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Intelligent Media United Business Media. 2 2003 Highlights Strong profit growth Effective cost management Improving yields and revenue Successful investment.

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Presentation on theme: "Intelligent Media United Business Media. 2 2003 Highlights Strong profit growth Effective cost management Improving yields and revenue Successful investment."— Presentation transcript:

1 Intelligent Media United Business Media

2 Highlights Strong profit growth Effective cost management Improving yields and revenue Successful investment programme Outlook positive

3 *before amortisation of intangibles and goodwill and prior year exceptionals Financial Results Turnover (£m) Profit before tax * (£m) EPS * (p) Operating margin * (%) Dividend per share (p) Net cash (£m) Change % (5.9) (50.3) 12 months to 31:12 (3.0) 53.1 Underlying % 3

4 United Business Media 4 Financial Results Financial Results Progress accelerated in H2 Turnover (£m) Operating profit * (£m) Profit before tax * (£m) EPS * (p) Operating margin * (%) 2003H H2 Change % Underlying % *before amortisation of intangibles and goodwill and prior year exceptionals

5 United Business Media 5 The Last Three Years The Last Three Years Transforming the business model Business fundamentally re-engineered Reduced 2000 fixed cost base by over 30 per cent Strengthened market position Yields defended Increased organic investment Strategic, well priced, acquisitions Margin targets per cent target secured Medium term target of 15 per cent Maximised operating cash inflow Balance sheet strength

6 United Business Media Recovery Underway Publishing and exhibitions Underlying healthcare revenue up by 31 per cent H2 continuing tech revenue recovers to 2002 levels Asia post-SARS H2 ahead of 2002 CMPi achieves 19 per cent margin with significant cost savings UAP delivers 10 per cent profit growth

7 United Business Media Recovery Underway News Distribution US wire volumes recovering towards year end Yields improving Significant restructuring and investment costs Market Research Syndicated and continuous strong Healthcare recovering Major restructuring to improve margin

8 United Business Media 8 Trading Outlook Trading Outlook H2 trends continuing Publications and exhibitions Improving tech climateGrowth in healthcare Asia returns to pre-SARS volumesUK business growing margins News distribution Volumes and yields improving Eliminating losses in Europe Market research Growth in year end order book Restructuring to improve margin and revenue growth Acquisitions delivering

9 FINANCIAL REVIEW

10 United Business Media 10 Turnover (£m) Operating profit * (£m) Net Interest (£m) Other finance expense (FRS17) PBT * (£m) Taxation (£m) EPS * (p) Dividend per share (p) Average $: £ rate Financial Results Change % (2.1) 72.9 (16.0) (5.5) (22.7) (5.9) months to 31:12 *before amortisation of intangibles and goodwill and prior year exceptionals

11 United Business Media 11 Operating profit (before goodwill) Depreciation Capex Working capital/other Operating cash inflow Cash conversion 2002£m (10.9) % Operating Cash Conversion 2003£m (6.9) % 12 months to 31:12

12 Cashflow Operating cash inflow Dividends paid Tax received Net interest received Acquisitions and investments, net of disposals Payments relating to property and restructuring Foreign exchange Ordinary and B share repurchase Other Movement in cash 2002 £m 91.0 (14.4) (10.4) (35.1) 24.0 (7.4) (23.2) £m (26.3) (127.8) (23.1) 13.0 (2.6) (8.8) (47.0) 12 months to 31:12

13 £ Cash £ Debt $ Cash (in £) $ Debt (in £) Other Net Cash Loans to five Other financial expenses - FRS17 P&L Interest Breakdown of Net Cash and Interest 31:12:03 £m Interest £m (14.9) (526.9) (18.2) (1.6) 7.5 (14.8) (0.0) 8.8 (5.5)

14 Segmental Analysis Group Turnover Operating Profit TotalGrowth on Prior YearTotalGrowth £m Reported % Currency % Acquisition % Underlying %£m Reported % Underlying % CMP Media210.5(11.6)(7.5)1.0(5.4) CMP Asia44.4(13.1)(7.4) (8.0)20.3 CMPi (0.5)13.9(9.6) UAP (0.5) PR Newswire94.8(10.1)(6.8)0.0(3.4)13.4(22.5)(9.3) NOP World203.9(4.3)(4.4) Total746.7(5.9)(4.9)2.7(3.0) months to 31:12:03

15 United Business Media 15 Underlying 2003 Revenue Change Acquisitions £21.7m Biennials £1.8m SARS (£8.8m) Forex (£38.8m) Underlying Decline (£22.5m) (3.0%)

16 United Business Media 16 Geographic Segmental Analysis US 60%UK 30% EMEA 5% Pacific 5% Revenue Operating Profit UK 25% US 51% Pacific 11% EMEA 13%

17 United Business Media 17 Investment Net debt capacity increased to around £500m Minimum interest cover of 5 times Conservative approach to financing $375m of debt to be retired in 2004 Acquisition financial criteria 8% post tax hurdle rate Generally eps enhancing first full year Organic investment target paybacks Publishing and events in 1 to 2 years PRN and NOP in 3 to 5 years

