2018 Full Year Results Combination & Creation 7 March 2019 www.informa.com
Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of the Group. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees of future performance and are subject to a number of risks and uncertainties and actual results, performance and events could differ materially from those currently being anticipated, expressed or implied in such forward-looking statements. Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, but are not limited to, those identified in the “Principal Risks and Uncertainties” section of the Group’s Annual Report. The forward-looking statements contained in this presentation speak only as of the date of preparation of this presentation and the Group therefore cautions against placing undue reliance on any forward-looking statements. Nothing in this presentation should be construed as a profit forecast. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this presentation to reflect any change in the Group’s expectations or any change in events, conditions or circumstances on which any such statement is based. This presentation does not constitute or form part of any offer or invitation to purchase any securities of any person nor any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any such securities. 07 March 2019 2018 Full Year Results 2
Stephen A. Carter Group Chief Executive 2018 Combination & Creation 07 March 2019 2018 Full Year Results 3
The Informa Journey 2013-2018 2013 2018 Global Exhibitions Distributed portfolio Industry specialisation DEPTH UK, Europe, MEA Business Intelligence International reach GROWTH Short-term targets Investment for growth Knowledge & Networking FOCUS Product orientated Customer orientated Academic Publishing MIX Multiple platforms & systems Operational fitness Margins before growth Accel eler erated ed Integ egration Plan PROGRESSIVE IMPROVEMENT IN OPERATING FOCUS AND PERFORMANCE 07 March 2019 2018 Full Year Results 4
The Informa Journey 2013-2018 Revenue by region Revenue by region North America North America Asia Asia UK UK 2013 2018PF Continental Europe Continental Europe £1,130m Middle East £2,370m* Middle East Rest of World Rest of World Revenue by type Revenue by type Subscription Subscription Exhibitor Exhibitor Sponsorship Sponsorship 2013 2018PF Attendee Attendee £1,130m Copy Sales £2,370m* Copy Sales Marketing Services Marketing Services PROGRESSIVE IMPROVEMENT IN MIX AND PREDICTABILITY 07 March 2019 2018 Full Year Results *2018 Reported Revenue 5
The Informa Journey 2013-2018 Underlying revenue growth (%) Adjusted earnings per share (p) 3.7 49.2 4.0 50.0 3.4 46.0 +300bps +7% CAGR 3.0 45.0 42.1 39.5 1.6 2.0 40.0 37.8 1.0 0.7 1.0 35.0 0.0 30.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Free cash flow (£m) Dividends per share (p) 21.9 550 22.0 503 +5% CAGR 500 20.5 21.0 +21% CAGR 450 401 20.0 19.3 400 18.5 19.0 350 303 306 17.8 18.0 300 237 17.0 250 200 16.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 FIFTH CONSECUTIVE YEAR OF GROWTH IN REVENUE, EARNINGS, CASHFLOW & DIVIDENDS 07 March 2019 2018 Full Year Results 6
2018: Combination & Creation Growth Further improvement in underlying revenue growth +3.7% Performance Underlying profit growth 2.3% and consistent Group margin Operating cash conversion 91% Strong Free Cash Flow >£500m or >£600m pro-forma for a full year of UBM Addition of Hanley Wood, Penton and UBM creates Operating Strength Depth and Industry Specialisation Balance sheet leverage 2.9x at year-end Robust Underpinned by long-term flexible financing Returns Progressive dividends, +7%, growing in line with earnings DEPTH, SPECIALISATION AND CONTINUING GROWTH 07 March 2019 2018 Full Year Results 7
2018: Improving Financial Performance Underlying Revenue Growth Global Knowledge & UBM Business Academic Exhibitions Networking (Stub period) Intelligence Publishing +6.7% +2.3% +3.7% +2.6% +2.2% Informa Group Growth Underlying Underlying Earnings Free Dividends Revenue Profit Per Share Cash Flow Per Share +3.7% +2.3% +7.0% +25.5% +7.1% 07 March 2019 2018 Full Year Results 8
