Post on 26-Mar-2015
1
Intelligent Media Intelligent Media
United Business Media
2United Business Media
2003 Highlights2003 Highlights
Strong profit growth
Effective cost management
Improving yields and revenue
Successful investment programme
Outlook positive
*before amortisation of intangibles and goodwill and prior year exceptionals
Financial Results Financial Results
Turnover (£m)
Profit before tax * (£m)
EPS * (p)
Operating margin * (%)
Dividend per share (p)
Net cash (£m)
20032003 2002 Change%
746.7
103.3
24.0
13.3
9.0
46.5
793.4
72.9
16.5
8.2
7.0
93.5
(5.9)
41.7
45.5
62.7
28.6
(50.3)
12 months to 31:12
(3.0)
53.1
Underlying%
3
4United Business Media
Financial Results Financial Results Progress accelerated in H2
Turnover (£m)
Operating profit * (£m)
Profit before tax * (£m)
EPS * (p)
Operating margin * (%)
20032003H2H2
2002H2
Change%
380.6
27.5
32.2
7.7
7.2
402.7
57.4
57.8
13.3
14.3
5.8
108.7
79.5
72.7
97.3
Underlying%
4.3
143.8
*before amortisation of intangibles and goodwill and prior year exceptionals
5United Business Media
The Last Three YearsThe Last Three YearsTransforming 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
2003 10 per cent target secured
Medium term target of 15 per cent
Maximised operating cash inflow
Balance sheet strength
6United Business Media
2003 Recovery Underway2003 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
7United Business Media
2003 Recovery Underway 2003 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
8United Business Media
Trading OutlookTrading OutlookH2 trends continuing
Publications and exhibitions Improving tech climate Growth in healthcareAsia returns to pre-SARS volumes UK business growing margins
News distributionVolumes and yields improvingEliminating losses in Europe
Market researchGrowth in year end order book Restructuring to improve margin and revenue growth
Acquisitions delivering
9
FINANCIAL REVIEW
10United Business Media
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 Financial Results
20032003 2002 Change %
793.4
64.9
10.1
(2.1)
72.9
(16.0)
16.5
7.0
1.51
746.7
99.4
9.4
(5.5)
103.3
(22.7)
24.0
9.0
1.64
(5.9)
53.2
41.7
41.5
45.5
28.6
8.6
12 months to 31:12
*before amortisation of intangibles and goodwill and prior year exceptionals
11United Business Media
Operating profit (before goodwill)
Depreciation
Capex
Working capital/other
Operating cash inflow
Cash conversion
20022002£m£m
64.9
23.2
(10.9)
13.8
91.0
140%
Operating Cash ConversionOperating Cash Conversion
20032003£m£m
99.4
25.3
(6.9)
0.1
117.9
119%
12 months to 31:12
CashflowCashflow
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)
15.3
4.4
(10.4)
(35.1)
24.0
(7.4)
(23.2)
44.212
20032003£m£m
117.9
(26.3)
8.4
2.3
(127.8)
(23.1)
13.0
(2.6)
(8.8)
(47.0)
12 months to 31:12
£ Cash
£ Debt
$ Cash (in £)
$ Debt (in £)
Other
Net Cash
Loans to five
Other financial expenses - FRS17
P&L Interest
Breakdown of Net Cash and Breakdown of Net Cash and Interest Interest
31:12:03 £m
Interest£m
191.0
(14.9)
415.5
(526.9)
(18.2)
46.5
160.3
9.5
(1.6)
7.5
(14.8)
(0.0)
8.8
(5.5)
3.9
13
Segmental AnalysisSegmental Analysis
Group TurnoverGroup Turnover Operating ProfitOperating Profit
Total Total Growth on Prior Year TotalTotal Growth
£m£m Reported%
Currency%
Acquisition%
Underlying%
£m£m Reported%
Underlying%
CMP Media 210.5 (11.6) (7.5) 1.0 (5.4) 14.8 317.6 384.4
CMP Asia 44.4 (13.1) (7.4) 0.0 9.9 12.6 (8.0) 20.3
CMPi 135.0 5.8 (0.5) 13.9 (9.6) 25.3 150.5 130.1
UAP 58.1 0.0 0.0 0.5 (0.5) 14.0 10.2 12.4
PR Newswire 94.8 (10.1) (6.8) 0.0 (3.4) 13.4 (22.5) (9.3)
NOP World 203.9 (4.3) (4.4) 0.5 0.5 19.3 7.8 30.5
Total 746.7 (5.9) (4.9) 2.7 (3.0) 99.4 53.2 67.4
14
12 months to 31:12:03
15United Business Media
Underlying 2003 Revenue Underlying 2003 Revenue ChangeChange
Acquisitions
£21.7m
Biennials
£1.8m
SARS
(£8.8m)
Forex
(£38.8m)
Underlying
Decline
(£22.5m)
(3.0%)
16United Business Media
Geographic Segmental Geographic Segmental Analysis Analysis
US 60%UK 30%
EMEA
5%
Pacific
5%
Revenue Operating Profit
UK 25% US 51%
Pacific
11%EMEA
13%
17United Business Media
InvestmentInvestment
Net debt capacity increased to around £500mMinimum interest cover of 5 timesConservative approach to financing$375m of debt to be retired in 2004
Acquisition financial criteria
8% post tax hurdle rateGenerally eps enhancing first full year
Organic investment target paybacksPublishing and events in 1 to 2 yearsPRN and NOP in 3 to 5 years
