ANNUAL RESULTS 2018
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AGENDA 01 Highlights Highlights Duncan Painter Duncan Painter 02 Financials Financials Mandy Gradden Mandy Gradden 03 Summary and Outlook Summary and Outlook Duncan Painter Duncan Painter 04 Q&A Q&A Annual results 2018 25 February 2019 3
HIGHLIGHTS DUNCAN PAINTER Annual results 2018 25 February 2019 4
STRATEGIC GOAL Global market leader in delivering specialist information that enables our customers to win in the digital commerce economy Annual Results 2018 25 February 2019 5
SERVING THE NEEDS OF CUSTOMERS IN PRODUCT DESIGN , MARKETING AND SALES Sales Product Design c.90% of our Revenue comes from the consumer value chain 21% 21% 38% 38% 9% 9% 10% Built 32% 32% Environment Marketing & Policy Proforma for WARC, BrandView and Flywheel Annual results 2018 25 February 2019 6
HIGHLIGHTS ORGANIC GROWTH ADJUSTED REVENUE EBITDA Completed transformation into a specialist information company, while maintaining strong 6.3% 3.8% growth • Creation of Edge and acquisition of Flywheel Digital provides industry leading capabilities and market leadership. Strong core capabilities in place Organic basis includes growth from acquired businesses, • Strong growth from WGSN, with excellent only once owned for more than 12 months operating leverage. • Money20/20 established as the leading global fintech platform. PROFORMA GROWTH • Asia (Singapore) and China launched ADJUSTED REVENUE EBITDA • Successful move of European edition to Amsterdam 12.5% 9.6% • Cannes Lions extended its digital offering, confirming its position as the global creativity and effectiveness benchmark: • Launch of The Work and Digital Pass • Acquisition of WARC Proforma basis includes growth from businesses acquired in 2017 and 2018, • Continued evolution in MediaLink client mix with as if owned since January 2017 greater focus on brands. Annual results 2018 25 February 2019 7
FINANCIALS MANDY GRADDEN Annual results 2018 25 February 2019 8
HEADLINES ADJUSTED RESULTS (£m) Organic revenue growth of 6.3% Reporte Reported d Orga Organic Proforma Profo ma 20 2018 20 2017 Growth Grow th Growth Grow th Growth Grow th (9.6% Proforma) Revenu Revenue 348 348.5 292 92.9 .9 19.0% 19.0 6.3% .3% 9.6% .6% Organic EBITDA growth of 3.8% (12.5% Proforma) EBITDA ITDA 101.8 94.7 4.7 7.5% .5% 3.8% .8% 12.5 2.5% EB EBITDA marg margin 29 29.2% 32.3% EBITDA margin of 29.2% • Reflects impact of lower margin Depreciation (10.8) (9.3) acquisitions such as Clavis. Operating profit Operatin profit 91.0 91 85 85.4 6.6% 6. • Operating leverage for Product Design and Built Environment & Joint venture 0.6 0.3 Policy offset by the expected Marketing decline. Net finance costs (11.9) (11.7) Prof Profit bef it before re tax 79.7 9.7 74.0 4.0 7.7% .7% Diluted EPS from continuing operations up 12.5% to 15.3p Tax (17.8) (18.7) Strong cash generation Effective tax rate 22% 25% • Operating cash conversion of PA PAT– Continu Continuing operation operations 61.9 1.9 55.3 5.3 11.9 1.9% 105% PAT– Discontinued operations 15.5 19.6 Recommended final dividend of 3.9p PA PAT –Total operatio tal operations 77.4 7.4 74.9 4.9 3.3% .3% • Total dividend of 5.8p, up 4% Diluted EPS – continuing ops. 15.3p 13.6p 12.5% Leverage of 1.1x net debt ge of 1.1x net debt to EBITD to EBITDA Diluted EPS – total operations 19.1p 18.6p 2.7% Annual results 2018 25 February 2019 9
REVENUE ORGANIC REVENUE GROWTH BY SEGMENT (£m) GROWTH ORGANIC 19.0% Key contributors to Organic growth: 348.5 348. • Money20/20: +37% • One Click Retail: +40% Marketing decline of £9.2m 40.7 comprises Cannes Lions: -8% 6.3% and MediaLink: -9%. 5.7% Reported growth impacted by: 12% 307.8 307. 25% 0.8 • Weaker US$ (1.32 vs 1.30) 3.6 • Acquisitions in 2018 (WARC, BrandView, Flywheel Digital) 7% -8% 19.5 292.9 292. • Full year impact of acquisitions in 5.1 3.0 289. 289.6 2017 (Clavis, MediaLink) 9.2 0.3 1 2017 2017 FX Acquired 2017 2017 Product Marketing Sales BEP Interco 2018 2018 Acquired 2018 2018 LFL LFL LFL LFL Repo Reported ed Businesses Design Businesses Reported Repo ed (Post Acq’n (Post Acq’n <12m) <12m) 1 Built Environment & Policy Organic growth includes growth from acquired businesses, only once owned for more than 12 months Annual Results 2018 25 February 2019 10
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