18 United Business Media 18 Investments Delivering Investments Delivering On track to generate 2004 £13m operating profit Acquisition s Consideration £m CMPiBuilder / Barbour, Property Media81.0 CMP MediaOncology / Cliggott23.1 UAPThis Caring Business1.7 NOPEurisko24.1 Total129.9 Contributed £2.9m in 2003 profit

19 United Business Media 19 Operating profit/(loss) Investments Delivering Investments Delivering Organic initiatives Turnover H1 £m H2 £m Total £m (2.8)(1.3) (4.1)

20 United Business Media £m 2002 £m Change % 12 months to 31:12 * Turnover Operating profit (4.8) Audience share up to 6.6% Advertising share up to 8.1% Net book values: five£129.4 m Other investments £43.6 m * Unaudited

21 OPERATIONAL REVIEW

22 United Business Media 22 Margin Performance 2003 % 2002 % TOTAL CMP Media7.0- CMP Asia CMPi UAP PR Newswire NOP World9.58.4

23 United Business Media 23 Operating Profit (£m) Operating Margin (%) Professional Media: CMP Media Professional Media: CMP Media Turnover (£m) Change % (11.6) (6.8) months to 31:12

24 United Business Media 24 CMP Media Product Areas CMP Media Product Areas Percentage $ revenue change

25 United Business Media 25 CMP Media CMP Media 2003 Review Scale improvements in operating efficiency Increased market share to 28.9 per cent Yields firm, up 4 per cent in 03, 8 per cent in H2 Channel strong, also online and events Traction in organic product developments Over £10m in revenue in 2003 Adding £3m to operating profit

26 United Business Media 26 CMP Media CMP Media High Tech Ad page volumes % change on same month in prior year Large higher yielding titles trending better than total

27 United Business Media 27 CMP Media CMP Media 2003 Review - Healthcare CME, Print, Events, Online Healthcare H2 ad page volumes up 4 per cent Underlying revenues up 42 per cent in H2 Well positioned in fast growing sectors Psychiatry & Neurology Acquired leading Oncology titles Acquisition outperforming business case Benefiting from increase in new drug launches

28 United Business Media 28 Operating Profit (£m) Operating Margin (%) Professional Media: CMP Asia Turnover (£m) Change % (13.1) (8.0) months to 31:12

29 United Business Media 29 CMP Asia CMP Asia 2003 Review Post-SARS H2 performance well ahead of prior year SARS – recovered £3.8m in insurance Growth in China Successful Japanese acquisition (KSS) H2 growth in jewellery and shipping 14 new launches during 2002 & scheduled for 2004

30 United Business Media 30 Operating Profit (£m) Operating Margin (%) Professional Media: CMPi Turnover (£m) Change % months to 31:12

31 United Business Media 31 CMP Information CMP Information 2003 Review Underlying revenue down 9.6 per cent Underlying profit up per cent Significant costs savings drive margin to 18.7 per cent Successful new products £81m of acquisitions on track to deliver £9m 2004 profit

32 United Business Media 32 Operating Profit (£m) Operating Margin (%) Professional Media: UAP Turnover (£m) Change % months to 31:12

33 United Business Media 33 UAP UAP 2003 Review Delivered strong profit growth on flat revenues Achieved further operating efficiencies All major products grew profits Strengthening position in core markets Successful cross selling: Auto Exchange / E&M Strength of new products / online: DaltonsBusiness.com Integrated This Caring Business to plan Widens range of specialised titles

34 United Business Media 34 PR Newswire - News Distribution £m 2002 £m Change % Turnover America RoW Operating profit America RoW (2.7) (10.0) (10.2) (10.1) (16.6) - (22.5) (13.9) Margin (2.0) months to 31:12

35 United Business Media 35 Quarterly Newswire Volumes Quarterly Newswire Volumes Core US News Distribution in thousands H1 volumes down 8%, H2 just ahead of prior year k->

36 United Business Media 36 PR Newswire – News Distribution PR Newswire – News Distribution 2003 Review Message volumes up in Q No of US companies declined again (down net 300) During 2003 IPOs started overtaking delistings Discretionary releases increasing New product announcements up 9 per cent Newswire H2 yields up 1 per cent Margins held back in H2 due to restructuring and organics Europe and Asia challenging High operational leverage

37 United Business Media 37 NOP World - Market Research £m 2002 £m Change % Turnover America RoW Operating profit America RoW (7.7) 2.0 (4.3) Margin months to 31:12

38 United Business Media 38 NOP World – Market Research NOP World – Market Research 2003 Review Strong performances from syndicated and continuous Healthcare and ad hoc improving Underlying margin growth Restructuring to improve margin and drive key sector growth Strengthened management team Substantial investment in new products Eurisko acquired Leading position in Italy & new products for NOP network Rapid growth in online

39 United Business Media 39 Summary Business model transformed Yields and revenue improving Investment programme success Revenue and margin growth Investments delivering, more to come Trading climate improving 2003 Achievements 2004 Outlook

40 United Business Media 40 NOP World Growing The Future HealthcareFinancial Business & Technology Consumer & Retail Auto Technology Operations Human Resources Finance Brand Strategy Market Opportunity Customer Management Marketing Effectiveness Consulting Mystery Shopping MRI Syndicated Sales Client Focus: SECTORS Industry Expertise Client Expertise Client Penetration Key Account Management Client Satisfaction NOP World Growth


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