Cannes Lions – The Delegate Experience Networking Learning 9.5k Delegates in 2015 Inspiration Celebration 21
Cannes Lions – The Awards 22
Cannes Lions – The Awards 21 Sections 40k Entries and 18 Grand Prix Awarded in 2015 BRANDED CONTENT CREATIVE 0.04% Grand Prix & ENTERTAINMENT CREATIVE DATA EFFECTIVENESS CYBER DESIGN Probability 18 of Winning DIRECT FILM FILM CRAFT HEALTH & WELLNESS INNOVATION 184 Gold MEDIA MOBILE OUTDOOR PHARMA PR 328 PROMO & TITANIUM & PRESS PRODUCT DESIGN ACTIVATION RADIO INTEGRATED Silver 6 Awards Shows 534 Bronze 3,964 Shortlist 40,118 Entries Work Created 23
Why Cannes Lions Works 1 Global No.1 market position 1 “Must Attend” Festival Launched Lions Health in 2014 2 and Lions Innovation in 2015 Greater Ability to 2 6 Advertiser/Tech Address Platform and Segments and More than 40k entries and 9k 3 General Markets with delegates in 2015, growing at 5% Industry New and 7% CAGR since 2012 Awareness Propositions 250 content sessions from 508 4 speakers in 2015 3 5 6,828 press articles June 2015, 5 Greater Press More Entries 28% more than the prior year Coverage and Delegates In 2008, Cannes Lions attracted 6 69% of the worlds top 100 4 advertisers by spend; in 2015, it More, Better attracted 80%, representing Content $106bn in advertising spend 1 1 Identification of top 100 advertisers based on Advertising Age DataCenter’s Global Marketers 2014 report which includes a lis t of the 100 largest global marketers by worldwide measured-media spending in 2013. The same list has been compared with Cannes Lions paying delegates in 2008 and 2015. 24
Who Are Our Customers 2015 Customer Breakdown by Region 1 USA 26% Rest of the World 41% 10% UK 7% 2% 3% 4% 4% 4% Brazil India France Australia Germany Japan 1 Delegates and Entries combined value. 25
How We Generate Revenue £42.5m 2015 Revenue Award Entries Delegates Sponsorship Services (1) 8% 9% 39% 44% Fee paid to enter work for Includes trophy sales and Fee paid to attend and Fee paid by companies to awards online archive of historic network at events promote their business entries 26
Key Drivers of Organic Growth X Grow Customer Numbers Grow Revenue per Customer Grow Volume Value-based Pricing 1 2 Continuous Product Improvement and Development 3 27
Grow Volume 1 Number of Cannes Lions Entries Number of Cannes Lions Delegates CAGR CAGR 5% 7% 40,118 9,531 7,880 34,301 2012 2015 2012 2015 28
Value-based Pricing – Delegates 2 CLASSIC NETWORKING LIONS HEALTH INNOVATION ENTERTAINMENT A full week of Cannes New for 2015 A full New for 2014 Life- New for 2015 Ideas at New for 2016 Lions talks, networking, week of exclusive changing creativity for the intersection of data Exploring the ways Awards Ceremonies, networking the healthcare and technology talent and storytelling Galas and the opportunities. Meet and communications industry can elevate content exhibitions. connect with Cannes into the cultural Lions delegates from mainstream and focus agencies and brands on unskippable from all over the world. creativity € 3,050 € 1,495 € 1,495 € 1,495 € 1,495 STANDARD add € 1,000 to extend to a complete € 4,050 N/A N/A N/A N/A GOLD Limited availability € 6,800 N/A N/A N/A N/A PLATINUM Sold out 29
Value-based Pricing – Results to Date 2 Cannes Lions Award Entries Yield Cannes Lions Delegates Yield CAGR 10% CAGR 8% 2012A 2015A 2012A 2015A 30
Continuous Product Improvement and Development 3 Additional Segments 2013 2014 2015 2016+ 31
Case Study: Lions Health 3 Year 2 KPIs (2015) 420 Delegates 1,862 Entries € 1.8m Revenue 32
Case Study: Lions Innovation 3 Year 1 KPIs (2015) 485 Delegates 63% of Innovation Customers are New to 845 Cannes Lions Entries 25% of Innovation Customers from C-Suite € 1.9m Incremental Revenue 33
Summary 1 2 3 No.1 Advantaged Strong Market Position Business Model Growth Prospects 34
WGSN Jose Papa The essential, global, platform for fashion that enables customers to plan and trade their ranges effectively 35
