Informa Plc · LSE:INF
Informa — H1 2008 Earnings Presentation
27 slides from Informa's earnings presentation, Jul 28, 2008
Slide 1: Half Year Results
Half Year Results 30 June 2008 28 July 2008
Slide 2: Disclaimer
Disclaimer DISCLAIMER This presentation has been prepared by Informa plc (the “Company” or “Informa”) and comprises the slides for a presentation concerning the Company in relation to the interim results for the six months ending 30 June 2008 (the “Results”). The information contained in this presen
Slide 3: A Good Start to 2008
A Good Start to 2008 Organic revenue growth across all three divisions Strong cash conversion High quality of earnings – subscription income with high renewal rate High visibility of earnings – large deferred income balances Strong growth in LSEs to date and forward bookings Trading well – full year
Slide 4: Balanced Portfolio
Balanced Portfolio Revenue by type 17% • Portfolio built to outperform 29% • High levels of resilience • Minimal exposure to advertising • Broad geographical spread 37% 14% • High customer retention 3% • No significant exposure to any one vertical Subscriptions Advertising Performance Improvement Co
Slide 5: Publishing: Academic
Publishing: Academic • +95% renewal rates • Electronic distribution/delivery • Retrodigitisation • Peer reviewed • Pricing power 5
Slide 6: Publishing: Non-Academic
Publishing: Non-Academic • High renewal rates – 75-90% • Proliferation of high quality electronic data - Citeline - IGM - Datamonitor • Advertising revenue robust • Product development 6
Slide 7: Publishing: Datamonitor
Publishing: Datamonitor • Increased number of subscribers • High renewal rates – 87% • Continued growth • International expansion • Development of enhanced knowledge centres 7
Slide 8: Events : Exhibitions
Events : Exhibitions • 24 held to date • 20% revenue growth • 2009 forward bookings • Conference add-ons • Geographic and vertical diversity 8
Slide 9: Events: LSEs
Events: LSEs • Across many verticals – Finance, Energy, Telecoms & Pharma • Revenue growth of 4% • High margin • Brand strength 9
Slide 10: Events: Geo-Cloning
Events: Geo-Cloning •Cityscape •Super Return •COM 10
Slide 11: Events: Smaller Events
Events: Smaller Events • > 12,000 events per annum • Operations across 44 countries • Product in all significant verticals • Variable cost base protects bottom line 11
Slide 12: Performance Improvement
Performance Improvement • Government work – continues to grow; multi-year contract • US commercial - weakest area, pipeline strong – conversion taking longer • International – strong growth up 23% • Ability to adjust the cost base to protect operating profit 12
Slide 13: Financial Highlights
Financial Highlights • Revenue up 18%; adjusted operating profit up 21% • Organic revenue and adjusted profit growth of 4% driven by resilience of quality assets in current market conditions • Increased operating margin to 22.3% • Diluted adjusted EPS up 8% to 18.2p (2007 – 16.8p) • Dividend increas
Slide 14: Business Segments
Business Segments • Publishing – around 57% of Group profit; high margin particularly in academic; solid growth • Events – around 33% of Group profit; strong growth and high margins across LSEs • PI – 10% of Group profit; expected to be flat year on year 14
Slide 15: Income Statement
Income Statement Income Statement 2008 2007 Increase £’m £’m % Revenue 627.6 532.5 18 Operating profit 77.7 74.8 4 Amortisation 59.4 41.1 Reorg costs 3.0 - Adjusted OP 140.1 116.0 21 Margins % 22.3 21.8 Interest (net) (35.5) (20.4) Adjusted tax (27.3) (23.9) 77.3 71.7 8 Shares (m) 425.2 425.1 Adjust
Slide 16: Cash Flow
Cash Flow Cash Flow 2008 2007 £’m £’m Operating profit 77.7 74.9 Amortisation/Depreciation 67.2 47.8 Working capital (4.0) (28.4) Operating cash flow 140.9 94.3 Interest (28.3) (17.5) Tax (14.8) (11.0) Capex (20.8) (15.4) Acquisitions/Disposals 15.6 (5.1) Dividends (48.0) (37.8) Share issues (2.1) 3
Slide 17: Balance Sheet
Balance Sheet • Net debt/EBITDA 4.1x at 30/6/08 • Consensus for full year 3.75x(covenant 4.25x) • Comfortable headroom on financial covenants • Continual focus on working capital and cash management • Free cash flow £72.4m (2007: £50.2m) 17
Slide 18: Quality of Earnings
Quality of Earnings • Operating margin – increased to 22.3% • Subscription income – around 60% of publishing revenues • High renewal rates • Branded LSEs 18
Slide 19: Visibility of Earnings
Visibility of Earnings Deferred Income 30/6/08 30/6/07 Growth £’m £’m % Publishing 152 94 62 Events 84 73 15 PI 6 6 - 242 173 40 Full Year Revenue Visibility % % Publishing 73 61 Events 72 71 PI 49 52 68 62 19
Slide 20: Prospects
Prospects • 82% of expected 2008 subscription revenue already received • Revenue visibility ahead of this time last year and in line with Board expectations • LSEs continue to perform well • PI cost cutting will protect bottom line in H2 • Focus on cash conversion and debt reduction • Expected to be
Slide 21: Appendices
Appendices informa
Slide 22: Academic & Scientific
Academic & Scientific Academic and Scientific 2008 2007 Increase Organic £’m £’m % % Revenue STM 112.3 90.7 24 7 HSS 69.2 60.5 14 6 181.5 151.2 20 7 Adjusted Operating Profit STM 32.3 24.7 31 11 HSS 15.7 12.7 24 5 48.0 37.4 28 9 Adjusted Operating Margin 26.4% 24.7% 22
Slide 23: Professional
Professional Professional 2008 2007 Increase Organic £’m £’m % % Revenue Performance Improvement 108.6 109.7 (1) (1) Financial Data Analysis 45.1 31.2 45 11 Finance, Insurance, Law & Tax 51.8 48.8 6 5 205.5 189.7 8 2 Adjusted Operating Profit Performance Improvement 14.1 15.6 (10) (10) Financial Dat
Slide 24: Commercial
Commercial Commercial 2008 2007 Increase Organic £’m £’m % % Revenue Regional Events 152.3 123.6 23 4 Telecoms & Media 52.1 32.9 58 4 Maritime & Commodities 36.2 35.0 3 (2) 240.6 191.5 26 3 Adjusted Operating Profit Regional Events 29.4 22.1 33 4 Telecoms & Media 16.0 13.8 16 4 Maritime & Commoditie
Slide 25: Revenue by Type
Revenue by Type Revenue by Type 2008 2007 Increase Organic £’m £’m % % Events 235.0 216.3 9 4 Subscriptions 178.0 123.7 44 11 PI 108.6 109.7 (1) (1) Copy Sales 88.0 66.3 33 0 Advertising 18.0 16.5 9 3 627.6 532.5 18 4 25
Slide 26: Balance Sheet
Balance Sheet Balance Sheet 30 June 30 June 31 Dec 2008 2007 2007 £’m £’m £’m Intangibles and Goodwill 2,684.5 2,043.0 2,709.0 Fixed Assets 21.9 23.1 24.6 Investments & Other 35.2 33.1 36.3 Current Assets 286.1 244.2 280.0 Net Current Liabilities (552.3) (430.3) (528.0) Debt (1,219.7) (720.3) (1,244
Slide 27: Bank Covenants
Bank Covenants 30 June 31 Dec 2008 2008 Net debt/ EBITDA 4.75 x 4.25 x Interest Cover 3.50 x 3.75 x 27