Slide 1: 2022 Full Year Results
2022 Full Year Results 30 November 2022 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Future plc (the “Company”) and its subsidiaries (togeth
Slide 3: Highlights
Highlights
Slide 4: Record results, demonstrating resilience of diversification strategy
Outperforming our markets, strengthening Sustainable organic leadership positions growth US performance and diversified model driving growth in year Record results, demonstrating resilience of Strong operating leverage more than offsetting inflation and initial dilutive impact of acquisitions Platform
Slide 5: Financial review
Financial review
Slide 6: Strong financial characteristics
Strong financial characteristics PILLARS FINANCIAL CHARACTERISTICS ● +39% AOP growth SUSTAINABLE Sustainable profitable PROFITABLE ● +2% FY 2022 organic revenue growth (+36% organic growth reported), +11% average FY 2018- FY 2022 ORGANIC GROWTH ● EPS +24% at 163.5p Operating margin ● +1ppt to 33%, abs
Slide 7: Adding another set of strong results to our track record
Adding another set of strong results to our track record +55% CAGR +114% CAGR +63% CAGR +97% CAGR 7 See appendix for definitions
Slide 8: Continued momentum driving strong profit growth and margin
Continued momentum driving strong profit growth and margin £m FY 2022 FY 2021 YoY Var Revenue 825.4 606.8 +36% Gross contribution 1 609.1 459.9 +32% 74% 76% GC Margin (2)ppt Sales, marketing and editorial (217.0) (158.9) (37)% Gross profit after direct costs 392.1 301.0 +30% Gross profit margin 48% 50%
Slide 9: Revenue: reported growth underpinned by continued organic growth
Revenue: reported growth underpinned by continued organic growth FY 2022 Reported Organic Media revenues continue to deliver with Revenue Gross contribution% £m growth growth organic growth of 5% on top of the exceptional revenue growth seen in FY 2021 Media 535.2 +27% +5% 80% Organic revenue growth
Slide 10: Revenue performance - US diversification provides resilience and outsized growth opportunities
Revenue performance - US diversification provides resilience and outsized growth opportunities MEDIA MAGAZINES +1% Organic US digital ad market is over 7x growth +8% greater than the UK market* Organic growth (3)% Organic US represents 39% of total revenue and decline represents a significant growth o
Slide 11: Revenue performance - revenue diversification drives outperformance
Revenue performance - revenue diversification drives outperformance MEDIA +5%* Outperforming the competition DIGITAL ADVERTISING +7%* A high-value, intent-led audience provides resilience (5)% Organic decline in online users Organic revenue growth in calendar Q3 (Future Q4) +10% Organic growth in the
Slide 12: Revenue performance - revenue diversification - Magazines
Revenue performance - revenue diversification - Magazines MAGAZINES (2)%* A changing landscape with further diversified high-quality revenue flat Proforma** Newstrade and Print ads for the FY +6% Proforma** subscription revenue, which now represents 48% of magazines revenue SUBSCRIPTIONS NEWSTRADE & PR
Slide 13: Revenue performance - content diversification provides resilience
Revenue performance - content diversification provides resilience Revenue by verticals YoY organic revenue growth GETs (Games, Entertainment & Technology) (1)% LKN (Lifestyle, Knowledge & News) +11% W&S (Wealth & Savings) n/a B2B +12% Other (Studios, MarketForce) ● GETs is now less than 40% of the Gr
Slide 14: Driving profitable growth by design
Driving profitable growth by design Continuous improvement in profitability is supported by the platform effect: REVENUE MIX ONGOING INVESTMENT SCALABLE BUSINESS MODEL Revenue by division as a % of revenue Sales, marketing and editorial costs % Overhead costs as a % of revenue of revenue Higher margin
Slide 15: Operating model drives margin progression despite headwinds
Operating model drives margin progression despite headwinds Translating into AOP growth of 39% ppt Cost impact £m FY 2021 AOP margin 32% Acquisitions (GoCo, Dennis) (2)ppt Organic Platform Effect COVID 19 bonus (0.4)ppt c£(5)m M&A Inflation & other cost increases (2)ppt c£(15)m Mix +1ppt Organic grow
Slide 16: Well-positioned in a challenging macro-economic environment
Well-positioned in a challenging macro-economic environment Uncertain consumer Cost inflation MARKET/ Lack of product outlook and lower MACRO innovation and supply audience (salaries & wages, FACTORS chain shortages engagement magazines cost of sales) Ability to mitigate Cost agility with immediate &
Slide 17: Cost agility to protect profitability
Cost agility to protect profitability ● Costs that are directly variable in relation to revenue Cost of sales 41% ○ Cost of sales Sales, Marketing & Editorial 41% ○ Sales commissions Overhead 18% ● Semi-fixed costs - interim levers ○ Marketing costs: PPC and subscription ○ Freelancers ○ Pace and re-pr