WGSN 2015 Revenue Transactional Product £14.2m Exhibition Products Subscription-Led £82.4m Products £73.8m Congress Products £21.7m Subscription Products £80.7m Festival Products £46.3m WGSN, £60.5m 36
The Needs WGSN Serves Planning the Range Trading the Range Design on-trend Design on-trend for in-season drops Designers Buy on-trend Buy on-trend for in-season drops Buyers Define range and quantities Set 'right' prices and discount levels Merchandisers Make 'in-flight' decisions Strategy & Define 'right' positioning (in-season drops, when to discount, etc.) C-Suite 37
The Product Suite WGSN Platform Mindset Uses crowd Trend forecasts and Trend forecasts and Retail price, range Advisory service sourcing to identify design inspiration design inspiration and colour that helps clients best-sellers/dogs 13 product architecture interpret the 17+ million hi- Can return high categories analytics based on implications of res images volume of tests in Launched 2010 and over 100m SKUs global trends on Over 4k reports 48h relaunched 2015 tracked daily their range annually Launched 2015 Launched 2012 Launched 2013 Designers Buyers Merchandisers – Strategy/CXO – Target User 38
WGSN in Action – The Kimono Trend Identified Buyers Briefed Trend Confirmed Aggressive Stocking Strong Sales WGSN Street Shots WGSN Key Items S/S 14 WGSN Key Item Catwalks S/S WGSN Retail Analysis S/S 14 Retail News ’ Identified at Festivals and Highlighted as a Key Item 14 ‘Kimono Blouse’ Identified New Look sells 40k Women’s Youth Top 5 Tops for S/S 14 Identified as a Key Inspiration as one of S/S 14 Most Kimonos a Week to on the Catwalk Popular Store Deliveries Boost Sales 9% Feb 2013 Apr 2013 Oct 2013 Mar 2014 Aug 2014 39
The Criticality of Planning and Trading the Range Effectively Getting it Wrong Getting it Right 2014 2015 New Look sold 40,000 kimonos a week for 13 weeks, equating to one ‘Tilly’ cardigan every five seconds “Driven by the fact that we hit key trends effectively” “We didn’t have the right cardigan” CEO of J.Crew CEO of New Look LFL sales up 9% Net loss of $426m Q1 2015 Underlying operating profit up 38% 40
The WGSN Process WGSN Unique Filtered through Supplemented by Global Influences Global our People Big data Analytics Trend Forecast Catwalk shows Global specialists WGSN image and WGSN’s unique reports library trend days twice per Expert collaborators Influential blogs year Images mapped in Digital/magazine Catwalk Analytics Two-year vision and subscriptions fashion forecast WGSN INstock data Trade shows 400 reports per GA Big Query analysis Influential festivals month of report views Mindset projects Research trips Street shots in major cultural hubs Constant social media monitoring 41
How WGSN Works 1 Unrivalled range of products; 1 Better, More Time on Site per Active User Comprehensive +18.9% YoY/ Over 4,000 Offering reports in 6 languages 6,253 customers in 2015 2 2 5 Greater Ability No large-scale global More 3 to Invest in competitor Customers Product 1.14 products per customer in 4 2015 vs. 1.01 in 2012 £5.3m spent in Opex/Capex 5 on product 2015 4 3 No.1 Greater Ability Status as the to Penetrate Global Trend and Cross-Sell Authority 42
Our Customers 2015 Subscription by Customer Type 2015 Subscription by Region South America 9% Other 18% Consumer EMEA 4% 39% Products 24% APAC Fashion 5% Materials 55% and Textiles 17% 27% Fashion Wholesale North America “ Designing without WGSN is like being a surgeon “WGSN is like the Bloomberg for investment banking. I without the best technology and the best medications. will not plan our product or market to clients without Why would you ? ” WGSN’s help.” Francine Candiotti, Design Director, Fila Andy Zhong, Director of Overseas Development, Prosperity Textiles (HK) Ltd 43