AIP Accelerated Integration Plan: 12 month programme Phase 1 Phase 2 Phase 3 Phase 4 Discovery Combinatio Ambition Completion & Validation n & Creation June – August 2018 August – November 2018 Nov 2018 – March 2019 April – July 2019 • Learn more about each • Finalise new operating • Start to operate as a • Introduction of the New other’s businesses and structures and models, single, combined business Group’s Purpose & Promise, teams and start to combine internally and externally • Set objectives for 2019 businesses • Continued collaboration based on the new Group’s • Complete systems between senior • Confirm leadership and business plans integration management teams reporting lines in line with • Engaging with customers • Reap the full benefits of these structures • Regular updates for all about opportunities across Combination and Creation Colleagues • Start formulating plans for brands and businesses • Long-term opportunities 2019 and preparing budgets • Validating approach to • Additional systems and and ambition for new as a combined business combination platforms integration Informa Group • Initial linking and • Providing clarity on • Start shift to new brand combination of some tools obvious areas of overlap architecture and technology platforms between businesses 07 March 2019 2018 Full Year Results 9
AIP 12 Month Programme Accelerated Integration Plan (AIP) AIP AIP AIP AIP AIP AIP Operating Progressive Cost & Leadership Fashion Brand Model & Portfolio Revenue & Talent GAP Value Verticals Management Synergies Events-led and Best of both Accelerate shift to Cost synergies 3-year plan to return Brand strategy • • • • • • Information/content verticals in content-led to growth Refresh Group Revenue opportunities Product & vertical • • • led B2B divisions businesses leadership team £10m+ investment brands • Managing cost to • Reinforcement of Greater emphasis on into brands • • Appointment of COO achieve synergies Informa corporate • • verticals within markets with growth Support/refresh talent brand • divisions and returns Alignment to new • operating model Target new growth Retire UBM brand • • Changes to structure, Sale of Life Sciences • • segments by end of AIP alignment and Media Brands incentives Portfolio Sales & Marketing Effective transition • • excellence programme Further £120m • revenue potentially in scope 07 March 2019 2018 Full Year Results 10
AIP Combining Businesses & Brands New Informa Group Global Informa Global Informa Markets Exhibitions Exhibitions Markets Knowledge & Informa Knowledge & Informa Connect Networking Networking Connect UBM Informa Informa Tech Portfolio Tech Informa Business Business Intelligence Intelligence Intelligence Taylor & Academic Academic Publishing Francis Publishing 07 March 2019 2018 Full Year Results 11
AIP New Operating Structure and Brands 2018 Annual Revenue Global Knowledge & UBM Business Academic Portfolio Intelligence Publishing Exhibitions Networking £990m £530m £575m £260m £385m New Informa Group* Informa Markets Informa Connect Informa Tech Informa Intelligence Taylor & Francis £1,360m £215m £225m £360m £530m 07 March 2019 2018 Full Year Results *2018 annual revenue excluding Media Life Sciences revenue 12
Gareth Wright Group Finance Director 2018 Financial Delivery 07 March 2019 2018 Full Year Results 13
2018 Full Year Results +34.4% 34.9% 7.1% Increased Adjusted Higher Reported Revenue Enhanced Dividend Operating Profit Per Share +34.9% to £2,369.5m +34.4% to £732.1m (2017: £544.9m) up 7.1% to 21.9p (2017: £1,756.8m) (2017: 20.45p) 7.0% Growth in Adjusted Diluted EPS +3.7% +25.5% +7.0% to 49.2p (2017: 46.0p) Improving Underlying Revenue Strong Free Cash Flow 2.9x Growth +25.5% to £503.2m +3.7% vs +3.4% underlying revenue (2017: £400.9m) growth in 2017 Deleveraging Balance Sheet Net debt/EBITDA 2.9x (2017: 2.5x) IMPROVING FINANCIAL PERFORMANCE IN 2018 07 March 2019 2018 Full Year Results 14
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