Slide 18: Cash flow demonstrating strong conversion of profits
Cash flow demonstrating strong conversion of profits £m FY 2022 FY 2021 Adjusted cash generated before changes Adjusted free cash flow up +34% yoy to in working capital and provisions1 295.2 209.1 £267.2m, translating to adjusted free Adjusted movement in working capital cashflow of 98% of adjusted oper
Slide 19: Consistent strong cash generation provides balance sheet strength
Consistent strong cash generation provides balance sheet strength ● Total facilities at 30 November 2022 £900m, with headroom of £476m: ○ Secured new facility partially guaranteed by UKEF of £400m with attractive terms in November 2022 ● Average interest rate in the period 3.2% ● 36% of external deb
Slide 20: Capital allocation and the 10/5/10 model
Capital allocation and the 10/5/10 model Average 3-year sustainable average AOP AOP target growth SUSTAINABLE PROFITABLE +10% 31% ORGANIC GROWTH Capital allocation priorities Consistent Adj. 1.Organic growth FCF conversion 2.M&A THE PLATFORM +5% 12% of 95-100% EFFECT 3.Debt repayment 4.Progressive d
Slide 21: Outlook - well-placed for continued profit growth and outperformance
Outlook - well-placed for continued profit growth and outperformance in a challenging market Modest profit growth in FY 2023 and strengthening of market positions ○ Volatility and uncertainty driven by macro and increased consumer spending pressure, impacting online consumption users ○ Cost agility to
Slide 22: Strategy & business update
Strategy & business update
Slide 23: Confidence in our proven strategy
Confidence in our proven strategy OBJECTIVES ENABLERS PILLARS SUSTAINABLE ORGANIC GROWTH Expert content THE PLATFORM Grow relevant and EFFECT valuable audiences VALUE-CREATING M&A Operating model Diversify and grow monetisation Proprietary technology 23 OPERATING AS A RESPONSIBLE BUSINESS DRIVEN BY P
Slide 24: Our objectives
Our objectives 1. Grow relevant and valuable audiences 2. Diversify and grow monetisation 24
Slide 25: Audience - diversification of highly valuable audiences
Audience - diversification of highly valuable audiences maximises growth and improves efficiency Total audience increased from 394m in FY 2020 to Our strategy to create diverse audiences is working, 506m in FY 2022 and with a significant increase in our with direct, social and referral growing faster t
Slide 26: The value of audience pyramid
Audience - diversification of highly valuable audiences maximises growth and improves efficiency The value of audience pyramid B2B emails (SmartBrief) High intent task focussed users with better conversion B2C emails (SmartBrief) SCALE Social (Studios, Who What Wear) YIELD ONLINE USERS Organic search
Slide 27: Audience - increasing reach through leadership and podium positions
Audience - increasing reach through leadership and podium positions ● Podium strategy to mitigate risk and cater for all users’ needs ● Good progress towards our ambition of 1 in 2 US consumers with US reach* up +3ppt to 35% #1 in the US and in the UK in Tech**, with 2 power brands (TechRadar, GETs
Slide 28: Diversify and grow monetisation
Diversify and grow monetisation Diversification to drive resilience Ability to lean into areas of strength ● Savings tips ● 3 distinct routes of monetisation (advertising, affiliates and direct ● PCWs (price comparison websites for services) Ad consumer monetisation) s te ve 4 content divisions (GETs,
Slide 29: With further opportunities - B2C The Money Edit
With further opportunities - B2C Well diversified The Money Edit FY 2022 FY 2022 GETs (Games, Entertainment & Tech) Advertising LKN (Lifestyle, Knowledge & News) Affiliates W&S (Wealth & savings) Direct Consumer Monetisation ● Content and monetisation routes diversification provide a natural hedge ○ Af
Slide 30: B2B currently 8% of revenue and most valuable audience
Diversifying further - B2B: a progressing journey with opportunities for acceleration ● B2B currently 8% of revenue (£67.3m), growing at 12% organic in FY 2022 ● Most valuable audience ○ With advertising yield at the top of the pyramid B2B currently 8% of revenue and ● 35 brands, including SmartBrie
Slide 31: Value adding M&A
Value adding M&A 31
Slide 32: Acquisitions to accelerate the strategy
Acquisitions to accelerate the strategy 23 to 1 Deals reviewed vs completed 5 acquisitions since October 2021 allocating over £400m of capital Tech content (evergreen and reviews) Women’s content Social monetisation capabilities Gaming & entertainment content, Video monetisation capabilities Data pr
Slide 33: The Platform Effect
The Platform Effect 33
Slide 34: Value creation journey 2018-2022