18United Business Media
Investments DeliveringInvestments DeliveringOn track to generate 2004 £13m operating profit
Acquisitions
Consideration
£m
CMPi Builder / Barbour, Property Media
81.0
CMP Media Oncology / Cliggott 23.1
UAP This Caring Business 1.7
NOP Eurisko 24.1
Total 129.9
Contributed £2.9m in 2003 profit
19United Business Media
Operating profit/(loss)
Investments DeliveringInvestments DeliveringOrganic initiatives
Turnover
H1£m
H2£m
Total £m
16.4 24.2 40.6
(2.8) (1.3) (4.1)
20United Business Media
20032003£m£m
2002£m
Change%
12 months to 31:12 *
Turnover
Operating profit
259.9
8.5
244.7
(4.8)
6.2
277.1
Audience share up to 6.6%
Advertising share up to 8.1%
Net book values:five £129.4 mOther investments £43.6 m
* Unaudited
21
OPERATIONAL REVIEW
22United Business Media
Margin Performance Margin Performance
2003%
2002%
TOTAL 13.3 8.2
CMP Media
7.0 -
CMP Asia 28.4 26.8
CMPi 18.7 7.9
UAP 24.1 21.9
PR Newswire
14.1 16.4
NOP World
9.5 8.4
23United Business Media
Operating Profit (£m)
Operating Margin (%)
Professional MediaProfessional Media: CMP : CMP MediaMedia
Turnover (£m)
20032003 2002 Change %
210.5 238.2 (11.6)
14.8
7.0
(6.8)
-
317.6
-
12 months to 31:12
24United Business Media
-30
-20
-10
0
10
20
30
40
50
Enterprise Software Electronics Applied Network Channel Healthcare
H1 2003 Vs H1 2002H2 2003 Vs H2 2002
CMP Media Product AreasCMP Media Product AreasPercentage $ revenue change
25United Business Media
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
26United Business Media
-50
-40
-30
-20
-10
0
10
20
Jan-0
2
Mar
-02
May
-02
Jul-0
2
Sep-0
2
Nov-
02
Jan-0
3
Mar
-03
May
-03
Jul-0
3
Sep-0
3
Nov-
03
Jan-0
4
Total Market CMP Top CMP Titles
CMP Media CMP Media High Tech Ad page volumes% change on same month in prior year
Large higher yielding titles trending better than total
27United Business Media
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
28United Business Media
Operating Profit (£m)
Operating Margin (%)
Professional MediaProfessional Media: CMP : CMP AsiaAsia
Turnover (£m)
20032003 2002 Change%
44.4 51.1 (13.1)
12.6
28.4
13.7
26.8
(8.0)
5.8
12 months to 31:12
29United Business Media
CMP AsiaCMP Asia2003 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 & 2003
7 scheduled for 2004
30United Business Media
Operating Profit (£m)
Operating Margin (%)
Professional MediaProfessional Media: CMPi: CMPi
Turnover (£m)
20032003 2002 Change%
135.0 127.6 5.8
25.3
18.7
10.1
7.9
150.5
136.8
12 months to 31:12
31United Business Media
CMP InformationCMP Information2003 Review
Underlying revenue down 9.6 per cent
Underlying profit up 130.1 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
32United Business Media
Operating Profit (£m)
Operating Margin (%)
Professional MediaProfessional Media: UAP: UAP
Turnover (£m)
20032003 2002 Change%
58.1 58.1 0.0
14.0
24.1
12.7
21.9
10.2
10.2
12 months to 31:12
33United Business Media
UAPUAP2003 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
34United Business Media
PR Newswire - News PR Newswire - News DistributionDistribution
20032003£m£m
2002£m
Change%
Turnover
America
RoW
Operating profit
America
RoW
86.0
8.8
94.8
16.1
(2.7)
13.4
14.1
(10.0)
(10.2)
(10.1)
(16.6)
-
(22.5)
(13.9)Margin
95.6
9.8
105.4
19.3
(2.0)
17.3
16.4
12 months to 31:12
35United Business Media
Quarterly Newswire VolumesQuarterly Newswire VolumesCore US News Distribution in thousands
46.4
42.0
48.7
45.944.3
41.941.1
48.6
42.3 43.4
Q1 Q2 Q3 Q4
2001 2002 2003
H1 volumes down 8%, H2 just ahead of prior year54.7 54.8
35k->
36United Business Media
PR Newswire – News PR Newswire – News DistributionDistribution2003 Review
Message volumes up in Q4 2003
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
37United Business Media
NOP World - Market NOP World - Market ResearchResearch
20032003£m£m
2002£m
Change % Turnover
America
RoW
Operating profit
America
RoW
127.6
76.3
203.9
14.0
5.3
19.3
9.5
(7.7)
2.0
(4.3)
8.6
6.7
7.8
12.6Margin
138.2
74.8
213.0
13.0
4.9
17.9
8.4
12 months to 31:12
38United Business Media
NOP World – Market ResearchNOP World – Market Research2003 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
39United Business Media
SummarySummary
Business model transformed
Yields and revenue improving
Investment programme success
Revenue and margin growth
Investments delivering, more to
come
Trading climate improving
2003 Achievements2003 Achievements 2004 Outlook2004 Outlook