Presentation is loading. Please wait.

Presentation is loading. Please wait.

United Business Media 2 Turnover Operating profit* Earnings per share* Net cash Key Financials Key Financials Twelve months to 31 December * Before exceptionals.

Similar presentations

Presentation on theme: "United Business Media 2 Turnover Operating profit* Earnings per share* Net cash Key Financials Key Financials Twelve months to 31 December * Before exceptionals."— Presentation transcript:


2 United Business Media 2 Turnover Operating profit* Earnings per share* Net cash Key Financials Key Financials Twelve months to 31 December * Before exceptionals and amortisation of goodwill £930.5m £81.1m 18.1p £49.3m £1,049.3m £161.4m 27.4p £1,553.0m

3 United Business Media 3 Very tough trading CMP Media EBIT down from £101m to £11m Resilience of PRN & NOPW Market share gains across key businesses £110m full year cost reduction over ,400 staff reduction in 2001 Leveraged for the upturn Strong balance sheet and cash position £1.25 billion returned £370m goodwill impairment £130m of acquisitions 2001 Review

4 United Business Media Divisional Trading NOPW: resilient but H2 weakness in UK PRN: lower volumes but increasing revenue per message CMP Media: Market share up to 28% Ad page volumes, market down 35%, CMP down 26% Revenue running at down 40% since September CMP Asia: strong performance, revenue & profit ahead CMP Information: radical restructuring to boost performance

5 United Business Media 5 Focus on core professional and business markets Build market share Maximise growth potential through investment in innovation and acquisitions Focus on value Progress on Strategy

6 United Business Media 6 NOP World order book ahead UK recovering from difficult Q3 US continued growth - healthcare PR Newswire Gradual recovery since September, regulatory strong £5m invested in evaluation products & European network CMP Media Planning on revenue 40% down on 2000 No recovery yet: managing cost / revenue balance CMP Asia 2002 consolidation, building growth potential CMP Information Cost restructuring leading to recovery 2002 Outlook


8 Continuing turnover (£m) Continuing operating profit* (£m) Discontinued operating profit* (£m) Total operating profit* (£m) Interest (£m) PBT * (£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) , (43.0) (11.3) (49.8) - (74.4) - (50.5) (33.9) (45.9) 8

9 Impairment of goodwill – professional media Restructuring charges (mainly property) Provisions for losses on closures and disposals Other, including acquisition integration costs Total Exceptionals Exceptionals Twelve Months to 31 December2001£ms (370.0) (64.8) (51.5) (14.1)

10 Opening cash Operating profit Less return of capital Acquisitions Channel 5 Interest received Capex Depreciation Dividend paid Tax paid Other Closing cash Cashflow Cashflow Twelve Months to 31 December2001£ms 1, (1,225.9) (131.8) (71.4) 23.6 (27.7) 23.3 (93.2) (4.1) (57.5) Cash conversion 100%

11 Goodwill Investments (Ch 5, SIS, SDN, ITN, PA) Net Cash Other net liabilities Net assets Balance Sheet Balance Sheet 31 December 2001£m (343.6)

12 Segmental Analysis Segmental Analysis Twelve months to 31 December2001£m2001£m Group Turnover Operating Profit Change % Change % Underlying % Underlying % Market Research News Distribution Professional Media Business Services Consumer Media Online Total Continuing Discontinued (20.1) (10.2) (6.3) (47.0) (11.3) 3.2 (2.3) (23.3) (16.0) (6.3) (48.9) (16.7) (21.1) 81.1 (20.1) 5.3 (13.8) (74.0) (51.4) (3.1) 43.6 (49.8) (3.7) (15.6) (76.3) (54.2) (3.1) 45.5 (52.7) 12

13 UBM by Geography UBM by Geography Twelve months to 31 December 2001 Turnover Operating Profit US 67% UK 25% Asia 5% Europe 3% US 62% UK 15% Asia 13% Europe 10% 13

14 Financial Objectives United Business Media Net debt capacity around £400m Minimum interest cover of 5 times Acquisition financial criteria Cost of capital 8% Generally EPS enhancing first full year Investment targets Exhibitions - break even in year 2 Organic - 2 to 4 year payback 14

15 Financial Objectives United Business Media Margins: specific targets set for each division Cash conversion target of 100% Prudent financial policies FRS 17 (Pensions):implementation planned for 2002 Estimated balance sheet impact c£40m FRS 18 (Accounting Policies): implemented 2001 Conservative revenue recognition FRS 19 (Deferred Tax): implementation planned for 2002 £5m write up in value 15


17 Operational Objectives Improve margins Gain market share Invest in innovation Deliver synergies across the group Re-engineering Shared services New products Margin Targets 2001 Medium Term % Towards 10% 14% / 15% 17

18 VolvoFord Glaxo Smith Kline AOL Time Warner British Telecom Compaq F. Hoffmann-La Roche Visa International

19 Market Research Market Research Twelve months to 31 December2001£m 2000 £m Change % Underlying % Turnover US RoW Operating profit US RoW Margins (42.9) (34.3) (3.7) Target over 12% in

20 United Business Media 20 Strength in Companies: MRI, ASW (profit level), MMI + SMC Business areas: Healthcare, Financial, Syndicated Pressure on Companies: ASW (topline), NOP Research (UK) Sectors: Technology, Consumer, Automotive, Ad Hoc Trends Strong H1, hard hit Q3, rebound Q4 NOP World NOP World Key trends during 2001

