Half Year Results Presentation For the six months ended 30 June 2016
Disclaimer By attending the meeting where this presentation is made, or by reading this document, you agree to be bound by the limitations set out below. This presentation is being communicated only to and is only directed at those persons in the United Kingdom who are (i) persons having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (iii) persons to whom it would otherwise be lawful to distribute the presentation. The information contained herein is for those persons attending this presentation (and to whom this presentation is directed) only, and is solely for their information and may not be reproduced or further distributed to any other person or published in whole or in part for any purpose. The information set out herein may be subject to updating, completion, revision and amendment and such information may change materially. Neither Ascential plc (the “Company”), its advisers nor any other person, representative or employee undertakes any obligation to update any of the information contained herein. No representation or warranty, express or implied, is or will be made by the Company, its advisers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and any reliance you place on them will be at your sole risk. Without prejudice to the foregoing, neither the Company, its associates, its advisers nor its representatives accept any liability whatsoever for any loss howsoever arising, directly or indirectly, from the use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information only. This presentation does not constitute an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever. It does not constitute a recommendation regarding any securities. Past performance, including the price at which the Company’s securities have been bought or sold in the past and the past yield on the Company’s securities, cannot be relied on as a guide to future performance. Nothing herein should be construed as financial legal, tax, accounting, actuarial or other specialist advice. This presentation is not for distribution in the United States, Canada, Australia or Japan or in any jurisdiction where such distribution is unlawful. Certain statements in this presentation constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this presentation. As a result you are cautioned not to place reliance on such forward-looking statements. Nothing in this presentation should be construed as a profit forecast. 1
Introductory video 2
Highlights Duncan Painter, Chief Executive 3
First half highlights 10% 9% Successful first half in line with our expectations: • Strong revenue and profit growth in our • seasonally stronger half. Good performance from our Top 5 products. • Organic 1 Revenue Organic 1 Adjusted EBITDA Strong cash generation and deleveraging in • line with plan. 2016 expectations unchanged: • 4% 8% Forward revenue visibility is a key strength of • our business model. Confident in our full year outlook. • Customer Revenue Per Numbers 2 Customer 2 1. Organic growth is calculated to provide the reader with a more meaningful analysis of underlying performance. The following adjustments are made: (a) constant currency (restating H1 2015 at H1 2016 exchange rates), (b) event timing differences between periods (if any), and (c) excluding the part-year impact of any acquisitions and disposals. 2. Exhibitions & Festivals and Subscription products. 4
2016 priorities Product Development Achievements H1 Status WGSN Single Platform March 2016 WGSN INstock V3 March 2016 Lions Health - year 3 76% growth to £2.4m Lions Innovation - year 2 18% growth to £1.8m Lions Entertainment – launch £1.4m revenue Money20/20 Europe – launch £7.7m revenue, more than 2,300 paying delegates Money20/20 Asia Launch planning In progress China JV Trading from April 2016 Portfolio management H2 Focus Portfolio additions Small number of bolt-on acquisitions under evaluation Portfolio disposals Naidex exhibition (£0.8m revenue, break even) sold 5
Focused portfolio LTM 1 Group Revenue LTM 1 Group Adjusted EBITDA Top 10 85% Top 5 Top 5 56% 71% Top 10 72% Revenue EBITDA LTM 1 June 2016 LTM 1 Dec 2015 LTM 1 June 2016 LTM 1 Dec 2015 Top 5 products 56% 53% 71% 64% Top 10 products 72% 68% 85% 81% 1 LTM = Last Twelve Months (shown for reasons of H1/H2 seasonality) Top 5 products by Adjusted EBITDA LTM June 2016: Information Services: Groundsure & WGSN; Exhibitions & Festivals: Cannes Lions, Spring/Autumn Fair and Money20/20. Top 6-10 products by Adjusted EBITDA LTM June 2016: Information Services: HSJ, Planet Retail and Glenigan; Exhibitions & Festivals: Bett and CWIEME . 6
Solid progress on international expansion UK 45% North America Europe ASIA/Pacific (48%) 19% (18%) 16% (15%) 10% (9%) MENA 6% (6%) Rest of Africa 1% (1%) South America 3% (3%) Last 12 months revenue to June 2016 (December 2015), based on location of customer. 7
Financials Mandy Gradden, CFO 8
Top products continue to drive growth Top 5 Products £32.1m £52.9m £23.4m £7.7m £7.8m H1 2016 Revenue H1 2016 6% 17% 3% n/a 14% Organic 1 Revenue Growth Information Services Exhibitions & Festivals 1. Organic growth is calculated to provide the reader with a more meaningful analysis of underlying performance. The following adjustments are made: (a) constant currency (restating H1 2015 at H1 2016 exchange rates), (b) event timing differences between periods (if any), and (c) excluding the part-year impact of any acquisitions and disposals. 9
Income statement Headlines Reported Growth £m Organic 1 H1 16 H1 15 Reported Exhibitions & Festivals Exhibitions & Festivals 119.1 97.1 22.6% 15.3% Information Services 83.4 81.3 2.6% 0.7% Organic revenue growth of 15.3% driven by launch of • Revenue 202.5 178.4 13.5% 8.8% Money20/20 Europe and continuing strong performance from Cannes Lions. Exhibitions & Festivals 53.5 42.0 27.4% 14.5% margin 44.9% 43.3% Reported revenue growth of 22.6% boosted by currency • Information Services 20.1 17.9 12.3% 5.9% and event timing differences. margin 24.1% 22.0% Central Costs (6.3) (4.5) Information Services Adjusted EBITDA 2 67.3 55.4 21.5% 10.1% margin 33.2% 31.1% Revenue up 0.7% on an Organic basis (or up 3.2% • excluding the decline in print advertising). Depreciation (7.4) (8.5) Adjusted Operating Profit 59.9 46.9 Subscription and Transactional products • Amortisation (14.3) (14.8) combined grew 6.3% Exceptional Items (5.2) (3.6) Share-based Payments (0.7) - Subscription-led products declined by £2.4m, of • Operating Profit 39.7 28.5 which Print advertising accounted for £1.9m. JV's / Gain on Disposal (0.1) 4.8 Net Finance Costs (29.3) (34.1) Reported revenue growth of 2.6% impacted by both • Profit before Tax 10.3 (0.8) currency and M&A (acquisition of RNG and disposal of Tax (2.2) 2.8 MBI in H1 15). Profit after Tax 8.1 2.0 The growth in Central costs relates to PLC costs and one-off leadership change expenses. 1. Organic growth is calculated to provide the reader with a more meaningful analysis of underlying performance. The following adjustments are made: (a) constant currency (restating H1 2015 at H1 2016 exchange rates), (b) event timing differences between periods (if any), and (c) excluding the part-year impact of any acquisitions and disposals 2. Adjusted for share-based payments and exceptional items. 10
Revenue growth (£m) 8.8% Acquisition of RetailNet Group (June 2015) 202.5 2.4 200.8 3.0 1.7 (7.0)% 6.3% 0.7% WRC and Subscription-led 15.8 events E&F: £4.3m Info Svc: £0.8m Disposal of MBI 184.5 (January 2015) 15.3% 1.7 5.1 178.4 0.7 H1 2015 Acquisitions FX Timing H1 2015 LFL Exhibitions Subscription Subscription- H1 2016 LFL Acquisitions H1 2016 & Disposals Differences & Festivals and led & Disposals Transactional Information Services 11
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