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2002 PRELIMINARY RESULTS. Continuing turnover (£m) Continuing operating profit* (£m) EPS * (p) Dividend per share (p) Net cash (£m) Financial Results.

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Presentation on theme: "2002 PRELIMINARY RESULTS. Continuing turnover (£m) Continuing operating profit* (£m) EPS * (p) Dividend per share (p) Net cash (£m) Financial Results."— Presentation transcript:


2 Continuing turnover (£m) Continuing operating profit* (£m) EPS * (p) Dividend per share (p) Net cash (£m) Financial Results Financial Results Twelve months to 31 December Change % *before exceptionals and amortisation of intangibles (14.7) (20.6) (7.8) (41.7)

3 United Business Media Review Strong performances in CMP Asia, CMP Information, UAP and NOP UK Profit up 32.3 per cent to £44.9m CMP Media revenues stabilising Profit in Q4 Profit from US businesses down 58.1 per cent to £20.0m Continuing revenue and margin pressure at PRN and NOP Margins 8.2 per cent (8.8 per cent) H2 7.2 per cent (5.0 per cent)

4 United Business Media Review Further major action on costs £180m annualised cost savings since 2000 Market share gains, and yields holding up relatively well Cash conversion around 140% Tight controls of working capital and capex Stronger balance sheet, £94m net cash positive Continuing commitment to organic investment £20m on new product development Over 40 major launches

5 United Business Media 5 Trading Outlook Continued tough trading conditions Jan/Feb revenue generally following late 02 trends Professional media margins to benefit from cost savings News distribution still under pressure Market research underpinned by continuous businesses Revenue outlook clouded by geopolitical concerns Managing costs in line with revenues

6 United Business Media Performance and Growth Group margin boosted by efficient cost base 10 per cent target Maintaining new product investment Targeting further market share Strong cash generation Building value in investment portfolio Share buyback programme


8 United Business Media 8 Continuing turnover (£m) Continuing operating profit* (£m) Discontinued operating profit* (£m) Total operating profit* (£m) Net Interest (£m) Other finance expense (FRS17) PBT * (£m) Taxation* (£m) EPS * (p) Dividend per share (p) Financial Results Financial Results Twelve months to 31 December Change % *before exceptionals and amortisation of intangibles (20.1) (1.5) 95.9 (25.0) (2.1) 72.9 (16.0) (14.7) (20.6) (24.0) 36.0 (7.8)

9 United Business Media 9 Operating profit (before goodwill & exceptionals) Depreciation Capex Working capital/other Operating cash inflow Cash conversion 2002£m (10.9) % Cash Conversion Cash Conversion Twelve months to 31 December

10 Further Cash Flows Further Cash Flows Twelve months to 31 December Operating cash inflow Dividends paid B shares Tax refunded Net interest received Investments (including channel five) Payments relating to property and redundancy Payments relating to prior year disposals Foreign exchange Other Increase in cash in the period 2002£m 91.0 (14.4) (7.4) (13.6) (35.1) (19.0) 24.0 (1.0)

11 £ Cash £ Debt $ Cash (in £) $ Debt (in £) Other Net Cash Channel five Net Interest Other financial expenses - FRS17 P&L Interest Breakdown of Net Cash and Interest Interest % 31 Dec 2002 £m Interest £m 245 (16) 480 (637) (2.1) 16.9 (24.4) (2.1)

12 United Business Media 12 Exceptional Items Exceptional Items Impairment provisions CMP Media£60m NOP World£37m PR Newswire£17m Property Payments relating to prior year disposals 2002£ms

13 United Business Media 13 Segmental Analysis Segmental Analysis Twelve months to 31 December2002£m2002£m Group Turnover Operating Profit Change % Change % Underlying % Underlying % CMP Media CMP Asia CMP Information UAP PR Newswire NOP World Total Continuing (31.9) 4.3 (13.3) 1.2 (17.7) 9.3 (14.7) (9.4) (20.5) (51.7) (25.4) (20.6) (28.7) 5.2 (4.2) 1.9 (13.8) (10.6) (16.1) (16.4) (44.4) (21.0) (8.9)

14 United Business Media 14 Margin Performance H % H % H % H % TOTAL CMP Media6.5(6.2)(14.6)(0.9) CMP Asia CMPi UAP PR Newswire NOP World

15 United Business Media 15 Investment Net debt capacity around £400m minimum interest cover of 5 times conservative approach to financing Acquisition financial criteria cost of capital 8% generally eps enhancing first full year Review buy backs and special dividends Investment targets 2 to 4 year payback

16 United Business Media 16 Investment Performance Mixed performance from acquisitions cost synergies delivered revenues impacted by general US economic weakness £124m acquisitions in 2001 RoperASW (Custom) under performed Allison-Fisher (Auto) strong performance KSS in line with acquisition plan New product initiatives Started well in a difficult market – steady pipeline for 2003

17 United Business Media 17 Pensions Introduced FRS17 Pension deficit of £90.9m (£41.0m) 2002 £6.8m (£4.2m) charge Currently forecast to be around £12m in 2003 Approx 50:50 split between bonds and equities

18 United Business Media £m 2001 £m Change % Turnover Operating profit Trade Investments : Five Trade Investments : Five Twelve months to 31 December - Unaudited (4.5) (48.3) Audience share up to 6.5% (5.9%) Advertising share up to 7.5% (6.4%) Net book values: Five£120m Other investments £50m


20 United Business Media 20 Performance Scorecard 2002 Performance Scorecard 2002 Against UBM internal targets COST REDUCTIONS MARKET SHARE NEW PRODUCT DEVELOPMENT CMP Media CMP Asia CMPi UAP PR Newswire NOP World

