PRESENTATION 28 July 2016 STEPHEN A. CARTER Group Chief Executive - PowerPoint PPT Presentation

INTERIM RESULTS PRESENTATION 28 July 2016

STEPHEN A. CARTER Group Chief Executive Progress and Performance Resilience and Renovation INTERIM RESULTS PRESENTATION 28 JULY 2016 2

CONTINUED PROGRESS AND PERFORMANCE +2.5% Accelerating organic revenue growth… +4.7% Higher reported revenue… +6.3% Increased adjusted operating profit… +3.1% Growth in adjusted diluted earnings per share… +4% Increased interim dividend per share… 2.4x Robust balance sheet… ON TRACK FOR FULL YEAR GROWTH IN REVENUE AND ADJUSTED EARNINGS INTERIM RESULTS PRESENTATION 28 JULY 2016 3

DISCIPLINED DELIVERY IN THE PEAK YEAR OF GAP INVESTMENT £45-50m GAP Investment in 2016… £70-75m Cumulative GAP Investment by year- end… c£90m Total GAP Investment programme… c30 Product and platform workstreams in progress … >50 Individual product/platform upgrades over next 18 months… >35 Individual product/platform upgrades in Business Intelligence… ALL FOUR OPERATING DIVISIONS ON TRACK FOR 2016 GROWTH TARGETS INTERIM RESULTS PRESENTATION 28 JULY 2016 4

INCREASING RESILIENCE THROUGH GAP Talent Management, Sales, Technology, Graduates, Training, Incentives Product Mobile, Digital, Flexible, Data Rich, Analytical Tools, Search, APIs Platform CRM, Digital, Content, Data, Sales, Finance, Communication Structure Simplified Model, Cust. Focused, Data Oriented, Auth. Framework Portfolio Oriented around Verticals, Streamlined, Actively Managed M&A Targeted, Disciplined, Internationalisation, Scale, Vertical Strength OPERATIONAL FITNESS AND INCREASED CAPABILITY INTERIM RESULTS PRESENTATION 28 JULY 2016 5

VISIBILITY OF EARNINGS REVENUE BY GEOGRAPHY REVENUE BY CURRENCY REVENUE BY TYPE 2016 2016 2016 NORTH AMERICA 44% US DOLLAR / PEGGED 57% SUBSCRIPTIONS 38% REST OF WORLD 28% UK STERLING 28% EXHIBITOR 20% CONTINENTAL EUROPE 17% EUROS 8% UNIT SALES 21% UK 11% OTHER CURRENCIES 7% SPONSORSHIP & ADS 8% ATTENDEE 13% INTERIM RESULTS PRESENTATION 28 JULY 2016 6

OPERATIONAL FITNESS Sustainable Strong Cash Performance Generation Robust Underlying International Scale Growth INFORMA Predictable and Digital and Data Recurring Revenue Capability Operating Robust Balance Leverage Sheet INTERIM RESULTS PRESENTATION 28 JULY 2016 7

GARETH WRIGHT Group Finance Director INTERIM RESULTS PRESENTATION 28 JULY 2016 8

2016 PERFORMANCE AND PROGRESS +2.5% +6.3%  4% Increased Adjusted Accelerating Organic Revenue Increased Interim Dividend Operating Profit Growth Per Share +6.3% to £202.2m (2015: £190.3m) +2.5% vs +0.2% in H1 2015 and up 4% to 6.80p (2015: 6.55p) +1.0% in FY 2015 +3.1% Growth in Adjusted Diluted EPS +3.1% to 23.1p (2015: 22.4p) +4.7% 2.4x £67.7m Higher Reported Revenue Robust Balance Sheet Strong Underlying Free CashFlow +4.7% to £647.7m revenue Net debt/EBITDA 2.4 times (2015: £618.8m) £67.7m (2015: £116.4m) (2015: 2.4 times) CONTINUED FINANCIAL PROGRESS IN PEAK YEAR OF GAP INVESTMENT INTERIM RESULTS PRESENTATION 28 JULY 2016 9

DIVISIONAL PERFORMANCE ON TRACK Year-on-Year Year-on-Year H1 2016 H1 2015 Growth Organic Growth £m £m % % Revenue: Global Exhibitions 192.9 168.8 14.3 11.6 Academic Publishing 214.7 195.0 10.1 0.9 Business Intelligence 134.6 138.8 (3.0) (0.5) Knowledge & Networking 105.5 116.2 (9.2) (4.7) Group 647.7 618.8 4.7 2.5 Adjusted Operating Profit: Global Exhibitions 88.3 77.7 13.6 10.0 Academic Publishing 72.9 66.7 9.3 (3.5) Business Intelligence 26.9 28.2 (4.6) (4.4) Knowledge & Networking 14.1 17.7 (20.3) (27.7) Group 202.2 190.3 6.3 (0.7) Operating Margins: Global Exhibitions 45.8% 46.0% Academic Publishing 34.0% 34.2% Business Intelligence 20.0% 20.3% Knowledge & Networking 13.4% 15.2% Group 31.2% 30.8% INTERIM RESULTS PRESENTATION 28 JULY 2016 10

GAP INVESTMENT AND PERFORMANCE c£90m c£50m c£70m Total Programme Cash invested to date Approved to invest c30 c£5m c80% Project workstreams live P&L impact in H1 2016 Capex v Opex in 2016 30-40 15-20% 25-35% Total number of projects 2017 forecast ROI* 2018 forecast ROI* * ROI = Net P&L impact (Benefits – Opex – Capex depreciation)/ Cumulative investment INTERIM RESULTS PRESENTATION 28 JULY 2016 11

