ANNUAL RESULTS 31 DECEMBER 2019
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AGENDA 01 Highlights Duncan Painter 02 Financials Mandy Gradden 03 Summary and Outlook Duncan Painter 04 Q & A Appendix Annual Results 2019 24 February 2020 3
HIGHLIGHTS DUNCAN PAINTER 24 February 2020 4
2019 FINANCIAL HIGHLIGHTS Oper Operating Cashflow ating Cashflow Revenue Adjusted EPS Adjusted EPS 88% £416.2m 21% Conversion Growth Growth 19.4% Reported 6.4% Organic Margin Margin 9.0% Proforma 30.9% EBITDA £128.5m £120m Net debt: EBITD Net debt: EBITDA Growth Share repurchase 1.4x 18.5% Reported programme announced 6.2% Organic 1.0x Proforma 8.5% Proforma Organic growth includes growth from acquired businesses, only once owned for more than 12 months Proforma growth includes growth from businesses acquired in 2018 and 2019, as if owned since January 2018 Proforma net debt: EBITDA includes proceeds from the sale of the Jumpshot investment (January 2020) Annual Results 2019 24 February 2020 5
2019 OPERATIONAL HIGHLIGHTS Priorit iority Achie hievement ement Integr Inte grate Edge ate Edge Integration remains on track for June 2020. Global supplier agreement signed with Coca-Cola and encouraging start to 2020 trading. Fo Focus o on E Execution Excellent performance from WGSN and Flywheel Digital. Development of Ascential strategic client programme. China Ex ina Expansion pansion Acquisition of eCommerce analytics business Yimian in China. Mark Marketin ing Segmen g Segment back to t back to Back to growth, following re-sets for Cannes Lions and MediaLink in 2018. Increasing brand participation for Lions, Grow Growth th with record NPS. WARC delivered strong growth as part of the growth in our digital offerings. Ascential O cential Oper erating M ating Model del Key changes in Finance, Marketing, Data Science and Product Development, driving efficiency, cross-sell and new product creation. Refinanc Refi ncing Successful refinancing completed in January 2020: expanded £450m (100% RCF) facility. Annual Results 2019 24 February 2020 6
FINANCIALS MANDY GRADDEN 24 February 2020 7
HEADLINES OF THE YEAR ADJUSTED RESULTS (£m) Reported Report Organic Organi Profor Pro orma 2019 201 2018 2 201 Growth Growth Growth Growth Growth Growth Organic revenue growth of 6.4% (9.0% Proforma) Revenue Revenue 416 416.2 348 348.5 19. 19.4% 6.4 6.4% 9.0% 9.0 EB EBITDA DA 128 128.5 108 108.4 18.5% 18. 6.2 6.2% 8.5 8.5% Organic EBITDA growth of 6.2% (8.5% Proforma) EBITDA marg EB DA margin 30.9% 30. 31. 31.1% EBITDA margin of 30.9% Depreciation and amortisation (22.7) (16.2) Operating leverage funds investment in • Operating pro Ope profit 105 105.8 92. 92.2 14. 14.8% Digital Commerce Associates and JV’s 0.9 0.6 Depreciation step up in line with capex growth Net finance costs (10.3) (13.1) Pro Profit befo before re tax tax 96. 96.4 79.7 79. 21. 21.0% Tax rate benefit from US credits Tax (20.6) (17.8) Diluted EPS from continuing operations up 20.9% to 18.5p Effective tax rate 21.4% 22.3% Good cash generation PAT– Continuin PAT– Continuing oper operations ons 75. 75.8 61. 61.9 22. 22.3% Operating cash conversion of 88% • PAT– Discontinued operations 15.5 Recommended final dividend of 4.0p and PAT –To PAT Total tal opera operations ons 75. 75.8 77.4 77. (2.2%) total dividend of 5.8p Diluted EPS – continuing ops. 18.5p 15.3p 20.9% Leverage of 1.4x 1 net debt to EBITDA 1 Pre IFRS 16 2 Restated for the implementation of IFRS16 Annual Results 2019 24 February 2020 8
SEGMENTAL OVERVIEW – ROBUST BUSINESS MODEL Segment Se Re Revenue nue % Re Revenue nue 1 Growth 1 Gro EBITDA 2 EBITD Margin Margin Busines Business Model Model Advisory Digital 10% Product £86m 21% +8% £36m 42% Subscriptions & Design Platforms 90% Digital Advisory Subscriptions & £136m 32% +9% £51m 37% Marketing 37% Platforms 11% Events 52% Advisory Digital 3% Sales £158m 38% +11% £40m 25% Subscriptions & Events Platforms 55% 42% Advisory Built Digital 3% £36m 9% +5% £17m 47% Subscriptions & Environment Platforms 97% & Policy Advisory Advis ry 15% 15 Dig Digital £416m 100% +9% £129m 31% Total Subs Subscriptio iptions & & Events Even ts Platfo Platform rms 52 52% 33% 33 1 Proforma for acquisitions 2 Adjusted EBITDA (total includes Group costs of £15m) Annual Results 2019 24 February 2020 9
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