Strong Retained Customer Value Key Milestone Retained Customer Value Dec 2013: Stylesight acquisition • Aug 2014: Unified product Launch • 92% Aug 2015: Auto- renewal launched across client base • 89% Mar 2016 : Launch of a single multi-product platform • 84% 2013 2014 2015 Value Retention Rate (%) Note: Customer Value Retention is calculated as the in-month subscription product revenue by customers who were also customers a year ago, divided by total subscription product revenue in the month one year previously. 44
How We Make Money £60.5m 2015 Revenue Subscription Advisory 5% 95% Fee paid for annual Fee paid for bespoke subscription contracts to customer work access WGSN products 45
Positive Financial Dynamics Auto Renewal Built-in Price Escalator Bill Subscriptions Up-front Strong Cash Profile Make Once, Sell Many Times High Incremental Margin High Retention High Revenue Visibility 46
Key Drivers of Organic Growth X Grow Customer Numbers Grow Revenue per Customer Continual Product Development 1 Up-Sell and Cross-Sell 2 47
Continual Product Development - Example 1 INStock v3 48
Grow Revenues per Customer – Up-Sell and Cross-sell 2 Mindset Revenues Example £m 2.9 >9x Drive Up-sell 0.3 2012 2015 Lifestyle & Interiors Customers Example Number of Cross-sell to 907 customers WGSN Fashion then 125% CAGR Up-Sell 180 2012 2015 49
A Critical Workflow Tool for Our Customer 1 2 No.1 Self-reinforcing Market Position Suite of Products 3 4 Attractive Strong Financial Dynamics Growth Prospects 50
Natasha Christie-Miller Provides critical information and access to the right people 51
Information Services - Plexus Groundsure 2015 Revenue Product Type Plexus Brands £14.2m Planet Retail • Subscription Glenigan • DeHavilland • Transactional • Groundsure Health Service Journal • Retail Week • Subscription-Led MEED • Products Nursing Times • Drapers Exhibition Products • £73.8m Subscription-Led Construction News £82.4m • Products NCE • £73.8m Subscription-Led Architects Journal Architectural Review • LGC • Congress Products MRW • Retail Jeweller £21.7m • Ground Engineering • Plexus Subscription HVN/RAC • Festival Products Products £46.3m £20.2m Subscription Products £80.7m 52
Needs Served Strategic and Tactical Decision-making Business Development 1 2 Learning and Development Belonging 3 4 53
Key Plexus Product Introduction Video 54
How We Make Money – Subscription Products £20.2m 2015 Revenue Subscriptions Advisory (1) 9% 54% 91% Fee paid to access content Bespoke consultancy 55
Key Subscription Products Market-leading Positions Helps FMCG and professional services customers How it helps it Helps clients identify and win construction identify and execute sales and new market clients contracts and leads opportunities with retailers Strong Value Retention Rate: 84% Value Retention Rate 79% retention rates ARPC: £28.0k ARPC: £3.8k and ARPC Blue Chip Client Base Glenigan 2.0. Continued Migration of customer base to a single Product Analysis on the actions and views of 90,000 interface, with enhanced search Development shoppers in 15 markets. functionality, deliverable across all media devices 56
How We Make Money - Subscription-Led Products £73.8m 2015 Revenue Conferences & Subscriptions Advertising Advisory Awards (1) 4% 29% 32% 22% 35% 36% Revenue related to Bespoke and off the shelf Fee paid to access content recruitment and marketing Fee paid to attend, enter reports (online + print) solutions work, sponsor and take tables (online + print) 57
Revenue Streams Increasingly Robust Subscription-Led Revenue Breakdown 1% 4% 4% 7% 9% 16% 4% of 29% 16% 43% Group 29% 28% 19% 35% 30% 29% 2008 2010 2015 Events Subscriptions Print Advertising Digital and Other Advertising Advisory 58
How We Grow Subscription-Led Products X Grow Subscribers Grow Revenue per Subscriber Focus on Highest-growth Products 1 Drive Subscriptions as the Foundation 2 Drive Scale, Repeatable Awards and 3 Conferences 59
