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Daily Mail and General Trust plc Full Year Results 2018 29 November 2018 Transcript Disclaimer 1

This transcript is derived from a recording of the meeting. Every possible effort has been made to transcribe this event accurately. However, neither BRR Media Limited nor DMGT shall be liable for any inaccuracies, errors or omissions. 2

KEY AW: Adam Webster, DMGT PZ: Paul Zwillenberg, DMGT TC: Tim Collier, DMGT ND: Nick Dempsey, Barclays WP: William Packer, Exane BNP Paribas KT: Katherine Tait, Goldman Sachs CC: Chris Collett, Deutsche Bank MW: Matthew Walker, Credit Suisse PW: Patrick Wellington, Morgan Stanley SL: Steve Liechti, Numis AW: Good morning and welcome to DMGT ’s FY 18 results. A quick housekeeping point - if you could put your phones on mute, that would be great. I'd now like to hand you over to our CEO, Paul Zwillenberg. PZ: Good morning and welcome to DMGT’s 2018 full year results presentation. Tim and I will run through the presentation and then we will take your questions at the end. First, as usual, the disclaimer. Let me begin with a quick overview of the year. We have made good progress with the strategic priorities I set out two years ago, of improving operational execution, of increasing portfolio focus and of enhancing financial flexibility. While the deliberate transformation of DMGT has impacted our absolute results, we're now much stronger than we were in so many ways. We have significantly strengthened the balance sheet with 233 million pounds of net cash. We have a more focused portfolio and we have a growing culture of continuous improvement. A year ago, I said we would face difficult market conditions in print and digital advertising as well as UK property. And we did. However, I am encouraged by how the portfolio has performed across the board with good growth from our Insurance, EdTech, Energy and Events businesses, and a resilient performance from our Consumer Media business. In terms of financials, the performance was solid and the results were in line with expectations. Revenues were stable on an underlying basis while operating profit was down as expected, and we have again delivered real dividend growth. I'm pleased to announce that the dividend is three percent up on last year, which gives us a dividend CAGR of 7% over the past 20 years. This reflects the 3

Board's confidence in the Group strategy, supported by our strong balance sheet, to deliver long term earnings and dividend growth. Given the progress that we have made over the past two years, we're now in a much better position to look to the future, but more of that in a few minutes. First, I would like to hand over to Tim who will take us through the financials. TC: Coming into this year, we knew which of our businesses faced challenging market conditions, which were set to grow, and where our margins were likely to change. So I'm pleased to be in a position today to report that we have delivered a performance in line with our expectations and our market guidance. Let me start with our adjusted numbers, which we believe provide a more comparable view of the Group's performance. Revenues for the year were £1.4bn, delivering a stable underlying performance. Reported revenues were down 9% on last year and that ’s on a pro forma basis, so really just normalises the Euromoney transaction. The reduction in revenues reflects disposals and closures during the year as well as the weaker US dollar. Operating profits were down an underlying 17%, reflecting the stable performance from the B2B portfolio, a reduction i n Media’s profits and the increased Corporate costs that we spoke about last year. On a pro forma basis, profit was down 16% - that's before tax, with EPS down 23% and that's a result of the increase in the effect of tax rate, again, that I spoke about last year, for completeness. This slide shows our statutory numbers. You'll notice we have considerably less exceptional costs and impairments this year, which has resulted in a £300 million or so improvement at the operating profit level. We also made £658 million of profits on the sale of assets, and that's notably the ZPG disposal, and that drove an even bigger improvement in the profit before tax, which you can see here. You may recall that the gain on last year’s Euromoney transaction was classified as a discontinued operation so it only impacted the profit for the year and the statutory EPS lines. Before I talk to you about the different sectors, I thought it would be useful to remind you of how we think about the different roles that each of our businesses play in our portfolio. And you may remember this slide from our Investor Day. The Operating at scale businesses, and they're the predictable cash generators, so newspapers and Landmark, for example, accounted for 64% of Group revenues and they delivered an 18% Cash OI margin. That ’s slightly down on last year due to the tough market conditions for Media and our UK property businesses. In the middle are our Focused growth businesses, and they include RMS and the 4

MailOnline, and these are businesses that we expect to grow, not just their revenues, but also improve their Cash OI performance. And I'm pleased to confirm that these business delivered an underlying growth rate of 6% in the year; but revenue is just part of the story and I'd like to take a minute to explain what's happening at the profit level. One of our key metrics is Cash OI or, if you prefer, EBITDA less capex. This metric gives us an earlier insight into what cash the businesses are really generating and the future trajectory of operating profit. And I'm pleased to say that the combined Cash OI margin at the Focused growth businesses increased this year from 9% to 11%. Importantly, all of our Focused growth businesses are now operating profitably. And this is especially encouraging given where we are in our transformation. And finally on the slide, our Early bets, these businesses are still in their investment stage and they continue to grow their revenues well. Now let me move to the B2B revenue, and this is really the more conventional view of DMGT. So, I'll start with B2B and you'll notice that I've cut down this section a little bit, but don't worry, all the normal slides are in the appendix; so you can have those at your leisure, but across our B2B portfolio revenues grew an underlying 3%. Now, let me take you through each of the businesses in turn, starting with Insurance Risk. RMS performed well. They delivered an underlying revenue growth of 5% in the year, which includes the benefit of one time project revenues, such as analytical services as well as subscription growth. Now, Paul will talk to you shortly about this, but following the changes we've made at RMS, we've made the decision to re-architect the RMS(one) platform and that's really in order to take advantage of new technologies and the changing attitude to things like cloud computing. As a result of this, we have decided to impair the older software, that software that was written prior to August 2016, and we have taken a non-cash charge against that. But before I leave RMS, I'd note that I'm actually encouraged by their revenue growth. They improved their revenue growth from 2% last year to 5% this, demonstrating the core demand for RMS products and services, and we will be increasing our investment in RMS(one) this year and that reflects our confidence in that business. Now to Property Information. The growth in the US was more than offset by our European business, with UK mortgage approvals were down 4%. So the challenging market conditions that we predicted persisted through the year. 5