0 2003 2004 2005 2006 2003 2004 2005 2006 2007 2008 2009 2007 2008 2009 7 6 ADJ BASIC EPS 5 Pence 4 3 2 1 0 This Year 2003 2004 2005 2006 2007
Slide 10: Net Assets Increased
DRIVING ONLINE AND INCREASING MARGINS NET ASSETS INCREASED NET ASSETS CASH 25000 16000 14000 20000 12000 15000 10000 £’000 8000 10000 6000 4000 5000 2000 0 0 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 This Year Previous Years 10
Slide 11: Cashflow Movement
DRIVING ONLINE AND INCREASING MARGINS CASHFLOW MOVEMENT 18000 5,669 (2,737) 16000 1,345 (1,157) (446) (771) 14000 (3,331) 3,407 13,127 11,148 12000 10000 8000 6000 4000 2000 0 Opening Operating W/Capital TTV Net Tax Purchase Acquisitions Net Closing cash cash flow movements W/Capital finance of fixe
Slide 12: Turnover by Product - B2B Online Trebled
DRIVING ONLINE AND INCREASING MARGINS TURNOVER BY PRODUCT - B2B ONLINE TREBLED Print/Events/ Advertising 62% Factual TV 28% 2009 Growth B2B Online / Online Video 10% 12
Slide 13: Turnover by Client Classification & Sector
DRIVING ONLINE AND INCREASING MARGINS TURNOVER BY CLIENT CLASSIFICATION & SECTOR TURNOVER BY CLIENT CLASSIFICATION TURNOVER BY SECTOR Government Health Defence Public B2B 11% 11% Technology 2% Sector 25% 5% 38% Trade 12% Finance 2% B2C 8% Lifestyle Education 21% 19% Broadcaster Infrastructure Broadc
Slide 14: Increased Margins
DRIVING ONLINE AND INCREASING MARGINS INCREASED MARGINS 2009 2008 Change £m £m % Turnover 80.2 81.4 -1.4% Reduction in TTV contract Gross Profit 24.0 23.0 4.3% Increased Margins Reflecting greater control of EBITDA 5.9 5.4 9.9% costs Accounting for higher finance Profit for the period 3.0 2.8 7.1% c
Slide 15: Stronger Balance Sheet
DRIVING ONLINE AND INCREASING MARGINS STRONGER BALANCE SHEET 2009 2008 Change £m £m % Reduced trade and other Net Current Assets 5.7 0.5 1040% payables by £3.5m Retention of earnings and Net Assets 22.9 16.9 36% placing Shareholders’ Equity 22.7 16.8 35% 15
Slide 16: Stronger Cash Position
DRIVING ONLINE AND INCREASING MARGINS STRONGER CASH POSITION 2009 2008 £m £m Cash as at 31 March 13.0 11.2 Less Amounts held for (5.7) (6.2) Clients & Productions Net Cash for Group 7.3 5.0 16
Slide 17: Stronger Net Debt Position
DRIVING ONLINE AND INCREASING MARGINS STRONGER NET DEBT POSITION 2009 2008 £m £m Reflecting acquisitions and deferred Gross debt as at 31 March 14.5 13.8 consideration payments in the year Less Net Cash for Group (7.3) (5.0) Net debt as at 31 March 7.2 8.8 17
Slide 18: Products: Creating Integrated, Online-Accessible Factual Media
DRIVING ONLINE AND INCREASING MARGINS PRODUCTS: CREATING INTEGRATED, ONLINE-ACCESSIBLE FACTUAL MEDIA 18
Slide 19: Divisional Business Models Summary
DRIVING ONLINE AND INCREASING MARGINS DIVISIONAL BUSINESS MODELS SUMMARY Content Division - TV production / online TV channels Fee-based production Broadcasters and government pay for content Communications Division – Print / online / events / video Contract - Fee-based production Contract - Adverti
Slide 20: Content Division - Factual TV Demand Has Been Strong in Recession
DRIVING ONLINE AND INCREASING MARGINS CONTENT DIVISION - FACTUAL TV DEMAND HAS BEEN STRONG IN RECESSION Brook Lapping – definitive modern history Blakeway – investigative journalism Films of Record –observational documentaries. 20
Slide 21: Public Sector Online TV – Strength in Growth Market
DRIVING ONLINE AND INCREASING MARGINS PUBLIC SECTOR ONLINE TV – STRENGTH IN GROWTH MARKET Local online TV in Fermanagh & Kent 75% owner of consortium delivering Teachers Online provision of continuing TV to UK government at £10m+ per year professional development 21
Slide 22: Communications Division - B2B Publishing Resilient
DRIVING ONLINE AND INCREASING MARGINS COMMUNICATIONS DIVISION - B2B PUBLISHING RESILIENT Over 600 titles Long term contracts plus move to owned titles Advertising and fee funded models Trade / B2B / Public Sector Relatively insulated sectors Print and increasing online versions 22
Slide 23: B2B Online Trebled During the Year
DRIVING ONLINE AND INCREASING MARGINS B2B ONLINE TREBLED DURING THE YEAR Owned sites – on back of published titles Strength in growing CSR sector Contract builds - Fee funded 23
Slide 24: B2B Events Expanded
DRIVING ONLINE AND INCREASING MARGINS B2B EVENTS EXPANDED Over 30 Events Trade / B2B / Public Sector Fee based and owned 24
Slide 25: B2B Online Video Advertising Grew
DRIVING ONLINE AND INCREASING MARGINS B2B ONLINE VIDEO ADVERTISING GREW Pioneering online video advertising VIDEO National production coverage – VIDEO low cost high margin Backed by publishing sales force 25
Slide 26: Growth Plan: Driving Online Increases Margins
DRIVING ONLINE AND INCREASING MARGINS GROWTH PLAN : DRIVING ONLINE INCREASES MARGINS Transitioning B2B print to online Creates cost savings / additional revenue opportunities Migrating group content including TV into online portals Increases % of owned assets Moving to owned assets Increases control
Slide 27: New Slate of Online Projects in 2009-10
DRIVING ONLINE AND INCREASING MARGINS NEW SLATE OF ONLINE PROJECTS IN 2009-10 Accountancy TV Project Online TV science channel Newton TV Bid for DCMS public sector local news contracts possible 27
Slide 28: Growth Plan - Strategic Rationale
DRIVING ONLINE AND INCREASING MARGINS GROWTH PLAN - STRATEGIC RATIONALE OPINION REALITY Cross platform The best media organisations – BBC, Sky, Telegraph – are multiplatform. product mix 62,000 Ten Alps customers want multiplatform and we protect relationship by helping. Focus on one output – say ju
Slide 29: Conclusion – Building a Factual Media Asset
DRIVING ONLINE AND INCREASING MARGINS CONCLUSION – BUILDING A FACTUAL MEDIA ASSET Market-leading positioning and unique blend of skills Track record of profitable growth Migration of content in profitable online model Positioned to exploit growing online channel and video markets Many opportunities
Slide 30: Ten Alps
TEN ALPS