Focus on Highest-Growth Products 1 Growth Drivers Other Products Focus Implies: HSJ, Retail Week, Nursing Products 11 Other Products Times Focused capital allocation 2015 Revenue £27m £47m Organisation structure and time 2013-15 5% -1% 1 Revenue CAGR orientated to Results of Focus growth drivers 2013-15 Revenue CAGR 13% 2% (ex print advertising) Print Advertising 10% 19% as % of Revenue Subscription and Events 65% 64% as % of Revenue 1 Excludes AME (disposed 2013) and MBI (disposed 2015). 60
Key Subscription-Led Products Market-leading Positions Established Established 1892 1988 Well-established Brands >17k Subscribers >8k Subscribers 2% 3% Advisory 16% 26% 7% Digital and Other 14% Advertising 24% Attractive Revenue Mix Print Advertising 29% Subscriptions 50% Events 29% 39% 40% Transitioning to Corporate Subs Model Corporate Subscriptions Corporate Subscriptions (ex. HSJi) (ex. Retail Week Prospect) Increasing Adoption of High-Value £9.3k £943k £12.7k Data Product Extensions First 5 Months 2015 Billings ARPC ARPC 61
Drive Subscriptions 2 Product Corporate High-Value Data 1 2 Sales & Marketing 3 4 Development Product Extensions Subscriptions Improved product quality Improved acquisition Convert small numbers of funnel individual subscribers into ARPC = £12.7k single corporate subscription £943k billings 2015 Retention first approach package 33% of our subscriptions are part of a corporate 40 customers at ARPC of £9.3k, five Our corporate subscriptions months post launch have a value renewal rate of 95% 62
Drive Subscriptions cont. 2 Strong Subscription Volume Growth 95,344 Number of 6% CAGR Subscribers 85,477 83,300 80,222 2012 2013 2014 2015 63
Drive Scale, Repeatable Conferences and Awards 3 Example: Retail Week Live and Awards “Everybody recognises that within the retail industry this is the top event.” Ian Filby, DFS “It would be unthinkable not to be here.” Richard Boland, Retail Trust £2.9m 2015 Revenue for RW Live and Awards 15% 2015 YoY Growth for RW Live and Awards 64
Transactional Product - Groundsure Needs Served Address the needs of two primary groups: Conveyancers Architects/Engineers Assess risks related to: Flood Contaminated Land Ground Stability Planning Radon etc. 65
How We Make Money – Transactional Product £14.2m 2015 Revenue Transactional (1) Digital Reports Insight 17% 83% Commercial 18% Residential 65% Interactive online planning Fee paid for reports tool for conveyancers, engineers and architects 66
Our Digital Reports Sales Model - Groundsure 2015 Customer Breakdown Primary Sales Model Direct 19% Groundsure Reseller Solicitor Resellers 81% Provider of One-stop shop Acts on behalf of digital for solicitors purchaser environmental requiring requesting & other risk Environmental appropriate reports reports from searches and Groundsure, passing through Local Authority costs and other searches 67
How We Grow: Digital Reports Key Volume Growth Drivers Residential Commercial Transaction Volume Transaction Volume Higher quality products Rebased to 100 Rebased to 100 Great customer relationship Great user training More resellers 170 More share within resellers 164 138 Add-on reports 133 Volumetric pricing 130 114 125 112 121 109 111 104 100 100 100 100 2012 2013 2014 2015 2012 2013 2014 2015 Groundsure Report Sales Groundsure Report Sales Market Transactions Market Transactions 68
Summary 1 2 3 Addressing Digital Products Clear Customer Subscriptions Focus Accelerating Needs Growth Opportunities 69
Spring/Autumn Fair Duncan Painter The UK’s largest trade exhibition 70
Spring/Autumn Fair and Money20/20 2015 Revenue Transactional Product £14.2m Spring/Autumn Fair £33.1m Subscription-Led Products Exhibition Products £73.8m £82.4m Congress Products £21.7m Subscription Products Festival Products Money20/20 £18.7m £80.7m £46.3m 71
Spring/Autumn Fair: Gateway to UK Retailing Spring Fair Autumn Fair UK’s biggest trade exhibition UK’s second biggest trade exhibition 13 show sections 8 show sections 5 days at NEC in Birmingham in February 4 days at NEC in Birmingham in September 2.7k 64k 1.4k 28k Exhibitors Visitors Exhibitors Visitors 72