Value creation journey 2018-2022 Platform Effect ● +11% average organic revenue growth (FY 2018 - FY 2022) ● +94% CAGR EBITDA (FY 2018 - FY 2022) 1 Repeatable, efficient, value creation model with strong 2018 2022 track record 34 1 Unaudited pro-forma EBITDA in the period prior to acquisition
Slide 35: Homes & Women's Lifestyle
Homes & Women’s Lifestyle ● Acquired TI with strong strategic rationale in April 2020 ○ Grow audience and enter new content verticals ○ Grow and diversify monetisation of existing audiences ● Outcome ○ Strategic rationale ■ Grow audience ● Women’s lifestyle online users +37% yoy ● Home lifestyle use
Slide 36: Wealth & Savings
Wealth & Savings ● Acquired GoCo Plc with a strong strategic rationale ○ Marketing efficiency through SEO expertise and diversification for both MVC and Go.Compare ○ Leverage rich first-party data to enhance Aperture ○ eCommerce affiliate for services - disrupt the purchase funnel by bringing PCW to con
Slide 37: With further consumer opportunities across verticals and leadership in US
With further consumer opportunities across verticals and leadership in US ● STEP 1: Grow audience ● STEP 2: Once sufficient scale, add direct sales team ● STEP 3: Drive premium advertising and leverage the platform CONTENT % GROUP ONLINE USERS* COMSCORE** AMBITION MONETISATION OUTCOME/ PROCESS VERTIC
Slide 38: Summary & Outlook
Summary & Outlook
Slide 39: Well-positioned for continued growth in profit
Well-positioned for continued growth in profit ● FY 2022 continuing to add to our track record of growth ● Diversified model delivering returns in challenging macro backdrop, attractive verticals in growing markets ● Supported by an efficient and agile business model maintaining margin growth ● Strong
Slide 40: Q&A
Q&A
Slide 41: Appendix
Appendix 41
Slide 42: Who we are
Who we are Future is a global platform for intent-led specialist media underpinned by technology, enabled by data; with diversified revenue streams We have diversified content verticals We have 3 main monetisation frameworks FY 2022 Revenue mix We reach 1 in 3 in the UK and US*. With 313m Advertising
Slide 43: Our Future, Our Responsibility
Our Future, Our Responsibility Our ESG ambitions to 2026, building a more sustainable future for our communities and planet Board Responsibility Committee chaired by SID Hugo Drayton Responsibility Steering Committee FUTURE DIFFERENTIATION FUTURE FOUNDATION Expanding Shaping the The culture behind T
Slide 44: Our Future, Our Responsibility - FY 2022 achievements
Our Future, Our Responsibility - FY 2022 achievements FUTURE DIFFERENTIATION FUTURE FOUNDATION Expanding Shaping the The culture behind Taking horizons future the company responsibility Connecting people with Leading conversations Great content emerges Going further to deliver their passions and on
Slide 45: Online users - Top reported brands online users
Online users1 - Top 10 reported brands online users Top 10 reported brands (m) FY 2022 Yoy growth FY 2021 CAGR 2019-2022 TechRadar 31.3 (26)% 42.4 0% Toms Guide 29.9 +10% 27.2 +24% CinemaBlend 2 27.0 +16% 23.3 - GamesRadar 19.9 (20)% 25.0 +16% LiveScience 19.8 (13)% 22.8 +2% PC Gamer 18.6 (15)% 21.9
Slide 46: Revenue breakdown by divisions
Revenue breakdown by divisions FULL YEAR FY 2022 FY 2021 Reported Organic growth growth UK US Total UK US Total £m £m £m £m £m £m Digital advertising 67.8 163.4 231.2 61.5 125.1 186.6 +24% +7% Affiliates 194.4 78.3 272.7 142.4 73.8 216.2 +26% (6)% Events and other media 22.0 9.3 31.3 16.5 3.5 20.0 +5
Slide 47: Exceptional costs reflecting the impact of value creative acquisitions
Exceptional costs reflecting the impact of value creative acquisitions £m FY 2022 FY 2021 YoY Var Adjusted operating profit 271.7 195.8 +39% Exceptional costs largely relate to the Dennis acquisition and integration as well as Adjusted net finance costs (18.6) (7.5) +148% onerous properties costs partl
Slide 48: Technical guidance
Technical guidance ● Tax rate: expected to be at 24% ● Interest costs: ○ Including commitment fees, external interest payable in FY 2023 is expected to increase to £27m, reflecting a blended interest rate of 7.2% on average gross debt of £378.2m. The total forecast finance cost for FY23 of £32.5m also
Slide 49: Growth through platform effect ongoing investment in proprietary technology stack
Growth through platform effect ongoing investment in highly scalable proprietary technology stack Assets Websites Monetisation Vanilla is our single modular web platform, it has a single content management system Hawk is our our eCommerce service that Tech Services Freelance Staff enables the moneti
Slide 50: Sources & Definitions
Sources & Definitions Organic growth ● Organic growth is defined as the like for like portfolio at constant FX rates (i) excluding acquisitions and disposals made during FY 2021 and FY 2022 and (ii) including the impact of closures and new launches. Constant FX rates is defined as the average rate for