GAP RETURNS – ENTERING THE DELIVERY PHASE AP : Enhanced CRM AP : Researcher platform Lifecycle AP : Enhanced Content Scheduled Product/Platform releases AP : Research Management Networking AP : Unified Books and GE : Enhanced AP : Evidence-based Journals Experience Customer Insights offerings AP : Analytics GE : Market Maker AP : Data visualisation capability Platform GE : Customer Analytics Insights GE : Global Web GE : Enhanced digital GE : Sales order Platform marketing processing GE : Personalised GE : Marketing marketing GE : Global Data GE : Global Sales CRM Automation platform Platform K&N : CORE K&N : L&PD rollout K&N : E-commerce K&N : CORE web publishing & media enhancement rollout 3 BI : Agra Insight capabilities K&N : Salesforce K&N : Social platform platform upgrade K&N : CORE web enhancement enhancement rollout 2 BI : Crop Protection BI : E-Commerce Portal and data service K&N : Vertical K&N : Pricing Model platform Constellations BI : Fertilizer Portal BI : Next Gen Pharma 1 and data service BI : TAS 2 BI : LLI Re-platform and new data feeds BI : Next Gen Pharma 3 BI : SFDC Finance BI : Phase 3 release - AP : Book Content BI : Analytics POC and new data feeds Platform Migration FOL BI : Maritime Insight K&N : CORE web BI : Citeline authoring BI : Self Service BI : MAP platform rollout 1 Platform website BI : Early access BI : Agra Insight BI : Scrip Insight rolling Pharma BI : Shop Window BI : ID & Entitlement Platform Platform launches BI : 2 nd Pharma API BI : Commodities Portal BI : DMHC TM1 BI : Addition of SOC BI : CPQ platform and Data Services forecasting data upgrade launch K&N: Launch of CORE BI : Next Gen Pharma 2 BI : Pharma Insight BI : IEG Phase 2 BI : Addition of EPI BI : LLI Marketing Site platform and new data feeds data Products release BI : 1 st Pharma API BI : 3 rd Pharma API BI : Vertical Brand BI : DMHC disease BI : SFDC single BI : LLI data upgrade structure additions customer view upgrade launch and geo-location upgrade launch 2016 - 2018 INTERIM RESULTS PRESENTATION 28 JULY 2016 12

GROWTH IN ADJUSTED EARNINGS PER SHARE H1 2016 H1 2015 £m £m Revenue 647.7 618.8 • Adjusted EPS growth of 3.1% 202.2 190.3 Adjusted Operating Profit • Three key factors: Adjusted Operating margin 31.2% 30.8% Higher net interest: o Net interest (17.4) (12.1) － Long-term USD Private Placing Adjusted Profit Before Tax 184.8 178.2 financing Adjusting items (85.9) (59.3) Reported Profit Before Tax 98.9 118.9 － Higher average debt due to currency Adjusted Tax charge (33.4) (31.5) － Prudent treatment of interest on Effective Tax rate 18.1% 17.7% loan receivable Higher effective tax rate o 151.4 Adjusted Profit 146.7 Increase in shares issued o 23.1 Adjusted EPS (diluted) 22.4 6.80 Dividends Per Share 6.55 INTERIM RESULTS PRESENTATION 28 JULY 2016 13

STRONG UNDERLYING FREE CASH FLOW £m • One-off factors distort YoY comparison Academic Publishing timing o £116m GAP Investment up to £20m o Normalised cash tax rate o FX and US Private Placing impact o £68m • Underlying cash conversion strong • Full year cash flow on track YoY adjustments INTERIM RESULTS PRESENTATION 28 JULY 2016 14

ROBUST BALANCE SHEET £m £1055m • Increase in net debt principally due to FX USD at 30 June 2016 = 1.35 o £895m USD at 31 Dec 2015 = 1.48 o • Gearing in line with last year and within target range at 2.4x INTERIM RESULTS PRESENTATION 28 JULY 2016 15

FINANCING FLEXIBILITY AND VISIBILITY Debt Maturity Profile • Robust balance sheet 2.4x gearing at H1 o 450 Mix of bank debt and US PP debt o 400 >80% of debt US Dollar o 350 denominated 300 • Secure pension position 250 Defined benefit schemes closed o 200 No cash contributions in H1 o 150 Net liabilities of £15.6m o 100 Next triennial valuation reported in o 50 2018 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bank Loan (Drawn) * Private Placements BALANCED MIX OF FINANCING ENSURES FUNDING FLEXIBILITY AND VISIBILITY * The RCF is a 5+1+1 years facility INTERIM RESULTS PRESENTATION 28 JULY 2016 16

OPERATING DISCIPLINE Return On Capital Employed % 10 9.7% 9.3% 8.9% 9 8.8% 8.3% 8 7 6 2012 2013 2014 2015 2016 IMPROVING RETURNS PROFILE INTERIM RESULTS PRESENTATION 28 JULY 2016 17

PERFORMANCE SUMMARY Progressive improvement in organic revenue growth 1 Good growth in adjusted operating profit 2 Peak year of investment for future growth and capability 3 Growth in adjusted earnings with prudent treatment of loan note interest 4 Strong underlying Free Cash Flow, one-off factors in 2016 5 Robust balance sheet with secure pension position 6 Consistent dividend growth, in line with GAP commitment 7 ON TRACK FOR FULL YEAR GROWTH IN REVENUE AND ADJUSTED EARNINGS INTERIM RESULTS PRESENTATION 28 JULY 2016 18

STEPHEN A. CARTER Group Chief Executive Progress and Performance Resilience and Renovation FULL YEAR RESULTS PRESENTATION 11 FEBRUARY 2016