How Spring Fair Works Jewellery & Watch Contemporary Gift & Home Birmingham Fashion Jewellery Accessories & Luggage Body & Bath Gift, Home & Volume The Summerhouse Art & Framing Greeting & Stationery The Party Show Outdoor Living & Leisure Children Gifts, Toys & Gadgets Outdoor Living & Outdoor Living & Leisure Leisure Linkway Gifts Christmas Gifts, Floral & Seasonal Decorations Gift & Home 73
Who Are Our Customers Over 60,000 Visitors Attended Spring Fair in Exhibitor Breakdown by Show Sector 2015 74
How We Make Money £33.1m 2015 Revenue 76% stand revenue Stand Space Services contracted within (1) three months of 7% the previous year's event 1 Positive cash flow 93% throughout All revenues derived from exhibitors; free for Fee paid for services Fee paid by exhibitors for visitors (e.g. standbuild commission, stand space online profiles, insurance) 1 Revenue contracted three months post Spring Fair 2015 as a proportion of total Spring Fair 2015 stand revenue. 75
Key Drivers of Growth X Grow Customer Numbers Grow Revenue per Customer Seize Opportunities by Constantly Editing Show 1 Drive Quality of Visitors 2 Charge Differently Based on Stand 3 Types and Locations, and Up-sell 76
Continuous Editing of the Show 1 Home Section Kitchen and Dining Section At 2014-15 show: Moved Home section Revenue Revenue to Hall 1 giving room YoY % YoY % 55% 12% to expand Moved Kitchen and Dining Section to Hall 9, generating more footfall as the area was connected to Gifts section (3%) (12%) 2014A 2015A 2014A 2015A 77
Drive Quality of Visitors 2 Visitor Spending Power 1 Improved Visitor Targeting £bn CAGR 3.3% 14.2 14.0 13.3 Visitor Marketing via Exhibitors 2012A 2013A 2014A Improved Visitor Experience £5.3m per exhibitor 1 Buying budget has been estimated by the Company by asking visitors at Spring / Autumn Fair to select one of a number of pre-defined ranges to indicate their budget for the relevant year during event registration. The midpoint within each range has been multiplied by the number of visitors selecting that range (scaled to total as a small proportion chose not to answer) and added to the product of midpoint and number of visitors for each other range to arrive at a aggregate estimated figure for buying budget. 78
Price Differentiation and Up-Sell 3 Value-based Pricing and Up-Sell Value Retention Sqm per Retention customer Rate 42.5 40.5 40.7 39.5 92.8% CAGR 250 Yield/sqm 2.8% (£) 86.4% 239 237 82.2% 230 2012 2013 2014 2015 2013 2014 2015 79
Money20/20 Duncan Painter The leading global congress series for payments and financial services innovation 80
The Payments Industry is Evolving Rapidly Mobile Payments Crypto Currencies Card-Linked Deals Cloud-based Payments Frictionless Identity Mobile Money Transfers Low-cost Remittance Mobile Wallets Smart Terminals Platforms 81
How Money20/20 Works Attracts “The place to be for great attendees insight into the future of payments and to meet and exhibitors with all the big hitters of from the whole the industry. A must eco-system attend conference.” GM of Retail and Prepaid, Paypal Provides a platform Attracts C-suite “Best event ever!” or new product attendees and and partnership speakers Network MD, announcements Effect Bain Capital Ventures “It completely blew me away, it’s head and Attracts a large shoulders above anything number of start- else” CMO, ups and early- ZNAP stage companies and investors Note: Graphic embodies Management’s view of network effect within event. 82
How We Make Money £18.7m 2015 Revenue Delegates Stand Space Sponsorship Other 2% 13% 53% 33% Fee paid for exhibition space Fee paid by companies Commission Fee paid to attend and meeting rooms to promote their business and other services 83