21 United Business Media 21 Company ACNielsen IMS Health Kantar Group TNS GFK IPSOS NOP World Market Research Margins Market Research Margins Comparison with NOP World EBIT Margins % 23.0% 10.9% 9.3% 7.3% 12.2% 2001 EBIT Margin

22 United Business Media 22 Smooth integration, are performing well Costs being taken out of RoperASW overlaps Revenue synergies beginning to flow New products Co-ordinated sales programme Acquisitions Acquisitions Roper Starch, Allison-Fisher & Cozint

23 Bank of America DupontPfizerWalmart Johnson & Johnson Microsoft Sun Microsystems OracleFord General Motors

24 United Business Media 24 PRN Strategy - The Way Ahead Serve the total communication cycle of our core markets Keys to Success Global Reach Product InnovationService Quality Through Target Evaluate OVER 40,000 Clients Distribute

25 News Distribution News Distribution Twelve months to 31 December2001£m 2000 £m Change % Underlying % Turnover US RoW Operating profit US RoW Margins % (1.7) (92.6) (13.8) (2.1) (3.9) (2.3) (6.6) (77.8) (15.6) 25 US Margin target over 30% in 2002

26 United Business Media 26 Market share over 60% of Fortune 500 US message volume down 14% Underlying growth in disclosure releases US revenue per message up 6% Evaluation products now 16% (13%) of US revenue News Distribution News Distribution Key trends during 2001

27 United Business Media 27 News Distribution Long Term US Trends Average message growth rate 10% No of Messages Revenue per message $

28 United Business Media 28 Deregulation in London PRN Disclose starts April 2 nd PRN in France, Spain and Holland Cyperus ANP EU proposals greater transparency + uniform disclosure standards News Distribution European opportunities

29 United Business Media 29Innovations

30 Novartis Eli Lilly Computer Associates AstraZenecaDellSonyMicrosoftIBMCompaq Hewlett Packard/Taylor

31 Operating Profit CMP Media CMP Asia CMP Information Total Post online margin 2.2% (13.0%). Normal Target Margins 14% / 15% Professional Media Professional Media Twelve months to 31 December 2001£m 2000 £m Change % Underlying % Turnover CMP Media CMP Asia CMP Information Total (31.9) 17.1 (0.1) (23.3) (89.3) 11.8 (36.4) (76.3) (28.7) (20.1) (89.3) 5.0 (21.8) (74.0)

32 United Business Media 32 CMP Asia CMP Information Very strong year Acquisition of KSS 6 launches planned in 2002 Year of radical restructuring Resilient exhibitions 2002 margin benefit from cost programme

33 Monthly Market Share Analysis By Ad Page Volumes 32.0% CMP 9.6% Ziff 11.4% IDG 10.8% Cahners 5.4% Penton Source: IMS/Auditor CMP – High Tech 1/0012/00 Jan 02 33

34 CMP Media CMP Media Monitoring key indicators Source: CMP, Broker Research 34 High Tech Capex and CMP Revenue Profitability of High Tech Corporates High Tech Capex Semiconductors

35 United Business Media 35 Operating Cost Reductions Saved against 2000 Operating Costs 2001 Further Savings in 2002 COSTS £M CMP Media / CMPi PR Newswire Total

36 United Business Media 36 United Business Media United Business Media Strategic Priorities Competitive and effective cost base Market share gains, aiming for leadership Build market research and information revenues Cautiously acquire companies with good strategic fit Invest in innovation build on sector strengths Develop insight and evaluation products

37 Supplementary Slides

38 UBM Revenue Type UBM Revenue Type Continuing turnover - twelve months to 31 December High Tech Advertising = 8% profits (2001) was 30% in High Tech Ad Other Ad Non Advertising High Tech Ad Other Ad Non Advertising

39 United Business Media 39 Market Research Market Research Sector by % of 2001 Turnover Field Marketing Other Healthcare Automotive Business IT Media Consumer

40 Satellite Internet FAX Archiving Microsites CNOC VIQ Databases WAP/PDAs Multimedia VNRs Digital Photos Conference Calls on the Web Streaming Video Evaluate Whos using the information and for what purposes? Evaluate IR/PR programs Seek Consumer Information Internet (eWatch) Electronic Clipping E-Commerce Market Intelligence Usage Tracking Sentiment Analysis Measure (Tbutton) -- quantitative --qualitative Distribute Sources (News Releases) Distribute Destinations Corporations Government Associations PR/IR Agencies Expert Sources News Media Financial Markets Investors General Public (Consumers) Target Target Sources News Releases Industry Publications Global Media Data IR Data PR Newswire - Service Continuum 40

41 United Business Media 41 US High Tech Companies US High Tech Companies Quarterly Earnings 2001 – EPS Growth Brokers Summary

42 United Business Media 42 Semiconductor Worldwide Market Semiconductor Worldwide Market Three Month Moving Average

43 United Business Media 43 CMP Media US Revenues CMP Media US Revenues 2000 restated to exclude ALL closures 2001 $m 2000 $m As reported Titles and events closed Continuing revenues 741 (88) (43) 458

44 Investments Ownership %Business Channel 535Free to air T.V. with RTL (65%) ITN20National provider of news to ITV SIS20Internet / Horse Racing SDN33Digital terrestrial television/multiplex Paperloop38Pulp & Paper JV Press Association17News Service 44

45 A leading global provider of market information to high growth markets.

Download ppt "United Business Media 2 Turnover Operating profit* Earnings per share* Net cash Key Financials Key Financials Twelve months to 31 December * Before exceptionals."

Similar presentations

Ads by Google