21 Constantly Improving Operational Efficiency Constantly Improving Operational Efficiency Cost savings Vs 2000 fixed cost base August 2001 March 2002 August 2002 £60m £110m £165m 700 Staff 1400 Staff 1900 Staff Staff £180m February 2003

22 United Business Media 22 Shares of Major Markets CMP Media – strong growth Ad page volume 28.4% Vs 24.9% in 2001 NOP World – assessment of market share trends UK - holding share US custom and healthcare – lost ground US media – robust, all major contracts renewed Worldwide automotive – solid growth PR Newswire – gaining ground Global wire volumes: gained 2.2% to 40.0% US: holding firm YOY at 52% of earnings release volumes UK: from zero to over 10% of regulatory releases

23 Product Developments Optimize Netseminars Real Time CME Communications Design Conf PR Audit Intra Ifsec Shanghai Rental & Staging Matech Leather China Beauty Japan OMA Disclose MultiVu Xinhua Financial News MRI National Study - Hispanic Tech Confidence Barometer NOP Consulting LifeMatrix RoperASW Consumer Online Panel Scripdriver OMA Hispanic CME NOP Health Databases Shared Services Automotive Intentions Europe Thomson Alliance ProfNet Tbutton eWatch Influential Americans NewsDistribution ProfessionalMedia MarketResearch

24 United Business Media 24 Operating Profit Professional Media: CMP Media Professional Media: CMP Media Twelve months to 31 December Turnover (9.4)(7.8) (20.5)2002£m 2001 £m Change % Underlying % (31.9)(28.7) (16.4)

25 United Business Media 25 CMP Media CMP Media 2002 Review Delivered August revenue forecasts Moved into operating profit in Q4 Ad page volumes down 20 per cent Yield impact held to only a 6 per cent decline Market share up to 28.4 per cent (from 24.9 per cent) Revival in reseller titles, some stability in other markets Healthcare grew 3 per cent despite market conditions Marketing spend up and client consolidation unwound New products: £7m investment and £7m revenue

26 United Business Media 26 CMP Media Actions and outlook Not planning on tech revenue growth Aiming to hold yields Further cost savings to flow through Targeting margin improvements Ongoing commitment to new product development

27 United Business Media 27 Operating Profit Professional Media: CMP Asia Professional Media: CMP Asia Twelve months to 31 December 2002£m 2001 £m Change % Underlying % Turnover Solid progress on revenue, profit and margins Launches (£2.3m) boosted sq meterage, up 12.6 per cent Upgraded sales and marketing programme Integration of KSS in Japan strengthened portfolio Further 12 launches scheduled for

28 Operating Profit Professional Media: CMP Information Professional Media: CMP Information Twelve months to 31 December2002£m 2001 £m Change % Underlying % Turnover (13.3) Revenue down due to ad market weakness and closures Profits up 84% and margins doubled Extensive continuous improvement programme Significant cost reductions and repositioning of products 7 new products developed Events business stronger - saw positive growth (4.2)

29 United Business Media 29 Professional Media: UAP Professional Media: UAP Twelve months to 31 December Modest revenue growth Profit boosted by over 30 per cent Substantial cost saving programme Every title delivered a profit increase £m 2001 £m Change % Underlying % Turnover Operating Profit

30 United Business Media 30 PR Newswire - News Distribution PR Newswire - News Distribution Twelve months to 31 December2002£m 2001 £m Change % Underlying % Turnover US RoW Operating profit US RoW (1.3) % (17.8) (16.2) (17.7) (48.1) - (51.7) (11.8) (31.1) (13.8) (38.9) - (44.4) Margin

31 United Business Media 31 US message volume down 11 per cent Revenue per message up 4 per cent H1 market conditions continued Earnings releases down 15 per cent, M&A down 24 per cent Regulatory releases length up 10 per cent Discretionary products under pressure but MultiVu, OMA and other launches generated £6m revenue News Distribution News Distribution 2002 Review

32 United Business Media 32 Impact from Sarbanes-Oxley and Corporate Governance Further product developments Already launched Premium Disclose – with US distribution Target private organisations as well as listed Develop policy newswire Sales force restructuring – prioritise resources to major clients Holding rate card Adding functionality and holding prices News Distribution News Distribution Actions and outlook

33 United Business Media 33 NOP World - Market Research NOP World - Market Research Twelve months to 31 December2002£m 2001 £m Change % Underlying % Turnover US RoW Operating profit US RoW Margin % (37.1) 30.9 (25.4) (16.8) (1.7) (10.6) (36.9) 42.4 (21.0)

34 United Business Media 34 NOP World NOP World 2002 Review Deterioration in US healthcare and custom markets action on cost revitalised product line SMC improvement in Q4 Strength in US syndicated media and in automotive Strength in UK financial and healthcare UK market slowing in H2 Continuing rapid growth in online from $7m to $30m in healthcare alone introduced 80,000 strong RoperASW panel New launches including LifeMatrix already generated £1m revenue

35 United Business Media 35 NOP World NOP World Actions and outlook Further cost containment and improved productivity Healthcare sector stabilising No major syndicated media contracts up for renewal in 2003 Grow market share Product development Backed by detailed client research e.g. launch of Scripdriver Aggressive new marketing campaign New CMO appointed

36 United Business Media 36 United Business Media United Business Media Strategic Priorities Improving performance Margin target 10 per cent Maintaining yields Growing market share Financial Strength Delivering high cashflow Building and monetising investment portfolio Investment in growth Continuing investment in new products Monitoring acquisitions


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