The Delegate Proposition 598 speakers in 2015 4 content streams per day, varying by day, including Risk & Compliance Bank & Non-Bank Disrupters Mobile Payments and Security Marketing Services Payments Disruptions Entrepreneurship & Innovation Retailers: What’s in store 385 exhibitors 10,426 attendees with whom to network Daily demos, case studies & announcements 84
The Exhibitor and Sponsor Proposition Showcase products to over 10,000 attendees Raise brand awareness Host meetings Product and partnership announcements 85
Money20/20 Introduction Video 86
Volume Growth Volume of Paying Delegates Volume of Exhibitors CAGR CAGR 78% 71% 8,921 385 77 1,561 2012 2015 2012 2015 87
Key Drivers of Organic Growth X Grow Customer Numbers Grow Revenue per Customer Continuously Improve Congress Quality 1 Sales and Marketing Excellence 2 Geo-cloning 3 88
Geo-cloning – Money20/20 Europe (April 2016 ) 3 3,700 attendees, from over 70 countries over 200 sponsors 420 speakers, over 60% CEOs/founders: Visa Europe BBVA Western Union ING 89
Summary 76% of Revenue Spring/ Over 90% Largest Trade Contracted Autumn Exhibitor Value Exhibitions in UK within Three Fair Retention Months 1 Money Market Leading Strong Growth Geo-clone 20/20 Payments Congress Characteristics Opportunities 1 Refers to three months post Spring Fair 2015 show. 90
Group Financials Insert Image Mandy Gradden 91
Our revenue model Exhibitions & Festivals Information Services 2015 Revenue: £150.4m (47% of Group) 2015 Revenue: £168.7m (53% of Group) 2015 EBITDA: £56.9m (57% of Group) – Margin: 38% 2015 EBITDA: £42.8m (43% of Group) – Margin: 25% 13 Product Lines 19 Product Lines 2015 Revenue breakdown 2015 Revenue breakdown Services 1 Conferences £16m & Awards £27m 10% 16% Print Advertising £12m (<4% of Group) 7% 20% Delegates Digital £31m Stand Space Advertising 48% £73m & Other 7% Marketing 58% Services £12m 8% 8% Subscriptions £97m Transactional Sponsorship 4% £14m £12m 13% Advisory £7m Award Entries £19m Note: All financials as reported. Adjusted EBITDA before deduction of corporate costs of £8.8m. 1 Including hotel and stand build commission, exporter introduction services and archive services. 92
Strong revenue visibility Percentage of Secured 2015 Revenue Information Services Exhibitions and Festivals End of H1 End of H1 95% 91% 90% 88% 87% 83% 83% 79% 76% 75% 67% 64% 63% 60% 55% 46% Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 93
Revenue Performance through the Recession Group Underlying Revenue Bridge from 2008 to 2012 1,2 YoY Growth £m (12%) 1% 6% 8% 0.8 225.8 221.6 (16.2) 17.0 0.9 (0.2) 208.3 (10.1) 13.1 9.0 195.3 197.3 (3.0) (7.1) YoY Growth (6%) 5% 7% 9% Margin Margin Margin Margin Margin 36% 40% 35% 32% 26% 1 Underlying revenue is defined as reported revenue less revenue from products subsequently disposed of or discontinued. 2 Core revenue is defined as reported revenue less revenue from acquisitions, disposals and discontinued operations. 94
Key Financial Highlights Reported Revenue and Growth Adjusted EBITDA and Margin Organic Constant Currency Revenue Growth Margin 6% 28% £m £m 7% 27% 7% 319.1 312.7 90.9 85.3 25% 271.4 69.0 25% 168.7 22% 173.9 0.5% 42.8 38.9 153.3 20% 30.6 38% 56.9 55.3 40% 150.4 13% 138.8 45.5 39% 118.1 (7.1) (8.9) (8.8) 2013 2014 2015 2013 2014 2015 Exhibitions & Festivals Information Services Exhibitions & Festivals Information Services Corporate Costs 95
High Level Income Statement Reported Growth Headlines £m 2015 2014 Reported Organic 1 Exhibitions & Festivals 150.4 138.8 8.4% 13.1% Strong Exhibitions & Festivals Organic • Information Services 168.7 173.9 (3.0)% 0.5% revenue growth at 13%. Reported revenue Revenue 319.1 312.7 2.1% 6.1% growth of 8% impacted by currency headwinds. Exhibitions & Festivals 56.9 55.3 2.8% 10.5% margin 37.8% 39.9% Information Services revenue broadly flat on • Information Services 42.8 38.9 10.0% 15.4% organic basis (or up by 3.5% excluding margin 25.4% 22.4% declines in print advertising). Reported Central costs (8.8) (8.9) revenue growth impacted by both currency Adjusted EBITDA 2 90.9 85.3 6.6% 14.0% and disposal of MBI. margin 28.5% 27.3% Depreciation (17.5) (18.1) Exhibitions & Festivals margins impacted by • foreign exchange movement and investment Adjusted operating profit 73.4 67.2 in Money20/20 Europe. Amortisation/impairments (29.5) (26.6) Exceptional items (11.0) (18.0) Information Services margins strongly up on • Share-based payments (0.5) - full year of Stylesight efficiencies despite Operating Profit 32.4 22.6 structural decline in print advertising. Gain on disposal 4.8 - Net finance costs (28.8) (28.0) Profit before tax 8.4 (5.4) Tax 7.7 25.2 Profit after tax 16.1 19.8 1. Organic growth is calculated to allow the reader with a more meaningful analysis of underlying performance. The following adjustments are made: (a) constant currency (restating FY14 at FY15 exchange rates), (b) event timing differences between periods (if any) (c) excluding the part-year impact of acquisitions and disposals. 2. Adjusted for impairments, share-based payments and exceptional items. 96
Revenue Growth – by Segment Acquisition of RetailNet Group (June 2015) £1.8m 6.1% Disposal of MBI (January 2015) £0.7m £m 319.1 4.3 4.9 (-3.0%) 2.6 Disposal of MBI (+3.5%) 316.5 (January 2015) 312.7 0.5% 17.3 11.1 E&F: £(5.7)m (+13.1%) IS: £2.8m 2.9 298.6 2014 Actual Acquisitions FX 2014 LFL Exhibitions Information Information 2015 LFL Acquisitions 2015 Actual & Disposals & Festivals Services - Services - & Disposals ex Print Print Advertising Advertising 97
EBITDA Growth – by Segment Acquisition of RetailNet Group (June 2015) £0.4m £m Disposal of MBI (January 2015) £0.1m 14.0% 90.9 90.4 Disposal of MBI (January 0.5 2015) £(2.7)m 5.6 +15.4% E&F: £(3.8)m 85.3 Info Svc: £0.4m 2.7 5.4 +10.5% 3.3 79.3 2014 Actual Acquisitions FX 2014 LFL Exhibitions Information 2015 LFL Acquisitions 2015 Actual & Disposals & Festivals Services & Disposals 98
Margin Development Adjusted EBITDA Margin Commentary Exhibitions & Festivals margin: • Exhibitions Information Group & Festivals Services Currency headwinds impacted reported margin • given Euro revenues and high sterling cost base. 2014 39.9% 22.4% 27.3% In line with prior year – if stated on a constant currency basis. M&A impact (0.1)% 0.1% FX impact (1.2)% (0.2)% (0.9)% 2015 margin includes £0.7m of investment in • Money20/20 Europe (0.5)% (0.2)% Money20/20 Europe (to be held in April 2016). WGSN cost synergies 1.8% 1.0% Print decline (1.1)% (0.6)% Information Services margin: • Other (0.4)% 2.6% 1.8% Has strengthened in part through the full year • 2015 37.8% 25.4% 28.5% impact of cost efficiencies following WGSN’s combination with Stylesight and launch of the single product. Counteracts negative impact from decline in print • advertising revenues. Top-line growth, together with operational • leverage inherent within in the business, responsible for remaining 2.6% of expansion. 99
Currency Exposure Currency Distribution Revenue Costs Adjusted EBITDA Sensitivity Analysis 2015 Impact FX Rates Each 1% movement in Euros to the When comparing 2014 and 2015, The weighted average rate and Pounds Sterling exchange rate has a changes in currency exchange rates closing exchange rates for the two c.£0.6m (2014: £0.6m) impact on had an adverse impact of £2.9m main currencies were as follows: revenue and a circa £0.4m (2014: (0.9%) on Group revenue and £3.3m £0.4m) impact on Adjusted EBITDA. (3.7%) adverse impact on Group Adjusted EBITDA. Weighted Closing Each 1% movement in US Dollars to vs £ 2015 2014 2015 2014 the Pounds Sterling exchange rate has a c.£0.7m (2014: £0.6m) impact on Euro 1.40 1.23 1.36 1.28 revenue and a circa £0.3m (2014: US Dollar 1.53 1.64 1.48 1.56 £0.2m) impact on Adjusted EBITDA. 1. We do not hedge our income statement currency exposure. 2. Our post-IPO debt facilities are denominated c.50% in EUR, 25% in GBP and 25% USD, broadly correlated to EBITDA generation. 100
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